{
  "ticker": "ALL",
  "company": "Allstate Corporation",
  "filing_type": "10-K",
  "year_current": "2025",
  "year_prior": "2024",
  "summary": {
    "added": 33,
    "removed": 21,
    "modified": 56,
    "unchanged": 9,
    "total_current": 98,
    "total_prior": 86
  },
  "source": "SEC EDGAR",
  "url": "https://riskdiff.com/all/2025-vs-2024/",
  "markdown_url": "https://riskdiff.com/all/2025-vs-2024/index.md",
  "json_url": "https://riskdiff.com/all/2025-vs-2024/index.json",
  "generated": "2026-06-01",
  "ai_summary": null,
  "risks": [
    {
      "status": "ADDED",
      "current_title": "Dispositions",
      "prior_title": null,
      "current_body": "On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc. to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits business for approximately $2.0 billion in cash. The employer voluntary benefits business is reported in the Allstate Health and Benefits segment, and beginning in the third quarter of 2024, the assets and liabilities of the business were classified as held for sale. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business for approximately $1.25 billion in cash, adjusted for the closing balance sheet. The group health business is reported in the Allstate Health and Benefits segment, and beginning in the first quarter of 2025, the assets The Allstate Corporation 35 The Allstate Corporation 35 The Allstate Corporation 35 2024 Form 10-K 2024 Form 10-K and liabilities of the business will be classified as held for sale. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions. The individual health business will either be retained or divested.The transaction prices less costs to sell exceeds the carrying value of the net assets of both transactions, resulting in an expected gain that will be recognized at closing of each transaction. The ultimate amount of the anticipated gain on the sales will be impacted by purchase price adjustments associated with certain pre-close transactions, changes in the carrying value of net assets, changes in accumulated other comprehensive income and the related tax effects. See Note 4 of the consolidated financial statements for further information on the employer voluntary benefits disposition.2024 Operating priorities and resultsAllstate continued to focus on its operating priorities while successfully executing a comprehensive plan to improve auto insurance profitability and making substantial progress in advancing Transformative Growth. The table below summarizes the results of our 2024 Operating Priorities. and liabilities of the business will be classified as held for sale. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions. The individual health business will either be retained or divested.The transaction prices less costs to sell exceeds the carrying value of the net assets of both transactions, resulting in an expected gain that will be recognized at closing of each transaction. The ultimate amount of the anticipated gain on the sales will be impacted by purchase price adjustments associated with certain pre-close transactions, changes in the carrying value of net assets, changes in accumulated other comprehensive income and the related tax effects. and liabilities of the business will be classified as held for sale. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions. The individual health business will either be retained or divested. The transaction prices less costs to sell exceeds the carrying value of the net assets of both transactions, resulting in an expected gain that will be recognized at closing of each transaction. The ultimate amount of the anticipated gain on the sales will be impacted by purchase price adjustments associated with certain pre-close transactions, changes in the carrying value of net assets, changes in accumulated other comprehensive income and the related tax effects. See Note 4 of the consolidated financial statements for further information on the employer voluntary benefits disposition.2024 Operating priorities and resultsAllstate continued to focus on its operating priorities while successfully executing a comprehensive plan to improve auto insurance profitability and making substantial progress in advancing Transformative Growth. The table below summarizes the results of our 2024 Operating Priorities. See Note 4 of the consolidated financial statements for further information on the employer voluntary benefits disposition."
    },
    {
      "status": "ADDED",
      "current_title": "Achieve 2024 Plan Growth Objectives",
      "prior_title": null,
      "current_body": "Consolidated policies in force reached 208 million, a 7.2% increase from prior year. Allstate Protection policies in force decreased by 0.6% compared to the prior year, as continued growth in the homeowners insurance business was more than offset by declines in the auto insurance business. Protection Services policies in force and revenue increased 9.3% and 16.7%, respectively, primarily due to growth at Allstate Protection Plans through expanding distribution relationships and protection offerings."
    },
    {
      "status": "ADDED",
      "current_title": "Achieve 2024 Plan Returns",
      "prior_title": null,
      "current_body": "Return on average Allstate common shareholders’ equity was 25.8% in 2024. Total return on the $72.61 billion investment portfolio was 3.8% in 2024. Proactive portfolio management repositioned the fixed income portfolio into longer duration and higher-yielding assets to increase income. The Property-Liability combined ratio of 94.3 for the full year decreased compared to the prior year primarily reflecting successful execution of the Company’s comprehensive auto insurance profitability plan and lower catastrophe losses."
    },
    {
      "status": "ADDED",
      "current_title": "Expand Customer Access",
      "prior_title": null,
      "current_body": "Increased auto insurance new issued applications in all channels. National General continues to build a strong competitive position in independent agent distribution with successful expansion on non-standard auto sales and roll-out of our auto and home Custom360 product now available in 30 states."
    },
    {
      "status": "ADDED",
      "current_title": "Increase Sophistication and Investment in Customer Acquisition",
      "prior_title": null,
      "current_body": "Increased advertising and reduced underwriting restrictions as higher average premium outpaced increased loss costs per policy. Continued roll-out of Affordable, Simple and Connected auto insurance offering now available in 31 states for auto, 28 states for renters and Affordable, Simple and Connected homeowners insurance offering now available in 4 states. Continued to build a digital enterprise by expanding utilization of machine-based learning and artificial intelligence. Streamlined the organization by reducing bureaucracy, risk aversion and organizational silos. (1)2025 operating priorities will remain mostly consistent with the 2024 priorities. 36 www.allstate.com 36 www.allstate.com 36 www.allstate.com 2024 Form 10-K 2024 Form 10-K"
    },
    {
      "status": "ADDED",
      "current_title": "Total revenue",
      "prior_title": null,
      "current_body": "Total revenue increased 12.3% to $64.11 billion in 2024 compared to 2023, primarily due to premium rate increases and higher net investment income. Total revenue increased 12.3% to $64.11 billion in 2024 compared to 2023, primarily due to premium rate increases and higher net investment income. Total revenue increased 12.3% to $64.11 billion in 2024 compared to 2023, primarily due to premium rate increases and higher net investment income. Total revenue increased 12.3% to $64.11 billion in 2024 compared to 2023, primarily due to premium rate increases and higher net investment income. Net investment income($ in millions)"
    },
    {
      "status": "ADDED",
      "current_title": "Net investment income",
      "prior_title": null,
      "current_body": "Net investment income increased $614 million to $3.09 billion in 2024 compared to 2023, primarily due to higher market-based investment results. Market-based results continue to benefit from portfolio repositioning into higher yielding fixed income securities and higher investment balances. Net investment income increased $614 million to $3.09 billion in 2024 compared to 2023, primarily due to higher market-based investment results. Market-based results continue to benefit from portfolio repositioning into higher yielding fixed income securities and higher investment balances. Net investment income increased $614 million to $3.09 billion in 2024 compared to 2023, primarily due to higher market-based investment results. Market-based results continue to benefit from portfolio repositioning into higher yielding fixed income securities and higher investment balances. Net investment income increased $614 million to $3.09 billion in 2024 compared to 2023, primarily due to higher market-based investment results. Market-based results continue to benefit from portfolio repositioning into higher yielding fixed income securities and higher investment balances. Financial highlightsInvestments totaled $72.61 billion as of December 31, 2024, increasing from $66.68 billion as of December 31, 2023.Allstate shareholders’ equity was $21.44 billion as of December 31, 2024 and $17.77 billion as of December 31, 2023. The increase is primarily due to net income, partially offset by dividends to shareholders.Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $72.35 as of December 31, 2024, an increase of 21.8% from $59.39 as of December 31, 2023.Return on average Allstate common shareholders’ equity For the twelve months ended December 31, 2024, return on Allstate common shareholders’ equity was 25.8%, an increase of 27.8 points from (2.0)% for the twelve months ended December 31, 2023, primarily due to net income applicable to common shareholders. Financial highlightsInvestments totaled $72.61 billion as of December 31, 2024, increasing from $66.68 billion as of December 31, 2023.Allstate shareholders’ equity was $21.44 billion as of December 31, 2024 and $17.77 billion as of December 31, 2023. The increase is primarily due to net income, partially offset by dividends to shareholders."
    },
    {
      "status": "ADDED",
      "current_title": "Income taxes",
      "prior_title": null,
      "current_body": "The effective tax rate is the ratio of income tax expense (benefit) divided by income (loss) from operations before income tax expense. For the year ended December 31, 2024, we reported an effective tax rate of 20.2% based on total income tax expense of $1.16 billion on total income from operations before income tax expense of $5.76 billion. The effective rate in 2024 is lower than the federal statutory rate of 21%, primarily due to tax benefits derived from tax credits, tax-exempt interest income, and share-based payments, offset by state income tax expense. For the year ended December 31, 2023, we reported an effective tax rate of 38.8% based on a total income tax benefit of $135 million on the loss from operations before income tax benefit of $348 million. The effective tax rate in 2023 was higher than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, tax-exempt interest income and shared-based payments, offset by a change in valuation allowance and uncertain tax positions. For additional information, see Note 17 of the consolidated financial statements. 38 www.allstate.com 38 www.allstate.com 38 www.allstate.com 2024 Form 10-K Property-Liability 2024 Form 10-K Property-Liability"
    },
    {
      "status": "ADDED",
      "current_title": "Change in underwriting results from 2022 to 2023",
      "prior_title": null,
      "current_body": "The Allstate Corporation 41 The Allstate Corporation 41 The Allstate Corporation 41 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection Underwriting income (loss) by line of businessFor the years ended December 31,($ in millions)202420232022Auto $1,810 $(1,109)$(3,014)Homeowners 1,319 (803)671 Other personal lines (1)67 (39)(88)Commercial lines(240)(265)(464)Other business lines (2)185 115 105 Answer Financial12 11 8 Total$3,153 $(2,090)$(2,782)"
    },
    {
      "status": "ADDED",
      "current_title": "Total premiums earned",
      "prior_title": null,
      "current_body": "Unearned premium balance by line of business($ in millions)As of December 31,20242023Auto$10,931 $10,116 Homeowners8,060 6,986 Other personal lines 1,473 1,333 Commercial lines248 349 Other business lines355 317 Total$21,067 $19,101"
    },
    {
      "status": "ADDED",
      "current_title": "Unearned premium balance by line of business",
      "prior_title": null,
      "current_body": "Total 42 www.allstate.com 42 www.allstate.com 42 www.allstate.com 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection Policies in force by line of businessPIF (thousands)202420232022Auto24,936 25,283 26,034 Homeowners7,511 7,338 7,260 Other personal lines4,870 4,863 4,936 Commercial lines213 284 311 Total 37,530 37,768 38,541"
    },
    {
      "status": "ADDED",
      "current_title": "Policies in force by line of business",
      "prior_title": null,
      "current_body": "Auto insurance premiums written increased 9.8% or $3.34 billion in 2024 compared to 2023, primarily due to the following factors:•Increased average premiums driven by rate increases. In 2024, rate increases of 10.4% were implemented in 55 locations, resulting in total insurance premium impact of 7.5%•In 2024, we have removed underwriting restrictions in areas that represent the majority of Allstate brand countrywide premiums, which is expected to increase premiums written and PIF. In locations not achieving acceptable returns, we expect to continue to pursue targeted rate increases. In states where we are not achieving acceptable returns, we plan to implement rates that keep pace with increasing costs. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association•PIF decreased 1.4% or 347 thousand to 24,936 thousand as of December 31, 2024 compared to December 31, 2023•Increased new issued applications in all channels Auto insurance premiums written increased 9.8% or $3.34 billion in 2024 compared to 2023, primarily due to the following factors:•Increased average premiums driven by rate increases. In 2024, rate increases of 10.4% were implemented in 55 locations, resulting in total insurance premium impact of 7.5%•In 2024, we have removed underwriting restrictions in areas that represent the majority of Allstate brand countrywide premiums, which is expected to increase premiums written and PIF. In locations not achieving acceptable returns, we expect to Auto insurance premiums written increased 9.8% or $3.34 billion in 2024 compared to 2023, primarily due to the following factors: •Increased average premiums driven by rate increases. In 2024, rate increases of 10.4% were implemented in 55 locations, resulting in total insurance premium impact of 7.5% •In 2024, we have removed underwriting restrictions in areas that represent the majority of Allstate brand countrywide premiums, which is expected to increase premiums written and PIF. In locations not achieving acceptable returns, we expect to continue to pursue targeted rate increases. In states where we are not achieving acceptable returns, we plan to implement rates that keep pace with increasing costs. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association•PIF decreased 1.4% or 347 thousand to 24,936 thousand as of December 31, 2024 compared to December 31, 2023•Increased new issued applications in all channels continue to pursue targeted rate increases. In states where we are not achieving acceptable returns, we plan to implement rates that keep pace with increasing costs. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association •PIF decreased 1.4% or 347 thousand to 24,936 thousand as of December 31, 2024 compared to December 31, 2023 •Increased new issued applications in all channels Auto premium measures and statistics2024202320222024 vs. 2023New issued applications (thousands)Allstate Protection by channelExclusive agency2,579 2,294 2,401 12.4 %Independent agency2,276 1,989 1,718 14.4 Direct2,247 1,632 2,202 37.7 Total new issued applications7,102 5,915 6,321 20.1 Allstate brand average premium$843 $757 $659 11.4 %"
    },
    {
      "status": "ADDED",
      "current_title": "2024 vs. 2023",
      "prior_title": null,
      "current_body": "Exclusive agency Independent agency Direct Homeowners insurance premiums written increased 14.6% or $1.83 billion in 2024 compared to 2023, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth•In 2024 rate increases of 14.5% were implemented in 53 locations, resulting in total insurance premium impact of 11.0%•Increased new issued applications in the exclusive agency and direct channelsPolicy growth is being driven primarily by the Allstate brand and is geographically widespread. We are not writing new homeowners business in California and Florida and we did not write new homeowners business in New Jersey in 2024. We are also non-renewing certain policies in Florida. We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association. Homeowners insurance premiums written increased 14.6% or $1.83 billion in 2024 compared to 2023, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth•In 2024 rate increases of 14.5% were implemented in 53 locations, resulting in total insurance premium impact of 11.0%•Increased new issued applications in the exclusive agency and direct channelsPolicy growth is being driven primarily by the Allstate brand and is geographically widespread. We Homeowners insurance premiums written increased 14.6% or $1.83 billion in 2024 compared to 2023, primarily due to the following factors: •Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth •In 2024 rate increases of 14.5% were implemented in 53 locations, resulting in total insurance premium impact of 11.0% •Increased new issued applications in the exclusive agency and direct channels Policy growth is being driven primarily by the Allstate brand and is geographically widespread. We are not writing new homeowners business in California and Florida and we did not write new homeowners business in New Jersey in 2024. We are also non-renewing certain policies in Florida. We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association. are not writing new homeowners business in California and Florida and we did not write new homeowners business in New Jersey in 2024. We are also non-renewing certain policies in Florida. We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns. National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association. Homeowners premium measures and statistics2024202320222024 vs. 2023New issued applications (thousands) Allstate Protection by channelExclusive agency946 800 826 18.3 %Independent agency226 232 202 (2.6)Direct133 79 94 68.4 Total new issued applications 1,305 1,111 1,122 17.5 Allstate brand average premium$2,021 $1,812 $1,614 11.5 %"
    },
    {
      "status": "ADDED",
      "current_title": "Summarized financial information",
      "prior_title": null,
      "current_body": "Intersegment insurance premiums and service fees (1)"
    },
    {
      "status": "ADDED",
      "current_title": "Allstate Protection",
      "prior_title": null,
      "current_body": "The table below shows Allstate Protection net reserves representing the estimated cost of outstanding claims as they were recorded at the beginning of years 2024, 2023, and 2022, and the effect of reestimates in each year. Impact of reserve reestimates by line on net reserves, combined ratio and underwriting income202420232022($ in millions)January 1 reservesReserve reestimatesEffect on combined ratioJanuary 1 reservesReserve reestimatesEffect on combined ratioJanuary 1 reservesReserve reestimatesEffect on combined ratioAuto (1)$21,286 $(364)(0.7)$19,365 $244 0.5 $16,078 $1,185 2.7 Homeowners (1)4,754 (395)(0.7)3,520 102 0.2 2,731 200 0.4 Other personal lines1,736 217 0.4 1,653 19 0.1 1,844 (32)(0.1)Commercial lines and other (2)2,193 166 0.3 2,338 96 0.2 1,471 266 0.6 Total Allstate Protection$29,969 $(376)(0.7)$26,876 $461 1.0 $22,124 $1,619 3.6 Underwriting income (loss)$3,153 $(2,090)$(2,782)"
    },
    {
      "status": "ADDED",
      "current_title": "Effect on combined ratio",
      "prior_title": null,
      "current_body": "Auto (1) Homeowners (1) Commercial lines and other (2)"
    },
    {
      "status": "ADDED",
      "current_title": "Underwriting income (loss)",
      "prior_title": null,
      "current_body": "(1)2022 beginning reserves includes a $944 million reclassification of reserves from homeowners to auto. (2)Includes the unamortized fair value adjustment related to the acquisition of National General. Favorable reserve reestimates in 2024 totaled $376 million, representing 11.9% of underwriting income, were primarily due to catastrophe reserve reestimates in homeowners and non-catastrophe reserve reestimates in personal auto lines, partially offset by unfavorable reserve reestimates in other personal lines and commercial lines driven by transportation network company coverage no longer offered.Unfavorable reserve reestimates in 2023 totaled $461 million and represented 22.1% of the underwriting loss and were primarily due to National General personal auto lines, homeowners and commercial lines. Favorable reserve reestimates in 2024 totaled $376 million, representing 11.9% of underwriting income, were primarily due to catastrophe reserve reestimates in homeowners and non-catastrophe reserve reestimates in personal auto lines, partially offset by unfavorable reserve reestimates in other personal lines and commercial lines driven by transportation network company coverage no longer offered. Favorable reserve reestimates in 2024 totaled $376 million, representing 11.9% of underwriting income, were primarily due to catastrophe reserve reestimates in homeowners and non-catastrophe reserve reestimates in personal auto lines, partially offset by unfavorable reserve reestimates in other personal lines and commercial lines driven by transportation network company coverage no longer offered. Unfavorable reserve reestimates in 2023 totaled $461 million and represented 22.1% of the underwriting loss and were primarily due to National General personal auto lines, homeowners and commercial lines. Unfavorable reserve reestimates in 2023 totaled $461 million and represented 22.1% of the underwriting loss and were primarily due to National General personal auto lines, homeowners and commercial lines. 54 www.allstate.com 54 www.allstate.com 54 www.allstate.com 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense"
    },
    {
      "status": "ADDED",
      "current_title": "Summarized financial information",
      "prior_title": null,
      "current_body": "Intersegment insurance premiums and service fees (1)"
    },
    {
      "status": "ADDED",
      "current_title": "Investments outlook",
      "prior_title": null,
      "current_body": "Our focus is on the following priorities: •Enhance investment portfolio returns through use of a dynamic capital allocation framework and focus on tax efficiency. •Leverage our broad capabilities to manage the portfolio to earn higher risk-adjusted returns on capital. •Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile. We utilize our integrated enterprise risk and return management framework to determine the amount of investment risk we are willing to accept. Beginning in 2023, we extended the fixed income portfolio duration as the sustained higher market yields provided an opportunity to increase risk-adjusted returns. In 2024, we increased public equity securities by $2.05 billion primarily funded through the sale of investment grade corporate bonds and short-term investments. 62 www.allstate.com 62 www.allstate.com 62 www.allstate.com 2024 Form 10-K Investments 2024 Form 10-K Investments Portfolio composition and strategy by reporting segment (1)As of December 31, 2024($ in millions)Property-LiabilityProtection ServicesAllstate Health and Benefits Corporate and OtherTotalFixed income securities (2)$49,203 $1,868 $362 $1,314 $52,747 Equity securities (3)3,830 229 — 404 4,463 Mortgage loans, net784 — — — 784 Limited partnership interests9,244 — — 11 9,255 Short-term investments (4)3,786 131 17 603 4,537 Other investments, net824 — — — 824 Total$67,671 $2,228 $379 $2,332 $72,610 Percentage to total 93.2 %3.1 %0.5 %3.2 %100.0 %Market-based$57,489 $2,228 $379 $2,054 $62,150 Performance-based10,182 — — 278 10,460 Total$67,671 $2,228 $379 $2,332 $72,610"
    },
    {
      "status": "ADDED",
      "current_title": "Unrealized net capital gains (losses)",
      "prior_title": null,
      "current_body": "Equity method of accounting (“EMA”) limited partnerships 66 www.allstate.com 66 www.allstate.com 66 www.allstate.com 2024 Form 10-K Investments 2024 Form 10-K Investments Gross unrealized gains (losses) on fixed income securities by type and sectorAs of December 31, 2024Amortized cost, netGross unrealizedFair value($ in millions)GainsLossesCorporateBanking$4,194 $38 $(63)$4,169 Basic industry833 6 (21)818 Capital goods2,706 25 (62)2,669 Communications2,364 16 (73)2,307 Consumer goods (cyclical and non-cyclical)6,674 51 (165)6,560 Energy2,771 32 (50)2,753 Financial services2,104 17 (53)2,068 Technology2,613 18 (94)2,537 Transportation815 7 (19)803 Utilities5,125 56 (89)5,092 Other431 6 (21)416 Total corporate fixed income portfolio30,630 272 (710)30,192 U.S. government and agencies11,423 15 (330)11,108 Municipal8,985 33 (176)8,842 Foreign government1,352 22 (10)1,364 ABS1,226 19 (4)1,241 Total fixed income securities$53,616 $361 $(1,230)$52,747"
    },
    {
      "status": "ADDED",
      "current_title": "Components of net gains (losses) on investments and derivatives and the related tax effect",
      "prior_title": null,
      "current_body": "Credit losses (1) Limited partnerships (2) Property-Liability (1) Market-based (1) (1)2024 includes $123 million loss related to the carrying value of the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”). See Note 9 for further details. (2)Relates to limited partnerships where the underlying assets are predominately public equity securities. Net losses on investments and derivatives in 2024 related primarily to losses on sales of fixed income securities and a loss recognized related to surplus notes issued by the Reciprocal Exchanges, partially offset by valuation gains on equity investments. Net losses on investments and derivatives in 2023 related primarily to losses on sales of fixed income securities, partially offset by valuation gains on equity investments.Net losses on sales in 2024 and 2023 related primarily to sales of fixed income securities in connection with ongoing portfolio management.Net losses on valuation change and settlements of derivatives of $14 million in 2024 primarily related to net losses on rate futures used to manage duration and equity futures used to manage equity exposure, partially offset by gains on foreign currency contracts used to manage foreign currency risk. Net losses in 2023 primarily related to net losses on equity futures used to manage equity exposure, losses on credit default swaps used to reduce credit risk and losses on foreign currency contracts used to manage foreign currency risk. Net losses on investments and derivatives in 2024 related primarily to losses on sales of fixed income securities and a loss recognized related to surplus notes issued by the Reciprocal Exchanges, partially offset by valuation gains on equity investments. Net losses on investments and derivatives in 2023 related primarily to losses on sales of fixed income securities, partially offset by valuation gains on equity investments.Net losses on sales in 2024 and 2023 related primarily to sales of fixed income securities in connection with ongoing portfolio management. Net losses on investments and derivatives in 2024 related primarily to losses on sales of fixed income securities and a loss recognized related to surplus notes issued by the Reciprocal Exchanges, partially offset by valuation gains on equity investments. Net losses on investments and derivatives in 2023 related primarily to losses on sales of fixed income securities, partially offset by valuation gains on equity investments. Net losses on sales in 2024 and 2023 related primarily to sales of fixed income securities in connection with ongoing portfolio management. Net losses on valuation change and settlements of derivatives of $14 million in 2024 primarily related to net losses on rate futures used to manage duration and equity futures used to manage equity exposure, partially offset by gains on foreign currency contracts used to manage foreign currency risk. Net losses in 2023 primarily related to net losses on equity futures used to manage equity exposure, losses on credit default swaps used to reduce credit risk and losses on foreign currency contracts used to manage foreign currency risk. Net losses on valuation change and settlements of derivatives of $14 million in 2024 primarily related to net losses on rate futures used to manage duration and equity futures used to manage equity exposure, partially offset by gains on foreign currency contracts used to manage foreign currency risk. Net losses in 2023 primarily related to net losses on equity futures used to manage equity exposure, losses on credit default swaps used to reduce credit risk and losses on foreign currency contracts used to manage foreign currency risk. The Allstate Corporation 69 The Allstate Corporation 69 The Allstate Corporation 69 2024 Form 10-K Investments 2024 Form 10-K Investments Net gains (losses) on performance-based investments and derivativesFor the years ended December 31, ($ in millions)202420232022Sales$33 $76 $29 Credit losses(32)(68)(30)Valuation change of equity investments48 58 (35)Valuation change and settlements of derivatives33 (14)47 Total performance-based$82 $52 $11"
    },
    {
      "status": "ADDED",
      "current_title": "Net gains (losses) on performance-based investments and derivatives",
      "prior_title": null,
      "current_body": "Net gains on performance-based investments and derivatives in 2024 primarily related to increased valuation of equity investments, gains on sales and valuation change and settlements of derivatives, partially offset by credit losses. 2023 primarily related to gains on sales and increased valuation of equity investments, partially offset by increased credit losses. 70 www.allstate.com 70 www.allstate.com 70 www.allstate.com 2024 Form 10-K Market Risk 2024 Form 10-K Market Risk"
    },
    {
      "status": "ADDED",
      "current_title": "Market Risk",
      "prior_title": null,
      "current_body": "Market risk is the risk that we will incur losses due to adverse changes in interest rates, credit spreads, equity prices, commodity prices or foreign currency exchange rates. Adverse changes to these rates and prices may occur due to changes in fiscal policy, inflation, the economic climate, the liquidity of a market or market segment, insolvency or financial distress of key market makers or participants or changes in market perceptions of credit worthiness or risk tolerance. Our primary market risk exposures are to changes in interest rates, credit spreads and equity prices, and to a lesser extent, foreign currency exchange rates. We also have direct and indirect exposure to commodity price changes through our diversified investments in agriculture, infrastructure and energy primarily held in limited partnership interests and consolidated subsidiaries.The active management of market risk is integral to our results of operations. We may use the following approaches to manage exposure to market risk within defined tolerance ranges: 1)Rebalance existing asset or liability portfolios2)Change the type of investments purchased in the future 3)Use derivative instruments to modify the market risk characteristics of existing assets and liabilities or assets expected to be purchasedOverview In formulating and implementing guidelines for investing funds, we seek to earn attractive risk-adjusted returns that enhance our ability to offer competitive prices to customers while contributing to stable profits and long-term capital growth. Accordingly, our investment decisions and objectives are informed by underlying risks. Investment policies define the overall framework for managing market and other investment risks, including accountability and controls over risk management activities. Subsidiaries that conduct investment activities follow policies that have been approved by their respective boards of directors and which specify the investment limits and strategies that are appropriate given the liquidity, surplus, product profile and regulatory requirements of the subsidiary. Executive oversight of investment activities is conducted primarily through the subsidiaries’ boards of directors and legal entity investment committees. The Enterprise Risk and Return Council (“ERRC”) oversees the aggregate risk of Allstate and its subsidiaries. Working in conjunction with the board or the investment committee of each subsidiary, as applicable, the ERRC evaluates the risk tolerance of each subsidiary and determines the aggregate risk tolerance of the enterprise.We use widely accepted quantitative and qualitative approaches to measure, monitor and manage market risk. We evaluate our market risk exposure using multiple measures including but not limited to:• Duration, a measure of the price sensitivity of assets and liabilities to changes in interest rates• Value-at-risk, a statistical estimate that the change in fair value of a portfolio will exceed a certain amount over a given time horizon, at a specified probability• Scenario analysis, an estimate of the potential changes in the fair value of a portfolio that could occur under hypothetical market conditions defined by changes to multiple market risk factors: interest rates, credit spreads, equity prices or currency exchange rates• Sensitivity analysis, an estimate of the potential changes in the fair value of a portfolio that could occur using hypothetical shocks to a market risk factor The selection of measures used in our sensitivity analysis should not be construed as our prediction of future market events, but only as an illustration of the potential effect of such an event In general, we establish investment portfolio asset allocation and market risk limits based upon a combination of these measures. The asset allocation limits place restrictions on the total funds that may be invested within an asset class. Comprehensive day-to-day management of market risk within defined tolerance ranges occurs as portfolio managers buy and sell within their respective markets based upon the acceptable boundaries established by investment policies. Although we apply a similar overall philosophy to market risk, the underlying business frameworks and the accounting and regulatory environments may differ between our products and therefore affect investment decisions and risk parameters. Our actual experience may differ from the results of the sensitivity measurements provided below.Interest rate risk is the risk that we will incur a loss due to adverse changes in risk-free interest rates. This risk arises from many of our primary activities, as we invest substantial funds in interest-sensitive assets. Changes in interest rates can have favorable and unfavorable effects on our results. For example, increases in rates can improve investment income, but decrease the fair value of our fixed income securities portfolio which may result in sales of assets at losses. Decreases in rates could increase the fair value of our fixed income securities portfolio while decreasing future investment income due to reinvestment at lower market yields and accelerated pay-downs and prepayments of certain investments.For our issued debt, we monitor market interest rates and evaluate refinancing opportunities as maturity dates approach. To mitigate this risk, we ladder the maturity dates of our debt. For our issued noncumulative perpetual preferred stock, we monitor market dividend rates and evaluate opportunities to redeem or refinance on or after specified dates. For further detail regarding our debt and our preferred stock, see Note 14 of the consolidated financial statements and the Capital Resources and Liquidity section of this Item. Market risk is the risk that we will incur losses due to adverse changes in interest rates, credit spreads, equity prices, commodity prices or foreign currency exchange rates. Adverse changes to these rates and prices may occur due to changes in fiscal policy, inflation, the economic climate, the liquidity of a market or market segment, insolvency or financial distress of key market makers or participants or changes in market perceptions of credit worthiness or risk tolerance. Our primary market risk exposures are to changes in interest rates, credit spreads and equity prices, and to a lesser extent, foreign currency exchange rates. We also have direct and indirect exposure to commodity price changes through our diversified investments in agriculture, infrastructure and energy primarily held in limited partnership interests and consolidated subsidiaries.The active management of market risk is integral to our results of operations. We may use the following approaches to manage exposure to market risk within defined tolerance ranges: 1)Rebalance existing asset or liability portfolios2)Change the type of investments purchased in the future 3)Use derivative instruments to modify the market risk characteristics of existing assets and liabilities or assets expected to be purchasedOverview In formulating and implementing guidelines for investing funds, we seek to earn attractive risk-adjusted returns that enhance our ability to offer competitive prices to customers while contributing to stable profits and long-term capital growth. Accordingly, our investment decisions and objectives are informed by underlying risks. Investment policies define the overall framework for managing market and other investment risks, including accountability and controls over risk management activities. Subsidiaries that conduct investment activities follow policies that have been approved by their respective boards of directors and which specify the investment limits and strategies that are appropriate given the liquidity, surplus, product profile and regulatory requirements of the subsidiary. Executive oversight of investment activities is conducted primarily through the subsidiaries’ boards of directors and legal entity investment committees. The Enterprise Risk and Return Council (“ERRC”) oversees the aggregate risk of Allstate and its subsidiaries. Working in conjunction with the board or the investment committee of each subsidiary, as applicable, the ERRC evaluates the risk tolerance of each subsidiary and determines the aggregate risk tolerance of the enterprise.We use widely accepted quantitative and qualitative approaches to measure, monitor and manage market risk. We evaluate our market risk exposure using multiple measures including but not limited to: Market risk is the risk that we will incur losses due to adverse changes in interest rates, credit spreads, equity prices, commodity prices or foreign currency exchange rates. Adverse changes to these rates and prices may occur due to changes in fiscal policy, inflation, the economic climate, the liquidity of a market or market segment, insolvency or financial distress of key market makers or participants or changes in market perceptions of credit worthiness or risk tolerance. Our primary market risk exposures are to changes in interest rates, credit spreads and equity prices, and to a lesser extent, foreign currency exchange rates. We also have direct and indirect exposure to commodity price changes through our diversified investments in agriculture, infrastructure and energy primarily held in limited partnership interests and consolidated subsidiaries. The active management of market risk is integral to our results of operations. We may use the following approaches to manage exposure to market risk within defined tolerance ranges: 1)Rebalance existing asset or liability portfolios 2)Change the type of investments purchased in the future 3)Use derivative instruments to modify the market risk characteristics of existing assets and liabilities or assets expected to be purchased Overview In formulating and implementing guidelines for investing funds, we seek to earn attractive risk-adjusted returns that enhance our ability to offer competitive prices to customers while contributing to stable profits and long-term capital growth. Accordingly, our investment decisions and objectives are informed by underlying risks. Investment policies define the overall framework for managing market and other investment risks, including accountability and controls over risk management activities. Subsidiaries that conduct investment activities follow policies that have been approved by their respective boards of directors and which specify the investment limits and strategies that are appropriate given the liquidity, surplus, product profile and regulatory requirements of the subsidiary. Executive oversight of investment activities is conducted primarily through the subsidiaries’ boards of directors and legal entity investment committees. The Enterprise Risk and Return Council (“ERRC”) oversees the aggregate risk of Allstate and its subsidiaries. Working in conjunction with the board or the investment committee of each subsidiary, as applicable, the ERRC evaluates the risk tolerance of each subsidiary and determines the aggregate risk tolerance of the enterprise. We use widely accepted quantitative and qualitative approaches to measure, monitor and manage market risk. We evaluate our market risk exposure using multiple measures including but not limited to: • Duration, a measure of the price sensitivity of assets and liabilities to changes in interest rates• Value-at-risk, a statistical estimate that the change in fair value of a portfolio will exceed a certain amount over a given time horizon, at a specified probability• Scenario analysis, an estimate of the potential changes in the fair value of a portfolio that could occur under hypothetical market conditions defined by changes to multiple market risk factors: interest rates, credit spreads, equity prices or currency exchange rates• Sensitivity analysis, an estimate of the potential changes in the fair value of a portfolio that could occur using hypothetical shocks to a market risk factor The selection of measures used in our sensitivity analysis should not be construed as our prediction of future market events, but only as an illustration of the potential effect of such an event In general, we establish investment portfolio asset allocation and market risk limits based upon a combination of these measures. The asset allocation limits place restrictions on the total funds that may be invested within an asset class. Comprehensive day-to-day management of market risk within defined tolerance ranges occurs as portfolio managers buy and sell within their respective markets based upon the acceptable boundaries established by investment policies. Although we apply a similar overall philosophy to market risk, the underlying business frameworks and the accounting and regulatory environments may differ between our products and therefore affect investment decisions and risk parameters. Our actual experience may differ from the results of the sensitivity measurements provided below.Interest rate risk is the risk that we will incur a loss due to adverse changes in risk-free interest rates. This risk arises from many of our primary activities, as we invest substantial funds in interest-sensitive assets. Changes in interest rates can have favorable and unfavorable effects on our results. For example, increases in rates can improve investment income, but decrease the fair value of our fixed income securities portfolio which may result in sales of assets at losses. Decreases in rates could increase the fair value of our fixed income securities portfolio while decreasing future investment income due to reinvestment at lower market yields and accelerated pay-downs and prepayments of certain investments.For our issued debt, we monitor market interest rates and evaluate refinancing opportunities as maturity dates approach. To mitigate this risk, we ladder the maturity dates of our debt. For our issued noncumulative perpetual preferred stock, we monitor market dividend rates and evaluate opportunities to redeem or refinance on or after specified dates. For further detail regarding our debt and our preferred stock, see Note 14 of the consolidated financial statements and the Capital Resources and Liquidity section of this Item. • Duration, a measure of the price sensitivity of assets and liabilities to changes in interest rates• Value-at-risk, a statistical estimate that the change in fair value of a portfolio will exceed a certain amount over a given time horizon, at a specified probability• Scenario analysis, an estimate of the potential changes in the fair value of a portfolio that could occur under hypothetical market conditions defined by changes to multiple market risk factors: interest rates, credit spreads, equity prices or currency exchange rates• Sensitivity analysis, an estimate of the potential changes in the fair value of a portfolio that could occur using hypothetical shocks to a market risk factor The selection of measures used in our sensitivity analysis should not be construed as our prediction of future market events, but only as an illustration of the potential effect of such an event • Duration, a measure of the price sensitivity of assets and liabilities to changes in interest rates • Value-at-risk, a statistical estimate that the change in fair value of a portfolio will exceed a certain amount over a given time horizon, at a specified probability • Scenario analysis, an estimate of the potential changes in the fair value of a portfolio that could occur under hypothetical market conditions defined by changes to multiple market risk factors: interest rates, credit spreads, equity prices or currency exchange rates • Sensitivity analysis, an estimate of the potential changes in the fair value of a portfolio that could occur using hypothetical shocks to a market risk factor The selection of measures used in our sensitivity analysis should not be construed as our prediction of future market events, but only as an illustration of the potential effect of such an event In general, we establish investment portfolio asset allocation and market risk limits based upon a combination of these measures. The asset allocation limits place restrictions on the total funds that may be invested within an asset class. Comprehensive day-to-day management of market risk within defined tolerance ranges occurs as portfolio managers buy and sell within their respective markets based upon the acceptable boundaries established by investment policies. Although we apply a similar overall philosophy to market risk, the underlying business frameworks and the accounting and regulatory environments may differ between our products and therefore affect investment decisions and risk parameters. Our actual experience may differ from the results of the sensitivity measurements provided below. Interest rate risk is the risk that we will incur a loss due to adverse changes in risk-free interest rates. This risk arises from many of our primary activities, as we invest substantial funds in interest-sensitive assets. Changes in interest rates can have favorable and unfavorable effects on our results. For example, increases in rates can improve investment income, but decrease the fair value of our fixed income securities portfolio which may result in sales of assets at losses. Decreases in rates could increase the fair value of our fixed income securities portfolio while decreasing future investment income due to reinvestment at lower market yields and accelerated pay-downs and prepayments of certain investments. For our issued debt, we monitor market interest rates and evaluate refinancing opportunities as maturity dates approach. To mitigate this risk, we ladder the maturity dates of our debt. For our issued noncumulative perpetual preferred stock, we monitor market dividend rates and evaluate opportunities to redeem or refinance on or after specified dates. For further detail regarding our debt and our preferred stock, see Note 14 of the consolidated financial statements and the Capital Resources and Liquidity section of this Item. The Allstate Corporation 71 The Allstate Corporation 71 The Allstate Corporation 71 2024 Form 10-K Market Risk 2024 Form 10-K Market Risk Our assessment of interest rate risk reflects the effect of changing risk-free interest rates on interest-sensitive assets, including investments with callable or prepayable features. As of December 31, 2024, the fixed income portfolio duration, including the effects of interest rate derivatives, was 5.3 compared to 4.8 as of December 31, 2023.Change in fair value of interest-sensitive assets (1)As of December 31,($ in millions)20242023-100 bps interest rate change$2,996 $2,530 +100 bps interest rate change(2,765)(2,314)+200 bps interest rate change(5,298)(4,410)(1)Includes the effects of interest rate derivatives. Credit spread risk is the risk that we will incur a loss due to adverse changes in credit spreads (“spreads”). A credit spread is the additional yield on fixed income securities and loans above the risk-free rate that market participants require to compensate them for assuming credit, liquidity or prepayment risks. This risk arises from many of our primary activities, as we invest substantial funds in spread-sensitive fixed income assets.Our assessment of credit spread risk reflects the effect of changing credit spreads on spread-sensitive assets, including investments with callable or prepayable features. As of December 31, 2024 and 2023, the spread duration(1) was 4.7.Change in fair value of spread-sensitive assets (1)As of December 31,($ in millions)20242023+100 bps credit spread change$(2,118)$(1,898)(1)Includes the effects of credit derivatives.Equity price risk is the risk that we will incur losses due to adverse changes in the levels of equity indices, the value of individual stocks, or private market valuations related to our limited partnership interests.We periodically use derivatives to reduce equity price risk or to adjust our equity risk profile. Equity derivatives may also be utilized to replicate cash market positions to increase equity exposure. Equity investments(1) As of December 31, 2024, we held $4.00 billion in equity investments that comprise equity securities, excluding those with fixed income securities as their underlying investments, and including limited partnership interests where the underlying assets are predominately public equity securities, compared to $1.52 billion as of December 31, 2023. Change in fair value of equity investments (1)As of December 31,($ in millions)20242023-10% change in equity valuations$(399)$(127)(1)Includes the effects of equity derivatives.Limited partnership interests As of December 31, 2024, we held $8.95 billion in limited partnership interests, excluding those limited partnership interests where the underlying assets are predominately public equity securities, compared to $8.24 billion as of December 31, 2023. These illiquid investments are primarily comprised of private equity and real estate funds, with valuation changes typically reflecting the idiosyncratic performance of the underlying asset.Change in fair value of limited partnership interestsAs of December 31,($ in millions)20242023-10% change in private market valuations$(895)$(824)For limited partnership interests, quarterly changes in fair values may not be highly correlated to equity indices in the short term and changes in value of these investments are generally recognized on a three-month delay due to the availability of the related investee financial statements. Foreign currency exchange rate risk is the risk that we will incur economic losses due to adverse changes in foreign currency exchange rates. This risk primarily arises from our foreign equity investments, including common stocks, limited partnership interests, and our Canada, Northern Ireland, Europe and India operations. We use foreign currency derivative contracts to partially offset this risk.As of December 31, 2024, we had $3.74 billion in foreign currency denominated investments, including the effects of foreign currency derivative contracts, and $1.29 billion net investment in our foreign subsidiaries, primarily related to our Canada operations. These amounts were $3.56 billion and $1.25 billion, respectively, as of December 31, 2023. Change in fair value of foreign currency denominated investmentsAs of December 31,($ in millions)20242023–10% change in foreign currency exchange rates (1)$(374)$(356)–10% change in net investments in foreign subsidiaries (2)(129)(125)(1)Includes the effects of foreign currency derivative contracts and excludes the offset from liabilities in foreign currencies. (2)Includes the effects of foreign currency derivative contracts and the offset from liabilities in foreign currencies. Our assessment of interest rate risk reflects the effect of changing risk-free interest rates on interest-sensitive assets, including investments with callable or prepayable features. As of December 31, 2024, the fixed income portfolio duration, including the effects of interest rate derivatives, was 5.3 compared to 4.8 as of December 31, 2023.Change in fair value of interest-sensitive assets (1)As of December 31,($ in millions)20242023-100 bps interest rate change$2,996 $2,530 +100 bps interest rate change(2,765)(2,314)+200 bps interest rate change(5,298)(4,410)(1)Includes the effects of interest rate derivatives. Credit spread risk is the risk that we will incur a loss due to adverse changes in credit spreads (“spreads”). A credit spread is the additional yield on fixed income securities and loans above the risk-free rate that market participants require to compensate them for assuming credit, liquidity or prepayment risks. This risk arises from many of our primary activities, as we invest substantial funds in spread-sensitive fixed income assets.Our assessment of credit spread risk reflects the effect of changing credit spreads on spread-sensitive assets, including investments with callable or prepayable features. As of December 31, 2024 and 2023, the spread duration(1) was 4.7.Change in fair value of spread-sensitive assets (1)As of December 31,($ in millions)20242023+100 bps credit spread change$(2,118)$(1,898)(1)Includes the effects of credit derivatives.Equity price risk is the risk that we will incur losses due to adverse changes in the levels of equity indices, the value of individual stocks, or private market valuations related to our limited partnership interests.We periodically use derivatives to reduce equity price risk or to adjust our equity risk profile. Equity derivatives may also be utilized to replicate cash market positions to increase equity exposure. Equity investments(1) As of December 31, 2024, we held $4.00 billion in equity investments that comprise equity securities, excluding those with fixed income securities as their underlying investments, and including limited partnership interests where the underlying assets are predominately public equity securities, compared to $1.52 billion as of December 31, 2023. Change in fair value of equity investments (1)As of December 31,($ in millions)20242023-10% change in equity valuations$(399)$(127)(1)Includes the effects of equity derivatives. Our assessment of interest rate risk reflects the effect of changing risk-free interest rates on interest-sensitive assets, including investments with callable or prepayable features. As of December 31, 2024, the fixed income portfolio duration, including the effects of interest rate derivatives, was 5.3 compared to 4.8 as of December 31, 2023. Change in fair value of interest-sensitive assets (1)As of December 31,($ in millions)20242023-100 bps interest rate change$2,996 $2,530 +100 bps interest rate change(2,765)(2,314)+200 bps interest rate change(5,298)(4,410)"
    },
    {
      "status": "ADDED",
      "current_title": "Change in fair value of interest-sensitive assets (1)",
      "prior_title": null,
      "current_body": "(1)Includes the effects of interest rate derivatives. Credit spread risk is the risk that we will incur a loss due to adverse changes in credit spreads (“spreads”). A credit spread is the additional yield on fixed income securities and loans above the risk-free rate that market participants require to compensate them for assuming credit, liquidity or prepayment risks. This risk arises from many of our primary activities, as we invest substantial funds in spread-sensitive fixed income assets. Our assessment of credit spread risk reflects the effect of changing credit spreads on spread-sensitive assets, including investments with callable or prepayable features. As of December 31, 2024 and 2023, the spread duration(1) was 4.7. Change in fair value of spread-sensitive assets (1)As of December 31,($ in millions)20242023+100 bps credit spread change$(2,118)$(1,898)"
    },
    {
      "status": "ADDED",
      "current_title": "Change in fair value of spread-sensitive assets (1)",
      "prior_title": null,
      "current_body": "(1)Includes the effects of credit derivatives. Equity price risk is the risk that we will incur losses due to adverse changes in the levels of equity indices, the value of individual stocks, or private market valuations related to our limited partnership interests. We periodically use derivatives to reduce equity price risk or to adjust our equity risk profile. Equity derivatives may also be utilized to replicate cash market positions to increase equity exposure. Equity investments(1) As of December 31, 2024, we held $4.00 billion in equity investments that comprise equity securities, excluding those with fixed income securities as their underlying investments, and including limited partnership interests where the underlying assets are predominately public equity securities, compared to $1.52 billion as of December 31, 2023. Change in fair value of equity investments (1)As of December 31,($ in millions)20242023-10% change in equity valuations$(399)$(127)"
    },
    {
      "status": "ADDED",
      "current_title": "Change in fair value of equity investments (1)",
      "prior_title": null,
      "current_body": "(1)Includes the effects of equity derivatives. Limited partnership interests As of December 31, 2024, we held $8.95 billion in limited partnership interests, excluding those limited partnership interests where the underlying assets are predominately public equity securities, compared to $8.24 billion as of December 31, 2023. These illiquid investments are primarily comprised of private equity and real estate funds, with valuation changes typically reflecting the idiosyncratic performance of the underlying asset.Change in fair value of limited partnership interestsAs of December 31,($ in millions)20242023-10% change in private market valuations$(895)$(824)For limited partnership interests, quarterly changes in fair values may not be highly correlated to equity indices in the short term and changes in value of these investments are generally recognized on a three-month delay due to the availability of the related investee financial statements. Foreign currency exchange rate risk is the risk that we will incur economic losses due to adverse changes in foreign currency exchange rates. This risk primarily arises from our foreign equity investments, including common stocks, limited partnership interests, and our Canada, Northern Ireland, Europe and India operations. We use foreign currency derivative contracts to partially offset this risk.As of December 31, 2024, we had $3.74 billion in foreign currency denominated investments, including the effects of foreign currency derivative contracts, and $1.29 billion net investment in our foreign subsidiaries, primarily related to our Canada operations. These amounts were $3.56 billion and $1.25 billion, respectively, as of December 31, 2023. Change in fair value of foreign currency denominated investmentsAs of December 31,($ in millions)20242023–10% change in foreign currency exchange rates (1)$(374)$(356)–10% change in net investments in foreign subsidiaries (2)(129)(125)(1)Includes the effects of foreign currency derivative contracts and excludes the offset from liabilities in foreign currencies. (2)Includes the effects of foreign currency derivative contracts and the offset from liabilities in foreign currencies. Limited partnership interests As of December 31, 2024, we held $8.95 billion in limited partnership interests, excluding those limited partnership interests where the underlying assets are predominately public equity securities, compared to $8.24 billion as of December 31, 2023. These illiquid investments are primarily comprised of private equity and real estate funds, with valuation changes typically reflecting the idiosyncratic performance of the underlying asset. Change in fair value of limited partnership interestsAs of December 31,($ in millions)20242023-10% change in private market valuations$(895)$(824)"
    },
    {
      "status": "ADDED",
      "current_title": "Change in fair value of limited partnership",
      "prior_title": null,
      "current_body": "interests For limited partnership interests, quarterly changes in fair values may not be highly correlated to equity indices in the short term and changes in value of these investments are generally recognized on a three-month delay due to the availability of the related investee financial statements. Foreign currency exchange rate risk is the risk that we will incur economic losses due to adverse changes in foreign currency exchange rates. This risk primarily arises from our foreign equity investments, including common stocks, limited partnership interests, and our Canada, Northern Ireland, Europe and India operations. We use foreign currency derivative contracts to partially offset this risk. As of December 31, 2024, we had $3.74 billion in foreign currency denominated investments, including the effects of foreign currency derivative contracts, and $1.29 billion net investment in our foreign subsidiaries, primarily related to our Canada operations. These amounts were $3.56 billion and $1.25 billion, respectively, as of December 31, 2023. Change in fair value of foreign currency denominated investmentsAs of December 31,($ in millions)20242023–10% change in foreign currency exchange rates (1)$(374)$(356)–10% change in net investments in foreign subsidiaries (2)(129)(125)"
    },
    {
      "status": "ADDED",
      "current_title": "Change in fair value of foreign currency denominated investments",
      "prior_title": null,
      "current_body": "–10% change in foreign currency exchange rates (1) –10% change in net investments in foreign subsidiaries (2) (1)Includes the effects of foreign currency derivative contracts and excludes the offset from liabilities in foreign currencies. (2)Includes the effects of foreign currency derivative contracts and the offset from liabilities in foreign currencies. 72 www.allstate.com 72 www.allstate.com 72 www.allstate.com 2024 Form 10-K Capital Resources and Liquidity 2024 Form 10-K Capital Resources and Liquidity"
    },
    {
      "status": "ADDED",
      "current_title": "Capital Resources and Liquidity",
      "prior_title": null,
      "current_body": "Capital resources consist of shareholders’ equity and debt, representing funds deployed or available to be deployed to support business operations or for general corporate purposes. Capital resourcesAs of December 31,($ in millions)202420232022Preferred stock, common stock, treasury stock, retained income and other shareholders’ equity items$22,331 $18,470 $19,880 Accumulated other comprehensive income (loss) (“AOCI”)(889)(700)(2,392)Total Allstate shareholders’ equity21,442 17,770 17,488 Debt8,085 7,942 7,964 Total capital resources$29,527 $25,712 $25,452 Ratio of debt to Allstate shareholders’ equity37.7 %44.7 %45.5 %Ratio of debt to capital resources27.4 %30.9 %31.3 %"
    },
    {
      "status": "ADDED",
      "current_title": "Capital resources",
      "prior_title": null,
      "current_body": "Accumulated other comprehensive income (loss) (“AOCI”) Allstate shareholders’ equity increased in 2024, primarily due to net income, partially offset by dividends to shareholders. In 2024, we paid dividends of $962 million and $117 million related to our common and preferred shares, respectively. Allstate shareholders’ equity increased in 2023, primarily due to lower unrealized net capital losses on investments, partially offset by dividends paid to shareholders, common share repurchases and a net loss. In 2023, we paid dividends of $925 million and $107 million related to our common and preferred shares, respectively. Repayment of debt On May 15, 2024, the Company repaid, at maturity, $350 million of 6.75% Senior Notes.Issuance of debt On June 24, 2024, the Company issued $500 million of 5.05% Senior Notes due 2029. Interest on the Senior Notes is payable semi-annually in arrears on June 24 and December 24 of each year, beginning on December 24, 2024. The Senior Notes are redeemable at any time at the applicable redemption price prior to the maturity date. The net proceeds of this issuance were used for general corporate purposes.Common share repurchases On March 31, 2024, our $5.00 billion share repurchase authorization expired.Since 1995, we have acquired 793 million shares of our common stock at a cost of $43.23 billion, primarily as part of various stock repurchase programs. We have reissued 159 million common shares since 1995, primarily associated with our equity incentive plans, the 1999 acquisition of American Heritage Life Investment Corporation and the 2001 redemption of certain mandatorily redeemable preferred securities. Since 1995, total common shares outstanding has decreased by 634 million shares or 70.5%, primarily due to our repurchase programs.Common shareholder dividends On January 2, 2024, April 1, 2024, July 1, 2024 and October 1, 2024, we paid a common shareholder dividend of $0.89, $0.92, $0.92 and $0.92, respectively. On November 14, 2024, we declared a common shareholder dividend of $0.92 payable on January 2, 2025. Allstate shareholders’ equity increased in 2024, primarily due to net income, partially offset by dividends to shareholders. In 2024, we paid dividends of $962 million and $117 million related to our common and preferred shares, respectively. Allstate shareholders’ equity increased in 2023, primarily due to lower unrealized net capital losses on investments, partially offset by dividends paid to shareholders, common share repurchases and a net loss. In 2023, we paid dividends of $925 million and $107 million related to our common and preferred shares, respectively. Repayment of debt On May 15, 2024, the Company repaid, at maturity, $350 million of 6.75% Senior Notes.Issuance of debt On June 24, 2024, the Company issued $500 million of 5.05% Senior Notes due 2029. Interest on the Senior Notes is payable semi-annually in arrears on June 24 and December 24 of each year, beginning on December 24, 2024. The Senior Notes are redeemable at any time at the applicable redemption price prior to the maturity date. The net proceeds of this issuance were used for general corporate purposes. Allstate shareholders’ equity increased in 2024, primarily due to net income, partially offset by dividends to shareholders. In 2024, we paid dividends of $962 million and $117 million related to our common and preferred shares, respectively. Allstate shareholders’ equity increased in 2023, primarily due to lower unrealized net capital losses on investments, partially offset by dividends paid to shareholders, common share repurchases and a net loss. In 2023, we paid dividends of $925 million and $107 million related to our common and preferred shares, respectively. Repayment of debt On May 15, 2024, the Company repaid, at maturity, $350 million of 6.75% Senior Notes. Issuance of debt On June 24, 2024, the Company issued $500 million of 5.05% Senior Notes due 2029. Interest on the Senior Notes is payable semi-annually in arrears on June 24 and December 24 of each year, beginning on December 24, 2024. The Senior Notes are redeemable at any time at the applicable redemption price prior to the maturity date. The net proceeds of this issuance were used for general corporate purposes. Common share repurchases On March 31, 2024, our $5.00 billion share repurchase authorization expired.Since 1995, we have acquired 793 million shares of our common stock at a cost of $43.23 billion, primarily as part of various stock repurchase programs. We have reissued 159 million common shares since 1995, primarily associated with our equity incentive plans, the 1999 acquisition of American Heritage Life Investment Corporation and the 2001 redemption of certain mandatorily redeemable preferred securities. Since 1995, total common shares outstanding has decreased by 634 million shares or 70.5%, primarily due to our repurchase programs.Common shareholder dividends On January 2, 2024, April 1, 2024, July 1, 2024 and October 1, 2024, we paid a common shareholder dividend of $0.89, $0.92, $0.92 and $0.92, respectively. On November 14, 2024, we declared a common shareholder dividend of $0.92 payable on January 2, 2025. Common share repurchases On March 31, 2024, our $5.00 billion share repurchase authorization expired. Since 1995, we have acquired 793 million shares of our common stock at a cost of $43.23 billion, primarily as part of various stock repurchase programs. We have reissued 159 million common shares since 1995, primarily associated with our equity incentive plans, the 1999 acquisition of American Heritage Life Investment Corporation and the 2001 redemption of certain mandatorily redeemable preferred securities. Since 1995, total common shares outstanding has decreased by 634 million shares or 70.5%, primarily due to our repurchase programs. Common shareholder dividends On January 2, 2024, April 1, 2024, July 1, 2024 and October 1, 2024, we paid a common shareholder dividend of $0.89, $0.92, $0.92 and $0.92, respectively. On November 14, 2024, we declared a common shareholder dividend of $0.92 payable on January 2, 2025. The Allstate Corporation 73 The Allstate Corporation 73 The Allstate Corporation 73 2024 Form 10-K Capital Resources and Liquidity 2024 Form 10-K Capital Resources and Liquidity"
    },
    {
      "status": "ADDED",
      "current_title": "Financial ratings and strength",
      "prior_title": null,
      "current_body": "Senior long-term debt, commercial paper and insurance financial strength ratingsAs of December 31, 2024Moody’sS&P Global RatingsA.M. BestThe Allstate Corporation (debt)A3BBB+a-The Allstate Corporation (short-term issuer)P-2A-2AMB-1Allstate Insurance Company (insurance financial strength)Aa3A+A+"
    },
    {
      "status": "ADDED",
      "current_title": "Senior long-term debt, commercial paper and insurance financial strength ratings",
      "prior_title": null,
      "current_body": "BBB+ a- AMB-1 A+ Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage. The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies. These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock.The Allstate Corporation (the “Corporation”) and Allstate Insurance Company (“AIC”) In May 2024, S&P affirmed the Corporation’s senior debt and short-term issuer ratings of BBB+ and A-2, respectively, and AIC’s insurance financial strength rating of A+. The outlook for the ratings is stable.In August 2024, A.M. Best affirmed the Corporation’s senior debt and short-term issuer ratings of a- and AMB-1, respectively, and AIC’s insurance financial strength rating of A+. The outlook for the ratings is stable.In October 2024, Moody’s affirmed the Corporation’s senior debt and short-term issuer ratings of A3 and P-2, respectively, and AIC’s insurance financial strength rating of Aa3. The outlook for the ratings is negative.American Heritage Life (“AHL”) In August 2024, subsequent to the announcement of the pending sale of the employer voluntary benefits business, A.M. Best placed under review with negative implications the insurance financial strength rating of A+ for AHL. Other property and casualty companies We have distinct and separately capitalized groups of subsidiaries licensed to sell property and casualty insurance that maintain separate group ratings. The ratings of these groups are influenced by the risks that relate specifically to each group. Many mortgage companies require property owners to have insurance from an insurance carrier with a secure financial strength rating from an accredited rating agency. In August 2024, A.M. Best downgraded the insurance financial strength rating of A- for the members of Allstate New Jersey Group (Allstate New Jersey Insurance Company, Allstate New Jersey Property and Casualty Insurance Company, Encompass Insurance Company of New Jersey, Encompass Property and Casualty Insurance Company of New Jersey and Esurance Insurance Company of New Jersey). The outlook for the rating is negative. ANJ writes auto and homeowners insurance in New Jersey, which has a financial strength rating of A’ from Demotech, that was affirmed in December 2024. In August 2024, A.M. Best affirmed the insurance financial strength rating of A+ for North Light, our excess and surplus lines carrier. The outlook for the rating is stable.In August 2024, A.M. Best affirmed the insurance financial strength ratings of B for the members of Castle Key Group (Castle Key Insurance Company, Castle Key Indemnity Company, Encompass Floridian Insurance Company and Encompass Floridian Indemnity Company). The outlook for the ratings is stable. CKIC also has a financial strength rating of A’ from Demotech that was affirmed in December 2024. ANJ and North Light do not have support agreements with AIC.Allstate’s domestic property and casualty and life insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Statutory surplus is a measure that is often used as a basis for determining dividend paying capacity, operating leverage and premium growth capacity, and it is also reviewed by rating agencies in determining their ratings.The property and casualty business is comprised of 59 insurance companies as of December 31, 2024, each of which has individual company dividend limitations. As of December 31, 2024, total statutory surplus is $18.64 billion compared to $14.56 billion as of December 31, 2023. Property and casualty subsidiaries surplus was $18.24 billion as of December 31, 2024, compared to $14.25 billion as of December 31, 2023. Our three life, accident and health insurance subsidiaries had surplus of $392 million as of December 31, 2024, compared to $310 million as of December 31, 2023.The NAIC has developed financial relationships or tests known as the Insurance Regulatory Information System to assist state insurance regulators in monitoring the financial condition of insurance companies and identifying companies that require special attention or actions by state insurance regulators. The NAIC analyzes financial data provided by insurance companies using prescribed ratios, each with defined “usual ranges”. Additional regulatory scrutiny may occur if a company’s ratios fall outside the usual ranges for four or more of the ratios. Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage. The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies. These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock.The Allstate Corporation (the “Corporation”) and Allstate Insurance Company (“AIC”) In May 2024, S&P affirmed the Corporation’s senior debt and short-term issuer ratings of BBB+ and A-2, respectively, and AIC’s insurance financial strength rating of A+. The outlook for the ratings is stable.In August 2024, A.M. Best affirmed the Corporation’s senior debt and short-term issuer ratings of a- and AMB-1, respectively, and AIC’s insurance financial strength rating of A+. The outlook for the ratings is stable.In October 2024, Moody’s affirmed the Corporation’s senior debt and short-term issuer ratings of A3 and P-2, respectively, and AIC’s insurance financial strength rating of Aa3. The outlook for the ratings is negative.American Heritage Life (“AHL”) In August 2024, subsequent to the announcement of the pending sale of the employer voluntary benefits business, A.M. Best placed under review with negative implications the insurance financial strength rating of A+ for AHL. Other property and casualty companies We have distinct and separately capitalized groups of subsidiaries licensed to sell property and casualty insurance that maintain separate group ratings. The ratings of these groups are influenced by the risks that relate specifically to each group. Many mortgage companies require property owners to have insurance from an insurance carrier with a secure financial strength rating from an accredited rating agency. In August 2024, A.M. Best downgraded the insurance financial strength rating of A- for the members of Allstate New Jersey Group (Allstate New Jersey Insurance Company, Allstate New Jersey Property and Casualty Insurance Company, Encompass Insurance Company of New Jersey, Encompass Property and Casualty Insurance Company of New Jersey and Esurance Insurance Company of New Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, overall portfolio mix, financial leverage (i.e., debt), exposure to risks such as catastrophes and the current level of operating leverage. The preferred stock and subordinated debentures are viewed as having a common equity component by certain rating agencies and are given equity credit up to a pre-determined limit in our capital structure as determined by their respective methodologies. These respective methodologies consider the existence of certain terms and features in the instruments such as the noncumulative dividend feature in the preferred stock. The Allstate Corporation (the “Corporation”) and Allstate Insurance Company (“AIC”) In May 2024, S&P affirmed the Corporation’s senior debt and short-term issuer ratings of BBB+ and A-2, respectively, and AIC’s insurance financial strength rating of A+. The outlook for the ratings is stable. In August 2024, A.M. Best affirmed the Corporation’s senior debt and short-term issuer ratings of a- and AMB-1, respectively, and AIC’s insurance financial strength rating of A+. The outlook for the ratings is stable. In October 2024, Moody’s affirmed the Corporation’s senior debt and short-term issuer ratings of A3 and P-2, respectively, and AIC’s insurance financial strength rating of Aa3. The outlook for the ratings is negative. American Heritage Life (“AHL”) In August 2024, subsequent to the announcement of the pending sale of the employer voluntary benefits business, A.M. Best placed under review with negative implications the insurance financial strength rating of A+ for AHL. Other property and casualty companies We have distinct and separately capitalized groups of subsidiaries licensed to sell property and casualty insurance that maintain separate group ratings. The ratings of these groups are influenced by the risks that relate specifically to each group. Many mortgage companies require property owners to have insurance from an insurance carrier with a secure financial strength rating from an accredited rating agency. In August 2024, A.M. Best downgraded the insurance financial strength rating of A- for the members of Allstate New Jersey Group (Allstate New Jersey Insurance Company, Allstate New Jersey Property and Casualty Insurance Company, Encompass Insurance Company of New Jersey, Encompass Property and Casualty Insurance Company of New Jersey and Esurance Insurance Company of New Jersey). The outlook for the rating is negative. ANJ writes auto and homeowners insurance in New Jersey, which has a financial strength rating of A’ from Demotech, that was affirmed in December 2024. In August 2024, A.M. Best affirmed the insurance financial strength rating of A+ for North Light, our excess and surplus lines carrier. The outlook for the rating is stable.In August 2024, A.M. Best affirmed the insurance financial strength ratings of B for the members of Castle Key Group (Castle Key Insurance Company, Castle Key Indemnity Company, Encompass Floridian Insurance Company and Encompass Floridian Indemnity Company). The outlook for the ratings is stable. CKIC also has a financial strength rating of A’ from Demotech that was affirmed in December 2024. ANJ and North Light do not have support agreements with AIC.Allstate’s domestic property and casualty and life insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Statutory surplus is a measure that is often used as a basis for determining dividend paying capacity, operating leverage and premium growth capacity, and it is also reviewed by rating agencies in determining their ratings.The property and casualty business is comprised of 59 insurance companies as of December 31, 2024, each of which has individual company dividend limitations. As of December 31, 2024, total statutory surplus is $18.64 billion compared to $14.56 billion as of December 31, 2023. Property and casualty subsidiaries surplus was $18.24 billion as of December 31, 2024, compared to $14.25 billion as of December 31, 2023. Our three life, accident and health insurance subsidiaries had surplus of $392 million as of December 31, 2024, compared to $310 million as of December 31, 2023.The NAIC has developed financial relationships or tests known as the Insurance Regulatory Information System to assist state insurance regulators in monitoring the financial condition of insurance companies and identifying companies that require special attention or actions by state insurance regulators. The NAIC analyzes financial data provided by insurance companies using prescribed ratios, each with defined “usual ranges”. Additional regulatory scrutiny may occur if a company’s ratios fall outside the usual ranges for four or more of the ratios. Jersey). The outlook for the rating is negative. ANJ writes auto and homeowners insurance in New Jersey, which has a financial strength rating of A’ from Demotech, that was affirmed in December 2024. In August 2024, A.M. Best affirmed the insurance financial strength rating of A+ for North Light, our excess and surplus lines carrier. The outlook for the rating is stable. In August 2024, A.M. Best affirmed the insurance financial strength ratings of B for the members of Castle Key Group (Castle Key Insurance Company, Castle Key Indemnity Company, Encompass Floridian Insurance Company and Encompass Floridian Indemnity Company). The outlook for the ratings is stable. CKIC also has a financial strength rating of A’ from Demotech that was affirmed in December 2024. ANJ and North Light do not have support agreements with AIC. Allstate’s domestic property and casualty and life insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Statutory surplus is a measure that is often used as a basis for determining dividend paying capacity, operating leverage and premium growth capacity, and it is also reviewed by rating agencies in determining their ratings. The property and casualty business is comprised of 59 insurance companies as of December 31, 2024, each of which has individual company dividend limitations. As of December 31, 2024, total statutory surplus is $18.64 billion compared to $14.56 billion as of December 31, 2023. Property and casualty subsidiaries surplus was $18.24 billion as of December 31, 2024, compared to $14.25 billion as of December 31, 2023. Our three life, accident and health insurance subsidiaries had surplus of $392 million as of December 31, 2024, compared to $310 million as of December 31, 2023. The NAIC has developed financial relationships or tests known as the Insurance Regulatory Information System to assist state insurance regulators in monitoring the financial condition of insurance companies and identifying companies that require special attention or actions by state insurance regulators. The NAIC analyzes financial data provided by insurance companies using prescribed ratios, each with defined “usual ranges”. Additional regulatory scrutiny may occur if a company’s ratios fall outside the usual ranges for four or more of the ratios. 74 www.allstate.com 74 www.allstate.com 74 www.allstate.com 2024 Form 10-K Capital Resources and Liquidity 2024 Form 10-K Capital Resources and Liquidity Liquidity sources and uses Our potential sources and uses of funds principally include the following activities below. Activities for potential sources of fundsProperty-LiabilityProtection ServicesAllstate Health and BenefitsCorporateand OtherReceipt of insurance premiumsüüüRecurring service feesüüüContractholder fund depositsüReinsurance and indemnification program recoveriesüüüReceipts of principal, interest and dividends on investmentsüüüüSales of investmentsüüüüFunds from securities lending, commercial paper and line of credit agreementsüüIntercompany loansüüüüCapital contributions from parent (1)üüüüDividends or return of capital from subsidiariesüüüüTax refunds/settlementsüüüüFunds from periodic issuance of additional securitiesüReceipt of intercompany settlements related to employee benefit plansüFunds from dispositionsü"
