Allstate Corporation (the) · NYSE:ALL
Allstate Corporation (the) — Q1 2020 Earnings Presentation
41 slides from Allstate Corporation (the)'s earnings presentation, May 5, 2020
Slide 1: Investor Supplement First Quarter 2020
The Allstate Corporation Investor Supplement First Quarter 2020 The condensed consolidated financial statements and financial exhibits included herein are unaudited. These condensed consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statement
Slide 2: Table of Contents
The Allstate Corporation Investor Supplement - First Quarter 2020 Table of Contents Consolidated Operations Service Businesses Condensed Consolidated Statements of Operations 1 Segment Results 24 Contribution to Income 2 Allstate Protection Plans Results 25 Segment Results 3 Condensed Consolidated S
Slide 3: Condensed Consolidated Statements of Operations
The Allstate Corporation Condensed Consolidated Statements of Operations ($ in millions, except per share data) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Revenues Property and casualty insurance premiums (1) $ 9,235 $ 9,194 $ 9,094 $ 8,986 $ 8,802 Li
Slide 4: Contribution to Income
The Allstate Corporation Contribution to Income ($ in millions, except per share data) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Contribution to income Net income applicable to common shareholders $ 513 $ 1,707 $ 889 $ 821 $ 1,261 Realized capital (g
Slide 5: Consolidating Segment Results
The Allstate Corporation Consolidating Segment Results Allstate Discontinued Property- Service Allstate Allstate Allstate Corporate Intersegment ($ in millions) Protection Lines Liability Businesses Life Benefits Annuities and Other Eliminations Consolidated Three months ended March 31, 2020 Premium
Slide 6: Condensed Consolidated Statements of Financial Position
The Allstate Corporation Condensed Consolidated Statements of Financial Position ($ in millions) March 31, 2020 Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 March 31, 2019 Assets Investments Fixed income securities, at fair value (1) $ 59,857 $ 59,044 $ 59,259 $ 58,484 $ 58,202 Equity securities, at f
Slide 7: Book Value per Common Share
The Allstate Corporation Book Value per Common Share ($ in millions, except per share data) March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Book value per common share Numerator: Common shareholders' equity (1) $ 22,203 $ 23,750 $ 23,088 $ 22,546 $ 21,488 Denominator: Common
Slide 8: Return on Common Shareholders' Equity
The Allstate Corporation Return on Common Shareholders' Equity ($ in millions) Twelve months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Return on Common Shareholders' Equity Numerator: Net income applicable to common shareholders (1)(2) $ 3,930 $ 4,678 $ 2,386 $ 2
Slide 9: Debt to Capital
The Allstate Corporation Debt to Capital March 31, Dec. 31, Sept. 30, June 30, March 31, ($ in millions) 2020 2019 2019 2019 2019 Debt Short-term debt $ - $ - $ - $ - $ - Long-term debt 6,633 6,631 6,630 6,628 6,453 Total debt $ 6,633 $ 6,631 $ 6,630 $ 6,628 $ 6,453 Capital resources Debt $ 6,633 $
Slide 10: Policies in Force and Other Statistics
The Allstate Corporation Policies in Force and Other Statistics March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Policies in Force statistics (in thousands) (1) Allstate Protection Allstate brand Auto 20,323 20,398 20,339 20,301 20,145 Homeowners 6,254 6,254 6,237 6,221 6,198
Slide 11: Premiums Written for Allstate Protection and Service Businesses
The Allstate Corporation Premiums Written for Allstate Protection and Service Businesses ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Allstate Protection Allstate brand (1) Auto $ 5,574 $ 5,470 $ 5,599 $ 5,472 $ 5,395 Homeowners 1,618 1,
Slide 12: Property-Liability Results
The Allstate Corporation Property-Liability Results ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Premiums written $ 8,592 $ 8,737 $ 9,312 $ 9,043 $ 8,327 Decrease (increase) in unearned premiums 370 129 (538) (384) 179 Other (81) 7 8 22
Slide 13: Property-Liability Catastrophe Losses
The Allstate Corporation Property-Liability Catastrophe Losses ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Allstate Protection Allstate brand Auto $ 12 $ 2 $ 130 $ 179 $ 68 Homeowners (1) 170 (3) 253 (3) 292 781 511 Other personal lines
Slide 14: Property-Liability Prior Year Reserve Reestimates
The Allstate Corporation Property-Liability Prior Year Reserve Reestimates ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Prior Year Reserve Reestimates (1) Allstate Protection Allstate brand Auto $ 9 $ (11) $ (152) $ (94) $ (58) Homeowner
Slide 15: Property-Liability Catastrophe Losses included in Prior Year Reserve Reestimates
The Allstate Corporation Property-Liability Catastrophe Losses included in Prior Year Reserve Reestimates ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Allstate Protection (1) Allstate brand Auto $ (8) $ (8) $ (1) $ (7) $ (1) Homeowners (
Slide 16: Allstate Protection Impact of Net Rate Changes Approved on Premiums Written
The Allstate Corporation Allstate Protection Impact of Net Rate Changes Approved on Premiums Written Three months ended Three months ended Three months ended March 31, 2020 (1) December 31, 2019 September 30, 2019 Number of Location Number of Location Number of Location locations (5) Total brand (%)
Slide 17: Allstate Brand Profitability Measures
The Allstate Corporation Allstate Brand Profitability Measures ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Net premiums written $ 7,824 $ 8,008 $ 8,472 $ 8,262 $ 7,544 Net premiums earned Auto $ 5,532 $ 5,509 $ 5,446 $ 5,404 $ 5,321 Hom
Slide 18: Allstate Brand Statistics
The Allstate Corporation Allstate Brand Statistics (1) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 New Issued Applications (in thousands) (2) Auto 751 694 753 755 740 Homeowners 199 196 226 229 197 Average Premium - Gross Written ($) (3) Auto 598 595 5
Slide 19: Esurance Brand Profitability Measures and Statistics
The Allstate Corporation Esurance Brand Profitability Measures and Statistics ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Net premiums written $ 546 $ 489 $ 562 $ 503 $ 559 Net premiums earned Auto $ 487 $ 500 $ 498 $ 496 $ 475 Homeowne
Slide 20: Encompass Brand Profitability Measures and Statistics
The Allstate Corporation Encompass Brand Profitability Measures and Statistics ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Net premiums written $ 222 $ 240 $ 278 $ 278 $ 224 Net premiums earned Auto $ 135 $ 134 $ 136 $ 135 $ 134 Homeown
Slide 21: Auto Profitability Measures by Brand
The Allstate Corporation Auto Profitability Measures by Brand ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Allstate brand auto Net premiums written $ 5,574 $ 5,470 $ 5,599 $ 5,472 $ 5,395 Net premiums earned $ 5,532 $ 5,509 $ 5,446 $ 5,4
Slide 22: Homeowners Profitability Measures by Brand
The Allstate Corporation Homeowners Profitability Measures by Brand ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Allstate brand homeowners Net premiums written $ 1,618 $ 1,861 $ 2,143 $ 2,076 $ 1,565 Net premiums earned $ 1,907 $ 1,892 $
Slide 23: Other Personal Lines Profitability Measures by Brand
The Allstate Corporation Other Personal Lines Profitability Measures by Brand (1) ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Allstate brand other personal lines Net premiums written $ 411 $ 434 $ 492 $ 478 $ 399 Net premiums earned $ 4
Slide 24: Commercial Lines Profitability Measures
The Allstate Corporation Commercial Lines Profitability Measures (1) ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Net premiums written $ 221 $ 243 $ 238 $ 236 $ 185 Net premiums earned $ 218 $ 237 $ 236 $ 226 $ 183 Other revenue 1 2 1 2
Slide 25: Discontinued Lines and Coverages Reserves
The Allstate Corporation Discontinued Lines and Coverages Reserves Three months ($ in millions) ended Twelve months ended December 31, March 31, (net of reinsurance) 2020 2019 2018 2017 2016 2015 Asbestos Beginning reserves $ 810 $ 866 $ 884 $ 912 $ 960 $ 1,014 Incurred claims and claims expense - 2
Slide 26: Service Businesses Segment Results
The Allstate Corporation Service Businesses Segment Results (1) ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Service Businesses Net premiums written $ 379 $ 453 $ 364 $ 350 $ 368 Net premiums earned $ 354 $ 321 $ 312 $ 305 $ 295 Other re
Slide 27: Allstate Protection Plans Results
