What changed in this filing

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Item 1. Financial Statements

2026-04-29 compared with 2025-11-05 · 316 added, 599 removed, 1251 unchanged (42% of the section changed)

3 unchanged sentences

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

September 30, Nine months ended September 30,

2025 2024 2025 2024

Property and casualty insurance premiums $ 15,553 $ 14,698

7 unchanged sentences

Accident, health and other policy benefits

67 317 588 904

Amortization of deferred policy acquisition costs 2,178 2,087

5 unchanged sentences

Total costs and expenses 13,833 15,733

Gain on disposition of operations

720 — 1,610 —

Income from operations before income tax expense 3,108 719

1 unchanged sentence

Net income 2,458 596

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

Net income attributable to noncontrolling interest 1 1

Net income attributable to Allstate 2,457 595

7 unchanged sentences

See notes to condensed consolidated financial statements.

Third Quarter 2025 Form 10-Q 1

First Quarter 2026 Form 10-Q 1

Condensed Consolidated Financial Statements

1 unchanged sentence

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

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Net income $ 2,458 $ 596

Other comprehensive income, after-tax

Other comprehensive (loss) income, after-tax

Unrealized net capital gains and losses ( 518 ) 420

2 unchanged sentences

Discount rate for reserve for future policy benefits

1 ( 36 ) ( 13 ) ( 12 )

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

Other comprehensive (loss) income, after-tax ( 547 ) 380

Comprehensive income 1,911 976

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

Comprehensive income attributable to noncontrolling interest 1 5

Comprehensive income attributable to Allstate $ 1,910 $ 971

4 unchanged sentences

Condensed Consolidated Statements of Financial Position (unaudited)

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

($ in millions, except par value data) March 31, 2026 December 31, 2025

Fixed income securities, at fair value (amortized cost, net $ 59,338 and $ 58,730 )

14 unchanged sentences

Other assets, net 7,583 5,252

Assets held for sale — 3,092

Total assets 123,972 119,758

5 unchanged sentences

Debt 7,491 7,490

Liabilities held for sale — 2,113

Total liabilities 92,385 89,169

11 unchanged sentences

Discount rate for reserve for future policy benefits

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

Total accumulated other comprehensive (loss) income ( 292 ) 255

Total Allstate shareholders’ equity 31,607 30,610

3 unchanged sentences

See notes to condensed consolidated financial statements.

Third Quarter 2025 Form 10-Q 3

First Quarter 2026 Form 10-Q 3

Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)

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

2025 2024 2025 2024

($ in millions, except per share data) Three months ended March 31,

Preferred stock par value $ — $ —

23 unchanged sentences

Change in discount rate for reserve for future policy benefits

1 ( 36 ) ( 13 ) ( 12 )

Balance, end of period ( 292 ) ( 509 )

3 unchanged sentences

Change in unrealized net capital gains and losses — 4

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

Noncontrolling income 1 1

Capital transactions for noncontrolling interest

6 unchanged sentences

Condensed Consolidated Statements of Cash Flows (unaudited)

($ in millions) Nine months ended

September 30,

($ in millions) Three months ended

Cash flows from operating activities

4 unchanged sentences

Pension and other postretirement remeasurement (gains) losses 19 78

Gain on disposition of operations

Claims and claims expense and other insurance reserves

2 unchanged sentences

Premium installment receivables, net ( 190 ) ( 442 )

Reinsurance recoverables, net ( 394 ) ( 324 )

Reinsurance and indemnification recoverables, net 78 ( 1,216 )

Income taxes 579 14

19 unchanged sentences

Purchases of property and equipment, net ( 40 ) ( 92 )

Proceeds from sale of property and equipment — 18

Proceeds from disposition of operations, net of cash transferred

Net cash used in investing activities ( 2,627 ) ( 1,293 )

Cash flows from financing activities

Proceeds from issuance of debt — 495

Redemption and repayment of debt

Contractholder fund deposits — 30

4 unchanged sentences

Shares reissued under equity incentive plans, net ( 8 ) 15

Other ( 4 ) 8

Net cash used in financing activities ( 916 ) ( 334 )

4 unchanged sentences

See notes to condensed consolidated financial statements.

Third Quarter 2025 Form 10-Q 5

First Quarter 2026 Form 10-Q 5

Notes to Condensed Consolidated Financial Statements

5 unchanged sentences

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

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

The condensed consolidated financial statements and notes as of March 31, 2026 and for the three-month periods ended March 31, 2026 and 2025 are unaudited.

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

4 unchanged sentences

Adopted accounting standard

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

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

Credit losses Effective January 1, 2026, the Company adopted new Financial Accounting Standards Board (“FASB”) guidance that provides a practical expedient for estimating credit losses on current accounts receivable and contract assets arising from revenue transactions accounted for under the guidance for revenue from contracts with customers.

The guidance permits entities to assume current conditions remain unchanged over the asset’s remaining life when estimating expected credit losses, simplifying the estimation process.

The adoption did not have a material impact on the Company’s financial statements or disclosures.

Pending accounting standards

Income tax disclosures In December 2023, the FASB issued guidance enhancing various aspects of income tax disclosures.

The guidance requires a tabular reconciliation between statutory and effective income tax expense (benefit) with both amounts and percentages for a list of required categories.

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

Additionally, entities must disclose income taxes paid,

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

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

The guidance affects disclosures only.

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

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

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

employee compensation, depreciation,

lease expense, credit losses 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.

2 unchanged sentences

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.

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

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

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

In addition, website

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Notes to Condensed Consolidated Financial Statements

development costs are now included under the same guidance.

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.

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 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.

