ALLSTATE CORP 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview The following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the condensed consolidated financial statements and related notes thereto found under Part I. Item 1. contained herein, and with the discussion, analysis, consolidated financial statements and notes thereto in Part I. Item 1. and Part II. Item 7. and Item 8. 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. Measuring segment profit or loss The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services and Corporate segments. We use these measures in our evaluation of results of operations to analyze profitability. 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: • Net gains and losses on investments and derivatives • Pension and other postretirement remeasurement gains and losses • Amortization or impairment of purchased intangibles • Gain or loss on disposition • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years • Income tax expense or benefit on reconciling items Macroeconomic impacts 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, 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. If 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 • Increases in building material costs, driving increases in homeowners claim costs • Lack of availability of replacement parts from disruption in global trade broadly impacting all businesses • Fewer auto new issued applications due to lower new and used vehicle sales • Reduced demand in Dealer Services due to lower new vehicle sales • Lower premiums written from reduced U.S. retail sales in Protection Plans • Higher claims costs at Protection Plans • 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. Corporate strategy Our strategy has two components: increase personal property-liability market share and expand protection offerings by leveraging the Allstate brand, customer base and capabilities. 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: • Improving customer value • Expanding customer access • Increasing sophistication and investment in customer acquisition • Deploying new technology ecosystems • Driving organizational transformation We are expanding Protection Services businesses internationally and by leveraging the Allstate brand, customer base and capabilities. Financial Highlights ($ in millions) 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 Property-Liability Operations Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources. We do not allocate Property-Liability investment income, net gains and losses on investments and derivatives, or assets to the Allstate Protection and Run-off Property-Liability segments. Management reviews assets at the Property-Liability 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: • Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates. • Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned. • Combined ratio: the sum of the loss ratio and the expense ratio. We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned: • Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense • Effect of prior year reserve reestimates 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: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment Premium measures and statistics are used to analyze our premium trends and are calculated as follows: • PIF : policy counts are based on items rather than customers. 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. • New issued applications : item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. • Average premium-gross written (“average premium”): gross premiums written divided by issued item count. 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, typically six months for an auto policy and twelve months for a homeowners policy. • Implemented rate changes: represents the impact in the locations (U.S. 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. 42 www.allstate.com Property-Liability Operations Underwriting results Three months ended March 31, ($ in millions, except ratios) 2026 2025 Premiums written $ 14,625 $ 14,297 Premiums earned $ 14,802 $ 14,027 Other revenue 544 488 Claims and claims expense (8,992) (10,660) Amortization of DAC (1,821) (1,732) Other costs and expenses (1,835) (1,701) Restructuring and related charges (1) (16) Amortization of purchased intangibles (39) (46) Underwriting income $ 2,658 $ 360 Catastrophe losses Catastrophe losses, excluding reserve reestimates $ 1,228 $ 2,218 Catastrophe reserve reestimates (1) 12 (16) Total catastrophe losses $ 1,240 $ 2,202 Prior year reserve reestimates, excluding catastrophes (1) $ (1,016) $ (235) Prior year reserve reestimates (1) (1,004) (251) GAAP operating ratios Loss ratio 60.7 76.0 Expense ratio (2) 21.3 21.4 Combined ratio 82.0 97.4 Effect of catastrophe losses on combined ratio 8.4 15.7 Effect of prior year reserve reestimates on combined ratio (6.8) (1.8) Effect of