    },
    {
      "status": "ADDED",
      "current_title": "Activities for potential sources of funds",
      "prior_title": null,
      "current_body": "Property- Liability Corporate and Other Capital contributions from parent (1) Funds from dispositions ü"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Israel/Hamas Conflict",
      "prior_body": "As of December 31, 2023, we have approximately $47 million investment exposure in the Middle East, of which approximately $43 million is held in Israel, which is primarily indirect exposure through funds managed by external asset managers."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Russia/Ukraine Conflict",
      "prior_body": "The Russia-Ukraine war and related sanctions imposed as a result of this conflict have increased global economic and political uncertainty, including inflationary pressures and an increased risk of cybersecurity incidents. Allstate does not have operations or direct investments in Russia, Belarus or Ukraine, but we could experience significant indirect impacts on the investment portfolio, financial position, or results of operations."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Execute Transformative Growth",
      "prior_body": "Allstate made substantial progress in advancing Transformative Growth in 2023, including continued cost reductions, deploying a new property-liability technology platform and a new Affordable, Simple and Connected auto insurance offering in seven states. National General is building a strong competitive position in independent agent distribution. Build a digital enterprise by expanding utilization of machine-based learning and artificial intelligence. (1)2024 operating priorities will remain mostly consistent with the 2023 priorities. The Allstate Corporation 37 The Allstate Corporation 37 The Allstate Corporation 37 2023 Form 10-K 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Total revenue",
      "prior_body": "Total revenue increased 11.1% to $57.09 billion in 2023 compared to 2022, primarily due to a 10.4% increase in property and casualty insurance premiums earned and net gains on equity valuations in 2023 compared to losses in 2022. Total revenue increased 11.1% to $57.09 billion in 2023 compared to 2022, primarily due to a 10.4% increase in property and casualty insurance premiums earned and net gains on equity valuations in 2023 compared to losses in 2022. Total revenue increased 11.1% to $57.09 billion in 2023 compared to 2022, primarily due to a 10.4% increase in property and casualty insurance premiums earned and net gains on equity valuations in 2023 compared to losses in 2022. Total revenue increased 11.1% to $57.09 billion in 2023 compared to 2022, primarily due to a 10.4% increase in property and casualty insurance premiums earned and net gains on equity valuations in 2023 compared to losses in 2022. Net investment income($ in millions)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Net investment income",
      "prior_body": "Net investment income increased $75 million to $2.48 billion in 2023 compared to 2022, primarily due to higher market-based income reflecting increased fixed income portfolio yields and investment balances, partially offset by lower performance-based investment results. Net investment income increased $75 million to $2.48 billion in 2023 compared to 2022, primarily due to higher market-based income reflecting increased fixed income portfolio yields and investment balances, partially offset by lower performance-based investment results. Net investment income increased $75 million to $2.48 billion in 2023 compared to 2022, primarily due to higher market-based income reflecting increased fixed income portfolio yields and investment balances, partially offset by lower performance-based investment results. Net investment income increased $75 million to $2.48 billion in 2023 compared to 2022, primarily due to higher market-based income reflecting increased fixed income portfolio yields and investment balances, partially offset by lower performance-based investment results. 38 www.allstate.com 38 www.allstate.com 38 www.allstate.com 2023 Form 10-K 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Income Taxes",
      "prior_body": "The effective tax rate is the ratio of income tax (benefit) expense divided by (loss) income from operations before income tax expense. The effective tax rate for 2023 was 38.8% compared to 26.7% in 2022 due to the total income tax benefit measured against a lower loss from operations before income tax expense of $348 million in 2023 compared to a loss of $1.83 billion in 2022. In both years, the effective tax rate was higher than the 21% federal statutory income tax rate, primarily due to tax credits, tax-exempt interest income and excess tax benefits on shared-based payments, offset by a change in valuation allowance and uncertain tax positions. In addition, in 2023, the Company recorded an additional tax benefit arising from the liquidation of a foreign subsidiary and the remeasurement of state deferred income taxes. The The Allstate Corporation 39 The Allstate Corporation 39 The Allstate Corporation 39 2023 Form 10-K 2023 Form 10-K impact of the state deferred income taxes was not material to the consolidated results of operations but resulted in a tax expense to Protection Services and a tax benefit to Allstate Protection. For additional information, see Note 16 of the consolidated financial statements.Financial HighlightsInvestments totaled $66.68 billion as of December 31, 2023, increasing from $61.83 billion as of December 31, 2022.Allstate shareholders’ equity was $17.77 billion as of December 31, 2023 and $17.49 billion as of December 31, 2022. The increase is primarily due to lower unrealized net capital losses on investments, partially offset by dividends paid to shareholders, common share repurchases and a net loss.Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $59.39 as of December 31, 2023, an increase of 2.2% from $58.12 as of December 31, 2022.Return on average common Allstate shareholders’ equity For the twelve months ended December 31, 2023, return on Allstate common shareholders’ equity was (2.0)%, an increase of 5.2 points from (7.2)% for the twelve months ended December 31, 2022, primarily due to lower net loss applicable to common shareholders.Pension and other postretirement remeasurement gains and losses We recorded pension and other postretirement remeasurement losses of $9 million in 2023, primarily related to losses on the remeasurement of the projected benefit obligation driven by a decrease in the liability discount rate, partially offset by gains due to favorable asset performance compared to expected return on plan assets. See Note 18 of the consolidated financial statements and Application of Critical Accounting Estimates section of the MD&A for further information.Adopted accounting standardAccounting for Long-Duration Insurance Contracts Effective January 1, 2023, the Company adopted the Financial Accounting Standards Board (”FASB”) guidance revising the accounting for certain long-duration insurance contracts using the modified retrospective approach to the transition date of January 1, 2021.Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy lapses, are required to be reviewed at least annually, and updated as appropriate. In addition, reserves under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield that is updated through other comprehensive income (“OCI”) at each reporting date. Additionally, deferred policy acquisition costs (“DAC”) for all long-duration products are amortized on a simplified basis. Also, the Company’s reserve for future policy benefits and DAC are subject to new disclosure guidance.In addition, the Company met the conditions included in Accounting Standards Update No. 2022-05, Transition for Sold Contracts, and elected to not apply the new guidance for contracts that were part of the 2021 sales of Allstate Life Insurance Company (“ALIC”) and Allstate Life Insurance Company of New York (“ALNY”).After-tax cumulative effect of change in accounting principle on transition date($ in millions)January 1, 2021Decrease in retained income$21 Decrease in accumulated other comprehensive income (“AOCI”)277 Total decrease in equity$298 The decrease in AOCI was primarily attributable to a change in the discount rate used in measuring the reserve for future policy benefits for traditional life contracts and other long-term products with guaranteed terms from a portfolio-based rate at contract issuance to an upper-medium grade fixed income-based rate at the transition date. The decrease in retained income primarily related to certain cohorts of long-term contracts whose expected net premiums exceeded expected gross premiums which resulted in an increase in reserves and a decrease in retained income equal to the present value of expected future benefits less the present value of expected future premiums at the transition date. impact of the state deferred income taxes was not material to the consolidated results of operations but resulted in a tax expense to Protection Services and a tax benefit to Allstate Protection. For additional information, see Note 16 of the consolidated financial statements.Financial HighlightsInvestments totaled $66.68 billion as of December 31, 2023, increasing from $61.83 billion as of December 31, 2022.Allstate shareholders’ equity was $17.77 billion as of December 31, 2023 and $17.49 billion as of December 31, 2022. The increase is primarily due to lower unrealized net capital losses on investments, partially offset by dividends paid to shareholders, common share repurchases and a net loss.Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $59.39 as of December 31, 2023, an increase of 2.2% from $58.12 as of December 31, 2022.Return on average common Allstate shareholders’ equity For the twelve months ended December 31, 2023, return on Allstate common shareholders’ equity was (2.0)%, an increase of 5.2 points from (7.2)% for the twelve months ended December 31, 2022, primarily due to lower net loss applicable to common shareholders.Pension and other postretirement remeasurement gains and losses We recorded pension and other postretirement remeasurement losses of $9 million in 2023, primarily related to losses on the remeasurement of the projected benefit obligation driven by a decrease in the liability discount rate, partially offset by gains due to favorable asset performance compared to expected return on plan assets. See Note 18 of the consolidated financial statements and Application of Critical Accounting Estimates section of the MD&A for further information.Adopted accounting standardAccounting for Long-Duration Insurance Contracts Effective January 1, 2023, the Company adopted the Financial Accounting Standards Board (”FASB”) guidance revising the accounting for certain long-duration insurance contracts using the modified retrospective approach to the transition date of January 1, 2021. impact of the state deferred income taxes was not material to the consolidated results of operations but resulted in a tax expense to Protection Services and a tax benefit to Allstate Protection. For additional information, see Note 16 of the consolidated financial statements."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Adopted accounting standard",
      "prior_body": "Accounting for Long-Duration Insurance Contracts Effective January 1, 2023, the Company adopted the Financial Accounting Standards Board (”FASB”) guidance revising the accounting for certain long-duration insurance contracts using the modified retrospective approach to the transition date of January 1, 2021. Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy lapses, are required to be reviewed at least annually, and updated as appropriate. In addition, reserves under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield that is updated through other comprehensive income (“OCI”) at each reporting date. Additionally, deferred policy acquisition costs (“DAC”) for all long-duration products are amortized on a simplified basis. Also, the Company’s reserve for future policy benefits and DAC are subject to new disclosure guidance.In addition, the Company met the conditions included in Accounting Standards Update No. 2022-05, Transition for Sold Contracts, and elected to not apply the new guidance for contracts that were part of the 2021 sales of Allstate Life Insurance Company (“ALIC”) and Allstate Life Insurance Company of New York (“ALNY”).After-tax cumulative effect of change in accounting principle on transition date($ in millions)January 1, 2021Decrease in retained income$21 Decrease in accumulated other comprehensive income (“AOCI”)277 Total decrease in equity$298 The decrease in AOCI was primarily attributable to a change in the discount rate used in measuring the reserve for future policy benefits for traditional life contracts and other long-term products with guaranteed terms from a portfolio-based rate at contract issuance to an upper-medium grade fixed income-based rate at the transition date. The decrease in retained income primarily related to certain cohorts of long-term contracts whose expected net premiums exceeded expected gross premiums which resulted in an increase in reserves and a decrease in retained income equal to the present value of expected future benefits less the present value of expected future premiums at the transition date. Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy lapses, are required to be reviewed at least annually, and updated as appropriate. In addition, reserves under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield that is updated through other comprehensive income (“OCI”) at each reporting date. Additionally, deferred policy acquisition costs (“DAC”) for all long-duration products are amortized on a simplified basis. Also, the Company’s reserve for future policy benefits and DAC are subject to new disclosure guidance. In addition, the Company met the conditions included in Accounting Standards Update No. 2022-05, Transition for Sold Contracts, and elected to not apply the new guidance for contracts that were part of the 2021 sales of Allstate Life Insurance Company (“ALIC”) and Allstate Life Insurance Company of New York (“ALNY”). After-tax cumulative effect of change in accounting principle on transition date($ in millions)January 1, 2021Decrease in retained income$21 Decrease in accumulated other comprehensive income (“AOCI”)277 Total decrease in equity$298"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "After-tax cumulative effect of change in accounting principle on transition date",
      "prior_body": "The decrease in AOCI was primarily attributable to a change in the discount rate used in measuring the reserve for future policy benefits for traditional life contracts and other long-term products with guaranteed terms from a portfolio-based rate at contract issuance to an upper-medium grade fixed income-based rate at the transition date. The decrease in retained income primarily related to certain cohorts of long-term contracts whose expected net premiums exceeded expected gross premiums which resulted in an increase in reserves and a decrease in retained income equal to the present value of expected future benefits less the present value of expected future premiums at the transition date. 40 www.allstate.com 40 www.allstate.com 40 www.allstate.com 2023 Form 10-K Property-Liability 2023 Form 10-K Property-Liability"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Total premiums earned",
      "prior_body": "44 www.allstate.com 44 www.allstate.com 44 www.allstate.com 2023 Form 10-K Allstate Protection 2023 Form 10-K Allstate Protection Unearned premium balance by line of business($ in millions)As of December 31,20232022Allstate brand:Auto$7,569 $7,039 Homeowners6,187 5,495 Other personal lines 1,264 1,151 Commercial lines194 314 Total Allstate brand15,214 13,999 National General:Auto2,547 2,017 Homeowners799 651 Other personal lines69 62 Commercial lines155 129 Other business lines317 294 Total National General3,887 3,153 Allstate Protection unearned premiums$19,101 $17,152"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Unearned premium balance by line of business",
      "prior_body": "Other business lines Policies in force by brand and by line of businessAllstate brandNational GeneralAllstate ProtectionPIF (thousands)202320222021202320222021202320222021Auto20,326 21,658 21,972 4,957 4,376 3,944 25,283 26,034 25,916 Homeowners6,652 6,622 6,525 686 638 634 7,338 7,260 7,159 Other personal lines4,522 4,636 4,578 341 300 288 4,863 4,936 4,866 Commercial lines152 204 210 132 107 105 284 311 315 Total 31,652 33,120 33,285 6,116 5,421 4,971 37,768 38,541 38,256 Auto insurance premiums written increased 10.7% or $3.29 billion in 2023 compared to 2022, primarily due to the following factors:•Increased average premiums driven by 2022 and 2023 rate increases. In the year ended December 31, 2023: –Rate increases of 17.9% were taken for Allstate brand in 55 locations, resulting in total Allstate brand insurance premium impact of 16.4%–Rate increases of 18.8% were taken for National General brand in 48 locations, resulting in total National General brand insurance premium impact of 12.8%•We expect to continue to pursue rate increases for both Allstate and National General brands into 2024 to improve auto insurance profitability•PIF decreased 2.9% or 751 thousand to 25,283 thousand as of December 31, 2023 compared to December 31, 2022•Renewal ratio decreased 1.6 points as of December 31, 2023 compared to December 31, 2022•Decreased new issued applications driven by the direct and exclusive agency channels, partially offset by growth in the independent agency channel•The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth Auto insurance premiums written increased 10.7% or $3.29 billion in 2023 compared to 2022, primarily due to the following factors:•Increased average premiums driven by 2022 and 2023 rate increases. In the year ended December 31, 2023: –Rate increases of 17.9% were taken for Allstate brand in 55 locations, resulting in total Allstate brand insurance premium impact of 16.4%–Rate increases of 18.8% were taken for National General brand in 48 locations, resulting in total National General brand insurance premium impact of 12.8%•We expect to continue to pursue rate increases for both Allstate and National General brands into 2024 to improve auto insurance profitability Auto insurance premiums written increased 10.7% or $3.29 billion in 2023 compared to 2022, primarily due to the following factors: •Increased average premiums driven by 2022 and 2023 rate increases. In the year ended December 31, 2023: –Rate increases of 17.9% were taken for Allstate brand in 55 locations, resulting in total Allstate brand insurance premium impact of 16.4% –Rate increases of 18.8% were taken for National General brand in 48 locations, resulting in total National General brand insurance premium impact of 12.8% •We expect to continue to pursue rate increases for both Allstate and National General brands into 2024 to improve auto insurance profitability •PIF decreased 2.9% or 751 thousand to 25,283 thousand as of December 31, 2023 compared to December 31, 2022•Renewal ratio decreased 1.6 points as of December 31, 2023 compared to December 31, 2022•Decreased new issued applications driven by the direct and exclusive agency channels, partially offset by growth in the independent agency channel•The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth •PIF decreased 2.9% or 751 thousand to 25,283 thousand as of December 31, 2023 compared to December 31, 2022 •Renewal ratio decreased 1.6 points as of December 31, 2023 compared to December 31, 2022 •Decreased new issued applications driven by the direct and exclusive agency channels, partially offset by growth in the independent agency channel •The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth Auto premium measures and statistics2023202220212023 vs. 20222022 vs. 2021New issued applications (thousands)Allstate Protection by brandAllstate brand2,915 3,644 3,616 (20.0)%0.8 %National General3,000 2,677 2,057 12.1 %30.1 %Total new issued applications5,915 6,321 5,673 (6.4)%11.4 %Allstate Protection by channelExclusive agency channel 2,294 2,401 2,387 (4.5)%0.6 %Direct channel1,632 2,202 1,773 (25.9)%24.2 %Independent agency channel1,989 1,718 1,513 15.8 %13.5 %Total new issued applications5,915 6,321 5,673 (6.4)%11.4 %Allstate brand average premium$757 $659 $605 14.9 %8.9 %Allstate brand renewal ratio (%) 85.4 87.0 87.0 (1.6)—"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "2022 vs. 2021",
      "prior_body": "Exclusive agency channel The Allstate Corporation 45 The Allstate Corporation 45 The Allstate Corporation 45 2023 Form 10-K Allstate Protection 2023 Form 10-K Allstate Protection Homeowners insurance premiums written increased 12.3% or $1.38 billion in 2023 compared to 2022, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases taken in 2022 and 2023 and inflation in insured home replacement costs, combined with policies in force growth•In 2023 rate increases of 15.0% were taken for Allstate brand in 49 locations, resulting in total Allstate brand insurance premium impact of 11.3%•National General policy growth may be negatively impacted in future quarters as we improve underwriting margins to targeted levels in the current books of business through underwriting and rate actions. In 2023 rate increases of 23.4% were taken for National General brand in 32 locations, resulting in total National General brand insurance premium impact of 11.0%•Decreased new issued applications in the direct and exclusive agency channels, partially offset by growth in the independent agency channel•Policy growth is being reduced in states and lines of business that are underperforming. We are no longer writing new homeowners business in California and Florida, and we are non-renewing certain policies in Florida to reduce our exposure, which have and will continue to negatively impact premiums•The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth Homeowners insurance premiums written increased 12.3% or $1.38 billion in 2023 compared to 2022, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases taken in 2022 and 2023 and inflation in insured home replacement costs, combined with policies in force growth•In 2023 rate increases of 15.0% were taken for Allstate brand in 49 locations, resulting in total Allstate brand insurance premium impact of 11.3%•National General policy growth may be negatively impacted in future quarters as we improve underwriting margins to targeted levels in the current books of business through underwriting and rate actions. In 2023 rate increases of 23.4% were taken for National General brand in 32 locations, resulting in total National General brand insurance premium impact of 11.0% Homeowners insurance premiums written increased 12.3% or $1.38 billion in 2023 compared to 2022, primarily due to the following factors: •Higher Allstate brand average premiums from implemented rate increases taken in 2022 and 2023 and inflation in insured home replacement costs, combined with policies in force growth •In 2023 rate increases of 15.0% were taken for Allstate brand in 49 locations, resulting in total Allstate brand insurance premium impact of 11.3% •National General policy growth may be negatively impacted in future quarters as we improve underwriting margins to targeted levels in the current books of business through underwriting and rate actions. In 2023 rate increases of 23.4% were taken for National General brand in 32 locations, resulting in total National General brand insurance premium impact of 11.0% •Decreased new issued applications in the direct and exclusive agency channels, partially offset by growth in the independent agency channel•Policy growth is being reduced in states and lines of business that are underperforming. We are no longer writing new homeowners business in California and Florida, and we are non-renewing certain policies in Florida to reduce our exposure, which have and will continue to negatively impact premiums•The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth •Decreased new issued applications in the direct and exclusive agency channels, partially offset by growth in the independent agency channel •Policy growth is being reduced in states and lines of business that are underperforming. We are no longer writing new homeowners business in California and Florida, and we are non-renewing certain policies in Florida to reduce our exposure, which have and will continue to negatively impact premiums •The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth Homeowners premium measures and statistics2023202220212023 vs. 20222022 vs. 2021New issued applications (thousands) Allstate Protection by brandAllstate brand934 986 962 (5.3)%2.5 %National General177 136 102 30.1 %33.3 %Total new issued applications1,111 1,122 1,064 (1.0)%5.5 %Allstate Protection by channelExclusive agency channel800 826 840 (3.1)%(1.7)%Direct channel79 94 84 (16.0)%11.9 %Independent agency channel232 202 140 14.9 %44.3 %Total new issued applications 1,111 1,122 1,064 (1.0)%5.5 %Allstate brand average premium$1,812 $1,614 $1,426 12.3 %13.2 %Allstate brand renewal ratio (%) 86.7 86.8 87.1 (0.1)(0.3)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "For the year ended December 31, 2023",
      "prior_body": "Gross claim frequency decreased in 2023 compared to 2022 primarily due to fire and water perils. Paid claim severity increased in 2023 compared to 2022 due to inflationary loss cost pressure driven by increases in labor and materials costs. Homeowner paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the period. Other personal lines loss ratio increased 2.3 points in 2023 compared to 2022, primarily due to higher catastrophe losses and increased severity, partially offset by increased premiums earned. Commercial lines loss ratio decreased 14.9 points in 2023 compared to 2022 primarily due to the result of profitability actions taken and lower unfavorable reserve reestimates, partially offset by continued elevated frequency and severity. Other business lines loss ratio increased 8.9 points in 2023 compared to 2022 primarily due to higher non-catastrophe losses and unfavorable prior year reserve reestimates.Catastrophe losses increased 81.1% or $2.52 billion in 2023 compared to 2022 primarily related to an increased number of wind/hail events and larger losses per event.Reinsurance recoveries in 2021 related to the Nationwide Aggregate Reinsurance Program for aggregate catastrophe losses occurring between April 1, 2020 and December 31, 2020, which primarily impacted homeowners prior year reserve reestimates.We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes. We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. Other business lines loss ratio increased 8.9 points in 2023 compared to 2022 primarily due to higher non-catastrophe losses and unfavorable prior year reserve reestimates. Catastrophe losses increased 81.1% or $2.52 billion in 2023 compared to 2022 primarily related to an increased number of wind/hail events and larger losses per event. Reinsurance recoveries in 2021 related to the Nationwide Aggregate Reinsurance Program for aggregate catastrophe losses occurring between April 1, 2020 and December 31, 2020, which primarily impacted homeowners prior year reserve reestimates. We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes. We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. Catastrophe losses by the type of eventFor the years ended December 31,($ in millions)Number of events2023Number of events2022Number of events2021Hurricanes/tropical storms3 $66 2 $399 6 $742 Tornadoes4 189 4 192 3 107 Wind/hail136 5,065 106 1,936 85 1,878 Wildfires4 335 9 52 5 269 Freeze/other events2 5 3 515 2 611 Prior year reserve reestimates(24)28 35 Prior year aggregate reinsurance recoveries — (10)(237)Current year aggregate reinsurance recoveries— — (66)Total catastrophe losses (1)149 $5,636 124 $3,112 101 $3,339"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Total catastrophe losses (1)",
      "prior_body": "(1)2021 includes approximately $250 million of reinstatement premiums for the year ended December 31, 2021, related to the Nationwide Catastrophe Reinsurance Program, primarily due to Hurricane Ida."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Allstate Protection",
      "prior_body": "The tables below show Allstate Protection net reserves representing the estimated cost of outstanding claims as they were recorded at the beginning of years 2023, 2022, and 2021, and the effect of reestimates in each year. Net reserves by lineJanuary 1 reserves($ in millions)202320222021Auto (1)$19,365 $16,078 $14,164 Homeowners (1)3,520 2,731 2,315 Other personal lines1,653 1,844 1,463 Commercial lines and other (2)2,338 1,471 1,194 Total Allstate Protection$26,876 $22,124 $19,136"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Net reserves by line",
      "prior_body": "Auto (1) Homeowners (1) Commercial lines and other (2) (1)2022 includes a $944 million reclassification of reserves from homeowners to auto. (2)2023 and 2022 include the unamortized fair value adjustment related to the acquisition of National General. Impact of reserve reestimates by line on combined ratio and underwriting income202320222021($ in millions, except ratios)Reserve reestimatesEffect on combined ratioReserve reestimatesEffect on combined ratioReserve reestimatesEffect on combined ratioAuto$244 0.5 $1,185 2.7 $149 0.4 Homeowners102 0.2 200 0.4 (135)(0.3)Other personal lines19 0.1 (32)(0.1)(107)(0.3)Commercial lines84 0.2 272 0.6 119 0.3 Other business lines12 — (6)— (18)(0.1)Total Allstate Protection$461 1.0 $1,619 3.6 $8 — Underwriting (loss) income$(2,090)$(2,782)$1,785 Reserve reestimates as a % impact on underwriting (loss) income - favorable (unfavorable)(22.1)%(58.2)%(0.4)%"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Impact of reserve reestimates by line on combined ratio and underwriting income",
      "prior_body": "Reserve reestimates as a % impact on underwriting (loss) income - favorable (unfavorable) Unfavorable reserve reestimates in 2023 were primarily due to National General personal auto lines, homeowners and commercial lines.Unfavorable reserve reestimates for personal auto in 2022 were primarily from bodily injury and physical damage coverages. Increases in injury coverages reflected recent data and updated assumptions related to severity of third-party bodily injury claims, Unfavorable reserve reestimates in 2023 were primarily due to National General personal auto lines, homeowners and commercial lines. Unfavorable reserve reestimates in 2023 were primarily due to National General personal auto lines, homeowners and commercial lines. Unfavorable reserve reestimates for personal auto in 2022 were primarily from bodily injury and physical damage coverages. Increases in injury coverages reflected recent data and updated assumptions related to severity of third-party bodily injury claims, Unfavorable reserve reestimates for personal auto in 2022 were primarily from bodily injury and physical damage coverages. Increases in injury coverages reflected recent data and updated assumptions related to severity of third-party bodily injury claims, The Allstate Corporation 57 The Allstate Corporation 57 The Allstate Corporation 57 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves increased claims with attorney representation, litigation costs, increased medical treatment utilization and higher medical inflation. Increases in physical damage reflected the ongoing inflationary factors and supply chain shortages impacting used vehicle and parts prices, labor rates and length of claim resolution. Delays in the receipt of claims, including third-party carrier claims also contributed to the adverse development of claims reported in prior years. Unfavorable reserve reestimates for commercial were primarily from auto injury coverages for both shared economy and traditional segments with a large portion of the traditional segment increase related to states where the Company will no longer be selling new business.Run-off Property-Liability We conduct an annual review in the third quarter of each year to evaluate and establish asbestos, environmental and other run-off reserves. Reserves are recorded in the reporting period in which they are determined. Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on assessments of the characteristics of exposure (e.g. claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by policyholders. increased claims with attorney representation, litigation costs, increased medical treatment utilization and higher medical inflation. Increases in physical damage reflected the ongoing inflationary factors and supply chain shortages impacting used vehicle and parts prices, labor rates and length of claim resolution. Delays in the receipt of claims, including third-party carrier claims also contributed to the adverse development of claims reported in prior years. Unfavorable reserve reestimates for commercial were primarily from auto injury coverages for both shared economy and traditional segments with a large portion of the traditional segment increase related to states where the Company will no longer be selling new business. increased claims with attorney representation, litigation costs, increased medical treatment utilization and higher medical inflation. Increases in physical damage reflected the ongoing inflationary factors and supply chain shortages impacting used vehicle and parts prices, labor rates and length of claim resolution. Delays in the receipt of claims, including third-party carrier claims also contributed to the adverse development of claims reported in prior years. Unfavorable reserve reestimates for commercial were primarily from auto injury coverages for both shared economy and traditional segments with a large portion of the traditional segment increase related to states where the Company will no longer be selling new business. Run-off Property-Liability We conduct an annual review in the third quarter of each year to evaluate and establish asbestos, environmental and other run-off reserves. Reserves are recorded in the reporting period in which they are determined. Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on assessments of the characteristics of exposure (e.g. claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by policyholders."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Protection Services",
      "prior_body": "(1)N/A reflects no S&P Global Ratings (“S&P”) or A.M. Best ratings available. (2)As of December 31, 2023 and 2022, MCCA includes $62 million of reinsurance recoverable on paid claims and $6.36 billion and $6.66 billion of reinsurance recoverable on unpaid claims, respectively. (3)Other reinsurance recoverables primarily relate to commercial lines, including shared economy, as well as asbestos, environmental and other liability exposures. Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation and the Company has not had any credit losses related to these programs and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers.The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $62 million as of December 31, 2023 and 2022.The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation and the Company has not had any credit losses related to these programs and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers.The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $62 million as of December 31, 2023 and 2022.The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation and the Company has not had any credit losses related to these programs and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers. The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $62 million as of December 31, 2023 and 2022. The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of 60 www.allstate.com 60 www.allstate.com 60 www.allstate.com 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables.For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 11 of the consolidated financial statements. business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables.For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 11 of the consolidated financial statements. recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables. For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 11 of the consolidated financial statements. Effects of reinsurance ceded and indemnification programs on our premiums earned and claims and claims expenseFor the years ended December 31,($ in millions)202320222021Allstate Protection - PremiumsIndemnification programsState-based industry pool or facility programsNCRF$323 $300 $310 MCCA29 18 20 PLIGA7 7 7 FHCF28 24 15 Other1 — 420 Federal Government - NFIP327 319 350 Catastrophe reinsurance995 764 541 Other reinsurance programs 110 261 60 Total Allstate Protection1,820 1,693 1,723 Run-off Property-Liability— — — Total Property-Liability1,820 1,693 1,723 Protection Services169 176 181 Total effect on premiums earned$1,989 $1,869 $1,904 Allstate Protection - ClaimsIndemnification programsState-based industry pool or facility programsMCCA$(185)$116 $611 NCRF379 294 279 PLIGA14 (24)— FHCF(6)74 13 Other 1 — 359 Federal Government - NFIP102 435 267 Catastrophe reinsurance 32 298 1,719 Other reinsurance programs151 261 85 Total Allstate Protection488 1,454 3,333 Run-off Property-Liability29 50 60 Total Property-Liability517 1,504 3,393 Protection Services116 96 91 Total effect on claims and claims expense$633 $1,600 $3,484"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Allstate Health and Benefits reinsurance ceded",
      "prior_body": "The vast majority of reinsurance relates to the disposition of long-term care and other closed blocks of business. We retain primary liability as a direct insurer for all risks ceded to reinsurers. Reinsurance recoverables by reinsurer, net S&P financial strength ratingA.M. Best financial strength ratingReinsurance recoverable on paid and unpaid benefitsAs of December 31,($ in millions)20232022Mutual of Omaha InsuranceA+A+$70 $65 Everlake Life Insurance CompanyNRA+33 35 Argo Capital Group Ltd. NRNR24 20 General Re Life CorporationAA+A++15 13 Midlands Casualty Insurance Company NRNR15 16 Other (1)5 6 Credit loss allowance(3)(3)Total$159 $152 Other (1) (1)As of December 31, 2023, the other category includes $4 million and $5 million of recoverables due from reinsurers rated A- or better by S&P and A.M. Best, respectively. As of December 31, 2022, the other category includes $3 million and $4 million of recoverables due from reinsurers rated A- or better by S&P and A.M. Best, respectively. We continuously monitor the creditworthiness of reinsurers in order to determine our risk of recoverability on an individual and aggregate basis. No reinsurance recoverables have been written off in the three-years ended December 31, 2023. 64 www.allstate.com 64 www.allstate.com 64 www.allstate.com 2023 Form 10-K Investments 2023 Form 10-K Investments"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Investments Outlook",
      "prior_body": "We plan to focus on the following priorities: •Enhance investment portfolio returns through use of a dynamic capital allocation framework and focus on tax efficiency. •Leverage our broad capabilities to manage the portfolio to earn higher risk-adjusted returns on capital. •Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile. We utilize our integrated enterprise risk and return management framework to determine the amount of investment risk we are willing to accept. After reducing interest rate risk by shortening the portfolio duration beginning in late 2021, during 2023 we extended the fixed income portfolio duration as the sustained higher market yields provide an opportunity to increase risk-adjusted returns. As recession risks remain elevated, we also retained defensive positioning to equity risk and credit risk in the portfolio through a reduced allocation to public equity, high yield bonds and bank loans. We expect to maintain performance-based investments in our portfolio, consistent with our strategy to have a greater proportion of return derived from idiosyncratic assets or operating performance.Contractual maturities and yields of fixed income securities for the next three yearsFixed income securities($ in millions)Carrying valueInvestment yield2024$3,374 3.0 %20256,288 3.5 20265,565 3.5 market yields provide an opportunity to increase risk-adjusted returns. As recession risks remain elevated, we also retained defensive positioning to equity risk and credit risk in the portfolio through a reduced allocation to public equity, high yield bonds and bank loans. We expect to maintain performance-based investments in our portfolio, consistent with our strategy to have a greater proportion of return derived from idiosyncratic assets or operating performance."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Contractual maturities and yields of fixed income securities for the next three years",
      "prior_body": "Portfolio composition and strategy by reporting segment (1)As of December 31, 2023($ in millions)Property-LiabilityProtection ServicesAllstate Health and Benefits Corporate and OtherTotalFixed income securities (2)$43,466 $1,796 $1,806 $1,797 $48,865 Equity securities (3)1,516 254 44 597 2,411 Mortgage loans, net701 — 121 — 822 Limited partnership interests8,366 — — 14 8,380 Short-term investments (4)4,555 130 92 367 5,144 Other investments, net936 — 119 — 1,055 Total$59,540 $2,180 $2,182 $2,775 $66,677 Percentage to total 89.3 %3.3 %3.3 %4.1 %100.0 %Market-based$50,019 $2,180 $2,182 $2,553 $56,934 Performance-based9,521 — — 222 9,743 Total$59,540 $2,180 $2,182 $2,775 $66,677"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Gross unrealized gains (losses) on fixed income securities by type and sector",
      "prior_body": "Banking (1) (1) As of December 31, 2023, we have exposure of approximately $90 million to regional banks primarily through investment grade corporate bonds. 70 www.allstate.com 70 www.allstate.com 70 www.allstate.com 2023 Form 10-K Investments 2023 Form 10-K Investments Gross unrealized gains (losses) on fixed income securities by type and sectorAs of December 31, 2022Amortized cost, netGross unrealizedFair value($ in millions)GainsLossesCorporateBanking $5,153 $16 $(314)$4,855 Basic industry1,019 2 (75)946 Capital goods2,288 3 (197)2,094 Communications2,422 1 (261)2,162 Consumer goods (cyclical and non-cyclical)5,984 6 (531)5,459 Financial services2,243 4 (176)2,071 Energy2,364 2 (156)2,210 Technology3,137 4 (298)2,843 Transportation959 1 (73)887 Utilities2,633 7 (203)2,437 Other360 — (61)299 Total corporate fixed income portfolio28,562 46 (2,345)26,263 U.S. government and agencies8,123 6 (231)7,898 Municipal6,500 36 (326)6,210 Foreign government997 — (40)957 ABS1,188 4 (35)1,157 Total fixed income securities$45,370 $92 $(2,977)$42,485"
    },
    {
      "status": "MODIFIED",
      "current_title": "Overview and strategy",
      "prior_title": "Overview and strategy",
      "similarity_score": 0.907,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The return on our investment portfolios is an important component of our ability to offer value to customers, fund business improvements and create value for shareholders.\"",
        "Reworded sentence: \"The Property-Liability portfolio emphasizes protection of principal and consistent income generation within a total return framework.\"",
        "Reworded sentence: \"Products with lower liquidity and capital needs, such as auto insurance and run-off lines, create capacity to invest in less liquid higher yielding fixed income securities, performance-based investments such as limited partnerships and equity securities.\"",
        "Reworded sentence: \"The Protection Services portfolio is focused on protection of principal and consistent income generation within a total return framework.\"",
        "Reworded sentence: \"The Allstate Health and Benefits portfolio is focused on protection of principal and consistent income generation within a total return framework.\""
      ],
      "current_body": "The return on our investment portfolios is an important component of our ability to offer value to customers, fund business improvements and create value for shareholders. Investment portfolios are held for Property-Liability, Protection Services, Allstate Health and Benefits and Corporate and Other operations. While taking into consideration the investment portfolio in aggregate, management of the underlying portfolios is significantly influenced by the nature of each respective business and its corresponding liability profile. For each business, we identify a strategic asset allocation which considers both the nature of the liabilities and the risk and return characteristics of the various asset classes in which we invest. This allocation is informed by our long-term business and market expectations, as well as other considerations such as risk appetite, portfolio diversification, duration, desired liquidity and capital. Within appropriate ranges relative to strategic allocations, tactical allocations are made in consideration of prevailing and potential future market conditions. We manage risks that involve uncertainty related to interest rates, inflation, credit spreads, equity returns and currency exchange rates. The Property-Liability portfolio emphasizes protection of principal and consistent income generation within a total return framework. This approach has produced competitive returns over the long term and is designed to ensure financial strength and stability for paying claims, while maximizing economic value and surplus growth. Products with lower liquidity and capital needs, such as auto insurance and run-off lines, create capacity to invest in less liquid higher yielding fixed income securities, performance-based investments such as limited partnerships and equity securities. Products with higher liquidity needs, such as homeowners insurance, are invested primarily in high quality liquid fixed income securities. The Protection Services portfolio is focused on protection of principal and consistent income generation within a total return framework. The portfolio is largely comprised of fixed income securities with a lesser allocation to equity securities and short-term investments. The Allstate Health and Benefits portfolio is focused on protection of principal and consistent income generation within a total return framework. The portfolio is largely comprised of fixed income securities with a small allocation to short-term investments. The Corporate and Other portfolio is primarily focused on liquidity needs and capital preservation within a total return framework. The portfolio is largely comprised of high-quality liquid fixed income securities and short-term investments with a lower allocation to performance-based and equity investments. We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects. As strategies and market conditions evolve, the asset allocation may change.Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk. Consequently, return patterns can be more volatile than the market-based portfolio. Returns are impacted by a variety of factors including general macroeconomic and public market conditions as public benchmarks are often used in the valuation of underlying investments. Variability in earnings will also result from the performance of the underlying assets or business and the timing of sales of those investments. Earnings from the sales of investments may be recorded as net investment income or net gains and losses on investments and derivatives. The portfolio, which primarily includes private equity (including infrastructure investments) and real estate with a majority being limited partnerships, is diversified across a number of characteristics, including managers or partners, vintage years, investment strategies, geographies (including international) and industry sectors or property types. These investments are generally illiquid in nature, often require specialized expertise, typically involve a third-party manager, and enhance returns and income through transformation at the company or property level. A portion of these investments seek returns in markets or asset classes that are dislocated or special situations, primarily in private markets.Investments outlook Our focus is on the following priorities:•Enhance investment portfolio returns through use of a dynamic capital allocation framework and focus on tax efficiency.•Leverage our broad capabilities to manage the portfolio to earn higher risk-adjusted returns on capital.•Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile.We utilize our integrated enterprise risk and return management framework to determine the amount of investment risk we are willing to accept. Beginning in 2023, we extended the fixed income portfolio duration as the sustained higher market yields provided an opportunity to increase risk-adjusted returns. In 2024, we increased public equity securities by $2.05 billion primarily funded through the sale of investment grade corporate bonds and short-term investments. advantage of market opportunities while attempting to mitigate adverse effects. As strategies and market conditions evolve, the asset allocation may change. Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities. Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk. Consequently, return patterns can be more volatile than the market-based portfolio. Returns are impacted by a variety of factors including general macroeconomic and public market conditions as public benchmarks are often used in the valuation of underlying investments. Variability in earnings will also result from the performance of the underlying assets or business and the timing of sales of those investments. Earnings from the sales of investments may be recorded as net investment income or net gains and losses on investments and derivatives. The portfolio, which primarily includes private equity (including infrastructure investments) and real estate with a majority being limited partnerships, is diversified across a number of characteristics, including managers or partners, vintage years, investment strategies, geographies (including international) and industry sectors or property types. These investments are generally illiquid in nature, often require specialized expertise, typically involve a third-party manager, and enhance returns and income through transformation at the company or property level. A portion of these investments seek returns in markets or asset classes that are dislocated or special situations, primarily in private markets.",
      "prior_body": "The return on our investment portfolios is an important component of our ability to offer good value to customers, fund business improvements and create value for shareholders. Investment portfolios are held for Property-Liability, Protection Services, Allstate Health and Benefits and Corporate and Other operations. While taking into consideration the investment portfolio in aggregate, management of the underlying portfolios is significantly influenced by the nature of each respective business and its corresponding liability profile. For each business, we identify a strategic asset allocation which considers both the nature of the liabilities and the risk and return characteristics of the various asset classes in which we invest. This allocation is informed by our long-term business and market expectations, as well as other considerations such as risk appetite, portfolio diversification, duration, desired liquidity and capital. Within appropriate ranges relative to strategic allocations, tactical allocations are made in consideration of prevailing and potential future market conditions. We manage risks that involve uncertainty related to interest rates, inflation, credit spreads, equity returns and currency exchange rates. The Property-Liability portfolio emphasizes protection of principal and consistent income generation, within a total return framework. This approach has produced competitive returns over the long term and is designed to ensure financial strength and stability for paying claims, while maximizing economic value and surplus growth. Products with lower liquidity needs, such as auto insurance and run-off lines, and capital create capacity to invest in less liquid higher yielding fixed income securities, performance-based investments such as limited partnerships and equity securities. Products with higher liquidity needs, such as homeowners insurance, are invested primarily in high quality liquid fixed income securities. The Protection Services portfolio is focused on protection of principal and consistent income generation, within a total return framework. The portfolio is largely comprised of fixed income securities with a lesser allocation to equity securities and short-term investments. The Allstate Health and Benefits portfolio is focused on protection of principal and consistent income generation while targeting an appropriate return on capital. The portfolio is largely comprised of fixed income securities with a small allocation to commercial mortgage loans and equity securities. The Corporate and Other portfolio is focused on liquidity needs and capital preservation within a total return framework. The portfolio is largely comprised of high-quality liquid fixed income securities and short-term investments. We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects. As strategies and market conditions evolve, the asset allocation may change.Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk. Returns are impacted by a variety of factors including general macroeconomic and public market conditions as public benchmarks are often used in the valuation of underlying investments. Variability in earnings will also result from the performance of the underlying assets or business and the timing of sales of those investments. Earnings from the sales of investments may be recorded as net investment income or net gains and losses on investments and derivatives. The portfolio, which primarily includes private equity (including infrastructure investments) and real estate with a majority being limited partnerships, is diversified across a number of characteristics, including managers or partners, vintage years, investment strategies, geographies (including international) and industry sectors or property types. These investments are generally illiquid in nature, often require specialized expertise, typically involve a third-party manager, and enhance returns and income through transformation at the company or property level. A portion of these investments seek returns in markets or asset classes that are dislocated or special situations, primarily in private markets.Investments in the Middle East As of December 31, 2023, we have approximately $47 million investment exposure in the Middle East, of which approximately $43 million is held in Israel, which is primarily indirect exposure through funds managed by external asset managers. Investments in Russia and Ukraine As of December 31, 2023, we do not have any direct or indirect investments in Russia, Belarus or Ukraine. We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects. As strategies and market conditions evolve, the asset allocation may change. Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities. Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk. Returns are impacted by a variety of factors including general macroeconomic and public market conditions as public benchmarks are often used in the valuation of underlying investments. Variability in earnings will also result from the performance of the underlying assets or business and the timing of sales of those investments. Earnings from the sales of investments may be recorded as net investment income or net gains and losses on investments and derivatives. The portfolio, which primarily includes private equity (including infrastructure investments) and real estate with a majority being limited partnerships, is diversified across a number of characteristics, including managers or partners, vintage years, investment strategies, geographies (including international) and industry sectors or property types. These investments are generally illiquid in nature, often require specialized expertise, typically involve a third-party manager, and enhance returns and income through transformation at the company or property level. A portion of these investments seek returns in markets or asset classes that are dislocated or special situations, primarily in private markets. Investments in the Middle East As of December 31, 2023, we have approximately $47 million investment exposure in the Middle East, of which approximately $43 million is held in Israel, which is primarily indirect exposure through funds managed by external asset managers. Investments in Russia and Ukraine As of December 31, 2023, we do not have any direct or indirect investments in Russia, Belarus or Ukraine. The Allstate Corporation 65 The Allstate Corporation 65 The Allstate Corporation 65 2023 Form 10-K Investments 2023 Form 10-K Investments Investments Outlook We plan to focus on the following priorities:•Enhance investment portfolio returns through use of a dynamic capital allocation framework and focus on tax efficiency.•Leverage our broad capabilities to manage the portfolio to earn higher risk-adjusted returns on capital.•Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile.We utilize our integrated enterprise risk and return management framework to determine the amount of investment risk we are willing to accept. After reducing interest rate risk by shortening the portfolio duration beginning in late 2021, during 2023 we extended the fixed income portfolio duration as the sustained higher market yields provide an opportunity to increase risk-adjusted returns. As recession risks remain elevated, we also retained defensive positioning to equity risk and credit risk in the portfolio through a reduced allocation to public equity, high yield bonds and bank loans. We expect to maintain performance-based investments in our portfolio, consistent with our strategy to have a greater proportion of return derived from idiosyncratic assets or operating performance.Contractual maturities and yields of fixed income securities for the next three yearsFixed income securities($ in millions)Carrying valueInvestment yield2024$3,374 3.0 %20256,288 3.5 20265,565 3.5 Investments Outlook We plan to focus on the following priorities:•Enhance investment portfolio returns through use of a dynamic capital allocation framework and focus on tax efficiency.•Leverage our broad capabilities to manage the portfolio to earn higher risk-adjusted returns on capital.•Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile.We utilize our integrated enterprise risk and return management framework to determine the amount of investment risk we are willing to accept. After reducing interest rate risk by shortening the portfolio duration beginning in late 2021, during 2023 we extended the fixed income portfolio duration as the sustained higher"
    },
    {
      "status": "MODIFIED",
      "current_title": "A.M. Best financial strength rating (1)",
      "prior_title": "A.M. Best financial strength rating (1)",
      "similarity_score": 0.889,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"State-based industry pool or facility programs MCCA (2) Federal Government - NFIP A+ A+ Sanders RE II Ltd.\""
      ],
      "current_body": "State-based industry pool or facility programs MCCA (2) Federal Government - NFIP A+ A+ Sanders RE II Ltd. DaVinci Reinsurance Limited A+ A",
      "prior_body": "State-based industry pool or facility programs MCCA (2) Federal Government - NFIP A+"
    },
    {
      "status": "MODIFIED",
      "current_title": "Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating",
      "prior_title": "Fair value and unrealized net capital gains (losses) for fixed income securities by credit rating",
      "similarity_score": 0.885,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Fair value Fair value Fair value Fair value Fair value Fair value Municipal bonds, including tax-exempt and taxable securities, include general obligations of state and local issuers and revenue bonds.Our practice for acquiring and monitoring municipal bonds is predominantly based on the underlying credit quality of the primary obligor.\"",
        "Reworded sentence: \"$91 million of the portfolio is internally rated as of December 31, 2024.\"",
        "Reworded sentence: \"The below investment grade corporate bonds portfolio is made up of 356 issuers.\"",
        "Reworded sentence: \"This results in a portfolio with broad exposure to the high yield market with an emphasis on idiosyncratic positions reflective of our views of market conditions and opportunities.Foreign government securities consist of Canadian governmental and provincial securities (all of which are held by our Canadian companies).ABS are structured securities that are primarily collateralized by consumer or corporate borrowings and residential and commercial real estate loans.\"",
        "Removed sentence: \"As a result of downgrades in the insurers’ credit ratings, the ratings of the insured municipal bonds generally reflect the underlying ratings of the primary obligor.\""
      ],
      "current_body": "Fair value Fair value Fair value Fair value Fair value Fair value Municipal bonds, including tax-exempt and taxable securities, include general obligations of state and local issuers and revenue bonds.Our practice for acquiring and monitoring municipal bonds is predominantly based on the underlying credit quality of the primary obligor. We currently rely on the primary obligor to pay all contractual cash flows and are not relying on bond insurers for payments.Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by entities in unregistered form under SEC Rule 144A which allows purchasers to more easily resell these securities under certain conditions.Our $8.96 billion portfolio of privately placed securities, primarily 144A bonds, is diversified by issuer, industry sector and country. The portfolio is made up of 544 issuers. Privately placed corporate obligations may contain structural security features such as financial covenants and call protections that provide investors greater protection against credit deterioration, reinvestment risk or fluctuations in interest rates than those typically found in publicly registered debt securities. Additionally, investments in these securities are made after fundamental analysis of issuers and sectors along with macro and asset class views. Ongoing monitoring includes continuous assessment of operating performance and financial position. Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. $91 million of the portfolio is internally rated as of December 31, 2024. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets.Our corporate bond portfolio includes $4.49 billion of below investment grade bonds, $3.88 billion of which are privately placed, primarily 144A bonds. These securities are diversified by issuer and industry sector. The below investment grade corporate bonds portfolio is made up of 356 issuers. We employ fundamental analyses of issuers and sectors along with macro and asset class views to identify investment opportunities. This results in a portfolio with broad exposure to the high yield market with an emphasis on idiosyncratic positions reflective of our views of market conditions and opportunities.Foreign government securities consist of Canadian governmental and provincial securities (all of which are held by our Canadian companies).ABS are structured securities that are primarily collateralized by consumer or corporate borrowings and residential and commercial real estate loans. The cash flows from the underlying collateral paid to the securitization trust are generally applied in a pre-determined order and are designed so that each Municipal bonds, including tax-exempt and taxable securities, include general obligations of state and local issuers and revenue bonds.Our practice for acquiring and monitoring municipal bonds is predominantly based on the underlying credit quality of the primary obligor. We currently rely on the primary obligor to pay all contractual cash flows and are not relying on bond insurers for payments.Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by entities in unregistered form under SEC Rule 144A which allows purchasers to more easily resell these securities under certain conditions.Our $8.96 billion portfolio of privately placed securities, primarily 144A bonds, is diversified by issuer, industry sector and country. The portfolio is made up of 544 issuers. Privately placed corporate obligations may contain structural security features such as financial covenants and call protections that provide investors greater protection against credit deterioration, reinvestment risk or fluctuations in interest rates than those typically found in publicly registered debt securities. Additionally, investments in these securities are made after fundamental analysis of issuers and sectors along with macro and asset class views. Ongoing monitoring includes continuous assessment of Municipal bonds, including tax-exempt and taxable securities, include general obligations of state and local issuers and revenue bonds. Our practice for acquiring and monitoring municipal bonds is predominantly based on the underlying credit quality of the primary obligor. We currently rely on the primary obligor to pay all contractual cash flows and are not relying on bond insurers for payments. Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by entities in unregistered form under SEC Rule 144A which allows purchasers to more easily resell these securities under certain conditions. Our $8.96 billion portfolio of privately placed securities, primarily 144A bonds, is diversified by issuer, industry sector and country. The portfolio is made up of 544 issuers. Privately placed corporate obligations may contain structural security features such as financial covenants and call protections that provide investors greater protection against credit deterioration, reinvestment risk or fluctuations in interest rates than those typically found in publicly registered debt securities. Additionally, investments in these securities are made after fundamental analysis of issuers and sectors along with macro and asset class views. Ongoing monitoring includes continuous assessment of operating performance and financial position. Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. $91 million of the portfolio is internally rated as of December 31, 2024. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets.Our corporate bond portfolio includes $4.49 billion of below investment grade bonds, $3.88 billion of which are privately placed, primarily 144A bonds. These securities are diversified by issuer and industry sector. The below investment grade corporate bonds portfolio is made up of 356 issuers. We employ fundamental analyses of issuers and sectors along with macro and asset class views to identify investment opportunities. This results in a portfolio with broad exposure to the high yield market with an emphasis on idiosyncratic positions reflective of our views of market conditions and opportunities.Foreign government securities consist of Canadian governmental and provincial securities (all of which are held by our Canadian companies).ABS are structured securities that are primarily collateralized by consumer or corporate borrowings and residential and commercial real estate loans. The cash flows from the underlying collateral paid to the securitization trust are generally applied in a pre-determined order and are designed so that each operating performance and financial position. Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. $91 million of the portfolio is internally rated as of December 31, 2024. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets. Our corporate bond portfolio includes $4.49 billion of below investment grade bonds, $3.88 billion of which are privately placed, primarily 144A bonds. These securities are diversified by issuer and industry sector. The below investment grade corporate bonds portfolio is made up of 356 issuers. We employ fundamental analyses of issuers and sectors along with macro and asset class views to identify investment opportunities. This results in a portfolio with broad exposure to the high yield market with an emphasis on idiosyncratic positions reflective of our views of market conditions and opportunities. Foreign government securities consist of Canadian governmental and provincial securities (all of which are held by our Canadian companies). ABS are structured securities that are primarily collateralized by consumer or corporate borrowings and residential and commercial real estate loans. The cash flows from the underlying collateral paid to the securitization trust are generally applied in a pre-determined order and are designed so that each The Allstate Corporation 65 The Allstate Corporation 65 The Allstate Corporation 65 2024 Form 10-K Investments 2024 Form 10-K Investments security issued by the trust, typically referred to as a “class”, qualifies for a specific original rating.ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities. The payment priority and class subordination included in these securities serves as credit enhancement for holders of the senior or top portions of the structures. These securities continue to retain the payment priority features that existed at the origination of the securitization trust. Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable-rate mortgages), or both fixed and variable rate features.Equity securities of $4.46 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REIT”) equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments.Mortgage loans of $784 million comprise loans secured by first mortgages on developed commercial real estate of $723 million and residential mortgage loans of $61 million. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 6 of the consolidated financial statements.Limited partnership interests include $7.73 billion of interests in private equity funds, $1.24 billion of interests in real estate funds and $285 million of interests in other funds as of December 31, 2024. We have commitments to invest additional amounts in limited partnership interests totaling $3.35 billion as of December 31, 2024. Private equity limited partnerships by sector(% of carrying value)December 31, 2024Industrial21.6 %Healthcare13.0 Information technology12.2 Consumer discretionary12.0 Communication services7.7 Other33.5 Total100.0 %Real estate limited partnerships by sector(% of carrying value)December 31, 2024Industrial30.7 %Data centers23.2 Residential13.6 Healthcare12.5 Consumer staples5.3 Other14.7 Total100.0 %Short-term investments of $4.54 billion primarily comprise money market funds, commercial paper, U.S. Treasury bills, fixed income securities with a contractual maturity of one year or less at time of acquisition and other short-term investments, including securities lending collateral of $1.77 billion.Other investments primarily comprise $201 million of bank loans, $620 million of real estate and $2 million of derivatives as of December 31, 2024. For further detail on our use of derivatives, see Note 8 of the consolidated financial statements.Direct real estate investments by sector(% of carrying value)December 31, 2024Agriculture32.4 %Residential28.7 Industrial17.4 Retail14.0 Office7.3 Other0.2 Total100.0 % security issued by the trust, typically referred to as a “class”, qualifies for a specific original rating.ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities. The payment priority and class subordination included in these securities serves as credit enhancement for holders of the senior or top portions of the structures. These securities continue to retain the payment priority features that existed at the origination of the securitization trust. Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable-rate mortgages), or both fixed and variable rate features.Equity securities of $4.46 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REIT”) equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments.Mortgage loans of $784 million comprise loans secured by first mortgages on developed commercial real estate of $723 million and residential mortgage loans of $61 million. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 6 of the consolidated financial statements.Limited partnership interests include $7.73 billion of interests in private equity funds, $1.24 billion of interests in real estate funds and $285 million of interests in other funds as of December 31, 2024. We have commitments to invest additional amounts in limited partnership interests totaling $3.35 billion as of December 31, 2024. security issued by the trust, typically referred to as a “class”, qualifies for a specific original rating. ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities. The payment priority and class subordination included in these securities serves as credit enhancement for holders of the senior or top portions of the structures. These securities continue to retain the payment priority features that existed at the origination of the securitization trust. Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable-rate mortgages), or both fixed and variable rate features. Equity securities of $4.46 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REIT”) equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments. Mortgage loans of $784 million comprise loans secured by first mortgages on developed commercial real estate of $723 million and residential mortgage loans of $61 million. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 6 of the consolidated financial statements. Limited partnership interests include $7.73 billion of interests in private equity funds, $1.24 billion of interests in real estate funds and $285 million of interests in other funds as of December 31, 2024. We have commitments to invest additional amounts in limited partnership interests totaling $3.35 billion as of December 31, 2024. Private equity limited partnerships by sector(% of carrying value)December 31, 2024Industrial21.6 %Healthcare13.0 Information technology12.2 Consumer discretionary12.0 Communication services7.7 Other33.5 Total100.0 %Real estate limited partnerships by sector(% of carrying value)December 31, 2024Industrial30.7 %Data centers23.2 Residential13.6 Healthcare12.5 Consumer staples5.3 Other14.7 Total100.0 %Short-term investments of $4.54 billion primarily comprise money market funds, commercial paper, U.S. Treasury bills, fixed income securities with a contractual maturity of one year or less at time of acquisition and other short-term investments, including securities lending collateral of $1.77 billion.Other investments primarily comprise $201 million of bank loans, $620 million of real estate and $2 million of derivatives as of December 31, 2024. For further detail on our use of derivatives, see Note 8 of the consolidated financial statements.Direct real estate investments by sector(% of carrying value)December 31, 2024Agriculture32.4 %Residential28.7 Industrial17.4 Retail14.0 Office7.3 Other0.2 Total100.0 % Private equity limited partnerships by sector(% of carrying value)December 31, 2024Industrial21.6 %Healthcare13.0 Information technology12.2 Consumer discretionary12.0 Communication services7.7 Other33.5 Total100.0 % Communication services Real estate limited partnerships by sector(% of carrying value)December 31, 2024Industrial30.7 %Data centers23.2 Residential13.6 Healthcare12.5 Consumer staples5.3 Other14.7 Total100.0 % Short-term investments of $4.54 billion primarily comprise money market funds, commercial paper, U.S. Treasury bills, fixed income securities with a contractual maturity of one year or less at time of acquisition and other short-term investments, including securities lending collateral of $1.77 billion. Other investments primarily comprise $201 million of bank loans, $620 million of real estate and $2 million of derivatives as of December 31, 2024. For further detail on our use of derivatives, see Note 8 of the consolidated financial statements. Direct real estate investments by sector(% of carrying value)December 31, 2024Agriculture32.4 %Residential28.7 Industrial17.4 Retail14.0 Office7.3 Other0.2 Total100.0 % Unrealized net capital gains (losses)As of December 31,($ in millions)20242023U.S. government and agencies$(315)$(5)Municipal(143)(43)Corporate(438)(746)Foreign government12 4 ABS15 6 Fixed income securities(869)(784)Short-term investments(2)(1)Derivatives(2)(2)Equity method of accounting (“EMA”) limited partnerships— (4)Investments classified as held for sale(110)— Unrealized net capital gains and losses, pre-tax$(983)$(791)",
