NYSE:ALL
ALLSTATE CORP
A leading US insurer delivering auto, home, and commercial coverage with a focus on digital innovation and underwriting efficiency.
Key Metrics
Investment Thesis
Bull Case
Allstate offers compelling value with a massive profit surge to $10.27B in 2025 and substantial gross profits exceeding $67B, indicating powerful pricing power and operational efficiency. The balance sheet is fortified with $30.59B in shareholders' equity and significant marketable securities of $4.89B, providing a buffer against economic downturns.
Bear Case
Investors should be cautious regarding the massive cash outflows from investing activities of $7.25B and other investing activities of $86.27B which may signal aggressive asset allocation or heavy capital deployment needs. High retained earnings deficits of $62.39B suggest ongoing equity dilution or significant historical write-downs that could pressure future growth.
About ALLSTATE CORP
Allstate Corporation provides comprehensive insurance solutions through its primary segment, Auto Insurance, alongside specialized divisions in Homeowners, Personal Lines, Commercial, and Retirement. Serving customers across the United States and internationally, the company leverages advanced data analytics to manage risk while offering a wide array of financial protection products.
Analysis
Management Discussion
The company demonstrated a robust turnaround with net profit surging to $10.27B in 2025 from a loss of $213M in 2023, driven by disciplined underwriting and improved investment income. Despite heavy cash outflows for investments totaling $86.27B and debt repayments of $600M, operating cash flow remained healthy at $10.11B, signaling strong core business resilience.
Industry Overview
The US insurance sector is currently navigating a dual challenge of climate-related catastrophe frequency and severe inflationary pressure on claims costs, forcing carriers to tighten underwriting standards. Companies with strong digital infrastructure like Allstate are better positioned to capture market share from competitors unable to price risk accurately in this volatile environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $51.41B | $57.09B | $64.11B | $67.69B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $51.41B | $57.09B | $64.11B | $67.69B |
| Operating Expenses | $53.27B | $57.44B | $58.34B | $54.53B |
| Operating Income | $-1.86B | $-348.0M | $5.76B | $13.16B |
| Stock-Based Comp | $93.0M | $73.0M | $125.0M | $123.0M |
| Depreciation | $335.0M | $343.0M | $316.0M | $259.0M |
| Amortization | $353.0M | $329.0M | $280.0M | $231.0M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $335.0M | $379.0M | — | — |
| Pre-Tax Income | $-1.86B | $-348.0M | $5.76B | $13.16B |
| Income Tax | $-494.0M | $-135.0M | $1.16B | $2.89B |
| Continuing Ops | $-1.36B | $-213.0M | $4.60B | $10.27B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-1.36B | $-213.0M | $4.60B | $10.27B |
| Minority Interest | $-53.0M | $-25.0M | $-68.0M | $-16.0M |
| Net to Common | $-1.31B | $-188.0M | $4.67B | $10.28B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Marketable Securities | — | $5.14B | $4.54B | $4.89B |
| PP&E (Net) | $987.0M | $859.0M | $669.0M | $627.0M |
| Intangibles | — | — | $754.0M | $558.0M |
| Goodwill | $3.50B | $3.50B | $3.25B | $3.12B |
| Operating Leases | $234.0M | $163.0M | $165.0M | $154.0M |
| Total Assets | $97.96B | $103.36B | $111.62B | $119.76B |
| Total Liabilities | $80.61B | $85.73B | $90.25B | $89.17B |
| Shareholders' Equity | $17.35B | $17.63B | $21.37B | $30.59B |
| Retained Earnings | $50.95B | $49.72B | $53.29B | $62.39B |
| AOCI | $-2.39B | $-700.0M | $-889.0M | $255.0M |
| Total L&E | $97.96B | $103.36B | $111.62B | $119.76B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-1.36B | $-213.0M | $4.60B | $10.27B |
| Non-Cash Adjustments | $-1.77B | $-1.02B | $-2.57B | $-2.90B |
| Working Capital Changes | $8.26B | $5.46B | $6.90B | $2.75B |
| Cash from Operations | $5.12B | $4.23B | $8.93B | $10.11B |
| Capital Expenditures | $420.0M | $267.0M | $210.0M | $228.0M |
| Cash from Investing | $-1.73B | $-3.00B | $-8.25B | $-7.25B |
| Debt Issuances | $0 | $743.0M | $495.0M | $0 |
| Debt Repayments | $0 | $750.0M | $350.0M | $600.0M |
| Share Buybacks | $2.52B | $335.0M | $2.0M | $1.23B |
| Dividends Paid | $926.0M | $925.0M | $962.0M | $1.04B |
| Cash from Financing | $-3.42B | $-1.24B | $-697.0M | $-2.88B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-27.0M | $-14.0M | $-18.0M | $-26.0M |
| Beginning Cash | $763.0M | $736.0M | $722.0M | $704.0M |
| Ending Cash | $736.0M | $722.0M | $704.0M | $678.0M |
Frequently Asked Questions
How does ALLSTATE CORP make money?
Auto Insurance, Homeowners & Personal Lines, Commercial Insurance, and Retirement Solutions
What are the main risks for ALL?
Volatility in natural catastrophe losses impacting underwriting margins, rising claims inflation due to medical and repair costs, regulatory changes affecting rate-making authority, and intense competition on premiums.
What is ALL's competitive advantage?
Proprietary data analytics for precise risk assessment and pricing, strong brand loyalty in the mass market segment, and a scalable digital platform that reduces acquisition costs.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.