ALLSTATE CORP

Allstate Protection Segment

Underwriting income increased $2.30 billion in the first quarter of 2026 compared to the first quarter of 2025, due to lower catastrophe losses, the benefit of prior year reserve releases and increased premiums earned, partially offset by higher expenses.

(1)Includes renters, condominium, landlord, boat, umbrella, manufactured home, scheduled personal property, auto assigned risk and valuable item protection products.

(2)Other business lines represents commissions earned from brokered property and casualty and life and annuity products, and lender-placed products.

Change in underwriting results from prior year period - three months ended

($ in millions)

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

Auto insurance premiums written increased $2 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to the following factors:

•Increased new issued applications in all channels

•PIF increased 2.6% or 658 thousand to 25,758 thousand as of March 31, 2026 compared to March 31, 2025

•Lower Allstate brand average premiums resulting from a shift in product mix towards affordable, simple and connected protection

•We will pursue rate adjustments in states where we are achieving acceptable returns, while implementing rates where needed to keep pace with increasing costs

Homeowners insurance premiums written increased 8.3% or $288 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to the following factors:

•Higher Allstate brand average premiums resulting from rate increases and inflation in insured home replacement costs, combined with growth in policies in force

First Quarter 2026 Form 10-Q 45

•In the three months ended March 31, 2026, rate increases of 7.2% were implemented resulting in a total estimated insurance premium impact of 1.4%, excluding the impact of changes in insured home replacement costs

•PIF increased 2.5% or 190 thousand to 7,739 thousand as of March 31, 2026 compared to March 31, 2025, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel

•Increased new issued applications in direct and exclusive agency channels

In Florida, we are not writing new homeowners business and are substantially complete with the non-renewal of certain policies.

We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.

Other personal lines premiums written increased 5.3% or $39 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers. We are not writing new condominium business in Florida, and we are non-renewing certain policies in Florida.

Commercial lines premiums written increased 19.1% or $18 million in the first quarter of 2026 compared to the first quarter of 2025, primarily due to an increase in new issued applications and higher average premiums from current offerings. We offer comprehensive

commercial products, including brokered solutions, to customers through our exclusive agency, independent agency and direct channels.

Other business lines premiums written decreased 11.0% or $19 million in the first quarter of 2026 compared to the first quarter of 2025, due to lower lender-placed auto premiums.

GAAP operating ratios include loss ratio, expense ratio and combined ratio to analyze our profitability trends. Frequency and severity changes are used to describe the trends in loss costs.

(1)Expense ratio includes other revenue of $44 million for the three months ended March 31, 2026 and March 31, 2025, for fees on auto assigned risk policies.

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

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(1)The ten-year average effect of first quarter catastrophe losses on the total combined ratio was 8.4 points.

(2)The ten-year average effect of first quarter homeowners catastrophe losses on the total homeowners combined ratio was 28.3 points.

Auto loss ratio decreased 8.7 points in the first quarter of 2026, compared to the same period of 2025, driven by the benefit of prior year reserve releases, excluding catastrophes, and increased earned premiums. Estimated report year 2026 incurred claim severity for Allstate brand increased compared to report year 2025 for major coverages due to higher repair costs, mix of total loss frequency, medical inflation and attorney representation.

Homeowners loss ratio decreased 30.3 points in the first quarter of 2026 compared to the first quarter of 2025, primarily due to lower catastrophe losses and increased premiums earned. Gross claim frequency, excluding catastrophes, decreased in the first quarter of 2026 compared to the same period of 2025 while paid claim severity, excluding catastrophes, increased primarily due to fire perils. Homeowners paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the quarter.

Other personal lines loss ratio decreased 27.3 points in the first quarter of 2026 compared to the same period of 2025, primarily due to the benefit of prior year reserve releases, excluding catastrophes, lower catastrophe losses and increased premiums earned.

Commercial lines loss ratio decreased 2.0 points in the first quarter of 2026, compared to the same period of 2025, primarily due to lower losses, partially offset by a decrease in premiums earned.

Other business lines loss ratio decreased 13.8 points in the first quarter of 2026, compared to the same period of 2025, primarily due to lower catastrophe losses.

Catastrophe losses decreased $962 million to $1.24 billion in the first quarter of 2026 compared to the first quarter of 2025. Results in the first quarter of 2025 included $1.07 billion of losses related to the California wildfire events.

We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party

policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes.

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

Loss estimates are generally based on claim adjuster inspections and the application of historical loss development factors. Our loss estimates are calculated in accordance with the coverage provided by our policies. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserving for hurricane losses is complicated by the inability of insureds to promptly report losses, limitations placed on claims adjusting staff affecting their ability to inspect losses, determining whether losses are covered by our homeowners policy (generally for damage caused by wind or wind driven rain) or specifically excluded coverage caused by flood, exposure to mold damage, and the effects of numerous other considerations, including the timing of a catastrophe in relation to other events, such as at or near the end of a financial reporting period, which can affect the availability of information needed to estimate reserves for that reporting period. In these situations, we may need to adapt our practices to accommodate these circumstances in order to determine a best estimate of our losses from a catastrophe.

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

First Quarter 2026 Form 10-Q 47

(1)Includes reinsurance recoveries.

(2)Gross losses before reinsurance recoverables and reinstatement premiums were $3.33 billion.

Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide shareholders with long-term returns on the risks assumed in our property business, reduce earnings volatility, and provide protection to our customers. The current catastrophe reinsurance program supports our risk and return framework which incorporates robust economic capital modeling and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires. As of December 31, 2025, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils was approximately $3.1 billion, net of reinsurance. We continually review our aggregate risk appetite and the cost and availability of reinsurance to optimize the risk and return profile of this exposure.

Similar to our 2025 program, our 2026 program includes coverage for losses to personal lines property, personal lines automobile, commercial lines property or commercial lines automobile arising out of multiple perils, in addition to hurricanes, earthquakes and wildfires.

The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the first quarter of 2026 was $308 million, compared to $257 million in the first quarter of 2025. Catastrophe placement premiums reduce net written and earned premium with approximately 83% of the reduction related to homeowners premium.

(1)Programs or contracts updated in the first quarter of 2026.

(2)Updates to programs or contracts will be completed in the second quarter of 2026.

The Nationwide Excess Catastrophe Reinsurance Program (the “Nationwide Program”) reinsures personal lines property and automobile losses arising out of multiple perils including, but not limited to, hurricane, windstorm, hail, tornado, earthquake, fires following earthquakes and wildfires in all states, excluding personal lines property in the state of Florida. It includes coverage for commercial lines property and automobile (physical damage only) in all states,

excluding commercial lines property in the state of Florida. The Nationwide Program includes coverage on both a per occurrence and aggregate basis through reinsurance agreements placed with traditional reinsurers and in the Insurance-Linked Securities (“ILS”) markets utilizing catastrophe bonds.

Nationwide Per Occurrence provides per occurrence coverage for events up to $11.50 billion of loss less a $1.00 billion retention and is subject to the

48 www.allstate.com percentage of reinsurance placed in each of its agreements. Eligible losses inure to the benefit of the Aggregate covers.

•Contracts between $1.00 billion and $4.75 billion:

–Provide $3.75 billion of multi-year coverage with traditional reinsurers subject to a $1.00 billion retention with one automatic reinstatement of limits requiring additional premium due.

•Contracts between $4.75 billion and $6.75 billion:

–Provide $1.05 billion of coverage placed with traditional reinsurers, with one automatic reinstatement of limits with additional premium due

–$950 million of catastrophe bond coverage capacity that is not eligible for reinstatement of limits

•Contracts between $6.75 billion and $11.50 billion:

–Provide $4.75 billion of coverage with $2.50 billion placed with traditional reinsurers with no reinstatement of limits and $2.25 billion placed as catastrophe bonds that are not eligible for reinstatement of limits

Nationwide Aggregate Contract is a contract placed in the ILS market and provides $150 million of placed limits for total losses between $4.78 billion and $5.28 billion, applicable to multi-peril losses above $50 million per event, excluding Florida.

Aggregate Excess Catastrophe Reinsurance Contract is placed in the traditional market and provides $1.00 billion of placed limits in excess of an $8.50 billion retention for U.S. property and auto lines catastrophe events, including the state of Florida.

Canada Catastrophe Excess of Loss Reinsurance Contract is placed in the traditional market and provides CAD 577 million of placed limits, subject to a CAD 100 million retention, with one reinstatement of limits.

Kentucky Earthquake Excess Catastrophe Reinsurance Contract is a three-year term contract placed in the traditional market and provides $28 million of placed limits, subject to a $2 million retention with one reinstatement of limits.

Prior year reserve reestimates Reserve reestimates, including catastrophes, decreased reserves by $1.00 billion in the first quarter of 2026.

Favorable auto severity, excluding catastrophes, emergence continued during the quarter, reflecting improved prior period loss development and better than expected claim outcomes. In the three months ended March 31, 2026, auto reserve releases included $675 million related to auto injury coverages and $163 million of other auto coverages.

Approximately 70% of the auto injury reserve releases relate to accident years 2023 and 2024. Approximately 90% of other auto reserve releases relate to physical damage coverage from accident years 2024 and 2025, with 97% of estimated ultimate losses paid as of March 31, 2026.

For the three months ended March 31, 2026, the reserve releases from homeowners, other personal lines and commercial lines relate to better than expected severity developments in homeowners and consumer household property damage and injury coverages.

For a more detailed discussion on reinsurance and reserve reestimates, see Note 8 of the condensed consolidated financial statements.

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

First Quarter 2026 Form 10-Q 49

Expense ratio decreased 0.1 point in the first quarter of 2026, compared to the first quarter of 2025.

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