AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 31/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Brand recognition and multiple distribution channels establish commercially useful resources. Policy growth supports their relevance, but the passages do not demonstrate superior acquisition costs, protected distribution, customer lock-in or premium pricing. A structural economic advantage remains weakly established.
durability · 1/4 · The established brand and renewed property-liability growth support continuing relevance. Earlier auto renewal declines show that recognition does not secure demand through repricing. The evidence does not demonstrate a sustained comparative advantage across underwriting cycles.
customer dependency · 1/4 · Historical renewal declines and lower recommendation scores following substantial price increases indicate fragile demonstrated customer dependence. Recent policy growth provides a positive demand signal, but does not establish switching friction or customers’ inability to replace Allstate coverage.
erosion resilience · 2/4 · The return to policy growth and recovery from the 2023 consolidated loss demonstrate adaptation after stress. Higher underwriting income strengthens that evidence. Premium reductions and equity valuation contributions limit attribution to a protected competitive position rather than improved execution and conditions.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Homeowners premium rate increases contributed to first-quarter 2026 revenue growth, separately from policy volume. Conversely, Allstate reports helping 7.8 million auto and homeowners customers reduce premiums by an average of 17%. Different scopes establish mixed pricing outcomes without isolating a company-wide price effect.
retention · 2/4 · The 2025 return to property-liability growth and higher 2026 auto and homeowners policies provide indirect evidence of repeat demand. Earlier renewal declines and weaker recommendation scores temper that evidence. Net policy growth includes new business, so no current retention rate is inferred.
margin resilience · 2/4 · Higher underwriting income contributed to first-half 2026 earnings improvement, following a substantial annual recovery. However, the 2023 loss demonstrates cyclicality, and equity valuation gains also supported recent earnings. These outcomes establish mixed resilience without isolating pricing’s contribution to underwriting margins.
contractual freedom · 1/4 · Insurance regulation explicitly affects rate setting, policy forms and underwriting standards, materially constraining discretion. Actual homeowners repricing demonstrates some latitude within those limits. The regulatory framework is a current constraint; it does not prove that every requested rate increase was refused.
Predictability85
Financial-sector stability over 5 consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.29
- positiveEarningsShare
- 60.00
- netMarginStdDev
- 6.27
- observedAnnualPeriods
- 5.00
Financial strength63
Qualitative insurance assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital adequacy · 3/4 · At December 31, 2025, Allstate Insurance Company reported $20,748,644,464 total adjusted capital against $4,233,012,942 Authorized Control Level RBC, approximately 490.2% on that denominator. The reviewed February 24, 2026 issuance meets freshness requirements. This supports strong subsidiary capital, without establishing consolidated group sufficiency or exceptional durability.
liquidity funding · 3/4 · The parent held $9.45 billion of deployable assets at June 30, 2026, generally saleable within one quarter. The Corporation and AIC also had access to a $750 million revolving facility. These demonstrate funding flexibility, subject to asset-sale assumptions and restrictions on subsidiary distributions.
asset liability risk · 2/4 · June 2026 disclosures show substantial fixed-income backing alongside equity, limited-partnership and reinsurance exposures, with $40.979 billion of property-casualty claims reserves. This establishes a mixed risk profile. Missing duration matching, reserve-development detail and current recoverability outcomes limit confidence in comprehensive risk containment.
earnings resilience · 2/4 · Consolidated net income recovered from a $213 million loss in 2023 to $10.266 billion in 2025, with further first-half 2026 improvement. Higher underwriting income supports operating recovery, while equity valuation gains also contributed. The record demonstrates recovery and cyclicality rather than consistently strong through-cycle earnings.
