Reportable Segments

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Reportable Segments

Note 5 Reportable Segments

The Company’s Chief Executive Officer is the CODM. The CODM reviews financial performance and makes decisions about the allocation of resources for the five reportable segments. The CODM considers each segment profit measure when making decisions regarding the allocation of resources to the segments.

Allstate Protection and Run-off Property-Liability segments comprise Property-Liability. The Company does not allocate investment income, net gains and losses on investments and derivatives or assets to the Allstate Protection and Run-off Property-Liability segments. Management reviews assets at the Property-Liability, Protection Services, Allstate Health and Benefits, and Corporate and Other levels for decision-making purposes. These segments are described below and align with the Company’s key product and service offerings.

The accounting policies of the reportable segments are the same as those described in Note 2. The effects of inter-segment transactions are eliminated in the consolidated results. 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.

Allstate Protection principally offers private passenger auto, homeowners and other property insurance in the United States and Canada, with earned premiums accounting for 84.0% of Allstate’s 2024 consolidated revenues. Allstate Protection primarily operates in the U.S. (all 50 states and the District of Columbia (“D.C.”)) and Canada. For 2024, the top geographic locations for statutory direct premiums for the Allstate Protection segment were Texas, California, Florida and New York. No other jurisdiction accounted for more than 5% of statutory direct premiums for Allstate Protection. Revenues from

external customers generated outside the United States were $2.14 billion, $2.06 billion and $1.94 billion in 2024, 2023 and 2022, respectively.

Run-off Property-Liability includes results from property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other run-off lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off.

Protection Services comprises Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection. Protection Services offers consumer product protection plans, automotive protection and insurance products (including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel and paintless dent repair protection), roadside assistance, mobility data collection services and analytic solutions using automotive telematics information and identity theft protection and remediation services. Protection Services primarily operates in the U.S. and Canada, with Allstate Protection Plans also offering services in Europe, Asia and Australia. Revenues from external customers generated outside the United States were $472 million, $346 million and $258 million in 2024, 2023 and 2022, respectively, and relate to consumer product protection plans sold primarily in Europe, Japan and Australia.

Allstate Health and Benefits offers employer voluntary benefits, group health and individual health products, including life, accident, critical illness, hospital indemnity, short-term disability and other health products. Allstate Health and Benefits primarily operates in the U.S. (all 50 states and D.C.) and Canada. For 2024, the top geographic locations for statutory

direct accident, health and life insurance premiums were Texas, Florida, Georgia and Ohio. No other jurisdiction accounted for more than 5% of statutory direct accident, health and life insurance premiums. Revenues from external customers generated outside the United States relate to voluntary accident and health insurance sold in Canada and were not material.

On August 13, 2024, the Company entered into a Purchase Agreement with StanCorp Financial Group, Inc. to sell the Company’s employer voluntary benefits business. See Note 4 for additional information on the transaction.

On January 30, 2025, the Company entered into an agreement with Nationwide Life Insurance Company to sell the Company’s group health business. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions.

Corporate and Other comprises net investment income, net gains (losses) on investments, other revenue, debt service, other holding company activities and certain non-insurance operations.

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, Allstate Health and Benefits and Corporate and Other segments.

Underwriting income (loss) is calculated as premiums earned and other revenue, less claims and claims expenses, amortization of 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:

• Net gains and losses on investments and derivatives

• Pension and other postretirement remeasurement gains and losses

• Amortization or impairment of purchased intangibles

• Gain or loss on disposition

• Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years

• Income tax expense or benefit on reconciling items

A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below.

Reportable segments financial performance
	For the years ended December 31,
($ in millions)	2024		2023		2022
Underwriting income (loss) by segment
Allstate Protection	$	3,153	$	(2,090)	$	(2,782)
Run-off Property-Liability	(73)		(94)		(129)
Total Property-Liability	3,080		(2,184)		(2,911)
Adjusted net income (loss) by segment, after-tax
Protection Services	217		106		169
Allstate Health and Benefits	186		242		245
Corporate and Other	(426)		(415)		(422)
Reconciling items
Allstate Protection and Run-off Property-Liability net investment income	2,810		2,218		2,190
Net gains (losses) on investments and derivatives	(225)		(300)		(1,072)
Pension and other postretirement remeasurement gains (losses)	37		(9)		(116)
Amortization of purchased intangibles (1)	(74)		(94)		(113)
Gain (loss) on disposition (2)	16		4		89
Non-recurring costs (3)	—		(90)		—
Income tax (expense) benefit on Property-Liability and reconciling items (4)	(1,138)		182		495
Total reconciling items	1,426		1,911		1,473
Less: Net loss attributable to noncontrolling interest (5)	(67)		(24)		(52)
Net income (loss) applicable to common shareholders	$	4,550	$	(316)	$	(1,394)

(1)Excludes amortization of purchased intangibles in Allstate Protection, which is already included above in underwriting income.

(2)Includes $83 million related to the gain on sale of headquarters in the fourth quarter of 2022 reported as other revenue in the Corporate and Other segment.

(3)Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business.

(4)The tax computation of the reporting segments and income tax benefit (expense) on reconciling items to net income (loss) are computed discretely based on the tax law of the jurisdictions applicable to the reporting entities.

(5)Reflects net loss attributable to noncontrolling interest in Property-Liability.

The following table includes all revenues recorded in the Consolidated Statements of Operations.

Reportable segments revenue information
	For the years ended December 31,
($ in millions)	2024		2023		2022
Property-Liability
Insurance premiums
Auto	$	36,475	$	32,940	$	29,715
Homeowners	13,360		11,739		10,418
Other personal lines	2,823		2,387		2,159
Commercial lines	609		811		1,123
Other business lines	599		550		494
Allstate Protection	53,866		48,427		43,909
Run-off Property-Liability	—		—		—
Total Property-Liability insurance premiums	53,866		48,427		43,909
Other revenue	1,895		1,545		1,416
Net investment income	2,810		2,218		2,190
Net gains (losses) on investments and derivatives	(228)		(292)		(877)
Total Property-Liability	58,343		51,898		46,638
Protection Services
Protection Plans	1,869		1,540		1,307
Roadside assistance	150		195		202
Protection and insurance products	503		508		486
Intersegment premiums and service fees (1)	180		138		149
Other revenue	441		319		347
Net investment income	94		73		48
Net gains (losses) on investments and derivatives	(14)		—		(52)
Total Protection Services	3,223		2,773		2,487
Allstate Health and Benefits
Employer voluntary benefits	985		1,001		1,033
Group health	481		440		385
Individual health	455		405		414
Other revenue	522		447		402
Net investment income	100		82		69
Net gains (losses) on investments and derivatives	(5)		3		(44)
Total Allstate Health and Benefits	2,538		2,378		2,259
Corporate and Other
Other revenue	72		89		179
Net investment income	88		105		96
Net gains (losses) on investments and derivatives	22		(11)		(99)
Total Corporate and Other	182		183		176
Intersegment eliminations (1)	(180)		(138)		(149)
Consolidated revenues	$	64,106	$	57,094	$	51,411

(1)Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the consolidated financial statements.

Reportable segments expense information used in measure for segment profit or loss
	For the years ended December 31,
($ in millions)	2024		2023		2022
Property-Liability
Claims and claims expense excluding catastrophe losses and prior year reserve reestimates (1)	$	34,092	$	34,243	$	31,894
Catastrophe losses	4,964		5,636		3,112
Non-catastrophe prior year reserve reestimates	(6)		485		1,601
Amortization of DAC	6,676		6,070		5,570
Advertising expense	1,863		638		934
Amortization of purchased intangibles	206		235		240
Restructuring and related charges	51		142		44
Other segment expenses (2)	4,762		4,613		4,712
Allstate Protection	52,608		52,062		48,107
Claims and claims expense (1)	68		89		125
Other segment expenses (2)	5		5		4
Run-off Property Liability	73		94		129
Total Property-Liability	52,681		52,156		48,236
Protection Services
Claims and claims expense	641		632		532
Amortization of DAC	1,217		1,058		928
Restructuring and related charges	2		6		2
Other segment expenses (2)	1,090		889		874
Income taxes on operations	71		83		35
Total	3,021		2,668		2,371
Allstate Health and Benefits
Accident, health and other policy benefits	1,241		1,071		1,042
Amortization of DAC	146		150		136
Restructuring and related charges	3		7		2
Other segment expenses (2)	915		842		814
Income taxes on operations	52		63		64
Total	2,357		2,133		2,058
Corporate and Other
Interest expense	400		379		335
Restructuring and related charges	5		13		3
Other segment expenses (2)	163		185		262
Income taxes on operations	(99)		(99)		(92)
Preferred stock dividends	117		128		105
Total	$	586	$	606	$	613

(1)Includes incurred loss adjustment expenses, net of reinsurance of $2.90 billion, $2.80 billion and $2.65 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

(2)Includes employee-related costs, professional services, technology and certain other operating costs and expenses, including expenses from strategic initiatives.

Additional significant financial performance data
	For the years ended December 31,
($ in millions)	2024		2023		2022
Amortization of DAC
Property-Liability	$	6,676	$	6,070	$	5,570
Protection Services	1,217		1,058		928
Allstate Health and Benefits	146		150		136
Consolidated	$	8,039	$	7,278	$	6,634
Amortization of purchased intangibles
Property-Liability	$	206	$	235	$	240
Protection Services	47		62		77
Allstate Health and Benefits	27		32		36
Consolidated	$	280	$	329	$	353
Income tax expense (benefit)
Property-Liability	$	1,144	$	(136)	$	(427)
Protection Services	56		66		5
Allstate Health and Benefits	45		57		45
Corporate and Other	(83)		(122)		(111)
Consolidated	$	1,162	$	(135)	$	(488)

Capital expenditures for long-lived assets are generally made at the Property-Liability level as the Company does not allocate assets to the Allstate Protection and Run-off Property-Liability segments. A portion of these long-lived assets are used by entities included in the Protection Services, Allstate Health and Benefits and Corporate and Other segments and, accordingly, are charged to these segments in proportion to their use.

Reportable segment total assets, investments and deferred policy acquisition costs
	As of December 31,
($ in millions)	2024		2023
Assets
Property-Liability	$	96,988	$	88,568
Protection Services	7,540		7,292
Allstate Health and Benefits	4,362		4,032
Corporate and Other	2,727		3,470
Consolidated	$	111,617	$	103,362
Investments (1)
Property-Liability	$	67,671	$	59,540
Protection Services	2,228		2,180
Allstate Health and Benefits (2)	379		2,182
Corporate and Other	2,332		2,775
Consolidated	$	72,610	$	66,677
Deferred policy acquisition costs
Property-Liability	$	2,548	$	2,378
Protection Services	3,161		3,022
Allstate Health and Benefits (2)	64		540
Consolidated	$	5,773	$	5,940

(1)The balances reflect the elimination of related party investments between segments.

(2)As of December 31, 2024, $1.91 billion of investments and $521 million of deferred policy acquisition costs are classified as held for sale and not included in the table above.