Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Merger or Acquisition (January 2021)
13 slides from Allstate Corporation (the)'s merger presentation, Jan 27, 2021
Slide 1: Investor Call Presentation: Disposition of Allstate Life Insurance Company
The Allstate Corporation Investor Call Presentation: Disposition of Allstate Life Insurance Company January 27, 2021 ® Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
1 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 mo
Slide 3: Allstate Enters Into Agreement to Sell Allstate Life Insurance Company
2 Allstate Enters Into Agreement to Sell Allstate Life Insurance Company ▪ Allstate has agreed to sell Allstate Life Insurance Company for gross proceeds of $2.8 billion to entities managed by Blackstone ‒ Represents $23 billion, approximately 80%, of Allstate’s total life and annuity reserves ‒ Min
Slide 4: Allstate Annuities Has Lower Returns and Greater Earnings Volatility
3 ▪ Allstate Life has historically provided a steady source of income and capital diversification with limited growth ‒ Life insurance accounted for 36% of assets and GAAP equity and 80% of Life and Annuity (“L&A”) adjusted net income in 2018 and 2019 ‒ Adjusted net income returns on equity* have be
Slide 5: Allstate's Strategy Remains To Increase Market Share in Personal Property-Liability and Expand Protection Offerings
4 ▪ Customers benefit from access to industry leading solutions ‒ Contemporary product designs ‒ Larger risk pools ‒ Lower costs ‒ Enhanced customer value ▪ Allstate successfully distributes non- proprietary products ‒ Non-proprietary premiums and deposits of $2.2 billion in 2020: ▪ Mutual Funds – $
Slide 6: Transaction Represents a Near Culmination of Deploying Capital Out of Investment Spread Businesses
5 Transaction Represents a Near Culmination of Deploying Capital Out of “Investment Spread” Businesses (1) Allstate Life Insurance Company and Allstate Life Insurance Company of New York ▪ Allstate has been exiting the annuity business over the last 15 years ‒ Reinsured variable annuity business in
Slide 7: Redeploying Capital Out of Life and Annuities Businesses is Largely Completed With This Transaction
6 Redeploying Capital Out of Allstate’s Life and Annuities Businesses is Largely Completed With This Transaction ALIC and ALNY Transaction Perimeters Seller Entities to be acquired by Blackstone Subsequent NY Solution The Allstate Corporation Allstate Insurance Company (AIC) Subsidiaries Included in
Slide 8: Summary of Transaction Terms
7 Summary of Transaction Terms Key Transaction Terms (ALIC excl. ALNY) Transaction Overview ▪ An investment vehicle managed by Blackstone will acquire ALIC, AAC and certain ALIC subsidiaries from Allstate Insurance Company Purchase Price ▪ $2.8 billion in cash, including up to $0.4 billion pre-closi
Slide 9: Allstate Life Insurance Company Will Be Reclassified as Held For Sale Until Closing
8 Allstate Life Insurance Company Will Be Reclassified as Held For Sale Until Closing ($ in billions) Reported Held for Sale Presentation Assets Investments 91.2 63.3 Reinsurance Recoverables 9.1 7.3 Separate Accounts 3.1 0.3 Other Assets 19.4 17.7 Assets Held for Sale(1) - 34.2 Total Assets $ 122.8
Slide 10: Financial Book Loss Estimate of $3.1 Billion to be Recognized in First Quarter 2021
9 Financial Book Loss Estimate of $3.1 Billion to be Recognized in First Quarter 2021 Source: FactSet, SNL, Company filings; Note: Market date as of 1/21/21 (1) Reflects 9/30/20 ALIC GAAP equity adjusted for pre-closing transactions and other adjustments required under the terms of the purchase agre
Slide 11: Clarity on Attractive Property-Liability and Service Businesses Returns and Increased Return on Equity
10 Clarity on Attractive Property-Liability and Service Businesses Returns and Increased Return on Equity Return on Equity (2019) Price to LTM Earnings Multiple(1) Allstate Insurance: Reported Net Income 21.7% 7.7x Adjusted Net Income* 16.9% 9.1x Adjusted Net Income* (post ALIC sale) 17.9%(2) - Adju
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Slide 13: Forward-Looking Statements
12 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 A