Reportable Segments

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Reportable Segments

Note 4 Reportable Segments

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.

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.

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses, 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:

• 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
	Three months ended March 31,
($ in millions)	2025		2024
Underwriting income (loss) by segment
Allstate Protection	$	364	$	903
Run-off Property-Liability	(4)		(5)
Total Property-Liability	360		898
Adjusted net income (loss) by segment, after-tax
Protection Services	55		54
Allstate Health and Benefits	30		56
Corporate and Other	(97)		(106)
Reconciling items
Allstate Protection and Run-off Property-Liability net investment income	783		702
Net gains (losses) on investments and derivatives	(349)		(164)
Pension and other postretirement remeasurement gains (losses)	(78)		2
Amortization of purchased intangibles (1)	(13)		(18)
Gain (loss) on disposition	—		4
Income tax (expense) benefit on Property-Liability and reconciling items (2)	(124)		(259)
Total reconciling items	219		267
Less: Net income (loss) attributable to noncontrolling interest (3)	1		(20)
Net income applicable to common shareholders	$	566	$	1,189

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

(2)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.

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

Reportable segments revenue information
($ in millions)	Three months ended March 31,
	2025		2024
Property-Liability
Insurance premiums
Auto	$	9,347	$	8,778
Homeowners	3,657		3,154
Other personal lines	741		659
Commercial lines	113		169
Other business lines	169		140
Allstate Protection	14,027		12,900
Run-off Property-Liability	—		—
Total Property-Liability insurance premiums	14,027		12,900
Other revenue	488		430
Net investment income	783		702
Net gains (losses) on investments and derivatives	(329)		(162)
Total Property-Liability	14,969		13,870
Protection Services
Protection plans	510		439
Roadside assistance	36		47
Protection and insurance products	125		126
Intersegment premiums and service fees (1)	37		35
Other revenue	128		85
Net investment income	24		21
Net gains (losses) on investments and derivatives	(10)		(5)
Total Protection Services	850		748
Allstate Health and Benefits
Employer voluntary benefits	243		248
Group health	124		118
Individual health	120		112
Other revenue	131		134
Net investment income	25		23
Net gains (losses) on investments and derivatives	(1)		2
Total Allstate Health and Benefits	642		637
Corporate and Other
Other revenue	15		20
Net investment income	22		18
Net gains (losses) on investments and derivatives	(9)		1
Total Corporate and Other	28		39
Intersegment eliminations (1)	(37)		(35)
Consolidated revenues	$	16,452	$	15,259

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

Reportable segments expense information used in measure for segment profit or loss
	Three months ended March 31,
($ in millions)	2025		2024
Property-Liability
Claims and claims expense excluding catastrophe losses and prior year reserve reestimates (1)	$	8,693	$	8,607
Catastrophe losses	2,202		731
Non-catastrophe prior year reserve reestimates	(238)		7
Amortization of DAC	1,732		1,608
Advertising expense	523		283
Amortization of purchased intangibles	46		51
Restructuring and related charges	16		7
Other segment expenses (2)	1,177		1,133
Allstate Protection	14,151		12,427
Claims and claims expense (1)	3		4
Other segment expenses (2)	1		1
Run-off Property Liability	4		5
Total Property-Liability	14,155		12,432
Protection Services
Claims and claims expense	161		158
Amortization of DAC	318		289
Restructuring and related charges	—		1
Other segment expenses (2)	309		234
Income taxes on operations	17		17
Total	805		699
Allstate Health and Benefits
Accident, health and other policy benefits	333		296
Amortization of DAC	37		42
Restructuring and related charges	—		1
Other segment expenses (2)	234		225
Income taxes on operations	9		15
Total	613		579
Corporate and Other
Interest expense	100		97
Restructuring and related charges	—		1
Other segment expenses (2)	32		42
Income taxes on operations	(27)		(25)
Preferred stock dividends	29		29
Total	$	134	$	144

(1)Includes Property-Liability incurred loss adjustment expenses, net of reinsurance of $734 million and $696 million for the three months ended 2025 and 2024, 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
	Three months ended March 31,
($ in millions)	2025		2024
Amortization of DAC
Property-Liability	$	1,732	$	1,608
Protection Services	318		289
Allstate Health and Benefits	37		42
Consolidated	$	2,087	$	1,939
Amortization of purchased intangibles
Property-Liability	$	46	$	51
Protection Services	9		11
Allstate Health and Benefits	4		7
Consolidated	$	59	$	69
Income tax expense (benefit)
Property-Liability	$	148	$	263
Protection Services	13		13
Allstate Health and Benefits	8		14
Corporate and Other	(46)		(24)
Consolidated	$	123	$	266

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
($ in millions)	March 31, 2025		December 31, 2024
Assets
Property-Liability	$	100,875	$	96,988
Protection Services	7,593		7,540
Allstate Health and Benefits	4,319		4,362
Corporate and Other	2,374		2,727
Consolidated	$	115,161	$	111,617
Investments (1)
Property-Liability	$	69,573	$	67,671
Protection Services	2,334		2,228
Allstate Health and Benefits (2)	187		379
Corporate and Other	1,956		2,332
Consolidated	$	74,050	$	72,610
Deferred policy acquisition costs
Property-Liability	$	2,565	$	2,548
Protection Services	3,152		3,161
Allstate Health and Benefits (2)	70		64
Consolidated	$	5,787	$	5,773

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

(2)As of March 31, 2025 and December 31, 2024, $2.07 billion and $1.91 billion of investments, respectively, and $526 million and $521 million, respectively, of deferred policy acquisition costs are classified as held for sale and not included in the table above.