Employer voluntary benefits (“EVB”) business disposition On April 1, 2025, the Company closed the sale of American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business reported in the Allstate Health and Benefits segment for $1.9 billion in cash, net of purchase price adjustments. The Company recorded a gain on the sale

of $890 million or $643 million, after-tax in the second quarter of 2025.

The EVB business generated $243 million of premiums and contract charges and $22 million of adjusted net income for the three months ended March 31, 2025.


Major classes of assets and liabilities disposed of in EVB transaction
($ in millions)	April 1, 2025		December 31, 2024
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $1,765 and $1,809)	$	1,676	$	1,699


Short-term, at fair value (amortized cost $64 and $85)	64		85
Other investments, net	116		122
Total investments	1,856		1,906
Cash	29		—
Deferred policy acquisitions costs	525		521
Reinsurance recoverables, net	117		111

Other assets	523		554
Total assets	$	3,050	$	3,092

Liabilities
Reserve for future policy benefits	$	1,096	$	1,085
Contractholder funds	882		890
Other liabilities and accrued expenses	124		138
Total liabilities	$	2,102	$	2,113

Group health business disposition On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business for approximately $1.25 billion in cash, reported in the Allstate Health and Benefits segment. The assets and liabilities of the business are classified as held for sale at June 30, 2025. The transaction closed on July 1,

2025, and the Company expects to record a gain on sale in the third quarter of 2025.

The group health business generated $123 million and $247 million of premiums and contract charges for the three and six months ended June 30, 2025, respectively, and adjusted net income of $9 million and $21 million for the three and six months ended June 30, 2025, respectively.


Major classes of assets and liabilities of group health business classified as held for sale
($ in millions)	June 30, 2025
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $142)	$	143
Short-term, at fair value (amortized cost $177)	177

Total investments	320
Cash	91
Deferred policy acquisitions costs	1

Other assets	303
Total assets held for sale	$	715

Liabilities

Other liabilities and accrued expenses	$	14
Total liabilities held for sale	$	14

In addition, reserves for future policy benefits of $219 million were reinsured to Nationwide Life Insurance Company with a corresponding reinsurance recoverable established on July 1, 2025.