The Allstate Corp. more than doubled its fourth-quarter net income to $3.8 billion, up from $1.9 billion a year earlier, as underwriting gains and affordability initiatives drove results that outpaced key rivals in the personal lines market.
Full-year net income reached $10.17 billion, or $38.06 per diluted share, on total revenues of $67.69 billion. Fourth-quarter revenues came in at $17.35 billion.
The Q4 results continue a trend from earlier in the year. In Q3 2025, Allstate's property-liability combined ratio stood at 80.1, an improvement of 16.3 points from the prior year, driven by lower catastrophe losses and reserve releases.
Homeowners' insurance produced $2.39 billion in underwriting income, with its combined ratio dropping to 84.4 from 90.1. Auto premiums earned rose 4.4% while policies in force increased 2.3%. Homeowners' premiums grew 15%, with policies in force up 2.5%.
The results place Allstate ahead of Progressive, its closest personal lines competitor, which posted a combined ratio of about 88.0 for the fourth quarter. Allstate's auto insurance combined ratio came in at 85.0, a 10-point improvement from 95.0 in 2024.
Both insurers outperformed the broader industry. S&P Global Market Intelligence projects a 94.5 combined ratio for auto insurance in 2025, driving the all-lines P/C combined ratio to 96.2.
AM Best data shows personal auto recorded a decade-high net profit of $37.6 billion in 2024, a sharp reversal from 2022 when the segment posted a net operating loss exceeding $21 billion.
The company implemented rate decreases averaging 9% across 32 states for its Affordable, Simple, Connected auto product. Allstate's SAVE program reduced premiums by 17% for 7.8 million customers through coverage adjustments, with the cumulative earned premium impact from these actions totaling $810 million by year-end.
Read more: Allstate reports major cat losses
Personal lines new business reached 11.6 million policies in 2025, up from 5.5 million in 2019. Total policies in force grew to 38.1 million from 33.5 million over the same period. Marketing investments increased to $2.1 billion from $900 million in 2019.
Total investment portfolio carrying value rose to $83.2 billion from $72.6 billion, with net investment income reaching $3.45 billion. Allstate returned more than $2.2 billion to shareholders through dividends and share repurchases in 2025.
The board approved a quarterly dividend of $1.08 per share and authorized a new $4 billion share repurchase program. Over the past five years, the company has repurchased 18% of outstanding shares, rising to 39% over a decade.
