What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-07-30 compared with 2025-04-30 · 447 added, 418 removed, 1312 unchanged (40% of the section changed)

3 unchanged sentences

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

June 30, Six months ended June 30,

2025 2024 2025 2024

Property and casualty insurance premiums $ 15,041 $ 13,952 $ 29,739 $ 27,464

7 unchanged sentences

Accident, health and other policy benefits

188 291 521 587

Amortization of deferred policy acquisition costs 2,076 2,001 4,163 3,940

5 unchanged sentences

Total costs and expenses 14,820 15,284 30,553 29,079

Gain on disposition of operations

Income from operations before income tax expense 2,703 430 3,422 1,894

1 unchanged sentence

Net income 2,099 347 2,695 1,545

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

Net (loss) income attributable to noncontrolling interest ( 10 ) 16 ( 9 ) ( 4 )

Net income attributable to Allstate 2,109 331 2,704 1,549

7 unchanged sentences

See notes to condensed consolidated financial statements.

First Quarter 2025 Form 10-Q 1

Second Quarter 2025 Form 10-Q 1

Condensed Consolidated Financial Statements

1 unchanged sentence

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Net income $ 2,099 $ 347 $ 2,695 $ 1,545

4 unchanged sentences

Discount rate for reserve for future policy benefits

( 19 ) ( 1 ) ( 14 ) 24

Other comprehensive income (loss), after-tax 452 ( 143 ) 832 ( 326 )

Comprehensive income 2,551 204 3,527 1,219

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

Comprehensive (loss) income attributable to noncontrolling interest ( 11 ) 16 ( 6 ) ( 3 )

Comprehensive income attributable to Allstate $ 2,562 $ 188 $ 3,533 $ 1,222

4 unchanged sentences

Condensed Consolidated Statements of Financial Position (unaudited)

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

($ in millions, except par value data) June 30, 2025 December 31, 2024

Fixed income securities, at fair value (amortized cost, net $ 54,383 and $ 53,616 )

26 unchanged sentences

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

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

Common stock, $ .01 par value, 2.0 billion shares authorized and 900 million issued, 264 million and 265 million shares outstanding

Additional capital paid-in 4,084 4,029

Retained income 55,400 53,288

Treasury stock, at cost ( 635 million shares)

Treasury stock, at cost ( 636 million and 635 million shares)

( 37,418 ) ( 36,996 )

10 unchanged sentences

See notes to condensed consolidated financial statements.

First Quarter 2025 Form 10-Q 3

Second Quarter 2025 Form 10-Q 3

Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)

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

($ in millions, except per share data) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Preferred stock par value $ — $ — $ — $ —

23 unchanged sentences

Change in discount rate for reserve for future policy benefits

( 19 ) ( 1 ) ( 14 ) 24

Balance, end of period ( 57 ) ( 1,026 ) ( 57 ) ( 1,026 )

3 unchanged sentences

Change in unrealized net capital gains and losses ( 1 ) — 3 1

Noncontrolling income (loss) 1 ( 20 )

Noncontrolling (loss) income ( 10 ) 16 ( 9 ) ( 4 )

Capital transactions for noncontrolling interest

6 unchanged sentences

Condensed Consolidated Statements of Cash Flows (unaudited)

($ in millions) Three months ended March 31,

($ in millions) Six months ended

Cash flows from operating activities

4 unchanged sentences

Pension and other postretirement remeasurement (gains) losses 78 ( 11 )

Gain on disposition of operations

Policy benefits and other insurance reserves 2,139 1,750

25 unchanged sentences

Proceeds from sale of property and equipment — 18

Proceeds from disposition of operations, net of cash transferred

Net cash used in investing activities ( 2,501 ) ( 3,896 )

Cash flows from financing activities

Proceeds from issuance of debt — 495

Redemption and repayment of debt

Contractholder fund deposits 30 67

6 unchanged sentences

Net cash used in financing activities ( 954 ) ( 252 )

Net increase in cash 337 128

Net increase (decrease) in cash 382 ( 123 )

Cash at beginning of period 704 722

2 unchanged sentences

See notes to condensed consolidated financial statements.

First Quarter 2025 Form 10-Q 5

Second Quarter 2025 Form 10-Q 5

Notes to Condensed Consolidated Financial Statements

5 unchanged sentences

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

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

The condensed consolidated financial statements and notes as of June 30, 2025 and for the three and six month periods ended June 30, 2025 and 2024 are unaudited.

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

2 unchanged sentences

All significant intercompany accounts and transactions have been eliminated.

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

Adopted accounting standard

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

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

Operations and Condensed Consolidated Statements of Financial Position.

The adoption had no impact on the

Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Financial Position.

Pending accounting standards

14 unchanged sentences

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

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

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

6 www.allstate.com

1 unchanged sentence

Computation of basic and diluted earnings per common share

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

(In millions, except per share data) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Net income $ 2,099 $ 347 $ 2,695 $ 1,545

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

Net (loss) income attributable to noncontrolling interest ( 10 ) 16 ( 9 ) ( 4 )

Net income attributable to Allstate 2,109 331 2,704 1,549

2 unchanged sentences

Weighted average common shares outstanding

264.6 264.1 264.9 263.8

Effect of dilutive potential common shares:

Stock options

2.5 2.5 2.6 2.5

Restricted stock units (non-participating) and performance stock awards

0.8 0.5 0.9 0.5

Weighted average common and dilutive potential common shares outstanding

267.9 267.1 268.4 266.8

Earnings per common share - Basic $ 7.86 $ 1.14 $ 9.98 $ 5.65

1 unchanged sentence

$ 7.76 $ 1.13 $ 9.85 $ 5.58

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

Anti-dilutive share-based awards excluded from diluted earnings per common share

0.5 0.6 0.4 0.5

Note 3 Dispositions

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

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

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

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

Employer voluntary benefits (“EVB”) business disposition On April 1, 2025, the Company closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business reported in the Allstate Health and Benefits segment for $ 1.9 billion in cash, net of purchase price adjustments.

The Company recorded a gain on the sale

of $ 890 million or $ 643 million, after-tax in the second quarter of 2025.

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

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

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

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

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

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

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

First Quarter 2025 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

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

March 31, 2025 December 31, 2024

($ in millions)

Major classes of assets and liabilities disposed of in EVB transaction

($ in millions) April 1,

2025 December 31, 2024

Fixed income securities, at fair value (amortized cost, net $ 1,765 and $ 1,809 )

2 unchanged sentences

Other investments, net

116 — 116 122

Total investments 1,856 1,906

Cash 44 157 201 —

Deferred policy acquisitions costs 525 521

1 unchanged sentence

Other assets 523 554

Total assets held for sale $ 3,069 $ 717 $ 3,786 $ 3,092

$ 3,050 $ 3,092

Reserve for future policy benefits $ 1,096 $ 1,085

1 unchanged sentence

Other liabilities and accrued expenses 124 138

Total liabilities

$ 2,102 $ 2,113

Shareholders' equity included $ 51 million of accumulated other comprehensive losses related to assets and liabilities disposed of on April 1, 2025.

