- Protection Services continues to broaden protection to customers through five businesses that primarily embed Allstate branded offerings in non-insurance purchases. Revenues increased to $902 million in the third quarter of 2025, 9.7% higher than the prior year quarter, primarily due to Protection Plans. Adjusted net income of $46 million decreased by $12 million compared to the prior year quarter reflecting higher expenses at Arity and increased claims at Protection Plans.
- Protection Plans continued to expand distribution relationships and product offerings. Revenue of $588 million increased $76 million, or 14.8%, compared to the prior year quarter primarily due to strong international growth. Adjusted net income of $34 million in the third quarter of 2025 was $5 million lower than the prior year quarter due to increased claims.
- Dealer Services generated revenue of $148 million and adjusted net income of $6 million, an increase of $1 million compared to the prior year quarter.
- Roadside revenue of $59 million in the third quarter of 2025 increased 11.3% compared to the prior year quarter reflecting increased bundling with Allstate branded Affordable, Simple, Connected auto insurance products and higher third-party sales. Adjusted net income of $12 million in the second quarter was $2 million higher than the prior year quarter.
- Arity revenue of $68 million decreased $6 million compared to the prior year quarter due to lower lead generation revenue. Adjusted net loss of $8 million in the third quarter of 2025 compared to $1 million of income in the prior year quarter primarily due to increased operating expenses.
- Identity Protection revenue of $39 million in the third quarter of 2025 increased 5.4% compared to the prior year quarter reflecting growth in the employee benefits channel. Adjusted net income of $2 million in the third quarter of 2025 decreased compared to $3 million in the prior year quarter.
- Allstate Investments uses a proactive approach to balancing risk and return for the $82.3 billion portfolio. Net investment income of $949 million in the third quarter of 2025 increased by $166 million from the prior year quarter due to market-based portfolio growth and higher performance-based income.
- Market-based investment income was $780 million in the third quarter of 2025, an increase of $72 million, or 10.2%, compared to the prior year quarter, reflecting increased asset balances and slightly higher yields in the $72.0 billion market-based portfolio.
- Performance-based investment income totaled $227 million in the third quarter of 2025, an increase of $84 million compared to the prior year quarter primarily due to private equity valuation increases. The overall portfolio allocation to performance-based assets provides a diversifying source of long-term returns; quarterly volatility in reported results is expected.
- Net gains on investments and derivatives were $252 million in the third quarter of 2025, compared to $243 million in the prior year quarter. Net gains in the third quarter of 2025 were driven by valuation increases on equity investments and fixed income sales.
- Unrealized net capital gains totaled $452 million (pre-tax), a $403 million improvement to the prior quarter as lower interest rates resulted in higher fixed income valuations.
- Total return on the investment portfolio was 2.0% for the third quarter and 3.8% for the latest twelve months.
- Macroeconomic impacts are regularly monitored through our integrated Enterprise Risk and Return Management framework. In the third quarter of 2025, growth exposure was increased through higher allocation to public equity securities and fixed income portfolio duration was lengthened.
Source: The Allstate Corporation
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