ALLSTATE CORP 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview The following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the condensed consolidated financial statements and related notes thereto found under Part I. Item 1. contained herein, and with the discussion, analysis, consolidated financial statements and notes thereto in Part I. Item 1. and Part II. Item 7. and Item 8. of The Allstate Corporation annual report on Form 10-K for 2024, filed February 24, 2025. Further analysis of our insurance segments is provided in the Property-Liability Operations and Segment Results sections, including Allstate Protection, Run-off Property-Liability, Protection Services and Allstate Health and Benefits, of Management’s Discussion and Analysis (“MD&A”). The segments are consistent with the way in which the chief operating decision maker reviews financial performance and makes decisions about the allocation of resources. Measuring segment profit or loss The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments. We use these measures in our evaluation of results of operations to analyze profitability. Underwriting income is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), amortization of deferred policy acquisition costs (“DAC”), operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, as determined using accounting principles generally accepted in the United States of America (“GAAP”). Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding: • Net gains and losses on investments and derivatives • Pension and other postretirement remeasurement gains and losses • Amortization or impairment of purchased intangibles • Gain or loss on disposition • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years • Income tax expense or benefit on reconciling items Macroeconomic impacts Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, conflict in the Middle East, the Russia/Ukraine conflict, supply chain disruptions and labor shortages. Tariffs Beginning on April 2, 2025, the U.S. government announced additional tariffs on goods imported to the U.S. 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 • 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. Corporate strategy Our strategy has two components: increase personal property-liability market share and expand protection offerings by leveraging the Allstate brand, customer base and capabilities. Transformative Growth is about creating a business model, capabilities and culture that continually transform to better serve customers. This is done by providing affordable, simple and connected protection through multiple distribution methods. The ultimate objective is to enhance customer value to drive growth in all businesses. In the personal property-liability businesses, this has five key components: • Improving customer value • Expanding customer access • Increasing sophistication and investment in customer acquisition • Deploying new technology ecosystems • Driving organizational transformation Second Quarter 2025 Form 10-Q 45 We are expanding Protection Services businesses internationally and by leveraging the Allstate brand, customer base and capabilities. Dispositions 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 $500 million in the third quarter of 2025. See Note 3 of the condensed consolidated financial statements for further information on the employer voluntary benefits and group health dispositions. Highlights Q1 Q2 Consolidated net income applicable to common shareholders ($ in millions) 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 $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 $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 $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 $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 $72.35 as of December 31, 2024. Return on average Allstate common shareholders’ equity for the twelve months ended June 30, 2025, was 29.6%, an increase of 10.3 points from 19.3% for the twelve months ended June 30, 2024. The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending June 30, 2025. Summarized consolidated financial results Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Revenues Property and casualty insurance premiums $ 15,041 $ 13,952 $ 29,739 $ 27,464 Accident and health insurance premiums and contract charges 235 474 722 952 Other revenue 747 679 1,509 1,348 Net investment income 754 712 1,608 1,476 Net gains (losses) on investments and derivatives (144) (103) (493) (267) Total revenues 16,633 15,714 33,085 30,973 Costs and expenses Property and casualty insurance claims and claims expense (10,249) (10,801) (21,064) (20,302) Accident, health and other policy benefits (188) (291) (521) (587) Amortization of deferred policy acquisition costs (2,076) (2,001) (4,163) (3,940) Operating, restructuring and interest expenses (2,250) (2,130) (4,611) (4,122) Pension and other postretirement remeasurement gains (losses) — 9 (78) 11 Amortization of purchased intangibles (57) (70) (116) (139) Total costs and expenses (14,820) (15,284) (30,553) (29,079) Gain on disposition of operations 890 — 890 — Income from operations before income tax expense 2,703 430 3,422 1,894 Income tax expense (604) (83) (727) (349) Net income 2,099 347 2,695 1,545 Less: Net (loss) income attributable to noncontrolling interest (10) 16 (9) (4) Net income attributable to Allstate 2,109 331 2,704 1,549 Preferred stock dividends (30) (30) (59) (59) Net income applicable to common shareholders $ 2,079 $ 301 $ 2,645 $ 1,490 Segment highlights 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 $1.89 billion. The effective tax rate for the six months ended 2024 was lower than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, shared-based payments and tax-exempt interest income. Reconciliation of the statutory federal income tax rate to the effective income tax rate Three months ended June 30, Six months ended June 30, ($ 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. tax code. 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. 48 www.allstate.com Property-Liability Operations Property-Liability Operations Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources. We do not allocate Property-Liability investment income, net gains and losses on investments and derivatives, or assets to the Allstate Protection and Run-off Property-Liability segments. Management reviews assets at the Property-Liability level for decision-making purposes. GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows: • Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates. • Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned. • Combined ratio: the sum of the loss ratio and the expense ratio. We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned: • Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense • Effect of prior year reserve reestimates on combined ratio • Effect of amortization of purchased intangibles on combined ratio • Effect of restructuring and related charges on combined ratio • Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment Premium measures and statistics are used to analyze our premium trends and are calculated as follows: • PIF : policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Lender-placed policies are excluded from policy counts because relationships are with the lenders. • New issued applications : item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. • Average premium - gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line. • Implemented rate changes: represents the impact in the locations (U.S. 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. Second Quarter 2025 Form 10-Q 49 Property-Liability Operations Underwriting results Three months ended June 30, Six months ended June 30, ($ in millions, except ratios) 2025 2024 2025 2024 Premiums written $ 15,047 $ 14,279 $ 29,344 $ 27,462 Premiums earned $ 14,346 $ 13,339 $ 28,373 $ 26,239 Other revenue 504 441 992 871 Claims and claims expense (10,084) (10,649) (20,744) (19,998) Amortization of DAC (1,742) (1,673) (3,474) (3,281) Other costs and expenses (1,685) (1,537) (3,386) (2,954) Restructuring and related charges (13) (15) (29) (22) Amortization of purchased intangibles (46) (51) (92) (102) Underwriting income (loss) $ 1,280 $ (145) $ 1,640 $ 753 Catastrophe losses Catastrophe losses, excluding reserve reestimates $ 1,984 $ 2,258 $ 4,202 $ 3,151 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 Loss ratio 70.3 79.8 73.1 76.2 Expense ratio (2) 20.8 21.3 21.1 20.9 Combined ratio 91.1 101.1 94.2 97.1 Effect of catastrophe losses on combined ratio 13.9 15.9 14.8 10.9 Effect of prior year reserve reestimates on combined ratio (2.6) (1.5) (2.2) (1.4) Effect of catastrophe losses included in prior year reserve reestimates on combined ratio — (1.0) — (1.1) 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) Favorable reserve reestimates are shown in parentheses. (2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation. 50 www.allstate.com Allstate Protection Segment Results Allstate Protection Segment Underwriting results Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Premiums written $ 15,047 $ 14,279 $ 29,344 $ 27,462 Premiums earned $ 14,346 $ 13,339 $ 28,373 $ 26,239 Other revenue 504 441 992 871 Claims and claims expense (10,082) (10,647) (20,739) (19,992) Amortization of DAC (1,742) (1,673) (3,474) (3,281) Other costs and expenses (1,684) (1,536) (3,384) (2,952) Restructuring and related charges (13) (15) (29) (22) Amortization of purchased intangibles (46) (51) (92) (102) Underwriting income (loss) $ 1,283 $ (142) $ 1,647 $ 761 Catastrophe losses $ 1,990 $ 2,120 $ 4,192 $ 2,851 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 June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Auto $ 1,331 $ 370 $ 2,147 $ 721 Homeowners (76) (375) (527) 189 Other personal lines (11) (55) (76) (48) Commercial lines (17) (138) (1) (208) Other business lines (1) 54 52 95 100 Answer Financial 2 4 9 7 Total $ 1,283 $ (142) $ 1,647 $ 761 (1) Represents commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products and lender-placed products. Premium measures and statistics include PIF, new issued applications and average premiums to analyze our premium trends. Premiums written is the amount of premiums charged for policies issued during a reporting period. Premiums are considered earned and are included in the financial results on a pro-rata basis over the policy period. The portion of premiums written applicable to the unexpired term of the policies is recorded as unearned premiums on our Condensed Consolidated Statements of Financial Position. Premiums written Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Auto $ 9,533 $ 9,284 $ 19,381 $ 18,641 Homeowners 4,395 3,845 7,848 6,719 Other personal lines 865 845 1,594 1,505 Commercial lines 100 150 194 307 Other business lines 154 155 327 290 Total premiums written $ 15,047 $ 14,279 $ 29,344 $ 27,462 Premiums earned Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Auto $ 9,528 $ 9,079 $ 18,875 $ 17,857 Homeowners 3,771 3,255 7,428 6,409 Other personal lines 779 701 1,520 1,360 Commercial lines 104 158 217 327 Other business lines 164 146 333 286 Total premiums earned $ 14,346 $ 13,339 $ 28,373 $ 26,239 Reconciliation of premiums written to premiums earned Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Total premiums written $ 15,047 $ 14,279 $ 29,344 $ 27,462 (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 June 30, (In thousands) 2025 2024 Auto 25,243 25,124 Homeowners 7,596 7,426 Other personal lines 4,885 4,871 Commercial lines 176 256 Total 37,900 37,677 52 www.allstate.com 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 • 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 June 30, Six months ended June 30, 2025 2024 Change 2025 2024 Change New issued applications (in thousands) Allstate Protection by channel Exclusive agency 764 628 21.7 % 1,512 1,233 22.6 % Independent agency 685 562 21.9 1,371 1,117 22.7 Direct 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 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 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 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. 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 June 30, Six months ended June 30, 2025 2024 Change 2025 2024 Change New issued applications (in thousands) Allstate Protection by channel Exclusive agency 251 241 4.1 % 483 459 5.2 % Independent agency 48 61 (21.3) 95 109 (12.8) Direct 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 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. Combined ratios Loss ratio Expense ratio (2) Combined ratio 2025 2024 2025 2024 2025 2024 Three months ended June 30, Auto 65.0 74.2 21.0 21.7 86.0 95.9 Homeowners 81.2 90.3 20.8 21.2 102.0 111.5 Other personal lines (1) 86.1 92.0 15.3 15.8 101.4 107.8 Commercial lines 84.6 158.8 31.7 28.5 116.3 187.3 Other business lines 38.4 49.3 28.7 15.1 67.1 64.4 Total 70.3 79.8 20.8 21.3 91.1 101.1 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 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. 54 www.allstate.com Allstate Protection Segment Results Loss ratios 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 June 30, Auto 65.0 74.2 2.2 3.9 (4.5) (2.0) (0.2) (0.1) Homeowners 81.2 90.3 42.8 49.6 0.8 (5.8) 0.5 (3.9) Other personal lines 86.1 92.0 19.3 17.3 3.9 8.7 0.3 0.2 Commercial lines 84.6 158.8 1.9 3.2 8.6 67.7 1.9 (1.2) Other business lines 38.4 49.3 7.3 15.1 (6.1) (0.7) — — Total 70.3 79.8 13.9 15.9 (2.6) (1.5) — (1.0) 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 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 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. We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. 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 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. The nature and level of catastrophes in any period cannot be reliably predicted. Loss estimates are generally based on claim adjuster inspections and the application of historical loss development factors. Our loss estimates are calculated in accordance with the coverage provided by our policies. 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. 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. Over time, we have limited our aggregate insurance exposure to catastrophe losses in certain regions of the country that are subject to high levels of natural catastrophes by managing coverage, number of policies in force, utilizing reinsurance and participating in various state facilities. Catastrophe losses by the type of event 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 Wildfires 1 2 1 20 3 1,088 3 29 Freeze/other events — — — — — — 1 161 Prior year reserve reestimates (1) (1) (138) 50 (300) Prior year aggregate reinsurance recoveries 7 — (60) — Current year aggregate reinsurance recoveries 8 — (48) — Prior quarter reserve reestimates (52) 39 — — Total catastrophe losses 37 $ 1,990 43 $ 2,120 53 $ 4,192 (2) 64 $ 2,851 (1) Includes reinsurance recoveries. (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 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. 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. U.S. 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 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. Item 2. 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 $372 million and $626 million in the second quarter and first six months of 2025, respectively, primarily due to favorable reserve reestimates in personal auto lines. For a more detailed discussion on reinsurance and reserve reestimates, see Note 9 of the condensed consolidated financial statements. Prior year reserve reestimates Three months ended June 30, Six months ended June 30, Prior year reserve reestimates (1) Effect on combined ratio (2) Prior year reserve reestimates (1) Effect on combined ratio (2) ($ in millions, except ratios) 2025 2024 2025 2024 2025 2024 2025 2024 Auto $ (431) $ (180) (3.0) (1.3) $ (680) $ (254) (2.4) (1.0) Homeowners 30 (191) 0.2 (1.4) 22 (380) 0.1 (1.4) Other personal lines 30 61 0.2 0.4 76 113 0.3 0.4 Commercial lines 9 107 0.1 0.8 (19) 158 (0.1) 0.6 Other business lines (10) (1) (0.1) — (25) 4 (0.1) — Total Allstate Protection $ (372) $ (204) (2.6) (1.5) $ (626) $ (359) (2.2) (1.4) (1) Favorable reserve reestimates are shown in parentheses. (2) Ratios are calculated using Allstate Protection premiums earned. Second Quarter 2025 Form 10-Q 57 Segment Results Allstate Protection 