What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-07-30 compared with 2025-04-30 · 400 added, 260 removed, 764 unchanged (46% of the section changed)

23 unchanged sentences

government announced additional tariffs on goods imported to the U.S.

These actions are expected to impact the results of our operations.

Depending on the severity of these actions, the following may impact operations:

• Higher new and used vehicle pricing, increasing claims costs in Allstate Protection, Protection Plans and Dealer Services

• Adverse impact on investment valuations on fixed income securities, equity securities and performance-based investments

• Declines in auto new issued applications due to lower car sales

• Reduced demand in Allstate Dealer Services due to lower new car sales

We regularly evaluate scenarios to understand the potential impact of tariffs on our businesses and incorporate estimates of the impact into our development of reserves for claims.

The evolving and uncertain global trade environment makes it difficult to predict the full effect on our business.

The following factors may impact operations at levels beyond what we are currently observing:

• Higher new and used vehicle pricing and replacement parts, increasing claims costs in Allstate Protection and Dealer Services

• Increases in building material costs, driving increases in homeowners claim costs

• Lack of availability of replacement parts from disruption in global trade broadly impacting all businesses

• Fewer auto new issued applications due to lower new and used vehicle sales

• Reduced demand in Allstate Dealer Services due to lower new vehicle sales

• Lower premiums written from reduced retail sales in Allstate Protection Plans

• Bad debt and credit allowance exposure

• Higher claims costs at Allstate Protection Plans

• Bad debt and credit allowance exposure in all businesses

• Adverse impacts on investment valuations and liquidity for market-based and performance-based investments

This is not inclusive of all potential impacts and should not be treated as such.

11 unchanged sentences

• Driving organizational transformation

We are expanding Protection Services businesses by leveraging the Allstate brand, customer base and capabilities.

On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc.

to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits (“EVB”) business for approximately $2.0 billion in cash.

First Quarter 2025 Form 10-Q 43

voluntary benefits business continues to be reported in the Allstate Health and Benefits segment, and the assets and liabilities of the business are classified as held for sale.

The transaction closed on April 1, 2025, and we expect to record a gain on the sale of approximately $625 million in the second quarter of 2025.

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

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

The transaction is expected

to close in 2025, subject to regulatory approvals and other customary closing conditions.

The transaction price for the group health business, less costs to sell, exceeds the carrying value of net assets related to this transaction, resulting in an expected gain of approximately $450 million that will be recognized at closing of the transaction.

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

Second Quarter 2025 Form 10-Q 45

We are expanding Protection Services businesses internationally and by leveraging the Allstate brand, customer base and capabilities.

On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits (“EVB”) business, reported in the Allstate Health and Benefits segment.

We recorded a gain on the sale of $890 million or $643 million, after-tax in the second quarter of 2025.

On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to

sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business, reported 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 we expect to record a gain on sale of approximately $500 million in the third quarter of 2025.

See Note 3 of the condensed consolidated financial statements for further information on the employer voluntary benefits and group health dispositions.

Consolidated net income (loss) applicable to common shareholders

Consolidated net income applicable to common shareholders

($ in millions)

Consolidated net income applicable to common shareholders decreased 52.4% to $566 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher catastrophe and realized capital losses.

Consolidated net income applicable to common shareholders increased $1.78 billion to $2.08 billion in the second quarter of 2025 compared to the second quarter of 2024, primarily due to higher earned premium and a gain on sale of the employer voluntary benefits business.

Consolidated net income applicable to common shareholders increased $1.16 billion to $2.65 billion in the first six months of 2025 compared to the same period of 2024, primarily due to higher earned premium and a gain on sale of the employer voluntary benefits business, partially offset by higher catastrophe losses.

Total revenues

($ in millions)

Total revenues increased 7.8% to $16.45 billion in the first quarter of 2025 compared to the first quarter of 2024, primarily due to premium rate increases and higher homeowners insurance policies in force.

Total revenues increased $919 million to $16.63 billion and increased $2.11 billion to $33.09 billion in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to higher homeowners and auto insurance policies in force and premium rate increases.

Net investment income

($ in millions)

Net investment income increased $90 million to $854 million in the first quarter of 2025, due to higher market-based investment results.

Net investment income increased $42 million to $754 million in the second quarter of 2025 and increased $132 million to $1.61 billion in the first six months of 2025 compared to the same periods of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results.

Financial highlights

Investments totaled $74.05 billion as of March 31, 2025, increasing from $72.61 billion as of December 31, 2024.

Allstate shareholders’ equity was $22.06 billion as of March 31, 2025, increasing from $21.44 billion as of December 31, 2024, primarily due to net income and lower unrealized net capital losses on investments, partially offset by dividends to shareholders.

Investments totaled $77.44 billion as of June 30, 2025, increasing from $72.61 billion as of December 31, 2024.

Allstate shareholders’ equity was $24.02 billion as of June 30, 2025, increasing from $21.44 billion as of

December 31, 2024, primarily due to net income and unrealized net capital gains on investments in 2025 compared to losses at December 31, 2024, partially offset by dividends to shareholders.

46 www.allstate.com

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $74.61 as of March 31, 2025, an increase of 19.8% from $62.27 as of March 31, 2024, and an increase of 3.1% from $72.35 as of December 31, 2024.

Return on average Allstate common shareholders’ equity for the twelve months ended March 31, 2025, was 21.4%, an increase of 13.8 points from 7.6% for the twelve months ended March 31, 2024.

The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending March 31, 2025.

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $82.40 as of June 30, 2025, an increase of 32.6% from $62.14 as of June 30, 2024, and an increase of 13.9% from $72.35 as of December 31, 2024.

Return on average Allstate common shareholders’ equity for the twelve months ended June 30, 2025, was 29.6%, an increase of 10.3 points from 19.3% for the twelve months ended June 30, 2024.

The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending June 30, 2025.

Summarized consolidated financial results

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

13 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

2 unchanged sentences

Segment highlights

Allstate Protection underwriting income was $364 million in the first quarter of 2025 compared to $903 million in the first quarter of 2024, due to higher catastrophe losses, partially offset by increased premiums earned.

Catastrophe losses were $2.20 billion in the first quarter of 2025 compared to $731 million in the first quarter of 2024.

Premiums written increased 8.5% to $14.30 billion in the first quarter of 2025 compared to the same period of 2024, reflecting higher premiums in auto and homeowners insurance and higher homeowners insurance policies in force.

Protection Services adjusted net income was $55 million in the first quarter of 2025 compared to $54 million in the first quarter of 2024, primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses due to growth at Arity and higher loss costs at Dealer Services.

Premiums and other revenue increased 14.6% to $799 million in the first quarter of 2025 compared to the same period of 2024, primarily due to growth at Allstate Protection Plans and higher lead generation revenue at Arity.

Allstate Health and Benefits adjusted net income was $30 million in the first quarter of 2025 compared to adjusted net income of $56 million in the first quarter of 2024.

The decline was primarily due to increased benefit utilization in group health and individual health, partially offset by lower benefit utilization and expenses in employer voluntary benefits.

Premiums and contract charges increased 1.9% to $487 million in the first quarter of 2025 compared to the same period of 2024, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.

First Quarter 2025 Form 10-Q 45

Allstate Protection underwriting income was $1.28 billion in the second quarter of 2025 compared to an underwriting loss of $142 million in the second quarter of 2024, due to increased premiums earned and lower losses, partially offset by higher expenses.

Underwriting income totaled $1.65 billion in the first six months of 2025 compared to underwriting income of $761 million in the first six months of 2024, due to increased premiums earned, partially offset by higher catastrophe losses and expenses.

Catastrophe losses were $1.99 billion and $4.19 billion in the second quarter and first six months of 2025, respectively, compared to $2.12 billion and $2.85 billion in the second quarter and first six months of 2024, respectively.

Premiums written increased 5.4% to $15.05 billion and increased 6.9% to $29.34 billion in the second quarter and first six months of 2025, respectively,

compared to the same periods of 2024, reflecting higher homeowners and auto insurance policies in force and premium rate increases.

Protection Services adjusted net income was $60 million in the second quarter of 2025 compared to $55 million in the second quarter of 2024.

Adjusted net income was $115 million the first six months of 2025 compared to $109 million in the six months of 2024.

The increase in both periods was primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses at Arity.

Premiums and other revenue increased 13.4% to $806 million and increased 14.0% to $1.61 billion in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to growth at Allstate Protection Plans.

Allstate Health and Benefits adjusted net income decreased $54 million to $4 million in the second quarter of 2025 and decreased $80 million to $34

Second Quarter 2025 Form 10-Q 47

million in the first six months of 2025 compared to the same periods of 2024.

Excluding the results of the employer voluntary benefits business sold on April 1, adjusted net income decreased $26 million to $4 million in the second quarter of 2025 and decreased $57 million to $12 million in the first six months of 2025 compared to the same periods of 2024.

The declines were primarily due to increased benefit utilization in group health and individual health.

Premiums and contract charges decreased 50.4% to $235 million in the second quarter of 2025 and decreased 24.2% to $722 million in the first six months of 2025 compared to the same periods of 2024.

Excluding the results of the employer voluntary benefits business sold on April 1, premiums and contract charges increased 3.1% to $235 million in the second quarter of 2025 and increased 4.6% to $479 million in the first six months of 2025 compared to the same periods of 2024.

The increases were due to growth in individual health and group health.

Income taxes The effective tax rate is the ratio of income tax expense (benefit) divided by income (loss) from operations before income tax expense.

For the six months ended June 30, 2025, we reported an effective tax rate of 21.2% based on total income tax expense of $727 million on total income from operations before income tax expense of $3.42 billion.

The effective rate for the six months ended June 30, 2025, is higher than the federal statutory rate of 21%, primarily due to non-deductible goodwill arising from the sale of the employer voluntary benefits business, offset by tax benefits derived from tax credits, tax-exempt interest income and share-based payments.

For the six months ended June 30, 2024, we reported an effective tax rate of 18.4% based on a total income tax expense of $349 million on income from operations before income tax benefit of $1.89 billion.

The effective tax rate for the six months ended 2024 was lower than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, shared-based payments and tax-exempt interest income.

Reconciliation of the statutory federal income tax rate to the effective income tax rate

Three months ended

June 30, Six months ended

($ in millions) 2025 2024 2025 2024

Income (loss) before income taxes

$ 2,703 $ 430 $ 3,422 $ 1,894

Statutory federal income tax rate on income from operations $ 568 21.0 % $ 90 20.9 % $ 719 21.0 % $ 398 21.0 %

Non-deductible goodwill (1)

52 1.9 — — 52 1.5 — —

State income taxes 25 0.9 14 3.3 28 0.8 19 1.0

Change in valuation allowance 3 0.1 (10) (2.3) 2 0.1 (6) (0.3)

Tax credits (14) (0.5) (5) (1.2) (28) (0.8) (26) (1.4)

Share-based payments (10) (0.4) (2) (0.5) (20) (0.6) (14) (0.7)

Tax-exempt income (10) (0.4) (5) (1.2) (19) (0.6) (11) (0.6)

Uncertain tax positions (12) (0.4) — — (14) (0.4) — —

Other 2 0.1 1 0.2 7 0.2 (11) (0.6)

Effective income tax rate on income from operations $ 604 22.3 % $ 83 19.2 % $ 727 21.2 % $ 349 18.4 %

(1) The sale of the employer voluntary benefits business on April 1, 2025 resulted in the disposal of non-deductible goodwill.

On July 4, 2025, H.R.

1 was signed into law, making a number of changes to the U.S.

The legislation makes many provisions permanent that were originally enacted under the 2017 Tax Cuts and Jobs Act, in addition to implementing new measures that directly affect corporate taxpayers.

Key provisions include the permanent reinstatement of full and immediate expensing for domestic research and development expenditures, new limitations on the deductibility of corporate charitable contributions, and a substantial rollback of renewable energy tax credits, including transferability of certain energy-related credits, while at the same time expanding availability of tax incentives for affordable housing developments.

Based on our current operations, we do not expect these changes to have a significant impact to our consolidated financial statements.

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Property-Liability Operations

35 unchanged sentences

states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written.

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Second Quarter 2025 Form 10-Q 49

Property-Liability Operations

Underwriting results

Three months ended March 31,

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

($ in millions, except ratios) 2025 2024 2025 2024

6 unchanged sentences

Restructuring and related charges

(13) (15) (29) (22)

Amortization of purchased intangibles (46) (51) (92) (102)

Underwriting income $ 360 $ 898

Underwriting income (loss) $ 1,280 $ (145) $ 1,640 $ 753

Catastrophe losses

1 unchanged sentence

Catastrophe reserve reestimates (1)

6 (138) (10) (300)

Total catastrophe losses $ 1,990 $ 2,120 $ 4,192 $ 2,851

Non-catastrophe reserve reestimates (1)

$ (376) $ (64) $ (611) $ (53)

Prior year reserve reestimates (1)

(370) (202) (621) (353)

GAAP operating ratios

1 unchanged sentence

Expense ratio (2)

20.8 21.3 21.1 20.9

Combined ratio 91.1 101.1 94.2 97.1

3 unchanged sentences

Effect of restructuring and related charges on combined ratio

0.1 0.1 0.1 0.1

Effect of amortization of purchased intangibles on combined ratio 0.3 0.4 0.3 0.4

Effect of Run-off Property-Liability business on combined ratio — — — —

(1) Restructuring and related charges for the first quarter of 2025 primarily relate to streamlining the organization and outsourcing certain aspects of operations.

See Note 13 of the condensed consolidated financial statements for additional details.

(1) Favorable reserve reestimates are shown in parentheses.

(2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.

First Quarter 2025 Form 10-Q 47

Segment Results Allstate Protection

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Allstate Protection Segment Results

Allstate Protection Segment

Underwriting results

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

7 unchanged sentences

Amortization of purchased intangibles (46) (51) (92) (102)

Underwriting income $ 364 $ 903

Underwriting income (loss) $ 1,283 $ (142) $ 1,647 $ 761

Catastrophe losses $ 1,990 $ 2,120 $ 4,192 $ 2,851

Underwriting income decreased 59.7% or $539 million in the first quarter of 2025 compared to the first quarter of 2024 due to higher catastrophe losses, partially offset by increased premiums earned.

Underwriting income was $1.28 billion in the second quarter of 2025 compared to underwriting loss of $142 million in the second quarter of 2024 due to increased premiums earned and lower losses, partially offset by higher expenses.

Underwriting income increased 116% or $886 million in the first six months of 2025 compared to the first six months of 2024, due to increased premiums earned, partially offset by higher catastrophe losses and expenses.

Change in underwriting results from prior year period - three months ended

($ in millions)

Change in underwriting results from prior year period - six months ended

($ in millions)

Second Quarter 2025 Form 10-Q 51

Segment Results Allstate Protection

Underwriting income (loss)

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

$ 1,331 $ 370 $ 2,147 $ 721

(76) (375) (527) 189

Other personal lines

(11) (55) (76) (48)

Commercial lines

(17) (138) (1) (208)

Other business lines (1)

2 unchanged sentences

(1) Represents commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products and lender-placed products.

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Allstate Protection Segment Results

Premium measures and statistics include PIF, new issued applications and average premiums to analyze our premium trends.

3 unchanged sentences

Premiums written

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

6 unchanged sentences

Premiums earned

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

6 unchanged sentences

Reconciliation of premiums written to premiums earned

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

1 unchanged sentence

(Increase) decrease in unearned premiums

(767) (921) (1,039) (1,158)

Other 66 (19) 68 (65)

Total premiums earned $ 14,346 $ 13,339 $ 28,373 $ 26,239

Policies in force

As of March 31,

As of June 30,

(In thousands)

4 unchanged sentences

Total 37,900 37,677

Auto insurance premiums written increased 5.2% or $491 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the following factors:

• Increased Allstate brand average premiums driven by rate increases.

In the three months ended March 31, 2025, rate increases of 4.3% were implemented in 32 locations, resulting in total insurance premium impact of 1.4%

• In locations not achieving acceptable returns, we expect to continue to pursue targeted rate

In states where we are achieving acceptable returns, we plan to implement rates that keep pace with increasing costs

• PIF decreased 0.4% or 107 thousand to 25,100 thousand as of March 31, 2025 compared to March 31, 2024

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Allstate Protection Segment Results

Auto insurance premiums written increased 2.7% or $249 million in the second quarter of 2025 compared to the second quarter of 2024 and 4.0% or $740 million in the first six months of 2025 compared to the first six months of 2024, primarily due to the following factors:

• Increase in Allstate brand average premiums driven by rate increases that have moderated as we focus on growth and continued rollout of Affordable, Simple and Connected auto product.

In the six months ended June 30, 2025 rate increases of 4.2% were implemented in 46 locations, resulting in total insurance premium impact of 1.8%

• PIF increased 0.5% or 119 thousand to 25,243 thousand as of June 30, 2025 compared to June 30, 2024

• Increased new issued applications in all channels

First Quarter 2025 Form 10-Q 49

Segment Results Allstate Protection

• In locations not achieving acceptable returns, we expect to continue to pursue targeted rate increases.