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Notes to Condensed Consolidated Financial Statements

Note 2 Earnings per Common Share

5 unchanged sentences

Computation of basic and diluted earnings per common share

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

2025 2024 2025 2024

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

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

(In millions, except per share data) Three months ended March 31,

Net income attributable to noncontrolling interest

Net income attributable to Allstate 2,457

1 unchanged sentence

Net income applicable to common shareholders

Weighted average common shares outstanding

$ 2,428 $ 566

Weighted average common shares outstanding

Effect of dilutive potential common shares:

Stock options

2.3 2.6 2.5 2.6

Restricted stock units (non-participating) and performance stock awards

1.0 0.8 1.0 0.7

Weighted average common and dilutive potential common shares outstanding

266.4 268.0 267.8 267.4

Earnings per common share - Basic

$ 9.36 $ 2.13

Earnings per common share - Diluted

1 unchanged sentence

Anti-dilutive share-based awards excluded from diluted earnings per common share

0.5 0.6 0.4 0.5

Note 3 Dispositions

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

The Company recorded a gain on the sale of

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

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

Third Quarter 2025 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

Major classes of assets and liabilities disposed of in EVB transaction

($ in millions) April 1,

2025 December 31, 2024

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 )

Other investments, net

Total investments 1,856 1,906

Deferred policy acquisition costs

Reinsurance recoverables, net 117 111

Other assets (1)

$ 3,050 $ 3,092

Reserve for future policy benefits $ 1,096 $ 1,085

Contractholder funds 882 890

Other liabilities and accrued expenses 124 138

Total liabilities

$ 2,102 $ 2,113

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

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

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

cash, net of purchase price adjustments.

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

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

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

($ in millions)

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

Short-term, at fair value (amortized cost $ 177 )

Total investments 320

Deferred policy acquisition costs

Other assets (1)

Other liabilities and accrued expenses $ 9

Total liabilities

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

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

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

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First Quarter 2026 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Measuring segment profit or loss

The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services and Corporate segments.

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

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

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

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

1 unchanged sentence

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

The dispositions of the employer voluntary benefits (“EVB”) and group health businesses in 2025 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.

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

8 unchanged sentences

Reportable segments financial performance

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

Three months ended March 31,

($ in millions) 2026 2025

2 unchanged sentences

Run-off Property-Liability

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

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

4 unchanged sentences

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

873 708 2,343 2,053

Net gains (losses) on investments and derivatives ( 405 ) ( 349 )

1 unchanged sentence

Amortization of purchased intangibles (1)

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

Gain on disposition

723 1 1,616 6

All other (2)

( 7 ) 5 ( 16 ) 18

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

1 unchanged sentence

Total reconciling items ( 217 ) 215

Net loss attributable to noncontrolling interest (4)

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

Net income attributable to noncontrolling interest (4)

Net income applicable to common shareholders $ 2,428 $ 566

3 unchanged sentences

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

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

Third Quarter 2025 Form 10-Q 9

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

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Notes to Condensed Consolidated Financial Statements

Reportable segments revenue information

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Allstate Protection

14 unchanged sentences

Protection and insurance products

126 125 376 377

Intersegment premiums and service fees (1)

33 49 106 123

Other revenue 117 128

9 unchanged sentences

Total Allstate Health and Benefits

— 468 676 1,411

Other revenue 17 15

2 unchanged sentences

Total Corporate

158 59 292 139

Reconciliation of revenue

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

873 708 2,343 2,053

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

5 unchanged sentences

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

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First Quarter 2026 Form 10-Q 9

Notes to Condensed Consolidated Financial Statements

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

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

Three months ended March 31,

($ in millions) 2026 2025

3 unchanged sentences

Catastrophe losses 1,240 2,202

Non-catastrophe prior year reserve reestimates ( 542 ) ( 14 ) ( 1,158 ) ( 73 )

Prior year reserve reestimates excluding catastrophes ( 1,016 ) ( 238 )

Amortization of DAC 1,821 1,732

4 unchanged sentences

12,687 14,151

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

Run-off Property-Liability

Claims and claims expense prior year reserve reestimates (3)

146 59 151 65

Other segment expenses (2)

146 60 153 68

Protection Services

Claims and claims expense

193 166 524 481

Amortization of DAC 348 318

Non-deferrable commissions

116 94 327 251

Restructuring and related charges 4 —

Other segment expenses (2)

194 186 582 509

Income taxes on operations 15 17

2 unchanged sentences

Accident, health and other policy benefits

— 255 379 723

Amortization of DAC — 30

Restructuring and related charges — 1 — 2

Other segment expenses (2)

— 147 213 430

Income taxes on operations

Total — 442 634 1,281

Interest expense 98 100

Restructuring and related charges — 3 — 2

Other segment expenses (2)

42 39 119 128

Income taxes on operations

2 unchanged sentences

Total $ 144 $ 134

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

(1) Includes Allstate Protection incurred loss adjustment expenses, net of reinsurance of $ 783 million and $ 731 million for the three months ended March 31, 2026 and 2025, respectively.

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

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

Third Quarter 2025 Form 10-Q 11

(3) Includes Run-off Property-Liability incurred loss adjustment expenses, net of reinsurance of zero and $ 3 million for the three months ended March 31, 2026 and 2025, respectively.

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Notes to Condensed Consolidated Financial Statements

Additional significant financial performance data

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

Three months ended March 31,

($ in millions) 2026 2025

7 unchanged sentences

Allstate Protection

$ 46 $ 52 $ 138 $ 154

Protection Services 6 9

3 unchanged sentences

Allstate Protection and Run-off Property-Liability

$ 817 $ 257 $ 1,315 $ 599

Protection Services 12 13

1 unchanged sentence

( 33 ) ( 46 )

( 2 ) — ( 5 ) 2

Consolidated $ 650 $ 123

(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.

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

Reportable segments total assets, investments and deferred policy acquisition costs

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

($ in millions) March 31, 2026 December 31, 2025

Allstate Protection and Run-off Property-Liability

1 unchanged sentence

Protection Services 7,851 8,372

Allstate Health and Benefits

Consolidated $ 123,972 $ 119,758

3 unchanged sentences

Protection Services 2,411 2,312

Allstate Health and Benefits (2)

Consolidated $ 85,160 $ 83,237

3 unchanged sentences

Protection Services 3,234 3,274

Allstate Health and Benefits (2)

All other 94 86

Consolidated $ 6,070 $ 6,163

(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.

