Allstate Q3 Earnings Beat Estimates on Rising Investment Income

The Allstate Corporation ALL reported a third-quarter 2025 adjusted net income of $11.17 per share, which beat the Zacks Consensus Estimate by 36.2%. The bottom line rose significantly from $3.91 a year ago.Operating revenues advanced 3.8% year over year to $17 billion but missed the consensus mark by 2%.The better-than-expected third-quarter earnings benefited from growth in premiums, improved investment income and decreased costs and expenses. However, the upside was partly offset by the declining adjusted net income from the protection services unit.The Allstate Corporation Price, Consensus and EPS Surprise The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation QuoteKey Takeaways From Allstate’s Q3 ResultsProperty and casualty insurance premiums increased 6.4% year over year to $15.3 billion. Net investment income was $949 million, which rose 21.2% year over year, backed by a growing market-based portfolio and improved performance-based income. The metric beat the Zacks Consensus Estimate of $832 million. Market-based investment income increased 10.2% year over year to $780 million in the quarter under review.Total costs and expenses declined 13.5% year over year to $13.2 billion, lower than our estimate of $15.2 billion. The year-over-year decline was due to decreased property and casualty insurance claims and claims expenses, as well as accident, health and other policy benefits. Catastrophe losses decreased to $558 million from $1.7 billion a year ago.Allstate’s pretax income was $4.8 billion in the third quarter, significantly up from the year-ago figure of $1.4 billion.As of Sept. 30, 2025, total policies in force were 209.5 million, which grew 3.8% year over year.ALL’s Segmental PerformancesThe Property-Liability segment’s premiums earned advanced 6.1% year over year to $14.5 billion, attributable to higher average premiums from auto and homeowners insurance and policies in force. Yet, the metric fell short of the Zacks Consensus Estimate by 1.5%. Underwriting income in the unit amounted to $2.9 billion compared to the prior-year quarter’s figure of $495 million. The underlying combined ratio improved 450 basis points year over year to 78.7%.The Protection Services segment recorded revenues of $902 million, which advanced 9.7% year over year, aided by Allstate Protection Plans and Roadside businesses. Adjusted net income decreased to $46 million from $58 million a year ago.Financial Update (As of Sept. 30, 2025)Allstate exited the third quarter with a cash balance of $931 million, which rose from the 2024-end level of $704 million. Total assets of $120.4 billion increased from $111.6 billion at 2024-end.Debt amounted to $8.1 billion, stable from the 2024-end figure.Total equity of $27.5 billion advanced from the 2024-end level of $21.4 billion.Book value per common share was $95.95 as of Sept. 30, 2025, which climbed 36.4% year over year.ALL’s Zacks Rank & Key PicksALL currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Finance space are T. Rowe Price Group, Inc. TROW, AllianceBernstein Holding L.P. AB and Affiliated Managers Group, Inc. AMG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for T. Rowe Price’s current-year earnings of $9.75 per share has witnessed five upward revisions in the past seven days against none in the opposite direction. T. Rowe Price beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 4%. The consensus estimate for current-year revenues is pegged at $7.2 billion, implying 2.1% year-over-year growth.The Zacks Consensus Estimate for AllianceBernstein’s current-year earnings of $3.36 per share has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. AllianceBernstein beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 6.5%. The consensus estimate for current-year revenues is pegged at $3.6 billion, calling for 1.2% year-over-year growth.The Zacks Consensus Estimate for Affiliated Managers Group’s current-year earnings is pegged at $24.73 per share, implying 15.8% year-over-year growth. In the past seven days, Affiliated Managers Group has witnessed two upward estimate revisions against one in the opposite direction. The consensus mark for the current-year revenues is pegged at $2.1 billion, calling for 0.7% year-over-year growth.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report The Allstate Corporation (ALL): Free Stock Analysis Report AllianceBernstein Holding L.P. (AB): Free Stock Analysis Report Affiliated Managers Group, Inc. (AMG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks