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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): August 4, 2020
THE ALLSTATE CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
 
1-11840
 
36-3871531
(State or other
jurisdiction of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 2775 Sanders Road, Northbrook, Illinois    60062
(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:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053
ALL.PR.B
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G
ALL PR G
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H
ALL PR H
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I
ALL PR I
New York 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. ☐





1


Section 2 – Financial Information
 
Item 2.02.                             Results of Operations and Financial Condition.
 
The Registrant’s press release dated August 4, 2020, announcing its financial results for the second quarter of 2020, and the Registrant’s second quarter 2020 investor supplement are furnished as Exhibits 99.1 and 99.2, respectively, to this report.  The information contained in the press release and the investor supplement 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
 
99.1                                                Registrant’s press release dated August 4, 2020
99.2                                             Second quarter 2020 Investor Supplement of The Allstate Corporation
104     Cover Page Interactive Data File (formatted as inline XBRL).






























2





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: August 4, 2020

3
Exhibit

Exhibit 99.1

https://cdn.kscope.io/46bdbb07be05ec8761d3e046d733662c-earningsreleaseimagea33.jpg
FOR IMMEDIATE RELEASE

Contacts:    
Greg Burns                Mark Nogal                
Media Relations          Investor Relations            
(847) 402-5600                (847) 402-2800                

Allstate Quickly Adapts to Pandemic and Delivers Excellent Operating Results

NORTHBROOK, Ill., August 4, 2020 – The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2020.
The Allstate Corporation Consolidated Highlights
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions, except per share data and ratios)
2020
2019
% / pts
Change
 
2020
2019
% / pts
Change
Consolidated revenues
$
11,197

$
11,144

0.5

 
$
21,273

$
22,134

(3.9
)
Net income applicable to common shareholders
1,224

821

49.1

 
1,737

2,082

(16.6
)
per diluted common share
3.86

2.44

58.2

 
5.43

6.17

(12.0
)
Adjusted net income*
780

735

6.1

 
1,920

1,511

27.1

per diluted common share*
2.46

2.18

12.8

 
6.00

4.48

33.9

Return on common shareholders’ equity (trailing twelve months)
 
 
 
 
 
Net income applicable to common shareholders
 
 


 
18.2
%
11.2
%
7.0

Adjusted net income*
 
 


 
17.9
%
13.5
%
4.4

Book value per common share
 
 


 
79.21

67.28

17.7

Property-Liability combined ratio
 
 
 
 
 
 
 
Recorded
89.8

95.8

(6.0
)
 
87.3

93.8

(6.5
)
Underlying combined ratio*
76.8

84.4

(7.6
)
 
79.5

84.3

(4.8
)
Property-Liability insurance premiums earned
8,863

8,681

2.1

 
17,744

17,188

3.2

Catastrophe losses
1,186

1,072

10.6

 
1,397

1,752

(20.3
)
Shelter-in-Place Payback expense
738

—

NA

 
948

—

NA

Total policies in force (in thousands)
 
 


 
167,540

130,131

28.7

*
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.
NA = not applicable

“Allstate’s strong results reflect a resilient strategy and rapid adaptation to the coronavirus pandemic,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation. “Customer satisfaction increased as we maintained high service levels and helped customers, including almost $1.0 billion in Shelter-in-Place Payback, payment deferrals and extended coverage. The Allstate brand personal property-liability Transformative Growth Plan is gaining momentum with broader customer access and continued expense ratio reductions, excluding the impacts of customer-facing coronavirus programs. Allstate Protection Plans continued its rapid growth through major retailers with policies in force increasing 43% from the prior year to over 120 million. The independent agent personal property-liability business’ strategic position will be significantly improved with the pending acquisition of National General Holdings Corp., which will be accretive to earnings.”



1

“Financial results for the quarter were excellent, with revenues of $11.2 billion generating net income of $1.2 billion and adjusted net income* of $2.46 per common share. The Property-Liability combined ratio was 89.8 in the second quarter, which more than offset the negative pandemic impact on reported investment income and life mortality. The total return on the $89.6 billion investment portfolio was 5.0% in the quarter and 5.7% over the last 12 months. Allstate Protection Plans’ adjusted net income of $35 million in the quarter was 84% higher than the prior year quarter. Shareholders also benefited from the 17.9% adjusted net income return on equity* with $563 million of dividends and share repurchases in the quarter,” concluded Wilson.


Second Quarter 2020 Results

•
Total revenue of $11.2 billion in the second quarter of 2020 increased 0.5% compared to the prior year quarter, primarily driven by net realized capital gains of $704 million, compared to $324 million in the second quarter of 2019 and a 2.1% increase in Property-Liability insurance premiums earned. Net investment income decreased 56.6% in the second quarter on lower performance-based portfolio results.

•
Net income applicable to common shareholders was $1.22 billion, or $3.86 per diluted share, in the second quarter of 2020, compared to net income of $821 million, or $2.44 per diluted share, in the second quarter of 2019, primarily due to increased underwriting income and higher net realized capital gains. Adjusted net income* of $780 million, or $2.46 per diluted share, was 6.1% above the prior year quarter, primarily due to improved underlying loss experience in auto insurance, partially offset by the Shelter-in-Place Payback expense, lower net investment income and higher catastrophe losses.

