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
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Run-off Property-Liability
Run-off Property-Liability Segment Results
Run-off Property-Liability Segment
| Underwriting results | ||||
|---|---|---|---|---|
| ($ in millions) | Three months ended September 30, | Nine months ended September 30, | ||
| 2026 | 2025 | 2026 | 2025 | |
| Claims and claims expense | ||||
| Asbestos claims | $(81) | $(62) | $(81) | $(62) |
| Environmental claims | (57) | (27) | (57) | (27) |
| Other run-off lines | (78) | (57) | (78) | (62) |
| Claims and claims expense | $(216) | $(146) | $(216) | $(151) |
| Operating costs and expenses | (2) | — | (3) | (2) |
| Underwriting loss | $(218) | $(146) | $(219) | $(153) |
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 $146 million in 2026 and 2025, respectively. The reserve reestimates are included as part of claims and claims expense.
The reserve reestimates in 2026 were primarily driven by higher claim frequency and severity for asbestos claims and emerging claims activity and expected settlement values on environmental and other mass tort claims.
The reserve reestimates in 2025 were primarily related to new reported information for asbestos
claims, new reported claims for environmental and other mass tort claims and increased projections for claims expenses.
We believe that our reserves are appropriately established based on available facts, technology, laws, regulations and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment. However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable.
| Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | September 30, 2026 | December 31, 2025 |
| Asbestos claims | ||
| Gross reserves | $1,141 | $1,098 |
| Reinsurance | (342) | (329) |
| Net reserves | 799 | 769 |
| Environmental claims | ||
| Gross reserves | 356 | 302 |
| Reinsurance | (58) | (55) |
| Net reserves | 298 | 247 |
| Other run-off claims | ||
| Gross reserves | 536 | 452 |
| Reinsurance | (56) | (36) |
| Net reserves | 480 | 416 |
| Total | ||
| Gross reserves | 2,033 | 1,852 |
| Reinsurance | (456) | (420) |
| Net reserves | $1,577 | $1,432 |
Third Quarter 2026 Form 10-Q 55
Segment Results Run-off Property-Liability
| Reserves by type of exposure before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | September 30, 2026 | December 31, 2025 |
| Direct excess commercial insurance | ||
| Gross reserves | $1,227 | $1,063 |
| Reinsurance | (378) | (341) |
| Net reserves | 849 | 722 |
| Assumed reinsurance coverage | ||
| Gross reserves | 609 | 584 |
| Reinsurance | (59) | (54) |
| Net reserves | 550 | 530 |
| Direct primary commercial insurance | ||
| Gross reserves | 92 | 98 |
| Reinsurance | (19) | (24) |
| Net reserves | 73 | 74 |
| Unallocated loss adjustment expenses | ||
| Gross reserves | 105 | 107 |
| Reinsurance | — | (1) |
| Net reserves | 105 | 106 |
| Total | ||
| Gross reserves | 2,033 | 1,852 |
| Reinsurance | (456) | (420) |
| Net reserves | $1,577 | $1,432 |
| Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”) | ||||
|---|---|---|---|---|
| September 30, 2026 | December 31, 2025 | |||
| Case | IBNR | Case | IBNR | |
| Direct excess commercial insurance | ||||
| Gross reserves (1) | 56% | 44% | 57% | 43% |
| Ceded (2) | 70 | 30 | 66 | 34 |
| Assumed reinsurance coverage | ||||
| Gross reserves | 31 | 69 | 32 | 68 |
| Ceded | 37 | 63 | 44 | 56 |
| Direct primary commercial insurance | ||||
| Gross reserves | 38 | 62 | 38 | 62 |
| Ceded | 78 | 22 | 72 | 28 |
(1)Approximately 57% and 66% of gross case reserves as of September 30, 2026 and December 31, 2025, respectively, are subject to settlement agreements that define and limit our obligations.
(2)Approximately 62% and 73% of ceded case reserves as of September 30, 2026 and December 31, 2025, respectively, are subject to settlement agreements that define and limit our obligations.
| Gross payments from case reserves by type of exposure | ||||
|---|---|---|---|---|
| ($ in millions) | Three months ended September 30, | Nine months ended September 30, | ||
| 2026 | 2025 | 2026 | 2025 | |
| Direct excess commercial insurance | ||||
| Gross (1) | $16 | $14 | $62 | $74 |
| Ceded (2) | (5) | (6) | (23) | (27) |
| Assumed reinsurance coverage | ||||
| Gross | 10 | 21 | 22 | 37 |
| Ceded | (1) | (5) | (1) | (6) |
| Direct primary commercial insurance | ||||
| Gross | 1 | 2 | 6 | 4 |
| Ceded | — | (1) | (2) | (2) |
(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.
(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.
56 www.allstate.com
Run-off Property-Liability Segment Results
Total net reserves as of September 30, 2026, included $855 million or 54% of estimated IBNR reserves compared to $761 million or 53% of estimated IBNR reserves as of December 31, 2025.
Total gross payments were $27 million and $90 million for the third quarter and first nine months of 2026, respectively, compared to $37 million and $115 million for the third quarter and first nine months of 2025, respectively. Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos-related losses, where the scope of coverages has been agreed upon. The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds.
Third Quarter 2026 Form 10-Q 57
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.