Newswires
Newswires RSS Get our newsletter
Order Prints
Newswires No comments

Q1 2023 Investor Supplement – Excel

Cover Page

The Allstate Corporation
Investor Supplement
First Quarter 2023
The condensed consolidated financial statements and financial exhibits included herein are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*). These measures are defined on the pages "Definitions of Non-GAAP Measures" and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.

Table of Contents

The Allstate Corporation
Investor Supplement - First Quarter 2023
Table of Contents
Consolidated Operations Corporate and Other
Condensed Consolidated Statements of Operations 1 Segment Results 13
Contribution to Income 2
Book Value per Common Share and Debt to Capital 3 Investments
Retuon Allstate Common Shareholders' Equity 4 Investment Position and Results 14
Policies in Force 5 Investment Position and Results by Strategy 15
Property-Liability Definitions of Non-GAAP Measures 16, 17
Results 6
Allstate Protection Glossary 18
Profitability Measures 7
Impact of Net Rate Changes Implemented on Premiums Written 8 Items included in the glossary are denoted with a caret (^) the first time used.
Auto Profitability Measures and Statistics 9
Homeowners Profitability Measures and Statistics 10 Appendices (1)
Historical Results Reflecting Adoption of Accounting Standard related to Long-Duration Insurance Contracts
Protection Services
Segment Results 11 Condensed Consolidated Financial Statements and Other Financial Information App A, B
Allstate Health and Benefits
Segment Results and Other Statistics 12
(1) Effective January 1, 2023, we adopted the Financial Accounting Standards Board ("FASB") guidance revising the accounting for certain long-duration insurance contracts using the modified retrospective approach to the transition date of January 1, 2021. The pages provide a summary of the impacts of this change on previously reported periods, including our condensed consolidated financial statements.

1

The Allstate Corporation
Condensed Consolidated Statements of Operations (1)
($ in millions, except per share data) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Revenues
Property and casualty insurance premiums ^ $ 12,173 $ 11,900 $ 11,661 $ 11,362 $ 10,981
Accident and health insurance premiums and contract charges ^ 463 436 463 465 468
Other revenue ^ 561 660 561 563 560
Net investment income 575 557 690 562 594
Net gains (losses) on investments and derivatives 14 95 (167) (733) (267)
Total revenues 13,786 13,648 13,208 12,219 12,336
Costs and expenses
Property and casualty insurance claims and claims expense 10,326 10,002 10,073 9,367 7,822
Accident, health and other policy benefits 265 257 252 265 268
Amortization of deferred policy acquisition costs 1,744 1,725 1,683 1,618 1,608
Operating costs and expenses 1,716 1,852 1,842 1,850 1,902
Pension and other postretirement remeasurement (gains) losses (53) 25 79 259 (247)
Restructuring and related charges 27 24 14 1 12
Amortization of purchased intangibles 81 89 90 87 87
Interest expense 86 84 85 83 83
Total costs and expenses 14,192 14,058 14,118 13,530 11,535
Income (loss) from operations before income tax expense (406) (410) (910) (1,311) 801
Income tax expense (benefit) (85) (114) (236) (289) 151
Net income (loss) (321) (296) (674) (1,022) 650
Less: Net income (loss) attributable to noncontrolling interest (1) (19) (15) (9) (10)
Net income (loss) attributable to Allstate (320) (277) (659) (1,013) 660
Less: Preferred stock dividends 26 26 26 27 26
Net income (loss) applicable to common shareholders $ (346) $ (303) $ (685) $ (1,040) $ 634
Earnings per common share
Net income (loss) applicable to common shareholders per common share - Basic $ (1.31) $ (1.15) $ (2.55) $ (3.80) $ 2.28
Weighted average common shares - Basic 263.5 264.4 268.7 273.8 278.1
Net income (loss) applicable to common shareholders per common share - Diluted $ (1.31) (2) $ (1.15) (3) $ (2.55) (4) $ (3.80) (5) $ 2.25
Weighted average common shares - Diluted 263.5 (2) 264.4 (3) 268.7 (4) 273.8 (5) 281.8
Cash dividends declared per common share $ 0.89 $ 0.85 $ 0.85 $ 0.85 $ 0.85
(1) Prior periods have been recast to reflect the impact of the adoption of FASB guidance revising the accounting for certain long-duration insurance contracts.
(2) Due to a net loss reported for the three months ended March 31, 2023, calculation uses weighted average shares of 263.5 million, which excludes weighted average diluted shares of 2.6 million.
(3) Due to a net loss reported for the three months ended December 31, 2022, calculation uses weighted average shares of 264.4 million, which excludes weighted average diluted shares of 3.1 million.
(4) Due to a net loss reported for the three months ended September 30, 2022, calculation uses weighted average shares of 268.7 million, which excludes weighted average diluted shares of 2.9 million.
(5) Due to a net loss reported for the three months ended June 30, 2022, calculation uses weighted average shares of 273.8 million, which excludes weighted average diluted shares of 3.2 million.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

2

The Allstate Corporation
Contribution to Income (1)
($ in millions, except per share data) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Contribution to income
Net income (loss) applicable to common shareholders $ (346) $ (303) $ (685) $ (1,040) $ 634
Net (gains) losses on investments and derivatives (14) (95) 167 733 267
Pension and other postretirement remeasurement (gains) losses (53) 25 79 259 (247)
Amortization of purchased intangibles 81 89 90 87 87
(Gain) loss on disposition (9) (83) (3) 5 (27) 16
Income tax expense (benefit) (1) 16 (67) (219) (27)
Adjusted net income (loss) * $ (342) $ (351) $ (411) $ (207) $ 730
Income per common share - Diluted
Net income (loss) applicable to common shareholders $ (1.31) (2) $ (1.15) (4) $ (2.55) (5) $ (3.80) (6) $ 2.25
Net (gains) losses on investments and derivatives (0.05) (0.36) 0.62 2.68 0.95
Pension and other postretirement remeasurement (gains) losses (0.20) 0.09 0.29 0.95 (0.88)
Amortization of purchased intangibles 0.31 0.34 0.34 0.32 0.31
(Gain) loss on disposition (0.04) (0.32) 0.02 (0.10) 0.06
Income tax expense (benefit) (0.01) 0.07 (0.25) (0.80) (0.10)
Adjusted net income (loss) * $ (1.30) (2) $ (1.33) (4) $ (1.53) (5) $ (0.75) (6) $ 2.59
Weighted average common shares - Diluted 263.5 (2) 264.4 (4) 268.7 (5) 273.8 (6) 281.8
(1) Prior periods have been recast to reflect the impact of the adoption of FASB guidance revising the accounting for certain long-duration insurance contracts.
(2) Due to a net loss reported for the three months ended March 31, 2023, calculation uses weighted average shares of 263.5 million, which excludes weighted average diluted shares of 2.6 million.
(3) Includes $83 million related to the gain on sale of headquarters in the fourth quarter of 2022 reported as other revenue in Corporate and Other segment.
(4) Due to a net loss reported for the three months ended December 31, 2022, calculation uses weighted average shares of 264.4 million, which excludes weighted average diluted shares of 3.1 million.
(5) Due to a net loss reported for the three months ended September 30, 2022, calculation uses weighted average shares of 268.7 million, which excludes weighted average diluted shares of 2.9 million.
(6) Due to a net loss reported for the three months ended June 30, 2022, calculation uses weighted average shares of 273.8 million, which excludes weighted average diluted shares of 3.2 million.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

