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Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables)
 12 Months Ended
Dec. 31, 2025
Reserve for Property-Liability Insurance Claims and Claims Expense  
Schedule of Rollforward of Reserve for Property and Casualty Insurance Claims and Claims Expense and Reconciliation of Total Claims and Claims Expense Incurred and Paid by Coverage and Prior Year Reserve Reestimates Included in Claims and Claims Expense
Rollforward of the reserve for property and casualty insurance claims and claims expense
($ in millions)202520242023
Balance as of January 1$41,917 $39,858 $37,541 
Less recoverables (1)
8,602 8,396 9,176 
Net balance as of January 133,315 31,462 28,365 
Incurred claims and claims expense related to:
Current year39,263 40,043 40,521 
Prior years(1,809)(308)549 
Total incurred37,454 39,735 41,070 
Claims and claims expense paid related to:
Current year(23,173)(23,488)(23,607)
Prior years(14,529)(14,394)(14,366)
Total paid(37,702)(37,882)(37,973)
Net balance as of December 3133,067 33,315 31,462 
Plus recoverables8,012 8,602 8,396 
Balance as of December 31$41,079 $41,917 $39,858 
(1)Recoverables comprises reinsurance and indemnification recoverables. See Note 11 for further details.
Reconciliation of total claims and claims expense incurred and paid by coverage
December 31, 2025
($ in millions)IncurredPaid
Allstate Protection
Auto insurance - liability coverage$14,575 $(13,741)
Auto insurance - physical damage coverage7,459 (7,584)
Homeowners insurance8,852 (8,945)
Total auto and homeowners insurance 30,886 (30,270)
Other personal lines2,281 (1,891)
Commercial lines145 (667)
Other business lines
213 (254)
Protection Services
604 (598)
Run-off Property-Liability123 (125)
Unallocated loss adjustment expenses (“ULAE”)3,241 (3,400)
Claims incurred and paid from before 2021(15)(612)
Other (1)
(24)115 
Total$37,454 $(37,702)
(1)Paid and incurred amounts primarily related to the effect of foreign currency translation adjustments.
Prior year reserve reestimates included in claims and claims expense (1)
For the years ended December 31,
Non-catastrophe losses
Catastrophe losses (2)
Total
($ in millions)202520242023202520242023202520242023
Auto (3)
$(1,852)$(328)$294 $(28)$(36)$(50)$(1,880)$(364)$244 
Homeowners(59)(73)66 43 (322)36 (16)(395)102 
Other personal lines142 224 37 (14)(7)(18)128 217 19 
Commercial lines(147)171 76 (1)(5)8 (148)166 84 
Other business lines
(45)— 12 — — — (45)— 12 
Run-off Property-Liability (4)
151 68 89 — — — 151 68 89 
Protection Services
1 — (1)— — — 1 — (1)
Total prior year reserve reestimates$(1,809)$62 $573 $— $(370)$(24)$(1,809)$(308)$549 
(1)Reserve releases are shown in parentheses.
(2)2025 includes $60 million of estimated recoveries related to the Nationwide Reinsurance Program aggregate cover for losses occurring between April 1, 2024 and December 31, 2024, and $54 million favorable subrogation settlements related to the 2021 Colorado Marshall Fire.
(3)2025 includes reserve releases primarily related to favorable severity development of $1.18 billion in personal auto injury coverage and $671 million in all other personal auto coverages.
(4)The Company’s 2025, 2024 and 2023 annual reserve reviews, using established industry and actuarial best practices, resulted in reserve reestimates that increased reserves by $146 million, $58 million and $80 million, respectively.
Schedule of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Recoverables The information about incurred and paid claims development for the 2021 to 2025 years, and the average annual percentage payout of incurred claims by age as of December 31, 2025, is presented as required supplementary information.
Auto insurance – liability coverage
($ in millions, except number of reported claims)
Incurred claims and allocated claim adjustment expenses, net of recoverables
IBNR reserves plus expected development on reported claims
Cumulative number of reported claims (in thousands)
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2025
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20212022202320242025
2021$10,468 $10,917 $11,236 $11,291 $11,119 $(172)$559 2,440 
2022— 13,308 13,307 13,565 13,293 (272)1,254 2,612 
2023— — 15,357 14,817 14,452 (365)2,547 2,602 
2024— — — 15,902 15,191 (711)5,136 2,463 
2025— — — — 16,095 10,635 2,403 
Total$70,150 $(1,520)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2021 accident years
(34)
Prior year reserve reestimates for ULAE(70)
Other— 
Total prior year reserve reestimates$(1,624)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20212022202320242025
2021$3,574 $7,341 $9,157 $10,105 $10,560 
2022— 4,466 9,098 11,087 12,039 
2023— — 5,094 9,875 11,905 
2024— — — 5,211 10,055 
2025— — — — 5,460 
Total$50,019 
All outstanding liabilities before 2021, net of recoverables
1,390 
Liabilities for claims and claim adjustment expenses, net of recoverables$21,521 
Auto insurance – physical damage coverage
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claims
Cumulative number of reported claims (in thousands)
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2025
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20212022202320242025
2021$7,236 $7,264 $7,225 $7,230 $7,230 $— $3 4,633 
2022— 9,324 9,011 9,052 9,052 — 6 4,979 
2023— — 9,441 9,099 9,072 (27)(7)4,807 
2024— — — 8,548 8,337 (211)8 4,385 
2025— — — — 7,697 576 3,830 
Total$41,388 $(238)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2021 accident years
(8)
Prior year reserve reestimates for ULAE(10)
Other— 
Total prior year reserve reestimates$(256)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20212022202320242025
2021$6,803 $7,306 $7,250 $7,229 $7,227 
2022— 8,264 9,101 9,059 9,046 
2023— — 8,498 9,104 9,079 
2024— — — 7,826 8,329 
2025— — — — 7,121 
Total$40,802 
All outstanding liabilities before 2021, net of recoverables
11 
Liabilities for claims and claim adjustment expenses, net of recoverables$597 
Homeowners insurance
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claims
Cumulative number of reported claims (in thousands)
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2025
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20212022202320242025
2021$6,318 $6,465 $6,522 $6,563 $6,510 $(53)$55 999 
2022— 6,562 6,515 6,488 6,516 28 169 795 
2023— — 9,097 8,626 8,525 (101)320 1,033 
2024— — — 8,608 8,657 49 710 1,091 
2025— — — — 8,929 2,715 819 
Total$39,137 $(77)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2021 accident years
27 
Prior year reserve reestimates for ULAE34 
Other— 
Total prior year reserve reestimates$(16)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20212022202320242025
2021$4,464 $6,060 $6,294 $6,409 $6,455 
2022— 3,910 5,961 6,231 6,347 
2023— — 5,798 7,830 8,205 
2024— — — 5,753 7,947 
2025— — — — 6,214 
Total$35,168 
All outstanding liabilities before 2021, net of recoverables
153 
Liabilities for claims and claim adjustment expenses, net of recoverables$4,122 
Schedule of Average Annual Percentage Payout of Incurred Claims by Age, Net of Recoverables
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2025
1 year2 years3 years4 years5 years
After 5 years
Auto insurance – liability coverage
33.8 %33.4 %15.1 %7.8 %4.1 %5.8 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2025
1 year2 years3 years4 years5 years
After 5 years
Auto insurance – physical damage coverage
93.1 %7.2 %(0.5)%(0.2)%— %0.4 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2025
1 year2 years3 years4 years5 years
After 5 years
Homeowners insurance66.5 %26.3 %4.0 %1.8 %0.7 %0.7 %
Schedule of Reconciliation of the Net Incurred and Paid Claims Development to Reserve for Property and Casualty Insurance Claims and Claims Expense
Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions)As of December 31, 2025
Net outstanding liabilities
Allstate Protection
Auto insurance - liability coverage$21,521 
Auto insurance - physical damage coverage597 
Homeowners insurance4,122 
Other personal lines2,664 
Commercial lines1,133 
Other business lines
93 
Protection Services
60 
Run-off Property-Liability (1)
1,326 
ULAE1,551 
Other
— 
Net reserve for property and casualty insurance claims and claims expense33,067 
Recoverables
Allstate Protection
Auto insurance - liability coverage6,301 
Auto insurance - physical damage coverage18 
Homeowners insurance679 
Other personal lines204 
Commercial lines231 
Other business lines
14 
Protection Services
12 
Run-off Property-Liability419 
ULAE134 
Total recoverables8,012 
Gross reserve for property and casualty insurance claims and claims expense$41,079 
(1)Run-off Property-Liability includes business in run-off with most of the claims related to accident years more than 40 years ago. IBNR reserves represent $761 million of the total reserves as of December 31, 2025.