Aallstate(ALL) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Highlights Consolidated Highlights 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][5] - Total policies in force increased by 4.2% year-over-year to 208 million, primarily led by growth in Protection Plans[3][6] Segment Performance Property-Liability 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] Auto Insurance 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] Homeowners Insurance 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] Protection Services 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] Health and Benefits 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] - The sale of the Group Health business closed on July 1, 2025, with an expected gain of approximately $500 million in Q3 2025[21] 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 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] - Total return on the investment portfolio was 1.4% for Q2 2025 and 5.4% for the trailing twelve months[26] Capital Management 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] - The quarterly dividend was increased by 9% to $1.00 per common share[23] - The company repurchased $341 million of common stock during the quarter[23] Financial Statements Balance Sheet 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] Income Statement 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 Adjusted Net Income Reconciliation 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 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 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 |