Fitch Ratings upgrades Allstate's financial strength rating to A — plus

By Navneeta Nandan Oct 16 (The Insurer) — Fitch Ratings has upgraded the insurer financial strength (IFS) ratings for The Allstate Corporation's core P&C subsidiaries to A-plus from A, reflecting an improved assessment of capitalization and sustained strong underwriting performance, the rating agency announced on Thursday. It also upgraded the holding company ratings, including issuer default rating (IDR) to A-minus from BBB-plus and senior unsecured debt ratings to BBB-plus from BBB. The outlook for all the ratings is stable.

Fitch Ratings said Allstate's favorable company profile and leading personal-lines market positions provide additional ratings support, while above-industry average risky asset exposure remains a rating constraint. The ratings upgrade was driven by favorable company profile as the fourth-largest US private-passenger auto insurer and second-largest homeowners' insurer, based on 2025 premiums. Its combined ratio improved in 2025, indicating stronger underwriting margins and greater favorable reserve development, and recovery extended beyond reserve releases.

The rating agency also said that strong earnings have helped rebuild the insurer's capital cushion against underwriting and investment risks, expecting it to remain close to current levels over the near term. Fitch also said that it expects underwriting profitability to remain strong as Allstate pursues growth through expanded distribution and more affordable products. AM Best in September affirmed its A-plus financial strength rating and aa-minus long-term issuer credit rating on Allstate, with stable outlooks.

"Allstate has a favorable market position in the private passenger auto and homeowners' markets with its extensive reach and distribution capabilities that historically have contributed to sustained profitability and robust cash flow," AM Best said last month.