[Part I Financial Information](index=3&type=section&id=Part%20I%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Net income for Q2 and H1 2025 reached **$2.1 billion** and **$2.7 billion** respectively, driven by higher premiums and asset disposition gains Condensed Consolidated Statements of Operations (unaudited) | (In millions, except per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$16,633** | **$15,714** | **$33,085** | **$30,973** | | Property and casualty insurance premiums | $15,041 | $13,952 | $29,739 | $27,464 | | **Total costs and expenses** | **$14,820** | **$15,284** | **$30,553** | **$29,079** | | Gain on disposition of operations | $890 | $— | $890 | $— | | **Net income** | **$2,099** | **$347** | **$2,695** | **$1,545** | | **Net income applicable to common shareholders** | **$2,079** | **$301** | **$2,645** | **$1,490** | | **Net income per common share - Diluted** | **$7.76** | **$1.13** | **$9.85** | **$5.58** | Condensed Consolidated Statements of Financial Position (unaudited) | ($ in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total investments** | **$77,437** | **$72,610** | | **Total assets** | **$115,894** | **$111,617** | | **Total liabilities** | **$91,889** | **$90,250** | | **Total Allstate shareholders' equity** | **$24,019** | **$21,442** | | **Total liabilities and equity** | **$115,894** | **$111,617** | Condensed Consolidated Statements of Cash Flows (unaudited) | ($ in millions) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$3,837** | **$4,025** | | **Net cash used in investing activities** | **($2,501)** | **($3,896)** | | Proceeds from disposition of operations, net of cash transferred | $1,885 | $— | | **Net cash used in financing activities** | **($954)** | **($252)** | | Treasury stock purchases | ($439) | $— | | **Net increase (decrease) in cash** | **$382** | **($123)** | [Note 3: Dispositions](index=10&type=section&id=Note%203%3A%20Dispositions) The company completed the sale of its EVB business for **$1.9 billion**, generating a **$643 million** after-tax gain, and also sold its group health business - On April 1, 2025, the company closed the sale of its employer voluntary benefits (EVB) business for **$1.9 billion** in cash, recording a gain of **$890 million** (**$643 million** after-tax) in Q2 2025[28](index=28&type=chunk) - On January 30, 2025, an agreement was reached to sell the group health business for approximately **$1.25 billion**. The transaction closed on July 1, 2025, and a gain is expected in Q3 2025[31](index=31&type=chunk) [Note 4: Reportable Segments](index=11&type=section&id=Note%204%3A%20Reportable%20Segments) Segment performance improved significantly, with Allstate Protection's underwriting income reaching **$1.28 billion**, while Health and Benefits' adjusted net income declined due to dispositions Segment Financial Performance (Q2 2025 vs Q2 2024) | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Underwriting income (loss)** | | | | Allstate Protection | $1,283 | $(142) | | Run-off Property-Liability | $(3) | $(3) | | **Adjusted net income (loss), after-tax** | | | | Protection Services | $60 | $55 | | Allstate Health and Benefits | $4 | $58 | Property-Liability Insurance Premiums by Line (Q2 2025 vs Q2 2024) | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Auto | $9,528 | $9,079 | | Homeowners | $3,771 | $3,255 | | Other personal lines | $779 | $701 | [Note 5: Investments](index=16&type=section&id=Note%205%3A%20Investments) The investment portfolio grew to **$77.4 billion**, with net investment income rising to **$754 million** in Q2 2025, despite **$144 million** in net investment losses Investment Portfolio Composition | ($ in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Fixed income securities, at fair value | $54,435 | $52,747 | | Equity securities, at fair value | $2,397 | $4,463 | | Limited partnership interests | $9,194 | $9,255 | | Short-term investments, at fair value | $9,640 | $4,537 | | **Total** | **$77,437** | **$72,610** | Net Investment Income (Q2 2025 vs Q2 2024) | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Fixed income securities | $602 | $571 | | Limited partnership interests | $74 | $103 | | Short-term investments | $97 | $62 | | **Total Net investment income** | **$754** | **$712** | - Net investment losses were **$144 million** in Q2 2025, primarily driven by losses on sales of fixed income securities of **$245 million**, partially offset by valuation gains on equity investments of **$170 million**[48](index=48&type=chunk) [Note 9: Reserve for Property and Casualty Insurance Claims and Claims Expense](index=37&type=section&id=Note%209%3A%20Reserve%20for%20Property%20and%20Casualty%20Insurance%20Claims%20and%20Claims%20Expense) Net P&C claims reserve increased to **$34.9 billion**, with H1 2025 incurred claims at **$21.1 billion**, including **$4.19 billion** in catastrophe losses, offset by **$621 million** in favorable reestimates Rollforward of Net P&C Claims Reserve (Six months ended June 30, 2025) | ($ in millions) | Amount | | :--- | :--- | | Net balance as of January 1 | $33,315 | | Total incurred claims and claims expense | $21,064 | | *Current year* | *$21,685* | | *Prior years (favorable reestimate)* | *($621)* | | Total paid claims and claims expense | ($19,523) | | **Net balance as of June 30** | **$34,856** | - Catastrophe losses for the first six months of 2025 were **$4.19 billion**, a significant increase from **$2.85 billion** in the same period of 2024[153](index=153&type=chunk) - Favorable prior year non-catastrophe reserve reestimates were **$378 million** for Q2 2025 and **$616 million** for the first six months of 2025, primarily driven by the auto insurance line[41](index=41&type=chunk)[156](index=156&type=chunk) [Note 12: Guarantees and Contingent Liabilities](index=41&type=section&id=Note%2012%3A%20Guarantees%20and%20Contingent%20Liabilities) The company faces various legal proceedings, with an estimated aggregate reasonably possible loss between zero and **$72 million** pre-tax, including class actions - The company estimates the aggregate range of reasonably possible loss for certain disclosed legal matters, in excess of amounts already accrued, is between zero and **$72 million**, pre-tax[182](index=182&type=chunk) - Allstate is defending several putative class actions challenging its depreciation practices in homeowner claims, its valuation methods for total loss auto claims, and its handling of uninsured/underinsured motorist coverage in Arizona[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - The Department of Justice filed a civil suit against National General entities alleging violations related to its collateral protection insurance program[191](index=191&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights significant financial improvement driven by the 'Transformative Growth' strategy, including underwriting income turnaround and strategic asset dispositions [Highlights](index=50&type=section&id=Highlights) Consolidated net income applicable to common shareholders surged to **$2.08 billion** in Q2 2025, driven by higher premiums and the EVB sale gain, with total revenues reaching **$16.63 billion** - Consolidated net income applicable to common shareholders increased by **$1.78 billion** to **$2.08 billion** in Q2 2025 compared to Q2 2024[223](index=223&type=chunk) - Total revenues for Q2 2025 increased by **$919 million** to **$16.63 billion**, primarily due to higher homeowners and auto insurance policies in force and premium rate increases[223](index=223&type=chunk) - Book value per diluted common share was **$82.40** as of June 30, 2025, a **32.6%** increase from June 30, 2024[225](index=225&type=chunk) [Property-Liability Operations](index=53&type=section&id=Property-Liability%20Operations) The Property-Liability business saw a significant turnaround, with the combined ratio improving to **91.1%** in Q2 2025 from **101.1%**, driven by a lower loss ratio and premium increases Property-Liability Underwriting Results (Q2 2025 vs Q2 2024) | ($ in millions, except ratios) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Premiums written | $15,047 | $14,279 | | Premiums earned | $14,346 | $13,339 | | Underwriting income (loss) | $1,280 | $(145) | | **Combined ratio** | **91.1%** | **101.1%** | | Loss ratio | 70.3% | 79.8% | | Expense ratio | 20.8% | 21.3% | | Effect of catastrophe losses on combined ratio | 13.9 pts | 