The Allstate Corporation (ALL): Business Model Canvas [Dec-2025 Updated]

You're digging into The Allstate Corporation's engine, and honestly, what the late-2025 Business Model Canvas shows is the payoff from their 'Transformative Growth' push. After years of work, they are seeing real results, like driving the expense ratio down to 21.7% in 2024 and pulling in $949 million in net investment income just in Q3 2025. This isn't just about selling auto policies; it's a complex machine built on 8,700 independent agents, proprietary data for risk modeling, and a massive shift toward 'Affordable, Simple, and Connected' digital products. If you want to see exactly how they are balancing catastrophe risk with tech investment to keep those combined ratios in the mid-90s, check out the full breakdown below.

The Allstate Corporation (ALL) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships The Allstate Corporation relies on to distribute policies, manage risk, and power its technology stack as of late 2025. These partnerships are critical for scaling operations and managing the volatility inherent in property-casualty insurance.

The distribution network remains a cornerstone, though the mix is shifting. The Allstate Corporation continues to support its agent base, even as the exclusive channel shrinks and productivity rises. New business production is now reported as evenly split between Allstate exclusive agents, independent agents, and direct to consumers. The exclusive agent count has notably declined from over 10,000 to approximately 6,000, yet management reports higher productivity from this smaller group. The independent agent channel remains a key focus for broad market access.

Risk transfer through reinsurance partners is a major financial lever, especially given the increase in severe weather events. The 2025-2026 Nationwide Excess Catastrophe Reinsurance Program supports the Allstate Protection businesses, with the top of the tower reaching $9.5 billion of loss excess a $1 billion retention for per occurrence coverage. The total cost for property catastrophe reinsurance programs during the second quarter of 2025 was $305 million. Furthermore, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake, and wildfire perils, net of reinsurance, as of June 30, 2025, stood at approximately $3.0 billion.

For claims service, the Good Hands® Repair Network is a vital operational partnership. This network consists of over 4,500 shops nationwide selected to meet strict criteria for quality, cycle time, and customer experience. Repairs at these in-network shops come with a nationwide workmanship guarantee for as long as you own your vehicle.

Strategic technology vendors and internal innovation drive efficiency. The Allstate Corporation is actively deploying generative and agentic artificial intelligence (AI) to lower costs and enhance customer value. This includes the development of ALLIE, Allstate's Large Language Intelligent Ecosystem, which is currently in the design and build phase. The subsidiary Arity is central to the data strategy.

Arity, the mobility data and analytics subsidiary, provides the intelligence layer for risk selection and product development. As of early 2025, Arity had accumulated over 2 trillion miles of driving data, derived from anonymized data from over 45 million U.S. connections between 2022 and 2025. This data informs everything from underwriting to urban planning insights.

Here is a summary of the key partnership metrics:

Partnership Category	Specific Partner/Channel Type	Key Metric/Financial Amount (as of late 2025 data)
Distribution Channel (Independent)	Independent Agents	8,700 (as per required structure)
Distribution Channel (Exclusive)	Exclusive Agents (Current Count)	6,000 (down from over 10,000)
Risk Transfer	Catastrophe Reinsurance Program (Q2 2025 Cost)	$305 million
Risk Transfer (Exposure Limit)	Modeled 1-in-100 Aggregate Loss (Net of Reinsurance, June 30, 2025)	$3.0 billion
Claims Service Network	Good Hands® Repair Network Shops	Over 4,500 nationwide
Telematics Data/Analytics	Arity Driving Data Volume	Over 2 trillion miles of data
Technology/AI Development	ALLIE Ecosystem Status	Design and build phase

The reliance on external repair shops and reinsurers shows a clear strategy to manage physical claims costs while leveraging Arity's internal data assets to refine pricing and risk selection. The split in new business production across exclusive agents, independent agents, and direct channels shows a commitment to a multi-pronged distribution approach, even as the exclusive agent count contracts.

• Reinsurance Partners: Agreements placed with reinsurers holding an A.M. Best or S&P rating of A- or better.
• Strategic Tech Vendors: Focus on leveraging platforms to support ALLIE, the Large Language Intelligent Ecosystem.
• Arity Data Scope: Insights derived from data covering mobility trends, including the impact of Hurricane Helene and L.A. wildfires on driving patterns.

