Allstate : Q2 2020 Investor Supplement - PDF

The Allstate Corporation

Investor Supplement

Second Quarter 2020

The condensed consolidated financial statements and financial exhibits included herein are unaudited. These condensed consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto included in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*). These measures are defined on the pages "Definitions of Non-GAAP Measures" and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.

The Allstate Corporation

Investor Supplement - Second Quarter 2020

Table of Contents

Consolidated Operations		Service Businesses
Condensed Consolidated Statements of Operations	1	Segment Results	25
Contribution to Income	2	Allstate Protection Plans Results	26
Segment Results	3,4	Allstate Life
Condensed Consolidated Statements of Financial Position	5
Book Value per Common Share	6	Segment Results and Other Statistics	27
Return on Common Shareholders' Equity	7	Return on Equity	28
Debt to Capital	8	Allstate Benefits
Policies in Force	9
Premiums Written for Allstate Protection and Service Businesses	10	Segment Results and Other Statistics	29
Property-Liability		Return on Equity	30
	Allstate Annuities
Results	11
Catastrophe Losses	12	Segment Results and Other Statistics	31
Prior Year Reserve Reestimates	13	Return on Equity	32
Catastrophe Losses included in Prior Year Reserve Reestimates	14	Corporate and Other
Allstate Protection
Impact of Net Rate Changes Approved on Premiums Written	15	Corporate and Other Segment Results	33
Allstate Brand Profitability Measures	16	Investments
Allstate Brand Statistics	17
Esurance Brand Profitability Measures and Statistics	18	Investment Position	34
Encompass Brand Profitability Measures and Statistics	19	Net Investment Income, Yields and Realized Capital Gains (Losses) (Pre-tax)	35
Auto Profitability Measures by Brand	20	Net Investment Income, Yields and Realized Capital Gains (Losses) (Pre-tax) by Segment	36,37
Homeowners Profitability Measures by Brand	21	Investment Position and Results by Strategy by Segment	38,39
Other Personal Lines Profitability Measures by Brand	22	Performance-Based Investments	40
Commercial Lines Profitability Measures	23	Definitions of Non-GAAP Measures	41,42
Discontinued Lines and Coverages
Reserves	24

The Allstate Corporation

Condensed Consolidated Statements of Operations

($ in millions, except per share data)										Three months ended												Six months ended
			June 30,			March 31,			Dec. 31,				Sept. 30,				June 30,				March 31,			June 30,			June 30,
			2020				2020			2019				2019				2019				2019				2020			2019
Revenues
Property and casualty insurance premiums (1)	$	9,223		$	9,235	$	9,194	$	9,094		$	8,986		$	8,802		$	18,458	$	17,788
Life premiums and contract charges (2)			604				617			627				625				621				628				1,221			1,249
Other revenue (3)			257				265			260				273				271				250				522			521
Net investment income			409				421			689				880				942				648				830			1,590
Realized capital gains (losses)			704				(462)			702				197				324				662				242			986
Total revenues			11,197				10,076			11,472				11,069				11,144				10,990				21,273			22,134
Costs and expenses			5,222				5,341			5,749				6,051				6,356				5,820				10,563			12,176
Property and casualty insurance claims and claims expense
Shelter-in-place payback expense			738				210			-				-				-				-				948			-
Life contract benefits			497				501			518				513				511				497				998			1,008
Interest credited to contractholder funds			200				132			153				169				156				162				332			318
Amortization of deferred policy acquisition costs			1,349				1,401			1,382				1,425				1,362				1,364				2,750			2,726
Operating costs and expenses			1,451				1,399			1,516				1,414				1,380				1,380				2,850			2,760
Pension and other postretirement remeasurement (gains) losses			73				318			(251)				225				125				15				391			140
Restructuring and related charges			14				5			14				-				9				18				19			27
Amortization of purchased intangibles			29				28			30				32				32				32				57			64
Impairment of purchased intangibles			-				-			51				-				55				-				-			55
Interest expense			79				81			82				80				82				83				160			165
Total costs and expenses			9,652				9,416			9,244				9,909				10,068				9,371				19,068			19,439
Gain on disposition of operations			1				1			3				-				2				1				2			3
Income from operations before income tax expense			1,546				661			2,231				1,160				1,078				1,620				2,207			2,698
Income tax expense			296				112			458				229				227				328				408			555
Net income			1,250				549			1,773				931				851				1,292				1,799			2,143
Preferred stock dividends			26				36			66				42				30				31				62			61
Net income applicable to common shareholders	$	1,224		$	513	$	1,707	$	889		$	821		$	1,261		$	1,737	$	2,082
Earnings per common share (4)
Net income applicable to common shareholders per common share -
Basic	$	3.90		$	1.62	$	5.32	$	2.71		$	2.47		$	3.79		$	5.50	$	6.27
Weighted average common shares - Basic			313.7				317.4			320.7				327.7				332.0				332.6				315.6			332.3
Net income applicable to common shareholders per common share -
Diluted	$	3.86		$	1.59	$	5.23	$	2.67		$	2.44		$	3.74		$	5.43	$	6.17
Weighted average common shares - Diluted			317.0				322.4			326.3				333.0				336.9				337.5				319.8			337.2
Cash dividends declared per common share	$	0.54		$	0.54	$	0.50	$	0.50		$	0.50		$	0.50		$	1.08	$	1.00

1. Property and casualty insurance premiums are reported in the Property-Liability and Service Businesses results and include auto, homeowners, other personal lines and commercial lines insurance products, including shared economy, as well as consumer product protection plans, roadside assistance, and finance and insurance products.
2. Life premiums and contract charges are reported in the Allstate Life, Allstate Benefits and Allstate Annuities results and include life insurance, voluntary accident and health insurance, and annuity products.
3. Other revenue primarily represents fees collected from policyholders relating to premium installment payments, commissions on sales of non-proprietary products, sales of identity protection services, fee-based services and other revenue transactions.
4. In accordance with GAAP, the quarter and year-to-date per share amounts are calculated discretely. Therefore, the sum of each quarter may not equal the year-to-date amount.

The Allstate Corporation 2Q20 Supplement

1

The Allstate Corporation

Contribution to Income

($ in millions, except per share data)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
Contribution to income			2020				2020			2019			2019				2019				2019				2020			2019
Net income applicable to common shareholders	$	1,224		$	513	$	1,707	$	889		$	821		$	1,261		$	1,737	$	2,082
Realized capital (gains) losses, after-tax			(554)				366			(553)			(155)				(256)				(524)				(188)			(780)
Pension and other postretirement remeasurement (gains)
losses, after-tax			58				251			(199)			179				99				11				309			110
Valuation changes on embedded derivatives not hedged,
after-tax			41				(14)			-			10				2				3				27			5
DAC and DSI amortization relating to realized capital
gains and losses and valuation changes on embedded
derivatives not hedged, after-tax			(11)				3			3			(1)				1				2				(8)			3
Reclassification of periodic settlements and accruals on
non-hedge derivative instruments, after-tax			-				-			-			(1)				-				(1)				-			(1)
Business combination expenses and the amortization of
purchased intangibles, after-tax			23				22			24			25				26				25				45			51
Impairment of purchased intangibles, after-tax			-				-			40			-				43				-				-			43
Gain on disposition of operations, after-tax			(1)				(1)			(2)			-				(1)				(1)				(2)			(2)
Adjusted net income*	$	780		$	1,140	$	1,020	$	946		$	735		$	776		$	1,920	$	1,511
Income per common share - Diluted
Net income applicable to common shareholders	$	3.86		$	1.59	$	5.23	$	2.67		$	2.44		$	3.74		$	5.43	$	6.17
Realized capital (gains) losses, after-tax			(1.75)				1.13			(1.69)			(0.47)				(0.76)				(1.55)				(0.59)			(2.31)
Pension and other postretirement remeasurement (gains)
losses, after-tax			0.18				0.78			(0.61)			0.54				0.29				0.03				0.97			0.33
Valuation changes on embedded derivatives not hedged,
after-tax			0.13				(0.04)			-			0.03				-				0.01				0.08			0.01
DAC and DSI amortization relating to realized capital
gains and losses and valuation changes on embedded
derivatives not hedged, after-tax			(0.03)				0.01			0.01			-				-				-				(0.02)			0.01
Reclassification of periodic settlements and accruals on
non-hedge derivative instruments, after-tax			-				-			-			-				-				-				-			-
Business combination expenses and the amortization of
purchased intangibles, after-tax			0.07				0.07			0.07			0.07				0.08				0.07				0.14			0.15
Impairment of purchased intangibles, after-tax			-				-			0.12			-				0.13				-				-			0.13
Gain on disposition of operations, after-tax			-				-			-			-				-				-				(0.01)			(0.01)
Adjusted net income*	$	2.46		$	3.54	$	3.13	$	2.84		$	2.18		$	2.30		$	6.00	$	4.48
Weighted average common shares - Diluted
		317.0				322.4			326.3			333.0				336.9				337.5				319.8			337.2

The Allstate Corporation 2Q20 Supplement

2

The Allstate Corporation

Consolidating Segment Results

		Allstate	Discontinued			Property-			Service		Allstate			Allstate			Allstate		Corporate	Intersegment
($ in millions)		Protection		Lines			Liability		Businesses		Life			Benefits			Annuities		and Other	Eliminations		Consolidated
													Three months ended June 30, 2020
Premiums and contract charges	$	8,863		$	-	$	8,863	$	360		$	339		$	263		$	2		$	-		$	-	$	9,827
Intersegment insurance premiums and service fees		-			-			-			35			-			-			-			-			(35)			-
Other revenue		182			-			182			51			24			-			-			-			-			257
Claims and claims expense		(5,137)			(2)			(5,139)			(85)			-			-			-			-			2			(5,222)
Shelter-in-Place Payback expense		(738)			-			(738)			-			-			-			-			-			-			(738)
Contract benefits and interest credited to contractholder funds		-			-			-			-			(352)			(132)			(213)			-			-			(697)
Amortization of deferred policy acquisition costs		(1,149)			-			(1,149)			(160)			(4)			(35)			(1)			-			-			(1,349)
Operating costs and expenses		(1,103)			(1)			(1,104)			(163)			(75)			(110)			(7)			(25)			33			(1,451)
Pension and other postretirement remeasurement gains (losses)		-			-			-			-			-			-			-			(73)			-			(73)
Restructuring and related charges		(8)			-			(8)			(3)			(2)			(1)			-			-			-			(14)
Amortization of purchased intangibles		(3)			-			(3)			(26)			-			-			-			-			-			(29)
Impairment of purchased intangibles		-			-			-			-			-			-			-			-			-			-
Interest expense		-			-			-			-			-			-			-			(79)			-			(79)
Underwriting income (loss)	$	907		$	(3)			904
Net investment income								178			11			123			20			66			11			-			409
Realized capital gains (losses)								382			19			19			11			245			28			-			704
Gain on disposition of operations								-			-			-			-			1			-			-			1
Income tax (expense) benefit								(292)			(7)			(8)			(4)			(15)			30			-			(296)
Preferred stock dividends								-			-			-			-			-			(26)			-			(26)
Net income (loss) applicable to common shareholders							$	1,172		$	32		$	64		$	12		$	78		$	(134)		$	-		$	1,224
Realized capital (gains) losses, after-tax								(299)			(15)			(16)			(7)			(194)			(23)			-			(554)
Pension and other postretirement remeasurement (gains) losses, after-tax								-			-			-			-			-			58						58
Valuation changes on embedded derivatives not hedged, after-tax								-			-			35			-			6			-			-			41
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on
embedded derivatives not hedged, after-tax								-			-			(11)			-			-			-			-			(11)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax				-			-			-			-			-			-			-			-
Business combination expenses and the amortization of purchased intangibles, after-tax					2			21			-			-			-			-			-			23
Impairment of purchased intangibles, after-tax								-			-			-			-			-			-			-			-
Gain on disposition of operations, after-tax								-			-			-			-			(1)			-			-			(1)
Adjusted net income (loss) *							$	875		$	38 (1)	$	72	(1)	$	5	(1)	$	(111) (1)	$	(99) (1)	$	-	$	780

													Three months ended June 30, 2019
Premiums and contract charges	$	8,681		$	-	$	8,681	$	305		$	333		$	284		$	4		$	-		$	-	$	9,607
Intersegment insurance premiums and service fees		-			-			-			33				-			-			-			-			(33)			-
Other revenue		190			-			190			48				33			-			-			-			-			271
Claims and claims expense		(6,269)			(3)			(6,272)			(86)				-			-			-			-			2			(6,356)
Contract benefits and interest credited to contractholder funds		-			-			-			-				(286)			(151)			(230)			-			-			(667)
Amortization of deferred policy acquisition costs		(1,163)			-			(1,163)			(134)				(29)			(35)			(1)			-			-			(1,362)
Operating costs and expenses		(1,059)			-			(1,059)			(158)				(91)			(71)			(8)			(24)			31			(1,380)
Pension and other postretirement remeasurement gains (losses)		-			-			-			-				-			-			-			(125)			-			(125)
Restructuring and related charges		(9)			-			(9)			1				(1)			-			-			-			-			(9)
Amortization of purchased intangibles		(1)			-			(1)			(31)				-			-			-			-			-			(32)
Impairment of purchased intangibles		-			-			-			(55)				-			-			-			-			-			(55)
Interest expense		-			-			-			-				-			-			-			(82)			-			(82)
Underwriting income (loss)	$	370		$	(3)			367
Net investment income								471			10				125			21			296			19			-			942
Realized capital gains (losses)								256			9				1			2			48			8			-			324
Gain on disposition of operations								-			-				-			-			2			-			-			2
Income tax (expense) benefit								(231)			12				(18)			(11)			(23)			44			-			(227)
Preferred stock dividends								-			-				-			-			-			(30)			-			(30)
Net income (loss) applicable to common shareholders							$	863		$	(46)			$	67		$	39		$	88		$	(190)		$	-		$	821
Realized capital (gains) losses, after-tax								(204)			(6)				-			(2)			(37)			(7)			-			(256)
Pension and other postretirement remeasurement (gains) losses, after-tax								-			-				-			-			-			99			-			99
Valuation changes on embedded derivatives not hedged, after-tax								-			-				-			-			2			-			-			2
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on
embedded derivatives not hedged, after-tax								-			-				1			-			-			-			-			1
Reclassification of periodic settlements and accruals on non-hedge derivative instruments,
after-tax								-			-				-			-			-			-			-			-
Business combination expenses and the amortization of purchased intangibles, after-tax					1			25				-			-			-			-			-			26
Impairment of purchased intangibles, after-tax								-			43				-			-			-			-			-			43
Gain on disposition of operations, after-tax								-			-				-			-			(1)			-			-			(1)
Adjusted net income (loss) *						$	660	$	16	(1)	$	68	(1)	$	37	(1)	$	52	(1)	$	(98) (1)	$	-	$	735

(1) Adjusted net income is the segment measure used for each business.

The Allstate Corporation 2Q20 Supplement

3

The Allstate Corporation

Consolidating Segment Results

		Allstate	Discontinued			Property-			Service		Allstate			Allstate			Allstate		Corporate	Intersegment
($ in millions)		Protection		Lines			Liability		Businesses		Life			Benefits			Annuities		and Other	Eliminations		Consolidated
													Six months ended June 30, 2020
Premiums and contract charges	$	17,744		$	-	$	17,744	$	714		$	672		$	545		$	4		$	-		$	-	$	19,679
Intersegment insurance premiums and service fees		-			-			-			73			-			-			-			-			(73)			-
Other revenue		363			-			363			103			56			-			-			-			-			522
Claims and claims expense		(10,386)			(4)			(10,390)			(177)			-			-			-			-			4			(10,563)
Shelter-in-Place Payback expense		(948)			-			(948)			-			-			-			-			-			-			(948)
Contract benefits and interest credited to contractholder funds		-			-			-			-			(620)			(282)			(428)			-			-			(1,330)
Amortization of deferred policy acquisition costs		(2,316)			-			(2,316)			(313)			(38)			(80)			(3)			-			-			(2,750)
Operating costs and expenses		(2,186)			(2)			(2,188)			(324)			(159)			(185)			(13)			(50)			69			(2,850)
Pension and other postretirement remeasurement gains (losses)		-			-			-			-			-			-			-			(391)			-			(391)
Restructuring and related charges		(12)			-			(12)			(3)			(3)			(1)			-			-			-			(19)
Amortization of purchased intangibles		(4)			-			(4)			(53)			-			-			-			-			-			(57)
Impairment of purchased intangibles		-			-			-			-			-									-			-			-
Interest expense		-			-			-			-			-			-			-			(160)			-			(160)
Underwriting income (loss)	$	2,255		$	(6)			2,249
Net investment income								380			21			251			40			113			25			-			830
Realized capital gains (losses)								279			(5)			(12)			(3)			(24)			7			-			242
Gain on disposition of operations								-			-			-			-			2			-			-			2
Income tax (expense) benefit								(574)			(7)			(19)			(8)			78			122			-			(408)
Preferred stock dividends								-			-			-			-			-			(62)			-			(62)
Net income (loss) applicable to common shareholders							$	2,334		$	29		$	128		$	26		$	(271)		$	(509)		$	-		$	1,737
Realized capital (gains) losses, after-tax								(217)			4			9			3			19			(6)			-			(188)
Pension and other postretirement remeasurement (gains) losses, after-tax								-			-			-			-			-			309			-			309
Valuation changes on embedded derivatives not hedged, after-tax								-			-			23			-			4			-			-			27
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on
embedded derivatives not hedged, after-tax								-			-			(8)			-			-			-			-			(8)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax				-			-			-			-			-			-			-			-
Business combination expenses and the amortization of purchased intangibles, after-tax					3			42			-			-			-			-			-			45
Impairment of purchased intangibles, after-tax								-			-			-			-			-			-			-			-
Gain on disposition of operations, after-tax								-			-			-			-			(2)			-			-			(2)
Adjusted net income (loss) *							$	2,120		$	75	(1)	$	152	(1)	$	29	(1)	$	(250)	(1)	$	(206)	(1)	$	-		$	1,920

													Six months ended June 30, 2019
Premiums and contract charges	$	17,188		$	-	$	17,188	$	600		$	670		$	572		$	7		$	-		$	-	$	19,037
Intersegment insurance premiums and service fees		-			-			-			66			-			-			-			-			(66)			-
Other revenue		366			-			366			95			60			-			-			-			-			521
Claims and claims expense		(11,997)			(5)			(12,002)			(178)			-			-			-			-			4			(12,176)
Contract benefits and interest credited to contractholder funds		-			-			-			-			(572)			(305)			(449)			-			-			(1,326)
Amortization of deferred policy acquisition costs		(2,327)			-			(2,327)			(261)			(57)			(78)			(3)			-			-			(2,726)
Operating costs and expenses		(2,128)			(1)			(2,129)			(309)			(182)			(142)			(15)			(45)			62			(2,760)
Pension and other postretirement remeasurement gains (losses)		-			-			-			-			-			-			-			(140)			-			(140)
Restructuring and related charges		(27)			-			(27)			1			(1)			-			-			-			-			(27)
Amortization of purchased intangibles		(2)			-			(2)			(62)			-			-			-			-			-			(64)
Impairment of purchased intangibles		-			-			-			(55)			-			-			-			-			-			(55)
Interest expense		-			-			-			-			-			-			-			(165)			-			(165)
Underwriting income (loss)	$	1,073		$	(6)			1,067
Net investment income								762			19			252			40			486			31			-			1,590
Realized capital gains (losses)								753			17			(4)			6			204			10			-			986
Gain on disposition of operations								-			-			-			-			3			-			-			3
Income tax (expense) benefit								(537)			15			(32)			(20)			(48)			67			-			(555)
Preferred stock dividends								-			-			-			-			-			(61)			-			(61)
Net income (loss) applicable to common shareholders							$	2,045		$	(52)		$	134		$	73		$	185		$	(303)		$	-		$	2,082
Realized capital (gains) losses, after-tax								(597)			(13)			4			(5)			(161)			(8)			-			(780)
Pension and other postretirement remeasurement (gains) losses, after-tax								-			-			-			-			-			110			-			110
Valuation changes on embedded derivatives not hedged, after-tax								-			-			-			-			5			-			-			5
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on
embedded derivatives not hedged, after-tax								-			-			3			-			-			-			-			3
Reclassification of periodic settlements and accruals on non-hedge derivative instruments,								-			-			-			-			-			-
after-tax								(1)															(1)
Business combination expenses and the amortization of purchased intangibles, after-tax					2			49			-			-			-			-			-			51
Impairment of purchased intangibles, after-tax								-			43			-			-			-			-			-			43
Gain on disposition of operations, after-tax								-			-			-			-			(2)			-			-			(2)
Adjusted net income (loss) *							$	1,449		$	27	(1)	$	141	(1)	$	68	(1)	$	27	(1)	$	(201)	(1)	$	-		$	1,511

(1) Adjusted net income is the segment measure used for each business.

The Allstate Corporation 2Q20 Supplement

4

The Allstate Corporation

Condensed Consolidated Statements of Financial Position

($ in millions)		June 30, 2020			March 31, 2020			Dec. 31, 2019			Sept. 30, 2019			June 30, 2019
Assets
Investments
Fixed income securities, at fair value (1)	$	64,448	$	59,857	$	59,044	$	59,259	$	58,484
Equity securities, at fair value (2)		4,212			3,701			8,162			8,206			7,906
Mortgage loans, net		4,774			4,759			4,817			4,694			4,687
Limited partnership interests		6,941			7,087			8,078			7,990			7,818
Short-term, at fair value		5,344			5,671			4,256			5,254			3,740
Other, net		3,918			3,767			4,005			3,904			3,856
Total investments		89,637			84,842			88,362			89,307			86,491
Cash		547			338			338			587			599
Premium installment receivables, net		6,367			6,401			6,472			6,558			6,380
Deferred policy acquisition costs		4,683			4,742			4,699			4,683			4,667
Reinsurance and indemnification recoverables, net		9,290			9,214			9,211			9,363			9,292
Accrued investment income		605			593			600			613			633
Property and equipment, net		1,100			1,123			1,145			1,092			1,058
Goodwill		2,544			2,544			2,545			2,545			2,547
Other assets, net		3,587			3,876			3,534			3,383			3,649
Separate Accounts		2,906			2,434			3,044			2,942			3,058
Total assets	$	121,266	$	116,107	$	119,950	$	121,073	$	118,374
Liabilities
Reserve for property and casualty insurance claims and claims expense	$	27,426	$	27,148	$	27,712	$	28,076	$	28,105
Reserve for life-contingent contract benefits		12,471			12,244			12,300			12,378			12,337
Contractholder funds		17,396			17,404			17,692			17,804			17,964
Unearned premiums		15,448			14,999			15,343			15,343			14,752
Claim payments outstanding		882			892			929			952			915
Deferred income taxes		842			331			1,154			1,079			997
Other liabilities and accrued expenses		10,275			9,849			9,147			9,729			9,142
Long-term debt		6,634			6,633			6,631			6,630			6,628
Separate Accounts		2,906			2,434			3,044			2,942			3,058
Total liabilities		94,280			91,934			93,952			94,933			93,898
Equity
Preferred stock and additional capital paid-in(3)(4)		1,970			1,970			2,248			3,052			1,930
Common stock (5)		9			9			9			9			9
Additional capital paid-in		3,541			3,519			3,463			3,511			3,477
Retained income		49,380			48,326			48,074			46,527			45,803
Deferred ESOP expense		-			-			-			(3)			(3)
Treasury stock, at cost (6)		(30,542)			(30,209)			(29,746)			(29,063)			(28,500)
Accumulated other comprehensive income:
Unrealized net capital gains and losses		2,602			530			1,887			2,023			1,654
Unrealized foreign currency translation adjustments		(89)			(98)			(59)			(50)			(40)
Unamortized pension and other postretirement prior service credit		115			126			122			134			146
Total accumulated other comprehensive income		2,628			558			1,950			2,107			1,760
Total shareholders' equity		26,986			24,173			25,998			26,140			24,476
Total liabilities and shareholders' equity	$	121,266		$	116,107		$	119,950		$	121,073		$	118,374

1. Amortized cost, net was $60,534, $58,945, $56,293, $56,263 and $56,008 as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively.
2. Cost was $3,817, $3,631, $6,568, $6,930 and $6,673 as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively.
3. Preferred shares outstanding were 81.0 thousand at June 30, 2020 and March 31, 2020, 92.5 thousand at December 31, 2019, 125.8 thousand at September 30, 2019 and 79.8 thousand at June 30, 2019.
4. On January 15, 2020, we redeemed all 11,500 shares of our Fixed Rate Noncumulative Perpetual Preferred Stock, Series A.
5. Common shares outstanding were 312,720,127; 315,485,956; 318,791,191; 324,988,765 and 329,903,875 as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively.
6. Treasury shares outstanding were 587 million, 585 million, 581 million, 575 million and 570 million as of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively.

The Allstate Corporation 2Q20 Supplement

5

The Allstate Corporation

Book Value per Common Share

($ in millions, except per share data)			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,
Book value per common share			2020				2020			2019			2019				2019				2019
Numerator:
Common shareholders' equity (1)	$	25,016		$	22,203	$	23,750	$	23,088		$	22,546		$	21,488
Denominator:
Common shares outstanding and dilutive potential
common shares outstanding			315.8				318.7			324.8			330.6				335.1				337.9
Book value per common share	$	79.21		$	69.67	$	73.12	$	69.84		$	67.28		$	63.59
Book value per common share, excluding the impact of
unrealized net capital gains and losses on fixed income
securities
Numerator:
Common shareholders' equity	$	25,016		$	22,203	$	23,750	$	23,088		$	22,546		$	21,488
Less: Unrealized net capital gains and losses on
fixed income securities			2,610				534			1,893			2,028				1,658				975
Adjusted common shareholders' equity	$	22,406		$	21,669	$	21,857	$	21,060		$	20,888		$	20,513
Denominator:
Common shares outstanding and dilutive potential
common shares outstanding			315.8				318.7			324.8			330.6				335.1				337.9
Book value per common share, excluding the impact of
unrealized net capital gains and losses on fixed income
securities *	$	70.95		$	67.99	$	67.29	$	63.70		$	62.33		$	60.71

1. Excludes equity related to preferred stock of $1,970 million at June 30, 2020 and March 31, 2020, $2,248 million at December 31, 2019, $3,052 million at September 30, 2019 and $1,930 million at June 30, 2019 and March 31, 2019.

The Allstate Corporation 2Q20 Supplement

6

The Allstate Corporation

Return on Common Shareholders' Equity

($ in millions)										Twelve months ended
			June 30,			March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,
			2020				2020			2019			2019				2019				2019
Return on common shareholders' equity
Numerator:
Net income applicable to common shareholders (1)(2)	$	4,333		$	3,930		$	4,678		$	2,386			$	2,439		$	2,296
Denominator:
Beginning common shareholders' equity	$	22,546		$	21,488		$	19,382		$	21,356			$	20,819		$	20,970
Ending common shareholders' equity (3)			25,016				22,203			23,750			23,088				22,546				21,488
Average common shareholders' equity (4)	$	23,781		$	21,846		$	21,566		$	22,222			$	21,683		$	21,229
Return on common shareholders' equity			18.2	%			18.0	%		21.7	%		10.7	%			11.2	%			10.8	%
Adjusted net income return on common shareholders' equity
Numerator:
Adjusted net income * (1)	$	3,886		$	3,841		$	3,477		$	3,009			$	2,822		$	2,797
Denominator:
Beginning common shareholders' equity	$	22,546		$	21,488		$	19,382		$	21,356			$	20,819		$	20,970
Less: Unrealized net capital gains and losses			1,654				972			(2)			(16)				54				187
Adjusted beginning common shareholders' equity			20,892				20,516			19,384			21,372				20,765				20,783
Ending common shareholders' equity			25,016				22,203			23,750			23,088				22,546				21,488
Less: Unrealized net capital gains and losses			2,602				530			1,887			2,023				1,654				972
Adjusted ending common shareholders' equity			22,414				21,673			21,863			21,065				20,892				20,516
Average adjusted common shareholders' equity (4)	$	21,653		$	21,095		$	20,624		$	21,219			$	20,829		$	20,650
Adjusted net income return on common shareholders' equity *			17.9	%			18.2	%		16.9	%		14.2	%			13.5	%			13.5	%

1. Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period.
2. Includes a $2 million Tax legislation expense for the period ended September 30, 2019 and $29 million Tax legislation benefit for the period ended June 30, 2019 and March 31, 2019.
3. Excludes equity related to preferred stock of $1,970 million at June 30, 2020 and March 31, 2020, $2,248 million at December 31, 2019, $3,052 million at September 30, 2019 and $1,930 million at June 30, 2019 and March 31, 2019.
4. Average common shareholders' equity and average adjusted common shareholders' equity are determined using a two-point average, with the beginning and ending common shareholders' equity and adjusted common shareholders' equity, respectively, for the twelve-month period as data points.

The Allstate Corporation 2Q20 Supplement

7

The Allstate Corporation

Debt to Capital

			June 30,			March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,
($ in millions)			2020				2020			2019			2019				2019				2019
Debt
Short-term debt		$	-			$	-		$	-		$	-			$	-		$	-
Long-term debt			6,634				6,633			6,631			6,630				6,628				6,453
Total debt		$	6,634			$	6,633		$	6,631		$	6,630			$	6,628			$	6,453
Capital resources
Debt		$	6,634			$	6,633		$	6,631		$	6,630			$	6,628		$	6,453
Shareholders' equity
Preferred stock and additional capital paid-in			1,970				1,970			2,248			3,052				1,930				1,930
Common stock			9				9			9			9				9				9
Additional capital paid-in			3,541				3,519			3,463			3,511				3,477				3,291
Retained income			49,380				48,326			48,074			46,527				45,803				45,148
Deferred ESOP expense			-				-			-			(3)				(3)				(3)
Treasury stock			(30,542)				(30,209)			(29,746)			(29,063)				(28,500)				(28,042)
Unrealized net capital gains and losses			2,602				530			1,887			2,023				1,654				972
Unrealized foreign currency translation adjustments			(89)				(98)			(59)			(50)				(40)				(44)
Unamortized pension and other postretirement prior service credit			115				126			122			134				146				157
Total shareholders' equity			26,986				24,173			25,998			26,140				24,476				23,418
Total capital resources		$	33,620			$	30,806		$	32,629		$	32,770			$	31,104		$	29,871
Ratio of debt to shareholders' equity
		24.6	%			27.4	%		25.5	%		25.4	%			27.1	%			27.6	%
Ratio of debt to capital resources			19.7	%			21.5	%		20.3	%		20.2	%			21.3	%			21.6	%

The Allstate Corporation 2Q20 Supplement

8

The Allstate Corporation

Policies in Force and Other Statistics

		June 30,		March 31,		Dec. 31,		Sept. 30,			June 30,			March 31,
	2020		2020	2019	2019		2019		2019
Policies in force statistics (in thousands) (1)
Allstate Protection
Allstate brand	20,464		20,323	20,398	20,339		20,301		20,145
Auto
Homeowners	6,284		6,254	6,254	6,237		6,221		6,198
Landlord	649		653	658	663		670		676
Renters	1,693		1,684	1,683	1,679		1,668		1,655
Condominium	688		676	676	673		670		668
Other	1,339		1,326	1,327	1,326		1,319		1,307
Other personal lines		4,369			4,339		4,344		4,341			4,327			4,306
Commercial lines	221		224	227	228		229		230
Total		31,338			31,140		31,223		31,145			31,078			30,879
Esurance brand	1,514		1,503	1,515	1,543		1,548		1,548
Auto
Homeowners	107		106	105	104		101		98
Other personal lines	46		46	46	48		48		48
Total		1,667			1,655		1,666		1,695			1,697			1,694
Encompass brand	473		485	493	496		497		499
Auto
Homeowners	225		230	234	235		236		237
Other personal lines	74		75	76	77		77		78
Total		772			790		803		808			810			814
Allstate Protection policies in force	33,777		33,585	33,692	33,648		33,585		33,387
Service Businesses	120,301		107,124	99,632	89,783		83,968		77,866
Allstate Protection Plans
Allstate Dealer Services	4,101		4,096	4,205	4,224		4,253		4,294
Allstate Roadside Services	562		576	599	617		635		649
Allstate Identity Protection (2)	2,312		1,932	1,511	1,318		1,260		1,211
Total		127,276			113,728		105,947		95,942			90,116			84,020
Allstate Life	1,892		1,902	1,923	1,926		1,933		1,936
Allstate Benefits	4,410		4,309	4,183	4,287		4,296		4,322
Allstate Annuities		185			188		192		197			201			206
Total policies in force		167,540			153,712		145,937		136,000			130,131			123,871
Agency data (3)	12,600		12,700
Total Allstate agencies (4)		12,900	12,800		12,700		12,700
Licensed sales professionals (5)	24,700		25,800	27,100	26,800		26,700		26,800
Allstate independent agencies (6)	4,400		3,800	3,400	3,300		3,200		3,000
Encompass independent agencies	3,000		2,900	2,800	2,800		2,800		2,700

1. Policy counts are based on items rather than customers.
2. • A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy.
   • Commercial lines PIF for shared economy agreements typically reflect contracts that cover multiple drivers as opposed to individual drivers.
   • Non-proprietaryproducts offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included.
   • Allstate Roadside Services reflects memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner.
   • Allstate Dealer Services reflects service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators ("TPAs") as the customer relationship is managed by the TPAs.
   • Allstate Protection Plans represents active consumer product protection plans.
   • Allstate Identity Protection reflects individual customer counts for identity protection products.
   • Allstate Life insurance policies and Allstate Annuities in force reflect the number of contracts in force excluding sold blocks of business that remain on the balance sheet due to the dispositions of the business being effected through reinsurance arrangements.
   • Allstate Benefits reflects certificate counts as opposed to group counts.
3. As of June 30, 2020, total customer counts included free services provided to 203 thousand Allstate Identity Protection subscribers for the remainder of 2020 as part of the continued support during the Coronavirus pandemic.
4. Rounded to the nearest hundred.
5. Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and employee producers in Canada.
6. Represents employees of Allstate agencies who are licensed to sell Allstate products.
7. Includes 948 and 1,102 engaged Allstate independent agencies ("AIAs") as of June 30, 2020 and December 31, 2019, respectively. Engaged AIAs, as currently determined, include those that achieve a minimum number of new policies written.

