Nick Nottoli Allister Gobin
NORTHBROOK, Ill., Nov. 4, 2026 – The Allstate Corporation (NYSE: ALL) today reported financial results for the third quarter of 2026.
“Allstate delivered excellent financial results and increased Property-Liability growth in the third quarter,” said Tom Wilson, who leads The Allstate Corporation. “Revenues were $17.3 billion as total policies in force reached 217.6 million, with a 3.3% increase in Property-Liability policies. Net income was $2.1 billion, or $8.03 per diluted share, and adjusted net income* was $2.5 billion, or $9.76 per diluted share. Earnings reflected strong underwriting margins on auto and homeowners insurance, higher investment income and continued growth of Protection Services.”
“The strategy to grow personal property-liability market share and expand Protection Services through Transformative Growth and building Allstate’s Large Language Intelligent Ecosystem (ALLIE) reached several important milestones. Auto and homeowners insurance policies were 3.4% and 3.3% higher than last year, respectively, as new Affordable, Simple and Connected products and broad distribution resulted in increased market share. Protection Plans’ international revenues are growing rapidly. ALLIE has been expanded to handle millions of service calls with additional capabilities planned for early 2027. We continue to innovate to create the future of protection,” concluded Wilson.
• Total revenues of $17.3 billion in the third quarter of 2026 were $93 million, or 0.5% higher than the prior year quarter.
• Net income applicable to common shareholders was $2.1 billion in the third quarter of 2026, compared to $3.7 billion in the prior year quarter primarily due to increased catastrophe losses, a gain on sale of the group health business in 2025 and net losses on investments and derivatives, partially offset by increased premiums earned.
• Adjusted net income* was $2.5 billion, or $9.76 per diluted share, compared to $3.0 billion in the prior year quarter. 1
* Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the “Definitions of Non-GAAP Measures” section of this document. -------------------------------------------------------------------------------- --------------------------------------------------------------------------
earned premiums of $15.1 billion increased 3.8% in the third quarter of 2026 compared to the prior year, primarily driven by policies in force growth and higher homeowners insurance average premiums.
◦ Premiums written increased 2.5% compared to the prior year quarter, reflecting policies in force growth and higher homeowners insurance average premiums, partially offset by lower auto insurance average premiums reflecting a shift in product mix toward Allstate-branded Affordable, Simple, Connected auto insurance products.
◦ Property-Liability recorded combined ratio was 86.6 for the quarter, which was 6.5 points above the prior year quarter primarily due to 7.1 points of higher catastrophe losses, partially offset by 2.4 points of more favorable non- catastrophe prior year reserve releases.
Underwriting income was $2.0 billion compared to $2.9 billion in the prior year quarter, primarily reflecting the impact of increased catastrophe losses.
◦ Policies in force increased by 3.3%, reflecting growth in auto and homeowners insurance policies.
◦ Allstate-branded Affordable, Simple, Connected auto insurance products are now available in 46 states with the homeowners insurance product available in 42 states. Custom360 ® middle market standard and preferred auto and homeowners insurance products for the independent agent channel are available in 41 and 42 states, respectively. 2
insurance results reflect continued execution of Transformative Growth, with strong margins and policies in force growth supported by increased customer value and expanded distribution.
◦ Written and earned premiums grew 0.2% and 0.6%, respectively, compared to the prior year quarter, as policies in force growth was largely offset by lower average premiums.
◦ The recorded auto insurance combined ratio was 83.2 in the third quarter of 2026 compared to 82.0 in the prior year quarter, reflecting 3.6 points of higher underlying losses and 1.5 points of higher catastrophe losses, partially offset by 4.1 points of more favorable prior year reserve releases.
◦ The underlying auto insurance combined ratio* was 89.8 in the third quarter of 2026, compared to 86.0 in the prior year quarter. The third quarter benefited from 1.6 points of favorable development for claims reported in the first half of 2026.
◦ Auto insurance policies in force grew by 3.4% with new business increasing 6.3% from the prior year quarter, reflecting expanded distribution, increased marketing and new products.
insurance remains a competitive advantage and continues to deliver strong underlying profitability and policies in force growth.
Written and earned premiums increased by 7.4% and 11.5%, respectively, compared to the prior year quarter, due to higher average premiums and policies in force growth. Allstate brand homeowners insurance average gross written premium increased 4.9% compared to the prior year quarter, reflecting rate increases and higher home replacement costs.
◦ The recorded homeowners insurance combined ratio was 89.5 in the third quarter of 2026, compared to 71.5 in the prior year quarter, primarily reflecting higher catastrophe losses.
◦ Catastrophe losses were $1.3 billion in the quarter compared to $479 million the prior year.
◦ The underlying homeowners insurance combined ratio* was 60.1 in the third quarter of 2026, compared to 59.8 in the prior year quarter. 3
Underwriting income was $452 million compared to $1.1 billion in the prior year quarter, reflecting higher catastrophe losses.
◦ Policies in force increased 3.3% compared to the prior year quarter, with growth across the exclusive agency, independent agency and direct channels. New business was strong, increasing 10.2% compared to the prior year quarter.
broadens Allstate’s customer value proposition through embedded protection products and services across five businesses. Revenues increased to $964 million in the third quarter of 2026, 6.9% higher than the prior year quarter, primarily due to Protection Plans and Roadside growth. Adjusted net income of $64 million increased by $18 million compared to the prior year quarter, led by growth in Protection Plans.
continued to expand domestically and internationally. Revenue of $631 million increased $43 million, or 7.3%, compared to the prior year quarter. Adjusted net income of $47 million in the third quarter of 2026 increased $13 million compared to the prior year quarter primarily reflecting higher gross margins and reduced operating expenses.
revenue of $70 million in the third quarter of 2026 increased 18.6% compared to the prior year quarter reflecting increased bundling with Allstate-branded Affordable, Simple, Connected auto insurance products and new partnerships. Adjusted net income of $14 million in the third quarter was $2 million higher than the prior year quarter.
generated revenue of $148 million, flat compared to the prior year quarter. Adjusted net income was $7 million compared to $6 million in the prior year quarter.
revenue was $39 million and adjusted net income was $2 million in the third quarter of 2026, in line with the prior year quarter.
revenue increased 11.8% to $76 million compared to the prior year quarter driven by higher lead generation advertising sales. Adjusted net loss was $6 million in the third quarter of 2026 compared to a loss of $8 million in the prior year quarter. In October, Arity acquired INRIX, Inc., a transportation intelligence and mobility analytics provider, expanding Arity’s mobility data and analytics capabilities. In November, Arity entered into a definitive agreement to acquire the remaining ownership of Replica, a mobility data and technology company. The acquisition is expected to close before the end of 2026, subject to customary closing conditions.
uses a proactive approach to balancing enterprise risk and return across the $87.4 billion portfolio. Net investment income of $1.2 billion in the third quarter of 2026 increased by $228 million from the prior year quarter, reflecting higher market-based and performance-based results.
(1) Investment expenses are not allocated between market-based and performance- based portfolios with the exception of investee level expenses.
was $887 million in the third quarter of 2026, an increase of $107 million, or 13.7%, compared to the prior year quarter, reflecting growth in market-based asset balances to $77.6 billion and higher fixed income yields.
totaled $355 million in the third quarter of 2026, an increase of $128 million from the prior year quarter, reflecting private equity valuation increases. Performance-based assets provide diversification and attractive long-term returns despite periodic variability.
were $545 million in the third quarter of 2026, compared to gains of $252 million in the prior year quarter. Third quarter 2026 losses were primarily the result of higher interest rates, including losses on fixed income sales associated with ongoing portfolio management, fixed income exchange traded fund valuations and interest-rate related derivatives.
were $2.6 billion (pre-tax) at September 30, 2026, compared to losses of $97 million in the prior quarter, primarily reflecting lower fixed income valuations as interest rates increased.
on the investment portfolio was negative 2.1% for the third quarter and 1.3% for the trailing 12 months.
“Allstate continues to generate strong financial results while investing to profitably grow the business,” said Chris Lown, Executive Vice President and Chief Financial Officer. “Adjusted net income return on equity* was 39.7% over the last 12 months, and approximately $1.5 billion was returned to shareholders in the third quarter through share repurchases and dividends. As of Sept. 30, $1.3 billion remains under the $4.0 billion share repurchase authorization initiated in February 2026. Disciplined capital management gives us the flexibility to fund growth and pursue attractive investment opportunities while returning excess capital to shareholders,” concluded Lown.
Visit www.allstateinvestors.com for additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, Nov. 5. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com . 5
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with affordable, simple and connected protection for autos, homes, electronic devices and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online and at the workplace. Allstate has 218 million policies in force and is widely known for the slogan “You’re in Good Hands with Allstate.” For more information, visit www.allstate.com. 6
THE ALLSTATE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL ($ in millions, POSITION except par September 30, December 31, (UNAUDITED) value data) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets Investments Fixed income securities, at fair value (amortized $ 60,246 $ 59,115 cost, net $62,818 and $58,730) Equity securities, at fair value 10,172 8,398 (cost $9,200 and $8,026) Mortgage loans, 1,040 879 net Limited partnership 9,058 8,844 interests Short-term, at fair value (amortized 5,779 4,887 cost $5,781 and $4,888) Other investments, 1,080 1,114 net Total 87,375 83,237 investments Cash 549 678 Premium installment 12,376 11,474 receivables, net Deferred policy acquisition 6,213 6,163 costs Reinsurance and indemnification 7,724 8,501 recoverables, net Accrued investment 722 708 income Deferred income 235 — taxes Property and 589 627 equipment, net Goodwill 3,118 3,118 Receivable for 3,750 133 securities sold Other assets, 5,198 5,119 net Total assets $ 127,849 $ 119,758 Liabilities Reserve for property and casualty $ 40,796 $ 41,079 insurance claims and claims expense Unearned 30,378 29,080 premiums Claim payments 1,661 1,419 outstanding Deferred income — 227 taxes Payable for securities 4,241 49 purchased Other liabilities and 10,987 9,825 accrued expenses Debt 7,494 7,490 Total 95,557 89,169 liabilities Equity Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 82.0 thousand 2,001 2,001 shares issued and outstanding, $2,050 aggregate liquidation preference Common stock, $.01 par value, 2.0 billion shares authorized and 900 9 9 million issued, 249 million and 260 million shares outstanding Additional 4,257 4,158 capital paid-in Retained income 69,282 62,393 Treasury stock, at cost (651 million and -41,090 -38,206 640 million shares) Accumulated other comprehensive income (loss): Unrealized net capital gains -2,024 297 and losses Unrealized foreign currency -136 -55 translation adjustments Unamortized pension and other 10 11 postretirement prior service credit Discount rate for reserve for 2 2 future policy benefits Total accumulated other -2,148 255 comprehensive (loss) income Total Allstate shareholders’ 32,311 30,610 equity Noncontrolling -19 -21 interest Total equity 32,292 30,589 Total liabilities and $ 127,849 $ 119,758 equity
We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
◦ Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
◦ Related income tax expense or benefit of these items Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income. We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of net gains and losses on investments and derivatives, pension and other postretirement remeasurement gains and losses, amortization or impairment of purchased intangibles, gain or loss on disposition and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Net gains and losses on investments and derivatives, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Gain or loss on disposition is excluded because it is non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business.
The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income (loss). Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income (loss) generally use a 21% effective tax rate.
