What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-04-29 compared with 2025-11-05 · 277 added, 406 removed, 659 unchanged (51% of the section changed)

3 unchanged sentences

contained herein, and with the discussion, analysis, consolidated financial statements and notes thereto in Part I.

of The Allstate Corporation annual report on Form 10-K for 2024, filed February 24, 2025.

of The Allstate Corporation annual report on Form 10-K for 2025.

Further analysis of our insurance segments Allstate Protection and Run-off Property-Liability, together Property-Liability Operations, and Protection Services, is provided in Management’s Discussion and Analysis (“MD&A”).

The segments are consistent with the way in which the chief operating decision maker reviews financial performance and makes decisions about the allocation of resources.

The dispositions of the employer voluntary benefits (“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.

Measuring segment profit or loss

1 unchanged sentence

We use these measures in our evaluation of results of operations to analyze profitability.

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), 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 accounting principles generally accepted in the United States of America (“GAAP”).

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

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

7 unchanged sentences

Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S.

government fiscal and monetary policies, the Russia/Ukraine conflict, supply chain disruptions and labor shortages.

Tariffs Beginning on April 2, 2025, the U.S.

government announced additional tariffs on goods imported to the U.S.

We regularly evaluate scenarios to understand the potential impact of tariffs on our businesses and incorporate estimates of the impact into our development of reserves for claims.

The evolving and uncertain global trade environment makes it difficult to predict the full effect on our business.

The following factors may impact operations at levels beyond what we are currently observing:

government fiscal and monetary policies, major combat operations in Iran, the Russia/Ukraine conflict, supply chain disruptions, volatility in global energy markets and labor shortages.

Increased oil prices may contribute to higher transportation, manufacturing and repair costs.

sustained, these conditions may change claims frequency in auto coverages and may increase severity in auto and homeowners coverages and place additional pressure on operating costs and consumer affordability.

We continue to monitor these conditions and reflect our current expectations in pricing and reserving;

however, uncertainty remains regarding the extent and duration of these impacts.

Tariffs The U.S.

implemented and continues to modify tariff measures and pursue additional trade actions, contributing to uncertainty in global trade policy, inflation and supply chains.

These costs are embedded within overall claims severity and are influenced by energy and commodity input costs, supply chain conditions, labor availability and broader economic trends.

We evaluate scenarios to understand the potential impact of tariffs on our businesses and incorporate estimates of the impact into our development of reserves for claims.

The evolving and uncertain global trade environment makes it difficult to predict the full effect on our business, and it may take time for the impact of inflation to become evident.

Adverse effects could include:

• Higher new and used vehicle pricing and replacement parts, increasing claims costs in Allstate Protection and Dealer Services

6 unchanged sentences

• Higher claims costs at Protection Plans

• Bad debt and credit allowance exposure in all businesses

• Adverse impacts on investment valuations and liquidity for market-based and performance-based investments

• Increased bad debt expense and credit allowance exposure as consumer financial conditions deteriorate

• Unfavorable impacts on investment valuations, liquidity and returns due to volatility in broader financial markets, interest rates and energy prices

This is not inclusive of all potential impacts and should not be treated as such.

Third Quarter 2025 Form 10-Q 45

Corporate strategy

1 unchanged sentence

increase personal property-liability market share and expand protection offerings by leveraging the Allstate brand, customer base and capabilities.

Transformative Growth is about creating a business model, capabilities and culture that continually transform to better serve customers.

This is done by providing affordable, simple and connected protection through multiple distribution methods.

Transformative Growth is a comprehensive plan to improve Allstate’s competitive position by providing affordable, simple and connected protection through multiple distribution methods.

The ultimate objective is to enhance customer value to drive growth in all businesses.

40 www.allstate.com

In the personal property-liability businesses, this has five key components:

5 unchanged sentences

We are expanding Protection Services businesses internationally and by leveraging the Allstate brand, customer base and capabilities.

On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits (“EVB”) business.

We recorded a gain on the sale of $888 million or $641 million, after-tax for the nine months ended September 30, 2025.

On July 1, 2025, we closed the sale of Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business.

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

See Note 3 of the condensed consolidated financial statements for further information on the EVB and group health dispositions.

Consolidated net income applicable to common shareholders

($ in millions)

Consolidated net income applicable to common shareholders increased $2.56 billion to $3.72 billion in the third quarter of 2025 and increased $3.71 billion to $6.36 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher underwriting income and gains on dispositions.

Total revenues

($ in millions)

Total revenues increased 3.8% to $17.26 billion in the third quarter of 2025 and increased 5.8% to $50.34 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher auto and homeowners insurance policies in force and premium rate increases.

Net investment income

($ in millions)

Net investment income increased $166 million to $949 million in the third quarter of 2025 and increased $298 million to $2.56 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher market-based and performance-based investment results.

46 www.allstate.com

Financial Highlights

Investments totaled $82.33 billion as of September 30, 2025, increasing from $72.61 billion as of December 31, 2024.

Allstate shareholders’ equity was $27.51 billion as of September 30, 2025, increasing from $21.44 billion as of December 31, 2024, primarily due to net income and an increase in unrealized net capital gains on investments in 2025, partially offset by common share repurchases and dividends to shareholders.

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common

shares outstanding) was $95.95 as of September 30, 2025, an increase of 36.4% from $70.35 as of September 30, 2024, and an increase of 32.6% from $72.35 as of December 31, 2024.

Return on average Allstate common shareholders’ equity for the twelve months ended September 30, 2025, was 37.2%, an increase of 11.1 points from 26.1% for the twelve months ended September 30, 2024.

The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending September 30, 2025.

Summarized consolidated financial results

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

($ in millions)

Property and casualty insurance premiums $ 15,253 $ 14,333 $ 44,992 $ 41,797

Accident and health insurance premiums and contract charges 110 487 832 1,439

Other revenue 691 781 2,200 2,129

Net investment income 949 783 2,557 2,259

Net gains (losses) on investments and derivatives 252 243 (241) (24)

Total revenues 17,255 16,627 50,340 47,600

Costs and expenses

Property and casualty insurance claims and claims expense (8,654) (10,409) (29,718) (30,711)

Accident, health and other policy benefits (67) (317) (588) (904)

Amortization of deferred policy acquisition costs (2,101) (2,037) (6,264) (5,977)

Operating, restructuring and interest expenses (2,383) (2,349) (6,994) (6,471)

Pension and other postretirement remeasurement gains (losses) 108 (26) 30 (15)

Amortization of purchased intangibles (59) (71) (175) (210)

Total costs and expenses (13,156) (15,209) (43,709) (44,288)

Gain on disposition of operations

720 — 1,610 —

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

Income tax expense (1,075) (254) (1,802) (603)

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

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

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

Preferred stock dividends (29) (29) (88) (88)

Net income applicable to common shareholders $ 3,717 $ 1,161 $ 6,362 $ 2,651

Segment highlights

Allstate Protection underwriting income was $3.04 billion in the third quarter of 2025 compared to underwriting income of $555 million in the third quarter of 2024, due to lower catastrophe losses, increased premiums earned and the benefit of prior year reserve releases.

Underwriting income totaled $4.69 billion in the first nine months of 2025 compared to underwriting income of $1.32 billion in the first nine months of 2024, due to increased premiums earned and the benefit of prior year reserve releases, partially offset by higher expenses.

Catastrophe losses were $558 million and $4.75 billion in the third quarter and first nine months of 2025, respectively, compared to $1.70 billion and $4.55 billion in the third quarter and first nine months of 2024, respectively.

Premiums written increased 6.3% to $15.63 billion in the third quarter of 2025 and increased 6.7% to $44.97 billion in the first nine months of 2025 compared to the same periods of 2024, reflecting higher auto and homeowners insurance policies in force and premium rate increases.

Third Quarter 2025 Form 10-Q 47

Protection Services adjusted net income was $46 million in the third quarter of 2025 compared to $58 million in the third quarter of 2024.

Adjusted net income was $161 million the first nine months of 2025 compared to $167 million in the nine months of 2024.

The decrease in both periods was primarily due to higher expenses at Arity and increased claims at Protection Plans, partially offset by premium growth at Protection Plans.

Premiums and other revenue increased 12.7% to $844 million the third quarter of 2025 and increased 13.5% to $2.45 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to growth at Protection Plans.

Income taxes The effective tax rate is the ratio of income tax expense (benefit) divided by income (loss) from operations before income tax expense.