3

The Allstate Corporation
Book Value per Common Share and Debt to Capital (1)
($ in millions, except per share data) March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Book value per common share
Numerator:
Allstate common shareholders' equity (2) $ 15,524 $ 15,518 $ 15,713 $ 18,094 $ 21,105
Denominator:
Common shares outstanding and dilutive potential common shares outstanding (3) 264.7 267.0 269.1 274.3 279.7
Book value per common share $ 58.65 $ 58.12 $ 58.39 $ 65.96 $ 75.46
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities
Numerator:
Allstate common shareholders' equity $ 15,524 $ 15,518 $ 15,713 $ 18,094 $ 21,105
Less: Unrealized net capital gains and losses on fixed income securities (1,575) (2,254) (2,933) (2,143) (996)
Adjusted Allstate common shareholders' equity $ 17,099 $ 17,772 $ 18,646 $ 20,237 $ 22,101
Denominator:
Common shares outstanding and dilutive potential common shares outstanding 264.7 267.0 269.1 274.3 279.7
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 64.60 $ 66.56 $ 69.29 $ 73.78 $ 79.02
Total debt $ 8,452 $ 7,964 $ 7,967 $ 7,970 $ 7,973
Total capital resources $ 25,946 $ 25,452 $ 25,650 $ 28,034 $ 31,048
Ratio of debt to Allstate shareholders' equity 48.3 % 45.5 % 45.1 % 39.7 % 34.6 %
Ratio of debt to capital resources 32.6 % 31.3 % 31.1 % 28.4 % 25.7 %
(1) Prior periods have been recast to reflect the impact of the adoption of FASB guidance revising the accounting for certain long-duration insurance contracts.
(2) Excludes equity related to preferred stock of $1,970 million for all periods shown.
(3) Common shares outstanding were 263,057,581 and 263,458,276 as of March 31, 2023 and December 31, 2022, respectively.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

4

The Allstate Corporation
Retuon Allstate Common Shareholders' Equity (1)
($ in millions) Twelve months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Retuon Allstate common shareholders' equity
Numerator:
Net income (loss) applicable to common shareholders (2) $ (2,374) $ (1,394) $ (294) $ 913 $ 3,545
Denominator:
Beginning Allstate common shareholders' equity $ 21,105 $ 22,974 $ 24,515 $ 25,774 $ 24,421
Ending Allstate common shareholders' equity (3) 15,524 15,518 15,713 18,094 21,105
Average Allstate common shareholders' equity ^ $ 18,315 $ 19,246 $ 20,114 $ 21,934 $ 22,763
Retuon Allstate common shareholders' equity (13.0) % (7.2) % (1.5) % 4.2 % 15.6 %
Adjusted net income retuon Allstate common shareholders' equity
Numerator:
Adjusted net income (loss) * (2) $ (1,311) $ (239) $ 915 $ 1,557 $ 2,910
Denominator:
Beginning Allstate common shareholders' equity $ 21,105 $ 22,974 $ 24,515 $ 25,774 $ 24,421
Less: Unrealized net capital gains and losses (996) 598 1,829 2,165 1,681
Adjusted beginning Allstate common shareholders' equity 22,101 22,376 22,686 23,609 22,740
Ending Allstate common shareholders' equity 15,524 15,518 15,713 18,094 21,105
Less: Unrealized net capital gains and losses (1,573) (2,255) (2,929) (2,140) (996)
Adjusted ending Allstate common shareholders' equity 17,097 17,773 18,642 20,234 22,101
Average adjusted Allstate common shareholders' equity ^ $ 19,599 $ 20,075 $ 20,664 $ 21,922 $ 22,421
Adjusted net income retuon Allstate common shareholders' equity * (6.7) % (1.2) % 4.4 % 7.1 % 13.0 %
(1) Prior periods have been recast to reflect the impact of the adoption of FASB guidance revising the accounting for certain long-duration insurance contracts.
(2) Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period.
(3) Excludes equity related to preferred stock of $1,970 million for all periods shown.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

5

The Allstate Corporation
Policies in Force
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Policies in force statistics (in thousands) (1)
Allstate Protection
Auto 25,733 26,034 26,131 26,192 26,071
Homeowners 7,262 7,260 7,237 7,197 7,165
Other personal lines 4,913 4,936 4,930 4,919 4,894
Commercial lines 307 311 310 311 312
Total 38,215 38,541 38,608 38,619 38,442
Allstate brand
Auto 21,142 21,658 21,853 21,979 21,968
Homeowners 6,621 6,622 6,599 6,566 6,536
National General
Auto 4,591 4,376 4,278 4,213 4,103
Homeowners 641 638 638 631 629
Protection Services
Allstate Protection Plans 136,591 138,726 134,700 137,292 139,992
Allstate Dealer Services 3,839 3,865 3,888 3,921 3,924
Allstate Roadside 536 531 523 519 518
Allstate Identity Protection 3,206 3,112 2,968 2,961 2,949
Total 144,172 146,234 142,079 144,693 147,383
Allstate Health and Benefits 4,339 4,296 4,320 4,368 4,484
Total policies in force 186,726 189,071 185,007 187,680 190,309
(1) Policy counts are based on items rather than customers.
• A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy.
• PIF does not reflect banking relationships for our lender-placed insurance products to customers including fire, home and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles.
• Commercial lines PIF for shared economy agreements reflect contracts that cover multiple drivers as opposed to individual drivers.
• Allstate Roadside reflects memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner.
• Allstate Dealer Services reflects service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators ("TPAs") as the customer relationship is managed by the TPAs.
• Allstate Protection Plans represents active consumer product protection plans.
• Allstate Identity Protection reflects individual customer counts for identity protection products.
• Allstate Health and Benefits reflects certificate counts as opposed to group counts.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