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 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 Advertising expense 442 402 40 965 685 280 Other costs and expenses, net of other revenue 738 693 45 1,427 1,396 31 Amortization of purchased intangibles 46 51 (5) 92 102 (10) Restructuring and related charges 13 15 (2) 29 22 7 Total underwriting expenses $ 2,981 $ 2,834 $ 147 $ 5,987 $ 5,486 $ 501 Premiums earned $ 14,346 $ 13,339 $ 1,007 $ 28,373 $ 26,239 $ 2,134 Expense ratio Amortization of DAC 12.1 12.6 (0.5) 12.2 12.5 (0.3) Advertising expense 3.1 3.0 0.1 3.4 2.6 0.8 Other costs and expenses, net of other revenue 5.2 5.2 — 5.1 5.3 (0.2) Subtotal 20.4 20.8 (0.4) 20.7 20.4 0.3 Amortization of purchased intangibles 0.3 0.4 (0.1) 0.3 0.4 (0.1) Restructuring and related charges 0.1 0.1 — 0.1 0.1 — Total expense ratio 20.8 21.3 (0.5) 21.1 20.9 0.2 58 www.allstate.com Run-off Property-Liability Segment Results Run-off Property-Liability Segment Underwriting results ($ in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Claims and claims expense $ (2) $ (2) $ (5) $ (6) Operating costs and expenses (1) (1) (2) (2) Underwriting loss $ (3) $ (3) $ (7) $ (8) Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance ($ in millions) June 30, 2025 December 31, 2024 Asbestos claims Gross reserves $ 1,070 $ 1,124 Reinsurance (332) (350) Net reserves 738 774 Environmental claims Gross reserves 303 320 Reinsurance (58) (61) Net reserves 245 259 Other run-off claims Gross reserves 407 439 Reinsurance (30) (58) Net reserves 377 381 Total Gross reserves 1,780 1,883 Reinsurance (420) (469) Net reserves $ 1,360 $ 1,414 Reserves by type of exposure before and after the effects of reinsurance ($ in millions) June 30, 2025 December 31, 2024 Direct excess commercial insurance Gross reserves $ 1,021 $ 1,082 Reinsurance (342) (363) Net reserves 679 719 Assumed reinsurance coverage Gross reserves 566 581 Reinsurance (52) (54) Net reserves 514 527 Direct primary commercial insurance Gross reserves 106 133 Reinsurance (25) (51) Net reserves 81 82 Unallocated loss adjustment expenses Gross reserves 87 87 Reinsurance (1) (1) Net reserves 86 86 Total Gross reserves 1,780 1,883 Reinsurance (420) (469) Net reserves $ 1,360 $ 1,414 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”) June 30, 2025 December 31, 2024 Case IBNR Case IBNR Direct excess commercial insurance Gross reserves (1) 63 % 37 % 58 % 42 % Ceded (2) 70 30 62 38 Assumed reinsurance coverage Gross reserves 36 64 34 66 Ceded 54 46 51 49 Direct primary commercial insurance Gross reserves 37 63 54 46 Ceded 74 26 87 13 (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 June 30, Six months ended June 30, 2025 2024 2025 2024 Direct excess commercial insurance Gross (1) $ 34 $ 16 $ 60 $ 32 Ceded (2) (10) (7) (21) (13) Assumed reinsurance coverage Gross 10 21 16 27 Ceded (1) (2) (1) (2) Direct primary commercial insurance Gross 1 2 2 3 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 $10 million and $16 million for the second quarter and first six months of 2025, respectively, compared to $15 million and $26 million for the second quarter and first six months of 2024, respectively. 60 www.allstate.com Protection Services Segment Results Protection Services Segment Summarized financial information ($ in millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Premiums written $ 733 $ 676 $ 1,390 $ 1,303 Revenues Premiums $ 695 $ 613 $ 1,366 $ 1,225 Other revenue 111 98 239 183 Intersegment insurance premiums and service fees (1) 36 39 73 74 Net investment income 25 23 49 44 Costs and expenses Claims and claims expense (170) (157) (331) (315) Amortization of DAC (328) (296) (646) (585) Operating costs and expenses (290) (246) (599) (480) Restructuring and related charges (1) — (1) (1) Income tax expense on operations (18) (19) (35) (36) Adjusted net income $ 60 $ 55 $ 115 $ 109 Allstate Protection Plans $ 51 $ 41 $ 96 $ 81 Allstate Dealer Services 4 6 8 12 Allstate Roadside 11 8 22 19 Arity (8) (2) (14) (6) Allstate Identity Protection 2 2 3 3 Adjusted net income $ 60 $ 55 $ 115 $ 109 Policies in force Allstate Protection Plans 162,315 151,172 Allstate Dealer Services 3,697 3,733 Allstate Roadside 988 604 Allstate Identity Protection 2,669 2,510 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 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 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. 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. 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 $44 million. Estimating fair value is a subjective process that involves the use of significant estimates by management. Market declines and other events impacting the fair value, including discount rates, operating results, investment returns and strategies and growth rate assumptions or increases in the level of equity required to support the business could result in goodwill impairment. Summarized financial information Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Revenues Accident and health insurance premiums and contract charges $ 235 $ 474 $ 722 $ 952 Other revenue 109 121 240 255 Net investment income 5 25 30 48 Costs and expenses Accident, health and other policy benefits (188) (291) (521) (587) Amortization of DAC (6) (32) (43) (74) Operating costs and expenses (149) (224) (383) (449) Restructuring and related charges (1) — (1) (1) Income tax expense on operations (1) (15) (10) (30) Adjusted net income $ 4 $ 58 $ 34 $ 114 Employer voluntary benefits (1) $ — $ 28 $ 22 $ 45 Group health (2) 9 28 21 56 Individual health (3) (5) 2 (9) 13 Adjusted net income $ 4 $ 58 $ 34 $ 114 Policies in force Employer voluntary benefits (1) — 3,577 Group health (2) 136 148 Individual health (3) 482 456 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 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 $21 million in the first six months of 2025 compared to the same periods of 2024 due to growth in individual health and group health. Starting in the second quarter of 2025, we significantly reduced the sale of new Medicare supplement products in individual health. 