For the first nine months ended September 30, 2025, we reported an effective tax rate of 21.9% based on total

income tax expense of $1.80 billion on total income from operations before income tax expense of $8.24 billion.

The effective rate for the first nine months ended September 30, 2025, is higher than the federal statutory rate of 21%, primarily due to non-deductible goodwill and higher state income taxes arising from the sales of the EVB and group health businesses, offset by tax benefits derived from tax credits, tax-exempt interest income and share-based payments.

For the first nine months ended September 30, 2024, we reported an effective tax rate of 18.2% based on a total income tax expense of $603 million on income from operations before income tax benefit of $3.31 billion.

The effective tax rate for the first nine months ended 2024 was lower than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, shared-based payments and tax-exempt interest income.

Reconciliation of the statutory federal income tax rate to the effective income tax rate

Three months ended

September 30, Nine months ended

September 30,

($ in millions) 2025 2024 2025 2024

Income (loss) before income taxes

$ 4,819 $ 1,418 $ 8,241 $ 3,312

Statutory federal income tax rate on income from operations $ 1,012 21.0 % $ 298 21.0 % $ 1,731 21.0 % $ 696 21.0 %

Non-deductible goodwill (1)

42 0.9 — — 94 1.1 — —

State income taxes 58 1.2 12 0.8 86 1.0 31 0.9

Change in valuation allowance 1 — 4 0.3 3 — (2) (0.1)

Tax credits (21) (0.4) (19) (1.3) (49) (0.6) (45) (1.3)

Tax-exempt income (8) (0.2) (8) (0.6) (27) (0.3) (19) (0.5)

Share-based payments (3) (0.1) (15) (1.0) (23) (0.2) (29) (0.9)

Uncertain tax positions — — (3) (0.2) (14) (0.1) (3) (0.1)

Other (6) (0.1) (15) (1.1) 1 — (26) (0.8)

Effective income tax rate on income from operations $ 1,075 22.3 % $ 254 17.9 % $ 1,802 21.9 % $ 603 18.2 %

(1) The sales of the employer voluntary benefits and group health businesses on April 1, 2025 and July 1, 2025, respectively, resulted in the disposal of non-deductible goodwill.

On July 4, 2025, H.R.

1 was signed into law, making a number of changes to the U.S.

The legislation makes many provisions permanent that were originally enacted under the 2017 Tax Cuts and Jobs Act, in addition to implementing new measures that directly affect corporate taxpayers.

Key provisions include the permanent reinstatement of full and immediate expensing for domestic research and development expenditures, new limitations on the deductibility of corporate charitable contributions, and a substantial rollback of renewable energy tax credits, including transferability of certain energy-related credits, while at the same time expanding availability of tax incentives for affordable housing developments.

These changes do not have a significant impact to our consolidated financial statements.

48 www.allstate.com

Consolidated net income applicable to common shareholders increased $1.86 billion to $2.43 billion in the first quarter of 2026 compared to the first quarter of 2025, primarily due to higher underwriting income.

Total revenue increased 3.0% to $16.94 billion in the first quarter of 2026 compared to the first quarter of 2025, primarily due to higher auto and homeowners insurance policies in force and to a lesser extent homeowners premium rate increases.

Net investment income increased $84 million to $938 million in the first quarter of 2026, primarily due to higher market-based investment results.

Financial highlights

Investments totaled $85.16 billion as of March 31, 2026, increasing from $83.24 billion as of December 31, 2025.

Allstate shareholders’ equity was $31.61 billion as of March 31, 2026, increasing from $30.61 billion as of December 31, 2025, primarily due to net income, partially offset by common share repurchases, unrealized net capital losses and dividends to shareholders.

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $113.52 as of March 31, 2026, an increase of 52.2% from $74.61 as of March 31, 2025, and an increase of 4.7% from $108.45 as of December 31, 2025.

Return on average Allstate common shareholders’ equity for the twelve months ended March 31, 2026, was 48.4%, an increase of 27.0 points from 21.4% for the twelve months ended March 31, 2025.

The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending March 31, 2026.

First Quarter 2026 Form 10-Q 41

Property-Liability Operations

5 unchanged sentences

Management reviews assets at the Property-Liability level for decision-making purposes.

For segment results, services provided by Protection Services to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective segments.

The effects of inter-segment transactions are eliminated in the consolidated results.

GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows:

11 unchanged sentences

• Effect of prior year reserve reestimates on combined ratio

• Effect of amortization of purchased intangibles on combined ratio

• Effect of restructuring and related charges on combined ratio

• Effect of amortization of purchased intangibles on combined ratio

• Effect of Run-off Property-Liability business on combined ratio:

3 unchanged sentences

A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy.

Lender-placed policies are excluded from policy counts because relationships are with the lenders.

Lender-placed policies are excluded from policy counts.

• New issued applications :

3 unchanged sentences

Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals.

Average premiums represent the appropriate policy term for each line.

Average premiums represent the appropriate policy term for each line, typically six months for an auto policy and twelve months for a homeowners policy.

• Implemented rate changes:

1 unchanged sentence

states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written.

Third Quarter 2025 Form 10-Q 49

42 www.allstate.com

Property-Liability Operations

Underwriting results

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

Three months ended March 31,

($ in millions, except ratios) 2026 2025

6 unchanged sentences

Restructuring and related charges

(15) (23) (44) (45)

Amortization of purchased intangibles (39) (46)

3 unchanged sentences

Catastrophe reserve reestimates (1)

(28) (14) (38) (314)

Total catastrophe losses $ 1,240 $ 2,202

Non-catastrophe reserve reestimates (1)

Prior year reserve reestimates, excluding catastrophes (1)

$ (1,016) $ (235)

4 unchanged sentences

Expense ratio (2)

21.8 21.5 21.3 21.1

Combined ratio 82.0 97.4

3 unchanged sentences

Effect of restructuring and related charges on combined ratio

0.1 0.1 0.1 0.1

Effect of amortization of purchased intangibles on combined ratio 0.2 0.3

2 unchanged sentences

(2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.

50 www.allstate.com

Allstate Protection Segment Results

First Quarter 2026 Form 10-Q 43

Segment Results Allstate Protection

Allstate Protection Segment

Underwriting results

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

Three months ended March 31,

($ in millions) 2026 2025

9 unchanged sentences

Catastrophe losses $ 1,240 $ 2,202

Underwriting income was $3.04 billion in the third quarter of 2025 compared to underwriting income of $555 million in the third quarter of 2024, due to lower catastrophe losses, increased premiums earned and the benefit of prior year reserve releases.

Underwriting income increased $3.37 billion to $4.69 billion in the first nine months of 2025 compared to the first nine months of 2024, due to increased premiums earned and the benefit of prior year reserve releases, partially offset by higher expenses.

Change in underwriting results from prior year period - three months ended

($ in millions)

Change in underwriting results from prior year period - nine months ended

($ in millions)

Third Quarter 2025 Form 10-Q 51

Segment Results Allstate Protection

Underwriting income increased $2.30 billion in the first quarter of 2026 compared to the first quarter of 2025, due to lower catastrophe losses, the benefit of prior year reserve releases and increased premiums earned, partially offset by higher expenses.

Underwriting income (loss)

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

Three months ended March 31,

($ in millions) 2026 2025

$ 1,729 $ 816

1,107 60 580 249

Other personal lines (1)

61 (18) (15) (66)

Commercial lines 21 16

93 (16) 92 (224)

Other business lines (2)

52 40 147 140

Answer Financial 3 7

Total $ 2,659 $ 364

(1) Represents commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products and lender-placed products.

Premium measures and statistics include PIF, new issued applications and average premiums to analyze our premium trends.

(1) Includes renters, condominium, landlord, boat, umbrella, manufactured home, scheduled personal property, auto assigned risk and valuable item protection products.

(2) Other business lines represents commissions earned from brokered property and casualty and life and annuity products, and lender-placed products.

Change in underwriting results from prior year period - three months ended

($ in millions)

44 www.allstate.com

Allstate Protection Segment Results

Premium measures and statistics include PIF, new issued applications and average premiums.

Premiums written is the amount of premiums charged for policies issued during a reporting period.

