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What changed in Allstate's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Allstate's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+461 added−541 removedSource: 10-K (2026-02-20) vs 10-K (2025-02-24)

Top changes in Allstate's 2025 10-K

461 paragraphs added · 541 removed · 390 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

33 edited+10 added−18 removed17 unchanged
Biggest changeBIGs focus on creating opportunities for employees to solve business problems and serve as an incubator for innovation, collaboration and professional development. Analysis from 2024 shows that EIG members at Allstate have a 28% lower turnover than non-members. In 2024, 14% of our Allstate U.S. workforce participated in at least one EIG.
Biggest changeAnalysis from 2025 shows that EIG members at Allstate have a 15% lower turnover than non-members. In 2025, 28% of our Allstate U.S. workforce participated in at least one EIG. Officers from across the enterprise leverage their time, networks and resources to support the EIGs and BIGs, The Allstate Corporation 17 2025 Form 10-K Item 1.
These risks and uncertainties include, but are not limited to, those described in Part 1, “Item 1A. Risk Factors” and elsewhere in this report and those described from time to time in our other reports filed with the Securities and Exchange Commission. 20 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures
These risks and uncertainties include, but are not limited to, those described in Part 1, “Item 1A. Risk Factors” and elsewhere in this report and those described from time to time in our other reports filed with the Securities and Exchange Commission. 20 www.allstate.com 2025 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures
We believe that these service marks are important to our business and we intend to maintain our rights to them. 18 www.allstate.com 2024 Form 10-K Item 1. Business Information about our Executive Officers The following table sets forth the names of our executive officers as of February 1, 2025, their ages, positions and business experience.
We believe that these service marks are important to our business and we intend to maintain our rights to them. 18 www.allstate.com 2025 Form 10-K Item 1. Business Information about our Executive Officers The following table sets forth the names of our executive officers as of February 1, 2026, their ages, positions and business experience.
Allstate continues to make significant progress on Allstate’s talent strategy, including a focus on skills-based hiring by eliminating degree requirements for jobs where having a degree was not required. Allstate also focuses on prioritizing internal hiring and developing, strengthening and retaining existing talent.
Allstate continues to make significant progress on Allstate’s talent strategy, including a focus on skills-based hiring by eliminating degree requirements for jobs where having a degree is not required. Allstate also focuses on prioritizing internal hiring and developing, strengthening and retaining existing talent.
We use the “Allstate ®” , “National General ® ” and “Answer Financial ® ” brands extensively in our business. We also provide additional protection products and services through “Allstate ® Protection Plans”, “Allstate ® Dealer Services”, “Allstate ® Roadside ”, “Arity ® ”, “Allstate ® Identity Protection” “Allstate ® Benefits” and “Allstate ® Health Solutions”, among others.
We use the “Allstate ®” , “National General ® ” and “Answer Financial ® ” brands extensively in our business. We also provide additional protection products and services through “Allstate ® Protection Plans”, “Allstate ® Dealer Services”, “Allstate ® Roadside ”, “Arity ® ”, “Allstate ® Identity Protection”, “Allstate ® Health Solutions”, and “Esurance ®” , among others.
DeBiase 56 Executive Vice President, Chief Legal Officer and General Counsel of The Allstate Corporation and AIC (May 2024 to present); Executive Vice President, Chief Legal Officer, General Counsel and Corporate Secretary of The Allstate Corporation and AIC (January 2023 to May 2024); Executive Vice President, Chief Administrative Officer and General Counsel of Brighthouse Financial (February 2018 to December 2022).
DeBiase 57 Executive Vice President, Chief Legal Officer and General Counsel of The Allstate Corporation and AIC (May 2024 to present); Executive Vice President, Chief Legal Officer, General Counsel and Corporate Secretary of The Allstate Corporation and AIC (January 2023 to May 2024); Executive Vice President, Chief Administrative Officer and General Counsel of Brighthouse Financial (February 2018 to December 2022).
Zulfikar Jeevanjee 60 Executive Vice President and Chief Information Officer of AIC (October 2022 to present); Senior Vice President, Chief Technology Officer, CVS Health (February 2021 to September 2022); Senior Vice President, Chief Enterprise Architect of AIC (November 2018 to February 2021). Jesse E.
Zulfikar Jeevanjee 61 Executive Vice President and Chief Information Officer of AIC (October 2022 to present); Senior Vice President, Chief Technology Officer, CVS Health (February 2021 to September 2022); Senior Vice President, Chief Enterprise Architect of AIC (November 2018 to February 2021). Jesse E.
Ferren 51 Senior Vice President, Controller and Chief Accounting Officer of The Allstate Corporation and AIC (May 2024 to present); Chief Financial Officer of Revantage (April 2024 to May 2024); Senior Vice President, Controller, and Chief Accounting Officer of The Allstate Corporation (May 2017 to September 2019) and Senior Vice President of AIC (May 2014 to April 2024).
Ferren 52 Senior Vice President, Controller and Chief Accounting Officer of The Allstate Corporation and AIC (May 2024 to present); Chief Financial Officer of Revantage (April 2024 to May 2024); Senior Vice President, Controller, and Chief Accounting Officer of The Allstate Corporation (May 2017 to September 2019) and Senior Vice President of AIC (May 2014 to April 2024).
Suren Gupta 63 Executive Vice President, President, Protection Products & Enterprise Services of AIC (August 2023 to present); President, Enterprise Services (October 2022 to August 2023); Executive Vice President, Chief Information Technology and Enterprise Services Officer of AIC (January 2020 to October 2022).
Suren Gupta 64 Executive Vice President, President, Protection Products & Enterprise Services of AIC (August 2023 to present); President, Enterprise Services (October 2022 to August 2023); Executive Vice President, Chief Information Technology and Enterprise Services Officer of AIC (January 2020 to October 2022).
Wilson 67 Chairman of the Board (May 2008 to present), President (June 2005 to January 2015 and February 2018 to present), and Chief Executive Officer (January 2007 to present) of The Allstate Corporation and AIC. Elizabeth A. Brady 60 Executive Vice President, Chief Marketing, Customer and Communications Officer of AIC (January 2020 to present). Christine M.
Wilson 68 Chairman of the Board (May 2008 to present), President (June 2005 to January 2015 and February 2018 to present), and Chief Executive Officer (January 2007 to present) of The Allstate Corporation and AIC. Elizabeth A. Brady 61 Executive Vice President, Chief Marketing, Customer and Communications Officer of AIC (January 2020 to present). Andréa M.
In addition to the above discussion of our employees, please see information about Allstate agents under the captions “Allstate Protection Segment - Products and Distribution” and “Compensation Structure” in Part I, Item 1 of this report. The Allstate Corporation 17 2024 Form 10-K Item 1. Business Website Our website is allstate.com.
In addition to the above discussion of our employees, please see information about Allstate agents under the captions “Allstate Protection Segment - Products and Distribution” and “Compensation Structure” in Part I, Item 1 of this report. Website Our website is www.allstate.com.
The Allstate Corporation 19 2024 Form 10-K Item 1. Business 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.
Business 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.
In addition, individual states and their securities regulators have and may adopt their own enhanced conduct standards for broker-dealers that could impact products provided by Allstate agents and Allstate’s broker-dealer, their sales processes, sales volume, and producer compensation arrangements.
In addition, individual states and their securities regulators have and may adopt their own enhanced conduct standards for broker-dealers that could impact products provided by Allstate agents and Allstate’s broker-dealer, their sales processes, sales volume, and producer compensation arrangements. Climate disclosures In October 2023, California enacted several climate disclosure bills.
Guaranty funds Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, in order to cover certain obligations of insolvent insurance companies. We do not anticipate any material adverse financial impact on Allstate from these assessments.
Note 11 is incorporated in this Part I, Item 1 by reference. Guaranty funds Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, in order to cover certain obligations of insolvent insurance companies. We do not anticipate any material adverse financial impact on Allstate from these assessments.
Officers from across the enterprise leverage their time, networks and resources to support the EIGs and BIGs, and positively impact employee engagement and retention at Allstate. Our early career programs, including apprenticeship, internship and development programs, are designed to build skills through on-the-job experiences, formal learning and peer learning. These programs attract a variety of backgrounds and experiences.
Business and positively impact employee engagement and retention at Allstate. Our early career programs, including apprenticeship, internship and development programs, are designed to build skills through on-the-job experiences, formal learning and peer learning. These programs attract a variety of backgrounds and experiences.
Other Information About Allstate • Allstate’s five reportable segments use shared services, including human resources, investment, finance, information technology and legal services, provided by Allstate Insurance Company and other affiliates. • Although the insurance business generally is not seasonal, claims and claims expense for the Allstate Protection segment tend to be higher for periods of severe or inclement weather. • “Allstate ® ” is a very well-recognized brand name in the United States.
Other Information About Allstate • Allstate’s four reportable segments use shared services, including human resources, investment, finance, information technology and legal services, provided by Allstate Insurance Company and other affiliates. • Seasonal patterns of severe or inclement weather typically result in higher claim volumes and increased claims expense within the Allstate Protection segment. • “Allstate ® ” is a very well-recognized brand name in the United States.
Item 1. Business participate in the Federal Government National Flood Insurance Program. For a discussion of these items see Note 12 of the consolidated financial statements. Note 12 is incorporated in this Part I, Item 1 by reference.
Item 1. Business For a discussion of these items see Note 14 of the consolidated financial statements. Note 14 is incorporated in this Part I, Item 1 by reference.
Merten 50 Executive Vice President and Chief Financial Officer of The Allstate Corporation and AIC (September 2022 to present); President, Financial Products of AIC (May 2020 to September 2022); Executive Vice President and Chief Risk Officer of AIC (December 2017 to May 2020). Mark Q.
Merten 51 Executive Vice President, President, Property-Liability of AIC (October 2025 to present); Executive Vice President and Chief Financial Officer of The Allstate Corporation and AIC (September 2022 to October 2025); President, Financial Products of AIC (May 2020 to September 2022). Mark Q. Prindiville 58 Executive Vice President and Chief Risk Officer of AIC (May 2020 to present).
We cannot predict the impact on our business of possible future legislative or regulatory measures regarding privacy or cybersecurity. Asbestos Congress has repeatedly considered legislation to address asbestos claims and litigation in the past. We cannot predict the impact on our business of possible future legislative measures regarding asbestos.
We cannot predict the impact on our business of possible future legislative or regulatory measures regarding privacy or cybersecurity. The Allstate Corporation 15 2025 Form 10-K Item 1. Business Asbestos, environmental and other run-off lines Congress has repeatedly considered legislation to address asbestos claims and litigation in the past.
The NAIC periodically reviews the statutory accounting and RBC requirements for investments and makes changes from time to time. Exiting geographic markets; canceling and non-renewing policies Most states regulate an insurer’s ability to exit a market. For example, states may limit, to varying degrees, an insurer’s ability to cancel and non-renew policies.
Exiting geographic markets; canceling and non-renewing policies Most states regulate an insurer’s ability to exit a market. For example, states may limit, to varying degrees, an insurer’s ability to cancel and non-renew policies.
Environmental Environmental pollution and clean-up of polluted waste sites is the subject of federal and state regulation. The Comprehensive Environmental Response Compensation and Liability Act of 1980 and comparable state statutes (collectively, the “Environmental Clean-up Laws” or “ECLs”) govern the clean-up and restoration of waste sites by Potentially Responsible Parties (“PRPs”).
The Comprehensive Environmental Response Compensation and Liability Act of 1980 and comparable state statutes (collectively, the “Environmental Clean-up Laws” or “ECLs”) govern the clean-up and restoration of waste sites by Potentially Responsible Parties (“PRPs”). The ECLs establish a mechanism to assign liability to PRPs or to fund the clean-up of waste sites if PRPs fail to do so.
John E. Dugenske 58 President, Investments and Corporate Strategy of AIC (September 2022 to present); President, Investments and Financial Products of AIC (January 2020 to September 2022). Eric K.
John E. Dugenske 59 Chief Financial Officer of The Allstate Corporation (October 2025 to present), President, Investments and Corporate Strategy of AIC (September 2022 to present); President, Investments and Financial Products of AIC (January 2020 to September 2022); Executive Vice President and Chief Investment and Corporate Strategy Officer of AIC (January 2018 to January 2020). Eric K.
The insurance industry is involved in extensive litigation regarding coverage issues arising out of the clean-up of waste sites by insured PRPs and the insured parties’ alleged liability to third parties responsible for the clean-up. Allstate’s exposure to liability with regard to its insureds that have been, or may be, named as PRPs is uncertain.
The extent of liability to be allocated to a PRP depends on a variety of factors. The insurance industry is involved in extensive litigation regarding coverage issues arising out of the clean-up of waste sites by insured PRPs and the insured parties’ alleged liability to third parties responsible for the clean-up.
Annually, we seek to identify potential pay gaps as well as identify policies or practices that may contribute to pay gaps. The external analyses found that Allstate’s results compared well to benchmarks for companies of similar size and scope. 16 www.allstate.com 2024 Form 10-K Item 1.
Annually, we seek to identify potential pay gaps as well as identify policies or practices that may contribute to pay gaps. The external analyses found that Allstate’s results compared well to benchmarks for companies of similar size and scope. Allstate supports and funds voluntary, employee-led Employee Impact Groups (“EIGs”) and Business Impact Groups (“BIGs”) that are open to all employees.
Business Allstate supports and funds voluntary, employee-led Employee Impact Groups (“EIGs”) and Business Impact Groups (“BIGs”) that are open to all employees. EIGs and BIGs make our company stronger by enhancing employee connection, belonging and engagement, resulting in better business results and service for our customers. EIGs help foster a sense of belonging by focusing on development, engagement and collaboration.
EIGs and BIGs make our company stronger by enhancing employee connection, belonging and engagement, resulting in better business results and service for our customers. EIGs help foster a sense of belonging by focusing on development, engagement and collaboration. BIGs focus on creating opportunities for employees to solve business problems and serve as an incubator for innovation, collaboration and professional development.
Allstate encourages employees to proactively manage their career so it is integrated into their personal purpose. This includes investing in and holding management accountable for employee development and maintaining a culture aligned with Our Shared Purpose at all levels. Our culture supports Allstate as we transform to become the lowest cost protection provider with an affordable, simple, connected experience.
Allstate defines organizational culture as a self-sustaining system of values, expectations, practices, and beliefs that drive organizational priorities, decisions and outcomes. Allstate encourages employees to proactively manage their career so it is integrated into their personal purpose. This includes investing in and holding management accountable for employee development and maintaining a culture aligned with Our Shared Purpose at all levels.
Developments in the insurance and reinsurance industries have fostered a movement to segregate asbestos, environmental and other run-off lines exposures into separate legal entities with dedicated capital. Regulatory bodies in certain cases have supported these actions. We are unable to determine the impact, if any, that these developments will have on the collectability of reinsurance recoverables in the future.
