ALLSTATE CORP
For the period ended Sep 30, 2026. Filed Nov 4, 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.
Sep 30, 2026 · Filed Nov 4, 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 2026-06-30; filed 2026-08-05.
0000899051-26-000118
HighlightsProperty-LiabilityAllstate ProtectionRun-off Property-LiabilityProtection ServicesInvestmentCapital Resources and LiquidityForward-Looking StatementsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0000899051-26-000157
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 232 previous paragraphs and 227 current paragraphs.
105 unchanged; 86 reworded; 29 added; 38 removed; 3 previous and 7 current paragraphs rearranged.
Tables are not compared: 37 previous and 36 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 (29)
Current report
In October 2026, Arity, a subsidiary of The Allstate Corporation, acquired substantially all of the assets of INRIX, Inc., a provider of transportation intelligence and mobility analytics. The acquisition expands Arity’s mobility data and analytics capabilities. Certain acquisition-related disclosures are not yet available due to the timing of the transaction. In November 2026, Arity entered into a definitive agreement to acquire the remaining ownership of Replica, a mobility data and technology company. The acquisition is expected to close before the end of 2026, subject to customary closing conditions.
Current report
Consolidated net income applicable to common shareholders decreased $1.67 billion to $2.05 billion in the third quarter of 2026 compared to the third quarter of 2025, primarily due to increased catastrophe losses, a gain on sale of the group health business in 2025 and net losses on investments and derivatives, partially offset by increased premiums earned. Net income increased $1.36 billion to $7.72 billion in the first nine months of 2026 compared to the first nine months of 2025, primarily due to higher underwriting income, net investment income, and valuation gains on equity investments, partially offset by gains on the sales of the employer voluntary benefits and group health businesses in 2025.
Current report
Total revenues increased 0.5% to $17.35 billion in the third quarter of 2026 compared to the third quarter of 2025, primarily due to higher auto and homeowners insurance policies in force, homeowners insurance average premium and net investment income, partially offset by net losses on investments and derivatives. Total revenues increased 5.1% to $52.89 billion in the first nine months of 2026 compared to the first nine months of 2025, primarily due to higher auto and homeowners insurance policies in force, homeowners insurance average premium, net investment income and valuation gains on equity investments.
Current report
Underwriting income decreased $800 million in the third quarter of 2026 compared to the third quarter of 2025, due to higher losses, primarily from catastrophes, and increased expenses partially offset by an increase in earned premiums and the benefit of prior year reserve releases. Underwriting income increased $2.22 billion in the first nine months of 2026 compared to the first nine months of 2025, primarily due to an increase in premiums earned and the benefit of prior year reserve releases, partially offset by higher losses, excluding catastrophes, and increased expenses.
Current report
•Increased new issued applications driven by growth in the independent agency and direct channels
Current report
during the quarter and across all channels year-to-date
Current report
•PIF increased 3.4% or 872 thousand to 26,204 thousand as of September 30, 2026 compared to September 30, 2025
Current report
•PIF increased 3.3% or 254 thousand to 7,896 thousand as of September 30, 2026 compared to September 30, 2025
Current report
•Increased new issued applications driven by growth in the independent agency and direct channels during the quarter and across all channels year-to-date
Current report
Commercial lines loss ratio increased 51.9 points and increased 10.3 points in the third quarter and first nine months of 2026, respectively, compared to the same periods of 2025, primarily due to lower prior year reserve releases.
Current report
Expense ratio increased 0.2 points in the third quarter of 2026 compared to the third quarter of 2025 primarily due to an increase in amortization of DAC, higher expenses related to premium growth, employee-related costs and restructuring expenses. Expense ratio increased 0.4 points in the first nine months of 2026 compared to the first nine months of 2025 due to an increase in amortization of DAC, higher advertising, expenses related to premium growth and employee-related costs.
Current report
Annual reserve review In the third quarter of 2026 and 2025, we performed our annual reserve review using established industry and actuarial best practices. The annual review resulted in reserve reestimates that increased reserves by $216 million and $146 million in 2026 and 2025, respectively. The reserve reestimates are included as part of claims and claims expense.
Current report
The reserve reestimates in 2026 were primarily driven by higher claim frequency and severity for asbestos claims and emerging claims activity and expected settlement values on environmental and other mass tort claims.
Current report
The reserve reestimates in 2025 were primarily related to new reported information for asbestos
Current report
claims, new reported claims for environmental and other mass tort claims and increased projections for claims expenses.
Current report
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.
Current report
Adjusted net income increased 39.1% or $18 million in the third quarter of 2026 compared to the third quarter of 2025, primarily reflecting improved profitability at Protection Plans driven by higher gross margins and reduced operating expenses. Adjusted net income increased 1.9% or $3 million in the first nine months of 2026 compared to the first nine months of 2025, primarily reflecting growth at Roadside.
