Allstate Corporation announced financial results for the fourth quarter of 2025, with total revenue of $17.3 billion, an increase of 5.1% from the same period last year, and net profit of $3.8 billion, compared with $1.9 billion in the same period last year.
The insurer also announced full-year 2025 financial results, with total revenue up 5.6% from the previous year to $67.7 billion. Net profit was $10.2 billion, compared with $4.6 billion reported in 2024.
Adjusted net income was $3.8 billion in the fourth quarter of 2025, compared with $2.1 billion in the fourth quarter of 2024. Adjusted net profit in 2025 will be US$9.3 billion, and the adjusted net profit return on equity will be 38.3%.
Fourth-quarter property and liability insurance premium income reached $14.8 billion, an increase of 6.1% due to higher average premiums and growth in in-force policies. Underwriting revenue was $4.0 billion, compared with $1.8 billion in the same period last year.
Written premiums increased 5.9% compared to the fourth quarter of 2024, reflecting increases in average premiums and policies in force for auto and homeowners insurance.
The combined property-to-liability ratio for the quarter was 72.9, 14.0 percentage points higher than the same period last year, due to higher average premiums earned, favorable non-catastrophe reserve disbursements and lower catastrophe losses.
Catastrophe losses in the fourth quarter of 2025 fell 49%, totaling $209 million, compared with $410 million in the fourth quarter of 2024.
Policies in force increased 2.0%, led by growth in auto and homeowners insurance policies.
“Allstate had a great year as we better served our customers and made coverage more affordable,” said Tom Wilson, principal at Allstate Corporation. “We proactively lowered premiums for our 7.8 million auto and home insurance customers by an average of 17 percent through tailored coverage reviews to offset rising costs.
“When the unexpected happens in 2025, we have also improved 69 million customer interactions and provided nearly $38 billion in support and financial resources to customers.”
Wilson further pointed out that the total number of policies in force climbed to 210.9 million in the fourth quarter, a year-on-year increase of 3%. This is driven by “wide distribution and affordable, simple, connected products.”
In the fourth quarter of 2025, Allstate Protection auto insurance premiums written and premiums earned increased 3.1% and 2.9%, respectively, compared to the same period last year.
In-force auto insurance policies increased by 2.3%, with new business increasing by 22.8%, reflecting expanded distribution, increased marketing efforts, new products and a comprehensive rating program.
Allstate Protection homeowners insurance continues to be a “competitive advantage.” The company noted that the segment’s underwriting profit was $1.8 billion, up from $1.1 billion a year earlier, reflecting fewer catastrophic events and superior underlying margins.
Premiums written and premiums earned increased 13.4% and 14.3%, respectively, compared to the fourth quarter of 2024 due to higher average premiums and growth in policies in force.
Protection services revenue increased to $917 million in the fourth quarter of 2025, an increase of 3.1% from the prior year period, primarily due to protection programs and roadside services.
Finally, Allstate reported net investment income of $892 million in the fourth quarter of 2025, an increase of $59 million from the prior year period primarily due to market-based portfolio growth.