The Allstate Corporation 2Q20 Supplement

9

The Allstate Corporation

Premiums Written for Allstate Protection and Service Businesses

($ in millions)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
Allstate Protection			2020				2020			2019			2019				2019				2019				2020			2019
Allstate brand (1)	$	5,572		$	5,574	$	5,470	$	5,599		$	5,472		$	5,395		$	11,146	$	10,867
Auto
Homeowners			2,144				1,618			1,861			2,143				2,076				1,565				3,762			3,641
Landlord			137				125			135			141				134				124				262			258
Renters			81				71			71			87				78				69				152			147
Condominium			87				64			70			78				75				62				151			137
Other			200				151			158			186				191				144				351			335
Other personal lines			505				411			434			492				478				399				916			877
Commercial lines			170				221			243			238				236				185				391			421
Total			8,391				7,824			8,008			8,472				8,262				7,544				16,215			15,806
Esurance brand			482				517			460			525				469				532				999			1,001
Auto
Homeowners			34				27			27			35				32				25				61			57
Other personal lines			2				2			2			2				2				2				4			4
Total			518				546			489			562				503				559				1,064			1,062
Encompass brand			136				118			127			147				146				120				254			266
Auto
Homeowners			106				87			94			110				111				86				193			197
Other personal lines			21				17			19			21				21				18				38			39
Total			263				222			240			278				278				224				485			502
Total Allstate Protection			6,190				6,209			6,057			6,271				6,087				6,047				12,399			12,134
Auto
Homeowners			2,284				1,732			1,982			2,288				2,219				1,676				4,016			3,895
Other personal lines			528				430			455			515				501				419				958			920
Commercial lines			170				221			243			238				236				185				391			421
Total			9,172				8,592			8,737			9,312				9,043				8,327				17,764			17,370
Discontinued Lines and Coverages			-				-			-			-				-				-				-			-
Total Property-Liability		$	9,172			$	8,592		$	8,737		$	9,312			$	9,043			$	8,327			$	17,764		$	17,370
Service Businesses (2)	$	310		$	221	$	278	$	181		$	167		$	206		$	531	$	373
Allstate Protection Plans
Allstate Dealer Services			113				107			123			126				120				99				220			219
Allstate Roadside Services			44				51			52			57				63				63				95			126
Total			467				379			453			364				350				368				846			718
Total premiums written	$	9,639		$	8,971	$	9,190	$	9,676		$	9,393		$	8,695		$	18,610	$	18,088
Non-proprietary premiums
Ivantage (3)	$	1,926		$	1,916	$	1,901	$	1,871		$	1,840		$	1,806		$	1,926	$	1,840
Answer Financial (4)			146				144			134			153				150				145				290			295
(1) Canada premiums included in Allstate brand	$	297		$	239	$	253	$	291		$	287		$	205		$	536	$	492
Auto
Homeowners			97				67			79			93				87				58				164			145
Other personal lines			35				24			30			32				28				20				59			48
Total		$	429			$	330		$	362		$	416			$	402			$	283			$	759		$	685

1. There are no premiums written for Arity or Allstate Identity Protection, which are part of the Service Businesses segment. Revenues for Arity and Allstate Identity Protection are primarily reported as intersegment service fees and other revenue.
2. Represents non-proprietary premiums under management as of the end of the period related to personal and commercial line products offered by Ivantage when an Allstate product is not available. Fees for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019 were $44 million, $39 million, $41 million, $45 million, $45 million and $37 million, respectively.
3. Represents non-proprietary premiums written for the period. Commissions earned for the three and six months ended June 30, 2020 were $17 million and $35 million, respectively.

The Allstate Corporation 2Q20 Supplement

10

The Allstate Corporation

Property-Liability Results

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Premiums written	$	9,172		$	8,592	$	8,737	$	9,312		$	9,043		$	8,327		$	17,764	$	17,370
Decrease (increase) in unearned premiums			(349)				370			129			(538)				(384)				179				21			(205)
Other			40				(81)			7			8				22				1				(41)			23
Premiums earned			8,863				8,881			8,873			8,782				8,681				8,507				17,744			17,188
Other revenue			182				181			180			195				190				176				363			366
Claims and claims expense			(5,139)				(5,251)			(5,660)			(5,960)				(6,272)				(5,730)				(10,390)			(12,002)
Shelter-in-Place Payback expense			(738)				(210)			-			-				-				-				(948)			-
Amortization of deferred policy acquisition costs			(1,149)				(1,167)			(1,155)			(1,167)				(1,163)				(1,164)				(2,316)			(2,327)
Operating costs and expenses			(1,107)				(1,085)			(1,175)			(1,114)				(1,060)				(1,071)				(2,192)			(2,131)
Restructuring and related charges			(8)				(4)			(12)			1				(9)				(18)				(12)			(27)
Impairment of purchased intangibles			-				-			(51)			-				-				-				-			-
Underwriting income (1)			904				1,345			1,000			737				367				700				2,249			1,067
Net investment income			178				202			323			448				471				291				380			762
Income tax expense on operations			(209)				(303)			(270)			(236)				(179)				(202)				(512)			(381)
Realized capital gains (losses), after-tax			299				(82)			437			127				204				393				217			597
Net income applicable to common shareholders		$	1,172			$	1,162		$	1,490		$	1,076			$	863			$	1,182			$	2,334		$	2,045
Catastrophe losses	$	1,186		$	211	$	295	$	510		$	1,072		$	680		$	1,397	$	1,752
Amortization of purchased intangibles	$	3		$	1	$	1	$	1		$	1		$	1		$	4	$	2
Operating ratios
Loss ratio			58.0				59.1			63.8			67.9				72.3				67.4				58.5			69.8
Expense ratio (2)			31.8				25.8			24.9			23.7				23.5				24.4				28.8			24.0
Combined ratio			89.8				84.9			88.7			91.6				95.8				91.8				87.3			93.8
Loss ratio			58.0				59.1			63.8			67.9				72.3				67.4				58.5			69.8
Less: effect of catastrophe losses			13.4				2.4			3.3			5.8				12.3				8.0				7.9			10.2
effect of prior year non-catastrophe reserve reestimates			(0.4)				0.3			(0.1)			(0.5)				(0.9)				(0.4)				(0.1)			(0.7)
Underlying loss ratio *			45.0				56.4			60.6			62.6				60.9				59.8				50.7			60.3
Reconciliation of combined ratio to underlying combined ratio
Combined ratio			89.8				84.9			88.7			91.6				95.8				91.8				87.3			93.8
Effect of catastrophe losses			(13.4)				(2.4)			(3.3)			(5.8)				(12.3)				(8.0)				(7.9)			(10.2)
Effect of prior year non-catastrophe reserve reestimates			0.4				(0.3)			0.1			0.5				0.9				0.4				0.1			0.7
Effect of impairment of purchased intangibles			-				-			(0.6)			-				-				-				-			-
Underlying combined ratio *			76.8				82.2			84.9			86.3				84.4				84.2				79.5			84.3
Effect of restructuring and related charges on combined ratio			0.1				-			0.1			-				0.1				0.2				0.1			0.2
Effect of Discontinued Lines and Coverages on combined ratio			-				0.1			-			1.1				0.1				0.1				-			-
Effect of Shelter-in-Place Payback expense on combined and
expense ratios			8.3				2.4			-			-				-				-				5.3			-
(1) Underwriting income (loss)
Allstate brand	$	829		$	1,314	$	1,024	$	858		$	367		$	702		$	2,143	$	1,069
Esurance brand			72				19			(37)			(6)				(3)				3				91			-
Encompass brand			6				14			17			(15)				7				(2)				20			5
Answer Financial			-				1			(1)			(1)				(1)				-				1			(1)
Total underwriting income for Allstate Protection			907				1,348			1,003			836				370				703				2,255			1,073
Discontinued Lines and Coverages			(3)				(3)			(3)			(99)				(3)				(3)				(6)			(6)
Total underwriting income for Property-Liability	$	904		$	1,345	$	1,000	$	737		$	367		$	700		$	2,249	$	1,067

1. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

11

The Allstate Corporation

Property-Liability Catastrophe Losses

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
Allstate Protection			2020				2020			2019			2019				2019				2019				2020			2019
Allstate brand	$	124		$	12		$	2		$	130		$	179		$	68		$	136	$	247
Auto
Homeowners (1)			890				170	(3)		253	(3)		292				781				511				1,060			1,292
Other personal lines			86				12			19			23				57				64				98			121
Commercial lines			9				2			5			2				4				1				11			5
Total			1,109				196			279			447				1,021				644				1,305			1,665
Esurance brand			7				1			2			9				10				3				8			13
Auto
Homeowners			11				2			2			7				15				3				13			18
Total			18				3			4			16				25				6				21			31
Encompass brand			4				-			-			4				3				3				4			6
Auto
Homeowners			52				11			12			41				22				25				63			47
Other personal lines			3				1			-			2				1				2				4			3
Total			59				12			12			47				26				30				71			56
Allstate Protection			135				13			4			143				192				74				148			266
Auto
Homeowners			953				183			267			340				818				539				1,136			1,357
Other personal lines			89				13			19			25				58				66				102			124
Commercial lines			9				2			5			2				4				1				11			5
Total			1,186				211			295			510				1,072				680				1,397			1,752
Discontinued Lines and Coverages			-				-			-			-				-				-				-			-
Total Property-Liability	$	1,186		$	211		$	295		$	510		$	1,072		$	680		$	1,397	$	1,752
Effect of catastrophe losses on
combined ratio (2)
Allstate Protection			1.5				0.2			-			1.6				2.2				0.9				0.8			1.6
Auto
Homeowners			10.8				2.1			3.0			3.9				9.4				6.3				6.4			7.9
Other personal lines			1.0				0.1			0.2			0.3				0.7				0.8				0.6			0.7
Commercial lines			0.1				-			0.1			-				-				-				0.1			-
Total			13.4				2.4			3.3			5.8				12.3				8.0				7.9			10.2
10-year average effect of catastrophe							6.1
losses on combined ratio			14.4						5.9			6.9				14.0				6.8				8.3			8.5

1. Includes $8 million and $7 million of reduction of reinsurance premiums for the three months ended December 31, 2019 and September 30, 2019, respectively, and $5 million and $15 million of reinstatement reinsurance premiums for the three months ended June 30, 2019 and March 31, 2019, respectively, related to the 2018 Camp Fire.
2. Calculated using the total premiums earned for Allstate Protection for the respective period. Discontinued Lines and Coverages does not have premiums earned.
3. Includes $1 million and $12 million for Texas Windstorm Insurance Association assessments related to Hurricane Harvey which occurred in third quarter 2017 for the three months ended March 31, 2020 and December 31, 2019, respectively.

The Allstate Corporation 2Q20 Supplement

12

The Allstate Corporation

Property-Liability Prior Year Reserve Reestimates

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Prior year reserve reestimates (1)
Allstate Protection
Allstate brand	$	(54)		$	9	$	(11)	$	(152)		$	(94)		$	(58)		$	(45)	$	(152)
Auto
Homeowners			23				(4)			5			(1)				(1)				46				19			45
Other personal lines			(2)				(4)			(9)			10				(1)				10				(6)			9
Commercial lines			21				6			-			-				13				4				27			17
Total			(12)				7			(15)			(143)				(83)				2				(5)			(81)
Esurance brand			1				3			(1)			-				(1)				4				4			3
Auto
Homeowners			-				(2)			1			-				1				(1)				(2)			-
Other personal lines			-				-			-			-				-				-				-			-
Total			1				1			-			-				-				3				2			3
Encompass brand			(1)				1			-			(1)				(9)				-				-			(9)
Auto
Homeowners			-				(1)			-			3				4				8				(1)			12
Other personal lines			-				(2)			-			(1)				2				(3)				(2)			(1)
Total			(1)				(2)			-			1				(3)				5				(3)			2
Total Allstate Protection			(54)				13			(12)			(153)				(104)				(54)				(41)			(158)
Auto
Homeowners			23				(7)			6			2				4				53				16			57
Other personal lines			(2)				(6)			(9)			9				1				7				(8)			8
Commercial lines			21				6			-			-				13				4				27			17
Total			(12)				6			(15)			(142)				(86)				10				(6)			(76)
Discontinued Lines and Coverages			2				2			2			98				3				2				4			5
Total Property-Liability	$	(10)		$	8	$	(13)	$	(44)		$	(83)		$	12		$	(2)	$	(71)
Effect of prior year reserve reestimates on
combined ratio (1)(2)
Allstate Protection			(0.6)				0.2			(0.2)			(1.7)				(1.2)				(0.6)				(0.3)			(0.9)
Auto
Homeowners			0.3				(0.1)			0.1			-				-				0.6				0.1			0.4
Other personal lines			-				(0.1)			(0.1)			0.1				-				0.1				-			-
Commercial lines			0.2				0.1			-			-				0.2				-				0.1			0.1
Total			(0.1)				0.1			(0.2)			(1.6)				(1.0)				0.1				(0.1)			(0.4)
Discontinued Lines and Coverages			-				-			-			1.1				0.1				0.1				-			-
Total Property-Liability			(0.1)				0.1			(0.2)			(0.5)				(0.9)				0.2				(0.1)			(0.4)
Allstate Protection by brand
		(0.1)				0.1			(0.2)			(1.6)				(1.0)				-				(0.1)			(0.4)
Allstate brand
Esurance brand			-				-			-			-				-				-				-			-
Encompass brand			-				-			-			-				-				0.1				-			-
Total			(0.1)				0.1			(0.2)			(1.6)				(1.0)				0.1				(0.1)			(0.4)

1. Favorable reserve reestimates are shown in parentheses.
2. Calculated using the total premiums earned for Allstate Protection for the respective period. Discontinued Lines and Coverages does not have premiums earned.

The Allstate Corporation 2Q20 Supplement

13

The Allstate Corporation

Property-Liability Catastrophe Losses included in Prior Year Reserve Reestimates

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Allstate Protection (1)
Allstate brand	$	(6)		$	(8)		$	(8)	$	(1)		$	(7)		$	(1)		$	(14)	$	(8)
Auto
Homeowners (2)			27				(7)	(4)		8	(4)		(1)				6				42				20			48
Other personal lines			2				(4)			(4)			(1)				(3)				9				(2)			6
Commercial lines			2				1			-			(1)				1				(1)				3			-
Total			25				(18)			(4)			(4)				(3)				49				7			46
Esurance brand			-				-			-			(1)				1				-				-			1
Auto
Homeowners			-				-			-			-				1				-				-			1
Total			-				-			-			(1)				2				-				-			2
Encompass brand			-				(1)			-			-				-				-				(1)			-
Auto
Homeowners			-				(1)			(1)			3				4				4				(1)			8
Other personal lines			-				-			-			(1)				-				-				-			-
Total			-				(2)			(1)			2				4				4				(2)			8
Total Allstate Protection			(6)				(9)			(8)			(2)				(6)				(1)				(15)			(7)
Auto
Homeowners			27				(8)			7			2				11				46				19			57
Other personal lines			2				(4)			(4)			(2)				(3)				9				(2)			6
Commercial lines			2				1			-			(1)				1				(1)				3			-
Total			25				(20)			(5)			(3)				3				53				5			56
Discontinued Lines and Coverages			-				-			-			-				-				-				-			-
Total Property-Liability	$	25		$	(20)		$	(5)	$	(3)		$	3		$	53		$	5	$	56
Effect of catastrophe losses included in prior
year reserve reestimates on combined ratio (1)(3)
Allstate Protection			-				(0.1)			(0.1)			-				(0.1)				-				(0.1)			-
Auto
Homeowners			0.3				(0.1)			0.1			-				0.1				0.5				0.1			0.3
Other personal lines			-				-			(0.1)			-				-				0.1				-			-
Commercial lines			-				-			-			-				-				-				-			-
Total			0.3				(0.2)			(0.1)			-				-				0.6				-			0.3
Allstate Protection by brand
		0.3				(0.2)			(0.1)			-				-				0.6				-			0.3
Allstate brand
Esurance brand			-				-			-			-				-				-				-			-
Encompass brand			-				-			-			-				-				-				-			-
Total			0.3				(0.2)			(0.1)			-				-				0.6				-			0.3

1. Favorable reserve reestimates are shown in parentheses.
2. Includes $8 million and $7 million reduction of reinsurance premiums for the three months ended December 31, 2019 and September 30, 2019, respectively, and $5 million and $15 million of reinstatement reinsurance premiums incurred for the three months ended June 30, 2019 and March 31, 2019, respectively, related to the 2018 Camp Fire.
3. Calculated using the total premiums earned for Allstate Protection for the respective period. Discontinued Lines and Coverages does not have premiums earned or catastrophe losses.
4. Includes $1 million and $12 million for Texas Windstorm Insurance Association assessments related to Hurricane Harvey which occurred in third quarter 2017 for the three months ended March 31, 2020 and December 31, 2019, respectively.

The Allstate Corporation 2Q20 Supplement

14

The Allstate Corporation

Allstate Protection Impact of Net Rate Changes Approved on Premiums Written

			Three months ended					Three months ended				Three months ended
				June 30, 2020 (1)					March 31, 2020					December 31, 2019
	Number of					Location		Number of				Location		Number of				Location
	locations (5)			Total brand (%) (6)		specific (%) (7)		locations		Total brand (%)		specific (%)		locations		Total brand (%)		specific (%)
Allstate brand
Auto (2)(3)	14	0.1		0.4	16	0.4		6.5	26	0.8		2.6
Homeowners (4)	5	0.1		3.4	15	1.3		4.1	12	0.7		4.9
Esurance brand
Auto	1	0.1		6.6	10	2.6		7.2	12	0.9		5.2
Homeowners	-	-		-	-	-		-	-	-		-
Encompass brand
Auto	2	(0.1)		(1.9)	5	-		(0.2)	9	0.7		4.4
Homeowners	6	0.7		6.3	6	1.8		11.9	8	2.9		15.2
			Three months ended					Three months ended				Three months ended
			September 30, 2019					June 30, 2019					March 31, 2019
	Number of					Location		Number of				Location		Number of				Location
	locations			Total brand (%)		specific (%)		locations		Total brand (%)		specific (%)		locations		Total brand (%)		specific (%)
Allstate brand
Auto	24	0.5		3.1	20	0.8		3.4	19	0.6		3.4
Homeowners	12	0.3		3.5	4	0.1		5.1	20	2.1		5.5
Esurance brand
Auto	15	1.1		2.8	6	2.4		5.3	9	0.6		4.1
Homeowners	1	-		(3.0)	2	2.7		19.9	2	2.0		18.2
Encompass brand
Auto	6	0.3		2.4	1	-		3.6	3	0.5		4.5
Homeowners	11	3.5		9.4	8	1.4		6.5	4	1.4		10.8

1. Rate changes include changes approved based on our net cost of reinsurance. These rate changes do not reflect initial rates filed for insurance subsidiaries initially writing business. Based on historical premiums written in 50 states, the District of Columbia and Canadian provinces, rate changes approved for Allstate brand, Esurance brand and Encompass brand for the three month period ending June 30, 2020 are estimated to total $42 million. Rate changes do not include rating plan enhancements, including the introduction of discounts and surcharges that result in no change in the overall rate level in a location.
2. Impacts of Allstate brand auto effective rate changes as a percentage of total brand prior year-end premiums written were 0.2%, 0.4%, 0.9%, 0.4%, 0.9% and 0.6% for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively. Rate changes are included in the effective calculations in the period the rate change is effective for renewal contracts.
3. Allstate brand auto rate changes were 1.8%, 2.6%, 2.7%, 2.2%, 1.7% and 1.4% for the trailing twelve months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively.
4. Impacts of Allstate brand homeowners effective rate changes as a percentage of total brand prior year-end premiums written were 0.7%, 1.2%, 0.2%, 0.2%, 0.8% and 2.3% for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively.
5. Allstate brand operates in 50 states, the District of Columbia, and 5 Canadian provinces. Esurance brand operates in 43 states. Encompass operates in 40 states and the District of Columbia.
6. Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of total brand prior year-end premiums written.
7. Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of its respective total prior year-end premiums written in those same locations.