Second Quarter 2025 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

Group health business disposition On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business for approximately $ 1.25 billion in cash, reported in the Allstate Health and Benefits segment.

The assets and liabilities of the business are classified as held for sale at June 30, 2025.

The transaction closed on July 1,

2025, and the Company expects to record a gain on sale in the third quarter of 2025.

The group health business generated $ 123 million and $ 247 million of premiums and contract charges for the three and six months ended June 30, 2025, respectively, and adjusted net income of $ 9 million and $ 21 million for the three and six months ended June 30, 2025, respectively.

Major classes of assets and liabilities of group health business classified as held for sale

($ in millions)

June 30, 2025

Fixed income securities, at fair value (amortized cost, net $ 142 )

Short-term, at fair value (amortized cost $ 177 )

Total investments 320

Deferred policy acquisitions costs 1

Other assets 303

Total assets held for sale $ 715

Other liabilities and accrued expenses $ 14

Total liabilities held for sale $ 14

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

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

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

In addition, reserves for future policy benefits of $ 219 million were reinsured to Nationwide Life Insurance Company with a corresponding reinsurance recoverable established on July 1, 2025.

In connection with these sales, the Company is providing transition services for 24 months from the respective dates of closing.

Note 4 Reportable Segments

17 unchanged sentences

Reportable segments financial performance

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

2 unchanged sentences

Run-off Property-Liability

( 3 ) ( 3 ) ( 7 ) ( 8 )

Total Property-Liability 1,280 ( 145 ) 1,640 753

5 unchanged sentences

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

687 643 1,470 1,345

Net gains (losses) on investments and derivatives ( 144 ) ( 103 ) ( 493 ) ( 267 )

6 unchanged sentences

Total reconciling items 819 453 1,038 720

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

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

( 10 ) 16 ( 9 ) ( 4 )

Net income applicable to common shareholders $ 2,079 $ 301 $ 2,645 $ 1,490

1 unchanged sentence

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

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

First Quarter 2025 Form 10-Q 9

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

Second Quarter 2025 Form 10-Q 9

Notes to Condensed Consolidated Financial Statements

Reportable segments revenue information

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Property-Liability

17 unchanged sentences

Protection and insurance products

125 126 250 252

Intersegment premiums and service fees (1)

11 unchanged sentences

Total Allstate Health and Benefits

348 620 990 1,257

Corporate and Other

10 unchanged sentences

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

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

9 unchanged sentences

Other segment expenses (2)

1,242 1,134 2,419 2,267

Allstate Protection

7 unchanged sentences

Claims and claims expense

170 157 331 315

Amortization of DAC 328 296 646 585

1 unchanged sentence

Other segment expenses (2)

290 246 599 480

Income taxes on operations

2 unchanged sentences

Accident, health and other policy benefits

188 291 521 587

Amortization of DAC 6 32 43 74

1 unchanged sentence

Other segment expenses (2)

149 224 383 449

Income taxes on operations

8 unchanged sentences

Total $ 154 $ 144 $ 288 $ 288

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

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

First Quarter 2025 Form 10-Q 11

(1) Includes Property-Liability incurred loss adjustment expenses, net of reinsurance of $ 751 million and $ 713 million during the three months ended June 30, 2025 and 2024, respectively, and $ 1.49 billion and $ 1.41 billion during the six months ended June 30, 2025 and 2024, respectively.

(2) Includes employee-related costs, professional services, technology and other operating costs and expenses.

Second Quarter 2025 Form 10-Q 11

Notes to Condensed Consolidated Financial Statements

Additional significant financial performance data

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

13 unchanged sentences

Allstate Health and Benefits

247 14 255 28

Corporate and Other

( 9 ) ( 26 ) ( 55 ) ( 50 )

Consolidated $ 604 $ 83 $ 727 $ 349

1 unchanged sentence

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

Reportable segment total assets, investments and deferred policy acquisition costs

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

Reportable segments total assets, investments and deferred policy acquisition costs

($ in millions) June 30, 2025 December 31, 2024

Property-Liability $ 102,190 $ 96,988

15 unchanged sentences

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

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

(2) As of June 30, 2025 and December 31, 2024, $ 320 million and $ 1.91 billion of investments, respectively, and $ 1 million and $ 521 million of deferred policy acquisition costs, respectively, are classified as held for sale and not included in the table above.

12 www.allstate.com

2 unchanged sentences

Portfolio composition

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

($ in millions) June 30, 2025 December 31, 2024

Fixed income securities, at fair value $ 54,435 $ 52,747

7 unchanged sentences

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

March 31, 2025

June 30, 2025

government and agencies $ 15,640 $ 86 $ ( 14 ) $ 15,712

4 unchanged sentences

973 14 ( 4 ) 983

Mortgage-backed securities (“MBS”)

1,085 16 — 1,101

Total fixed income securities $ 54,383 $ 633 $ ( 581 ) $ 54,435

7 unchanged sentences

Scheduled maturities for fixed income securities

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

($ in millions) June 30, 2025 December 31, 2024

Amortized cost, net Fair

5 unchanged sentences

52,325 52,351 52,390 51,506

ABS 1,711 1,713 1,226 1,241

2,058 2,084 1,226 1,241

Total $ 54,383 $ 54,435 $ 53,616 $ 52,747

Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers.

ABS is shown separately because of potential prepayment of principal prior to contractual maturity dates.

ABS and MBS are shown separately because of potential prepayment of principal prior to contractual maturity dates.

Second Quarter 2025 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements

Net investment income

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Fixed income securities $ 602 $ 571 $ 1,210 $ 1,097

7 unchanged sentences

Net investment income

First Quarter 2025 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements

$ 754 $ 712 $ 1,608 $ 1,476

Net gains (losses) on investments and derivatives by type

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Fixed income securities $ ( 250 ) $ ( 96 ) $ ( 378 ) $ ( 197 )

Equity securities 164 14 52 76

Mortgage loans — 1 — 1

Limited partnership interests 13 ( 13 ) 8 ( 5 )

4 unchanged sentences

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

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

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

See Note 8 for further detail.

