EX-99.1 2 allcorp63026earningsreleas.htm EX-99.1 Document Exhibit 99.1 FOR IMMEDIATE RELEASE Contacts:      Nick Nottoli                Allister Gobin         Media Relations          Investor Relations             mediateam@allstate.com        invrel@allstate.com Allstate Reports Excellent Operating Results NORTHBROOK, Ill., August 5, 2026 – The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2026. “Allstate delivered strong operating and financial results in the second quarter of 2026, while executing our strategic growth plans,” said Tom Wilson, who leads The Allstate Corporation. “Revenues increased to $18.6 billion reflecting increased policies in force, higher average homeowners insurance prices and strong investment results. Net income was $3.2 billion and adjusted net income* was $2.3 billion, or $8.99 per diluted share. Adjusted net income return on equity* was 44.2% over the last 12 months. Share repurchases were increased to $1.0 billion for the quarter.” “Allstate creates shareholder value through operational excellence, sustainable growth and capital generation. Operational excellence is reflected in improving customer satisfaction while maintaining industry-leading Property-Liability returns. Transformative Growth is resulting in Property-Liability market share growth while Protection Services expands protection offerings. Capital generation supported organic growth, increased investment income and strong cash returns to shareholders, which were $3.5 billion, or 6.7% of market capitalization, over the last year,” concluded Wilson. Second Quarter 2026 Results • Total revenues of $18.6 billion in the second quarter of 2026 were $2.0 billion or 11.8% higher than the prior year quarter. • Net income applicable to common shareholders was $3.2 billion in the second quarter of 2026, compared to $2.1 billion in the prior year quarter, reflecting strong underwriting results. • Adjusted net income* was $2.3 billion, or $8.99 per diluted share, compared to $1.6 billion in the prior year quarter. 1 Exhibit 99.1 The Allstate Corporation Consolidated Highlights As of or for the three months ended June 30, As of or for the six months ended June 30, ($ in millions, except per share data and ratios) 2026 2025 % / pts Change 2026 2025 % / pts Change Consolidated revenues $ 18,596   $ 16,633   11.8   % $ 35,537   $ 33,085   7.4   % Net income applicable to common shareholders 3,241   2,079   55.9   % 5,669   2,645   114.3   % per diluted common share 12.51   7.76   61.2   % 21.73   9.85   120.6   % Adjusted net income* 2,330   1,591   46.4   % 5,127   2,540   101.9   % per diluted common share* 8.99   5.94   51.3   % 19.65   9.46   107.7   % Return on Allstate common shareholders’ equity (trailing twelve months) Net income applicable to common shareholders 49.1   % 29.6   % 19.5   Adjusted net income* 44.2   % 28.6   % 15.6   Common shares outstanding (in millions) 253.5   263.8   (3.9) % Book value per common share $ 123.38   $ 82.40   49.7   % Total policies in force (in thousands) (1) 215,935   208,051   3.8   % (1) Excludes policies in force related to the employer voluntary benefits and group health businesses sold in 2025. *     Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the “Definitions of Non-GAAP Measures” section of this document. ---------------------------------------------------------------------------------------------------------------------------------------------------------- • Property-Liability earned premiums of $14.9 billion increased 4.0% in the second quarter of 2026 compared to the prior year, primarily driven by policy in force growth and higher homeowners insurance average premiums. Underwriting income was $2.0 billion compared to $1.3 billion in the prior year quarter. Property-Liability Results As of or for the three months ended June 30, As of or for the six months ended June 30, ($ in millions) 2026 2025 % / pts Change 2026 2025 % / pts Change Premiums written $ 15,431   $ 15,047   2.6   % $ 30,056   $ 29,344   2.4   % Premiums earned $ 14,918   $ 14,346   4.0   % $ 29,720   $ 28,373   4.7   % Recorded combined ratio 86.6   91.1   (4.5) 84.3   94.2   (9.9) Underlying combined ratio* 79.4   79.5   (0.1) 79.8   81.3   (1.5) Catastrophe losses $ 1,722   $ 1,990   (13.5) % $ 2,962   $ 4,192   (29.3) % Underwriting income $ 2,006   $ 1,280   56.7   % $ 4,664   $ 1,640   184.4   % Policies in force (in thousands) 38,897   37,900   2.6   % ◦ Premiums written increased 