Q3 2023 Earnings Call Presentation

The Allstate Corporation

Third Quarter 2023 Earnings Presentation

11.02.2023

Forward-looking statements and non-GAAP financial information

Allstate's Strategy To Create Shareholder Value

Executing Comprehensive Approach to Restore Auto Margins

• Increasing in-person inspections

Allstate's Industry-Leading Returns in Auto Insurance

Allstate's capabilities and business model have resulted in an auto insurance combined ratio of ~96.5 over the last 10 years (2013-2022)(1)

• Generated average underwriting income of ~$800 million annually from 2013-2022(1)
• Allstate auto insurance combined ratio approximately 5.5 points better than industry average, or $1.3 billion of incremental profit annually
• Competitors Progressive, GEICO and Travelers are the only other top ten carriers to generate underwriting profit over this period(1)

Current competitive environment supports execution of profit improvement plan

• Auto claim severities have increased significantly for major competitors and the overall industry
• Allstate and the industry have significantly raised auto insurance rates since 2019
• Expense reductions occurring broadly across the industry, including lower advertising
• The impact of actions on policies in force dependent on degree of individual company profit and growth strategies

1. Allstate combined ratio and underwriting income represents Allstate Protection auto GAAP results for 2013-2022 with impact of pension restatements excluded prior to 2016. Industry information represents U.S. statutory results per S&P Global Market Intelligence from 2013-2022

Pursuing Health and Benefits Divestiture

Rationale

• Combining Allstate and National General businesses was integral to National General acquisition plan. Successful integration positions business for additional growth
• Divestiture is being pursued since substantial value can be realized when aligned with a broader set of complementary businesses and product offerings

Health and Benefits Overview

• Allstate Health and Benefits operates three successful businesses protecting people from financial uncertainty due to illness, injury, or loss of life:
• • Preeminentvoluntary benefits provider with a comprehensive product offering with annualized premiums and contract charges of $1.0 billion and $300+ million of new sales
  • Group health provider in the small case size market with $700+ million of premiums and fee revenue and $400+ million in new sales
  • Individual health products with broad distribution of both underwritten and third-party products
• Consistent profitable growth with revenues(1) of $2.3 billion and adjusted net income (2) of $240 million for the trailing twelve months

• Employer Voluntary Benefits: 3.7 million
• Group Health: 134 thousand
• Individual Health: 412 thousand

1. Revenues exclude the impact of net gains and losses on investments and derivatives

Transformative Growth Implementation Progressing

Multi-year initiative to build a low-cost digital insurer with broad distribution

• Improve customer value with affordable, simple and connected protection
• Expand customer access through exclusive agents, independent agents and direct channel

Three pre-packaged

affordable, simple options

Property-Liability Earned Premium Increases and Expense Reductions Improve Margins

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

Auto Insurance Premium Growth Outpacing Underlying Costs

1. Adjusts 2022 quarterly underlying combined ratios* to reflect full year average current report year ultimate severities
2. Adjusts 2023 quarterly underlying combined ratios* to reflect Q3 average current report year ultimate severities