Q4 2021 Investor Supplement

($ in millions, except per share data)

Three months ended

Twelve months ended

Sept. 30,

June 30,

March 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Dec. 31,

Dec. 31,

Dec. 31,

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

The Allstate Corporation 4Q21 Supplement

1

($ in millions, except per share data)

Three months ended

Twelve months ended

Sept. 30,

June 30,

March 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Dec. 31,

Dec. 31,

Dec. 31,

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

The Allstate Corporation 4Q21 Supplement

2

($ in millions, except per share data)

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

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 %

The Allstate Corporation 4Q21 Supplement

3