The Allstate Corporation 2Q20 Supplement

15

The Allstate Corporation

Allstate Brand Profitability Measures

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Net premiums written	$	8,391		$	7,824	$	8,008	$	8,472		$	8,262		$	7,544		$	16,215	$	15,806
Net premiums earned
Auto	$	5,547		$	5,532	$	5,509	$	5,446		$	5,404		$	5,321		$	11,079	$	10,725
Homeowners			1,924				1,907			1,892			1,868				1,832				1,811				3,831			3,643
Other personal lines			457				449			449			447				440				437				906			877
Commercial lines			159				218			237			236				226				183				377			409
Total		$	8,087			$	8,106		$	8,087		$	7,997			$	7,902			$	7,752			$	16,193		$	15,654
Other revenue
Auto	$	48		$	58	$	58	$	57		$	57		$	57		$	106	$	114
Homeowners			10				11			11			12				11				11				21			22
Other personal lines			36				29			31			37				35				28				65			63
Commercial lines			2				1			2			1				2				1				3			3
Other business lines (1)			45				40			42			46				46				38				85			84
Total		$	141			$	139		$	144		$	153			$	151			$	135			$	280		$	286
Incurred losses
Auto	$	2,643		$	3,378	$	3,712	$	3,689		$	3,698		$	3,485		$	6,021	$	7,183
Homeowners			1,626				927			958			1,082				1,508				1,254				2,553			2,762
Other personal lines			291				243			225			277				281				292				534			573
Commercial lines			125				171			185			197				196				139				296			335
Total		$	4,685			$	4,719		$	5,080		$	5,245			$	5,683			$	5,170			$	9,404		$	10,853
Expenses
Auto	$	2,058		$	1,560	$	1,456	$	1,385		$	1,376		$	1,381		$	3,618	$	2,757
Homeowners			426				436			459			437				414				426				862			840
Other personal lines			154				147			159			156				146				143				301			289
Commercial lines			47				43			41			39				39				38				90			77
Other business lines (1)			29				26			12			30				28				27				55			55
Total		$	2,714			$	2,212		$	2,127		$	2,047			$	2,003			$	2,015			$	4,926		$	4,018
Underwriting income (loss)
Auto	$	894		$	652	$	399	$	429		$	387		$	512		$	1,546	$	899
Homeowners			(118)				555			486			361				(79)				142				437			63
Other personal lines			48				88			96			51				48				30				136			78
Commercial lines			(11)				5			13			1				(7)				7				(6)			-
Other business lines			16				14			30			16				18				11				30			29
Total		$	829			$	1,314		$	1,024		$	858			$	367			$	702			$	2,143		$	1,069
Loss ratio			57.9				58.2			62.8			65.6				71.9				66.7				58.1			69.3
Expense ratio (2)			31.8				25.6			24.5			23.7				23.5				24.2				28.7			23.9
Combined ratio			89.7				83.8			87.3			89.3				95.4				90.9				86.8			93.2
Loss ratio			57.9				58.2			62.8			65.6				71.9				66.7				58.1			69.3
Less: effect of catastrophe losses			13.7				2.4			3.4			5.6				13.0				8.3				8.1			10.7
effect of prior year non-catastrophe reserve reestimates			(0.5)				0.3			(0.1)			(1.7)				(1.0)				(0.6)				(0.1)			(0.8)
Underlying loss ratio *			44.7				55.5			59.5			61.7				59.9				59.0				50.1			59.4
Reconciliation of combined ratio to underlying combined ratio
Combined ratio			89.7				83.8			87.3			89.3				95.4				90.9				86.8			93.2
Effect of catastrophe losses			(13.7)				(2.4)			(3.4)			(5.6)				(13.0)				(8.3)				(8.1)			(10.7)
Effect of prior year non-catastrophe reserve reestimates			0.5				(0.3)			0.1			1.7				1.0				0.6				0.1			0.8
Underlying combined ratio *			76.5				81.1			84.0			85.4				83.4				83.2				78.8			83.3
Effect of prior year reserve reestimates on combined ratio
		(0.2)				0.1			(0.2)			(1.8)				(1.0)				-				-			(0.5)
Effect of advertising expenses on combined ratio			2.2				2.0			2.9			2.1				1.9				1.9				2.1			1.9
Effect of Shelter-in-Place Payback expense on combined and
expense ratios			8.2				2.3			-			-				-				-				5.3			-

1. Other business lines primarily represent commissions earned and other costs and expenses for Ivantage.
2. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

16

The Allstate Corporation

Allstate Brand Statistics (1)

							Three months ended									Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,			June 30,			March 31,		June 30,		June 30,
		2020			2020		2019		2019			2019			2019			2020		2019
New issued applications (in thousands) (2)	751		751	694	753		755		740		1,502	1,495
Auto
Homeowners	224		199	196	226		229		197		423	426
Average premium - gross written ($) (3)	594		598	595	589		581		578		596	579
Auto
Homeowners	1,328		1,314	1,304	1,308		1,295		1,267		1,322	1,283
Average premium - net earned ($) (4)	545		543	541	537		535		530		544	532
Auto
Homeowners	1,221		1,213	1,209	1,191		1,174		1,166		1,217	1,170
Annualized average premium ($) (5)	1,084		1,089	1,080	1,071		1,065		1,057		1,083	1,057
Auto
Homeowners	1,225		1,220	1,210	1,198		1,178		1,169		1,219	1,171
Average underlying loss (incurred pure premium) and expense * ($) (6)	895		955	1,003	991		970		953		921	958
Auto
Homeowners	736		754	739	779		732		745		744	737
Renewal ratio (%) (7)	88.1		88.0	88.1	88.6		88.8		88.8		88.1	88.8
Auto
Homeowners	87.3		87.6	88.2	88.4		88.2		88.4		87.5	88.3
Auto property damage (% change year-over-year)
Gross claim frequency (8)	(46.4)		(12.0)	(2.2)	2.0		(0.8)		(1.6)		(29.4)	(1.2)
Paid claim frequency (8)	(37.8)		(3.8)	(4.0)	0.2		(1.5)		(3.6)		(20.6)	(2.5)
Paid claim severity (9)	20.1		7.7	6.0	5.1		8.8		6.1		12.7	7.4
Bodily injury (% change year-over-year)
Gross claim frequency (8)	(49.2)		(11.2)	(3.2)	(0.5)		(2.1)		(1.2)		(30.5)	(1.6)
Homeowners excluding catastrophe losses (% change year-over-year)
Gross claim frequency (8)	(8.7)		(13.1)	(11.2)	(8.8)		(2.8)		(0.2)		(10.8)	(1.5)
Paid claim frequency (8)	(12.4)		(10.7)	(11.6)	(6.4)		(6.7)		1.1		(11.6)	(3.1)
Paid claim severity (9)	9.4		16.1	23.2	13.2		11.7		0.5		12.8	6.2

1. Statistics presented for Allstate brand exclude excess and surplus lines.
2. New issued applications: Item counts of automobiles or homeowners insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate Protection brand. Allstate brand includes automobiles added by existing customers when they exceed the number allowed (currently 10) on a policy.
3. Average premium - gross written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners.
4. Average premium - net earned: Earned premium divided by average policies in force for the period. Earned premium includes the impacts from mid-term premium adjustments and ceded reinsurance, but does not include impacts of premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners.
5. Annualized average premium is calculated by annualizing net earned premium reported in the quarter and year-to-date divided by policies in force at quarter end.
6. Average underlying loss (incurred pure premium) and expense is calculated as the underlying combined ratio multiplied by the annualized average premium.
7. Renewal ratio: Renewal policies issued during the period, based on contract effective dates, divided by the total policies issued 6 months prior for auto or 12 months prior for homeowners.
8. Paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency.
9. Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period. The percent change in paid claim severity is calculated as the amount of increase or decrease in paid claim severity in the current period compared to the same period in the prior year; divided by the prior year paid claims severity.

The Allstate Corporation 2Q20 Supplement

17

The Allstate Corporation

Esurance Brand Profitability Measures and Statistics

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Net premiums written	$	518		$	546	$	489	$	562		$	503		$	559		$	1,064	$	1,062
Net premiums earned	$	491		$	487	$	500	$	498		$	496		$	475		$	978	$	971
Auto
Homeowners			30				30			30			28				27				25				60			52
Other personal lines			2				2			2			2				2				2				4			4
Total		$	523			$	519		$	532		$	528			$	525			$	502			$	1,042		$	1,027
Other revenue	$	23		$	23	$	20	$	23		$	20		$	20		$	46	$	40
Auto
Total		$	23			$	23		$	20		$	23			$	20			$	20			$	46		$	40
Incurred losses	$	272		$	359	$	405	$	404		$	387		$	367		$	631	$	754
Auto
Homeowners			25				13			16			20				31				15				38			46
Other personal lines			1				1			2			-				1				2				2			3
Total		$	298			$	373		$	423		$	424			$	419			$	384			$	671		$	803
Expenses	$	169		$	145	$	160	$	126		$	121		$	129		$	314	$	250
Auto
Homeowners			6				5			6			7				7				6				11			13
Other personal lines			1				-			-			-				1				-				1			1
Total		$	176			$	150		$	166		$	133			$	129			$	135			$	326		$	264
Underwriting income (loss)
Auto	$	73		$	6	$	(45)	$	(9)		$	8		$	(1)		$	79	$	7
Homeowners			(1)				12			8			1				(11)				4				11			(7)
Other personal lines			-				1			-			2				-				-				1			-
Total		$	72			$	19		$	(37)		$	(6)			$	(3)			$	3			$	91		$	-
Loss ratio			57.0				71.8			79.5			80.3				79.8				76.5				64.4			78.2
Expense ratio (1)			29.2				24.5			27.5			20.8				20.8				22.9				26.9			21.8
Combined ratio			86.2				96.3			107.0			101.1				100.6				99.4				91.3			100.0
Loss ratio			57.0				71.8			79.5			80.3				79.8				76.5				64.4			78.2
Less: effect of catastrophe losses			3.4				0.6			0.8			3.0				4.8				1.2				2.0			3.0
effect of prior year non-catastrophe reserve reestimates			0.2				0.1			-			0.2				(0.4)				0.6				0.2			0.1
Underlying loss ratio *			53.4				71.1			78.7			77.1				75.4				74.7				62.2			75.1
Reconciliation of combined ratio to underlying combined ratio			86.2				96.3			107.0			101.1				100.6				99.4				91.3			100.0
Combined ratio
Effect of catastrophe losses			(3.4)				(0.6)			(0.8)			(3.0)				(4.8)				(1.2)				(2.0)			(3.0)
Effect of prior year non-catastrophe reserve reestimates			(0.2)				(0.1)			-			(0.2)				0.4				(0.6)				(0.2)			(0.1)
Effect of amortization of purchased intangibles			(0.2)				-			(0.2)			-				-				(0.2)				(0.1)			(0.1)
Effect of impairment of purchased intangibles			-				-			(9.6)			-				-				-				-			-
Underlying combined ratio *			82.4				95.6			96.4			97.9				96.2				97.4				89.0			96.8
Effect of prior year reserve reestimates on combined ratio			0.2				0.1			-			-				-				0.6				0.2			0.3
Effect of advertising expenses on combined ratio			5.9				8.5			4.7			8.0				7.4				8.2				7.2			7.8
Effect of Shelter-in-Place Payback expense on combined and			11.1				3.3			-			-				-				-				7.2			-
expense ratios
Policies in force (in thousands)			1,514				1,503			1,515			1,543				1,548				1,548				1,514			1,548
Auto
Homeowners			107				106			105			104				101				98				107			101
Other personal lines			46				46			46			48				48				48				46			48
			1,667				1,655			1,666			1,695				1,697				1,694				1,667			1,697
New issued applications (in thousands)			117				130			119			149				145				180				247			325
Auto
Homeowners			6				5			6			9				7				7				11			14
Average premium - gross written ($)			653				632			619			626				611				625				642			619
Auto (6-month policy)
Homeowners (12-month policy)			1,093				1,081			1,047			1,082				1,063				1,016				1,088			1,045
Renewal ratio (%)			83.4
Auto						82.0			81.8			81.9				84.0				83.9				82.7			84.0
Homeowners			84.7				83.9			83.2			84.1				85.5				84.8				84.3			85.2

1. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

18

The Allstate Corporation

Encompass Brand Profitability Measures and Statistics

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Net premiums written	$	263		$	222	$	240	$	278		$	278		$	224		$	485	$	502
Net premiums earned
Auto	$	135		$	135	$	134	$	136		$	135		$	134		$	270	$	269
Homeowners			99				101			100			101				99				99				200			198
Other personal lines			19				20			20			20				20				20				39			40
Total		$	253			$	256		$	254		$	257			$	254			$	253			$	509		$	507
Other revenue
Auto	$	-		$	1	$	-	$	2		$	-		$	1		$	1	$	1
Homeowners			1				-			1			-				1				-				1			1
Total	$	1		$	1	$	1	$	2		$	1		$	1		$	2	$	2
Incurred losses
Auto	$	46		$	90	$	88	$	94		$	87		$	91		$	136	$	178
Homeowners			90				55			52			82				66				72				145			138
Other personal lines			18				12			15			17				14				11				30			25
Total		$	154			$	157		$	155		$	193			$	167			$	174			$	311		$	341
Expenses
Auto	$	57		$	48	$	44	$	43		$	42		$	45		$	105	$	87
Homeowners			31				32			32			32				32				31				63			63
Other personal lines			6				6			7			6				7				6				12			13
Total		$	94			$	86		$	83		$	81			$	81			$	82			$	180		$	163
Underwriting income (loss)	$	32		$	(2)	$	2	$	1		$	6		$	(1)		$	30	$	5
Auto
Homeowners			(21)				14			17			(13)				2				(4)				(7)			(2)
Other personal lines			(5)				2			(2)			(3)				(1)				3				(3)			2
Total		$	6			$	14		$	17		$	(15)			$	7			$	(2)			$	20		$	5
Loss ratio			60.9				61.3			61.0			75.1				65.7				68.8				61.1			67.3
Expense ratio (1)			36.7				33.2			32.3			30.7				31.5				32.0				35.0			31.7
Combined ratio			97.6				94.5			93.3			105.8				97.2				100.8				96.1			99.0
Loss ratio			60.9				61.3			61.0			75.1				65.7				68.8				61.1			67.3
Less: effect of catastrophe losses			23.3				4.7			4.7			18.3				10.2				11.9				13.9			11.0
effect of prior year non-catastrophe reserve reestimates			(0.4)				-			0.4			(0.4)				(2.8)				0.4				(0.1)			(1.2)
Underlying loss ratio *			38.0				56.6			55.9			57.2				58.3				56.5				47.3			57.5
Reconciliation of combined ratio to underlying combined ratio			97.6				94.5			93.3			105.8				97.2				100.8				96.1			99.0
Combined ratio
Effect of catastrophe losses			(23.3)				(4.7)			(4.7)			(18.3)				(10.2)				(11.9)				(13.9)			(11.0)
Effect of prior year non-catastrophe reserve reestimates			0.4				-			(0.4)			0.4				2.8				(0.4)				0.1			1.2
Underlying combined ratio *			74.7				89.8			88.2			87.9				89.8				88.5				82.3			89.2
Effect of prior year reserve reestimates on combined ratio			(0.4)				(0.8)			-			0.4				(1.2)				2.0				(0.5)			0.4
Effect of Shelter-in-Place Payback expense on combined and
expense ratios			6.3				2.0			-			-				-				-				4.1			-
Policies in force (in thousands)
Auto			473				485			493			496				497				499				473			497
Homeowners			225				230			234			235				236				237				225			236
Other personal lines			74				75			76			77				77				78				74			77
			772				790			803			808				810				814				772			810
New issued applications (in thousands)
Auto			14				16			19			21				22				20				30			42
Homeowners			8				8			9			12				12				9				16			21
Average premium - gross written ($)
Auto (12-month policy)			1,166				1,162			1,134			1,137				1,130				1,134				1,164			1,132
Homeowners (12-month policy)			1,901				1,880			1,823			1,807				1,782				1,768				1,891			1,775
Renewal ratio (%)
Auto			76.5				77.5			77.8			78.9				78.1				77.7				76.9			77.9
Homeowners			80.5				81.9			82.1			83.0				82.5				82.1				81.1			82.3

1. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

19

The Allstate Corporation

Auto Profitability Measures by Brand

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Allstate brand auto
Net premiums written	$	5,572		$	5,574	$	5,470	$	5,599		$	5,472		$	5,395		$	11,146	$	10,867
Net premiums earned	$	5,547		$	5,532	$	5,509	$	5,446		$	5,404		$	5,321		$	11,079	$	10,725
Other revenue			48				58			58			57				57				57				106			114
Incurred losses			(2,643)				(3,378)			(3,712)			(3,689)				(3,698)				(3,485)				(6,021)			(7,183)
Expenses			(2,058)				(1,560)			(1,456)			(1,385)				(1,376)				(1,381)				(3,618)			(2,757)
Underwriting income		$	894			$	652		$	399		$	429			$	387			$	512			$	1,546		$	899
Loss ratio			47.7				61.1			67.4			67.7				68.4				65.5				54.3			67.0
Less: effect of catastrophe losses			2.2				0.2			-			2.4				3.3				1.3				1.2			2.3
effect of prior year non-catastrophe reserve reestimates			(0.8)				0.3			-			(2.8)				(1.6)				(1.1)				(0.3)			(1.4)
Underlying loss ratio *			46.3				60.6			67.4			68.1				66.7				65.3				53.4			66.1
Expense ratio (1)			36.2				27.1			25.4			24.4				24.4				24.9				31.7			24.6
Combined ratio			83.9				88.2			92.8			92.1				92.8				90.4				86.0			91.6
Effect of catastrophe losses			(2.2)				(0.2)			-			(2.4)				(3.3)				(1.3)				(1.2)			(2.3)
Effect of prior year non-catastrophe reserve reestimates			0.8				(0.3)			-			2.8				1.6				1.1				0.3			1.4
Underlying combined ratio *			82.5				87.7			92.8			92.5				91.1				90.2				85.1			90.7
Effect of Shelter-in-Place Payback expense on combined and
expense ratios			11.9				3.4			-			-				-				-				7.7			-
Esurance brand auto
Net premiums written	$	482		$	517	$	460	$	525		$	469		$	532		$	999	$	1,001
Net premiums earned	$	491		$	487	$	500	$	498		$	496		$	475		$	978	$	971
Other revenue			23				23			20			23				20				20				46			40
Incurred losses			(272)				(359)			(405)			(404)				(387)				(367)				(631)			(754)
Expenses			(169)				(145)			(160)			(126)				(121)				(129)				(314)			(250)
Underwriting income (loss)	$	73		$	6	$	(45)	$	(9)		$	8		$	(1)		$	79	$	7
Loss ratio			55.4				73.7			81.0			81.1				78.0				77.3				64.5			77.7
Less: effect of catastrophe losses			1.4				0.2			0.4			1.8				2.0				0.6				0.8			1.3
effect of prior year non-catastrophe reserve reestimates			0.2				0.7			(0.2)			0.2				(0.4)				0.9				0.4			0.3
Underlying loss ratio *			53.8				72.8			80.8			79.1				76.4				75.8				63.3			76.1
Expense ratio (1)			29.7				25.1			28.0			20.7				20.4				22.9				27.4			21.6
Combined ratio			85.1				98.8			109.0			101.8				98.4				100.2				91.9			99.3
Effect of catastrophe losses			(1.4)				(0.2)			(0.4)			(1.8)				(2.0)				(0.6)				(0.8)			(1.3)
Effect of prior year non-catastrophe reserve reestimates			(0.2)				(0.7)			0.2			(0.2)				0.4				(0.9)				(0.4)			(0.3)
Effect of amortization of purchased intangibles			(0.2)				-			(0.2)			-				-				(0.2)				(0.1)			(0.1)
Effect of impairment of purchased intangibles			-				-			(10.2)			-				-				-				-			-
Underlying combined ratio *			83.3				97.9			98.4			99.8				96.8				98.5				90.6			97.6
Effect of Shelter-in-Place Payback expense on combined and			11.8				3.5			-			-				-				-				7.7			-
expense ratios
Encompass brand auto
Net premiums written	$	136		$	118	$	127	$	147		$	146		$	120		$	254	$	266
Net premiums earned	$	135		$	135	$	134	$	136		$	135		$	134		$	270	$	269
Other revenue			-				1			-			2				-				1				1			1
Incurred losses			(46)				(90)			(88)			(94)				(87)				(91)				(136)			(178)
Expenses			(57)				(48)			(44)			(43)				(42)				(45)				(105)			(87)
Underwriting income (loss)		$	32			$	(2)		$	2		$	1			$	6			$	(1)			$	30		$	5
Loss ratio			34.1				66.7			65.7			69.1				64.5				67.9				50.4			66.2
Less: effect of catastrophe losses			3.0				-			-			2.9				2.2				2.2				1.5			2.2
effect of prior year non-catastrophe reserve reestimates			(0.8)				1.5			-			(0.7)				(6.6)				-				0.4			(3.4)
Underlying loss ratio *			31.9				65.2			65.7			66.9				68.9				65.7				48.5			67.4
Expense ratio (1)			42.2				34.8			32.8			30.2				31.1				32.8				38.5			31.9
Combined ratio			76.3				101.5			98.5			99.3				95.6				100.7				88.9			98.1
Effect of catastrophe losses			(3.0)				-			-			(2.9)				(2.2)				(2.2)				(1.5)			(2.2)
Effect of prior year non-catastrophe reserve reestimates			0.8				(1.5)			-			0.7				6.6				-				(0.4)			3.4
Underlying combined ratio *			74.1				100.0			98.5			97.1				100.0				98.5				87.0			99.3
Effect of Shelter-in-Place Payback expense on combined and			11.9				3.7			-			-				-				-				7.8			-
expense ratios

1. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

20

The Allstate Corporation

Homeowners Profitability Measures by Brand

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Allstate brand homeowners
Net premiums written	$	2,144		$	1,618	$	1,861	$	2,143		$	2,076		$	1,565		$	3,762	$	3,641
Net premiums earned	$	1,924		$	1,907	$	1,892	$	1,868		$	1,832		$	1,811		$	3,831	$	3,643
Other revenue			10				11			11			12				11				11				21			22
Incurred losses			(1,626)				(927)			(958)			(1,082)				(1,508)				(1,254)				(2,553)			(2,762)
Expenses			(426)				(436)			(459)			(437)				(414)				(426)				(862)			(840)
Underwriting income (loss)	$	(118)		$	555	$	486	$	361		$	(79)		$	142		$	437	$	63
Loss ratio			84.5				48.6			50.6			57.9				82.3				69.3				66.6			75.8
Less: effect of catastrophe losses			46.3				8.9			13.4			15.7				42.6				28.2				27.7			35.5
effect of prior year non-catastrophe reserve reestimates			(0.3)				0.2			(0.2)			-				(0.4)				0.3				(0.1)			(0.1)
Underlying loss ratio *			38.5				39.5			37.4			42.2				40.1				40.8				39.0			40.4
Expense ratio (1)			21.6				22.3			23.7			22.8				22.0				22.9				22.0			22.5
Combined ratio			106.1				70.9			74.3			80.7				104.3				92.2				88.6			98.3
Effect of catastrophe losses			(46.3)				(8.9)			(13.4)			(15.7)				(42.6)				(28.2)				(27.7)			(35.5)
Effect of prior year non-catastrophe reserve reestimates			0.3				(0.2)			0.2			-				0.4				(0.3)				0.1			0.1
Underlying combined ratio *			60.1				61.8			61.1			65.0				62.1				63.7				61.0			62.9
Esurance brand homeowners	$	34		$	27	$	27	$	35		$	32		$	25		$	61	$	57
Net premiums written
Net premiums earned	$	30		$	30	$	30	$	28		$	27		$	25		$	60	$	52
Incurred losses			(25)				(13)			(16)			(20)				(31)				(15)				(38)			(46)
Expenses			(6)				(5)			(6)			(7)				(7)				(6)				(11)			(13)
Underwriting income (loss)	$	(1)		$	12	$	8	$	1		$	(11)		$	4		$	11	$	(7)
Loss ratio			83.3				43.3			53.3			71.4				114.8				60.0				63.4			88.5
Less: effect of catastrophe losses			36.6				6.7			6.7			25.0				55.5				12.0				21.7			34.6
effect of prior year non-catastrophe reserve reestimates			-				(6.7)			3.3			-				-				(4.0)				(3.3)			(1.9)
Underlying loss ratio *			46.7				43.3			43.3			46.4				59.3				52.0				45.0			55.8
Expense ratio (1)			20.0				16.7			20.0			25.0				25.9				24.0				18.3			25.0
Combined ratio			103.3				60.0			73.3			96.4				140.7				84.0				81.7			113.5
Effect of catastrophe losses			(36.6)				(6.7)			(6.7)			(25.0)				(55.5)				(12.0)				(21.7)			(34.6)
Effect of prior year non-catastrophe reserve reestimates			-				6.7			(3.3)			-				-				4.0				3.3			1.9
Underlying combined ratio *			66.7				60.0			63.3			71.4				85.2				76.0				63.3			80.8
Encompass brand homeowners
Net premiums written	$	106		$	87	$	94	$	110		$	111		$	86		$	193	$	197
Net premiums earned	$	99		$	101	$	100	$	101		$	99		$	99		$	200	$	198
Other revenue			1				-			1			-				1				-				1			1
Incurred losses			(90)				(55)			(52)			(82)				(66)				(72)				(145)			(138)
Expenses			(31)				(32)			(32)			(32)				(32)				(31)				(63)			(63)
Underwriting income (loss)	$	(21)		$	14	$	17	$	(13)		$	2		$	(4)		$	(7)	$	(2)
Loss ratio			90.9				54.4			52.0			81.2				66.7				72.7				72.5			69.7
Less: effect of catastrophe losses			52.5				10.9			12.0			40.6				22.2				25.3				31.5			23.7
effect of prior year non-catastrophe reserve reestimates			-				-			1.0			-				-				4.0				-			2.0
Underlying loss ratio *			38.4				43.5			39.0			40.6				44.5				43.4				41.0			44.0
Expense ratio (1)			30.3				31.7			31.0			31.7				31.3				31.3				31.0			31.3
Combined ratio			121.2				86.1			83.0			112.9				98.0				104.0				103.5			101.0
Effect of catastrophe losses			(52.5)				(10.9)			(12.0)			(40.6)				(22.2)				(25.3)				(31.5)			(23.7)
Effect of prior year non-catastrophe reserve reestimates			-				-			(1.0)			-				-				(4.0)				-			(2.0)
Underlying combined ratio *			68.7				75.2			70.0			72.3				75.8				74.7				72.0			75.3

1. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

21

The Allstate Corporation

Other Personal Lines Profitability Measures by Brand (1)

($ in millions, except ratios)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Allstate brand other personal lines
Net premiums written	$	505		$	411	$	434	$	492		$	478		$	399		$	916	$	877
Net premiums earned	$	457		$	449	$	449	$	447		$	440		$	437		$	906	$	877
Other revenue			36				29			31			37				35				28				65			63
Incurred losses			(291)				(243)			(225)			(277)				(281)				(292)				(534)			(573)
Expenses			(154)				(147)			(159)			(156)				(146)				(143)				(301)			(289)
Underwriting income		$	48			$	88		$	96		$	51			$	48			$	30			$	136		$	78
Loss ratio
		63.7				54.1			50.1			62.0				63.9				66.8				58.9			65.3
Less: effect of catastrophe losses			18.8				2.7			4.2			5.1				13.0				14.6				10.8			13.8
effect of prior year non-catastrophe reserve reestimates			(0.9)				-			(1.1)			2.5				0.4				0.2				(0.4)			0.3
Underlying loss ratio *			45.8				51.4			47.0			54.4				50.5				52.0				48.5			51.2
Expense ratio (2)			25.8				26.3			28.5			26.6				25.2				26.3				26.1			25.8
Combined ratio			89.5				80.4			78.6			88.6				89.1				93.1				85.0			91.1
Effect of catastrophe losses			(18.8)				(2.7)			(4.2)			(5.1)				(13.0)				(14.6)				(10.8)			(13.8)
Effect of prior year non-catastrophe reserve reestimates			0.9				-			1.1			(2.5)				(0.4)				(0.2)				0.4			(0.3)
Underlying combined ratio *			71.6				77.7			75.5			81.0				75.7				78.3				74.6			77.0
Esurance brand other personal lines
Net premiums written	$	2		$	2	$	2	$	2		$	2		$	2		$	4	$	4
Net premiums earned	$	2		$	2	$	2	$	2		$	2		$	2		$	4	$	4
Incurred losses			(1)				(1)			(2)			-				(1)				(2)				(2)			(3)
Expenses			(1)				-			-			-				(1)				-				(1)			(1)
Underwriting income		$	-			$	1		$	-		$	2			$	-			$	-			$	1		$	-
Encompass brand other personal lines
Net premiums written	$	21		$	17	$	19	$	21		$	21		$	18		$	38	$	39
Net premiums earned	$	19		$	20	$	20	$	20		$	20		$	20		$	39	$	40
Incurred losses			(18)				(12)			(15)			(17)				(14)				(11)				(30)			(25)
Expenses			(6)				(6)			(7)			(6)				(7)				(6)				(12)			(13)
Underwriting income (loss)		$	(5)			$	2		$	(2)		$	(3)			$	(1)			$	3			$	(3)		$	2
Loss ratio			94.7				60.0			75.0			85.0				70.0				55.0				76.9			62.5
Less: effect of catastrophe losses			15.8				5.0			-			10.0				5.0				10.0				10.2			7.5
effect of prior year non-catastrophe reserve reestimates			-				(10.0)			-			-				10.0				(15.0)				(5.1)			(2.5)
Underlying loss ratio *			78.9				65.0			75.0			75.0				55.0				60.0				71.8			57.5
Expense ratio (2)			31.6				30.0			35.0			30.0				35.0				30.0				30.8			32.5
Combined ratio			126.3				90.0			110.0			115.0				105.0				85.0				107.7			95.0
Effect of catastrophe losses			(15.8)				(5.0)			-			(10.0)				(5.0)				(10.0)				(10.2)			(7.5)
Effect of prior year non-catastrophe reserve reestimates			-				10.0			-			-				(10.0)				15.0				5.1			2.5
Underlying combined ratio *			110.5				95.0			110.0			105.0				90.0				90.0				102.6			90.0

1. Other personal lines include renters, condominium, landlord and other personal lines products in Allstate Protection.
2. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

22

The Allstate Corporation

Commercial Lines Profitability Measures (1)

($ in millions, except ratios)										Three months ended												Six months ended
						March 31,			Dec. 31,			Sept. 30,							March 31,			June 30,			June 30,
			June 30,									June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Net premiums written	$	170		$	221	$	243	$	238		$	236		$	185		$	391	$	421
Net premiums earned	$	159		$	218	$	237	$	236		$	226		$	183		$	377	$	409
Other revenue			2				1			2			1				2				1				3			3
Incurred losses			(125)				(171)			(185)			(197)				(196)				(139)				(296)			(335)
Expenses			(47)				(43)			(41)			(39)				(39)				(38)				(90)			(77)
Underwriting income (loss)		$	(11)			$	5		$	13		$	1			$	(7)			$	7			$	(6)		$	-
Loss ratio			78.6				78.4			78.1			83.5				86.7				76.0				78.5			81.9
Expense ratio (2)			28.3				19.3			16.4			16.1				16.4				20.2				23.1			18.1
Combined ratio			106.9				97.7			94.5			99.6				103.1				96.2				101.6			100.0
Reconciliation of combined ratio to underlying combined ratio			106.9				97.7			94.5			99.6				103.1				96.2				101.6			100.0
Combined ratio
Effect of catastrophe losses			(5.7)				(0.9)			(2.1)			(0.9)				(1.8)				(0.5)				(2.9)			(1.2)
Effect of prior year non-catastrophe reserve reestimates			(11.9)				(2.3)			-			(0.4)				(5.3)				(2.8)				(6.4)			(4.2)
Underlying combined ratio *			89.3				94.5			92.4			98.3				96.0				92.9				92.3			94.6
Effect of prior year reserve reestimates on combined ratio			13.2				2.8			-			-				5.7				2.2				7.2			4.2
Effect of catastrophe losses included in prior year reserve			1.3				0.5			-			(0.4)				0.4				(0.6)				0.8			-
reestimates on combined ratio
Effect of Shelter-in-Place Payback expense on combined and			2.5				-			-			-				-				-				1.1			-
expense ratios

1. Commercial lines are all Allstate brand products and includes our shared economy business.
2. Other revenue is deducted from other costs and expenses in the expense ratio calculation.

The Allstate Corporation 2Q20 Supplement

23

The Allstate Corporation

Discontinued Lines and Coverages Reserves

($ in millions)			Three months ended							Twelve months ended December 31,
			June 30,		March 31,																2015
(net of reinsurance)			2020			2020				2019			2018			2017			2016
Asbestos	$	790		$	810		$	866		$	884		$	912		$	960		$	1,014
Beginning reserves
Incurred claims and claims expense			-			-				28			44			61			67			39
Claims and claims expense paid			(11)			(20)				(84)			(62)			(89)			(115)			(93)
Ending reserves		$	779		$	790			$	810		$	866		$	884		$	912		$	960
Claims and claims expense paid as a percent of				%			%
ending reserves			1.4		2.5			10.4	%		7.2	%		10.1	%		12.6	%		9.7	%
Environmental	$	175		$	179		$	170		$	166		$	179		$	179		$	203
Beginning reserves
Incurred claims and claims expense			-			-				36			20			10			23			1
Claims and claims expense paid			(4)			(4)				(27)			(16)			(23)			(23)			(25)
Ending reserves		$	171		$	175			$	179		$	170		$	166		$	179		$	179
Claims and claims expense paid as a percent of				%			%
ending reserves			2.3		2.3			15.1	%		9.4	%		13.9	%		12.8	%		14.0	%
Other (1)	$	370		$	376		$	355		$	357		$	354		$	377		$	395
Beginning reserves
Incurred claims and claims expense			2			2				41			23			25			15			13
Claims and claims expense paid			(2)			(8)				(20)			(25)			(22)			(38)			(31)
Ending reserves		$	370		$	370			$	376		$	355		$	357		$	354		$	377
Claims and claims expense paid as a percent of				%			%
ending reserves			0.5		2.2			5.3	%		7.0	%		6.2	%		10.7	%		8.2	%
Total (2)	$	1,335		$	1,365		$	1,391		$	1,407		$	1,445		$	1,516		$	1,612
Beginning reserves
Incurred claims and claims expense			2			2				105			87			96			105			53
Claims and claims expense paid			(17)			(32)				(131)			(103)			(134)			(176)			(149)
Ending reserves		$	1,320		$	1,335			$	1,365		$	1,391		$	1,407		$	1,445		$	1,516
Claims and claims expense paid as a percent of
ending reserves			1.3	%		2.4	%			9.6	%		7.4	%		9.5	%		12.2	%		9.8	%

1. Other includes other mass torts, workers' compensation, commercial and other.
2. The 3-year survival ratio for the combined asbestos, environmental and other claims was 11.9, 11.1, 10.1, 9.2, 9.2 and 10.6 for the annualized six months of 2020 and twelve months ended 2019, 2018, 2017, 2016 and 2015, respectively. The 3-year survival ratio is calculated by taking the ending reserves divided by average net payments made during the 3-year period. For the annualized six months calculation, average net payments are calculated using the annualized 2020 net payments plus the preceding two-year periods.