In states where we are achieving acceptable returns, we plan to implement rates that keep pace with increasing costs

Auto premium measures and statistics

Three months ended March 31,

2025 2024 Change

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

2025 2024 Change 2025 2024 Change

New issued applications (in thousands)

3 unchanged sentences

Independent agency

685 562 21.9 1,371 1,117 22.7

708 538 31.6 1,465 1,048 39.8

Total new issued applications 2,157 1,728 24.8 % 4,348 3,398 28.0 %

Allstate brand average premium $ 850 $ 841 1.1 % $ 852 $ 832 2.4 %

Homeowners insurance premiums written increased 20.1% or $579 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the following factors:

Homeowners insurance premiums written increased 14.3% or $550 million in the second quarter of 2025 compared to the second quarter of 2024 and increased 16.8% or $1.13 billion in the first six months of 2025 compared to the first six months of 2024, primarily due to the following factors:

• Higher Allstate brand average premiums from implemented rate increases and inflation in insured home replacement costs and other aging factor adjustments, combined with policies in force growth

• In the three months ended March 31, 2025, rate increases of 5.9% were implemented in 19 locations, resulting in total estimated insurance premium impact of 1.5%, excluding the impact of changes in insured home replacement costs

• In the six months ended June 30, 2025, rate increases of 6.9% were implemented in 36 locations, resulting in total estimated insurance premium impact of 2.9%, excluding the impact of changes in insured home replacement costs

• PIF increased 2.3% or 170 thousand to 7,596 thousand as of June 30, 2025 compared to June 30, 2024, primarily in the direct and exclusive agency

channels, partially offset in the independent agency channel

• Increased new issued applications in direct and exclusive agency channels

We are not writing new homeowners business in California and Florida.

We are not writing new homeowners business in Florida.

We are also non-renewing certain policies in Florida.

We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.

National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions.

As we improve underwriting margins to targeted levels through underwriting and rate actions, policy growth in the independent agency channel may be negatively impacted.

Homeowners premium measures and statistics

Three months ended March 31,

2025 2024 Change

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

2025 2024 Change 2025 2024 Change

New issued applications (in thousands)

3 unchanged sentences

Independent agency

48 61 (21.3) 95 109 (12.8)

54 32 68.8 95 57 66.7

Total new issued applications 353 334 5.7 % 673 625 7.7 %

Allstate brand average premium $ 2,267 $ 1,993 13.7 % $ 2,241 $ 1,957 14.5 %

Other personal lines premiums written increased 10.5% or $69 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers.

We are not writing new condominium business in California and Florida, and we are non-renewing certain policies in Florida.

Commercial lines premiums written decreased 40.1% or $63 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew policies.

committed to offering comprehensive commercial products to customers through our exclusive agency, independent agency and direct channels, with solutions offered by the National General brand, NEXT Insurance and other brokered solutions.

Other business lines premiums written increased 28.1% or $38 million in the first quarter of 2025 compared to the first quarter of 2024 due to growth in the lender-placed business.

Other personal lines premiums written increased 2.4% or $20 million in the second quarter of 2025 compared to the second quarter of 2024 and increased 5.9% or $89 million in the first six months of 2025 compared to the first six months of 2024, primarily due

to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers.

We are not writing new condominium business in Florida, and we are non-renewing certain policies in Florida.

Second Quarter 2025 Form 10-Q 53

Segment Results Allstate Protection

Commercial lines premiums written decreased 33.3% or $50 million in the second quarter of 2025 compared to the second quarter of 2024 and decreased 36.8% or $113 million in the first six months of 2025 compared to the first six months of 2024, primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew policies.

We are committed to offering comprehensive commercial products to customers through our exclusive agency, independent agency and direct channels, with solutions offered by the National General brand, NEXT Insurance and other brokered solutions.

Other business lines premiums written decreased 0.6% or $1 million in the second quarter of 2025 compared to the second quarter of 2024.

Other business lines premiums written increased 12.8% or $37 million in the first six months of 2025 compared to the first six months of 2024, due to growth in the lender-placed business.

GAAP operating ratios include loss ratio, expense ratio and combined ratio to analyze our profitability trends.

Frequency and severity changes are used to describe the trends in loss costs.

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Allstate Protection Segment Results

Combined ratios

2 unchanged sentences

2025 2024 2025 2024 2025 2024

Three months ended March 31,

Three months ended June 30,

65.0 74.2 21.0 21.7 86.0 95.9

7 unchanged sentences

Impact of restructuring and related charges 0.1 0.1 0.1 0.1

(1) Expense ratio includes other revenue of $44 million for the three months ended March 31, 2025, compared to $38 million for the three months ended March 31, 2024, for fees on auto assigned risk policies.

Six months ended June 30,

Auto 67.1 74.8 21.5 21.2 88.6 96.0

Homeowners 86.4 75.6 20.7 21.5 107.1 97.1

Other personal lines (1)

88.6 88.9 16.4 14.6 105.0 103.5

Commercial lines 71.0 136.4 29.5 27.2 100.5 163.6

Other business lines 44.2 46.8 27.3 18.2 71.5 65.0

Total 73.1 76.2 21.1 20.9 94.2 97.1

Impact of amortization of purchased intangibles 0.3 0.4 0.3 0.4

Impact of restructuring and related charges 0.1 0.1 0.1 0.1

(1) Expense ratio includes other revenue of $47 million and $91 million for the three and six months ended June 30, 2025, respectively, compared to $26 million and $64 million for the three and six months ended June 30, 2024, respectively, for fees on auto assigned risk policies.

(2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.

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Allstate Protection Segment Results

Loss ratio Effect of catastrophe

losses (1) (2)

Effect of prior year reserve reestimates Effect of catastrophe losses included in prior year reserve reestimates

2025 2024 2025 2024 2025 2024 2025 2024

Three months ended March 31,

Three months ended June 30,

Auto 65.0 74.2 2.2 3.9 (4.5) (2.0) (0.2) (0.1)

81.2 90.3 42.8 49.6 0.8 (5.8) 0.5 (3.9)

17.6 (0.2) (6.0) — (4.7)

Other personal lines 86.1 92.0 19.3 17.3 3.9 8.7 0.3 0.2

2 unchanged sentences

Total 70.3 79.8 13.9 15.9 (2.6) (1.5) — (1.0)

(1) The ten-year average effect of first-quarter catastrophe losses on the total combined ratio was 8.6 points.

(2) The ten-year average effect of first-quarter homeowner catastrophe losses on the total combined ratio was 29.3 points.

Auto loss ratio decreased 6.1 points in the first quarter of 2025, compared to the same period of 2024 driven by increased earned premiums and lower non-catastrophe losses.

Estimated report year 2025 incurred claim severity for Allstate increased compared to report year 2024 for major coverages due to higher repair costs, medical consumption and attorney representation.

Six months ended June 30,

Auto 67.1 74.8 2.2 2.6 (3.6) (1.4) (0.2) (0.1)

Homeowners 86.4 75.6 46.3 33.9 0.3 (5.9) 0.3 (4.3)

Other personal lines 88.6 88.9 18.0 13.4 5.0 8.3 (0.3) (0.1)

Commercial lines 71.0 136.4 2.3 1.8 (8.7) 48.3 2.3 (1.6)

Other business lines 44.2 46.8 15.9 10.1 (7.5) 1.4 — —

Total 73.1 76.2 14.8 10.9 (2.2) (1.4) — (1.1)

(1) The ten-year average effect of total catastrophe losses on the total combined ratio was 13.8 points and 11.2 points in the second quarter and first six months of 2025, respectively.

(2) The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 44.8 points and 37.1 points in the second quarter and first six months of 2025, respectively.

Auto loss ratio decreased 9.2 points and decreased 7.7 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024 driven by increased earned premiums, lower claim frequency and higher favorable non-catastrophe reserve reestimates.

Estimated report year 2025 incurred claim severity for Allstate brand increased compared to report year 2024 for major coverages due to higher repair costs, mix of total loss frequency, medical consumption and attorney representation.

Gross claim frequency decreased relative to the prior year.

We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections and accelerating resolution of bodily injury claims.

Homeowners loss ratio increased 31.5 points in the first quarter of 2025 compared to the same period of 2024 primarily due to higher catastrophe losses, partially offset by increased premiums earned.

Gross claim frequency, excluding catastrophes, decreased in the first quarter of 2025 compared to the same period of 2024.

Paid claim severity, excluding catastrophes, increased in the first quarter of 2025 compared to the same period of 2024 due to an increase in freeze related claims and larger losses within the fire peril.