Allstate’s exposure to liability with regard to its insureds that have been, or may be, named as PRPs is uncertain. Developments in the insurance and reinsurance industries have fostered a movement to segregate asbestos, environmental and other run-off lines exposures into separate legal entities with dedicated capital. Regulatory bodies in certain cases have supported these actions.
Prindiville 57 Executive Vice President and Chief Risk Officer of AIC (May 2020 to present); Senior Vice President of AIC (September 2016 to May 2020). Mario Rizzo 58 President, Property-Liability of AIC (September 2022 to present); Executive Vice President and Chief Financial Officer of The Allstate Corporation and AIC (January 2018 to September 2022).
Mario Rizzo 59 Executive Vice President, Chief Operating Officer of AIC (October 2025 to present); Executive Vice President, President, Property-Liability of AIC (September 2022 to October 2025); Executive Vice President and Chief Financial Officer of The Allstate Corporation and AIC (January 2018 to September 2022). The Allstate Corporation 19 2025 Form 10-K Item 1.
Allstate has publicly reported its greenhouse gas inventory since 2010. We will continue evaluating the 14 www.allstate.com 2024 Form 10-K Item 1. Business anticipated impacts and scope of the new laws on our reporting and disclosures.
Allstate has publicly reported its greenhouse gas inventory since 2010 and is well-positioned to comply with the new law, subject to the proposed regulations being finalized. We will continue evaluating the anticipated impacts and scope of the new laws on our reporting and disclosures.
One of these is the Climate Corporate Data Accountability Act (Senate Bill 253), which requires disclosure and assurance over greenhouse gas emissions using a phased reporting approach. The law, as amended in September 2024, requires the California Air Resources Board to develop and adopt implementing regulations no later than July 1, 2025.
One of these is the Climate Corporate Data Accountability Act, which requires disclosure and assurance over greenhouse gas emissions using a phased reporting approach. The California Air Resources Board has issued proposed regulations with an initial reporting deadline of August 2026.
Investment regulation Our insurance subsidiaries are subject to state regulation that specifies the types of investments that can be made and concentration limits of invested assets. Failure to comply with these rules leads to the treatment of non-conforming investments as non-admitted assets for purposes of measuring statutory surplus. Further, in some instances, these rules require divestiture of non-conforming investments.
Failure to comply with these rules leads to the treatment of non-conforming investments as non-admitted assets for purposes of measuring statutory surplus. Further, in some instances, these rules require divestiture of non-conforming investments. The NAIC periodically reviews the statutory accounting and risk-based capital (“RBC”) requirements for investments and makes changes from time to time.
We invest in talent development and employee engagement, health, safety and well-being because this contributes to Allstate’s success. In 2024, Allstate was recognized for the 10 th year as one of the World's Most Ethical Companies. As of December 31, 2024, Allstate had approximately 55,000 full-time employees and 400 part-time employees.
Our culture supports Allstate as we transform to become the lowest cost protection provider with an affordable, simple, connected experience. We invest in talent development and employee engagement, health, safety and well-being because this contributes to Allstate’s success. Allstate is one of 136 organizations spanning 19 countries and 44 industries to receive the World's Most Ethical Companies designation.
The Allstate Corporation 15 2024 Form 10-K Item 1. Business Human Capital Allstate’s success is highly dependent on human capital and a strong organizational culture. Allstate defines organizational culture as a self-sustaining system of shared values, priorities and principles that shape beliefs and drive behaviors and decision-making within an organization.
We are unable to determine the impact, if any, that these developments will have on the collectability of reinsurance recoverables in the future. 16 www.allstate.com 2025 Form 10-K Item 1. Business Human Capital Allstate’s success is highly dependent on human capital and a strong organizational culture.
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Inflation Reduction Act of 2022 The Inflation Reduction Act of 2022, which contains several tax-related provisions, was signed into law in August 2022. The law established a 15% corporate alternative minimum tax (“CAMT”) for certain large corporations and an excise tax of 1% on stock repurchases by publicly traded U.S. corporations, both effective after December 31, 2022.
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Indemnification programs We are a participant in state-based industry pools, facilities or associations, mandating participation by insurers offering certain coverage in their state, including the Michigan Catastrophic Claims Association (“MCCA”), the New Jersey Property-Liability Insurance Guaranty Association, the North Carolina Reinsurance Facility and the Florida Hurricane Catastrophe Fund.
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The excise tax on common stock repurchases is classified as an additional cost of the stock acquired included in treasury stock in shareholders' equity.
Added
We also sell and service Federal Government National Flood Insurance Program (“NFIP”) flood policies as an agent of the Federal Emergency Management Agency (“FEMA”). For a discussion of these items see Note 11 of the consolidated financial statements and Part II, Item 7 - Management’s Discussion and Analysis of Reinsurance and indemnification programs.
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The Company has determined that it is considered an “applicable corporation” under the rules of CAMT. 15% Global Minimum Tax The Organization for Economic Cooperation and Development (“OECD”) secured agreement from nearly 140 countries to address how corporate profits are taxed for multinational enterprises (“MNEs”).
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For a discussion of these items see Note 14 of the consolidated financial statements. Note 14 is incorporated in this Part I, Item 1 by reference. Investment regulation Our insurance subsidiaries are subject to state regulation that specifies the types of investments that can be made and concentration limits of invested assets.
Removed
OECD released Pillar Two model rules, a 15% minimum effective tax rate (also known as the Global Anti-Base Erosion, designed to ensure that large MNEs pay a minimum level of tax on the income arising in each jurisdiction where they operate and mandates sharing of certain company information with taxing authorities on a local and global basis.
Added
We cannot predict the impact on our business of possible future legislative measures regarding asbestos. Environmental pollution and clean-up of polluted waste sites is the subject of federal and state regulation.
Removed
The Company is within the scope of the OECD Pillar Two model rules, and certain jurisdictions where the Company operates have enacted their respective tax law to comply with the Pillar Two framework beginning on or after December 31, 2023. The Company does not expect the impact to be material to its results of operations.
Added
In 2025, we are one of two honorees in the Property & Casualty industry. As of December 31, 2025, Allstate had approximately 53,000 full-time employees and 300 part-time employees. Allstate’s human capital management focuses on the following priorities: Talent development and employee engagement We strive to make Allstate a place where employees find purpose, growth, belonging and shared success.
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The Company continues to evaluate the impact as additional jurisdictions, including those in which we operate, adopt their own legislation throughout 2025 and beyond. Climate disclosures In March 2024, the SEC adopted a final rule requiring registrants to disclose certain climate-related information in their registration statements and annual reports.
Added
Our flexible work environment and focus on holistic support continue to strengthen talent attraction, retention and engagement. • Purpose-driven impact: Employees consistently report a strong sense of connection to Allstate’s purpose and the difference their work makes in people’s lives.
Removed
On April 4, 2024, the SEC issued a voluntary stay of the final rule, awaiting the outcome of pending litigation. It is not yet clear whether or how the SEC’s stay will impact the compliance timeline for the rule.
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Our engagement results remain well above industry benchmarks, reflecting pride in our mission and leadership. • Personal growth: We expanded opportunities for continuous learning, supporting career advancement through degree and certification programs, leadership development, and early career enrichment experiences that help new talent thrive. • Individuality and inclusion: We continue to foster an environment where people feel seen, heard, and respected.
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If implemented as adopted, the rule will require the disclosure of qualitative and quantitative information, with certain information, such as financial statement effects of severe weather events, included in the notes to the audited financial statements.
Added
Feedback from global surveys shows employees value the flexibility to balance individual needs with enterprise priorities. • Attractive rewards: Competitive pay, recognition programs, and benefits continue to reinforce Allstate as an employer of choice, with many employees advancing into new roles within the company. • Winning team: Employees describe Allstate as a collaborative, high-performing culture where teams rally around shared goals to strive to outperform competitors and support one another’s success, core to how we deliver for our customers and each other.
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Other disclosure requirements include material climate-related risks, processes to manage and govern those risks, disclosure of targets if the targets materially affect or are reasonably likely to materially affect the Company, and, if material, disclosure of certain greenhouse gas emissions. The Company is currently monitoring the status of the final rule.
Added
Employee well-being and safety We believe in a culture of well-being and take our responsibility to care for employees’ physical, mental and emotional health seriously. • We expanded our workplace well-being strategy based on employee feedback, offering greater flexibility in how, when and where work gets done, and tailoring programs through personalized well-being assessments that also help lower benefit costs. • Thrive 365 and other engagement initiatives bring well-being to life year-round through learning, connection, and access to holistic resources that support personal and collective wellness. • All full and part-time employees are eligible for paid family care leave from their first day, reinforcing our support for life outside of work. • Programs such as Coffee Connections and Leadership Connectivity Standards strengthen belonging and purposeful in-person engagement across teams. • A culture of recognition and openness is reinforced through our global peer-to-peer recognition program with more than 1 million recognitions in 2025 and our “Speak Up” process that encourages employees to raise concerns confidently.
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In February 2025, the SEC requested that the court not schedule the case for argument to provide time for the SEC to deliberate and determine next steps. In October 2023, California enacted several climate disclosure bills.
Added
Carter 56 Executive Vice President and Chief Human Resources Officer of AIC (May 2025 to present); Senior Executive Vice President and Chief Human Resources Officer of Global Payments, Inc. (July 2020 to March 2025). Christine M.
Removed
The ECLs establish a mechanism to assign liability to PRPs or to fund the clean-up of waste sites if PRPs fail to do so. The extent of liability to be allocated to a PRP depends on a variety of factors.
Removed
Allstate’s human capital management focuses on the following priorities: Talent development and employee engagement We seek to provide employees with rewarding work, professional growth, holistic support programs and educational opportunities.
Removed
Our flexible work policies support talent attraction and retention. • In 2024, Allstate: – Sustained a voluntary turnover rate of 13%. – Maintained employee engagement scores that surpassed industry benchmarks, with 84% of employees expressing a favorable view of engagement. – Increased its global workforce surveys on the employee experience, which assess employee sentiment around topics like their sense of connection, feelings of wellbeing, workload management and overall job satisfaction. – Launched an early career enrichment experience, designed to upskill early career employees.
Removed
The program provides tools, resources, and an environment to support the development of early career talent during their first year in role. – Provided financial assistance to more than 2,000 Allstate U.S. employees to enroll in a formal degree, certificate, or boot camp program. – Filled over 35% of open U.S. positions with internal applicants.
Removed
Employee well-being and safety We believe in a culture of well-being and take our responsibility to care for employees’ well-being seriously, devoting resources to employee health and safety. • Allstate created a workplace well-being strategy based on employee feedback, including providing greater flexibility in how, when and where work is done. • Well-being assessments are offered to understand employee needs and wants to support their well-being.
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Completing the assessment lowers the cost of benefits to employees and allows Allstate to provide holistic programs based on personalized interests. • We focus on supporting Allstaters outside of work, as all full-time and part-time Allstate employees are eligible for paid leave to care for family members from the day they join Allstate. • In 2024, we spent $58 million for in-person and virtual events, travel budgets, and other engagement and team-building activities that bring Allstaters together to strengthen connection and belonging among teams that may not work in the same location. • We provide avenues for Allstaters to recognize and support each other, including a global peer-to-peer recognition program available in the U.S., Mexico, Canada, India and Northern Ireland.
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In 2024, employees recognized each other over one million times.
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Recognized employees earn points that can be redeemed for merchandise, gift cards or donations to charities. • We create an environment where employees feel confident and supported to raise concerns through Allstate's "Speak Up" process. • Our Wellbeing Champion community connects their teams and leaders with Allstate’s health and wellness resources and promotes opportunities to engage in programs and coaching, including courses facilitated by internal performance coaches on well-being themes and virtual yoga and meditation classes offered four times a week.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

79 edited+14 added−16 removed57 unchanged
Biggest changeThe failure to identify, measure and manage risk effectively, or the failure to restore business operations after a cybersecurity event, could have a material impact on our financial condition or results of operations Integrated operational risk and return management processes and practices may not be sufficient to timely detect and mitigate operational risks, including those posed by third-party service providers, that could have an adverse effect on our reputation and business.
Biggest changeIntegrated operational risk and return management processes and practices may not be sufficient to timely detect, mitigate and respond to cybersecurity operational risks, including those posed by the use of third-party services (e.g., cloud technology, software as a service) and artificial intelligence. Service providers and other vendors may The Allstate Corporation 27 2025 Form 10-K Part I - Item 1A.
There are threats that could impact our ability to protect our data and systems; if the threats materialize, they could impact: • Confidentiality — protecting our data from disclosure to unauthorized parties • Integrity — ensuring data is not changed accidentally or without authorization and is accurate • Availability — ensuring our data and systems are accessible to meet business needs We collect, use, store or transmit a large amount of confidential, proprietary and other information (including personal information of customers, claimants or employees) in connection with the operation of our business.
There are threats that could impact our ability to protect our data and systems; if the threats materialize, they could impact: • Confidentiality — protecting our data from disclosure to unauthorized parties • Integrity — ensuring data is not changed accidentally or without authorization and is accurate • Availability — ensuring our data and systems are accessible to meet business needs We collect, use, store or transmit a large amount of confidential, proprietary and other information (including personal information of customers, claimants and employees) in connection with the operation of our business.
There is risk that one regulator’s or enforcement authority’s interpretation of a legal issue may change to our detriment. There is also a risk that changes in the overall legal environment may cause us to change our views regarding the actions we need to take from a legal risk management perspective.
There is risk that one regulator’s or enforcement authority’s interpretation of a legal issue may change to our detriment. There is also a risk that changes in the overall legal environment may cause us to change our views regarding the actions we need to take from a risk management perspective.
Our personal property insurance business may incur catastrophe losses greater than: • Those experienced in prior years • The average expected level used in pricing • Current reinsurance coverage limits • Loss estimates from hurricane and earthquake models at various levels of probability Property and casualty businesses are subject to claims arising from severe weather events such as wildfires, winter storms, rain, hail and high winds.
Our personal property insurance business may incur catastrophe losses greater than: • Those experienced in prior years • The expected level used in pricing • Current reinsurance coverage limits • Loss estimates from hurricane and earthquake models at various levels of probability Property and casualty businesses are subject to claims arising from severe weather events such as wildfires, winter storms, rain, hail and high winds.