1 unchanged sentence

($ in millions)

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Sales $ ( 245 ) $ ( 90 ) $ ( 382 ) $ ( 201 )

5 unchanged sentences

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Gross realized gains $ 116 $ 33 $ 187 $ 74

1 unchanged sentence

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Equity securities $ 129 $ 18 $ 125 $ 78

Limited partnership interests carried at fair value

( 12 ) 17 ( 29 ) 47

Total $ 117 $ 35 $ 96 $ 125

14 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Credit losses recognized in net income

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Fixed income securities:

1 unchanged sentence

Total fixed income securities 1 ( 5 ) — ( 1 )

Mortgage loans — 1 — 1

Limited partnership interests ( 4 ) ( 16 ) ( 4 ) ( 16 )

Other investments

3 unchanged sentences

Total $ ( 4 ) $ ( 16 ) $ ( 80 ) $ ( 131 )

14 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

2 unchanged sentences

gains (losses)

March 31, 2025 Gains Losses

June 30, 2025 Gains Losses

Fixed income securities $ 54,435 $ 633 $ ( 581 ) $ 52

16 unchanged sentences

Change in unrealized net capital gains (losses)

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

($ in millions) Six months ended June 30, 2025

Fixed income securities $ 921

5 unchanged sentences

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

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

(1) Primarily unrealized net capital gains and losses for investments disposed of in the EVB business sale.

Mortgage loans The Company’s mortgage loans totaled $ 807 million and $ 784 million, net of credit loss allowance, as of June 30, 2025 and December 31, 2024, respectively, and are primarily commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States.

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

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

Residential mortgage loans totaled $ 112 million and $ 61 million as of June 30, 2025 and December 31, 2024, respectively, and are recourse to the borrower.

Second Quarter 2025 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements

Limited partnership interests

Carrying value for limited partnership interests

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

($ in millions) June 30, 2025 December 31, 2024

Private equity $ 7,578 $ 7,734

4 unchanged sentences

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

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

As of June 30, 2025 and December 31, 2024, the fair value of short-term investments totaled $ 9.64 billion and $ 4.54 billion, respectively.

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

1 unchanged sentence

Real estate is carried at cost less accumulated depreciation.

First Quarter 2025 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements

Other investments by asset type

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

($ in millions) June 30, 2025 December 31, 2024

Bank loans, net $ 335 $ 201

9 unchanged sentences

The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security.

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

All reasonably available information relevant to the collectability of the security is considered when

developing the estimate of cash flows expected to be collected.

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

6 unchanged sentences

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

16 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Recoveries after write-offs are recognized when received.

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

Accrued interest excluded from the amortized cost of fixed income securities totaled $ 568 million and $ 574 million as of June 30, 2025 and December 31, 2024, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position.

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

1 unchanged sentence

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

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

The securities identified, in addition to other securities for which the

Company may have a concern, are evaluated for potential credit losses using all reasonably available information relevant to the collectability or recovery of the security.

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

3 unchanged sentences

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

16 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Rollforward of credit loss allowance for fixed income securities

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

5 unchanged sentences

Ending balance $ ( 17 ) $ ( 19 ) $ ( 17 ) $ ( 19 )

Components of credit loss allowance as of March 31

Components of credit loss allowance as of June 30

Corporate bonds ( 16 ) ( 18 )

1 unchanged sentence

Total $ ( 17 ) $ ( 19 )

Second Quarter 2025 Form 10-Q 17

Notes to Condensed Consolidated Financial Statements

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

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

March 31, 2025

June 30, 2025

Fixed income securities

4 unchanged sentences

ABS 40 164 ( 1 ) 12 44 ( 3 ) ( 4 )

14 6 — 68 4 — —

Total fixed income securities 1,125 $ 7,806 $ ( 186 ) 1,843 $ 7,378 $ ( 395 ) $ ( 581 )

9 unchanged sentences

ABS 15 76 — 15 51 ( 4 ) ( 4 )

35 2 — 70 5 — —

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

2 unchanged sentences

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

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

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

(1) Includes fixed income securities with fair values of $ 10 million and $ 16 million and unrealized losses of $ 1 million and $ 1 million with credit loss allowances of $ 1 million and $ 3 million as of June 30, 2025 and December 31, 2024, respectively.

18 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Gross unrealized losses by unrealized loss position and credit quality as of June 30, 2025

($ in millions) Investment

7 unchanged sentences

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

First Quarter 2025 Form 10-Q 17

Notes to Condensed Consolidated Financial Statements

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

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

Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating.

1 unchanged sentence

The unrealized losses are expected to reverse as the securities approach maturity.

ABS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings.

ABS and MBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings.

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

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

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

As of June 30, 2025, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

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

The Company uses a probability of default and loss given default model for mortgage loans and bank loans to estimate current expected credit losses that considers all relevant information available including past events, current conditions, and reasonable and supportable forecasts over the life of an asset.

The Company also considers such factors as historical losses, expected prepayments and various economic factors.

The Company also considers

such factors as historical losses, expected prepayments and various economic factors.

For mortgage loans, the Company considers origination vintage year and property level information such as debt service coverage, property type, property location and collateral value.

8 unchanged sentences

Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost.

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

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

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

2 unchanged sentences

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

Second Quarter 2025 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

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

1 unchanged sentence

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

18 www.allstate.com

Notes to Condensed Consolidated Financial Statements

If the debt service coverage ratio is below 1.0 and the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees, the commercial loans may not be considered impaired.

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

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

5 unchanged sentences

Amortized cost, net $ 695 $ 723

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

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

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

Payments on all mortgage loans were current as of June 30, 2025 and December 31, 2024.

Rollforward of credit loss allowance for mortgage loans

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

Beginning balance $ ( 12 ) $ ( 11 ) $ ( 12 ) $ ( 11 )

Net increases related to credit losses — —

Net (increases) decreases related to credit losses — 1 — 1

Write-offs — — — —

1 unchanged sentence

$ ( 12 ) $ ( 10 ) $ ( 12 ) $ ( 10 )

Components of credit loss allowance as of June 30

$ ( 11 ) $ ( 10 )

$ ( 12 ) $ ( 10 )

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

4 unchanged sentences

Bank loans amortized cost by credit rating and year of origination

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

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

7 unchanged sentences

Amortized cost, net $ 335 $ 201

20 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Rollforward of credit loss allowance for bank loans

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Beginning balance $ ( 16 ) $ ( 13 ) $ ( 10 ) $ ( 22 )

3 unchanged sentences

$ ( 17 ) $ ( 11 ) $ ( 17 ) $ ( 11 )

First Quarter 2025 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

Note 6 Fair Value of Assets and Liabilities

18 unchanged sentences

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

For fair values received from

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

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

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

7 unchanged sentences

(2) Quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable;

however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate.

however, there has been a significant decrease in the

Second Quarter 2025 Form 10-Q 21

Notes to Condensed Consolidated Financial Statements

volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate.

The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources.

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

20 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

11 unchanged sentences

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

Certain ABS are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable.

Residential mortgage-backed securities, included in ABS, also use prepayment speeds as a primary input for valuation.

Certain ABS are valued based

on non-binding broker quotes whose inputs have been corroborated to be market observable.

Residential MBS include prepayment speeds as a primary input for valuation.

• Equity securities:

19 unchanged sentences

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

The primary inputs to the valuation include expected cash flows, benchmark yields, collateral performance and credit spreads.

Residential mortgage-backed securities, included in ABS, also use prepayment speeds as a primary input for valuation.

The primary inputs to the valuation include expected cash flows, benchmark yields,

22 www.allstate.com

Notes to Condensed Consolidated Financial Statements

collateral performance and credit spreads.

Residential MBS include prepayment speeds as a primary input for valuation.

• Equity securities:

4 unchanged sentences

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

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

First Quarter 2025 Form 10-Q 21

Notes to Condensed Consolidated Financial Statements

as volatility.

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

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

2 unchanged sentences

Includes the contingent consideration provision in the sale agreement for Allstate Life Insurance Company (“ALIC”) which meets the definition of a derivative.

This derivative is valued internally using a model that includes stochastically determined cash flows and inputs that include spot and forward interest rates, volatility, corporate credit spreads and a liquidity discount.

This derivative is categorized as Level 3 due to the significance of non-market observable inputs.

9 unchanged sentences

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

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

As of June 30, 2025, the Company has commitments to invest $ 138 million in limited partnership interests that are reported at net asset value.

Second Quarter 2025 Form 10-Q 23

Notes to Condensed Consolidated Financial Statements

Assets and liabilities measured at fair value

March 31, 2025

June 30, 2025

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

6 unchanged sentences

ABS — 944 39 983

— 1,013 88 1,101

Total fixed income securities 15,703 38,459 273 54,435

42 unchanged sentences

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

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

As of June 30, 2025 and December 31, 2024, Level 3 fair value measurements of fixed income securities totaled $ 273 million and $ 248 million, respectively, and included $ 85 million and $ 87 million, respectively, of securities valued based on third-party discounted cash flow pricing models where the inputs have not been corroborated to be market observable, $ 24 million and $ 22 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 2 million for both periods, of municipal fixed income securities that are not rated by third-party credit rating agencies.

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

First Quarter 2025 Form 10-Q 23

Second Quarter 2025 Form 10-Q 25

Notes to Condensed Consolidated Financial Statements

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

Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended June 30, 2025

Balance as of

December 31, 2024 Total gains (losses)

March 31, 2025 Total gains (losses)

Transfers Balance as of

March 31, 2025

June 30, 2025

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

4 unchanged sentences

ABS 51 — — — ( 26 ) 15 — ( 1 ) 39

88 — — — — — — — 88

Total fixed income securities 285 — 1 — ( 26 ) 15 — ( 2 ) 273

6 unchanged sentences

Total recurring Level 3 assets 845 19 2 — ( 26 ) 18 ( 83 ) ( 2 ) 773

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

Other liabilities

( 1 ) — — — — — — — ( 1 )

Total recurring Level 3 liabilities $ ( 1 ) $ — $ — $ — $ — $ — $ — $ — $ ( 1 )

Rollforward of Level 3 assets and liabilities held at fair value during the six month period ended June 30, 2025

Balance as of

1 unchanged sentence

Transfers Balance as of

March 31, 2024

June 30, 2025

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

4 unchanged sentences

ABS 26 — — 26 ( 26 ) 15 — ( 2 ) 39

88 — — — — — — — 88

Total fixed income securities 248 ( 2 ) 2 26 ( 33 ) 35 — ( 3 ) 273

3 unchanged sentences

Other assets 134 3 — — — — — — 137

Assets held for sale

7 — 1 — — — ( 8 ) — —

Total recurring Level 3 assets 802 31 3 26 ( 33 ) 43 ( 96 ) ( 3 ) 773

Liabilities —

Other liabilities

— ( 1 ) — — — — — — ( 1 )

Total recurring Level 3 liabilities $ — $ ( 1 ) $ — $ — $ — $ — $ — $ — $ ( 1 )

26 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

Balance as of

March 31, 2024 Total gains (losses)

Transfers Balance as of

June 30, 2024

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

Fixed income securities:

Municipal $ 8 $ — $ — $ — $ — $ — $ ( 1 ) $ — $ 7

Corporate - public 23 1 ( 1 ) — — 11 ( 4 ) — 30

Corporate - privately placed 54 ( 2 ) — — — — ( 2 ) — 50

58 — — — — 14 — ( 1 ) 71

Total fixed income securities 143 ( 1 ) ( 1 ) — — 25 ( 7 ) ( 1 ) 158

Equity securities 408 ( 3 ) — — — 9 ( 21 ) — 393

Short-term investments 21 — — — — 1 ( 20 ) ( 1 ) 1

Other investments 2 — — — — — — — 2

Other assets 120 1 — — — — — — 121

Total recurring Level 3 assets 694 ( 3 ) ( 1 ) — — 35 ( 48 ) ( 2 ) 675

Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ —

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

Balance as of

December 31, 2023 Total gains (losses)

Transfers Balance as of

June 30, 2024

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

Fixed income securities:

Municipal $ 11 $ — $ — $ — $ — $ — $ ( 2 ) $ ( 2 ) $ 7

Corporate - public 26 1 1 — — 11 ( 9 ) — 30

Corporate - privately placed 58 ( 6 ) — — — — ( 2 ) — 50

58 — — — — 14 — ( 1 ) 71

Total fixed income securities 153 ( 5 ) 1 — — 25 ( 13 ) ( 3 ) 158

Equity securities 402 6 — — — 9 ( 24 ) — 393

Short-term investments 1 — — — — 21 ( 20 ) ( 1 ) 1

Other investments 2 — — — — — — — 2

Other assets 118 3 — — — — — — 121

Total recurring Level 3 assets 676 4 1 — — 55 ( 57 ) ( 4 ) 675

Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ —

Total Level 3 gains (losses) included in net income

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

1 unchanged sentence

Net gains (losses) on investments and derivatives

16 ( 5 ) 27 —

Operating costs and expenses

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

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

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

There were no transfers into Level 3 during the three months ended June 30, 2025.

Transfers into Level 3 during the six months ended June 30, 2025 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3.

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

Transfers out of Level 3 during the three and six months ended June 30, 2025 included situations where a broker quote was used in the prior period and a quote with market observable inputs became available from the Company’s independent third-party valuation service provider in the current period.

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

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

24 www.allstate.com

There were no transfers out of Level 3 during the three and six months ended June 30, 2024.

Second Quarter 2025 Form 10-Q 27

Notes to Condensed Consolidated Financial Statements

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

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

6 unchanged sentences

Total recurring Level 3 assets $ 18 $ — $ 31 $ 9

Other liabilities $ — $ — $ ( 1 ) $ —

Total recurring Level 3 liabilities — — ( 1 ) —

Total included in net income $ 18 $ — $ 30 $ 9

5 unchanged sentences

Corporate - public $ — $ ( 1 ) $ 1 $ 1

Corporate - privately placed 1 — 1 —

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

Financial instruments not carried at fair value

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

($ in millions) June 30, 2025 December 31, 2024

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

13 unchanged sentences

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

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

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

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

2 unchanged sentences

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

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

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

28 www.allstate.com

Notes to Condensed Consolidated Financial Statements

fixed income portfolio.

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

1 unchanged sentence

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

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

First Quarter 2025 Form 10-Q 25

Notes to Condensed Consolidated Financial Statements

foreign currency denominated investments and foreign operations.

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

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

As of June 30, 2025 and December 31, 2024, the Company has not designated any fair value, cash flow or net investment hedge accounting relationships.

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

1 unchanged sentence

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

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

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

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

However, the notional amounts specified

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

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

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

4 unchanged sentences

There are no collateral requirements related to the contingent consideration.

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

Summary of the volume and fair value positions of derivative instruments as of June 30, 2025

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

14 unchanged sentences

Interest rate contracts

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

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

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

Futures Other liabilities and accrued expenses n/a 6,115 ( 3 ) — ( 3 )

Equity and index contracts

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

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

Options Other liabilities and accrued expenses n/a 11 — — —

Futures Other liabilities and accrued expenses n/a 102 — — —

Foreign currency contracts

Foreign currency forwards Other liabilities & accrued expenses $ 99 n/a — 1 ( 1 )

Foreign currency forwards Other liabilities and accrued expenses 245 n/a ( 16 ) 1 ( 17 )

Credit default contracts

Credit default swaps – buying protection Other liabilities and accrued expenses 150 n/a ( 11 ) — ( 11 )

Total liability derivatives 432 6,228 ( 31 ) $ 1 $ ( 32 )

3 unchanged sentences

(n/a = not applicable)

26 www.allstate.com

Second Quarter 2025 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

15 unchanged sentences

Interest rate contracts

Futures Other liabilities & accrued expenses n/a 12,112 $ ( 1 ) $ — $ ( 1 )

Futures Other liabilities and accrued expenses n/a 12,112 $ ( 1 ) $ — $ ( 1 )

Equity and index contracts

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

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

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

6 unchanged sentences

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

March 31, 2025

June 30, 2025

Asset derivatives $ 2 $ ( 22 ) $ 20 $ — $ — $ —

4 unchanged sentences

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

30 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Gains (losses) from valuation and settlements reported on derivatives

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

Three months ended March 31, 2025

Three months ended June 30, 2025

Interest rate contracts $ ( 9 ) $ — $ ( 9 )

Equity and index contracts ( 8 ) 17 9

Contingent consideration — 3 3

Foreign currency contracts ( 38 ) — ( 38 )

Credit default contracts ( 10 ) — ( 10 )

Total $ ( 65 ) $ 20 $ ( 45 )

Three months ended March 31, 2024

Six months ended June 30, 2025

Interest rate contracts $ ( 10 ) $ — $ ( 10 )

4 unchanged sentences

Total $ ( 84 ) $ 9 $ ( 75 )

First Quarter 2025 Form 10-Q 27

Notes to Condensed Consolidated Financial Statements

Three months ended June 30, 2024

Interest rate contracts $ ( 14 ) $ — $ ( 14 )

Equity and index contracts ( 4 ) — ( 4 )

Contingent consideration — 1 1

Foreign currency contracts 3 — 3

Total $ ( 15 ) $ 1 $ ( 14 )

Six months ended June 30, 2024

Interest rate contracts $ ( 21 ) $ — $ ( 21 )

Equity and index contracts ( 15 ) 14 ( 1 )

Contingent consideration — 3 3

Foreign currency contracts 14 — 14

Credit default contracts ( 1 ) — ( 1 )

Total $ ( 23 ) $ 17 $ ( 6 )

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

1 unchanged sentence

OTC cash and securities collateral pledged

($ in millions) March 31, 2025

($ in millions) June 30, 2025

Pledged by the Company $ 36

1 unchanged sentence

(1) $ 36 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision.

The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance.

The Company has not incurred any losses on derivative financial instruments due to counterparty

nonperformance.

Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

1 unchanged sentence

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

Second Quarter 2025 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

OTC derivatives counterparty credit exposure by counterparty credit rating

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

($ in millions) June 30, 2025 December 31, 2024

Number of counter-parties Notional amount (2)

11 unchanged sentences

Exchange traded and cleared margin deposits

($ in millions) March 31, 2025

($ in millions) June 30, 2025

Pledged by the Company $ 107

7 unchanged sentences

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

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

($ in millions) June 30, 2025 December 31, 2024

Gross liability fair value of contracts containing credit-risk-contingent features $ 38 $ 1

2 unchanged sentences

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

28 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Note 8 Variable Interest Entities

4 unchanged sentences

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

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

These losses have been reflected as capital transactions attributable to noncontrolling interest as the Company expects 100 % of its interests in surplus

notes and lines of credit to absorb expected losses of the Reciprocal Exchanges.

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

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

The assets of the Reciprocal Exchanges

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

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

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

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

32 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

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

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

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

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

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

Claims and claims expense ceded to the Company were zero and $ 1 million for the three and six months ended June 30, 2025, respectively, compared to $ 18 million and $ 30 million for the three and six months ended June 30, 2024, respectively.

Prior to July 1, 2024, the Company received a management fee for the services provided to the

Reciprocal Exchanges.

The management fees were $ 11 million and $ 21 million for the three and six months ended June 30, 2024, respectively.

Earned premiums for the Reciprocal Exchanges generated $ 2 million and $( 1 ) million for the three and six months ended June 30, 2025, respectively, compared to $ 61 million and $ 122 million for the three and six months ended June 30, 2024, respectively.

Total costs and expenses were $ 9 million and $ 7 million for the three and six months ended June 30, 2025, respectively, compared to $ 58 million and $ 145 million for the three and six months ended June 30, 2024, respectively.

Assets and liabilities of Reciprocal Exchanges

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

($ in millions) June 30, 2025 December 31, 2024

Fixed income securities $ 3 $ 47

14 unchanged sentences

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

The Company continues to digitize and modernize claim processes to

First Quarter 2025 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

increase effectiveness and efficiency.

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

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

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

Generally, the initial reserves for a new accident year are established based on claim frequency and severity assumptions for different business segments,

lines and coverages based on historical relationships to relevant inflation indicators.

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

5 unchanged sentences

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

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

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

Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, Run-off Property-Liability and

Second Quarter 2025 Form 10-Q 33

Notes to Condensed Consolidated Financial Statements

reinsurance and indemnification recoverables, is an inherently uncertain and complex process.

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

5 unchanged sentences

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

Three months ended March 31,

Six months ended June 30,

($ in millions) 2025 2024

10 unchanged sentences

Total paid ( 19,523 ) ( 18,552 )

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

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

Net balance as of June 30 34,856 33,212

Balance as of June 30 $ 44,141 $ 41,553

(1) Recoverables comprises reinsurance and indemnification recoverables.

30 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

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

This expense included losses from catastrophes of $ 4.19 billion and $ 2.85 billion in the six months ended June 30, 2025 and 2024, respectively, net of recoverables.

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

34 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

3 unchanged sentences

2024 2025 2024

Three months ended March 31,

Three months ended June 30,

Auto $ ( 415 ) $ ( 171 ) $ ( 16 ) $ ( 9 ) $ ( 431 ) $ ( 180 )

4 unchanged sentences

Run-off Property-Liability

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

Total prior year reserve reestimates $ ( 376 ) $ ( 65 ) $ 6 $ ( 138 ) $ ( 370 ) $ ( 203 )

(1) Favorable reserve reestimates are shown in parentheses.

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

First Quarter 2025 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

Note 10 Reserve for Future Policy Benefits and Contractholder Funds

Rollforward of reserve for future policy benefits (1)

Three months ended March 31,

health Traditional

($ in millions) 2025 2024 2025 2024 2025 2024

Present value of expected net premiums

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

Classified as liabilities held for sale

1,247 — 337 — 1,584 —

Total beginning balance

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

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

Effect of changes in cash flow assumptions — — — — — —

Effect of actual variances from expected experience ( 9 ) ( 44 ) 1 11 ( 8 ) ( 33 )

Adjusted beginning balance 2,004 1,693 355 341 2,359 2,034

Issuances 250 230 41 32 291 262

Interest accrual 22 18 4 5 26 23

Net premiums collected ( 110 ) ( 98 ) ( 17 ) ( 16 ) ( 127 ) ( 114 )

Ending balance at original discount rate 2,166 1,843 383 362 2,549 2,205

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

Liabilities held for sale

( 1,022 ) — ( 366 ) — ( 1,388 ) —

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

Present value of expected future policy benefits

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

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

Total beginning balance

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

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

Effect of changes in cash flow assumptions 4 ( 6 ) — — 4 ( 6 )

Effect of actual variances from expected experience ( 12 ) ( 47 ) ( 2 ) 8 ( 14 ) ( 39 )

Adjusted beginning balance 2,750 2,442 725 664 3,475 3,106

Issuances 252 230 43 33 295 263

Interest accrual 32 25 8 9 40 34

Benefit payments ( 110 ) ( 102 ) ( 9 ) ( 12 ) ( 119 ) ( 114 )

Ending balance at original discount rate 2,924 2,595 767 694 3,691 3,289

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

Liabilities held for sale

( 1,716 ) — ( 723 ) — ( 2,439 ) —

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

Net reserve for future policy benefits (1)

$ 58 $ 747 $ 6 $ 319 $ 64 $ 1,066

reinsurance recoverables (2)

— 80 — 1 — 81

Net reserve for future policy benefits, after reinsurance recoverables

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

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

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

32 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Revenue and interest recognized in the condensed consolidated statements of operations

($ in millions) Three months ended March 31,

Accident and health $ 222 $ 221

Traditional life 42 34

Total $ 264 $ 255

Interest expense (2)

Accident and health $ 10 $ 7

Traditional life 4 4

Total $ 14 $ 11

(1) Total revenues reflects gross premiums used in the calculation for reserve for future policy benefits.

Revenues included in accident and health insurance premiums and contract charges on the Condensed Consolidated Statements of Operations reflect premium revenue recognized for traditional life insurance and long-duration and short-duration accident and health insurance contracts.

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

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts, including those that are classified as held for sale as of March 31, 2025.

As of March 31,

($ in millions) Undiscounted Discounted Undiscounted Discounted

Accident and health

Expected future gross premiums $ 6,039 $ 4,057 $ 5,580 $ 3,807

Expected future benefits and expenses 4,325 2,864 3,754 2,509

Traditional life

Expected future gross premiums 1,127 786 1,002 687

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

The following table provides the weighted-average duration and weighted-average interest rates for the reserve for future policy benefits, including those that are classified as held for sale as of March 31, 2025.

As of March 31,

Accident and health Traditional life

Six months ended June 30,

Auto $ ( 653 ) $ ( 238 ) $ ( 27 ) $ ( 16 ) $ ( 680 ) $ ( 254 )

Homeowners 5 ( 103 ) 17 ( 277 ) 22 ( 380 )

Other personal lines 81 115 ( 5 ) ( 2 ) 76 113

Commercial lines ( 24 ) 163 5 ( 5 ) ( 19 ) 158

Other business lines ( 25 ) 4 — — ( 25 ) 4

Run-off Property-Liability

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

Total prior year reserve reestimates

$ ( 611 ) $ ( 54 ) $ ( 10 ) $ ( 300 ) $ ( 621 ) $ ( 354 )

Weighted-average duration (in years) 7.8 4.3 15.1 15.1

Weighted-average interest rates

Interest accretion rate (discount rate at contract issuance) 5.10 % 4.96 % 5.37 % 5.41 %

Current discount rate (upper-medium grade fixed income yield) 5.26 5.02 5.46 5.35

Significant assumptions To determine mortality and morbidity assumptions, the Company uses a combination of its historical experience and industry data.

Mortality and morbidity are monitored throughout the year.

Historical experience is obtained through annual Company experience studies in the third quarter that consider its historical claim patterns.

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

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

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

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

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

First Quarter 2025 Form 10-Q 33

(1) Favorable reserve reestimates are shown in parentheses.

(2) The first six months of 2025 includes $ 60 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024.

Second Quarter 2025 Form 10-Q 35

Notes to Condensed Consolidated Financial Statements

Contractholder funds

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

Contractholder funds activity

Three months ended March 31,

($ in millions) 2025 2024

Beginning balance $ 890 $ 888

Deposits 30 34

Interest credited 8 9

Benefits ( 8 ) ( 2 )

Surrenders and partial withdrawals ( 7 ) ( 6 )

Contract charges ( 29 ) ( 30 )

Other adjustments ( 2 ) ( 3 )

Ending balance $ 882 $ 890

Components of contractholder funds

Interest-sensitive life insurance $ 844 $ 846

Fixed annuities 38 44

Total $ 882 $ 890

Weighted-average crediting rate 4.23 % 4.20 %

Net amount at risk (1)

$ 10,679 $ 11,364

Cash surrender value $ 735 $ 731

(1) Guaranteed benefit amounts in excess of the current account balances.

Note 10 Reinsurance and Indemnification

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Property and casualty insurance premiums earned

2 unchanged sentences

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Property and casualty insurance claims and claims expense (1)

1 unchanged sentence

Accident, health and other policy benefits

( 9 ) ( 8 ) ( 28 ) ( 14 )

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

1 unchanged sentence

Reinsurance and indemnification recoverables, net

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

($ in millions) June 30, 2025 December 31, 2024

Property and casualty

4 unchanged sentences

Total $ 9,645 $ 8,924

34 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Rollforward of credit loss allowance for reinsurance recoverables

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Property and casualty (1) (2)

5 unchanged sentences

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

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

Note 12 Deferred Policy Acquisition Costs

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

Deferred policy acquisition costs activity

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

Three months ended March 31, 2025

Allstate Health and Benefits

Beginning balance $ 55 $ 9 $ 64

Acquisition costs deferred 29 19 48

Amortization charged to income ( 21 ) ( 12 ) ( 33 )

Experience adjustment ( 4 ) — ( 4 )

Classified as held for sale

2 ( 7 ) ( 5 )

Total $ 61 $ 9 $ 70

Allstate Protection

Protection Services

Ending balance $ 5,787

Three months ended March 31, 2024

Allstate Health and Benefits

Beginning balance $ 321 $ 219 $ 540

Acquisition costs deferred 26 22 48

Amortization charged to income ( 20 ) ( 11 ) ( 31 )

Experience adjustment ( 10 ) ( 1 ) ( 11 )

Total $ 317 $ 229 546

Allstate Protection

Protection Services

Ending balance $ 5,946

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

First Quarter 2025 Form 10-Q 35

Notes to Condensed Consolidated Financial Statements

Note 11 Company Restructuring

4 unchanged sentences

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

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

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

These charges are recorded in the Allstate Protection segment.

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $ 15 million and $ 13 million during the three months ended June 30, 2025 and 2024, respectively, and $ 31 million and $ 23 million during the six months ended June 30, 2025 and 2024, respectively.

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

These charges are primarily recorded in the Allstate Protection segment.

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

36 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Restructuring activity during the period

3 unchanged sentences

Payments and non-cash charges ( 24 ) ( 5 ) ( 29 )

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

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

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

2024 Organizational transformation

($ in millions)

Expected program charges $ 24

Change in estimated program initiatives and costs

2024 expenses

2025 expenses

Remaining program charges $ —

Restructuring liability as of June 30, 2025 $ 27 $ 2 $ 29

As of June 30, 2025, the cumulative amount incurred to date for active programs related to employee severance and relocation benefit expenses totaled $ 50 million.

Note 12 Guarantees and Contingent Liabilities

6 unchanged sentences

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

Members are allowed to

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

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

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

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

The Company paid $ 45 million in FAIR Plan assessments in the first quarter of 2025, and has applied for recoupment of amounts paid.

At June 30, 2025, we have accrued for the Company’s share of future estimated assessments based on the wildfire event that began on January 7, 2025.

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

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

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

36 www.allstate.com

Notes to Condensed Consolidated Financial Statements

other liabilities, such as third-party lawsuits.

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

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

The indemnification clauses are often standard contractual terms and are entered into in the normal course of

business based on an assessment of the risk of loss.

The terms of the indemnifications vary in duration and nature.

5 unchanged sentences

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

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

The aggregate liability balance related to all guarantees was immaterial as of June 30, 2025.

Regulation and compliance

1 unchanged sentence

From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, prescribe rules or guidelines on how affiliates compete in the marketplace, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agency and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, and otherwise expand overall regulation of insurance products and the insurance industry.

In addition, the Company is subject to laws and regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the SEC, the Financial Industry Regulatory Authority, the U.S.

In addition, the Company is subject to laws and

Second Quarter 2025 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the SEC, the Financial Industry Regulatory Authority, the U.S.

Equal Employment Opportunity Commission, and the U.S.

1 unchanged sentence

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

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

procedures and policies.

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

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

19 unchanged sentences

In some cases, the monetary damages sought may include punitive or treble damages.

Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings.

specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings.

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

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

First Quarter 2025 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

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

13 unchanged sentences

For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any.

In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments.

In determining whether it is possible to estimate the reasonably possible loss or

38 www.allstate.com

Notes to Condensed Consolidated Financial Statements

range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments.

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

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

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

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

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

15 unchanged sentences

Allstate Fire and Casualty Insurance Company, et al.

38 www.allstate.com

Notes to Condensed Consolidated Financial Statements

filed June 2022);

27 unchanged sentences

No classes have been certified in any of these matters.

Settlements have been reached in the following cases:

A settlement has been reached in Bass v.

Imperial Fire and Casualty Insurance Company (W.D.

filed February 2022).

Allstate Property and Casualty Insurance Company (W.D.

filed June 2019);

Kronenberg v.

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

filed December 2018) ;

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

filed December 2023) ;

and Gleichman Law Firm v.

Allstate Insurance Company (N.D.

filed February 2025).

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

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

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

1 unchanged sentence

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

No class has been certified in this matter.

A settlement in principle has been reached in Loughran v.

2 unchanged sentences

CSAA General Insurance , a matter involving another insurer.

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

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

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

Second Quarter 2025 Form 10-Q 39

Notes to Condensed Consolidated Financial Statements

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

The Company is currently defending its insured in a bodily injury lawsuit arising from an automobile accident, Simon v.

Holguin (Pierce County Superior Court, Wash.

filed September 8, 2020).

On October 21, 2022, a jury returned a verdict against the insured.

The Company, on behalf of its insured, appealed the verdict to the Washington Court of Appeals, Division II, which affirmed the judgment on June 16, 2025.

The Company continues to defend the litigation and oppose plaintiff’s allegations.

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

13 unchanged sentences

The Company asserts various defenses to plaintiffs’ claims and to class certification.

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

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

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

Plaintiffs seek damages that include additional premium refunds and punitive damages.

The Company prevailed in a lawsuit in the U.S.

