Consolidated VIEs primarily include Adirondack, a New York reciprocal insurer, and Skylands, a New Jersey reciprocal insurer. The Reciprocal Exchanges are insurance carriers organized as unincorporated associations. The Company does not own the equity of the Reciprocal Exchanges, which is owned by their respective policyholders.

The results of the Reciprocal Exchanges are included in the Allstate Protection segment as the Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance.

Due to ongoing operating losses, the Company recorded a loss related to variable interests held in the

Reciprocal Exchanges of $67 million in the first quarter of 2025.

Adirondack has withdrawn and stopped writing new business and Skylands has withdrawn substantially all business and stopped writing new business. As the reciprocal insurers are dissolved, policyholders will share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges. The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company.


Assets and liabilities of Reciprocal Exchanges
($ in millions)	June 30, 2026		December 31, 2025
Assets
Fixed income securities	$	3	$	4
Short-term investments	51		68


Reinsurance recoverables, net	40		53
Other assets	1		—
Total assets	$	95	$	125
Liabilities
Reserve for property and casualty insurance claims and claims expense	$	124	$	153

Other liabilities and expenses	184		186
Total liabilities	$	308	$	339