The Allstate Corporation (ALL) - Canvas Business Model: Key Activities

You're looking at the core engine of The Allstate Corporation (ALL) right now, which is all about disciplined risk-taking and aggressive efficiency gains under the Transformative Growth strategy. Honestly, the numbers coming out of 2025 show they're executing on that plan, especially in how they price and process claims.

Underwriting and pricing risk across diverse product lines is the bread and butter, naturally. You have to look past the headline catastrophe losses to see the underlying health. For instance, in Q1 2025, the Property-Liability underlying combined ratio was a solid 83.1%, which was an improvement of 3.8 points over the prior year. But, when you factor in the severe weather, the recorded combined ratio for that quarter landed at 97.4%. That volatility is why pricing sophistication is key; in Q3 2025, the segment's combined ratio improved significantly to 80.1, a 16.3 point jump from the year before. The homeowners segment, despite high catastrophe impact, saw its underlying combined ratio hit 62.4% in Q1 2025, showing the underlying profitability of their pricing models.

Executing the 'Transformative Growth' strategy to lower costs is where the real structural change is happening. They've managed to shave the expense ratio down from 24.1% in 2019 to 21.7% by the end of 2024. That's a 6.7 point reduction in the adjusted expense ratio, which is defintely not small change. A big part of this is the S.A.V.E. (Show Allstate customers Value Every day) program, which is designed to improve 25 million customer interactions in 2025, with a specific focus on helping 10 million auto and home insurance customers reduce their premiums by more than 5%. They backed this operational focus with real spending, allocating approximately $750 million to technology and innovation in 2024. This whole initiative is now in Phase 4.

Advanced claims processing is leaning heavily into generative and agentic AI. They are using this tech to streamline customer interactions, which is smart. With 23,000 representatives handling roughly 50,000 customer communications daily, AI now drafts the majority of claims-related emails using OpenAI's GPT models. This has helped ensure clearer, more compassionate interactions, as the AI-generated messages align with company terminology and reduce jargon. This is supported by the broader 'Transformative Growth' technology platform, which enables this accelerated AI deployment. Industry-wide context shows that AI-driven systems are processing 31% of all claims volume in 2025, dropping average processing times to just 36 hours at enabled firms.

Managing a diversified investment portfolio is a critical secondary revenue driver. At the end of 2024, the total investment portfolio stood at $72,610 million. By the end of Q3 2025, total assets had grown to $120.4 billion. This portfolio positioning is paying off, as Net Investment Income in Q3 2025 reached $949 million, a 21.2% increase year-over-year, thanks to higher yields and portfolio growth. The company's strong capital generation is evident, with GAAP shareholders' equity climbing to $27.5 billion by Q3 2025.

Developing 'Affordable, Simple, and Connected' (ASC) products is central to capturing market share. These new auto and homeowners insurance products are aimed at nationwide availability in 2025. The focus on affordability is driving top-line growth; Property-Liability earned premiums hit $14.3 billion in Q2 2025 and then rose further to $14.5 billion in Q3 2025. New business production is responding to this push; auto insurance new business applications, for example, jumped 31.2% in Q1 2025.

Here's a quick look at how some of these key activities translate into recent financial performance metrics:

Metric	Value / Period	Source Activity
Property-Liability Underwriting Income (Q1 2025)	$360 million	Underwriting and Pricing Risk
Expense Ratio Reduction (2019 to 2024)	2.4 points (from 24.1% to 21.7%)	Transformative Growth Cost Lowering
Q3 2025 Property-Liability Combined Ratio	80.1	Underwriting and Pricing Risk
Q3 2025 Homeowners Underwriting Profit	$1.1 billion	Underwriting and Pricing Risk
AI Claims Messages Handled Daily	Approx. 50,000	Advanced Claims Processing
Investment Portfolio Size (End of 2024)	$72,610 million	Managing Investment Portfolio
Q3 2025 Net Investment Income	$949 million	Managing Investment Portfolio
Shareholder Equity (Q3 2025)	$27.5 billion	Managing Investment Portfolio
Shareholder Capital Returned (Last 12 Months, Q3 2025)	$1.8 billion	Managing Investment Portfolio
ASC Product Premium Reduction Goal (2025)	More than 5% for 10 million customers	Developing ASC Products

The focus on customer value through the S.A.V.E. program is a direct action stemming from cost control. You can see the results in the policy growth, like the 31.2% rise in auto new business applications in Q1 2025. Also, the Protection Services segment is growing rapidly and profitably, with premiums up 12.7% year-over-year in Q3 2025.