9 Adjusted net income (loss) return on Allstate common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders’ equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders’ equity from return on Allstate common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders’ equity and return on Allstate common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders’ equity goal. Adjusted net income return on Allstate common shareholders’ equity should not be considered a substitute for return on Allstate common shareholders’ equity and does not reflect the overall profitability of our business.
The following tables reconcile return on Allstate common shareholders’ equity and adjusted net income (loss) return on Allstate common shareholders’ equity.
($ in millions) Return on Allstate commonshareholders’ For the 12 months equity ended September 30, Numerator: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income applicable to common $ 11,522 $ 8,261 shareholders Denominator: Beginning Allstate commonshareholders’ $ 25,504 $ 18,876 equity Ending Allstate commonshareholders’ 30,310 25,504 equity(1) Average Allstate commonshareholders’ $ 27,907 $ 22,190 equity Return on Allstate common shareholders’ 41.3 % 37.2 % equity
($ in millions) Adjusted net income return on Allstate common shareholders’ For the 12 months equity ended September 30, Numerator: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Adjusted net income $ 11,408 $ 7,578 * Denominator: Beginning Allstate commonshareholders’ $ 25,504 $ 18,876 equity Less: Unrealized net capital gains and 351 361 losses Adjusted beginning Allstate 25,153 18,515 commonshareholders’ equity Ending Allstate commonshareholders’ 30,310 25,504 equity(1) Less: Unrealized net capital gains and -2,024 351 losses Adjusted ending Allstate 32,334 25,153 commonshareholders’ equity Average adjusted Allstate $ 28,744 $ 21,834 commonshareholders’ equity Adjusted net income return on Allstate 39.7 % 34.7 % common shareholders’ equity *
_____________ (1) Excludes equity related to preferred stock of $2,001 million for both periods shown. 10 Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year reserve reestimates, excluding catastrophes on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors, and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio.
Three Nine months months Propert… ended ended September Septemb… 30, 30, 2026 2025 2026 2025 Combined 86.6 80.1 85.1 89.4 ratio Effect of -10.9 -3.8 -10.3 -11.1 catastr… losses Effect of prior year reserve 5.1 2.7 5.5 2.4 reestim… excludi… catastr… Effect of amortiz… -0.3 -0.3 -0.3 -0.3 of purchas… intangi… Underly… combined 80.5 78.7 80.0 80.4 ratio* Effect of prior year 0.1 -0.2 0.2 -0.1 catastr… reserve reestim…
Allstate Three Nine Protecti… months months - Auto ended ended Insurance September September 30, 30, 2026 2025 2026 2025 Combined 83.2 82.0 82.8 86.4 ratio Effect of catastro… -2.2 -0.7 -1.8 -1.7 losses Effect of prior year reserve 9.1 5.0 8.2 4.0 reestima… excluding catastro… Effect of amortiza… of -0.3 -0.3 -0.2 -0.4 purchased intangib… Underlyi… combined 89.8 86.0 89.0 88.3 ratio* Effect of prior year -0.1 — -0.1 -0.1 catastro… reserve reestima…
Allsta… Three Nine Protec… months months - ended ended Homeow… September Septemb… Insura… 30, 30, 2026 2025 2026 2025 Combin… 89.5 71.5 89.3 94.9 ratio Effect of -30.8 -12.3 -29.8 -34.6 catast… losses Effect of prior year 1.6 1.0 1.5 0.3 reserve reesti… exclud… catast… Effect of amorti… -0.2 -0.4 -0.3 -0.4 of purcha… intang… Underl… combin… 60.1 59.8 60.7 60.2 ratio* Effect of prior year 0.5 -0.4 0.5 — catast… reserve reesti…
Full text with the tables
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contacts:
Nick Nottoli Allister Gobin
Media Relations Investor Relations
mediateam@allstate.com invrel@allstate.com
Allstate Reports Excellent Q3 2026 Results
NORTHBROOK, Ill., Nov. 4, 2026 – The Allstate Corporation (NYSE: ALL) today
reported financial results for the third quarter of 2026.
“Allstate delivered excellent financial results and increased Property-Liability
growth in the third quarter,” said Tom Wilson, who leads The Allstate
Corporation. “Revenues were $17.3 billion as total policies in force reached
217.6 million, with a 3.3% increase in Property-Liability policies. Net income
was $2.1 billion, or $8.03 per diluted share, and adjusted net income* was $2.5
billion, or $9.76 per diluted share. Earnings reflected strong underwriting
margins on auto and homeowners insurance, higher investment income and continued
growth of Protection Services.”
“The strategy to grow personal property-liability market share and expand
Protection Services through Transformative Growth and building Allstate’s Large
Language Intelligent Ecosystem (ALLIE) reached several important milestones.
Auto and homeowners insurance policies were 3.4% and 3.3% higher than last year,
respectively, as new Affordable, Simple and Connected products and broad
distribution resulted in increased market share. Protection Plans’ international
revenues are growing rapidly. ALLIE has been expanded to handle millions of
service calls with additional capabilities planned for early 2027. We continue
to innovate to create the future of protection,” concluded Wilson.
Third Quarter 2026 Results
• Total revenues of $17.3 billion in the third quarter of 2026 were $93 million,
or 0.5% higher than the prior year quarter.
• Net income applicable to common shareholders was $2.1 billion in the third
quarter of 2026, compared to $3.7 billion in the prior year quarter primarily
due to increased catastrophe losses, a gain on sale of the group health business
in 2025 and net losses on investments and derivatives, partially offset by
increased premiums earned.
• Adjusted net income* was $2.5 billion, or $9.76 per diluted share, compared to
$3.0 billion in the prior year quarter.
1
Exhibit 99.1
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measure in the “Definitions of Non-GAAP Measures” section of this document.
--------------------------------------------------------------------------------
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•
Property-Liability
earned premiums of $15.1 billion increased 3.8% in the third quarter of 2026
compared to the prior year, primarily driven by policies in force growth and
higher homeowners insurance average premiums.
