Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q4 2023 Earnings Presentation
18 slides from Allstate Corporation (the)'s earnings presentation, Feb 8, 2024
Slide 1: The Allstate Corporation Fourth Quarter 2023 Earnings Presentation
The Allstate Corporation Fourth Quarter 2023 Earnings Presentation 02.08.2024
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 Fourth quarter 2023 highlights • Net income of $1.5 billion in the fourth quarter driven by: o Improved auto insurance profitability o Mild weather conditions favorably impact catastrophe losses and non
Slide 4: Allstate Profit Improvement Actions and Mild Weather Benefit Results
Allstate Profit Improvement Actions and Mild Weather Benefit Results Property-Liability premiums increased 10.7%, or $1.22 billion, due to 2022 and 2023 rate increases Three months ended Twelve months ended December 31, December 31, ($ in millions, except per share data and ratios) 2023 2022 Change
Slide 5: Executing Comprehensive Approach to Restore Auto Margins
Executing Comprehensive Approach to Restore Auto Margins Auto insurance profit improvement plan: 2023 Progress: 2024 Outlook: • Allstate brand implemented rate increases of 16.9% in 2022 and 16.4% • Pursuing rate increases to improve • Pursuing rate actions Rate in 2023, including 6.9% in fourth qua
Slide 6: Property-Liability Earned Premium Increases, Expense Reductions and Lower Catastrophe Losses Improve Margins
Property-Liability Earned Premium Increases, Expense Reductions and Lower Catastrophe Losses Improve Margins Lower catastrophe Earned Premium increase driven by higher auto and losses due to mild weather homeowners rates, partially offset by a decline in conditions in the quarter policies in force P
Slide 7: Auto Insurance Premium Growth Outpacing Underlying Costs
Auto Insurance Premium Growth Outpacing Underlying Costs Underlying combined ratio sequentially improved each quarter in 2023 driven by higher average premium and expense efficiencies exceeding moderating, yet elevated, underlying loss costs per policy Allstate Protection auto underlying combined ra
Slide 8: Auto Insurance Underlying Profitability Increasingly Attractive in More States
Auto Insurance Underlying Profitability Increasingly Attractive in More States Implemented Allstate brand auto rates of 33.3% over the last 2 3 large states generating underwriting losses added years to combat rising loss costs approximately 5 points to the 2023 underlying combined ratio Allstate br
Slide 9: Significant Auto Insurance Rate Increases and Underwriting Actions Impacting Growth
Significant Auto Insurance Rate Increases and Underwriting Actions Impacting Growth Policies in force below prior year due to Allstate brand profit 6% decrease in 2023 reflecting business practice improvement actions, partially offset by National General growth adjustments in underperforming states
Slide 10: Homeowners Insurance Generates Significant Profits in the Fourth Quarter
Homeowners Insurance Generates Significant Profits in the Fourth Quarter; Full Year Impacted by Elevated Catastrophe Losses Net written premium growth of 13.3% in the fourth Fourth quarter underwriting income of $1.2 billion driven quarter driven by higher average premium and by higher earned premiu
Slide 11: Transformative Growth Implementation Advancing
Transformative Growth Implementation Advancing Multi-year initiative to build a low-cost digital insurer with broad distribution • Lowering cost structure to improve competitive price position • Redesigning products and leveraging telematics to create competitively differentiated offerings Improve C
Slide 12: Expense Reduction Remains a Key Component of Transformative Growth Strategy
Expense Reduction Remains a Key Component of Transformative Growth Strategy Reduction reflects higher earned premium growth relative to Continued progress towards target of ~6 points of fixed costs and lower employee–related costs improvement from 2018 –2024 Property-Liability underwriting expense r
Slide 13: Investment Return Benefits from Duration Extension
Investment Return Benefits from Duration Extension Shortened fixed income duration in Extended duration to capture Increased Market-based income reflects higher yields, anticipation of higher interest rates higher yields increased fixed income balances and duration extension Fixed income duration an
Slide 14: Protection Services Revenue Growing while Investing in Future Expansion
Protection Services Revenue Growing while Investing in Future Expansion Allstate Protection Plans revenues increased 19.6% compared to the prior year quarter, reflecting expanded products and international growth Protection Services revenues(1) Protection Services results ($ in millions) ($ in milli
Slide 15: Health and Benefits Businesses Generating Profitable Growth
Health and Benefits Businesses Generating Profitable Growth Adjusted net income increased $2 million Increase compared to the prior year quarter driven by growth in compared to prior year quarter driven by Individual Individual Health, fees and other revenue and Group Health Health, partially offset
Slide 16: Allstate's Financial Condition and Capital Position Remain Strong
Allstate’s Financial Condition and Capital Position Remain Strong Allstate remains well capitalized with estimated statutory surplus and holding company assets of $18.0 billion, increasing by $1.6 billion compared to the prior quarter Capital Position (in billions) 12/31/2023 Statutory Surplus(1) $1
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Slide 18: 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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