What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-07-30 · 424 added, 333 removed, 1426 unchanged (35% of the section changed)

3 unchanged sentences

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

June 30, Six months ended June 30,

September 30, Nine months ended September 30,

2025 2024 2025 2024

17 unchanged sentences

Gain on disposition of operations

720 — 1,610 —

Income from operations before income tax expense 4,819 1,418 8,241 3,312

1 unchanged sentence

Net income 3,744 1,164 6,439 2,709

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

Net loss attributable to noncontrolling interest ( 2 ) ( 26 ) ( 11 ) ( 30 )

Net income attributable to Allstate 3,746 1,190 6,450 2,739

7 unchanged sentences

See notes to condensed consolidated financial statements.

Second Quarter 2025 Form 10-Q 1

Third Quarter 2025 Form 10-Q 1

Condensed Consolidated Financial Statements

1 unchanged sentence

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

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

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

2025 2024 2025 2024

Net income $ 3,744 $ 1,164 $ 6,439 $ 2,709

Other comprehensive income (loss), after-tax

Other comprehensive income, after-tax

Unrealized net capital gains and losses 315 1,299 1,122 965

3 unchanged sentences

1 ( 36 ) ( 13 ) ( 12 )

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

Other comprehensive income, after-tax 355 1,277 1,187 951

Comprehensive income 4,099 2,441 7,626 3,660

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

Comprehensive loss attributable to noncontrolling interest ( 2 ) ( 19 ) ( 8 ) ( 22 )

Comprehensive income attributable to Allstate $ 4,101 $ 2,460 $ 7,634 $ 3,682

4 unchanged sentences

Condensed Consolidated Statements of Financial Position (unaudited)

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

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

Fixed income securities, at fair value (amortized cost, net $ 56,732 and $ 53,616 )

17 unchanged sentences

Reserve for property and casualty insurance claims and claims expense 43,103 41,917

Reserve for future policy benefits 304 269

Unearned premiums 29,157 26,909

Claim payments outstanding 1,554 1,567

Deferred income taxes 311 —

Other liabilities and accrued expenses 10,699 9,659

14 unchanged sentences

Discount rate for reserve for future policy benefits

Total accumulated other comprehensive loss ( 57 ) ( 889 )

Total accumulated other comprehensive income (loss) 298 ( 889 )

Total Allstate shareholders’ equity 27,505 21,442

3 unchanged sentences

See notes to condensed consolidated financial statements.

Second Quarter 2025 Form 10-Q 3

Third Quarter 2025 Form 10-Q 3

Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)

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

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

2025 2024 2025 2024

30 unchanged sentences

Change in unrealized net capital gains and losses — 7 3 8

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

Noncontrolling loss ( 2 ) ( 26 ) ( 11 ) ( 30 )

Capital transactions for noncontrolling interest

6 unchanged sentences

Condensed Consolidated Statements of Cash Flows (unaudited)

($ in millions) Six months ended

($ in millions) Nine months ended

September 30,

Cash flows from operating activities

5 unchanged sentences

Gain on disposition of operations

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

Claims and claims expense and other insurance reserves

Unearned premiums 2,212 2,378

35 unchanged sentences

Shares reissued under equity incentive plans, net 38 149

Other 12 ( 6 )

Net cash used in financing activities ( 1,588 ) ( 437 )

Net increase (decrease) in cash 382 ( 123 )

Net increase in cash 227 208

Cash at beginning of period 704 722

2 unchanged sentences

See notes to condensed consolidated financial statements.

Second Quarter 2025 Form 10-Q 5

Third Quarter 2025 Form 10-Q 5

Notes to Condensed Consolidated Financial Statements

5 unchanged sentences

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

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

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

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

5 unchanged sentences

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

The adoption had no impact on the

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

The adoption had no impact on the Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Financial Position.

Pending accounting standards

2 unchanged sentences

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

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

Additionally, entities must disclose income taxes paid,

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

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

The guidance affects disclosures only.

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

The guidance outlines the specific costs that are required to be disclosed, which include costs such as:

employee compensation, depreciation, intangible asset amortization and selling costs.

It also requires qualitative descriptions of the amounts remaining in the relevant income statement captions that are not separately disaggregated quantitatively in the notes to the financial statements and the Company's definition of selling expenses.

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

1 unchanged sentence

The guidance affects disclosures only.

Credit losses In July 2025, the FASB issued guidance providing a practical expedient for estimating credit losses on current accounts receivable and contract assets arising from revenue transactions under ASC 606.

The update now allows entities to assume current conditions remain unchanged for the asset's remaining life when estimating expected credit losses, simplifying the estimation process.

The new guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted.

The Company does not expect the impact of this standard to be material to its financial statements and disclosures.

Internal-use software In September 2025, the FASB issued guidance which updates the accounting for internal-use software by replacing the stage-based model with a principles-based approach.

The new guidance requires capitalization once management commits to funding and it is probable the software will be completed and used as intended (probable-to-complete recognition threshold).

The standard also clarifies that costs cannot be capitalized when significant development uncertainty exists, such as unresolved technological innovations or unclear performance requirements.

In addition, website

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Notes to Condensed Consolidated Financial Statements

development costs are now included under the same guidance.

The new guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.

Early adoption is permitted as of the

beginning of an annual reporting period.

The standard may be adopted prospectively, retrospectively, or using a modified transition approach.

The Company is currently evaluating the impact of this standard on its financial statements and disclosures.

Note 2 Earnings per Common Share

4 unchanged sentences

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

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Notes to Condensed Consolidated Financial Statements

Computation of basic and diluted earnings per common share

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

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

2025 2024 2025 2024

Net income $ 3,744 $ 1,164 $ 6,439 $ 2,709

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

Net loss attributable to noncontrolling interest ( 2 ) ( 26 ) ( 11 ) ( 30 )

Net income attributable to Allstate 3,746 1,190 6,450 2,739

16 unchanged sentences

Note 3 Dispositions

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

The Company recorded a gain on the sale

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

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

The Company recorded a gain on the sale of

$ 888 million or $ 641 million, after-tax for the nine months ended September 30, 2025.

