6 unchanged sentences
The segments are consistent with the way in which the chief operating decision maker reviews financial performance and makes decisions about the allocation of resources.
+Added: Measuring segment profit or loss
+Added: The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments.
+Added: We use these measures in our evaluation of results of operations to analyze profitability.
+Added: Underwriting income is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), 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 accounting principles generally accepted in the United States of America (“GAAP”).
+Added: Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding:
+Added: • Net gains and losses on investments and derivatives
+Added: • Pension and other postretirement remeasurement gains and losses
+Added: • Amortization or impairment of purchased intangibles
+Added: • Gain or loss on disposition
+Added: • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
+Added: • Income tax expense or benefit on reconciling items
Macroeconomic impacts
Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S.
−Removed: government fiscal and monetary policies, the Russia/Ukraine and Israel/Hamas conflicts, supply chain disruptions and labor shortages.These factors should be considered when comparing the current period to prior periods.
+Added: government fiscal and monetary policies, conflict in the Middle East, the
+Added: Russia/Ukraine conflict, supply chain disruptions and labor shortages.
+Added: Tariffs Beginning on April 2, 2025, the U.S.
+Added: government announced additional tariffs on goods imported to the U.S.
+Added: These actions are expected to impact the results of our operations.
+Added: Depending on the severity of these actions, the following may impact operations:
+Added: • Higher new and used vehicle pricing, increasing claims costs in Allstate Protection, Protection Plans and Dealer Services
+Added: • Adverse impact on investment valuations on fixed income securities, equity securities and performance-based investments
+Added: • Declines in auto new issued applications due to lower car sales
+Added: • Reduced demand in Allstate Dealer Services due to lower new car sales
+Added: • Lower premiums written from reduced retail sales in Allstate Protection Plans
+Added: • Bad debt and credit allowance exposure
This is not inclusive of all potential impacts and should not be treated as such.
−Removed: Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2024 results.
Corporate strategy
8 unchanged sentences
• Increasing sophistication and investment in customer acquisition
−Removed: • Deploying new technology ecosystem
+Added: • Deploying new technology ecosystems
• Driving organizational transformation
−Removed: We are expanding protection services businesses utilizing enterprise capabilities and resources such as the Allstate brand, distribution, analytics, claims, investment expertise, talent and capital.
+Added: We are expanding Protection Services businesses by leveraging the Allstate brand, customer base and capabilities.
On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc.
−Removed: to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits business for approximately $2.0 billion in cash.
−Removed: 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.
−Removed: The transaction price less costs to sell exceeds the carrying value of net assets related to this transaction, resulting in an expected gain that will be recognized at closing of the transaction.
+Added: to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits (“EVB”) business for approximately $2.0 billion in cash.
+Added: First Quarter 2025 Form 10-Q 43
+Added: voluntary benefits business continues to be reported in the Allstate Health and Benefits segment, and the assets and liabilities of the business are classified as held for sale.
+Added: The transaction closed on April 1, 2025, and we expect to record a gain on the sale of approximately $625 million in the second quarter of 2025.
+Added: 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, adjusted for the closing balance sheet.
+Added: The group health business continues to be reported in the Allstate 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.
+Added: The transaction is expected
+Added: to close in 2025, subject to regulatory approvals and other customary closing conditions.
+Added: The transaction price for the group health business, less costs to sell, exceeds the carrying value of net assets related to this transaction, resulting in an expected gain of approximately $450 million that will be recognized at closing of the transaction.
The ultimate amount of 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.
−Removed: The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.
−Removed: We continue to pursue the sale of the group health and individual health businesses but have not completed the sale process.
−Removed: Once the criteria for these businesses to be classified as held for sale is met, the entire Health and Benefits segment will be reported in discontinued operations.
−Removed: 46 www.allstate.com
−Removed: Measuring segment profit or loss
−Removed: The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments.
−Removed: We use these measures in our evaluation of results of operations to analyze profitability.
−Removed: Underwriting income is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), 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 accounting principles generally accepted in the United States of America (“GAAP”).
−Removed: Adjusted net income is net income (loss) applicable to common shareholders, excluding:
−Removed: • Net gains and losses on investments and derivatives
−Removed: • Pension and other postretirement remeasurement gains and losses
−Removed: • Amortization or impairment of purchased intangibles
−Removed: • Gain or loss on disposition
−Removed: • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
−Removed: • Income tax expense or benefit on reconciling items
+Added: See Note 3 of the condensed consolidated financial statements for further information on the employer voluntary benefits and group health dispositions.
Consolidated net income (loss) applicable to common shareholders
($ in millions)
−Removed: Consolidated net income applicable to common shareholders was $1.16 billion and $2.65 billion in the third quarter and first nine months of 2024, respectively, compared to a loss of $41 million and $1.78 billion in the third quarter and first nine months of 2023, respectively, primarily due to improved underwriting results from increased earned premium and improved loss trends.
−Removed: For the twelve months ended September 30, 2024, return on Allstate common shareholders’ equity was 26.1%.
+Added: Consolidated net income applicable to common shareholders decreased 52.4% to $566 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher catastrophe and realized capital losses.
Total revenues
($ in millions)
−Removed: Total revenues increased 14.7% to $16.63 billion and increased 12.6% to $47.60 billion in the third quarter and first nine months of 2024, respectively, compared to the same periods of 2023 due to premium rate increases and higher realized capital gains on investments compared to the prior year.
+Added: Total revenues increased 7.8% to $16.45 billion in the first quarter of 2025 compared to the first quarter of 2024, primarily due to premium rate increases and higher homeowners insurance policies in force.
Net investment income
($ in millions)
−Removed: Net investment income increased $94 million to $783 million in the third quarter of 2024 primarily due to higher market-based investment results, partially offset by lower performance-based investment results.
−Removed: Net investment income increased $385 million to $2.26 billion in the first nine months of 2024 compared to the same period of 2023, primarily due to higher market-based investment results.
−Removed: Market-based results continue to benefit from portfolio repositioning into higher yielding fixed income securities and higher investment balances.
−Removed: Third Quarter 2024 Form 10-Q 47
+Added: Net investment income increased $90 million to $854 million in the first quarter of 2025, due to higher market-based investment results.
Financial highlights
−Removed: Investments totaled $73.60 billion as of September 30, 2024, increasing from $66.68 billion as of December 31, 2023.
−Removed: Allstate shareholders’ equity was $20.88 billion as of September 30, 2024, increasing from $17.77 billion as of December 31, 2023, primarily due to net income and unrealized net capital gains, partially offset by dividends to shareholders.
−Removed: Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common
−Removed: shares outstanding) was $70.35, an increase of 47.2% from $47.79 as of September 30, 2023, and an increase of 18.5% from $59.39 as of December 31, 2023.
−Removed: Return on average Allstate common shareholders’ equity for the twelve months ended September 30, 2024 was 26.1%, an increase of 40.8 points from (14.7)% for the twelve months ended September 30, 2023.
−Removed: The increase was primarily due to net income applicable to common shareholders for the trailing twelve-month period ending September 30, 2024 compared to a net loss for the twelve-month period ending September 30, 2023.
+Added: Investments totaled $74.05 billion as of March 31, 2025, increasing from $72.61 billion as of December 31, 2024.
+Added: Allstate shareholders’ equity was $22.06 billion as of March 31, 2025, increasing from $21.44 billion as of December 31, 2024, primarily due to net income and lower unrealized net capital losses on investments, partially offset by dividends to shareholders.
+Added: 44 www.allstate.com
+Added: Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $74.61 as of March 31, 2025, an increase of 19.8% from $62.27 as of March 31, 2024, and an increase of 3.1% from $72.35 as of December 31, 2024.
+Added: Return on average Allstate common shareholders’ equity for the twelve months ended March 31, 2025, was 21.4%, an increase of 13.8 points from 7.6% for the twelve months ended March 31, 2024.
+Added: The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending March 31, 2025.
Summarized consolidated financial results
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
13 unchanged sentences
Total costs and expenses (15,733) (13,795)
−Removed: Income (loss) from operations before income tax expense 1,418 (21) 3,312 (2,175)
−Removed: Income tax (expense) benefit (254) 17 (603) 475
−Removed: Net income (loss) 1,164 (4) 2,709 (1,700)
−Removed: Net (loss) income attributable to noncontrolling interest (26) 1 (30) (23)
−Removed: Net income (loss) attributable to Allstate 1,190 (5) 2,739 (1,677)
+Added: Income from operations before income tax expense 719 1,464
+Added: Income tax expense (123) (266)
+Added: Net income 596 1,198
+Added: Net income (loss) attributable to noncontrolling interest 1 (20)
+Added: Net income attributable to Allstate 595 1,218
Preferred stock dividends (29) (29)
−Removed: Net income (loss) applicable to common shareholders $ 1,161 $ (41) $ 2,651 $ (1,776)
+Added: Net income applicable to common shareholders $ 566 $ 1,189
Segment highlights
−Removed: Allstate Protection underwriting income was $555 million in the third quarter of 2024 compared to an underwriting loss of $331 million in the third quarter of 2023 due to increased premiums earned and lower non-catastrophe losses, partially offset by higher catastrophe losses and advertising costs.
−Removed: Underwriting income totaled $1.32 billion in the first nine months of 2024 compared to an underwriting loss of $3.42 billion in the first nine months of 2023, primarily due to increased premiums earned and lower losses, partially offset by higher advertising costs.
−Removed: As auto profitability improves, we are increasing advertising, expanding customer access and delivering personalized affordable, simple and connected consumer offerings to support growth.
−Removed: Catastrophe losses were $1.70 billion and $4.55 billion in the third quarter and first nine months of 2024, respectively, compared to $1.18 billion and $5.57 billion in the third quarter and first nine months of 2023, respectively.
−Removed: Premiums written increased 10.5% to $14.71 billion and increased 11.8% to $42.17 billion in the third quarter and first nine months of 2024, respectively, compared to the same periods of 2023, reflecting higher premiums in both Allstate and National General brands.
−Removed: 48 www.allstate.com
−Removed: Protection Services adjusted net income was $58 million in the third quarter of 2024 compared to $27 million in the third quarter of 2023, primarily due to revenue growth and improved claim frequency at Allstate Protection Plans.
−Removed: Adjusted net income was $167 million the first nine months of 2024 compared to $102 million in the first nine months of 2023, primarily due to growth at Allstate Protection Plans and improved claim severity at Allstate Roadside.
−Removed: Premiums and other revenue increased 16.3% to $749 million and increased 13.6% to $2.16 billion in the third quarter and first nine months of 2024, respectively, compared to the same periods of 2023, primarily due to Allstate Protection Plans.
−Removed: Allstate Health and Benefits adjusted net income was $37 million in the third quarter of 2024 compared to adjusted net income of $69 million in the third quarter of 2023, and adjusted net income was $151 million in the first nine months of 2024 compared to $182 million in the first nine months of 2023.
−Removed: The decline in adjusted net income from the third quarter of 2023 was primarily due to increased benefit utilization across all lines of business.
−Removed: Premiums and contract charges increased 5.2% to $487 million in the third quarter of 2024 and increased 4.4% to $1.44 billion in the first nine months of 2024 compared to the same periods of 2023, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.
−Removed: Third Quarter 2024 Form 10-Q 49
+Added: Allstate Protection underwriting income was $364 million in the first quarter of 2025 compared to $903 million in the first quarter of 2024, due to higher catastrophe losses, partially offset by increased premiums earned.
+Added: Catastrophe losses were $2.20 billion in the first quarter of 2025 compared to $731 million in the first quarter of 2024.
+Added: Premiums written increased 8.5% to $14.30 billion in the first quarter of 2025 compared to the same period of 2024, reflecting higher premiums in auto and homeowners insurance and higher homeowners insurance policies in force.
+Added: Protection Services adjusted net income was $55 million in the first quarter of 2025 compared to $54 million in the first quarter of 2024, primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses due to growth at Arity and higher loss costs at Dealer Services.
+Added: Premiums and other revenue increased 14.6% to $799 million in the first quarter of 2025 compared to the same period of 2024, primarily due to growth at Allstate Protection Plans and higher lead generation revenue at Arity.
+Added: Allstate Health and Benefits adjusted net income was $30 million in the first quarter of 2025 compared to adjusted net income of $56 million in the first quarter of 2024.
+Added: The decline was primarily due to increased benefit utilization in group health and individual health, partially offset by lower benefit utilization and expenses in employer voluntary benefits.
+Added: Premiums and contract charges increased 1.9% to $487 million in the first quarter of 2025 compared to the same period of 2024, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.
+Added: First Quarter 2025 Form 10-Q 45
Property-Liability Operations
25 unchanged sentences
A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy.
−Removed: Commercial lines PIF counts for shared economy agreements reflected contracts that covered multiple rather than individual drivers.
Lender-placed policies are excluded from policy counts because relationships are with the lenders.
5 unchanged sentences
Average premiums represent the appropriate policy term for each line.
−Removed: • Renewal ratio:
−Removed: renewal policy item counts issued during the period, based on contract effective dates, divided by the total policy item counts issued generally 6 months prior for auto or 12 months prior for homeowners.
• Implemented rate changes:
represents the impact in the locations (U.S.
−Removed: states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total brand prior year-end premiums written.
+Added: states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written.
46 www.allstate.com
1 unchanged sentence
Underwriting results
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions, except ratios) 2025 2024
6 unchanged sentences
Restructuring and related charges (1)
−Removed: (23) (74) (45) (121)
Amortization of purchased intangibles (46) (51)
−Removed: Underwriting income (loss) $ 495 $ (414) $ 1,248 $ (3,509)
+Added: Underwriting income $ 360 $ 898
Catastrophe losses
1 unchanged sentence
Catastrophe reserve reestimates (2)
−Removed: (14) 17 (314) 6
Total catastrophe losses $ 2,202 $ 731
Non-catastrophe reserve reestimates (2)
−Removed: $ 45 $ 166 $ (8) $ 375
Prior year reserve reestimates (2)
−Removed: 31 183 (322) 381
GAAP operating ratios
1 unchanged sentence
Expense ratio (3)
−Removed: 21.5 21.2 21.1 20.9
Combined ratio 97.4 93.0
3 unchanged sentences
Effect of restructuring and related charges on combined ratio (1)
−Removed: 0.1 0.6 0.1 0.3
Effect of amortization of purchased intangibles on combined ratio 0.3 0.3
Effect of Run-off Property-Liability business on combined ratio — —
−Removed: (1) Restructuring and related charges for the third quarter and first nine months of 2024 primarily relate to the organizational transformation component of the Transformative Growth plan.
+Added: (1) Restructuring and related charges for the first quarter of 2025 primarily relate to streamlining the organization and outsourcing certain aspects of operations.
See Note 13 of the condensed consolidated financial statements for additional details.
1 unchanged sentence
(3) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.
−Removed: Third Quarter 2024 Form 10-Q 51
+Added: First Quarter 2025 Form 10-Q 47
Segment Results Allstate Protection
1 unchanged sentence
Underwriting results
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
7 unchanged sentences
Amortization of purchased intangibles (46) (51)
−Removed: Underwriting income (loss) $ 555 $ (331) $ 1,316 $ (3,421)
+Added: Underwriting income $ 364 $ 903
Catastrophe losses $ 2,202 $ 731
−Removed: Underwriting income was $555 million in the third quarter of 2024 compared to underwriting loss of $331 million in the third quarter of 2023 due to increased premiums earned and lower non-catastrophe losses, partially offset by higher catastrophe losses and advertising costs.
−Removed: Underwriting income was $1.32 billion in the first nine months of 2024 compared to underwriting loss of $3.42 billion in the first nine months of 2023 due to increased premiums earned and lower losses, partially offset by higher advertising costs.
−Removed: As auto profitability improves, we are increasing advertising, expanding customer access and delivering personalized affordable, simple and connected consumer offerings to support growth.
+Added: Underwriting income decreased 59.7% or $539 million in the first quarter of 2025 compared to the first quarter of 2024 due to higher catastrophe losses, partially offset by increased premiums earned.
Change in underwriting results from prior year period - three months ended
($ in millions)
−Removed: Change in underwriting results from prior year period - nine months ended
−Removed: ($ in millions)
−Removed: 52 www.allstate.com
−Removed: Allstate Protection Segment Results
−Removed: Underwriting income (loss) by line of business
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Underwriting income (loss)
+Added: Three months ended March 31,
($ in millions) 2025 2024
−Removed: $ 486 $ (178) $ 1,207 $ (1,202)
−Removed: 60 (131) 249 (1,972)
Other personal lines
−Removed: (18) 6 (66) (153)
Commercial lines
−Removed: (16) (60) (224) (181)
Other business lines (1)
1 unchanged sentence
Total $ 364 $ 903
−Removed: (1) Other business lines represents commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products, and lender-placed products.
−Removed: Premium measures and statistics include PIF, new issued applications, average premiums and renewal ratio to analyze our premium trends.
+Added: (1) Represents commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products and lender-placed products.
+Added: 48 www.allstate.com
+Added: Allstate Protection Segment Results
+Added: Premium measures and statistics include PIF, new issued applications and average premiums to analyze our premium trends.
Premiums written is the amount of premiums charged for policies issued during a reporting period.
1 unchanged sentence
The portion of premiums written applicable to the unexpired term of the policies is recorded as unearned premiums on our Condensed Consolidated Statements of Financial Position.
−Removed: Premiums written by line of business
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Premiums written
+Added: Three months ended March 31,
($ in millions) 2025 2024
5 unchanged sentences
Total premiums written $ 14,297 $ 13,183
−Removed: Premiums earned by line of business
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Premiums earned
+Added: Three months ended March 31,
($ in millions) 2025 2024
6 unchanged sentences
Reconciliation of premiums written to premiums earned
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
1 unchanged sentence
(Increase) decrease in unearned premiums
−Removed: (1,075) (1,082) (2,233) (1,962)
−Removed: Other 62 48 (3) 81
Total premiums earned $ 14,027 $ 12,900
−Removed: Policies in force by line of business
−Removed: As of September 30,
+Added: Policies in force
+Added: As of March 31,
(In thousands)
4 unchanged sentences
Total 37,712 37,693
−Removed: Third Quarter 2024 Form 10-Q 53
−Removed: Segment Results Allstate Protection
−Removed: Auto insurance premiums written increased 8.8% or $769 million in the third quarter of 2024 compared to the third quarter of 2023 and 11.0% or $2.79 billion in the first nine months of 2024 compared to the first nine months of 2023, primarily due to the following factors:
−Removed: • Increased average premiums driven by rate increases.
−Removed: In the nine months ended September 30, 2024:
−Removed: – Rate increases of 9.1% were taken for Allstate brand in 49 locations, resulting in total estimated Allstate brand insurance premium impact of 6.3%
−Removed: – Rate increases of 10.1% were taken for National General brand in 44 locations, resulting in total estimated National General brand insurance premium impact of 7.8%
−Removed: • In 2024, we have removed underwriting restrictions in areas that represent the majority of Allstate brand countrywide premiums, which is expected to increase premiums written and PIF.
−Removed: In locations not
−Removed: achieving acceptable returns, we expect to continue to pursue targeted rate increases for both Allstate and National General brands.
−Removed: In states where we are achieving acceptable returns, we plan to take rates that keep pace with increasing costs.
−Removed: See Note 8 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association
−Removed: • PIF decreased 1.5% or 378 thousand to 24,998 thousand as of September 30, 2024 compared to September 30, 2023
−Removed: • Renewal ratio for Allstate brand decreased 0.2 points and increased 0.1 point in the third quarter and the first nine months of 2024, respectively, compared to the third quarter and first nine months of 2023
+Added: Auto insurance premiums written increased 5.2% or $491 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the following factors:
+Added: • Increased Allstate brand average premiums driven by rate increases.
