Allstate NYSE: ALL executives pointed to what CEO Thomas J. Wilson called “excellent operating results” in the first quarter of 2026, highlighting improved underwriting performance, higher investment income, and increased capital returns to shareholders. Management also emphasized that the company’s growth strategy relies on a broad set of competitive levers beyond price, including lower expenses, analytics-driven underwriting, expanded product offerings, and a multi-channel distribution model.
First-quarter results and operating performance
Wilson said total revenue rose to $16.9 billion, up 3% from the first quarter of 2025, while investment income increased nearly 10% to $938 million. The company reported a property-liability combined ratio of 82.0% and an underlying combined ratio of 80.3%, which Wilson said was a 2.8-point improvement from the prior year.
Net income was $2.4 billion, and adjusted net income was $2.8 billion, or $10.65 per diluted share, Wilson said. Total policies in force increased 2.5%, while property-liability policies in force grew 2.3%. Wilson added that net income return on equity was 48.4% over the last 12 months.
Growth strategy: competing on more than price
Wilson framed the quarter around Allstate’s strategy of increasing personal property-liability market share while expanding the “protection provided to customers.” He argued that growth is driven by more than pricing actions, pointing to “lower expenses and effective claims processes,” along with “sophisticated analytics, new products, expanded benefits, and bundled offerings.”
Wilson said the Allstate brand’s auto and home offerings are now available in 45 and 36 states, respectively, while Custom 360 Auto and Homeowners products for independent agents are available in 40 states. He also cited the addition of “free Allstate Identity Protection” as an example of expanding benefits to shift customer focus “beyond price.”
According to Wilson, all distribution channels—Allstate agents, independent agents, call centers, and online—posted increases in new business in the first quarter, and the total was “a record.”
Market share and underwriting: auto and homeowners
Chief Operating Officer Mario Rizzo said Allstate increased auto insurance market share in 29 states in 2025, representing 57% of nationwide premiums. In those states, policies in force increased 4.3% year over year and outpaced vehicle registration growth. Rizzo said policies in force declined 0.5% in the remaining states, which he attributed largely to “two large states where we have intentionally been reducing share because of profitability challenges.”
Rizzo also pointed to homeowners share gains, saying market share grew in 83% of the U.S. market, with policies in force growth of 4.1% in 41 states during 2025. He called homeowners “a competitive advantage and growth opportunity.”
Rizzo noted that during the first quarter of 2026, Allstate implemented rate changes in 39 states that included “a mix of both rate increases and decreases,” resulting in a “net overall neutral implemented rate impact across the book.”
Property-Liability President Jess Merten said auto policies grew 2.6% and homeowners policies grew 2.5%, contributing to 2.3% growth in total property-liability policies in force and written premiums. Earned premiums increased 5.5%, and underwriting income for the segment totaled $2.7 billion for the quarter, Merten said.
Merten attributed the 82.0% property-liability combined ratio to “strong underlying performance as well as lower catastrophes and favorable prior year reserve releases.” Excluding reserve changes and lower catastrophes, she said the auto underlying combined ratio was 89.5%, improving 1.7 points from the prior year.
On reserves, Merten described reserving as “an iterative process with strong governance and oversight,” adding that recent quarters have shown actual loss experience outperforming initial expectations, resulting in reserve releases from prior years. Wilson told analysts that “most of the change” in favorable development was tied to 2023 and 2024, with “very little in 2025,” noting that 2025 “hasn’t completely developed.”
Protection Services, investments, and capital returns
CFO John Dugenske said the Protection Services segment increased revenue 7.2% from the first quarter of 2025 and generated $47 million in adjusted net income. He said Allstate Protection Plans—covering items such as mobile phones and appliances—grew revenue 13.5% and generated $41 million in adjusted net income, “down slightly due to higher claims costs.” Dugenske said Arity’s results reflected “restructuring charge related to a reduced employee count.”
On investments, Dugenske said investment income rose 9.8% year over year. He attributed growth in net investment income to a larger portfolio and improved fixed-income yields, noting that since the first quarter of 2024, portfolio book value increased 24%, or roughly $17 billion. Over the past 12 months, the portfolio generated a 4.2% return, he said, while returns in the performance-based portfolio were “below longer-term historic averages” over one and three years but “remain above industry benchmarks.”
Management also emphasized capital returns. Dugenske said Allstate returned $881 million to shareholders in the quarter through dividends and repurchases. The company completed a prior $1.5 billion share repurchase program and launched a new $4 billion authorization, “accelerating the pace of repurchases.” He said $3.6 billion remained under the current authorization as of March 31, representing about 40% of holding company assets and 7% of outstanding shares.
During the Q&A, Wilson and Dugenske said capital deployment decisions consider organic growth, investments in the portfolio, technology spending, and opportunistic acquisitions. Wilson highlighted SquareTrade as an example, saying revenue has increased “eightfold” since acquisition and that the business generated $175 million of adjusted net income over the last 12 months.
Executives also discussed artificial intelligence initiatives, with Wilson distinguishing between “generative AI” for productivity and “agentic AI,” which he said could deliver competitive advantages through real-time decisioning. Merten said Allstate is building a large-language “intelligent ecosystem” called ALLIE. Wilson also said AI could remove service work from agents’ offices and cited a tool called “Customer Engagement Sidekick” that is “in market today.”
On the regulatory environment, Wilson said California still needs “a significant number of changes” before homeowners insurance can be “accurately priced with decent availability.” He also pointed to potential reforms in New York as a possible positive development, saying changes could “open a giant growth market for us.”
About Allstate NYSE: ALL
Allstate Corporation is a publicly traded insurance company headquartered in Northbrook, Illinois, and is one of the largest personal lines property and casualty insurers in the United States. Founded in 1931 as a subsidiary of Sears, Roebuck and Co, Allstate has grown into a diversified insurer that serves millions of consumers and businesses through a mix of distribution channels and product offerings.
The company underwrites a broad range of insurance products, with primary emphasis on auto and homeowners coverage.
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