Core Insights - The Allstate Corporation reported a strong second-quarter 2025 adjusted net income of $5.94 per share, exceeding the Zacks Consensus Estimate by 78.9% and significantly up from $1.61 a year ago [1][9] - Operating revenues increased by 6.1% year over year to $16.8 billion, although this figure fell short of the consensus estimate by 2.9% [1][2] Financial Performance - The growth in earnings was driven by an increase in premiums and improved investment income in the Property-Liability business, along with reduced costs and expenses [2] - Property and casualty insurance premiums rose by 7.8% year over year to $15 billion, while net investment income reached $754 million, a 5.9% increase year over year, although it missed the consensus estimate of $815.4 million [3][9] - Total costs and expenses decreased by 3% year over year to $14.8 billion, attributed to lower claims and benefits, leading to a pretax income of $2.7 billion, up from $430 million a year ago [4][9] Segment Performance - The Property-Liability segment's earned premiums increased by 7.5% year over year to $14.3 billion, despite falling short of the consensus estimate by 1.4%. Underwriting income improved to $1.3 billion from a loss of $145 million in the prior year [6] - The Protection Services segment reported revenues of $867 million, a 12.2% year-over-year increase, while adjusted net income rose to $60 million from $55 million [7] - The Allstate Health and Benefits segment saw a significant decline in premiums and contract charges by 50.4% year over year to $235 million due to the sale of the Employer Voluntary Benefits unit, with adjusted net income dropping 93.1% year over year [7] Financial Position - As of June 30, 2025, Allstate had a cash balance of $995 million, up from $704 million at the end of 2024. Total assets increased to $115.9 billion from $111.6 billion [8] - Debt remained stable at $8.1 billion, while total equity rose to $24 billion from $21.4 billion at the end of 2024. Book value per common share increased by 32.6% year over year to $82.40 [8]
Allstate Q2 Earnings Beat Estimates on Strong Premium Growth