Allstate (ALL) reported net income applicable to common shareholders of $2.1 billion ($2,050 million) in the third quarter of 2026, down 44.8% from $3.7 billion in 3Q25. According to the company, the decline was mainly due to higher catastrophe losses, a gain on the sale of the group health business in 2025, and net losses on investments and derivatives, partially offset by higher earned premiums. Diluted earnings per share (EPS) were $8.03, compared with $13.95 a year earlier.
Adjusted net income (non-GAAP, excludes items such as gains and losses on investments and derivatives) was $2.5 billion ($2,493 million), or $9.76 per share, versus $3.0 billion ($2,976 million) and $11.17 per share in 3Q25. Total revenue was $17.3 billion ($17,348 million), up 0.5%. Return on equity over the last 12 months was 41.3%, and adjusted return on equity was 39.7%.
In the Property-Liability segment, earned premiums totaled $15.1 billion, up 3.8%. Catastrophe losses were $1.65 billion, versus $558 million in 3Q25, and underwriting income fell 30.1% to $2.0 billion. The combined ratio (costs relative to premiums; below 100 indicates an underwriting profit) was 86.6, versus 80.1. The segment's policies in force grew 3.3% to 39.3 million. In auto insurance, the combined ratio was 83.2 and policies rose 3.4%. In homeowners, it was 89.5 and policies rose 3.3%.
Protection Services revenue rose 6.9% to $964 million, and the segment's adjusted net income was $64 million, versus $46 million. Net investment income totaled $1.2 billion ($1,177 million), up $228 million, but there were net losses of $545 million on investments and derivatives, attributed to rising interest rates. In October, Arity acquired INRIX and, in November, reached an agreement to buy the remaining stake in Replica, with completion expected by the end of 2026.
About $1.5 billion was returned to shareholders in the quarter through share repurchases and dividends. As of September 30, $1.3 billion remained under the $4.0 billion repurchase program started in February 2026. The declared dividend was $1.08 per common share for the quarter.