Investments are subject to risks associated with economic and capital market conditions and factors that may be unique to our portfolio, including: • General weakening of the economy, which is typically reflected through higher credit spreads and lower equity and real estate valuations • Declines in credit quality • Declines in interest rates, credit spreads or sustained low interest rates could lead to declines in portfolio yields and investment income • Increases in market interest rates, credit spreads or a decrease in liquidity could have an adverse effect on the value of fixed income securities that form a substantial majority of our investment portfolios • Adverse changes in foreign currency exchange rates • Changes in U.S. and foreign tax laws • Imposition of new or increased tariffs • Supply chain disruptions, labor shortages, macro trends impacting real estate supply and demand and other factors may have an adverse impact on investment valuations and returns • Weak performance of general and joint venture partners and underlying investments unrelated to general market or economic conditions could lead to declines in investment income and cause realized losses in limited partnership interests • Concentration in any particular issuer, industry, collateral type, group of related industries, geographic sector or risk type The approaches we use to actively manage exposure to market risk, including rebalancing existing asset or liability portfolios, changing the type of investments purchased in the future, and use of derivative instruments to modify the market risk characteristics of existing assets and liabilities or assets expected to be purchased may not perform as intended or expected, resulting in higher than expected realized and unrealized losses.
Investments are subject to risks associated with economic and capital market conditions and factors that may be unique to our portfolio, including: • General weakening of the economy, which is typically reflected through higher credit spreads and lower equity and real estate valuations • Declines in credit quality • Declines in interest rates, credit spreads or sustained low interest rates could lead to declines in portfolio yields and investment income • Increases in market interest rates, credit spreads or a decrease in liquidity could have an adverse effect on the value of fixed income securities • Adverse changes in foreign currency exchange rates • Changes in U.S. and foreign tax laws • Imposition of new or increased tariffs • Supply chain disruptions, labor shortages, macro trends impacting real estate supply and demand and other factors may have an adverse impact on investment valuations and returns • Weak performance of general and joint venture partners and underlying investments unrelated to general market or economic conditions could lead to declines in investment income and cause realized losses in limited partnership interests • Concentration in any particular issuer, industry, asset type, collateral type, group of related industries, geographic sector or risk type The approaches we use to actively manage exposure to market risk, including rebalancing existing asset or liability portfolios, changing the type of investments purchased in the future and use of derivative instruments to modify the market risk characteristics of existing assets and liabilities or assets expected to be purchased may not perform as intended or expected, resulting in higher than expected realized and unrealized losses.
Changes may lead to additional expenses, increased legal exposure, or increased reserve or capital requirements limiting our ability to grow or to achieve targeted profitability. Moreover, laws and regulations are administered and enforced by governmental authorities that exercise interpretive latitude, including: • State insurance regulators • State securities administrators • State attorneys general • U.S.
Changes may lead to additional expenses, increased legal exposure, delays or increased reserve or capital requirements limiting our ability to grow or to achieve targeted profitability. Moreover, laws and regulations are administered and enforced by governmental authorities that exercise interpretive latitude, including: • State insurance regulators • State securities administrators • State attorneys general • U.S.
Evolving privacy and data security regulations and increased focus on enforcement could impact our business, increase costs and any violations could subject us to regulatory fines and reputational impact Personal information is subject to an increasing number of federal, state, local and international laws and regulations regarding privacy and data security, as well as contractual commitments.
Evolving privacy and data security regulation and increased focus on enforcement could impact our business, increase costs and any violations could subject us to regulatory fines and reputational impact Personal information is subject to an increasing number of federal, state, local and international laws and regulations regarding privacy and data security, as well as contractual commitments.
There could also be more frequent wildfires in certain geographies, more flooding and the potential for increased severity of hurricanes. As a result, incurred losses from such events and the demand, price and availability of reinsurance coverages for automobile and homeowners insurance may be affected.
There could also be more frequent wildfires in certain geographies, more flooding and the potential for increased severity of losses. As a result, incurred losses from such events and the demand, price and availability of reinsurance coverages for automobile and homeowners insurance may be affected.
For further details, see MD&A, Application of Critical Accounting Estimates. Unexpected increases in the frequency or severity of property and casualty claims may adversely affect our results of operations and financial condition A significant increase in claim frequency could adversely affect the results of operations and financial condition.
For further details, see MD&A, Application of Critical Accounting Estimates. Increases in the frequency or severity of property and casualty claims may adversely affect our results of operations and financial condition A significant increase in claim frequency could adversely affect the results of operations and financial condition.
If we are unable to adapt to or bring such advancements and innovations to market, the quality of our products, our relationships with customers and agents, competitive position and business prospects may be materially affected.
If we are unable to adapt to or bring such advancements and innovations to market, the quality and marketability of our products, our relationships with customers and agents, competitive position and business prospects may be materially affected.
Financial results could be adversely affected by unanticipated performance or compliance issues, unforeseen liabilities, transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems and failure of cybersecurity controls, amortization of expenses related to intangibles, charges for impairment of long-term assets or goodwill and indemnifications.
Financial results could be adversely affected by unanticipated performance or compliance issues, unforeseen liabilities, transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems and failure of cybersecurity controls, amortization of expenses related to intangibles, charges for impairment of long-lived assets or goodwill and indemnifications.
A decline in the growth or profitability of the property and casualty businesses could have a material effect on the results of operations and financial condition.
A decline in the growth or relative profitability of the property and casualty businesses could have a material effect on the results of operations and financial condition.
Adverse changes have and may continue to occur due to changes in monetary and fiscal policy, inflation, geopolitical events and the economic climate, liquidity of a market or market segment, investor return expectations or risk tolerance, insolvency or financial distress of key market makers or participants, instability of the banking sector, or changes in market perceptions of credit worthiness.
Adverse changes have and may continue to occur due to changes in monetary and fiscal policy, inflation, unemployment, economic growth, geopolitical events and the economic climate, liquidity of a market or market segment, investor return expectations or risk tolerance, insolvency or financial distress of key market makers or participants, instability of the banking sector, or changes in market perceptions of credit worthiness.
For further discussion of these items, see Regulation section, Indemnification Programs and Note 12 of the consolidated financial statements. We may not be able to mitigate the impact associated with changes in capital requirements Regulatory requirements affect the amount of capital to be maintained by our subsidiary insurance companies.
For further discussion of these items, see Regulation section, Indemnification Programs and Note 11 of the consolidated financial statements. We may not be able to mitigate the impact associated with changes in capital requirements Regulatory requirements affect the amount of capital to be maintained by our subsidiary insurance companies.
Its principal assets are the stock of its subsidiaries and its directly held cash and investment portfolios. Its liabilities include debt and pension and other postretirement benefit obligations related to employees. State insurance regulatory authorities limit the payment of dividends by insurance subsidiaries, as described in Note 18 of the consolidated financial statements.
Its principal assets are the stock of its subsidiaries and its directly held cash and investment portfolios. Its liabilities include debt and pension and other postretirement benefit obligations related to employees. State insurance regulatory authorities limit the payment of dividends by insurance subsidiaries, as described in Note 16 of the consolidated financial statements.
If the full preferred stock dividends for all preceding dividend periods have not been declared and paid, we generally may not repurchase or pay dividends on common stock during any dividend period while our preferred stock is outstanding. For additional details, see Note 14 of the consolidated financial statements.
If the full preferred stock dividends for all preceding dividend periods have not been declared and paid, we generally may not repurchase or pay dividends on common stock during any dividend period while our preferred stock is outstanding. For additional details, see Note 12 of the consolidated financial statements.
For additional information, see Note 16 of the consolidated financial statements. Changes in or the application of accounting standards issued by standard-setting bodies and changes in tax laws may adversely affect results of operations and financial condition Our financial statements are subject to GAAP, which are periodically revised, interpreted or expanded.
For additional information, see Note 14 of the consolidated financial statements. Changes in or the application of accounting standards issued by standard-setting bodies and changes in tax laws may adversely affect results of operations and financial condition Our financial statements are subject to GAAP, which are periodically revised, interpreted or expanded.
The potential impact of state or federal measures that change the nature or scope of insurance and financial regulation is uncertain but may make it more expensive for us to conduct business and limit our ability to grow or achieve profitability.
The potential impact of state or federal measures that change the nature or scope of insurance and financial regulation is uncertain but may make it more expensive for us to conduct business and limit our ability to grow or maintain profitability.
Systems are subject to increased cyberattacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. We constantly defend against threats to our data and systems, including malware, ransomware and computer virus attacks, unauthorized access, system failures and disruptions.
Systems are subject to increased risk of cyberattacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. We constantly defend against threats to our data and systems, including malware, ransomware and computer virus attacks, unauthorized access, system failures and disruptions.
Changes in mix of business, miles driven, weather patterns, driving behaviors or other factors can lead to changes in claim frequency. We may experience volatility in claim frequency, and short-term The Allstate Corporation 21 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures trends may not be predictive of future losses over the longer term.
Changes in mix of business, miles driven, weather patterns, driving behaviors, technology or The Allstate Corporation 21 2025 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures other factors can lead to changes in claim frequency. We may experience volatility in claim frequency, and short-term trends may not be predictive of future losses over the longer term.
Our investment portfolios are subject to market risk and declines in credit quality which may adversely affect or create volatility in investment income and cause realized and unrealized losses We continually evaluate investment management strategies since we are subject to risk of loss due to adverse changes in interest rates, credit spreads, equity prices, real estate values, currency exchange rates and liquidity.
Our investment portfolios are subject to market risk, including interest rate risk and equity price risk, and declines in credit quality which may adversely affect or create volatility in investment income and cause realized and unrealized losses We continually evaluate investment management strategies since we are subject to risk of loss due to adverse changes in interest rates, equity prices, credit spreads, real estate values, currency exchange rates and liquidity.
A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our business A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest, declines in trust in government and businesses or other disruptive or destabilizing events may result in loss of life, property damage, and disruptions to commerce and reduced economic activity.
Widespread disruptive or destabilizing events may have an adverse effect on our business Disruptive or destabilizing events such as a large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest, declines in trust in government and businesses or other events may result in loss of life, property damage, and disruptions to commerce and reduced economic activity.
Risk Factors and Other Disclosures Participation in indemnification programs subjects us to the risk that reimbursement for qualifying claims and claims expenses may not be received Participation in state-based industry pools, facilities and associations may have a material, adverse effect on the results of operations and financial condition.
Participation in indemnification programs subjects us to the risk that reimbursement for qualifying claims and claims expenses may not be received Participation in state-based industry pools, facilities and associations may have a material, adverse effect on the results of operations and financial condition.
Risk Factors and Other Disclosures Losses from changing climate and weather conditions may adversely affect financial condition, profitability or cash flows Climate change affects the occurrence of certain natural events, such as increasing the frequency or severity of wind, tornado, hailstorm and thunderstorm events due to increased convection in the atmosphere.
Risk Factors and Other Disclosures Losses from changing climate and weather conditions may adversely affect financial condition, profitability or cash flows Increased global temperatures affect the occurrence of certain natural events, such as increasing the frequency or severity of wind, tornado, hailstorm and thunderstorm events due to increased convection in the atmosphere.
The failure of cyber or other information security controls, could result in a loss or disclosure of confidential information, damage to our reputation, additional costs and impair our ability to conduct business effectively We use technology, artificial intelligence and data to perform necessary business functions.
The failure of cyber or other information security controls, could result in a loss or disclosure of confidential information, damage to our reputation, additional costs and impair our ability to conduct business effectively We use technology algorithms, machine based learning, artificial intelligence and data to perform necessary business functions.
Our ability to adequately and effectively price products is affected by the evolving nature of consumer needs and preferences, market and regulatory dynamics, broader use of telematics-based rate segmentation and potential change in consumer demand. There is also significant competition for producers, such as exclusive and independent agents and their licensed sales professionals.
Risk Factors and Other Disclosures Our ability to adequately and effectively price and personalize products is affected by the evolving nature of consumer needs and preferences, market and regulatory dynamics, broader use of telematics-based rate segmentation and potential change in consumer demand. There is also significant competition for producers, such as exclusive and independent agents and their licensed sales professionals.
Insurance and financial services Business, strategy and operations Macro, regulatory and risk environment Risks related to the insurance and financial services industries Risks related to Allstate’s business and operating model Risks that impact most companies • Loss cost estimates are complex and losses are unknown at the time policies are sold • Claim frequency and severity volatility • Catastrophes and severe weather • Ability to obtain approval for rate increases • Investment results are subject to market volatility and valuation judgments • Highly competitive industry • Changing consumer preferences • New or changing technologies • Ineffective Transformative Growth strategy • Ability to maintain catastrophe reinsurance programs and limits • Fluctuations in financial strength and ratings • Loss of key business relationships • Ability to attract, develop and retain talent • Adverse changes in economic and capital market conditions • Large-scale disruptive or destabilizing events • Cybersecurity and privacy events • Changing climate conditions • Evolving environmental, social and governance expectations and standards • Regulatory and political changes The Allstate Corporation Board of Directors (“Allstate Board”) has overall responsibility for oversight of Management’s design and implementation of our Enterprise Risk and Return Management (“ERRM”) framework that manages the business on an integrated basis following risk and return principles.
Insurance and financial services Business, strategy and operations Macro, regulatory and risk environment Risks related to the insurance and financial services industries Risks related to Allstate’s business and operating model Risks that impact most companies • Complexity and uncertainty of loss cost estimates and reserves • Claim frequency and severity volatility • Catastrophes and severe weather • Ability to obtain approval for rate increases or new products • Investment results are subject to market volatility and valuation judgments • Highly competitive industry • Changing consumer preferences • New or changing technologies • Ineffective Transformative Growth strategy • Ability to maintain catastrophe reinsurance programs and limits • Fluctuations in financial strength and ratings • Loss of key business relationships • Cybersecurity and privacy events • Ability to attract, develop and retain talent • Adverse changes in economic and capital market conditions • Large-scale disruptive or destabilizing events • Changing climate conditions • Evolving environmental and social expectations of stakeholders • Regulatory and political changes The Allstate Corporation Board of Directors (“Allstate Board”) has overall responsibility for oversight of Management’s design and implementation of our Enterprise Risk and Return Management (“ERRM”) framework that manages the business on an integrated basis following risk and return principles.
Misconduct or fraudulent acts by employees, agents and third parties may expose us to financial loss, disruption of business, regulatory assessments and reputational harm The company and the insurance industry are susceptible to past and future misconduct or fraudulent activities by employees, representative agents, vendors, customers and other third parties.
Misconduct or fraudulent acts by employees, agents and third parties may expose us to financial loss, disruption of business, regulatory assessments and reputational harm The Company is susceptible to past and future misconduct or fraudulent activities by employees, representative agents, vendors, customers and other third parties.
Adjustments to the business structure, size and underwriting practices in markets with significant severe weather and catastrophe risk exposure could adversely impact premium growth rates and retention. The ability of our subsidiaries to pay dividends may affect our liquidity and ability to meet our obligations The Allstate Corporation is a holding company with no significant operations.
Risk Factors and Other Disclosures size and underwriting practices in markets with significant severe weather and catastrophe risk exposure could adversely impact premium growth rates and retention. The ability of our subsidiaries to pay dividends may affect our liquidity and ability to meet our obligations The Allstate Corporation is a holding company with no significant operations.
