Document
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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): November 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 November 4, 2020, announcing its financial results for the third quarter of 2020, and the Registrant’s third 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 November 4, 2020
99.2                                             Third 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: November 4, 2020

3
Exhibit

Exhibit 99.1

https://cdn.kscope.io/bfcb87e181747b11ea6dec7ed05f33fd-earningsreleaseimagea34.jpg
FOR IMMEDIATE RELEASE

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

Allstate Delivers Strong Results and Advances Transformative Growth Plan

NORTHBROOK, Ill., November 4, 2020 – The Allstate Corporation (NYSE: ALL) today reported financial results for the third quarter of 2020.
The Allstate Corporation Consolidated Highlights
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions, except per share data and ratios)
2020
2019
% / pts
Change
 
2020
2019
% / pts
Change
Consolidated revenues
$
11,500

$
11,069

3.9

 
$
32,773

$
33,203

(1.3
)
Net income applicable to common shareholders
1,126

889

26.7

 
2,863

2,971

(3.6
)
per diluted common share
3.58

2.67

34.1

 
9.01

8.85

1.8

Adjusted net income*
923

946

(2.4
)
 
2,843

2,457

15.7

per diluted common share*
2.94

2.84

3.5

 
8.94

7.32

22.1

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


 
18.9
%
10.7
%
8.2

Adjusted net income*
 
 


 
17.7
%
14.2
%
3.5

Book value per common share
 
 


 
82.39

69.84

18.0

Property-Liability combined ratio
 
 
 
 
 
 
 
Recorded
91.6

91.6


 
88.8

93.1

(4.3
)
Underlying combined ratio*
79.7

86.3

(6.6
)
 
79.6

85.0

(5.4
)
Property-Liability insurance premiums earned
8,952

8,782

1.9

 
26,696

25,970

2.8

Catastrophe losses (1)
990

510

94.1

 
2,387

2,262

5.5

Shelter-in-Place Payback expense


NA

 
948


NA

Total policies in force (in thousands)
 
 


 
172,842

136,000

27.1

*
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.
(1) 
2020 catastrophe losses are net of $495 million favorable prior year reserve reestimates related to California wildfire subrogation settlements.
NA = not applicable
“Allstate delivered excellent returns while adapting to the pandemic and executing our strategy,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation. “We continue to operate virtually, including settlement of most claims, to better serve customers. Total policies in force increased 27% over the last 12 months, reflecting strong growth of Allstate Protection Plans and modest growth in Property-Liability policies. The Property-Liability underlying combined ratio was excellent, reflecting lower frequency of auto accidents as the pandemic reduced miles driven. Investment income was down slightly from the prior year quarter, and the total year-to-date portfolio return was 4.4%. Net income was $1.1 billion for the quarter despite high catastrophe losses, non-recurring charges for a cost reduction program and the impact of low interest rates on future income levels. The return on equity was 18.9% for the last 12 months.
“Our two-part strategy of increasing market share in personal property-liability and expanding the circle of protection for customers also improved results. Transformative Growth will increase market share in Property-Liability by

1


expanding customer access, improving customer value, and investing in marketing and technology. In the Property-Liability businesses, direct customer access increased, costs were reduced and new Allstate advertising was launched. The circle of protection also expanded, with Allstate Protection Plans growing policies 40% since the prior year with adjusted net income increasing to $36 million for the quarter. The Allstate team has proactively adapted this year to the pandemic, wildfires, hurricanes and a tough economic environment while creating long-term value,” concluded Wilson.

Third Quarter 2020 Results

Total revenues of $11.5 billion in the third quarter of 2020 increased 3.9% compared to the prior year quarter, reflecting net realized capital gains of $440 million and a 1.9% increase in Property-Liability insurance premiums earned. Partially offsetting was a $48 million reduction in net investment income due to lower fixed income yields.

Net income applicable to common shareholders was $1.13 billion, or $3.58 per diluted share, in the third quarter of 2020, compared to net income of $889 million, or $2.67 per diluted share, in the third quarter of 2019, primarily due to higher auto insurance underwriting income and net realized capital gains. These favorable impacts were partially offset by higher catastrophe losses and lower life and annuity income in connection with an annual review of actuarial assumptions.
Adjusted net income* of $923 million, or $2.94 per diluted share, decreased 2.4% compared to the prior year quarter due to higher catastrophe losses, restructuring charges related to the Transformative Growth Plan and lower Allstate Life income, partially offset by an improved underlying combined ratio in auto insurance.
Property-Liability Results
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions, except ratios)
2020
2019
% / pts
Change
 
2020
2019
% / pts
Change
Premiums written
9,395

9,312

0.9
%
 
27,159

26,682

1.8
%
Underwriting income
753

737

2.2

 
3,002

1,804

66.4

 
 
 
 
 
 
 
 
Recorded Combined Ratio
91.6

91.6


 
88.8

93.1

(4.3
)
Allstate Brand Auto
85.2

92.9

(7.7
)
 
86.1

92.5

(6.4
)
Allstate Brand Homeowners
104.7

80.9

23.8

 
93.9

92.5

1.4

Encompass Brand
82.7

105.8

(23.1
)
 
91.7

101.3

(9.6
)
 
 
 
 
 
 
 
 
Underlying Combined Ratio*
79.7

86.3

(6.6
)
 
79.6

85.0

(5.4
)
Allstate Brand Auto
84.2

93.1

(8.9
)
 
85.1

91.9

(6.8
)
Allstate Brand Homeowners
64.6

65.1

(0.5
)
 
62.2

63.8

(1.6
)
Encompass Brand
80.6

87.9

(7.3
)
 
81.8

88.7

(6.9
)

Property-Liability written premium of $9.40 billion increased 0.9% in the third quarter of 2020 compared to the prior year. The recorded combined ratio of 91.6 in the third quarter of 2020 generated underwriting income of $753 million, an increase of 2.2% compared to the prior year quarter. Income increased due to a decline in auto losses and increased premiums earned, partially offset by higher catastrophe losses and restructuring charges related to the Transformative Growth Plan.

To expand customer access, Esurance and Allstate’s direct operations were combined in the third quarter and financial results were consolidated as part of the previously announced multi-year Transformative Growth Plan. This plan includes improving the competitive price position of auto insurance through cost reductions while maintaining attractive margins. As a result of these actions, Allstate will incur restructuring charges of approximately $290 million, pre-tax, with $198 million recognized in the third quarter of 2020 and the balance in future quarters.

Underwriting income was favorably impacted by reserve reestimates in the third quarter of 2020. Allstate recovered $495 million for California wildfire subrogation settlements, which reduced catastrophe losses. Non-catastrophe prior year reserve reestimates were an adverse $70 million in the third quarter, due to a $132 million increase from the annual review of asbestos, environmental and other reserves in the Discontinued Lines and Coverages segment.


