Adjusted net income return on equity was 28.6% over the trailing 12 months.
Auto insurance combined ratio was 86%, a 9.9 point improvement from the second quarter of 2024.
Divestitures of Employee Voluntary Benefits and Group Health businesses generated $3.25 billion, representing a 25 times multiple of latest 12-month earnings.
Homeowners business had an underlying combined ratio of 58.6 but was offset by $1.6 billion in catastrophe losses, leading to a combined ratio of 102 in the quarter.
Investment income was $754 million in the quarter, representing a total return of 1.4% for the quarter and 5.4% for the last 12 months.
Net income was $2.1 billion and adjusted net income was $1.6 billion or $5.94 per diluted share.
Personal property-liability policies in force increased by 0.8 points.
Property-Liability business generated nearly $1.3 billion of underwriting income with a combined ratio of 91.1%, a 10-point improvement from prior year quarter.
Protection Services revenues were $867 million in the quarter, generating $60 million of income.
Returned $1.1 billion in dividends and repurchased $445 million of common stock in the past year.
Revenues were $16.6 billion in the second quarter, a 5.8% increase compared to the second quarter of 2024.
Total policies in force increased by 4.2% over the prior year, led by Allstate Protection Plans.
Adjusted EBITDA margin expanded by 70 basis points relative to Q2 2024, reaching 54.2% for the quarter and increasing 83 basis points compared to 2024 full year margins.
Adjusted expenses increased 24% on a reported basis, driven by investments in digital assets, consulting, client relationship development, and headcount growth.
Credit revenues grew strongly, led by global corporate bonds, munis, and credit derivatives, despite some retail corporate credit revenues declining 17% year-over-year.
Equities posted record results with 50% year-over-year growth, led by global ETF and equity derivatives businesses.
Free cash flow reached approximately $952 million for the trailing 12 months, with $1.6 billion in cash and cash equivalents at quarter-end.
International business revenues grew 41% year-over-year, driven by strategic initiatives in emerging markets and APAC.
Market data revenues increased due to growth in proprietary data products.
Q2 revenues grew 26.7% year-over-year on a reported basis and 24.7% on a constant currency basis.
Rates business produced record revenues driven by organic growth across swaps, global government bonds, and mortgages.
The Board declared a quarterly dividend of $0.12 per share, up 20% year-over-year.
Tradeweb set a new quarterly revenue record in Q2 2025, surpassing the Q1 2025 record, with revenues exceeding $1 billion in the first half of the year.
Variable revenue increased by 30%, total trading revenues increased by 28%, and fixed revenues related to four major asset classes increased 25% on a reported basis.
Impact and Progress of Accounting Methodology Restatement
The company is undergoing a restatement related to new accounting methodology recognizing certain relationships in the Credit Solutions business within held-for-investment loan balances on a gross basis.
The process involves revisiting 13 quarters of financial data, with the majority of the work now in later stages.
Preliminary results include an 8-quarter view with new balances and income statements, providing management's comfort level.
The restatement is expected to negatively impact net income in fiscal 2022 and 2023, with an inflection point in 2024 leading to higher net income.
Management indicated that the restatement process has been a significant but manageable distraction, with most of the work behind them.
Dafinchi