Q4 2021 Investor Supplement
Investor Supplement
Fourth Quarter 2021
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.
Investor Supplement - Fourth Quarter 2021
Table of Contents
Consolidated Operations |
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||
Condensed Consolidated Statements of Operations |
1 |
Segment Results and Other Statistics |
12 |
Contribution to Income |
2 |
||
Book Value per Common Share and Debt to Capital |
3 |
Corporate and Other |
|
Retuon Allstate Common Shareholders' Equity |
4 |
Segment Results |
13 |
Policies in Force |
5 |
Investments |
|
Property-Liability |
|||
Investment Position and Results |
14 |
||
Results |
6 |
Investment Position and Results by Strategy |
15 |
Allstate Protection |
Definitions of Non-GAAP Measures |
||
Allstate Protection Profitability Measures |
7 |
16,17 |
|
Impact of Net Rate Changes Implemented on Premiums Written |
8 |
Glossary |
|
Auto Profitability Measures |
9 |
18 |
|
Homeowners Profitability Measures |
10 |
Items included in the glossary are denoted with a caret (^) the first time used. |
|
Protection Services |
|||
Segment Results |
11 |
Condensed Consolidated Statements of Operations
($ in millions, except per share data) |
Three months ended |
Twelve months ended |
|||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
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||||||||||||||||||||||||||||||||||
2021 |
2021 |
2021 |
2021 |
2020 |
2020 |
2020 |
2020 |
2021 |
2020 |
||||||||||||||||||||||||||
Revenues |
$ |
10,852 |
$ |
10,615 |
$ |
10,444 |
$ |
10,307 |
$ |
9,279 |
$ |
9,336 |
$ |
9,223 |
$ |
9,235 |
$ |
42,218 |
$ |
37,073 |
|||||||||||||||
Property and casualty insurance premiums ^ |
|||||||||||||||||||||||||||||||||||
Accident and health insurance premiums and contract charges ^ |
459 |
460 |
447 |
455 |
262 |
287 |
263 |
282 |
1,821 |
1,094 |
|||||||||||||||||||||||||
Other revenue ^ |
587 |
536 |
494 |
555 |
271 |
272 |
257 |
265 |
2,172 |
1,065 |
|||||||||||||||||||||||||
Net investment income |
847 |
764 |
974 |
708 |
660 |
464 |
220 |
246 |
3,293 |
1,590 |
|||||||||||||||||||||||||
Net gains (losses) on investments and derivatives |
266 |
105 |
287 |
426 |
490 |
319 |
440 |
(162) |
1,084 |
1,087 |
|||||||||||||||||||||||||
Total revenues |
13,011 |
12,480 |
12,646 |
12,451 |
10,962 |
10,678 |
10,403 |
9,866 |
50,588 |
41,909 |
|||||||||||||||||||||||||
Costs and expenses |
7,804 |
8,264 |
7,207 |
6,043 |
5,366 |
6,072 |
5,222 |
5,341 |
29,318 |
22,001 |
|||||||||||||||||||||||||
Property and casualty insurance claims and claims expense |
|||||||||||||||||||||||||||||||||||
Shelter-in-Place Payback expense |
- |
- |
29 |
- |
- |
- |
738 |
210 |
29 |
948 |
|||||||||||||||||||||||||
Accident and health insurance policy benefits |
269 |
269 |
244 |
233 |
124 |
128 |
123 |
141 |
1,015 |
516 |
|||||||||||||||||||||||||
Interest credited to contractholder funds |
9 |
8 |
8 |
9 |
7 |
8 |
9 |
9 |
34 |
33 |
|||||||||||||||||||||||||
Amortization of deferred policy acquisition costs |
1,602 |
1,582 |
1,545 |
1,523 |
1,382 |
1,386 |
1,344 |
1,365 |
6,252 |
5,477 |
|||||||||||||||||||||||||
Operating costs and expenses |
1,956 |
1,890 |
1,683 |
1,731 |
1,440 |
1,322 |
1,394 |
1,338 |
7,260 |
5,494 |
|||||||||||||||||||||||||
Pension and other postretirement remeasurement (gains) losses |
(240) |
40 |
(134) |
