4 unchanged sentences
of The Allstate Corporation annual report on Form 10-K for 2024, filed February 24, 2025.
−Removed: Further analysis of our insurance segments is provided in the Property-Liability Operations and Segment Results sections, including Allstate Protection, Run-off Property-Liability, Protection Services and Allstate Health and Benefits, of Management’s Discussion and Analysis (“MD&A”).
+Added: Further analysis of our insurance segments Allstate Protection and Run-off Property-Liability, together Property-Liability Operations, and Protection Services, is provided in Management’s Discussion and Analysis (“MD&A”).
The segments are consistent with the way in which the chief operating decision maker reviews financial performance and makes decisions about the allocation of resources.
+Added: The dispositions of the employer voluntary benefits (“EVB”) and group health businesses did not qualify for discontinued operations.
+Added: 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.
+Added: 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.
Measuring segment profit or loss
−Removed: The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments.
+Added: The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services and Corporate segments.
We use these measures in our evaluation of results of operations to analyze profitability.
9 unchanged sentences
Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S.
−Removed: government fiscal and monetary policies, conflict in the Middle East, the
−Removed: Russia/Ukraine conflict, supply chain disruptions and labor shortages.
+Added: government fiscal and monetary policies, the Russia/Ukraine conflict, supply chain disruptions and labor shortages.
Tariffs Beginning on April 2, 2025, the U.S.
7 unchanged sentences
• Fewer auto new issued applications due to lower new and used vehicle sales
−Removed: • Reduced demand in Allstate Dealer Services due to lower new vehicle sales
−Removed: • Lower premiums written from reduced retail sales in Allstate Protection Plans
−Removed: • Higher claims costs at Allstate Protection Plans
+Added: • Reduced demand in Dealer Services due to lower new vehicle sales
+Added: • Lower premiums written from reduced U.S.
+Added: retail sales in Protection Plans
+Added: • Higher claims costs at Protection Plans
• Bad debt and credit allowance exposure in all businesses
1 unchanged sentence
This is not inclusive of all potential impacts and should not be treated as such.
+Added: Third Quarter 2025 Form 10-Q 45
Corporate strategy
10 unchanged sentences
• Driving organizational transformation
−Removed: Second Quarter 2025 Form 10-Q 45
We are expanding Protection Services businesses internationally and by leveraging the Allstate brand, customer base and capabilities.
−Removed: On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits (“EVB”) business, reported in the Allstate Health and Benefits segment.
−Removed: We recorded a gain on the sale of $890 million or $643 million, after-tax in the second quarter of 2025.
−Removed: On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to
−Removed: sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business, reported in the Allstate Health and Benefits segment.
−Removed: The assets and liabilities of the business are classified as held for sale at June 30, 2025.
−Removed: The transaction closed on July 1, 2025, and we expect to record a gain on sale of approximately $500 million in the third quarter of 2025.
−Removed: See Note 3 of the condensed consolidated financial statements for further information on the employer voluntary benefits and group health dispositions.
+Added: On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits (“EVB”) business.
+Added: We recorded a gain on the sale of $888 million or $641 million, after-tax for the nine months ended September 30, 2025.
+Added: On July 1, 2025, we closed the sale of Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business.
+Added: We recorded a gain on sale of approximately $722 million or $506 million, after-tax in the third quarter of 2025.
+Added: See Note 3 of the condensed consolidated financial statements for further information on the EVB and group health dispositions.
Consolidated net income applicable to common shareholders
($ in millions)
−Removed: Consolidated net income applicable to common shareholders increased $1.78 billion to $2.08 billion in the second quarter of 2025 compared to the second quarter of 2024, primarily due to higher earned premium and a gain on sale of the employer voluntary benefits business.
−Removed: Consolidated net income applicable to common shareholders increased $1.16 billion to $2.65 billion in the first six months of 2025 compared to the same period of 2024, primarily due to higher earned premium and a gain on sale of the employer voluntary benefits business, partially offset by higher catastrophe losses.
+Added: Consolidated net income applicable to common shareholders increased $2.56 billion to $3.72 billion in the third quarter of 2025 and increased $3.71 billion to $6.36 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher underwriting income and gains on dispositions.
Total revenues
($ in millions)
−Removed: Total revenues increased $919 million to $16.63 billion and increased $2.11 billion to $33.09 billion in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to higher homeowners and auto insurance policies in force and premium rate increases.
+Added: Total revenues increased 3.8% to $17.26 billion in the third quarter of 2025 and increased 5.8% to $50.34 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher auto and homeowners insurance policies in force and premium rate increases.
Net investment income
($ in millions)
−Removed: Net investment income increased $42 million to $754 million in the second quarter of 2025 and increased $132 million to $1.61 billion in the first six months of 2025 compared to the same periods of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results.
−Removed: Financial highlights
−Removed: Investments totaled $77.44 billion as of June 30, 2025, increasing from $72.61 billion as of December 31, 2024.
−Removed: Allstate shareholders’ equity was $24.02 billion as of June 30, 2025, increasing from $21.44 billion as of
−Removed: December 31, 2024, primarily due to net income and unrealized net capital gains on investments in 2025 compared to losses at December 31, 2024, partially offset by dividends to shareholders.
+Added: Net investment income increased $166 million to $949 million in the third quarter of 2025 and increased $298 million to $2.56 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher market-based and performance-based investment results.
46 www.allstate.com
−Removed: Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $82.40 as of June 30, 2025, an increase of 32.6% from $62.14 as of June 30, 2024, and an increase of 13.9% from $72.35 as of December 31, 2024.
−Removed: Return on average Allstate common shareholders’ equity for the twelve months ended June 30, 2025, was 29.6%, an increase of 10.3 points from 19.3% for the twelve months ended June 30, 2024.
−Removed: The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending June 30, 2025.
+Added: Financial highlights
+Added: Investments totaled $82.33 billion as of September 30, 2025, increasing from $72.61 billion as of December 31, 2024.
+Added: Allstate shareholders’ equity was $27.51 billion as of September 30, 2025, increasing from $21.44 billion as of December 31, 2024, primarily due to net income and an increase in unrealized net capital gains on investments in 2025, partially offset by common share repurchases and dividends to shareholders.
+Added: Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common
+Added: shares outstanding) was $95.95 as of September 30, 2025, an increase of 36.4% from $70.35 as of September 30, 2024, and an increase of 32.6% from $72.35 as of December 31, 2024.
+Added: Return on average Allstate common shareholders’ equity for the twelve months ended September 30, 2025, was 37.2%, an increase of 11.1 points from 26.1% for the twelve months ended September 30, 2024.
+Added: The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending September 30, 2025.
Summarized consolidated financial results
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
14 unchanged sentences
Gain on disposition of operations
+Added: 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
−Removed: Net (loss) income attributable to noncontrolling interest (10) 16 (9) (4)
+Added: Net loss attributable to noncontrolling interest (2) (26) (11) (30)
Net income attributable to Allstate 3,746 1,190 6,450 2,739
2 unchanged sentences
Segment highlights
−Removed: Allstate Protection underwriting income was $1.28 billion in the second quarter of 2025 compared to an underwriting loss of $142 million in the second quarter of 2024, due to increased premiums earned and lower losses, partially offset by higher expenses.
−Removed: Underwriting income totaled $1.65 billion in the first six months of 2025 compared to underwriting income of $761 million in the first six months of 2024, due to increased premiums earned, partially offset by higher catastrophe losses and expenses.
−Removed: Catastrophe losses were $1.99 billion and $4.19 billion in the second quarter and first six months of 2025, respectively, compared to $2.12 billion and $2.85 billion in the second quarter and first six months of 2024, respectively.
−Removed: Premiums written increased 5.4% to $15.05 billion and increased 6.9% to $29.34 billion in the second quarter and first six months of 2025, respectively,
−Removed: compared to the same periods of 2024, reflecting higher homeowners and auto insurance policies in force and premium rate increases.
−Removed: Protection Services adjusted net income was $60 million in the second quarter of 2025 compared to $55 million in the second quarter of 2024.
−Removed: Adjusted net income was $115 million the first six months of 2025 compared to $109 million in the six months of 2024.
−Removed: The increase in both periods was primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses at Arity.
−Removed: Premiums and other revenue increased 13.4% to $806 million and increased 14.0% to $1.61 billion in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to growth at Allstate Protection Plans.
−Removed: Allstate Health and Benefits adjusted net income decreased $54 million to $4 million in the second quarter of 2025 and decreased $80 million to $34
−Removed: Second Quarter 2025 Form 10-Q 47
−Removed: million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Excluding the results of the employer voluntary benefits business sold on April 1, adjusted net income decreased $26 million to $4 million in the second quarter of 2025 and decreased $57 million to $12 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: The declines were primarily due to increased benefit utilization in group health and individual health.
−Removed: Premiums and contract charges decreased 50.4% to $235 million in the second quarter of 2025 and decreased 24.2% to $722 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Excluding the results of the employer voluntary benefits business sold on April 1, premiums and contract charges increased 3.1% to $235 million in the second quarter of 2025 and increased 4.6% to $479 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: The increases were due to growth in individual health and group health.
+Added: Allstate Protection underwriting income was $3.04 billion in the third quarter of 2025 compared to underwriting income of $555 million in the third quarter of 2024, due to lower catastrophe losses, increased premiums earned and the benefit of prior year reserve releases.
+Added: Underwriting income totaled $4.69 billion in the first nine months of 2025 compared to underwriting income of $1.32 billion in the first nine months of 2024, due to increased premiums earned and the benefit of prior year reserve releases, partially offset by higher expenses.
+Added: Catastrophe losses were $558 million and $4.75 billion in the third quarter and first nine months of 2025, respectively, compared to $1.70 billion and $4.55 billion in the third quarter and first nine months of 2024, respectively.
+Added: Premiums written increased 6.3% to $15.63 billion in the third quarter of 2025 and increased 6.7% to $44.97 billion in the first nine months of 2025 compared to the same periods of 2024, reflecting higher auto and homeowners insurance policies in force and premium rate increases.
+Added: Third Quarter 2025 Form 10-Q 47
+Added: Protection Services adjusted net income was $46 million in the third quarter of 2025 compared to $58 million in the third quarter of 2024.
+Added: Adjusted net income was $161 million the first nine months of 2025 compared to $167 million in the nine months of 2024.
+Added: The decrease in both periods was primarily due to higher expenses at Arity and increased claims at Protection Plans, partially offset by premium growth at Protection Plans.
+Added: Premiums and other revenue increased 12.7% to $844 million the third quarter of 2025 and increased 13.5% to $2.45 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to growth at Protection Plans.
Income taxes The effective tax rate is the ratio of income tax expense (benefit) divided by income (loss) from operations before income tax expense.
−Removed: For the six months ended June 30, 2025, we reported an effective tax rate of 21.2% based on total income tax expense of $727 million on total income from operations before income tax expense of $3.42 billion.
−Removed: The effective rate for the six months ended June 30, 2025, is higher than the federal statutory rate of 21%, primarily due to non-deductible goodwill arising from the sale of the employer voluntary benefits business, offset by tax benefits derived from tax credits, tax-exempt interest income and share-based payments.
−Removed: For the six months ended June 30, 2024, we reported an effective tax rate of 18.4% based on a total income tax expense of $349 million on income from operations before income tax benefit of $1.89 billion.
−Removed: The effective tax rate for the six months ended 2024 was lower than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, shared-based payments and tax-exempt interest income.
+Added: For the first nine months ended September 30, 2025, we reported an effective tax rate of 21.9% based on total
+Added: income tax expense of $1.80 billion on total income from operations before income tax expense of $8.24 billion.
+Added: The effective rate for the first nine months ended September 30, 2025, is higher than the federal statutory rate of 21%, primarily due to non-deductible goodwill and higher state income taxes arising from the sales of the EVB and group health businesses, offset by tax benefits derived from tax credits, tax-exempt interest income and share-based payments.
+Added: For the first nine months ended September 30, 2024, we reported an effective tax rate of 18.2% based on a total income tax expense of $603 million on income from operations before income tax benefit of $3.31 billion.
+Added: The effective tax rate for the first nine months ended 2024 was lower than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, shared-based payments and tax-exempt interest income.
Reconciliation of the statutory federal income tax rate to the effective income tax rate
Three months ended
−Removed: June 30, Six months ended
+Added: September 30, Nine months ended
+Added: September 30,
($ in millions) 2025 2024 2025 2024
7 unchanged sentences
Tax credits (21) (0.4) (19) (1.3) (49) (0.6) (45) (1.3)
−Removed: Share-based payments (10) (0.4) (2) (0.5) (20) (0.6) (14) (0.7)
Tax-exempt income (8) (0.2) (8) (0.6) (27) (0.3) (19) (0.5)
+Added: Share-based payments (3) (0.1) (15) (1.0) (23) (0.2) (29) (0.9)
Uncertain tax positions — — (3) (0.2) (14) (0.1) (3) (0.1)
1 unchanged sentence
Effective income tax rate on income from operations $ 1,075 22.3 % $ 254 17.9 % $ 1,802 21.9 % $ 603 18.2 %
−Removed: (1) The sale of the employer voluntary benefits business on April 1, 2025 resulted in the disposal of non-deductible goodwill.
+Added: (1) The sales of the employer voluntary benefits and group health businesses on April 1, 2025 and July 1, 2025, respectively, resulted in the disposal of non-deductible goodwill.
On July 4, 2025, H.R.
2 unchanged sentences
Key provisions include the permanent reinstatement of full and immediate expensing for domestic research and development expenditures, new limitations on the deductibility of corporate charitable contributions, and a substantial rollback of renewable energy tax credits, including transferability of certain energy-related credits, while at the same time expanding availability of tax incentives for affordable housing developments.
−Removed: Based on our current operations, we do not expect these changes to have a significant impact to our consolidated financial statements.
+Added: These changes do not have a significant impact to our consolidated financial statements.
48 www.allstate.com
36 unchanged sentences
states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written.
−Removed: Second Quarter 2025 Form 10-Q 49
+Added: Third Quarter 2025 Form 10-Q 49
Property-Liability Operations
Underwriting results
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions, except ratios) 2025 2024 2025 2024
8 unchanged sentences
Amortization of purchased intangibles (46) (52) (138) (154)
−Removed: Underwriting income (loss) $ 1,280 $ (145) $ 1,640 $ 753
+Added: Underwriting income $ 2,894 $ 495 $ 4,534 $ 1,248
Catastrophe losses
19 unchanged sentences
Effect of Run-off Property-Liability business on combined ratio 1.0 0.5 0.3 0.2
−Removed: (1) Favorable reserve reestimates are shown in parentheses.
+Added: (1) Reserve releases are shown in parentheses.
(2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.
3 unchanged sentences
Underwriting results
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
7 unchanged sentences
Amortization of purchased intangibles (46) (52) (138) (154)
−Removed: Underwriting income (loss) $ 1,283 $ (142) $ 1,647 $ 761
+Added: Underwriting income $ 3,040 $ 555 $ 4,687 $ 1,316
Catastrophe losses $ 558 $ 1,703 $ 4,750 $ 4,554
−Removed: Underwriting income was $1.28 billion in the second quarter of 2025 compared to underwriting loss of $142 million in the second quarter of 2024 due to increased premiums earned and lower losses, partially offset by higher expenses.
−Removed: Underwriting income increased 116% or $886 million in the first six months of 2025 compared to the first six months of 2024, due to increased premiums earned, partially offset by higher catastrophe losses and expenses.
+Added: Underwriting income was $3.04 billion in the third quarter of 2025 compared to underwriting income of $555 million in the third quarter of 2024, due to lower catastrophe losses, increased premiums earned and the benefit of prior year reserve releases.
+Added: Underwriting income increased $3.37 billion to $4.69 billion in the first nine months of 2025 compared to the first nine months of 2024, due to increased premiums earned and the benefit of prior year reserve releases, partially offset by higher expenses.
Change in underwriting results from prior year period - three months ended
($ in millions)
−Removed: Change in underwriting results from prior year period - six months ended
+Added: Change in underwriting results from prior year period - nine months ended
($ in millions)
−Removed: Second Quarter 2025 Form 10-Q 51
+Added: Third Quarter 2025 Form 10-Q 51
Segment Results Allstate Protection
Underwriting income (loss)
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
6 unchanged sentences
Other business lines (1)
+Added: 52 40 147 140
Answer Financial 1 3 10 10
6 unchanged sentences
Premiums written
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
6 unchanged sentences
Premiums earned
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
6 unchanged sentences
Reconciliation of premiums written to premiums earned
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
5 unchanged sentences
Policies in force
−Removed: As of June 30,
+Added: As of September 30,
(In thousands)
6 unchanged sentences
Allstate Protection Segment Results
−Removed: Auto insurance premiums written increased 2.7% or $249 million in the second quarter of 2025 compared to the second quarter of 2024 and 4.0% or $740 million in the first six months of 2025 compared to the first six months of 2024, primarily due to the following factors:
−Removed: • Increase in Allstate brand average premiums driven by rate increases that have moderated as we focus on growth and continued rollout of Affordable, Simple and Connected auto product.
−Removed: In the six months ended June 30, 2025 rate increases of 4.2% were implemented in 46 locations, resulting in total insurance premium impact of 1.8%
−Removed: • PIF increased 0.5% or 119 thousand to 25,243 thousand as of June 30, 2025 compared to June 30, 2024
+Added: Auto insurance premiums written increased 3.5% or $330 million in the third quarter of 2025 and increased 3.8% or $1.07 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to the following factors:
+Added: • Rate increases that have moderated as we focus on growth and continued rollout of Affordable, Simple and Connected auto products.
+Added: In the nine months ended September 30, 2025, rate increases of 3.6% were implemented in 52 locations, resulting in total insurance premium impact of 2.4%
+Added: • PIF increased 1.3% or 334 thousand to 25,332 thousand as of September 30, 2025 compared to September 30, 2024
• Increased new issued applications in all channels
• In locations not achieving acceptable returns, we expect to continue to pursue targeted rate increases.
−Removed: In states where we are achieving acceptable returns, we plan to implement rates that keep pace with increasing costs
+Added: In states where we are achieving acceptable returns, we will focus on implementing rates to keep pace with increasing costs and explore opportunities for rate investments towards growth
Auto premium measures and statistics
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2025 2024 Change 2025 2024 Change
5 unchanged sentences
696 597 16.6 2,067 1,714 20.6
−Removed: 708 538 31.6 1,465 1,048 39.8
+Added: Direct 809 620 30.5 2,274 1,668 36.3
Total new issued applications 2,328 1,892 23.0 % 6,676 5,290 26.2 %
Allstate brand average premium $ 853 $ 852 0.1 % $ 852 $ 839 1.5 %
−Removed: Homeowners insurance premiums written increased 14.3% or $550 million in the second quarter of 2025 compared to the second quarter of 2024 and increased 16.8% or $1.13 billion in the first six months of 2025 compared to the first six months of 2024, primarily due to the following factors:
+Added: Homeowners insurance premiums written increased 13.1% or $534 million in the third quarter of 2025 and increased 15.4% or $1.66 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to the following factors:
• Higher Allstate brand average premiums from implemented rate increases and inflation in insured home replacement costs and other aging factor adjustments, combined with policies in force growth
−Removed: • In the six months ended June 30, 2025, rate increases of 6.9% were implemented in 36 locations, resulting in total estimated insurance premium impact of 2.9%, excluding the impact of changes in insured home replacement costs
−Removed: • PIF increased 2.3% or 170 thousand to 7,596 thousand as of June 30, 2025 compared to June 30, 2024, primarily in the direct and exclusive agency
−Removed: channels, partially offset in the independent agency channel
+Added: • In the nine months ended September 30, 2025, rate increases of 8.0% were implemented in 44 locations, resulting in total estimated insurance premium impact of 4.3%, excluding the impact of changes in insured home replacement costs
+Added: • PIF increased 2.1% or 159 thousand to 7,642 thousand as of September 30, 2025 compared to September 30, 2024, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel
• Increased new issued applications in direct and exclusive agency channels
2 unchanged sentences
We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.
−Removed: As we improve underwriting margins to targeted levels through underwriting and rate actions, policy growth in the independent agency channel may be negatively impacted.
Homeowners premium measures and statistics
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2025 2024 Change 2025 2024 Change
2 unchanged sentences
Exclusive agency 262 260 0.8 % 745 719 3.6 %
−Removed: 251 241 4.1 % 483 459 5.2 %
Independent agency 41 63 (34.9) 136 172 (20.9)
69 39 76.9 164 96 70.8
−Removed: 54 32 68.8 95 57 66.7
Total new issued applications 372 362 2.8 % 1,045 987 5.9 %
Allstate brand average premium $ 2,296 $ 2,050 12.0 % $ 2,262 $ 1,991 13.6 %
−Removed: Other personal lines premiums written increased 2.4% or $20 million in the second quarter of 2025 compared to the second quarter of 2024 and increased 5.9% or $89 million in the first six months of 2025 compared to the first six months of 2024, primarily due
−Removed: to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers.
+Added: Other personal lines premiums written increased 8.6% or $70 million in the third quarter of 2025 and increased 6.8% or $159 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers.
We are not writing new condominium business in Florida, and we are non-renewing certain policies in Florida.
−Removed: Second Quarter 2025 Form 10-Q 53
+Added: Commercial lines premiums written decreased 2.9% or $3 million in the third quarter of 2025 compared to the third quarter of 2024, primarily driven by the run-off of Allstate brand, partially offset by growth in National General brand.
+Added: Commercial lines premiums written decreased 28.2% or $116 million in the first nine months of 2025 compared to the first nine months of 2024, primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew policies.
+Added: We are committed to
+Added: Third Quarter 2025 Form 10-Q 53
Segment Results Allstate Protection
−Removed: Commercial lines premiums written decreased 33.3% or $50 million in the second quarter of 2025 compared to the second quarter of 2024 and decreased 36.8% or $113 million in the first six months of 2025 compared to the first six months of 2024, primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew policies.
−Removed: We are committed to offering comprehensive commercial products to customers through our exclusive agency, independent agency and direct channels, with solutions offered by the National General brand, NEXT Insurance and other brokered solutions.
−Removed: Other business lines premiums written decreased 0.6% or $1 million in the second quarter of 2025 compared to the second quarter of 2024.
−Removed: Other business lines premiums written increased 12.8% or $37 million in the first six months of 2025 compared to the first six months of 2024, due to growth in the lender-placed business.
+Added: offering comprehensive commercial products to customers through our exclusive agency, independent agency and direct channels.
+Added: These offerings include solutions from National General as well as brokered products tailored to meet diverse needs across our business customers.
+Added: Other business lines premiums written decreased 4.6% or $8 million in the third quarter of 2025 compared to the third quarter of 2024, due to lower
+Added: lender-placed auto premiums.
+Added: Other business lines premiums written increased 6.3% or $29 million in the first nine months of 2025 compared to the first nine months of 2024, due to growth in the lender-placed homeowners business.
GAAP operating ratios include loss ratio, expense ratio and combined ratio to analyze our profitability trends.
4 unchanged sentences
2025 2024 2025 2024 2025 2024
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
60.6 71.9 21.4 22.9 82.0 94.8
4 unchanged sentences
Other business lines (2)
+Added: 27.9 72.4 39.8 1.3 67.7 73.7
Total 57.3 74.4 21.8 21.5 79.1 95.9
1 unchanged sentence
Impact of restructuring and related charges 0.1 0.1 0.1 0.1
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
Auto 64.9 73.8 21.5 21.8 86.4 95.6
4 unchanged sentences
Other business lines (2)
+Added: 38.8 55.7 31.4 12.3 70.2 68.0
Total 67.8 75.6 21.3 21.1 89.1 96.7
1 unchanged sentence
Impact of restructuring and related charges 0.1 0.1 0.1 0.1
−Removed: (1) Expense ratio includes other revenue of $47 million and $91 million for the three and six months ended June 30, 2025, respectively, compared to $26 million and $64 million for the three and six months ended June 30, 2024, respectively, for fees on auto assigned risk policies.
+Added: (1) Expense ratio includes other revenue of $43 million and $134 million for the three and nine months ended September 30, 2025, respectively, compared to $97 million and $161 million for the three and nine months ended September 30, 2024, respectively, for fees on auto assigned risk policies.
+Added: (2) Expense ratio includes profit-sharing commissions on lender-placed business, which decreased in 2024 due to higher losses and increased in 2025 as losses declined.
(3) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.
5 unchanged sentences
2025 2024 2025 2024 2025 2024 2025 2024
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
Auto 60.6 71.9 0.7 3.0 (5.0) (0.7) — (0.1)
4 unchanged sentences
Total 57.3 74.4 3.8 12.4 (3.9) (0.2) (0.2) (0.1)
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
Auto 64.9 73.8 1.7 2.7 (4.1) (1.1) (0.1) (0.1)
4 unchanged sentences
Total 67.8 75.6 11.1 11.4 (2.8) (1.0) (0.1) (0.8)
−Removed: (1) The ten-year average effect of total catastrophe losses on the total combined ratio was 13.8 points and 11.2 points in the second quarter and first six months of 2025, respectively.
−Removed: (2) The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 44.8 points and 37.1 points in the second quarter and first six months of 2025, respectively.
−Removed: Auto loss ratio decreased 9.2 points and decreased 7.7 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024 driven by increased earned premiums, lower claim frequency and higher favorable non-catastrophe reserve reestimates.
+Added: (1) The ten-year average effect of total catastrophe losses on the total combined ratio was 8.6 points and 10.3 points in the third quarter and first nine months of 2025, respectively.
+Added: (2) The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 24.8 points and 32.9 points in the third quarter and first nine months of 2025, respectively.
+Added: Auto loss ratio decreased 11.3 points in the third quarter of 2025 and decreased 8.9 points in the first nine months of 2025 compared to the same periods of 2024, driven by increased earned premiums, lower claim frequency and the benefit of prior year non-catastrophe reserve releases.
Estimated report year 2025 incurred claim severity for Allstate brand increased compared to report year 2024 for major coverages due to higher repair costs, mix of total loss frequency, medical consumption and attorney representation.
1 unchanged sentence
We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections and accelerating resolution of bodily injury claims.
−Removed: Homeowners loss ratio decreased 9.1 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to increased premiums earned.
−Removed: Homeowners loss ratio increased 10.8 points in the first six months of 2025 compared to the first six months of 2024, primarily due to higher catastrophe losses, partially offset by increased premiums earned.
−Removed: Gross claim frequency, excluding catastrophes, decreased in the second quarter and first six months of 2025 compared to the same periods of 2024.
−Removed: Paid claim severity, excluding catastrophes, increased in the second quarter and first six months of 2025 compared to the same periods of 2024 due to a mix of fire and wind/hail perils.
+Added: Homeowners loss ratio decreased 27.8 points in the third quarter of 2025 compared to the third quarter of 2024, primarily due to lower catastrophe losses and increased premiums earned.
+Added: Homeowners loss ratio decreased 2.5 points in the first nine months of 2025 compared to the first nine months of 2024, primarily due to increased premiums earned, partially offset by higher losses.
+Added: Gross claim frequency, excluding catastrophes, decreased in the third quarter and first nine months of 2025 compared to the same periods of 2024.
+Added: Paid claim severity, excluding catastrophes, increased in the third quarter and first nine months of 2025 compared to the same periods of 2024, due to a mix of fire and wind/hail perils.
Homeowners paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the quarter.
−Removed: Other personal lines loss ratio decreased 5.9 points and decreased 0.3 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024 primarily due to increased
−Removed: premiums earned, partially offset by higher catastrophe losses.
−Removed: Commercial lines loss ratio decreased 74.2 points and 65.4 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to lower losses, partially offset by a decrease in premiums earned driven by the strategic decision to exit an unprofitable business.
−Removed: Other business lines loss ratio decreased 10.9 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to lower losses and increased premiums earned.
−Removed: Other business lines loss ratio decreased 2.6 points in the first six months of 2025 compared to the first six months of 2024, primarily due to higher favorable non-catastrophe reserve reestimates and increased premiums earned, partially offset by higher catastrophe losses.
−Removed: Catastrophe losses decreased $130 million to $1.99 billion in the second quarter of 2025 compared to the second quarter of 2024.
−Removed: Catastrophe losses increased $1.34 billion to $4.19 billion in the first six months of 2025 compared to the first six months of 2024, primarily due to the California wildfires and larger losses per event from wind/hail events.
−Removed: We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event.
−Removed: Catastrophes are caused by various natural events including high winds, winter storms and freezes,
−Removed: Second Quarter 2025 Form 10-Q 55
+Added: Other personal lines loss ratio decreased 21.1 points in the third quarter of 2025 compared to the
+Added: third quarter of 2024, primarily due to lower losses and increased premiums earned.
+Added: Other personal lines loss ratio decreased 7.6 points in the first nine months of 2025 compared to the first nine months of 2024, primarily due to increased premiums earned, partially offset by higher non-catastrophe losses.
+Added: Commercial lines loss ratio decreased 104.0 points in the third quarter of 2025 and decreased 77.4 points in the first nine months of 2025 compared to the same periods of 2024, primarily due to the benefit of prior year reserve releases and lower losses, partially offset by a decrease in premiums earned driven by the strategic decision for the Allstate brand to stop writing new business and non-renew policies.
+Added: Other business lines loss ratio decreased 44.5 points in the third quarter of 2025 compared to the third quarter of 2024, primarily due to lower losses and the benefit of prior year reserve releases.
+Added: Other business lines loss ratio decreased 16.9 points in the first nine months of 2025 compared to the first nine months of 2024, primarily due to the benefit of prior year non-catastrophe reserve releases.
+Added: Catastrophe losses decreased $1.15 billion to $558 million in the third quarter of 2025 compared to the third quarter of 2024, primarily due to fewer and less severe events as well as the absence of any hurricanes and tropical storms.
+Added: Catastrophe losses increased $196 million to $4.75 billion in the first nine months of 2025 compared to the first nine months of 2024.
+Added: We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event
+Added: Third Quarter 2025 Form 10-Q 55
Segment Results Allstate Protection
−Removed: tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.
+Added: threshold of average claims in a specific area, occurring within a certain amount of time following the event.
+Added: Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.
We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents.
3 unchanged sentences
The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process.
−Removed: Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting their ability to inspect losses, determining whether losses are covered by our homeowners policy
−Removed: (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.
+Added: Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting
+Added: their ability to inspect losses, determining whether losses are covered by our homeowners policy (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.
In these situations, we may need to adapt our practices to accommodate these circumstances in order to determine a best estimate of our losses from a catastrophe.
1 unchanged sentence
Catastrophe losses by the type of event
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) Number of events 2025 Number of events 2024 Number of events 2025 Number of events 2024
+Added: Hurricanes/tropical storms — $ — 5 $ 953 — $ — 5 $ 953
Tornadoes — — — — — — 1 57
12 unchanged sentences
The current catastrophe reinsurance program supports our risk and return framework which incorporates robust economic capital modeling and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires.
−Removed: As of June 30, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.0 billion, net of reinsurance.
+Added: As of September 30, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.1 billion, net of reinsurance.
We continually review our aggregate risk appetite and the cost and availability of reinsurance to optimize the risk and return profile of this exposure.
−Removed: During the second quarter of 2025, we placed one single-year term contract as part of our 2025-2026 Nationwide Excess Catastrophe Reinsurance Program, added a U.S.
−Removed: Homeowners Aggregate contract, and completed the placement of our 2025-2026 Florida
−Removed: Excess Catastrophe Reinsurance Program (“Florida Program”), the National General Lender Services Standalone Program and the National General Flood Excess of Loss Reinsurance Contract.
−Removed: 2025-2026 Nationwide Excess Catastrophe Reinsurance Program updates include one single-year term contract providing $217 million of placed limit in excess of a $4.25 billion retention on a per occurrence basis.
−Removed: Homeowners Aggregate A seven-month duration aggregate contract was placed with a risk period of June 1, 2025 to December 31, 2025.
−Removed: This contract provides $325 million of placed limit in excess of a $3.50 billion retention for US Homeowners catastrophe events, including the state of Florida.
−Removed: Florida Program Our 2025 Florida Program provides coverage for property policies of Castle Key Insurance Company and certain affiliate companies for Florida catastrophe events up to $1.10 billion of loss less a $30 million retention.
−Removed: This includes coverage for events up to $951 million of loss less a $30 million
+Added: The total cost of our property catastrophe reinsurance programs, excluding reinstatement
+Added: premiums, during the third quarter and first nine months of 2025 was $352 million and $914 million, respectively, compared to $298 million and $880 million in the third quarter and first nine months of 2024.
+Added: Catastrophe placement premiums reduce net written and earned premium with approximately 82% of the reduction related to homeowners premium.
+Added: Prior year reserve reestimates Reserve reestimates, including catastrophes, decreased reserves by $570 million and $1.20 billion in the third quarter and first nine months of 2025, respectively.
+Added: Reserve reestimates 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.
56 www.allstate.com
Allstate Protection Segment Results
−Removed: retention on a first event occurrence, in addition to the Florida Hurricane Catastrophe Fund (“FHCF”) which provides a combined placed limit of $153 million.
−Removed: The Florida Program includes reinsurance agreements placed in the traditional market, FHCF and the insurance-linked securities (“ILS”) market as follows:
−Removed: • For qualifying losses to personal lines property in Florida caused by storms the National Hurricane Center declares to be hurricanes, the Florida Program has three mandatory FHCF inuring contracts providing $170 million of limits, 90% placed.
−Removed: • Traditional market placements comprise reinsurance limits for losses to personal lines property in Florida arising out of multiple perils including those not covered by the FHCF contracts.
−Removed: One contract provides combined $405 million of placed limit with one automatic reinstatement of limits with premium due, while a separate contract provides coverage to partially offset these reinstatement premiums.
−Removed: An additional contract provides $66 million of reinsurance limit for a second event.
−Removed: • ILS placements provide $516 million of placed limits for qualifying losses to personal lines property in Florida caused by a named storm event, a severe weather event, an earthquake event, a fire event, a volcanic eruption event, or a meteorite impact event.
−Removed: National General Lender Services Standalone Program is placed in the traditional market and provides $410 million of placed limits, subject to a $90
−Removed: million retention, with one automatic reinstatement of limits.
−Removed: Inuring contracts include the National General FHCF contract providing $130 million of limits in excess of a $73 million retention, 90% placed.
−Removed: National General Flood Excess of Loss Reinsurance Contract provides $50 million of placed limits, subject to a $20 million retention, with one automatic reinstatement of limits.
−Removed: For a complete summary of the 2025 reinsurance placement, please read this in conjunction with the discussion and analysis in Part I.
−Removed: Management’s Discussion and Analysis - Allstate Protection Segment Results, Catastrophe Reinsurance of The Allstate Corporation Form 10-Q for the quarterly period ended March 31, 2025.
−Removed: The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the second quarter and first six months of 2025 was $305 million and $562 million, respectively, compared to $296 million and $582 million in the second quarter and first six months of 2024.
−Removed: Catastrophe placement premiums reduce net written and earned premium with approximately 82% of the reduction related to homeowners premium.
−Removed: Prior year reserve reestimates Favorable reserve reestimates, including catastrophes, were $372 million and $626 million in the second quarter and first six months of 2025, respectively, primarily due to favorable reserve reestimates in personal auto lines.
For a more detailed discussion on reinsurance and reserve reestimates, see Note 9 of the condensed consolidated financial statements.
Prior year reserve reestimates
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
Prior year reserve
11 unchanged sentences
Total Allstate Protection $ (570) $ (28) (3.9) (0.2) $ (1,196) $ (387) (2.8) (1.0)
−Removed: (1) Favorable reserve reestimates are shown in parentheses.
+Added: (1) Reserve releases are shown in parentheses.
(2) Ratios are calculated using Allstate Protection premiums earned.
−Removed: Second Quarter 2025 Form 10-Q 57
−Removed: Segment Results Allstate Protection
−Removed: Expense ratio decreased 0.5 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to higher earned premium growth relative to costs.
−Removed: Expense ratio increased 0.2 points in the first six months of 2025 compared to the first six months of 2024, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to costs.
+Added: Expense ratio increased 0.3 points and increased 0.2 points in the third quarter and first nine months of 2025, respectively, compared to the same periods of 2024, primarily due to an increase in advertising costs, higher expenses for lender-placed business and lower fees on involuntary auto policies included in other revenue, partially offset by higher earned premium growth relative to costs.
Impact of specific costs and expenses on the expense ratio
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions, except ratios) 2025 2024 Change 2025 2024 Change
15 unchanged sentences
Total expense ratio 21.8 21.5 0.3 21.3 21.1 0.2
−Removed: 58 www.allstate.com
−Removed: Run-off Property-Liability Segment Results
+Added: Third Quarter 2025 Form 10-Q 57
+Added: Segment Results Run-off Property-Liability
Run-off Property-Liability Segment
Underwriting results
−Removed: ($ in millions) Three months ended June 30, Six months ended June 30,
+Added: ($ in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 2025 2024
Claims and claims expense
+Added: Asbestos claims
+Added: $ (62) $ (19) $ (62) $ (19)
+Added: Environmental claims
+Added: (27) (10) (27) (10)
+Added: Other run-off lines (57) (30) (62) (36)
+Added: Total claims and claims expense
+Added: $ (146) $ (59) $ (151) $ (65)
Operating costs and expenses — (1) (2) (3)
1 unchanged sentence
$ (146) $ (60) $ (153) $ (68)
+Added: Annual reserve review In the third quarter of 2025 and 2024, we performed our annual reserve review using established industry and actuarial best practices.
+Added: The annual review resulted in reserve reestimates that increased reserves by $146 million and $58 million in 2025 and 2024, respectively.
+Added: The reserve reestimates are included as part of claims and claims expense.
+Added: The reserve reestimates in 2025 primarily related to new reported information for asbestos claims, new reported claims for environmental and other mass tort claims and increased projections for claims expenses.
+Added: The reserve reestimates in 2024 primarily related to new reported information for asbestos related
+Added: claims and adverse developments within the other run-off lines.
+Added: We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment.
+Added: However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable.
Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance
−Removed: ($ in millions) June 30, 2025 December 31, 2024
+Added: ($ in millions) September 30, 2025 December 31, 2024
Asbestos claims
13 unchanged sentences
Net reserves $ 1,476 $ 1,414
+Added: 58 www.allstate.com
+Added: Run-off Property-Liability Segment Results
Reserves by type of exposure before and after the effects of reinsurance
−Removed: ($ in millions) June 30, 2025 December 31, 2024
+Added: ($ in millions) September 30, 2025 December 31, 2024
Direct excess commercial insurance
18 unchanged sentences
Net reserves $ 1,476 $ 1,414
−Removed: Second Quarter 2025 Form 10-Q 59
−Removed: Segment Results Run-off Property-Liability
Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
Case IBNR Case IBNR
8 unchanged sentences
Ceded 73 27 87 13
−Removed: (1) Approximately 66% and 65% of gross case reserves as of June 30, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.
−Removed: (2) Approximately 73% and 72% of ceded case reserves as of June 30, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.
+Added: (1) Approximately 65% of gross case reserves as of September 30, 2025 and December 31, 2024 are subject to settlement agreements that define and limit our obligations.
+Added: (2) Approximately 72% of ceded case reserves as of September 30, 2025 and December 31, 2024 are subject to settlement agreements that define and limit our obligations.
Gross payments from case reserves by type of exposure
−Removed: ($ in millions) Three months ended June 30, Six months ended June 30,
+Added: ($ in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 2025 2024
6 unchanged sentences
Ceded (1) (1) (2) (2)
−Removed: (1) In the second quarter and first six months of 2025, 93% and 91% of payments related to settlement agreements, respectively, compared to 87% and 86% in the second quarter and first six months of 2024, respectively.
−Removed: (2) In the second quarter and first six months of 2025, 94% and 93% of payments related to settlement agreements, respectively, compared to 96% and 93% in the second quarter and first six months of 2024, respectively.
−Removed: Total net reserves as of June 30, 2025, included $666 million or 49% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.
−Removed: Total gross payments were $45 million and $78 million for the second quarter and first six months of 2025, respectively, compared to $39 million and $62 million for the second quarter and first six months of 2024, respectively.
+Added: (1) In the third quarter and first nine months of 2025, 81% and 90% of payments related to settlement agreements, respectively, compared to 94% and 89% in the third quarter and first nine months of 2024, respectively.
+Added: (2) In the third quarter and first nine months of 2025, 84% and 91% of payments related to settlement agreements, respectively, compared to 98% and 95% in the third quarter and first nine months of 2024, respectively.
+Added: Third Quarter 2025 Form 10-Q 59
+Added: Segment Results Run-off Property-Liability
+Added: Total net reserves as of September 30, 2025, included $773 million or 52% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.
+Added: Total gross payments were $37 million and $115 million for the third quarter and first nine months of 2025, respectively, compared to $26 million and $88 million for the third quarter and first nine months of 2024, respectively.
Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon.
The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds.
−Removed: Reinsurance collections were $10 million and $16 million for the second quarter and first six months of 2025, respectively, compared to $15 million and $26 million for the second quarter and first six months of 2024, respectively.
+Added: Reinsurance collections were $9 million and $25 million for the third quarter and first nine months of 2025, respectively, compared to $5 million and $31 million for the third quarter and first nine months of 2024, respectively.
60 www.allstate.com
2 unchanged sentences
Summarized financial information
−Removed: ($ in millions) Three months ended June 30, Six months ended June 30,
+Added: ($ in millions) Three months ended September 30, Nine months ended September 30,
2025 2024 2025 2024
3 unchanged sentences
Intersegment insurance premiums and service fees (1)
+Added: 33 49 106 123
Net investment income 25 24 74 68
5 unchanged sentences
Income tax expense on operations (16) (15) (51) (51)
+Added: noncontrolling interest (1) (1) (1) (1)
Adjusted net income $ 46 $ 58 $ 161 $ 167
−Removed: Allstate Protection Plans $ 51 $ 41 $ 96 $ 81
−Removed: Allstate Dealer Services 4 6 8 12
−Removed: Allstate Roadside 11 8 22 19
+Added: Protection Plans $ 34 $ 39 $ 130 $ 120
+Added: Roadside 12 10 34 29
+Added: Dealer Services 6 5 14 17
+Added: Identity Protection 2 3 5 6
Arity (8) 1 (22) (5)
−Removed: Allstate Identity Protection 2 2 3 3
Adjusted net income $ 46 $ 58 $ 161 $ 167
Policies in force
−Removed: Allstate Protection Plans 162,315 151,172
−Removed: Allstate Dealer Services 3,697 3,733
−Removed: Allstate Roadside 988 604
−Removed: Allstate Identity Protection 2,669 2,510
−Removed: Policies in force as of June 30 (in thousands) 169,669 158,019
−Removed: (1) Primarily related to Arity and Allstate Roadside and are eliminated in our condensed consolidated financial statements.
−Removed: Premiums written increased 8.4% or $57 million in the second quarter of 2025 and increased 6.7% or $87 million in the first six months of 2025 compared to the same periods of 2024, primarily due to international growth at Allstate Protection Plans.
−Removed: Adjusted net income increased 9.1% or $5 million in the second quarter of 2025 and increased 5.5% or $6 million in the first six months of 2025 compared to the same periods of 2024, primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses at Arity.
−Removed: PIF increased 7.4% or 12 million as of June 30, 2025 compared to June 30, 2024 due to growth at Allstate Protection Plans.
−Removed: Other revenue increased 13.3% or $13 million in the second quarter of 2025 and increased 30.6% or $56 million in the first six months of 2025 compared to the same periods of 2024, primarily due to higher lead generation revenue at Arity.
−Removed: Intersegment premiums and service fees decreased 7.7% or $3 million in the second quarter of
−Removed: 2025 and decreased 1.4% or $1 million in the first six months of 2025 compared to the same periods of 2024, primarily driven by Allstate Roadside.
−Removed: Claims and claims expense increased 8.3% or $13 million in the second quarter of 2025 and increased 5.1% or $16 million in the first six months of 2025 compared to the same periods of 2024, primarily driven by growth at Allstate Protection Plans and increased severity at Dealer Services.
−Removed: Amortization of DAC increased 10.8% or $32 million in the second quarter of 2025 and increased 10.4% or $61 million in the first six months of 2025 compared to the same periods of 2024, driven by growth at Allstate Protection Plans.
−Removed: Operating costs and expenses increased 17.9% or $44 million in the second quarter of 2025 and increased 24.8% or $119 million in the first six months of 2025 compared to the same periods of 2024, primarily due to expenses related to growth at Allstate Protection Plans and Arity.
−Removed: Second Quarter 2025 Form 10-Q 61
−Removed: Segment Results Allstate Health and Benefits
−Removed: Allstate Health and Benefits Segment
−Removed: On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits business, to StanCorp Financial Group, Inc.
−Removed: We recorded a gain on the sale of $890 million or $643 million, after-tax in the second quarter of 2025.
−Removed: Starting in the second quarter of 2025, this segment excludes the employer voluntary benefits results and financial results will not be comparable between periods.
−Removed: 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.
−Removed: The assets and liabilities of the business are classified as held for sale at June 30, 2025.
−Removed: The transaction closed on July 1, 2025, and we expect to record a gain on the sale of approximately $500 million in the third quarter of 2025.
−Removed: Starting in the third quarter of 2025, the retained individual health business that was included in the Allstate Health and Benefits segment will no longer be a reportable segment.
−Removed: Goodwill A goodwill impairment test performed for the retained individual health business in the first quarter of 2025 resulted in an excess of fair value over carrying amount of less than 10%.
−Removed: Consequently, a goodwill impairment test was also performed in the second quarter of 2025 for this business which did not result in an impairment of goodwill.
−Removed: As of June 30, 2025, the individual health reporting unit had goodwill of $44 million.
−Removed: Estimating fair value is a subjective process that involves the use of significant estimates by management.
−Removed: Market declines and other events impacting the fair value, including discount rates, operating results, investment returns and strategies and growth rate assumptions or increases in the level of equity required to support the business could result in goodwill impairment.
−Removed: Summarized financial information
−Removed: Three months ended June 30, Six months ended June 30,
−Removed: ($ in millions) 2025 2024 2025 2024
−Removed: Accident and health insurance premiums and contract charges $ 235 $ 474 $ 722 $ 952
−Removed: Other revenue 109 121 240 255
−Removed: Net investment income 5 25 30 48
−Removed: Costs and expenses
−Removed: Accident, health and other policy benefits (188) (291) (521) (587)
−Removed: Amortization of DAC (6) (32) (43) (74)
−Removed: Operating costs and expenses (149) (224) (383) (449)
−Removed: Restructuring and related charges (1) — (1) (1)
−Removed: Income tax expense on operations (1) (15) (10) (30)
−Removed: Adjusted net income $ 4 $ 58 $ 34 $ 114
−Removed: Employer voluntary benefits (1)
+Added: Protection Plans
163,451 156,818
−Removed: Group health (2)
−Removed: Individual health (3)
−Removed: Adjusted net income $ 4 $ 58 $ 34 $ 114
−Removed: Policies in force
−Removed: Employer voluntary benefits (1)
−Removed: Group health (2)
−Removed: Individual health (3)
−Removed: Policies in force as of June 30 (in thousands) 618 4,181
−Removed: (1) Employer voluntary benefits included supplemental life and health products offered through workplace enrollment.
−Removed: (2) Group health includes health products and administrative services sold to employers.
−Removed: (3) Individual health includes short-term medical and other health products sold directly to individuals.
−Removed: Premiums and contract charges decreased 50.4% or $239 million in the second quarter of 2025 and decreased 24.2% or $230 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Excluding the results of the EVB business sold on April 1, premiums and contract charges increased 3.1% or $7 million in the second quarter of 2025 and increased 4.6% or $21 million in the first six months of 2025 compared to the same periods of 2024 due to growth in individual health and group health.
