Key Highlights

  • Third quarter EPS was USD 9.76 against an estimate of USD 6.89, while GAAP diluted EPS was USD 8.03.
  • Total revenues were USD 17.35 billion, up 0.5% from the prior-year quarter, with premiums earned of USD 15.09 billion.
  • Catastrophe losses were USD 1.65 billion against USD 558 million, and the combined ratio was 86.6 against 80.1.
  • The company repurchased 13 million shares for USD 2.91 billion in nine months, with USD 1.35 billion remaining authorized.

What did USD 1.65 billion of catastrophe losses mean for Allstate Corporation (NYSE:ALL) in the third quarter? Net Income applicable to common shareholders was USD 2.05 billion, against USD 3.72 billion a year earlier, and the company tied the change to higher catastrophe losses, a 2025 gain on the sale of its group health Business and net Investment and derivative losses. EPS was USD 9.76 against an estimate of USD 6.89, and GAAP diluted EPS was USD 8.03 against USD 13.95 in 2025.

Catastrophes, Reserves and the Combined Ratio

Catastrophe losses rose to USD 1.65 billion from USD 558 million, which the company attributed to two large wind and hail events and more frequent smaller events. The Property-Liability combined ratio was 86.6 against 80.1, with catastrophe losses adding 10.9 points against 3.8 points. Prior year reserve releases lowered the ratio by 5.0 points, against 2.9 points a year earlier. Underwriting income was USD 2.02 billion against USD 2.89 billion.

Premiums earned were USD 15.09 billion against USD 14.53 billion, and premiums written were USD 16.02 billion against USD 15.63 billion. Total revenues were USD 17.35 billion.

Product Lines Behind the Ratio

Homeowners carried most of the catastrophe exposure. The homeowners loss ratio was 67.2 against 48.5, with catastrophes adding 30.8 points against 12.3. The auto loss ratio was 61.6 against 60.6, and the company said development on claims reported in the first half of 2026 lowered the ratio by 1.6 points. It also noted that estimated report year 2026 claim severity for the Allstate Brand rose for major coverages, reflecting inflationary pressures.

Specialty lines posted a loss ratio of 68.5 against 75.1, and commercial lines was 32.7 against negative 19.2, which the company linked to lower prior year reserve releases. Protection Services adjusted net income was USD 64 million against USD 46 million.

Investments and Capital Allocation

Net investment income was USD 1.18 billion, up USD 228 million, which the company attributed to both market-based and performance-based results. Investments totaled USD 87.38 billion at September 30 against USD 83.24 billion at year end 2025. Shareholders' Equity was USD 32.31 billion, and Book Value per diluted common share was USD 120.23 against USD 95.95 a year earlier.

Return on average common shareholders' equity for the 12 months ended September 30 was 41.3%, against 37.2%. In the first nine months the company paid common dividends of USD 816 million, repurchased 13 million shares for USD 2.91 billion, and declared a quarterly common Dividend of USD 1.08 payable October 1. The board's USD 4.00 billion repurchase authorization runs to February 29, 2028.

Key Figures Side by Side

EPS of USD 9.76 sits alongside GAAP diluted EPS of USD 8.03, a combined ratio of 86.6 and catastrophe losses of USD 1.65 billion.

Management named a few items. In October, its Arity Subsidiary acquired substantially all Assets of INRIX, a transportation intelligence provider, and in November Arity agreed to buy the remaining ownership of Replica, a transaction scheduled to close before the end of 2026 subject to customary conditions. The share repurchase authorization has USD 1.35 billion remaining and a February 29, 2028 deadline.