15.9 pts | [Allstate Protection](index=55&type=section&id=Allstate%20Protection) The Allstate Protection segment generated **$1.28 billion** in underwriting income in Q2 2025, a significant recovery, driven by improved auto and homeowners combined ratios due to rate increases - Auto insurance premiums written increased **2.7%** in Q2 2025, driven by rate increases and a **24.8%** rise in new issued applications[250](index=250&type=chunk)[251](index=251&type=chunk) - Homeowners insurance premiums written grew **14.3%** in Q2 2025, reflecting higher average premiums from rate increases and a **2.3%** growth in policies in force[251](index=251&type=chunk)[255](index=255&type=chunk) - Catastrophe losses for the segment were **$1.99 billion** in Q2 2025, down from **$2.12 billion** in Q2 2024. Wind/hail events were the primary cause of losses[244](index=244&type=chunk)[272](index=272&type=chunk) - Favorable prior year reserve reestimates for the segment were **$372 million** in Q2 2025, mainly from personal auto lines[279](index=279&type=chunk)[280](index=280&type=chunk) [Run-off Property-Liability](index=63&type=section&id=Run-off%20Property-Liability) The Run-off Property-Liability segment reported a stable underwriting loss of **$3 million** for Q2 2025, with net reserves for legacy claims decreasing slightly to **$1.36 billion** Run-off Net Reserves | ($ in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Asbestos claims | $738 | $774 | | Environmental claims | $245 | $259 | | Other run-off claims | $377 | $381 | | **Total Net reserves** | **$1,360** | **$1,414** | [Protection Services](index=65&type=section&id=Protection%20Services) The Protection Services segment reported adjusted net income of **$60 million** in Q2 2025, driven by Allstate Protection Plans' increased premiums, with total policies in force growing **7.4%** Protection Services Financial Summary (Q2 2025 vs Q2 2024) | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Premiums written | $733 | $676 | | Revenues | $868 | $772 | | Adjusted net income | $60 | $55 | | *Allstate Protection Plans* | *$51* | *$41* | - Policies in force increased by **7.4%** to **169.7 million** as of June 30, 2025, mainly due to growth at Allstate Protection Plans[290](index=290&type=chunk)[291](index=291&type=chunk) [Allstate Health and Benefits](index=66&type=section&id=Allstate%20Health%20and%20Benefits) The Allstate Health and Benefits segment is transforming with the completed sale of its EVB business and pending group health sale, leading to adjusted net income falling to **$4 million** in Q2 2025 - The sale of the employer voluntary benefits (EVB) business closed on April 1, 2025. The sale of the group health business closed on July 1, 2025[295](index=295&type=chunk)[296](index=296&type=chunk) - Adjusted net income for Q2 2025 was **$4 million**, down from **$58 million** in Q2 2024. Excluding the sold EVB business, adjusted net income decreased by **$26 million**, primarily due to higher benefit utilization in group and individual health[233](index=233&type=chunk)[300](index=300&type=chunk) - A goodwill impairment test for the retained individual health business did not result in an impairment, but the excess of fair value over carrying amount was less than **10%**, indicating potential future risk[298](index=298&type=chunk) [Investments](index=68&type=section&id=Investments) The investment portfolio grew to **$77.4 billion**, with a Q2 2025 risk reduction strategy implemented, resulting in net investment income of **$754 million** despite **$144 million** in net losses from repositioning - In Q2 2025, the company lowered its allocation to investment risk, reducing public equity securities and high-yield bonds and shortening the fixed income portfolio duration[307](index=307&type=chunk) Net Investment Income by Strategy (Q2 2025 vs Q2 2024) | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Market-based | $733 | $667 | | Performance-based | $90 | $121 | | **Investment income, before expense** | **$823** | **$788** | - Net losses on investments and derivatives were **$144 million** in Q2 2025, primarily due to losses on sales of fixed income securities (**$245 million**) as part of the portfolio