Property-Liability Results
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions, except ratios)
2020
2019
% / pts
Change
 
2020
2019
% / pts
Change
Premiums written
9,172

9,043

1.4
%
 
17,764

17,370

2.3
%
Underwriting income
904

367

146.3

 
2,249

1,067

110.8

 
 
 
 
 
 
 
 
Recorded Combined Ratio
89.8

95.8

(6.0
)
 
87.3

93.8

(6.5
)
Allstate Brand Auto
83.9

92.8

(8.9
)
 
86.0

91.6

(5.6
)
Allstate Brand Homeowners
106.1

104.3

1.8

 
88.6

98.3

(9.7
)
Esurance Brand
86.2

100.6

(14.4
)
 
91.3

100.0

(8.7
)
Encompass Brand
97.6

97.2

0.4

 
96.1

99.0

(2.9
)
 
 
 
 
 
 
 
 
Underlying Combined Ratio*
76.8

84.4

(7.6
)
 
79.5

84.3

(4.8
)
Allstate Brand Auto
82.5

91.1

(8.6
)
 
85.1

90.7

(5.6
)
Allstate Brand Homeowners
60.1

62.1

(2.0
)
 
61.0

62.9

(1.9
)
Esurance Brand
82.4

96.2

(13.8
)
 
89.0

96.8

(7.8
)
Encompass Brand
74.7

89.8

(15.1
)
 
82.3

89.2

(6.9
)

•
Property-Liability written premium of $9.17 billion increased 1.4% in the second quarter of 2020 compared to the prior year, driven by premium and policy growth in Allstate brand personal lines. The recorded combined ratio of 89.8 in the second quarter of 2020 generated underwriting income of $904 million, an increase of $537 million compared to the prior year quarter, primarily due to a decline in auto losses from fewer accidents and increased premiums earned, partially offset by the Shelter-in-Place Payback expense and higher catastrophe losses.

◦
In response to the coronavirus pandemic, Allstate extended the Shelter-in-Place Payback to auto insurance customers through June 30, 2020, recording $738 million of the total $948 million expense in the second quarter of 2020. Allstate also extended auto insurance coverage to customers using their personal vehicles for commercial purposes and offered auto and homeowners insurance customers more flexible payment options, including the option to delay payments without penalty.

◦
The underlying combined ratio* of 76.8 for the second quarter of 2020 was 7.6 points below the prior year quarter, reflecting higher premiums earned and lower non-catastrophe losses. This was partially offset by the Shelter-in-Place Payback and increased bad debt from billing flexibility options, which increased the

2

second quarter expense ratio by 8.3 points and 0.5 points, respectively. Excluding these impacts, the expense ratio improved by 0.5 points to 23.0, compared to the prior year quarter.

◦
Allstate brand auto insurance net written premium grew 1.8%, and policies in force increased 0.8% in the second quarter of 2020 compared to the prior year quarter. The recorded combined ratio of 83.9 in the second quarter of 2020 was 8.9 points below the prior year quarter, and the underlying combined ratio* of 82.5 in the quarter was 8.6 points below the second quarter of 2019, primarily due to higher premiums earned and lower loss costs from reduced miles driven. This was partially offset by an 11.9-point impact from the Shelter-in-Place Payback and a 0.5-point impact from higher bad debt expense related to special payment plans.

◦
Allstate brand homeowners insurance net written premium grew 3.3%, and policies in force increased 1.0% in the second quarter of 2020 compared to the prior year quarter. The recorded combined ratio of 106.1 in the second quarter of 2020 was 1.8 points above the second quarter of 2019, primarily driven by higher catastrophe losses. The underlying combined ratio* of 60.1 was 2.0 points better than the prior year quarter, primarily due to lower underlying loss and expense ratios.

◦
Esurance brand net written premium increased 3.0% in the second quarter of 2020 compared to the prior year quarter as higher average premiums were partially offset by a decline in auto policies in force. The recorded combined ratio of 86.2 in the second quarter of 2020 was 14.4 points below the prior year quarter due to lower auto losses from fewer accidents, partially offset by the Shelter-in-Place Payback and higher bad debt expense. The underlying combined ratio* of 82.4 was 13.8 points lower than the second quarter of 2019.

◦
Encompass brand net written premium decreased 5.4% in the second quarter of 2020 compared to the prior year quarter driven by a decline in policies in force, partially offset by higher average premiums. The recorded combined ratio of 97.6 in the second quarter of 2020 was 0.4 points higher than the prior year quarter, primarily driven by higher catastrophe losses. The underlying combined ratio* of 74.7 in the second quarter was 15.1 points lower than the prior year quarter, driven by lower auto insurance losses from fewer accidents, partially offset by the Shelter-in-Place Payback.

Allstate Investment Results
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions, except ratios)
2020
2019
% / pts
Change
 
2020
2019
% / pts
Change
Net investment income
$
409

$
942

(56.6
)
 
$
830

$
1,590

(47.8
)
Market-based investment income(1)
654

731

(10.5
)
 
1,328

1,424

(6.7
)
Performance-based investment (loss) income(1)
(211
)
261

NM

 
(419
)
267

NM

Realized capital gains (losses)
704

324

117.3

 
242

986

(75.5
)
Change in unrealized net capital gains and losses, pre-tax
2,997

1,104

171.5

 
1,160

2,439

(52.4
)
Total return on investment portfolio
5.0
%
2.8
%
2.2

 
2.6
%
6.1
%
(3.5
)
Total return on investment portfolio (trailing twelve months)
 
 


 
5.7
%
7.0
%
(1.3
)
(1) 
Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.
NM = not meaningful

•
Allstate Investments $89.6 billion portfolio generated net investment income of $409 million in the second quarter of 2020, a decrease of $533 million from the prior year quarter, primarily due to lower performance-based results.