+Added: In the three months ended March 31, 2025, rate increases of 4.3% were implemented in 32 locations, resulting in total insurance premium impact of 1.4%
+Added: • In locations not achieving acceptable returns, we expect to continue to pursue targeted rate
+Added: In states where we are achieving acceptable returns, we plan to implement rates that keep pace with increasing costs
+Added: • PIF decreased 0.4% or 107 thousand to 25,100 thousand as of March 31, 2025 compared to March 31, 2024
• Increased new issued applications in all channels
+Added: First Quarter 2025 Form 10-Q 49
+Added: Segment Results Allstate Protection
Auto premium measures and statistics
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three months ended March 31,
+Added: 2025 2024 Change
New issued applications (in thousands)
Allstate Protection by channel
−Removed: Exclusive agency channel 675 582 16.0 % 1,908 1,745 9.3 %
−Removed: Direct channel 620 398 55.8 1,668 1,276 30.7
−Removed: Independent agency channel 597 525 13.7 1,714 1,496 14.6
+Added: Exclusive agency
+Added: 748 605 23.6 %
+Added: Independent agency
Total new issued applications 2,191 1,670 31.2 %
Allstate brand average premium $ 853 $ 823 3.6 %
−Removed: Allstate brand renewal ratio (%) 84.7 84.9 (0.2) 85.5 85.4 0.1
−Removed: Homeowners insurance premiums written increased 15.5% or $548 million in the third quarter of 2024 compared to the third quarter of 2023 and increased 14.3% or $1.35 billion in the first nine months of 2024 compared to the first nine months of 2023, primarily due to the following factors:
−Removed: • Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth
−Removed: • In the nine months ended September 30, 2024, rate increases of 14.0% were taken for Allstate brand in 34 locations, resulting in total estimated Allstate brand insurance premium impact of 7.6%
−Removed: • In the nine months ended September 30, 2024, rate increases of 14.5% were taken for National General brand in 30 locations, resulting in total estimated National General brand insurance premium impact of 6.1%
−Removed: • Increased new issued applications in the exclusive agency and direct channels
−Removed: • Renewal ratio for Allstate brand increased 0.4 points and 0.7 points in the third quarter and the
−Removed: first nine months of 2024, respectively, compared to the third quarter and first nine months of 2023
−Removed: Policy growth is being reduced in states and lines of business that are underperforming.
−Removed: We are no longer writing new homeowners business in California, New Jersey and Florida, and are non-renewing certain policies in Florida.
+Added: Homeowners insurance premiums written increased 20.1% or $579 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the following factors:
+Added: • Higher Allstate brand average premiums from implemented rate increases and inflation in insured home replacement costs and other aging factor adjustments, combined with policies in force growth
+Added: • In the three months ended March 31, 2025, rate increases of 5.9% were implemented in 19 locations, resulting in total estimated insurance premium impact of 1.5%, excluding the impact of changes in insured home replacement costs
+Added: • Increased new issued applications in direct and exclusive agency channels
+Added: We are not writing new homeowners business in California and Florida.
+Added: We are also non-renewing certain policies in Florida.
We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.
−Removed: National General policy growth may be negatively impacted to improve underwriting margins to targeted levels through underwriting and rate actions.
−Removed: See Note 8 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association.
−Removed: 54 www.allstate.com
−Removed: Allstate Protection Segment Results
+Added: National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions.
Homeowners premium measures and statistics
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 Change 2024 2023 Change
+Added: Three months ended March 31,
+Added: 2025 2024 Change
New issued applications (in thousands)
Allstate Protection by channel
−Removed: Exclusive agency channel 260 211 23.2 % 719 609 18.1 %
−Removed: Direct channel 39 22 77.3 96 60 60.0
−Removed: Independent agency channel 63 69 (8.7) 172 178 (3.4)
+Added: Exclusive agency
+Added: 232 218 6.4 %
+Added: Independent agency
Total new issued applications 320 291 10.0 %
Allstate brand average premium $ 2,210 $ 1,912 15.6 %
−Removed: Allstate brand renewal ratio (%) 87.2 86.8 0.4 87.2 86.5 0.7
−Removed: Other personal lines premiums written increased 20.9% or $141 million in the third quarter of 2024 compared to the third quarter of 2023 and increased 22.3% or $423 million in the first nine months of 2024 compared to the first nine months of 2023 primarily due to increases in involuntary auto policies purchased from other carriers by National General and landlords policies for Allstate brand.
−Removed: We are no longer writing new condominium business in California and Florida, and we are non-renewing certain policies in Florida, which may negatively impact premiums.
−Removed: Commercial lines premiums written decreased 25.7% or $36 million in the third quarter of 2024 compared to the third quarter of 2023 and decreased 27.5% or $156 million in the first nine months of 2024 compared to the first nine months of 2023 primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew certain policies.
−Removed: We are committed to offering comprehensive
−Removed: commercial products to customers through our exclusive agency, independent agency and direct channels, with solutions offered by the National General brand, NEXT Insurance and other brokered solutions.
−Removed: Other business lines premiums written decreased 9.8% or $19 million in the third quarter of 2024 compared to the third quarter of 2023 primarily driven by the loss of certain direct lender clients.
−Removed: Other business lines premiums written increased 12.3% or $51 million in the first nine months of 2024 compared to the first nine months of 2023 due to growth in business placed by agents.
+Added: Other personal lines premiums written increased 10.5% or $69 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers.
+Added: We are not writing new condominium business in California and Florida, and we are non-renewing certain policies in Florida.
+Added: Commercial lines premiums written decreased 40.1% or $63 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew policies.
+Added: committed to offering comprehensive commercial products to customers through our exclusive agency, independent agency and direct channels, with solutions offered by the National General brand, NEXT Insurance and other brokered solutions.
+Added: Other business lines premiums written increased 28.1% or $38 million in the first quarter of 2025 compared to the first quarter of 2024 due to growth in the lender-placed business.
GAAP operating ratios include loss ratio, expense ratio and combined ratio to analyze our profitability trends.
−Removed: Frequency and severity statistics are used to describe the trends in loss costs.
−Removed: Combined ratios by line of business
+Added: Frequency and severity changes are used to describe the trends in loss costs.
+Added: 50 www.allstate.com
+Added: Allstate Protection Segment Results
+Added: Combined ratios
Loss ratio Expense ratio (2)
1 unchanged sentence
2025 2024 2025 2024 2025 2024
−Removed: Three months ended September 30,
−Removed: 71.9 81.4 22.9 20.7 94.8 102.1
−Removed: Homeowners 76.3 82.4 21.9 22.0 98.2 104.4
−Removed: Other personal lines (1)
−Removed: 96.2 78.6 6.3 20.4 102.5 99.0
−Removed: Commercial lines 84.8 102.0 25.8 28.9 110.6 130.9
−Removed: Other business lines 72.4 49.3 1.3 (3)
+Added: Three months ended March 31,
69.3 75.4 22.0 20.6 91.3 96.0
−Removed: Total 74.4 81.5 21.5 21.2 95.9 102.7
−Removed: Impact of amortization of purchased intangibles 0.4 0.5 0.4 0.5
−Removed: Impact of restructuring and related charges 0.1 0.6 0.1 0.6
−Removed: Nine months ended September 30,
−Removed: Auto 73.8 84.2 21.8 20.7 95.6 104.9
Homeowners 91.8 60.3 20.5 21.8 112.3 82.1
6 unchanged sentences
Impact of restructuring and related charges 0.1 0.1 0.1 0.1
−Removed: (1) Expense ratio includes other revenue of $97 million and $161 million for the three and nine months ended September 30, 2024, respectively, compared to $16 million and $33 million for the three and nine months ended September 30, 2023, respectively, for fees on involuntary auto policies.
+Added: (1) Expense ratio includes other revenue of $44 million for the three months ended March 31, 2025, compared to $38 million for the three months ended March 31, 2024, for fees on auto assigned risk policies.
(2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.
−Removed: (3) Includes anticipated return commissions on lender-placed business due to increased losses.
−Removed: Third Quarter 2024 Form 10-Q 55
−Removed: Segment Results Allstate Protection
−Removed: Loss ratios by line of business
−Removed: Loss ratio Effect of catastrophe losses (1)
+Added: Loss ratio Effect of catastrophe
Effect of prior year reserve reestimates Effect of catastrophe losses included in prior year reserve reestimates
2025 2024 2025 2024 2025 2024 2025 2024
−Removed: Three months ended September 30,
−Removed: Auto 71.9 81.4 3.0 2.6 (0.7) 0.4 (0.1) 0.1
−Removed: Homeowners 76.3 82.4 36.2 29.6 (0.4) 2.1 — 0.6
−Removed: Other personal lines 96.2 78.6 23.8 9.7 7.1 (2.3) (0.4) (1.8)
−Removed: Commercial lines 84.8 102.0 5.3 5.2 0.7 9.8 — 3.1
−Removed: Other business lines 72.4 49.3 9.2 13.0 (1.9) 0.7 — —
−Removed: Total 74.4 81.5 12.4 9.6 (0.2) 0.8 (0.1) 0.1
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
Auto 69.3 75.4 2.2 1.2 (2.6) (0.8) (0.1) (0.1)
−Removed: Homeowners 75.9 101.8 34.7 52.1 (3.9) 1.6 (2.8) 0.7
+Added: 91.8 60.3 49.9 (2)
+Added: 17.6 (0.2) (6.0) — (4.7)
Other personal lines 91.2 85.6 16.7 9.3 6.2 7.9 (1.0) (0.4)
2 unchanged sentences
Total 76.0 72.4 15.7 5.7 (1.8) (1.2) (0.1) (1.3)
−Removed: (1) The ten-year average effect of catastrophe losses on the total combined ratio was 9.0 points and 9.9 points in the third quarter and first nine months of 2024, respectively.
−Removed: Auto underwriting quarterly results
−Removed: ($ in millions, except ratios) Q3
−Removed: Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
−Removed: Underwriting income (loss) $ 486 $ 370 $ 351 $ 93 $ (178) $ (678) $ (346) $ (974) $ (1,315) $ (578) $ (147)
−Removed: Loss ratio 71.9 74.2 75.4 78.5 81.4 87.9 83.4 90.6 95.3 84.9 77.6
−Removed: Effect of prior year non-catastrophe reserve reestimates on combined ratio
−Removed: (0.6) (1.9) (0.7) 1.7 0.3 1.4 (0.1) 2.3 8.5 3.8 2.1
−Removed: Frequency and severity are influenced by:
−Removed: • Supply chain disruptions and labor shortages
−Removed: • Mix of repairable losses and total losses
−Removed: • Value of total losses due to changes in used car prices
−Removed: • Changes in medical inflation and consumption
−Removed: • Number of claims with attorney representation
−Removed: • Labor and part cost increases
−Removed: • Changes in commuting activity
−Removed: • Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types
−Removed: • Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods
−Removed: The quarterly auto loss ratio has been more variable due to these and additional factors discussed below.
−Removed: Auto loss ratio decreased 9.5 and 10.4 points in the third quarter and first nine months of 2024, respectively, compared to the same periods of 2023 driven by increased earned premiums and lower non-catastrophe losses.
−Removed: Estimated report year 2024 incurred claim severity for Allstate brand increased compared to report year 2023 for major coverages due to higher repair costs, a higher mix of total losses, an
−Removed: increase in claims with attorney representation, higher medical consumption, and inflation.
+Added: (1) The ten-year average effect of first-quarter catastrophe losses on the total combined ratio was 8.6 points.
