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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Run-off Property-Liability
2025 Form 10-K Run-off Property-Liability
Run-off Property-Liability Segment
The Run-off Property-Liability segment includes results from property and casualty insurance coverage that primarily relates to policies written from the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other run-off lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off. We may pursue settlement agreements including policy buybacks on direct excess commercial business when appropriate to improve the certainty of the liabilities. Settlement agreements are negotiated contracts between Allstate and third parties that generally set forth the rights and obligations of the parties, including terms of payment for claims. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information.
| Underwriting results | |||
|---|---|---|---|
| For the years ended December 31, | |||
| ($ in millions) | 2025 | 2024 | 2023 |
| Claims and claims expense | |||
| Asbestos claims | $(63) | $(19) | $(44) |
| Environmental claims | (27) | (10) | (18) |
| Other run-off lines | (61) | (39) | (27) |
| Total claims and claims expense | (151) | (68) | (89) |
| Operating costs and expenses | (3) | (5) | (5) |
| Underwriting loss | $(154) | $(73) | $(94) |
Underwriting losses in 2025 of $154 million and $73 million in 2024 primarily related to our annual reserve review using established industry and actuarial best practices and loss adjustment expenses. The reserve reestimates are included as part of claims and claims expense.
The reserve reestimates in 2025 primarily related to new reported information for asbestos claims, new reported claims for environmental and other mass tort claims and increased projections for claim expenses. The reserve reestimates in 2024 primarily related to new reported information for asbestos-related claims and adverse developments within the other run-off lines.
We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment. However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable.
| Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | December 31, 2025 | December 31, 2024 |
| Asbestos claims | ||
| Gross reserves | $1,098 | $1,124 |
| Reinsurance | (329) | (350) |
| Net reserves | 769 | 774 |
| Environmental claims | ||
| Gross reserves | 302 | 320 |
| Reinsurance | (55) | (61) |
| Net reserves | 247 | 259 |
| Other run-off claims | ||
| Gross reserves | 452 | 439 |
| Reinsurance | (36) | (58) |
| Net reserves | 416 | 381 |
| Total | ||
| Gross reserves | 1,852 | 1,883 |
| Reinsurance | (420) | (469) |
| Net reserves | $1,432 | $1,414 |
46 www.allstate.com
2025 Form 10-KRun-off Property-Liability
| Reserves by type of exposure before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | December 31, 2025 | December 31, 2024 |
| Direct excess commercial insurance | ||
| Gross reserves | $1,063 | $1,082 |
| Reinsurance | (341) | (363) |
| Net reserves | 722 | 719 |
| Assumed reinsurance coverage | ||
| Gross reserves | 584 | 581 |
| Reinsurance | (54) | (54) |
| Net reserves | 530 | 527 |
| Direct primary commercial insurance | ||
| Gross reserves | 98 | 133 |
| Reinsurance | (24) | (51) |
| Net reserves | 74 | 82 |
| Unallocated loss adjustment expenses | ||
| Gross reserves | 107 | 87 |
| Reinsurance | (1) | (1) |
| Net reserves | 106 | 86 |
| Total | ||
| Gross reserves | 1,852 | 1,883 |
| Reinsurance | (420) | (469) |
| Net reserves | $1,432 | $1,414 |
| Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”) | ||||
|---|---|---|---|---|
| December 31, 2025 | December 31, 2024 | |||
| Case | IBNR | Case | IBNR | |
| Direct excess commercial insurance | ||||
| Gross reserves (1) | 57% | 43% | 58% | 42% |
| Ceded (2) | 66 | 34 | 62 | 38 |
| Assumed reinsurance coverage | ||||
| Gross reserves | 32 | 68 | 34 | 66 |
| Ceded | 44 | 56 | 51 | 49 |
| Direct primary commercial insurance | ||||
| Gross reserves | 38 | 62 | 54 | 46 |
| Ceded | 72 | 28 | 87 | 13 |
(1)Approximately 66% and 65% of gross case reserves as of December 31, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.
(2)Approximately 73% and 72% of ceded case reserves as of December 31, 2025 and December 31, 2024, respectively, are subject to settlement agreements that define and limit our obligations.
The Allstate Corporation 47
2025 Form 10-K Run-off Property-Liability
| Gross payments from case reserves by type of exposure | ||
|---|---|---|
| ($ in millions) | For the years ended December 31, | |
| 2025 | 2024 | |
| Direct excess commercial insurance | ||
| Gross (1) | $105 | $67 |
| Ceded (2) | (36) | (25) |
| Assumed reinsurance coverage | ||
| Gross | 57 | 45 |
| Ceded | (7) | (2) |
| Direct primary commercial insurance | ||
| Gross | 6 | 6 |
| Ceded | (3) | (2) |
(1)In 2025 and 2024, 91% and 87% of payments related to settlement agreements, respectively.
(2)In 2025 and 2024, 92% and 93% of payments related to settlement agreements, respectively.
Total net reserves as of December 31, 2025, included $761 million or 53% of estimated IBNR reserves compared to $723 million or 51% of estimated IBNR reserves as of December 31, 2024.
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. 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. The allowance represents 10.7% and 11.3% of the related reinsurance recoverable balances as of December 31, 2025 and 2024, respectively.
48 www.allstate.com
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