repositioning[330](index=330&type=chunk)[331](index=331&type=chunk) - As of June 30, 2025, **92.3%** of the consolidated fixed income securities portfolio was rated investment grade[312](index=312&type=chunk) [Capital Resources and Liquidity](index=77&type=section&id=Capital%20Resources%20and%20Liquidity) Total capital resources grew to **$32.1 billion**, improving the debt-to-capital ratio to **25.2%**, driven by strong net income and unrealized gains, while the company returned capital to shareholders and maintained strong liquidity Capital Resources Summary | ($ in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Allstate shareholders' equity | $24,019 | $21,442 | | Debt | $8,087 | $8,085 | | **Total capital resources** | **$32,106** | **$29,527** | | Ratio of debt to capital resources | 25.2% | 27.4% | - The Board authorized a new **$1.50 billion** share repurchase program in February 2025. As of June 30, 2025, **$1.06 billion** remained available under this program[338](index=338&type=chunk) - In May 2025, Moody's affirmed AIC's financial strength rating of **Aa3** and changed the outlook from negative to stable. S&P affirmed its **A+** rating with a stable outlook[341](index=341&type=chunk) - The parent holding company has deployable assets of **$3.98 billion** as of June 30, 2025, which will be further increased by proceeds from the group health disposition in Q3 2025[347](index=347&type=chunk) [Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures are effective in providing reasonable assurance that material information is properly disclosed[356](index=356&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[357](index=357&type=chunk) [Part II Other Information](index=80&type=section&id=Part%20II%20Other%20Information) [Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the detailed discussion of legal and regulatory matters from Note 12 of the financial statements, covering various lawsuits and inquiries - Information regarding legal proceedings is incorporated by reference from the discussion under "Regulation and compliance" and "Legal and regulatory proceedings and inquiries" in Note 12 of the condensed consolidated financial statements[359](index=359&type=chunk) [Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) The company reported no material changes to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes in the company's risk factors from those disclosed in the 2024 Annual Report on Form 10-K[360](index=360&type=chunk) [Issuer Purchases of Equity Securities](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During Q2 2025, Allstate repurchased **1.81 million** shares at an average price of **$199.46**, as part of a **$1.50 billion** program with **$1.06 billion** remaining Issuer Purchases of Equity Securities (Q2 2025) | Period | Total number of shares purchased | Average price paid per share | Maximum approximate dollar value that may yet be purchased under the plans or programs ($ in billions) | | :--- | :--- | :--- | :--- | | April 2025 | 592,338 | $193.89 | | | May 2025 | 662,738 | $204.12 | | | June 2025 | 555,570 | $199.85 | | | **Total** | **1,810,646** | **$199.46** | **$1.06 billion** | [Other Information](index=80&type=section&id=Item%205.%20Other%20Information) Two executives, Suren Gupta and Thomas J. Wilson, adopted Rule 10b5-1 trading plans for the potential sale of company common stock during the quarter - On June 9, 2025, Suren Gupta adopted a Rule 10b5-1 trading plan for the sale of up to **48,400** shares of common stock[362](index=362&type=chunk) - On June 27, 2025, Thomas J. Wilson adopted a Rule 10b5-1 trading plan for the sale of up to **201,684** shares of common stock[363](index=363&type=chunk) [Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, officer certifications, and XBRL data files - The exhibits filed with this Form 10-Q include the Restated Certificate of Incorporation, Amended and Restated Bylaws, officer certifications, and Inline XBRL documents[367](index=367&type=chunk)

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Results) [Consolidated Highlights](index=1&type=section&id=Consolidated%20Highlights) The company reported strong Q2 2025 results with $16.6 billion in revenue and $2.1 billion in net income Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | % / pts Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $16.6 billion | $15.7 billion | 5.8% | | **Net Income** | $2.1 billion | $301 million | NM | | **Adjusted Net Income*** | $1.6 billion | $429 million | NM | | **Adjusted Net Income per Diluted Share*** | $5.94 | $1.61 | NM | | **Adjusted Net Income ROE* (TTM)** | 28.6% | 21.6% | 7.0 pts | - Net income includes a **$643 million after-tax gain** from the sale of the Employer Voluntary Benefits business[3](index=3&type=chunk)[5](index=5&type=chunk) - Total policies in force **increased by 4.2%** year-over-year to 208 million, primarily led by growth in Protection Plans[3](index=3&type=chunk)[6](index=6&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) [Property-Liability](index=2&type=section&id=Property-Liability%20Results) The Property-Liability segment's underwriting income swung to a $1.3 billion profit on premium growth Property-Liability Q2 Performance | Metric | Q2 2025 | Q2 2024 | % / pts Change | | :--- | :--- | :--- | :--- | | **Premiums Earned** | $14,346 M | $13,339 M | 7.5% | | **Underwriting Income (Loss)** | $1,280 M | $(145) M | NM | | **Recorded Combined Ratio** | 91.1 | 101.1 | (10.0) pts | | **Underlying Combined Ratio*** | 79.5 | 85.3 | (5.8) pts | - Policies in force **grew by 0.6%**, as growth in personal property-liability was partially offset by a 31.3% decline in commercial policies[8](index=8&type=chunk) [Auto Insurance](index=4&type=section&id=Allstate%20Protection%20Auto%20Results) Auto insurance delivered strong underwriting income of $1.3 billion, driven by higher premiums Auto Insurance Q2 Results | Metric | Q2 2025 | Q2 2024 | % / pts Change | | :--- | :--- | :--- | :--- | | **Premiums Written** | $9,533 M | $9,284 M | 2.7% | | **Underwriting Income** | $1,331 M | $370 M | NM | | **Recorded Combined Ratio** | 86.0 | 95.9 | (9.9) pts | | **Policies in Force (thousands)** | 25,243 | 25,124 | 0.5% | - Favorable prior year non-catastrophe reserve reestimates of **$415 million** had a 4.3 point positive impact on the combined ratio[13](index=13&type=chunk) [Homeowners Insurance](index=4&type=section&id=Allstate%20Protection%20Homeowners%20Results) Homeowners insurance reduced its underwriting loss to $76 million despite high catastrophe losses Homeowners Insurance Q2 Results | Metric | Q2 2025 | Q2 2024 | % / pts Change | | :--- | :--- | :--- | :--- | | **Premiums Written** | $4,395 M | $3,845 M | 14.3% | | **Underwriting (Loss)** | $(76) M | $(375) M | (79.7)% | | **Recorded Combined Ratio** | 102.0 | 111.5 | (9.5) pts | | **Catastrophe Losses** | $1,614 M | $1,616 M | (0.1)% | - The improvement in the recorded combined ratio was primarily due to **higher average premiums** and favorable underlying trends[15](index=15&type=chunk) [Protection Services](index=5&type=section&id=Protection%20Services%20Results) The Protection Services segment continued its growth with revenues increasing 12.2% to $867 million Protection Services Q2 Revenue Breakdown | Business Line | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$867 M** | **$773 M** | **12.2%** | | Allstate Protection Plans | $563 M | $483 M | 16.6% | | Allstate Dealer Services | $148 M | $148 M | 0.0% | | Allstate Roadside | $56 M | $51 M | 9.8% | | Arity | $59 M | $52 M | 13.5% | | Allstate Identity Protection | $41 M | $39 M | 5.1% | - Allstate Protection Plans' revenue growth was driven by **expanded distribution relationships** and strong international performance[16](index=16&type=chunk) [Health and Benefits](index=7&type=section&id=Allstate%20Health%20and%20Benefits) This segment's results reflect the strategic divestiture of its Employer Voluntary Benefits business - The sale of the Employer Voluntary Benefits business generated a **$643 million after-tax gain** in Q2 2025[21](index=21&type=chunk) - The sale of the Group Health business closed on July 1, 2025, with an expected gain of approximately **$500 million** in Q3 2025[21](index=21&type=chunk) Health and Benefits Q2 Performance | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Premiums & Contract Charges** | $235 M | $474 M | (50.4)% | | **Adjusted Net Income** | $4 