◦
Market-based investments contributed $654 million of investment income in the second quarter of 2020, a decrease of $77 million, or 10.5%, compared to the prior year quarter, due to lower interest-bearing portfolio yields.

◦
Performance-based investment losses were $211 million in the second quarter of 2020, compared to income of $261 million in the prior year quarter. Losses of $419 million year-to-date include losses

3

recorded in the first quarter of 2020 that normally would have been recognized in the second quarter of 2020.

◦
Net realized capital gains were $704 million in the second quarter of 2020, compared to $324 million in the prior year quarter, driven mainly by higher equity valuations.

◦
Unrealized net capital gains increased $3.0 billion from the first quarter of 2020, as fixed income valuations increased, reflecting tighter credit spreads.

◦
Total return on the investment portfolio was 5.0% for the quarter, reflecting higher valuations for interest-bearing and equity investments​.

Allstate Life, Benefits and Annuities Results
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
2020
2019
% Change
 
2020
2019
% Change
Premiums and Contract Charges
 
 
 
 
 
 
 
Allstate Life
$
339

$
333

1.8
 %
 
$
672

$
670

0.3
 %
Allstate Benefits
263

284

(7.4
)
 
545

572

(4.7
)
Allstate Annuities
2

4

(50.0
)
 
4

7

(42.9
)
Adjusted Net Income (Loss)
 
 


 
 
 


Allstate Life
$
72

$
68

5.9
 %
 
$
152

$
141

7.8
 %
Allstate Benefits
5

37

(86.5
)
 
29

68

(57.4
)
Allstate Annuities
(111
)
52

NM

 
(250
)
27

NM


•
Allstate Life adjusted net income was $72 million in the second quarter of 2020, a $4 million increase from the prior year quarter, driven by lower operating expenses partially offset by higher contract benefits due to coronavirus death claims.

•
Allstate Benefits premium declined 7.4% compared to the prior year quarter, primarily driven by the non-renewal of a large underperforming account in the fourth quarter of 2019, lower sales and economic impacts from the coronavirus. Adjusted net income of $5 million in the second quarter of 2020 was $32 million lower than the prior year quarter, driven by a $32 million, after-tax, write-off of capitalized software costs associated with a billing system.

•
Allstate Annuities adjusted net loss was $111 million in the second quarter of 2020, compared to adjusted net income of $52 million in the prior year quarter, primarily due to lower performance-based investment results.

Service Businesses Results
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
2020
2019
% / $
Change
 
2020
2019
% / $
Change
Total Revenues
$
476

$
405

17.5
 %
 
$
906

$
797

13.7
 %
Allstate Protection Plans
241

170

41.8

 
441

334

32.0

Allstate Dealer Services
128

114

12.3

 
240

221

8.6

Allstate Roadside Services
53

73

(27.4
)
 
113

146

(22.6
)
Arity
26

25

4.0

 
56

49

14.3

Allstate Identity Protection
28

23

21.7

 
56

47

19.1

Adjusted Net Income (Loss)
$
38

$
16

$
22

 
$
75

$
27

$
48

Allstate Protection Plans
35

19

16

 
69

33

36

Allstate Dealer Services
8

7

1

 
15

13

2

Allstate Roadside Services
2

(3
)
5

 
4

(9
)
13

Arity
(3
)
(1
)
(2
)
 
(6
)
(3
)
(3
)
Allstate Identity Protection
(4
)
(6
)
2

 
(7
)
(7
)
—



4

•
Service Businesses policies in force grew to 127.3 million, and revenues increased to $476 million in the second quarter of 2020, 17.5% higher than the prior year quarter. Adjusted net income of $38 million increased by $22 million compared to the prior year quarter, primarily due to growth at Allstate Protection Plans and improved results at Allstate Roadside Services.
◦
Allstate Protection Plans revenue of $241 million increased $71 million (41.8%) due to policy growth of 36.3 million (43.3%) compared to the prior year quarter. Adjusted net income of $35 million in the second quarter of 2020 was $16 million higher than the prior year quarter due to increased revenue and improved loss experience.

◦
Allstate Dealer Services revenue of $128 million was 12.3% higher than the second quarter of 2019. Adjusted net income of $8 million was $1 million higher than the prior year quarter, reflecting lower losses from fewer claims.

◦
Allstate Roadside Services revenue of $53 million in the second quarter of 2020 decreased 27.4% compared to the second quarter of 2019, primarily reflecting declines in wholesale business. Adjusted net income of $2 million in the second quarter was $5 million higher than the prior year quarter, driven by improved loss experience and lower operating expenses.

◦
Arity revenue was $26 million in the second quarter of 2020, primarily from contracts with affiliates. The adjusted net loss of $3 million in the quarter includes investments in capabilities and growth.

◦
Allstate Identity Protection had revenue of $28 million and an adjusted net loss of $4 million in the second quarter of 2020 related to growth and integration expenses. Policies in force of 2.3 million reflect an increase of 1.1 million from the prior year quarter and include subscribers receiving free service for the remainder of 2020.


