The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include the following costs related to these programs:

•Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $15 million and $13 million during the three months ended June 30, 2025 and 2024, respectively, and $31 million and $23 million during the six months ended June 30, 2025 and 2024, respectively. Restructuring expenses during the second quarter and first six months of 2025 primarily related to streamlining the organization and outsourcing certain aspects of operations. These charges are primarily recorded in the Allstate Protection segment. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future.


Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2024	$	25	$	2	$	27
Expense incurred	26		5		31

Payments and non-cash charges	(24)		(5)		(29)
Restructuring liability as of June 30, 2025	$	27	$	2	$	29

As of June 30, 2025, the cumulative amount incurred to date for active programs related to employee severance and relocation benefit expenses totaled $50 million.