Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q2 2021 Earnings Presentation
17 slides from Allstate Corporation (the)'s earnings presentation, Aug 5, 2021
Slide 1: The Allstate Corporation Second Quarter 2021 Earnings Presentation
The Allstate Corporation Second Quarter 2021 Earnings Presentation 08.05.2021 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: Allstate's Strategy To Increase Shareholder Value Through Execution, Innovation and Long-Term Value Creation
Allstate’s Strategy To Increase Shareholder Value Through Execution, Innovation and Long-Term Value Creation Increase Personal Property-Liability Market Share First Half 2021 Highlights Execution Transformative Growth: Customers • Expand Customer Access • Improve Customer Value • Increased Property-
Slide 4: Allstate's Strategy: Innovation and Long-Term Value Creation
Allstate’s Strategy To Increase Shareholder Value Through Execution, Innovation and Long-Term Value Creation Increase Personal Property-Liability Market Share Transformative Growth: First Half 2021 Highlights • Expand Customer Access Innovation • Improve Customer Value • Increase Sophistication and
Slide 5: Allstate Delivers Strong Performance as Economic Activity Increases
Allstate Delivers Strong Performance as Economic Activity Increases • Total revenues of $12.6 billion in the second quarter increased 21.6% from the prior year o Property-Liability premiums earned increased by 12.9% over the prior year quarter driven by 12.1% increase in policies in force o Net inve
Slide 6: Transformative Growth Implementation Progressing
Transformative Growth Implementation Progressing • Transformative Growth is a multi-year initiative to build a low-cost digital insurer with broad distribution o Expand customer access o Improve customer value o Increase sophistication and investment in customer acquisition o Deploy new technology e
Slide 7: Transforming Distribution Platform
Transforming Distribution Platform • Multi-faceted longitudinal plan to grow Property-Liability market share o Transition Allstate agents to higher growth and lower cost models o Expand Allstate branded direct sales with lower pricing and enhanced capabilities o Enhance independent agent distributio
Slide 8: Multi-faceted Approach to Grow Personal Property-Liability Market Share
Multi-faceted Approach to Grow Personal Property-Liability Market Share • Property-Liability policies in force grew by 12.1% compared to prior year driven by the National General acquisition and expanding direct capabilities • Personal auto new issued applications increased 61% driven by both Allsta
Slide 9: Property-Liability Margins Remain Strong
Property-Liability Margins Remain Strong • Recorded combined ratio of 95.7 increased 5.9 points compared to the prior year quarter and generated underwriting income of $429 million o Higher underlying losses primarily driven by higher auto accident frequency o Loss ratio increase was partially offse
Slide 10: Auto Insurance Profitability Remains Favorable to Pre-Pandemic Levels
Auto Insurance Profitability Remains Favorable to Pre-Pandemic Levels • Protection auto underlying combined ratio of 91.8 in the second quarter remains below historical levels • Auto accident frequency continues to trend below pre-pandemic levels o Allstate brand auto property damage frequency in th
Slide 11: Proactive Portfolio Management Optimizes Risk and Return
Proactive Portfolio Management Optimizes Risk and Return to Deliver Attractive Long-Term Results • Net investment income $754 million above prior year quarter, reflecting higher performance-based income • Total return on portfolio was 2.6% in second quarter and 6.8% over last twelve months • The mar
Slide 12: Protection Services Continues High Growth and Profit Trajectory
Protection Services Continues High Growth and Profit Trajectory • Revenues(1) of $581 million increased 27.1% compared to the prior year quarter o Allstate Protection Plans revenues of $295 million increased 27.2% compared to the prior year quarter o Arity increased due to integration of LeadCloud a
Slide 13: Allstate Generates Attractive Returns
Allstate Generates Attractive Returns • Allstate continues to generate strong returns and provide significant cash to shareholders while investing in growth o Adjusted net income return on equity* of 23.8% for the last 12 months o Returned $807 million to common shareholders in the second quarter of
Slide 14: Accelerating Growth to Improve Valuation
Accelerating Growth to Improve Valuation • Allstate has delivered superior financial performance relative to peers and the broader market • Committed to accelerating growth with attractive financial returns Financial Metrics - Allstate vs. Industry (5 years) Allstate Rank vs. 10 Percentile vs. Valua
Slide 15: Allstate Focuses on Execution, Innovation and Long-Term Value Creation
Allstate Focuses on Execution, Innovation and Long-Term Value Creation Customers • Broad protection solutions (auto, home, products, identity) 180+ Million Policies in Force Execution Financial Results • Industry-leading insurance margins • Attractive risk-adjusted investment returns 15.6% ROE* Aver
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Slide 17: 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
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