Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q3 2021 Earnings Presentation
17 slides from Allstate Corporation (the)'s earnings presentation, Nov 4, 2021
Slide 1: The Allstate Corporation Third Quarter 2021 Earnings Presentation
The Allstate Corporation Third Quarter 2021 Earnings Presentation 11 . 0 4 . 2 0 2 1 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 Increases Shareholder Value
Allstate’s Strategy Increases Shareholder Value Third Quarter 2021 Highlights Increase Personal Property-Liability Market Share Execution Customers • Increased Property-Liability policies in force 12.5% compared to prior year • Rapid growth of Protection Plans through expanded network of products an
Slide 4: Allstate Addresses Impact of Supply Chain Disruptions
Allstate Addresses Impact of Supply Chain Disruptions • Total revenues of $12.5 billion in the third quarter increased 16.9% from the prior year o Property-Liability premiums earned increased by 13.5% over the prior year quarter, primarily due to the acquisition of National General o Net investment
Slide 5: Pandemic Has Created Volatility Requiring Rapid Adaptation
Pandemic Has Created Volatility Requiring Rapid Adaptation 2020 2021 • Economic lockdowns • Economic reopening • Fewer miles driven • Increased miles driven External Environment • Economic stimulus – fiscal and • Less economic stimulus monetary • Supply chain disruptions Auto Insurance Accident Freq
Slide 6: Property-Liability Combined Ratio Increased Due to Rising Loss Costs
Property-Liability Combined Ratio Increased Due to Rising Loss Costs • Recorded combined ratio of 105.3 increased 13.7 points compared to the prior year quarter driven by higher underlying auto and home losses as well as higher catastrophe losses o Underlying loss cost increases primarily driven by
Slide 7: Auto Insurance Profitability Impacted by Increased Repair Costs
Auto Insurance Profitability Impacted by Increased Repair Costs • Allstate brand auto underlying combined ratio* of 97.5 in the third quarter and 89.7 through first nine months of 2021 • Auto accident frequency continues to trend below pre-pandemic levels o Allstate brand auto property damage freque
Slide 8: Implementing Rate Increases to Improve Auto Profitability
Implementing Rate Increases to Improve Auto Profitability • Allstate’s sustained industry-leading auto insurance margins demonstrate strong execution and expertise o Historical combined ratio operating range in mid-90s generates attractive returns on capital Auto Insurance Combined Ratios(1) 110 (%
Slide 9: Committed to Further Cost Reductions
Committed to Further Cost Reductions • Expect to achieve approximately 6.0 points of adjusted expense ratio* improvement between underwriting and claims expenses from 2018 – 2024 o Achieved approximately half the savings through actions to date o Long-term objective to reduce adjusted expense ratio*
Slide 10: Transformative Growth Creates Self-Sustaining Flywheel of Growth
Transformative Growth Creates Self-Sustaining Flywheel of Growth • Transformative Growth is a multi-year initiative to increase personal property-liability market share by building a low-cost digital insurer with broad distribution o Improve customer value o Expand customer access o Increase sophist
Slide 11: Customer-Focused Distribution Strategy
Customer-Focused Distribution Strategy • Property-Liability policies in force grew by 12.5% compared to prior year driven by the National General acquisition • Personal auto new issued applications increased 61% driven by both Allstate and National General branded business o Existing Allstate agents
Slide 12: Protection Services Continues High Growth and Profit Trajectory
Protection Services Continues High Growth and Profit Trajectory • Revenues(1) of $597 million increased 23.3% compared to the prior year quarter o Allstate Protection Plans revenues of $311 million increased 23.9% compared to the prior year quarter o Arity increased due to integration of LeadCloud a
Slide 13: Proactive Portfolio Management Optimizes Risk and Return
Proactive Portfolio Management Optimizes Risk and Return to Deliver Attractive Long-Term Results • Net investment income $300 million above prior year, reflecting higher performance-based income • Performance-based results represent a long-term and broad approach to growth investing o Nearly 90% of
Slide 14: Strong Capital Position and Cash Returns to Shareholders
Strong Capital Position and Cash Returns to Shareholders • Allstate’s strong capital position enables significant cash returns to shareholders while investing in growth o Returned $1.5 billion to common shareholders in the third quarter of 2021 through $1.2 billion in share repurchases and $242 mill
Slide 15: Allstate Has Delivered Strong Results by Adapting and Creating Change
Allstate Has Delivered Strong Results by Adapting and Creating Change Customers • Affordable, simple and connected protection solutions o Increase Property-Liability market share by 1% in 2021 192 Million Policies in Force o Substantial expansion of Protection Services • Industry-leading insurance m
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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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