Proactive Capital Management

“Allstate’s strong capital position and earnings power enable us to invest in profitable growth and provide ongoing cash returns to our shareholders,” said Mario Rizzo, Chief Financial Officer. “In the second quarter, we returned $563 million in cash to shareholders through $172 million in common shareholder dividends and the repurchase of $391 million in common shares. We also announced an agreement to acquire National General Holdings Corp., which will enhance our strategic position in the independent agent channel. The acquisition will not impact our $3 billion share repurchase program, which is expected to be completed by the end of 2021.”




Visit www.allstateinvestors.com to view additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be held at 9 a.m. ET on Wednesday, 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.

5

THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
 
 
 
 
($ in millions, except par value data)

June 30, 2020
 
December 31, 2019
Assets
 
 
 
Investments:
 
 
 
Fixed income securities, at fair value (amortized cost, net $60,534 and $56,293)
$
64,448

 
$
59,044

Equity securities, at fair value (cost $3,817 and $6,568)
4,212

 
8,162

Mortgage loans, net
4,774

 
4,817

Limited partnership interests
6,941

 
8,078

Short-term, at fair value (amortized cost $5,343 and $4,256)
5,344

 
4,256

Other, net
3,918

 
4,005

Total investments
89,637

 
88,362

Cash
547

 
338

Premium installment receivables, net
6,367

 
6,472

Deferred policy acquisition costs
4,683

 
4,699

Reinsurance and indemnification recoverables, net
9,290

 
9,211

Accrued investment income
605

 
600

Property and equipment, net
1,100

 
1,145

Goodwill
2,544

 
2,545

Other assets, net
3,587

 
3,534

Separate Accounts
2,906

 
3,044

Total assets
$
121,266

 
$
119,950

Liabilities
 
 
 
Reserve for property and casualty insurance claims and claims expense
$
27,426

 
$
27,712

Reserve for life-contingent contract benefits
12,471

 
12,300

Contractholder funds
17,396

 
17,692

Unearned premiums
15,448

 
15,343

Claim payments outstanding
882

 
929

Deferred income taxes
842

 
1,154

Other liabilities and accrued expenses
10,275

 
9,147

Long-term debt
6,634

 
6,631

Separate Accounts
2,906

 
3,044

Total liabilities
94,280

 
93,952

Shareholders’ equity
 
 
 
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 81.0 thousand and 92.5 thousand shares issued and outstanding, $2,025 and $2,313 aggregate liquidation preference
1,970

 
2,248

Common stock, $.01 par value, 3.0 billion shares authorized and 900 million issued, 313 million and 319 million shares outstanding
9

 
9

Additional capital paid-in
3,541

 
3,463

Retained income
49,380

 
48,074

Treasury stock, at cost (587 million and 581 million shares)
(30,542
)
 
(29,746
)
Accumulated other comprehensive income:
 
 
 
Unrealized net capital gains and losses on fixed income securities with credit losses
(1
)
 
70

Other unrealized net capital gains and losses
3,079

 
2,094

Unrealized adjustment to DAC, DSI and insurance reserves
(476
)
 
(277
)
Total unrealized net capital gains and losses
2,602

 
1,887

Unrealized foreign currency translation adjustments
(89
)
 
(59
)
Unamortized pension and other postretirement prior service credit
115

 
122

Total accumulated other comprehensive income
2,628

 
1,950

Total shareholders’ equity
26,986

 
25,998

Total liabilities and shareholders’ equity
$
121,266

 
$
119,950





6

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,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
Property and casualty insurance premiums
$
9,223

 
$
8,986

 
$
18,458

 
$
17,788

Life premiums and contract charges
604

 
621

 
1,221

 
1,249

Other revenue
257

 
271

 
522

 
521

Net investment income
409

 
942

 
830

 
1,590

Realized capital gains (losses)
704

 
324

 
242

 
986

Total revenues
11,197

 
11,144

 
21,273

 
22,134

 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
Property and casualty insurance claims and claims expense
5,222

 
6,356

 
10,563

 
12,176

Shelter-in-Place Payback expense
738

 
—

 
948

 
—

Life contract benefits
497

 
511

 
998

 
1,008

Interest credited to contractholder funds
200

 
156

 
332

 
318

Amortization of deferred policy acquisition costs
1,349

 
1,362

 
2,750

 
2,726

Operating costs and expenses
1,451

 
1,380

 
2,850

 
2,760

Pension and other postretirement remeasurement (gains) losses
73

 
125

 
391

 
140

Restructuring and related charges
14

 
9

 
19

 
27

Amortization of purchased intangibles
29

 
32

 
57

 
64

Impairment of purchased intangibles
—

 
55

 
—

 
55

Interest expense
79

 
82

 
160

 
165

Total costs and expenses
9,652

 
10,068

 
19,068

 
19,439

 
 
 
 
 
 
 
 
Gain on disposition of operations
1

 
2

 
2

 
3

 
 
 
 
 
 
 
 
Income from operations before income tax expense
1,546

 
1,078

 
2,207

 
2,698

 
 
 
 
 
 
 
 
Income tax expense
296

 
227

 
408

 
555

 
 
 
 
 
 
 
 
Net income
1,250

 
851

 
1,799

 
2,143

 
 
 
 
 
 
 
 
Preferred stock dividends
26

 
30

 
62

 
61

 
 
 
 
 
 
 
 
Net income applicable to common shareholders
$
1,224

 
$
821

 
$
1,737

 
$
2,082

 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common shareholders per common share – Basic
$
3.90

 
$
2.47

 
$
5.50

 
$
6.27

 
 
 
 
 
 
 
 
Weighted average common shares – Basic
313.7

 
332.0

 
315.6

 
332.3

 
 
 
 
 
 
 
 
Net income applicable to common shareholders per common share – Diluted
$
3.86

 
$
2.44

 
$
5.43

 
$
6.17

 
 
 
 
 
 
 
 
Weighted average common shares – Diluted
317.0

 
336.9

 
319.8

 
337.2


7

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 services 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.

