The Allstate CorporationALL

Geopolitical and trade · Government funding and budget changes

Regulatory and federal agency reforms may make it more expensive for us to conduct our business. Regulatory and federal agency reforms, including potential changes in the role of FEMA in coordinating disaster response, lapses in the authorization or changes in administration of the NFIP.

Economic and market conditions · Market volatility and financial crises

Stressed conditions, volatility and disruptions in global capital markets or financial asset classes could adversely affect our investment portfolio. Our assumptions about portfolio diversification may not hold across market conditions, which could lead to heightened investment losses.

Economic and market conditions · Economic recession and downturns

Conditions in the global economy and capital markets could adversely impact demand for our products, returns on our investment portfolio and results of operations. The conditions that may have the largest impact on our business include: Low or negative economic growth.

Natural and catastrophic events · Natural disasters and extreme weather

Catastrophes and severe weather events may subject us to significant losses. Catastrophic losses are caused by wind and hail, wildfires, tornadoes, hurricanes, tropical storms, earthquakes, severe freeze events, volcanic eruptions, terrorism, cyberattacks, civil unrest, industrial accidents and other such events.

Natural and catastrophic events · Climate change and environmental impact

Losses from changing climate and weather conditions may adversely affect financial condition, profitability or cash flows. Increased global temperatures affect the occurrence of certain natural events, such as increasing the frequency or severity of wind, tornado, hailstorm and thunderstorm events.

Capital structure and performance · Dividend policy and capital allocation

Our ability to pay dividends or repurchase stock is subject to limitations under terms of certain of our securities. The terms of the outstanding subordinated debentures prohibit us from declaring or paying any dividends or distributions on our common or preferred stock.

International and currency · Foreign exchange and currency exposure

We continually evaluate investment management strategies since we are subject to risk of loss due to adverse changes in interest rates, equity prices, credit spreads, real estate values, currency exchange rates and liquidity.

Capital structure and performance · Financial reporting and accounting risks

Market declines, changes in business strategies or other events impacting the fair value of goodwill or purchased intangible assets could result in an impairment charge to income.

Capital structure and performance · Debt management and refinancing

The Allstate Corporation is a holding company with no significant operations. Its principal assets are the stock of its subsidiaries and its directly held cash and investment portfolios. Its liabilities include debt and pension and other postretirement benefit obligations related to employees.

Capital structure and performance · Financial performance volatility

Increases in the frequency or severity of property and casualty claims may adversely affect our results of operations and financial condition. A significant increase in claim frequency could adversely affect the results of operations and financial condition.

Industry regulation · Regulatory compliance and changes

We are subject to extensive regulation, and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally, and potential further restrictive regulation may increase operating costs and limit growth. We largely operate in the highly regulated insurance and broader financial services sectors and are subject to extensive laws, regulations, executive orders and directives.

Industry regulation · Licensing and permits

A regulatory environment that requires rates and products to be approved, can dictate underwriting practices and mandate participation in loss sharing arrangements, may increase the time to market of rate increases, new products or use of advanced technologies.

Legal and litigation · Litigation and legal proceedings

Losses from legal and regulatory actions may be material to the results of operations, cash flows and financial condition. We are involved in various legal actions, including class action litigation challenging a range of company practices; including coverages provided by insurance products, some of which involve claims for substantial or indeterminate amounts.

Innovation and product development · Intellectual property protection and infringement

We may be subject to the risks and costs associated with intellectual property infringement, misappropriation and third-party claims. We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property.

Strategic execution · Geographic expansion and market entry

Our catastrophe management strategy may adversely affect premium growth. 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.

Market position and competition · Pricing pressure and margin compression

Price competition and changes in regulation and underwriting standards in property and casualty businesses may adversely affect the results of operations and financial condition. Competitors may alter underwriting standards, lower prices, have more sophisticated pricing models, introduce new products and features and increase advertising.

Market position and competition · Competitive pressure and market share loss

We operate in markets that are highly competitive. Competitors may alter underwriting standards, lower prices, have more sophisticated pricing models, introduce new products and features and increase advertising, which could result in lower growth and retention and decrease our competitive position.

Digital transformation and innovation · Technology implementation and upgrades

Technological changes may require extensive modifications to our systems and processes and extensive coordination with and reliance on the systems, technology and operations of third parties. If we are unable to adapt to or bring such advancements and innovations to market, the quality and marketability of our products may be materially affected.

Organizational and management · Leadership and management changes

The unexpected loss of key personnel could have a material adverse impact on our business because of the loss of their skills, knowledge of our products and offerings and years of industry experience and, in some cases, the difficulty of promptly finding qualified replacement personnel.

Supply chain and procurement · Transportation and logistics disruption

Supply chain disruptions, labor shortages, macro trends impacting real estate supply and demand and other factors may have an adverse impact on investment valuations and returns. Delays in the receipt of third-party carrier claims.