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First Quarter 2026 Form 10-Q 11

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Portfolio composition

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

($ in millions) March 31, 2026 December 31, 2025

Fixed income securities, at fair value $ 59,060 $ 59,115

7 unchanged sentences

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

September 30, 2025

March 31, 2026

government and agencies $ 12,140 $ 10 $ ( 108 ) $ 12,042

13 unchanged sentences

ABS 1,348 8 ( 4 ) 1,352

2,086 41 ( 1 ) 2,126

Total fixed income securities $ 58,730 $ 777 $ ( 392 ) $ 59,115

Scheduled maturities for fixed income securities

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

($ in millions) March 31, 2026 December 31, 2025

Amortized cost, net Fair

9 unchanged sentences

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

Third Quarter 2025 Form 10-Q 13

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Notes to Condensed Consolidated Financial Statements

Net investment income

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Fixed income securities $ 666 $ 608

7 unchanged sentences

Net investment income

$ 949 $ 783 $ 2,557 $ 2,259

Net gains (losses) on investments and derivatives by type

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Fixed income securities $ 1 $ ( 128 )

Equity securities ( 381 ) ( 112 )

Mortgage loans ( 6 ) ( 1 ) ( 6 ) —

Limited partnership interests ( 16 ) ( 5 )

1 unchanged sentence

Other investments ( 3 ) ( 18 )

— — ( 67 ) ( 123 )

Net gains (losses) on investments and derivatives $ ( 405 ) $ ( 349 )

(1) 2025 is related to losses recorded for variable interests in Adirondack Insurance Exchange (“Adirondack”) and New Jersey Skylands Insurance Association (“Skylands”) (together “Reciprocal Exchanges”).

2024 is related to losses for the carrying value of the surplus notes issued by the Reciprocal Exchanges.

See Note 8 for further detail.

Net gains (losses) on investments and derivatives by transaction type

($ in millions)

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

2025 2024 2025 2024

Three months ended March 31,

Sales $ ( 4 ) $ ( 137 )

6 unchanged sentences

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

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Gross realized gains $ 124 $ 71

1 unchanged sentence

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

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Equity securities $ ( 250 ) $ ( 95 )

Limited partnership interests carried at fair value

16 18 ( 13 ) 65

Total $ ( 245 ) $ ( 112 )

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First Quarter 2026 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements

Credit losses recognized in net income

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Fixed income securities:

Municipal $ — $ ( 2 ) $ — $ ( 2 )

Corporate $ — $ ( 1 )

Total fixed income securities — ( 1 )

Mortgage loans ( 6 ) ( 1 ) ( 6 ) —

Limited partnership interests ( 7 ) —

1 unchanged sentence

Bank loans — ( 8 )

( 6 ) — ( 6 ) 2

— — ( 52 ) ( 123 )

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

4 unchanged sentences

gains (losses)

September 30, 2025 Gains Losses

March 31, 2026 Gains Losses

Fixed income securities $ 59,060 $ 400 $ ( 678 ) $ ( 278 )

3 unchanged sentences

Unrealized net capital gains and losses, pre-tax ( 282 )

Reclassification of noncontrolling interest —

Deferred income taxes 61

5 unchanged sentences

— — ( 2 ) ( 2 )

Investments classified as held for sale ( 110 )

Unrealized net capital gains and losses, pre-tax 382

Reclassification of noncontrolling interest 3

Deferred income taxes ( 85 )

2 unchanged sentences

Change in unrealized net capital gains (losses)

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

($ in millions) Three months ended March 31, 2026

Fixed income securities $ ( 663 )

Short-term investments ( 1 )

Derivative instruments —

Investments classified as held for sale (1)

Reclassification of noncontrolling interest ( 3 )

Total ( 664 )

Deferred income taxes 146

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

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

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

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

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

Third Quarter 2025 Form 10-Q 15

Mortgage loans consist of commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States, substantially all of which are non-recourse to the borrower, and residential mortgage loans secured by collateral that have recourse to the borrower.

Mortgage loans, net of credit allowance

($ in millions) March 31, 2026 December 31, 2025

Commercial $ 603 $ 619

Residential 265 260

Total $ 868 $ 879

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Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Carrying value for limited partnership interests

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

($ in millions) March 31, 2026 December 31, 2025

Private equity $ 7,227 $ 7,247

4 unchanged sentences

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

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

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

Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net.

As of March 31, 2026 and December 31, 2025, the fair value of short-term investments totaled $ 4.71 billion and $ 4.89 billion, respectively.

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

Real estate is carried at cost less accumulated depreciation.

Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net.

Other investments by asset type

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

Bank loans, net $ 383 $ 201

($ in millions) March 31, 2026 December 31, 2025

Real estate $ 622 $ 630

Bank loans, net 520 473

Total $ 1,150 $ 1,114

17 unchanged sentences

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.

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First Quarter 2026 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements

Recoveries after write-offs are recognized when received.

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

Accrued interest excluded from the amortized cost of fixed income securities totaled $ 612 million and $ 662 million as of March 31, 2026 and December 31, 2025, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position.

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

9 unchanged sentences

Rollforward of credit loss allowance for fixed income securities

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

Three months ended March 31,

($ in millions) 2026 2025

1 unchanged sentence

Credit losses on securities for which credit losses not previously reported — ( 1 )

Net (increases) decreases related to credit losses previously reported — — 1 3

Net increases related to credit losses previously reported — —

(Increase) decrease related to sales and other

1 unchanged sentence

Ending balance $ ( 10 ) $ ( 18 )

Components of credit loss allowance as of September 30

Municipal bonds

Components of credit loss allowance as of March 31

Corporate bonds ( 8 ) ( 17 )

1 unchanged sentence

Total $ ( 10 ) $ ( 18 )

Third Quarter 2025 Form 10-Q 17

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Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

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

September 30, 2025

March 31, 2026

Fixed income securities

21 unchanged sentences

Total fixed income securities 874 $ 17,417 $ ( 139 ) 1,345 $ 5,394 $ ( 253 ) $ ( 392 )

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

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

(1) Includes fixed income securities with credit loss allowances;

fair values of $ 21 million and $ 11 million, unrealized losses of $ 4 million and $ 2 million, and credit loss allowances of $ 2 million and $ 1 million as of March 31, 2026 and December 31, 2025, respectively.

Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2026

($ in millions) Investment

14 unchanged sentences

This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the

18 www.allstate.com

First Quarter 2026 Form 10-Q 17

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

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

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

As of March 31, 2026, 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.

9 unchanged sentences

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.

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.

7 unchanged sentences

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

Third Quarter 2025 Form 10-Q 19

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.

