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- **Revenue Growth**: Q3 2025 revenue up 5.8% year-to-date to $17.3 billion, driven by Property-Liability and Protection Services expansion.
- **AI Transformation**: ALLIE initiative reduces costs and enhances customer experience, with generative AI handling 15% of claims coding.
- **Financial Strength**: $3 billion adjusted net income, 34.7% ROE, and $949 million net investment income, with $1.6 billion returned to shareholders.
- **Strategic Focus**: Prioritizing organic growth, AI investments, and flexible capital allocation for M&A opportunities.
- **Market Resilience**: Auto insurance pricing rate-adequate, homeowners business maintains low 90s combined ratio, and nonstandard auto growth offsets retention challenges.

**【CEO Summary Section】**
- Allstate reported Q3 2025 revenue of $17.3 billion, up 5.8% year-to-date, driven by Property-Liability growth and Protection Services expansion. Adjusted net income was $3 billion ($11.17 per share), with a 34.7% return on equity over 12 months.
- The transformative growth initiative, now in Phase 4, has reduced the expense ratio by 6.7 points and expanded distribution through agents, independent channels, and direct sales. Auto insurance new business is evenly split across all three channels.
- AI initiatives (ALLIE) are being rolled out to enhance customer interactions, claims processing, and operational efficiency. Generative AI is already handling 15% of claims coding, while Agentic AI aims to reimagine customer value across the business model.

**【CFO Financial Commentary】**
- Net investment income reached $949 million in Q3, up 21.2% year-over-year, with a 5-year portfolio book value increase of 39% ($23 billion). The company returned $1.6 billion to shareholders through dividends and buybacks, maintaining a 3.5% yield on average equity.
- Shareholders' equity grew to $27.5 billion, reflecting strong profitability and capital deployment. The investment portfolio is being actively managed to balance interest rate risk, with duration extended in 2023-2024 to capture higher yields.

**【Q&A Key Highlights】**
- **Capital Allocation**: CEO Thomas Wilson emphasized prioritizing organic growth and AI investments over dividends, with $1.5 billion in buybacks approved. Excess capital at the holding company is kept flexible for M&A or share repurchases.
- **AI Impact**: ALLIE is expected to reduce costs and improve customer retention by personalizing experiences. Generative AI is already operational in claims and actuarial work, with Agentic AI in development to reimagine customer interactions.
- **Retention Strategies**: The S.A.V.E. program has reduced premiums for 5 million customers, while ASC (Affordable, Simple, Connected) products are being rolled out to improve retention in active brands.
- **Market Dynamics**: Auto insurance pricing is rate-adequate, with minimal rate changes needed. Homeowners insurance maintains a competitive advantage with a low 90s combined ratio. Nonstandard auto growth in independent and direct channels is offsetting retention challenges.
- **Inflation Management**: Investment portfolio duration was extended to capture higher yields, while bodily injury inflation is mitigated by tort reforms in states like Florida and Georgia.

The Allstate Corporation (ALL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ALL

ALL fundamentals

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