Allstate Q3 Earnings Beat Estimates on Rising Investment Income

Core Insights - Allstate Corporation reported a third-quarter 2025 adjusted net income of $11.17 per share, exceeding the Zacks Consensus Estimate by 36.2% and significantly up from $3.91 a year ago [1][10] - Operating revenues increased by 3.8% year over year to $17 billion, although this fell short of the consensus estimate by 2% [1][2] Financial Performance - The growth in earnings was driven by increased premiums, improved investment income, and reduced costs and expenses, despite a decline in adjusted net income from the protection services unit [2] - Property and casualty insurance premiums rose by 6.4% year over year to $15.3 billion, while net investment income reached $949 million, a 21.2% increase year over year, surpassing the Zacks Consensus Estimate of $832 million [3] - Total costs and expenses decreased by 13.5% year over year to $13.2 billion, attributed to lower property and casualty insurance claims and catastrophe losses, which fell to $558 million from $1.7 billion a year ago [4][10] Segment Performance - The Property-Liability segment's premiums earned increased by 6.1% year over year to $14.5 billion, although it was 1.5% below the Zacks Consensus Estimate [6] - Underwriting income in this segment rose to $2.9 billion from $495 million in the prior-year quarter, with the underlying combined ratio improving by 450 basis points to 78.7% [6] - The Protection Services segment reported revenues of $902 million, a 9.7% year-over-year increase, but adjusted net income decreased to $46 million from $58 million a year ago [7] Financial Position - As of September 30, 2025, Allstate had a cash balance of $931 million, up from $704 million at the end of 2024, and total assets increased to $120.4 billion from $111.6 billion [8] - Total equity rose to $27.5 billion from $21.4 billion at the end of 2024, with a book value per common share of $95.95, reflecting a 36.4% year-over-year increase [8]