Allstate Corporation Reports Mixed Q1 Results Amid Strong Stock Performance
Northbrook, Illinois-based The Allstate Corporation (ALL) provides a wide range of property and casualty insurance products across the United States and Canada. With a market capitalization of $53.1 billion, Allstate operates through various segments, including Allstate Protection, Protection Services, Health and Benefits, Run-off Property-Liability, and Corporate and Other.
Strong Stock Performance Compared to Market
Over the past year, Allstate has notably outperformed the broader market. The stock has risen by 23.5% over 52 weeks, while year-to-date (YTD) gains have reached 6.5%. In contrast, the S&P 500 Index ($SPX) experienced a rise of only 11.5% during the same period. The index has also seen a marginal increase of 60 basis points in 2025.
Competitive Industry Performance
Additionally, Allstate has surpassed the industry-specific Invesco KBW Property & Casualty Insurance ETF (KBWP), which gained 17.2% over the past year and 6.1% YTD.
Q1 Results Show Mixed Performance
However, Allstate’s stock experienced a slight decline following the release of its mixed Q1 results on April 30. The company reported a significant increase in net investment income, demonstrating its commitment to risk and return management. Total revenues rose impressively by 7.8% year-over-year to $16.5 billion, supported by solid premium collections. Nevertheless, this topline growth did not lead to bottom-line gains, as the company faced record gross catastrophe losses of $3.3 billion, partially offset by $1.1 billion in reinsurance recoveries. Consequently, Allstate’s net income fell 52.4% year-over-year to $566 million, while adjusted net income decreased 30.6% to $949 million.
Future Earnings Predictions
Looking ahead, analysts anticipate a 2.2% decline in adjusted earnings per share (EPS) for the current fiscal year, projected to end in December, bringing the estimate to $17.92. Historically, Allstate has exceeded analysts’ earnings expectations, having surpassed estimates in each of the last four quarters. Its adjusted EPS of $3.53 for Q1 exceeded consensus estimates by 56.2%.
Analyst Ratings and Price Targets
Among the 21 analysts covering Allstate stock, the consensus rating stands at “Moderate Buy.” This includes 16 “Strong Buys,” one “Moderate Buy,” two “Holds,” and two “Strong Sells.” This outlook is slightly more favorable compared to three months ago when there were 15 “Strong Buy” ratings.
On May 7, Keefe, Bruyette & Woods analyst Meyer Shields reiterated an “Outperform” rating for Allstate, increasing the price target from $228 to $235. Currently, Allstate’s mean price target of $228.06 implies an 11.1% premium over current price levels. The highest street target of $286 suggests a potential upside of 39.3%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
