Allstate profit doubles to $3.8bn in Q4 2025

Core Insights - Allstate reported a significant increase in net income for Q4 2025, reaching $3.8 billion compared to $1.9 billion in Q4 2024, indicating strong financial performance [1] - The company's total revenue for Q4 2025 was $17.3 billion, reflecting a year-on-year growth of 5.1% [1] - Diluted earnings per share rose to $14.37 from $7.07 in the same quarter last year, showcasing improved profitability [1] Financial Performance - Total expenses decreased to $12.4 billion from $14.05 billion in the previous year, contributing to the increase in net income [1] - For the full year 2025, net income applicable to common shareholders was $10.2 billion, up from $4.6 billion in 2024, with annual total revenue at $67.7 billion, a 5.6% increase [4] Insurance Premiums and Underwriting - Property-Liability written premiums totaled $14.5 billion, a 5.9% increase year-on-year, driven by growth in auto and homeowners' insurance [2] - Underwriting income for the property-liability segment rose to $4 billion from $1.8 billion a year ago, while catastrophe losses decreased by 49% to $209 million [2] - Auto insurance written premiums grew by 3.1% to $9.34 billion, with earned premiums up 2.9% [2] Combined Ratio and Homeowners Insurance - The combined ratio for auto insurance improved to 80.8, a 12.7-point improvement from the previous year, attributed to higher earned premiums and lower loss costs [3] - Homeowners insurance written premiums increased by 13.4% to $4.1 billion, influenced by higher average premiums and policy growth [3] Protection Services and Shareholder Returns - Protection Services revenue reached $917 million, up 3.1% year-on-year, primarily due to gains in protection plans and roadside services [4] - The company returned over $2.2 billion to shareholders through repurchases and dividends during 2025 [4] Dividend and Share Repurchase Program - Allstate announced an increase in its dividend to $1.08 per share, payable on April 1, 2026, for shareholders on record as of March 2, 2026 [5] - A new share repurchase program valued at $4 billion will commence after the completion of the current $1.5 billion program [5] Customer Engagement and Cost Management - The company improved customer interactions and issued nearly $38 billion in support and financial resources during claims and unexpected events in 2025 [6] - Allstate proactively reduced premiums for 7.8 million auto and homeowners insurance customers by an average of 17% to address cost inflation [6]