THE ALLSTATE CORPORATION The Allstate Corporation
Investor Supplement
Second Quarter 2022
The condensed consolidated financial statements and financial exhibits included herein are unaudited and 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 2022
Table of Contents
Consolidated Operations | Protection Services | ||
Condensed Consolidated Statements of Operations | 1 | Segment Results | 13 |
Contribution to Income | 2 | ||
Book Value per Common Share and Debt to Capital | 3 | Allstate Health and Benefits | |
Return on Allstate Common Shareholders' Equity | 4 | Segment Results and Other Statistics | 14 |
Policies in Force | 5 | Corporate and Other | |
Property-Liability | |||
Segment Results | 15 | ||
Results | 6 | Investments | |
Allstate Protection | |||
Profitability Measures | 7 | Investment Position and Results | 16 |
Impact of Net Rate Changes Implemented on Premiums Written | 8 | Investment Position and Results by Strategy | 17 |
Auto Profitability Measures | 9 | ||
Auto Statistics | 10 | Definitions of Non-GAAP Measures | 18,19 |
Allstate Brand Auto State Profitability | 11 | ||
Homeowners Profitability Measures | 12 | Glossary | 20 |
Items included in the glossary are denoted with a caret (^) the first time used.
The Allstate Corporation
Condensed Consolidated Statements of Operations
($ in millions, except per share data) | Three months ended | Six months ended | ||||||||||||||||||||||||||
March 31, | Dec. 31, | Sept. 30, | March 31, | June 30, | June 30, | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Property and casualty insurance premiums ^ | $ | 11,362 | $ | 10,981 | $ | 10,852 | $ | 10,615 | $ | 10,444 | $ | 10,307 | $ | 22,343 | $ | 20,751 | ||||||||||||
Accident and health insurance premiums and contract charges ^ | 466 | 469 | 459 | 460 | 447 | 455 | 935 | 902 | ||||||||||||||||||||
Other revenue ^ | 563 | 560 | 587 | 536 | 494 | 555 | 1,123 | 1,049 | ||||||||||||||||||||
Net investment income | 562 | 594 | 847 | 764 | 974 | 708 | 1,156 | 1,682 | ||||||||||||||||||||
Net gains (losses) on investments and derivatives | (733) | (267) | 266 | 105 | 287 | 426 | (1,000) | 713 | ||||||||||||||||||||
Total revenues | 12,220 | 12,337 | 13,011 | 12,480 | 12,646 | 12,451 | 24,557 | 25,097 | ||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||
Property and casualty insurance claims and claims expense | 9,367 | 7,822 | 7,804 | 8,264 | 7,207 | 6,043 | 17,189 | 13,250 | ||||||||||||||||||||
Shelter-in-Place Payback expense | - | - | - | - | 29 | - | - | 29 | ||||||||||||||||||||
Accident, health and other policy benefits | 269 | 269 | 278 | 277 | 252 | 242 | 538 | 494 | ||||||||||||||||||||
Amortization of deferred policy acquisition costs | 1,619 | 1,612 | 1,602 | 1,582 | 1,545 | 1,523 | 3,231 | 3,068 | ||||||||||||||||||||
Operating costs and expenses | 1,850 | 1,902 | 1,956 | 1,890 | 1,683 | 1,731 | 3,752 | 3,414 | ||||||||||||||||||||
Pension and other postretirement remeasurement (gains) losses | 259 | (247) | (240) | 40 | (134) | (310) | 12 | (444) | ||||||||||||||||||||
Restructuring and related charges | 1 | 12 | 25 | 23 | 71 | 51 | 13 | 122 | ||||||||||||||||||||
Amortization of purchased intangibles | 87 | 87 | 109 | 109 | 105 | 53 | 174 | 158 | ||||||||||||||||||||
Interest expense | 83 | 83 | 84 | 69 | 91 | 86 | 166 | 177 | ||||||||||||||||||||
Total costs and expenses | 13,535 | 11,540 | 11,618 | 12,254 | 10,849 | 9,419 | 25,075 | 20,268 | ||||||||||||||||||||
Income (loss) from operations before income tax expense | (1,315) | 797 | 1,393 | 226 | 1,797 | 3,032 | (518) | 4,829 | ||||||||||||||||||||
Income tax expense (benefit) | (291) | 151 | 281 | 20 | 362 | 626 | (140) | 988 | ||||||||||||||||||||
Net income (loss) from continuing operations | (1,024) | 646 | 1,112 | 206 | 1,435 | 2,406 | (378) | 3,841 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | - | - | (321) | 325 | 196 | (3,793) | - | (3,597) | ||||||||||||||||||||
Net income (loss) | (1,024) | 646 | 791 | 531 | 1,631 | (1,387) | (378) | 244 | ||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (9) | (10) | (26) | (7) | 6 | (6) | (19) | - | ||||||||||||||||||||