8

The following tables reconcile net income applicable to common shareholders and adjusted net income. Taxes on adjustments to reconcile net income applicable to common shareholders and adjusted net income generally use a 21% effective tax rate and are reported net of income taxes as the reconciling adjustment.
($ in millions, except per share data)
Three months ended June 30,
 
Consolidated
 
Per diluted common share
 
2020
 
2019
 
2020
 
2019
Net income applicable to common shareholders
$
1,224

 
$
821

 
$
3.86

 
$
2.44

Realized capital (gains) losses, after-tax
(554
)
 
(256
)
 
(1.75
)
 
(0.76
)
Pension and other postretirement remeasurement (gains) losses, after-tax
58

 
99

 
0.18

 
0.29

Valuation changes on embedded derivatives not hedged, after-tax
41

 
2

 
0.13

 
—

DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax
(11
)
 
1

 
(0.03
)
 
—

Business combination expenses and the amortization of purchased intangibles, after-tax
23

 
26

 
0.07

 
0.08

Impairment of purchased intangibles, after-tax
—

 
43

 
—

 
0.13

Gain on disposition of operations, after-tax
(1
)
 
(1
)
 
—

 
—

Adjusted net income*
$
780

 
$
735

 
$
2.46

 
$
2.18

 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
Consolidated
 
Per diluted common share
 
2020
 
2019
 
2020
 
2019
Net income applicable to common shareholders
$
1,737

 
$
2,082

 
$
5.43

 
$
6.17

Realized capital (gains) losses, after-tax
(188
)
 
(780
)
 
(0.59
)
 
(2.31
)
Pension and other postretirement remeasurement (gains) losses, after-tax
309

 
110

 
0.97

 
0.33

Valuation changes on embedded derivatives not hedged, after-tax
27

 
5

 
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
(8
)
 
3

 
(0.02
)
 
0.01

Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax
—

 
(1
)
 
—

 
—

Business combination expenses and the amortization of purchased intangibles, after-tax
45

 
51

 
0.14

 
0.15

Impairment of purchased intangibles, after-tax
—

 
43

 
—

 
0.13

Gain on disposition of operations, after-tax
(2
)
 
(2
)
 
(0.01
)
 
(0.01
)
Adjusted net income*
$
1,920

 
$
1,511

 
$
6.00

 
$
4.48


9

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 above. 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. We also provide it to facilitate a comparison to our long-term adjusted net income return on common shareholders’ equity goal. 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.
The following tables reconcile return on common shareholders’ equity and adjusted net income return on common shareholders’ equity.
($ in millions)
For the twelve months ended June 30,
 
2020
 
2019
Return on common shareholders’ equity
 
 
 
Numerator:
 
 
 
Net income applicable to common shareholders
$
4,333

 
$
2,439

Denominator:
 
 
 
Beginning common shareholders’ equity (1)
$
22,546

 
$
20,819

Ending common shareholders’ equity (1)
25,016

 
22,546

Average common shareholders’ equity
$
23,781

 
$
21,683

Return on common shareholders’ equity
18.2
%
 
11.2
%

($ in millions)
For the twelve months ended June 30,
 
2020
 
2019
Adjusted net income return on common shareholders’ equity
 
 
 
Numerator:
 
 
 
Adjusted net income *
$
3,886

 
$
2,822

 
 
 
 
Denominator:
 
 
 
Beginning common shareholders’ equity (1)
$
22,546

 
$
20,819

Less: Unrealized net capital gains and losses
1,654

 
54

Adjusted beginning common shareholders’ equity
20,892

 
20,765

 
 
 
 
Ending common shareholders’ equity (1)
25,016

 
22,546

Less: Unrealized net capital gains and losses
2,602

 
1,654

Adjusted ending common shareholders’ equity
22,414

 
20,892

Average adjusted common shareholders’ equity
$
21,653

 
$
20,829

Adjusted net income return on common shareholders’ equity *
17.9
%
 
13.5
%
_____________
(1) Excludes equity related to preferred stock of $1,970 million as of June 30, 2020, $1,930 million as of June 30, 2019 and $2,303 million as of June 30, 2018.



10


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 June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
89.8

 
95.8

 
87.3

 
93.8

Effect of catastrophe losses
(13.4
)
 
(12.3
)
 
(7.9
)
 
(10.2
)
Effect of prior year non-catastrophe reserve reestimates
0.4

 
0.9

 
0.1

 
0.7

Underlying combined ratio*
76.8

 
84.4

 
79.5

 
84.3

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
0.3

 
—

 
—

 
0.3

Allstate brand - Total
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
89.7

 
95.4

 
86.8

 
93.2

Effect of catastrophe losses
(13.7
)
 
(13.0
)
 
(8.1
)
 
(10.7
)
Effect of prior year non-catastrophe reserve reestimates
0.5

 
1.0

 
0.1

 
0.8

Underlying combined ratio*
76.5

 
83.4

 
78.8

 
83.3

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
0.3

 
—

 
0.1

 
0.3

Allstate brand - Auto Insurance
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
83.9