      "prior_body": "Fair value Fair value Fair value Fair value Fair value Fair value Municipal bonds, including tax exempt and taxable securities, include general obligations of state and local issuers and revenue bonds.Our practice for acquiring and monitoring municipal bonds is predominantly based on the underlying credit quality of the primary obligor. We currently rely on the primary obligor to pay all contractual cash flows and are not relying on bond insurers for payments. As a result of downgrades in the insurers’ credit ratings, the ratings of the insured municipal bonds generally reflect the underlying ratings of the primary obligor.Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by entities in unregistered form under SEC Rule 144A which allows purchasers to more easily resell these securities under certain conditions.Our $7.91 billion portfolio of privately placed securities, primarily 144A bonds, is diversified by issuer, industry sector and country. The portfolio is made up of 455 issuers. Privately placed corporate obligations may contain structural security features such as financial covenants and call protections that provide investors greater protection against credit deterioration, reinvestment risk or fluctuations in interest rates than those typically found in publicly registered debt securities. Additionally, investments in these securities are made after fundamental analysis of issuers and sectors along with macro and asset class views. Ongoing monitoring includes continuous assessment of operating performance and financial position. Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets.Our corporate bond portfolio includes $4.11 billion of below investment grade bonds, $3.39 billion of which are privately placed, primarily 144A bonds. These securities are diversified by issuer and industry sector. The below investment grade corporate bonds portfolio is made up of 317 issuers. We employ fundamental analyses of issuers and sectors along with macro and asset class views to identify investment opportunities. This results in a portfolio with broad exposure to the high yield market with an emphasis on idiosyncratic positions reflective of our views of market conditions and opportunities.Foreign government securities consist of Canadian governmental and provincial securities (all of which are held by our Canadian companies). Municipal bonds, including tax exempt and taxable securities, include general obligations of state and local issuers and revenue bonds.Our practice for acquiring and monitoring municipal bonds is predominantly based on the underlying credit quality of the primary obligor. We currently rely on the primary obligor to pay all contractual cash flows and are not relying on bond insurers for payments. As a result of downgrades in the insurers’ credit ratings, the ratings of the insured municipal bonds generally reflect the underlying ratings of the primary obligor.Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by entities in unregistered form under SEC Rule 144A which allows purchasers to more easily resell these securities under certain conditions.Our $7.91 billion portfolio of privately placed securities, primarily 144A bonds, is diversified by issuer, industry sector and country. The portfolio is made up of 455 issuers. Privately placed corporate obligations may contain structural security features such as financial covenants and call protections that provide investors greater protection against credit deterioration, reinvestment risk or fluctuations in interest rates than those typically found in publicly registered debt Municipal bonds, including tax exempt and taxable securities, include general obligations of state and local issuers and revenue bonds. Our practice for acquiring and monitoring municipal bonds is predominantly based on the underlying credit quality of the primary obligor. We currently rely on the primary obligor to pay all contractual cash flows and are not relying on bond insurers for payments. As a result of downgrades in the insurers’ credit ratings, the ratings of the insured municipal bonds generally reflect the underlying ratings of the primary obligor. Corporate bonds include publicly traded and privately placed securities. Privately placed securities primarily consist of corporate issued senior debt securities that are negotiated with the borrower or are issued by entities in unregistered form under SEC Rule 144A which allows purchasers to more easily resell these securities under certain conditions. Our $7.91 billion portfolio of privately placed securities, primarily 144A bonds, is diversified by issuer, industry sector and country. The portfolio is made up of 455 issuers. Privately placed corporate obligations may contain structural security features such as financial covenants and call protections that provide investors greater protection against credit deterioration, reinvestment risk or fluctuations in interest rates than those typically found in publicly registered debt securities. Additionally, investments in these securities are made after fundamental analysis of issuers and sectors along with macro and asset class views. Ongoing monitoring includes continuous assessment of operating performance and financial position. Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets.Our corporate bond portfolio includes $4.11 billion of below investment grade bonds, $3.39 billion of which are privately placed, primarily 144A bonds. These securities are diversified by issuer and industry sector. The below investment grade corporate bonds portfolio is made up of 317 issuers. We employ fundamental analyses of issuers and sectors along with macro and asset class views to identify investment opportunities. This results in a portfolio with broad exposure to the high yield market with an emphasis on idiosyncratic positions reflective of our views of market conditions and opportunities.Foreign government securities consist of Canadian governmental and provincial securities (all of which are held by our Canadian companies). securities. Additionally, investments in these securities are made after fundamental analysis of issuers and sectors along with macro and asset class views. Ongoing monitoring includes continuous assessment of operating performance and financial position. Every issue not rated by an independent rating agency is internally rated with a formal rating affirmation at least once a year. Liquidity of securities issued by public entities in unregistered form is similar to public debt markets. Our corporate bond portfolio includes $4.11 billion of below investment grade bonds, $3.39 billion of which are privately placed, primarily 144A bonds. These securities are diversified by issuer and industry sector. The below investment grade corporate bonds portfolio is made up of 317 issuers. We employ fundamental analyses of issuers and sectors along with macro and asset class views to identify investment opportunities. This results in a portfolio with broad exposure to the high yield market with an emphasis on idiosyncratic positions reflective of our views of market conditions and opportunities. Foreign government securities consist of Canadian governmental and provincial securities (all of which are held by our Canadian companies). 68 www.allstate.com 68 www.allstate.com 68 www.allstate.com 2023 Form 10-K Investments 2023 Form 10-K Investments ABS are structured securities that are primarily collateralized by consumer or corporate borrowings and residential and commercial real estate loans. The cash flows from the underlying collateral paid to the securitization trust are generally applied in a pre-determined order and are designed so that each security issued by the trust, typically referred to as a “class”, qualifies for a specific original rating.ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities. For example, the “senior” portion or “top” of the capital structure, or rating class, which would originally qualify for a rating of Aaa typically has priority in receiving principal repayments on the underlying collateral and retains this priority until the class is paid in full. In a sequential structure, underlying collateral principal repayments are directed to the most senior rated Aaa class in the structure until paid in full, after which principal repayments are directed to the next most senior Aaa class in the structure until it is paid in full. Senior Aaa classes generally share any losses from the underlying collateral on a pro-rata basis after losses are absorbed by classes with lower original ratings.The payment priority and class subordination included in these securities serves as credit enhancement for holders of the senior or top portions of the structures. These securities continue to retain the payment priority features that existed at the origination of the securitization trust. Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable rate mortgages), or both fixed and variable rate features.Equity securities of $2.41 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REIT”) equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments.Mortgage loans of $822 million mainly comprise loans secured by first mortgages on developed commercial real estate. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 5 of the consolidated financial statements.Limited partnership interests include $7.15 billion of interests in private equity funds, $1.09 billion of interests in real estate funds and $141 million of interests in other funds as of December 31, 2023. We have commitments to invest additional amounts in limited partnership interests totaling $2.94 billion as of December 31, 2023. Private equity limited partnerships by sector(% of carrying value)December 31, 2023Industrial20.8 %Healthcare12.5 Information technology11.3 Consumer discretionary10.9 Consumer staples8.8 Other35.7 Total100.0 %Real estate limited partnerships by sector(% of carrying value)December 31, 2023Industrial28.8 %Residential19.1 Data centers19.0 Healthcare11.4 Consumer staples5.1 Other16.6 Total100.0 %Short-term investments of $5.14 billion primarily comprise money market funds, commercial paper, U.S. Treasury bills and other short-term investments, including securities lending collateral of $1.59 billion. Other investments primarily comprise $224 million of bank loans, $709 million of real estate, $119 million of policy loans and $1 million of derivatives as of December 31, 2023. For further detail on our use of derivatives, see Note 7 of the consolidated financial statements.Direct real estate investments by sector(% of carrying value)December 31, 2023Agriculture28.6 %Industrial23.7 Residential20.6 Retail18.5 Other8.6 Total100.0 % ABS are structured securities that are primarily collateralized by consumer or corporate borrowings and residential and commercial real estate loans. The cash flows from the underlying collateral paid to the securitization trust are generally applied in a pre-determined order and are designed so that each security issued by the trust, typically referred to as a “class”, qualifies for a specific original rating.ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities. For example, the “senior” portion or “top” of the capital structure, or rating class, which would originally qualify for a rating of Aaa typically has priority in receiving principal repayments on the underlying collateral and retains this priority until the class is paid in full. In a sequential structure, underlying collateral principal repayments are directed to the most senior rated Aaa class in the structure until paid in full, after which principal repayments are directed to the next most senior Aaa class in the structure until it is paid in full. Senior Aaa classes generally share any losses from the underlying collateral on a pro-rata basis after losses are absorbed by classes with lower original ratings.The payment priority and class subordination included in these securities serves as credit enhancement for holders of the senior or top portions of the structures. These securities continue to retain the payment priority features that existed at the origination of the securitization trust. Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable rate mortgages), or both fixed and variable rate features.Equity securities of $2.41 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REIT”) equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments.Mortgage loans of $822 million mainly comprise loans secured by first mortgages on developed commercial real estate. Key considerations used to manage our ABS are structured securities that are primarily collateralized by consumer or corporate borrowings and residential and commercial real estate loans. The cash flows from the underlying collateral paid to the securitization trust are generally applied in a pre-determined order and are designed so that each security issued by the trust, typically referred to as a “class”, qualifies for a specific original rating. ABS includes collateralized debt obligations, consumer and other ABS. Credit risk is managed by monitoring the performance of the underlying collateral. Many of the securities in the ABS portfolio have credit enhancement with features such as overcollateralization, subordinated structures, reserve funds, guarantees or insurance. ABS also includes residential mortgage-backed securities and commercial mortgage-backed securities. For example, the “senior” portion or “top” of the capital structure, or rating class, which would originally qualify for a rating of Aaa typically has priority in receiving principal repayments on the underlying collateral and retains this priority until the class is paid in full. In a sequential structure, underlying collateral principal repayments are directed to the most senior rated Aaa class in the structure until paid in full, after which principal repayments are directed to the next most senior Aaa class in the structure until it is paid in full. Senior Aaa classes generally share any losses from the underlying collateral on a pro-rata basis after losses are absorbed by classes with lower original ratings. The payment priority and class subordination included in these securities serves as credit enhancement for holders of the senior or top portions of the structures. These securities continue to retain the payment priority features that existed at the origination of the securitization trust. Other forms of credit enhancement may include structural features embedded in the securitization trust, such as overcollateralization, excess spread and bond insurance. The underlying collateral may contain fixed interest rates, variable interest rates (such as adjustable rate mortgages), or both fixed and variable rate features. Equity securities of $2.41 billion primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust (“REIT”) equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments. Mortgage loans of $822 million mainly comprise loans secured by first mortgages on developed commercial real estate. Key considerations used to manage our exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 5 of the consolidated financial statements.Limited partnership interests include $7.15 billion of interests in private equity funds, $1.09 billion of interests in real estate funds and $141 million of interests in other funds as of December 31, 2023. We have commitments to invest additional amounts in limited partnership interests totaling $2.94 billion as of December 31, 2023. Private equity limited partnerships by sector(% of carrying value)December 31, 2023Industrial20.8 %Healthcare12.5 Information technology11.3 Consumer discretionary10.9 Consumer staples8.8 Other35.7 Total100.0 %Real estate limited partnerships by sector(% of carrying value)December 31, 2023Industrial28.8 %Residential19.1 Data centers19.0 Healthcare11.4 Consumer staples5.1 Other16.6 Total100.0 %Short-term investments of $5.14 billion primarily comprise money market funds, commercial paper, U.S. Treasury bills and other short-term investments, including securities lending collateral of $1.59 billion. Other investments primarily comprise $224 million of bank loans, $709 million of real estate, $119 million of policy loans and $1 million of derivatives as of December 31, 2023. For further detail on our use of derivatives, see Note 7 of the consolidated financial statements.Direct real estate investments by sector(% of carrying value)December 31, 2023Agriculture28.6 %Industrial23.7 Residential20.6 Retail18.5 Other8.6 Total100.0 % exposure include property type and geographic diversification. For further detail on our mortgage loan portfolio, see Note 5 of the consolidated financial statements. Limited partnership interests include $7.15 billion of interests in private equity funds, $1.09 billion of interests in real estate funds and $141 million of interests in other funds as of December 31, 2023. We have commitments to invest additional amounts in limited partnership interests totaling $2.94 billion as of December 31, 2023. Private equity limited partnerships by sector(% of carrying value)December 31, 2023Industrial20.8 %Healthcare12.5 Information technology11.3 Consumer discretionary10.9 Consumer staples8.8 Other35.7 Total100.0 % Real estate limited partnerships by sector(% of carrying value)December 31, 2023Industrial28.8 %Residential19.1 Data centers19.0 Healthcare11.4 Consumer staples5.1 Other16.6 Total100.0 % Short-term investments of $5.14 billion primarily comprise money market funds, commercial paper, U.S. Treasury bills and other short-term investments, including securities lending collateral of $1.59 billion. Other investments primarily comprise $224 million of bank loans, $709 million of real estate, $119 million of policy loans and $1 million of derivatives as of December 31, 2023. For further detail on our use of derivatives, see Note 7 of the consolidated financial statements. Direct real estate investments by sector(% of carrying value)December 31, 2023Agriculture28.6 %Industrial23.7 Residential20.6 Retail18.5 Other8.6 Total100.0 % The Allstate Corporation 69 The Allstate Corporation 69 The Allstate Corporation 69 2023 Form 10-K Investments 2023 Form 10-K Investments Unrealized net capital gains (losses)As of December 31,($ in millions)20232022U.S. government and agencies$(5)$(225)Municipal(43)(290)Corporate(746)(2,299)Foreign government4 (40)ABS6 (31)Fixed income securities(784)(2,885)Short-term investments(1)(1)Derivatives(2)(3)Equity method of accounting (“EMA”) limited partnerships(4)2 Unrealized net capital gains and losses, pre-tax$(791)$(2,887)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Effects of reinsurance ceded and indemnification programs on premiums earned and claims and claims expense",
      "prior_title": "Effects of reinsurance ceded and indemnification programs on our premiums earned and claims and claims expense",
      "similarity_score": 0.879,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"State-based industry pool or facility programs Federal Government - NFIP (1) Protection Services State-based industry pool or facility programs Federal Government - NFIP (1)\""
      ],
      "current_body": "State-based industry pool or facility programs Federal Government - NFIP (1) Protection Services State-based industry pool or facility programs Federal Government - NFIP (1)",
      "prior_body": "State-based industry pool or facility programs Federal Government - NFIP"
    },
    {
      "status": "MODIFIED",
      "current_title": "2024 Highlights",
      "prior_title": "2023 Highlights",
      "similarity_score": 0.872,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Business.This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.\"",
        "Reworded sentence: \"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 itemsMacroeconomic impactsMacroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S.\"",
        "Reworded sentence: \"Business.This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.\"",
        "Reworded sentence: \"This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.\""
      ],
      "current_body": "OverviewThe following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein.A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business.This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023. Discussions of 2022 results and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7 of our annual report on Form 10-K for 2023, filed February 21, 2024. The most important factors we monitor to evaluate the financial condition and performance for the Company include:•Allstate Protection: premium, policies in force (“PIF”), new business sales, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio•Protection Services: revenues, premium written, PIF and adjusted net income•Allstate Health and Benefits: premiums, other revenue, new business sales, PIF, benefit ratio, expenses and adjusted net income•Investments: exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and fixed income portfolio duration•Financial condition: liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equityMeasuring segment profit or lossThe 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 expense (“losses”), 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 accounting principles generally accepted in the United States of America (“GAAP”). We use this measure in our evaluation of results of operations to analyze profitability. 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 itemsMacroeconomic impactsMacroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, conflict in the Middle East, the Russia/Ukraine conflict, supply chain disruptions, labor shortages and potential trade policy actions, such as tariffs and quotas. These factors should be considered when comparing the current period to prior periods. Macroeconomic impacts are disclosed in Part 1 “Item 1A. Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect the business and results of operations”. This is not inclusive of all potential impacts and should not be treated as such. Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2024 results.Dispositions On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc. to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits business for approximately $2.0 billion in cash. The employer voluntary benefits business is reported in the Allstate Health and Benefits segment, and beginning in the third quarter of 2024, the assets and liabilities of the business were classified as held for sale. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business for approximately $1.25 billion in cash, adjusted for the closing balance sheet. The group health business is reported in the Allstate Health and Benefits segment, and beginning in the first quarter of 2025, the assets OverviewThe following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein.A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business.This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023. Discussions of 2022 results and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7 of our annual report on Form 10-K for 2023, filed February 21, 2024. The most important factors we monitor to evaluate the financial condition and performance for the Company include:•Allstate Protection: premium, policies in force (“PIF”), new business sales, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio•Protection Services: revenues, premium written, PIF and adjusted net income•Allstate Health and Benefits: premiums, other revenue, new business sales, PIF, benefit ratio, expenses and adjusted net income•Investments: exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and fixed income portfolio duration•Financial condition: liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equityMeasuring segment profit or lossThe 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 expense (“losses”), 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 accounting principles generally accepted in the United States of America (“GAAP”). We Overview The following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein. A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business. This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023. Discussions of 2022 results and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7 of our annual report on Form 10-K for 2023, filed February 21, 2024. The most important factors we monitor to evaluate the financial condition and performance for the Company include: •Allstate Protection: premium, policies in force (“PIF”), new business sales, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio •Protection Services: revenues, premium written, PIF and adjusted net income •Allstate Health and Benefits: premiums, other revenue, new business sales, PIF, benefit ratio, expenses and adjusted net income •Investments: exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and fixed income portfolio duration •Financial condition: liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equity",
      "prior_body": "OverviewThe following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein.A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business.This section of this Form 10-K generally discusses 2023 and 2022 results and year-to-year comparisons between 2023 and 2022. Discussions of 2021 results and year-to-year comparisons between 2022 and 2021 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7 of our annual report on Form 10-K for 2022, filed February 16, 2023. Certain amounts have been reclassified or recast to reflect the application of the new guidance to all in-scope long-duration insurance contracts and to conform to current year presentation.The most important factors we monitor to evaluate the financial condition and performance for our reportable segments and the Company include:•Allstate Protection: premium, policies in force (“PIF”), new business sales, policy retention, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio•Protection Services: revenues, premium written, PIF and adjusted net income•Allstate Health and Benefits: premiums, other revenue, new business sales, PIF, benefit ratio, expenses and adjusted net income•Investments: exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and asset duration•Financial condition: liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equityMeasuring segment profit or lossThe 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 is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), Shelter-in-Place Payback expense, 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 accounting principles generally accepted in the United States of America (“GAAP”). We use this measure in our evaluation of results of operations to analyze profitability. Adjusted net income 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•Business combination expenses and the amortization or impairment of purchased intangibles•Income or loss from discontinued operations•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 OverviewThe following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein.A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business.This section of this Form 10-K generally discusses 2023 and 2022 results and year-to-year comparisons between 2023 and 2022. Discussions of 2021 results and year-to-year comparisons between 2022 and 2021 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7 of our annual report on Form 10-K for 2022, filed February 16, 2023. Certain amounts have been reclassified or recast to reflect the application of the new guidance to all in-scope long-duration insurance contracts and to conform to current year presentation.The most important factors we monitor to evaluate the financial condition and performance for our reportable segments and the Company include:•Allstate Protection: premium, policies in force (“PIF”), new business sales, policy retention, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio•Protection Services: revenues, premium written, PIF and adjusted net income•Allstate Health and Benefits: premiums, other revenue, new business sales, PIF, benefit ratio, expenses and adjusted net income•Investments: exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and asset duration•Financial condition: liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equity Overview The following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as “we,” “our,” “us,” the “Company” or “Allstate”). It should be read in conjunction with the consolidated financial statements and related notes found under Item 8. contained herein. A discussion of strategy, including updates to the multi-year Transformative Growth initiative, can be found in Part 1, Item 1. Business. This section of this Form 10-K generally discusses 2023 and 2022 results and year-to-year comparisons between 2023 and 2022. Discussions of 2021 results and year-to-year comparisons between 2022 and 2021 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis (“MD&A”) in Part II, Item 7 of our annual report on Form 10-K for 2022, filed February 16, 2023. Certain amounts have been reclassified or recast to reflect the application of the new guidance to all in-scope long-duration insurance contracts and to conform to current year presentation. The most important factors we monitor to evaluate the financial condition and performance for our reportable segments and the Company include: •Allstate Protection: premium, policies in force (“PIF”), new business sales, policy retention, price changes, claim frequency and severity, catastrophes, loss ratio, expenses, underwriting results and combined ratio •Protection Services: revenues, premium written, PIF and adjusted net income •Allstate Health and Benefits: premiums, other revenue, new business sales, PIF, benefit ratio, expenses and adjusted net income •Investments: exposure to market risk, asset allocation, credit quality, total return, net investment income, cash flows, net gains and losses on investments and derivatives, unrealized capital gains and losses, long-term returns and asset duration •Financial condition: liquidity, parent holding company deployable assets, financial strength ratings, operating leverage, debt levels, book value per share and return on equity Measuring segment profit or lossThe 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 is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), Shelter-in-Place Payback expense, 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 accounting principles generally accepted in the United States of America (“GAAP”). We use this measure in our evaluation of results of operations to analyze profitability. Adjusted net income 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•Business combination expenses and the amortization or impairment of purchased intangibles•Income or loss from discontinued operations•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"
    },
    {
      "status": "MODIFIED",
      "current_title": "Run-off Property-Liability",
      "prior_title": "Run-off Property-Liability",
      "similarity_score": 0.868,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on assessments of the characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by policyholders.\""
      ],
      "current_body": "We conduct an annual review in the third quarter of each year to evaluate and establish asbestos, environmental and other run-off reserves. Reserves are recorded in the reporting period in which they are determined. Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on assessments of the characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by policyholders. Run-off Property-Liability net reserve reestimates202420232022($ in millions)January 1 reservesReserve reestimatesJanuary 1 reservesReserve reestimatesJanuary 1 reservesReserve reestimatesAsbestos claims$804 $19 $811 $44 $828 $34 Environmental claims267 10 267 18 226 56 Other run-off lines373 39 373 27 367 35 Total $1,444 $68 $1,451 $89 $1,421 $125 Underwriting loss$(73)$(94)$(129)",
      "prior_body": "We conduct an annual review in the third quarter of each year to evaluate and establish asbestos, environmental and other run-off reserves. Reserves are recorded in the reporting period in which they are determined. Using established industry and actuarial best practices and assuming no change in the regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on assessments of the characteristics of exposure (e.g. claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by policyholders. Run-off Property-Liability net reserve reestimates202320222021($ in millions)January 1 reservesReserve reestimatesJanuary 1 reservesReserve reestimatesJanuary 1 reservesReserve reestimatesAsbestos claims$811 $44 $828 $34 $827 $63 Environmental claims267 18 226 56 206 40 Other run-off lines373 27 367 35 375 13 Total $1,451 $89 $1,421 $125 $1,408 $116 Underwriting loss$(94)$(129)$(120)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Ending reserves (1)",
      "prior_title": "Ending reserves (2)",
      "similarity_score": 0.845,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"(1)Gross reserves for the year ended December 31, 2024, comprise 70% case reserves and 30% IBNR.\"",
        "Removed sentence: \"Gross reserves for the year ended December 31, 2021, comprise 74% case reserves and 26% IBNR.\"",
        "Reworded sentence: \"MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation on any policy effective July 1, 2020 or prior, and on policies that selected the unlimited PIP benefits option on or after July 2, 2020.\"",
        "Reworded sentence: \"As of December 31, 2024, approximately 90% of our 1,300 catastrophic claims that are eligible for reimbursement by the MCCA occurred more than 5 years ago and continue to incur costs.\"",
        "Reworded sentence: \"MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation on any policy effective July 1, 2020 or prior, and on policies that selected the unlimited PIP benefits option on or after July 2, 2020.\""
      ],
      "current_body": "(1)Gross reserves for the year ended December 31, 2024, comprise 70% case reserves and 30% IBNR. Gross reserves for the year ended December 31, 2023, comprise 77% case reserves and 23% IBNR. Gross reserves for the year ended December 31, 2022, comprise 76% case reserves and 24% IBNR. The MCCA does not require member companies to report ultimate case reserves. Pending MCCA claims differ from most personal lines insurance pending claims as other personal lines policies incurred claims settle in shorter periods due to having a coverage limit. MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation on any policy effective July 1, 2020 or prior, and on policies that selected the unlimited PIP benefits option on or after July 2, 2020. Many of these injuries are catastrophic in nature, resulting in serious permanent disabilities that require attendant and residential care for periods that may span decades. A significant portion of the ultimate incurred claim reserves and the recoverables can be attributed to a small number of catastrophic claims that occurred more than five years ago and continue to pay lifetime benefits. As of December 31, 2024, approximately 90% of our 1,300 catastrophic claims that are eligible for reimbursement by the MCCA occurred more than 5 years ago and continue to incur costs. There are 63 claims with reserves in excess of $15 million as of December 31, 2024, which comprise approximately 24% of the gross ending reserves in the table above. As a result, significant developments with a single claimant can result in volatility in prior year incurred claims. Pending MCCA claims differ from most personal lines insurance pending claims as other personal lines policies incurred claims settle in shorter periods due to having a coverage limit. MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation on any policy effective July 1, 2020 or prior, and on policies that selected the unlimited PIP benefits option on or after July 2, 2020. Many of these injuries are catastrophic in nature, resulting in serious permanent disabilities that require attendant and residential care for periods that may span decades. A significant portion of the ultimate incurred claim reserves and the recoverables can be attributed to a small number of catastrophic claims that occurred more than five years ago and continue to pay lifetime benefits. Pending MCCA claims differ from most personal lines insurance pending claims as other personal lines policies incurred claims settle in shorter periods due to having a coverage limit. MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation on any policy effective July 1, 2020 or prior, and on policies that selected the unlimited PIP benefits option on or after July 2, 2020. Many of these injuries are catastrophic in nature, resulting in serious permanent disabilities that require attendant and residential care for periods that may span decades. A significant portion of the ultimate incurred claim reserves and the recoverables can be attributed to a small number of catastrophic claims that occurred more than five years ago and continue to pay lifetime benefits. As of December 31, 2024, approximately 90% of our 1,300 catastrophic claims that are eligible for reimbursement by the MCCA occurred more than 5 years ago and continue to incur costs. There are 63 claims with reserves in excess of $15 million as of December 31, 2024, which comprise approximately 24% of the gross ending reserves in the table above. As a result, significant developments with a single claimant can result in volatility in prior year incurred claims. As of December 31, 2024, approximately 90% of our 1,300 catastrophic claims that are eligible for reimbursement by the MCCA occurred more than 5 years ago and continue to incur costs. There are 63 claims with reserves in excess of $15 million as of December 31, 2024, which comprise approximately 24% of the gross ending reserves in the table above. As a result, significant developments with a single claimant can result in volatility in prior year incurred claims. Pending, new and closed claims for Michigan PIP exposureFor the years ended December 31,Number of claims (1)202420232022Pending, beginning of year4,726 5,568 5,421 New6,612 6,496 8,059 Closed(7,027)(7,338)(7,912)Pending, end of year4,311 4,726 5,568",
      "prior_body": "(1)Paid claims and claims expenses reported in the table for the current and prior years, recovered from the MCCA totaled $106 million, $114 million and $117 million in 2023, 2022 and 2021, respectively. (2)Gross reserves for the year ended December 31, 2023, comprise 77% case reserves and 23% IBNR. Gross reserves for the year ended December 31, 2022, comprise 76% case reserves and 24% IBNR. Gross reserves for the year ended December 31, 2021, comprise 74% case reserves and 26% IBNR. The MCCA does not require member companies to report ultimate case reserves. Pending MCCA claims differ from most personal lines insurance pending claims as other personal lines policies incurred claims settle in shorter periods due to having a coverage limit. MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation. Many of these injuries are catastrophic in nature, resulting in serious permanent disabilities that require attendant and residential care for periods that may span decades. A significant portion of the ultimate incurred claim reserves and the recoverables can be attributed to a small number of catastrophic claims that occurred more than five years ago and continue to pay lifetime benefits. As of December 31, 2023, approximately 1,350 of our catastrophic claims that are eligible for reimbursement are pending with the MCCA, of which approximately 80% represents claims that occurred more than 5 years ago. There are 74 claims with reserves in excess of $15 million as of December 31, 2023, which comprise approximately 30% of the gross ending reserves in the table above. As a result, significant developments with a single claimant can result in volatility in prior year incurred claims. Pending MCCA claims differ from most personal lines insurance pending claims as other personal lines policies incurred claims settle in shorter periods due to having a coverage limit. MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation. Many of these injuries are catastrophic in nature, resulting in serious permanent disabilities that require attendant and residential care for periods that may span decades. A significant portion of the ultimate incurred claim reserves and the recoverables can be attributed to a small number of catastrophic claims that occurred more than five years ago and continue to pay lifetime benefits. Pending MCCA claims differ from most personal lines insurance pending claims as other personal lines policies incurred claims settle in shorter periods due to having a coverage limit. MCCA claims can be outstanding for a claimant’s lifetime, as there is no contractual limitation. Many of these injuries are catastrophic in nature, resulting in serious permanent disabilities that require attendant and residential care for periods that may span decades. A significant portion of the ultimate incurred claim reserves and the recoverables can be attributed to a small number of catastrophic claims that occurred more than five years ago and continue to pay lifetime benefits. As of December 31, 2023, approximately 1,350 of our catastrophic claims that are eligible for reimbursement are pending with the MCCA, of which approximately 80% represents claims that occurred more than 5 years ago. There are 74 claims with reserves in excess of $15 million as of December 31, 2023, which comprise approximately 30% of the gross ending reserves in the table above. As a result, significant developments with a single claimant can result in volatility in prior year incurred claims. As of December 31, 2023, approximately 1,350 of our catastrophic claims that are eligible for reimbursement are pending with the MCCA, of which approximately 80% represents claims that occurred more than 5 years ago. There are 74 claims with reserves in excess of $15 million as of December 31, 2023, which comprise approximately 30% of the gross ending reserves in the table above. As a result, significant developments with a single claimant can result in volatility in prior year incurred claims. Pending, new and closed claims for Michigan personal injury protection exposureFor the years ended December 31,Number of claims (1)202320222021Pending, beginning of year5,568 5,421 4,857 National General acquisition as of January 4, 2021— — 525 New6,496 8,059 8,616 Closed(7,338)(7,912)(8,577)Pending, end of year4,726 5,568 5,421"
    },
    {
      "status": "MODIFIED",
      "current_title": "Michigan PIP reserve and claim activity before and after the effects of MCCA recoverables",
      "prior_title": "Michigan personal injury protection reserve and claim activity before and after the effects of MCCA recoverables",
      "similarity_score": 0.822,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Incurred claims and claims expense - current year Incurred claims and claims expense - prior years Claims and claims expense paid - current year Claims and claims expense paid - prior years\""
      ],
      "current_body": "Incurred claims and claims expense - current year Incurred claims and claims expense - prior years Claims and claims expense paid - current year Claims and claims expense paid - prior years",
      "prior_body": "Incurred claims and claims expense - current year Incurred claims and claims expense - prior years Claims and claims expense paid - current year (1) Claims and claims expense paid - prior years (1)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Run-off Property-Liability Segment",
      "prior_title": "Run-off Property-Liability Segment",
      "similarity_score": 0.819,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Underwriting resultsFor the years ended December 31,($ in millions)202420232022Claims and claims expense Asbestos claims$(19)$(44)$(34)Environmental claims(10)(18)(56)Other run-off lines(39)(27)(35)Total claims and claims expense(68)(89)(125)Operating costs and expenses(5)(5)(4)Underwriting loss$(73)$(94)$(129) Underwriting losses in 2024 of $73 million and $94 million in 2023 primarily related to our annual reserve review using established industry and actuarial best practices and loss adjustment expenses.\"",
        "Reworded sentence: \"The reserve reestimates in 2024 primarily related to new reported information for asbestos related claims and adverse developments within the other run-off lines.\"",
        "Reworded sentence: \"Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance($ in millions) December 31, 2024December 31, 2023Asbestos claimsGross reserves$1,124 $1,166 Reinsurance (350)(362)Net reserves 774 804 Environmental claimsGross reserves320 331 Reinsurance (61)(64)Net reserves 259 267 Other run-off claimsGross reserves439 445 Reinsurance (58)(72)Net reserves381 373 Total Gross reserves 1,883 1,942 Reinsurance (469)(498)Net reserves$1,414 $1,444 Gross reserves Reinsurance 48 www.allstate.com 48 www.allstate.com 48 www.allstate.com 2024 Form 10-K Run-off Property-Liability 2024 Form 10-K Run-off Property-Liability Reserves by type of exposure before and after the effects of reinsurance($ in millions)December 31, 2024December 31, 2023Direct excess commercial insurance Gross reserves $1,082 $1,114 Reinsurance (363)(382) Net reserves719 732 Assumed reinsurance coverage Gross reserves 581 603 Reinsurance (54)(54) Net reserves527 549 Direct primary commercial insurance Gross reserves 133 140 Reinsurance (51)(61) Net reserves82 79 Other run-off business Gross reserves— 1 Reinsurance— — Net reserves— 1 Unallocated loss adjustment expenses Gross reserves87 84 Reinsurance(1)(1) Net reserves86 83 Total Gross reserves1,883 1,942 Reinsurance(469)(498) Net reserves$1,414 $1,444\""
      ],
      "current_body": "The Run-off Property-Liability segment includes results from property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other run-off lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off. We may pursue settlement agreements including policy buybacks on direct excess commercial business when appropriate to improve the certainty of the liabilities. Settlement agreements are negotiated contracts between Allstate and third parties that generally set forth the rights and obligations of the parties, including terms of payment for claims. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. Underwriting resultsFor the years ended December 31,($ in millions)202420232022Claims and claims expense Asbestos claims$(19)$(44)$(34)Environmental claims(10)(18)(56)Other run-off lines(39)(27)(35)Total claims and claims expense(68)(89)(125)Operating costs and expenses(5)(5)(4)Underwriting loss$(73)$(94)$(129) Underwriting losses in 2024 of $73 million and $94 million in 2023 primarily related to our annual reserve review using established industry and actuarial best practices and loss adjustment expenses. The annual review resulted in unfavorable reserve reestimates totaling $58 million and $80 million in 2024 and 2023, respectively. The reserve reestimates are included as part of claims and claims expense. The reserve reestimates in 2024 primarily related to new reported information for asbestos related claims and adverse developments within the other run-off lines. The reserve reestimates in 2023 primarily related to new reported information and defense costs for asbestos related claims and other run-off exposures and higher than expected environmental reported losses. We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment. However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable. Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance($ in millions) December 31, 2024December 31, 2023Asbestos claimsGross reserves$1,124 $1,166 Reinsurance (350)(362)Net reserves 774 804 Environmental claimsGross reserves320 331 Reinsurance (61)(64)Net reserves 259 267 Other run-off claimsGross reserves439 445 Reinsurance (58)(72)Net reserves381 373 Total Gross reserves 1,883 1,942 Reinsurance (469)(498)Net reserves$1,414 $1,444 Gross reserves Reinsurance 48 www.allstate.com 48 www.allstate.com 48 www.allstate.com 2024 Form 10-K Run-off Property-Liability 2024 Form 10-K Run-off Property-Liability Reserves by type of exposure before and after the effects of reinsurance($ in millions)December 31, 2024December 31, 2023Direct excess commercial insurance Gross reserves $1,082 $1,114 Reinsurance (363)(382) Net reserves719 732 Assumed reinsurance coverage Gross reserves 581 603 Reinsurance (54)(54) Net reserves527 549 Direct primary commercial insurance Gross reserves 133 140 Reinsurance (51)(61) Net reserves82 79 Other run-off business Gross reserves— 1 Reinsurance— — Net reserves— 1 Unallocated loss adjustment expenses Gross reserves87 84 Reinsurance(1)(1) Net reserves86 83 Total Gross reserves1,883 1,942 Reinsurance(469)(498) Net reserves$1,414 $1,444",
      "prior_body": "The Run-off Property-Liability segment includes results from property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other run-off lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off. We may pursue settlement agreements including policy buybacks on direct excess commercial business when appropriate to improve the certainty of the liabilities. Settlement agreements are negotiated contracts between Allstate and third parties that generally set forth the rights and obligations of the parties, including terms of payment for claims. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. Underwriting resultsFor the years ended December 31,($ in millions)202320222021Claims and claims expense Asbestos claims$(44)$(34)$(63)Environmental claims(18)(56)(40)Other run-off lines(27)(35)(13)Total claims and claims expense(89)(125)(116)Operating costs and expenses(5)(4)(4)Underwriting loss$(94)$(129)$(120) Underwriting losses in 2023 and 2022 primarily related to our annual reserve review using established industry and actuarial best practices. The annual review resulted in unfavorable reserve reestimates totaling $80 million and $118 million in 2023 and 2022, respectively. The reserve reestimates are included as part of claims and claims expense. The reserve reestimates in 2023 primarily related to new reported information and defense costs for asbestos and other run-off exposures and higher than expected environmental reported losses. The reserve reestimates in 2022 primarily related to new reported information and defense costs for asbestos and higher than expected reported losses for environmental and other run-off exposures. We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment. However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable. Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance($ in millions) December 31, 2023December 31, 2022Asbestos claimsGross reserves$1,166 $1,190 Reinsurance (362)(379)Net reserves 804 811 Environmental claimsGross reserves331 328 Reinsurance (64)(61)Net reserves 267 267 Other run-off claimsGross reserves445 437 Reinsurance (72)(64)Net reserves373 373 Total Gross reserves 1,942 1,955 Reinsurance (498)(504)Net reserves$1,444 $1,451 Gross reserves Reinsurance The Allstate Corporation 51 The Allstate Corporation 51 The Allstate Corporation 51 2023 Form 10-K Run-off Property-Liability 2023 Form 10-K Run-off Property-Liability Reserves by type of exposure before and after the effects of reinsurance($ in millions)December 31, 2023December 31, 2022Direct excess commercial insurance Gross reserves $1,114 $1,106 Reinsurance (382)(385) Net reserves732 721 Assumed reinsurance coverage Gross reserves 603 618 Reinsurance (54)(56) Net reserves549 562 Direct primary commercial insurance Gross reserves 140 148 Reinsurance (61)(62) Net reserves79 86 Other run-off business Gross reserves1 1 Reinsurance— — Net reserves1 1 Unallocated loss adjustment expenses Gross reserves84 82 Reinsurance(1)(1) Net reserves83 81 Total Gross reserves1,942 1,955 Reinsurance(498)(504) Net reserves$1,444 $1,451"
    },
    {
      "status": "MODIFIED",
      "current_title": "Reserves and claim activity before (Gross) and after (Net) the effects of reinsurance",
      "prior_title": "Reserves and claim activity before (Gross) and after (Net) the effects of reinsurance",
      "similarity_score": 0.817,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The survival ratio is calculated by taking our ending reserves divided by payments made during the year.\"",
        "Reworded sentence: \"The combined asbestos and environmental net 3-year survival ratio in 2024 increased from 2023 due to lower average payments.\""
      ],
      "current_body": "The survival ratio is calculated by taking our ending reserves divided by payments made during the year. This is a commonly used but simplistic and imprecise approach to measuring the adequacy of asbestos and environmental reserve levels. Many factors, such as mix of business, level of coverage provided and settlement procedures have significant impacts on the amount of environmental and asbestos claims and claims expense reserves, claim payments and the resultant ratio. As payments result in corresponding reserve reductions, survival ratios can be expected to vary over time. The combined asbestos and environmental net 3-year survival ratio in 2024 increased from 2023 due to lower average payments. The Allstate Corporation 55 The Allstate Corporation 55 The Allstate Corporation 55 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense Net asbestos reserves by type of exposure and total reserve additions December 31, 2024December 31, 2023December 31, 2022($ in millions)Net reserves% of reservesNet reserves% of reservesNet reserves% of reservesDirect:Primary$9 1.2 %$9 1.1 %$9 1.1 %Excess261 33.7 263 32.7 257 31.7 Total direct270 34.9 272 33.8 266 32.8 Assumed reinsurance90 11.6 91 11.3 97 12.0 IBNR414 53.5 441 54.9 448 55.2 Total net reserves$774 100.0 %$804 100.0 %$811 100.0 %Total reserve additions$19 $44 $34",
      "prior_body": "58 www.allstate.com 58 www.allstate.com 58 www.allstate.com 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves The survival ratio is calculated by taking our ending reserves divided by payments made during the year. This is a commonly used but simplistic and imprecise approach to measuring the adequacy of asbestos and environmental reserve levels. Many factors, such as mix of business, level of coverage provided and settlement procedures have significant impacts on the amount of environmental and asbestos claims and claims expense reserves, claim payments and the resultant ratio. As payments result in corresponding reserve reductions, survival ratios can be expected to vary over time. The asbestos and environmental net 3-year survival ratio in 2023 increased from 2022 due to lower average payments. Net asbestos reserves by type of exposure and total reserve additions December 31, 2023December 31, 2022December 31, 2021($ in millions)Net reserves% of reservesNet reserves% of reservesNet reserves% of reservesDirect:Primary$9 1 %$9 1 %$8 1 %Excess263 33 257 32 275 33 Total direct272 34 266 33 283 34 Assumed reinsurance91 11 97 12 104 13 IBNR441 55 448 55 441 53 Total net reserves$804 100 %$811 100 %$828 100 %Total reserve additions$44 $34 $63"
    },
    {
      "status": "MODIFIED",
      "current_title": "Gross unrealized gains (losses) on fixed income securities by type and sector",
      "prior_title": "Unrealized net capital gains (losses)",
      "similarity_score": 0.816,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Banking Gross unrealized gains (losses) on fixed income securities by type and sectorAs of December 31, 2023Amortized cost, netGross unrealizedFair value($ in millions)GainsLossesCorporateBanking $4,189 $31 $(135)$4,085 Basic industry1,007 7 (42)972 Capital goods2,800 33 (97)2,736 Communications2,767 33 (115)2,685 Consumer goods (cyclical and non-cyclical)6,813 93 (251)6,655 Energy2,645 35 (63)2,617 Financial services2,111 17 (88)2,040 Technology2,800 21 (153)2,668 Transportation1,104 13 (45)1,072 Utilities5,330 109 (123)5,316 Other385 5 (31)359 Total corporate fixed income portfolio31,951 397 (1,143)31,205 U.S.\""
      ],
      "current_body": "Banking Gross unrealized gains (losses) on fixed income securities by type and sectorAs of December 31, 2023Amortized cost, netGross unrealizedFair value($ in millions)GainsLossesCorporateBanking $4,189 $31 $(135)$4,085 Basic industry1,007 7 (42)972 Capital goods2,800 33 (97)2,736 Communications2,767 33 (115)2,685 Consumer goods (cyclical and non-cyclical)6,813 93 (251)6,655 Energy2,645 35 (63)2,617 Financial services2,111 17 (88)2,040 Technology2,800 21 (153)2,668 Transportation1,104 13 (45)1,072 Utilities5,330 109 (123)5,316 Other385 5 (31)359 Total corporate fixed income portfolio31,951 397 (1,143)31,205 U.S. government and agencies8,624 114 (119)8,619 Municipal6,049 109 (152)6,006 Foreign government1,286 17 (13)1,290 ABS1,739 13 (7)1,745 Total fixed income securities$49,649 $650 $(1,434)$48,865",
      "prior_body": "Equity method of accounting (“EMA”) limited partnerships Gross unrealized gains (losses) on fixed income securities by type and sectorAs of December 31, 2023Amortized cost, netGross unrealizedFair value($ in millions)GainsLossesCorporateBanking (1)$4,189 $31 $(135)$4,085 Basic industry1,007 7 (42)972 Capital goods2,800 33 (97)2,736 Communications2,767 33 (115)2,685 Consumer goods (cyclical and non-cyclical)6,813 93 (251)6,655 Financial services2,111 17 (88)2,040 Energy2,645 35 (63)2,617 Technology2,800 21 (153)2,668 Transportation1,104 13 (45)1,072 Utilities5,330 109 (123)5,316 Other385 5 (31)359 Total corporate fixed income portfolio31,951 397 (1,143)31,205 U.S. government and agencies8,624 114 (119)8,619 Municipal6,049 109 (152)6,006 Foreign government1,286 17 (13)1,290 ABS1,739 13 (7)1,745 Total fixed income securities$49,649 $650 $(1,434)$48,865"
    },
    {
      "status": "MODIFIED",
      "current_title": "Reserve for Property and Casualty Insurance Claims and Claims Expense",
      "prior_title": "Property and Casualty Insurance Claims and Claims Expense Reserves",
      "similarity_score": 0.796,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The facts and circumstances leading to reestimates of reserves relate to claim activity and updates to the development factors used to predict how losses are likely to develop from the end of a reporting period until all claims have been paid.\"",
        "Added sentence: \"For a description of our reserve process, see Note 10 of the consolidated financial statements.\"",
        "Added sentence: \"For a description of our reserving policies and the potential variability in our reserve estimates, see the Application of Critical Accounting Estimates section of the MD&A.\"",
        "Added sentence: \"Reserves are an estimate of amounts necessary to settle all outstanding claims, including IBNR claims, as of the reporting date.\"",
        "Reworded sentence: \"Total claims and claims expense reserves, net of recoverables (“net reserves”), as of December 31($ in millions)202420232022Allstate Protection$31,846 $29,969 $26,876 Run-off Property-Liability1,414 1,444 1,451 Total Property-Liability33,260 31,413 28,327 Protection Services55 49 38 Total net reserves $33,315 $31,462 $28,365 Reserve for property and casualty insurance claims and claims expense$41,917 $39,858 $37,541 Less: reinsurance and indemnification recoverables (1)8,602 8,396 9,176 Total net reserves$33,315 $31,462 $28,365\""
      ],
      "current_body": "Underwriting results are significantly influenced by estimates of claims and claims expense reserves. The facts and circumstances leading to reestimates of reserves relate to claim activity and updates to the development factors used to predict how losses are likely to develop from the end of a reporting period until all claims have been paid. Reestimates occur when actual losses differ from those predicted by the estimated development factors used in prior reserve estimates. For a description of our reserve process, see Note 10 of the consolidated financial statements. For a description of our reserving policies and the potential variability in our reserve estimates, see the Application of Critical Accounting Estimates section of the MD&A. Reserves are an estimate of amounts necessary to settle all outstanding claims, including IBNR claims, as of the reporting date. We believe the net loss reserves exposures are appropriately established based on available facts, laws and regulations. Total claims and claims expense reserves, net of recoverables (“net reserves”), as of December 31($ in millions)202420232022Allstate Protection$31,846 $29,969 $26,876 Run-off Property-Liability1,414 1,444 1,451 Total Property-Liability33,260 31,413 28,327 Protection Services55 49 38 Total net reserves $33,315 $31,462 $28,365 Reserve for property and casualty insurance claims and claims expense$41,917 $39,858 $37,541 Less: reinsurance and indemnification recoverables (1)8,602 8,396 9,176 Total net reserves$33,315 $31,462 $28,365",
      "prior_body": "Underwriting results are significantly influenced by estimates of claims and claims expense reserves. For a description of our reserve process, see Note 9 of the consolidated financial statements. Further, for a description of our reserving policies and the potential variability in our reserve estimates, see the Application of Critical Accounting Estimates section of the MD&A. These reserves are an estimate of amounts necessary to settle all outstanding claims, including IBNR claims, as of the reporting date.The facts and circumstances leading to reestimates of reserves relate to changes in claim activity and revisions to the development factors used to predict how losses are likely to develop from the end of a reporting period until all claims have been paid. Reestimates occur when actual losses differ from those predicted by the estimated development factors used in prior reserve estimates. We believe the net loss reserves exposures are appropriately established based on available facts, laws and regulations. Underwriting results are significantly influenced by estimates of claims and claims expense reserves. For a description of our reserve process, see Note 9 of the consolidated financial statements. Further, for a description of our reserving policies and the potential variability in our reserve estimates, see the Application of Critical Accounting Estimates section of the MD&A. These reserves are an estimate of amounts necessary to settle all outstanding claims, including IBNR claims, as of the reporting date. Underwriting results are significantly influenced by estimates of claims and claims expense reserves. For a description of our reserve process, see Note 9 of the consolidated financial statements. Further, for a description of our reserving policies and the potential variability in our reserve estimates, see the Application of Critical Accounting Estimates section of the MD&A. These reserves are an estimate of amounts necessary to settle all outstanding claims, including IBNR claims, as of the reporting date. The facts and circumstances leading to reestimates of reserves relate to changes in claim activity and revisions to the development factors used to predict how losses are likely to develop from the end of a reporting period until all claims have been paid. Reestimates occur when actual losses differ from those predicted by the estimated development factors used in prior reserve estimates. We believe the net loss reserves exposures are appropriately established based on available facts, laws and regulations. The facts and circumstances leading to reestimates of reserves relate to changes in claim activity and revisions to the development factors used to predict how losses are likely to develop from the end of a reporting period until all claims have been paid. Reestimates occur when actual losses differ from those predicted by the estimated development factors used in prior reserve estimates. We believe the net loss reserves exposures are appropriately established based on available facts, laws and regulations. Total reserves, net of recoverables (“net reserves”), as of December 31($ in millions)202320222021Allstate Protection$29,969 $26,876 $22,124 Run-off Property-Liability1,444 1,451 1,421 Total Property-Liability31,413 28,327 23,545 Protection Services49 38 36 Total net reserves $31,462 $28,365 $23,581 Reserve for property and casualty insurance claims and claims expense$39,858 $37,541 $33,060 Less: reinsurance and indemnification recoverables (1)8,396 9,176 9,479 Total net reserves$31,462 $28,365 $23,581"
    },
    {
      "status": "MODIFIED",
      "current_title": "Performance-based investment income",
      "prior_title": "Performance-based investment income",
      "similarity_score": 0.796,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Performance-based investment income increased 23.8% or $119 million in 2024 compared to 2023, primarily due to private equity valuation increases offset by lower real estate investment results, inclusive of investee level expenses.Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales.\"",
        "Reworded sentence: \"Performance-based investment income increased 23.8% or $119 million in 2024 compared to 2023, primarily due to private equity valuation increases offset by lower real estate investment results, inclusive of investee level expenses.Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market Performance-based investment income increased 23.8% or $119 million in 2024 compared to 2023, primarily due to private equity valuation increases offset by lower real estate investment results, inclusive of investee level expenses.\"",
        "Reworded sentence: \"performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales.\"",
        "Reworded sentence: \"Components of net gains (losses) on investments and derivatives and the related tax effectFor the year December 31,($ in millions)202420232022Sales$(160)$(433)$(832)Credit losses (1)(146)(99)(54)Valuation change of equity investments - appreciation (decline):Equity securities78 239 (772)Equity fund investments in fixed income securities4 43 (128)Limited partnerships (2)13 34 (160)Total valuation of equity investments95 316 (1,060)Valuation change and settlements of derivatives(14)(84)874 Net gains (losses) on investments and derivatives, pre-tax(225)(300)(1,072)Income tax benefit46 63 230 Net gains (losses) on investments and derivatives, after-tax$(179)$(237)$(842)Property-Liability (1)$(181)$(230)$(688)Protection Services(11)— (40)Allstate Health and Benefits(4)2 (35)Corporate and Other17 (9)(79)Net gains (losses) on investments and derivatives, after-tax$(179)$(237)$(842)Market-based (1)$(307)$(352)$(1,083)Performance-based82 52 11 Net gains (losses) on investments and derivatives, pre-tax$(225)$(300)$(1,072)\""
      ],
      "current_body": "Investee level expenses (1) (1)Investee level expenses include asset level operating expenses on directly held real estate and other consolidated investments reported in investment expense. Performance-based investment income increased 23.8% or $119 million in 2024 compared to 2023, primarily due to private equity valuation increases offset by lower real estate investment results, inclusive of investee level expenses.Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. Performance-based investment income increased 23.8% or $119 million in 2024 compared to 2023, primarily due to private equity valuation increases offset by lower real estate investment results, inclusive of investee level expenses.Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market Performance-based investment income increased 23.8% or $119 million in 2024 compared to 2023, primarily due to private equity valuation increases offset by lower real estate investment results, inclusive of investee level expenses. Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. Components of net gains (losses) on investments and derivatives and the related tax effectFor the year December 31,($ in millions)202420232022Sales$(160)$(433)$(832)Credit losses (1)(146)(99)(54)Valuation change of equity investments - appreciation (decline):Equity securities78 239 (772)Equity fund investments in fixed income securities4 43 (128)Limited partnerships (2)13 34 (160)Total valuation of equity investments95 316 (1,060)Valuation change and settlements of derivatives(14)(84)874 Net gains (losses) on investments and derivatives, pre-tax(225)(300)(1,072)Income tax benefit46 63 230 Net gains (losses) on investments and derivatives, after-tax$(179)$(237)$(842)Property-Liability (1)$(181)$(230)$(688)Protection Services(11)— (40)Allstate Health and Benefits(4)2 (35)Corporate and Other17 (9)(79)Net gains (losses) on investments and derivatives, after-tax$(179)$(237)$(842)Market-based (1)$(307)$(352)$(1,083)Performance-based82 52 11 Net gains (losses) on investments and derivatives, pre-tax$(225)$(300)$(1,072)",
      "prior_body": "Investee level expenses (1) (1)Investee level expenses include asset level operating expenses on directly held real estate and other consolidated investments reported in investment expense. Performance-based investment income decreased 51.3% or $525 million in 2023 compared to 2022, primarily due to lower valuation increases compared to the prior year and lower income from the sales of underlying investments.Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. Performance-based investment income decreased 51.3% or $525 million in 2023 compared to 2022, primarily due to lower valuation increases compared to the prior year and lower income from the sales of underlying investments. Performance-based investment income decreased 51.3% or $525 million in 2023 compared to 2022, primarily due to lower valuation increases compared to the prior year and lower income from the sales of underlying investments. Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. Performance-based investment results and income can vary significantly between periods and are influenced by economic conditions, equity market performance, comparable public company earnings multiples, capitalization rates, operating performance of the underlying investments and the timing of asset sales. The company typically employs a lag in recording and recognizing changes in valuations of limited partnership interests due to the availability of investee financial statements. 72 www.allstate.com 72 www.allstate.com 72 www.allstate.com 2023 Form 10-K Investments 2023 Form 10-K Investments Components of net gains (losses) on investments and derivatives and the related tax effectFor the year December 31,($ in millions)202320222021Sales$(433)$(832)$578 Credit losses(99)(54)(42)Valuation change of equity investments - appreciation (decline):Equity securities239 (772)544 Equity fund investments in fixed income securities43 (128)(24)Limited partnerships (1)34 (160)(21)Total valuation of equity investments316 (1,060)499 Valuation change and settlements of derivatives(84)874 49 Net gains (losses) on investments and derivatives, pre-tax(300)(1,072)1,084 Income tax benefit (expense)63 230 (237)Net gains (losses) on investments and derivatives, after-tax$(237)$(842)$847 Property-Liability$(230)$(688)$798 Protection Services— (40)19 Allstate Health and Benefits2 (35)5 Corporate and Other(9)(79)25 Net gains (losses) on investments and derivatives, after-tax$(237)$(842)$847 Market-based$(352)$(1,083)$917 Performance-based52 11 167 Net gains (losses) on investments and derivatives, pre-tax$(300)$(1,072)$1,084"
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk management and strategy",
      "prior_title": "Risk Management and Strategy",
      "similarity_score": 0.794,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"Allstate evaluates candidates for information security positions based on experience and qualifications.\"",
        "Removed sentence: \"Senior leadership, team leads and subject matter experts conduct interviews to identify top candidates who represent the technical and behavioral acumen required of cybersecurity professionals at Allstate.\"",
        "Removed sentence: \"Allstate provides cybersecurity employees with continuing education associated with their roles and responsibilities.\"",
        "Reworded sentence: \"The Information Security Program is aligned with industry best practices and standards including the ISO 27001/27002 standards, the Control Objectives for Information and Related Technologies Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”).\"",
        "Reworded sentence: \"These standards, policies and procedures cover industry-standard information security domains, including risk assessment, third-party supplier risk management, vulnerability management, identity and access management, application security, network security, cybersecurity awareness training, encryption and incident management.Dedicated personnel support information security operations 24 hours per day, seven days per week.\""
      ],
      "current_body": "The Enterprise Risk and Return Council has delegated the power and authority to manage cybersecurity risks to the Information Security Council (“ISC”). The CISO chairs the ISC, with senior management representation from across the Company including representatives from Privacy, Legal and Technology. The ISC monitors, makes mitigating decisions about, and escalates information security risks that are outside the Company’s established risk tolerance. Additionally, it provides executive sponsorship of information security controls and oversees the development and review of the information security policy and enterprise security standards. Information Security Program Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats. The Company’s Program uses a risk-based, defense-in-depth approach to identify, assess and manage cybersecurity risks to the Company’s information assets and systems, enabling the business to achieve its objectives. The Information Security Program is aligned with industry best practices and standards including the ISO 27001/27002 standards, the Control Objectives for Information and Related Technologies Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”). Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats. The Company’s Program uses a risk-based, defense-in-depth approach to identify, assess and manage cybersecurity risks to the Company’s information assets and systems, enabling the business to achieve its objectives. The Information Security Program is aligned with industry best practices and standards including the ISO 27001/27002 standards, the Control Objectives for Information and Related Technologies Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”). Allstate’s Information Security Program outlines the responsibilities and expectations for the security of Allstate information systems. The Program includes standards, policies and procedures requiring the implementation of technical, administrative and physical controls to manage the risk to Allstate information and systems. These standards, policies and procedures cover industry-standard information security domains, including risk assessment, third-party supplier risk management, vulnerability management, identity and access management, application security, network security, cybersecurity awareness training, encryption and incident management.Dedicated personnel support information security operations 24 hours per day, seven days per week. Allstate’s incident response program is designed to detect, respond and recover from a range of cybersecurity-related incidents.Allstate conducts risk and control assessments to proactively identify cybersecurity threats impacting the organization’s business processes. The Company conducts enterprise threat-based risk assessments for multiple aspects of the business, including applications, infrastructure, environments and business processes. Allstate documents the identified risks, tracking them based on potential impact and the likelihood of them occurring.Allstate performs control effectiveness tests, vulnerability scans and penetration tests to assess controls and proactively identify vulnerabilities for prioritization and remediation. Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards.We also have a cybersecurity resiliency strategy that will enhance our ability to anticipate, withstand and recover from cybersecurity attacks and maintain the availability of our critical business operations. Cybersecurity resiliency plans improve our recovery speed to protect Allstate and its customers against adverse impacts due to ransomware and other cybersecurity events.Item 2. PropertiesIn North America, we occupy approximately 685 retail stores, administrative, data processing, claims handling and other support facilities that total 710 thousand square feet owned and 3.9 million square feet leased.Outside North America, we own 1 property in Northern Ireland and lease locations in India, the United Kingdom and Australia.The locations where Allstate exclusive agencies operate in the U.S. are typically leased by the agencies.Item 3. Legal ProceedingsInformation required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 16 of the consolidated financial statements.Item 4. Mine Safety DisclosuresNot applicable. and procedures cover industry-standard information security domains, including risk assessment, third-party supplier risk management, vulnerability management, identity and access management, application security, network security, cybersecurity awareness training, encryption and incident management. Dedicated personnel support information security operations 24 hours per day, seven days per week. Allstate’s incident response program is designed to detect, respond and recover from a range of cybersecurity-related incidents. Allstate conducts risk and control assessments to proactively identify cybersecurity threats impacting the organization’s business processes. The Company conducts enterprise threat-based risk assessments for multiple aspects of the business, including applications, infrastructure, environments and business processes. Allstate documents the identified risks, tracking them based on potential impact and the likelihood of them occurring. Allstate performs control effectiveness tests, vulnerability scans and penetration tests to assess controls and proactively identify vulnerabilities for prioritization and remediation. Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards. We also have a cybersecurity resiliency strategy that will enhance our ability to anticipate, withstand and recover from cybersecurity attacks and maintain the availability of our critical business operations. Cybersecurity resiliency plans improve our recovery speed to protect Allstate and its customers against adverse impacts due to ransomware and other cybersecurity events. Item 2. Properties In North America, we occupy approximately 685 retail stores, administrative, data processing, claims handling and other support facilities that total 710 thousand square feet owned and 3.9 million square feet leased. Outside North America, we own 1 property in Northern Ireland and lease locations in India, the United Kingdom and Australia. The locations where Allstate exclusive agencies operate in the U.S. are typically leased by the agencies. Item 3. Legal Proceedings Information required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 16 of the consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. The Allstate Corporation 31 The Allstate Corporation 31 The Allstate Corporation 31 2024 Form 10-K 2024 Form 10-K Part II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities As of January 31, 2025, there were 54,363 holders of record of The Allstate Corporation’s common stock. The principal market for the common stock is the New York Stock Exchange, where our common stock trades under the trading symbol “ALL”. Our common stock is also listed on the Chicago Stock Exchange. Common stock performance graph The following performance graph compares the cumulative total shareholder return on Allstate common stock for a five-year period (December 31, 2019 to December 31, 2024) with the cumulative total return of the S&P Property and Casualty Insurance Index (S&P P/C) and the S&P 500 stock index. Value at each year-end of $100 initial investment made on December 31, 201912/31/201912/31/202012/31/202112/31/202212/31/202312/31/2024Allstate$100.00 $99.88 $109.75 $129.88 $138.11 $194.19 S&P P/C$100.00 $106.33 $124.95 $148.53 $164.49 $222.43 S&P 500$100.00 $118.39 $152.34 $124.73 $157.48 $196.85",
      "prior_body": "The Enterprise Risk and Return Council has delegated the power and authority to manage cybersecurity risks to the Information Security Council (“ISC”). The CISO chairs the ISC, with senior management representation from across the Company including representatives from Privacy, Legal and Technology. The ISC monitors, makes mitigating decisions about, and escalates information security risks that are outside the Company’s established risk tolerance. Additionally, it provides executive sponsorship of information security controls and oversees the development and review of the information security policy and enterprise security standards. Allstate evaluates candidates for information security positions based on experience and qualifications. Senior leadership, team leads and subject matter experts conduct interviews to identify top candidates who represent the technical and behavioral acumen required of cybersecurity professionals at Allstate. Allstate provides cybersecurity employees with continuing education associated with their roles and responsibilities. Information Security Program Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats. The Company’s Program uses a risk-based, defense-in-depth approach to identify, assess and manage cybersecurity risks to the Company’s information assets and systems, enabling the business to achieve its objectives. The Information Security Program is aligned with industry best practices and standards including the ISO 27001/27002 standards, the Control Objectives for Information and Related Technologies The Allstate Corporation 31 The Allstate Corporation 31 The Allstate Corporation 31 2023 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2023 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”). Allstate conducts risk and control assessments to proactively identify and assess the likelihood and impact of specific information security risks using the NIST CSF. The Company conducts these risk assessments at multiple levels of scope, including applications, business processes, business units, and enterprise. Allstate documents the identified risks, tracking them based on potential impact and the likelihood that harm might occur. The Company manages the risks in accordance with its Information Security Program.Allstate’s Information Security Program outlines the responsibilities and expectations for the security of Allstate information systems. The Program includes standards, policies and procedures requiring the implementation of technical, administrative and physical controls to manage the risk to Allstate information and systems. These standards, policies and procedures cover industry-standard information security domains, including risk assessment, third-party supplier risk management, vulnerability management, identity and access management, application security, network security, cybersecurity awareness training, encryption and incident management.Allstate conducts periodic assessments, designed to evaluate effectiveness of implemented controls. The Company performs vulnerability scans and penetration tests to assess controls and proactively identify vulnerabilities for prioritization and remediation. Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards. Dedicated personnel support information security operations 24 hours per day, seven days per week. Allstate’s incident response program is designed to detect, respond and recover from a range of cybersecurity-related incidents.Item 2. PropertiesIn Illinois, the Company has 11 locations totaling approximately 480 thousand square feet of office space.In North America, we operate from approximately 780 retail stores, administrative, data processing, claims handling and other support facilities that total 710 thousand square feet owned and 4.3 million square feet leased.Outside North America, we own one and lease two properties in Northern Ireland comprising approximately 200 thousand square feet. We also have two leased facilities in India for approximately 500 thousand square feet and two leased facilities in London for approximately seven thousand square feet.The locations where Allstate exclusive agencies operate in the U.S. are typically leased by the agencies.Item 3. Legal ProceedingsInformation required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 15 of the consolidated financial statements.Item 4. Mine Safety DisclosuresNot applicable. Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”). Allstate conducts risk and control assessments to proactively identify and assess the likelihood and impact of specific information security risks using the NIST CSF. The Company conducts these risk assessments at multiple levels of scope, including applications, business processes, business units, and enterprise. Allstate documents the identified risks, tracking them based on potential impact and the likelihood that harm might occur. The Company manages the risks in accordance with its Information Security Program.Allstate’s Information Security Program outlines the responsibilities and expectations for the security of Allstate information systems. The Program includes standards, policies and procedures requiring the implementation of technical, administrative and physical controls to manage the risk to Allstate information and systems. These standards, policies and procedures cover industry-standard information security domains, including risk assessment, third-party supplier risk management, vulnerability management, identity and access management, application security, network security, cybersecurity awareness training, encryption and incident management.Allstate conducts periodic assessments, designed to evaluate effectiveness of implemented controls. The Company performs vulnerability scans and penetration tests to assess controls and proactively identify vulnerabilities for prioritization and remediation. Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards. Dedicated personnel support information security operations 24 hours per day, seven days per week. Allstate’s incident response program is designed to detect, respond and recover from a range of cybersecurity-related incidents. Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”). Allstate conducts risk and control assessments to proactively identify and assess the likelihood and impact of specific information security risks using the NIST CSF. The Company conducts these risk assessments at multiple levels of scope, including applications, business processes, business units, and enterprise. Allstate documents the identified risks, tracking them based on potential impact and the likelihood that harm might occur. The Company manages the risks in accordance with its Information Security Program. Allstate’s Information Security Program outlines the responsibilities and expectations for the security of Allstate information systems. The Program includes standards, policies and procedures requiring the implementation of technical, administrative and physical controls to manage the risk to Allstate information and systems. These standards, policies and procedures cover industry-standard information security domains, including risk assessment, third-party supplier risk management, vulnerability management, identity and access management, application security, network security, cybersecurity awareness training, encryption and incident management. Allstate conducts periodic assessments, designed to evaluate effectiveness of implemented controls. The Company performs vulnerability scans and penetration tests to assess controls and proactively identify vulnerabilities for prioritization and remediation. Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards. Dedicated personnel support information security operations 24 hours per day, seven days per week. Allstate’s incident response program is designed to detect, respond and recover from a range of cybersecurity-related incidents. Item 2. PropertiesIn Illinois, the Company has 11 locations totaling approximately 480 thousand square feet of office space.In North America, we operate from approximately 780 retail stores, administrative, data processing, claims handling and other support facilities that total 710 thousand square feet owned and 4.3 million square feet leased.Outside North America, we own one and lease two properties in Northern Ireland comprising approximately 200 thousand square feet. We also have two leased facilities in India for approximately 500 thousand square feet and two leased facilities in London for approximately seven thousand square feet.The locations where Allstate exclusive agencies operate in the U.S. are typically leased by the agencies.Item 3. Legal ProceedingsInformation required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 15 of the consolidated financial statements.Item 4. Mine Safety DisclosuresNot applicable. Item 2. Properties In Illinois, the Company has 11 locations totaling approximately 480 thousand square feet of office space. In North America, we operate from approximately 780 retail stores, administrative, data processing, claims handling and other support facilities that total 710 thousand square feet owned and 4.3 million square feet leased. Outside North America, we own one and lease two properties in Northern Ireland comprising approximately 200 thousand square feet. We also have two leased facilities in India for approximately 500 thousand square feet and two leased facilities in London for approximately seven thousand square feet. The locations where Allstate exclusive agencies operate in the U.S. are typically leased by the agencies. Item 3. Legal Proceedings Information required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 15 of the consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. 32 www.allstate.com 32 www.allstate.com 32 www.allstate.com 2023 Form 10-K 2023 Form 10-K Part II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities As of January 31, 2024, there were 56,831 holders of record of The Allstate Corporation’s common stock. The principal market for the common stock is the New York Stock Exchange, where our common stock trades under the trading symbol “ALL”. Our common stock is also listed on the Chicago Stock Exchange. Common stock performance graph The following performance graph compares the cumulative total shareholder return on Allstate common stock for a five-year period (December 31, 2018 to December 31, 2023) with the cumulative total return of the S&P Property and Casualty Insurance Index (S&P P/C) and the S&P 500 stock index. Value at each year-end of $100 initial investment made on December 31, 201812/31/201812/31/201912/31/202012/31/202112/31/202212/31/2023Allstate$100.00 $138.82 $138.65 $152.35 $180.29 $191.72 S&P P/C$100.00 $125.87 $133.84 $157.27 $186.95 $207.04 S&P 500$100.00 $131.47 $155.65 $200.29 $163.98 $207.04"
    },
    {
      "status": "MODIFIED",
      "current_title": "Total claims and claims expense reserves, net of recoverables (“net reserves”), as of December 31",
      "prior_title": "Total reserves, net of recoverables (“net reserves”), as of December 31",
      "similarity_score": 0.791,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Run-off Property-Liability Protection Services Less: reinsurance and indemnification recoverables (1) (1)Includes $6.41 billion, $6.36 billion and $6.66 billion of unpaid indemnification recoverables related to the Michigan Catastrophic Claims Association (“MCCA”) as of December 31, 2024, 2023 and 2022, respectively.\""
      ],
      "current_body": "Run-off Property-Liability Protection Services Less: reinsurance and indemnification recoverables (1) (1)Includes $6.41 billion, $6.36 billion and $6.66 billion of unpaid indemnification recoverables related to the Michigan Catastrophic Claims Association (“MCCA”) as of December 31, 2024, 2023 and 2022, respectively. Impact of reserve reestimates on combined ratio and net income applicable to common shareholders (1) (2)202420232022($ in millions, except ratios)Reserve reestimatesEffect on combined ratioReserve reestimatesEffect on combined ratioReserve reestimatesEffect on combined ratioAllstate Protection$(376)(0.7)$461 0.9 $1,619 3.6 Run-off Property-Liability68 0.2 89 0.2 125 0.3 Total Property-Liability(308)(0.5)550 1.1 1,744 3.9 Protection Services— — (1)— (3)— Total $(308)$549 $1,741 Reserve reestimates, after-tax$(243)$434 $1,375 Consolidated net (loss) income applicable to common shareholders$4,550 $(316)$(1,394)Reserve reestimates as a % impact on consolidated net income (loss) applicable to common shareholders5.3 %NM(98.6)%Property-Liability prior year reserve reestimates included in catastrophe losses$(370)$(24)$18",
      "prior_body": "Run-off Property-Liability Protection Services Less: reinsurance and indemnification recoverables (1) (1)Includes $6.36 billion, $6.66 billion and $6.64 billion of unpaid indemnification recoverables related to the Michigan Catastrophic Claims Association (“MCCA”) as of December 31, 2023, 2022 and 2021, respectively. Impact of reserve reestimates by brand on combined ratio and net income applicable to common shareholders(1) (2)202320222021($ in millions, except ratios)Reserve reestimatesEffect on combined ratioReserve reestimatesEffect on combined ratioReserve reestimatesEffect on combined ratioAllstate Protection$461 0.9 $1,619 3.6 $8 — Run-off Property-Liability89 0.2 125 0.3 116 0.3 Total Property-Liability550 1.1 1,744 3.9 124 0.3 Protection Services(1)— (3)— (2)— Total $549 $1,741 $122 Reserve reestimates, after-tax$434 $1,375 $96 Consolidated net (loss) income applicable to common shareholders$(316)$(1,394)$1,500 Reserve reestimates as a % impact on consolidated net (loss) income applicable to common shareholdersNM(98.6)%(6.4)%Property-Liability prior year reserve reestimates included in catastrophe losses$(24)$18 $(202)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Property-Liability Operations",
      "prior_title": "Property-Liability Operations",
      "similarity_score": 0.78,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Loss ratios include the impact of catastrophe losses and prior year reserve reestimates.•Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned.•Combined ratio: the sum of the loss ratio and the expense ratio.We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods.\"",
        "Removed sentence: \"Commercial lines PIF counts for shared economy agreements typically reflect contracts that cover multiple rather than individual drivers.\"",
        "Reworded sentence: \"Average premiums represent the appropriate policy term for each line.•Implemented rate changes: represents the impact in the locations (U.S.\"",
        "Reworded sentence: \"Loss ratios include the impact of catastrophe losses and prior year reserve reestimates.•Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned.•Combined ratio: the sum of the loss ratio and the expense ratio.We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods.\"",
        "Reworded sentence: \"•Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned.\""
      ],
      "current_body": "Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources.We do not allocate Property-Liability 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 level for decision-making purposes.GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows:•Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates.•Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned.•Combined ratio: the sum of the loss ratio and the expense ratio.We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned:•Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense•Effect of prior year reserve reestimates on combined ratio•Effect of amortization of purchased intangibles on combined ratio•Effect of restructuring and related charges on combined ratio•Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segmentPremium measures and statistics are used to analyze our premium trends and are calculated as follows:•PIF: policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Lender-placed policies are excluded from policy counts because relationships are with the lenders. •New issued applications: item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. •Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line.•Implemented rate changes: represents the impact in the locations (U.S. states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written. Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources.We do not allocate Property-Liability 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 level for decision-making purposes.GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows:•Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates.•Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned.•Combined ratio: the sum of the loss ratio and the expense ratio.We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned:•Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense•Effect of prior year reserve reestimates on combined ratio•Effect of amortization of purchased intangibles on combined ratio•Effect of restructuring and related charges on combined ratio•Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources. We do not allocate Property-Liability 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 level for decision-making purposes. GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows: •Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates. •Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges, less other revenue to premiums earned. •Combined ratio: the sum of the loss ratio and the expense ratio. We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned: •Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense •Effect of prior year reserve reestimates on combined ratio •Effect of amortization of purchased intangibles on combined ratio •Effect of restructuring and related charges on combined ratio •Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment Premium measures and statistics are used to analyze our premium trends and are calculated as follows:•PIF: policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Lender-placed policies are excluded from policy counts because relationships are with the lenders. •New issued applications: item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. •Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line.•Implemented rate changes: represents the impact in the locations (U.S. states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written. Premium measures and statistics are used to analyze our premium trends and are calculated as follows: •PIF: policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Lender-placed policies are excluded from policy counts because relationships are with the lenders. •New issued applications: item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. •Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line. •Implemented rate changes: represents the impact in the locations (U.S. states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total prior year-end premiums written. The Allstate Corporation 39 The Allstate Corporation 39 The Allstate Corporation 39 2024 Form 10-K Property-Liability 2024 Form 10-K Property-Liability Underwriting results($ in millions, except ratios)202420232022Premiums written$55,926 $50,347 $45,787 Premiums earned$53,866 $48,427 $43,909 Other revenue1,895 1,545 1,416 Claims and claims expense(39,118)(40,453)(36,732)Amortization of DAC(6,676)(6,070)(5,570)Other costs and expenses(6,630)(5,255)(5,650)Restructuring and related charges (1)(51)(143)(44)Amortization of purchased intangibles(206)(235)(240)Underwriting income (loss)$3,080 $(2,184)$(2,911)Catastrophe lossesCatastrophe losses, excluding reserve reestimates$5,334 $5,660 $3,094 Catastrophe reserve reestimates (2)(370)(24)18 Total catastrophe losses$4,964 $5,636 $3,112 Non-catastrophe reserve reestimates (2)$62 $574 $1,726 Prior year reserve reestimates (2)(308)550 1,744 GAAP operating ratiosLoss ratio72.6 83.5 83.6 Expense ratio (3)21.7 21.0 23.0 Combined ratio94.3 104.5 106.6 Effect of catastrophe losses on combined ratio 9.2 11.6 7.1 Effect of prior year reserve reestimates on combined ratio (0.5)1.2 3.9 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio(0.7)— — Effect of restructuring and related charges on combined ratio (1)0.2 0.3 0.1 Effect of amortization of purchased intangibles on combined ratio0.3 0.5 0.5 Effect of Run-off Property-Liability business on combined ratio0.2 0.2 0.3",
      "prior_body": "Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources.We do not allocate Property-Liability 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 level for decision-making purposes.GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows:•Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates.•Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles, restructuring and related charges and Shelter-in-Place Payback expense, less other revenue to premiums earned.•Combined ratio: the sum of the loss ratio and the expense ratio.We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned:•Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense•Effect of prior year reserve reestimates on combined ratio•Effect of amortization of purchased intangibles on combined ratio•Effect of restructuring and related charges on combined ratio•Effect of Shelter-in-Place Payback expense on combined and expense ratios•Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segmentPremium measures and statistics are used to analyze our premium trends and are calculated as follows:•PIF: policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Commercial lines PIF counts for shared economy agreements typically reflect contracts that cover multiple rather than individual drivers. Lender-placed policies are excluded from policy counts because relationships are with the lenders. •New issued applications: item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. •Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line.•Renewal ratio: renewal policy item counts issued during the period, based on contract effective dates, divided by the total policy item counts issued generally 6 months prior for auto or 12 months prior for homeowners.•Implemented rate changes: represents the impact in the locations (U.S. states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total brand prior year-end premiums written.Frequency and severity statistics, which are influenced by driving patterns, inflation and other factors, are provided to describe the trends in loss costs. Our reserving process incorporates changes in loss patterns, operational statistics and changes in claims reporting processes to determine our best estimate of recorded reserves. We use the following statistics to evaluate losses:•Gross claim frequency is calculated as annualized notice counts, excluding counts associated with catastrophe events, received in the period divided by the average of PIF with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment).•Report year incurred claim severity is calculated by dividing the sum of recorded estimated incurred losses and allocated loss adjustment expenses, excluding catastrophes, by the reported notice counts during that report year. Report year incurred claim severity does not include incurred Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources.We do not allocate Property-Liability 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 level for decision-making purposes.GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows:•Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates.•Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles, restructuring and related charges and Shelter-in-Place Payback expense, less other revenue to premiums earned.•Combined ratio: the sum of the loss ratio and the expense ratio.We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned:•Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense•Effect of prior year reserve reestimates on combined ratio•Effect of amortization of purchased intangibles on combined ratio•Effect of restructuring and related charges on combined ratio•Effect of Shelter-in-Place Payback expense on combined and expense ratios•Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment Overview Property-Liability operations consist of two reportable segments: Allstate Protection and Run-off Property-Liability. These segments are consistent with the groupings of financial information that management uses to evaluate performance and to determine the allocation of resources. We do not allocate Property-Liability 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 level for decision-making purposes. GAAP operating ratios are used to measure our profitability to enhance an investor’s understanding of our financial results and are calculated as follows: •Loss ratio: the ratio of claims and claims expense (loss adjustment expenses), to premiums earned. Loss ratios include the impact of catastrophe losses and prior year reserve reestimates. •Expense ratio: the ratio of amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles, restructuring and related charges and Shelter-in-Place Payback expense, less other revenue to premiums earned. •Combined ratio: the sum of the loss ratio and the expense ratio. We have also calculated the following impacts of specific items on the GAAP operating ratios because of the volatility of these items between periods. The impacts are calculated by taking the specific items noted below divided by Property-Liability premiums earned: •Effect of catastrophe losses on combined ratio: includes catastrophe losses and prior year reserve reestimates of catastrophe losses included in claims and claims expense •Effect of prior year reserve reestimates on combined ratio •Effect of amortization of purchased intangibles on combined ratio •Effect of restructuring and related charges on combined ratio •Effect of Shelter-in-Place Payback expense on combined and expense ratios •Effect of Run-off Property-Liability business on combined ratio: includes claims and claims expense, restructuring and related charges and operating costs and expenses in the Run-off Property-Liability segment Premium measures and statistics are used to analyze our premium trends and are calculated as follows:•PIF: policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Commercial lines PIF counts for shared economy agreements typically reflect contracts that cover multiple rather than individual drivers. Lender-placed policies are excluded from policy counts because relationships are with the lenders. •New issued applications: item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. •Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line.•Renewal ratio: renewal policy item counts issued during the period, based on contract effective dates, divided by the total policy item counts issued generally 6 months prior for auto or 12 months prior for homeowners.•Implemented rate changes: represents the impact in the locations (U.S. states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total brand prior year-end premiums written.Frequency and severity statistics, which are influenced by driving patterns, inflation and other factors, are provided to describe the trends in loss costs. Our reserving process incorporates changes in loss patterns, operational statistics and changes in claims reporting processes to determine our best estimate of recorded reserves. We use the following statistics to evaluate losses:•Gross claim frequency is calculated as annualized notice counts, excluding counts associated with catastrophe events, received in the period divided by the average of PIF with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment).•Report year incurred claim severity is calculated by dividing the sum of recorded estimated incurred losses and allocated loss adjustment expenses, excluding catastrophes, by the reported notice counts during that report year. Report year incurred claim severity does not include incurred Premium measures and statistics are used to analyze our premium trends and are calculated as follows: •PIF: policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Commercial lines PIF counts for shared economy agreements typically reflect contracts that cover multiple rather than individual drivers. Lender-placed policies are excluded from policy counts because relationships are with the lenders. •New issued applications: item counts of automobile or homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate brand. •Average premium-gross written (“average premium”): gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line. •Renewal ratio: renewal policy item counts issued during the period, based on contract effective dates, divided by the total policy item counts issued generally 6 months prior for auto or 12 months prior for homeowners. •Implemented rate changes: represents the impact in the locations (U.S. states, the District of Columbia or Canadian provinces) where rate changes were implemented during the period as a percentage of total brand prior year-end premiums written. Frequency and severity statistics, which are influenced by driving patterns, inflation and other factors, are provided to describe the trends in loss costs. Our reserving process incorporates changes in loss patterns, operational statistics and changes in claims reporting processes to determine our best estimate of recorded reserves. We use the following statistics to evaluate losses: •Gross claim frequency is calculated as annualized notice counts, excluding counts associated with catastrophe events, received in the period divided by the average of PIF with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). •Report year incurred claim severity is calculated by dividing the sum of recorded estimated incurred losses and allocated loss adjustment expenses, excluding catastrophes, by the reported notice counts during that report year. Report year incurred claim severity does not include incurred The Allstate Corporation 41 The Allstate Corporation 41 The Allstate Corporation 41 2023 Form 10-K Property-Liability 2023 Form 10-K Property-Liability but not reported (“IBNR”) losses or benefits from subrogation and salvage.•Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period.•Percent change in frequency or paid claim severity statistics are calculated as the amount of increase or decrease in gross claim frequency or paid claim severity in the current period compared to the same period in the prior year divided by the prior year gross claim frequency or paid claim severity.•Percent change in report year incurred claim severity statistic is calculated as the amount of increase or decrease in report year incurred claim severity recorded in the current year divided by the current estimate of the prior report year incurred claim severity. but not reported (“IBNR”) losses or benefits from subrogation and salvage.•Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period.•Percent change in frequency or paid claim severity statistics are calculated as the amount of increase or decrease in gross claim frequency or paid claim severity in the current period compared to the but not reported (“IBNR”) losses or benefits from subrogation and salvage. •Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period. •Percent change in frequency or paid claim severity statistics are calculated as the amount of increase or decrease in gross claim frequency or paid claim severity in the current period compared to the same period in the prior year divided by the prior year gross claim frequency or paid claim severity.•Percent change in report year incurred claim severity statistic is calculated as the amount of increase or decrease in report year incurred claim severity recorded in the current year divided by the current estimate of the prior report year incurred claim severity. same period in the prior year divided by the prior year gross claim frequency or paid claim severity. •Percent change in report year incurred claim severity statistic is calculated as the amount of increase or decrease in report year incurred claim severity recorded in the current year divided by the current estimate of the prior report year incurred claim severity. Underwriting results($ in millions, except ratios)202320222021Premiums written$50,347 $45,787 $41,358 Premiums earned$48,427 $43,909 $40,454 Other revenue1,545 1,416 1,437 Claims and claims expense(40,453)(36,732)(28,876)Shelter-in-Place Payback expense— — (29)Amortization of DAC(6,070)(5,570)(5,313)Other costs and expenses(5,255)(5,650)(5,622)Restructuring and related charges (1)(143)(44)(145)Amortization of purchased intangibles(235)(240)(241)Underwriting (loss) income$(2,184)$(2,911)$1,665 Catastrophe lossesCatastrophe losses, excluding reserve reestimates$5,660 $3,094 $3,541 Catastrophe reserve reestimates (2)(24)18 (202)Total catastrophe losses$5,636 $3,112 $3,339 Non-catastrophe reserve reestimates (2)$574 $1,726 $326 Prior year reserve reestimates (2)550 1,744 124 GAAP operating ratiosLoss ratio83.5 83.6 71.4 Expense ratio (3)21.0 23.0 24.5 Combined ratio104.5 106.6 95.9 Effect of catastrophe losses on combined ratio 11.6 7.1 8.3 Effect of prior year reserve reestimates on combined ratio 1.2 3.9 0.3 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio— — (0.5)Effect of restructuring and related charges on combined ratio (1)0.3 0.1 0.4 Effect of amortization of purchased intangibles on combined ratio0.5 0.5 0.6 Effect of Shelter-in-Place Payback expense on combined and expense ratios— — 0.1 Effect of Run-off Property-Liability business on combined ratio0.2 0.3 0.3"
    },
    {
      "status": "MODIFIED",
      "current_title": "Impact of reserve reestimates on combined ratio and net income applicable to common shareholders (1) (2)",
      "prior_title": "Impact of reserve reestimates by brand on combined ratio and net income applicable to common shareholders(1) (2)",
      "similarity_score": 0.773,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Run-off Property-Liability Protection Services Reserve reestimates as a % impact on consolidated net income (loss) applicable to common shareholders (1)Favorable reserve reestimates are shown in parentheses.\"",
        "Reworded sentence: \"NM = not meaningful The Allstate Corporation 53 The Allstate Corporation 53 The Allstate Corporation 53 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense The following tables reflect the accident years to which the reestimates shown above are applicable.\"",
        "Reworded sentence: \"Prior year reserve reestimates($ in millions)20242019 & prior2020202120222023TotalAllstate Protection$228 $80 $276 $444 $(1,404)$(376)Run-off Property-Liability68 — — — — 68 Total Property-Liability296 80 276 444 (1,404)(308)Protection Services— — — — — — Total$296 $80 $276 $444 $(1,404)$(308)20232018 & prior2019202020212022TotalAllstate Protection$230 $130 $84 $401 $(384)$461 Run-off Property-Liability89 — — — — 89 Total Property-Liability319 130 84 401 (384)550 Protection Services— — — — (1)(1)Total$319 $130 $84 $401 $(385)$549 20222017 & prior2018201920202021TotalAllstate Protection$27 $161 $294 $345 $792 $1,619 Run-off Property-Liability125 — — — — 125 Total Property-Liability152 161 294 345 792 1,744 Protection Services— — — — (3)(3)Total$152 $161 $294 $345 $789 $1,741 2024 Run-off Property-Liability Protection Services 2023 Run-off Property-Liability Protection Services 2022 Run-off Property-Liability Protection Services\""
      ],
      "current_body": "Run-off Property-Liability Protection Services Reserve reestimates as a % impact on consolidated net income (loss) applicable to common shareholders (1)Favorable reserve reestimates are shown in parentheses. (2)Ratios are calculated using property and casualty premiums earned. NM = not meaningful The Allstate Corporation 53 The Allstate Corporation 53 The Allstate Corporation 53 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense The following tables reflect the accident years to which the reestimates shown above are applicable. Favorable reserve reestimates are shown in parentheses. Prior year reserve reestimates($ in millions)20242019 & prior2020202120222023TotalAllstate Protection$228 $80 $276 $444 $(1,404)$(376)Run-off Property-Liability68 — — — — 68 Total Property-Liability296 80 276 444 (1,404)(308)Protection Services— — — — — — Total$296 $80 $276 $444 $(1,404)$(308)20232018 & prior2019202020212022TotalAllstate Protection$230 $130 $84 $401 $(384)$461 Run-off Property-Liability89 — — — — 89 Total Property-Liability319 130 84 401 (384)550 Protection Services— — — — (1)(1)Total$319 $130 $84 $401 $(385)$549 20222017 & prior2018201920202021TotalAllstate Protection$27 $161 $294 $345 $792 $1,619 Run-off Property-Liability125 — — — — 125 Total Property-Liability152 161 294 345 792 1,744 Protection Services— — — — (3)(3)Total$152 $161 $294 $345 $789 $1,741 2024 Run-off Property-Liability Protection Services 2023 Run-off Property-Liability Protection Services 2022 Run-off Property-Liability Protection Services",
      "prior_body": "Run-off Property-Liability Protection Services (1)Favorable reserve reestimates are shown in parentheses. (2)Ratios are calculated using property and casualty premiums earned. NM = not meaningful 56 www.allstate.com 56 www.allstate.com 56 www.allstate.com 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves The following tables reflect the accident years to which the reestimates shown above are applicable. Favorable reserve reestimates are shown in parentheses. Prior year reserve reestimates($ in millions)20232018 & prior2019202020212022TotalAllstate Protection$230 $130 $84 $401 $(384)$461 Run-off Property-Liability89 — — — — 89 Total Property-Liability319 130 84 401 (384)550 Protection Services— — — — (1)(1)Total$319 $130 $84 $401 $(385)$549 20222017 & prior2018201920202021TotalAllstate Protection$27 $161 $294 $345 $792 $1,619 Run-off Property-Liability125 — — — — 125 Total Property-Liability152 161 294 345 792 1,744 Protection Services— — — — (3)(3)Total$152 $161 $294 $345 $789 $1,741 20212016 & prior2017201820192020TotalAllstate Protection$(130)$100 $(67)$231 $(126)$8 Run-off Property-Liability116 — — — — 116 Total Property-Liability(14)100 (67)231 (126)124 Protection Services— — — — (2)(2)Total$(14)$100 $(67)$231 $(128)$122 2023 Run-off Property-Liability Protection Services 2022 Run-off Property-Liability Protection Services 2021 Run-off Property-Liability Protection Services"
    },
    {
      "status": "MODIFIED",
      "current_title": "Reserves by type of exposure before and after the effects of reinsurance",
      "prior_title": "Reserves by type of exposure before and after the effects of reinsurance",
      "similarity_score": 0.772,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Gross reserves Gross reserves Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)December 31, 2024December 31, 2023CaseIBNRCaseIBNRDirect excess commercial insurance Gross reserves (1)58 %42 %57 %43 %Ceded (2)62 38 63 37 Assumed reinsurance coverageGross reserves 34 66 32 68 Ceded 51 49 43 57 Direct primary commercial insuranceGross reserves54 46 59 41 Ceded87 13 83 17\""
      ],
      "current_body": "Gross reserves Gross reserves Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)December 31, 2024December 31, 2023CaseIBNRCaseIBNRDirect excess commercial insurance Gross reserves (1)58 %42 %57 %43 %Ceded (2)62 38 63 37 Assumed reinsurance coverageGross reserves 34 66 32 68 Ceded 51 49 43 57 Direct primary commercial insuranceGross reserves54 46 59 41 Ceded87 13 83 17",
      "prior_body": "Gross reserves Gross reserves Percentage of gross and ceded reserves by case and IBNRDecember 31, 2023December 31, 2022CaseIBNRCaseIBNRDirect excess commercial insurance Gross reserves (1)57 %43 %58 %42 %Ceded (2)63 37 63 37 Assumed reinsurance coverageGross reserves 32 68 31 69 Ceded 43 57 33 67 Direct primary commercial insuranceGross reserves59 41 57 43 Ceded83 17 81 19"
    },
    {
      "status": "MODIFIED",
      "current_title": "Auto underwriting results",
      "prior_title": "Auto underwriting results",
      "similarity_score": 0.759,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"2024 2023 2022 Frequency and severity are influenced by:•Supply chain disruptions and labor shortages•Mix of repairable losses and total losses•Value of total losses due to changes in used car prices•Changes in medical inflation and consumption•Number of claims with attorney representation•Labor and part cost increases•Changes in commuting activity•Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types•Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods The quarterly auto loss ratio has been more variable due to these and additional factors discussed below.\"",
        "Reworded sentence: \"Auto loss ratio decreased 10.1 points in 2024 compared to 2023 driven by increased earned premiums and lower non-catastrophe losses compared to the prior year.\""
      ],
      "current_body": "2024 2023 2022 Frequency and severity are influenced by:•Supply chain disruptions and labor shortages•Mix of repairable losses and total losses•Value of total losses due to changes in used car prices•Changes in medical inflation and consumption•Number of claims with attorney representation•Labor and part cost increases•Changes in commuting activity•Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types•Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods The quarterly auto loss ratio has been more variable due to these and additional factors discussed below. Frequency and severity are influenced by:•Supply chain disruptions and labor shortages•Mix of repairable losses and total losses•Value of total losses due to changes in used car prices•Changes in medical inflation and consumption•Number of claims with attorney representation•Labor and part cost increases•Changes in commuting activity•Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types Frequency and severity are influenced by: •Supply chain disruptions and labor shortages •Mix of repairable losses and total losses •Value of total losses due to changes in used car prices •Changes in medical inflation and consumption •Number of claims with attorney representation •Labor and part cost increases •Changes in commuting activity •Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types •Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods The quarterly auto loss ratio has been more variable due to these and additional factors discussed below. •Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods The quarterly auto loss ratio has been more variable due to these and additional factors discussed below. 44 www.allstate.com 44 www.allstate.com 44 www.allstate.com 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection Auto loss ratio decreased 10.1 points in 2024 compared to 2023 driven by increased earned premiums and lower non-catastrophe losses compared to the prior year. Estimated report year 2024 incurred claim severity for Allstate increased compared to report year 2023 for major coverages due to higher repair costs, a higher mix of total losses, an increase in claims with attorney representation, higher medical consumption, and inflation. Gross claim frequency decreased relative to the prior year. We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections, accelerating resolution of bodily injury claims, and negotiating improved vendor services and parts agreements.Homeowners loss ratio decreased 17.3 points in 2024 compared to 2023, primarily due to increased premiums earned and lower losses.Gross claim frequency decreased in 2024 compared to 2023 primarily due to fewer claims reported related to water and fire perils. Paid claim severity increased in 2024 compared to 2023 due to inflationary loss cost pressure driven by increases in labor and materials costs. Homeowner paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the period.Other personal lines loss ratio increased 3.9 points in 2024 compared to 2023, primarily due to higher losses and unfavorable reserve development, partially offset by increased premiums earned.Commercial lines loss ratio increased 5.7 points in 2024 compared to 2023 primarily due to lower premiums earned driven by Allstate brand strategy changes and unfavorable reserve development related to the shared economy business, partially offset by lower non-catastrophe losses.Other business lines loss ratio increased 7.4 points in 2024 compared to 2023 primarily due to higher losses.Catastrophe losses decreased 11.9% or $672 million in 2024 compared to 2023 primarily due to lower losses per event for wind and hail events, partially offset by higher losses from hurricanes. Favorable prior year reserve reestimates of $370 million in 2024 were primarily due to reserve reestimates in homeowners lines for 2023 events.We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first-party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes. We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. Auto loss ratio decreased 10.1 points in 2024 compared to 2023 driven by increased earned premiums and lower non-catastrophe losses compared to the prior year. Estimated report year 2024 incurred claim severity for Allstate increased compared to report year 2023 for major coverages due to higher repair costs, a higher mix of total losses, an increase in claims with attorney representation, higher medical consumption, and inflation. Gross claim frequency decreased relative to the prior year. We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections, accelerating resolution of bodily injury claims, and negotiating improved vendor services and parts agreements.Homeowners loss ratio decreased 17.3 points in 2024 compared to 2023, primarily due to increased premiums earned and lower losses.Gross claim frequency decreased in 2024 compared to 2023 primarily due to fewer claims reported related to water and fire perils. Paid claim severity increased in 2024 compared to 2023 due to inflationary loss cost pressure driven by increases in labor and materials costs. Homeowner paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the period.Other personal lines loss ratio increased 3.9 points in 2024 compared to 2023, primarily due to higher losses and unfavorable reserve development, partially offset by increased premiums earned.Commercial lines loss ratio increased 5.7 points in 2024 compared to 2023 primarily due to lower Auto loss ratio decreased 10.1 points in 2024 compared to 2023 driven by increased earned premiums and lower non-catastrophe losses compared to the prior year. Estimated report year 2024 incurred claim severity for Allstate increased compared to report year 2023 for major coverages due to higher repair costs, a higher mix of total losses, an increase in claims with attorney representation, higher medical consumption, and inflation. Gross claim frequency decreased relative to the prior year. We continue to enhance our claims practices to manage loss costs by increasing resources and expanding re-inspections, accelerating resolution of bodily injury claims, and negotiating improved vendor services and parts agreements. Homeowners loss ratio decreased 17.3 points in 2024 compared to 2023, primarily due to increased premiums earned and lower losses. Gross claim frequency decreased in 2024 compared to 2023 primarily due to fewer claims reported related to water and fire perils. Paid claim severity increased in 2024 compared to 2023 due to inflationary loss cost pressure driven by increases in labor and materials costs. Homeowner paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the period. Other personal lines loss ratio increased 3.9 points in 2024 compared to 2023, primarily due to higher losses and unfavorable reserve development, partially offset by increased premiums earned. Commercial lines loss ratio increased 5.7 points in 2024 compared to 2023 primarily due to lower premiums earned driven by Allstate brand strategy changes and unfavorable reserve development related to the shared economy business, partially offset by lower non-catastrophe losses.Other business lines loss ratio increased 7.4 points in 2024 compared to 2023 primarily due to higher losses.Catastrophe losses decreased 11.9% or $672 million in 2024 compared to 2023 primarily due to lower losses per event for wind and hail events, partially offset by higher losses from hurricanes. Favorable prior year reserve reestimates of $370 million in 2024 were primarily due to reserve reestimates in homeowners lines for 2023 events.We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first-party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes. We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. premiums earned driven by Allstate brand strategy changes and unfavorable reserve development related to the shared economy business, partially offset by lower non-catastrophe losses. Other business lines loss ratio increased 7.4 points in 2024 compared to 2023 primarily due to higher losses. Catastrophe losses decreased 11.9% or $672 million in 2024 compared to 2023 primarily due to lower losses per event for wind and hail events, partially offset by higher losses from hurricanes. Favorable prior year reserve reestimates of $370 million in 2024 were primarily due to reserve reestimates in homeowners lines for 2023 events. We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first-party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes. We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. Catastrophe losses by the type of eventFor the years ended December 31,($ in millions)Number of events2024Number of events2023Number of events2022Hurricanes/tropical storms5 $1,180 3 $66 2 $399 Tornadoes2 85 4 189 4 192 Wind/hail113 3,832 136 5,065 106 1,936 Wildfires10 71 4 335 9 52 Freeze/other events2 166 2 5 3 515 Prior year reserve reestimates (1)(370)(24)18 Total catastrophe losses132 $4,964 149 $5,636 124 $3,112",
      "prior_body": "Frequency and severity are influenced by:•Supply chain disruptions and labor shortages•Mix of repairable losses and total losses•Value of total losses due to changes in used car prices•Changes in medical inflation and consumption•Number of claims with attorney representation•Labor and part costs•Changes in commuting activity•Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types•Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods The quarterly auto loss ratio has been more variable due to these and additional factors discussed below.Auto loss ratio decreased 4.4 points in 2023 compared to 2022 driven by increased earned premium compared to the prior year. Estimated report year 2023 incurred claim severity for Allstate brand, excluding Esurance and Canada, had a weighted average increase of between 8% to 9% compared to report year 2022 for major coverages due to higher part costs and labor rates for repairable vehicles, a higher mix of total losses, higher costs for claims with attorney representation, higher medical consumption and inflation. Gross claim frequency increased relative to the prior year. We are enhancing our claims practices to manage loss costs by increasing resources and expanding re-inspections, accelerating resolution of bodily injury claims, and negotiating improved vendor services and parts agreements. Frequency and severity are influenced by:•Supply chain disruptions and labor shortages•Mix of repairable losses and total losses•Value of total losses due to changes in used car prices•Changes in medical inflation and consumption•Number of claims with attorney representation•Labor and part costs•Changes in commuting activity•Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types•Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods Frequency and severity are influenced by: •Supply chain disruptions and labor shortages •Mix of repairable losses and total losses •Value of total losses due to changes in used car prices •Changes in medical inflation and consumption •Number of claims with attorney representation •Labor and part costs •Changes in commuting activity •Driving behavior (e.g., speed, time of day) impacting severity and mix of claim types •Organizational and process changes impacting claim opening and closing practices and shifts in timing, if any, can impact comparisons to prior periods The quarterly auto loss ratio has been more variable due to these and additional factors discussed below.Auto loss ratio decreased 4.4 points in 2023 compared to 2022 driven by increased earned premium compared to the prior year. Estimated report year 2023 incurred claim severity for Allstate brand, excluding Esurance and Canada, had a weighted average increase of between 8% to 9% compared to report year 2022 for major coverages due to higher part costs and labor rates for repairable vehicles, a higher mix of total losses, higher costs for claims with attorney representation, higher medical consumption and inflation. Gross claim frequency increased relative to the prior year. We are enhancing our claims practices to manage loss costs by increasing resources and expanding re-inspections, accelerating resolution of bodily injury claims, and negotiating improved vendor services and parts agreements. The quarterly auto loss ratio has been more variable due to these and additional factors discussed below. Auto loss ratio decreased 4.4 points in 2023 compared to 2022 driven by increased earned premium compared to the prior year. Estimated report year 2023 incurred claim severity for Allstate brand, excluding Esurance and Canada, had a weighted average increase of between 8% to 9% compared to report year 2022 for major coverages due to higher part costs and labor rates for repairable vehicles, a higher mix of total losses, higher costs for claims with attorney representation, higher medical consumption and inflation. Gross claim frequency increased relative to the prior year. We are enhancing our claims practices to manage loss costs by increasing resources and expanding re-inspections, accelerating resolution of bodily injury claims, and negotiating improved vendor services and parts agreements. The Allstate Corporation 47 The Allstate Corporation 47 The Allstate Corporation 47 2023 Form 10-K Allstate Protection 2023 Form 10-K Allstate Protection Homeowners loss ratio increased 14.3 points in 2023 compared to 2022, primarily due to higher catastrophe losses and severity, partially offset by increased premiums earned.Allstate brand homeowners frequency and severity statistics (excluding catastrophe losses)(% change year-over-year)For the year ended December 31, 2023Gross claim frequency(4.2)%Paid claim severity11.8 Gross claim frequency decreased in 2023 compared to 2022 primarily due to fire and water perils. Paid claim severity increased in 2023 compared to 2022 due to inflationary loss cost pressure driven by increases in labor and materials costs. Homeowner paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the period.Other personal lines loss ratio increased 2.3 points in 2023 compared to 2022, primarily due to higher catastrophe losses and increased severity, partially offset by increased premiums earned.Commercial lines loss ratio decreased 14.9 points in 2023 compared to 2022 primarily due to the result of profitability actions taken and lower unfavorable reserve reestimates, partially offset by continued elevated frequency and severity.Other business lines loss ratio increased 8.9 points in 2023 compared to 2022 primarily due to higher non-catastrophe losses and unfavorable prior year reserve reestimates.Catastrophe losses increased 81.1% or $2.52 billion in 2023 compared to 2022 primarily related to an increased number of wind/hail events and larger losses per event.Reinsurance recoveries in 2021 related to the Nationwide Aggregate Reinsurance Program for aggregate catastrophe losses occurring between April 1, 2020 and December 31, 2020, which primarily impacted homeowners prior year reserve reestimates.We define a “catastrophe” as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Catastrophes are caused by various natural events including high winds, winter storms and freezes, tornadoes, hailstorms, wildfires, tropical storms, tsunamis, hurricanes, earthquakes and volcanoes. We are also exposed to man-made catastrophic events, such as certain types of terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted. Homeowners loss ratio increased 14.3 points in 2023 compared to 2022, primarily due to higher catastrophe losses and severity, partially offset by increased premiums earned.Allstate brand homeowners frequency and severity statistics (excluding catastrophe losses)(% change year-over-year)For the year ended December 31, 2023Gross claim frequency(4.2)%Paid claim severity11.8 Gross claim frequency decreased in 2023 compared to 2022 primarily due to fire and water perils. Paid claim severity increased in 2023 compared to 2022 due to inflationary loss cost pressure driven by increases in labor and materials costs. Homeowner paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the period.Other personal lines loss ratio increased 2.3 points in 2023 compared to 2022, primarily due to higher catastrophe losses and increased severity, partially offset by increased premiums earned.Commercial lines loss ratio decreased 14.9 points in 2023 compared to 2022 primarily due to the result of profitability actions taken and lower unfavorable reserve reestimates, partially offset by continued elevated frequency and severity. Homeowners loss ratio increased 14.3 points in 2023 compared to 2022, primarily due to higher catastrophe losses and severity, partially offset by increased premiums earned."
    },
    {
      "status": "MODIFIED",
      "current_title": "DAC balance as of December 31 by product type",
      "prior_title": "DAC balance as of December 31 by product type",
      "similarity_score": 0.731,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The Allstate Corporation 47 The Allstate Corporation 47 The Allstate Corporation 47 2024 Form 10-K Run-off Property-Liability 2024 Form 10-K Run-off Property-Liability\""
      ],
      "current_body": "The Allstate Corporation 47 The Allstate Corporation 47 The Allstate Corporation 47 2024 Form 10-K Run-off Property-Liability 2024 Form 10-K Run-off Property-Liability",
      "prior_body": "50 www.allstate.com 50 www.allstate.com 50 www.allstate.com 2023 Form 10-K Run-off Property-Liability 2023 Form 10-K Run-off Property-Liability"
    },
    {
      "status": "MODIFIED",
      "current_title": "prior year reserve reestimates",
      "prior_title": "prior year reserve reestimates",
      "similarity_score": 0.726,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Auto underwriting resultsFor the periods ended202420232022($ in millions, except ratios)Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Underwriting income (loss)$603 $486 $370 $351 $93 $(178)$(678)$(346)$(974)$(1,315)$(578)$(147)Loss ratio69.3 71.9 74.2 75.4 78.5 81.4 87.9 83.4 90.6 95.3 84.9 77.6 Effect of prior year non-catastrophe reserve reestimates(0.4)(0.6)(1.9)(0.7)1.7 0.3 1.4 (0.1)2.3 8.5 3.8 2.1\""
      ],
      "current_body": "Auto underwriting resultsFor the periods ended202420232022($ in millions, except ratios)Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Underwriting income (loss)$603 $486 $370 $351 $93 $(178)$(678)$(346)$(974)$(1,315)$(578)$(147)Loss ratio69.3 71.9 74.2 75.4 78.5 81.4 87.9 83.4 90.6 95.3 84.9 77.6 Effect of prior year non-catastrophe reserve reestimates(0.4)(0.6)(1.9)(0.7)1.7 0.3 1.4 (0.1)2.3 8.5 3.8 2.1",
      "prior_body": "Auto underwriting resultsFor the periods ended202320222021($ in millions, except ratios)Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Underwriting income (loss)$93 $(178)$(678)$(346)$(974)$(1,315)$(578)$(147)$(300)$(159)$394 $1,327 Loss ratio78.5 81.4 87.9 83.4 90.6 95.3 84.9 77.6 78.9 76.9 68.7 57.2 Effect of prior year non-catastrophe reserve reestimates1.7 0.3 1.4 (0.1)2.3 8.5 3.8 2.1 2.1 1.1 (0.4)(0.2)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs",
      "prior_title": "Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (2)",
      "similarity_score": 0.723,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"October: 271 November: 5,140 December: 2,908 Item 6.\""
      ],
      "current_body": "(1)In accordance with the terms of its equity compensation plans, Allstate acquired the following shares in connection with the vesting of restricted stock units and performance stock awards and the exercise of stock options held by employees and/or directors. The shares were acquired in satisfaction of withholding taxes due upon exercise or vesting and in payment of the exercise price of the options. October: 271 November: 5,140 December: 2,908 Item 6. [Reserved] None. The Allstate Corporation 33 The Allstate Corporation 33 The Allstate Corporation 33 2024 Form 10-K 2024 Form 10-K Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Page2024 Highlights35Property-Liability Operations39Allstate Protection 41Run-off Property-Liability48Protection Services51Reserve for Property and Casualty Insurance Claims and Claims Expense53Allstate Health and Benefits60Investments62Market Risk71Capital Resources and Liquidity73Enterprise Risk and Return Management78Application of Critical Accounting Estimates81Regulation and Legal Proceedings91Pending Accounting Standards91 Page 2024 Highlights 35 Property-Liability Operations 39 Allstate Protection 41 Run-off Property-Liability 48 Protection Services 51 Reserve for Property and Casualty Insurance Claims and Claims Expense 53 Allstate Health and Benefits 60 Investments 62 Market Risk 71 Capital Resources and Liquidity 73 Enterprise Risk and Return Management 78 Application of Critical Accounting Estimates 81 Regulation and Legal Proceedings 91 Pending Accounting Standards 91 34 www.allstate.com 34 www.allstate.com 34 www.allstate.com 2024 Form 10-K 2024 Form 10-K",
      "prior_body": "(1)In accordance with the terms of its equity compensation plans, Allstate acquired the following shares in connection with the vesting of restricted stock units and performance stock awards and the exercise of stock options held by employees and/or directors. The shares were acquired in satisfaction of withholding taxes due upon exercise or vesting and in payment of the exercise price of the options. October: 329 November: 125,437 December: 2,798 (2)In August 2021, we announced the approval of a common share repurchase program for $5 billion. In July 2023, we suspended repurchasing shares under the current authorization. The authorization for the share repurchase program expires on March 31, 2024. The Inflation Reduction Act, enacted in August 2022, imposes a 1% excise tax on stock repurchases occurring after December 31, 2022. The excise tax on common stock repurchases is classified as an additional cost of the stock acquired included in treasury stock in shareholders’ equity. Item 6. [Reserved] None. 34 www.allstate.com 34 www.allstate.com 34 www.allstate.com 2023 Form 10-K 2023 Form 10-K Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Page2023 Highlights36Property-Liability Operations41Allstate Protection 43Run-off Property-Liability51Protection Services54Property and Casualty Insurance Claims and Claims Expense Reserves56Allstate Health and Benefits63Investments65Market Risk74Capital Resources and Liquidity77Enterprise Risk and Return Management82Application of Critical Accounting Estimates85Regulation and Legal Proceedings96Pending Accounting Standards96 Page 2023 Highlights 36 Property-Liability Operations 41 Allstate Protection 43 Run-off Property-Liability 51 Protection Services 54 Property and Casualty Insurance Claims and Claims Expense Reserves 56 Allstate Health and Benefits 63 Investments 65 Market Risk 74 Capital Resources and Liquidity 77 Enterprise Risk and Return Management 82 Application of Critical Accounting Estimates 85 Regulation and Legal Proceedings 96 Pending Accounting Standards 96 The Allstate Corporation 35 The Allstate Corporation 35 The Allstate Corporation 35 2023 Form 10-K 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Underwriting results",
      "prior_title": "Underwriting results",
      "similarity_score": 0.723,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Restructuring and related charges (1) Catastrophe reserve reestimates (2) Non-catastrophe reserve reestimates (2) Prior year reserve reestimates (2) Expense ratio (3) Effect of prior year reserve reestimates on combined ratio Effect of restructuring and related charges on combined ratio (1) (1)Restructuring and related charges in 2024 primarily relate to the organizational transformation component of the Transformative Growth plan.\"",
        "Reworded sentence: \"40 www.allstate.com 40 www.allstate.com 40 www.allstate.com 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection\""
      ],
      "current_body": "Restructuring and related charges (1) Catastrophe reserve reestimates (2) Non-catastrophe reserve reestimates (2) Prior year reserve reestimates (2) Expense ratio (3) Effect of prior year reserve reestimates on combined ratio Effect of restructuring and related charges on combined ratio (1) (1)Restructuring and related charges in 2024 primarily relate to the organizational transformation component of the Transformative Growth plan. See Note 15 of the consolidated financial statements for additional details. (2)Favorable reserve reestimates are shown in parentheses. (3)Other revenue is deducted from operating costs and expenses in the expense ratio calculation. 40 www.allstate.com 40 www.allstate.com 40 www.allstate.com 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection",
      "prior_body": "Shelter-in-Place Payback expense Restructuring and related charges (1) Catastrophe reserve reestimates (2) Non-catastrophe reserve reestimates (2) Prior year reserve reestimates (2) Expense ratio (3) Effect of prior year reserve reestimates on combined ratio Effect of restructuring and related charges on combined ratio (1) (1)Restructuring and related charges in 2023 primarily relate to implementing actions to streamline the organization and outsource operations, and real estate costs related to facilities being vacated. See Note 14 of the consolidated financial statements for additional details. (2)Favorable reserve reestimates are shown in parentheses. (3)Other revenue is deducted from operating costs and expenses in the expense ratio calculation. 42 www.allstate.com 42 www.allstate.com 42 www.allstate.com 2023 Form 10-K Allstate Protection 2023 Form 10-K Allstate Protection"
    },
    {
      "status": "MODIFIED",
      "current_title": "Allstate Protection Segment",
      "prior_title": "Allstate Protection Segment",
      "similarity_score": 0.722,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Private passenger auto, homeowners, and other personal lines insurance products are offered to consumers through exclusive agents, independent agents and directly to the consumer through contact centers and online.\"",
        "Reworded sentence: \"Underwriting results For the years ended December 31,($ in millions)202420232022Premiums written$55,926 $50,347 $45,787 Premiums earned$53,866 $48,427 $43,909 Other revenue1,895 1,545 1,416 Claims and claims expense(39,050)(40,364)(36,607)Amortization of DAC(6,676)(6,070)(5,570)Other costs and expenses(6,625)(5,251)(5,646)Restructuring and related charges(51)(142)(44)Amortization of purchased intangibles(206)(235)(240)Underwriting income (loss)$3,153 $(2,090)$(2,782)Catastrophe losses$4,964 $5,636 $3,112\""
      ],
      "current_body": "Private passenger auto, homeowners, and other personal lines insurance products are offered to consumers through exclusive agents, independent agents and directly to the consumer through contact centers and online. Our strategy is to offer products that allow customers to interact with us when, where and how they want affordable, simple and connected protection products. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. Underwriting results For the years ended December 31,($ in millions)202420232022Premiums written$55,926 $50,347 $45,787 Premiums earned$53,866 $48,427 $43,909 Other revenue1,895 1,545 1,416 Claims and claims expense(39,050)(40,364)(36,607)Amortization of DAC(6,676)(6,070)(5,570)Other costs and expenses(6,625)(5,251)(5,646)Restructuring and related charges(51)(142)(44)Amortization of purchased intangibles(206)(235)(240)Underwriting income (loss)$3,153 $(2,090)$(2,782)Catastrophe losses$4,964 $5,636 $3,112",
      "prior_body": "Private passenger auto, homeowners, and other personal lines insurance products are offered to consumers through agents, directly through contact centers and online. Our strategy is to offer products that allow customers to interact with us when, where and how they want with affordable, simple and connected protection products. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. Underwriting results For the years ended December 31,($ in millions)202320222021Premiums written$50,347 $45,787 $41,358 Premiums earned$48,427 $43,909 $40,454 Other revenue1,545 1,416 1,437 Claims and claims expense(40,364)(36,607)(28,760)Shelter-in-Place Payback expense— — (29)Amortization of DAC(6,070)(5,570)(5,313)Other costs and expenses(5,251)(5,646)(5,618)Restructuring and related charges(142)(44)(145)Amortization of purchased intangibles(235)(240)(241)Underwriting (loss) income$(2,090)$(2,782)$1,785 Catastrophe losses$5,636 $3,112 $3,339"
    },
    {
      "status": "MODIFIED",
      "current_title": "Protection Services Segment",
      "prior_title": "Protection Services Segment",
      "similarity_score": 0.722,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Protection Services is comprised of Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection.\"",
        "Reworded sentence: \"Summarized financial informationFor the years ended December 31,($ in millions)202420232022Premiums written$2,797 $2,663 $2,699 RevenuesPremiums $2,522 $2,243 $1,995 Other revenue441 319 347 Intersegment insurance premiums and service fees (1)180 138 149 Net investment income94 73 48 Costs and expensesClaims and claims expense(641)(632)(532)Amortization of DAC(1,217)(1,058)(928)Operating costs and expenses(1,090)(889)(874)Restructuring and related charges(2)(6)(2)Income tax expense on operations(71)(83)(35)Less: noncontrolling interest(1)(1)(1)Adjusted net income$217 $106 $169 Allstate Protection Plans $157 $117 $150 Allstate Dealer Services21 (15)35 Allstate Roadside39 24 7 Arity(8)(18)(11)Allstate Identity Protection 8 (2)(12)Adjusted net income$217 $106 $169 Policies in forceAllstate Protection Plans159,761 145,292 138,726 Allstate Dealer Services3,710 3,776 3,865 Allstate Roadside758 553 531 Allstate Identity Protection2,511 2,884 3,112 Policies in force as of December 31 (in thousands)166,740 152,505 146,234\""
      ],
      "current_body": "Protection Services is comprised of Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection. In 2024, Protection Services represented 80.0% of total PIF and 4.8% of premiums written. We offer consumer product protection plans, automotive protection and insurance products (including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel and paintless dent repair protection), roadside assistance, mobility data collection services and analytic solutions using automotive telematics information and identity theft protection and remediation services. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. Summarized financial informationFor the years ended December 31,($ in millions)202420232022Premiums written$2,797 $2,663 $2,699 RevenuesPremiums $2,522 $2,243 $1,995 Other revenue441 319 347 Intersegment insurance premiums and service fees (1)180 138 149 Net investment income94 73 48 Costs and expensesClaims and claims expense(641)(632)(532)Amortization of DAC(1,217)(1,058)(928)Operating costs and expenses(1,090)(889)(874)Restructuring and related charges(2)(6)(2)Income tax expense on operations(71)(83)(35)Less: noncontrolling interest(1)(1)(1)Adjusted net income$217 $106 $169 Allstate Protection Plans $157 $117 $150 Allstate Dealer Services21 (15)35 Allstate Roadside39 24 7 Arity(8)(18)(11)Allstate Identity Protection 8 (2)(12)Adjusted net income$217 $106 $169 Policies in forceAllstate Protection Plans159,761 145,292 138,726 Allstate Dealer Services3,710 3,776 3,865 Allstate Roadside758 553 531 Allstate Identity Protection2,511 2,884 3,112 Policies in force as of December 31 (in thousands)166,740 152,505 146,234",
      "prior_body": "Protection Services comprise Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection. In 2023, Protection Services represented 78.5% of total PIF and 5.0% of premiums written. We offer consumer product protection plans, protection and insurance products (including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel and paintless dent repair protection), roadside assistance, device and mobile data collection services and analytic solutions using automotive telematics information, identity theft protection and remediation services. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. Summarized financial informationFor the years ended December 31,($ in millions)202320222021Premiums written$2,663 $2,699 $2,642 RevenuesPremiums $2,243 $1,995 $1,764 Other revenue319 347 354 Intersegment insurance premiums and service fees (1)138 149 175 Net investment income73 48 43 Costs and expensesClaims and claims expense(632)(532)(458)Amortization of DAC(1,058)(928)(795)Operating costs and expenses(889)(874)(837)Restructuring and related charges(6)(2)(14)Income tax expense on operations(83)(35)(52)Less: noncontrolling interest(1)(1)1 Adjusted net income$106 $169 $179 Allstate Protection Plans $117 $150 $142 Allstate Dealer Services(15)35 34 Allstate Roadside24 7 7 Arity(18)(11)3 Allstate Identity Protection (2)(12)(7)Adjusted net income$106 $169 $179 Allstate Protection Plans145,292 138,726 141,073 Allstate Dealer Services3,776 3,865 3,956 Allstate Roadside553 531 525 Allstate Identity Protection2,884 3,112 2,802 Policies in force as of December 31 (in thousands)152,505 146,234 148,356"
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidated net income (loss) applicable to common shareholders",
      "prior_title": "Consolidated net income (loss) applicable to common shareholders",
      "similarity_score": 0.718,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Consolidated net income applicable to common shareholders was $4.55 billion in 2024 compared to net loss of $316 million in 2023, primarily due to improved underwriting results from increased earned premium and improved loss trends.For the twelve months ended December 31, 2024, return on average Allstate common shareholders’ equity was 25.8% compared to (2.0)% for the twelve months ended December 31, 2023.\""
      ],
      "current_body": "Consolidated net income applicable to common shareholders was $4.55 billion in 2024 compared to net loss of $316 million in 2023, primarily due to improved underwriting results from increased earned premium and improved loss trends.For the twelve months ended December 31, 2024, return on average Allstate common shareholders’ equity was 25.8% compared to (2.0)% for the twelve months ended December 31, 2023. Consolidated net income applicable to common shareholders was $4.55 billion in 2024 compared to net loss of $316 million in 2023, primarily due to improved underwriting results from increased earned premium and improved loss trends.For the twelve months ended December 31, 2024, return on average Allstate common shareholders’ equity was 25.8% compared to (2.0)% for the twelve months ended December 31, 2023. Consolidated net income applicable to common shareholders was $4.55 billion in 2024 compared to net loss of $316 million in 2023, primarily due to improved underwriting results from increased earned premium and improved loss trends.For the twelve months ended December 31, 2024, return on average Allstate common shareholders’ equity was 25.8% compared to (2.0)% for the twelve months ended December 31, 2023. Consolidated net income applicable to common shareholders was $4.55 billion in 2024 compared to net loss of $316 million in 2023, primarily due to improved underwriting results from increased earned premium and improved loss trends. For the twelve months ended December 31, 2024, return on average Allstate common shareholders’ equity was 25.8% compared to (2.0)% for the twelve months ended December 31, 2023. Total revenue($ in millions)",
      "prior_body": "Consolidated net loss applicable to common shareholders was $316 million in 2023 compared to net loss of $1.39 billion in 2022, primarily due to improved underwriting results and net gains on equity valuations compared to losses in 2022.For the twelve months ended December 31, 2023, return on Allstate common shareholders’ equity was (2.0)% compared to (7.2)% for the twelve months ended December 31, 2022. Consolidated net loss applicable to common shareholders was $316 million in 2023 compared to net loss of $1.39 billion in 2022, primarily due to improved underwriting results and net gains on equity valuations compared to losses in 2022.For the twelve months ended December 31, 2023, return on Allstate common shareholders’ equity was (2.0)% compared to (7.2)% for the twelve months ended December 31, 2022. Consolidated net loss applicable to common shareholders was $316 million in 2023 compared to net loss of $1.39 billion in 2022, primarily due to improved underwriting results and net gains on equity valuations compared to losses in 2022.For the twelve months ended December 31, 2023, return on Allstate common shareholders’ equity was (2.0)% compared to (7.2)% for the twelve months ended December 31, 2022. Consolidated net loss applicable to common shareholders was $316 million in 2023 compared to net loss of $1.39 billion in 2022, primarily due to improved underwriting results and net gains on equity valuations compared to losses in 2022. For the twelve months ended December 31, 2023, return on Allstate common shareholders’ equity was (2.0)% compared to (7.2)% for the twelve months ended December 31, 2022. Total revenue($ in millions)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Macroeconomic impacts",
      "prior_title": "Macroeconomic Impacts",
      "similarity_score": 0.713,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"government fiscal and monetary policies, conflict in the Middle East, the Russia/Ukraine conflict, supply chain disruptions, labor shortages and potential trade policy actions, such as tariffs and quotas.\"",
        "Reworded sentence: \"Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect the business and results of operations”.\"",
        "Reworded sentence: \"Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2024 results.\""
      ],
      "current_body": "Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, conflict in the Middle East, the Russia/Ukraine conflict, supply chain disruptions, labor shortages and potential trade policy actions, such as tariffs and quotas. These factors should be considered when comparing the current period to prior periods. Macroeconomic impacts are disclosed in Part 1 “Item 1A. Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect the business and results of operations”. This is not inclusive of all potential impacts and should not be treated as such. Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2024 results.",
      "prior_body": "Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, banking system instability, the Russia/Ukraine and Israel/Hamas conflicts and the remaining impacts of the Novel Coronavirus Pandemic or COVID-19 (“Coronavirus”), such as supply chain disruptions, labor shortages and other macroeconomic factors that have increased inflation. Inflation continues to remain elevated, which led to increases in interest rates by the Federal Reserve and many foreign governmental authorities and central banks. These actions could create significant economic uncertainty. Market volatility resulting from these factors and from disruptions in the banking industry have and may continue to impact our investment valuations and returns. These factors have affected our operations and may continue to significantly affect our results of operations, financial condition and liquidity and should be considered when comparing the current period to prior periods. Macroeconomic impacts are disclosed in Part 1 “Item 1A. Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, social unrest or other actions may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect our business and results of operations”. This is not inclusive of all potential impacts and should not be treated as such. Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2023 results.Israel/Hamas ConflictAs of December 31, 2023, we have approximately $47 million investment exposure in the Middle East, of which approximately $43 million is held in Israel, which is primarily indirect exposure through funds managed by external asset managers. Russia/Ukraine ConflictThe Russia-Ukraine war and related sanctions imposed as a result of this conflict have increased global economic and political uncertainty, including inflationary pressures and an increased risk of cybersecurity incidents. Allstate does not have operations or direct investments in Russia, Belarus or Ukraine, but we could experience significant indirect impacts on the investment portfolio, financial position, or results of operations. 2023 Operating Priorities and ResultsAllstate continued to focus on its operating priorities while executing a comprehensive plan to improve auto insurance profitability. The table below summarizes the results of our 2023 Operating Priorities. of operations”. This is not inclusive of all potential impacts and should not be treated as such. Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2023 results."
    },
    {
      "status": "MODIFIED",
      "current_title": "Gross payments from case reserves by type of exposure",
      "prior_title": "Gross payments from case reserves by type of exposure",
      "similarity_score": 0.706,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Gross (1) Ceded (2) Gross (1) In 2024 and 2023, 87% and 85% of payments related to settlement agreements, respectively.\"",
        "Reworded sentence: \"Reinsurance collections were $39 million and $35 million for 2024 and 2023, respectively.\""
      ],
      "current_body": "Gross (1) Ceded (2) Gross (1) In 2024 and 2023, 87% and 85% of payments related to settlement agreements, respectively. (2) In 2024 and 2023, 93% and 83% of payments related to settlement agreements, respectively. Total net reserves as of December 31, 2024, included $723 million or 51% of estimated IBNR reserves compared to $762 million or 53% of estimated IBNR reserves as of December 31, 2023. Total gross payments were $118 million and $124 million for 2024 and 2023, respectively. Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon. The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds. Reinsurance collections were $39 million and $35 million for 2024 and 2023, respectively. The allowance for uncollectible reinsurance recoverables was $61 million and $59 million as of December 31, 2024 and 2023, respectively. The allowance represents 11.3% and 10.3% of the related reinsurance recoverable balances as of December 31, 2024 and 2023, respectively. 50 www.allstate.com 50 www.allstate.com 50 www.allstate.com 2024 Form 10-K Protection Services 2024 Form 10-K Protection Services",
      "prior_body": "Gross (1) Ceded (2) Gross (1) In 2023 and 2022, 85% and 88% of payments related to settlement agreements, respectively. (2) In 2023 and 2022, 83% and 94% of payments related to settlement agreements, respectively. Total net reserves as of December 31, 2023, included $762 million or 53% of estimated IBNR reserves compared to $765 million or 53% of estimated IBNR reserves as of December 31, 2022.Total gross payments were $124 million and $125 million for 2023 and 2022, respectively. Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon. The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds. Reinsurance collections were $35 million and $37 million for 2023 and 2022, respectively. The allowance for uncollectible reinsurance recoverables was $59 million and $58 million as of December 31, 2023 and 2022, respectively. The allowance represents 10.3% and 10.0% of the related reinsurance recoverable balances as of December 31, 2023 and 2022, respectively. Total net reserves as of December 31, 2023, included $762 million or 53% of estimated IBNR reserves compared to $765 million or 53% of estimated IBNR reserves as of December 31, 2022.Total gross payments were $124 million and $125 million for 2023 and 2022, respectively. Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon. The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds. Total net reserves as of December 31, 2023, included $762 million or 53% of estimated IBNR reserves compared to $765 million or 53% of estimated IBNR reserves as of December 31, 2022. Total gross payments were $124 million and $125 million for 2023 and 2022, respectively. Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon. The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds. Reinsurance collections were $35 million and $37 million for 2023 and 2022, respectively. The allowance for uncollectible reinsurance recoverables was $59 million and $58 million as of December 31, 2023 and 2022, respectively. The allowance represents 10.3% and 10.0% of the related reinsurance recoverable balances as of December 31, 2023 and 2022, respectively. Reinsurance collections were $35 million and $37 million for 2023 and 2022, respectively. The allowance for uncollectible reinsurance recoverables was $59 million and $58 million as of December 31, 2023 and 2022, respectively. The allowance represents 10.3% and 10.0% of the related reinsurance recoverable balances as of December 31, 2023 and 2022, respectively. The Allstate Corporation 53 The Allstate Corporation 53 The Allstate Corporation 53 2023 Form 10-K Protection Services 2023 Form 10-K Protection Services"
    },
    {
      "status": "MODIFIED",
      "current_title": "Segment highlights",
      "prior_title": "Segment Highlights",
      "similarity_score": 0.705,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Allstate Protection underwriting income was $3.15 billion in 2024 compared to an underwriting loss of $2.09 billion in 2023, primarily due to increased premiums earned, favorable reserve reestimates and lower losses, partially offset by higher advertising costs.\""
      ],
      "current_body": "Allstate Protection underwriting income was $3.15 billion in 2024 compared to an underwriting loss of $2.09 billion in 2023, primarily due to increased premiums earned, favorable reserve reestimates and lower losses, partially offset by higher advertising costs. Premiums written increased 11.1% to $55.93 billion in 2024 compared to $50.35 billion in 2023, reflecting higher premiums in auto and homeowners insurance. Protection Services adjusted net income was $217 million in 2024 compared to $106 million in 2023. The increase in 2024 was due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was also negatively impacted by an increase in state income taxes for Allstate Dealer Services. Premiums and other revenues increased 15.7% or $401 million to $2.96 billion in 2024 from $2.56 billion in 2023 primarily due to Allstate Protection Plans. Allstate Health and Benefits adjusted net income was $186 million in 2024 compared to $242 million in 2023. The decrease was primarily due to increased benefit utilization across all lines of business. Premiums and contract charges totaled $1.92 billion in 2024, an increase of 4.1% from $1.85 billion in 2023, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.Income taxesThe effective tax rate is the ratio of income tax expense (benefit) divided by income (loss) from operations before income tax expense. For the year ended December 31, 2024, we reported an effective tax rate of 20.2% based on total income tax expense of $1.16 billion on total income from operations before income tax expense of $5.76 billion. The effective rate in 2024 is lower than the federal statutory rate of 21%, primarily due to tax benefits derived from tax credits, tax-exempt interest income, and share-based payments, offset by state income tax expense.For the year ended December 31, 2023, we reported an effective tax rate of 38.8% based on a total income tax benefit of $135 million on the loss from operations before income tax benefit of $348 million. The effective tax rate in 2023 was higher than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, tax-exempt interest income and shared-based payments, offset by a change in valuation allowance and uncertain tax positions.For additional information, see Note 17 of the consolidated financial statements. Premiums and contract charges totaled $1.92 billion in 2024, an increase of 4.1% from $1.85 billion in 2023, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.",
      "prior_body": "Allstate Protection underwriting loss was $2.09 billion in 2023 compared to underwriting loss of $2.78 billion in 2022, due to increased premiums earned and lower unfavorable non-catastrophe reserve reestimates, partially offset by higher incurred losses and higher catastrophe losses of $5.64 billion in 2023 compared to $3.11 billion in 2022. Premiums written increased 10.0% to $50.35 billion in 2023 compared to $45.79 billion in 2022, reflecting higher premiums in both Allstate and National General brands. Protection Services adjusted net income was $106 million in 2023 compared to $169 million in 2022. The decrease in 2023 was due to higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection. Adjusted net income was also impacted by an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services. Premiums and other revenues increased 9.4% or $220 million to $2.56 billion in 2023 from $2.34 billion in 2022 primarily due to Allstate Protection Plans. Allstate Health and Benefits adjusted net income was $242 million in 2023 compared to $245 million in 2022. The decrease was primarily due to a decline in employer voluntary benefits, partially offset by increases in individual and group health.Premiums and contract charges totaled $1.85 billion in 2023, an increase of 0.8% from $1.83 billion in 2022 primarily due to growth in group health, partially offset by a decline in employer voluntary benefits and individual health.Income TaxesThe effective tax rate is the ratio of income tax (benefit) expense divided by (loss) income from operations before income tax expense. The effective tax rate for 2023 was 38.8% compared to 26.7% in 2022 due to the total income tax benefit measured against a lower loss from operations before income tax expense of $348 million in 2023 compared to a loss of $1.83 billion in 2022. In both years, the effective tax rate was higher than the 21% federal statutory income tax rate, primarily due to tax credits, tax-exempt interest income and excess tax benefits on shared-based payments, offset by a change in valuation allowance and uncertain tax positions. In addition, in 2023, the Company recorded an additional tax benefit arising from the liquidation of a foreign subsidiary and the remeasurement of state deferred income taxes. The Allstate Health and Benefits adjusted net income was $242 million in 2023 compared to $245 million in 2022. The decrease was primarily due to a decline in employer voluntary benefits, partially offset by increases in individual and group health. Premiums and contract charges totaled $1.85 billion in 2023, an increase of 0.8% from $1.83 billion in 2022 primarily due to growth in group health, partially offset by a decline in employer voluntary benefits and individual health."
    },
    {
      "status": "MODIFIED",
      "current_title": "Percentage to total",
      "prior_title": "Percentage to total",
      "similarity_score": 0.691,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Amortized cost, net for these securities was $50.02 billion, $1.91 billion, $370 million, $1.32 billion and $53.62 billion for Property-Liability, Protection Services, Allstate Health and Benefits, Corporate and Other, and in total, respectively.\"",
        "Reworded sentence: \"The fair value of equity securities held as of December 31, 2024 was $134 million in excess of cost.\"",
        "Reworded sentence: \"Equity securities include $750 million of funds with underlying investments in fixed income securities as of December 31, 2024.\"",
        "Reworded sentence: \"Investments totaled $72.61 billion as of December 31, 2024, increasing from $66.68 billion as of December 31, 2023, primarily due to positive operating and investment cash flows.\""
      ],
      "current_body": "(1)Balances reflect the elimination of related party investments between segments. (2)Fixed income securities are carried at fair value. Amortized cost, net for these securities was $50.02 billion, $1.91 billion, $370 million, $1.32 billion and $53.62 billion for Property-Liability, Protection Services, Allstate Health and Benefits, Corporate and Other, and in total, respectively. (3)Equity securities are carried at fair value. The fair value of equity securities held as of December 31, 2024 was $134 million in excess of cost. These net gains were primarily concentrated in the technology and banking sectors. Equity securities include $750 million of funds with underlying investments in fixed income securities as of December 31, 2024. (4)Short-term investments are carried at fair value. Investments totaled $72.61 billion as of December 31, 2024, increasing from $66.68 billion as of December 31, 2023, primarily due to positive operating and investment cash flows. Portfolio composition by investment strategyAs of December 31, 2024($ in millions)Market-basedPerformance-basedTotalFixed income securities$52,610 $137 $52,747 Equity securities3,797 666 4,463 Mortgage loans, net784 — 784 Limited partnership interests285 8,970 9,255 Short-term investments4,537 — 4,537 Other investments, net137 687 824 Total$62,150 $10,460 $72,610 Percent to total85.6 %14.4 %100.0 %Unrealized net capital gains and lossesFixed income securities$(867)$(2)$(869)Limited partnership interests— — — Short-term investments(2)— (2)Other investments(2)— (2)Total$(871)$(2)$(873)",
      "prior_body": "(1)Balances reflect the elimination of related party investments between segments. (2)Fixed income securities are carried at fair value. Amortized cost, net for these securities was $44.06 billion, $1.85 billion, $1.91 billion, $1.83 billion and $49.65 billion for Property-Liability, Protection Services, Allstate Health and Benefits, Corporate and Other, and in total, respectively. (3)Equity securities are carried at fair value. The fair value of equity securities held as of December 31, 2023 was $167 million in excess of cost. These net gains were primarily concentrated in the technology and banking sectors. Equity securities include $1.02 billion of funds with underlying investments in fixed income securities as of December 31, 2023. (4)Short-term investments are carried at fair value. Investments totaled $66.68 billion as of December 31, 2023, increasing from $61.83 billion as of December 31, 2022, primarily due to positive operating cash flows, higher fixed income valuations and to support higher reserves, partially offset by dividends paid to shareholders and common share repurchases. 66 www.allstate.com 66 www.allstate.com 66 www.allstate.com 2023 Form 10-K Investments 2023 Form 10-K Investments Portfolio composition by investment strategyAs of December 31, 2023($ in millions)Market-basedPerformance-basedTotalFixed income securities$48,749 $116 $48,865 Equity securities1,768 643 2,411 Mortgage loans, net822 — 822 Limited partnership interests141 8,239 8,380 Short-term investments5,144 — 5,144 Other investments, net310 745 1,055 Total$56,934 $9,743 $66,677 Percent to total85.4 %14.6 %100.0 %Unrealized net capital gains and lossesFixed income securities$(784)$— $(784)Limited partnership interests— (4)(4)Short-term investments(1)— (1)Other investments(2)— (2)Total$(787)$(4)$(791)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Summarized financial results",
      "prior_title": "Summarized financial results",
      "similarity_score": 0.69,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Years Ended December 31,($ in millions)202420232022Revenues Property and casualty insurance premiums$56,388 $50,670 $45,904 Accident and health insurance premiums and contract charges1,921 1,846 1,832 Other revenue2,930 2,400 2,344 Net investment income 3,092 2,478 2,403 Net gains (losses) on investments and derivatives (225)(300)(1,072)Total revenues64,106 57,094 51,411 Costs and expenses Property and casualty insurance claims and claims expense(39,735)(41,070)(37,264)Accident, health and other policy benefits(1,241)(1,071)(1,042)Amortization of deferred policy acquisition costs(8,039)(7,278)(6,634)Operating, restructuring and interest expenses(9,087)(7,685)(7,832)Pension and other postretirement remeasurement gains (losses)37 (9)(116)Amortization of purchased intangibles(280)(329)(353)Total costs and expenses(58,345)(57,442)(53,241)Income (loss) from operations before income tax expense5,761 (348)(1,830)Income tax (expense) benefit(1,162)135 488 Net income (loss)4,599 (213)(1,342)Less: Net loss attributable to noncontrolling interest(68)(25)(53)Net income (loss) attributable to Allstate4,667 (188)(1,289)Preferred stock dividends(117)(128)(105)Net income (loss) applicable to common shareholders$4,550 $(316)$(1,394) Net gains (losses) on investments and derivatives Segment highlightsAllstate Protection underwriting income was $3.15 billion in 2024 compared to an underwriting loss of $2.09 billion in 2023, primarily due to increased premiums earned, favorable reserve reestimates and lower losses, partially offset by higher advertising costs.Premiums written increased 11.1% to $55.93 billion in 2024 compared to $50.35 billion in 2023, reflecting higher premiums in auto and homeowners insurance.Protection Services adjusted net income was $217 million in 2024 compared to $106 million in 2023.\""
      ],
      "current_body": "Years Ended December 31,($ in millions)202420232022Revenues Property and casualty insurance premiums$56,388 $50,670 $45,904 Accident and health insurance premiums and contract charges1,921 1,846 1,832 Other revenue2,930 2,400 2,344 Net investment income 3,092 2,478 2,403 Net gains (losses) on investments and derivatives (225)(300)(1,072)Total revenues64,106 57,094 51,411 Costs and expenses Property and casualty insurance claims and claims expense(39,735)(41,070)(37,264)Accident, health and other policy benefits(1,241)(1,071)(1,042)Amortization of deferred policy acquisition costs(8,039)(7,278)(6,634)Operating, restructuring and interest expenses(9,087)(7,685)(7,832)Pension and other postretirement remeasurement gains (losses)37 (9)(116)Amortization of purchased intangibles(280)(329)(353)Total costs and expenses(58,345)(57,442)(53,241)Income (loss) from operations before income tax expense5,761 (348)(1,830)Income tax (expense) benefit(1,162)135 488 Net income (loss)4,599 (213)(1,342)Less: Net loss attributable to noncontrolling interest(68)(25)(53)Net income (loss) attributable to Allstate4,667 (188)(1,289)Preferred stock dividends(117)(128)(105)Net income (loss) applicable to common shareholders$4,550 $(316)$(1,394) Net gains (losses) on investments and derivatives Segment highlightsAllstate Protection underwriting income was $3.15 billion in 2024 compared to an underwriting loss of $2.09 billion in 2023, primarily due to increased premiums earned, favorable reserve reestimates and lower losses, partially offset by higher advertising costs.Premiums written increased 11.1% to $55.93 billion in 2024 compared to $50.35 billion in 2023, reflecting higher premiums in auto and homeowners insurance.Protection Services adjusted net income was $217 million in 2024 compared to $106 million in 2023. The increase in 2024 was due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was also negatively impacted by an increase in state income taxes for Allstate Dealer Services.Premiums and other revenues increased 15.7% or $401 million to $2.96 billion in 2024 from $2.56 billion in 2023 primarily due to Allstate Protection Plans.Allstate Health and Benefits adjusted net income was $186 million in 2024 compared to $242 million in 2023. The decrease was primarily due to increased benefit utilization across all lines of business.Premiums and contract charges totaled $1.92 billion in 2024, an increase of 4.1% from $1.85 billion in 2023, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.Income taxesThe effective tax rate is the ratio of income tax expense (benefit) divided by income (loss) from operations before income tax expense. For the year ended December 31, 2024, we reported an effective tax rate of 20.2% based on total income tax expense of $1.16 billion on total income from operations before income tax expense of $5.76 billion. The effective rate in 2024 is lower than the federal statutory rate of 21%, primarily due to tax benefits derived from tax credits, tax-exempt interest income, and share-based payments, offset by state income tax expense.For the year ended December 31, 2023, we reported an effective tax rate of 38.8% based on a total income tax benefit of $135 million on the loss from operations before income tax benefit of $348 million. The effective tax rate in 2023 was higher than the federal statutory rate of 21% due to the additional tax benefit derived from tax credits, tax-exempt interest income and shared-based payments, offset by a change in valuation allowance and uncertain tax positions.For additional information, see Note 17 of the consolidated financial statements. Segment highlightsAllstate Protection underwriting income was $3.15 billion in 2024 compared to an underwriting loss of $2.09 billion in 2023, primarily due to increased premiums earned, favorable reserve reestimates and lower losses, partially offset by higher advertising costs.Premiums written increased 11.1% to $55.93 billion in 2024 compared to $50.35 billion in 2023, reflecting higher premiums in auto and homeowners insurance.Protection Services adjusted net income was $217 million in 2024 compared to $106 million in 2023. The increase in 2024 was due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was also negatively impacted by an increase in state income taxes for Allstate Dealer Services.Premiums and other revenues increased 15.7% or $401 million to $2.96 billion in 2024 from $2.56 billion in 2023 primarily due to Allstate Protection Plans.Allstate Health and Benefits adjusted net income was $186 million in 2024 compared to $242 million in 2023. The decrease was primarily due to increased benefit utilization across all lines of business.",
      "prior_body": "Years Ended December 31,($ in millions)202320222021Revenues Property and casualty insurance premiums$50,670 $45,904 $42,218 Accident and health insurance premiums and contract charges1,846 1,832 1,834 Other revenue2,400 2,344 2,172 Net investment income 2,478 2,403 3,293 Net gains (losses) on investments and derivatives(300)(1,072)1,084 Total revenues57,094 51,411 50,601 Costs and expenses Property and casualty insurance claims and claims expense(41,070)(37,264)(29,318)Shelter-in-Place Payback expense— — (29)Accident, health and other policy benefits(1,071)(1,042)(1,060)Amortization of deferred policy acquisition costs(7,278)(6,634)(6,236)Operating, restructuring and interest expenses(7,685)(7,832)(7,760)Pension and other postretirement remeasurement gains (losses)(9)(116)644 Amortization of purchased intangibles(329)(353)(376)Total costs and expenses(57,442)(53,241)(44,135)(Loss) income from operations before income tax expense(348)(1,830)6,466 Income tax benefit (expense)135 488 (1,292)Net (loss) income from continuing operations(213)(1,342)5,174 Loss from discontinued operations, net of tax— — (3,593)Net (loss) income(213)(1,342)1,581 Less: Net loss attributable to noncontrolling interest(25)(53)(33)Net (loss) income attributable to Allstate(188)(1,289)1,614 Preferred stock dividends(128)(105)(114)Net (loss) income applicable to common shareholders$(316)$(1,394)$1,500 Segment HighlightsAllstate Protection underwriting loss was $2.09 billion in 2023 compared to underwriting loss of $2.78 billion in 2022, due to increased premiums earned and lower unfavorable non-catastrophe reserve reestimates, partially offset by higher incurred losses and higher catastrophe losses of $5.64 billion in 2023 compared to $3.11 billion in 2022.Premiums written increased 10.0% to $50.35 billion in 2023 compared to $45.79 billion in 2022, reflecting higher premiums in both Allstate and National General brands.Protection Services adjusted net income was $106 million in 2023 compared to $169 million in 2022. The decrease in 2023 was due to higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection. Adjusted net income was also impacted by an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services. Premiums and other revenues increased 9.4% or $220 million to $2.56 billion in 2023 from $2.34 billion in 2022 primarily due to Allstate Protection Plans.Allstate Health and Benefits adjusted net income was $242 million in 2023 compared to $245 million in 2022. The decrease was primarily due to a decline in employer voluntary benefits, partially offset by increases in individual and group health.Premiums and contract charges totaled $1.85 billion in 2023, an increase of 0.8% from $1.83 billion in 2022 primarily due to growth in group health, partially offset by a decline in employer voluntary benefits and individual health.Income TaxesThe effective tax rate is the ratio of income tax (benefit) expense divided by (loss) income from operations before income tax expense. The effective tax rate for 2023 was 38.8% compared to 26.7% in 2022 due to the total income tax benefit measured against a lower loss from operations before income tax expense of $348 million in 2023 compared to a loss of $1.83 billion in 2022. In both years, the effective tax rate was higher than the 21% federal statutory income tax rate, primarily due to tax credits, tax-exempt interest income and excess tax benefits on shared-based payments, offset by a change in valuation allowance and uncertain tax positions. In addition, in 2023, the Company recorded an additional tax benefit arising from the liquidation of a foreign subsidiary and the remeasurement of state deferred income taxes. The Segment HighlightsAllstate Protection underwriting loss was $2.09 billion in 2023 compared to underwriting loss of $2.78 billion in 2022, due to increased premiums earned and lower unfavorable non-catastrophe reserve reestimates, partially offset by higher incurred losses and higher catastrophe losses of $5.64 billion in 2023 compared to $3.11 billion in 2022.Premiums written increased 10.0% to $50.35 billion in 2023 compared to $45.79 billion in 2022, reflecting higher premiums in both Allstate and National General brands.Protection Services adjusted net income was $106 million in 2023 compared to $169 million in 2022. The decrease in 2023 was due to higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection. Adjusted net income was also impacted by an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services. Premiums and other revenues increased 9.4% or $220 million to $2.56 billion in 2023 from $2.34 billion in 2022 primarily due to Allstate Protection Plans."
    },
    {
      "status": "MODIFIED",
      "current_title": "Financial highlights",
      "prior_title": "Financial Highlights",
      "similarity_score": 0.688,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Investments totaled $72.61 billion as of December 31, 2024, increasing from $66.68 billion as of December 31, 2023.\""
      ],
      "current_body": "Investments totaled $72.61 billion as of December 31, 2024, increasing from $66.68 billion as of December 31, 2023. Allstate shareholders’ equity was $21.44 billion as of December 31, 2024 and $17.77 billion as of December 31, 2023. The increase is primarily due to net income, partially offset by dividends to shareholders. Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $72.35 as of December 31, 2024, an increase of 21.8% from $59.39 as of December 31, 2023.Return on average Allstate common shareholders’ equity For the twelve months ended December 31, 2024, return on Allstate common shareholders’ equity was 25.8%, an increase of 27.8 points from (2.0)% for the twelve months ended December 31, 2023, primarily due to net income applicable to common shareholders. Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $72.35 as of December 31, 2024, an increase of 21.8% from $59.39 as of December 31, 2023. Return on average Allstate common shareholders’ equity For the twelve months ended December 31, 2024, return on Allstate common shareholders’ equity was 25.8%, an increase of 27.8 points from (2.0)% for the twelve months ended December 31, 2023, primarily due to net income applicable to common shareholders. The Allstate Corporation 37 The Allstate Corporation 37 The Allstate Corporation 37 2024 Form 10-K 2024 Form 10-K",
      "prior_body": "Investments totaled $66.68 billion as of December 31, 2023, increasing from $61.83 billion as of December 31, 2022. Allstate shareholders’ equity was $17.77 billion as of December 31, 2023 and $17.49 billion as of December 31, 2022. The increase is primarily due to lower unrealized net capital losses on investments, partially offset by dividends paid to shareholders, common share repurchases and a net loss. Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $59.39 as of December 31, 2023, an increase of 2.2% from $58.12 as of December 31, 2022. Return on average common Allstate shareholders’ equity For the twelve months ended December 31, 2023, return on Allstate common shareholders’ equity was (2.0)%, an increase of 5.2 points from (7.2)% for the twelve months ended December 31, 2022, primarily due to lower net loss applicable to common shareholders. Pension and other postretirement remeasurement gains and losses We recorded pension and other postretirement remeasurement losses of $9 million in 2023, primarily related to losses on the remeasurement of the projected benefit obligation driven by a decrease in the liability discount rate, partially offset by gains due to favorable asset performance compared to expected return on plan assets. See Note 18 of the consolidated financial statements and Application of Critical Accounting Estimates section of the MD&A for further information."
    },
    {
      "status": "MODIFIED",
      "current_title": "Value at each year-end of $100 initial investment made on December 31, 2019",
      "prior_title": "Value at each year-end of $100 initial investment made on December 31, 2018",
      "similarity_score": 0.683,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"32 www.allstate.com 32 www.allstate.com 32 www.allstate.com 2024 Form 10-K 2024 Form 10-K Issuer purchases of equity securities PeriodTotal number of shares(or units) purchased (1)Average pricepaid per share(or unit)Total number of shares (or units) purchased as part of publicly announced plans or programsMaximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programsOctober 1, 2024 - October 31, 2024 Open Market Purchases271 $190.57 — November 1, 2024 - November 30, 2024 Open Market Purchases5,140 $184.15 — December 1, 2024 - December 31, 2024 Open Market Purchases2,908 $204.01 — Total8,319 $191.30 — $—\""
      ],
      "current_body": "32 www.allstate.com 32 www.allstate.com 32 www.allstate.com 2024 Form 10-K 2024 Form 10-K Issuer purchases of equity securities PeriodTotal number of shares(or units) purchased (1)Average pricepaid per share(or unit)Total number of shares (or units) purchased as part of publicly announced plans or programsMaximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programsOctober 1, 2024 - October 31, 2024 Open Market Purchases271 $190.57 — November 1, 2024 - November 30, 2024 Open Market Purchases5,140 $184.15 — December 1, 2024 - December 31, 2024 Open Market Purchases2,908 $204.01 — Total8,319 $191.30 — $—",
      "prior_body": "The Allstate Corporation 33 The Allstate Corporation 33 The Allstate Corporation 33 2023 Form 10-K 2023 Form 10-K Issuer Purchases of Equity Securities PeriodTotal number of shares(or units) purchased (1)Average pricepaid per share(or unit)Total number of shares (or units) purchased as part of publicly announced plans or programsMaximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (2)October 1, 2023 - October 31, 2023 Open Market Purchases329 $112.37 — November 1, 2023 - November 30, 2023 Open Market Purchases125,437 $134.12 — December 1, 2023 - December 31, 2023 Open Market Purchases2,798 $138.37 — Total128,564 $134.15 — $472 million"
    },
    {
      "status": "MODIFIED",
      "current_title": "Catastrophe reinsurance",
      "prior_title": "Protection Services",
      "similarity_score": 0.682,
      "confidence": "medium",
      "key_changes": [
        "Added sentence: \"Protection Services (1)See Note 12 of the consolidated financial statements for additional details on the National Flood Insurance Program.\"",
        "Added sentence: \"In 2024, ceded premiums earned increased primarily due to NCRF and catastrophe reinsurance.\"",
        "Added sentence: \"In 2023, ceded premiums earned increased primarily due to catastrophe reinsurance.In 2024, ceded claims and claims expenses increased $1.08 billion primarily due to an increase in the IBNR loss reserve for NFIP related to Hurricane Helene, catastrophe reinsurance, and a prior year reduction in gross reserves for Michigan Personal Injury Protection (“PIP”) coverage.\"",
        "Added sentence: \"In 2023, ceded claims and claims expenses decreased $967 million primarily due to lower amounts related to NFIP, and a reduction in gross reserves for Michigan PIP coverage.\"",
        "Added sentence: \"For further discussion of these items, see Regulation, Indemnification Programs and Note 12 of the consolidated financial statements.\""
      ],
      "current_body": "Protection Services (1)See Note 12 of the consolidated financial statements for additional details on the National Flood Insurance Program. In 2024, ceded premiums earned increased primarily due to NCRF and catastrophe reinsurance. In 2023, ceded premiums earned increased primarily due to catastrophe reinsurance.In 2024, ceded claims and claims expenses increased $1.08 billion primarily due to an increase in the IBNR loss reserve for NFIP related to Hurricane Helene, catastrophe reinsurance, and a prior year reduction in gross reserves for Michigan Personal Injury Protection (“PIP”) coverage. In 2023, ceded claims and claims expenses decreased $967 million primarily due to lower amounts related to NFIP, and a reduction in gross reserves for Michigan PIP coverage. For further discussion of these items, see Regulation, Indemnification Programs and Note 12 of the consolidated financial statements. In 2024, ceded premiums earned increased primarily due to NCRF and catastrophe reinsurance. In 2023, ceded premiums earned increased primarily due to catastrophe reinsurance.In 2024, ceded claims and claims expenses increased $1.08 billion primarily due to an increase in the IBNR loss reserve for NFIP related to Hurricane Helene, catastrophe reinsurance, and a prior year In 2024, ceded premiums earned increased primarily due to NCRF and catastrophe reinsurance. In 2023, ceded premiums earned increased primarily due to catastrophe reinsurance. In 2024, ceded claims and claims expenses increased $1.08 billion primarily due to an increase in the IBNR loss reserve for NFIP related to Hurricane Helene, catastrophe reinsurance, and a prior year reduction in gross reserves for Michigan Personal Injury Protection (“PIP”) coverage. In 2023, ceded claims and claims expenses decreased $967 million primarily due to lower amounts related to NFIP, and a reduction in gross reserves for Michigan PIP coverage. For further discussion of these items, see Regulation, Indemnification Programs and Note 12 of the consolidated financial statements. reduction in gross reserves for Michigan Personal Injury Protection (“PIP”) coverage. In 2023, ceded claims and claims expenses decreased $967 million primarily due to lower amounts related to NFIP, and a reduction in gross reserves for Michigan PIP coverage. For further discussion of these items, see Regulation, Indemnification Programs and Note 12 of the consolidated financial statements. 58 www.allstate.com 58 www.allstate.com 58 www.allstate.com 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense Michigan PIP reserve and claim activity before and after the effects of MCCA recoverablesFor the years ended December 31,202420232022($ in millions)GrossNetGrossNetGrossNetBeginning reserves$7,003 $641 $7,393 $735 $7,387 $747 Incurred claims and claims expense - current year284 78 307 102 451 175 Incurred claims and claims expense - prior years(38)(14)(455)(60)(159)(15)Claims and claims expense paid - current year(21)(21)(21)(20)(26)(26)Claims and claims expense paid - prior years(200)(63)(221)(116)(260)(146)Ending reserves (1)$7,028 $621 $7,003 $641 $7,393 $735",
      "prior_body": "(1)N/A reflects no S&P Global Ratings (“S&P”) or A.M. Best ratings available. (2)As of December 31, 2023 and 2022, MCCA includes $62 million of reinsurance recoverable on paid claims and $6.36 billion and $6.66 billion of reinsurance recoverable on unpaid claims, respectively. (3)Other reinsurance recoverables primarily relate to commercial lines, including shared economy, as well as asbestos, environmental and other liability exposures. Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation and the Company has not had any credit losses related to these programs and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers.The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $62 million as of December 31, 2023 and 2022.The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation and the Company has not had any credit losses related to these programs and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers.The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $62 million as of December 31, 2023 and 2022.The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation and the Company has not had any credit losses related to these programs and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers. The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $62 million as of December 31, 2023 and 2022. The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of 60 www.allstate.com 60 www.allstate.com 60 www.allstate.com 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables.For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 11 of the consolidated financial statements. business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables.For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 11 of the consolidated financial statements. recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables. For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 11 of the consolidated financial statements. Effects of reinsurance ceded and indemnification programs on our premiums earned and claims and claims expenseFor the years ended December 31,($ in millions)202320222021Allstate Protection - PremiumsIndemnification programsState-based industry pool or facility programsNCRF$323 $300 $310 MCCA29 18 20 PLIGA7 7 7 FHCF28 24 15 Other1 — 420 Federal Government - NFIP327 319 350 Catastrophe reinsurance995 764 541 Other reinsurance programs 110 261 60 Total Allstate Protection1,820 1,693 1,723 Run-off Property-Liability— — — Total Property-Liability1,820 1,693 1,723 Protection Services169 176 181 Total effect on premiums earned$1,989 $1,869 $1,904 Allstate Protection - ClaimsIndemnification programsState-based industry pool or facility programsMCCA$(185)$116 $611 NCRF379 294 279 PLIGA14 (24)— FHCF(6)74 13 Other 1 — 359 Federal Government - NFIP102 435 267 Catastrophe reinsurance 32 298 1,719 Other reinsurance programs151 261 85 Total Allstate Protection488 1,454 3,333 Run-off Property-Liability29 50 60 Total Property-Liability517 1,504 3,393 Protection Services116 96 91 Total effect on claims and claims expense$633 $1,600 $3,484"
    },
    {
      "status": "MODIFIED",
      "current_title": "Run-off Property-Liability net reserve reestimates",
      "prior_title": "Run-off Property-Liability net reserve reestimates",
      "similarity_score": 0.676,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Reserve reestimates in 2024 primarily related to our annual reserve review based on new reported information for asbestos related claims and adverse developments within the other run-off lines, and loss adjustment expenses.\""
      ],
      "current_body": "Reserve reestimates in 2024 primarily related to our annual reserve review based on new reported information for asbestos related claims and adverse developments within the other run-off lines, and loss adjustment expenses. Reserve reestimates in 2023 primarily related to the annual reserve review based on new reported information and defense costs for asbestos related claims and other run-off exposures and higher than expected environmental reported losses, and loss adjustment expenses. Reserve reestimates in 2024 primarily related to our annual reserve review based on new reported information for asbestos related claims and adverse developments within the other run-off lines, and loss adjustment expenses. Reserve reestimates in 2024 primarily related to our annual reserve review based on new reported information for asbestos related claims and adverse developments within the other run-off lines, and loss adjustment expenses. Reserve reestimates in 2023 primarily related to the annual reserve review based on new reported information and defense costs for asbestos related claims and other run-off exposures and higher than expected environmental reported losses, and loss adjustment expenses. Reserve reestimates in 2023 primarily related to the annual reserve review based on new reported information and defense costs for asbestos related claims and other run-off exposures and higher than expected environmental reported losses, and loss adjustment expenses. Reserves and claim activity before (Gross) and after (Net) the effects of reinsurance202420232022($ in millions, except ratios)GrossNetGrossNetGrossNetAsbestos claimsBeginning reserves$1,166 $804 $1,190 $811 $1,210 $828 Incurred claims and claims expense28 19 56 44 59 34 Claims and claims expense paid(70)(49)(80)(51)(79)(51)Ending reserves$1,124 $774 $1,166 $804 $1,190 $811 Annual survival ratio16.1 15.8 14.6 15.8 15.1 15.9 3-year survival ratio14.6 15.3 13.8 14.8 13.1 14.0 Environmental claimsBeginning reserves$331 $267 $328 $267 $273 $226 Incurred claims and claims expense11 10 23 18 79 56 Claims and claims expense paid(22)(18)(20)(18)(24)(15)Ending reserves$320 $259 $331 $267 $328 $267 Annual survival ratio14.5 14.4 16.6 14.8 13.7 17.8 3-year survival ratio14.3 15.2 14.4 15.1 14.5 15.4 Combined environmental and asbestos claimsAnnual survival ratio15.7 15.4 15.0 15.5 14.7 16.3 3-year survival ratio14.6 15.3 13.9 14.8 13.3 14.3 Percentage of IBNR in ending reserves54.0 %055.7 %055.9 %",
      "prior_body": "Reserve reestimates in 2023 primarily related to new reported information and defense costs for asbestos and other run-off exposures and higher than expected environmental reported losses. Reserve reestimates in 2022 primarily related to new reported information and defense costs for asbestos and higher than expected reported losses for environmental and other run-off exposures. Reserve reestimates in 2023 primarily related to new reported information and defense costs for asbestos and other run-off exposures and higher than expected environmental reported losses. Reserve reestimates in 2023 primarily related to new reported information and defense costs for asbestos and other run-off exposures and higher than expected environmental reported losses. Reserve reestimates in 2022 primarily related to new reported information and defense costs for asbestos and higher than expected reported losses for environmental and other run-off exposures. Reserve reestimates in 2022 primarily related to new reported information and defense costs for asbestos and higher than expected reported losses for environmental and other run-off exposures. Reserves and claim activity before (Gross) and after (Net) the effects of reinsurance202320222021($ in millions, except ratios)GrossNetGrossNetGrossNetAsbestos claimsBeginning reserves$1,190 $811 $1,210 $828 $1,204 $827 Incurred claims and claims expense56 44 59 34 100 63 Claims and claims expense paid(80)(51)(79)(51)(94)(62)Ending reserves$1,166 $804 $1,190 $811 $1,210 $828 Annual survival ratio14.6 15.8 15.1 15.9 12.9 13.4 3-year survival ratio13.8 14.8 13.1 14.0 11.1 12.0 Environmental claimsBeginning reserves$328 $267 $273 $226 $249 $206 Incurred claims and claims expense23 18 79 56 50 40 Claims and claims expense paid(20)(18)(24)(15)(26)(20)Ending reserves$331 $267 $328 $267 $273 $226 Annual survival ratio16.6 14.8 13.7 17.8 10.5 11.3 3-year survival ratio14.4 15.1 14.5 15.4 10.6 10.6 Combined environmental and asbestos claimsAnnual survival ratio15.0 15.5 14.7 16.3 12.4 12.9 3-year survival ratio13.9 14.8 13.3 14.3 11.0 11.7 Percentage of IBNR in ending reserves55.7 %055.9 %054.8 %"
    },
    {
      "status": "MODIFIED",
      "current_title": "Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”)",
      "prior_title": "Percentage of gross and ceded reserves by case and IBNR",
      "similarity_score": 0.669,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Gross reserves (1) Ceded (2) Gross reserves (1)Approximately 65% and 68% of gross case reserves as of December 31, 2024 and December 31, 2023, respectively, are subject to settlement agreements that define and limit our obligations.\""
      ],
      "current_body": "Gross reserves (1) Ceded (2) Gross reserves (1)Approximately 65% and 68% of gross case reserves as of December 31, 2024 and December 31, 2023, respectively, are subject to settlement agreements that define and limit our obligations. (2)Approximately 72% of ceded case reserves as of both December 31, 2024 and December 31, 2023 are subject to settlement agreements that define and limit our obligations. The Allstate Corporation 49 The Allstate Corporation 49 The Allstate Corporation 49 2024 Form 10-K Run-off Property-Liability 2024 Form 10-K Run-off Property-Liability",
      "prior_body": "Gross reserves (1) Ceded (2) Gross reserves (1)Approximately 68% and 64% of gross case reserves as of December 31, 2023 and December 31, 2022, respectively, are subject to settlement agreements. (2)Approximately 72% and 70% of ceded case reserves as of December 31, 2023 and December 31, 2022, respectively, are subject to settlement agreements. 52 www.allstate.com 52 www.allstate.com 52 www.allstate.com 2023 Form 10-K Run-off Property-Liability 2023 Form 10-K Run-off Property-Liability"
    },
    {
      "status": "MODIFIED",
      "current_title": "Policies in force",
      "prior_title": "Summarized financial information",
      "similarity_score": 0.669,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Employer voluntary benefits (2) Group health (3) Individual health (4) (1)Benefit ratio is calculated as accident, health and other policy benefits less interest credited to contractholder funds of $34 million, $33 million, and $33 million for the years ended December 31, 2024, 2023, and 2022, respectively, divided by premiums and contract charges.\"",
        "Reworded sentence: \"Premiums and contract charges increased 4.1% or $75 million in 2024 compared to 2023, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.\""
      ],
      "current_body": "(1)Primarily related to Arity and Allstate Roadside and are eliminated in our consolidated financial statements. Premiums written increased 5.0% or $134 million in 2024 compared to 2023, primarily due to international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside.Adjusted net income increased 104.7% or $111 million in 2024 compared to 2023, due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was also negatively impacted by an increase in state income taxes for Allstate Dealer Services.PIF increased 9.3% or 14 million in 2024 compared to 2023 due to growth at Allstate Protection Plans.Other revenue increased 38.2% or $122 million in 2024 compared to 2023, primarily due to higher revenue from increased customer lead sale purchases at Arity. Premiums written increased 5.0% or $134 million in 2024 compared to 2023, primarily due to international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside.Adjusted net income increased 104.7% or $111 million in 2024 compared to 2023, due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was Premiums written increased 5.0% or $134 million in 2024 compared to 2023, primarily due to international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside. Adjusted net income increased 104.7% or $111 million in 2024 compared to 2023, due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was also negatively impacted by an increase in state income taxes for Allstate Dealer Services.PIF increased 9.3% or 14 million in 2024 compared to 2023 due to growth at Allstate Protection Plans.Other revenue increased 38.2% or $122 million in 2024 compared to 2023, primarily due to higher revenue from increased customer lead sale purchases at Arity. also negatively impacted by an increase in state income taxes for Allstate Dealer Services. PIF increased 9.3% or 14 million in 2024 compared to 2023 due to growth at Allstate Protection Plans. Other revenue increased 38.2% or $122 million in 2024 compared to 2023, primarily due to higher revenue from increased customer lead sale purchases at Arity. The Allstate Corporation 51 The Allstate Corporation 51 The Allstate Corporation 51 2024 Form 10-K Protection Services 2024 Form 10-K Protection Services Intersegment premiums and service fees increased 30.4% to $180 million in 2024 compared to 2023, driven by increased lead sale purchases and higher software revenue at Arity.Claims and claims expense increased 1.4% or $9 million in 2024 compared to 2023, primarily driven by growth at Allstate Protection Plans partially offset by improved margins at Allstate Protection Plans resulting from lower frequency and lower claim severity at Allstate Roadside.Amortization of DAC increased 15.0% or $159 million in 2024 compared to 2023, driven by growth at Allstate Protection Plans.Operating costs and expenses increased 22.6% or $201 million in 2024 compared to 2023, primarily due to expenses related to growth at Arity and Allstate Protection Plans, partially offset by lower expenses at Allstate Roadside and Allstate Identity Protection. Intersegment premiums and service fees increased 30.4% to $180 million in 2024 compared to 2023, driven by increased lead sale purchases and higher software revenue at Arity.Claims and claims expense increased 1.4% or $9 million in 2024 compared to 2023, primarily driven by growth at Allstate Protection Plans partially offset by improved margins at Allstate Protection Plans resulting from lower frequency and lower claim severity at Allstate Roadside.Amortization of DAC increased 15.0% or $159 million in 2024 compared to 2023, driven by growth at Allstate Protection Plans. Intersegment premiums and service fees increased 30.4% to $180 million in 2024 compared to 2023, driven by increased lead sale purchases and higher software revenue at Arity. Claims and claims expense increased 1.4% or $9 million in 2024 compared to 2023, primarily driven by growth at Allstate Protection Plans partially offset by improved margins at Allstate Protection Plans resulting from lower frequency and lower claim severity at Allstate Roadside. Amortization of DAC increased 15.0% or $159 million in 2024 compared to 2023, driven by growth at Allstate Protection Plans. Operating costs and expenses increased 22.6% or $201 million in 2024 compared to 2023, primarily due to expenses related to growth at Arity and Allstate Protection Plans, partially offset by lower expenses at Allstate Roadside and Allstate Identity Protection. Operating costs and expenses increased 22.6% or $201 million in 2024 compared to 2023, primarily due to expenses related to growth at Arity and Allstate Protection Plans, partially offset by lower expenses at Allstate Roadside and Allstate Identity Protection. 52 www.allstate.com 52 www.allstate.com 52 www.allstate.com 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense",
      "prior_body": "Intersegment insurance premiums and service fees (1) (1)Primarily related to Arity and Allstate Roadside and are eliminated in our consolidated financial statements. Adjusted net income decreased 37.3% or $63 million in 2023 compared to 2022, due to an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services, higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection.Premiums written decreased 1.3% or $36 million in 2023 compared to 2022, primarily due to a decrease at Allstate Dealer Services and lower rescue volumes at Allstate Roadside, partially offset by international growth at Allstate Protection Plans.PIF increased 4.3% or 6 million in 2023 compared to 2022 due to an increase at Allstate Protection Plans.Other revenue decreased 8.1% or $28 million in 2023 compared to 2022, primarily due to reductions in third-party lead sales at Arity.Intersegment premiums and service fees decreased 7.4% to $138 million in 2023 compared to 2022, driven by decreased device sales for the Adjusted net income decreased 37.3% or $63 million in 2023 compared to 2022, due to an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services, higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection.Premiums written decreased 1.3% or $36 million in 2023 compared to 2022, primarily due to a decrease at Allstate Dealer Services and lower rescue volumes at Adjusted net income decreased 37.3% or $63 million in 2023 compared to 2022, due to an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services, higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection. Premiums written decreased 1.3% or $36 million in 2023 compared to 2022, primarily due to a decrease at Allstate Dealer Services and lower rescue volumes at Allstate Roadside, partially offset by international growth at Allstate Protection Plans.PIF increased 4.3% or 6 million in 2023 compared to 2022 due to an increase at Allstate Protection Plans.Other revenue decreased 8.1% or $28 million in 2023 compared to 2022, primarily due to reductions in third-party lead sales at Arity.Intersegment premiums and service fees decreased 7.4% to $138 million in 2023 compared to 2022, driven by decreased device sales for the Allstate Roadside, partially offset by international growth at Allstate Protection Plans. PIF increased 4.3% or 6 million in 2023 compared to 2022 due to an increase at Allstate Protection Plans. Other revenue decreased 8.1% or $28 million in 2023 compared to 2022, primarily due to reductions in third-party lead sales at Arity. Intersegment premiums and service fees decreased 7.4% to $138 million in 2023 compared to 2022, driven by decreased device sales for the 54 www.allstate.com 54 www.allstate.com 54 www.allstate.com 2023 Form 10-K Protection Services 2023 Form 10-K Protection Services Drivewise® offering at Arity due to a shift from devices to a lower cost mobile phone program.Claims and claims expense increased 18.8% or $100 million in 2023 compared to 2022, primarily driven by higher levels of claims at Allstate Protection Plans driven by growth in the business and higher severity at both Allstate Protection Plans and Allstate Dealer Services, partially offset by lower frequency at Allstate Roadside.Amortization of DAC increased 14.0% or $130 million in 2023 compared to 2022, driven by revenue growth at both Allstate Protection Plans and Allstate Dealer Services.Operating costs and expenses increased 1.7% or $15 million in 2023 compared to 2022, primarily due to growth at Allstate Protection Plans, partially offset by lower expenses at Arity.Restructuring and related charges increased $4 million in 2023 compared to 2022, primarily due to restructuring charges at Allstate Roadside. Drivewise® offering at Arity due to a shift from devices to a lower cost mobile phone program.Claims and claims expense increased 18.8% or $100 million in 2023 compared to 2022, primarily driven by higher levels of claims at Allstate Protection Plans driven by growth in the business and higher severity at both Allstate Protection Plans and Allstate Dealer Services, partially offset by lower frequency at Allstate Roadside.Amortization of DAC increased 14.0% or $130 million in 2023 compared to 2022, driven by revenue growth at both Allstate Protection Plans and Allstate Dealer Services. Drivewise® offering at Arity due to a shift from devices to a lower cost mobile phone program. Claims and claims expense increased 18.8% or $100 million in 2023 compared to 2022, primarily driven by higher levels of claims at Allstate Protection Plans driven by growth in the business and higher severity at both Allstate Protection Plans and Allstate Dealer Services, partially offset by lower frequency at Allstate Roadside. Amortization of DAC increased 14.0% or $130 million in 2023 compared to 2022, driven by revenue growth at both Allstate Protection Plans and Allstate Dealer Services. Operating costs and expenses increased 1.7% or $15 million in 2023 compared to 2022, primarily due to growth at Allstate Protection Plans, partially offset by lower expenses at Arity.Restructuring and related charges increased $4 million in 2023 compared to 2022, primarily due to restructuring charges at Allstate Roadside. Operating costs and expenses increased 1.7% or $15 million in 2023 compared to 2022, primarily due to growth at Allstate Protection Plans, partially offset by lower expenses at Arity. Restructuring and related charges increased $4 million in 2023 compared to 2022, primarily due to restructuring charges at Allstate Roadside. The Allstate Corporation 55 The Allstate Corporation 55 The Allstate Corporation 55 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves"
    },
    {
      "status": "MODIFIED",
      "current_title": "Policies in force",
      "prior_title": "Summarized financial information",
      "similarity_score": 0.664,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"(1)Primarily related to Arity and Allstate Roadside and are eliminated in our consolidated financial statements.\""
      ],
      "current_body": "(1)Primarily related to Arity and Allstate Roadside and are eliminated in our consolidated financial statements. Premiums written increased 5.0% or $134 million in 2024 compared to 2023, primarily due to international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside.Adjusted net income increased 104.7% or $111 million in 2024 compared to 2023, due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was also negatively impacted by an increase in state income taxes for Allstate Dealer Services.PIF increased 9.3% or 14 million in 2024 compared to 2023 due to growth at Allstate Protection Plans.Other revenue increased 38.2% or $122 million in 2024 compared to 2023, primarily due to higher revenue from increased customer lead sale purchases at Arity. Premiums written increased 5.0% or $134 million in 2024 compared to 2023, primarily due to international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside.Adjusted net income increased 104.7% or $111 million in 2024 compared to 2023, due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was Premiums written increased 5.0% or $134 million in 2024 compared to 2023, primarily due to international growth at Allstate Protection Plans, partially offset by lower sales at Allstate Roadside. Adjusted net income increased 104.7% or $111 million in 2024 compared to 2023, due to premium growth at Allstate Protection Plans, improved claim severity at Allstate Roadside, higher lead sales revenue at Arity and both growth and lower costs at Allstate Identity Protection. Prior year adjusted net income was also negatively impacted by an increase in state income taxes for Allstate Dealer Services.PIF increased 9.3% or 14 million in 2024 compared to 2023 due to growth at Allstate Protection Plans.Other revenue increased 38.2% or $122 million in 2024 compared to 2023, primarily due to higher revenue from increased customer lead sale purchases at Arity. also negatively impacted by an increase in state income taxes for Allstate Dealer Services. PIF increased 9.3% or 14 million in 2024 compared to 2023 due to growth at Allstate Protection Plans. Other revenue increased 38.2% or $122 million in 2024 compared to 2023, primarily due to higher revenue from increased customer lead sale purchases at Arity. The Allstate Corporation 51 The Allstate Corporation 51 The Allstate Corporation 51 2024 Form 10-K Protection Services 2024 Form 10-K Protection Services Intersegment premiums and service fees increased 30.4% to $180 million in 2024 compared to 2023, driven by increased lead sale purchases and higher software revenue at Arity.Claims and claims expense increased 1.4% or $9 million in 2024 compared to 2023, primarily driven by growth at Allstate Protection Plans partially offset by improved margins at Allstate Protection Plans resulting from lower frequency and lower claim severity at Allstate Roadside.Amortization of DAC increased 15.0% or $159 million in 2024 compared to 2023, driven by growth at Allstate Protection Plans.Operating costs and expenses increased 22.6% or $201 million in 2024 compared to 2023, primarily due to expenses related to growth at Arity and Allstate Protection Plans, partially offset by lower expenses at Allstate Roadside and Allstate Identity Protection. Intersegment premiums and service fees increased 30.4% to $180 million in 2024 compared to 2023, driven by increased lead sale purchases and higher software revenue at Arity.Claims and claims expense increased 1.4% or $9 million in 2024 compared to 2023, primarily driven by growth at Allstate Protection Plans partially offset by improved margins at Allstate Protection Plans resulting from lower frequency and lower claim severity at Allstate Roadside.Amortization of DAC increased 15.0% or $159 million in 2024 compared to 2023, driven by growth at Allstate Protection Plans. Intersegment premiums and service fees increased 30.4% to $180 million in 2024 compared to 2023, driven by increased lead sale purchases and higher software revenue at Arity. Claims and claims expense increased 1.4% or $9 million in 2024 compared to 2023, primarily driven by growth at Allstate Protection Plans partially offset by improved margins at Allstate Protection Plans resulting from lower frequency and lower claim severity at Allstate Roadside. Amortization of DAC increased 15.0% or $159 million in 2024 compared to 2023, driven by growth at Allstate Protection Plans. Operating costs and expenses increased 22.6% or $201 million in 2024 compared to 2023, primarily due to expenses related to growth at Arity and Allstate Protection Plans, partially offset by lower expenses at Allstate Roadside and Allstate Identity Protection. Operating costs and expenses increased 22.6% or $201 million in 2024 compared to 2023, primarily due to expenses related to growth at Arity and Allstate Protection Plans, partially offset by lower expenses at Allstate Roadside and Allstate Identity Protection. 52 www.allstate.com 52 www.allstate.com 52 www.allstate.com 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense",
      "prior_body": "Intersegment insurance premiums and service fees (1) (1)Primarily related to Arity and Allstate Roadside and are eliminated in our consolidated financial statements. Adjusted net income decreased 37.3% or $63 million in 2023 compared to 2022, due to an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services, higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection.Premiums written decreased 1.3% or $36 million in 2023 compared to 2022, primarily due to a decrease at Allstate Dealer Services and lower rescue volumes at Allstate Roadside, partially offset by international growth at Allstate Protection Plans.PIF increased 4.3% or 6 million in 2023 compared to 2022 due to an increase at Allstate Protection Plans.Other revenue decreased 8.1% or $28 million in 2023 compared to 2022, primarily due to reductions in third-party lead sales at Arity.Intersegment premiums and service fees decreased 7.4% to $138 million in 2023 compared to 2022, driven by decreased device sales for the Adjusted net income decreased 37.3% or $63 million in 2023 compared to 2022, due to an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services, higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection.Premiums written decreased 1.3% or $36 million in 2023 compared to 2022, primarily due to a decrease at Allstate Dealer Services and lower rescue volumes at Adjusted net income decreased 37.3% or $63 million in 2023 compared to 2022, due to an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services, higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection. Premiums written decreased 1.3% or $36 million in 2023 compared to 2022, primarily due to a decrease at Allstate Dealer Services and lower rescue volumes at Allstate Roadside, partially offset by international growth at Allstate Protection Plans.PIF increased 4.3% or 6 million in 2023 compared to 2022 due to an increase at Allstate Protection Plans.Other revenue decreased 8.1% or $28 million in 2023 compared to 2022, primarily due to reductions in third-party lead sales at Arity.Intersegment premiums and service fees decreased 7.4% to $138 million in 2023 compared to 2022, driven by decreased device sales for the Allstate Roadside, partially offset by international growth at Allstate Protection Plans. PIF increased 4.3% or 6 million in 2023 compared to 2022 due to an increase at Allstate Protection Plans. Other revenue decreased 8.1% or $28 million in 2023 compared to 2022, primarily due to reductions in third-party lead sales at Arity. Intersegment premiums and service fees decreased 7.4% to $138 million in 2023 compared to 2022, driven by decreased device sales for the 54 www.allstate.com 54 www.allstate.com 54 www.allstate.com 2023 Form 10-K Protection Services 2023 Form 10-K Protection Services Drivewise® offering at Arity due to a shift from devices to a lower cost mobile phone program.Claims and claims expense increased 18.8% or $100 million in 2023 compared to 2022, primarily driven by higher levels of claims at Allstate Protection Plans driven by growth in the business and higher severity at both Allstate Protection Plans and Allstate Dealer Services, partially offset by lower frequency at Allstate Roadside.Amortization of DAC increased 14.0% or $130 million in 2023 compared to 2022, driven by revenue growth at both Allstate Protection Plans and Allstate Dealer Services.Operating costs and expenses increased 1.7% or $15 million in 2023 compared to 2022, primarily due to growth at Allstate Protection Plans, partially offset by lower expenses at Arity.Restructuring and related charges increased $4 million in 2023 compared to 2022, primarily due to restructuring charges at Allstate Roadside. Drivewise® offering at Arity due to a shift from devices to a lower cost mobile phone program.Claims and claims expense increased 18.8% or $100 million in 2023 compared to 2022, primarily driven by higher levels of claims at Allstate Protection Plans driven by growth in the business and higher severity at both Allstate Protection Plans and Allstate Dealer Services, partially offset by lower frequency at Allstate Roadside.Amortization of DAC increased 14.0% or $130 million in 2023 compared to 2022, driven by revenue growth at both Allstate Protection Plans and Allstate Dealer Services. Drivewise® offering at Arity due to a shift from devices to a lower cost mobile phone program. Claims and claims expense increased 18.8% or $100 million in 2023 compared to 2022, primarily driven by higher levels of claims at Allstate Protection Plans driven by growth in the business and higher severity at both Allstate Protection Plans and Allstate Dealer Services, partially offset by lower frequency at Allstate Roadside. Amortization of DAC increased 14.0% or $130 million in 2023 compared to 2022, driven by revenue growth at both Allstate Protection Plans and Allstate Dealer Services. Operating costs and expenses increased 1.7% or $15 million in 2023 compared to 2022, primarily due to growth at Allstate Protection Plans, partially offset by lower expenses at Arity.Restructuring and related charges increased $4 million in 2023 compared to 2022, primarily due to restructuring charges at Allstate Roadside. Operating costs and expenses increased 1.7% or $15 million in 2023 compared to 2022, primarily due to growth at Allstate Protection Plans, partially offset by lower expenses at Arity. Restructuring and related charges increased $4 million in 2023 compared to 2022, primarily due to restructuring charges at Allstate Roadside. The Allstate Corporation 55 The Allstate Corporation 55 The Allstate Corporation 55 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves 2023 Form 10-K Property and Casualty Insurance Claims and Claims Expense Reserves"
    },
    {
      "status": "MODIFIED",
      "current_title": "Premiums and contract charges",
      "prior_title": "Premiums and contract charges",
      "similarity_score": 0.646,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Adjusted net income decreased $56 million in 2024 compared to 2023, primarily due to increased benefit utilization across all lines of business.New annualized premium sales (annualized premiums at initial employer voluntary benefit customer enrollment or health policy sale) were $732 million in both 2024 and 2023.\""
      ],
      "current_body": "Adjusted net income decreased $56 million in 2024 compared to 2023, primarily due to increased benefit utilization across all lines of business.New annualized premium sales (annualized premiums at initial employer voluntary benefit customer enrollment or health policy sale) were $732 million in both 2024 and 2023. Other revenue increased $75 million in 2024 compared to 2023, primarily due to increases in third party commission revenue for the individual health business and administrative fees in the group health business.Accident, health and other policy benefits increased 15.9% or $170 million in 2024 compared to 2023, primarily due to higher benefit utilization in all businesses and growth in group health and individual health.Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 11 of the consolidated financial statements.Benefit ratio increased 6.6 points to 62.8 in 2024 compared to 56.2 in 2023, primarily due to higher claims experience across all lines of business.Amortization of DAC decreased 2.7% or $4 million in 2024 compared to 2023. For information on changes in DAC, see Note 13 of the consolidated financial statements. Adjusted net income decreased $56 million in 2024 compared to 2023, primarily due to increased benefit utilization across all lines of business.New annualized premium sales (annualized premiums at initial employer voluntary benefit customer enrollment or health policy sale) were $732 million in both 2024 and 2023. Other revenue increased $75 million in 2024 compared to 2023, primarily due to increases in third party commission revenue for the individual health business and administrative fees in the group health business.Accident, health and other policy benefits increased 15.9% or $170 million in 2024 compared to 2023, primarily due to higher benefit utilization in all Adjusted net income decreased $56 million in 2024 compared to 2023, primarily due to increased benefit utilization across all lines of business. New annualized premium sales (annualized premiums at initial employer voluntary benefit customer enrollment or health policy sale) were $732 million in both 2024 and 2023. Other revenue increased $75 million in 2024 compared to 2023, primarily due to increases in third party commission revenue for the individual health business and administrative fees in the group health business. Accident, health and other policy benefits increased 15.9% or $170 million in 2024 compared to 2023, primarily due to higher benefit utilization in all businesses and growth in group health and individual health.Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 11 of the consolidated financial statements.Benefit ratio increased 6.6 points to 62.8 in 2024 compared to 56.2 in 2023, primarily due to higher claims experience across all lines of business.Amortization of DAC decreased 2.7% or $4 million in 2024 compared to 2023. For information on changes in DAC, see Note 13 of the consolidated financial statements. businesses and growth in group health and individual health. Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 11 of the consolidated financial statements. Benefit ratio increased 6.6 points to 62.8 in 2024 compared to 56.2 in 2023, primarily due to higher claims experience across all lines of business. Amortization of DAC decreased 2.7% or $4 million in 2024 compared to 2023. For information on changes in DAC, see Note 13 of the consolidated financial statements. Operating costs and expenses($ in millions)Employer voluntary benefitsGroup healthIndividualhealthTotal2024 Non-deferrable commissions$83 $108 $155 $346 Operating costs and expenses212 174 183 569 Total$295 $282 $338 $915 2023 Non-deferrable commissions$87 $97 $135 $319 Operating costs and expenses206 159 158 523 Total$293 $256 $293 $842 2022 Non-deferrable commissions$95 $83 $143 $321 Operating costs and expenses191 133 169 493 Total$286 $216 $312 $814",
      "prior_body": "The Allstate Corporation 63 The Allstate Corporation 63 The Allstate Corporation 63 2023 Form 10-K Allstate Health and Benefits 2023 Form 10-K Allstate Health and Benefits New annualized premium sales (annualized premiums at initial employer voluntary benefits customer enrollment or health policy sale) decreased by $2 million to $732 million in 2023. The decrease in 2023 primarily relates to a decline in employer voluntary benefits, partially offset by growth in group health and individual health businesses.Other revenue increased $45 million in 2023 compared to 2022, primarily due to an increase in group health administrative fees.Accident, health and other policy benefits increased 2.8% or $29 million in 2023 compared to 2022, primarily due to growth in group health, partially offset by lower benefit utilization in individual health.Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 10 of the consolidated financial statements.Benefit ratio increased 1.1 points to 56.2 in 2023 compared to 55.1 in 2022, primarily due to higher benefit utilization in employer voluntary benefits and group health, partially offset by lower benefit utilization in individual health.Amortization of DAC increased 10.3% or $14 million in 2023 compared to 2022, primarily due to higher amortization related to growth in individual health. For information on changes in DAC, see Note 12 of the consolidated financial statements. New annualized premium sales (annualized premiums at initial employer voluntary benefits customer enrollment or health policy sale) decreased by $2 million to $732 million in 2023. The decrease in 2023 primarily relates to a decline in employer voluntary benefits, partially offset by growth in group health and individual health businesses.Other revenue increased $45 million in 2023 compared to 2022, primarily due to an increase in group health administrative fees.Accident, health and other policy benefits increased 2.8% or $29 million in 2023 compared to 2022, primarily due to growth in group health, partially offset by lower benefit utilization in individual health.Accident, health and other policy benefits include changes in the reserve for future policy benefits, New annualized premium sales (annualized premiums at initial employer voluntary benefits customer enrollment or health policy sale) decreased by $2 million to $732 million in 2023. The decrease in 2023 primarily relates to a decline in employer voluntary benefits, partially offset by growth in group health and individual health businesses. Other revenue increased $45 million in 2023 compared to 2022, primarily due to an increase in group health administrative fees. Accident, health and other policy benefits increased 2.8% or $29 million in 2023 compared to 2022, primarily due to growth in group health, partially offset by lower benefit utilization in individual health. Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 10 of the consolidated financial statements.Benefit ratio increased 1.1 points to 56.2 in 2023 compared to 55.1 in 2022, primarily due to higher benefit utilization in employer voluntary benefits and group health, partially offset by lower benefit utilization in individual health.Amortization of DAC increased 10.3% or $14 million in 2023 compared to 2022, primarily due to higher amortization related to growth in individual health. For information on changes in DAC, see Note 12 of the consolidated financial statements. expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 10 of the consolidated financial statements. Benefit ratio increased 1.1 points to 56.2 in 2023 compared to 55.1 in 2022, primarily due to higher benefit utilization in employer voluntary benefits and group health, partially offset by lower benefit utilization in individual health. Amortization of DAC increased 10.3% or $14 million in 2023 compared to 2022, primarily due to higher amortization related to growth in individual health. For information on changes in DAC, see Note 12 of the consolidated financial statements. Operating costs and expensesFor the years ended December 31,($ in millions)202320222021Non-deferrable commissions$319 $321 $316 General and administrative expenses523 493 471 Total operating costs and expenses$842 $814 $787"
    },
    {
      "status": "MODIFIED",
      "current_title": "Fixed income securities",
      "prior_title": "Fixed income securities",
      "similarity_score": 0.644,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Fixed income securities by typeFair value as of December 31,($ in millions)20242023U.S.\""
      ],
      "current_body": "Fixed income securities by typeFair value as of December 31,($ in millions)20242023U.S. government and agencies$11,108 $8,619 Municipal8,842 6,006 Corporate30,192 31,205 Foreign government1,364 1,290 Asset-backed securities (“ABS”)1,241 1,745 Total fixed income securities$52,747 $48,865",
      "prior_body": "Fixed income securities by typeFair value as of December 31,($ in millions)20232022U.S. government and agencies$8,619 $7,898 Municipal6,006 6,210 Corporate31,205 26,263 Foreign government1,290 957 Asset-backed securities (“ABS”)1,745 1,157 Total fixed income securities$48,865 $42,485"
    },
    {
      "status": "MODIFIED",
      "current_title": "Measuring segment profit or loss",
      "prior_title": "Measuring segment profit or loss",
      "similarity_score": 0.621,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Underwriting income (loss) is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), 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 accounting principles generally accepted in the United States of America (“GAAP”).\"",
        "Reworded sentence: \"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 itemsMacroeconomic impactsMacroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S.\"",
        "Reworded sentence: \"Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect the business and results of operations”.\"",
        "Reworded sentence: \"Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2024 results.Dispositions On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc.\""
      ],
      "current_body": "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 expense (“losses”), 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 accounting principles generally accepted in the United States of America (“GAAP”). We use this measure in our evaluation of results of operations to analyze profitability. 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 itemsMacroeconomic impactsMacroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, conflict in the Middle East, the Russia/Ukraine conflict, supply chain disruptions, labor shortages and potential trade policy actions, such as tariffs and quotas. These factors should be considered when comparing the current period to prior periods. Macroeconomic impacts are disclosed in Part 1 “Item 1A. Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect the business and results of operations”. This is not inclusive of all potential impacts and should not be treated as such. Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2024 results.Dispositions On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc. to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising our employer voluntary benefits business for approximately $2.0 billion in cash. The employer voluntary benefits business is reported in the Allstate Health and Benefits segment, and beginning in the third quarter of 2024, the assets and liabilities of the business were classified as held for sale. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business for approximately $1.25 billion in cash, adjusted for the closing balance sheet. The group health business is reported in the Allstate Health and Benefits segment, and beginning in the first quarter of 2025, the assets use this measure in our evaluation of results of operations to analyze profitability. 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",
      "prior_body": "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 is calculated as premiums earned and other revenue, less claims and claims expense (“losses”), Shelter-in-Place Payback expense, 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 accounting principles generally accepted in the United States of America (“GAAP”). We use this measure in our evaluation of results of operations to analyze profitability. Adjusted net income 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•Business combination expenses and the amortization or impairment of purchased intangibles•Income or loss from discontinued operations•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 36 www.allstate.com 36 www.allstate.com 36 www.allstate.com 2023 Form 10-K 2023 Form 10-K Macroeconomic ImpactsMacroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, banking system instability, the Russia/Ukraine and Israel/Hamas conflicts and the remaining impacts of the Novel Coronavirus Pandemic or COVID-19 (“Coronavirus”), such as supply chain disruptions, labor shortages and other macroeconomic factors that have increased inflation. Inflation continues to remain elevated, which led to increases in interest rates by the Federal Reserve and many foreign governmental authorities and central banks. These actions could create significant economic uncertainty. Market volatility resulting from these factors and from disruptions in the banking industry have and may continue to impact our investment valuations and returns.These factors have affected our operations and may continue to significantly affect our results of operations, financial condition and liquidity and should be considered when comparing the current period to prior periods. Macroeconomic impacts are disclosed in Part 1 “Item 1A. Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, social unrest or other actions may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect our business and results of operations”. This is not inclusive of all potential impacts and should not be treated as such. Within the MD&A, we have included further disclosures related to macroeconomic impacts on our 2023 results.Israel/Hamas ConflictAs of December 31, 2023, we have approximately $47 million investment exposure in the Middle East, of which approximately $43 million is held in Israel, which is primarily indirect exposure through funds managed by external asset managers. Russia/Ukraine ConflictThe Russia-Ukraine war and related sanctions imposed as a result of this conflict have increased global economic and political uncertainty, including inflationary pressures and an increased risk of cybersecurity incidents. Allstate does not have operations or direct investments in Russia, Belarus or Ukraine, but we could experience significant indirect impacts on the investment portfolio, financial position, or results of operations. 2023 Operating Priorities and ResultsAllstate continued to focus on its operating priorities while executing a comprehensive plan to improve auto insurance profitability. The table below summarizes the results of our 2023 Operating Priorities. Macroeconomic ImpactsMacroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity, such as U.S. government fiscal and monetary policies, banking system instability, the Russia/Ukraine and Israel/Hamas conflicts and the remaining impacts of the Novel Coronavirus Pandemic or COVID-19 (“Coronavirus”), such as supply chain disruptions, labor shortages and other macroeconomic factors that have increased inflation. Inflation continues to remain elevated, which led to increases in interest rates by the Federal Reserve and many foreign governmental authorities and central banks. These actions could create significant economic uncertainty. Market volatility resulting from these factors and from disruptions in the banking industry have and may continue to impact our investment valuations and returns.These factors have affected our operations and may continue to significantly affect our results of operations, financial condition and liquidity and should be considered when comparing the current period to prior periods. Macroeconomic impacts are disclosed in Part 1 “Item 1A. Risk Factors’’, including the risk factors titled “A large-scale pandemic, the occurrence of terrorism, military actions, social unrest or other actions may have an adverse effect on our business” and “Conditions in the global economy and capital markets could adversely affect our business and results"
    },
    {
      "status": "MODIFIED",
      "current_title": "Number of claims (1)",
      "prior_title": "Number of claims (1)",
      "similarity_score": 0.614,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The Allstate Corporation 59 The Allstate Corporation 59 The Allstate Corporation 59 2024 Form 10-K Allstate Health and Benefits 2024 Form 10-K Allstate Health and Benefits\""
      ],
      "current_body": "(1)Total claims includes those covered and not covered by the MCCA indemnification. The Allstate Corporation 59 The Allstate Corporation 59 The Allstate Corporation 59 2024 Form 10-K Allstate Health and Benefits 2024 Form 10-K Allstate Health and Benefits",
      "prior_body": "(1)Total claims includes those covered and not covered by the MCCA indemnification. 62 www.allstate.com 62 www.allstate.com 62 www.allstate.com 2023 Form 10-K Allstate Health and Benefits 2023 Form 10-K Allstate Health and Benefits"
    },
    {
      "status": "MODIFIED",
      "current_title": "Allstate Health and Benefits Segment",
      "prior_title": "Allstate Health and Benefits Segment",
      "similarity_score": 0.606,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"In 2024, Allstate Health and Benefits represented 2.0% of total PIF.\"",
        "Reworded sentence: \"On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc.\""
      ],
      "current_body": "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. In 2024, Allstate Health and Benefits represented 2.0% of total PIF. Our target customers are small group employers and consumers with family and financial protection needs. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc. to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business, reported within this segment. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. For additional information on the disposition, see Note 4. On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions. The individual health business will either be retained or divested. Summarized financial informationFor the years ended December 31,($ in millions)202420232022RevenuesAccident and health insurance premiums and contract charges$1,921 $1,846 $1,832 Other revenue522 447 402 Net investment income100 82 69 Costs and expensesAccident, health and other policy benefits(1,241)(1,071)(1,042)Amortization of DAC(146)(150)(136)Operating costs and expenses(915)(842)(814)Restructuring and related charges(3)(7)(2)Income tax expense on operations(52)(63)(64)Adjusted net income$186 $242 $245 Benefit ratio (1)62.8 56.2 55.1 Employer voluntary benefits (2)$85 $100 $124 Group health (3)71 95 90 Individual health (4)30 $47 31 Adjusted net income$186 $242 $245 Policies in forceEmployer voluntary benefits (2)3,464 3,590 3,783 Group health (3)140 136 119 Individual health (4)471 417 394 Policies in force as of December 31 (in thousands)4,075 4,143 4,296",
      "prior_body": "Allstate Health and Benefits offers employer voluntary benefits, group health and individual health products, including life, accident, critical illness, hospital indemnity, short-term disability and other health products. In 2023, Allstate Health and Benefits represented 2.1% of total PIF. Our target customers are consumers with family and financial protection needs. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information. Effective January 1, 2023, we adopted the FASB guidance revising the accounting for certain long-duration insurance contracts in the Allstate Health and Benefits segment using the modified retrospective approach at the transition date of January 1, 2021. See Note 2 of the consolidated financial statements for further information regarding the impact of the adopted accounting standard on our consolidated financial statements. Summarized financial informationFor the years ended December 31,($ in millions)202320222021RevenuesAccident and health insurance premiums and contract charges$1,846 $1,832 $1,834 Other revenue447 402 359 Net investment income82 69 74 Costs and expensesAccident, health and other policy benefits(1,071)(1,042)(1,060)Amortization of DAC(150)(136)(128)Operating costs and expenses(842)(814)(787)Restructuring and related charges(7)(2)(9)Income tax expense on operations(63)(64)(60)Adjusted net income$242 $245 $223 Benefit ratio (1)56.2 55.1 55.9 Employer voluntary benefits (2)3,590 3,783 3,804 Group health (3)136 119 122 Individual health (4)417 394 407 Policies in force as of December 31 (in thousands)4,143 4,296 4,333"
    },
    {
      "status": "MODIFIED",
      "current_title": "2024 Operating priorities and results",
      "prior_title": "2023 Operating Priorities and Results",
      "similarity_score": 0.603,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Allstate continued to focus on its operating priorities while successfully executing a comprehensive plan to improve auto insurance profitability and making substantial progress in advancing Transformative Growth.\""
      ],
      "current_body": "Allstate continued to focus on its operating priorities while successfully executing a comprehensive plan to improve auto insurance profitability and making substantial progress in advancing Transformative Growth. The table below summarizes the results of our 2024 Operating Priorities. 2024 Operating priorities (1)Grow Customer BaseAchieve 2024 Plan Growth ObjectivesConsolidated policies in force reached 208 million, a 7.2% increase from prior year. Allstate Protection policies in force decreased by 0.6% compared to the prior year, as continued growth in the homeowners insurance business was more than offset by declines in the auto insurance business.Protection Services policies in force and revenue increased 9.3% and 16.7%, respectively, primarily due to growth at Allstate Protection Plans through expanding distribution relationships and protection offerings.Achieve Target Economic Returns on CapitalAchieve 2024 Plan ReturnsReturn on average Allstate common shareholders’ equity was 25.8% in 2024.Total return on the $72.61 billion investment portfolio was 3.8% in 2024. Proactive portfolio management repositioned the fixed income portfolio into longer duration and higher-yielding assets to increase income.The Property-Liability combined ratio of 94.3 for the full year decreased compared to the prior year primarily reflecting successful execution of the Company’s comprehensive auto insurance profitability plan and lower catastrophe losses.Execute Transformative GrowthImprove Customer ValueEnterprise Net Promoter Score, which measures how likely customers are to recommend Allstate, finished below the prior year, reflecting the impact of substantial price increases necessary to offset higher loss costs.Improved over 25 million customer interactions.Expand Customer AccessIncreased auto insurance new issued applications in all channels.National General continues to build a strong competitive position in independent agent distribution with successful expansion on non-standard auto sales and roll-out of our auto and home Custom360 product now available in 30 states.Increase Sophistication and Investment in Customer AcquisitionIncreased advertising and reduced underwriting restrictions as higher average premium outpaced increased loss costs per policy.Deploy New Technology EcosystemsContinued roll-out of Affordable, Simple and Connected auto insurance offering now available in 31 states for auto, 28 states for renters and Affordable, Simple and Connected homeowners insurance offering now available in 4 states.Continued to build a digital enterprise by expanding utilization of machine-based learning and artificial intelligence.Drive Organizational TransformationStreamlined the organization by reducing bureaucracy, risk aversion and organizational silos.",
      "prior_body": "Allstate continued to focus on its operating priorities while executing a comprehensive plan to improve auto insurance profitability. The table below summarizes the results of our 2023 Operating Priorities. 2023 Operating Priorities (1)Improve Customer ValueEnterprise Net Promoter Score, which measures how likely customers are to recommend Allstate, finished below the prior year, reflecting the impact of substantial price increases necessary to offset higher loss costs.Grow Customer BaseConsolidated policies in force reached 194 million, a 2.8% increase from prior year. Property-Liability policies in force decreased by 2.0% compared to the prior year, as continued growth at National General was more than offset by the Allstate brand and renewals declined in the auto insurance business.Protection Services policies in force increased 4.3%, primarily due to growth at Allstate Protection Plans.Achieve Target Economic Returns on CapitalReturn on average Allstate common shareholders’ equity was (2.0)% in 2023.The Property-Liability combined ratio of 104.5 for the full year decreased compared to the prior year primarily reflecting increased premiums earned, partially offsetting continued high loss costs. A comprehensive profitability plan is being executed.Proactively Manage InvestmentsNet investment income of $2.48 billion in 2023 was $75 million higher than prior year as higher market-based investment income was partially offset by lower performance-based results.Total return on the $66.68 billion investment portfolio was 6.7% in 2023. Proactive portfolio management repositioned the fixed income portfolio into longer duration and higher-yielding assets that sustainably increase income.Execute Transformative GrowthAllstate made substantial progress in advancing Transformative Growth in 2023, including continued cost reductions, deploying a new property-liability technology platform and a new Affordable, Simple and Connected auto insurance offering in seven states.National General is building a strong competitive position in independent agent distribution.Build a digital enterprise by expanding utilization of machine-based learning and artificial intelligence."
    },
    {
      "status": "MODIFIED",
      "current_title": "Portfolio composition by investment strategy",
      "prior_title": "Portfolio composition by investment strategy",
      "similarity_score": 0.542,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"During 2024, strategic actions focused on optimizing portfolio yield, risk and return in the evolving market and macroeconomic environment.\""
      ],
      "current_body": "During 2024, strategic actions focused on optimizing portfolio yield, risk and return in the evolving market and macroeconomic environment. The sustained higher market yields provided an opportunity to increase risk-adjusted returns, so we extended the fixed income portfolio duration to 5.3 years (including the effect of interest rate derivatives and any call features associated with the securities) during 2024 from 4.8 years as of December 31, 2023. We increased public equity securities by $2.05 billion in 2024. The Allstate Corporation 63 The Allstate Corporation 63 The Allstate Corporation 63 2024 Form 10-K Investments 2024 Form 10-K Investments",
      "prior_body": "During 2023, strategic actions focused on optimizing portfolio yield, return and risk in the more volatile and rising interest rate environment. The sustained higher market yields provide an opportunity to increase risk-adjusted returns, so we extended the fixed income portfolio duration to 4.8 years (including the effect of interest rate derivatives and any call features associated with the securities) during 2023 from 3.4 years as of December 31, 2022. Considering the ongoing risk of recession, we retained a lower allocation to high-yield bonds, bank loans and public equity relative to year-end 2022. We maintained performance-based investments in the Property-Liability portfolio. During 2023, strategic actions focused on optimizing portfolio yield, return and risk in the more volatile and rising interest rate environment. The sustained higher market yields provide an opportunity to increase risk-adjusted returns, so we extended the fixed income portfolio duration to 4.8 years (including the effect of interest rate derivatives and any call During 2023, strategic actions focused on optimizing portfolio yield, return and risk in the more volatile and rising interest rate environment. The sustained higher market yields provide an opportunity to increase risk-adjusted returns, so we extended the fixed income portfolio duration to 4.8 years (including the effect of interest rate derivatives and any call features associated with the securities) during 2023 from 3.4 years as of December 31, 2022. Considering the ongoing risk of recession, we retained a lower allocation to high-yield bonds, bank loans and public equity relative to year-end 2022. We maintained performance-based investments in the Property-Liability portfolio. features associated with the securities) during 2023 from 3.4 years as of December 31, 2022. Considering the ongoing risk of recession, we retained a lower allocation to high-yield bonds, bank loans and public equity relative to year-end 2022. We maintained performance-based investments in the Property-Liability portfolio."
    },
    {
      "status": "MODIFIED",
      "current_title": "2023 vs 2022",
      "prior_title": "2022 vs 2021",
      "similarity_score": 0.542,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Other costs and expenses, net of other revenue Restructuring and related charges Deferred acquisition costs We establish a DAC asset for costs that are related directly to the acquisition of new or renewal insurance policies, principally agent remuneration and premium taxes.\"",
        "Reworded sentence: \"DAC balance as of December 31 by product type($ in millions)20242023Auto$1,302 $1,207 Homeowners958 890 Other personal lines182 177 Commercial lines31 42 Other business lines75 63 Total DAC$2,548 $2,379\""
      ],
      "current_body": "Other costs and expenses, net of other revenue Restructuring and related charges Deferred acquisition costs We establish a DAC asset for costs that are related directly to the acquisition of new or renewal insurance policies, principally agent remuneration and premium taxes. DAC is amortized to income over the period in which premiums are earned. DAC balance as of December 31 by product type($ in millions)20242023Auto$1,302 $1,207 Homeowners958 890 Other personal lines182 177 Commercial lines31 42 Other business lines75 63 Total DAC$2,548 $2,379",
      "prior_body": "Restructuring and related charges Shelter-in-Place Payback expense Deferred acquisition costs We establish a DAC asset for costs that are related directly to the acquisition of new or renewal insurance policies, principally agent remuneration and premium taxes. DAC is amortized to income over the period in which premiums are earned. DAC balance as of December 31 by product type($ in millions)20232022Auto$1,207 $1,089 Homeowners890 788 Other personal lines177 164 Commercial lines42 54 Other business lines63 51 Total DAC$2,379 $2,146"
    },
    {
      "status": "MODIFIED",
      "current_title": "Expense ratio (2)",
      "prior_title": "Expense ratio (1)",
      "similarity_score": 0.535,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Other personal lines (1) (3) (1)Expense ratio includes other revenue of $223 million, $57 million, and $19 million in 2024, 2023 and 2022, respectively, for fees on involuntary auto policies.\""
      ],
      "current_body": "Other personal lines (1) (3) (1)Expense ratio includes other revenue of $223 million, $57 million, and $19 million in 2024, 2023 and 2022, respectively, for fees on involuntary auto policies. (2)Other revenue is deducted from operating costs and expenses in the expense ratio calculation. (3)Includes anticipated return commissions on lender-placed business due to increased losses. Loss ratios by line of business For the years ended December 31,Loss ratioEffect of catastrophe losses Effect of prior year reserve reestimatesEffect of catastrophe losses included in prior year reserve reestimates 202420232022202420232022202420232022202420232022Auto72.7 82.8 87.2 2.2 2.1 1.7 (1.0)0.7 4.0 (0.1)(0.2)(0.2)Homeowners68.1 85.4 71.1 27.8 38.6 21.6 (2.9)0.8 1.9 (2.4)0.3 0.7 Other personal lines85.9 82.0 79.7 12.8 14.6 12.3 7.7 0.8 (1.5)(0.2)(0.8)0.1 Commercial lines111.5 105.8 120.7 2.8 3.7 2.5 27.3 10.4 24.2 (0.8)1.0 (0.1)Other business lines55.8 48.4 39.5 11.9 7.5 9.1 — 2.2 (1.2)— — 0.8 Total72.4 83.3 83.3 9.2 11.6 7.1 (0.7)1.0 3.6 (0.7)— —",
      "prior_body": "(1)Other revenue is deducted from operating costs and expenses in the expense ratio calculation. Loss ratios by line of business For the years ended December 31,Loss ratioEffect of catastrophe lossesEffect of prior year reserve reestimatesEffect of catastrophe losses included in prior year reserve reestimates 202320222021202320222021202320222021202320222021Auto82.8 87.2 70.5 2.1 1.7 1.7 0.7 4.0 0.5 (0.2)(0.2)(0.1)Homeowners85.4 71.1 73.5 38.6 21.6 27.2 0.8 1.9 (1.4)0.3 0.7 (1.7)Other personal lines82.0 79.7 62.9 14.6 12.3 11.0 0.8 (1.5)(5.1)(0.8)0.1 (0.5)Commercial lines105.8 120.7 97.5 3.7 2.5 2.9 10.4 24.2 14.4 1.0 (0.1)0.4 Other business lines48.4 39.5 38.4 7.5 9.1 5.3 2.2 (1.2)(4.8)— 0.8 0.3 Total83.3 83.3 71.1 11.6 7.1 8.3 1.0 3.6 — — — (0.5)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Amortized cost, net",
      "prior_title": "Amortized cost, net",
      "similarity_score": 0.529,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"The Allstate Corporation 67 The Allstate Corporation 67 The Allstate Corporation 67 2024 Form 10-K Investments 2024 Form 10-K Investments Equity securities by sector($ in millions)December 31, 2024December 31, 2023CostOver (under) costFair valueCostOver (under) costFair valueBanking$119 $41 $160 $30 $38 $68 Basic industry39 (2)37 9 2 11 Capital goods201 (23)178 77 (27)50 Consumer goods462 (25)437 89 17 106 Energy88 1 89 32 3 35 Financial services332 6 338 210 12 222 Funds Equities1,077 22 1,099 258 12 270 Fixed income764 (14)750 1,038 (15)1,023 Other75 (2)73 58 5 63 Total funds1,916 6 1,922 1,354 2 1,356 REITs159 17 176 179 21 200 Technology746 88 834 138 50 188 Utilities92 1 93 59 1 60 Other (1)175 24 199 67 48 115 Total equity securities$4,329 $134 $4,463 $2,244 $167 $2,411 Basic industry Capital goods Consumer goods Equities Fixed income Other\""
      ],
      "current_body": "Banking In general, the gross unrealized losses are related to an increase in market yields, which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase. Similarly, gross unrealized gains reflect a decrease in market yields since the time of initial purchase. The Allstate Corporation 67 The Allstate Corporation 67 The Allstate Corporation 67 2024 Form 10-K Investments 2024 Form 10-K Investments Equity securities by sector($ in millions)December 31, 2024December 31, 2023CostOver (under) costFair valueCostOver (under) costFair valueBanking$119 $41 $160 $30 $38 $68 Basic industry39 (2)37 9 2 11 Capital goods201 (23)178 77 (27)50 Consumer goods462 (25)437 89 17 106 Energy88 1 89 32 3 35 Financial services332 6 338 210 12 222 Funds Equities1,077 22 1,099 258 12 270 Fixed income764 (14)750 1,038 (15)1,023 Other75 (2)73 58 5 63 Total funds1,916 6 1,922 1,354 2 1,356 REITs159 17 176 179 21 200 Technology746 88 834 138 50 188 Utilities92 1 93 59 1 60 Other (1)175 24 199 67 48 115 Total equity securities$4,329 $134 $4,463 $2,244 $167 $2,411 Basic industry Capital goods Consumer goods Equities Fixed income Other",
      "prior_body": "Banking In general, the gross unrealized losses are related to an increase in market yields, which may include increased risk-free interest rates and wider credit spreads since the time of initial purchase. Similarly, gross unrealized gains reflect a decrease in market yields since the time of initial purchase. Equity securities by sector($ in millions)December 31, 2023December 31, 2022CostOver (under) costFair valueCostOver (under) costFair valueBanking$30 $38 $68 $135 $56 $191 Basic Industry9 2 11 57 16 73 Capital Goods77 (27)50 196 3 199 Energy32 3 35 110 44 154 Funds Equities258 12 270 904 (19)885 Fixed income1,038 (15)1,023 1,067 (84)983 Other58 5 63 3 — 3 Total funds1,354 2 1,356 1,974 (103)1,871 Transportation16 $23 39 48 19 67 Utilities59 1 60 67 12 79 Other (1)667 125 792 1,666 267 1,933 Total equity securities$2,244 $167 $2,411 $4,253 $314 $4,567 Equities Fixed income Other"
    },
    {
      "status": "MODIFIED",
      "current_title": "Underwriting income (loss) by line of business",
      "prior_title": "Change in underwriting results from 2021 to 2022",
      "similarity_score": 0.513,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Auto Homeowners Other personal lines (1) Other business lines (2) (1)Include renters, condominium, landlord and other personal lines products.\"",
        "Reworded sentence: \"Premiums written by line of businessFor the years ended December 31,($ in millions)202420232022Auto$37,296 $33,958 $30,666 Homeowners14,416 12,584 11,209 Other personal lines 3,068 2,519 2,249 Commercial lines495 720 1,124 Other business lines 651 566 539 Total premiums written$55,926 $50,347 $45,787\""
      ],
      "current_body": "Auto Homeowners Other personal lines (1) Other business lines (2) (1)Include renters, condominium, landlord and other personal lines products. (2)Other business lines represents commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products, and lender-placed products. Premium measures and statistics include PIF, new issued applications and average premiums to analyze our premium trends. Premiums written is the amount of premiums charged for policies issued during a fiscal period. Premiums are considered earned and are included in the financial results on a pro-rata basis over the policy period. The portion of premiums written applicable to the unexpired term of the policies is recorded as unearned premiums on our Consolidated Statements of Financial Position. Premiums written by line of businessFor the years ended December 31,($ in millions)202420232022Auto$37,296 $33,958 $30,666 Homeowners14,416 12,584 11,209 Other personal lines 3,068 2,519 2,249 Commercial lines495 720 1,124 Other business lines 651 566 539 Total premiums written$55,926 $50,347 $45,787",
      "prior_body": "The Allstate Corporation 43 The Allstate Corporation 43 The Allstate Corporation 43 2023 Form 10-K Allstate Protection 2023 Form 10-K Allstate Protection Underwriting income (loss) by brand and by line of businessFor the years ended December 31,Allstate Brand National GeneralAllstate Protection($ in millions)202320222021202320222021202320222021Auto (1)$(829)$(2,846)$1,208 $(280)$(168)$54 $(1,109)$(3,014)$1,262 Homeowners (2) (624)701 411 (179)(30)(98)(803)671 313 Other personal lines (3)(37)(85)216 (2)(3)17 (39)(88)233 Commercial lines(277)(478)(158)12 14 — (265)(464)(158)Other business lines (4)106 95 115 9 10 6 115 105 121 Answer Financial— — — — — — 11 8 14 Total$(1,661)$(2,613)$1,792 $(440)$(177)$(21)$(2,090)$(2,782)$1,785 Auto (1) Homeowners (2) Other personal lines (3) Other business lines (4) (1)2021 results include certain National General commercial lines insurance products. (2)2021 results include National General packaged policies, which include auto, and commercial lines insurance products. (3)Include renters, condominium, landlord and other personal lines products. (4)Primarily represents revenue and direct operating expenses of Ivantage, distribution of non-proprietary life and annuity products and lender-placed products. Ivantage, a general agency for Allstate exclusive agents, provides agents a solution for their customers when coverage through Allstate brand underwritten products is not available. In the first quarter of 2023, National General lender-placed products results were reclassified to other business lines. Historical results have been updated to conform with this presentation. Premium measures and statistics include PIF, new issued applications, average premiums and renewal ratio to analyze our premium trends. Premiums written is the amount of premiums charged for policies issued during a fiscal period. Premiums are considered earned and are included in the financial results on a pro-rata basis over the policy period. The portion of premiums written applicable to the unexpired term of the policies is recorded as unearned premiums on our Consolidated Statements of Financial Position. Premiums written by brand and line of businessFor the years ended December 31,Allstate BrandNational GeneralAllstate Protection ($ in millions)202320222021202320222021202320222021Auto$27,894 $25,946 $24,102 $6,064 $4,720 $3,763 $33,958 $30,666 $27,865 Homeowners11,018 9,936 8,717 1,566 1,273 1,365 12,584 11,209 10,082 Other personal lines 2,290 2,096 2,001 229 153 155 2,519 2,249 2,156 Commercial lines473 917 848 247 207 — 720 1,124 848 Other business lines — — — 566 539 407 566 539 407 Total premiums written$41,675 $38,895 $35,668 $8,672 $6,892 $5,690 $50,347 $45,787 $41,358"
    },
    {
      "status": "MODIFIED",
      "current_title": "Underwriting results",
      "prior_title": "Underwriting results",
      "similarity_score": 0.505,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Underwriting income was $3.15 billion in 2024 compared to underwriting loss of $2.09 billion in 2023, primarily due to increased premiums earned, favorable reserve reestimates and lower losses, partially offset by higher advertising costs.\""
      ],
      "current_body": "Restructuring and related charges (1) Catastrophe reserve reestimates (2) Non-catastrophe reserve reestimates (2) Prior year reserve reestimates (2) Expense ratio (3) Effect of prior year reserve reestimates on combined ratio Effect of restructuring and related charges on combined ratio (1) (1)Restructuring and related charges in 2024 primarily relate to the organizational transformation component of the Transformative Growth plan. See Note 15 of the consolidated financial statements for additional details. (2)Favorable reserve reestimates are shown in parentheses. (3)Other revenue is deducted from operating costs and expenses in the expense ratio calculation. 40 www.allstate.com 40 www.allstate.com 40 www.allstate.com 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection",
      "prior_body": "Shelter-in-Place Payback expense Restructuring and related charges (1) Catastrophe reserve reestimates (2) Non-catastrophe reserve reestimates (2) Prior year reserve reestimates (2) Expense ratio (3) Effect of prior year reserve reestimates on combined ratio Effect of restructuring and related charges on combined ratio (1) (1)Restructuring and related charges in 2023 primarily relate to implementing actions to streamline the organization and outsource operations, and real estate costs related to facilities being vacated. See Note 14 of the consolidated financial statements for additional details. (2)Favorable reserve reestimates are shown in parentheses. (3)Other revenue is deducted from operating costs and expenses in the expense ratio calculation. 42 www.allstate.com 42 www.allstate.com 42 www.allstate.com 2023 Form 10-K Allstate Protection 2023 Form 10-K Allstate Protection"
    },
    {
      "status": "MODIFIED",
      "current_title": "Improve Customer Value",
      "prior_title": "Improve Customer Value",
      "similarity_score": 0.503,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Improved over 25 million customer interactions.\""
      ],
      "current_body": "Enterprise Net Promoter Score, which measures how likely customers are to recommend Allstate, finished below the prior year, reflecting the impact of substantial price increases necessary to offset higher loss costs. Improved over 25 million customer interactions.",
      "prior_body": "Enterprise Net Promoter Score, which measures how likely customers are to recommend Allstate, finished below the prior year, reflecting the impact of substantial price increases necessary to offset higher loss costs. Consolidated policies in force reached 194 million, a 2.8% increase from prior year. Property-Liability policies in force decreased by 2.0% compared to the prior year, as continued growth at National General was more than offset by the Allstate brand and renewals declined in the auto insurance business. Protection Services policies in force increased 4.3%, primarily due to growth at Allstate Protection Plans. Return on average Allstate common shareholders’ equity was (2.0)% in 2023. The Property-Liability combined ratio of 104.5 for the full year decreased compared to the prior year primarily reflecting increased premiums earned, partially offsetting continued high loss costs. A comprehensive profitability plan is being executed. Net investment income of $2.48 billion in 2023 was $75 million higher than prior year as higher market-based investment income was partially offset by lower performance-based results. Total return on the $66.68 billion investment portfolio was 6.7% in 2023. Proactive portfolio management repositioned the fixed income portfolio into longer duration and higher-yielding assets that sustainably increase income."
    },
    {
      "status": "MODIFIED",
      "current_title": "2024 vs. 2023",
      "prior_title": "2022 vs. 2021",
      "similarity_score": 0.5,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Exclusive agency Independent agency Direct Homeowners insurance premiums written increased 14.6% or $1.83 billion in 2024 compared to 2023, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth•In 2024 rate increases of 14.5% were implemented in 53 locations, resulting in total insurance premium impact of 11.0%•Increased new issued applications in the exclusive agency and direct channelsPolicy growth is being driven primarily by the Allstate brand and is geographically widespread.\""
      ],
      "current_body": "Exclusive agency Independent agency Direct Homeowners insurance premiums written increased 14.6% or $1.83 billion in 2024 compared to 2023, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth•In 2024 rate increases of 14.5% were implemented in 53 locations, resulting in total insurance premium impact of 11.0%•Increased new issued applications in the exclusive agency and direct channelsPolicy growth is being driven primarily by the Allstate brand and is geographically widespread. We are not writing new homeowners business in California and Florida and we did not write new homeowners business in New Jersey in 2024. We are also non-renewing certain policies in Florida. We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association. Homeowners insurance premiums written increased 14.6% or $1.83 billion in 2024 compared to 2023, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth•In 2024 rate increases of 14.5% were implemented in 53 locations, resulting in total insurance premium impact of 11.0%•Increased new issued applications in the exclusive agency and direct channelsPolicy growth is being driven primarily by the Allstate brand and is geographically widespread. We Homeowners insurance premiums written increased 14.6% or $1.83 billion in 2024 compared to 2023, primarily due to the following factors: •Higher Allstate brand average premiums from implemented rate increases, combined with policies in force growth •In 2024 rate increases of 14.5% were implemented in 53 locations, resulting in total insurance premium impact of 11.0% •Increased new issued applications in the exclusive agency and direct channels Policy growth is being driven primarily by the Allstate brand and is geographically widespread. We are not writing new homeowners business in California and Florida and we did not write new homeowners business in New Jersey in 2024. We are also non-renewing certain policies in Florida. We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns.National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association. are not writing new homeowners business in California and Florida and we did not write new homeowners business in New Jersey in 2024. We are also non-renewing certain policies in Florida. We may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk adjusted returns. National General policy growth may be negatively impacted as we improve underwriting margins to targeted levels through underwriting and rate actions. See Note 9 for additional details on actions taken related to Adirondack Insurance Exchange and New Jersey Skylands Insurance Association. Homeowners premium measures and statistics2024202320222024 vs. 2023New issued applications (thousands) Allstate Protection by channelExclusive agency946 800 826 18.3 %Independent agency226 232 202 (2.6)Direct133 79 94 68.4 Total new issued applications 1,305 1,111 1,122 17.5 Allstate brand average premium$2,021 $1,812 $1,614 11.5 %",
      "prior_body": "Exclusive agency channel The Allstate Corporation 45 The Allstate Corporation 45 The Allstate Corporation 45 2023 Form 10-K Allstate Protection 2023 Form 10-K Allstate Protection Homeowners insurance premiums written increased 12.3% or $1.38 billion in 2023 compared to 2022, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases taken in 2022 and 2023 and inflation in insured home replacement costs, combined with policies in force growth•In 2023 rate increases of 15.0% were taken for Allstate brand in 49 locations, resulting in total Allstate brand insurance premium impact of 11.3%•National General policy growth may be negatively impacted in future quarters as we improve underwriting margins to targeted levels in the current books of business through underwriting and rate actions. In 2023 rate increases of 23.4% were taken for National General brand in 32 locations, resulting in total National General brand insurance premium impact of 11.0%•Decreased new issued applications in the direct and exclusive agency channels, partially offset by growth in the independent agency channel•Policy growth is being reduced in states and lines of business that are underperforming. We are no longer writing new homeowners business in California and Florida, and we are non-renewing certain policies in Florida to reduce our exposure, which have and will continue to negatively impact premiums•The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth Homeowners insurance premiums written increased 12.3% or $1.38 billion in 2023 compared to 2022, primarily due to the following factors:•Higher Allstate brand average premiums from implemented rate increases taken in 2022 and 2023 and inflation in insured home replacement costs, combined with policies in force growth•In 2023 rate increases of 15.0% were taken for Allstate brand in 49 locations, resulting in total Allstate brand insurance premium impact of 11.3%•National General policy growth may be negatively impacted in future quarters as we improve underwriting margins to targeted levels in the current books of business through underwriting and rate actions. In 2023 rate increases of 23.4% were taken for National General brand in 32 locations, resulting in total National General brand insurance premium impact of 11.0% Homeowners insurance premiums written increased 12.3% or $1.38 billion in 2023 compared to 2022, primarily due to the following factors: •Higher Allstate brand average premiums from implemented rate increases taken in 2022 and 2023 and inflation in insured home replacement costs, combined with policies in force growth •In 2023 rate increases of 15.0% were taken for Allstate brand in 49 locations, resulting in total Allstate brand insurance premium impact of 11.3% •National General policy growth may be negatively impacted in future quarters as we improve underwriting margins to targeted levels in the current books of business through underwriting and rate actions. In 2023 rate increases of 23.4% were taken for National General brand in 32 locations, resulting in total National General brand insurance premium impact of 11.0% •Decreased new issued applications in the direct and exclusive agency channels, partially offset by growth in the independent agency channel•Policy growth is being reduced in states and lines of business that are underperforming. We are no longer writing new homeowners business in California and Florida, and we are non-renewing certain policies in Florida to reduce our exposure, which have and will continue to negatively impact premiums•The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth •Decreased new issued applications in the direct and exclusive agency channels, partially offset by growth in the independent agency channel •Policy growth is being reduced in states and lines of business that are underperforming. We are no longer writing new homeowners business in California and Florida, and we are non-renewing certain policies in Florida to reduce our exposure, which have and will continue to negatively impact premiums •The impact of the ongoing rate increases, underwriting restrictions in markets with returns below target levels and temporary reductions in advertising have and may continue to have an adverse effect on the renewal ratio, premiums and future PIF growth Homeowners premium measures and statistics2023202220212023 vs. 20222022 vs. 2021New issued applications (thousands) Allstate Protection by brandAllstate brand934 986 962 (5.3)%2.5 %National General177 136 102 30.1 %33.3 %Total new issued applications1,111 1,122 1,064 (1.0)%5.5 %Allstate Protection by channelExclusive agency channel800 826 840 (3.1)%(1.7)%Direct channel79 94 84 (16.0)%11.9 %Independent agency channel232 202 140 14.9 %44.3 %Total new issued applications 1,111 1,122 1,064 (1.0)%5.5 %Allstate brand average premium$1,812 $1,614 $1,426 12.3 %13.2 %Allstate brand renewal ratio (%) 86.7 86.8 87.1 (0.1)(0.3)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Premiums written by line of business",
      "prior_title": "Premiums written by brand and line of business",
      "similarity_score": 0.471,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Premiums earned by line of businessFor the years ended December 31,($ in millions)202420232022Auto$36,475 $32,940 $29,715 Homeowners13,360 11,739 10,418 Other personal lines2,823 2,387 2,159 Commercial lines609 811 1,123 Other business lines599 550 494 Total premiums earned$53,866 $48,427 $43,909\""
      ],
      "current_body": "Premiums earned by line of businessFor the years ended December 31,($ in millions)202420232022Auto$36,475 $32,940 $29,715 Homeowners13,360 11,739 10,418 Other personal lines2,823 2,387 2,159 Commercial lines609 811 1,123 Other business lines599 550 494 Total premiums earned$53,866 $48,427 $43,909",
      "prior_body": "Premiums earned by brand and line of businessFor the years ended December 31,Allstate BrandNational GeneralAllstate Protection ($ in millions)202320222021202320222021202320222021Auto$27,384 $25,286 $24,088 $5,556 $4,429 $3,535 $32,940 $29,715 $27,623 Homeowners10,333 9,249 8,272 1,406 1,169 1,280 11,739 10,418 9,552 Other personal lines2,179 2,016 1,925 208 143 152 2,387 2,159 2,077 Commercial lines593 919 827 218 204 — 811 1,123 827 Other business lines— — — 550 494 375 550 494 375 Total premiums earned$40,489 $37,470 $35,112 $7,938 $6,439 $5,342 $48,427 $43,909 $40,454"
    },
    {
      "status": "MODIFIED",
      "current_title": "Employer voluntary benefits",
      "prior_title": "Operating costs and expenses",
      "similarity_score": 0.468,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Group health Individual health Total Non-deferrable commissions Operating costs and expenses Non-deferrable commissions Operating costs and expenses Non-deferrable commissions Operating costs and expenses Operating costs and expenses increased $73 million in 2024 compared to 2023, primarily due to growth in individual health and group health.\""
      ],
      "current_body": "Group health Individual health Total Non-deferrable commissions Operating costs and expenses Non-deferrable commissions Operating costs and expenses Non-deferrable commissions Operating costs and expenses Operating costs and expenses increased $73 million in 2024 compared to 2023, primarily due to growth in individual health and group health. The Allstate Corporation 61 The Allstate Corporation 61 The Allstate Corporation 61 2024 Form 10-K Investments 2024 Form 10-K Investments",
      "prior_body": "Operating costs and expenses increased $28 million in 2023 compared to 2022, primarily due to growth in group health and investments in the employer voluntary benefits business."
    },
    {
      "status": "MODIFIED",
      "current_title": "Total funds",
      "prior_title": "Total funds",
      "similarity_score": 0.467,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Other (1) (1) Other is comprised of transportation and communications sectors.\""
      ],
      "current_body": "Other (1) (1) Other is comprised of transportation and communications sectors. Net investment incomeFor the years ended December 31,($ in millions)202420232022Fixed income securities$2,298 $1,761 $1,255 Equity securities77 75 132 Mortgage loans36 35 33 Limited partnership interests600 499 985 Short-term investments290 253 82 Other investments106 169 162 Investment income, before expense3,407 2,792 2,649 Investment expenseInvestee level expenses(61)(79)(68)Securities lending expense(103)(93)(30)Operating costs and expenses(151)(142)(148)Total investment expense(315)(314)(246)Net investment income$3,092 $2,478 $2,403 Property-Liability$2,810 $2,218 $2,190 Protection Services94 73 48 Allstate Health and Benefits100 82 69 Corporate and Other88 105 96 Net investment income$3,092 $2,478 $2,403 Market-based$2,728 $2,219 $1,566 Performance-based679 573 1,083 Investment income, before expense$3,407 $2,792 $2,649",
      "prior_body": "Other (1) (1) Other is comprised of consumer goods, technology, REITs, financial services and communications sectors. The Allstate Corporation 71 The Allstate Corporation 71 The Allstate Corporation 71 2023 Form 10-K Investments 2023 Form 10-K Investments Net investment incomeFor the years ended December 31,($ in millions)202320222021Fixed income securities$1,761 $1,255 $1,148 Equity securities75 132 100 Mortgage loans35 33 43 Limited partnership interests499 985 1,973 Short-term investments253 82 5 Other investments169 162 195 Investment income, before expense2,792 2,649 3,464 Investment expenseInvestee level expenses(79)(68)(60)Securities lending expense(93)(30)— Operating costs and expenses(142)(148)(111)Total investment expense(314)(246)(171)Net investment income$2,478 $2,403 $3,293 Property-Liability$2,218 $2,190 $3,118 Protection Services73 48 43 Allstate Health and Benefits82 69 74 Corporate and Other105 96 58 Net investment income$2,478 $2,403 $3,293 Market-based$2,219 $1,566 $1,429 Performance-based573 1,083 2,035 Investment income, before expense$2,792 $2,649 $3,464"
    },
    {
      "status": "MODIFIED",
      "current_title": "Investment income, before expense",
      "prior_title": "Investment income, before expense",
      "similarity_score": 0.46,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Net investment income increased 24.8% or $614 million in 2024 compared to 2023, primarily due to higher results for both the market-based and performance-based strategies.\""
      ],
      "current_body": "Net investment income increased 24.8% or $614 million in 2024 compared to 2023, primarily due to higher results for both the market-based and performance-based strategies. Market-based investment results continue to benefit from portfolio repositioning into higher yielding fixed income securities and higher investment balances. 68 www.allstate.com 68 www.allstate.com 68 www.allstate.com 2024 Form 10-K Investments 2024 Form 10-K Investments",
      "prior_body": "Net investment income increased 3.1% or $75 million in 2023 compared to 2022, primarily due to higher market-based results driven by reinvesting into fixed income securities with higher yields and to a lesser extent, the reinvestment of proceeds from sales of equity securities into fixed income securities, partially offset by lower performance-based results, mainly from limited partnerships."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Allstate Health and Benefits",
      "prior_title": "Allstate Health and Benefits",
      "current_body": "Corporate and Other Fixed income securities (2) Equity securities (3) Short-term investments (4)"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Other reinsurance recoverables, net (3)",
      "prior_title": "Protection Services",
      "current_body": "Lloyd’s of London N/A A+ Westport Insurance Corporation AA- A+ AA- Protection Services (1)N/A reflects no S&P Global Ratings (“S&P”) or A.M. Best ratings available. (2)As of December 31, 2024 and 2023, MCCA includes $71 million and $62 million of reinsurance recoverable on paid claims, respectively, and $6.41 billion and $6.36 billion of reinsurance recoverable on unpaid claims, respectively. (3)Other reinsurance recoverables primarily relate to commercial lines, including shared economy, as well as asbestos, environmental and other liability exposures. Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. The Company has not had any credit losses related to these programs, and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers.The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $63 million and $62 million as of December 31, 2024 and 2023, respectively. Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance Reinsurance and indemnification recoverables include an estimate of the amount of insurance claims and claims expense reserves that are ceded under the terms of the agreements, including IBNR unpaid losses. We calculate our ceded reinsurance and indemnification estimates based on the terms of each applicable agreement, including an estimate of how IBNR losses will ultimately be ceded under the agreement. We also consider other limitations and coverage exclusions under our agreements. Accordingly, our estimate of recoverables is subject to similar risks and uncertainties as our estimate of reserves for claims and claims expense. We believe the recoverables are appropriately established; however, as our underlying reserves continue to develop, the amount ultimately recoverable may vary from amounts currently recorded. We regularly evaluate the reinsurers and the respective amounts of our reinsurance recoverables, and a provision for uncollectible reinsurance recoverables is recorded, if needed. The establishment of reinsurance recoverables and the related allowance for uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. The Company has not had any credit losses related to these programs, and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers.The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $63 million and $62 million as of December 31, 2024 and 2023, respectively. recoverables and the related allowance for uncollectible reinsurance is also an inherently uncertain process involving estimates. Changes in estimates could result in additional changes to the Consolidated Statements of Operations. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. The Company has not had any credit losses related to these programs, and we do not anticipate losses in the foreseeable future. We also have not experienced credit losses on our catastrophe reinsurance programs, which include highly rated reinsurers. The allowance for uncollectible reinsurance relates to other reinsurance programs primarily related to our Run-off Property-Liability segment. The allowance was $63 million and $62 million as of December 31, 2024 and 2023, respectively. The Allstate Corporation 57 The Allstate Corporation 57 The Allstate Corporation 57 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables.For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 12 of the consolidated financial statements. The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. The allowance is based upon our ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors. In addition, in the ordinary course of business, we may become involved in coverage disputes with certain of our reinsurers that may ultimately result in lawsuits and arbitrations brought by or against such reinsurers to determine the parties’ rights and obligations under the various reinsurance agreements. We employ dedicated specialists to manage reinsurance collections and disputes. We also consider recent developments in commutation activity between reinsurers and cedents, and recent trends in arbitration and litigation outcomes in disputes between cedents and reinsurers in seeking to maximize our reinsurance recoveries. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables.For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 12 of the consolidated financial statements. Adverse developments in the insurance industry have led to a decline in the financial strength of some of our reinsurance carriers, causing amounts recoverable from them and future claims ceded to them to be considered a higher risk. There has also been consolidation activity in the industry, which causes reinsurance risk across the industry to be concentrated among fewer companies. See Note 2 of the consolidated financial statements for a description of the methodology utilized to calculate the allowance for reinsurance recoverables. For further details related to our reinsurance and indemnification recoverables, see the Regulation section in Part I and Note 12 of the consolidated financial statements. Effects of reinsurance ceded and indemnification programs on premiums earned and claims and claims expenseFor the years ended December 31,($ in millions)202420232022Allstate Protection - PremiumsIndemnification programsState-based industry pool or facility programsNCRF$441 $323 $300 MCCA26 29 18 PLIGA8 7 7 FHCF23 28 24 Other1 1 — Federal Government - NFIP (1)368 327 319 Catastrophe reinsurance1,088 995 764 Other reinsurance programs 93 110 261 Total Allstate Protection2,048 1,820 1,693 Run-off Property-Liability— — — Total Property-Liability2,048 1,820 1,693 Protection Services162 169 176 Total effect on premiums earned$2,210 $1,989 $1,869 Allstate Protection - ClaimsIndemnification programsState-based industry pool or facility programsMCCA$180 $(185)$116 NCRF425 379 294 PLIGA60 14 (24)FHCF(1)(6)74 Other 1 1 — Federal Government - NFIP (1)618 102 435 Catastrophe reinsurance 198 32 298 Other reinsurance programs97 151 261 Total Allstate Protection1,578 488 1,454 Run-off Property-Liability2 29 50 Total Property-Liability1,580 517 1,504 Protection Services136 116 96 Total effect on claims and claims expense$1,716 $633 $1,600"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Fixed income securities by type",
      "prior_title": "Fixed income securities by type",
      "current_body": "Fixed income securities are rated by third-party credit rating agencies or are internally rated. The Securities Valuation Office (“SVO”) of the National Association of Insurance Commissioners (“NAIC”) evaluates the fixed income securities of insurers for regulatory reporting and capital assessment purposes. The NAIC assigns securities to one of six credit quality categories defined as “NAIC designations”. In general, securities with NAIC designations of 1 and 2 are considered investment grade and securities with NAIC designations of 3 through 6 are considered below investment grade. The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings (“Fitch”) or a comparable internal rating.As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the portfolio includes certain securities that have not yet been designated by the SVO as of each balance sheet date and the categorization of these securities is based on the expected ratings indicated by internal analysis.As of December 31, 2024, 91.3% of the consolidated fixed income securities portfolio was rated investment grade. Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Our initial investment decisions and ongoing monitoring procedures for fixed income securities are based on a due diligence process which includes, but is not limited to, an assessment of the credit quality, sector, structure and liquidity risks of each issuer.Fixed income portfolio monitoring is a comprehensive process to identify and evaluate each fixed income security that may require a credit loss allowance. The process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. For further detail on our fixed income portfolio monitoring process, see Note 6 of the consolidated financial statements. Fixed income securities are rated by third-party credit rating agencies or are internally rated. The Securities Valuation Office (“SVO”) of the National Association of Insurance Commissioners (“NAIC”) evaluates the fixed income securities of insurers for regulatory reporting and capital assessment purposes. The NAIC assigns securities to one of six credit quality categories defined as “NAIC designations”. In general, securities with NAIC designations of 1 and 2 are considered investment grade and securities with NAIC designations of 3 through 6 are considered below investment grade. The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings (“Fitch”) or a comparable internal rating.As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the portfolio includes certain securities that have not yet been designated by the SVO as of each balance sheet date and the categorization of these securities is based on the expected ratings indicated by internal analysis. Fixed income securities are rated by third-party credit rating agencies or are internally rated. The Securities Valuation Office (“SVO”) of the National Association of Insurance Commissioners (“NAIC”) evaluates the fixed income securities of insurers for regulatory reporting and capital assessment purposes. The NAIC assigns securities to one of six credit quality categories defined as “NAIC designations”. In general, securities with NAIC designations of 1 and 2 are considered investment grade and securities with NAIC designations of 3 through 6 are considered below investment grade. The rating is either received from the SVO based on availability of applicable ratings from rating agencies on the NAIC Nationally Recognized Statistical Rating Organizations provider list, including Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), Fitch Ratings (“Fitch”) or a comparable internal rating. As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the portfolio includes certain securities that have not yet been designated by the SVO as of each balance sheet date and the categorization of these securities is based on the expected ratings indicated by internal analysis. As of December 31, 2024, 91.3% of the consolidated fixed income securities portfolio was rated investment grade. Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Our initial investment decisions and ongoing monitoring procedures for fixed income securities are based on a due diligence process which includes, but is not limited to, an assessment of the credit quality, sector, structure and liquidity risks of each issuer.Fixed income portfolio monitoring is a comprehensive process to identify and evaluate each fixed income security that may require a credit loss allowance. The process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. For further detail on our fixed income portfolio monitoring process, see Note 6 of the consolidated financial statements. As of December 31, 2024, 91.3% of the consolidated fixed income securities portfolio was rated investment grade. Credit ratings below these designations are considered lower credit quality or below investment grade, which includes high yield bonds. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Our initial investment decisions and ongoing monitoring procedures for fixed income securities are based on a due diligence process which includes, but is not limited to, an assessment of the credit quality, sector, structure and liquidity risks of each issuer. Fixed income portfolio monitoring is a comprehensive process to identify and evaluate each fixed income security that may require a credit loss allowance. The process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. For further detail on our fixed income portfolio monitoring process, see Note 6 of the consolidated financial statements. 64 www.allstate.com 64 www.allstate.com 64 www.allstate.com 2024 Form 10-K Investments 2024 Form 10-K Investments The following table presents total fixed income securities by the applicable NAIC designation and comparable S&P rating. Fair value and unrealized net capital gains (losses) for fixed income securities by credit ratingDecember 31, 2024NAIC 1NAIC 2NAIC 3A and aboveBBBBB($ in millions)FairvalueUnrealized gain (loss)FairvalueUnrealized gain (loss)FairvalueUnrealized gain (loss)U.S. government and agencies$11,108 $(315)$— $— $— $— Municipal8,709 (143)131 (2)— — CorporatePublic6,089 (29)14,529 (299)525 (8)Privately placed1,769 (22)3,315 (56)2,427 (19)Total corporate7,858 (51)17,844 (355)2,952 (27)Foreign government1,364 12 — — — — ABS1,138 1 22 — 27 — Total fixed income securities$30,177 $(496)$17,997 $(357)$2,979 $(27)NAIC 4NAIC 5-6TotalBCCC and lowerFairvalueUnrealized gain (loss)FairvalueUnrealized gain (loss)FairvalueUnrealized gain (loss)U.S. government and agencies$— $— $— $— $11,108 $(315)Municipal— — 2 2 8,842 (143)CorporatePublic84 (1)6 — 21,233 (337)Privately placed1,337 (2)111 (2)8,959 (101)Total corporate1,421 (3)117 (2)30,192 (438)Foreign government— — — — 1,364 12 ABS1 — 53 14 1,241 15 Total fixed income securities$1,422 $(3)$172 $14 $52,747 $(869)"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Investments",
      "prior_title": "Investments",
      "current_body": "Overview and strategyThe return on our investment portfolios is an important component of our ability to offer value to customers, fund business improvements and create value for shareholders. Investment portfolios are held for Property-Liability, Protection Services, Allstate Health and Benefits and Corporate and Other operations. While taking into consideration the investment portfolio in aggregate, management of the underlying portfolios is significantly influenced by the nature of each respective business and its corresponding liability profile. For each business, we identify a strategic asset allocation which considers both the nature of the liabilities and the risk and return characteristics of the various asset classes in which we invest. This allocation is informed by our long-term business and market expectations, as well as other considerations such as risk appetite, portfolio diversification, duration, desired liquidity and capital. Within appropriate ranges relative to strategic allocations, tactical allocations are made in consideration of prevailing and potential future market conditions. We manage risks that involve uncertainty related to interest rates, inflation, credit spreads, equity returns and currency exchange rates.The Property-Liability portfolio emphasizes protection of principal and consistent income generation within a total return framework. This approach has produced competitive returns over the long term and is designed to ensure financial strength and stability for paying claims, while maximizing economic value and surplus growth. Products with lower liquidity and capital needs, such as auto insurance and run-off lines, create capacity to invest in less liquid higher yielding fixed income securities, performance-based investments such as limited partnerships and equity securities. Products with higher liquidity needs, such as homeowners insurance, are invested primarily in high quality liquid fixed income securities.The Protection Services portfolio is focused on protection of principal and consistent income generation within a total return framework. The portfolio is largely comprised of fixed income securities with a lesser allocation to equity securities and short-term investments.The Allstate Health and Benefits portfolio is focused on protection of principal and consistent income generation within a total return framework. The portfolio is largely comprised of fixed income securities with a small allocation to short-term investments.The Corporate and Other portfolio is primarily focused on liquidity needs and capital preservation within a total return framework. The portfolio is largely comprised of high-quality liquid fixed income securities and short-term investments with a lower allocation to performance-based and equity investments.We utilize two primary strategies to manage risks and returns and to position our portfolio to take advantage of market opportunities while attempting to mitigate adverse effects. As strategies and market conditions evolve, the asset allocation may change.Market-based strategy seeks to deliver predictable earnings aligned to business needs and provide flexibility to adjust investment risk profile based on enterprise objectives and market opportunities primarily through public and private fixed income investments and public equity securities.Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk. Consequently, return patterns can be more volatile than the market-based portfolio. Returns are impacted by a variety of factors including general macroeconomic and public market conditions as public benchmarks are often used in the valuation of underlying investments. Variability in earnings will also result from the performance of the underlying assets or business and the timing of sales of those investments. Earnings from the sales of investments may be recorded as net investment income or net gains and losses on investments and derivatives. The portfolio, which primarily includes private equity (including infrastructure investments) and real estate with a majority being limited partnerships, is diversified across a number of characteristics, including managers or partners, vintage years, investment strategies, geographies (including international) and industry sectors or property types. These investments are generally illiquid in nature, often require specialized expertise, typically involve a third-party manager, and enhance returns and income through transformation at the company or property level. A portion of these investments seek returns in markets or asset classes that are dislocated or special situations, primarily in private markets.Investments outlook Our focus is on the following priorities:•Enhance investment portfolio returns through use of a dynamic capital allocation framework and focus on tax efficiency.•Leverage our broad capabilities to manage the portfolio to earn higher risk-adjusted returns on capital.•Invest for the specific needs and characteristics of Allstate’s businesses, including its corresponding liability profile.We utilize our integrated enterprise risk and return management framework to determine the amount of investment risk we are willing to accept. Beginning in 2023, we extended the fixed income portfolio duration as the sustained higher market yields provided an opportunity to increase risk-adjusted returns. In 2024, we increased public equity securities by $2.05 billion primarily funded through the sale of investment grade corporate bonds and short-term investments. Overview and strategyThe return on our investment portfolios is an important component of our ability to offer value to customers, fund business improvements and create value for shareholders. Investment portfolios are held for Property-Liability, Protection Services, Allstate Health and Benefits and Corporate and Other operations. While taking into consideration the investment portfolio in aggregate, management of the underlying portfolios is significantly influenced by the nature of each respective business and its corresponding liability profile. For each business, we identify a strategic asset allocation which considers both the nature of the liabilities and the risk and return characteristics of the various asset classes in which we invest. This allocation is informed by our long-term business and market expectations, as well as other considerations such as risk appetite, portfolio diversification, duration, desired liquidity and capital. Within appropriate ranges relative to strategic allocations, tactical allocations are made in consideration of prevailing and potential future market conditions. We manage risks that involve uncertainty related to interest rates, inflation, credit spreads, equity returns and currency exchange rates.The Property-Liability portfolio emphasizes protection of principal and consistent income generation within a total return framework. This approach has produced competitive returns over the long term and is designed to ensure financial strength and stability for paying claims, while maximizing economic value and surplus growth. Products with lower liquidity and capital needs, such as auto insurance and run-off lines, create capacity to invest in less liquid higher yielding fixed income securities, performance-based investments such as limited partnerships and equity securities. Products with higher liquidity needs, such as homeowners insurance, are invested primarily in high quality liquid fixed income securities.The Protection Services portfolio is focused on protection of principal and consistent income generation within a total return framework. The portfolio is largely comprised of fixed income securities with a lesser allocation to equity securities and short-term investments.The Allstate Health and Benefits portfolio is focused on protection of principal and consistent income generation within a total return framework. The portfolio is largely comprised of fixed income securities with a small allocation to short-term investments.The Corporate and Other portfolio is primarily focused on liquidity needs and capital preservation within a total return framework. The portfolio is largely comprised of high-quality liquid fixed income securities and short-term investments with a lower allocation to performance-based and equity investments.We utilize two primary strategies to manage risks and returns and to position our portfolio to take"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Business, strategy and operations",
      "prior_title": "Business, strategy and operations",
      "current_body": "We operate in markets that are highly competitive Markets in which we operate are highly competitive, and we must continually allocate resources to refine and improve products and services to maintain our reputation, enhance brand perception, and remain competitive. Negative publicity or other negative events could harm our reputation and brand perception, adversely impacting customer, employee and other relationships. If we are unsuccessful in generating new business, retaining customers or renewing contracts, or if marketing efforts and investments in brand enhancements are unsuccessful, our ability to maintain or increase premiums written or the ability to sell products could be adversely impacted. Determining competitive position is complicated in the auto and homeowners insurance business as companies use different underwriting standards to accept new customers and quotes and close rates can fluctuate across companies and locations. Pricing of products is driven by multiple factors, including loss expectations, expense structure and dissimilar return targets. Additionally, sophisticated pricing algorithms make it difficult to determine what price potential customers would pay across competitors. Pricing increases could adversely impact customer retention and ability to attract new business. Our ability to adequately and effectively price products is affected by the evolving nature of consumer needs and preferences, market and regulatory dynamics, broader use of telematics-based rate segmentation and potential change in consumer demand. There is also significant competition for producers, such as exclusive and independent agents and their licensed sales professionals. Growth and retention may be materially affected if we are unable to attract and retain effective producers or if those producers are unable to attract and retain their licensed sales professionals or customers. Many voluntary benefits contracts are renewed annually and consumer protection plan contracts are generally multi-year, but renewals occur on a rolling basis. There is a risk that employers and retailers may be able to obtain more favorable terms from competitors than they could by renewing coverage with us. These competitive pressures may adversely affect the renewal of these contracts, as well as our ability to sell products. Changing consumer preferences may adversely impact the demand for our products which may adversely impact the business Growth and retention may be impacted if customer preferences change and we are unable to effectively adapt our business model, technology and processes, including maintaining competitive products 24 www.allstate.com 24 www.allstate.com 24 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures and allowing consumers to interact with us how they choose. Some competitors may offer a broader array of products than we do, or a more favorable customer experience. The business could be impacted by our ability to attract, serve and retain customers through distribution channels that they prefer.Our business may also be adversely impacted by new or changing technologiesTechnological changes, such as autonomous or partially autonomous vehicles or technologies that facilitate ride, car or home sharing could disrupt the demand for products from current customers, create coverage issues, impact the frequency or severity of losses, or reduce the size of the automobile insurance market causing our auto insurance business to decline. Since auto insurance constitutes a significant portion of the overall business, we may be more sensitive than other insurers and more adversely affected by trends that could decrease auto insurance rates or reduce demand for auto insurance over time.Our ability to successfully deploy new technologies may adversely impact our businessTechnological advancements and innovation are occurring at a rapid pace that may continue to accelerate. Nontraditional competitors could enter the insurance market and further accelerate these trends. Our competitive position could be impacted if we are unable to deploy, in a cost effective and competitive and minimally disruptive manner, technology such as artificial intelligence, large language models, machine learning and predictive analytics that collects and analyzes data to inform our decisions, or if our competitors collect and use data which we do not have the ability to access or use. Innovations must be implemented in compliance with applicable insurance regulations and in a responsible and compliant manner. The maturity and effectiveness of currently available generative artificial intelligence technology is uncertain. The use of artificial intelligence may present ethical and reputational risks. Regulatory restrictions on the use of artificial intelligence may impose additional compliance or reporting obligations and may materially adversely affect our operations or ability to write business profitably in one or more jurisdictions. Technological changes may require extensive modifications to our systems and processes and extensive coordination with and reliance on the systems and operations of third parties. If we are unable to adapt to or bring such advancements and innovations to market, the quality of our products, our relationships with customers and agents, competitive position and business prospects may be materially affected. Changes in technology related to collection and application of data regarding customers could expose us to regulatory or legal actions and may have a material adverse effect on our business, reputation, results of operations and financial condition. Changes in technology and customer preferences may impact the ways in which we interact, do business with customers and design products. We may not be able to respond effectively or in a timely manner to these changes, including developing and deploying customer-facing technology to address these changing preferences and maintaining competitive technology, which could have an adverse effect on the results of operations and financial condition.Executing our strategy to advance and innovate technology has and may continue to impact our workforce as we require new and different skills, particularly those in areas such as digital, data and analytics and technology to achieve our strategic goals. Advancements in technology and changes in consumer preferences may also impact our workforce needs in the future.Transformative Growth strategy may not be effectiveThe Transformative Growth strategy is to accelerate growth by improving customer value, expanding customer access, increasing sophistication and investment in customer acquisition, deploying a new technology ecosystem and driving organizational transformation. As part of the strategy, we have developed and continue to develop new insurance and non-insurance products and services to provide affordable, simple, and connected protection through multiple distribution channels. We have also expanded our product and service offerings through acquisitions and may continue to do so. If the strategy is not implemented effectively growth and profitability objectives could be adversely impacted. Lost business opportunities may result due to slower than anticipated speed to market. New products and services may not be as profitable as existing products, may not perform as well as we expect and may change risk exposures. External forces including competitor actions or regulatory changes may also have an adverse effect on the value generated from the transformation.Our catastrophe management strategy may adversely affect premium growthCatastrophe risk management actions have led us to reduce the size of the homeowners business in certain states, including customers with auto and other personal lines products, and may negatively impact future sales. Adjustments to the business structure, size and underwriting practices in markets with significant severe weather and catastrophe risk exposure could adversely impact premium growth rates and retention.The ability of our subsidiaries to pay dividends may affect our liquidity and ability to meet our obligationsThe Allstate Corporation is a holding company with no significant operations. Its principal assets are the stock of its subsidiaries and its directly held cash and investment portfolios. Its liabilities include debt and pension and other postretirement benefit obligations related to employees. State insurance regulatory authorities limit the payment of dividends by insurance subsidiaries, as described in Note 18 of the consolidated financial statements. The limitations are generally based on statutory income and surplus. In addition, competitive pressures generally require the and allowing consumers to interact with us how they choose. Some competitors may offer a broader array of products than we do, or a more favorable customer experience. The business could be impacted by our ability to attract, serve and retain customers through distribution channels that they prefer.Our business may also be adversely impacted by new or changing technologiesTechnological changes, such as autonomous or partially autonomous vehicles or technologies that facilitate ride, car or home sharing could disrupt the demand for products from current customers, create coverage issues, impact the frequency or severity of losses, or reduce the size of the automobile insurance market causing our auto insurance business to decline. Since auto insurance constitutes a significant portion of the overall business, we may be more sensitive than other insurers and more adversely affected by trends that could decrease auto insurance rates or reduce demand for auto insurance over time.Our ability to successfully deploy new technologies may adversely impact our businessTechnological advancements and innovation are occurring at a rapid pace that may continue to accelerate. Nontraditional competitors could enter the insurance market and further accelerate these trends. Our competitive position could be impacted if we are unable to deploy, in a cost effective and competitive and minimally disruptive manner, technology such as artificial intelligence, large language models, machine learning and predictive analytics that collects and analyzes data to inform our decisions, or if our competitors collect and use data which we do not have the ability to access or use. Innovations must be implemented in compliance with applicable insurance regulations and in a responsible and compliant manner. The maturity and effectiveness of currently available generative artificial intelligence technology is uncertain. The use of artificial intelligence may present ethical and reputational risks. Regulatory restrictions on the use of artificial intelligence may impose additional compliance or reporting obligations and may materially adversely affect our operations or ability to write business profitably in one or more jurisdictions. Technological changes may require extensive modifications to our systems and processes and extensive coordination with and reliance on the systems and operations of third parties. If we are unable to adapt to or bring such advancements and innovations to market, the quality of our products, our relationships with customers and agents, competitive position and business prospects may be materially affected. Changes in technology related to collection and application of data regarding customers could expose us to regulatory or legal actions and may have a material adverse effect on our business, reputation, results of operations and financial condition. Changes in technology and customer preferences may impact the ways in which we interact, do business with customers and design products. We may not be and allowing consumers to interact with us how they choose. Some competitors may offer a broader array of products than we do, or a more favorable customer experience. The business could be impacted by our ability to attract, serve and retain customers through distribution channels that they prefer. Our business may also be adversely impacted by new or changing technologies Technological changes, such as autonomous or partially autonomous vehicles or technologies that facilitate ride, car or home sharing could disrupt the demand for products from current customers, create coverage issues, impact the frequency or severity of losses, or reduce the size of the automobile insurance market causing our auto insurance business to decline. Since auto insurance constitutes a significant portion of the overall business, we may be more sensitive than other insurers and more adversely affected by trends that could decrease auto insurance rates or reduce demand for auto insurance over time. Our ability to successfully deploy new technologies may adversely impact our business Technological advancements and innovation are occurring at a rapid pace that may continue to accelerate. Nontraditional competitors could enter the insurance market and further accelerate these trends. Our competitive position could be impacted if we are unable to deploy, in a cost effective and competitive and minimally disruptive manner, technology such as artificial intelligence, large language models, machine learning and predictive analytics that collects and analyzes data to inform our decisions, or if our competitors collect and use data which we do not have the ability to access or use. Innovations must be implemented in compliance with applicable insurance regulations and in a responsible and compliant manner. The maturity and effectiveness of currently available generative artificial intelligence technology is uncertain. The use of artificial intelligence may present ethical and reputational risks. Regulatory restrictions on the use of artificial intelligence may impose additional compliance or reporting obligations and may materially adversely affect our operations or ability to write business profitably in one or more jurisdictions. Technological changes may require extensive modifications to our systems and processes and extensive coordination with and reliance on the systems and operations of third parties. If we are unable to adapt to or bring such advancements and innovations to market, the quality of our products, our relationships with customers and agents, competitive position and business prospects may be materially affected. Changes in technology related to collection and application of data regarding customers could expose us to regulatory or legal actions and may have a material adverse effect on our business, reputation, results of operations and financial condition. Changes in technology and customer preferences may impact the ways in which we interact, do business with customers and design products. We may not be able to respond effectively or in a timely manner to these changes, including developing and deploying customer-facing technology to address these changing preferences and maintaining competitive technology, which could have an adverse effect on the results of operations and financial condition.Executing our strategy to advance and innovate technology has and may continue to impact our workforce as we require new and different skills, particularly those in areas such as digital, data and analytics and technology to achieve our strategic goals. Advancements in technology and changes in consumer preferences may also impact our workforce needs in the future.Transformative Growth strategy may not be effectiveThe Transformative Growth strategy is to accelerate growth by improving customer value, expanding customer access, increasing sophistication and investment in customer acquisition, deploying a new technology ecosystem and driving organizational transformation. As part of the strategy, we have developed and continue to develop new insurance and non-insurance products and services to provide affordable, simple, and connected protection through multiple distribution channels. We have also expanded our product and service offerings through acquisitions and may continue to do so. If the strategy is not implemented effectively growth and profitability objectives could be adversely impacted. Lost business opportunities may result due to slower than anticipated speed to market. New products and services may not be as profitable as existing products, may not perform as well as we expect and may change risk exposures. External forces including competitor actions or regulatory changes may also have an adverse effect on the value generated from the transformation.Our catastrophe management strategy may adversely affect premium growthCatastrophe risk management actions have led us to reduce the size of the homeowners business in certain states, including customers with auto and other personal lines products, and may negatively impact future sales. Adjustments to the business structure, size and underwriting practices in markets with significant severe weather and catastrophe risk exposure could adversely impact premium growth rates and retention.The ability of our subsidiaries to pay dividends may affect our liquidity and ability to meet our obligationsThe Allstate Corporation is a holding company with no significant operations. Its principal assets are the stock of its subsidiaries and its directly held cash and investment portfolios. Its liabilities include debt and pension and other postretirement benefit obligations related to employees. State insurance regulatory authorities limit the payment of dividends by insurance subsidiaries, as described in Note 18 of the consolidated financial statements. The limitations are generally based on statutory income and surplus. In addition, competitive pressures generally require the able to respond effectively or in a timely manner to these changes, including developing and deploying customer-facing technology to address these changing preferences and maintaining competitive technology, which could have an adverse effect on the results of operations and financial condition. Executing our strategy to advance and innovate technology has and may continue to impact our workforce as we require new and different skills, particularly those in areas such as digital, data and analytics and technology to achieve our strategic goals. Advancements in technology and changes in consumer preferences may also impact our workforce needs in the future. Transformative Growth strategy may not be effective The Transformative Growth strategy is to accelerate growth by improving customer value, expanding customer access, increasing sophistication and investment in customer acquisition, deploying a new technology ecosystem and driving organizational transformation. As part of the strategy, we have developed and continue to develop new insurance and non-insurance products and services to provide affordable, simple, and connected protection through multiple distribution channels. We have also expanded our product and service offerings through acquisitions and may continue to do so. If the strategy is not implemented effectively growth and profitability objectives could be adversely impacted. Lost business opportunities may result due to slower than anticipated speed to market. New products and services may not be as profitable as existing products, may not perform as well as we expect and may change risk exposures. External forces including competitor actions or regulatory changes may also have an adverse effect on the value generated from the transformation. Our catastrophe management strategy may adversely affect premium growth Catastrophe risk management actions have led us to reduce the size of the homeowners business in certain states, including customers with auto and other personal lines products, and may negatively impact future sales. Adjustments to the business structure, size and underwriting practices in markets with significant severe weather and catastrophe risk exposure could adversely impact premium growth rates and retention. The ability of our subsidiaries to pay dividends may affect our liquidity and ability to meet our obligations The Allstate Corporation is a holding company with no significant operations. Its principal assets are the stock of its subsidiaries and its directly held cash and investment portfolios. Its liabilities include debt and pension and other postretirement benefit obligations related to employees. State insurance regulatory authorities limit the payment of dividends by insurance subsidiaries, as described in Note 18 of the consolidated financial statements. The limitations are generally based on statutory income and surplus. In addition, competitive pressures generally require the The Allstate Corporation 25 The Allstate Corporation 25 The Allstate Corporation 25 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures subsidiaries to maintain insurance financial strength ratings. These restrictions and other regulatory requirements may affect the ability of subsidiaries to make dividend payments. Limits on the ability of the subsidiaries to pay dividends could adversely affect holding company liquidity, including the ability to pay dividends to shareholders, service debt or complete share repurchase programs as planned.Changes in regulatory and rating agency capital metrics could decrease deployable capital and potentially reduce future dividends paid by our insurance companies. For a discussion of capital requirements, see Regulation section, Limitations on Dividends by Insurance Subsidiaries.Our ability to pay dividends or repurchase stock is subject to limitations under terms of certain of our securitiesThe terms of the outstanding subordinated debentures prohibit us from declaring or paying any dividends or distributions on our common or preferred stock or redeeming, purchasing, acquiring or making liquidation payments on our common stock or preferred stock if we have elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions.If the full preferred stock dividends for all preceding dividend periods have not been declared and paid, we generally may not repurchase or pay dividends on common stock during any dividend period while our preferred stock is outstanding. For additional details, see Note 14 of the consolidated financial statements.Insufficient reinsurance capacity or reinsurance at unacceptable prices may limit our ability to profitably write businessMarket conditions impact the availability and cost of the reinsurance we purchase. Reinsurance may not remain continuously available to us to the same extent and on the same terms and rates as were historically available or is currently available. The ability to economically justify reinsurance to reduce catastrophe risk in designated areas may depend on our ability to adjust premium rates to fully or partially recover cost. If we cannot maintain an acceptable level of reinsurance or purchase new reinsurance protection in amounts we consider sufficient at acceptable prices, we would have to either accept an increase in our catastrophe exposure, reduce insurance exposure or seek other alternatives.Unfavorable conditions in the insurance-linked securities (“ILS”) market may increase the cost to use ILS or issue new securities in amounts we consider sufficient at acceptable prices.Reinsurance subjects us to counterparty risk and may not be adequate to protect us against losses arising from ceded insuranceCollecting from reinsurers is subject to uncertainty arising from factors that include:•Whether reinsurers, their affiliates or certain indemnitors have the financial capacity and willingness to make payments under the terms of a reinsurance treaty or contract•Whether insured losses meet the qualifying conditions of the reinsurance contract•Asbestos, environmental and other run-off lines of business reinsurance counterparties may have increased credit risk and may not provide the level of coverage or collateral that we expectOur inability to recover from a reinsurer could have a material effect on the results of operations and financial condition. Additionally, reinsurance protects up to a certain loss for each event and events that exceed coverages could subject us to higher than anticipated losses.Acquisitions or divestitures of businesses may not produce anticipated benefits, resulting in operating difficulties, unforeseen liabilities or asset impairmentsThe ability to achieve certain anticipated financial benefits from the acquisition of businesses depends in part on our ability to successfully grow and integrate the businesses consistent with anticipated acquisition economics. Financial results could be adversely affected by unanticipated performance or compliance issues, unforeseen liabilities, transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems and failure of cybersecurity controls, amortization of expenses related to intangibles, charges for impairment of long-term assets or goodwill and indemnifications.Acquired businesses may not perform as projected, cost savings anticipated from the acquisition may not materialize, and costs associated with the integration may be greater than anticipated. As a result, if we do not manage these integrations effectively, the quality of our products as well as relationships with customers and partners may suffer and could result in the company not achieving returns on its investment at the level projected at acquisition.We also may divest businesses from time to time. These transactions may require us to provide technology and administrative services or may result in continued financial involvement in the divested businesses, such as through transition services agreements, reinsurance, guarantees or other financial arrangements, following the transaction. If the acquiring companies do not perform under the arrangements, financial results could be negatively impacted. subsidiaries to maintain insurance financial strength ratings. These restrictions and other regulatory requirements may affect the ability of subsidiaries to make dividend payments. Limits on the ability of the subsidiaries to pay dividends could adversely affect holding company liquidity, including the ability to pay dividends to shareholders, service debt or complete share repurchase programs as planned.Changes in regulatory and rating agency capital metrics could decrease deployable capital and potentially reduce future dividends paid by our insurance companies. For a discussion of capital requirements, see Regulation section, Limitations on Dividends by Insurance Subsidiaries.Our ability to pay dividends or repurchase stock is subject to limitations under terms of certain of our securitiesThe terms of the outstanding subordinated debentures prohibit us from declaring or paying any dividends or distributions on our common or preferred stock or redeeming, purchasing, acquiring or making liquidation payments on our common stock or preferred stock if we have elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions.If the full preferred stock dividends for all preceding dividend periods have not been declared and paid, we generally may not repurchase or pay dividends on common stock during any dividend period while our preferred stock is outstanding. For additional details, see Note 14 of the consolidated financial statements.Insufficient reinsurance capacity or reinsurance at unacceptable prices may limit our ability to profitably write businessMarket conditions impact the availability and cost of the reinsurance we purchase. Reinsurance may not remain continuously available to us to the same extent and on the same terms and rates as were historically available or is currently available. The ability to economically justify reinsurance to reduce catastrophe risk in designated areas may depend on our ability to adjust premium rates to fully or partially recover cost. If we cannot maintain an acceptable level of reinsurance or purchase new reinsurance protection in amounts we consider sufficient at acceptable prices, we would have to either accept an increase in our catastrophe exposure, reduce insurance exposure or seek other alternatives.Unfavorable conditions in the insurance-linked securities (“ILS”) market may increase the cost to use ILS or issue new securities in amounts we consider sufficient at acceptable prices. subsidiaries to maintain insurance financial strength ratings. These restrictions and other regulatory requirements may affect the ability of subsidiaries to make dividend payments. Limits on the ability of the subsidiaries to pay dividends could adversely affect holding company liquidity, including the ability to pay dividends to shareholders, service debt or complete share repurchase programs as planned. Changes in regulatory and rating agency capital metrics could decrease deployable capital and potentially reduce future dividends paid by our insurance companies. For a discussion of capital requirements, see Regulation section, Limitations on Dividends by Insurance Subsidiaries. Our ability to pay dividends or repurchase stock is subject to limitations under terms of certain of our securities The terms of the outstanding subordinated debentures prohibit us from declaring or paying any dividends or distributions on our common or preferred stock or redeeming, purchasing, acquiring or making liquidation payments on our common stock or preferred stock if we have elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions. If the full preferred stock dividends for all preceding dividend periods have not been declared and paid, we generally may not repurchase or pay dividends on common stock during any dividend period while our preferred stock is outstanding. For additional details, see Note 14 of the consolidated financial statements. Insufficient reinsurance capacity or reinsurance at unacceptable prices may limit our ability to profitably write business Market conditions impact the availability and cost of the reinsurance we purchase. Reinsurance may not remain continuously available to us to the same extent and on the same terms and rates as were historically available or is currently available. The ability to economically justify reinsurance to reduce catastrophe risk in designated areas may depend on our ability to adjust premium rates to fully or partially recover cost. If we cannot maintain an acceptable level of reinsurance or purchase new reinsurance protection in amounts we consider sufficient at acceptable prices, we would have to either accept an increase in our catastrophe exposure, reduce insurance exposure or seek other alternatives. Unfavorable conditions in the insurance-linked securities (“ILS”) market may increase the cost to use ILS or issue new securities in amounts we consider sufficient at acceptable prices. Reinsurance subjects us to counterparty risk and may not be adequate to protect us against losses arising from ceded insuranceCollecting from reinsurers is subject to uncertainty arising from factors that include:•Whether reinsurers, their affiliates or certain indemnitors have the financial capacity and willingness to make payments under the terms of a reinsurance treaty or contract•Whether insured losses meet the qualifying conditions of the reinsurance contract•Asbestos, environmental and other run-off lines of business reinsurance counterparties may have increased credit risk and may not provide the level of coverage or collateral that we expectOur inability to recover from a reinsurer could have a material effect on the results of operations and financial condition. Additionally, reinsurance protects up to a certain loss for each event and events that exceed coverages could subject us to higher than anticipated losses.Acquisitions or divestitures of businesses may not produce anticipated benefits, resulting in operating difficulties, unforeseen liabilities or asset impairmentsThe ability to achieve certain anticipated financial benefits from the acquisition of businesses depends in part on our ability to successfully grow and integrate the businesses consistent with anticipated acquisition economics. Financial results could be adversely affected by unanticipated performance or compliance issues, unforeseen liabilities, transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems and failure of cybersecurity controls, amortization of expenses related to intangibles, charges for impairment of long-term assets or goodwill and indemnifications.Acquired businesses may not perform as projected, cost savings anticipated from the acquisition may not materialize, and costs associated with the integration may be greater than anticipated. As a result, if we do not manage these integrations effectively, the quality of our products as well as relationships with customers and partners may suffer and could result in the company not achieving returns on its investment at the level projected at acquisition.We also may divest businesses from time to time. These transactions may require us to provide technology and administrative services or may result in continued financial involvement in the divested businesses, such as through transition services agreements, reinsurance, guarantees or other financial arrangements, following the transaction. If the acquiring companies do not perform under the arrangements, financial results could be negatively impacted. Reinsurance subjects us to counterparty risk and may not be adequate to protect us against losses arising from ceded insurance Collecting from reinsurers is subject to uncertainty arising from factors that include: •Whether reinsurers, their affiliates or certain indemnitors have the financial capacity and willingness to make payments under the terms of a reinsurance treaty or contract •Whether insured losses meet the qualifying conditions of the reinsurance contract •Asbestos, environmental and other run-off lines of business reinsurance counterparties may have increased credit risk and may not provide the level of coverage or collateral that we expect Our inability to recover from a reinsurer could have a material effect on the results of operations and financial condition. Additionally, reinsurance protects up to a certain loss for each event and events that exceed coverages could subject us to higher than anticipated losses. Acquisitions or divestitures of businesses may not produce anticipated benefits, resulting in operating difficulties, unforeseen liabilities or asset impairments The ability to achieve certain anticipated financial benefits from the acquisition of businesses depends in part on our ability to successfully grow and integrate the businesses consistent with anticipated acquisition economics. Financial results could be adversely affected by unanticipated performance or compliance issues, unforeseen liabilities, transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems and failure of cybersecurity controls, amortization of expenses related to intangibles, charges for impairment of long-term assets or goodwill and indemnifications. Acquired businesses may not perform as projected, cost savings anticipated from the acquisition may not materialize, and costs associated with the integration may be greater than anticipated. As a result, if we do not manage these integrations effectively, the quality of our products as well as relationships with customers and partners may suffer and could result in the company not achieving returns on its investment at the level projected at acquisition. We also may divest businesses from time to time. These transactions may require us to provide technology and administrative services or may result in continued financial involvement in the divested businesses, such as through transition services agreements, reinsurance, guarantees or other financial arrangements, following the transaction. If the acquiring companies do not perform under the arrangements, financial results could be negatively impacted. 26 www.allstate.com 26 www.allstate.com 26 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures We may be subject to the risks and costs associated with intellectual property infringement, misappropriation and third-party claimsWe rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property. Third parties may infringe or misappropriate our intellectual property. We may have to litigate to enforce and protect intellectual property and to determine its scope, validity or enforceability, which could divert significant resources and prove unsuccessful. An inability to protect intellectual property or an inability to successfully defend against a claim of intellectual property infringement could have a material effect on our business.We may be subject to claims by third parties for patent, trademark or copyright infringement or breach of usage rights. Any such claims and any resulting litigation could result in significant expense and liability. If third-party providers or we are found to have infringed a third-party intellectual property right, either of us could be enjoined from providing certain products or services or from utilizing and benefiting from certain methods, processes, copyrights, trademarks, trade secrets or licenses. Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement costly workarounds. Any of these scenarios could have a material effect on the business and results of operations.Loss of key vendor relationships, disruptions to the provision of products or services by a vendor, a vendor’s failure to restore critical services after a cybersecurity event, or failure of a vendor to provide and protect reliable data, and proprietary information, or personal information of our customers, claimants or employees could adversely affect our operationsWe rely on services and products provided by many vendors in the U.S. and abroad. These include vendors of computer hardware, software, cloud technology and software as a service, as well as vendors or outsourcing of services such as:•Claim and administrative services•Call center services for customer support•Human resource benefits management •Information technology support •Investment management services•Financial and business support servicesWe continue to identify ways to improve operating efficiency and reduce cost, which may result in additional outsourcing arrangements or increased reliance on third-party technologies in the future. We may not be successful transitioning work to a vendor or a key vendor could become unable to continue to provide products or services, fail to meet service level standards, fail to protect our confidential, proprietary, and other information or deploy new technologies, such as artificial intelligence, in a manner that has an adverse impact on our operations. Additionally, if plans to restore and recover critical systems, data and operations along with vendor contingencies do not sufficiently address a vendor-related business interruption, we may suffer operational impairments and financial losses.Our ability to attract, develop, and retain talent to maintain appropriate staffing levels and a successful work culture is critical to our successCompetition for qualified employees with highly specialized knowledge in areas such as underwriting, data and analytics, technology and cybersecurity, is intense and we have experienced increased competition in hiring and retaining employees. The increased prevalence of remote-working arrangements may contribute to higher turnover or lower employee engagement.Factors that affect our ability to attract, develop and retain employees and maintain a successful work culture include:•Compensation and benefits•Training and employee engagement programs•Reputation as a successful business with a culture of fair hiring, and of training and promoting qualified employees•Recognition of and response to changing trends and other circumstances that affect employees•Physical workspaces and return to office requirementsThe unexpected loss of key personnel could have a material adverse impact on our business because of the loss of their skills, knowledge of our products and offerings and years of industry experience and, in some cases, the difficulty of promptly finding qualified replacement personnel. Macro, regulatory and risk environmentConditions in the global economy and capital markets could adversely affect the business and results of operationsGlobal economic and capital market conditions could adversely impact demand for our products, returns on our investment portfolio and results of operations. The conditions that would have the largest impact on our business include: •Low or negative economic growth•Interest rate levels •Rising inflation increasing claims and claims expense•Protectionist trade policy actions, such as tariffs and quotas•Substantial increases in delinquencies or defaults on debt•Significant downturns in the market value or liquidity of our investment portfolio•Prolonged downturn in equity valuations We may be subject to the risks and costs associated with intellectual property infringement, misappropriation and third-party claimsWe rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property. Third parties may infringe or misappropriate our intellectual property. We may have to litigate to enforce and protect intellectual property and to determine its scope, validity or enforceability, which could divert significant resources and prove unsuccessful. An inability to protect intellectual property or an inability to successfully defend against a claim of intellectual property infringement could have a material effect on our business.We may be subject to claims by third parties for patent, trademark or copyright infringement or breach of usage rights. Any such claims and any resulting litigation could result in significant expense and liability. If third-party providers or we are found to have infringed a third-party intellectual property right, either of us could be enjoined from providing certain products or services or from utilizing and benefiting from certain methods, processes, copyrights, trademarks, trade secrets or licenses. Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement costly workarounds. Any of these scenarios could have a material effect on the business and results of operations.Loss of key vendor relationships, disruptions to the provision of products or services by a vendor, a vendor’s failure to restore critical services after a cybersecurity event, or failure of a vendor to provide and protect reliable data, and proprietary information, or personal information of our customers, claimants or employees could adversely affect our operationsWe rely on services and products provided by many vendors in the U.S. and abroad. These include vendors of computer hardware, software, cloud technology and software as a service, as well as vendors or outsourcing of services such as:•Claim and administrative services•Call center services for customer support•Human resource benefits management •Information technology support •Investment management services•Financial and business support servicesWe continue to identify ways to improve operating efficiency and reduce cost, which may result in additional outsourcing arrangements or increased reliance on third-party technologies in the future. We may not be successful transitioning work to a vendor or a key vendor could become unable to continue to provide products or services, fail to meet service level standards, fail to protect our confidential, proprietary, and other information or deploy new technologies, such as artificial intelligence, in a manner that has an adverse impact on our operations. Additionally, if plans to restore and recover critical systems, data and We may be subject to the risks and costs associated with intellectual property infringement, misappropriation and third-party claims We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property. Third parties may infringe or misappropriate our intellectual property. We may have to litigate to enforce and protect intellectual property and to determine its scope, validity or enforceability, which could divert significant resources and prove unsuccessful. An inability to protect intellectual property or an inability to successfully defend against a claim of intellectual property infringement could have a material effect on our business. We may be subject to claims by third parties for patent, trademark or copyright infringement or breach of usage rights. Any such claims and any resulting litigation could result in significant expense and liability. If third-party providers or we are found to have infringed a third-party intellectual property right, either of us could be enjoined from providing certain products or services or from utilizing and benefiting from certain methods, processes, copyrights, trademarks, trade secrets or licenses. Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement costly workarounds. Any of these scenarios could have a material effect on the business and results of operations. Loss of key vendor relationships, disruptions to the provision of products or services by a vendor, a vendor’s failure to restore critical services after a cybersecurity event, or failure of a vendor to provide and protect reliable data, and proprietary information, or personal information of our customers, claimants or employees could adversely affect our operations We rely on services and products provided by many vendors in the U.S. and abroad. These include vendors of computer hardware, software, cloud technology and software as a service, as well as vendors or outsourcing of services such as: •Claim and administrative services •Call center services for customer support •Human resource benefits management •Information technology support •Investment management services •Financial and business support services We continue to identify ways to improve operating efficiency and reduce cost, which may result in additional outsourcing arrangements or increased reliance on third-party technologies in the future. We may not be successful transitioning work to a vendor or a key vendor could become unable to continue to provide products or services, fail to meet service level standards, fail to protect our confidential, proprietary, and other information or deploy new technologies, such as artificial intelligence, in a manner that has an adverse impact on our operations. Additionally, if plans to restore and recover critical systems, data and operations along with vendor contingencies do not sufficiently address a vendor-related business interruption, we may suffer operational impairments and financial losses.Our ability to attract, develop, and retain talent to maintain appropriate staffing levels and a successful work culture is critical to our successCompetition for qualified employees with highly specialized knowledge in areas such as underwriting, data and analytics, technology and cybersecurity, is intense and we have experienced increased competition in hiring and retaining employees. The increased prevalence of remote-working arrangements may contribute to higher turnover or lower employee engagement.Factors that affect our ability to attract, develop and retain employees and maintain a successful work culture include:•Compensation and benefits•Training and employee engagement programs•Reputation as a successful business with a culture of fair hiring, and of training and promoting qualified employees•Recognition of and response to changing trends and other circumstances that affect employees•Physical workspaces and return to office requirementsThe unexpected loss of key personnel could have a material adverse impact on our business because of the loss of their skills, knowledge of our products and offerings and years of industry experience and, in some cases, the difficulty of promptly finding qualified replacement personnel. Macro, regulatory and risk environmentConditions in the global economy and capital markets could adversely affect the business and results of operationsGlobal economic and capital market conditions could adversely impact demand for our products, returns on our investment portfolio and results of operations. The conditions that would have the largest impact on our business include: •Low or negative economic growth•Interest rate levels •Rising inflation increasing claims and claims expense•Protectionist trade policy actions, such as tariffs and quotas•Substantial increases in delinquencies or defaults on debt•Significant downturns in the market value or liquidity of our investment portfolio•Prolonged downturn in equity valuations operations along with vendor contingencies do not sufficiently address a vendor-related business interruption, we may suffer operational impairments and financial losses. Our ability to attract, develop, and retain talent to maintain appropriate staffing levels and a successful work culture is critical to our success Competition for qualified employees with highly specialized knowledge in areas such as underwriting, data and analytics, technology and cybersecurity, is intense and we have experienced increased competition in hiring and retaining employees. The increased prevalence of remote-working arrangements may contribute to higher turnover or lower employee engagement. Factors that affect our ability to attract, develop and retain employees and maintain a successful work culture include: •Compensation and benefits •Training and employee engagement programs •Reputation as a successful business with a culture of fair hiring, and of training and promoting qualified employees •Recognition of and response to changing trends and other circumstances that affect employees •Physical workspaces and return to office requirements The unexpected loss of key personnel could have a material adverse impact on our business because of the loss of their skills, knowledge of our products and offerings and years of industry experience and, in some cases, the difficulty of promptly finding qualified replacement personnel."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Catastrophe management",
      "prior_title": "Catastrophe management",
      "current_body": "Historical catastrophe experience For the last ten years, the average annual impact of catastrophes on our loss ratio was 8.6 points, but it has varied from 5.7 points to 11.6 points. The impact of catastrophes on the homeowners loss ratio in 2024 was 27.8 points compared to the average annual impact for the last ten years of 27.6 points. Over time, we have limited our aggregate insurance exposure to catastrophe losses in certain regions of the country that are subject to high levels of natural catastrophes by our participation in various state facilities. For further discussion of these facilities, see Note 16 of the consolidated financial statements. However, the impact of these actions may be diminished by the growth in insured values, the effect of state insurance laws and regulations and we may not be able to maintain our current level of reinsurance or purchase new reinsurance protection in amounts we consider sufficient at acceptable prices. In addition, in various states we are required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers including the California FAIR Plan Association. Because of our participation in these and other state facilities such as wind pools, we may be Historical catastrophe experience For the last ten years, the average annual impact of catastrophes on our loss ratio was 8.6 points, but it has varied from 5.7 points to 11.6 points. The impact of catastrophes on the homeowners loss ratio in 2024 was 27.8 points compared to the average annual impact for the last ten years of 27.6 points. Over time, we have limited our aggregate insurance exposure to catastrophe losses in certain regions of the country that are subject to high levels of natural catastrophes by our participation in various state facilities. For further discussion of these facilities, see Note 16 of the consolidated financial statements. However, the impact of these actions may Historical catastrophe experience For the last ten years, the average annual impact of catastrophes on our loss ratio was 8.6 points, but it has varied from 5.7 points to 11.6 points. The impact of catastrophes on the homeowners loss ratio in 2024 was 27.8 points compared to the average annual impact for the last ten years of 27.6 points. Over time, we have limited our aggregate insurance exposure to catastrophe losses in certain regions of the country that are subject to high levels of natural catastrophes by our participation in various state facilities. For further discussion of these facilities, see Note 16 of the consolidated financial statements. However, the impact of these actions may be diminished by the growth in insured values, the effect of state insurance laws and regulations and we may not be able to maintain our current level of reinsurance or purchase new reinsurance protection in amounts we consider sufficient at acceptable prices. In addition, in various states we are required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers including the California FAIR Plan Association. Because of our participation in these and other state facilities such as wind pools, we may be be diminished by the growth in insured values, the effect of state insurance laws and regulations and we may not be able to maintain our current level of reinsurance or purchase new reinsurance protection in amounts we consider sufficient at acceptable prices. In addition, in various states we are required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers including the California FAIR Plan Association. Because of our participation in these and other state facilities such as wind pools, we may be The Allstate Corporation 45 The Allstate Corporation 45 The Allstate Corporation 45 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection exposed to losses that surpass the capitalization of these facilities and to assessments from these facilities.We have continued to take actions to maintain an appropriate level of exposure to catastrophic events while continuing to meet the needs of our customers, including the following:•Continuing to limit or not offer new homeowners, manufactured home and landlord package policy business in certain coastal geographies. Additionally, we:–Reduced our exposure to high-risk areas, including California and Florida. We have decreased our overall homeowner exposure in California by more than 50% since 2007. Additionally, from 2016 to 2022 we wrote a limited number of homeowners policies in select areas of California. In 2022 we stopped writing new homeowners and condominium business in the states of California and Florida. As a result, since December 31, 2023, PIF has declined by approximately 5.0% and 21% in California and Florida, respectively. –Write homeowners coverage, excluding in Florida, through our excess and surplus lines carrier, North Light Specialty Insurance Company (“North Light”), which can include earthquake coverage (other than fire following earthquakes) that is currently ceded via quota share reinsurance. •Increased capacity in our brokerage platform for customers not offered an Allstate policy. As of December 31, 2024, Ivantage had $2.57 billion non-proprietary premiums under management.•Ceded wind exposure related to insured property located in wind pool eligible areas in certain states.•Generally require higher deductibles for tropical cyclone than all peril deductibles which are in place for a large portion of coastal insured properties.•Include coverage for flood-related losses for auto comprehensive damage coverage since we have additional catastrophe exposure, beyond the property lines, for auto customers who have purchased comprehensive damage coverage. •Provide options of coverage for roof damage, including graduated coverage and pricing based on roof type and age. In 2024, premiums written totaled $8.75 billion or 60.7% of homeowners premiums written.Hurricanes We consider the greatest areas of potential catastrophe losses due to hurricanes to be major metropolitan centers along the eastern and gulf coasts of the United States. The average premium on a property policy near these coasts is generally greater than in other areas. However, average premiums are often not considered commensurate with the inherent risk of loss. In addition, as explained in Note 16 of the consolidated financial statements, in various states Allstate is subject to assessments from assigned risk plans, reinsurance facilities and joint underwriting associations providing insurance for wind related property losses.We have addressed our risk of hurricane loss by, among other actions, purchasing reinsurance for specific states and on a countrywide basis for our personal lines property insurance in areas most exposed to hurricanes, limiting personal homeowners, landlord package policy and manufactured home new business writings in coastal areas in southern and eastern states, implementing tropical cyclone deductibles where appropriate, and not offering continuing coverage on certain policies in coastal counties in certain states. We continue to seek appropriate returns for the risks we write. This may require further actions, similar to those already taken, in geographies where we are not getting appropriate returns. However, we may maintain or opportunistically increase our presence in areas where adequate risk adjusted returns can be achieved.Earthquakes We do not offer earthquake coverage in most states. We retain approximately 23,000 PIF with earthquake coverage, with the largest number of policies located in Kentucky, due to regulatory and other reasons. We purchase reinsurance in Kentucky and enter into arrangements in many states to make earthquake coverage available through our brokerage platform. We continue to have exposure to earthquake risk on certain policies that do not specifically exclude coverage for earthquake losses, including our auto policies, and to homeowners insurance fire losses following earthquakes. Allstate homeowner policyholders in California are offered coverage for damage caused by an earthquake through the California Earthquake Authority (“CEA”), a privately financed, publicly managed state agency created to provide insurance coverage for earthquake damage. Allstate is subject to assessments from the CEA under certain circumstances as explained in Note 16 of the consolidated financial statements. While North Light writes property policies in California, which can include earthquake coverage, this coverage is 100% ceded via quota share reinsurance. Fires following earthquakes Under a standard homeowners policy we cover fire losses, including those caused by an earthquake. Actions taken related to our risk of loss from fires following earthquakes include restrictive underwriting guidelines in California for new business writings, purchasing reinsurance for Kentucky personal lines property risks, and purchasing nationwide occurrence reinsurance, excluding Florida.Wildfires Actions taken related to managing our risk of loss from wildfires include purchasing nationwide occurrence reinsurance, new and renewal inspection programs to identify and remediate wildfire risk as well as leveraging contemporary underwriting tools in select areas. While these programs are designed to mitigate risk, the exposure to wildfires still exists. We continue to manage our exposure and seek appropriate returns for the risks we write. In addition, as explained in Note 16 of the consolidated financial statements, Allstate is subject to assessments from exposed to losses that surpass the capitalization of these facilities and to assessments from these facilities.We have continued to take actions to maintain an appropriate level of exposure to catastrophic events while continuing to meet the needs of our customers, including the following:•Continuing to limit or not offer new homeowners, manufactured home and landlord package policy business in certain coastal geographies. Additionally, we:–Reduced our exposure to high-risk areas, including California and Florida. We have decreased our overall homeowner exposure in California by more than 50% since 2007. Additionally, from 2016 to 2022 we wrote a limited number of homeowners policies in select areas of California. In 2022 we stopped writing new homeowners and condominium business in the states of California and Florida. As a result, since December 31, 2023, PIF has declined by approximately 5.0% and 21% in California and Florida, respectively. –Write homeowners coverage, excluding in Florida, through our excess and surplus lines carrier, North Light Specialty Insurance Company (“North Light”), which can include earthquake coverage (other than fire following earthquakes) that is currently ceded via quota share reinsurance. •Increased capacity in our brokerage platform for customers not offered an Allstate policy. As of December 31, 2024, Ivantage had $2.57 billion non-proprietary premiums under management.•Ceded wind exposure related to insured property located in wind pool eligible areas in certain states.•Generally require higher deductibles for tropical cyclone than all peril deductibles which are in place for a large portion of coastal insured properties.•Include coverage for flood-related losses for auto comprehensive damage coverage since we have additional catastrophe exposure, beyond the property lines, for auto customers who have purchased comprehensive damage coverage. •Provide options of coverage for roof damage, including graduated coverage and pricing based on roof type and age. In 2024, premiums written totaled $8.75 billion or 60.7% of homeowners premiums written.Hurricanes We consider the greatest areas of potential catastrophe losses due to hurricanes to be major metropolitan centers along the eastern and gulf coasts of the United States. The average premium on a property policy near these coasts is generally greater than in other areas. However, average premiums are often not considered commensurate with the inherent risk of loss. In addition, as explained in Note 16 of the consolidated financial statements, in various states Allstate is subject to assessments from assigned risk plans, reinsurance facilities and joint underwriting exposed to losses that surpass the capitalization of these facilities and to assessments from these facilities. We have continued to take actions to maintain an appropriate level of exposure to catastrophic events while continuing to meet the needs of our customers, including the following: •Continuing to limit or not offer new homeowners, manufactured home and landlord package policy business in certain coastal geographies. Additionally, we: –Reduced our exposure to high-risk areas, including California and Florida. We have decreased our overall homeowner exposure in California by more than 50% since 2007. Additionally, from 2016 to 2022 we wrote a limited number of homeowners policies in select areas of California. In 2022 we stopped writing new homeowners and condominium business in the states of California and Florida. As a result, since December 31, 2023, PIF has declined by approximately 5.0% and 21% in California and Florida, respectively. –Write homeowners coverage, excluding in Florida, through our excess and surplus lines carrier, North Light Specialty Insurance Company (“North Light”), which can include earthquake coverage (other than fire following earthquakes) that is currently ceded via quota share reinsurance. •Increased capacity in our brokerage platform for customers not offered an Allstate policy. As of December 31, 2024, Ivantage had $2.57 billion non-proprietary premiums under management. •Ceded wind exposure related to insured property located in wind pool eligible areas in certain states. •Generally require higher deductibles for tropical cyclone than all peril deductibles which are in place for a large portion of coastal insured properties. •Include coverage for flood-related losses for auto comprehensive damage coverage since we have additional catastrophe exposure, beyond the property lines, for auto customers who have purchased comprehensive damage coverage. •Provide options of coverage for roof damage, including graduated coverage and pricing based on roof type and age. In 2024, premiums written totaled $8.75 billion or 60.7% of homeowners premiums written. Hurricanes We consider the greatest areas of potential catastrophe losses due to hurricanes to be major metropolitan centers along the eastern and gulf coasts of the United States. The average premium on a property policy near these coasts is generally greater than in other areas. However, average premiums are often not considered commensurate with the inherent risk of loss. In addition, as explained in Note 16 of the consolidated financial statements, in various states Allstate is subject to assessments from assigned risk plans, reinsurance facilities and joint underwriting associations providing insurance for wind related property losses.We have addressed our risk of hurricane loss by, among other actions, purchasing reinsurance for specific states and on a countrywide basis for our personal lines property insurance in areas most exposed to hurricanes, limiting personal homeowners, landlord package policy and manufactured home new business writings in coastal areas in southern and eastern states, implementing tropical cyclone deductibles where appropriate, and not offering continuing coverage on certain policies in coastal counties in certain states. We continue to seek appropriate returns for the risks we write. This may require further actions, similar to those already taken, in geographies where we are not getting appropriate returns. However, we may maintain or opportunistically increase our presence in areas where adequate risk adjusted returns can be achieved.Earthquakes We do not offer earthquake coverage in most states. We retain approximately 23,000 PIF with earthquake coverage, with the largest number of policies located in Kentucky, due to regulatory and other reasons. We purchase reinsurance in Kentucky and enter into arrangements in many states to make earthquake coverage available through our brokerage platform. We continue to have exposure to earthquake risk on certain policies that do not specifically exclude coverage for earthquake losses, including our auto policies, and to homeowners insurance fire losses following earthquakes. Allstate homeowner policyholders in California are offered coverage for damage caused by an earthquake through the California Earthquake Authority (“CEA”), a privately financed, publicly managed state agency created to provide insurance coverage for earthquake damage. Allstate is subject to assessments from the CEA under certain circumstances as explained in Note 16 of the consolidated financial statements. While North Light writes property policies in California, which can include earthquake coverage, this coverage is 100% ceded via quota share reinsurance. Fires following earthquakes Under a standard homeowners policy we cover fire losses, including those caused by an earthquake. Actions taken related to our risk of loss from fires following earthquakes include restrictive underwriting guidelines in California for new business writings, purchasing reinsurance for Kentucky personal lines property risks, and purchasing nationwide occurrence reinsurance, excluding Florida.Wildfires Actions taken related to managing our risk of loss from wildfires include purchasing nationwide occurrence reinsurance, new and renewal inspection programs to identify and remediate wildfire risk as well as leveraging contemporary underwriting tools in select areas. While these programs are designed to mitigate risk, the exposure to wildfires still exists. We continue to manage our exposure and seek appropriate returns for the risks we write. In addition, as explained in Note 16 of the consolidated financial statements, Allstate is subject to assessments from associations providing insurance for wind related property losses. We have addressed our risk of hurricane loss by, among other actions, purchasing reinsurance for specific states and on a countrywide basis for our personal lines property insurance in areas most exposed to hurricanes, limiting personal homeowners, landlord package policy and manufactured home new business writings in coastal areas in southern and eastern states, implementing tropical cyclone deductibles where appropriate, and not offering continuing coverage on certain policies in coastal counties in certain states. We continue to seek appropriate returns for the risks we write. This may require further actions, similar to those already taken, in geographies where we are not getting appropriate returns. However, we may maintain or opportunistically increase our presence in areas where adequate risk adjusted returns can be achieved. Earthquakes We do not offer earthquake coverage in most states. We retain approximately 23,000 PIF with earthquake coverage, with the largest number of policies located in Kentucky, due to regulatory and other reasons. We purchase reinsurance in Kentucky and enter into arrangements in many states to make earthquake coverage available through our brokerage platform. We continue to have exposure to earthquake risk on certain policies that do not specifically exclude coverage for earthquake losses, including our auto policies, and to homeowners insurance fire losses following earthquakes. Allstate homeowner policyholders in California are offered coverage for damage caused by an earthquake through the California Earthquake Authority (“CEA”), a privately financed, publicly managed state agency created to provide insurance coverage for earthquake damage. Allstate is subject to assessments from the CEA under certain circumstances as explained in Note 16 of the consolidated financial statements. While North Light writes property policies in California, which can include earthquake coverage, this coverage is 100% ceded via quota share reinsurance. Fires following earthquakes Under a standard homeowners policy we cover fire losses, including those caused by an earthquake. Actions taken related to our risk of loss from fires following earthquakes include restrictive underwriting guidelines in California for new business writings, purchasing reinsurance for Kentucky personal lines property risks, and purchasing nationwide occurrence reinsurance, excluding Florida. Wildfires Actions taken related to managing our risk of loss from wildfires include purchasing nationwide occurrence reinsurance, new and renewal inspection programs to identify and remediate wildfire risk as well as leveraging contemporary underwriting tools in select areas. While these programs are designed to mitigate risk, the exposure to wildfires still exists. We continue to manage our exposure and seek appropriate returns for the risks we write. In addition, as explained in Note 16 of the consolidated financial statements, Allstate is subject to assessments from 46 www.allstate.com 46 www.allstate.com 46 www.allstate.com 2024 Form 10-K Allstate Protection 2024 Form 10-K Allstate Protection the California FAIR Plan Association providing insurance for property losses. Refer to Note 1 for more information on the impact of the California wildfires.To manage the exposure, we may implement further actions, similar to those already taken, in geographies where we are not achieving appropriate returns. However, we may maintain or opportunistically increase our presence in areas where adequate risk adjusted returns can be achieved.Catastrophe reinsurance The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during 2024 was $1.11 billion compared to $1.02 billion during 2023. Catastrophe placement premiums reduce net written and earned premium with approximately 80% of the reduction related to homeowners premium. A description of our current catastrophe reinsurance program appears in Note 12 of the consolidated financial statements.Expense ratio increased 0.7 points in 2024 compared to 2023, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to fixed costs. the California FAIR Plan Association providing insurance for property losses. Refer to Note 1 for more information on the impact of the California wildfires.To manage the exposure, we may implement further actions, similar to those already taken, in geographies where we are not achieving appropriate returns. However, we may maintain or opportunistically increase our presence in areas where adequate risk adjusted returns can be achieved.Catastrophe reinsurance The total cost of our property catastrophe reinsurance programs, excluding the California FAIR Plan Association providing insurance for property losses. Refer to Note 1 for more information on the impact of the California wildfires. To manage the exposure, we may implement further actions, similar to those already taken, in geographies where we are not achieving appropriate returns. However, we may maintain or opportunistically increase our presence in areas where adequate risk adjusted returns can be achieved. Catastrophe reinsurance The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during 2024 was $1.11 billion compared to $1.02 billion during 2023. Catastrophe placement premiums reduce net written and earned premium with approximately 80% of the reduction related to homeowners premium. A description of our current catastrophe reinsurance program appears in Note 12 of the consolidated financial statements.Expense ratio increased 0.7 points in 2024 compared to 2023, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to fixed costs. reinstatement premiums, during 2024 was $1.11 billion compared to $1.02 billion during 2023. Catastrophe placement premiums reduce net written and earned premium with approximately 80% of the reduction related to homeowners premium. A description of our current catastrophe reinsurance program appears in Note 12 of the consolidated financial statements. Expense ratio increased 0.7 points in 2024 compared to 2023, primarily due to an increase in advertising costs, partially offset by higher earned premium growth relative to fixed costs. Impact of specific costs and expenses on the expense ratioFor the years ended December 31,($ in millions, except ratios)2024202320222024 vs 20232023 vs 2022Amortization of DAC$6,676 $6,070 $5,570 $606 $500 Advertising expense1,863 638 934 1,225 (296)Other costs and expenses, net of other revenue2,867 3,068 3,296 (201)(228)Amortization of purchased intangibles206 235 240 (29)(5)Restructuring and related charges51 142 44 (91)98 Total underwriting expenses$11,663 $10,153 $10,084 $1,510 $69 Premiums earned$53,866 $48,427 $43,909 $5,439 $4,518 Expense ratioAmortization of DAC12.4 12.5 12.7 (0.1)(0.2)Advertising expense3.5 1.3 2.2 2.2 (0.9)Other costs and expenses, net of other revenue5.3 6.4 7.5 (1.1)(1.1)Subtotal21.2 20.2 22.4 1.0 (2.2)Amortization of purchased intangibles0.3 0.5 0.5 (0.2)— Restructuring and related charges0.2 0.3 0.1 (0.1)0.2 Total expense ratio21.7 21.0 23.0 0.7 (2.0)"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Insurance and financial services",
      "prior_title": "Insurance and financial services",
      "current_body": "Property and casualty actual claim costs may exceed current reserves established for claims due to changes in the inflationary, regulatory and litigation environment Estimating claim reserves is an inherently uncertain and complex process. We continually refine our best estimates of losses after considering known facts and interpretations of the circumstances. The reserving methodology may be impacted by the following: •Models that rely on the assumption that past loss development patterns will persist into the future •Internal factors including experience with similar cases, actual claims paid, historical trends involving claim payment and case reserving patterns, pending levels of unpaid claims, loss management programs, product mix, contractual terms and changes in claim reporting and settlement practices •External factors such as inflation, court decisions, changes in law or litigation imposing unintended coverage or an unexpected increase in the number, size or types of claims, regulatory requirements, changes in driving patterns, delays in reporting of claims and economic conditions, the imposition and impact of tariffs, supply chain disruptions and labor shortagesThe ultimate cost of losses, or current estimates, have and may continue to vary materially from recorded reserves and such variance may adversely affect the results of operations and financial condition as the reserves and amounts due from reinsurers are reestimated. For further details, see MD&A, Application of Critical Accounting Estimates.Unexpected increases in the frequency or severity of property and casualty claims may adversely affect our results of operations and financial conditionA significant increase in claim frequency could adversely affect the results of operations and financial condition. Changes in mix of business, miles driven, weather patterns, driving behaviors or other factors can lead to changes in claim frequency. We may experience volatility in claim frequency, and short-term coverage or an unexpected increase in the number, size or types of claims, regulatory requirements, changes in driving patterns, delays in reporting of claims and economic conditions, the imposition and impact of tariffs, supply chain disruptions and labor shortages The ultimate cost of losses, or current estimates, have and may continue to vary materially from recorded reserves and such variance may adversely affect the results of operations and financial condition as the reserves and amounts due from reinsurers are reestimated. For further details, see MD&A, Application of Critical Accounting Estimates. Unexpected increases in the frequency or severity of property and casualty claims may adversely affect our results of operations and financial condition A significant increase in claim frequency could adversely affect the results of operations and financial condition. Changes in mix of business, miles driven, weather patterns, driving behaviors or other factors can lead to changes in claim frequency. We may experience volatility in claim frequency, and short-term The Allstate Corporation 21 The Allstate Corporation 21 The Allstate Corporation 21 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures trends may not be predictive of future losses over the longer term. Increases in claim severity can arise from numerous causes that are inherently difficult to predict. The following factors have and may continue to impact claim severity for auto bodily injury, auto physical damage (including collision and property damage) and homeowners coverages: •Bodily injury — more severe accidents, an increase in claims with attorney representation, higher medical consumption, and inflation •Vehicle physical damage — inflation, supply chain disruptions, labor shortages and the imposition of tariffs impacting used vehicle and parts prices, labor rates, length of claim resolution, delays in the receipt of third-party carrier claims, and a higher mix of total losses•Homeowners — inflation in the construction industry, building materials and home furnishings, changes in the mix of loss type, changes in building codes and other economic and environmental factors, including short-term supply imbalances for services, supplies in areas affected by catastrophes and the imposition of tariffsCatastrophes and severe weather events may subject us to significant lossesCatastrophic events could adversely affect operating results and cause them to vary significantly from one period to the next. Climate change could contribute to increased variability of catastrophe losses and underwriting results. Also, liquidity could be constrained by a catastrophe, or multiple catastrophes, which could result in extraordinary losses, sales of investments or a downgrade of our debt or financial strength ratings. Catastrophic losses are caused by wind and hail, wildfires, tornadoes, hurricanes, tropical storms, earthquakes, severe freeze events, volcanic eruptions, terrorism, cyberattacks, civil unrest, industrial accidents and other such events.Our personal property insurance business may incur catastrophe losses greater than: •Those experienced in prior years •The average expected level used in pricing •Current reinsurance coverage limits •Loss estimates from hurricane and earthquake models at various levels of probability Property and casualty businesses are subject to claims arising from severe weather events such as wildfires, winter storms, rain, hail and high winds. The incidence and severity of weather conditions resulting in claims are extremely volatile. The total number of policyholders affected by the event, the severity of the event and the coverage provided contribute to catastrophe and severe weather losses. Increases in the insured values of covered property, geographic concentration and the number of policyholders exposed to certain events could increase the severity of claims from catastrophic and severe weather events. Limitations in analytical models used to assess and predict the exposure to catastrophe losses may adversely affect the results of operations and financial condition We use internally developed and third-party vendor models along with our own historical data to assess exposure to catastrophe losses. The models assume various conditions and probability scenarios and may not accurately predict future losses or measure losses currently incurred. Price competition and changes in regulation and underwriting standards in property and casualty businesses may adversely affect the results of operations and financial condition The personal property-liability market is highly competitive with carriers competing through underwriting, advertising, price, customer service, innovation and distribution. Changes in regulatory standards regarding underwriting and rates could also affect the ability to predict future losses and could impact profitability. Competitors can alter underwriting standards, lower prices, have more sophisticated pricing models and increase advertising, which could result in lower growth, profitability or decrease our competitive position. A decline in the growth or profitability of the property and casualty businesses could have a material effect on the results of operations and financial condition.A regulatory environment that requires rate increases to be approved, can dictate underwriting practices and mandate participation in loss sharing arrangements, may adversely affect results of operations and financial conditionRegulatory approval of rate increases, especially during inflationary periods, may restrict rate changes that may be required to achieve targeted levels of profitability and returns on equity. If we are unsuccessful, the results of operations could be negatively impacted. Certain states may enact regulatory reforms regarding insurance rating that may make it more difficult to obtain rates that appropriately reflect the risk.In addition, certain states have enacted laws that require an insurer conducting business in that state to participate in assigned risk plans, reinsurance facilities and joint underwriting associations. Certain states also require the insurer to offer coverage to all consumers, often restricting an insurer’s ability to charge the price it might otherwise charge for the risk acceptance. In these markets, we may be compelled to underwrite significant amounts of business at lower-than-desired rates, possibly leading to unacceptable returns. Alternatively, as the facilities recognize a financial deficit, they could have the ability to assess participating insurers, adversely affecting the results of operations and financial condition. Laws and regulations of many states also limit an insurer’s ability to withdraw from one or more lines of insurance, except pursuant to a plan that is approved by the state trends may not be predictive of future losses over the longer term. Increases in claim severity can arise from numerous causes that are inherently difficult to predict. The following factors have and may continue to impact claim severity for auto bodily injury, auto physical damage (including collision and property damage) and homeowners coverages: •Bodily injury — more severe accidents, an increase in claims with attorney representation, higher medical consumption, and inflation •Vehicle physical damage — inflation, supply chain disruptions, labor shortages and the imposition of tariffs impacting used vehicle and parts prices, labor rates, length of claim resolution, delays in the receipt of third-party carrier claims, and a higher mix of total losses•Homeowners — inflation in the construction industry, building materials and home furnishings, changes in the mix of loss type, changes in building codes and other economic and environmental factors, including short-term supply imbalances for services, supplies in areas affected by catastrophes and the imposition of tariffsCatastrophes and severe weather events may subject us to significant lossesCatastrophic events could adversely affect operating results and cause them to vary significantly from one period to the next. Climate change could contribute to increased variability of catastrophe losses and underwriting results. Also, liquidity could be constrained by a catastrophe, or multiple catastrophes, which could result in extraordinary losses, sales of investments or a downgrade of our debt or financial strength ratings. Catastrophic losses are caused by wind and hail, wildfires, tornadoes, hurricanes, tropical storms, earthquakes, severe freeze events, volcanic eruptions, terrorism, cyberattacks, civil unrest, industrial accidents and other such events.Our personal property insurance business may incur catastrophe losses greater than: •Those experienced in prior years •The average expected level used in pricing •Current reinsurance coverage limits •Loss estimates from hurricane and earthquake models at various levels of probability Property and casualty businesses are subject to claims arising from severe weather events such as wildfires, winter storms, rain, hail and high winds. The incidence and severity of weather conditions resulting in claims are extremely volatile. The total number of policyholders affected by the event, the severity of the event and the coverage provided contribute to catastrophe and severe weather losses. Increases in the insured values of covered property, geographic concentration and the number of policyholders exposed to certain events trends may not be predictive of future losses over the longer term. Increases in claim severity can arise from numerous causes that are inherently difficult to predict. The following factors have and may continue to impact claim severity for auto bodily injury, auto physical damage (including collision and property damage) and homeowners coverages: •Bodily injury — more severe accidents, an increase in claims with attorney representation, higher medical consumption, and inflation •Vehicle physical damage — inflation, supply chain disruptions, labor shortages and the imposition of tariffs impacting used vehicle and parts prices, labor rates, length of claim resolution, delays in the receipt of third-party carrier claims, and a higher mix of total losses •Homeowners — inflation in the construction industry, building materials and home furnishings, changes in the mix of loss type, changes in building codes and other economic and environmental factors, including short-term supply imbalances for services, supplies in areas affected by catastrophes and the imposition of tariffs Catastrophes and severe weather events may subject us to significant losses Catastrophic events could adversely affect operating results and cause them to vary significantly from one period to the next. Climate change could contribute to increased variability of catastrophe losses and underwriting results. Also, liquidity could be constrained by a catastrophe, or multiple catastrophes, which could result in extraordinary losses, sales of investments or a downgrade of our debt or financial strength ratings. Catastrophic losses are caused by wind and hail, wildfires, tornadoes, hurricanes, tropical storms, earthquakes, severe freeze events, volcanic eruptions, terrorism, cyberattacks, civil unrest, industrial accidents and other such events. Our personal property insurance business may incur catastrophe losses greater than: •Those experienced in prior years •The average expected level used in pricing •Current reinsurance coverage limits •Loss estimates from hurricane and earthquake models at various levels of probability Property and casualty businesses are subject to claims arising from severe weather events such as wildfires, winter storms, rain, hail and high winds. The incidence and severity of weather conditions resulting in claims are extremely volatile. The total number of policyholders affected by the event, the severity of the event and the coverage provided contribute to catastrophe and severe weather losses. Increases in the insured values of covered property, geographic concentration and the number of policyholders exposed to certain events could increase the severity of claims from catastrophic and severe weather events. Limitations in analytical models used to assess and predict the exposure to catastrophe losses may adversely affect the results of operations and financial condition We use internally developed and third-party vendor models along with our own historical data to assess exposure to catastrophe losses. The models assume various conditions and probability scenarios and may not accurately predict future losses or measure losses currently incurred. Price competition and changes in regulation and underwriting standards in property and casualty businesses may adversely affect the results of operations and financial condition The personal property-liability market is highly competitive with carriers competing through underwriting, advertising, price, customer service, innovation and distribution. Changes in regulatory standards regarding underwriting and rates could also affect the ability to predict future losses and could impact profitability. Competitors can alter underwriting standards, lower prices, have more sophisticated pricing models and increase advertising, which could result in lower growth, profitability or decrease our competitive position. A decline in the growth or profitability of the property and casualty businesses could have a material effect on the results of operations and financial condition.A regulatory environment that requires rate increases to be approved, can dictate underwriting practices and mandate participation in loss sharing arrangements, may adversely affect results of operations and financial conditionRegulatory approval of rate increases, especially during inflationary periods, may restrict rate changes that may be required to achieve targeted levels of profitability and returns on equity. If we are unsuccessful, the results of operations could be negatively impacted. Certain states may enact regulatory reforms regarding insurance rating that may make it more difficult to obtain rates that appropriately reflect the risk.In addition, certain states have enacted laws that require an insurer conducting business in that state to participate in assigned risk plans, reinsurance facilities and joint underwriting associations. Certain states also require the insurer to offer coverage to all consumers, often restricting an insurer’s ability to charge the price it might otherwise charge for the risk acceptance. In these markets, we may be compelled to underwrite significant amounts of business at lower-than-desired rates, possibly leading to unacceptable returns. Alternatively, as the facilities recognize a financial deficit, they could have the ability to assess participating insurers, adversely affecting the results of operations and financial condition. Laws and regulations of many states also limit an insurer’s ability to withdraw from one or more lines of insurance, except pursuant to a plan that is approved by the state could increase the severity of claims from catastrophic and severe weather events. Limitations in analytical models used to assess and predict the exposure to catastrophe losses may adversely affect the results of operations and financial condition We use internally developed and third-party vendor models along with our own historical data to assess exposure to catastrophe losses. The models assume various conditions and probability scenarios and may not accurately predict future losses or measure losses currently incurred. Price competition and changes in regulation and underwriting standards in property and casualty businesses may adversely affect the results of operations and financial condition The personal property-liability market is highly competitive with carriers competing through underwriting, advertising, price, customer service, innovation and distribution. Changes in regulatory standards regarding underwriting and rates could also affect the ability to predict future losses and could impact profitability. Competitors can alter underwriting standards, lower prices, have more sophisticated pricing models and increase advertising, which could result in lower growth, profitability or decrease our competitive position. A decline in the growth or profitability of the property and casualty businesses could have a material effect on the results of operations and financial condition. A regulatory environment that requires rate increases to be approved, can dictate underwriting practices and mandate participation in loss sharing arrangements, may adversely affect results of operations and financial condition Regulatory approval of rate increases, especially during inflationary periods, may restrict rate changes that may be required to achieve targeted levels of profitability and returns on equity. If we are unsuccessful, the results of operations could be negatively impacted. Certain states may enact regulatory reforms regarding insurance rating that may make it more difficult to obtain rates that appropriately reflect the risk. In addition, certain states have enacted laws that require an insurer conducting business in that state to participate in assigned risk plans, reinsurance facilities and joint underwriting associations. Certain states also require the insurer to offer coverage to all consumers, often restricting an insurer’s ability to charge the price it might otherwise charge for the risk acceptance. In these markets, we may be compelled to underwrite significant amounts of business at lower-than-desired rates, possibly leading to unacceptable returns. Alternatively, as the facilities recognize a financial deficit, they could have the ability to assess participating insurers, adversely affecting the results of operations and financial condition. Laws and regulations of many states also limit an insurer’s ability to withdraw from one or more lines of insurance, except pursuant to a plan that is approved by the state 22 www.allstate.com 22 www.allstate.com 22 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures insurance department. Certain states require an insurer to participate in guaranty funds for impaired or insolvent insurance companies. These funds periodically assess losses against all insurance companies doing business in the state. The results of operations and financial condition could be adversely affected by any of these factors.Our investment portfolios are subject to market risk and declines in credit quality which may adversely affect or create volatility in investment income and cause realized and unrealized lossesWe continually evaluate investment management strategies since we are subject to risk of loss due to adverse changes in interest rates, credit spreads, equity prices, real estate values, currency exchange rates and liquidity. Adverse changes have and may continue to occur due to changes in monetary and fiscal policy, inflation, geopolitical events and the economic climate, liquidity of a market or market segment, investor return expectations or risk tolerance, insolvency or financial distress of key market makers or participants, instability of the banking sector, or changes in market perceptions of credit worthiness. Investments are subject to risks associated with economic and capital market conditions and factors that may be unique to our portfolio, including:•General weakening of the economy, which is typically reflected through higher credit spreads and lower equity and real estate valuations•Declines in credit quality •Declines in interest rates, credit spreads or sustained low interest rates could lead to declines in portfolio yields and investment income •Increases in market interest rates, credit spreads or a decrease in liquidity could have an adverse effect on the value of fixed income securities that form a substantial majority of our investment portfolios•Adverse changes in foreign currency exchange rates•Changes in U.S. and foreign tax laws •Imposition of new or increased tariffs•Supply chain disruptions, labor shortages, macro trends impacting real estate supply and demand and other factors may have an adverse impact on investment valuations and returns•Weak performance of general and joint venture partners and underlying investments unrelated to general market or economic conditions could lead to declines in investment income and cause realized losses in limited partnership interests•Concentration in any particular issuer, industry, collateral type, group of related industries, geographic sector or risk typeThe approaches we use to actively manage exposure to market risk, including rebalancing existing asset or liability portfolios, changing the type of investments purchased in the future, and use of derivative instruments to modify the market risk characteristics of existing assets and liabilities or assets expected to be purchased may not perform as intended or expected, resulting in higher than expected realized and unrealized losses.The amount and timing of net investment income, capital contributions and distributions from performance-based investments, which primarily include limited partnership interests that are recorded on a lag, can fluctuate significantly due to the underlying investments’ performance or changes in market or economic conditions. Additionally, these investments are less liquid than similar, publicly traded investments and a decline in market liquidity could impact our ability to sell them at their current carrying values.Declining equity markets or increases in interest rates or credit spreads could cause the value of the investments in our pension plans to decrease. Declines in interest rates could cause the funding ratio to decline and the value of the obligations for pension and postretirement plans to increase. These factors could decrease the funded status of the pension and postretirement plans, increasing the likelihood or magnitude of future benefit expense and contributions. For further discussion of these items, see MD&A, Market Risk.Determination of the fair value and amount of credit losses for investments includes subjective judgments and could materially impact the results of operations and financial conditionThe valuation of the portfolio includes subjective risk factors and the value of assets may differ from the actual amount received upon the sale of an asset. The degree of judgment required in determining fair values increases when: •Market observable information is less readily available•The use of different valuation assumptions may have a material effect on the assets’ fair values •Changing market conditions could materially affect the fair value of investmentsAdditionally, the determination of the amount of credit losses varies by investment type and is based on ongoing evaluation and assessment of known and inherent risks associated with the respective asset class or investment.Such evaluations and assessments are highly judgmental and are revised as conditions change and new information becomes available.We update our evaluations regularly and reflect changes in credit losses in the results of operations. Our conclusions may ultimately prove to be incorrect as assumptions, facts and circumstances change. When estimating credit loss allowances, historical loss trends, consideration of current conditions, and forecasts may not be indicative of future changes in credit losses and additional amounts may need to be recorded in the future. insurance department. Certain states require an insurer to participate in guaranty funds for impaired or insolvent insurance companies. These funds periodically assess losses against all insurance companies doing business in the state. The results of operations and financial condition could be adversely affected by any of these factors.Our investment portfolios are subject to market risk and declines in credit quality which may adversely affect or create volatility in investment income and cause realized and unrealized lossesWe continually evaluate investment management strategies since we are subject to risk of loss due to adverse changes in interest rates, credit spreads, equity prices, real estate values, currency exchange rates and liquidity. Adverse changes have and may continue to occur due to changes in monetary and fiscal policy, inflation, geopolitical events and the economic climate, liquidity of a market or market segment, investor return expectations or risk tolerance, insolvency or financial distress of key market makers or participants, instability of the banking sector, or changes in market perceptions of credit worthiness. Investments are subject to risks associated with economic and capital market conditions and factors that may be unique to our portfolio, including:•General weakening of the economy, which is typically reflected through higher credit spreads and lower equity and real estate valuations•Declines in credit quality •Declines in interest rates, credit spreads or sustained low interest rates could lead to declines in portfolio yields and investment income •Increases in market interest rates, credit spreads or a decrease in liquidity could have an adverse effect on the value of fixed income securities that form a substantial majority of our investment portfolios•Adverse changes in foreign currency exchange rates•Changes in U.S. and foreign tax laws •Imposition of new or increased tariffs•Supply chain disruptions, labor shortages, macro trends impacting real estate supply and demand and other factors may have an adverse impact on investment valuations and returns•Weak performance of general and joint venture partners and underlying investments unrelated to general market or economic conditions could lead to declines in investment income and cause realized losses in limited partnership interests•Concentration in any particular issuer, industry, collateral type, group of related industries, geographic sector or risk typeThe approaches we use to actively manage exposure to market risk, including rebalancing existing asset or liability portfolios, changing the type of investments purchased in the future, and use of derivative instruments to modify the market risk insurance department. Certain states require an insurer to participate in guaranty funds for impaired or insolvent insurance companies. These funds periodically assess losses against all insurance companies doing business in the state. The results of operations and financial condition could be adversely affected by any of these factors. Our investment portfolios are subject to market risk and declines in credit quality which may adversely affect or create volatility in investment income and cause realized and unrealized losses We continually evaluate investment management strategies since we are subject to risk of loss due to adverse changes in interest rates, credit spreads, equity prices, real estate values, currency exchange rates and liquidity. Adverse changes have and may continue to occur due to changes in monetary and fiscal policy, inflation, geopolitical events and the economic climate, liquidity of a market or market segment, investor return expectations or risk tolerance, insolvency or financial distress of key market makers or participants, instability of the banking sector, or changes in market perceptions of credit worthiness. Investments are subject to risks associated with economic and capital market conditions and factors that may be unique to our portfolio, including: •General weakening of the economy, which is typically reflected through higher credit spreads and lower equity and real estate valuations •Declines in credit quality •Declines in interest rates, credit spreads or sustained low interest rates could lead to declines in portfolio yields and investment income •Increases in market interest rates, credit spreads or a decrease in liquidity could have an adverse effect on the value of fixed income securities that form a substantial majority of our investment portfolios •Adverse changes in foreign currency exchange rates •Changes in U.S. and foreign tax laws •Imposition of new or increased tariffs •Supply chain disruptions, labor shortages, macro trends impacting real estate supply and demand and other factors may have an adverse impact on investment valuations and returns •Weak performance of general and joint venture partners and underlying investments unrelated to general market or economic conditions could lead to declines in investment income and cause realized losses in limited partnership interests •Concentration in any particular issuer, industry, collateral type, group of related industries, geographic sector or risk type The approaches we use to actively manage exposure to market risk, including rebalancing existing asset or liability portfolios, changing the type of investments purchased in the future, and use of derivative instruments to modify the market risk characteristics of existing assets and liabilities or assets expected to be purchased may not perform as intended or expected, resulting in higher than expected realized and unrealized losses.The amount and timing of net investment income, capital contributions and distributions from performance-based investments, which primarily include limited partnership interests that are recorded on a lag, can fluctuate significantly due to the underlying investments’ performance or changes in market or economic conditions. Additionally, these investments are less liquid than similar, publicly traded investments and a decline in market liquidity could impact our ability to sell them at their current carrying values.Declining equity markets or increases in interest rates or credit spreads could cause the value of the investments in our pension plans to decrease. Declines in interest rates could cause the funding ratio to decline and the value of the obligations for pension and postretirement plans to increase. These factors could decrease the funded status of the pension and postretirement plans, increasing the likelihood or magnitude of future benefit expense and contributions. For further discussion of these items, see MD&A, Market Risk.Determination of the fair value and amount of credit losses for investments includes subjective judgments and could materially impact the results of operations and financial conditionThe valuation of the portfolio includes subjective risk factors and the value of assets may differ from the actual amount received upon the sale of an asset. The degree of judgment required in determining fair values increases when: •Market observable information is less readily available•The use of different valuation assumptions may have a material effect on the assets’ fair values •Changing market conditions could materially affect the fair value of investmentsAdditionally, the determination of the amount of credit losses varies by investment type and is based on ongoing evaluation and assessment of known and inherent risks associated with the respective asset class or investment.Such evaluations and assessments are highly judgmental and are revised as conditions change and new information becomes available.We update our evaluations regularly and reflect changes in credit losses in the results of operations. Our conclusions may ultimately prove to be incorrect as assumptions, facts and circumstances change. When estimating credit loss allowances, historical loss trends, consideration of current conditions, and forecasts may not be indicative of future changes in credit losses and additional amounts may need to be recorded in the future. characteristics of existing assets and liabilities or assets expected to be purchased may not perform as intended or expected, resulting in higher than expected realized and unrealized losses. The amount and timing of net investment income, capital contributions and distributions from performance-based investments, which primarily include limited partnership interests that are recorded on a lag, can fluctuate significantly due to the underlying investments’ performance or changes in market or economic conditions. Additionally, these investments are less liquid than similar, publicly traded investments and a decline in market liquidity could impact our ability to sell them at their current carrying values. Declining equity markets or increases in interest rates or credit spreads could cause the value of the investments in our pension plans to decrease. Declines in interest rates could cause the funding ratio to decline and the value of the obligations for pension and postretirement plans to increase. These factors could decrease the funded status of the pension and postretirement plans, increasing the likelihood or magnitude of future benefit expense and contributions. For further discussion of these items, see MD&A, Market Risk. Determination of the fair value and amount of credit losses for investments includes subjective judgments and could materially impact the results of operations and financial condition The valuation of the portfolio includes subjective risk factors and the value of assets may differ from the actual amount received upon the sale of an asset. The degree of judgment required in determining fair values increases when: •Market observable information is less readily available •The use of different valuation assumptions may have a material effect on the assets’ fair values •Changing market conditions could materially affect the fair value of investments Additionally, the determination of the amount of credit losses varies by investment type and is based on ongoing evaluation and assessment of known and inherent risks associated with the respective asset class or investment. Such evaluations and assessments are highly judgmental and are revised as conditions change and new information becomes available. We update our evaluations regularly and reflect changes in credit losses in the results of operations. Our conclusions may ultimately prove to be incorrect as assumptions, facts and circumstances change. When estimating credit loss allowances, historical loss trends, consideration of current conditions, and forecasts may not be indicative of future changes in credit losses and additional amounts may need to be recorded in the future. The Allstate Corporation 23 The Allstate Corporation 23 The Allstate Corporation 23 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures Participation in indemnification programs subjects us to the risk that reimbursement for qualifying claims and claims expenses may not be receivedParticipation in state-based industry pools, facilities and associations may have a material, adverse effect on the results of operations and financial condition. Our largest exposure is associated with the Michigan Catastrophic Claim Association (“MCCA”), a state-mandated indemnification mechanism for qualified Personal Injury Protection losses that exceed a specified level. To the extent the MCCA’s current and future assessments are insufficient to reimburse its ultimate obligation on existing claims to member companies, our ability to obtain the 100% indemnification of ultimate losses could be impaired. We also participate in the Federal Government National Flood Insurance Program. For further discussion of these items, see Regulation section, Indemnification Programs and Note 12 of the consolidated financial statements.We may not be able to mitigate the impact associated with changes in capital requirementsRegulatory requirements affect the amount of capital to be maintained by our subsidiary insurance companies. Changes to requirements or regulatory interpretations may result in additional capital held in our insurance companies and could require us to increase prices, reduce sales of certain products, or accept a return on equity below original levels assumed in pricing.A downgrade in financial strength ratings may have an adverse effect on our businessFinancial strength ratings are important factors in establishing the competitive position of insurance companies and their access to capital markets. Rating agencies have and could downgrade or change the outlook on our ratings in the future due to:•Changes in the financial profile or performance of one of our insurance companies•Changes in a rating agency’s determination of the amount of capital required to maintain a particular rating•Increases in the perceived risk of our investment portfolio, reduced confidence in management or business strategy, or other considerations that may or may not be under our controlA downgrade in ratings could have an adverse effect on sales, competitiveness, customer retention, the marketability of product offerings, liquidity, access to and cost of borrowing or refinancing existing debt obligations, results of operations and financial condition.Business, strategy and operationsWe operate in markets that are highly competitive Markets in which we operate are highly competitive, and we must continually allocate resources to refine and improve products and services to maintain our reputation, enhance brand perception, and remain competitive. Negative publicity or other negative events could harm our reputation and brand perception, adversely impacting customer, employee and other relationships. If we are unsuccessful in generating new business, retaining customers or renewing contracts, or if marketing efforts and investments in brand enhancements are unsuccessful, our ability to maintain or increase premiums written or the ability to sell products could be adversely impacted.Determining competitive position is complicated in the auto and homeowners insurance business as companies use different underwriting standards to accept new customers and quotes and close rates can fluctuate across companies and locations. Pricing of products is driven by multiple factors, including loss expectations, expense structure and dissimilar return targets. Additionally, sophisticated pricing algorithms make it difficult to determine what price potential customers would pay across competitors. Pricing increases could adversely impact customer retention and ability to attract new business.Our ability to adequately and effectively price products is affected by the evolving nature of consumer needs and preferences, market and regulatory dynamics, broader use of telematics-based rate segmentation and potential change in consumer demand.There is also significant competition for producers, such as exclusive and independent agents and their licensed sales professionals. Growth and retention may be materially affected if we are unable to attract and retain effective producers or if those producers are unable to attract and retain their licensed sales professionals or customers.Many voluntary benefits contracts are renewed annually and consumer protection plan contracts are generally multi-year, but renewals occur on a rolling basis. There is a risk that employers and retailers may be able to obtain more favorable terms from competitors than they could by renewing coverage with us. These competitive pressures may adversely affect the renewal of these contracts, as well as our ability to sell products.Changing consumer preferences may adversely impact the demand for our products which may adversely impact the business Growth and retention may be impacted if customer preferences change and we are unable to effectively adapt our business model, technology and processes, including maintaining competitive products Participation in indemnification programs subjects us to the risk that reimbursement for qualifying claims and claims expenses may not be receivedParticipation in state-based industry pools, facilities and associations may have a material, adverse effect on the results of operations and financial condition. Our largest exposure is associated with the Michigan Catastrophic Claim Association (“MCCA”), a state-mandated indemnification mechanism for qualified Personal Injury Protection losses that exceed a specified level. To the extent the MCCA’s current and future assessments are insufficient to reimburse its ultimate obligation on existing claims to member companies, our ability to obtain the 100% indemnification of ultimate losses could be impaired. We also participate in the Federal Government National Flood Insurance Program. For further discussion of these items, see Regulation section, Indemnification Programs and Note 12 of the consolidated financial statements.We may not be able to mitigate the impact associated with changes in capital requirementsRegulatory requirements affect the amount of capital to be maintained by our subsidiary insurance companies. Changes to requirements or regulatory interpretations may result in additional capital held in our insurance companies and could require us to increase prices, reduce sales of certain products, or accept a return on equity below original levels assumed in pricing.A downgrade in financial strength ratings may have an adverse effect on our businessFinancial strength ratings are important factors in establishing the competitive position of insurance companies and their access to capital markets. Rating agencies have and could downgrade or change the outlook on our ratings in the future due to:•Changes in the financial profile or performance of one of our insurance companies•Changes in a rating agency’s determination of the amount of capital required to maintain a particular rating•Increases in the perceived risk of our investment portfolio, reduced confidence in management or business strategy, or other considerations that may or may not be under our controlA downgrade in ratings could have an adverse effect on sales, competitiveness, customer retention, the marketability of product offerings, liquidity, access to and cost of borrowing or refinancing existing debt obligations, results of operations and financial condition. Participation in indemnification programs subjects us to the risk that reimbursement for qualifying claims and claims expenses may not be received Participation in state-based industry pools, facilities and associations may have a material, adverse effect on the results of operations and financial condition. Our largest exposure is associated with the Michigan Catastrophic Claim Association (“MCCA”), a state-mandated indemnification mechanism for qualified Personal Injury Protection losses that exceed a specified level. To the extent the MCCA’s current and future assessments are insufficient to reimburse its ultimate obligation on existing claims to member companies, our ability to obtain the 100% indemnification of ultimate losses could be impaired. We also participate in the Federal Government National Flood Insurance Program. For further discussion of these items, see Regulation section, Indemnification Programs and Note 12 of the consolidated financial statements. We may not be able to mitigate the impact associated with changes in capital requirements Regulatory requirements affect the amount of capital to be maintained by our subsidiary insurance companies. Changes to requirements or regulatory interpretations may result in additional capital held in our insurance companies and could require us to increase prices, reduce sales of certain products, or accept a return on equity below original levels assumed in pricing. A downgrade in financial strength ratings may have an adverse effect on our business Financial strength ratings are important factors in establishing the competitive position of insurance companies and their access to capital markets. Rating agencies have and could downgrade or change the outlook on our ratings in the future due to: •Changes in the financial profile or performance of one of our insurance companies •Changes in a rating agency’s determination of the amount of capital required to maintain a particular rating •Increases in the perceived risk of our investment portfolio, reduced confidence in management or business strategy, or other considerations that may or may not be under our control A downgrade in ratings could have an adverse effect on sales, competitiveness, customer retention, the marketability of product offerings, liquidity, access to and cost of borrowing or refinancing existing debt obligations, results of operations and financial condition. Business, strategy and operationsWe operate in markets that are highly competitive Markets in which we operate are highly competitive, and we must continually allocate resources to refine and improve products and services to maintain our reputation, enhance brand perception, and remain competitive. Negative publicity or other negative events could harm our reputation and brand perception, adversely impacting customer, employee and other relationships. If we are unsuccessful in generating new business, retaining customers or renewing contracts, or if marketing efforts and investments in brand enhancements are unsuccessful, our ability to maintain or increase premiums written or the ability to sell products could be adversely impacted.Determining competitive position is complicated in the auto and homeowners insurance business as companies use different underwriting standards to accept new customers and quotes and close rates can fluctuate across companies and locations. Pricing of products is driven by multiple factors, including loss expectations, expense structure and dissimilar return targets. Additionally, sophisticated pricing algorithms make it difficult to determine what price potential customers would pay across competitors. Pricing increases could adversely impact customer retention and ability to attract new business.Our ability to adequately and effectively price products is affected by the evolving nature of consumer needs and preferences, market and regulatory dynamics, broader use of telematics-based rate segmentation and potential change in consumer demand.There is also significant competition for producers, such as exclusive and independent agents and their licensed sales professionals. Growth and retention may be materially affected if we are unable to attract and retain effective producers or if those producers are unable to attract and retain their licensed sales professionals or customers.Many voluntary benefits contracts are renewed annually and consumer protection plan contracts are generally multi-year, but renewals occur on a rolling basis. There is a risk that employers and retailers may be able to obtain more favorable terms from competitors than they could by renewing coverage with us. These competitive pressures may adversely affect the renewal of these contracts, as well as our ability to sell products.Changing consumer preferences may adversely impact the demand for our products which may adversely impact the business Growth and retention may be impacted if customer preferences change and we are unable to effectively adapt our business model, technology and processes, including maintaining competitive products"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Net asbestos reserves by type of exposure and total reserve additions",
      "prior_title": "Net asbestos reserves by type of exposure and total reserve additions",
      "current_body": "IBNR net reserves decreased $27 million as of December 31, 2024 compared to December 31, 2023. IBNR provides for reserve development of known claims and future reporting of additional unknown claims from current policyholders and ceding companies.Reinsurance and indemnification programs We purchase significant reinsurance to manage our aggregate countrywide exposure to an acceptable level. The price and terms of reinsurance and the credit quality of the reinsurer are considered in the purchase process. We utilize reinsurance to reduce exposure to catastrophe risk and manage capital, and to support the required statutory surplus and the insurance financial strength ratings of certain subsidiaries such as Castle Key Insurance Company (“CKIC”) and Allstate New Jersey Insurance Company (“ANJ”). We have also purchased reinsurance to mitigate exposures in our long-tail liability lines, including environmental, asbestos and other run-off lines as well as our commercial lines. We also participate in various indemnification mechanisms, including state-based industry pool or facility programs mandating participation by insurers offering certain coverage in their state and the federal government National Flood Insurance Program (“NFIP”). See Note 12 of the consolidated financial statements for additional details on these programs.Intercompany reinsurance We enter into certain intercompany insurance and reinsurance transactions in order to maintain underwriting control and manage insurance risk among various legal entities. These reinsurance agreements have been approved by the appropriate regulatory authorities. All significant intercompany transactions have been eliminated in consolidation.Catastrophe reinsurance We anticipate completing the placement of our 2025 nationwide catastrophe reinsurance program in the first half of 2025. For further details of the existing 2024 program, see Note 12 of the consolidated financial statements. IBNR net reserves decreased $27 million as of December 31, 2024 compared to December 31, 2023. IBNR provides for reserve development of known claims and future reporting of additional unknown claims from current policyholders and ceding companies.Reinsurance and indemnification programs We purchase significant reinsurance to manage our aggregate countrywide exposure to an acceptable level. The price and terms of reinsurance and the credit quality of the reinsurer are considered in the purchase process. We utilize reinsurance to reduce exposure to catastrophe risk and manage capital, and to support the required statutory surplus and the insurance financial strength ratings of certain subsidiaries such as Castle Key Insurance Company (“CKIC”) and Allstate New Jersey Insurance Company (“ANJ”). We have also purchased reinsurance to mitigate exposures in our long-tail liability lines, including environmental, asbestos and other run-off lines as well as our commercial lines. We also participate in various indemnification mechanisms, including state-based IBNR net reserves decreased $27 million as of December 31, 2024 compared to December 31, 2023. IBNR provides for reserve development of known claims and future reporting of additional unknown claims from current policyholders and ceding companies. Reinsurance and indemnification programs We purchase significant reinsurance to manage our aggregate countrywide exposure to an acceptable level. The price and terms of reinsurance and the credit quality of the reinsurer are considered in the purchase process. We utilize reinsurance to reduce exposure to catastrophe risk and manage capital, and to support the required statutory surplus and the insurance financial strength ratings of certain subsidiaries such as Castle Key Insurance Company (“CKIC”) and Allstate New Jersey Insurance Company (“ANJ”). We have also purchased reinsurance to mitigate exposures in our long-tail liability lines, including environmental, asbestos and other run-off lines as well as our commercial lines. We also participate in various indemnification mechanisms, including state-based industry pool or facility programs mandating participation by insurers offering certain coverage in their state and the federal government National Flood Insurance Program (“NFIP”). See Note 12 of the consolidated financial statements for additional details on these programs.Intercompany reinsurance We enter into certain intercompany insurance and reinsurance transactions in order to maintain underwriting control and manage insurance risk among various legal entities. These reinsurance agreements have been approved by the appropriate regulatory authorities. All significant intercompany transactions have been eliminated in consolidation.Catastrophe reinsurance We anticipate completing the placement of our 2025 nationwide catastrophe reinsurance program in the first half of 2025. For further details of the existing 2024 program, see Note 12 of the consolidated financial statements. industry pool or facility programs mandating participation by insurers offering certain coverage in their state and the federal government National Flood Insurance Program (“NFIP”). See Note 12 of the consolidated financial statements for additional details on these programs. Intercompany reinsurance We enter into certain intercompany insurance and reinsurance transactions in order to maintain underwriting control and manage insurance risk among various legal entities. These reinsurance agreements have been approved by the appropriate regulatory authorities. All significant intercompany transactions have been eliminated in consolidation. Catastrophe reinsurance We anticipate completing the placement of our 2025 nationwide catastrophe reinsurance program in the first half of 2025. For further details of the existing 2024 program, see Note 12 of the consolidated financial statements. 56 www.allstate.com 56 www.allstate.com 56 www.allstate.com 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense 2024 Form 10-K Reserve for Property and Casualty Insurance Claims and Claims Expense Reinsurance and indemnification recoverables, net of the allowance established for uncollectible amountsS&P financial strength rating (1)A.M. Best financial strength rating (1)Reinsurance or indemnificationrecoverables on paid and unpaid claims, net($ in millions)20242023Indemnification programsState-based industry pool or facility programsMCCA (2) N/AN/A$6,478 $6,424 North Carolina Reinsurance Facility (“NCRF”)N/AN/A456 382 New Jersey Property-Liability Insurance Guaranty Association (“PLIGA”) N/AN/A370 326 Florida Hurricane Catastrophe Fund (“FHCF”)N/AN/A73 82 Other34 32 Federal Government - NFIPN/AN/A279 76 Subtotal7,690 7,322 Catastrophe reinsurance recoverablesRenaissance Reinsurance LimitedA+A+44 31 Sanders RE II Ltd.N/AN/A31 36 DaVinci Reinsurance LimitedA+A31 19 Other271 264 Subtotal377 350 Other reinsurance recoverables, net (3)Lloyd’s of LondonN/AA+175 180 Pacific Valley Insurance Company, Inc.N/AN/A77 67 Westport Insurance CorporationAA-A+75 87 Aleka Insurance Inc.N/AN/A62 113 Swiss Reinsurance America CorporationAA-A+35 47 Other, including allowance for credit losses368 458 Subtotal792 952 Total Property-Liability 8,859 8,624 Protection Services28 26 Total $8,887 $8,650"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Macro, regulatory and risk environment",
      "prior_title": "Macro, regulatory and risk environment",
      "current_body": "Conditions in the global economy and capital markets could adversely affect the business and results of operations Global economic and capital market conditions could adversely impact demand for our products, returns on our investment portfolio and results of operations. The conditions that would have the largest impact on our business include: •Low or negative economic growth •Interest rate levels •Rising inflation increasing claims and claims expense •Protectionist trade policy actions, such as tariffs and quotas •Substantial increases in delinquencies or defaults on debt •Significant downturns in the market value or liquidity of our investment portfolio •Prolonged downturn in equity valuations The Allstate Corporation 27 The Allstate Corporation 27 The Allstate Corporation 27 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures •Reduced consumer spending and business investmentStressed conditions, volatility and disruptions in global capital markets or financial asset classes could adversely affect our investment portfolio. Our assumptions about portfolio diversification may not hold across market conditions, which could lead to heightened investment losses. Declines in consumer confidence and spending, including internationally, and periods of high unemployment or labor shortages could change consumer behaviors and impact the sales of our consumer protection plan products and other products and services we sell.Capital and credit market conditions may significantly affect our ability to meet liquidity needs or obtain credit on acceptable termsIn periods of extreme volatility and disruption in the capital and credit markets, liquidity and credit capacity may be severely restricted. Our access to additional financing depends on a variety of factors such as market conditions, the general availability of credit, the overall availability of credit to the industry, our credit ratings and credit capacity, as well as lenders’ perception of our long- or short-term financial prospects. In such circumstances, our ability to obtain capital to fund operating expenses, financing costs, capital expenditures or acquisitions may be limited, and the cost of any such capital may be significant. A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our businessA large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest, declines in trust in government and businesses or other disruptive or destabilizing events may result in loss of life, property damage, and disruptions to commerce and reduced economic activity. Some of the assets in our investment portfolio may be adversely affected by declines in the equity markets, changes in interest rates, reduced liquidity and economic activity caused by such events. Additionally, such events could have a material effect on sales, liquidity and operating results.The failure of cyber or other information security controls, could result in a loss or disclosure of confidential information, damage to our reputation, additional costs and impair our ability to conduct business effectivelyWe use technology, artificial intelligence and data to perform necessary business functions. There are threats that could impact our ability to protect our data and systems; if the threats materialize, they could impact:•Confidentiality — protecting our data from disclosure to unauthorized parties•Integrity — ensuring data is not changed accidentally or without authorization and is accurate•Availability — ensuring our data and systems are accessible to meet business needs We collect, use, store or transmit a large amount of confidential, proprietary and other information (including personal information of customers, claimants or employees) in connection with the operation of our business. Systems are subject to increased cyberattacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering.We constantly defend against threats to our data and systems, including malware, ransomware and computer virus attacks, unauthorized access, system failures and disruptions. We have experienced breaches of data and systems, although to date none of these breaches has had a material effect on business, operations or reputation. Events like these may jeopardize the information processed and stored in, and transmitted through, computer systems and networks and otherwise cause interruptions or malfunctions in operations, which could result in damage to reputation, financial losses, litigation, increased costs, regulatory penalties or customer dissatisfaction.These risks may increase in the future as threats become more sophisticated and we continue to expand internet and mobile strategies, develop additional remote connectivity solutions to serve our employees and customers, develop and expand products and services designed to protect customers’ digital footprint, and build and maintain an integrated digital enterprise. The risk of cyberattacks could be exacerbated by geopolitical tensions, including hostile actions taken by state-sponsored and terrorist organizations.Use of third-party services (e.g., cloud technology, software as a service and artificial intelligence) can make it more difficult to identify and respond to cyberattacks. Service providers and other vendors may also be subject to cybersecurity risks and our efforts to review and assess their security controls may not be successful in preventing or mitigating the effects of such events. The failure of our or third-party vendors’ business continuity plans to restore operations in a timely manner could result in business disruption and a financial impactThe occurrence of a disaster or event that results in the shutdown, disruption, degradation or unavailability of one or more of systems or facilities, unanticipated problems with disaster recovery processes, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on results of operations and financial condition, particularly if those events affect computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of employees were unavailable or unable to access systems due to such a disaster or event, our ability to effectively conduct business could be severely compromised. •Reduced consumer spending and business investmentStressed conditions, volatility and disruptions in global capital markets or financial asset classes could adversely affect our investment portfolio. Our assumptions about portfolio diversification may not hold across market conditions, which could lead to heightened investment losses. Declines in consumer confidence and spending, including internationally, and periods of high unemployment or labor shortages could change consumer behaviors and impact the sales of our consumer protection plan products and other products and services we sell.Capital and credit market conditions may significantly affect our ability to meet liquidity needs or obtain credit on acceptable termsIn periods of extreme volatility and disruption in the capital and credit markets, liquidity and credit capacity may be severely restricted. Our access to additional financing depends on a variety of factors such as market conditions, the general availability of credit, the overall availability of credit to the industry, our credit ratings and credit capacity, as well as lenders’ perception of our long- or short-term financial prospects. In such circumstances, our ability to obtain capital to fund operating expenses, financing costs, capital expenditures or acquisitions may be limited, and the cost of any such capital may be significant. A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our businessA large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest, declines in trust in government and businesses or other disruptive or destabilizing events may result in loss of life, property damage, and disruptions to commerce and reduced economic activity. Some of the assets in our investment portfolio may be adversely affected by declines in the equity markets, changes in interest rates, reduced liquidity and economic activity caused by such events. Additionally, such events could have a material effect on sales, liquidity and operating results.The failure of cyber or other information security controls, could result in a loss or disclosure of confidential information, damage to our reputation, additional costs and impair our ability to conduct business effectivelyWe use technology, artificial intelligence and data to perform necessary business functions. There are threats that could impact our ability to protect our data and systems; if the threats materialize, they could impact:•Confidentiality — protecting our data from disclosure to unauthorized parties•Integrity — ensuring data is not changed accidentally or without authorization and is accurate •Reduced consumer spending and business investment Stressed conditions, volatility and disruptions in global capital markets or financial asset classes could adversely affect our investment portfolio. Our assumptions about portfolio diversification may not hold across market conditions, which could lead to heightened investment losses. Declines in consumer confidence and spending, including internationally, and periods of high unemployment or labor shortages could change consumer behaviors and impact the sales of our consumer protection plan products and other products and services we sell. Capital and credit market conditions may significantly affect our ability to meet liquidity needs or obtain credit on acceptable terms In periods of extreme volatility and disruption in the capital and credit markets, liquidity and credit capacity may be severely restricted. Our access to additional financing depends on a variety of factors such as market conditions, the general availability of credit, the overall availability of credit to the industry, our credit ratings and credit capacity, as well as lenders’ perception of our long- or short-term financial prospects. In such circumstances, our ability to obtain capital to fund operating expenses, financing costs, capital expenditures or acquisitions may be limited, and the cost of any such capital may be significant. A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or other disruptive or destabilizing events may have an adverse effect on our business A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest, declines in trust in government and businesses or other disruptive or destabilizing events may result in loss of life, property damage, and disruptions to commerce and reduced economic activity. Some of the assets in our investment portfolio may be adversely affected by declines in the equity markets, changes in interest rates, reduced liquidity and economic activity caused by such events. Additionally, such events could have a material effect on sales, liquidity and operating results. The failure of cyber or other information security controls, could result in a loss or disclosure of confidential information, damage to our reputation, additional costs and impair our ability to conduct business effectively We use technology, artificial intelligence and data to perform necessary business functions. There are threats that could impact our ability to protect our data and systems; if the threats materialize, they could impact: •Confidentiality — protecting our data from disclosure to unauthorized parties •Integrity — ensuring data is not changed accidentally or without authorization and is accurate •Availability — ensuring our data and systems are accessible to meet business needs We collect, use, store or transmit a large amount of confidential, proprietary and other information (including personal information of customers, claimants or employees) in connection with the operation of our business. Systems are subject to increased cyberattacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering.We constantly defend against threats to our data and systems, including malware, ransomware and computer virus attacks, unauthorized access, system failures and disruptions. We have experienced breaches of data and systems, although to date none of these breaches has had a material effect on business, operations or reputation. Events like these may jeopardize the information processed and stored in, and transmitted through, computer systems and networks and otherwise cause interruptions or malfunctions in operations, which could result in damage to reputation, financial losses, litigation, increased costs, regulatory penalties or customer dissatisfaction.These risks may increase in the future as threats become more sophisticated and we continue to expand internet and mobile strategies, develop additional remote connectivity solutions to serve our employees and customers, develop and expand products and services designed to protect customers’ digital footprint, and build and maintain an integrated digital enterprise. The risk of cyberattacks could be exacerbated by geopolitical tensions, including hostile actions taken by state-sponsored and terrorist organizations.Use of third-party services (e.g., cloud technology, software as a service and artificial intelligence) can make it more difficult to identify and respond to cyberattacks. Service providers and other vendors may also be subject to cybersecurity risks and our efforts to review and assess their security controls may not be successful in preventing or mitigating the effects of such events. The failure of our or third-party vendors’ business continuity plans to restore operations in a timely manner could result in business disruption and a financial impactThe occurrence of a disaster or event that results in the shutdown, disruption, degradation or unavailability of one or more of systems or facilities, unanticipated problems with disaster recovery processes, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on results of operations and financial condition, particularly if those events affect computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of employees were unavailable or unable to access systems due to such a disaster or event, our ability to effectively conduct business could be severely compromised. •Availability — ensuring our data and systems are accessible to meet business needs We collect, use, store or transmit a large amount of confidential, proprietary and other information (including personal information of customers, claimants or employees) in connection with the operation of our business. Systems are subject to increased cyberattacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. We constantly defend against threats to our data and systems, including malware, ransomware and computer virus attacks, unauthorized access, system failures and disruptions. We have experienced breaches of data and systems, although to date none of these breaches has had a material effect on business, operations or reputation. Events like these may jeopardize the information processed and stored in, and transmitted through, computer systems and networks and otherwise cause interruptions or malfunctions in operations, which could result in damage to reputation, financial losses, litigation, increased costs, regulatory penalties or customer dissatisfaction. These risks may increase in the future as threats become more sophisticated and we continue to expand internet and mobile strategies, develop additional remote connectivity solutions to serve our employees and customers, develop and expand products and services designed to protect customers’ digital footprint, and build and maintain an integrated digital enterprise. The risk of cyberattacks could be exacerbated by geopolitical tensions, including hostile actions taken by state-sponsored and terrorist organizations. Use of third-party services (e.g., cloud technology, software as a service and artificial intelligence) can make it more difficult to identify and respond to cyberattacks. Service providers and other vendors may also be subject to cybersecurity risks and our efforts to review and assess their security controls may not be successful in preventing or mitigating the effects of such events. The failure of our or third-party vendors’ business continuity plans to restore operations in a timely manner could result in business disruption and a financial impact The occurrence of a disaster or event that results in the shutdown, disruption, degradation or unavailability of one or more of systems or facilities, unanticipated problems with disaster recovery processes, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on results of operations and financial condition, particularly if those events affect computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of employees were unavailable or unable to access systems due to such a disaster or event, our ability to effectively conduct business could be severely compromised. 28 www.allstate.com 28 www.allstate.com 28 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures Losses from changing climate and weather conditions may adversely affect financial condition, profitability or cash flowsClimate change affects the occurrence of certain natural events, such as increasing the frequency or severity of wind, tornado, hailstorm and thunderstorm events due to increased convection in the atmosphere. There could also be more frequent wildfires in certain geographies, more flooding and the potential for increased severity of hurricanes. As a result, incurred losses from such events and the demand, price and availability of reinsurance coverages for automobile and homeowners insurance may be affected.Climate change may also impact insurability by impairing our ability to identify and quantify potential hazards that will result in losses and offer customers products at an affordable price. The investment portfolio is also subject to the effects of climate change as economic shifts alter the return dynamic of long-term investments and increase valuation risk.Due to significant variability associated with future changing climate conditions, we are unable to predict the impact climate change will have on our businesses.Efforts to meet evolving environmental, social, and governance standards may not meet stakeholders' expectationsSome existing or potential investors, customers, employees, regulators, and other stakeholders evaluate business practices according to a variety of environmental, social and governance (“ESG”) standards and expectations, including those related to climate change, inclusive diversity and equity, data privacy, and the well-being of our employees. Some regulators have proposed or adopted, or may propose or adopt, pro- or anti-ESG rules or standards applicable to the business.Business practices and disclosures are evaluated against ESG standards which are continually evolving and not always well defined or readily measurable today. ESG-related expectations may also reflect contrasting or conflicting values or agendas. Our practices may not change in the particular ways or at the rate stakeholders expect. We may fail to meet our commitments or targets. Our policies and processes to evaluate and manage ESG priorities in coordination with other business priorities may not prove completely effective or fully satisfy our stakeholders. Customers and potential customers may choose not to do business with us and potential applicants and employees may choose not to work for us based on ESG practices and related policies and actions. We may face adverse regulatory, investor, media, or public scrutiny leading to business, reputational, or legal challenges.Evolving privacy and data security regulations and increased focus on enforcement could impact our business, increase costs and any violations could subject us to regulatory fines and reputational impact Personal information is subject to an increasing number of federal, state, local and international laws and regulations regarding privacy and data security, as well as contractual commitments. Any failure or perceived failure by us to comply with such obligations may result in governmental enforcement actions and fines, litigation or public statements against us by consumer advocacy groups or others and could cause our employees and customers to lose trust in us, which could have an adverse effect on our reputation and business. The failure to identify, measure and manage risk effectively, or the failure to restore business operations after a cybersecurity event, could have a material impact on our financial condition or results of operations Integrated operational risk and return management processes and practices may not be sufficient to timely detect and mitigate operational risks, including those posed by third-party service providers, that could have an adverse effect on our reputation and business. For additional information, see the Regulation section, Privacy Regulation and Data Security.We are subject to extensive regulation, and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally, and potential further restrictive regulation may increase operating costs and limit growthWe largely operate in the highly regulated insurance and broader financial services sectors and are subject to extensive laws, regulations, executive orders and directives that are complex and subject to change. Changes may lead to additional expenses, increased legal exposure, or increased reserve or capital requirements limiting our ability to grow or to achieve targeted profitability. Moreover, laws and regulations are administered and enforced by governmental authorities that exercise interpretive latitude, including:•State insurance regulators •State securities administrators•State attorneys general•U.S. Federal agencies including the SEC, the Financial Industry Regulatory Authority, the Department of Labor, the U.S. Department of Justice, the Consumer Financial Protection Bureau and the National Labor Relations Board•Governments, regulators, and agencies in jurisdictions outside of the U.S. where we conduct businessConsequently, compliance with one regulator’s or enforcement authority’s interpretation of a legal issue may not result in compliance with another’s interpretation of the same issue.There is risk that one regulator’s or enforcement authority’s interpretation of a legal issue may change to our detriment. There is also a risk that changes in the overall legal environment may cause us to change our views regarding the actions we need to take from a legal risk management perspective. This could necessitate changes to practices that may adversely Losses from changing climate and weather conditions may adversely affect financial condition, profitability or cash flowsClimate change affects the occurrence of certain natural events, such as increasing the frequency or severity of wind, tornado, hailstorm and thunderstorm events due to increased convection in the atmosphere. There could also be more frequent wildfires in certain geographies, more flooding and the potential for increased severity of hurricanes. As a result, incurred losses from such events and the demand, price and availability of reinsurance coverages for automobile and homeowners insurance may be affected.Climate change may also impact insurability by impairing our ability to identify and quantify potential hazards that will result in losses and offer customers products at an affordable price. The investment portfolio is also subject to the effects of climate change as economic shifts alter the return dynamic of long-term investments and increase valuation risk.Due to significant variability associated with future changing climate conditions, we are unable to predict the impact climate change will have on our businesses.Efforts to meet evolving environmental, social, and governance standards may not meet stakeholders' expectationsSome existing or potential investors, customers, employees, regulators, and other stakeholders evaluate business practices according to a variety of environmental, social and governance (“ESG”) standards and expectations, including those related to climate change, inclusive diversity and equity, data privacy, and the well-being of our employees. Some regulators have proposed or adopted, or may propose or adopt, pro- or anti-ESG rules or standards applicable to the business.Business practices and disclosures are evaluated against ESG standards which are continually evolving and not always well defined or readily measurable today. ESG-related expectations may also reflect contrasting or conflicting values or agendas. Our practices may not change in the particular ways or at the rate stakeholders expect. We may fail to meet our commitments or targets. Our policies and processes to evaluate and manage ESG priorities in coordination with other business priorities may not prove completely effective or fully satisfy our stakeholders. Customers and potential customers may choose not to do business with us and potential applicants and employees may choose not to work for us based on ESG practices and related policies and actions. We may face adverse regulatory, investor, media, or public scrutiny leading to business, reputational, or legal challenges.Evolving privacy and data security regulations and increased focus on enforcement could impact our business, increase costs and any violations could subject us to regulatory fines and reputational impact Personal information is subject to an increasing number of federal, state, local and international laws and regulations regarding privacy and data security, as Losses from changing climate and weather conditions may adversely affect financial condition, profitability or cash flows Climate change affects the occurrence of certain natural events, such as increasing the frequency or severity of wind, tornado, hailstorm and thunderstorm events due to increased convection in the atmosphere. There could also be more frequent wildfires in certain geographies, more flooding and the potential for increased severity of hurricanes. As a result, incurred losses from such events and the demand, price and availability of reinsurance coverages for automobile and homeowners insurance may be affected. Climate change may also impact insurability by impairing our ability to identify and quantify potential hazards that will result in losses and offer customers products at an affordable price. The investment portfolio is also subject to the effects of climate change as economic shifts alter the return dynamic of long-term investments and increase valuation risk. Due to significant variability associated with future changing climate conditions, we are unable to predict the impact climate change will have on our businesses. Efforts to meet evolving environmental, social, and governance standards may not meet stakeholders' expectations Some existing or potential investors, customers, employees, regulators, and other stakeholders evaluate business practices according to a variety of environmental, social and governance (“ESG”) standards and expectations, including those related to climate change, inclusive diversity and equity, data privacy, and the well-being of our employees. Some regulators have proposed or adopted, or may propose or adopt, pro- or anti-ESG rules or standards applicable to the business. Business practices and disclosures are evaluated against ESG standards which are continually evolving and not always well defined or readily measurable today. ESG-related expectations may also reflect contrasting or conflicting values or agendas. Our practices may not change in the particular ways or at the rate stakeholders expect. We may fail to meet our commitments or targets. Our policies and processes to evaluate and manage ESG priorities in coordination with other business priorities may not prove completely effective or fully satisfy our stakeholders. Customers and potential customers may choose not to do business with us and potential applicants and employees may choose not to work for us based on ESG practices and related policies and actions. We may face adverse regulatory, investor, media, or public scrutiny leading to business, reputational, or legal challenges. Evolving privacy and data security regulations and increased focus on enforcement could impact our business, increase costs and any violations could subject us to regulatory fines and reputational impact Personal information is subject to an increasing number of federal, state, local and international laws and regulations regarding privacy and data security, as well as contractual commitments. Any failure or perceived failure by us to comply with such obligations may result in governmental enforcement actions and fines, litigation or public statements against us by consumer advocacy groups or others and could cause our employees and customers to lose trust in us, which could have an adverse effect on our reputation and business. The failure to identify, measure and manage risk effectively, or the failure to restore business operations after a cybersecurity event, could have a material impact on our financial condition or results of operations Integrated operational risk and return management processes and practices may not be sufficient to timely detect and mitigate operational risks, including those posed by third-party service providers, that could have an adverse effect on our reputation and business. For additional information, see the Regulation section, Privacy Regulation and Data Security.We are subject to extensive regulation, and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally, and potential further restrictive regulation may increase operating costs and limit growthWe largely operate in the highly regulated insurance and broader financial services sectors and are subject to extensive laws, regulations, executive orders and directives that are complex and subject to change. Changes may lead to additional expenses, increased legal exposure, or increased reserve or capital requirements limiting our ability to grow or to achieve targeted profitability. Moreover, laws and regulations are administered and enforced by governmental authorities that exercise interpretive latitude, including:•State insurance regulators •State securities administrators•State attorneys general•U.S. Federal agencies including the SEC, the Financial Industry Regulatory Authority, the Department of Labor, the U.S. Department of Justice, the Consumer Financial Protection Bureau and the National Labor Relations Board•Governments, regulators, and agencies in jurisdictions outside of the U.S. where we conduct businessConsequently, compliance with one regulator’s or enforcement authority’s interpretation of a legal issue may not result in compliance with another’s interpretation of the same issue.There is risk that one regulator’s or enforcement authority’s interpretation of a legal issue may change to our detriment. There is also a risk that changes in the overall legal environment may cause us to change our views regarding the actions we need to take from a legal risk management perspective. This could necessitate changes to practices that may adversely well as contractual commitments. Any failure or perceived failure by us to comply with such obligations may result in governmental enforcement actions and fines, litigation or public statements against us by consumer advocacy groups or others and could cause our employees and customers to lose trust in us, which could have an adverse effect on our reputation and business. The failure to identify, measure and manage risk effectively, or the failure to restore business operations after a cybersecurity event, could have a material impact on our financial condition or results of operations Integrated operational risk and return management processes and practices may not be sufficient to timely detect and mitigate operational risks, including those posed by third-party service providers, that could have an adverse effect on our reputation and business. For additional information, see the Regulation section, Privacy Regulation and Data Security. We are subject to extensive regulation, and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally, and potential further restrictive regulation may increase operating costs and limit growth We largely operate in the highly regulated insurance and broader financial services sectors and are subject to extensive laws, regulations, executive orders and directives that are complex and subject to change. Changes may lead to additional expenses, increased legal exposure, or increased reserve or capital requirements limiting our ability to grow or to achieve targeted profitability. Moreover, laws and regulations are administered and enforced by governmental authorities that exercise interpretive latitude, including: •State insurance regulators •State securities administrators •State attorneys general •U.S. Federal agencies including the SEC, the Financial Industry Regulatory Authority, the Department of Labor, the U.S. Department of Justice, the Consumer Financial Protection Bureau and the National Labor Relations Board •Governments, regulators, and agencies in jurisdictions outside of the U.S. where we conduct business Consequently, compliance with one regulator’s or enforcement authority’s interpretation of a legal issue may not result in compliance with another’s interpretation of the same issue. There is risk that one regulator’s or enforcement authority’s interpretation of a legal issue may change to our detriment. There is also a risk that changes in the overall legal environment may cause us to change our views regarding the actions we need to take from a legal risk management perspective. This could necessitate changes to practices that may adversely The Allstate Corporation 29 The Allstate Corporation 29 The Allstate Corporation 29 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures impact the business. In some cases, state insurance laws and regulations are generally intended to protect or benefit purchasers or users of insurance products, not holders of securities that we issue. These laws and regulations may limit the ability to grow or to improve the profitability of the business.We conduct business outside of the United States, including customer, vendor and business partner relationships, process and information technology operations, and outsourcing of certain business functions. Our operations, vendors and business partnerships outside of the United States are subject to additional regulatory requirements and operating and political risks. In addition, governments outside of the U.S. have in the past and may in the future adopt laws and regulations applicable to our non-U.S. subsidiaries, including laws related to privacy, data security, human rights and the environment, that carry penalties for non-compliance based on consolidated enterprise revenue. We may incur substantial costs and other negative consequences if any of these risks occur, including an adverse effect on our business, results of operations and financial condition.Regulatory reforms, and the more stringent application of existing regulations, may make it more expensive for us to conduct our businessThe federal government has enacted and continues to propose comprehensive regulatory reforms for financial services entities. As part of a larger effort to strengthen the regulation of the financial services market, certain reforms are applicable to the insurance industry. A growing number of state laws, enforced by a variety of regulators, on issues such as privacy and cybersecurity may also increase expenses and require additional compliance activities.The Federal Insurance Office and Financial Stability Oversight Council have been established, and the federal government may enact reforms that affect the state insurance regulatory framework. The potential impact of state or federal measures that change the nature or scope of insurance and financial regulation is uncertain but may make it more expensive for us to conduct business and limit our ability to grow or achieve profitability.Losses from legal and regulatory actions may be material to the results of operations, cash flows and financial conditionWe are involved in various legal actions, including class action litigation challenging a range of company practices; including coverages provided by insurance products, some of which involve claims for substantial or indeterminate amounts. We are also involved in various regulatory actions and inquiries, including market conduct exams by state insurance regulatory agencies. In the event of an unfavorable outcome in any of these matters, the ultimate liability may be more than amounts currently accrued or disclosed in our reasonably possible loss range and may be material to the results of operations, cash flows and financial condition. Additionally, judicial or legislative conditions, such as trends in the size of jury awards, developments in the law relating to the liability of insurers or tort defendants, plaintiffs targeting insurers in purported class action litigation relating to claims handling and other practices, and rulings concerning the availability or amount of certain types of damages could cause our ultimate liabilities to change from current expectations. For additional information, see Note 16 of the consolidated financial statements. Changes in or the application of accounting standards issued by standard-setting bodies and changes in tax laws may adversely affect results of operations and financial conditionOur financial statements are subject to GAAP, which are periodically revised, interpreted or expanded. Accordingly, we may be required to adopt new guidance or interpretations, which may have a material effect on the results of operations and financial condition and could adversely impact financial strength ratings.•Market declines, changes in business strategies or other events impacting the fair value of goodwill or purchased intangible assets could result in an impairment charge to income •Realization of deferred tax assets assumes that we can fully utilize the deductions recognized for tax purposes; we may recognize additional tax expense if these assets are not fully utilized•New tax legislative initiatives may be enacted that may impact the effective tax rate and could adversely affect our tax positions or tax liabilities For further details, see the Regulation section, MD&A, Application of Critical Accounting Estimates and Note 2 of the consolidated financial statements.Misconduct or fraudulent acts by employees, agents and third parties may expose us to financial loss, disruption of business, regulatory assessments and reputational harm The company and the insurance industry are susceptible to past and future misconduct or fraudulent activities by employees, representative agents, vendors, customers and other third parties. These activities could include:•Fraud against the company, its employees and its customers through illegal or prohibited activities •Unauthorized acts or representations, unauthorized use or disclosure of personal or proprietary information, deception, and misappropriation of funds or other benefits impact the business. In some cases, state insurance laws and regulations are generally intended to protect or benefit purchasers or users of insurance products, not holders of securities that we issue. These laws and regulations may limit the ability to grow or to improve the profitability of the business.We conduct business outside of the United States, including customer, vendor and business partner relationships, process and information technology operations, and outsourcing of certain business functions. Our operations, vendors and business partnerships outside of the United States are subject to additional regulatory requirements and operating and political risks. In addition, governments outside of the U.S. have in the past and may in the future adopt laws and regulations applicable to our non-U.S. subsidiaries, including laws related to privacy, data security, human rights and the environment, that carry penalties for non-compliance based on consolidated enterprise revenue. We may incur substantial costs and other negative consequences if any of these risks occur, including an adverse effect on our business, results of operations and financial condition.Regulatory reforms, and the more stringent application of existing regulations, may make it more expensive for us to conduct our businessThe federal government has enacted and continues to propose comprehensive regulatory reforms for financial services entities. As part of a larger effort to strengthen the regulation of the financial services market, certain reforms are applicable to the insurance industry. A growing number of state laws, enforced by a variety of regulators, on issues such as privacy and cybersecurity may also increase expenses and require additional compliance activities.The Federal Insurance Office and Financial Stability Oversight Council have been established, and the federal government may enact reforms that affect the state insurance regulatory framework. The potential impact of state or federal measures that change the nature or scope of insurance and financial regulation is uncertain but may make it more expensive for us to conduct business and limit our ability to grow or achieve profitability.Losses from legal and regulatory actions may be material to the results of operations, cash flows and financial conditionWe are involved in various legal actions, including class action litigation challenging a range of company practices; including coverages provided by insurance products, some of which involve claims for substantial or indeterminate amounts. We are also involved in various regulatory actions and inquiries, including market conduct exams by state insurance regulatory agencies. In the event of an unfavorable outcome in any of these matters, the ultimate liability may be more than amounts currently accrued or disclosed in our reasonably possible loss range and may be material to the results of operations, cash flows and financial condition. Additionally, judicial or legislative conditions, such as trends in the size of jury awards, developments impact the business. In some cases, state insurance laws and regulations are generally intended to protect or benefit purchasers or users of insurance products, not holders of securities that we issue. These laws and regulations may limit the ability to grow or to improve the profitability of the business. We conduct business outside of the United States, including customer, vendor and business partner relationships, process and information technology operations, and outsourcing of certain business functions. Our operations, vendors and business partnerships outside of the United States are subject to additional regulatory requirements and operating and political risks. In addition, governments outside of the U.S. have in the past and may in the future adopt laws and regulations applicable to our non-U.S. subsidiaries, including laws related to privacy, data security, human rights and the environment, that carry penalties for non-compliance based on consolidated enterprise revenue. We may incur substantial costs and other negative consequences if any of these risks occur, including an adverse effect on our business, results of operations and financial condition. Regulatory reforms, and the more stringent application of existing regulations, may make it more expensive for us to conduct our business The federal government has enacted and continues to propose comprehensive regulatory reforms for financial services entities. As part of a larger effort to strengthen the regulation of the financial services market, certain reforms are applicable to the insurance industry. A growing number of state laws, enforced by a variety of regulators, on issues such as privacy and cybersecurity may also increase expenses and require additional compliance activities. The Federal Insurance Office and Financial Stability Oversight Council have been established, and the federal government may enact reforms that affect the state insurance regulatory framework. The potential impact of state or federal measures that change the nature or scope of insurance and financial regulation is uncertain but may make it more expensive for us to conduct business and limit our ability to grow or achieve profitability. Losses from legal and regulatory actions may be material to the results of operations, cash flows and financial condition We are involved in various legal actions, including class action litigation challenging a range of company practices; including coverages provided by insurance products, some of which involve claims for substantial or indeterminate amounts. We are also involved in various regulatory actions and inquiries, including market conduct exams by state insurance regulatory agencies. In the event of an unfavorable outcome in any of these matters, the ultimate liability may be more than amounts currently accrued or disclosed in our reasonably possible loss range and may be material to the results of operations, cash flows and financial condition. Additionally, judicial or legislative conditions, such as trends in the size of jury awards, developments in the law relating to the liability of insurers or tort defendants, plaintiffs targeting insurers in purported class action litigation relating to claims handling and other practices, and rulings concerning the availability or amount of certain types of damages could cause our ultimate liabilities to change from current expectations. For additional information, see Note 16 of the consolidated financial statements. Changes in or the application of accounting standards issued by standard-setting bodies and changes in tax laws may adversely affect results of operations and financial conditionOur financial statements are subject to GAAP, which are periodically revised, interpreted or expanded. Accordingly, we may be required to adopt new guidance or interpretations, which may have a material effect on the results of operations and financial condition and could adversely impact financial strength ratings.•Market declines, changes in business strategies or other events impacting the fair value of goodwill or purchased intangible assets could result in an impairment charge to income •Realization of deferred tax assets assumes that we can fully utilize the deductions recognized for tax purposes; we may recognize additional tax expense if these assets are not fully utilized•New tax legislative initiatives may be enacted that may impact the effective tax rate and could adversely affect our tax positions or tax liabilities For further details, see the Regulation section, MD&A, Application of Critical Accounting Estimates and Note 2 of the consolidated financial statements.Misconduct or fraudulent acts by employees, agents and third parties may expose us to financial loss, disruption of business, regulatory assessments and reputational harm The company and the insurance industry are susceptible to past and future misconduct or fraudulent activities by employees, representative agents, vendors, customers and other third parties. These activities could include:•Fraud against the company, its employees and its customers through illegal or prohibited activities •Unauthorized acts or representations, unauthorized use or disclosure of personal or proprietary information, deception, and misappropriation of funds or other benefits in the law relating to the liability of insurers or tort defendants, plaintiffs targeting insurers in purported class action litigation relating to claims handling and other practices, and rulings concerning the availability or amount of certain types of damages could cause our ultimate liabilities to change from current expectations. For additional information, see Note 16 of the consolidated financial statements. Changes in or the application of accounting standards issued by standard-setting bodies and changes in tax laws may adversely affect results of operations and financial condition Our financial statements are subject to GAAP, which are periodically revised, interpreted or expanded. Accordingly, we may be required to adopt new guidance or interpretations, which may have a material effect on the results of operations and financial condition and could adversely impact financial strength ratings. •Market declines, changes in business strategies or other events impacting the fair value of goodwill or purchased intangible assets could result in an impairment charge to income •Realization of deferred tax assets assumes that we can fully utilize the deductions recognized for tax purposes; we may recognize additional tax expense if these assets are not fully utilized •New tax legislative initiatives may be enacted that may impact the effective tax rate and could adversely affect our tax positions or tax liabilities For further details, see the Regulation section, MD&A, Application of Critical Accounting Estimates and Note 2 of the consolidated financial statements. Misconduct or fraudulent acts by employees, agents and third parties may expose us to financial loss, disruption of business, regulatory assessments and reputational harm The company and the insurance industry are susceptible to past and future misconduct or fraudulent activities by employees, representative agents, vendors, customers and other third parties. These activities could include: •Fraud against the company, its employees and its customers through illegal or prohibited activities •Unauthorized acts or representations, unauthorized use or disclosure of personal or proprietary information, deception, and misappropriation of funds or other benefits 30 www.allstate.com 30 www.allstate.com 30 www.allstate.com 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures 2024 Form 10-K Part I - Item 1A. Risk Factors and Other Disclosures Item 1B. Unresolved Staff CommentsNone.Item 1C. CybersecurityGovernanceThe Allstate Corporation Board of Directors (“Allstate Board”) has overall responsibility for oversight of enterprise risk. The Audit Committee of the Allstate Board oversees the effectiveness of the cybersecurity program. The Audit Committee retains an external cybersecurity advisor to consult on cybersecurity matters and perform assessments of the Allstate Information Security Program (the “Program”).The Chief Information Security Officer (“CISO”) regularly updates the Audit Committee and Allstate Board on Information Security Program status, cybersecurity risk management, the control environment, emerging threat intelligence and key risk and performance measurements.Our CISO is responsible for the development and execution of the security strategy which protects Allstate’s information from external and internal cybersecurity threats. He has more than 20 years of information security leadership experience.Risk management and strategyThe Enterprise Risk and Return Council has delegated the power and authority to manage cybersecurity risks to the Information Security Council (“ISC”). The CISO chairs the ISC, with senior management representation from across the Company including representatives from Privacy, Legal and Technology. The ISC monitors, makes mitigating decisions about, and escalates information security risks that are outside the Company’s established risk tolerance. Additionally, it provides executive sponsorship of information security controls and oversees the development and review of the information security policy and enterprise security standards. Information Security Program Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats. The Company’s Program uses a risk-based, defense-in-depth approach to identify, assess and manage cybersecurity risks to the Company’s information assets and systems, enabling the business to achieve its objectives. The Information Security Program is aligned with industry best practices and standards including the ISO 27001/27002 standards, the Control Objectives for Information and Related Technologies Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”).Allstate’s Information Security Program outlines the responsibilities and expectations for the security of Allstate information systems. The Program includes standards, policies and procedures requiring the implementation of technical, administrative and physical controls to manage the risk to Allstate information and systems. These standards, policies and procedures cover industry-standard information security domains, including risk assessment, third-party supplier risk management, vulnerability management, identity and access management, application security, network security, cybersecurity awareness training, encryption and incident management.Dedicated personnel support information security operations 24 hours per day, seven days per week. Allstate’s incident response program is designed to detect, respond and recover from a range of cybersecurity-related incidents.Allstate conducts risk and control assessments to proactively identify cybersecurity threats impacting the organization’s business processes. The Company conducts enterprise threat-based risk assessments for multiple aspects of the business, including applications, infrastructure, environments and business processes. Allstate documents the identified risks, tracking them based on potential impact and the likelihood of them occurring.Allstate performs control effectiveness tests, vulnerability scans and penetration tests to assess controls and proactively identify vulnerabilities for prioritization and remediation. Findings are managed and tracked in accordance with Allstate’s governance, risk and compliance standards.We also have a cybersecurity resiliency strategy that will enhance our ability to anticipate, withstand and recover from cybersecurity attacks and maintain the availability of our critical business operations. Cybersecurity resiliency plans improve our recovery speed to protect Allstate and its customers against adverse impacts due to ransomware and other cybersecurity events.Item 2. PropertiesIn North America, we occupy approximately 685 retail stores, administrative, data processing, claims handling and other support facilities that total 710 thousand square feet owned and 3.9 million square feet leased.Outside North America, we own 1 property in Northern Ireland and lease locations in India, the United Kingdom and Australia.The locations where Allstate exclusive agencies operate in the U.S. are typically leased by the agencies.Item 3. Legal ProceedingsInformation required for Item 3 is incorporated by reference to the discussion under the heading “Regulation and compliance” and under the heading “Legal and regulatory proceedings and inquiries” in Note 16 of the consolidated financial statements.Item 4. Mine Safety DisclosuresNot applicable. Item 1B. Unresolved Staff CommentsNone.Item 1C. CybersecurityGovernanceThe Allstate Corporation Board of Directors (“Allstate Board”) has overall responsibility for oversight of enterprise risk. The Audit Committee of the Allstate Board oversees the effectiveness of the cybersecurity program. The Audit Committee retains an external cybersecurity advisor to consult on cybersecurity matters and perform assessments of the Allstate Information Security Program (the “Program”).The Chief Information Security Officer (“CISO”) regularly updates the Audit Committee and Allstate Board on Information Security Program status, cybersecurity risk management, the control environment, emerging threat intelligence and key risk and performance measurements.Our CISO is responsible for the development and execution of the security strategy which protects Allstate’s information from external and internal cybersecurity threats. He has more than 20 years of information security leadership experience.Risk management and strategyThe Enterprise Risk and Return Council has delegated the power and authority to manage cybersecurity risks to the Information Security Council (“ISC”). The CISO chairs the ISC, with senior management representation from across the Company including representatives from Privacy, Legal and Technology. The ISC monitors, makes mitigating decisions about, and escalates information security risks that are outside the Company’s established risk tolerance. Additionally, it provides executive sponsorship of information security controls and oversees the development and review of the information security policy and enterprise security standards. Information Security Program Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats. The Company’s Program uses a risk-based, defense-in-depth approach to identify, assess and manage cybersecurity risks to the Company’s information assets and systems, enabling the business to achieve its objectives. The Information Security Program is aligned with industry best practices and standards including the ISO 27001/27002 standards, the Control Objectives for Information and Related Technologies Framework and the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”).Allstate’s Information Security Program outlines the responsibilities and expectations for the security of Allstate information systems. The Program includes standards, policies and procedures requiring the implementation of technical, administrative and physical controls to manage the risk to Allstate information and systems. These standards, policies Item 1B. Unresolved Staff Comments None. Item 1C. Cybersecurity Governance The Allstate Corporation Board of Directors (“Allstate Board”) has overall responsibility for oversight of enterprise risk. The Audit Committee of the Allstate Board oversees the effectiveness of the cybersecurity program. The Audit Committee retains an external cybersecurity advisor to consult on cybersecurity matters and perform assessments of the Allstate Information Security Program (the “Program”). The Chief Information Security Officer (“CISO”) regularly updates the Audit Committee and Allstate Board on Information Security Program status, cybersecurity risk management, the control environment, emerging threat intelligence and key risk and performance measurements. Our CISO is responsible for the development and execution of the security strategy which protects Allstate’s information from external and internal cybersecurity threats. He has more than 20 years of information security leadership experience."
    }
  ]
}