What changed in this filing

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Item 1. Financial Statements

2025-04-30 compared with 2024-10-30 · 489 added, 596 removed, 1241 unchanged (47% of the section changed)

3 unchanged sentences

(In millions, except per share data) Three months ended

September 30, Nine months ended September 30,

2024 2023 2024 2023

Property and casualty insurance premiums $ 14,698 $ 13,512

6 unchanged sentences

Property and casualty insurance claims and claims expense 10,815 9,501

Accident, health and other policy benefits (including remeasurement (gains) losses of $ 1 , $ 0 , $ 1 and $ 0 )

317 262 904 785

Accident, health and other policy benefits

Amortization of deferred policy acquisition costs 2,087 1,939

5 unchanged sentences

Total costs and expenses 15,733 13,795

Income (loss) from operations before income tax expense 1,418 ( 21 ) 3,312 ( 2,175 )

Income tax expense (benefit) 254 ( 17 ) 603 ( 475 )

Net income (loss) 1,164 ( 4 ) 2,709 ( 1,700 )

Net (loss) income attributable to noncontrolling interest ( 26 ) 1 ( 30 ) ( 23 )

Net income (loss) attributable to Allstate 1,190 ( 5 ) 2,739 ( 1,677 )

Income from operations before income tax expense 719 1,464

Income tax expense 123 266

Net income 596 1,198

Net income (loss) attributable to noncontrolling interest 1 ( 20 )

Net income attributable to Allstate 595 1,218

Preferred stock dividends 29 29

Net income (loss) applicable to common shareholders $ 1,161 $ ( 41 ) $ 2,651 $ ( 1,776 )

Net income applicable to common shareholders $ 566 $ 1,189

Earnings per common share:

Net income (loss) applicable to common shareholders per common share - Basic $ 4.39 $ ( 0.16 ) $ 10.04 $ ( 6.76 )

Net income applicable to common shareholders per common share - Basic $ 2.13 $ 4.51

Weighted average common shares - Basic 265.3 263.5

Net income (loss) applicable to common shareholders per common share - Diluted $ 4.33 $ ( 0.16 ) $ 9.91 $ ( 6.76 )

Net income applicable to common shareholders per common share - Diluted $ 2.11 $ 4.46

Weighted average common shares - Diluted 268.8 266.5

See notes to condensed consolidated financial statements.

Third Quarter 2024 Form 10-Q 1

First Quarter 2025 Form 10-Q 1

Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

Net income (loss) $ 1,164 $ ( 4 ) $ 2,709 $ ( 1,700 )

($ in millions) Three months ended March 31,

Net income $ 596 $ 1,198

Other comprehensive income (loss), after-tax

3 unchanged sentences

Discount rate for reserve for future policy benefits

( 36 ) 30 ( 12 ) 29

Other comprehensive income (loss), after-tax 380 ( 183 )

Comprehensive income (loss) 2,441 ( 660 ) 3,660 ( 1,878 )

Comprehensive loss attributable to noncontrolling interest ( 19 ) ( 1 ) ( 22 ) ( 21 )

Comprehensive income (loss) attributable to Allstate $ 2,460 $ ( 659 ) $ 3,682 $ ( 1,857 )

Comprehensive income 976 1,015

Comprehensive income (loss) attributable to noncontrolling interest 5 ( 19 )

Comprehensive income attributable to Allstate $ 971 $ 1,034

See notes to condensed consolidated financial statements.

3 unchanged sentences

Condensed Consolidated Statements of Financial Position (unaudited)

($ in millions, except par value data) September 30, 2024 December 31, 2023

($ in millions, except par value data) March 31, 2025 December 31, 2024

Fixed income securities, at fair value (amortized cost, net $ 52,340 and $ 53,616 )

18 unchanged sentences

Reserve for future policy benefits 86 269

Contractholder funds — 888

Unearned premiums 27,167 26,909

Claim payments outstanding 1,659 1,567

Deferred income taxes 211 —

Other liabilities and accrued expenses 9,901 9,390

4 unchanged sentences

Preferred stock and additional capital paid-in, $ 1 par value, 25 million shares authorized, 82.0 thousand shares issued and outstanding, $ 2,050 aggregate liquidation preference

Common stock, $ .01 par value, 2.0 billion shares authorized and 900 million issued, 265 million and 262 million shares outstanding

Common stock, $ .01 par value, 2.0 billion shares authorized and 900 million issued, 265 million shares outstanding

Additional capital paid-in 4,048 4,029

Retained income 53,586 53,288

Treasury stock, at cost ( 635 million and 638 million shares)

Treasury stock, at cost ( 635 million shares)

( 37,080 ) ( 36,996 )

4 unchanged sentences

Discount rate for reserve for future policy benefits

( 23 ) ( 11 )

Total accumulated other comprehensive income (loss) 251 ( 700 )

Total accumulated other comprehensive loss ( 509 ) ( 889 )

Total Allstate shareholders’ equity 22,055 21,442

3 unchanged sentences

See notes to condensed consolidated financial statements.

Third Quarter 2024 Form 10-Q 3

First Quarter 2025 Form 10-Q 3

Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)

($ in millions, except per share data) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions, except per share data) Three months ended March 31,

Preferred stock par value $ — $ —

Preferred stock additional capital paid-in 2,001 2,001

Balance, beginning of period 2,001 2,001 2,001 1,970

Preferred stock issuance, net of issuance costs — — — 587

Preferred stock redemption — — — ( 556 )

Balance, end of period 2,001 2,001 2,001 2,001

Common stock par value 9 9

5 unchanged sentences

Balance, beginning of period 53,288 49,716

Net income (loss) 1,190 ( 5 ) 2,739 ( 1,677 )

Net income 595 1,218

Dividends on common stock (declared per share of $ 1.00 and $ 0.92 )

13 unchanged sentences

Change in discount rate for reserve for future policy benefits

( 36 ) 30 ( 12 ) 29

Balance, end of period ( 509 ) ( 883 )

3 unchanged sentences

Change in unrealized net capital gains and losses 4 1

Noncontrolling (loss) income ( 26 ) 1 ( 30 ) ( 23 )

Capital transaction for noncontrolling interest

Noncontrolling income (loss) 1 ( 20 )

Capital transactions for noncontrolling interest

Balance, end of period ( 3 ) ( 159 )

5 unchanged sentences

Condensed Consolidated Statements of Cash Flows (unaudited)

($ in millions) Nine months ended September 30,

($ in millions) Three months ended March 31,

Cash flows from operating activities

Net income (loss) $ 2,709 $ ( 1,700 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities

Net income $ 596 $ 1,198

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and other non-cash items 132 132

30 unchanged sentences

Cash flows from financing activities

Proceeds from issuance of debt 495 743

Redemption and repayment of debt

( 350 ) ( 750 )

Proceeds from issuance of preferred stock — 587

Redemption of preferred stock — ( 575 )

Contractholder fund deposits 30 34

4 unchanged sentences

Shares reissued under equity incentive plans, net 15 80

Other 8 ( 10 )

Net cash used in financing activities ( 334 ) ( 166 )

4 unchanged sentences

See notes to condensed consolidated financial statements.

Third Quarter 2024 Form 10-Q 5

First Quarter 2025 Form 10-Q 5

Notes to Condensed Consolidated Financial Statements

5 unchanged sentences

These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The condensed consolidated financial statements and notes as of September 30, 2024 and for the three and nine month periods ended September 30, 2024 and 2023 are unaudited.

The condensed consolidated financial statements and notes as of March 31, 2025 and for the three month periods ended March 31, 2025 and 2024 are unaudited.

The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods.

Certain amounts have been reclassified to conform to current year presentation.

These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2024.

1 unchanged sentence

All significant intercompany accounts and transactions have been eliminated.

Held for sale classification

A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value and certain other criteria are met.

A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell.

When the proceeds expected to be received from the sale exceed the carrying amount of the business, a gain is recognized when the sale closes.

Assets and liabilities related to a business classified as held for sale are segregated in the condensed consolidated statement of position in the period in which the business is classified as held for sale.

Additional details are included in Note 3.

Adopted accounting standard

Accounting for joint ventures Effective January 1, 2025, the Company adopted the new Financial Accounting Standards Board (“FASB”) guidance requiring a joint venture to initially measure assets contributed and liabilities assumed at fair value as of the formation date.

The adoption had no impact on the Company’s Condensed Consolidated Statements of

Operations and Condensed Consolidated Statements of Financial Position.

Pending accounting standards

Accounting for joint ventures In August 2023, the Financial Accounting Standards Board (“FASB”) issued guidance requiring a joint venture to initially measure assets contributed and liabilities assumed at fair value as of the formation date.

The new guidance will be applied prospectively for joint ventures with a formation date on or after January 1, 2025.

The impact of the adoption is not expected to be material to the Company’s results of operations or financial position.

Segment reporting In November 2023, the FASB issued guidance expanding segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of reportable segments’ profit or loss and assets.

The guidance is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024 and is to be applied retrospectively, with early adoption permitted.

The guidance affects disclosures only.

Income tax disclosures In December 2023, the FASB issued guidance enhancing various aspects of income tax disclosures.

1 unchanged sentence

For certain required categories where an individual category is at least five percent of the statutory tax amount, the required category must be further broken out by nature and, for foreign tax effects, jurisdiction.

Additionally, entities must disclose income taxes paid, net of refunds received, broken out between federal, state and foreign, and amounts paid, net of refunds received, to an individual jurisdiction when five percent or more of the total income taxes paid, net of refunds received.

Additionally, entities must disclose income taxes paid, net of refunds received, broken out between federal, state and foreign, and amounts paid, net of refunds received, to an individual jurisdiction when it is five percent or more of the total income taxes paid, net of refunds received.

All requirements in the guidance are annual in nature, and the guidance is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted.

The guidance affects disclosures only.

Climate disclosures In March 2024, the Securities and Exchange Commission (“SEC”) adopted a final rule requiring registrants to disclose certain climate-related information in their registration statements and annual reports.

The rule requires the disclosure of qualitative and quantitative information, with certain information, such as financial statement effects of severe weather events, included in the notes to the audited financial statements.

Other disclosure requirements include material climate-related risks, processes to manage and govern those risks, disclosure of targets if the targets materially affect or are reasonably likely to

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Notes to Condensed Consolidated Financial Statements

materially affect the Company, and, if material, disclosure of certain greenhouse gas emissions.

On April 4, 2024, the SEC issued a voluntary stay of the final rule, pending the outcome of pending litigation.

The requirements will be applied prospectively and have phased-in effective dates.

For the Company, the

Form 10-K for the year ended December 31, 2025, will be the first annual report with new climate-related disclosures.

The Company is currently evaluating the impact of adopting the final rule.

Disaggregated income statement disclosures In November 2024, the FASB issued guidance requiring disaggregated information about specific expense categories included in certain income statement expense line items and disclosures about selling expenses.

The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

The standard is effective on a prospective basis, with the option for retrospective application.

The guidance affects disclosures only.

Note 2 Earnings per Common Share

3 unchanged sentences

non-participating restricted stock units and contingently issuable performance stock awards.

The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect.

The effect of dilutive potential common shares does not include options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect.

