What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-05 compared with 2026-04-29 · 267 added, 228 removed, 708 unchanged (41% of the section changed)

18 unchanged sentences

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.

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

These conditions include U.S.

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

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

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

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

3 unchanged sentences

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

40 www.allstate.com

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

5 unchanged sentences

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

44 www.allstate.com

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

Consolidated net income applicable to common shareholders increased $1.16 billion to $3.24 billion in the second quarter of 2026 and increased $3.02 billion to $5.67 billion in the first six months of 2026 compared to the same periods of 2025, primarily due to higher underwriting income and valuation gains on equity investments.

Total revenue increased 11.8% to $18.60 billion in the second quarter of 2026 and increased 7.4% to $35.54 billion in the first six months of 2026 compared to the same periods of 2025, primarily due to higher auto and homeowners insurance policies in force and valuation gains on equity investments.

Net investment income increased $255 million to $1.01 billion in the second quarter of 2026 and increased $339 million to $1.95 billion in the first six months of 2026 compared to the same periods of 2025, primarily due to higher market-based and performance-based investment results.

Investments totaled $87.80 billion as of June 30, 2026, increasing from $83.24 billion as of December 31, 2025.

Allstate shareholders’ equity was $33.70 billion as of June 30, 2026, increasing from $30.61 billion as of December 31, 2025, primarily due to net income, partially offset by common share repurchases, dividends to shareholders and unrealized net capital losses.

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $123.38 as of June 30, 2026, an increase of 49.7% from $82.40 as of June 30, 2025, and an increase of 13.8% from $108.45 as of December 31, 2025.

Return on average Allstate common shareholders’ equity for the twelve months ended June 30, 2026, was 49.1%, an increase of 19.5 points from 29.6% for the twelve months ended June 30, 2025.

Second Quarter 2026 Form 10-Q 45

Property-Liability Operations

40 unchanged sentences

Underwriting results

Three months ended March 31,

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

($ in millions, except ratios) 2026 2025 2026 2025

2 unchanged sentences

Other revenue 568 504 1,112 992

Total revenue 15,486 14,850 30,832 29,365

Claims and claims expense (9,668) (10,084) (18,660) (20,744)

2 unchanged sentences

Restructuring and related charges

(6) (13) (7) (29)

Amortization of purchased intangibles (38) (46) (77) (92)

11 unchanged sentences

Expense ratio (2)

21.8 20.8 21.5 21.1

Combined ratio 86.6 91.1 84.3 94.2

7 unchanged sentences

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

First Quarter 2026 Form 10-Q 43

Second Quarter 2026 Form 10-Q 47

Segment Results Allstate Protection

1 unchanged sentence

Underwriting results

Three months ended March 31,

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

($ in millions) 2026 2025 2026 2025

2 unchanged sentences

Other revenue 568 504 1,112 992

Total revenue 15,486 14,850 30,832 29,365

Claims and claims expense (9,668) (10,082) (18,660) (20,739)

5 unchanged sentences

Catastrophe losses $ 1,722 $ 1,990 $ 2,962 $ 4,192

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 increased $723 million and increased $3.02 billion in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, primarily due to an increase in premiums earned, lower catastrophe losses and the benefit of prior year reserve releases, partially offset by higher expenses.

Underwriting income (loss)

Three months ended March 31,

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

($ in millions) 2026 2025 2026 2025

$ 1,606 $ 1,331 $ 3,335 $ 2,147

Other personal lines (1)

226 (76) 911 (527)

Specialty lines (1)

108 (11) 265 (76)

Commercial lines 13 (17) 34 (1)

Other business lines (2)

Brokered solutions and collateral protection (2)

Answer Financial 1 2 4 9

1 unchanged sentence

(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.

(2) Brokered solutions and collateral protection includes brokered property and casualty and life and annuity products, and lender-placed products.

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

2 unchanged sentences

Allstate Protection Segment Results

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

($ in millions)

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

3 unchanged sentences

Premiums written

Three months ended March 31,

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

($ in millions) 2026 2025 2026 2025

1 unchanged sentence

Homeowners 4,752 4,395 8,493 7,848

Other personal lines 768 729

Specialty lines 886 865 1,654 1,594

Commercial lines 121 100 233 194

Other business lines 154 173

Brokered solutions and collateral protection 100 154 254 327

Total premiums written $ 15,431 $ 15,047 $ 30,056 $ 29,344

Premiums earned

Three months ended March 31,

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

($ in millions) 2026 2025 2026 2025

1 unchanged sentence

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 premiums earned $ 14,918 $ 14,346 $ 29,720 $ 28,373

Policies in force

As of March 31,

As of June 30,

(In thousands)

1 unchanged sentence

Homeowners 7,819 7,596

Other personal lines 4,902 4,874

Specialty lines 4,945 4,885

Commercial lines 182 176

Total 38,897 37,900

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:

Auto insurance premiums written increased $39 million in the second quarter of 2026 compared to the second quarter of 2025 and increased $41 million in the first six months of 2026 compared to the first six months 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

• PIF increased 2.8% or 708 thousand to 25,951 thousand as of June 30, 2026 compared to June 30, 2025

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

Second Quarter 2026 Form 10-Q 49

Segment Results Allstate 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

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

2026 2025 Change 2026 2025 Change

New issued applications (in thousands)

3 unchanged sentences

Independent agency

745 685 8.8 1,487 1,371 8.5

Direct 797 708 12.6 1,645 1,465 12.3

1 unchanged sentence

Allstate brand average premium $ 819 $ 850 (3.6) % $ 826 $ 852 (3.1) %

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:

Homeowners insurance premiums written increased 8.1% or $357 million in the second quarter of 2026 compared to the second quarter of 2025 and increased 8.2% or $645 million in the first six months of 2026 compared to the first six months 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.

• In the six months ended June 30, 2026, rate increases of 4.9% were implemented resulting in a total estimated insurance premium impact of 1.3%, excluding the impact of changes in insured home replacement costs

• PIF increased 2.9% or 223 thousand to 7,819 thousand as of June 30, 2026 compared to June 30,

2025, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel

• Increased new issued applications in all channels

In Florida, we are not writing new homeowners business and completed the non-renewal of certain policies during the second quarter of 2026.

In California, we write a limited amount of new homeowners business through North Light Specialty Insurance Company, our excess and surplus lines carrier.

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

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

2026 2025 Change 2026 2025 Change

New issued applications (in thousands)

2 unchanged sentences

Independent agency 65 48 35.4 101 95 6.3

86 54 59.3 167 95 75.8

Total new issued applications 411 353 16.4 % 769 673 14.3 %

Allstate brand average premium $ 2,399 $ 2,267 5.8 % $ 2,382 $ 2,241 6.3 %

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.

Specialty lines premiums written increased 2.4% or $21 million in the second quarter of 2026 compared to the second quarter of 2025 and increased 3.8% or $60 million in the first six months of 2026 compared to the first six months 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.

In Florida, we are not writing new condominium business and we completed the non-renewal of certain policies during the second quarter of 2026.

Commercial lines premiums written increased 21.0% or $21 million in the second quarter of 2026 compared to the second quarter of 2025 and increased 20.1% or $39 million in the first six months of 2026

compared to the first six months of 2025, primarily due to an increase in new issued applications and higher average premiums from current offerings.

Brokered solutions and collateral protection premiums written decreased 35.1% or $54 million in the second quarter of 2026 compared to the second quarter of 2025 and decreased 22.3% or $73 million in the first six months of 2026 compared to the first six months of 2025, due to lower premiums from lender-placed agent business.

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.

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Allstate Protection Segment Results

Combined ratios

2 unchanged sentences

2026 2025 2026 2025 2026 2025

Three months ended March 31,

Three months ended June 30,

61.4 65.0 21.9 21.0 83.3 86.0

Homeowners 72.4 81.2 22.2 20.8 94.6 102.0

Other personal lines (1)

Specialty lines (1)

68.5 86.1 18.4 15.3 86.9 101.4

Commercial lines 71.0 84.6 16.9 31.7 87.9 116.3

Other business lines 35.9 49.7 26.5 26.0 62.4 75.7

Brokered solutions and collateral protection 45.8 38.4 18.1 28.7 63.9 67.1

Total 64.8 70.3 21.8 20.8 86.6 91.1

1 unchanged sentence

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.

Six months ended June 30,

Auto 61.0 67.1 21.6 21.5 82.6 88.6

Homeowners 67.0 86.4 22.1 20.7 89.1 107.1

Specialty lines (1)

66.2 88.6 17.7 16.4 83.9 105.0

Commercial lines 64.0 71.0 19.7 29.5 83.7 100.5

Brokered solutions and collateral protection 40.5 44.2 22.6 27.3 63.1 71.5

Total 62.8 73.1 21.5 21.1 84.3 94.2

Impact of amortization of purchased intangibles 0.3 0.3 0.3 0.3

Impact of restructuring and related charges — 0.1 — 0.1

(1) Expense ratio includes other revenue of $42 million and $86 million for the three and six months ended June 30, 2026, respectively, compared to $47 million and $91 million for the three and six months ended June 30, 2025, respectively, for fees on auto assigned risk policies.

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

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Allstate Protection Segment Results

Loss ratio Effect of catastrophe

2 unchanged sentences

2026 2025 2026 2025 2026 2025 2026 2025

Three months ended March 31,

Three months ended June 30,

Auto 61.4 65.0 2.2 2.2 (6.7) (4.5) (0.1) (0.2)

72.4 81.2 33.5 42.8 0.9 0.8 1.6 0.5

Other personal lines 63.9 91.2 11.1 16.7 (3.5) 6.2 3.1 (1.0)

Specialty lines 68.5 86.1 9.7 19.3 (2.3) 3.9 (0.4) 0.3

Commercial lines 71.0 84.6 0.9 1.9 (10.3) 8.6 (2.8) 1.9

Other business lines 35.9 49.7 7.7 24.3 (3.5) (8.9) — —

Brokered solutions and collateral protection 45.8 38.4 16.7 7.3 (0.7) (6.1) — —

Total 64.8 70.3 11.5 13.9 (4.3) (2.6) 0.3 —

(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.

Six months ended June 30,

Auto 61.0 67.1 1.6 2.2 (7.8) (3.6) (0.1) (0.2)

Homeowners 67.0 86.4 29.3 46.3 (0.9) 0.3 0.6 0.3

Specialty lines 66.2 88.6 10.4 18.0 (2.9) 5.0 1.4 (0.3)

Commercial lines 64.0 71.0 0.5 2.3 (13.5) (8.7) — 2.3

Brokered solutions and collateral protection 40.5 44.2 11.8 15.9 (2.2) (7.5) — —

Total 62.8 73.1 10.0 14.8 (5.6) (2.2) 0.2 —

(1) The ten-year average effect of total catastrophe losses on the total combined ratio was 13.5 points and 11.0 points in the second quarter and first six months of 2026, respectively.

(2) The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 43.5 points and 36.0 points in the second quarter and first six months of 2026, respectively.

Auto loss ratio decreased 3.6 points and decreased 6.1 points in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, driven by the benefit of prior year reserve releases, excluding catastrophes.

Estimated report

year 2026 incurred claim severity for Allstate brand increased compared to report year 2025 for major coverages, reflecting ongoing inflationary pressures, including rising medical costs and continued increases in attorney representation.

Second Quarter 2026 Form 10-Q 51

Segment Results Allstate Protection

Homeowners loss ratio decreased 8.8 points and decreased 19.4 points in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, primarily due to increased premiums earned and lower catastrophe losses.

Gross claim frequency, excluding catastrophes, increased in the second quarter and first six months of 2026 compared to the same periods of 2025.

Paid claim severity, excluding catastrophes, increased in the second quarter and first six months of 2026 compared to the same periods of 2025, 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.

Specialty lines loss ratio decreased 17.6 points and decreased 22.4 points in the second quarter and first six months of 2026, respectively, compared to the same periods 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 13.6 points in the second quarter of 2026 compared to the second quarter of 2025, primarily due to prior year reserve releases in the current year compared to prior year reserve strengthening in the prior year.

Commercial lines loss ratio decreased 7.0 points in the first six months of 2026 compared to the first six months of 2025, primarily due to lower losses, including the benefit of prior year reserve releases, partially offset by a decrease in premiums earned.

Brokered solutions and collateral protection loss ratio increased 7.4 points in the second quarter of 2026, compared to the second quarter of 2025, primarily due to lower premiums earned and higher catastrophe losses.

Brokered solutions and collateral protection loss ratio decreased 3.7 points in the first six months of 2026 compared to the first six months of 2025, primarily due to lower losses, partially offset by a decrease in premiums earned and lower prior year reserve releases.

Catastrophe losses decreased $268 million to $1.72 billion in the second quarter of 2026 compared to the second quarter of 2025.

Catastrophe losses decreased $1.23 billion to $2.96 billion in the first six months of 2026 compared to the first six months of 2025.

Results in 2025 included $1.11 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.

We are also exposed to man-made catastrophic events, such as wildfires, terrorism, civil unrest, or industrial accidents.

The nature and level of catastrophes in any period cannot be reliably predicted.

5 unchanged sentences

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

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Allstate Protection Segment Results

Catastrophe losses by the type of event

Three months ended March 31,

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

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

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

Wind/hail 41 $ 1,658 36 $ 2,026 63 $ 2,612 50 $ 3,162

3 unchanged sentences

Prior year aggregate reinsurance recoveries

(10) 7 (6) (60)

Current year aggregate reinsurance recoveries

Prior quarter reserve reestimates (17) (52) — —

Total catastrophe losses 45 $ 1,722 37 $ 1,990

53 $ 4,192 (2)

(1) Includes reinsurance recoveries.

(2) Gross losses before reinsurance recoverables and reinstatement premiums were $5.22 billion.

The Company is pursuing subrogation recoveries related to the January 2025 California wildfires.

No amounts have been recognized for these potential recoveries.

Any ultimate recovery is expected to primarily benefit the Company's reinsurers, with the Company's direct benefit principally related to reinsurance reinstatement premiums.

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.

As of June 30, 2026, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils was

approximately $3.2 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.

The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the second quarter and first six months of 2026 was $378 million and $686 million, respectively, compared to $305 million and $562 million in the second quarter and first six months of 2025.

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

15 unchanged sentences

(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

(2) Programs or contracts updated in the second quarter of 2026.

Florida Program Our 2026 Florida Program provides coverage for property policies of CKIC, CKI

and affiliated companies for Florida catastrophe events

Second Quarter 2026 Form 10-Q 53

Segment Results Allstate Protection

up to $934 million of property loss less a $30 million retention.

The Florida Program includes reinsurance agreements placed in the traditional market, Florida Hurricane Catastrophe Fund (“FHCF”) and the insurance-linked securities (“ILS”) market as follows:

• Contracts between $30 million and $85 million:

– First event coverage provides $55 million of reinsurance limit, with $25 million placed with traditional reinsurers and $30 million placed as a catastrophe bond, and is not eligible for reinstatement of limits

– Second event coverage is placed with traditional reinsurers, with $55 million of reinsurance limit

• Contracts between $85 million and $369 million:

– Provide $149 million of limits, 90% placed (totaling $134 million of placed limit) for qualifying losses to personal lines property in Florida caused by storms the National Hurricane Center declares to be hurricanes.

These contracts inure to the benefit of all other reinsurance and do not have reinstatement provisions

– Provide $150 million of limit placed with traditional reinsurers for a first event, with one automatic reinstatement of limits, with premium due.

A separate contract offsets the full amount of this reinstatement premium

• Contracts between $369 million and $719 million provide $350 million of limit placed as two catastrophe bonds and are not eligible for reinstatement of limits.

• Contracts between $719 million and $934 million provide $215 million of limit placed with traditional reinsurers for a first event, with one automatic reinstatement of limits, with additional premium due.

A separate contract offsets the full amount of this reinstatement premium.

National General Lender Services Standalone Program is placed in the traditional market and provides coverage for catastrophe events up to $350 million of loss less a $70 million retention, with

one automatic reinstatement of limits, with additional premium due.

The National General FHCF contract provides additional coverage for Florida hurricane events, for a combined coverage for such catastrophe events of $443 million of loss less a $63 million retention.

National General Flood Excess of Loss Reinsurance Contract provides $60 million of placed limits, subject to a $20 million retention, with one automatic reinstatement of limits, with additional premium due.

Prior year reserve reestimates, including catastrophes, decreased reserves by $641 million in the second quarter of 2026 and $1.65 billion in the first six months of 2026.

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 during 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.

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

Reserve 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.

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

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Allstate Protection Segment Results

percentage of reinsurance placed in each of its agreements.

Eligible losses inure to the benefit of the Aggregate covers.

• Contracts between $1.00 billion and $4.75 billion:

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

• Contracts between $4.75 billion and $6.75 billion:

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

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

• Contracts between $6.75 billion and $11.50 billion:

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

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

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

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

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

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

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

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

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

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

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

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

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

Prior year reserve reestimates

Three months ended March 31,

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

Prior year reserve

1 unchanged sentence

combined ratio (2)

Prior year reserve

reestimates (1)

combined ratio (2)

($ in millions, except ratios) 2026 2025 2026 2025 2026 2025 2026 2025

1 unchanged sentence

Homeowners 38 30 0.2 0.2 (74) 22 (0.3) 0.1

Other personal lines (29) 46 (0.2) 0.4

Specialty lines (19) 30 (0.1) 0.2 (48) 76 (0.2) 0.3

Commercial lines (11) 9 (0.1) 0.1 (28) (19) (0.1) (0.1)

Other business lines (6) (15) — (0.1)

Brokered solutions and collateral protection (1) (10) — (0.1) (7) (25) — (0.1)

Total Allstate Protection $ (641) $ (372) (4.3) (2.6) $ (1,645) $ (626) (5.6) (2.2)

1 unchanged sentence

(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.

Expense ratio increased 1.0 point and increased 0.4 points in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025 primarily due to higher advertising and legal expenses, partially offset by higher earned premium growth relative to costs.

Impact of specific costs and expenses on the expense ratio

Three months ended March 31,

($ in millions, except ratios) 2026 2025 Change

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

($ in millions, except ratios) 2026 2025 Change 2026 2025 Change

Amortization of DAC $ 1,840 $ 1,742 $ 98 $ 3,661 $ 3,474 $ 187

9 unchanged sentences

Other costs and expenses, net of other revenue

5.7 5.2 0.5 5.3 5.1 0.2

Subtotal 21.5 20.4 1.1 21.2 20.7 0.5

2 unchanged sentences

Total expense ratio 21.8 20.8 1.0 21.5 21.1 0.4

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Run-off Property-Liability Segment Results

Second Quarter 2026 Form 10-Q 55

Segment Results Run-off Property-Liability

Run-off Property-Liability Segment

Underwriting results

($ in millions) Three months ended March 31,

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

2026 2025 2026 2025

Claims and claims expense $ — $ (2) $ — $ (5)

1 unchanged sentence

Underwriting loss

$ — $ (3) $ (1) $ (7)

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

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

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

Asbestos claims

14 unchanged sentences

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

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

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

Direct excess commercial insurance

18 unchanged sentences

Net reserves $ 1,382 $ 1,432

First Quarter 2026 Form 10-Q 51

Segment Results Run-off Property-Liability

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Run-off Property-Liability Segment Results

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Case IBNR Case IBNR

8 unchanged sentences

Ceded 76 24 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.

(1) Approximately 57% and 66% of gross case reserves as of June 30, 2026 and December 31, 2025, respectively, are subject to settlement agreements that define and limit our obligations.

(2) Approximately 62% and 73% of ceded case reserves as of June 30, 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,

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

2026 2025 2026 2025

Direct excess commercial insurance

$ 24 $ 34 $ 46 $ 60

(9) (10) (18) (21)

Assumed reinsurance coverage

Ceded — (1) — (1)

Direct primary commercial insurance

(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.

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

(1) In the second quarter and first six months of 2026, 86% and 87% of payments related to settlement agreements, respectively, compared to 93% and 91% in the second quarter and first six months of 2025, respectively.

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

Total net reserves as of June 30, 2026, included $653 million or 47% of estimated IBNR reserves compared to $761 million or 53% of estimated IBNR reserves as of December 31, 2025.

Total gross payments were $36 million and $63 million for the second quarter and first six months of 2026, respectively, compared to $45 million and $78 million for the second quarter and first six months of 2025, respectively.

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.

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Protection Services Segment Results

Second Quarter 2026 Form 10-Q 57

Segment Results Protection Services

Protection Services Segment

Summarized financial information

($ in millions) Three months ended March 31,

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

2026 2025 2026 2025

Premiums written $ 769 $ 733 $ 1,496 $ 1,390

3 unchanged sentences

Net investment income 25 25 48 49

Total revenue 935 867 1,857 1,727

Costs and expenses

14 unchanged sentences

Protection Plans 168,703 162,315

165,210 161,503

Roadside 1,520 988

1 unchanged sentence

Identity Protection 2,719 2,669

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

Policies in force as of June 30 (in thousands) 176,543 169,669

(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

Premiums written increased 4.9% or $36 million in the second quarter of 2026 and increased 7.6% or $106 million in the first six months of 2026 compared to the same periods of 2025, primarily due to continued growth at Protection Plans.

Adjusted net income decreased 11.7% or $7 million in the second quarter of 2026 and decreased 13.0% or $15 million in the first six months of 2026 compared to the same periods of 2025, primarily reflecting lower margins on major appliances at Protection Plans.

PIF increased 4.1% or 7 million as of June 30, 2026 compared to June 30, 2025 due to growth at Protection Plans.

Other revenue increased 10.8% or $12 million in the second quarter of 2026 compared to the second quarter of 2025, primarily due to higher lead generation revenue at Arity.

Intersegment premiums and service fees decreased 9.6% or $7 million in the first six months of

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

Claims and claims expense increased 16.5% or $28 million in the second quarter of 2026 and increased 19.9% or $66 million in the first six months of 2026 compared to the same periods of 2025, primarily driven by increased loss costs at Protection Plans.

Amortization of DAC increased 8.5% or $28 million in the second quarter of 2026 and increased 9.0% or $58 million in the first six months of 2026 compared to the same periods of 2025, driven by growth at Protection Plans.

Operating costs and expenses increased 6.9% or $20 million in the second quarter of 2026 and increased 3.3% or $20 million in the first six months of 2026 compared to the same periods of 2025, primarily due to expenses related to growth at Protection Plans.

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Portfolio composition and strategy (1)

March 31, 2026

June 30, 2026

($ in millions) Property-Liability Protection Services

18 unchanged sentences

(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.

The fair value of equity securities held as of June 30, 2026, was $1.09 billion in excess of cost.

Equity securities include $2.88 billion of funds with underlying investments in fixed income and short-term securities as of June 30, 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.

Investments totaled $87.80 billion as of June 30, 2026, increasing from $83.24 billion as of December 31, 2025, primarily due to operating cash flows.

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

1 unchanged sentence

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

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

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 93% rated investment grade.

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

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

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

The following table reflects investments as of June 30, 2026 in private credit by investment type.

Private credit investments

As of March 31, 2026

As of June 30, 2026

($ in millions) Fixed income securities (1)

9 unchanged sentences

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.

Second Quarter 2026 Form 10-Q 59

Portfolio composition by investment strategy

March 31, 2026

June 30, 2026

($ in millions) Market-

16 unchanged sentences

Fair value as of

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

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

government and agencies $ 12,351 $ 18,133

11 unchanged sentences

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

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

As of June 30, 2026, 92.2% of the consolidated fixed income securities portfolio was rated investment

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

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

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

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

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

internally established thresholds.

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

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

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

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

March 31, 2026

June 30, 2026

NAIC 1 NAIC 2 NAIC 3

28 unchanged sentences

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

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

underlying residential mortgage loans.

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

RMBS primarily consists of a U.S.

3 unchanged sentences

Equity securities of $11.16 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.

Exchange traded and mutual funds that have fixed income and short-term securities as their underlying investments total $2.88 billion as of June 30, 2026.

Mortgage loans of $842 million comprise loans secured by first mortgages on developed commercial real estate of $548 million and residential mortgage loans of $294 million.

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

For further detail on our

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

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

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

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

For further detail on our mortgage loan portfolio, see Note 4 of the condensed consolidated financial statements.

Limited partnership interests include $7.09 billion of interests in private equity funds, $1.62 billion of interests in real estate funds and $256 million of interests in other funds as of June 30, 2026.

We have commitments to invest additional amounts in limited partnership interests totaling $3.07 billion as of June 30, 2026.

Other investments include $575 million of direct investments in real estate and $564 million of bank loans, net as of June 30, 2026.

We have commitments to invest additional amounts in bank loans totaling $172 million as of June 30, 2026.

Second Quarter 2026 Form 10-Q 61

Unrealized net capital gains (losses)

March 31, December 31,

June 30, December 31,

($ in millions) 2026 2025

10 unchanged sentences

Gross unrealized Fair

March 31, 2026

June 30, 2026

$ 4,422 $ 35 $ (27) $ 4,430

16 unchanged sentences

Total fixed income securities $ 60,902 $ 445 $ (538) $ 60,809

First Quarter 2026 Form 10-Q 57

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

23 unchanged sentences

Equity securities by sector

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

26 unchanged sentences

Total equity securities $ 10,071 $ 1,088 $ 11,159 $ 8,026 $ 372 $ 8,398

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Second Quarter 2026 Form 10-Q 63

Net investment income

Three months ended March 31,

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

($ in millions) 2026 2025 2026 2025

15 unchanged sentences

Investment income, before expense $ 1,092 $ 823 $ 2,102 $ 1,748

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.

Net investment income increased 33.8% or $255 million in the second quarter of 2026 and increased 21% or $339 million in the first six months of 2026 compared to the same periods of 2025, 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,

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

($ in millions) 2026 2025 2026 2025

3 unchanged sentences

Investee level expenses (1)

(16) (11) (28) (21)

Total performance-based income $ 239 $ 79 $ 446 $ 275

(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

Performance-based investment income increased $160 million in the second quarter of 2026 and increased 62.2% or $171 million in the first six months of 2026 compared to the same periods of 2025 primarily due to higher real estate and private equity valuation increases.

Income in the second quarter of 2026 was concentrated among a small number of investments, with the top 10 investments contributing approximately 88% of performance-based income, while the broader portfolio generated modest returns.

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

As a result, performance-based income in the second quarter of 2026 is primarily comprised of operating and market performance and results of our investments for the three months ended March 31, 2026, and may not reflect all economic conditions, including the effects of macroeconomic impacts referred to in the Highlights section of MD&A.

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

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 (1)

(18) (4) (25) (80)

Valuation change of equity investments - appreciation (decline):

5 unchanged sentences

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

Income tax benefit 85 73

Income tax (expense) benefit (226) 32 (141) 105

Net gains (losses) on investments and derivatives, after-tax $ 829 $ (112) $ 509 $ (388)

6 unchanged sentences

(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 on investments and derivatives in the second quarter and first six months of 2026 primarily related to valuation gains on equity investments.

These gains were slightly offset by losses on sales of fixed income securities in connection with ongoing portfolio management, net losses on valuation change and settlements of derivatives primarily related to interest rate futures used to manage duration, and credit losses.

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

Three months ended March 31,

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

($ in millions) 2026 2025 2026 2025

4 unchanged sentences

Total performance-based $ 23 $ 24 $ 8 $ (4)

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Second Quarter 2026 Form 10-Q 65

Capital Resources and Liquidity

2 unchanged sentences

Capital resources

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

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

Preferred stock, common stock, treasury stock, retained income and other shareholders’ equity items $ 33,891 $ 30,355

4 unchanged sentences

Ratio of debt to capital resources 18.2 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.

(1) Net of debt issuance costs of $49 million and $51 million as of June 30, 2026 and December 31, 2025, respectively .

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

In the six months ended June 30, 2026, we paid dividends of $541 million and $59 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.

4 unchanged sentences

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.

Common share repurchases On February 4, 2026, the Board of Directors authorized a common share repurchase program for $4.00 billion which must be completed by February 29, 2028.

As of June 30, 2026, there was $2.60 billion remaining on the $4.00 billion common share repurchase program.

During the first six months of 2026, we repurchased 8 million common shares, or 3.0% of total common shares outstanding at December 31, 2025, for $1.66 billion.

Common shareholder dividends On January 2, 2026 and April 1, 2026, we paid a common shareholder dividend of $1.00 and $1.08, respectively.

On May 22, 2026, we declared a common shareholder dividend of $1.08 payable on July 1, 2026.

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

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

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

The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies and are given equity credit up to a pre-determined

limit in our capital structure as determined by their respective methodologies.

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

4 unchanged sentences

We believe we have sufficient liquidity to meet these needs.

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

As of June 30, 2026, we held $28.47 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.

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

The maximum amount of

First Quarter 2026 Form 10-Q 61

The maximum amount of loans the Corporation will have outstanding to all its

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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.

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.

Parent company capital capacity At the parent holding company level, we have deployable assets totaling $9.45 billion as of June 30, 2026, primarily 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.

During the first six months of 2026, $4.00 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.

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

Additional resources to support liquidity are as follows:

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

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

This ratio was 13.9% as of June 30, 2026.

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

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

As of 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.

• As of June 30, 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.

We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 646 million shares of treasury stock as of June 30, 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.

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Second Quarter 2026 Form 10-Q 67

Forward-Looking Statements

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis