ALLSTATE CORPALL

ALLSTATE CORP Segments Disclosure

10-KFiled Feb 20, 20268 min read
Note 5
Reportable Segments
The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”). The CODM reviews financial performance and makes decisions about the allocation of resources for the four reportable segments: Allstate Protection, Run-off Property-Liability, Protection Services and Corporate. The CODM considers each segment profit measure when making decisions regarding the allocation of resources to the segments.
Allstate Protection and Run-off Property-Liability segments comprise Property-Liability. The Company does not allocate 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, Protection Services and Corporate levels for decision-making purposes. These segments are described below and align with the Company’s key product and service offerings.
The accounting policies of the reportable segments are the same as those described in Note 2. The effects of inter-segment transactions are eliminated in the consolidated results. For segment results, services provided by Protection Services to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective segments.
The dispositions of the EVB and group health businesses did not qualify for discontinued operations. The Allstate Health and Benefits segment is no longer a reportable segment, with results of this segment recast to reflect only the results of the EVB and group health businesses. The retained individual health business, previously included in the Allstate Health and Benefits segment, is a non-reportable segment with results included in all other for all periods presented.
Allstate Protection principally offers private passenger auto, homeowners and other property insurance in the United States and Canada, with earned premiums accounting for 85.2% of Allstate’s 2025 consolidated revenues. Allstate Protection primarily operates in the U.S. (all 50 states and the District of Columbia (“D.C.”)) and Canada. For 2025, the top geographic locations for statutory direct premiums for the Allstate Protection segment were Texas, California, Florida and New York. No other jurisdiction accounted for more than 5% of statutory direct premiums for Allstate Protection. Revenues from external customers generated outside the United States were $2.20 billion, $2.14 billion and $2.06 billion in 2025, 2024 and 2023, respectively.
Run-off Property-Liability includes results from property and casualty insurance coverage that primarily relates to policies written from 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.
Protection Services comprises Protection Plans, Roadside, Dealer Services, Identity Protection and Arity. Protection Services offers 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 intelligence services and analytic solutions using automotive telematics information and identity theft protection and remediation services. Protection Services primarily operates in the U.S. and Canada, with Protection Plans also offering services in Europe and Asia. Revenues from external customers generated outside the United States were $630 million, $472 million and $346 million in 2025, 2024 and 2023, respectively.
Corporate comprises holding company activities and certain non-insurance operations, including expenses associated with strategic initiatives.
Measuring segment profit or loss
The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services and Corporate segments and Allstate Health and Benefits when a reportable segment.
Underwriting income (loss) is calculated as premiums earned and other revenue, less claims and claims expenses, amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP.
Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding:
•Net gains and losses on investments and derivatives
•Pension and other postretirement remeasurement gains and losses
•Amortization or impairment of purchased intangibles
•Gain or loss on disposition
•Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
•Income tax expense or benefit on reconciling items
A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below.
Reportable segments financial performance
For the years ended December 31,
($ in millions)202520242023
Underwriting income (loss) by segment
Allstate Protection$8,694 $3,153 $(2,090)
Run-off Property-Liability
(154)(73)(94)
Adjusted net income (loss) by segment, after-tax
Protection Services218 217 106 
Allstate Health and Benefits43 156 195 
Corporate
(362)(426)(415)
Reconciliation of segment performance measures to net income (loss) applicable to common shareholders
Allstate Protection and Run-off Property-Liability net investment income3,157 2,810 2,218 
Net gains (losses) on investments and derivatives(168)(225)(300)
Pension and other postretirement remeasurement gains (losses)35 37 (9)
Amortization of purchased intangibles (1)
(48)(74)(94)
Gain on disposition
1,616 16 4 
All other (2)
3 30 47 
Non-recurring costs (3)
— — (90)
Income tax (expense) benefit on Allstate Protection and Run-off Property-Liability and reconciling items (4)
(2,884)(1,138)182 
Total reconciling items1,711 1,456 1,958 
Less: Net loss attributable to noncontrolling interest (5)
(15)(67)(24)
Net income (loss) applicable to common shareholders$10,165 $4,550 $(316)
(1)Excludes amortization of purchased intangibles in Allstate Protection, which is already included above in underwriting income.
(2)Includes results of the individual health business, which was previously included within the Allstate Health and Benefits segment. Prior period results were recast to reflect the historical results of the individual health business.
(3)Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business.
(4)The tax computation of the reporting segments and income tax benefit (expense) on reconciling items to net income (loss) are computed discretely based on the tax law of the jurisdictions applicable to the reporting entities.
(5)Reflects net loss attributable to noncontrolling interest in Allstate Protection.
Reportable segments revenue information
For the years ended December 31,
($ in millions)202520242023
Allstate Protection
Insurance premiums
Auto$38,090 $36,475 $32,940 
Homeowners15,363 13,360 11,739 
Other personal lines3,134 2,823 2,387 
Commercial lines419 609 811 
Other business lines
676 599 550 
Total Allstate Protection insurance premiums57,682 53,866 48,427 
Other revenue2,051 1,895 1,545 
Total Allstate Protection59,733 55,761 49,972 
Run-off Property-Liability
— — — 
Protection Services
Protection plans
2,159 1,869 1,540 
Roadside assistance160 150 195 
Protection and insurance products
502 503 508 
Intersegment premiums and service fees (1)
137 180 138 
Other revenue489 441 319 
Net investment income99 94 73 
Net gains (losses) on investments and derivatives4 (14)— 
Total Protection Services
3,550 3,223 2,773 
Allstate Health and Benefits
Employer voluntary benefits 243 985 1,001 
Group health 247 481 440 
Other revenue 163 327 296 
Net investment income24 94 78 
Net gains (losses) on investments and derivatives(1)(4)5 
Total Allstate Health and Benefits676 1,883 1,820 
Corporate
Other revenue81 72 89 
Net investment income160 88 105 
Net gains (losses) on investments and derivatives67 22 (11)
Total Corporate
308 182 183 
Reconciliation of revenue
Allstate Protection and Run-off Property-Liability net investment income
3,157 2,810 2,218 
Allstate Protection and Run-off Property-Liability net gains (losses) on investments and derivatives
(237)(228)(292)
All other635 655 558 
Intersegment eliminations (1)
(137)(180)(138)
Consolidated revenues$67,685 $64,106 $57,094 
(1)Intersegment insurance premiums and service fees are primarily related to Arity and Roadside and are eliminated in the consolidated financial statements.
Reportable segments expense information used in measure for segment profit or loss
For the years ended December 31,
($ in millions)202520242023
Allstate Protection
Claims and claims expense excluding catastrophe losses and prior year reserve reestimates (1)
$33,628 $34,092 $34,243 
Catastrophe losses4,959 4,964 5,636 
Non-catastrophe prior year reserve reestimates
(1,961)(6)485 
Amortization of DAC7,003 6,676 6,070 
Advertising expense
2,100 1,863 638 
Amortization of purchased intangibles
183 206 235 
Restructuring and related charges54 51 142 
Other segment expenses (2)
5,073 4,762 4,613 
Total
51,039 52,608 52,062 
Run-off Property-Liability
Claims and claims expense prior year reserve reestimates (3)
151 68 89 
Other segment expenses (2)
3 5 5 
Total
154 73 94 
Protection Services
Claims and claims expense
699 641 632 
Amortization of DAC1,328 1,217 1,058 
Non-deferrable commissions
447 343 249 
Restructuring and related charges4 2 6 
Other segment expenses (2)
786 747 640 
Income taxes on operations
65 71 83 
Total3,329 3,021 2,668 
Allstate Health and Benefits
Accident, health and other policy benefits
379 991 888 
Amortization of DAC30 119 124 
Restructuring and related charges— 2 6 
Other segment expenses (2)
213 577 549 
Income taxes on operations
12 42 53 
Total634 1,731 1,620 
Corporate
Interest expense399 400 379 
Restructuring and related charges1 5 13 
Other segment expenses (2)
160 163 185 
Income taxes on operations
(74)(99)(99)
Preferred stock dividends
117 117 128 
Total$603 $586 $606 
(1)Includes Allstate Protection incurred loss adjustment expenses, net of reinsurance of $2.98 billion, $2.89 billion and $2.79 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
(2)Includes employee-related costs, professional services, technology and certain other operating costs and expenses.
(3)Includes Run-off Property-Liability incurred loss adjustment expenses, net of reinsurance of $28 million, $9 million and $10 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Additional significant financial performance data
For the years ended December 31,
($ in millions)202520242023
Amortization of DAC
Allstate Protection$7,003 $6,676 $6,070 
Protection Services
1,328 1,217 1,058 
Allstate Health and Benefits30 119 124 
All other
28 27 26 
Consolidated$8,389 $8,039 $7,278 
Amortization of purchased intangibles
Allstate Protection$183 $206 $235 
Protection Services
36 47 62 
Allstate Health and Benefits1 10 12 
All other
$11 17 20 
Consolidated$231 $280 $329 
Income tax expense (benefit)
Allstate Protection and Run-off Property-Liability$2,407 $1,144 $(136)
Protection Services
57 56 66 
Allstate Health and Benefits (1)
474 40 53 
Corporate
(49)(83)(122)
All other
1 5 4 
Consolidated$2,890 $1,162 $(135)
(1)Includes income tax expense on the gain on sale of the EVB and group health businesses.
Capital expenditures for long-lived assets are generally made at the Property-Liability level as the Company does not allocate assets to the Allstate Protection and Run-off Property-Liability segments. A portion of these long-lived assets are used by entities included in the Protection Services, Corporate and until July 1, 2025, Allstate Health and Benefits segments and accordingly, are charged to these segments in proportion to their use.
Reportable segment total assets, investments and deferred policy acquisition costs
As of December 31,
($ in millions)20252024
Assets
Allstate Protection and Run-off Property-Liability$102,801 $96,988 
Protection Services
8,372 7,540 
Allstate Health and Benefits— 3,714 
Corporate
7,610 2,727 
All other975 648 
Consolidated$119,758 $111,617 
Investments (1)
Allstate Protection and Run-off Property-Liability$73,222 $67,671 
Protection Services
2,312 2,228 
Allstate Health and Benefits (2)
— 219 
Corporate
7,503 2,332 
All other
200 160 
Consolidated$83,237 $72,610 
Deferred policy acquisition costs
Allstate Protection$2,803 $2,548 
Protection Services
3,274 3,161 
Allstate Health and Benefits (2)
— 1 
All other
86 63 
Consolidated$6,163 $5,773 
(1)The balances reflect the elimination of related party investments between segments.
(2)As of December 31, 2024, $1.91 billion of investments and $521 million of deferred policy acquisition costs were classified as held for sale and not included in the table above.
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Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 24, 2025
2023Feb 21, 2024
2022Feb 16, 2023
2021Feb 18, 2022
2020Feb 22, 2021
2019Feb 21, 2020
2018Feb 15, 2019
2017Feb 26, 2018
2016Feb 17, 2017
2015Feb 19, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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