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Notes to Condensed Consolidated Financial Statements

Computation of basic and diluted earnings per common share

(In millions, except per share data) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

Net income (loss) $ 1,164 $ ( 4 ) $ 2,709 $ ( 1,700 )

Net (loss) income attributable to noncontrolling interest ( 26 ) 1 ( 30 ) ( 23 )

Net income (loss) attributable to Allstate 1,190 ( 5 ) 2,739 ( 1,677 )

(In millions, except per share data) Three months ended March 31,

Net income $ 596 $ 1,198

Net income (loss) attributable to noncontrolling interest 1 ( 20 )

Net income attributable to Allstate 595 1,218

Preferred stock dividends

Net income (loss) applicable to common shareholders $ 1,161 $ ( 41 ) $ 2,651 $ ( 1,776 )

Net income applicable to common shareholders $ 566 $ 1,189

Weighted average common shares outstanding

264.6 261.8 264.1 262.6

Effect of dilutive potential common shares:

2 unchanged sentences

Weighted average common and dilutive potential common shares outstanding

268.0 261.8 267.4 262.6

Earnings per common share - Basic $ 2.13 $ 4.51

2 unchanged sentences

Anti-dilutive options excluded from diluted earnings per common share 0.2 0.7

0.6 3.1 0.5 3.0

Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1)

(1) As a result of the net loss reported for the three and nine month periods ended September 30, 2023, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation.

Note 3 Disposition

On August 13, 2024, the Company entered into a share purchase agreement (the “Purchase Agreement”) with StanCorp Financial Group, Inc.

Note 3 Dispositions

Employer voluntary benefits (“EVB”) business disposition On August 13, 2024, the Company entered into a share purchase agreement (the “Purchase Agreement”) with StanCorp Financial Group, Inc.

to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business for approximately $ 2.0 billion in cash.

The employer voluntary benefits business is reported in the Allstate Health and Benefits segment, and as of September 30, 2024, the assets and liabilities of the business are classified as held for sale.

The transaction price less costs to sell exceeds the carrying value of the net assets related to this transaction, resulting in an

estimated gain that will be recognized at closing of the transaction.

The EVB business is reported in the Health and Benefits segment, and the assets and liabilities of the business are classified as held for sale.

The transaction closed on April 1, 2025, and the Company expects to record a gain on the sale in the second quarter of 2025.

The EVB business generated $ 243 million of premiums and contract charges and $ 22 million of adjusted net income for the three months ended March 31, 2025.

Group health business disposition On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution,

LLC, comprising the group health business for approximately $ 1.25 billion in cash.

The group health business is reported in the Health and Benefits segment, and beginning in the first quarter of 2025, the assets and liabilities of the business are classified as held for sale.

The transaction is expected to close in 2025, subject to regulatory approvals and other customary closing conditions.

The transaction price less costs to sell exceeds the carrying value of net assets related to the transaction, resulting in an expected gain that will be recognized at closing of the transaction.

The anticipated gain on the sale will be impacted by purchase price adjustments associated with certain pre-close transactions, changes in the carrying value of net assets, changes in accumulated other comprehensive income and the related tax effects.

The amount of goodwill included in the carrying value is based on the relative fair value of the employer voluntary benefits business to the fair value of the Allstate Health and Benefits segment and is reported in other assets in the table below.

Third Quarter 2024 Form 10-Q 7

The group health business generated $ 124 million of premiums and contract charges and adjusted net income of $ 12 million for the three months ended March 31, 2025.

First Quarter 2025 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.

The Company continues to pursue the sale of the group health and individual health businesses.

The employer voluntary benefits business generated $ 248 million and $ 742 million of premiums and contract charges for the three and nine months ended September 30, 2024, respectively, and adjusted net income of $ 19 million and $ 64 million for the three and nine months ended September 30, 2024, respectively.

Major classes of assets and liabilities classified as held for sale (1)

($ in millions) September 30, 2024

Fixed income securities, at fair value (amortized cost, net $ 1,691 )

Equity securities, at fair value (cost $ 1 )

Short-term, at fair value (amortized cost $ 76 )

March 31, 2025 December 31, 2024

($ in millions)

Fixed income securities, at fair value (amortized cost, net $ 1,764 , $ 208 , $ 1,972 and $ 1,809 )

$ 1,676 $ 205 $ 1,881 $ 1,699

Short-term, at fair value (amortized cost $ 64 , $ 13 , $ 77 and $ 85 )

Other investments, net

116 — 116 122

Total investments 1,856 218 2,074 1,906

Cash 44 157 201 —

Deferred policy acquisitions costs 525 1 526 521

6 unchanged sentences

Total liabilities held for sale $ 2,116 $ 259 $ 2,375 $ 2,113

Included in shareholders' equity is $ 65 million of accumulated other comprehensive loss related to assets and liabilities held for sale.

(1) Assets and liabilities of the EVB business were classified as held for sale as of December 31, 2024 and March 31, 2025.

Assets and liabilities of the group health business were classified as held for sale as of March 31, 2025.

Included in shareholders' equity is $ 54 million and $ 72 million of accumulated other comprehensive loss related to assets and liabilities held for sale as of March 31, 2025 and December 31, 2024.

Note 4 Reportable Segments

4 unchanged sentences

Management reviews assets at the Property-Liability, Protection Services, Allstate Health and Benefits, and Corporate and Other levels for decision-making purposes.

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses, amortization of deferred policy acquisition costs (“DAC”), operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP.

Adjusted net income is net income (loss) applicable to common shareholders, excluding:

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses, amortization of deferred policy acquisition costs (“DAC”), operating costs and expenses,

amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP.

Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding:

• Net gains and losses on investments and derivatives

8 unchanged sentences

Reportable segments financial performance

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

2 unchanged sentences

Run-off Property-Liability

( 60 ) ( 83 ) ( 68 ) ( 88 )

Total Property-Liability 360 898

2 unchanged sentences

Allstate Health and Benefits

37 69 151 182

Corporate and Other ( 97 ) ( 106 )

1 unchanged sentence

Allstate Protection and Run-off Property-Liability net investment income

708 627 2,053 1,680

Net gains (losses) on investments and derivatives ( 349 ) ( 164 )

3 unchanged sentences

Gain (loss) on disposition — 4

Non-recurring costs (2)

Income tax (expense) benefit on Property-Liability and reconciling items (2)

1 unchanged sentence

Total reconciling items 219 267

Net (loss) income attributable to noncontrolling interest (4)

( 25 ) 2 ( 29 ) ( 22 )

Net income (loss) applicable to common shareholders $ 1,161 $ ( 41 ) $ 2,651 $ ( 1,776 )

Net income (loss) attributable to noncontrolling interest (3)

Net income applicable to common shareholders $ 566 $ 1,189

(1) Excludes amortization of purchased intangibles in Allstate Protection, which is already included above in underwriting income.

(2) Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business.

(2) The tax computation of the reporting segments and income tax benefit (expense) on reconciling items to net income (loss) are computed discretely based on the tax law of the jurisdictions applicable to the reporting entities.

(4) Reflects net (loss) income attributable to noncontrolling interest in Property-Liability.

Third Quarter 2024 Form 10-Q 9

(3) Reflects net income (loss) attributable to noncontrolling interest in Property-Liability.

First Quarter 2025 Form 10-Q 9

Notes to Condensed Consolidated Financial Statements

Reportable segments revenue information

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Property-Liability

8 unchanged sentences

Total Property-Liability insurance premiums

14,027 12,900

Other revenue 488 430

6 unchanged sentences

Protection and insurance products

125 126 377 382

Intersegment premiums and service fees (1)

49 34 123 102

Other revenue 128 85

10 unchanged sentences

Total Allstate Health and Benefits

630 585 1,887 1,746

Corporate and Other

9 unchanged sentences

Notes to Condensed Consolidated Financial Statements

Reportable segments expense information used in measure for segment profit or loss

Three months ended March 31,

($ in millions) 2025 2024

Property-Liability

Claims and claims expense excluding catastrophe losses and prior year reserve reestimates (1)

$ 8,693 $ 8,607

Catastrophe losses 2,202 731

Non-catastrophe prior year reserve reestimates ( 238 ) 7

Amortization of DAC 1,732 1,608

Advertising expense 523 283

Amortization of purchased intangibles 46 51

Restructuring and related charges 16 7

Other segment expenses (2)

Allstate Protection

14,151 12,427

Claims and claims expense (1)

Other segment expenses (2)

Run-off Property Liability 4 5

Total Property-Liability

14,155 12,432

Protection Services

Claims and claims expense

Amortization of DAC 318 289

Restructuring and related charges — 1

Other segment expenses (2)

Income taxes on operations

Total 805 699

Allstate Health and Benefits

Accident, health and other policy benefits

Amortization of DAC 37 42

Restructuring and related charges — 1

Other segment expenses (2)

Income taxes on operations

Total 613 579

Corporate and Other

Interest expense 100 97

Restructuring and related charges — 1

Other segment expenses (2)

Income taxes on operations

( 27 ) ( 25 )

Preferred stock dividends

Total $ 134 $ 144

(1) Includes Property-Liability incurred loss adjustment expenses, net of reinsurance of $ 734 million and $ 696 million for the three months ended 2025 and 2024, respectively.

(2) Includes employee-related costs, professional services, technology and certain other operating costs and expenses, including expenses from strategic initiatives.

First Quarter 2025 Form 10-Q 11

Notes to Condensed Consolidated Financial Statements

Additional significant financial performance data

Three months ended March 31,

($ in millions) 2025 2024

Amortization of DAC

Property-Liability $ 1,732 $ 1,608

Protection Services 318 289

Allstate Health and Benefits 37 42

Consolidated $ 2,087 $ 1,939

Amortization of purchased intangibles

Property-Liability $ 46 $ 51

Protection Services 9 11

Allstate Health and Benefits 4 7

Consolidated $ 59 $ 69

Income tax expense (benefit)

Property-Liability $ 148 $ 263

Protection Services 13 13

Allstate Health and Benefits 8 14

Corporate and Other ( 46 ) ( 24 )

Consolidated $ 123 $ 266

Capital expenditures for long-lived assets are generally made at the Property-Liability level as the Company does not allocate assets to the Allstate Protection and Run-off Property-Liability segments.

A portion of these long-lived assets are used by entities included in the Protection Services, Allstate Health and Benefits and Corporate and Other segments and, accordingly, are charged to these segments in proportion to their use.

Reportable segment total assets, investments and deferred policy acquisition costs

($ in millions) March 31, 2025 December 31, 2024

Property-Liability $ 100,875 $ 96,988

Protection Services 7,593 7,540

Allstate Health and Benefits

Corporate and Other 2,374 2,727

Consolidated $ 115,161 $ 111,617

Investments (1)

Property-Liability $ 69,573 $ 67,671

Protection Services 2,334 2,228

Allstate Health and Benefits (2)

Corporate and Other 1,956 2,332

Consolidated $ 74,050 $ 72,610

Deferred policy acquisition costs

Property-Liability $ 2,565 $ 2,548

Protection Services 3,152 3,161

Allstate Health and Benefits (2)

Consolidated $ 5,787 $ 5,773

(1) The balances reflect the elimination of related party investments between segments.

(2) As of March 31, 2025 and December 31, 2024, $ 2.07 billion and $ 1.91 billion of investments, respectively, and $ 526 million and $ 521 million, respectively, of deferred policy acquisition costs are classified as held for sale and not included in the table above.

