Financial Results
Allstate Enhances Customer Value, Lowers Prices for 7.8 Million Customers in 2025
The Allstate Corporation (NYSE: ALL) today reported financial results for the fourth quarter of 2025.
"Allstate had a terrific year by better serving customers and making protection more affordable," said Tom Wilson, who leads The Allstate Corporation. "We proactively reduced premiums for 7.8 million auto and homeowners insurance customers by an average of 17% through tailored coverage reviews to offset cost inflation. We also improved 69 million customer interactions and provided customers with nearly $38 billion in support and financial resources when the unexpected happened in 2025."
"Total policies in force increased to 210.9 million in the fourth quarter, up 3.0% from the prior year, driven by broad distribution and affordable, simple, connected products. Revenues increased to $17.3 billion in the fourth quarter and $67.7 billion for the full year. Full-year net income was $10.2 billion and adjusted net income* was $9.3 billion.
Fourth Quarter 2025 Results
- Total revenues of $17.3 billion in the fourth quarter of 2025 were $839 million or 5.1% higher than the prior year quarter.
- Net income applicable to common shareholders was $3.8 billion in the fourth quarter of 2025, compared to $1.9 billion in the prior year quarter, reflecting strong operating results.
- Adjusted net income* was $3.8 billion, or $14.31 per diluted share, compared to $2.1 billion in the prior year quarter.
Full Year 2025 Results
- Total revenues were $67.7 billion, 5.6% above the prior year.
- Net income applicable to common shareholders was $10.2 billion compared to $4.6 billion in 2024.
- Adjusted net income was $9.3 billion generating an adjusted net income return on equity of 38.3%.
Property-Liability combined ratio was 72.9 for the quarter, which was an improvement of 14.0 points versus the prior year quarter due to higher average earned premiums, the benefit of non-catastrophe reserve releases and lower catastrophe losses.
Chubb sees record P&C underwriting income of $6.53bn in 2025 - Reinsurance News
In its full-year 2025 and Q4 results, Chubb reported record P&C underwriting income of $6.53 billion, an 11.6% increase over 2024, alongside a record-low combined ratio of 85.7%.
Evan G. Greenberg, Chubb’s Chairman and CEO, hailed 2025 as a great year, highlighting strong contributions across the firm’s operations.
“Our consistent and enduring performance reflects the broadly diversified, global nature of our business,” he added.
For the full-year 2025, P&C net premiums written reached $47.56 billion, up 5.4% from 2024.
By region, North America grew 4.7%, including a 7.5% rise in personal insurance and 3.9% in commercial insurance. Overseas General increased 7.5%, driven by an 11% gain in consumer insurance and 5.2% in commercial insurance. Growth in key international markets was also strong, with Asia up 10.7%, Latin America 6.3%, and Europe 5.9%.
Pre-tax net investment income was $6.47 billion, up 9% from 2024, and adjusted net investment income was $6.95 billion, also up 9%—both records.
Greenberg commented, “Our full-year results in virtually every category were the best in our company’s history. Notably, these results were achieved in spite of full-year CAT losses being modestly higher than the prior year, substantially driven by the California wildfires in the first quarter.
Markel Group reports 2025 financial results
Markel Group Inc. (NYSE: MKL) today reported its financial results for the quarter and year ended December 31, 2025.
"In 2025, the Markel Group delivered meaningful progress. Operating income was $3.2 billion and adjusted operating income exceeded $2.3 billion, with every reportable segment making meaningful contributions," said Tom Gayner, Chief Executive Officer.
"Within Markel Insurance, we took a series of decisive actions to simplify and refocus the business. Thank you to that team, and to everyone across the Markel Group. By staying true to our values, while providing exceptional businesses and leaders a home in which to grow and thrive, we believe the Markel Group is well-positioned to continue compounding shareholder value across generations."
Summary of our fourth quarter and full year results:
- Operating revenues increased 8% for the quarter and 5% for the year.
- Operating income, which includes market movements in our equity portfolio, increased 34% for the quarter and decreased 14% for the year.