Homeowners loss ratio decreased 9.1 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to increased premiums earned.

Homeowners loss ratio increased 10.8 points in the first six months of 2025 compared to the first six months of 2024, primarily due to higher catastrophe losses, partially offset by increased premiums earned.

Gross claim frequency, excluding catastrophes, decreased in the second quarter and first six months of 2025 compared to the same periods of 2024.

Paid claim severity, excluding catastrophes, increased in the second quarter and first six months of 2025 compared to the same periods of 2024 due to a mix of fire and wind/hail perils.

Homeowners paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the quarter.

Other personal lines loss ratio increased 5.6 points in the first quarter of 2025, compared to the same

period of 2024 primarily due to higher catastrophe losses.

Commercial lines loss ratio decreased 57.0 points in the first quarter of 2025 compared to the same period of 2024, primarily due to lower losses, partially offset by a decrease in premiums earned driven by the strategic decision to exit an unprofitable business.

Other business lines loss ratio increased 5.4 points in the first quarter of 2025, compared to the same period of 2024, primarily due to higher catastrophe losses.

Catastrophe losses increased $1.47 billion to $2.20 billion in the first quarter of 2025 compared to the first quarter of 2024 due to $1.06 billion from the California wildfires, and larger losses per event from wind/hail events in March.

The catastrophe losses in the first quarter of 2025 are net of $1.13 billion of expected reinsurance recoveries.

The California wildfire event includes reinsurance reinstatement premiums and estimated California FAIR Plan assessments.

We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring

First Quarter 2025 Form 10-Q 51

Other personal lines loss ratio decreased 5.9 points and decreased 0.3 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024 primarily due to increased

premiums earned, partially offset by higher catastrophe losses.

Commercial lines loss ratio decreased 74.2 points and 65.4 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to lower losses, partially offset by a decrease in premiums earned driven by the strategic decision to exit an unprofitable business.

Other business lines loss ratio decreased 10.9 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to lower losses and increased premiums earned.

Other business lines loss ratio decreased 2.6 points in the first six months of 2025 compared to the first six months of 2024, primarily due to higher favorable non-catastrophe reserve reestimates and increased premiums earned, partially offset by higher catastrophe losses.

Catastrophe losses decreased $130 million to $1.99 billion in the second quarter of 2025 compared to the second quarter of 2024.

Catastrophe losses increased $1.34 billion to $4.19 billion in the first six months of 2025 compared to the first six months of 2024, primarily due to the California wildfires and larger losses per event from wind/hail events.

Catastrophes are caused by various natural events including high winds, winter storms and freezes,

Second Quarter 2025 Form 10-Q 55

Segment Results Allstate Protection

within a certain amount of time following the event.

Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.

tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.

We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents.

3 unchanged sentences

The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process.

Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting

their ability to inspect losses, determining whether losses are covered by our homeowners policy (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.

Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting their ability to inspect losses, determining whether losses are covered by our homeowners policy

(generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.

In these situations, we may need to adapt our practices to accommodate these circumstances in order to determine a best estimate of our losses from a catastrophe.

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Catastrophe losses by the type of event

Three months ended March 31,

($ in millions) Number of events 2025 Number of events 2024

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

($ in millions) Number of events 2025 Number of events 2024 Number of events 2025 Number of events 2024

Tornadoes — $ — 1 $ 53 — $ — 1 $ 53

Wind/hail 36 2,026 41 2,146 50 3,162 59 2,908

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Prior year reserve reestimates (1)

(1) (138) 50 (300)

Prior year aggregate reinsurance recoveries

Current year aggregate reinsurance recoveries

Prior quarter reserve reestimates (52) 39 — —

Total catastrophe losses 37 $ 1,990 43 $ 2,120 53 $ 4,192 (2)

1 unchanged sentence

(2) Gross losses before reinsurance recoverables and reinstatement premiums were $5.22 billion.

Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide our shareholders with an acceptable return on the risks assumed in our property business, reduce earnings variability, and provide protection to our customers.

Our current catastrophe reinsurance program supports our risk and return framework which incorporates our robust economic capital model and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires.

As of March 31, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.1 billion, net of reinsurance.

Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide shareholders with long-term returns on the risks assumed in our property business, reduce earnings volatility, and provide protection to our customers.

The current catastrophe reinsurance program supports our risk and return framework which incorporates robust economic capital modeling and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires.

As of June 30, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.0 billion, net of reinsurance.

We continually review our aggregate risk appetite and the cost and availability of reinsurance to optimize the risk and return profile of this exposure.

We have placed coverage related to our 2025-2026 Nationwide Excess Catastrophe Reinsurance Program (the “Nationwide Program”), the Kentucky Earthquake Catastrophe Reinsurance Contract and the Canada Catastrophe Excess Reinsurance Contract.

The Florida Excess Catastrophe Reinsurance Program and the National General Lender Services Program will be completed in the second quarter of 2025.

We are continuing to evaluate complimentary coverage that

provides aggregate protection and reduces earnings volatility.

Similar to our 2024 program, our 2025 program includes coverage for losses to personal lines property, personal lines automobile, commercial lines property or commercial lines automobile arising out of multiple perils, in addition to hurricanes, earthquakes and wildfires.

The Nationwide Program provides per occurrence coverage up to $9.50 billion of loss less a $1.00 billion retention and is subject to the percentage of reinsurance placed in each of its agreements.

It also provides aggregate coverage up to $500 million for catastrophe loss events in excess of a deductible of $50 million per event with $66 million of limit utilized by expected recoveries.

Property business in the state of Florida is excluded from this program.

Separate reinsurance agreements address the distinct needs of separately capitalized legal entities.

The Nationwide Program includes reinsurance agreements with both the traditional and insurance-linked securities (“ILS”) markets as described below:

• Core traditional market multi-year and per occurrence agreements provide limits totaling $5.87 billion for catastrophe losses arising out of multiple perils and are comprised of the following:

During the second quarter of 2025, we placed one single-year term contract as part of our 2025-2026 Nationwide Excess Catastrophe Reinsurance Program, added a U.S.

Homeowners Aggregate contract, and completed the placement of our 2025-2026 Florida

Excess Catastrophe Reinsurance Program (“Florida Program”), the National General Lender Services Standalone Program and the National General Flood Excess of Loss Reinsurance Contract.

2025-2026 Nationwide Excess Catastrophe Reinsurance Program updates include one single-year term contract providing $217 million of placed limit in excess of a $4.25 billion retention on a per occurrence basis.

Homeowners Aggregate A seven-month duration aggregate contract was placed with a risk period of June 1, 2025 to December 31, 2025.

This contract provides $325 million of placed limit in excess of a $3.50 billion retention for US Homeowners catastrophe events, including the state of Florida.

Florida Program Our 2025 Florida Program provides coverage for property policies of Castle Key Insurance Company and certain affiliate companies for Florida catastrophe events up to $1.10 billion of loss less a $30 million retention.

This includes coverage for events up to $951 million of loss less a $30 million

56 www.allstate.com

Allstate Protection Segment Results

– Contracts providing combined $3.25 billion of placed limits exhausting at $4.25 billion, with one annual reinstatement.

– Three multi-year contracts providing combined $336 million of placed limits with two of the contracts providing one reinstatement of limits over each contract’s term.

– Four single-year contracts providing combined $2.28 billion of placed limits filling capacity around the multi-year and ILS placements, with two contracts providing one reinstatement of limits.

• ILS placements provide $2.70 billion of placed limits, with no reinstatement of limits, and are comprised of the following:

– Ten contracts providing occurrence coverage of $2.20 billion of placed limits, reinsuring losses in all states except Florida caused by named storms, earthquakes and fire following earthquakes, severe weather, wildfires, and other naturally occurring or man-made events determined to be a catastrophe by the Company.

– One contract providing occurrence and aggregate coverage of $175 million of placed limits, also provide that for each annual period beginning April 1, Allstate declared catastrophes to personal lines property and automobile business can be aggregated to erode the aggregate retention and qualify for coverage under the aggregate limits.

Recoveries are limited to the ultimate net loss from the reinsured event.

– Two contracts providing aggregate coverage of $325 million of placed limits, with $66 million of limit utilized by expected recoveries.

Kentucky Earthquake Excess Catastrophe Reinsurance Contract is placed in the traditional market and provides $28 million of placed limits, subject to a $2 million retention with one reinstatement of limits.

Canada Catastrophe Excess of Loss Reinsurance Contract is placed in the traditional market and provides CAD 478 million of placed limits, subject to a CAD 100 million retention, with one reinstatement of limits.

