ALLSTATE CORP 10-Q

Item 1. Financial Statements The Allstate Corporation and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) (In millions, except per share data) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Revenues Property and casualty insurance premiums $ 15,253 $ 14,333 $ 44,992 $ 41,797 Accident and health insurance premiums and contract charges 110 487 832 1,439 Other revenue 691 781 2,200 2,129 Net investment income 949 783 2,557 2,259 Net gains (losses) on investments and derivatives 252 243 ( 241 ) ( 24 ) Total revenues 17,255 16,627 50,340 47,600 Costs and expenses Property and casualty insurance claims and claims expense 8,654 10,409 29,718 30,711 Accident, health and other policy benefits 67 317 588 904 Amortization of deferred policy acquisition costs 2,101 2,037 6,264 5,977 Operating costs and expenses 2,265 2,217 6,645 6,121 Pension and other postretirement remeasurement (gains) losses ( 108 ) 26 ( 30 ) 15 Restructuring and related charges 17 28 48 51 Amortization of purchased intangibles 59 71 175 210 Interest expense 101 104 301 299 Total costs and expenses 13,156 15,209 43,709 44,288 Gain on disposition of operations 720 — 1,610 — Income from operations before income tax expense 4,819 1,418 8,241 3,312 Income tax expense 1,075 254 1,802 603 Net income 3,744 1,164 6,439 2,709 Less: Net loss attributable to noncontrolling interest ( 2 ) ( 26 ) ( 11 ) ( 30 ) Net income attributable to Allstate 3,746 1,190 6,450 2,739 Less: Preferred stock dividends 29 29 88 88 Net income applicable to common shareholders $ 3,717 $ 1,161 $ 6,362 $ 2,651 Earnings per common share: Net income applicable to common shareholders per common share - Basic $ 14.13 $ 4.39 $ 24.07 $ 10.04 Weighted average common shares - Basic 263.1 264.6 264.3 264.1 Net income applicable to common shareholders per common share - Diluted $ 13.95 $ 4.33 $ 23.76 $ 9.91 Weighted average common shares - Diluted 266.4 268.0 267.8 267.4 See notes to condensed consolidated financial statements. Third Quarter 2025 Form 10-Q 1 Condensed Consolidated Financial Statements The Allstate Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Net income $ 3,744 $ 1,164 $ 6,439 $ 2,709 Other comprehensive income, after-tax Changes in: Unrealized net capital gains and losses 315 1,299 1,122 965 Unrealized foreign currency translation adjustments 40 14 79 ( 1 ) Unamortized pension and other postretirement prior service credit ( 1 ) — ( 1 ) ( 1 ) Discount rate for reserve for future policy benefits 1 ( 36 ) ( 13 ) ( 12 ) Other comprehensive income, after-tax 355 1,277 1,187 951 Comprehensive income 4,099 2,441 7,626 3,660 Less: Comprehensive loss attributable to noncontrolling interest ( 2 ) ( 19 ) ( 8 ) ( 22 ) Comprehensive income attributable to Allstate $ 4,101 $ 2,460 $ 7,634 $ 3,682 See notes to condensed consolidated financial statements. 2 www.allstate.com Condensed Consolidated Financial Statements The Allstate Corporation and Subsidiaries Condensed Consolidated Statements of Financial Position (unaudited) ($ in millions, except par value data) September 30, 2025 December 31, 2024 Assets Investments Fixed income securities, at fair value (amortized cost, net $ 56,732 and $ 53,616 ) $ 57,186 $ 52,747 Equity securities, at fair value (cost $ 4,943 and $ 4,329 ) 5,338 4,463 Mortgage loans, net 831 784 Limited partnership interests 9,213 9,255 Short-term, at fair value (amortized cost $ 8,743 and $ 4,539 ) 8,743 4,537 Other investments, net 1,017 824 Total investments 82,328 72,610 Cash 931 704 Premium installment receivables, net 11,745 10,614 Deferred policy acquisition costs 6,095 5,773 Reinsurance and indemnification recoverables, net 9,519 8,924 Accrued investment income 617 615 Deferred income taxes — 231 Property and equipment, net 601 669 Goodwill 3,118 3,245 Other assets, net 5,448 5,140 Assets held for sale — 3,092 Total assets 120,402 111,617 Liabilities Reserve for property and casualty insurance claims and claims expense 43,103 41,917 Unearned premiums 29,157 26,909 Claim payments outstanding 1,554 1,567 Deferred income taxes 311 — Other liabilities and accrued expenses 10,699 9,659 Debt 8,089 8,085 Liabilities held for sale — 2,113 Total liabilities 92,913 90,250 Commitments and Contingent Liabilities (Note 12) Equity Preferred stock and additional capital paid-in, $ 1 par value, 25 million shares authorized, 82.0 thousand shares issued and outstanding, $ 2,050 aggregate liquidation preference 2,001 2,001 Common stock, $ .01 par value, 2.0 billion shares authorized and 900 million issued, 262 million and 265 million shares outstanding 9 9 Additional capital paid-in 4,117 4,029 Retained income 58,853 53,288 Treasury stock, at cost ( 638 million and 635 million shares) ( 37,773 ) ( 36,996 ) Accumulated other comprehensive income (loss): Unrealized net capital gains and losses 351 ( 771 ) Unrealized foreign currency translation adjustments ( 66 ) ( 145 ) Unamortized pension and other postretirement prior service credit 10 11 Discount rate for reserve for future policy benefits 3 16 Total accumulated other comprehensive income (loss) 298 ( 889 ) Total Allstate shareholders’ equity 27,505 21,442 Noncontrolling interest ( 16 ) ( 75 ) Total equity 27,489 21,367 Total liabilities and equity $ 120,402 $ 111,617 See notes to condensed consolidated financial statements. Third Quarter 2025 Form 10-Q 3 Condensed Consolidated Financial Statements The Allstate Corporation and Subsidiaries Condensed Consolidated Statements of Shareholders’ Equity (unaudited) ($ in millions, except per share data) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Preferred stock par value $ — $ — $ — $ — Preferred stock additional capital paid-in 2,001 2,001 2,001 2,001 Common stock par value 9 9 9 9 Common stock additional capital paid-in Balance, beginning of period 4,084 3,927 4,029 3,854 Equity incentive plans activity, net 33 60 88 133 Balance, end of period 4,117 3,987 4,117 3,987 Retained income Balance, beginning of period 55,400 50,718 53,288 49,716 Net income 3,746 1,190 6,450 2,739 Dividends on common stock (declared per share of $ 1.00 , $ 0.92 , $ 3.00 , and $ 2.76 ) ( 264 ) ( 244 ) ( 797 ) ( 732 ) Dividends on preferred stock ( 29 ) ( 29 ) ( 88 ) ( 88 ) Balance, end of period 58,853 51,635 58,853 51,635 Treasury stock Balance, beginning of period ( 37,418 ) ( 37,036 ) ( 36,996 ) ( 37,110 ) Shares acquired ( 363 ) — ( 812 ) — Shares reissued under equity incentive plans, net 8 30 35 104 Balance, end of period ( 37,773 ) ( 37,006 ) ( 37,773 ) ( 37,006 ) Accumulated other comprehensive income (loss) Balance, beginning of period ( 57 ) ( 1,026 ) ( 889 ) ( 700 ) Change in unrealized net capital gains and losses 315 1,299 1,122 965 Change in unrealized foreign currency translation adjustments 40 14 79 ( 1 ) Change in unamortized pension and other postretirement prior service credit ( 1 ) — ( 1 ) ( 1 ) Change in discount rate for reserve for future policy benefits 1 ( 36 ) ( 13 ) ( 12 ) Balance, end of period 298 251 298 251 Total Allstate shareholders’ equity 27,505 20,877 27,505 20,877 Noncontrolling interest Balance, beginning of period ( 14 ) ( 20 ) ( 75 ) ( 140 ) Change in unrealized net capital gains and losses — 7 3 8 Noncontrolling loss ( 2 ) ( 26 ) ( 11 ) ( 30 ) Capital transactions for noncontrolling interest — — 67 123 Balance, end of period ( 16 ) ( 39 ) ( 16 ) ( 39 ) Total equity $ 27,489 $ 20,838 $ 27,489 $ 20,838 See notes to condensed consolidated financial statements. 4 www.allstate.com Condensed Consolidated Financial Statements The Allstate Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited) ($ in millions) Nine months ended September 30, 2025 2024 Cash flows from operating activities Net income $ 6,439 $ 2,709 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other non-cash items 374 404 Net (gains) losses on investments and derivatives 241 24 Pension and other postretirement remeasurement (gains) losses ( 30 ) 15 Gain on disposition of operations ( 1,610 ) — Changes in: Claims and claims expense and other insurance reserves 1,129 2,921 Unearned premiums 2,212 2,378 Deferred policy acquisition costs ( 297 ) ( 315 ) Premium installment receivables, net ( 1,113 ) ( 1,094 ) Reinsurance recoverables, net ( 394 ) ( 324 ) Income taxes 286 346 Other operating assets and liabilities ( 116 ) 162 Net cash provided by operating activities 7,121 7,226 Cash flows from investing activities Proceeds from sales Fixed income securities 57,477 26,841 Equity securities 5,646 2,137 Limited partnership interests 941 409 Other investments 2 169 Investment collections Fixed income securities 489 1,260 Mortgage loans 64 74 Other investments 32 35 Investment purchases Fixed income securities ( 60,481 ) ( 33,023 ) Equity securities ( 6,447 ) ( 1,631 ) Limited partnership interests ( 961 ) ( 915 ) Mortgage loans ( 117 ) ( 17 ) Other investments ( 253 ) ( 125 ) Change in short-term and other investments, net ( 4,600 ) ( 1,653 ) Purchases of property and equipment, net ( 139 ) ( 160 ) Proceeds from sale of property and equipment — 18 Proceeds from disposition of operations, net of cash transferred 3,041 — Net cash used in investing activities ( 5,306 ) ( 6,581 ) Cash flows from financing activities Proceeds from issuance of debt — 495 Redemption and repayment of debt — ( 350 ) Contractholder fund deposits 30 98 Contractholder fund withdrawals ( 15 ) ( 26 ) Dividends paid on common stock ( 773 ) ( 719 ) Dividends paid on preferred stock ( 88 ) ( 88 ) Treasury stock purchases ( 799 ) — Shares reissued under equity incentive plans, net 38 149 Other 19 4 Net cash used in financing activities ( 1,588 ) ( 437 ) Net increase in cash 227 208 Cash at beginning of period 704 722 Less: Cash classified as assets held for sale at end of period — 114 Cash at end of period $ 931 $ 816 See notes to condensed consolidated financial statements. Third Quarter 2025 Form 10-Q 5 Notes to Condensed Consolidated Financial Statements The Allstate Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 General Basis of presentation The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company (collectively referred to as the “Company” or “Allstate”) and variable interest entities (“VIEs”) in which the Company is considered a primary beneficiary. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of September 30, 2025 and for the three and nine month periods ended September 30, 2025 and 2024 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2024. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated. Certain amounts have been reclassified to conform to current year presentation. Adopted accounting standard Accounting for joint ventures Effective January 1, 2025, the Company adopted the new Financial Accounting Standards Board (“FASB”) guidance requiring a joint venture to initially measure assets contributed and liabilities assumed at fair value as of the formation date. The adoption had no impact on the Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Financial Position. Pending accounting standards Income tax disclosures In December 2023, the FASB issued guidance enhancing various aspects of income tax disclosures. The guidance requires a tabular reconciliation between statutory and effective income tax expense (benefit) with both amounts and percentages for a list of required categories. For certain required categories where an individual category is at least five percent of the statutory tax amount, the required category must be further broken out by nature and, for foreign tax effects, jurisdiction. Additionally, entities must disclose income taxes paid, net of refunds received, broken out between federal, state and foreign, and amounts paid, net of refunds received, to an individual jurisdiction when it is five percent or more of the total income taxes paid, net of refunds received. All requirements in the guidance are annual in nature, and the guidance is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The guidance affects disclosures only. Disaggregated income statement disclosures In November 2024, the FASB issued guidance requiring disaggregated information about specific expense categories included in certain income statement expense line items. The guidance outlines the specific costs that are required to be disclosed, which include costs such as: employee compensation, depreciation, intangible asset amortization and selling costs. It also requires qualitative descriptions of the amounts remaining in the relevant income statement captions that are not separately disaggregated quantitatively in the notes to the financial statements and the Company's definition of selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard is effective on a prospective basis, with the option for retrospective application. The guidance affects disclosures only. Credit losses In July 2025, the FASB issued guidance providing a practical expedient for estimating credit losses on current accounts receivable and contract assets arising from revenue transactions under ASC 606. The update now allows entities to assume current conditions remain unchanged for the asset's remaining life when estimating expected credit losses, simplifying the estimation process. The new guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company does not expect the impact of this standard to be material to its financial statements and disclosures. Internal-use software In September 2025, the FASB issued guidance which updates the accounting for internal-use software by replacing the stage-based model with a principles-based approach. The new guidance requires capitalization once management commits to funding and it is probable the software will be completed and used as intended (probable-to-complete recognition threshold). The standard also clarifies that costs cannot be capitalized when significant development uncertainty exists, such as unresolved technological innovations or unclear performance requirements. In addition, website 6 www.allstate.com Notes to Condensed Consolidated Financial Statements development costs are now included under the same guidance. The new guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The standard may be adopted prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the impact of this standard on its financial statements and disclosures. Note 2 Earnings per Common Share Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options, unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include share-based awards with an anti-dilutive effect on earnings per common share, primarily options, where exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. Computation of basic and diluted earnings per common share (In millions, except per share data) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Numerator: Net income $ 3,744 $ 1,164 $ 6,439 $ 2,709 Less: Net loss attributable to noncontrolling interest ( 2 ) ( 26 ) ( 11 ) ( 30 ) Net income attributable to Allstate 3,746 1,190 6,450 2,739 Less: Preferred stock dividends 29 29 88 88 Net income applicable to common shareholders $ 3,717 $ 1,161 $ 6,362 $ 2,651 Denominator: Weighted average common shares outstanding 263.1 264.6 264.3 264.1 Effect of dilutive potential common shares: Stock options 2.3 2.6 2.5 2.6 Restricted stock units (non-participating) and performance stock awards 1.0 0.8 1.0 0.7 Weighted average common and dilutive potential common shares outstanding 266.4 268.0 267.8 267.4 Earnings per common share - Basic $ 14.13 $ 4.39 $ 24.07 $ 10.04 Earnings per common share - Diluted $ 13.95 $ 4.33 $ 23.76 $ 9.91 Anti-dilutive share-based awards excluded from diluted earnings per common share 0.5 0.6 0.4 0.5 Note 3 Dispositions Employer voluntary benefits (“EVB”) business disposition On April 1, 2025, the Company closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business for $ 1.9 billion in cash, net of purchase price adjustments. The Company recorded a gain on the sale of $ 888 million or $ 641 million, after-tax for the nine months ended September 30, 2025. The EVB business generated $ 243 million of premiums and contract charges and $ 22 million of adjusted net income for the three months ended March 31, 2025. Third Quarter 2025 Form 10-Q 7 Notes to Condensed Consolidated Financial Statements Major classes of assets and liabilities disposed of in EVB transaction ($ in millions) April 1, 2025 December 31, 2024 Assets Investments Fixed income securities, at fair value (amortized cost, net $ 1,765 and $ 1,809 ) $ 1,676 $ 1,699 Short-term, at fair value (amortized cost $ 64 and $ 85 ) 64 85 Other investments, net 116 122 Total investments 1,856 1,906 Cash 29 — Deferred policy acquisition costs 525 521 Reinsurance recoverables, net 117 111 Other assets (1) 523 554 Total assets $ 3,050 $ 3,092 Liabilities Reserve for future policy benefits $ 1,096 $ 1,085 Contractholder funds 882 890 Other liabilities and accrued expenses 124 138 Total liabilities $ 2,102 $ 2,113 (1) Included $ 249 million of goodwill at April 1, 2025. Shareholders' equity included $ 51 million of accumulated other comprehensive losses related to assets and liabilities disposed of on April 1, 2025. Group health business disposition On July 1, 2025, the Company closed the sale of Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the Company’s group health business for $ 1.23 billion in cash, net of purchase price adjustments. The Company recorded a gain on the sale of $ 722 million or $ 506 million, after-tax in the third quarter of 2025. The group health business generated $ 247 million of premiums and contract charges and $ 21 million of adjusted net income for the six months ended June 30, 2025. Major classes of assets and liabilities disposed of in group health business transaction ($ in millions) July 1, 2025 Assets Investments Fixed income securities, at fair value (amortized cost, net $ 142 ) $ 143 Short-term, at fair value (amortized cost $ 177 ) 177 Total investments 320 Cash 88 Deferred policy acquisition costs 1 Other assets (1) 305 Total assets $ 714 Liabilities Other liabilities and accrued expenses $ 9 Total liabilities $ 9 (1) Included $ 152 million of goodwill at July 1, 2025. In addition, reserves for future policy benefits of $ 200 million were reinsured to Nationwide Life Insurance Company with a corresponding reinsurance recoverable established on July 1, 2025. In connection with these sales, the Company is providing transition services for 24 months from the respective dates of closing. 8 www.allstate.com Notes to Condensed Consolidated Financial Statements Note 4 Reportable Segments Measuring segment profit or loss The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services and Corporate segments. The dispositions of the EVB and group health businesses did not qualify for discontinued operations. Starting in the third quarter of 2025, the Allstate Health and Benefits segment is no longer a reportable segment, with results of this segment recast to reflect only the results of the EVB and group health businesses. The retained individual health business, previously included in the Allstate Health and Benefits segment, is a non-reportable segment with results included in all other for all periods presented. Allstate Protection and Run-off Property-Liability segments comprise Property-Liability. The Company does not allocate investment income, net gains and losses on investments and derivatives, or assets to the Allstate Protection and Run-off Property-Liability segments. Management reviews assets at the Property-Liability, Protection Services and Corporate levels for decision-making purposes. Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses, amortization of deferred policy acquisition costs (“DAC”), operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP. Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding: • Net gains and losses on investments and derivatives • Pension and other postretirement remeasurement gains and losses • Amortization or impairment of purchased intangibles • Gain or loss on disposition • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years • Income tax expense or benefit on reconciling items A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below. Reportable segments financial performance Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Underwriting income (loss) by segment Allstate Protection $ 3,040 $ 555 $ 4,687 $ 1,316 Run-off Property-Liability ( 146 ) ( 60 ) ( 153 ) ( 68 ) Adjusted net income (loss) by segment, after-tax Protection Services 46 58 161 167 Allstate Health and Benefits — 32 43 133 Corporate ( 87 ) ( 110 ) ( 278 ) ( 320 ) Reconciliation of segment performance measures to net income (loss) applicable to common shareholders Allstate Protection and Run-off Property-Liability net investment income 873 708 2,343 2,053 Net gains (losses) on investments and derivatives 252 243 ( 241 ) ( 24 ) Pension and other postretirement remeasurement gains (losses) 108 ( 26 ) 30 ( 15 ) Amortization of purchased intangibles (1) ( 13 ) ( 19 ) ( 37 ) ( 56 ) Gain on disposition 723 1 1,616 6 All other (2) ( 7 ) 5 ( 16 ) 18 Income tax (expense) benefit on Allstate Protection and Run-off Property-Liability and reconciling items (3) ( 1,073 ) ( 251 ) ( 1,803 ) ( 588 ) Total reconciling items 863 661 1,892 1,394 Less: Net loss attributable to noncontrolling interest (4) ( 1 ) ( 25 ) ( 10 ) ( 29 ) Net income applicable to common shareholders $ 3,717 $ 1,161 $ 6,362 $ 2,651 (1) Excludes amortization of purchased intangibles in Allstate Protection, which is already included above in underwriting income. (2) Includes results of the individual health business, which was previously included within the Allstate Health and Benefits segment. Prior period results were recast to reflect the historical results of the individual health business. (3) The tax computation of the reporting segments and income tax benefit (expense) on reconciling items to net income (loss) are computed discretely based on the tax law of the jurisdictions applicable to the reporting entities. (4) Reflects net loss attributable to noncontrolling interest in Allstate Protection. Third Quarter 2025 Form 10-Q 9 Notes to Condensed Consolidated Financial Statements Reportable segments revenue information ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Allstate Protection Insurance premiums Auto $ 9,593 $ 9,270 $ 28,468 $ 27,127 Homeowners 3,880 3,403 11,308 9,812 Other personal lines 800 718 2,320 2,078 Commercial lines 99 151 316 478 Other business lines 161 152 494 438 Total Allstate Protection insurance premiums 14,533 13,694 42,906 39,933 Other revenue 518 531 1,510 1,402 Total Allstate Protection 15,051 14,225 44,416 41,335 Run-off Property-Liability — — — — Protection Services Protection plans 552 480 1,593 1,372 Roadside assistance 42 34 117 115 Protection and insurance products 126 125 376 377 Intersegment premiums and service fees (1) 33 49 106 123 Other revenue 124 110 363 293 Net investment income 25 24 74 68 Net gains (losses) on investments and derivatives 10 10 1 4 Total Protection Services 912 832 2,630 2,352 Allstate Health and Benefits Employer voluntary benefits — 248 243 742 Group health — 120 247 358 Other revenue — 81 163 245 Net investment income — 25 24 69 Net gains (losses) on investments and derivatives — ( 6 ) ( 1 ) ( 3 ) Total Allstate Health and Benefits — 468 676 1,411 Corporate Other revenue 24 17 62 56 Net investment income 49 25 108 64 Net gains (losses) on investments and derivatives 85 17 122 19 Total Corporate 158 59 292 139 Reconciliation of revenue Allstate Protection and Run-off Property-Liability net investment income 873 708 2,343 2,053 Allstate Protection and Run-off Property-Liability net gains (losses) on investments and derivatives 157 222 ( 362 ) ( 43 ) All other 137 162 451 476 Intersegment eliminations (1) ( 33 ) ( 49 ) ( 106 ) ( 123 ) Consolidated revenues $ 17,255 $ 16,627 $ 50,340 $ 47,600 (1) Intersegment insurance premiums and service fees are primarily related to Arity and Roadside and are eliminated in the condensed consolidated financial statements. 10 www.allstate.com Notes to Condensed Consolidated Financial Statements Reportable segments expense information used in measure for segment profit or loss Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Allstate Protection Claims and claims expense excluding catastrophe losses and prior year reserve reestimates (1) $ 8,304 $ 8,501 $ 25,467 $ 25,701 Catastrophe losses 558 1,703 4,750 4,554 Non-catastrophe prior year reserve reestimates ( 542 ) ( 14 ) ( 1,158 ) ( 73 ) Amortization of DAC 1,757 1,696 5,231 4,977 Advertising expense 575 519 1,540 1,204 Amortization of purchased intangibles 46 52 138 154 Restructuring and related charges 15 23 44 45 Other segment expenses (2) 1,298 1,190 3,717 3,457 Total 12,011 13,670 39,729 40,019 Run-off Property-Liability Claims and claims expense prior year reserve reestimates (3) 146 59 151 65 Other segment expenses (2) — 1 2 3 Total 146 60 153 68 Protection Services Claims and claims expense 193 166 524 481 Amortization of DAC 337 304 983 889 Non-deferrable commissions 116 94 327 251 Restructuring and related charges 1 — 2 1 Other segment expenses (2) 194 186 582 509 Income taxes on operations 16 15 51 51 Total 857 765 2,469 2,182 Allstate Health and Benefits Accident, health and other policy benefits — 255 379 723 Amortization of DAC — 30 30 90 Restructuring and related charges — 1 — 2 Other segment expenses (2) — 147 213 430 Income taxes on operations — 9 12 36 Total — 442 634 1,281 Corporate Interest expense 101 104 301 299 Restructuring and related charges — 3 — 2 Other segment expenses (2) 42 39 119 128 Income taxes on operations ( 12 ) ( 23 ) ( 60 ) ( 77 ) Preferred stock dividends 29 29 88 88 Total $ 160 $ 152 $ 448 $ 440 (1) Includes Allstate Protection incurred loss adjustment expenses, net of reinsurance of $ 741 million and $ 732 million during the three months ended September 30, 2025 and 2024, respectively, and $ 2.22 billion and $ 2.14 billion during the nine months ended September 30, 2025 and 2024, respectively. (2) Includes employee-related costs, professional services, technology and other operating costs and expenses. (3) Includes Run-off Property-Liability incurred loss adjustment expenses, net of reinsurance of $ 24 million and $ 4 million during the three months ended September 30, 2025 and 2024, respectively, and $ 28 million and $ 7 million during the nine months ended September 30, 2025 and 2024, respectively. Third Quarter 2025 Form 10-Q 11 Notes to Condensed Consolidated Financial Statements Additional significant financial performance data Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Amortization of DAC Allstate Protection $ 1,757 $ 1,696 $ 5,231 $ 4,977 Protection Services 337 304 983 889 Allstate Health and Benefits — 30 30 90 All other 7 7 20 21 Consolidated $ 2,101 $ 2,037 $ 6,264 $ 5,977 Amortization of purchased intangibles Allstate Protection $ 46 $ 52 $ 138 $ 154 Protection Services 10 12 28 36 Allstate Health and Benefits — 3 1 9 All other 3 4 8 11 Consolidated $ 59 $ 71 $ 175 $ 210 Income tax expense (benefit) Allstate Protection and Run-off Property-Liability $ 817 $ 257 $ 1,315 $ 599 Protection Services 15 14 44 43 Allstate Health and Benefits (1) 216 8 474 34 Corporate 29 ( 25 ) ( 26 ) ( 75 ) All other ( 2 ) — ( 5 ) 2 Consolidated $ 1,075 $ 254 $ 1,802 $ 603 (1) Includes income tax expense on the gain on sale of the EVB and group health businesses. Capital expenditures for long-lived assets are generally made at the Property-Liability level as the Company does not allocate assets to the Allstate Protection and Run-off Property-Liability segments. A portion of these long-lived assets are used by entities included in the Protection Services, Corporate and until July 1, 2025, Allstate Health and Benefits segments and accordingly, are charged to these segments in proportion to their use. Reportable segments total assets, investments and deferred policy acquisition costs ($ in millions) September 30, 2025 December 31, 2024 Assets Allstate Protection and Run-off Property-Liability $ 105,668 $ 96,988 Protection Services 8,442 7,540 Allstate Health and Benefits — 3,714 Corporate 5,318 2,727 All other 974 648 Consolidated $ 120,402 $ 111,617 Investments (1) Allstate Protection and Run-off Property-Liability $ 74,390 $ 67,671 Protection Services 2,501 2,228 Allstate Health and Benefits (2) — 219 Corporate 5,240 2,332 All other 197 160 Consolidated $ 82,328 $ 72,610 Deferred policy acquisition costs Allstate Protection $ 2,802 $ 2,548 Protection Services 3,212 3,161 Allstate Health and Benefits (2) — 1 All other 81 63 Consolidated $ 6,095 $ 5,773 (1) The balances reflect the elimination of related party investments between segments. (2) As of December 31, 2024, $ 1.91 billion of investments and $ 521 million of deferred policy acquisition costs were classified as held for sale and not included in the table above. 