Allstate stock weighs Q3 growth against rising catastrophe losses

Allstate reported stronger policy growth but weaker reported profit for the third quarter on November 4, as catastrophe losses rose sharply. The insurer said total revenue reached 17.348 billion US dollars, up 0.5 percent from the prior-year quarter, while net income attributable to common shareholders fell to 2.050 billion US dollars from 3.720 billion. The figures come from Allstate's Q3 2026 earnings release.

Premium growth faces claims pressure

Adjusted net income was 2.493 billion US dollars, or 9.76 US dollars per diluted share, compared with 2.986 billion US dollars a year earlier. Allstate attributed the decline in reported earnings primarily to higher catastrophe losses, the absence of a prior-year gain from the sale of its group health business and net losses on investments and derivatives.

Property-Liability earned premiums increased 3.8 percent to 15.086 billion US dollars, while written premiums rose 2.5 percent to 16.020 billion US dollars. Policies in force in the segment grew 3.3 percent, with auto policies up 3.4 percent and homeowners policies up 3.3 percent. New homeowners business increased 10.2 percent from the prior-year quarter.

The growth came with a higher claims burden. The Property-Liability combined ratio rose to 86.6 from 80.1, with the deterioration mainly linked to a 7.1-point increase in catastrophe losses. Underwriting income fell to 2.020 billion US dollars from 2.890 billion. Homeowners catastrophe losses reached 1.330 billion US dollars, compared with 479 million a year earlier, pushing the homeowners combined ratio to 89.5 from 71.5.

Services and investments add support

Allstate's auto business remained profitable, although its recorded combined ratio increased to 83.2 from 82.0. The company said its newer Affordable, Simple, Connected products were available in 46 states for auto insurance and 42 states for homeowners insurance at the end of the quarter.

Protection Services revenue rose 6.9 percent to 964 million US dollars, led by Protection Plans and Roadside. Adjusted net income in the segment increased by 18 million US dollars to 64 million. Arity revenue increased 11.8 percent to 76 million US dollars. Allstate also said Arity acquired INRIX in October and agreed in November to buy the remaining ownership of Replica, with closing expected before the end of 2026.

Net investment income increased 24 percent to 1.177 billion US dollars as yields and premium balances supported returns. However, Allstate recorded net losses of 545 million US dollars on investments and derivatives, compared with gains of 252 million US dollars in the prior-year quarter.

Allstate stock traded at 232.30 euros on Lang & Schwarz at 12:45 CET on Wednesday, November 11, 2026.

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