The Allstate Corporation (ALL) is a leading U.S. personal lines property-casualty insurer (based on earned premiums), writing mostly private passenger auto and homeowners insurance through exclusive agencies plus a multi-access model. Following divestitures of life/retirement units, ALL is now a focused P&C and protection franchise with $59.5B net written premiums in 2025.

ALL's moat is built on an exclusive agency network, brand ("Good Hands"), and a geographically diversified P&C book that is hard to replicate at scale. Underwriting discipline and pricing power — honed during the post-pandemic hard-market — drive superior combined ratios. The 2025 GAAP combined ratio improved to 85.2% (vs 94.3% in 2024), reflecting lower catastrophe claims and easing claims inflation.

• Q2 2026 beat: Adjusted EPS USD 8.99 vs USD 5.94 YoY and USD 6.07 consensus; total revenues USD 18,596M (+11.8% Y/Y). GAAP diluted EPS USD 12.51 (boosted by USD 1,055M net investment gains).
• Underwriting improved: P-L underwriting income USD 2,006M (+56.7% Y/Y); recorded combined ratio 86.6% (improved 4.5 pts Y/Y); underlying combined ratio 79.4% essentially flat Y/Y. Prior-year reserve releases contributed 4.6 pts.
• Auto discipline: Recorded auto combined ratio 83.3% (improved 2.7 pts Y/Y); underlying auto CR 87.6%. Policies in force +2.8% Y/Y; new-business apps +8.8% Y/Y across all distribution channels.
• Homeowners growth: Premiums written +8.1% Y/Y; underlying combined ratio 61.5% (deteriorated 2.9 pts Y/Y on higher loss costs).
• Investment income surge: Net investment income USD 1,009M (+33.8% Y/Y); total portfolio USD 87,802M (+13.4% Y/Y); equity securities USD 11,159M.
• Capital returns & balance sheet: Repurchased USD 1.0B in Q2 (USD 3.5B over trailing 12 months, ~6.7% of market cap). Shares out 253.5M (-3.9% Y/Y). Debt-to-capital improved to 18.2% (vs 25.2% YoY).
• Rating change (08/07/2026): CFRA lowered recommendation to BUY from STRONG BUY, reflecting valuation convergence while maintaining a bullish long-term thesis on P&C underwriting discipline.
• Portfolio streamlining: Completed historical divestitures (Employer Voluntary Benefits for $2B and Group Health for $1.25B in 2025; life insurance unit sale to Blackstone for $2.8B in 2021) to fully refocus capital on the core, high-return property-casualty franchise.

• Catastrophe exposure: Volatile weather patterns could drive above-expected weather/cat-related loss costs — the primary risk to rating and target.
• Auto rate competition: Greater-than-expected softening in auto rates + rising claim costs (tariff inflation risk) could compress margins.
• Product mix concentration: Lack of diversification beyond P&C flagged in risk assessment.
• Homeowners loss-cost trend: Underlying CR deterioration (61.5%, +2.9 pts Y/Y) worth monitoring.