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Notes to Condensed Consolidated Financial Statements

Note 5 Investments

Portfolio composition

($ in millions) September 30, 2024 December 31, 2023

($ in millions) March 31, 2025 December 31, 2024

Fixed income securities, at fair value $ 51,993 $ 52,747

7 unchanged sentences

($ in millions) Amortized cost, net Gross unrealized Fair

September 30, 2024

March 31, 2025

government and agencies $ 10,700 $ 123 $ ( 118 ) $ 10,705

2 unchanged sentences

Foreign government 1,311 31 ( 8 ) 1,334

ABS 1,173 14 ( 3 ) 1,184

Asset-backed securities (“ABS”)

1,711 10 ( 8 ) 1,713

Total fixed income securities $ 52,340 $ 536 $ ( 883 ) $ 51,993

7 unchanged sentences

Scheduled maturities for fixed income securities

($ in millions) September 30, 2024 December 31, 2023

($ in millions) March 31, 2025 December 31, 2024

Amortized cost, net Fair

10 unchanged sentences

Net investment income

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Fixed income securities $ 608 $ 526

7 unchanged sentences

Net investment income

$ 783 $ 689 $ 2,259 $ 1,874

Third Quarter 2024 Form 10-Q 11

First Quarter 2025 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements

Net gains (losses) on investments and derivatives by asset type

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

Net gains (losses) on investments and derivatives by type

($ in millions) Three months ended March 31,

Fixed income securities $ ( 128 ) $ ( 101 )

Equity securities ( 112 ) 62

Mortgage loans ( 1 ) ( 1 ) — ( 4 )

Limited partnership interests ( 5 ) 8

3 unchanged sentences

Net gains (losses) on investments and derivatives $ ( 349 ) $ ( 164 )

(1) Related to the loss for the carrying value of the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”).

(1) 2025 is related to losses recorded for variable interests in Adirondack Insurance Exchange (“Adirondack”) and New Jersey Skylands Insurance Association (“Skylands”) (together “Reciprocal Exchanges”).

2024 is related to the loss for the carrying value of the surplus notes issued by the Reciprocal Exchanges.

See Note 8 for further detail.

1 unchanged sentence

($ in millions)

Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

Three months ended March 31,

Sales $ ( 137 ) $ ( 111 )

1 unchanged sentence

Valuation change of equity investments (1)

119 ( 34 ) 207 187

Valuation change and settlements of derivatives ( 19 ) ( 8 )

2 unchanged sentences

Gross realized gains (losses) on sales of fixed income securities

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Gross realized gains $ 71 $ 41

1 unchanged sentence

Net appreciation (decline) recognized in net income for assets that are still held

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Equity securities $ ( 95 ) $ 61

1 unchanged sentence

Total $ ( 112 ) $ 91

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Notes to Condensed Consolidated Financial Statements

Credit losses recognized in net income

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Fixed income securities:

Municipal $ ( 2 ) $ — $ ( 2 ) $ —

Corporate $ ( 1 ) $ 4

Total fixed income securities ( 1 ) 4

Mortgage loans ( 1 ) ( 1 ) — ( 4 )

Limited partnership interests ( 8 ) ( 9 ) ( 24 ) ( 25 )

Other investments

1 unchanged sentence

( 52 ) ( 123 )

Total credit losses by asset type $ ( 12 ) $ ( 19 ) $ ( 144 ) $ ( 68 )

Commitments to fund commercial mortgage loans and bank loans — ( 1 ) 1 ( 1 )

Commitments to fund line of credit, commercial mortgage loans and bank loans

Total $ ( 76 ) $ ( 115 )

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Notes to Condensed Consolidated Financial Statements

Unrealized net capital gains and losses included in accumulated other comprehensive income (“AOCI”)

2 unchanged sentences

gains (losses)

September 30, 2024 Gains Losses

March 31, 2025 Gains Losses

Fixed income securities $ 51,993 $ 536 $ ( 883 ) $ ( 347 )

1 unchanged sentence

Derivative instruments — — ( 2 ) ( 2 )

Limited partnership interests

Investments classified as held for sale ( 91 )

7 unchanged sentences

Derivative instruments — — ( 2 ) ( 2 )

Limited partnership interests (1)

Investments classified as held for sale ( 110 )

Unrealized net capital gains and losses, pre-tax ( 983 )

2 unchanged sentences

Unrealized net capital gains and losses, after-tax $ ( 771 )

(1) Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of the equity method of accounting (“EMA”) limited partnerships’ OCI.

Fair value and gross unrealized gains and losses are not applicable.

Change in unrealized net capital gains (losses)

($ in millions) Nine months ended September 30, 2024

($ in millions) Three months ended March 31, 2025

Fixed income securities $ 522

1 unchanged sentence

Derivative instruments —

Limited partnership interests 4

Investments classified as held for sale

2 unchanged sentences

Change in unrealized net capital gains and losses, after-tax

Third Quarter 2024 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements

Mortgage loans The Company’s mortgage loans totaled $ 770 million and $ 784 million, net of credit loss allowance, as of March 31, 2025 and December 31, 2024, respectively, and are primarily commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States.

Substantially all of the commercial mortgage loans are non-recourse to the borrower.

Residential mortgage loans totaled $ 80 million and $ 61 million as of March 31, 2025 and December 31, 2024, respectively, and are recourse to the borrower.

Limited partnership interests

Carrying value for limited partnership interests

($ in millions) September 30, 2024 December 31, 2023

($ in millions) March 31, 2025 December 31, 2024

Private equity $ 7,744 $ 7,734

3 unchanged sentences

Short-term investments, including money market funds, commercial paper, U.S.

Treasury bills and other short-term investments, are carried at fair value.

As of September 30, 2024 and December 31, 2023, the fair value of short-term investments totaled $ 6.99 billion and $ 5.14 billion, respectively.

Treasury bills, fixed income securities with a contractual maturity of one year or less at time of acquisition and other short-term investments, are carried at fair value.

As of March 31, 2025 and December 31, 2024, the fair value of short-term investments totaled $ 6.54 billion and $ 4.54 billion, respectively.

Other investments primarily consist of bank loans, real estate and derivatives.

1 unchanged sentence

Real estate is carried at cost less accumulated depreciation.

First Quarter 2025 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements

Other investments by asset type

($ in millions) September 30, 2024 December 31, 2023

($ in millions) March 31, 2025 December 31, 2024

Bank loans, net $ 274 $ 201

Real estate 625 620

Policy loans — 119

Total $ 901 $ 824

8 unchanged sentences

All reasonably available information relevant to the collectability of the security is considered when developing the estimate of cash flows expected to be collected.

That information generally includes, but is not limited to, the remaining payment terms of the

security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements.

Other information, such as industry analyst reports and forecasts, credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered.

That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements.

Other information, such as industry analyst reports and forecasts, credit ratings and other market data relevant to the realizability of contractual cash flows, may also be considered.

The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement.

3 unchanged sentences

If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.

When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company reverses amounts previously recognized in the credit loss allowance.

When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company reduces the credit loss allowance.

Recoveries after write-offs are recognized when received.

Accrued interest excluded from the amortized cost of fixed income securities totaled $ 560 million and $ 495 million as of September 30, 2024 and December 31, 2023, respectively, and is reported within the accrued

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Notes to Condensed Consolidated Financial Statements

investment income line of the Condensed Consolidated Statements of Financial Position.

Accrued interest excluded from the amortized cost of fixed income securities totaled $ 575 million and $ 574 million as of March 31, 2025 and December 31, 2024, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position.

The Company monitors accrued interest and writes off amounts when they are not expected to be received.

1 unchanged sentence

The process also includes the monitoring of other credit loss indicators such as ratings, ratings downgrades and payment defaults.

The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential credit losses using all reasonably available information relevant to the collectability or recovery of

the security.

Inherent in the Company’s evaluation of credit losses for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer.

3 unchanged sentences

and 3) the extent to which the fair value has been less than amortized cost.

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Notes to Condensed Consolidated Financial Statements

Rollforward of credit loss allowance for fixed income securities

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

2 unchanged sentences

Net (increases) decreases related to credit losses previously reported — 4

(Increase) decrease of allowance related to sales and other

— ( 1 ) 3 ( 1 )

(Increase) decrease related to sales and other

Write-offs — 15

Ending balance $ ( 18 ) $ ( 17 )

Components of credit loss allowance as of September 30

Municipal bonds

Components of credit loss allowance as of March 31

Corporate bonds $ ( 17 ) $ ( 16 )

1 unchanged sentence

Total $ ( 18 ) $ ( 17 )

Third Quarter 2024 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements

Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1)

($ in millions) Less than 12 months 12 months or more Total

September 30, 2024

March 31, 2025

Fixed income securities

19 unchanged sentences

Total fixed income securities 2,204 $ 22,824 $ ( 491 ) 2,583 $ 10,500 $ ( 739 ) $ ( 1,230 )

(1) Includes fixed income securities with fair values of $ 19 million and $ 32 million and unrealized losses of $ 7 million and $ 3 million with credit loss allowances of $ 3 million and $ 8 million as of September 30, 2024 and December 31, 2023, respectively.

Gross unrealized losses by unrealized loss position and credit quality as of September 30, 2024

(1) Includes fixed income securities with fair values of $ 18 million and $ 16 million as of March 31, 2025 and December 31, 2024, respectively, and unrealized losses of $ 1 million and credit loss allowances of $ 3 million as of both March 31, 2025 and December 31, 2024.

Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2025

($ in millions) Investment

7 unchanged sentences

(2) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

First Quarter 2025 Form 10-Q 17

Notes to Condensed Consolidated Financial Statements

Investment grade is defined as a security having a National Association of Insurance Commissioners (“NAIC”) designation of 1 or 2, which is comparable to a rating of Aaa, Aa, A or Baa from Moody’s or AAA, AA, A or BBB from S&P Global Ratings (“S&P”), or a comparable internal rating if an externally provided rating is not available.

4 unchanged sentences

This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread.

Municipal bonds in an unrealized loss position were evaluated based on the underlying credit

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Notes to Condensed Consolidated Financial Statements

quality of the primary obligor, obligation type and quality of the underlying assets.

As of September 30, 2024, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets.

As of March 31, 2025, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

Loans The Company establishes a credit loss allowance for mortgage loans and bank loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company.

8 unchanged sentences

If a loan recovers after a write-off, the estimate of expected credit losses includes the expected recovery.

Accrual of income is suspended for loans that are in default or when full and timely collection of principal

and interest payments is not probable.

Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable.

Accrued income receivable is monitored for recoverability and when not expected to be collected is written off through net investment income.

1 unchanged sentence

Accrued interest is excluded from the amortized cost of loans and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position.

Accrued interest as of September 30, 2024 and December 31, 2023 was not significant for bank loans or mortgage loans.

Accrued interest as of March 31, 2025 and December 31, 2024 was not significant for bank loans or mortgage loans.

Mortgage loans When it is determined a mortgage loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as using collateral value less estimated costs to sell where applicable, including when foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty.

2 unchanged sentences

Individual loan credit loss allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell, when applicable, or present value of the loan’s expected future repayment cash flows.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loan credit loss allowances are estimated.

Debt service coverage ratio is considered a key credit quality indicator when commercial mortgage loan credit loss allowances are estimated.

Debt service coverage ratio represents the amount of estimated cash flow from the property available to the borrower to meet principal and interest payment obligations.

Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.

Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination

September 30, 2024 December 31, 2023

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Notes to Condensed Consolidated Financial Statements

Commercial mortgage loans amortized cost by debt service coverage ratio distribution and year of origination

March 31, 2025 December 31, 2024

($ in millions) 2020 and prior 2021 2022 2023 2024 2025 Total Total

Below 1.0 $ — $ — $ — $ — $ — $ — $ — $ 13

1.0 - 1.25 $ 59 $ — $ 18 $ 25 $ 37 $ — $ 139 $ 137

4 unchanged sentences

Amortized cost, net $ 690 $ 723

Third Quarter 2024 Form 10-Q 17

Notes to Condensed Consolidated Financial Statements

Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered

temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.

Payments on all mortgage loans were current as of September 30, 2024 and December 31, 2023.

Commercial mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is

considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.

Payments on all mortgage loans were current as of March 31, 2025 and December 31, 2024.

Rollforward of credit loss allowance for mortgage loans

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

5 unchanged sentences

Bank loans When it is determined a bank loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate.

Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss allowances are estimated.

Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss

allowances are estimated.

The ratings are either received from the Securities Valuation Office of the NAIC based on availability of applicable ratings from rating agencies on the NAIC credit rating provider list or a comparable internal rating.

1 unchanged sentence

Bank loans amortized cost by credit rating and year of origination

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

($ in millions) 2020 and prior 2021 2022 2023 2024 2025 Total Total

8 unchanged sentences

Rollforward of credit loss allowance for bank loans

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Beginning balance $ ( 10 ) $ ( 22 )

Net (increases) decreases related to credit losses ( 8 ) 3

Reduction of allowance related to sales — 28 — 34

Write-offs 2 6

1 unchanged sentence

$ ( 16 ) $ ( 13 )

First Quarter 2025 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

Note 6 Fair Value of Assets and Liabilities

1 unchanged sentence

The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available.

Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the

fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Assets and liabilities whose values are based on the following:

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Notes to Condensed Consolidated Financial Statements

(a) Quoted prices for similar assets or liabilities in active markets;

12 unchanged sentences

The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards.

For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded.

For fair values received from

third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded.

For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models.

1 unchanged sentence

In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities.

The Company performs ongoing price validation procedures such as back-testing of actual

sales, which corroborate the various inputs used in internal models to market observable data.

The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data.

When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

6 unchanged sentences

Certain assets are not carried at fair value on a recurring basis, including mortgage loans, bank loans, real estate and policy loans and are only included in the fair value hierarchy disclosure when the individual investment is reported at fair value.

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Notes to Condensed Consolidated Financial Statements

In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments.

6 unchanged sentences

The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Third Quarter 2024 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

Corporate - privately placed:

Privately placed are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data.

Privately placed securities are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data.

The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer.

13 unchanged sentences

Comprise U.S.

government and agencies, municipal, corporate and MBS fixed income securities.

government and agencies, municipal, corporate, MBS fixed income securities and short-term.

The significant inputs and valuation techniques are based on the respective asset type as described above.

5 unchanged sentences

Corporate - public and privately placed:

Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable.

Primarily valued using a discounted cash flow model that is widely accepted in the financial services industry using inputs that have not been corroborated to be market observable.

In certain situations, non-binding broker quotes where the inputs have not been corroborated to be market observable are used.

Other inputs for corporate fixed income securities include expected cash flows, an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer.

7 unchanged sentences

Certain options (including swaptions) are valued using models that are widely accepted in the financial services industry.

These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility.

These are categorized as Level 3 as a result of the significance of non-market observable inputs such

First Quarter 2025 Form 10-Q 21

Notes to Condensed Consolidated Financial Statements

as volatility.

Other primary inputs include interest rate yield curves and quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.

Certain OTC interest rate swaps associated with real estate investments are valued using non-market observable counterparty valuations.

• Other assets:

5 unchanged sentences

The significant inputs and valuation techniques are based on the respective asset type as described above.

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Notes to Condensed Consolidated Financial Statements

Assets measured at fair value on a non-recurring basis

2 unchanged sentences

Investments reported at net asset value (“NAV”)

Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV

provided by the investees and are excluded from the fair value hierarchy.

Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy.

These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner.

The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10 - 12 years.

As of September 30, 2024, the Company has commitments to invest $ 161 million in these limited partnership interests.

As of March 31, 2025, the Company has commitments to invest $ 153 million in limited partnership interests that are reported at net asset value.

Assets and liabilities measured at fair value

September 30, 2024

March 31, 2025

($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total

13 unchanged sentences

Assets held for sale 264 1,687 7 1,958

177 1,534 7 — 1,718

Total recurring basis assets 15,540 48,560 845 ( 1 ) 64,944

1 unchanged sentence

Total assets at fair value $ 15,540 $ 48,560 $ 847 $ ( 1 ) $ 64,946

% of total assets at fair value 20.8 % 78.1 % 1.1 % — % 100.0 %

Investments reported at NAV 1,012

3 unchanged sentences

Total liabilities at fair value $ — $ ( 7 ) $ ( 1 ) $ 7 $ ( 1 )

% of total liabilities at fair value 100.0 % 177.8 % — % ( 177.8 ) % 100.0 %

(1) Excludes $ 150 million of preferred stock measured at cost.

Third Quarter 2024 Form 10-Q 21

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Notes to Condensed Consolidated Financial Statements

15 unchanged sentences

Other assets — — 134 134

Assets held for sale 241 1,536 7 1,784

Total recurring basis assets 16,956 45,779 802 ( 19 ) 63,518

1 unchanged sentence

Total assets at fair value $ 16,956 $ 45,779 $ 805 $ ( 19 ) $ 63,521

% of total assets at fair value 21.2 % 77.6 % 1.2 % — % 100.0 %

Investments reported at NAV 1,096

3 unchanged sentences

Total liabilities at fair value $ ( 1 ) $ ( 1 ) $ — $ 1 $ ( 1 )

% of total liabilities at fair value 50.0 % 250.0 % — % ( 200.0 ) % 100.0 %

(1) Excludes $ 150 million of preferred stock measured at cost.

As of September 30, 2024 and December 31, 2023, Level 3 fair value measurements of fixed income securities total $ 181 million and $ 153 million, respectively, and include $ 28 million and $ 26 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 5 million and $ 11 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies.

An increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value.

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As of March 31, 2025 and December 31, 2024, Level 3 fair value measurements of fixed income securities totaled $ 285 million and $ 248 million, respectively, and included $ 86 million and $ 87 million, respectively, of securities valued based on third-party discounted cash flow pricing models where the inputs have not been corroborated to be market observable, $ 24 million and $ 22 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 2 million for both periods, of municipal fixed income securities that are not rated by third-party credit rating agencies.

An increase (decrease) in credit spreads for fixed income securities valued based on third-party discounted cash flow pricing models or non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value.

First Quarter 2025 Form 10-Q 23

Notes to Condensed Consolidated Financial Statements

Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2024

Balance as of

June 30, 2024 Total gains (losses)

Transfers Transfers (to) from held for sale

Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2025

Balance as of

September 30, 2024

($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements

December 31, 2024 Total gains (losses)

Transfers Balance as of

March 31, 2025

($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements

Fixed income securities:

11 unchanged sentences

Total recurring Level 3 assets $ 802 $ 12 $ 1 $ 26 $ ( 7 ) $ 25 $ ( 13 ) $ ( 1 ) $ 845

Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2024

Balance as of December 31, 2023 Total gains (losses)

Transfers Transfers (to) from held for sale

Balance as of September 30, 2024

($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements

Fixed income securities:

Municipal $ 11 $ ( 2 ) $ — $ — $ — $ — $ — $ ( 2 ) $ — $ ( 2 ) $ 5

Corporate - public 26 1 1 — — ( 7 ) 16 ( 9 ) — — 28

Corporate - privately placed 58 ( 6 ) — — — — 1 ( 2 ) — — 51

ABS 58 — — — — — 41 — — ( 2 ) 97

Total fixed income securities 153 ( 7 ) 1 — — ( 7 ) 58 ( 13 ) — ( 4 ) 181

Equity securities 402 18 — — — — 14 ( 26 ) — — 408

Short-term investments 1 — — — — — 22 ( 20 ) — ( 1 ) 2

Other investments 2 — — — — — — — — — 2

Other assets 118 5 — — — — — — — — 123

Assets held for sale — — — — — 7 — — — — 7

Total recurring Level 3 assets $ 676 $ 16 $ 1 $ — $ — $ — $ 94 $ ( 59 ) $ — $ ( 5 ) $ 723

Third Quarter 2024 Form 10-Q 23

Notes to Condensed Consolidated Financial Statements

Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2023

Balance as of

June 30, 2023 Total gains (losses)

Transfers Balance as of

September 30, 2023

($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements

Fixed income securities:

Municipal $ 12 $ — $ — $ — $ — $ — $ ( 1 ) $ — $ — $ 11

Corporate - public 26 — ( 1 ) — — — — — — 25

Corporate - privately placed 60 — ( 1 ) — — — — — — 59

ABS 34 — — — — 4 — — — 38

Total fixed income securities 132 — ( 2 ) — — 4 ( 1 ) — — 133

Equity securities 381 15 — — — — ( 13 ) — — 383

Short-term investments 6 — — — — 10 — — — 16

Other investments 2 — — — — — — — — 2

Other assets 104 9 — — — — — — — 113

Total recurring Level 3 assets $ 625 $ 24 $ ( 2 ) $ — $ — $ 14 $ ( 14 ) $ — $ — $ 647

Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2023

Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2024

Balance as of

December 31, 2023 Total gains (losses)

Transfers Balance as of September 30, 2023

($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements

Transfers Balance as of

March 31, 2024

($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements

Fixed income securities:

10 unchanged sentences

Total Level 3 gains (losses) included in net income

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

2 unchanged sentences

Operating costs and expenses

(1) Prior to the first quarter of 2024, Level 3 gains (losses) included in operating costs and expenses were reported in this table within net gains (losses) on investments and derivatives.

Historical results have been updated to conform with this presentation.

There were no transfers into Level 3 during the three and nine months ended September 30, 2024.

There were no transfers into Level 3 during the three months ended September 30, 2023.

Transfers into Level 3 during the nine months ended September 30, 2023 included situations where securities were written down utilizing an internal price where the inputs have

not been corroborated to be market observable resulting in the securities being classified as Level 3.

There were no transfers out of Level 3 during the three and nine months ended September 30, 2024 and 2023.

Transfers into Level 3 during the three months ended March 31, 2025 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3.

There were no transfers into Level 3 during the three months ended March 31, 2024.

Transfers out of Level 3 during the three months ended March 31, 2025 included situations where a broker quote was used in the prior period and a quote with market observable inputs became available from the Company’s independent third-party valuation service provider in the current period.

Any gains or losses related to the change in valuation source for individual securities were not significant.

There were no transfers out of Level 3 during the three months ended March 31, 2024.

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1 unchanged sentence

Valuation changes included in net income and OCI for Level 3 assets and liabilities still held

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

Fixed income securities:

Municipal $ ( 2 ) $ — $ ( 2 ) $ —

Corporate - public $ ( 1 ) $ —

2 unchanged sentences

Equity securities 15 9

Other investments — — — ( 1 )

Other assets — 2

7 unchanged sentences

Corporate - public $ 1 $ 2

Corporate - privately placed — ( 1 ) — —

Changes in unrealized net capital gains and losses reported in OCI $ 1 $ 2

Financial instruments not carried at fair value

($ in millions) September 30, 2024 December 31, 2023

Financial assets Fair value level Amortized cost, net Fair

Amortized cost, net Fair

($ in millions) March 31, 2025 December 31, 2024

Financial assets Fair value level Amortized cost, net (1)

Amortized cost, net (1)

Mortgage loans Level 3 $ 770 $ 741 $ 784 $ 746

2 unchanged sentences

value Carrying value (1)

Contractholder funds on investment contracts (1)

Level 3 $ — $ — $ 46 $ 46

Debt Level 2 $ 8,086 $ 7,813 $ 8,085 $ 7,740

2 unchanged sentences

Level 3 39 39 40 40

(1) As of September 30, 2024, all contractholder funds on investment contracts are held for sale.

(1) Represents the amounts reported on the Condensed Consolidated Statements of Financial Position.

3 unchanged sentences

Asset replication refers to the “synthetic” creation of assets through the use of derivatives.

The Company replicates fixed income securities using a combination of a credit default swap, index total return swap, options, futures, or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically

replicate the economic characteristics of one or more cash market securities.

The Company replicates equity securities using futures, index total return swaps, and options to increase equity exposure.