catastrophe losses included in prior year reserve reestimates on combined ratio 0.1 (0.1) Effect of restructuring and related charges on combined ratio — 0.1 Effect of amortization of purchased intangibles on combined ratio 0.2 0.3 Effect of Run-off Property-Liability business on combined ratio — — (1) Reserve releases are shown in parentheses. (2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation. First Quarter 2026 Form 10-Q 43 Segment Results Allstate Protection Allstate Protection Segment Underwriting results Three months ended March 31, ($ in millions) 2026 2025 Premiums written $ 14,625 $ 14,297 Premiums earned $ 14,802 $ 14,027 Other revenue 544 488 Claims and claims expense (8,992) (10,657) Amortization of DAC (1,821) (1,732) Other costs and expenses (1,834) (1,700) Restructuring and related charges (1) (16) Amortization of purchased intangibles (39) (46) Underwriting income $ 2,659 $ 364 Catastrophe losses $ 1,240 $ 2,202 Underwriting income increased $2.30 billion in the first quarter of 2026 compared to the first quarter of 2025, due to lower catastrophe losses, the benefit of prior year reserve releases and increased premiums earned, partially offset by higher expenses. Underwriting income (loss) Three months ended March 31, ($ in millions) 2026 2025 Auto $ 1,729 $ 816 Homeowners 685 (451) Other personal lines (1) 157 (65) Commercial lines 21 16 Other business lines (2) 64 41 Answer Financial 3 7 Total $ 2,659 $ 364 (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. Premiums are considered earned and are included in the financial results on a pro-rata basis over the policy period. The portion of premiums written applicable to the unexpired term of the policies is recorded as unearned premiums on our Condensed Consolidated Statements of Financial Position. Premiums written Three months ended March 31, ($ in millions) 2026 2025 Auto $ 9,850 $ 9,848 Homeowners 3,741 3,453 Other personal lines 768 729 Commercial lines 112 94 Other business lines 154 173 Total premiums written $ 14,625 $ 14,297 Premiums earned Three months ended March 31, ($ in millions) 2026 2025 Auto $ 9,547 $ 9,347 Homeowners 4,164 3,657 Other personal lines 820 741 Commercial lines 101 113 Other business lines 170 169 Total premiums earned $ 14,802 $ 14,027 Policies in force As of March 31, (In thousands) 2026 2025 Auto 25,758 25,100 Homeowners 7,739 7,549 Other personal lines 4,902 4,874 Commercial lines 177 189 Total 38,576 37,712 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 • 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 March 31, 2026 2025 Change New issued applications (in thousands) Allstate Protection by channel Exclusive agency 807 748 7.9 % Independent agency 742 686 8.2 Direct 848 757 12.0 Total new issued applications 2,397 2,191 9.4 % Allstate brand average premium $ 832 $ 853 (2.5) % 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 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 March 31, 2026 2025 Change New issued applications (in thousands) Allstate Protection by channel Exclusive agency 241 232 3.9 % Independent agency 36 47 (23.4) Direct 81 41 97.6 Total new issued applications 358 320 11.9 % Allstate brand average premium $ 2,360 $ 2,210 6.8 % 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 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. Frequency and severity changes are used to describe the trends in loss costs. Combined ratios Loss ratio Expense ratio (2) Combined ratio 2026 2025 2026 2025 2026 2025 Three months ended March 31, Auto 60.6 69.3 21.3 22.0 81.9 91.3 Homeowners 61.5 91.8 22.0 20.5 83.5 112.3 Other personal lines (1) 63.9 91.2 17.0 17.6 80.9 108.8 Commercial lines 56.4 58.4 22.8 27.4 79.2 85.8 Other business lines 35.9 49.7 26.5 26.0 62.4 75.7 Total 60.7 76.0 21.3 21.4 82.0 97.4 Impact of amortization of purchased intangibles 0.2 0.3 0.2 0.3 Impact of restructuring and related charges — 0.1 — 0.1 (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. 46 www.allstate.com Allstate Protection Segment Results Loss ratios Loss ratio Effect of catastrophe losses (1) (2) Effect of prior year reserve reestimates Effect of catastrophe losses included in prior year reserve reestimates 2026 2025 2026 2025 2026 2025 2026 2025 Three months ended March 31, Auto 60.6 69.3 0.9 2.2 (8.8) (2.6) — (0.1) Homeowners 61.5 91.8 25.1 49.9 (2.7) (0.2) (0.4) — Other personal lines 63.9 91.2 11.1 16.7 (3.5) 6.2 3.1 (1.0) Commercial lines 56.4 58.4 — 2.7 (16.8) (24.8) 3.0 2.7 Other business lines 35.9 49.7 7.7 24.3 (3.5) (8.9) — — Total 60.7 76.0 8.4 15.7 (6.8) (1.8) 0.1 (0.1) (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 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. We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. Loss estimates are generally based on claim adjuster inspections and the application of historical loss development factors. Our loss estimates are calculated in accordance with the coverage provided by our policies. 