ALLSTATE CORP
For the period ended Dec 31, 2025. Filed Feb 20, 2026.
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FY2025 · Filed Feb 20, 2026
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Allstate Protection
Allstate Protection SegmentOur Allstate Protection segment accounted for 93.9% of Allstate’s 2025 consolidated insurance premiums and contract charges and 18.1% of Allstate’s December 31, 2025 PIF. This segment includes private passenger auto, homeowners and other personal lines products.We serve our customers through three distribution channels: exclusive agency, independent agency and direct channels primarily under the Allstate and National General (including Direct Auto) brands. Our products and services are tailored to meet different customer needs and distribution preferences.
| Transformative Growth | ||
|---|---|---|
| Improve Customer Value | Seeking to be a low cost provider through cost reductions and new products, identifying savings opportunities for customers through proactive protection reviews and increasing pricing sophistication | |
| Broadening the benefits of being connected with the Allstate Mobile app and expanded use of telematics pricing sophistication | ||
| Improving customer interactions and reducing customer effort | ||
| Increasing Allstate agent efficiency and productivity, positioning them to deliver greater value to customers at lower costs | ||
| Expand Customer Access | Growing National General by expanding product offerings and independent agency relationships and leveraging Allstate pricing and product capabilities | |
| Increasing direct channel distribution through improved customer experiences, marketing and expanding sales capacity | ||
| Increase Sophistication and Investment in Customer Acquisition | Improving the effectiveness of customer acquisition by centralizing lead management and using data and advanced computing capabilities | |
| Optimizing marketing spend in geographic areas based on opportunity and target margin | ||
| Deploy New Technology Ecosystem | Deploying an advanced technology ecosystem to deliver affordable, simple, and connected experiences and products at a lower cost | |
| Using generative and agentic artificial intelligence to improve customer value | ||
| Drive Organizational Transformation | Improve effectiveness and efficiency by empowering talent with decision clarity, agile business processes, measurement science and advanced technology | |
The Allstate Corporation 5
Products and distribution
Allstate Protection differentiates itself by offering a comprehensive range of affordable, simple and connected protection solutions across distribution channels for specific consumer segments.
| Protection Products | ||
| Insurance Products | Auto | |
| Homeowners | ||
| Specialty auto (motorcycle, trailer, motor home and off-road vehicle) | ||
| Other personal lines (renters, condominium, landlord, boat, umbrella, manufactured home, scheduled personal property and valuable item protection) | ||
| Commercial lines | ||
| Other business lines includes commissions earned from brokered property and casualty and life and annuity products, and lender-placed products | ||
| Answer Financial | Comparison quotes and sales of Allstate, National General and non-proprietary protection insurance products | |
| Distribution | |
| Exclusive agency channel | In the U.S., we offer products through over 27,400 Allstate exclusive agents and licensed sales professionals. We also have 600 exclusive financial specialists who offer non-proprietary life and annuity insurance and investment products. In Canada, and on a limited basis in the U.S., we offer Allstate brand products through approximately 700 employee sales agents |
| Independent agency channel | In the U.S., we distribute our products through approximately 58,700 independent agent locations |
| Direct channel | We offer products through approximately 2,200 sales representatives in contact centers and online. Direct Auto products are also available through employees in approximately 500 retail stores |
Strategy updates and additional information
Allstate exclusive agents and direct channel
Our Affordable, Simple and Connected auto and homeowners insurance products are available in 43 and 31 states, respectively, with rollout completion targeted for 2026. This includes a simplified shopping and customer experience and enhanced pricing sophistication that provides a seamless experience for customers.
Independent Agents
Our Custom360® middle market standard and preferred auto and homeowners insurance products were rolled out
to 36 states at the end of 2025.
6 www.allstate.com
Allstate Protection pricing
and risk management strategies
Our pricing and underwriting strategies and
decisions are designed to generate sustainable
profitable growth while providing affordable solutions to customers.
A proprietary database of underwriting and loss experience enables sophisticated pricing algorithms and methodologies to accurately price risks while seeking to attract and retain customers in multiple risk segments.
For auto insurance, risk evaluation factors can include, but are not limited to: vehicle make,
model and year; driver age and marital status; territory; years licensed; loss history; years
insured with prior carrier; prior liability limits; prior lapse in coverage; and insurance scoring utilizing telematics data and other consumer information.
For property insurance, risk evaluation factors
can include, but are not limited to: geographic location of the property; loss history; age,
condition and construction characteristics of
the property; insurance scoring utilizing other consumer information; and the amount of
insurance purchased.
The pricing strategy involves local marketplace pricing and underwriting decisions based on risk evaluation factors to the extent permissible by applicable law and an evaluation of competitors.
Pricing of property products is intended to
generate risk-adjusted returns that are acceptable over a long-term period. Rate increases and decreases are pursued to keep pace with loss cost trends
including the impacts of inflation and losses from catastrophic events and those that are weather related (such as wind, hail, lightning and freeze not meeting our criteria to be declared a catastrophe). We also take into consideration potential customer disruption, the impact on our ability to market our products, regulatory limitations, our competitive position
and profitability.
In any reporting period, loss experience from catastrophic events and weather-related losses
may contribute to negative or positive underwriting performance relative to the expectations incorporated into product pricing.
Property catastrophe exposure is managed with
the goal of providing shareholders an acceptable return on the risks assumed, managing variability of earnings, while providing protection to our customers.
Catastrophe exposure management includes purchasing reinsurance to provide coverage for known exposure to hurricanes, earthquakes and fires following earthquakes, wildfires and other catastrophes.