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Notes to Condensed Consolidated Financial Statements

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

($ in millions) 2021 and prior 2022 2023 2024 2025 2026 Total Total

6 unchanged sentences

Payment status of mortgage loans

September 30, 2025

($ in millions) Commercial

March 31, 2026

Less than 90 days past due

90 days or greater past due

Total past due before allowance

Current before allowance

Total mortgage loans before allowance

( 8 ) ( 2 ) ( 10 )

Total mortgage loans $ 603 $ 265 $ 868

December 31, 2025

Less than 90 days past due

90 days or greater past due

4 unchanged sentences

Total mortgage loans $ 619 $ 260 $ 879

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

Rollforward of credit loss allowance for mortgage loans

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

Three months ended March 31,

($ in millions) 2026 2025

4 unchanged sentences

$ ( 10 ) $ ( 12 )

Components of credit loss allowance as of September 30

Components of credit loss allowance as of March 31

$ ( 8 ) $ ( 12 )

5 unchanged sentences

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

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First Quarter 2026 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

Bank loans amortized cost by credit rating and year of origination

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

($ in millions) 2021 and prior 2022 2023 2024 2025 2026 Total Total

8 unchanged sentences

Rollforward of credit loss allowance for bank loans

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Beginning balance $ ( 17 ) $ ( 10 )

Net (increases) decreases related to credit losses ( 3 ) — ( 12 ) 5

Net increases related to credit losses — ( 8 )

Write-offs 1 2

24 unchanged sentences

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

Third Quarter 2025 Form 10-Q 21

The Company performs procedures to understand and

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Notes to Condensed Consolidated Financial Statements

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

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.

24 unchanged sentences

• Equity securities:

The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.

The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active.

• Short-term:

3 unchanged sentences

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

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

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

First Quarter 2026 Form 10-Q 21

Notes to Condensed Consolidated Financial Statements

services industry and do not involve significant judgment.

• Assets held for sale:

Comprise U.S.

government and agencies, municipal, corporate, MBS fixed income securities and short-term.

The significant inputs and valuation techniques are based on the respective asset type as described above.

Level 3 measurements

10 unchanged sentences

• Equity securities:

The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets that are not market observable.

The primary inputs to the valuation include quoted prices for identical or similar assets that are not market observable.

• Short-term:

2 unchanged sentences

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

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.

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.

7 unchanged sentences

Assets measured at fair value on a non-recurring basis

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

Comprise long-lived assets to be disposed of by sale, including real estate, that 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 partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy.

These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner.

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

Third Quarter 2025 Form 10-Q 23

As of March 31, 2026, the Company has commitments to invest $ 118 million in limited partnership interests that are reported at NAV.

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Notes to Condensed Consolidated Financial Statements

Assets and liabilities measured at fair value

September 30, 2025

March 31, 2026

($ 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

21 unchanged sentences

Total liabilities at fair value $ ( 1 ) $ ( 6 ) $ ( 1 ) $ 6 $ ( 2 )

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

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(1) Excludes $ 94 million of securities using the measurement alternative or the equity method of accounting and $ 479 million reported at NAV.

(2) Includes $ 479 million of equity securities and $ 786 million of limited partnerships.

First Quarter 2026 Form 10-Q 23

Notes to Condensed Consolidated Financial Statements

9 unchanged sentences

ABS — 1,330 22 1,352

— 2,068 58 2,126

Total fixed income securities 18,124 40,683 308 59,115

4 unchanged sentences

Other assets — — 147 147

Assets held for sale 241 1,536 7 1,784

Total recurring basis assets 27,487 44,023 484 ( 1 ) 71,993

6 unchanged sentences

Total liabilities at fair value $ ( 2 ) $ ( 19 ) $ ( 1 ) $ 19 $ ( 3 )

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

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

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

Third Quarter 2025 Form 10-Q 25

(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.

As of March 31, 2026 and December 31, 2025, Level 3 fair value measurements of fixed income securities totaled $ 300 million and $ 308 million, respectively, and included $ 149 million and $ 146 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, $ 11 million and $ 12 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 3 million and $ 29 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 ratings of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value.

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Notes to Condensed Consolidated Financial Statements

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

Balance as of

June 30, 2025 Total gains (losses)

Transfers Balance as of

September 30, 2025

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

Fixed income securities:

Municipal $ 2 $ — $ — $ 1 $ — $ — $ — $ — $ 3

Corporate - public 35 — — — — — ( 1 ) — 34

Corporate - privately placed 109 — 1 — — 48 — ( 2 ) 156

ABS 39 — — — ( 15 ) — — — 24

88 — — — — 2 — ( 1 ) 89

Total fixed income securities 273 — 1 1 ( 15 ) 50 ( 1 ) ( 3 ) 306

Equity securities 358 ( 1 ) — — ( 48 ) 3 ( 2 ) — 310

Short-term investments 4 — — — — 6 ( 1 ) — 9

Other investments 1 — — — — — — — 1

Other assets 137 3 — — — — — — 140

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

Other liabilities

( 1 ) — — — — — — — ( 1 )

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

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

Rollforward of Level 3 assets and liabilities held at fair value during the three-month period ended March 31, 2026

Balance as of

1 unchanged sentence

Transfers Balance as of

September 30, 2025

March 31, 2026

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

10 unchanged sentences

Other assets 147 6 — — — — — ( 25 ) 128

Assets held for sale

7 — 1 — — — ( 8 ) — —

Total recurring Level 3 assets 484 5 1 — ( 26 ) 38 ( 5 ) ( 40 ) 457

Liabilities —

Other liabilities

1 unchanged sentence

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

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Notes to Condensed Consolidated Financial Statements

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

Balance as of

June 30, 2024 Total gains (losses)

Transfers Transfers (to) from held for sale

Balance as of

September 30, 2024

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

Fixed income securities:

Municipal $ 7 $ ( 2 ) $ — $ — $ — $ — $ — $ — $ — $ 5

Corporate - public 30 — — — — ( 7 ) 5 — — 28

Corporate - privately placed 50 — — — — — 1 — — 51

71 — — — — — 27 — ( 1 ) 97

Total fixed income securities 158 ( 2 ) — — — ( 7 ) 33 — ( 1 ) 181

Equity securities 393 12 — — — — 5 ( 2 ) — 408

Short-term investments 1 — — — — — 1 — — 2

Other investments 2 — — — — — — — — 2

Other assets 121 2 — — — — — — — 123

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

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

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

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

Rollforward of Level 3 assets and liabilities held at fair value during the three-month period ended March 31, 2025

Balance as of

December 31, 2024 Total gains (losses)

Transfers Transfers (to) from held for sale

Balance as of

September 30, 2024

Transfers Balance as of

March 31, 2025

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

13 unchanged sentences

Total Level 3 gains (losses) included in net income

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

Three months ended March 31,

($ in millions) 2026 2025

1 unchanged sentence

Net gains (losses) on investments and derivatives

( 2 ) 10 25 10

Operating costs and expenses

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

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

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

Third Quarter 2025 Form 10-Q 27

There were no transfers into Level 3 during the three months ended March 31, 2026.

