Q1 2023 Earnings Call Presentation
First Quarter 2023 Earnings Presentation
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 most recent earnings release, investor supplement or on our website, www.allstateinvestors.com, under the "Financials" link.
Additional information on factors that could cause results to differ materially from this presentation is available in the 2022 Form 10-K, Form 10-Q for
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PAGE 1 |
Allstate's Strategy To Increase Shareholder Value
Increase Personal
Property-Liability Market Share
Leveraging Allstate brand,
customer base and capabilities
Expand Protection
Services
First quarter 2023 highlights
- Net loss of
$346 million
- Property-Liabilityunderwriting loss o Strong investment results
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- Protection Services and Health and Benefits profit
- Executing comprehensive plan to improve auto insurance profitability by:
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- Raising rates
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- Reducing expenseso Limiting growth
o Enhancing claims processes
- Reducing expenseso Limiting growth
- Advancing Transformative Growth plan
- Expanding Allstate Protection Plans
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PAGE 2 |
Allstate Remains Focused on Improving Profitability
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Revenues increased |
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Liability earned premiums from rate increases |
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Three months ended |
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($ in millions, except per share data and ratios) |
2023 |
2022 |
Change |
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Total revenues |
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11.8% |
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Property-Liability insurance premiums |
11,635 |
10,498 |
10.8% |
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Accident and health insurance premiums and contract charges |
463 |
468 |
(1.1%) |
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Net investment income |
575 |
594 |
(3.2%) |
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Net gains (losses) on investments and derivatives |
14 |
(267) |
NM |
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Income applicable to common shareholders: |
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Net income (loss) |
Benefited from higher |
(346) |
634 |
NM |
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Adjusted net income (loss)* |
investment yields |
(342) |
730 |
NM |
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Per diluted common share(1) |
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Net income (loss) |
(1.31) |
2.25 |
NM |
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Adjusted net income (loss)* |
(1.30) |
2.59 |
NM |
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Retuon Allstate common shareholders' equity (trailing twelve months) |
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Net income applicable to common shareholders |
(13.0%) |
15.6% |
(28.6) pts |
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Adjusted net income* |
(6.7%) |
13.0% |
(19.7) pts |
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NM = Not meaningful
Reflects underwriting loss in the first quarter primarily driven by
elevated catastrophe losses and higher loss costs in auto insurance
- In periods where a net loss or adjusted net loss is reported, weighted average shares for basic earnings per share is used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation.
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PAGE 3 |
Earned Premium Increases Offset by Elevated Catastrophe Losses and Continued Underlying Loss Cost Increases
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Underlying combined ratio improved relative to 2022, driven primarily by |
Earned premium increase of 10.8% offset by |
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higher average premium from rate increases and expense reductions |
increased loss costs |
Property-Liability recorded and underlying combined ratio*
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106.6 |
108.6 |
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95.9 |
11.5 |
15.3 |
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93.0 |
93.2 |
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92.0 |
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8.8 |
7.9 |
7.0 |
87.6 |
9.7 |
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8.2 |
95.1 |
93.3 |
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86.2 |
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84.2 |
85.3 |
85.0 |
79.4 |
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2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
Q1 2023 |
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Underlying combined ratio* |
Catastrophe losses, PYRR and |
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Property-Liability combined ratio reconciliation
Q1 2023 compared to YE 2022
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7.4 |
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106.6 |
0.1 |
108.6 |
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-1.9 |
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-3.6 |
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YE 2022 Combined Ratio |
Underlying Loss Ratio |
Catastrophe Losses |
Underwriting Expense Ratio |
Non-Cat Prior Year Reserves |
Q1 2023 Combined Ratio |
Elevated catastrophe losses of
drove the recorded combined ratio increase to prior year
(1) Reflects combined ratio impact of catastrophe losses, prior year reserve reestimates and amortization of purchased intangibles
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PAGE 4 |
Attachments
Disclaimer


Q1 2023 Investor Supplement
Q1 2023 Investor Supplement – Excel
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