Allstate reports Q1 2025 results

Allstate reported $16.5 billion in revenue for Q1 2025, a 7.8% increase year-over-year. Net income reached $566 million, with adjusted net income of $949 million, or $3.53 per diluted share.

The company continues expanding its new “Affordable, Simple, Connected” auto insurance product, now available in 36 states, alongside a companion homeowners product in 6 states. Its Custom360 auto product for the middle market, sold through independent agents, is available in 31 states.

Auto new business applications rose 31.2% year-over-year, driven by growth across exclusive agents, direct, and independent channels, with the direct channel leading in volume. However, lower retention led to a slight decline in total auto policies in force. Homeowners new business grew 10%, with strong bundling rates among exclusive agents and progress in the direct channel.

Allstate noted it has ample distribution capacity and is prioritizing product rollout to drive growth. The S.A.V.E. (show Allstate customers value every day) program is expected to impact customer interactions.

On advertising, Allstate said spend will be guided by expected returns and market opportunities. Leadership emphasized confidence in margins for both auto and home, with plans to grow share and expand in areas like renters insurance. “So our goal is increase market share and sell more protection to people. So there’s other places we can grow besides auto insurance, too. I think we should be growing faster in renters and some other stuff. It’s not going to make a huge deal in terms of absolute revenues.” – Allstate CEO Tom Wilson.

Finally, Allstate continues to lose money on Arity, which generated $79 million in Q1 2025 revenue—more than double year-over-year—driven by increased lead sales, though its adjusted net loss widened to $6 million.