Why Is Allstate (ALL) Down 1.7% Since Last Earnings Report?

Core Viewpoint - Allstate's recent earnings report shows strong performance in Q4 2025, with adjusted net income significantly exceeding estimates, indicating potential for future growth despite recent share price underperformance [2][16]. Financial Performance - Q4 2025 adjusted net income was $14.31 per share, surpassing the Zacks Consensus Estimate by 45.7% and increasing 86.6% year over year [2]. - Operating revenues reached $17.3 billion, a 3.4% year-over-year growth, although it fell short of consensus estimates by 1.4% [2]. - Property and casualty insurance premiums rose 6.3% year over year to $15.5 billion, contributing to the overall revenue growth [4][7]. - Net investment income increased by 7.1% year over year to $892 million, exceeding estimates [4]. - Total costs and expenses decreased by 11.6% year over year to $12.4 billion, driven by lower claims and operating costs [5]. Segment Performance - The Property-Liability segment earned premiums of $14.8 billion, a 6.1% increase year over year, although it missed estimates [7]. - Underwriting income in the Property-Liability segment more than doubled to $4 billion, with an improved combined ratio of 76.6% [7]. - The Protection Services segment's revenues grew 3.1% year over year to $917 million, but also fell short of estimates [8]. Financial Position - As of December 31, 2025, Allstate had total assets of $119.8 billion, a 7.3% increase from the previous year, and total equity climbed 43.2% to $30.6 billion [9]. - The company reported a cash balance of $678 million, down 3.7% from the end of 2024 [9]. - Book value per common share increased by 49.9% year over year to $108.45 [10]. Capital Deployment - In 2025, Allstate returned over $2.2 billion to shareholders through share buybacks and dividends [11]. - A new share repurchase program of $4 billion has been authorized, set to begin after the current program concludes [11]. - A quarterly dividend increase of 8% was approved, raising the dividend to $1.08 per share [12]. Overall Outlook - Estimates for Allstate have been trending upward, with a Zacks Rank of 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [16].