Additionally, if plans to restore and recover critical systems, data and operations along with vendor contingencies do not sufficiently address a vendor-related business interruption, we may suffer operational impairments and financial losses.
Additionally, if plans to restore and recover critical systems, data and operations along with vendor contingencies do not sufficiently address business interruptions, we may suffer operational impairments and financial losses.
The following factors have and may continue to impact claim severity for auto bodily injury, auto physical damage (including collision and property damage) and homeowners coverages: • Bodily injury — more severe accidents, an increase in claims with attorney representation, higher medical consumption, and inflation • Vehicle physical damage — inflation, supply chain disruptions, labor shortages and the imposition of tariffs impacting used vehicle and parts prices, labor rates, length of claim resolution, delays in the receipt of third-party carrier claims, and a higher mix of total losses • Homeowners — inflation in the construction industry, building materials and home furnishings, changes in the mix of loss type, changes in building codes and other economic and environmental factors, including short-term supply imbalances for services, supplies in areas affected by catastrophes and the imposition of tariffs Catastrophes and severe weather events may subject us to significant losses Catastrophic events could adversely affect operating results and cause them to vary significantly from one period to the next.
The following factors have and may continue to impact claim severity for auto bodily injury, auto physical damage (including collision and property damage) and homeowners coverages: • Bodily injury — more severe accidents, an increase in claims with attorney representation, higher medical consumption and inflation • Vehicle physical damage — inflation, supply chain disruptions, labor shortages, labor rates, tariffs impacting vehicle and parts prices, increased repair costs for components that have embedded advanced driver assistance systems such as cameras and sensors, length of claim resolution, delays in the receipt of third-party carrier claims, and a higher mix of total losses • Homeowners — inflation in the construction industry, building materials and home furnishings, changes in the mix of loss type, changes in building codes and other economic and environmental factors, including short-term supply imbalances for services, supplies in areas affected by catastrophes, labor shortages, labor rates and tariffs Catastrophes and severe weather events may subject us to significant losses Catastrophic events could adversely affect operating results and cause them to vary significantly from one period to the next.
Our ability to attract, develop, and retain talent to maintain appropriate staffing levels and a successful work culture is critical to our success Competition for qualified employees with highly specialized knowledge in areas such as underwriting, data and analytics, technology and cybersecurity, is intense and we have experienced increased competition in hiring and retaining employees.
Our ability to attract, develop, and retain talent to maintain appropriate staffing levels and a successful work culture is critical to our success Competition for qualified employees with highly specialized knowledge in areas such as underwriting, data and analytics, technology and cybersecurity, is intense.
The degree of judgment required in determining fair values increases when: • Market observable information is less readily available • The use of different valuation assumptions may have a material effect on the assets’ fair values • Changing market conditions could materially affect the fair value of investments Additionally, the determination of the amount of credit losses varies by investment type and is based on ongoing evaluation and assessment of known and inherent risks associated with the respective asset class or investment.
Risk Factors and Other Disclosures increases when: • Market observable information is less readily available • The use of different valuation assumptions may have a material effect on the assets’ fair values • Changing market conditions could materially affect the fair value of investments Additionally, the determination of the amount of credit losses varies by investment type and is based on ongoing evaluation and assessment of known and inherent risks associated with the respective asset class or investment.
Changes in regulatory standards regarding underwriting and rates could also affect the ability to predict future losses and could impact profitability. Competitors can alter underwriting standards, lower prices, have more sophisticated pricing models and increase advertising, which could result in lower growth, profitability or decrease our competitive position.
Changes in regulatory standards regarding underwriting and rates could also affect the ability to predict future losses and could impact profitability. Competitors may alter underwriting standards, lower prices, have more sophisticated pricing models, introduce new products and features and increase advertising, which could result in lower growth and retention and decrease our competitive position.
Events like these may jeopardize the information processed and stored in, and transmitted through, computer systems and networks and otherwise cause interruptions or malfunctions in operations, which could result in damage to reputation, financial losses, litigation, increased costs, regulatory penalties or customer dissatisfaction.
Events like these may jeopardize the information processed and stored in, and transmitted through, computer systems and networks and otherwise cause interruptions or malfunctions in operations, which could result in damage to reputation, financial losses, litigation, increased costs, regulatory penalties or customer dissatisfaction. These risks may increase in the future as threats become more sophisticated.
Service providers and other vendors may also be subject to cybersecurity risks and our efforts to review and assess their security controls may not be successful in preventing or mitigating the effects of such events.
Risk Factors and Other Disclosures also be subject to cybersecurity risks and our efforts to review and assess their security controls may not be successful in preventing or mitigating the effects of such events.
A regulatory environment that requires rate increases to be approved, can dictate underwriting practices and mandate participation in loss sharing arrangements, may adversely affect results of operations and financial condition Regulatory approval of rate increases, especially during inflationary periods, may restrict rate changes that may be required to achieve targeted levels of profitability and returns on equity.
A regulatory environment that requires rates and products to be approved, can dictate underwriting practices and mandate participation in loss sharing arrangements, may increase the time to market of rate increases, new products or use of advanced technologies and adversely affect results of operations and financial condition Regulatory approval of rates, especially during inflationary periods, may restrict rate changes that may be required to achieve targeted levels of profitability and returns on equity.
Customers and potential customers may choose not to do business with us and potential applicants and employees may choose not to work for us based on ESG practices and related policies and actions. We may face adverse regulatory, investor, media, or public scrutiny leading to business, reputational, or legal challenges.
Existing and potential customers and business partners may choose not to do business with us and potential applicants and employees may choose not to work for us based on our business practices, policies and actions. We may face adverse regulatory, investor, media, political or other scrutiny leading to business, reputational or legal challenges.
These transactions may require us to provide technology and administrative services or may result in continued financial involvement in the divested businesses, such as through transition services agreements, reinsurance, guarantees or other financial arrangements, following the transaction.
Risk Factors and Other Disclosures We also may divest businesses from time to time. These transactions may require us to provide technology and administrative services or may result in continued financial involvement in the divested businesses, such as through transition services agreements, reinsurance, guarantees or other financial arrangements, following the transaction.
A growing number of state laws, enforced by a variety of regulators, on issues such as privacy and cybersecurity may also increase expenses and require additional compliance activities. The Federal Insurance Office and Financial Stability Oversight Council have been established, and the federal government may enact reforms that affect the state insurance regulatory framework.
In addition, state laws, enforced by a variety of regulators, on issues such as privacy and cybersecurity may also increase expenses and require additional compliance activities. The Federal Insurance Office, Financial Stability Oversight Council or other federal government agencies may enact reforms that affect the state insurance regulatory framework.
Our ability to successfully deploy new technologies may adversely impact our business Technological advancements and innovation are occurring at a rapid pace that may continue to accelerate. Nontraditional competitors could enter the insurance market and further accelerate these trends.
Our competitive position depends on our ability to successfully deploy advanced technologies Technological advancements and innovation are occurring at a rapid pace that may continue to accelerate. Nontraditional competitors could enter the insurance market and further accelerate these trends.
Factors that affect our ability to attract, develop and retain employees and maintain a successful work culture include: • Compensation and benefits • Training and employee engagement programs • Reputation as a successful business with a culture of fair hiring, and of training and promoting qualified employees • Recognition of and response to changing trends and other circumstances that affect employees • Physical workspaces and return to office requirements The unexpected loss of key personnel could have a material adverse impact on our business because of the loss of their skills, knowledge of our products and offerings and years of industry experience and, in some cases, the difficulty of promptly finding qualified replacement personnel.
Factors that affect our ability to attract, develop and retain employees and maintain a successful work culture include: • Compensation and benefits • Training and employee engagement programs • Reputation as a successful business with a culture of fair hiring, and of training and promoting qualified employees • Hybrid work models, the design and location of physical workspaces and expectations for employee collaboration • Recognition of and response to changing trends and other circumstances that affect employees • Ability to develop employees and create new roles that align with our automation priorities and deliver greater levels of customer value The unexpected loss of key personnel could have a material adverse impact on our business because of the loss of their skills, knowledge of our products and offerings and years of industry experience and, in some cases, the difficulty of promptly finding qualified replacement personnel.
Risk Factors and Other Disclosures and allowing consumers to interact with us how they choose. Some competitors may offer a broader array of products than we do, or a more favorable customer experience. The business could be impacted by our ability to attract, serve and retain customers through distribution channels that they prefer.
Some competitors may offer a broader or more personalized array of products than we do, or a more favorable customer experience. The business could be impacted by our ability to attract, serve and retain customers through distribution channels that they prefer.
Some of the assets in our investment portfolio may be adversely affected by declines in the equity markets, changes in interest rates, reduced liquidity and economic activity caused by such events. Additionally, such events could have a material effect on sales, liquidity and operating results.
Some of the assets in our investment portfolio may be adversely affected by declines in the equity markets, changes in interest rates, reduced liquidity and economic activity caused by such events. Additionally, such events could have a material effect on sales, liquidity and operating results. 28 www.allstate.com 2025 Form 10-K Part I - Item 1A.
Efforts to meet evolving environmental, social, and governance standards may not meet stakeholders' expectations Some existing or potential investors, customers, employees, regulators, and other stakeholders evaluate business practices according to a variety of environmental, social and governance (“ESG”) standards and expectations, including those related to climate change, inclusive diversity and equity, data privacy, and the well-being of our employees.
Our practices relating to environmental and social matters may not meet stakeholders' expectations Some existing or potential investors, customers, employees, regulators, and other stakeholders evaluate business practices according to a variety of environmental and social standards and expectations, including those related to climate change and inclusive diversity.
Our catastrophe management strategy may adversely affect premium growth Catastrophe risk management actions have led us to reduce the size of the homeowners business in certain states, including customers with auto and other personal lines products, and may negatively impact future sales.
Our catastrophe management strategy may adversely affect premium growth Catastrophe risk management actions have led us to reduce the size of the homeowners business in certain states, including customers with auto and other personal lines products, and may negatively impact future sales. Adjustments to the business structure, The Allstate Corporation 25 2025 Form 10-K Part I - Item 1A.
Changes in technology related to collection and application of data regarding customers could expose us to regulatory or legal actions and may have a material adverse effect on our business, reputation, results of operations and financial condition. Changes in technology and customer preferences may impact the ways in which we interact, do business with customers and design products.
Changes in technology related to collection and application of data regarding customers could expose us to regulatory or legal actions and may have a material adverse effect on our business, reputation, results of operations and financial condition.
Increases in the insured values of covered property, geographic concentration and the number of policyholders exposed to certain events could increase the severity of claims from catastrophic and severe weather events.
Increases in the insured values of covered property, geographic concentration and the number of policyholders exposed to certain events could increase the severity of claims from catastrophic and severe weather events. Where appropriate and supportable, the Company pursues subrogation of its losses resulting from catastrophes and severe weather events.
When estimating credit loss allowances, historical loss trends, consideration of current conditions, and forecasts may not be indicative of future changes in credit losses and additional amounts may need to be recorded in the future. The Allstate Corporation 23 2024 Form 10-K Part I - Item 1A.
When estimating credit loss allowances, historical loss trends, consideration of current conditions and forecasts may not be indicative of future changes in credit losses and additional amounts may need to be recorded in the future.
The limitations are generally based on statutory income and surplus. In addition, competitive pressures generally require the The Allstate Corporation 25 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures subsidiaries to maintain insurance financial strength ratings. These restrictions and other regulatory requirements may affect the ability of subsidiaries to make dividend payments.
The limitations are generally based on statutory income and surplus. In addition, competitive pressures generally require the subsidiaries to maintain insurance financial strength ratings. These restrictions and other regulatory requirements may affect the ability of subsidiaries to make dividend payments.
We may incur substantial costs and other negative consequences if any of these risks occur, including an adverse effect on our business, results of operations and financial condition.
Risk Factors and Other Disclosures penalties for non-compliance based on consolidated enterprise revenue. We may incur substantial costs and other negative consequences if any of these risks occur, including an adverse effect on our business, results of operations and financial condition.
Additionally, sophisticated pricing algorithms make it difficult to determine what price potential customers would pay across competitors. Pricing increases could adversely impact customer retention and ability to attract new business.
Additionally, sophisticated pricing algorithms make it difficult to determine what price potential customers would pay across competitors. Pricing increases could adversely impact customer retention and ability to attract new business. 24 www.allstate.com 2025 Form 10-K Part I - Item 1A.
Certain states require an insurer to participate in guaranty funds for impaired or insolvent insurance companies. These funds periodically assess losses against all insurance companies doing business in the state. The results of operations and financial condition could be adversely affected by any of these factors.
These funds periodically assess losses against all insurance companies doing business in the state. The results of operations and financial condition could be adversely affected by any of these factors.
Executing our strategy to advance and innovate technology has and may continue to impact our workforce as we require new and different skills, particularly those in areas such as digital, data and analytics and technology to achieve our strategic goals. Advancements in technology and changes in consumer preferences may also impact our workforce needs in the future.
Executing our strategy to advance and innovate technology, including leveraging artificial intelligence, has and may continue to impact our workforce as we require new and different skills to achieve our strategic goals. Advancements in technology, business process redesign and changes in consumer preferences may also impact our workforce needs in the future.
Our business may also be adversely impacted by new or changing technologies Technological changes, such as autonomous or partially autonomous vehicles or technologies that facilitate ride, car or home sharing could disrupt the demand for products from current customers, create coverage issues, impact the frequency or severity of losses, or reduce the size of the automobile insurance market causing our auto insurance business to decline.
Our business may also be adversely impacted by new or changing technologies and new business models affecting the auto insurance industry Increasing adoption of newer technologies such as advanced driver assistance systems and autonomous vehicles or changes in business models that increase ride or car sharing could disrupt the demand for products, create coverage issues, impact the frequency or severity of losses, or reduce the size of the automobile insurance market causing our auto insurance business to decline.
If a significant number of employees were unavailable or unable to access systems due to such a disaster or event, our ability to effectively conduct business could be severely compromised. 28 www.allstate.com 2024 Form 10-K Part I - Item 1A.
If a significant number of employees were unavailable or unable to access systems due to such a disaster or event, our ability to effectively conduct business could be severely compromised.
To the extent the MCCA’s current and future assessments are insufficient to reimburse its ultimate obligation on existing claims to member companies, our ability to obtain the 100% indemnification of ultimate losses could be impaired. We also participate in the Federal Government National Flood Insurance Program.
To the extent the MCCA’s current and future assessments are insufficient to reimburse its ultimate obligation on existing claims to member companies, our ability to obtain the 100% indemnification for ultimate losses could be impaired. We also sell and service NFIP flood policies as an agent of FEMA.