- Adjusted operating income, which excludes market movements in our equity portfolio, increased - 19% for the quarter and 10% for the year.
For Markel Insurance, our cornerstone business: - Operating revenues increased 7% for the quarter and 4% for the year. - Adjusted operating income increased 31% for the quarter and 16% for the year due to improved underwriting profitability and higher net investment income. - The combined ratio improved by three points for the quarter to 93% and one point for the year to 95%. - The average annual return on equity was 13% for the past five years and 14% for 2025.
2026 Outlook/Predictions
What Analysts Are Saying About the 2026 P/C Insurance Market
Following in the footsteps of groundhog Punxsutawney Phil, analysts from Fitch Ratings and Morningstar weighed in with these P/C insurance market forecasts in the past week:
- “Fitch Ratings expects the U.S. property/casualty market to continue softening in 2026, with increased competition, abundant capital and downward pricing pressure.
- “Despite the high number of litigations and escalating payouts, the U.S. casualty insurance market is still an attractive market because of its size, product and regional diversity, and pricing flexibility,” according to Morningstar.
- “We expect casualty insurance pricing to remain divergent from the rest of the P&C insurance market in the near term,” said Victor Adesanya, Morningstar’s Senior Vice President, Global Insurance & Pension Ratings.
- “Overall, we do not anticipate softening rates in the P/C market to pressure credit ratings, as most insurers benefit from diversification in their product mix and geographic footprint and can still increase their casualty insurance rates.”
- “Insurers will face slowing revenue growth given the easing rate environment amid macroeconomic uncertainty,” Fitch says.
- In property-catastrophe reinsurance, softening market conditions will “continue at the midyear 2026 renewals in April (Asia-focused) and June/July (Florida).”
InsurTech/M&A/Finance💰/Collaboration
Beazley Agrees to Zurich’s Sweetened £8 Billion Takeover Bid
Zurich Insurance Group AG has made a sweetened £8 billion ($11 billion) bid to buy Beazley Plc, an offer that’s won the tentative approval of the UK insurer’s board.
The Swiss insurance giant’s revised cash proposal of 1,310 pence a share, up from 1,280 pence last month, has been agreed “in-principle” according to a statement Wednesday. With Beazley expected to pay its shareholders a permitted dividend of as much as 25 pence for the year ended Dec. 31, the total value would be 1,335 pence, or £8 billion, according to the statement.
Beazley’s board said it was minded to recommend the revised bid to shareholders but it isn’t yet clear if or when any deal would close.
The offer price, excluding the dividend, represents a premium of almost 60% to Beazley’s closing share price before the approach became public on Jan. 19, it said. It also represents just over 2.5 times Beazley’s book value, based on its June earnings.
The shares of the British firm jumped as much as 9% in early London trading on Wednesday. They have rallied 54% since Jan. 19 when the approach was made public for the first time, and were trading below the offer price at 1,261 pence as of 8:53 a.m. in London.
Private Equity Finds a New Escape Valve: Insurance
Once a niche tool for smoothing M&A negotiations, transaction insurance has become a critical liquidity lever for PE firms.
Insurance, once a side-show in M&A, is fast becoming one of private equity’s main tools for prying loose liquidity by unlocking cash trapped in escrows, clawback provisions and contingent exposures.
PE’s prolonged liquidity squeeze has already turned secondaries, NAV lending and other formerly esoteric tools into mainstream distribution strategies.
Insurance has now quietly become embedded in that ecosystem.
“Ten years ago, less than 20 percent of private transactions were insured,” said Matthew Wiener, co-leader of Aon’s transaction solutions practice which was launched in October. “Today, we estimate that 50 percent to 70 percent of all U.S. private transactions use some form of insurance.”
Aon is not alone in expanding its insurance offerings. What began as representations and warranties insurance to protect buyers from undisclosed liabilities has evolved into a broader set of policies underwriting contingent risks, litigation exposures and deferred tax liabilities across private-equity portfolios.
Marsh and Willis Towers Watson now routinely place policies, not only on traditional buyouts and carve-outs, but also on minority investments, take-privates and GP-led continuation vehicles.
