A maker of auto, home, and commercial insurance sold under the Allstate, National General, and Answer Financial brands, Allstate is one of the largest personal-lines insurers in the United States. Founded in 1931 as a mail-order arm of Sears, Roebuck & Co., it took its name from a brand of Sears automobile tires. Its slogan "You're in good hands" was coined in 1950 by a sales executive inspired by his daughter's doctor reassuring him during her illness.
Allstate Q2 2026 net income rose 55% to $3.27B as underwriting income grew and reserve releases continued.
Underwriting profits kept climbing, but the engine is shifting from reserve releases to premium growth. rose 11.8% to $18.6B and widened 11.4 points to 22.3%, as grew 4% and catastrophe losses fell, while net investment income rose a third on stronger private equity returns. The company bought back $1.66B in stock, but the real question is whether margins hold when the reserve releases eventually slow.
Key takeaways
Allstate Protection underwriting income rose to $2.00B from $1.28B a year ago, driven by a 4.0% increase in to $14.92B, a $270M drop in catastrophe losses to $1.72B, and $641M in favorable , mainly from auto injury coverages.
The Property-Liability improved 4.5 points to 86.6, with the falling to 64.9 from 70.4, reflecting the lower catastrophe losses and a 4.3-point benefit from the reserve releases.
Section summaries
Management's Discussion and Analysis
Allstate's Q2 2026 net income surged to $3.24B, driven by higher underwriting income from premium growth, lower catastrophe losses, and favorable prior-year reserve releases.
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Consolidated applicable to common shareholders rose to $3.24 billion in Q2 2026 from $2.08 billion in Q2 2025, driven by a $723 million increase in Allstate Protection .
Net investment income rose 33.8% to $1.01B, as market-based income grew and performance-based returns from private equity and real estate added $160M more than the prior year.
The company repurchased $1.66B in common shares during the quarter under a $4.00B authorization approved in Q1 2026, and parent-company deployable assets stood at $9.45B.
grew to $33.70B, up 40.3% from a year ago, reflecting and the share repurchases.
What changed
The Q2 2025 filing flagged whether the could stay below 100 after the 91.4 print; it did, improving further to 86.6 in Q2 2026, though $641M in reserve releases provided a 4.3-point benefit.
The Q1 2026 filing asked whether the could stay below 95 after the 82.0 Q1 print; it rose to 86.6, still well below 95, as reserve releases remained substantial at $641M versus $1.00B in Q1.
Auto average premium decreased 2.5% in Q1 2026, and the Q1 filing flagged the trajectory; Q2 still grew 4.0% overall, suggesting policy growth is offsetting moderating rate actions.
The Q1 2026 filing flagged the pace of share repurchases under the new $4.00B authorization after $620M was deployed in Q1; the pace accelerated, with $1.66B repurchased in Q2, bringing the two-quarter total to $2.28B.
What to watch
Whether the Allstate Protection can stay below 95 in Q3 2026 after the 86.6 Q2 print, given that $641M in favorable prior-year reserve releases may not repeat at the same scale.
Auto policies in force and average premium trajectory as the 2.5% decrease in auto average premium in Q1 suggests rate actions are moderating, while earned premium growth slowed to 4.0% from 5.5% in Q1.
Catastrophe losses in Q3 2026 against the $1.72B Q2 figure and the $3.5B net probable maximum loss reinsurance cover.
Pace of share repurchases under the remaining $1.72B of the $4.00B authorization after $2.28B was deployed in the first half of 2026.
Property-Liability earned premiums grew 4.0% to $14.92 billion, with the improving 4.5 points to 86.6, reflecting lower catastrophe losses and a 4.3-point benefit from prior-year reserve releases.
Catastrophe losses fell to $1.72 billion from $1.99 billion, while favorable , primarily in auto injury coverages, totaled $641 million.
Net investment income increased 33.8% to $1.01 billion, driven by higher market-based income and a $160 million rise in performance-based results from private equity and real estate.
Allstate grew to $33.70 billion, and the company repurchased $1.66 billion in common shares while holding $9.45 billion in deployable assets at the parent company level.
Information required for Part II, Item 1 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 11 of the condensed consolidated financial statements in Part I, I…
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Information required for Part II, Item 1 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 11 of the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.
There have been no material changes in our risk factors from those disclosed in Part I, Item 1A in our annual report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes in our risk factors from those disclosed in Part I, Item 1A in our annual report on Form 10-K for the year ended December 31, 2025.