Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q1 2022 Earnings Presentation
19 slides from Allstate Corporation (the)'s earnings presentation, May 5, 2022
Slide 1: The Allstate Corporation First Quarter 2022 Earnings Presentation
The Allstate Corporation First Quarter 2022 Earnings Presentation 05.05.2022
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 Deliver Transformative Growth and Higher Valuation
Allstate’s Strategy to Deliver Transformative Growth and Higher Valuation Increase Personal Property-Liability market share First quarter 2022 highlights • Multifaceted plan to address inflation o Raise prices o Reduce expenses / manage Leveraging Allstate brand, loss costs customer base and capabil
Slide 4: Allstate's Execution and Adaptability Create Shareholder Value
Allstate’s Execution and Adaptability Create Shareholder Value Insurance premiums increased due to growth in Allstate brand and National General Three months ended March 31 ($ in millions, except per share data and ratios) 2022 2021 Change Total revenues $12,337 $12,451 (0.9%) Property-Liability ins
Slide 5: Strength in Homeowners Insurance and Investments Mitigates Inflationary Impact on Auto Insurance
Strength in Homeowners Insurance and Investments Mitigates Inflationary Impact on Auto Insurance Contribution to first quarter 2022 adjusted net income* ($ in millions) Q1 2022 Per share Industry-leading margins and lower Insurance underwriting income (loss)(1) $267 $0.95 catastrophe losses - Auto i
Slide 6: Auto Insurance Margins Impacted by Rising Loss Costs
Auto Insurance Margins Impacted by Rising Loss Costs Track record of success achieving Favorable short-term impact Increased auto accident frequency targeted mid-90’s auto insurance of pandemic in 2020 and first and rapid severity escalation combined ratio quarter of 2021 beginning in mid-2021 Allst
Slide 7: Auto Physical Damage Claim Severity Increases Are Widespread
Auto Physical Damage Claim Severity Increases Are Widespread Leveraging national scale and strategic Allstate has a higher distribution of partnerships with repair facilities and parts newer, more expensive vehicles suppliers to lower costs and control quality compared to the industry Auto property
Slide 8: Auto Bodily Injury Claim Severity Impacted by More Severe Injuries, Inflation and Attorney Involvement
Auto Bodily Injury Claim Severity Impacted by More Severe Injuries, Inflation and Increased Attorney Involvement Harder hit accidents leading to an increase in Trial attorney advertising for claimants severe injury claims; predictive modeling to has doubled over the past decade to determine likeliho
Slide 9: Increasing Auto Insurance Prices to Support Mid-90s Target Combined Ratio
Increasing Auto Insurance Prices to Support Mid-90s Target Combined Ratio Need to offset Q1 2021 Annualized Allstate brand Minor impact on Q1 2022 reductions taken in response rate increases of $1.6 billion which increases rapidly to decrease in frequency since start of Q4 2021 during the year Allst
Slide 10: Homeowners Insurance Generates Attractive Returns and Growth Potential
Homeowners Insurance Generates Attractive Returns and Growth Potential Allstate brand generated $3.3 billion of Increased due to inflation in insured home underwriting income from 2017 – 2021, with valuations and implemented rate increases the industry generating an underwriting loss to offset impac
Slide 11: Improving Customer Value Through Cost Reductions
Improving Customer Value Through Cost Reductions On-pace and committed to long-term objective to reduce adjusted expense ratio* to approximately 23.0 by year end 2024(1) Reflects higher Property-Liability adjusted expense ratio* employee-related costs, including claims and call center hiring 29.2 27
Slide 12: 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 • Expand customer access • Increase sophistication and investment in customer acquisition • Deploy new technology eco
Slide 13: Expanding Customer Access Meets Customer Demand
Expanding Customer Access Meets Customer Demand Allstate distribution of auto new issued applications by channel more closely mirrors industry due to Transformative Growth and acquisition of National General Auto insurance - % distribution by primary sales channel Independent agent channel growth wi
Slide 14: Protection Services Generates Profitable Growth
Protection Services Generates Profitable Growth Allstate Protection Plans revenues Adjusted net of $329 million increased 19.6% income was $179 compared to the prior year quarter million in 2021 Protection Services revenues(1) Protection Services results ($ in millions) $627 ($ in millions) $597 $60
Slide 15: Allstate Health and Benefits Growth Through Expanded Product Offering
Allstate Health and Benefits Growth Through Expanded Product Offering Breadth and size of the Decreased $12 million from prior year business expanded with the quarter, primarily driven by increases in National General acquisition individual and group health claims Health and Benefits revenues(1) Hea
Slide 16: Recent Fixed Income Duration Shortening Reduced Impact of Higher Interest Rates on Portfolio Valuation
Recent Fixed Income Duration Shortening Reduced Impact of Higher Interest Rates on Portfolio Valuation Performance-based portfolio had Shortening of duration beginning in late 2021 annualized yields of 24.8% in mitigated the negative impact of higher interest rates 2021 and 14.1% in Q1 2022 by $0.8
Slide 17: Strong Cash Returns to Shareholders
Strong Cash Returns to Shareholders Reduction primarily due to lower auto insurance underwriting income Capital position 3/31/2021 3/31/2022 Inc / (Dec) Adjusted net income return on equity* 23.2% 12.8% (10.4) pts Common shares outstanding (in millions) 300.1 275.7 (8.1%) Quarterly common shareholde
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Slide 19: 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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