M | $58 M | (93.1)% | [Investment Portfolio](index=7&type=section&id=Allstate%20Investment%20Results) The $77.4 billion portfolio generated net investment income of $754 million, a slight year-over-year increase Q2 Investment Income Breakdown | Income Type | Q2 2025 | Q2 2024 | $ Change | | :--- | :--- | :--- | :--- | | **Net Investment Income** | **$754 M** | **$712 M** | **$42 M** | | Market-based | $733 M | $667 M | $66 M | | Performance-based | $79 M | $107 M | $(28) M | - Investment risks were lowered during the quarter by **reducing public equity and high-yield bond allocations**[26](index=26&type=chunk) - Total return on the investment portfolio was **1.4% for Q2 2025** and 5.4% for the trailing twelve months[26](index=26&type=chunk) [Capital Management](index=8&type=section&id=Proactive%20Capital%20Management) Allstate demonstrated proactive capital management through dividends, share repurchases, and a strong ROE - Adjusted net income return on equity* was **28.6%** for the trailing twelve months[23](index=23&type=chunk) - The quarterly dividend was **increased by 9%** to $1.00 per common share[23](index=23&type=chunk) - The company **repurchased $341 million** of common stock during the quarter[23](index=23&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) [Balance Sheet](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets grew to $115.9 billion, and shareholders' equity increased to $24.0 billion Key Balance Sheet Items | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Investments** | $77,437 M | $72,610 M | | **Total Assets** | $115,894 M | $111,617 M | | **Total Liabilities** | $91,889 M | $90,250 M | | **Total Allstate Shareholders' Equity** | $24,019 M | $21,442 M | - Book value per common share was **$82.40** as of June 30, 2025, a 32.6% increase from a year prior[6](index=6&type=chunk) [Income Statement](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income applicable to common shareholders was $2.1 billion, or $7.76 per diluted share Q2 2025 Income Statement Highlights | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenues** | $16,633 M | $15,714 M | | **Total Costs and Expenses** | $14,820 M | $15,284 M | | **Gain on Disposition of Operations** | $890 M | $0 M | | **Net Income Applicable to Common Shareholders** | $2,079 M | $301 M | | **Diluted EPS** | $7.76 | $1.13 | [Non-GAAP Measures and Reconciliations](index=11&type=section&id=Definitions%20of%20Non-GAAP%20Measures) [Adjusted Net Income Reconciliation](index=11&type=section&id=Adjusted%20Net%20Income%20Reconciliation) GAAP Net Income of $2,079 million was reconciled to an Adjusted Net Income of $1,591 million Q2 2025 Adjusted Net Income Reconciliation ($ in millions) | Description | Amount | | :--- | :--- | | **Net income applicable to common shareholders (GAAP)** | **$2,079** | | Net (gains) losses on investments and derivatives | $144 | | Amortization of purchased intangibles | $57 | | Gain on disposition | $(893) | | Income tax expense (benefit) on adjustments | $204 | | **Adjusted net income (Non-GAAP)*** | **$1,591** | [Adjusted Net Income ROE Reconciliation](index=12&type=section&id=Adjusted%20Net%20Income%20Return%20on%20Equity%20Reconciliation) The trailing twelve-month adjusted net income ROE was 28.6%, compared to the GAAP ROE of 29.6% Trailing Twelve Months ROE vs. Adjusted ROE | Metric (For the twelve months ended June 30, 2025) | Value | | :--- | :--- | | Net Income Applicable to Common Shareholders | $5,705 M | | Return on Allstate Common Shareholders' Equity (GAAP) | 29.6% | | Adjusted Net Income* | $5,650 M | | **Adjusted Net Income Return on Equity (Non-GAAP)*** | **28.6%** | [Underlying Combined Ratio Reconciliation](index=13&type=section&id=Underlying%20Combined%20Ratio%20Reconciliation) The underlying combined ratio improved 5.8 points to 79.5, excluding catastrophe and other impacts Q2 2025 Property-Liability Combined Ratio Reconciliation | Description | Ratio | | :--- | :--- | | **Combined ratio (GAAP)** | **91.1** | | Effect of catastrophe losses | (13.9) | | Effect of prior year non-catastrophe reserve reestimates | 2.6 | | Effect of amortization of purchased intangibles | (0.3) | | **Underlying combined ratio (Non-GAAP)*** | **79.5** |

