Allstate Enhances Customer Value, Lowers Prices for 7.8 Million Customers in 2025 (Form 8-K)

Allstate Enhances Customer Value, Lowers Prices for 7.8 Million Customers in 2025

NORTHBROOK, Ill., Feb. 4, 2026 - The Allstate Corporation (NYSE: ALL) today reported financial results for the fourth quarter of 2025.

"Allstate had a terrific year by better serving customers and making protection more affordable," said Tom Wilson, who leads The Allstate Corporation. "We 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. We also improved 69 million customer interactions and provided customers with nearly $38 billion in support and financial resources when the unexpected happened in 2025."

"Total policies in force increased to 210.9 million in the fourth quarter, up 3.0% from the prior year, driven by broad distribution and affordable, simple, connected products. Revenues increased to $17.3 billion in the fourth quarter and $67.7 billion for the full year. Full-year net income was $10.2 billion and adjusted net income* was $9.3 billion. Reflecting this success, the common dividend will increase to $1.08 per share to be paid in the second quarter and a $4.0 billion share repurchase program will be initiated when the existing $1.5 billion program is completed," concluded Wilson.

Fourth Quarter 2025 Results

•Total revenues of $17.3 billion in the fourth quarter of 2025 were $839 million or 5.1% higher than the prior year quarter.

•Net income applicable to common shareholders was $3.8 billion in the fourth quarter of 2025, compared to $1.9 billion in the prior year quarter, reflecting strong operating results.

•Adjusted net income* was $3.8 billion, or $14.31 per diluted share, compared to $2.1 billion in the prior year quarter.

Full Year 2025 Results

•Total revenues were $67.7 billion, 5.6% above the prior year.

•Net income applicable to common shareholders was $10.2 billion compared to $4.6 billion in 2024.

•Adjusted net income* was $9.3 billion generating an adjusted net income return on equity* of 38.3%.

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The Allstate Corporation Consolidated Highlights
			As of or for the three months ended December 31,															As of or for the twelve months ended December 31,
($ in millions, except per share data and ratios)			2025						2024			% / pts Change						2025						2024			% / pts Change
Consolidated revenues			$	17,345					$	16,506		5.1		%				$	67,685					$	64,106		5.6		%
Net income applicable to common shareholders			3,803						1,899			100.3		%				10,165						4,550			123.4		%
per diluted common share			14.37						7.07			103.3		%				38.06						16.99			124.0		%
Adjusted net income*			3,788						2,062			83.7		%				9,304						4,906			89.6		%
per diluted common share*			14.31						7.67			86.6		%				34.83						18.32			90.1		%
Return on Allstate common shareholders' equity (trailing twelve months)
Net income applicable to common shareholders																		42.3		%				25.8		%	16.5
Adjusted net income*																		38.3		%				26.8		%	11.5
Common shares outstanding (in millions)																		260.1						265.0			(1.8)		%
Book value per common share																		$	108.45					$	72.35		49.9		%
Total policies in force (in thousands) (1)																		210,937						204,741			3.0		%

(1)Excludes policies in force related to the employer voluntary benefits and group health businesses sold.

* Measures used in this release that are not based on accounting principles generally accepted in the United States of America ("non-GAAP") are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the "Definitions of Non-GAAP Measures" section of this document.

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•Property-Liability earned premiums of $14.8 billion increased 6.1% in the fourth quarter of 2025 compared to the prior year, primarily driven by higher average premiums and policy in force growth. Underwriting income was $4.0 billion compared to $1.8 billion in the prior year quarter.

Property-Liability Results
			As of or for the three months ended December 31,												As of or for the twelve months ended December 31,
($ in millions)			2025			2024			% / pts Change						2025			2024			% / pts Change
Premiums written			$	14,572		$	13,757		5.9		%				$	59,546		$	55,926		6.5		%
Premiums earned			14,776			13,933			6.1		%				57,682			53,866			7.1		%
Recorded combined ratio			72.9			86.9			(14.0)						85.2			94.3			(9.1)
Underlying combined ratio*			76.6			83.0			(6.4)						79.4			84.6			(5.2)
Catastrophe losses			$	209		$	410		(49.0)		%				$	4,959		$	4,964		(0.1)		%
Underwriting income			4,006			1,832			118.7		%				8,540			3,080			177.3		%
Policies in force (in thousands)															38,275			37,530			2.0		%

◦Premiums written increased 5.9% compared to the prior year quarter, reflecting higher auto and homeowners insurance average premiums and policies in force.

◦Property-Liability combined ratio was 72.9 for the quarter, which was an improvement of 14.0 points versus the prior year quarter due to higher average earned premiums, the benefit of non-catastrophe reserve releases and lower catastrophe losses.

◦Policies in force increased by 2.0%, led by growth in auto and homeowners insurance policies.

◦Allstate-branded Affordable, Simple, Connected auto insurance products are now available in 43 states with the homeowners insurance product available in 31 states. Custom360® middle market standard and preferred auto and homeowners insurance products for the independent agent channel are available in 36 states.