 
92.8

 
86.0

 
91.6

Effect of catastrophe losses
(2.2
)
 
(3.3
)
 
(1.2
)
 
(2.3
)
Effect of prior year non-catastrophe reserve reestimates
0.8

 
1.6

 
0.3

 
1.4

Underlying combined ratio*
82.5

 
91.1

 
85.1

 
90.7

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

Allstate brand - Homeowners Insurance
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
106.1

 
104.3

 
88.6

 
98.3

Effect of catastrophe losses
(46.3
)
 
(42.6
)
 
(27.7
)
 
(35.5
)
Effect of prior year non-catastrophe reserve reestimates
0.3

 
0.4

 
0.1

 
0.1

Underlying combined ratio*
60.1

 
62.1

 
61.0

 
62.9

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
1.4

 
0.3

 
0.6

 
1.3


11

Esurance brand - Total
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
86.2

 
100.6

 
91.3

 
100.0

Effect of catastrophe losses
(3.4
)
 
(4.8
)
 
(2.0
)
 
(3.0
)
Effect of prior year non-catastrophe reserve reestimates
(0.2
)
 
0.4

 
(0.2
)
 
(0.1
)
Effect of amortization of purchased intangibles
(0.2
)
 
—

 
(0.1
)
 
(0.1
)
Underlying combined ratio*
82.4

 
96.2

 
89.0

 
96.8

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
—

 
0.4

 
—

 
0.2

Encompass brand - Total
Three months ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
97.6

 
97.2

 
96.1

 
99.0

Effect of catastrophe losses
(23.3
)
 
(10.2
)
 
(13.9
)
 
(11.0
)
Effect of prior year non-catastrophe reserve reestimates
0.4

 
2.8

 
0.1

 
1.2

Underlying combined ratio*
74.7

 
89.8

 
82.3

 
89.2

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
—

 
1.6

 
(0.4
)
 