Transfers into Level 3 during the three months ended March 31, 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.

Transfers out of Level 3 during the three months ended March 31, 2026 included situations where a rating that was not provided by third-party rating agencies in the prior period became available in the current period.

Transfers out of Level 3 during the three months ended March 31, 2025 included situations where a broker quote was used in the prior period and a quote with market observable inputs became available from the Company’s independent third-party valuation service provider in the current period.

Any gains or losses related to the change in

First Quarter 2026 Form 10-Q 25

Notes to Condensed Consolidated Financial Statements

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

Any gains or losses related to the

change in valuation source for individual securities were not significant.

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

valuation source for individual securities were not significant.

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

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

Three months ended March 31,

($ in millions) 2026 2025

Fixed income securities:

Municipal $ — $ ( 2 ) $ — $ ( 2 )

Corporate - public $ — $ ( 1 )

Corporate - privately placed — — — ( 6 )

Total fixed income securities — ( 1 )

2 unchanged sentences

Total recurring Level 3 assets $ 5 $ 14

Other liabilities $ — $ — $ ( 1 ) $ —

Total recurring Level 3 liabilities — — ( 1 ) —

Total included in net income $ 5 $ 14

8 unchanged sentences

Financial instruments not carried at fair value

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

($ in millions) March 31, 2026 December 31, 2025

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

6 unchanged sentences

Liability for collateral Level 2 2,074 2,074 1,934 1,934

Liabilities held for sale

Level 3 — — 40 40

(1) Represents the amounts reported on the Condensed Consolidated Statements of Financial Position.

4 unchanged sentences

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

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Notes to Condensed Consolidated Financial Statements

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

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

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 Property-Liability fixed income portfolio.

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

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 by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations.

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

Equity derivatives may also be utilized to replicate cash market positions to increase equity

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Notes to Condensed Consolidated Financial Statements

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

As of March 31, 2026 and December 31, 2025, the Company has not designated any fair value, cash flow or net investment hedge accounting relationships.

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

4 unchanged sentences

The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements (“MNAs”) and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position.

In connection with the sale of ALIC and certain affiliates in 2021, the sale agreement included a provision related to contingent consideration that may be earned over a ten-year period with the first potential payment date commencing on January 1, 2026 and a final potential payment date of January 1, 2035.

In connection with the sale of ALIC and certain affiliates in 2021, the sale agreement included a provision related to contingent consideration that is earned over a ten-year period commencing January 1, 2026.

The contingent consideration is determined annually based on the average ten-year U.S.

2 unchanged sentences

There are no collateral requirements related to the contingent consideration.

Third Quarter 2025 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

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

Summary of the volume and fair value positions of derivative instruments as of March 31, 2026

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

4 unchanged sentences

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

Options Other investments n/a 105 — — —

Futures Other assets n/a 25,803 3 3 —

Equity and index contracts

Options Other investments n/a 65 — — —

Futures Other assets n/a 993 7 7 —

Foreign currency contracts

Foreign currency forwards Other investments 255 n/a 2 4 ( 2 )

Contingent consideration Other assets 225 n/a 128 128 —

8 unchanged sentences

Equity and index contracts

Options Other liabilities and accrued expenses n/a 65 — — —

Futures Other liabilities and accrued expenses n/a 77 — — —

6 unchanged sentences

(n/a = not applicable)

First Quarter 2026 Form 10-Q 27

Notes to Condensed Consolidated Financial Statements

Summary of the volume and fair value positions of derivative instruments as of December 31, 2025

4 unchanged sentences

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 — — —

2 unchanged sentences

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 )

2 unchanged sentences

Interest rate contracts

Interest rate swap agreements Other liabilities and accrued expenses $ 37 n/a $ ( 1 ) $ — $ ( 1 )

Futures Other liabilities and accrued expenses n/a 1,323 — — —

Equity and index contracts

Options Other liabilities and accrued expenses n/a 12 — — —

Futures Other liabilities and accrued expenses n/a 1,063 ( 2 ) — ( 2 )

Foreign currency contracts

Foreign currency forwards Other liabilities and accrued expenses $ 45 n/a ( 3 ) — ( 3 )

Total liability derivatives 82 2,398 ( 6 ) $ — $ ( 6 )

3 unchanged sentences

(n/a = not applicable)

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Notes to Condensed Consolidated Financial Statements

Gross and net amounts for OTC derivatives (1)

1 unchanged sentence

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

September 30, 2025

March 31, 2026

Asset derivatives $ 7 $ ( 5 ) $ — $ 2 $ ( 3 ) $ ( 1 )

4 unchanged sentences

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

28 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Gains (losses) from valuation and settlements reported on derivatives

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

Three months ended September 30, 2025

Interest rate contracts $ 2 $ — $ 2

Equity and index contracts ( 2 ) 15 13

Contingent consideration — 3 3

Foreign currency contracts 6 — 6

Total $ 6 $ 18 $ 24

Nine months ended September 30, 2025

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

Equity and index contracts ( 10 ) 21 11

Contingent consideration — 6 6

Foreign currency contracts ( 50 ) — ( 50 )

Credit default contracts ( 10 ) — ( 10 )

Total $ ( 78 ) $ 27 $ ( 51 )

Three months ended September 30, 2024

Three months ended March 31, 2026

Interest rate contracts $ ( 13 ) $ — $ ( 13 )

4 unchanged sentences

Total $ ( 6 ) $ ( 2 ) $ ( 8 )

Nine months ended September 30, 2024

Three months ended March 31, 2025

Interest rate contracts $ ( 1 ) $ — $ ( 1 )

Equity and index contracts — ( 11 ) ( 11 )

Contingent consideration — 5 5

Foreign currency contracts ( 18 ) — ( 18 )

Credit default contracts 2 — 2

Total $ ( 19 ) $ ( 11 ) $ ( 30 )

2 unchanged sentences

OTC cash and securities collateral pledged

($ in millions) September 30, 2025

($ in millions) March 31, 2026

Pledged by the Company $ 1

2 unchanged sentences

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

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

Third Quarter 2025 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

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

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

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

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) September 30, 2025 December 31, 2024

($ in millions) March 31, 2026 December 31, 2025

Number of counter-parties Notional amount (2)

11 unchanged sentences

Exchange traded and cleared margin deposits

($ in millions) September 30, 2025

($ in millions) March 31, 2026

Pledged by the Company $ 91

2 unchanged sentences

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.

