Key Highlights

  • Allstate (NYSE:ALL) posted third-quarter Net Income applicable to common shareholders of USD 2.05 billion, down USD 1.67 billion year over year, as catastrophe losses and Investment losses outweighed higher premiums.
  • Catastrophe losses rose to USD 1.65 billion from USD 558 million, lifting the Property-Liability combined ratio to 86.6% from 80.1%; catastrophes contributed 10.9 points against 3.8.
  • Nine-month net income increased USD 1.36 billion to USD 7.72 billion, and Book Value per diluted share reached USD 120.23, up 25.3% from September 30, 2025.
  • Homeowners Underwriting income dropped to USD 452 million from USD 1.11 billion, while auto underwriting income came in at USD 1.62 billion against USD 1.73 billion.

Catastrophe Costs Reshape an Otherwise Solid Underwriting Base

Allstate (NYSE:ALL) lodged its third-quarter 10-Q on November 4, 2026. Total revenues inched up 0.5% to USD 17.35 billion, with premiums earned of USD 15.09 billion compared with USD 14.53 billion. Net income applicable to common shareholders fell USD 1.67 billion to USD 2.05 billion, which the filing attributes to heavier catastrophe losses, a 2025 gain on selling the group health Business that does not repeat, and net losses on investments and derivatives. Catastrophe losses of USD 1.65 billion compared with USD 558 million. Reserve releases of USD 753 million, versus USD 424 million, cushioned part of the blow. Across nine months, Property-Liability underwriting income reached USD 6.69 billion against USD 4.53 billion, and the combined ratio was 85.1% versus 89.4%.

Homeowners Margin Shrinks as Auto Holds Up

Property-Liability underwriting income totaled USD 2.02 billion, down from USD 2.89 billion. Allstate Protection auto contributed USD 1.62 billion, homeowners USD 452 million (down from USD 1.11 billion), and specialty lines USD 52 million. The loss ratio rose to 64.6% from 58.3%, and the expense ratio edged to 22.0% from 21.8%. Premiums written reached USD 16.02 billion against USD 15.63 billion. Net investment income grew USD 228 million to USD 1.18 billion. Policies in force rose to 39.32 million from 38.06 million, including 26.20 million auto and 7.90 million homeowners. Protection Services, which includes Arity, lifted adjusted net income to USD 64 million from USD 46 million.

Buybacks, Book Value and the Arity Acquisitions

Over nine months Allstate (NYSE:ALL) repurchased 13 million shares, equal to 4.9% of those outstanding at the end of 2025, for USD 2.91 billion, leaving USD 1.35 billion under a USD 4.00 billion authorization that runs to February 29, 2028. Investments totaled USD 87.38 billion and shareholders' Equity USD 32.31 billion, after USD 816 million of common dividends. Twelve-month return on average common equity was 41.3%. In October 2026 Arity acquired most of the Assets of INRIX, and in November it agreed to buy the rest of Replica, with closing expected before the end of 2026. USD 550 million of Debt matures in December 2026, and the filing flags oil prices, tariffs and affordability as claims-cost pressures.

Where Things Stand

Yes, but through catastrophes rather than weak underwriting. Allstate (NYSE:ALL) saw its combined ratio rise because catastrophe losses more than doubled, while reserve releases grew and auto underwriting income stayed above USD 1.6 billion. Third-quarter net income fell to USD 2.05 billion, yet nine-month income and book value per share were higher. Next markers are catastrophe activity, homeowners margins, the Replica closing and the pace at which the remaining USD 1.35 billion buyback authorization is used.