c11a1ae1d8d5bc34c1ffea32da4dcd3926e1585f891e98ebd5adb50877cc707c

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Total Revenues**       | 13,647  **[0000899051-23-000013_allcorp123122earningsrelea.htm:0]**  | 13,786  **[0000899051-23-000036_allcorp33123earningsreleas.htm:0]**  | 14,000  **[0000899051-23-000062_allcorp63023earningsreleas.htm:2]** **[ALL_3383899_1]**  | 14,500  **[ALL_3363891_2]** **[0000899051-23-000075_allcorp93023earningsreleas.htm:0]** **[0000899051-23-000075_allcorp93023earningsreleas.htm:2]**  | 14,800  **[0000899051-24-000005_allcorp123123earningsrelea.htm:0]** **[0000899051-24-000005_allcorp123123earningsrelea.htm:2]**  | 15,259  **[0000899051-24-000024_all-20240331.htm:10]**  | 15,714  **[0000899051-24-000054_all-20240630.htm:10]**  | 16,627  **[0000899051-24-000083_all-20240930.htm:11]**  |
| **Property-Liability**   | 11,380  **[0000899051-23-000013_allcorp123122earningsrelea.htm:0]**  | 11,635  **[0000899051-23-000037_all-20230331.htm:66]**  | 11,900  **[0000899051-23-000062_allcorp63023earningsreleas.htm:2]**  | 12,300  **[0000899051-23-000075_allcorp93023earningsreleas.htm:0]** **[0000899051-23-000075_allcorp93023earningsreleas.htm:2]**  | 12,600  **[0000899051-24-000005_allcorp123123earningsrelea.htm:2]**  | 13,870  **[0000899051-24-000024_all-20240331.htm:10]**  | 14,320  **[0000899051-24-000054_all-20240630.htm:10]**  | 15,155  **[0000899051-24-000083_all-20240930.htm:11]**  |
| **Protection Services**  | 643  **[0000899051-23-000013_allcorp123122earningsrelea.htm:4]**  | 671  **[0000899051-23-000037_all-20230331.htm:79]**  | 686  **[ALL_3277050_6]** **[0000899051-23-000062_allcorp63023earningsreleas.htm:5]**  | 697  **[ALL_3363891_8]** **[0000899051-23-000075_allcorp93023earningsreleas.htm:5]**  | 719  **[ALL_3372614_7]** **[0000899051-24-000005_allcorp123123earningsrelea.htm:5]**  | 748  **[0000899051-24-000024_all-20240331.htm:10]**  | 772  **[0000899051-24-000054_all-20240630.htm:10]**  | 832  **[0000899051-24-000083_all-20240930.htm:11]**  |
| **Health and Benefits**  | 579  **[ALL_3226491_7]**  | 583  **[ALL_3249191_4]**  | 575  **[ALL_3277050_6]**  | 587  **[ALL_3363891_8]**  | 630  **[ALL_3372614_7]**  | 637  **[0000899051-24-000024_all-20240331.htm:10]**  | 620  **[0000899051-24-000054_all-20240630.htm:80]**  | 630  **[0000899051-24-000083_all-20240930.htm:11]**  |
| **Corporate and Other**  | N/A | N/A | N/A | N/A | N/A | 39  **[0000899051-24-000024_all-20240331.htm:10]**  | 41  **[0000899051-24-000054_all-20240630.htm:10]**  | 59  **[0000899051-24-000083_all-20240930.htm:11]**  |

