ALLSTATE CORP (ALL): Results of Operations and Financial Condition
ALLSTATE CORP (ALL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE Contacts: Nick Nottoli Allister Gobin Media Relations Investor Relations mediateam@allstate.com invrel@allstate.com Allstate Reports Excellent Operating Results NORTHBROOK, Ill., August 5, 2026 – The Allstate Corporation (NYSE: ALL) today report
How this was made
The 30-second read
Why it matters
Traders can update models for underwriting profitability (combined ratio), earnings power (net income and adjusted EPS), and capital return (repurchases) based on the newly reported quarter.
Market read
The filing contains fresh quarter-level earnings and underwriting metrics, which are typically used to reprice near-term expectations for P&C insurers.
What to watch
Catastrophe losses declined year over year, so investors may scrutinize whether the benefit is timing-related versus structural pricing gains.
Allstate Reports Excellent Operating Results
Second-quarter revenues increased 11.8%, net income applicable to common shareholders increased 55.9%, and adjusted net income increased 46.4%, supported by stronger underwriting income, lower catastrophe losses, policy growth, higher homeowners insurance average premiums and higher net investment income.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenues, three months ended June 30, 2026GAAP | $18,596 million | – | 11.8% |
| Net income applicable to common shareholders, three months ended June 30, 2026GAAP | $3,241 million | – | 55.9% |
| Net income applicable to common shareholders per diluted common share, three months ended June 30, 2026GAAP | $12.51 per diluted common share | – | 61.2% |
| Adjusted net income, three months ended June 30, 2026non-GAAP | $2,330 million | – | 46.4% |
| Adjusted net income per diluted common share, three months ended June 30, 2026non-GAAP | $8.99 per diluted common share | – | 51.3% |
| Return on Allstate common shareholders' equity, net income applicable to common shareholders, trailing twelve monthsGAAP | 49.1% | – | 19.5 |
| Return on Allstate common shareholders' equity, adjusted net income, trailing twelve monthsnon-GAAP | 44.2% | – | 15.6 |
| Common shares outstandingother | 253.5 million | – | (3.9)% |
| Book value per common shareGAAP | $123.38 | – | 49.7% |
| Total policies in forceother | 215,935 thousand | – | 3.8% |
| Consolidated revenues, six months ended June 30, 2026GAAP | $35,537 million | – | 7.4% |
| Net income applicable to common shareholders, six months ended June 30, 2026GAAP | $5,669 million | – | 114.3% |
| Net income applicable to common shareholders per diluted common share, six months ended June 30, 2026GAAP | $21.73 per diluted common share | – | 120.6% |
| Adjusted net income, six months ended June 30, 2026non-GAAP | $5,127 million | – | 101.9% |
| Adjusted net income per diluted common share, six months ended June 30, 2026non-GAAP | $19.65 per diluted common share | – | 107.7% |
| Property-Liability premiums written, three months ended June 30, 2026other | $15,431 million | – | 2.6% |
| Property-Liability premiums earned, three months ended June 30, 2026other | $14,918 million | – | 4.0% |
| Property-Liability recorded combined ratio, three months ended June 30, 2026other | 86.6 | – | (4.5) |
| Property-Liability underlying combined ratio, three months ended June 30, 2026non-GAAP | 79.4 | – | (0.1) |
| Property-Liability catastrophe losses, three months ended June 30, 2026other | $1,722 million | – | (13.5)% |
| Property-Liability underwriting income, three months ended June 30, 2026other | $2,006 million | – | 56.7% |
| Property-Liability policies in forceother | 38,897 thousand | – | 2.6% |
| Allstate Protection Auto underwriting income, three months ended June 30, 2026other | $1,606 million | – | 20.7% |
| Allstate Protection Auto recorded combined ratio, three months ended June 30, 2026other | 83.3 | – | (2.7) |
| Allstate Protection Auto underlying combined ratio, three months ended June 30, 2026non-GAAP | 87.6 | – | (0.2) |
| Allstate Protection Auto policies in forceother | 25,951 thousand | – | 2.8% |
| Allstate Protection Homeowners underwriting income (loss), three months ended June 30, 2026other | $226 million | – | NM |
| Allstate Protection Homeowners recorded combined ratio, three months ended June 30, 2026other | 94.6 | – | (7.4) |
| Allstate Protection Homeowners catastrophe losses, three months ended June 30, 2026other | $1,408 million | – | (12.8)% |
