Aallstate(US:ALL)2025-11-05 21:21Financial Performance - Consolidated net income applicable to common shareholders increased by $2.56 billion to $3.72 billion in Q3 2025, and increased by $3.71 billion to $6.36 billion in the first nine months of 2025 compared to the same periods in 2024, primarily due to higher underwriting income and gains on dispositions [239]. - Total revenues increased by 3.8% to $17.26 billion in Q3 2025 and increased by 5.8% to $50.34 billion in the first nine months of 2025 compared to the same periods in 2024, driven by higher auto and homeowners insurance policies in force and premium rate increases [242]. - Net investment income rose by $166 million to $949 million in Q3 2025 and increased by $298 million to $2.56 billion in the first nine months of 2025 compared to the same periods in 2024, primarily due to improved market-based and performance-based investment results [243]. - Underwriting income for Allstate Protection was $3.04 billion in Q3 2025, up from $555 million in Q3 2024, and totaled $4.69 billion in the first nine months of 2025 compared to $1.32 billion in the same period of 2024 [250]. - Premiums written increased by 6.3% to $15.63 billion in Q3 2025 and increased by 6.7% to $44.97 billion in the first nine months of 2025 compared to the same periods in 2024, reflecting higher auto and homeowners insurance policies in force [251]. Cost Management - Total costs and expenses decreased to $13.16 billion in Q3 2025 from $15.21 billion in Q3 2024, and totaled $43.71 billion in the first nine months of 2025 compared to $44.29 billion in the same period of 2024 [249]. - The expense ratio for Q3 2025 was 21.8%, an increase of 0.3 percentage points from 21.5% in Q3 2024 [298]. - Total underwriting expenses rose by $224 million or 7.6% to $3,173 million in Q3 2025 compared to Q3 2024 [298]. Investment Performance - Total investments reached $82.33 billion as of September 30, 2025, up from $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows [314]. - Fixed income securities totaled $57.19 billion as of September 30, 2025, an increase from $52.75 billion as of December 31, 2024 [320]. - The company reported a net investment income of $2,557 million for the first nine months of 2025, an increase of 13.2% or $298 million compared to the same period in 2024 [337]. - The company’s total equity securities reached a fair value of $5,338 million as of September 30, 2025, up from $4,463 million at the end of 2024 [336]. Underwriting and Claims - The loss ratio for the third quarter of 2025 improved to 58.3%, compared to 74.9% in the same quarter of 2024, indicating better claims management [262]. - The combined ratio for the third quarter of 2025 was 80.1%, a notable improvement from 96.4% in the third quarter of 2024, reflecting enhanced underwriting performance [262]. - Catastrophe losses for the third quarter of 2025 were $558 million, down from $1.70 billion in the same period of 2024, contributing to improved underwriting results [264]. - The auto loss ratio decreased by 11.3 points to 60.6% in Q3 2025 compared to Q3 2024, driven by increased earned premiums and lower claim frequency [279]. Shareholder Returns - The company repurchased 4.0 million common shares for $805 million during the first nine months of 2025, representing 1.5% of total common shares outstanding at the end of 2024 [350]. - The company paid dividends totaling $773 million in the first nine months of 2025, with a maximum estimated dividend capacity of $3.95 billion through February 2026 [359]. Risk Management - Key risks include actual claim costs exceeding reserves and unexpected increases in claim frequency or severity [364]. - The company emphasizes the importance of managing risks related to cybersecurity and information security controls [364]. - Regulatory limitations on rate increases and underwriting standards could affect financial performance [364]. - The availability and cost of reinsurance are critical factors for the company's operations [364].