ALLSTATE CORP

Overview

The following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the condensed consolidated financial statements and related notes thereto found under Part I. Item 1. contained herein, and with the discussion, analysis, consolidated financial statements and notes thereto in Part I. Item 1. and Part II. Item 7. and Item 8. of The Allstate Corporation annual report on Form 10-K for 2025.

Further analysis of our insurance segments Allstate Protection and Run-off Property-Liability, together Property-Liability Operations, and Protection Services, is provided in Management’s Discussion and Analysis (“MD&A”). The segments are consistent with the way in which the chief operating decision maker reviews financial performance and makes decisions about the allocation of resources.

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. We use these measures in our evaluation of results of operations to analyze profitability.

Underwriting income (loss)is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), amortization of deferred policy acquisition costs (“DAC”), operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, as determined using GAAP.

Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding:

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, major combat operations in Iran, the Russia/Ukraine conflict, supply chain disruptions, volatility in global energy markets and labor shortages. Increased oil prices may contribute to higher transportation, manufacturing and repair costs. If

sustained, these conditions may change claims frequency in auto coverages and may increase severity in auto and homeowners coverages and place additional pressure on operating costs and consumer affordability. We continue to monitor these conditions and reflect our current expectations in pricing and reserving; however, uncertainty remains regarding the extent and duration of these impacts.

Tariffs The U.S. implemented and continues to modify tariff measures and pursue additional trade actions, contributing to uncertainty in global trade policy, inflation and supply chains. These costs are embedded within overall claims severity and are influenced by energy and commodity input costs, supply chain conditions, labor availability and broader economic trends. We evaluate scenarios to understand the potential impact of tariffs on our businesses and incorporate estimates of the impact into our development of reserves for claims. The evolving and uncertain global trade environment makes it difficult to predict the full effect on our business, and it may take time for the impact of inflation to become evident. Adverse effects could include:

•Higher new and used vehicle pricing and replacement parts, increasing claims costs in Allstate Protection and Dealer Services

•Increases in building material costs, driving increases in homeowners claim costs

•Lack of availability of replacement parts from disruption in global trade broadly impacting all businesses

•Fewer auto new issued applications due to lower new and used vehicle sales

•Reduced demand in Dealer Services due to lower new vehicle sales

•Lower premiums written from reduced U.S. retail sales in Protection Plans

•Higher claims costs at Protection Plans

•Increased bad debt expense and credit allowance exposure as consumer financial conditions deteriorate

•Unfavorable impacts on investment valuations, liquidity and returns due to volatility in broader financial markets, interest rates and energy prices

This is not inclusive of all potential impacts and should not be treated as such.

Corporate strategy

Our strategy has two components: increase personal property-liability market share and expand protection offerings by leveraging the Allstate brand, customer base and capabilities.

Transformative Growth is a comprehensive plan to improve Allstate’s competitive position by providing affordable, simple and connected protection through multiple distribution methods. The ultimate objective is to enhance customer value to drive growth in all businesses.

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In the personal property-liability businesses, this has five key components:

•Improving customer value

•Expanding customer access

•Increasing sophistication and investment in customer acquisition

•Deploying new technology ecosystems

•Driving organizational transformation

We are expanding Protection Services businesses internationally and by leveraging the Allstate brand, customer base and capabilities.

Financial Highlights

($ in millions)

Consolidated net income applicable to common shareholders increased $1.86 billion to $2.43 billion in the first quarter of 2026 compared to the first quarter of 2025, primarily due to higher underwriting income.

Total revenue increased 3.0% to $16.94 billion in the first quarter of 2026 compared to the first quarter of 2025, primarily due to higher auto and homeowners insurance policies in force and to a lesser extent homeowners premium rate increases.

Net investment income increased $84 million to $938 million in the first quarter of 2026, primarily due to higher market-based investment results.

Financial highlights

Investments totaled $85.16 billion as of March 31, 2026, increasing from $83.24 billion as of December 31, 2025.

Allstate shareholders’ equity was $31.61 billion as of March 31, 2026, increasing from $30.61 billion as of December 31, 2025, primarily due to net income, partially offset by common share repurchases, unrealized net capital losses and dividends to shareholders.

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $113.52 as of March 31, 2026, an increase of 52.2% from $74.61 as of March 31, 2025, and an increase of 4.7% from $108.45 as of December 31, 2025.

Return on average Allstate common shareholders’ equityfor the twelve months ended March 31, 2026, was 48.4%, an increase of 27.0 points from 21.4% for the twelve months ended March 31, 2025. The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending March 31, 2026.

First Quarter 2026 Form 10-Q 41