2 unchanged sentences

Premiums written

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

Three months ended March 31,

($ in millions) 2026 2025

6 unchanged sentences

Premiums earned

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

Three months ended March 31,

($ in millions) 2026 2025

5 unchanged sentences

Total premiums earned $ 14,802 $ 14,027

Reconciliation of premiums written to premiums earned

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

($ in millions) 2025 2024 2025 2024

Total premiums written $ 15,630 $ 14,707 $ 44,974 $ 42,169

(Increase) decrease in unearned premiums

(1,119) (1,075) (2,158) (2,233)

Other 22 62 90 (3)

Total premiums earned $ 14,533 $ 13,694 $ 42,906 $ 39,933

Policies in force

As of September 30,

As of March 31,

(In thousands)

4 unchanged sentences

Total 38,576 37,712

52 www.allstate.com

Allstate Protection Segment Results

Auto insurance premiums written increased 3.5% or $330 million in the third quarter of 2025 and increased 3.8% or $1.07 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to the following factors:

• Rate increases that have moderated as we focus on growth and continued rollout of Affordable, Simple and Connected auto products.

In the nine months ended September 30, 2025, rate increases of 3.6% were implemented in 52 locations, resulting in total insurance premium impact of 2.4%

• PIF increased 1.3% or 334 thousand to 25,332 thousand as of September 30, 2025 compared to September 30, 2024

Auto insurance premiums written increased $2 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to the following factors:

• Increased new issued applications in all channels

• In locations not achieving acceptable returns, we expect to continue to pursue targeted rate increases.

In states where we are achieving acceptable returns, we will focus on implementing rates to keep pace with increasing costs and explore opportunities for rate investments towards growth

• PIF increased 2.6% or 658 thousand to 25,758 thousand as of March 31, 2026 compared to March 31, 2025

• Lower Allstate brand average premiums resulting from a shift in product mix towards affordable, simple and connected protection

• We will pursue rate adjustments in states where we are achieving acceptable returns, while implementing rates where needed to keep pace with increasing costs

Auto premium measures and statistics

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

2025 2024 Change 2025 2024 Change

Three months ended March 31,

2026 2025 Change

New issued applications (in thousands)

3 unchanged sentences

Independent agency

696 597 16.6 2,067 1,714 20.6

Direct 848 757 12.0

1 unchanged sentence

Allstate brand average premium $ 832 $ 853 (2.5) %

Homeowners insurance premiums written increased 13.1% or $534 million in the third quarter of 2025 and increased 15.4% or $1.66 billion in the first nine months of 2025 compared to the same periods of 2024, primarily due to the following factors:

• Higher Allstate brand average premiums from implemented rate increases and inflation in insured home replacement costs and other aging factor adjustments, combined with policies in force growth

• In the nine months ended September 30, 2025, rate increases of 8.0% were implemented in 44 locations, resulting in total estimated insurance premium impact of 4.3%, excluding the impact of changes in insured home replacement costs

• PIF increased 2.1% or 159 thousand to 7,642 thousand as of September 30, 2025 compared to September 30, 2024, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel

Homeowners insurance premiums written increased 8.3% or $288 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to the following factors:

• Higher Allstate brand average premiums resulting from rate increases and inflation in insured home replacement costs, combined with growth in policies in force

First Quarter 2026 Form 10-Q 45

Segment Results Allstate Protection

• In the three months ended March 31, 2026, rate increases of 7.2% were implemented resulting in a total estimated insurance premium impact of 1.4%, excluding the impact of changes in insured home replacement costs

• PIF increased 2.5% or 190 thousand to 7,739 thousand as of March 31, 2026 compared to March 31, 2025, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel

• Increased new issued applications in direct and exclusive agency channels

We are not writing new homeowners business in Florida.

We are also non-renewing certain policies in Florida.

In Florida, we are not writing new homeowners business and are substantially complete with the non-renewal of certain policies.

We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.

Homeowners premium measures and statistics

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

2025 2024 Change 2025 2024 Change

Three months ended March 31,

2026 2025 Change

New issued applications (in thousands)

2 unchanged sentences

Independent agency 36 47 (23.4)

69 39 76.9 164 96 70.8

Total new issued applications 358 320 11.9 %

Allstate brand average premium $ 2,360 $ 2,210 6.8 %

Other personal lines premiums written increased 8.6% or $70 million in the third quarter of 2025 and increased 6.8% or $159 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers.

Other personal lines premiums written increased 5.3% or $39 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers.

We are not writing new condominium business in Florida, and we are non-renewing certain policies in Florida.

Commercial lines premiums written decreased 2.9% or $3 million in the third quarter of 2025 compared to the third quarter of 2024, primarily driven by the run-off of Allstate brand, partially offset by growth in National General brand.

Commercial lines premiums written decreased 28.2% or $116 million in the first nine months of 2025 compared to the first nine months of 2024, primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew policies.

We are committed to

Third Quarter 2025 Form 10-Q 53

Segment Results Allstate Protection

offering comprehensive commercial products to customers through our exclusive agency, independent agency and direct channels.

These offerings include solutions from National General as well as brokered products tailored to meet diverse needs across our business customers.

Other business lines premiums written decreased 4.6% or $8 million in the third quarter of 2025 compared to the third quarter of 2024, due to lower

lender-placed auto premiums.

Other business lines premiums written increased 6.3% or $29 million in the first nine months of 2025 compared to the first nine months of 2024, due to growth in the lender-placed homeowners business.

Commercial lines premiums written increased 19.1% or $18 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to an increase in new issued applications and higher average premiums from current offerings.

We offer comprehensive

commercial products, including brokered solutions, to customers through our exclusive agency, independent agency and direct channels.

Other business lines premiums written decreased 11.0% or $19 million in the first quarter of 2026 compared to the first quarter of 2025, due to lower lender-placed auto premiums.

GAAP operating ratios include loss ratio, expense ratio and combined ratio to analyze our profitability trends.

4 unchanged sentences

2026 2025 2026 2025 2026 2025

Three months ended September 30,

60.6 71.9 21.4 22.9 82.0 94.8

Homeowners 48.5 76.3 23.0 21.9 71.5 98.2

Other personal lines (1)

75.1 96.2 17.3 6.3 92.4 102.5

Commercial lines (19.2) 84.8 25.3 25.8 6.1 110.6

Other business lines (2)

Three months ended March 31,

60.6 69.3 21.3 22.0 81.9 91.3

Total 57.3 74.4 21.8 21.5 79.1 95.9

Impact of amortization of purchased intangibles 0.3 0.4 0.3 0.4

Impact of restructuring and related charges 0.1 0.1 0.1 0.1

Nine months ended September 30,

Auto 64.9 73.8 21.5 21.8 86.4 95.6

Homeowners 61.5 91.8 22.0 20.5 83.5 112.3

3 unchanged sentences

Other business lines 35.9 49.7 26.5 26.0 62.4 75.7

38.8 55.7 31.4 12.3 70.2 68.0

Total 60.7 76.0 21.3 21.4 82.0 97.4

1 unchanged sentence

Impact of restructuring and related charges — 0.1 — 0.1

(1) Expense ratio includes other revenue of $43 million and $134 million for the three and nine months ended September 30, 2025, respectively, compared to $97 million and $161 million for the three and nine months ended September 30, 2024, respectively, for fees on auto assigned risk policies.

(2) Expense ratio includes profit-sharing commissions on lender-placed business, which decreased in 2024 due to higher losses and increased in 2025 as losses declined.

(1) Expense ratio includes other revenue of $44 million for the three months ended March 31, 2026 and March 31, 2025, for fees on auto assigned risk policies.

(2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation.

5 unchanged sentences

2026 2025 2026 2025 2026 2025 2026 2025

Three months ended September 30,

Three months ended March 31,

Auto 60.6 69.3 0.9 2.2 (8.8) (2.6) — (0.1)

4 unchanged sentences

Total 60.7 76.0 8.4 15.7 (6.8) (1.8) 0.1 (0.1)

Nine months ended September 30,

Auto 64.9 73.8 1.7 2.7 (4.1) (1.1) (0.1) (0.1)

Homeowners 73.4 75.9 34.6 34.7 (0.3) (3.9) — (2.8)

Other personal lines 83.9 91.5 12.2 17.0 6.1 7.9 (0.4) (0.3)

Commercial lines 42.7 120.1 0.6 2.9 (32.9) 33.3 — (1.0)

Other business lines 38.8 55.7 11.7 9.8 (7.9) 0.2 — —

Total 67.8 75.6 11.1 11.4 (2.8) (1.0) (0.1) (0.8)

(1) The ten-year average effect of total catastrophe losses on the total combined ratio was 8.6 points and 10.3 points in the third quarter and first nine months of 2025, respectively.

