Allstate Affirms A+ Financial Strength Rating with Improved Margins and Enhanced Reinsurance Program.

AM Best has affirmed the A+ (Superior) financial strength rating for Allstate Group members. The rating agency cites Allstate's favorable market position in private passenger auto and homeowners' markets, as well as its plan to profit from difficult underwriting and financial results in 2022 and 2023. Allstate's measures have led to improved margins in 2024 and the first six months of 2025. The insurer finished 2024 with a net income of $4.6 billion and posted $2.1 billion in net income in the second quarter of 2025.

Title: AM Best Affirms Allstate's Superior Financial Strength Rating

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) for the Allstate Group members, reflecting the insurer's robust balance sheet and strong operating performance. The rating agency cited Allstate's favorable market position in private passenger auto and homeowners' markets, as well as its strategic measures to address underwriting and financial challenges in 2022 and 2023. These efforts have led to improved margins in 2024 and the first half of 2025, with Allstate reporting a net income of $4.6 billion in 2024 and $2.1 billion in the second quarter of 2025 [1].

The ratings also reflect Allstate's strong balance sheet, which includes a comprehensive reinsurance program and access to capital markets. The insurer's financial leverage and coverage metrics are within AM Best's expectations and adequate for its current ratings. AM Best noted that Allstate's extensive distribution capabilities have historically contributed to sustained profitability and robust cash flow.

Allstate's measures to address economic challenges and increased pressures from catastrophic events include increasing rates, enhancing underwriting standards, and reducing expenses. These actions have resulted in materially improved margins. The insurer's risk-adjusted capitalization has benefited from almost 30% statutory surplus growth in 2024, with the Best Capital Adequacy Ratio (BCAR) improving compared to the 2023 level, although it remains below historical levels.

AM Best also affirmed the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) for Allstate Insurance Group members and the FSR of A- (Excellent) for the ASMI Auto Group members. The ratings for these groups reflect their very strong balance sheet strength and adequate operating performance, as well as appropriate enterprise risk management (ERM).

For more information on Allstate's financial performance and ratings, please refer to the complete listing available on AM Best's website.

References:
[1] https://www.morningstar.com/news/business-wire/20250828504579/am-best-affirms-credit-ratings-of-the-allstate-corporation-and-its-core-subsidiaries