Allstate tops Q3 profit estimates and beats on revenue

Allstate (ALL) said on Nov. 4 that its adjusted profit for the third quarter of 2026 was $9.76 per diluted share, topping the $6.97 consensus estimate. Revenue of $17.35 billion also beat the $16.22 billion estimate, the company said in a regulatory filing.

Net income applicable to common shareholders was $2.05 billion, or $8.03 per diluted share, down 44.8% from a year earlier. The company attributed the drop mainly to higher catastrophe losses, a gain on the sale of its group health business in 2025 and net losses on investments and derivatives.

Here's how the company did:

• Adjusted EPS: $9.76 vs. $11.17 a year earlier, against the $6.97 consensus estimate
• Revenue: $17.35 billion, up 0.5% from a year earlier, against the $16.22 billion consensus estimate
• Net income applicable to common shareholders: $2.05 billion, down 44.8% from a year earlier
• Adjusted net income: $2.49 billion, down 16.2% from a year earlier

Tom Wilson, who leads The Allstate Corporation, said the company’s results were strong. “Allstate delivered excellent financial results and increased Property-Liability growth in the third quarter,” said Tom Wilson, who leads The Allstate Corporation.

Total policies in force reached 217.6 million, up 3.9% from a year earlier.

Catastrophe losses and combined ratio

Property-Liability earned premiums rose 3.8% to $15.10 billion in the quarter. The recorded combined ratio was 86.6, up 6.5 points from the prior year quarter, mainly because catastrophe losses rose to $1.65 billion from $558 million.

The underlying combined ratio was 80.5, compared with 78.7 a year earlier. Underwriting income in Property-Liability fell 30.1% to $2.02 billion.

Auto policies in force grew 3.4%, and homeowners policies in force grew 3.3%. Homeowners premiums earned rose 11.5%, reflecting higher average premiums and policy growth.

Protection Services

Revenue in Protection Services rose 6.9% to $964 million, led by Protection Plans and Roadside. Adjusted net income for the segment was $64 million, up $18 million from a year earlier.

Arity agreed in November to acquire the remaining ownership of Replica, a mobility data and technology company. The company said the deal is expected to close before the end of 2026, subject to customary closing conditions. In October, Arity acquired INRIX, Inc., a transportation intelligence and mobility analytics provider.

Investments and capital returns

Net investment income rose to $1.18 billion, up $228 million from a year earlier, reflecting higher market-based and performance-based results. The company reported a total return of negative 2.1% on its investment portfolio for the quarter.

Allstate returned about $1.5 billion to shareholders in the third quarter through share repurchases and dividends. As of Sept. 30, $1.3 billion remained under the $4.0 billion share repurchase authorization it began in February 2026.

Chris Lown, Executive Vice President and Chief Financial Officer, said the company was balancing growth and returns. “Allstate continues to generate strong financial results while investing to profitably grow the business,” said Chris Lown, Executive Vice President and Chief Financial Officer.