Our current catastrophe reinsurance program
utilizes the Company’s risk and return framework which incorporates a robust economic capital model and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires. We monitor risk both in aggregate and by peril, while also evaluating model performance relative to experience and expectations of catastrophe risk trends. As of December 31, 2025, the modeled 1-in-100 probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.1 billion, net of reinsurance. We continually review aggregate risk appetite and the cost and availability of reinsurance to optimize
the risk and return profile of this exposure.
The use of different assumptions and updates to industry models and to our risk transfer program could materially change the projected loss. Growth strategies include areas where we believe diversification can be enhanced and an appropriate return can be earned for the risk. As a result, our modeled exposure may increase. In addition, we have exposure to other severe weather events, which impact catastrophe losses. We are promoting measures to prevent and mitigate losses that are increasing due to climate change and increased severe weather including making homes and communities more resilient, enforcement of stronger building codes, adoption of sensible land use policies, expanded disaster response capabilities and creation of public risk sharing mechanisms.
Commercial lines strategy
The commercial lines strategy is focused on growing National General commercial auto product lines sold through exclusive and independent agents. We are expanding offerings geographically and increasing product lines, including brokered solutions to meet diverse customer needs. We no longer offer Allstate brand commercial policies.
The Allstate Corporation 7
Other business lines
Allstate, through Ivantage Insurance Agency, collaborates with select carriers to provide complementary products in areas where Allstate has limited risk appetite, enabling us to meet a broader range of customer needs. We also offer non-proprietary life and annuity products offered by third-party providers. In addition, we provide lender-placed insurance products to customers through agreements with lenders and general agents.
Answer Financial strategy
Answer Financial is an insurance agency that sells Allstate and other insurance companies’ products directly to customers. Our strategy as a technology-enabled insurance agency is to provide comparison shopping and related services for consumers, offering choice, convenience and ease of use.
Compensation structure
Exclusive agent
Allstate exclusive agents are rewarded for customer value, profitable growth and household penetration. Compensation includes a monthly base commission as a percentage of eligible written premium, variable pay for new customer acquisition and product bundling and monthly and annual bonuses based on profitable customer growth.
Independent agent
Independent agents are rewarded for profitable growth and profit targets. Agents receive a monthly base commission as a percentage of their total eligible written premium. Annual profit share opportunity is based upon achieving premium growth and profit targets. Additional annual incentives are offered to key agency partners to reach specific growth targets.
Direct channel employee agents
Direct channel employee agents receive a base salary as well as variable compensation for selling a variety of products. Employee agents sell products through contact centers and offer Direct Auto products through retail stores.
8 www.allstate.com
| Product offerings and features | |
| Affordable, Simple, Connected | Enhanced insurance experience and products, making them affordable, simple and connected. Examples include fewer questions for customers to answer before getting a quote, easy-to-understand coverage descriptions and customized coverage offers and an industry-leading rating plan. Offered through the exclusive agency and direct channels in 43 states for auto, 30 states for renters and 31 states for both homeowners and valuable item protection as of December 31, 2025.Product suite includes feature options for qualified customers similar to Your Choice Auto®, such as Accident Forgiveness and Auto Replacement Protection and features such as more flexible transportation expense and expanded household composition options. |
| Allstate Houseand Home® | Featured options include Claim RateGuard®, Claim-Free Bonus, Deductible Rewards® and flexibility in options and coverages, including graduated roof coverage and pricing based on roof type and age for damage related to wind and hail events. Offered through the exclusive agency and direct channels. |
| Bundling Benefits | Auto customers with a qualifying property policy are provided an auto renewal guarantee and a deductible waiver (when the same event, with the same covered cause of loss, damages both auto and property). Offered in 47 states and District of Columbia (“D.C.”) as of December 31, 2025, through the exclusive agency and direct channels. |
| Auto Replacement Protection | Replaces a qualifying customer’s vehicle involved in a total loss accident with a newer vehicle or higher-valued vehicle. Offered in 48 states and D.C. as of December 31, 2025, through the exclusive agency and direct channels. |
| Custom360® | Endorsements and coverage amounts can be scaled up or down to create a custom, needs-based insurance solution for customers at all stages in life. Leverages Allstate analytics and rating plans adapted to the independent agency channel. Offered in 36 states as of December 31, 2025. |
| Telematics-based solutions | |
| Drivewise® | Telematics-based program, available in 48 states and D.C. as of December 31, 2025, offered through the exclusive agency and direct channels, that uses a mobile application or an in-vehicle device to capture driving behaviors and encourage safe driving. It provides customers with information, tools and more accurate individual pricing. |
| Milewise® | Usage-based insurance product, available in 21 states and D.C. as of December 31, 2025, through the exclusive agency and direct channels, that gives customers flexibility to customize their insurance and pay based on the number of miles they drive. |
| DynamicDrive® | Mobile-based telematics application, available in 44 states as of December 31, 2025, offered through the independent agency and direct channels, used to capture driving behaviors and to more accurately rate customers. |
The Allstate Corporation 9
Competition
The personal lines insurance markets, including private passenger auto and homeowners insurance, are highly competitive. The following charts provide Allstate Protection’s combined market share compared to our principal U.S. competitors using statutory direct written premium for the year ended December 31, 2024, according to A.M. Best.
| Personal lines insurance | Private passenger auto insurance | Homeowners insurance |
|---|
Geographic markets
We primarily operate in the U.S. (all 50 states and D.C.) and Canada. Our top geographic markets based on 2025 statutory direct premiums are reflected below.
| Personal lines insurance | Private passenger auto insurance | Homeowners insurance |
|---|
10 www.allstate.com
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.