Business Wire | Aug 4, 2021 06:36PM EDT

Allstate Delivers Strong Performance as Economic Activity Increases

Aug. 04, 2021

NORTHBROOK, Ill.--(BUSINESS WIRE)--Aug. 04, 2021--The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2021.

The Allstate Corporation Consolidated Highlights

Three months ended June 30, Six months ended June 30,

($ in millions, % / pts % / ptsexcept per share 2021 2020 Change 2021 2020 Changedata and ratios)

Consolidated $ 12,646 $ 10,403 21.6 $ 25,097 $ 20,269 23.8 revenues

Net incomeapplicable to 1,595 1,224 30.3 187 1,737 (89.2) commonshareholders

per diluted common 5.26 3.86 36.3 0.61 5.43 (88.8) share

Adjusted net 1,149 816 40.8 3,020 2,018 49.7 income*

per diluted common 3.79 2.58 46.9 9.90 6.31 56.9 share*

Return on Allstate common shareholders' equity (trailing twelve months)

Net incomeapplicable to 15.3 % 18.2 % (2.9) commonshareholders

Adjusted net 23.8 % 18.0 % 5.8 income*

Book value per 86.33 79.21 9.0 common share

Property-Liability combined ratio

Recorded 95.7 89.8 5.9 89.5 87.3 2.2

Underlying 85.7 76.8 8.9 81.4 79.5 1.9 combined ratio*

Property-Liabilityinsurance premiums 10,009 8,863 12.9 19,905 17,744 12.2 earned

Catastrophe losses 952 1,186 (19.7) 1,542 1,397 10.4

Shelter-in-Place 29 738 (96.1) 29 948 (96.9) Payback expense

Total policies inforce (in 189,361 165,463 14.4 thousands)

*

Measures used in this release that are not based on accounting principles generally accepted in the United States of America ("non-GAAP") are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the "Definitions of Non-GAAP Measures" section of this document.

"Allstate has performed exceptionally as the economy rebounds from the pandemic by focusing on execution, innovation and long-term value creation," said Tom Wilson, Chair, President and CEO of The Allstate Corporation. "Revenues grew 21.6% over the prior year, reflecting execution of a multi-faceted plan to increase growth. The Property-Liability combined ratio of 95.7 was attractive despite an increase in the frequency of auto accidents and $952 million of catastrophe losses. Investment income from the performance-based portfolio increased by $759 million, reflecting our long-term approach to managing risk-adjusted returns. This strong execution resulted in second quarter net income of $1.6 billion. Adjusted net income* was $3.79 per share, representing a return on equity of 23.8% for the last twelve months.

"The Transformative Growth plan and innovation are also creating long-term shareholder value. Property-Liability policies in force and premiums written were 12.1% and 12.5%, respectively, above the prior year due to expansion of auto insurance sold through independent agents with the National General acquisition. Policies in force through Allstate's direct and agent operations were flat as a 6.7% increase in new business, due to improved auto insurance pricing and increased advertising, was offset by lower customer retention reflecting pandemic-related customer support in the prior year. Telematics innovation has resulted in rapid growth of pay-per-mile auto insurance and Arity's expansion into marketing services. The new $5 billion share repurchase program that was approved today will help maintain a top 15% ranking of cash returns to shareholders among S&P 500 companies," concluded Wilson.

Second Quarter 2021 Results

* Total revenues of $12.6 billion in the second quarter of 2021 increased 21.6% compared to the prior year quarter, primarily reflecting higher earned premiums from the acquisition of National General and increased net investment income. Higher revenues from Protection Services, driven by the continued expansion of Allstate Protection Plans, also contributed to revenue growth in the quarter.

* Net income applicable to common shareholders increased to $1.6 billion in the second quarter of 2021, compared to net income of $1.2 billion in the second quarter of 2020, primarily driven by higher performance-based investment income results.

* Adjusted net income* of $1.1 billion, or $3.79 per diluted share, increased $333 million compared to the prior year quarter. The increase reflects higher net investment income and higher earned premiums from the acquisition of National General and lower Shelter-in-Place Payback expense, partially offset by higher non-catastrophe losses. The second quarter of 2020 was significantly impacted by the low level of auto accident frequency experienced due to the pandemic.

Measures used in this release that are not based on accounting principles generally accepted in the United States of America ("non-GAAP") are denoted* with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the "Definitions of Non-GAAP Measures" section of this document.

"Allstate has performed exceptionally as the economy rebounds from the pandemic by focusing on execution, innovation and long-term value creation," said Tom Wilson, Chair, President and CEO of The Allstate Corporation. "Revenues grew 21.6% over the prior year, reflecting execution of a multi-faceted plan to increase growth. The Property-Liability combined ratio of 95.7 was attractive despite an increase in the frequency of auto accidents and $952 million of catastrophe losses. Investment income from the performance-based portfolio increased by $759 million, reflecting our long-term approach to managing risk-adjusted returns. This strong execution resulted in second quarter net income of $1.6 billion. Adjusted net income* was $3.79 per share, representing a return on equity of 23.8% for the last twelve months.

"The Transformative Growth plan and innovation are also creating long-term shareholder value. Property-Liability policies in force and premiums written were 12.1% and 12.5%, respectively, above the prior year due to expansion of auto insurance sold through independent agents with the National General acquisition. Policies in force through Allstate's direct and agent operations were flat as a 6.7% increase in new business, due to improved auto insurance pricing and increased advertising, was offset by lower customer retention reflecting pandemic-related customer support in the prior year. Telematics innovation has resulted in rapid growth of pay-per-mile auto insurance and Arity's expansion into marketing services. The new $5 billion share repurchase program that was approved today will help maintain a top 15% ranking of cash returns to shareholders among S&P 500 companies," concluded Wilson.

Second Quarter 2021 Results

* Total revenues of $12.6 billion in the second quarter of 2021 increased 21.6% compared to the prior year quarter, primarily reflecting higher earned premiums from the acquisition of National General and increased net investment income. Higher revenues from Protection Services, driven by the continued expansion of Allstate Protection Plans, also contributed to revenue growth in the quarter.

* Net income applicable to common shareholders increased to $1.6 billion in the second quarter of 2021, compared to net income of $1.2 billion in the second quarter of 2020, primarily driven by higher performance-based investment income results.

* Adjusted net income* of $1.1 billion, or $3.79 per diluted share, increased $333 million compared to the prior year quarter. The increase reflects higher net investment income and higher earned premiums from the acquisition of National General and lower Shelter-in-Place Payback expense, partially offset by higher non-catastrophe losses. The second quarter of 2020 was significantly impacted by the low level of auto accident frequency experienced due to the pandemic.

Property-Liability Results

Three months ended June 30, Six months ended June 30,

($ in millions, except 2021 2020 % / pts 2021 2020 % / ptsratios) Change Change

Premiums written $ 10,323 $ 9,172 12.5 % 20,091 17,764 13.1 %

Allstate Brand 9,008 8,909 1.1 17,429 17,279 0.9

National General 1,315 263 NM 2,662 485 NM



Underwriting income 429 902 (52.4 ) 2,086 2,250 (7.3 )

Allstate Brand 414 899 (53.9 ) 1,929 2,235 (13.7 )

National General 15 6 NM 153 20 NM



Recorded combined ratio 95.7 89.8 5.9 89.5 87.3 2.2

Allstate Protection auto 94.3 83.8 10.5 87.4 86.6 0.8

Allstate Protection 100.3 106.8 (6.5 ) 94.6 89.2 5.4 homeowners



Underlying combined 85.7 76.8 8.9 81.4 79.5 1.9 ratio*

Allstate Protection auto 91.8 82.4 9.4 86.0 85.6 0.4

Allstate Protection 69.5 60.6 8.9 68.6 61.5 7.1 homeowners

NM = not meaningful

* Property-Liability written premium of $10.3 billion increased 12.5% in the second quarter of 2021 compared to the prior year quarter, primarily driven by the acquisition of National General. The recorded combined ratio of 95.7 generated underwriting income of $429 million, a decrease of $473 million compared to the prior year quarter. Income decreased primarily due to higher non-catastrophe losses in auto and homeowners insurance, which were partially offset by increased premiums related to the acquisition of National General and lower Shelter-in-Place Payback expense. The underlying combined ratio* of 85.7 for the second quarter of 2021 was 8.9 points above the prior year quarter, reflecting higher non-catastrophe losses due to increased auto accident frequency and higher incurred auto and homeowners claims severity, partially offset by lower expenses. Cost reductions implemented in 2020 and continuing in 2021 provide operational flexibility to improve customer value and invest in growth. The expense ratio of 24.7 decreased 7.1 points compared to the prior year quarter, due to lower Coronavirus-related expenses from Shelter-in-Place Payback and bad debt. This was partially offset by the amortization of purchased intangibles, increased advertising of 0.7 points and restructuring charges of $66 million. Excluding these items, the expense ratio decreased 0.4 points compared to the prior year quarter due to lower operating expenses. Increased claims process efficiency and expanded digital capabilities have also resulted in lower expenses while improving the customer experience. Allstate Protection auto insurance net written premium increased 10.1%, and policies in force increased 14.1% compared to the prior year quarter, driven by the acquisition of National General and increased new issued applications. Allstate brand auto net written premiums declined slightly from the prior year quarter as increased new issued applications were offset by lower average premiums. Policies in force increased sequentially for the second consecutive quarter, increasing 161 thousand compared to the end of the first quarter 2021, including 96 thousand from the Allstate brand. The recorded auto insurance combined ratio of 94.3 in the second quarter of 2021 was 10.5 points above the prior year quarter, and the underlying combined ratio* of 91.8 was 9.4 points above the prior year quarter, primarily due to an increase in the loss ratio, partially offset by a lower expense ratio. The auto loss ratio increase was driven by higher accident frequency as miles driven rebound toward pre-pandemic levels and higher incurred claim severity from inflation and supply chain disruptions. Allstate Protection homeowners insurance net written premium grew 19.2%, and policies in force increased 7.5% compared to the second quarter of 2020, due to the acquisition of National General and growth of Allstate brand policies. Allstate brand net written premium increased 6.2% compared to the prior year quarter, driven by higher average premiums and new issued application growth. The recorded homeowners insurance combined ratio of 100.3 in the second quarter of 2021 was 6.5 points below the second quarter of 2020, primarily driven by lower catastrophe losses and increased premiums earned, partially offset by higher non-catastrophe losses. The underlying combined ratio* of 69.5 was 8.9 points higher than the prior year quarter, reflecting the inclusion of National General's results, higher non-catastrophe claim frequency and increased severity due to inflation in labor and material costs.