2 unchanged sentences

Fixed income index total return swaps are used to offset valuation losses in the fixed income portfolio during periods of declining market values.

Credit default swaps are typically used to mitigate the credit risk within the Property-Liability

Third Quarter 2024 Form 10-Q 25

Notes to Condensed Consolidated Financial Statements

fixed income portfolio.

Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio.

Equity index total return swaps, futures and options are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values.

1 unchanged sentence

Equity derivatives may also be utilized to replicate cash market positions to increase equity exposure.

Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations.

When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges.

The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements.

However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date.

The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position.

For those derivatives which qualify and have been designated as fair value accounting hedges, net

income includes the changes in the fair value of both the derivative instrument and the hedged risk.

For cash flow hedges, gains and losses are amortized from AOCI and are reported in net income in the same period the forecasted transactions being hedged impact net income.

Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding

First Quarter 2025 Form 10-Q 25

Notes to Condensed Consolidated Financial Statements

foreign currency denominated investments and foreign operations.

As of March 31, 2025 and December 31, 2024, the Company has not designated any fair value, cash flow or net investment hedge accounting relationships.

Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting.

For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable.

With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis.

However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive

or pay to terminate the derivative contracts at the reporting date.

The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements (“MNAs”) and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position.

In connection with the sale of ALIC and certain affiliates in 2021, the sale agreement included a provision related to contingent consideration that may be earned over a ten-year period with the first potential payment date commencing on January 1, 2026 and a final potential payment date of January 1, 2035.

The contingent consideration is determined annually based on the average ten-year Treasury rate over the preceding three-year period compared to a designated rate.

The contingent consideration is determined annually based on the average ten-year U.S.

Treasury rate over the preceding three-year period compared to a designated rate.

The contingent consideration meets the definition of a derivative and is accounted for on a fair value basis with periodic changes in fair value reflected in earnings.

There are no collateral requirements related to the contingent consideration.

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Notes to Condensed Consolidated Financial Statements

Summary of the volume and fair value positions of derivative instruments as of September 30, 2024

Summary of the volume and fair value positions of derivative instruments as of March 31, 2025

($ in millions, except number of contracts) Volume (1)

5 unchanged sentences

Equity and index contracts

Options Other investments n/a 6 — — —

Futures Other assets n/a 600 1 1 —

2 unchanged sentences

Contingent consideration Other assets 250 n/a 134 134 —

Credit default contracts

Credit default swaps – buying protection Other investments 30 n/a — — —

Total asset derivatives $ 775 4,134 $ 130 $ 136 $ ( 6 )

2 unchanged sentences

Interest rate contracts

Interest rate swap agreements Other liabilities & accrued expenses 37 n/a $ ( 1 ) $ — $ ( 1 )

Futures Other liabilities & accrued expenses n/a 3,691 — — —

Equity and index contracts

Options Other liabilities & accrued expenses n/a 6 — — —

Futures Other liabilities & accrued expenses n/a 464 — — —

6 unchanged sentences

(n/a = not applicable)

Third Quarter 2024 Form 10-Q 27

26 www.allstate.com

Notes to Condensed Consolidated Financial Statements

7 unchanged sentences

Equity and index contracts

Options Other investments n/a 32 — — —

Futures Other assets n/a 437 — — —

2 unchanged sentences

Contingent consideration Other assets 250 n/a 134 134 —

Credit default contracts

Credit default swaps – buying protection Other investments 34 n/a ( 1 ) — ( 1 )

Total asset derivatives $ 852 5,033 $ 154 $ 155 $ ( 1 )

5 unchanged sentences

Futures Other liabilities & accrued expenses n/a 662 — — —

Foreign currency contracts

Foreign currency forwards Other liabilities & accrued expenses $ 306 n/a ( 3 ) 1 ( 4 )

Credit default contracts

Credit default swaps – buying protection Other liabilities & accrued expenses 19 n/a ( 1 ) — ( 1 )

Total liability derivatives — 12,774 ( 1 ) $ — $ ( 1 )

6 unchanged sentences

Gross amount Counter-party netting Cash collateral (received) pledged Net amount on balance sheet Securities collateral (received) pledged Net amount

September 30, 2024

March 31, 2025

Asset derivatives $ 2 $ ( 7 ) $ 6 $ 1 $ — $ 1

3 unchanged sentences

Liability derivatives ( 1 ) 1 — — — —

(1) All OTC derivatives are subject to enforceable master netting agreements.

28 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges

(1) All OTC derivatives are subject to enforceable MNAs.

Gains (losses) from valuation and settlements reported on derivatives

($ in millions) Net gains (losses) on investments and derivatives Operating costs and expenses Total gain (loss) recognized in net income on derivatives

Three months ended September 30, 2024

Interest rate contracts $ 42 $ — $ 42

Equity and index contracts ( 2 ) 10 8

Contingent consideration — 2 2

Foreign currency contracts ( 23 ) — ( 23 )

Credit default contracts 3 — 3

Total $ 20 $ 12 $ 32

Nine months ended September 30, 2024

Interest rate contracts $ 21 $ — $ 21

Equity and index contracts ( 17 ) 24 7

Contingent consideration — 5 5

Foreign currency contracts ( 9 ) — ( 9 )

Credit default contracts 2 — 2

Total $ ( 3 ) $ 29 $ 26

Three months ended September 30, 2023

Three months ended March 31, 2025

Interest rate contracts $ ( 1 ) $ — $ ( 1 )

Equity and index contracts — ( 11 ) ( 11 )

Contingent consideration — 9 9

Foreign currency contracts ( 18 ) — ( 18 )

Credit default contracts ( 1 ) — ( 1 )

Total $ ( 19 ) $ ( 11 ) $ ( 30 )

Nine months ended September 30, 2023

Three months ended March 31, 2024

Interest rate contracts $ ( 7 ) $ — $ ( 7 )

4 unchanged sentences

Total $ ( 8 ) $ 16 $ 8

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate.

First Quarter 2025 Form 10-Q 27

Notes to Condensed Consolidated Financial Statements

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable MNAs and obtaining collateral where appropriate.

The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded.

OTC cash and securities collateral pledged

($ in millions) September 30, 2024

($ in millions) March 31, 2025

Pledged by the Company $ 6

4 unchanged sentences

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless.

This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements.

As of September 30, 2024 and December 31, 2023, the Company did not have any counterparty credit exposure.

This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable MNAs.

OTC derivatives counterparty credit exposure by counterparty credit rating

($ in millions) March 31, 2025 December 31, 2024

Number of counter-parties Notional amount (2)

Credit exposure (2)

Exposure, net of collateral (2)

Number of counter-parties Notional amount (2)

Credit exposure (2)

Exposure, net of collateral (2)

1 $ — $ — $ — 1 $ 213 $ 10 $ 1

A+ — — — — 3 389 10 1

Total 1 $ — $ — $ — 4 $ 602 $ 20 $ 2

(1) Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.

(2) Only OTC derivatives with a net positive fair value are included for each counterparty.

For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts.

Exchange traded and cleared margin deposits

($ in millions) September 30, 2024

($ in millions) March 31, 2025

Pledged by the Company $ 82

2 unchanged sentences

Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions.

To limit this risk,

Third Quarter 2024 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

the Company’s senior management has established risk control limits.

In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

To limit this risk, the Company’s senior management has established risk control limits.

Certain of the Company’s derivative transactions contain credit-risk-contingent termination events and cross-default provisions.

Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s financial strength credit

ratings by Moody’s or S&P fall below a certain level.

Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s financial strength credit ratings by Moody’s or S&P fall below a certain level.

Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments.

The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.

($ in millions) September 30, 2024 December 31, 2023

($ in millions) March 31, 2025 December 31, 2024

Gross liability fair value of contracts containing credit-risk-contingent features $ 3 $ 1

2 unchanged sentences

Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ — $ —

28 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Note 8 Variable Interest Entities

Consolidated VIEs primarily include Adirondack Insurance Exchange (“Adirondack”), a New York reciprocal insurer, and New Jersey Skylands Insurance Association (“Skylands”), a New Jersey reciprocal insurer.

Consolidated VIEs primarily include Adirondack, a New York reciprocal insurer, and Skylands, a New Jersey reciprocal insurer.

The Reciprocal Exchanges are insurance carriers organized as unincorporated associations.

1 unchanged sentence

The results of the Reciprocal Exchanges are included in the Allstate Protection segment as the Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance.

The Company received a management fee for the services provided to the Reciprocal Exchanges totaling $ 2 million and $ 23 million for the three and nine months ended September 30, 2024, respectively, compared to $ 14 million and $ 37 million for the three and nine months ended September 30, 2023, respectively.

In addition, as of September 30, 2024 and December 31, 2023, the Company holds interests of $ 123 million in the form of surplus notes that provide capital to the Reciprocal Exchanges and absorb expected losses.

Due to ongoing operating losses, the Company recorded a loss for the carrying value of the surplus notes in the amount of $ 123 million in the first quarter of 2024.

The loss has been reflected as a capital transaction attributable to noncontrolling interest as the Company expects 100 % of its interests in surplus notes to absorb expected losses of the Reciprocal Exchanges.

Adirondack and Skylands are withdrawing from writing substantially all business.

As the reciprocal insurers are dissolved, policyholders will share any residual unassigned surplus but are not subject to

assessment for any deficit in unassigned surplus of the Reciprocal Exchanges.

The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company.

The New York State Department of Financial Services has approved the withdrawal plan for Adirondack to non-renew or cancel all policies effective as of December 31, 2024.

National General Holdings Corp.

entered into a $ 15 million line of credit agreement with Adirondack to pay claims if it is unable to pay, which will expire after a final reserve study is conducted to determine if additional funding is needed as of December 31, 2027.

As of September 30, 2024, there is no outstanding balance on the line of credit.

Due to ongoing operating losses, the Company recorded a loss related to variable interests held in the Reciprocal Exchanges of $ 67 million in the first quarter of 2025 and $ 123 million in the first quarter of 2024.

These losses have been reflected as capital transactions attributable to noncontrolling interest as the Company expects 100 % of its interests in surplus notes and lines of credit to absorb expected losses of the Reciprocal Exchanges.

Adirondack has withdrawn and stopped writing new business and Skylands has withdrawn substantially all business and stopped writing new business.

As the reciprocal insurers are dissolved, policyholders will share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges.

The assets of the Reciprocal Exchanges

can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company.

The New York State Department of Financial Services approved the withdrawal plan for Adirondack to non-renew or cancel all policies effective as of December 31, 2024.

Additionally, the Company waived all fees payable by Adirondack after July 1, 2024, excluding Loss Adjustment Expenses associated with individual claims.

The New Jersey Department of Banking and Insurance has acknowledged the withdrawal plan filed on behalf of Skylands to withdraw from providing personal lines insurance, except dwelling fire and watercraft policies, beginning December 14, 2024.

Skylands has a 100 % quota share reinsurance agreement with the Company to cede all of Skylands’ business to the Company.

Claims and claims expense ceded to the Company were $( 6 ) million and $ 24 million for the three and nine months ended September 30, 2024, respectively, compared to $ 10 million and $ 27 million for the three and nine months ended September 30, 2023, respectively.

The Reciprocal Exchanges generated $ 48 million and $ 170 million of earned premiums for the three and nine months ended September 30, 2024, respectively, compared to $ 59 million and $ 173 million for the three and nine months ended September 30, 2023,

30 www.allstate.com

Notes to Condensed Consolidated Financial Statements

respectively.

Total costs and expenses were $ 62 million and $ 207 million for the three and nine months ended September 30, 2024, respectively, compared to $ 58 million and $ 202 million for the three and nine months ended September 30, 2023, respectively.

The table below reflects the consolidated VIE results, which exclude all intercompany transactions including surplus notes and related accrued interest, management fees and intercompany reinsurance transactions.

Assets and liabilities of Reciprocal Exchanges included in the condensed consolidated statement of financial position (1)

($ in millions) September 30, 2024 December 31, 2023

The New Jersey Department of Banking and Insurance acknowledged the withdrawal plan filed on behalf of Skylands to withdraw from providing personal lines insurance, except dwelling fire and watercraft policies, beginning December 14, 2024.

Skylands has a 100 % quota share reinsurance agreement to cede all of Skylands’ business to the Company.

Claims and claims expense ceded to the Company were $ 1 million and $ 12 million for the three months ended March 31, 2025 and 2024, respectively.

The Company received a management fee for the services provided to the Reciprocal Exchanges totaling zero and $ 10 million for the three months ended March 31, 2025 and 2024, respectively.

The Reciprocal Exchanges generated $ 1 million and $ 61 million of earned premiums for the three months ended March 31, 2025 and 2024, respectively.

Total costs and expenses were $ 2 million and $ 87 million for the three months ended March 31, 2025 and 2024, respectively.

Assets and liabilities of Reciprocal Exchanges

($ in millions) March 31, 2025 December 31, 2024

Fixed income securities $ 3 $ 47

Short-term investments 105 112

Deferred policy acquisition costs 12 25

Premium installment and other receivables, net 1 9

6 unchanged sentences

Total liabilities $ 357 $ 471

(1) Intercompany balances eliminated in consolidation

Total assets $ ( 42 ) $ ( 26 )

Total liabilities ( 193 ) ( 189 )

Note 9 Reserve for Property and Casualty Insurance Claims and Claims Expense

4 unchanged sentences

Medical inflation, increased treatment trends, higher attorney representation, rising litigation costs and more severe accidents have contributed to higher third-party bodily injury loss costs.

The Company continues to digitize and modernize claim processes where necessary to increase effectiveness and efficiency.

The Company continues to digitize and modernize claim processes to

First Quarter 2025 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

increase effectiveness and efficiency.

These factors may lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability.

Generally, the initial reserves for a new accident year are established based on claim frequency and severity assumptions for different business segments, lines and coverages based on historical relationships to relevant inflation indicators.

Reserves for prior accident

years are statistically determined using several different actuarial estimation methods.

Reserves for prior accident years are statistically determined using several different actuarial estimation methods.

Changes in auto claim frequency may result from changes in mix of business, driving behaviors, miles driven or other factors.

4 unchanged sentences

The effects of inflation are implicitly considered in the reserving process.

Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, Run-off Property-Liability and reinsurance and indemnification recoverables, is an inherently uncertain and complex process.

Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of

appropriate reserves, including reserves for catastrophes, Run-off Property-Liability and reinsurance and indemnification recoverables, is an inherently uncertain and complex process.

The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates.

Third Quarter 2024 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

The highest degree of uncertainty is associated with reserves for losses incurred in the initial reporting period as it contains the greatest proportion of losses that have not been reported or settled as well as heightened uncertainty for claims that involve litigation or take longer to settle during periods of rapidly increasing loss costs.

The Company also has uncertainty in the Run-off Property-Liability reserves that are based on events long since passed and are complicated by lack of historical data, legal interpretations, unresolved legal issues and legislative intent based on establishment of facts.

The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of

unsettled claims.

The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims.

Changes in reserve estimates, which may be material, are reported in property and casualty insurance claims and claims expense in the Condensed Consolidated Statements of Operations in the period such changes are determined.

1 unchanged sentence

Rollforward of the reserve for property and casualty insurance claims and claims expense

Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

10 unchanged sentences

Total paid ( 10,034 ) ( 9,153 )

Net balance as of September 30 34,015 32,005

Balance as of September 30 $ 42,743 $ 40,659

Net balance as of March 31 34,096 31,810

Balance as of March 31 $ 43,835 $ 40,143

(1) Recoverables comprises reinsurance and indemnification recoverables.

Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the period.

This expense included losses from catastrophes of $ 4.55 billion and $ 5.57 billion in the nine months ended September 30, 2024 and 2023, respectively, net of recoverables.

Catastrophes are an inherent risk of the property and casualty insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position.

30 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the period.

This expense included losses from catastrophes of $ 2.20 billion and $ 731 million in the three months ended March 31, 2025 and 2024, respectively, net of recoverables.

Prior year reserve reestimates included in claims and claims expense (1)

Non-catastrophe losses Catastrophe losses Total

Non-catastrophe losses Catastrophe losses (2)

($ in millions)

1 unchanged sentence

2024 2025 2024

Three months ended September 30,

Auto $ ( 55 ) $ 27 $ ( 10 ) $ 6 $ ( 65 ) $ 33

Homeowners ( 11 ) 46 ( 1 ) 16 ( 12 ) 62

Other personal lines 54 ( 3 ) ( 3 ) ( 11 ) 51 ( 14 )

Commercial lines 1 13 — 6 1 19

Other business lines ( 3 ) 1 — — ( 3 ) 1

Run-off Property-Liability

59 82 — — 59 82

Protection Services 1 — — — 1 —

Total prior year reserve reestimates $ 46 $ 166 $ ( 14 ) $ 17 $ 32 $ 183

Nine months ended September 30,

Three months ended March 31,

Auto $ ( 238 ) $ ( 67 ) $ ( 11 ) $ ( 7 ) $ ( 249 ) $ ( 74 )

4 unchanged sentences

Run-off Property-Liability

65 85 — — 65 85

Protection Services — ( 1 ) — — — ( 1 )

Total prior year reserve reestimates $ ( 235 ) $ 11 $ ( 16 ) $ ( 162 ) $ ( 251 ) $ ( 151 )

$ ( 8 ) $ 374 $ ( 314 ) $ 6 $ ( 322 ) $ 380

(1) Favorable reserve reestimates are shown in parentheses.

Third Quarter 2024 Form 10-Q 33

(2) 2025 includes $ 66 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024.

First Quarter 2025 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Rollforward of reserve for future policy benefits (1)

Nine months ended September 30,

Three months ended March 31,

health Traditional

2 unchanged sentences

Beginning balance $ 712 $ 1,688 $ 6 $ 325 $ 718 $ 2,013

Classified as liabilities held for sale

1,247 — 337 — 1,584 —

Total beginning balance

$ 1,959 $ 1,688 $ 343 $ 325 $ 2,302 $ 2,013

Beginning balance at original discount rate $ 2,013 $ 1,737 $ 354 $ 330 $ 2,367 $ 2,067

7 unchanged sentences

Effect of changes in discount rate assumptions ( 54 ) ( 81 ) ( 10 ) ( 9 ) ( 64 ) ( 90 )

Reclassified to liabilities held for sale ( 1,270 ) — ( 345 ) — ( 1,615 ) —

Liabilities held for sale

( 1,022 ) — ( 366 ) — ( 1,388 ) —

Ending balance $ 1,090 $ 1,762 $ 7 $ 353 $ 1,097 $ 2,115

1 unchanged sentence

Beginning balance $ 757 $ 2,453 $ 13 $ 657 $ 770 $ 3,110

Classified as liabilities held for sale 1,943 — 685 — 2,628 —

Total beginning balance

$ 2,700 $ 2,453 $ 698 $ 657 $ 3,398 $ 3,110

Beginning balance at original discount rate $ 2,758 $ 2,495 $ 727 $ 656 $ 3,485 $ 3,151

7 unchanged sentences

Effect of changes in discount rate assumptions ( 60 ) ( 86 ) ( 31 ) ( 22 ) ( 91 ) ( 108 )

Reclassified to liabilities held for sale ( 1,998 ) — ( 704 ) — ( 2,702 ) —

Liabilities held for sale

( 1,716 ) — ( 723 ) — ( 2,439 ) —

Ending balance $ 1,148 $ 2,509 $ 13 $ 672 $ 1,161 $ 3,181

5 unchanged sentences

$ 58 $ 667 $ 6 $ 318 $ 64 $ 985

(1) Excludes $ 220 million and $ 266 million of reserves related to short-duration and other contracts as of September 30, 2024 and 2023, respectively.

(2) Classified as held for sale as of September 30, 2024.

(1) Excludes $ 22 million and $ 259 million of reserves related to short-duration and other contracts as of March 31, 2025 and 2024, respectively.

(2) Classified as held for sale as of March 31, 2025.

32 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Revenue and interest recognized in the condensed consolidated statements of operations

($ in millions) Nine months ended September 30,

($ in millions) Three months ended March 31,

Accident and health $ 222 $ 221

8 unchanged sentences

(2) Total interest expense presented as part of accident, health and other policy benefits on the Condensed Consolidated Statements of Operations.

34 www.allstate.com

Notes to Condensed Consolidated Financial Statements

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts, including those that are classified as held for sale as of September 30, 2024.

As of September 30,

As of March 31,

($ in millions) Undiscounted Discounted Undiscounted Discounted

5 unchanged sentences

Expected future benefits and expenses 1,475 736 1,399 672

The following table provides the weighted-average duration and weighted-average interest rates for the reserve for future policy benefits, including those that are classified as held for sale as of September 30, 2024.

As of September 30,

As of March 31,

Accident and health Traditional life

8 unchanged sentences

The lapse assumption is determined based on historical lapses of the Company’s insurance contracts.

The Company performed the annual review of the mortality, morbidity and lapse experience assumptions in the third quarter of 2024 and 2023 resulting in an increase of $ 1 million and an increase of less than $ 1 million, respectively, to the reserve for future policy benefits.

For the nine months ended September 30, 2024, actual experience for morbidity in accident and health products was higher than expected.

For the nine months ended September 30, 2023, actual experience for morbidity in accident and health products was lower than expected.

For the nine months ended September 30, 2024, actual experience for lapses in accident and health products was lower than expected.

For the nine months ended September 30, 2023, actual experience for lapses in accident and health products was higher than expected.

For the nine months ended September 30, 2024 and 2023, actual experience for mortality and lapses in traditional life products was lower than expected.

Third Quarter 2024 Form 10-Q 35

For the three months ended March 31, 2025, actual experience for lapses in accident and health products was lower than expected.

For the three months ended March 31, 2024, actual experience for lapses in accident and health products was higher than expected.

For the three months ended March 31, 2025, actual experience for lapses in traditional life products was higher than expected.

For the three months ended March 31, 2024, actual experience for lapses in traditional life products was lower than expected.

First Quarter 2025 Form 10-Q 33

Notes to Condensed Consolidated Financial Statements

Contractholder funds

As of September 30, 2024, all contractholder funds are classified as held for sale.

As of March 31, 2025, all contractholder funds are classified as held for sale.

Contractholder funds activity

Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

18 unchanged sentences

Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Property and casualty insurance premiums earned

$ ( 543 ) $ ( 557 )

Accident and health insurance premiums and contract charges ( 13 ) ( 10 )

Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident, health and other policy benefits

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Property and casualty insurance claims and claims expense (1)

Accident, health and other policy benefits

$ ( 1,685 ) $ ( 232 )

Accident, health and other policy benefits

(1) 2025 includes ceded losses related to the Nationwide Reinsurance Program for the California wildfires and March wind/hail events.

