ALLSTATE CORP
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
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.
Jun 30, 2026 · Filed Aug 5, 2026
ALL$254.81-4.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0000899051-26-000075
HighlightsProperty-LiabilityAllstate ProtectionRun-off Property-LiabilityProtection ServicesInvestmentCapital Resources and LiquidityForward-Looking StatementsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0000899051-26-000118
HighlightsProperty-LiabilityAllstate ProtectionRun-off Property-LiabilityProtection ServicesInvestmentCapital Resources and LiquidityForward-Looking StatementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 239 previous paragraphs and 232 current paragraphs.
101 unchanged; 89 reworded; 35 added; 43 removed; 6 previous and 7 current paragraphs rearranged.
Tables are not compared: 36 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
•PIF increased 2.8% or 708 thousand to 25,951 thousand as of June 30, 2026 compared to June 30, 2025
Current report
•PIF increased 2.9% or 223 thousand to 7,819 thousand as of June 30, 2026 compared to June 30,
Current report
Commercial lines premiums written increased 21.0% or $21 million in the second quarter of 2026 compared to the second quarter of 2025 and increased 20.1% or $39 million in the first six months of 2026
Current report
Brokered solutions and collateral protection premiums written decreased 35.1% or $54 million in the second quarter of 2026 compared to the second quarter of 2025 and decreased 22.3% or $73 million in the first six months of 2026 compared to the first six months of 2025, due to lower premiums from lender-placed agent business.
Current report
Auto loss ratio decreased 3.6 points and decreased 6.1 points in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, driven by the benefit of prior year reserve releases, excluding catastrophes. Estimated report
Current report
Commercial lines loss ratio decreased 13.6 points in the second quarter of 2026 compared to the second quarter of 2025, primarily due to prior year reserve releases in the current year compared to prior year reserve strengthening in the prior year. Commercial lines loss ratio decreased 7.0 points in the first six months of 2026 compared to the first six months of 2025, primarily due to lower losses, including the benefit of prior year reserve releases, partially offset by a decrease in premiums earned.
Current report
Brokered solutions and collateral protection loss ratio increased 7.4 points in the second quarter of 2026, compared to the second quarter of 2025, primarily due to lower premiums earned and higher catastrophe losses. Brokered solutions and collateral protection loss ratio decreased 3.7 points in the first six months of 2026 compared to the first six months of 2025, primarily due to lower losses, partially offset by a decrease in premiums earned and lower prior year reserve releases.
Current report
The Company is pursuing subrogation recoveries related to the January 2025 California wildfires. No amounts have been recognized for these potential recoveries. Any ultimate recovery is expected to primarily benefit the Company's reinsurers, with the Company's direct benefit principally related to reinsurance reinstatement premiums.
Current report
Florida Program Our 2026 Florida Program provides coverage for property policies of CKIC, CKI
Current report
and affiliated companies for Florida catastrophe events
Current report
The Florida Program includes reinsurance agreements placed in the traditional market, Florida Hurricane Catastrophe Fund (“FHCF”) and the insurance-linked securities (“ILS”) market as follows:
Current report
–First event coverage provides $55 million of reinsurance limit, with $25 million placed with traditional reinsurers and $30 million placed as a catastrophe bond, and is not eligible for reinstatement of limits
Current report
–Second event coverage is placed with traditional reinsurers, with $55 million of reinsurance limit
Current report
–Provide $149 million of limits, 90% placed (totaling $134 million of placed limit) for qualifying losses to personal lines property in Florida caused by storms the National Hurricane Center declares to be hurricanes. These contracts inure to the benefit of all other reinsurance and do not have reinstatement provisions
Current report
–Provide $150 million of limit placed with traditional reinsurers for a first event, with one automatic reinstatement of limits, with premium due. A separate contract offsets the full amount of this reinstatement premium
Current report
•Contracts between $369 million and $719 million provide $350 million of limit placed as two catastrophe bonds and are not eligible for reinstatement of limits.
Current report
•Contracts between $719 million and $934 million provide $215 million of limit placed with traditional reinsurers for a first event, with one automatic reinstatement of limits, with additional premium due. A separate contract offsets the full amount of this reinstatement premium.
Current report
National General Lender Services Standalone Program is placed in the traditional market and provides coverage for catastrophe events up to $350 million of loss less a $70 million retention, with
Current report
one automatic reinstatement of limits, with additional premium due. The National General FHCF contract provides additional coverage for Florida hurricane events, for a combined coverage for such catastrophe events of $443 million of loss less a $63 million retention.
Current report
During the first six months of 2026, favorable auto severity, excluding catastrophes, reflected improved prior period loss development and better than expected claim outcomes. Auto reserve releases during the first six months of 2026 included $1.27 billion related to auto injury coverages and $205 million related to other auto coverages. Approximately 30% of auto injury coverage reserve releases related to accident year 2025 and approximately 51% to 2023 and 2024.
Current report
For the second quarter and first six months of 2026, reserve releases in homeowners were primarily driven by favorable severity assumptions, offset by catastrophe reserve increases. Reserve releases in specialty lines and commercial lines were primarily driven by favorable large loss experience in personal umbrella coverage and improved commercial auto injury severity.
Current report
Expense ratio increased 1.0 point and increased 0.4 points in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025 primarily due to higher advertising and legal expenses, partially offset by higher earned premium growth relative to costs.
Current report
Adjusted net income decreased 11.7% or $7 million in the second quarter of 2026 and decreased 13.0% or $15 million in the first six months of 2026 compared to the same periods of 2025, primarily reflecting lower margins on major appliances at Protection Plans.
Current report
Operating costs and expenses increased 6.9% or $20 million in the second quarter of 2026 and increased 3.3% or $20 million in the first six months of 2026 compared to the same periods of 2025, primarily due to expenses related to growth at Protection Plans.
Current report
Performance-based investment income increased $160 million in the second quarter of 2026 and increased 62.2% or $171 million in the first six months of 2026 compared to the same periods of 2025 primarily due to higher real estate and private equity valuation increases. Income in the second quarter of 2026 was concentrated among a small number of investments, with the top 10 investments contributing approximately 88% of performance-based income, while the broader portfolio generated modest returns.
Removed paragraphs (43)
Previous report
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:
Previous report
•Higher new and used vehicle pricing and replacement parts, increasing claims costs in Allstate Protection and Dealer Services
Previous report
•Increases in building material costs, driving increases in homeowners claim costs
Previous report
•Lack of availability of replacement parts from disruption in global trade broadly impacting all businesses
Previous report
•Fewer auto new issued applications due to lower new and used vehicle sales
Previous report
•Reduced demand in Dealer Services due to lower new vehicle sales
Previous report
•Lower premiums written from reduced U.S. retail sales in Protection Plans
Previous report
•Increased bad debt expense and credit allowance exposure as consumer financial conditions deteriorate
Previous report
•Unfavorable impacts on investment valuations, liquidity and returns due to volatility in broader financial markets, interest rates and energy prices
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This is not inclusive of all potential impacts and should not be treated as such.
Previous report
•PIF increased 2.6% or 658 thousand to 25,758 thousand as of March 31, 2026 compared to March 31, 2025
Previous report
commercial products, including brokered solutions, to customers through our exclusive agency, independent agency and direct channels.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
(2)Updates to programs or contracts will be completed in the second quarter of 2026.
Previous report
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,
Previous report
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.
Previous report
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
Previous report
48 www.allstate.com percentage of reinsurance placed in each of its agreements. Eligible losses inure to the benefit of the Aggregate covers.
Previous report
•Contracts between $1.00 billion and $4.75 billion:
Previous report
–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.
Previous report
•Contracts between $4.75 billion and $6.75 billion:
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–Provide $1.05 billion of coverage placed with traditional reinsurers, with one automatic reinstatement of limits with additional premium due
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–$950 million of catastrophe bond coverage capacity that is not eligible for reinstatement of limits
Previous report
•Contracts between $6.75 billion and $11.50 billion:
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–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
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
Expense ratio decreased 0.1 point in the first quarter of 2026, compared to the first quarter of 2025.
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Reworded paragraphs (89)
Previous wording
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.
Current wording
Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity. These conditions include U.S. government fiscal and monetary policies, tariff measures, major combat operations in Iran, the Russia/Ukraine conflict, supply chain disruptions, volatility in global energy markets and labor availability. 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.
Previous wording
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.
Current wording
Consolidated net income applicable to common shareholders increased $1.16 billion to $3.24 billion in the second quarter of 2026 and increased $3.02 billion to $5.67 billion in the first six months of 2026 compared to the same periods of 2025, primarily due to higher underwriting income and valuation gains on equity investments.
Previous wording
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.
