Allstate reported Q1 2026 net income of $2.4 billion late Tuesday, more than four times its $566 million profit from the same period last year. Auto policies grew 2.6% to 25.8 million, and the auto insurance combined ratio improved to 81.9 from 91.3, signaling that the multi-year rate-hike cycle is finally winding down.
Allstate ranks as the country's second-largest auto insurer, and Q1 2026 marks its sharpest shift from defensive pricing to active customer growth in three years. New auto business jumped 9.4% year-over-year, and the company gained market share in many states, according to CEO Tom Wilson.
Allstate posted $2.4 billion in Q1 2026 net income, total revenue of $16.9 billion, and diluted EPS of $9.25. Auto policies in force rose to 25.8 million, new auto business climbed 9.4%, and the auto combined ratio dropped to 81.9. Q1 net rate changes across Allstate brands totaled just $2 million in decreases, the lightest pricing quarter since 2024.
- Net income climbed to $2.4 billion from $566 million in Q1 2025
- 25.8 million auto policies in force, a 2.6% year-over-year gain
- Auto combined ratio: 81.9, including $820 million in prior-year reserve releases
- Of 39 states with Q1 rate filings, 23 saw decreases and 16 saw increases
- Catastrophe losses fell 43.7% to $1.24 billion from $2.20 billion
What Allstate Reported
Total revenue reached $16.9 billion, a 3% gain over Q1 2025, while diluted EPS of $9.25 came in well above the $2.11 reported a year ago. Adjusted net income was $2.8 billion, and adjusted EPS hit $10.65 compared with $3.53 in Q1 2025. The company returned $881 million to shareholders through dividends and buybacks during the quarter.
Auto underwriting income alone reached $1.7 billion, more than double the $816 million Allstate booked in Q1 2025. The underlying auto combined ratio (which strips out catastrophe losses and prior-year reserve adjustments) improved 1.7 points to 89.5, showing the gain was not just a one-time accounting benefit.
"Allstate's strategy and execution capabilities generated strong earnings and increased growth in the first quarter," said Tom Wilson, Allstate Chairman and CEO. He cited expanded distribution, increased marketing, new products, and "sophisticated rating plans" as the growth drivers.
What the Numbers Mean for Policyholders
An 81.9 auto combined ratio is the consumer-facing signal here. Insurance is profitable when that number stays below 100, and Allstate's auto book printed almost 18 points below break-even. The 81.9 figure ranks as the strongest Q1 auto result Allstate has posted since 2021, when the post-pandemic driving recovery briefly held loss costs down.
Filing data backs up the slowdown. Allstate implemented just $2 million in net auto rate changes across brands during Q1 2026, after putting through $81 million in Q4 2025, $232 million in Q3 2025, and $126 million in Q2 2025. Of the 39 states where Allstate adjusted rates this quarter, 23 saw decreases, 16 saw increases, and 10 had a mix of both depending on the brand or product. ValuePenguin's 2026 rate analysis estimates Allstate's average renewal increase nationwide at just 1.98%, far below the 7.92% expected at Erie or 21.18% at NJM.
Higher-risk drivers still face pricing pressure. Drivers with a DUI, weak credit-based insurance score, or recent at-fault accidents continue to see double-digit increases at renewal, according to ValuePenguin's data. The pricing shift now favors clean records and good credit far more than it did during the 2022-2024 hike cycle.
Read our Allstate auto insurance review for a full breakdown of who Allstate prices best for in 2026.
How Allstate Stacks Up Against the Industry
Allstate's Q1 result tracks closely with peer carriers reporting similar earnings windfalls. Progressive posted Q1 2026 net income of $2.8 billion on premiums of $21 billion, which we covered in our analysis of Progressive's Q1 2026 earnings. State Farm announced a $5 billion customer dividend in February, the topic of our coverage of State Farm's $5 billion auto refund. The top three U.S. auto insurers all generated record underwriting profits in Q1 2026.
| Carrier | Q1 2026 Net Income | Auto Combined Ratio | Auto Policy Growth (YoY) |
|---|---|---|---|
| Allstate | $2.4B | 81.9 | +2.6% |
| Progressive | $2.8B | ~86 (Q1) | +8% (PIF) |
| State Farm | $5B dividend declared | FY 2025 reference | Mutual; not publicly quarterly |
Source: Allstate Q1 2026 PR Newswire release, Progressive Q1 2026 10-Q, State Farm February 2026 dividend announcement. Allstate's auto combined ratio of 81.9 is the recorded figure including reserve releases; the underlying ratio is 89.5.
Industrywide, auto insurance profitability hit a 15-year high in 2025, as we explained in our market outlook on insurer profitability. Three years of compounding rate increases averaging 12% to 18% annually finally outpaced claim severity inflation, which we broke down in our analysis of how inflation redefined claim severity.
What You Should Do Before Your Next Renewal
Check Your Renewal Notice Closely
If you live in one of the 23 states where Allstate filed Q1 decreases, your renewal premium may be flat or lower. Compare the new premium against last year's and ask your agent to itemize any rating-factor changes.
Pull at Least Three Competing Quotes
Progressive, GEICO, and Travelers all reported strong Q1 results too. Carriers competing for new business often beat your renewal by 10% to 20% on the same coverage. Match limits and deductibles exactly when comparing.
Enroll in Drivewise If You Have Not
Allstate's telematics program offers up to 40% off after the monitoring period for safe driving habits. With pricing flexibility expanding, agents have more room to apply program discounts than they did 12 months ago.
Bundle If You Have Homeowners or Renters
Allstate homeowners policies grew 2.5% in Q1 to 7.7 million, and the company posted $685 million in homeowners underwriting income. Bundle discounts often run 15% to 25% on auto premium.
The improving combined ratio does not protect drivers with DUIs, recent at-fault accidents, or weak credit-based insurance scores. Carriers are pricing risk more aggressively at the individual level even as average rates flatten. Compare non-standard carriers like Direct Auto, Bristol West, and Acceptance against your Allstate renewal if you fit this profile.
Looking Ahead
Allstate's Affordable, Simple, Connected auto product is now in 45 states, and the Custom360 middle-market product covers 40 states, according to the company's Q1 release. Both are designed to defend against carrier-shoppers, and both are likely targets for renewal-period offers throughout summer 2026. Wilson said on the April 30 conference call that Allstate gained market share in auto and homeowners insurance "in many states" during the quarter.
Watch for state-level rate filings on the National Association of Insurance Commissioners SERFF database to see exactly when decreases hit your state. We covered Travelers' 10.1% rate cut in Georgia in our April analysis, and similar competitive filings from Allstate are expected to follow in Q2.
Frequently Asked Questions
Q1 2026 net rate changes across Allstate brands totaled just $2 million in decreases, compared with $81 million in increases during Q4 2025. Rate stability has effectively arrived at the company level. Whether your individual renewal goes up depends on your state, your driving record, and your credit-based insurance score. Of the 39 states where Allstate filed adjustments, 23 saw decreases.
A combined ratio measures losses plus expenses divided by premiums. Anything below 100 means the carrier is profitable on underwriting alone. At 81.9, Allstate is about 18 points below break-even, the strongest auto result it has posted since 2021. That margin gives the company room to slow or stop rate increases and to compete more aggressively on new business.
Compare quotes before switching. Progressive grew auto policies in force 8% in Q1 2026, and State Farm is paying $5 billion back to its customers. All three are competing harder than they did 12 months ago. Pull quotes at the same coverage limits and deductibles, then compare the renewal offer Allstate sends you against those competitors. Loyalty discounts at Allstate may still beat a switch.
Three drivers explain it: catastrophe losses fell 43.7% to $1.24 billion (from $2.20 billion), prior-year auto reserves released $820 million, and the underlying auto combined ratio improved 1.7 points on better loss costs. The combination of fewer catastrophes, accurate-to-favorable reserve estimates, and better core underwriting produced the swing.
Not directly. ValuePenguin's 2026 rate analysis shows drivers with DUIs, recent at-fault accidents, or weak credit-based insurance scores are still seeing double-digit renewal increases. Carriers are using better data to price individual risk more precisely instead of raising rates broadly. Clean-record drivers benefit; higher-risk drivers continue to face pressure.
- PR Newswire - Allstate Reports Strong Earnings and Increased Growth (April 29, 2026)
- Insurance Journal - Allstate Q1 Net Income Skyrockets on Underwriting Gains
- Insurance Business - Allstate Outperforms Peers with Sharp Q1 Turnaround in Personal Lines
- ValuePenguin - State of Auto Insurance 2026
- Allstate Investor Relations - Q1 2026 Investor Supplement
- Motley Fool - Allstate Q1 2026 Earnings Transcript