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◦ Premiums written increased 2.5% compared to the prior year quarter, reflecting
policies in force growth and higher homeowners insurance average premiums,
partially offset by lower auto insurance average premiums reflecting a shift in
product mix toward Allstate-branded Affordable, Simple, Connected auto insurance
products.
◦ Property-Liability recorded combined ratio was 86.6 for the quarter, which was
6.5 points above the prior year quarter primarily due to 7.1 points of higher
catastrophe losses, partially offset by 2.4 points of more favorable non-
catastrophe prior year reserve releases.
◦
Underwriting income was $2.0 billion compared to $2.9 billion in the prior year
quarter, primarily reflecting the impact of increased catastrophe losses.
◦ Policies in force increased by 3.3%, reflecting growth in auto and homeowners
insurance policies.
◦ Allstate-branded Affordable, Simple, Connected auto insurance products are now
available in 46 states with the homeowners insurance product available in 42
states. Custom360 ® middle market standard and preferred auto and homeowners
insurance products for the independent agent channel are available in 41 and 42
states, respectively.
2
Exhibit 99.1
◦
Allstate Protection auto
insurance results reflect continued execution of Transformative Growth, with
strong margins and policies in force growth supported by increased customer
value and expanded distribution.
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◦ Written and earned premiums grew 0.2% and 0.6%, respectively, compared to the
prior year quarter, as policies in force growth was largely offset by lower
average premiums.
◦ The recorded auto insurance combined ratio was 83.2 in the third quarter of
2026 compared to 82.0 in the prior year quarter, reflecting 3.6 points of higher
underlying losses and 1.5 points of higher catastrophe losses, partially offset
by 4.1 points of more favorable prior year reserve releases.
◦ The underlying auto insurance combined ratio* was 89.8 in the third quarter of
2026, compared to 86.0 in the prior year quarter. The third quarter benefited
from 1.6 points of favorable development for claims reported in the first half
of 2026.
◦ Auto insurance policies in force grew by 3.4% with new business increasing
6.3% from the prior year quarter, reflecting expanded distribution, increased
marketing and new products.
◦
Allstate Protection homeowners
insurance remains a competitive advantage and continues to deliver strong
underlying profitability and policies in force growth.
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($ th… ni…
in mo… % mo… %
m… en… / en… /
e… Se… p… Se… p…
r… 20… 30, 20… C… 2… 30, 2… C…
──────────────────────────────────────────────────────────────────────────────
P… $ 4,… $ 4,… 7.4 % $ 13… $ 12… 7.9 %
w…
P… $ 4,… $ 3,… 11… % $ 12… $ 11… 12… %
e…
R…
c… 89… 71… 18… 89… 94… -5…
r…
C… $ 1,… $ 479 17… % $ 3,… $ 3,… -3… %
l…
U…
c… 60… 59… 0.3 60… 60… 0.5
r…
U… $ 452 $ 1,… (… $ 1,… $ 580 1…
i…
P…
in
f… 7,… 7,… 3.3 %
(…
t…
◦
Written and earned premiums increased by 7.4% and 11.5%, respectively, compared
to the prior year quarter, due to higher average premiums and policies in force
growth. Allstate brand homeowners insurance average gross written premium
increased 4.9% compared to the prior year quarter, reflecting rate increases and
higher home replacement costs.
◦ The recorded homeowners insurance combined ratio was 89.5 in the third quarter
of 2026, compared to 71.5 in the prior year quarter, primarily reflecting higher
catastrophe losses.
◦ Catastrophe losses were $1.3 billion in the quarter compared to $479 million
the prior year.
◦ The underlying homeowners insurance combined ratio* was 60.1 in the third
quarter of 2026, compared to 59.8 in the prior year quarter.
3
Exhibit 99.1
◦
Underwriting income was $452 million compared to $1.1 billion in the prior year
quarter, reflecting higher catastrophe losses.
◦ Policies in force increased 3.3% compared to the prior year quarter, with
growth across the exclusive agency, independent agency and direct channels. New
business was strong, increasing 10.2% compared to the prior year quarter.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------
•
Protection Services
broadens Allstate’s customer value proposition through embedded protection
products and services across five businesses. Revenues increased to $964 million
in the third quarter of 2026, 6.9% higher than the prior year quarter, primarily
due to Protection Plans and Roadside growth. Adjusted net income of $64 million
increased by $18 million compared to the prior year quarter, led by growth in
Protection Plans.
P…
S… Th… N…
R… mo… m…
($ en… % / e… % /
in Se… $ S… $
m… 20… 30, 20… Ch… 20… 3… 20… Ch…
──────────────────────────────────────────────────────────────────────────────
T… $ 964 $ 902 6… % $ 2… $ 2… 7… %
r…
P… 631 588 7… 1… 1… 9…
P…
R… 70 59 1… 1… 1… 1…
D… 148 148 — 4… 4… 0…
S…
I… 39 39 — 1… 1… -…
P…
A… 76 68 1… 2… 2… -…
A…
n… $ 64 $ 46 $ 18 $ 1… $ 1… $ 3
i…
(…
P… 47 34 13 1… 1… —
P…
R… 14 12 2 39 34 5
D… 7 6 1 15 14 1
S…
I… 2 2 — 5 5 —
P…
A… -6 -8 2 -… -… -3
(1) Excludes net gains and losses on investments and derivatives.
◦
Protection Plans
continued to expand domestically and internationally. Revenue of $631 million
increased $43 million, or 7.3%, compared to the prior year quarter. Adjusted net
income of $47 million in the third quarter of 2026 increased $13 million
compared to the prior year quarter primarily reflecting higher gross margins and
reduced operating expenses.