62 www.allstate.com Allstate Health and Benefits Segment Results Premiums and contract charges Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Employer voluntary benefits $ — $ 246 $ 243 $ 494 Group health 123 120 247 238 Individual health 112 108 232 220 Premiums and contract charges $ 235 $ 474 $ 722 $ 952 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 $1 million in the first six months of 2025 compared to the same periods of 2024. Operating costs and expenses ($ in millions) Employer voluntary benefits Group health Individual health Total Three months ended June 30, 2025 Non-deferrable commissions $ — $ 27 $ 22 $ 49 Operating costs and expenses — 46 54 100 Total $ — $ 73 $ 76 $ 149 Three months ended June 30, 2024 Non-deferrable commissions $ 21 $ 27 $ 38 $ 86 Operating costs and expenses 51 42 45 138 Total $ 72 $ 69 $ 83 $ 224 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 $7 million in the first six months of 2025 compared to the first six months of 2024 primarily due to higher administrative costs, partially offset by lower non-deferrable commissions in individual health. Second Quarter 2025 Form 10-Q 63 Investments Investments Portfolio composition and strategy by reportable segment (1) June 30, 2025 ($ in millions) Property-Liability Protection Services Allstate Health and Benefits (5) Corporate and Other Total Fixed income securities (2) $ 49,247 $ 1,952 $ 175 $ 3,061 $ 54,435 Equity securities (3) 1,733 208 — 456 2,397 Mortgage loans, net 807 — — — 807 Limited partnership interests 9,186 — — 8 9,194 Short-term investments (4) 8,894 219 66 461 9,640 Other investments, net 964 — — — 964 Total $ 70,831 $ 2,379 $ 241 $ 3,986 $ 77,437 Percent to total 91.5 % 3.1 % 0.3 % 5.1 % 100.0 % Market-based $ 60,758 $ 2,379 $ 241 $ 3,679 $ 67,057 Performance-based 10,073 — — 307 10,380 Total $ 70,831 $ 2,379 $ 241 $ 3,986 $ 77,437 (1) Balances reflect the elimination of related-party investments between segments. (2) Fixed income securities are carried at fair value. Amortized cost, net for these securities was $49.20 billion, $1.95 billion, $176 million, $3.06 billion and $54.38 billion for Property-Liability, Protection Services, Allstate Health and Benefits, Corporate and Other, and in total, respectively. (3) Equity securities are carried at fair value. 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 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 $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows. Portfolio composition by investment strategy We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects. As strategies and market conditions evolve, the asset allocation may change. Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities. Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate with a majority being limited partnerships. These investments include investee level expenses, reflecting asset level operating expenses on directly held real estate and other consolidated investments. Macroeconomic impacts We regularly assess the macroeconomic environment through our integrated Enterprise Risk and Return Management framework. In the second quarter of 2025, we lowered the allocation of enterprise economic capital to the investment portfolio and implemented a balanced risk reduction strategy. Actions included reducing public equity securities and high yield bonds and shortening the fixed income portfolio duration. 64 www.allstate.com Investments Portfolio composition by investment strategy June 30, 2025 ($ in millions) Market- based Performance-based Total Fixed income securities $ 54,295 $ 140 $ 54,435 Equity securities 1,786 611 2,397 Mortgage loans, net 807 — 807 Limited partnership interests 211 8,983 9,194 Short-term investments 9,639 1 9,640 Other investments, net 319 645 964 Total $ 67,057 $ 10,380 $ 77,437 Percent to total 86.6 % 13.4 % 100.0 % Unrealized net capital gains and losses Fixed income securities $ 52 $ — $ 52 Short-term investments (2) — (2) Other investments (2) — (2) Total $ 48 $ — $ 48 Fixed income securities Fixed income securities by type Fair value as of ($ in millions) June 30, 2025 December 31, 2024 U.S. government and agencies $ 15,712 $ 11,108 Municipal 7,286 8,842 Corporate 27,962 30,192 Foreign government 1,391 1,364 Asset-backed securities (“ABS”) 983 1,145 Mortgage-backed securities (MBS”) 1,101 96 Total fixed income securities $ 54,435 $ 52,747 Fixed income securities are rated by third-party credit rating agencies or are internally rated. The Securities Valuation Office (“SVO”) of the National Association of Insurance Commissioners (“NAIC”) evaluates the fixed income securities of insurers for regulatory reporting and capital assessment purposes. The NAIC assigns securities to one of six credit quality categories defined as “NAIC designations”. 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 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 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. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Our initial investment decisions and ongoing monitoring procedures for fixed income securities are based on a due diligence process which includes, but is not limited to, an assessment of the credit quality, sector, structure and liquidity risks of each issuer. Fixed income portfolio monitoring is a comprehensive process to identify and evaluate each fixed income security that may require a credit loss allowance. The process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. For further detail on our fixed income portfolio monitoring process, see Note 5 of the condensed consolidated financial statements. Second Quarter 2025 Form 10-Q 65 Investments 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 June 30, 2025 NAIC 1 NAIC 2 NAIC 3 A and above BBB BB ($ in millions) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) U.S. government and agencies $ 15,712 $ 72 $ — $ — $ — $ — Municipal 7,182 (163) 102 (4) — — Corporate Public 5,581 68 12,769 7 547 (22) Privately placed 1,931 14 3,580 13 2,007 19 Total corporate 7,512 82 16,349 20 2,554 (3) Foreign government 1,391 6 — — — — ABS 882 (1) 24 — 26 — MBS 1,101 16 — — — — Total fixed income securities $ 33,780 $ 12 $ 16,475 $ 16 $ 2,580 $ (3) NAIC 4 NAIC 5-6 Total B CCC and lower Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) U.S. government and agencies $ — $ — $ — $ — $ 15,712 $ 72 Municipal — — 2 2 7,286 (165) Corporate Public 109 1 — — 19,006 54 Privately placed 1,338 14 100 (1) 8,956 59 Total corporate 1,447 15 100 (1) 27,962 113 Foreign government — — — — 1,391 6 ABS 1 — 50 11 983 10 MBS — — — — 1,101 16 Total fixed income securities $ 1,448 $ 15 $ 152 $ 12 $ 54,435 $ 52 Municipal bonds , including tax-exempt and taxable securities, include general obligations of state and local issuers and revenue bonds. Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by public entities in unregistered form. ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. 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 $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. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 5 of the condensed consolidated financial statements. 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 $628 million of direct investments in real estate as of June 30, 2025. 66 www.allstate.com Investments Unrealized net capital gains (losses) June 30, December 31, ($ in millions) 2025 2024 U.S. government and agencies $ 72 $ (315) Municipal (165) (143) Corporate 113 (438) Foreign government 6 12 ABS 10 15 MBS 16 — Fixed income securities 52 (869) Short-term investments (2) (2) Derivatives (2) (2) Investments classified as held for sale 1 (110) Unrealized net capital gains and losses, pre-tax $ 49 $ (983) Gross unrealized gains (losses) on fixed income securities by type and sector ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses June 30, 2025 Corporate Banking $ 3,881 $ 72 $ (24) $ 3,929 Basic industry 908 11 (11) 908 Capital goods 2,539 50 (33) 2,556 Communications 2,152 35 (43) 2,144 Consumer goods (cyclical and non-cyclical) 5,952 95 (72) 5,975 Energy 2,477 42 (24) 2,495 Financial services 2,172 33 (30) 2,175 Technology 2,721 39 (51) 2,709 Transportation 724 11 (8) 727 Utilities 3,936 79 (47) 3,968 Other 387 3 (14) 376 Total corporate fixed income portfolio 27,849 470 (357) 27,962 U.S. government and agencies 15,640 86 (14) 15,712 Municipal 7,451 29 (194) 7,286 Foreign government 1,385 18 (12) 1,391 ABS 973 14 (4) 983 MBS 1,085 16 — 1,101 Total fixed income securities $ 54,383 $ 633 $ (581) $ 54,435 December 31, 2024 Corporate Banking $ 4,194 $ 38 $ (63) $ 4,169 Basic industry 833 6 (21) 818 Capital goods 2,706 25 (62) 2,669 Communications 2,364 16 (73) 2,307 Consumer goods (cyclical and non-cyclical) 6,674 51 (165) 6,560 Energy 2,771 32 (50) 2,753 Financial services 2,104 17 (53) 2,068 Technology 2,613 18 (94) 2,537 Transportation 815 7 (19) 803 Utilities 5,125 56 (89) 5,092 Other 431 6 (21) 416 Total corporate fixed income portfolio 30,630 272 (710) 30,192 U.S. government and agencies 11,423 15 (330) 11,108 Municipal 8,985 33 (176) 8,842 Foreign government 1,352 22 (10) 1,364 ABS 1,130 19 (4) 1,145 MBS 96 — — 96 Total fixed income securities $ 53,616 $ 361 $ (1,230) $ 52,747 Second Quarter 2025 Form 10-Q 67 Investments In general, gross unrealized losses are related to an increase in market yields, which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase. Similarly, gross unrealized gains reflect a decrease in market yields since the time of initial purchase. Equity securities by sector June 30, 2025 December 31, 2024 ($ in millions) Cost Over (under) cost Fair value Cost Over (under) cost Fair value Banking $ 34 $ 41 $ 75 $ 119 $ 41 $ 160 Basic industry 12 3 15 39 (2) 37 Capital goods 72 3 75 201 (23) 178 Communications 46 37 83 142 25 167 Consumer goods 87 (8) 79 462 (25) 437 Energy 37 5 42 88 1 89 Financial services 225 15 240 332 6 338 Funds Equities 352 25 377 1,077 22 1,099 Fixed income 896 — 896 764 (14) 750 Other 77 3 80 75 (2) 73 Total funds 1,325 28 1,353 1,916 6 1,922 REITs 102 25 127 159 17 176 Technology 160 71 231 746 88 834 Transportation 8 3 11 27 1 28 Utilities 58 5 63 92 1 93 Other 5 (2) 3 6 (2) 4 Total equity securities $ 2,171 $ 226 $ 2,397 $ 4,329 $ 134 $ 4,463 Net investment income Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Fixed income securities $ 602 $ 571 $ 1,210 $ 1,097 Equity securities 17 18 37 33 Mortgage loans 9 9 19 18 Limited