Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Volume and Fair Value Positions of Derivative Instruments


Summary of the volume and fair value positions of derivative instruments as of June 30, 2026
($ in millions, except number of contracts)		Volume (1)
	Balance sheet location	Notional amount		Number of contracts	Fair value, net		Gross asset		Gross liability
Asset derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts

Interest rate cap agreements	Other investments	$	37	n/a	$	—	$	—	$	—

Futures	Other assets	n/a		5,743	3		3		—
Equity and index contracts

Futures	Other assets	n/a		1,018	2		2		—



Foreign currency contracts
Foreign currency forwards	Other investments	225		n/a	3		5		(2)

Contingent consideration	Other assets	225		n/a	130		130		—
Credit default contracts

Credit default swaps - selling protection	Other investments	347		n/a	10		10		—





Total asset derivatives		$	834	6,761	$	148	$	150	$	(2)

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities and accrued expenses	$	37	n/a	$	—	$	—	$	—



Futures	Other liabilities and accrued expenses	n/a		12,764	(5)		—		(5)
Equity and index contracts

Futures	Other liabilities and accrued expenses	n/a		5	—		—		—



Foreign currency contracts
Foreign currency forwards	Other liabilities and accrued expenses	345		n/a	(1)		4		(5)










Total liability derivatives		382		12,769	(6)		$	4	$	(10)
Total derivatives		$	1,216	19,530	$	142

(1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)


Summary of the volume and fair value positions of derivative instruments as of December 31, 2025
($ in millions, except number of contracts)		Volume (1)
	Balance sheet location	Notional amount		Number of contracts	Fair value, net		Gross asset		Gross liability
Asset derivatives



Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	$	37	n/a	$	—	$	—	$	—
Futures	Other assets	n/a		3,386	—		—		—
Equity and index contracts
Options	Other investments	n/a		12	—		—		—
Futures	Other assets	n/a		32	—		—		—



Foreign currency contracts
Foreign currency forwards	Other investments	$	503	n/a	(14)		2		(16)

Contingent consideration	Other assets	250		n/a	147		147		—
Credit default contracts

Credit default swaps - selling protection	Other investments	550		n/a	9		9		—



Total asset derivatives		$	1,340	3,430	$	142	$	158	$	(16)

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities and accrued expenses	$	37	n/a	$	(1)	$	—	$	(1)

Futures	Other liabilities and accrued expenses	n/a		1,323	—		—		—
Equity and index contracts
Options	Other liabilities and accrued expenses	n/a		12	—		—		—
Futures	Other liabilities and accrued expenses	n/a		1,063	(2)		—		(2)



Foreign currency contracts
Foreign currency forwards	Other liabilities and accrued expenses	$	45	n/a	(3)		—		(3)






Total liability derivatives		82		2,398	(6)		$	—	$	(6)
Total derivatives		$	1,422	5,828	$	136

Schedule of Gross and Net Amounts for OTC Derivatives


Gross and net amounts for OTC derivatives (1)
($ in millions)			Offsets
	Gross amount		Counter-party netting		Cash collateral (received) pledged		Net amount on balance sheet		Securities collateral (received) pledged		Net amount
June 30, 2026
Asset derivatives	$	9	$	(6)	$	—	$	3	$	(3)	$	—
Liability derivatives	(7)		6		—		(1)		—		(1)

December 31, 2025
Asset derivatives	$	2	$	(16)	$	15	$	1	$	—	$	1
Liability derivatives	(20)		16		3		(1)		—		(1)

(1)All OTC derivatives are subject to enforceable MNAs.

Schedule of Gains (Losses) from Valuation and Settlements Reported on Derivatives


Gains (losses) from valuation and settlements reported on derivatives
($ in millions)	Net gains (losses) on investments and derivatives		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Three months ended June 30, 2026
Interest rate contracts	$	(33)	$	—	$	(33)
Equity and index contracts	1		31		32
Contingent consideration	—		2		2

Foreign currency contracts	1		—		1
Credit default contracts	5		—		5



Total	$	(26)	$	33	$	7

Six months ended June 30, 2026
Interest rate contracts	$	(46)	$	—	$	(46)
Equity and index contracts	1		23		24
Contingent consideration	—		8		8

Foreign currency contracts	11		—		11
Credit default contracts	2		—		2



Total	$	(32)	$	31	$	(1)

Three months ended June 30, 2025
Interest rate contracts	$	(9)	$	—	$	(9)
Equity and index contracts	(8)		17		9
Contingent consideration	—		3		3

Foreign currency contracts	(38)		—		(38)
Credit default contracts	(10)		—		(10)



Total	$	(65)	$	20	$	(45)

Six months ended June 30, 2025
Interest rate contracts	$	(10)	$	—	$	(10)
Equity and index contracts	(8)		6		(2)
Contingent consideration	—		3		3

Foreign currency contracts	(56)		—		(56)
Credit default contracts	(10)		—		(10)



Total	$	(84)	$	9	$	(75)

Schedule of OTC Cash and Securities Collateral Pledged


OTC cash and securities collateral pledged
($ in millions)	June 30, 2026
Pledged by the Company	$	1
Pledged to the Company (1)	4

(1) $1 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision.

Schedule of OTC Derivatives Counterparty Credit Exposure by Counterparty Credit Rating


OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	June 30, 2026							December 31, 2025
Rating (1)	Number of counter-parties	Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)		Number of counter-parties	Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)
AA-	1	$	262	$	3	$	—	1	$	37	$	—	$	—
A+	1	24		—		—		—	—		—		—




Total	2	$	286	$	3	$	—	1	$	37	$	—	$	—

(1)Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.

(2)Only OTC derivatives with a net positive fair value are included for each counterparty.

Schedule of Exchange Traded and Cleared Margin Deposits


Exchange traded and cleared margin deposits
($ in millions)	June 30, 2026
Pledged by the Company	$	88
Received by the Company	1

Schedule of Fair Value of Instruments with Credit-Risk-Contingent Features

The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.


($ in millions)	June 30, 2026		December 31, 2025
Gross liability fair value of contracts containing credit-risk-contingent features	$	7	$	16
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(6)		(2)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(1)		(14)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—	$	—

Schedule of Derivative CDS Notional Amount by Credit Rating and Fair Value of Protection Sold


CDS notional amounts by credit rating and fair value of protection sold
($ in millions)	Notional amount
	AAA		AA		A		BBB		BB and lower		Total		Fair value
June 30, 2026




Index
Corporate debt	$	—	$	—	$	—	$	300	$	47	$	347	$	10
Total	$	—	$	—	$	—	$	300	$	47	$	347	$	10

December 31, 2025




Index
Corporate debt	$	—	$	—	$	—	$	550	$	—	$	550	$	9
Total	$	—	$	—	$	—	$	550	$	—	$	550	$	9

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details