6

The Allstate Corporation
Property-Liability Results
($ in millions, except ratios) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Premiums written $ 11,783 $ 11,480 $ 12,037 $ 11,509 $ 10,761
(Increase) decrease in unearned premiums (127) (67) (852) (599) (258)
Other (21) (33) (28) (36) (5)
Premiums earned 11,635 11,380 11,157 10,874 10,498
Other revenue 353 350 364 355 347
Claims and claims expense (10,180) (9,865) (9,934) (9,231) (7,702)
Amortization of deferred policy acquisition costs (1,452) (1,453) (1,414) (1,355) (1,348)
Operating costs and expenses (1,279) (1,365) (1,390) (1,450) (1,445)
Restructuring and related charges (21) (20) (14) 2 (12)
Amortization of purchased intangibles (57) (62) (61) (59) (58)
Underwriting income (loss) (1) $ (1,001) $ (1,035) $ (1,292) $ (864) $ 280
Catastrophe losses $ (1,691) $ (779) $ (763) $ (1,108) $ (462)
Claims expense excluding catastrophe expense ^ (670) (701) (679) (651) (621)
Operating ratios and reconciliations to underlying ratios
Loss ratio 87.5 86.7 89.0 84.9 73.3
Effect of catastrophe losses (14.5) (6.8) (6.8) (10.2) (4.4)
Effect of prior year non-catastrophe reserve reestimates (0.3) (2.5) (7.8) (3.8) (1.5)
Underlying loss ratio * 72.7 77.4 74.4 70.9 67.4
Expense ratio ^ 21.1 22.4 22.6 23.0 24.0
Effect of amortization of purchased intangibles (0.5) (0.6) (0.6) (0.5) (0.5)
Underlying expense ratio * 20.6 21.8 22.0 22.5 23.5
Effect of advertising expense (1.3) (1.3) (1.7) (2.3) (3.3)
Effect of restructuring and related charges (0.2) (0.1) (0.1) - 0 (0.1)
Adjusted underwriting expense ratio * 19.1 20.4 20.2 20.2 20.1
Claims expense ratio excluding catastrophe expense ^ 5.8 6.2 6.1 6.0 5.9
Adjusted expense ratio * 24.9 26.6 26.3 26.2 26.0
Combined ratio 108.6 109.1 111.6 107.9 97.3
Effect of catastrophe losses (14.5) (6.8) (6.8) (10.2) (4.4)
Effect of prior year non-catastrophe reserve reestimates (0.3) (2.5) (7.8) (3.8) (1.5)
Effect of amortization of purchased intangibles (0.5) (0.6) (0.6) (0.5) (0.5)
Underlying combined ratio * 93.3 99.2 96.4 93.4 90.9
Effect of Run-off Property-Liability on combined ratio - 0 - 0 1.1 - 0 - 0
(1) Underwriting income (loss)
Allstate brand $ (972) $ (990) $ (1,049) $ (825) $ 251
National General (28) (44) (124) (38) 29
Answer Financial 2 1 3 2 2
Total underwriting income (loss) for Allstate Protection (998) (1,033) (1,170) (861) 282
Run-off Property-Liability (3) (2) (122) (3) (2)
Total underwriting income (loss) for Property-Liability $ (1,001) $ (1,035) $ (1,292) $ (864) $ 280
Other financial information
Net investment income $ 509 $ 494 $ 632 $ 506 $ 558
Income tax (expense) benefit on operations 91 115 179 79 (175)
Net income (loss) attributable to noncontrolling interest, after-tax (1) (17) (15) (10) (10)
Amortization of purchased intangibles (57) (62) (61) (59) (58)

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

7

The Allstate Corporation
Allstate Protection Profitability Measures
($ in millions, except ratios) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Premiums written
Auto $ 8,349 $ 7,774 $ 7,860 $ 7,470 $ 7,562
Homeowners 2,534 2,775 3,145 3,008 2,281
Other personal lines 548 530 606 609 504
Commercial lines 227 248 285 297 294
Other business lines ^ 125 153 141 125 120
Total $ 11,783 $ 11,480 $ 12,037 $ 11,509 $ 10,761
Net premiums earned
Auto $ 7,908 $ 7,741 $ 7,545 $ 7,348 $ 7,081
Homeowners 2,810 2,720 2,642 2,566 2,490
Other personal lines 562 543 540 545 531
Commercial lines 232 249 296 295 283
Other business lines 123 127 134 120 113
Total $ 11,635 $ 11,380 $ 11,157 $ 10,874 $ 10,498
Underwriting income (loss)
Auto $ (346) $ (974) $ (1,315) $ (578) $ (147)
Homeowners (534) 197 266 (192) 400
Other personal lines (89) (107) (10) 11 18
Commercial lines (60) (190) (117) (135) (22)
Other business lines 29 40 3 31 31
Answer Financial 2 1 3 2 2
Total $ (998) $ (1,033) $ (1,170) $ (861) $ 282
Claims expense excluding catastrophe expense $ 668 $ 699 $ 675 $ 650 $ 619
Operating ratios and reconciliations to underlying ratios
Loss ratio 87.5 86.7 88.0 84.9 73.3
Effect of catastrophe losses (14.5) (6.8) (6.8) (10.2) (4.4)
Effect of prior year non-catastrophe reserve reestimates (0.3) (2.5) (6.8) (3.8) (1.5)
Underlying loss ratio * 72.7 77.4 74.4 70.9 67.4
Expense ratio 21.1 22.4 22.5 23.0 24.0
Effect of amortization of purchased intangibles (0.5) (0.6) (0.6) (0.5) (0.5)
Underlying expense ratio * 20.6 21.8 21.9 22.5 23.5
Effect of advertising expense (1.3) (1.3) (1.7) (2.3) (3.3)
Effect of restructuring and related charges (0.2) (0.2) (0.1) - 0 (0.1)
Adjusted underwriting expense ratio * 19.1 20.3 20.1 20.2 20.1
Combined ratio 108.6 109.1 110.5 107.9 97.3
Underlying combined ratio * 93.3 99.2 96.3 93.4 90.9
Claims expense ratio excluding catastrophe expense 5.7 6.1 6.1 6.0 5.9

