The Allstate Corporation

Fourth Quarter 2018 Earnings Presentation February 6, 2019

Forward-Looking Statements and Non-GAAP Financial Information

Company Participants

Tom Wilson, Chair, President and Chief Executive Officer

Steve Shebik, Vice Chair

Mario Rizzo, Chief Financial Officer

Glenn Shapiro, President of Allstate Personal Lines

Don Civgin, President of Service Businesses

John Dugenske, Chief Investment and Corporate Strategy Officer

Mary Jane Fortin, President of Allstate Financial Businesses

Eric Ferren, Controller and Chief Accounting Officer

John Griek, Director of Investor Relations

This presentation contains forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in the 2017 Form 10-K, in 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.

This presentation also contains some 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 or investor supplement. These materials are available on our website,www.allstateinvestors.com, under the "Financials" link.

1

Allstate Delivers Strong Growth and Attractive Returns in 2018

  • ▪ Allstate continues to deliver strong operating results while building the future

  • ▪ Achieved all five 2018 Operating Priorities

  • ▪ Adjusted net income return on equity* of 14.8% for 2018

  • ▪ Property-Liability underlying combined ratio* of 85.8 for the full year 2018 is within revised annual outlook range of 85-87

    • ▪ 2019 annual Property-Liability underlying combined ratio* outlook of 86-88

($ in millions, except per share data and ratios)

Total revenues

Total revenues (excl. realized capital gains and losses) Property-Liability insurance premiums

Net investment income

Three months ended

December 31,

Realized capital gains and losses

(894)

127

NM

(877)

445

NM

Income applicable to common shareholders:

Net income per diluted common share Adjusted net income*

(312)

(0.91)

1,220 3.35

NM NM

  • 2,104 3,073 (31.5)%

  • 5.96 8.36 (28.7)%

  • per diluted common share* 6.71 20.3%

430 1.24

2,851 8.07

  • 2,467 15.6%

    Return on common shareholders' equity (trailing twelve months)

    Net income applicable to common shareholders Adjusted net income*

    10.5% 14.8%

    • 15.5% (5.0) pts

    • 13.4% 1.4 pts

    NM = not meaningful 2

Allstate Delivered on 2018 Operating Priorities; Operating Priorities Remain Unchanged for 2019

Better Serve Customers

  • ▪ Net Promoter Score increased for all major businesses

  • ▪ Renewal ratio improved across Allstate, Esurance and Encompass brands

Achieve Target Economic Returns ▪ on Capital

Adjusted net income return on equity* of 14.8% for 2018

Grow Customer

Base

  • ▪ Policy growth accelerated in Allstate and Esurance brands

  • ▪ SquareTrade policies grew 29.9 million, or 77.1%, compared to the prior year

    Proactively

    Manage Investments

  • ▪ Net investment income of $3.2 billion in 2018, and total return on $81 billion investment portfolio of 0.8%

    Build Long-Term Growth Platforms

  • ▪ Expanding telematics offerings, Arity collecting 10 billion miles of data per month

  • ▪ SquareTrade achieving acquisition performance targets

  • ▪ Acquired InfoArmor, a fast-growing identity protection provider

3

Allstate Protecting People from Life's Uncertainties

Grow Personal Property-Liability Market Share

  • ▪ 4 Customer Segments

  • ▪ Differentiated Products and Brands

  • ▪ Analytical Expertise

  • ▪ Telematics

  • ▪ Integrated Digital EnterpriseBrands, Customers, Investment Expertise, Distribution and Capital

Expand Protection Businesses

  • ▪ Life Insurance

  • ▪ Workplace Benefits (Allstate Benefits)

  • ▪ Protection Plans (SquareTrade)

  • ▪ Transportation Network Companies (Allstate Business Insurance)

  • ▪ Identity Protection (InfoArmor)

  • ▪ Customer Satisfaction

  • ▪ Unit Growth

  • ▪ Attractive Returns on Capital

  • ▪ Sustainable Profitability

  • ▪ Diversified Business Platform

Shareholder Value

4

Attachments

  • Original document
  • Permalink

Disclaimer

The Allstate Corporation published this content on 06 February 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 06 February 2019 00:59:07 UTC