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◦Allstate Protection auto insurance results benefited from the Transformative Growth initiative, delivering strong margins and higher new business levels than the prior year.

Allstate Protection Auto Results
			As of or for the three months ended December 31,												As of or for the twelve months ended December 31,
($ in millions, except ratios)			2025			2024			% / pts Change						2025			2024			% / pts Change
Premiums written			$	9,399		$	9,116		3.1		%				$	38,649		$	37,296		3.6		%
Premiums earned			9,622			9,348			2.9		%				38,090			36,475			4.4		%
Recorded combined ratio			80.8			93.5			(12.7)						85.0			95.0			(10.0)
Underlying combined ratio*			87.6			93.0			(5.4)						88.1			93.4			(5.3)
Underwriting income			1,851			603			NM						5,724			1,810			NM
Policies in force (in thousands)															25,504			24,936			2.3		%

NM = not meaningful

◦Written and earned premiums grew 3.1% and 2.9%, respectively, compared to the prior year quarter. Auto insurance rate increases resulted in an annualized premium impact of 0.2% in the fourth quarter and 2.6% in 2025.

◦The recorded auto insurance combined ratio of 80.8 in the fourth quarter of 2025 was a 12.7 point improvement from the prior year quarter, reflecting higher average earned premiums, moderating loss costs and the benefit of non-catastrophe reserve releases. Prior year non-catastrophe reserve reestimates were $719 million in the fourth quarter, a 7.5 point benefit to the combined ratio, reflecting favorable severity development in personal auto injury and physical damage coverages.

◦The underlying auto insurance combined ratio* of 87.6 in the fourth quarter of 2025 was a 5.4 point improvement from the prior year quarter, as growth in average earned premiums exceeded improving underlying loss and expense trends per policy. The fourth quarter underlying auto insurance combined ratio* would have been 90.4 when adjusted for 2.8 points of favorable development on claims reported in the first three quarters of 2025.

◦Auto insurance policies in force grew by 2.3% with a 22.8% increase in new business reflecting expanded distribution, increased marketing, new products and sophisticated rating plans. Active brand auto insurance policies grew by 3.3%, which was partially offset by decreases in legacy Esurance and Encompass policies.

◦Allstate Protection homeowners insurance remains a competitive advantage for Allstate and a growth opportunity. Underwriting profit of $1.8 billion increased from $1.1 billion in the prior year quarter, reflecting lower catastrophes and excellent underlying margins.

Allstate Protection Homeowners Results
			As of or for the three months ended December 31,												As of or for the twelve months ended December 31,
($ in millions, except ratios)			2025			2024			% / pts Change						2025			2024			% / pts Change
Premiums written			$	4,110		$	3,624		13.4		%				$	16,565		$	14,416		14.9		%
Premiums earned			4,055			3,548			14.3		%				15,363			13,360			15.0		%
Recorded combined ratio			55.3			69.8			(14.5)						84.4			90.1			(5.7)
Catastrophe Losses			$	170		$	315		(46.0)		%				$	4,087		$	3,717		10.0		%
Underlying combined ratio*			51.4			59.5			(8.1)						57.9			62.5			(4.6)
Underwriting income			1,813			1,070			69.4		%				2,393			1,319			81.4		%
Policies in force (in thousands)															7,697			7,511			2.5		%

◦Written premiums and earned premiums increased by 13.4% and 14.3% compared to the prior year quarter, respectively, due to higher average premiums and policy in force growth. A 7.4% increase in Allstate brand homeowners insurance average gross written premium compared to the prior year quarter reflects continued rate increases and higher home replacement costs.

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◦The recorded homeowners insurance combined ratio of 55.3 was 14.5 points below the fourth quarter of 2024, due to higher average earned premiums, lower catastrophe losses and lower underlying losses.

◦Catastrophe losses of $170 million in the quarter decreased $145 million compared to the prior year quarter due to fewer and less severe events, as well as the absence of any hurricanes and tropical storms.

◦The underlying combined ratio* of 51.4 improved by 8.1 points compared to the prior year quarter, primarily driven by higher average premiums and favorable non-catastrophe loss trends.

◦Policies in force increased 2.5% compared to the prior year quarter, primarily driven by 3.2% growth in Allstate brand homeowners insurance policies, offset by a reduction in National General legacy products.

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•Protection Services protects customers through five businesses where Allstate branded offerings are embedded in other offerings. Revenues increased to $917 million in the fourth quarter of 2025, 3.1% higher than the prior year quarter, primarily due to Protection Plans and Roadside. Adjusted net income of $57 million increased by $7 million compared to the prior year quarter.