7871ead0575add560fb6874d8cda92232f15b77365d0ae81dcca23b8036a7f5a

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

4726e7c5a08d56752f83fcf770ae787c582480223abdf2c6c6ebff748ff6adc9

61a713a34bee39759e9233e68e5c7dc9aba0f8595a555ac4fb2948ab3a8eca1e

ca8ac3bd65901a831cf9248cdbccacdf8b258e971599610447096c6074e672d9

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Policies in Force (thousands)** | **189,071**  **[0000899051-23-000013_allcorp123122earningsrelea.htm:0]**  | **186,726**  **[0000899051-23-000036_allcorp33123earningsreleas.htm:0]**  | **188,022**  **[0000899051-23-000062_allcorp63023earningsreleas.htm:0]**  | **37,853**  **[0000899051-23-000076_all-20230930.htm:79]**  | **192,781**  **[0000899051-24-000005_allcorp123123earningsrelea.htm:0]**  | **197,326**  **[0000899051-24-000023_allcorp33124investorsupp.htm:4]**  | **199,877**  **[0000899051-24-000053_allcorp63024investorsupp.htm:4]**  | **205,483**  **[0000899051-24-000082_allcorp93024investorsupp.htm:5]**  |
| **Allstate Brand Average Premium ($)** | **659**  **[0000899051-23-000020_all-20221231.htm:71]**  | **726**  **[0000899051-23-000037_all-20230331.htm:69]**  | **737**  **[0000899051-23-000063_all-20230630.htm:78]**  | **772**  **[0000899051-23-000076_all-20230930.htm:80]**  | **757**  **[0000899051-24-000013_all-20231231.htm:69]**  | **823**  **[0000899051-24-000024_all-20240331.htm:63]**  | **1,993**  **[0000899051-24-000054_all-20240630.htm:69]**  | **852**  **[0000899051-24-000083_all-20240930.htm:71]**  |
| **Allstate Brand Renewal Ratio (%)** | **86.8**  **[0000899051-23-000020_all-20221231.htm:71]**  | **85.7**  **[0000899051-23-000037_all-20230331.htm:69]**  | **85.5**  **[0000899051-23-000063_all-20230630.htm:78]**  | **84.9**  **[0000899051-23-000076_all-20230930.htm:80]**  | **85.4**  **[0000899051-24-000013_all-20231231.htm:69]**  | **86.0**  **[0000899051-24-000024_all-20240331.htm:63]**  | **85.7**  **[0000899051-24-000054_all-20240630.htm:67]**  | **84.7**  **[0000899051-24-000083_all-20240930.htm:71]**  |
| **New Issued Applications (thousands)** | **1,427**  **[0000899051-23-000013_allcorp123122investorsup.htm:12]**  | **1,534**  **[0000899051-23-000037_all-20230331.htm:69]**  | **1,478**  **[0000899051-23-000063_all-20230630.htm:78]**  | **1,505**  **[0000899051-23-000076_all-20230930.htm:80]**  | **1,398**  **[0000899051-24-000005_allcorp123123investorsup.htm:10]**  | **1,670**  **[0000899051-24-000024_all-20240331.htm:63]**  | **1,728**  **[0000899051-24-000054_all-20240630.htm:67]**  | **2,254**  **[0000899051-24-000083_all-20240930.htm:74]** **[0000899051-24-000083_all-20240930.htm:71]**  |
| **Combined Ratios by Line of Business** | **Auto: 112.6**  **[0000899051-23-000004_exhibit991newsrelease11923.htm:0]**  | **Auto: 104.4**  **[0000899051-23-000037_all-20230331.htm:70]**  | **Auto: 108.3**  **[0000899051-23-000063_all-20230630.htm:79]**  | **Auto: 102.1**  **[0000899051-23-000076_all-20230930.htm:82]**  | **Auto: 103.4**  **[0000899051-24-000013_all-20231231.htm:71]**  | **Auto: 96.0**  **[0000899051-24-000024_all-20240331.htm:64]**  | **Auto: 95.9**  **[0000899051-24-000054_all-20240630.htm:69]**  | **Auto: 94.8**  **[0000899051-24-000082_allcorp93024earningsreleas.htm:2]**  |
| **Loss Ratio by Line of Business** |  | **Auto: 83.4**  **[0000899051-23-000037_all-20230331.htm:70]**  | **Auto: 87.9**  **[0000899051-23-000063_all-20230630.htm:80]**  | **Auto: 81.4**  **[0000899051-23-000076_all-20230930.htm:82]**  |  | **Auto: 75.4**  **[0000899051-24-000024_all-20240331.htm:64]**  | **Auto: 74.2**  **[0000899051-24-000054_all-20240630.htm:70]**  | **Auto: 71.9**  **[0000899051-24-000083_all-20240930.htm:76]**  |
| **Effect of Catastrophe Losses on Combined Ratio (points)** | **6.8**  **[0000899051-23-000013_allcorp123122earningsrelea.htm:16]**  | **14.5**  **[0000899051-23-000037_all-20230331.htm:70]**  | **22.6**  **[0000899051-23-000063_all-20230630.htm:80]**  | **9.6**  **[0000899051-23-000076_all-20230930.htm:82]**  | **0.5**  **[0000899051-24-000005_allcorp123123earningsrelea.htm:17]**  | **5.7**  **[0000899051-24-000024_all-20240331.htm:60]**  | **15.9**  **[0000899051-24-000054_all-20240630.htm:70]**  | **12.4**  **[0000899051-24-000083_all-20240930.htm:68]**  |
| **Auto Underwriting Income (Loss) ($ million)** | **-974**  **[ALL_3226491_1]**  | **-346**  **[0000899051-23-000037_all-20230331.htm:66]**  | **-678**  **[ALL_3383899_2]**  | **-331**  **[0000899051-23-000076_all-20230930.htm:72]**  |  | **351**  **[0000899051-24-000024_all-20240331.htm:61]**  | **370**  **[0000899051-24-000054_all-20240630.htm:70]**  | **486**  **[0000899051-24-000083_all-20240930.htm:76]**  |
| **Catastrophe Losses by Type of Event ($ million)** | **779**  **[0000899051-23-000004_exhibit991newsrelease11923.htm:0]**  | **1,691**  **[0000899051-23-000037_all-20230331.htm:72]**  | **2,696**  **[0000899051-23-000063_all-20230630.htm:83]**  | **1,180**  **[0000899051-23-000076_all-20230930.htm:86]**  | **68**  **[0000899051-24-000002_exhibit991newsrelease11824.htm:0]**  | **731**  **[0000899051-24-000024_all-20240331.htm:67]**  | **2,120**  **[0000899051-24-000054_all-20240630.htm:73]**  | **1,703**  **[0000899051-24-000083_all-20240930.htm:79]**  |
| **Management Fee for Reciprocal Exchanges ($ million)** |  |  |  |  | **10**  **[0000899051-24-000024_all-20240331.htm:35]**  | **10**  **[0000899051-24-000024_all-20240331.htm:35]**  | **11**  **[0000899051-24-000054_all-20240630.htm:36]**  | **2**  **[0000899051-24-000083_all-20240930.htm:38]**  |

d7d2c4633e2c77098ab9b3b0b6de0c7c810d8ae0badf88181dd496b5d9e04571

Allstate Corporation is a leading provider of property and casualty insurance in the United States and Canada, offering a wide range of protection solutions for autos, homes, and personal property **[0000899051-24-000013_all-20231231.htm:155]** **[0000899051-24-000013_all-20231231.htm:3]**. The company is structured into several segments, with Allstate Protection being the largest contributor to its revenue **[0000899051-24-000013_all-20231231.htm:181]**. Allstate's offerings include auto and homeowners insurance, consumer product protection plans, roadside assistance, identity protection, and health and benefits products **[0000899051-24-000013_all-20231231.htm:184]** **[0000899051-24-000013_all-20231231.htm:12]** **[0000899051-24-000013_all-20231231.htm:13]**. The company's strategy focuses on expanding its market share in personal property-liability and enhancing its protection offerings through various distribution channels **[0000899051-24-000013_all-20231231.htm:3]** **[0000899051-24-000024_all-20240331.htm:56]**.

1. **Allstate Protection** - Offers private passenger auto and homeowners insurance, serving as the primary revenue driver for the company.
2. **Protection Services** - Provides consumer product protection plans, roadside assistance, and identity protection through services like Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, and Allstate Identity Protection.
3. **Allstate Health and Benefits** - Delivers employer voluntary benefits, group health, and individual health products, including life, accident, and critical illness insurance.
4. **Corporate and Other** - Encompasses various corporate functions and other business activities not included in the main segments.

70d83f590066946268f051df5645014c231644b906f17d730621ef1efc34e21a

1. Given the DOJ lawsuit related to National General's lender-placed auto insurance program and the potential for SEC involvement, can you elaborate on the possible financial and operational impacts this litigation may have on Allstate's ongoing business and how you are preparing for potential outcomes?

2. With the improvement in the auto underlying combined ratio largely driven by lower frequency, can you quantify any unsustainable benefits from frequency reductions this quarter, and how confident are you that these improvements are sustainable moving forward?

3. You've increased advertising investment by approximately **$300 million** to support growth efforts in certain states; how are you measuring the effectiveness of this spend across different channels, and what metrics ensure that this substantial investment translates into profitable growth?

4. In states like New York and New Jersey, where you're managing new business volumes due to challenges in achieving rate adequacy, how do you balance the need for profitability with the desire to grow market share, and what strategies are you implementing to achieve acceptable returns in these difficult markets?

5. Although Allstate Protection Plans have shown a **20% revenue growth** and expansion into Europe and Asia, what risks or challenges do you foresee that could impact maintaining this growth trajectory and profitability levels in this segment?

a4f01f999e2aaecdb0fa14792a8fdef6057603cf39e4deb3ddd98933c654fa15

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

**Policies in Force (thousands)**

**Allstate Brand Average Premium ($)**

**Allstate Brand Renewal Ratio (%)**

**New Issued Applications (thousands)**

**Combined Ratios by Line of Business**

**Loss Ratio by Line of Business**

**Effect of Catastrophe Losses on Combined Ratio (points)**

**Auto Underwriting Income (Loss) ($ million)**

**Catastrophe Losses by Type of Event ($ million)**

**Management Fee for Reciprocal Exchanges ($ million)**

75f3140ee728e0ef030bb037f4230aeac9b3a115c913b0d3e358edd8cd0b7e8e

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Thomas J. Wilson      | Chair of the Board, President, and CEO                                   | January 2007     | Thomas J. Wilson has been with Allstate for **29 years** and has served as CEO since **January 2007** and Chair of the Board since **May 2008**. He was first elected as an officer in **1995**  **[0000899051-24-000013_all-20231231.htm:29]** **[0001308179-23-000618_all4106341-def14a.htm:32]** **[0001308179-24-000404_all4258441-def14a.htm:40]** .                                      |
| Elizabeth A. Brady    | Executive Vice President, Chief Marketing, Customer and Communications Officer | January 2020     | Elizabeth A. Brady has held this position since **January 2020**. She was first elected as an officer of Allstate in **2018**  **[0000899051-24-000013_all-20231231.htm:29]** .                                                                                                               |
| Christine M. DeBiase  | Executive Vice President, Chief Legal Officer, General Counsel, and Corporate Secretary | January 2023     | Christine M. DeBiase joined Allstate in **January 2023**. She previously served as Executive Vice President, Chief Administrative Officer, and General Counsel of Brighthouse Financial  **[0000899051-24-000013_all-20231231.htm:29]** **[0000899051-23-000020_all-20221231.htm:29]** .                                                  |
| Jesse E. Merten       | Executive Vice President and Chief Financial Officer                     | September 2022   | Jesse E. Merten has been the CFO since **September 2022**. He was first elected as an officer in **2012**  **[0000899051-24-000013_all-20231231.htm:29]** **[0000899051-23-000020_all-20221231.htm:29]** .                                                                                                                               |
| John E. Dugenske      | President, Investments and Corporate Strategy                            | September 2022   | John E. Dugenske has held this position since **September 2022**. He was first elected as an officer in **2017**  **[0000899051-24-000013_all-20231231.htm:29]** **[0000899051-23-000020_all-20221231.htm:29]** .                                                                                                                        |
| Suren Gupta           | President, Protection Products and Enterprise Services                   | August 2023      | Suren Gupta assumed this role in **August 2023**. He has been with Allstate since **2011**  **[0000899051-24-000013_all-20231231.htm:29]** .                                                                                                                                                  |
| Zulfikar Jeevanjee    | Executive Vice President and Chief Information Officer                   | October 2022     | Zulfikar Jeevanjee began serving as CIO in **October 2022**. He previously worked at CVS Health and Wells Fargo  **[0000899051-24-000013_all-20231231.htm:29]** .                                                                                                                            |
| John C. Pintozzi      | Senior Vice President, Accounting Special Projects                       | May 2024         | John C. Pintozzi transitioned to this role in **May 2024**. He has been with Allstate since **2005**  **[0000899051-24-000013_all-20231231.htm:29]** **[0000899051-24-000027_all-20240513.htm:1]** .                                                                                                                                    |
| Mark Q. Prindiville   | Executive Vice President and Chief Risk Officer                          | May 2020         | Mark Q. Prindiville has been the Chief Risk Officer since **May 2020**. He was first elected as an officer in **2016**  **[0000899051-24-000013_all-20231231.htm:29]** **[0000899051-23-000020_all-20221231.htm:29]** .                                                                                                                  |
| Mario Rizzo           | President, Property-Liability                                            | September 1, 2022| Mario Rizzo assumed this role on **September 1, 2022**. He previously served as the Executive Vice President and Chief Financial Officer  **[0000899051-24-000013_all-20231231.htm:29]** **[0001308179-23-000618_all4106341-def14a.htm:79]** .                                                                                                |
| Robert Toohey         | Executive Vice President and Chief Human Resources Officer               | March 2022       | Robert Toohey began serving in this role in **March 2022**. Before joining Allstate, he was a talent and operations advisor/consultant and served as President of Pymetrics  **[0000899051-24-000013_all-20231231.htm:29]** **[0000899051-23-000020_all-20221231.htm:29]** .                                                             |
| Eric K. Ferren        | Senior Vice President, Controller and Chief Accounting Officer           | May 30, 2024     | Eric K. Ferren has been in this role since at least **May 30, 2024**  **[0001127602-24-016962_xslF345X02/form3.xml:0]** .                                                                                                                                                                        |

8f8c6be938d0d31a128bbe6c3cba079bb02f2b9593feb353abecd8df5b0caae8

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | August 2021  **[ALL_3277050_19]** **[ALL_3383899_20]**  |
| End Date/Duration        | March 31, 2024  **[0000899051-24-000083_all-20240930.htm:97]**  |
| Total additional amount  | **$5 billion**  **[ALL_3277050_19]** **[ALL_3383899_20]**  |
| Remaining authorization amount | **$0** (as of March 31, 2024)  **[0000899051-24-000083_all-20240930.htm:97]**  |
| Details                  | The program was initiated to return capital from the sale of life and annuity businesses and was suspended in July 2023 due to financial losses and increased catastrophe costs.  **[ALL_3277050_19]** **[ALL_3383899_20]**  |

ce39315a0bcf91fa073ca0e3fb6331c3a93be250c1c0b28c623872a3674a670c

5e91deb9606a1628cc68a8232aff8514ea1f9574d0cfcb4dfecebd1a963e3c67

**Quarterly guidance for Q3 2024:**
- **Retention**: expected to improve as rate increases level off  **[ALL_3405040_4]**  (no prior guidance)
- **Allstate brand rate increases**: 6.3% in the first nine months of 2024, with fewer price increases anticipated going forward  **[ALL_3405040_4]**  (no prior guidance)
- **Employee Voluntary Benefits (EVB) business sale**: $2 billion sale expected to close in first half of 2025  **[ALL_3405040_6]**  (no prior guidance)
- **Projected gain from EVB sale**: $600 million  **[ALL_3405040_6]**  (no prior guidance)
- **Capital from EVB sale**: approximately $1.6 billion  **[ALL_3405040_6]**  (no prior guidance)
- **Capital allocation**: focus on organic growth, potential acquisitions, and investments in existing businesses (share repurchases remain possible but not prioritized)  **[ALL_3405040_9]**  (no prior guidance)
- **Transformative Growth Initiatives**: continued investments in new products, distribution, and advertising to drive sustainable growth  **[ALL_3405040_4]**  (no prior guidance)

No comparable quarterly metrics were provided in the prior issued period (Q2 2024), so there is no indication that any metric was raised, lowered, or kept the same. No annual guidance was given.

864063f9c655b412acad4326ff004e3cfe7738677096beb1e3a50e9ec356bb3f

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1992  **[0000899051-24-000013_all-20231231.htm:286]**    | Present  | Current auditor   |

d367b613f9d922127de5cb2369d6092cdb655695875e7463afeea1042afed78c

- Total Revenue: $16,627 million (+15% YoY)  **[0000899051-23-000076_all-20230930.htm:2]** **[0000899051-24-000083_all-20240930.htm:2]**   
- Property-Liability: $15,155 million (+15% YoY)  **[0000899051-23-000076_all-20230930.htm:16]** **[0000899051-24-000083_all-20240930.htm:11]**   
  • Auto: $9,270 million (+11% YoY)  **[0000899051-23-000076_all-20230930.htm:16]** **[0000899051-24-000083_all-20240930.htm:11]**   
  • **Commercial Lines**: $151 million (−22% YoY)  **[0000899051-23-000076_all-20230930.htm:16]** **[0000899051-24-000083_all-20240930.htm:11]**   
- Protection Services: $832 million (+21% YoY)  **[0000899051-23-000076_all-20230930.htm:16]** **[0000899051-24-000083_all-20240930.htm:11]**   
  • Roadside Assistance: $34 million (−33% YoY)  **[0000899051-23-000076_all-20230930.htm:16]** **[0000899051-24-000083_all-20240930.htm:11]**   
- Health and Benefits: $630 million (+8% YoY)  **[0000899051-23-000076_all-20230930.htm:16]** **[0000899051-24-000083_all-20240930.htm:11]**   
- Corporate and Other: $59 million (+103% YoY)  **[0000899051-23-000076_all-20230930.htm:16]** **[0000899051-24-000083_all-20240930.htm:11]**   
- Net Income: $1,164 million (vs. −$4 million in Q3 2023)  **[0000899051-23-000076_all-20230930.htm:2]** **[0000899051-24-000083_all-20240930.htm:2]**   
- EPS (Diluted): $4.33 (vs. −$0.17 in Q3 2023)  **[0000899051-23-000076_all-20230930.htm:2]** **[0000899051-24-000083_all-20240930.htm:2]**   

