Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

The following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the condensed consolidated financial statements and related notes thereto found under Part I. Item 1. contained herein, and with the discussion, analysis, consolidated financial statements and notes thereto in Part I. Item 1. and Part II. Item 7. and Item 8. of The Allstate Corporation annual report on Form 10-K for 2024, filed February 24, 2025.

Further analysis of our insurance segments is provided in the Property-Liability Operations and Segment Results sections, including Allstate Protection, Run-off Property-Liability, Protection Services and Allstate Health and Benefits, of Management’s Discussion and Analysis (“MD&A”). The segments are consistent with the way in which the chief operating decision maker reviews financial performance and makes decisions about the allocation of resources.

Measuring segment profit or loss

The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments. We use these measures in our evaluation of results of operations to analyze profitability.

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), amortization of deferred policy acquisition costs (“DAC”), operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, as determined using accounting principles generally accepted in the United States of America (“GAAP”).

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

•			Net gains and losses on investments and derivatives
•			Pension and other postretirement remeasurement gains and losses
•			Amortization or impairment of purchased intangibles
•			Gain or loss on disposition
•			Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
•			Income tax expense or benefit on reconciling items

Macroeconomic impacts

Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, conflict in the Middle East, the

Russia/Ukraine conflict, supply chain disruptions and labor shortages.

Tariffs Beginning on April 2, 2025, the U.S. government announced additional tariffs on goods imported to the U.S. We regularly evaluate scenarios to understand the potential impact of tariffs on our businesses and incorporate estimates of the impact into our development of reserves for claims. The evolving and uncertain global trade environment makes it difficult to predict the full effect on our business. The following factors may impact operations at levels beyond what we are currently observing:

• 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 Allstate Dealer Services due to lower new vehicle sales

• Lower premiums written from reduced retail sales in Allstate Protection Plans

• Higher claims costs at Allstate Protection Plans

• Bad debt and credit allowance exposure in all businesses

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

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

Corporate strategy

Our strategy has two components: increase personal property-liability market share and expand protection offerings by leveraging the Allstate brand, customer base and capabilities.

Transformative Growth is about creating a business model, capabilities and culture that continually transform to better serve customers. This is done by providing affordable, simple and connected protection through multiple distribution methods. The ultimate objective is to enhance customer value to drive growth in all businesses.

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

• Improving customer value

• Expanding customer access

• Increasing sophistication and investment in customer acquisition

• Deploying new technology ecosystems

• Driving organizational transformation

Second Quarter 2025 Form 10-Q 45

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

Dispositions

On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits (“EVB”) business, reported in the Allstate Health and Benefits segment. We recorded a gain on the sale of $890 million or $643 million, after-tax in the second quarter of 2025.

On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to

sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business, reported in the Allstate Health and Benefits segment. The assets and liabilities of the business are classified as held for sale at June 30, 2025. The transaction closed on July 1, 2025, and we expect to record a gain on sale of approximately $500 million in the third quarter of 2025.

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

Highlights

			Q1						Q2

Consolidated net income applicable to common shareholders
($ in millions)

Consolidated net income applicable to common shareholders increased $1.78 billion to $2.08 billion in the second quarter of 2025 compared to the second quarter of 2024, primarily due to higher earned premium and a gain on sale of the employer voluntary benefits business. Consolidated net income applicable to common shareholders increased $1.16 billion to $2.65 billion in the first six months of 2025 compared to the same period of 2024, primarily due to higher earned premium and a gain on sale of the employer voluntary benefits business, partially offset by higher catastrophe losses.

Total revenues
($ in millions)

Total revenues increased $919 million to $16.63 billion and increased $2.11 billion to $33.09 billion in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to higher homeowners and auto insurance policies in force and premium rate increases.

Net investment income
($ in millions)

Net investment income increased $42 million to $754 million in the second quarter of 2025 and increased $132 million to $1.61 billion in the first six months of 2025 compared to the same periods of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results.

Financial highlights

Investments totaled $77.44 billion as of June 30, 2025, increasing from $72.61 billion as of December 31, 2024.

Allstate shareholders’ equity was $24.02 billion as of June 30, 2025, increasing from $21.44 billion as of

December 31, 2024, primarily due to net income and unrealized net capital gains on investments in 2025 compared to losses at December 31, 2024, partially offset by dividends to shareholders.

46 www.allstate.com

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $82.40 as of June 30, 2025, an increase of 32.6% from $62.14 as of June 30, 2024, and an increase of 13.9% from $72.35 as of December 31, 2024.

Return on average Allstate common shareholders’ equity for the twelve months ended June 30, 2025, was 29.6%, an increase of 10.3 points from 19.3% for the twelve months ended June 30, 2024. The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending June 30, 2025.

Summarized consolidated financial results

						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Revenues
Property and casualty insurance premiums						$	15,041					$	13,952					$	29,739					$	27,464
Accident and health insurance premiums and contract charges						235						474						722						952
Other revenue						747						679						1,509						1,348
Net investment income						754						712						1,608						1,476
Net gains (losses) on investments and derivatives						(144)						(103)						(493)						(267)
Total revenues						16,633						15,714						33,085						30,973
Costs and expenses
Property and casualty insurance claims and claims expense						(10,249)						(10,801)						(21,064)						(20,302)
Accident, health and other policy benefits						(188)						(291)						(521)						(587)
Amortization of deferred policy acquisition costs						(2,076)						(2,001)						(4,163)						(3,940)
Operating, restructuring and interest expenses						(2,250)						(2,130)						(4,611)						(4,122)
Pension and other postretirement remeasurement gains (losses)						—						9						(78)						11
Amortization of purchased intangibles						(57)						(70)						(116)						(139)
Total costs and expenses						(14,820)						(15,284)						(30,553)						(29,079)
Gain on disposition of operations						890						—						890						—
Income from operations before income tax expense						2,703						430						3,422						1,894
Income tax expense						(604)						(83)						(727)						(349)
Net income						2,099						347						2,695						1,545
Less: Net (loss) income attributable to noncontrolling interest						(10)						16						(9)						(4)
Net income attributable to Allstate						2,109						331						2,704						1,549
Preferred stock dividends						(30)						(30)						(59)						(59)
Net income applicable to common shareholders						$	2,079					$	301					$	2,645					$	1,490

Segment highlights

Allstate Protection underwriting income was $1.28 billion in the second quarter of 2025 compared to an underwriting loss of $142 million in the second quarter of 2024, due to increased premiums earned and lower losses, partially offset by higher expenses. Underwriting income totaled $1.65 billion in the first six months of 2025 compared to underwriting income of $761 million in the first six months of 2024, due to increased premiums earned, partially offset by higher catastrophe losses and expenses.

Catastrophe losses were $1.99 billion and $4.19 billion in the second quarter and first six months of 2025, respectively, compared to $2.12 billion and $2.85 billion in the second quarter and first six months of 2024, respectively.

Premiums written increased 5.4% to $15.05 billion and increased 6.9% to $29.34 billion in the second quarter and first six months of 2025, respectively,

compared to the same periods of 2024, reflecting higher homeowners and auto insurance policies in force and premium rate increases.

Protection Services adjusted net income was $60 million in the second quarter of 2025 compared to $55 million in the second quarter of 2024. Adjusted net income was $115 million the first six months of 2025 compared to $109 million in the six months of 2024. The increase in both periods was primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses at Arity.

Premiums and other revenue increased 13.4% to $806 million and increased 14.0% to $1.61 billion in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to growth at Allstate Protection Plans.

Allstate Health and Benefits adjusted net income decreased $54 million to $4 million in the second quarter of 2025 and decreased $80 million to $34

Second Quarter 2025 Form 10-Q 47

million in the first six months of 2025 compared to the same periods of 2024. Excluding the results of the employer voluntary benefits business sold on April 1, adjusted net income decreased $26 million to $4 million in the second quarter of 2025 and decreased $57 million to $12 million in the first six months of 2025 compared to the same periods of 2024. The declines were primarily due to increased benefit utilization in group health and individual health.

Premiums and contract charges decreased 50.4% to $235 million in the second quarter of 2025 and decreased 24.2% to $722 million in the first six months of 2025 compared to the same periods of 2024. Excluding the results of the employer voluntary benefits business sold on April 1, premiums and contract charges increased 3.1% to $235 million in the second quarter of 2025 and increased 4.6% to $479 million in the first six months of 2025 compared to the same periods of 2024. The increases were due to growth in individual health and group health.

Income taxes The effective tax rate is the ratio of income tax expense (benefit) divided by income (loss) from operations before income tax expense. For the six months ended June 30, 2025, we reported an effective tax rate of 21.2% based on total income tax expense of $727 million on total income from operations before income tax expense of $3.42 billion. The effective rate for the six months ended June 30, 2025, is higher than the federal statutory rate of 21%, primarily due to non-deductible goodwill arising from the sale of the employer voluntary benefits business, offset by tax benefits derived from tax credits, tax-exempt interest income and share-based payments.

