Q4 2022 Earnings Call Presentation
Fourth Quarter 2022 Earnings Presentation
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 2021 Form 10-K, Form 10-Q for
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Allstate's Strategy To Increase Shareholder Value
Increase Personal
Property-Liability Market Share
Leveraging Allstate brand,
customer base and capabilities
Expand Protection
Services
2022 Results
- Net loss of
$1.4 billion largely reflecting lower auto insurance profitability and mark-to-market losses on public equity investments - Executing comprehensive plan to improve auto insurance profitability
- Broadly raising insurance rateso Reducing expenses
- Implementing underwriting restrictions
-
- Modifying claims operating processes to manage loss costs
- Advancing Transformative Growth implementation
- Investment results benefited from proactive enterprise risk and retumanagement
- Expanding Allstate Protection Plans
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Allstate Is Focused on Improving Profitability
Net loss reflects underwriting loss and decline in
value of public equity holdings
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Three months ended |
Twelve months ended |
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($ in millions, except per share data and ratios) |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
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Total revenues |
|
|
4.9% |
|
|
1.6% |
||
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Property-Liability insurance premiums |
11,380 |
10,390 |
9.5% |
43,909 |
40,454 |
8.5% |
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Accident and health insurance premiums and contract charges |
459 |
(5.2%) |
1,833 |
1,821 |
0.7% |
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Net investment income |
557 |
847 |
(34.2%) |
2,403 |
3,293 |
(27.0%) |
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Net gains (losses) on investments and derivatives |
95 |
266 |
(64.3%) |
(1,072) |
1,084 |
NM |
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Income applicable to common shareholders: |
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Net income (loss) |
(310) |
790 |
NM |
(1,416) |
1,485 |
NM |
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Adjusted net income (loss)* |
Increased Property-Liability |
(359) |
796 |
NM |
(262) |
4,033 |
NM |
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|
earned premiums driven by |
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Per diluted common share(1) |
higher average premiums in auto |
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Net income (loss) |
and homeowners insurance |
(1.17) |
2.73 |
NM |
(5.22) |
4.96 |
NM |
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Adjusted net income (loss)* |
(1.36) |
2.75 |
NM |
(0.97) |
13.48 |
NM |
Retuon Allstate common shareholders' equity (trailing twelve months)
|
Net income applicable to common shareholders |
Loss reflects auto insurance |
(7.3%) |
5.8% |
(13.1) pts |
|
underwriting loss, reserve increases for |
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(1.3%) |
16.9% |
(18.2) pts |
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Adjusted net income* |
the current and prior years and higher |
|
NM = Not meaningful |
catastrophe losses |
- 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.
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PAGE 3 |
Underwriting Loss Due to
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Margin pressure driven by rapid severity |
Margins below target reflecting rapidly |
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escalation beginning in 2021 |
increasing claim severity |
Property-Liability recorded and underlying combined ratio*
|
111.6 |
109.1 |
||||||||||||
|
106.6 |
107.9 |
||||||||||||
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15.2 |
9.9 |
||||||||||||
|
95.9 |
11.5 |
97.3 |
14.5 |
||||||||||
|
93.0 |
93.2 |
||||||||||||
|
92.0 |
6.4 |
||||||||||||
|
87.6 |
|||||||||||||
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8.8 |
7.9 |
7.0 |
9.7 |
||||||||||
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96.4 |
99.2 |
||||||||||||
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95.1 |
93.4 |
||||||||||||
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8.2 |
90.9 |
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85.3 |
85.0 |
86.2 |
|||||||||||
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84.2 |
79.4 |
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2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
Q1 |
Q2 |
Q3 |
Q4 |
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2022 |
2022 |
2022 |
2022 |
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Underlying combined ratio* |
Catastrophe losses, PYRR and |
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Property-Liability combined ratio by product |
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($ in millions) |
Recorded |
Underwriting |
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Combined Ratio |
Income / (Loss) |
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Q4 |
2022 |
Q4 |
2022 |
|
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112.6 |
110.1 |
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|
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92.6 |
93.8 |
|
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176.3 |
141.3 |
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Other(2) |
115.3 |
105.3 |
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Total Property-Liability |
109.1 |
106.6 |
|
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Shared economy losses account for |
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approximately 55% of total commercial |
insurance underwriting loss
- Reflects combined ratio impact of catastrophe losses, prior year reserve reestimates and amortization of purchased intangibles
- Results include other personal lines, other business lines, Answer Financial and Run-offproperty-liability
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PAGE 4 |
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