partnership interests 74 103 268 302 Short-term investments 97 62 169 129 Other investments 24 25 45 46 Investment income, before expense 823 788 1,748 1,625 Investment expense Investee level expenses (11) (14) (21) (24) Securities lending expense (21) (27) (43) (52) Operating costs and expenses (37) (35) (76) (73) Total investment expense (69) (76) (140) (149) Net investment income $ 754 $ 712 $ 1,608 $ 1,476 Property-Liability $ 687 $ 643 $ 1,470 $ 1,345 Protection Services 25 23 49 44 Allstate Health and Benefits 5 25 30 48 Corporate and Other 37 21 59 39 Net investment income $ 754 $ 712 $ 1,608 $ 1,476 Market-based $ 733 $ 667 $ 1,452 $ 1,293 Performance-based 90 121 296 332 Investment income, before expense $ 823 $ 788 $ 1,748 $ 1,625 Net investment income increased 5.9% or $42 million in the second quarter of 2025 and increased 8.9% or $132 million in the first six months of 2025 compared to the same periods of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results. Market-based results continue to benefit from higher investment balances. 68 www.allstate.com Investments Performance-based investment income Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Private equity $ 74 $ 119 $ 177 $ 315 Real estate 16 2 119 17 Total performance-based income before investee level expenses $ 90 $ 121 $ 296 $ 332 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 26.2% or $28 million in the second quarter of 2025 and decreased 10.7% or $33 million in the first six months of 2025 compared to the same periods of 2024, primarily due to lower private equity valuation increases, partially offset by higher real estate investment results. Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The Company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. As a result, performance-based income in the second quarter of 2025 is primarily comprised of operating and market performance and results of our investments for the three months ended March 31, 2025, and may not reflect economic conditions since the U.S.’s imposition of tariffs on goods imported to the U.S. Components of net gains (losses) on investments and derivatives and the related tax effect Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Sales $ (245) $ (90) $ (382) $ (201) Credit losses (1) (4) (16) (80) (131) Valuation change of equity investments - appreciation (decline): Equity securities 163 19 46 85 Equity fund investments in fixed income securities 1 (5) 6 (9) Limited partnerships (2) 6 4 1 12 Total valuation of equity investments 170 18 53 88 Valuation change and settlements of derivatives (65) (15) (84) (23) Net gains (losses) on investments and derivatives, pre-tax (144) (103) (493) (267) Income tax benefit 32 22 105 58 Net gains (losses) on investments and derivatives, after-tax $ (112) $ (81) $ (388) $ (209) Property-Liability (1) $ (148) $ (81) $ (408) $ (208) Protection Services 1 (1) (7) (4) Allstate Health and Benefits (1) 1 (2) 2 Corporate and Other 36 — 29 1 Net gains (losses) on investments and derivatives, after-tax $ (112) $ (81) $ (388) $ (209) Market-based (1) $ (168) $ (99) $ (489) $ (284) Performance-based 24 (4) (4) 17 Net gains (losses) on investments and derivatives, pre-tax $ (144) $ (103) $ (493) $ (267) (1) 2025 includes losses recorded for variable interests in 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 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 Investments 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 $84 million in the second quarter and first six months of 2025, respectively, primarily related to losses on foreign currency contracts used to manage foreign currency risk, net losses on interest rate futures used to manage duration and losses on credit default contracts due to tightening credit spreads. Net gains (losses) on performance-based investments and derivatives Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 2025 2024 Sales $ 6 $ 2 $ (3) $ (2) Credit losses (4) (17) (11) (21) Valuation change of equity investments 59 8 66 26 Valuation change and settlements of derivatives (37) 3 (56) 14 Total performance-based $ 24 $ (4) $ (4) $ 17 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. 70 www.allstate.com Capital Resources and Liquidity Capital Resources and Liquidity Capital resources consist of shareholders’ equity and debt, representing funds deployed or available to be deployed to support business operations or for general corporate purposes. Capital resources ($ 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 Accumulated other comprehensive loss (57) (889) Total Allstate shareholders’ equity 24,019 21,442 Debt (1) 8,087 8,085 Total capital resources $ 32,106 $ 29,527 Ratio of debt to Allstate shareholders’ equity 33.7 % 37.7 % Ratio of debt to capital resources 25.2 27.4 (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 $600 million of debt that is scheduled to mature in December 2025. Debt maturities for each of the next five years and thereafter (excluding issuance costs) ($ in millions) 2026 $ 550 2027 — 2028 — 2029 500 2030 600 Thereafter 5,891 Total long-term debt principal $ 7,541 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 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. 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 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. Liquidity is managed at both the entity and enterprise level across the Company and is assessed on both base and stressed level liquidity needs. We believe we have sufficient liquidity to meet these needs. 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 AIC. The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general corporate purposes. The Liquidity Agreement does not establish a commitment to advance funds on the part of any party. AIC serves as a lender and borrower, certain other subsidiaries serve only as borrowers, and the Corporation serves only as a lender. The maximum amount of potential funding under each of these agreements is $1.00 billion. 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. The maximum amount of loans the Corporation will have outstanding to all its eligible subsidiaries at any given point in time is limited to $1.00 billion. 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 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 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. 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 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 six months of 2025, we did not defer interest payments on the subordinated debentures. Additional resources to support liquidity are as follows: • The Corporation and AIC have access to a $750 million unsecured revolving credit facility that is available for short-term liquidity requirements. The maturity date of this facility is November 2027. 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. 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 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 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 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. 72 www.allstate.com Forward-Looking Statements This report contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. These statements may address, among other things, our strategy for growth, catastrophe exposure management, product development, investment results, regulatory approvals, market position, expenses, financial results, litigation and reserves. We believe that these statements are based on reasonable estimates, assumptions and plans. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements resulting from new information or future events or developments. In addition, forward-looking statements are subject to certain risks or uncertainties that could cause actual results to differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include risks related to: Insurance and Financial Services (1) actual claim costs exceeding current reserves; (2) unexpected increases in claim frequency or severity; (3) catastrophes and severe weather events; (4) limitations in analytical models used for loss cost estimates; (5) price competition and changes in regulation and underwriting standards; (6) regulatory limitations on rate increases and requirements to underwrite business and participate in loss sharing arrangements; (7) market risk and declines in credit quality of our investment portfolios; (8) economic and capital market conditions affecting investments; (9) subjective determination of fair value and amount of credit losses for investments; (10) participation in indemnification programs, including state industry pools and facilities; (11) inability to mitigate the impact associated with changes in capital requirements; (12) a downgrade in financial strength ratings; Business, Strategy and Operations (13) operations in markets that are highly competitive; (14) changing consumer preferences; (15) new or changing technologies impacting the business; (16) inability to successfully deploy new technologies; (17) Transformative Growth strategy; (18) catastrophe management strategy; (19) restrictions on our subsidiaries’ ability to pay dividends; (20) restrictions under terms of some of our securities on the ability to pay dividends or repurchase stock; (21) the availability and cost of reinsurance; (22) counterparty risk related to reinsurance; (23) acquisitions and divestitures of businesses; (24) intellectual property infringement, misappropriation and third-party claims; (25) reliance on vendors for products, services or protection of data and information; (26) inability to attract, develop and retain talent; Macro, Regulatory and Risk Environment (27) conditions in the global economy and capital markets, including changes in U.S. trade and tariff policy, newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or additional U.S. tariffs, and our ability to plan for and respond to the impact of those changes; (28) restrictions on liquidity or availability of credit on acceptable terms; (29) a large-scale pandemic, the occurrence of terrorism, military actions or political and social unrest or other disruptive or destabilizing events; (30) the failure in cyber or other information security controls; (31) failure of business continuity following a disaster or other event; (32) changing climate and weather conditions; (33) evolving environmental, social and governance standards and expectations; (34) evolving privacy and data security regulations and increased focus on enforcement; (35) failure to manage risk and to timely detect and mitigate a cybersecurity event; (36) restrictive regulations and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally; (37) regulatory reforms and stringent application of existing regulations; (38) losses from legal and regulatory actions; (39) changes in or the application of accounting standards and changes in tax laws; and (40) misconduct or fraudulent acts by employees, agents and third parties. 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.