Major insurers including AIG, Liberty Mutual, Zurich, Chubb and QBE, alongside specialty carriers such as Euclid, Mosaic, VALE and Themis, have expanded underwriting capacity sharply since 2020.
That influx of capital has lowered costs and broadened coverage. Policies typically cover between 10 and 20 percent of enterprise value with and deals as small as $10 million can now be insured alongside $20 billion transactions. Sector restrictions that once limited adoption, including healthcare and energy, have largely faded.
Brokers and advisers say that as private markets have grown more complex, the economic role of insurance has shifted from a cost of doing a deal to an enabler of deals that might otherwise not clear.
“Inevitably, things come up that the parties didn’t know about,” Wiener says, “Historically, you would ask the seller to take some portion of their proceeds and place them in escrow to satisfy these issues that could come up post-closing. And as you can expect, that’s a highly contentious negotiating issue.”
AI in Insurance
One Inc Links Corporate AI Assistants With Insurance Payments
Digital payments network One Inc launched a new protocol designed to accelerate the integration of its payment systems and improve data management through artificial intelligence.
The company’s new Model Context Protocol (MCP) is an open system that allows insurance carriers to use their existing corporate AI assistants to interact more efficiently with One Inc’s platform, according to a Tuesday (Feb. 3) press release.
The protocol is compatible with various AI assistants, including Microsoft Copilot, ChatGPT Enterprise and Anthropic’s Claude. MCP is intended to speed up integration timelines and elevate service standards for its insurance clients, the release said.
A key differentiator of MCP is its deployment model. Unlike traditional AI features that are often limited to vendor-hosted environments, One Inc’s protocol operates within a client’s own IT-approved AI environment. This allows carriers to securely combine One Inc’s payments data with their internal systems and proprietary models, providing greater operational flexibility and more comprehensive data analysis, according to the release.
The company expects the protocol to enhance its flagship solutions, PremiumPay and ClaimsPay, by reducing “go-live” times for insurers, the release said. These AI-driven capabilities are designed to help carriers modernize premium collections and claims disbursements, leading to higher digital adoption, lower exception rates and strengthened fraud controls.
Understanding AI in insurance for investors | McKinsey
The insurance ecosystem is ripe for technological disruption. For private investors, the spread of AI will create uneven opportunities across subsectors. The insurance industry represents a significant opportunity for AI to drive value creation, and the technology will continue making inroads across the industry in the months and years ahead. The opportunity for advancement in the sector is significant, with workflow inefficiencies and extensive use and ownership of data creating a meaningful entry point for the latest technologies.
About the authors What are the potential implications for private investors? In this article, we take a closer look at insurance subsectors that are already the focus of considerable private capital investment, including distributors, managing general agents (MGAs), software providers, and third-party administrators (TPAs), to assess how and where AI could make a difference. We conclude with four priorities for sponsors and other investors seeking to turn AI into an eventual portfolio differentiator.
Announcements
Sproutr Launches End-to-End Program Placement Services, Eliminating Critical Handoff Between Design and Carrier Negotiations
Sproutr, a leading insurance program design and product development firm, today announced the launch of Program Placement Services, expanding its capabilities to include complete carrier placement, contract navigation, and go-to-market facilitation.
This strategic enhancement enables Sproutr to guide insurance programs through the entire lifecycle, from initial underwriting design to final carrier placement and market launch, with a single, unified team.
The new service addresses a longstanding challenge in the insurance program development industry: the costly and inefficient handoff between program design and program placement. When different parties handle design and carrier placement, critical context is often lost, resulting in carrier pushback, program redesigns, launch delays, and diminished market confidence.
"We've had too many MGAs and MGUs approach us because they've lost momentum at the placement stage," said JoAnne Artesani, Founder & CEO at Sproutr. "Carriers raise concerns that could have been addressed during the design phase, forcing costly revisions and pushing back launch timelines. By having the same architects who design the program also identify, introduce, and negotiate the activities required for a successful placement with carriers, we eliminate that gap entirely."
