Allstate Corp. reported Q1 2025 net income of $566 mn attributable to common shareholders, a 52.4% decline from the previous year.
The drop resulted primarily from $3.3 bn in gross catastrophe losses—the highest quarterly total in the company’s history. Reinsurance recoveries totaled $1.1 bn, reducing the net catastrophe loss to $2.2 bn.
The insurer’s property-liability combined ratio increased to 97.4, up from 93.0 in Q1 2024. Property-liability underwriting income fell by nearly 60% year-over-year to $360 mn. Despite the strain from wildfires in California and severe March windstorms, core operating metrics showed gains.
Property-liability written premiums rose 8.5% to $14.3 bn, driven by higher average premiums. The underlying combined ratio, excluding catastrophe and prior-year reserve changes, improved by 3.8 points to 83.1.
The auto insurance segment recorded a 132.5% increase in underwriting income to $816 mn. Its combined ratio improved by 4.7 points to 91.3, reflecting ongoing recovery after prior years of rising claim expenses.
The homeowners segment posted a $451 mn underwriting loss in Q1 2025, compared with a $564 mn profit in the prior-year period. Its combined ratio rose sharply to 112.3 from 82.1.
However, written premiums in the segment grew 20.1%, supported by higher average premiums and a 2.5% increase in policies in force.
Allstate’s strategy, operational excellence and risk management practices generated strong first quarter results, despite unprecedented severe weather.
Tom Wilson, chair, president and CEO of Allstate
Tom Wilson noted that the $2 bn sale of Allstate’s employer voluntary benefits business on April 1, along with $854 mn in net investment income, further improved the firm’s capital position.
