UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 20, 2023
THE ALLSTATE CORP ORATION
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (847 ) 402-5000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||
| Common Stock, par value $0.01 per share | ALL | New York Stock Exchange Chicago Stock Exchange | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____
Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition
The Registrant’s press release dated July 20, 2023, announcing estimated catastrophe losses for June and second quarter 2023, implemented rates and prior year reserve reestimates and the Registrant’s implemented rate exhibit for June 2023 are posted on allstateinvestors.com and are attached hereto as Exhibit 99.1 and 99.2 which are incorporated herein by reference. These exhibits are furnished and not filed, pursuant to Instruction B.2 of Form 8-K.
Section 9 – Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL). | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE ALLSTATE CORPORATION | ||||||||||||||
| (Registrant) | ||||||||||||||
| By: | /s/ John C. Pintozzi | |||||||||||||
| Name: John C. Pintozzi | ||||||||||||||
| Title: Senior Vice President, Controller and Chief Accounting Officer | ||||||||||||||
| Date: | July 20, 2023 | |||||||||||||
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Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE
Contacts:
| Al Scott | Brent Vandermause | |||||||
| Media Relations | Investor Relations | |||||||
| (847) 402-5600 | (847) 402-2800 | |||||||
Allstate Announces June and Second Quarter 2023 Catastrophe Losses, Implemented Rates and Prior Year Reserve Reestimates
NORTHBROOK, Ill., July 20, 2023 – The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of June of $1.01 billion or $799 million, after-tax.
June month catastrophe losses include 18 events estimated at $1.13 billion, with approximately 60% of the losses related to four wind and hail events, partially offset by favorable reserve reestimates for prior events. Total catastrophe losses for the second quarter were $2.70 billion, pre-tax.
Unfavorable prior year reserve reestimates, excluding catastrophes, totaled $181 million in the second quarter with approximately $148 million related to National General brand, primarily driven by personal auto injury coverages, and approximately $31 million related to litigation activity in the state of Florida.
During the month of June, the Allstate brand implemented auto rate increases of 11.6% across 12 locations, resulting in total brand premium impact of 2.6%.
“Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability. Beginning with this month’s release, we are expanding reporting transparency by disclosing implemented homeowners insurance rates monthly. Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 7.5%, which are expected to raise annualized written premiums by approximately $1.95 billion and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 7.4%, which are expected to raise annualized written premiums by approximately $754 million,” said Jess Merten, Chief Financial Officer of The Allstate Corporation. Our implemented rate exhibit for auto and homeowners insurance has been posted on allstateinvestors.com.
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.
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Exhibit 99.2 The Allstate Corporation Allstate Protection Impact of Net Rate Changes Implemented on Premiums Written For the month ended June 30, 2023 Three months ended June 30, 2023 Number of locations (1) Total brand (%) (2) (3) Location specific (%) (4) Number of locations (1) Total brand (%) (2) (3) Location specific (%) (4) Allstate brand Auto 12 2.6 11.6 34 5.8 10.0 Homeowners (5) 6 0.6 16.5 20 2.5 12.3 National General Auto 14 1.8 8.8 27 3.6 13.9 Homeowners (5) 7 1.0 19.9 10 3.8 23.5 Three months ended March 31, 2023 Three months ended December 31, 2022 Number of locations (1) Total brand (%) (2) (3) Location specific (%) (4) Number of locations (1) Total brand (%) (2) (3) Location specific (%) (4) Allstate brand Auto 28 1.7 8.4 38 6.1 11.2 Homeowners (5) 18 4.9 13.7 16 2.1 11.3 National General Auto 28 1.9 5.6 26 4.3 8.5 Homeowners (5) 7 1.5 12.2 16 4.4 15.7 (1) Refers to the number of U.S. states, the District of Columbia or Canadian provinces where rate changes have been implemented. Allstate brand operates in 50 states, the District of Columbia, and 5 Canadian provinces. National General operates in 50 states and the District of Columbia. (2) Represents the impact in the locations where rate changes were implemented during the period as a percentage of total brand prior year-end premiums written. (3) Allstate brand implemented auto insurance rate increases totaled $665 million and $1.49 billion in the month and three months ended June 30, 2023, respectively, after implementing $454 million and $1.48 billion of rate increases in the first quarter of 2023 and fourth quarter of 2022, respectively. (4) Represents the impact in the locations where rate changes were implemented during the period as a percentage of its respective total prior year-end premiums written in those same locations. (5) Excludes the impact to average premium from inflation in insured home replacement costs and other aging factor adjustments.