2.6% compared to the prior year quarter, reflecting policy in force growth and higher homeowners insurance average premiums. ◦ Property-Liability recorded combined ratio was 86.6 for the quarter, which was an improvement of 4.5 points versus the prior year quarter. The improvement was driven by lower catastrophe losses and more favorable prior year reserve releases, partially offset by higher legal expenses. ◦ Policies in force increased by 2.6%, led by growth in auto and homeowners insurance policies. ◦ Allstate-branded Affordable, Simple, Connected auto insurance products are now available in 45 states with the homeowners insurance product available in 41 states. Custom360 ® middle market standard and preferred auto and homeowners insurance products for the independent agent channel are available in 41 states. 2 Exhibit 99.1 ◦ Allstate Protection auto insurance results reflect Transformative Growth execution, with strong profitability and policy growth, driven by expanded distribution and increased customer value. Allstate Protection Auto Results As of or for the three months ended June 30, As of or for the six months ended June 30, ($ in millions, except ratios) 2026 2025 % / pts Change 2026 2025 % / pts Change Premiums written $ 9,572   $ 9,533   0.4   % $ 19,422   $ 19,381   0.2   % Premiums earned $ 9,644   $ 9,528   1.2   % $ 19,191   $ 18,875   1.7   % Recorded combined ratio 83.3   86.0   (2.7) 82.6   88.6   (6.0) Underlying combined ratio* 87.6   87.8   (0.2) 88.5   89.5   (1.0) Underwriting income $ 1,606   $ 1,331   20.7   % $ 3,335   $ 2,147   55.3   % Policies in force (in thousands) 25,951   25,243   2.8   % ◦ Written and earned premiums grew 0.4% and 1.2%, respectively, compared to the prior year quarter. ◦ The recorded auto insurance combined ratio of 83.3 in the second quarter of 2026 was a 2.7 point improvement from the prior year quarter, due primarily to the benefit of prior year reserve releases and improvement in underlying losses. ◦ The underlying auto insurance combined ratio* of 87.6 in the second quarter of 2026 was a 0.2 point improvement from the prior year quarter. This quarter benefited from 2.4 points of favorable development on claims reported in the first quarter of 2026. ◦ Auto insurance policies in force grew by 2.8% with an 8.8% increase in new business, reflecting affordability initiatives, expanded distribution, increased marketing and new products. ◦ Allstate Protection homeowners insurance remains a competitive advantage and continues to deliver profitable growth. Underwriting profit of $226 million increased from a loss of $76 million in the prior year quarter, reflecting higher earned premiums and lower catastrophe losses. Allstate Protection Homeowners Results As of or for the three months ended June 30, As of or for the six months ended June 30, ($ in millions, except ratios) 2026 2025 % / pts Change 2026 2025 % / pts Change Premiums written $ 4,752   $ 4,395   8.1   % $ 8,493   $ 7,848   8.2   % Premiums earned $ 4,201   $ 3,771   11.4   % $ 8,365   $ 7,428   12.6   % Recorded combined ratio 94.6   102.0   (7.4) 89.1   107.1   (18.0) Catastrophe losses $ 1,408   $ 1,614   (12.8) % $ 2,454   $ 3,438   (28.6) % Underlying combined ratio* 61.5   58.6   2.9   61.0   60.5   0.5   Underwriting income (loss) $ 226   $ (76) NM $ 911   $ (527) NM Policies in force (in thousands) 7,819   7,596   2.9   % NM = not meaningful ◦ Written premiums and earned premiums increased by 8.1% and 11.4% compared to the prior year quarter, respectively, due to higher average premiums and policy in force growth. A 5.8% increase in Allstate brand homeowners insurance average gross written premium compared to the prior year quarter reflects rate increases and higher home replacement costs. ◦ The recorded homeowners insurance combined ratio of 94.6 was 7.4 points below the second quarter of 2025, due to higher average earned premiums and lower catastrophe losses. ◦ Catastrophe losses of $1.4 billion in the quarter decreased 12.8% compared to the prior year. ◦ The underlying combined ratio* of 61.5 was 2.9 points above the prior year quarter, reflecting higher loss costs. 