2


The underlying combined ratio* of 79.7 for the third quarter of 2020 was 6.6 points below the prior year quarter, reflecting lower non-catastrophe losses and higher premiums earned. This was partially offset by the restructuring charge and increased bad debt expense from billing deferral options provided during the pandemic, which increased the third quarter expense ratio by 2.1 points and 0.2 points, respectively. Excluding these impacts, the expense ratio improved by 1.1 points to 22.6, compared to the prior year quarter.

Allstate brand auto insurance net written premium grew 1.1%, and policies in force increased 0.1% in the third quarter of 2020 compared to the prior year quarter. The recorded combined ratio of 85.2 in the third quarter of 2020 was 7.7 points below the prior year quarter, and the underlying combined ratio* of 84.2 in the quarter was 8.9 points below the third quarter of 2019, primarily due to higher premiums earned and lower loss costs from reduced miles driven.

Allstate brand homeowners insurance net written premium grew 2.6%, and policies in force increased 1.2% in the third quarter of 2020 compared to the prior year quarter. The recorded combined ratio of 104.7 in the third quarter of 2020 was 23.8 points above the third quarter of 2019, primarily driven by increased catastrophe losses, despite the favorable impact of prior year catastrophe reserve reestimates from wildfire subrogation settlements. The underlying combined ratio* of 64.6 was 0.5 points better than the prior year quarter, primarily due to a lower expense ratio.

Encompass brand net written premium decreased 6.5% in the third 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 82.7 in the third quarter of 2020 was 23.1 points lower than the prior year quarter, primarily driven by lower catastrophe losses from prior year reserve reestimates related to wildfire subrogation settlements. The underlying combined ratio* of 80.6 in the third quarter was 7.3 points lower than the prior year quarter, driven by lower auto insurance losses from fewer accidents.

Allstate Investment Results
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions, except ratios)
2020
2019
% / pts
Change
 
2020
2019
% / pts
Change
Net investment income
$
832

$
880

(5.5
)
 
$
1,662

$
2,470

(32.7
)
Market-based investment income (1)
659

727

(9.4
)
 
1,987

2,151

(7.6
)
Performance-based investment income (loss) (1)
210

202

4.0

 
(209
)
469

NM

Realized capital gains (losses)
440

197

123.4

 
682

1,183

(42.3
)
Change in unrealized net capital gains and losses, pre-tax
373

518

(28.0
)
 
1,533

2,957

(48.2
)
Total return on investment portfolio
1.8
%
1.9
%
(0.1
)
 
4.4
%
8.0
%
(3.6
)
Total return on investment portfolio (trailing twelve months)
 
 


 
5.7
%
7.8
%
(2.1
)
(1) 
Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.

Allstate Investments $91.2 billion portfolio generated net investment income of $832 million in the third quarter of 2020, a decrease of $48 million from the prior year quarter, primarily due to lower market-based results.

Market-based investments contributed $659 million of investment income in the third quarter of 2020, a decrease of $68 million, or 9.4%, compared to the prior year quarter, due to lower interest-bearing reinvestment yields.

Performance-based investment income totaled $210 million in the third quarter of 2020, compared to income of $202 million in the prior year quarter. Losses of $209 million year to date include write-downs on four underperforming private equity investments and first quarter equity market declines.

Net realized capital gains were $440 million in the third quarter of 2020, compared to $197 million in the prior year quarter, driven by gains on sales of fixed income securities and higher equity valuations.


3


Unrealized net capital gains increased $373 million from the second quarter of 2020, as fixed income valuations increased, reflecting tighter credit spreads.

Total return on the investment portfolio was 1.8% for the quarter and 4.4% year to date, reflecting higher valuations for interest-bearing and equity investments​.

Allstate Life, Benefits and Annuities Results
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions)
2020
2019
% Change
 
2020
2019
% Change
Premiums and Contract Charges
 
 
 
 
 
 
 
Allstate Life
$
330

$
331

(0.3
)%
 
$
1,002

$
1,001

0.1
 %
Allstate Benefits
287

291

(1.4
)
 
832

863

(3.6
)
Allstate Annuities
3

3


 
7

10

(30.0
)
Adjusted Net Income (Loss)
 
 


 
 
 


Allstate Life
$
(14
)
$
44

NM

 
$
138

$
185

(25.4
)%
Allstate Benefits
33

31

6.5

 
62

99

(37.4
)
Allstate Annuities
37

16

131.3

 
(213
)
43

NM

NM = not meaningful
Allstate Life recorded an adjusted net loss of $14 million in the third quarter of 2020, compared to adjusted net income of $44 million in the prior year quarter, due to accelerated amortization of deferred policy acquisition costs (“DAC”) driven by lower projected future interest rates and higher contract benefits. Coronavirus related death claims were approximately $22 million in the quarter and $48 million year to date.

Allstate Benefits premium declined 1.4% compared to the prior year quarter, driven by the non-renewal of a large underperforming account in the fourth quarter of 2019 and decreased premiums collected due to economic impacts from the coronavirus. Adjusted net income of $33 million in the third quarter of 2020 increased by $2 million compared to the third quarter of 2019, primarily driven by lower contract benefits, partially offset by higher DAC amortization related to our annual review of assumptions.

Allstate Annuities adjusted net income of $37 million in the third quarter of 2020 increased by $21 million compared to the prior year quarter, primarily due to lower contract benefits.

A premium deficiency reserve of $178 million, after-tax, was recognized for immediate annuities with life contingencies as part of the annual actuarial review, which assumed interest rates will remain low for an extended period. This reduced net income but is excluded from adjusted net income.

Service Businesses Results
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions)
2020
2019
% / $
Change
 
2020
2019
% / $
Change
Total Revenues
$
498

$
418

19.1
 %
 
$
1,404

$
1,215

15.6
 %
Allstate Protection Plans
257

177

45.2

 
698

511

36.6

Allstate Dealer Services
129

115

12.2

 
369

336

9.8

Allstate Roadside Services
59

68

(13.2
)
 
172

214

(19.6
)
Arity
25

35

(28.6
)
 
81

84

(3.6
)
Allstate Identity Protection
28

23

21.7

 
84

70

20.0

Adjusted Net Income (Loss)
$
40

$
8

$
32

 
$
115

$
35

$
80

Allstate Protection Plans
36

15

21

 
105

48

57

Allstate Dealer Services
7

6

1

 
22

19

3

Allstate Roadside Services
4

(5
)
9

 
8

(14
)
22

Arity
(3
)
(1
)
(2
)
 
(9
)
(4
)
(5
)
Allstate Identity Protection
(4
)
(7
)
3

 
(11
)
(14
)
3



4


Service Businesses policies in force grew to 133.0 million, and revenues increased to $498 million in the third quarter of 2020, 19.1% higher than the prior year quarter. Adjusted net income of $40 million increased by $32 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 $257 million increased $80 million (45.2%) due to policy growth of 36.0 million (40.2%) compared to the prior year quarter. Adjusted net income of $36 million in the third quarter of 2020 was $21 million higher than the prior year quarter, and was $105 million year-to-date.

Allstate Dealer Services revenue of $129 million was 12.2% higher than the third quarter of 2019. Adjusted net income of $7 million was $1 million higher than the prior year quarter, reflecting increased revenue and lower losses from fewer claims.

Allstate Roadside Services revenue of $59 million in the third quarter of 2020 decreased 13.2% compared to the third quarter of 2019, primarily reflecting the loss of several low profitability accounts. Adjusted net income of $4 million in the third quarter was $9 million favorable to the prior year quarter, driven by improved loss experience and lower operating expenses.

Arity revenue was $25 million with an adjusted net loss of $3 million in the third quarter of 2020, primarily from contracts with affiliates. Active connections increased 18% from the prior year to 22.9 million.

Allstate Identity Protection revenue of $28 million in the third quarter of 2020 increased 21.7% compared to the prior year quarter as policies in force grew to 2.5 million. Adjusted net loss of $4 million in the third quarter of 2020 reflects ongoing technology and product investments.


Proactive Capital Management

“Allstate continues to generate strong returns on shareholders’ capital,” said Mario Rizzo, Chief Financial Officer. “Adjusted net income return on equity* of 17.7% for the last 12 months improved 3.5 points compared to the prior year quarter due to excellent operating results. Book value per share of $82.39 increased 18.0%. In the third quarter, we returned $967 million in cash to shareholders through a combination of $169 million in common shareholder dividends and $798 million in share repurchases, including a $750 million accelerated share repurchase agreement in September.”





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 Thursday, November 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)

September 30, 2020
 
December 31, 2019
Assets
 
 
 
Investments:
 
 
 
Fixed income securities, at fair value (amortized cost, net $62,267 and $56,293)
$
66,551

 
$
59,044

Equity securities, at fair value (cost $3,867 and $6,568)
4,395

 
8,162

Mortgage loans, net
4,655

 
4,817

Limited partnership interests
7,232

 
8,078

Short-term, at fair value (amortized cost $4,559 and $4,256)
4,559

 
4,256

Other, net
3,805

 
4,005

Total investments
91,197

 
88,362

Cash
370

 
338

Premium installment receivables, net
6,609

 
6,472

Deferred policy acquisition costs
4,661

 
4,699

Reinsurance and indemnification recoverables, net
9,097

 
9,211

Accrued investment income
616

 
600

Property and equipment, net
1,076

 
1,145

Goodwill
2,544

 
2,545

Other assets, net
3,516

 
3,534

Separate Accounts
3,064

 
3,044

Total assets
$
122,750

 
$
119,950

Liabilities
 
 
 
Reserve for property and casualty insurance claims and claims expense
$
27,987

 
$
27,712

Reserve for life-contingent contract benefits
12,759

 
12,300

Contractholder funds
17,288

 
17,692

Unearned premiums
16,029

 
15,343

Claim payments outstanding
1,013

 
929

Deferred income taxes
905

 
1,154

Other liabilities and accrued expenses
9,807

 
9,147

Long-term debt
6,635

 
6,631

Separate Accounts
3,064

 
3,044

Total liabilities
95,487

 
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, 304 million and 319 million shares outstanding
9

 
9

Additional capital paid-in
3,453

 
3,463

Retained income
50,336

 
48,074

Treasury stock, at cost (596 million and 581 million shares)
(31,338
)
 
(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
3,373

 
2,094

Unrealized adjustment to DAC, DSI and insurance reserves
(628
)
 
(277
)
Total unrealized net capital gains and losses
2,744

 
1,887

Unrealized foreign currency translation adjustments
(64
)
 
(59
)
Unamortized pension and other postretirement prior service credit
153

 
122

Total accumulated other comprehensive income
2,833

 
1,950

Total shareholders’ equity
27,263

 
25,998

Total liabilities and shareholders’ equity
$
122,750

 
$
119,950





6


THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
 
 
 
($ in millions, except per share data)
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
Property and casualty insurance premiums
$
9,336

 
$
9,094

 
$
27,794

 
$
26,882

Life premiums and contract charges
620

 
625

 
1,841

 
1,874

Other revenue
272

 
273

 
794

 
794

Net investment income
832

 
880

 
1,662

 
2,470

Realized capital gains (losses)
440

 
197

 
682

 
1,183

Total revenues
11,500

 
11,069

 
32,773

 
33,203

 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
Property and casualty insurance claims and claims expense
6,072

 
6,051

 
16,635

 
18,227

Shelter-in-Place Payback expense

 

 
948

 

Life contract benefits
727

 
513

 
1,725

 
1,521

Interest credited to contractholder funds
150

 
169

 
482

 
487

Amortization of deferred policy acquisition costs
1,492

 
1,425

 
4,242

 
4,151

Operating costs and expenses
1,380

 
1,414

 
4,230

 
4,174

Pension and other postretirement remeasurement (gains) losses
(71
)
 
225

 
320

 
365

Restructuring and related charges
200

 

 
219

 
27

Amortization of purchased intangibles
31

 
32

 
88

 
96

Impairment of purchased intangibles

 

 

 
55

Interest expense
78

 
80

 
238

 
245

Total costs and expenses
10,059

 
9,909

 
29,127

 
29,348

 
 
 
 
 
 
 
 
Gain on disposition of operations
1

 

 
3

 
3

 
 
 
 
 
 
 
 
Income from operations before income tax expense
1,442

 
1,160

 
3,649

 
3,858

 
 
 
 
 
 
 
 
Income tax expense
289

 
229

 
697

 
784

 
 
 
 
 
 
 
 
Net income
1,153

 
931

 
2,952

 
3,074

 
 
 
 
 
 
 
 
Preferred stock dividends
27

 
42

 
89

 
103

 
 
 
 
 
 
 
 
Net income applicable to common shareholders
$
1,126

 
$
889

 
$
2,863

 
$
2,971

 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common shareholders per common share – Basic
$
3.62

 
$
2.71

 
$
9.11

 
$
8.98

 
 
 
 
 
 
 
 
Weighted average common shares – Basic
311.2

 
327.7

 
314.1

 
330.8

 
 
 
 
 
 
 
 
Net income applicable to common shareholders per common share – Diluted
$
3.58

 
$
2.67

 
$
9.01

 
$
8.85

 
 
 
 
 
 
 
 
