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The Allstate Corporation ALL reported a first-quarter 2025 adjusted net income of $3.53 per share, which outpaced the Zacks Consensus Estimate by 56.2%. However, the bottom line plunged 31.2% year over year.(See the Zacks Earnings Calendar to stay ahead of market-making news.)
Operating revenues advanced 8.9% year over year to $16.8 billion but missed the consensus mark by 1.9%.
The better-than-expected first-quarter earnings benefited from growth in premiums and improved investment income. However, the upside was partly offset by elevated catastrophe losses due to California wildfiresand increased costs and expenses.
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 Q1 Results
Property and casualty insurance premiumsincreased 8.8% year over year to $14.7 billion. Net investment income was $854 million, which rose 11.8% year over year, resulting from repositioning into higher-yielding fixed-income securities and growing portfolio. The metric surpassed the Zacks Consensus Estimate of $821.4 million. Market-based investment income witnessed a significant jump in the quarter under review.
Total costs and expenses escalated 14% year over year to $15.7 billion, higher than our estimate of $15.5 billion. The year-over-year rise was due to increased property and casualty insurance claims and claims expense, and operating costs and expenses. Catastrophe losses escalated to $2.2 billion from $731 million a year ago, due to California wildfires and March wind events.
Allstate’s pretax income was $719 million in the first quarter, down from the year-ago figure of $1.2 billion.
As of March 31, 2025, total policies in force were 211 million, which grew 6.7% year over year.
ALL’s Segmental Performances
The Property-Liability segment’s premiums earned advanced 8.7% year over year to $14 billion, attributable to higher average premiums. Yet, the metric fell short of the Zacks Consensus Estimate by 1%. Underwriting income in the unit amounted to $360 million compared with the prior-year quarter’s figure of $898 million. The underlying combined ratio improved 380 basis points year over year to 83.1%.
The Protection Services segment recorded revenues of $860 million, which advanced 14.2% year over year, aided by Allstate Protection Plans and Arity businesses. Adjusted net income marginally increased to $55 million from $54 million a year ago.
The Allstate Health and Benefits segment’s premium and contract charges improved 1.9% year over year to $487 million and missed the Zacks Consensus Estimate by 1%. Adjusted net income of $30 million dropped 46.4% year over year. The Employer Voluntary Benefits business divestment closed on April 1.