+Added: (2) The ten-year average effect of first-quarter homeowner catastrophe losses on the total combined ratio was 29.3 points.
+Added: Auto loss ratio decreased 6.1 points in the first quarter of 2025, compared to the same period of 2024 driven by increased earned premiums and lower non-catastrophe losses.
+Added: Estimated report year 2025 incurred claim severity for Allstate increased compared to report year 2024 for major coverages due to higher repair costs, medical consumption and attorney representation.
Gross claim frequency decreased relative to the prior year.
−Removed: We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections, accelerating resolution of bodily injury claims, and negotiating improved vendor services and parts agreements.
−Removed: Homeowners loss ratio decreased 6.1 points in the third quarter of 2024 compared to the same period of 2023 primarily due to increased premiums earned and lower non-catastrophe losses.
−Removed: Homeowners loss ratio decreased 25.9 points in the first nine months of 2024 compared to the same period of 2023 primarily due to lower losses and increased premiums earned.
−Removed: Gross claim frequency decreased in the third quarter and first nine months of 2024 compared to the same periods of 2023 due to fewer claims reported related to water and wind/hail perils.
−Removed: Paid claim severity decreased in the third quarter of 2024 compared to the same period of 2023 due to lower losses from water and wind/hail perils.
−Removed: Paid claim severity increased in the first nine months of 2024 compared to the same period of 2023 due to inflationary loss cost pressure driven by increases in labor and materials costs.
+Added: We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections and accelerating resolution of bodily injury claims.
+Added: Homeowners loss ratio increased 31.5 points in the first quarter of 2025 compared to the same period of 2024 primarily due to higher catastrophe losses, partially offset by increased premiums earned.
+Added: Gross claim frequency, excluding catastrophes, decreased in the first quarter of 2025 compared to the same period of 2024.
+Added: Paid claim severity, excluding catastrophes, increased in the first quarter of 2025 compared to the same period of 2024 due to an increase in freeze related claims and larger losses within the fire peril.
Homeowners paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the quarter.
−Removed: 56 www.allstate.com
−Removed: Allstate Protection Segment Results
−Removed: Other personal lines loss ratio increased 17.6 and 3.1 points in the third quarter and first nine months of 2024, respectively, compared to the same periods of 2023 primarily due to higher losses and unfavorable reserve development, partially offset by increased premiums earned.
−Removed: Commercial lines loss ratio decreased 17.2 points in the third quarter of 2024 compared to the same period of 2023, primarily due to lower non-catastrophe losses, partially offset by premiums earned decreasing as a result of the strategic decision for the Allstate brand to stop writing new business and non-renew certain policies.
−Removed: C ommercial lines loss ratio increased 16.9 points in the first nine months of 2024 compared to the same period of 2023, primarily due to Allstate brand strategy changes and unfavorable reserve development related to the shared economy business, partially offset by lower non-catastrophe losses.
−Removed: Other business lines loss ratio increased 23.1 and 7.6 points in the third quarter and first nine months of 2024, respectively, compared to the same periods of 2023, primarily due to higher losses.
−Removed: Catastrophe losses increased $522 million to $1.70 billion in the third quarter of 2024 compared to the third quarter of 2023 due to larger losses per event, primarily from hurricanes, including $630 million related to Hurricane Helene and $220 million related to Hurricane Beryl.
−Removed: Catastrophe losses decreased $1.01 billion to $4.55 billion in the first nine months of 2024 compared to the first nine months of 2023, primarily due to lower losses per event for wind and hail events.
−Removed: We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event.
−Removed: Catastrophes are caused by various natural events
−Removed: including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.
+Added: Other personal lines loss ratio increased 5.6 points in the first quarter of 2025, compared to the same
+Added: period of 2024 primarily due to higher catastrophe losses.
+Added: Commercial lines loss ratio decreased 57.0 points in the first quarter of 2025 compared to the same period of 2024, primarily due to lower losses, partially offset by a decrease in premiums earned driven by the strategic decision to exit an unprofitable business.
+Added: Other business lines loss ratio increased 5.4 points in the first quarter of 2025, compared to the same period of 2024, primarily due to higher catastrophe losses.
+Added: Catastrophe losses increased $1.47 billion to $2.20 billion in the first quarter of 2025 compared to the first quarter of 2024 due to $1.06 billion from the California wildfires, and larger losses per event from wind/hail events in March.
+Added: The catastrophe losses in the first quarter of 2025 are net of $1.13 billion of expected reinsurance recoveries.
+Added: The California wildfire event includes reinsurance reinstatement premiums and estimated California FAIR Plan assessments.
+Added: We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring
+Added: First Quarter 2025 Form 10-Q 51
+Added: Segment Results Allstate Protection
+Added: within a certain amount of time following the event.
+Added: Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.
We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents.
3 unchanged sentences
The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process.
−Removed: Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting their ability to inspect losses, determining whether losses are covered by our homeowners policy (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.
+Added: Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting
+Added: their ability to inspect losses, determining whether losses are covered by our homeowners policy (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.
In these situations, we may need to adapt our practices to accommodate these circumstances in order to determine a best estimate of our losses from a catastrophe.
−Removed: Over time, we have limited our aggregate insurance exposure to catastrophe losses in certain regions of the country that are subject to high levels of natural catastrophes by managing policies in force, utilizing reinsurance and participating in various state facilities.
+Added: Over time, we have limited our aggregate insurance exposure to catastrophe losses in certain regions of the country that are subject to high levels of natural catastrophes by managing coverage, number of policies in force, utilizing reinsurance and participating in various state facilities.
Catastrophe losses by the type of event
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: ($ in millions) Number of events 2024 Number of events 2023 Number of events 2024 Number of events 2023
−Removed: Hurricanes/tropical storms 5 $ 953 3 $ 76 5 $ 953 3 $ 76
−Removed: Tornadoes — — — — 1 57 3 133
+Added: Three months ended March 31,
+Added: ($ in millions) Number of events 2025 Number of events 2024
Wind/hail 14 $ 1,209 18 $ 726
2 unchanged sentences
Prior year reserve reestimates (1)
−Removed: Prior quarter reserve reestimates 70 (214) — —
+Added: Prior year aggregate reinsurance recoveries
+Added: Current year aggregate reinsurance recoveries
Total catastrophe losses 16 $ 2,202 (2)
−Removed: Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide our shareholders with an acceptable return on the risks assumed in our personal lines business, reduce earnings variability, and provide protection to our customers.
−Removed: Our current catastrophe reinsurance program supports our risk and return framework which
−Removed: incorporates our robust economic capital model and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires and adjusts based on premium and insured value growth.
−Removed: As of September 30, 2024, the modeled 1-in-100 probable maximum loss for hurricane, wildfire and earthquake perils is approximately $2.9 billion, net of reinsurance.
−Removed: We continually review our aggregate risk appetite and
−Removed: Third Quarter 2024 Form 10-Q 57
−Removed: Segment Results Allstate Protection
−Removed: the cost and availability of reinsurance to optimize the risk and return profile of this exposure.
−Removed: The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the third quarter and first nine months of 2024 was $298 million and $880 million, respectively, compared to $268 million and $729 million in the third quarter and first nine months of 2023, respectively.
+Added: (1) Includes reinsurance recoveries.
+Added: (2) Gross losses before reinsurance recoverables and reinstatement premiums were $3.33 billion.
+Added: Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide our shareholders with an acceptable return on the risks assumed in our property business, reduce earnings variability, and provide protection to our customers.
+Added: Our current catastrophe reinsurance program supports our risk and return framework which incorporates our robust economic capital model and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires.
+Added: As of March 31, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.1 billion, net of reinsurance.
+Added: We continually review our aggregate risk appetite and the cost and availability of reinsurance to optimize the risk and return profile of this exposure.
+Added: We have placed coverage related to our 2025-2026 Nationwide Excess Catastrophe Reinsurance Program (the “Nationwide Program”), the Kentucky Earthquake Catastrophe Reinsurance Contract and the Canada Catastrophe Excess Reinsurance Contract.
+Added: The Florida Excess Catastrophe Reinsurance Program and the National General Lender Services Program will be completed in the second quarter of 2025.
+Added: We are continuing to evaluate complimentary coverage that
+Added: provides aggregate protection and reduces earnings volatility.
+Added: Similar to our 2024 program, our 2025 program includes coverage for losses to personal lines property, personal lines automobile, commercial lines property or commercial lines automobile arising out of multiple perils, in addition to hurricanes, earthquakes and wildfires.
+Added: The Nationwide Program provides per occurrence coverage up to $9.50 billion of loss less a $1.00 billion retention and is subject to the percentage of reinsurance placed in each of its agreements.
+Added: It also provides aggregate coverage up to $500 million for catastrophe loss events in excess of a deductible of $50 million per event with $66 million of limit utilized by expected recoveries.
+Added: Property business in the state of Florida is excluded from this program.
+Added: Separate reinsurance agreements address the distinct needs of separately capitalized legal entities.
+Added: The Nationwide Program includes reinsurance agreements with both the traditional and insurance-linked securities (“ILS”) markets as described below:
+Added: • Core traditional market multi-year and per occurrence agreements provide limits totaling $5.87 billion for catastrophe losses arising out of multiple perils and are comprised of the following:
+Added: 52 www.allstate.com
+Added: Allstate Protection Segment Results
+Added: – Contracts providing combined $3.25 billion of placed limits exhausting at $4.25 billion, with one annual reinstatement.
+Added: – Three multi-year contracts providing combined $336 million of placed limits with two of the contracts providing one reinstatement of limits over each contract’s term.
+Added: – Four single-year contracts providing combined $2.28 billion of placed limits filling capacity around the multi-year and ILS placements, with two contracts providing one reinstatement of limits.
+Added: • ILS placements provide $2.70 billion of placed limits, with no reinstatement of limits, and are comprised of the following:
+Added: – Ten contracts providing occurrence coverage of $2.20 billion of placed limits, reinsuring losses in all states except Florida caused by named storms, earthquakes and fire following earthquakes, severe weather, wildfires, and other naturally occurring or man-made events determined to be a catastrophe by the Company.
+Added: – One contract providing occurrence and aggregate coverage of $175 million of placed limits, also provide that for each annual period beginning April 1, Allstate declared catastrophes to personal lines property and automobile business can be aggregated to erode the aggregate retention and qualify for coverage under the aggregate limits.
+Added: Recoveries are limited to the ultimate net loss from the reinsured event.
+Added: – Two contracts providing aggregate coverage of $325 million of placed limits, with $66 million of limit utilized by expected recoveries.