The Allstate Corporation Allstate Protection Plans Results ($ in millions) As of or for the three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Net premiums written $ 221 $ 278 $ 181 $ 167 $ 206 Net premiums earned $ 206 $ 172 $ 163 $ 153 $ 145 Other revenue (
Slide 28: Allstate Life Segment Results and Other Statistics
The Allstate Corporation Allstate Life Segment Results and Other Statistics ($ in millions) As of or for the three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Premiums $ 153 $ 166 $ 155 $ 157 $ 154 Contract charges 180 176 176 176 183 Other revenue (1) 32 34
Slide 29: Allstate Life Return on Equity
The Allstate Corporation Allstate Life Return on Equity ($ in millions) Twelve months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Return on Equity Numerator: Net income applicable to common shareholders (1)(2) $ 244 $ 247 $ 237 $ 252 $ 260 Denominator: Beginning eq
Slide 30: Allstate Benefits Segment Results and Other Statistics
The Allstate Corporation Allstate Benefits Segment Results and Other Statistics ($ in millions) As of or for the three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Premiums $ 253 $ 254 $ 262 $ 256 $ 259 Contract charges 29 28 29 28 29 Net investment income 20
Slide 31: Allstate Benefits Return on Equity
The Allstate Corporation Allstate Benefits Return on Equity ($ in millions) Twelve months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Return on Equity Numerator: Net income applicable to common shareholders (1) $ 104 $ 124 $ 126 $ 128 $ 125 Denominator: Beginning e
Slide 32: Allstate Annuities Segment Results and Other Statistics
The Allstate Corporation Allstate Annuities Segment Results and Other Statistics ($ in millions) As of or for the three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Contract charges $ 2 $ 3 $ 3 $ 4 $ 3 Net investment income (1) 47 180 251 296 190 Periodic set
Slide 33: Allstate Annuities Return on Equity
The Allstate Corporation Allstate Annuities Return on Equity ($ in millions) Twelve months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Return on Equity Numerator: Net (loss) income applicable to common shareholders (1)(2) $ (164) $ 282 $ 94 $ 194 $ 156 Denominator:
Slide 34: Corporate and Other Segment Results
The Allstate Corporation Corporate and Other Segment Results ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Net investment income $ 14 $ 18 $ 21 $ 19 $ 12 Operating costs and expenses (25) (27) (19) (24) (21) Interest expense (81) (81) (80
Slide 35: Investment Position
The Allstate Corporation Investment Position March 31, Dec. 31, Sept. 30, June 30, March 31, ($ in millions) 2020 2019 2019 2019 2019 Consolidated Investments Fixed income securities, at fair value $ 59,857 $ 59,044 $ 59,259 $ 58,484 $ 58,202 Equity securities (1) 3,701 8,162 8,206 7,906 5,802 Mortg
Slide 36: Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax)
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) ($ in millions) Three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Net Investment Income Fixed income securities $ 525 $ 548 $ 546 $ 543 $ 538 Equity securi
Slide 37: Net Investment Income, Yields and Realized Capital Gains and Losses by Segment
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) by Segment ($ in millions) Three months ended March 31, 2020 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuities Other Total Net Investment Incom
Slide 38: Investment Position and Results by Strategy and Segment
The Allstate Corporation Investment Position and Results by Strategy and Segment As of or for the three months ended ($ in millions) As of or for the three months ended March 31, 2020 March 31, 2019 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuiti
Slide 39: Performance-Based Investments
The Allstate Corporation Performance-Based ("PB") Investments ($ in millions) As of or for the three months ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2019 2019 2019 2019 Investment position Limited partnerships Private equity $ 5,781 $ 6,131 $ 6,162 $ 5,952 $ 5,786 Real estate 1,090
Slide 40: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. A
Slide 41: Definitions of Non-GAAP Measures (continued)
Definitions of Non-GAAP Measures (continued) Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non- catastrophe reserve reestimates on the c