It has been about a month since the last earnings report for Allstate (ALL). Shares have added about 0.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Allstate due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Allstate Q2 Earnings Beat Estimates on Strong Premium Growth
The Allstate Corporation reported a second-quarter 2025 adjusted net income of $5.94 per share, which beat the Zacks Consensus Estimate by 78.9%. The bottom line rose significantly from $1.61 a year ago.
Operating revenues advanced 6.1% year over year to $16.8 billion but missed the consensus mark by 2.9%.
The better-than-expected second-quarter earnings benefited from growth in premiums and improved investment income in the Property-Liability business and decreased costs and expenses. However, the upside was partly offset by the sale of the Employer Voluntary Benefits unit.
Key Takeaways From Allstate’s Q2 Results
Property and casualty insurance premiums increased 7.8% year over year to $15 billion. Net investment income was $754 million, which rose 5.9% year over year, resulting from a growing market-based portfolio. The metric missed the Zacks Consensus Estimate of $815.4 million. Market-based investment income increased 66% year over year to $733 million in the quarter under review.
Total costs and expenses declined 3% year over year to $14.8 billion, lower than our estimate of $16.2 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 $2 billion from $2.1 billion a year ago.
Allstate’s pretax income was $2.7 billion in the second quarter, significantly up from the year-ago figure of $430 million.
As of June 30, 2025, total policies in force were 208 million, which grew 4% year over year.
ALL’s Segmental Performances
The Property-Liability segment’s premiums earned advanced 7.5% year over year to $14.3 billion, attributable to higher average premiums. Yet, the metric fell short of the Zacks Consensus Estimate by 1.4%. Underwriting income in the unit amounted to $1.3 billion against the prior-year quarter’s loss of $145 million. The underlying combined ratio improved 580 basis points year over year to 79.5%.
The Protection Services segment recorded revenues of $867 million, which advanced 12.2% year over year, aided by Allstate Protection Plans and Arity businesses. Adjusted net income increased to $60 million from $55 million a year ago.
The Allstate Health and Benefits segment’s premium and contract charges declined 50.4% year over year to $235 million due to the Employer Voluntary Benefits unit sale and missed the Zacks Consensus Estimate by 33%. Adjusted net income of $4 million dropped 93.1% year over year.
Financial Update (As of June 30, 2025)
Allstate exited the second quarter with a cash balance of $995 million, which rose from the 2024-end level of $704 million. Total assets of $115.9 billion increased from $111.6 billion at 2024-end.
Debt amounted to $8.1 billion, stable from the 2024-end figure.
Total equity of $24 billion advanced from the 2024-end level of $21.4 billion.
Book value per common share was $82.40 as of June 30, 2025, which climbed 32.6% year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 7.33% due to these changes.
VGM Scores
At this time, Allstate has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock has a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Allstate has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Allstate belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Travelers (TRV), has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Travelers reported revenues of $12.11 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $6.51 for the same period compares with $2.51 a year ago.
Travelers is expected to post earnings of $5.28 per share for the current quarter, representing a year-over-year change of +0.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
Travelers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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The Allstate Corporation (ALL): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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