The Allstate Corporation 2Q20 Supplement

24

The Allstate Corporation

Service Businesses Segment Results (1)

($ in millions)										Three months ended												Six months ended
			June 30,			March 31,			Dec. 31,			Sept. 30,				June 30,				March 31,			June 30,			June 30,
Service Businesses			2020				2020			2019			2019				2019				2019				2020			2019
$	467		$	379	$	453	$	364		$	350		$	368		$	846	$	718
Net premiums written
Net premiums earned	$	360		$	354	$	321	$	312		$	305		$	295		$	714	$	600
Other revenue			51				52			46			47				48				47				103			95
Intersegment insurance premiums and service fees			35				38			44			44				33				33				73			66
Net investment income			11				10			12			11				10				9				21			19
Realized capital gains (losses)			19				(24)			11			4				9				8				(5)			17
Claims and claims expense			(85)				(92)			(92)			(93)				(86)				(92)				(177)			(178)
Amortization of deferred policy acquisition costs			(160)				(153)			(143)			(139)				(134)				(127)				(313)			(261)
Operating costs and expenses			(163)				(161)			(181)			(171)				(158)				(151)				(324)			(309)
Restructuring and related charges			(3)				-			-			(1)				1				-				(3)			1
Amortization of purchased intangibles			(26)				(27)			(29)			(31)				(31)				(31)				(53)			(62)
Impairment of purchased intangibles			-				-			-			-				(55)				-				-			(55)
Income tax (expense) benefit			(7)				-			(1)			4				12				3				(7)			15
Net loss applicable to common shareholders		$	32			$	(3)		$	(12)		$	(13)			$	(46)			$	(6)			$	29		$	(52)
Realized capital (gains) losses, after-tax			(15)				19			(8)			(4)				(6)				(7)				4			(13)
Amortization of purchased intangibles, after-tax			21				21			23			25				25				24				42			49
Impairment of purchased intangibles, after-tax			-				-			-			-				43				-				-			43
Adjusted net income		$	38			$	37		$	3		$	8			$	16			$	11			$	75		$	27
Allstate Dealer Services	$	113		$	107	$	123	$	126		$	120		$	99		$	220	$	219
Net premiums written
Total revenue (2)	$	128		$	112	$	121	$	115		$	114		$	107		$	240	$	221
Claims and claims expense			(10)				(11)			(12)			(12)				(12)				(11)				(21)			(23)
Other costs and expenses (3)			(98)				(97)			(95)			(93)				(90)				(88)				(195)			(178)
Income tax expense			(4)				(1)			(3)			(2)				(3)				(1)				(5)			(4)
Net income applicable to common shareholders		$	16			$	3		$	11		$	8			$	9			$	7			$	19		$	16
Realized capital (gains) losses, after-tax			(8)				4			(4)			(2)				(2)				(1)				(4)			(3)
Adjusted net income		$	8			$	7		$	7		$	6			$	7			$	6			$	15		$	13
Arity (4)
Other revenue (5)	$	1		$	-	$	-	$	1		$	1		$	-		$	1	$	1
Intersegment service fees			25				30			35			34				24				24				55			48
Other costs and expenses (3)			(29)				(34)			(39)			(36)				(26)				(27)				(63)			(53)
Income tax benefit			-				1			1			-				-				1				1			1
Net loss applicable to common shareholders		$	(3)			$	(3)		$	(3)		$	(1)			$	(1)			$	(2)			$	(6)		$	(3)
Adjusted net loss		$	(3)			$	(3)		$	(3)		$	(1)			$	(1)			$	(2)			$	(6)		$	(3)
Allstate Identity Protection
Other revenue	$	27		$	28	$	24	$	22		$	23		$	24		$	55	$	47
Intersegment service fees			1				-			-			1				-				-				1			-
Other costs and expenses (3)(6)			(46)				(43)			(48)			(47)				(44)				(38)				(89)			(82)
Income tax benefit			5				3			3			6				5				3				8			8
Net loss applicable to common shareholders		$	(13)			$	(12)		$	(21)		$	(18)			$	(16)			$	(11)			$	(25)		$	(27)
Amortization of purchased intangibles, after-tax			9				9			9			11				10				10				18			20
Adjusted net loss		$	(4)			$	(3)		$	(12)		$	(7)			$	(6)			$	(1)			$	(7)		$	(7)
Allstate Roadside Services	$	44		$	51	$	52	$	57		$	63		$	63		$	95	$	126
Net premiums written
Total revenue (2)	$	53		$	60	$	65	$	68		$	73		$	73		$	113	$	146
Claims and claims expense			(19)				(26)			(31)			(35)				(37)				(38)				(45)			(75)
Other costs and expenses (3)			(32)				(31)			(35)			(39)				(40)				(43)				(63)			(83)
Income tax (expense) benefit			-				(1)			-			1				1				2				(1)			3
Net income (loss) applicable to common shareholders		$	2			$	2		$	(1)		$	(5)			$	(3)			$	(6)			$	4		$	(9)
Adjusted net income (loss)		$	2			$	2		$	(1)		$	(5)			$	(3)			$	(6)			$	4		$	(9)

1. Service Businesses results also include Allstate Protection Plans; results are on the next page.
2. Total revenue may include net premiums earned, intersegment insurance premiums and service fees, other revenue, net investment income and realized capital gains and losses.
3. Other costs and expenses may include amortization of deferred policy acquisition costs, operating costs and expenses, and restructuring and related charges.
4. Arity user connections were 22.5 million and 16.8 million as of June 30, 2020 and June 30, 2019, respectively.
5. Reflects revenue earned from external customers.
6. Includes investments in growing the business and integration into Allstate.

The Allstate Corporation 2Q20 Supplement

25

The Allstate Corporation

Allstate Protection Plans Results

																									As of or for the
($ in millions)								As of or for the three months ended										six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Net premiums written	$	310		$	221	$	278	$	181			$	167		$	206		$	531	$	373
Net premiums earned	$	219		$	206	$	172	$	163			$	153		$	145		$	425	$	298
Other revenue			8				8			6			7				7				8				16			15
Net investment income			5				5			6			5				4				4				10			8
Realized capital gains (losses)			9				(19)			5			2				6				7				(10)			13
Claims and claims expense			(56)				(55)			(49)			(46)				(37)				(43)				(111)			(80)
Amortization of deferred policy acquisition costs			(75)				(70)			(62)			(60)				(56)				(53)				(145)			(109)
Other costs and expenses			(57)				(50)			(56)			(49)				(48)				(42)				(107)			(90)
Amortization of purchased intangibles			(15)				(16)			(18)			(18)				(18)				(18)				(31)			(36)
Impairment of purchased intangibles			-				-			-			-				(55)				-				-			(55)
Income tax (expense) benefit			(8)				(2)			(2)			(1)				9				(2)				(10)			7
Net income (loss) applicable to common shareholders		$	30			$	7		$	2		$	3			$	(35)			$	6			$	37		$	(29)
Realized capital (gains) losses, after-tax			(7)				15			(4)			(2)				(4)				(6)				8			(10)
Amortization of purchased intangibles, after-tax			12				12			14			14				15				14				24			29
Impairment of purchased intangibles, after-tax			-				-			-			-				43				-				-			43
Adjusted net income		$	35			$	34		$	12		$	15			$	19			$	14			$	69		$	33
Protection plans in force (in thousands) (1)			120,301				107,124			99,632			89,783				83,968				77,866				120,301			83,968
New issued protection plans (in thousands)			18,051				12,561			16,515			10,086				9,754				13,500				30,612			23,254

1. Protection plan terms generally range between one and five years with an average term of three years.

The Allstate Corporation 2Q20 Supplement

26

The Allstate Corporation

Allstate Life Segment Results and Other Statistics

																									As of or for the
($ in millions)								As of or for the three months ended										six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Premiums	$	165		$	153	$	166	$	155			$	157		$	154		$	318	$	311
Contract charges			174				180			176			176				176				183				354			359
Other revenue (1)			24				32			34			31				33				27				56			60
Net investment income			123				128			134			128				125				127				251			252
Contract benefits			(238)				(212)			(223)			(202)				(216)				(214)				(450)			(430)
Interest credited to contractholder funds			(71)				(70)			(73)			(73)				(70)				(72)				(141)			(142)
Amortization of deferred policy acquisition costs			(18)				(30)			(29)			(85)				(27)				(26)				(48)			(53)
Operating costs and expenses			(75)				(84)			(95)			(77)				(91)				(91)				(159)			(182)
Restructuring and related charges			(2)				(1)			(1)			-				(1)				-				(3)			(1)
Income tax expense on operations			(10)				(16)			(13)			(9)				(18)				(15)				(26)			(33)
Adjusted net income			72				80			76			44				68				73				152			141
Realized capital gains (losses), after-tax			16				(25)			-			4				-				(4)				(9)			(4)
Valuation changes on embedded derivatives not hedged, after-			(35)				12			-			(9)				-				-				(23)			-
tax
DAC and DSI amortization related to realized capital gains and
losses and valuation changes on embedded derivatives not			11				(3)			(3)			1				(1)				(2)				8			(3)
hedged, after-tax
Net income applicable to common shareholders		$	64			$	64		$	73		$	40			$	67			$	67			$	128		$	134
Premiums and contract charges by product
$	164		$	153	$	165	$	155			$	156		$	154		$	317	$	310
Traditional life insurance premiums
Accident and health insurance premiums			1				-			1			-				1				-				1			1
Interest-sensitive life insurance contract charges			174				180			176			176				176				183				354			359
Total		$	339			$	333		$	342		$	331			$	333			$	337			$	672		$	670
Benefit spread
$	165		$	153	$	166	$	155			$	157		$	154		$	318	$	311
Premiums
Cost of insurance contract charges			126				128			124			123				123				129				254			252
Contract benefits			(238)				(212)			(223)			(202)				(216)				(214)				(450)			(430)
Total benefit spread		$	53			$	69		$	67		$	76			$	64			$	69			$	122		$	133
Investment spread	$	123		$	128	$	134	$	128			$	125		$	127		$	251	$	252
Net investment income
Interest credited to contractholder funds			(114)				(56)			(72)			(85)				(70)				(72)				(170)			(142)
Total investment spread		$	9			$	72		$	62		$	43			$	55			$	55			$	81		$	110
Proprietary life issued policies (2)			17,232				20,169			34,927			31,031				33,105				28,425				37,401			61,530
Policies in force (in thousands) (3)
Life insurance			1,789				1,797			1,816			1,818				1,822				1,823				1,789			1,822
Allstate agencies
Closed channels			101				103			105			106				109				111				101			109
Accident and health insurance			2				2			2			2				2				2				2			2
Total			1,892				1,902			1,923			1,926				1,933				1,936				1,892			1,933

1. Includes gross dealer concessions received in connection with Allstate exclusive agencies and exclusive financial specialist's sales of non-proprietary products, including mutual funds, fixed and variable annuities, disability insurance and long-term care insurance.
2. Policies issued during the period.
3. Reflect the number of contracts in force.

The Allstate Corporation 2Q20 Supplement

27

The Allstate Corporation

Allstate Life Return on Equity

($ in millions)										Twelve months ended
			June 30,			March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,
Return on equity			2020				2020			2019			2019				2019				2019
Numerator:
Net income applicable to common shareholders (1)(2)	$	241		$	244		$	247		$	237			$	252		$	260
Denominator:
Beginning equity	$	2,744		$	2,657		$	2,474		$	2,528			$	2,587		$	2,542
Ending equity			3,037				2,842			2,944			2,863				2,744				2,657
Average equity (3)	$	2,891		$	2,750		$	2,709		$	2,696			$	2,666		$	2,600
Return on equity			8.3	%			8.9	%		9.1	%		8.8	%			9.5	%			10.0	%
Adjusted net income return on adjusted equity
Numerator:
Adjusted net income (1)	$	272		$	268		$	261		$	254			$	285		$	297
Denominator:
Beginning equity	$	2,744		$	2,657		$	2,474		$	2,528			$	2,587		$	2,542
Less: Unrealized net capital gains and losses			271				168			52			75				89				142
Goodwill			175				175			175			175				175				175
Adjusted beginning equity		$	2,298			$	2,314		$	2,247		$	2,278			$	2,323			$	2,225
Ending equity	$	3,037		$	2,842		$	2,944		$	2,863			$	2,744		$	2,657
Less: Unrealized net capital gains and losses			433				183			328			350				271				168
Goodwill			175				175			175			175				175				175
Adjusted ending equity	$	2,429		$	2,484		$	2,441		$	2,338			$	2,298		$	2,314
Average adjusted equity (3)	$	2,364		$	2,399		$	2,344		$	2,308			$	2,311		$	2,270
Adjusted net income return on adjusted equity *			11.5	%			11.2	%		11.1	%		11.0	%			12.3	%			13.1	%

1. Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period.
2. Includes a $16 million Tax Legislation expense for the periods ended June 30, 2019 and March 31, 2019.
3. Average equity and average adjusted equity are determined using a two-point average, with the beginning and ending equity and adjusted equity, respectively, for the twelve-month period as data points.

The Allstate Corporation 2Q20 Supplement

28

The Allstate Corporation

Allstate Benefits Segment Results and Other Statistics

																									As of or for the
($ in millions)								As of or for the three months ended										six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,			March 31,		June 30,		June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Premiums	$	237		$	253	$	254	$	262			$	256		$	259		$	490	$	515
Contract charges			26				29			28			29				28				29				55			57
Net investment income			20				20			22			21				21				19				40			40
Contract benefits			(123)				(141)			(152)			(161)				(143)				(145)				(264)			(288)
Interest credited to contractholder funds			(9)				(9)			(8)			(9)				(8)				(9)				(18)			(17)
Amortization of deferred policy acquisition costs			(35)				(45)			(50)			(33)				(35)				(43)				(80)			(78)
Operating costs and expenses			(110) (5)			(75)			(74)			(69)				(71)				(71)				(185)			(142)
Restructuring and related charges			(1)				-			-			-				-				-				(1)			-
Income tax expense on operations			-				(8)			(4)			(9)				(11)				(8)				(8)			(19)
Adjusted net income			5				24			16			31				37				31				29			68
Realized capital gains (losses), after-tax			7				(10)			2			2				2				3				(3)			5
Net income applicable to common shareholders		$	12			$	14		$	18		$	33			$	39			$	34			$	26		$	73
Benefit ratio (1)
		46.8				50.0			53.9			55.3				50.4				50.3				48.4			50.3
Operating expense ratio (2)			41.8				26.6			26.2			23.7				25.0				24.7				33.9			24.8
Premiums and contract charges by product
Life	$	38		$	38	$	40	$	41			$	38		$	38		$	76	$	76
Accident			69				73			72			76				74				76				142			150
Critical illness			115				122			116			121				120				122				237			242
Short-term disability			17				20			27			27				27				26				37			53
Other health			24				29			27			26				25				26				53			51
Total		$	263			$	282		$	282		$	291			$	284			$	288			$	545		$	572
New annualized premium sales by product (3)
$	4		$	6	$	19	$	9			$	9		$	8		$	10	$	17
Life
Accident			13				17			43			20				20				21				30			41
Critical illness			17				21			61			23				22				24				38			46
Short-term disability			3				5			11			7				9				8				8			17
Other health			9				8			24			10				13				11				17			24
Total		$	46			$	57		$	158		$	69			$	73			$	72			$	103		$	145
Annualized premium in force (4)
$	1,257		$	1,233	$	1,195	$	1,248			$	1,249		$	1,251		$	1,257	$	1,249

1. Benefit ratio is contract benefits divided by premiums and contract charges.
2. Operating expense ratio is operating costs and expenses divided by premiums and contract charges.
3. New annualized premium sales reflects annualized premiums at initial customer enrollment (including new accounts and new employees or policies of existing accounts). A significant portion of Allstate Benefits business is seasonally written in the fourth quarter during many clients' annual employee benefits enrollment.
4. Premium amount paid annually for all active policies, which have not been cancelled.
5. Includes $41 million, pre-tax,write-off of capitalized software costs associated with a billing system.

The Allstate Corporation 2Q20 Supplement

29

The Allstate Corporation

Allstate Benefits Return on Equity

($ in millions)										Twelve months ended
			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
Return on equity			2020				2020			2019			2019				2019				2019
Numerator:
Net income applicable to common shareholders (1)	$	77		$	104		$	124		$	126			$	128		$	125
Denominator:
Beginning equity	$	969		$	906		$	842		$	883			$	848		$	824
Ending equity			1,004				923			949			1,010				969				906
Average equity (2)	$	987		$	915		$	896		$	947			$	909		$	865
Return on equity			7.8	%			11.4	%		13.8	%		13.3	%			14.1	%			14.5	%
Adjusted net income return on adjusted equity
Numerator:
Adjusted net income (1)	$	76		$	108		$	115		$	125			$	127		$	126
Denominator:
Beginning equity	$	969		$	906		$	842		$	883			$	848		$	824
Less: Unrealized net capital gains and losses			44				21			(10)			(4)				(4)				8
Goodwill			96				96			96			96				96				96
Adjusted beginning equity		$	829			$	789		$	756		$	791			$	756			$	720
Ending equity	$	1,004		$	923		$	949		$	1,010			$	969		$	906
Less: Unrealized net capital gains and losses			77				14			53			52				44				21
Goodwill			96				96			96			96				96				96
Adjusted ending equity	$	831		$	813		$	800		$	862			$	829		$	789
Average adjusted equity (2)	$	830		$	801		$	778		$	827			$	793		$	755
Adjusted net income return on adjusted equity *			9.2	%			13.5	%		14.8	%		15.1	%			16.0	%			16.7	%

1. Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period.
2. Average equity and average adjusted equity are determined using a two-point average, with the beginning and ending equity and adjusted equity, respectively, for the twelve-month period as data points.