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. 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 March 31, ($ in millions) Number of events 2026 Number of events 2025 Wind/hail 22 $ 994 14 $ 1,209 Wildfires — — 2 1,066 Freeze/other events 2 234 — — Prior year reserve reestimates (1) 8 50 Prior year aggregate reinsurance recoveries 4 (66) Current year aggregate reinsurance recoveries — (57) Total catastrophe losses 24 $ 1,240 16 $ 2,202 (2) (1) Includes reinsurance recoveries. (2) Gross losses before reinsurance recoverables and reinstatement premiums were $3.33 billion. Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide shareholders with long-term returns on the risks assumed in our property business, reduce earnings volatility, and provide protection to our customers. 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 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. 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. 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 48 www.allstate.com 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 $163 million of other auto coverages. Approximately 70% of the auto injury reserve releases relate to accident years 2023 and 2024. Approximately 90% of other auto reserve releases relate to physical damage coverage from accident years 2024 and 2025, with 97% of estimated ultimate losses paid as of March 31, 2026. For the three months ended March 31, 2026, the reserve releases from homeowners, other personal lines and commercial lines relate to better than expected severity developments in homeowners and consumer household property damage and injury coverages. For a more detailed discussion on reinsurance and reserve reestimates, see Note 8 of the condensed consolidated financial statements. Prior year reserve reestimates Three months ended March 31, Prior year reserve reestimates (1) Effect on combined ratio (2) ($ in millions, except ratios) 2026 2025 2026 2025 Auto $ (840) $ (249) (5.7) (1.8) Homeowners (112) (8) (0.8) (0.1) Other personal lines (29) 46 (0.2) 0.4 Commercial lines (17) (28) (0.1) (0.2) Other business lines (6) (15) — (0.1) Total Allstate Protection $ (1,004) $ (254) (6.8) (1.8) (1) Reserve releases are shown in parentheses. (2) Ratios are calculated using Allstate Protection premiums earned. 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 March 31, ($ in millions, except ratios) 2026 2025 Change Amortization of DAC $ 1,821 $ 1,732 $ 89 Advertising expense 544 523 21 Other costs and expenses, net of other revenue 746 689 57 Amortization of purchased intangibles 39 46 (7) Restructuring and related charges 1 16 (15) Total underwriting expenses $ 3,151 $ 3,006 $ 145 Premiums earned $ 14,802 $ 14,027 $ 775 Expense ratio Amortization of DAC 12.3 12.4 (0.1) Advertising expense 3.7 3.7 — Other costs and expenses, net of other revenue 5.1 4.9 0.2 Subtotal 21.1 21.0 0.1 Amortization of purchased intangibles 0.2 0.3 (0.1) Restructuring and related charges — 0.1 (0.1) Total expense ratio 21.3 21.4 (0.1) 50 www.allstate.com Run-off Property-Liability Segment Results Run-off Property-Liability Segment Underwriting results ($ in millions) Three months ended March 31, 2026 2025 Claims and claims expense $ — $ (3) Operating costs and expenses (1) (1) Underwriting loss $ (1) $ (4) Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance ($ in millions) March 31, 2026 December 31, 2025 Asbestos claims Gross reserves $ 1,078 $ 1,098 Reinsurance (320) (329) Net reserves 758 769 Environmental claims Gross reserves 299 302 Reinsurance (54) (55) Net reserves 245 247 Other run-off claims Gross reserves 447 452 Reinsurance (37) (36) Net reserves 410 416 Total Gross reserves 1,824 1,852 Reinsurance (411) (420) Net reserves $ 1,413 $ 1,432 Reserves by type of exposure before and after the effects of reinsurance ($ in millions) March 31, 2026 December 31, 2025 Direct excess commercial insurance Gross reserves $ 1,042 $ 1,063 Reinsurance (333) (341) Net reserves 709 722 Assumed reinsurance coverage Gross reserves 580 584 Reinsurance (54) (54) Net reserves 526 530 Direct primary commercial insurance Gross reserves 96 98 Reinsurance (23) (24) Net reserves 73 74 Unallocated loss adjustment expenses Gross reserves 106 107 Reinsurance (1) (1) Net reserves 105 106 Total Gross reserves 1,824 1,852 Reinsurance (411) (420) 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”) March 31, 2026 December 31, 2025 Case IBNR Case IBNR Direct excess commercial insurance Gross reserves (1) 56 % 44 % 57 % 43 % Ceded (2) 66 34 66 34 Assumed reinsurance coverage Gross reserves 34 66 32 68 Ceded 40 60 44 56 Direct primary commercial insurance Gross reserves 39 61 38 62 Ceded 74 26 72 28 (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 March 31, 2026 2025 Direct excess commercial insurance Gross (1) $ 22 $ 26 Ceded (2) (9) (11) Assumed reinsurance coverage Gross 4 6 Ceded — — Direct primary commercial insurance Gross 1 1 Ceded (1) — (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 $13 million for the first quarter of 2026 compared to $6 million for the first quarter of 2025. 52 www.allstate.com Protection Services Segment Results Protection Services Segment Summarized financial information ($ in millions) Three months ended March 31, 2026 2025 Premiums written $ 727 $ 657 Revenues Premiums $ 751 $ 671 Other revenue 117 128 Intersegment insurance premiums and service fees (1) 31 37 Net investment income 23 24 Costs and expenses Claims and claims expense (199) (161) Amortization of DAC (348) (318) Operating costs and expenses (309) (309) Restructuring and related charges (4) — Income tax expense on operations (15) (17) Less: noncontrolling interest — — Adjusted net income $ 47 $ 55 Protection Plans $ 41 $ 45 Roadside 12 11 Dealer Services 5 4 Identity Protection 1 1 Arity (12) (6) Adjusted net income $ 47 $ 55 Policies in force Protection Plans 165,210 161,503 Roadside 1,379 867 Dealer Services 3,628 3,690 Identity Protection 2,752 2,648 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 10.7% 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 $30 million in the first quarter of 2026 compared to the first quarter of 2025, driven by growth at Protection Plans. Operating costs and expenses remained stable in the first quarter of 2026 compared to the first quarter of 2025. First Quarter 2026 Form 10-Q 53 Investments Investments Portfolio composition and strategy (1) March 31, 2026 ($ in millions) Property-Liability Protection Services Corporate and all other Total Fixed income securities (2) $ 49,621 $ 1,767 $ 7,672 $ 59,060 Equity securities (3) 8,631 415 1,385 10,431 Mortgage loans, net 868 — — 868 Limited partnership interests 8,940 — 6 8,946 Short-term investments (4) 4,150 229 326 4,705 Other investments, net 1,150 — — 1,150 Total $ 73,360 $ 2,411 $ 9,389 $ 85,160 Percent to total 86.1 % 2.9 % 11.0 % 100.0 % Market-based $ 63,533 $ 2,370 $ 9,346 $ 75,249 Performance-based 9,827 41 43 9,911 Total $ 73,360 $ 2,411 $ 9,389 $ 85,160 (1) Balances reflect the elimination of related-party investments between segments. (2) Fixed income securities are carried at fair value. 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 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 $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. As strategies and market conditions evolve, the asset allocation may change. 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. These investments include investee level expenses, reflecting asset level operating expenses on directly held real estate and other consolidated investments. 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 $2.03 billion. Private credit exposure We define private credit as investments in asset-based financing arrangements, corporate credit excluding SEC Rule 144a and similar exposures, and certain consumer lending exposures. Our private credit investments are primarily originated by third-party asset managers with global credit platforms and are generally secured by collateral, with 89% rated investment grade. Mortgage loans primarily consist of residential loans, which are secured by collateral and have recourse to the borrower. The following table reflects investments as of March 31, 2026 in private credit by investment type. 54 www.allstate.com Investments Private credit investments As of March 31, 2026 ($ in millions) Fixed income securities (1) Bank loans (1) Mortgage loans Total 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 March 31, 2026 ($ in millions) Market- based Performance-based Total Fixed income securities $ 58,949 $ 111 $ 59,060 Equity securities 10,052 379 10,431 Mortgage loans, net 868 — 868 Limited partnership interests 183 8,763 8,946 Short-term investments 4,702 3 4,705 Other investments, net 495 655 1,150 Total $ 75,249 $ 9,911 $ 85,160 Percent to total 88.4 % 11.6 % 100.0 % Unrealized net capital gains and losses Fixed income securities $ (279) $ 1 $ (278) Short-term investments (2) — (2) Other investments (2) — (2) Total $ (283) $ 1 $ (282) Fixed income securities Fixed income securities by type Fair value as of ($ in millions) March 31, 2026 December 31, 2025 U.S. government and agencies $ 12,042 $ 18,133 Municipal 5,990 5,643 Corporate 35,833 30,401 Foreign government 1,501 1,460 Asset-backed securities (“ABS”) 2,533 1,352 Mortgage-backed securities (“MBS”) 1,161 2,126 Total fixed income securities $ 59,060 $ 59,115 Fixed income securities are rated by third-party credit rating agencies or are internally rated. The Securities Valuation Office (“SVO”) of the National Association of Insurance Commissioners (“NAIC”) evaluates the fixed income securities of insurers for regulatory reporting and capital assessment purposes. The NAIC assigns securities to one of six credit quality categories defined as “NAIC designations”. In general, securities with NAIC designations of 1 and 2 are considered investment grade and securities with NAIC designations of 3 through 6 are considered below investment grade. The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings or a comparable internal rating. 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 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 First Quarter 2026 Form 10-Q 55 Investments 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. 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. Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating March 31, 2026 NAIC 1 NAIC 2 NAIC 3 A and above BBB BB ($ in millions) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) U.S. government and agencies $ 12,042 $ (98) $ — $ — $ — $ — Municipal 5,855 (41) 132 (1) — — Corporate Public 7,383 2 15,607 (94) 562 (8) Privately placed 3,318 (3) 4,962 (3) 2,494 (10) Total corporate 10,701 (1) 20,569 (97) 3,056 (18) Foreign government 1,472 (13) 29 1 — — ABS 2,367 (8) 111 (1) 16 — MBS 1,161 15 — — — — Total fixed income securities $ 33,598 $ (146) $ 20,841 $ (98) $ 3,072 $ (18) NAIC 4 NAIC 5-6 Total B CCC and lower Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) U.S. government and agencies $ — $ — $ — $ — $ 12,042 $ (98) Municipal — — 3 2 5,990 (40) Corporate Public 95 (1) — — 23,647 (101) Privately placed 1,273 (13) 139 (4) 12,186 (33) Total corporate 1,368 (14) 139 (4) 35,833 (134) Foreign government — — — — 1,501 (12) ABS 1 — 38 — 2,533 (9) MBS — — — — 1,161 15 Total fixed income securities $ 1,369 $ (14) $ 180 $ (2) $ 59,060 $ (278) Municipal bonds , including tax-exempt and taxable securities, include general obligations of state and local issuers and revenue bonds. Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by public entities in unregistered form. ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. 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 primarily consists of a U.S. Agency portfolio having collateral issued or guaranteed by U.S. government agencies. CMBS investments are primarily traditional conduit transactions collateralized by commercial mortgage loans, broadly diversified across property types and geographical area. 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 56 www.allstate.com Investments 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. We have 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 $520 million of bank loans, net as of March 31, 2026. Unrealized net capital gains (losses) March 31, December 31, ($ in millions) 2026 2025 U.S. government and agencies $ (98) $ (32) Municipal (40) 26 Corporate (134) 351 Foreign government (12) (4) ABS (9) 4 MBS 15 40 Fixed income securities (278) 385 Short-term investments (2) (1) Derivatives (2) (2) Unrealized net capital gains and losses, pre-tax $ (282) $ 382 Gross unrealized gains (losses) on fixed income securities by type and sector ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses March 31, 2026 Corporate Banking $ 3,991 $ 42 $ (30) $ 4,003 Basic industry 1,382 9 (16) 1,375 Capital goods 3,726 35 (48) 3,713 Communications 2,685 21 (43) 2,663 Consumer goods (cyclical and non-cyclical) 7,332 62 (79) 7,315 Energy 4,033 38 (32) 4,039 Financial services 2,573 15 (44) 2,544 Technology 3,197 20 (70) 3,147 Transportation 993 8 (14) 987 Utilities 5,596 63 (63) 5,596 Other 459 2 (10) 451 Total corporate fixed income portfolio 35,967 315 (449) 35,833 U.S. government and agencies 12,140 10 (108) 12,042 Municipal 6,030 43 (83) 5,990 Foreign government 1,513 9 (21) 1,501 ABS 2,542 5 (14) 2,533 MBS 1,146 18 (3) 1,161 Total fixed income securities $ 59,338 $ 400 $ (678) $ 59,060 First Quarter 2026 Form 10-Q 57 Investments Gross unrealized gains (losses) on fixed income securities by type and sector ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses December 31, 2025 Corporate Banking $ 3,720 $ 83 $ (11) $ 3,792 Basic industry 1,028 19 (9) 1,038 Capital goods 3,142 64 (22) 3,184 Communications 2,195 38 (21) 2,212 Consumer goods (cyclical and non-cyclical) 6,097 124 (42) 6,179 Energy 2,715 55 (17) 2,753 Financial services 2,430 39 (21) 2,448 Technology 2,956 40 (47) 2,949 Transportation 831 14 (6) 839 Utilities 4,465 104 (27) 4,542 Other 471 5 (11) 465 Total corporate fixed income portfolio 30,050 585 (234) 30,401 U.S. government and agencies 18,165 43 (75) 18,133 Municipal 5,617 87 (61) 5,643 Foreign government 1,464 13 (17) 1,460 ABS 1,348 8 (4) 1,352 MBS 2,086 41 (1) 2,126 Total fixed income securities $ 58,730 $ 777 $ (392) $ 59,115 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. Similarly, gross unrealized gains reflect a decrease in market yields since the time of initial purchase. Equity securities by sector March 31, 2026 December 31, 2025 ($ in millions) Cost Over (under) cost Fair value Cost Over (under) cost Fair value Banking $ 398 $ 33 $ 431 $ 298 $ 58 $ 356 Basic industry 165 17 182 105 7 112 Capital goods 642 26 668 412 12 424 Communications 398 3 401 333 19 352 Consumer goods 1,628 (30) 1,598 1,107 22 1,129 Energy 279 83 362 187 8 195 Financial services 481 (14) 467 357 17 374 REITs 224 26 250 163 24 187 Technology 2,236 (67) 2,169 2,039 133 2,172 Transportation 80 6 86 51 2 53 Utilities 214 5 219 167 (4) 163 Other 5 (2) 3 5 (2) 3 Directly held equity securities 6,750 86 6,836 5,224 296 5,520 Funds Equities 1,388 (10) 1,378 1,544 67 1,611 Fixed income and short-term 2,212 1 2,213 1,257 8 1,265 Other 4 — 4 1 1 2 Total funds 3,604 (9) 3,595 2,802 76 2,878 Total equity securities $ 10,354 $ 77 $ 10,431 $ 8,026 $ 372 $ 8,398 58 www.allstate.com Investments Net investment income Three months ended March 31, ($ in millions) 2026 2025 Fixed income securities $ 666 $ 608 Equity securities 41 20 Mortgage loans 12 10 Limited partnership interests 206 194 Short-term investments 59 72 Other investments 26 21 Investment income, before expense 1,010 925 Investment expense Investee level expenses (12) (10) Securities lending expense (17) (22) Operating costs and expenses (43) (39) Total investment expense (72) (71) Net investment income $ 938 $ 854 Market-based $ 791 $ 719 Performance-based 219 206 Investment income, before expense $ 1,010 $ 925 Net investment income increased 9.8% or $84 million in the first quarter of 2026, primarily related to higher market-based income resulting from higher average investment balances and improved performance-based investment results. Performance-based investment income Three months ended March 31, ($ in millions) 2026 2025 Private equity $ 111 $ 103 Real estate 108 103 Total performance-based income before investee level expenses $ 219 $ 206 Investee level expenses (1) (12) (10) 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 5.6% or $11 million in the first quarter of 2026 compared to the same period of 2025 primarily due to private equity valuation increases and higher real estate investment results. Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The Company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. As a result, performance-based income in the first quarter of 2026 is primarily comprised of operating and market performance and results of our investments for the three months ended December 31, 2025, and may not reflect all economic conditions, including the effects of recent and ongoing trade policy developments. First Quarter 2026 Form 10-Q 59 Investments Components of net gains (losses) on investments and derivatives and the related tax effect Three months ended March 31, ($ in millions) 2026 2025 Sales $ (4) $ (137) Credit losses (1) (7) (76) Valuation change of equity investments - appreciation (decline): Equity securities (364) (117) Equity fund investments in fixed income securities and short-term investments (17) 5 Limited partnerships (2) (7) (5) Total valuation of equity investments (388) (117) Valuation change and settlements of derivatives (6) (19) Net gains (losses) on investments and derivatives, pre-tax (405) (349) Income tax benefit 85 73 Net gains (losses) on investments and derivatives, after-tax $ (320) $ (276) Market-based (1) $ (390) $ (321) Performance-based (15) (28) Net gains (losses) on investments and derivatives, pre-tax $ (405) $ (349) (1) 2025 includes losses recorded for variable interests in Reciprocal Exchanges. See Note 7 for further details. (2) Relates to limited partnerships where the underlying assets are predominately public equity securities. 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 March 31, ($ in millions) 2026 2025 Sales $ (4) $ (9) Credit losses (7) (7) Valuation change of equity investments (14) 7 Valuation change and settlements of derivatives 10 (19) Total performance-based $ (15) $ (28) 60 www.allstate.com Capital Resources and Liquidity Capital Resources and Liquidity Capital resources consist of shareholders’ equity and debt, representing funds deployed or available to be deployed to support business operations or for general corporate purposes. Capital resources ($ 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 (loss) income (292) 255 Total Allstate shareholders’ equity 31,607 30,610 Debt (1) 7,491 7,490 Total capital resources $ 39,098 $ 38,100 Ratio of debt to Allstate shareholders’ equity 23.7 % 24.5 % Ratio of debt to capital resources 19.2 19.7 (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 $550 million of debt that is scheduled to mature in December 2026. Debt maturities for each of the next five years and thereafter (excluding issuance costs) ($ in millions) 2027 $ — 2028 — 2029 500 2030 600 2031 — Thereafter 5,891 Total long-term debt principal $ 6,991 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. These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock. 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. Liquidity is managed at both the entity and enterprise level across the Company and is assessed on both base and stressed level liquidity needs. We believe we have sufficient liquidity to meet these needs. 