Allstate Q1 Net Income Skyrockets on Underwriting Gains

Allstate Corp. first quarter 2026 net income applicable to common shareholders more than quadrupled compared with the same time a year ago, due to a large gain in underwriting income.

Net income was $2.4 billion for Q1 versus $566 million for the first three months of 2025.

Allstate’s Property-Liability business turned in a Q1 combined ratio of 82—more than 15 points better than Q1 2025. Catastrophe losses for the quarter were $1.2 billion compared with $2.2 billion, and underwriting income went from $360 million in 2025 to about $2.7 billion in 2026.

“Market share of auto and homeowners insurance increased in many states due to a comprehensive approach of more affordable prices, new products, expanded benefits, bundled offerings, lower expenses, sophisticated analytics and increased marketing,” said CEO Tom Wilson, in a statement. “This positioned Allstate and independent agents and direct distribution to capture a record amount of new business in the quarter.”

Policies in force increased 2.3% due to growth in auto and home insurance policies.

The Northbrook, Illinois-based insurer’s auto segment turned in Q1 underwriting income of about $1.7 billion compared with $816 million for Q1 2025. The combined ratio was 81.9 versus 91.3 a year ago. Prior year reserves were lowered nearly $820 million as the insurer readjusted estimated claims costs for 2023-2025.

For Allstate’s homeowners business, the combined ratio improved from an unprofitable 112.3 in Q1 2025 to 83.5 this year thanks to a drop in catastrophe losses of nearly $780 million.

Underwriting income for Q1 was $685 million, reversing a loss of $451 million for the same period last year. Q1 premiums written in homeowners were up 8.3%.