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. 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.

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.

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 a new technology ecosystem

•Driving organizational transformation

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

Acquisitions

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.

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Financial Highlights

($ in millions)

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.

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.

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.

Investments totaled $87.38 billion as of September 30, 2026, increasing from $83.24 billion as of December 31, 2025.

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.

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.

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.

Third Quarter 2026 Form 10-Q 45