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 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. AIC serves as a lender and borrower, certain other subsidiaries serve only as borrowers, and the Corporation serves only as a lender. The maximum amount of potential funding under each of these agreements is $1.00 billion. In addition to the Liquidity Agreement, the Corporation also has an intercompany loan agreement with certain of its subsidiaries, which includes, but is not limited to, AIC. The amount of intercompany loans available to the Corporation’s subsidiaries is at the discretion of the Corporation. 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 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 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 three months of 2026, we did not defer interest payments on the subordinated debentures. Additional resources to support liquidity are as follows: • The Corporation and AIC have access to a $750 million unsecured revolving credit facility that is available for short-term liquidity requirements. The maturity date of this facility is November 2027. The facility is fully subscribed among 11 lenders with the largest commitment being $95 million. The commitments of the lenders are several and no lender is responsible for any other lender’s commitment if such lender fails to make a loan under the facility. This facility contains an increase provision that would allow up to an additional $500 million of borrowing, subject to the lenders’ commitment. This facility has a financial covenant requiring that we not exceed a 37.5% debt to capitalization ratio as defined in the agreement. 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. There were no borrowings under the credit facility during 2026. • 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 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 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. 62 www.allstate.com Forward-Looking Statements This report contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. These statements may address, among other things, our strategy for growth, catastrophe exposure management, product development, investment results, regulatory approvals, market position, expenses, financial results, litigation and reserves. We believe that these statements are based on reasonable estimates, assumptions and plans. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements resulting from new information or future events or developments. In addition, forward-looking statements are subject to certain risks or uncertainties that could cause actual results to differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include risks related to: Insurance and Financial Services (1) actual claim costs exceeding current reserves; (2) increases in claim frequency or severity; (3) catastrophes and severe weather events; (4) limitations in analytical models used for loss cost estimates; (5) price competition and changes in regulation and underwriting standards; (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; (9) participation in indemnification programs, including state industry pools and facilities; (10) inability to mitigate the impact associated with changes in capital requirements; (11) a downgrade in financial strength ratings; Business, Strategy and Operations (12) operations in markets that are highly competitive; (13) changing consumer preferences; (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; (17) catastrophe management strategy; (18) restrictions on our subsidiaries’ ability to pay dividends; (19) restrictions under terms of some of our securities on the ability to pay dividends or repurchase stock; (20) the availability and cost of reinsurance; (21) counterparty risk related to reinsurance; (22) acquisitions and divestitures of businesses; (23) intellectual property infringement, misappropriation and third-party claims; (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; Macro, Regulatory and Risk Environment (28) conditions in the global economy and capital markets, including changes in U.S. trade and tariff policy, new or additional U.S. and responsive non-U.S. tariffs, and our ability to plan for and respond to the impact of those changes; (29) restrictions on liquidity or availability of credit on acceptable terms; (30) widespread disruptive or destabilizing events; (31) changing climate and weather conditions; (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; (35) regulatory and federal agency reforms; (36) losses from legal and regulatory actions; (37) changes in or the application of accounting standards and changes in tax laws; and (38) misconduct or fraudulent acts by employees, agents and third parties. Additional information concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K.