Q2 2023 Earnings Call Presentation

U.S. Regulated Equity Markets (Alternative Disclosure) via PUBT

The Allstate Corporation

Second Quarter 2023 Earnings Presentation

08.02.2023

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 June 30, 2023, our most recent earnings release, and at the end of these slides. These materials are available on our website, www.allstateinvestors.com, under the "Financials" link.

The Allstate Corporation 2023

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

Second quarter 2023 highlights

Successfully implementing comprehensive plan to improve auto insurance profitability by:

Raising rates

1. Reducing expenses
1. Limiting growth
1. Enhancing claims processes
Severe weather resulted in a net loss of $1.4 billion
1. Property-Liabilitygenerated an underwriting loss of $2.1 billion reflecting $2.7 billion of catastrophe losses

Investment income of $610 million reflecting higher bond yields

1. Protection Services and Health and Benefits profit of $98 million
Advancing Transformative Growth plan
Expanding Allstate Protection Plans
Suspended share repurchases given net loss

The Allstate Corporation 2023

PAGE 2

Allstate Remains Focused on Improving Profitability

Revenues increased $1.76 billion primarily due to higher Property-

Liability earned premiums from 2022 and 2023 rate increases

		Three months ended June 30,		Six months ended June 30,

($ in millions, except per share data and ratios)	2023	2022	Change		2023	2022	Change

Total revenues		$13,979	$12,219	14.4%	$27,765	$24,555	13.1%
Property-Liability insurance premiums	11,921	10,874	9.6%	23,556	21,372	10.2%
Accident and health insurance premiums and contract charges	453	465	(2.6)%	916	933	(1.8)%
Net investment income		610	562	8.5%	1,185	1,156	2.5%
Net gains (losses) on investments and derivatives	(151)	(733)	(79.4)%	(137)	(1,000)	(86.3)%

Income applicable to common shareholders:
Net income (loss)	Benefited from higher fixed-income	(1,389)	(1,040)	33.6%	(1,735)	(406)	NM

Adjusted net income (loss)*	investment yields and balances	(1,162)	(207)	NM	(1,504)	523	NM
Per diluted common share(1)
Net income (loss)		(5.29)	(3.80)	39.2%	(6.59)	(1.47)	NM
Adjusted net income (loss)*		(4.42)	(0.75)	NM	(5.72)	1.87	NM
Retuon Allstate common shareholders' equity (trailing twelve months)
Net income (loss) applicable to common shareholders				(17.2)%	4.2% (21.4) pts
Adjusted net income (loss)*					(12.7)%	7.1% (19.8) pts

NM = Not meaningful

Underwriting loss in the second quarter reflects elevated catastrophe losses

and increased 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.

The Allstate Corporation 2023

PAGE 3

Property-Liability Earned Premium Increases Offset by Elevated Catastrophe Losses and Underlying Loss Cost Increases

Higher earned premium driven by auto and homeowners rate	Underwriting loss primarily driven by elevated
increases, partially offset by a decline in policies in force	catastrophe losses of $2.7 billion

Property-Liability statistics

($ in millions)

Premiums Earned

Policies in Force (in thousands) Catastrophe Losses Underwriting Income (Loss)

(% to premiums earned) Loss Ratio

Expense Ratio

Combined Ratio

Catastrophe Loss Ratio

Underlying Combined Ratio*

Three months ended		Six months ended
June 30, 2023		June 30, 2023

2023	Var to PY		2023	Var to PY
(%/$)		(%/$)


11,921	9.6%		23,556	10.2%

37,985	(1.6)%		-	-

2,696	1,588		4,387	2,817

(2,094)	(1,230)		(3,095)	(2,511)

97.1	12.2 pts	92.3	13.1 pts
20.5	(2.5) pts	20.8	(2.7) pts

117.6	9.7 pts	113.1	10.4 pts

22.6	12.4 pts	18.6	11.3 pts
92.9	(0.5) pts	93.1	0.9 pts

Property-Liability combined ratio components

											117.6
								106.6	108.6

											22.6
							0.5	7.1	14.5
						95.9
93.2				3.9
92.0					0.5	0.5

				87.6		8.3			0.3	1.6
8.7
7.3			0.6
0.1
					95.1
			-0.8	-0.47.9			0.8	93.3		92.9
				0.1
85.3	85.0		86.2
				79.4	0.2

2018	2019	2020		2021		2022	Q1 2023	Q2 2023
		Underlying combined ratio*	PYRR (1)	APIA (1)	Catastrophe losses

Underlying combined ratio improvement versus 2022 reflects

higher average premium and lower expenses

(1) Reflects combined ratio impact of non-catastrophe prior year reserve reestimates and amortization of purchased intangibles

The Allstate Corporation 2023

PAGE 4

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The Allstate Corporation published this content on 02 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2023 03:04:18 UTC.