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.

1 unchanged sentence

Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments.

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

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

The following table summarizes the fair value of derivative instruments with termination, cross-default

First Quarter 2026 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

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) March 31, 2026 December 31, 2025

Gross liability fair value of contracts containing credit-risk-contingent features $ 6 $ 16

9 unchanged sentences

AAA AA A BBB BB and

September 30, 2025

March 31, 2026

Corporate debt $ — $ — $ — $ 300 $ — $ 300 $ 5

Total $ — $ — $ — $ 300 $ — $ 300 $ 5

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Notes to Condensed Consolidated Financial Statements

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

December 31, 2025

Corporate debt $ — $ — $ — $ 550 $ — $ 550 $ 9

Total $ — $ — $ — $ 550 $ — $ 550 $ 9

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.

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.

6 unchanged sentences

The results of the Reciprocal Exchanges are included in the Allstate Protection segment as the Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance.

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

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

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

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

As the reciprocal insurers are dissolved, policyholders will share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges.

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

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

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

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

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

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

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

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

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

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

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

Third Quarter 2025 Form 10-Q 33

The assets of the Reciprocal Exchanges can be used only to settle the obligations of the

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Notes to Condensed Consolidated Financial Statements

Reciprocal Exchanges and general creditors have no recourse to the Company.

Assets and liabilities of Reciprocal Exchanges

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

($ in millions) March 31, 2026 December 31, 2025

Fixed income securities $ 3 $ 4

Short-term investments 59 68

Premium installment and other receivables, net — 9

Reinsurance recoverables, net 47 53

Other assets — 25

Total assets $ 109 $ 125

Reserve for property and casualty insurance claims and claims expense $ 138 $ 153

Unearned premiums — 22

Other liabilities and expenses 184 186

4 unchanged sentences

When the Company experiences changes in the mix or type of claims or changing claim settlement patterns or data, it applies actuarial judgment in the determination and selection of development factors to develop reserve liabilities.

Inflation and a higher mix of more complex repairs, combined with skilled labor shortages, have increased physical damage loss costs.

Medical inflation, increased treatment trends, higher attorney representation, rising litigation costs and more severe accidents have contributed to higher third-party bodily injury loss costs.

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.

2 unchanged sentences

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 claim frequency may result from changes in mix of business, driving behaviors, miles driven or other

Changes in auto current year claim severity are generally influenced by inflation in the medical and auto repair sectors, changes in attorney represented and litigated claim behavior, the effectiveness and efficiency of claim settlements and changes in mix of claim types.

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

The Company’s reserving process incorporates changes in

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

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.

5 unchanged sentences

The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims.

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

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

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Changes in reserve estimates, which

First Quarter 2026 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

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

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

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

Management believes that the reserve for property and casualty insurance claims and claims expense, net

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

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

Nine months ended September 30,

Three months ended March 31,

($ in millions) 2026 2025

10 unchanged sentences

Total paid ( 8,880 ) ( 10,034 )

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

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

Net balance as of March 31 33,372 34,096

Balance as of March 31 $ 41,320 $ 43,835

(1) Recoverables comprises reinsurance and indemnification recoverables.

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

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

This expense included losses from catastrophes of $ 1.24 billion and $ 2.20 billion in the three months ended March 31, 2026 and 2025, respectively, net of recoverables.

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

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

Non-catastrophe losses Catastrophe losses (2)

Excluding catastrophe losses Catastrophe

($ in millions)

1 unchanged sentence

2025 2026 2025

Three months ended September 30,

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

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

Other personal lines 72 54 ( 6 ) ( 3 ) 66 51

Commercial lines ( 80 ) 1 ( 5 ) — ( 85 ) 1

Other business lines ( 14 ) ( 3 ) — — ( 14 ) ( 3 )

Run-off Property-Liability (4)

146 59 — — 146 59

Protection Services — 1 — — — 1

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

Nine months ended September 30,

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

Three months ended March 31,

Auto $ ( 838 ) $ ( 238 ) $ ( 2 ) $ ( 11 ) $ ( 840 ) $ ( 249 )

Homeowners ( 98 ) ( 7 ) ( 14 ) ( 1 ) ( 112 ) ( 8 )

3 unchanged sentences

Run-off Property-Liability

151 65 — — 151 65

Protection Services — — — — — —

Total prior year reserve reestimates $ ( 1,016 ) $ ( 235 ) $ 12 $ ( 16 ) $ ( 1,004 ) $ ( 251 )

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

(1) Reserve releases are shown in parentheses.

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

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

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

Third Quarter 2025 Form 10-Q 35

(2) 2025 includes $ 66 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024.

Favorable auto severity, excluding catastrophes, emergence continued during the quarter, reflecting improved prior period loss development and better than expected claim outcomes.

In the three months ended March 31, 2026, auto reserve releases included $ 675 million related to auto injury coverages and $ 163 million related to other auto coverages.

Approximately 70 % of the auto injury reserve releases relate to accident years 2023 and 2024.

Approximately 90 % of other auto reserve releases relate to physical damage coverage from accident years 2024 and 2025, with 97 % of estimated ultimate losses paid as of March 31, 2026.

For the three months ended March 31, 2026, the reserve releases from homeowners, other personal lines and commercial lines relate to better than expected severity developments in homeowners and consumer household property damage and injury coverages.

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Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

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

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Property and casualty insurance premiums earned

3 unchanged sentences

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

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Property and casualty insurance claims and claims expense (2)

2 unchanged sentences

( 111 ) ( 19 )

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

(1) 2026 includes business reinsured to Nationwide Life Insurance Company in connection with the group health sale in the third quarter of 2025.