+Added: Kentucky Earthquake Excess Catastrophe Reinsurance Contract is placed in the traditional market and provides $28 million of placed limits, subject to a $2 million retention with one reinstatement of limits.
+Added: Canada Catastrophe Excess of Loss Reinsurance Contract is placed in the traditional market and provides CAD 478 million of placed limits, subject to a CAD 100 million retention, with one reinstatement of limits.
+Added: The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the first quarter of 2025 was $257 million, compared to $286 million in the first quarter of 2024.
Catastrophe placement premiums reduce net written and earned premium with approximately 82% of the reduction related to homeowners premium.
−Removed: Prior year reserve reestimates Favorable reserve reestimates, including catastrophes, were $28 million
−Removed: in the third quarter of 2024 primarily due to favorable reserve reestimates in personal auto lines and homeowners lines, partially offset by unfavorable reserve reestimates in other personal lines.
−Removed: Favorable reserve reestimates, including catastrophes, were $387 million in the first nine months of 2024 primarily due to favorable reserve reestimates in homeowners and personal auto lines, partially offset by unfavorable reserve reestimates in other personal lines and commercial lines.
+Added: Prior year reserve reestimates Favorable reserve reestimates, including catastrophes, were $254 million in the first quarter of 2025 primarily due to favorable reserve reestimates in personal auto lines physical damage coverages.
For a more detailed discussion on reinsurance and reserve reestimates, see Note 9 of the condensed consolidated financial statements.
Prior year reserve reestimates
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: Prior year reserve
−Removed: reestimates (1)
−Removed: combined ratio (2)
+Added: Three months ended March 31,
Prior year reserve
10 unchanged sentences
(2) Ratios are calculated using Allstate Protection premiums earned.
−Removed: Expense ratio increased 0.3 points and 0.2 points in the third quarter and first nine months of 2024, respectively, compared to the third quarter and first nine months of 2023, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to fixed costs.
+Added: First Quarter 2025 Form 10-Q 53
+Added: Segment Results Allstate Protection
+Added: Expense ratio increased 0.8 points in the first quarter of 2025, compared to the first quarter of 2024, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to fixed costs.
Impact of specific costs and expenses on the expense ratio
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: ($ in millions, except ratios) 2024 2023 Change 2024 2023 Change
+Added: Three months ended March 31,
+Added: ($ in millions, except ratios) 2025 2024 Change
Amortization of DAC $ 1,732 $ 1,608 $ 124
18 unchanged sentences
Underwriting results
−Removed: ($ in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 2024 2023
+Added: ($ in millions) Three months ended March 31,
Claims and claims expense $ (3) $ (4)
−Removed: Asbestos claims
−Removed: $ (19) $ (44) $ (19) $ (44)
−Removed: Environmental claims
−Removed: (10) (18) (10) (18)
−Removed: Other run-off lines (30) (20) (36) (23)
−Removed: Total claims and claims expense
−Removed: (59) (82) (65) (85)
Operating costs and expenses (1) (1)
−Removed: Underwriting income (loss)
−Removed: $ (60) $ (83) $ (68) $ (88)
−Removed: Annual reserve review In the third quarter of 2024 and 2023, we performed our annual reserve review using established industry and actuarial best practices.
−Removed: The annual review resulted in unfavorable reserve reestimates totaling $58 million and $80 million in 2024 and 2023, respectively.
−Removed: The reserve reestimates are included as part of claims and claims expense.
−Removed: The reserve reestimates in 2024 primarily related to new reported information for asbestos related claims and adverse developments within the other run-off lines.
−Removed: The reserve reestimates in 2023 primarily related to new reported information and defense costs for asbestos related claims and other run-off exposures
−Removed: and higher than expected environmental reported losses.
−Removed: We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment.
−Removed: However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable.
+Added: Underwriting loss
Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance
−Removed: ($ in millions) September 30, 2024 December 31, 2023
+Added: ($ in millions) March 31, 2025 December 31, 2024
Asbestos claims
13 unchanged sentences
Net reserves $ 1,393 $ 1,414
−Removed: Third Quarter 2024 Form 10-Q 59
−Removed: Segment Results Run-off Property-Liability
Reserves by type of exposure before and after the effects of reinsurance
−Removed: ($ in millions) September 30, 2024 December 31, 2023
+Added: ($ in millions) March 31, 2025 December 31, 2024
Direct excess commercial insurance
11 unchanged sentences
Net reserves 81 82
−Removed: Other run-off business
−Removed: Gross reserves — 1
−Removed: Reinsurance — —
−Removed: Net reserves — 1
Unallocated loss adjustment expenses
5 unchanged sentences
Net reserves $ 1,393 $ 1,414
+Added: First Quarter 2025 Form 10-Q 55
+Added: Segment Results Run-off Property-Liability
Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Case IBNR Case IBNR
8 unchanged sentences
Ceded 87 13 87 13
−Removed: (1) Approximately 66% and 68% of gross case reserves as of September 30, 2024 and December 31, 2023, respectively, are subject to settlement agreements.
−Removed: (2) Approximately 73% and 72% of ceded case reserves as of September 30, 2024 and December 31, 2023, respectively, are subject to settlement agreements.
−Removed: 60 www.allstate.com
−Removed: Run-off Property-Liability Segment Results
+Added: (1) Approximately 67% and 65% of gross case reserves as of March 31, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.
+Added: (2) Approximately 73% and 72% of ceded case reserves as of March 31, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.
Gross payments from case reserves by type of exposure
−Removed: ($ in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 2024 2023
+Added: ($ in millions) Three months ended March 31,
Direct excess commercial insurance
−Removed: $ 19 $ 13 $ 51 $ 45
−Removed: (7) (7) (20) (16)
Assumed reinsurance coverage
−Removed: Ceded 1 — (1) (3)
Direct primary commercial insurance
−Removed: Ceded (1) — (2) —
−Removed: (1) In the third quarter and first nine months of 2024, 94% and 89% of payments related to settlement agreements, respectively, compared to 82% and 84% of the third quarter and first nine months of 2023, respectively.
−Removed: (2) In the third quarter and first nine months of 2024, 98% and 95% of payments related to settlement agreements, respectively, compared to 56% and 77% of the third quarter and first nine months of 2023, respectively.
−Removed: Total net reserves as of September 30, 2024, included $748 million or 52% of estimated IBNR reserves compared to $762 million or 53% of estimated IBNR reserves as of December 31, 2023.
−Removed: Total gross payments were $26 million and $88 million for the third quarter and first nine months of 2024, respectively, compared to $20 million and $73 million for the third quarter and first nine months of 2023, respectively .
+Added: (1) In the first quarter of 2025 and 2024, 90% and 85% of payments related to settlement agreements, respectively.
+Added: (2) In the first quarter of 2025 and 2024, 93% and 89% of payments related to settlement agreements, respectively.
+Added: Total net reserves as of March 31, 2025, included $709 million or 51% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.
+Added: Total gross payments were $33 million for the first quarter of 2025 compared to $23 million for the first quarter of 2024.
Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon.
The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds.
−Removed: Reinsurance collections were $5 million and $31 million for the third quarter and first nine months of 2024, respectively, compared to $6 million and $30 million for the third quarter and first nine months of 2023, respectively.
−Removed: Third Quarter 2024 Form 10-Q 61
−Removed: Segment Results Protection Services
+Added: Reinsurance collections were $6 million for the first quarter of 2025 compared to $11 million for the first quarter of 2024.
+Added: 56 www.allstate.com
+Added: Protection Services Segment Results
Protection Services Segment
Summarized financial information
−Removed: ($ in millions) Three months ended September 30, Nine months ended September 30,
−Removed: 2024 2023 2024 2023
+Added: ($ in millions) Three months ended March 31,
Premiums written $ 657 $ 627
2 unchanged sentences
Intersegment insurance premiums and service fees (1)
−Removed: 49 34 123 102
Net investment income 24 21
18 unchanged sentences
Allstate Identity Protection 2,648 3,031
−Removed: Policies in force as of September 30 (in thousands) 163,729 147,980
+Added: Policies in force as of March 31 (in thousands) 168,708 155,440
(1) Primarily related to Arity and Allstate Roadside and are eliminated in our condensed consolidated financial statements.
−Removed: Premiums written increased 3.0% or $20 million in the third quarter of 2024 compared to the third quarter of 2023, primarily due to growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside.
−Removed: Premiums written increased 2.4% or $46 million in the first nine months of 2024 compared to the same periods of 2023, primarily due to growth at Allstate Protection Plans, partially offset by lower sales at Allstate Dealer Services and Allstate Roadside.
−Removed: Adjusted net income increased 114.8% or $31 million in the third quarter of 2024 compared to the third quarter of 2023, primarily due to revenue growth and improved claim frequency at Allstate Protection Plans.
−Removed: Adjusted net income increased 63.7% or $65 million in the first nine months of 2024 compared to the same periods of 2023, due to growth at Allstate Protection Plans and improved claim severity at Allstate Roadside.
−Removed: PIF increased 10.6% or 16 million as of September 30, 2024 compared to September 30, 2023 due to growth at Allstate Protection Plans.
−Removed: Other revenue increased 46.7% or $35 million in the third quarter of 2024 and increased 20.6% or $50 million in the first nine months of 2024 compared to the same periods of 2023, primarily due to higher revenue from increased customer advertising at Arity.
−Removed: Intersegment premiums and service fees increased 44.1% or $15 million in the third quarter of 2024 due to increased advertising at Arity and increased 20.6% or $21 million in the first nine months of 2024 compared to the same periods of 2023, driven by increased advertising and higher software revenue at Arity.
−Removed: 62 www.allstate.com
−Removed: Protection Services Segment Results
−Removed: Claims and claims expense in the third quarter of 2024 were comparable to the third quarter of 2023.
−Removed: Claims and claims expense increased 1.9% or $9 million in the first nine months of 2024 compared to the same periods of 2023, primarily driven by growth at Allstate Protection Plans, partially offset by improved margins at Allstate Protection Plans due to lower frequency and lower claim severity at Allstate Roadside.
−Removed: Amortization of DAC increased 13.0% or $35 million in the third quarter of 2024 and increased 14.1% or $110 million in the first nine months of 2024 compared to the same periods of 2023, driven by growth at Allstate Protection Plans.
−Removed: Operating costs and expenses increased 24.4% or $55 million in the third quarter of 2024 and increased 14.5% or $96 million in the first nine months of 2024 compared to the same periods of 2023, primarily due to growth at Arity and Allstate Protection Plans, partially offset by lower expenses at Allstate Roadside and Allstate Identity Protection.
