Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q4 2021 Earnings Presentation
19 slides from Allstate Corporation (the)'s earnings presentation, Feb 3, 2022
Slide 1: The Allstate Corporation Fourth Quarter 2021 Earnings Presentation
The Allstate Corporation Fourth Quarter 2021 Earnings Presentation 2.03.2022 PAGE 0
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Statements and Non-GAAP Financial Information This presentation contains forward-looking statements and information. This presentation also contains non-GAAP measures that are denoted with an asterisk. You can find the reconciliation of those measures to GAAP measures within our most
Slide 3: Expanding Investor Communications in 2022
Expanding Investor Communications in 2022 • Adding quarterly non-earnings special topic calls to provide deeper insights into significant strategic or operational topics • Enhancing Property-Liability rate disclosures by posting monthly implemented rate activity on the investor relations website to
Slide 4: Allstate's Execution and Innovation Create Sustainable Shareholder Value
Allstate’s Execution and Innovation Create Sustainable Shareholder Value Increase Personal Property-Liability Market Share Operating Priorities • Better Serve Customers • Grow Customer Base Leveraging Allstate brand, customer base and capabilities • Achieve Target Returns on Capital • Proactively Ma
Slide 5: Allstate Generated Strong Results in 2021
Allstate Generated Strong Results in 2021 • Total revenues of $13.0 billion in the fourth quarter and $50.6 billion for the full year 2021 o Property-Liability insurance premiums increased, reflecting the acquisition of National General and growth in homeowners insurance o Strong performance-based r
Slide 6: Allstate Delivered on 2021 Operating Priorities
Allstate Delivered on 2021 Operating Priorities • Lowered expenses to improve the competitive price position of auto insurance Better Serve • Enterprise Net Promoter Score finished slightly below prior year Customers • Allstate Health and Benefits expanded group and individual products with the acqu
Slide 7: Property-Liability Combined Ratio Increased Due to Rising Loss Costs
Property-Liability Combined Ratio Increased Due to Rising Loss Costs and Prior Year Reserve Reestimates • Recorded combined ratio of 98.9 in the fourth quarter driven by higher underlying auto and home losses as well as unfavorable prior year reserve reestimates o Underlying loss cost increases driv
Slide 8: Auto Insurance Loss Costs Impacted by Inflationary Pressures
Auto Insurance Loss Costs Impacted by Inflationary Pressures • Auto underlying combined ratio* of 100.2 in the fourth quarter and 92.5 for the full year 2021 • Auto accident frequency increased from early pandemic levels with Allstate brand auto property damage frequency 21.5% higher than the prior
Slide 9: Addressing Increased Auto Insurance Loss Costs
Addressing Increased Auto Insurance Loss Costs • Allstate targets a mid-90s combined ratio in auto insurance • Reducing expenses to provide near-term margin improvement and mitigate impact on customers • Aggressively pursuing price increases to address increased loss costs o Implemented Allstate bra
Slide 10: Homeowners Insurance Generates Strong Returns
Homeowners Insurance Generates Strong Returns • Allstate homeowners insurance underwriting margins consistently outperform the industry o Allstate brand homeowners insurance generated $3.3 billion of underwriting income since 2017, with the industry generating nearly an $18 billion underwriting loss
Slide 11: Transformative Growth Positions Allstate for Continued Success
Transformative Growth Positions Allstate for Continued Success • Transformative Growth is a multi-year initiative to increase personal property-liability market share by building a low- cost digital insurer with broad distribution • Lower cost structure to improve competitive win rate without impact
Slide 12: Transformative Growth Drives Increased Policies in Force
Transformative Growth Drives Increased Policies in Force Through Acquisitions and Organic Growth • Property-Liability policies in force grew by 13.7% compared to prior year, driven by the National General and SafeAuto acquisitions o Allstate brand increased direct channel sales and grew homeowners s
Slide 13: Protection Services Generating Profitable Growth
Protection Services Generating Profitable Growth • Revenues(1) of $2.3 billion for the full year 2021 increased 23.5% compared to the prior year o Allstate Protection Plans (“APP”) revenues of $1.2 billion increased 23.8% compared to the prior year o Arity revenues increased due to integration of Le
Slide 14: Allstate Health and Benefits Growth and Margin Expand
Allstate Health and Benefits Growth and Margin Expand from National General Acquisition • Revenues(1) of $2.3 billion in 2021 increased 92.3%, driven by the acquisition of National General o Premiums and contract charges of $1.8 billion increased 66.5% to the prior year due to the addition of group
Slide 15: Net Investment Income Reflects Higher Performance-based Results
Net Investment Income Reflects Higher Performance-based Results • Net investment income of $3.3 billion in full year 2021 increased $1.7 billion above 2020, reflecting increased performance-based investment income • Performance-based results represent a long-term diversified approach to fund and dir
Slide 16: Proactively Manage Investment Portfolio Risk and Return
Proactively Manage Investment Portfolio Risk and Return • Divestiture of life and annuity businesses provided opportunity to improve risk adjusted returns o Portfolio reduced from $94 billion to $65 billion, substantially lowering interest rate and credit risk o Increased equity exposure while maint
Slide 17: Strong Capital Position and Cash Returns to Shareholders
Strong Capital Position and Cash Returns to Shareholders • Allstate’s capital position remains strong and enables significant cash returns to shareholders while investing in growth o Returned $4.1 billion to common shareholders in 2021 through $3.3 billion in share repurchases and $885 million in co
Slide 18: Slide 18
Slide 19: Forward-looking Statements
Forward-looking Statements • This presentation contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act
Allstate Corporation (The) — Q4 2021 Earnings Presentation on 6ix