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

1 unchanged sentence

Reinsurance and indemnification recoverables, net

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

($ in millions) March 31, 2026 December 31, 2025

Property and casualty

5 unchanged sentences

Rollforward of credit loss allowance for reinsurance recoverables

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Property and casualty (1) (2)

Beginning balance $ ( 54 ) $ ( 63 )

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

Decrease (increase) in the provision for credit losses ( 1 ) —

Write-offs — —

2 unchanged sentences

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

Indemnification programs

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

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

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

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

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

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

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

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

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

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

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Notes to Condensed Consolidated Financial Statements

Note 10 Company Restructuring

4 unchanged sentences

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

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

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

These charges are primarily recorded in the Allstate Protection segment.

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $ 5 million and $ 16 million during the three months ended March 31, 2026 and 2025, respectively.

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

First Quarter 2026 Form 10-Q 33

Notes to Condensed Consolidated Financial Statements

Restructuring activity during the period

2 unchanged sentences

Expense incurred

Adjustments to liability ( 2 ) ( 3 ) ( 5 )

Payments and non-cash charges ( 10 ) 1 ( 9 )

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

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

Restructuring liability as of March 31, 2026 $ 17 $ 2 $ 19

As of March 31, 2026, the cumulative amount incurred to date for active programs related to employee severance and relocation benefit expenses totaled $ 22 million.

Note 11 Guarantees and Contingent Liabilities

1 unchanged sentence

The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers.

The Company routinely reviews its exposure to assessments from these plans, facilities and government programs.

Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations in the last two years.

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 losses that surpass the capitalization of these facilities or assessments from these facilities.

California FAIR Plan Association On February 11, 2025, the FAIR Plan received regulatory approval to assess member insurers $ 1.00 billion.

The Company’s personal lines and commercial lines average market share used for the assessment was 4.6 % and 2.0 %, respectively, net of credits.

Members are allowed to request the state insurance commission’s approval to collect temporary supplemental fees from policyholders in the state in order to recoup amounts assessed.

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

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

amounts paid.

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

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

In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures.

5 unchanged sentences

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

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

Third Quarter 2025 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

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

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 September 30, 2025.

The aggregate liability balance related to all guarantees was immaterial as of March 31, 2026.

Regulation and compliance

The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions.

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

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, restrict the use of advanced technologies, non-traditional data sources, or large language models 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.

5 unchanged sentences

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.

34 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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;

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;

20 unchanged sentences

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

The Company does not establish accruals for such matters when the

38 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

The Company 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.

12 unchanged sentences

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.

Disclosure of the estimate of the reasonably possible loss or range of loss above the

First Quarter 2026 Form 10-Q 35

Notes to Condensed Consolidated Financial Statements

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.

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.

7 unchanged sentences

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.

Claims related proceedings The Company is subject to lawsuits in multiple states 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:

Allstate Fire and Casualty Insurance Company, et al.

filed June 2022);

Thompson, et al.

Allstate Insurance Company (Circuit Court of Cole Co., Mo.

filed June 2022);

Allstate Vehicle and Property Insurance Compan y (Circuit Court of Cole Co., Mo.

filed October 2022);

and Hernandez v.

Allstate Vehicle and Property Insurance Company (D.

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 plaintiffs seek damages and declaratory relief.

The Company is subject to lawsuits in multiple states alleging that the Company underpays total loss vehicle physical damage claims on auto policies.

The alleged systematic underpayments result from the following theories:

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

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

Third Quarter 2025 Form 10-Q 39

Notes to Condensed Consolidated Financial Statements

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

The Company is currently defending the following lawsuits:

Allstate Insurance Company (N.D.

Ohio filed June 2023);

Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (N.D.

Ohio filed August 2023);

Esurance Property and Casualty Insurance Company and National General Insurance Company (E.D.N.Y.

filed February 2024);

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

filed October 2024) and Tang v.

Allstate Insurance Company, et al.

filed September 2025).

No classes have been certified in any of these matters.

A settlement has been reached in Jarrett-Kelly v.

Direct General Insurance Agency, Inc .

(Circuit Court of Pulaski Co., Ark.

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

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

District Court for the District of Arizona that alleges underpayment of uninsured/underinsured motorist claims, Dorazio v.

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 plaintiffs seek damages, equitable relief, attorneys’ fees and costs.

The Company is subject to lawsuits in the U.S.

District Court for the District of Arizona that allege underpayment of uninsured/underinsured motorist claims, including Dorazio v.

Allstate Fire and Casualty Insurance Company, filed December 2022.

The plaintiffs allege that uninsured/underinsured motorist coverages must be stacked, which is combining separate uninsured/underinsured coverage limits of multiple vehicles into one higher coverage limit, where the defendants allegedly did not include specified policy language and did not provide specified notice to policyholders.

A settlement in principle has been reached in Loughran v.

MIC General Insurance Corporation, a second putative class action alleging the same claims.

In July 2023, the Arizona Supreme Court issued a ruling in Franklin v.

CSAA General Insurance , a matter involving another insurer.

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

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

Holguin (Pierce County Superior Court, Wash.

filed September 8, 2020).

The plaintiffs allege that, where statute permits, they are entitled to combine separate uninsured/underinsured coverage limits of multiple vehicles into one higher coverage limit.

The plaintiffs seek damages, punitive damages, and attorneys’ fees.

The court has granted preliminary approval of a settlement in one of the cases, Loughran v.

MIC General Insurance Corporation .

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.

1 unchanged sentence

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

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

Other proceedings The Company is defending two putative class actions in the U.S.

District Court for the Eastern District of California, Holland Hewitt v.

Allstate Life Insurance Company filed May 2020 and Farley v.

Lincoln Benefit Life Company (“LBL”) filed December 2020, following the sale of ALIC.

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

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

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

Recommendations denying class certification in Hewitt.

Plaintiffs filed their objection to the Magistrate’s recommendation.

In these cases, plaintiffs generally allege that the defendants failed to comply with certain California statutes which address contractual grace periods and lapse notice requirements for certain life insurance policies.

Plaintiffs claim that these statutes apply to life insurance policies that existed before the statutes’ effective date.

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 subject to lawsuits in the U.S.

District Court for the Eastern District of California, including Holland Hewitt v.

Allstate Life Insurance Company , filed May 2020 related to the alleged failure by former life insurance subsidiaries to comply with certain California statutes which address contractual grace periods and lapse notice requirements for certain life insurance policies.