(310) |
(371) |
(71) |
73 |
318 |
(644) |
(51) |
|||||||||||||||||||||||||
Restructuring and related charges |
25 |
23 |
71 |
51 |
40 |
196 |
13 |
4 |
170 |
253 |
|||||||||||||||||||||||||
Amortization of purchased intangibles |
109 |
109 |
105 |
53 |
30 |
31 |
29 |
28 |
376 |
118 |
|||||||||||||||||||||||||
Interest expense |
84 |
69 |
91 |
86 |
80 |
78 |
79 |
81 |
330 |
318 |
|||||||||||||||||||||||||
Total costs and expenses |
11,618 |
12,254 |
10,849 |
9,419 |
8,098 |
9,150 |
9,024 |
8,835 |
44,140 |
35,107 |
|||||||||||||||||||||||||
Income from operations before income tax expense |
1,393 |
226 |
1,797 |
3,032 |
2,864 |
1,528 |
1,379 |
1,031 |
6,448 |
6,802 |
|||||||||||||||||||||||||
Income tax expense |
281 |
20 |
362 |
626 |
594 |
312 |
273 |
194 |
1,289 |
1,373 |
|||||||||||||||||||||||||
Net income from continuing operations |
1,112 |
206 |
1,435 |
2,406 |
2,270 |
1,216 |
1,106 |
837 |
5,159 |
5,429 |
|||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax |
(321) |
325 |
196 |
(3,793) |
354 |
(63) |
144 |
(288) |
(3,593) |
147 |
|||||||||||||||||||||||||
Net income (loss) |
791 |
531 |
1,631 |
(1,387) |
2,624 |
1,153 |
1,250 |
549 |
1,566 |
5,576 |
|||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
(26) |
(7) |
6 |
(6) |
- |
- |
- |
- |
(33) |
- |
|||||||||||||||||||||||||
Net income (loss) attributable to Allstate |
817 |
538 |
1,625 |
(1,381) |
2,624 |
1,153 |
1,250 |
549 |
1,599 |
5,576 |
|||||||||||||||||||||||||
Less: Preferred stock dividends |
27 |
30 |
30 |
27 |
26 |
27 |
26 |
36 |
114 |
115 |
|||||||||||||||||||||||||
Net income (loss) applicable to common shareholders |
$ |
790 |
$ |
508 |
$ |
1,595 |
$ |
(1,408) |
$ |
2,598 |
$ |
1,126 |
$ |
1,224 |
$ |
513 |
$ |
1,485 |
$ |
5,461 |
|||||||||||||||
Earnings per common share |
|||||||||||||||||||||||||||||||||||
Basic |
|||||||||||||||||||||||||||||||||||
Continuing operations |
$ |
3.90 |
$ |
0.62 |
$ |
4.68 |
$ |
7.88 |
$ |
7.38 |
$ |
3.82 |
$ |
3.44 |
$ |
2.52 |
$ |
17.23 |
$ |
17.06 |
|||||||||||||||
Discontinued operations |
(1.13) |
1.11 |
0.66 |
(12.53) |
1.16 |
(0.20) |
0.46 |
(0.90) |
(12.19) |
0.47 |
|||||||||||||||||||||||||
Total |
$ |
2.77 |
$ |
1.73 |
$ |
5.34 |
$ |
(4.65) |
$ |
8.54 |
$ |
3.62 |
$ |
3.90 |
$ |
1.62 |
$ |
5.04 |
$ |
17.53 |
|||||||||||||||
Diluted |
|||||||||||||||||||||||||||||||||||
Continuing operations |
$ |
3.84 |
$ |
0.62 |
$ |
4.61 |
$ |
7.78 |
$ |
7.30 |
$ |
3.78 |
$ |
3.41 |
$ |
2.48 |
$ |
16.98 |
$ |
16.84 |
|||||||||||||||
Discontinued operations |
(1.11) |
1.09 |
0.65 |
(12.38) |
1.15 |
(0.20) |
0.45 |
(0.89) |
(12.02) |
0.47 |
|||||||||||||||||||||||||
Total |
$ |
2.73 |
$ |
1.71 |
$ |
5.26 |
$ |
(4.60) |
$ |
8.45 |
$ |
3.58 |
$ |
3.86 |
$ |
1.59 |
$ |
4.96 |
$ |
17.31 |
|||||||||||||||
Weighted average common shares - Basic |
285.0 |
293.1 |
298.8 |
302.5 |
304.3 |
311.2 |
313.7 |
317.4 |
294.8 |
311.6 |
|||||||||||||||||||||||||
Weighted average common shares - Diluted |
289.0 |
297.9 |
303.3 |
306.4 |
307.6 |
314.1 |
317.0 |
322.4 |
299.1 |
315.5 |
|||||||||||||||||||||||||
Cash dividends declared per common share |
$ |
0.81 |
$ |
0.81 |
$ |
0.81 |
$ |
0.81 |
$ |
0.54 |
$ |
0.54 |
$ |
0.54 |
$ |
0.54 |
$ |
3.24 |
$ |
2.16 |
|||||||||||||||
|
1 |
Contribution to Income
($ in millions, except per share data) |
Three months ended |
Twelve months ended |
||||||||||||||||||||||||||||||||
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|
|
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|||||||||||||||||||||||||||||||||
2021 |
2021 |
2021 |
2021 |
2020 |
2020 |
2020 |
2020 |
2021 |
2020 |
|||||||||||||||||||||||||
Contribution to income |
||||||||||||||||||||||||||||||||||
Net income (loss) applicable to common shareholders |
$ |
790 |
$ |
508 |
$ |
1,595 |
$ |
(1,408) |
$ |
2,598 |
$ |
1,126 |
$ |
1,224 |
$ |
513 |
$ |
1,485 |
$ |
5,461 |
||||||||||||||
Net (gains) losses on investments and derivatives |
(266) |
(105) |
(287) |
(426) |
(490) |
(319) |
(440) |
162 |
(1,084) |
(1,087) |
||||||||||||||||||||||||
Pension and other postretirement remeasurement (gains) losses |
(240) |
40 |
(134) |
(310) |
(371) |
(71) |
73 |
318 |
(644) |
(51) |
||||||||||||||||||||||||
Curtailment (gains) losses |
- |
- |
- |
- |
- |
(8) |
- |
- |
- |
(8) |
||||||||||||||||||||||||
Reclassification of periodic settlements and accruals on non- |
||||||||||||||||||||||||||||||||||
hedge derivative instruments |
(1) |
- |
- |
1 |
(1) |
1 |
- |
- |
- |
- |
||||||||||||||||||||||||
Business combination expenses and the amortization of |
31 |
29 |
28 |
398 |
118 |
|||||||||||||||||||||||||||||
purchased intangibles |
109 |
109 |
105 |
75 |
30 |
|||||||||||||||||||||||||||||
Business combination fair value adjustment |
- |
- |
(6) |
- |
- |
- |
- |
- |
(6) |
- |
||||||||||||||||||||||||
(Income) loss from discontinued operations |
177 |
(235) |
(493) |
4,163 |
(446) |
86 |
(167) |
370 |
3,612 |
(157) |
||||||||||||||||||||||||
Income tax expense (benefit) |
227 |
(100) |
369 |
(224) |
272 |
54 |
97 |
(189) |
272 |
234 |
||||||||||||||||||||||||
Adjusted net income * |
$ |
796 |
$ |
217 |
$ |
1,149 |
$ |
1,871 |
$ |
1,592 |
$ |
900 |
$ |
816 |
$ |
1,202 |
$ |
4,033 |
$ |
4,510 |
||||||||||||||
Income per common share - Diluted |
||||||||||||||||||||||||||||||||||
Net income (loss) applicable to common shareholders |
$ |
2.73 |
$ |
1.71 |
$ |
5.26 |
$ |
(4.60) |
$ |
8.45 |
$ |
3.58 |
$ |
3.86 |
$ |
1.59 |
$ |
4.96 |
$ |
17.31 |
||||||||||||||
Net (gains) losses on investments and derivatives |
(0.92) |
(0.35) |
(0.95) |
(1.39) |
(1.59) |
(1.01) |
(1.39) |
0.50 |
(3.63) |
(3.44) |
||||||||||||||||||||||||
Pension and other postretirement remeasurement (gains) losses |
(0.83) |
0.13 |
(0.44) |
(1.01) |
(1.21) |
(0.22) |
0.23 |
0.99 |
(2.15) |
(0.16) |
||||||||||||||||||||||||
Curtailment (gains) losses |
- |
- |
- |
- |
- |
(0.02) |
- |
- |
- |
(0.03) |
||||||||||||||||||||||||
Reclassification of periodic settlements and accruals on non- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||
hedge derivative instruments |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||
Business combination expenses and the amortization of |
||||||||||||||||||||||||||||||||||
purchased intangibles |
0.38 |
0.37 |
0.35 |
0.25 |
0.10 |
0.10 |
0.09 |
0.09 |
1.33 |
0.37 |
||||||||||||||||||||||||
Business combination fair value adjustment |
- |
- |
(0.02) |
- |
- |
- |
- |
- |
(0.02) |
- |
||||||||||||||||||||||||
(Income) loss from discontinued operations |
0.61 |
(0.79) |
(1.63) |
13.59 |
(1.45) |
0.27 |
(0.52) |
1.15 |
12.08 |
(0.50) |
||||||||||||||||||||||||
Income tax expense (benefit) |
0.78 |
(0.34) |
1.22 |
(0.73) |
0.88 |
0.17 |
0.31 |
(0.59) |
0.91 |
0.74 |
||||||||||||||||||||||||
Adjusted net income * |
$ |
2.75 |
$ |
0.73 |
$ |
3.79 |
$ |
6.11 |
$ |
5.18 |
$ |
2.87 |
$ |
2.58 |
$ |
3.73 |
$ |
13.48 |
$ |
14.29 |
||||||||||||||
Weighted average common shares - Diluted |
289.0 |
297.9 |
303.3 |
306.4 |
307.6 |
314.1 |
317.0 |
322.4 |
299.1 |
315.5 |
||||||||||||||||||||||||
|
2 |
Book Value per Common Share and Debt to Capital
($ in millions, except per share data) |
|
|
|
|
|
|
|
|
|||||||||||||||||||
2021 |
2021 |
2021 |
2021 |
2020 |
2020 |
2020 |
2020 |
||||||||||||||||||||
Book value per common share |
|||||||||||||||||||||||||||
Numerator: |
|||||||||||||||||||||||||||
Allstate common shareholders' equity (1) |
$ |
23,209 |
$ |
24,759 |
$ |
26,037 |
$ |
24,649 |
$ |
28,247 |
$ |
25,293 |
$ |
25,016 |
$ |
22,203 |
|||||||||||
Denominator: |
|||||||||||||||||||||||||||
Common shares outstanding and dilutive potential |
|||||||||||||||||||||||||||
common shares outstanding (2) |
284.7 |
292.6 |
301.6 |
304.0 |
308.7 |
307.0 |
315.8 |
318.7 |
|||||||||||||||||||
Book value per common share |
$ |
81.52 |
$ |
84.62 |
$ |
86.33 |
$ |
81.08 |
$ |
91.50 |
$ |
82.39 |
$ |
79.21 |
$ |
69.67 |
|||||||||||
Book value per common share, excluding the impact of |
|||||||||||||||||||||||||||
unrealized net capital gains and losses on fixed income |
|||||||||||||||||||||||||||
securities |
|||||||||||||||||||||||||||
Numerator: |
$ |
23,209 |
$ |
24,759 |
$ |
26,037 |
$ |
24,649 |
$ |
28,247 |
$ |
25,293 |
$ |
25,016 |
$ |
22,203 |
|||||||||||
Allstate common shareholders' equity |
|||||||||||||||||||||||||||
Less: Unrealized net capital gains and losses on |
601 |
1,830 |
2,167 |
1,680 |
3,185 |
2,750 |
2,610 |
534 |
|||||||||||||||||||
fixed income securities |
|||||||||||||||||||||||||||
Adjusted Allstate common shareholders' equity |
$ |
22,608 |
$ |
22,929 |
$ |
23,870 |
$ |
22,969 |
$ |
25,062 |
$ |
22,543 |
$ |
22,406 |
$ |
21,669 |
|||||||||||
Denominator: |
|||||||||||||||||||||||||||
Common shares outstanding and dilutive potential |
284.7 |
292.6 |
301.6 |
304.0 |
308.7 |
307.0 |
315.8 |
318.7 |
|||||||||||||||||||
common shares outstanding |
|||||||||||||||||||||||||||
Book value per common share, excluding the impact of |
|||||||||||||||||||||||||||
unrealized net capital gains and losses on fixed income |
$ |
79.41 |
$ |
78.36 |
$ |
79.14 |
$ |
75.56 |
$ |
81.19 |
$ |
73.43 |
$ |
70.95 |
$ |
67.99 |
|||||||||||
securities * |
|||||||||||||||||||||||||||
Total debt |
$ |
7,976 |
$ |
7,980 |
$ |
7,996 |
$ |
7,996 |
$ |
7,825 |
$ |
6,635 |
$ |
6,634 |
$ |
6,633 |
|||||||||||
Total capital resources |
$ |
33,155 |
$ |
34,709 |
$ |
36,203 |
$ |
34,815 |
$ |
38,042 |
$ |
33,898 |
$ |
33,620 |
$ |
30,806 |
|||||||||||
Ratio of debt to Allstate shareholders' equity |
31.7 % |
29.9 % |
28.3 % |
29.8 % |
25.9 % |
24.3 % |
24.6 % |
27.4 % |
|||||||||||||||||||
Ratio of debt to capital resources |
24.1 % |
23.0 % |
22.1 % |
23.0 % |
20.6 % |
19.6 % |
19.7 % |
21.5 % |
|||||||||||||||||||
- Excludes equity related to preferred stock of
$1,970 million atDecember 31, 2021 andSeptember 30, 2021 ,$2,170 million atJune 30, 2021 andMarch 31, 2021 and$1,970 million for all other periods presented. - Common shares outstanding were 280,594,850 and 304,192,788 as of
December 31, 2021 andDecember 31, 2020 , respectively.
|
3 |
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