As a result, if we do not manage these integrations effectively, the quality of our products as well as relationships with customers and partners may suffer and could result in the company not achieving returns on its investment at the level projected at acquisition. We also may divest businesses from time to time.
As a result, if we do not manage these integrations effectively, the quality of our products as well as relationships with customers and partners may suffer and could result in the Company not achieving returns on its investment at the level projected at acquisition. 26 www.allstate.com 2025 Form 10-K Part I - Item 1A.
These activities could include: • Fraud against the company, its employees and its customers through illegal or prohibited activities • Unauthorized acts or representations, unauthorized use or disclosure of personal or proprietary information, deception, and misappropriation of funds or other benefits 30 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures Item 1B.
These activities could include: • Fraud against the Company, its employees and its customers through illegal or prohibited activities • Unauthorized acts or representations, unauthorized use or disclosure of personal or proprietary information, deception, and misappropriation of funds or other benefits • Violations of the Company’s Global Code of Business Conduct, including public-facing statements by employees that violate our policies 30 www.allstate.com 2025 Form 10-K Part I - Item 1A.
Business, strategy and operations We operate in markets that are highly competitive Markets in which we operate are highly competitive, and we must continually allocate resources to refine and improve products and services to maintain our reputation, enhance brand perception, and remain competitive.
Business, strategy and operations We operate in markets that are highly competitive Markets in which we operate are highly competitive, and we must continually refine and improve products and services to maintain our reputation, enhance brand perception, and remain competitive. Negative publicity or other negative events could harm our reputation and brand perception, adversely impacting customer, employee and other relationships.
Declines in consumer confidence and spending, including internationally, and periods of high unemployment or labor shortages could change consumer behaviors and impact the sales of our consumer protection plan products and other products and services we sell.
Our assumptions about portfolio diversification may not hold across market conditions, which could lead to heightened investment losses. Declines in consumer confidence and spending, including internationally, and periods of high unemployment or labor shortages could change consumer behaviors and impact the sales of our consumer protection plan products and other products and services we sell.
If third-party providers or we are found to have infringed a third-party intellectual property right, either of us could be enjoined from providing certain products or services or from utilizing and benefiting from certain methods, processes, copyrights, trademarks, trade secrets or licenses. Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement costly workarounds.
Any such claims and any resulting litigation could result in significant expense and liability. If third-party providers or we are found to have infringed a third-party intellectual property right, either of us could be enjoined from providing certain products or services or from utilizing and benefiting from certain methods, processes, copyrights, trademarks, trade secrets or licenses.
The conditions that would have the largest impact on our business include: • Low or negative economic growth • Interest rate levels • Rising inflation increasing claims and claims expense • Protectionist trade policy actions, such as tariffs and quotas • Substantial increases in delinquencies or defaults on debt • Significant downturns in the market value or liquidity of our investment portfolio • Prolonged downturn in equity valuations The Allstate Corporation 27 2024 Form 10-K Part I - Item 1A.
The conditions that may have the largest impact on our business include: • Low or negative economic growth • Interest rate levels • Rising inflation increasing claims and claims expense • Trade policy actions, such as tariffs and quotas • Substantial increases in delinquencies or defaults on debt • Significant downturns in the market value or liquidity of our investment portfolio • Prolonged downturn in equity valuations • Reduced consumer spending and business investment Stressed conditions, volatility and disruptions in global capital markets or financial asset classes could adversely affect our investment portfolio.
This could necessitate changes to practices that may adversely The Allstate Corporation 29 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures impact the business. In some cases, state insurance laws and regulations are generally intended to protect or benefit purchasers or users of insurance products, not holders of securities that we issue.
This could necessitate changes to practices that may adversely impact the business. In some cases, state insurance laws and regulations are generally intended to protect or benefit purchasers or users of insurance products, not holders of securities that we issue. These laws and regulations may limit the ability to grow or to improve the profitability of the business.
Changing consumer preferences may adversely impact the demand for our products which may adversely impact the business Growth and retention may be impacted if customer preferences change and we are unable to effectively adapt our business model, technology and processes, including maintaining competitive products 24 www.allstate.com 2024 Form 10-K Part I - Item 1A.
Changing consumer preferences may adversely impact the demand for our products which may adversely impact the business Growth and retention may be impacted if customer preferences change and we are unable to effectively adapt our business model, technology and processes, including maintaining competitive products and allowing consumers to interact with us how they choose.
In addition, governments outside of the U.S. have in the past and may in the future adopt laws and regulations applicable to our non-U.S. subsidiaries, including laws related to privacy, data security, human rights and the environment, that carry penalties for non-compliance based on consolidated enterprise revenue.
In addition, governments outside of the U.S. have in the past and may in the future adopt laws and regulations applicable to our non-U.S. subsidiaries, including laws related to privacy, data security, human rights and the environment, that carry The Allstate Corporation 29 2025 Form 10-K Part I - Item 1A.
Risk Factors and Other Disclosures We may be subject to the risks and costs associated with intellectual property infringement, misappropriation and third-party claims We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property. Third parties may infringe or misappropriate our intellectual property.
If the acquiring companies do not perform under the arrangements, financial results could be negatively impacted. We may be subject to the risks and costs associated with intellectual property infringement, misappropriation and third-party claims We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property.
Regulatory restrictions on the use of artificial intelligence may impose additional compliance or reporting obligations and may materially adversely affect our operations or ability to write business profitably in one or more jurisdictions. Technological changes may require extensive modifications to our systems and processes and extensive coordination with and reliance on the systems and operations of third parties.
The maturity and effectiveness of forms of artificial intelligence technology are rapidly evolving. Regulatory restrictions on the use or development of artificial intelligence may impose additional compliance or reporting obligations, which may materially adversely affect our operations or ability to write business profitably in one or more jurisdictions.
We may have to litigate to enforce and protect intellectual property and to determine its scope, validity or enforceability, which could divert significant resources and prove unsuccessful. An inability to protect intellectual property or an inability to successfully defend against a claim of intellectual property infringement could have a material effect on our business.
Third parties may infringe or misappropriate our intellectual property. We may have to litigate to enforce and protect intellectual property and to determine its scope, validity or enforceability, which could divert significant resources and prove unsuccessful.
Additionally, these investments are less liquid than similar, publicly traded investments and a decline in market liquidity could impact our ability to sell them at their current carrying values. Declining equity markets or increases in interest rates or credit spreads could cause the value of the investments in our pension plans to decrease.
Additionally, these investments are less liquid than publicly traded investments and although secondary markets exist, they are limited and may require sales at significant discounts to carrying value based on market conditions. Declining equity markets or increases in interest rates or credit spreads could cause the value of the investments in our pension plans to decrease.
Our operations, vendors and business partnerships outside of the United States are subject to additional regulatory requirements and operating and political risks.
We conduct business outside of the United States, including customer, vendor and business partner relationships, process and information technology operations, and outsourcing of certain business functions. Our operations, vendors and business partnerships outside of the U.S. are subject to additional regulatory requirements and operating and political risks.
Growth and retention may be materially affected if we are unable to attract and retain effective producers or if those producers are unable to attract and retain their licensed sales professionals or customers. Many voluntary benefits contracts are renewed annually and consumer protection plan contracts are generally multi-year, but renewals occur on a rolling basis.
Growth and retention may be materially affected if we are unable to attract and retain effective producers or if those producers are unable to attract and retain their licensed sales professionals or customers.
We may not be able to respond effectively or in a timely manner to these changes, including developing and deploying customer-facing technology to address these changing preferences and maintaining competitive technology, which could have an adverse effect on the results of operations and financial condition.
Changes in technology and customer preferences may impact the ways in which we invest in marketing and customer acquisition, interact and do business with customers and design products. We may not be able to leverage new technologies effectively or in a timely manner, which could have an adverse effect on the results of operations and financial condition.
Laws and regulations of many states also limit an insurer’s ability to withdraw from one or more lines of insurance, except pursuant to a plan that is approved by the state 22 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures insurance department.
Laws and regulations of many states also limit an insurer’s ability to withdraw from one or more lines of insurance, except pursuant to a plan that is approved by the state insurance department. Certain states require an insurer to participate in guaranty funds for impaired or insolvent insurance companies.
The failure of our or third-party vendors’ business continuity plans to restore operations in a timely manner could result in business disruption and a financial impact The occurrence of a disaster or event that results in the shutdown, disruption, degradation or unavailability of one or more of systems or facilities, unanticipated problems with disaster recovery processes, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on results of operations and financial condition, particularly if those events affect computer-based data processing, transmission, storage, and retrieval systems or destroy data.
Lack of operational resiliency or the failure to restore business operations after a significant operational event could have an adverse effect on our ability to conduct business, reputation and on results of operations and financial condition, particularly if those events affect computer-based data processing, transmission, storage, and retrieval systems or destroy data.
Any of these scenarios could have a material effect on the business and results of operations.
Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement costly workarounds. Any of these scenarios could have a material effect on the business and results of operations.
Due to significant variability associated with future changing climate conditions, we are unable to predict the impact climate change will have on our businesses.
Climate change may also impair our ability to identify and quantify potential losses and offer customers products at an affordable price. The investment portfolio is also subject to the effects of climate change. Due to significant variability associated with future climate conditions, we are unable to predict the impact climate change will have on our businesses.
The risk of cyberattacks could be exacerbated by geopolitical tensions, including hostile actions taken by state-sponsored and terrorist organizations. Use of third-party services (e.g., cloud technology, software as a service and artificial intelligence) can make it more difficult to identify and respond to cyberattacks.
The risk of cyberattacks could be exacerbated by geopolitical tensions, including hostile actions taken by state-sponsored and terrorist organizations.
We may be subject to claims by third parties for patent, trademark or copyright infringement or breach of usage rights. Any such claims and any resulting litigation could result in significant expense and liability.
An inability to protect intellectual property or an inability to successfully defend against a claim of intellectual property infringement could have a material effect on our business. We may be subject to claims by third parties for patent, trademark or copyright infringement or breach of usage rights.
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Increases in claim severity can arise from numerous causes that are inherently difficult to predict.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe ISC monitors, makes mitigating decisions about, and escalates information security risks that are outside the Company’s established risk tolerance. Additionally, it provides executive sponsorship of information security controls and oversees the development and review of the information security policy and enterprise security standards.
Biggest changeAdditionally, she provides executive sponsorship of information security controls and oversees the development and review of the information security policy and enterprise security standards. Information Security Program Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats.
The Chief Information Security Officer (“CISO”) regularly updates the Audit Committee and Allstate Board on Information Security Program status, cybersecurity risk management, the control environment, emerging threat intelligence and key risk and performance measurements. Our CISO is responsible for the development and execution of the security strategy which protects Allstate’s information from external and internal cybersecurity threats.
The Chief Information Security Officer (“CISO”) regularly updates the Audit Committee and Allstate Board on the Program status, cybersecurity risk management, the control environment, emerging threat intelligence and key risk and performance measurements. Our CISO is responsible for the development and execution of the security strategy which protects Allstate’s information from external and internal cybersecurity threats.
Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards. We also have a cybersecurity resiliency strategy that will enhance our ability to anticipate, withstand and recover from cybersecurity attacks and maintain the availability of our critical business operations.
Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards. Allstate also has a cybersecurity resiliency strategy that enhances our ability to anticipate, withstand and recover from cybersecurity attacks and maintain the availability of our critical business operations.
Information Security Program Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats. The Company’s Program uses a risk-based, defense-in-depth approach to identify, assess and manage cybersecurity risks to the Company’s information assets and systems, enabling the business to achieve its objectives.
The Company’s Program uses a risk-based, defense-in-depth approach to identify, assess and manage cybersecurity risks to the Company’s information assets and systems, enabling the business to achieve its objectives.
Removed
He has more than 20 years of information security leadership experience. Risk management and strategy The Enterprise Risk and Return Council has delegated the power and authority to manage cybersecurity risks to the Information Security Council (“ISC”). The CISO chairs the ISC, with senior management representation from across the Company including representatives from Privacy, Legal and Technology.
Added
She has over 16 years of experience leading cybersecurity and digital transformation in the financial services industry and government. Risk management and strategy The Enterprise Risk and Return Council manages cybersecurity risks. The CISO monitors, makes mitigating decisions about, and escalates information security risks that are outside the Company’s established risk tolerance.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties In North America, we occupy approximately 685 retail stores, administrative, data processing, claims handling and other support facilities that total 710 thousand square feet owned and 3.9 million square feet leased. Outside North America, we own 1 property in Northern Ireland and lease locations in India, the United Kingdom and Australia.
Biggest changeItem 2. Properties In North America, we occupy approximately 645 retail stores, administrative, data processing, claims handling and other support facilities that total 501 thousand square feet owned and 2.6 million square feet leased. Outside North America, we own 1 property in Northern Ireland and lease locations in India, the United Kingdom and Australia.
Removed
The locations where Allstate exclusive agencies operate in the U.S. are typically leased by the agencies.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings Information required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 16 of the consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. The Allstate Corporation 31 2024 Form 10-K Part II
Biggest changeItem 3. Legal Proceedings Information required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 14 of the consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. The Allstate Corporation 31 2025 Form 10-K Part II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeValue at each year-end of $100 initial investment made on December 31, 2019 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Allstate $ 100.00 $ 99.88 $ 109.75 $ 129.88 $ 138.11 $ 194.19 S&P P/C $ 100.00 $ 106.33 $ 124.95 $ 148.53 $ 164.49 $ 222.43 S&P 500 $ 100.00 $ 118.39 $ 152.34 $ 124.73 $ 157.48 $ 196.85 32 www.allstate.com 2024 Form 10-K Issuer purchases of equity securities Period Total number of shares (or units) purchased (1) Average price paid per share (or unit) Total number of shares (or units) purchased as part of publicly announced plans or programs Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs October 1, 2024 - October 31, 2024 Open Market Purchases 271 $ 190.57 — November 1, 2024 - November 30, 2024 Open Market Purchases 5,140 $ 184.15 — December 1, 2024 - December 31, 2024 Open Market Purchases 2,908 $ 204.01 — Total 8,319 $ 191.30 — $ — (1) In accordance with the terms of its equity compensation plans, Allstate acquired the following shares in connection with the vesting of restricted stock units and performance stock awards and the exercise of stock options held by employees and/or directors.
Biggest changeValue at each year-end of $100 initial investment made on December 31, 2020 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Allstate $ 100.00 $ 109.88 $ 130.03 $ 138.27 $ 194.41 $ 214.07 S&P P/C $ 100.00 $ 117.51 $ 139.69 $ 154.70 $ 209.20 $ 228.84 S&P 500 $ 100.00 $ 128.68 $ 105.36 $ 133.03 $ 166.28 $ 195.98 32 www.allstate.com 2025 Form 10-K Issuer purchases of equity securities Period Total number of shares purchased (1) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs (2) Maximum approximate dollar value that may yet be purchased under the plans or programs (3) October 1, 2025 - October 31, 2025 Open Market Purchases 813,575 $ 200.10 813,003 November 1, 2025 - November 30, 2025 Open Market Purchases 628,730 $ 206.44 623,716 December 1, 2025 - December 31, 2025 Open Market Purchases 693,725 $ 207.20 691,474 Total 2,136,030 $ 204.27 2,128,193 $ 260 million (1) In accordance with the terms of its equity compensation plans, Allstate acquired the following shares in connection with the vesting of restricted stock units and performance stock awards and the exercise of stock options held by employees and/or directors.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities As of January 31, 2025, there were 54,363 holders of record of The Allstate Corporation’s common stock. The principal market for the common stock is the New York Stock Exchange, where our common stock trades under the trading symbol “ALL”.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities As of January 30, 2026, there were 51,225 holders of record of The Allstate Corporation’s common stock. The principal market for the common stock is the New York Stock Exchange (“NYSE”), where our common stock trades under the trading symbol “ALL”.
Common stock performance graph The following performance graph compares the cumulative total shareholder return on Allstate common stock for a five-year period (December 31, 2019 to December 31, 2024) with the cumulative total return of the S&P Property and Casualty Insurance Index (S&P P/C) and the S&P 500 stock index.
Our common stock is also listed on the NYSE Texas. Common stock performance graph The following performance graph compares the cumulative total shareholder return on Allstate common stock for a five-year period (December 31, 2020 to December 31, 2025) with the cumulative total return of the S&P Property and Casualty Insurance Index (S&P P/C) and the S&P 500 stock index.
The shares were acquired in satisfaction of withholding taxes due upon exercise or vesting and in payment of the exercise price of the options. October: 271 November: 5,140 December: 2,908 Item 6. [Reserved] None. The Allstate Corporation 33 2024 Form 10-K
The shares were acquired in satisfaction of withholding taxes due upon exercise or vesting and in payment of the exercise price of the options.
Removed
Our common stock is also listed on the Chicago Stock Exchange.
Added
October: 572 November: 5,014 December: 2,251 (2) From time to time, repurchases under our programs are executed under the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934.
Added
(3) On February 26, 2025, the Board of Directors authorized a common share repurchase program for $1.50 billion which must be completed by September 30, 2026 . Item 6. [Reserved] None. The Allstate Corporation 33 2025 Form 10-K

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeLoss ratios by line of business For the years ended December 31, Loss ratio Effect of catastrophe losses Effect of prior year reserve reestimates Effect of catastrophe losses included in prior year reserve reestimates 2024 2023 2022 2024 2023 2022 2024 2023 2022 2024 2023 2022 Auto 72.7 82.8 87.2 2.2 2.1 1.7 (1.0) 0.7 4.0 (0.1) (0.2) (0.2) Homeowners 68.1 85.4 71.1 27.8 38.6 21.6 (2.9) 0.8 1.9 (2.4) 0.3 0.7 Other personal lines 85.9 82.0 79.7 12.8 14.6 12.3 7.7 0.8 (1.5) (0.2) (0.8) 0.1 Commercial lines 111.5 105.8 120.7 2.8 3.7 2.5 27.3 10.4 24.2 (0.8) 1.0 (0.1) Other business lines 55.8 48.4 39.5 11.9 7.5 9.1 — 2.2 (1.2) — — 0.8 Total 72.4 83.3 83.3 9.2 11.6 7.1 (0.7) 1.0 3.6 (0.7) — — Auto underwriting results For the periods ended 2024 2023 2022 ($ in millions, except ratios) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Underwriting income (loss) $ 603 $ 486 $ 370 $ 351 $ 93 $ (178) $ (678) $ (346) $ (974) $ (1,315) $ (578) $ (147) Loss ratio 69.3 71.9 74.2 75.4 78.5 81.4 87.9 83.4 90.6 95.3 84.9 77.6 Effect of prior year non-catastrophe reserve reestimates (0.4) (0.6) (1.9) (0.7) 1.7 0.3 1.4 (0.1) 2.3 8.5 3.8 2.1 Frequency and severity are influenced by: • Supply chain disruptions and labor shortages • Mix of repairable losses and total losses • Value of total losses due to changes in used car prices • Changes in medical inflation and consumption • Number of claims with attorney representation • Labor and part cost increases • Changes in commuting activity • Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types • Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods The quarterly auto loss ratio has been more variable due to these and additional factors discussed below. 44 www.allstate.com 2024 Form 10-K Allstate Protection Auto loss ratio decreased 10.1 points in 2024 compared to 2023 driven by increased earned premiums and lower non-catastrophe losses compared to the prior year.
Biggest changeLoss ratios For the years ended December 31, Loss ratio Effect of catastrophe losses Effect of prior year reserve reestimates Effect of catastrophe losses included in prior year reserve reestimates 2025 2024 2023 2025 2024 2023 2025 2024 2023 2025 2024 2023 Auto 63.4 72.7 82.8 1.4 2.2 2.1 (4.9) (1.0) 0.7 (0.1) (0.1) (0.2) Homeowners 62.8 68.1 85.4 26.6 27.8 38.6 (0.1) (2.9) 0.8 0.3 (2.4) 0.3 Other personal lines 77.4 85.9 82.0 9.0 12.8 14.6 4.1 7.7 0.8 (0.4) (0.2) (0.8) Commercial lines 40.3 111.5 105.8 — 2.8 3.7 (35.3) 27.3 10.4 (0.2) (0.8) 1.0 Other business lines 34.7 55.8 48.4 9.5 11.9 7.5 (6.7) — 2.2 — — — Total 63.5 72.4 83.3 8.6 9.2 11.6 (3.4) (0.7) 1.0 — (0.7) — Auto loss ratio decreased 9.3 points in 2025 compared to 2024 driven by increased earned premiums, lower claim frequency and the benefit of prior year non-catastrophe reserve releases.
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.
The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned: • Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense • Effect of prior year reserve reestimates on combined ratio • Effect of restructuring and related charges on combined ratio • Effect of amortization of purchased intangibles on combined ratio • Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment Premium measures and statistics are used to analyze our premium trends and are calculated as follows: • PIF : policy counts are based on items rather than customers.
Key risks are assessed and reported through comprehensive ERRM reports prepared for senior management and the RRC. These risk summary reports communicate the alignment of Allstate’s risk profile with risk and return principles, while providing a perspective on risk positioning. Discussion promotes active engagement with management and the RRC.
Key risks are assessed and reported through comprehensive ERRM reports prepared for senior management and the RRC. These summary reports communicate the alignment of Allstate’s risk profile with risk and return principles, while providing a perspective on risk positioning. Discussion promotes active engagement with management and the RRC.
A summary of our process to manage each of our major risk categories follows: Strategic risk and return management encompasses risks and opportunities associated with long-term business planning and strategy setting in the context of the evolving market environment.
A summary of our process to manage each of our major risk and return categories follows: Strategic risk and return management encompasses risks and opportunities associated with long-term business planning and strategy setting in the context of the evolving market environment.
How reserve estimates are established and updated Reserve estimates are developed at a detailed level, and the results are aggregated to form a consolidated reserve estimate. The detailed estimates include each line of insurance, major components of losses (such as coverages and perils), major states or groups of states and for reported losses and IBNR.
How reserve estimates are established and updated Reserve estimates are developed at a detailed level, and the results are aggregated to form a consolidated reserve estimate. The detailed estimates include each line of insurance, major components of losses (such as coverages and perils), major states or groups of states for reported losses and IBNR.
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.
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.
Run-off Property-Liability reserve estimates Characteristics of Run-off exposure Our exposure to asbestos, environmental and other run-off claims arise principally from assumed reinsurance coverage written during the 1960s through the mid-1980s, including reinsurance on primary insurance written on large U.S. companies, and from direct excess commercial insurance written from 1972 through 1985, including substantial excess general liability coverages on large U.S. companies.
Run-off Property-Liability reserve estimates Characteristics of Run-off exposure Our exposure to asbestos, environmental and other run-off claims arise principally from assumed reinsurance coverage written from the 1960s through the mid-1980s, including reinsurance on primary insurance written on large U.S. companies, and from direct excess commercial insurance written from 1972 through 1985, including substantial excess general liability coverages on large U.S. companies.
Based on our Allstate brand products and coverages, historical experience, the statistical credibility of our extensive data and stochastic modeling of actuarial methodologies used to develop reserve estimates, we have derived standard deviations and the resulting pre-tax income for Allstate Protection reserves, excluding catastrophe losses, as shown below.
Based on our products and coverages, historical experience, the statistical credibility of our extensive data and stochastic modeling of actuarial methodologies used to develop reserve estimates, we have derived standard deviations and the resulting pre-tax income for Allstate Protection reserves, excluding catastrophe losses, as shown below.
Additional exposure stems from direct primary commercial insurance written during the 1960s through the mid-1980s. Asbestos claims relate primarily to bodily injuries asserted by claimants who were exposed to asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs.
Additional exposure stems from direct primary commercial insurance written from the 1960s through the mid-1980s. Asbestos claims relate primarily to bodily injuries asserted by claimants who were exposed to asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs.
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 (“Fitch”) or a comparable internal rating.
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.
Reserves are reestimated quarterly and periodically throughout the year, by combining historical results with current actual results to calculate new development factors. This process continuously incorporates the historic and latest actual trends, and other underlying changes in the data elements used to calculate reserve estimates.
Reserves are reestimated quarterly and periodically throughout the year, by combining historical results with current actual results to calculate new development factors. This process incorporates the historic and latest actual trends, and other underlying changes in the data elements used to calculate reserve estimates.
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 Consolidated Statements of Financial Position.
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 the Consolidated Statements of Financial Position.
The payment of dividends by AIC to The Allstate Corporation is limited by Illinois insurance law to formula amounts based on statutory net income and statutory surplus, as well as the timing and amount of dividends paid in the preceding twelve months.
The payment of dividends by AIC to the Corporation is limited by Illinois insurance law to formula amounts based on statutory net income and statutory surplus, as well as the timing and amount of dividends paid in the preceding twelve months.
Allstate’s approach to culture risk and return management is grounded in risk and return principles and organized by Our Shared Purpose, targeting continual alignment of culture with the company’s mission, values, operating standards and behaviors.
Allstate’s approach to culture risk and return management is grounded in its risk and return principles and organized by Our Shared Purpose, targeting continual alignment of culture with the company’s mission, values, operating standards and behaviors.
It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein. A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business. This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.
It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein. A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business. This section of this Form 10-K generally discusses 2025 and 2024 results and year-to-year comparisons between 2025 and 2024.
See Note 12 of the consolidated financial statements for additional details on these programs. Intercompany reinsurance We enter into certain intercompany insurance and reinsurance transactions in order to maintain underwriting control and manage insurance risk among various legal entities. These reinsurance agreements have been approved by the appropriate regulatory authorities. All significant intercompany transactions have been eliminated in consolidation.
See Note 11 of the consolidated financial statements for additional details on these programs. Intercompany reinsurance We enter into certain intercompany insurance and reinsurance transactions in order to maintain underwriting control and manage insurance risk among various legal entities. These reinsurance agreements have been approved by the appropriate regulatory authorities. All significant intercompany transactions have been eliminated in consolidation.
However, average premiums are often not considered commensurate with the inherent risk of loss. In addition, as explained in Note 16 of the consolidated financial statements, in various states Allstate is subject to assessments from assigned risk plans, reinsurance facilities and joint underwriting associations providing insurance for wind related property losses.
However, average premiums are often not considered commensurate with the inherent risk of loss. In addition, as explained in Note 14 of the consolidated financial statements, in various states Allstate is subject to assessments from assigned risk plans, reinsurance facilities and joint underwriting associations providing insurance for wind related property losses.
Allstate homeowner policyholders in California are offered coverage for damage caused by an earthquake through the California Earthquake Authority (“CEA”), a privately financed, publicly managed state agency created to provide insurance coverage for earthquake damage. Allstate is subject to assessments from the CEA under certain circumstances as explained in Note 16 of the consolidated financial statements.
Allstate homeowner policyholders in California are offered coverage for damage caused by an earthquake through the California Earthquake Authority (“CEA”), a privately financed, publicly managed state agency created to provide insurance coverage for earthquake damage. Allstate is subject to assessments from the CEA under certain circumstances as explained in Note 14 of the consolidated financial statements.
In 2024, 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.
In 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 OPEB plans’ obligations are estimated based on the expected benefits to be paid. See Note 19 of the consolidated financial statements for further information. Reserves for property and casualty insurance claims and claims expense represent estimated amounts necessary to settle all outstanding claims, including claims that have been IBNR as of the balance sheet date.
The OPEB plans’ obligations are estimated based on the expected benefits to be paid. See Note 17 of the consolidated financial statements for further information. Reserves for property and casualty insurance claims and claims expense represent estimated amounts necessary to settle all outstanding claims, including claims that have been IBNR as of the balance sheet date.
For each business, we identify a strategic asset allocation which considers both the nature of the liabilities and the risk and return characteristics of the various asset classes in which we invest. This allocation is informed by our long-term business and market expectations, as well as other considerations such as risk appetite, portfolio diversification, duration, desired liquidity and capital.
We identify a strategic asset allocation which considers both the nature of the liabilities and the risk and return characteristics of the various asset classes in which we invest. This allocation is informed by our long-term business and market expectations, as well as other considerations such as risk appetite, portfolio diversification, duration, desired liquidity and capital.
Of the majority of our assumed reinsurance exposure, approximately 85% is for excess of loss coverage, while the remaining 15% is for pro-rata coverage. Our direct primary commercial insurance business comprises a cross section of policyholders engaged in many diverse business sectors throughout the country and did not include coverage to large asbestos manufacturers.
Of the majority of our assumed reinsurance exposure, approximately 85% is for excess of loss coverage, while the remaining 15% is for pro-rata coverage. Our direct primary commercial insurance business comprises a cross section of policyholders engaged in many diverse business sectors throughout the country and did not include coverage to large asbestos companies.
We calculate and record a single best reserve estimate, in conformance with generally accepted actuarial standards and practices, for each line of insurance, its components (coverages and perils) and state, for reported losses and for IBNR losses, and as a result we believe that no other estimate is better than our recorded amount.
We derive and record a single best reserve estimate, in conformance with generally accepted actuarial standards and practices, for each line of insurance, its components (coverages and perils) and state, for reported losses and for IBNR losses, and as a result we believe that no other estimate is better than our recorded amount.
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 our participation in various state facilities. For further discussion of these facilities, see Note 16 of the consolidated financial statements.
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 our participation in various state facilities. For further discussion of these facilities, see Note 14 of the consolidated financial statements.
ANJ writes auto and homeowners insurance in New Jersey, which has a financial strength rating of A’ from Demotech, that was affirmed in December 2024. In August 2024, A.M. Best affirmed the insurance financial strength rating of A+ for North Light, our excess and surplus lines carrier. The outlook for the rating is stable. In August 2024, A.M.
ANJ writes auto and homeowners insurance in New Jersey, which has a financial strength rating of A’ from Demotech, that was affirmed in December 2025. In August 2025, A.M. Best affirmed the insurance financial strength rating of A+ for North Light, our excess and surplus lines carrier. The outlook for the rating is stable. In August 2025, A.M.
We retain approximately 23,000 PIF with earthquake coverage, with the largest number of policies located in Kentucky, due to regulatory and other reasons. We purchase reinsurance in Kentucky and enter into arrangements in many states to make earthquake coverage available through our brokerage platform.
We retain approximately 19,000 PIF with earthquake coverage, with the largest number of policies located in Kentucky, due to regulatory and other reasons. We purchase reinsurance in Kentucky and enter into arrangements in many states to make earthquake coverage available through our brokerage platform.
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 in 2025, based on the greater of 2024 statutory net income or 10% of actual 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 in 2026, based on the greater of 2025 statutory net income or 10% of actual 2025 statutory surplus.
For a detailed discussion of the legal and regulatory actions in which we are involved, see Note 16 of the consolidated financial statements. Pending Accounting Standards There are pending accounting standards that we have not implemented because the implementation dates have not yet occurred. For a discussion of these pending standards, see Note 2 of the consolidated financial statements.
For a detailed discussion of the legal and regulatory actions in which we are involved, see Note 14 of the consolidated financial statements. Pending Accounting Standards There are pending accounting standards that we have not implemented because the implementation dates have not yet occurred. For a discussion of these pending standards, see Note 2 of the consolidated financial statements.
The most important factors we monitor to evaluate the financial condition and performance for the Company include: • Allstate Protection : premium, policies in force (“PIF”), new business sales, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio • Protection Services : revenues, premium written, PIF and adjusted net income • Allstate Health and Benefits : premiums, other revenue, new business sales, PIF, benefit ratio, expenses and adjusted net income • Investments : exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and fixed income portfolio duration • Financial condition : liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equity 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.
The most important factors we monitor to evaluate the financial condition and performance for the Company include: • Allstate Protection : premium, policies in force (“PIF”), new business sales, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio • Protection Services : revenues, premium written, PIF and adjusted net income • Investments : exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and fixed income portfolio duration • Financial condition : liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equity Measuring segment profit or loss The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services and Corporate segments.
Actions taken related to our risk of loss from fires following earthquakes include restrictive underwriting guidelines in California for new business writings, purchasing reinsurance for Kentucky personal lines property risks, and purchasing nationwide occurrence reinsurance, excluding Florida.
Actions taken related to our risk of loss from fires following earthquakes include restrictive underwriting guidelines in California for new business writings, purchasing reinsurance for Kentucky personal lines property risks, and purchasing nationwide reinsurance coverage, excluding Florida.
Within appropriate ranges relative to strategic allocations, tactical allocations are made in consideration of prevailing and potential future market conditions. We manage risks that involve uncertainty related to interest rates, inflation, credit spreads, equity returns and currency exchange rates. The Property-Liability portfolio emphasizes protection of principal and consistent income generation within a total return framework.
Within appropriate ranges relative to strategic allocations, tactical allocations are made in consideration of prevailing and potential future market conditions. We manage risks that involve uncertainty related to interest rates, inflation, credit spreads, equity returns and currency exchange rates. The Allstate Protection and Run-off Property-Liability portfolio emphasizes protection of principal and consistent income generation within a total return framework.
Causes of reserve estimate uncertainty At each reporting date, the highest degree of uncertainty in estimates for most of our losses from ongoing businesses arise from claims remaining to be settled for the current accident year and the most recent preceding accident year.
Causes of reserve estimate uncertainty At each reporting date, the highest degree of uncertainty in estimates for most of our losses from ongoing businesses arises from claims remaining to be settled for the current accident year and the most recent preceding accident year.
There were no borrowings under the credit facility during 2024. • 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.
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.
Framework We apply risk and return principles using an integrated ERRM framework that focuses on assessment, transparency and dialogue, which provides a comprehensive view of risks and is used by senior management and business managers to drive risk-return based decisions. We continually validate and improve our ERRM practices by benchmarking and obtaining external perspectives.
Framework We apply risk and return principles using an integrated ERRM framework that focuses on assessment, transparency and dialogue, which provides a comprehensive view of risks and is used by senior management and business managers to drive risk-informed decisions. We continually validate and improve ERRM practices by benchmarking and obtaining external perspectives.
For further discussion of these estimates and quantification of the impact of reserve estimates, reserve reestimates and assumptions, see Note 10 and Note 16 of the consolidated financial statements and the Reserve for Property and Casualty Insurance Claims and Claims Expense section of the MD&A.
For further discussion of these estimates and quantification of the impact of reserve estimates, reserve reestimates and assumptions, see Note 10 and Note 14 of the consolidated financial statements and the Reserve for Property and Casualty Insurance Claims and Claims Expense section of the MD&A.
Activities for potential uses of funds Property- Liability Protection Services Allstate Health and Benefits Corporate and Other Payment of claims and related expenses ü ü Payment of contract benefits, surrenders and withdrawals ü Reinsurance cessions and indemnification program payments ü ü ü Operating costs and expenses ü ü ü ü Purchase of investments ü ü ü ü Repayment of securities lending, commercial paper and line of credit agreements ü ü Payment or repayment of intercompany loans ü ü ü ü Capital contributions to subsidiaries ü ü ü ü Dividends or return of capital to shareholders/parent company ü ü ü ü Tax payments/settlements ü ü ü ü Common share repurchases ü Debt service expenses and repayment ü Payments related to employee benefit plans ü ü ü ü Payments for acquisitions ü ü ü ü Contractual obligations and commitments We have short-term and long-term contractual obligations and commitments.
Activities for potential uses of funds Property-Liability Protection Services Corporate and all other Payment of claims and related expenses ü ü Reinsurance cessions and indemnification program payments ü ü ü Operating costs and expenses ü ü ü Purchase of investments ü ü ü Repayment of securities lending, commercial paper and line of credit agreements ü ü Payment or repayment of intercompany loans ü ü ü Capital contributions to subsidiaries ü ü ü Dividends or return of capital to shareholders/parent company ü ü ü Tax payments/settlements ü ü ü Payments related to employee benefit plans ü ü Payments for acquisitions ü ü ü Payment of contract benefits ü Common share repurchases ü Debt service expenses and repayment ü Contractual obligations and commitments We have short-term and long-term contractual obligations and commitments.
We develop the assumed discount rate by utilizing the weighted average yield of a theoretical dedicated portfolio derived from non-callable bonds and callable bonds with a make-whole provision available in the Bloomberg corporate bond universe having ratings of “AA” by S&P or “Aa” by Moody’s on the measurement date with cash flows that match expected plan benefit requirements.
We develop the assumed discount rate by utilizing the weighted average yield of a theoretical dedicated portfolio derived from non-callable bonds and callable bonds with a make-whole provision available or callable within 12 months of maturity in the Bloomberg corporate bond universe having ratings of “AA” by S&P or “Aa” by Moody’s on the measurement date with cash flows that match expected plan benefit requirements.
Operational risk and return management encompasses risks and opportunities associated with Allstate’s interconnected systems of people, processes and technology. Representative areas of focus include talent, privacy, regulatory compliance, ethics, fraud, system availability, cybersecurity, data quality, disaster recovery and business continuity.
Operational risk and return management encompasses risks and opportunities associated with Allstate’s interconnected systems of people, processes and technology. Representative areas of focus include talent, privacy, regulatory compliance, ethics, fraud, system availability, cybersecurity and resilience, disaster recovery and business continuity.
Statutory surplus is a measure that is often used as a basis for determining dividend paying capacity, operating leverage and premium growth capacity, and it is also reviewed by rating agencies in determining their ratings. The property and casualty business is comprised of 59 insurance companies as of December 31, 2024, each of which has individual company dividend limitations.
Statutory surplus is a measure that is often used as a basis for determining dividend paying capacity, operating leverage and premium growth capacity, and it is also reviewed by rating agencies in determining their ratings. The property and casualty business is comprised of 57 insurance companies as of December 31, 2025, each of which has individual company dividend limitations.
Potential variability in reserve estimates Reserve estimates, by their nature, are very complex to determine, subject to significant judgment, and represent estimates rather than an exact determination for each outstanding claim, including claims incurred but not reported.
Potential variability in reserve estimates Reserve estimates, by their nature, are very complex to determine, subject to significant judgment, may be subject to litigation and represent estimates rather than an exact determination for each outstanding claim, including claims incurred but not reported.
We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 635 million shares of treasury stock as of December 31, 2024), 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.
We can use this shelf registration to issue an unspecified amount of debt securities, common stock (including 640 million shares of treasury stock as of December 31, 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.
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.
Lender-placed policies are excluded from policy counts. • New issued applications : item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. • Average premium-gross written (“average premium”) : gross premiums written divided by issued item count.
Activities for potential sources of funds Property- Liability Protection Services Allstate Health and Benefits Corporate and Other Receipt of insurance premiums ü ü ü Recurring service fees ü ü ü Contractholder fund deposits ü Reinsurance and indemnification program recoveries ü ü ü Receipts of principal, interest and dividends on investments ü ü ü ü Sales of investments ü ü ü ü Funds from securities lending, commercial paper and line of credit agreements ü ü Intercompany loans ü ü ü ü Capital contributions from parent (1) ü ü ü ü Dividends or return of capital from subsidiaries ü ü ü ü Tax refunds/settlements ü ü ü ü Funds from periodic issuance of additional securities ü Receipt of intercompany settlements related to employee benefit plans ü Funds from dispositions ü (1) Capital support is generally at management’s discretion unless contractual commitments are in place.
Activities for potential sources of funds Property-Liability Protection Services Corporate and all other Receipt of insurance premiums ü ü ü Recurring service fees ü ü ü Reinsurance and indemnification program recoveries ü ü ü Receipts of principal, interest and dividends on investments ü ü ü Sales of investments ü ü ü Funds from securities lending, commercial paper and line of credit agreements ü ü Intercompany loans ü ü ü Capital contributions from parent (1) ü ü ü Dividends or return of capital from subsidiaries ü ü ü Tax refunds/settlements ü ü ü Funds from periodic issuance of additional securities ü Receipt of intercompany settlements related to employee benefit plans ü ü Funds from dispositions ü (1) Capital support is generally at management’s discretion unless contractual commitments are in place.
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, labor shortages and potential trade policy actions, such as tariffs and quotas.
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, the Russia/Ukraine conflict, supply chain disruptions and labor shortages.
Discussions of 2022 results and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7 of our annual report on Form 10-K for 2023, filed February 21, 2024.
Discussions of 2023 results and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7. of our annual report on Form 10-K for 2024, filed February 24, 2025.
Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. $91 million of the portfolio is internally rated as of December 31, 2024. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets.
Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. $122 million of the portfolio is internally rated as of December 31, 2025. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets.
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. ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities.
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”).
Total gross payments were $118 million and $124 million for 2024 and 2023, 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.
Total gross payments were $168 million and $118 million for 2025 and 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.
Most of these losses relate to damaged property such as automobiles and homes, and medical care for injuries from accidents. During the first year after the end of an accident year, a large portion of the total losses for that accident year are settled.
Most of these losses relate to damaged property such as automobiles and homes, and payments related to injuries from accidents. During the first year after the end of an accident year, a large portion of the total losses for that accident year are settled.
Based on these evaluations, case reserves are established by claims adjusting staff and actuarial analysis is employed to develop an IBNR reserve, which includes estimated potential reserve development and claims that have occurred but have not been reported. As of December 31, 2024 and 2023, IBNR was 54.0% and 55.7%, respectively, of combined net asbestos and environmental reserves.
Based on these evaluations, case reserves are established by claims adjusting staff and actuarial analysis is employed to develop an IBNR reserve, which includes estimated potential reserve development and claims that have occurred but have not been reported. As of December 31, 2025 and 2024, IBNR was 58.2% and 54.0%, respectively, of combined net asbestos and environmental reserves.
Foreign currency exchange rate risk is the risk that we will incur economic losses due to adverse changes in foreign currency exchange rates. This risk primarily arises from our foreign equity investments, including common stocks, limited partnership interests, and our Canada, Northern Ireland, Europe and India operations. We use foreign currency derivative contracts to partially offset this risk.
Foreign currency exchange rate risk is the risk that we will incur economic losses due to adverse changes in foreign currency exchange rates. This risk primarily arises from our foreign equity investments, including common stocks, limited partnership interests, and our foreign operations. We use foreign currency derivative contracts to partially offset this risk.
Parent company capital capacity At the parent holding company level, we have deployable assets totaling $3.28 billion as of December 31, 2024, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter. The earnings capacity of the operating subsidiaries is the primary source of capital generation for the Corporation.
Parent company capital capacity At the parent holding company level, we have deployable assets totaling $7.52 billion as of December 31, 2025, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter. The earnings capacity of the operating subsidiaries is the primary source of capital generation for the Corporation.
(3) Other revenue is deducted from operating costs and expenses in the expense ratio calculation. 40 www.allstate.com 2024 Form 10-K Allstate Protection Allstate Protection Segment Private passenger auto, homeowners, and other personal lines insurance products are offered to consumers through exclusive agents, independent agents and directly to the consumer through contact centers and online.
(2) Other revenue is deducted from operating costs and expenses in the expense ratio calculation. 38 www.allstate.com 2025 Form 10-K Allstate Protection Allstate Protection Segment Private passenger auto, homeowners, and other personal lines insurance products are offered to consumers through exclusive agents, independent agents and directly to the consumer through contact centers and online.
As of December 31, 2024, 91.3% 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.
As of December 31, 2025, 92.1% 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.
Additionally, we: – Reduced our exposure to high-risk areas, including California and Florida. We have decreased our overall homeowner exposure in California by more than 50% since 2007. Additionally, from 2016 to 2022 we wrote a limited number of homeowners policies in select areas of California.
Additionally, we: – Reduced our exposure to high-risk areas, including California and Florida. We have decreased our overall homeowner exposure in California by more than 50% since 2007. Additionally, from 2016 to 2022 we wrote a limited number of homeowners policies in select areas of California. We stopped writing new homeowners and condominium business in California in 2022.
The total amount outstanding at any point in time under the combination of the credit facility and the commercial paper program cannot exceed the amount that can be borrowed under the credit facility. • As of December 31, 2024, there were no balances outstanding for the credit facility or the commercial paper facility and therefore the remaining borrowing capacity was $750 million under each facility. • 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.