12 www.allstate.com Notes to Condensed Consolidated Financial Statements Note 5 Investments Portfolio composition ($ in millions) September 30, 2025 December 31, 2024 Fixed income securities, at fair value $ 57,186 $ 52,747 Equity securities, at fair value 5,338 4,463 Mortgage loans, net 831 784 Limited partnership interests 9,213 9,255 Short-term investments, at fair value 8,743 4,537 Other investments, net 1,017 824 Total $ 82,328 $ 72,610 Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses September 30, 2025 U.S. government and agencies $ 13,490 $ 55 $ ( 20 ) $ 13,525 Municipal 6,258 67 ( 99 ) 6,226 Corporate 32,484 656 ( 260 ) 32,880 Foreign government 1,422 23 ( 10 ) 1,435 Asset-backed securities (“ABS”) 976 13 ( 3 ) 986 Mortgage-backed securities (“MBS”) 2,102 34 ( 2 ) 2,134 Total fixed income securities $ 56,732 $ 848 $ ( 394 ) $ 57,186 December 31, 2024 U.S. government and agencies $ 11,423 $ 15 $ ( 330 ) $ 11,108 Municipal 8,985 33 ( 176 ) 8,842 Corporate 30,630 272 ( 710 ) 30,192 Foreign government 1,352 22 ( 10 ) 1,364 ABS 1,130 19 ( 4 ) 1,145 MBS 96 — — 96 Total fixed income securities $ 53,616 $ 361 $ ( 1,230 ) $ 52,747 Scheduled maturities for fixed income securities ($ in millions) September 30, 2025 December 31, 2024 Amortized cost, net Fair value Amortized cost, net Fair value Due in one year or less $ 1,941 $ 1,929 $ 1,544 $ 1,531 Due after one year through five years 22,197 22,331 22,889 22,595 Due after five years through ten years 20,443 20,699 17,431 17,130 Due after ten years 9,073 9,107 10,526 10,250 53,654 54,066 52,390 51,506 ABS and MBS 3,078 3,120 1,226 1,241 Total $ 56,732 $ 57,186 $ 53,616 $ 52,747 Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS and MBS are shown separately because of potential prepayment of principal prior to contractual maturity dates. Third Quarter 2025 Form 10-Q 13 Notes to Condensed Consolidated Financial Statements Net investment income ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Fixed income securities $ 634 $ 587 $ 1,844 $ 1,684 Equity securities 19 17 56 50 Mortgage loans 11 9 30 27 Limited partnership interests 226 138 494 440 Short-term investments 104 87 273 216 Other investments 26 25 71 71 Investment income, before expense 1,020 863 2,768 2,488 Investment expense ( 71 ) ( 80 ) ( 211 ) ( 229 ) Net investment income $ 949 $ 783 $ 2,557 $ 2,259 Net gains (losses) on investments and derivatives by type ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Fixed income securities $ 107 $ 105 $ ( 271 ) $ ( 92 ) Equity securities 191 119 243 195 Mortgage loans ( 6 ) ( 1 ) ( 6 ) — Limited partnership interests ( 32 ) ( 8 ) ( 24 ) ( 13 ) Derivatives 6 20 ( 78 ) ( 3 ) Other investments ( 14 ) 8 ( 38 ) 12 Other (1) — — ( 67 ) ( 123 ) Net gains (losses) on investments and derivatives $ 252 $ 243 $ ( 241 ) $ ( 24 ) (1) 2025 is related to losses recorded for variable interests in Adirondack Insurance Exchange (“Adirondack”) and New Jersey Skylands Insurance Association (“Skylands”) (together “Reciprocal Exchanges”). 2024 is related to losses for the carrying value of the surplus notes issued by the Reciprocal Exchanges. See Note 8 for further detail. Net gains (losses) on investments and derivatives by transaction type ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Sales $ 69 $ 116 $ ( 313 ) $ ( 85 ) Credit losses ( 23 ) ( 12 ) ( 103 ) ( 143 ) Valuation change of equity investments (1) 200 119 253 207 Valuation change and settlements of derivatives 6 20 ( 78 ) ( 3 ) Net gains (losses) on investments and derivatives $ 252 $ 243 $ ( 241 ) $ ( 24 ) (1) Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities. Gross realized gains (losses) on sales of fixed income securities ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Gross realized gains $ 142 $ 201 $ 329 $ 275 Gross realized losses ( 35 ) ( 93 ) ( 600 ) ( 363 ) Net appreciation (decline) recognized in net income for assets that are still held ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Equity securities $ 178 $ 107 $ 291 $ 170 Limited partnership interests carried at fair value 16 18 ( 13 ) 65 Total $ 194 $ 125 $ 278 $ 235 14 www.allstate.com Notes to Condensed Consolidated Financial Statements Credit losses recognized in net income ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Fixed income securities: Municipal $ — $ ( 2 ) $ — $ ( 2 ) Corporate — ( 1 ) — ( 2 ) Total fixed income securities — ( 3 ) — ( 4 ) Mortgage loans ( 6 ) ( 1 ) ( 6 ) — Limited partnership interests ( 8 ) ( 8 ) ( 12 ) ( 24 ) Other investments Bank loans ( 3 ) — ( 12 ) 5 Real estate ( 6 ) — ( 6 ) 2 Other assets — — ( 52 ) ( 123 ) Commitments to fund line of credit, commercial mortgage loans and bank loans — — ( 15 ) 1 Total $ ( 23 ) $ ( 12 ) $ ( 103 ) $ ( 143 ) Unrealized net capital gains and losses included in accumulated other comprehensive income (“AOCI”) ($ in millions) Fair value Gross unrealized Unrealized net gains (losses) September 30, 2025 Gains Losses Fixed income securities $ 57,186 $ 848 $ ( 394 ) $ 454 Short-term investments 8,743 — — — Derivative instruments (1) — — ( 2 ) ( 2 ) Unrealized net capital gains and losses, pre-tax 452 Reclassification of noncontrolling interest — Deferred income taxes ( 101 ) Unrealized net capital gains and losses, after-tax $ 351 December 31, 2024 Fixed income securities $ 52,747 $ 361 $ ( 1,230 ) $ ( 869 ) Short-term investments 4,537 — ( 2 ) ( 2 ) Derivative instruments (1) — — ( 2 ) ( 2 ) Investments classified as held for sale ( 110 ) Unrealized net capital gains and losses, pre-tax ( 983 ) Reclassification of noncontrolling interest 3 Deferred income taxes 209 Unrealized net capital gains and losses, after-tax $ ( 771 ) (1) Includes the effective portion of losses on terminated cash flow hedges. Change in unrealized net capital gains (losses) ($ in millions) Nine months ended September 30, 2025 Fixed income securities $ 1,323 Short-term investments 2 Derivative instruments — Investments classified as held for sale (1) 110 Total 1,435 Reclassification of noncontrolling interest ( 3 ) Deferred income taxes ( 310 ) Change in unrealized net capital gains and losses, after-tax $ 1,122 (1) Unrealized net capital gains and losses for investments disposed of in the EVB business sale. Mortgage loans The Company’s mortgage loans totaled $ 831 million and $ 784 million, net of credit loss allowance, as of September 30, 2025 and December 31, 2024, respectively, and are primarily commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States. Substantially all of the commercial mortgage loans are non-recourse to the borrower. Residential mortgage loans totaled $ 151 million and $ 61 million as of September 30, 2025 and December 31, 2024, respectively, and have recourse to the borrower. Third Quarter 2025 Form 10-Q 15 Notes to Condensed Consolidated Financial Statements Limited partnership interests Carrying value for limited partnership interests ($ in millions) September 30, 2025 December 31, 2024 Private equity $ 7,515 $ 7,734 Real estate 1,466 1,236 Other (1) 232 285 Total $ 9,213 $ 9,255 (1) Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities. Short-term investments, including money market funds, commercial paper, U.S. Treasury bills, fixed income securities with a contractual maturity of one year or less at time of acquisition and other short-term investments, are carried at fair value. As of September 30, 2025 and December 31, 2024, the fair value of short-term investments totaled $ 8.74 billion and $ 4.54 billion, respectively. Other investments primarily consist of bank loans, real estate and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net. Real estate is carried at cost less accumulated depreciation. Other investments by asset type ($ in millions) September 30, 2025 December 31, 2024 Bank loans, net $ 383 $ 201 Real estate 621 620 Other 13 3 Total $ 1,017 $ 824 Portfolio monitoring and credit losses Fixed income securities The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security that may require a credit loss allowance . For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance would be written-off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses recorded in earnings. If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s current effective rate and is compared to the amortized cost of the security. The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security is considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, credit ratings and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings. When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company reduces the credit loss allowance. 16 www.allstate.com Notes to Condensed Consolidated Financial Statements Recoveries after write-offs are recognized when received. Accrued interest excluded from the amortized cost of fixed income securities totaled $ 561 million and $ 574 million as of September 30, 2025 and December 31, 2024, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. The Company monitors accrued interest and writes off amounts when they are not expected to be received. The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. The process also includes the monitoring of other credit loss indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential credit losses using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of credit losses for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value requires a credit loss allowance are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the extent to which the fair value has been less than amortized cost. Rollforward of credit loss allowance for fixed income securities Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Beginning balance $ ( 17 ) $ ( 19 ) $ ( 17 ) $ ( 36 ) Credit losses on securities for which credit losses not previously reported — ( 3 ) ( 1 ) ( 10 ) Net (increases) decreases related to credit losses previously reported — — 1 3 (Increase) decrease related to sales and other — — — 3 Write-offs 12 — 12 18 Ending balance $ ( 5 ) $ ( 22 ) $ ( 5 ) $ ( 22 ) Components of credit loss allowance as of September 30 Municipal bonds $ — $ ( 2 ) Corporate bonds ( 4 ) ( 18 ) ABS ( 1 ) ( 2 ) Total $ ( 5 ) $ ( 22 ) Third Quarter 2025 Form 10-Q 17 Notes to Condensed Consolidated Financial Statements Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1) ($ in millions) Less than 12 months 12 months or more Total unrealized losses Number of issues Fair value Unrealized losses Number of issues Fair value Unrealized losses September 30, 2025 Fixed income securities U.S. government and agencies 36 $ 6,679 $ ( 16 ) 74 $ 260 $ ( 4 ) $ ( 20 ) Municipal 342 2,262 ( 49 ) 526 958 ( 50 ) ( 99 ) Corporate 351 3,030 ( 18 ) 852 5,393 ( 242 ) ( 260 ) Foreign government 45 173 ( 3 ) 56 43 ( 7 ) ( 10 ) ABS 20 85 ( 1 ) 12 44 ( 2 ) ( 3 ) MBS 49 541 ( 2 ) 64 3 — ( 2 ) Total fixed income securities 843 $ 12,770 $ ( 89 ) 1,584 $ 6,701 $ ( 305 ) $ ( 394 ) Investment grade fixed income securities 695 $ 12,102 $ ( 82 ) 1,428 $ 5,955 $ ( 271 ) $ ( 353 ) Below investment grade fixed income securities 148 668 ( 7 ) 156 746 ( 34 ) ( 41 ) Total fixed income securities 843 $ 12,770 $ ( 89 ) 1,584 $ 6,701 $ ( 305 ) $ ( 394 ) December 31, 2024 Fixed income securities U.S. government and agencies 179 $ 8,520 $ ( 256 ) 99 $ 801 $ ( 74 ) $ ( 330 ) Municipal 990 4,889 ( 67 ) 1,089 1,693 ( 109 ) ( 176 ) Corporate 943 9,178 ( 166 ) 1,237 7,877 ( 544 ) ( 710 ) Foreign government 42 159 ( 2 ) 73 73 ( 8 ) ( 10 ) ABS 15 76 — 15 51 ( 4 ) ( 4 ) MBS 35 2 — 70 5 — — Total fixed income securities 2,204 $ 22,824 $ ( 491 ) 2,583 $ 10,500 $ ( 739 ) $ ( 1,230 ) Investment grade fixed income securities 2,002 $ 21,846 $ ( 473 ) 2,367 $ 9,281 $ ( 655 ) $ ( 1,128 ) Below investment grade fixed income securities 202 978 ( 18 ) 216 1,219 ( 84 ) ( 102 ) Total fixed income securities 2,204 $ 22,824 $ ( 491 ) 2,583 $ 10,500 $ ( 739 ) $ ( 1,230 ) (1) Includes fixed income securities with fair values of $ 8 million and $ 16 million and unrealized losses of zero and $ 1 million with credit loss allowances of $ 1 million and $ 3 million as of September 30, 2025 and December 31, 2024, respectively. Gross unrealized losses by unrealized loss