−Removed: Third Quarter 2024 Form 10-Q 63
+Added: Premiums written increased 4.8% or $30 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher average premiums at Dealer Services and international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside.
+Added: Adjusted net income increased 1.9% or $1 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses due to growth at Arity and higher loss costs at Dealer Services.
+Added: PIF increased 8.5% or 13 million as of March 31, 2025 compared to March 31, 2024 due to growth at Allstate Protection Plans.
+Added: Other revenue increased 50.6% or $43 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher lead generation revenue at Arity.
+Added: Intersegment premiums and service fees increased 5.7% or $2 million in the first quarter of 2025 compared to the first quarter of 2024, driven by higher lead generation revenue at Arity.
+Added: Claims and claims expense increased 1.9% or $3 million in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by growth at Allstate Protection Plans and increased severity at Dealer Services, partially offset by lower claim severity at Allstate Roadside.
+Added: Amortization of DAC increased 10.0% or $29 million in the first quarter of 2025 compared to the first quarter of 2024, driven by growth at Allstate Protection Plans.
+Added: Operating costs and expenses increased 32.1% or $75 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to expenses related to growth at Arity and Allstate Protection Plans.
+Added: First Quarter 2025 Form 10-Q 57
Segment Results Allstate Health and Benefits
2 unchanged sentences
to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business, reported within this segment.
−Removed: The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.
+Added: The transaction closed on April 1, 2025, and we expect to record a gain on the sale of approximately $625 million in the second quarter of 2025.
+Added: 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, reported within this segment.
+Added: The transaction is expected to close in 2025, subject to regulatory approvals and other customary closing conditions.
+Added: The transaction price for the group health business, less costs to sell, exceeds the carrying value of net assets related to this transaction, resulting in an expected gain of approximately $450 million that will be recognized at closing of the transaction.
+Added: Goodwill In conjunction with the EVB and group health business dispositions, the Company reallocated goodwill among the components of the Health and Benefits reporting unit using a relative fair value approach.
+Added: An interim goodwill impairment test was performed for each of the EVB and group health disposal groups and the goodwill allocated to the retained individual health business.
+Added: The interim impairment test did not result in an impairment of goodwill.
+Added: The excess of fair value over carrying amount for the retained individual health business was less than 10%.
+Added: As of March 31, 2025, the individual health reporting unit had goodwill of $41 million.
+Added: Estimating fair value is a subjective process that involves the use of significant estimates by management.
+Added: Market declines and other events impacting the fair value, including discount rates, operating results, investment returns and strategies and growth rate assumptions or increases in the level of equity required to support the business could result in goodwill impairment.
Summarized financial information
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
10 unchanged sentences
Benefit ratio (1)
−Removed: 63.4 54.9 61.1 55.1
Employer voluntary benefits (2)
−Removed: $ 19 $ 28 $ 64 $ 76
−Removed: Group health and individual health (3) (4)
+Added: Group health (3)
+Added: Individual health (4)
Adjusted net income $ 30 $ 56
3 unchanged sentences
Individual health (4)
−Removed: Policies in force as of September 30 (in thousands) 4,158 4,256
−Removed: (1) Benefit ratio is calculated as accident, health and other policy benefits less interest credited to contractholder funds of $8 million for both the three months ended September 30, 2024 and 2023, and $25 million for both the nine months ended September 30, 2024 and 2023, divided by premiums and contract charges.
+Added: Policies in force as of March 31 (in thousands) 4,169 4,193
+Added: (1) Benefit ratio is calculated as accident, health and other policy benefits less interest credited to contractholder funds of $8 million and $9 million for the three months ended March 31, 2025 and 2024, respectively, divided by premiums and contract charges.
(2) Employer voluntary benefits include supplemental life and health products offered through workplace enrollment.
1 unchanged sentence
(4) Individual health includes short-term medical and other health products sold directly to individuals.
−Removed: Premiums and contract charges increased 5.2% or $24 million in the third quarter of 2024 and increased 4.4% or $60 million in the first nine months of 2024 compared to the same periods of 2023, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.
−Removed: Adjusted net income decreased $32 million and $31 million in the third quarter and first nine months of 2024, respectively, compared to the same periods of 2023, primarily due to increased benefit utilization across all lines of business.
−Removed: Premiums and contract charges by line of business
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Premiums and contract charges increased 1.9% or $9 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.
+Added: 58 www.allstate.com
+Added: Allstate Health and Benefits Segment Results
+Added: Premiums and contract charges
+Added: Three months ended March 31,
($ in millions) 2025 2024
3 unchanged sentences
Premiums and contract charges $ 487 $ 478
−Removed: 64 www.allstate.com
−Removed: Allstate Health and Benefits Segment Results
−Removed: Other revenue increased $19 million in the third quarter of 2024 and increased $72 million in the first nine months of 2024 compared to the same periods of 2023, primarily due to an increase in individual health and group health administrative fees.
−Removed: Accident, health and other policy benefits increased 21.0% or $55 million in the third quarter of 2024 and increased 15.2% or $119 million in the first nine months of 2024 compared to the same periods of 2023, primarily from higher benefit utilization in all businesses and growth in group health and individual health.
−Removed: Accident, health and other policy benefits include changes in the reserve for future policy benefits,
−Removed: expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 10.
−Removed: Benefit ratio increased 8.6 points to 63.4 in the third quarter of 2024 compared to 54.9 in the third quarter of 2023 and increased 6.0 points to 61.1 in the first nine months of 2024 compared to 55.1 in the same period of 2023, primarily due to higher claims experience across all lines of business.
−Removed: Amortization of DAC decreased 5.1% or $2 million in the third quarter of 2024 and decreased 2.6% or $3 million in the first nine months of 2024 compared to the same periods of 2023.
+Added: Adjusted net income decreased $26 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to increased benefit utilization in group health and individual health, partially offset by lower benefit utilization and expenses in employer voluntary benefits.
+Added: Other revenue decreased $3 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to lower third-party commission revenues for the individual health business.
+Added: Accident, health and other policy benefits increased 12.5% or $37 million in the first quarter of 2025 compared to the first quarter of 2024, primarily from higher benefit utilization in group health and individual health.
+Added: Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 10.
+Added: Benefit ratio increased 6.7 points to 66.7 in the first quarter of 2025 compared to 60.0 in the first quarter of 2024, primarily due to higher claims experience across group health and individual health.
+Added: Amortization of DAC decreased 11.9% or $5 million in the first quarter of 2025 compared to the first quarter of 2024 primarily driven by employer voluntary benefits.
+Added: For information on changes in DAC, see Note 12 of the consolidated financial statements.
Operating costs and expenses
($ in millions) Employer voluntary benefits
−Removed: Group health and individual health
−Removed: Three months ended September 30, 2024
−Removed: Non-deferrable commissions
−Removed: $ 20 $ 60 $ 80
−Removed: Operating costs and expenses
−Removed: Total $ 76 $ 156 $ 232
−Removed: Nine months ended September 30, 2024
−Removed: Non-deferrable commissions
−Removed: $ 64 $ 193 $ 257
−Removed: Operating costs and expenses
−Removed: Total $ 222 $ 459 $ 681
−Removed: Three months ended September 30, 2023
+Added: health Individual
+Added: Three months ended March 31, 2025
Non-deferrable commissions
2 unchanged sentences
Total $ 73 $ 69 $ 92 $ 234
−Removed: Nine months ended September 30, 2023
+Added: Three months ended March 31, 2024
Non-deferrable commissions
2 unchanged sentences
Total $ 74 $ 68 $ 83 $ 225
−Removed: Operating costs and expenses increased $35 million in the third quarter of 2024 and increased $71 million in the first nine months of 2024 compared to the same periods of 2023, primarily due to growth in individual and group health.
−Removed: Third Quarter 2024 Form 10-Q 65
+Added: Operating costs and expenses increased $9 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to growth in individual health.
+Added: First Quarter 2025 Form 10-Q 59
Portfolio composition and strategy by reporting segment (1)
−Removed: September 30, 2024
+Added: March 31, 2025
($ in millions) Property-Liability Protection Services
19 unchanged sentences
(3) Equity securities are carried at fair value.
−Removed: The fair value of equity securities held as of September 30, 2024, was $262 million in excess of cost.
−Removed: These net gains were primarily concentrated in the technology, equity index funds and banking sectors.
−Removed: Equity securities include $633 million of funds with underlying investments in fixed income securities as of September 30, 2024.
+Added: The fair value of equity securities held as of March 31, 2025, was $73 million in excess of cost.
+Added: These net gains were primarily concentrated in the banking and communications sectors.
+Added: Equity securities include $920 million of funds with underlying investments in fixed income securities as of March 31, 2025.
(4) Short-term investments are carried at fair value.
−Removed: Investments totaled $73.60 billion as of September 30, 2024, increasing from $66.68 billion as of December 31, 2023, primarily due to positive operating cash flows and higher fixed income valuations.
+Added: (5) As of March 31, 2025, $2.07 billion of investments are classified as held for sale.
+Added: Investments totaled $74.05 billion as of March 31, 2025, increasing from $72.61 billion as of December 31, 2024, primarily due to positive operating and investment cash flows.
Portfolio composition by investment strategy We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects.
As strategies and market conditions evolve, the asset allocation may change.
−Removed: Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.
+Added: Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on
+Added: enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.
Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate with a majority being limited partnerships.
1 unchanged sentence
Portfolio composition by investment strategy
−Removed: September 30, 2024
+Added: March 31, 2025
($ in millions) Market-
11 unchanged sentences
Short-term investments (3) — (3)
−Removed: Other (2) — (2)
+Added: Other investments
Total $ (351) $ (1) $ (352)
3 unchanged sentences
Fair value as of
−Removed: ($ in millions) September 30, 2024 December 31, 2023
+Added: ($ in millions) March 31, 2025 December 31, 2024
government and agencies $ 10,705 $ 11,108
8 unchanged sentences
In general, securities with NAIC designations of 1 and 2 are considered investment grade and securities with NAIC designations of 3 through 6 are considered below investment grade.
−Removed: The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations (“NRSRO”) provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings (“Fitch”), or a comparable internal rating.
+Added: The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings (“Fitch”) or a comparable internal rating.
As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the portfolio includes certain securities that have not yet been designated by the SVO as of each balance sheet date and the categorization of these securities is based on the expected ratings indicated by internal analysis .
−Removed: As of September 30, 2024, 91.4% of the consolidated fixed income securities portfolio was rated investment grade.
