Allstate reported sharply higher Q2 2025 earnings as auto underwriting margins improved and rate pressure moderated.
The insurer said revenue rose 5.8% year-over-year to $16.6 billion, with net income of $2.1 billion. Adjusted net income was $1.6 billion, or $5.94 per diluted share, up from $429 million a year earlier. Property liability earned premiums increased 7.5% to $14.3 billion, and the recorded property liability combined ratio improved 10 points to 91.1.
Auto insurance results were the swing factor. For the segment, Allstate’s combined ratio fell to 86.0 from 95.9 a year ago as higher average earned premiums outpaced expenses and loss costs. Underwriting income in auto reached $1.33 billion versus $370 million a year earlier. Favorable prior-year non-catastrophe reserve re-estimates contributed $415 million, a 4.3-point benefit to the combined ratio.
“Allstate had strong operating and financial performance in the second quarter while executing our growth strategies,” said Tom Wilson, who leads The Allstate Corporation, in a statement. “In addition to strong financial results, we are creating shareholder value by increasing growth and proactively managing investments and capital.”
Allstate said rate actions in auto translated to just a 0.4% annualized premium impact in Q2 2025, noting “continued moderation in loss cost trends.” Policies in force began to grow, rising 0.5% year over year despite reductions in New York and New Jersey; excluding those two states — where regulatory requests are pending — policy growth was 1.9%. New business increased 24.8%.
Those company-level signals track with broader market data showing cooling insurance inflation. The U.S. CPI for motor vehicle insurance was up 6.4% year over year in April 2025 — far below the 22.6% pace in April 2024 — reflecting improved underwriting and moderating loss costs across the sector.