3 Exhibit 99.1 ◦ Policies in force increased 2.9% compared to the prior year quarter, primarily driven by a 16.4% increase in new business, reflecting enhanced direct distribution capabilities and improved Allstate agent productivity. ---------------------------------------------------------------------------------------------------------------------------------------------------------- • Protection Services is comprised of five businesses that broaden protection through embedded product offerings. Revenues increased to $935 million in the second quarter of 2026, 7.8% higher than the prior year quarter, primarily due to continued Protection Plans growth. Adjusted net income of $53 million decreased by $7 million compared to the prior year quarter, primarily due to higher Protection Plans claim costs. Protection Services Results Three months ended June 30, Six months ended June 30, ($ in millions) 2026 2025 % / $ Change 2026 2025 % / $ Change Total revenues (1) $ 935   $ 867   7.8   % $ 1,857   $ 1,727   7.5   % Protection Plans 615  563  9.2  1,228  1,103  11.3  Roadside 66  56  17.9  129  111  16.2  Dealer Services 147  148  (0.7) 295  294  0.3  Identity Protection 40  41  (2.4) 80  81  (1.2) Arity 67  59  13.6  125  138  (9.4) Adjusted net income (loss) $ 53   $ 60   $ (7) $ 100   $ 115   $ (15) Protection Plans 42  51  (9) 83  96  (13) Roadside 13  11  2  25  22  3  Dealer Services 3  4  (1) 8  8  —  Identity Protection 2  2  —  3  3  —  Arity (7) (8) 1  (19) (14) (5) (1) Excludes net gains and losses on investments and derivatives. ◦ Protection Plans continued to expand distribution relationships and product offerings. Revenue of $615 million increased $52 million, or 9.2%, compared to the prior year quarter primarily due to strong international and domestic growth. Adjusted net income of $42 million in the second quarter of 2026 decreased $9 million compared to the prior year quarter primarily reflecting lower margins on major appliances. ◦ Roadside revenue of $66 million in the second quarter of 2026 increased 17.9% compared to the prior year quarter reflecting increased bundling with Allstate-branded Affordable, Simple, Connected auto insurance products and new partnerships. Adjusted net income of $13 million in the second quarter was $2 million higher than the prior year quarter. ◦ Dealer Services generated revenue of $147 million, relatively flat compared to the prior year quarter. Adjusted net income was $3 million compared to $4 million in the prior year quarter. ◦ Identity Protection revenue of $40 million in the second quarter of 2026 decreased 2.4% compared to the prior year quarter. Adjusted net income of $2 million in the second quarter of 2026 was in line with the prior year quarter. ◦ Arity revenue of $67 million increased 13.6% compared to the prior year quarter driven by higher lead generation advertising sales. Adjusted net loss was $7 million in the second quarter of 2026 compared to a loss of $8 million in the prior year quarter. ------------------------------------------------------------------------------------------------------------------------------------------------------- 4 Exhibit 99.1 • Allstate Investments uses a proactive approach to balancing risk and return for the $87.8 billion portfolio. Net investment income of $1.0 billion in the second quarter of 2026 increased by $255 million from the prior year quarter with contributions from both market-based and performance-based investments. Allstate Investment Results Three months ended June 30, Six months ended June 30, ($ in millions, except ratios) 2026 2025 $ / pts Change 2026 2025 $ / pts Change Net investment income $ 1,009   $ 754   $ 255   $ 1,947   $ 1,608   $ 339   Market-based (1) 837  733  104  1,628  1,452  176  Performance-based (1) 239  79  160  446  275  171  Net gains (losses) on investments and derivatives $ 1,055   $ (144) $ 1,199   $ 650   $ (493) $ 1,143   Change in unrealized net capital gains and losses, pre-tax (2) $ 185   $ 492   $ (307) $ (479) $ 1,032   $ (1,511) Total return on investment portfolio (2) 2.6   % 1.4   % 1.2   2.5   % 2.8   % (0.3) Total return on investment portfolio (2) (trailing twelve months) 5.6   % 5.4   % 0.2   (1) Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses. (2) Includes investments held for sale. ◦ Market-based investment income was $837 million in the second quarter of 2026, an increase of $104 million, or 14.2%, compared to the prior year quarter, reflecting growth in asset balances to $78.0 billion and higher fixed income yields. ◦ Performance-based investment income totaled $239 million in the second quarter of 2026, an increase of $160 million over the prior year quarter with higher private equity and real estate income. The overall portfolio allocation to