◦
Roadside
revenue of $70 million in the third quarter of 2026 increased 18.6% compared to
the prior year quarter reflecting increased bundling with Allstate-branded
Affordable, Simple, Connected auto insurance products and new partnerships.
Adjusted net income of $14 million in the third quarter was $2 million higher
than the prior year quarter.
◦
Dealer Services
generated revenue of $148 million, flat compared to the prior year quarter.
Adjusted net income was $7 million compared to $6 million in the prior year
quarter.
◦
Identity Protection
revenue was $39 million and adjusted net income was $2 million in the third
quarter of 2026, in line with the prior year quarter.
◦
Arity
revenue increased 11.8% to $76 million compared to the prior year quarter driven
by higher lead generation advertising sales. Adjusted net loss was $6 million in
the third quarter of 2026 compared to a loss of $8 million in the prior year
quarter. In October, Arity acquired INRIX, Inc., a transportation intelligence
and mobility analytics provider, expanding Arity’s mobility data and analytics
capabilities. In November, Arity entered into a definitive agreement to acquire
the remaining ownership of Replica, a mobility data and technology company. The
acquisition is expected to close before the end of 2026, subject to customary
closing conditions.
--------------------------------------------------------------------------------
-----------------------------------------------------------------------
4
Exhibit 99.1
•
Allstate Investments
uses a proactive approach to balancing enterprise risk and return across the
$87.4 billion portfolio. Net investment income of $1.2 billion in the third
quarter of 2026 increased by $228 million from the prior year quarter,
reflecting higher market-based and performance-based results.
A…
I…
R…
($ Th… Ni…
in mo… mo…
m… en… $ / en… $ /
e… Se… pts Se… pts
r… 20… 30, 20… Ch… 20… 30, 20… Ch…
──────────────────────────────────────────────────────────────────────────────
N…
i… $ 1,… $ 949 $ 228 $ 3,… $ 2… $ 5…
i…
M… 887 780 107 2,… 2… 2…
P… 355 227 128 801 5… 2…
N…
g…
(…
on $ -5… $ 252 $ -7… $ 105 $ -… $ 3…
i…
a…
d…
C…
in
u…
n…
c… $ -2… $ 403 $ -2… $ -2… $ 1… $ -…
g…
a…
l…
p…
T…
r…
on -2… % 2.0 % -4… 0.3 % 4… % -…
i…
p…
T…
r…
on
i… 1.3 % 3… % -…
p…
12
m…
(1) Investment expenses are not allocated between market-based and performance-
based portfolios with the exception of investee level expenses.
(2) Includes investments held for sale.
◦
Market-based investment income
was $887 million in the third quarter of 2026, an increase of $107 million, or
13.7%, compared to the prior year quarter, reflecting growth in market-based
asset balances to $77.6 billion and higher fixed income yields.
◦
Performance-based investment income
totaled $355 million in the third quarter of 2026, an increase of $128 million
from the prior year quarter, reflecting private equity valuation increases.
Performance-based assets provide diversification and attractive long-term
returns despite periodic variability.
◦
Net losses on investments and derivatives
were $545 million in the third quarter of 2026, compared to gains of $252
million in the prior year quarter. Third quarter 2026 losses were primarily the
result of higher interest rates, including losses on fixed income sales
associated with ongoing portfolio management, fixed income exchange traded fund
valuations and interest-rate related derivatives.
◦
Unrealized net capital losses
were $2.6 billion (pre-tax) at September 30, 2026, compared to losses of $97
million in the prior quarter, primarily reflecting lower fixed income valuations
as interest rates increased.
◦
Total return
on the investment portfolio was negative 2.1% for the third quarter and 1.3% for
the trailing 12 months.
Proactive Capital Management
“Allstate continues to generate strong financial results while investing to
profitably grow the business,” said Chris Lown, Executive Vice President and
Chief Financial Officer. “Adjusted net income return on equity* was 39.7% over
the last 12 months, and approximately $1.5 billion was returned to shareholders
in the third quarter through share repurchases and dividends. As of Sept. 30,
$1.3 billion remains under the $4.0 billion share repurchase authorization
initiated in February 2026. Disciplined capital management gives us the
flexibility to fund growth and pursue attractive investment opportunities while
returning excess capital to shareholders,” concluded Lown.
Visit www.allstateinvestors.com for additional information about Allstate’s
results, including a webcast of its quarterly conference call and the call
presentation. The conference call will be at 9 a.m. ET on Thursday, Nov. 5.
Financial information, including material announcements about The Allstate
Corporation, is routinely posted on www.allstateinvestors.com .
5
Exhibit 99.1
Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results
based on our estimates, assumptions and plans that are subject to uncertainty.
These statements are made subject to the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements do
not relate strictly to historical or current facts and may be identified by
their use of words like “plans,” “seeks,” “expects,” “will,” “should,”
“anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other
words with similar meanings. We believe these statements are based on reasonable
estimates, assumptions and plans. However, if the estimates, assumptions or
plans underlying the forward-looking statements prove inaccurate or if other
risks or uncertainties arise, actual results could differ materially from those
communicated in these forward-looking statements. Factors that could cause
actual results to differ materially from those expressed in, or implied by, the
forward-looking statements may be found in our filings with the U.S. Securities
and Exchange Commission, including the “Risk Factors” section in our most recent
annual report on Form 10-K. Forward-looking statements are as of the date on
which they are made, and we assume no obligation to update or revise any
forward-looking statement.
About Allstate
The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties
with affordable, simple and connected protection for autos, homes, electronic
devices and identities. Products are available through a broad distribution
network including Allstate agents, independent agents, major retailers, online
and at the workplace. Allstate has 218 million policies in force and is widely
known for the slogan “You’re in Good Hands with Allstate.” For more information,
visit www.allstate.com.
