Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q2 2023 Earnings Presentation
15 slides from Allstate Corporation (the)'s earnings presentation, Aug 2, 2023
Slide 1: The Allstate Corporation Second Quarter 2023 Earnings Presentation
The Allstate Corporation Second Quarter 2023 Earnings Presentation 08.02.2023
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 Second quarter 2023 highlights Increase Personal Property-Liability Market Share • Successfully implementing comprehensive plan to improve auto insurance profitability by: o Raising rates o Reducing expenses o Limiting growth o Enhancing claims proce
Slide 4: Allstate Remains Focused on Improving Profitability
Allstate Remains Focused on Improving Profitability Revenues increased $1.76 billion primarily due to higher Property- Liability earned premiums from 2022 and 2023 rate increases Three months ended June 30, Six months ended June 30, ($ in millions, except per share data and ratios) 2023 2022 Change
Slide 5: Property-Liability Earned Premium Increases Offset by Elevated Catastrophe Losses
Property-Liability Earned Premium Increases Offset by Elevated Catastrophe Losses and Underlying Loss Cost Increases Higher earned premium driven by auto and homeowners rate Underwriting loss primarily driven by elevated increases, partially offset by a decline in policies in force catastrophe losse
Slide 6: Auto Insurance Premium Growth Beginning to Outpace Underlying Costs
Auto Insurance Premium Growth Beginning to Outpace Underlying Costs Underlying combined ratio slightly better in 2023 compared to Increases in average earned premium from implemented rate 2022(1), driven by higher average premium and expense reductions increases are outpacing underlying loss and exp
Slide 7: Executing Comprehensive Approach to Restore Auto Margins
Executing Comprehensive Approach to Restore Auto Margins Auto insurance profit improvement will be driven by: Progress: • Allstate brand implemented rate increases of 16.9% in 2022, and 7.5% through first six months of 2023, including 5.8% in • Pursuing rate actions the second quarter Rate Increases
Slide 8: Targeted Underwriting Actions Lowering Auto Insurance Growth in Unprofitable States
Targeted Underwriting Actions Lowering Auto Insurance Growth in Unprofitable States Aggressively pursuing rate increases in 3 large states that generated 45% of Allstate brand auto underwriting loss in 2022 Allstate brand auto new issued applications - % Allstate brand auto implemented rate variance
Slide 9: Continued Progress on Expense Reduction
Continued Progress on Expense Reduction Reduction of advertising given lower Reduction driven by higher earned premium growth relative to growth appetite fixed costs and lower distribution and employee–related costs Property-Liability underwriting expense ratio Property-Liability adjusted expense ra
Slide 10: Homeowners Insurance Impacted by Elevated Catastrophe Losses
Homeowners Insurance Impacted by Elevated Catastrophe Losses Net written premium growth of 12.4% in the second quarter Catastrophe loss ratio at highest level since 2011 and second primarily driven by higher average premium from rate highest in 15 years; 2023 experience between 1 and 2 standard incr
Slide 11: Protection Services and Health and Benefits Businesses Are Growing
Protection Services and Health and Benefits Businesses Are Growing Allstate Protection Plans revenues increased Increase compared to the prior year quarter driven by growth in group 18% compared to the prior year quarter health offsetting lower individual health and employer voluntary benefits Prote
Slide 12: Net Investment Income Benefits from Higher Reinvestment Yields
Net Investment Income Benefits from Higher Reinvestment Yields with Performance-based Income Below Prior Year Fixed income earned yield increased from 2.8% in Increased Market-based income reflects second quarter 2022 to 3.6% in 2023. Duration higher yields and portfolio repositioning extension lock
Slide 13: Capital Position Is Sound, Proactively Managed By Balancing Enterprise Risk and Return
Capital Position Is Sound, Proactively Managed By Balancing Enterprise Risk and Return Allstate remains well capitalized with estimated History of profit demonstrates ability to statutory surplus of $13.6 billion and holding company generate capital as results improve assets of $3.3 billion Statutor
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Slide 15: 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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