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

Third Quarter 2025 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

Major classes of assets and liabilities disposed of in EVB transaction

6 unchanged sentences

Total investments 1,856 1,906

Deferred policy acquisitions costs 525 521

Deferred policy acquisition costs

Reinsurance recoverables, net 117 111

6 unchanged sentences

$ 2,102 $ 2,113

(1) Included $ 249 million of goodwill at April 1, 2025.

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

Second Quarter 2025 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

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

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

The transaction closed on July 1,

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

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

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

Group health business disposition On July 1, 2025, the Company closed the sale of Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the Company’s group health business for $ 1.23 billion in

cash, net of purchase price adjustments.

The Company recorded a gain on the sale of $ 722 million or $ 506 million, after-tax in the third quarter of 2025.

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

Major classes of assets and liabilities disposed of in group health business transaction

($ in millions)

June 30, 2025

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

1 unchanged sentence

Total investments 320

Deferred policy acquisitions costs 1

Deferred policy acquisition costs

Other assets (1)

Total assets held for sale $ 715

Other liabilities and accrued expenses $ 9

Total liabilities held for sale $ 14

Total liabilities

(1) Included $ 152 million of goodwill at July 1, 2025.

In addition, reserves for future policy benefits of $ 200 million were reinsured to Nationwide Life Insurance Company with a corresponding reinsurance recoverable established on July 1, 2025.

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

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Notes to Condensed Consolidated Financial Statements

Note 4 Reportable Segments

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.

The dispositions of the EVB and group health businesses did not qualify for discontinued operations.

Starting in the third quarter of 2025, the Allstate Health and Benefits segment is no longer a reportable segment, with results of this segment recast to reflect only the results of the EVB and group health businesses.

The retained individual health business, previously included in the Allstate Health and Benefits segment, is a non-reportable segment with results included in all other for all periods presented.

Allstate Protection and Run-off Property-Liability segments comprise Property-Liability.

The Company does not allocate 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, Protection Services, Allstate Health and Benefits, and Corporate and Other levels for decision-making purposes.

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

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

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

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

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

6 unchanged sentences

A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below.

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Notes to Condensed Consolidated Financial Statements

Reportable segments financial performance

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

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

($ in millions) 2025 2024 2025 2024

3 unchanged sentences

( 146 ) ( 60 ) ( 153 ) ( 68 )

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

Adjusted net income (loss) by segment, after-tax

1 unchanged sentence

Allstate Health and Benefits

Corporate and Other ( 94 ) ( 104 ) ( 191 ) ( 210 )

Reconciling items

( 87 ) ( 110 ) ( 278 ) ( 320 )

Reconciliation of segment performance measures to net income (loss) applicable to common shareholders

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

4 unchanged sentences

( 13 ) ( 19 ) ( 37 ) ( 56 )

Gain (loss) on disposition 893 1 893 5

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

Gain on disposition

723 1 1,616 6

All other (2)

( 7 ) 5 ( 16 ) 18

Income tax (expense) benefit on Allstate Protection and Run-off Property-Liability and reconciling items (3)

( 1,073 ) ( 251 ) ( 1,803 ) ( 588 )

Total reconciling items 863 661 1,892 1,394

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

Net loss attributable to noncontrolling interest (4)

( 1 ) ( 25 ) ( 10 ) ( 29 )

1 unchanged sentence

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

(2) Includes results of the individual health business, which was previously included within the Allstate Health and Benefits segment.

Prior period results were recast to reflect the historical results of the individual health business.

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

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

Second Quarter 2025 Form 10-Q 9

(4) Reflects net loss attributable to noncontrolling interest in Allstate Protection.

Third Quarter 2025 Form 10-Q 9

Notes to Condensed Consolidated Financial Statements

Reportable segments revenue information

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

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

2025 2024 2025 2024

Property-Liability

Allstate Protection

Insurance premiums

4 unchanged sentences

Other business lines 161 152 494 438

Allstate Protection 14,346 13,339 28,373 26,239

Run-off Property-Liability

Total Property-Liability insurance premiums

14,346 13,339 28,373 26,239

Total Allstate Protection insurance premiums 14,533 13,694 42,906 39,933

Other revenue 518 531 1,510 1,402

Net investment income 687 643 1,470 1,345

Net gains (losses) on investments and derivatives ( 190 ) ( 103 ) ( 519 ) ( 265 )

Total Property-Liability 15,347 14,320 30,316 28,190

Total Allstate Protection

15,051 14,225 44,416 41,335

Run-off Property-Liability

Protection Services

4 unchanged sentences

Intersegment premiums and service fees (1)

33 49 106 123

Other revenue 124 110 363 293

5 unchanged sentences

Group health — 120 247 358

Individual health 112 108 232 220

Other revenue — 81 163 245

3 unchanged sentences

— 468 676 1,411

Corporate and Other

Other revenue 24 17 62 56

1 unchanged sentence

Net gains (losses) on investments and derivatives 85 17 122 19

Total Corporate and Other 106 41 134 80

Total Corporate

158 59 292 139

Reconciliation of revenue

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

873 708 2,343 2,053

Allstate Protection and Run-off Property-Liability net gains (losses) on investments and derivatives

157 222 ( 362 ) ( 43 )

All other 137 162 451 476

Intersegment eliminations (1)

1 unchanged sentence

Consolidated revenues $ 17,255 $ 16,627 $ 50,340 $ 47,600

(1) Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the condensed consolidated financial statements.

(1) Intersegment insurance premiums and service fees are primarily related to Arity and Roadside and are eliminated in the condensed consolidated financial statements.

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1 unchanged sentence

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

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

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

($ in millions) 2025 2024 2025 2024

Property-Liability

Allstate Protection

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

8 unchanged sentences

1,298 1,190 3,717 3,457

Allstate Protection

12,011 13,670 39,729 40,019

Claims and claims expense (1)

Other segment expenses (2)

Run-off Property-Liability

Total Property-Liability

Claims and claims expense prior year reserve reestimates (3)

146 59 151 65

Other segment expenses (2)

146 60 153 68

Protection Services

2 unchanged sentences

Amortization of DAC 337 304 983 889

Non-deferrable commissions

116 94 327 251

Restructuring and related charges 1 — 2 1

12 unchanged sentences

Total — 442 634 1,281

Corporate and Other

Interest expense 101 104 301 299

1 unchanged sentence

Other segment expenses (2)

42 39 119 128

Income taxes on operations

2 unchanged sentences

Total $ 160 $ 152 $ 448 $ 440

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

(1) Includes Allstate Protection incurred loss adjustment expenses, net of reinsurance of $ 741 million and $ 732 million during the three months ended September 30, 2025 and 2024, respectively, and $ 2.22 billion and $ 2.14 billion during the nine months ended September 30, 2025 and 2024, respectively.

