Allstate Corp. fourth quarter 2025 net income applicable to common shareholders was about $3.8 billion, double the $1.9 billion booked for the same quarter the prior year.
Allstate’s Property-Liability business turned in a Q4 combined ratio 14 points better than Q4 2025, at 72.9. Catastrophe losses for the quarter were $209 million compared with $410 million.
For the full year, Allstate finished with net income up more than 123% to about $10.2 billion compared with 2024.
In Property-Liability, underwriting income was up 177.3% for the full year to about $8.5 billion. Catastrophe losses were nearly flat at about $5 billion for the full year but the combined ratio improved 9.1 points to 85.2.
Property-Liability booked underwriting income for Q4 of $4.0 billion compared with $1.8 billion during the same period the prior year. Q4 net premiums written increased 5.9% to about $14.6 billion.
The Northbrook, Illinois-based insurer’s auto segment turned in Q4 underwriting income of about $1.8 billion compared with $603 million for Q4 2024. The combined ratio for the segment improved 12.7 points to 80.8. Prior year reserve reestimates of $719 million from favorable severity development in personal auto injury and physical damage gave a 7.5-point benefit to the ratio.
For Allstate’s homeowners business, Q4 premiums written were up 13.4%, and a 46% drop in catastrophe losses to $170 million helped the line record underwriting income of about $1.8 billion compared with about $1.1 billion for Q4 2024.
The homeowners combined ratio for Q4 was 55.3. The full-year combined ratio in homeowners was 84.4 compared with 90.1 for all of 2024.
CEO Tom Wilson said the insurer in 2025 “proactively reduced premiums for 7.8 million auto and homeowners insurance customers by an average of 17% through tailored coverage reviews to offset cost inflation.”
Wilson said Allstate finished the year with 3% more policies in force to nearly 211 million, “driven by broad distribution and affordable, simple, connected products.”
Topics Auto Profit Loss Underwriting
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