What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-04-29 · 359 added, 218 removed, 1349 unchanged (30% of the section changed)

3 unchanged sentences

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

June 30, Six months ended June 30,

2026 2025 2026 2025

Property and casualty insurance premiums $ 15,670 $ 15,041 $ 31,223 $ 29,739

7 unchanged sentences

Accident, health and other policy benefits

72 188 148 521

Amortization of deferred policy acquisition costs 2,202 2,076 4,380 4,163

5 unchanged sentences

Total costs and expenses 14,454 14,820 28,287 30,553

Gain on disposition of operations

Income from operations before income tax expense 4,142 2,703 7,250 3,422

1 unchanged sentence

Net income 3,271 2,099 5,729 2,695

Net income attributable to noncontrolling interest 1 1

Net income (loss) attributable to noncontrolling interest — ( 10 ) 1 ( 9 )

Net income attributable to Allstate 3,271 2,109 5,728 2,704

7 unchanged sentences

See notes to condensed consolidated financial statements.

First Quarter 2026 Form 10-Q 1

Second Quarter 2026 Form 10-Q 1

Condensed Consolidated Financial Statements

1 unchanged sentence

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Net income $ 3,271 $ 2,099 $ 5,729 $ 2,695

Other comprehensive (loss) income, after-tax

Other comprehensive income (loss), after-tax

Unrealized net capital gains and losses 142 387 ( 376 ) 807

2 unchanged sentences

Discount rate for reserve for future policy benefits

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

— ( 19 ) — ( 14 )

Other comprehensive income (loss), after-tax 99 452 ( 448 ) 832

Comprehensive income 3,370 2,551 5,281 3,527

Comprehensive income attributable to noncontrolling interest 1 5

Comprehensive (loss) income attributable to noncontrolling interest — ( 11 ) 1 ( 6 )

Comprehensive income attributable to Allstate $ 3,370 $ 2,562 $ 5,280 $ 3,533

4 unchanged sentences

Condensed Consolidated Statements of Financial Position (unaudited)

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

($ in millions, except par value data) June 30,

2026 December 31, 2025

Fixed income securities, at fair value (amortized cost, net $ 60,902 and $ 58,730 )

10 unchanged sentences

Accrued investment income 730 708

Deferred income taxes 12 —

Property and equipment, net 591 627

27 unchanged sentences

See notes to condensed consolidated financial statements.

First Quarter 2026 Form 10-Q 3

Second Quarter 2026 Form 10-Q 3

Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)

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

($ in millions, except per share data) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Preferred stock par value $ — $ — $ — $ —

23 unchanged sentences

Change in discount rate for reserve for future policy benefits

— ( 19 ) — ( 14 )

Balance, end of period ( 193 ) ( 57 ) ( 193 ) ( 57 )

3 unchanged sentences

Change in unrealized net capital gains and losses — ( 1 ) — 3

Noncontrolling income 1 1

Noncontrolling income (loss) — ( 10 ) 1 ( 9 )

Capital transactions for noncontrolling interest

6 unchanged sentences

Condensed Consolidated Statements of Cash Flows (unaudited)

($ in millions) Three months ended

($ in millions) Six months ended

Cash flows from operating activities

4 unchanged sentences

Pension and other postretirement remeasurement (gains) losses ( 127 ) 78

Gain on disposition of operations

Claims and claims expense and other insurance reserves

24 unchanged sentences

Purchases of property and equipment, net ( 83 ) ( 91 )

Proceeds from disposition of operations, net of cash transferred

Net cash used in investing activities ( 3,788 ) ( 2,501 )

13 unchanged sentences

See notes to condensed consolidated financial statements.

First Quarter 2026 Form 10-Q 5

Second Quarter 2026 Form 10-Q 5

Notes to Condensed Consolidated Financial Statements

5 unchanged sentences

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

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

The condensed consolidated financial statements and notes as of June 30, 2026 and for the three and six-month periods ended June 30, 2026 and 2025 are unaudited.

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

39 unchanged sentences

Computation of basic and diluted earnings per common share

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

Net income attributable to noncontrolling interest

(In millions, except per share data) Three months ended June 30, Six months ended June 30,

2025 2026 2025

Net income (loss) attributable to noncontrolling interest

Net income attributable to Allstate 3,271

12 unchanged sentences

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

First Quarter 2026 Form 10-Q 7

0.7 0.5 0.6 0.4

Second Quarter 2026 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements

18 unchanged sentences

Reportable segments financial performance

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Run-off Property-Liability

— ( 3 ) ( 1 ) ( 7 )

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

4 unchanged sentences

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

885 687 1,730 1,470

Net gains (losses) on investments and derivatives 1,055 ( 144 ) 650 ( 493 )

1 unchanged sentence

Amortization of purchased intangibles (1)

( 8 ) ( 11 ) ( 16 ) ( 24 )

Gain on disposition

All other (2)

5 ( 5 ) 17 ( 9 )

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

1 unchanged sentence

Total reconciling items 1,231 814 1,014 1,029

Net income attributable to noncontrolling interest (4)

Net income (loss) attributable to noncontrolling interest (4)

1 ( 10 ) 2 ( 9 )

Net income applicable to common shareholders $ 3,241 $ 2,079 $ 5,669 $ 2,645

3 unchanged sentences

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

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

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

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1 unchanged sentence

Reportable segments revenue information

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Allstate Protection

2 unchanged sentences

Homeowners 4,201 3,771 8,365 7,428

Other personal lines 820 741

Specialty lines 822 779 1,642 1,520

Commercial lines 107 104 208 217

Other business lines 170 169

Brokered solutions and collateral protection 144 164 314 333

Total Allstate Protection insurance premiums 14,918 14,346 29,720 28,373

7 unchanged sentences

Protection and insurance products

125 125 251 250

Intersegment premiums and service fees (1)

14 unchanged sentences

Total Corporate

139 106 154 134

Reconciliation of revenue

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

885 687 1,730 1,470

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

5 unchanged sentences

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

First Quarter 2026 Form 10-Q 9

Second Quarter 2026 Form 10-Q 9

Notes to Condensed Consolidated Financial Statements

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

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

10 unchanged sentences

1,404 1,242 2,694 2,419

13,480 13,567 26,167 27,718

Run-off Property-Liability

3 unchanged sentences

Claims and claims expense

198 170 397 331

Amortization of DAC 356 328 704 646

Non-deferrable commissions

124 110 250 211

Restructuring and related charges — 1 4 1

Other segment expenses (2)

186 180 369 388

Income taxes on operations (3)

5 unchanged sentences

Income taxes on operations (3)

Total — 194 — 634

Interest expense 96 100 194 200

4 unchanged sentences

Total $ 156 $ 154 $ 300 $ 288

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

(1) Includes Allstate Protection incurred loss adjustment expenses, net of reinsurance of $ 799 million and $ 750 million during the three months ended June 30, 2026 and 2025, respectively, and $ 1.58 billion and $ 1.48 billion during the six months ended June 30, 2026 and 2025, respectively.

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

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

(3) Excludes taxes attributable to items excluded from the segment’s reported measure of profit or loss.

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1 unchanged sentence

Additional significant financial performance data

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

7 unchanged sentences

Allstate Protection

$ 38 $ 46 $ 77 $ 92

Protection Services 6 9 12 18

3 unchanged sentences

Allstate Protection and Run-off Property-Liability

$ 812 $ 350 $ 1,480 $ 498

Protection Services 23 16 35 29

1 unchanged sentence

35 ( 9 ) 2 ( 55 )

1 ( 2 ) 4 ( 3 )

Consolidated $ 871 $ 604 $ 1,521 $ 727

2 unchanged sentences

Reportable segments total assets, investments and deferred policy acquisition costs

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

($ in millions) June 30, 2026 December 31, 2025

Allstate Protection and Run-off Property-Liability

14 unchanged sentences

(1) The balances reflect the elimination of related party investments between segments.

First Quarter 2026 Form 10-Q 11

Second Quarter 2026 Form 10-Q 11

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Portfolio composition

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

($ in millions) June 30, 2026 December 31, 2025

Fixed income securities, at fair value $ 60,809 $ 59,115

7 unchanged sentences

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

March 31, 2026

June 30, 2026

government and agencies $ 12,442 $ 12 $ ( 103 ) $ 12,351

3 unchanged sentences

Asset-backed securities (“ABS”) 1,976 7 ( 12 ) 1,971

2,542 5 ( 14 ) 2,533

Mortgage-backed securities (“MBS”)

10 unchanged sentences

Scheduled maturities for fixed income securities

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

($ in millions) June 30, 2026 December 31, 2025

Amortized cost, net Fair

12 unchanged sentences

Net investment income

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Fixed income securities $ 710 $ 602 $ 1,376 $ 1,210

7 unchanged sentences

Net investment income

$ 1,009 $ 754 $ 1,947 $ 1,608

Net gains (losses) on investments and derivatives by type

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Fixed income securities $ ( 117 ) $ ( 250 ) $ ( 116 ) $ ( 378 )

Equity securities 1,158 164 777 52

Mortgage loans ( 3 ) — ( 3 ) —

Limited partnership interests 20 13 4 8

1 unchanged sentence

Other investments (1)

23 ( 6 ) 20 ( 91 )

Net gains (losses) on investments and derivatives $ 1,055 $ ( 144 ) $ 650 $ ( 493 )

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

(1) 2025 includes $ 67 million of losses related to variable interests in Adirondack Insurance Exchange (“Adirondack”) and New Jersey Skylands Insurance Association (“Skylands”) (together “Reciprocal Exchanges”).

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

($ in millions)

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Sales $ ( 80 ) $ ( 245 ) $ ( 84 ) $ ( 382 )

6 unchanged sentences

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Gross realized gains $ 61 $ 116 $ 185 $ 187

1 unchanged sentence

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Equity securities $ 960 $ 129 $ 821 $ 125

Limited partnership interests carried at fair value

( 10 ) ( 12 ) ( 5 ) ( 29 )

Total $ 950 $ 117 $ 816 $ 96

First Quarter 2026 Form 10-Q 13

Second Quarter 2026 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements

Credit losses recognized in net income

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Fixed income securities:

2 unchanged sentences

Limited partnership interests ( 7 ) ( 4 ) ( 14 ) ( 4 )

Mortgage loans ( 3 ) — ( 3 ) —

Other investments

Bank loans ( 5 ) ( 1 ) ( 5 ) ( 9 )

Other assets ( 3 ) — ( 3 ) ( 52 )

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

4 unchanged sentences

gains (losses)

March 31, 2026 Gains Losses

June 30, 2026 Gains Losses

Fixed income securities $ 60,809 $ 445 $ ( 538 ) $ ( 93 )

15 unchanged sentences

Change in unrealized net capital gains (losses)

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

($ in millions) Six months ended June 30, 2026

Fixed income securities $ ( 478 )

5 unchanged sentences

Mortgage loans, net of credit allowance

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

($ in millions) June 30, 2026 December 31, 2025

Commercial $ 548 $ 619

5 unchanged sentences

Carrying value for limited partnership interests

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

($ in millions) June 30, 2026 December 31, 2025

Private equity $ 7,092 $ 7,247

4 unchanged sentences

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

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

As of June 30, 2026 and December 31, 2025, the fair value of short-term investments totaled $ 4.87 billion and $ 4.89 billion, respectively.

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

2 unchanged sentences

Other investments by asset type

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

($ in millions) June 30, 2026 December 31, 2025

Real estate $ 575 $ 630

19 unchanged sentences

When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company reduces the credit loss allowance.

First Quarter 2026 Form 10-Q 15

Second Quarter 2026 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements

Recoveries after write-offs are recognized when received.

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

Accrued interest excluded from the amortized cost of fixed income securities totaled $ 689 million and $ 662 million as of June 30, 2026 and December 31, 2025, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position.

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

9 unchanged sentences

Rollforward of credit loss allowance for fixed income securities

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

1 unchanged sentence

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

Net increases related to credit losses previously reported — —

(Increase) decrease related to sales and other

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

Write-offs — — — —

Ending balance $ ( 10 ) $ ( 17 ) $ ( 10 ) $ ( 17 )

Components of credit loss allowance as of March 31

Components of credit loss allowance as of June 30

Corporate bonds ( 8 ) ( 16 )

5 unchanged sentences

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

March 31, 2026

June 30, 2026

Fixed income securities

22 unchanged sentences

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

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

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

fair values of $ 23 million and $ 11 million, unrealized losses of $ 3 million and $ 2 million, and credit loss allowances of $ 1 million and $ 1 million as of June 30, 2026 and December 31, 2025, respectively.

Gross unrealized losses by unrealized loss position and credit quality as of June 30, 2026

($ in millions) Investment

9 unchanged sentences

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

Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit

spreads since the time of initial purchase.

The unrealized losses are expected to reverse as the securities approach maturity.

Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase.

unrealized losses are expected to reverse as the securities approach maturity.

ABS and MBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings.

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

First Quarter 2026 Form 10-Q 17

Second Quarter 2026 Form 10-Q 17

Notes to Condensed Consolidated Financial Statements

expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread.

class of securities the Company owns, such as overcollateralization and excess spread.

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

As of March 31, 2026, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

As of June 30, 2026, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

Loans The Company establishes a credit loss allowance for mortgage loans and bank loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company.

9 unchanged sentences

Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable.

Accrued income receivable is monitored for recoverability and

when not expected to be collected is written off through net investment income.

Accrued income receivable is monitored for recoverability and when not expected to be collected is written off

through net investment income.

Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost.

13 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

7 unchanged sentences

($ in millions) Commercial

March 31, 2026

June 30, 2026

Less than 90 days past due

14 unchanged sentences

Rollforward of credit loss allowance for mortgage loans

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

4 unchanged sentences

$ ( 13 ) $ ( 12 ) $ ( 13 ) $ ( 12 )

Components of credit loss allowance as of March 31

Components of credit loss allowance as of June 30

$ ( 10 ) $ ( 11 )

5 unchanged sentences

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

First Quarter 2026 Form 10-Q 19

Second Quarter 2026 Form 10-Q 19

Notes to Condensed Consolidated Financial Statements

Bank loans amortized cost by credit rating and year of origination

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

8 unchanged sentences

Rollforward of credit loss allowance for bank loans

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Beginning balance $ ( 16 ) $ ( 16 ) $ ( 17 ) $ ( 10 )

26 unchanged sentences

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

The Company performs procedures to understand and

20 www.allstate.com

Notes to Condensed Consolidated Financial Statements

assess the methodologies, processes and controls of valuation service providers.

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

In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities.

31 unchanged sentences

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

First Quarter 2026 Form 10-Q 21

Second Quarter 2026 Form 10-Q 21

Notes to Condensed Consolidated Financial Statements

17 unchanged sentences

These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility.

Other primary inputs include interest rate yield curves and quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair

value measurements.

Other primary inputs include interest

rate yield curves and quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.

Certain OTC interest rate swaps associated with real estate investments are valued using non-market observable counterparty valuations.

3 unchanged sentences

This derivative is categorized as Level 3 due to the significance of non-market observable inputs.

• Assets held for sale:

Comprise corporate fixed income securities.

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

Assets measured at fair value on a non-recurring basis

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

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

Investments excluded from the fair value hierarchy

3 unchanged sentences

The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10 - 12 years.

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

As of June 30, 2026, the Company has commitments to invest $ 117 million in limited partnership interests that are reported at NAV.

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1 unchanged sentence

Assets and liabilities measured at fair value

March 31, 2026

June 30, 2026

($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total

23 unchanged sentences

(2) Includes $ 479 million of equity securities and $ 584 million of limited partnerships.

First Quarter 2026 Form 10-Q 23

Second Quarter 2026 Form 10-Q 23

Notes to Condensed Consolidated Financial Statements

26 unchanged sentences

(2) Includes $ 466 million of equity securities and $ 800 million of limited partnerships.

As of March 31, 2026 and December 31, 2025, Level 3 fair value measurements of fixed income securities totaled $ 300 million and $ 308 million, respectively, and included $ 149 million and $ 146 million, respectively, of securities valued based on third-party discounted cash flow pricing models where the inputs have not been corroborated to be market observable, $ 11 million and $ 12 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 3 million and $ 29 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies.

As of June 30, 2026 and December 31, 2025, Level 3 fair value measurements of fixed income securities totaled $ 344 million and $ 308 million, respectively, and included $ 203 million and $ 146 million, respectively, of securities valued based on third-party discounted cash flow pricing models where the inputs have not been corroborated to be market observable, $ 11 million and $ 12 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $ 3 million and $ 29 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies.

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

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

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

Rollforward of Level 3 assets and liabilities held at fair value during the three-month period ended June 30, 2026

Balance as of

March 31, 2026 Total gains (losses)

Transfers Balance as of

June 30, 2026

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

Fixed income securities:

Municipal $ 3 $ — $ — $ — $ — $ — $ — $ — $ 3

Corporate - public 12 — — — — — — — 12

Corporate - privately placed 174 — ( 1 ) — — 4 ( 3 ) ( 7 ) 167

ABS 42 — 1 — ( 10 ) 61 — ( 1 ) 93

69 — — — — — — — 69

Total fixed income securities 300 — — — ( 10 ) 65 ( 3 ) ( 8 ) 344

Equity securities 18 — — — — — — — 18

Short-term investments 10 — — — ( 3 ) 1 ( 1 ) ( 1 ) 6

Other investments 1 — — — — — — — 1

Other assets 128 2 — — — — — — 130

Total recurring Level 3 assets 457 2 — — ( 13 ) 66 ( 4 ) ( 9 ) 499

Other liabilities

( 1 ) 1 — — — — — — —

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

Rollforward of Level 3 assets and liabilities held at fair value during the six-month period ended June 30, 2026

Balance as of

December 31, 2025 Total gains (losses)

Transfers Balance as of

March 31, 2026

June 30, 2026

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

14 unchanged sentences

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

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

Second Quarter 2026 Form 10-Q 25

Notes to Condensed Consolidated Financial Statements

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

Balance as of

March 31, 2025 Total gains (losses)

Transfers Balance as of

June 30, 2025

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

Fixed income securities:

Municipal $ 2 $ — $ — $ — $ — $ — $ — $ — $ 2

Corporate - public 35 — — — — — — — 35

Corporate - privately placed 109 — 1 — — — — ( 1 ) 109

ABS 51 — — — ( 26 ) 15 — ( 1 ) 39

MBS 88 — — — — — — — 88

Total fixed income securities 285 — 1 — ( 26 ) 15 — ( 2 ) 273

Equity securities 416 16 — — — 1 ( 75 ) — 358

Short-term investments 2 — — — — 2 — — 4

Other investments 1 — — — — — — — 1

Other assets 134 3 — — — — — — 137

Assets held for sale 7 — 1 — — — ( 8 ) — —

Total recurring Level 3 assets 845 19 2 — ( 26 ) 18 ( 83 ) ( 2 ) 773

Other liabilities ( 1 ) — — — — — — — ( 1 )

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

Rollforward of Level 3 assets and liabilities held at fair value during the six-month period ended June 30, 2025

Balance as of

December 31, 2024 Total gains (losses)

Transfers Balance as of

March 31, 2025

June 30, 2025

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

3 unchanged sentences

Corporate - privately placed 110 ( 1 ) 1 — — — — ( 1 ) 109

ABS 26 — — 26 ( 26 ) 15 — ( 2 ) 39

88 — — — — — — — 88

6 unchanged sentences

Total recurring Level 3 assets 802 31 3 26 ( 33 ) 43 ( 96 ) ( 3 ) 773

Other liabilities — ( 1 ) — — — — — — ( 1 )

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

Total Level 3 gains (losses) included in net income

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

Net investment income $ — $ 13

Net gains (losses) on investments and derivatives

$ 1 $ 16 $ — $ 27

Operating costs and expenses

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

Transfers into Level 3 during the three months ended March 31, 2025 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3.

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

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

Any gains or losses related to the change in

First Quarter 2026 Form 10-Q 25

There were no transfers into Level 3 during the three and six months ended June 30, 2026.

There were no transfers into Level 3 during the three months ended June 30, 2025.

Transfers into Level 3 during the six months ended June 30, 2025 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or

had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3.

Transfers out of Level 3 during the three months ended June 30, 2026 included situations where a quote that was not provided by the Company’s independent third-party valuation service provider in the prior

26 www.allstate.com

Notes to Condensed Consolidated Financial Statements

valuation source for individual securities were not significant.

period became available in the current period.

Transfers out of Level 3 during the six months ended June 30, 2026 included situations where a rating that was not provided by third-party rating agencies in the prior period became available in the current period and situations where a quote that was not provided by the Company’s independent third-party valuation service provider in the prior period became available in the current period.

Transfers out of Level 3 during the three and six months ended June 30, 2025 included situations where

a broker quote was used in the prior period and a quote with market observable inputs became available from the Company’s independent third-party valuation service provider in the current period.

Any gains or losses related to the change in valuation source for individual securities were not significant.

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

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

1 unchanged sentence

Corporate - public $ — $ — $ — $ ( 1 )

Corporate - privately placed ( 1 ) — ( 1 ) —

Total fixed income securities ( 1 ) — ( 1 ) ( 1 )

2 unchanged sentences

Total recurring Level 3 assets $ 1 $ 18 $ 6 $ 31

Other liabilities $ 1 $ — $ 1 $ ( 1 )

Total recurring Level 3 liabilities 1 — 1 ( 1 )

Total included in net income $ 2 $ 18 $ 7 $ 30

Components of net income

Net investment income $ — $ 14

Net gains (losses) on investments and derivatives $ — $ 15 $ ( 1 ) $ 27

5 unchanged sentences

Financial instruments not carried at fair value

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

($ in millions) June 30, 2026 December 31, 2025

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

9 unchanged sentences

The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication.

Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations.

Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from

changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations.

Second Quarter 2026 Form 10-Q 27

Notes to Condensed Consolidated Financial Statements

Asset replication refers to the “synthetic” creation of assets through the use of derivatives.

7 unchanged sentences

In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts.

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

26 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

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

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

As of June 30, 2026 and December 31, 2025, the Company has not designated any fair value, cash flow or net investment hedge accounting relationships.

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

9 unchanged sentences

There are no collateral requirements related to the contingent consideration.

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

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Notes to Condensed Consolidated Financial Statements

Summary of the volume and fair value positions of derivative instruments as of June 30, 2026

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

4 unchanged sentences

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

Options Other investments n/a 105 — — —

Futures Other assets n/a 5,743 3 3 —

21 unchanged sentences

(n/a = not applicable)

First Quarter 2026 Form 10-Q 27

Second Quarter 2026 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

34 unchanged sentences

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

March 31, 2026

June 30, 2026

Asset derivatives $ 9 $ ( 6 ) $ — $ 3 $ ( 3 ) $ —

8 unchanged sentences

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

Three months ended March 31, 2026

Three months ended June 30, 2026

Interest rate contracts $ ( 33 ) $ — $ ( 33 )

4 unchanged sentences

Total $ ( 26 ) $ 33 $ 7

Three months ended March 31, 2025

Six months ended June 30, 2026

Interest rate contracts $ ( 46 ) $ — $ ( 46 )

Equity and index contracts 1 23 24

Contingent consideration — 8 8

Foreign currency contracts 11 — 11

Credit default contracts 2 — 2

Total $ ( 32 ) $ 31 $ ( 1 )

Three months ended June 30, 2025

Interest rate contracts $ ( 9 ) $ — $ ( 9 )

Equity and index contracts ( 8 ) 17 9

Contingent consideration — 3 3

Foreign currency contracts ( 38 ) — ( 38 )

Credit default contracts ( 10 ) — ( 10 )

Total $ ( 65 ) $ 20 $ ( 45 )

Six months ended June 30, 2025

Interest rate contracts $ ( 10 ) $ — $ ( 10 )

Equity and index contracts ( 8 ) 6 ( 2 )

Contingent consideration — 3 3

Foreign currency contracts ( 56 ) — ( 56 )

Credit default contracts ( 10 ) — ( 10 )

Total $ ( 84 ) $ 9 $ ( 75 )

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable MNAs and obtaining collateral where appropriate.

1 unchanged sentence

OTC cash and securities collateral pledged

($ in millions) March 31, 2026

($ in millions) June 30, 2026

Pledged by the Company $ 1

1 unchanged sentence

(1) $ 1 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision.

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

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

nonperformance.

Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

1 unchanged sentence

This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable MNAs.

Second Quarter 2026 Form 10-Q 31

Notes to Condensed Consolidated Financial Statements

OTC derivatives counterparty credit exposure by counterparty credit rating

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

($ in millions) June 30, 2026 December 31, 2025

Number of counter-parties Notional amount (2)

11 unchanged sentences

Exchange traded and cleared margin deposits

($ in millions) March 31, 2026

($ in millions) June 30, 2026

Pledged by the Company $ 88

2 unchanged sentences

Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions.

To limit this risk,

the Company’s senior management has established risk control limits.

Certain of the Company’s derivative transactions contain credit-risk-contingent termination events and cross-default provisions.

To limit this risk, the Company’s senior management has established risk control limits.

Certain of the Company’s derivative transactions contain credit-risk-contingent termination events and

cross-default provisions.

Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s financial strength credit ratings by Moody’s or S&P fall below a certain level.

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

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

First Quarter 2026 Form 10-Q 29

Notes to Condensed Consolidated Financial Statements

or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in

accordance with provisions within legally enforceable MNAs.

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

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

($ in millions) June 30, 2026 December 31, 2025

Gross liability fair value of contracts containing credit-risk-contingent features $ 7 $ 16

6 unchanged sentences

CDS typically have a five-year term.

32 www.allstate.com

Notes to Condensed Consolidated Financial Statements

CDS notional amounts by credit rating and fair value of protection sold

1 unchanged sentence

AAA AA A BBB BB and

March 31, 2026

June 30, 2026

Corporate debt $ — $ — $ — $ 300 $ 47 $ 347 $ 10

14 unchanged sentences

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

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

Due to ongoing operating losses, the Company recorded a loss related to variable interests held in the

Reciprocal Exchanges of $ 67 million in the first quarter of 2025.

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

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

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

30 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

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

Assets and liabilities of Reciprocal Exchanges

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

($ in millions) June 30, 2026 December 31, 2025

Fixed income securities $ 3 $ 4

1 unchanged sentence

Reinsurance recoverables, net 40 53

Other assets 1 —

Total assets $ 95 $ 125

2 unchanged sentences

Total liabilities $ 308 $ 339

Second Quarter 2026 Form 10-Q 33

Notes to Condensed Consolidated Financial Statements

Note 8 Reserve for Property and Casualty Insurance Claims and Claims Expense

11 unchanged sentences

Reserves for prior accident years are statistically determined using several different actuarial estimation methods.

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

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

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

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

When changes in claim data occur, actuarial judgment is used to determine appropriate

development factors to establish reserves.

The Company’s reserving process incorporates changes in loss patterns, operational statistics and changes in claims reporting processes to determine its best estimate of recorded reserves.

6 unchanged sentences

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

Changes in reserve estimates, which

First Quarter 2026 Form 10-Q 31

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

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

34 www.allstate.com

Notes to Condensed Consolidated Financial Statements

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

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

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

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

Three months ended March 31,

Six months ended June 30,

($ in millions) 2026 2025

10 unchanged sentences

Total paid ( 18,581 ) ( 19,523 )

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

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

Net balance as of June 30 33,533 34,856

Balance as of June 30 $ 40,979 $ 44,141

(1) Recoverables comprises reinsurance and indemnification recoverables.

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

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

This expense included losses from catastrophes of $ 2.96 billion and $ 4.19 billion in the six months ended June 30, 2026 and 2025, respectively, net of recoverables.

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

4 unchanged sentences

2025 2026 2025

Three months ended March 31,

Three months ended June 30,

Auto $ ( 639 ) $ ( 415 ) $ ( 9 ) $ ( 16 ) $ ( 648 ) $ ( 431 )

Homeowners ( 28 ) 12 66 18 38 30

Other personal lines ( 54 ) 53 25 ( 7 ) ( 29 ) 46

Specialty lines ( 16 ) 28 ( 3 ) 2 ( 19 ) 30

Commercial lines ( 8 ) 7 ( 3 ) 2 ( 11 ) 9

Other business lines ( 6 ) ( 15 ) — — ( 6 ) ( 15 )

Brokered solutions and collateral protection ( 1 ) ( 10 ) — — ( 1 ) ( 10 )

Run-off Property-Liability

Total prior year reserve reestimates $ ( 692 ) $ ( 376 ) $ 51 $ 6 $ ( 641 ) $ ( 370 )

Six months ended June 30,

Auto $ ( 1,477 ) $ ( 653 ) $ ( 11 ) $ ( 27 ) $ ( 1,488 ) $ ( 680 )

Homeowners ( 126 ) 5 52 17 ( 74 ) 22

Specialty lines ( 70 ) 81 22 ( 5 ) ( 48 ) 76

Commercial lines ( 28 ) ( 24 ) — 5 ( 28 ) ( 19 )

Brokered solutions and collateral protection ( 7 ) ( 25 ) — — ( 7 ) ( 25 )

Run-off Property-Liability

Total prior year reserve reestimates

$ ( 1,708 ) $ ( 611 ) $ 63 $ ( 10 ) $ ( 1,645 ) $ ( 621 )

(1) Reserve releases are shown in parentheses.

(2) 2025 includes $ 60 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024.

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

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

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

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

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

32 www.allstate.com

During the second quarter of 2026, favorable auto severity, excluding catastrophes, reflected improved prior period loss development and better than expected claim outcomes.

Auto reserve releases for the second quarter of 2026 included $ 597 million related to auto injury coverages and $ 42 million related to other auto coverages.

Approximately 51 % of auto injury coverage reserve releases related to accident year 2025 and approximately 33 % to 2023 and 2024.

During the first six months of 2026, favorable auto severity, excluding catastrophes, reflected improved prior period loss development and better than expected claim outcomes.

Auto reserve releases for the first six months of 2026 included $ 1.27 billion related to auto injury coverages and $ 205 million related to other auto coverages.

Approximately 30 % of auto injury coverage reserve releases related to accident year 2025 and approximately 51 % to 2023 and 2024.

Second Quarter 2026 Form 10-Q 35

Notes to Condensed Consolidated Financial Statements

For the second quarter of 2026 and first six months of 2026, reserve releases in homeowners were primarily driven by favorable severity assumptions, offset by catastrophe reserve increases.

releases in specialty lines and commercial lines were primarily driven by favorable large loss experience in personal umbrella coverage and improved commercial auto injury severity.

Note 9 Reinsurance and Indemnification

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Property and casualty insurance premiums earned

3 unchanged sentences

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Property and casualty insurance claims and claims expense (2)

6 unchanged sentences

Reinsurance and indemnification recoverables, net

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

($ in millions) June 30, 2026 December 31, 2025

Property and casualty

5 unchanged sentences

Rollforward of credit loss allowance for reinsurance recoverables

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Property and casualty (1) (2)

5 unchanged sentences

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

36 www.allstate.com

Notes to Condensed Consolidated Financial Statements

Note 10 Company Restructuring

4 unchanged sentences

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

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

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

First Quarter 2026 Form 10-Q 33

Notes to Condensed Consolidated Financial Statements

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $ 7 million and $ 15 million during the three months ended June 30, 2026 and 2025, respectively, and $ 12 million and $ 31 million during the six months ended June 30, 2026 and 2025, respectively.

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

Restructuring activity during the period

4 unchanged sentences

Payments and non-cash charges ( 16 ) ( 1 ) ( 17 )

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

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

Restructuring liability as of June 30, 2026 $ 18 $ — $ 18

As of June 30, 2026, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $ 27 million for employee costs and $ 2 million for exit costs.

Note 11 Guarantees and Contingent Liabilities

9 unchanged sentences

Consequently, the maximum amount of the obligation under such indemnifications is not determinable.

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

Historically, the Company has not

made any material payments pursuant to these obligations.

In connection with the sales of Allstate Life Insurance Company of New York to Wilton Reassurance Company (“Wilton”) and Allstate Life Insurance Company and Allstate Assurance Company to Everlake US Holdings Company (“Everlake”) in 2021, AIC agreed to indemnify Wilton and AIC and Allstate Financial Insurance Holdings Corporation (collectively, the “Sellers”) agreed to indemnify Everlake.

1 unchanged sentence

Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company.

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

The aggregate liability balance related to all guarantees was immaterial as of June 30, 2026.

Regulation and compliance

1 unchanged sentence

states and Canadian provinces.

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

Second Quarter 2026 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agency and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, restrict the use of advanced technologies, non-traditional data sources, or large language models and otherwise expand overall regulation of insurance products and the insurance industry.

In addition, the Company is subject to laws and regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the SEC, the Financial Industry Regulatory Authority, the U.S.

5 unchanged sentences

Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred.

34 www.allstate.com

Notes to Condensed Consolidated Financial Statements

ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain.

The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain.

Legal and regulatory proceedings and inquiries

12 unchanged sentences

and the challenging legal environment faced by corporations and insurance companies.

The outcome of these matters may be affected by decisions, verdicts and settlements, and the timing of such decisions, verdicts and settlements, in other individual and class action lawsuits that involve the Company, other insurers or other entities and by other legal, governmental and regulatory actions that involve the Company, other insurers or other entities.

The outcome of these matters may be affected by decisions, verdicts and settlements, and the timing of such decisions, verdicts and settlements, in other

individual and class action lawsuits that involve the Company, other insurers or other entities and by other legal, governmental and regulatory actions that involve the Company, other insurers or other entities.

The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted.

15 unchanged sentences

Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual.

38 www.allstate.com

Notes to Condensed Consolidated Financial Statements

When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter.

6 unchanged sentences

There may be other disclosed matters for which a loss is probable or reasonably possible, but such an estimate is not possible.

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

First Quarter 2026 Form 10-Q 35

Notes to Condensed Consolidated Financial Statements

amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate.

Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate.

The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $ 51 million, pre-tax.

6 unchanged sentences

Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies.

Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted and in the Company’s judgment, a loss, in excess of amounts accrued, if any, is not probable.

Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and

“Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted and in the Company’s judgment, a loss, in excess of amounts accrued, if any, is not probable.

In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period.

6 unchanged sentences

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

and/or (b) the Company

allegedly does not pay sales tax, title fees, registration fees, and/or other specified fees or costs that are allegedly mandatory under policy language or state legal authority.

and/or (b) the Company allegedly does not pay sales tax, title fees, registration fees, and/or other specified fees or costs that are allegedly mandatory under policy language or state legal authority.

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

6 unchanged sentences

MIC General Insurance Corporation .

In January 2026, the Company satisfied the judgment in Simon v.

Holguin (Pierce County Superior Court, Wash., filed September 8, 2020), in which the Company defended its insured in a bodily injury lawsuit arising from an automobile accident.

On October 21, 2022, a jury returned a verdict against the insured.

The Company, on behalf of its insured, appealed the verdict to the Washington Court of Appeals, Division II, which affirmed the judgment on June 16, 2025.

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

On January 7, 2026, the Supreme Court denied the Company’s request to appeal the ruling of the Court of Appeals.

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

The Company is subject to a lawsuit brought by the Oklahoma Attorney General in Cleveland County, Oklahoma District Court in July 2026, which alleges that the Company’s homeowners insurance practices violate the Oklahoma Consumer Protection Act and the Oklahoma Racketeer-Influenced and Corrupt Organizations Act.

The suit seeks injunctive relief, restitution, disgorgement, statutory damages, civil penalties and attorneys' fees.

Other proceedings

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

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

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

Allstate Life

Second Quarter 2026 Form 10-Q 39

Notes to Condensed Consolidated Financial Statements

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

The plaintiffs seek damages and injunctive relief.

5 unchanged sentences

The lawsuits allege privacy and consumer protection claims and seek actual, statutory and punitive damages, restitution, injunctive relief and attorneys’ fees.

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

District Court for the Central District of California, Canchola, et al v.

The Company is subject to a class action lawsuit in the U.S.

District Court for the Central District of

California, Canchola, et al v.

Allstate Insurance Company , filed March 2023.

Plaintiffs generally allege

36 www.allstate.com

Notes to Condensed Consolidated Financial Statements

that Allstate owes them business expenses incurred in their operation of Allstate Exclusive Agencies under the California Labor Code because they were misclassified as independent contractors.

Plaintiffs generally allege that Allstate owes them business expenses incurred in their operation of Allstate Exclusive Agencies under the California Labor Code because they were misclassified as independent contractors.

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

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

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

ACP Re, Ltd., et al.

and Preferred Term Securities XXV, Ltd., et al.

v ACP Re, Ltd., et al.

are the holders of TruPS that were issued by companies subsequently acquired by a former National General affiliate.

ACP Re, Ltd., et al.

Plaintiffs are the holders of TruPS that were issued by companies subsequently acquired by a former National General affiliate.

Plaintiffs filed this lawsuit against National General and several other defendants, alleging that they are successors to the TruPS issuers and are responsible for repayment of the principal and interest owed under the TruPS.

3 unchanged sentences

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

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

7 unchanged sentences

Remeasurement (gains) losses ( 147 ) 1 ( 126 ) 77

Pension net cost $ 27 $ 83

Pension net (benefit) cost $ ( 139 ) $ 8 $ ( 112 ) $ 91

Postretirement benefits

4 unchanged sentences

Remeasurement of benefit obligation

1 ( 1 ) ( 1 ) 1

Remeasurement (gains) losses 1 ( 1 ) ( 1 ) 1

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

Postretirement net cost $ 3 $ 1 $ 2 $ 5

Pension and postretirement benefits

1 unchanged sentence

Remeasurement (gains) losses ( 146 ) — ( 127 ) 78

Total net cost $ 26 $ 87

Total net (benefit) cost $ ( 136 ) $ 9 $ ( 110 ) $ 96

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

Differences between expected and actual returns on plan assets affect remeasurement (gains) losses.

Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations.

40 www.allstate.com

Notes to Condensed Consolidated Financial Statements

investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations.

Pension and postretirement benefits remeasurement gains and losses

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

($ in millions) 2026 2025 2026 2025

4 unchanged sentences

Remeasurement (gains) losses $ ( 146 ) $ — $ ( 127 ) $ 78

First Quarter 2026 Form 10-Q 37

Notes to Condensed Consolidated Financial Statements

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

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

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

Remeasurement gains of $ 146 million for the second quarter of 2026 are primarily related to favorable asset performance compared to expected return on plan assets.

Remeasurement gains of $ 127 million in the first six months of 2026 are primarily related to favorable asset performance compared to expected return on plan assets and an increase in the liability discount rate.

For the second quarter of 2026, the actual return on plan assets was higher than the expected return

due to higher public equity valuations.

For the first six months of 2026, the actual return on plan assets was higher than the expected return due to higher public equity valuations, partially offset by lower fixed income valuations.

The weighted average discount rate used to measure the pension benefit obligation was 5.73 % on June 30, 2026 and March 31, 2026 and increased from 5.52 % at December 31, 2025 resulting in gains for the first six months of 2026.

Note 13 Supplemental Cash Flow Information

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

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

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

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

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

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

Non-cash investing activities include $ 18 million and $ 27 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, commercial mortgages and limited partnerships for the six months ended June 30, 2026 and 2025, respectively.

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

Non-cash financing activities include $ 38 million and $ 25 million related to the issuance of Allstate common shares for vested equity awards for the six months ended June 30, 2026 and 2025, respectively.

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

include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $ 44 million and $ 54 million for the six months ended June 30, 2026 and 2025, respectively.

Non-cash operating activities include $ 10 million and $ 30 million related to right-of-use assets obtained in exchange for lease obligations for the six months ended June 30, 2026 and 2025, respectively.

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

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

($ in millions) Three months ended March 31,

Second Quarter 2026 Form 10-Q 41

Notes to Condensed Consolidated Financial Statements

($ in millions) Six months ended June 30,

Cash flows from operating activities

2 unchanged sentences

Net change in short-term investments 442 327

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

Operating cash flow (used) provided ( 124 ) 123

Net change in cash ( 1 ) —

Net change in proceeds managed $ ( 125 ) $ 123

Net change in liabilities

1 unchanged sentence

Liabilities for collateral, end of period ( 2,059 ) ( 1,918 )

Operating cash flow provided $ 140 $ 96

Operating cash flow provided (used) $ 125 $ ( 123 )

Note 14 Other Comprehensive Income (Loss)

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

($ in millions) Three months ended March 31,

($ in millions) Three months ended June 30,

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

4 unchanged sentences

Unamortized pension and other postretirement prior service credit (1)

Discount rate for reserve for future policy benefits

— — — ( 24 ) 5 ( 19 )

Other comprehensive income (loss) $ 130 $ ( 31 ) $ 99 $ 575 $ ( 123 ) $ 452

Six months ended June 30,

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

Unrealized net holding gains and losses arising during the period, net of related offsets $ ( 534 ) $ 115 $ ( 419 ) $ 629 $ ( 138 ) $ 491

reclassification adjustment of realized capital gains and losses ( 55 ) 12 ( 43 ) ( 400 ) 84 ( 316 )

Unrealized net capital gains and losses ( 479 ) 103 ( 376 ) 1,029 ( 222 ) 807

Unrealized foreign currency translation adjustments ( 90 ) 19 ( 71 ) 49 ( 10 ) 39

Unamortized pension and other postretirement prior service credit (1)

( 1 ) — ( 1 ) — — —

Discount rate for reserve for future policy benefits

6 unchanged sentences

Results of Review of Interim Financial Information

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

We have reviewed the accompanying condensed consolidated statement of financial position of The Allstate Corporation and subsidiaries (the “Company”) as of June 30, 2026, the related condensed consolidated statements of operations, comprehensive income (loss) and shareholders’ equity for the three-month and six-month periods ended June 30, 2026 and 2025, and of cash flows for the six-month periods ended June 30, 2026 and 2025, and the related notes (collectively referred to as the “interim financial information”).

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

12 unchanged sentences

Chicago, Illinois

April 29, 2026

First Quarter 2026 Form 10-Q 39

August 5, 2026

Second Quarter 2026 Form 10-Q 43

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

What changed 10-Q

Item 1. Financial Statements