For the six months ended June 30, 2024, we reported an effective tax rate of 18.4% based on a total income tax expense of $349 million on income from operations before income tax benefit of $1.89 billion. The effective tax rate for the six months ended 2024 was lower than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, shared-based payments and tax-exempt interest income.

Reconciliation of the statutory federal income tax rate to the effective income tax rate
						Three months ended June 30,																		Six months ended June 30,
($ in millions)						2025									2024									2025									2024
Income (loss) before income taxes						$	2,703								$	430								$	3,422								$	1,894
Statutory federal income tax rate on income from operations						$	568		21.0		%				$	90		20.9		%				$	719		21.0		%				$	398		21.0		%
Non-deductible goodwill (1)						52			1.9						—			—						52			1.5						—			—
State income taxes						25			0.9						14			3.3						28			0.8						19			1.0
Change in valuation allowance						3			0.1						(10)			(2.3)						2			0.1						(6)			(0.3)
Tax credits						(14)			(0.5)						(5)			(1.2)						(28)			(0.8)						(26)			(1.4)
Share-based payments						(10)			(0.4)						(2)			(0.5)						(20)			(0.6)						(14)			(0.7)
Tax-exempt income						(10)			(0.4)						(5)			(1.2)						(19)			(0.6)						(11)			(0.6)
Uncertain tax positions						(12)			(0.4)						—			—						(14)			(0.4)						—			—
Other						2			0.1						1			0.2						7			0.2						(11)			(0.6)
Effective income tax rate on income from operations						$	604		22.3		%				$	83		19.2		%				$	727		21.2		%				$	349		18.4		%

(1)The sale of the employer voluntary benefits business on April 1, 2025 resulted in the disposal of non-deductible goodwill.

On July 4, 2025, H.R. 1 was signed into law, making a number of changes to the U.S. tax code. The legislation makes many provisions permanent that were originally enacted under the 2017 Tax Cuts and Jobs Act, in addition to implementing new measures that directly affect corporate taxpayers. Key provisions include the permanent reinstatement of full and immediate expensing for domestic research and development expenditures, new limitations on the deductibility of corporate charitable contributions, and a substantial rollback of renewable energy tax credits, including transferability of certain energy-related credits, while at the same time expanding availability of tax incentives for affordable housing developments. Based on our current operations, we do not expect these changes to have a significant impact to our consolidated financial statements.

48 www.allstate.com

Property-Liability Operations

Property-Liability Operations

Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources.

We do not allocate Property-Liability investment income, net gains and losses on investments and derivatives, or assets to the Allstate Protection and Run-off Property-Liability segments. Management reviews assets at the Property-Liability level for decision-making purposes.

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

*•*Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates.

*•*Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned.

*•*Combined ratio: the sum of the loss ratio and the expense ratio.

We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned:

*•*Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense

*•*Effect of prior year reserve reestimates on combined ratio

*•*Effect of amortization of purchased intangibles on combined ratio

*•*Effect of restructuring and related charges on combined ratio

*•*Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment

Premium measures and statistics are used to analyze our premium trends and are calculated as follows:

*•*PIF: policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Lender-placed policies are excluded from policy counts because relationships are with the lenders.

*•*New issued applications: item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand.

*•*Average premium - gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line.

*•*Implemented rate changes: represents the impact in the locations (U.S. states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written.

Second Quarter 2025 Form 10-Q 49

Property-Liability Operations

Underwriting results
						Three months ended June 30,												Six months ended June 30,
($ in millions, except ratios)						2025						2024						2025						2024
Premiums written						$	15,047					$	14,279					$	29,344					$	27,462
Premiums earned						$	14,346					$	13,339					$	28,373					$	26,239
Other revenue						504						441						992						871
Claims and claims expense						(10,084)						(10,649)						(20,744)						(19,998)
Amortization of DAC						(1,742)						(1,673)						(3,474)						(3,281)
Other costs and expenses						(1,685)						(1,537)						(3,386)						(2,954)
Restructuring and related charges						(13)						(15)						(29)						(22)
Amortization of purchased intangibles						(46)						(51)						(92)						(102)
Underwriting income (loss)						$	1,280					$	(145)					$	1,640					$	753
Catastrophe losses
Catastrophe losses, excluding reserve reestimates						$	1,984					$	2,258					$	4,202					$	3,151
Catastrophe reserve reestimates (1)						6						(138)						(10)						(300)
Total catastrophe losses						$	1,990					$	2,120					$	4,192					$	2,851
Non-catastrophe reserve reestimates (1)						$	(376)					$	(64)					$	(611)					$	(53)
Prior year reserve reestimates (1)						(370)						(202)						(621)						(353)
GAAP operating ratios
Loss ratio						70.3						79.8						73.1						76.2
Expense ratio (2)						20.8						21.3						21.1						20.9
Combined ratio						91.1						101.1						94.2						97.1
Effect of catastrophe losses on combined ratio						13.9						15.9						14.8						10.9
Effect of prior year reserve reestimates on combined ratio						(2.6)						(1.5)						(2.2)						(1.4)
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio						—						(1.0)						—						(1.1)
Effect of restructuring and related charges on combined ratio						0.1						0.1						0.1						0.1
Effect of amortization of purchased intangibles on combined ratio						0.3						0.4						0.3						0.4
Effect of Run-off Property-Liability business on combined ratio						—						—						—						—

(1)Favorable reserve reestimates are shown in parentheses.

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

50 www.allstate.com

Allstate Protection Segment Results

Allstate Protection Segment

Underwriting results
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Premiums written						$	15,047					$	14,279					$	29,344					$	27,462
Premiums earned						$	14,346					$	13,339					$	28,373					$	26,239
Other revenue						504						441						992						871
Claims and claims expense						(10,082)						(10,647)						(20,739)						(19,992)
Amortization of DAC						(1,742)						(1,673)						(3,474)						(3,281)
Other costs and expenses						(1,684)						(1,536)						(3,384)						(2,952)
Restructuring and related charges						(13)						(15)						(29)						(22)
Amortization of purchased intangibles						(46)						(51)						(92)						(102)
Underwriting income (loss)						$	1,283					$	(142)					$	1,647					$	761
Catastrophe losses						$	1,990					$	2,120					$	4,192					$	2,851

Underwriting income was $1.28 billion in the second quarter of 2025 compared to underwriting loss of $142 million in the second quarter of 2024 due to increased premiums earned and lower losses, partially offset by higher expenses. Underwriting income increased 116% or $886 million in the first six months of 2025 compared to the first six months of 2024, due to increased premiums earned, partially offset by higher catastrophe losses and expenses.

Change in underwriting results from prior year period - three months ended
($ in millions)

Change in underwriting results from prior year period - six months ended
($ in millions)

Second Quarter 2025 Form 10-Q 51

Segment Results Allstate Protection

Underwriting income (loss)
																		Three months ended June 30,												Six months ended June 30,
($ in millions)																														2025						2024						2025						2024
Auto																														$	1,331					$	370					$	2,147					$	721
Homeowners																														(76)						(375)						(527)						189
Other personal lines																														(11)						(55)						(76)						(48)
Commercial lines																														(17)						(138)						(1)						(208)
Other business lines (1)																														54						52						95						100
Answer Financial																														2						4						9						7
Total																														$	1,283					$	(142)					$	1,647					$	761

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

Premium measures and statistics include PIF, new issued applications and average premiums to analyze our premium trends. Premiums written is the amount of premiums charged for policies issued during a reporting period. Premiums are considered earned and are included in the financial results on a pro-rata basis over the policy period. The portion of premiums written applicable to the unexpired term of the policies is recorded as unearned premiums on our Condensed Consolidated Statements of Financial Position.

Premiums written
																		Three months ended June 30,												Six months ended June 30,
($ in millions)																														2025						2024						2025						2024
Auto																														$	9,533					$	9,284					$	19,381					$	18,641
Homeowners																														4,395						3,845						7,848						6,719
Other personal lines																														865						845						1,594						1,505
Commercial lines																														100						150						194						307
Other business lines																														154						155						327						290
Total premiums written																														$	15,047					$	14,279					$	29,344					$	27,462

Premiums earned
																		Three months ended June 30,												Six months ended June 30,
($ in millions)																														2025						2024						2025						2024
Auto																														$	9,528					$	9,079					$	18,875					$	17,857
Homeowners																														3,771						3,255						7,428						6,409
Other personal lines																														779						701						1,520						1,360
Commercial lines																														104						158						217						327
Other business lines																														164						146						333						286
Total premiums earned																														$	14,346					$	13,339					$	28,373					$	26,239

Reconciliation of premiums written to premiums earned
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Total premiums written						$	15,047					$	14,279					$	29,344					$	27,462
(Increase) decrease in unearned premiums						(767)						(921)						(1,039)						(1,158)
Other						66						(19)						68						(65)
Total premiums earned						$	14,346					$	13,339					$	28,373					$	26,239

Policies in force
																		As of June 30,
(In thousands)																														2025						2024
Auto																														25,243						25,124
Homeowners																														7,596						7,426
Other personal lines																														4,885						4,871
Commercial lines																														176						256
Total																														37,900						37,677

52 www.allstate.com

Allstate Protection Segment Results

Auto insurance premiums written increased 2.7% or $249 million in the second quarter of 2025 compared to the second quarter of 2024 and 4.0% or $740 million in the first six months of 2025 compared to the first six months of 2024, primarily due to the following factors:

• Increase in Allstate brand average premiums driven by rate increases that have moderated as we focus on growth and continued rollout of Affordable, Simple and Connected auto product. In the six months ended June 30, 2025 rate increases of 4.2% were implemented in 46 locations, resulting in total insurance premium impact of 1.8%

• PIF increased 0.5% or 119 thousand to 25,243 thousand as of June 30, 2025 compared to June 30, 2024

• Increased new issued applications in all channels

• In locations not achieving acceptable returns, we expect to continue to pursue targeted rate increases. In states where we are achieving acceptable returns, we plan to implement rates that keep pace with increasing costs

Auto premium measures and statistics
						Three months ended June 30,																		Six months ended June 30,
						2025						2024						Change						2025						2024						Change
New issued applications (in thousands)
Allstate Protection by channel
Exclusive agency						764						628						21.7		%				1,512						1,233						22.6		%
Independent agency						685						562						21.9						1,371						1,117						22.7
Direct						708						538						31.6						1,465						1,048						39.8
Total new issued applications						2,157						1,728						24.8		%				4,348						3,398						28.0		%
Allstate brand average premium						$	850					$	841					1.1		%				$	852					$	832					2.4		%

Homeowners insurance premiums written increased 14.3% or $550 million in the second quarter of 2025 compared to the second quarter of 2024 and increased 16.8% or $1.13 billion in the first six months of 2025 compared to the first six months of 2024, primarily due to the following factors:

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

• In the six months ended June 30, 2025, rate increases of 6.9% were implemented in 36 locations, resulting in total estimated insurance premium impact of 2.9%, excluding the impact of changes in insured home replacement costs

• PIF increased 2.3% or 170 thousand to 7,596 thousand as of June 30, 2025 compared to June 30, 2024, primarily in the direct and exclusive agency

channels, partially offset in the independent agency channel

• Increased new issued applications in direct and exclusive agency channels

We are not writing new homeowners business in Florida. We are also non-renewing certain policies in Florida. 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.

As we improve underwriting margins to targeted levels through underwriting and rate actions, policy growth in the independent agency channel may be negatively impacted.

Homeowners premium measures and statistics
						Three months ended June 30,																		Six months ended June 30,
						2025						2024						Change						2025						2024						Change
New issued applications (in thousands)
Allstate Protection by channel
Exclusive agency						251						241						4.1		%				483						459						5.2		%
Independent agency						48						61						(21.3)						95						109						(12.8)
Direct						54						32						68.8						95						57						66.7
Total new issued applications						353						334						5.7		%				673						625						7.7		%
Allstate brand average premium						$	2,267					$	1,993					13.7		%				$	2,241					$	1,957					14.5		%

Other personal lines premiums written increased 2.4% or $20 million in the second quarter of 2025 compared to the second quarter of 2024 and increased 5.9% or $89 million in the first six months of 2025 compared to the first six months of 2024, primarily due

to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers. We are not writing new condominium business in Florida, and we are non-renewing certain policies in Florida.

Second Quarter 2025 Form 10-Q 53

Segment Results Allstate Protection

Commercial lines premiums written decreased 33.3% or $50 million in the second quarter of 2025 compared to the second quarter of 2024 and decreased 36.8% or $113 million in the first six months of 2025 compared to the first six months of 2024, primarily due to the strategic decision for the Allstate brand to stop writing new business and non-renew policies. We are committed to offering comprehensive commercial products to customers through our exclusive agency, independent agency and direct channels, with solutions offered by the National General brand, NEXT Insurance and other brokered solutions.

Other business lines premiums written decreased 0.6% or $1 million in the second quarter of 2025 compared to the second quarter of 2024. Other business lines premiums written increased 12.8% or $37 million in the first six months of 2025 compared to the first six months of 2024, due to growth in the lender-placed 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.

Combined ratios
						Loss ratio												Expense ratio (2)												Combined ratio
						2025						2024						2025						2024						2025						2024
Three months ended June 30,
Auto						65.0						74.2						21.0						21.7						86.0						95.9
Homeowners						81.2						90.3						20.8						21.2						102.0						111.5
Other personal lines (1)						86.1						92.0						15.3						15.8						101.4						107.8
Commercial lines						84.6						158.8						31.7						28.5						116.3						187.3
Other business lines						38.4						49.3						28.7						15.1						67.1						64.4
Total						70.3						79.8						20.8						21.3						91.1						101.1
Impact of amortization of purchased intangibles																		0.3						0.4						0.3						0.4
Impact of restructuring and related charges																		0.1						0.1						0.1						0.1
Six months ended June 30,
Auto						67.1						74.8						21.5						21.2						88.6						96.0
Homeowners						86.4						75.6						20.7						21.5						107.1						97.1
Other personal lines (1)						88.6						88.9						16.4						14.6						105.0						103.5
Commercial lines						71.0						136.4						29.5						27.2						100.5						163.6
Other business lines						44.2						46.8						27.3						18.2						71.5						65.0
Total						73.1						76.2						21.1						20.9						94.2						97.1
Impact of amortization of purchased intangibles																		0.3						0.4						0.3						0.4
Impact of restructuring and related charges																		0.1						0.1						0.1						0.1

(1)Expense ratio includes other revenue of $47 million and $91 million for the three and six months ended June 30, 2025, respectively, compared to $26 million and $64 million for the three and six months ended June 30, 2024, respectively, for fees on auto assigned risk policies.

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

54 www.allstate.com

Allstate Protection Segment Results

Loss ratios
						Loss ratio												Effect of catastrophe losses (1) (2)												Effect of prior year reserve reestimates												Effect of catastrophe losses included in prior year reserve reestimates
						2025						2024						2025						2024						2025						2024						2025						2024
Three months ended June 30,
Auto						65.0						74.2						2.2						3.9						(4.5)						(2.0)						(0.2)						(0.1)
Homeowners						81.2						90.3						42.8						49.6						0.8						(5.8)						0.5						(3.9)
Other personal lines						86.1						92.0						19.3						17.3						3.9						8.7						0.3						0.2
Commercial lines						84.6						158.8						1.9						3.2						8.6						67.7						1.9						(1.2)
Other business lines						38.4						49.3						7.3						15.1						(6.1)						(0.7)						—						—
Total						70.3						79.8						13.9						15.9						(2.6)						(1.5)						—						(1.0)
Six months ended June 30,
Auto						67.1						74.8						2.2						2.6						(3.6)						(1.4)						(0.2)						(0.1)
Homeowners						86.4						75.6						46.3						33.9						0.3						(5.9)						0.3						(4.3)
Other personal lines						88.6						88.9						18.0						13.4						5.0						8.3						(0.3)						(0.1)
Commercial lines						71.0						136.4						2.3						1.8						(8.7)						48.3						2.3						(1.6)
Other business lines						44.2						46.8						15.9						10.1						(7.5)						1.4						—						—
Total						73.1						76.2						14.8						10.9						(2.2)						(1.4)						—						(1.1)

(1)The ten-year average effect of total catastrophe losses on the total combined ratio was 13.8 points and 11.2 points in the second quarter and first six months of 2025, respectively.

(2) The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 44.8 points and 37.1 points in the second quarter and first six months of 2025, respectively.

Auto loss ratio decreased 9.2 points and decreased 7.7 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024 driven by increased earned premiums, lower claim frequency and higher favorable non-catastrophe reserve reestimates. Estimated report year 2025 incurred claim severity for Allstate brand increased compared to report year 2024 for major coverages due to higher repair costs, mix of total loss frequency, medical consumption and attorney representation. Gross claim frequency decreased relative to the prior year. We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections and accelerating resolution of bodily injury claims.

Homeowners loss ratio decreased 9.1 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to increased premiums earned. Homeowners loss ratio increased 10.8 points in the first six months of 2025 compared to the first six months of 2024, primarily due to higher catastrophe losses, partially offset by increased premiums earned.

Gross claim frequency, excluding catastrophes, decreased in the second quarter and first six months of 2025 compared to the same periods of 2024. Paid claim severity, excluding catastrophes, increased in the second quarter and first six months of 2025 compared to the same periods of 2024 due to a mix of fire and wind/hail 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 5.9 points and decreased 0.3 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024 primarily due to increased

premiums earned, partially offset by higher catastrophe losses.

Commercial lines loss ratio decreased 74.2 points and 65.4 points in the second quarter and first six months of 2025, respectively, compared to the same periods of 2024, primarily due to lower losses, partially offset by a decrease in premiums earned driven by the strategic decision to exit an unprofitable business.

Other business lines loss ratio decreased 10.9 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to lower losses and increased premiums earned. Other business lines loss ratio decreased 2.6 points in the first six months of 2025 compared to the first six months of 2024, primarily due to higher favorable non-catastrophe reserve reestimates and increased premiums earned, partially offset by higher catastrophe losses.

Catastrophe losses decreased $130 million to $1.99 billion in the second quarter of 2025 compared to the second quarter of 2024. Catastrophe losses increased $1.34 billion to $4.19 billion in the first six months of 2025 compared to the first six months of 2024, primarily due to the California wildfires and larger losses per event from wind/hail 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,

Second Quarter 2025 Form 10-Q 55

Segment Results Allstate Protection

tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.

We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted.

Loss estimates are generally based on claim adjuster inspections and the application of historical loss development factors. Our loss estimates are calculated in accordance with the coverage provided by our policies. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting their ability to inspect losses, determining whether losses are covered by our homeowners policy

(generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period. In these situations, we may need to adapt our practices to accommodate these circumstances in order to determine a best estimate of our losses from a catastrophe.

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

Catastrophe losses by the type of event
						Three months ended June 30,																								Six months ended June 30,
($ in millions)						Number of events						2025						Number of events						2024						Number of events						2025						Number of events						2024
Tornadoes						—						$	—					1						$	53					—						$	—					1						$	53
Wind/hail						36						2,026						41						2,146						50						3,162						59						2,908
Wildfires						1						2						1						20						3						1,088						3						29
Freeze/other events						—						—						—						—						—						—						1						161
Prior year reserve reestimates (1)												(1)												(138)												50												(300)
Prior year aggregate reinsurance recoveries												7												—												(60)												—
Current year aggregate reinsurance recoveries												8												—												(48)												—
Prior quarter reserve reestimates												(52)												39												—												—
Total catastrophe losses						37						$	1,990					43						$	2,120					53						$	4,192		(2)			64						$	2,851

(1)Includes reinsurance recoveries.

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

Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide shareholders with long-term returns on the risks assumed in our property business, reduce earnings volatility, and provide protection to our customers. The current catastrophe reinsurance program supports our risk and return framework which incorporates robust economic capital modeling and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires. As of June 30, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.0 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.

During the second quarter of 2025, we placed one single-year term contract as part of our 2025-2026 Nationwide Excess Catastrophe Reinsurance Program, added a U.S. Homeowners Aggregate contract, and completed the placement of our 2025-2026 Florida

Excess Catastrophe Reinsurance Program (“Florida Program”), the National General Lender Services Standalone Program and the National General Flood Excess of Loss Reinsurance Contract.

2025-2026 Nationwide Excess Catastrophe Reinsurance Program updates include one single-year term contract providing $217 million of placed limit in excess of a $4.25 billion retention on a per occurrence basis.

U.S. Homeowners Aggregate A seven-month duration aggregate contract was placed with a risk period of June 1, 2025 to December 31, 2025. This contract provides $325 million of placed limit in excess of a $3.50 billion retention for US Homeowners catastrophe events, including the state of Florida.

Florida Program Our 2025 Florida Program provides coverage for property policies of Castle Key Insurance Company and certain affiliate companies for Florida catastrophe events up to $1.10 billion of loss less a $30 million retention. This includes coverage for events up to $951 million of loss less a $30 million

56 www.allstate.com

Allstate Protection Segment Results

retention on a first event occurrence, in addition to the Florida Hurricane Catastrophe Fund (“FHCF”) which provides a combined placed limit of $153 million.

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

• For qualifying losses to personal lines property in Florida caused by storms the National Hurricane Center declares to be hurricanes, the Florida Program has three mandatory FHCF inuring contracts providing $170 million of limits, 90% placed.

*•*Traditional market placements comprise reinsurance limits for losses to personal lines property in Florida arising out of multiple perils including those not covered by the FHCF contracts. One contract provides combined $405 million of placed limit with one automatic reinstatement of limits with premium due, while a separate contract provides coverage to partially offset these reinstatement premiums. An additional contract provides $66 million of reinsurance limit for a second event.

*•*ILS placements provide $516 million of placed limits for qualifying losses to personal lines property in Florida caused by a named storm event, a severe weather event, an earthquake event, a fire event, a volcanic eruption event, or a meteorite impact event.

National General Lender Services Standalone Program is placed in the traditional market and provides $410 million of placed limits, subject to a $90

million retention, with one automatic reinstatement of limits. Inuring contracts include the National General FHCF contract providing $130 million of limits in excess of a $73 million retention, 90% placed.

National General Flood Excess of Loss Reinsurance Contract provides $50 million of placed limits, subject to a $20 million retention, with one automatic reinstatement of limits.

For a complete summary of the 2025 reinsurance placement, please read this in conjunction with the discussion and analysis in Part I. Item 2. Management’s Discussion and Analysis - Allstate Protection Segment Results, Catastrophe Reinsurance of The Allstate Corporation Form 10-Q for the quarterly period ended March 31, 2025.

The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the second quarter and first six months of 2025 was $305 million and $562 million, respectively, compared to $296 million and $582 million in the second quarter and first six months of 2024. Catastrophe placement premiums reduce net written and earned premium with approximately 82% of the reduction related to homeowners premium.

Prior year reserve reestimates Favorable reserve reestimates, including catastrophes, were $372 million and $626 million in the second quarter and first six months of 2025, respectively, primarily due to favorable reserve reestimates in personal auto lines.

For a more detailed discussion on reinsurance and reserve reestimates, see Note 9 of the condensed consolidated financial statements.

Prior year reserve reestimates
						Three months ended June 30,																								Six months ended June 30,
						Prior year reserve reestimates (1)												Effect on combined ratio (2)												Prior year reserve reestimates (1)												Effect on combined ratio (2)
($ in millions, except ratios)						2025						2024						2025						2024						2025						2024						2025						2024
Auto						$	(431)					$	(180)					(3.0)						(1.3)						$	(680)					$	(254)					(2.4)						(1.0)
Homeowners						30						(191)						0.2						(1.4)						22						(380)						0.1						(1.4)
Other personal lines						30						61						0.2						0.4						76						113						0.3						0.4
Commercial lines						9						107						0.1						0.8						(19)						158						(0.1)						0.6
Other business lines						(10)						(1)						(0.1)						—						(25)						4						(0.1)						—
Total Allstate Protection						$	(372)					$	(204)					(2.6)						(1.5)						$	(626)					$	(359)					(2.2)						(1.4)

(1)Favorable reserve reestimates are shown in parentheses.

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

Second Quarter 2025 Form 10-Q 57

Segment Results Allstate Protection

Expense ratio decreased 0.5 points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to higher earned premium growth relative to costs. Expense ratio increased 0.2 points in the first six months of 2025 compared to the first six months of 2024, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to costs.

Impact of specific costs and expenses on the expense ratio
						Three months ended June 30,																		Six months ended June 30,
($ in millions, except ratios)						2025						2024						Change						2025						2024						Change
Amortization of DAC						$	1,742					$	1,673					$	69					$	3,474					$	3,281					$	193
Advertising expense						442						402						40						965						685						280
Other costs and expenses, net of other revenue						738						693						45						1,427						1,396						31
Amortization of purchased intangibles						46						51						(5)						92						102						(10)
Restructuring and related charges						13						15						(2)						29						22						7
Total underwriting expenses						$	2,981					$	2,834					$	147					$	5,987					$	5,486					$	501
Premiums earned						$	14,346					$	13,339					$	1,007					$	28,373					$	26,239					$	2,134
Expense ratio
Amortization of DAC						12.1						12.6						(0.5)						12.2						12.5						(0.3)
Advertising expense						3.1						3.0						0.1						3.4						2.6						0.8
Other costs and expenses, net of other revenue						5.2						5.2						—						5.1						5.3						(0.2)
Subtotal						20.4						20.8						(0.4)						20.7						20.4						0.3
Amortization of purchased intangibles						0.3						0.4						(0.1)						0.3						0.4						(0.1)
Restructuring and related charges						0.1						0.1						—						0.1						0.1						—
Total expense ratio						20.8						21.3						(0.5)						21.1						20.9						0.2

58 www.allstate.com

Run-off Property-Liability Segment Results

Run-off Property-Liability Segment

Underwriting results
($ in millions)						Three months ended June 30,												Six months ended June 30,
			2025						2024						2025						2024
Claims and claims expense						$	(2)					$	(2)					$	(5)					$	(6)
Operating costs and expenses						(1)						(1)						(2)						(2)
Underwriting loss						$	(3)					$	(3)					$	(7)					$	(8)

Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance
($ in millions)						June 30, 2025						December 31, 2024
Asbestos claims
Gross reserves						$	1,070					$	1,124
Reinsurance						(332)						(350)
Net reserves						738						774
Environmental claims
Gross reserves						303						320
Reinsurance						(58)						(61)
Net reserves						245						259
Other run-off claims
Gross reserves						407						439
Reinsurance						(30)						(58)
Net reserves						377						381
Total
Gross reserves						1,780						1,883
Reinsurance						(420)						(469)
Net reserves						$	1,360					$	1,414

Reserves by type of exposure before and after the effects of reinsurance
($ in millions)						June 30, 2025						December 31, 2024
Direct excess commercial insurance
Gross reserves						$	1,021					$	1,082
Reinsurance						(342)						(363)
Net reserves						679						719
Assumed reinsurance coverage
Gross reserves						566						581
Reinsurance						(52)						(54)
Net reserves						514						527
Direct primary commercial insurance
Gross reserves						106						133
Reinsurance						(25)						(51)
Net reserves						81						82
Unallocated loss adjustment expenses
Gross reserves						87						87
Reinsurance						(1)						(1)
Net reserves						86						86
Total
Gross reserves						1,780						1,883
Reinsurance						(420)						(469)
Net reserves						$	1,360					$	1,414

Second Quarter 2025 Form 10-Q 59

Segment Results Run-off Property-Liability

Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)
						June 30, 2025												December 31, 2024
						Case						IBNR						Case						IBNR
Direct excess commercial insurance
Gross reserves (1)						63		%				37		%				58		%				42		%
Ceded (2)						70						30						62						38
Assumed reinsurance coverage
Gross reserves						36						64						34						66
Ceded						54						46						51						49
Direct primary commercial insurance
Gross reserves						37						63						54						46
Ceded						74						26						87						13

(1)Approximately 66% and 65% of gross case reserves as of June 30, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.

(2)Approximately 73% and 72% of ceded case reserves as of June 30, 2025 and December 31, 2024, 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 June 30,												Six months ended June 30,
			2025						2024						2025						2024
Direct excess commercial insurance
Gross (1)						$	34					$	16					$	60					$	32
Ceded (2)						(10)						(7)						(21)						(13)
Assumed reinsurance coverage
Gross						10						21						16						27
Ceded						(1)						(2)						(1)						(2)
Direct primary commercial insurance
Gross						1						2						2						3
Ceded						(1)						(1)						(1)						(1)

(1)In the second quarter and first six months of 2025, 93% and 91% of payments related to settlement agreements, respectively, compared to 87% and 86% in the second quarter and first six months of 2024, respectively.

(2)In the second quarter and first six months of 2025, 94% and 93% of payments related to settlement agreements, respectively, compared to 96% and 93% in the second quarter and first six months of 2024, respectively.

Total net reserves as of June 30, 2025, included $666 million or 49% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.

Total gross payments were $45 million and $78 million for the second quarter and first six months of 2025, respectively, compared to $39 million and $62 million for the second quarter and first six months of 2024, 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 $10 million and $16 million for the second quarter and first six months of 2025, respectively, compared to $15 million and $26 million for the second quarter and first six months of 2024, respectively.

60 www.allstate.com

Protection Services Segment Results

Protection Services Segment

Summarized financial information
($ in millions)						Three months ended June 30,												Six months ended June 30,
			2025						2024						2025						2024
Premiums written						$	733					$	676					$	1,390					$	1,303
Revenues
Premiums						$	695					$	613					$	1,366					$	1,225
Other revenue						111						98						239						183
Intersegment insurance premiums and service fees (1)						36						39						73						74
Net investment income						25						23						49						44
Costs and expenses
Claims and claims expense						(170)						(157)						(331)						(315)
Amortization of DAC						(328)						(296)						(646)						(585)
Operating costs and expenses						(290)						(246)						(599)						(480)
Restructuring and related charges						(1)						—						(1)						(1)
Income tax expense on operations						(18)						(19)						(35)						(36)
Adjusted net income						$	60					$	55					$	115					$	109
Allstate Protection Plans						$	51					$	41					$	96					$	81
Allstate Dealer Services						4						6						8						12
Allstate Roadside						11						8						22						19
Arity						(8)						(2)						(14)						(6)
Allstate Identity Protection						2						2						3						3
Adjusted net income						$	60					$	55					$	115					$	109
Policies in force
Allstate Protection Plans																		162,315						151,172
Allstate Dealer Services																		3,697						3,733
Allstate Roadside																		988						604
Allstate Identity Protection																		2,669						2,510
Policies in force as of June 30 (in thousands)																		169,669						158,019

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

Premiums written increased 8.4% or $57 million in the second quarter of 2025 and increased 6.7% or $87 million in the first six months of 2025 compared to the same periods of 2024, primarily due to international growth at Allstate Protection Plans.

Adjusted net income increased 9.1% or $5 million in the second quarter of 2025 and increased 5.5% or $6 million in the first six months of 2025 compared to the same periods of 2024, primarily due to premium growth at Allstate Protection Plans, partially offset by higher expenses at Arity.

PIF increased 7.4% or 12 million as of June 30, 2025 compared to June 30, 2024 due to growth at Allstate Protection Plans.

Other revenue increased 13.3% or $13 million in the second quarter of 2025 and increased 30.6% or $56 million in the first six months of 2025 compared to the same periods of 2024, primarily due to higher lead generation revenue at Arity.

Intersegment premiums and service fees decreased 7.7% or $3 million in the second quarter of

2025 and decreased 1.4% or $1 million in the first six months of 2025 compared to the same periods of 2024, primarily driven by Allstate Roadside.

Claims and claims expense increased 8.3% or $13 million in the second quarter of 2025 and increased 5.1% or $16 million in the first six months of 2025 compared to the same periods of 2024, primarily driven by growth at Allstate Protection Plans and increased severity at Dealer Services.

Amortization of DAC increased 10.8% or $32 million in the second quarter of 2025 and increased 10.4% or $61 million in the first six months of 2025 compared to the same periods of 2024, driven by growth at Allstate Protection Plans.

Operating costs and expenses increased 17.9% or $44 million in the second quarter of 2025 and increased 24.8% or $119 million in the first six months of 2025 compared to the same periods of 2024, primarily due to expenses related to growth at Allstate Protection Plans and Arity.

Second Quarter 2025 Form 10-Q 61

Segment Results Allstate Health and Benefits

Allstate Health and Benefits Segment

On April 1, 2025, we closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits business, to StanCorp Financial Group, Inc. We recorded a gain on the sale of $890 million or $643 million, after-tax in the second quarter of 2025. Starting in the second quarter of 2025, this segment excludes the employer voluntary benefits results and financial results will not be comparable between periods.

On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business. The assets and liabilities of the business are classified as held for sale at June 30, 2025. The transaction closed on July 1, 2025, and we expect to record a gain on the sale of approximately $500 million in the third quarter of 2025.

Starting in the third quarter of 2025, the retained individual health business that was included in the Allstate Health and Benefits segment will no longer be a reportable segment.

Goodwill A goodwill impairment test performed for the retained individual health business in the first quarter of 2025 resulted in an excess of fair value over carrying amount of less than 10%. Consequently, a goodwill impairment test was also performed in the second quarter of 2025 for this business which did not result in an impairment of goodwill. As of June 30, 2025, the individual health reporting unit had goodwill of $44 million. Estimating fair value is a subjective process that involves the use of significant estimates by management. Market declines and other events impacting the fair value, including discount rates, operating results, investment returns and strategies and growth rate assumptions or increases in the level of equity required to support the business could result in goodwill impairment.

Summarized financial information
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Revenues
Accident and health insurance premiums and contract charges						$	235					$	474					$	722					$	952
Other revenue						109						121						240						255
Net investment income						5						25						30						48
Costs and expenses
Accident, health and other policy benefits						(188)						(291)						(521)						(587)
Amortization of DAC						(6)						(32)						(43)						(74)
Operating costs and expenses						(149)						(224)						(383)						(449)
Restructuring and related charges						(1)						—						(1)						(1)
Income tax expense on operations						(1)						(15)						(10)						(30)
Adjusted net income						$	4					$	58					$	34					$	114
Employer voluntary benefits (1)						$	—					$	28					$	22					$	45
Group health (2)						9						28						21						56
Individual health (3)						(5)						2						(9)						13
Adjusted net income						$	4					$	58					$	34					$	114
Policies in force
Employer voluntary benefits (1)																		—						3,577
Group health (2)																		136						148
Individual health (3)																		482						456
Policies in force as of June 30 (in thousands)																		618						4,181

(1)Employer voluntary benefits included supplemental life and health products offered through workplace enrollment.

(2)Group health includes health products and administrative services sold to employers.

(3)Individual health includes short-term medical and other health products sold directly to individuals.

Premiums and contract charges decreased 50.4% or $239 million in the second quarter of 2025 and decreased 24.2% or $230 million in the first six months of 2025 compared to the same periods of 2024. Excluding the results of the EVB business sold on April 1, premiums and contract charges increased 3.1% or $7 million in the second quarter of 2025 and increased 4.6% or $21 million in the first six months of 2025 compared to the same periods of 2024 due to growth in individual health and group health. Starting in the second quarter of 2025, we significantly reduced the sale of new Medicare supplement products in individual health.

62 www.allstate.com

Allstate Health and Benefits Segment Results

Premiums and contract charges
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Employer voluntary benefits						$	—					$	246					$	243					$	494
Group health						123						120						247						238
Individual health						112						108						232						220
Premiums and contract charges						$	235					$	474					$	722					$	952

Adjusted net income decreased 93.1% or $54 million in the second quarter of 2025 and decreased 70.2% or $80 million in the first six months of 2025 compared to the same periods of 2024. Excluding the results of the EVB business sold on April 1, adjusted net income decreased 86.7% or $26 million in the second quarter of 2025 and decreased 82.6% or $57 million in the first six months of 2025 compared to the same periods of 2024, due to increased benefit utilization in group health and individual health.

Other revenue decreased 9.9% or $12 million in the second quarter of 2025 and decreased 5.9% or $15 million in the first six months of 2025 compared to the same periods of 2024, primarily due to lower third-party commission revenues for the individual health business.

Accident, health and other policy benefits decreased 35.4% or $103 million in the second quarter

of 2025 and decreased 11.2% or $66 million in the first six months of 2025 compared to the same periods of 2024. Excluding the results of the EVB business sold on April 1, accident, health and other policy benefits increased 20.5% or $32 million in the second quarter of 2025 and increased 23.5% or $74 million in the first six months of 2025 compared to the same periods of 2024, due to higher benefit utilization in group health and individual health.

Amortization of DAC decreased 81.3% or $26 million in the second quarter of 2025 and decreased 41.9% or $31 million in the first six months of 2025 compared to the same periods of 2024. Excluding the results of the EVB business sold on April 1, amortization of DAC is flat in the second quarter of 2025 and decreased 7.14% or $1 million in the first six months of 2025 compared to the same periods of 2024.

Operating costs and expenses
($ in millions)						Employer voluntary benefits						Group health						Individual health						Total
Three months ended June 30, 2025
Non-deferrable commissions						$	—					$	27					$	22					$	49
Operating costs and expenses						—						46						54						100
Total						$	—					$	73					$	76					$	149
Three months ended June 30, 2024
Non-deferrable commissions						$	21					$	27					$	38					$	86
Operating costs and expenses						51						42						45						138
Total						$	72					$	69					$	83					$	224
Six months ended June 30, 2025
Non-deferrable commissions						$	22					$	54					$	53					$	129
Operating costs and expenses						51						88						115						254
Total						$	73					$	142					$	168					$	383
Six months ended June 30, 2024
Non-deferrable commissions						$	44					$	53					$	80					$	177
Operating costs and expenses						102						84						86						272
Total						$	146					$	137					$	166					$	449

Operating costs and expenses decreased 33.5% or $75 million in the second quarter of 2025 and decreased 14.7% or $66 million in the first six months of 2025 compared to the same periods of 2024. Excluding the results of the EVB business sold on April 1, operating costs and expenses decreased 2.0% or $3 million in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a decrease in non-deferrable commissions in individual health, partially offset by higher administrative costs. Excluding the results of the EVB business sold on April 1, operating costs and expenses increased 2.3% or $7 million in the first six months of 2025 compared to the first six months of 2024 primarily due to higher administrative costs, partially offset by lower non-deferrable commissions in individual health.

Second Quarter 2025 Form 10-Q 63

Investments

Investments

Portfolio composition and strategy by reportable segment (1)
						June 30, 2025
($ in millions)						Property-Liability						Protection Services						Allstate Health and Benefits (5)						Corporate and Other						Total
Fixed income securities (2)						$	49,247					$	1,952					$	175					$	3,061					$	54,435
Equity securities (3)						1,733						208						—						456						2,397
Mortgage loans, net						807						—						—						—						807
Limited partnership interests						9,186						—						—						8						9,194
Short-term investments (4)						8,894						219						66						461						9,640
Other investments, net						964						—						—						—						964
Total						$	70,831					$	2,379					$	241					$	3,986					$	77,437
Percent to total						91.5		%				3.1		%				0.3		%				5.1		%				100.0		%
Market-based						$	60,758					$	2,379					$	241					$	3,679					$	67,057
Performance-based						10,073						—						—						307						10,380
Total						$	70,831					$	2,379					$	241					$	3,986					$	77,437

(1) Balances reflect the elimination of related-party investments between segments.

(2) Fixed income securities are carried at fair value. Amortized cost, net for these securities was $49.20 billion, $1.95 billion, $176 million, $3.06 billion and $54.38 billion for Property-Liability, Protection Services, Allstate Health and Benefits, Corporate and Other, and in total, respectively.

(3) Equity securities are carried at fair value. The fair value of equity securities held as of June 30, 2025, was $226 million in excess of cost. These net gains were primarily concentrated in the technology, banking and communications sectors. Equity securities include $896 million of funds with underlying investments in fixed income securities as of June 30, 2025.

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

(5) As of June 30, 2025, $320 million of investments are classified as held for sale.

Investments totaled $77.44 billion as of June 30, 2025, increasing from $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows.

Portfolio composition by investment strategy We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects. As strategies and market conditions evolve, the asset allocation may change.

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

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

market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate with a majority being limited partnerships. These investments include investee level expenses, reflecting asset level operating expenses on directly held real estate and other consolidated investments.

Macroeconomic impacts We regularly assess the macroeconomic environment through our integrated Enterprise Risk and Return Management framework. In the second quarter of 2025, we lowered the allocation of enterprise economic capital to the investment portfolio and implemented a balanced risk reduction strategy. Actions included reducing public equity securities and high yield bonds and shortening the fixed income portfolio duration.

64 www.allstate.com

Investments

Portfolio composition by investment strategy
						June 30, 2025
($ in millions)						Market- based						Performance-based						Total
Fixed income securities						$	54,295					$	140					$	54,435
Equity securities						1,786						611						2,397
Mortgage loans, net						807						—						807
Limited partnership interests						211						8,983						9,194
Short-term investments						9,639						1						9,640
Other investments, net						319						645						964
Total						$	67,057					$	10,380					$	77,437
Percent to total						86.6		%				13.4		%				100.0		%
Unrealized net capital gains and losses
Fixed income securities						$	52					$	—					$	52
Short-term investments						(2)						—						(2)
Other investments						(2)						—						(2)
Total						$	48					$	—					$	48

Fixed income securities

Fixed income securities by type
						Fair value as of
($ in millions)						June 30, 2025						December 31, 2024
U.S. government and agencies						$	15,712					$	11,108
Municipal						7,286						8,842
Corporate						27,962						30,192
Foreign government						1,391						1,364
Asset-backed securities (“ABS”)						983						1,145
Mortgage-backed securities (MBS”)						1,101						96
Total fixed income securities						$	54,435					$	52,747

Fixed income securities are rated by third-party credit rating agencies or are internally rated. The Securities Valuation Office (“SVO”) of the National Association of Insurance Commissioners (“NAIC”) evaluates the fixed income securities of insurers for regulatory reporting and capital assessment purposes. The NAIC assigns securities to one of six credit quality categories defined as “NAIC designations”. In general, securities with NAIC designations of 1 and 2 are considered investment grade and securities with NAIC designations of 3 through 6 are considered below investment grade. The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings or a comparable internal rating.

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

As of June 30, 2025, 92.3% of the consolidated fixed income securities portfolio was rated investment grade. Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds.

Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Our initial investment decisions and ongoing monitoring procedures for fixed income securities are based on a due diligence process which includes, but is not limited to, an assessment of the credit quality, sector, structure and liquidity risks of each issuer.

Fixed income portfolio monitoring is a comprehensive process to identify and evaluate each fixed income security that may require a credit loss allowance. The process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. For further detail on our fixed income portfolio monitoring process, see Note 5 of the condensed consolidated financial statements.

Second Quarter 2025 Form 10-Q 65

Investments

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

Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating
						June 30, 2025
						NAIC 1												NAIC 2												NAIC 3
						A and above												BBB												BB
($ in millions)						Fair value						Unrealized gain (loss)						Fair value						Unrealized gain (loss)						Fair value						Unrealized gain (loss)
U.S. government and agencies						$	15,712					$	72					$	—					$	—					$	—					$	—
Municipal						7,182						(163)						102						(4)						—						—
Corporate
Public						5,581						68						12,769						7						547						(22)
Privately placed						1,931						14						3,580						13						2,007						19
Total corporate						7,512						82						16,349						20						2,554						(3)
Foreign government						1,391						6						—						—						—						—
ABS						882						(1)						24						—						26						—
MBS						1,101						16						—						—						—						—
Total fixed income securities						$	33,780					$	12					$	16,475					$	16					$	2,580					$	(3)
						NAIC 4												NAIC 5-6												Total
						B												CCC and lower
						Fair value						Unrealized gain (loss)						Fair value						Unrealized gain (loss)						Fair value						Unrealized gain (loss)
U.S. government and agencies						$	—					$	—					$	—					$	—					$	15,712					$	72
Municipal						—						—						2						2						7,286						(165)
Corporate
Public						109						1						—						—						19,006						54
Privately placed						1,338						14						100						(1)						8,956						59
Total corporate						1,447						15						100						(1)						27,962						113
Foreign government						—						—						—						—						1,391						6
ABS						1						—						50						11						983						10
MBS						—						—						—						—						1,101						16
Total fixed income securities						$	1,448					$	15					$	152					$	12					$	54,435					$	52

Municipal bonds, including tax-exempt and taxable securities, include general obligations of state and local issuers and revenue bonds.

Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by public entities in unregistered form.

ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance.

MBS includes residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). RMBS is subject to interest rate risk, but unlike other fixed income securities, is additionally subject to prepayment risk from the underlying residential mortgage loans. RMBS primarily consists of a U.S. Agency portfolio having collateral issued or guaranteed by U.S. government agencies. CMBS investments are primarily traditional conduit transactions collateralized by commercial mortgage

loans, broadly diversified across property types and geographical area.

Equity securities of $2.40 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and REITs. Exchange traded and mutual funds that have fixed income securities as their underlying investments total $896 million as of June 30, 2025.

Mortgage loans of $807 million comprise loans secured by first mortgages on developed commercial real estate of $695 million and residential mortgage loans of $112 million. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 5 of the condensed consolidated financial statements.

Limited partnership interests include $7.58 billion of interests in private equity funds, $1.41 billion of interests in real estate funds and $211 million of interests in other funds as of June 30, 2025. We have commitments to invest additional amounts in limited partnership interests totaling $3.42 billion as of June 30, 2025.

Other investments include $335 million of bank loans, net and $628 million of direct investments in real estate as of June 30, 2025.

66 www.allstate.com

Investments

Unrealized net capital gains (losses)
						June 30,						December 31,
($ in millions)						2025						2024
U.S. government and agencies						$	72					$	(315)
Municipal						(165)						(143)
Corporate						113						(438)
Foreign government						6						12
ABS						10						15
MBS						16						—
Fixed income securities						52						(869)
Short-term investments						(2)						(2)
Derivatives						(2)						(2)
Investments classified as held for sale						1						(110)
Unrealized net capital gains and losses, pre-tax						$	49					$	(983)

Gross unrealized gains (losses) on fixed income securities by type and sector
($ in millions)						Amortized cost, net						Gross unrealized												Fair value
			Gains						Losses
June 30, 2025
Corporate
Banking						$	3,881					$	72					$	(24)					$	3,929
Basic industry						908						11						(11)						908
Capital goods						2,539						50						(33)						2,556
Communications						2,152						35						(43)						2,144
Consumer goods (cyclical and non-cyclical)						5,952						95						(72)						5,975
Energy						2,477						42						(24)						2,495
Financial services						2,172						33						(30)						2,175
Technology						2,721						39						(51)						2,709
Transportation						724						11						(8)						727
Utilities						3,936						79						(47)						3,968
Other						387						3						(14)						376
Total corporate fixed income portfolio						27,849						470						(357)						27,962
U.S. government and agencies						15,640						86						(14)						15,712
Municipal						7,451						29						(194)						7,286
Foreign government						1,385						18						(12)						1,391
ABS						973						14						(4)						983
MBS						1,085						16						—						1,101
Total fixed income securities						$	54,383					$	633					$	(581)					$	54,435

December 31, 2024
Corporate
Banking						$	4,194					$	38					$	(63)					$	4,169
Basic industry						833						6						(21)						818
Capital goods						2,706						25						(62)						2,669
Communications						2,364						16						(73)						2,307
Consumer goods (cyclical and non-cyclical)						6,674						51						(165)						6,560
Energy						2,771						32						(50)						2,753
Financial services						2,104						17						(53)						2,068
Technology						2,613						18						(94)						2,537
Transportation						815						7						(19)						803
Utilities						5,125						56						(89)						5,092
Other						431						6						(21)						416
Total corporate fixed income portfolio						30,630						272						(710)						30,192
U.S. government and agencies						11,423						15						(330)						11,108
Municipal						8,985						33						(176)						8,842
Foreign government						1,352						22						(10)						1,364
ABS						1,130						19						(4)						1,145
MBS						96						—						—						96
Total fixed income securities						$	53,616					$	361					$	(1,230)					$	52,747

Second Quarter 2025 Form 10-Q 67

Investments

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

Equity securities by sector
						June 30, 2025																		December 31, 2024
($ in millions)						Cost						Over (under) cost						Fair value						Cost						Over (under) cost						Fair value
Banking						$	34					$	41					$	75					$	119					$	41					$	160
Basic industry						12						3						15						39						(2)						37
Capital goods						72						3						75						201						(23)						178
Communications						46						37						83						142						25						167
Consumer goods						87						(8)						79						462						(25)						437
Energy						37						5						42						88						1						89
Financial services						225						15						240						332						6						338
Funds
Equities						352						25						377						1,077						22						1,099
Fixed income						896						—						896						764						(14)						750
Other						77						3						80						75						(2)						73
Total funds						1,325						28						1,353						1,916						6						1,922
REITs						102						25						127						159						17						176
Technology						160						71						231						746						88						834
Transportation						8						3						11						27						1						28
Utilities						58						5						63						92						1						93
Other						5						(2)						3						6						(2)						4
Total equity securities						$	2,171					$	226					$	2,397					$	4,329					$	134					$	4,463

Net investment income
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Fixed income securities						$	602					$	571					$	1,210					$	1,097
Equity securities						17						18						37						33
Mortgage loans						9						9						19						18
Limited partnership interests						74						103						268						302
Short-term investments						97						62						169						129
Other investments						24						25						45						46
Investment income, before expense						823						788						1,748						1,625
Investment expense
Investee level expenses						(11)						(14)						(21)						(24)
Securities lending expense						(21)						(27)						(43)						(52)
Operating costs and expenses						(37)						(35)						(76)						(73)
Total investment expense						(69)						(76)						(140)						(149)
Net investment income						$	754					$	712					$	1,608					$	1,476
Property-Liability						$	687					$	643					$	1,470					$	1,345
Protection Services						25						23						49						44
Allstate Health and Benefits						5						25						30						48
Corporate and Other						37						21						59						39
Net investment income						$	754					$	712					$	1,608					$	1,476
Market-based						$	733					$	667					$	1,452					$	1,293
Performance-based						90						121						296						332
Investment income, before expense						$	823					$	788					$	1,748					$	1,625

Net investment income increased 5.9% or $42 million in the second quarter of 2025 and increased 8.9% or $132 million in the first six months of 2025 compared to the same periods of 2024, primarily due to higher market-based investment results, partially offset by lower performance-based investment results. Market-based results continue to benefit from higher investment balances.

68 www.allstate.com

Investments

Performance-based investment income
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Private equity						$	74					$	119					$	177					$	315
Real estate						16						2						119						17
Total performance-based income before investee level expenses						$	90					$	121					$	296					$	332
Investee level expenses (1)						(11)						(14)						(21)						(24)
Total performance-based income						$	79					$	107					$	275					$	308

(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 decreased 26.2% or $28 million in the second quarter of 2025 and decreased 10.7% or $33 million in the first six months of 2025 compared to the same periods of 2024, primarily due to lower private equity valuation increases, partially offset by higher real estate investment results.

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

of the underlying investments and the timing of asset sales. The Company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. As a result, performance-based income in the second quarter of 2025 is primarily comprised of operating and market performance and results of our investments for the three months ended March 31, 2025, and may not reflect economic conditions since the U.S.’s imposition of tariffs on goods imported to the U.S.

Components of net gains (losses) on investments and derivatives and the related tax effect
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Sales						$	(245)					$	(90)					$	(382)					$	(201)
Credit losses (1)						(4)						(16)						(80)						(131)
Valuation change of equity investments - appreciation (decline):
Equity securities						163						19						46						85
Equity fund investments in fixed income securities						1						(5)						6						(9)
Limited partnerships (2)						6						4						1						12
Total valuation of equity investments						170						18						53						88
Valuation change and settlements of derivatives						(65)						(15)						(84)						(23)
Net gains (losses) on investments and derivatives, pre-tax						(144)						(103)						(493)						(267)
Income tax benefit						32						22						105						58
Net gains (losses) on investments and derivatives, after-tax						$	(112)					$	(81)					$	(388)					$	(209)
Property-Liability (1)						$	(148)					$	(81)					$	(408)					$	(208)
Protection Services						1						(1)						(7)						(4)
Allstate Health and Benefits						(1)						1						(2)						2
Corporate and Other						36						—						29						1
Net gains (losses) on investments and derivatives, after-tax						$	(112)					$	(81)					$	(388)					$	(209)
Market-based (1)						$	(168)					$	(99)					$	(489)					$	(284)
Performance-based						24						(4)						(4)						17
Net gains (losses) on investments and derivatives, pre-tax						$	(144)					$	(103)					$	(493)					$	(267)

(1)2025 includes losses recorded for variable interests in Reciprocal Exchanges. 2024 includes losses related to the carrying value of surplus notes issued by Reciprocal Exchanges. See Note 8 for further details.

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

Net losses on investments and derivatives in the second quarter of 2025 primarily related to losses on sales of fixed income securities and valuation change and settlements of derivatives, partially offset by valuation gains on equity investments. Net losses in the first six months of 2025 primarily related to losses on sales of fixed income securities, valuation change and settlements of derivatives and losses recorded for

variable interests in Reciprocal Exchanges, partially offset by valuation gains on equity investments.

Net losses on sales in the second quarter and first six months of 2025 related to sales of fixed income securities in connection with ongoing portfolio management and the execution of our risk reduction strategy. In the second quarter, losses were largely

Second Quarter 2025 Form 10-Q 69

Investments

driven by the repositioning of the portfolio into shorter-duration fixed income securities.

Net losses on valuation change and settlements of derivatives of $65 million and $84 million in the second quarter and first six months of 2025, respectively,

primarily related to losses on foreign currency contracts used to manage foreign currency risk, net losses on interest rate futures used to manage duration and losses on credit default contracts due to tightening credit spreads.

Net gains (losses) on performance-based investments and derivatives
						Three months ended June 30,												Six months ended June 30,
($ in millions)						2025						2024						2025						2024
Sales						$	6					$	2					$	(3)					$	(2)
Credit losses						(4)						(17)						(11)						(21)
Valuation change of equity investments						59						8						66						26
Valuation change and settlements of derivatives						(37)						3						(56)						14
Total performance-based						$	24					$	(4)					$	(4)					$	17

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

70 www.allstate.com

Capital Resources and Liquidity

Capital Resources and Liquidity

Capital resources consist of shareholders’ equity and debt, representing funds deployed or available to be deployed to support business operations or for general corporate purposes.

Capital resources
($ in millions)						June 30, 2025						December 31, 2024
Preferred stock, common stock, treasury stock, retained income and other shareholders’ equity items						$	24,076					$	22,331
Accumulated other comprehensive loss						(57)						(889)
Total Allstate shareholders’ equity						24,019						21,442
Debt (1)						8,087						8,085
Total capital resources						$	32,106					$	29,527
Ratio of debt to Allstate shareholders’ equity						33.7		%				37.7		%
Ratio of debt to capital resources						25.2						27.4

(1)Includes debt issuance costs of $54 million and $56 million as of June 30, 2025 and December 31, 2024, respectively.

Allstate shareholders’ equity increased in the first six months of 2025, primarily due to net income and unrealized net capital gains on investments in 2025 compared to losses at December 31, 2024, partially offset by dividends to shareholders. In the six months ended June 30, 2025, we paid dividends of $509 million and $59 million related to our common and preferred shares, respectively.

Debt maturities We have $600 million of debt that is scheduled to mature in December 2025.

Debt maturities for each of the next five years and thereafter (excluding issuance costs)
($ in millions)
2026						$	550
2027						—
2028						—
2029						500
2030						600
Thereafter						5,891
Total long-term debt principal						$	7,541

Common share repurchases On February 26, 2025, the Board of Directors authorized a new $1.50 billion common share repurchase program that must be completed by September 30, 2026. As of June 30, 2025, there was $1.06 billion remaining in the $1.50 billion common share repurchase program.

During the first six months of 2025, we repurchased 2.2 million common shares, or 0.8% of total common shares outstanding at December 31, 2024, for $445 million.

Common shareholder dividends On January 2, 2025 and April 1, 2025, we paid a common shareholder dividend of $0.92 and $1.00, respectively. On May 28, 2025, we declared a common shareholder dividend of $1.00 payable on July 1, 2025.

Financial ratings and strength Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage. The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies

and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies. These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock.

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

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

There have been no changes to any of our ratings from A.M. Best since December 31, 2024.

Liquidity sources and uses We actively manage our financial position and liquidity levels in light of changing market, economic and business conditions. Liquidity is managed at both the entity and enterprise level across the Company and is assessed on both base and stressed level liquidity needs. We believe we have sufficient liquidity to meet these needs. Additionally, we have existing intercompany agreements in place that facilitate liquidity management across the Company to enhance flexibility.

The Corporation is party to an Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) with certain subsidiaries, which includes, but is not limited to AIC. The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general corporate purposes. The Liquidity Agreement does not establish a commitment to advance funds on the part of any party. AIC serves as a lender and borrower, certain other subsidiaries serve only as borrowers, and the Corporation serves only as a lender. The maximum amount of potential funding under each of these agreements is $1.00 billion.

In addition to the Liquidity Agreement, the Corporation also has an intercompany loan agreement

Second Quarter 2025 Form 10-Q 71

Capital Resources and Liquidity

with certain of its subsidiaries, which includes, but is not limited to, AIC. The amount of intercompany loans available to the Corporation’s subsidiaries is at the discretion of the Corporation. The maximum amount of loans the Corporation will have outstanding to all its eligible subsidiaries at any given point in time is limited to $1.00 billion. The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings.

Parent company capital capacity At the parent holding company level, we have deployable assets totaling $3.98 billion as of June 30, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter. The proceeds from the EVB disposition increased deployable assets at the parent holding company level. In the third quarter of 2025, the proceeds from the group health disposition that closed on July 1, 2025, will increase deployable assets at the parent holding company level. The earnings capacity of the operating subsidiaries is the primary source of capital generation for the Corporation.

As of June 30, 2025, we held $28.06 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.

Based on the greater of 2024 statutory net income or 10% of actual December 31, 2024 statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2026, is estimated to be $3.95 billion, less dividends paid during the preceding twelve months measured at that point in time. In the first six months of 2025, no 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 six months of 2025, we did not defer interest payments on the subordinated debentures.

Additional resources to support liquidity are as follows:

• The Corporation and AIC have access to a $750 million unsecured revolving credit facility that is available for short-term liquidity requirements. The maturity date of this facility is November 2027. The facility is fully subscribed among 11 lenders with the largest commitment being $95 million. The commitments of the lenders are several and no lender is responsible for any other lender’s

commitment if such lender fails to make a loan under the facility. This facility contains an increase provision that would allow up to an additional $500 million of borrowing, subject to the lenders’ commitment. This facility has a financial covenant requiring that we not exceed a 37.5% debt to capitalization ratio as defined in the agreement. This ratio was 19.7% as of June 30, 2025. Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of our senior unsecured, unguaranteed long-term debt. There were no borrowings under the credit facility during 2025.

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

• 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 636 million shares of treasury stock as of June 30, 2025), 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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Forward-Looking Statements

This report contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. These statements may address, among other things, our strategy for growth, catastrophe exposure management, product development, investment results, regulatory approvals, market position, expenses, financial results, litigation and reserves. We believe that these statements are based on reasonable estimates, assumptions and plans. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements resulting from new information or future events or developments. In addition, forward-looking statements are subject to certain risks or uncertainties that could cause actual results to differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include risks related to:

Insurance and Financial Services (1) actual claim costs exceeding current reserves; (2) unexpected increases in claim frequency or severity; (3) catastrophes and severe weather events; (4) limitations in analytical models used for loss cost estimates; (5) price competition and changes in regulation and underwriting standards; (6) regulatory limitations on rate increases and requirements to underwrite business and participate in loss sharing arrangements; (7) market risk and declines in credit quality of our investment portfolios; (8) economic and capital market conditions affecting investments; (9) subjective determination of fair value and amount of credit losses for investments; (10) participation in indemnification programs, including state industry pools and facilities; (11) inability to mitigate the impact associated with changes in capital requirements; (12) a downgrade in financial strength ratings;

Business, Strategy and Operations (13) operations in markets that are highly competitive; (14) changing consumer preferences; (15) new or changing technologies impacting the business; (16) inability to successfully deploy new technologies; (17) Transformative Growth strategy; (18) catastrophe management strategy; (19) restrictions on our subsidiaries’ ability to pay dividends; (20) restrictions under terms of some of our securities on the ability to pay dividends or repurchase stock; (21) the availability and cost of reinsurance; (22) counterparty risk related to reinsurance; (23) acquisitions and divestitures of businesses; (24) intellectual property infringement, misappropriation and third-party claims; (25) reliance on vendors for products, services or protection of data and information; (26) inability to attract, develop and retain talent;

Macro, Regulatory and Risk Environment (27) conditions in the global economy and capital markets, including changes in U.S. trade and tariff policy, newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or additional U.S. tariffs, and our ability to plan for and respond to the impact of those changes; (28) restrictions on liquidity or availability of credit on acceptable terms; (29) a large-scale pandemic, the occurrence of terrorism, military actions or political and social unrest or other disruptive or destabilizing events; (30) the failure in cyber or other information security controls; (31) failure of business continuity following a disaster or other event; (32) changing climate and weather conditions; (33) evolving environmental, social and governance standards and expectations; (34) evolving privacy and data security regulations and increased focus on enforcement; (35) failure to manage risk and to timely detect and mitigate a cybersecurity event; (36) restrictive regulations and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally; (37) regulatory reforms and stringent application of existing regulations; (38) losses from legal and regulatory actions; (39) changes in or the application of accounting standards and changes in tax laws; and (40) misconduct or fraudulent acts by employees, agents and third parties.

Additional information concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K.