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

8

The Allstate Corporation
Allstate Protection Impact of Net Rate Changes Implemented on Premiums Written
Three months ended March 31, 2023 Three months ended December 31, 2022
Number of locations (1) Total brand (%) (2) (3) Location specific (%) (4) Number of locations Total brand (%) (3) Location specific (%)
Allstate brand
Auto 28 1.7 8.4 38 6.1 11.2
Homeowners 18 4.9 13.7 16 2.1 11.3
National General
Auto 28 1.9 5.6 26 4.3 8.5
Homeowners 7 1.5 12.2 16 4.4 15.7
Three months ended September 30, 2022 Three months ended June 30, 2022
Number of locations Total brand (%) (3) Location specific (%) Number of locations Total brand (%) (3) Location specific (%)
Allstate brand
Auto 19 4.7 14.0 30 2.5 8.7
Homeowners 9 0.5 6.9 13 0.7 5.4
National General
Auto 19 1.1 3.2 19 2.7 6.0
Homeowners 7 1.6 10.8 10 0.7 6.5
(1) Refers to the number of U.S. states, the District of Columbia or Canadian provinces where rate changes have been implemented. Allstate brand operates in 50 states, the District of Columbia, and 5 Canadian provinces. National General operates in 50 states and the District of Columbia.
(2) Represents the impact in the locations where rate changes were implemented during the period as a percentage of total brand prior year-end premiums written.
(3) Total Allstate brand implemented auto insurance rate increases totaled $454 million in the first quarter of 2023, after implementing $1.48 billion, $1.14 billion and $601 million of rate increases in the fourth, third and second quarters of 2022, respectively.
(4) Represents the impact in the locations where rate changes were implemented during the period as a percentage of its respective total prior year-end premiums written in those same locations.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

9

The Allstate Corporation
Auto Profitability Measures and Statistics
($ in millions, except ratios) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Allstate Protection
Premiums written $ 8,349 $ 7,774 $ 7,860 $ 7,470 $ 7,562
Net premiums earned 7,908 7,741 7,545 7,348 7,081
Underwriting income (loss) (346) (974) (1,315) (578) (147)
Operating ratios and reconciliations to underlying ratios
Loss ratio 83.4 90.6 95.3 84.9 77.6
Effect of catastrophe losses (1.2) (0.5) (4.4) (1.5) (0.6)
Effect of prior year non-catastrophe reserve reestimates ("PYRR") (0.1) (2.3) (8.5) (3.8) (2.1)
Underlying loss ratio * 82.1 87.8 82.4 79.6 74.9
Expense ratio 21.0 22.0 22.1 23.0 24.5
Effect of amortization of purchased intangibles (0.5) (0.6) (0.5) (0.5) (0.6)
Underlying expense ratio * 20.5 21.4 21.6 22.5 23.9
Combined ratio 104.4 112.6 117.4 107.9 102.1
Effect of catastrophe losses (1.2) (0.5) (4.4) (1.5) (0.6)
Effect of PYRR (0.1) (2.3) (8.5) (3.8) (2.1)
Effect of amortization of purchased intangibles ("APIA") (0.5) (0.6) (0.5) (0.5) (0.6)
Underlying combined ratio * 102.6 109.2 104.0 102.1 98.8
Allstate brand
Premiums written $ 6,826 $ 6,560 $ 6,704 $ 6,374 $ 6,308
Net premiums earned 6,660 6,544 6,416 6,253 6,073
Underwriting income (loss) (332) (909) (1,222) (578) (137)
Loss ratio 84.3 92.2 97.1 86.4 78.3
Effect of catastrophe losses and non-catastrophe PYRR (0.6) (3.0) (13.6) (5.5) (2.9)
Underlying loss ratio * 83.7 89.2 83.5 80.9 75.4
Combined ratio 105.0 113.9 119.0 109.2 102.3
Effect of catastrophe losses, non-catastrophe PYRR and APIA (0.8) (3.1) (13.7) (5.6) (3.0)
Underlying combined ratio * 104.2 110.8 105.3 103.6 99.3
Average premium - gross written ^ ($) 726 698 667 644 626
Annualized average earned premium ^ ($) 1,260 1,209 1,174 1,138 1,106
Annualized average earned premium ^ (% change year-over-year) 13.9 10.1 7.2 3.4 0.4
Average underlying loss (incurred pure premium) * ^ ($) 1,055 1,078 981 921 834
Average underlying loss (incurred pure premium) * ^ (% change year-over-year) 26.5 29.3 22.6 25.1 34.7
Renewal ratio ^ (%) 85.7 86.0 87.0 87.5 87.5
National General
Premiums written $ 1,523 $ 1,214 $ 1,156 $ 1,096 $ 1,254
Net premiums earned 1,248 1,197 1,129 1,095 1,008
Underwriting income (loss) (14) (65) (93) - 0 (10)
Combined ratio 101.1 105.4 108.2 100.0 101.0
Effect of catastrophe losses, non-catastrophe PYRR and APIA (1) (7.1) (4.8) (11.4) (6.6) (5.6)
Underlying combined ratio * 94.0 100.6 96.8 93.4 95.4
(1) Includes 2.4 points and 3.4 points in the first quarter of 2023 and 2022, respectively, related to the effect of amortization of purchased intangibles.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

10

The Allstate Corporation
Homeowners Profitability Measures and Statistics
($ in millions, except ratios) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Allstate Protection
Premiums written $ 2,534 $ 2,775 $ 3,145 $ 3,008 $ 2,281
Net premiums earned 2,810 2,720 2,642 2,566 2,490
Underwriting income (loss) (534) 197 266 (192) 400
Operating ratios and reconciliations to underlying ratios
Loss ratio 98.5 70.4 67.4 84.5 61.8
Effect of catastrophe losses (51.6) (22.2) (13.4) (35.6) (15.4)
Effect of prior year non-catastrophe reserve reestimates 0.5 (0.7) (1.9) (1.9) (0.1)
Underlying loss ratio * 47.4 47.5 52.1 47.0 46.3
Expense ratio 20.5 22.4 22.5 23.0 22.1
Effect of amortization of purchased intangibles (0.3) (0.4) (0.5) (0.5) (0.4)
Underlying expense ratio * 20.2 22.0 22.0 22.5 21.7
Combined ratio 119.0 92.8 89.9 107.5 83.9
Effect of catastrophe losses (51.6) (22.2) (13.4) (35.6) (15.4)
Effect of prior year non-catastrophe reserve reestimates ("PYRR") 0.5 (0.7) (1.9) (1.9) (0.1)
Effect of amortization of purchased intangibles ("APIA") (0.3) (0.4) (0.5) (0.5) (0.4)
Underlying combined ratio * 67.6 69.5 74.1 69.5 68.0
Allstate brand
Premiums written $ 2,210 $ 2,448 $ 2,803 $ 2,665 $ 2,020
Net premiums earned 2,488 2,408 2,350 2,281 2,210
Underwriting income (loss) (508) 197 268 (132) 368
Combined ratio 120.4 91.8 88.6 105.8 83.3
Effect of catastrophe losses, non-catastrophe PYRR and APIA (54.5) (23.7) (16.0) (38.8) (16.6)
Underlying combined ratio * 65.9 68.1 72.6 67.0 66.7
Average premium - gross written ($) 1,706 1,668 1,635 1,590 1,554
Renewal ratio (%) 86.3 86.7 87.4 86.9 86.2
National General
Premiums written $ 324 $ 327 $ 342 $ 343 $ 261
Net premiums earned 322 312 292 285 280
Underwriting income (loss) (26) - 0 (2) (60) 32
Combined ratio 108.1 100.0 100.7 121.1 88.6
Effect of catastrophe losses, non-catastrophe PYRR and APIA (1) (27.4) (20.2) (13.7) (31.6) (10.7)
Underlying combined ratio * 80.7 79.8 87.0 89.5 77.9
(1) Includes 1.3 points and 2.5 points in the first quarter of 2023 and 2022, respectively, related to the effect of amortization of purchased intangibles.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

11

The Allstate Corporation
Protection Services Segment Results
($ in millions) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Protection Services
Net premiums written $ 619 $ 742 $ 657 $ 670 $ 630
Premiums earned $ 538 $ 520 $ 504 $ 488 $ 483
Other revenue 84 78 84 91 94
Intersegment insurance premiums and service fees 33 31 39 38 41
Net investment income 16 14 13 12 9
Claims and claims expense (153) (140) (141) (128) (123)
Amortization of deferred policy acquisition costs (251) (243) (236) (228) (221)
Operating costs and expenses (221) (229) (214) (213) (218)
Restructuring and related charges (1) (1) (1) - 0 - 0
Income tax expense on operations (11) 6 (13) (16) (12)
Less: net income (loss) attributable to noncontrolling interest - 0 (2) - 0 1 - 0
Adjusted net income (1) 34 38 35 43 53
Depreciation 6 6 6 6 6
Restructuring and related charges 1 1 1 - 0 - 0
Income tax expense on operations 11 (6) 13 16 12
Adjusted earnings before taxes, depreciation and restructuring * $ 52 $ 39 $ 55 $ 65 $ 71
Allstate Protection Plans
Net premiums written $ 439 $ 570 $ 452 $ 456 $ 429
Premiums earned $ 361 $ 346 $ 330 $ 318 $ 313
Revenue ^ 385 367 349 338 329
Claims and claims expense (105) (94) (92) (82) (77)
Amortization of deferred policy acquisition costs (141) (134) (129) (123) (119)
Other costs and expenses ^ (103) (102) (90) (83) (80)
Restructuring and related charges - 0 (1) - 0 - 0 - 0
Income tax expense on operations (8) 4 (9) (13) (10)
Less: net income (loss) attributable to noncontrolling interest - 0 (2) - 0 1 - 0
Adjusted net income $ 28 $ 42 $ 29 $ 36 $ 43
Allstate Dealer Services
Revenue $ 148 $ 145 $ 143 $ 139 $ 135
Adjusted net income 7 8 10 8 9
Allstate Roadside
Revenue $ 64 $ 64 $ 65 $ 64 $ 65
Adjusted net income 4 3 1 1 2
Arity
Revenue $ 37 $ 33 $ 49 $ 52 $ 62
Adjusted net income (loss) (4) (7) (2) (1) (1)
Allstate Identity Protection
Revenue $ 37 $ 34 $ 34 $ 36 $ 36
Adjusted net income (loss) (1) (8) (3) (1) - 0
(1) Adjusted net income is the GAAP segment measure.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

12

The Allstate Corporation
Allstate Health and Benefits Segment Results and Other Statistics (1)
($ in millions) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Allstate Health and Benefits
Premiums $ 433 $ 403 $ 434 $ 435 $ 440
Contract charges 30 33 29 30 28
Other revenue (2) 101 125 90 92 95
Net investment income 19 19 17 16 17
Accident, health and other policy benefits (265) (257) (252) (265) (268)
Amortization of deferred policy acquisition costs (41) (29) (33) (35) (39)
Operating costs and expenses (203) (220) (207) (185) (202)
Restructuring and related charges (4) (1) 1 (2) - 0
Income tax expense on operations (14) (15) (16) (19) (14)
Adjusted net income ^ $ 56 $ 58 $ 63 $ 67 $ 57
Interest credited to contractholder funds (8) (8) (8) (9) (8)
Benefit ratio ^ 55.5 % 57.1 % 52.7 % 55.1 % 55.6 %
Premiums and contract charges
Employer voluntary benefits ^ $ 255 $ 256 $ 257 $ 257 $ 263
Group health ^ 107 100 96 95 94
Individual health ^ 101 80 110 113 111
Total $ 463 $ 436 $ 463 $ 465 $ 468
(1) Prior periods have been recast to reflect the impact of the adoption of FASB guidance revising the accounting for certain long-duration insurance contracts.
(2) Reflects commission revenue, administrative fees, agency fees and technology fees from the group health and individual health business.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

13

The Allstate Corporation
Corporate and Other Segment Results
($ in millions) Three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Other revenue $ 23 $ 23 (1) $ 23 $ 25 $ 24
Net investment income 31 30 28 28 10
Operating costs and expenses (48) (63) (65) (75) (59)
Restructuring and related charges (1) (2) - 0 (1) - 0
Interest expense (86) (86) (83) (83) (83)
Income tax benefit on operations 18 24 19 26 23
Preferred stock dividends (26) (26) (26) (27) (26)
Adjusted net loss ^ $ (89) $ (100) $ (104) $ (107) $ (111)
(1) Excludes $83 million related to the gain on sale of headquarters in the fourth quarter of 2022 reported as other revenue.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

14

The Allstate Corporation
Investment Position and Results
($ in millions) As of or for the three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Investment position
Fixed income securities, at fair value $ 44,103 $ 42,485 $ 41,715 $ 41,282 $ 40,745
Equity securities ^ 2,174 4,567 4,723 4,681 5,315
Mortgage loans, net 781 762 833 848 855
Limited partnership interests ^ 7,971 8,114 7,907 7,943 7,977
Short-term, at fair value 6,722 4,173 4,030 4,384 4,344
Other investments, net 1,724 1,728 1,798 1,917 2,532
Total $ 63,475 $ 61,829 $ 61,006 $ 61,055 $ 61,768
Net investment income
Fixed income securities $ 390 $ 366 $ 323 $ 299 $ 267
Equity securities 11 32 30 34 36
Mortgage loans 8 8 8 9 8
Limited partnership interests 134 144 325 224 292
Short-term investments 66 40 30 10 2
Other investments 41 42 38 42 40
Investment income, before expense 650 632 754 618 645
Investment expense (75) (75) (64) (56) (51)
Net investment income $ 575 $ 557 $ 690 $ 562 $ 594
Pre-tax yields on fixed income securities ^ 3.4 % 3.2 % 2.9 % 2.8 % 2.6 %
Net gains (losses) on investments and derivatives, pre-tax by transaction type
Sales $ (120) $ (227) $ (175) $ (303) $ (127)
Credit losses (12) (24) (6) (13) (11)
Valuation change of equity investments 198 361 (285) (689) (447)
Valuation change and settlements of derivatives (52) (15) 299 272 318
Total $ 14 $ 95 $ (167) $ (733) $ (267)
Total retuon investment portfolio ^
Net investment income 0.9 % 0.9 % 1.1 % 0.9 % 0.9 %
Valuation-interest bearing 1.1 1.0 (1.4) (2.6) (3.1)
Valuation-equity investments 0.4 0.6 (0.5) (1.1) (0.6)
Total 2.4 % 2.5 % (0.8) % (2.8) % (2.8) %
Fixed income securities portfolio duration ^ (in years) 4.0 3.6 3.6 3.8 3.8
Fixed income securities portfolio duration including interest rate derivative positions (in years) 4.0 3.4 3.0 3.2 3.1
Fixed income and short-term investments duration including interest rate derivative positions (in years) 3.5 3.1 2.8 2.9 2.8

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

15

The Allstate Corporation
Investment Position and Results by Strategy
($ in millions) As of or for the three months ended
March 31, 2023 Dec. 31, 2022 Sept. 30, 2022 June 30, 2022 March 31, 2022
Investment Position
Market-based ^
Interest-bearing investments ^ $ 52,337 $ 48,114 $ 47,364 $ 47,457 $ 47,480
Equity securities 1,765 4,112 4,283 4,259 4,915
LP and other alternative investments ^ 214 519 469 485 548
Total $ 54,316 $ 52,745 $ 52,116 $ 52,201 $ 52,943
Performance-based ^
Private equity (1) $ 7,168 $ 6,965 $ 6,980 $ 6,996 $ 6,943
Real estate 1,991 2,119 1,910 1,858 1,882
Total $ 9,159 $ 9,084 $ 8,890 $ 8,854 $ 8,825
Investment income
Market-based
Interest-bearing investments $ 481 $ 432 $ 376 $ 336 $ 296
Equity securities 14 34 25 29 26
LP and other alternative investments 13 - 0 5 4 3
Investment income, before expense 508 466 406 369 325
Investee level expenses (1) (2) (4) (1) (2)
Income for yield calculation $ 507 $ 464 $ 402 $ 368 $ 323
Pre-tax yield 3.6 % 3.3 % 2.9 % 2.7 % 2.4 %
Performance-based
Private equity $ 105 $ 110 $ 311 $ 129 $ 248
Real estate 37 56 37 120 72
Investment income, before expense 142 166 348 249 320
Investee level expenses (16) (19) (13) (13) (14)
Income for yield calculation $ 126 $ 147 $ 335 $ 236 $ 306
Pre-tax yield 5.5 % 6.5 % 15.2 % 10.7 % 14.1 %
Total retuon investments portfolio
Market-based 2.6 % 2.8 % (1.5) % (3.7) % (3.8) %
Performance-based 1.6 0.9 3.6 3.1 4.0
Internal rate of retu^
Performance-based
10 year 12.7 % 12.9 % 13.0 % 13.0 % 13.0 %
5 year 12.1 13.1 13.3 14.1 13.9
3 year 16.0 15.7 14.9 15.2 15.0
1 year 5.9 11.2 17.4 24.6 27.7
(1) Includes infrastructure investments of $1.06 billion as of March 31, 2023.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

16

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.
Adjusted net income is net income (loss) applicable to common shareholders, excluding:
• Net gains and losses on investments and derivatives
• Pension and other postretirement remeasurement gains and losses
• Amortization or impairment of purchased intangibles
• Gain or loss on disposition
• Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
• Related income tax expense or benefit of these items
Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income. We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of net gains and losses on investments and derivatives, pension and other postretirement remeasurement gains and losses, amortization or impairment of purchased intangibles, gain or loss on disposition and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Net gains and losses on investments and derivatives, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Gain or loss on disposition is excluded because it is non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of adjusted net income to net income (loss) applicable to common shareholders is provided in the schedule, "Contribution to Income".
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 combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures".
Underlying expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of amortization or impairment of purchased intangibles on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the amortization or impairment of purchased intangible assets. Amortization or Impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the expense ratio. The underlying expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business. A reconciliation of underlying expense ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures".
Adjusted underwriting expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of advertising expense, restructuring and related charges and amortization or impairment of purchased intangibles on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the advertising expense, restructuring and related charges and amortization or impairment of purchased intangibles. Advertising expense is excluded as it may vary significantly from period to period based on business decisions and competitive position. Restructuring and related charges are excluded because these items are not indicative of our business results or trends. Amortization or impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price. These are not indicative of our business results or trends. A reduction in expenses enables investment flexibility that can drive growth. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the expense ratio. The adjusted underwriting expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business.
Adjusted expense ratio is a non-GAAP ratio, which is computed as the combination of the adjusted underwriting expense ratio and claims expense ratio excluding catastrophe expense. We believe it is useful for investors to evaluate this ratio which is linked to a long-term expense ratio improvement commitment through 2024. The most directly comparable GAAP measure is the expense ratio. The adjusted expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business.
Underlying combined ratio is a non-GAAP ratio, which is the sum of the underlying loss and underlying expense ratios. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedule "Property-Liability Results", "Auto Profitability Measures" and "Homeowners Profitability Measures".

