ALLSTATE CORP

Allstate Protection Segment

Our Allstate Protection segment accounted for 92.4% of Allstate’s 2024 consolidated insurance premiums and contract charges and 18.0% of Allstate’s December 31, 2024 PIF. This segment includes private passenger auto, homeowners and other personal lines products offered through Allstate branded exclusive agents, independent agents and directly to consumers.

We have three market-facing property-liability businesses, Allstate brand, National General and Answer Financial with products and services that cater to different customer needs and distribution preferences.

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Products and distribution

Allstate Protection differentiates itself by offering a comprehensive range of affordable, simple and connected protection solutions across distribution channels for specific consumer segments.

(1)Insurance products are primarily offered by the Allstate and National General brands.

Strategy updates and additional information

Allstate exclusive agents and direct channel Our Affordable, Simple and Connected auto and homeowners insurance product rollouts will be largely completed by the end of 2025. This will include a simplified shopping and customer experience and enhanced pricing sophistication that provides a seamless experience for customers.

Independent Agents Our Custom360® middle market standard and preferred auto and homeowners insurance product will be rolled out to the majority of the country by the end of 2025.

Allstate Protection pricing and risk management strategies Our pricing and underwriting strategies and decisions are designed to generate sustainable profitable growth.

A proprietary database of underwriting and loss experience enables sophisticated pricing algorithms and methodologies to accurately price risks while seeking to attract and retain customers in multiple risk segments.

•For auto insurance, risk evaluation factors can include, but are not limited to: vehicle make, model and year; driver age and marital status; territory; years licensed; loss history; years insured with prior carrier; prior liability limits; prior lapse in

coverage; and insurance scoring utilizing telematics data and other consumer information.

•For property insurance, risk evaluation factors can include, but are not limited to: geographic location of the property; loss history; age, condition and construction characteristics of the property; insurance scoring utilizing other consumer information; and the amount of insurance purchased.

The pricing strategy involves local marketplace pricing and underwriting decisions based on risk evaluation factors to the extent permissible by applicable law and an evaluation of competitors.

Pricing of property products is intended to generate risk-adjusted returns that are acceptable over a long-term period. Rate increases are pursued to keep pace with loss cost trends, including losses from catastrophic events and those that are weather-related (such as wind, hail, lightning and freeze not meeting our criteria to be declared a catastrophe). We also take into consideration potential customer disruption, the impact on our ability to market our products, regulatory limitations, our competitive position and profitability.

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In any reporting period, loss experience from catastrophic events and weather-related losses may contribute to negative or positive underwriting performance relative to the expectations incorporated into product pricing.

Property catastrophe exposure is managed with the goal of providing shareholders an acceptable return on the risks assumed, managing variability of earnings, while providing protection to our customers. Catastrophe exposure management includes purchasing reinsurance to provide coverage for known exposure to hurricanes, earthquakes and fires following earthquakes, wildfires and other catastrophes.

Our current catastrophe reinsurance program utilizes the Company’s risk and return framework which incorporates our robust economic capital model and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires. We monitor risk both in aggregate and by peril, while also evaluating model performance relative to experience and our expectations of catastrophe risk trends. As of December 31, 2024, the modeled 1-in-100 probable maximum loss for hurricane, earthquake and wildfire perils is approximately $3.5 billion, net of reinsurance. We continually review our aggregate risk appetite and the cost and availability of reinsurance to optimize the risk and return profile of this exposure.

The use of different assumptions and updates to industry models and to our risk transfer program could materially change the projected loss. Growth strategies include areas where we believe diversification can be enhanced and an appropriate return can be earned for the risk. As a result, our modeled exposure may increase. In addition, we have exposure to other severe weather events, which impact catastrophe losses.

We are promoting measures to prevent and mitigate losses that are increasing due to climate change and increased severe weather including making homes and communities more resilient, enforcement of stronger building codes, adoption of sensible land use policies, expanded disaster response capabilities and creation of public risk sharing mechanisms.

Commercial lines strategy The commercial lines strategy is focused on growing the National General commercial auto product lines with strategic expansion as the organization shifts from the Allstate brand to the National General brand. The National General commercial auto product is replacing the Allstate Business Insurance product and is sold through exclusive agents and independent agents. The National General brand will continue to expand geographically and increase product lines that were previously sold through the Allstate brand.

In 2024, the commercial insurance strategy was further advanced through an equity investment and commercial partnership with NEXT Insurance, a high-growth, digital platform for small business insurance. This partnership expands the availability of our commercial lines offerings via the NEXT product portfolio, which complements the commercial auto

product offering, across a wider distribution network, and will expand to sell directly to consumers.

In 2023, we began exiting Allstate brand traditional commercial insurance and the run-off is expected to be complete by the end of 2025.

Answer Financial strategy Answer Financial is an insurance agency that sells Allstate and other insurance companies’ products directly to customers. Our strategy as a technology-enabled insurance agency is to provide comparison shopping and related services for consumers, offering choice, convenience and ease of use.

Compensation structure

Exclusive agent The compensation structure for Allstate exclusive agents rewards them for delivering high value to customers and achieving certain business outcomes such as profitable growth and household penetration. Allstate exclusive agent remuneration comprises a base commission, variable compensation and monthly and annual bonus opportunities.

•Agents receive a monthly base commission payment as a percentage of their total eligible written premium.

•New business variable compensation rewards agents for acquiring new customers by exceeding a base production goal and bundling products in the household. Renewal variable compensation rewards agents for bundling.

•Annual bonus compensation is based on a percentage of premiums and can be earned by agents who are meeting certain sales goals and selling additional policies to meet customer needs profitably.

Independent agent remuneration for National General comprises a base commission and an annual bonus opportunity that can be earned by agents who are profitably growing the business. The value proposition expands for key independent agency partners where we offer additional incentives for targeted growth.

•Agents receive a monthly base commission payment as a percentage of their total eligible written premium. Commission rates vary by state and by product and bundled rates are higher than monoline rates.

•Annual profit share opportunity is based upon growing premium profitably and includes higher payouts in relation to eligible premiums for agencies that achieve premium growth and profit targets.

•Additional annual incentives are offered to key agency partners to reach specific targets and are tailored to incentivize profitable growth.

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Direct channel employee agents The compensation structure for employee agents in the direct channel comprises paying employee agents a base salary as well as a variable compensation opportunity for selling a variety of products. Employee agents sell products through contact centers and also offer Direct Auto products through retail stores.

•Employee agents are compensated with a competitive base salary.

•Employee agents have variable compensation opportunities based upon meeting sales goals.

Other products and distribution

Allstate also sells commercial and homeowners (in high-risk geographies) insurance, roadside assistance and a range of non-proprietary life and annuity products offered by third-party providers.

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The personal lines insurance markets, including private passenger auto and homeowners insurance, are highly competitive. The following charts provide Allstate Protection’s combined market share compared to our principal U.S. competitors using statutory direct written premium for the year ended December 31, 2023, according to A.M. Best.

We primarily operate in the U.S. (all 50 states and D.C.) and Canada. Our top geographic markets based on 2024 statutory direct premiums are reflected below.

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