The total amount outstanding at any point in time under the combination of the credit facility and the commercial paper program cannot exceed the The Allstate Corporation 71 2025 Form 10-K Capital Resources and Liquidity amount that can be borrowed under the credit facility. • As of December 31, 2025, there were no balances outstanding for the credit facility or the commercial paper facility and therefore the remaining borrowing capacity was $750 million under each facility. • 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.
Governance ERRM governance includes board oversight, an executive management committee, and enterprise and market-facing business chief risk officers. • The Allstate Corporation Board of Directors (“Allstate Board”) has overall responsibility for oversight of management’s design and implementation of Allstate’s ERRM framework, supported by the Audit Committee (“AC”) and the Risk and Return Committee (“RRC”). • The RRC of the Allstate Board oversees effectiveness of the ERRM program, governance structure and risk-related decision-making, while focusing on the Company’s aggregate risk profile. • The AC oversees the effectiveness of internal controls over financial reporting, disclosure controls and procedures, as well as management’s risk and control and cybersecurity program, and assists the Board in fulfilling certain oversight responsibilities as listed in the committee’s charter. 78 www.allstate.com 2024 Form 10-K Enterprise Risk and Return Management • The ERRC directs ERRM activities by establishing risk and return targets, determining economic capital levels and monitoring integrated strategies and actions from an enterprise risk and return perspective.
Governance ERRM governance includes board oversight, an executive management committee, and enterprise and market-facing business chief risk officers. • The Allstate Corporation Board of Directors (“Allstate Board”) has overall responsibility for oversight of management’s design and implementation of Allstate’s ERRM framework, supported by the Audit Committee (“AC”) and the Risk and Return Committee (“RRC”). • The RRC of the Allstate Board oversees the effectiveness of the ERRM program, governance structure and risk-related decision-making, while focusing on the Company’s aggregate risk profile. • The AC oversees the effectiveness of internal controls over financial reporting, disclosure controls and procedures, as well as management’s risk and control and cybersecurity program, and assists the Board in fulfilling certain oversight responsibilities as listed in the committee’s charter. • The Enterprise Risk and Return Council (“ERRC”) directs ERRM activities by establishing risk and return targets, monitoring and targeting capital levels and overseeing integrated strategies and The Allstate Corporation 73 2025 Form 10-K Enterprise Risk and Return Management actions from an enterprise risk and return perspective.
Limited partnership interests As of December 31, 2024, we held $8.95 billion in limited partnership interests, excluding those limited partnership interests where the underlying assets are predominately public equity securities, compared to $8.24 billion as of December 31, 2023.
Limited partnership interests As of December 31, 2025, we held $8.69 billion in limited partnership interests, excluding those limited partnership interests where the underlying assets are predominately public equity securities, compared to $8.95 billion as of December 31, 2024.
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 $39 million and $35 million for 2024 and 2023, respectively. The allowance for uncollectible reinsurance recoverables was $61 million and $59 million as of December 31, 2024 and 2023, respectively.
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 $38 million and $39 million for 2025 and 2024, respectively. The allowance for uncollectible reinsurance recoverables was $52 million and $61 million as of December 31, 2025 and 2024, respectively.
Mortgage loans of $784 million comprise loans secured by first mortgages on developed commercial real estate of $723 million and residential mortgage loans of $61 million. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 6 of the consolidated financial statements.
Mortgage loans of $879 million comprise loans secured by first mortgages on developed commercial real estate of $619 million and residential mortgage loans of $260 million. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 6 of the consolidated financial statements.
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 20.8% as of December 31, 2024.
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 15.1% as of December 31, 2025.
As of December 31, 2024, Ivantage had $2.57 billion non-proprietary premiums under management. • Ceded wind exposure related to insured property located in wind pool eligible areas in certain states. • Generally require higher deductibles for tropical cyclone than all peril deductibles which are in place for a large portion of coastal insured properties. • Include coverage for flood-related losses for auto comprehensive damage coverage since we have additional catastrophe exposure, beyond the property lines, for auto customers who have purchased comprehensive damage coverage. • Provide options of coverage for roof damage, including graduated coverage and pricing based on roof type and age.
As of December 31, 2025, Ivantage had $2.86 billion non-proprietary premiums under management. • Ceded wind exposure related to insured property located in wind pool eligible areas in certain states. • Generally require higher deductibles for tropical cyclone than all peril deductibles which are in place for a large portion of coastal insured properties. • Include coverage for flood-related auto comprehensive losses within our reinsurance program to reduce the additional catastrophe exposure, beyond the property lines, for auto customers who have purchased comprehensive damage coverage. • Provide options of coverage for roof damage, including graduated coverage and pricing based on roof type and age.
Reserves are recorded in the reporting period in which they are determined. Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on assessments of the characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by policyholders.
Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on assessments of the characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by policyholders.
Investments outlook Our focus is on the following priorities: • Enhance investment portfolio returns through use of a dynamic capital allocation framework and focus on tax efficiency. • Leverage our broad capabilities to manage the portfolio to earn higher risk-adjusted returns on capital. • Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile.
Our focus is on the following priorities: • Enhance investment portfolio after-tax returns through use of a dynamic capital allocation framework. • Leverage our broad capabilities to proactively manage the portfolio to earn attractive risk-adjusted returns on capital. • Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile.
The ERRC consists of Allstate’s chief executive officer, chief financial officer, chief risk officer, chief legal officer and other senior leaders. • Other key committees work with the ERRC to direct ERRM activities, including the Operational Risk and Return Council, the Information Security Council, the Internal Compliance and Control Committee, the Environmental, Social, and Governance (“ESG”) Steering Committee, liability governance committees, and investment committees.
The ERRC consists of Allstate’s chief executive officer, chief financial officer, chief risk officer, chief legal officer, chief resilience officer and other senior leaders. • Other committees work with the ERRC to direct ERRM activities, including the Operational Risk and Return Council, the Information Security Council, the Internal Compliance and Control Committee, liability governance committees and investment committees.
Change in fair value of spread-sensitive assets (1) As of December 31, ($ in millions) 2024 2023 +100 bps credit spread change $ (2,118) $ (1,898) (1) Includes the effects of credit derivatives.
Change in fair value of spread-sensitive assets (1) As of December 31, ($ in millions) 2025 2024 +100 bps credit spread change $ (2,125) $ (2,118) (1) Includes the effects of credit derivatives.
(2) Includes the effects of foreign currency derivative contracts and the offset from liabilities in foreign currencies. 72 www.allstate.com 2024 Form 10-K 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.
(2) Includes the effects of foreign currency derivative contracts and the offset from liabilities in foreign currencies. The Allstate Corporation 67 2025 Form 10-K 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.
Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable-rate mortgages), or both fixed and variable rate features.
Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable-rate mortgages), or both fixed and variable rate features. ABS includes collateralized debt obligations, consumer and other ABS.
Change in fair value of foreign currency denominated investments As of December 31, ($ in millions) 2024 2023 –10% change in foreign currency exchange rates (1) $ (374) $ (356) –10% change in net investments in foreign subsidiaries (2) (129) (125) (1) Includes the effects of foreign currency derivative contracts and excludes the offset from liabilities in foreign currencies.
Change in fair value of foreign currency denominated investments As of December 31, ($ in millions) 2025 2024 –10% change in foreign currency exchange rates (1) $ (420) $ (374) –10% change in net investments in foreign subsidiaries (2) (152) (129) (1) Includes the effects of foreign currency derivative contracts and excludes the offset from liabilities in foreign currencies.
Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credits are allocated to our reportable segments. The pension and other postretirement remeasurement gains and losses are reported in the Corporate and Other segment.
Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credits are allocated to the Allstate Protection and Protection Services segments. The pension and other postretirement remeasurement gains and losses are reported in the Corporate segment.
For example, to complete estimates for certain areas affected by catastrophes not yet inspected by our claims adjusting staff, or where we believed our historical loss development factors were not predictive, we rely on: • Analysis of actual claim notices received compared to total PIF. • Visual, governmental and third-party information, including aerial photos, using satellites, aircrafts and drones, area observations, and data on wind speed and flood depth to the extent available.
For example, to complete estimates for certain 80 www.allstate.com 2025 Form 10-K Application of Critical Accounting Estimates areas affected by catastrophes not yet inspected by our claims adjusting staff, or where we believed our historical loss development factors were not predictive, we rely on: • Analysis of actual claim notices received compared to total PIF. • Visual, governmental and third-party information, including aerial photos, using satellites, aircrafts and drones, area observations, and data on wind speed and flood depth to the extent available.
Best downgraded the insurance financial strength rating of A- for the members of Allstate New Jersey Group (Allstate New Jersey Insurance Company, Allstate New Jersey Property and Casualty Insurance Company, Encompass Insurance Company of New Jersey, Encompass Property and Casualty Insurance Company of New Jersey and Esurance Insurance Company of New Jersey). The outlook for the rating is negative.
Best affirmed the insurance financial strength ratings of A- for the members of Allstate New Jersey Group (Allstate New Jersey Insurance Company, Allstate New Jersey Property and Casualty Insurance Company, Encompass Insurance Company of New Jersey, Encompass Property and Casualty Insurance Company of New Jersey and Esurance Insurance Company of New Jersey). The outlook for the ratings is negative.
Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines asbestos reserves based on assessments of the characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, and determines environmental reserves based on assessments of the characteristics of exposure (e.g., environmental damages, respective shares of liability of potentially responsible parties, appropriateness and cost of remediation) to pollution and related clean-up costs.
Using established industry and actuarial best practices and assuming no change in the regulatory or economic The Allstate Corporation 81 2025 Form 10-K Application of Critical Accounting Estimates environment, this detailed and comprehensive methodology determines asbestos reserves based on assessments of the characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, and determines environmental reserves based on assessments of the characteristics of exposure (e.g., environmental damages, respective shares of liability of potentially responsible parties, appropriateness and cost of remediation) to pollution and related clean-up costs.
Catastrophe reinsurance The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during 2024 was $1.11 billion compared to $1.02 billion during 2023. Catastrophe placement premiums reduce net written and earned premium with approximately 80% of the reduction related to homeowners premium.
Catastrophe reinsurance The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during 2025 was $1.23 billion compared to $1.11 billion during 2024. Catastrophe placement premiums reduce net written and earned premium with approximately 83% of the reduction related to homeowners premium.
Loss experience and reserve variability are impacted by many factors, including but not limited to: • Supply chain disruptions and labor shortages, changes in used car prices, labor and part cost increases, unemployment levels, changes in commuting activity and driving behavior have and may continue to lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. • If a legal change is expected to have a significant impact on the development of claim severity for a coverage which is part of a particular line of insurance in a specific state, judgment is applied to determine appropriate development factors that will most accurately reflect the expected impact on that specific estimate. • If a change in economic conditions is expected to affect the cost of repairs to damaged autos or property for a particular line, coverage, or state, actuarial judgment is applied to determine appropriate development factors to use in the The Allstate Corporation 85 2024 Form 10-K Application of Critical Accounting Estimates reserve estimate that will most accurately reflect the expected impacts on severity development.
Loss experience and reserve variability are impacted by many factors, including but not limited to: • Supply chain disruptions and labor shortages, changes in used car prices, labor and part cost increases, unemployment levels, changes in commuting activity and driving behavior have and may continue to lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. • If a legal change is expected to have a significant impact on the development of claim severity for a coverage which is part of a particular line of insurance in a specific state, judgment is applied to determine appropriate development factors that will most accurately reflect the expected impact on that specific estimate. • If a change in economic conditions, including the impacts from existing or future U.S. tariffs, is expected to affect the cost of repairs or replacement of damaged autos or property for a particular line, coverage, or state, actuarial judgment is applied to determine appropriate development factors to use in the reserve estimate that will most accurately reflect the expected impacts on severity development.
(2) Ratios are calculated using property and casualty premiums earned. NM = not meaningful The Allstate Corporation 53 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense The following tables reflect the accident years to which the reestimates shown above are applicable. Favorable reserve reestimates are shown in parentheses.
(2) Ratios are calculated using property and casualty premiums earned. NM = not meaningful 50 www.allstate.com 2025 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense The following tables reflect the accident years to which the reestimates shown above are applicable. Favorable reserve reestimates are shown in parentheses.
For further detail on our fixed income portfolio monitoring process, see Note 6 of the consolidated financial statements. 64 www.allstate.com 2024 Form 10-K Investments The following table presents total fixed income securities by the applicable NAIC designation and comparable S&P rating.
For further detail on our fixed income portfolio monitoring process, see Note 6 of the consolidated financial statements. The Allstate Corporation 59 2025 Form 10-K Investments The following table presents total fixed income securities by the applicable NAIC designation and comparable S&P rating.
We have reissued 159 million common shares since 1995, primarily associated with our equity incentive plans, the 1999 acquisition of American Heritage Life Investment Corporation and the 2001 redemption of certain mandatorily redeemable preferred securities. Since 1995, total common shares outstanding has decreased by 634 million shares or 70.5%, primarily due to our repurchase programs.
We have reissued 160 million common shares since 1995, primarily associated with our equity incentive plans, the 1999 acquisition of American Heritage Life Investment Corporation and the 2001 redemption of certain mandatorily redeemable preferred securities. Since 1995, total common shares outstanding has decreased by 639 million shares or 71.1%, primarily due to our repurchase programs.
These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock. The Allstate Corporation (the “Corporation”) and Allstate Insurance Company (“AIC”) In May 2024, 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+.
These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock. The Allstate Corporation (the “Corporation”) and Allstate Insurance Company (“AIC”) In May 2025, Moody’s affirmed the Corporation’s senior debt and short-term issuer ratings of A3 and P-2, respectively, and AIC’s insurance financial strength rating of Aa3.
As of December 31, 2024, we had $3.74 billion in foreign currency denominated investments, including the effects of foreign currency derivative contracts, and $1.29 billion net investment in our foreign subsidiaries, primarily related to our Canada operations. These amounts were $3.56 billion and $1.25 billion, respectively, as of December 31, 2023.
As of December 31, 2025, we had $4.20 billion in foreign currency denominated investments, including the effects of foreign currency derivative contracts, and $1.53 billion net investment in our foreign subsidiaries, primarily related to our Canada operations. These amounts were $3.74 billion and $1.29 billion, respectively, as of December 31, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures About Market Risk Information required for Item 7A is incorporated by reference to the material under the caption “Market Risk” in Part II, Item 7 of this report. The Allstate Corporation 91 2024 Form 10-K
Biggest changeItem 7A. Quantitative and Qualitative Disclosures About Market Risk Information required for Item 7A is incorporated by reference to the material under the caption “Market Risk” in Part II, Item 7 of this report. The Allstate Corporation 85 2025 Form 10-K

Other ALL 10-K year-over-year comparisons