Weighted average common shares – Diluted
314.1

 
333.0

 
317.9

 
335.7


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 September 30,
 
Consolidated
 
Per diluted common share
 
2020
 
2019
 
2020
 
2019
Net income applicable to common shareholders
$
1,126

 
$
889

 
$
3.58

 
$
2.67

Realized capital (gains) losses, after-tax
(346
)
 
(155
)
 
(1.10
)
 
(0.47
)
Pension and other postretirement remeasurement (gains) losses, after-tax
(56
)
 
179

 
(0.18
)
 
0.54

Curtailment gain, after-tax
(7
)
 

 
(0.02
)
 

Valuation changes on embedded derivatives not hedged, after-tax

 
10

 

 
0.03

DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax
4

 
(1
)
 
0.01

 

Premium deficiency for immediate annuities, after-tax
178

 

 
0.57

 

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
24

 
25

 
0.08

 
0.07

Adjusted net income*
$
923

 
$
946

 
$
2.94

 
$
2.84

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
Consolidated
 
Per diluted common share
 
2020
 
2019
 
2020
 
2019
Net income applicable to common shareholders
$
2,863

 
$
2,971

 
$
9.01

 
$
8.85

Realized capital (gains) losses, after-tax
(534
)
 
(935
)
 
(1.68
)
 
(2.79
)
Pension and other postretirement remeasurement (gains) losses, after-tax
253

 
289

 
0.79

 
0.86

Curtailment gain, after-tax
(7
)
 

 
(0.02
)
 

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

 
15

 
0.08

 
0.05

DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax
(4
)
 
2

 
(0.01
)
 
0.01

Premium deficiency for immediate annuities, after-tax
178

 

 
0.56

 

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

 
(2
)
 

 
(0.01
)
Business combination expenses and the amortization of purchased intangibles, after-tax
69

 
76

 
0.22

 
0.23

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*
$
2,843

 
$
2,457

 
$
8.94

 
$
7.32


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 September 30,
 
2020
 
2019
Return on common shareholders’ equity
 
 
 
Numerator:
 
 
 
Net income applicable to common shareholders
$
4,570

 
$
2,386

Denominator:
 
 
 
Beginning common shareholders’ equity (1)
$
23,088

 
$
21,356

Ending common shareholders’ equity (1)
25,293

 
23,088

Average common shareholders’ equity
$
24,191

 
$
22,222

Return on common shareholders’ equity
18.9
%
 
10.7
%

($ in millions)
For the twelve months ended September 30,
 
2020
 
2019
Adjusted net income return on common shareholders’ equity
 
 
 
Numerator:
 
 
 
Adjusted net income *
$
3,863

 
$
3,009

 
 
 
 
Denominator:
 
 
 
Beginning common shareholders’ equity (1)
$
23,088

 
$
21,356

Less: Unrealized net capital gains and losses
2,023

 
(16
)
Adjusted beginning common shareholders’ equity
21,065

 
21,372

 
 
 
 
Ending common shareholders’ equity (1)
25,293

 
23,088

Less: Unrealized net capital gains and losses
2,744

 
2,023

Adjusted ending common shareholders’ equity
22,549

 
21,065

Average adjusted common shareholders’ equity
$
21,807

 
$
21,219

Adjusted net income return on common shareholders’ equity *
17.7
%
 
14.2
%
_____________
(1) Excludes equity related to preferred stock of $1,970 million as of September 30, 2020, $3,052 million as of September 30, 2019 and $2,303 million as of September 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 September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
91.6

 
91.6

 
88.8

 
93.1

Effect of catastrophe losses
(11.1
)
 
(5.8
)
 
(8.9
)
 
(8.7
)
Effect of prior year non-catastrophe reserve reestimates
(0.8
)
 
0.5

 
(0.3
)
 
0.6

Underlying combined ratio*
79.7

 
86.3

 
79.6

 
85.0

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
(5.7
)
 

 
(1.9
)
 
0.2

Allstate brand - Total
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
90.3

 
90.0

 
88.1

 
92.4

Effect of catastrophe losses
(11.3
)
 
(5.4
)
 
(8.9
)
 
(8.6
)
Effect of prior year non-catastrophe reserve reestimates
0.7

 
1.6

 
0.3

 
1.1

Underlying combined ratio*
79.7

 
86.2

 
79.5

 
84.9

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
(5.4
)
 
(0.1
)
 
(1.8
)
 
0.2

Allstate brand - Auto Insurance
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
85.2

 
92.9

 
86.1

 
92.5

Effect of catastrophe losses
(1.6
)
 
(2.3
)
 
(1.3
)
 
(2.3
)
Effect of prior year non-catastrophe reserve reestimates
0.6

 
2.5

 
0.3

 
1.7

Underlying combined ratio*
84.2

 
93.1

 
85.1

 
91.9

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
(0.4
)
 

 
(0.2
)
 

Allstate brand - Homeowners Insurance
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
104.7

 
80.9

 
93.9

 
92.5

Effect of catastrophe losses
(40.9
)
 
(15.8
)
 
(32.1
)
 
(28.8
)
Effect of prior year non-catastrophe reserve reestimates
0.9

 

 
0.4

 
0.1

Effect of amortization of purchased intangibles
(0.1
)
 

 

 

Underlying combined ratio*
64.6

 
65.1

 
62.2

 
63.8

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
(20.3
)
 
(0.1
)
 
(6.5
)
 
0.9

Encompass brand - Total
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
Combined ratio
82.7

 
105.8

 
91.7

 
101.3

Effect of catastrophe losses
(2.1
)
 
(18.3
)
 
(10.0
)
 
(13.5
)
Effect of prior year non-catastrophe reserve reestimates

 
0.4

 
0.1

 
0.9

Underlying combined ratio*
80.6

 
87.9

 
81.8

 
88.7

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
(17.3
)
 
0.8

 
(6.0
)
 
1.3


11






# # # # #

12
allcorp93020investorsupp
Exhibit 99.2 The Allstate Corporation Investor Supplement Third 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 - Third Quarter 2020 As part of the Transformative Growth Plan, Esurance brand results have been combined into the Allstate brand in the third quarter of 2020. Historical results for these brands have been updated to conform with this presentation. The highlighted sections below reflect the pages that were impacted by the integration. Table of Contents Consolidated Operations Service Businesses Condensed Consolidated Statements of Operations 1 Segment Results 23 Contribution to Income 2 Allstate Protection Plans Results 24 Segment Results 3,4 Condensed Consolidated Statements of Financial Position 5 Allstate Life Book Value per Common Share 6 Segment Results and Other Statistics 25 Return on Common Shareholders' Equity 7 Return on Equity 26 Debt to Capital 8 Policies in Force 9 Allstate Benefits Premiums Written for Allstate Protection and Service Businesses 10 Segment Results and Other Statistics 27 Return on Equity 28 Property-Liability Results 11 Allstate Annuities Catastrophe Losses 12 Segment Results and Other Statistics 29 Prior Year Reserve Reestimates 13 Return on Equity 30 Catastrophe Losses included in Prior Year Reserve Reestimates 14 Allstate Protection Corporate and Other Allstate Brand Profitability Measures 15 Corporate and Other Segment Results 31 Allstate Brand Statistics 16 Encompass Brand Profitability Measures and Statistics 17 Investments Auto Profitability Measures by Brand 18 Investment Position 32 Homeowners Profitability Measures by Brand 19 Net Investment Income, Yields and Realized Capital Gains (Losses) (Pre-tax) 33 Other Personal Lines Profitability Measures by Brand 20 Net Investment Income, Yields and Realized Capital Gains (Losses) (Pre-tax) by Segment 34,35 Commercial Lines Profitability Measures 21 Investment Position and Results by Strategy by Segment 36,37 Discontinued Lines and Coverages Performance-Based Investments 38 Reserves 22 Definitions of Non-GAAP Measures 39,40


 
The Allstate Corporation Condensed Consolidated Statements of Operations ($ in millions, except per share data) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Revenues Property and casualty insurance premiums (1) $ 9,336 $ 9,223 $ 9,235 $ 9,194 $ 9,094 $ 8,986 $ 8,802 $ 27,794 $ 26,882 Life premiums and contract charges (2) 620 604 617 627 625 621 628 1,841 1,874 Other revenue (3) 272 257 265 260 273 271 250 794 794 Net investment income 832 409 421 689 880 942 648 1,662 2,470 Realized capital gains (losses) 440 704 (462) 702 197 324 662 682 1,183 Total revenues 11,500 11,197 10,076 11,472 11,069 11,144 10,990 32,773 33,203 Costs and expenses Property and casualty insurance claims and claims expense 6,072 5,222 5,341 5,749 6,051 6,356 5,820 16,635 18,227 Shelter-in-place payback expense - 738 210 - - - - 948 - Life contract benefits 727 497 501 518 513 511 497 1,725 1,521 Interest credited to contractholder funds 150 200 132 153 169 156 162 482 487 Amortization of deferred policy acquisition costs 1,492 1,349 1,401 1,382 1,425 1,362 1,364 4,242 4,151 Operating costs and expenses 1,380 1,451 1,399 1,516 1,414 1,380 1,380 4,230 4,174 Pension and other postretirement remeasurement (gains) losses (71) 73 318 (251) 225 125 15 320 365 Restructuring and related charges 200 14 5 14 - 9 18 219 27 Amortization of purchased intangibles 31 29 28 30 32 32 32 88 96 Impairment of purchased intangibles - - - 51 - 55 - - 55 Interest expense 78 79 81 82 80 82 83 238 245 Total costs and expenses 10,059 9,652 9,416 9,244 9,909 10,068 9,371 29,127 29,348 Gain on disposition of operations 1 1 1 3 - 2 1 3 3 Income from operations before income tax expense 1,442 1,546 661 2,231 1,160 1,078 1,620 3,649 3,858 Income tax expense 289 296 112 458 229 227 328 697 784 Net income 1,153 1,250 549 1,773 931 851 1,292 2,952 3,074 Preferred stock dividends 27 26 36 66 42 30 31 89 103 Net income applicable to common shareholders $ 1,126 $ 1,224 $ 513 $ 1,707 $ 889 $ 821 $ 1,261 $ 2,863 $ 2,971 Earnings per common share (4) Net income applicable to common shareholders per common share - Basic $ 3.62 $ 3.90 $ 1.62 $ 5.32 $ 2.71 $ 2.47 $ 3.79 $ 9.11 $ 8.98 Weighted average common shares - Basic 311.2 313.7 317.4 320.7 327.7 332.0 332.6 314.1 330.8 Net income applicable to common shareholders per common share - Diluted $ 3.58 $ 3.86 $ 1.59 $ 5.23 $ 2.67 $ 2.44 $ 3.74 $ 9.01 $ 8.85 Weighted average common shares - Diluted 314.1 317.0 322.4 326.3 333.0 336.9 337.5 317.9 335.7 Cash dividends declared per common share $ 0.54 $ 0.54 $ 0.54 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 1.62 $ 1.50 (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, 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 3Q20 Supplement 1


