Allstate Q4 Earnings Beat Estimates on Property-Liability Unit Strength

Core Insights - The Allstate Corporation reported a fourth-quarter 2025 adjusted net income of $14.31 per share, exceeding the Zacks Consensus Estimate by 45.7% and showing an 86.6% year-over-year increase [1][9] - Operating revenues reached $17.3 billion, reflecting a 3.4% year-over-year growth, although it fell short of the consensus estimate by 1.4% [1][2] Financial Performance - Property and casualty insurance premiums increased by 6.3% year over year to $15.5 billion, while net investment income rose 7.1% year over year to $892 million, surpassing the Zacks Consensus Estimate of $875 million [3][4] - Total costs and expenses decreased by 11.6% year over year to $12.4 billion, attributed to lower claims and operating costs, with catastrophe losses dropping 49% year over year to $209 million [4][9] - The pretax income doubled year over year to $4.9 billion [4] Segment Performance - The Property-Liability segment earned premiums of $14.8 billion, a 6.1% year-over-year increase, although it missed the consensus estimate [6] - Underwriting income in the Property-Liability unit more than doubled year over year to $4 billion, with an improved combined ratio of 76.6% [6][9] - The Protection Services segment's revenues grew 3.1% year over year to $917 million, but also fell short of estimates [7] Capital Deployment - In 2025, Allstate returned over $2.2 billion to shareholders through share buybacks and dividends, with a new $4 billion share repurchase program authorized [10] - A quarterly dividend increase of 8% was approved, raising the dividend to $1.08 per share, payable on April 1, 2026 [11] Annual Overview - For the full year 2025, Allstate's revenues totaled $67.7 billion, a 5.6% increase year over year, with adjusted net income soaring 90.1% to $34.83 per share [12]