Key financial results

  • Total revenues were $17.3 billion for the quarter.revenues were $17.3 billion
  • Adjusted net income was $2.5 billion, or $9.76 per common share.adjusted net income of $2.5 billion or a $9.76 per common share
  • The company reported a 39.7% adjusted return on equity.This generated a 39.7% adjusted return on equity.
  • The Property-Liability combined ratio was 86.6%, which was 6.5 points above the prior year.The Property-Liability combined ratio was 86.6%, 6.5 points above the prior year
  • Investment income increased by 24% due to higher yields and growth in premiums.Investment income increased by 24%, reflecting higher yields and growth in premiums.

Business segment results

  • Property-Liability: Property-Liability net premiums written increased 2.5% to $16 billion.Property liability net premiums written increased 2.5% to $16 billion.
  • Property-Liability: Total policies in force increased 3.9%, with property liability policies up 3.3% and protection services up 4%.Total policies in force increased 3.9% with property liability policies up 3.3% and protection services up 4%.
  • Auto Insurance: The auto insurance combined ratio was 83.2%, benefiting from 9.1 points of prior year reserve reestimates.The auto insurance combined ratio was 83.2%, which benefited from 9.1 points of prior year reserve reestimates.
  • Homeowners Insurance: Homeowners insurance margins were strong with an 89.5 combined ratio.Homeowners insurance margins were strong with an 89.5 combined ratio
  • Protection Services: Protection Services premiums earned increased 7.5% to $3.5 billion over the last 12 months.premiums earned increased 7.5% to $3.5 billion
  • Protection Services: Protection Services adjusted net income increased 4.7% to $221 million over the last 12 months.adjusted net income increased 4.7% to $221 million.
  • Investments: The investment portfolio is anchored by interest-bearing assets, which represent 80% of the $7 billion portfolio.the portfolio is anchored by interest-bearing assets, which represent 80% of the 7 billion portfolio

Capital allocation

  • The company returned $1.5 billion to shareholders in the third quarter.In the third quarter, we returned $1.5 billion to shareholders.
  • Over the last 12 months, the company returned $4.4 billion to shareholders and repurchased 5.7% of outstanding shares.Over the last 12 months, we returned $4.4 billion to shareholders and repurchased 5.7% of outstanding shares.
  • Parent company holdco capital is approximately $9 billion and is considered deployable capital.It broadly equates to deployable capital.
  • Management noted inflation in physical damage and bodily injury trends.there is inflation in the environment, whether it's physical damage, bodily injury trends
  • Miles driven are trending down, though frequency is impacted by mix shifts.miles driven continue to trend down.
  • Regulatory scrutiny is increasing regarding claims practices and affordability.There is more regulatory scrutiny these days in 2 areas. So 1 is the cost of interest, the consumers pay and claims practices.
  • Tort reform in Florida allowed the company to lower prices for customers by 6%.In Florida, the Republicans pushed through tort reform, and we were able to lower our prices for customers by 6%.

Competitive landscape

  • The company is developing a Personal Agentic Assistant (PAA) to compete and serve other PAAs.The introduction of PAs creates opportunity for Allstate given our capabilities and an upcoming launch of our own personal genetic assistant
  • Exclusive agents are becoming more productive, with 5% fewer agents in the system year-over-year.we have about 5% fewer exclusive agents in the system this year versus last year. So they continue to be more productive.
  • The company competes with carriers like State Farm, GEICO, and Progressive.In the exclusive agent segment, State Farm and Allstate over-index in market share. For those customers that are brand sensitive and prefer to purchase directly GEICO and Progressive over-index

Macroeconomic environment

  • Higher interest rates during the quarter reduced fixed income unrealized valuations, resulting in a negative 2.1% return.Higher interest rates this quarter reduced fixed income unrealized valuations, resulting in a negative 2.1% return.
  • The company increased investment risk in 2025 by adding duration and $4 billion of public equity as economic uncertainty reduced.In 2025, as underwriting profitability improved, and economic uncertainty was reduced, investment risk was increased by adding duration and $4 billion of public equity

Growth opportunities and strategies

  • The company is executing a transformative growth plan initiated in 2019.Transformers growth was initiated in 2019, and it has 5 components
  • New business is up 125% to 12.4 million items.new business is up 125% to 12.4 million items
  • The company plans to launch sales-related AI capabilities in early 2027.we'll be launching sales-related AI capabilities in early 2027.
  • The company is focused on Affordable, Simple, and Connected (ASC) products.New property-liability products that are affordable, simple and connected or in our world of acronyms ASC are being launched.

Financial guidance and outlook

  • Management did not provide specific forward-looking numeric guidance for revenue or EPS.
  • The company is targeting a mid-90s combined ratio for auto insurance.

Technology and AI

  • 97% of employees are certified as AI-enabled.97% of employees are now certified as AI-enabled
  • The company wrote over 12 million lines of code using AI in the third quarter.we're using AI to do an increasing amount of coding, which as you can see, was over 12 million lines of code in the third quarter
  • The Ask Allstate tool handles 15% of ASC chat volume.15% of the ASC chat volume has been handled by Ask Allstate and customer satisfaction is high.

Q3 2026 results

MetricResultChange
Revenue$17.3 billionNot stated
Adjusted net income$2.5 billionNot stated
EPS$9.76 per shareNot stated
Property-liability net premiums written$16 billionup 2.5%
Total policies in force growth3.9%Not stated
Adjusted return on equity39.7%Not stated

How management sounded

Balanced (+35 on our -100 to +100 scale). Management expressed high confidence in their transformative growth plan, AI initiatives, and ability to manage margins, despite acknowledging competitive pressures and the need for granular rate adjustments. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.

Read the analyst Q&A summary and guidance and outlook for this call.

What to watch before the next call

  • The launch of the personal agentic assistant in early 2027 and its impact on customer acquisition and competitive dynamics.
  • Regulatory approval for the ASC product in New York to enable growth in that state.
  • The transition of exclusive agents to new operating models effective January 1, 2028.

Earlier calls

  • Q2 2026 (Aug 6, 2026), tone Positive: Allstate reported strong second quarter results with $2.3 billion in adjusted net income and an 86.6% combined ratio. Management emphasized the success of their transformative growth initiative and the upcoming deployment of their large language intelligent ecosystem, ALLIE.