Slide 1: Special Topic Investor Call: Property-Liability Claim Settlement and Reserving Practices
Special Topic Investor Call Property-Liability Claim Settlement and Reserving Practices 12.02.2022 The Allstate Corporation Exhibit 99
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
The Allstate Corporation 2022 PAGE 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 mea
Slide 3: Allstate's Strategy To Increase Shareholder Value
The Allstate Corporation 2022 PAGE 2 Allstate’s Strategy To Increase Shareholder Value Increase Personal Property-Liability market share Expand Protection Services Leveraging Allstate brand, customer base and capabilities Property-Liability Claim Settlement and Reserving Practices • Claims capabilit
Slide 4: Claims Practices Are Key To Value Creation, Customer Satisfaction and Retention
The Allstate Corporation 2022 PAGE 3 Claims Practices Are Key To Value Creation, Customer Satisfaction and Retention ($ in billions) Adjusted Net Income / (Loss)* Claims Cost (% of Premiums) 2015 – 2019 (Average) 2022(1) 2015 – 2019 2022(1) Insurance underwriting(2) $1.5 $(1.3) 69.1% 82.6% - Auto in
Slide 5: Auto Physical Damage and Bodily Injury Losses Represent Largest Components of Incurred Losses and Reserve Liabilities
The Allstate Corporation 2022 PAGE 4 Allstate brand auto – bodily injury $8.9 Allstate brand auto – physical damage $2.2 Allstate brand auto – other liability $2.7 Allstate brand auto - other $3.0 Homeowners $3.0 National General $2.6 Commercial $1.7 Other Property $1.3 Auto Physical Damage and Bodi
Slide 6: Allstate Has a Highly Effective and Efficient Claims Organization
The Allstate Corporation 2022 PAGE 5 Allstate Has a Highly Effective and Efficient Claims Organization Property-Liability claims expense ratio excluding catastrophes(2)Claims operating statistics Allstate Brand Claims Reported – 2021 (in millions) (1) Auto Insurance 5.3 - Physical Damage 3.3 - Third
Slide 7: Auto Physical Damage Claims Processes Designed for Effectiveness and Efficiency
The Allstate Corporation 2022 PAGE 6 Auto Physical Damage Claims Processes Designed for Effectiveness and Efficiency • Physical damage loss costs to repair or replace customers’ autos and pay for damage to 3rd party property account for 55% of total Allstate brand auto loss costs o Total losses requ
Slide 8: Auto Bodily Injury Claims Are Complicated, Requiring Multiple Years to Resolve
The Allstate Corporation 2022 PAGE 7 1st Party Medical Coverages Physical Damage Claim Auto Bodily Injury Claims Are Complicated, Requiring Multiple Years to Resolve • Third party bodily injury claims account for 27% of Allstate brand auto loss costs o Medical treatments and liability assessments de
Slide 9: Accurate and Efficient Home Insurance Claims Practices Leverage Technology, Analytics and Scale
The Allstate Corporation 2022 PAGE 8 Accurate and Efficient Home Insurance Claims Practices Leverage Technology, Analytics and Scale Advanced technology • Satellite Imagery: Advance knowledge of dimensions and features • Aircraft: Survey the area to determine extent of damage • Video: Virtual Assist
Slide 10: Loss Reserving Is Iterative With Strong Governance and Oversight
The Allstate Corporation 2022 PAGE 9 Loss Reserving Is Iterative With Strong Governance and Oversight Extensive data and analytics Management oversight Casualty Actuarial Society and American Academy of Actuaries establish professional standards Comprehensive Governance and Controls to Ensure Adequa
Slide 11: Claim Reserve Liability Changes Have Usually Positively Impacted Reported Income
The Allstate Corporation 2022 PAGE 10 -1.1 -0.6 -0.8 0.1 -0.4 -1.9 -1.1 -0.8 -0.2 0.5 4.1 -1.9 -1.1 -1.5 0.2 -0.8 -3.2 -1.9 -1.4 -0.4 0.9 5.2 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD 2022 Point impact on combined ratio % impact to net reserve liability Claim Reserve Liability Changes Ha
Slide 12: Prior Year Increases in 2022 Largely Reflecting Increased Subrogation Demands
The Allstate Corporation 2022 PAGE 11 Collision and Comprehensive (1st Party) Property Damage (3rd Party) C L A IM S P R O C E S S 3rd Party Demand Subrogation Payout Subrogation Demand Investigation Damage Assessment First Notice Of Loss Payout Subrogation Receipt Repair or Replace Auto Accident Ph
Slide 13: Physical Damage Loss Costs Impacted by Rising Inflation
The Allstate Corporation 2022 PAGE 12 Physical Damage Loss Costs Impacted by Rising Inflation (1) Source: Manheim Used Vehicle Value Index; U.S. Bureau of Labor Statistics seasonally adjusted; CCC original equipment manufacturer industry average price per part (2) Allstate brand report year severity
Slide 14: Physical Damage Adverse Prior Year Reserve Development in First Half of 2022
The Allstate Corporation 2022 PAGE 13 Physical Damage Adverse Prior Year Reserve Development in First Half of 2022 Auto physical damage gross paid loss development(1) Report year gross paid losses from months 13 through 21 880 940 1,030 930 1,630 2017 2018 2019 2020 2021 (1) Allstate brand auto excl
Slide 15: Bodily Injury Claims Estimates Use Multiple Actuarial Methodologies
The Allstate Corporation 2022 PAGE 14 Bodily Injury Claims Estimates Use Multiple Actuarial Methodologies Reserving Process Open notice count Close without payment if no liability Close with payment Adjuster establishes case reserve Adjuster continuously reviews case reserve throughout process, incl
Slide 16: Bodily Injury Prior Year Reserves Strengthened in Response to Accelerating Loss Trends
The Allstate Corporation 2022 PAGE 15 Methodologies Evaluation Elements Bodily Injury Prior Year Reserves Strengthened in Response to Accelerating Loss Trends Allstate brand bodily injury(1) reserve evaluation (1) Reflects Allstate brand auto excluding Esurance and Canada Allstate brand auto bodily
Slide 17: Allstate Protection Strong Historical Returns in Auto and Homeowners
The Allstate Corporation 2022 PAGE 16 80 90 100 110 120 2017 2018 2019 2020 2021 Allstate Protection Strong Historical Returns in Auto and Homeowners Insurance (% EP) Homeowners insurance combined ratios(1) State Farm Progressive Industry average SF TRV TRV Travelers TRV SF ALL PGRPGR TRV (1) Indust
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Slide 19: Forward-looking Statements
The Allstate Corporation 2022 PAGE 18 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 Priva