Allstate Q3 Net Income Falls to $2.1 Billion as Catastrophe Losses Jump; Policies in Force Climb
Allstate kept growing its personal-lines book in the third quarter, but a surge in catastrophe claims pulled underwriting income and GAAP profit well below last year’s levels.
The Northbrook, Illinois-based insurer reported consolidated revenues of $17.3 billion for the quarter ended Sept. 30, 2026, up 0.5% from $17.3 billion a year earlier, according to its earnings release filed with an 8-K Wednesday. Net income applicable to common shareholders was $2.1 billion, or $8.03 per diluted share, compared with $3.7 billion a year ago. Adjusted net income was $2.5 billion, or $9.76 per diluted share, down from $3.0 billion.
Chair Tom Wilson said earnings reflected strong underlying auto and homeowners margins, higher investment income and Protection Services growth, even as catastrophe losses rose. Total policies in force reached 217.6 million, up 3.9%. Property-Liability policies in force rose 3.3%.
Catastrophes and underwriting
Property-Liability underwriting income was $2.0 billion, down from $2.9 billion. Catastrophe losses were $1.65 billion, versus $558 million a year earlier. The recorded combined ratio was 86.6, compared with 80.1; the underlying combined ratio was 80.5, versus 78.7.
Auto insurance policies in force grew 3.4%, with new business up 6.3%. Homeowners underwriting income fell to $452 million from $1.1 billion as catastrophe losses in that line hit $1.3 billion, versus $479 million. The homeowners combined ratio was 89.5, versus 71.5.
Net investment income was $1.2 billion, up $228 million on higher market-based and performance-based results. Management also highlighted Protection Plans’ international growth and expansion of Allstate’s Large Language Intelligent Ecosystem (ALLIE) for service calls.
Why it matters
For retail investors, Allstate’s quarter splits into two stories: policy growth and underlying underwriting remain constructive, while the GAAP and adjusted profit step-down is mostly a catastrophe-year comparison against an unusually light year-earlier quarter that also included a group-health sale gain. The investment-income lift and 3%-plus policy growth are the forward-looking threads.
By the numbers
- Q3 revenues: $17.3 billion, up 0.5%
- Net income: $2.1 billion, or $8.03 per share
- Adjusted net income: $2.5 billion, or $9.76 per share
- Catastrophe losses: $1.65 billion (vs. $558 million)
- Property-Liability underwriting income: $2.0 billion
- Property-Liability policies in force: up 3.3%
Sources
- Allstate Form 8-K with third-quarter 2026 financial results, filed Nov. 4, 2026 (accession 0000899051-26-000156)
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