ALLSTATE CORP 10-K

Item 8. Financial Statements and Supplementary Data Consolidated Financial Statements Page Consolidated Statements of Operations 87 Consolidated Statements of Comprehensive Income (Loss) 88 Consolidated Statements of Financial Position 89 Consolidated Statements of Shareholders’ Equity 90 Consolidated Statements of Cash Flows 91 Notes to Consolidated Financial Statements Note 1 General 92 Note 2 Summary of Significant Accounting Policies 92 Note 3 Earnings per Common Share 101 Note 4 Dispositions 101 Note 5 Reportable Segments 103 Note 6 Investments 108 Note 7 Fair Value of Assets and Liabilities 117 Note 8 Derivative Financial Instruments and Off-balance Sheet Financial Instruments 125 Note 9 Variable Interest Entities 130 Note 10 Reserve for Property and Casualty Insurance Claims and Claims Expense 131 Note 11 Reinsurance and Indemnification 139 Note 12 Capital Structure 144 Note 13 Company Restructuring 146 Note 14 Commitments, Guarantees and Contingent Liabilities 147 Note 15 Income Taxes 153 Note 16 Statutory Financial Information and Dividend Limitations 157 Note 17 Benefit Plans 158 Note 18 Equity Incentive Plans 164 Note 19 Supplemental Cash Flow Information 166 Note 20 Other Comprehensive Income (Loss) 167 Note 21 Quarterly Results (unaudited) 167 Report of Independent Registered Public Accounting Firm (Deloitte and Touche LLP: PCAOB ID No. 34 ) 168 86 www.allstate.com 2025 Form 10-K Financial Statements The Allstate Corporation and Subsidiaries Consolidated Statements of Operations Years Ended December 31, (In millions, except per share data) 2025 2024 2023 Revenues Property and casualty insurance premiums $ 60,503 $ 56,388 $ 50,670 Accident and health insurance premiums and contract charges 946 1,921 1,846 Other revenue 2,955 2,930 2,400 Net investment income 3,449 3,092 2,478 Net gains (losses) on investments and derivatives ( 168 ) ( 225 ) ( 300 ) Total revenues 67,685 64,106 57,094 Costs and expenses Property and casualty insurance claims and claims expense 37,454 39,735 41,070 Accident, health and other policy benefits 656 1,241 1,071 Amortization of deferred policy acquisition costs 8,389 8,039 7,278 Operating costs and expenses 8,977 8,626 7,137 Pension and other postretirement remeasurement (gains) losses ( 35 ) ( 37 ) 9 Restructuring and related charges 61 61 169 Amortization of purchased intangibles 231 280 329 Interest expense 399 400 379 Total costs and expenses 56,132 58,345 57,442 Gain on disposition of operations 1,603 — — Income (loss) from operations before income taxes 13,156 5,761 ( 348 ) Income tax expense (benefit) 2,890 1,162 ( 135 ) Net income (loss) 10,266 4,599 ( 213 ) Less: Net loss attributable to noncontrolling interest ( 16 ) ( 68 ) ( 25 ) Net income (loss) attributable to Allstate 10,282 4,667 ( 188 ) Less: Preferred stock dividends 117 117 128 Net income (loss) applicable to common shareholders $ 10,165 $ 4,550 $ ( 316 ) Earnings per common share: Net income (loss) applicable to common shareholders per common share - Basic $ 38.56 $ 17.22 $ ( 1.20 ) Weighted average common shares - Basic 263.6 264.3 262.5 Net income (loss) applicable to common shareholders per common share - Diluted $ 38.06 $ 16.99 $ ( 1.20 ) Weighted average common shares - Diluted 267.1 267.8 262.5 See notes to consolidated financial statements. The Allstate Corporation 87 2025 Form 10-K Financial Statements The Allstate Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (Loss) Years Ended December 31, ($ in millions) 2025 2024 2023 Net income (loss) $ 10,266 $ 4,599 $ ( 213 ) Other comprehensive income (loss), after-tax Changes in: Unrealized net capital gains and losses 1,068 ( 167 ) 1,651 Unrealized foreign currency translation adjustments 90 ( 47 ) 67 Unamortized pension and other postretirement prior service credit — ( 2 ) ( 16 ) Discount rate for reserve for future policy benefits ( 14 ) 27 ( 10 ) Other comprehensive income (loss), after-tax 1,144 ( 189 ) 1,692 Comprehensive income 11,410 4,410 1,479 Less: Comprehensive loss attributable to noncontrolling interest ( 13 ) ( 58 ) ( 15 ) Comprehensive income attributable to Allstate $ 11,423 $ 4,468 $ 1,494 See notes to consolidated financial statements. 88 www.allstate.com 2025 Form 10-K Financial Statements The Allstate Corporation and Subsidiaries Consolidated Statements of Financial Position December 31, ($ in millions, except par value data) 2025 2024 Assets Investments Fixed income securities, at fair value (amortized cost, net $ 58,730 and $ 53,616 ) $ 59,115 $ 52,747 Equity securities, at fair value (cost $ 8,026 and $ 4,329 ) 8,398 4,463 Mortgage loans, net 879 784 Limited partnership interests 8,844 9,255 Short-term, at fair value (amortized cost $ 4,888 and $ 4,539 ) 4,887 4,537 Other investments, net 1,114 824 Total investments 83,237 72,610 Cash 678 704 Premium installment receivables, net 11,474 10,614 Deferred policy acquisition costs 6,163 5,773 Reinsurance and indemnification recoverables, net 8,501 8,924 Accrued investment income 708 615 Deferred income taxes — 231 Property and equipment, net 627 669 Goodwill 3,118 3,245 Other assets, net 5,252 5,140 Assets held for sale — 3,092 Total assets 119,758 111,617 Liabilities Reserve for property and casualty insurance claims and claims expense 41,079 41,917 Unearned premiums 29,080 26,909 Claim payments outstanding 1,419 1,567 Deferred income taxes 227 — Other liabilities and accrued expenses 9,874 9,659 Debt 7,490 8,085 Liabilities held for sale — 2,113 Total liabilities 89,169 90,250 Commitments and Contingent Liabilities (Note 8, 10 and 14) 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, 260 million and 265 million shares outstanding 9 9 Additional capital paid-in 4,158 4,029 Retained income 62,393 53,288 Treasury stock, at cost ( 640 million and 635 million shares) ( 38,206 ) ( 36,996 ) Accumulated other comprehensive income (loss): Unrealized net capital gains and losses 297 ( 771 ) Unrealized foreign currency translation adjustments ( 55 ) ( 145 ) Unamortized pension and other postretirement prior service credit 11 11 Discount rate for reserve for future policy benefits 2 16 Total accumulated other comprehensive income (loss) 255 ( 889 ) Total Allstate shareholders’ equity 30,610 21,442 Noncontrolling interest ( 21 ) ( 75 ) Total equity 30,589 21,367 Total liabilities and equity $ 119,758 $ 111,617 See notes to consolidated financial statements. The Allstate Corporation 89 2025 Form 10-K Financial Statements The Allstate Corporation and Subsidiaries Consolidated Statements of Shareholders’ Equity Years Ended December 31, ($ in millions, except per share data) 2025 2024 2023 Preferred stock par value $ — $ — $ — Preferred stock additional capital paid-in Balance, beginning of year 2,001 2,001 1,970 Preferred stock issuance, net of issuance costs — — 587 Preferred stock redemption — — ( 556 ) Balance, end of year 2,001 2,001 2,001 Common stock par value 9 9 9 Common stock additional capital paid-in Balance, beginning of year 4,029 3,854 3,788 Equity incentive plans activity, net 129 175 66 Balance, end of year 4,158 4,029 3,854 Retained income Balance, beginning of year 53,288 49,716 50,970 Net income (loss) 10,282 4,667 ( 188 ) Dividends on common stock (declared per share of $ 4.00 , $ 3.68 and $ 3.56 ) ( 1,060 ) ( 978 ) ( 938 ) Dividends on preferred stock ( 117 ) ( 117 ) ( 128 ) Balance, end of year 62,393 53,288 49,716 Treasury stock Balance, beginning of year ( 36,996 ) ( 37,110 ) ( 36,857 ) Shares acquired ( 1,251 ) — ( 332 ) Shares reissued under equity incentive plans, net 41 114 79 Balance, end of year ( 38,206 ) ( 36,996 ) ( 37,110 ) Accumulated other comprehensive income (loss) Balance, beginning of year ( 889 ) ( 700 ) ( 2,392 ) Change in unrealized net capital gains and losses 1,068 ( 167 ) 1,651 Change in unrealized foreign currency translation adjustments 90 ( 47 ) 67 Change in unamortized pension and other postretirement prior service credit — ( 2 ) ( 16 ) Change in discount rate for reserve for future policy benefits ( 14 ) 27 ( 10 ) Balance, end of year 255 ( 889 ) ( 700 ) Total Allstate shareholders’ equity 30,610 21,442 17,770 Noncontrolling interest Balance, beginning of year ( 75 ) ( 140 ) ( 125 ) Change in unrealized net capital gains and losses 3 10 10 Noncontrolling loss ( 16 ) ( 68 ) ( 25 ) Capital transaction for noncontrolling interest 67 123 — Balance, end of year ( 21 ) ( 75 ) ( 140 ) Total equity $ 30,589 $ 21,367 $ 17,630 See notes to consolidated financial statements. 90 www.allstate.com 2025 Form 10-K Financial Statements The Allstate Corporation and Subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, ($ in millions) 2025 2024 2023 Cash flows from operating activities Net income (loss) $ 10,266 $ 4,599 $ ( 213 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amortization and other non-cash items 482 555 704 Net (gains) losses on investments and derivatives 168 225 300 Pension and other postretirement remeasurement (gains) losses ( 35 ) ( 37 ) 9 Gain on disposition of operations ( 1,603 ) — — Changes in: Claims and claims expense and other insurance reserves ( 943 ) 2,171 2,202 Unearned premiums 2,120 2,294 2,385 Deferred policy acquisition costs ( 365 ) ( 347 ) ( 489 ) Premium installment receivables, net ( 831 ) ( 705 ) ( 861 ) Reinsurance and indemnification recoverables, net 630 ( 226 ) 807 Income taxes 583 753 ( 229 ) Other operating assets and liabilities ( 362 ) ( 351 ) ( 387 ) Net cash provided by operating activities 10,110 8,931 4,228 Cash flows from investing activities Proceeds from sales Fixed income securities 72,897 38,751 22,973 Equity securities 6,729 3,168 5,400 Limited partnership interests 1,357 633 710 Other investments 243 265 594 Investment collections Fixed income securities 814 1,509 1,641 Mortgage loans 127 151 81 Other investments 55 41 152 Investment purchases Fixed income securities ( 78,784 ) ( 46,590 ) ( 29,431 ) Equity securities ( 10,595 ) ( 4,980 ) ( 2,935 ) Limited partnership interests ( 1,269 ) ( 1,434 ) ( 890 ) Mortgage loans ( 242 ) ( 113 ) ( 145 ) Other investments ( 609 ) ( 172 ) ( 292 ) Change in short-term and other investments, net ( 791 ) 724 ( 617 ) Purchases of property and equipment, net ( 228 ) ( 210 ) ( 267 ) Proceeds from sale of property and equipment — 18 27 Acquisition of operations, net of cash acquired — ( 13 ) — Proceeds from disposition of operations, net of cash transferred 3,041 — — Net cash used in investing activities ( 7,255 ) ( 8,252 ) ( 2,999 ) Cash flows from financing activities Proceeds from issuance of debt — 495 743 Redemption and repayment of debt ( 600 ) ( 350 ) ( 750 ) Proceeds from issuance of preferred stock — — 587 Redemption of preferred stock — — ( 575 ) Contractholder fund deposits 30 129 130 Contractholder fund withdrawals ( 15 ) ( 37 ) ( 35 ) Dividends paid on common stock ( 1,036 ) ( 962 ) ( 925 ) Dividends paid on preferred stock ( 117 ) ( 117 ) ( 107 ) Treasury stock purchases ( 1,233 ) ( 2 ) ( 335 ) Shares reissued under equity incentive plans, net 48 163 73 Other 42 ( 16 ) ( 49 ) Net cash used in financing activities ( 2,881 ) ( 697 ) ( 1,243 ) Net decrease in cash ( 26 ) ( 18 ) ( 14 ) Cash at beginning of period 704 722 736 Cash at end of period $ 678 $ 704 $ 722 See notes to consolidated financial statements. The Allstate Corporation 91 2025 Form 10-K Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements Note 1 General Basis of presentation The accompanying 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 consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated. Certain amounts have been reclassified to conform to current year presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Nature of operations Allstate is engaged, principally in the United States, in the property and casualty insurance business. Allstate is one of the country’s largest personal property and casualty insurers and is organized into four reportable segments: Allstate Protection, Run-off Property-Liability, Protection Services and Corporate. Allstate’s primary business is the sale of private passenger auto and homeowners insurance. The Company offers several other personal property and casualty insurance products, select commercial property and casualty coverages, consumer product protection plans, mobility intelligence services and analytic solutions using automotive telematics information, roadside assistance, automotive protection and insurance products, identity protection and individual accident and health insurance. Allstate primarily distributes its products through exclusive agents, independent agents and brokers, direct to consumers through contact centers and online and major retailers. Risks and uncertainties Allstate has exposure to catastrophic events, including wind/hail, tornadoes, severe freeze events, hurricanes, tropical storms, wildfires, earthquakes, tsunamis, volcanic eruptions, terrorism and industrial accidents. Catastrophes, an inherent risk of the property and casualty insurance business, have contributed, and will continue to contribute, to material year-to-year fluctuations in the Company’s results of operations and financial position (see Note 10). The nature and level of catastrophic loss experienced in any period cannot be predicted and could be material to results of operations and financial position. The Company considers the following categories and locations to be the greatest areas of potential catastrophe losses: • Severe convective storms and freeze — Major metropolitan centers in Colorado, Georgia, Illinois, Oklahoma and Texas • Hurricanes — Major metropolitan centers along the eastern and gulf coasts of the United States • Wildfires — California, Colorado, Oregon and Texas • Earthquakes and fires following earthquakes —Major metropolitan centers near fault lines in the states of California, Kentucky, Oregon, South Carolina and Washington Note 2 Summary of Significant Accounting Policies Investments Fixed income securities include bonds, asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”). Fixed income securities, which may be sold prior to their contractual maturity, are designated as available-for-sale (“AFS”) and are carried at fair value. The difference between amortized cost, net of credit loss allowances (“amortized cost, net”) and fair value, net of deferred income taxes, is reflected as a component of accumulated other comprehensive income (“AOCI”). The Company excludes accrued interest receivable from the amortized cost basis of its AFS fixed income securities. Cash received from calls and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Consolidated Statements of Cash Flows. Equity securities primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments. Equity securities are carried at fair value. Equity securities without readily determinable or estimable fair values are measured using the measurement alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. Equity securities where the Company has significant influence are accounted for in accordance with the equity method of accounting ("EMA"). 92 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Mortgage loans and bank loans, included in other investments, are carried at amortized cost, net, which represent the amount expected to be collected. The Company excludes accrued interest receivable from the amortized cost basis of its mortgage and bank loans. Credit loss allowances are estimates of expected credit losses, established for loans upon origination or purchase, and are established considering all relevant information available, including past events, current conditions, and reasonable and supportable forecasts over the life of the loans. Loans are evaluated on a pooled basis when they share similar risk characteristics; otherwise, they are evaluated individually. Investments in limited partnership interests are primarily accounted for in accordance with the EMA and include interests in private equity funds, real estate funds and other funds. Investments in limited partnership interests purchased prior to January 1, 2018, where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, are accounted for at fair value primarily utilizing the net asset value (“NAV”) as a practical expedient to determine fair value. 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. Real estate, included in other investments, is carried at cost less accumulated depreciation. Investment income primarily consists of interest, dividends, income from limited partnership interests and rental income from real estate. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for ABS and MBS is determined considering estimated pay-downs, including prepayments, obtained from third-party data sources and internal estimates. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS and MBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is generally recalculated on a prospective basis. Accrual of income is suspended for fixed income securities when the timing and amount of cash flows expected to be received is not probable. Accrual of income is suspended for mortgage loans and bank 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 within net investment income. Cash receipts for investments on nonaccrual status are generally recorded as a reduction of amortized cost. Income from limited partnership interests carried at fair value is recognized based upon the changes in fair value of the investee’s equity primarily determined using NAV. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ earnings. Income from EMA limited partnership interests is generally recognized on a three month delay due to the availability of the related financial statements from investees. Net gains and losses on investments and derivatives include gains and losses on investment sales, changes in the credit loss allowances related to fixed income securities, mortgage loans and bank loans, impairments, valuation changes of equity investments, including equity securities and certain limited partnerships where the underlying assets are predominately public equity securities, and periodic changes in fair value and settlements of certain derivatives, including hedge ineffectiveness. Net gains and losses on sales of investments and derivatives are determined on a specific identification basis and are net of credit losses already recognized through an allowance. Derivative and embedded derivative financial instruments Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate and equity), options (including swaptions), warrants and stock rights, foreign currency forwards and total return swaps. All derivatives are accounted for on a fair value basis and reported as other investments, other assets and other liabilities and accrued expenses. Embedded derivative instruments subject to bifurcation are also accounted for on a fair value basis and are reported together with the host contract. Cash flows from other derivatives are reported in cash flows from investing activities within the Consolidated Statements of Cash Flows. The income statement impacts for derivatives, including fair value gains and losses and accrued periodic settlements, are reported either in net gains and losses on investments and derivatives or in a single line item together with the results of the associated asset or liability for which risks are being managed. Securities loaned The Company’s business activities include securities lending transactions, which are used primarily to generate net investment income. The proceeds received in conjunction with securities lending transactions can be reinvested in short-term investments or fixed income securities. These transactions are short-term in nature, usually 30 days or less. The Company receives cash collateral for securities loaned in an amount generally equal to 102 % and 105 % of the fair value of domestic and foreign securities, respectively, and records the related obligations to return the collateral in other liabilities and accrued expenses. The carrying value of these obligations approximates fair value because of their relatively The Allstate Corporation 93 2025 Form 10-K Notes to Consolidated Financial Statements short-term nature. The Company monitors the market value of securities loaned on a daily basis and obtains additional collateral as necessary under the terms of the agreements to mitigate counterparty credit risk. The Company maintains the right and ability to repossess the securities loaned on short notice. Recognition of premium revenues and related benefits Property and casualty insurance premiums include premiums from personal lines policies, protection plans, vehicle service contracts and insurance products and roadside assistance. Personal lines insurance premiums are deferred and earned on a pro-rata basis over the terms of the policies, typically periods of six or twelve months . Revenues related to protection plans, vehicle service contracts and insurance products and roadside assistance are deferred and earned over the term of the contract in a manner that recognizes revenue as obligations under the contracts are fulfilled. Revenues from these products are classified as premiums as the products are backed by insurance. Premiums from protection plans, vehicle service contracts and insurance products are recognized using a cost-based incurrence method over the term of the contracts, which is generally one to five years . The portion of premiums written applicable to the unexpired terms of the policies is recorded as unearned premiums. Unearned premiums December 31, ($ in millions) 2025 2024 Allstate Protection $ 23,464 $ 21,508 Protection Services 5,605 5,385 Allstate Health and Benefits — 2 All other 11 14 Total $ 29,080 $ 26,909 For the years ended December 31, 2025 and 2024, the Company recognized $ 1.97 billion and $ 1.84 billion of property and casualty insurance premiums for Protection Services, respectively, that were included in the unearned premium balance as of December 31, 2024 and 2023, respectively. The Company expects to recognize approximately $ 2.06 billion, $ 1.52 billion and $ 2.03 billion of the December 31, 2025 unearned premium balance for Protection Services in 2026, 2027 and thereafter, respectively. Accident and health insurance premiums include premiums from accident and health insurance products that are primarily expected to remain in force for an extended period and are classified as long-duration contracts. Premiums from these products are recognized as revenue when due from policyholders, net of any credit loss allowance for uncollectible premiums. Benefits are reflected in accident, health and other policy benefits and recognized as incurred. Premium installment receivables represent premiums written and not yet collected, net of the credit loss allowance for uncollectible premiums. These receivables are primarily outstanding for one year or less. The Company utilizes historical internal data including aging analyses to estimate allowances under current business conditions and for the forecast period. The Company regularly evaluates and updates the data and adjusts its allowance as appropriate. Rollforward of credit loss allowance for premium installment receivables For the years ended December 31, ($ in millions) 2025 2024 Beginning balance $ ( 187 ) $ ( 138 ) Increase in the provision for credit losses ( 487 ) ( 414 ) Write-off of uncollectible premium installment receivable amounts 485 365 Ending balance $ ( 189 ) $ ( 187 ) Other revenue Other revenue represents fees collected from policyholders relating to premium installment payments, fees for servicing assigned risk business collected from other insurance carriers, commissions on sales of non-proprietary products, sales of identity protection services, fee-based services and other revenue transactions. Other revenue is recognized when performance obligations are fulfilled. The Company collects service fees in the form of commissions by selling accident and health policies issued by third-party insurance companies and recognizes commission revenues equal to the estimated lifetime value of the revenues at the time when the policy is sold, net of an allowance for estimated policy cancellations, as no further performance obligations exist. The allowance for estimated third-party cancellations is periodically evaluated and adjusted as necessary. Deferred policy acquisition costs For personal lines, deferred policy acquisition costs (“DAC”) are related directly to the successful acquisition of new or renewal insurance contracts and are deferred and recognized as an expense over the life of the related contracts. These costs are principally agent, employee and broker remuneration, and premium taxes. DAC is amortized into income as premiums are earned pro rata over the period of the policy and is periodically reviewed for recoverability and adjusted if necessary. Future investment income is considered in determining the recoverability of DAC. For protection plans and vehicle service contracts, DAC is directly related to costs to obtain customer contracts when they are incremental and directly attributable to securing the contract. These costs include sales commissions and other direct incentives. DAC is amortized systematically over the expected benefit period, consistent with the pattern of service delivery and is periodically reviewed for recoverability. If the expected future economic benefits associated 94 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements with the related contracts are no longer sufficient to recover the carrying amount, the asset is impaired and written down to its recoverable amount. DAC amortization is included in amortization of deferred policy acquisition costs on the Consolidated Statements of Operations. All other acquisition costs are expensed as incurred and included in operating costs and expenses. Rollforward of deferred policy acquisition costs For the years ended December 31, ($ in millions) 2025 2024 2023 Beginning balance $ 5,773 $ 5,940 $ 5,442 Acquisition costs deferred 8,784 8,393 7,776 Amortization charged to income ( 8,384 ) ( 8,022 ) ( 7,246 ) Experience adjustment ( 5 ) ( 17 ) ( 32 ) Reclassified to assets held for sale (1) ( 5 ) ( 521 ) — Ending balance $ 6,163 $ 5,773 $ 5,940 Allstate Protection $ 2,803 $ 2,548 $ 2,378 Protection Services 3,274 3,161 3,022 Allstate Health and Benefits — 1 497 All other 86 63 43 Total $ 6,163 $ 5,773 $ 5,940 (1) Sold on April 1, 2025 as part of the employer voluntary benefits disposition. Reinsurance and indemnification Reinsurance In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to affect the disposition of certain blocks of business. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, in addition to establishing allowances as appropriate after evaluating reinsurers’ activities related to claims settlement practices and commutations, the Company evaluates reinsurer counterparty credit risk and records reinsurance recoverables net of credit loss allowances. The Company assesses counterparty credit risk for individual reinsurers separately when more relevant or on a pooled basis when shared risk characteristics exist. The evaluation considers the credit quality of the reinsurer and the period over which the recoverable balances are expected to be collected. The Company considers factors including past events, current conditions and reasonable and supportable forecasts in the development of the estimate of credit loss allowances. Allowances for reinsurance recoverables are established primarily through risk-based evaluations. The recoverable evaluation considers the credit rating of the reinsurer, the period over which the reinsurance recoverable balances are expected to be recovered and other relevant factors including historical experience of reinsurer failures. Reinsurers in liquidation or in default status are evaluated individually using the Company’s historical liquidation recovery assumptions and any other relevant information available including the most recent public information related to the financial condition or liquidation status of the reinsurer. The Company monitors the credit ratings of reinsurer counterparties and evaluates the circumstances surrounding credit rating changes as inputs into its credit loss assessments. Uncollectible reinsurance recoverable balances are written off against the allowances when there is no reasonable expectation of recovery. The changes in the allowances are reported in property and casualty insurance claims and claims expense. Indemnification The Company also participates in various indemnification programs, including industry pools and facilities, which are reimbursement mechanisms that assess participating insurers for expected insured claims, reimburse participating insurers for qualifying paid claims and permit participating insurers to recoup amounts assessed directly from insureds. Indemnification recoverables are backed by the financial resources of the property and casualty insurance company market participants. The design and function of these indemnification programs does not result in the retention of insurance or reinsurance risk by the indemnitee. Based on the Company’s evaluation of these programs on an individual basis, the establishment of credit loss allowances is not warranted at this time. The Company has not experienced any historical credit losses related to its indemnification programs. The Company continues to monitor these programs to determine whether any changes from historical experience have emerged or are expected to emerge or whether there have been any changes in the design or administration of the programs that would require establishment of credit loss allowances. Revenue recognition The amounts reported as reinsurance and indemnification recoverables include amounts paid and due from reinsurers and indemnitors The Allstate Corporation 95 2025 Form 10-K Notes to Consolidated Financial Statements as well as estimates of amounts expected to be recovered from reinsurers and indemnitors on insurance liabilities that have been incurred but not yet paid. Reinsurance and indemnification recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying contract. Reinsurance and indemnification premiums are generally reflected in income in a manner consistent with the recognition of premiums on the associated contracts. For catastrophe coverage, the cost of reinsurance premiums is recognized ratably over the contract period to the extent coverage remains available. Held for sale A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value and certain other criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the proceeds expected to be received from the sale exceed the carrying amount of the business, a gain is recognized when the sale closes. Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Statements of Financial Position in the period in which the business is classified as held for sale. Goodwill Goodwill represents the excess of amounts paid for acquiring businesses over the fair value of the net assets acquired, less any impairment of goodwill recognized. Goodwill is recognized when acquired and allocated to reporting units based on which unit is expected to benefit from the synergies of the business combination. Goodwill is not amortized but is tested for impairment at least annually. The Company performs its annual goodwill impairment testing during the fourth quarter of each year based upon data as of the close of the third quarter. Goodwill impairment is measured and recognized as the amount by which a reporting unit’s carrying value, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The Company also reviews goodwill for impairment whenever events or changes in circumstances, such as deteriorating or adverse market conditions, indicate that it is more likely than not that the carrying amount of the reporting unit including goodwill may exceed the fair value of the reporting unit. The goodwill impairment analysis is performed at the reporting unit level. As of December 31, 2025, t he Company tests goodwill at its reporting units, Allstate Protection, Protection Services and Individual Health. Goodwill by reporting unit December 31, ($ in millions) 2025 2024 Allstate Protection $ 1,563 $ 1,563 Protection Services 1,511 1,511 Allstate Health and Benefits and Individual Health (1) 44 171 Total $ 3,118 $ 3,245 (1) Employer voluntary benefits and group health businesses comprising Allstate Health and Benefits were sold in 2025. In conjunction with the dispositions of the employer voluntary benefits (“EVB”) and group health businesses, goodwill that was previously included in the Health and Benefits reporting unit was reallocated to EVB and group health businesses disposed of during 2025 and the retained individual health non-reportable segment using a relative fair value approach. Goodwill impairment tests were performed for the Individual Health reporting unit throughout 2025, which did not result in an impairment. As of December 31, 2025 and 2024, the fair value of the Company’s goodwill reporting units exceeded their carrying values. Intangible assets Intangible assets (reported in other assets) consist of capitalized costs primarily related to acquired distribution and customer relationships, trade names and licenses, technology and other assets. The estimated useful lives of distribution, customer relationships and technology and other intangible assets are generally 5 years, 10 years, and 3 years, respectively. Intangible assets are carried at cost less accumulated amortization. Intangible assets by type December 31, ($ in millions) 2025 2024 Distribution and customer relationships $ 214 $ 367 Trade names and licenses (1) 126 145 Technology and other 218 242 Total $ 558 $ 754 (1) Includes finite-lived trade names with carrying values of $ 7 million as of December 31, 2024 that were fully amortized at the end of 2025. Amortization expense is calculated using an accelerated amortization method. Amortization expense on intangible assets was $ 231 million, $ 280 million and $ 329 million in 2025, 2024 and 2023, respectively. 96 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Amortization expense of intangible assets for the next five years and thereafter ($ in millions) 2026 $ 172 2027 125 2028 83 2029 38 2030 14 Total amortization $ 432 Accumulated amortization of intangible assets was $ 1.83 billion and $ 1.66 billion as of December 31, 2025 and 2024, respectively. Trade names and licenses generally are considered to have an indefinite useful life and are reviewed for impairment at least annually or more frequent if circumstances arise that indicate an impairment may have occurred. An impairment is recognized if the carrying amount of the asset exceeds its estimated fair value. Acquisition earn-out payables The fair value of contingent consideration arrangements such as earn-out purchase arrangements at the acquisition date, are included in the purchase price consideration. The recorded purchase price for acquisitions includes an estimate of the fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in these earn-out obligations are recorded in the Consolidated Statements of Operations when incurred or reasonably estimated. Estimates of potential earn-out obligations are typically based upon future earnings of the acquired operations or entities, usually for periods up to five years. As of December 31, 2025, the maximum future contingency payments related to acquisitions totaled $ 28 million. In addition, the Company provides contingent bonus payments to certain eligible employees of acquired operations or entities based on the same timeframe and future earnings as used in determining the contingent consideration arrangement. Property and equipment Property and equipment is carried at cost less accumulated depreciation. Included in property and equipment are capitalized costs related to computer software licenses and software developed for internal use of $ 349 million and $ 398 million, net of accumulated depreciation, as of December 31, 2025 and 2024, respectively. These costs generally consist of certain external and payroll related costs. Property and equipment depreciation is calculated using the straight-line method over the estimated useful lives of the assets, generally 3 to 10 years for equipment, 3 to 5 years for computer software licenses and software developed for internal use and 40 years for real property. Depreciation expense is reported in operating costs and expenses. Accumulated depreciation on property and equipment was $ 2.34 billion and $ 2.50 billion as of December 31, 2025 and 2024, respectively. Depreciation expense on property and equipment was $ 259 million, $ 316 million and $ 343 million in 2025, 2024 and 2023, respectively. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Income taxes Income taxes are accounted for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities at the enacted tax rates. A deferred tax asset valuation allowance is established when it is more likely than not such assets will not be realized. The Company recognizes interest expense related to income tax matters in income tax expense and penalties in operating costs and expenses. Reserve for property and casualty insurance claims and claims expense The reserve for property and casualty insurance claims and claims expense is the estimate of amounts necessary to settle all reported and unreported incurred claims for the ultimate cost of insured property and casualty losses, based upon the facts of each case and the Company’s experience with similar cases. Estimated amounts of salvage and subrogation are deducted from the reserve for claims and claims expense. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserve estimates are primarily derived using an actuarial estimation process in which historical loss patterns are applied to actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an accident or report year to create an estimate of how losses are likely to develop over time. Development factors are calculated quarterly and periodically throughout the year for data elements such as claims reported and settled, paid losses, and paid losses combined with case reserves. 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. The effects of inflation are implicitly considered in the reserving process as a development factor using historic data incorporated as a reasonable estimate of future inflation. The historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims; however, when the Company experiences changes, it may lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. Also, anticipated changes in severity for sudden one-time cost level shifts, such as tariffs, are considered as part of the reserving process. Reserve estimates are regularly reviewed and updated, using the most current data and information available. Any resulting reestimates are reflected in current results of operations. The Allstate Corporation 97 2025 Form 10-K Notes to Consolidated Financial Statements Pension and other postretirement remeasurement gains and losses The Company’s policy is to remeasure its pension and postretirement plans on a quarterly basis. Pension and other postretirement gains and losses represent the remeasurement of projected benefit obligations and differences between the expected and actual return on plan assets, which are immediately recognized in earnings and are referred to as pension and other postretirement remeasurement gains and losses on the Consolidated Statements of Operations. The primary factors contributing to pension and postretirement remeasurement gains and losses are: • Changes in the discount rate used to value pension and postretirement obligations as of the measurement date • Differences between the expected and the actual return on plan assets • Changes in demographic assumptions, including mortality and participant experience • Changes in lump sum interest rates and cash balance interest crediting rates used to value pension obligations as of the measurement date Differences in actual experience and changes in other assumptions affect the Company’s pension and other postretirement obligations and expenses. Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credits are allocated to the Allstate Protection and Protection Services segments. The pension and other postretirement remeasurement gains and losses are reported in the Corporate segment. Legal contingencies The Company reviews its lawsuits, regulatory inquiries and other legal proceedings on an ongoing basis. 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’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. Equity incentive plans The Company has equity incentive plans under which it grants nonqualified stock options, restricted stock units and performance stock awards (“equity awards”) to certain employees and directors of the Company. The Company measures the fair value of equity awards at the grant date and recognizes the expense over the shorter of the period in which the requisite service is rendered or retirement eligibility is attained. The expense for performance stock awards with no market condition is adjusted each period to reflect the performance factor most likely to be achieved at the end of the performance period. The expense for performance stock awards with a market condition is based on the fair value of the awards at the grant date which incorporates the probability of achieving the market condition. In the event the market condition is not met, any previously recognized expense is not reversed. The Company uses a binomial lattice model to determine the fair value of employee stock options. The Company uses a Monte Carlo simulation model to determine the fair value of performance stock awards with a market condition. Measurement of credit losses The Company carries an allowance for expected credit losses for all financial assets measured at amortized cost on the Consolidated Statements of Financial Position. The Company considers past events, current conditions and reasonable and supportable forecasts in estimating an allowance for credit losses. The Company also carries a credit loss allowance for fixed income securities where applicable and, when amortized cost is reported, it is net of credit loss allowances. For additional information, refer to the Investments, Recognition of premium revenues and related benefits or Reinsurance and indemnification topics of this section. The Company also estimated a credit loss allowance for commitments to fund its line of credit with Adirondack Insurance Exchange (“Adirondack”), mortgage loans and bank loans unless they are unconditionally cancellable by the Company. For further details on Adirondack and mortgage loans and bank loans, see Note 9 and Note 6, respectively. 98 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Allowance for credit losses As of December 31, ($ in millions) 2025 2024 Fixed income securities $ 10 $ 17 Mortgage loans 10 12 Bank loans 17 10 Investments 37 39 Premium installment receivables 189 187 Reinsurance recoverables 54 63 Other assets 15 14 Assets 295 303 Commitments to fund line of credit, commercial mortgage loans and bank loans 15 — Liabilities 15 — Total $ 310 $ 303 Variable interest entities A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not participate in the gains and losses of the entity. The Company consolidates VIEs in which the Company is deemed the primary beneficiary. The primary beneficiary is the entity that has both (1) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE and (2) the power to direct the activities of the VIE that most significantly affect that entity’s economic performance. Foreign currency translation The local currency of the Company’s foreign subsidiaries is deemed to be the functional currency of the country in which these subsidiaries operate. The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect at the end of a reporting period for assets and liabilities and at average exchange rates during the period for results of operations. The unrealized gains and losses from the translation of the net assets are recorded as unrealized foreign currency translation adjustments and included in AOCI. Changes in unrealized foreign currency translation adjustments are included in OCI. Gains and losses from foreign currency transactions are reported in operating costs and expenses and have not been material. Adopted accounting standards 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 Consolidated Statements of Operations and Consolidated Statements of Financial Position. Income tax disclosures Effective January 1, 2025, the Company prospectively adopted the FASB guidance enhancing various aspects of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The impacts of adoption are to the Company’s annual disclosures only. See Note 15 for further details. Pending accounting standards 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 The Allstate Corporation 99 2025 Form 10-K Notes to Consolidated Financial Statements 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 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. Codification Improvements In December 2025, the FASB issued guidance introducing targeted amendments and clarifications across multiple areas. Key changes include updates to diluted earnings per share calculations when losses occur from continuing operations and there are potentially dilutive instruments, clarified guidance for treasury stock retirement methods, refinements to accounting for beneficial interests and related interest income and expanded eligibility for the proportional amortization method to all income tax credit investments. The guidance also clarifies the treatment of receivable transfers under ASC 860 and excludes certain lease receivables from enhanced credit loss disclosures. The new guidance is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods. Early adoption is permitted, and transition methods vary by topic. The Company is currently evaluating the impact of this standard on its financial statements and disclosures. 100 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Note 3 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 For the years ended December 31, (In millions, except per share data) 2025 2024 2023 Numerator: Net income (loss) $ 10,266 $ 4,599 $ ( 213 ) Less: Net loss attributable to noncontrolling interest ( 16 ) ( 68 ) ( 25 ) Net income (loss) attributable to Allstate 10,282 4,667 ( 188 ) Less: Preferred stock dividends 117 117 128 Net income (loss) applicable to common shareholders $ 10,165 $ 4,550 $ ( 316 ) Denominator: Weighted average common shares outstanding 263.6 264.3 262.5 Effect of dilutive potential common shares (1) : Stock options 2.4 2.6 — Restricted stock units (non-participating) and performance stock awards 1.1 0.9 — Weighted average common and dilutive potential common shares outstanding 267.1 267.8 262.5 Net income (loss) applicable to common shareholders per common share - Basic $ 38.56 $ 17.22 $ ( 1.20 ) Net income (loss) applicable to common shareholders per common share - Diluted (1) $ 38.06 $ 16.99 $ ( 1.20 ) Anti-dilutive options excluded from diluted earnings per common share 0.4 0.5 3.0 Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) — — 2.2 (1) As a result of the net loss reported for the year ended December 31, 2023, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. Note 4 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 year ended December 31, 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. The Allstate Corporation 101 2025 Form 10-K Notes to 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 $ 715 million or $ 499 million, after-tax for the year ended December 31, 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) 310 Total assets $ 719 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. 102 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Note 5 Reportable Segments The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”). The CODM reviews financial performance and makes decisions about the allocation of resources for the four reportable segments: Allstate Protection, Run-off Property-Liability, Protection Services and Corporate. The CODM considers each segment profit measure when making decisions regarding the allocation of resources to the segments. 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. These segments are described below and align with the Company’s key product and service offerings. The accounting policies of the reportable segments are the same as those described in Note 2. The effects of inter-segment transactions are eliminated in the consolidated results. For segment results, services provided by Protection Services to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective segments. The dispositions of the EVB and group health businesses did not qualify for discontinued operations. 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 principally offers private passenger auto, homeowners and other property insurance in the United States and Canada, with earned premiums accounting for 85.2 % of Allstate’s 2025 consolidated revenues. Allstate Protection primarily operates in the U.S. (all 50 states and the District of Columbia (“D.C.”)) and Canada. For 2025, the top geographic locations for statutory direct premiums for the Allstate Protection segment were Texas, California, Florida and New York. No other jurisdiction accounted for more than 5 % of statutory direct premiums for Allstate Protection. Revenues from external customers generated outside the United States were $ 2.20 billion, $ 2.14 billion and $ 2.06 billion in 2025, 2024 and 2023, respectively. Run-off Property-Liability includes results from property and casualty insurance coverage that primarily relates to policies written from the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other run-off lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off. Protection Services comprises Protection Plans, Roadside, Dealer Services, Identity Protection and Arity. Protection Services offers consumer product protection plans, automotive protection and insurance products (including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel and paintless dent repair protection), roadside assistance, mobility intelligence services and analytic solutions using automotive telematics information and identity theft protection and remediation services. Protection Services primarily operates in the U.S. and Canada, with Protection Plans also offering services in Europe and Asia. Revenues from external customers generated outside the United States were $ 630 million, $ 472 million and $ 346 million in 2025, 2024 and 2023, respectively. Corporate comprises holding company activities and certain non-insurance operations, including expenses associated with strategic initiatives. 