Allstate (NYSE:ALL) delivered a standout fourth quarter, surpassing Wall Street expectations and sending its stock up more than 3% in pre-market today. The insurer benefited from improved underwriting results in its Property-Liability segment and a surge in investment income, bolstering its overall financial performance.
For the quarter, Allstate posted adjusted earnings per share of $7.67, a sharp increase from the $5.82 reported a year earlier. Revenue climbed to $16.5 billion, exceeding analyst estimates of $15.96 billion and reflecting an 11.3% year-over-year gain. Net income also saw a significant jump, reaching $1.9 billion—up 30.1% from the prior year.
A major driver of this strong performance was the company’s investment portfolio, which generated $3.1 billion in income for the year, marking a 24.8% increase from the previous period. The insurer attributed this growth to a shift toward higher-yielding fixed-income securities, portfolio expansion, and improved performance-based investments.
Looking ahead, Allstate anticipates continued growth in its Property-Liability segment throughout 2025. With auto insurance policy renewals improving and new business picking up, the company expects to see further expansion in policies and sustained financial strength in the year ahead.