Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q3 2019 Earnings Presentation
44 slides from Allstate Corporation (the)'s earnings presentation, Oct 29, 2019
Slide 1: Investor Supplement Third Quarter 2019
The Allstate Corporation Investor Supplement Third Quarter 2019 The consolidated financial statements and financial exhibits includedherein are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto i
Slide 2: Table of Contents
The Allstate Corporation Investor Supplement - Third Quarter 2019 Table of Contents Consolidated Operations Allstate Life Condensed Consolidated Statements of Operations 1 Segment Results and Other Statistics 27 Contribution to Income 2 Return on Equity 28 Segment Results 3,4 Condensed Consolidated
Slide 3: Condensed Consolidated Statements of Operations
The Allstate Corporation Condensed Consolidated Statements of Operations ($ in millions, except per share data) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 ;jh 2019 2018 Revenues Property and casualty
Slide 4: Contribution to Income
The Allstate Corporation Contribution to Income ($ in millions, except per share data) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Contribution to income Net income (loss) app
Slide 5: Consolidating Segment Results (Three months ended September 30, 2019)
The Allstate Corporation Consolidating Segment Results Allstate Discontinued Property- Service Allstate Allstate Allstate Corporate Intersegment ($ in millions) Protection Lines Liability Businesses Life Benefits Annuities and Other Eliminations Consolidated Three months ended September 30, 2019 Pre
Slide 6: Consolidating Segment Results (Nine months ended September 30, 2019)
The Allstate Corporation Consolidating Segment Results Allstate Discontinued Property- Service Allstate Allstate Allstate Corporate Intersegment ($ in millions) Protection Lines Liability Businesses Life Benefits Annuities and Other Eliminations Consolidated Nine months ended September 30, 2019 Prem
Slide 7: Condensed Consolidated Statements of Financial Position
The Allstate Corporation Condensed Consolidated Statements of Financial Position ($ in millions) Sept. 30, 2019 June 30, 2019 March 31, 2019 Dec. 31, 2018 Sept. 30, 2018 Assets Investments Fixed income securities, at fair value (1) $ 59,259 $ 58,484 $ 58,202 $ 57,170 $ 57,663 Equity securities, at f
Slide 8: Book Value per Common Share
The Allstate Corporation Book Value per Common Share ($ in millions, except per share data) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2018 2018 2018 2018 Book value per common share Numerator: Common shareholders' equity (1) $ 23,088 $ 22,546 $ 21,488 $ 19,382
Slide 9: Return on Common Shareholders' Equity
The Allstate Corporation Return on Common Shareholders' Equity ($ in millions) Twelve months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2018 2018 2018 2018 Return on Common Shareholders' Equity Numerator: Net income applicable to common shareholders (1)(2
Slide 10: Debt to Capital
The Allstate Corporation Debt to Capital Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, ($ in millions) 2019 2019 2019 2018 2018 2018 2018 Debt Short-term debt $ - $ - $ - $ - $ - $ - $ - Long-term debt 6,630 6,628 6,453 6,451 6,450 6,448 6,847 Total debt $ 6,630 $ 6,628 $ 6,453
Slide 11: Policies in Force and Other Statistics
The Allstate Corporation Policies in Force and Other Statistics Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2018 2018 2018 2018 Policies in Force statistics (in thousands) (1) Allstate Protection Allstate brand Auto 20,339 20,301 20,145 20,104 19,912 19,810 19,6
Slide 12: Premiums Written for Allstate Protection and Service Businesses
The Allstate Corporation Premiums Written for Allstate Protection and Service Businesses . ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Allstate Protection Alls
Slide 13: Catastrophe Losses
The Allstate Corporation Catastrophe Losses ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Allstate Protection Allstate brand Auto $ 130 $ 179 $ 68 $ 53 $ 113 $ 1
Slide 14: Property-Liability Results
The Allstate Corporation Property-Liability Results ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Premiums written $ 9,312 $ 9,043 $ 8,327 $ 8,370 $ 8,800 $ 8,54
Slide 15: Property-Liability Prior Year Reserve Reestimates
The Allstate Corporation Property-Liability Prior Year Reserve Reestimates ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Prior Year Reserve Reestimates (1) Allst
Slide 16: Property-Liability Catastrophe Losses included in Prior Year Reserve Reestimates
The Allstate Corporation Property-Liability Catastrophe Losses included in Prior Year Reserve Reestimates ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Allstate
Slide 17: Allstate Protection Impact of Net Rate Changes Approved on Premiums Written
The Allstate Corporation Allstate Protection Impact of Net Rate Changes Approved on Premiums Written Three months ended Three months ended Three months ended September 30, 2019 (1) June 30, 2019 March 31, 2019 Number of Location Number of Location Number of Location locations (5) Total brand (%) (6)
Slide 18: Allstate Brand Profitability Measures
The Allstate Corporation Allstate Brand Profitability Measures ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 8,472 $ 8,262 $ 7,544 $ 7,646
Slide 19: Allstate Brand Statistics
The Allstate Corporation Allstate Brand Statistics (1) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 New Issued Applications (in thousands) (2) Auto 753 755 740 710 755 754 714
Slide 20: Esurance Brand Profitability Measures and Statistics
The Allstate Corporation Esurance Brand Profitability Measures and Statistics ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 562 $ 503 $ 55
Slide 21: Encompass Brand Profitability Measures and Statistics
The Allstate Corporation Encompass Brand Profitability Measures and Statistics ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 278 $ 278 $ 2
Slide 22: Auto Profitability Measures by Brand
The Allstate Corporation Auto Profitability Measures by Brand ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Allstate brand auto Net premiums written $ 5,599 $ 5,
Slide 23: Homeowners Profitability Measures by Brand
The Allstate Corporation Homeowners Profitability Measures by Brand ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Allstate brand homeowners Net premiums written
Slide 24: Other Personal Lines Profitability Measures by Brand
The Allstate Corporation Other Personal Lines Profitability Measures by Brand (1) ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Allstate brand other personal lin
Slide 25: Commercial Lines Profitability Measures
The Allstate Corporation Commercial Lines Profitability Measures (1)(2) ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 238 $ 236 $ 185 $ 17
Slide 26: Discontinued Lines and Coverages Reserves
The Allstate Corporation Discontinued Lines and Coverages Reserves ($ in millions) Three months ended Twelve months ended December 31, Sept. 30, June 30, March 31, (net of reinsurance) 2019 2019 2019 2018 2017 2016 2015 2014 Asbestos Beginning reserves $ 826 $ 847 $ 866 $ 884 $ 912 $ 960 $ 1,014 $ 1
Slide 27: Service Businesses Segment Results
The Allstate Corporation Service Businesses Segment Results (1) ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Service Businesses Net premiums written $ 364 $ 350
Slide 28: Allstate Protection Plans Results
The Allstate Corporation Allstate Protection Plans Results As of or for the ($ in millions) As of or for the three months ended nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $
Slide 29: Allstate Life Segment Results and Other Statistics
The Allstate Corporation Allstate Life Segment Results and Other Statistics As of or for the ($ in millions) As of or for the three months ended nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Premi
Slide 30: Allstate Life Return on Equity
The Allstate Corporation Allstate Life Return on Equity ($ in millions) Twelve months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2018 2018 2018 2018 Return on Equity Numerator: Net income applicable to common shareholders (1)(2) $ 237 $ 252 $ 260 $ 260 $
Slide 31: Allstate Benefits Segment Results and Other Statistics
The Allstate Corporation Allstate Benefits Segment Results and Other Statistics As of or for the ($ in millions) As of or for the three months ended nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 P
Slide 32: Allstate Benefits Return on Equity
The Allstate Corporation Allstate Benefits Return on Equity ($ in millions) Twelve months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2018 2018 2018 2018 Return on Equity Numerator: Net income applicable to common shareholders (1)(2) $ 126 $ 128 $ 125 $ 11
Slide 33: Allstate Annuities Segment Results and Other Statistics
The Allstate Corporation Allstate Annuities Segment Results and Other Statistics As of or for the ($ in millions) As of or for the three months ended nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018
Slide 34: Allstate Annuities Return on Equity
The Allstate Corporation Allstate Annuities Return on Equity ($ in millions) Twelve months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2018 2018 2018 2018 Return on Equity Numerator: Net income applicable to common shareholders (1)(2) $ 94 $ 194 $ 156 $ 76
Slide 35: Corporate and Other Segment Results
The Allstate Corporation Corporate and Other Segment Results ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Net investment income $ 21 $ 19 $ 12 $ 15 $ 20 $ 23 $
Slide 36: Investment Position
The Allstate Corporation Investment Position Sept. 30, June 30, March 31, Dec 31, Sept. 30, June 30, March 31, ($ in millions) 2019 2019 2019 2018 2018 2018 2018 Consolidated Investments Fixed income securities, at fair value: Tax-exempt $ 6,954 $ 6,891 $ 7,132 $ 7,000 $ 7,252 $ 7,396 $ 6,310 Taxabl
Slide 37: Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax)
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Net Investmen
Slide 38: Net Investment Income, Yields and Realized Capital Gains and Losses by Segment
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) by Segment ($ in millions) Three months ended September 30, 2019 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuities Other Total Net Investment I
Slide 39: Net Investment Income, Yields and Realized Capital Gains and Losses by Segment (Nine Months)
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) by Segment ($ in millions) Nine months ended September 30, 2019 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuities Other Total Net Investment In
Slide 40: Investment Position and Results by Strategy and Segment (Three Months)
The Allstate Corporation Investment Position and Results by Strategy and Segment As of or for the three months ended ($ in millions) As of or for the three months ended September 30, 2019 September 30, 2018 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits
Slide 41: Investment Position and Results by Strategy and Segment (Nine Months)
The Allstate Corporation Investment Position and Results by Strategy and Segment As of or for the nine months ended ($ in millions) As of or for the nine months ended September 30, 2019 September 30, 2018 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits A
Slide 42: Performance-Based Investments
The Allstate Corporation Performance-Based ("PB") Investments ($ in millions) As of or for the three months ended As of or for the nine months ended Sept. 30, June 30, March 31, Dec 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2019 2019 2019 2018 2018 2018 2018 2019 2018 Investment position
Slide 43: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. A
Slide 44: Definitions of Non-GAAP Measures (continued)
Definitions of Non-GAAP Measures (continued) Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non-catastrophe reserve reestimates on the co