NM = not meaningful

* Property-Liability written premium of $10.3 billion increased 12.5% in the second quarter of 2021 compared to the prior year quarter, primarily driven by the acquisition of National General. The recorded combined ratio of 95.7 generated underwriting income of $429 million, a decrease of $473 million compared to the prior year quarter. Income decreased primarily due to higher non-catastrophe losses in auto and homeowners insurance, which were partially offset by increased premiums related to the acquisition of National General and lower Shelter-in-Place Payback expense. The underlying combined ratio* of 85.7 for the second quarter of 2021 was 8.9 points above the prior year quarter, reflecting higher non-catastrophe losses due to increased auto accident frequency and higher incurred auto and homeowners claims severity, partially offset by lower expenses. Cost reductions implemented in 2020 and continuing in 2021 provide operational flexibility to improve customer value and invest in growth. The expense ratio of 24.7 decreased 7.1 points compared to the prior year quarter, due to lower Coronavirus-related expenses from Shelter-in-Place Payback and bad debt. This was partially offset by the amortization of purchased intangibles, increased advertising of 0.7 points and restructuring charges of $66 million. Excluding these items, the expense ratio decreased 0.4 points compared to the prior year quarter due to lower operating expenses. Increased claims process efficiency and expanded digital capabilities have also resulted in lower expenses while improving the customer experience. Allstate Protection auto insurance net written premium increased 10.1%, and policies in force increased 14.1% compared to the prior year quarter, driven by the acquisition of National General and increased new issued applications. Allstate brand auto net written premiums declined slightly from the prior year quarter as increased new issued applications were offset by lower average premiums. Policies in force increased sequentially for the second consecutive quarter, increasing 161 thousand compared to the end of the first quarter 2021, including 96 thousand from the Allstate brand. The recorded auto insurance combined ratio of 94.3 in the second quarter of 2021 was 10.5 points above the prior year quarter, and the underlying combined ratio* of 91.8 was 9.4 points above the prior year quarter, primarily due to an increase in the loss ratio, partially offset by a lower expense ratio. The auto loss ratio increase was driven by higher accident frequency as miles driven rebound toward pre-pandemic levels and higher incurred claim severity from inflation and supply chain disruptions. Allstate Protection homeowners insurance net written premium grew 19.2%, and policies in force increased 7.5% compared to the second quarter of 2020, due to the acquisition of National General and growth of Allstate brand policies. Allstate brand net written premium increased 6.2% compared to the prior year quarter, driven by higher average premiums and new issued application growth. The recorded homeowners insurance combined ratio of 100.3 in the second quarter of 2021 was 6.5 points below the second quarter of 2020, primarily driven by lower catastrophe losses and increased premiums earned, partially offset by higher non-catastrophe losses. The underlying combined ratio* of 69.5 was 8.9 points higher than the prior year quarter, reflecting the inclusion of National General's results, higher non-catastrophe claim frequency and increased severity due to inflation in labor and material costs.

Protection Services Results

Three months ended June Six months ended June 30, 30,

($ in millions) 2021 2020 % / $ 2021 2020 % / $ Change Change

Total revenues ^(1) $ 581 $ 457 27.1 % $ 1,133 $ 911 24.4 %

Allstate Protection 295 232 27.2 570 451 26.4 Plans

Allstate Dealer 130 118 10.2 253 235 7.7 Services

Allstate Roadside 60 53 13.2 119 113 5.3

Arity 64 26 146.2 128 56 128.6

Allstate Identity 32 28 14.3 63 56 12.5 Protection

Adjusted net income $ 56 $ 38 $ 18 $ 105 $ 75 $ 30 (loss)

Allstate Protection 42 35 7 87 69 18 Plans

Allstate Dealer 10 8 2 18 15 3 Services

Allstate Roadside 2 2 - 6 4 2

Arity 1 (3 ) 4 3 (6 ) 9

Allstate Identity 1 (4 ) 5 (9 ) (7 ) (2 )Protection

(1)