performance-based assets provides a diversifying source of attractive long-term returns; quarterly volatility in reported results is expected. ◦ Net gains on investments and derivatives were $1.1 billion in the second quarter of 2026, compared to losses of $144 million in the prior year quarter. Second quarter 2026 results primarily reflected valuation increases on public equity securities, partially offset by losses on repositioning sales and valuation and settlement of derivative instruments. ◦ Unrealized net capital losses totaled $97 million (pre-tax), a $185 million increase to the prior quarter end. ◦ Total return on the investment portfolio was 2.6% for the second quarter and 5.6% for the trailing twelve months. Proactive Capital Management “Consistent operating performance continues to generate attractive returns and deployable capital,” said John Dugenske, President, Investments and Corporate Strategy. “In the second quarter, we returned $1.3 billion to shareholders through $1.0 billion in share repurchases and $280 million in dividends. Allstate’s financial strength provides flexibility to continue creating shareholder value while maintaining a resilient balance sheet,” concluded Dugenske. Visit www.allstateinvestors.com for additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, August 6. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com . 5 Exhibit 99.1 Forward-Looking Statements This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement. About Allstate The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with affordable, simple and connected protection for autos, homes, electronic devices and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online and at the workplace. Allstate has 216 million policies in force and is widely known for the slogan “You’re in Good Hands with Allstate.” For more information, visit www.allstate.com. 6 THE ALLSTATE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) ($ in millions, except par value data) June 30, 2026 December 31, 2025 Assets Investments Fixed income securities, at fair value (amortized cost, net $60,902 and $58,730) $ 60,809  $ 59,115  Equity securities, at fair value (cost $10,071 and $8,026) 11,159  8,398  Mortgage loans, net 842  879  Limited partnership interests 8,967  8,844  Short-term, at fair value (amortized cost $4,874 and $4,888) 4,872  4,887  Other investments, net 1,153  1,114  Total investments 87,802   83,237   Cash 840  678  Premium installment receivables, net 11,864  11,474  Deferred policy acquisition costs 6,139  6,163  Reinsurance and indemnification recoverables, net 7,880  8,501  Accrued investment income 730  708  Property and equipment, net 591  627  Goodwill 3,118  3,118  Other assets, net 5,792  5,252  Total assets $ 124,756   $ 119,758   Liabilities Reserve for property and casualty insurance claims and claims expense $ 40,979  $ 41,079  Unearned premiums 29,388  29,080  Claim payments outstanding 1,552  1,419  Deferred income taxes 172  227  Other liabilities and accrued expenses 11,495  9,874  Debt 7,492  7,490  Total liabilities 91,078   89,169   Equity Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 82.0 thousand shares issued and outstanding, $2,050 aggregate liquidation preference 2,001  2,001  Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 254 million and 260 million shares outstanding 9  9  Additional capital paid-in 4,219  4,158  Retained income 67,504  62,393  Treasury stock, at cost (646 million and 640 million shares) (39,842) (38,206) Accumulated other comprehensive income (loss): Unrealized net capital gains and losses (79) 297  Unrealized foreign currency translation adjustments (126) (55) Unamortized pension and other postretirement prior service credit 10  11  Discount rate for reserve for future policy benefits 2  2  Total accumulated other comprehensive (loss) income (193) 255   Total Allstate shareholders’ equity 33,698   30,610   Noncontrolling interest (20) (21) Total equity 33,678   30,589   Total liabilities and equity $ 124,756   $ 119,758   7 THE ALLSTATE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) ($ in millions, except per share data) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Revenues Property and casualty insurance premiums $ 15,670  $ 15,041  $ 31,223  $ 29,739  Accident and health insurance premiums and contract charges 134  235  270  722  Other revenue 728  747  1,447  1,509  Net investment income 1,009  754  1,947  1,608  Net ga