Core Insights - The Allstate Corporation is scheduled to report its Q2 2025 results on July 30, 2025, with earnings estimated at $3.36 per share and revenues at $17.16 billion [1] - The earnings estimate reflects a significant year-over-year increase of 108.7%, while revenue is projected to rise by 8.5% year-over-year [2] - For the full year 2025, Allstate's revenue is expected to reach $69.06 billion, indicating a 7.4% increase, with EPS projected at $18.33, showing a slight year-over-year increase [3] Earnings Projections - The second-quarter earnings estimate has seen four upward revisions and one downward revision in the past 60 days [2] - Allstate has a strong track record of exceeding earnings estimates, achieving an average surprise of 134.9% over the last four quarters [3] Earnings Whispers - The company is projected to report Q2 EPS of $3.36 and revenue of $17.16 billion, both showing strong year-over-year growth [7] - Auto underwriting income is expected to increase to $484.7 million, with an improved combined ratio of 94.99% [7][10] - Net investment income is anticipated to grow by 14.5% year-over-year, benefiting from higher-yielding fixed-income securities [8] Business Segment Performance - The adjusted net income from the Protection Services business is expected to grow by 14.7% year-over-year [9] - Homeowners' policies in force are projected to increase by 2.5% year-over-year [9] - The underwriting loss from Commercial Lines is estimated at $11.5 million, a significant improvement from $138 million a year ago [11] Cost and Expense Outlook - Total costs and expenses are projected to rise by more than 6% year-over-year due to increased operating costs and claims expenses, which may offset some positive gains [11] Peer Performance Comparison - Marsh & McLennan reported adjusted EPS of $2.72, exceeding estimates by 2.3%, driven by strong growth in Risk and Insurance Services [12] - AON's adjusted earnings of $3.49 per share surpassed estimates by 2.7%, benefiting from new business growth and solid retention rates [13] - AMERISAFE reported adjusted EPS of 53 cents, missing estimates by 3.6%, impacted by a decline in net investment income and elevated expenses [14]

Core Viewpoint - The article discusses the investment opportunities and risks associated with stocks held by U.S. Congress members, highlighting two ETFs that track Republican and Democratic members' stock holdings, respectively [5][6][36]. Group 1: ETFs Tracking Congressional Holdings - The Unusual Whales Subversive Republican Trading ETF (NYSE:GOP) has a management fee of 0.75% and its largest sector allocations are Technology (24.15%), Financials (16.32%), Industrials (13.96%), Energy (11.77%), and Healthcare (7.40%) [5]. - The Unusual Whales Subversive Democratic Trading ETF (NYSE:NANC) has a management fee of 0.74% and its largest sector allocations are Technology (39.46%), Communication Services (13.22%), Healthcare (11.18%), Consumer Discretionary (9.90%), Consumer Staples (8.79%), and Financials (8.55%) [6]. Group 2: Notable Stock Holdings - Major holdings in the Republican ETF include JPMorgan Chase (4.49%) and in the Democratic ETF include Nvidia (10.62%) and Microsoft (8.09%) [7][8]. - Stocks in these ETFs exhibit two characteristics: they are undervalued compared to fair value and they pay dividends [10]. Group 3: Tyson Foods - Tyson Foods, established in 1935, is the second-largest chicken and pork processor globally, with a dividend of $0.50 per share scheduled for September 12, yielding 3.67% [12][14]. - The company is expected to report a 20.6% growth in earnings per share (EPS) for the first nine months [16]. Group 4: Allstate - Allstate, an insurance company founded in 1931, will pay a dividend of $1 per share on October 1, with a yield of 2.03% [19][21]. - The company anticipates a 22.40% growth in EPS for the upcoming quarter [23]. Group 5: Fidelity National Information Services - Fidelity National Information Services, focused on fintech solutions, pays a quarterly dividend of $0.40 per share, yielding 1.96% [28][30]. - The company is optimistic about its financial outlook and is planning a $12 billion acquisition to enhance its focus and profitability [34].

