The Allstate Corporation (ALL) - Stock Report

The latest reported earnings quarter is fiscal Q1 2026, reported on 29 April 2026; the 18 June 2026 May monthly catastrophe and policies-in-force release is a post-quarter update only for catastrophe losses and Allstate Protection policies in force. In Q1 2026 only, Allstate reported consolidated revenues of $16.941bn, net income applicable to common shareholders of $2.428bn, reported diluted EPS of $9.25, adjusted net income of $2.797bn and adjusted net income per diluted share of $10.65, versus $566m of common net income and $3.53 of adjusted net income per diluted share in Q1 2025. For Q4 2025 only, the company bridge reported diluted EPS of $14.37 and adjusted net income per diluted share of $14.31; the $14.31 figure is adjusted, not the reported EPS figure. For FY 2025, revenues were $67.685bn, reported diluted EPS was $38.06, adjusted net income per diluted share was $34.83 and adjusted net income ROE was 38.3%; reported FY EPS is higher than adjusted EPS because adjusted earnings exclude disposition gains and mark/investment items, including the $1.616bn gain on disposition that is not underwriting cash economics. The latest twelve-month adjusted net income ROE stepped up to 44.4% at 31 March 2026, but it is not yet a clean normalized run-rate because reserve effects, catastrophe volatility and investment marks still matter.

The key macro issue is not catastrophe volatility in isolation, but whether weather losses and auto severity stay inside Allstate’s pricing and reserve assumptions: if they do, premiums can convert into underwriting income and book-value growth; if they do not, the same growth can become weaker combined ratios, tighter capital return and a lower justified P/BV multiple.

Allstate sells auto, homeowners and related protection products, then invests the insurance float created by premiums collected before claims are paid. The core asset is Allstate Protection: in FY 2025 it generated $57.682bn of insurance premiums, and Allstate reports its segment result as $8.694bn of underwriting income. Protection Services is reported on adjusted net income, not underwriting income, and added a smaller embedded-warranty and services layer with $3.550bn of total revenues and $218m of adjusted net income.

Property-Liability is the value bridge because small changes in loss ratio, catastrophe losses and reserve development move billions of dollars of underwriting income. Protection Services gives distribution breadth through Protection Plans, Roadside, Dealer Services, Identity Protection and Arity, but it is not large enough to re-rate the company if auto and homeowners underwriting loses rate adequacy. The investment portfolio, $83.237bn at 31 December 2025 and $85.160bn at 31 March 2026, is the float engine that supports book value and net investment income, not excess cash for enterprise-value math. The Form 10-Q for fiscal Q1 2026, period ended 31 March 2026, is the latest interim cross-check: Allstate Protection underwriting income was $2.659bn, Run-off Property-Liability underwriting loss was $1m, Protection Services adjusted net income was $47m, Allstate Health and Benefits adjusted net income was zero and Corporate adjusted net loss was $59m. Source C reconciles the taxonomy: after the 2025 EVB and group health dispositions, Allstate Health and Benefits is no longer a reportable segment, but the Q1 2026 Form 10-Q still shows a recast line with $0 of Q1 2026 revenue and $0 of adjusted net income, versus $474m of revenue and $34m of adjusted net income in Q1 2025; retained individual health is non-reportable and included in all other.

Management is trying to convert the post-2022 repair cycle into growth: total policies in force reached 212.052m at 31 March 2026, and Allstate Protection policies in force reached 38.576m, up from 37.712m a year earlier. The strategic test is whether broader distribution, more affordable products and higher new business can add policies without giving back the underwriting margin created by prior rate increases.