Allstate has reported net income applicable to common shareholders of $3.8bn for the fourth quarter of 2025 (Q4 2025), compared to $1.9bn in the same period last year.

The US-based insurer’s total revenue for the quarter reached $17.3bn, a 5.1% increase year-on-year (YoY).

Diluted earnings per share climbed to $14.37, up from $7.07 in the prior year quarter.

The company’s expenses fell to $12.4bn, down from $14.05bn in the previous year’s quarter.

Property-Liability written premiums totalled $14.5bn, a rise of 5.9% from last year, supported by increases in both auto and homeowners’ insurance premiums and policy numbers.

The segment’s underwriting income stood at $4bn, up from $1.8bn a year ago, while catastrophe losses dropped by 49% to $209m.

Auto insurance written premiums grew by 3.1% to $9.34bn, with earned premiums up 2.9%.

The recorded combined ratio for auto insurance improved to 80.8, a change of 12.7 points from last year’s quarter, attributed to higher average earned premiums and lower loss costs.

Homeowners insurance written premiums saw a 13.4% increase to $4.1bn, influenced by higher average premiums and policy growth. Average gross written premium for Allstate brand homeowners insurance was up 7.4% compared to the prior year quarter.

Protection Services revenue reached $917m in the quarter, up 3.1% on the previous year, mainly due to gains in protection plans and roadside services.

Adjusted net income for this segment rose by $7m to $57m.

For the full year 2025, net income applicable to common shareholders was reported at $10.2bn, an increase from $4.6bn in 2024.

Annual total revenue was $67.7bn in 2025, up 5.6% from the previous year.

Allstate returned more than $2.2bn to shareholders through repurchases and dividends during the year.

The company stated that it will raise its dividend to $1.08 per share, payable on 1 April 2026, for shareholders on record as of 2 March 2026.

A new share repurchase programme valued at $4bn over 24 months will begin after the completion of a current $1.5bn programme.

The company reported that it reduced premiums for 7.8 million auto and homeowners policies by an average of 17%, citing efforts to address cost inflation through coverage reviews.

The company also noted improvements in customer interactions and issued nearly $38bn in support and financial resources during claims and unexpected events in 2025.

Allstate CEO Tom Wilson said: “Allstate had a terrific year by better serving customers and making protection more affordable. We proactively reduced premiums for 7.8 million auto and homeowners insurance customers by an average of 17% through tailored coverage reviews to offset cost inflation.

“We also improved 69 million customer interactions and provided customers with nearly $38bn in support and financial resources when the unexpected happened in 2025.”