The plaintiffs seek damages and injunctive relief.

Similar litigation is pending against other insurance carriers.

In August 2021, the California Supreme Court in McHugh v.

Protective Life , a matter involving another insurer, determined that the statutory notice requirements apply to life insurance policies issued before the statutes’ effective date.

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

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

District Court for the Western District of Pennsylvania against National General Holdings Corp., National General Insurance Company, National General Lender Services, Inc.

and Newport Management Corp.

The suit alleges that certain services that National General provided as a vendor to a large national bank for its collateral protection insurance program violated the Financial Institutions, Reform, Recovery, and Enforcement Act of 1989 (the “Act”), and it seeks civil monetary penalties available under the Act.

The Company is subject to a lawsuit brought by the Department of Justice in the U.S.

District Court for the Western District of Pennsylvania, United States v.

National General Holdings Corp., et al., filed July 2024, which 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”).

The suit 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.

3 unchanged sentences

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.

Plaintiffs generally allege

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Notes to Condensed Consolidated Financial Statements

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.

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

ACP Re, Ltd., et al.

1 unchanged sentence

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.

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.

1 unchanged sentence

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

40 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Note 12 Benefit Plans

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

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

Three months ended March 31,

($ in millions) 2026 2025

1 unchanged sentence

Service cost $ 30 $ 25

$ 28 $ 26 $ 79 $ 52

Interest cost 58 60

4 unchanged sentences

Remeasurement (gains) losses 21 76

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

Pension net cost $ 27 $ 83

Postretirement benefits

4 unchanged sentences

Remeasurement of benefit obligation

Remeasurement of plan assets — — — —

Remeasurement (gains) losses ( 2 ) 2

Postretirement net cost $ — $ 9 $ 5 $ 10

Postretirement net (benefit) cost $ ( 1 ) $ 4

Pension and postretirement benefits

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Remeasurement (gains) losses 19 78

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

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

Total net cost $ 26 $ 87

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

2 unchanged sentences

Pension and postretirement benefits remeasurement gains and losses

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

Three months ended March 31,

($ in millions) 2026 2025

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Remeasurement (gains) losses $ 19 $ 78

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

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

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

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

Third Quarter 2025 Form 10-Q 41

First Quarter 2026 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

credit spreads.

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

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

Remeasurement losses of $ 19 million for the first quarter of 2026 are primarily related to unfavorable asset performance compared to the expected return on plan assets, partially offset by an increase in the liability discount rate that reduced the pension and postretirement benefit obligations.

For the first quarter of 2026, the actual return on plan assets was lower than the expected return due to lower fixed income valuations driven by higher interest rates and wider credit spreads and lower public equity valuations.

The weighted average discount rate used to measure the pension benefit obligation increased to 5.73 % on March 31, 2026 compared to 5.52 % on December 31, 2025 resulting in gains for the first quarter of 2026.

Note 13 Supplemental Cash Flow Information

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

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

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

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

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

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

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

Non-cash investing activities include $ 14 million and $ 15 million related to mergers and exchanges completed with equity securities, bank loans, and limited partnerships for the three months ended March 31, 2026 and 2025, respectively.

Non-cash investing activities include $ 3 million related to warrants received as consideration for management services that were exercised, resulting in an increase in equity method investments for the three months ended March 31, 2026.

Non-cash financing activities include $ 34 million and $ 24 million related to the issuance of Allstate common shares for vested equity awards for the three months ended March 31, 2026 and 2025, respectively.

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

amounts included in the measurement of lease liabilities of $ 23 million and $ 27 million for the three months ended March 31, 2026 and 2025, respectively.

Non-cash operating activities include $ 3 million and $ 13 million related to right-of-use assets obtained in exchange for lease obligations for the three months ended March 31, 2026 and 2025, respectively.

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

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

($ in millions) Nine months ended September 30,

($ in millions) Three months ended March 31,

Cash flows from operating activities

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Net change in short-term investments 328 114

Operating cash flow provided (used) 183 ( 130 )

Net change in cash ( 1 ) —

Net change in proceeds managed $ 182 $ ( 130 )

Operating cash flow (used) $ ( 140 ) $ ( 96 )

Net change in liabilities

1 unchanged sentence

Liabilities for collateral, end of period ( 2,074 ) ( 2,137 )

Operating cash flow (used) provided $ ( 182 ) $ 130

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Notes to Condensed Consolidated Financial Statements

Operating cash flow provided $ 140 $ 96

Note 14 Other Comprehensive Income (Loss)

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

($ in millions) Three months ended September 30,

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

Unrealized net holding gains and losses arising during the period, net of related offsets $ 482 $ ( 105 ) $ 377 $ 1,753 $ ( 388 ) $ 1,365

reclassification adjustment of realized capital gains and losses 79 ( 17 ) 62 83 ( 17 ) 66

Unrealized net capital gains and losses 403 ( 88 ) 315 1,670 ( 371 ) 1,299

Unrealized foreign currency translation adjustments 51 ( 11 ) 40 18 ( 4 ) 14

Unamortized pension and other postretirement prior service credit (1)

( 1 ) — ( 1 ) — — —

Discount rate for reserve for future policy benefits

1 — 1 ( 46 ) 10 ( 36 )

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

Nine months ended September 30,

($ in millions) Three months ended March 31,

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

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— — — 6 ( 1 ) 5

Other comprehensive income (loss) $ 1,514 $ ( 327 ) $ 1,187 $ 1,226 $ ( 275 ) $ 951

Other comprehensive (loss) income $ ( 700 ) $ 153 $ ( 547 ) $ 485 $ ( 105 ) $ 380

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

Third Quarter 2025 Form 10-Q 43

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Report of Independent Registered Public Accounting Firm

1 unchanged sentence

Results of Review of Interim Financial Information

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

We have reviewed the accompanying condensed consolidated statement of financial position of The Allstate Corporation and subsidiaries (the “Company”) as of March 31, 2026, the related condensed consolidated statements of operations, comprehensive income (loss), shareholders’ equity and cash flows for the three-month periods ended March 31, 2026 and 2025, and the related notes (collectively referred to as the “interim financial information”).

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

12 unchanged sentences

Chicago, Illinois

November 5, 2025

44 www.allstate.com

April 29, 2026

First Quarter 2026 Form 10-Q 39

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

What changed 10-Q

Item 1. Financial Statements