Insurance industry rating agency AM Best on Thursday affirmed the financial strength rating of A+ (Superior) for the Allstate Insurance Group.
The Oldwick, N.J.-based firm noted Allstate’s “favorable market position in the private passenger auto and homeowners’ markets” as well as its plan to profit following difficult underwriting and financial results in 2022 and 2023. The plan included increasing rates, enhancing underwriting standards, and expense reductions, AM Best said.
“These measures have resulted in materially improved margins in 2024 and through the first six months of 2025,” the agency added.
The Northbrook, Illinois-based insurer finished 2024 with net income of $4.6 billion compared to a loss of $316 million the prior year. Record catastrophe losses affected results for the first three months of 2025 but the following quarter Allstate booked net income applicable to common shareholders of about $2.1 billion.
“As a result of stronger earnings, Allstate’s risk-adjusted capitalization has benefited from almost 30% statutory surplus growth in 2024,” AM Best said, adding that Allstate’s strength is additionally supported by a comprehensive reinsurance program, “which was enhanced in recent years to reduce overall exposures.”
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