The Allstate Corporation — Q3 2026 Earnings Summary

Financial Performance:

• Total revenues were $17.3 billion for the quarter, a 0.5% increase year-over-year; for the nine months ended September 30, 2026, revenues were $52.9 billion, up 5.1% from $50.3 billion in 2025.
• Net income applicable to common shareholders was $2.1 billion ($8.03 per diluted share) for the quarter, down 44.8% from $3.7 billion ($13.95 per share) in the prior year quarter; for the nine months, net income was $7.7 billion ($29.79 per share), up 21.3% from $6.4 billion ($23.76 per share).
• Adjusted net income was $2.5 billion ($9.76 per diluted share) for the quarter, down 16.2% from $3.0 billion ($11.17 per share) in the prior year quarter; for the nine months, adjusted net income was $7.6 billion ($29.41 per share), up 38.1% from $5.5 billion ($20.60 per share).
• Property-Liability earned premiums were $15.1 billion, up 3.8% year-over-year.
• The recorded combined ratio for Property-Liability was 86.6 for the quarter, compared to 80.1 in the prior year quarter; for the nine months, it was 85.1, compared to 89.4.
• Underlying combined ratio for Property-Liability was 80.5 for the quarter (vs. 78.7) and 80.0 for the nine months (vs. 80.4).
• Catastrophe losses were $1.65 billion for the quarter, up 195.7% from $558 million in the prior year quarter; for the nine months, they were $4.6 billion, down 2.9% from $4.75 billion.
• Underwriting income was $2.0 billion for the quarter, down 30.1% from $2.9 billion; for the nine months, it was $6.7 billion, up 47.5% from $4.5 billion.
• Net investment income was $1.2 billion, up $228 million from the prior year quarter.
• Net losses on investments and derivatives were $545 million for the quarter, compared to gains of $252 million in the prior year quarter.
• Total return on the investment portfolio was -2.1% for the quarter and 1.3% for the trailing 12 months.
• Return on common shareholders' equity (trailing 12 months) was 41.3% for net income and 39.7% for adjusted net income.
• Book value per common share was $120.23 as of September 30, 2026, up 25.3% from $95.95 in the prior year period.
• Common shares outstanding were 248.8 million, down 5.1% from 262.1 million.

Guidance and Future Outlook:

• ALLIE (Allstate's Large Language Intelligent Ecosystem) has been expanded to handle millions of service calls, with additional capabilities planned for early 2027.
• Arity's acquisition of Replica is expected to close before the end of 2026, subject to customary closing conditions.
• The company continues to invest in profitable growth and maintain disciplined capital management to fund growth and pursue investment opportunities.

Business Segments and Product Lines:

• Property-Liability: Policies in force increased 3.3% to 39.3 million. Written premiums were $16.0 billion, up 2.5%.
• Auto Insurance: Policies in force grew 3.4% to 26.2 million; new business increased 6.3%. Written premiums were $9.9 billion, up 0.2%. Earned premiums were $9.7 billion, up 0.6%. The recorded combined ratio was 83.2, and the underlying combined ratio was 89.8. Underwriting income was $1.6 billion.
• Homeowners Insurance: Policies in force grew 3.3% to 7.9 million; new business increased 10.2%. Written premiums were $5.0 billion, up 7.4%. Earned premiums were $4.3 billion, up 11.5%. The recorded combined ratio was 89.5, and the underlying combined ratio was 60.1. Underwriting income was $452 million.
• Protection Services: Total revenues were $964 million, up 6.9% year-over-year. Adjusted net income was $64 million, up $18 million.
  • Protection Plans revenue was $631 million, up 7.3%; adjusted net income was $47 million.
  • Roadside revenue was $70 million, up 18.6%; adjusted net income was $14 million.
  • Dealer Services revenue was $148 million (flat); adjusted net income was $7 million.
  • Identity Protection revenue was $39 million (flat); adjusted net income was $2 million.
  • Arity revenue was $76 million, up 11.8%; adjusted net loss was $6 million.
• ALLIE: The strategy to expand ALLIE reached milestones, with the ecosystem now handling millions of service calls.
• Product Availability: Allstate-branded Affordable, Simple, Connected auto products are available in 46 states; homeowners products in 42 states. Custom360® products for independent agents are available in 41 (auto) and 42 (homeowners) states.

Market and Competitive Landscape:

• Auto and homeowners insurance policies increased 3.4% and 3.3% respectively, driven by new Affordable, Simple, and Connected products and broad distribution, resulting in increased market share.
• Protection Plans' international revenues are growing rapidly.
• Arity acquired INRIX, Inc. in October to expand mobility data and analytics capabilities.

Risks and Challenges:

• Increased catastrophe losses significantly impacted quarterly net income and underwriting income.
• Net losses on investments and derivatives were driven by higher interest rates, including losses on fixed income sales, ETF valuations, and interest-rate related derivatives.
• Unrealized net capital losses were $2.6 billion (pre-tax) as of September 30, 2026, reflecting lower fixed income valuations due to increased interest rates.
• The company notes that actual results could differ materially from forward-looking statements due to uncertainties and risks outlined in SEC filings.

Management Commentary and Tone:

• Tom Wilson, CEO, stated the company delivered "excellent financial results" and increased Property-Liability growth, highlighting strong underwriting margins and continued growth of Protection Services.
• Wilson emphasized the strategy to grow market share and expand Protection Services through Transformative Growth and ALLIE reached important milestones.
• Chris Lown, CFO, noted the company continues to generate strong financial results while investing to profitably grow the business, with adjusted net income return on equity at 39.7% over the last 12 months.
• Lown highlighted disciplined capital management, returning approximately $1.5 billion to shareholders in the third quarter through share repurchases and dividends.

Other Key Points:

• Approximately $1.5 billion was returned to shareholders in the third quarter through share repurchases and dividends.
• As of September 30, $1.3 billion remains under the $4.0 billion share repurchase authorization initiated in February 2026.
• Arity acquired INRIX, Inc. in October 2026.
• Arity entered into a definitive agreement in November 2026 to acquire the remaining ownership of Replica, expected to close before the end of 2026.
• The company reported a gain on the sale of the group health business in 2025 which contributed to prior year comparisons.
• Total policies in force reached 217.6 million as of the end of the quarter.
• The conference call for Q3 2026 results was scheduled for November 5, 2026, at 9 a.m. ET.