Inflationary pressures, indicated by rising US March CPI (3.3%) and Euro Area inflation (2.6%), are a key concern as they directly increase the cost of claims for property and casualty insurers like Allstate, impacting their profitability.

Elevated catastrophe losses from severe weather events, such as the $925 million pre-tax in March 2026 alone, pose a significant ongoing risk to Allstate's underwriting performance and financial results.

Global economic stability and energy market volatility, influenced by events like the Iran War escalation and subsequent ceasefire extension, can affect consumer spending on insurance products and impact Allstate's investment portfolio returns, as well as the cost of auto repairs (due to gas prices) affecting claims.