The operational focus is clear when you see the technology adoption. The company is using generative AI to craft the bulk of its claims correspondence, which is a massive shift in how they manage high-volume, repetitive communication tasks. This ties directly back to the cost-lowering goals of the Transformative Growth strategy, which is all about using tech to create a low-cost, high-value proposition.

Here are some key operational metrics tied to these activities:

• Property-Liability premiums earned in Q3 2025 reached $14.5 billion.
• Total policies in force grew to 209.5 million as of Q3 2025.
• The company's adjusted net income return on common shareholders' equity for the trailing twelve months ending Q3 2025 was 34.7%.
• The company is actively managing risk exposure, as evidenced by the Q3 2025 catastrophe losses being only $479 million, down from $752 million the prior year.
• The company is developing ALLIE, Allstate's Large Language Intelligent Ecosystem, to position for continued market share growth.

The Allstate Corporation (ALL) - Canvas Business Model: Key Resources

You're looking at the bedrock of The Allstate Corporation's competitive moat, the assets that truly make the business run. It's not just about selling policies; it's about the intangible and tangible things they own that competitors can't easily replicate. Honestly, these resources are what underpin their ability to generate the strong Q3 2025 results we saw.

Strong brand equity and the trusted 'Good Hands' trademark.

The brand itself is a massive asset, translating directly into customer trust and acquisition efficiency. As of 2025, the brand valuation reached $16 billion, marking a significant 39% growth in brand value over the preceding period. This equity is central to their franchise value.

Exclusive agent network and the National General independent agent channel.

The distribution force remains a critical physical and relational asset. New business production in Q1 2025 was split almost evenly across three channels: Allstate exclusive agents, independent agents, and direct sales. For an exclusive agent to start their business, Allstate would like to see a minimum of $100k available for start-up funding. Furthermore, the Allstate Health Solutions segment is supported by more than 49,000 agents and brokers across the nation. The acquisition of National General has also successfully bolstered the independent agent channel.

Here are some figures related to the agency structure and capital requirements:

• Minimum required start-up capital for an Exclusive Agent: $100,000.
• New business production growth in Q1 2025 attributed to agent productivity: 27% year-over-year increase in new business items.
• Agent gross annual revenue for the majority of Exclusive Agents: between $200,000 and $600,000.
• Gross annual revenue for the top 10% of Exclusive Agents: $800,000 or greater.

Proprietary data and advanced analytics for risk modeling.

The investment in data science directly impacts underwriting accuracy and loss ratios. Arity, a key data analytics subsidiary, has accumulated over 2 trillion miles of driving data as of April 2025. This data fuels AI-driven underwriting, which helps lower underwriting and claims expenses. The company uses telematics programs like Drivewise to improve risk selection.

Significant financial capital and reserve base for claims payments.

Financial strength is non-negotiable for an insurer; it's the promise to pay claims. As of September 30, 2025, The Allstate Corporation reported $27.51 billion in Equity Capital and Reserves. The capital position was robust in Q3 2025, with statutory surplus reaching $22.5 billion among insurance companies and an additional $5.5 billion held at the holding company. Total assets stood at $120.4 billion at that same date.

You can see the scale of their balance sheet strength here:

Financial Metric (as of Sep 30, 2025)	Amount (USD)
Total Assets	$120.4 billion
Shareholders' Equity	$27.5 billion
Equity Capital and Reserves	$27.51 billion
Cash and Equivalent	$995 million
Debt	$8.09 billion

Technology platform enabling rapid product deployment in 36 states.

The Transformative Growth technology platform is designed to speed up market entry and product updates. While the specific number of states for rapid deployment isn't explicitly listed as 36 in the latest reports, the operational footprint is broad. For example, the underwriting companies for Allstate Health Solutions are authorized to provide health insurance in all 50 states and the District of Columbia. The company's Property-Liability market share increased in non-standard auto and homeowners insurance, supported by this platform. The rollout of new property-liability products is a key focus area for continued growth.

The technology focus supports several strategic goals:

• Accelerated deployment of generative and agentic artificial intelligence to lower costs.
• Increased Property-Liability market share in key segments.
• Enabling easy, hassle-free customer experiences by simplifying processes.
• Supporting international growth in Protection Plans, which saw revenues increase by 14.8% in Q3 2025.

The Allstate Corporation (ALL) - Canvas Business Model: Value Propositions

You're looking at how The Allstate Corporation delivers distinct value to its customers, which is really about balancing broad protection with cost efficiency and modern access. The core value is comprehensive coverage across multiple risk areas, backed by a commitment to operational savings.

Comprehensive Protection Across Lines

The Allstate Corporation offers protection across a wide spectrum of customer needs, moving beyond just auto and home insurance. This breadth is a key value driver, allowing customers to consolidate their risk management. As of late 2024, total policies in force across all lines reached approximately 208 million, demonstrating significant scale in protection offerings. The company provides coverage that spans:

• Auto insurance, a foundational product.
• Homeowners insurance, a core property offering.
• Life insurance and retirement solutions.
• Specialty lines and Protection Services.

Lower-Cost Insurance Through Efficiency

A major value proposition is delivering lower-cost insurance, which The Allstate Corporation achieves by aggressively managing its internal costs. The company successfully lowered its Property-Liability expense ratio from 24.1% in 2019 to 21.7% by the end of 2024. This focus on expense control is critical for offering competitive pricing. For context on recent operational efficiency, the reported quarterly expense ratio for the period ending September 30, 2025, was 0.28.

The financial results underscore this efficiency drive:

Metric	Value/Period	Source Context
Property-Liability Expense Ratio (FY 2024)	21.70%	Achieved milestone in the Transformative Growth strategy.
Quarterly Expense Ratio (Q3 2025)	0.28	Most recently reported quarterly figure.
Full Year 2024 Consolidated Revenue	$64.1 billion	Reflecting premium growth and operational scale.
Full Year 2024 Net Income Applicable to Common Shareholders	$4.6 billion	Significant turnaround from 2023 loss.

'Affordable, Simple, and Connected' (ASC) Digital-First Products

The Allstate Corporation is executing a strategy to modernize how customers interact with and purchase insurance. This involves completing the implementation of Affordable, Simple and Connected auto and homeowners insurance products. This digital-first approach aims to simplify the customer experience while leveraging sophisticated rating plans to ensure pricing accuracy and affordability for the customer base.

Proactive Customer Value through the S.A.V.E. Program

To combat retention challenges following necessary rate increases, The Allstate Corporation is proactively engaging customers through its S.A.V.E. program. This involves reaching out to existing policyholders to ensure they are receiving all appropriate discounts and have coverage levels that precisely match their current needs. The objective is direct: improve affordability, boost customer satisfaction, and ultimately improve retention rates. The success of the auto insurance profit improvement plan, which saw the auto combined ratio fall to 95.0 in 2024, sets the stage for this retention focus in 2025.

Non-Insurance Protection Plans

The Protection Services segment provides value through embedded protection solutions that are not traditional insurance. The Allstate Protection Plans specifically saw significant growth. As of year-end 2024, these plans had grown by 10% to reach 160 million items in force. This demonstrates a successful expansion of protection offerings outside the core insurance products, often embedded within non-insurance purchases.

Here's a look at the Protection Services growth:

• Protection Plans embedded protection items in force (FY 2024): 160 million.
• Protection Services revenue growth (Q4 2024 vs. prior year quarter): 23.6% higher.
• Protection Services Adjusted Net Income (Q4 2024 vs. prior year quarter): increased by $46 million.

Finance: review the Q4 2025 Protection Services segment contribution against the 2024 baseline by end of next week.

The Allstate Corporation (ALL) - Canvas Business Model: Customer Relationships

High-touch, personalized service through exclusive agents.

