Company Restructuring

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]


Note 13			Company Restructuring

The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include the following costs related to these programs:

•Employee - severance and relocation benefits

•Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $16 million and $10 million during the three months ended March 31, 2025 and 2024, respectively. Restructuring expenses during the first quarter of 2025 primarily related to streamlining the organization and outsourcing certain aspects of operations. These charges are recorded in the Allstate Protection segment. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future.


Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2024	$	25	$	2	$	27
Expense incurred	14		2		16

Payments and non-cash charges	(13)		(2)		(15)
Restructuring liability as of March 31, 2025	$	26	$	2	$	28

As of March 31, 2025, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $58 million for employee costs and $1 million for exit costs.

The organizational transformation phase of the Transformative Growth plan which commenced in the second quarter of 2024 is substantially complete as of March 31, 2025.


2024 Organizational transformation
($ in millions)
Expected program charges	$	24
Change in estimated program initiatives and costs	25
2024 expenses	(45)
2025 expenses	(4)
Remaining program charges	$	—