Excludes realized capital gains and losses

* Protection Services revenues increased to $581 million in the second quarter of 2021, 27.1% higher than the prior year quarter. Adjusted net income of $56 million increased by $18 million compared to the prior year quarter, due to growth at Allstate Protection Plans and profits at Arity and Allstate Identity Protection. Allstate Protection Plans revenue of $295 million increased $63 million, or 27.2%, compared to the prior year quarter, reflecting increased policies in force. Adjusted net income of $42 million in the second quarter of 2021 was $7 million higher than the prior year quarter, driven by profitable growth. Allstate Dealer Services revenue of $130 million was 10.2% higher than the second quarter of 2020, driven by increased auto industry sales and the impact of lower volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $10 million in the second quarter was $2 million higher than the prior year quarter. Allstate Roadside revenue of $60 million in the second quarter of 2021 increased 13.2% compared to the prior year quarter, driven by the impact of lower rescue volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $2 million in the second quarter of 2021 was flat compared to the prior year quarter. Arity revenue of $64 million increased $38 million compared to the prior year quarter, primarily driven by the inclusion of Transparent.ly and LeadCloud as a result of the National General acquisition, and increased device sales driven by growth in the Allstate brand Milewise(r) product. Adjusted net income of $1 million in the second quarter of 2021 improved $4 million compared to the prior year quarter. Allstate Identity Protection revenue of $32 million in the second quarter of 2021 increased 14.3% compared to the prior year quarter. Adjusted net income of $1 million in the second quarter of 2021 increased $5 million compared to the prior year quarter.

^(1) Excludes realized capital gains and losses

* Protection Services revenues increased to $581 million in the second quarter of 2021, 27.1% higher than the prior year quarter. Adjusted net income of $56 million increased by $18 million compared to the prior year quarter, due to growth at Allstate Protection Plans and profits at Arity and Allstate Identity Protection. Allstate Protection Plans revenue of $295 million increased $63 million, or 27.2%, compared to the prior year quarter, reflecting increased policies in force. Adjusted net income of $42 million in the second quarter of 2021 was $7 million higher than the prior year quarter, driven by profitable growth. Allstate Dealer Services revenue of $130 million was 10.2% higher than the second quarter of 2020, driven by increased auto industry sales and the impact of lower volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $10 million in the second quarter was $2 million higher than the prior year quarter. Allstate Roadside revenue of $60 million in the second quarter of 2021 increased 13.2% compared to the prior year quarter, driven by the impact of lower rescue volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $2 million in the second quarter of 2021 was flat compared to the prior year quarter. Arity revenue of $64 million increased $38 million compared to the prior year quarter, primarily driven by the inclusion of Transparent.ly and LeadCloud as a result of the National General acquisition, and increased device sales driven by growth in the Allstate brand Milewise(r) product. Adjusted net income of $1 million in the second quarter of 2021 improved $4 million compared to the prior year quarter. Allstate Identity Protection revenue of $32 million in the second quarter of 2021 increased 14.3% compared to the prior year quarter. Adjusted net income of $1 million in the second quarter of 2021 increased $5 million compared to the prior year quarter.

Allstate Health and Benefits Results

Three months ended June Six months ended June 30, 30,

($ in millions) 2021 2020 % Change 2021 2020 % Change

Premiums and contract 447 263 70.0 902 545 65.5 charges

Employer voluntary benefits 255 263 (3.0 ) 518 545 (5.0 )

Group health 87 - NM 170 - NM

Individual accident and 105 - NM 214 - NMhealth

Adjusted net income 62 5 NM 127 29 NM

* Allstate Health and Benefits premiums and contract charges increased 70.0% compared to the prior year quarter, primarily due to the addition of group health and individual accident and health businesses acquired with National General. Adjusted net income of $62 million in the second quarter of 2021 increased by $57 million compared to the second quarter of 2020, primarily due to the addition of National General and the absence of a capitalized software write-off recognized in the prior year quarter.

Allstate Investment Results

Three months ended Six months ended June 30, June 30,

$ / $ / pts($ in millions, except 2021 2020 pts 2021 2020ratios) Change Change

Net investment income $ 974 $ 220 754 $ 1,682 $ 466 1,216

Market-based investment 355 352 3 709 712 (3 )income ^(1)

Performance-based 649 (110 ) 759 1,027 (196 ) 1,223 investment income ^(1)

Realized capital gains 287 440 (153 ) 713 278 435 (losses)

Change in unrealized netcapital gains and losses, 324 1,829 NM (1,050 ) 704 NM pre-tax

Total return on 2.6 % 4.8 % (2.2 ) 2.4 % 2.6 % (0.2 )investment portfolio

Total return oninvestment portfolio 6.8 % 5.9 % 0.9 (trailing twelve months)

(1)

Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.

* Allstate Investments $62.6 billion portfolio generated net investment income of $974 million in the second quarter of 2021, an increase of $754 million from the prior year quarter, driven by higher performance-based income. Market-based investment income contributed $355 million of investment income in the second quarter of 2021, an increase of $3 million, or 0.9%, compared to the prior year quarter as the impact of low reinvestment rates was mitigated by higher average assets under management and prepayment fee income. Performance-based investment income totaled $649 million in the second quarter of 2021, an increase of $759 million compared to the prior year quarter. The increase reflects higher private equity investment valuations and net gains from sales of real estate investments. Net realized capital gains were $287 million in the second quarter of 2021, compared to $440 million in the prior year quarter, primarily due to higher equity valuations and gains on sales of fixed income securities and real estate. Unrealized net capital gains increased $324 million from the first quarter of 2021 as lower interest rates resulted in higher fixed income valuations. Total return on the investment portfolio was 2.6% for the second quarter of 2021 and 6.8% over the trailing twelve-month period. * Discontinued Operations generated $196 million of income in the second quarter of 2021, primarily driven by higher performance-based income. In the first quarter of 2021, the assets and liabilities of Allstate Life Insurance Company and Allstate Life Insurance Company of New York were reclassified as held for sale with results presented as discontinued operations. This includes $37.0 billion of assets and $32.8 billion of liabilities as of June 30, 2021.

Proactive Capital Management

"Allstate's focus on current results and long-term value creation is designed to increase shareholder value," said Mario Rizzo, Chief Financial Officer. "The previously announced divestitures of the life and annuity businesses are on pace to close in 2021, and the acquisition of National General enhances our position in the independent agent channel and increases market share. We returned $807 million to shareholders through dividends and share repurchases in the quarter. The new $5 billion share repurchase program, which is expected to be completed by March 31, 2023, represents 13% of current market capitalization and will be initiated in the third quarter upon completion of the prior $3 billion program. Accelerating growth and increasing Property-Liability market share is also expected to increase shareholder value," concluded Rizzo.

Visit www.allstateinvestors.com for additional information about Allstate's results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, August 5. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains "forward-looking statements" that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like "plans," "seeks," "expects," "will," "should," "anticipates," "estimates," "intends," "believes," "likely," "targets" and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

^ Investment expenses are not allocated between market-based and(1) performance-based portfolios with the exception of investee level expenses.

* Allstate Investments $62.6 billion portfolio generated net investment income of $974 million in the second quarter of 2021, an increase of $754 million from the prior year quarter, driven by higher performance-based income. Market-based investment income contributed $355 million of investment income in the second quarter of 2021, an increase of $3 million, or 0.9%, compared to the prior year quarter as the impact of low reinvestment rates was mitigated by higher average assets under management and prepayment fee income. Performance-based investment income totaled $649 million in the second quarter of 2021, an increase of $759 million compared to the prior year quarter. The increase reflects higher private equity investment valuations and net gains from sales of real estate investments. Net realized capital gains were $287 million in the second quarter of 2021, compared to $440 million in the prior year quarter, primarily due to higher equity valuations and gains on sales of fixed income securities and real estate. Unrealized net capital gains increased $324 million from the first quarter of 2021 as lower interest rates resulted in higher fixed income valuations. Total return on the investment portfolio was 2.6% for the second quarter of 2021 and 6.8% over the trailing twelve-month period. * Discontinued Operations generated $196 million of income in the second quarter of 2021, primarily driven by higher performance-based income. In the first quarter of 2021, the assets and liabilities of Allstate Life Insurance Company and Allstate Life Insurance Company of New York were reclassified as held for sale with results presented as discontinued operations. This includes $37.0 billion of assets and $32.8 billion of liabilities as of June 30, 2021.

Proactive Capital Management

"Allstate's focus on current results and long-term value creation is designed to increase shareholder value," said Mario Rizzo, Chief Financial Officer. "The previously announced divestitures of the life and annuity businesses are on pace to close in 2021, and the acquisition of National General enhances our position in the independent agent channel and increases market share. We returned $807 million to shareholders through dividends and share repurchases in the quarter. The new $5 billion share repurchase program, which is expected to be completed by March 31, 2023, represents 13% of current market capitalization and will be initiated in the third quarter upon completion of the prior $3 billion program. Accelerating growth and increasing Property-Liability market share is also expected to increase shareholder value," concluded Rizzo.

Visit www.allstateinvestors.com for additional information about Allstate's results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, August 5. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains "forward-looking statements" that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like "plans," "seeks," "expects," "will," "should," "anticipates," "estimates," "intends," "believes," "likely," "targets" and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)



($ in millions, except par value data) June 30, December 2021 31, 2020

Assets

Investments

Fixed income securities, at fair value (amortized $ 42,825 $ 42,565 cost, net $41,344 and $40,034)

Equity securities, at fair value (cost $2,537 and 3,059 3,168 $2,740)

Mortgage loans, net 786 746

Limited partnership interests 7,073 4,563

Short-term, at fair value (amortized cost $5,516 and 5,516 6,807 $6,807)

Other, net 3,311 1,691

Total investments 62,570 59,540

Cash 656 311

Premium installment receivables, net 8,146 6,463

Deferred policy acquisition costs 4,374 3,774

Reinsurance and indemnification recoverables, net 9,497 7,215

Accrued investment income 350 371

Property and equipment, net 1,026 1,057

Goodwill 3,349 2,369

Other assets, net 5,706 2,756

Assets held for sale 36,969 42,131

Total assets $ 132,643 $ 125,987

Liabilities

Reserve for property and casualty insurance claims $ 31,637 $ 27,610 and claims expense

Reserve for future policy benefits 1,239 1,028

Contractholder funds 858 857

Unearned premiums 18,756 15,946

Claim payments outstanding 1,040 957

Deferred income taxes 758 382

Other liabilities and accrued expenses 9,392 7,840

Long-term debt 7,996 7,825

Liabilities held for sale 32,775 33,325

Total liabilities 104,451 95,770

Equity

Preferred stock and additional capital paid-in, $1par value, 25 million shares authorized, 81.0thousand shares issued and outstanding, $2,025aggregate liquidation preference; $.01 par value, 8 2,170 1,970 million shares authorized, 200.0 thousand sharesissued and outstanding, $200 aggregate liquidationpreference for $200 in 2021

Common stock, $.01 par value, 2.0 billion sharesauthorized and 900 million issued, 297 million and 9 9 304 million shares outstanding

Additional capital paid-in 3,668 3,498

Retained income 52,464 52,767

Treasury stock, at cost (603 million and 596 million (32,394 ) (31,331 )shares)

Accumulated other comprehensive income:

Other unrealized net capital gains and losses 2,726 3,860

Unrealized adjustment to DAC, DSI and insurance (562 ) (680 )reserves

Total unrealized net capital gains and losses 2,164 3,180

Unrealized foreign currency translation adjustments 24 (7 )

Unamortized pension and other postretirement prior 102 131 service credit

Total accumulated other comprehensive income 2,290 3,304

Total Allstate shareholders' equity 28,207 30,217

Noncontrolling interest (15 ) -

Total equity 28,192 30,217

Total liabilities and equity $ 132,643 $ 125,987

THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

($ in millions, except per share data)

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Revenues

Property and casualty insurance premiums

$

10,444

$

9,223

$

20,751

$

18,458

Accident and health insurance premiums and contract charges

447

263

902

545

Other revenue

494

257

1,049

522

Net investment income

974

220

1,682

466

Realized capital gains (losses)

287

440

713

278

Total revenues

12,646

10,403

25,097

20,269

Costs and expenses

Property and casualty insurance claims and claims expense

7,207

5,222

13,250

10,563

Shelter-in-Place Payback expense

29

738

29

948

Accident and health insurance policy benefits

244

123

477

264

Interest credited to contractholder funds

8

9

17

18

Amortization of deferred policy acquisition costs

1,545

1,344

3,068

2,709

Operating costs and expenses

1,683

1,394

3,414

2,732

Pension and other postretirement remeasurement (gains) losses

(134

)

73

(444

)

391

Restructuring and related charges

71

13

122

17

Amortization of purchased intangibles

105

29

158

57

Interest expense

91

79

177

160

Total costs and expenses

10,849

9,024

20,268

17,859

Income from operations before income tax expense

1,797

1,379

4,829

2,410

Income tax expense

362

273

988

467

Net income from continuing operations

1,435

1,106

3,841

1,943

Income (loss) from discontinued operations, net of tax

196

144

(3,597

)

(144

)

Net income

1,631

1,250

244

1,799

Less: Net income attributable to noncontrolling interest

6

-

-

-

Net income attributable to Allstate

1,625

1,250

244

1,799

Less: Preferred stock dividends

30

26

57

62

Net income applicable to common shareholders

$

1,595

$

1,224

$

187

$

1,737

Earnings per common share applicable to common shareholders

Basic

Continuing operations

$

4.68

$

3.44

$

12.59

$

5.96

Discontinued operations

0.66

0.46

(11.97

)

(0.46

)

Total

$

5.34

$

3.90

$

0.62

$

5.50

Diluted

Continuing operations

$

4.61

$

3.41

$

12.41

$

5.88

Discontinued operations

0.65

0.45

(11.80

)

(0.45

)

Total

$

5.26

$

3.86

$

0.61

$

5.43

Weighted average common shares - Basic

298.8

313.7

300.6

315.6

Weighted average common shares - Diluted

303.3

317.0

304.9

319.8

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 (loss) applicable to common shareholders, excluding:

* realized capital gains and losses 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, * business combination expenses and the amortization or impairment of purchased intangibles, * income or loss from discontinued operations, * 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, and * related income tax expense or benefit of these items.

Net income (loss) 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 services business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, business combination expenses and the amortization or impairment of purchased intangibles, income or loss from discontinued operations and adjustments for other significant non-recurring, infrequent or unusual items and related tax expense or benefit of these items. Realized capital gains and losses, and pension and other postretirement remeasurement gains and losses 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. Business combination expenses and income or loss from discontinued operations 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 (loss) 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 (loss) 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 (loss) applicable to common shareholders and does not reflect the overall profitability of our business.

The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income. Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income generally use a 21% effective tax rate.

THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)



($ in millions, except per Three months ended Six months endedshare data) June 30, June 30,

2021 2020 2021 2020



Revenues

Property and casualty $ 10,444 $ 9,223 $ 20,751 $ 18,458 insurance premiums

Accident and health insurance 447 263 902 545 premiums and contract charges

Other revenue 494 257 1,049 522

Net investment income 974 220 1,682 466

Realized capital gains 287 440 713 278 (losses)

Total revenues 12,646 10,403 25,097 20,269



Costs and expenses

Property and casualtyinsurance claims and claims 7,207 5,222 13,250 10,563 expense

Shelter-in-Place Payback 29 738 29 948 expense

Accident and health insurance 244 123 477 264 policy benefits

Interest credited to 8 9 17 18 contractholder funds

Amortization of deferred 1,545 1,344 3,068 2,709 policy acquisition costs

Operating costs and expenses 1,683 1,394 3,414 2,732

Pension and otherpostretirement remeasurement (134 ) 73 (444 ) 391 (gains) losses

Restructuring and related 71 13 122 17 charges

Amortization of purchased 105 29 158 57 intangibles

Interest expense 91 79 177 160

Total costs and expenses 10,849 9,024 20,268 17,859



Income from operations before 1,797 1,379 4,829 2,410 income tax expense



Income tax expense 362 273 988 467



Net income from continuing 1,435 1,106 3,841 1,943 operations



Income (loss) fromdiscontinued operations, net 196 144 (3,597 ) (144 )of tax



Net income 1,631 1,250 244 1,799



Less: Net income attributable 6 - - - to noncontrolling interest



Net income attributable to 1,625 1,250 244 1,799 Allstate



Less: Preferred stock 30 26 57 62 dividends



Net income applicable to $ 1,595 $ 1,224 $ 187 $ 1,737 common shareholders



Earnings per common shareapplicable to common shareholders

Basic

Continuing operations $ 4.68 $ 3.44 $ 12.59 $ 5.96

Discontinued operations 0.66 0.46 (11.97 ) (0.46 )

Total $ 5.34 $ 3.90 $ 0.62 $ 5.50



Diluted

Continuing operations $ 4.61 $ 3.41 $ 12.41 $ 5.88

Discontinued operations 0.65 0.45 (11.80 ) (0.45 )

Total $ 5.26 $ 3.86 $ 0.61 $ 5.43



Weighted average common shares 298.8 313.7 300.6 315.6 - Basic

Weighted average common shares 303.3 317.0 304.9 319.8 - Diluted

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 (loss) applicable to common shareholders, excluding:

* realized capital gains and losses 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, * business combination expenses and the amortization or impairment of purchased intangibles, * income or loss from discontinued operations, * 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, and * related income tax expense or benefit of these items.

Net income (loss) 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 services business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, business combination expenses and the amortization or impairment of purchased intangibles, income or loss from discontinued operations and adjustments for other significant non-recurring, infrequent or unusual items and related tax expense or benefit of these items. Realized capital gains and losses, and pension and other postretirement remeasurement gains and losses 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. Business combination expenses and income or loss from discontinued operations 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 (loss) 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 (loss) 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 (loss) applicable to common shareholders and does not reflect the overall profitability of our business.

The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income. Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income generally use a 21% effective tax rate.

($ in millions, except per share Three months ended June 30,data)

Consolidated Per diluted common share

2021 2020 2021 2020

Net income (loss) applicable to $ 1,595 $ 1,224 $ 5.26 $ 3.86 common shareholders

Realized capital (gains) losses (287 ) (440 ) (0.95 ) (1.39 )

Pension and other postretirement (134 ) 73 (0.44 ) 0.23 remeasurement (gains) losses

Reclassification of periodicsettlements and accruals on - - - - non-hedge derivative instruments

Business combination expenses andthe amortization of purchased 105 29 0.35 0.09 intangibles

Business combination fair value (6 ) - (0.02 ) - adjustment

(Income) loss from discontinued (493 ) (167 ) (1.63 ) (0.52 )operations

Income tax expense (benefit) 369 97 1.22 0.31

Adjusted net income * $ 1,149 $ 816 $ 3.79 $ 2.58



Six months ended June 30,

Consolidated Per diluted common share

2021 2020 2021 2020

Net income (loss) applicable to $ 187 $ 1,737 $ 0.61 $ 5.43 common shareholders

Realized capital (gains) losses (713 ) (278 ) (2.34 ) (0.87 )

Pension and other postretirement (444 ) 391 (1.46 ) 1.22 remeasurement (gains) losses

Reclassification of periodicsettlements and accruals on 1 - - - non-hedge derivative instruments

Business combination expenses andthe amortization of purchased 180 57 0.59 0.18 intangibles

Business combination fair value (6 ) - (0.02 ) - adjustment

(Income) loss from discontinued 3,670 203 12.04 0.63 operations

Income tax expense (benefit) 145 (92 ) 0.48 (0.28 )

Adjusted net income * $ 3,020 $ 2,018 $ 9.90 $ 6.31

Adjusted net income return on Allstate 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 Allstate 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 Allstate 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 above. We use average Allstate common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders' equity primarily applicable to the Allstate'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 (loss) applicable to common shareholders and return on Allstate 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 Allstate 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 Allstate common shareholders' equity from return on Allstate 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 Allstate common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders' equity and return on Allstate 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. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders' equity goal. Adjusted net income return on Allstate common shareholders' equity should not be considered a substitute for return on Allstate common shareholders' equity and does not reflect the overall profitability of our business.

The following tables reconcile return on Allstate common shareholders' equity and adjusted net income return on Allstate common shareholders' equity.

($ in millions) For the twelve months ended June 30,

2021 2020

Return on Allstate common shareholders' equity

Numerator:

Net income applicable to common shareholders $ 3,911 $ 4,333

Denominator:

Beginning Allstate common shareholders' $ 25,016 $ 22,546 equity ^(1)

Ending Allstate common shareholders' equity ^ 26,037 25,016 (1)

Average Allstate common shareholders' equity $ 25,527 $ 23,781

Return on Allstate common shareholders' 15.3 % 18.2 %equity

($ in millions)

For the twelve months ended June 30,

2021

2020

Adjusted net income return on Allstate common shareholders' equity

Numerator:

Adjusted net income *

$

5,512

$

3,887

Denominator:

Beginning Allstate common shareholders' equity (1)

$

25,016

$

22,546

Less: Unrealized net capital gains and losses

2,602

1,654

Adjusted beginning Allstate common shareholders' equity

22,414

20,892

Ending Allstate common shareholders' equity (1)

26,037

25,016

Less: Unrealized net capital gains and losses

2,164

2,602

Adjusted ending Allstate common shareholders' equity

23,873

22,414

Average adjusted Allstate common shareholders' equity

$

23,144

$

21,653

Adjusted net income return on Allstate common shareholders' equity *

23.8

%

18.0

%

_____________

($ in millions) For the twelve months ended June 30,

2021 2020

Adjusted net income return on Allstate common shareholders' equity

Numerator:

Adjusted net income * $ 5,512 $ 3,887



Denominator:

Beginning Allstate common shareholders' equity ^ $ 25,016 $ 22,546 (1)

Less: Unrealized net capital gains and losses 2,602 1,654

Adjusted beginning Allstate common shareholders' 22,414 20,892 equity



Ending Allstate common shareholders' equity ^(1) 26,037 25,016

Less: Unrealized net capital gains and losses 2,164 2,602

Adjusted ending Allstate common shareholders' 23,873 22,414 equity

Average adjusted Allstate common shareholders' $ 23,144 $ 21,653 equity

Adjusted net income return on Allstate common 23.8 % 18.0 %shareholders' equity *

_____________

^ Excludes equity related to preferred stock of $2,170 million as of June(1) 30, 2021, $1,970 million as of June 30, 2020 and $1,930 million as of June 30, 2019.

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles ("underlying combined ratio") is a non-GAAP ratio, 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-catastrophe reserve 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-Liability business 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 net 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.

The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio.

Property-Liability Three months ended Six months ended June 30, June 30,

2021 2020 2021 2020

Combined ratio 95.7 89.8 89.5 87.3

Effect of catastrophe losses (9.5 ) (13.4 ) (7.7 ) (7.9 )

Effect of prior year non-catastrophe 0.2 0.4 0.1 0.1 reserve reestimates

Effect of amortization of purchased (0.7 ) - (0.5 ) - intangibles

Underlying combined ratio* 85.7 76.8 81.4 79.5



Effect of prior year catastrophe 0.4 0.3 (1.0 ) - reserve reestimates

Allstate Protection - Auto Insurance

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Combined ratio

94.3

83.8

87.4

86.6

Effect of catastrophe losses

(2.2

)

(2.2

)

(1.3

)

(1.2

)

Effect of prior year non-catastrophe reserve reestimates

0.4

0.8

0.3

0.2

Effect of amortization of purchased intangibles

(0.7

)

-

(0.4

)

-

Underlying combined ratio*

91.8

82.4

86.0

85.6

Effect of prior year catastrophe reserve reestimates

(0.1

)

(0.1

)

(0.2

)

(0.1

)

Allstate Protection - Auto Insurance Three months ended Six months ended June 30, June 30,

2021 2020 2021 2020

Combined ratio 94.3 83.8 87.4 86.6

Effect of catastrophe losses (2.2 ) (2.2 ) (1.3 ) (1.2 )

Effect of prior year non-catastrophe 0.4 0.8 0.3 0.2 reserve reestimates

Effect of amortization of purchased (0.7 ) - (0.4 ) - intangibles

Underlying combined ratio* 91.8 82.4 86.0 85.6



Effect of prior year catastrophe (0.1 ) (0.1 ) (0.2 ) (0.1 )reserve reestimates

Allstate Protection - Homeowners Insurance

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Combined ratio

100.3

106.8

94.6

89.2

Effect of catastrophe losses

(30.3

)

(46.4

)

(25.5

)

(27.8

)

Effect of prior year non-catastrophe reserve reestimates

0.3

0.2

-

0.1

Effect of amortization of purchased intangibles

(0.8

)

-

(0.5

)

-

Underlying combined ratio*

69.5

60.6

68.6

61.5

Effect of prior year catastrophe reserve reestimates

1.5

1.3

(3.6

)

0.5

View source version on businesswire.com: https://www.businesswire.com/news/home/20210804006160/en/

CONTACT: Rachel Hill Media Relations (847) 402-5600

CONTACT: Mark Nogal Investor Relations (847) 402-2800