1.6





# # # # #

12
allcorp63020investorsupp
Exhibit 99.2 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 Condensed Consolidated Statements of Financial Position 5 Allstate Life 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 Policies in Force 9 Allstate Benefits Premiums Written for Allstate Protection and Service Businesses 10 Segment Results and Other Statistics 29 Return on Equity 30 Property-Liability Results 11 Allstate Annuities 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 Allstate Protection Corporate and Other Impact of Net Rate Changes Approved on Premiums Written 15 Corporate and Other Segment Results 33 Allstate Brand Profitability Measures 16 Allstate Brand Statistics 17 Investments 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 Discontinued Lines and Coverages Definitions of Non-GAAP Measures 41,42 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 Property and casualty insurance claims and claims expense 5,222 5,341 5,749 6,051 6,356 5,820 10,563 12,176 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, 2020 2020 2019 2019 2019 2019 2020 2019 Contribution to income 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, 2020 2020 2019 2019 2019 2019 Book value per common share 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 Auto 20,464 20,323 20,398 20,339 20,301 20,145 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 Auto 1,514 1,503 1,515 1,543 1,548 1,548 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 Auto 473 485 493 496 497 499 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 Allstate Protection Plans 120,301 107,124 99,632 89,783 83,968 77,866 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) Total Allstate agencies (4) 12,600 12,700 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. • 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-proprietary products 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. (2) 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. (3) Rounded to the nearest hundred. (4) Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and employee producers in Canada. (5) Represents employees of Allstate agencies who are licensed to sell Allstate products. (6) 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, 2020 2020 2019 2019 2019 2019 2020 2019 Allstate Protection Allstate brand (1) Auto $ 5,572 $ 5,574 $ 5,470 $ 5,599 $ 5,472 $ 5,395 $ 11,146 $ 10,867 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 Auto 482 517 460 525 469 532 999 1,001 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 Auto 136 118 127 147 146 120 254 266 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 Auto 6,190 6,209 6,057 6,271 6,087 6,047 12,399 12,134 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) Allstate Protection Plans $ 310 $ 221 $ 278 $ 181 $ 167 $ 206 $ 531 $ 373 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 Auto $ 297 $ 239 $ 253 $ 291 $ 287 $ 205 $ 536 $ 492 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 (2) 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. (3) 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. (4) 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 (2) 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, 2020 2020 2019 2019 2019 2019 2020 2019 Allstate Protection Allstate brand Auto $ 124 $ 12 $ 2 $ 130 $ 179 $ 68 $ 136 $ 247 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 Auto 7 1 2 9 10 3 8 13 Homeowners 11 2 2 7 15 3 13 18 Total 18 3 4 16 25 6 21 31 Encompass brand Auto 4 - - 4 3 3 4 6 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 Auto 135 13 4 143 192 74 148 266 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 Auto 1.5 0.2 - 1.6 2.2 0.9 0.8 1.6 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 losses on combined ratio 14.4 6.1 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 Auto $ (54) $ 9 $ (11) $ (152) $ (94) $ (58) $ (45) $ (152) 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 Auto 1 3 (1) - (1) 4 4 3 Homeowners - (2) 1 - 1 (1) (2) - Other personal lines - - - - - - - - Total 1 1 - - - 3 2 3 Encompass brand Auto (1) 1 - (1) (9) - - (9) 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 Auto (54) 13 (12) (153) (104) (54) (41) (158) 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 Auto (0.6) 0.2 (0.2) (1.7) (1.2) (0.6) (0.3) (0.9) 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 Allstate brand (0.1) 0.1 (0.2) (1.6) (1.0) - (0.1) (0.4) 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 Auto $ (6) $ (8) $ (8) $ (1) $ (7) $ (1) $ (14) $ (8) 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 Auto - - - (1) 1 - - 1 Homeowners - - - - 1 - - 1 Total - - - (1) 2 - - 2 Encompass brand Auto - (1) - - - - (1) - Homeowners - (1) (1) 3 4 4 (1) 8 Other personal lines - - - (1) - - - - Total - (2) (1) 2 4 4 (2) 8 Total Allstate Protection Auto (6) (9) (8) (2) (6) (1) (15) (7) 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 Auto - (0.1) (0.1) - (0.1) - (0.1) - 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 Allstate brand 0.3 (0.2) (0.1) - - 0.6 - 0.3 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) Auto 751 751 694 753 755 740 1,502 1,495 Homeowners 224 199 196 226 229 197 423 426 Average premium - gross written ($) (3) Auto 594 598 595 589 581 578 596 579 Homeowners 1,328 1,314 1,304 1,308 1,295 1,267 1,322 1,283 Average premium - net earned ($) (4) Auto 545 543 541 537 535 530 544 532 Homeowners 1,221 1,213 1,209 1,191 1,174 1,166 1,217 1,170 Annualized average premium ($) (5) Auto 1,084 1,089 1,080 1,071 1,065 1,057 1,083 1,057 Homeowners 1,225 1,220 1,210 1,198 1,178 1,169 1,219 1,171 Average underlying loss (incurred pure premium) and expense * ($) (6) Auto 895 955 1,003 991 970 953 921 958 Homeowners 736 754 739 779 732 745 744 737 Renewal ratio (%) (7) Auto 88.1 88.0 88.1 88.6 88.8 88.8 88.1 88.8 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 Auto $ 491 $ 487 $ 500 $ 498 $ 496 $ 475 $ 978 $ 971 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 Auto $ 23 $ 23 $ 20 $ 23 $ 20 $ 20 $ 46 $ 40 Total $ 23 $ 23 $ 20 $ 23 $ 20 $ 20 $ 46 $ 40 Incurred losses Auto $ 272 $ 359 $ 405 $ 404 $ 387 $ 367 $ 631 $ 754 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 Auto $ 169 $ 145 $ 160 $ 126 $ 121 $ 129 $ 314 $ 250 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 Combined ratio 86.2 96.3 107.0 101.1 100.6 99.4 91.3 100.0 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 expense ratios 11.1 3.3 - - - - 7.2 - Policies in force (in thousands) Auto 1,514 1,503 1,515 1,543 1,548 1,548 1,514 1,548 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) Auto 117 130 119 149 145 180 247 325 Homeowners 6 5 6 9 7 7 11 14 Average premium - gross written ($) Auto (6-month policy) 653 632 619 626 611 625 642 619 Homeowners (12-month policy) 1,093 1,081 1,047 1,082 1,063 1,016 1,088 1,045 Renewal ratio (%) Auto 83.4 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) Auto $ 32 $ (2) $ 2 $ 1 $ 6 $ (1) $ 30 $ 5 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 Combined ratio 97.6 94.5 93.3 105.8 97.2 100.8 96.1 99.0 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 expense ratios 11.8 3.5 - - - - 7.7 - 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 expense ratios 11.9 3.7 - - - - 7.8 - (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 Net premiums written $ 34 $ 27 $ 27 $ 35 $ 32 $ 25 $ 61 $ 57 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 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 $ 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 Combined ratio 106.9 97.7 94.5 99.6 103.1 96.2 101.6 100.0 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 reestimates on combined ratio 1.3 0.5 - (0.4) 0.4 (0.6) 0.8 - Effect of Shelter-in-Place Payback expense on combined and expense