Reinsurance and indemnification recoverables

Reinsurance and indemnification recoverables, net

($ in millions) September 30, 2024 December 31, 2023

($ in millions) March 31, 2025 December 31, 2024

Property and casualty

7 unchanged sentences

Rollforward of credit loss allowance for reinsurance recoverables

($ in millions) Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

($ in millions) Three months ended March 31,

Property and casualty (1) (2)

Beginning balance $ ( 63 ) $ ( 62 )

Decrease in the provision for credit losses 2 — — 1

Write-offs — — — —

Ending balance $ ( 62 ) $ ( 61 ) $ ( 62 ) $ ( 61 )

Accident and health insurance

Beginning balance $ ( 3 ) $ ( 3 ) $ ( 3 ) $ ( 3 )

Increase in the provision for credit losses — — — —

Decrease (increase) in the provision for credit losses — ( 2 )

Write-offs — —

Reinsurance recoverables classified as held for sale

Ending balance $ ( 63 ) $ ( 64 )

1 unchanged sentence

(2) Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.

As of March 31, 2025, a credit loss allowance for reinsurance recoverables of $ 1 million for the Health and Benefits segment was classified as held for sale.

Note 12 Deferred Policy Acquisition Costs

The following table shows a roll-forward of DAC on long-duration contracts in the Allstate Health and Benefits segment, along with a reconciliation to the Company’s total DAC balance.

The following table shows a roll-forward of DAC on contracts in the Health and Benefits segment, along with a reconciliation to the Company’s total DAC balance.

Deferred policy acquisition costs activity

($ in millions) Accident and health Traditional

life Interest-sensitive life Total

Nine months ended September 30, 2024

($ in millions) Accident and health insurance long-duration contracts Other health and benefit contracts (1)

Three months ended March 31, 2025

Allstate Health and Benefits

Long-duration contracts

Beginning balance $ 55 $ 9 $ 64

2 unchanged sentences

Experience adjustment ( 4 ) — ( 4 )

Reclassified to assets held for sale ( 277 ) ( 111 ) ( 101 ) ( 489 )

Classified as held for sale

2 ( 7 ) ( 5 )

Total $ 61 $ 9 $ 70

Short-duration contracts 6

Allstate Protection

1 unchanged sentence

Ending balance $ 5,787

Nine months ended September 30, 2023

Three months ended March 31, 2024

Allstate Health and Benefits

Long-duration contracts

Beginning balance $ 321 $ 219 $ 540

3 unchanged sentences

Total $ 317 $ 229 546

Short-duration contracts 27

Allstate Protection

1 unchanged sentence

Ending balance $ 5,946

Third Quarter 2024 Form 10-Q 37

(1) Includes traditional life and interest-sensitive life long-duration contracts and accident and health short-duration contracts.

First Quarter 2025 Form 10-Q 35

Notes to Condensed Consolidated Financial Statements

Note 13 Capital Structure

Repayment of debt On May 15, 2024, the Company repaid, at maturity, $ 350 million of 6.75 % Senior Notes.

Issuance of debt On June 24, 2024, the Company issued $ 500 million of 5.05 % Senior Notes due 2029.

Interest on the Senior Notes is payable semi-annually

in arrears on June 24 and December 24 of each year, beginning on December 24, 2024.

The Senior Notes are redeemable at any time at the applicable redemption price prior to the maturity date.

The net proceeds of this issuance were used for general corporate purposes.

Note 13 Company Restructuring

4 unchanged sentences

• Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $ 28 million and $ 87 million during the three months ended September 30, 2024 and 2023, respectively, and $ 51 million and $ 141 million during the nine months ended September 30, 2024 and 2023, respectively.

Restructuring expenses during the third quarter and first nine months of 2024 primarily relate to

implementing actions to achieve a new phase of the organizational transformation component of the Transformative Growth plan, which commenced in the second quarter of 2024.

Organizational transformation includes streamlining the organization and outsourcing certain aspects of operations.

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $ 16 million and $ 10 million during the three months ended March 31, 2025 and 2024, respectively.

Restructuring expenses during the first quarter of 2025 primarily related to streamlining the organization and outsourcing certain aspects of operations.

These charges are recorded in the Allstate Protection segment.

The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future.

Organizational transformation

($ in millions)

Expected program charges $ 24

Change in estimated program costs

2024 expenses

Remaining program charges $ 8

These charges are primarily recorded in the Allstate Protection segment.

The Company expects these actions will be completed in the first half of 2025.

Restructuring activity during the period

2 unchanged sentences

Expense incurred

Adjustments to liability 6 — 6

Payments and non-cash charges ( 13 ) ( 2 ) ( 15 )

Restructuring liability as of September 30, 2024 $ 37 $ 2 $ 39

As of September 30, 2024, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $ 127 million for employee costs and $ 11 million for exit costs.

Restructuring liability as of March 31, 2025 $ 26 $ 2 $ 28

As of March 31, 2025, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $ 58 million for employee costs and $ 1 million for exit costs.

The organizational transformation phase of the Transformative Growth plan which commenced in the second quarter of 2024 is substantially complete as of March 31, 2025.

2024 Organizational transformation

($ in millions)

Expected program charges $ 24

Change in estimated program initiatives and costs

2024 expenses

2025 expenses

Remaining program charges $ —

Note 14 Guarantees and Contingent Liabilities

3 unchanged sentences

Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations in the last two years.

Because of the Company’s participation, it may be exposed to losses

that surpass the capitalization of these facilities or assessments from these facilities.

Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities or assessments from these facilities.

California FAIR Plan Association On February 11, 2025, the FAIR Plan received regulatory approval to assess member insurers $ 1.00 billion.

The Company’s personal lines and commercial lines average market share used for the assessment was 4.6 % and 2.0 %, respectively, net of credits.

Members are allowed to

request the state insurance commission’s approval to collect temporary supplemental fees from policyholders in the state in order to recoup amounts assessed.

Insurers can request recoupment for 50 % of their portion of assessments up to $ 1.00 billion and 100% thereafter for each residential property and commercial property insurance.

At March 31, 2025, we have accrued for the Company’s share of future estimated assessments based on the wildfire event that began on January 7, 2025.

Several of the Company’s traditional markets per occurrence reinsurance agreements also provide for the inclusion of non-recoupable assessments as part of the definition of loss.

In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures.

The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third-party lawsuits.

The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote.

The terms of the indemnifications

The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain

36 www.allstate.com

Notes to Condensed Consolidated Financial Statements

vary in duration and nature.

other liabilities, such as third-party lawsuits.

The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment of the risk of loss.

The terms of the indemnifications vary in duration and nature.

In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur.

1 unchanged sentence

Historically, the Company has not made any material payments pursuant to these obligations.

Related to the sale of ALNY on October 1, 2021, AIC agreed to indemnify Wilton Reassurance Company in connection with certain representations, warranties and covenants of AIC, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding AIC’s maximum obligation.

Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company.

Related to the sale of ALIC and Allstate Assurance Company on November 1, 2021, AIC and Allstate Financial Insurance Holdings Corporation (collectively, the “Sellers”) agreed to indemnify Everlake US Holdings Company in connection with certain representations, warranties and covenants of the Sellers, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding the Sellers’ maximum obligation.

In connection with the sales of Allstate Life Insurance Company of New York to Wilton Reassurance Company (“Wilton”) and Allstate Life Insurance Company and Allstate Assurance Company to Everlake US Holdings Company (“Everlake”) in 2021, AIC agreed to indemnify Wilton and AIC and Allstate Financial Insurance Holdings Corporation (collectively, the “Sellers”) agreed to indemnify Everlake.

The indemnification is in connection with certain representations, warranties and covenants of the Sellers, and certain liabilities specifically excluded from the transactions, subject to specific contractual limitations regarding the Sellers’ maximum obligations.

Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company.

The aggregate liability balance related to all guarantees was immaterial as of September 30, 2024.

The aggregate liability balance related to all guarantees was immaterial as of March 31, 2025.

Regulation and compliance

5 unchanged sentences

The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting.

Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies.

The Company routinely reviews its practices to validate compliance with laws and regulations and with internal

procedures and policies.

As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies.

21 unchanged sentences

When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court.

In Allstate’s experience, monetary demands in

Third Quarter 2024 Form 10-Q 39

In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company.

First Quarter 2025 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

pleadings bear little relation to the ultimate loss, if any, to the Company.

In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices.

15 unchanged sentences

These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others.

Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below.

When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss

or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below.

There may be other disclosed matters for which a loss is probable or reasonably possible, but such an estimate is not possible.

11 unchanged sentences

However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company.

Claims related proceedings The Company is defending various disputes in Florida that raise challenges to the Company’s practices, processes, and procedures relating to claims for personal injury protection benefits under Florida auto policies.

Medical providers continue to pursue litigation under various theories that challenge the amounts that the Company pays under the personal injury protection coverage, seeking additional benefit payments, as well as

40 www.allstate.com

Notes to Condensed Consolidated Financial Statements

applicable interest, penalties and fees.

In one such lawsuit, Revival Chiropractic v.

Allstate Insurance Company, et al.

filed January 2019), the federal district court denied class certification and plaintiff’s request to file a renewed motion for class certification.

In Revival , on June 2, 2022, the Eleventh Circuit certified to the Florida Supreme Court Allstate’s appeal of the federal district court’s interpretation of the state personal injury protection statute.

The Eleventh Circuit held determination on plaintiff’s class certification appeal pending the outcome of the Florida Supreme Court certification.

The oral argument before the Florida Supreme Court was on March 8, 2023.

On April 25, 2024, the Florida Supreme Court issued a decision in the Company’s favor, finding that the Company’s practice with respect to its payment of certain medical provider charges is consistent with the Company’s policy language and with the state personal injury protection statute.

On May 24, 2024, the Eleventh Circuit entered an order dismissing plaintiff’s class certification appeal and directing the federal district court to enter summary judgment in favor of Allstate.

On July 2, 2024, the federal district court entered judgment in Allstate’s favor.

The Company is defending putative class actions in various courts that raise challenges to the Company’s depreciation practices in homeowner property claims.

Claims related proceedings The Company is defending putative class actions in various courts that raise challenges to the Company’s depreciation practices in homeowner property claims.

In these lawsuits, plaintiffs generally allege that, when calculating actual cash value, the costs of “non-materials” such as labor, general contractor’s overhead and profit, and sales tax should not be subject to depreciation.

1 unchanged sentence

Allstate Fire and Casualty Insurance Company, et al.

38 www.allstate.com

Notes to Condensed Consolidated Financial Statements

filed June 2022);

13 unchanged sentences

The Company is currently defending the following lawsuits:

Kronenberg v.

Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (E.D.N.Y.

filed December 2018);

Allstate Property and Casualty Insurance Company (W.D.

filed June 2019);

Allstate Insurance Company (N.D.

2 unchanged sentences

Ohio filed August 2023);

Property and Casualty Insurance Company (State Court of Habersham Co., Ga.

filed December 2023);

Esurance Property and Casualty Insurance Company and National General Insurance Company (E.D.N.Y.

8 unchanged sentences

No classes have been certified in any of these matters.

Settlements in principle have been reached in the following cases:

Settlements have been reached in the following cases:

Imperial Fire and Casualty Insurance Company (W.D.

filed February 2022);

and Cummings v.

Allstate Property and Casualty Insurance Company (M.D.

filed April 2022).

The Company is defending putative class actions in the U.S.

District Court for the District of Arizona that allege underpayment of uninsured/underinsured motorist claims.

The lawsuits are Dorazio v.

Allstate Fire and Casualty Insurance Company and Loughran v.

MIC General Insurance Corporation , each filed December 2022.

Allstate Property and Casualty Insurance Company (W.D.

filed June 2019);

Kronenberg v.

Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (E.D.N.Y.

filed December 2018) ;

Allstate Property and Casualty Insurance Company (State Court of Habersham Co., Ga.

filed December 2023) ;

and Gleichman Law Firm v.

Allstate Insurance Company (N.D.

filed February 2025).

The Company is defending a putative class action in the U.S.

