Core Viewpoint - Allstate's third-quarter earnings exceeded expectations, driven by growth in premiums and investment income, despite some challenges in its protection services unit [2][3]. Financial Performance - Adjusted net income for Q3 2025 was $11.17 per share, surpassing the Zacks Consensus Estimate by 36.2%, and significantly up from $3.91 a year ago [2]. - Operating revenues increased by 3.8% year over year to $17 billion, although this fell short of the consensus estimate by 2% [2]. - Total costs and expenses decreased by 13.5% year over year to $13.2 billion, attributed to lower insurance claims and catastrophe losses, which dropped to $558 million from $1.7 billion a year ago [5]. Segment Performance - Property and casualty insurance premiums rose by 6.4% year over year to $15.3 billion, while the Property-Liability segment's premiums earned increased by 6.1% to $14.5 billion [4][7]. - The Protection Services segment reported revenues of $902 million, a 9.7% increase year over year, but adjusted net income decreased to $46 million from $58 million [8]. Investment Income - Net investment income reached $949 million, a 21.2% increase year over year, exceeding the Zacks Consensus Estimate of $832 million [4]. - Market-based investment income grew by 10.2% year over year to $780 million [4]. Financial Position - As of September 30, 2025, Allstate had a cash balance of $931 million, total assets of $120.4 billion, and total equity of $27.5 billion, reflecting a significant increase from the previous year [9]. - Book value per common share was $95.95, up 36.4% year over year [9]. Market Outlook - Estimates for Allstate have been trending upward, with a consensus estimate shift of 12.31% in the past month, leading to a Zacks Rank of 1 (Strong Buy) [10][12]. - The stock has an aggregate VGM Score of A, indicating strong performance across growth, momentum, and value metrics [11].

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]