(2) The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 24.8 points and 32.9 points in the third quarter and first nine months of 2025, respectively.

Auto loss ratio decreased 11.3 points in the third quarter of 2025 and decreased 8.9 points in the first nine months of 2025 compared to the same periods of 2024, driven by increased earned premiums, lower claim frequency and the benefit of prior year non-catastrophe reserve releases.

Estimated report year 2025 incurred claim severity for Allstate brand increased compared to report year 2024 for major coverages due to higher repair costs, mix of total loss frequency, medical consumption and attorney representation.

Gross claim frequency decreased relative to the prior year.

We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections and accelerating resolution of bodily injury claims.

Homeowners loss ratio decreased 27.8 points in the third quarter of 2025 compared to the third quarter of 2024, primarily due to lower catastrophe losses and increased premiums earned.

Homeowners loss ratio decreased 2.5 points in the first nine months of 2025 compared to the first nine months of 2024, primarily due to increased premiums earned, partially offset by higher losses.

Gross claim frequency, excluding catastrophes, decreased in the third quarter and first nine months of 2025 compared to the same periods of 2024.

Paid claim severity, excluding catastrophes, increased in the third quarter and first nine months of 2025 compared to the same periods of 2024, due to a mix of fire and wind/hail perils.

(1) The ten-year average effect of first quarter catastrophe losses on the total combined ratio was 8.4 points.

(2) The ten-year average effect of first quarter homeowners catastrophe losses on the total homeowners combined ratio was 28.3 points.

Auto loss ratio decreased 8.7 points in the first quarter of 2026, compared to the same period of 2025, driven by the benefit of prior year reserve releases, excluding catastrophes, and increased earned premiums.

Estimated report year 2026 incurred claim severity for Allstate brand increased compared to report year 2025 for major coverages due to higher repair costs, mix of total loss frequency, medical inflation and attorney representation.

Homeowners loss ratio decreased 30.3 points in the first quarter of 2026 compared to the first quarter of 2025, primarily due to lower catastrophe losses and increased premiums earned.

Gross claim frequency, excluding catastrophes, decreased in the first quarter of 2026 compared to the same period of 2025 while paid claim severity, excluding catastrophes, increased primarily due to fire perils.

Homeowners paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the quarter.

Other personal lines loss ratio decreased 21.1 points in the third quarter of 2025 compared to the

third quarter of 2024, primarily due to lower losses and increased premiums earned.

Other personal lines loss ratio decreased 7.6 points in the first nine months of 2025 compared to the first nine months of 2024, primarily due to increased premiums earned, partially offset by higher non-catastrophe losses.

Commercial lines loss ratio decreased 104.0 points in the third quarter of 2025 and decreased 77.4 points in the first nine months of 2025 compared to the same periods of 2024, primarily due to the benefit of prior year reserve releases and lower losses, partially offset by a decrease in premiums earned driven by the strategic decision for the Allstate brand to stop writing new business and non-renew policies.

Other business lines loss ratio decreased 44.5 points in the third quarter of 2025 compared to the third quarter of 2024, primarily due to lower losses and the benefit of prior year reserve releases.

Other business lines loss ratio decreased 16.9 points in the first nine months of 2025 compared to the first nine months of 2024, primarily due to the benefit of prior year non-catastrophe reserve releases.

Catastrophe losses decreased $1.15 billion to $558 million in the third quarter of 2025 compared to the third quarter of 2024, primarily due to fewer and less severe events as well as the absence of any hurricanes and tropical storms.

Catastrophe losses increased $196 million to $4.75 billion in the first nine months of 2025 compared to the first nine months of 2024.

We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event

Third Quarter 2025 Form 10-Q 55

Segment Results Allstate Protection

threshold of average claims in a specific area, occurring within a certain amount of time following the event.

Other personal lines loss ratio decreased 27.3 points in the first quarter of 2026 compared to the same period of 2025, primarily due to the benefit of prior year reserve releases, excluding catastrophes, lower catastrophe losses and increased premiums earned.

Commercial lines loss ratio decreased 2.0 points in the first quarter of 2026, compared to the same period of 2025, primarily due to lower losses, partially offset by a decrease in premiums earned.

Other business lines loss ratio decreased 13.8 points in the first quarter of 2026, compared to the same period of 2025, primarily due to lower catastrophe losses.

Catastrophe losses decreased $962 million to $1.24 billion in the first quarter of 2026 compared to the first quarter of 2025.

Results in the first quarter of 2025 included $1.07 billion of losses related to the California wildfire events.

We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party

policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event.

Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.

4 unchanged sentences

The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process.

Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting

their ability to inspect losses, determining whether losses are covered by our homeowners policy (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.

Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting their ability to inspect losses, determining whether losses are covered by our homeowners policy (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period.

In these situations, we may need to adapt our practices to accommodate these circumstances in order to determine a best estimate of our losses from a catastrophe.

Over time, we have limited our aggregate insurance exposure to catastrophe losses in certain regions of the country that are subject to high levels of natural catastrophes by managing coverage, number of policies in force, utilizing reinsurance and participating in various state facilities.

First Quarter 2026 Form 10-Q 47

Segment Results Allstate Protection

Catastrophe losses by the type of event

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

($ in millions) Number of events 2025 Number of events 2024 Number of events 2025 Number of events 2024

Hurricanes/tropical storms — $ — 5 $ 953 — $ — 5 $ 953

Tornadoes — — — — — — 1 57

Three months ended March 31,

($ in millions) Number of events 2026 Number of events 2025

Wind/hail 22 $ 994 14 $ 1,209

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Prior year reserve reestimates (1)

(19) (14) 31 (314)

Prior year aggregate reinsurance recoveries

Current year aggregate reinsurance recoveries

Prior quarter reserve reestimates (64) 70 — —

Total catastrophe losses 24 $ 1,240 16 $ 2,202 (2)

3 unchanged sentences

The current catastrophe reinsurance program supports our risk and return framework which incorporates robust economic capital modeling and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires.

As of September 30, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.1 billion, net of reinsurance.

As of December 31, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils was approximately $3.1 billion, net of reinsurance.

We continually review our aggregate risk appetite and the cost and availability of reinsurance to optimize the risk and return profile of this exposure.

The total cost of our property catastrophe reinsurance programs, excluding reinstatement

premiums, during the third quarter and first nine months of 2025 was $352 million and $914 million, respectively, compared to $298 million and $880 million in the third quarter and first nine months of 2024.

Similar to our 2025 program, our 2026 program includes coverage for losses to personal lines property, personal lines automobile, commercial lines property or commercial lines automobile arising out of multiple perils, in addition to hurricanes, earthquakes and wildfires.

The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the first quarter of 2026 was $308 million, compared to $257 million in the first quarter of 2025.

Catastrophe placement premiums reduce net written and earned premium with approximately 83% of the reduction related to homeowners premium.

Prior year reserve reestimates Reserve reestimates, including catastrophes, decreased reserves by $570 million and $1.20 billion in the third quarter and first nine months of 2025, respectively.

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

Current Reinsurance Programs

Nationwide Excess Catastrophe Reinsurance Program (1)

Reinsures multi-line catastrophes in every state except Florida, where coverage is only provided for personal lines automobile unless otherwise stated

Canada Catastrophe Excess of

Loss Reinsurance Contract (1)

Reinsures personal lines property and automobile physical damage catastrophe losses in the Canadian provinces of Ontario, Quebec, Alberta, New Brunswick, and Nova Scotia

State-specific Earthquake-related Catastrophe Reinsurance (1)

Kentucky contract reinsures personal lines property losses in the state caused by earthquakes and fire-following earthquakes

Excess & Surplus (E&S) contract reinsures shake damage resulting from the earthquake peril for personal lines property policies underwritten by North Light, our E&S lines carrier, in California

Florida Excess Catastrophe Reinsurance Program (2)

Reinsures Castle Key Insurance Company (“CKIC”), Castle Key Indemnity Company (“CKI”) and affiliated companies personal lines property excess catastrophe losses in Florida

National General Lender Services Standalone Program (2)

Reinsures the National General Lender Services portfolio, which includes property and automobile products

National General Flood Excess of Loss Reinsurance Contract (2)

Reinsures the National General Flood portfolio, which includes business classified as Private Flood Insurance policies providing stand-alone flood coverage

(1) Programs or contracts updated in the first quarter of 2026.