−Removed: Starting in the second quarter of 2025, we significantly reduced the sale of new Medicare supplement products in individual health.
+Added: Roadside 1,119 670
+Added: Dealer Services 3,681 3,703
+Added: Identity Protection 2,694 2,538
+Added: Policies in force as of September 30 (in thousands) 170,945 163,729
+Added: (1) Primarily related to Arity and Roadside and are eliminated in our condensed consolidated financial statements.
+Added: Premiums written increased 10.5% or $71 million in the third quarter of 2025 and increased 8.0% or $158 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to international growth at Protection Plans.
+Added: Adjusted net income decreased 20.7% or $12 million in the third quarter of 2025 and decreased 3.6% or $6 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher expenses at Arity and increased claims at Protection Plans, partially offset by premium growth at Protection Plans.
+Added: PIF increased 4.4% or 7 million as of September 30, 2025 compared to September 30, 2024 due to growth at Protection Plans.
+Added: Other revenue increased 12.7% or $14 million in the third quarter of 2025 and increased 23.9% or $70 million in the first nine months of 2025 compared to
+Added: the same periods of 2024, primarily due to higher lead generation revenue at Arity.
+Added: Intersegment premiums and service fees decreased 32.7% or $16 million in the third quarter of 2025 and decreased 13.8% or $17 million in the first nine months of 2025 compared to the same periods of 2024, primarily driven by Arity and Roadside.
+Added: Claims and claims expense increased 16.3% or $27 million in the third quarter of 2025 and increased 8.9% or $43 million in the first nine months of 2025 compared to the same periods of 2024, primarily driven by growth at Protection Plans.
+Added: Amortization of DAC increased 10.9% or $33 million in the third quarter of 2025 and increased 10.6% or $94 million in the first nine months of 2025 compared to the same periods of 2024, driven by growth at Protection Plans.
+Added: Third Quarter 2025 Form 10-Q 61
+Added: Segment Results Protection Services
+Added: Operating costs and expenses increased 10.7% or $30 million in the third quarter of 2025 and increased 19.6% or $149 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to expenses related to growth at Protection Plans and Arity.
62 www.allstate.com
−Removed: Allstate Health and Benefits Segment Results
−Removed: Premiums and contract charges
−Removed: Three months ended June 30, Six months ended June 30,
−Removed: ($ in millions) 2025 2024 2025 2024
−Removed: Employer voluntary benefits $ — $ 246 $ 243 $ 494
−Removed: Group health 123 120 247 238
−Removed: Individual health 112 108 232 220
−Removed: Premiums and contract charges $ 235 $ 474 $ 722 $ 952
−Removed: Adjusted net income decreased 93.1% or $54 million in the second quarter of 2025 and decreased 70.2% or $80 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Excluding the results of the EVB business sold on April 1, adjusted net income decreased 86.7% or $26 million in the second quarter of 2025 and decreased 82.6% or $57 million in the first six months of 2025 compared to the same periods of 2024, due to increased benefit utilization in group health and individual health.
−Removed: Other revenue decreased 9.9% or $12 million in the second quarter of 2025 and decreased 5.9% or $15 million in the first six months of 2025 compared to the same periods of 2024, primarily due to lower third-party commission revenues for the individual health business.
−Removed: Accident, health and other policy benefits decreased 35.4% or $103 million in the second quarter
−Removed: of 2025 and decreased 11.2% or $66 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Excluding the results of the EVB business sold on April 1, accident, health and other policy benefits increased 20.5% or $32 million in the second quarter of 2025 and increased 23.5% or $74 million in the first six months of 2025 compared to the same periods of 2024, due to higher benefit utilization in group health and individual health.
−Removed: Amortization of DAC decreased 81.3% or $26 million in the second quarter of 2025 and decreased 41.9% or $31 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Excluding the results of the EVB business sold on April 1, amortization of DAC is flat in the second quarter of 2025 and decreased 7.14% or $1 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Operating costs and expenses
−Removed: ($ in millions) Employer voluntary benefits
−Removed: health Individual
−Removed: Three months ended June 30, 2025
−Removed: Non-deferrable commissions
−Removed: $ — $ 27 $ 22 $ 49
−Removed: Operating costs and expenses
−Removed: Total $ — $ 73 $ 76 $ 149
−Removed: Three months ended June 30, 2024
−Removed: Non-deferrable commissions
−Removed: $ 21 $ 27 $ 38 $ 86
−Removed: Operating costs and expenses
−Removed: Total $ 72 $ 69 $ 83 $ 224
−Removed: Six months ended June 30, 2025
−Removed: Non-deferrable commissions
−Removed: $ 22 $ 54 $ 53 $ 129
−Removed: Operating costs and expenses
−Removed: 51 88 115 254
−Removed: Total $ 73 $ 142 $ 168 $ 383
−Removed: Six months ended June 30, 2024
−Removed: Non-deferrable commissions
−Removed: $ 44 $ 53 $ 80 $ 177
−Removed: Operating costs and expenses
−Removed: 102 84 86 272
−Removed: Total $ 146 $ 137 $ 166 $ 449
−Removed: Operating costs and expenses decreased 33.5% or $75 million in the second quarter of 2025 and decreased 14.7% or $66 million in the first six months of 2025 compared to the same periods of 2024.
−Removed: Excluding the results of the EVB business sold on April 1, operating costs and expenses decreased 2.0% or $3 million in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a decrease in non-deferrable commissions in individual health, partially offset by higher administrative costs.
−Removed: Excluding the results of the EVB business sold on April 1, operating costs and expenses increased 2.3% or $7 million in the first six months of 2025 compared to the first six months of 2024 primarily due to higher administrative costs, partially offset by lower non-deferrable commissions in individual health.
−Removed: Second Quarter 2025 Form 10-Q 63
−Removed: Portfolio composition and strategy by reportable segment (1)
−Removed: June 30, 2025
+Added: Portfolio composition and strategy (1)
+Added: September 30, 2025
($ in millions) Property-Liability Protection Services
−Removed: Allstate Health and Benefits (5)
−Removed: and Other Total
+Added: and all other
Fixed income securities (2)
14 unchanged sentences
(2) Fixed income securities are carried at fair value.
−Removed: Amortized cost, net for these securities was $49.20 billion, $1.95 billion, $176 million, $3.06 billion and $54.38 billion for Property-Liability, Protection Services, Allstate Health and Benefits, Corporate and Other, and in total, respectively.
+Added: Amortized cost, net for these securities was $51.19 billion, $1.81 billion, $3.73 billion and $56.73 billion for Property-Liability, Protection Services, Corporate and all other, and in total, respectively.
(3) Equity securities are carried at fair value.
−Removed: The fair value of equity securities held as of June 30, 2025, was $226 million in excess of cost.
−Removed: These net gains were primarily concentrated in the technology, banking and communications sectors.
−Removed: Equity securities include $896 million of funds with underlying investments in fixed income securities as of June 30, 2025.
+Added: The fair value of equity securities held as of September 30, 2025, was $395 million in excess of cost.
+Added: These net gains were primarily concentrated in the technology, equity index funds and banking sectors.
+Added: Equity securities include $1.34 billion of funds with underlying investments in fixed income and short-term securities as of September 30, 2025.
(4) Short-term investments are carried at fair value.
−Removed: (5) As of June 30, 2025, $320 million of investments are classified as held for sale.
−Removed: Investments totaled $77.44 billion as of June 30, 2025, increasing from $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows.
+Added: Investments totaled $82.33 billion as of September 30, 2025, increasing from $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows.
Portfolio composition by investment strategy We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects.
4 unchanged sentences
These investments include investee level expenses, reflecting asset level operating expenses on directly held real estate and other consolidated investments.
−Removed: Macroeconomic impacts We regularly assess the macroeconomic environment through our integrated Enterprise Risk and Return Management framework.
−Removed: In the second quarter of 2025, we lowered the allocation of enterprise economic capital to the investment portfolio and implemented a balanced risk reduction strategy.
−Removed: Actions included reducing public equity securities and high yield bonds and shortening the fixed income portfolio duration.
−Removed: 64 www.allstate.com
+Added: Macroeconomic impacts We continually monitor the macroeconomic environment through our integrated Enterprise Risk and Return Management framework.
+Added: In the third quarter of 2025, we increased the allocation of enterprise economic capital to the investment portfolio in response to evolving market conditions.
+Added: Actions included lengthening the fixed income portfolio duration and increasing exposure to public equity securities and high yield bonds.
+Added: Third Quarter 2025 Form 10-Q 63
Portfolio composition by investment strategy
−Removed: June 30, 2025
+Added: September 30, 2025
($ in millions) Market-
10 unchanged sentences
Fixed income securities $ 454 $ — $ 454
−Removed: Short-term investments (2) — (2)
Other investments
3 unchanged sentences
Fair value as of
−Removed: ($ in millions) June 30, 2025 December 31, 2024
+Added: ($ in millions) September 30, 2025 December 31, 2024
government and agencies $ 13,525 $ 11,108
11 unchanged sentences
As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the portfolio includes certain securities that have not yet been designated by the SVO as of each balance sheet date and the categorization of these securities is based on the expected ratings indicated by internal analysis .
−Removed: As of June 30, 2025, 92.3% of the consolidated fixed income securities portfolio was rated investment grade.
+Added: As of September 30, 2025, 91.5% of the consolidated fixed income securities portfolio was
+Added: rated investment grade.
Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds.
4 unchanged sentences
For further detail on our fixed income portfolio monitoring process, see Note 5 of the condensed consolidated financial statements.
−Removed: Second Quarter 2025 Form 10-Q 65
The following table presents total fixed income securities by the applicable NAIC designation and comparable S&P rating.
+Added: 64 www.allstate.com
Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating
−Removed: June 30, 2025
+Added: September 30, 2025
NAIC 1 NAIC 2 NAIC 3
32 unchanged sentences
government agencies.
