ALL 10-K & 10-Q changes, risk factors and insider trading

Unexpected increasesIncreases 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 behaviorsbehaviors, technology or The Allstate Corporation 21 other factors can lead to changes in claim frequency. We may experience volatility in claim frequency, and short-term The Allstate Corporation 21 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,consumption and inflation

•Vehicle physical damage — inflation, supply chain disruptions, labor shortagesshortages, andlabor the imposition ofrates, tariffs impacting used vehicle and parts prices, laborincreased rates,repair costs for components that have embedded advanced driver assistance systems such as cameras and sensors, 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 catastrophescatastrophes, labor shortages, labor rates and the imposition of tariffs

•The average expected level used in pricing

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. Where appropriate and supportable, the Company pursues subrogation of its losses resulting from catastrophes and severe weather events. These efforts may be impacted by external factors that vary by jurisdiction, including developments in the law that may restrict subrogation recoveries, including such claims against utility companies.

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 canmay alter underwriting standards, lower prices, have more sophisticated pricing modelsmodels, introduce new products and features and increase advertising, which could result in lower growth,growth profitabilityand orretention and decrease our competitive position. A decline in the growth or relative 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 raterates increasesand products to be approved, can dictate underwriting practices and mandate participation in loss sharing arrangements, may increase the time to market of rate increases, new products or use of advanced technologies and adversely affect results of operations and financial condition

Regulatory approval of rate increases,rates, 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 impose or are contemplating regulatory limitations on the amount of profit that insurance companies may enactearn. If our returns exceed regulatory thresholds, we may be required to issue premium credits, refunds, or implement retroactive rate adjustments to comply with applicable law. Additionally, future regulatory reforms regarding insurance ratingrating, thatmodifications to profit caps, or enforcement practices may make it more difficult to obtainutilize rates that appropriately reflect the risk.

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 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, including interest rate risk and equity price 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, equity prices, 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, unemployment, economic growth, 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.

•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

•Concentration in any particular issuer, industry, asset type, 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,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 aalthough declinesecondary inmarkets exist, they are limited and may require sales at significant discounts to carrying value based on market liquidity could impact our ability to sell them at their current carrying values.conditions.

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 The Allstate Corporation 23 increases when:

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,conditions and forecasts may not be indicative of future changes in credit losses and additional amounts may need to be recorded in the future.

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 offor ultimate losses could be impaired. We also participate in the Federal Government National Flood Insurance Program.

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.

Our ability to adequately and effectively price and personalize 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.

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 and allowing consumers to interact with us how they choose. Some competitors may offer a broader or more personalized 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 and new business models affecting the auto insurance industry

TechnologicalIncreasing changes,adoption of newer technologies such as autonomousadvanced ordriver partiallyassistance systems and autonomous vehicles or technologieschanges in business models that facilitateincrease ride, carride or homecar sharing could disrupt the demand for products from current customers,products, 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 competitive position depends on our ability to successfully deploy newadvanced 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,deploy advanced technologies 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,manner or if our competitors collectmore and use data which we do not have the ability to accessrapidly or use.successfully deploy advanced technologies in their businesses.

Innovations must be implemented in an ethical and responsible manner, in compliance with applicable insurance regulationslaws and in a responsible and compliant manner.regulations. The maturity and effectiveness of currentlyforms available generativeof artificial intelligence technology isare uncertain.rapidly The use of artificial intelligence may present ethical and reputational risks.evolving. Regulatory restrictions on the use or development of artificial intelligence may impose additional compliance or reporting obligationsobligations, andwhich 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 systemssystems, technology and operations of third parties. If we are unable to adapt to or bring such advancements and innovations to market, the quality and marketability 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,invest in marketing and customer acquisition, interact and do business with customers and design products. We may not be able to respondleverage new technologies 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,manner, which could have an adverse effect on the results of operations and financial condition.

Executing our strategy to advance and innovate technologytechnology, including leveraging artificial intelligence, 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 technologyskills to achieve our strategic goals. Advancements in technologytechnology, business process redesign and changes in consumer preferences may also impact our workforce needs in the future.

As part of the strategy, we have developed and continue to develop new insurance and non-insurance products and services to provide affordable, simple,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 effectivelyeffectively, 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.

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, The Allstate Corporation 25 size and underwriting practices in markets with significant severe weather and catastrophe risk exposure could adversely impact premium growth rates and retention.

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 1816 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 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.

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-termlong-lived assets or goodwill and indemnifications.

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,interruptions, we may suffer operational impairments and financial losses.

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.intense.

•Ability to develop employees and create new roles that align with our automation priorities and deliver greater levels of customer value 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.

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 wouldmay have the largest impact on our business include:

•Protectionist tradeTrade policy actions, such as tariffs and quotas

A large-scale pandemic, the occurrence of terrorism, military actions, political and social unrest or otherWidespread disruptive or destabilizing events may have an adverse effect on our business

ADisruptive or destabilizing events such as 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 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,Services and Corporate andsegments. OtherWe segments.use these measures in our evaluation of results of operations to analyze profitability.

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.

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,disruptions and labor shortages and potential trade policy actions, such as tariffs and quotas.shortages. 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 otherWidespread 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.

See Note 4 of the consolidated financial statements for further information on the employerEVB voluntaryand benefitsgroup disposition.health dispositions.

•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.counts.

•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.line, typically six months for an auto policy and twelve months for a homeowners policy.

Underwriting income was $8.69 billion in 2025 compared to $3.15 billion in 2024 compared to underwriting loss of $2.09 billion in 2023,2024, primarily due to increased premiums earned,earned favorableand the benefit of prior year reserve reestimates and lower losses,releases, partially offset by higher advertising costs.expenses.

Macroeconomic factors have and may continue to impact the results of our operations, financial condition and liquidity,liquidity. suchThese asconditions include U.S. government fiscal and monetary policies, tariff measures, major combat operations in Iran, the Russia/Ukraine conflict, supply chain disruptions, volatility in global energy markets and labor shortages.availability. Increased oil prices may contribute to higher transportation, manufacturing and repair costs. If sustained, these conditions may change claims frequency in auto coverages and may increase severity in auto and homeowners coverages and place additional pressure on operating costs and consumer affordability. We continue to monitor these conditions and reflect our current expectations in pricing and reserving; however, uncertainty remains regarding the extent and duration of these impacts.

Consolidated net income applicable to common shareholders increased $1.86$1.16 billion to $2.43$3.24 billion in the second quarter of 2026 and increased $3.02 billion to $5.67 billion in the first quartersix months of 2026 compared to the firstsame quarterperiods of 2025, primarily due to higher underwriting income.income and valuation gains on equity investments.

Total revenue increased 3.0%11.8% to $16.94$18.60 billion in the second quarter of 2026 and increased 7.4% to $35.54 billion in the first quartersix months of 2026 compared to the firstsame quarterperiods of 2025, primarily due to higher auto and homeowners insurance policies in force and tovaluation agains lesseron extentequity homeowners premium rate increases.investments.

Net investment income increased $84$255 million to $938$1.01 billion in the second quarter of 2026 and increased $339 million to $1.95 billion in the first quartersix months of 2026,2026 compared to the same periods of 2025, primarily due to higher market-based and performance-based investment results.

Investments totaled $85.16$87.80 billion as of MarchJune 31,30, 2026, increasing from $83.24 billion as of December 31, 2025.

Allstate shareholders’ equity was $31.61$33.70 billion as of MarchJune 31,30, 2026, increasing from $30.61 billion as of December 31, 2025, primarily due to net income, partially offset by common share repurchases, dividends to shareholders and unrealized net capital losses and dividends to shareholders.losses.

Book value per diluted common share (ratio of Allstate common shareholders’ equity to total common shares outstanding and dilutive potential common shares outstanding) was $113.52$123.38 as of MarchJune 31,30, 2026, an increase of 52.2%49.7% from $74.61$82.40 as of MarchJune 31,30, 2025, and an increase of 4.7%13.8% from $108.45 as of December 31, 2025.

Return on average Allstate common shareholders’ equity for the twelve months ended MarchJune 31,30, 2026, was 48.4%,49.1%, an increase of 27.019.5 points from 21.4%29.6% for the twelve months ended MarchJune 31,30, 2025. The increase was primarily due to higher net income applicable to common shareholders for the trailing twelve-month period ending March 31, 2026.

FirstSecond Quarter 2026 Form 10-Q 4145

FirstSecond Quarter 2026 Form 10-Q 4347

Underwriting income increased $2.30$723 million and increased $3.02 billion in the firstsecond quarter and first six months of 20262026, respectively, compared to the firstsame quarterperiods of 2025, primarily due to an increase in premiums earned, lower catastrophe losses,losses and the benefit of prior year reserve releases and increased premiums earned,releases, partially offset by higher expenses.

(2)OtherBrokered businesssolutions linesand representscollateral commissionsprotection earned fromincludes brokered property and casualty and life and annuity products, and lender-placed products.

Auto insurance premiums written increased $2$39 million in the firstsecond quarter of 2026 compared to the second quarter of 2025 and increased $41 million in the first quartersix months of 2026 compared to the first six months of 2025, primarily due to the following factors:

•PIF increased 2.6%2.8% or 658708 thousand to 25,75825,951 thousand as of MarchJune 31,30, 2026 compared to MarchJune 31,30, 2025

•Lower Allstate brand average premiums resulting from a shift in product mix towards affordable, simple and connected protection Second Quarter 2026 Form 10-Q 49 We will pursue rate adjustments in states where we are achieving acceptable returns, while implementing rates where needed to keep pace with increasing costscosts.

Homeowners insurance premiums written increased 8.3%8.1% or $288$357 million in the firstsecond quarter of 2026 compared to the second quarter of 2025 and increased 8.2% or $645 million in the first quartersix months of 2026 compared to the first six months of 2025, primarily due to the following factors:

•Higher Allstate brand average premiums resulting from rate increases and inflation in insured home replacement costs, combined with growth in policies in force First Quarter 2026 Form 10-Q 45

•In the threesix months ended MarchJune 31,30, 2026, rate increases of 7.2%4.9% were implemented resulting in a total estimated insurance premium impact of 1.4%,1.3%, excluding the impact of changes in insured home replacement costs

•PIF increased 2.5%2.9% or 190223 thousand to 7,7397,819 thousand as of MarchJune 31,30, 2026 compared to MarchJune 31,30, 2025, primarily in the direct and exclusive agency channels, partially offset in the independent agency channel

Other personalSpecialty lines premiums written increased 5.3%2.4% or $39$21 million in the firstsecond quarter of 2026 compared to the second quarter of 2025 and increased 3.8% or $60 million in the first quartersix months of 2026 compared to the first six months of 2025, primarily due to increases in landlords and personal umbrella policies, partially offset by a decrease in auto assigned risk policies purchased from other carriers. WeIn Florida, we are not writing new condominium business in Florida, and we arecompleted non-renewingthe non-renewal of certain policies induring Florida.the second quarter of 2026.

Commercial lines premiums written increased 19.1%21.0% or $18$21 million in the firstsecond quarter of 2026 compared to the second quarter of 2025 and increased 20.1% or $39 million in the first quartersix months of 2026 compared to the first six months of 2025, primarily due to an increase in new issued applications and higher average premiums from current offerings. We offer comprehensive commercial products, including brokered solutions, to customers through our exclusive agency, independent agency and direct channels.

OtherBrokered businesssolutions linesand collateral protection premiums written decreased 11.0%35.1% or $19$54 million in the firstsecond quarter of 2026 compared to the second quarter of 2025 and decreased 22.3% or $73 million in the first quartersix months of 2026 compared to the first six months of 2025, due to lower premiums from lender-placed autoagent premiums.business.

(1)Expense ratio includes other revenue of $44$42 million and $86 million for the three and six months ended MarchJune 31,30, 20262026, respectively, compared to $47 million and March$91 31,million for the three and six months ended June 30, 2025, respectively, for fees on auto assigned risk policies.

(1)The ten-year average effect of first quartertotal catastrophe losses on the total combined ratio was 8.413.5 points.points and 11.0 points in the second quarter and first six months of 2026, respectively.

(2)The ten-year average effect of first quarter homeowners catastrophe losses on the total homeowners combined ratio was 28.343.5 points.points and 36.0 points in the second quarter and first six months of 2026, respectively.

Auto loss ratio decreased 8.73.6 points and decreased 6.1 points in the second quarter and first quartersix months of 2026, respectively, compared to the same periodperiods of 2025, driven by the benefit of prior year reserve releases, excluding catastrophes, and increased earned premiums.catastrophes. Estimated report year 2026 incurred claim severity for Allstate brand increased compared to report year 2025 for major coveragescoverages, duereflecting toongoing higherinflationary repairpressures, costs,including mix of total loss frequency,rising medical inflationcosts and continued increases in attorney representation.

Homeowners loss ratio decreased 30.38.8 points and decreased 19.4 points in the firstsecond quarter and first six months of 20262026, respectively, compared to the firstsame quarterperiods of 2025, primarily due to increased premiums earned and lower catastrophe losses and increased premiums earned.losses. Gross claim frequency, excluding catastrophes, decreasedincreased in the second quarter and first quartersix months of 2026 compared to the same periodperiods of 20252025. while paidPaid claim severity, excluding catastrophes, increased in the second quarter and first six months of 2026 compared to the same periods of 2025, primarily due to fire perils. Homeowners paid claim severity can be impacted by both the mix of perils and the magnitude of specific losses paid during the quarter.

Other personalSpecialty lines loss ratio decreased 27.317.6 points and decreased 22.4 points in the firstsecond quarter and first six months of 20262026, respectively, compared to the same periodperiods of 2025, primarily due to the benefit of prior year reserve releases, excluding catastrophes, lower catastrophe losses and increased premiums earned.

Commercial lines loss ratio decreased 2.013.6 points in the second quarter of 2026 compared to the second quarter of 2025, primarily due to prior year reserve releases in the current year compared to prior year reserve strengthening in the prior year. Commercial lines loss ratio decreased 7.0 points in the first quartersix months of 2026,2026 compared to the samefirst periodsix months of 2025, primarily due to lower losses, including the benefit of prior year reserve releases, partially offset by a decrease in premiums earned.

Catastrophe losses decreased $962$268 million to $1.24$1.72 billion in the firstsecond quarter of 2026 compared to the second quarter of 2025. Catastrophe losses decreased $1.23 billion to $2.96 billion in the first quartersix months of 2026 compared to the first six months of 2025. Results in the first quarter of 2025 included $1.07$1.11 billion of losses related to the California wildfire events.

We are also exposed to man-made catastrophic events, such as certain types ofwildfires, terrorism, civil unrest, wildfires or industrial accidents. The nature and level of catastrophes in any period cannot be reliably predicted.

Catastrophe reinsurance The catastrophe reinsurance program is part of our catastrophe management strategy, which is intended to provide shareholders with long-term returns on the risks assumed in our property business, reduce earnings volatility, and provide protection to our customers. The current catastrophe reinsurance program supports our risk and return framework which incorporates robust economic capital modeling and is informed by catastrophe risk models including hurricanes, earthquakes and wildfires. As of DecemberJune 31,30, 2025,2026, the modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils was approximately $3.1$3.2 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 total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the second quarter and first quartersix months of 2026 was $308$378 million and $686 million, respectively, compared to $257$305 million and $562 million in the second quarter and first quartersix months of 2025. Catastrophe placement premiums reduce net written and earned premium with approximately 83% of the reduction related to homeowners premium.

(2)Updates to programsPrograms or contracts will be completedupdated in the second quarter of 2026.