Current wording
Total revenue increased 11.8% to $18.60 billion in the second quarter of 2026 and increased 7.4% to $35.54 billion in the first six months of 2026 compared to the same periods of 2025, primarily due to higher auto and homeowners insurance policies in force and valuation gains on equity investments.
Previous wording
Net investment income increased $84 million to $938 million in the first quarter of 2026, primarily due to higher market-based investment results.
Current wording
Net investment income increased $255 million to $1.01 billion in the second quarter of 2026 and increased $339 million to $1.95 billion in the first six months of 2026 compared to the same periods of 2025, primarily due to higher market-based and performance-based investment results.
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Investments totaled $85.16 billion as of March 31, 2026, increasing from $83.24 billion as of December 31, 2025.
Current wording
Investments totaled $87.80 billion as of June 30, 2026, increasing from $83.24 billion as of December 31, 2025.
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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.
Current wording
Allstate shareholders’ equity was $33.70 billion as of June 30, 2026, increasing from $30.61 billion as of December 31, 2025, primarily due to net income, partially offset by common share repurchases, dividends to shareholders and unrealized net capital losses.
Previous wording
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.
Current wording
Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $123.38 as of June 30, 2026, an increase of 49.7% from $82.40 as of June 30, 2025, and an increase of 13.8% from $108.45 as of December 31, 2025.
Previous wording
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.
Current wording
Return on average Allstate common shareholders’ equityfor the twelve months ended June 30, 2026, was 49.1%, an increase of 19.5 points from 29.6% for the twelve months ended June 30, 2025.
Previous wording
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.
Current wording
Underwriting income increased $723 million and increased $3.02 billion in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, primarily due to an increase in premiums earned, lower catastrophe losses and the benefit of prior year reserve releases, partially offset by higher expenses.
Previous wording
(2)Other business lines represents commissions earned from brokered property and casualty and life and annuity products, and lender-placed products.
Current wording
(2)Brokered solutions and collateral protection includes brokered property and casualty and life and annuity products, and lender-placed products.
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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:
Current wording
Auto insurance premiums written increased $39 million in the second quarter of 2026 compared to the second quarter of 2025 and increased $41 million in the first six months of 2026 compared to the first six months of 2025, primarily due to the following factors:
Previous wording
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:
Current wording
Homeowners insurance premiums written increased 8.1% or $357 million in the second quarter of 2026 compared to the second quarter of 2025 and increased 8.2% or $645 million in the first six months of 2026 compared to the first six months of 2025, primarily due to the following factors:
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•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
Current wording
•In the six months ended June 30, 2026, rate increases of 4.9% were implemented resulting in a total estimated insurance premium impact of 1.3%, excluding the impact of changes in insured home replacement costs
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•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
Current wording
2025, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel
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•Increased new issued applications in direct and exclusive agency channels
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•Increased new issued applications in all channels
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In Florida, we are not writing new homeowners business and are substantially complete with the non-renewal of certain policies.
Current wording
In Florida, we are not writing new homeowners business and completed the non-renewal of certain policies during the second quarter of 2026. In California, we write a limited amount of new homeowners business through North Light Specialty Insurance Company, our excess and surplus lines carrier.
Previous wording
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.
Current wording
Specialty lines premiums written increased 2.4% or $21 million in the second quarter of 2026 compared to the second quarter of 2025 and increased 3.8% or $60 million in the first six months of 2026 compared to the first six months 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. In Florida, we are not writing new condominium business and we completed the non-renewal of certain policies during the second quarter of 2026.
Previous wording
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
Current wording
compared to the first six months of 2025, primarily due to an increase in new issued applications and higher average premiums from current offerings.
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(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.
Current wording
(1)Expense ratio includes other revenue of $42 million and $86 million for the three and six months ended June 30, 2026, respectively, compared to $47 million and $91 million for the three and six months ended June 30, 2025, respectively, for fees on auto assigned risk policies.
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(1)The ten-year average effect of first quarter catastrophe losses on the total combined ratio was 8.4 points.
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(1)The ten-year average effect of total catastrophe losses on the total combined ratio was 13.5 points and 11.0 points in the second quarter and first six months of 2026, respectively.
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(2)The ten-year average effect of first quarter homeowners catastrophe losses on the total homeowners combined ratio was 28.3 points.
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(2)The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 43.5 points and 36.0 points in the second quarter and first six months of 2026, respectively.
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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.
Current wording
year 2026 incurred claim severity for Allstate brand increased compared to report year 2025 for major coverages, reflecting ongoing inflationary pressures, including rising medical costs and continued increases in attorney representation.
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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.
Current wording
Homeowners loss ratio decreased 8.8 points and decreased 19.4 points in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, primarily due to increased premiums earned and lower catastrophe losses. Gross claim frequency, excluding catastrophes, increased in the second quarter and first six months of 2026 compared to the same periods of 2025. Paid claim severity, excluding catastrophes, increased in the second quarter and first six months of 2026 compared to the same periods of 2025, 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.
Previous wording
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.
Current wording
Specialty lines loss ratio decreased 17.6 points and decreased 22.4 points in the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, primarily due to the benefit of prior year reserve releases, excluding catastrophes, lower catastrophe losses and increased premiums earned.
Previous wording
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.
Current wording
Catastrophe losses decreased $268 million to $1.72 billion in the second quarter of 2026 compared to the second quarter of 2025. Catastrophe losses decreased $1.23 billion to $2.96 billion in the first six months of 2026 compared to the first six months of 2025. Results in 2025 included $1.11 billion of losses related to the California wildfire events.
Previous wording
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.
Current wording
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.
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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.
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We are also exposed to man-made catastrophic events, such as wildfires, terrorism, civil unrest, or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted.
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(2)Gross losses before reinsurance recoverables and reinstatement premiums were $3.33 billion.
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(2)Gross losses before reinsurance recoverables and reinstatement premiums were $5.22 billion.
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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.
Current wording
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 June 30, 2026, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils was
Previous wording
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.
Current wording
The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the second quarter and first six months of 2026 was $378 million and $686 million, respectively, compared to $305 million and $562 million in the second quarter and first six months of 2025. Catastrophe placement premiums reduce net written and earned premium with approximately 83% of the reduction related to homeowners premium.
Current wording
Second Quarter 2026 Form 10-Q 53 up to $934 million of property loss less a $30 million retention.
Previous wording
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.
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National General Flood Excess of Loss Reinsurance Contract provides $60 million of placed limits, subject to a $20 million retention, with one automatic reinstatement of limits, with additional premium due.
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Prior year reserve reestimates Reserve reestimates, including catastrophes, decreased reserves by $1.00 billion in the first quarter of 2026.
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Prior year reserve reestimates, including catastrophes, decreased reserves by $641 million in the second quarter of 2026 and $1.65 billion in the first six months of 2026.
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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.
Current wording
During the second quarter of 2026, favorable auto severity, excluding catastrophes, reflected improved prior period loss development and better than expected claim outcomes. Auto reserve releases for the second quarter of 2026 included $597 million related to auto injury coverages and $42 million related to other auto coverages. Approximately 51% of auto injury coverage reserve releases related to accident year 2025 and approximately 33% to 2023 and 2024.
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First Quarter 2026 Form 10-Q 55 the credit quality, sector, structure and liquidity risks of each issuer.
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(1)Approximately 65% and 66% of gross case reserves as of March 31, 2026 and December 31, 2025, respectively, are subject to settlement agreements that define and limit our obligations.
Current wording
(1)Approximately 57% and 66% of gross case reserves as of June 30, 2026 and December 31, 2025, respectively, are subject to settlement agreements that define and limit our obligations.
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Change in underwriting results from prior year period - six months ended
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approximately $3.2 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.
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(2)Programs or contracts updated in the second quarter of 2026.
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limited partnerships. These investments include investee level expenses, reflecting asset level operating expenses on directly held real estate and other consolidated investments.
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As of June 30, 2026, 92.2% of the consolidated fixed income securities portfolio was rated investment
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Second Quarter 2026 Form 10-Q 61
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•As of June 30, 2026, there were no balances outstanding for the credit facility or the commercial paper facility, and therefore the remaining borrowing capacity was $750 million.
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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
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We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party
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internally established thresholds. For further detail on our fixed income portfolio monitoring process, see Note 4 of the condensed consolidated financial statements.
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MBS includes residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). RMBS is subject to interest rate risk, but unlike other fixed income securities, is additionally subject to prepayment risk from the
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56 www.allstate.com mortgage loan portfolio, see Note 4 of the condensed consolidated financial statements.
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commitments to invest additional amounts in limited partnership interests totaling $3.20 billion as of March 31, 2026.