position and credit quality as of September 30, 2025 ($ in millions) Investment grade Below investment grade Total Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) $ ( 331 ) $ ( 37 ) $ ( 368 ) Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (2) ( 22 ) ( 4 ) ( 26 ) Total unrealized losses $ ( 353 ) $ ( 41 ) $ ( 394 ) (1) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses. (2) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. Investment grade is defined as a security having a National Association of Insurance Commissioners (“NAIC”) designation of 1 or 2, which is comparable to a rating of Aaa, Aa, A or Baa from Moody’s Investors Service (“Moody’s”) or AAA, AA, A or BBB from S&P Global Ratings (“S&P”), or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase. The unrealized losses are expected to reverse as the securities approach maturity. ABS and MBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the 18 www.allstate.com Notes to Condensed Consolidated Financial Statements expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets. As of September 30, 2025, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis. Loans The Company establishes a credit loss allowance for mortgage loans and bank loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company. The Company uses a probability of default and loss given default model for mortgage loans and bank loans to estimate current expected credit losses that considers all relevant information available including past events, current conditions, and reasonable and supportable forecasts over the life of an asset. The Company also considers such factors as historical losses, expected prepayments and various economic factors. For mortgage loans, the Company considers origination vintage year and property level information such as debt service coverage, property type, property location and collateral value. For bank loans, the Company considers the credit rating of the borrower, credit spreads and type of loan. After the reasonable and supportable forecast period, the Company’s model reverts to historical loss trends. Loans are evaluated on a pooled basis when they share similar risk characteristics. The Company monitors loans through a quarterly credit monitoring process to determine when they no longer share similar risk characteristics and are to be evaluated individually when estimating credit losses. Loans are written off against their corresponding allowances when there is no reasonable expectation of recovery. If a loan recovers after a write-off, the estimate of expected credit losses includes the expected recovery. Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued income receivable is monitored for recoverability and when not expected to be collected is written off through net investment income. Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost. Mortgage loans When it is determined a mortgage loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as using collateral value less estimated costs to sell where applicable, including when foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. When collateral value is used, the mortgage loans may not have a credit loss allowance when the fair value of the collateral exceeds the loan’s amortized cost. An alternative approach may be utilized to estimate credit losses using the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate. Individual loan credit loss allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell, when applicable, or present value of the loan’s expected future repayment cash flows. Debt service coverage ratio is considered a key credit quality indicator when commercial mortgage loan credit loss allowances are estimated. Debt service coverage ratio represents the amount of estimated cash flow from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process. If the debt service coverage ratio is below 1.0 and the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees, the commercial loans may not be considered impaired. Third Quarter 2025 Form 10-Q 19 Notes to Condensed Consolidated Financial Statements Commercial mortgage loans amortized cost by debt service coverage ratio distribution and year of origination September 30, 2025 December 31, 2024 ($ in millions) 2020 and prior 2021 2022 2023 2024 2025 Total Total 1.0 - 1.25 $ 37 $ — $ — $ 25 $ 39 $ — $ 101 $ 137 1.26 - 1.50 31 — 42 19 — — 92 105 Above 1.50 202 164 47 76 15 — 504 493 Amortized cost before allowance $ 270 $ 164 $ 89 $ 120 $ 54 $ — $ 697 $ 735 Allowance ( 17 ) ( 12 ) Amortized cost, net $ 680 $ 723 Payment status of mortgage loans September 30, 2025 ($ in millions) Commercial Residential Total Less than 90 days past due $ 23 $ 1 $ 24 90 days or greater past due — — — Total past due before allowance 23 1 24 Current before allowance 674 151 825 Total mortgage loans before allowance 697 152 849 Allowance ( 17 ) ( 1 ) ( 18 ) Total mortgage loans $ 680 $ 151 $ 831 Payments on all mortgage loans were current as of December 31, 2024. Rollforward of credit loss allowance for mortgage loans Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Beginning balance $ ( 12 ) $ ( 10 ) $ ( 12 ) $ ( 11 ) Net increases related to credit losses ( 6 ) ( 1 ) ( 6 ) — Write-offs — — — — Ending balance $ ( 18 ) $ ( 11 ) $ ( 18 ) $ ( 11 ) Components of credit loss allowance as of September 30 Commercial $ ( 17 ) $ ( 11 ) Residential ( 1 ) — Total $ ( 18 ) $ ( 11 ) Bank loans When it is determined a bank loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate. Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss allowances are estimated. The ratings are either received from the Securities Valuation Office of the NAIC based on availability of applicable ratings from rating agencies on the NAIC credit rating provider list or a comparable internal rating. The year of origination is determined to be the year in which the asset is acquired. 20 www.allstate.com Notes to Condensed Consolidated Financial Statements Bank loans amortized cost by credit rating and year of origination September 30, 2025 December 31, 2024 ($ in millions) 2020 and prior 2021 2022 2023 2024 2025 Total Total NAIC 1 / A $ — $ — $ — $ — $ 44 $ 155 $ 199 $ 45 NAIC 2 / BBB — — — — 1 49 50 6 NAIC 3 / BB — — 1 2 8 14 25 27 NAIC 4 / B 1 2 — 28 27 50 108 122 NAIC 5-6 / CCC and below — — 1 8 1 8 18 11 Amortized cost before allowance $ 1 $ 2 $ 2 $ 38 $ 81 $ 276 $ 400 $ 211 Allowance ( 17 ) ( 10 ) Amortized cost, net $ 383 $ 201 Rollforward of credit loss allowance for bank loans ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Beginning balance $ ( 17 ) $ ( 11 ) $ ( 10 ) $ ( 22 ) Net (increases) decreases related to credit losses ( 3 ) — ( 12 ) 5 Write-offs 3 — 5 6 Ending balance $ ( 17 ) $ ( 11 ) $ ( 17 ) $ ( 11 ) Note 6 Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows: Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access. Level 2: Assets and liabilities whose values are based on the following: (a) Quoted prices for similar assets or liabilities in active markets; (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities. The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. Third Quarter 2025 Form 10-Q 21 Notes to Condensed Consolidated Financial Statements The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions. The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy: (1) Specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs. (2) Quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources. Certain assets are not carried at fair value on a recurring basis, including mortgage loans, bank loans, real estate and policy loans and are only included in the fair value hierarchy disclosure when the individual investment is reported at fair value. In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used. Summary of significant inputs and valuation techniques for Level 2 and Level 3 assets and liabilities measured at fair value on a recurring basis Level 2 measurements • Fixed income securities: U.S. government and agencies, municipal, corporate - public and foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. Corporate - privately placed: Privately placed securities are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer. Corporate - privately placed also includes redeemable preferred stock that are valued using quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads. ABS and MBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads. Certain ABS are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable. Residential MBS include prepayment speeds as a primary input for valuation. • Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active. • Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. • Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active. Over-the-counter (“OTC”) derivatives, including interest rate swaps, foreign currency swaps, total return swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, implied volatilities, index price levels, currency rates, and credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial 22 www.allstate.com Notes to Condensed Consolidated Financial Statements services industry and do not involve significant judgment. • Assets held for sale: Comprise U.S. government and agencies, municipal, corporate, MBS fixed income securities and short-term. The significant inputs and valuation techniques are based on the respective asset type as described above. Level 3 measurements • Fixed income securities: Municipal: Comprise municipal bonds that are not rated by third-party credit rating agencies. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets that are not market observable, contractual cash flows, benchmark yields and credit spreads. Also included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows. Corporate - public and privately placed: Primarily valued using a discounted cash flow model that is widely accepted in the financial services industry using inputs that have not been corroborated to be market observable. In certain situations, non-binding broker quotes where the inputs have not been corroborated to be market observable are used. Other inputs for corporate fixed income securities include expected cash flows, an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer. ABS and MBS: The primary inputs to the valuation include expected cash flows, benchmark yields, collateral performance and credit spreads. Residential MBS include prepayment speeds as a primary input for valuation. • Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets that are not market observable. • Short-term: For certain short-term investments, amortized cost is used as the best estimate of fair value. • Other investments: Certain options (including swaptions) are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements. Certain OTC interest rate swaps associated with real estate investments are valued using non-market observable counterparty valuations. • Other assets: Includes the contingent consideration provision in the sale agreement for Allstate Life Insurance Company (“ALIC”) which meets the definition of a derivative. This derivative is valued internally using a model that includes stochastically determined cash flows and inputs that include spot and forward interest rates, volatility, corporate credit spreads and a liquidity discount. This derivative is categorized as Level 3 due to the significance of non-market observable inputs. • Assets held for sale: Comprise corporate fixed income securities. The significant inputs and valuation techniques are based on the respective asset type as described above. Assets measured at fair value on a non-recurring basis Comprise long-lived assets to be disposed of by sale, including real estate, that are written down to fair value less costs to sell and bank loans, limited partnerships and commercial mortgages written down to fair value in connection with recognizing credit losses. Investments excluded from the fair value hierarchy Investments reported at net asset value (“NAV”) Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy. These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner. The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10 - 12 years. As of September 30, 2025, the Company has commitments to invest $ 127 million in limited partnership interests that are reported at net asset value. Third Quarter 2025 Form 10-Q 23 Notes to Condensed Consolidated Financial Statements Assets and liabilities measured at fair value September 30, 2025 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 13,516 $ 9 $ — $ 13,525 Municipal — 6,223 3 6,226 Corporate - public — 21,853 34 21,887 Corporate - privately placed — 10,837 156 10,993 Foreign government — 1,435 — 1,435 ABS — 962 24 986 MBS — 2,045 89 2,134 Total fixed income securities 13,516 43,364 306 57,186 Equity securities (1) 4,570 367 310 5,247 Short-term investments 3,543 5,191 9 8,743 Other investments — 14 1 $ ( 2 ) 13 Other assets 1 — 140 141 Total recurring basis assets 21,630 48,936 766 ( 2 ) 71,330 Non-recurring basis — — 100 100 Total assets at fair value $ 21,630 $ 48,936 $ 866 $ ( 2 ) $ 71,430 Investments reported at NAV 838 Total $ 72,268 Liabilities Other liabilities $ — $ ( 31 ) $ ( 1 ) $ 30 $ ( 2 ) Total recurring basis liabilities — ( 31 ) ( 1 ) 30 ( 2 ) Total liabilities at fair value $ — $ ( 31 ) $ ( 1 ) $ 30 $ ( 2 ) (1) Excludes $ 91 million of securities using the measurement alternative or the equity method of accounting. 