Current report
Other revenue remained stable in the third quarter of 2026 and increased 0.3% or $1 million in the first nine months of 2026 compared to the same periods of 2025.
Current report
Intersegment premiums and service fees increased 30.3% or $10 million in the third quarter of 2026 and increased 2.8% or $3 million in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by Arity, partially offset by Roadside.
Current report
As of September 30, 2026, fixed income securities, short-term investments and fixed income funds
Current report
Net investment income increased 24.0% or $228 million in the third quarter of 2026 and increased 22% or $567 million in the first nine months of 2026 compared to the same periods of 2025, primarily related to growth in market-based income from increased average investment balances and higher fixed income yields and higher performance-based investment results.
Current report
Performance-based investment income increased 56.4% or $128 million in the third quarter of 2026 and increased 59.6% or $299 million in the first nine months of 2026 compared to the same periods of 2025 primarily due to private equity valuation increases. Performance-based investment income in the first nine months of 2026 also benefitted from real estate valuation increases.
Current report
In August 2026, S&P affirmed The Allstate Corporation’s (the “Corporation”) senior debt and short-term issuer ratings of BBB+ and A-2, respectively, and Allstate Insurance Company’s (“AIC”) insurance financial strength rating of A+. The outlook for the ratings changed from stable to positive.
Current report
In September 2026, A.M. Best affirmed the Corporation’s senior debt and short-term issuer ratings of a- and AMB-1, respectively, and AIC’s insurance financial strength rating of A+. The outlook for the ratings is stable.
Removed paragraphs (38)
Previous report
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 report
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 report
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 report
•Increased new issued applications in all channels
Previous report
•PIF increased 2.8% or 708 thousand to 25,951 thousand as of June 30, 2026 compared to June 30, 2025
Previous report
•PIF increased 2.9% or 223 thousand to 7,819 thousand as of June 30, 2026 compared to June 30,
Previous report
2025, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel
Previous report
•Increased new issued applications in all channels
Previous 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
Previous 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
Previous 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.
Previous report
(1)Programs or contracts updated in the first quarter of 2026.
Previous report
(2)Programs or contracts updated in the second quarter of 2026.
Previous report
Florida Program Our 2026 Florida Program provides coverage for property policies of CKIC, CKI
Previous report
and affiliated companies for Florida catastrophe events
Previous 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:
Previous 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
Previous report
–Second event coverage is placed with traditional reinsurers, with $55 million of reinsurance limit
Previous 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
Previous 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
Previous 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.
Previous 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.
Previous 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
Previous 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.
Previous report
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.
Previous 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.
Previous 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.
Previous report
Other revenue increased 10.8% or $12 million in the second quarter of 2026 compared to the second quarter of 2025, primarily due to higher lead generation revenue at Arity.
Previous report
Intersegment premiums and service fees decreased 9.6% or $7 million in the first six months of
Previous report
2026 compared to the first six months of 2025, primarily driven by Arity and Roadside.
Previous report
Given this composition, the portfolio is well positioned in the current market environment, with risk characteristics that differ from areas of the private credit market experiencing heightened volatility.
Previous report
As of June 30, 2026, 92.2% of the consolidated fixed income securities portfolio was rated investment
Previous report
Net investment income increased 33.8% or $255 million in the second quarter of 2026 and increased 21% or $339 million in the first six months of 2026 compared to the same periods of 2025, primarily related to higher market-based income resulting from higher average investment balances and improved performance-based investment results.
Previous 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.
Reworded paragraphs (86)
Previous 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.
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, military conflicts, 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
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.
Current wording
Net investment income increased $228 million to $1.18 billion in the third quarter of 2026 and increased $567 million to $3.12 billion in the first nine months of 2026 compared to the same periods of 2025, due to both higher market-based and performance-based investment results.
Previous wording
Investments totaled $87.80 billion as of June 30, 2026, increasing from $83.24 billion as of December 31, 2025.
Current wording
Investments totaled $87.38 billion as of September 30, 2026, increasing from $83.24 billion as of December 31, 2025.
Previous 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.
Current wording
Allstate shareholders’ equity was $32.31 billion as of September 30, 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.
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 $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.
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 $120.23 as of September 30, 2026, an increase of 25.3% from $95.95 as of September 30, 2025, and an increase of 10.9% from $108.45 as of December 31, 2025.
Previous 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.
Current wording
Return on average Allstate common shareholders’ equityfor the 12 months ended September 30, 2026, was 41.3%, an increase of 4.1 points from 37.2% for the 12 months ended September 30, 2025.
Previous wording
For segment results, services provided by Protection Services to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective segments. The effects of inter-segment transactions are eliminated in the consolidated results.
Current wording
For segment results, services provided by Protection Services to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective segments. The effects of intersegment transactions are eliminated in the consolidated results.
Previous wording
•Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, typically six months for an auto policy and twelve months for a homeowners policy.
Current wording
•Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, typically six months for an auto policy and 12 months for a homeowners policy.
Previous wording
(2)Brokered solutions and collateral protection includes 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, Answer Financial and lender-placed products.
Previous wording
Change in underwriting results from prior year period - six months ended
Current wording
Change in underwriting results from prior year period - nine months ended
Previous 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:
Current wording
Auto insurance premiums written increased $15 million in the third quarter of 2026 compared to the third quarter of 2025 and increased $56 million in the first nine months of 2026 compared to the first nine months of 2025, primarily due to the following factors:
Previous 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:
Current wording
Homeowners insurance premiums written increased 7.4% or $343 million in the third quarter of 2026 compared to the third quarter of 2025 and increased 7.9% or $988 million in the first nine months of 2026 compared to the first nine months of 2025, primarily due to the following factors:
Previous 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
Current wording
•In the nine months ended September 30, 2026, rate increases of 4.8% were implemented resulting in a total estimated insurance premium impact of 1.8%, excluding the impact of changes in insured home replacement costs
Previous 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.
Current wording
Specialty lines premiums written increased 4.1% or $36 million in the third quarter of 2026 compared to the third quarter of 2025 and increased 3.9% or $96 million in the first nine months of 2026 compared to the first nine 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
compared to the first six months of 2025, primarily due to an increase in new issued applications and higher average premiums from current offerings.
Current wording
Commercial lines premiums written increased 13.9% or $14 million in the third quarter of 2026 compared to the third quarter of 2025 and increased 18.0% or $53 million in the first nine months of 2026 compared to the first nine months of 2025, primarily due to an increase in new issued applications and higher average premiums from current offerings.
Previous wording
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 wording
Brokered solutions and collateral protection premiums written decreased 10.8% or $18 million in the third quarter of 2026 compared to the third quarter of 2025 and decreased 18.5% or $91 million in the first
Previous 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.
Current wording
(1)Expense ratio includes other revenue of $27 million and $113 million for the three and nine months ended September 30, 2026, respectively, compared to $43 million and $134 million for the three and nine months ended September 30, 2025, respectively, for fees on auto assigned risk policies.
Previous wording
(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.
Current wording
(1)The ten-year average effect of total catastrophe losses on the total combined ratio was 9.1 points and 10.3 points in the third quarter and first nine months of 2026, respectively.
Previous wording
(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.
Current wording
(2)The ten-year average effect of homeowners catastrophe losses on the total homeowners combined ratio was 26.3 points and 32.7 points in the third quarter and first nine months of 2026, respectively.
Previous 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.
Current wording
Auto loss ratio increased 1.0 point in the third quarter of 2026 compared to the third quarter of 2025, driven by higher losses, partially offset by the benefit of prior year reserve releases. The third quarter of 2026 benefited from 1.6 points of favorable development for claims reported in the first half of 2026. Auto loss ratio decreased 3.7 points in the first nine months of 2026 compared to the first nine months of 2025, driven by the benefit of prior year reserve releases, excluding catastrophes. Estimated report 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.
Previous 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.
Current wording
Homeowners loss ratio increased 18.7 points in the third quarter of 2026 compared to the third quarter of 2025, primarily due to higher catastrophe losses, partially offset by an increase in premiums earned. The third quarter of 2026 benefited from 1.8 points of favorable development for claims reported in the first half of 2026. Homeowners loss ratio decreased 6.3 points in the first nine months of 2026 compared to the first nine months of 2025, primarily due to lower catastrophe losses and increased premiums earned. Gross claim frequency, excluding catastrophes, increased in the third quarter and first nine months of 2026 compared to the same periods of 2025. Paid claim severity, excluding catastrophes, increased in the third quarter and first nine 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
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.
Current wording
Specialty lines loss ratio decreased 6.6 points in the third quarter of 2026 compared to the third quarter of 2025, primarily due to lower reserve strengthening partially offset by higher catastrophe losses. Specialty lines loss ratio decreased 16.9 points in the first nine months of 2026 compared to the first nine months of 2025, primarily due to the benefit of prior year reserve releases, excluding catastrophes, and increased premiums earned.
Previous wording
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 wording
Brokered solutions and collateral protection loss ratio increased 10.1 points in the third quarter of 2026, compared to the third quarter of 2025, primarily due to higher catastrophe losses and lower premiums earned. Brokered solutions and collateral protection loss ratio increased 0.8 points in the first nine months of 2026 compared to the first nine months of 2025, primarily due to a decrease in premiums earned and lower prior year reserve releases, partially offset by lower non-catastrophe losses.
Previous 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.
Current wording
Catastrophe losses increased $1.09 billion to $1.65 billion in the third quarter of 2026 compared to the third quarter of 2025, driven by two large wind/hail events and more frequent smaller events. Catastrophe losses decreased $138 million to $4.61 billion in the first nine months of 2026 compared to the first nine months of 2025. Results in 2025 included $1.11 billion of losses related to California wildfire events.
Previous wording
(2)Gross losses before reinsurance recoverables and reinstatement premiums were $5.22 billion.
Current wording
(2)Gross losses before reinsurance recoverables and reinstatement premiums were $6.01 billion.
Previous 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
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 September 30, 2026, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils was approximately $3.3 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.
Previous wording
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.
Current wording
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. Additional information regarding our 2026 catastrophe reinsurance program is included in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 in the Allstate Protection Segment section of MD&A.
Previous 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
months of 2026 was $350 million and $1.04 billion, respectively, compared to $352 million and $914 million in the third quarter and first nine months of 2025. Catastrophe placement premiums reduce net written and earned premium with approximately 83% of the reduction related to homeowners premium.
Previous wording
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.
Current wording
Prior year reserve reestimates, including catastrophes, decreased reserves by $969 million in the third quarter of 2026 and $2.61 billion in the first nine months of 2026.
Previous 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.
Current wording
Auto reserve releases for the third quarter of 2026 included $802 million related to auto injury coverages and $74 million related to other auto reserves. Approximately 28% of auto injury coverage reserve releases related to accident year 2025 and approximately 55% to 2023 and 2024.
Previous wording
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 wording
Auto reserve releases during the first nine months of 2026 included $2.07 billion related to auto injury coverages and $279 million related to other auto reserves. Approximately 29% of auto injury coverage reserve releases related to accident year 2025 and approximately 52% to 2023 and 2024.
Previous wording
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 wording
For the third quarter and first nine months of 2026, reserve releases in homeowners were primarily driven by favorable severity assumptions, offset by catastrophe reserve increases. Reserve releases in commercial lines were primarily driven by improved commercial auto injury severity.
Previous wording
Second Quarter 2026 Form 10-Q 53 up to $934 million of property loss less a $30 million retention.
Previous wording
(1)In the second quarter and first six months of 2026, 86% and 87% of payments related to settlement agreements, respectively, compared to 93% and 91% in the second quarter and first six months of 2025, respectively.
Current wording
(1)In the third quarter and first nine months of 2026, 65% and 81% of payments related to settlement agreements, respectively, compared to 81% and 90% in the third quarter and first nine months of 2025, respectively.
Previous wording
(2)In the second quarter and first six months of 2026, 94% of payments related to settlement agreements compared to 94% and 93% in the second quarter and first six months of 2025, respectively.
Current wording
(2)In the third quarter and first nine months of 2026, 66% and 88% of payments related to settlement agreements, respectively, compared to 84% and 91% in the third quarter and first nine months of 2025, respectively.
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Current report — wording carried from elsewhere
50 www.allstate.com nine months of 2026 compared to the first nine months of 2025, primarily due to lower premiums from lender-placed agent business.
Current report — wording carried from elsewhere
The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the third quarter and first nine
Current report — wording carried from elsewhere
During the third quarter and first nine months of 2026, favorable auto severity, excluding catastrophes, reflected improved prior period loss development and better than expected claim outcomes.
Current report — wording carried from elsewhere
Run-off Property-Liability Segment Results
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months of 2026 compared to the same periods of 2025, primarily due to expenses related to growth at Protection Plans.
Current report — wording carried from elsewhere
Third Quarter 2026 Form 10-Q 67 of any party. AIC serves as a lender and borrower, certain other subsidiaries serve only as borrowers, and the Corporation serves only as a lender. The maximum amount of potential funding under each of these agreements is $1.00 billion.
Current report — wording carried from elsewhere
million of borrowing, subject to the lenders’ commitment. This facility has a financial covenant requiring that we not exceed a 37.5% debt to capitalization ratio as defined in the agreement. This ratio was 13.7% as of September 30, 2026. Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of our senior unsecured, unguaranteed long-term debt. There were no borrowings under the credit facility during 2026.
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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.
Previous report — wording carried elsewhere
66 www.allstate.com eligible subsidiaries at any given point in time is limited to $1.00 billion. The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings.
Previous report — wording carried elsewhere
Second Quarter 2026 Form 10-Q 67