Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q1 2023 Earnings Presentation
17 slides from Allstate Corporation (the)'s earnings presentation, May 4, 2023
Slide 1: The Allstate Corporation First Quarter 2023 Earnings Presentation
The Allstate Corporation First Quarter 2023 Earnings Presentation 05.04.2023
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 Increase Personal Property-Liability Market Share First quarter 2023 highlights • Net loss of $346 million o Property-Liability underwriting loss o Strong investment results o Protection Services and Health and Benefits profit Leveraging Allstate bra
Slide 4: Allstate Remains Focused on Improving Profitability
Allstate Remains Focused on Improving Profitability Revenues increased $1.45 billion driven by higher Property- Liability earned premiums from rate increases Three months ended March 31 ($ in millions, except per share data and ratios) 2023 2022 Change Total revenues $13,786 $12,336 11.8% Property-L
Slide 5: Earned Premium Increases Offset by Elevated Catastrophe Losses
Earned Premium Increases Offset by Elevated Catastrophe Losses and Continued Underlying Loss Cost Increases Underlying combined ratio improved relative to 2022, driven primarily by Earned premium increase of 10.8% offset by higher average premium from rate increases and expense reductions increased
Slide 6: Auto Insurance Premium Increases and Expense Reductions Offset Higher Loss Costs
Auto Insurance Premium Increases and Expense Reductions Offset Higher Loss Costs Underlying combined ratio improved relative to 2022, driven by higher average premium from rate increases and expense reductions Loss costs increase due to claim frequency and severity Allstate Protection auto combined
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: • Implemented Allstate brand rate increases of 16.9% in 2022 Rate • Pursuing rate actions and 1.7% in first quarter 2023 Increases • Pricing expertise and sophistication • Pursuing
Slide 8: Targeted Underwriting Actions Lowering Growth in Unprofitable States
Targeted Underwriting Actions Lowering Growth in Unprofitable States Continuing to pursue and make progress implementing rate increases in 3 large states that generated 45% of Allstate brand auto underwriting loss in 2022 State level results – Allstate brand auto Average Implemented Rate(1) Q1 2023
Slide 9: Continued Progress on Expense Reduction
Continued Progress on Expense Reduction Reduction of advertising spend to support Targeting ~6 points of improvement from 2018 – 2024, efforts driving auto insurance profitability reducing adjusted expense ratio* to ~23.0(1) by year-end 2024 Property-Liability underwriting expense ratio Property-Lia
Slide 10: Homeowners Insurance Impacted By Elevated Catastrophe Losses
Homeowners Insurance Impacted By Elevated Catastrophe Losses Homeowners insurance combined ratio ~12.0 points Net written premium growth of 11.1% in the first quarter driven better than industry average from 2017 - 2022 by higher average premium per policy and policies in force Homeowners insurance
Slide 11: Transformative Growth Implementation Progressing
Transformative Growth Implementation Progressing 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 • Modernize technology ecosystem • Drive organizationa
Slide 12: Protection Services and Health and Benefits Businesses are Growing and Adding Shareholder Value
Protection Services and Health and Benefits Businesses are Growing and Adding Shareholder Value Allstate Protection Plans revenues increased Increase compared to the prior year quarter driven by growth in group 17.0% compared to the prior year quarter health and higher other revenue offsetting lower
Slide 13: Portfolio Anchored in High-quality Interest-bearing Investments
Portfolio Anchored in High-quality Interest-bearing Investments Reduced exposure to below investment grade bonds and equity as recession risk increased Investment Portfolio Carrying Value Allocation(1) Investment Allocation Highlights ($ in billions) • $48 billion of investment grade fixed income an
Slide 14: Net Investment Income Benefits from Higher Reinvestment Yields
Net Investment Income Benefits from Higher Reinvestment Yields With Performance-based Income Below Strong Prior Year Fixed income earned yield increased from Increased Market-based income 2.6% in first quarter 2022 to 3.4% in 2023, reflects portfolio repositioning with duration extension Net investm
Slide 15: Allstate's Financial Condition and Capital Position Remain Strong
Allstate’s Financial Condition and Capital Position Remain Strong Liabilities are predictable with Sophisticated economic risk and Statutory surplus and holding company approximately 75% claims reserves return framework is used to assets in excess of target capital and unearned premiums establish ta
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Slide 17: 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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