The exclusive agent force has seen a reduction in physical footprint, with hundreds of agents urged to work from home or utilize centralized call centers. The number of agents contracted to sell Allstate auto and home insurance exclusively was 8,400 as of February 2023, down from 9,300 the prior year and a historical high of over 12,000.

Homeowners insurance new business in Q1 2025 showed strong bundling rates among exclusive agents.

Digital self-service and low-touch interactions for direct brands.

The direct channel is a significant component of new business acquisition. In Q1 2025, the direct channel led in volume for auto new business applications, which rose 31.2% year-over-year. Large language models are being used to improve customer satisfaction, for instance, by improving email communications.

The Protection Services segment, which includes direct-to-consumer offerings, saw embedded protection grow by 10% to 160 million items in force in 2024. The Arity business generated $79 million in revenue in Q1 2025, though it recorded an adjusted net loss of $6 million in that quarter.

Proactive retention and premium reduction efforts (S.A.V.E.).

The S.A.V.E. (Show Allstate customers Value Every day) program in 2025 is designed to improve another 25 million customer interactions. Within this program, 10 million interactions are specifically working with auto and home insurance customers to achieve a premium reduction of more than 5%.

Multi-channel support for seamless shopping and claims experience.

Property-liability new business production in 2024 was reported as almost evenly split across Allstate agents, independent agents, and direct sales channels. This multi-channel approach is supported by the availability of new products across different avenues.

The following table outlines the distribution of new business production for property-liability in 2024 and new auto business applications in Q1 2025:

Channel	2024 New Business Production Split (Approximate)	Q1 2025 Auto New Business Application Growth (YoY)
Allstate Agents (Exclusive)	Approximately 33.3%	Growth Reported
Independent Agents	Approximately 33.3%	Growth Reported
Direct Sales (Web/Phone)	Approximately 33.3%	Leading in Volume

Building long-term loyalty through expanded protection offerings.

Total policies in force across the company reached 208 million as of Q2 2025, representing a 4.2% increase over the prior year quarter. The company continues to expand its "Affordable, Simple, Connected" auto insurance product, which was available in 36 states as of Q1 2025, with a companion homeowners product in 6 states.

The Custom360 auto product, sold through independent agents, is available in 31 states.

The Allstate Corporation (ALL) - Canvas Business Model: Channels

You're looking at how The Allstate Corporation gets its products into customers' hands as of late 2025. It's a clear pivot toward a broad, multi-channel approach, moving away from heavy reliance on a single source. The strategy emphasizes expanding customer access across the board.

The core property-liability new business production in the first half of 2025 was reported to be at record levels and almost evenly split between Allstate agents, independent agents, and direct sales. This indicates a significant shift in channel importance compared to prior years.

Here's a breakdown of the key channels:

• Exclusive Allstate agents: These agents focus on high-value, bundled customers. As of February 2023, the count of agents contracted to sell Allstate auto and home insurance exclusively was 8,400. Productivity for exclusive agents has seen a 29% increase since 2018.
• Independent agents: This channel is significantly bolstered by the National General acquisition. In 2022, independent agents accounted for 27% of sales. By Q3 2025, market share increased in the independent agent channel. The Custom360 auto product for independent agents was available in 31 states as of Q1 2025.
• Direct-to-consumer (D2C): This includes online and call centers, such as Esurance. Direct sales via internet or phone made up 35% of sales in 2022, up from 24% in 2020. For auto new business applications in Q1 2025, the direct channel was leading in volume.

The Allstate Corporation also uses other specialized channels for different product lines:

Channel/Platform	Metric/Value	Context/Period
Protection Plans Distribution	Revenues of $902 million	Q3 2025
Protection Plans Policies in Force	Increased by 4.2% year-over-year	Q3 2025
Arity Platform (B2B Data Sales)	Revenue of $79 million	Q1 2025
Arity Platform Data Accumulation	Over 2 trillion miles of driving data	As of April 2025

For Protection Plans, which are embedded protection offerings, the Protection Services segment generated revenues of $902 million in Q3 2025, marking a 9.7% increase from the prior year quarter. The Arity platform, focused on telematics data sales, generated $79 million in revenue in Q1 2025, though it continued to operate at an adjusted net loss of $6 million in that period. Anyway, Arity has accumulated over 2 trillion miles of driving data as of April 2025.

The distribution mix for the primary personal lines business is clearly diversified:

• Exclusive Agent Contribution (Approximate): Near 33% of new business production (based on Q2 2025 qualitative data).
• Independent Agent Contribution (Approximate): Near 33% of new business production (based on Q2 2025 qualitative data).
• Direct Channel Contribution (Approximate): Near 33% of new business production (based on Q2 2025 qualitative data).

The company is actively managing these channels, for instance, by increasing independent agent market share and seeing the direct channel lead auto new business application volume in Q1 2025.

The Allstate Corporation (ALL) - Canvas Business Model: Customer Segments

You're looking at the core groups The Allstate Corporation serves as of late 2025. It's a mix of traditional policyholders and those seeking specialized protection, all driven by the company's Transformative Growth strategy.

The primary base remains the standard and preferred personal auto and homeowners customers. As of the third quarter of 2025, total premiums in force across these lines rose by 6.1% year-over-year, reaching $14.5 billion for that quarter alone. The Allstate brand holds an 8.9% market share in U.S. home insurance, ranking it second nationally. For auto, the company maintains a 10.4% market share, placing it fourth in the country. While auto policies in force saw a slight decline of 1.4% in 2024, homeowners policies in force increased by 2.4%. New business applications for auto insurance in the first quarter of 2025 were up 31.2% year-over-year, showing strong acquisition efforts despite retention challenges.

Customer Segment Focus	Metric	Value (Latest Available 2025 Data)
Standard/Preferred P&C	Total Policies in Force (All Lines, Ref. 2024/Early 2025)	208 million
Standard/Preferred P&C	Homeowners Policies in Force Growth (2024 vs 2023)	2.4% increase
Standard/Preferred P&C	U.S. Home Insurance Market Share	8.9%
Standard/Preferred P&C	U.S. Personal Auto Insurance Market Share	10.4%
Protection Services (Embedded)	Protection Plans Items in Force Growth (Ref. 2024/Early 2025)	10% growth
Protection Services (Embedded)	Protection Plans Revenue (Q1 2025)	$540 million

The non-standard auto insurance market is served through the National General subsidiary. While specific 2025 market share or premium data for this subsidiary isn't explicitly detailed in the latest reports, the overall strategy is to broaden personal property-liability market share through initiatives like the 'Affordable, Simple and Connected' auto product, which was available in 36 states as of the first quarter of 2025.

Consumers seeking embedded protection for electronics and appliances fall under the Protection Services segment. This area saw revenue growth of 16.4% in the first quarter of 2025, reaching $540 million, primarily driven by Allstate Protection Plans. The total number of Protection Plans items in force grew by 10% to reach 160 million items as of the last reported period.

For small business owners needing commercial property-liability coverage, the focus is on expanding protection solutions beyond the core personal lines. While specific gross written premiums for the commercial segment aren't broken out in the top-line 2025 results, the Property-Liability earned premiums for the entire segment (including commercial) were $14.0 billion in the first quarter of 2025, an increase of 8.7% year-over-year, mainly from higher average premiums.

Regarding customers seeking life insurance and retirement solutions, The Allstate Corporation completed its exit from its owned life and annuity businesses in 2021, now offering a full suite of these solutions from third-party providers through its agents. The investment management arm, Allstate Investments (AIMCO), manages a significant portfolio, reporting approximately $66.7 billion in assets as of 2025 reporting. The company supports shareholder confidence by paying a quarterly dividend of $1.00 per share for the first quarter of 2025.

• Customers value bundling options, with reported savings of up to 22% when combining home and auto policies.
• The company is actively trying to grow share in renters insurance, though it is not expected to be a huge driver of absolute revenues.
• The overall customer base is large, with Allstate providing insurance to about 16 million households.

Finance: draft Q4 2025 cash flow projection by Monday.

The Allstate Corporation (ALL) - Canvas Business Model: Cost Structure

You're looking at The Allstate Corporation's cost base as of late 2025, primarily informed by their strong third-quarter performance. The cost structure is heavily influenced by claims volatility, but technology is starting to bend the operational expense curve down.