Commentary/Opinion
Modern Underwriting Technology Requires More Than New Systems
The case for modern underwriting technology
Modernizing front-line underwriting technology for commercial insurance carriers is no longer discretionary. It has become a strategic necessity in an ever-changing marketplace where agility and adaptability are essential to respond to shifting risks and customer expectations.
The task can be gargantuan, and the costs daunting. Modernization requires disciplined resource allocation and prioritization to avoid overruns and organizational fatigue. Many carriers have grown through mergers and acquisitions and now operate a fragmented web of legacy systems. That fragmentation often leads to inconsistent processes, siloed underwriting practices, and an erosion of underwriting discipline.
Modern underwriting platforms can address these challenges by delivering better reporting capabilities, improved security and stability, deeper underwriting insights, and the agility needed for iterative delivery and rapid course correction in a fast-moving market.
New policy administration systems support faster submission lifecycle movement. Modern rating and pricing tools allow rapid updates to models and finer control over the book. Meanwhile, the rapidly growing underwriting workbench market is delivering tools that improve underwriting outcomes and decision-making. Underwriters benefit from better workflows and insight, while carriers gain improved portfolio mix control, reduced premium leakage, stronger loss ratios, and more streamlined processes.
Large-scale change, however, is rarely easy. It is often met with resistance from front-line teams—particularly if new systems are perceived as limiting flexibility or failing to meet real underwriting needs.
Scott Anton is Associate Director, Commercial Lines Underwriting, North America, Insurance Consulting and Technology, WTW
People
Venbrook Group Names Awais Farooq Chief Claims Officer
Venbrook Group LLC ("Venbrook"), one of the fastest growing independently owned insurance brokerage, claims, and risk management consulting companies in the U.S., today announced the appointment of Awais Farooq as its new Chief Claims Officer (CCO), effective immediately. Farooq will oversee Venbrook's global claims operations, a pivotal role within the company to drive strategy and enhance service across the division.
Farooq brings nearly two decades of experience driving large-scale change across global claims organizations, having most recently served as Senior Vice President of Strategy & Transformation at Crawford & Company. Prior to that, he held senior leadership roles at State Farm, Chubb, and Berkshire Hathaway GUARD. Throughout his career, Farooq has focused on modernizing claims operations, strengthening talent, and delivering exceptional customer outcomes.
"We are thrilled to welcome Awais to this critical leadership position," said Jason Turner, Founder and CEO of Venbrook Group. "His proven track record of delivering superior claims outcomes aligns with our commitment to provide our clients with bespoke solutions and a modernized claims process. We are happy to have him on the team."
"I am excited to join Venbrook and help usher in a new level of service in the company's claims division," said Farooq. "Together, we will focus on leveraging data and technology to enhance our services, provide customer advocacy, and deliver exceptional outcomes."
Canada
Deloitte Canada sees a major shift ahead as ‘set and forget’ insurance comes to an end
Melissa Carruthers explains how always-on advice, data, and ecosystem partnerships will reshape Canadian insurers’ operating models
As Canadian insurers race to modernize, one of the biggest shifts ahead won’t be a new product or a new policy form – it will be how often, and in what ways, they show up in customers’ lives, according to Melissa Carruthers (pictured), global life and health insurance leader at Deloitte Canada.
In recent research, Carruthers and her team identified five “megashifts” they believe will define the next decade of insurance. Two of them, she said, are the move to “always‑on, data‑driven advice” and the rise of ecosystem partnerships that pull insurers into everyday health, wealth and risk decisions.
Always‑on advice: what it looks like for Canadians
For most policyholders, insurance has long been a “set and forget” relationship: buy a policy, hear from your carrier at renewal, and call only if something goes wrong.
“Insurers have traditionally engaged customers in a reactive, transactional way – often only at key moments like purchase, renewal, or claims,” Carruthers told Insurance Business. “Always‑on, data‑driven advice represents a shift toward continuous, proactive, and highly personalised engagement.”
In practice, that means using permissioned data – not surveillance – to anticipate needs and offer timely, simple actions rather than waiting for the client to pick up the phone.
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