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 and Allstate Health and Benefits when a reportable segment. Underwriting income (loss) is calculated as premiums earned and other revenue, less claims and claims expenses, amortization of 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. The Allstate Corporation 103 2025 Form 10-K Notes to Consolidated Financial Statements Reportable segments financial performance For the years ended December 31, ($ in millions) 2025 2024 2023 Underwriting income (loss) by segment Allstate Protection $ 8,694 $ 3,153 $ ( 2,090 ) Run-off Property-Liability ( 154 ) ( 73 ) ( 94 ) Adjusted net income (loss) by segment, after-tax Protection Services 218 217 106 Allstate Health and Benefits 43 156 195 Corporate ( 362 ) ( 426 ) ( 415 ) Reconciliation of segment performance measures to net income (loss) applicable to common shareholders Allstate Protection and Run-off Property-Liability net investment income 3,157 2,810 2,218 Net gains (losses) on investments and derivatives ( 168 ) ( 225 ) ( 300 ) Pension and other postretirement remeasurement gains (losses) 35 37 ( 9 ) Amortization of purchased intangibles (1) ( 48 ) ( 74 ) ( 94 ) Gain on disposition 1,616 16 4 All other (2) 3 30 47 Non-recurring costs (3) — — ( 90 ) Income tax (expense) benefit on Allstate Protection and Run-off Property-Liability and reconciling items (4) ( 2,884 ) ( 1,138 ) 182 Total reconciling items 1,711 1,456 1,958 Less: Net loss attributable to noncontrolling interest (5) ( 15 ) ( 67 ) ( 24 ) Net income (loss) applicable to common shareholders $ 10,165 $ 4,550 $ ( 316 ) (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) Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business. (4) 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. (5) Reflects net loss attributable to noncontrolling interest in Allstate Protection. 104 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Reportable segments revenue information For the years ended December 31, ($ in millions) 2025 2024 2023 Allstate Protection Insurance premiums Auto $ 38,090 $ 36,475 $ 32,940 Homeowners 15,363 13,360 11,739 Other personal lines 3,134 2,823 2,387 Commercial lines 419 609 811 Other business lines 676 599 550 Total Allstate Protection insurance premiums 57,682 53,866 48,427 Other revenue 2,051 1,895 1,545 Total Allstate Protection 59,733 55,761 49,972 Run-off Property-Liability — — — Protection Services Protection plans 2,159 1,869 1,540 Roadside assistance 160 150 195 Protection and insurance products 502 503 508 Intersegment premiums and service fees (1) 137 180 138 Other revenue 489 441 319 Net investment income 99 94 73 Net gains (losses) on investments and derivatives 4 ( 14 ) — Total Protection Services 3,550 3,223 2,773 Allstate Health and Benefits Employer voluntary benefits 243 985 1,001 Group health 247 481 440 Other revenue 163 327 296 Net investment income 24 94 78 Net gains (losses) on investments and derivatives ( 1 ) ( 4 ) 5 Total Allstate Health and Benefits 676 1,883 1,820 Corporate Other revenue 81 72 89 Net investment income 160 88 105 Net gains (losses) on investments and derivatives 67 22 ( 11 ) Total Corporate 308 182 183 Reconciliation of revenue Allstate Protection and Run-off Property-Liability net investment income 3,157 2,810 2,218 Allstate Protection and Run-off Property-Liability net gains (losses) on investments and derivatives ( 237 ) ( 228 ) ( 292 ) All other 635 655 558 Intersegment eliminations (1) ( 137 ) ( 180 ) ( 138 ) Consolidated revenues $ 67,685 $ 64,106 $ 57,094 (1) Intersegment insurance premiums and service fees are primarily related to Arity and Roadside and are eliminated in the consolidated financial statements. The Allstate Corporation 105 2025 Form 10-K Notes to Consolidated Financial Statements Reportable segments expense information used in measure for segment profit or loss For the years ended December 31, ($ in millions) 2025 2024 2023 Allstate Protection Claims and claims expense excluding catastrophe losses and prior year reserve reestimates (1) $ 33,628 $ 34,092 $ 34,243 Catastrophe losses 4,959 4,964 5,636 Non-catastrophe prior year reserve reestimates ( 1,961 ) ( 6 ) 485 Amortization of DAC 7,003 6,676 6,070 Advertising expense 2,100 1,863 638 Amortization of purchased intangibles 183 206 235 Restructuring and related charges 54 51 142 Other segment expenses (2) 5,073 4,762 4,613 Total 51,039 52,608 52,062 Run-off Property-Liability Claims and claims expense prior year reserve reestimates (3) 151 68 89 Other segment expenses (2) 3 5 5 Total 154 73 94 Protection Services Claims and claims expense 699 641 632 Amortization of DAC 1,328 1,217 1,058 Non-deferrable commissions 447 343 249 Restructuring and related charges 4 2 6 Other segment expenses (2) 786 747 640 Income taxes on operations 65 71 83 Total 3,329 3,021 2,668 Allstate Health and Benefits Accident, health and other policy benefits 379 991 888 Amortization of DAC 30 119 124 Restructuring and related charges — 2 6 Other segment expenses (2) 213 577 549 Income taxes on operations 12 42 53 Total 634 1,731 1,620 Corporate Interest expense 399 400 379 Restructuring and related charges 1 5 13 Other segment expenses (2) 160 163 185 Income taxes on operations ( 74 ) ( 99 ) ( 99 ) Preferred stock dividends 117 117 128 Total $ 603 $ 586 $ 606 (1) Includes Allstate Protection incurred loss adjustment expenses, net of reinsurance of $ 2.98 billion, $ 2.89 billion and $ 2.79 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (2) Includes employee-related costs, professional services, technology and certain other operating costs and expenses. (3) Includes Run-off Property-Liability incurred loss adjustment expenses, net of reinsurance of $ 28 million, $ 9 million and $ 10 million for the years ended December 31, 2025, 2024 and 2023, respectively. 106 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Additional significant financial performance data For the years ended December 31, ($ in millions) 2025 2024 2023 Amortization of DAC Allstate Protection $ 7,003 $ 6,676 $ 6,070 Protection Services 1,328 1,217 1,058 Allstate Health and Benefits 30 119 124 All other 28 27 26 Consolidated $ 8,389 $ 8,039 $ 7,278 Amortization of purchased intangibles Allstate Protection $ 183 $ 206 $ 235 Protection Services 36 47 62 Allstate Health and Benefits 1 10 12 All other $ 11 17 20 Consolidated $ 231 $ 280 $ 329 Income tax expense (benefit) Allstate Protection and Run-off Property-Liability $ 2,407 $ 1,144 $ ( 136 ) Protection Services 57 56 66 Allstate Health and Benefits (1) 474 40 53 Corporate ( 49 ) ( 83 ) ( 122 ) All other 1 5 4 Consolidated $ 2,890 $ 1,162 $ ( 135 ) (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 segment total assets, investments and deferred policy acquisition costs As of December 31, ($ in millions) 2025 2024 Assets Allstate Protection and Run-off Property-Liability $ 102,801 $ 96,988 Protection Services 8,372 7,540 Allstate Health and Benefits — 3,714 Corporate 7,610 2,727 All other 975 648 Consolidated $ 119,758 $ 111,617 Investments (1) Allstate Protection and Run-off Property-Liability $ 73,222 $ 67,671 Protection Services 2,312 2,228 Allstate Health and Benefits (2) — 219 Corporate 7,503 2,332 All other 200 160 Consolidated $ 83,237 $ 72,610 Deferred policy acquisition costs Allstate Protection $ 2,803 $ 2,548 Protection Services 3,274 3,161 Allstate Health and Benefits (2) — 1 All other 86 63 Consolidated $ 6,163 $ 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. The Allstate Corporation 107 2025 Form 10-K Notes to Consolidated Financial Statements Note 6 Investments Portfolio composition As of December 31, ($ in millions) 2025 2024 Fixed income securities, at fair value $ 59,115 $ 52,747 Equity securities, at fair value 8,398 4,463 Mortgage loans, net 879 784 Limited partnership interests 8,844 9,255 Short-term investments, at fair value 4,887 4,537 Other investments, net 1,114 824 Total $ 83,237 $ 72,610 Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities Amortized cost, net Gross unrealized Fair value ($ in millions) Gains Losses December 31, 2025 U.S. government and agencies $ 18,165 $ 43 $ ( 75 ) $ 18,133 Municipal 5,617 87 ( 61 ) 5,643 Corporate 30,050 585 ( 234 ) 30,401 Foreign government 1,464 13 ( 17 ) 1,460 ABS 1,348 8 ( 4 ) 1,352 MBS 2,086 41 ( 1 ) 2,126 Total fixed income securities $ 58,730 $ 777 $ ( 392 ) $ 59,115 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 As of December 31, 2025 As of December 31, 2024 ($ in millions) Amortized cost, net Fair value Amortized cost, net Fair value Due in one year or less $ 1,464 $ 1,460 $ 1,544 $ 1,531 Due after one year through five years 22,582 22,706 22,889 22,595 Due after five years through ten years 21,538 21,780 17,431 17,130 Due after ten years 9,712 9,691 10,526 10,250 55,296 55,637 52,390 51,506 ABS and MBS 3,434 3,478 1,226 1,241 Total $ 58,730 $ 59,115 $ 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. 108 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Net investment income For the years ended December 31, ($ in millions) 2025 2024 2023 Fixed income securities $ 2,509 $ 2,298 $ 1,761 Equity securities 99 77 75 Mortgage loans 41 36 35 Limited partnership interests 634 600 499 Short-term investments 345 290 253 Other investments 119 106 169 Investment income, before expense 3,747 3,407 2,792 Investment expense ( 298 ) ( 315 ) ( 314 ) Net investment income $ 3,449 $ 3,092 $ 2,478 Net gains (losses) on investments and derivatives by asset type For the years ended December 31, ($ in millions) 2025 2024 2023 Fixed income securities $ ( 215 ) $ ( 200 ) $ ( 540 ) Equity securities 257 82 282 Mortgage loans ( 2 ) ( 1 ) ( 4 ) Limited partnership interests ( 18 ) ( 9 ) 4 Derivatives ( 76 ) ( 14 ) ( 84 ) Other investments ( 47 ) 40 42 Other (1) ( 67 ) ( 123 ) — Net gains (losses) on investments and derivatives $ ( 168 ) $ ( 225 ) $ ( 300 ) (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 9 for further detail. Net gains (losses) on investments and derivatives by transaction type For the years ended December 31, ($ in millions) 2025 2024 2023 Sales $ ( 253 ) $ ( 160 ) $ ( 433 ) Credit losses ( 110 ) ( 146 ) ( 99 ) Valuation change of equity investments (1) 271 95 316 Valuation change and settlements of derivatives ( 76 ) ( 14 ) ( 84 ) Net gains (losses) on investments and derivatives $ ( 168 ) $ ( 225 ) $ ( 300 ) (1) Includes valuation changes 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 For the years ended December 31, ($ in millions) 2025 2024 2023 Gross realized gains $ 450 $ 340 $ 115 Gross realized losses ( 660 ) ( 537 ) ( 633 ) Net appreciation (decline) recognized in net income for assets that are still held For the years ended December 31, ($ in millions) 2025 2024 2023 Equity securities $ 221 $ 37 $ 151 Limited partnership interests carried at fair value 3 76 85 Total $ 224 $ 113 $ 236 The Allstate Corporation 109 2025 Form 10-K Notes to Consolidated Financial Statements Credit losses recognized in net income For the years ended December 31, ($ in millions) 2025 2024 2023 Fixed income securities: Municipal $ — $ ( 2 ) $ — Corporate ( 4 ) ( 1 ) ( 24 ) ABS ( 1 ) — 2 Total fixed income securities ( 5 ) ( 3 ) ( 22 ) Mortgage loans ( 2 ) ( 1 ) ( 4 ) Limited partnership interests ( 12 ) ( 24 ) ( 25 ) Other investments Bank loans ( 12 ) 6 ( 18 ) Real estate ( 12 ) ( 2 ) ( 29 ) Other assets ( 52 ) ( 123 ) — Commitments to fund line of credit, commercial mortgage loans and bank loans ( 15 ) 1 ( 1 ) Total $ ( 110 ) $ ( 146 ) $ ( 99 ) Unrealized net capital gains and losses included in AOCI ($ in millions) Fair value Gross unrealized Unrealized net gains (losses) December 31, 2025 Gains Losses Fixed income securities $ 59,115 $ 777 $ ( 392 ) $ 385 Short-term investments 4,887 — ( 1 ) ( 1 ) Derivative instruments (1) — — ( 2 ) ( 2 ) Unrealized net capital gains and losses, pre-tax 382 Reclassification of noncontrolling interest — Deferred income taxes ( 85 ) Unrealized net capital gains and losses, after-tax $ 297 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) For the years ended December 31, ($ in millions) 2025 2024 2023 Fixed income securities $ 1,254 $ ( 85 ) $ 2,101 Short-term investments 1 ( 1 ) — Derivative instruments — — 1 Limited partnerships interests — 4 ( 6 ) Investments classified as held for sale (1) 110 ( 110 ) — Total 1,365 ( 192 ) 2,096 Reclassification of noncontrolling interest ( 3 ) ( 10 ) ( 10 ) Deferred income taxes ( 294 ) 35 ( 435 ) Change in unrealized net capital gains and losses, after-tax $ 1,068 $ ( 167 ) $ 1,651 (1) Unrealized net capital gains and losses for investments disposed of in the EVB business sale. 110 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Mortgage loans The Company’s mortgage loans totaled $ 879 million and $ 784 million, net of credit loss allowance, as of December 31, 2025 and 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 $ 260 million and $ 61 million as of December 31, 2025 and 2024, respectively, and have recourse to the borrower. Principal geographic distribution of commercial real estate exceeding 5% of the commercial mortgage loans portfolio As of December 31, (% of commercial mortgage loan portfolio carrying value) 2025 2024 California 24.4 % 22.9 % Texas 12.2 13.8 Virginia 7.3 6.1 Tennessee 7.2 6.2 Ohio 6.0 5.4 Florida 2.8 8.5 As of December 31, 2025, the residential mortgage loans were secured by properties geographically dispersed throughout the United States with concentrations over 5% in New York, New Jersey, Florida, Pennsylvania, Ohio and Texas. Types of properties collateralizing the mortgage loan portfolio As of December 31, (% of mortgage loan portfolio carrying value) 2025 2024 Commercial Apartment Complex 17.0 % 24.9 % Retail 18.7 21.0 Warehouse 16.2 20.9 Office 7.6 13.4 Other 10.9 12.0 Residential 29.6 7.8 Total 100.0 % 100.0 % Contractual maturities of the commercial mortgage loan portfolio As of December 31, 2025 ($ in millions) Number of loans Amortized cost, net Percent 2026 8 $ 139 22.4 % 2027 6 57 9.2 2028 11 151 24.4 2029 5 94 15.2 Thereafter 13 178 28.8 Total 43 $ 619 100.0 % Residential mortgage loans typically have 30-year terms and were purchased within 2 years of loan origination. Limited partnership interests include interests in private equity funds, real estate funds and other funds. Principal factors influencing carrying value appreciation or decline include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. For equity method limited partnerships, the Company recognizes an impairment loss when evidence demonstrates that the loss is other than temporary. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment. Changes in fair value limited partnerships are recorded through net investment income and therefore are not tested for impairment. The Allstate Corporation 111 2025 Form 10-K Notes to Consolidated Financial Statements Carrying value for limited partnership interests As of December 31, ($ in millions) 2025 2024 Private equity $ 7,247 $ 7,734 Real estate 1,451 1,236 Other (1) 146 285 Total $ 8,844 $ 9,255 (1) Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities. Municipal bonds The Company maintains a diversified portfolio of municipal bonds, including tax-exempt and taxable securities, which totaled $ 5.64 billion and $ 8.84 billion as of December 31, 2025 and 2024, respectively. The balances as of December 31, 2025 and 2024 include $ 4.65 billion and $ 7.71 billion of tax-exempt securities, respectively. The municipal bond portfolio includes general obligations of state and local issuers and revenue bonds (including pre-refunded bonds, which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest). Principal geographic distribution of municipal bond issuers exceeding 5% of the portfolio As of December 31, (% of municipal bond portfolio carrying value) 2025 2024 Texas 11.2 % 12.8 % Illinois 11.2 6.1 New York 10.2 6.0 Washington 7.1 6.5 California 7.0 6.8 Florida 3.0 6.5 Short-term investments 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 December 31, 2025 and 2024, the fair value of short-term investments totaled $ 4.89 billion and $ 4.54 billion, respectively. Other investments Other investments primarily consist of real estate, bank loans 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 As of December 31, ($ in millions) 2025 2024 Real estate $ 630 $ 620 Bank loans, net 473 201 Other 11 3 Total $ 1,114 $ 824 Concentration of credit risk As of December 31, 2025, the Company is not exposed to any credit concentration risk of a single issuer and its affiliates greater than 10 % of the Company’s shareholders’ equity, other than the U.S. government and its agencies. Securities loaned The Company’s business activities include securities lending programs with third parties, mostly large banks. As of December 31, 2025 and 2024, fixed income and equity securities with a carrying value of $ 1.87 billion and $ 1.95 billion, respectively, were on loan under these agreements. Interest income on collateral, net of fees, was $ 7 million, $ 3 million and zero in 2025, 2024 and 2023, respectively. Other investment information Included in fixed income securities are below investment grade assets totaling $ 4.68 billion and $ 4.57 billion as of December 31, 2025 and 2024, respectively. As of December 31, 2025, fixed income securities, short-term investments and cash with a carrying value of $ 202 million were on deposit with regulatory authorities as required by law. As of December 31, 2025, the carrying value of fixed income securities and other investments that were non-income producing was $ 1 million. 112 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements 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. Recoveries after write-offs are recognized when received. Accrued interest excluded from the amortized cost of fixed income securities totaled $ 662 million and $ 574 million as of December 31, 2025, and 2024, respectively, and is reported within the accrued investment income line of the 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. The Allstate Corporation 113 2025 Form 10-K Notes to Consolidated Financial Statements Rollforward of credit loss allowance for fixed income securities For the years ended December 31, ($ in millions) 2025 2024 2023 Beginning balance $ ( 17 ) $ ( 36 ) $ ( 13 ) Credit losses on securities for which credit losses not previously reported ( 3 ) ( 8 ) ( 11 ) Net (increases) decreases related to credit losses previously reported ( 2 ) 2 ( 11 ) Decrease (increase) related to sales and other — 3 ( 1 ) Write-offs 12 22 — Ending balance $ ( 10 ) $ ( 17 ) $ ( 36 ) Components of credit loss allowance as of December 31 Corporate bonds ( 8 ) ( 16 ) ( 35 ) ABS ( 2 ) ( 1 ) ( 1 ) Total $ ( 10 ) $ ( 17 ) $ ( 36 ) Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1) Less than 12 months 12 months or more ($ in millions) Number of issues Fair value Unrealized losses Number of issues Fair value Unrealized losses Total unrealized losses December 31, 2025 Fixed income securities U.S. government and agencies 74 $ 11,840 $ ( 72 ) 54 $ 209 $ ( 3 ) $ ( 75 ) Municipal 106 640 ( 6 ) 527 1,423 ( 55 ) ( 61 ) Corporate 530 3,933 ( 49 ) 640 3,677 ( 185 ) ( 234 ) Foreign government 77 553 ( 9 ) 53 40 ( 8 ) ( 17 ) ABS 58 205 ( 2 ) 12 42 ( 2 ) ( 4 ) MBS 29 246 ( 1 ) 59 3 — ( 1 ) Total fixed income securities 874 $ 17,417 $ ( 139 ) 1,345 $ 5,394 $ ( 253 ) $ ( 392 ) Investment grade fixed income securities 694 $ 16,899 $ ( 123 ) 1,212 $ 4,793 $ ( 229 ) $ ( 352 ) Below investment grade fixed income securities 180 518 ( 16 ) 133 601 ( 24 ) ( 40 ) Total fixed income securities 874 $ 17,417 $ ( 139 ) 1,345 $ 5,394 $ ( 253 ) $ ( 392 ) 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 $ 11 million and $ 16 million and unrealized losses of $ 2 million and $ 1 million with credit loss allowances of $ 1 million and $ 3 million as of December 31, 2025, and 2024, respectively. 114 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Gross unrealized losses by unrealized loss position and credit quality as of December 31, 2025 ($ in millions) Investment grade Below investment grade Total Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) $ ( 329 ) $ ( 36 ) $ ( 365 ) Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (2) ( 23 ) ( 4 ) ( 27 ) Total unrealized losses $ ( 352 ) $ ( 40 ) $ ( 392 ) (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 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 December 31, 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 The Allstate Corporation 115 2025 Form 10-K Notes to Consolidated Financial Statements 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. Residential mortgage loans primarily include fixed-rate, amortizing mortgage loans on rental properties owned by borrowers with credit scores typically considered prime or above. The primary credit quality indicator is whether a loan is performing or nonperforming. The Company defines nonperforming residential mortgage loans as those that are 90 days or more past due and/or in nonaccrual status. Commercial mortgage loans amortized cost by debt service coverage ratio distribution and year of origination December 31, 2025 December 31, 2024 ($ in millions) 2020 and prior 2021 2022 2023 2024 2025 Total Total Below 1.0 $ — $ — $ — $ — $ — $ — $ — $ — 1.0 - 1.25 10 — — 25 36 — 71 137 1.26 - 1.50 34 — 42 19 — — 95 105 Above 1.50 178 164 47 58 15 — 462 493 Amortized cost before allowance $ 222 $ 164 $ 89 $ 102 $ 51 $ — $ 628 $ 735 Allowance ( 9 ) ( 12 ) Amortized cost, net $ 619 $ 723 Payment status of mortgage loans December 31, 2025 ($ in millions) Commercial Residential Total Less than 90 days past due $ — $ 2 $ 2 90 days or greater past due — 2 2 Total past due before allowance — 4 4 Current before allowance 628 257 885 Total mortgage loans before allowance 628 261 889 Allowance ( 9 ) ( 1 ) ( 10 ) Total mortgage loans $ 619 $ 260 $ 879 Payments on all mortgage loans were current as of December 31, 2024 and 2023. Rollforward of credit loss allowance for mortgage loans For the years ended December 31, ($ in millions) 2025 2024 2023 Beginning balance $ ( 12 ) $ ( 11 ) $ ( 7 ) Net increases related to credit losses ( 2 ) ( 1 ) ( 4 ) Write-offs 4 — — Ending balance $ ( 10 ) $ ( 12 ) $ ( 11 ) Components of credit loss allowance as of December 31 Commercial $ ( 9 ) $ ( 12 ) $ ( 11 ) Residential ( 1 ) — — Total $ ( 10 ) $ ( 12 ) $ ( 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 116 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements is determined to be the year in which the asset is acquired. Bank loans amortized cost by credit rating and year of origination ($ in millions) December 31, 2025 December 31, 2024 2020 and prior 2021 2022 2023 2024 2025 Total Total NAIC 1 / A $ — $ — $ — $ — $ 44 $ 155 $ 199 $ 45 NAIC 2 / BBB — — — — 1 143 144 6 NAIC 3 / BB — — — 2 6 15 23 27 NAIC 4 / B 1 2 — 24 22 57 106 122 NAIC 5-6 / CCC and below — — 1 7 1 9 18 11 Amortized cost before allowance $ 1 $ 2 $ 1 $ 33 $ 74 $ 379 $ 490 $ 211 Allowance ( 17 ) ( 10 ) Amortized cost, net $ 473 $ 201 Rollforward of credit loss allowance for bank loans For the years ended December 31, ($ in millions) 2025 2024 2023 Beginning balance $ ( 10 ) $ ( 22 ) $ ( 57 ) Net (increases) decreases related to credit losses ( 12 ) 6 ( 18 ) Reduction related to sales — — 50 Write-offs 5 6 3 Ending balance $ ( 17 ) $ ( 10 ) $ ( 22 ) Note 7 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 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 The Allstate Corporation 117 2025 Form 10-K Notes to Consolidated Financial Statements 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. 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 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 118 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements models are widely accepted in the financial 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 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 is written down to fair value less costs to sell 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 partnership interests and certain equity investments carried at fair value, which do not have readily determinable fair values and use NAV provided by the investees, are excluded from the fair value hierarchy. Limited partnership interests 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 December 31, 2025, the Company has commitments to invest $ 125 million in limited partnership interests that are reported at net asset value. The Allstate Corporation 119 2025 Form 10-K Notes to Consolidated Financial Statements Assets and liabilities measured at fair value December 31, 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 $ 18,124 $ 9 $ — $ 18,133 Municipal — 5,614 29 5,643 Corporate - public — 19,907 12 19,919 Corporate - privately placed — 10,295 187 10,482 Foreign government — 1,460 — 1,460 ABS — 1,330 22 1,352 MBS — 2,068 58 2,126 Total fixed income securities 18,124 40,683 308 59,115 Equity securities (1) 7,572 239 22 7,833 Short-term investments 1,791 3,090 6 4,887 Other investments — 11 1 $ ( 1 ) 11 Other assets — — 147 147 Total recurring basis assets 27,487 44,023 484 ( 1 ) 71,993 Non-recurring basis — — 32 32 Total assets at fair value $ 27,487 $ 44,023 $ 516 $ ( 1 ) $ 72,025 Investments reported at NAV (2) 1,266 Total $ 73,291 Liabilities Other liabilities $ ( 2 ) $ ( 19 ) $ ( 1 ) $ 19 $ ( 3 ) Total recurring basis liabilities ( 2 ) ( 19 ) ( 1 ) 19 ( 3 ) Total liabilities at fair value $ ( 2 ) $ ( 19 ) $ ( 1 ) $ 19 $ ( 3 ) (1) Excludes $ 99 million of securities using the measurement alternative or the equity method of accounting and $ 466 million reported at NAV. (2) Includes $ 466 million of equity securities and $ 800 million of limited partnerships. 