 
The Allstate Corporation Contribution to Income ($ in millions, except per share data) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Contribution to income Net income applicable to common shareholders $ 1,126 $ 1,224 $ 513 $ 1,707 $ 889 $ 821 $ 1,261 $ 2,863 $ 2,971 Realized capital (gains) losses, after-tax (346) (554) 366 (553) (155) (256) (524) (534) (935) Pension and other postretirement remeasurement (gains) losses, after-tax (56) 58 251 (199) 179 99 11 253 289 Curtailment gain, after-tax (7) - - - - - - (7) - Valuation changes on embedded derivatives not hedged, after-tax - 41 (14) - 10 2 3 27 15 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax 4 (11) 3 3 (1) 1 2 (4) 2 Premium deficiency for immediate annuities, after-tax 178 - - - - - - 178 - Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - - - (1) - (1) - (2) Business combination expenses and the amortization of purchased intangibles, after-tax 24 23 22 24 25 26 25 69 76 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* $ 923 $ 780 $ 1,140 $ 1,020 $ 946 $ 735 $ 776 $ 2,843 $ 2,457 Income per common share - Diluted Net income applicable to common shareholders $ 3.58 $ 3.86 $ 1.59 $ 5.23 $ 2.67 $ 2.44 $ 3.74 $ 9.01 $ 8.85 Realized capital (gains) losses, after-tax (1.10) (1.75) 1.13 (1.69) (0.47) (0.76) (1.55) (1.68) (2.79) Pension and other postretirement remeasurement (gains) losses, after-tax (0.18) 0.18 0.78 (0.61) 0.54 0.29 0.03 0.79 0.86 Curtailment gain, after-tax (0.02) - - - - - - (0.02) - Valuation changes on embedded derivatives not hedged, after-tax - 0.13 (0.04) - 0.03 - 0.01 0.08 0.05 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax 0.01 (0.03) 0.01 0.01 - - - (0.01) 0.01 Premium deficiency for immediate annuities, after-tax 0.57 - - - - - - 0.56 - Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - - - - - - - (0.01) Business combination expenses and the amortization of purchased intangibles, after-tax 0.08 0.07 0.07 0.07 0.07 0.08 0.07 0.22 0.23 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* $ 2.94 $ 2.46 $ 3.54 $ 3.13 $ 2.84 $ 2.18 $ 2.30 $ 8.94 $ 7.32 Weighted average common shares - Diluted 314.1 317.0 322.4 326.3 333.0 336.9 337.5 317.9 335.7 The Allstate Corporation 3Q20 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 September 30, 2020 Premiums and contract charges $ 8,952 $ - $ 8,952 $ 384 $ 330 $ 287 $ 3 $ - $ - $ 9,956 Intersegment insurance premiums and service fees - - - 36 - - - - (36) - Other revenue 192 - 192 52 28 - - - - 272 Claims and claims expense (5,833) (135) (5,968) (107) - - - - 3 (6,072) Shelter-in-Place Payback expense - - - - - - - - - - Contract benefits and interest credited to contractholder funds - - - - (324) (136) (417) - - (877) Amortization of deferred policy acquisition costs (1,158) - (1,158) (169) (106) (59) - - - (1,492) Operating costs and expenses (1,075) - (1,075) (160) (81) (68) (6) (23) 33 (1,380) Pension and other postretirement remeasurement gains (losses) - - - - - - - 71 - 71 Restructuring and related charges (187) - (187) 2 (2) - (2) (11) - (200) Amortization of purchased intangibles (3) - (3) (28) - - - - - (31) Interest expense - - - - - - - (78) - (78) Underwriting income (loss) $ 888 $ (135) 753 Net investment income 422 12 123 18 245 12 - 832 Realized capital gains (losses) 292 14 9 3 112 10 - 440 Gain on disposition of operations - - - - 1 - - 1 Income tax (expense) benefit (302) (6) 10 (9) 13 5 - (289) Preferred stock dividends - - - - - (27) - (27) Net income (loss) applicable to common shareholders $ 1,165 $ 30 $ (13) $ 36 $ (51) $ (41) $ - $ 1,126 Realized capital (gains) losses, after-tax (230) (11) (6) (3) (89) (7) - (346) Pension and other postretirement remeasurement (gains) losses, after-tax - - - - - (56) (56) Curtailment gain, after-tax - - - - - (7) - (7) Valuation changes on embedded derivatives not hedged, after-tax - - 1 - (1) - - - DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - 4 - - - - 4 Premium deficiency for immediate annuities, after-tax - - - - 178 - - 178 Business combination expenses and the amortization of purchased intangibles, after-tax 3 21 - - - - - 24 Gain on disposition of operations, after-tax - - - - - - - - Adjusted net income (loss) * $ 938 $ 40 (1) $ (14) (1) $ 33 (1) $ 37 (1) $ (111) (1) $ - $ 923 Three months ended September 30, 2019 Premiums and contract charges $ 8,782 $ - $ 8,782 $ 312 $ 331 $ 291 $ 3 $ - $ - $ 9,719 Intersegment insurance premiums and service fees - - - 44 - - - - (44) - Other revenue 195 - 195 47 31 - - - - 273 Claims and claims expense (5,862) (98) (5,960) (93) - - - - 2 (6,051) Contract benefits and interest credited to contractholder funds - - - - (287) (170) (225) - - (682) Amortization of deferred policy acquisition costs (1,167) - (1,167) (139) (84) (33) (2) - - (1,425) Operating costs and expenses (1,112) (1) (1,113) (171) (77) (69) (7) (19) 42 (1,414) Pension and other postretirement remeasurement gains (losses) - - - - - - - (225) - (225) Restructuring and related charges 1 - 1 (1) - - - - - - Amortization of purchased intangibles (1) - (1) (31) - - - - - (32) Impairment of purchased intangibles - - - - - - - - - - Interest expense - - - - - - - (80) - (80) Underwriting income (loss) $ 836 $ (99) 737 Net investment income 448 11 128 21 251 21 - 880 Realized capital gains (losses) 163 4 5 2 20 3 - 197 Gain on disposition of operations - - - - - - - - Income tax (expense) benefit (272) 4 (7) (9) (9) 64 - (229) Preferred stock dividends - - - - - (42) - (42) Net income (loss) applicable to common shareholders $ 1,076 $ (13) $ 40 $ 33 $ 31 $ (278) $ - $ 889 Realized capital (gains) losses, after-tax (127) (4) (4) (2) (16) (2) - (155) Pension and other postretirement remeasurement (gains) losses, after-tax - - - - - 179 - 179 Valuation changes on embedded derivatives not hedged, after-tax - - 9 - 1 - - 10 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 (1) - - - - - - (1) Business combination expenses and the amortization of purchased intangibles, after-tax - 25 - - - - - 25 Impairment of purchased intangibles, after-tax - - - - - - - - Gain on disposition of operations, after-tax - - - - - - - - Adjusted net income (loss) * $ 948 $ 8 (1) $ 44 (1) $ 31 (1) $ 16 (1) $ (101) (1) $ - $ 946 (1) Adjusted net income is the segment measure used for each business. The Allstate Corporation 3Q20 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 Nine months ended September 30, 2020 Premiums and contract charges $ 26,696 $ - $ 26,696 $ 1,098 $ 1,002 $ 832 $ 7 $ - $ - $ 29,635 Intersegment insurance premiums and service fees - - - 109 - - - - (109) - Other revenue 555 - 555 155 84 - - - - 794 Claims and claims expense (16,219) (139) (16,358) (284) - - - - 7 (16,635) Shelter-in-Place Payback expense (948) - (948) - - - - - - (948) Contract benefits and interest credited to contractholder funds - - - - (944) (418) (845) - - (2,207) Amortization of deferred policy acquisition costs (3,474) - (3,474) (482) (144) (139) (3) - - (4,242) Operating costs and expenses (3,261) (2) (3,263) (484) (240) (253) (19) (73) 102 (4,230) Pension and other postretirement remeasurement gains (losses) - - - - - - - (320) - (320) Restructuring and related charges (199) - (199) (1) (5) (1) (2) (11) - (219) Amortization of purchased intangibles (7) - (7) (81) - - - - - (88) Interest expense - - - - - - - (238) - (238) Underwriting income (loss) $ 3,143 $ (141) 3,002 Net investment income 802 33 374 58 358 37 - 1,662 Realized capital gains (losses) 571 9 (3) - 88 17 - 682 Gain on disposition of operations - - - - 3 - - 3 Income tax (expense) benefit (876) (13) (9) (17) 91 127 - (697) Preferred stock dividends - - - - - (89) - (89) Net income (loss) applicable to common shareholders $ 3,499 $ 59 $ 115 $ 62 $ (322) $ (550) $ - $ 2,863 Realized capital (gains) losses, after-tax (447) (7) 3 - (70) (13) - (534) Pension and other postretirement remeasurement (gains) losses, after-tax - - - - - 253 - 253 Curtailment gain, after-tax - - - - - (7) - (7) Valuation changes on embedded derivatives not hedged, after-tax - - 24 - 3 - - 27 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - (4) - - - - (4) Premium deficiency for immediate annuities, after-tax - - - - 178 - - 178 Business combination expenses and the amortization of purchased intangibles, after-tax 6 63 - - - - - 69 Gain on disposition of operations, after-tax - - - - (2) - - (2) Adjusted net income (loss) * $ 3,058 $ 115 (1) $ 138 (1) $ 62 (1) $ (213) (1) $ (317) (1) $ - $ 2,843 Nine months ended September 30, 2019 Premiums and contract charges $ 25,970 $ - $ 25,970 $ 912 $ 1,001 $ 863 $ 10 $ - $ - $ 28,756 Intersegment insurance premiums and service fees - - - 110 - - - - (110) - Other revenue 561 - 561 142 91 - - - - 794 Claims and claims expense (17,859) (103) (17,962) (271) - - - - 6 (18,227) Contract benefits and interest credited to contractholder funds - - - - (859) (475) (674) - - (2,008) Amortization of deferred policy acquisition costs (3,494) - (3,494) (400) (141) (111) (5) - - (4,151) Operating costs and expenses (3,240) (2) (3,242) (480) (259) (211) (22) (64) 104 (4,174) Pension and other postretirement remeasurement gains (losses) - - - - - - - (365) - (365) Restructuring and related charges (26) - (26) - (1) - - - - (27) Amortization of purchased intangibles (3) - (3) (93) - - - - - (96) Impairment of purchased intangibles - - - (55) - - - - - (55) Interest expense - - - - - - - (245) - (245) Underwriting income (loss) $ 1,909 $ (105) 1,804 Net investment income 1,210 30 380 61 737 52 - 2,470 Realized capital gains (losses) 916 21 1 8 224 13 - 1,183 Gain on disposition of operations - - - - 3 - - 3 Income tax (expense) benefit (809) 19 (39) (29) (57) 131 - (784) Preferred stock dividends - - - - - (103) - (103) Net income (loss) applicable to common shareholders $ 3,121 $ (65) $ 174 $ 106 $ 216 $ (581) $ - $ 2,971 Realized capital (gains) losses, after-tax (724) (17) - (7) (177) (10) - (935) Pension and other postretirement remeasurement (gains) losses, after-tax - - - - - 289 - 289 Valuation changes on embedded derivatives not hedged, after-tax - - 9 - 6 - - 15 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - 2 - - - - 2 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (2) - - - - - - (2) Business combination expenses and the amortization of purchased intangibles, after-tax 2 74 - - - - - 76 Impairment of purchased intangibles, after-tax - 43 - - - - - 43 Gain on disposition of operations, after-tax - - - - (2) - - (2) Adjusted net income (loss) * $ 2,397 $ 35 (1) $ 185 (1) $ 99 (1) $ 43 (1) $ (302) (1) $ - $ 2,457 (1) Adjusted net income is the segment measure used for each business. The Allstate Corporation 3Q20 Supplement 4


