Allstate is focused on its Transformative Growth strategy, which aims to increase personal lines market share by providing affordable, simple, and connected protection through multiple distribution channels. The company is seeking to be a low cost provider through cost reductions, identifying savings opportunities for customers through proactive protection reviews and increasing pricing sophistication.

Allstate has entered into agreements to sell its employer voluntary benefits business to StanCorp Financial Group, Inc. and its group health business to Nationwide Life Insurance Company. These transactions are expected to close in 2025, subject to regulatory approvals and customary closing conditions. The individual health business will either be retained or divested.

Allstate is furthering its commercial insurance strategy through an equity investment and commercial partnership with NEXT Insurance, a digital platform for small business insurance. This partnership expands the availability of commercial lines offerings and will expand to sell directly to consumers.

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.

The company streamlined the organization by reducing bureaucracy, risk aversion and organizational silos. Restructuring and related charges in 2024 primarily relate to the organizational transformation component of the Transformative Growth plan.

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 company notes that 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.

The company acknowledges that property and casualty actual claim costs may exceed current reserves established for claims due to changes in the inflationary, regulatory and litigation environment. The ultimate cost of losses, or current estimates, have and may continue to vary materially from recorded reserves.

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.

The personal lines insurance markets, including private passenger auto and homeowners insurance, are highly competitive. The company must continually allocate resources to refine and improve products and services to maintain our reputation, enhance brand perception, and remain competitive.

Pricing increases could adversely impact customer retention and ability to attract new business. Additionally, sophisticated pricing algorithms make it difficult to determine what price potential customers would pay across competitors.

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.

Seeking to be a low cost provider through cost reductions, identifying savings opportunities for customers through proactive protection reviews and increasing pricing sophistication. Deploying an advanced technology ecosystem to deliver affordable, simple, and connected experiences and products at a lower cost.

Restructuring and related charges in 2024 primarily relate to the organizational transformation component of the Transformative Growth plan.

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.

Deploying an advanced technology ecosystem to deliver affordable, simple, and connected experiences and products at a lower cost. Using large language models to improve customer communications.

Telematics-based program, available in 48 states and D.C. as of December 31, 2024, that uses a mobile application or an in-vehicle device to capture driving behaviors and encourage safe driving. It provides customers with information, tools and more accurate individual pricing.

Dedicated personnel support information security operations 24 hours per day, seven days per week. Allstate has implemented a robust Information Security Program to manage material risks from cybersecurity threats.

Investments totaled $72.61 billion as of December 31, 2024, increasing from $66.68 billion as of December 31, 2023. The increase is primarily due to net income, partially offset by dividends to shareholders.

The Company is within the scope of the OECD Pillar Two model rules, and certain jurisdictions where the Company operates have enacted their respective tax law to comply with the Pillar Two framework beginning on or after December 31, 2023.

As a holding company with most business operations conducted by subsidiaries, The Allstate Corporation relies on dividends from Allstate Insurance Company as one of the principal sources of cash to pay dividends and to meet its obligations.

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. Our practices may not change in the particular ways or at the rate stakeholders expect.

We are working for changes in the regulatory environment to make insurance more available and affordable for customers, encourage market innovation, improve driving safety, strengthen cybersecurity and promote better catastrophe preparedness and loss mitigation.

Climate change could contribute to increased variability of catastrophe losses and underwriting results.

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.

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.

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.