120 www.allstate.com 2025 Form 10-K Notes to 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 December 31, 2025 and 2024, Level 3 fair value measurements of fixed income securities totaled $ 308 million and $ 248 million, respectively, and included $ 146 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, $ 12 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 $ 29 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. The Allstate Corporation 121 2025 Form 10-K Notes to Consolidated Financial Statements Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2025 Balance as of December 31, 2024 Total gains (losses) included in: Transfers Balance as of December 31, 2025 ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements Assets Fixed income securities: Municipal $ 2 $ — $ — $ 1 $ — $ 26 $ — $ — $ 29 Corporate - public 22 ( 1 ) 1 — ( 7 ) 11 ( 11 ) ( 3 ) 12 Corporate - privately placed 110 ( 4 ) 4 12 — 83 — ( 18 ) 187 ABS 26 — — 26 ( 41 ) 15 — ( 4 ) 22 MBS 88 — — — — — — ( 30 ) 58 Total fixed income securities 248 ( 5 ) 5 39 ( 48 ) 135 ( 11 ) ( 55 ) 308 Equity securities 407 28 — — ( 331 ) 7 ( 89 ) — 22 Short-term investments 5 — — — — 11 ( 9 ) ( 1 ) 6 Other investments 1 — — — — — — — 1 Other assets 134 13 — — — — — — 147 Assets held for sale 7 — 1 — — — ( 8 ) — — Total recurring Level 3 assets 802 36 6 39 ( 379 ) 153 ( 117 ) ( 56 ) 484 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 year ended December 31, 2024 Balance as of December 31, 2023 Total gains (losses) included in: Transfers Transfers (to) from held for sale Balance as of December 31, 2024 ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements Assets Fixed income securities: Municipal $ 11 $ ( 2 ) $ 1 $ — $ — $ — $ — $ ( 5 ) $ ( 3 ) $ 2 Corporate - public 26 1 — — — ( 7 ) 16 ( 14 ) — 22 Corporate - privately placed 58 ( 6 ) ( 2 ) — — — 64 ( 2 ) ( 2 ) 110 ABS and MBS 58 — — — — — 59 — ( 3 ) 114 Total fixed income securities 153 ( 7 ) ( 1 ) — — ( 7 ) 139 ( 21 ) ( 8 ) 248 Equity securities 402 8 — — — — 25 ( 28 ) — 407 Short-term investments 1 — — — — — 27 ( 20 ) ( 3 ) 5 Other investments 2 6 — — — — — ( 7 ) — 1 Other assets 118 16 — — — — — — — 134 Assets held for sale — — — — — 7 — — — 7 Total recurring Level 3 assets 676 23 ( 1 ) — — — 191 ( 76 ) ( 11 ) 802 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 122 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2023 Balance as of December 31, 2022 Total gains (losses) included in: Transfers Balance as of December 31, 2023 ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Settlements Assets Fixed income securities: Municipal $ 21 $ 3 $ ( 1 ) $ — $ — $ — $ ( 10 ) $ ( 2 ) $ 11 Corporate - public 69 ( 1 ) 2 — — — ( 44 ) — 26 Corporate - privately placed 55 ( 12 ) 1 16 — 1 ( 3 ) — 58 ABS and MBS 28 — — — — 31 — ( 1 ) 58 Total fixed income securities 173 ( 10 ) 2 16 — 32 ( 57 ) ( 3 ) 153 Equity securities 333 36 — — — 77 ( 44 ) — 402 Short-term investments 6 — — — — 13 — ( 18 ) 1 Other investments 3 ( 1 ) — — — — — — 2 Other assets 103 15 — — — — — — 118 Total recurring Level 3 assets 618 40 2 16 — 122 ( 101 ) ( 21 ) 676 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — Total Level 3 gains (losses) included in net income For the years ended December 31, ($ in millions) 2025 2024 2023 Net investment income $ 1 $ ( 8 ) $ ( 1 ) Net gains (losses) on investments and derivatives 21 15 26 Operating costs and expenses 13 16 15 Transfers into Level 3 during 2025 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. There were no transfers into Level 3 during 2024. Transfers into Level 3 during 2023 included situations where securities were written down utilizing an internal price where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers out of Level 3 during 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 out of Level 3 during 2024 and 2023. The Allstate Corporation 123 2025 Form 10-K Notes to Consolidated Financial Statements Valuation changes included in net income and OCI for Level 3 assets and liabilities held as of December 31, ($ in millions) 2025 2024 2023 Assets Fixed income securities: Municipal $ — $ ( 2 ) $ — Corporate - public ( 1 ) 1 — Corporate - privately placed ( 3 ) ( 6 ) ( 12 ) Total fixed income securities ( 4 ) ( 7 ) ( 12 ) Equity securities 26 13 35 Other investments — — ( 1 ) Other assets 13 16 15 Total recurring Level 3 assets $ 35 $ 22 $ 37 Liabilities Other liabilities $ ( 1 ) $ — $ — Total recurring Level 3 liabilities ( 1 ) — — Total included in net income $ 34 $ 22 $ 37 Components of net income Net investment income $ 1 $ ( 8 ) $ ( 1 ) Net gains (losses) on investments and derivatives 20 14 23 Operating costs and expenses 13 16 15 Total included in net income $ 34 $ 22 $ 37 Assets Corporate - public $ 1 $ — $ 1 Corporate - privately placed 4 ( 1 ) 2 Changes in unrealized net capital gains and losses reported in OCI $ 5 $ ( 1 ) $ 3 Financial instruments not carried at fair value ($ in millions) December 31, 2025 December 31, 2024 Financial assets Fair value level Amortized cost, net (1) Fair value Amortized cost, net Fair value Mortgage loans Level 3 $ 879 $ 868 $ 784 $ 746 Bank loans Level 3 473 487 201 207 Financial liabilities Fair value level Carrying value (1) Fair value Carrying value (2) Fair value Debt Level 2 $ 7,490 $ 7,367 $ 8,085 $ 7,740 Liability for collateral Level 2 1,934 1,934 2,041 2,041 Liabilities held for sale Level 3 — — 40 40 (1) Represents the amounts reported on the Consolidated Statements of Financial Position. 124 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Note 8 Derivative Financial Instruments and Off-balance Sheet 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 securities using futures, index total return swaps, and options to increase equity exposure. Allstate Protection and Run-off Property-Liability segments 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 Allstate Protection and Run-off Property-Liability fixed income portfolio. Equity index total return swaps, futures and options are used 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 to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations. As of December 31, 2025 and 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. 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 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. The Allstate Corporation 125 2025 Form 10-K Notes to Consolidated Financial Statements Summary of the volume and fair value positions of derivative instruments as of December 31, 2025 Volume (1) ($ in millions, except number of contracts) 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 3,386 — — — Equity and index contracts Options Other investments n/a 12 — — — Futures Other assets n/a 32 — — — Foreign currency contracts Foreign currency forwards Other investments $ 503 n/a ( 14 ) 2 ( 16 ) Contingent consideration Other assets 250 n/a 147 147 — Credit default contracts Credit default swaps – selling protection Other investments 550 n/a 9 9 — Total asset derivatives $ 1,340 3,430 $ 142 $ 158 $ ( 16 ) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Interest rate swap agreements Other liabilities & accrued expenses $ 37 n/a $ ( 1 ) $ — $ ( 1 ) Futures Other liabilities & accrued expenses n/a 1,323 — — — Equity and index contracts Options Other liabilities & accrued expenses n/a 12 — — — Futures Other liabilities & accrued expenses n/a 1,063 ( 2 ) — ( 2 ) Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 45 n/a ( 3 ) — ( 3 ) Total liability derivatives 82 2,398 ( 6 ) $ — $ ( 6 ) Total derivatives $ 1,422 5,828 $ 136 (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) 126 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Summary of the volume and fair value positions of derivative instruments as of December 31, 2024 Volume (1) ($ in millions, except number of contracts) 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 & accrued expenses n/a 12,112 $ ( 1 ) $ — $ ( 1 ) Equity and index contracts Futures Other liabilities & 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) 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 December 31, 2025 Asset derivatives $ 2 $ ( 16 ) $ 15 $ 1 $ — $ 1 Liability derivatives ( 20 ) 16 3 ( 1 ) — ( 1 ) December 31, 2024 Asset derivatives $ 21 $ ( 1 ) $ ( 18 ) $ 2 $ — $ 2 Liability derivatives ( 1 ) 1 — — — — (1) All OTC derivatives are subject to enforceable MNAs. The Allstate Corporation 127 2025 Form 10-K Notes to Consolidated Financial Statements Gains (losses) from valuation and settlements reported on derivatives ($ in millions) Net gains (losses) on investments and derivatives Operating costs and expenses Total gain (loss) recognized in net income on derivatives 2025 Interest rate contracts $ ( 10 ) $ — $ ( 10 ) Equity and index contracts ( 10 ) 25 15 Contingent consideration — 13 13 Foreign currency contracts ( 48 ) — ( 48 ) Credit default contracts ( 8 ) — ( 8 ) Total $ ( 76 ) $ 38 $ ( 38 ) 2024 Interest rate contracts $ ( 32 ) $ — $ ( 32 ) Equity and index contracts ( 17 ) 22 5 Contingent consideration — 16 16 Foreign currency contracts 32 — 32 Credit default contracts 3 — 3 Total $ ( 14 ) $ 38 $ 24 2023 Interest rate contracts $ ( 8 ) $ — $ ( 8 ) Equity and index contracts ( 32 ) 28 ( 4 ) Contingent consideration — 15 15 Foreign currency contracts ( 14 ) — ( 14 ) Credit default contracts ( 30 ) — ( 30 ) Other contracts — ( 1 ) ( 1 ) Total $ ( 84 ) $ 42 $ ( 42 ) 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) December 31, 2025 Pledged by the Company $ 18 Pledged to the Company (1) — (1) $ 14 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk. Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable MNAs. OTC derivatives counterparty credit exposure by counterparty credit rating ($ in millions) December 31, 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. 128 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements 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) December 31, 2025 Pledged by the Company $ 95 Received by the Company — 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) December 31, 2025 December 31, 2024 Gross liability fair value of contracts containing credit-risk-contingent features $ 16 $ 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 ( 14 ) — Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ — $ — 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 December 31, 2025 Index Corporate debt $ — $ — $ — $ 550 $ — $ 550 $ 9 Total $ — $ — $ — $ 550 $ — $ 550 $ 9 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. Off-balance sheet financial instruments Commitments to invest, commitments to purchase private placement securities, commitments to fund loans, financial guarantees and credit guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Consolidated Statements of Financial Position. The Allstate Corporation 129 2025 Form 10-K Notes to Consolidated Financial Statements Contractual amounts of off-balance sheet financial instruments As of December 31, ($ in millions) 2025 2024 Commitments to invest in limited partnership interests $ 3,244 $ 3,345 Private placement commitments 74 29 Other loan commitments 14 16 In the preceding table, the contractual amounts represent the amount at risk if the contract is fully drawn upon, the counterparty defaults and the value of any underlying security becomes worthless. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk. Commitments to invest in limited partnership interests represent agreements to acquire new or additional participation in certain limited partnership investments. The Company enters into these agreements in the normal course of business. Because the investments in limited partnerships are not actively traded, it is not practical to estimate the fair value of these commitments. Private placement commitments represent commitments to purchase private placement debt and private equity securities at a future date. The Company enters into these agreements in the normal course of business. The fair value of the debt commitments generally cannot be estimated on the date the commitment is made as the terms and conditions of the underlying private placement securities are not yet final. Because the private equity securities are not actively traded, it is not practical to estimate fair value of the commitments. Other loan commitments are agreements to lend to a borrower provided there is no violation of any condition established in the contract. The Company enters into these agreements to commit to future loan fundings at predetermined interest rates. Unless unconditionally cancellable, the Company recognizes a credit loss allowance on such commitments. Commitments have either fixed or varying expiration dates or other termination clauses. The fair value of these commitments is insignificant. Note 9 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 2025 and $ 123 million in 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, $ 40 million and $ 40 million in 2025, 2024 and 2023, respectively. Prior to July 1, 2024, the Company received a management fee for the services provided to the Reciprocal Exchanges. The management fees were zero , $ 24 million and $ 48 million in 2025, 2024 and 2023, respectively. Earned premiums for the Reciprocal Exchanges generated zero , $ 199 million and $ 224 million in 2025, 2024 and 2023, respectively. Total costs and expenses were $ 16 million, $ 280 million and $ 251 million in 2025, 2024 and 2023, respectively. 130 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Assets and liabilities of Reciprocal Exchanges ($ in millions) December 31, 2025 December 31, 2024 Assets Fixed income securities $ 4 $ 47 Short-term investments 68 112 Premium installment and other receivables, net — 9 Reinsurance recoverables, net 53 76 Other assets — 25 Total assets 125 269 Liabilities Reserve for property and casualty insurance claims and claims expense 153 214 Unearned premiums — 22 Other liabilities and expenses 186 235 Total liabilities $ 339 $ 471 Nonconsolidated VIEs The Company makes investments in limited partnership interests and other alternative investments that may be issued by VIEs. These investments are generally accounted for under the equity method and are reported as limited partnership interests in the Company’s Consolidated Statements of Financial Position. The Company does not take an active role in the management of these investments. Therefore, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss is limited to the investment carrying value and any unfunded commitments. Neither the Company’s carrying amounts nor the unfunded commitments related to these VIEs are material individually or in the aggregate. In addition, the Company makes investments in structured securities issued by VIEs for which the Company is not the investment manager. These structured investments typically invest in fixed income securities and are managed by third parties and include ABS and collateralized debt obligations. The Company has not provided financial or other support other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. Neither the Company’s carrying amounts nor the unfunded commitments related to these VIEs are material individually or in the aggregate. Note 10 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. Recent tort reform measures in certain jurisdictions have altered the legal environment and may affect claim settlement patterns over time. These changes require the Company to evaluate whether historical settlement trends remain appropriate for reserve development. In cases where tort reform is expected to influence claim outcomes, more recent claim settlement experience may be given greater consideration when selecting development factors. While inflationary pressures have moderated compared to prior periods, factors such as a higher mix of more complex repairs, combined with skilled labor shortages, continue to influence physical damage loss costs. Medical cost trends, 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 The Allstate Corporation 131 2025 Form 10-K Notes to Consolidated Financial Statements 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 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 a 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 Consolidated Statements of Operations in the period such changes are determined. Management believes that the reserve for property and casualty insurance claims and claims expense, net of recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the 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 ($ in millions) 2025 2024 2023 Balance as of January 1 $ 41,917 $ 39,858 $ 37,541 Less recoverables (1) 8,602 8,396 9,176 Net balance as of January 1 33,315 31,462 28,365 Incurred claims and claims expense related to: Current year 39,263 40,043 40,521 Prior years ( 1,809 ) ( 308 ) 549 Total incurred 37,454 39,735 41,070 Claims and claims expense paid related to: Current year ( 23,173 ) ( 23,488 ) ( 23,607 ) Prior years ( 14,529 ) ( 14,394 ) ( 14,366 ) Total paid ( 37,702 ) ( 37,882 ) ( 37,973 ) Net balance as of December 31 33,067 33,315 31,462 Plus recoverables 8,012 8,602 8,396 Balance as of December 31 $ 41,079 $ 41,917 $ 39,858 (1) Recoverables comprises reinsurance and indemnification recoverables. See Note 11 for further details. 132 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Reconciliation of total claims and claims expense incurred and paid by coverage December 31, 2025 ($ in millions) Incurred Paid Allstate Protection Auto insurance - liability coverage $ 14,575 $ ( 13,741 ) Auto insurance - physical damage coverage 7,459 ( 7,584 ) Homeowners insurance 8,852 ( 8,945 ) Total auto and homeowners insurance 30,886 ( 30,270 ) Other personal lines 2,281 ( 1,891 ) Commercial lines 145 ( 667 ) Other business lines 213 ( 254 ) Protection Services 604 ( 598 ) Run-off Property-Liability 123 ( 125 ) Unallocated loss adjustment expenses (“ULAE”) 3,241 ( 3,400 ) Claims incurred and paid from before 2021 ( 15 ) ( 612 ) Other (1) ( 24 ) 115 Total $ 37,454 $ ( 37,702 ) (1) Paid and incurred amounts primarily related to the effect of foreign currency translation adjustments. Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the calendar year. This expense includes losses from catastrophes of $ 4.96 billion, $ 4.96 billion and $ 5.64 billion in 2025, 2024 and 2023, 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. The Company defines a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $ 1 million and involves multiple first-party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes. The Company is also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. The Company derives and records a single best reserve estimate for losses from catastrophes, in conformance with generally accepted actuarial standards. As a result, management believes that no other estimate is better than the recorded amount. Due to the uncertainties involved, including the factors described above, the ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The Allstate Corporation 133 2025 Form 10-K Notes to Consolidated Financial Statements Prior year reserve reestimates included in claims and claims expense (1) For the years ended December 31, Non-catastrophe losses Catastrophe losses (2) Total ($ in millions) 2025 2024 2023 2025 2024 2023 2025 2024 2023 Auto (3) $ ( 1,852 ) $ ( 328 ) $ 294 $ ( 28 ) $ ( 36 ) $ ( 50 ) $ ( 1,880 ) $ ( 364 ) $ 244 Homeowners ( 59 ) ( 73 ) 66 43 ( 322 ) 36 ( 16 ) ( 395 ) 102 Other personal lines 142 224 37 ( 14 ) ( 7 ) ( 18 ) 128 217 19 Commercial lines ( 147 ) 171 76 ( 1 ) ( 5 ) 8 ( 148 ) 166 84 Other business lines ( 45 ) — 12 — — — ( 45 ) — 12 Run-off Property-Liability (4) 151 68 89 — — — 151 68 89 Protection Services 1 — ( 1 ) — — — 1 — ( 1 ) Total prior year reserve reestimates $ ( 1,809 ) $ 62 $ 573 $ — $ ( 370 ) $ ( 24 ) $ ( 1,809 ) $ ( 308 ) $ 549 (1) Reserve releases are shown in parentheses. (2) 2025 includes $ 60 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024, and $ 54 million favorable subrogation settlements related to the 2021 Colorado Marshall Fire. (3) 2025 includes reserve releases primarily related to favorable severity development of $ 1.18 billion in personal auto injury coverage and $ 671 million in all other personal auto coverages. (4) The Company’s 2025, 2024 and 2023 annual reserve reviews, using established industry and actuarial best practices, resulted in reserve reestimates that increased reserves by $ 146 million, $ 58 million and $ 80 million, respectively. 134 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements The following presents information about incurred and paid claims development as of December 31, 2025, net of recoverables, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included in the net incurred claims amounts. See Note 2 for the accounting policy and methodology for determining reserves for claims and claims expense, including both reported and IBNR claims. The cumulative number of reported claims is identified by coverage and excludes reported claims for industry pools and facilities where information is not available. The information about incurred and paid claims development for the 2021 to 2025 years, and the average annual percentage payout of incurred claims by age as of December 31, 2025, is presented as required supplementary information. Auto insurance – liability coverage ($ in millions, except number of reported claims) Incurred claims and allocated claim adjustment expenses, net of recoverables IBNR reserves plus expected development on reported claims Cumulative number of reported claims (in thousands) For the years ended December 31, Prior year reserve reestimates As of December 31, 2025 (unaudited) (unaudited) (unaudited) (unaudited) Accident year 2021 2022 2023 2024 2025 2021 $ 10,468 $ 10,917 $ 11,236 $ 11,291 $ 11,119 $ ( 172 ) $ 559 2,440 2022 — 13,308 13,307 13,565 13,293 ( 272 ) 1,254 2,612 2023 — — 15,357 14,817 14,452 ( 365 ) 2,547 2,602 2024 — — — 15,902 15,191 ( 711 ) 5,136 2,463 2025 — — — — 16,095 10,635 2,403 Total $ 70,150 $ ( 1,520 ) Reconciliation to total prior year reserve reestimates recognized by line Prior year reserve reestimates for pre-2021 accident years ( 34 ) Prior year reserve reestimates for ULAE ( 70 ) Other — Total prior year reserve reestimates $ ( 1,624 ) Cumulative paid claims and allocated claims adjustment expenses, net of recoverables For the years ended December 31, (unaudited) (unaudited) (unaudited) (unaudited) Accident year 2021 2022 2023 2024 2025 2021 $ 3,574 $ 7,341 $ 9,157 $ 10,105 $ 10,560 2022 — 4,466 9,098 11,087 12,039 2023 — — 5,094 9,875 11,905 2024 — — — 5,211 10,055 2025 — — — — 5,460 Total $ 50,019 All outstanding liabilities before 2021, net of recoverables 1,390 Liabilities for claims and claim adjustment expenses, net of recoverables $ 21,521 Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2025 1 year 2 years 3 years 4 years 5 years After 5 years Auto insurance – liability coverage 33.8 % 33.4 % 15.1 % 7.8 % 4.1 % 5.8 % The Allstate Corporation 135 2025 Form 10-K Notes to Consolidated Financial Statements Auto insurance – physical damage coverage ($ in millions, except number of reported claims) Incurred claims and allocated claim adjustment expenses, net of recoverables IBNR reserves plus expected development on reported claims Cumulative number of reported claims (in thousands) For the years ended December 31, Prior year reserve reestimates As of December 31, 2025 (unaudited) (unaudited) (unaudited) (unaudited) Accident year 2021 2022 2023 2024 2025 2021 $ 7,236 $ 7,264 $ 7,225 $ 7,230 $ 7,230 $ — $ 3 4,633 2022 — 9,324 9,011 9,052 9,052 — 6 4,979 2023 — — 9,441 9,099 9,072 ( 27 ) ( 7 ) 4,807 2024 — — — 8,548 8,337 ( 211 ) 8 4,385 2025 — — — — 7,697 576 3,830 Total $ 41,388 $ ( 238 ) Reconciliation to total prior year reserve reestimates recognized by line Prior year reserve reestimates for pre-2021 accident years ( 8 ) Prior year reserve reestimates for ULAE ( 10 ) Other — Total prior year reserve reestimates $ ( 256 ) Cumulative paid claims and allocated claims adjustment expenses, net of recoverables For the years ended December 31, (unaudited) (unaudited) (unaudited) (unaudited) Accident year 2021 2022 2023 2024 2025 2021 $ 6,803 $ 7,306 $ 7,250 $ 7,229 $ 7,227 2022 — 8,264 9,101 9,059 9,046 2023 — — 8,498 9,104 9,079 2024 — — — 7,826 8,329 2025 — — — — 7,121 Total $ 40,802 All outstanding liabilities before 2021, net of recoverables 11 Liabilities for claims and claim adjustment expenses, net of recoverables $ 597 Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2025 1 year 2 years 3 years 4 years 5 years After 5 years Auto insurance – p hysical damage coverage 93.1 % 7.2 % ( 0.5 ) % ( 0.2 ) % — % 0.4 % 136 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Homeowners insurance ($ in millions, except number of reported claims) Incurred claims and allocated claim adjustment expenses, net of recoverables IBNR reserves plus expected development on reported claims Cumulative number of reported claims (in thousands) For the years ended December 31, Prior year reserve reestimates As of December 31, 2025 (unaudited) (unaudited) (unaudited) (unaudited) Accident year 2021 2022 2023 2024 2025 2021 $ 6,318 $ 6,465 $ 6,522 $ 6,563 $ 6,510 $ ( 53 ) $ 55 999 2022 — 6,562 6,515 6,488 6,516 28 169 795 2023 — — 9,097 8,626 8,525 ( 101 ) 320 1,033 2024 — — — 8,608 8,657 49 710 1,091 2025 — — — — 8,929 2,715 819 Total $ 39,137 $ ( 77 ) Reconciliation to total prior year reserve reestimates recognized by line Prior year reserve reestimates for pre-2021 accident years 27 Prior year reserve reestimates for ULAE 34 Other — Total prior year reserve reestimates $ ( 16 ) Cumulative paid claims and allocated claims adjustment expenses, net of recoverables For the years ended December 31, (unaudited) (unaudited) (unaudited) (unaudited) Accident year 2021 2022 2023 2024 2025 2021 $ 4,464 $ 6,060 $ 6,294 $ 6,409 $ 6,455 2022 — 3,910 5,961 6,231 6,347 2023 — — 5,798 7,830 8,205 2024 — — — 5,753 7,947 2025 — — — — 6,214 Total $ 35,168 All outstanding liabilities before 2021, net of recoverables 153 Liabilities for claims and claim adjustment expenses, net of recoverables $ 4,122 Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2025 1 year 2 years 3 years 4 years 5 years After 5 years Homeowners insurance 66.5 % 26.3 % 4.0 % 1.8 % 0.7 % 0.7 % The Allstate Corporation 137 2025 Form 10-K Notes to Consolidated Financial Statements Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense ($ in millions) As of December 31, 2025 Net outstanding liabilities Allstate Protection Auto insurance - liability coverage $ 21,521 Auto insurance - physical damage coverage 597 Homeowners insurance 4,122 Other personal lines 2,664 Commercial lines 1,133 Other business lines 93 Protection Services 60 Run-off Property-Liability (1) 1,326 ULAE 1,551 Other — Net reserve for property and casualty insurance claims and claims expense 33,067 Recoverables Allstate Protection Auto insurance - liability coverage 6,301 Auto insurance - physical damage coverage 18 Homeowners insurance 679 Other personal lines 204 Commercial lines 231 Other business lines 14 Protection Services 12 Run-off Property-Liability 419 ULAE 134 Total recoverables 8,012 Gross reserve for property and casualty insurance claims and claims expense $ 41,079 (1) Run-off Property-Liability includes business in run-off with most of the claims related to accident years more than 40 years ago. IBNR reserves represent $ 761 million of the total reserves as of December 31, 2025. 