The Allstate Corporation

New York Stock Exchange
Back to all articles
Very Bullish +80

Allstate’s Q1’26 revenue hits $16.9bn as strong underwriting drives $2.4bn profit

📊 Allstate reported total revenues of $16.9 billion for Q1 2026, representing an increase of $489 million compared to the same quarter in 2025.

💰 Net income rose significantly to $2.4 billion, driven largely by strong underwriting results across its business segments.

📈 The company's policies in force grew to 212 million in Q1 2026, reflecting increased adoption of auto and homeowners insurance as well as Protection Plans.

💼 Investment income saw a 9.8% increase in the first quarter, fueled by portfolio expansion and higher yields on fixed income assets.

🚗 In the Property-Liability segment, earned premiums reached $14.8 billion, marking a 5.5% year-over-year rise primarily due to growth in homeowners business.

✅ Underwriting income for Property-Liability surged to $2.7 billion from just $360 million in Q1 2025, highlighting substantial operational improvement.

🚙 Allstate Protection Auto executed its "Transformative Growth" strategy with strong margins and consistent new business growth across distribution channels.

⚖️ While written premiums for auto were broadly flat due to offsetting gains and lower average premiums, earned premiums still increased by 2.1%.

📉 The auto combined ratio improved to 81.9 in Q1 2026, showing a 9.4-point year-over-year improvement driven largely by prior-year reserve releases.

💸 Reserve adjustments reduced liabilities by $838 million as the company lowered estimated claims costs for accident years 2023 through 2025.

🏠 Allstate Protection Homeowners saw a marked underwriting turnaround with profit jumping to $685 million from a $451 million loss in the prior-year quarter.

🌪️ The homeowners segment improvement was mainly attributed to lower catastrophe losses compared to 2025, which included major events like California wildfires.

📝 Written premiums for homeowners increased by 8.3%, while earned premiums rose even faster at 13.9%, supported by higher average premiums and policy growth.

💲 Average gross written premiums for branded homeowners insurance grew by 6.8% due to continued rate actions and rising home replacement costs.

📉 The combined ratio for the homeowners segment improved to 83.5, a 28.8-point year-over-year gain driven by reduced catastrophe losses and stronger premium growth.

💥 Catastrophe losses for the homeowners segment totaled $1 billion in Q1 2026, which was down $778 million from the prior year.

Bullish Signals
  • Allstate reported total revenues of $16.9 billion for Q1 2026, representing an increase of $489 million compared to the same quarter in 2025.
  • Net income surged to $2.4 billion, driven by strong underwriting results and a policy count that reached 212 million in force.
  • Investment income grew by 9.8% in the first quarter of 2026, fueled by portfolio expansion and higher fixed-income yields.
  • Property-Liability earned premiums increased to $14.8 billion, marking a 5.5% year-over-year rise primarily due to growth in homeowners insurance.
  • Underwriting income for the Property-Liability segment jumped significantly to $2.7 billion from just $360 million in Q1 2025.
  • Allstate Protection Auto continued its 'Transformative Growth' strategy with strong margins and ongoing new business growth across all distribution channels.
  • Earned premiums in the auto segment increased by 2.1%, maintaining revenue growth despite flat written premiums.
  • The auto combined ratio improved substantially to 81.9, reflecting a major 9.4-point improvement from the prior year.
  • Allstate Protection Homeowners profit rebounded sharply to $685 million in Q1 2026, recovering from a loss of $451 million in the same quarter the previous year.
  • Homeowners underwriting performance was bolstered by lower catastrophe losses of $1 billion compared to the prior year, resulting in an 83.5 combined ratio.
  • Written premiums in homeowners insurance rose 8.3% while earned premiums jumped 13.9%, supported by a 6.8% increase in average gross written premiums.
  • The significant improvement in catastrophe losses helped reduce liabilities by $838 million through prior-year reserve releases.
Risk Factors
  • Allstate reported that underwriting income in the Property-Liability segment increased significantly to $2.7 billion, which is primarily due to prior-year reserve releases rather than current operational performance.
  • The company disclosed that these reserve adjustments reduced liabilities by $838 million, reflecting lower estimated claims costs for accident years 2023–2025.
  • In the Allstate Protection Auto segment, written premiums were broadly flat year-on-year because gains from higher policies in force were offset by lower average premiums.
  • The company noted that the improvement in the auto combined ratio to 81.9 was largely driven by prior-year reserve releases and not solely by improved risk management or claims prevention.
  • In the Allstate Protection Homeowners segment, underwriting performance improved markedly mainly because of lower catastrophe losses compared with 2025, which included significant events such as California wildfires.
  • Despite higher home replacement costs reflected in average gross written premiums increasing by 6.8%, the improvement in the homeowners combined ratio is attributed to lower catastrophe losses totaling $1 billion, down from a prior year that faced significant weather-related risks.
Full Analysis
Allstate Corporation reported strong first-quarter 2026 financial results, posting total revenues of $16.9 billion, an increase of $489 million compared to the same quarter in 2025. Net income climbed to $2.4 billion, a significant rise from the prior year, driven by robust underwriting performance and strong investment returns that grew by 9.8% due to portfolio expansion and higher fixed income yields. The insurer's policies in force expanded to 212 million, reflecting continued growth in its auto and homeowners insurance lines as well as Protection Plans. In the Property-Liability segment, earned premiums reached $14.8 billion, up 5.5% year-over-year, fueled primarily by increased homeowners premiums and a growing book of business. Underwriting income for this segment surged to $2.7 billion from just $360 million in the previous year's quarter. This segment includes both Allstate Protection Auto and Allstate Protection Homeowners divisions, which showed mixed but generally positive trends. In the auto sector, written premiums remained flat as growth in policies was offset by lower average premiums, though earned premiums still rose 2.1%. The combined ratio improved to 81.9, largely aided by an $838 million release of prior-year reserves for accident years through 2025. Allstate Protection Homeowners delivered marked improvement with underwriting profit reaching $685 million after a loss of $451 million in the prior-year quarter. This turnaround was largely attributed to lower catastrophe losses, specifically down significantly from events like California wildfires seen in 2025. Written premiums in homeowners insurance grew 8.3%, while earned premiums jumped 13.9% due to higher rates and increased policies in force. Average gross written premiums rose 6.8% from rate actions and inflation-driven home replacement costs. The combined ratio improved to 83.5, reflecting $1 billion in catastrophe losses, which was down $778 million from the previous year.