Industry Overview - The Zacks Property and Casualty Insurance (P&C) industry is expected to benefit from improved pricing, prudent underwriting, and exposure growth despite an increase in catastrophic events [1] - The industry includes companies providing commercial and personal property insurance, casualty insurance products, and services, with premiums being the primary revenue source [3] - The industry is currently facing a decline in pricing after several years of increases, with three interest rate cuts last year and potential further cuts this year [2] Trends and Projections - Global commercial insurance rates fell by 4% in Q2, but personal auto insurance is projected to remain strong, supported by better investment returns and reduced claims [4] - Deloitte estimates gross premiums to grow sixfold to $722 billion by 2030, with China and North America accounting for over two-thirds of the total [4] - Swiss Re predicts premium growth of 5% in 2025 and 4% in 2026 [4] Catastrophe Impact - The industry is vulnerable to catastrophe events, which can negatively impact underwriting profits; the 2025 hurricane season is expected to be above normal with 23 named storms [5] - Global insured losses from natural disasters in the first half of 2025 are estimated to be at least $100 billion [5] - The combined ratio is expected to improve from 2023 to 98.5% in 2025 but may deteriorate to 99% in 2026 [5] Mergers and Acquisitions - Consolidation in the P&C industry is anticipated to continue as companies seek to diversify operations and gain market share [6] Technology Adoption - The industry is increasingly adopting technologies such as blockchain, artificial intelligence, and advanced analytics to enhance operations and reduce costs [8] - Insurtechs are emerging, focusing on the P&C insurance sector, with significant investments in technology expected to improve efficiency [8] Industry Performance - The Zacks Property and Casualty Insurance industry ranks 92, placing it in the top 38% of over 250 Zacks industries, indicating positive near-term prospects [9] - The industry has underperformed compared to its sector and the S&P 500, with a year-to-date increase of 4.7% compared to 9.8% for the sector and 6.9% for the S&P 500 [11] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 1.53X, compared to the S&P 500's 8.5X and the sector's 4.27X [13] Company Highlights - Progressive Corporation is a major auto insurer with a Zacks Rank 2, expected to see 23.4% year-over-year earnings growth in 2025 [17][18] - Berkshire Hathaway, with a Zacks Rank 3, continues to benefit from its diverse operations and is expected to see a 5% increase in earnings for 2026 [21][23] - Chubb Limited, also a Zacks Rank 3, is focusing on middle-market businesses and cyber insurance, with an expected 18.9% growth in earnings for 2026 [25][26] - Travelers Companies, carrying a Zacks Rank 3, is well-positioned for growth with a projected 20.5% increase in earnings for 2026 [29][30] - Allstate, the third-largest P&C insurer, is expected to see earnings growth of 0.1% in 2025 and 22% in 2026, supported by rate increases and strategic acquisitions [32][33]

Market Performance - The US stock market saw significant gains on July 23, with the Dow Jones Industrial Average rising by 507.85 points, or 1.14%, closing at 45010.29 points. The Nasdaq Composite increased by 127.33 points, or 0.61%, closing at 21020.02 points, marking its first close above the 21000-point threshold. The S&P 500 index rose by 49.29 points, or 0.78%, closing at 6358.91 points [1][3][4]. Trade Agreements - President Trump announced a trade agreement between the US and Japan, which has heightened market expectations for further trade agreements before the August 1 tariff deadline. The agreement includes a reduction of the reciprocal tariff rate from 25% to 15% and Japan's commitment to invest $550 billion in the US [2][6][7]. Sector Performance - In the S&P 500, nine out of eleven sectors experienced gains, with the healthcare and industrial sectors leading with increases of 2.03% and 1.75%, respectively. The utilities and consumer staples sectors saw declines of 0.79% and 0.07% [8]. - Major technology stocks mostly rose, with AMD increasing over 3%, and other companies like NVIDIA, Boeing, and TSMC rising over 2%. Financial stocks also saw gains, with Mizuho Financial up over 6% and UBS Group up over 3% [8]. Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 0.75%, with notable increases in stocks such as iQIYI, which rose over 4%, and Tiger Brokers, which increased over 3%. However, some stocks like NIO and Li Auto saw declines of over 1% [9].

Allstate (ALL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the ...

智通财经7月17日电，美国证券交易委员会（SEC）文件显示，好事达保险公司（Allstate）宣布6月巨灾 损失达6.19亿美元，环比下降20%。 ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, ...

Group 1 - The article highlights a promising investment opportunity in the preferred stocks and baby bonds of The Allstate Corporation (ALL), one of the largest insurance companies [1] - It invites active investors to join a free trial and engage in discussions about investment ideas in a chat room with experienced traders and investors [1] Group 2 - No specific financial data or performance metrics are provided in the articles, focusing instead on the potential of Allstate's financial instruments [2][3] - The articles emphasize that past performance does not guarantee future results, and no investment recommendations are made [3]