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

Second Quarter 2025 Form 10-Q 11

(3) Includes Run-off Property-Liability incurred loss adjustment expenses, net of reinsurance of $ 24 million and $ 4 million during the three months ended September 30, 2025 and 2024, respectively, and $ 28 million and $ 7 million during the nine months ended September 30, 2025 and 2024, respectively.

Third Quarter 2025 Form 10-Q 11

Notes to Condensed Consolidated Financial Statements

Additional significant financial performance data

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

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

($ in millions) 2025 2024 2025 2024

Amortization of DAC

Property-Liability $ 1,742 $ 1,673 $ 3,474 $ 3,281

Allstate Protection

$ 1,757 $ 1,696 $ 5,231 $ 4,977

Protection Services 337 304 983 889

2 unchanged sentences

Amortization of purchased intangibles

Property-Liability $ 46 $ 51 $ 92 $ 102

Allstate Protection

$ 46 $ 52 $ 138 $ 154

Protection Services 10 12 28 36

2 unchanged sentences

Income tax expense (benefit)

Property-Liability $ 350 $ 79 $ 498 $ 342

Allstate Protection and Run-off Property-Liability

$ 817 $ 257 $ 1,315 $ 599

Protection Services 15 14 44 43

1 unchanged sentence

29 ( 25 ) ( 26 ) ( 75 )

Corporate and Other

( 2 ) — ( 5 ) 2

Consolidated $ 1,075 $ 254 $ 1,802 $ 603

(1) Includes income tax expense on the gain on sale of the EVB and group health businesses.

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

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

A portion of these long-lived assets are used by entities included in the Protection Services, Corporate and until July 1, 2025, Allstate Health and Benefits segments and accordingly, are charged to these segments in proportion to their use.

Reportable segments total assets, investments and deferred policy acquisition costs

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

Property-Liability $ 102,190 $ 96,988

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

Allstate Protection and Run-off Property-Liability

$ 105,668 $ 96,988

Protection Services 8,442 7,540

Allstate Health and Benefits

Corporate and Other 4,589 2,727

Consolidated $ 120,402 $ 111,617

Investments (1)

Property-Liability $ 70,831 $ 67,671

Allstate Protection and Run-off Property-Liability

$ 74,390 $ 67,671

Protection Services 2,501 2,228

Allstate Health and Benefits (2)

Corporate and Other 3,986 2,332

Consolidated $ 82,328 $ 72,610

Deferred policy acquisition costs

Property-Liability $ 2,656 $ 2,548

Allstate Protection

$ 2,802 $ 2,548

Protection Services 3,212 3,161

2 unchanged sentences

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

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

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

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2 unchanged sentences

Portfolio composition

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

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

Fixed income securities, at fair value $ 57,186 $ 52,747

7 unchanged sentences

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

June 30, 2025

September 30, 2025

government and agencies $ 13,490 $ 55 $ ( 20 ) $ 13,525

15 unchanged sentences

Scheduled maturities for fixed income securities

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

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

Amortized cost, net Fair

9 unchanged sentences

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

Second Quarter 2025 Form 10-Q 13

Third Quarter 2025 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements

Net investment income

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

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

2025 2024 2025 2024

10 unchanged sentences

Net gains (losses) on investments and derivatives by type

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

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

2025 2024 2025 2024

12 unchanged sentences

($ in millions)

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

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

2025 2024 2025 2024

2 unchanged sentences

Valuation change of equity investments (1)

200 119 253 207

Valuation change and settlements of derivatives 6 20 ( 78 ) ( 3 )

2 unchanged sentences

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

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

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

2025 2024 2025 2024

2 unchanged sentences

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

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

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

2025 2024 2025 2024

6 unchanged sentences

Credit losses recognized in net income

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

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

2025 2024 2025 2024

Fixed income securities:

Municipal $ — $ ( 2 ) $ — $ ( 2 )

Corporate — ( 1 ) — ( 2 )

5 unchanged sentences

( 6 ) — ( 6 ) 2

— — ( 52 ) ( 123 )

Commitments to fund line of credit, commercial mortgage loans and bank loans — — ( 15 ) 1

4 unchanged sentences

gains (losses)

June 30, 2025 Gains Losses

September 30, 2025 Gains Losses

Fixed income securities $ 57,186 $ 848 $ ( 394 ) $ 454

1 unchanged sentence

Derivative instruments (1)

Investments classified as held for sale 1

— — ( 2 ) ( 2 )

Unrealized net capital gains and losses, pre-tax 452

6 unchanged sentences

Derivative instruments (1)

— — ( 2 ) ( 2 )

Investments classified as held for sale ( 110 )

3 unchanged sentences

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

(1) Includes the effective portion of losses on terminated cash flow hedges.

Change in unrealized net capital gains (losses)

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

($ in millions) Nine months ended September 30, 2025

Fixed income securities $ 1,323

5 unchanged sentences

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

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

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

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

Mortgage loans The Company’s mortgage loans totaled $ 831 million and $ 784 million, net of credit loss allowance, as of September 30, 2025 and December 31, 2024, respectively, and are primarily commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States.

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

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

Second Quarter 2025 Form 10-Q 15

Residential mortgage loans totaled $ 151 million and $ 61 million as of September 30, 2025 and December 31, 2024, respectively, and have recourse to the borrower.

Third Quarter 2025 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Carrying value for limited partnership interests

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

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

Private equity $ 7,515 $ 7,734

4 unchanged sentences

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

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

As of September 30, 2025 and December 31, 2024, the fair value of short-term investments totaled $ 8.74 billion and $ 4.54 billion, respectively.