98e41273bcbfcb681098531f840c112f0eb085b52a26a2066ade5f4cb9d4cc4b

15eaee138498d94e59183968c40da0124be89fb43ad470170b7c2cf8bfcf4ee7

857b9b4ccbdd58ecb5af5aab01b0b681f89005b57c66740888dd00293e840cf3

- **Allstate's homeowners insurance business is highly profitable**, with a 10-year average combined ratio of approximately **92**.  **[ALL_3382378_16]**  The company plans to leverage this strength to drive growth in both the Allstate agent channel and independent agent channel, including by bundling products.  **[ALL_3382378_16]**
- **The acquisition of National General has effectively doubled Allstate's independent agent business since early 2021**.  **[ALL_3382378_9]**  The nonstandard auto business is well-run and growing, and the rollout of the new **Custom360** product is expected to drive further growth in standard and preferred auto insurance, expanding into more states.  **[ALL_3382378_9]**
- **Allstate is expanding its direct-to-consumer channel, which has tremendous upside**.  **[ALL_3382378_19]**  By reducing quote completion time by **40%** and adding new products, the company is improving customer experience and lowering acquisition costs. Increased marketing investment in this channel is expected to drive growth.  **[ALL_3382378_19]**

75a11d3eb2fa19b14489105b6f4ee87dc1f8fd98a485c055aec7935011879055

- **Allstate is facing a DOJ lawsuit regarding National General's lender-placed insurance program**, which could pose legal and financial risks despite management's confidence that it will not impact ongoing business  **[ALL_3395945_13]** **[ALL_3395945_16]** .
- **Increased competition in the personal auto insurance market could pressure Allstate's growth and margins**, as competitors may get aggressive on pricing and advertising as loss cost trends improve industry-wide  **[ALL_3395945_10]** .
- **Allstate is increasing its advertising spend to drive growth, which may elevate expenses and impact the company's expense ratio**  **[ALL_3395945_10]** **[ALL_3395945_14]** .

a1855365d9bb394a4d7ab6091c0fd1db3bf4aaa1541f709d72081f978a34cdbb

1. **Auto PIF Growth Outlook**  
   **Q:** Will auto PIF growth turn positive this year?  
   **A:** Management believes it's time to pivot to growth in auto insurance, expecting sequential growth before year-over-year increases. Positive signs in retention and production support this outlook, and they see growth as a great opportunity to increase shareholder value.  **[ALL_3382378_6]**   

2. **Health and Benefits Sale Progress**  
   **Q:** What's the update on the Health and Benefits sale?  
   **A:** The sale process is progressing as expected with robust interest from buyers. Management is confident in selecting a buyer aligned with their strategy and plans to complete the sale this year, freeing up capital for organic growth and other opportunities.  **[ALL_3382378_7]** **[ALL_3382378_15]**   

3. **Impact of Loss Trends on Pricing**  
   **Q:** How are loss trends affecting pricing decisions?  
   **A:** Loss trends are around **5%**, with favorable frequency but higher severity, especially in injury claims. Severity increases are moderating but remain positive, necessitating ongoing rate increases to reflect loss trends and maintain profitability in both Allstate brand and National General.  **[ALL_3382378_10]**   

4. **Rate Adequacy in Key States**  
   **Q:** Are rates adequate in California, New York, and New Jersey?  
   **A:** In California, rates are adequate, and they've reopened for new business. In New York and New Jersey, rates are still insufficient; New Jersey approved a **13.9%** increase effective later this year, but more increases are needed before lifting underwriting restrictions.  **[ALL_3382378_11]** **[ALL_3382378_14]**   

5. **National General Growth Potential**  
   **Q:** What growth prospects does National General offer?  
   **A:** National General has doubled the independent agent business size since acquisition, with strong growth in nonstandard auto. The Custom360 product, currently in **17 states** and expanding nationwide, offers additional growth potential in standard and preferred auto and homeowners insurance.  **[ALL_3382378_9]** **[ALL_3382378_16]**   

6. **Agent Productivity and Growth**  
   **Q:** Is agent productivity contributing to growth?  
   **A:** Agent productivity has increased, with Allstate brand new business production up **6.5%**, despite fewer agents and growth restrictions in major states. Organizational changes and local market focus are driving higher productivity and production.  **[ALL_3382378_8]** **[ALL_3382378_17]**   

7. **Direct-to-Consumer Expansion**  
   **Q:** How is the direct channel being developed?  
   **A:** Management is accelerating growth in the direct channel, seeing significant upside in serving customers who prefer it. After previously reducing direct new business to support agents, they are now enhancing technology and marketing to increase direct volumes significantly.  **[ALL_3382378_18]**   

8. **Marketing Investments for Growth**  
   **Q:** Are marketing efforts increasing to drive growth?  
   **A:** As rate adequacy is achieved in about **75%** of states, they are investing more in marketing and unwinding underwriting restrictions. Local market-focused teams aim to maximize returns on marketing investments, supporting significant growth opportunities across channels.  **[ALL_3382378_8]**   

3bf7c8fbf7094de2edbb34995d9149460146836c2162859d633dc2313c6fcc30

- **Allstate is effectively positioned to grow as more states reach target levels of profitability in 2024**, leveraging capabilities like **transformative growth initiatives**, **Custom 360**, and **nonstandard auto offerings** to capture market share growth.  **[ALL_3363891_24]**
- **Productivity of Allstate's exclusive agent distribution system has improved**, with **average productivity up over 13%** and **top-tier agents' production up 15%**, while **reducing distribution costs**, which will be an asset as they lean back into growth.  **[ALL_3363891_16]**
- **Allstate is optimizing shareholder value through strategic capital allocation**, including the potential sale of its Health and Benefits business, which will allow it to **capture the value created** and focus on core strengths, potentially increasing profitability and returns.  **[ALL_3363891_19]**

637bbdf8e0ddb70464f1a4a9fff4827d189210d95ead24ed3215f0d76164a6ed

- **Allstate resumed writing business in California across all channels after obtaining approval for a 30% rate increase**, which improves profitability and opens growth opportunities in a key market.  **[ALL_3372614_8]**
- **The acquisition of National General has significantly boosted Allstate's presence in the independent agent channel, increasing from over $5 billion in 2021 to over $9 billion currently**, enhancing growth prospects in both nonstandard auto and standard preferred homeowners insurance.  **[ALL_3372614_11]**
- **Allstate has ample capital to fund its growth initiatives without needing to divest assets**, demonstrating strong financial flexibility to capitalize on market opportunities.  **[ALL_3372614_13]**

8cf6bef9d98154155ef373455bfb154424d59bd19c44df13627a37e7a4ff63a9

1. **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.  **[ALL_3395945_8]** ,  **[ALL_3395945_15]** 

2. **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.  **[ALL_3395945_10]** 

3. **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.  **[ALL_3395945_9]** 

4. **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.  **[ALL_3395945_13]** ,  **[ALL_3395945_14]** 

5. **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.  **[ALL_3395945_11]** 

6. **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.  **[ALL_3395945_10]** 

7. **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.  **[ALL_3395945_12]** 

8. **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.  **[ALL_3395945_13]** ,  **[ALL_3395945_15]** 

6d7a2527eab69ca35e8fac3bc635d71daea0675fcfe708812b50ec13c11eb981

1. **Auto PIF Growth and Retention**  
   **Q:** Can we expect auto policies in force (PIF) growth to turn positive soon?  
   **A:** While we don't provide specific growth projections, we're confident in growing market share by improving retention and increasing new business.  **[ALL_3405040_8]**  We've taken significant rate actions that affected customer retention, but we expect to take **less rate going forward**, which should positively impact retention.  **[ALL_3405040_8]**  We're actively enhancing customer experience and affordability to mitigate shopping and keep more customers.  **[ALL_3405040_8]**  With **75% to 80%** of our premium volume open for business, we're accelerating investments and seeing good production trends across all distribution channels.  **[ALL_3405040_8]** 

2. **Capital Allocation and Share Repurchases**  
   **Q:** How will you use your increased capital—acquisitions, buybacks, or dividends?  
   **A:** We believe the best use of capital is investing in **organic growth**, given our high returns on equity.  **[ALL_3405040_9]**  While we're no stranger to share repurchases—having bought back **83% of our shares** for about **$42 billion** since going public—we currently see better value in growth opportunities.  **[ALL_3405040_9]**  We may consider increasing our equity allocation or acquisitions like National General, which has **doubled in size** since acquisition.  **[ALL_3405040_9]** 

3. **Homeowners Business Growth**  
   **Q:** How are you growing homeowners' business despite significant rate increases?  
   **A:** We're exceptionally good at homeowners insurance and have repositioned this business over a decade.  **[ALL_3405040_10]**  Despite higher rates, we're growing by leveraging bundling through our agents and capitalizing on market disruptions as competitors pull back.  **[ALL_3405040_10]**  We see opportunities across all distribution channels, including independent agents and direct.  **[ALL_3405040_10]**  Our new **Affordable, Simple, Connected (ASC) Homeowners** product will further enhance growth.  **[ALL_3405040_10]** 

4. **Impact of Agent Compensation Changes on Retention**  
   **Q:** Is the change in agent compensation affecting customer retention?  
   **A:** Retention in our agency channel is actually **up year-over-year**.  **[ALL_3405040_10]**  We've transformed agent compensation to align with our strategic goals, incentivizing agents to drive new business and deepen customer relationships.  **[ALL_3405040_10]**  The decline in overall retention is primarily due to necessary price increases, not agent compensation changes.  **[ALL_3405040_10]** 

5. **Advertising Spend and Customer Acquisition**  
   **Q:** Is increased advertising spend yielding expected customer acquisition?  
   **A:** Advertising is an investment that takes time to yield results.  **[ALL_3405040_21]**  We've significantly increased our spend and are seeing improvements in brand consideration, quote volumes, and close rates.  **[ALL_3405040_21]**  We have sophisticated metrics in place and are confident that continued investment will drive economic growth.  **[ALL_3405040_21]** 

6. **Retention Ratio Outlook**  
   **Q:** When will retention ratios improve due to fewer rate increases?  
   **A:** We expect retention to improve as we take **less rate going forward**, but we're actively working to enhance customer experience and affordability rather than just waiting.  **[ALL_3405040_19]**  We're seeing benefits in individual states and are confident in our ability to manage through this period.  **[ALL_3405040_19]** 

7. **Effect of Rate Increases on Retention**  
   **Q:** Are rate increases in key states driving declines in retention and policies?  
   **A:** Yes, about **40%** of the sequential decline in retention is due to larger rate increases in states like California, New York, and New Jersey.  **[ALL_3405040_18]**  Additionally, migrating legacy Esurance customers to National General accounts for about **60%** of the decline in Allstate brand retention.  **[ALL_3405040_18]** 

8. **Homeowners Growth by Geography**  
   **Q:** Where do you see growth opportunities in homeowners, given geographic risks?  
   **A:** Excluding challenged markets like Florida and California, we see significant growth potential across most of the country.  **[ALL_3405040_16]**  We're capitalizing on competitors' pullbacks in markets affected by severe weather, where our capabilities allow us to write profitable business.  **[ALL_3405040_16]** 

9. **Auto Business Profitability and Growth**  
   **Q:** Is auto profitability at a level where you can accelerate growth?  
   **A:** We consider our auto profit improvement plan **successfully completed** and are investing heavily in marketing to drive growth.  **[ALL_3405040_15]**  While we monitor state-level performance, overall we're confident in our ability to grow profitably.  **[ALL_3405040_15]** 

10. **Advancements in Customer Interaction**  
    **Q:** How close are you to offering AI-driven customer interactions?  
    **A:** We're making strides with tools like **Sales Sidekick**, enhancing how we interact with customers.  **[ALL_3405040_21]**  This will increase productivity and improve customer experiences, leveraging our extensive data on homeowners.  **[ALL_3405040_21]** 

89967f8b99914409323af3a6807deebc6f33793dbcf454d8694965d39630440f

- **Potential increase in combined ratio due to higher loss ratios on new business**: As Allstate increases the volume of new business, particularly after unwinding underwriting restrictions and increasing advertising, the new policies tend to run at a higher loss ratio compared to renewals, which could impact the overall combined ratio going forward.  **[ALL_3372614_19]**
- **Regulatory challenges in obtaining adequate rate increases in key states**: In New Jersey, Allstate received approval for only **17%** of the **29%** rate increase filed, leading to continued restrictive underwriting and a shrinking presence due to lack of rate adequacy. In New York, they secured a **14.6%** rate increase but acknowledge the need for additional rate hikes. These limitations may hinder profitability in these important markets.  **[ALL_3372614_8]**
- **Reduction in share buybacks due to capital allocation for growth**: Allstate expects to have less capital available for share repurchases than in the past, as it prioritizes funding growth opportunities and managing increased premiums and risks. This shift may reduce direct returns to shareholders.  **[ALL_3372614_15]**

317009580fe22a318e1485475054990342c0398f2474ebf9e1a2d8b9c67400ed

1. **Rate Adequacy in Key States**  
   **Q:** Is pricing in CA, NY, NJ sufficient for profitability?  
   **A:** Allstate obtained significant rate approvals: **30% in California**  **[ALL_3372614_8]** , **17% in New Jersey**  **[ALL_3372614_8]** , and **14.6% in New York**.  **[ALL_3372614_8]**  In California, they're comfortable writing new business with the current rates.  **[ALL_3372614_8]**  In New Jersey, they need more rate and will continue restrictive underwriting, planning additional filings.  **[ALL_3372614_8]**  In New York, they've implemented the approved increase but intend to file for more rate soon.  **[ALL_3372614_8]** 

2. **Growth Plans and Competitive Positioning**  
   **Q:** How quickly can you pivot to growth in 2024?  
   **A:** Allstate plans to grow aggressively where rate adequacy is achieved.  **[ALL_3372614_12]**  They're unwinding underwriting restrictions and investing in marketing in profitable states.  **[ALL_3372614_12]**  Growth will come from both improved retention and new business acquisition, leveraging their broad distribution channels.  **[ALL_3372614_12]** 

3. **Capital Allocation and Share Buybacks**  
   **Q:** Do you have sufficient capital to fund growth, or need strategic actions?  
   **A:** Allstate has ample capital to support growth without needing strategic actions like divestitures.  **[ALL_3372614_13]**  While growth may reduce excess capital, they have a strong history of returning capital to shareholders when appropriate.  **[ALL_3372614_15]** 

4. **Expense Reduction and Claims Impact**  
   **Q:** What expenses are you cutting without affecting claims quality?  
   **A:** Allstate focuses on reducing costs through digitalization, outsourcing, and process improvements.  **[ALL_3372614_10]**  They're investing in claims operations, including staffing and training, to handle increased severity and litigation effectively.  **[ALL_3372614_16]**  This ensures they pay what they owe while eliminating leakage.  **[ALL_3372614_16]** 

5. **Transformative Growth and Expense Management**  
   **Q:** How will you grow policy count while lowering expenses?  
   **A:** Growth will come from increased efficiency in distribution, operations, and claims.  **[ALL_3372614_11]**  They've restructured agent commissions to lower renewal costs but incentivize new business.  **[ALL_3372614_10]**  Digital initiatives reduce expenses, allowing investment in marketing.  **[ALL_3372614_10]** 

6. **Impact on National General**  
   **Q:** How does the transformative growth plan affect Nat Gen?  
   **A:** National General is integral to transformative growth.  **[ALL_3372614_11]**  Growth has been strong in nonstandard auto, and they're expanding into standard and preferred markets with **Custom 360**.  **[ALL_3372614_14]**  They've grown their independent agent presence from **over $5 billion to over $9 billion** since acquiring Nat Gen.  **[ALL_3372614_11]** 

7. **Homeowners Pricing Adequacy**  
   **Q:** Is pricing in homeowners adequate, especially for bundlers?  
   **A:** They've implemented **low-teens average premium increases**, about **12.5%**.  **[ALL_3372614_17]**  The underlying combined ratio improved by **3 points to 67%**.  **[ALL_3372614_17]**  With **80%** of homeowners customers bundled, they confidently write bundled business for its substantial lifetime value.  **[ALL_3372614_17]** 

8. **Policy Growth at National General**  
   **Q:** What's driving Nat Gen's policy growth?  
   **A:** Growth is primarily in nonstandard auto due to market disruptions.  **[ALL_3372614_14]**  Nat Gen has taken **23 points** of rate over two years, maintaining profitability.  **[ALL_3372614_14]**  They're also expanding into standard and preferred auto and homeowners with **Custom 360**.  **[ALL_3372614_14]** 

9. **Impact of Underwriting and Advertising on Combined Ratio**  
   **Q:** How will unwinding restrictions and increasing advertising affect combined ratio?  
   **A:** Opening underwriting increases new business at adequate rates but may have a higher loss ratio due to new business penalty.  **[ALL_3372614_19]**  Increased marketing supports growth, and the overall combined ratio impact is managed by pricing each risk appropriately.  **[ALL_3372614_19]** 

10. **Policies in Force Trends**  
    **Q:** How are PIF trends in states without big rate actions?  
    **A:** Retention is improving in states where rate actions have stabilized, such as Texas.  **[ALL_3372614_9]**  As they lap prior rate increases, they've seen a bounce back in retention, contributing to sequential improvements.  **[ALL_3372614_9]** 

11. **Holdco Cash and Dividends**  
    **Q:** Did holdco cash increase due to dividends from subsidiaries?  
    **A:** Yes, Allstate moved capital from statutory entities and non-insurance subsidiaries to the holding company to maximize flexibility.  **[ALL_3372614_13]** 

12. **Net Growth in Bundlers Despite Auto Decline**  
    **Q:** Are you growing bundlers even with declining auto policies?  
    **A:** Allstate emphasizes bundling, with agents writing bundled business at an all-time high.  **[ALL_3372614_17]**  Despite potential declines in auto policies due to price increases, the focus on bundling supports overall growth.  **[ALL_3372614_17]** 

13. **Severity and Frequency Expectations for 2024**  
    **Q:** Are you anticipating 8-9% severity in 2024?  
    **A:** Allstate does not provide forecasts for frequency or severity but ensures they price appropriately for whatever trends emerge.  **[ALL_3372614_20]** 

b34c844405431137d35ace11d69ff525c532c91884c8bbcffec3ac7785409aba

- **Allstate is facing ongoing headwinds from medical inflation and increased attorney representation, leading to higher injury severities in auto insurance, which are expected to continue over time.**  **[ALL_3363891_3]**
- **Uncertainty in key markets like New York, New Jersey, and California may impact Allstate's growth, as they need to achieve appropriate pricing in these states or risk shrinking their operations there.**  **[ALL_3363891_19]**
- **Increased severity of storms due to more severe weather events is leading to higher catastrophe losses in homeowners insurance, resulting in underwriting losses that Allstate "prefer not to have."**  **[ALL_3363891_6]**

585debd93e6652659b7fcf9fad4196c4b27af010776b1704a2ad99e0099489f8

- **Allstate continues to face challenges in achieving appropriate rate levels in key states like New York and New Jersey**, where underwriting restrictions remain in place due to inadequate returns, potentially limiting growth in significant markets.  **[ALL_3382378_11]**
- **Rising bodily injury claim severity, driven by increased medical costs and higher attorney representation, continues to pressure auto insurance profitability**, and favorable frequency trends seen in the first quarter may not persist, posing a risk to future margins.  **[ALL_3382378_10]** ,  **[ALL_3382378_2]**
- **Increasing competition in the nonstandard auto insurance market could impact Allstate's growth prospects in that segment**, despite efforts to expand through National General's offerings.  **[ALL_3382378_16]**

dfb37bbd6aa7a4ac9201b4d09c3d76fe882ec87122dca0d37c0537bec95a8994

- **Allstate is leveraging sophisticated advertising and marketing strategies**, including **AI and telematics**, to **drive growth and increase market share**, capitalizing on improved margins.  **[ALL_3395945_10]** **[ALL_3395945_14]**
- Allstate is **poised for significant growth** in policies in force and revenue, aiming to **capture market share** through their **multichannel distribution** and **enhanced capabilities**, with potential for **revenue growth above 5%**.  **[ALL_3395945_16]** **[ALL_3395945_19]**
- Despite **increased advertising spend**, Allstate is focused on **reducing expenses through digitization** and **operational efficiencies**, improving **expense ratios** and enhancing shareholder value.  **[ALL_3395945_0]** **[ALL_3395945_16]**

7e80c010b3300e5ff0373881ed5324dcd0b6f0701ce23b341b5d1f462dd89790

Allstate Corp (ALL)

Financials