+Added: As of March 31, 2025, 91.2% of the consolidated fixed income securities portfolio was rated investment grade.
Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds.
4 unchanged sentences
For further detail on our fixed income portfolio monitoring process, see Note 5 of the condensed consolidated financial statements.
−Removed: Third Quarter 2024 Form 10-Q 67
+Added: First Quarter 2025 Form 10-Q 61
The following table presents total fixed income securities by the applicable NAIC designation and comparable S&P rating.
Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating
−Removed: September 30, 2024
+Added: March 31, 2025
NAIC 1 NAIC 2 NAIC 3
26 unchanged sentences
ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities.
−Removed: Equity securities of $2.09 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REIT”) equity investments.
−Removed: Certain exchange traded and mutual funds have fixed income securities as their underlying investments.
−Removed: Mortgage loans of $765 million mainly comprise loans secured by first mortgages on developed commercial real estate.
+Added: Equity securities of $4.47 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and REITs.
+Added: Exchange traded and mutual funds that have fixed income securities as their underlying investments total $920 million as of March 31, 2025.
+Added: Mortgage loans of $770 million comprise loans secured by first mortgages on developed commercial real estate of $690 million and residential mortgage loans of $80 million.
Key considerations used to manage our exposure include property type and geographic diversification.
For further detail on our mortgage loan portfolio, see Note 5 of the condensed consolidated financial statements.
−Removed: Limited partnership interests include $7.53 billion of interests in private equity funds, $1.25 billion of interests in real estate funds and $148 million of interests in other funds as of September 30, 2024.
−Removed: We have commitments to invest additional amounts in limited partnership interests totaling $3.18 billion as of September 30, 2024.
−Removed: Other investments include $187 million of bank loans, net, and $677 million of direct investments in real estate as of September 30, 2024.
+Added: Limited partnership interests include $7.74 billion of interests in private equity funds, $1.36 billion of interests in real estate funds and $281 million of interests in other funds as of March 31, 2025.
+Added: We have commitments to invest additional amounts in limited partnership interests totaling $3.25 billion as of March 31, 2025.
+Added: Other investments include $274 million of bank loans, net and $625 million of direct investments in real estate as of March 31, 2025.
62 www.allstate.com
Unrealized net capital gains (losses)
−Removed: September 30, December 31,
+Added: March 31, December 31,
($ in millions) 2025 2024
6 unchanged sentences
Derivatives (2) (2)
−Removed: Equity method of accounting (“EMA”) limited partnerships — (4)
Investments classified as held for sale (91) (110)
3 unchanged sentences
Gross unrealized Fair
−Removed: September 30, 2024
+Added: March 31, 2025
$ 4,434 $ 61 $ (36) $ 4,459
33 unchanged sentences
Total fixed income securities $ 53,616 $ 361 $ (1,230) $ 52,747
−Removed: Third Quarter 2024 Form 10-Q 69
−Removed: Gross unrealized losses are related to an increase in market yields which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase.
+Added: First Quarter 2025 Form 10-Q 63
+Added: In general, gross unrealized losses are related to an increase in market yields, which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase.
Similarly, gross unrealized gains reflect a decrease in market yields since the time of initial purchase.
Equity securities by sector
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
($ in millions) Cost Over (under) cost Fair
5 unchanged sentences
195 (8) 187 201 (23) 178
+Added: Consumer goods
+Added: 505 (27) 478 462 (25) 437
Energy 93 8 101 88 1 89
10 unchanged sentences
Total equity securities $ 4,392 $ 73 $ 4,465 $ 4,329 $ 134 $ 4,463
−Removed: (1) As of September 30, 2024, other is generally comprised of consumer goods and communications sectors.
+Added: (1) Other is generally comprised of transportation and communications sectors.
Net investment income
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
20 unchanged sentences
Investment income, before expense $ 925 $ 837
−Removed: Net investment income increased $94 million in the third quarter of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results.
−Removed: Net investment income increased $385 million in the first nine months of 2024 compared to the same period of 2023, due to higher market-based investment results.
−Removed: Market-based results continue to benefit from portfolio repositioning into higher yielding fixed income securities and higher investment balances.
+Added: Net investment income increased 11.8% or $90 million in the first quarter of 2025, due to higher market-based results.
+Added: Market-based investment results continue to benefit from higher investment balances and portfolio repositioning into higher yielding fixed income securities.
64 www.allstate.com
Performance-based investment income
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
3 unchanged sentences
Investee level expenses (1)
−Removed: (12) (16) (36) (48)
Total performance-based income $ 196 $ 201
(1) Investee level expenses include asset level operating expenses on directly held real estate and other consolidated investments reported in investment expense.
−Removed: Performance-based investment income decreased $43 million in the third quarter of 2024 compared to the same period of 2023 primarily due to lower real estate investments results.
−Removed: Performance-based investment income increased $12 million in the first nine months of 2024 compared to the same period of 2023, primarily due to private equity valuation increases offset by lower real estate investment results, inclusive of investee level expenses.
+Added: Performance-based investment income decreased 2.5% or $5 million in the first quarter of 2025 compared to the same period of 2024 primarily due to lower private equity valuation increases offset by higher real estate investment results.
Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales.
1 unchanged sentence
Components of net gains (losses) on investments and derivatives and the related tax effect
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
1 unchanged sentence
Credit losses (1)
−Removed: (12) (20) (143) (69)
Valuation change of equity investments - appreciation (decline):
5 unchanged sentences
Net gains (losses) on investments and derivatives, pre-tax (349) (164)
−Removed: Income tax (expense) benefit (54) 19 4 48
+Added: Income tax benefit 73 36
Net gains (losses) on investments and derivatives, after-tax $ (276) $ (128)
9 unchanged sentences
Net gains (losses) on investments and derivatives, pre-tax $ (349) $ (164)
−Removed: (1) Includes $123 million loss for the nine months ended 2024 related to the carrying value of the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”).
+Added: (1) 2025 includes losses recorded for variable interests in Reciprocal Exchanges.
+Added: 2024 includes losses related to the carrying value of the surplus notes issued by Reciprocal Exchanges.
See Note 8 for further details.
(2) Relates to limited partnerships where the underlying assets are predominately public equity securities.
−Removed: Net gains on investments and derivatives in the third quarter of 2024 primarily related to valuation gains on equity investments and gains on sales of fixed income securities.
−Removed: Net losses in the first nine months of 2024 primarily related to a loss recognized related to surplus notes issued by the Reciprocal Exchanges and losses on sales of fixed income securities, partially offset by valuation gains on equity securities.
−Removed: Net gains on sales in the third quarter and losses in the first nine months of 2024 related primarily to sales of fixed income securities in connection with ongoing portfolio management.
−Removed: Net gains on valuation change and settlements of derivatives of $20 million in the third quarter of 2024 primarily related to net gains on interest rate futures used to manage duration, partially offset by losses on foreign currency contracts used to manage foreign
−Removed: Third Quarter 2024 Form 10-Q 71
−Removed: currency risk.
−Removed: Net losses of $3 million for the first nine months of 2024 primarily related to net losses on equity futures used to manage equity exposure and losses on foreign currency contracts used to manage
−Removed: foreign currency risk, partially offset by net gains on rate futures used to manage duration.
+Added: Net losses on investments and derivatives in the first quarter of 2025 primarily related to losses on sales of fixed income securities, valuation losses on equity investments and losses recorded for variable interests in Reciprocal Exchanges.
+Added: Net losses on sales in the first quarter of 2025 related primarily to sales of fixed income securities in connection with ongoing portfolio management.
+Added: Net losses on valuation change and settlements of derivatives of $19 million in the first quarter of 2025 primarily related to losses on foreign currency contracts used to manage foreign currency risk.
+Added: First Quarter 2025 Form 10-Q 65
Net gains (losses) on performance-based investments and derivatives
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: Three months ended March 31,
($ in millions) 2025 2024
4 unchanged sentences
Total performance-based $ (28) $ 21
−Removed: Net gains on performance-based investments and derivatives in the third quarter of 2024 primarily included increased valuation of equity investments, partially offset by losses on valuation change and settlements of derivatives.
−Removed: Net gains on performance-based investments and derivatives in the first nine months of 2024, primarily related to increased valuation of equity investments, partially offset by credit losses.
+Added: Net losses on performance-based investments and derivatives in the first quarter of 2025 primarily related to decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk.
66 www.allstate.com
3 unchanged sentences
Capital resources
−Removed: ($ in millions) September 30, 2024 December 31, 2023
+Added: ($ in millions) March 31, 2025 December 31, 2024
Preferred stock, common stock, treasury stock, retained income and other shareholders’ equity items $ 22,564 $ 22,331
−Removed: Accumulated other comprehensive income (loss) 251 (700)
+Added: Accumulated other comprehensive loss (509) (889)
Total Allstate shareholders’ equity 22,055 21,442
−Removed: Debt 8,083 7,942
Total capital resources $ 30,141 $ 29,527
1 unchanged sentence
Ratio of debt to capital resources 26.8 27.4
−Removed: Allstate shareholders’ equity increased in the first nine months of 2024, primarily due to net income and unrealized net capital gains, partially offset by dividends to shareholders.
−Removed: In the nine months ended September 30, 2024, we paid dividends of $719 million and $88 million related to our common and preferred shares, respectively.
−Removed: Repayment of debt On May 15, 2024, the Company repaid, at maturity, $350 million of 6.75% Senior Notes.
−Removed: Issuance of debt On June 24, 2024, the Company issued $500 million of 5.05% Senior Notes due 2029.
−Removed: 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.
−Removed: The Senior Notes are redeemable at any time at the applicable redemption price prior to the maturity date.
−Removed: The net proceeds of this issuance were used for general corporate purposes.
−Removed: Debt maturities
+Added: (1) Includes debt issuance costs of $55 million and $56 million as of March 31, 2025 and December 31, 2024, respectively.
+Added: Allstate shareholders’ equity increased in the first three months of 2025, primarily due to net income and lower unrealized net capital losses on investments, partially offset by dividends to shareholders.
+Added: In the three months ended March 31, 2025, we paid dividends of $244 million and $29 million related to our common and preferred shares, respectively.
+Added: Debt maturities We have $600 million of debt that is scheduled to mature in December 2025.
Debt maturities for each of the next five years
3 unchanged sentences
Total long-term debt principal $ 7,541
−Removed: Common share repurchases On March 31, 2024, our $5.00 billion share repurchase authorization expired.
−Removed: A new common share repurchase program has not been authorized as of September 30, 2024.