The Allstate Corporation 2Q20 Supplement

30

The Allstate Corporation

Allstate Annuities Segment Results and Other Statistics

																									As of or for the
($ in millions)								As of or for the three months ended										six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,		June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Contract charges	$	2		$	2	$	3	$	3			$	4	$	3		$	4	$	7
Net investment income (1)			66				47			180			251				296				190				113			486
Periodic settlements and accruals on non-hedge derivative instruments			-				-			-			(1)				1				-				-			1
Contract benefits			(136)				(148)			(143)			(150)				(152)				(138)				(284)			(290)
Interest credited to contractholder funds			(69)				(70)			(73)			(73)				(75)				(78)				(139)			(153)
Amortization of deferred policy acquisition costs			(1)				(2)			(2)			(2)				(1)				(2)				(3)			(3)
Operating costs and expenses			(7)				(6)			(7)			(7)				(8)				(7)				(13)			(15)
Restructuring and related charges			-				-			(1)			-				-				-				-			-
Income tax (expense) benefit on operations			34				38			10			(5)				(13)				7				72			(6)
Adjusted net income (loss)			(111)				(139)			(33)			16				52				(25)				(250)			27
Realized capital gains (losses), after-tax			194				(213)			97			16				37				124				(19)			161
Valuation changes on embedded derivatives not hedged, after-tax			(6)				2			-			(1)				(2)				(3)				(4)			(5)
Gain on disposition of operations, after-tax			1				1			2			-				1				1				2			2
Net income (loss) applicable to common shareholders		$	78			$	(349)		$	66		$	31			$	88			$	97			$	(271)		$	185
Benefit spread
Cost of insurance contract charges	$	1		$	2	$	3	$	2			$	2	$	2		$	3	$	4
Contract benefits excluding the implied interest on immediate annuities
with life contingencies			(21)				(30)			(24)			(30)				(33)				(17)				(51)			(50)
Total benefit spread	$	(20)		$	(28)	$	(21)	$	(28)			$	(31)	$	(15)		$	(48)	$	(46)
Investment spread
Net investment income	$	66		$	47	$	180	$	251			$	296	$	190		$	113	$	486
Implied interest on immediate annuities with life contingencies			(115)				(118)			(119)			(120)				(119)				(121)				(233)			(240)
Interest credited to contractholder funds excluding valuation changes on
embedded derivatives not hedged			(77)				(67)			(73)			(75)				(78)				(81)				(144)			(159)
Total investment spread	$	(126)		$	(138)	$	(12)	$	56			$	99	$	(12)		$	(264)	$	87

1. Performance-basednet investment income, a component of net

investment income

$

(101)

$

(122)

$

(5)

$

68

$

106

$

1

$

(223)

$

107

The Allstate Corporation 2Q20 Supplement

31

The Allstate Corporation

Allstate Annuities Return on Equity

($ in millions)										Twelve months ended
		June 30,			March 31,			Dec. 31,		Sept. 30,			June 30,			March 31,
Return on equity			2020				2020			2019			2019				2019				2019
Numerator:
Net income (loss) applicable to common shareholders (1)(2)	$	(174)		$	(164)		$	282		$	94			$	194		$	156
Denominator:
Beginning equity	$	5,437		$	5,278		$	4,949		$	5,119			$	5,029		$	5,009
Ending equity			5,496				4,926			5,625			5,552				5,437				5,278
Average equity (3)	$	5,467		$	5,102		$	5,287		$	5,336			$	5,233		$	5,144
Return on equity			(3.2) %			(3.2) %		5.3	%		1.8	%			3.7	%			3.0	%
Adjusted net income return on adjusted equity
Numerator:
Adjusted net income (loss) (1)	$	(267)		$	(104)		$	10		$	75			$	79		$	71
Denominator:
Beginning equity	$	5,437		$	5,278		$	4,949		$	5,119			$	5,029		$	5,009
Less: Unrealized net capital gains and losses			502				428			193			241				272				279
Adjusted beginning equity		$	4,935			$	4,850		$	4,756		$	4,878			$	4,757			$	4,730
Ending equity	$	5,496		$	4,926		$	5,625		$	5,552			$	5,437		$	5,278
Less: Unrealized net capital gains and losses			661				277			604			585				502				428
Adjusted ending equity	$	4,835		$	4,649		$	5,021		$	4,967			$	4,935		$	4,850
Average adjusted equity (3)	$	4,885		$	4,750		$	4,889		$	4,923			$	4,846		$	4,790
Adjusted net income (loss) return on adjusted equity *			(5.5) %			(2.2) %		0.2	%		1.5	%			1.6	%			1.5	%
Adjusted net income (loss) return on adjusted equity by product:			12.2	%			15.1	%		14.5	%		14.2	%			13.2	%			11.7	%
Deferred annuities
Immediate annuities			(7.1) %			(3.7) %		(1.1) %		0.3	%			0.5	%			0.4	%

1. Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period.
2. Includes a $69 million Tax Legislation benefit for the periods ended June 30, 2019 and March 31, 2019.
3. Average equity and average adjusted equity are determined using a two-point average, with the beginning and ending equity and adjusted equity, respectively, for the twelve-month period as data points.

The Allstate Corporation 2Q20 Supplement

32

The Allstate Corporation

Corporate and Other Segment Results

($ in millions)										Three months ended												Six months ended
			June 30,		March 31,			Dec. 31,			Sept. 30,				June 30,			March 31,			June 30,			June 30,
			2020				2020			2019			2019				2019				2019				2020			2019
Net investment income	$	11		$	14	$	18	$	21		$	19		$	12		$	25	$	31
Operating costs and expenses			(25)				(25)			(27)			(19)				(24)				(21)				(50)			(45)
Interest expense			(79)				(81)			(81)			(80)				(82)				(83)				(160)			(165)
Income tax benefit on operations			20				21			20			19				19				20				41			39
Preferred stock dividends			(26)				(36)			(66)			(42)				(30)				(31)				(62)			(61)
Adjusted net loss			(99)				(107)			(136)			(101)				(98)				(103)				(206)			(201)
Realized capital gains (losses), after-tax			23				(17)			9			2				7				1				6			8
Pension and other postretirement remeasurement gains			(58)				(251)			199			(179)				(99)				(11)				(309)			(110)
(losses), after-tax
Net income (loss) applicable to common shareholders		$	(134)			$	(375)		$	72		$	(278)			$	(190)			$	(113)			$	(509)		$	(303)

The Allstate Corporation 2Q20 Supplement

33

The Allstate Corporation

Investment Position

			June 30,			March 31,			Dec. 31,				Sept. 30,					June 30,			March 31,
($ in millions)			2020				2020			2019				2019					2019				2019
Consolidated Investments	$	64,448		$	59,857		$	59,044	$	59,259				$	58,484			$	58,202
Fixed income securities, at fair value
Equity securities (1)			4,212				3,701			8,162				8,206					7,906				5,802
Mortgage loans, net			4,774				4,759			4,817				4,694					4,687				4,681
Limited partnership interests (2)			6,941				7,087			8,078				7,990					7,818				7,493
Short-term, at fair value			5,344				5,671			4,256				5,254					3,740				4,157
Other investments, net			3,918				3,767			4,005				3,904					3,856				3,786
Total		$	89,637			$	84,842		$	88,362			$	89,307				$	86,491			$	84,121
Fixed income securities, at amortized cost, net (3)
$	60,534	%	$	58,945		$	56,293	$	56,263				$	56,008			$	56,831
Ratio of fair value to amortized cost			106.5			101.5	%		104.9	%		105.3	%				104.4	%			102.4	%
Short-term, at amortized cost	$	5,343		$	5,671		$	4,256	$	5,254				$	3,740			$	4,157
											June 30, 2020 - By Segment
			Property-				Service			Allstate				Allstate					Allstate			Corporate			Total
			Liability			Businesses			Life				Benefits					Annuities			and Other
Fixed income securities, at fair value	$	37,866		$	1,549		$	8,336	$	1,383				$	14,078			$	1,236	$	64,448
Equity securities			2,093				132			172				73					1,402				340			4,212
Mortgage loans, net			604				-			1,797				201					2,172				-			4,774
Limited partnership interests			4,092				-			-				-					2,848				1			6,941
Short-term, at fair value			1,868				89			441				73					763				2,110			5,344
Other investments, net			1,648				-			1,326				299					643				2			3,918
Total		$	48,171			$	1,770		$	12,072			$	2,029				$	21,906			$	3,689		$	89,637
Fixed income securities, at amortized cost, net	$	36,189		$	1,460		$	7,517	$	1,282				$	12,907			$	1,179	$	60,534
Ratio of fair value to amortized cost			104.6	%			106.1	%		110.9	%		107.9	%				109.1	%			104.8	%		106.5 %
Short-term, at amortized cost	$	1,867		$	89		$	441	$	73				$	763			$	2,110	$	5,343
Fixed income securities portfolio duration (in years) (4)			5.08				4.89			6.77				5.21					4.94				3.21			5.23

1. As of June 30, 2020, equity securities include $1.36 billion of investments in exchange traded and mutual funds whose underlying investments are fixed income securities.
2. As of June 30, 2020, we have commitments to invest additional amounts in limited partnership interests totaling $2.73 billion.
3. Due to the adoption of the measurement of credit losses on financial instruments accounting standard on January 1, 2020, credit losses for fixed income securities are recorded as an allowance.
4. Duration measures the price sensitivity of assets and liabilities to changes in interest rates.

The Allstate Corporation 2Q20 Supplement

34

The Allstate Corporation

Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax)

($ in millions)										Three months ended												Six months ended
		June 30,			March 31,		Dec. 31,		Sept. 30,			June 30,			March 31,			June 30,		June 30,
Net investment income			2020				2020			2019			2019				2019				2019				2020			2019
$	531		$	525		$	548		$	546			$	543			$	538		$	1,056		$	1,081
Fixed income securities
Equity securities			31				6			51			57				68				30				37			98
Mortgage loans			51				60			59			54				54				53				111			107
Limited partnership interests ("LP") (1)			(220)				(192)			11			197				254				9				(412)			263
Short-term			2				17			22			28				26				26				19			52
Other			62				63			66			66				67				63				125			130
Investment income, before expense			457				479			757			948				1,012				719				936			1,731
Less: Investment expense			(48)				(58)			(68)			(68)				(70)				(71)				(106)			(141)
Net investment income		$	409			$	421		$	689		$	880			$	942			$	648			$	830		$	1,590
Interest-bearing investments (2)	$	624		$	646		$	674		$	676			$	672			$	664		$	1,270		$	1,336
Equity securities			31				6			51			57				68				30				37			98
LP and other alternative investments (3)			(198)				(173)			32			215				272				25				(371)			297
Investment income, before expense		$	457			$	479		$	757		$	948			$	1,012			$	719			$	936		$	1,731
Pre-tax yields (4)			3.6	%			3.6	%		3.9	%		3.9	%			3.8	%			3.8	%			3.6	%		3.8		%
Fixed income securities
Equity securities			3.3				0.5			3.0			3.4				4.7				2.6				1.6			3.7
Mortgage loans			4.3				4.9			5.0			4.6				4.6				4.6				4.6			4.6
Limited partnership interests			(12.5)				(10.1)			0.5			10.0				13.3				0.5				(11.2)			6.9
Total portfolio			2.1				2.2			3.5			4.4				4.8				3.4				2.1			4.1
Interest-bearing investments			3.4				3.7			3.9			4.0				4.0				3.9				3.6			3.9
Realized capital gains (losses), pre-tax by transaction type
Sales (5)	$	179		$	388		$	216		$	147			$	117			$	95		$	567		$	212
Credit losses (6)			(10)				(79)			(4)			(14)				(15)				(14)				(89)			(29)
Valuation of equity investments			517				(859)			521			24				200				627				(342)			827
Valuation and settlements of derivative instruments			18				88			(31)			40				22				(46)				106			(24)
Total		$	704			$	(462)		$	702		$	197			$	324			$	662			$	242		$	986
Total return on investment portfolio (7)			0.5	%			0.5	%		0.8	%		1.0	%			1.1	%			0.8	%			1.0	%		1.9		%
Net investment income
Valuation-interest bearing			3.9				(1.9)			(0.1)			0.8				1.5				1.7				2.0			3.2
Valuation-equity investments			0.6				(1.0)			0.6			0.1				0.2				0.8				(0.4)			1.0
Total			5.0	%			(2.4)	%		1.3	%		1.9	%			2.8	%			3.3	%			2.6	%		6.1		%
Average investment balances (in billions) (8)	$	84.6		$	83.9		$	84.5		$	83.9			$	82.2			$	81.2		$	84.4		$	81.7
Investment expense
Investee level expenses (5)	$	(14)		$	(13)		$	(22)		$	(19)			$	(20)			$	(20)		$	(27)		$	(40)
Securities lending expense			-				(6)			(8)			(10)				(11)				(11)				(6)			(22)
Other expenses			(34)				(39)			(38)			(39)				(39)				(40)				(73)			(79)
Total investment expense	$	(48)		$	(58)		$	(68)		$	(68)			$	(70)			$	(71)		$	(106)		$	(141)

1. Income from equity method of accounting LP is generally recognized on a three-month delay due to the availability of the related financial statements from investees.
2. Comprise fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives.
3. Comprise limited partnership interests and other alternative investments, including real estate investments classified as other investments.
4. Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the ending investment balances of the current and prior quarter. Year-to-datepre-tax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre- tax yield calculation, income for directly held real estate and other consolidated investments is net of investee level expenses (asset level operating expenses reported in investment expense). Beginning January 1, 2020, depreciation previously included in investee level expenses is reported as realized capital gains or losses. Fixed income securities investment balances exclude unrealized capital gains and losses. Equity securities investment balances use cost in the calculation.
5. Beginning January 1, 2020, depreciation previously included in investee level expenses is reported as realized capital gains or losses.
6. Due to the adoption of the measurement of credit losses on financial instruments accounting standard on January 1, 2020, realized capital losses previously reported as other-than-temporary impairment write-downs are presented as credit losses.
7. Total return on investment portfolio is calculated from GAAP results, including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans, bank loans and agent loans divided by the average fair value balances.
8. Average investment balances for the quarter are calculated as the average of the current and prior quarter investment balances. For purposes of the average investment balances calculation, unrealized capital gains and losses on fixed income securities are excluded and equity securities investment balances are at cost.

The Allstate Corporation 2Q20 Supplement

35

The Allstate Corporation

Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) by Segment

($ in millions)								Three months ended June 30, 2020
		Property-			Service			Allstate			Allstate			Allstate		Corporate and
Net Investment Income		Liability			Businesses			Life			Benefits			Annuities			Other			Total
$	275		$	10	$	87	$	13	$	138		$	8		$	531
Fixed income securities
Equity securities		16			1			1			1			9			3			31
Mortgage loans		6			-			20			2			23			-			51
Limited partnership interests ("LP")		(117)			-			-			-			(103)			-			(220)
Short-term		2			-			-			-			-			-			2
Other		25			-			19			5			12			1			62
Investment income, before expense		207			11			127			21			79			12			457
Less: Investment expense		(29)			-			(4)			(1)			(13)			(1)			(48)
Net investment income	$	178		$	11		$	123		$	20		$	66		$	11		$	409
Net investment income, after-tax	$	153		$	9	$	103	$	15	$	51		$	9		$	340
Interest-bearing investments (1)	$	294		$	10	$	126	$	20	$	165		$	9		$	624
Equity securities		16			1			1			1			9			3			31
LP and other alternative investments (2)		(103)			-			-			-			(95)			-			(198)
Investment income, before expense	$	207		$	11		$	127		$	21		$	79		$	12		$	457
Pre-Tax Yields (3)
	3.1	%		2.8	%		4.6	%		4.1	%		4.3	%		2.7	%		3.6	%
Fixed income securities
Equity securities		3.3			4.3			3.5			3.2			3.1			3.3			3.3
Mortgage loans		3.9			-			4.5			4.3			4.3			-			4.3
Limited partnership interests		(11.2)			-			-			-			(14.4)			-			(12.5)
Total portfolio		1.7			2.8			4.5			4.3			1.4			1.4			2.1
Interest-bearing investments		3.0			2.7			4.5			4.3			4.1			1.2			3.4
Realized capital gains (losses), pre-tax by transaction
type
Sales (4)	$	150		$	9	$	4	$	-	$	15		$	1		$	179
Credit losses (5)		-			-			(1)			1			(10)			-			(10)
Valuation of equity investments		218			10			16			10			236			27			517
Valuation and settlements of derivative instruments		14			-			-			-			4			-			18
Total	$	382		$	19		$	19		$	11		$	245		$	28		$	704

1. Comprised of fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives.
2. Comprised of limited partnership interests and other alternative investments, including real estate investments classified as other investments.
3. Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the current and prior quarter investment balances. For the purposes of the pre-tax yield calculation, income for directly held real estate and other consolidated investments is net of investee level expenses (asset level operating expenses reported in investment expense). Beginning January 1, 2020, depreciation previously included in investee level expenses is reported as realized capital gains or losses. Fixed income securities investment balances exclude unrealized capital gains and losses. Equity securities investment balances use cost in the calculation.
4. Beginning January 1, 2020, depreciation previously included in investee level expenses is reported as realized capital gains or losses.
5. Due to the adoption of the measurement of credit losses on financial instruments accounting standard on January 1, 2020, realized capital losses previously reported as other-than-temporary impairment write-downs are presented as credit losses.

The Allstate Corporation 2Q20 Supplement

36

The Allstate Corporation

Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) by Segment

($ in millions)								Six months ended June 30, 2020
		Property-			Service			Allstate			Allstate			Allstate		Corporate and
Net Investment Income		Liability			Businesses			Life			Benefits			Annuities			Other			Total
$	542		$	18		$	173	$	26	$	279		$	18		$	1,056
Fixed income securities
Equity securities		22			3			2			1			4			5			37
Mortgage loans		12			-			44			5			50			-			111
Limited partnership interests ("LP")		(194)			-			-			-			(218)			-			(412)
Short-term		11			-			2			-			4			2			19
Other		50			-			39			9			24			3			125
Investment income, before expense		443			21			260			41			143			28			936
Less: Investment expense		(63)			-			(9)			(1)			(30)			(3)			(106)
Net investment income	$	380		$	21		$	251		$	40		$	113		$	25		$	830
Net investment income, after-tax
$	324		$	17		$	209	$	31	$	89		$	20		$	690
Interest-bearing investments (1)	$	589		$	18		$	258	$	40	$	342		$	23		$	1,270
Equity securities		22			3			2			1			4			5			37
LP and other alternative investments (2)		(168)			-			-			-			(203)			-			(371)
Investment income, before expense	$	443		$	21		$	260		$	41		$	143		$	28		$	936
Pre-Tax Yields (3)
	3.2	%		2.7	%		4.6	%		4.1	%		4.3	%		3.1	%		3.6	%
Fixed income securities
Equity securities		1.6			3.3			2.7			2.1			0.7			2.7			1.6
Mortgage loans		4.0			-			4.8			4.7			4.6			-			4.6
Limited partnership interests		(8.9)			-			-			-			(14.5)			-			(11.2)
Total portfolio		1.8			2.7			4.6			4.3			1.3			1.8			2.1
Interest-bearing investments		3.1			2.6			4.6			4.4			4.2			1.7			3.6
Realized capital gains (losses), pre-tax by transaction
type
Sales (4)	$	516		$	23		$	-	$	-	$	19		$	9		$	567
Credit losses (5)		(35)			-			(17)			(1)			(36)			-			(89)
Valuation of equity investments		(294)			(28)			5			(2)			(21)			(2)			(342)
Valuation and settlements of derivative instruments		92			-			-			-			14			-			106
Total	$	279		$	(5)		$	(12)		$	(3)		$	(24)		$	7		$	242

1. Comprised of fixed income securities, mortgage loans, short-term investments, and other investments, including bank and agent loans and derivatives.
2. Comprised of limited partnership interests and other alternative investments, including real estate investments classified as other investments.
3. Year-to-datepre-tax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate and other consolidated investments is net of investee level expenses (asset level operating expenses reported in investment expense). Beginning January 1, 2020, depreciation previously included in investee level expenses is reported as realized capital gains or losses. Fixed income securities investment balances exclude unrealized capital gains and losses. Equity securities investment balances use cost in the calculation.
4. Beginning January 1, 2020, depreciation previously included in investee level expenses is reported as realized capital gains or losses.
5. Due to the adoption of the measurement of credit losses on financial instruments accounting standard on January 1, 2020, realized capital losses previously reported as other-than-temporary impairment write-downs are presented as credit losses.

The Allstate Corporation 2Q20 Supplement

37

The Allstate Corporation

Investment Position and Results by Strategy and Segment

																													As of or for the three
																														months ended
($ in millions)										As of or for the three months ended June 30, 2020												June 30, 2019
		Property-				Service				Allstate					Allstate			Allstate			Corporate and
		Liability				Businesses				Life					Benefits			Annuities				Other				Total				Total
Market-based(1)
Investment position	$	41,121			$	1,639			$	11,899	$	1,956	$	17,287			$	3,346	$	77,248			$	69,694
Interest-bearing investments
Equity securities (2)		1,850				131				173					73			1,318				341				3,886				7,678
LP and other alternative investments (3)		180				-				-					-			120				-				300				873
Total	$	43,151			$	1,770			$	12,072	$	2,029	$	18,725			$	3,687	$	81,434			$	78,245
Investment income
$	292			$	10			$	126	$	20	$	165			$	9	$	622			$	668
Interest-bearing investments
Equity securities		15				1				1					1			10				3				31				62
LP and other alternative investments		2				-				-					-			-				-				2				3
Investment income, before expense		309				11				127					21			175				12				655				733
Investee level expenses (4)		(1)				-				-					-			-				-				(1)				(2)
Income for yield calculation	$	308			$	11			$	127	$	21	$	175			$	12	$	654			$	731
Market-basedpre-tax yield
	3.0	%		2.8	%		4.5	%			4.3	%		4.1	%		1.4	%		3.4	%		3.9	%
Realized capital gains (losses), pre-tax by
transaction type	$	155			$	9			$	4	$	-	$	18			$	1	$	187			$	86
Sales
Credit losses (5)		2				-				(1)					1			(7)				-				(5)				(13)
Valuation of equity investments		212				10				16					10			210				27				485				198
Valuation and settlements of derivative		17				-				-					-			6				-				23				16
Total	$	386			$	19			$	19	$	11	$	227			$	28	$	690			$	287
Performance-based(6)
Investment position	$	121			$	-			$	-	$	-	$	29			$	-	$	150			$	139
Interest-bearing investments
Equity securities		242				-				-					-			84				-				326				228
LP and other alternative investments		4,657				-				-					-			3,068				2				7,727				7,879
Total	$	5,020			$	-			$	-	$	-	$	3,181			$	2	$	8,203			$	8,246
Investment income
$	2			$	-			$	-	$	-	$	-			$	-	$	2			$	4
Interest-bearing investments
Equity securities		1				-				-					-			(1)				-				-				6
LP and other alternative investments		(105)				-				-					-			(95)				-				(200)				269
Investment income, before expense		(102)				-				-					-			(96)				-				(198)				279
Investee level expenses		(8)				-				-					-			(5)				-				(13)				(18)
Income for yield calculation	$	(110)			$	-			$	-		$	-		$	(101)			$	-		$	(211)			$	261
Performance-basedpre-tax yield
	(8.7) %		N/A				N/A					N/A			(12.5) %		-	%		(10.2) %		12.9	%
Realized capital gains (losses), pre-tax by
transaction type	$	(5)			$	-			$	-	$	-	$	(3)			$	-	$	(8)			$	31
Sales
Credit losses		(2)				-				-					-			(3)				-				(5)				(2)
Valuation of equity investments		6				-				-					-			26				-				32				2
Valuation and settlements of derivative		(3)				-				-					-			(2)				-				(5)				6
Total	$	(4)			$	-			$	-		$	-		$	18			$	-		$	14			$	37

1. Market-basedstrategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities.
2. Equity securities include investments in exchange traded and mutual funds whose underlying investments are fixed income securities.
3. Market-basedinvestments include publicly traded equity securities classified as limited partnerships.
4. When calculating the pre-tax yields, investee level expenses are netted against income for directly held real estate and other consolidated investments.
5. Due to the adoption of the measurement of credit losses on financial instruments accounting standard on January 1, 2020, realized capital losses previously reported as other-than-temporary impairment write-downs are presented as credit losses.
6. Performance-basedstrategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity and real estate.

The Allstate Corporation 2Q20 Supplement

38

The Allstate Corporation

Investment Position and Results by Strategy and Segment

																											As of or for the six
																												months ended
($ in millions)									As of or for the six months ended June 30, 2020											June 30, 2019
		Property-			Service				Allstate			Allstate					Allstate		Corporate and
		Liability			Businesses				Life			Benefits					Annuities			Other				Total				Total
Market-based(1)
Investment position	$	41,121		$	1,639			$	11,899	$	1,956	$	17,287		$	3,346			$	77,248			$	69,694
Interest-bearing investments
Equity securities (2)		1,850			131				173			73					1,318			341				3,886				7,678
LP and other alternative investments (3)		180			-				-			-					120			-				300				873
Total	$	43,151		$	1,770			$	12,072	$	2,029	$	18,725		$	3,687			$	81,434			$	78,245
Investment income
$	586		$	18			$	258	$	40	$	342		$	23			$	1,267			$	1,331
Interest-bearing investments
Equity securities		35			3				2			1					14			5				60				92
LP and other alternative investments		3			-				-			-					-			-				3				5
Investment income, before expense		624			21				260			41					356			28				1,330				1,428
Investee level expenses (4)		(2)			-				-			-					-			-				(2)				(4)
Income for yield calculation	$	622		$	21			$	260	$	41	$	356		$	28			$	1,328			$	1,424
Market-basedpre-tax yield
	3.0	%		2.7	%		4.6	%		4.3	%			4.1	%		1.8	%		3.5	%		3.9	%
Realized capital gains (losses), pre-tax by
transaction type	$	508		$	23			$	-	$	-	$	25		$	9			$	565			$	(26)
Sales
Credit losses (5)		(27)			-				(17)			(1)					(31)			-				(76)				152
Valuation of equity investments		(293)			(28)				5			(2)					(47)			(2)				(367)				800
Valuation and settlements of derivative		70			-				-			-					5			-				75				(34)
Total	$	258		$	(5)			$	(12)	$	(3)	$	(48)		$	7			$	197			$	892
Performance-based(6)
Investment position	$	121		$	-			$	-	$	-	$	29		$	-			$	150			$	139
Interest-bearing investments
Equity securities		242			-				-			-					84			-				326				228
LP and other alternative investments		4,657			-				-			-					3,068			2				7,727				7,879
Total	$	5,020		$	-			$	-	$	-	$	3,181		$	2			$	8,203			$	8,246
Investment income
$	3		$	-			$	-	$	-	$	-		$	-			$	3			$	5
Interest-bearing investments
Equity securities		(13)			-				-			-					(10)			-				(23)				6
LP and other alternative investments		(171)			-				-			-					(203)			-				(374)				292
Investment income, before expense		(181)			-				-			-					(213)			-				(394)				303
Investee level expenses		(15)			-				-			-					(10)			-				(25)				(36)
Income for yield calculation	$	(196)		$	-			$	-		$	-		$	(223)		$	-			$	(419)			$	267
Performance-basedpre-tax yield
	(7.7) %		N/A				N/A			N/A					(13.4) %		-	%		(9.9) %		6.6	%
Realized capital gains (losses), pre-tax by
transaction type	$	8		$	-			$	-	$	-	$	(6)		$	-			$	2			$	(3)
Sales
Credit losses		(8)			-				-			-					(5)			-				(13)				60
Valuation of equity investments		(1)			-				-			-					26			-				25				27
Valuation and settlements of derivative		22			-				-			-					9			-				31				10
Total	$	21		$	-			$	-		$	-		$	24		$	-			$	45			$	94

1. Market-basedstrategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities.
2. Equity securities include investments in exchange traded and mutual funds whose underlying investments are fixed income securities.
3. Market-basedinvestments include publicly traded equity securities classified as limited partnerships.
4. When calculating the pre-tax yields, investee level expenses are netted against income for directly held real estate and other consolidated investments.
5. Due to the adoption of the measurement of credit losses on financial instruments accounting standard on January 1, 2020, realized capital losses previously reported as other-than-temporary impairment write-downs are presented as credit losses.
6. Performance-basedstrategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity and real estate.

The Allstate Corporation 2Q20 Supplement

39

The Allstate Corporation

Performance-Based ("PB") Investments

																									As of or for the
($ in millions)									As of or for the three months ended												six months ended
			June 30,				March 31,			Dec. 31,			Sept. 30,				June 30,				March 31,				June 30,		June 30,
Investment position			2020				2020			2019			2019				2019				2019				2020			2019
Limited partnerships	$	5,575		$	5,781		$	6,131		$	6,162			$	5,952			$	5,786	$	5,575		$	5,952
Private equity
Real estate			1,112				1,090			1,041			1,008				1,033				984				1,112			1,033
PB - limited partnerships			6,687				6,871			7,172			7,170				6,985				6,770				6,687			6,985
Non-LP			395				404			409			407				355				331				395			355
Private equity
Real estate			1,121				1,106			1,128			1,017				906				808				1,121			906
PB - non-LP			1,516				1,510			1,537			1,424				1,261				1,139				1,516			1,261
Total			5,970				6,185			6,540			6,569				6,307				6,117				5,970			6,307
Private equity
Real estate			2,233				2,196			2,169			2,025				1,939				1,792				2,233			1,939
Total PB		$	8,203			$	8,381		$	8,709		$	8,594			$	8,246			$	7,909		$	8,203		$	8,246
Investment income
Limited partnerships	$	(213)		$	(199)		$	(6)		$	125			$	216			$	(5)	$	(412)		$	211
Private equity
Real estate			(7)				7			17			71				38				12				-			50
PB - limited partnerships			(220)				(192)			11			196				254				7				(412)			261
Non-LP			4				(21)			(9)			5				10				3				(17)			13
Private equity
Real estate			18				17			18			19				15				14				35			29
PB - non-LP			22				(4)			9			24				25				17				18			42
Total			(209)				(220)			(15)			130				226				(2)				(429)			224
Private equity
Real estate			11				24			35			90				53				26				35			79
Total PB		$	(198)			$	(196)		$	20		$	220			$	279			$	24		$	(394)		$	303
Investee level expenses (1)	$	(13)		$	(12)		$	(20)		$	(18)			$	(18)			$	(18)	$	(25)		$	(36)
Realized capital gains (losses) (1)
Limited partnerships	$	(5)		$	(2)		$	42		$	(1)			$	(3)			$	(3)	$	(7)		$	(6)
Private equity
Real estate			-				(3)			(3)			-				1				-				(3)			1
PB - limited partnerships			(5)				(5)			39			(1)				(2)				(3)				(10)			(5)
Non-LP			26				15			(13)			17				8				28				41			36
Private equity
Real estate			(7)				21			(11)			10				31				32				14			63
PB - non-LP			19				36			(24)			27				39				60				55			99
Total			21				13			29			16				5				25				34			30
Private equity
Real estate			(7)				18			(14)			10				32				32				11			64
Total PB		$	14			$	31		$	15		$	26			$	37			$	57		$	45		$	94
Pre-Tax Yield			(10.2)	%			(9.7) %		-	%		9.6	%			12.9	%			0.3	%			(9.9) %		6.6	%
Internal Rate of Return (2)			11.3	%			12.1	% (3)		12.2	%		12.4	%			12.1	%			11.4	%
10 Year
5 Year			8.6				10.2	(3)		10.8			11.2				11.4				11.2
3 Year			7.5				10.4	(3)		11.7			12.7				12.7				11.6
1 Year			(2.2)				6.5		7.6			9.7				9.5				6.7
					(3)

1. Beginning January 1, 2020, depreciation previously included in investee level expenses is reported as realized capital gains or losses.
2. The internal rate of return ("IRR") is one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of return on the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments.
3. For the three months ended March 31, 2020, IRR excludes decreases of $247 million that were recorded in consideration of intervening events. Where information was available to enable updated estimates, we recognized current period declines in the value of limited partnership interests. This included updating publicly traded investments held within limited partnerships to their March 31, 2020 values, which reduced income $52 million. Additionally, $195 million of valuation increases reported in the fourth quarter 2019 partnership financial statements were excluded from income considering the equity market decline in March.

The Allstate Corporation 2Q20 Supplement

40

Definitions of Non-GAAP Measures

We believe that investors' understanding of Allstate's performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Adjusted net income is net income applicable to common shareholders, excluding:

• realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income,
• pension and other postretirement remeasurement gains and losses, after-tax,
• valuation changes on embedded derivatives not hedged, after-tax,
• amortization of deferred policy acquisition costs ("DAC") and deferred sales inducements ("DSI"), to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives not hedged, after-tax,
• business combination expenses and the amortization or impairment of purchased intangibles, after-tax,
• gain (loss) on disposition of operations, after-tax, and
• adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years.

Net income applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income. We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial service business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, valuation changes on embedded derivatives not hedged, business combination expenses and the amortization or impairment of purchased intangibles, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items. Realized capital gains and losses, pension and other postretirement remeasurement gains and losses, valuation changes on embedded derivatives not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Consistent with our intent to protect results or earn additional income, adjusted net income includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes. These instruments are used for economic hedges and to replicate fixed income securities, and by including them in adjusted net income, we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments. Business combination expenses are excluded because they are non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of adjusted net income to net income applicable to common shareholders is provided in the schedule, "Contribution to Income".

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles ("underlying combined ratio") is a non-GAAPratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophereserve reestimates on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liabilitybusiness that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves which could increase or decrease current year income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedules "Property-LiabilityResults", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "Auto Profitability Measures by Brand", "Homeowners Profitability Measures by Brand", "Other Personal Lines Profitability Measures by Brand" and "Commercial Lines Profitability Measures".

Average underlying loss (incurred pure premium) and expense is calculated as the underlying combined ratio (a non-GAAP measure) provided on the schedule "Auto Profitability Measures by Brand" and "Homeowners Profitability Measures by Brand" multiplied by average premium calculated using annualized GAAP quarterly earned premium, which is annualized (multiplied by 4), provided on the schedule "Auto Profitability Measures by Brand" and "Homeowners Profitability Measures by Brand", divided by the policies in force provided on the schedule "Policies in Force" ("average premium"). We believe that this measure is useful to investors and it is used by management for the same reasons noted above for the underlying combined ratio. The results of these calculations are provided on the schedule "Allstate Brand Statistics".

The Allstate Corporation 2Q20 Supplement

41

Definitions of Non-GAAP Measures (continued)

Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Property-Liability Results", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "Auto Profitability Measures by Brand", "Homeowners Profitability Measures by Brand" and "Other Personal Lines Profitability Measures by Brand".

Adjusted net income return on common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of common shareholders' equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on common shareholders' equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders' equity primarily attributable to the Company's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income applicable to common shareholders and return on common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on common shareholders' equity from return on common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on common shareholders' equity and return on common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders' equity results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management's utilization of capital. Adjusted net income return on common shareholders' equity should not be considered a substitute for return on common shareholders' equity and does not reflect the overall profitability of our business. A reconciliation of return on common shareholders' equity and adjusted net income return on common shareholders' equity can be found in the schedule, "Return on Common Shareholders' Equity".

Adjusted net income return on adjusted equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses and goodwill. Return on equity is the most directly comparable GAAP measure. We use average equity excluding the effect of unrealized net capital gains and losses and goodwill for the denominator as a representation of equity primarily attributable to the Company's earned and realized business operations. Unrealized net capital gains and losses are excluded because they vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. Goodwill is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results. We believe it is useful for investors to have adjusted net income return on adjusted equity when evaluating our performance as it represents a reliable, representative and consistent measurement of the company and management's utilization of capital. Adjusted net income return on adjusted equity should not be considered a substitute for return on equity and does not reflect the overall profitability of our business. A reconciliation of return on equity and adjusted net income return on adjusted equity can be found in the schedules, "Allstate Life Return on Equity", "Allstate Benefits Return on Equity" and "Allstate Annuities Return on Equity".

Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAPmeasure. It is calculated by dividing common shareholders' equity after excluding the impact of unrealized net capital gains and losses on fixed income securities and related DAC, DSI and life insurance reserves by total common shares outstanding plus dilutive potential common shares outstanding. We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. We believe the non-GAAPratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business. A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share".

The Allstate Corporation 2Q20 Supplement

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