6
THE ALLSTATE
CORPORATION AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED
STATEMENTS OF
FINANCIAL ($ in millions,
POSITION except par September 30, December 31,
(UNAUDITED) value data) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Investments
Fixed income
securities, at
fair value
(amortized $ 60,246 $ 59,115
cost, net
$62,818 and
$58,730)
Equity
securities, at
fair value 10,172 8,398
(cost
$9,200 and
$8,026)
Mortgage loans, 1,040 879
net
Limited
partnership 9,058 8,844
interests
Short-term, at
fair value
(amortized 5,779 4,887
cost $5,781 and
$4,888)
Other
investments, 1,080 1,114
net
Total 87,375 83,237
investments
Cash 549 678
Premium
installment 12,376 11,474
receivables,
net
Deferred policy
acquisition 6,213 6,163
costs
Reinsurance and
indemnification 7,724 8,501
recoverables,
net
Accrued
investment 722 708
income
Deferred income 235 —
taxes
Property and 589 627
equipment, net
Goodwill 3,118 3,118
Receivable for 3,750 133
securities sold
Other assets, 5,198 5,119
net
Total assets $ 127,849 $ 119,758
Liabilities
Reserve for
property and
casualty $ 40,796 $ 41,079
insurance
claims and
claims expense
Unearned 30,378 29,080
premiums
Claim payments 1,661 1,419
outstanding
Deferred income — 227
taxes
Payable for
securities 4,241 49
purchased
Other
liabilities and 10,987 9,825
accrued
expenses
Debt 7,494 7,490
Total 95,557 89,169
liabilities
Equity
Preferred stock
and additional
capital
paid-in, $1 par
value, 25
million shares
authorized,
82.0 thousand 2,001 2,001
shares issued
and
outstanding,
$2,050
aggregate
liquidation
preference
Common stock,
$.01 par value,
2.0
billion shares
authorized and
900 9 9
million issued,
249 million and
260
million shares
outstanding
Additional 4,257 4,158
capital paid-in
Retained income 69,282 62,393
Treasury stock,
at cost (651
million and -41,090 -38,206
640 million
shares)
Accumulated
other
comprehensive
income
(loss):
Unrealized net
capital gains -2,024 297
and losses
Unrealized
foreign
currency -136 -55
translation
adjustments
Unamortized
pension and
other 10 11
postretirement
prior service
credit
Discount rate
for reserve for 2 2
future
policy benefits
Total
accumulated
other -2,148 255
comprehensive
(loss) income
Total Allstate
shareholders’ 32,311 30,610
equity
Noncontrolling -19 -21
interest
Total equity 32,292 30,589
Total
liabilities and $ 127,849 $ 119,758
equity
7
THE
ALLST…
CORPO…
AND
SUBSI…
CONDE…
CONSO…
STATE…
OF
OPERA…
(UNAU…
($ in
milli… Three Nine
except months months
per ended ended
share Septem… Septem…
data) 30, 30,
Reven… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Prope…
and
casua… $ 15,856 $ 15,253 $ 47,079 $ 44,992
insur…
premi…
Accid…
and
health
insur… 136 110 406 832
premi…
and
contr…
charg…
Other 724 691 2,171 2,200
reven…
Net
inves… 1,177 949 3,124 2,557
income
Net
gains
(loss…
on -545 252 105 -241
inves…
and
deriv…
Total 17,348 17,255 52,885 50,340
reven…
Costs
and
expen…
Prope…
and
casua…
insur… 9,943 8,654 28,990 29,718
claims
and
claims
expen…
Accid…
health
and 77 67 225 588
other
policy
benef…
Amort…
of
defer… 2,220 2,101 6,600 6,264
policy
acqui…
costs
Opera…
costs 2,336 2,265 6,876 6,645
and
expen…
Pensi…
and
other
postr… -28 -108 -155 -30
remea…
(gain…
losses
Restr…
and 40 17 52 48
relat…
charg…
Amort…
of 46 59 139 175
purch…
intan…
Inter… 97 101 291 301
expen…
Total
costs 14,731 13,156 43,018 43,709
and
expen…
Gain
on
dispo… — 720 — 1,610
of
opera…
Income
from
opera…
before 2,617 4,819 9,867 8,241
income
tax
expen…
Income
tax 537 1,075 2,058 1,802
expen…
Net 2,080 3,744 7,809 6,439
income
Less:
Net
income
(loss) 1 -2 2 -11
attri…
to
nonco…
inter…
Net
income
attri… 2,079 3,746 7,807 6,450
to
Allst…
Less:
Prefe… 29 29 88 88
stock
divid…
Net
income
appli… $ 2,050 $ 3,717 $ 7,719 $ 6,362
to
common
share…
Earni…
per
common
share:
Net
income
appli…
to
common
share… $ 8.15 $ 14.13 $ 30.20 $ 24.07
per
common
share
-
Basic
Weigh…
avera…
common 251.6 263.1 255.6 264.3
shares
-
Basic
Net
income
appli…
to
common
share… $ 8.03 $ 13.95 $ 29.79 $ 23.76
per
common
share
-
Dilut…
Weigh…
avera…
common 255.3 266.4 259.1 267.8
shares
-
Dilut…
8
Definitions of Non-GAAP Measures
We believe that investors’ understanding of Allstate’s performance is enhanced
by our disclosure of the following non-GAAP measures. Our methods for
calculating these measures may differ from those used by other companies and
therefore comparability may be limited.
Adjusted net income (loss)
is net income (loss) applicable to common shareholders, excluding:
◦ Net gains and losses on investments and derivatives
◦ Pension and other postretirement remeasurement gains and losses
◦ Amortization or impairment of purchased intangibles
◦ Gain or loss on disposition
◦ Adjustments for other significant non-recurring, infrequent or unusual items,
when (a) the nature of the charge or gain is such that it is reasonably unlikely
to recur within two years, or (b) there has been no similar charge or gain
within the prior two years
◦ Related income tax expense or benefit of these items
Net income (loss) applicable to common shareholders is the GAAP measure that is
most directly comparable to adjusted net income.
