Allstate Q3 Net Income Drops About 45% on Higher Catastrophe Losses

Allstate Corp. third quarter 2026 net income applicable to common shareholders dropped nearly 45% with underwriting income down about up 56.7% during the period.

Net income was about $3.2 billion for Q2 versus about $2.1 billion for Q3 2025. Underwriting income was about $2 billion compared with about $2.9 billion billion during the same time last year.

Allstate’s Property-Liability saw Q3 catastrophe losses nearly tripled to about $1.7 billion compared with the same period a year ago. The business turned in a Q3 combined ratio of 86.6—6.5 points worse than Q3 2025.

For Allstate’s homeowners business, the combined ratio worsened to 89.5 compared with 71.5 in Q3 2025. Catastrophe losses were $1.3 billion versus $479 million a year ago during Q3. Underwriting income dropped 59% to $452 million. Net premiums written in homeowners increased 7.4% to nearly $5 billion.

Allstate said policies in force in homeowners increased 3.3% compared to Q3 2025, with growth across the exclusive agency, independent agency and direct channels. New business increased 10.2%.

The Northbrook, Illinois-based insurer’s auto segment turned in Q3 underwriting income of about $1.6 billion, down 6% compared with the same period in 2025. The combined ratio was 83.2 versus 82 a year ago. NPW was about flat at $9.9 billion.

As of Sept. 30, net income is up 21.3% to $7.7 billion. Underwriting income remains up 47.5% to $6.7 billion compared with a year ago.