ALL · Earnings call · 2026Q2T · Full report

Operating Income and Margins

ALLSTATE CORP · 2026-08-05 · Importance 69 · Surprise 64 · No source text

The Property-Liability combined ratio improved 4.5 points year over year to 86.6%, while the underlying combined ratio was 79.4%, flat with the prior-year quarter. Auto Insurance’s combined ratio improved 2.7 points to 83.3%, and Homeowners insurance improved 7.4 points to 94.6%. Property-Liability underwriting income rose nearly 57% to $2 billion. Lower catastrophe losses contributed 2.4 points and prior-year reserve re-estimates contributed 2 points of combined-ratio improvement, partially offset by a 1-point increase in the expense ratio from higher advertising and nonrecurring legal expenses.

Key facts

• Property-Liability generated $2 billion of underwriting income, an increase of nearly 57% from the prior year.
• Drivers of the 4.5 point combined ratio improvement: underlying loss ratio improved 1.1 points, lower catastrophe losses contributed 2.4 points, and prior year reserve re-estimates contributed 2 points; offset by a 1 point increase in the expense ratio.
• Auto claim reserve releases have totaled $1.5 billion this year.
• A reduction of expected costs for first quarter claims benefited the second quarter by 2.4 points, resulting in an adjusted underlying combined ratio of 90%.
• Property-Liability combined ratio was 86.6%, a 4.5 point improvement.
• Approximately half of the bodily injury changes relate to 2023 and 2024.
• Property-Liability underlying combined ratio was 79.4%.
• Adjusted net income return on equity is 44.2% over the last 12 months.

Impact estimates