Q4 2021 Earnings Call Presentation
Fourth Quarter 2021 Earnings Presentation
2 . 0 3 . 2 0 2 2
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 or investor supplement.
Additional information on factors that could cause results to differ materially from this presentation is available in the 2020 Form 10-K, Form 10-Q for
P A G E 1
Expanding Investor Communications in 2022
- Adding quarterly non-earnings special topic calls to provide deeper insights into significant strategic or operational topics
- Enhancing Property-Liability rate disclosures by posting monthly implemented rate activity on the investor relations website to provide additional information on premium growth
Special Topic Calls
- 60-minuteinvestor calls in addition to quarterly earnings calls
- Initial call to take place in March
- First topic of discussion will focus on the current auto insurance operating environment
- Other topics may include homeowners insurance, independent agent channel, expanding Protection Services and investments
Rate Disclosures
- Price increases to address rising loss costs will continue throughout 2022
- Disclosing implemented auto rate actions on the Allstate investor relations website beginning in
February 2022 and continuing until margins achieve targeted levels - Rate disclosures will be posted on the third Thursday of every month in conjunction with catastrophe losses
- Posting of implemented rate changes will occur regardless of whether there is a catastrophe loss release in the month
P A G E 2
Allstate's Execution and Innovation Create Sustainable Shareholder Value
Increase Personal
Property-Liability Market Share
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Operating Priorities |
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• |
Better Serve Customers |
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Leveraging Allstate brand, |
• |
Grow Customer Base |
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customer base and capabilities |
• |
Achieve Target Returns on Capital |
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Proactively Manage Investments |
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• Build Long-Term Growth Platforms |
Expand Protection
Services
P A G E 3
Allstate Generated Strong Results in 2021
- Total revenues of
$13.0 billion in the fourth quarter and$50.6 billion for the full year 2021
- Property-Liabilityinsurance premiums increased, reflecting the acquisition of National General and growth in homeowners insurance
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- Strong performance-based results drove significantly higher net investment income
- Net income of
$790 million in the fourth quarter and$1.5 billion for the full year 2021 -
- Loss on sale of life and annuity businesses reduced income by
$4.1 billion for the full year 2021
- Loss on sale of life and annuity businesses reduced income by
- Adjusted net income* of
$796 million ($2.75 per share) in the fourth quarter and$4.0 billion ($13.48 per share) for the full year
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Three months ended |
Twelve months ended |
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($ in millions, except per share data and ratios) |
2021 |
2020 |
Change |
2021 |
2020 |
Change |
|||||
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Total revenues |
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18.7% |
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20.7% |
|||||
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Property-Liability insurance premiums |
10,390 |
8,884 |
17.0% |
40,454 |
35,580 |
13.7% |
|||||
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Accident and health insurance premiums and contract charges |
459 |
262 |
75.2% |
1,821 |
1,094 |
66.5% |
|||||
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Net investment income |
847 |
660 |
28.3% |
3,293 |
1,590 |
107.1% |
|||||
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Net gains on investments and derivatives |
266 |
490 |
(45.7%) |
1,084 |
1,087 |
(0.3%) |
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Income applicable to common shareholders: |
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Net income |
|||||||||||
|
790 |
2,598 |
(69.6%) |
1,485 |
5,461 |
(72.8%) |
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Adjusted net income* |
796 |
1,592 |
(50.0%) |
4,033 |
4,510 |
(10.6%) |
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Per diluted common share |
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Net income |
2.73 |
8.45 |
(67.7%) |
4.96 |
17.31 |
(71.3%) |
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Adjusted net income* |
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2.75 |
5.18 |
(46.9%) |
13.48 |
14.29 |
(5.7%) |
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Retuon Allstate common shareholders' equity (trailing twelve months) |
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Net income applicable to common shareholders |
5.8% |
21.0% |
(15.2) pts |
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Adjusted net income* |
16.9% |
19.2% |
(2.3) pts |
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P A G E 4
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Attachments
Disclaimer
AM Best Affirms Credit Ratings of Cincinnati Financial Corporation and Most Subsidiaries
Q4 2021 Investor Supplement
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