Net income (loss) attributable to Allstate | (1,015) | 656 | 817 | 538 | 1,625 | (1,381) | (359) | 244 | ||||||||||||||||||||
Less: Preferred stock dividends | 27 | 26 | 27 | 30 | 30 | 27 | 53 | 57 | ||||||||||||||||||||
Net income (loss) applicable to common shareholders | $ | (1,042) | $ | 630 | $ | 790 | $ | 508 | $ | 1,595 | $ | (1,408) | $ | (412) | $ | 187 | ||||||||||||
Earnings per common share | ||||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||||
Continuing operations | $ | (3.81) | $ | 2.27 | $ | 3.90 | $ | 0.62 | $ | 4.68 | $ | 7.88 | $ | (1.49) | $ | 12.59 | ||||||||||||
Discontinued operations | - | - | (1.13) | 1.11 | 0.66 | (12.53) | - | (11.97) | ||||||||||||||||||||
Total | $ | (3.81) | $ | 2.27 | $ | 2.77 | $ | 1.73 | $ | 5.34 | $ | (4.65) | $ | (1.49) | $ | 0.62 | ||||||||||||
Diluted | (3.81) (1) | (1.49) (1) | ||||||||||||||||||||||||||
Continuing operations | $ | $ | 2.24 | $ | 3.84 | $ | 0.62 | $ | 4.61 | $ | 7.78 | $ | $ | 12.41 | ||||||||||||||
Discontinued operations | - | - | (1.11) | 1.09 | 0.65 | (12.38) | - | (11.80) | ||||||||||||||||||||
Total | $ | (3.81) | $ | 2.24 | $ | 2.73 | $ | 1.71 | $ | 5.26 | $ | (4.60) | $ | (1.49) | $ | 0.61 | ||||||||||||
Weighted average common shares - Basic | 273.8 | 278.1 | 285.0 | 293.1 | 298.8 | 302.5 | 275.9 | 300.6 | ||||||||||||||||||||
Weighted average common shares - Diluted | 273.8 (1) | 281.8 | 289.0 | 297.9 | 303.3 | 306.4 | 275.9 (1) | 304.9 | ||||||||||||||||||||
Cash dividends declared per common share | $ | 0.85 | $ | 0.85 | $ | 0.81 | $ | 0.81 | $ | 0.81 | $ | 0.81 | $ | 1.70 | $ | 1.62 | ||||||||||||
- Due to a net loss reported for the three and six months ended June 30, 2022, calculation uses weighted average shares of 273.8 million and 275.9 million, which excludes weighted average diluted shares of 3.2 million and 3.5 million, respectively.
The Allstate Corporation 2Q22 Supplement | 1 |
The Allstate Corporation
Contribution to Income
($ in millions, except per share data) | Three months ended | Six months ended |
Contribution to income
Net income (loss) applicable to common shareholders
Net (gains) losses on investments and derivatives
Pension and other postretirement remeasurement (gains) losses
Reclassification of periodic settlements and accruals on non-hedge derivative instruments
Business combination expenses and the amortization of purchased intangibles
Business combination fair value adjustment (Gain) loss on disposition of operations (Income) loss from discontinued operations Income tax expense (benefit)
Adjusted net income (loss) *
Income per common share - Diluted
Net income (loss) applicable to common shareholders
Net (gains) losses on investments and derivatives
Pension and other postretirement remeasurement (gains) losses
Reclassification of periodic settlements and accruals on non-hedge derivative instruments
Business combination expenses and the amortization of purchased intangibles
Business combination fair value adjustment (Gain) loss on disposition of operations (Income) loss from discontinued operations Income tax expense (benefit)
Adjusted net income (loss) *
Weighted average common shares - Diluted
June 30,
2022
$ (1,042)
733
259
-
87
-
(27)
-
(219)
$ (209)
$ (3.81)
2.68
0.95
-
0.32
-
(0.10)
-
(0.80)
$ (0.76)
273.8
March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||
$ | 630 | $ | 790 | $ | 508 | $ | 1,595 | $ | (1,408) | $ | (412) | $ | 187 | ||||||||||
267 | (266) | (105) | (287) | (426) | 1,000 | (713) | |||||||||||||||||
(247) | (240) | 40 | (134) | (310) | 12 | (444) | |||||||||||||||||
- | (1) | - | - | 1 | - | 1 | |||||||||||||||||
87 | 109 | 109 | 105 | 75 | 174 | 180 | |||||||||||||||||
- | - | - | (6) | - | - | (6) | |||||||||||||||||
16 | - | - | - | - | (11) | - | |||||||||||||||||
- | 177 | (235) | (493) | 4,163 | - | 3,670 | |||||||||||||||||
(27) | 227 | (100) | 369 | (224) | (246) | 145 | |||||||||||||||||
$ | 726 | $ | 796 | $ | 217 | $ | 1,149 | $ | 1,871 | $ | 517 | $ | 3,020 | ||||||||||
(1) | $ | 2.24 | $ | 2.73 | $ | 1.71 | $ | 5.26 | $ | (4.60) | $ | (1.49) (2) | $ | 0.61 | |||||||||
0.95 | (0.92) | (0.35) | (0.95) | (1.39) | 3.58 | (2.34) | |||||||||||||||||
(0.88) | (0.83) | 0.13 | (0.44) | (1.01) | 0.05 | (1.46) | |||||||||||||||||
- | - | - | - | - | - | - | |||||||||||||||||
0.31 | 0.38 | 0.37 | 0.35 | 0.25 | 0.63 | 0.59 | |||||||||||||||||
- | - | - | (0.02) | - | - | (0.02) | |||||||||||||||||
0.06 | - | - | - | - | (0.04) | - | |||||||||||||||||
- | 0.61 | (0.79) | (1.63) | 13.59 | - | 12.04 | |||||||||||||||||
(0.10) | 0.78 | (0.34) | 1.22 | (0.73) | (0.88) | 0.48 | |||||||||||||||||
(1) | $ | 2.58 | $ | 2.75 | $ | 0.73 | $ | 3.79 | $ | 6.11 | $ | 1.85 | $ | 9.90 | |||||||||
(1) | |||||||||||||||||||||||
281.8 | 289.0 | 297.9 | 303.3 | 306.4 | 279.4 | 304.9 | |||||||||||||||||
- Due to a net loss reported for the three months ended June 30, 2022, calculation uses weighted average shares of 273.8 million, which excludes weighted average diluted shares of 3.2 million.
- Due to a net loss reported for the six months ended June 30, 2022, calculation uses weighted average shares of 275.9 million, which excludes weighted average diluted shares of 3.5 million.
The Allstate Corporation 2Q22 Supplement | 2 |
The Allstate Corporation
Book Value per Common Share and Debt to Capital
($ in millions, except per share data) | June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
Book value per common share | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||
Allstate common shareholders' equity (1) | $ | 18,145 | $ | 21,242 | $ | 23,209 | $ | 24,759 | $ | 26,037 | $ | 24,649 | |||||||||
Denominator: | |||||||||||||||||||||
Common shares outstanding and dilutive potential | |||||||||||||||||||||
common shares outstanding (2) | 274.3 | 279.7 | 284.7 | 292.6 | 301.6 | 304.0 | |||||||||||||||
Book value per common share | $ | 66.15 | $ | 75.95 | $ | 81.52 | $ | 84.62 | $ | 86.33 | $ | 81.08 | |||||||||
Book value per common share, excluding the impact of | |||||||||||||||||||||
unrealized net capital gains and losses on fixed income | |||||||||||||||||||||
securities | |||||||||||||||||||||
Numerator: | $ | 18,145 | $ | 21,242 | $ | 23,209 | $ | 24,759 | $ | 26,037 | $ | 24,649 | |||||||||
Allstate common shareholders' equity | |||||||||||||||||||||
Less: Unrealized net capital gains and losses on fixed | (2,141) | (995) | 601 | 1,830 | 2,167 | 1,680 | |||||||||||||||
income securities | |||||||||||||||||||||
Adjusted Allstate common shareholders' equity | $ | 20,286 | $ | 22,237 | $ | 22,608 | $ | 22,929 | $ | 23,870 | $ | 22,969 | |||||||||
Denominator: | |||||||||||||||||||||
Common shares outstanding and dilutive potential | 274.3 | 279.7 | 284.7 | 292.6 | 301.6 | 304.0 | |||||||||||||||
common shares outstanding | |||||||||||||||||||||
Book value per common share, excluding the impact of | |||||||||||||||||||||
unrealized net capital gains and losses on fixed income | 73.96 | 79.50 | 79.41 | 78.36 | 79.14 | 75.56 | |||||||||||||||
securities * | |||||||||||||||||||||
Total debt | $ | 7,970 | $ | 7,973 | $ | 7,976 | $ | 7,980 | $ | 7,996 | $ | 7,996 | |||||||||
Total capital resources | $ | 28,085 | $ | 31,185 | $ | 33,155 | $ | 34,709 | $ | 36,203 | $ | 34,815 | |||||||||
Ratio of debt to Allstate shareholders' equity | 39.6 % | 34.3 % | 31.7 % | 29.9 % | 28.3 % | 29.8 % | |||||||||||||||
Ratio of debt to capital resources | 28.4 % | 25.6 % | 24.1 % | 23.0 % | 22.1 % | 23.0 % | |||||||||||||||
- Excludes equity related to preferred stock of $1,970 million at June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021 and $2,170 million at June 30, 2021 and March 31, 2021.
- Common shares outstanding were 271,217,672 and 280,594,850 as of June 30, 2022 and December 31, 2021, respectively.
The Allstate Corporation 2Q22 Supplement | 3 |
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The Allstate Corporation published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 21:13:17 UTC.
