Allstate insurance office in downtown Baltimore, MD. October 29, 2022. Photo: Diego M. Radzinschi/ALM
Despite catastrophic losses attributed to the California wildfires and March wind events, Allstate reported a year-over-year revenue increase for the first quarter of 2025.
Total revenues reached $16.5 billion during the period, marking an increase of $1.2 billion or 7.8% from the same time last year.
“Net income was $566 million, lower than last year, as a record $3.3 billion of gross catastrophe losses were partially offset by $1.1 billion of reinsurance recoveries in the quarter,” said Tom Wilson, chair, president and CEO of The Allstate Corporation.
“Transformative Growth gained momentum with strong underlying insurance profitability and sequential growth in auto and homeowners insurance policies,” he added. “Proactive investment management supported enterprise risk and return objectives including the generation of $854 million of net investment income for the quarter. Protection Plans continues to grow in the U.S and internationally with revenues up 16.4% over the prior year. Allstate has the capabilities, brand, distribution and resources to increase Property-Liability market share and expand protection provided to customers.”
Other key takeaways…
- A 15.6% increase in Allstate brand homeowners’ insurance average gross written premium compared to the prior year quarter was due to approved rate increases and inflation in insured home replacement costs.
- Gross catastrophe losses of $2.8 billion in the quarter, mostly attributed to California wildfires and March wind events, were offset by $1.0 billion of recoveries from the comprehensive reinsurance program that reduces capital requirements by lowering earnings volatility. Net losses of $1.8 billion were $1.3 billion greater than the prior year.
- The recorded homeowners insurance combined ratio of 112.3 was 30.2 points above the first quarter of 2024, reflecting increased catastrophe losses, partially offset by favorable underlying loss performance.
- Net income applicable to common shareholders was $566 million in the first quarter of 2025 compared to $1.2 billion in the prior year quarter, primarily driven by elevated catastrophe losses in the quarter.
- Adjusted net income* was $949 million, or $3.53 per diluted share, compared to $1.4 billion in the prior year quarter.
- Adjusted net income return on common shareholders equity* of 23.7%, significantly higher than prior year.
On Wall Street, Allstate shares are up roughly 3.76% the last month and nearly 3.8% higher the last three months. Year-to-date, shares have risen roughly 3.87%. Over the last year, shares are up almost 18%.
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