Allstate : Presentation (ee0249)
ALL
Published on 06/05/2025 at 08:16
The Allstate Corporation
6.5.2025
Allstate at a Glance
Strategy
Increase Personal Property-Liability Market Share
Leveraging Allstate brand, customer base and capabilities
Expand Protection
Services
Revenue Sources
Property-Liability through earned premiums for auto, homeowners, renters, umbrella and other policies
Q1 2025 earned premium of $14 billion, up 9% versus the prior year period
Full Year 2024 earned premium of $54 billion, up 11% versus the prior year
Protection Services expands protection provided to customers by offering protection plans that cover items such as appliances, TVs and furniture as well as extend vehicle warranties, identity protection and roadside assistance
Q1 2025 revenue(1) of $860 million, up 14% versus the prior year
Full Year 2024 revenue(1) of $3 billion, up 17% versus the prior year
Investment portfolio of over $74 billion offers a stable source to revenue
Q1 2025 net investment income of $854 million, up 12% versus the prior year
Full Year 2024 net investment income of $3 billion, up 25% versus the prior year
(1) Excludes net gains and losses on investments and derivatives
The Allstate Corporation 2025 PAGE 2
2025 Operating Priorities Supported by Strong 2024 Financial Results
2024 Financial Results 2025 Operating Priorities
Deliver attractive return on capital
Revenue
Increase new business and retain
more customers
Net Income Adjusted Net Income*
Multi-year initiative to build low-cost digital insurer with broad distribution
Net Income Return on Allstate Common Equity
Net Income Per Common Share
The Allstate Corporation 2025 PAGE 3
Executing Transformative Growth Plan In Property-Liability Business
Transformative Growth:
Improve Customer Value
Lower cost structure improves competitive price position
Deploying differentiated "Affordable, Simple and Connected (ASC)" auto insurance products
Middle market standard and preferred auto and homeowners products (Custom360®) offered through independent agents
SAVE initiative designed to improve customer retention
Expand Customer Access
Create a broad distribution platform to grow in all channels
Improving Allstate agent productivity at a lower cost
Enhancing and expanding Allstate direct sales capabilities, along with lower pricing
Increasing independent agent business through National General
Increase Sophistication and Investment in Customer Acquisition
Improving customer acquisition costs relative to lifetime value
Maintain strong brand awareness and consideration
Deploy New Technology Ecosystems
Improving ease of use and self-service capabilities
Expanding connectivity through Allstate mobile app integration with third-party services
Drive Organizational Transformation
Building an agile, customer-focused workforce
Enhancing organizational designs to increase efficiency and support growth
The Allstate Corporation 2025 PAGE 4
Transformative Growth Execution Generates Strong New Business and Positions Allstate for Sustained Property-Liability Growth
New business channel distribution aligned with consumer shopping behavior
Exclusive agent Independent agent Direct Personal lines new issued applications
2019 2024
5.5 million 9.7 million
Capturing more customers through independent agent and direct channels after making strategic investments
Retention improvement remains a key focus to drive
growth
Supported by SAVE initiative designed to enhance customer experience and increase customer value
March 31, 2025 Variance to Prior
Quarter
Year
0.7%
(0.4)%
0.5%
2.5%
0.1%
0.5%
(11.3)%
(30.8)%
Policies in Force Growth
Auto Homeowners
Other personal lines Commercial lines
Property-Liability 0.5% 0.1%
The Allstate Corporation 2025 PAGE 5
Protection Services Provides Growth Platforms
$162(1)
million
Adjusted net income
7.0x
increase since 2018
($22)
million
5 Fortune 40 companies
Partnerships
Moderate sized U.S. retailers
18
Countries
3x
6
162
million
Policies in force
4.2x
39
million
Q1 2025
2017
Protection Plans broadening customer base and growing income
Protection Services segment comprised of 5 businesses, including Protection Plans
Protection Plans
SquareTrade (Protection Plans) acquired in 2017 for $1.4 billion as cornerstone of expanded protection offerings
Provides consumer protection for electronics, computers/tablets, TVs, mobile phones, major appliances and furniture from:
Mechanical or electrical failure, and in certain cases, accidental damage
Protection Plans Distribution
Large North American retailers at point of sale. Expanding internationally in Europe and Asia.
(1) Trailing twelve months
The Allstate Corporation 2025 PAGE 6
Strategic Capital Management Creates Shareholder Value
All businesses generate attractive returns at target profitability ratios
Protection Plans policy growth of 4x since acquisition
Transformative Growth strategy implemented to profitably increase market share
Organic growth
Expect to close divestiture of Group Health business for $1.25 billion in the second half of 2025
Divested Employer Voluntary Benefits business for $2 billion in April 2025
Acquired National General for $4 billion in 2021 providing access to independent agent channel and capabilities to serve a broader customer base
Acquired SquareTrade for $1.4 billion in 2017, generating significant growth for Protection Services
Strategic M&A
Consistently raised common dividend for past 15 years
Recently increased quarterly dividend 8.7% to $1.00 per common share in the first quarter of 2025
Increased common dividend by 50% in 2021
Have repurchased 84% of shares outstanding since going public and 45% of shares outstanding in past 10 years
Announced $1.5 billion share repurchase program in the first quarter of 2025
Repurchased 511 thousand shares for $104 million in the first quarter of 2025
Returning capital to shareholders
The Allstate Corporation 2025 PAGE 7
Forward-looking Statements
This presentation contains "forward-looking statements" that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like "plans," "seeks," "expects," "will," "should," "anticipates," "estimates," "intends," "believes," "likely," "targets" and other words with similar meanings. These statements may address, among other things, our strategy for growth, catastrophe exposure management, product development, investment results, regulatory approvals, market position, expenses, financial results, litigation and reserves. We believe that these statements are based on reasonable estimates, assumptions and plans. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements resulting from new information or future events or developments. In addition, forward-looking statements are subject to certain risks or uncertainties that could cause actual results to differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements include risks related to:
Insurance and Financial Services (1) actual claim costs exceeding current reserves; (2) unexpected increases in claim frequency or severity; (3) catastrophes and severe weather events; (4) limitations in analytical models used for loss cost estimates; (5) price competition and changes in regulation and underwriting standards; (6) regulatory limitations on rate increases and requirements to underwrite business and participate in loss sharing arrangements; (7) market risk and declines in credit quality of our investment portfolios; (8) economic and capital market conditions affecting investments;
(9) subjective determination of fair value and amount of credit losses for investments; (10) participation in indemnification programs, including state industry pools and facilities; (11) inability to mitigate the impact associated with changes in capital requirements; (12) a downgrade in financial strength ratings;
Business, Strategy and Operations (13) operations in markets that are highly
competitive; (14) changing consumer preferences; (15) new or changing technologies impacting the business; (16) inability to successfully deploy new technologies; (17) Transformative Growth strategy; (18) catastrophe management strategy; (19) restrictions on our subsidiaries' ability to pay dividends; (20) restrictions under terms of some of our securities on the ability to pay dividends or repurchase stock; (21) the availability and cost of reinsurance; (22) counterparty risk related to reinsurance; (23) acquisitions and divestitures of businesses; (24) intellectual property infringement, misappropriation and third-party claims; (25) reliance on vendors for products, services or protection of data and information (26) inability to attract, develop and retain talent;
Macro, Regulatory and Risk Environment (27) conditions in the global economy and capital markets, including changes in U.S. trade and tariff policy, newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or additional U.S. tariffs, and our ability to plan for and respond to the impact of those changes; (28) restrictions on liquidity or availability of credit on acceptable terms; (29) a large-scale pandemic, the occurrence of terrorism, military actions or political and social unrest or other disruptive or destabilizing events; (30) the failure in cyber or other information security controls; (31) failure of business continuity following a disaster or other event;
(32) changing climate and weather conditions; (33) evolving environmental, social and governance standards and expectations; (34) evolving privacy and data security regulations and increased focus on enforcement; (35) failure to manage risk and to timely detect and mitigate a cybersecurity event; (36) restrictive regulations and uncertainty around the interpretation and implementation of regulations in the U.S. and internationally; (37) regulatory reforms and stringent application of existing regulations: (38) losses from legal and regulatory actions; (39) changes in or the application of accounting standards and changes in tax laws; and (40) misconduct or fraudulent acts by employees, agents and third parties.
Additional information concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the "Risk Factors" section in our most recent annual report on Form 10-K.
The Allstate Corporation 2025 PAGE 9
Disclaimer
The Allstate Corporation published this content on June 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 05, 2025 at 12:15 UTC.