(2) Updates to programs or contracts will be completed in the second quarter of 2026.

The Nationwide Excess Catastrophe Reinsurance Program (the “Nationwide Program”) reinsures personal lines property and automobile losses arising out of multiple perils including, but not limited to, hurricane, windstorm, hail, tornado, earthquake, fires following earthquakes and wildfires in all states, excluding personal lines property in the state of Florida.

It includes coverage for commercial lines property and automobile (physical damage only) in all states,

excluding commercial lines property in the state of Florida.

The Nationwide Program includes coverage on both a per occurrence and aggregate basis through reinsurance agreements placed with traditional reinsurers and in the Insurance-Linked Securities (“ILS”) markets utilizing catastrophe bonds.

Nationwide Per Occurrence provides per occurrence coverage for events up to $11.50 billion of loss less a $1.00 billion retention and is subject to the

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Allstate Protection Segment Results

percentage of reinsurance placed in each of its agreements.

Eligible losses inure to the benefit of the Aggregate covers.

• Contracts between $1.00 billion and $4.75 billion:

– Provide $3.75 billion of multi-year coverage with traditional reinsurers subject to a $1.00 billion retention with one automatic reinstatement of limits requiring additional premium due.

• Contracts between $4.75 billion and $6.75 billion:

– Provide $1.05 billion of coverage placed with traditional reinsurers, with one automatic reinstatement of limits with additional premium due

– $950 million of catastrophe bond coverage capacity that is not eligible for reinstatement of limits

• Contracts between $6.75 billion and $11.50 billion:

– Provide $4.75 billion of coverage with $2.50 billion placed with traditional reinsurers with no reinstatement of limits and $2.25 billion placed as catastrophe bonds that are not eligible for reinstatement of limits

Nationwide Aggregate Contract is a contract placed in the ILS market and provides $150 million of placed limits for total losses between $4.78 billion and $5.28 billion, applicable to multi-peril losses above $50 million per event, excluding Florida.

Aggregate Excess Catastrophe Reinsurance Contract is placed in the traditional market and provides $1.00 billion of placed limits in excess of an $8.50 billion retention for U.S.

property and auto lines catastrophe events, including the state of Florida.

Canada Catastrophe Excess of Loss Reinsurance Contract is placed in the traditional market and provides CAD 577 million of placed limits, subject to a CAD 100 million retention, with one reinstatement of limits.

Kentucky Earthquake Excess Catastrophe Reinsurance Contract is a three-year term contract placed in the traditional market and provides $28 million of placed limits, subject to a $2 million retention with one reinstatement of limits.

Prior year reserve reestimates Reserve reestimates, including catastrophes, decreased reserves by $1.00 billion in the first quarter of 2026.

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 of 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.

For a more detailed discussion on reinsurance and reserve reestimates, see Note 8 of the condensed consolidated financial statements.

Prior year reserve reestimates

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

Prior year reserve

reestimates (1)

combined ratio (2)

Three months ended March 31,

Prior year reserve

10 unchanged sentences

(2) Ratios are calculated using Allstate Protection premiums earned.

Expense ratio increased 0.3 points and increased 0.2 points in the third quarter and first nine months of 2025, respectively, compared to the same periods of 2024, primarily due to an increase in advertising costs, higher expenses for lender-placed business and lower fees on involuntary auto policies included in other revenue, partially offset by higher earned premium growth relative to costs.

First Quarter 2026 Form 10-Q 49

Segment Results Allstate Protection

Expense ratio decreased 0.1 point in the first quarter of 2026, compared to the first quarter of 2025.

Impact of specific costs and expenses on the expense ratio

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

($ in millions, except ratios) 2025 2024 Change 2025 2024 Change

Three months ended March 31,

($ in millions, except ratios) 2026 2025 Change

Amortization of DAC $ 1,821 $ 1,732 $ 89

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Other costs and expenses, net of other revenue

5.3 4.8 0.5 5.1 5.1 —

Subtotal 21.1 21.0 0.1

2 unchanged sentences

Total expense ratio 21.3 21.4 (0.1)

Third Quarter 2025 Form 10-Q 57

Segment Results Run-off Property-Liability

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Run-off Property-Liability Segment Results

Run-off Property-Liability Segment

Underwriting results

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Claims and claims expense $ — $ (3)

Asbestos claims

$ (62) $ (19) $ (62) $ (19)

Environmental claims

(27) (10) (27) (10)

Other run-off lines (57) (30) (62) (36)

Total claims and claims expense

$ (146) $ (59) $ (151) $ (65)

Operating costs and expenses (1) (1)

Underwriting loss

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

Annual reserve review In the third quarter of 2025 and 2024, we performed our annual reserve review using established industry and actuarial best practices.

The annual review resulted in reserve reestimates that increased reserves by $146 million and $58 million in 2025 and 2024, respectively.

The reserve reestimates are included as part of claims and claims expense.

The reserve reestimates in 2025 primarily related to new reported information for asbestos claims, new reported claims for environmental and other mass tort claims and increased projections for claims expenses.

The reserve reestimates in 2024 primarily related to new reported information for asbestos related

claims and adverse developments within the other run-off lines.

We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment.

However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable.

Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance

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

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

Asbestos claims

13 unchanged sentences

Net reserves $ 1,413 $ 1,432

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Run-off Property-Liability Segment Results

Reserves by type of exposure before and after the effects of reinsurance

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

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

Direct excess commercial insurance

18 unchanged sentences

Net reserves $ 1,413 $ 1,432

First Quarter 2026 Form 10-Q 51

Segment Results Run-off Property-Liability

Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Case IBNR Case IBNR

8 unchanged sentences

Ceded 74 26 72 28

(1) Approximately 65% of gross case reserves as of September 30, 2025 and December 31, 2024 are subject to settlement agreements that define and limit our obligations.

(2) Approximately 72% of ceded case reserves as of September 30, 2025 and December 31, 2024 are subject to settlement agreements that define and limit our obligations.

(1) Approximately 65% and 66% of gross case reserves as of March 31, 2026 and December 31, 2025, respectively, are subject to settlement agreements that define and limit our obligations.

(2) Approximately 72% and 73% of ceded case reserves as of March 31, 2026 and December 31, 2025, respectively, are subject to settlement agreements that define and limit our obligations.

Gross payments from case reserves by type of exposure

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Direct excess commercial insurance

$ 14 $ 19 $ 74 $ 51

(6) (7) (27) (20)

Assumed reinsurance coverage

Ceded (5) 1 (6) (1)

Direct primary commercial insurance

Ceded (1) (1) (2) (2)

(1) In the third quarter and first nine months of 2025, 81% and 90% of payments related to settlement agreements, respectively, compared to 94% and 89% in the third quarter and first nine months of 2024, respectively.

(2) In the third quarter and first nine months of 2025, 84% and 91% of payments related to settlement agreements, respectively, compared to 98% and 95% in the third quarter and first nine months of 2024, respectively.

Third Quarter 2025 Form 10-Q 59

Segment Results Run-off Property-Liability

Total net reserves as of September 30, 2025, included $773 million or 52% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.

Total gross payments were $37 million and $115 million for the third quarter and first nine months of 2025, respectively, compared to $26 million and $88 million for the third quarter and first nine months of 2024, respectively.

(1) In the first quarter of 2026 and 2025, 89% and 90% of payments related to settlement agreements, respectively.

(2) In the first quarter of 2026 and 2025, 94% and 93% of payments related to settlement agreements, respectively.

Total net reserves as of March 31, 2026, included $746 million or 53% of estimated IBNR reserves compared to $761 million or 53% of estimated IBNR reserves as of December 31, 2025.

Total gross payments were $27 million for the first quarter of 2026 compared to $33 million for the first quarter of 2025.

Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos-related losses, where the scope of coverages has been agreed upon.

The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds.

Reinsurance collections were $9 million and $25 million for the third quarter and first nine months of 2025, respectively, compared to $5 million and $31 million for the third quarter and first nine months of 2024, respectively.

Reinsurance collections were $13 million for the first quarter of 2026 compared to $6 million for the first quarter of 2025.

