Derivative Financial Instruments and Off-balance Sheet Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Financial Instruments and Off-balance sheet Financial Instruments

Schedule of Volume and Fair Value Positions of Derivative Instruments


Summary of the volume and fair value positions of derivative instruments as of December 31, 2025
		Volume (1)
($ in millions, except number of contracts)	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		3,386	—		—		—
Equity and index contracts
Options	Other investments	n/a		12	—		—		—
Futures	Other assets	n/a		32	—		—		—



Foreign currency contracts
Foreign currency forwards	Other investments	$	503	n/a	(14)		2		(16)

Contingent consideration	Other assets	250		n/a	147		147		—
Credit default contracts

Credit default swaps – selling protection	Other investments	550		n/a	9		9		—


Total asset derivatives		$	1,340	3,430	$	142	$	158	$	(16)

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


Futures	Other liabilities & accrued expenses	n/a		1,323	—		—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	n/a		12	—		—		—
Futures	Other liabilities & accrued expenses	n/a		1,063	(2)		—		(2)



Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	$	45	n/a	(3)		—		(3)





Total liability derivatives		82		2,398	(6)		$	—	$	(6)
Total derivatives		$	1,422	5,828	$	136

(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
		Volume (1)
($ in millions, except number of contracts)	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 & accrued expenses	n/a		12,112	$	(1)	$	—	$	(1)
Equity and index contracts

Futures	Other liabilities & 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
December 31, 2025
Asset derivatives	$	2	$	(16)	$	15	$	1	$	—	$	1
Liability derivatives	(20)		16		3		(1)		—		(1)

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 Not Designated as Accounting Hedges


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
2025
Interest rate contracts	$	(10)	$	—	$	(10)
Equity and index contracts	(10)		25		15
Contingent consideration	—		13		13
Foreign currency contracts	(48)		—		(48)
Credit default contracts	(8)		—		(8)



Total	$	(76)	$	38	$	(38)

2024
Interest rate contracts	$	(32)	$	—	$	(32)
Equity and index contracts	(17)		22		5
Contingent consideration	—		16		16
Foreign currency contracts	32		—		32
Credit default contracts	3		—		3


Total	$	(14)	$	38	$	24

2023
Interest rate contracts	$	(8)	$	—	$	(8)
Equity and index contracts	(32)		28		(4)

Contingent consideration	—		15		15
Foreign currency contracts	(14)		—		(14)
Credit default contracts	(30)		—		(30)

Other contracts	—		(1)		(1)
Total	$	(84)	$	42	$	(42)

Schedule of OTC Cash and Securities Collateral Pledged


OTC cash and securities collateral pledged
($ in millions)	December 31, 2025
Pledged by the Company	$	18
Pledged to the Company (1)	—

(1)$14 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)	December 31, 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)	December 31, 2025
Pledged by the Company	$	95
Received by the Company	—

Schedule of Fair Value of Derivative Instruments with Termination, Cross-Default or Collateral Credit-Risk-Contingent

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)	December 31, 2025		December 31, 2024
Gross liability fair value of contracts containing credit-risk-contingent features	$	16	$	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	(14)		—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—	$	—

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
December 31, 2025




Index
Corporate debt	$	—	$	—	$	—	$	550	$	—	$	550	$	9
Total	$	—	$	—	$	—	$	550	$	—	$	550	$	9

Schedule of Contractual Amounts of Off-Balance Sheet Financial Instruments


Contractual amounts of off-balance sheet financial instruments
	As of December 31,
($ in millions)	2025		2024
Commitments to invest in limited partnership interests	$	3,244	$	3,345
Private placement commitments	74		29
Other loan commitments	14		16