The Allstate Corporation
Fourth Quarter 2025 Earnings Presentation02.05.2026
Allstate Delivers More Affordable Protection And Strong Results
Allstate's Strategy To Create Shareholder Value
Increase Personal
Property-Liability Market Share
Leveraging Allstate brand,
customer base and capabilities
Expand Protection
Services
Improved auto and homeowners insurance affordability
Benefited from Transformative Growth initiatives
Generated strong financial results
Increased growth of Property-Liability policies in force
Higher cash returns to shareholders
2025 performance highlights
The Allstate Corporation 2026 PAGE 2
Generated Strong Financial Results
($ in millions except per share data)
2025 results | Fourth quarter | Full year |
Total revenues | $17,345 | $67,685 |
Net income applicable to common shareholders | $3,803 | $10,165 |
- Per diluted common share | $14.37 | $38.06 |
Adjusted net income* | $3,788 | $9,304 |
- Per diluted common share | $14.31 | $34.83 |
2025 versus 2024 net income | Fourth quarter |
Net income applicable to common shareholders - 2024 | $1,899 |
Significant reconciling items(1) | |
- Underwriting income, excluding catastrophe losses and reserve reestimates* | $767 |
- Catastrophe losses | $159 |
- Reserve reestimates (non-catastrophe)(2) | $792 |
Other reconciling items(3) | $186 |
Net income applicable to common shareholders - 2025 | $3,803 |
(1) Utilizes 21% tax rate
(2) Reflects the change in prior year reserve reestimates (non-catastrophe) and development of auto insurance claims reported through the first three quarters of the year
(3) Reflects the change in adjusted net income from all other reportable segments, and the after-tax changes of gain on dispositions, net investment income, net gains (losses) on investments and derivatives, and other reconciling items
The Allstate Corporation 2026 PAGE 3
Regulatory/Legislative Changes To Improve Affordability Must Focus On Costs
Industry combined ratio averaged ~100
Allstate combined ratio averaged 95.7
Expenses
23%
Physical Damage (2)
43%
(Car replacement and repair)
Injury (2)
34%
2020 - 2025
Auto insurance industry costs(1) - % of total
Cost factors and trends
Physical damage
Physical damage costs have increased ~47%(2) over 5 years
Used car prices increased 43% from 2020 to 2022 following the pandemic(3)
Decline of 13% since 2022 will lower severity and improve affordability
Injury costs
Injury costs have increased ~52%(2) over 5 years
Tort reform has reduced costs in Florida with top 5 carriers reducing prices by 5.9%(4)
New York average bodily injury cost is approximately two times that of Florida and the national average
Uninsured and underinsured motorist claims costs have
increased by 72%(2)
Profitability
Industry underwriting profitability is close to zero for last five years
(1) Industry information represents U.S. statutory results per S&P Global Market Intelligence. 2025 results are estimates based on statutory data available through the third quarter and internal assumptions
(2) Industry coverage loss distributions are based on Allstate loss distributions. Physical damage includes property damage, collision and comprehensive coverages. Injury includes all other coverages
(3) Source: Manheim Used Vehicle Value Index
(4) Source: Florida Office of Insurance Regulation
The Allstate Corporation 2026 PAGE 4
Allstate Improved Auto And Homeowners Insurance Affordability While Maintaining Returns
Actions to improve affordability
Customer value
Customer renewal processes used to optimize coverage and discounts
Rolled out Allstate-branded Affordable, Simple, Connected (ASC) insurance products
Expanded direct purchase options
Operational excellence
Reduced adjusted expense ratio*(1)
Enhanced claims processes
(1) Includes Property-Liability adjusted underwriting and claims expense ratios which incorporates unallocated claims expenses; ratio excludes amortization and impairment of purchased intangibles, restructuring, Coronavirus-related and advertising expenses and allocated claims expenses and catastrophes
The Allstate Corporation 2026 PAGE 5
Benefited From Transformative Growth Initiative
Competitive Prices
Reduced adjusted expense ratio* by 6.6 points since 2018
Improved auto and homeowners insurance pricing models
Expand Distribution
Acquired National General with independent agent distribution
Increased direct sales utilizing Allstate brand at 7-8% lower prices
Improved Allstate agent productivity
New Products
Expanded non-standard auto insurance offerings
Introduced Allstate ASC auto and homeowners insurance products to 43 and 31 states, respectively
Launched standard auto and homeowners insurance products for independent agents in 36 states
Sophisticated Marketing
Increased marketing investments to $2.1 billion in 2025;
$0.9 billion in 2019
Significantly expanded distribution and grew policies in force
Personal lines new business Personal lines policies in force
2019 2025 2019 2025
Broadest distribution in industry
Larger and more balanced customer base
5.5 million
2x higher
11.6 million
33.5 million 38.1 million
Exclusive agent Independent agent Direct
The Allstate Corporation 2026 PAGE 6
2026 Transformative Growth Focus Is To Roll-out New Platforms
Phase 1: Conceptual design
Phase 2:
Enhance existing business
Phase 3: Build new business
Phase 4: Roll out new platforms
Phase 5:
Decommission existing processes and technologies
Improve customer value
Expand distribution
Increase sophistication of customer acquisition
Deploy technology ecosystem
Improve customer
experiences
Complete ASC and Custom360® product rollouts
Additional cost reductions
Further enhance Allstate
agent customer value
Continue expansion of direct sales
Broaden independent agent sales with Custom360® products
Optimize lead acquisition
Leverage artificial intelligence
Extend ASC product
concepts to specialty lines
Transition customers from classic (pre-ASC) to ASC products
Initiate retirement of legacy systems
Launch Agentic AI purchase, service and claims customer experiences
The Allstate Corporation 2026 PAGE 7
Protection Services Generating Profitable Growth
2025 results
Policies in force:
172M39.7%
8.1%
Growth - prior year
Q4 2025 quarterly performance
Distribution partners
Protection Plans
Adjusted Net Income 49 (+32.4% to prior year)
(+3.3% to prior year)
Premiums earned/other revenue:
$3.3B(+11.7% to prior year)
Adjusted net income:
$218M(+0.5% to prior year)
Electronics
Computers/tablets
TVs
Mobile phones
Major appliances
Furniture
Consumer protection
($ in millions) | Domestic | International |
Revenue | 439 | 170 |
The Allstate Corporation 2026 PAGE 8
Property-Liability Generates Strong Results
($ in millions)
$900
$810
$800
$700
$600
$545
$500
$400
$296
$300
$200
$88
$100
$0
Q1
Q2
Q3
Q4
2025
Premium impacts from rate decreases and SAVE actions
Improving affordability had manageable impact on auto insurance earned premium
Cumulative earned premium impact
Full year 2025 results | ||
(% change from prior year) | Auto insurance | Homeowners insurance |
Premiums earned | 4.4% 15.0% 2.3% 2.5% Auto Homeowners insurance insurance 95.0 90.1 | |
Policies in force | ||
(% of premiums earned) | ||
Combined ratio - 2024 | ||
Underlying loss ratio* | (4.6) pts | (4.2) pts |
Underlying expense ratio* | (0.7) pts | (0.4) pts |
Catastrophe losses | (0.8) pts | (1.2) pts |
Prior year reserve reestimates (non-catastrophe) | (3.9) pts | 0.1 pts |
Combined ratio - 2025 | 85.0 | 84.4 |
Underwriting income ($ in millions) | $5,724 | $2,393 |
The Allstate Corporation 2026 PAGE 9
Auto Claims Process Improvements Support Favorable Reserve Adjustments
Optimize inspection methodology
Adjuster training to enhance quality and consistency
Large language models and AI-driven photo analysis
improve total loss predictions and valuation accuracy
Improved accuracy and customer experience
Physical damage
Redesigned claims operating model to accelerate payment to injured parties
Utilizing new tools and quality assurance processes
Predictive models identify potential injured parties earlier to control liability
Enhanced processes and analytics
Injury
The Allstate Corporation 2026 PAGE 10
Auto Insurance Growth Accelerated And Broadened In 2025
Allstate Protection auto - distribution of policy in force growth(1)
% of countrywide premiums written
2024 variance to 2023 2025 variance to 2024
% of countrywide premiums written
45%
40%
35%
30%
Countrywide decrease of 1.4%
45%
40%
35%
30%
Countrywide
increase of 2.3%
25% 25%
20% 20%
15% 15%
10% 10%
5% 5%
0%
More than
-10%
-10% to
-4%
-4% to 0% 0% to 4% 4% to 10% Greater
than 10%
0%
More than
-10%
-10% to
-4%
-4% to 0% 0% to 4% 4% to 10% Greater
than 10%
State count
Policy in force % variance to prior year Policy in force % variance to prior year
5 | 8 | 7 | 13 | 15 | 3 |
3 | 3 | 7 | 18 | 14 | 6 |
State count
Not growing Growing
(1) Distribution of year-over-year policy in force growth by state and written premium totals
The Allstate Corporation 2026 PAGE 11
Homeowners Insurance Continues To Generate Attractive Returns And Grow
Property-Liability financial highlights | |||||
2021 | 2022 | 2023 | 2024 | 2025 | |
Premiums earned ($ in millions) | $9,552 | $10,418 | $11,739 | $13,360 | $15,363 |
Policies in force % to prior year | 7.8% | 1.4% | 1.1% | 2.4% | 2.5% |
Combined ratio
Allstate recorded 10-year combined ratio average of 92.0 while the industry recorded an underwriting loss(1)
Underlying* | 68.7 | 70.3 | 67.3 | 62.5 | 57.9 |
Recorded | 96.7 | 93.6 | 106.8 | 90.1 | 84.4 |
Industry combined ratio | 104.7 | 106.0 | 112.7 | 101.6 | 104.1 (1) |
(1) Industry information represents U.S. statutory results per S&P Global Market Intelligence. 2025 results are estimates based on statutory data available through the third quarter and internal assumptions
The Allstate Corporation 2026 PAGE 12
Increased Investment Income Reflecting Portfolio Growth And Increased Fixed Income Yields
2024 | 2025 | ||
Portfolio Carrying Value ($ in billions) Market-based | 62.1 | 73.4 | |
Performance-based | 10.5 | 9.8 | |
Total | 72.6 | 83.2 | |
Net Investment Income ($ in millions) | |||
Market-based(1) | 2,728 | 3,036 | |
Performance-based(1) | 618 | 648 | |
Total | 3,092 | 3,449 | |
Total Return (%)(2) Market-based | 3.7% | 6.1% | |
Performance-based | 6.3% | 5.8% | |
Total | 3.8% | 5.8% | |
Twelve months ended
December 31,
Investment Portfolio financial highlights
(1) Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses
(2) Total portfolio and market-based returns reflect asset-weighted GAAP total returns, performance-based results reflect IRR. See investor supplement for definitions
The Allstate Corporation 2026 PAGE 13
Proactive Capital Management Increases Cash Returns To Shareholders
› Returned over $2.2 billion to shareholders in 2025 through a combination of common shareholder dividends and share repurchases
› Approved quarterly common dividend of $1.08 per share - payable in cash on Apr. 1, 2026 to stockholders of record at the close of business on Mar. 2, 2026
› Authorized a $4 billion share repurchase program effective upon completion of outstanding $1.5 billion program in early 2026
› Repurchased 18% and 39% of common shares outstanding over the last 5 years and 10 years, respectively
The Allstate Corporation 2026 PAGE 14
Forward-looking Statements
This presentation contains "forward-looking statements" that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like "plans," "seeks," "expects," "will," "should," "anticipates," "estimates," "intends," "believes," "likely," "targets" and other words with similar meanings. These statements may address, among other things, our strategy for growth, catastrophe exposure management, product development, investment results, regulatory approvals, market position, expenses, financial results, litigation and reserves. We believe that these statements are based on reasonable
estimates, assumptions and plans. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements resulting from new information or future events or developments. In addition, forward-looking statements are subject to certain risks or uncertainties that could cause actual results to differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include risks related to:
Insurance and Financial Services (1) actual claim costs exceeding current reserves; (2) unexpected increases in claim frequency or severity; (3) catastrophes and severe weather events; (4) limitations in analytical models used for loss cost estimates; (5) price competition and changes in regulation and underwriting standards; (6) regulatory limitations on rate increases and requirements to underwrite business and participate in loss sharing arrangements; (7) market risk and declines in credit quality of our investment portfolios; (8) economic and capital market conditions affecting investments; (9) subjective determination of fair value and amount of credit losses for investments; (10) participation in indemnification programs, including state industry pools and facilities; (11) inability to mitigate the impact associated with changes in capital requirements; (12) a downgrade in financial strength ratings;
Business, Strategy and Operations (13) operations in markets that are
highly competitive; (14) changing consumer preferences; (15) new or changing technologies impacting the business; (16) inability to successfully deploy new technologies; (17) Transformative Growth strategy; (18) catastrophe management strategy; (19) restrictions on our subsidiaries' ability to pay dividends; (20) restrictions under terms of some of our
securities on the ability to pay dividends or repurchase stock; (21) the availability and cost of reinsurance; (22) counterparty risk related to reinsurance; (23) acquisitions and divestitures of businesses; (24)
intellectual property infringement, misappropriation and third-party claims;
(25) reliance on vendors for products, services or protection of data and information; (26) inability to attract, develop and retain talent;
Macro, Regulatory and Risk Environment (27) conditions in the global economy and capital markets, including changes in U.S. trade and tariff policy, new or additional U.S. and responsive non-U.S. tariffs, and our ability to plan for and respond to the impact of those changes; (28)
restrictions on liquidity or availability of credit on acceptable terms; (29) a large-scale pandemic, the occurrence of terrorism, military actions or political and social unrest or other disruptive or destabilizing events; (30) the failure in cyber or other information security controls; (31) failure of business continuity following a disaster or other event; (32) changing climate and weather conditions; (33) evolving environmental, social and governance standards and expectations; (34) evolving privacy and data security regulations and increased focus on enforcement; (35) failure to manage risk and to timely detect and mitigate a cybersecurity event; (36) restrictive regulations and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally; (37) regulatory reforms and enforcement of existing regulations; (38) losses from legal and regulatory actions; (39) changes in or the application of accounting standards and changes in tax laws; and (40) misconduct or fraudulent acts by employees, agents and third parties.
Additional information concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the "Risk Factors" section in our most recent annual report on Form 10-K.
The Allstate Corporation 2026 PAGE 16
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The Allstate Corporation published this content on February 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 05, 2026 at 04:28 UTC.