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2 unchanged sentences

Summarized financial information

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

2025 2024 2025 2024

($ in millions) Three months ended March 31,

Premiums written $ 727 $ 657

2 unchanged sentences

Intersegment insurance premiums and service fees (1)

33 49 106 123

Net investment income 23 24

19 unchanged sentences

Identity Protection 2,752 2,648

Policies in force as of September 30 (in thousands) 170,945 163,729

Policies in force as of March 31 (in thousands) 172,969 168,708

(1) Primarily related to Arity and Roadside and are eliminated in our condensed consolidated financial statements.

Premiums written increased 10.5% or $71 million in the third quarter of 2025 and increased 8.0% or $158 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to international growth at Protection Plans.

Adjusted net income decreased 20.7% or $12 million in the third quarter of 2025 and decreased 3.6% or $6 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to higher expenses at Arity and increased claims at Protection Plans, partially offset by premium growth at Protection Plans.

PIF increased 4.4% or 7 million as of September 30, 2025 compared to September 30, 2024 due to growth at Protection Plans.

Other revenue increased 12.7% or $14 million in the third quarter of 2025 and increased 23.9% or $70 million in the first nine months of 2025 compared to

the same periods of 2024, primarily due to higher lead generation revenue at Arity.

Intersegment premiums and service fees decreased 32.7% or $16 million in the third quarter of 2025 and decreased 13.8% or $17 million in the first nine months of 2025 compared to the same periods of 2024, primarily driven by Arity and Roadside.

Claims and claims expense increased 16.3% or $27 million in the third quarter of 2025 and increased 8.9% or $43 million in the first nine months of 2025 compared to the same periods of 2024, primarily driven by growth at Protection Plans.

Amortization of DAC increased 10.9% or $33 million in the third quarter of 2025 and increased 10.6% or $94 million in the first nine months of 2025 compared to the same periods of 2024, driven by growth at Protection Plans.

Third Quarter 2025 Form 10-Q 61

Segment Results Protection Services

Operating costs and expenses increased 10.7% or $30 million in the third quarter of 2025 and increased 19.6% or $149 million in the first nine months of 2025 compared to the same periods of 2024, primarily due to expenses related to growth at Protection Plans and Arity.

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Premiums written increased 10.7% or $70 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to continued growth at Protection Plans.

Adjusted net income decreased 14.5% or $8 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to restructuring charges at Arity and higher claim costs at Protection Plans.

PIF increased 2.5% or 4 million as of March 31, 2026 compared to March 31, 2025 due to growth at Protection Plans.

Other revenue decreased 8.6% or $11 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to lower lead generation revenue at Arity.

Intersegment premiums and service fees decreased 16.2% or $6 million in the first quarter of

2026 compared to the first quarter of 2025, primarily driven by Arity and Roadside.

Claims and claims expense increased 23.6% or $38 million in the first quarter of 2026 compared to the first quarter of 2025, primarily driven by increased loss costs at Protection Plans.

Amortization of DAC increased 9.4% or $30 million in the first quarter of 2026 compared to the first quarter of 2025, driven by growth at Protection Plans.

Operating costs and expenses remained stable in the first quarter of 2026 compared to the first quarter of 2025.

First Quarter 2026 Form 10-Q 53

Portfolio composition and strategy (1)

September 30, 2025

March 31, 2026

($ in millions) Property-Liability Protection Services

16 unchanged sentences

(2) Fixed income securities are carried at fair value.

Amortized cost, net for these securities was $51.19 billion, $1.81 billion, $3.73 billion and $56.73 billion for Property-Liability, Protection Services, Corporate and all other, and in total, respectively.

Amortized cost, net for these securities was $49.88 billion, $1.77 billion, $7.69 billion and $59.34 billion for Allstate Protection and Run-off Property-Liability, Protection Services, Corporate and all other, and in total, respectively.

(3) Equity securities are carried at fair value.

The fair value of equity securities held as of September 30, 2025, was $395 million in excess of cost.

These net gains were primarily concentrated in the technology, equity index funds and banking sectors.

Equity securities include $1.34 billion of funds with underlying investments in fixed income and short-term securities as of September 30, 2025.

The fair value of equity securities held as of March 31, 2026, was $77 million in excess of cost.

Equity securities include $2.21 billion of funds with underlying investments in fixed income and short-term securities as of March 31, 2026.

(4) Short-term investments are carried at fair value.

Investments totaled $82.33 billion as of September 30, 2025, increasing from $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows.

Investments totaled $85.16 billion as of March 31, 2026, increasing from $83.24 billion as of December 31, 2025, primarily due to operating cash flows.

Portfolio composition by investment strategy We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects.

1 unchanged sentence

Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.

Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement

market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate with a majority being limited partnerships.

Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate with a majority being limited partnerships.

These investments include investee level expenses, reflecting asset level operating expenses on directly held real estate and other consolidated investments.

Macroeconomic impacts We continually monitor the macroeconomic environment through our integrated Enterprise Risk and Return Management framework.

In the third quarter of 2025, we increased the allocation of enterprise economic capital to the investment portfolio in response to evolving market conditions.

Actions included lengthening the fixed income portfolio duration and increasing exposure to public equity securities and high yield bonds.

Third Quarter 2025 Form 10-Q 63

Macroeconomic impacts Strategic actions continued to focus on optimizing portfolio yield, risk and return amid evolving market and macroeconomic conditions.

During the first quarter of 2026, the fixed income portfolio duration was extended to 5.7 years, inclusive of interest rate derivatives and security‑specific call features, compared to 5.1 years as of December 31, 2025, and equity securities increased by $2.03 billion.

Private credit exposure We define private credit as investments in asset-based financing arrangements, corporate credit excluding SEC Rule 144a and similar exposures, and certain consumer lending exposures.

Our private credit investments are primarily originated by third-party asset managers with global credit platforms and are generally secured by collateral, with 89% rated investment grade.

Mortgage loans primarily consist of residential loans, which are secured by collateral and have recourse to the borrower.

The following table reflects investments as of March 31, 2026 in private credit by investment type.

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Private credit investments

As of March 31, 2026

($ in millions) Fixed income securities (1)

Bank loans (1)

Mortgage loans

Asset-based financing

$ 88 $ 242 $ 313 $ 643

Corporate credit

117 183 — 300

Total carrying value

$ 205 $ 425 $ 313 $ 943

(1) 87% of fixed income securities and 90% of bank loans were rated investment grade.

Given this composition, the portfolio is well positioned in the current market environment, with risk characteristics that differ from areas of the private credit market experiencing heightened volatility.

Portfolio composition by investment strategy

September 30, 2025

March 31, 2026

($ in millions) Market-

10 unchanged sentences

Fixed income securities $ (279) $ 1 $ (278)

Short-term investments (2) — (2)

Other investments

3 unchanged sentences

Fair value as of

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

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

government and agencies $ 12,042 $ 18,133

11 unchanged sentences

As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the portfolio includes certain securities that have not yet been designated by the SVO as of each balance sheet date and the categorization of these securities is based on the expected ratings indicated by internal analysis .

As of September 30, 2025, 91.5% of the consolidated fixed income securities portfolio was

rated investment grade.

As of March 31, 2026, 92.2% of the consolidated fixed income securities portfolio was rated investment grade.

Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds.

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

Our initial investment decisions and ongoing monitoring procedures for fixed income securities are based on a due diligence process which includes, but is not limited to, an assessment of the credit quality, sector, structure and liquidity risks of each issuer.

Our initial investment decisions and ongoing monitoring procedures for fixed income securities are based on a due diligence process which includes, but is not limited to, an assessment of

First Quarter 2026 Form 10-Q 55

the credit quality, sector, structure and liquidity risks of each issuer.

Fixed income portfolio monitoring is a comprehensive process to identify and evaluate each fixed income security that may require a credit loss allowance.

The process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds.

The process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below

internally established thresholds.

For further detail on our fixed income portfolio monitoring process, see Note 4 of the condensed consolidated financial statements.

The following table presents total fixed income securities by the applicable NAIC designation and comparable S&P rating.

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Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating

September 30, 2025

March 31, 2026

NAIC 1 NAIC 2 NAIC 3

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MBS includes residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”).

RMBS is subject to interest rate risk, but unlike other fixed income securities, is additionally subject to prepayment risk from the underlying residential mortgage loans.

RMBS is subject to interest rate risk, but unlike other fixed income securities, is additionally subject to prepayment risk from the

underlying residential mortgage loans.

RMBS primarily consists of a U.S.

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CMBS investments are primarily traditional conduit transactions collateralized by commercial mortgage loans, broadly diversified across property types and geographical area.

Equity securities of $5.34 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and REITs.

Exchange traded and mutual funds that have fixed income and short-term securities as their underlying investments total $1.34 billion as of September 30, 2025.

Sector exposure within exchange traded and mutual funds align with the respective tracked indices.

Equity securities of $10.43 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REITs”) equity investments.

Exchange traded and mutual funds that have fixed income and short-term securities as their underlying investments total $2.21 billion as of March 31, 2026.

Mortgage loans of $868 million comprise loans secured by first mortgages on developed commercial real estate of $603 million and residential mortgage loans of $265 million.

Key considerations used to manage our exposure include property type and geographic diversification.

For further detail on our mortgage loan portfolio, see Note 5 of the condensed consolidated financial statements.

Limited partnership interests include $7.52 billion of interests in private equity funds, $1.47 billion of interests in real estate funds and $232 million of interests in other funds as of September 30, 2025.

We have commitments to invest additional amounts in limited partnership interests totaling $3.26 billion as of September 30, 2025.

Other investments include $383 million of bank loans, net and $621 million of direct investments in real estate as of September 30, 2025.

Third Quarter 2025 Form 10-Q 65

For further detail on our

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mortgage loan portfolio, see Note 4 of the condensed consolidated financial statements.

Limited partnership interests include $7.23 billion of interests in private equity funds, $1.54 billion of interests in real estate funds and $183 million of interests in other funds as of March 31, 2026.

commitments to invest additional amounts in limited partnership interests totaling $3.20 billion as of March 31, 2026.

Other investments include $622 million of direct investments in real estate and $520 million of bank loans, net as of March 31, 2026.

Unrealized net capital gains (losses)

September 30, December 31,

March 31, December 31,

($ in millions) 2026 2025

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Derivatives (2) (2)

Investments classified as held for sale — (110)

Unrealized net capital gains and losses, pre-tax $ (282) $ 382

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Gross unrealized Fair

September 30, 2025

March 31, 2026

$ 3,991 $ 42 $ (30) $ 4,003

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Total fixed income securities $ 59,338 $ 400 $ (678) $ 59,060

First Quarter 2026 Form 10-Q 57

Gross unrealized gains (losses) on fixed income securities by type and sector

($ in millions) Amortized

cost, net Gross unrealized Fair

December 31, 2025

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ABS 1,348 8 (4) 1,352

2,086 41 (1) 2,126

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

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In general, gross unrealized losses are related to an increase in market yields, which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase.

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Equity securities by sector

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

($ in millions) Cost Over (under) cost Fair

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Total equity securities $ 10,354 $ 77 $ 10,431 $ 8,026 $ 372 $ 8,398

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Net investment income

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

Three months ended March 31,

($ in millions) 2026 2025

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Investment income, before expense $ 1,010 $ 925

Net investment income increased 21.2% or $166 million in the third quarter of 2025 and increased 13.2% or $298 million in the first nine months of 2025 compared to the same periods of 2024.

Net investment income increase included higher market-based income resulting from higher average investment balances and elevated fixed income yields.

Performance-based investment results reflected broad-based valuation gains across private equity and real estate holdings.

Third Quarter 2025 Form 10-Q 67

Net investment income increased 9.8% or $84 million in the first quarter of 2026, primarily related to higher market-based income resulting from higher average investment balances and improved performance-based investment results.

Performance-based investment income

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

Three months ended March 31,

($ in millions) 2026 2025

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Investee level expenses (1)

(13) (12) (34) (36)

Total performance-based income $ 207 $ 196

(1) Investee level expenses include asset level operating expenses on directly held real estate and other consolidated investments reported in investment expense.

Performance-based investment income increased 58.7% or $84 million in the third quarter of 2025 compared to the same period of 2024, related to higher private equity valuation increases and real estate investment results.

Performance-based investment income increased 11.3% or $51 million in the first nine months of 2025 compared to the same period of 2024, primarily due to higher real estate investment results, partially offset by lower private equity valuation increases.

Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market

performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales.

Performance-based investment income increased 5.6% or $11 million in the first quarter of 2026 compared to the same period of 2025 primarily due to private equity valuation increases and higher real estate investment results.

Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset

The Company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements.

As a result, performance-based income in the third quarter of 2025 is primarily comprised of operating and market performance and results of our investments for the three months ended June 30, 2025, and may not reflect all economic conditions since the U.S.’s imposition of tariffs on goods imported to the U.S.

As a result, performance-based income in the first quarter of 2026 is primarily comprised of operating and market performance and results of our investments for the three months ended December 31, 2025, and may not reflect all economic conditions, including the effects of recent and ongoing trade policy developments.

First Quarter 2026 Form 10-Q 59

Components of net gains (losses) on investments and derivatives and the related tax effect

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

Three months ended March 31,

($ in millions) 2026 2025

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Credit losses (1)

(23) (12) (103) (143)

Valuation change of equity investments - appreciation (decline):

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Net gains (losses) on investments and derivatives, pre-tax (405) (349)

Income tax (expense) benefit (56) (54) 49 4

Income tax benefit 85 73

Net gains (losses) on investments and derivatives, after-tax $ (320) $ (276)

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(1) 2025 includes losses recorded for variable interests in Reciprocal Exchanges.

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

See Note 7 for further details.

(2) Relates to limited partnerships where the underlying assets are predominately public equity securities.

Net gains on investments and derivatives in the third quarter of 2025 primarily related to valuation increases on equity investments and gains on sales of fixed income securities.

Net losses in the first nine months of 2025 primarily related to losses on sales of fixed income securities, credit losses primarily related to variable interests in Reciprocal Exchanges and certain real estate-related investments and losses on valuation change and settlements of derivatives, partially offset by valuation increases on equity investments.

Net gains on sales in the third quarter of 2025 related to sales of fixed income securities in connection with ongoing portfolio management and repositioning of the portfolio into intermediate-duration fixed income securities.

Net losses on sales in the first nine months of 2025 related to sales of fixed income securities in connection with risk reduction and repositioning in the second and third quarters and ongoing portfolio management.

Net gains on valuation change and settlements of derivatives of $6 million in the third quarter of 2025 primarily related to gains on foreign currency contracts

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used to manage foreign currency and interest rate futures used to manage duration.

Net losses of $78 million in the first nine months of 2025 primarily related to losses on foreign currency contracts used to

manage foreign currency, credit default contracts due to tightening credit spreads, equity futures used to manage equity exposure and interest rate futures used to manage duration.

Net losses on investments and derivatives in the first quarter of 2026 primarily related to valuation losses on equity investments.

Net gains (losses) on performance-based investments and derivatives

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

Three months ended March 31,

($ in millions) 2026 2025

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Total performance-based $ (15) $ (28)

Net gains on performance-based investments and derivatives in the third quarter of 2025 primarily related to valuation gains on equity investments, partially offset by losses on sales.

Net gains on performance-based investments and derivatives in the first nine months of 2025 primarily related to valuation gains on equity investments, partially offset by decreased valuation change and settlements of derivatives from losses on foreign currency contracts used to manage foreign currency risk and losses on sales.

Third Quarter 2025 Form 10-Q 69

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Capital Resources and Liquidity

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Capital resources

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

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

Preferred stock, common stock, treasury stock, retained income and other shareholders’ equity items $ 31,899 $ 30,355

Accumulated other comprehensive income (loss) 298 (889)

Accumulated other comprehensive (loss) income (292) 255

Total Allstate shareholders’ equity 31,607 30,610

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Ratio of debt to capital resources 19.2 19.7

(1) Net of debt issuance costs of $52 million and $56 million as of September 30, 2025 and December 31, 2024, respectively.

Allstate shareholders’ equity increased in the first nine months of 2025, primarily due to net income and an increase in unrealized net capital gains on investments in 2025, partially offset by common share repurchases and dividends to shareholders.

In the nine months ended September 30, 2025, we paid dividends of $773 million and $88 million related to our common and preferred shares, respectively.

(1) Net of debt issuance costs of $50 million and $51 million as of March 31, 2026 and December 31, 2025, respectively.

Allstate shareholders’ equity increased in the first three months of 2026, primarily due to net income, partially offset by common share repurchases, unrealized net capital losses and dividends to shareholders.

In the three months ended March 31, 2026, we paid dividends of $261 million and $29 million related to our common and preferred shares, respectively.

Debt maturities We have $550 million of debt that is scheduled to mature in December 2026.