138 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Note 11 Reinsurance and Indemnification Effects of reinsurance and indemnification on property and casualty premiums written and earned and accident and health insurance premiums and contract charges For the years ended December 31, ($ in millions) 2025 2024 2023 Property and casualty insurance premiums written Direct $ 64,596 $ 60,574 $ 54,632 Assumed 385 352 396 Ceded ( 2,429 ) ( 2,203 ) ( 2,018 ) Property and casualty insurance premiums written, net of recoverables $ 62,552 $ 58,723 $ 53,010 Property and casualty insurance premiums earned Direct $ 62,511 $ 58,221 $ 52,301 Assumed 389 377 358 Ceded ( 2,397 ) ( 2,210 ) ( 1,989 ) Property and casualty insurance premiums earned, net of recoverables $ 60,503 $ 56,388 $ 50,670 Accident and health insurance premiums and contract charges Direct $ 1,188 $ 1,945 $ 1,865 Assumed 42 26 28 Ceded ( 284 ) ( 50 ) ( 47 ) Accident and health insurance premiums and contract charges, net of recoverables (1) $ 946 $ 1,921 $ 1,846 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) For the years ended December 31, 2025 2024 2023 Property and casualty insurance claims and claims expense (2) $ ( 1,348 ) $ ( 1,716 ) $ ( 633 ) Accident, health and other policy benefits (1) ( 254 ) ( 36 ) ( 44 ) (1) Includes group health business sold through reinsurance to Nationwide Life Insurance Company. (2) 2025 includes ceded losses to the Nationwide Reinsurance Program for the California wildfires. Reinsurance and indemnification recoverables, net As of December 31, ($ in millions) 2025 2024 Property and casualty Paid and due from reinsurers and indemnitors $ 267 $ 285 Unpaid losses estimated (including IBNR) 8,012 8,602 Total property and casualty $ 8,279 $ 8,887 Accident and health insurance 222 37 Total $ 8,501 $ 8,924 Rollforward of credit loss allowance for reinsurance recoverables For the years ended December 31, ($ in millions) 2025 2024 Property and casualty (1) (2) Beginning balance $ ( 63 ) $ ( 62 ) Increase in the provision for credit losses ( 1 ) ( 1 ) Write-offs 10 — Ending balance $ ( 54 ) $ ( 63 ) (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. The Allstate Corporation 139 2025 Form 10-K Notes to Consolidated Financial Statements Property and casualty reinsurance and indemnifications recoverables Property and casualty programs are grouped by the following characteristics: 1. Indemnification programs - industry pools, facilities or associations that are governed by state insurance statutes or regulations or the federal government. 2. Catastrophe reinsurance programs - reinsurance protection for catastrophe exposure nationwide and by specific states, as applicable. 3. Other reinsurance programs - reinsurance protection for asbestos, environmental and other liability exposures as well as commercial lines, including the shared economy program currently in run-off. The Company purchases reinsurance after evaluating the financial condition of the reinsurer as well as the terms and price of coverage. Indemnification programs The Company participates in state-based industry pools or facilities mandating participation by insurers offering certain coverage in their state, including the Michigan Catastrophic Claims Association (“MCCA”), the New Jersey Property-Liability Insurance Guaranty Association (“PLIGA”), the North Carolina Reinsurance Facility (“NCRF”) and the Florida Hurricane Catastrophe Fund (“FHCF”). When the Company pays qualifying claims under the coverage indemnified by a state’s pool or facility, the Company is reimbursed for the qualifying claim losses and expenses. Each state pool or facility may assess participating companies to collect sufficient amounts to meet its total indemnification requirements. The enabling legislation for each state’s pool or facility compels the pool or facility only to indemnify participating companies for qualifying claim losses and expenses; the state pool or facility does not underwrite the coverage or take on the ultimate risk of the indemnified business. As a pass through, these pools or facilities manage the receipt of assessments paid by participating companies and payment of indemnified amounts for covered claims presented by participating companies. The Company has not had any credit losses related to these indemnification programs. State-based industry pools or facilities Michigan Catastrophic Claims Association The MCCA is a statutory indemnification mechanism for member insurers’ qualifying Personal Injury Protection (“PIP”) claims paid for the unlimited lifetime medical benefits above the applicable retention level for qualifying injuries from automobile, motorcycle and commercial vehicle accidents. Indemnification recoverables on paid and unpaid claims, including IBNR, as of December 31, 2025 and 2024 include $ 5.83 billion and $ 6.48 billion, respectively, from the MCCA for its indemnification obligation. The MCCA is funded by annually assessing participating member companies actively writing motor vehicle coverage in Michigan on a per vehicle basis. The MCCA’s calculation of the annual assessment is based upon the total of members’ actuarially determined present value of expected payments on lifetime claims by all persons expected to be catastrophically injured in that year and ultimately qualify for MCCA reimbursement, its operating expenses, and adjustments for the amount of excesses or deficiencies in prior assessments. The assessment is incurred by the Company as policies are written and recovered as a component of premiums from the Company’s customers. The MCCA indemnifies qualifying claims of all current and former member companies (whether or not actively writing motor vehicle coverage in Michigan) for qualifying claims and claims expenses incurred while the member companies were actively writing the mandatory PIP coverage in Michigan. Member companies actively writing automobile coverage in Michigan include the MCCA annual assessments in determining the level of premiums to charge insureds in the state. As required for member companies by the MCCA, the Company reports covered paid and unpaid claims to the MCCA when estimates of loss for a reported claim are expected to exceed the retention level, the claims involve certain types of severe injuries, or there are litigation demands received suggesting the claim value exceeds certain thresholds. The retention level is adjusted upward every other MCCA fiscal year by the lesser of 6 % or the increase in the consumer price index. The retention level is $ 675 thousand per claim for the fiscal two-years ending June 30, 2027 compared to $ 635 thousand per claim for the fiscal two-years ending June 30, 2025. The MCCA is obligated to fund the ultimate liability of member companies’ qualifying claims and claim expenses. The MCCA does not underwrite the insurance coverage or hold any underwriting risk. The MCCA indemnifies members as qualifying claims are paid and billed by members to the MCCA. Unlimited lifetime covered losses result in significant levels of ultimate incurred claim reserves being recorded by member companies along with offsetting indemnification recoverables. Disputes with claimants over coverage on certain reported claims can result in additional losses, which may be recoverable from the MCCA, excluding litigation expenses. The MCCA annual assessments fund current operations, member company reimbursements and any deficit. The MCCA prepares statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the State of Michigan Department of Insurance and Financial Services (“MI DOI”). The MI DOI has granted the MCCA a statutory permitted practice that expires on June 30, 2028 to discount its liabilities for loss and loss adjustment expense. As of June 30, 2025, the date of its most recent annual financial report, the MCCA had cash and invested assets of $ 23.19 billion and an accumulated deficit of $ 1.76 billion. The permitted practice reduced the accumulated deficit by $ 50.00 billion. 140 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements New Jersey Property-Liability Insurance Guaranty Association PLIGA serves as the statutory administrator of the Unsatisfied Claim and Judgment Fund (“UCJF”), Workers’ Compensation Security Fund and the New Jersey Surplus Lines Insurance Guaranty Fund. In addition to its insolvency protection responsibilities, PLIGA reimburses insurers for unlimited excess medical benefits (“EMBs”) paid in connection with PIP claims in excess of $ 75,000 for policies issued or renewed prior to January 1, 1991, and limited EMB claims in excess of $ 75,000 and capped at $ 250,000 for policies issued or renewed on or after January 1, 1991, to December 31, 2003. The amounts of paid and unpaid recoverables as of December 31, 2025 and 2024 were $ 347 million and $ 370 million, respectively. PLIGA annually assesses all admitted property and casualty insurers writing covered lines in New Jersey for PLIGA indemnification and expenses. PLIGA assessments may be recouped as a surcharge on premiums collected. PLIGA does not ultimately retain underwriting risk as it assesses member companies for their expected qualifying losses to provide funding for payment of its indemnification obligation to member companies for their actual losses. As a pass through, PLIGA facilitates these transactions of receipt of assessments paid by member companies and payment to member companies for covered claims presented by them for indemnification. Assessments paid by the Company to PLIGA for the EMB program totaled $ 8 million in 2025. As of December 31, 2024, the date of its most recent annual financial report, PLIGA had a fund balance of $ 299 million. North Carolina Reinsurance Facility The NCRF provides automobile liability insurance to drivers that private market insurers are not otherwise willing to insure. All insurers licensed to write automobile insurance in North Carolina are members of the NCRF. Premiums, losses and expenses are assigned to the NCRF. North Carolina law allows the NCRF to recoup operating losses for certain insureds through a surcharge to policyholders. As of September 30, 2025, the NCRF reported $ 526 million in members’ equity. The NCRF implemented a recoupment surcharge on all private passenger and commercial fleet policies effective October 1, 2025, through September 30, 2026. The NCRF results are shared by the member companies in proportion to their respective North Carolina automobile liability writings. As of December 31, 2025, our NCRF recoverables on paid claims was $ 74 million and recoverables on unpaid claims was $ 371 million. Paid recoverable balances, if covered, are typically settled within sixty days of monthly filing. Florida Hurricane Catastrophe Fund Allstate subsidiaries Castle Key Insurance Company (“CKIC”) and Castle Key Indemnity Company (together with CKIC, “Castle Key”), Integon National Insurance Company and Century-National Insurance Company participate in the mandatory coverage provided by the FHCF and therefore have access to reimbursement for certain qualifying Florida hurricane losses from the FHCF. The companies have exposure to assessments and pay annual premiums to the FHCF for this reimbursement protection. The FHCF has the authority to issue bonds to pay its obligations to participating insurers in excess of its capital balances. Payment of these bonds is funded by emergency assessments on all property and casualty premiums in the state, except workers’ compensation, medical malpractice, accident and health insurance and policies written under the National Flood Insurance Program (“NFIP”). The FHCF emergency assessments are limited to 6 % of premiums per year beginning the first year in which reimbursements require the issuance of a revenue bond, and up to a total of 10 % of premiums per year for assessments in the second and subsequent years, if required to fund additional bonds. The FHCF has not issued an emergency assessment since 2015. Annual premiums ceded to the FHCF were $ 18 million, $ 23 million and $ 28 million in 2025, 2024 and 2023, respectively. Qualifying losses were $( 28 ) million in 2025 due to a reduction in the expected recoveries for Hurricane Ian, $( 1 ) million in 2024 including final settlements related to Hurricane Michael recoveries and $( 6 ) million in 2023 including final settlements related to Hurricane Irma recoveries. For qualifying losses to personal lines property in Florida caused by storms the National Hurricane Center declares to be hurricanes, the Florida Program has three mandatory FHCF inuring contracts providing a combined $ 173 million of limits, 90 % placed. Additionally, the National General Lender Services Standalone Program has one FHCF inuring contract that provides $ 97 million of limits in excess of a $ 51 million retention, 90 % placed. T he amounts recoverable from the FHCF totaled $ 29 million and $ 73 million as of December 31, 2025 and 2024, respectively. Federal Government - National Flood Insurance Program 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. As of September 30, 2025, the NFIP owes $ 22.5 billion to the U.S. Treasury. On February 3, 2026, the president signed legislation passed by Congress that extends the NFIP authorization until September 30, 2026. Should authorization lapse, existing policies remain valid, but insurance companies operating on behalf of the NFIP may not enter into new flood insurance contracts. The The Allstate Corporation 141 2025 Form 10-K Notes to Consolidated Financial Statements 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. The amounts recoverable as of December 31, 2025 and 2024 were $ 22 million and $ 279 million, respectively. Annual premiums ceded to NFIP include $ 409 million, $ 368 million and $ 327 million in 2025, 2024 and 2023, respectively. Qualifying losses incurred that are ceded to NFIP include $ 111 million, $ 618 million and $ 102 million in 2025, 2024 and 2023, respectively. Catastrophe reinsurance The Company’s reinsurance program is designed to provide reinsurance protection for catastrophes resulting from multiple perils including hurricanes, windstorms, hail, tornadoes, winter storms, wildfires, earthquakes and fires following earthquakes. • The Company purchases reinsurance from traditional reinsurance companies as well as the insurance-linked securities (“ILS”) market. • The majority of the Company’s program comprises multi-year contracts, primarily placed in the traditional reinsurance market, such that generally one-third of the program is renewed every year. • Coverage is generally purchased on a broad geographic, product line and multiple peril loss basis. • Florida personal lines property is covered by separate agreements, as the risk of loss is different and the Company’s subsidiaries operating in this state are separately capitalized. The Company’s current catastrophe reinsurance program utilizes the Company’s risk and return framework which is intended to provide shareholders with long-term returns on the risks assumed in the property business, reduce earnings volatility and provide protection to customers. This framework incorporates the Company’s robust economic capital model and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires. The Company monitors risk both in the aggregate and by peril, while also evaluating model performance relative to experience and its expectations of catastrophe risk trends. As of December 31, 2025, the modeled 1-in-100 probable maximum loss for hurricane, earthquake and wildfire perils is approximately $ 3.1 billion, net of reinsurance. The Company continually reviews its aggregate risk appetite and the cost and availability of reinsurance to optimize the risk and return profile of this exposure. The following catastrophe reinsurance agreements are in effect as of December 31, 2025. The Nationwide Excess Catastrophe Reinsurance Program (the “Nationwide Program”) provides per occurrence coverage to protect against a large single event up to $ 9.51 billion of loss less a $ 1.00 billion retention and is subject to the percentage of reinsurance placed in each of its agreements. It also provides aggregate coverage to protect against an aggregation of losses from multiple events up to $ 500 million for catastrophe loss events in excess of a deductible of $ 50 million per event with $ 56 million of limit utilized by expected recoveries. Property business in the state of Florida is excluded from this program. Separate reinsurance agreements address the distinct needs of separately capitalized legal entities. The Nationwide Program includes reinsurance agreements with both the traditional and ILS markets as described below: • Core traditional market multi-year and per occurrence agreements provide $ 6.08 billion of placed limits for losses from a large single catastrophe event and are comprised of the following: – Contracts providing combined $ 3.24 billion of placed limits for a large single catastrophe event exhausting at $ 4.25 billion, with one annual reinstatement. – Three multi-year contracts providing combined $ 336 million of placed limits with two of the contracts providing one reinstatement of limits over each contract’s term. – Five single-year contracts providing combined $ 2.50 billion of placed limits filling capacity around the multi-year and ILS placements, with two contracts providing one reinstatement of limits. • ILS placements provide $ 2.70 billion of placed limits, with no reinstatement of limits, and are comprised of the following: – Ten contracts providing occurrence coverage of $ 2.20 billion of placed limits, reinsuring losses in all states except Florida caused by named storms, earthquakes and fire following earthquakes, severe weather, wildfires, and other naturally occurring or man-made events determined to be a catastrophe by the Company. – One contract providing occurrence and aggregate coverage of $ 175 million of placed limits, also provides that for each annual period beginning April 1, Allstate declared catastrophes to personal lines property and automobile business can be aggregated to erode the aggregate retention and qualify for coverage under the aggregate limits. Recoveries are limited to the ultimate net loss from the reinsured event. – Two contracts, providing aggregate coverage of $ 325 million of placed limits, with $ 56 million of limit utilized by expected recoveries. Florida Program Our 2025 Florida Program provides coverage for property policies of CKIC and certain affiliate companies for Florida catastrophe events up to $ 1.10 billion of loss less a $ 30 million retention. This includes coverage for events up to $ 951 million of loss less a $ 30 million retention, in 142 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements addition to the FHCF which provides a combined placed limit of $ 156 million. The Florida Program includes reinsurance agreements placed in the traditional market, the FHCF and the ILS market as follows: • For qualifying losses to personal lines property in Florida caused by storms the National Hurricane Center declares to be hurricanes, the Florida Program has three mandatory FHCF inuring contracts providing a combined $ 173 million of limits, 90 % placed. • Traditional market placements comprise reinsurance limits for losses to personal lines property in Florida arising out of multiple perils including those not covered by the FHCF contracts. One contract provides combined $ 405 million of placed limit with one automatic reinstatement of limits with premium due, while a separate contract provides coverage to partially offset these reinstatement premiums. An additional contract provides $ 66 million of reinsurance limit for a second event. • ILS placements provide $ 516 million of placed limits for qualifying losses to personal lines property in Florida caused by a named storm event, a severe weather event, an earthquake event, a fire event, a volcanic eruption event, or a meteorite impact event. National General Lender Services Standalone Program is placed in the traditional market and provides $ 410 million of placed limits, subject to a $ 90 million retention, with one automatic reinstatement of limits. Inuring contracts include the National General FHCF contract providing $ 97 million of limits in excess of a $ 51 million retention, 90 % placed. U.S. Homeowners Aggregate A seven -month duration aggregate contract was placed with a risk period of June 1, 2025 to December 31, 2025. This contract provided $ 325 million of placed limit in excess of a $ 3.50 billion retention for US Homeowners catastrophe events, including the state of Florida. Inuring contracts included the Florida Program and National General Lender Services Standalone Program. National General Flood Excess of Loss Reinsurance Contract provides $ 50 million of placed limits, subject to a $ 20 million retention, with one automatic reinstatement of limits. Kentucky Earthquake Excess Catastrophe Reinsurance Contract is placed in the traditional market and provides $ 28 million of placed limits, subject to a $ 2 million retention with one reinstatement of limits. Canada Catastrophe Excess of Loss Reinsurance Contract is placed in the traditional market and provides CAD 478 million of placed limits, subject to a CAD 100 million retention, with one reinstatement of limits. The Company has not experienced credit losses on its catastrophe reinsurance programs. The total cost of the property catastrophe reinsurance program was $ 1.23 billion, $ 1.11 billion and $ 1.02 billion in 2025, 2024 and 2023, respectively. Other reinsurance programs The Company’s other reinsurance programs relate to commercial lines and asbestos, environmental and other liability exposures. The largest reinsurance recoverable balance the Company had outstanding was $ 156 million and $ 175 million from Lloyd’s of London as of December 31, 2025 and 2024, respectively. The Allstate Corporation 143 2025 Form 10-K Notes to Consolidated Financial Statements Note 12 Capital Structure Debt includes senior notes, senior debentures, subordinated debentures and junior subordinated debentures issued by the Corporation. The Company classifies any borrowings which have a maturity of twelve months or less at inception as short-term debt. As of December 31, 2025 and 2024, the Company did not have any short-term borrowings. Total debt outstanding As of December 31, ($ in millions) 2025 2024 0.750 % Senior Notes, due 2025 (1) $ — $ 600 3.280 % Senior Notes, due 2026 (1) 550 550 5.050 % Senior Notes, due 2029 (1) 500 500 1.450 % Senior Notes, due 2030 (1) 600 600 Due in one year through five years 1,650 2,250 6.125 % Senior Notes, due 2032 (1) 159 159 5.250 % Senior Notes due 2033 (1) 750 750 5.350 % Senior Notes due 2033 (1) 323 323 5.550 % Senior Notes due 2035 (1) 546 546 Due after five years through ten years 1,778 1,778 5.950 % Senior Notes, due 2036 (1) 386 386 6.900 % Senior Debentures, due 2038 165 165 5.200 % Senior Notes, due 2042 (1) 62 62 4.500 % Senior Notes, due 2043 (1) 500 500 4.200 % Senior Notes, due 2046 (1) 700 700 3.850 % Senior Notes, due 2049 (1) 500 500 Floating Rate Subordinated Debentures, due 2053 500 500 Floating Rate Subordinated Debentures, due 2053 800 800 6.500 % Junior Subordinated Debentures, due 2067 500 500 Due after ten years 4,113 4,113 Long-term debt total principal 7,541 8,141 Debt issuance costs (2) ( 51 ) ( 56 ) Total debt $ 7,490 $ 8,085 (1) Senior Notes are subject to redemption at the Company’s option in whole or in part at any time at the greater of either 100 % of the principal amount plus accrued and unpaid interest to the redemption date or the discounted sum of the present values of the remaining scheduled payments of principal and interest and accrued and unpaid interest to the redemption date. (2) Unamortized debt issuance costs are reported in debt and are amortized over the expected period the debt will remain outstanding. Debt maturities Debt maturities for each of the next five years and thereafter (excluding issuance costs and other) ($ in millions) 2026 $ 550 2027 — 2028 — 2029 500 2030 600 Thereafter 5,891 Total long-term debt principal $ 7,541 Repayment of debt On December 15, 2025, the Company repaid, at maturity, $ 600 million of 0.75 % Senior Notes. Subordinated Debentures The Subordinated Debentures may be redeemed in whole at any time or in part from time to time at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the Subordinated Debentures are not redeemed in whole, at least $ 25 million aggregate principal amount must remain outstanding. Interest on the $ 500 million Subordinated Debentures is payable quarterly at the annual rate equal to the three-month SOFR plus 3.427 % and interest on the $ 800 million Subordinated Debentures is payable quarterly at an annual rate equal to the three-month SOFR plus 3.200 %. Junior Subordinated Debentures As of December 31, 2025, the Company had outstanding $ 500 million of Series A 6.500 % Fixed-to-Floating Rate Junior Subordinated Debentures (“Junior Subordinated Debentures”). The scheduled maturity date for the Debentures is May 15, 2057 with a final maturity date of May 15, 2067. The Junior Subordinated Debentures may be redeemed (i) in whole or in part, at any time on or after May 15, 2037 at the principal amount plus accrued and unpaid interest to the date of redemption, or (ii) in certain