The Allstate Corporation reported strong operating and financial performance for the second quarter of 2025, with consolidated revenues increasing by 5.8% to $16.633 billion. Net income applicable to common shareholders reached $2.079 billion, or $7.76 per diluted share. Adjusted net income stood at $1.591 billion, or $5.94 per diluted share, excluding a $643 million gain from the Employer Voluntary Benefits business divestiture. The adjusted net income return on equity was 28.6% for the trailing twelve months.
The Property-Liability segment delivered significant improvements, with underwriting income surging to $1.280 billion, a substantial turnaround from a $145 million loss in the prior year quarter. The recorded combined ratio for this segment improved by 10.0 points to 91.1, while the underlying combined ratio improved by 5.8 points to 79.5. Auto underwriting income was $1.331 billion, with a recorded combined ratio of 86.0, reflecting broad profitability. Homeowners underwriting loss improved to $76 million from $375 million in the prior year, with an underlying combined ratio of 58.6.
Catastrophe losses for the quarter were $1.990 billion, a 6.1% decrease from the prior year quarter, though total catastrophe losses for the first six months of 2025 increased by 47.0% to $4.192 billion. Total policies in force increased by 4.2% to 208 million, led by Protection Plans. Personal property-liability policies also began to grow due to expanded distribution, new products, and increased marketing. Allstate Protection Plans revenues grew by 16.6%, and Arity revenues increased by 13.5%.
The $77.4 billion investment portfolio generated $754 million of income in the quarter, contributing to a total return of 1.4% for the quarter and 5.4% over the last 12 months, while lowering overall portfolio risk. The divestiture of the Group Health business was completed on July 1, bringing total divestiture proceeds from the health businesses to $3.25 billion. The company also repurchased $341 million of common stock, demonstrating its commitment to returning capital to shareholders.
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