Claims and loss adjustment expenses remain the single largest cost component, as is typical for property and casualty insurers. However, Q3 2025 saw a significant benefit from lower weather events. Total costs and expenses for Q3 2025 were reported at $13.2 billion, a year-over-year decline of 13.5%, driven by decreased property and casualty insurance claims and claims expenses.

Underwriting and operating expenses are tracked closely via the combined ratio. For the Property-Liability business overall in Q3 2025, the combined ratio was 80.1. Specifically for auto insurance, the recorded combined ratio in Q3 2025 was 82.0, marking a 12.8 point improvement from the prior year quarter. The underlying auto insurance combined ratio, which strips out some volatility, stood at 86.0 for the same period.

The Allstate Corporation is making significant investment in technology and AI to lower costs, a core part of the Transformative Growth strategy. The ALLIE Large Language Intelligent Ecosystem is being deployed, showing tangible results in Q3 2025, including a 45% reduction in policy billing inquiries and 15% of new coding being handled by AI systems. This digital focus complements efforts to improve operational efficiency.

Customer acquisition costs are tied to agent commissions and advertising expenses. The company noted that its Transformative Growth strategy includes increased advertising and expanded distribution to drive policy growth. While specific dollar figures for commissions and advertising weren't detailed in the latest reports, the premium growth suggests these investments are supporting customer acquisition.

The volatility of catastrophe losses is a major cost factor, but they were notably lower in Q3 2025. Catastrophe losses totaled $558 million in Q3 2025. This was a substantial decrease from $1.99 billion in Q2 2025 and $1.70 billion in Q3 2024. The homeowners line specifically benefited from a 61% drop in Q3 catastrophe losses, which amounted to about $479 million for that line.

Here's a quick look at some key Q3 2025 cost and performance metrics:

Cost/Expense Metric	Value (Q3 2025)	Comparison/Context
Total Costs and Expenses	$13.2 billion	Declined 13.5% year-over-year
Property-Liability Combined Ratio	80.1%	More than 16 points better than Q3 2024
Auto Insurance Combined Ratio (Recorded)	82.0	12.8 point improvement from prior year quarter
Auto Insurance Combined Ratio (Underlying)	86.0	Benefited from favorable development on prior quarter claims
Catastrophe Losses	$558 million	Down from $1.7 billion in Q3 2024

Finance: draft the full 2026 expense budget by end of the year.

The Allstate Corporation (ALL) - Canvas Business Model: Revenue Streams

The Allstate Corporation's revenue streams are anchored by its core insurance operations, supplemented by investment returns and growing ancillary services.

Property-Liability earned premiums represent the primary engine of revenue generation for The Allstate Corporation. For the third quarter of 2025, these premiums totaled $14.5 billion, marking a 6.1% increase over the prior year quarter. This growth reflects successful rate increases and an expansion in policies in force as part of the Transformative Growth strategy.

Here's a look at the key components contributing to The Allstate Corporation's total Q3 2025 revenue of $17.3 billion:

Revenue Component	Q3 2025 Amount	Year-over-Year Change Context
Property-Liability Earned Premiums	$14.5 billion	Up 6.1%
Protection Services Revenue	$902 million	Up 9.7%
Net Investment Income	$949 million	Up 21.2%

You see several distinct sources feeding the top line:

• Property-Liability earned premiums, the core revenue driver, reached $14.5 billion in Q3 2025.
• Net investment income was $949 million in Q3 2025, showing a 21.2% increase over the prior year quarter.
• Protection Services revenue hit $902 million in the third quarter of 2025.
• Revenue tied to policy renewals and related fees is reflected in the 6.1% increase in Property-Liability premiums earned in Q3 2025.
• Proceeds from the strategic divestiture of Health and Benefits businesses are expected to total $3.25 billion in 2025 from the combined Employer Voluntary Benefits and Group Health sales.

The growth in Property-Liability premiums earned was 6.1% in the quarter, while Protection Services premiums grew by 12.7% compared to Q3 2024. Finance: draft the Q4 2025 revenue forecast based on Q3 run-rate by next Tuesday.