District Court for the Southern District of California,

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

Plaintiffs sought damages that included additional premium refunds and punitive damages.

On June 25, 2024, the court issued an order granting plaintiffs’ motion for class certification.

The Company continues to defend the litigation and oppose plaintiffs’ allegations.

On June 25, 2025, the court granted summary judgment to Allstate on the merits.

Plaintiffs did not appeal.

On July 24, 2024, the Department of Justice filed a civil suit in the U.S.

2 unchanged sentences

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

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

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

First Quarter 2025 Form 10-Q 39

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

District Court for the Central District of California, Canchola, et al v.

Allstate Insurance Company , filed March 2023.

Plaintiffs generally allege that Allstate owes them business expenses incurred in their operation of Allstate Exclusive Agencies under the California Labor Code because they were misclassified as independent contractors.

The Company continues to defend the litigation and oppose plaintiffs’ allegations.

40 www.allstate.com

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

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

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

1 unchanged sentence

Service cost (1)

$ 26 $ ( 7 ) $ 51 $ 26

Interest cost 59 58 119 116

4 unchanged sentences

Remeasurement (gains) losses 1 ( 8 ) 77 ( 8 )

Pension net cost $ 83 $ 14

Pension net cost (benefit) $ 8 $ ( 33 ) $ 91 $ ( 19 )

Postretirement benefits

1 unchanged sentence

Interest cost 2 3 4 5

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

Costs and expenses 2 2 4 4

Remeasurement of benefit obligation

( 1 ) ( 1 ) 1 ( 3 )

Remeasurement of plan assets — — — —

4 unchanged sentences

Remeasurement (gains) losses — ( 9 ) 78 ( 11 )

Total net cost $ 87 $ 14

Total net cost (benefit) $ 9 $ ( 32 ) $ 96 $ ( 18 )

(1) For the second quarter and first six months of 2024, service cost includes a $38 million refund of premiums previously paid to the Pension Benefit Guaranty Corporation.

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

2 unchanged sentences

Pension and postretirement benefits remeasurement gains and losses

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2025 2024 2025 2024

4 unchanged sentences

Remeasurement (gains) losses $ — $ ( 9 ) $ 78 $ ( 11 )

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

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

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

40 www.allstate.com

Remeasurement losses were zero for the second quarter of 2025, as favorable asset performance compared to expected return on plan assets was offset by changes in actuarial assumptions and the liability discount rate.

Remeasurement losses of $ 78 million in the first six months of 2025, are primarily related to a decrease in the liability discount rate and changes in actuarial assumptions partially offset by favorable asset performance compared to expected return on plan assets.

The weighted average discount rate used to measure the pension benefit obligation decreased to 5.51 % on June 30, 2025 compared to 5.54 % on March 31, 2025 and 5.71 % at December 31, 2024 resulting in losses for the second quarter and first six months of 2025.

Second Quarter 2025 Form 10-Q 41

Notes to Condensed Consolidated Financial Statements

For the second quarter of 2025, the actual return on plan assets was higher than the expected return due to higher public equity valuations, partially offset by lower performance-based equity valuations and lower fixed income valuations.

For the first six months

of 2025, the actual return on plan assets was higher than the expected return due to higher public equity valuations and higher fixed income valuations driven by lower rates, partially offset by lower performance-based equity valuations.

Note 14 Supplemental Cash Flow Information

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

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

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

Non-cash investing activities include $ 27 million and $ 58 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, commercial mortgages and limited partnerships for the six months ended June 30, 2025 and 2024, respectively.

Non-cash investing activities include $ 1 million and $ 18 million related to right-of-use property and equipment obtained in exchange for lease obligations for the six months ended June 30, 2025 and June 30, 2024, respectively.

Non-cash financing activities include $ 25 million and $ 27 million related to the issuance of Allstate common shares for vested equity awards for the six months ended June 30, 2025 and 2024, respectively.

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

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

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

amounts included in the measurement of lease liabilities of $ 54 million and $ 58 million for the six months ended June 30, 2025 and 2024, respectively.

Non-cash operating activities include $ 30 million and $ 22 million related to right-of-use assets obtained in exchange for lease obligations for the six months ended June 30, 2025 and 2024, respectively.

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

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

($ in millions) Three months ended March 31,

($ in millions) Six months ended June 30,

Cash flows from operating activities

2 unchanged sentences

Net change in short-term investments 327 ( 190 )

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

Operating cash flow provided (used) $ 123 $ ( 110 )

Net change in liabilities

1 unchanged sentence

Liabilities for collateral, end of period ( 1,918 ) ( 2,001 )

Operating cash flow provided $ 96 $ 158

Operating cash flow (used) provided $ ( 123 ) $ 110

42 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Note 15 Other Comprehensive Income (Loss)

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30,

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

8 unchanged sentences

Other comprehensive income (loss) $ 575 $ ( 123 ) $ 452 $ ( 183 ) $ 40 $ ( 143 )

Six months ended June 30,

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

Unrealized net holding gains and losses arising during the period, net of related offsets $ 629 $ ( 138 ) $ 491 $ ( 635 ) $ 136 $ ( 499 )

reclassification adjustment of realized capital gains and losses ( 400 ) 84 ( 316 ) ( 209 ) 44 ( 165 )

Unrealized net capital gains and losses 1,029 ( 222 ) 807 ( 426 ) 92 ( 334 )

Unrealized foreign currency translation adjustments 49 ( 10 ) 39 ( 19 ) 4 ( 15 )

Unamortized pension and other postretirement prior service credit (1)

— — — ( 2 ) 1 ( 1 )

Discount rate for reserve for future policy benefits

( 18 ) 4 ( 14 ) 31 ( 7 ) 24

Other comprehensive income (loss) $ 1,060 $ ( 228 ) $ 832 $ ( 416 ) $ 90 $ ( 326 )

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

First Quarter 2025 Form 10-Q 41

Second Quarter 2025 Form 10-Q 43

Report of Independent Registered Public Accounting Firm

1 unchanged sentence

Results of Review of Interim Financial Information

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

We have reviewed the accompanying condensed consolidated statement of financial position of The Allstate Corporation and subsidiaries (the “Company”) as of June 30, 2025, the related condensed consolidated statements of operations, comprehensive income (loss) and shareholders’ equity for the three-month and six-month periods ended June 30, 2025 and 2024, and of cash flows for the six-month periods ended June 30, 2025 and 2024, and the related notes (collectively referred to as the “interim financial information”).

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

12 unchanged sentences

Chicago, Illinois

April 30, 2025

July 30, 2025

44 www.allstate.com

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

What changed 10-Q

Item 1. Financial Statements