24 www.allstate.com Notes to Condensed Consolidated Financial Statements Assets and liabilities measured at fair value December 31, 2024 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 11,099 $ 9 $ — $ 11,108 Municipal — 8,840 2 8,842 Corporate - public — 21,211 22 21,233 Corporate - privately placed — 8,849 110 8,959 Foreign government — 1,364 — 1,364 ABS — 1,119 26 1,145 MBS — 8 88 96 Total fixed income securities 11,099 41,400 248 52,747 Equity securities (1) 3,600 306 407 4,313 Short-term investments 2,016 2,516 5 4,537 Other investments — 21 1 $ ( 19 ) 3 Other assets — — 134 134 Assets held for sale 241 1,536 7 1,784 Total recurring basis assets 16,956 45,779 802 ( 19 ) 63,518 Non-recurring basis — — 3 3 Total assets at fair value $ 16,956 $ 45,779 $ 805 $ ( 19 ) $ 63,521 Investments reported at NAV 1,096 Total $ 64,617 Liabilities Other liabilities $ ( 1 ) $ ( 1 ) $ — $ 1 $ ( 1 ) Total recurring basis liabilities ( 1 ) ( 1 ) — 1 ( 1 ) Total liabilities at fair value $ ( 1 ) $ ( 1 ) $ — $ 1 $ ( 1 ) (1) Excludes $ 150 million of preferred stock measured at cost. As of September 30, 2025 and December 31, 2024, Level 3 fair value measurements of fixed income securities totaled $ 306 million and $ 248 million, respectively, and included $ 82 million and $ 87 million, respectively, of securities valued based on third-party discounted cash flow pricing models where the inputs have not been corroborated to be market observable, $ 25 million and $ 22 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 3 million and $ 2 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies. An increase (decrease) in credit spreads for fixed income securities valued based on third-party discounted cash flow pricing models or non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value. Third Quarter 2025 Form 10-Q 25 Notes to Condensed Consolidated Financial Statements Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2025 Balance as of June 30, 2025 Total gains (losses) included in: Transfers Balance as of September 30, 2025 ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements Assets Fixed income securities: Municipal $ 2 $ — $ — $ 1 $ — $ — $ — $ — $ 3 Corporate - public 35 — — — — — ( 1 ) — 34 Corporate - privately placed 109 — 1 — — 48 — ( 2 ) 156 ABS 39 — — — ( 15 ) — — — 24 MBS 88 — — — — 2 — ( 1 ) 89 Total fixed income securities 273 — 1 1 ( 15 ) 50 ( 1 ) ( 3 ) 306 Equity securities 358 ( 1 ) — — ( 48 ) 3 ( 2 ) — 310 Short-term investments 4 — — — — 6 ( 1 ) — 9 Other investments 1 — — — — — — — 1 Other assets 137 3 — — — — — — 140 Total recurring Level 3 assets 773 2 1 1 ( 63 ) 59 ( 4 ) ( 3 ) 766 Liabilities Other liabilities ( 1 ) — — — — — — — ( 1 ) Total recurring Level 3 liabilities $ ( 1 ) $ — $ — $ — $ — $ — $ — $ — $ ( 1 ) Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2025 Balance as of December 31, 2024 Total gains (losses) included in: Transfers Balance as of September 30, 2025 ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements Assets Fixed income securities: Municipal $ 2 $ — $ — $ 1 $ — $ — $ — $ — $ 3 Corporate - public 22 ( 1 ) 1 — ( 7 ) 20 ( 1 ) — 34 Corporate - privately placed 110 ( 1 ) 2 — — 48 — ( 3 ) 156 ABS 26 — — 26 ( 41 ) 15 — ( 2 ) 24 MBS 88 — — — — 2 — ( 1 ) 89 Total fixed income securities 248 ( 2 ) 3 27 ( 48 ) 85 ( 1 ) ( 6 ) 306 Equity securities 407 29 — — ( 48 ) 8 ( 86 ) — 310 Short-term investments 5 — — — — 9 ( 5 ) — 9 Other investments 1 — — — — — — — 1 Other assets 134 6 — — — — — — 140 Assets held for sale 7 — 1 — — — ( 8 ) — — Total recurring Level 3 assets 802 33 4 27 ( 96 ) 102 ( 100 ) ( 6 ) 766 Liabilities — Other liabilities — ( 1 ) — — — — — — ( 1 ) Total recurring Level 3 liabilities $ — $ ( 1 ) $ — $ — $ — $ — $ — $ — $ ( 1 ) 26 www.allstate.com Notes to Condensed Consolidated Financial Statements Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2024 Balance as of June 30, 2024 Total gains (losses) included in: Transfers Transfers (to) from held for sale Balance as of September 30, 2024 ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements Assets Fixed income securities: Municipal $ 7 $ ( 2 ) $ — $ — $ — $ — $ — $ — $ — $ 5 Corporate - public 30 — — — — ( 7 ) 5 — — 28 Corporate - privately placed 50 — — — — — 1 — — 51 ABS and MBS 71 — — — — — 27 — ( 1 ) 97 Total fixed income securities 158 ( 2 ) — — — ( 7 ) 33 — ( 1 ) 181 Equity securities 393 12 — — — — 5 ( 2 ) — 408 Short-term investments 1 — — — — — 1 — — 2 Other investments 2 — — — — — — — — 2 Other assets 121 2 — — — — — — — 123 Assets held for sale — — — — — 7 — — — 7 Total recurring Level 3 assets 675 12 — — — — 39 ( 2 ) ( 1 ) 723 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2024 Balance as of December 31, 2023 Total gains (losses) included in: Transfers Transfers (to) from held for sale Balance as of September 30, 2024 ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements Assets Fixed income securities: Municipal $ 11 $ ( 2 ) $ — $ — $ — $ — $ — $ ( 2 ) $ ( 2 ) $ 5 Corporate - public 26 1 1 — — ( 7 ) 16 ( 9 ) — 28 Corporate - privately placed 58 ( 6 ) — — — — 1 ( 2 ) — 51 ABS and MBS 58 — — — — — 41 — ( 2 ) 97 Total fixed income securities 153 ( 7 ) 1 — — ( 7 ) 58 ( 13 ) ( 4 ) 181 Equity securities 402 18 — — — — 14 ( 26 ) — 408 Short-term investments 1 — — — — — 22 ( 20 ) ( 1 ) 2 Other investments 2 — — — — — — — — 2 Other assets 118 5 — — — — — — — 123 Assets held for sale — — — — — 7 — — — 7 Total recurring Level 3 assets 676 16 1 — — — 94 ( 59 ) ( 5 ) 723 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Total Level 3 gains (losses) included in net income Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Net investment income $ 1 $ — $ 1 $ 1 Net gains (losses) on investments and derivatives ( 2 ) 10 25 10 Operating costs and expenses 3 2 6 5 Transfers into Level 3 during the three and nine months ended September 30, 2025 included situations where a rating was not provided by third-party rating agencies resulting in the security being classified as Level 3. Transfers into Level 3 during the nine months ended September 30, 2025 also included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Third Quarter 2025 Form 10-Q 27 Notes to Condensed Consolidated Financial Statements Transfers out of Level 3 during the three and nine months ended September 30, 2025 included situations where a quote that was not provided by the Company’s independent third-party valuation service provider in the prior period became available in the current period. Any gains or losses related to the change in valuation source for individual securities were not significant. There were no transfers into or out of Level 3 during the three and nine months ended September 30, 2024. Valuation changes included in net income and OCI for Level 3 assets and liabilities still held Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Assets Fixed income securities: Municipal $ — $ ( 2 ) $ — $ ( 2 ) Corporate - public — — ( 1 ) 1 Corporate - privately placed — — — ( 6 ) Total fixed income securities — ( 2 ) ( 1 ) ( 7 ) Equity securities ( 2 ) 12 27 23 Other assets 3 2 6 5 Total recurring Level 3 assets $ 1 $ 12 $ 32 $ 21 Liabilities Other liabilities $ — $ — $ ( 1 ) $ — Total recurring Level 3 liabilities — — ( 1 ) — Total included in net income $ 1 $ 12 $ 31 $ 21 Components of net income Net investment income $ 1 $ — $ 1 $ 1 Net gains (losses) on investments and derivatives ( 3 ) 10 24 15 Operating costs and expenses 3 2 6 5 Total included in net income $ 1 $ 12 $ 31 $ 21 Assets Corporate - public $ — $ — $ 1 $ 1 Corporate - privately placed 1 — 2 — Changes in unrealized net capital gains and losses reported in OCI $ 1 $ — $ 3 $ 1 Financial instruments not carried at fair value ($ in millions) September 30, 2025 December 31, 2024 Financial assets Fair value level Amortized cost, net (1) Fair value Amortized cost, net (1) Fair value Mortgage loans Level 3 $ 831 $ 818 $ 784 $ 746 Bank loans Level 3 383 394 201 207 Financial liabilities Fair value level Carrying value (1) Fair value Carrying value (1) Fair value Debt Level 2 $ 8,089 $ 7,997 $ 8,085 $ 7,740 Liability for collateral Level 2 1,859 1,859 2,041 2,041 Liabilities held for sale Level 3 — — 40 40 (1) Represents the amounts reported on the Condensed Consolidated Statements of Financial Position. Note 7 Derivative Financial Instruments The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication. Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations. Asset replication refers to the “synthetic” creation of assets through the use of derivatives. The Company replicates fixed income securities using a combination of a credit default swap, index total return swap, options, futures, or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically replicate the economic characteristics of one or more cash market securities. The Company replicates equity 28 www.allstate.com Notes to Condensed Consolidated Financial Statements securities using futures, index total return swaps, and options to increase equity exposure. Property-Liability may use interest rate swaps, swaptions, futures and options to manage the interest rate risks of existing investments. These instruments are utilized to change the duration of the portfolio in order to offset the economic effect that interest rates would otherwise have on the fair value of its fixed income securities. Fixed income index total return swaps are used to offset valuation losses in the fixed income portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Equity index total return swaps, futures and options are used by Property-Liability to offset valuation losses in the equity portfolio. In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts. Equity derivatives may also be utilized to replicate cash market positions to increase equity exposure. Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations. As of September 30, 2025 and December 31, 2024, the Company has not designated any fair value, cash flow or net investment hedge accounting relationships. Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries. Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements (“MNAs”) and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position. In connection with the sale of ALIC and certain affiliates in 2021, the sale agreement included a provision related to contingent consideration that may be earned over a ten-year period with the first potential payment date commencing on January 1, 2026 and a final potential payment date of January 1, 2035. The contingent consideration is determined annually based on the average ten-year U.S. Treasury rate over the preceding three-year period compared to a designated rate. The contingent consideration meets the definition of a derivative and is accounted for on a fair value basis with periodic changes in fair value reflected in earnings. There are no collateral requirements related to the contingent consideration. Third Quarter 2025 Form 10-Q 29 Notes to Condensed Consolidated Financial Statements Summary of the volume and fair value positions of derivative instruments as of September 30, 2025 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Interest rate cap agreements Other investments $ 37 n/a $ — $ — $ — Futures Other assets n/a 5,311 — — — Equity and index contracts Options Other investments n/a 65 — — — Futures Other assets n/a 1,016 1 1 — Contingent consideration Other assets 250 n/a 140 140 — Credit default contracts Credit default swaps - selling protection Other investments 500 n/a 12 12 — Total asset derivatives $ 787 6,392 $ 153 $ 153 $ — Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Interest rate swap agreements Other liabilities and accrued expenses $ 37 n/a $ ( 1 ) $ — $ ( 1 ) Futures Other liabilities and accrued expenses n/a 3,503 — — — Equity and index contracts Options Other liabilities and accrued expenses n/a 65 — — — Futures Other liabilities and accrued expenses n/a 38 — — — Foreign currency contracts Foreign currency forwards Other liabilities and accrued expenses 537 n/a ( 29 ) 2 ( 31 ) Total liability derivatives 574 3,606 ( 30 ) $ 2 $ ( 32 ) Total derivatives $ 1,361 9,998 $ 123 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) Summary of the volume and fair value positions of derivative instruments as of December 31, 2024 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 4,596 $ — $ — $ — Equity and index contracts Futures Other assets n/a 437 — — — Foreign currency contracts Foreign currency forwards Other investments $ 602 n/a 20 21 ( 1 ) Contingent consideration Other assets 250 n/a 134 134 — Total asset derivatives $ 852 5,033 $ 154 $ 155 $ ( 1 ) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities and accrued expenses n/a 12,112 $ ( 1 ) $ — $ ( 1 ) Equity and index contracts Futures Other liabilities and accrued expenses n/a 662 — — — Total liability derivatives — 12,774 ( 1 ) $ — $ ( 1 ) Total derivatives $ 852 17,807 $ 153 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) 30 www.allstate.com Notes to Condensed Consolidated Financial Statements Gross and net amounts for OTC derivatives (1) ($ in millions) Offsets Gross amount Counter-party netting Cash collateral (received) pledged Net amount on balance sheet Securities collateral (received) pledged Net amount September 30, 2025 Asset derivatives $ 2 $ ( 2 ) $ — $ — $ — $ — Liability derivatives ( 32 ) 2 28 ( 2 ) — ( 2 ) December 31, 2024 Asset derivatives $ 21 $ ( 1 ) $ ( 18 ) $ 2 $ — $ 2 Liability derivatives ( 1 ) 1 — — — — (1) All OTC derivatives are subject to enforceable MNAs. Gains (losses) from valuation and settlements reported on derivatives ($ in millions) Net gains (losses) on investments and derivatives Operating costs and expenses Total gain (loss) recognized in net income on derivatives Three months ended September 30, 2025 Interest rate contracts $ 2 $ — $ 2 Equity and index contracts ( 2 ) 15 13 Contingent consideration — 3 3 Foreign currency contracts 6 — 6 Total $ 6 $ 18 $ 24 Nine months ended September 30, 2025 Interest rate contracts $ ( 8 ) $ — $ ( 8 ) Equity and index contracts ( 10 ) 21 11 Contingent consideration — 6 6 Foreign currency contracts ( 50 ) — ( 50 ) Credit default contracts ( 10 ) — ( 10 ) Total $ ( 78 ) $ 27 $ ( 51 ) Three months ended September 30, 2024 Interest rate contracts $ 42 $ — $ 42 Equity and index contracts ( 2 ) 10 8 Contingent consideration — 2 2 Foreign currency contracts ( 23 ) — ( 23 ) Credit default contracts 3 — 3 Total $ 20 $ 12 $ 32 Nine months ended September 30, 2024 Interest rate contracts $ 21 $ — $ 21 Equity and index contracts ( 17 ) 24 7 Contingent consideration — 5 5 Foreign currency contracts ( 9 ) — ( 9 ) Credit default contracts 2 — 2 Total $ ( 3 ) $ 29 $ 26 The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable MNAs and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. OTC cash and securities collateral pledged ($ in millions) September 30, 2025 Pledged by the Company $ 28 Pledged to the Company (1) — (1) $ 28 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and Third Quarter 2025 Form 10-Q 31 Notes to Condensed Consolidated Financial Statements guarantee the execution of trades, thereby mitigating any potential credit risk. Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable MNAs. OTC derivatives counterparty credit exposure by counterparty credit rating ($ in millions) September 30, 2025 December 31, 2024 Rating (1) Number of counter-parties Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) Number of counter-parties Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) AA- 1 $ 37 $ — $ — 1 $ 213 $ 10 $ 1 A+ — — — — 3 389 10 1 Total 1 $ 37 $ — $ — 4 $ 602 $ 20 $ 2 (1) Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings. (2) Only OTC derivatives with a net positive fair value are included for each counterparty. For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. Exchange traded and cleared margin deposits ($ in millions) September 30, 2025 Pledged by the Company $ 88 Received by the Company 1 Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. Certain of the Company’s derivative transactions contain credit-risk-contingent termination events and cross-default provisions. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs. ($ in millions) September 30, 2025 December 31, 2024 Gross liability fair value of contracts containing credit-risk-contingent features $ 31 $ 1 Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs ( 2 ) ( 1 ) Collateral posted under MNAs for contracts containing credit-risk-contingent features ( 28 ) — Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ 1 $ — Credit derivatives - selling protection A credit default swap (“CDS”) is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. In selling protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative. CDS typically have a five-year term. CDS notional amounts by credit rating and fair value of protection sold ($ in millions) Notional amount AAA AA A BBB BB and lower Total Fair value September 30, 2025 Index Corporate debt $ — $ — $ — $ 500 $ — $ 500 $ 12 Total $ — $ — $ — $ 500 $ — $ 500 $ 12 32 www.allstate.com Notes to Condensed Consolidated Financial Statements As of December 31, 2024, there were no open CDS positions. The Company sells credit protection through contracts on standardized credit indices (“CDX”), generally investment grade, which are centrally cleared through a registered Derivatives Clearing Organization, and in return receives periodic premiums through the expiration or termination of the contract. A CDX is utilized to take a position on multiple (generally 125) reference entities. Credit events are typically defined as bankruptcy, failure to pay, or restructuring, depending on the nature of the reference entities. When a credit event occurs for a reference entity within the index, the affected name is removed from the index, and the contract continues until expiration. Settlement is conducted through an auction process, whereby the Company pays the difference between the contract’s notional amount and the final recovery value of the reference obligation as determined by the auction. The maximum payout on a CDX is the contract notional amount. Note 8 Variable Interest Entities Consolidated VIEs primarily include Adirondack, a New York reciprocal insurer, and Skylands, a New Jersey reciprocal insurer. The Reciprocal Exchanges are insurance carriers organized as unincorporated associations. The Company does not own the equity of the Reciprocal Exchanges, which is owned by their respective policyholders. The results of the Reciprocal Exchanges are included in the Allstate Protection segment as the Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance. Due to ongoing operating losses, the Company recorded a loss related to variable interests held in the Reciprocal Exchanges of $ 67 million in the first quarter of 2025 and $ 123 million in the first quarter of 2024. These losses have been reflected as capital transactions attributable to noncontrolling interest as the Company expects 100 % of its interests in surplus notes and lines of credit to absorb expected losses of the Reciprocal Exchanges. Adirondack has withdrawn and stopped writing new business and Skylands has withdrawn substantially all business and stopped writing new business. As the reciprocal insurers are dissolved, policyholders will share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges. The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company. The New York State Department of Financial Services approved the withdrawal plan for Adirondack to non-renew or cancel all policies effective as of December 31, 2024. Additionally, the Company waived all fees payable by Adirondack after July 1, 2024, excluding Loss Adjustment Expenses associated with individual claims. The New Jersey Department of Banking and Insurance acknowledged the withdrawal plan filed on behalf of Skylands to withdraw from providing personal lines insurance, except dwelling fire and watercraft policies, beginning December 14, 2024. Skylands has a 100 % quota share reinsurance agreement to cede all of Skylands’ business to the Company. Claims and claims expense ceded to the Company were $( 1 ) million and $( 1 ) million for the three and nine months ended September 30, 2025, respectively, compared to $( 6 ) million and $ 24 million for the three and nine months ended September 30, 2024, respectively. Prior to July 1, 2024, the Company received a management fee for the services provided to the Reciprocal Exchanges. The management fees were $ 2 million and $ 23 million for the three and nine months ended September 30, 2024, respectively. Earned premiums for the Reciprocal Exchanges generated zero and $( 1 ) million for the three and nine months ended September 30, 2025, respectively, compared to $ 48 million and $ 170 million for the three and nine months ended September 30, 2024, respectively. Total costs and expenses were $ 3 million and $ 10 million for the three and nine months ended September 30, 2025, respectively, compared to $ 62 million and $ 207 million for the three and nine months ended September 30, 2024, respectively. Third Quarter 2025 Form 10-Q 33 Notes to Condensed Consolidated Financial Statements Assets and liabilities of Reciprocal Exchanges ($ in millions) September 30, 2025 December 31, 2024 Assets Fixed income securities $ 3 $ 47 Short-term investments 74 112 Premium installment and other receivables, net — 9 Reinsurance recoverables, net 32 76 Other assets — 25 Total assets $ 109 $ 269 Liabilities Reserve for property and casualty insurance claims and claims expense $ 131 $ 214 Unearned premiums — 22 Other liabilities and expenses 187 235 Total liabilities $ 318 $ 471 Note 9 Reserve for Property and Casualty Insurance Claims and Claims Expense The Company establishes reserves for claims and claims expense on reported and unreported claims of insured losses. The Company’s reserving process considers known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in laws and regulations, judicial decisions and economic conditions. When the Company experiences changes in the mix or type of claims or changing claim settlement patterns or data, it applies actuarial judgment in the determination and selection of development factors to develop reserve liabilities. Inflation and a higher mix of more complex repairs, combined with skilled labor shortages, have increased physical damage loss costs. Medical inflation, increased treatment trends, higher attorney representation, rising litigation costs and more severe accidents have contributed to higher third-party bodily injury loss costs. The Company continues to digitize and modernize claim processes to increase effectiveness and efficiency. These factors may lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. Generally, the initial reserves for a new accident year are established based on claim frequency and severity assumptions for different business segments, lines and coverages based on historical relationships to relevant inflation indicators. Reserves for prior accident years are statistically determined using several different actuarial estimation methods. Changes in auto claim frequency may result from changes in mix of business, driving behaviors, miles driven or other factors. Changes in auto current year claim severity are generally influenced by inflation in the medical and auto repair sectors, changes in attorney represented and litigated claim behavior, the effectiveness and efficiency of claim settlements and changes in mix of claim types. When changes in claim data occur, actuarial judgment is used to determine appropriate development factors to establish reserves. The Company’s reserving process incorporates changes in loss patterns, operational statistics and changes in claims reporting processes to determine its best estimate of recorded reserves. As part of the reserving process, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, Run-off Property-Liability and reinsurance and indemnification recoverables, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the initial reporting period as it contains the greatest proportion of losses that have not been reported or settled as well as heightened uncertainty for claims that involve litigation or take longer to settle during periods of rapidly increasing loss costs. The Company also has uncertainty in the Run-off Property-Liability reserves that are based on events long since passed and are complicated by lack of historical data, legal interpretations, unresolved legal issues and legislative intent based on establishment of facts. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in reserve estimates, which may be material, are reported in property and casualty insurance claims and claims expense in the Condensed Consolidated Statements of Operations in the period such changes are determined. Management believes that the reserve for property and casualty insurance claims and claims expense, net of recoverables, is appropriately established in the 34 www.allstate.com Notes to Condensed Consolidated Financial Statements aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Condensed Consolidated Statements of Financial Position based on available facts, laws and regulations. Rollforward of the reserve for property and casualty insurance claims and claims expense Nine months ended September 30, ($ in millions) 2025 2024 Balance as of January 1 $ 41,917 $ 39,858 Less: recoverables (1) 8,602 8,396 Net balance as of January 1 33,315 31,462 Incurred claims and claims expense related to: Current year 30,763 31,033 Prior years ( 1,045 ) ( 322 ) Total incurred 29,718 30,711 Claims and claims expense paid related to: Current year ( 16,235 ) ( 15,977 ) Prior years ( 12,688 ) ( 12,181 ) Total paid ( 28,923 ) ( 28,158 ) Net balance as of September 30 34,110 34,015 Plus: recoverables 8,993 8,728 Balance as of September 30 $ 43,103 $ 42,743 (1) Recoverables comprises reinsurance and indemnification recoverables. Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the period. This expense included losses from catastrophes of $ 4.75 billion and $ 4.55 billion in the nine months ended September 30, 2025 and 2024, respectively, net of recoverables. Catastrophes are an inherent risk of the property and casualty insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position. Prior year reserve reestimates included in claims and claims expense (1) Non-catastrophe losses Catastrophe losses (2) Total ($ in millions) 2025 2024 2025 2024 2025 2024 Three months ended September 30, Auto (3) $ ( 480 ) $ ( 55 ) $ ( 3 ) $ ( 10 ) $ ( 483 ) $ ( 65 ) Homeowners ( 40 ) ( 11 ) ( 14 ) ( 1 ) ( 54 ) ( 12 ) Other personal lines 72 54 ( 6 ) ( 3 ) 66 51 Commercial lines ( 80 ) 1 ( 5 ) — ( 85 ) 1 Other business lines ( 14 ) ( 3 ) — — ( 14 ) ( 3 ) Run-off Property-Liability (4) 146 59 — — 146 59 Protection Services — 1 — — — 1 Total prior year reserve reestimates $ ( 396 ) $ 46 $ ( 28 ) $ ( 14 ) $ ( 424 ) $ 32 Nine months ended September 30, Auto (3) $ ( 1,133 ) $ ( 293 ) $ ( 30 ) $ ( 26 ) $ ( 1,163 ) $ ( 319 ) Homeowners ( 35 ) ( 114 ) 3 ( 278 ) ( 32 ) ( 392 ) Other personal lines 153 169 ( 11 ) ( 5 ) 142 164 Commercial lines ( 104 ) 164 — ( 5 ) ( 104 ) 159 Other business lines ( 39 ) 1 — — ( 39 ) 1 Run-off Property-Liability (4) 151 65 — — 151 65 Protection Services — — — — — — Total prior year reserve reestimates $ ( 1,007 ) $ ( 8 ) $ ( 38 ) $ ( 314 ) $ ( 1,045 ) $ ( 322 ) (1) Reserve releases are shown in parentheses. (2) The first nine months of 2025 includes $ 69 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024, and $ 54 million favorable subrogation settlements related to the 2021 Colorado Marshall Fire. (3) Reserve releases primarily related to favorable severity development of $ 284 million and $ 565 million in personal auto injury coverage and $ 196 million and $ 568 million in personal auto physical damage coverage in the third quarter and first nine months of 2025, respectively. (4) The Company’s 2025 and 2024 annual reserve reviews, using established industry and actuarial best practices, resulted in reserve reestimates that increased reserves by $ 146 million and $ 58 million, respectively. Third Quarter 2025 Form 10-Q 35 Notes to Condensed Consolidated Financial Statements Note 10 Reinsurance and Indemnification Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Property and casualty insurance premiums earned $ ( 640 ) $ ( 552 ) $ ( 1,791 ) $ ( 1,697 ) Accident and health insurance premiums and contract charges (1) ( 122 ) ( 16 ) ( 145 ) ( 37 ) Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident, health and other policy benefits ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Property and casualty insurance claims and claims expense (2) $ ( 163 ) $ ( 662 ) $ ( 1,989 ) $ ( 1,178 ) Accident, health and other policy benefits (1) ( 112 ) ( 13 ) ( 140 ) ( 27 ) (1) Includes group health business sold through reinsurance to Nationwide Life Insurance Company. (2) 2025 includes ceded losses related to the Nationwide Reinsurance Program for the California wildfires. Reinsurance and indemnification recoverables Reinsurance and indemnification recoverables, net ($ in millions) September 30, 2025 December 31, 2024 Property and casualty Paid and due from reinsurers and indemnitors $ 294 $ 285 Unpaid losses estimated (including IBNR) 8,993 8,602 Total property and casualty $ 9,287 $ 8,887 Accident and health insurance 232 37 Total $ 9,519 $ 8,924 Rollforward of credit loss allowance for reinsurance recoverables ($ in millions) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Property and casualty (1) (2) Beginning balance $ ( 63 ) $ ( 64 ) $ ( 63 ) $ ( 62 ) (Increase) decrease in the provision for credit losses ( 1 ) 2 ( 1 ) — Write-offs 10 — 10 — Ending balance $ ( 54 ) $ ( 62 ) $ ( 54 ) $ ( 62 ) (1) Primarily related to Run-off Property-Liability reinsurance ceded. (2) Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. Indemnification programs Federal Government - National Flood Insurance Program (“NFIP”) NFIP is a program administered by the Federal Emergency Management Agency (“FEMA”) whereby the Company sells and services NFIP flood insurance policies as an agent of FEMA and receives fees for its services. The Company is fully indemnified for claims and claim expenses and does not retain any ultimate risk for the indemnified business. The federal government is obligated to pay all claims and certain allocated loss adjustment expenses in accordance with the arrangement. Congressional authorization for the NFIP is periodically evaluated and may be subjected to freezes, including when the federal government experiences a shutdown. Congress must periodically renew the funding of the program as well as consider reforms to the program that would be incorporated in legislation to reauthorize the NFIP. Legislation that extended the NFIP authorization to September 30, 2025 has expired and the federal government shutdown has frozen the NFIP. As a result, existing policies remain valid, but insurance companies operating on behalf of the NFIP may not enter into new flood insurance contracts. The program will also have limited ability to issue increased coverage on existing policies, or issue renewal policies. The NFIP has the authority to process and pay new and existing flood insurance claims from the National Flood Insurance Fund and the National Flood Insurance Reserve Fund, but its borrowing capacity is reduced to $ 1 billion which has been exceeded by the current program debt of $ 22.5 billion. 36 www.allstate.com Notes to Condensed Consolidated Financial Statements Note 11 Company Restructuring The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include the following costs related to these programs: • Employee - severance and relocation benefits • Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $ 17 million and $ 28 million during the three months ended September 30, 2025 and 2024, respectively, and $ 48 million and $ 51 million during the nine months ended September 30, 2025 and 2024, respectively. Restructuring expenses during the third quarter and first nine months of 2025 primarily related to streamlining the organization and outsourcing certain aspects of operations. These charges are primarily recorded in the Allstate Protection segment. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future. Restructuring activity during the period ($ in millions) Employee costs Exit costs Total liability Restructuring liability as of December 31, 2024 $ 25 $ 2 $ 27 Expense incurred 45 3 48 Payments and non-cash charges ( 51 ) ( 3 ) ( 54 ) Restructuring liability as of September 30, 2025 $ 19 $ 2 $ 21 As of September 30, 2025, the cumulative amount incurred to date for active programs related to employee severance and relocation benefit expenses totaled $ 64 million. Note 12 Guarantees and Contingent Liabilities Shared markets and state facility assessments The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. The Company routinely reviews its exposure to assessments from these plans, facilities and government programs. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations in the last two years. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities or assessments from these facilities. California FAIR Plan Association On February 11, 2025, the FAIR Plan received regulatory approval to assess member insurers $ 1.00 billion. The Company’s personal lines and commercial lines average market share used for the assessment was 4.6 % and 2.0 %, respectively, net of credits. Members are allowed to request the state insurance commission’s approval to collect temporary supplemental fees from policyholders in the state in order to recoup amounts assessed. Insurers can request recoupment for 50 % of their portion of assessments up to $ 1.00 billion and 100% thereafter for each residential property and commercial property insurance. The Company paid $ 45 million in FAIR Plan assessments in the first quarter of 2025, and has received approval from the California Department of Insurance for recoupment of amounts paid. At September 30, 2025, we have accrued for the Company’s share of future estimated assessments based on the wildfire event that began on January 7, 2025. Several of the Company’s traditional markets per occurrence reinsurance agreements also provide for the inclusion of non-recoupable assessments as part of the definition of loss. Guarantees In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third-party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment of the risk of loss. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations. In connection with the sales of Allstate Life Insurance Company of New York to Wilton Reassurance Company (“Wilton”) and Allstate Life Insurance Company and Allstate Assurance Company to Everlake Third Quarter 2025 Form 10-Q 37 Notes to Condensed Consolidated Financial Statements US Holdings Company (“Everlake”) in 2021, AIC agreed to indemnify Wilton and AIC and Allstate Financial Insurance Holdings Corporation (collectively, the “Sellers”) agreed to indemnify Everlake. The indemnification is in connection with certain representations, warranties and covenants of the Sellers, and certain liabilities specifically excluded from the transactions, subject to specific contractual limitations regarding the Sellers’ maximum obligations. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company. The aggregate liability balance related to all guarantees was immaterial as of September 30, 2025. Regulation and compliance The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, prescribe rules or guidelines on how affiliates compete in the marketplace, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agency and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the SEC, the Financial Industry Regulatory Authority, the U.S. Equal Employment Opportunity Commission, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain. Legal and regulatory proceedings and inquiries The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business. Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; changes in assigned judges; differences or developments in applicable laws and judicial interpretations; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; adjustments with respect to anticipated trial schedules and other proceedings; developments in similar actions against other companies; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the challenging legal environment faced by corporations and insurance companies. The outcome of these matters may be affected by decisions, verdicts, and settlements, and the timing of such decisions, verdicts, and settlements, in other individual and class action lawsuits that involve the Company, other insurers, or other entities and by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities. The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted. In the lawsuits, plaintiffs seek a variety of remedies which may include equitable relief in the form of injunctive and other remedies and monetary relief in the form of contractual and extra-contractual damages. In some cases, the monetary damages sought may include punitive or treble damages. Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings. When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court. In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company. In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding. Accrual and disclosure policy The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for such matters at management’s best estimate, which may include the low end of a range of loss, when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not establish accruals for such matters when the 38 www.allstate.com Notes to Condensed Consolidated Financial Statements Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred. The Company continues to monitor its lawsuits, regulatory inquiries, and other legal proceedings for further developments that would make the loss contingency both probable and estimable, and accordingly accruable, or that could affect the amount of accruals that have been previously established. There may continue to be exposure to loss in excess of any amount accrued. Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual. When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued, if any, for the matters disclosed, that estimate is aggregated and disclosed. Disclosure is not required when an estimate of the reasonably possible loss or range of loss cannot be made. For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any. In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments. These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others. When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below. There may be other disclosed matters for which a loss is probable or reasonably possible, but such an estimate is not possible. Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate. The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $ 52 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies. Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted and in the Company’s judgment, a loss, in excess of amounts accrued, if any, is not probable. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company. Claims related proceedings The Company is defending putative class actions in various courts that raise challenges to the Company’s depreciation practices in homeowner property claims. In these lawsuits, plaintiffs generally allege that, when calculating actual cash value, the costs of “non-materials” such as labor, general contractor’s overhead and profit, and sales tax should not be subject to depreciation. The Company is currently defending the following lawsuits on this issue: Sims, et al. v. Allstate Fire and Casualty Insurance Company, et al. (W.D. Tex. filed June 2022); Thompson, et al. v. Allstate Insurance Company (Circuit Court of Cole Co., Mo. filed June 2022); Hill v. Allstate Vehicle and Property Insurance Compan y (Circuit Court of Cole Co., Mo. filed October 2022); and Hernandez v. Allstate Vehicle and Property Insurance Company (D. Ariz. filed April 2023). No classes have been certified in any of these matters. The Company is defending putative class actions pending in multiple states alleging that the Company underpays total loss vehicle physical damage claims on auto policies. The alleged systematic underpayments result from the following theories: (a) the third-party valuation tool used by the Company as part of a comprehensive adjustment process is allegedly flawed, biased, or contrary to applicable law; and/or (b) the Company allegedly does not pay sales tax, title fees, Third Quarter 2025 Form 10-Q 39 Notes to Condensed Consolidated Financial Statements registration fees, and/or other specified fees or costs that are allegedly mandatory under policy language or state legal authority. The Company is currently defending the following lawsuits: Golla v. Allstate Insurance Company (N.D. Ohio filed June 2023); Bibbs v. Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (N.D. Ohio filed August 2023); Katz v. Esurance Property and Casualty Insurance Company and National General Insurance Company (E.D.N.Y. filed February 2024); Schott v. Allstate Insurance Company and Allstate Property and Casualty Insurance Company (M.D. Ga. filed October 2024) and Tang v. Allstate Insurance Company, et al. (C.D. Cal. filed September 2025). No classes have been certified in any of these matters. A settlement has been reached in Jarrett-Kelly v. Direct General Insurance Agency, Inc . (Circuit Court of Pulaski Co., Ark. filed May 2024) and the case is awaiting court dismissal. The Company is defending a class action in the U.S. District Court for the District of Arizona that alleges underpayment of uninsured/underinsured motorist claims, Dorazio v. Allstate Fire and Casualty Insurance Company , filed December 2022. The plaintiffs allege that uninsured/underinsured motorist coverages must be stacked, which is combining separate uninsured/underinsured coverage limits of multiple vehicles into one higher coverage limit, where the defendants allegedly did not include specified policy language and did not provide specified notice to policyholders. A settlement in principle has been reached in Loughran v. MIC General Insurance Corporation, a second putative class action alleging the same claims. In July 2023, the Arizona Supreme Court issued a ruling in Franklin v. CSAA General Insurance , a matter involving another insurer. The Franklin decision held, under the factual circumstances of that case, that stacking of uninsured/underinsured motorist coverages was required because the insurer did not include specified policy language and did not issue specified notice. The Company is currently defending its insured in a bodily injury lawsuit arising from an automobile accident, Simon v. Holguin (Pierce County Superior Court, Wash. filed September 8, 2020). On October 21, 2022, a jury returned a verdict against the insured. The Company, on behalf of its insured, appealed the verdict to the Washington Court of Appeals, Division II, which affirmed the judgment on June 16, 2025. On September 19, 2025, the Company filed a petition for review with the Washington Supreme Court. The Company continues to defend the litigation and oppose plaintiff’s allegations. Other proceedings The Company is defending two putative class actions in the U.S. District Court for the Eastern District of California, Holland Hewitt v. Allstate Life Insurance Company filed May 2020 and Farley v. Lincoln Benefit Life Company (“LBL”) filed December 2020, following the sale of ALIC. On April 19, 2023, the district court certified a class in Farley. On August 29, 2025, the Ninth Circuit Court of Appeals reversed the district court’s order certifying a class. On March 27, 2024, the Magistrate Judge issued his Findings and Recommendations denying class certification in Hewitt. Plaintiffs filed their objection to the Magistrate’s recommendation. In these cases, plaintiffs generally allege that the defendants failed to comply with certain California statutes which address contractual grace periods and lapse notice requirements for certain life insurance policies. Plaintiffs claim that these statutes apply to life insurance policies that existed before the statutes’ effective date. The plaintiffs seek damages and injunctive relief. Similar litigation is pending against other insurance carriers. In August 2021, the California Supreme Court in McHugh v. Protective Life , a matter involving another insurer, determined that the statutory notice requirements apply to life insurance policies issued before the statutes’ effective date. The Company asserts various defenses to plaintiffs’ claims and to class certification. On July 24, 2024, the Department of Justice filed a civil suit in the U.S. District Court for the Western District of Pennsylvania against National General Holdings Corp., National General Insurance Company, National General Lender Services, Inc. and Newport Management Corp. The suit alleges that certain services that National General provided as a vendor to a large national bank for its collateral protection insurance program violated the Financial Institutions, Reform, Recovery, and Enforcement Act of 1989 (the “Act”), and it seeks civil monetary penalties available under the Act. The Company is subject to lawsuits related to the collection and use of driving behavior data, including a civil lawsuit filed by the Texas Attorney General in Montgomery County, Texas District Court and putative class actions filed in federal court. The lawsuits allege privacy and consumer protection claims and seek actual, statutory and punitive damages, restitution, injunctive relief and attorneys’ fees. The Company is defending a class action lawsuit in the U.S. District Court for the Central District of California, Canchola, et al v. Allstate Insurance Company , filed March 2023. Plaintiffs generally allege that Allstate owes them business expenses incurred in their operation of Allstate Exclusive Agencies under the California Labor Code because they were misclassified as independent contractors. The Company continues to defend the litigation and oppose plaintiffs’ allegations. The Company is currently defending litigation relating to the non-payment of trust preferred securities (“TruPS”), Alesco Preferred Funding VIII, Ltd., et al. v. ACP Re, Ltd., et al. and Preferred Term Securities XXV, Ltd., et al. v ACP Re, Ltd., et al. Plaintiffs are the holders of TruPS that were issued by companies subsequently acquired by a former National General affiliate. Plaintiffs filed this lawsuit against National General and several other defendants, alleging that they are successors to the TruPS issuers and are responsible for repayment of the principal and interest owed under the TruPS. Plaintiffs assert claims of breach of contract, tortious interference with contract and fraud against all defendants. The Company denies all allegations and continues to defend plaintiffs’ claims. 40 www.allstate.com Notes to Condensed Consolidated Financial Statements Note 13 Benefit Plans Components of net cost (benefit) for pension and other postretirement plans Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Pension benefits Service cost (1) $ 28 $ 26 $ 79 $ 52 Interest cost 58 59 177 175 Expected return on plan assets ( 77 ) ( 74 ) ( 233 ) ( 227 ) Costs and expenses 9 11 23 — Remeasurement of projected benefit obligation 20 233 128 140 Remeasurement of plan assets ( 127 ) ( 214 ) ( 158 ) ( 129 ) Remeasurement (gains) losses ( 107 ) 19 ( 30 ) 11 Pension net (benefit) cost $ ( 98 ) $ 30 $ ( 7 ) $ 11 Postretirement benefits Service cost $ — $ — $ — $ — Interest cost 2 2 6 7 Amortization of prior service credit ( 1 ) — ( 1 ) ( 1 ) Costs and expenses 1 2 5 6 Remeasurement of benefit obligation ( 1 ) 7 — 4 Remeasurement of plan assets — — — — Remeasurement (gains) losses ( 1 ) 7 — 4 Postretirement net cost $ — $ 9 $ 5 $ 10 Pension and postretirement benefits Costs and expenses $ 10 $ 13 $ 28 $ 6 Remeasurement (gains) losses ( 108 ) 26 ( 30 ) 15 Total net (benefit) cost $ ( 98 ) $ 39 $ ( 2 ) $ 21 (1) For the first nine months of 2024, service cost includes a $ 38 million refund of premiums previously paid to the Pension Benefit Guaranty Corporation. Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses. Differences between expected and actual returns on plan assets affect remeasurement (gains) losses. Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations. Pension and postretirement benefits remeasurement gains and losses Three months ended September 30, Nine months ended September 30, ($ in millions) 2025 2024 2025 2024 Remeasurement of benefit obligation (gains) losses: Discount rate $ 29 $ 213 $ 93 $ 115 Other assumptions ( 10 ) 27 35 29 Remeasurement of plan assets (gains) losses ( 127 ) ( 214 ) ( 158 ) ( 129 ) Remeasurement (gains) losses $ ( 108 ) $ 26 $ ( 30 ) $ 15 Remeasurement gains of $ 108 million for the third quarter of 2025 are primarily related to favorable asset performance compared to expected return on plan assets and changes in actuarial assumptions, partially offset by a decrease in the liability discount rate. Remeasurement gains of $ 30 million in the first nine months of 2025 are primarily related to favorable asset performance compared to expected return on plan assets, partially offset by a decrease in the liability discount rate and changes in actuarial assumptions. The weighted average discount rate used to measure the pension benefit obligation decreased to 5.44 % on September 30, 2025 compared to 5.51 % on June 30, 2025 and 5.71 % at December 31, 2024 resulting in losses for the third quarter and first nine months of 2025. For the third quarter of 2025, the actual return on plan assets was higher than the expected return due to higher public equity valuations and higher fixed income valuations driven by lower rates and tighter Third Quarter 2025 Form 10-Q 41 Notes to Condensed Consolidated Financial Statements credit spreads. For the first nine months of 2025, the actual return on plan assets was higher than the expected return due to higher public equity valuations and higher fixed income valuations driven by lower rates and tighter credit spreads, partially offset by lower performance-based equity valuations. The Company made a discretionary contribution of $ 35 million to the qualified pension plan in September 2025. Note 14 Supplemental Cash Flow Information Non-cash investing activities include $ 44 million and $ 70 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, commercial mortgages and limited partnerships for the nine months ended September 30, 2025 and 2024, respectively. Non-cash investing activities include $ 1 million and $ 19 million related to right-of-use property and equipment obtained in exchange for lease obligations for the nine months ended September 30, 2025 and 2024, respectively. Non-cash investing activities include $ 1 million related to right-of-use real estate obtained in exchange for lease obligations for the nine months ended September 30, 2024. Non-cash financing activities include $ 26 million and $ 28 million related to the issuance of Allstate common shares for vested equity awards for the nine months ended September 30, 2025 and 2024, respectively. Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $ 80 million and $ 86 million for the nine months ended September 30, 2025 and 2024, respectively. Non-cash operating activities include $ 45 million and $ 50 million related to right-of-use assets obtained in exchange for lease obligations for the nine months ended September 30, 2025 and 2024, respectively. Liabilities for collateral received in conjunction with the Company’s securities lending program and OTC and cleared derivatives are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows: ($ in millions) Nine months ended September 30, 2025 2024 Cash flows from operating activities Net change in proceeds managed Net change in fixed income securities $ ( 99 ) $ 45 Net change in short-term investments 282 ( 175 ) Operating cash flow provided (used) 183 ( 130 ) Net change in cash ( 1 ) — Net change in proceeds managed $ 182 $ ( 130 ) Net change in liabilities Liabilities for collateral, beginning of period $ ( 2,041 ) $ ( 1,891 ) Liabilities for collateral, end of period ( 1,859 ) ( 2,021 ) Operating cash flow (used) provided $ ( 182 ) $ 130 42 www.allstate.com Notes to Condensed Consolidated Financial Statements Note 15 Other Comprehensive Income (Loss) Components of other comprehensive income (loss) on a pre-tax and after-tax basis ($ in millions) Three months ended September 30, 2025 2024 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ 482 $ ( 105 ) $ 377 $ 1,753 $ ( 388 ) $ 1,365 Less: reclassification adjustment of realized capital gains and losses 79 ( 17 ) 62 83 ( 17 ) 66 Unrealized net capital gains and losses 403 ( 88 ) 315 1,670 ( 371 ) 1,299 Unrealized foreign currency translation adjustments 51 ( 11 ) 40 18 ( 4 ) 14 Unamortized pension and other postretirement prior service credit (1) ( 1 ) — ( 1 ) — — — Discount rate for reserve for future policy benefits 1 — 1 ( 46 ) 10 ( 36 ) Other comprehensive income (loss) $ 454 $ ( 99 ) $ 355 $ 1,642 $ ( 365 ) $ 1,277 Nine months ended September 30, 2025 2024 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ 1,049 $ ( 230 ) $ 819 $ 1,118 $ ( 253 ) $ 865 Less: reclassification adjustment of realized capital gains and losses ( 383 ) 80 ( 303 ) ( 126 ) 26 ( 100 ) Unrealized net capital gains and losses 1,432 ( 310 ) 1,122 1,244 ( 279 ) 965 Unrealized foreign currency translation adjustments 100 ( 21 ) 79 ( 1 ) — ( 1 ) Unamortized pension and other postretirement prior service credit (1) ( 1 ) — ( 1 ) ( 2 ) 1 ( 1 ) Discount rate for reserve for future policy benefits ( 17 ) 4 ( 13 ) ( 15 ) 3 ( 12 ) Other comprehensive income (loss) $ 1,514 $ ( 327 ) $ 1,187 $ 1,226 $ ( 275 ) $ 951 (1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses. Third Quarter 2025 Form 10-Q 43 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of The Allstate Corporation Results of Review of Interim Financial Information We have reviewed the accompanying condensed consolidated statement of financial position of The Allstate Corporation and subsidiaries (the “Company”) as of September 30, 2025, the related condensed consolidated statements of operations, comprehensive income (loss) and shareholders’ equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the “interim financial information”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Company as of December 31, 2024, and the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated February 24, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ Deloitte & Touche LLP Chicago, Illinois November 5, 2025 44 www.allstate.com