Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q2 2022 Earnings Presentation
17 slides from Allstate Corporation (the)'s earnings presentation, Aug 4, 2022
Slide 1: The Allstate Corporation Second Quarter 2022 Earnings Presentation
The Allstate Corporation Second Quarter 2022 Earnings Presentation 08.04.2022
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Statements and Non-GAAP Financial Information This presentation contains forward-looking statements Additional information on factors that could cause results and information. This presentation also contains non- to differ materially from this presentation is available in the GAAP me
Slide 3: Allstate's Strategy To Increase Shareholder Value
Allstate’s Strategy To Increase Shareholder Value Increase Personal Second quarter 2022 highlights Property-Liability Market Share • Executing comprehensive plan to improve profitability o Broadly raising auto and home insurance rates o Reducing expenses, advertising and growth investments o Impleme
Slide 4: Allstate Is Focused on Improving Profitability
Allstate Is Focused on Improving Profitability Increased Property-Liability earned premiums driven by higher average premium and growth in policies in force Three months ended June 30, Six months ended June 30, ($ in millions, except per share data and ratios) 2022 2021 Change 2022 2021 Change Total
Slide 5: Underwriting Margins Impacted by Higher Loss Costs
Underwriting Margins Impacted by Higher Loss Costs Underlying margin pressure driven by rapid Impact of rising severities outpacing severity escalation beginning in 2021 implemented rate increases Property-Liability recorded and underlying combined ratio* Property-Liability combined ratio drivers 10
Slide 6: Auto Insurance Continues to Be Impacted by Rising Loss Costs
Auto Insurance Continues to Be Impacted by Rising Loss Costs Prior year non-catastrophe reserve strengthening of $275 million for physical damage and bodily injury coverages 2022 report year incurred severity(2) for collision, property damage and bodily injury coverages are 16%, 12% and 9% higher th
Slide 7: Physical Damage Loss Development Significantly Higher than Historical Trends
Physical Damage Loss Development Significantly Higher than Historical Trends Higher used car values, parts prices Expected to pay out ~$1.25 billion in losses during the first and labor rates increase auto claim 6 months of 2022 for claims reported in 2021; ~40% higher severities than prior four yea
Slide 8: Implementing Significant Auto Insurance Rate Increases
Implementing Significant Auto Insurance Rate Increases Implemented rate increases in majority of states during first half of 2022; Allstate brand annualized written premium impact of 6.1% Allstate brand auto implemented rate from Q1 2022 through Q2 2022 Reducing new business in states without approp
Slide 9: Rate Actions to Date Will Improve Auto Insurance Profitability
Rate Actions to Date Will Improve Auto Insurance Profitability; Additional Actions Needed to Offset Future Loss Cost Increases Impact of rate actions already implemented when fully earned(1) will increase annual premiums by approximately $1.7 billion Pursuing larger rate increases in the Allstate Pr
Slide 10: Homeowners Combined Ratio Influenced by Seasonality and Inflation
Homeowners Combined Ratio in Second Quarter Influenced by Seasonality and Inflation; Growth Driven by Higher Average Premiums The second quarter combined ratio has been higher Reflects higher catastrophe losses and unfavorable non- than full year results, primarily due to higher catastrophe prior ye
Slide 11: Transformative Growth Will Improve Personal Property-Liability Market Share
Transformative Growth Will Improve Personal Property-Liability Market Share Multi-year initiative to build a low-cost digital insurer with broad distribution • Improve customer value On-pace and committed to long-term • Expand customer access objective to reduce adjusted expense ratio* • Increase so
Slide 12: Protection Services Revenue Growing While Investing in Future Expansion
Protection Services Revenue Growing While Investing in Future Expansion Allstate Protection Plans revenues of $338 Decrease in Allstate Protection Plans million increased 14.6% compared to the prior adjusted net income reflects investments year quarter in growth Protection Services revenues(1) Prote
Slide 13: Allstate Health and Benefits Growth Through Expanded Protection Offering
Allstate Health and Benefits Growth Through Expanded Protection Offering Breadth and size of the business Increased revenue partially offset expanded with the National General by higher benefit ratio acquisition Health and Benefits revenues(1) Health and Benefits adjusted net income ($ in millions)
Slide 14: Net Investment Income Benefited From Increased Reinvestment Yields
Net Investment Income Benefited From Increased Reinvestment Yields; Proactive Portfolio Management Protected Portfolio Value Performance-based income benefited from diversification as lower Reduced duration to mitigate negative private equity returns were offset by income from real estate and valuat
Slide 15: Strong Cash Returns to Shareholders
Strong Cash Returns to Shareholders Strong cash returns through Achieving our target combined ratios combination of $1,477 million in share will generate returns in our 14-17% repurchases and $466 million in target range common shareholder dividends Capital Position 6/30/2021 6/30/2022 Inc / (Dec) A
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Slide 17: Forward-looking Statements
Forward-looking Statements This presentation contains “forward-looking statements” that anticipate (10) a downgrade in financial strength ratings; results based on our estimates, assumptions and plans that are subject to o Business, Strategy and Operations (11) competition in the industries uncertai
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