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

2 unchanged sentences

Other investments by asset type

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

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

Bank loans, net $ 383 $ 201

22 unchanged sentences

Recoveries after write-offs are recognized when received.

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

Accrued interest excluded from the amortized cost of fixed income securities totaled $ 561 million and $ 574 million as of September 30, 2025 and December 31, 2024, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position.

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

9 unchanged sentences

Rollforward of credit loss allowance for fixed income securities

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

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

($ in millions) 2025 2024 2025 2024

5 unchanged sentences

Ending balance $ ( 5 ) $ ( 22 ) $ ( 5 ) $ ( 22 )

Components of credit loss allowance as of June 30

Components of credit loss allowance as of September 30

Municipal bonds

Corporate bonds ( 4 ) ( 18 )

1 unchanged sentence

Total $ ( 5 ) $ ( 22 )

Second Quarter 2025 Form 10-Q 17

Third Quarter 2025 Form 10-Q 17

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

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

June 30, 2025

September 30, 2025

Fixed income securities

21 unchanged sentences

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

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

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Notes to Condensed Consolidated Financial Statements

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

(1) Includes fixed income securities with fair values of $ 8 million and $ 16 million and unrealized losses of zero and $ 1 million with credit loss allowances of $ 1 million and $ 3 million as of September 30, 2025 and December 31, 2024, respectively.

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

($ in millions) Investment

9 unchanged sentences

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

Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase.

Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit

spreads since the time of initial purchase.

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

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

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

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Notes to Condensed Consolidated Financial Statements

expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread.

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

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

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

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

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

The Company also considers

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

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

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

12 unchanged sentences

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

Second Quarter 2025 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

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

2 unchanged sentences

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

Third Quarter 2025 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

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

5 unchanged sentences

Amortized cost, net $ 680 $ 723

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

Payment status of mortgage loans

September 30, 2025

($ in millions) Commercial

Less than 90 days past due

$ 23 $ 1 $ 24

90 days or greater past due

Total past due before allowance

Current before allowance

Total mortgage loans before allowance

( 17 ) ( 1 ) ( 18 )

Total mortgage loans $ 680 $ 151 $ 831

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

Rollforward of credit loss allowance for mortgage loans

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

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

($ in millions) 2025 2024 2025 2024

Beginning balance $ ( 12 ) $ ( 10 ) $ ( 12 ) $ ( 11 )

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

Net increases related to credit losses ( 6 ) ( 1 ) ( 6 ) —

Write-offs — — — —

1 unchanged sentence

$ ( 18 ) $ ( 11 ) $ ( 18 ) $ ( 11 )

Components of credit loss allowance as of June 30

Components of credit loss allowance as of September 30

$ ( 17 ) $ ( 11 )

5 unchanged sentences

The year of origination is determined to be the year in which the asset is acquired.

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Notes to Condensed Consolidated Financial Statements

Bank loans amortized cost by credit rating and year of origination

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

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

7 unchanged sentences

Amortized cost, net $ 383 $ 201

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Notes to Condensed Consolidated Financial Statements

Rollforward of credit loss allowance for bank loans

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

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

2025 2024 2025 2024

16 unchanged sentences

The availability of observable inputs varies by instrument.

In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment.

In situations where fair value is based on

internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment.

The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3.

7 unchanged sentences

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

Third Quarter 2025 Form 10-Q 21

Notes to Condensed Consolidated Financial Statements

The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers.

6 unchanged sentences

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

however, there has been a significant decrease in the

Second Quarter 2025 Form 10-Q 21

Notes to Condensed Consolidated Financial Statements

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

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

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

13 unchanged sentences

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

Certain ABS are valued based

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

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

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

6 unchanged sentences

Over-the-counter (“OTC”) derivatives, including interest rate swaps, foreign currency swaps, total return swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, implied volatilities, index price levels, currency rates, and credit spreads that are observable for substantially the full term of the contract.

The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

The valuation techniques underlying the models are widely accepted in the financial

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Notes to Condensed Consolidated Financial Statements

services industry and do not involve significant judgment.

• Assets held for sale:

11 unchanged sentences

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

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

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Notes to Condensed Consolidated Financial Statements

collateral performance and credit spreads.

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

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

5 unchanged sentences

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

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

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

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

2 unchanged sentences

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

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

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

3 unchanged sentences

Assets measured at fair value on a non-recurring basis

Comprise long-lived assets to be disposed of by sale, including real estate, that are written down to fair value less costs to sell and bank loans written down to fair value in connection with recognizing credit losses.

Comprise long-lived assets to be disposed of by sale, including real estate, that are written down to fair value less costs to sell and bank loans, limited partnerships and commercial mortgages written down to fair value in connection with recognizing credit losses.

Investments excluded from the fair value hierarchy

3 unchanged sentences

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

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

Second Quarter 2025 Form 10-Q 23

As of September 30, 2025, the Company has commitments to invest $ 127 million in limited partnership interests that are reported at net asset value.

Third Quarter 2025 Form 10-Q 23

Notes to Condensed Consolidated Financial Statements

Assets and liabilities measured at fair value

June 30, 2025

September 30, 2025

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

13 unchanged sentences

Other assets 1 — 140 141

Assets held for sale 195 125 — 320

Total recurring basis assets 21,630 48,936 766 ( 2 ) 71,330

6 unchanged sentences

Total liabilities at fair value $ — $ ( 31 ) $ ( 1 ) $ 30 $ ( 2 )

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

(1) Excludes $ 91 million of securities using the measurement alternative or the equity method of accounting.

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26 unchanged sentences

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

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

As of September 30, 2025 and December 31, 2024, Level 3 fair value measurements of fixed income securities totaled $ 306 million and $ 248 million, respectively, and included $ 82 million and $ 87 million, respectively, of securities valued based on third-party discounted cash flow pricing models where the inputs have not been corroborated to be market observable, $ 25 million and $ 22 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 3 million and $ 2 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies.

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

Second Quarter 2025 Form 10-Q 25

Third Quarter 2025 Form 10-Q 25

Notes to Condensed Consolidated Financial Statements

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

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

Balance as of

March 31, 2025 Total gains (losses)

June 30, 2025 Total gains (losses)

Transfers Balance as of

June 30, 2025

September 30, 2025

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

10 unchanged sentences

Other assets 137 3 — — — — — — 140

Assets held for sale

7 — 1 — — — ( 8 ) — —

Total recurring Level 3 assets 773 2 1 1 ( 63 ) 59 ( 4 ) ( 3 ) 766

2 unchanged sentences

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

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

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

Balance as of

1 unchanged sentence

Transfers Balance as of

June 30, 2025

September 30, 2025

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

19 unchanged sentences

Notes to Condensed Consolidated Financial Statements

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

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

Balance as of

March 31, 2024 Total gains (losses)

Transfers Balance as of

June 30, 2024

June 30, 2024 Total gains (losses)

Transfers Transfers (to) from held for sale

Balance as of

September 30, 2024

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

9 unchanged sentences

Other assets 121 2 — — — — — — — 123

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

Total recurring Level 3 assets 675 12 — — — — 39 ( 2 ) ( 1 ) 723

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

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

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

Balance as of

December 31, 2023 Total gains (losses)

Transfers Balance as of

June 30, 2024

Transfers Transfers (to) from held for sale

Balance as of

September 30, 2024

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

9 unchanged sentences

Other assets 118 5 — — — — — — — 123

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

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

1 unchanged sentence

Total Level 3 gains (losses) included in net income

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

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

($ in millions) 2025 2024 2025 2024

3 unchanged sentences

Operating costs and expenses

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

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

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

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

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

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

Second Quarter 2025 Form 10-Q 27

Transfers into Level 3 during the three and nine months ended September 30, 2025 included situations where a rating was not provided by third-party rating agencies resulting in the security being classified as Level 3.

Transfers into Level 3 during the nine months ended September 30, 2025 also included situations

where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3.

Third Quarter 2025 Form 10-Q 27

Notes to Condensed Consolidated Financial Statements

Transfers out of Level 3 during the three and nine months ended September 30, 2025 included situations where a quote that was not provided by the Company’s independent third-party valuation service provider in the prior period became available in the current period.

Any gains or losses related to the

change in valuation source for individual securities were not significant.

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

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

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

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

($ in millions) 2025 2024 2025 2024

Fixed income securities:

Municipal $ — $ ( 2 ) $ — $ ( 2 )

Corporate - public — — ( 1 ) 1

16 unchanged sentences

Financial instruments not carried at fair value

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

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

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

13 unchanged sentences

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

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

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

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

The Company replicates equity

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Notes to Condensed Consolidated Financial Statements

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

Property-Liability may use interest rate swaps, swaptions, futures and options to manage the interest rate risks of existing investments.

1 unchanged sentence

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

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

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Notes to Condensed Consolidated Financial Statements

fixed income portfolio.

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

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

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

In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts.

1 unchanged sentence

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

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

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

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

1 unchanged sentence

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

However, the notional amounts specified

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

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

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

5 unchanged sentences

There are no collateral requirements related to the contingent consideration.

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

Third Quarter 2025 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

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

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

3 unchanged sentences

Interest rate contracts

Interest rate cap agreements Other investments $ 37 n/a $ — $ — $ —

Futures Other assets n/a 5,311 — — —

2 unchanged sentences

Futures Other assets n/a 1,016 1 1 —

Foreign currency contracts

Foreign currency forwards Other investments $ 278 n/a ( 20 ) 1 ( 21 )

Contingent consideration Other assets 250 n/a 140 140 —

Credit default contracts

Credit default swaps - selling protection Other investments 500 n/a 12 12 —

Total asset derivatives $ 787 6,392 $ 153 $ 153 $ —

9 unchanged sentences

Foreign currency forwards Other liabilities and accrued expenses 537 n/a ( 29 ) 2 ( 31 )

Credit default contracts

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

Total liability derivatives 574 3,606 ( 30 ) $ 2 $ ( 32 )

3 unchanged sentences

(n/a = not applicable)

Second Quarter 2025 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

Summary of the volume and fair value positions of derivative instruments as of December 31, 2024

22 unchanged sentences

(n/a = not applicable)

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Notes to Condensed Consolidated Financial Statements

Gross and net amounts for OTC derivatives (1)

1 unchanged sentence

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

June 30, 2025

September 30, 2025

Asset derivatives $ 2 $ ( 2 ) $ — $ — $ — $ —

4 unchanged sentences

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

30 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Gains (losses) from valuation and settlements reported on derivatives

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

Three months ended June 30, 2025

Three months ended September 30, 2025

Interest rate contracts $ 2 $ — $ 2

2 unchanged sentences

Foreign currency contracts 6 — 6

Credit default contracts ( 10 ) — ( 10 )

Total $ 6 $ 18 $ 24

Six months ended June 30, 2025

Nine months ended September 30, 2025

Interest rate contracts $ ( 8 ) $ — $ ( 8 )

4 unchanged sentences

Total $ ( 78 ) $ 27 $ ( 51 )

Three months ended June 30, 2024

Three months ended September 30, 2024

Interest rate contracts $ 42 $ — $ 42

2 unchanged sentences

Foreign currency contracts ( 23 ) — ( 23 )

Credit default contracts 3 — 3

Total $ 20 $ 12 $ 32

Six months ended June 30, 2024

Nine months ended September 30, 2024

Interest rate contracts $ 21 $ — $ 21

7 unchanged sentences

OTC cash and securities collateral pledged

($ in millions) June 30, 2025

($ in millions) September 30, 2025

Pledged by the Company $ 28

1 unchanged sentence

(1) $ 28 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision.

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

nonperformance.

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

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

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

Second Quarter 2025 Form 10-Q 31

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

Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and

Third Quarter 2025 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

guarantee the execution of trades, thereby mitigating any potential credit risk.

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual

terms of the contracts and all collateral, if any, becomes worthless.

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

OTC derivatives counterparty credit exposure by counterparty credit rating

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

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

Number of counter-parties Notional amount (2)

11 unchanged sentences

Exchange traded and cleared margin deposits

($ in millions) June 30, 2025

($ in millions) September 30, 2025

Pledged by the Company $ 88

7 unchanged sentences

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

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

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

Gross liability fair value of contracts containing credit-risk-contingent features $ 31 $ 1

2 unchanged sentences

Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ 1 $ —

Credit derivatives - selling protection

A credit default swap (“CDS”) is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium.

protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative.

CDS typically have a five-year term.

CDS notional amounts by credit rating and fair value of protection sold

($ in millions) Notional amount

AAA AA A BBB BB and

September 30, 2025

Corporate debt $ — $ — $ — $ 500 $ — $ 500 $ 12

Total $ — $ — $ — $ 500 $ — $ 500 $ 12

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Notes to Condensed Consolidated Financial Statements

As of December 31, 2024, there were no open CDS positions.

The Company sells credit protection through contracts on standardized credit indices (“CDX”), generally investment grade, which are centrally cleared through a registered Derivatives Clearing Organization, and in return receives periodic premiums through the expiration or termination of the contract.

A CDX is utilized to take a position on multiple (generally 125) reference entities.

Credit events are typically defined as bankruptcy, failure to pay, or restructuring,

depending on the nature of the reference entities.

When a credit event occurs for a reference entity within the index, the affected name is removed from the index, and the contract continues until expiration.

Settlement is conducted through an auction process, whereby the Company pays the difference between the contract’s notional amount and the final recovery value of the reference obligation as determined by the auction.

The maximum payout on a CDX is the contract notional amount.

Note 8 Variable Interest Entities

4 unchanged sentences

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

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

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

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

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

1 unchanged sentence

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

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

The New York State Department of Financial Services approved the withdrawal plan for Adirondack

to non-renew or cancel all policies effective as of December 31, 2024.

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

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Notes to Condensed Consolidated Financial Statements

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

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

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

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

Reciprocal Exchanges.

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

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

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

Claims and claims expense ceded to the Company were $( 1 ) million and $( 1 ) million for the three and nine months ended September 30, 2025, respectively, compared to $( 6 ) million and $ 24 million for the three and nine months ended September 30, 2024, respectively.

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

The management fees were $ 2 million and $ 23 million for the three and nine months ended September 30, 2024, respectively.

Earned premiums for the Reciprocal Exchanges generated zero and $( 1 ) million for the three and nine months ended September 30, 2025, respectively, compared to $ 48 million and $ 170 million for the three and nine months ended September 30, 2024, respectively.

Total costs and expenses were $ 3 million and $ 10 million for the three and nine months ended September 30, 2025, respectively, compared to $ 62 million and $ 207 million for the three and nine months ended September 30, 2024, respectively.

Third Quarter 2025 Form 10-Q 33

Notes to Condensed Consolidated Financial Statements

Assets and liabilities of Reciprocal Exchanges

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

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

Fixed income securities $ 3 $ 47

16 unchanged sentences

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

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

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

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

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

2 unchanged sentences

When changes in claim data occur, actuarial judgment is used to determine appropriate development factors to establish reserves.

The Company’s reserving process incorporates changes in loss patterns, operational statistics and changes in claims reporting processes to determine its best estimate of recorded reserves.

The Company’s reserving process incorporates changes in

loss patterns, operational statistics and changes in claims reporting processes to determine its best estimate of recorded reserves.

As part of the reserving process, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims.

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

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

Second Quarter 2025 Form 10-Q 33

Notes to Condensed Consolidated Financial Statements

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

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

3 unchanged sentences

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

Management believes that the reserve for property and casualty insurance claims and claims expense, net of recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Condensed Consolidated Statements of Financial Position based on available facts, laws and regulations.

Management believes that the reserve for property and casualty insurance claims and claims expense, net of recoverables, is appropriately established in the

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Notes to Condensed Consolidated Financial Statements

aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Condensed

Consolidated Statements of Financial Position based on available facts, laws and regulations.

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

Six months ended June 30,

Nine months ended September 30,

($ in millions) 2025 2024

10 unchanged sentences

Total paid ( 28,923 ) ( 28,158 )

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

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

Net balance as of September 30 34,110 34,015

Balance as of September 30 $ 43,103 $ 42,743

(1) Recoverables comprises reinsurance and indemnification recoverables.

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

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

This expense included losses from catastrophes of $ 4.75 billion and $ 4.55 billion in the nine months ended September 30, 2025 and 2024, respectively, net of recoverables.

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

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Notes to Condensed Consolidated Financial Statements

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

3 unchanged sentences

2024 2025 2024

Three months ended June 30,

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

Three months ended September 30,

$ ( 480 ) $ ( 55 ) $ ( 3 ) $ ( 10 ) $ ( 483 ) $ ( 65 )

Homeowners ( 40 ) ( 11 ) ( 14 ) ( 1 ) ( 54 ) ( 12 )

3 unchanged sentences

Run-off Property-Liability (4)

146 59 — — 146 59

Protection Services — 1 — — — 1

Total prior year reserve reestimates $ ( 396 ) $ 46 $ ( 28 ) $ ( 14 ) $ ( 424 ) $ 32

Six months ended June 30,

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

Nine months ended September 30,

$ ( 1,133 ) $ ( 293 ) $ ( 30 ) $ ( 26 ) $ ( 1,163 ) $ ( 319 )

Homeowners ( 35 ) ( 114 ) 3 ( 278 ) ( 32 ) ( 392 )

3 unchanged sentences

Run-off Property-Liability (4)

151 65 — — 151 65

Protection Services — — — — — —

1 unchanged sentence

$ ( 1,007 ) $ ( 8 ) $ ( 38 ) $ ( 314 ) $ ( 1,045 ) $ ( 322 )

(1) Favorable reserve reestimates are shown in parentheses.

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

Second Quarter 2025 Form 10-Q 35

(1) Reserve releases are shown in parentheses.

(2) The first nine months of 2025 includes $ 69 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024, and $ 54 million favorable subrogation settlements related to the 2021 Colorado Marshall Fire.

(3) Reserve releases primarily related to favorable severity development of $ 284 million and $ 565 million in personal auto injury coverage and $ 196 million and $ 568 million in personal auto physical damage coverage in the third quarter and first nine months of 2025, respectively.

(4) The Company’s 2025 and 2024 annual reserve reviews, using established industry and actuarial best practices, resulted in reserve reestimates that increased reserves by $ 146 million and $ 58 million, respectively.

Third Quarter 2025 Form 10-Q 35

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

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

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

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

2025 2024 2025 2024

2 unchanged sentences

Accident and health insurance premiums and contract charges (1)

( 122 ) ( 16 ) ( 145 ) ( 37 )

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

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

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

2025 2024 2025 2024

3 unchanged sentences

( 112 ) ( 13 ) ( 140 ) ( 27 )

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

(1) Includes group health business sold through reinsurance to Nationwide Life Insurance Company.

(2) 2025 includes ceded losses related to the Nationwide Reinsurance Program for the California wildfires.

Reinsurance and indemnification recoverables

Reinsurance and indemnification recoverables, net

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

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

Property and casualty

5 unchanged sentences

Rollforward of credit loss allowance for reinsurance recoverables

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

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

2025 2024 2025 2024

1 unchanged sentence

Beginning balance $ ( 63 ) $ ( 64 ) $ ( 63 ) $ ( 62 )

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

(Increase) decrease in the provision for credit losses ( 1 ) 2 ( 1 ) —

Write-offs 10 — 10 —

2 unchanged sentences

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

Indemnification programs

Federal Government - National Flood Insurance Program (“NFIP”) NFIP is a program administered by the Federal Emergency Management Agency (“FEMA”) whereby the Company sells and services NFIP flood insurance policies as an agent of FEMA and receives fees for its services.

The Company is fully indemnified for claims and claim expenses and does not retain any ultimate risk for the indemnified business.

The federal government is obligated to pay all claims and certain allocated loss adjustment expenses in accordance with the arrangement.

Congressional authorization for the NFIP is periodically evaluated and may be subjected to freezes, including when the federal government experiences a shutdown.

Congress must periodically renew the funding of the program as well as consider

reforms to the program that would be incorporated in legislation to reauthorize the NFIP.

Legislation that extended the NFIP authorization to September 30, 2025 has expired and the federal government shutdown has frozen the NFIP.

As a result, existing policies remain valid, but insurance companies operating on behalf of the NFIP may not enter into new flood insurance contracts.

The program will also have limited ability to issue increased coverage on existing policies, or issue renewal policies.

The NFIP has the authority to process and pay new and existing flood insurance claims from the National Flood Insurance Fund and the National Flood Insurance Reserve Fund, but its borrowing capacity is reduced to $ 1 billion which has been exceeded by the current program debt of $ 22.5 billion.

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Notes to Condensed Consolidated Financial Statements

Note 11 Company Restructuring

4 unchanged sentences

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

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

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

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $ 17 million and $ 28 million during the three months ended September 30, 2025 and 2024, respectively, and $ 48 million and $ 51 million during the nine months ended September 30, 2025 and 2024, respectively.

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

These charges are primarily recorded in the Allstate Protection segment.

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

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Notes to Condensed Consolidated Financial Statements

Restructuring activity during the period

3 unchanged sentences

Payments and non-cash charges ( 51 ) ( 3 ) ( 54 )

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

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

Restructuring liability as of September 30, 2025 $ 19 $ 2 $ 21

As of September 30, 2025, the cumulative amount incurred to date for active programs related to employee severance and relocation benefit expenses totaled $ 64 million.

Note 12 Guarantees and Contingent Liabilities

8 unchanged sentences

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

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

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

The Company paid $ 45 million in FAIR Plan assessments in the first quarter of 2025, and has received approval from the California Department of Insurance for recoupment of

amounts paid.

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

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

1 unchanged sentence

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

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

business based on an assessment of the risk of loss.

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

The terms of the indemnifications vary in duration and nature.

2 unchanged sentences

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

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

In connection with the sales of Allstate Life Insurance Company of New York to Wilton Reassurance Company (“Wilton”) and Allstate Life Insurance Company and Allstate Assurance Company to Everlake

Third Quarter 2025 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

US Holdings Company (“Everlake”) in 2021, AIC agreed to indemnify Wilton and AIC and Allstate Financial Insurance Holdings Corporation (collectively, the “Sellers”) agreed to indemnify Everlake.

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

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

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

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

Regulation and compliance

1 unchanged sentence

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

In addition, the Company is subject to laws and

Second Quarter 2025 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

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

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

Equal Employment Opportunity Commission, and the U.S.

7 unchanged sentences

The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business.

Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter;

Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the

underlying facts of each matter;

novel legal issues;

13 unchanged sentences

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

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

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

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

3 unchanged sentences

Accrual and disclosure policy The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions.

The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

The Company establishes accruals for such matters at management’s best estimate, which may include the low end of a range of loss, when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

The Company does not establish accruals for such matters when the

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Notes to Condensed Consolidated Financial Statements

Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals.

8 unchanged sentences

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

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

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Notes to Condensed Consolidated Financial Statements

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

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

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

3 unchanged sentences

The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $ 52 million, pre-tax.

This disclosure is not an indication of expected loss, if any.

This disclosure is not an indication of

expected loss, if any.

Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties.

24 unchanged sentences

(a) the third-party valuation tool used by the Company as part of a comprehensive adjustment process is allegedly flawed, biased, or contrary to applicable law;

and/or (b) the Company allegedly does not pay sales tax, title fees, registration fees, and/or other specified fees that are allegedly mandatory under policy language or state legal authority.

and/or (b) the Company allegedly does not pay sales tax, title fees,

Third Quarter 2025 Form 10-Q 39

Notes to Condensed Consolidated Financial Statements

registration fees, and/or other specified fees or costs that are allegedly mandatory under policy language or state legal authority.

The Company is currently defending the following lawsuits:

5 unchanged sentences

filed February 2024);

Jarrett-Kelly v.

Direct General Insurance Agency, Inc .

(Circuit Court of Pulaski Co., Ark.

filed May 2024);

and Schott v.

Allstate Insurance Company and Allstate Property and Casualty Insurance Company (M.D.

filed October 2024).

filed October 2024) and Tang v.

Allstate Insurance Company, et al.

filed September 2025).

No classes have been certified in any of these matters.

A settlement has been reached in Bass v.

Imperial Fire and Casualty Insurance Company (W.D.

filed February 2022).

A settlement has been reached in Jarrett-Kelly v.

Direct General Insurance Agency, Inc .

(Circuit Court of Pulaski Co., Ark.

filed May 2024) and the case is awaiting court dismissal.

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

6 unchanged sentences

CSAA General Insurance , a matter involving another insurer.

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

Second Quarter 2025 Form 10-Q 39

Notes to Condensed Consolidated Financial Statements

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

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

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

3 unchanged sentences

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

On September 19, 2025, the Company filed a petition for review with the Washington Supreme Court.

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

4 unchanged sentences

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

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

On March 27, 2024, the Magistrate Judge issued his Findings and Recommendations denying class certification in Hewitt.

On August 29, 2025, the Ninth Circuit Court of Appeals reversed the district court’s order certifying a class.

On March 27, 2024, the Magistrate Judge issued his Findings and

Recommendations denying class certification in Hewitt.

Plaintiffs filed their objection to the Magistrate’s recommendation.

6 unchanged sentences

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

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

District Court for the Southern District of California,

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

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

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

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

Plaintiffs did not appeal.

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

9 unchanged sentences

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

The Company is currently defending litigation relating to the non-payment of trust preferred securities (“TruPS”), Alesco Preferred Funding VIII, Ltd., et al.

ACP Re, Ltd., et al.

and Preferred Term Securities XXV, Ltd., et al.

v ACP Re, Ltd., et al.

Plaintiffs are the holders of TruPS that were issued by companies subsequently acquired by a former National General affiliate.

Plaintiffs filed this lawsuit against National General and several other defendants, alleging that they are successors to the TruPS issuers and are responsible for repayment of the principal and interest owed under the TruPS.

Plaintiffs assert claims of breach of contract, tortious interference with contract and fraud against all defendants.

The Company denies all allegations and continues to defend plaintiffs’ claims.

40 www.allstate.com

2 unchanged sentences

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

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

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

($ in millions) 2025 2024 2025 2024

8 unchanged sentences

Remeasurement (gains) losses ( 107 ) 19 ( 30 ) 11

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

Pension net (benefit) cost $ ( 98 ) $ 30 $ ( 7 ) $ 11

Postretirement benefits

4 unchanged sentences

Remeasurement of benefit obligation

( 1 ) ( 1 ) 1 ( 3 )

Remeasurement of plan assets — — — —

4 unchanged sentences

Remeasurement (gains) losses ( 108 ) 26 ( 30 ) 15

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

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

Total net (benefit) cost $ ( 98 ) $ 39 $ ( 2 ) $ 21

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

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

2 unchanged sentences

Pension and postretirement benefits remeasurement gains and losses

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

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

($ in millions) 2025 2024 2025 2024

4 unchanged sentences

Remeasurement (gains) losses $ ( 108 ) $ 26 $ ( 30 ) $ 15

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

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

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

Second Quarter 2025 Form 10-Q 41

Remeasurement gains of $ 108 million for the third quarter of 2025 are primarily related to favorable asset performance compared to expected return on plan assets and changes in actuarial assumptions, partially offset by a decrease in the liability discount rate.

Remeasurement gains of $ 30 million in the first nine months of 2025 are primarily related to favorable asset performance compared to expected return on plan assets, partially offset by a decrease in the liability discount rate and changes in actuarial assumptions.

The weighted average discount rate used to measure the pension benefit obligation decreased to 5.44 % on September 30, 2025 compared to 5.51 % on June 30, 2025 and 5.71 % at December 31, 2024 resulting in losses for the third quarter and first nine months of 2025.

For the third quarter of 2025, the actual return on plan assets was higher than the expected return due to higher public equity valuations and higher fixed income valuations driven by lower rates and tighter

Third Quarter 2025 Form 10-Q 41

Notes to Condensed Consolidated Financial Statements

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

For the first six months

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

credit spreads.

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

The Company made a discretionary contribution of $ 35 million to the qualified pension plan in September 2025.

Note 14 Supplemental Cash Flow Information

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

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

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

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

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

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

Non-cash investing activities include $ 44 million and $ 70 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, commercial mortgages and limited partnerships for the nine months ended September 30, 2025 and 2024, respectively.

Non-cash investing activities include $ 1 million and $ 19 million related to right-of-use property and equipment obtained in exchange for lease obligations for the nine months ended September 30, 2025 and 2024, respectively.

Non-cash investing activities include $ 1 million related to right-of-use real estate obtained in exchange for lease obligations for the nine months ended September 30, 2024.

Non-cash financing activities include $ 26 million and $ 28 million related to the issuance of Allstate common shares for vested equity awards for the nine months ended September 30, 2025 and 2024, respectively.

Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows

include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $ 80 million and $ 86 million for the nine months ended September 30, 2025 and 2024, respectively.

Non-cash operating activities include $ 45 million and $ 50 million related to right-of-use assets obtained in exchange for lease obligations for the nine months ended September 30, 2025 and 2024, respectively.

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

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

($ in millions) Six months ended June 30,

($ in millions) Nine months ended September 30,

Cash flows from operating activities

3 unchanged sentences

Operating cash flow provided (used) 183 ( 130 )

Net change in cash ( 1 ) —

Net change in proceeds managed $ 182 $ ( 130 )

Net change in liabilities

6 unchanged sentences

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

($ in millions) Three months ended June 30,

($ in millions) Three months ended September 30,

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

8 unchanged sentences

Other comprehensive income (loss) $ 454 $ ( 99 ) $ 355 $ 1,642 $ ( 365 ) $ 1,277

Six months ended June 30,

Nine months ended September 30,

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

9 unchanged sentences

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

Second Quarter 2025 Form 10-Q 43

Third Quarter 2025 Form 10-Q 43

Report of Independent Registered Public Accounting Firm

1 unchanged sentence

Results of Review of Interim Financial Information

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

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

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

7 unchanged sentences

We conducted our reviews in accordance with standards of the PCAOB.

A review of the interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.

2 unchanged sentences

Chicago, Illinois

July 30, 2025

November 5, 2025

44 www.allstate.com

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

What changed 10-Q

Item 1. Financial Statements