Allstate Reports $10.17 Billion Net Income for Fiscal Year 2025, Driven by Underwriting Gains

Allstate Corp. (NYSE: ALL) reported a net income applicable to common shareholders of $10.17 billion for the fiscal year 2025, a significant increase compared to the $4.55 billion reported in 2024. This surge in profitability was primarily attributed to higher underwriting income and gains on dispositions. The company's total revenue also saw an uptick, reaching $67.69 billion, up 5.6% from the previous year, driven by growth in auto and homeowners insurance policies in force and premium rate increases. Net investment income rose to $3.45 billion, a $357 million increase year-over-year, reflecting improved market-based and performance-based investment results.

The Allstate Protection segment, a major contributor to the company's revenue, reported underwriting income of $8.69 billion in 2025, compared to $3.15 billion in 2024. This improvement was largely due to increased premiums earned and the benefit of prior year reserve releases, although partially offset by higher expenses. Auto insurance premiums written increased by 3.6%, while homeowners insurance premiums written saw a more substantial increase of 14.9%. Policies in force also experienced growth, with auto policies increasing by 2.3% and homeowners policies by 2.5%. The company implemented rate increases of 3.5% for auto insurance and 7.6% for homeowners insurance during the year.

Strategic developments during the year included the dispositions of the employer voluntary benefits (EVB) and group health businesses, resulting in after-tax gains of $641 million and $499 million, respectively. These divestitures are part of Allstate's ongoing efforts to streamline its operations and focus on its core property-liability and protection services businesses. The company also continued to advance its Transformative Growth strategy, aimed at becoming a low-cost digital provider of affordable, simple, and connected protection solutions.

Key operational developments included the continued rollout of Affordable, Simple, and Connected auto and homeowners insurance products, available in 43 and 31 states, respectively, with completion targeted for 2026. The Custom360® middle market standard and preferred auto and homeowners insurance products were rolled out to 36 states by the end of 2025. As of December 31, 2025, Allstate had approximately 53,000 full-time employees and 300 part-time employees. The company's financial position remained strong, with investments totaling $83.24 billion and Allstate shareholders' equity reaching $30.61 billion. The company also continued its share repurchase program, acquiring 6 million common shares for $1.24 billion during the year.