Allstate Adds $216 Million To Old Asbestos And Mass-Tort Reserves While Releasing $802 Million On Auto Injury Claims
The insurer's annual review of run-off claims lifted reserves in the third quarter, against $146 million a year earlier.
Allstate, which sells auto and homeowners insurance to consumers, raised reserves for old asbestos, environmental and other mass-tort claims by $216 million in its annual third-quarter review, according to its 10-Q filed Wednesday. The same quarter, it released $802 million of reserves on auto injury coverages.
Two reserve moves, opposite directions
The run-off charge compares with $146 million in the third quarter of 2025, the filing shows. Allstate reassesses these reserves once a year, in the third quarter, applying industry and actuarial standards.
On the auto side, third-quarter releases also included $74 million on other auto reserves. For the first nine months of 2026, auto releases came to $2.07 billion on injury coverages and $279 million on other auto reserves.
The prior quarter's filing carried $597 million of injury releases and $42 million of other auto releases for the second quarter. The run-off segment's underwriting loss was $218 million in the third quarter, from $146 million a year earlier.
More of the run-off reserve rests on estimates
Run-off gross reserves rose to $2.03 billion at September 30 from $1.78 billion at June 30, and the filing ties the 2026 increase to higher claim frequency and severity for asbestos and to emerging environmental and other mass-tort claims.
The share of run-off net reserves that is IBNR, meaning losses not yet reported and so estimated, reached $855 million, or 54%, from $653 million, or 47%, at June 30. Of the run-off gross case reserves in the direct excess commercial book, 57% are subject to settlement agreements limiting Allstate's obligations, down from 66% at December 31.
In the filing's telling, these reserves rest on events long past, with little historical data and unresolved legal questions, so reported losses may swing as courts and arbitrations settle disputed claims.
Where it sits in the quarter
Allstate reported third-quarter net income applicable to common shareholders of $2.05 billion, or $8.03 per diluted share, against $3.7 billion a year earlier; revenue was $17.3 billion. Its market value was $66.1 billion at the time of the report.
The company's earnings call is at 9 a.m. ET on Thursday.
Thursday's call is the first chance to hear management explain the run-off charge and the pace of auto releases.
Sources
- 10-Q Filing — Allstate (ALL) — SEC EDGAR
- 10-Q Filing — Allstate (ALL), Q2 FY2026 filed 2026-08-05 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, allcorp93026earningsreleas.htm) — Allstate, filed 2026-11-04 — SEC EDGAR
- Will Property-Liability Underwriting Woes Hurt Allstate's Q3 Results? — Yahoo Finance
- Allstate to hold Q3 2026 earnings call Nov. 5, 2026 – Company Announcement - FT.com — Financial Times
- Allstate Q3 earnings match consensus and revenue misses as it ramps up its LLM (ALL:NYSE) | Seeking Alpha — seekingalpha.com
- Allstate: Q3 Earnings Snapshot — Associated Press
- Allstate (ALL) Takes Full Ownership Of A Mobility Data Company — Yahoo Finance