The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the first quarter of 2025 was $257 million, compared to $286 million in the first quarter of 2024.

retention on a first event occurrence, in addition to the Florida Hurricane Catastrophe Fund (“FHCF”) which provides a combined placed limit of $153 million.

The Florida Program includes reinsurance agreements placed in the traditional market, FHCF and the insurance-linked securities (“ILS”) market as follows:

• For qualifying losses to personal lines property in Florida caused by storms the National Hurricane Center declares to be hurricanes, the Florida Program has three mandatory FHCF inuring contracts providing $170 million of limits, 90% placed.

• Traditional market placements comprise reinsurance limits for losses to personal lines property in Florida arising out of multiple perils including those not covered by the FHCF contracts.

One contract provides combined $405 million of placed limit with one automatic reinstatement of limits with premium due, while a separate contract provides coverage to partially offset these reinstatement premiums.

An additional contract provides $66 million of reinsurance limit for a second event.

• ILS placements provide $516 million of placed limits for qualifying losses to personal lines property in Florida caused by a named storm event, a severe weather event, an earthquake event, a fire event, a volcanic eruption event, or a meteorite impact event.

National General Lender Services Standalone Program is placed in the traditional market and provides $410 million of placed limits, subject to a $90

million retention, with one automatic reinstatement of limits.

Inuring contracts include the National General FHCF contract providing $130 million of limits in excess of a $73 million retention, 90% placed.

National General Flood Excess of Loss Reinsurance Contract provides $50 million of placed limits, subject to a $20 million retention, with one automatic reinstatement of limits.

For a complete summary of the 2025 reinsurance placement, please read this in conjunction with the discussion and analysis in Part I.

Management’s Discussion and Analysis - Allstate Protection Segment Results, Catastrophe Reinsurance of The Allstate Corporation Form 10-Q for the quarterly period ended March 31, 2025.

The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the second quarter and first six months of 2025 was $305 million and $562 million, respectively, compared to $296 million and $582 million in the second quarter and first six months of 2024.

Catastrophe placement premiums reduce net written and earned premium with approximately 82% of the reduction related to homeowners premium.

Prior year reserve reestimates Favorable reserve reestimates, including catastrophes, were $254 million in the first quarter of 2025 primarily due to favorable reserve reestimates in personal auto lines physical damage coverages.

Prior year reserve reestimates Favorable reserve reestimates, including catastrophes, were $372 million and $626 million in the second quarter and first six months of 2025, respectively, primarily due to favorable reserve reestimates in personal auto lines.

For a more detailed discussion on reinsurance and reserve reestimates, see Note 9 of the condensed consolidated financial statements.

Prior year reserve reestimates

Three months ended March 31,

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

Prior year reserve

1 unchanged sentence

combined ratio (2)

Prior year reserve

reestimates (1)

combined ratio (2)

($ in millions, except ratios) 2025 2024 2025 2024 2025 2024 2025 2024

7 unchanged sentences

(2) Ratios are calculated using Allstate Protection premiums earned.

First Quarter 2025 Form 10-Q 53

Second Quarter 2025 Form 10-Q 57

Segment Results Allstate Protection

Expense ratio increased 0.8 points in the first quarter of 2025, compared to the first quarter of 2024, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to fixed costs.

Expense ratio decreased 0.5 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to higher earned premium growth relative to costs.

Expense ratio increased 0.2 points in the first six months of 2025 compared to the first six months of 2024, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to costs.

Impact of specific costs and expenses on the expense ratio

Three months ended March 31,

($ in millions, except ratios) 2025 2024 Change

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

($ in millions, except ratios) 2025 2024 Change 2025 2024 Change

Amortization of DAC $ 1,742 $ 1,673 $ 69 $ 3,474 $ 3,281 $ 193

18 unchanged sentences

Underwriting results

($ in millions) Three months ended March 31,

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

2025 2024 2025 2024

Claims and claims expense $ (2) $ (2) $ (5) $ (6)

1 unchanged sentence

Underwriting loss

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

Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance

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

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

Asbestos claims

14 unchanged sentences

Reserves by type of exposure before and after the effects of reinsurance

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

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

Direct excess commercial insurance

18 unchanged sentences

Net reserves $ 1,360 $ 1,414

First Quarter 2025 Form 10-Q 55

Second Quarter 2025 Form 10-Q 59

Segment Results Run-off Property-Liability

Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Case IBNR Case IBNR

8 unchanged sentences

Ceded 74 26 87 13

(1) Approximately 67% and 65% of gross case reserves as of March 31, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.

(2) Approximately 73% and 72% of ceded case reserves as of March 31, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.

(1) Approximately 66% and 65% of gross case reserves as of June 30, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.

(2) Approximately 73% and 72% of ceded case reserves as of June 30, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.

Gross payments from case reserves by type of exposure

($ in millions) Three months ended March 31,

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

2025 2024 2025 2024

Direct excess commercial insurance

$ 34 $ 16 $ 60 $ 32

(10) (7) (21) (13)

Assumed reinsurance coverage

Ceded (1) (2) (1) (2)

Direct primary commercial insurance

(1) In the first quarter of 2025 and 2024, 90% and 85% of payments related to settlement agreements, respectively.

(2) In the first quarter of 2025 and 2024, 93% and 89% of payments related to settlement agreements, respectively.

Total net reserves as of March 31, 2025, included $709 million or 51% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.

Total gross payments were $33 million for the first quarter of 2025 compared to $23 million for the first quarter of 2024.

Ceded (1) (1) (1) (1)

(1) In the second quarter and first six months of 2025, 93% and 91% of payments related to settlement agreements, respectively, compared to 87% and 86% in the second quarter and first six months of 2024, respectively.

(2) In the second quarter and first six months of 2025, 94% and 93% of payments related to settlement agreements, respectively, compared to 96% and 93% in the second quarter and first six months of 2024, respectively.

Total net reserves as of June 30, 2025, included $666 million or 49% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.

Total gross payments were $45 million and $78 million for the second quarter and first six months of 2025, respectively, compared to $39 million and $62 million for the second quarter and first six months of 2024, respectively.

Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon.

The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds.

Reinsurance collections were $6 million for the first quarter of 2025 compared to $11 million for the first quarter of 2024.

Reinsurance collections were $10 million and $16 million for the second quarter and first six months of 2025, respectively, compared to $15 million and $26 million for the second quarter and first six months of 2024, respectively.

60 www.allstate.com

2 unchanged sentences

Summarized financial information

($ in millions) Three months ended March 31,

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

2025 2024 2025 2024

Premiums written $ 733 $ 676 $ 1,390 $ 1,303

9 unchanged sentences

Income tax expense on operations (18) (19) (35) (36)

noncontrolling interest — —

Adjusted net income $ 60 $ 55 $ 115 $ 109

10 unchanged sentences

Allstate Identity Protection 2,669 2,510

Policies in force as of March 31 (in thousands) 168,708 155,440

Policies in force as of June 30 (in thousands) 169,669 158,019

(1) Primarily related to Arity and Allstate Roadside and are eliminated in our condensed consolidated financial statements.

Premiums written increased 4.8% or $30 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher average premiums at Dealer Services and international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside.

Adjusted net income increased 1.9% or $1 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses due to growth at Arity and higher loss costs at Dealer Services.

PIF increased 8.5% or 13 million as of March 31, 2025 compared to March 31, 2024 due to growth at Allstate Protection Plans.

Other revenue increased 50.6% or $43 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher lead generation revenue at Arity.

Intersegment premiums and service fees increased 5.7% or $2 million in the first quarter of 2025 compared to the first quarter of 2024, driven by higher lead generation revenue at Arity.

Claims and claims expense increased 1.9% or $3 million in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by growth at Allstate Protection Plans and increased severity at Dealer Services, partially offset by lower claim severity at Allstate Roadside.

Amortization of DAC increased 10.0% or $29 million in the first quarter of 2025 compared to the first quarter of 2024, driven by growth at Allstate Protection Plans.

Operating costs and expenses increased 32.1% or $75 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to expenses related to growth at Arity and Allstate Protection Plans.

First Quarter 2025 Form 10-Q 57

Premiums written increased 8.4% or $57 million in the second quarter of 2025 and increased 6.7% or $87 million in the first six months of 2025 compared to the same periods of 2024, primarily due to international growth at Allstate Protection Plans.

Adjusted net income increased 9.1% or $5 million in the second quarter of 2025 and increased 5.5% or $6 million in the first six months of 2025 compared to the same periods of 2024, primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses at Arity.

PIF increased 7.4% or 12 million as of June 30, 2025 compared to June 30, 2024 due to growth at Allstate Protection Plans.

Other revenue increased 13.3% or $13 million in the second quarter of 2025 and increased 30.6% or $56 million in the first six months of 2025 compared to the same periods of 2024, primarily due to higher lead generation revenue at Arity.

Intersegment premiums and service fees decreased 7.7% or $3 million in the second quarter of

2025 and decreased 1.4% or $1 million in the first six months of 2025 compared to the same periods of 2024, primarily driven by Allstate Roadside.

Claims and claims expense increased 8.3% or $13 million in the second quarter of 2025 and increased 5.1% or $16 million in the first six months of 2025 compared to the same periods of 2024, primarily driven by growth at Allstate Protection Plans and increased severity at Dealer Services.

Amortization of DAC increased 10.8% or $32 million in the second quarter of 2025 and increased 10.4% or $61 million in the first six months of 2025 compared to the same periods of 2024, driven by growth at Allstate Protection Plans.

Operating costs and expenses increased 17.9% or $44 million in the second quarter of 2025 and increased 24.8% or $119 million in the first six months of 2025 compared to the same periods of 2024, primarily due to expenses related to growth at Allstate Protection Plans and Arity.

Second Quarter 2025 Form 10-Q 61

Segment Results Allstate Health and Benefits

Allstate Health and Benefits Segment

On August 13, 2024, we entered into a share 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, reported within this segment.

The transaction closed on April 1, 2025, and we expect to record a gain on the sale of approximately $625 million in the second quarter of 2025.

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

Goodwill In conjunction with the EVB and group health business dispositions, the Company reallocated goodwill among the components of the Health and Benefits reporting unit using a relative fair value approach.

An interim goodwill impairment test was performed for each of the EVB and group health disposal groups and the goodwill allocated to the retained individual health business.

The interim impairment test did not result in an impairment of goodwill.

The excess of fair value over carrying amount for the retained individual health business was less than 10%.

As of March 31, 2025, the individual health reporting unit had goodwill of $41 million.

On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits business, to StanCorp Financial Group, Inc.

We recorded a gain on the sale of $890 million or $643 million, after-tax in the second quarter of 2025.

Starting in the second quarter of 2025, this segment excludes the employer voluntary benefits results and financial results will not be comparable between periods.

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 we expect to record a gain on the sale of approximately $500 million in the third quarter of 2025.

Starting in the third quarter of 2025, the retained individual health business that was included in the Allstate Health and Benefits segment will no longer be a reportable segment.

Goodwill A goodwill impairment test performed for the retained individual health business in the first quarter of 2025 resulted in an excess of fair value over carrying amount of less than 10%.

Consequently, a goodwill impairment test was also performed in the second quarter of 2025 for this business which did not result in an impairment of goodwill.

As of June 30, 2025, the individual health reporting unit had goodwill of $44 million.

Estimating fair value is a subjective process that involves the use of significant estimates by management.

1 unchanged sentence

Summarized financial information

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

9 unchanged sentences

Adjusted net income $ 4 $ 58 $ 34 $ 114

Benefit ratio (1)

Employer voluntary benefits (1)

$ — $ 28 $ 22 $ 45

Group health (2)

5 unchanged sentences

Individual health (3)

Policies in force as of March 31 (in thousands) 4,169 4,193

(1) Benefit ratio is calculated as accident, health and other policy benefits less interest credited to contractholder funds of $8 million and $9 million for the three months ended March 31, 2025 and 2024, respectively, divided by premiums and contract charges.

(2) Employer voluntary benefits include supplemental life and health products offered through workplace enrollment.

Policies in force as of June 30 (in thousands) 618 4,181

(1) Employer voluntary benefits included supplemental life and health products offered through workplace enrollment.

(2) Group health includes health products and administrative services sold to employers.

(3) Individual health includes short-term medical and other health products sold directly to individuals.

Premiums and contract charges increased 1.9% or $9 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.

Premiums and contract charges decreased 50.4% or $239 million in the second quarter of 2025 and decreased 24.2% or $230 million in the first six months of 2025 compared to the same periods of 2024.

Excluding the results of the EVB business sold on April 1, premiums and contract charges increased 3.1% or $7 million in the second quarter of 2025 and increased 4.6% or $21 million in the first six months of 2025 compared to the same periods of 2024 due to growth in individual health and group health.

Starting in the second quarter of 2025, we significantly reduced the sale of new Medicare supplement products in individual health.

62 www.allstate.com

1 unchanged sentence

Premiums and contract charges

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

3 unchanged sentences

Premiums and contract charges $ 235 $ 474 $ 722 $ 952

Adjusted net income decreased $26 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to increased benefit utilization in group health and individual health, partially offset by lower benefit utilization and expenses in employer voluntary benefits.

Other revenue decreased $3 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to lower third-party commission revenues for the individual health business.

Accident, health and other policy benefits increased 12.5% or $37 million in the first quarter of 2025 compared to the first quarter of 2024, primarily from higher benefit utilization in group health and individual health.

Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 10.

Benefit ratio increased 6.7 points to 66.7 in the first quarter of 2025 compared to 60.0 in the first quarter of 2024, primarily due to higher claims experience across group health and individual health.

Amortization of DAC decreased 11.9% or $5 million in the first quarter of 2025 compared to the first quarter of 2024 primarily driven by employer voluntary benefits.

For information on changes in DAC, see Note 12 of the consolidated financial statements.

Adjusted net income decreased 93.1% or $54 million in the second quarter of 2025 and decreased 70.2% or $80 million in the first six months of 2025 compared to the same periods of 2024.

Excluding the results of the EVB business sold on April 1, adjusted net income decreased 86.7% or $26 million in the second quarter of 2025 and decreased 82.6% or $57 million in the first six months of 2025 compared to the same periods of 2024, due to increased benefit utilization in group health and individual health.

Other revenue decreased 9.9% or $12 million in the second quarter of 2025 and decreased 5.9% or $15 million in the first six months of 2025 compared to the same periods of 2024, primarily due to lower third-party commission revenues for the individual health business.

Accident, health and other policy benefits decreased 35.4% or $103 million in the second quarter

of 2025 and decreased 11.2% or $66 million in the first six months of 2025 compared to the same periods of 2024.

Excluding the results of the EVB business sold on April 1, accident, health and other policy benefits increased 20.5% or $32 million in the second quarter of 2025 and increased 23.5% or $74 million in the first six months of 2025 compared to the same periods of 2024, due to higher benefit utilization in group health and individual health.

Amortization of DAC decreased 81.3% or $26 million in the second quarter of 2025 and decreased 41.9% or $31 million in the first six months of 2025 compared to the same periods of 2024.

Excluding the results of the EVB business sold on April 1, amortization of DAC is flat in the second quarter of 2025 and decreased 7.14% or $1 million in the first six months of 2025 compared to the same periods of 2024.

Operating costs and expenses

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health Individual

Three months ended March 31, 2025

Three months ended June 30, 2025

Non-deferrable commissions

2 unchanged sentences

Total $ — $ 73 $ 76 $ 149

Three months ended March 31, 2024

Three months ended June 30, 2024

Non-deferrable commissions

2 unchanged sentences

Total $ 72 $ 69 $ 83 $ 224

Operating costs and expenses increased $9 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to growth in individual health.

First Quarter 2025 Form 10-Q 59

Portfolio composition and strategy by reporting segment (1)

March 31, 2025

Six months ended June 30, 2025

Non-deferrable commissions

$ 22 $ 54 $ 53 $ 129

Operating costs and expenses

51 88 115 254

Total $ 73 $ 142 $ 168 $ 383

Six months ended June 30, 2024

Non-deferrable commissions

$ 44 $ 53 $ 80 $ 177

Operating costs and expenses

102 84 86 272

Total $ 146 $ 137 $ 166 $ 449

Operating costs and expenses decreased 33.5% or $75 million in the second quarter of 2025 and decreased 14.7% or $66 million in the first six months of 2025 compared to the same periods of 2024.

Excluding the results of the EVB business sold on April 1, operating costs and expenses decreased 2.0% or $3 million in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a decrease in non-deferrable commissions in individual health, partially offset by higher administrative costs.

Excluding the results of the EVB business sold on April 1, operating costs and expenses increased 2.3% or $7 million in the first six months of 2025 compared to the first six months of 2024 primarily due to higher administrative costs, partially offset by lower non-deferrable commissions in individual health.

Second Quarter 2025 Form 10-Q 63

Portfolio composition and strategy by reportable segment (1)

June 30, 2025

($ in millions) Property-Liability Protection Services

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(3) Equity securities are carried at fair value.

The fair value of equity securities held as of March 31, 2025, was $73 million in excess of cost.

These net gains were primarily concentrated in the banking and communications sectors.

Equity securities include $920 million of funds with underlying investments in fixed income securities as of March 31, 2025.