−Removed: CMBS investments are primarily traditional conduit transactions collateralized by commercial mortgage
−Removed: loans, broadly diversified across property types and geographical area.
+Added: CMBS investments are primarily traditional conduit transactions collateralized by commercial mortgage loans, broadly diversified across property types and geographical area.
Equity securities of $5.34 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and REITs.
−Removed: Exchange traded and mutual funds that have fixed income securities as their underlying investments total $896 million as of June 30, 2025.
+Added: Exchange traded and mutual funds that have fixed income and short-term securities as their underlying investments total $1.34 billion as of September 30, 2025.
+Added: Sector exposure within exchange traded and mutual funds align with the respective tracked indices.
Mortgage loans of $831 million comprise loans secured by first mortgages on developed commercial real estate of $680 million and residential mortgage loans of $151 million.
1 unchanged sentence
For further detail on our mortgage loan portfolio, see Note 5 of the condensed consolidated financial statements.
−Removed: Limited partnership interests include $7.58 billion of interests in private equity funds, $1.41 billion of interests in real estate funds and $211 million of interests in other funds as of June 30, 2025.
−Removed: We have commitments to invest additional amounts in limited partnership interests totaling $3.42 billion as of June 30, 2025.
−Removed: Other investments include $335 million of bank loans, net and $628 million of direct investments in real estate as of June 30, 2025.
−Removed: 66 www.allstate.com
+Added: Limited partnership interests include $7.52 billion of interests in private equity funds, $1.47 billion of interests in real estate funds and $232 million of interests in other funds as of September 30, 2025.
+Added: We have commitments to invest additional amounts in limited partnership interests totaling $3.26 billion as of September 30, 2025.
+Added: Other investments include $383 million of bank loans, net and $621 million of direct investments in real estate as of September 30, 2025.
+Added: Third Quarter 2025 Form 10-Q 65
Unrealized net capital gains (losses)
−Removed: June 30, December 31,
+Added: September 30, December 31,
($ in millions) 2025 2024
11 unchanged sentences
Gross unrealized Fair
−Removed: June 30, 2025
+Added: September 30, 2025
$ 4,335 $ 98 $ (19) $ 4,414
34 unchanged sentences
Total fixed income securities $ 53,616 $ 361 $ (1,230) $ 52,747
−Removed: Second Quarter 2025 Form 10-Q 67
+Added: 66 www.allstate.com
In general, gross unrealized losses are related to an increase in market yields, which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase.
1 unchanged sentence
Equity securities by sector
−Removed: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
($ in millions) Cost Over (under) cost Fair
12 unchanged sentences
203 15 218 332 6 338
−Removed: Equities 352 25 377 1,077 22 1,099
−Removed: Fixed income 896 — 896 764 (14) 750
−Removed: Other 77 3 80 75 (2) 73
−Removed: Total funds 1,325 28 1,353 1,916 6 1,922
128 29 157 159 17 176
4 unchanged sentences
8 (3) 5 6 (2) 4
+Added: Directly held equity securities
+Added: 2,757 316 3,073 2,413 128 2,541
+Added: Equities 856 66 922 1,077 22 1,099
+Added: Fixed income and short-term
+Added: 1,328 13 1,341 838 (16) 822
+Added: Other 2 — 2 1 — 1
+Added: 2,186 79 2,265 1,916 6 1,922
Total equity securities $ 4,943 $ 395 $ 5,338 $ 4,329 $ 134 $ 4,463
Net investment income
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
12 unchanged sentences
Net investment income $ 949 $ 783 $ 2,557 $ 2,259
−Removed: Property-Liability $ 687 $ 643 $ 1,470 $ 1,345
−Removed: Protection Services 25 23 49 44
−Removed: Allstate Health and Benefits 5 25 30 48
−Removed: Corporate and Other 37 21 59 39
−Removed: Net investment income $ 754 $ 712 $ 1,608 $ 1,476
Market-based $ 780 $ 708 $ 2,232 $ 2,001
1 unchanged sentence
Investment income, before expense $ 1,020 $ 863 $ 2,768 $ 2,488
−Removed: Net investment income increased 5.9% or $42 million in the second quarter of 2025 and increased 8.9% or $132 million in the first six months of 2025 compared to the same periods of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results.
−Removed: Market-based results continue to benefit from higher investment balances.
−Removed: 68 www.allstate.com
+Added: Net investment income increased 21.2% or $166 million in the third quarter of 2025 and increased 13.2% or $298 million in the first nine months of 2025 compared to the same periods of 2024.
+Added: Net investment income increase included higher market-based income resulting from higher average investment balances and elevated fixed income yields.
+Added: Performance-based investment results reflected broad-based valuation gains across private equity and real estate holdings.
+Added: Third Quarter 2025 Form 10-Q 67
Performance-based investment income
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
6 unchanged sentences
(1) Investee level expenses include asset level operating expenses on directly held real estate and other consolidated investments reported in investment expense.
−Removed: Performance-based investment income decreased 26.2% or $28 million in the second quarter of 2025 and decreased 10.7% or $33 million in the first six months of 2025 compared to the same periods of 2024, primarily due to lower private equity valuation increases, partially offset by higher real estate investment results.
−Removed: Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance
−Removed: of the underlying investments and the timing of asset sales.
+Added: Performance-based investment income increased 58.7% or $84 million in the third quarter of 2025 compared to the same period of 2024, related to higher private equity valuation increases and real estate investment results.
+Added: Performance-based investment income increased 11.3% or $51 million in the first nine months of 2025 compared to the same period of 2024, primarily due to higher real estate investment results, partially offset by lower private equity valuation increases.
+Added: Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market
+Added: performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales.
The Company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements.
−Removed: As a result, performance-based income in the second quarter of 2025 is primarily comprised of operating and market performance and results of our investments for the three months ended March 31, 2025, and may not reflect economic conditions since the U.S.’s imposition of tariffs on goods imported to the U.S.
+Added: As a result, performance-based income in the third quarter of 2025 is primarily comprised of operating and market performance and results of our investments for the three months ended June 30, 2025, and may not reflect all economic conditions since the U.S.’s imposition of tariffs on goods imported to the U.S.
Components of net gains (losses) on investments and derivatives and the related tax effect
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
4 unchanged sentences
Equity securities 175 89 221 175
−Removed: Equity fund investments in fixed income securities 1 (5) 6 (9)
+Added: Equity fund investments in fixed income securities and short-term investments
Limited partnerships (2)
2 unchanged sentences
Net gains (losses) on investments and derivatives, pre-tax 252 243 (241) (24)
−Removed: Income tax benefit 32 22 105 58
−Removed: Net gains (losses) on investments and derivatives, after-tax $ (112) $ (81) $ (388) $ (209)
−Removed: Property-Liability (1)
−Removed: $ (148) $ (81) $ (408) $ (208)
−Removed: Protection Services 1 (1) (7) (4)
−Removed: Allstate Health and Benefits (1) 1 (2) 2
−Removed: Corporate and Other 36 — 29 1
+Added: Income tax (expense) benefit (56) (54) 49 4
Net gains (losses) on investments and derivatives, after-tax $ 196 $ 189 $ (192) $ (20)
7 unchanged sentences
(2) Relates to limited partnerships where the underlying assets are predominately public equity securities.
−Removed: Net losses on investments and derivatives in the second quarter of 2025 primarily related to losses on sales of fixed income securities and valuation change and settlements of derivatives, partially offset by valuation gains on equity investments.
−Removed: Net losses in the first six months of 2025 primarily related to losses on sales of fixed income securities, valuation change and settlements of derivatives and losses recorded for
−Removed: variable interests in Reciprocal Exchanges, partially offset by valuation gains on equity investments.
−Removed: Net losses on sales in the second quarter and first six months of 2025 related to sales of fixed income securities in connection with ongoing portfolio management and the execution of our risk reduction strategy.
−Removed: In the second quarter, losses were largely
−Removed: Second Quarter 2025 Form 10-Q 69
−Removed: driven by the repositioning of the portfolio into shorter-duration fixed income securities.
−Removed: Net losses on valuation change and settlements of derivatives of $65 million and $84 million in the second quarter and first six months of 2025, respectively,
−Removed: primarily related to losses on foreign currency contracts used to manage foreign currency risk, net losses on interest rate futures used to manage duration and losses on credit default contracts due to tightening credit spreads.
+Added: Net gains on investments and derivatives in the third quarter of 2025 primarily related to valuation increases on equity investments and gains on sales of fixed income securities.
+Added: Net losses in the first nine months of 2025 primarily related to losses on sales of fixed income securities, credit losses primarily related to variable interests in Reciprocal Exchanges and certain real estate-related investments and losses on valuation change and settlements of derivatives, partially offset by valuation increases on equity investments.
+Added: Net gains on sales in the third quarter of 2025 related to sales of fixed income securities in connection with ongoing portfolio management and repositioning of the portfolio into intermediate-duration fixed income securities.
+Added: Net losses on sales in the first nine months of 2025 related to sales of fixed income securities in connection with risk reduction and repositioning in the second and third quarters and ongoing portfolio management.
+Added: Net gains on valuation change and settlements of derivatives of $6 million in the third quarter of 2025 primarily related to gains on foreign currency contracts
+Added: 68 www.allstate.com
+Added: used to manage foreign currency and interest rate futures used to manage duration.
+Added: Net losses of $78 million in the first nine months of 2025 primarily related to losses on foreign currency contracts used to
+Added: manage foreign currency, credit default contracts due to tightening credit spreads, equity futures used to manage equity exposure and interest rate futures used to manage duration.