Protection Services Results
			Three months ended December 31,												Twelve months ended December 31,
($ in millions)			2025			2024			% / $ Change						2025			2024			% / $ Change
Total revenues (1)			$	917		$	889		3.1		%				$	3,546		$	3,237		9.5		%
Protection Plans			609			528			15.3						2,300			1,987			15.8
Dealer Services			148			147			0.7						590			587			0.5
Roadside			61			54			13.0						231			224			3.1
Arity			60			121			(50.4)						266			286			(7.0)
Identity Protection			39			39			-						159			153			3.9
Adjusted net income			$	57		$	50		$	7					$	218		$	217		$	1
Protection Plans			49			37			12						179			157			22
Dealer Services			7			4			3						21			21			-
Roadside			12			10			2						46			39			7
Arity			(12)			(3)			(9)						(34)			(8)			(26)
Identity Protection			1			2			(1)						6			8			(2)

(1)Excludes net gains and losses on investments and derivatives.

◦Protection Plans continued to expand distribution relationships and product offerings. Revenue of $609 million increased $81 million, or 15.3%, compared to the prior year quarter primarily due to strong international growth. Adjusted net income of $49 million in the fourth quarter of 2025 was $12 million higher than the prior year quarter.

◦Dealer Services generated revenue of $148 million, an increase of $1 million compared to the prior year quarter. Adjusted net income of $7 million was $3 million higher than the prior year quarter.

◦Roadside revenue of $61 million in the fourth quarter of 2025 increased 13.0% compared to the prior year quarter reflecting increased bundling with Allstate branded Affordable, Simple, Connected auto insurance products and higher third-party sales. Adjusted net income of $12 million in the fourth quarter was $2 million higher than the prior year quarter.

◦Arity revenue of $60 million decreased $61 million compared to prior year quarter due to lower lead generation revenue. Adjusted net loss of $12 million in the fourth quarter of 2025 compared to a loss of $3 million in the prior year quarter.

◦Identity Protection revenue of $39 million in the fourth quarter of 2025 was flat compared to the prior year quarter. Adjusted net income of $1 million in the fourth quarter of 2025 decreased compared to $2 million in the prior year quarter.

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•Allstate Investments uses a proactive approach to balancing risk and return for the $83.2 billion portfolio. Net investment income of $892 million in the fourth quarter of 2025 increased by $59 million from the prior year quarter primarily due to market-based portfolio growth.

Allstate Investment Results
			Three months ended December 31,												Twelve months ended December 31,
($ in millions, except ratios)			2025			2024			$ / pts Change						2025			2024			$ / pts Change
Net investment income			$	892		$	833		$	59					$	3,449		$	3,092		$	357
Market-based (1)			804			727			77						3,036			2,728			308
Performance-based (1)			146			167			(21)						648			618			30
Net gains (losses) on investments and derivatives			$	73		$	(201)		$	274					$	(168)		$	(225)		$	57
Change in unrealized net capital gains and losses, pre-tax (2)			$	(70)		$	(1,444)		$	1,374					$	1,365		$	(192)		$	1,557
Total return on investment portfolio (2)			1.1		%	(1.1)		%	2.2						5.8		%	3.8		%	2.0

(1)Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.

(2)Includes investments held for sale.

◦Market-based investment income was $804 million in the fourth quarter of 2025, an increase of $77 million, or 10.6%, compared to the prior year quarter, reflecting growth in the asset balances to $73.4 billion in the market-based portfolio.

◦Performance-based investment income totaled $146 million in the fourth quarter of 2025, a decrease of $21 million compared to the prior year quarter due to lower private equity and real estate returns. The overall portfolio allocation to performance-based assets provides a diversifying source of higher long-term returns; quarterly volatility in reported results is expected.

◦Net gains on investments and derivatives were $73 million in the fourth quarter of 2025, compared to losses of $201 million in the prior year quarter. Fourth quarter results were driven by fixed income sales and higher valuation on equity investments.

◦Unrealized net capital gains totaled $382 million (pre-tax), a $70 million decrease to the prior quarter as previously unrealized gains were recognized through sales of fixed income securities during the quarter.

◦Total return on the investment portfolio was 1.1% for the fourth quarter and 5.8% for the full year 2025.

◦Macroeconomic impacts are regularly monitored through our integrated Enterprise Risk and Return Management framework. In the fourth quarter of 2025, growth exposure increased through a higher allocation to public equity securities.

Proactive Capital Management

"Fourth-quarter operating results generated an attractive adjusted net income return on equity and additional deployable capital," said John Dugenske, Interim Chief Financial Officer and President, Investments and Corporate Strategy. "Total estimated statutory surplus increased to $23.0 billion, and the holding company ended the year with $7.5 billion of assets. Over $2.2 billion was returned to shareholders in 2025, through a combination of share repurchases and common shareholder dividends. The common shareholder dividend will increase to $1.08, payable on April 1, 2026, to stockholders of record at the close of business on March 2, 2026. In addition, a $4.0 billion share repurchase program, over 24 months, will commence once the existing $1.5 billion program has been fully executed," concluded Dugenske.

Visit www.allstateinvestors.com for additional information about Allstate's results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, February 5. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

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