−Removed: Common shareholder dividends On January 2, 2024, April 1, 2024, and July 1, 2024, we paid a common shareholder dividend of $0.89, $0.92 and $0.92, respectively.
−Removed: On July 17, 2024, we declared a common shareholder dividend of $0.92 payable on October 1, 2024.
−Removed: Financial ratings and strength Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of
−Removed: operating leverage.
−Removed: The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies.
+Added: Common share repurchases On February 26, 2025, the Board of Directors authorized a new $1.50 billion common share repurchase program that must be completed by September 30, 2026.
+Added: As of March 31, 2025, there was $1.40 billion remaining in the $1.50 billion common share repurchase program.
+Added: During the first three months of 2025, we repurchased 511 thousand common shares, or 0.2% of total common shares outstanding at December 31, 2024, for $104 million.
+Added: Common shareholder dividends On January 2, 2025, we paid a common shareholder dividend of $0.92.
+Added: On February 26, 2025, we declared a common shareholder dividend of $1.00 payable on April 1, 2025.
+Added: Financial ratings and strength Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage.
+Added: The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their
+Added: respective methodologies.
These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock.
−Removed: In May 2024, S&P affirmed The Allstate Corporation’s (the “Corporation”) senior debt and short-term issuer ratings of BBB+ and A-2, respectively, and Allstate Insurance Company’s (“AIC”) insurance financial strength rating of A+.
−Removed: The outlook for the ratings is stable.
−Removed: In August 2024, A.M.
−Removed: Best affirmed the Corporation’s senior debt and short-term issuer ratings of a- and AMB-1, respectively, and AIC’s insurance financial strength rating of A+.
−Removed: The outlook for the ratings is stable.
−Removed: In October 2024, Moody’s affirmed the Corporation’s senior debt and short-term issuer ratings of A3 and P-2, respectively, and AIC’s insurance financial strength rating of Aa3.
−Removed: The outlook for the ratings is negative.
+Added: There have been no changes to any of our ratings from A.M.
+Added: Best, S&P or Moody’s since December 31, 2024.
Liquidity sources and uses We actively manage our financial position and liquidity levels in light of changing market, economic and business conditions.
5 unchanged sentences
The Liquidity Agreement does not establish a commitment to advance funds on the part of any party.
−Removed: AIC serves as a lender and borrower, certain other subsidiaries
−Removed: Third Quarter 2024 Form 10-Q 73
−Removed: Capital Resources and Liquidity
−Removed: serve only as borrowers, and the Corporation serves only as a lender.
+Added: AIC serves as a lender and borrower, certain other subsidiaries serve only as borrowers, and the Corporation serves only as a lender.
The maximum amount of potential funding under each of these agreements is $1.00 billion.
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The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings.
−Removed: Parent company capital capacity At the parent holding company level, we have deployable assets totaling $2.95 billion as of September 30, 2024, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.
+Added: Parent company capital capacity At the parent holding company level, we have deployable assets
+Added: First Quarter 2025 Form 10-Q 67
+Added: Capital Resources and Liquidity
+Added: totaling $2.99 billion as of March 31, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.
+Added: The proceeds from the EVB disposition will increase deployable assets at the parent holding company level.
The earnings capacity of the operating subsidiaries is the primary source of capital generation for the Corporation.
−Removed: As of September 30, 2024, we held $10.60 billion of cash, U.S.
+Added: As of March 31, 2025, we held $21.77 billion of cash, U.S.
government and agencies fixed income securities, public equity securities and short-term investments, which we would expect to be able to liquidate within one week.
−Removed: Intercompany dividends were paid in the first nine months of 2024 between the following companies:
−Removed: American Heritage Life (“AHL”), Allstate Financial Insurance Holdings Corporation (“AFIHC”), the Corporation, North Light Specialty Insurance Company (“NLSIC”) and AIC.
−Removed: Intercompany dividends
−Removed: ($ in millions)
−Removed: AHL to AFIHC $ 130
−Removed: AFIHC to the Corporation 130
−Removed: Based on the greater of 2023 statutory net income or 10% of statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2025, is estimated at $1.20 billion, less dividends paid during the preceding twelve months measured at that point in time.
−Removed: In the first nine months of 2024, no dividends have been paid.
+Added: No intercompany capital transactions from insurance companies were paid in the first three months of 2025.
+Added: Based on the greater of 2024 statutory net income or 10% of actual December 31, 2024 statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2026, is estimated to be $3.95 billion, less dividends paid during the preceding twelve months measured at that point in time.
+Added: In the first three months of 2025, no dividends have been paid.
Dividends may not be paid or declared on our common stock and shares of common stock may not be repurchased unless the full dividends for the latest completed dividend period on our preferred stock have been declared and paid or provided for.
The terms of our outstanding subordinated debentures also prohibit us from declaring or paying any dividends or distributions on our common or preferred stock or redeeming, purchasing, acquiring, or making liquidation payments on our common stock or preferred stock if we have elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions.
−Removed: In the first nine months of
−Removed: 2024, we did not defer interest payments on the subordinated debentures.
+Added: In the first three months of 2025, we did not defer interest payments on the subordinated debentures.
Additional resources to support liquidity are as follows:
5 unchanged sentences
This facility has a financial covenant requiring that we not exceed a 37.5% debt to capitalization ratio as defined in the agreement.
−Removed: This ratio was 22.0% as of September 30, 2024.
−Removed: Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of our senior unsecured, unguaranteed long-term debt.
+Added: This ratio was 20.7% as of March 31, 2025.
+Added: Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are
+Added: based on the ratings of our senior unsecured, unguaranteed long-term debt.
There were no borrowings under the credit facility during 2025.
• To cover short-term cash needs, the Corporation has access to a commercial paper facility with a borrowing capacity limited to any undrawn credit facility balance up to $750 million.
−Removed: • As of September 30, 2024, there were no balances outstanding for the credit facility or the commercial paper facility and therefore the remaining borrowing capacity was $750 million.
+Added: • As of March 31, 2025, there were no balances outstanding for the credit facility or the commercial paper facility and therefore the remaining borrowing capacity was $750 million.
• The Corporation has access to a universal shelf registration statement with the Securities and Exchange Commission that was filed on April 30, 2024 and expires in 2027.
−Removed: We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 635 million shares of treasury stock as of September 30, 2024), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.
+Added: We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 635 million shares of treasury stock as of March 31, 2025), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.
The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.
6 unchanged sentences
We believe that these statements are based on reasonable estimates, assumptions and plans.
−Removed: Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements as a result of new information or future events or developments.
+Added: Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements resulting from new information or future events or developments.
In addition, forward-looking statements are subject to certain risks or uncertainties that could cause actual results to differ materially from those communicated in these forward-looking statements.
5 unchanged sentences
(5) price competition and changes in regulation and underwriting standards;
−Removed: (6) market risk, inflation, and declines in credit quality of our investment portfolios;
−Removed: (7) our subjective determination of fair value and amount of credit losses for investments;
−Removed: (8) our participation in indemnification programs, including state industry pools and facilities;
+Added: (6) regulatory limitations on rate increases and requirements to underwrite business and participate in loss sharing arrangements;
+Added: (7) market risk and declines in credit quality of our investment portfolios;
+Added: (8) economic and capital market conditions affecting investments;
+Added: (9) subjective determination of fair value and amount of credit losses for investments;
+Added: (10) participation in indemnification programs, including state industry pools and facilities;
(11) inability to mitigate the impact associated with changes in capital requirements;
2 unchanged sentences
(14) changing consumer preferences;
−Removed: (13) new or changing technologies;
−Removed: (14) implementation of our Transformative Growth strategy;
−Removed: (15) our catastrophe management strategy;
+Added: (15) new or changing technologies impacting the business;
+Added: (16) inability to successfully deploy new technologies;
+Added: (17) Transformative Growth strategy;
+Added: (18) catastrophe management strategy;
(19) restrictions on our subsidiaries’ ability to pay dividends;
−Removed: (17) restrictions under terms of certain of our securities on our ability to pay dividends or repurchase our stock;
−Removed: (18) the availability of reinsurance at current levels and prices;
+Added: (20) restrictions under terms of some of our securities on the ability to pay dividends or repurchase stock;
+Added: (21) the availability and cost of reinsurance;
(22) counterparty risk related to reinsurance;
1 unchanged sentence
(24) intellectual property infringement, misappropriation and third-party claims;
−Removed: (22) vendor-related business disruptions or failure of a vendor to provide and protect data, confidential and proprietary information, or personal information of our customers, claimants or employees;
−Removed: (23) our ability to attract, develop and retain talent;
−Removed: Macro, Regulatory and Risk Environment (24) conditions in the global economy and capital markets;
−Removed: (25) a large-scale pandemic, the occurrence of terrorism, military actions or social unrest;
−Removed: (26) the failure in cyber or other information security controls, as well as the occurrence of events unanticipated in our disaster recovery processes and business continuity planning;
+Added: (25) reliance on vendors for products, services or protection of data and information;
+Added: (26) inability to attract, develop and retain talent;
+Added: Macro, Regulatory and Risk Environment (27) conditions in the global economy and capital markets, including changes in U.S.
+Added: trade and tariff policy, newly imposed U.S.
+Added: tariffs and any additional responsive non-U.S.
+Added: tariffs or additional U.S.
+Added: tariffs, and our ability to plan for and respond to the impact of those changes;
+Added: (28) restrictions on liquidity or availability of credit on acceptable terms;
+Added: (29) a large-scale pandemic, the occurrence of terrorism, military actions or political and social unrest or other disruptive or destabilizing events;
+Added: (30) the failure in cyber or other information security controls;
+Added: (31) failure of business continuity following a disaster or other event;
(32) changing climate and weather conditions;
(33) evolving environmental, social and governance standards and expectations;
−Removed: (29) restrictive regulations and regulatory reforms and uncertainty around the interpretation and implementation of regulations in the U.S.
+Added: (34) evolving privacy and data security regulations and increased focus on enforcement;
+Added: (35) failure to manage risk and to timely detect and mitigate a cybersecurity event;
+Added: (36) restrictive regulations and uncertainty around the interpretation and implementation of regulations in the U.S.
and internationally;
−Removed: (30) regulatory limitations on rate increases and requirements to underwrite business and participate in loss sharing arrangements;
+Added: (37) regulatory reforms and stringent application of existing regulations;
(38) losses from legal and regulatory actions;
2 unchanged sentences
Additional information concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K.
+Added: First Quarter 2025 Form 10-Q 69
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.