The Allstate Corporation reported first-quarter 2025 financial results, with consolidated revenues increasing by 7.8% to $16.452 billion compared to the prior year. Net income applicable to common shareholders was $566 million, or $2.11 per diluted share, a decrease of 52.4% from the prior year. Adjusted net income stood at $949 million, or $3.53 per diluted share, down 30.6%, primarily due to unprecedented severe weather events.
The Property-Liability segment's premiums earned increased by 8.7% to $14.027 billion. However, the recorded combined ratio for this segment rose by 4.4 points to 97.4, largely driven by record catastrophe losses. The underlying combined ratio, excluding these volatile events, improved by 3.8 points to 83.1, indicating strong underlying insurance profitability. Gross catastrophe losses reached $3.3 billion, partially offset by $1.1 billion in reinsurance recoveries, resulting in net losses of $2.202 billion.
Auto insurance showed strong performance with underwriting income surging by 132.5% to $816 million, and its recorded combined ratio improving by 4.7 points to 91.3. Auto policies in force saw a slight decline of 0.4%, despite a 31.2% increase in new business applications. Homeowners insurance experienced an underwriting loss of $451 million due to $1.824 billion in net catastrophe losses, primarily from California wildfires and March wind events, but policies in force grew by 2.5%.
The Protection Services segment continued its growth, with revenues up 14.2% to $860 million, driven by a 16.4% increase in Allstate Protection Plans revenue and a 102.6% increase in Arity revenue. Net investment income increased by $90 million to $854 million. The company also highlighted the completion of the Employer Voluntary Benefits business sale on April 1 for $2.0 billion, which will generate a $625 million financial book gain to be recorded in the second quarter, further strengthening capital alongside the previously announced $1.5 billion share repurchase program and dividend increase.
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