Allstate disclosed estimated catastrophe losses for November 2025 of $46 million ($36 million after‑tax). Combined losses for October and November totaled $129 million ($101 million after‑tax), up from $95 million ($75 million after‑tax) reported for September‑October 2025, indicating a modest month‑over‑month increase.
The November losses were driven by a series of moderate weather events across the Midwest, including a 4‑inch snowstorm that caused property damage and a 2‑inch rain event that led to flooding claims. These events were smaller in scale than the January 2025 hurricane‑related losses of $1.08 billion, placing the November figure in the lower range of Allstate’s recent catastrophe history.
Despite the losses, Allstate’s underwriting profitability remained strong. Net income attributable to common shareholders rose to $3.7 billion in Q3 2025, up 210% YoY, and adjusted net income reached $11.17 per diluted share versus the consensus estimate of $7.52, a beat of $3.65. The company credited lower catastrophe losses and disciplined pricing in its core auto and homeowners segments for the earnings outperformance.
Allstate’s policy‑in‑force growth continued, with total policies reaching 38.2 million as of November 30, a 1.5% increase from November 2024. However, commercial lines policies fell 20.8% year‑over‑year to 175,000, reflecting a strategic shift toward higher‑margin residential and auto coverage.
Management emphasized that the company’s “Transformative Growth” strategy is delivering results. CFO John Smith noted that “our focus on cost discipline and targeted investment in high‑return segments has allowed us to absorb the November catastrophe losses while maintaining robust profitability.” He added that the company remains confident in its reinsurance program and reserve adequacy.
Analysts highlighted that the market reaction to the catastrophe loss announcement was muted, as the broader narrative was dominated by Allstate’s strong Q3 earnings beat. The company’s ability to limit losses and sustain earnings growth reassured investors about its resilience to future weather events.
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