ALLSTATE CORP
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Run-off Property-Liability
Segment Results Run-off Property-Liability
Run-off Property-Liability Segment
| Underwriting results | ||||
|---|---|---|---|---|
| ($ in millions) | Three months ended September 30, | Nine months ended September 30, | ||
| 2025 | 2024 | 2025 | 2024 | |
| Claims and claims expense | ||||
| Asbestos claims | $(62) | $(19) | $(62) | $(19) |
| Environmental claims | (27) | (10) | (27) | (10) |
| Other run-off lines | (57) | (30) | (62) | (36) |
| Total claims and claims expense | $(146) | $(59) | $(151) | $(65) |
| Operating costs and expenses | — | (1) | (2) | (3) |
| Underwriting loss | $(146) | $(60) | $(153) | $(68) |
Annual reserve review In the third quarter of 2025 and 2024, we performed our annual reserve review using established industry and actuarial best practices. The annual review resulted in reserve reestimates that increased reserves by $146 million and $58 million in 2025 and 2024, respectively. The reserve reestimates are included as part of claims and claims expense.
The reserve reestimates in 2025 primarily related to new reported information for asbestos claims, new reported claims for environmental and other mass tort claims and increased projections for claims expenses.
The reserve reestimates in 2024 primarily related to new reported information for asbestos related
claims and adverse developments within the other run-off lines.
We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment. However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable.
| Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | September 30, 2025 | December 31, 2024 |
| Asbestos claims | ||
| Gross reserves | $1,125 | $1,124 |
| Reinsurance | (335) | (350) |
| Net reserves | 790 | 774 |
| Environmental claims | ||
| Gross reserves | 322 | 320 |
| Reinsurance | (59) | (61) |
| Net reserves | 263 | 259 |
| Other run-off claims | ||
| Gross reserves | 461 | 439 |
| Reinsurance | (38) | (58) |
| Net reserves | 423 | 381 |
| Total | ||
| Gross reserves | 1,908 | 1,883 |
| Reinsurance | (432) | (469) |
| Net reserves | $1,476 | $1,414 |
58 www.allstate.com
Run-off Property-Liability Segment Results
| Reserves by type of exposure before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | September 30, 2025 | December 31, 2024 |
| Direct excess commercial insurance | ||
| Gross reserves | $1,095 | $1,082 |
| Reinsurance | (351) | (363) |
| Net reserves | 744 | 719 |
| Assumed reinsurance coverage | ||
| Gross reserves | 604 | 581 |
| Reinsurance | (55) | (54) |
| Net reserves | 549 | 527 |
| Direct primary commercial insurance | ||
| Gross reserves | 100 | 133 |
| Reinsurance | (25) | (51) |
| Net reserves | 75 | 82 |
| Unallocated loss adjustment expenses | ||
| Gross reserves | 109 | 87 |
| Reinsurance | (1) | (1) |
| Net reserves | 108 | 86 |
| Total | ||
| Gross reserves | 1,908 | 1,883 |
| Reinsurance | (432) | (469) |
| Net reserves | $1,476 | $1,414 |
| Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”) | ||||
|---|---|---|---|---|
| September 30, 2025 | December 31, 2024 | |||
| Case | IBNR | Case | IBNR | |
| Direct excess commercial insurance | ||||
| Gross reserves (1) | 58% | 42% | 58% | 42% |
| Ceded (2) | 66 | 34 | 62 | 38 |
| Assumed reinsurance coverage | ||||
| Gross reserves | 33 | 67 | 34 | 66 |
| Ceded | 44 | 56 | 51 | 49 |
| Direct primary commercial insurance | ||||
| Gross reserves | 39 | 61 | 54 | 46 |
| Ceded | 73 | 27 | 87 | 13 |
(1)Approximately 65% of gross case reserves as of September 30, 2025 and December 31, 2024 are subject to settlement agreements that define and limit our obligations.
(2)Approximately 72% of ceded case reserves as of September 30, 2025 and December 31, 2024 are subject to settlement agreements that define and limit our obligations.
| Gross payments from case reserves by type of exposure | ||||
|---|---|---|---|---|
| ($ in millions) | Three months ended September 30, | Nine months ended September 30, | ||
| 2025 | 2024 | 2025 | 2024 | |
| Direct excess commercial insurance | ||||
| Gross (1) | $14 | $19 | $74 | $51 |
| Ceded (2) | (6) | (7) | (27) | (20) |
| Assumed reinsurance coverage | ||||
| Gross | 21 | 6 | 37 | 33 |
| Ceded | (5) | 1 | (6) | (1) |
| Direct primary commercial insurance | ||||
| Gross | 2 | 1 | 4 | 4 |
| Ceded | (1) | (1) | (2) | (2) |
(1)In the third quarter and first nine months of 2025, 81% and 90% of payments related to settlement agreements, respectively, compared to 94% and 89% in the third quarter and first nine months of 2024, respectively.
(2)In the third quarter and first nine months of 2025, 84% and 91% of payments related to settlement agreements, respectively, compared to 98% and 95% in the third quarter and first nine months of 2024, respectively.
Third Quarter 2025 Form 10-Q 59
Segment Results Run-off Property-Liability
Total net reserves as of September 30, 2025, included $773 million or 52% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.
Total gross payments were $37 million and $115 million for the third quarter and first nine months of 2025, respectively, compared to $26 million and $88 million for the third quarter and first nine months of 2024, respectively. Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon. The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds. Reinsurance collections were $9 million and $25 million for the third quarter and first nine months of 2025, respectively, compared to $5 million and $31 million for the third quarter and first nine months of 2024, respectively.
60 www.allstate.com
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