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

17

Definitions of Non-GAAP Measures (continued)
Protection Services adjusted earnings before taxes, depreciation and restructuring, is a non-GAAP measure, which is computed as adjusted net income (loss), excluding taxes, depreciation and restructuring. Adjusted net income (loss) is the GAAP measure that is most directly comparable to adjusted earnings before taxes, depreciation and restructuring. We use adjusted earnings before taxes, depreciation and restructuring, as an important measure to evaluate Protection Services' results of operations. We believe that the measure provides investors with a valuable measure of Protection Services' ongoing performance because it reveals trends that may be obscured by the taxes, depreciation and restructuring expenses. Taxes, depreciation and restructuring are excluded because these are not directly attributable to the underlying operating performance of Protection Services' segment. Adjusted earnings before taxes, depreciation and restructuring highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of adjusted net income (loss) to assess our performance. We believe it is useful for investors to evaluate adjusted net income (loss), adjusted earnings before taxes, depreciation and restructuring, and their components separately and in the aggregate when reviewing and evaluating Protection Services segment's performance. Adjusted earnings before taxes, depreciation and restructuring should not be considered a substitute for adjusted net income (loss) and does not reflect the overall profitability of our business. A reconciliation of adjusted net income (loss) to adjusted earnings before taxes, depreciation and restructuring, is provided in the schedule, "Protection Services Segment Results".
Adjusted net income retuon Allstate common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders' equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Retuon Allstate common shareholders' equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders' equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and retuon Allstate common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with retuon Allstate common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income retuon Allstate common shareholders' equity from retuon Allstate common shareholders' equity is the transparency and understanding of their significance to retuon common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income retuon Allstate common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income retuon Allstate common shareholders' equity and retuon Allstate common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income retuon common shareholders' equity results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management's utilization of capital. Adjusted net income retuon Allstate common shareholders' equity should not be considered a substitute for retuon Allstate common shareholders' equity and does not reflect the overall profitability of our business. A reconciliation of retuon Allstate common shareholders' equity and adjusted net income retuon Allstate common shareholders' equity can be found in the schedule, "Retuon Allstate Common Shareholders' Equity".
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAP measure. It is calculated by dividing Allstate common shareholders' equity after excluding the impact of unrealized net capital gains and losses on fixed income securities by total common shares outstanding plus dilutive potential common shares outstanding. We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common share to identify and analyze the change in net worth applicable to management efforts between periods. We believe the non-GAAP ratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business. A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share and Debt to Capital".

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

18

Glossary
Consolidated Operations
Accident and health insurance premiums and contract charges are reported in the Allstate Health and Benefits segment and include employer voluntary benefits, group health and individual health products.
Adjusted net income is the GAAP segment measure used for the Protection Services, Allstate Health and Benefits, and Corporate and Other segments.
Average Allstate common shareholders' equity and average adjusted Allstate common shareholders' equity are determined using a two-point average, with the beginning and ending Allstate common shareholders' equity and Allstate adjusted common shareholders' equity, respectively, for the twelve-month period as data points.
Other revenue primarily represents fees collected from policyholders relating to premium installment payments, commissions on sales of non-proprietary products, sales of identity protection services, fee-based services and other revenue transactions.
Property and casualty insurance premiums are reported in the Allstate Protection and Protection Services segments and include auto, homeowners, other personal lines and commercial lines insurance products, as well as consumer product protection plans, roadside assistance and finance and insurance products.
Property-Liability
Annualized average earned premium is calculated by annualizing net earned premium reported in the quarter and year-to-date divided by policies in force at quarter end.
Average premium - gross written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, which is generally 6 months for auto and 12 months for homeowners.
Average underlying loss (incurred pure premium) is calculated as the underlying loss ratio multiplied by the annualized average earned premium.
Claims expense ratio excluding catastrophe expense: Incurred loss adjustment expenses, net of reinsurance, excluding expenses related to catastrophes. These expenses are embedded within the loss ratio.
Expense ratio: Other revenue is deducted from other costs and expenses in the expense ratio calculation.
Other business lines primarily represent commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products, and lender-placed products and related services.
Renewal ratio: Renewal policy item counts issued during the period, based on contract effective dates, divided by the total policy item counts issued generally 6 months prior for auto or 12 months prior for homeowners.
Protection Services
Other costs and expenses may include amortization of deferred policy acquisition costs, operating costs and expenses, and restructuring and related charges.
Revenue may include net premiums earned, intersegment insurance premiums and service fees, other revenue, revenue earned from external customers and net investment income.
Allstate Health and Benefits
Benefit ratio is accident, health and other policy benefits less interest credited to contractholder funds, divided by premiums and contract charges.
Employer voluntary benefits includes supplemental life and health products offered through workplace enrollment.
Group health includes health products and administrative services sold to employers.
Individual health includes short-term medical and other health products sold directly to individuals.
Investments
Duration measures the price sensitivity of assets and liabilities to changes in interest rates.
Equity securities include investments in exchange traded and mutual funds whose underlying investments are fixed income securities.
Interest-bearing investments comprise fixed income securities, mortgage loans, short-term investments, and other investments including bank loans and derivatives.
Internal rate of retuis one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of retuon the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments.
Limited partnership interests: Income from equity method of accounting LP is generally recognized on a three-month delay due to the availability of the investee financial statements.
LP and other investments comprise limited partnership interests and other alternative investments, including real estate investments classified as other investments. Market-based investments include publicly traded equity securities classified as limited partnerships.
Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities.
Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate, most of which were limited partnerships.
Pre-tax yields: Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the ending investment balances of the current and prior quarter. Year-to-date pre-tax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate and other investments is net of investee level expenses (asset level operating expenses reported in investment expense). Fixed income securities investment balances exclude unrealized capital gains and losses. Equity securities investment balances use cost in the calculation.
Total retuon investment portfolio is calculated from GAAP results, including the total of net investment income, net gains and losses on investments and derivative instruments, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage and bank loans divided by the average fair value balances.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11&A

App A

The Allstate Corporation
Historical Results - As Adjusted
($ in millions) Three months ended Twelve months ended
Sept. 30, 2022 June 30, 2022 March 31, 2022 Dec. 31, 2022 Dec. 31, 2021
Condensed Consolidated Statements of Operations
Revenues
Accident and health insurance premiums and contract charges $ 1,832 $ 1,834
Total revenues 51,411 50,601
Costs and expenses
Accident, health and other policy benefits 1,042 1,060
Amortization of deferred policy acquisition costs 6,634 6,236
Total costs and expenses 53,241 44,141
Income (loss) from operations before income tax expense (1,830) 6,466
Income tax expense (benefit) (488) 1,292
Net income (loss) from continuing operations (1,342) 5,174
Net income (loss) (1,342) 1,581
Net income attributable to Allstate (1,289) 1,614
Net income (loss) applicable to common shareholders (1,394) 1,500
Earnings per common share:
Net income (loss) from continuing operations applicable to common shareholders per common share - Basic (5.14) 17.28
Net income (loss) applicable to common shareholders per common share - Basic (5.14) 5.09
Net income (loss) from continuing operations applicable to common shareholders per common share - Diluted (1) (5.14) 17.03
Net income (loss) applicable to common shareholders per common share - Diluted (1) (5.14) 5.01
Other Financial Information
Adjusted net income (loss) applicable to common shareholders * (239) 4,048
Adjusted net income (loss) applicable to common shareholders per common share - Diluted * (1) (0.88) 13.53
Condensed Consolidated Statements of Comprehensive Income
Net income (loss) $ (674) $ (1,022) $ 650 (1,342) 1,581
Other comprehensive (loss) income, after tax
Changes in:
Unrealized net capital gains and losses (789) (1,144) (1,594) (2,853) (2,582)
Discount rate for reserve for future policy benefits 52 85 95 228 (229)
Other comprehensive (loss) income, after tax (833) (1,121) (1,514) (2,818) (2,878)
Comprehensive (loss) income (1,507) (2,143) (864) (4,160) (1,297)
Comprehensive (loss) income attributable to Allstate (1,486) (2,126) (842) (4,087) (1,261)
Nine months ended Sept. 30, 2022 Six months ended June 30, 2022 Three months ended March 31, 2022 Twelve months ended
Dec. 31, 2022 Dec. 31, 2021
Condensed Consolidated Statements of Cash Flows
Cash flows from operating activities
Net income (loss) $ (1,046) $ (372) $ 650 $ (1,342) $ 1,581
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Changes in:
Policy benefits and other insurance reserves 3,464 1,222 (111) 4,445 1,996
Unearned premiums 2,255 1,201 390 2,539 1,608
Deferred policy acquistion costs (567) (315) (103) (713) (624)
Reinsurance recoverables, net 99 645 333 451 (1,570)
Income taxes (555) (288) 93 (715) 353
Other operating assets and liabilities (381) (788) (574) (541) (1,368)
Net cash provided by operating activities 4,151 2,105 432 5,121 5,116
(1) 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.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11App A

App B

The Allstate Corporation
Historical Results - As Adjusted
($ in millions) As of or for the three months ended As of or for the twelve months ended
Sept. 30, 2022 June 30, 2022 March 31, 2022 Dec. 31, 2022 Dec. 31, 2021
Condensed Consolidated Statements of Financial Position
Assets
Deferred policy acquistion costs $ 5,291 $ 5,049 $ 4,843 $ 5,442 $ 4,738
Reinsurance and indemnification recoverables, net 9,972 9,438 9,764 9,619 10,105
Deferred income taxes 489 131 - 0 382 - 0
Other assets, net 6,108 6,350 6,057 5,904 6,084
Total assets 97,701 96,443 97,240 97,989 99,535
Liabilities
Reserve for future policy benefits 1,318 1,466 1,566 1,322 1,695
Contractholder funds 893 892 891 879 890
Unearned premiums 22,015 21,015 20,235 22,299 19,833
Deferred income taxes - 0 - 0 366 - 0 770
Total liabilities 80,130 76,470 74,239 80,626 74,643
Equity
Retained income 51,499 52,412 53,686 50,970 53,288
Accumulated other comprehensive income:
Unrealized net capital gains and losses (2,929) (2,140) (996) (2,255) 598
Discount rate for reserve for future policy benefits 3 (49) (134) (1) (229)
Total AOCI (3,042) (2,209) (1,088) (2,392) 426
Total Allstate shareholders' equity 17,683 20,064 23,075 17,488 24,944
Total equity 17,571 19,973 23,001 17,363 24,892
Total liabilites and equity 97,701 96,443 97,240 97,989 99,535
Condensed Consolidated Statements of Shareholders' Equity
Retained income
Balance, beginning of period 52,412 53,686 53,288 53,288 52,767
Cumulative effect of change in accounting principle - 0 - 0 - 0 - 0 21
Net income (loss) (659) (1,013) 660 (1,289) 1,614
Balance, end of period 51,499 52,412 53,686 50,970 53,288
Accumulated other comprehensive income (loss)
Balance, beginning of period (2,209) (1,088) 426 426 3,304
Change in unrealized net capital gains and losses (789) (1,144) (1,594) (2,853) (2,582)
Change in discount rate for reserve for future policy benefits 52 85 95 228 (229)
Balance, end of period (3,042) (2,209) (1,088) (2,392) 426
Total Allstate shareholders' equity 17,683 20,064 23,075 17,488 24,944
Total equity 17,571 19,973 23,001 17,363 24,892
Other Financial Information
Book value per common share $ 80.70
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 78.58
Ratio of debt to Allstate shareholders' equity 32.0 %
Ratio of debt to capital resources 24.2
Net income retuon average Allstate common shareholders' equity (1) 5.9
Adjusted net income retuon average Allstate common shareholders' equity * (1) 17.1
(1) Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period.

&"Calibri,Regular"&11&K0033A0The Allstate Corporation 1Q23 Supplement &"Calibri,Regular"&11App B

Disclaimer

The Allstate Corporation published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2023 04:52:15 UTC.

Advisor News

More Advisor News

Annuity News

Sponsor
More Annuity News

Health/Employee Benefits News

More Health/Employee Benefits News

Life Insurance News

Sponsor
More Life Insurance News