circumstances, in whole or in part, prior 144 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements to May 15, 2037 at the principal amount plus accrued and unpaid interest to the date of redemption or, if greater, a make-whole price. Interest on the Junior Subordinated Debentures is payable semi-annually at the stated fixed annual rate to May 15, 2037, and then payable quarterly at an annual rate equal to the CME Term SOFR Reference Rate published for a three-month tenor plus a spread adjustment of 0.26161 %. The Company may elect at one or more times to defer payment of interest on the Junior Subordinated Debentures for one or more consecutive interest periods that do not exceed 10 years. Interest compounds during such deferral periods at the rate in effect for each period. The interest deferral feature obligates the Company in certain circumstances to issue common stock or certain other types of securities if it cannot otherwise raise sufficient funds to make the required interest payments. The Company has reserved 75 million shares of its authorized and unissued common stock to satisfy this obligation. The terms of the Subordinated Debentures and Junior Subordinated Debentures prohibit the Company from declaring or paying any dividends or distributions on common or preferred stock or redeeming, purchasing, acquiring, or making liquidation payments on common stock or preferred stock if the Company has elected to defer interest payments on the Subordinated Debentures or Junior Subordinated Debentures, respectively, subject to certain limited exceptions. In connection with the issuance of the Junior Subordinated Debentures, the Company entered into a replacement capital covenant (“RCC”). This covenant was not intended for the benefit of the holders of the Junior Subordinated Debentures and could not be enforced by them. Rather, it was for the benefit of holders of one or more other designated series of the Company’s indebtedness (“covered debt”), currently the $ 800 million Floating Rate Subordinated Debentures due in 2053. Pursuant to the RCC, the Company has agreed that it will not repay, redeem, or purchase the Junior Subordinated Debentures on or before May 15, 2067 (or such earlier date on which the RCC terminates by its terms) unless, subject to certain limitations, the Company has received net cash proceeds in specified amounts from the sale of common stock or certain other qualifying securities. The promises and covenants contained in the RCC will not apply if (i) S&P upgrades the Company’s issuer credit rating to A or above, (ii) the Company redeems the Junior Subordinated Debentures due to a tax event, (iii) after notice of redemption has been given by the Company and a market disruption event occurs preventing the Company from raising proceeds in accordance with the RCC, or (iv) the Company repurchases or redeems up to 10 % of the outstanding principal of the Junior Subordinated Debentures in any one-year period, provided that no more than 25 % will be so repurchased, redeemed or purchased in any ten-year period. The RCC terminates in 2067. The RCC will terminate prior to its scheduled termination date if (i) the Junior Subordinated Debentures are no longer outstanding and the Company has fulfilled its obligations under the RCC or it is no longer applicable, (ii) the holders of a majority of the then-outstanding principal amount of the then-effective series of covered debt consent to agree to the termination of the RCC, (iii) the Company does not have any series of outstanding debt that is eligible to be treated as covered debt under the RCC, (iv) the Junior Subordinated Debentures are accelerated as a result of an event of default, (v) certain rating agency or change in control events occur, (vi) S&P, or any successor thereto, no longer assigns a solicited rating on senior debt issued or guaranteed by the Company, or (vii) the termination of the RCC would have no effect on the equity credit provided by S&P with respect to the Junior Subordinated Debentures. An event of default, as defined by the supplemental indenture, includes default in the payment of interest or principal and bankruptcy proceedings. Other capital resources To manage short-term liquidity, the Company maintains a commercial paper program with a borrowing capacity up to $ 750 million. In addition, the Company has access to an unsecured revolving credit facility agreement with a borrowing limit of $ 750 million. The maturity date is November 2027. This facility contains an increase provision that would allow up to an additional $ 500 million of borrowing. This facility has a financial covenant requiring the Company not to exceed a 37.5 % debt to capitalization ratio as defined in the agreement. Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of the Company’s senior unsecured, unguaranteed long-term debt. The total amount outstanding at any point in time under the combination of the commercial paper program and the credit facility cannot exceed the amount that can be borrowed under the credit facility. As of December 31, 2025 or 2024, there were no balances outstanding for the credit facility or the commercial paper facility. The Company paid $ 395 million, $ 395 million and $ 355 million of interest on debt in 2025, 2024 and 2023, respectively. The Company had $ 258 million and $ 215 million of investment-related debt that is reported in other liabilities and accrued expenses as of December 31, 2025 and 2024, respectively. The Company has access to a universal shelf registration statement with the SEC that was filed on April 30, 2024 and expires in 2027. The registration statement covers an unspecified amount of debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units. Common stock The Company had 900 million shares of issued common stock of which 260 million shares were outstanding and 640 million shares were held in treasury as of December 31, 2025. In 2025, the The Allstate Corporation 145 2025 Form 10-K Notes to Consolidated Financial Statements Company acquired 6 million shares and reissued 1 million net shares under equity incentive plans. Preferred stock All outstanding preferred stock represents noncumulative perpetual preferred stock with a $ 1.00 par value per share and a liquidation preference of $ 25,000 per share. Total preferred stock outstanding As of December 31, Aggregate liquidation preference ($ in millions) Dividend per depository share (1) Aggregate dividend payment ($ in millions) 2025 2024 2025 2024 Dividend rate 2025 2024 2023 2025 2024 2023 Series G (2) — — $ — $ — 5.625 % $ — $ — $ 0.70 $ — $ — $ 16 (3) Series H 46,000 46,000 1,150.0 1,150.0 5.100 1.28 1.28 1.28 59 59 59 Series I 12,000 12,000 300.0 300.0 4.750 1.19 1.19 1.19 14 14 14 Series J 24,000 24,000 600.0 600.0 7.375 1.84 1.84 0.75 44 44 18 Total 82,000 82,000 $ 2,050 $ 2,050 $ 117 $ 117 $ 107 (1) Each depository share represents a 1/1,000 th interest in a share of preferred stock. (2) On April 17, 2023, the Company redeemed all outstanding shares of Preferred Stock Series G. (3) Excludes $ 18 million related to original issuance costs in preferred stock dividends on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Equity as a result of the preferred stock redemption. The preferred stock ranks senior to the Company’s common stock with respect to the payment of dividends and liquidation rights. The Company will pay dividends on the preferred stock on a noncumulative basis only when, as and if declared by the Company’s board of directors (or a duly authorized committee of the board) and to the extent that the Company has legally available funds to pay dividends. If dividends are declared on the preferred stock, they will be payable quarterly in arrears at an annual fixed rate. Dividends on the preferred stock are not cumulative. Accordingly, in the event dividends are not declared on the preferred stock for payment on any dividend payment date, then those dividends will cease to be payable. If the Company has not declared a dividend before the dividend payment date for any dividend period, the Company has no obligation to pay dividends for that dividend period, whether or not dividends are declared for any future dividend period. No dividends may be paid or declared on the Company’s common stock and no shares of the Company’s common stock may be repurchased unless the full dividends for the latest completed dividend period on the preferred stock have been declared and paid or provided for. The preferred stock does not have voting rights except with respect to certain changes in the terms of the preferred stock, in the case of certain dividend nonpayment, certain other fundamental corporate events, mergers or consolidations and as otherwise provided by law. If and when dividends have not been declared and paid in full for at least six quarterly dividend periods or their equivalent (whether or not consecutive), the authorized number of directors then constituting the Company’s board of directors will be increased by two . The holders of the preferred stock, together with the holders of all other affected classes and series of voting parity stock, voting as a single class, will be entitled to elect the two additional members of the board of directors of the Company, subject to certain conditions. The board of directors shall at no time have more than two preferred stock directors. The preferred stock is perpetual and has no maturity date. The preferred stock is redeemable at the Company’s option in whole or in part, on or after October 15, 2024 for Series H, January 15, 2025 for Series I and July 15, 2028 for Series J at a redemption price of $ 25,000 per share, plus declared and unpaid dividends. Prior to July 15, 2028 for Series J, the preferred stock is redeemable at the Company’s option, in whole but not in part, within 90 days after the occurrence of certain regulatory capital events at a redemption price equal to $ 25,000 per share or within 90 days after the occurrence of a certain rating agency event at a redemption price equal to $ 25,500 per share, plus declared and unpaid dividends. Note 13 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 Consolidated Statements of Operations as restructuring and related charges and totaled $ 61 146 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements million, $ 61 million and $ 169 million in 2025, 2024 and 2023, respectively. Restructuring expenses in 2025 primarily relate 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 54 4 58 Adjustments to liability 3 — 3 Payments and non-cash charges ( 62 ) ( 3 ) ( 65 ) Restructuring liability as of December 31, 2025 $ 20 $ 3 $ 23 As of December 31, 2025, the cumulative amount incurred to date for active programs related to employee severance and relocation benefits expenses totaled $ 72 million. Note 14 Commitments, Guarantees and Contingent Liabilities Leases The Company has certain operating leases for office facilities, computer and office equipment, and vehicles. The Company’s leases have remaining lease terms of generally 1 year to 10 years which could include options to extend or terminate that varies across agreements. The Company determines if an arrangement is a lease at inception. Leases with an initial term less than one year are not recorded on the balance sheet and the lease costs for these leases are recorded as an expense on a straight-line basis over the lease term. Operating leases with terms greater than one year result in a lease liability recorded in other liabilities and accrued expenses with a corresponding right-of-use (“ROU”) asset recorded in other assets on the Consolidated Statements of Financial Position. As of December 31, 2025 and 2024, the Company had $ 184 million and $ 235 million in lease liabilities and $ 154 million and $ 165 million in ROU assets, respectively. Operating lease liabilities are recognized at the commencement date based on the present value of future minimum lease payments over the lease term. ROU assets are recognized based on the corresponding lease liabilities adjusted for qualifying initial direct costs, prepaid or accrued lease payments and unamortized lease incentives. As most of the Company’s leases do not disclose the implicit interest rate, the Company uses collateralized incremental borrowing rates based on information available at lease commencement when determining the present value of future lease payments. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease. Lease terms may include options to extend or terminate the lease which are incorporated into the Company’s measurements when it is reasonably certain that the Company will exercise the option. Operating lease costs are recognized on a straight-line basis over the lease term and include interest expense on the lease liability and amortization of the ROU asset. Variable lease costs are expensed as incurred and include maintenance costs and real estate taxes. Lease costs are reported in operating costs and expenses and totaled $ 91 million, $ 92 million and $ 102 million, including $ 9 million, $ 14 million and $ 19 million of variable lease costs in 2025, 2024 and 2023, respectively. Other information related to operating leases December 31, 2025 2024 Weighted average remaining lease term (years) 4 4 Weighted average discount rate 4.41 % 4.17 % Maturity of lease liabilities ($ in millions) Operating leases 2026 $ 67 2027 54 2028 32 2029 22 2030 14 Thereafter 11 Total lease payments $ 200 Less: interest ( 16 ) Present value of lease liabilities $ 184 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 and underwriting results related to these arrangements tend to be adverse. Because of the Company’s participation, it may be exposed to The Allstate Corporation 147 2025 Form 10-K Notes to Consolidated Financial Statements losses that surpass the capitalization of these facilities or assessments from these facilities. Florida Citizens Castle Key is subject to assessments from Citizens Property Insurance Corporation in the state of Florida (“FL Citizens”), which was initially created by the state of Florida to provide insurance to eligible property owners unable to obtain coverage in the private insurance market. FL Citizens, at the discretion and direction of its Board of Governors, may levy assessments if a deficit occurs in any calendar year. FL Citizens can impose a surcharge of up to 15 % of premiums on its own policyholders to address a deficit in the Citizens Account. If a deficit remains after applying the policyholder surcharge, FL Citizens may levy an emergency assessment of up to 10 % per year on all assessable premiums statewide until the deficit is eliminated. Companies are required to collect the emergency assessments directly from residential property policyholders and remit to FL Citizens as collected. Currently, the emergency assessment is zero for all policies issued or renewed on or after July 1, 2015. Louisiana Citizens Louisiana Citizens Property Insurance Corporation (“LA Citizens”) can levy a regular assessment on participating companies for a deficit in any calendar year up to a maximum of the greater of 10 % of the calendar year deficit or 10 % of Louisiana direct property premiums industry-wide for the prior calendar year. If the plan year deficit exceeds the amount that can be recovered through regular assessments, LA Citizens may fund the remaining deficit by issuing revenue assessment bonds in the capital markets. LA Citizens then declares emergency assessments each year to provide debt service on the bonds until they are retired. Companies writing assessable lines must surcharge their policyholders emergency assessments in the percentage established annually by LA Citizens and must remit amounts collected to the bond trustee on a quarterly basis. Emergency assessments to pay off bonds issued in 2007 for the hurricanes of 2005 continued through April 1, 2025 when LA Citizens terminated the 1.36 % emergency assessment. No emergency assessments apply to policies effective on or after that date. Additionally, beginning January 1, 2025, LA Citizens implemented a temporary three-year waiver of its 10 % Citizens surcharge on new and renewal policies to improve affordability. Facilities such as FL Citizens and LA Citizens are generally designed so that the ultimate cost is borne by policyholders; however, the exposure to assessments from these facilities and the availability of recoupments or premium rate increases may not offset each other in the Company’s financial statements. Moreover, even if they do offset each other, they may not offset each other in financial statements for the same fiscal period due to the ultimate timing of the assessments and recoupments or premium rate increases, as well as the possibility of policies not being renewed in subsequent years. California Earthquake Authority Exposure to certain potential losses from earthquakes in California is limited by the Company’s participation in the California Earthquake Authority (“CEA”), which provides insurance for California earthquake losses. The CEA is a privately financed, publicly managed state agency created to provide insurance coverage for earthquake damage. Insurers selling homeowners insurance in California are required to offer earthquake insurance to their customers either through their company or by participation in the CEA. The Company’s homeowners policies continue to include coverages for losses caused by explosions, theft, glass breakage and fires following an earthquake, which are not underwritten by the CEA. As of September 30, 2025, the CEA’s capital balance was approximately $ 6.3 billion. Should losses arising from an earthquake cause a deficit in the CEA, an additional $ 2.7 billion would be obtained from the proceeds of revenue bonds the CEA may issue, an existing $ 7.7 billion reinsurance layer, $ 1.0 billion from policy surcharges, and finally, if needed, assessments on participating insurance companies. Participating insurers are required to pay an assessment, currently estimated not to exceed $ 1.7 billion, if the capital of the CEA falls below $ 350 million. Within the limits previously described, the assessment could be intended to restore the CEA’s capital to a level of $ 350 million. There is no provision that allows insurers to recover assessments through a premium surcharge or other mechanism. The CEA’s projected aggregate claim paying capacity is $ 19.3 billion as of September 30, 2025, and if an event were to result in claims greater than its capacity, affected policyholders may be paid a prorated portion of their covered losses, paid on an installment basis, or no payments may be made if the claim paying capacity of the CEA is insufficient. All future assessments on participating CEA insurers are based on their share of the total CEA premiums written as of December 31 of the preceding year. As of December 31, 2025, the Company’s market share was 7.9 %. At the current level, the Company’s maximum possible CEA assessment was $ 131 million during 2025. These amounts are re-evaluated by the board of directors of the CEA on an annual basis. Accordingly, assessments from the CEA for a particular quarter or annual period may be material to the results of operations and cash flows, but not the financial position of the Company. Management believes the Company’s exposure to earthquake losses in California has been significantly reduced as a result of its participation in the CEA. California FAIR Plan Association The California FAIR Plan Association (“FAIR Plan”) is a syndicated fire insurance pool that provides coverage to California homeowners who are unable to find insurance in the voluntary market. FAIR Plan members are all insurers licensed to provide property and casualty insurance coverage in the state of California. Each member participates in the profits, losses and expenses of the FAIR Plan in direct proportion to its market share of business written in the state during the second preceding calendar year. If the FAIR Plan is unable to pay losses during a catastrophe event, it may seek 148 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements regulatory approval to assess member companies based on their market share during the second preceding calendar year. As a result of the January California wildfires, the FAIR Plan received regulatory approval on February 11, 2025 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 prior approval to collect temporary supplemental fees from policyholders in the state in order to recoup amounts assessed. Insurers may seek recoupment for 50 % of their assessment share up to $ 1.00 billion, and 100 % of amounts exceeding that threshold, for both residential and commercial property insurance. In 2025, the Company paid $ 45 million toward the FAIR Plan’s $ 1 billion assessment and has received approval from the California Department of Insurance to recoup 50 % of the amount paid. As of September 30, 2025, the FAIR Plan‘s capital balance was a deficit of $ 444 million. At December 31, 2025, we have accrued for the Company’s share of future estimated assessments based on the January 2025 wildfire event. The Company’s reinsurance program is designed to provide reinsurance protection for catastrophes resulting from multiple perils, including fires. Note 11 includes a summary of the Company’s reinsurance program. Several of the Company’s core traditional markets per occurrence agreements provide for the inclusion of non-recoupable assessments as part of the definition of loss. Effective March 1, 2025 through February 28, 2026, the FAIR Plan’s reinsurance program covers losses up to $ 7.1 billion less retention of $ 1.25 billion with $ 3.46 billion placed with reinsurers. Texas Windstorm Insurance Association The Company participates as a member of the Texas Windstorm Insurance Association (“TWIA”), which provides wind and hail property coverage to coastal risks unable to procure coverage in the voluntary market. Wind and hail coverage is written on a TWIA-issued policy. TWIA follows a funding structure first utilizing currently available funds set aside from current and prior years. Under the current law, to the extent losses exceed premiums received from policyholders, TWIA utilizes a combination of reinsurance, TWIA-issued securities, as well as member and policyholder assessments to fund loss payments. As of December 31, 2025, the Company’s participation rate in TWIA was 12.8 %. Any assessments from TWIA for a particular quarter or annual period may be material to the results of operations and cash flows, but not to the financial position of the Company. North Carolina Joint Underwriters Association The North Carolina Joint Underwriters Association (“NCJUA”) was created to provide property insurance for properties, other than the state’s beach and coastal areas, that insurers are not otherwise willing to insure. All insurers licensed to write property insurance in North Carolina are members of the NCJUA. Premiums, losses and expenses of the NCJUA are shared by the member companies in proportion to their respective North Carolina property insurance writings. Member companies participate in deficits or surpluses based on their participation ratios, which are determined annually. The Company had a $ 14 million receivable from the NCJUA on December 31, 2025 representing its participation in the NCJUA’s surplus of $ 87 million for all open years. North Carolina Insurance Underwriting Association The North Carolina Insurance Underwriting Association (“NCIUA”) provides property insurance, including windstorm coverage, for properties located in the state’s beach and coastal areas that insurers are not otherwise willing to insure. All insurers licensed to write residential and commercial property insurance in North Carolina are members of the NCIUA. Members are assessed in proportion to their North Carolina residential and commercial property insurance writings, which is determined annually and varies by coverage, for plan deficits. As of December 31, 2025, the NCIUA had a surplus of $ 1.60 billion. No member company is entitled to the distribution of any portion of the NCIUA’s surplus. Legislation in 2009 capped insurers’ assessments for losses incurred in any calendar year at $ 1.00 billion. Subsequent to an industry assessment of $ 1.00 billion, if the NCIUA continues to require funding, it may authorize insurers to assess a 10 % catastrophe recovery charge on each property insurance policy statewide to be remitted to the NCIUA. New Jersey Property-Liability Insurance Guaranty Association The New Jersey Property-Liability Insurance Guaranty Association (“PLIGA”) serves as the statutory administrator of the Unsatisfied Claim and Judgment Fund (“UCJF”). As statutory administrator of the UCJF, PLIGA provides compensation to qualified claimants for PIP, bodily injury, or death caused by private passenger automobiles operated by uninsured or “hit and run” drivers. The UCJF also provides private passenger pedestrian PIP benefits when no other coverage is available. PLIGA annually collects a UCJF assessment from all admitted property and casualty insurers writing motor vehicle liability insurance in New Jersey for UCJF indemnification and expenses. UCJF assessments can be expensed as losses recoverable in rates as appropriate. As of December 31, 2024, the date of its most recent annual financial report, the UCJF fund had a balance of $ 74 million. Other programs The Company is also subject to assessments by the NCRF and the FHCF, which are described in Note 11. Guaranty funds Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, for certain obligations of insolvent insurance companies to policyholders and claimants. The Allstate Corporation 149 2025 Form 10-K Notes to Consolidated Financial Statements Amounts assessed to each company are typically related to its proportion of business written in each state. The Company’s policy is to accrue assessments when the entity for which the insolvency relates has met its state of domicile’s statutory definition of insolvency, the amount of the loss is reasonably estimable and the related premium upon which the assessment is based is written. In most states, the definition is met with a declaration of financial insolvency by a court of competent jurisdiction. In certain states there must also be a final order of liquidation. Most states allow a credit against premium or other state related taxes for assessments and the Company records an asset for any amounts expected to be recovered. As of December 31, 2025 and 2024, the liability balance included in other liabilities and accrued expenses was $ 12 million and $ 13 million, respectively. 