Capital allocation56
Qualitative insurance assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital efficiency · 2/4 · The issuer reports 42% ROE for 2025, supported directionally by substantial reported earnings and subsequent equity growth. However, the headline passage does not fully define the ROE denominator, and the 2023 loss limits durability. Recent capital productivity does not establish sustained comparative efficiency.
distributions and buffers · 2/4 · First-half 2026 recorded share acquisitions and declared dividends were below earnings, while equity and parent deployable assets supported capacity. AIC’s defined statutory capital comparison adds buffer evidence. Nevertheless, that subsidiary snapshot does not establish post-distribution group solvency, and upstream dividends remain regulated.
dilution and cost · 3/4 · Common shares outstanding declined from 260 million at December 2025 to 254 million at June 2026 despite equity-plan activity, demonstrating net dilution control. Debt remained approximately unchanged. Repurchases consumed capital, and the passages do not establish their valuation attractiveness or fully disclose compensation expense.
investment discipline · 2/4 · Performance-based investment income improved, but valuation increases drove the gain and the top ten investments contributed approximately 88% of second-quarter performance-based income. Additional limited-partnership commitments totaled $3.07 billion. These establish mixed outcomes and concentration, without demonstrating broad risk-adjusted outperformance or exceptional reinvestment discipline.
Management75
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 3/4 · First-half 2026 recorded share acquisitions and declared dividends were below reported earnings, while shareholders’ equity increased. Substantial parent deployable assets support funding flexibility. These actual outcomes demonstrate discipline, although repurchase valuation and consolidated regulatory capital adequacy remain unestablished.
incentive alignment · 3/4 · Annual executive equity grants and the disclosed ROE metric for PSAs granted in 2025 connect compensation to shareholder outcomes. The hedging prohibition preserves exposure. These are actual compensation mechanisms, but do not establish exceptional effectiveness or imply that outstanding performance awards have vested.
execution · 3/4 · ASC rollout into 43 auto and 31 homeowners states, renewed property-liability policy growth and higher underwriting income demonstrate execution through disclosed achievements and operating outcomes. Attribution is partly indirect because equity valuation gains also increased earnings; management’s strategic praise is not treated as separate proof.
governance · 3/4 · Independent lead-director selection and annual board evaluations establish accountability structures. Completed one-year director elections and the approved advisory compensation vote demonstrate functioning shareholder mechanisms. These support strong disclosed practices, while their effectiveness in specific strategic or risk decisions remains unverified.
Evidence
The Allstate brand is widely known through the “You’re In Good Hands With Allstate®” slogan.
2025 Form 10-K, Business: brand recognition; filed February 20, 2026 · Filed 20/02/2026
Best
Reportable segments
Allstate Protection (1)
Offers private passenger auto, homeowners, other personal lines and commercial insurance through exclusive agents, independent agents, contact centers and online under the Allstate, National General, Direct Auto and Answer Financial brands
Run-off Property-
Liability (1)
Relates to property and casualty insurance policies written from the 1960s through
2025 Form 10-K, reportable segments: Allstate Protection distribution; filed February 20, 2026 · Filed 20/02/2026
Policies in force grew by 3% in 2025, including a return to growth in property-liability policies.
2026 proxy statement: 2025 policies-in-force growth; filed April 10, 2026 · Filed 10/04/2026
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.
Second-quarter 2026 Form 10-Q, Financial Highlights: policy growth and revenue drivers; filed August 5, 2026 · Filed 05/08/2026
Property-Liability policies in force decreased by 2.0% compared to the prior year, as continued growth at National General was more than offset by the Allstate brand and renewals declined in the auto insurance business.
2023 Form 10-K, operating priorities: property-liability policy contraction and auto renewals; filed February 21, 2024 · Filed 21/02/2024
Execute Transformative Growth
Improve Customer Value
Enterprise Net Promoter Score, which measures how likely customers are to recommend Allstate, finished below the prior year, reflecting the impact of substantial price increases necessary to offset higher loss costs.
2024 Form 10-K, operating priorities: recommendation scores following price increases; filed February 24, 2025 · Filed 24/02/2025
Customer satisfaction increased by improving interactions, including helping 7.8 million auto and homeowners insurance customers reduce their premiums by an average of 17%.
2026 proxy statement: premium reductions for 7.8 million auto and homeowners customers; filed April 10, 2026 · Filed 10/04/2026
These rules have a substantial effect on our business and relate to a wide variety of matters, including insurer solvency and statutory surplus sufficiency, reserve adequacy, insurance company licensing and examination, agent and adjuster licensing, agent and broker compensation, policy forms, rate setting, the nature and amount of investments, claims practices, participation in shared markets and guaranty funds, transactions with affiliates, the payment of dividends, underwriting standards, statutory accounting methods, trade practices, privacy regulation and data security, corporate governance and risk management.
2025 Form 10-K, insurance regulation: rate setting, policy forms and underwriting constraints; filed February 20, 2026 · Filed 20/02/2026
Total revenue increased 3.0% to $16.94 billion in the first quarter of 2026 compared to the first quarter of 2025, primarily due to higher auto and homeowners insurance policies in force and to a lesser extent homeowners premium rate increases.
First-quarter 2026 Form 10-Q, Financial Highlights: policy volume and homeowners rate contributions; filed April 29, 2026 · Filed 29/04/2026
44 www.allstate.com
Financial Highlights
($ in millions)
Q1
Q2
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 $5.67 billion in the first six months of 2026 compared to the same periods of 2025, primarily due to higher underwriting income and valuation gains on equity investments.
Second-quarter 2026 Form 10-Q, Financial Highlights: underwriting and equity valuation contributions to earnings; filed August 5, 2026 · Filed 05/08/2026
Years Ended December 31,
($ in millions)
2025
2024
2023
Net income (loss)
$
10,266
$
4,599
$
(213)
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses
1,068
(167)
1,651
Unrealized foreign currency translation adjustments
90
(47)
67
Unamortized pension and other postretirement prior service credit
—
(2)
(16)
Discount rate for reserve for future policy benefits
(14)
27
(10)
Other comprehensive income (loss), after-tax
1,144
(189)
1,692
Comprehensive income
11,410
4,410
1,479
Less: Comprehensive loss attributable to noncontrolling interest
(13)
(58)
(15)
Comprehensive income attributable to Allstate
$
11,423
$
4,468
$
1,494
2025 Form 10-K, consolidated comprehensive income: 2023–2025 net income in millions of dollars; filed February 20, 2026 · Filed 20/02/2026
($ in millions, except per share data)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Preferred stock par value
$
—
$
—
$
—
$
—
Preferred stock additional capital paid-in
2,001
2,001
2,001
2,001
Common stock par value
9
9
9
9
Common stock additional capital paid-in
Balance, beginning of period
4,169
4,048
4,158
4,029
Equity incentive plans activity, net
50
36
61
55
Balance, end of period
4,219
4,084
4,219
4,084
Retained income
Balance, beginning of period
64,540
53,586
62,393
53,288
Net income
3,271
2,109
5,728
2,704
Dividends on common stock (declared per share of $1.08, $1.00, $2.16, and $2.00)
(277)
(265)
(558)
(533)
Dividends on preferred stock
(30)
(30)
(59)
(59)
Balance, end of period
67,504
55,400
67,504
55,400
Treasury stock
Balance, beginning of period
(38,820)
(37,080)
(38,206)
(36,996)
Shares acquired
(1,054)
(344)
(1,680)
(449)
Shares reissued under equity incentive plans, net
32
6
44
27
Balance, end of period
(39,842)
(37,418)
(39,842)
(37,418)
Accumulated other comprehensive income (loss)
Balance, beginning of period
(292)
(509)
255
(889)
Change in unrealized net capital gains and losses
142
387
(376)
807
Change in unrealized foreign currency translation adjustments
(43)
84
(71)
39
Change in unamortized pension and other postretirement prior service credit
—
—
(1)
—
Change in discount rate for reserve for future policy benefits
—
(19)
—
(14)
Balance, end of period
(193)
(57)
(193)
(57)
Total Allstate shareholders’ equity
33,698
24,019
33,698
24,019
Noncontrolling interest
Balance, beginning of period
(20)
(3)
(21)
(75)
Change in unrealized net capital gains and losses
—
(1)
—
3
Noncontrolling income (loss)
—
(10)
1
(9)
Capital transactions for noncontrolling interest
—
—
—
67
Balance, end of period
(20)
(14)
(20)
(14)
Total equity
$
33,678
$
24,005
$
33,678
$
24,005
Second-quarter 2026 Form 10-Q, shareholders’ equity: earnings, declared dividends and shares acquired, in millions of dollars except per-share data; filed August 5, 2026 · Filed 05/08/2026
($ in millions, except par value data)
June 30,
2026
December 31, 2025
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $60,902 and $58,730)
$
60,809
$
59,115
Equity securities, at fair value (cost $10,071 and $8,026)
11,159
8,398
Mortgage loans, net
842
879
Limited partnership interests
8,967
8,844
Short-term, at fair value (amortized cost $4,874 and $4,888)
4,872
4,887
Other investments, net
1,153
1,114
Total investments
87,802
83,237
Cash
840
678
Premium installment receivables, net
11,864
11,474
Deferred policy acquisition costs
6,139
6,163
Reinsurance and indemnification recoverables, net
7,880
8,501
Accrued investment income
730
708
Property and equipment, net
591
627
Goodwill
3,118
3,118
Other assets, net
5,792
5,252
Total assets
124,756
119,758
Liabilities
Reserve for property and casualty insurance claims and claims expense
40,979
41,079
Unearned premiums
29,388
29,080
Claim payments outstanding
1,552
1,419
Deferred income taxes
172
227
Other liabilities and accrued expenses
11,495
9,874
Debt
7,492
7,490
Total liabilities
91,078
89,169
Commitments and Contingent Liabilities (Note 11)
Equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 82.0 thousand shares issued and outstanding, $2,050 aggregate liquidation preference
2,001
2,001
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 254 million and 260 million shares outstanding
9
9
Additional capital paid-in
4,219
4,158
Retained income
67,504
62,393
Treasury stock, at cost (646 million and 640 million shares)
(39,842)
(38,206)
Accumulated other comprehensive income (loss):
Second-quarter 2026 Form 10-Q, consolidated financial position: investments, claims reserves, recoverables, debt and outstanding shares; filed August 5, 2026 · Filed 05/08/2026
Parent company capital capacity At the parent holding company level, we have deployable assets totaling $9.45 billion as of June 30, 2026, primarily comprised of cash and short-term, fixed income and equity securities that are generally saleable within one quarter.
Second-quarter 2026 Form 10-Q, parent company capital capacity at June 30, 2026; filed August 5, 2026 · Filed 05/08/2026
•The Corporation and AIC have access to a $750 million unsecured revolving credit facility that is available for short-term liquidity requirements.
Second-quarter 2026 Form 10-Q, liquidity: Corporation and AIC revolving credit facility; filed August 5, 2026 · Filed 05/08/2026
Based on the greater of 2025 statutory net income or 10% of actual December 31, 2025 statutory surplus, the maximum amount of dividends that AIC will be able to pay, without prior Illinois Department of Insurance approval, at a given point in time through February 2027, is $7.98 billion, less dividends paid during the preceding twelve months measured at that point in time.
Second-quarter 2026 Form 10-Q, AIC upstream dividend limits through February 2027; filed August 5, 2026 · Filed 05/08/2026
•The Company advanced its Transformative Growth strategy, including the rollout of Allstate ASC (Affordable, Simple and Connected) auto and homeowners insurance products in 43 and 31 states, respectively.
2026 proxy statement: completed ASC product rollout by state; filed April 10, 2026 · Filed 10/04/2026
Allstate grants equity awards annually to executives consistent with our philosophy that a significant amount of compensation should be in the form of equity to align with the interests of our long-term shareholders.
2026 proxy statement, executive compensation: annual equity grants; filed April 10, 2026 · Filed 10/04/2026
•Stock options only have value if the company’s stock price increases
2025 CEO Equity Mix
2025 Other NEOs Equity Mix
The Allstate Corporation | AllstateInvestors.com
57
Introduction
Corporate
Governance
Executive
Compensation
Audit
Matters
Shareholder Proposal
Stock
Ownership
Other
Information
Links and
Resources
Performance Stock Award Metrics and Purpose
PSAs granted
in 2025
Why Metric Was Chosen
Average Performance Net Income ROE
•Correlates to changes in long-term shareholder value.
2026 proxy statement, performance stock awards: 2025 grants and Average Performance Net Income ROE metric; filed April 10, 2026 · Filed 10/04/2026
We have a policy that prohibits all officers, directors and employees from engaging in transactions in securities issued by Allstate or any of its subsidiaries that might be considered speculative and engaging in derivative or other transactions designed to hedge or offset any decrease in market value of the securities held by them, such as selling short or buying or selling options, puts or calls and entering into prepaid variable forward contracts, equity swaps or collars.
2026 proxy statement, compensation governance: prohibition on hedging; filed April 10, 2026 · Filed 10/04/2026
Independent Lead Director
The Lead Director is elected annually by the independent directors and is generally expected to serve for 3-5 years
Board Tenure
Well-rounded mix of longer-tenured directors with institutional knowledge and newer directors with fresh perspectives
Board Effectiveness
Outside Experts
and Advisors
Outside experts and advisors cover key topics, including competitive landscape, artificial intelligence, cybersecurity, investor perspectives and corporate governance, succession planning and human capital management
Director Education
Education includes orientation and onboarding, engagement with management and external education
Board Evaluation
Evaluation includes annual Board and committee assessments, annual planning and individual director performance discussions
Other Governance Best Practices
•No supermajority vote requirements
2026 proxy statement, governance: independent lead director and annual board evaluations; filed April 10, 2026 · Filed 10/04/2026
Eleven directors were elected by a majority of the votes cast for one year terms expiring at the 2027 annual stockholders meeting.
Annual meeting results: completed one-year director elections; filed May 27, 2026 · Filed 27/05/2026
The proposal on the advisory resolution to approve the compensation of the named executives received the vote of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the proposal.
Annual meeting results: approved advisory executive compensation resolution; filed May 27, 2026 · Filed 27/05/2026
Strong execution of the multi-year Transformative Growth plan delivered net income of $10.2 billion and a 42% return on equity in 2025.
2026 proxy statement, shareholder letter: issuer-reported 2025 return on equity; filed April 10, 2026 · Filed 10/04/2026
We have commitments to invest additional amounts in limited partnership interests totaling $3.07 billion as of June 30, 2026.
Second-quarter 2026 Form 10-Q, Investments: limited-partnership commitments at June 30, 2026; filed August 5, 2026 · Filed 05/08/2026
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.
Second-quarter 2026 Form 10-Q, Investments: valuation-driven performance-based income increases; filed August 5, 2026 · Filed 05/08/2026
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.
Second-quarter 2026 Form 10-Q, Investments: concentration of performance-based income; filed August 5, 2026 · Filed 05/08/2026
22. Events Subsequent
An evaluation of subsequent events was made through February 20, 2026 for the Annual Statement issued on February 24, 2026.
Allstate Insurance Company 2025 statutory annual statement, PDF page 56: explicit February 24, 2026 issuance under issued-capital-1; PDF creation date remains February 25, 2026 · Created 25/02/2026
ANNUAL STATEMENT FOR THE YEAR 2025 OF THE ALLSTATE INSURANCE COMPANY
FIVE-YEAR HISTORICAL DATA
Show amounts in whole dollars only, no cents; show percentages to one decimal place, i.e.
Allstate Insurance Company 2025 statutory annual statement, PDF page 81: named entity, five-year historical table and whole-dollar unit instruction · Created 25/02/2026
17.6.
1
2025
2
2024
3
2023
4
2022
5
2021
Gross Premiums Written (Page 8, Part 1B Cols.
Allstate Insurance Company statutory statement, PDF page 81: historical table column order, with 2025 in column 1 · Created 25/02/2026
Total adjusted capital ................................................
Allstate Insurance Company statutory statement, PDF page 81: total adjusted capital row definition; context for e32 · Created 25/02/2026
.......... 20,748,644,464 ..........
Allstate Insurance Company statutory statement, PDF page 81: 2025 total adjusted capital of $20,748,644,464, whole USD; closing date December 31, 2025 · Created 25/02/2026
29. Authorized control level risk-based capital ............................
Allstate Insurance Company statutory statement, PDF page 81: Authorized Control Level risk-based capital denominator; context for e34 · Created 25/02/2026
4,233,012,942 ............ 3,835,240,278 ............
Allstate Insurance Company statutory statement, PDF page 81: 2025 Authorized Control Level RBC of $4,233,012,942 followed by the 2024 amount, whole USD; closing date December 31, 2025 · Created 25/02/2026
