Allstate Corp (The)

Strong earnings + underwriting performance (good): - 2Q26 net premiums written +2.6%, supported by continued auto + homeowners growth and issued applications +9.9%. - Total policies in force +3.8% to 215.9M (Property-Liability +2.6%; Protection Services +4.1%). - GAAP net income $3.2B; adjusted net income $2.3B ($8.99/share). - Combined ratio 86.6% (reported), improving 4.5 points YoY; underlying combined ratio 79.4% (roughly in line with prior-year quarter). - Investment income +33.8% to $1.0B, benefiting from longer duration and portfolio size/performance; also capital gains from prior equity increases.

Capital generation + shareholder returns (good, with specifics): - Company highlighted high adjusted ROE ~44.2% over last 12 months. - 2Q share repurchases $1.0B; total returned to shareholders $1.3B in the quarter. - $2.6B remaining under the $4B repurchase authorization announced in February; management said they intend to complete the $4B. - Holding company deployable capital $9.5B (~$37/share)—management argues they can fund growth, investments, and buybacks simultaneously.

Technology/AI focus: “technology-driven” + Ally rollout (surprising/important, but not fully quantified): - Management claims Allstate is already deeply analytics-driven: 250+ analytical models, 40 petabytes of data, 1.5B CPU compute hours, 100M+ quotes, 50M leads with sub-second response times. - Building Ally, an agentic AI ecosystem intended to improve customer value, lower cost, and increase growth via an architecture with 8 integrated components and an orchestration layer from the “transformative growth initiative.” - CFO emphasis: no major barrier to continuing tech investment; no reliance on public LLMs for their own core work (aiming to avoid data leakage to third-party models).