ALL · Earnings call · 2026Q2T · Full report

Macroeconomic Factors Impact

ALLSTATE CORP · 2026-08-05 · Importance 35 · Surprise 64

Management said inflation continues to affect auto physical-damage severity, particularly parts and labor costs, while bodily-injury severity remains elevated relative to physical-damage severity. Used-car prices previously rose nearly 60% following pandemic supply constraints, and management is monitoring how inflation and bodily-injury trends develop in the second half of 2026. Management said recent inflation moderation in certain areas contributed to favorable reserve development, but future severity remains uncertain.