 
The Allstate Corporation Condensed Consolidated Statements of Financial Position ($ in millions) Sept. 30, 2020 June 30, 2020 March 31, 2020 Dec. 31, 2019 Sept. 30, 2019 Assets Investments Fixed income securities, at fair value (1) $ 66,551 $ 64,448 $ 59,857 $ 59,044 $ 59,259 Equity securities, at fair value (2) 4,395 4,212 3,701 8,162 8,206 Mortgage loans, net 4,655 4,774 4,759 4,817 4,694 Limited partnership interests 7,232 6,941 7,087 8,078 7,990 Short-term, at fair value 4,559 5,344 5,671 4,256 5,254 Other, net 3,805 3,918 3,767 4,005 3,904 Total investments 91,197 89,637 84,842 88,362 89,307 Cash 370 547 338 338 587 Premium installment receivables, net 6,609 6,367 6,401 6,472 6,558 Deferred policy acquisition costs 4,661 4,683 4,742 4,699 4,683 Reinsurance and indemnification recoverables, net 9,097 9,290 9,214 9,211 9,363 Accrued investment income 616 605 593 600 613 Property and equipment, net 1,076 1,100 1,123 1,145 1,092 Goodwill 2,544 2,544 2,544 2,545 2,545 Other assets, net 3,516 3,587 3,876 3,534 3,383 Separate Accounts 3,064 2,906 2,434 3,044 2,942 Total assets $ 122,750 $ 121,266 $ 116,107 $ 119,950 $ 121,073 Liabilities Reserve for property and casualty insurance claims and claims expense $ 27,987 $ 27,426 $ 27,148 $ 27,712 $ 28,076 Reserve for life-contingent contract benefits 12,759 12,471 12,244 12,300 12,378 Contractholder funds 17,288 17,396 17,404 17,692 17,804 Unearned premiums 16,029 15,448 14,999 15,343 15,343 Claim payments outstanding 1,013 882 892 929 952 Deferred income taxes 905 842 331 1,154 1,079 Other liabilities and accrued expenses 9,807 10,275 9,849 9,147 9,729 Long-term debt 6,635 6,634 6,633 6,631 6,630 Separate Accounts 3,064 2,906 2,434 3,044 2,942 Total liabilities 95,487 94,280 91,934 93,952 94,933 Equity Preferred stock and additional capital paid-in (3)(4) 1,970 1,970 1,970 2,248 3,052 Common stock (5) 9 9 9 9 9 Additional capital paid-in 3,453 3,541 3,519 3,463 3,511 Retained income 50,336 49,380 48,326 48,074 46,527 Deferred ESOP expense - - - - (3) Treasury stock, at cost (6) (31,338) (30,542) (30,209) (29,746) (29,063) Accumulated other comprehensive income: Unrealized net capital gains and losses 2,744 2,602 530 1,887 2,023 Unrealized foreign currency translation adjustments (64) (89) (98) (59) (50) Unamortized pension and other postretirement prior service credit 153 115 126 122 134 Total accumulated other comprehensive income 2,833 2,628 558 1,950 2,107 Total shareholders' equity 27,263 26,986 24,173 25,998 26,140 Total liabilities and shareholders' equity $ 122,750 $ 121,266 $ 116,107 $ 119,950 $ 121,073 (1) Amortized cost, net was $62,267, $60,534, $58,945, $56,293 and $56,263 as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively. (2) Cost was $3,867, $3,817, $3,631, $6,568, and $6,930 as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively. (3) Preferred shares outstanding were 81.0 thousand at September 30, 2020, June 30, 2020 and March 31, 2020, 92.5 thousand at December 31, 2019 and 125.8 thousand at September 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 304,059,745; 312,720,127; 315,485,956; 318,791,191 and 324,988,765 as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively. (6) Treasury shares outstanding were 596 million, 587 million, 585 million, 581 million, and 575 million as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively. The Allstate Corporation 3Q20 Supplement 5