District Court for the District of Arizona that alleges underpayment of uninsured/underinsured motorist claims, Dorazio v.

Allstate Fire and Casualty Insurance Company , filed December 2022.

The plaintiffs allege that uninsured/underinsured motorist coverages must be stacked, which is combining separate uninsured/underinsured coverage limits of multiple vehicles into one higher coverage limit, where the defendants allegedly did not include specified policy language and did not provide specified notice to policyholders.

No classes have been certified in these matters.

No class has been certified in this matter.

A settlement in principle has been reached in Loughran v.

MIC General Insurance Corporation, a second putative class action alleging the same claims.

In July 2023, the Arizona Supreme Court issued a ruling in Franklin v.

CSAA General Insurance , a matter involving another insurer.

The Franklin decision held, under the factual circumstances of that case, that stacking of uninsured/underinsured motorist coverages was required because the insurer did not include specified policy language and did not issue specified notice.

Other proceedings The Company had an investigatory hearing before the California Insurance Commissioner concerning the private passenger automobile insurance rating practices of Allstate Insurance Company and Allstate Indemnity Company in California.

The investigatory hearing was captioned:

In the Matter of the Rating Practices of Allstate Insurance Company and Allstate Indemnity Company .

Pursuant to the Notice of Hearing issued by the California Insurance Commissioner, the California Insurance Commissioner was investigating:

(1) whether Allstate has potentially violated California insurance law by using illegal price optimization;

(2) how Allstate implemented any such potentially illegal price optimization in its private passenger auto insurance rates and/or class plans;

and (3) how such potentially illegal price optimization impacted Allstate’s private passenger auto insurance policyholders.

Pursuant to an agreement between the Company and the California Department of Insurance, the matter was dismissed on September 17, 2024.

The Company is defending two putative class actions in the U.S.

The Franklin decision held, under the factual circumstances of that case, that stacking of uninsured/underinsured motorist

coverages was required because the insurer did not include specified policy language and did not issue specified notice.

Other proceedings The Company is defending two putative class actions in the U.S.

District Court for the Eastern District of California, Holland Hewitt v.

1 unchanged sentence

Lincoln Benefit Life Company (“LBL”) filed December 2020, following the sale of ALIC.

On April 19, 2023, the district court

Third Quarter 2024 Form 10-Q 41

Notes to Condensed Consolidated Financial Statements

certified a class in Farley.

On April 19, 2023, the district court certified a class in Farley.

LBL is appealing the district court’s order in the Ninth Circuit Court of Appeals.

9 unchanged sentences

The Company is defending a lawsuit in the U.S.

District Court for the Southern District of California,

District Court for the Southern District of California, Chavez v.

Allstate Northbrook Indemnity Company , filed February 2022, where plaintiffs generally allege that Allstate’s Shelter-in-Place Payback program provided insufficient premium relief in response to the reduction in driving in California during the state’s COVID-19 stay-at-home restrictions in 2020 and 2021.

6 unchanged sentences

The suit alleges that certain services that National General provided as a vendor to a large national bank for its collateral protection insurance program violated the Financial Institutions, Reform, Recovery, and Enforcement Act of 1989 (the “Act”), and it seeks civil monetary penalties available under the Act.

The Company is subject to lawsuits related to the collection and use of driving behavior data, including a civil lawsuit filed by the Texas Attorney General in Montgomery County, Texas District Court and putative class action lawsuits filed in federal court.

The lawsuits allege privacy and consumer protection claims and seek actual, statutory and punitive damages, restitution, injunctive relief and attorneys’ fees.

First Quarter 2025 Form 10-Q 39

Notes to Condensed Consolidated Financial Statements

Note 15 Benefit Plans

For the first nine months of 2024, service cost includes a $ 38 million refund of premiums previously paid to the Pension Benefit Guaranty Corporation (“PBGC”).

The PBGC insures defined benefit plans offered by private-sector employers.

PBGC premiums are required to be paid annually and are calculated using a predefined calculation that includes interest rates to discount a plan’s vested benefits.

During the second quarter of 2024, the Company’s defined benefit pension plan elected to use an alternative methodology to calculate the prescribed interest rate in determining premiums for plan year 2023, which resulted in a refund of $ 38 million in previously paid premiums.

Components of net cost (benefit) for pension and other postretirement plans

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

11 unchanged sentences

Interest cost 2 2

Amortization of prior service credit — ( 6 ) ( 1 ) ( 18 )

Costs and expenses 2 2

Remeasurement of benefit obligation

7 ( 9 ) 4 ( 7 )

Remeasurement of plan assets — —

Remeasurement (gains) losses 2 ( 2 )

Postretirement net cost (benefit) $ 9 $ ( 12 ) $ 10 $ ( 17 )

Postretirement net cost $ 4 $ —

Pension and postretirement benefits

2 unchanged sentences

Total net cost $ 87 $ 14

42 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses.

2 unchanged sentences

Pension and postretirement benefits remeasurement gains and losses

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

($ in millions) 2025 2024

4 unchanged sentences

Remeasurement (gains) losses $ 78 $ ( 2 )

Remeasurement losses of $ 26 million and $ 15 million for the third quarter and first nine months of 2024, respectively, related to a decrease in the liability discount rate and changes in other assumptions, partially offset by favorable asset performance compared to expected return on plan assets.

The weighted average discount rate used to measure the pension benefit obligation decreased to 5.02 % at September 30, 2024 compared to 5.62 % at June 30, 2024 and 5.35 % at December 31, 2023 resulting in losses for the third quarter and first nine months of 2024.

For the third quarter of 2024, the actual return on plan assets was higher than the expected return due to higher fixed income valuations from lower market yields and higher public equity returns.

For the first nine months of 2024, the actual return on plan assets was higher than the expected return due to higher equity valuations and tighter credit spreads, partially offset by higher rates.

Remeasurement losses of $ 78 million for the first quarter of 2025, are primarily related to a decrease in the liability discount rate and unfavorable asset performance compared to expected return on plan assets.

The weighted average discount rate used to measure the pension benefit obligation decreased to 5.54 % on March 31, 2025 compared to 5.71 % on December 31, 2024 resulting in losses for the first quarter of 2025.

For the first quarter of 2025, the actual return on plan assets was lower than the expected return due to lower equity valuations, partially offset by higher fixed income valuations driven by lower rates.

40 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Note 16 Supplemental Cash Flow Information

Non-cash investing activities include $ 70 million and $ 54 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, and limited partnerships for the nine months ended September 30, 2024 and 2023, respectively.

Non-cash investing activities include $ 19 million related to right-of-use property and equipment obtained in exchange for lease obligations for the nine months ended September 30, 2024.

Non-cash investing activities include $ 1 million and $ 15 million related to right-of-use real estate obtained in exchange for lease obligations for the nine months ended September 30, 2024 and 2023, respectively, and $ 123 million related to debt assumed by purchaser on sale of real estate for the nine months ended September 30, 2023.

Non-cash financing activities include $ 28 million and $ 38 million related to the issuance of Allstate common shares for vested equity awards for the nine months ended September 30, 2024 and 2023, respectively.

Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $ 86 million and $ 101 million for the nine months ended September 30, 2024 and 2023, respectively.

Non-cash operating activities include $ 50 million and $ 26 million related to right-of-use assets obtained in exchange for lease obligations for the nine months ended September 30, 2024 and 2023, respectively.

Non-cash investing activities include $ 15 million and $ 34 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, and limited partnerships for the three months ended March 31, 2025 and 2024, respectively.

Non-cash investing activities included $ 18 million related to right-of-use property and equipment obtained in exchange for lease obligations for the three months ended March 31, 2024.

Non-cash financing activities include $ 24 million and $ 26 million related to the issuance of Allstate common shares for vested equity awards for the three months ended March 31, 2025 and 2024, respectively.

Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows include cash paid for operating leases related to

amounts included in the measurement of lease liabilities of $ 27 million and $ 30 million for the three months ended March 31, 2025 and 2024, respectively.

Non-cash operating activities include $ 13 million and $ 10 million related to right-of-use assets obtained in exchange for lease obligations for the three months ended March 31, 2025 and 2024, respectively.

Liabilities for collateral received in conjunction with the Company’s securities lending program and OTC and cleared derivatives are reported in other liabilities and accrued expenses or other investments.

The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows:

Third Quarter 2024 Form 10-Q 43

Notes to Condensed Consolidated Financial Statements

($ in millions) Nine months ended September 30,

($ in millions) Three months ended March 31,

Cash flows from operating activities

2 unchanged sentences

Net change in short-term investments 114 ( 127 )

Operating cash flow (used) provided $ ( 130 ) $ 265

Operating cash flow (used) $ ( 96 ) $ ( 158 )

Net change in liabilities

1 unchanged sentence

Liabilities for collateral, end of period ( 2,137 ) ( 2,049 )

Operating cash flow provided (used) $ 130 $ ( 265 )

Operating cash flow provided $ 96 $ 158

Note 17 Other Comprehensive Income (Loss)

Components of other comprehensive income (loss) on a pre-tax and after-tax basis

($ in millions) Three months ended September 30,

Pre-tax Tax After-tax Pre-tax Tax After-tax

Unrealized net holding gains and losses arising during the period, net of related offsets $ 1,753 $ ( 388 ) $ 1,365 $ ( 974 ) $ 210 $ ( 764 )

reclassification adjustment of realized capital gains and losses 83 ( 17 ) 66 ( 121 ) 24 ( 97 )

Unrealized net capital gains and losses 1,670 ( 371 ) 1,299 ( 853 ) 186 ( 667 )

Unrealized foreign currency translation adjustments 18 ( 4 ) 14 ( 18 ) 4 ( 14 )

Unamortized pension and other postretirement prior service credit (1)

— — — ( 6 ) 1 ( 5 )

Discount rate for reserve for future policy benefits

( 46 ) 10 ( 36 ) 38 ( 8 ) 30

Other comprehensive income (loss) $ 1,642 $ ( 365 ) $ 1,277 $ ( 839 ) $ 183 $ ( 656 )

Nine months ended September 30,

($ in millions) Three months ended March 31,

Pre-tax Tax After-tax Pre-tax Tax After-tax

9 unchanged sentences

(1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses.

Included in shareholders' equity is $ 65 million of accumulated other comprehensive loss related to assets and liabilities held for sale as of September 30, 2024.

44 www.allstate.com

First Quarter 2025 Form 10-Q 41

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of

The Allstate Corporation

To the Shareholders and the Board of Directors of The Allstate Corporation

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated statement of financial position of The Allstate Corporation and subsidiaries (the “Company”) as of September 30, 2024, the related condensed consolidated statements of operations, comprehensive income (loss), and shareholders’ equity for the three-month and nine-month periods ended September 30, 2024 and 2023, and of cash flows for the nine-month periods ended September 30, 2024 and 2023, and the related notes (collectively referred to as the “interim financial information”).

We have reviewed the accompanying condensed consolidated statement of financial position of The Allstate Corporation and subsidiaries (the “Company”) as of March 31, 2025, the related condensed consolidated statements of operations, comprehensive income (loss), shareholders’ equity and cash flows for the three-month periods ended March 31, 2025 and 2024, and the related notes (collectively referred to as the “interim financial information”).

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Company as of December 31, 2024, and the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows for the year then ended (not presented herein);

and in our report dated February 21, 2024, we expressed an unqualified opinion on those consolidated financial statements and included an explanatory paragraph regarding a change in accounting principle for the measurement and disclosure of long-duration insurance contracts.

and in our report dated February 24, 2025, we expressed an unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived.

9 unchanged sentences

Chicago, Illinois

October 30, 2024

Third Quarter 2024 Form 10-Q 45

April 30, 2025

42 www.allstate.com

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements