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March 6, 2023 Newswires
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Raymond James Annual Institutional Investors Conference Presentation

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

The Allstate Corporation

Raymond James 2023 Institutional Investors Conference Jess Merten, Chief Financial Officer

3.6.2023

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 2022 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

Strategic Priorities

  • Retuauto insurance profitability to historical levels
  • Grow Property-Liability market share
  • Expand customer base through broad distribution and innovative protection
  • Exceptional capital management

Long-term Target Retuon Equity(1):

14 - 17%

  1. Adjusted net income retuon Allstate common shareholders' equity; a reconciliation of this non-GAAP measure to retuon common shareholders' equity, a GAAP measure, is not possible on a forward-looking basis because it is not possible to provide a reliable forecast for

catastrophes or investment income on limited partnership interests, and prior year reserve reestimates are expected to be zero because

The Allstate Corporation 2023

PAGE 2

reserves are determined based on our best estimate of ultimate losses as of the reporting date

Executing Comprehensive Approach to Restore Auto Margins

Auto insurance profit improvement will be driven by:

Rate

• Pursuing rate actions

Actions taken and planned:

  • Implemented Allstate brand rate increases of16.9% in 2022

Increases

Expense

Focus

Underwriting Actions

•

Pricing expertise and sophistication

•

Expect to continue to pursue significant rate

increases in 2023

•

Achieved approximately half the savings to date

•

Reducing expenses as part of

• Temporarily reduced advertising spend to manage

new business volume

Transformative Growth

•Future cost reductions from digitization, sourcing and operating efficiency and distribution model

• Implementing stricter auto new

•Restricting new business in 37 states including CA,

business underwriting requirements

NY and NJ

Claims Excellence

  • Modifying claims practices to manage loss costs
  • Leverage scale withstrategic partnerships and parts procurement
  • Predictive modeling to enable fair and fast resolution and liability determination early in process

The Allstate Corporation 2023

PAGE 3

Implemented Rate Increases Will Improve Auto Insurance Profitability; Additional Actions Needed to Offset Future Loss Cost Increases

Impact of rate actions already implemented and yet to be fully earned(1) expected to increase future premiums and improve margins

Prospective rate and other actions need to offset future loss cost increases to achieve long-term target

Allstate Protection auto recorded combined ratio

(Illustrative)

110.1

Future

Loss Costs

~ 4.5

Mid-90s

~ 10.5

Rates and

Other

Actions

2022 Combined

PYRR and

Implemented Rates

Target Combined

Ratio

Catastrophe

Through Q4 2022

Ratio

Losses (2)

Removes prior year reserve reestimates and adjusts catastrophe loss ratio to 5- year historical average

  1. Reflects estimated earned premium from rates already implemented and yet to be fully earned, including ~9.5 points in 2023 and ~1.0 point in 2024
  2. Adjusts combined ratio for impact of prior year reserve reestimates in 2022 and normalizes impact of catastrophe losses to average of the last 5 years

The Allstate Corporation 2023

PAGE 4

Attachments

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Disclaimer

The Allstate Corporation published this content on 06 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2023 13:08:38 UTC.

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