The fair value of equity securities held as of June 30, 2025, was $226 million in excess of cost.

These net gains were primarily concentrated in the technology, banking and communications sectors.

Equity securities include $896 million of funds with underlying investments in fixed income securities as of June 30, 2025.

(4) Short-term investments are carried at fair value.

(5) As of March 31, 2025, $2.07 billion of investments are classified as held for sale.

Investments totaled $74.05 billion as of March 31, 2025, increasing from $72.61 billion as of December 31, 2024, primarily due to positive operating and investment cash flows.

(5) As of June 30, 2025, $320 million of investments are classified as held for sale.

Investments totaled $77.44 billion as of June 30, 2025, increasing from $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows.

Portfolio composition by investment strategy We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects.

As strategies and market conditions evolve, the asset allocation may change.

Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on

enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.

Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate with a majority being limited partnerships.

Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.

Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement

market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate with a majority being limited partnerships.

These investments include investee level expenses, reflecting asset level operating expenses on directly held real estate and other consolidated investments.

Macroeconomic impacts We regularly assess the macroeconomic environment through our integrated Enterprise Risk and Return Management framework.

In the second quarter of 2025, we lowered the allocation of enterprise economic capital to the investment portfolio and implemented a balanced risk reduction strategy.

Actions included reducing public equity securities and high yield bonds and shortening the fixed income portfolio duration.

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Portfolio composition by investment strategy

March 31, 2025

June 30, 2025

($ in millions) Market-

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Total $ 48 $ — $ 48

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Fixed income securities

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Fair value as of

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

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

government and agencies $ 15,712 $ 11,108

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Asset-backed securities (“ABS”) 983 1,145

Mortgage-backed securities (MBS”)

Total fixed income securities $ 54,435 $ 52,747

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In general, securities with NAIC designations of 1 and 2 are considered investment grade and securities with NAIC designations of 3 through 6 are considered below investment grade.

The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings (“Fitch”) or a comparable internal rating.

As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the portfolio includes certain securities that have not yet been designated by the SVO as of each balance sheet date and the categorization of these securities is based on the expected ratings indicated by internal analysis .

As of March 31, 2025, 91.2% of the consolidated fixed income securities portfolio was rated investment grade.

As of June 30, 2025, 92.3% of the consolidated fixed income securities portfolio was rated investment grade.

Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds.

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For further detail on our fixed income portfolio monitoring process, see Note 5 of the condensed consolidated financial statements.

First Quarter 2025 Form 10-Q 61

Second Quarter 2025 Form 10-Q 65

The following table presents total fixed income securities by the applicable NAIC designation and comparable S&P rating.

Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating

March 31, 2025

June 30, 2025

NAIC 1 NAIC 2 NAIC 3

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ABS 882 (1) 24 — 26 —

1,101 16 — — — —

Total fixed income securities $ 33,780 $ 12 $ 16,475 $ 16 $ 2,580 $ (3)

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ABS 1 — 50 11 983 10

— — — — 1,101 16

Total fixed income securities $ 1,448 $ 15 $ 152 $ 12 $ 54,435 $ 52

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Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance.

ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities.

MBS includes residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”).

RMBS is subject to interest rate risk, but unlike other fixed income securities, is additionally subject to prepayment risk from the underlying residential mortgage loans.

RMBS primarily consists of a U.S.

Agency portfolio having collateral issued or guaranteed by U.S.

government agencies.

CMBS investments are primarily traditional conduit transactions collateralized by commercial mortgage

loans, broadly diversified across property types and geographical area.

Equity securities of $2.40 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and REITs.

Exchange traded and mutual funds that have fixed income securities as their underlying investments total $920 million as of March 31, 2025.

Exchange traded and mutual funds that have fixed income securities as their underlying investments total $896 million as of June 30, 2025.

Mortgage loans of $807 million comprise loans secured by first mortgages on developed commercial real estate of $695 million and residential mortgage loans of $112 million.

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For further detail on our mortgage loan portfolio, see Note 5 of the condensed consolidated financial statements.

Limited partnership interests include $7.74 billion of interests in private equity funds, $1.36 billion of interests in real estate funds and $281 million of interests in other funds as of March 31, 2025.

We have commitments to invest additional amounts in limited partnership interests totaling $3.25 billion as of March 31, 2025.

Other investments include $274 million of bank loans, net and $625 million of direct investments in real estate as of March 31, 2025.

Limited partnership interests include $7.58 billion of interests in private equity funds, $1.41 billion of interests in real estate funds and $211 million of interests in other funds as of June 30, 2025.

We have commitments to invest additional amounts in limited partnership interests totaling $3.42 billion as of June 30, 2025.

Other investments include $335 million of bank loans, net and $628 million of direct investments in real estate as of June 30, 2025.

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Unrealized net capital gains (losses)

March 31, December 31,

June 30, December 31,

($ in millions) 2025 2024

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Gross unrealized Fair

March 31, 2025

June 30, 2025

$ 3,881 $ 72 $ (24) $ 3,929

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ABS 973 14 (4) 983

1,085 16 — 1,101

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

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Total fixed income securities $ 53,616 $ 361 $ (1,230) $ 52,747

First Quarter 2025 Form 10-Q 63

Second Quarter 2025 Form 10-Q 67

In general, gross unrealized losses are related to an increase in market yields, which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase.

1 unchanged sentence

Equity securities by sector

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

($ in millions) Cost Over (under) cost Fair

5 unchanged sentences

72 3 75 201 (23) 178

Communications

46 37 83 142 25 167

Consumer goods

9 unchanged sentences

160 71 231 746 88 834

Transportation

8 3 11 27 1 28

Utilities 58 5 63 92 1 93

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Total equity securities $ 2,171 $ 226 $ 2,397 $ 4,329 $ 134 $ 4,463

(1) Other is generally comprised of transportation and communications sectors.

Net investment income

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

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Investment income, before expense $ 823 $ 788 $ 1,748 $ 1,625

Net investment income increased 11.8% or $90 million in the first quarter of 2025, due to higher market-based results.

Market-based investment results continue to benefit from higher investment balances and portfolio repositioning into higher yielding fixed income securities.

Net investment income increased 5.9% or $42 million in the second quarter of 2025 and increased 8.9% or $132 million in the first six months of 2025 compared to the same periods of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results.

Market-based results continue to benefit from higher investment balances.

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Performance-based investment income

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

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Investee level expenses (1)

(11) (14) (21) (24)

Total performance-based income $ 79 $ 107 $ 275 $ 308

(1) Investee level expenses include asset level operating expenses on directly held real estate and other consolidated investments reported in investment expense.

Performance-based investment income decreased 2.5% or $5 million in the first quarter of 2025 compared to the same period of 2024 primarily due to lower private equity valuation increases offset by higher real estate investment results.

Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales.

Performance-based investment income decreased 26.2% or $28 million in the second quarter of 2025 and decreased 10.7% or $33 million in the first six months of 2025 compared to the same periods of 2024, primarily due to lower private equity valuation increases, partially offset by higher real estate investment results.

of the underlying investments and the timing of asset sales.

The Company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements.

As a result, performance-based income in the second quarter of 2025 is primarily comprised of operating and market performance and results of our investments for the three months ended March 31, 2025, and may not reflect economic conditions since the U.S.’s imposition of tariffs on goods imported to the U.S.

Components of net gains (losses) on investments and derivatives and the related tax effect

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

1 unchanged sentence

Credit losses (1)

(4) (16) (80) (131)

Valuation change of equity investments - appreciation (decline):

18 unchanged sentences

(1) 2025 includes losses recorded for variable interests in Reciprocal Exchanges.

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

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

See Note 8 for further details.

(2) Relates to limited partnerships where the underlying assets are predominately public equity securities.

Net losses on investments and derivatives in the first quarter of 2025 primarily related to losses on sales of fixed income securities, valuation losses on equity investments and losses recorded for variable interests in Reciprocal Exchanges.

Net losses on sales in the first quarter of 2025 related primarily to sales of fixed income securities in connection with ongoing portfolio management.

Net losses on valuation change and settlements of derivatives of $19 million in the first quarter of 2025 primarily related to losses on foreign currency contracts used to manage foreign currency risk.

First Quarter 2025 Form 10-Q 65

Net losses on investments and derivatives in the second quarter of 2025 primarily related to losses on sales of fixed income securities and valuation change and settlements of derivatives, partially offset by valuation gains on equity investments.

Net losses in the first six months of 2025 primarily related to losses on sales of fixed income securities, valuation change and settlements of derivatives and losses recorded for

variable interests in Reciprocal Exchanges, partially offset by valuation gains on equity investments.

Net losses on sales in the second quarter and first six months of 2025 related to sales of fixed income securities in connection with ongoing portfolio management and the execution of our risk reduction strategy.

In the second quarter, losses were largely

Second Quarter 2025 Form 10-Q 69

driven by the repositioning of the portfolio into shorter-duration fixed income securities.

Net losses on valuation change and settlements of derivatives of $65 million and $84 million in the second quarter and first six months of 2025, respectively,

primarily related to losses on foreign currency contracts used to manage foreign currency risk, net losses on interest rate futures used to manage duration and losses on credit default contracts due to tightening credit spreads.

Net gains (losses) on performance-based investments and derivatives

Three months ended March 31,

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

($ in millions) 2025 2024 2025 2024

4 unchanged sentences

Total performance-based $ 24 $ (4) $ (4) $ 17

Net losses on performance-based investments and derivatives in the first quarter of 2025 primarily related to decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk.

Net gains on performance-based investments and derivatives in the second quarter of 2025 primarily related to valuation gains on equity investments, partially offset by decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk.

Net losses on performance-based investments and derivatives in the first six months of 2025 primarily related to decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk and credit losses, partially offset by valuation gains on equity investments.

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3 unchanged sentences

Capital resources

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

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

Preferred stock, common stock, treasury stock, retained income and other shareholders’ equity items $ 24,076 $ 22,331

4 unchanged sentences

Ratio of debt to capital resources 25.2 27.4

(1) Includes debt issuance costs of $55 million and $56 million as of March 31, 2025 and December 31, 2024, respectively.

Allstate shareholders’ equity increased in the first three months of 2025, primarily due to net income and lower unrealized net capital losses on investments, partially offset by dividends to shareholders.

In the three months ended March 31, 2025, we paid dividends of $244 million and $29 million related to our common and preferred shares, respectively.

(1) Includes debt issuance costs of $54 million and $56 million as of June 30, 2025 and December 31, 2024, respectively.

Allstate shareholders’ equity increased in the first six months of 2025, primarily due to net income and unrealized net capital gains on investments in 2025 compared to losses at December 31, 2024, partially offset by dividends to shareholders.

In the six months ended June 30, 2025, we paid dividends of $509 million and $59 million related to our common and preferred shares, respectively.

Debt maturities We have $600 million of debt that is scheduled to mature in December 2025.

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Common share repurchases On February 26, 2025, the Board of Directors authorized a new $1.50 billion common share repurchase program that must be completed by September 30, 2026.

As of March 31, 2025, there was $1.40 billion remaining in the $1.50 billion common share repurchase program.

During the first three months of 2025, we repurchased 511 thousand common shares, or 0.2% of total common shares outstanding at December 31, 2024, for $104 million.

Common shareholder dividends On January 2, 2025, we paid a common shareholder dividend of $0.92.

On February 26, 2025, we declared a common shareholder dividend of $1.00 payable on April 1, 2025.

As of June 30, 2025, there was $1.06 billion remaining in the $1.50 billion common share repurchase program.

During the first six months of 2025, we repurchased 2.2 million common shares, or 0.8% of total common shares outstanding at December 31, 2024, for $445 million.

Common shareholder dividends On January 2, 2025 and April 1, 2025, we paid a common shareholder dividend of $0.92 and $1.00, respectively.

On May 28, 2025, we declared a common shareholder dividend of $1.00 payable on July 1, 2025.

Financial ratings and strength Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage.

The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their

respective methodologies.

The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies

and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies.

These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock.

In May 2025, Moody’s affirmed The Allstate Corporation’s (the “Corporation”) senior debt and short-term issuer ratings of A3 and P-2, respectively, and Allstate Insurance Company’s (“AIC”) insurance financial strength rating of Aa3.

The outlook for the ratings changed from negative to stable.

In May 2025, S&P affirmed the Corporation's senior debt and short-term issuer ratings of BBB+ and A-2, respectively, and AIC's insurance financial strength rating of A+.

The outlook for the ratings is stable.

There have been no changes to any of our ratings from A.M.

Best, S&P or Moody’s since December 31, 2024.

Best since December 31, 2024.

Liquidity sources and uses We actively manage our financial position and liquidity levels in light of changing market, economic and business conditions.

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Additionally, we have existing intercompany agreements in place that facilitate liquidity management across the Company to enhance flexibility.

The Corporation is party to an Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) with certain subsidiaries, which includes, but is not limited to Allstate Insurance Company (“AIC”).

The Corporation is party to an Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) with certain subsidiaries, which includes, but is not limited to AIC.

The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general corporate purposes.

2 unchanged sentences

The maximum amount of potential funding under each of these agreements is $1.00 billion.

In addition to the Liquidity Agreement, the Corporation also has an intercompany loan agreement with certain of its subsidiaries, which includes, but is not limited to, AIC.

In addition to the Liquidity Agreement, the Corporation also has an intercompany loan agreement

Second Quarter 2025 Form 10-Q 71

Capital Resources and Liquidity

with certain of its subsidiaries, which includes, but is not limited to, AIC.

The amount of intercompany loans available to the Corporation’s subsidiaries is at the discretion of the Corporation.

1 unchanged sentence

The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings.

Parent company capital capacity At the parent holding company level, we have deployable assets

First Quarter 2025 Form 10-Q 67

Capital Resources and Liquidity

totaling $2.99 billion as of March 31, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.

The proceeds from the EVB disposition will increase deployable assets at the parent holding company level.

Parent company capital capacity At the parent holding company level, we have deployable assets totaling $3.98 billion as of June 30, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.

The proceeds from the EVB disposition increased deployable assets at the parent holding company level.

In the third quarter of 2025, the proceeds from the group health disposition that closed on July 1, 2025, will increase deployable assets at the parent holding company level.

The earnings capacity of the operating subsidiaries is the primary source of capital generation for the Corporation.

As of March 31, 2025, we held $21.77 billion of cash, U.S.

As of June 30, 2025, we held $28.06 billion of cash, U.S.

government and agencies fixed income securities, public equity securities and short-term investments, which we would expect to be able to liquidate within one week.

No intercompany capital transactions from insurance companies were paid in the first three months of 2025.

Based on the greater of 2024 statutory net income or 10% of actual December 31, 2024 statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2026, is estimated to be $3.95 billion, less dividends paid during the preceding twelve months measured at that point in time.

In the first three months of 2025, no dividends have been paid.

In the first six months of 2025, no dividends have been paid.

Dividends may not be paid or declared on our common stock and shares of common stock may not be repurchased unless the full dividends for the latest completed dividend period on our preferred stock have been declared and paid or provided for.

The terms of our outstanding subordinated debentures also prohibit us from declaring or paying any dividends or distributions on our common or preferred stock or redeeming, purchasing, acquiring, or making liquidation payments on our common stock or preferred stock if we have elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions.

In the first three months of 2025, we did not defer interest payments on the subordinated debentures.

In the first six months of 2025, we did not defer interest payments on the subordinated debentures.

Additional resources to support liquidity are as follows:

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The facility is fully subscribed among 11 lenders with the largest commitment being $95 million.

The commitments of the lenders are several and no lender is responsible for any other lender’s commitment if such lender fails to make a loan under the facility.

The commitments of the lenders are several and no lender is responsible for any other lender’s

commitment if such lender fails to make a loan under the facility.

This facility contains an increase provision that would allow up to an additional $500 million of borrowing, subject to the lenders’ commitment.

This facility has a financial covenant requiring that we not exceed a 37.5% debt to capitalization ratio as defined in the agreement.

This ratio was 20.7% as of March 31, 2025.

Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are

based on the ratings of our senior unsecured, unguaranteed long-term debt.

This ratio was 19.7% as of June 30, 2025.

Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of our senior unsecured, unguaranteed long-term debt.

There were no borrowings under the credit facility during 2025.

• To cover short-term cash needs, the Corporation has access to a commercial paper facility with a borrowing capacity limited to any undrawn credit facility balance up to $750 million.

• As of March 31, 2025, there were no balances outstanding for the credit facility or the commercial paper facility and therefore the remaining borrowing capacity was $750 million.

• As of June 30, 2025, there were no balances outstanding for the credit facility or the commercial paper facility, and therefore the remaining borrowing capacity was $750 million.

• The Corporation has access to a universal shelf registration statement with the Securities and Exchange Commission that was filed on April 30, 2024 and expires in 2027.

We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 635 million shares of treasury stock as of March 31, 2025), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.

We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 636 million shares of treasury stock as of June 30, 2025), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.

The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.

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Additional information concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K.

First Quarter 2025 Form 10-Q 69

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis