Growth Expectations
Q: What are your growth expectations over the cycle for Allstate’s policies in force?
A: We haven't set a specific target for policy growth, but we believe there's significant potential to increase our market share. With the U.S. economy's assets growing at about 1%, and modest premium increases, we see revenue growth above 5% as attainable. We're confident that our Transformative Growth initiatives will drive this expansion, leading to higher valuations. ,

Competitive Trends in Auto Market
Q: How are competitive trends in personal auto pricing and advertising impacting you?
A: Competitors are taking less rate as profitability improves, but we're well-positioned due to our sophisticated pricing and advertising capabilities. We're increasing our advertising spend to drive growth, leveraging our brand strength, broad access channels, and precision in targeting customers. We're confident in winning in this competitive environment.

Expense Ratio and Advertising Spend
Q: How will increased advertising expenses affect your expense ratio going forward?
A: We're investing more in advertising to drive growth, which impacted our combined ratio by 3 points this quarter. However, we're also committed to reducing costs through digitization and other efficiencies. We believe that growth creates value for shareholders, and we're confident that we can balance increased advertising with expense reduction to achieve attractive returns.

Auto Loss Cost Trends
Q: Are current favorable frequency trends in auto insurance sustainable?
A: Frequency has improved, but it's influenced by many factors like weather, driving patterns, and risk segmentation. While it's difficult to predict sustainability, we manage the business to achieve mid-90s combined ratios, adjusting rates as needed. We focus on overall profitability rather than short-term fluctuations in loss trends. ,

DOJ Lawsuit on National General
Q: Will the DOJ lawsuit against National General impact your business?
A: The lawsuit pertains to a lender-placed insurance program in auto insurance. We believe our program was transparent and borrowers were treated fairly. We're confident we'll prevail, and the lawsuit will have no impact on our ongoing business.

Benefits Segment Sale Process
Q: Can you update us on the sale of the Benefits segment?
A: We're progressing with the divestiture of the Health and Benefits segment. While there have been delays due to process adjustments to maximize value, we expect to announce transactions this year. We're confident that this will lead to a better outcome for shareholders and the business.

Homeowners' Insurance and Catastrophe Losses
Q: How are catastrophe losses affecting your homeowners' insurance business?
A: We focus on long-term performance in homeowners' insurance. Despite weather variability, we made an underwriting profit in the first six months. Over the past 11 years, we've generated three-quarters of the industry's profit in this line with less than 10% market share. We see this as a growth opportunity and remain confident in our business model.

Advertising Strategy and Margin Impact
Q: How does your advertising spend strategy affect margins across channels?
A: We're increasing sophistication in customer acquisition, investing in both upper-funnel brand advertising and lower-funnel targeted marketing. Our strategy benefits all channels, including agents and direct-to-consumer. We adjust our pricing and underwriting to align with the cost structures of different channels, ensuring we maintain attractive returns while driving growth. ,