Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q3 2023 Earnings Presentation
22 slides from Allstate Corporation (the)'s earnings presentation, Nov 2, 2023
Slide 1: The Allstate Corporation Third Quarter 2023 Earnings Presentation
The Allstate Corporation Third Quarter 2023 Earnings Presentation 11.02.2023
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 Create Shareholder Value
Allstate’s Strategy To Create Shareholder Value Increase Personal Property-Liability Market Share Third quarter 2023 highlights • Progress on auto insurance profit improvement plan Leveraging Allstate brand, • Pursuing divestiture of Health and Benefits customer base and capabilities businesses • Ad
Slide 4: Allstate Remains Focused on Improving Profitability
Allstate Remains Focused on Improving Profitability Revenues increased 9.8%, or $1.3 billion, due to higher Property- Liability earned premiums from 2022 and 2023 rate increases Three months ended Nine months ended September 30, September 30, ($ in millions, except per share data and ratios) 2023 20
Slide 5: 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 9.5% through first nine months of 2023 Rate • Pursuing rate actions • National General implemented rate increases o
Slide 6: Allstate's Industry-Leading Returns in Auto Insurance
Allstate’s Industry-Leading Returns in Auto Insurance Allstate’s capabilities and business model have resulted in an auto insurance combined ratio of ~96.5 over the last 10 years (2013-2022)(1) • Generated average underwriting income of ~$800 million annually from 2013-2022(1) • Allstate auto insura
Slide 7: Pursuing Health and Benefits Divestiture
Pursuing Health and Benefits Divestiture Rationale • Combining Allstate and National General businesses was integral to National General acquisition plan. Successful integration positions business for additional growth • Divestiture is being pursued since substantial value can be realized when align
Slide 8: Transformative Growth Implementation Progressing
Transformative Growth Implementation Progressing Multi-year initiative to build a low-cost digital insurer with broad distribution • Improve customer value with affordable, simple and connected protection • Expand customer access through exclusive agents, independent agents and direct channel • Incr
Slide 9: Property-Liability Earned Premium Increases and Expense Reductions Improve Margins
Property-Liability Earned Premium Increases and Expense Reductions Improve Margins Earned premium increase driven by higher auto and Unfavorable prior year reserve reestimates of $166 million, with $84 million homeowners rates, partially offset by a decline in related to Allstate Protection, driven
Slide 10: Auto Insurance Premium Growth Outpacing Underlying Costs
Auto Insurance Premium Growth Outpacing Underlying Costs Underlying combined ratio sequentially improving, driven by higher 3 large states generating underwriting losses added average premium and expense efficiencies along with lower estimated approximately 5 points to the 2023 YTD underlying Allsta
Slide 11: Significant Auto Insurance Rate Increases and Underwriting Actions Impacting Growth
Significant Auto Insurance Rate Increases and Underwriting Actions Impacting Growth Implemented Allstate brand auto rates of 26.4% over New issued applications decline due to reduced marketing and the last 21 months to combat rising loss costs business practice adjustments in states with ongoing rat
Slide 12: National General Auto Insurance Profitably Growing Non-Standard
National General Auto Insurance Profitably Growing Non-Standard; Implementing Further Margin Actions in Legacy Preferred Brands Third quarter margins impacted by $95 million (6.6 points on the combined ratio) of unfavorable non-catastrophe prior year reserve reestimates, primarily across liability c
Slide 13: Homeowners Insurance Impacted by Elevated Catastrophe Losses
Homeowners Insurance Impacted by Elevated Catastrophe Losses Net written premium growth of 12.1% in the third quarter driven by higher average premium and increase in policies in force Allstate brand homeowners average premium and Allstate Protection homeowners operating statistics policies in force
Slide 14: Transformative Growth Building Momentum Across Distribution Channels
Transformative Growth Building Momentum Across Distribution Channels Auto New (1) Channel Total Addressable Market Business (3) Enhancing Capabilities • Lowering cost of providing a local agent • Modified compensation structure to incentivize growth and bundling • Bundling at point of sale reaching
Slide 15: Net Investment Income Benefits from Higher Reinvestment Yields
Net Investment Income Benefits from Higher Reinvestment Yields Increased Market-based income reflects extension of Shortened fixed income duration in Extending duration to capture duration, reduction of public equities and higher yields anticipation of higher interest rates higher yields Net investm
Slide 16: Performance-based Portfolio Provides a Diversifying Source of Higher Long-Term Returns
Performance-based Portfolio Provides a Diversifying Source of Higher Long-Term Returns Quarterly Performance-based GAAP total returns (“GTR”) Longer term Performance-based have ranged from -2.3% to 8.6% over the past 5 years while (“PB”) returns compare favorably to trailing 3-year annualized return
Slide 17: Protection Services Revenue Growing While Investing in Future Expansion
Protection Services Revenue Growing While Investing in Future Expansion Allstate Protection Plans revenues increased 19.2% compared to the prior year quarter, reflecting expanded products and international growth Protection Services revenues(1) Protection Services results ($ in millions) $671 $686 $
Slide 18: Health and Benefits Businesses Generating Profitable Growth
Health and Benefits Businesses Generating Profitable Growth Increase compared to the prior year quarter driven by Increased adjusted net income due to higher Group Health and growth in group health along with fees and other revenue Individual Health, partially offset by lower Employer Voluntary Bene
Slide 19: 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’s economic capital model quantifies enterprise risk to Proactive capital management informed by the economic impact define target capital of risk and return trade offs • Economic capital model contemplate
Slide 20: Allstate Is An Attractive Investment; Strategy Supports Value Creation
Allstate Is An Attractive Investment; Strategy Supports Value Creation Increase Personal Property-Liability Market Share Strategic Priorities • Return auto insurance profitability to targeted levels • Pursuing divestiture of Health and Benefits businesses Leveraging Allstate brand, • Advancing Trans
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Slide 22: 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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