Allstate Q2 Earnings Beat Estimates on Strong Premium Growth

The Allstate Corporation ALL reported a second-quarter 2025 adjusted net income of $5.94 per share, which beat the Zacks Consensus Estimate by 78.9%. The bottom line rose significantly from $1.61 a year ago.

Operating revenues advanced 6.1% year over year to $16.8 billion but missed the consensus mark by 2.9%.

The better-than-expected second-quarter earnings benefited from growth in premiums and improved investment income in the Property-Liability business and decreased costs and expenses. However, the upside was partly offset by the sale of the Employer Voluntary Benefits unit.

The Allstate Corporation Price, Consensus and EPS Surprise

The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote

Key Takeaways From Allstate’s Q2 Results

Property and casualty insurance premiums increased 7.8% year over year to $15 billion. Net investment income was $754 million, which rose 5.9% year over year, resulting from a growing market-based portfolio. The metric missed the Zacks Consensus Estimate of $815.4 million. Market-based investment income increased 66% year over year to $733 million in the quarter under review.

Total costs and expenses declined 3% year over year to $14.8 billion, lower than our estimate of $16.2 billion. The year-over-year decline was due to decreased property and casualty insurance claims and claims expenses, as well as accident, health and other policy benefits. Catastrophe losses decreased to $2 billion from $2.1 billion a year ago.

Allstate’s pretax income was $2.7 billion in the second quarter, significantly up from the year-ago figure of $430 million.

As of June 30, 2025, total policies in force were 208 million, which grew 4% year over year.

ALL’s Segmental Performances

The Property-Liability segment’s premiums earned advanced 7.5% year over year to $14.3 billion, attributable to higher average premiums. Yet, the metric fell short of the Zacks Consensus Estimate by 1.4%. Underwriting income in the unit amounted to $1.3 billion against the prior-year quarter’s loss of $145 million. The underlying combined ratio improved 580 basis points year over year to 79.5%.

The Protection Services segment recorded revenues of $867 million, which advanced 12.2% year over year, aided by Allstate Protection Plans and Arity businesses. Adjusted net income increased to $60 million from $55 million a year ago.

The Allstate Health and Benefits segment’s premium and contract charges declined 50.4% year over year to $235 million due to the Employer Voluntary Benefits unit sale and missed the Zacks Consensus Estimate by 33%. Adjusted net income of $4 million dropped 93.1% year over year.

Financial Update (As of June 30, 2025)

Allstate exited the second quarter with a cash balance of $995 million, which rose from the 2024-end level of $704 million. Total assets of $115.9 billion increased from $111.6 billion at 2024-end.

Debt amounted to $8.1 billion, stable from the 2024-end figure.

Total equity of $24 billion advanced from the 2024-end level of $21.4 billion.

Book value per common share was $82.40 as of June 30, 2025, which climbed 32.6% year over year.

ALL’s Zacks Rank & Key Picks

ALL currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Virtu Financial Inc VIRT, Marex Group PLC MRX and Acadian Asset Management Inc. AAMI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Virtu Financial’s current-year earnings of $4.52 per share has witnessed four upward revisions in the past 30 days against none in the opposite direction. Virtu Financial beat earnings estimates in each of the trailing four quarters, with the average surprise being 20.2%. The consensus estimate for current-year revenues is pegged at $1.9 billion, implying 15.9% year-over-year growth.

The Zacks Consensus Estimate for Marex Group’s current-year earnings of $3.52 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Marex Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.3%. The consensus estimate for current-year revenues is pegged at $1.8 billion, calling for 12.4% year-over-year growth.

The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $3.18 per share, implying 15.2% year-over-year growth. In the past 30 days, Acadian Asset Management has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $560.8 million, calling for 10.9% year-over-year growth.

This article originally published on Zacks Investment Research (zacks.com).

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