Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Volume and Fair Value Positions of Derivative Instruments


Summary of the volume and fair value positions of derivative instruments as of September 30, 2025
($ in millions, except number of contracts)		Volume (1)
	Balance sheet location	Notional amount		Number of contracts	Fair value, net		Gross asset		Gross liability
Asset derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts

Interest rate cap agreements	Other investments	$	37	n/a	$	—	$	—	$	—

Futures	Other assets	n/a		5,311	—		—		—
Equity and index contracts
Options	Other investments	n/a		65	—		—		—
Futures	Other assets	n/a		1,016	1		1		—






Contingent consideration	Other assets	250		n/a	140		140		—
Credit default contracts

Credit default swaps - selling protection	Other investments	500		n/a	12		12		—





Total asset derivatives		$	787	6,392	$	153	$	153	$	—

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities and accrued expenses	$	37	n/a	$	(1)	$	—	$	(1)



Futures	Other liabilities and accrued expenses	n/a		3,503	—		—		—
Equity and index contracts
Options	Other liabilities and accrued expenses	n/a		65	—		—		—
Futures	Other liabilities and accrued expenses	n/a		38	—		—		—



Foreign currency contracts
Foreign currency forwards	Other liabilities and accrued expenses	537		n/a	(29)		2		(31)










Total liability derivatives		574		3,606	(30)		$	2	$	(32)
Total derivatives		$	1,361	9,998	$	123

(1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)


Summary of the volume and fair value positions of derivative instruments as of December 31, 2024
($ in millions, except number of contracts)		Volume (1)
	Balance sheet location	Notional amount		Number of contracts	Fair value, net		Gross asset		Gross liability
Asset derivatives



Derivatives not designated as accounting hedging instruments
Interest rate contracts

Futures	Other assets	n/a		4,596	$	—	$	—	$	—
Equity and index contracts

Futures	Other assets	n/a		437	—		—		—



Foreign currency contracts
Foreign currency forwards	Other investments	$	602	n/a	20		21		(1)

Contingent consideration	Other assets	250		n/a	134		134		—






Total asset derivatives		$	852	5,033	$	154	$	155	$	(1)

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts


Futures	Other liabilities and accrued expenses	n/a		12,112	$	(1)	$	—	$	(1)
Equity and index contracts

Futures	Other liabilities and accrued expenses	n/a		662	—		—		—











Total liability derivatives		—		12,774	(1)		$	—	$	(1)
Total derivatives		$	852	17,807	$	153

Schedule of Gross and Net Amounts for OTC Derivatives


Gross and net amounts for OTC derivatives (1)
($ in millions)			Offsets
	Gross amount		Counter-party netting		Cash collateral (received) pledged		Net amount on balance sheet		Securities collateral (received) pledged		Net amount
September 30, 2025
Asset derivatives	$	2	$	(2)	$	—	$	—	$	—	$	—
Liability derivatives	(32)		2		28		(2)		—		(2)

December 31, 2024
Asset derivatives	$	21	$	(1)	$	(18)	$	2	$	—	$	2
Liability derivatives	(1)		1		—		—		—		—

(1)All OTC derivatives are subject to enforceable MNAs.

Schedule of Gains (Losses) from Valuation and Settlements Reported on Derivatives


Gains (losses) from valuation and settlements reported on derivatives
($ in millions)	Net gains (losses) on investments and derivatives		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Three months ended September 30, 2025
Interest rate contracts	$	2	$	—	$	2
Equity and index contracts	(2)		15		13
Contingent consideration	—		3		3

Foreign currency contracts	6		—		6




Total	$	6	$	18	$	24

Nine months ended September 30, 2025
Interest rate contracts	$	(8)	$	—	$	(8)
Equity and index contracts	(10)		21		11
Contingent consideration	—		6		6

Foreign currency contracts	(50)		—		(50)
Credit default contracts	(10)		—		(10)



Total	$	(78)	$	27	$	(51)

Three months ended September 30, 2024
Interest rate contracts	$	42	$	—	$	42
Equity and index contracts	(2)		10		8
Contingent consideration	—		2		2

Foreign currency contracts	(23)		—		(23)
Credit default contracts	3		—		3



Total	$	20	$	12	$	32

Nine months ended September 30, 2024
Interest rate contracts	$	21	$	—	$	21
Equity and index contracts	(17)		24		7
Contingent consideration	—		5		5

Foreign currency contracts	(9)		—		(9)
Credit default contracts	2		—		2



Total	$	(3)	$	29	$	26

Schedule of OTC Cash and Securities Collateral Pledged


OTC cash and securities collateral pledged
($ in millions)	September 30, 2025
Pledged by the Company	$	28
Pledged to the Company (1)	—

(1) $28 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision.

Schedule of OTC Derivatives Counterparty Credit Exposure by Counterparty Credit Rating


OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	September 30, 2025							December 31, 2024
Rating (1)	Number of counter-parties	Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)		Number of counter-parties	Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)
AA-	1	$	37	$	—	$	—	1	$	213	$	10	$	1
A+	—	—		—		—		3	389		10		1




Total	1	$	37	$	—	$	—	4	$	602	$	20	$	2

(1)Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.

(2)Only OTC derivatives with a net positive fair value are included for each counterparty.

Schedule of Exchange Traded and Cleared Margin Deposits


Exchange traded and cleared margin deposits
($ in millions)	September 30, 2025
Pledged by the Company	$	88
Received by the Company	1

Schedule of Fair Value of Instruments with Credit-Risk-Contingent Features

The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.


($ in millions)	September 30, 2025		December 31, 2024
Gross liability fair value of contracts containing credit-risk-contingent features	$	31	$	1
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(2)		(1)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(28)		—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	1	$	—

Schedule of Derivative CDS Notional Amount by Credit Rating and Fair Value of Protection Sold


CDS notional amounts by credit rating and fair value of protection sold
($ in millions)	Notional amount
	AAA		AA		A		BBB		BB and lower		Total		Fair value
September 30, 2025




Index
Corporate debt	$	—	$	—	$	—	$	500	$	—	$	500	$	12
Total	$	—	$	—	$	—	$	500	$	—	$	500	$	12

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details