We use adjusted net income as an important measure to evaluate our results of
operations. We believe that the measure provides investors with a valuable
measure of the Company’s ongoing performance because it reveals trends in our
insurance and financial services business that may be obscured by the net effect
of net gains and losses on investments and derivatives, pension and other
postretirement remeasurement gains and losses, amortization or impairment of
purchased intangibles, gain or loss on disposition and adjustments for other
significant non-recurring, infrequent or unusual items and the related tax
expense or benefit of these items. Net gains and losses on investments and
derivatives, and pension and other postretirement remeasurement gains and losses
may vary significantly between periods and are generally driven by business
decisions and external economic developments such as capital market conditions,
the timing of which is unrelated to the insurance underwriting process. Gain or
loss on disposition is excluded because it is non-recurring in nature and the
amortization or impairment of purchased intangibles is excluded because it
relates to the acquisition purchase price and is not indicative of our
underlying business results or trends. Non-recurring items are excluded because,
by their nature, they are not indicative of our business or economic trends.
Accordingly, adjusted net income excludes the effect of items that tend to be
highly variable from period to period and highlights the results from ongoing
operations and the underlying profitability of our business. A byproduct of
excluding these items to determine adjusted net income is the transparency and
understanding of their significance to net income variability and profitability
while recognizing these or similar items may recur in subsequent periods.
Adjusted net income is used by management along with the other components of net
income (loss) applicable to common shareholders to assess our performance. We
use adjusted measures of adjusted net income in incentive compensation.
Therefore, we believe it is useful for investors to evaluate net income (loss)
applicable to common shareholders, adjusted net income and their components
separately and in the aggregate when reviewing and evaluating our performance.
We note that investors, financial analysts, financial and business media
organizations and rating agencies utilize adjusted net income results in their
evaluation of our and our industry’s financial performance and in their
investment decisions, recommendations and communications as it represents a
reliable, representative and consistent measurement of the industry and the
Company and management’s performance. We note that the price to earnings
multiple commonly used by insurance investors as a forward-looking valuation
technique uses adjusted net income as the denominator. Adjusted net income
should not be considered a substitute for net income (loss) applicable to common
shareholders and does not reflect the overall profitability of our business.
The following tables reconcile net income (loss) applicable to common
shareholders and adjusted net income (loss). Taxes on adjustments to reconcile
net income (loss) applicable to common shareholders and adjusted net income
(loss) generally use a 21% effective tax rate.
Three
($ in months
millio… ended 2026
except Septemb… Per
per 30, diluted
share 2026 common
data) Consoli… 2025 share 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
applic… $ 2,050 $ 3,717 $ 8.03 $ 13.95
to
common
shareh…
Net
(gains)
losses
on 545 -252 2.13 -0.95
invest…
and
deriva…
Pension
and
other
postre… -28 -108 -0.11 -0.40
remeas…
(gains)
losses
Amorti…
of 46 59 0.18 0.22
purcha…
intang…
(Gain)
loss on 1 -723 — -2.71
dispos…
Income
tax -121 283 -0.47 1.06
expense
(benef…
Adjust…
net $ 2,493 $ 2,976 $ 9.76 $ 11.17
income
*
Nine
months
ended
Septemb…
30,
2026 2025 2026 2025
Per
Consoli… diluted
common
share
Net
income
applic… $ 7,719 $ 6,362 $ 29.79 $ 23.76
to
common
shareh…
Net
(gains)
losses
on -105 241 -0.41 0.90
invest…
and
deriva…
Pension
and
other
postre… -155 -30 -0.60 -0.11
remeas…
(gains)
losses
Amorti…
of 139 175 0.54 0.65
purcha…
intang…
(Gain)
loss on -6 -1,616 -0.02 -6.03
dispos…
Income
tax 28 384 0.11 1.43
expense
(benef…
Adjust…
net $ 7,620 $ 5,516 $ 29.41 $ 20.60
income
*
9
Adjusted net income (loss) return on Allstate common shareholders’ equity is a
ratio that uses a non-GAAP measure. It is calculated by dividing the rolling
12-month adjusted net income by the average of Allstate common shareholders’
equity at the beginning and at the end of the 12-months, after excluding the
effect of unrealized net capital gains and losses. Return on Allstate common
shareholders’ equity is the most directly comparable GAAP measure. We use
adjusted net income as the numerator for the same reasons we use adjusted net
income, as discussed previously. We use average Allstate common shareholders’
equity excluding the effect of unrealized net capital gains and losses for the
denominator as a representation of common shareholders’ equity primarily
applicable to Allstate's earned and realized business operations because it
eliminates the effect of items that are unrealized and vary significantly
between periods due to external economic developments such as capital market
conditions like changes in interest rates, the amount and timing of which are
unrelated to the insurance underwriting process. We use it to supplement our
evaluation of net income (loss) applicable to common shareholders and return on
Allstate common shareholders’ equity because it excludes the effect of items
that tend to be highly variable from period to period. We believe that this
measure is useful to investors and that it provides a valuable tool for
investors when considered along with return on Allstate common shareholders’
equity because it eliminates the after-tax effects of realized and unrealized
net capital gains and losses that can fluctuate significantly from period to
period and that are driven by economic developments, the magnitude and timing of
which are generally not influenced by management. In addition, it eliminates
non-recurring items that are not indicative of our ongoing business or economic
trends. A byproduct of excluding the items noted above to determine adjusted net
income return on Allstate common shareholders’ equity from return on Allstate
common shareholders’ equity is the transparency and understanding of their
significance to return on common shareholders’ equity variability and
profitability while recognizing these or similar items may recur in subsequent
periods. We use adjusted measures of adjusted net income return on Allstate
common shareholders’ equity in incentive compensation. Therefore, we believe it
is useful for investors to have adjusted net income return on Allstate common
shareholders’ equity and return on Allstate common shareholders’ equity when
evaluating our performance. We note that investors, financial analysts,
financial and business media organizations and rating agencies utilize adjusted
net income return on common shareholders’ equity results in their evaluation of
our and our industry’s financial performance and in their investment decisions,
recommendations and communications as it represents a reliable, representative
and consistent measurement of the industry and the company and management’s
utilization of capital. We also provide it to facilitate a comparison to our
long-term adjusted net income return on Allstate common shareholders’ equity
goal. Adjusted net income return on Allstate common shareholders’ equity should
not be considered a substitute for return on Allstate common shareholders’
equity and does not reflect the overall profitability of our business.
The following tables reconcile return on Allstate common shareholders’ equity
and adjusted net income (loss) return on Allstate common shareholders’ equity.
($ in millions)
Return on Allstate
commonshareholders’ For the 12 months
equity ended September 30,
Numerator: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income
applicable to common $ 11,522 $ 8,261
shareholders
Denominator:
Beginning Allstate
commonshareholders’ $ 25,504 $ 18,876
equity
Ending Allstate
commonshareholders’ 30,310 25,504
equity(1)
Average Allstate
commonshareholders’ $ 27,907 $ 22,190
equity
Return on Allstate
common shareholders’ 41.3 % 37.2 %
equity
($ in millions)
Adjusted net income
return on Allstate
common shareholders’ For the 12 months
equity ended September 30,
Numerator: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Adjusted net income $ 11,408 $ 7,578
*
Denominator:
Beginning Allstate
commonshareholders’ $ 25,504 $ 18,876
equity
Less: Unrealized net
capital gains and 351 361
losses
Adjusted beginning
Allstate 25,153 18,515
commonshareholders’
equity
Ending Allstate
commonshareholders’ 30,310 25,504
equity(1)
Less: Unrealized net
capital gains and -2,024 351
losses
Adjusted ending
Allstate 32,334 25,153
commonshareholders’
equity
Average adjusted
Allstate $ 28,744 $ 21,834
commonshareholders’
equity
Adjusted net income
return on Allstate 39.7 % 34.7 %
common shareholders’
equity *
_____________
(1) Excludes equity related to preferred stock of $2,001 million for both
periods shown.
10
Combined ratio excluding the effect of catastrophes, prior year reserve
reestimates and amortization or impairment of purchased intangibles (“underlying
combined ratio”) is a non-GAAP ratio, which is computed as the difference
between four GAAP operating ratios: the combined ratio, the effect of
catastrophes on the combined ratio, the effect of prior year reserve
reestimates, excluding catastrophes on the combined ratio, and the effect of
amortization or impairment of purchased intangibles on the combined ratio. We
believe that this ratio is useful to investors, and it is used by management to
reveal the trends in our Property-Liability business that may be obscured by
catastrophe losses, prior year reserve reestimates and amortization or
impairment of purchased intangibles. Catastrophe losses cause our loss trends to
vary significantly between periods as a result of their incidence of occurrence
and magnitude, and can have a significant impact on the combined ratio. Prior
year reserve reestimates are caused by unexpected loss development on historical
reserves, which could increase or decrease current year net income. Amortization
or impairment of purchased intangibles relates to the acquisition purchase price
and is not indicative of our underlying insurance business results or trends. We
believe it is useful for investors to evaluate these components separately and
in the aggregate when reviewing our underwriting performance. The most directly
comparable GAAP measure is the combined ratio. The underlying combined ratio
should not be considered a substitute for the combined ratio and does not
reflect the overall underwriting profitability of our business.
The following tables reconcile the respective combined ratio to the underlying
combined ratio. Underwriting margin is calculated as 100% minus the combined
ratio.
Three Nine
months months
Propert… ended ended
September Septemb…
30, 30,
2026 2025 2026 2025
Combined 86.6 80.1 85.1 89.4
ratio
Effect
of -10.9 -3.8 -10.3 -11.1
catastr…
losses
Effect
of prior
year
reserve 5.1 2.7 5.5 2.4
reestim…
excludi…
catastr…
Effect
of
amortiz… -0.3 -0.3 -0.3 -0.3
of
purchas…
intangi…
Underly…
combined 80.5 78.7 80.0 80.4
ratio*
Effect
of prior
year 0.1 -0.2 0.2 -0.1
catastr…
reserve
reestim…
Allstate Three Nine
Protecti… months months
- Auto ended ended
Insurance September September
30, 30,
2026 2025 2026 2025
Combined 83.2 82.0 82.8 86.4
ratio
Effect of
catastro… -2.2 -0.7 -1.8 -1.7
losses
Effect of
prior
year
reserve 9.1 5.0 8.2 4.0
reestima…
excluding
catastro…
Effect of
amortiza…
of -0.3 -0.3 -0.2 -0.4
purchased
intangib…
Underlyi…
combined 89.8 86.0 89.0 88.3
ratio*
Effect of
prior
year -0.1 — -0.1 -0.1
catastro…
reserve
reestima…
Allsta… Three Nine
Protec… months months
- ended ended
Homeow… September Septemb…
Insura… 30, 30,
2026 2025 2026 2025
Combin… 89.5 71.5 89.3 94.9
ratio
Effect
of -30.8 -12.3 -29.8 -34.6
catast…
losses
Effect
of
prior
year 1.6 1.0 1.5 0.3
reserve
reesti…
exclud…
catast…
Effect
of
amorti… -0.2 -0.4 -0.3 -0.4
of
purcha…
intang…
Underl…
combin… 60.1 59.8 60.7 60.2
ratio*
Effect
of
prior
year 0.5 -0.4 0.5 —
catast…
reserve
reesti…
# # # # #
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