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Total long-term debt principal $ 6,991

Common share repurchases On February 26, 2025, the Board of Directors authorized a new $1.50 billion common share repurchase program that must be completed by September 30, 2026.

As of September 30, 2025, there was $695 million remaining in the $1.50 billion common share repurchase program.

During the first nine months of 2025, we repurchased 4.0 million common shares, or 1.5% of total common shares outstanding at December 31, 2024, for $805 million.

Common shareholder dividends On January 2, 2025, April 1, 2025 and July 1, 2025, we paid a common shareholder dividend of $0.92, $1.00 and $1.00, respectively.

On July 15, 2025, we declared a common shareholder dividend of $1.00 payable on October 1, 2025.

Common share repurchases In February 2026, the $1.50 billion common share repurchase program was completed.

On February 4, 2026, the Board of Directors authorized a new $4.00 billion common share repurchase program through February 2028, which commenced after the $1.50 billion program was completed.

During the first three months of 2026, we repurchased 3 million common shares, or 1.2% of total common shares outstanding at December 31, 2025, for $620 million.

Common shareholder dividends On January 2, 2026, we paid a common shareholder dividend of $1.00.

On February 4, 2026, we declared a common shareholder dividend of $1.08 payable on April 1, 2026.

Financial ratings and strength Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage.

The preferred stock and subordinated debentures are viewed as having a

common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies.

The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies

and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies.

These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock.

In May 2025, Moody’s affirmed The Allstate Corporation’s (the “Corporation”) senior debt and short-term issuer ratings of A3 and P-2, respectively, and Allstate Insurance Company’s (“AIC”) insurance financial strength rating of Aa3.

The outlook for the ratings changed from negative to stable.

In May 2025, S&P affirmed the Corporation's senior debt and short-term issuer ratings of BBB+ and A-2, respectively, and AIC's insurance financial strength rating of A+.

The outlook for the ratings is stable.

In August 2025, A.M.

Best affirmed the Corporation’s senior debt and short-term issuer ratings of a- and AMB-1, respectively, and AIC’s insurance financial strength rating of A+.

The outlook for the ratings is stable.

There have been no changes to any of our ratings from A.M.

Best, S&P or Moody’s since December 31, 2025.

Liquidity sources and uses We actively manage our financial position and liquidity levels in light of changing market, economic and business conditions.

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We believe we have sufficient liquidity to meet these needs.

As of September 30, 2025, we held $27.85 billion of cash, U.S.

As of March 31, 2026, we held $27.09 billion of cash, U.S.

government and agencies fixed income securities, public equity securities and short-term investments, which we would expect to be able to liquidate within one week.

Additionally, we have existing intercompany agreements in place that facilitate liquidity management across the Company to enhance flexibility.

The Corporation is party to an Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) with certain subsidiaries, which includes, but is not limited to AIC.

The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general

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Capital Resources and Liquidity

corporate purposes.

The Corporation is party to an Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) with certain subsidiaries, which includes, but is not limited to Allstate Insurance Company (“AIC”).

The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general corporate purposes.

The Liquidity Agreement does not establish a commitment to advance funds on the part of any party.

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The amount of intercompany loans available to the Corporation’s subsidiaries is at the discretion of the Corporation.

The maximum amount of loans the Corporation will have outstanding to all its eligible subsidiaries at any given point in time is limited to $1.00 billion.

The maximum amount of

First Quarter 2026 Form 10-Q 61

Capital Resources and Liquidity

loans the Corporation will have outstanding to all its eligible subsidiaries at any given point in time is limited to $1.00 billion.

The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings.

Parent company capital capacity At the parent holding company level, we have deployable assets totaling $5.54 billion as of September 30, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.

The proceeds from the EVB and group health dispositions increased deployable assets at the parent holding company level.

Parent company capital capacity At the parent holding company level, we have deployable assets comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.

The earnings capacity of the operating subsidiaries is the primary source of capital generation for the Corporation.

Based on the greater of 2024 statutory net income or 10% of actual December 31, 2024 statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2026, is estimated to be $3.95 billion, less dividends paid during the preceding twelve months measured at that point in time.

In the first nine months of 2025, $750 million of dividends have been paid.

Based on the greater of 2025 statutory net income or 10% of actual December 31, 2025 statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2027, is $7.98 billion, less dividends paid during the preceding twelve months measured at that point in time.

During the first three months of 2026, $3.00 billion of dividends have been paid.

Dividends may not be paid or declared on our common stock and shares of common stock may not be repurchased unless the full dividends for the latest completed dividend period on our preferred stock have been declared and paid or provided for.

The terms of our outstanding subordinated debentures also prohibit us from declaring or paying any dividends or distributions on our common or preferred stock or redeeming, purchasing, acquiring, or making liquidation payments on our common stock or preferred stock if we have elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions.

In the first nine months of 2025, we did not defer interest payments on the subordinated debentures.

In the first three months of 2026, we did not defer interest payments on the subordinated debentures.

Additional resources to support liquidity are as follows:

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This facility has a financial covenant requiring that we not exceed a 37.5% debt to capitalization ratio as defined in the agreement.

This ratio was 17.9% as of September 30, 2025.

This ratio was 14.6% as of March 31, 2026.

Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of our senior unsecured, unguaranteed long-term debt.

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• To cover short-term cash needs, the Corporation has access to a commercial paper facility with a borrowing capacity limited to any undrawn credit facility balance up to $750 million.

As of September 30, 2025, there were no balances outstanding for the credit facility or the commercial paper facility, and therefore the remaining borrowing capacity was $750 million.

As of March 31, 2026, there were no balances outstanding for the credit facility or the commercial paper facility, and therefore the remaining borrowing capacity was $750 million.

• The Corporation has access to a universal shelf registration statement with the Securities and Exchange Commission that was filed on April 30, 2024 and expires in 2027.

We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 638 million shares of treasury stock as of September 30, 2025), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.

We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 642 million shares of treasury stock as of March 31, 2026), preferred stock, depositary shares, warrants, stock purchase contracts and stock purchase units.

The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.

Third Quarter 2025 Form 10-Q 71

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Forward-Looking Statements

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Insurance and Financial Services (1) actual claim costs exceeding current reserves;

(2) unexpected increases in claim frequency or severity;

(2) increases in claim frequency or severity;

(3) catastrophes and severe weather events;

1 unchanged sentence

(5) price competition and changes in regulation and underwriting standards;

(6) regulatory limitations on rate increases and requirements to underwrite business and participate in loss sharing arrangements;

(7) market risk and declines in credit quality of our investment portfolios;

(8) economic and capital market conditions affecting investments;

(6) regulatory limitations on rates, profits, new products or the use of advanced technologies, non-traditional data sources or large language models and requirements to underwrite business and participate in loss sharing arrangements;

(7) market risk, declines in credit quality and economic and capital market conditions affecting investments;

(8) subjective determination of fair value and amount of credit losses for investments;

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(13) changing consumer preferences;

(15) new or changing technologies impacting the business;

(16) inability to successfully deploy new technologies;

(14) new or changing technologies and new business model impacts affecting the auto industry;

(15) inability to successfully deploy advanced technologies in a cost-effective, competitive, ethical and compliant manner;

(16) Transformative Growth strategy;

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(24) reliance on vendors for products, services or protection of data and information;

(25) the failure in cyber or other information security controls;

(26) inability to restore business operations following a significant operational event;

(27) inability to attract, develop and retain talent;

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(29) restrictions on liquidity or availability of credit on acceptable terms;

(29) a large-scale pandemic, the occurrence of terrorism, military actions or political and social unrest or other disruptive or destabilizing events;

(30) the failure in cyber or other information security controls;

(31) failure of business continuity following a disaster or other event;

(30) widespread disruptive or destabilizing events;

(31) changing climate and weather conditions;

(33) evolving environmental, social and governance standards and expectations;

(34) evolving privacy and data security regulations and increased focus on enforcement;

(35) failure to manage risk and to timely detect and mitigate a cybersecurity event;

(32) practices relating to environmental and social matters;

(33) evolving privacy and data security regulation and increased focus on enforcement;

(34) restrictive regulations and uncertainty around the interpretation and implementation of regulations in the U.S.

and internationally;

(37) regulatory reforms and enforcement of existing regulations;

(35) regulatory and federal agency reforms;

(36) losses from legal and regulatory actions;

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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 2. Management’s Discussion and Analysis