Q4 2022 Earnings Call Presentation

U.S. Regulated Equity Markets (Alternative Disclosure) via PUBT

The Allstate Corporation

Fourth Quarter 2022 Earnings Presentation

02.02.2023

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 September 30, 2022, our most recent earnings release, and at the end of these slides. These materials are available on our website, www.allstateinvestors.com, under the "Financials" link.

The Allstate Corporation 2023

PAGE 1

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

1. 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

The Allstate Corporation 2023

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Allstate Is Focused on Improving Profitability

Net loss reflects underwriting loss and decline in

value of public equity holdings

		Three months ended		Twelve months ended
		December 31,			December 31,
($ in millions, except per share data and ratios)	2022	2021	Change		2022	2021	Change

Total revenues		$13,647	$13,011	4.9%	$51,412	$50,588	1.6%
Property-Liability insurance premiums	11,380	10,390	9.5%	43,909	40,454	8.5%
Accident and health insurance premiums and contract charges		459	(5.2%)	1,833	1,821	0.7%
Net investment income		557	847	(34.2%)	2,403	3,293	(27.0%)
Net gains (losses) on investments and derivatives	95	266	(64.3%)	(1,072)	1,084	NM

Income applicable to common shareholders:
Net income (loss)		(310)	790	NM	(1,416)	1,485	NM
Adjusted net income (loss)*	Increased Property-Liability	(359)	796	NM	(262)	4,033	NM
earned premiums driven by

Per diluted common share(1)	higher average premiums in auto
Net income (loss)	and homeowners insurance	(1.17)	2.73	NM	(5.22)	4.96	NM

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
	(1.3%)	16.9%	(18.2) pts
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.

The Allstate Corporation 2023

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Underwriting Loss Due to Auto Insurance

Margin pressure driven by rapid severity	Margins below target reflecting rapidly
escalation beginning in 2021	increasing claim severity

Property-Liability recorded and underlying combined ratio*

												111.6	109.1
									106.6		107.9


												15.2	9.9
						95.9	11.5	97.3	14.5
93.0	93.2
92.0						6.4

					87.6
8.8	7.9	7.0	9.7
							96.4	99.2
									95.1		93.4
					8.2				90.9
			85.3	85.0	86.2
84.2	79.4


2017	2018	2019	2020	2021	2022	Q1	Q2	Q3	Q4
										2022	2022	2022	2022
		Underlying combined ratio*			Catastrophe losses, PYRR and APIA(1)

Property-Liability combined ratio by product
($ in millions)	Recorded	Underwriting
Combined Ratio	Income / (Loss)

	Q4	2022	Q4	2022
Auto Insurance	112.6	110.1	$(974)	$(3,014)
Homeowners Insurance	92.6	93.8	$212	$681
Commercial Insurance	176.3	141.3	$(190)	$(464)
Other(2)	115.3	105.3	$(83)	$(114)
Total Property-Liability	109.1	106.6	$(1,035)	$(2,911)
	Shared economy losses account for
	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

The Allstate Corporation 2023

PAGE 4

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The Allstate Corporation published this content on 01 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 February 2023 22:58:37 UTC.