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 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 December 31, 2025. Regulation and compliance The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions, primarily in its property-liability business, by individual U.S. states and Canadian provinces. 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 150 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements 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 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 $ 153 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 Allstate Corporation 151 2025 Form 10-K Notes to Consolidated Financial Statements 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); and Hill v. Allstate Vehicle and Property Insurance Compan y (Circuit Court of Cole Co., Mo. filed October 2022). A settlement was reached in 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, 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. 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. In January 2026, the Company satisfied the judgment in Simon v. Holguin (Pierce County Superior Court, Wash. filed September 8, 2020), in which the Company defended its insured in a bodily injury lawsuit arising from an automobile accident. 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. On January 7, 2026, the Supreme Court denied the Company’s request to appeal the ruling of the Court of Appeals. Other proceedings The Company is defending two lawsuits 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 152 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements 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. Note 15 Income Taxes The Company and its eligible domestic subsidiaries file a U.S. consolidated federal income tax return. The Company also files tax returns in various states and foreign jurisdictions. Tax liabilities and benefits realized by the consolidated group are allocated as generated by the respective entities. Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted through income tax expense (benefit) as changes in tax laws or rates are enacted. H.R. 1 tax legislation On July 4, 2025, H.R. 1 was enacted, extending certain business tax provisions originally introduced under the 2017 Tax Cuts and Jobs Act, including permanently reinstating bonus depreciation and the full and immediate expensing for domestic research and development expenditures, new limitations on the charitable deductions, and a phase-out for certain energy tax credits. These changes do not have a significant impact to our consolidated financial statements. Inflation Reduction Act of 2022 The Inflation Reduction Act of 2022, which contains several tax-related provisions, was signed into law in August 2022. The law established a 15% corporate alternative minimum tax (“CAMT”) for certain large corporations and an excise tax of 1% on stock repurchases by publicly traded U.S. corporations, both effective after December 31, 2022. The excise tax on common stock repurchases is classified as an additional cost of the stock acquired included in treasury stock in shareholders' equity. The Company has determined that it is considered an “applicable corporation” under the rules of CAMT. 15% Global Minimum Tax The Organization for Economic Cooperation and Development (“OECD”) secured agreement to address how corporate profits are taxed for multinational enterprises (“MNEs”). The OECD released Pillar Two Model Rules (“Pillar Two”), a 15% minimum effective tax rate (also known as the Global Anti-Base Erosion), designed to ensure that large MNEs pay a minimum level of tax on the income arising in each jurisdiction where they operate and mandates sharing of certain company information with taxing authorities on a local and global basis. The Company was within the scope of Pillar Two beginning in 2024 based on certain jurisdictions where it operates, and it did not have a material impact to the consolidated financial statements. In January 2026, the OECD issued new administrative guidance introducing updates to how global minimum tax rules interact with existing U.S. tax rules, which is Allstate’s principal taxing jurisdiction. This guidance is intended to provide additional simplification, including updates to safe harbors and administrative rules related to Pillar Two. The Company is reviewing the new guidance; however, based on a preliminary assessment, it is not expected to have a material impact on the Company’s consolidated financial statements. The Company will continue to monitor future developments as applicable jurisdictions adopt the Pillar Two framework into their local laws. Regulatory tax examinations The statutes of limitations for tax years 2016 and prior for Allstate The Allstate Corporation 153 2025 Form 10-K Notes to Consolidated Financial Statements consolidated tax group have closed, barring any further IRS examinations. The IRS has also concluded its audit for Allstate’s 2017 and 2018 tax years with an approved refund claim outstanding. The statutes of limitations for 2019 and 2020 have lapsed without an audit. The Company’s U.S. Federal tax returns for 2021 and beyond remain subject to future examinations. The Company acquired National General on January 4, 2021 and SafeAuto on October 1, 2021. National General is under a separate IRS audit for pre-acquisition years 2015 through 2019 with appeals process pending for certain disputed issues. The statutes of limitations for all pre-acquisition years for SafeAuto have closed barring any further tax audits. The Company conducts business in various state and foreign jurisdictions, which may give rise to tax audits from time to time. As of December 31, 2025, there are no state or foreign jurisdiction tax audits that are expected to have a material impact on the Company’s financial position. The Company believes that adequate provisions have been made in the consolidated financial statements for any potential adjustments that may result from IRS examinations or any other tax authorities related to all open tax years. Unrecognized tax benefits The Company recognizes tax positions in the consolidated financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the consolidated financial statements. Components of income (loss) from operations before income taxes For the year ended December 31, ($ in millions) 2025 U.S. $ 12,722 Foreign 434 Total income (loss) from operations before income taxes $ 13,156 Reconciliation of the statutory federal income tax rate to the effective income tax rate For the year ended December 31, ($ in millions) 2025 Income (loss) from operations before income taxes $ 13,156 U.S. federal statutory tax rate $ 2,763 21.0 % State and local income taxes, net of federal income tax effect (1) 134 1.0 Foreign tax effects 15 0.1 Effect of cross-border tax laws 8 0.1 Tax credits ( 55 ) ( 0.4 ) Change in valuation allowances 3 — Nontaxable or nondeductible items 47 0.4 Changes in unrecognized tax benefits ( 14 ) ( 0.1 ) Other adjustments ( 11 ) ( 0.1 ) Effective tax rate $ 2,890 22.0 % (1) State taxes in Florida and Illinois made up the majority (greater than 50%) of the tax effect in this category. 154 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Reconciliation of the statutory federal income tax rate to the effective income tax rate For the years ended December 31, ($ in millions) 2024 2023 Income (loss) before income taxes $ 5,761 $ ( 348 ) U.S. federal statutory tax rate $ 1,210 21.0 % $ ( 73 ) 21.0 % State income taxes 54 0.9 ( 7 ) 2.0 Tax credits ( 42 ) ( 0.7 ) ( 47 ) 13.5 Change in valuation allowances 8 0.1 6 ( 1.7 ) Share-based payments ( 30 ) ( 0.5 ) ( 14 ) 4.0 Tax-exempt income ( 29 ) ( 0.5 ) ( 23 ) 6.6 Dividend received deduction ( 1 ) — ( 4 ) 1.1 Changes in unrecognized tax benefits ( 8 ) ( 0.1 ) 33 ( 9.5 ) U.S. shareholder’s tax (benefit) expense — — ( 17 ) 4.9 Other adjustments — — 11 ( 3.1 ) Effective tax rate $ 1,162 20.2 % $ ( 135 ) 38.8 % Components of income tax expense (benefit) For the year ended December 31, ($ in millions) 2025 Current U.S. federal $ 2,513 U.S. state and local 122 Foreign 99 Total current 2,734 Deferred U.S. federal 103 U.S. state and local 46 Foreign 7 Total deferred 156 Total income tax expense (benefit) U.S. federal 2,616 U.S. state and local 168 Foreign 106 Total income tax expense (benefit) $ 2,890 Components of income tax expense (benefit) For the years ended December 31, ($ in millions) 2024 2023 Current $ 1,179 $ 114 Deferred ( 17 ) ( 249 ) Total income tax expense (benefit) $ 1,162 $ ( 135 ) Components of income taxes paid (received) For the year ended December 31, ($ in millions) 2025 U.S. federal $ 1,907 U.S. state and local 91 Foreign Canada 136 Other 15 Total foreign 151 Total income taxes paid (received) $ 2,149 The Company paid income taxes of $ 2.15 billion and $ 276 million in 2025 and 2024, respectively, which includes amounts paid of $ 136 million and $ 33 million, respectively, for transferable tax credits applied to current tax liabilities, and received an income tax refund of $ 45 million in 2023. The Allstate Corporation 155 2025 Form 10-K Notes to Consolidated Financial Statements The Company had current income tax payable of $ 531 million and $ 91 million as of December 31, 2025 and 2024, respectively. Components of the deferred income tax assets and liabilities As of December 31, ($ in millions) 2025 2024 Deferred tax assets Unearned premium reserves $ 1,046 $ 978 Discount on loss reserves 312 292 Net operating loss carryover 222 232 Accrued compensation 142 131 Research & development capitalization 116 317 Other postretirement benefits 6 7 Pension 1 8 Unrealized net capital losses — 209 Other 145 185 Total deferred tax assets before valuation allowance 1,990 2,359 Valuation allowance ( 68 ) ( 69 ) Total deferred tax assets after valuation allowance 1,922 2,290 Deferred tax liabilities DAC ( 1,272 ) ( 1,173 ) Investments ( 439 ) ( 479 ) Depreciable assets ( 103 ) ( 123 ) Unrealized net capital gains ( 85 ) — Intangible assets ( 44 ) ( 66 ) Other ( 206 ) ( 218 ) Total deferred tax liabilities ( 2,149 ) ( 2,059 ) Net deferred tax (liabilities) assets $ ( 227 ) $ 231 In assessing the realizability of gross deferred tax assets, management considers whether it is more likely than not that some portion or all of the gross deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment, as well as limitations on use in future periods. As of December 31, 2025, the Company has U.S. federal, state and foreign net operating loss (“NOL”) carryforwards. Management believes that it is more likely than not that the benefit from certain NOL carryforwards will not be fully realized. Accordingly, the Company has a valuation allowance of $ 68 million on the deferred tax assets related to these NOL carryforwards. The following table sets forth the amounts and expiration dates of federal, foreign and state NOL carryforwards. Components of the net operating loss carryforwards as of December 31, 2025 ($ in millions) 20-Year Carryforward Expires in 2028-2045 Indefinite Various U.S. federal NOL $ 286 $ 9 $ — Foreign NOL (1) — 372 51 State NOL (2) — — 67 (1) Multiple foreign NOL carryforwards expiring in various periods, beginning in 2027. (2) Multiple state NOL carryforwards expiring in various periods, beginning in 2029. Reconciliation of the change in the amount of unrecognized tax benefits For the years ended December 31, ($ in millions) 2025 2024 2023 Balance – beginning of year $ 41 $ 45 $ 17 (Decrease) increase for tax positions taken in a prior year ( 14 ) ( 4 ) 23 Increase for tax positions taken in the current year — — 5 Balance – end of year $ 27 $ 41 $ 45 156 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements The Company recognizes interest expense related to uncertain tax benefits in income tax expense (benefit) and penalties in operating costs and expenses. There were no penalties related to the unrecognized tax benefits in 2025. There was a reduction of penalties related to the unrecognized tax benefits of $( 4 ) million in 2024. There were no penalties related to the unrecognized tax benefits in 2023. As of December 31, 2025 and 2024, the Company recognized a liability for penalties of $ 3 million and $ 3 million, respectively. For the years ended December 31, 2025, 2024, and 2023, interest (benefit) expense related to unrecognized tax benefits of $( 3 ) million, $( 2 ) million, and $ 7 million was recorded, respectively. As of December 31, 2025 and 2024, the Company recognized an accumulated liability for interest of $ 12 million and $ 15 million, respectively. Note 16 Statutory Financial Information and Dividend Limitations Allstate’s domestic property and casualty and accident and health insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. All states require domiciled insurance companies to prepare statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner or director. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition costs to expense as incurred, valuing certain investments and establishing deferred taxes on a different basis. Statutory net income (loss) and capital and surplus of Allstate’s domestic insurance subsidiaries (1) Net income (loss) Capital and surplus ($ in millions) 2025 2024 2023 2025 2024 Amounts by major business type: Property and casualty insurance $ 8,690 $ 4,158 $ ( 487 ) $ 22,845 $ 18,243 Accident and health insurance 102 (2) 61 61 101 392 Amount per statutory accounting practices $ 8,792 $ 4,219 $ ( 426 ) $ 22,946 $ 18,635 (1) 2025 numbers reflect the Company’s best estimate as of the date of the Form 10-K filing. (2) Includes $ 98 million related to the employer voluntary benefits and group health businesses sold in 2025. Dividend limitations There are no regulatory restrictions that limit the payment of dividends by the Corporation, except those generally applicable to corporations incorporated in Delaware. Dividends are payable only out of certain components of shareholders’ equity as permitted by Delaware law. However, the ability of the Corporation to pay dividends is dependent on business conditions, income, cash requirements of the Company, receipt of dividends primarily from AIC and other relevant factors. The payment of shareholder dividends by AIC without the prior approval of the Illinois Department of Insurance (“IL DOI”) is limited to formula amounts based on net income and capital and surplus, determined in conformity with statutory accounting practices, as well as the timing and amount of dividends paid in the preceding twelve months. AIC paid dividends of $ 3.95 billion in 2025. The maximum amount of dividends AIC will be able to pay without prior IL DOI approval at a given point in time during 2026 is $ 7.98 billion, less dividends paid during the preceding twelve months measured at that point in time. The payment of a dividend in excess of this amount requires 30 days advance written notice to the IL DOI. The dividend is deemed approved, unless the IL DOI disapproves it within the 30 -day notice period. Additionally, any dividend must be paid out of unassigned surplus excluding unrealized appreciation from investments, which for AIC totaled $ 15.25 billion as of December 31, 2025, and cannot result in capital and surplus being less than the minimum amount required by law. Under state insurance laws, insurance companies are required to maintain paid up capital of not less than the minimum capital requirement applicable to the types of insurance they are authorized to write. Insurance companies are also subject to RBC requirements adopted by state insurance regulators. A company’s “authorized control level RBC” is calculated using various factors applied to certain financial balances and activity. Companies that do not maintain adjusted statutory capital and surplus at a level in excess of the company action level RBC, which is two times authorized control level RBC, are required to notify and file a RBC remediation plan to the domiciliary regulator and provide a copy of the remediation plan to state insurance regulators in which the insurer is authorized to do business. Company action level RBC is significantly in excess of the minimum capital requirements. Total adjusted statutory capital and surplus and authorized control level RBC of AIC were estimated to be $ 20.75 billion and $ 4.23 billion, respectively, as of December 31, 2025. Many of the Corporation’s insurance subsidiaries are subsidiaries of or reinsure all of their business to The Allstate Corporation 157 2025 Form 10-K Notes to Consolidated Financial Statements AIC. AIC’s subsidiaries are included as a component of AIC’s total statutory capital and surplus. The amount of restricted net assets, as represented by the Corporation’s investment in its insurance subsidiaries, was $ 29.06 billion as of December 31, 2025. Intercompany transactions Notification and approval of intercompany lending activities is also required by the IL DOI for transactions that exceed a level that is based on a formula using statutory admitted assets and statutory surplus. Note 17 Benefit Plans Pension and other postretirement plans Approximately 89 % of the Company’s benefit obligation relates to its U.S. qualified defined benefit pension plan, which covers most U.S. employees. Benefits under the U.S. pension plans are based upon the employee’s length of service, eligible annual compensation and, prior to January 1, 2014, either a cash balance or final average pay formula. A cash balance formula applies to all eligible employees hired after August 1, 2002. Eligible employees hired before August 1, 2002 chose between the cash balance formula and the final average pay formula. In July 2013, the Company amended its primary plans effective January 1, 2014 to introduce a new cash balance formula to replace the previous formulas (including the final average pay formula and the previous cash balance formula) under which eligible employees accrue benefits. As of December 31, 2025, 73 % of the benefit obligation of our U.S. qualified defined benefit pension plan is related to the former final average pay formula. The Company also provides a medical coverage subsidy for eligible employees hired before January 1, 2003, including their eligible dependents, when they retire and certain life insurance benefits for eligible retirees (“postretirement benefits”). Effective January 1, 2021, the Company eliminated the medical coverage subsidy for employees who were not eligible to retire as of December 31, 2020. The Company shares the cost of retiree medical benefits with non-Medicare-eligible retirees based on years of service, with the Company’s share being subject to a 5 % limit on future annual medical cost inflation after retirement. For Medicare-eligible retirees, the Company provides a fixed Company contribution based on years of service and other factors, which is not subject to adjustments for inflation. The Company has reserved the right to modify or terminate its benefit plans at any time and for any reason. Obligations and funded status The Company calculates benefit obligations based upon generally accepted actuarial methodologies using the projected benefit obligation (“PBO”) for pension plans and the accumulated postretirement benefit obligation (“APBO”) for other postretirement plans. Pension costs and other postretirement obligations are determined using a December 31 measurement date. The benefit obligations represent the actuarial present value of all benefits attributed to employee service rendered as of the measurement date. The PBO is measured using the pension benefit formulas and assumptions. A plan’s funded status is calculated as the difference between the benefit obligation and the fair value of plan assets. The Company’s funding policy for the pension plans is to make contributions at a minimum level that is at least in accordance with regulations under the Internal Revenue Code (“IRC”) and generally accepted actuarial principles. The Company’s other postretirement benefit plans are not funded. 158 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Change in benefit obligation, plan assets and funded status As of December 31, 2025 2024 2025 2024 ($ in millions) Pension benefits Postretirement benefits Change in benefit obligation Benefit obligation, beginning of year $ 4,441 $ 4,584 $ 163 $ 185 Service cost 107 80 — — Interest cost 235 230 8 9 Participant contributions — — 11 13 Remeasurement of benefit obligation (gains) losses 101 ( 125 ) ( 5 ) ( 4 ) Benefits paid ( 449 ) ( 329 ) ( 32 ) ( 37 ) Translation adjustment and other 5 1 2 ( 3 ) Benefit obligation, end of year $ 4,440 $ 4,441 $ 147 $ 163 Change in plan assets Fair value of plan assets, beginning of year $ 4,368 $ 4,440 Actual return on plan assets 445 214 Employer contribution 44 45 Benefits paid ( 449 ) ( 329 ) Translation adjustment and other 6 ( 2 ) Fair value of plan assets, end of year $ 4,414 $ 4,368 Funded status (1) $ ( 26 ) $ ( 73 ) $ ( 147 ) $ ( 163 ) Amounts recognized in AOCI Unamortized pension and other postretirement prior service credit $ — $ — $ ( 14 ) $ ( 15 ) (1) The funded status is recorded within other liabilities and accrued expenses on the Consolidated Statements of Financial Position. Changes in items not yet recognized as a component of net cost for pension and other postretirement plans ($ in millions) Pension benefits Postretirement benefits Items not yet recognized as a component of net cost – December 31, 2024 $ — $ ( 15 ) Prior service credit amortized to net cost — 1 Translation adjustment and other — — Items not yet recognized as a component of net cost – December 31, 2025 $ — $ ( 14 ) The prior service credit is recognized as a component of net cost for pension and other postretirement plans amortized over the average remaining service period of active employees expected to receive benefits. Accumulated benefit obligation The accumulated benefit obligation (“ABO”) is the actuarial present value of all benefits attributed by the pension benefit formula to employee service rendered at the measurement date. However, it differs from the PBO due to the exclusion of an assumption as to future compensation levels. The ABO for all defined benefit pension plans was $ 4.36 billion and $ 4.36 billion as of December 31, 2025 and 2024, respectively. Included in the accrued benefit cost of the pension benefits are certain unfunded non-qualified plans with accrued benefit costs of $ 72 million and $ 74 million for 2025 and 2024, respectively. The following table provides information on pension plans where the projected and accumulated benefit obligation are in excess of plan assets. Pension plans As of December 31, ($ in millions) 2025 2024 PBO $ 72 $ 74 ABO 71 72 Fair value of plan assets — — The Allstate Corporation 159 2025 Form 10-K Notes to Consolidated Financial Statements Components of net cost (benefit) for pension and other postretirement plans For the years ended December 31, 2025 2024 2023 2025 2024 2023 2025 2024 2023 ($ in millions) Pension benefits Postretirement benefits Total pension and postretirement benefits Service cost (1) $ 107 $ 80 $ 132 $ — $ — $ 1 $ 107 $ 80 $ 133 Interest cost 235 230 239 8 9 10 243 239 249 Expected return on plan assets ( 313 ) ( 306 ) ( 306 ) — — — ( 313 ) ( 306 ) ( 306 ) Amortization of prior service credit — — — ( 1 ) ( 1 ) ( 21 ) ( 1 ) ( 1 ) ( 21 ) Costs and expenses 29 4 65 7 8 ( 10 ) 36 12 55 Remeasurement of benefit obligation 101 ( 125 ) 125 ( 5 ) ( 4 ) ( 4 ) 96 ( 129 ) 121 Remeasurement of plan assets ( 131 ) 92 ( 112 ) — — — ( 131 ) 92 ( 112 ) Remeasurement (gains) losses ( 30 ) ( 33 ) 13 ( 5 ) ( 4 ) ( 4 ) ( 35 ) ( 37 ) 9 Total net (benefit) cost $ ( 1 ) $ ( 29 ) $ 78 $ 2 $ 4 $ ( 14 ) $ 1 $ ( 25 ) $ 64 (1) For 2024, service cost includes a $ 38 million refund of premiums previously paid to the Pension Benefit Guaranty Corporation. The service cost component is the actuarial present value of the benefits attributed by the plans’ benefit formula to services rendered by the employees during the period. Interest cost is the increase in the PBO over the period, resulting from the passage of time and calculated using the discount rate. Interest cost fluctuates as the discount rate changes and is also impacted by the related change in the size of the PBO. The expected return on plan assets is determined as the product of the expected long-term rate of return on plan assets and the fair value of plan assets. Pension and other postretirement service cost, interest cost, expected return on plan assets, amortization of prior service credit and curtailment gains and losses 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 Consolidated Statements of Operations. Remeasurement gains and losses relate to changes in discount rates, the differences between actual return on plan assets and the expected long-term rate of return on plan assets, and differences between actual plan experience and actuarial assumptions. Weighted average assumptions used to determine net pension cost and net postretirement benefit cost For the years ended December 31, 2025 2024 2023 2025 2024 2023 Pension benefits Postretirement benefits Discount rate 5.55 % 5.36 % 5.65 % 5.34 % 5.30 % 5.66 % Expected long-term rate of return on plan assets 7.58 7.34 7.35 n/a n/a n/a Cash balance interest credit rate 4.72 4.25 4.05 n/a n/a n/a Weighted average assumptions used to determine benefit obligations As of December 31, 2025 2024 2025 2024 Pension benefits Postretirement benefits Discount rate 5.52 % 5.71 % 5.31 % 5.50 % Cash balance interest credit rate 4.84 4.78 n/a n/a The weighted average health care cost trend rate used in measuring the accumulated postretirement benefit cost is 8.0 % for 2026, gradually declining to 4.5 % in 2033 and remaining at that level thereafter. Pension plan assets In general, the Company’s pension plan assets are managed in accordance with investment policies approved by pension investment committees. The purpose of the policies is to ensure the plans’ long-term ability to meet benefit obligations by prudently investing plan assets and Company contributions, while taking into consideration regulatory and legal requirements and current market conditions. The investment policies are reviewed periodically and specify target plan asset allocation by asset category. In addition, the policies specify various asset allocation and other risk limits. The target asset allocation takes the plans’ funding status into consideration, among other factors, including anticipated demographic changes or liquidity requirements that may affect the funding status such as the potential impact of lump sum settlements as well as existing or expected market conditions. In general, the allocation has a lower overall investment risk when a plan is in a stronger funded status position since there is less economic incentive to take risk to increase the expected returns on the plan assets. The pension plans’ asset exposure within each asset category is tracked against widely accepted established benchmarks for each asset class with limits on variation from the benchmark established in the 160 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements investment policy. Pension plan assets are regularly monitored for compliance with these limits and other risk limits specified in the investment policies. Pension plan weighted average target asset allocation by asset category (1) As of December 31, 2025 Equity securities 24 % - 41 % Fixed income securities 50 % - 69 % Limited partnership interests 1 % - 29 % Bank loans 0 % - 12 % (1) The target asset allocation considers risk-based exposure including exposure provided through derivatives. The target asset allocation for an asset category may be achieved either through direct investment holdings, through replication using derivative instruments (e.g., futures or swaps) or net of hedges using derivative instruments to reduce exposure to an asset category. The net notional amount of derivatives used for replication and non-hedging strategies is limited to 130 % of total U.S. plan assets. Derivatives are not used to increase portfolio exposure above asset allocation limits. Market performance of the different asset categories may, from time to time, cause deviation from the target asset allocation. The asset allocation mix is reviewed on a periodic basis and rebalanced to bring the allocation within the target ranges. Outside the target asset allocation, the pension plans participate in a securities lending program to enhance returns. As of both December 31, 2025 and 2024 , fixed income securities are lent out and cash collateral is invested in short-term investments. The Allstate Corporation 161 2025 Form 10-K Notes to Consolidated Financial Statements Fair values of pension plan assets as of December 31, 2025 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance as of December 31, 2025 Equity securities $ 128 $ 5 $ — $ 133 Fixed income securities: Government bonds (1) 1,296 128 — 1,424 Corporate bonds (2) — 1,079 — 1,079 Short-term investments 166 69 — 235 Free-standing derivatives: Assets — 3 — 3 Liabilities ( 4 ) ( 6 ) — ( 10 ) Bank loans — — 78 78 Total plan assets at fair value $ 1,586 $ 1,278 $ 78 $ 2,942 % of total plan assets at fair value 53.9 % 43.4 % 2.7 % 100.0 % Investments measured using the net asset value practical expedient 1,559 Securities lending obligation (3) ( 124 ) Derivatives counterparty and cash collateral netting ( 1 ) Other net plan assets (4) 38 Total reported plan assets $ 4,414 Fair values of pension plan assets as of 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) Balance as of December 31, 2024 Equity securities $ 106 $ 1 $ — $ 107 Fixed income securities: Government bonds (1) 1,401 124 — 1,525 Corporate bonds (2) — 985 — 985 Short-term investments 78 142 — 220 Free-standing derivatives: Assets — 9 — 9 Liabilities ( 3 ) ( 9 ) — ( 12 ) Bank loans — — 81 81 Total plan assets at fair value $ 1,582 $ 1,252 $ 81 $ 2,915 % of total plan assets at fair value 54.2 % 43.0 % 2.8 % 100.0 % Investments measured using the net asset value practical expedient $ 1,570 Securities lending obligation (3) ( 158 ) Derivatives counterparty and cash collateral netting ( 8 ) Other net plan assets (4) 49 Total reported plan assets $ 4,368 (1) Includes U.S. government and agencies and foreign government bonds. (2) Includes ABS and MBS securities. (3) The securities lending obligation represents the plan’s obligation to return securities lending collateral received under a securities lending program. The terms of the program allow both the plan and the counterparty the right and ability to redeem/return the securities loaned on short notice. Due to its relatively short-term nature, the outstanding balance of the obligation approximates fair value. (4) Other net plan assets represent cash and cash equivalents, interest and dividends receivable and net receivables related to settlements of investment transactions, such as purchases and sales. The fair values of pension plan assets are estimated using the same methodologies and inputs as those used to determine the fair values for the respective asset category of the Company. These methodologies and inputs are disclosed in Note 7. 162 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Rollforward of Level 3 plan assets during December 31, 2025 Actual return on plan assets: ($ in millions) Balance as of December 31, 2024 Relating to assets sold during the period Relating to assets still held at the reporting date Purchases, sales and settlements, net Net transfers in (out) of Level 3 Balance as of December 31, 2025 Bank loans $ 81 $ — $ — $ ( 3 ) $ — $ 78 Total Level 3 plan assets $ 81 $ — $ — $ ( 3 ) $ — $ 78 Rollforward of Level 3 plan assets during December 31, 2024 Actual return on plan assets: ($ in millions) Balance as of December 31, 2023 Relating to assets sold during the period Relating to assets still held at the reporting date Purchases, sales and settlements, net Net transfers in (out) of Level 3 Balance as of December 31, 2024 Bank loans $ — $ — $ — $ 81 $ — $ 81 Total Level 3 plan assets $ — $ — $ — $ 81 $ — $ 81 There were no Level 3 plan assets in 2023. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on plan assets. The Company’s assumption for the expected long-term rate of return on plan assets is evaluated annually giving consideration to appropriate data including, but not limited to, the plan asset allocation, forward-looking expected returns for the period over which benefits will be paid, historical returns on plan assets and other relevant market data. Given the long-term forward-looking nature of this assumption, the actual returns in any one year do not immediately result in a change to the expected long-term rate of return on plan assets. In consideration of the targeted plan asset allocation, the Company evaluated expected returns using sources including: historical average asset class returns from independent nationally recognized providers of this type of data blended together using the asset allocation policy weights for the Company’s pension plans; asset class return forecasts developed by employees with relevant expertise in such forecasts and who are independent from those charged with managing the pension plan assets; and expected portfolio returns from a proprietary simulation methodology of a widely recognized external investment consulting firm that performs asset allocation and actuarial services for corporate pension plan sponsors. The above sources support the Company’s weighted average long-term rate of return on plan assets assumption of 7.58 % used for 2025 and an estimate of 7.81 % that will be used for 2026. As of the 2025 measurement date, the arithmetic average of the annual actual return on plan assets for the most recent 10 and 5 years was 9.0 % and 3.7 %, respectively. Cash flows There was no required cash contribution necessary to satisfy the minimum funding requirement under the IRC for the tax qualified pension plan for the year ended December 31, 2025. The company made a discretionary contribution of $ 35 million to the qualified pension plan in September 2025. The Company currently plans to contribute $ 14 million to its unfunded non-qualified plans and zero to both its primary and other qualified funded pension plans in 2026. The Company contributed $ 21 million and $ 24 million to the postretirement benefit plans in 2025 and 2024, respectively. Contributions by participants were $ 11 million and $ 13 million in 2025 and 2024, respectively. Estimated future benefit payments expected to be paid in the next 10 years As of December 31, 2025 ($ in millions) Pension benefits Postretirement benefits 2026 $ 478 $ 20 2027 467 18 2028 456 16 2029 452 15 2030 421 13 2031-2035 1,804 48 Total benefit payments $ 4,078 $ 130 Defined Contribution Plans Allstate 401(k) Savings Plan U.S. employees of the Company are eligible to become members of the Allstate 401(k) Savings Plan. The Company’s contributions are based on the Company’s matching obligation. The Company’s contribution to these Plans was $ 132 million, $ 126 million and $ 124 million in 2025, 2024 and 2023, respectively. Other defined contribution plans Allstate’s Canadian subsidiaries sponsor defined contribution The Allstate Corporation 163 2025 Form 10-K Notes to Consolidated Financial Statements plans for their eligible employees. Expense for subsidiary sponsored defined contribution plans was $ 13 million, $ 14 million and $ 14 million in 2025, 2024 and 2023, respectively. Note 18 Equity Incentive Plans The Company currently has equity incentive plans under which it grants nonqualified stock options, restricted stock units and performance stock awards to certain employees and directors of the Company. The following table provides the amounts of total compensation expense for the equity incentive plans and the total related tax benefits recognized. For the year ended December 31, ($ in millions) 2025 2024 2023 Compensation expense $ 123 $ 125 $ 73 Income tax benefits 17 18 12 The Company records compensation expense related to awards under these plans over the shorter of the period in which the requisite service is rendered or retirement eligibility is attained. Compensation expense for performance stock awards with no market condition is based on the probable number of awards expected to vest using the performance level most likely to be achieved at the end of the performance period. Compensation expense for performance stock awards with a market condition is based on the number of awards expected to vest as estimated at the grant date and does not change if the market condition is not met. Nonvested awards as of December 31, 2025 ($ in millions) Unrecognized compensation Weighted average vesting period Nonqualified stock options $ 15 1.58 Restricted stock units 51 1.79 Performance stock awards 31 1.47 Total $ 97 Since 2001, a total of 110.8 million shares of common stock were authorized to be used for awards under the plans, subject to adjustment in accordance with the plans’ terms. As of December 31, 2025, 9.9 million shares were reserved and remained available for future issuance under these plans. The Company uses its treasury shares for these issuances. The fair value of each option grant is estimated on the date of grant using a binomial lattice model. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted is derived from the output of the binomial lattice model and represents the period of time that options granted are expected to be outstanding. The expected volatility of the price of the underlying shares is implied based on traded options and historical volatility of the Company’s common stock. The expected dividends are based on the current dividend yield of the Company’s stock as of the date of the grant. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Options are granted to employees with exercise prices equal to the closing share price of the Company’s common stock on the applicable grant date. Options granted to employees vest ratably over a three-year period. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. Options may be exercised once vested and will expire no later than ten years after the date of grant. Option grant assumptions 2025 2024 2023 Weighted average expected term 5.9 years 5.7 years 5.8 years Expected volatility 22.3 % - 30.4 % 21.2 % - 31.6 % 20.0 % - 31.6 % Weighted average volatility 25.4 % 25.4 % 24.9 % Expected dividends 1.9 % - 2.1 % 1.8 % - 2.4 % 2.4 % - 3.3 % Weighted average expected dividends 2.1 % 2.3 % 2.6 % Risk-free rate 3.5 % - 4.6 % 3.6 % - 5.6 % 3.3 % - 5.6 % 164 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements Summary of option activity For the year ended December 31, 2025 Number (in thousands) Weighted average exercise price Aggregate intrinsic value (in thousands) Weighted average remaining contractual term (years) Outstanding as of January 1, 2025 6,393 $ 110.46 Granted 482 189.19 Exercised ( 1,074 ) 90.54 Forfeited ( 64 ) 161.99 Expired ( 2 ) 133.44 Outstanding as of December 31, 2025 5,735 120.21 $ 504,297 4.9 Outstanding, net of expected forfeitures 5,715 120.01 503,741 4.9 Outstanding, exercisable (“vested”) 4,659 109.44 459,884 4.2 The weighted average grant date fair value of options granted was $ 48.65 , $ 39.61 and $ 31.45 during 2025, 2024 and 2023, respectively. The intrinsic value, which is the difference between the fair value and the exercise price of options exercised, was $ 121 million, $ 170 million and $ 79 million during 2025, 2024 and 2023, respectively. The following table provides the amounts of cash received from exercise of options and the related tax benefits realized on options exercised. For the year ended December 31, ($ in millions) 2025 2024 2023 Cash received from exercise of options $ 78 $ 189 $ 103 Tax benefit realized on options exercised 24 32 16 Restricted stock units granted to employees vest ratably over a three-year period. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. Restricted stock units for directors vest immediately and convert into shares of stock on the earlier of the day of the third anniversary of the grant date or the date the director’s service terminates, unless a deferred period of restriction is elected. Restricted stock units granted to directors prior to June 1, 2016 convert upon leaving the board. Changes in restricted stock units For the year ended December 31, 2025 Number (in thousands) Weighted average grant date fair value Nonvested as of January 1, 2025 840 $ 131.93 Granted 331 192.37 Vested ( 350 ) 137.77 Forfeited ( 55 ) 162.40 Nonvested as of December 31, 2025 766 153.18 The fair value of restricted stock units is based on the market value of the Company’s stock as of the date of the grant. The market value in part reflects the payment of future dividends expected. The weighted average grant date fair value of restricted stock units granted was $ 192.37 , $ 160.44 and $ 132.65 during 2025, 2024 and 2023, respectively. The total fair value of restricted stock units vested was $ 67 million, $ 59 million and $ 49 million during 2025, 2024 and 2023, respectively. Performance stock awards vest into shares of stock on the third anniversary of the grant date based on achieving established company-specific performance goals. The number of shares earned upon vesting of the performance stock awards is based on the attainment of performance goals for each of the performance periods, subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. The Allstate Corporation 165 2025 Form 10-K Notes to Consolidated Financial Statements Changes in performance stock awards For the year ended December 31, 2025 Number (in thousands) Weighted average grant date fair value Nonvested as of January 1, 2025 642 $ 140.46 Granted 182 189.25 Adjustment for performance achievement ( 75 ) 122.81 Vested ( 123 ) 122.81 Forfeited ( 23 ) 151.57 Nonvested as of December 31, 2025 603 160.61 The fair value of performance stock awards includes a component with market-based condition measured on the grant date using a Monte Carlo simulation model. Market-based condition measures the Company’s total shareholder return (“TSR”) relative to the TSR of peer companies, expressed in terms of the Company’s TSR percentile rank among the peer companies, over a three-calendar-year performance period. The Monte Carlo simulation model uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return at the time of grant, volatilities of the Company and the peer companies, and expected term assumed to be equal to the remaining measurement period. The market value in part reflects the payment of future dividends expected. Performance stock awards grant assumptions 2025 2024 2023 Expected term 2.8 years 2.9 years 2.9 years Expected volatility 26.6 % 27.2 % 24.8 % Average peer volatility 23.5 % 23.3 % 29.9 % Risk-free rate 4.1 % 4.5 % 1.7 % The weighted average grant date fair value of performance stock awards granted was $ 189.25 , $ 159.29 and $ 136.62 during 2025, 2024 and 2023, respectively. The total fair value of performance stock awards vested was $ 23 million, $ 22 million and $ 41 million during 2025, 2024 and 2023, respectively. The Company recognizes all tax effects related to share-based payments at settlement or expiration through the income statement. Note 19 Supplemental Cash Flow Information Non-cash investing activities include $ 86 million, $ 77 million and $ 64 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, commercial mortgages and limited partnerships in 2025, 2024 and 2023, 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 years ended December 31, 2025 and 2024, respectively. Non-cash investing activities include $ 8 million associated with acquisition-related contingent payouts for the year ended December 31, 2024. Non-cash investing activities include $ 1 million and $ 18 million related to right-of-use real estate obtained in exchange for lease obligations for the years ended December 31, 2025 and 2024, respectively. Non-cash financing activities include $ 27 million, $ 29 million and $ 39 million related to the issuance of Allstate common shares for vested equity awards in 2025, 2024 and 2023, respectively. Cash flows used in operating activities in the Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $ 106 million, $ 113 million and $ 130 million for the years ended December 31, 2025, 2024 and 2023, respectively. Non-cash operating activities include $ 54 million, $ 69 million and $ 30 million related to right-of-use assets obtained in exchange for lease obligations for the years ended December 31, 2025, 2024 and 2023, 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 Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows: 166 www.allstate.com 2025 Form 10-K Notes to Consolidated Financial Statements For the years ended December 31, ($ in millions) 2025 2024 2023 Cash flows from operating activities Net change in proceeds managed Net change in fixed income securities $ ( 228 ) $ ( 4 ) $ 259 Net change in short-term investments 335 ( 146 ) ( 139 ) Operating cash flow provided (used) $ 107 $ ( 150 ) $ 120 Net change in liabilities Liabilities for collateral, beginning of year $ ( 2,041 ) $ ( 1,891 ) $ ( 2,011 ) Liabilities for collateral, end of year ( 1,934 ) ( 2,041 ) ( 1,891 ) Operating cash flow (used) provided $ ( 107 ) $ 150 $ ( 120 ) Note 20 Other Comprehensive Income (Loss) Components of other comprehensive income (loss) on a pre-tax and after-tax basis For the years ended December 31, 2025 2024 2023 ($ in millions) Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ 983 $ ( 214 ) $ 769 $ ( 495 ) $ 97 $ ( 398 ) $ 1,547 $ ( 322 ) $ 1,225 Less: reclassification adjustment of realized capital gains and losses ( 379 ) 80 ( 299 ) ( 293 ) 62 ( 231 ) ( 539 ) 113 ( 426 ) Unrealized net capital gains and losses 1,362 ( 294 ) 1,068 ( 202 ) 35 ( 167 ) 2,086 ( 435 ) 1,651 Unrealized foreign currency translation adjustments 114 ( 24 ) 90 ( 59 ) 12 ( 47 ) 85 ( 18 ) 67 Unamortized pension and other postretirement prior service credit (1) 1 ( 1 ) — ( 3 ) 1 ( 2 ) ( 20 ) 4 ( 16 ) Discount rate for reserve for future policy benefits ( 18 ) 4 ( 14 ) 34 ( 7 ) 27 ( 13 ) 3 ( 10 ) Other comprehensive income (loss) $ 1,459 $ ( 315 ) $ 1,144 $ ( 230 ) $ 41 $ ( 189 ) $ 2,138 $ ( 446 ) $ 1,692 (1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses. Note 21 Quarterly Results (unaudited) First quarter Second quarter Third quarter Fourth quarter ($ in millions, except per share data) 2025 2024 2025 2024 2025 2024 2025 2024 Revenues $ 16,452 $ 15,259 $ 16,633 $ 15,714 $ 17,255 $ 16,627 $ 17,345 $ 16,506 Net income applicable to common shareholders 566 1,189 2,079 301 3,717 1,161 3,803 1,899 Net income applicable to common shareholders per common share - Basic 2.13 4.51 7.86 1.14 14.13 4.39 14.55 7.16 Net income applicable to common shareholders per common share - Diluted 2.11 4.46 7.76 1.13 13.95 4.33 14.37 7.07 Consolidated net income applicable to common shareholders was $ 3.80 billion in the fourth quarter of 2025 compared to $ 1.90 billion in the fourth quarter of 2024, primarily due to improved underwriting results from increased earned premium and improved loss trends and higher investment results. The Allstate Corporation 167 2025 Form 10-K Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of The Allstate Corporation Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying Consolidated Statements of Financial Position of The Allstate Corporation and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related Consolidated Statements of Operations, Comprehensive Income (Loss), Shareholders’ Equity, and Cash Flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by COSO. Basis for Opinions The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Item 9A . Controls and Procedures. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (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 audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 168 www.allstate.com 2025 Form 10-K Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Reserve for Property and Casualty Insurance Claims and Claims Expense - Refer to Notes 2 and 10 to the Financial Statements Critical Audit Matter Description The Company establishes reserves for property and casualty insurance claims and claims expense on reported and unreported claims of insured losses. Using established industry and actuarial practices as well as the Company’s historical claims experience, the reserve for property and casualty insurance claims and claims expense is estimated based on (i) claims reported, (ii) claims incurred but not reported, and (iii) projections of claim payments to be made in the future. When the Company experiences changes in the mix or type of claims or claim settlement patterns or data, it applies actuarial judgment in the determination and selection of development factors to estimate the reserve for property and casualty insurance claims and claims expense. Given the subjectivity of estimating claims incurred but not reported and projections of claim payments to be made in the future, particularly those with payout requirements over a longer period of time, the related audit effort in evaluating the reserve for property and casualty insurance claims and claims expense required a high degree of auditor judgment and an increased extent of effort, including involvement of our actuarial specialists. How the Critical Audit Matter Was Addressed in the Audit Our principal audit procedures related to the reserve for property and casualty insurance claims and claims expense included the following: • We tested the effectiveness of controls related to the reserve for property and casualty insurance claims and claims expense, including those over the Company’s estimates and projections. • We evaluated the methods and assumptions used by the Company to estimate the reserve for property and casualty insurance claims and claims expense by: – Testing the underlying data that served as the basis for the actuarial analysis, including historical claims, to test that the inputs to the actuarial estimate were complete and accurate. – Performing a retrospective review, including comparing prior year estimates of expected incurred losses to actual experience during the current year to identify potential bias in the determination of the reserve for property and casualty insurance claims and claims expense. • With the assistance of our actuarial specialists, we developed independent estimates for the reserve for property and casualty insurance claims and claims expense, particularly those with payout requirements over a longer period of time, utilizing loss data or industry claims development factors, and compared our estimates to management’s estimates and assessed the consistency of management’s approach. /s/ Deloitte & Touche LLP Chicago, Illinois February 19, 2026 We have served as the Company's auditor since 1992. The Allstate Corporation 169 2025 Form 10-K Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.