Net gains (losses) on performance-based investments and derivatives
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
($ in millions) 2025 2024 2025 2024
4 unchanged sentences
Total performance-based $ 30 $ 12 $ 26 $ 29
−Removed: Net gains on performance-based investments and derivatives in the second quarter of 2025 primarily related to valuation gains on equity investments, partially offset by decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk.
−Removed: Net losses on performance-based investments and derivatives in the first six months of 2025 primarily related to decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk and credit losses, partially offset by valuation gains on equity investments.
−Removed: 70 www.allstate.com
+Added: Net gains on performance-based investments and derivatives in the third quarter of 2025 primarily related to valuation gains on equity investments, partially offset by losses on sales.
+Added: Net gains on performance-based investments and derivatives in the first nine months of 2025 primarily related to valuation gains on equity investments, partially offset by decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk and losses on sales.
+Added: Third Quarter 2025 Form 10-Q 69
Capital Resources and Liquidity
2 unchanged sentences
Capital resources
−Removed: ($ in millions) June 30, 2025 December 31, 2024
+Added: ($ in millions) September 30, 2025 December 31, 2024
Preferred stock, common stock, treasury stock, retained income and other shareholders’ equity items $ 27,207 $ 22,331
−Removed: Accumulated other comprehensive loss (57) (889)
+Added: Accumulated other comprehensive income (loss) 298 (889)
Total Allstate shareholders’ equity 27,505 21,442
2 unchanged sentences
Ratio of debt to capital resources 22.7 27.4
−Removed: (1) Includes debt issuance costs of $54 million and $56 million as of June 30, 2025 and December 31, 2024, respectively.
−Removed: Allstate shareholders’ equity increased in the first six months of 2025, primarily due to net income and unrealized net capital gains on investments in 2025 compared to losses at December 31, 2024, partially offset by dividends to shareholders.
−Removed: In the six months ended June 30, 2025, we paid dividends of $509 million and $59 million related to our common and preferred shares, respectively.
+Added: (1) Net of debt issuance costs of $52 million and $56 million as of September 30, 2025 and December 31, 2024, respectively.
+Added: Allstate shareholders’ equity increased in the first nine months of 2025, primarily due to net income and an increase in unrealized net capital gains on investments in 2025, partially offset by common share repurchases and dividends to shareholders.
+Added: In the nine months ended September 30, 2025, we paid dividends of $773 million and $88 million related to our common and preferred shares, respectively.
Debt maturities We have $600 million of debt that is scheduled to mature in December 2025.
5 unchanged sentences
Common share repurchases On February 26, 2025, the Board of Directors authorized a new $1.50 billion common share repurchase program that must be completed by September 30, 2026.
−Removed: As of June 30, 2025, there was $1.06 billion remaining in the $1.50 billion common share repurchase program.
−Removed: During the first six months of 2025, we repurchased 2.2 million common shares, or 0.8% of total common shares outstanding at December 31, 2024, for $445 million.
−Removed: Common shareholder dividends On January 2, 2025 and April 1, 2025, we paid a common shareholder dividend of $0.92 and $1.00, respectively.
−Removed: On May 28, 2025, we declared a common shareholder dividend of $1.00 payable on July 1, 2025.
+Added: As of September 30, 2025, there was $695 million remaining in the $1.50 billion common share repurchase program.
+Added: During the first nine months of 2025, we repurchased 4.0 million common shares, or 1.5% of total common shares outstanding at December 31, 2024, for $805 million.
+Added: Common shareholder dividends On January 2, 2025, April 1, 2025 and July 1, 2025, we paid a common shareholder dividend of $0.92, $1.00 and $1.00, respectively.
+Added: On July 15, 2025, we declared a common shareholder dividend of $1.00 payable on October 1, 2025.
Financial ratings and strength Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage.
−Removed: The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies
−Removed: and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies.
+Added: The preferred stock and subordinated debentures are viewed as having a
+Added: common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies.
These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock.
3 unchanged sentences
The outlook for the ratings is stable.
−Removed: There have been no changes to any of our ratings from A.M.
−Removed: Best since December 31, 2024.
+Added: In August 2025, A.M.
+Added: Best affirmed the Corporation’s senior debt and short-term issuer ratings of a- and AMB-1, respectively, and AIC’s insurance financial strength rating of A+.
+Added: The outlook for the ratings is stable.
Liquidity sources and uses We actively manage our financial position and liquidity levels in light of changing market, economic and business conditions.
1 unchanged sentence
We believe we have sufficient liquidity to meet these needs.
+Added: As of September 30, 2025, we held $27.85 billion of cash, U.S.
+Added: government and agencies fixed income securities, public equity securities and short-term investments, which we would expect to be able to liquidate within one week.
Additionally, we have existing intercompany agreements in place that facilitate liquidity management across the Company to enhance flexibility.
The Corporation is party to an Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) with certain subsidiaries, which includes, but is not limited to AIC.
−Removed: The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general corporate purposes.
+Added: The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general
+Added: 70 www.allstate.com
+Added: Capital Resources and Liquidity
+Added: corporate purposes.
The Liquidity Agreement does not establish a commitment to advance funds on the part of any party.
1 unchanged sentence
The maximum amount of potential funding under each of these agreements is $1.00 billion.
−Removed: In addition to the Liquidity Agreement, the Corporation also has an intercompany loan agreement
−Removed: Second Quarter 2025 Form 10-Q 71
−Removed: Capital Resources and Liquidity
−Removed: with certain of its subsidiaries, which includes, but is not limited to, AIC.
+Added: In addition to the Liquidity Agreement, the Corporation also has an intercompany loan agreement with certain of its subsidiaries, which includes, but is not limited to, AIC.
The amount of intercompany loans available to the Corporation’s subsidiaries is at the discretion of the Corporation.
1 unchanged sentence
The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings.
−Removed: Parent company capital capacity At the parent holding company level, we have deployable assets totaling $3.98 billion as of June 30, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.
−Removed: The proceeds from the EVB disposition increased deployable assets at the parent holding company level.
−Removed: In the third quarter of 2025, the proceeds from the group health disposition that closed on July 1, 2025, will increase deployable assets at the parent holding company level.
+Added: Parent company capital capacity At the parent holding company level, we have deployable assets totaling $5.54 billion as of September 30, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.
+Added: The proceeds from the EVB and group health dispositions increased deployable assets at the parent holding company level.
The earnings capacity of the operating subsidiaries is the primary source of capital generation for the Corporation.
−Removed: As of June 30, 2025, we held $28.06 billion of cash, U.S.
−Removed: government and agencies fixed income securities, public equity securities and short-term investments, which we would expect to be able to liquidate within one week.
Based on the greater of 2024 statutory net income or 10% of actual December 31, 2024 statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2026, is estimated to be $3.95 billion, less dividends paid during the preceding twelve months measured at that point in time.
−Removed: In the first six months of 2025, no dividends have been paid.
+Added: In the first nine months of 2025, $750 million of dividends have been paid.
Dividends may not be paid or declared on our common stock and shares of common stock may not be repurchased unless the full dividends for the latest completed dividend period on our preferred stock have been declared and paid or provided for.
The terms of our outstanding subordinated debentures also prohibit us from declaring or paying any dividends or distributions on our common or preferred stock or redeeming, purchasing, acquiring, or making liquidation payments on our common stock or preferred stock if we have elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions.
−Removed: In the first six months of 2025, we did not defer interest payments on the subordinated debentures.
+Added: In the first nine months of 2025, we did not defer interest payments on the subordinated debentures.
Additional resources to support liquidity are as follows:
2 unchanged sentences
The facility is fully subscribed among 11 lenders with the largest commitment being $95 million.
−Removed: The commitments of the lenders are several and no lender is responsible for any other lender’s
−Removed: commitment if such lender fails to make a loan under the facility.
+Added: The commitments of the lenders are several and no lender is responsible for any other lender’s commitment if such lender fails to make a loan under the facility.
This facility contains an increase provision that would allow up to an additional $500 million of borrowing, subject to the lenders’ commitment.
This facility has a financial covenant requiring that we not exceed a 37.5% debt to capitalization ratio as defined in the agreement.
−Removed: This ratio was 19.7% as of June 30, 2025.
+Added: This ratio was 17.9% as of September 30, 2025.
Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of our senior unsecured, unguaranteed long-term debt.
1 unchanged sentence
• To cover short-term cash needs, the Corporation has access to a commercial paper facility with a borrowing capacity limited to any undrawn credit facility balance up to $750 million.
−Removed: • As of June 30, 2025, there were no balances outstanding for the credit facility or the commercial paper facility, and therefore the remaining borrowing capacity was $750 million.
+Added: As of September 30, 2025, there were no balances outstanding for the credit facility or the commercial paper facility, and therefore the remaining borrowing capacity was $750 million.
• The Corporation has access to a universal shelf registration statement with the Securities and Exchange Commission that was filed on April 30, 2024 and expires in 2027.
−Removed: We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 636 million shares of treasury stock as of June 30, 2025), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.
+Added: We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 638 million shares of treasury stock as of September 30, 2025), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.
The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.
−Removed: 72 www.allstate.com
+Added: Third Quarter 2025 Form 10-Q 71
Forward-Looking Statements
34 unchanged sentences
Macro, Regulatory and Risk Environment (27) conditions in the global economy and capital markets, including changes in U.S.
−Removed: trade and tariff policy, newly imposed U.S.
−Removed: tariffs and any additional responsive non-U.S.
−Removed: tariffs or additional U.S.
+Added: trade and tariff policy, new or additional U.S.
+Added: and responsive non-U.S.
tariffs, and our ability to plan for and respond to the impact of those changes;
9 unchanged sentences
and internationally;
−Removed: (37) regulatory reforms and stringent application of existing regulations;
+Added: (37) regulatory reforms and enforcement of existing regulations;
(38) losses from legal and regulatory actions;
3 unchanged sentences
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.