ratios 2.5 - - - - - 1.1 - (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, (net of reinsurance) 2020 2020 2019 2018 2017 2016 2015 Asbestos Beginning reserves $ 790 $ 810 $ 866 $ 884 $ 912 $ 960 $ 1,014 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 Beginning reserves $ 175 $ 179 $ 170 $ 166 $ 179 $ 179 $ 203 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) Beginning reserves $ 370 $ 376 $ 355 $ 357 $ 354 $ 377 $ 395 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) Beginning reserves $ 1,335 $ 1,365 $ 1,391 $ 1,407 $ 1,445 $ 1,516 $ 1,612 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, 2020 2020 2019 2019 2019 2019 2020 2019 Service Businesses Net premiums written $ 467 $ 379 $ 453 $ 364 $ 350 $ 368 $ 846 $ 718 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 Net premiums written $ 113 $ 107 $ 123 $ 126 $ 120 $ 99 $ 220 $ 219 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 Net premiums written $ 44 $ 51 $ 52 $ 57 $ 63 $ 63 $ 95 $ 126 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- tax (35) 12 - (9) - - (23) - DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax 11 (3) (3) 1 (1) (2) 8 (3) Net income applicable to common shareholders $ 64 $ 64 $ 73 $ 40 $ 67 $ 67 $ 128 $ 134 Premiums and contract charges by product Traditional life insurance premiums $ 164 $ 153 $ 165 $ 155 $ 156 $ 154 $ 317 $ 310 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 Premiums $ 165 $ 153 $ 166 $ 155 $ 157 $ 154 $ 318 $ 311 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 Net investment income $ 123 $ 128 $ 134 $ 128 $ 125 $ 127 $ 251 $ 252 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 Allstate agencies 1,789 1,797 1,816 1,818 1,822 1,823 1,789 1,822 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, 2020 2020 2019 2019 2019 2019 Return on equity 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) Life $ 4 $ 6 $ 19 $ 9 $ 9 $ 8 $ 10 $ 17 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, 2020 2020 2019 2019 2019 2019 Return on equity 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-based net 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, 2020 2020 2019 2019 2019 2019 Return on equity 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: Deferred annuities 12.2 % 15.1 % 14.5 % 14.2 % 13.2 % 11.7 % 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 (losses), after-tax (58) (251) 199 (179) (99) (11) (309) (110) 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 Fixed income securities, at fair value $ 64,448 $ 59,857 $ 59,044 $ 59,259 $ 58,484 $ 58,202 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 Liability Businesses Life Benefits Annuities and Other Total 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, 2020 2020 2019 2019 2019 2019 2020 2019 Net investment income Fixed income securities $ 531 $ 525 $ 548 $ 546 $ 543 $ 538 $ 1,056 $ 1,081 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) Fixed income securities 3.6 % 3.6 % 3.9 % 3.9 % 3.8 % 3.8 % 3.6 % 3.8 % 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) Net investment income 0.5 % 0.5 % 0.8 % 1.0 % 1.1 % 0.8 % 1.0 % 1.9 % 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-date pre-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 Liability Businesses Life Benefits Annuities Other Total Net Investment Income Fixed income securities $ 275 $ 10 $ 87 $ 13 $ 138 $ 8 $ 531 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) Fixed income securities 3.1 % 2.8 % 4.6 % 4.1 % 4.3 % 2.7 % 3.6 % 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 Liability Businesses Life Benefits Annuities Other Total Net Investment Income Fixed income securities $ 542 $ 18 $ 173 $ 26 $ 279 $ 18 $ 1,056 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) Fixed income securities 3.2 % 2.7 % 4.6 % 4.1 % 4.3 % 3.1 % 3.6 % 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-date pre-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 Interest-bearing investments $ 41,121 $ 1,639 $ 11,899 $ 1,956 $ 17,287 $ 3,346 $ 77,248 $ 69,694 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 Interest-bearing investments $ 292 $ 10 $ 126 $ 20 $ 165 $ 9 $ 622 $ 668 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-based pre-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 Sales $ 155 $ 9 $ 4 $ - $ 18 $ 1 $ 187 $ 86 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 Interest-bearing investments $ 121 $ - $ - $ - $ 29 $ - $ 150 $ 139 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 Interest-bearing investments $ 2 $ - $ - $ - $ - $ - $ 2 $ 4 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-based pre-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 Sales $ (5) $ - $ - $ - $ (3) $ - $ (8) $ 31 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-based strategy 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-based investments 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-based strategy 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 Interest-bearing investments $ 41,121 $ 1,639 $ 11,899 $ 1,956 $ 17,287 $ 3,346 $ 77,248 $ 69,694 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 Interest-bearing investments $ 586 $ 18 $ 258 $ 40 $ 342 $ 23 $ 1,267 $ 1,331 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-based pre-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 Sales $ 508 $ 23 $ - $ - $ 25 $ 9 $ 565 $ (26) 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 Interest-bearing investments $ 121 $ - $ - $ - $ 29 $ - $ 150 $ 139 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 Interest-bearing investments $ 3 $ - $ - $ - $ - $ - $ 3 $ 5 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-based pre-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 Sales $ 8 $ - $ - $ - $ (6) $ - $ 2 $ (3) 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-based strategy 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-based investments 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-based strategy 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, 2020 2020 2019 2019 2019 2019 2020 2019 Investment position Limited partnerships Private equity $ 5,575 $ 5,781 $ 6,131 $ 6,162 $ 5,952 $ 5,786 $ 5,575 $ 5,952 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 Private equity 395 404 409 407 355 331 395 355 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 Private equity 5,970 6,185 6,540 6,569 6,307 6,117 5,970 6,307 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 Private equity $ (213) $ (199) $ (6) $ 125 $ 216 $ (5) $ (412) $ 211 Real estate (7) 7 17 71 38 12 - 50 PB - limited partnerships (220) (192) 11 196 254 7 (412) 261 Non-LP Private equity 4 (21) (9) 5 10 3 (17) 13 Real estate 18 17 18 19 15 14 35 29 PB - non-LP 22 (4) 9 24 25 17 18 42 Total Private equity (209) (220) (15) 130 226 (2) (429) 224 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 Private equity $ (5) $ (2) $ 42 $ (1) $ (3) $ (3) $ (7) $ (6) Real estate - (3) (3) - 1 - (3) 1 PB - limited partnerships (5) (5) 39 (1) (2) (3) (10) (5) Non-LP Private equity 26 15 (13) 17 8 28 41 36 Real estate (7) 21 (11) 10 31 32 14 63 PB - non-LP 19 36 (24) 27 39 60 55 99 Total Private equity 21 13 29 16 5 25 34 30 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) 10 Year 11.3 % 12.1 % (3) 12.2 % 12.4 % 12.1 % 11.4 % 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 (3) 7.6 9.7 9.5 6.7 (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-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 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-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", "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-GAAP measure.  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-GAAP ratio 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 42