The Allstate Corporation reported second-quarter 2025 earnings showing increased revenues, net income, and underwriting results compared to the same period last year.
Total revenues reached $16.6 billion for the quarter, up $919 million, or 5.8%, from the prior-year quarter. Net income attributable to common shareholders was $2.1 billion, compared to $301 million in the same period of 2024.
The result included a $643 million after-tax gain from the sale of the employer voluntary benefits business. Adjusted net income was $1.6 billion, or $5.94 per diluted share, compared to $429 million in the prior-year quarter. Adjusted net income return on common shareholders' equity was 28.6%.
In the first quarter of 2025, Allstate reported total revenues of $16.5 billion, reflecting a 7.8% year-over-year increase, but net income dropped to $566 million as wildfire losses drove gross catastrophe costs to $3.3 billion. Reinsurance recoveries offset $1.1 billion of these losses, leaving net catastrophe losses of $2.2 billion for the period.
Property-liability earned premiums in the second quarter totaled $14.3 billion, a 7.5% increase from the same period last year, driven by higher average premiums and modest policy growth. The segment produced $1.3 billion in underwriting income, compared to a $145 million underwriting loss in the second quarter of 2024.
Allstate previously reported preliminary pretax catastrophe losses of approximately $1.99 billion for the quarter, down from $2.12 billion in Q2 2024. The insurer attributed about 70% of these losses to three major wind and hail events that occurred during the period, with another $619 million linked to 15 separate events in June.
The protection services segment, which includes five businesses offering embedded Allstate-branded products in non-insurance purchases, reported $867 million in revenues, up 12.2% year over year. Adjusted net income rose to $60 million, an increase of $5 million from the prior-year quarter.
Allstate completed the sale of its employer voluntary benefits business on April 1, generating a $643 million after-tax gain recorded in the second quarter. The sale of its group health business closed on July 1, and is expected to produce a financial book gain of about $500 million, to be recognized in the third quarter. Assets and liabilities related to the group health business were classified as held for sale during the second quarter.
Allstate Investments reported net investment income of $754 million for the quarter, up $42 million compared to the same period last year. The $77.4 billion portfolio benefited from market-based growth, partially offset by lower performance-based income.
“Allstate had strong operating and financial performance in the second quarter while executing our growth strategies,” said CEO Tom Wilson (pictured above). “In addition to strong financial results, we are creating shareholder value by increasing growth and proactively managing investments and capital.”
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