| Allstate Protection Homeowners underlying combined ratio, three months ended June 30, 2026non-GAAP | 61.5 | – | 2.9 |
| Allstate Protection Homeowners policies in forceother | 7,819 thousand | – | 2.9% |
| Protection Services adjusted net income (loss), three months ended June 30, 2026non-GAAP | $53 million | – | $(7) million |
| Net investment income, second quarter of 2026other | $1.0 billion | – | increased by $255 million |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Property-LiabilityPolicy in force growth and higher homeowners insurance average premiums. | $14,918 million premiums earned | – | 4.0% |
| Allstate Protection AutoExpanded distribution and increased customer value supported strong profitability and policy growth. | $9,644 million premiums earned | – | 1.2% |
| Allstate Protection HomeownersHigher average premiums and policy in force growth. | $4,201 million premiums earned | – | 11.4% |
| Protection ServicesContinued Protection Plans growth. | $935 million | – | 7.8% |
| Protection PlansStrong international and domestic growth. | $615 million | – | 9.2% |
| RoadsideIncreased bundling with Allstate-branded Affordable, Simple, Connected auto insurance products and new partnerships. | $66 million | – | 17.9% |
| Dealer ServicesRevenue was relatively flat compared to the prior year quarter. | $147 million | – | (0.7)% |
| Identity ProtectionThe filing did not provide a driver for the revenue decrease. | $40 million | – | (2.4)% |
| ArityHigher lead generation advertising sales. | $67 million | – | 13.6% |
Capital returns
- Share repurchases were increased to $1.0 billion for the quarter.
- Strong cash returns to shareholders were $3.5 billion, or 6.7% of market capitalization, over the last year.
What drove it
- Consolidated revenues increased to $18.6 billion reflecting increased policies in force, higher average homeowners insurance prices and strong investment results.
- Property-Liability underwriting income increased to $2.0 billion, while catastrophe losses declined to $1,722 million.
- Property-Liability recorded combined ratio improved to 86.6 from 91.1, driven by lower catastrophe losses and more favorable prior year reserve releases, partially offset by higher legal expenses.
- Auto new business increased 8.8%, reflecting affordability initiatives, expanded distribution, increased marketing and new products.
- Allstate brand homeowners insurance average gross written premium increased 5.8%, reflecting rate increases and higher home replacement costs.
- Protection Plans revenue growth was supported by expanded distribution relationships and product offerings.
Concerns
- Higher legal expenses partially offset the improvement in the Property-Liability recorded combined ratio.
- The homeowners underlying combined ratio increased 2.9 points to 61.5, reflecting higher loss costs.
- Protection Services adjusted net income decreased by $7 million, primarily due to higher Protection Plans claim costs.
- Protection Plans adjusted net income decreased by $9 million, primarily reflecting lower margins on major appliances.
- Identity Protection revenue decreased 2.4% compared to the prior year quarter.
- Arity reported an adjusted net loss of $7 million.
What to watch
- The durability of auto policy growth, including the reported 8.8% increase in new business.
- Homeowners loss costs and the underlying combined ratio after the reported 2.9-point increase.
- Catastrophe losses, which were $1,722 million for Property-Liability and $1,408 million for homeowners in the quarter.
- The pace of Protection Plans revenue growth and whether claim costs and major-appliance margins improve.
- Investment-income contributions from market-based and performance-based investments.
- Further capital returns following $1.0 billion of quarterly share repurchases.
Balance sheet and cash flow
- Allstate Investments manages a $87.8 billion portfolio.
- Net investment income was $1.0 billion in the second quarter of 2026 and increased by $255 million from the prior year quarter.
- Book value per common share was $123.38, compared to $82.40 in the prior year quarter.
Analysis
Allstate reported a strong second quarter, with consolidated revenues of $18,596 million, up 11.8%, and net income applicable to common shareholders of $3,241 million, up 55.9%. Adjusted net income increased 46.4% to $2,330 million, or $8.99 per diluted common share. The company also reported trailing-twelve-month return on common shareholders' equity of 49.1% and adjusted net income return on equity of 44.2%.
Property-Liability underwriting was the central earnings driver. Earned premiums increased 4.0% to $14,918 million and underwriting income increased 56.7% to $2,006 million. The recorded combined ratio improved 4.5 points to 86.6, driven by lower catastrophe losses and more favorable prior year reserve releases, though higher legal expenses were a partial offset. Catastrophe losses declined 13.5% to $1,722 million.
Auto produced modest premium growth but improved underwriting results. Earned premiums increased 1.2% to $9,644 million, underwriting income increased 20.7% to $1,606 million, and the recorded combined ratio improved 2.7 points to 83.3. Auto policies in force increased 2.8%, while new business increased 8.8%. Homeowners showed stronger premium expansion, with earned premiums up 11.4% to $4,201 million and underwriting income of $226 million compared with an underwriting loss of $76 million in the prior-year quarter. Its underlying combined ratio nevertheless rose 2.9 points to 61.5 because of higher loss costs.
Protection Services revenue increased 7.8% to $935 million, led by 9.2% growth in Protection Plans and 17.9% growth in Roadside. Segment adjusted net income fell to $53 million from $60 million, however, as Protection Plans incurred higher claim costs and lower margins on major appliances. Identity Protection revenue declined 2.4%, while Arity remained loss-making despite 13.6% revenue growth.
Capital allocation remained active. Share repurchases were increased to $1.0 billion for the quarter, and cash returns to shareholders were $3.5 billion, or 6.7% of market capitalization, over the last year. The company also cited a $87.8 billion investment portfolio, with net investment income of $1.0 billion, up by $255 million from the prior-year quarter. No forward guidance was included in the provided filing text.
Management, verbatim
Allstate delivered strong operating and financial results in the second quarter of 2026, while executing our strategic growth plans.
Tom Wilson, leads The Allstate Corporation
Revenues increased to $18.6 billion reflecting increased policies in force, higher average homeowners insurance prices and strong investment results. Net income was $3.2 billion and adjusted net income* was $2.3 billion, or $8.99 per diluted share.
Tom Wilson, leads The Allstate Corporation
Allstate creates shareholder value through operational excellence, sustainable growth and capital generation.
Tom Wilson, leads The Allstate Corporation
Not in the filing
stated, not guessed- Forward guidance for revenue, expenses, tax rate, earnings, capital returns or other metrics was not provided in the supplied text.
- Previous-release outlook was not provided.
- Operating cash flow was not provided in the supplied text.
- Free cash flow was not provided in the supplied text.
- Cash and total debt balances were not provided in the supplied text.
- Dividend declaration or dividend amount was not provided in the supplied text.
- The supplied filing text is truncated during the Allstate Investment Results table; detailed investment metrics and their prior-year comparisons after that point are unavailable.
- Property-Liability, Auto, Homeowners and Protection Services reported six-month metrics not separately enumerated in key_metrics where not central to the second-quarter earnings read.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 covering Allstate’s Q2 2026 operating results and financial condition.
Ticker impact
Allstate’s 8-K reports Q2 2026 results, including revenues of $18.6B, net income of $3.2B, and a lower combined ratio of 86.6.
Likely positive bias for the stock versus prior expectations, with follow-through dependent on whether underwriting and catastrophe trends persist.
The filing provides multiple directionally favorable datapoints: higher net income and adjusted EPS, improved recorded combined ratio, and increased quarterly share repurchases to $1.0B.
Market effects
Improving property-liability underwriting metrics and catastrophe losses can reinforce sector expectations for pricing discipline and reserve development.
No specific regional market shock is disclosed beyond homeowners and auto policy growth.
Limited direct global impact; results are primarily US P&C underwriting and investment income.
Counterpoint
The improvement is partly driven by prior-year reserve releases and favorable development, which may not repeat in subsequent quarters.
Key entities
- companyAllstate Corporation
Reports Q2 2026 revenues, net income, underwriting results, and increased share repurchases in an 8-K.
- personTom Wilson
Executive quoted on operating performance, strategic growth, and capital generation.