 
The Allstate Corporation Book Value per Common Share ($ in millions, except per share data) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2020 2020 2019 2019 2019 2019 Book value per common share Numerator: Common shareholders' equity (1) $ 25,293 $ 25,016 $ 22,203 $ 23,750 $ 23,088 $ 22,546 $ 21,488 Denominator: Common shares outstanding and dilutive potential common shares outstanding 307.0 315.8 318.7 324.8 330.6 335.1 337.9 Book value per common share $ 82.39 $ 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 $ 25,293 $ 25,016 $ 22,203 $ 23,750 $ 23,088 $ 22,546 $ 21,488 Less: Unrealized net capital gains and losses on fixed income securities 2,750 2,610 534 1,893 2,028 1,658 975 Adjusted common shareholders' equity $ 22,543 $ 22,406 $ 21,669 $ 21,857 $ 21,060 $ 20,888 $ 20,513 Denominator: Common shares outstanding and dilutive potential common shares outstanding 307.0 315.8 318.7 324.8 330.6 335.1 337.9 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 73.43 $ 70.95 $ 67.99 $ 67.29 $ 63.70 $ 62.33 $ 60.71 (1) Excludes equity related to preferred stock of $1,970 million at September 30, 2020, 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 3Q20 Supplement 6


 
The Allstate Corporation Return on Common Shareholders' Equity ($ in millions) Twelve months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2020 2020 2019 2019 2019 2019 Return on common shareholders' equity Numerator: Net income applicable to common shareholders (1)(2) $ 4,570 $ 4,333 $ 3,930 $ 4,678 $ 2,386 $ 2,439 $ 2,296 Denominator: Beginning common shareholders' equity $ 23,088 $ 22,546 $ 21,488 $ 19,382 $ 21,356 $ 20,819 $ 20,970 Ending common shareholders' equity (3) 25,293 25,016 22,203 23,750 23,088 22,546 21,488 Average common shareholders' equity (4) $ 24,191 $ 23,781 $ 21,846 $ 21,566 $ 22,222 $ 21,683 $ 21,229 Return on common shareholders' equity 18.9 % 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) $ 3,863 $ 3,886 $ 3,841 $ 3,477 $ 3,009 $ 2,822 $ 2,797 Denominator: Beginning common shareholders' equity $ 23,088 $ 22,546 $ 21,488 $ 19,382 $ 21,356 $ 20,819 $ 20,970 Less: Unrealized net capital gains and losses 2,023 1,654 972 (2) (16) 54 187 Adjusted beginning common shareholders' equity 21,065 20,892 20,516 19,384 21,372 20,765 20,783 Ending common shareholders' equity 25,293 25,016 22,203 23,750 23,088 22,546 21,488 Less: Unrealized net capital gains and losses 2,744 2,602 530 1,887 2,023 1,654 972 Adjusted ending common shareholders' equity 22,549 22,414 21,673 21,863 21,065 20,892 20,516 Average adjusted common shareholders' equity (4) $ 21,807 $ 21,653 $ 21,095 $ 20,624 $ 21,219 $ 20,829 $ 20,650 Adjusted net income return on common shareholders' equity * 17.7 % 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 September 30, 2020, 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 3Q20 Supplement 7


 
The Allstate Corporation Debt to Capital Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, ($ in millions) 2020 2020 2020 2019 2019 2019 2019 Debt Short-term debt $ - $ - $ - $ - $ - $ - $ - Long-term debt 6,635 6,634 6,633 6,631 6,630 6,628 6,453 Total debt $ 6,635 $ 6,634 $ 6,633 $ 6,631 $ 6,630 $ 6,628 $ 6,453 Capital resources Debt $ 6,635 $ 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 1,970 2,248 3,052 1,930 1,930 Common stock 9 9 9 9 9 9 9 Additional capital paid-in 3,453 3,541 3,519 3,463 3,511 3,477 3,291 Retained income 50,336 49,380 48,326 48,074 46,527 45,803 45,148 Deferred ESOP expense - - - - (3) (3) (3) Treasury stock (31,338) (30,542) (30,209) (29,746) (29,063) (28,500) (28,042) Unrealized net capital gains and losses 2,744 2,602 530 1,887 2,023 1,654 972 Unrealized foreign currency translation adjustments (64) (89) (98) (59) (50) (40) (44) Unamortized pension and other postretirement prior service credit 153 115 126 122 134 146 157 Total shareholders' equity 27,263 26,986 24,173 25,998 26,140 24,476 23,418 Total capital resources $ 33,898 $ 33,620 $ 30,806 $ 32,629 $ 32,770 $ 31,104 $ 29,871 Ratio of debt to shareholders' equity 24.3 % 24.6 % 27.4 % 25.5 % 25.4 % 27.1 % 27.6 % Ratio of debt to capital resources 19.6 % 19.7 % 21.5 % 20.3 % 20.2 % 21.3 % 21.6 % The Allstate Corporation 3Q20 Supplement 8


 
The Allstate Corporation Policies in Force and Other Statistics Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2020 2020 2019 2019 2019 2019 Policies in force statistics (in thousands) (1) Allstate Protection Allstate brand Auto 21,900 21,978 21,826 21,913 21,882 21,849 21,693 Homeowners 6,414 6,391 6,360 6,359 6,341 6,322 6,296 Landlord 643 650 654 659 664 671 677 Renters 1,751 1,739 1,730 1,729 1,727 1,716 1,703 Condominium 705 688 676 676 673 671 668 Other 1,356 1,338 1,325 1,326 1,325 1,317 1,306 Other personal lines 4,455 4,415 4,385 4,390 4,389 4,375 4,354 Commercial lines 219 221 224 227 228 229 230 Total 32,988 33,005 32,795 32,889 32,840 32,775 32,573 Encompass brand Auto 460 473 485 493 496 497 499 Homeowners 220 225 230 234 235 236 237 Other personal lines 73 74 75 76 77 77 78 Total 753 772 790 803 808 810 814 Allstate Protection policies in force 33,741 33,777 33,585 33,692 33,648 33,585 33,387 Service Businesses Allstate Protection Plans 125,831 120,301 107,124 99,632 89,783 83,968 77,866 Allstate Dealer Services 4,075 4,101 4,096 4,205 4,224 4,253 4,294 Allstate Roadside Services 558 562 576 599 617 635 649 Allstate Identity Protection (2) 2,490 2,312 1,932 1,511 1,318 1,260 1,211 Total 132,954 127,276 113,728 105,947 95,942 90,116 84,020 Allstate Life 1,874 1,892 1,902 1,923 1,926 1,933 1,936 Allstate Benefits 4,092 4,410 4,309 4,183 4,287 4,296 4,322 Allstate Annuities 181 185 188 192 197 201 206 Total policies in force 172,842 167,540 153,712 145,937 136,000 130,131 123,871 Agency data (3) Total Allstate agencies (4) 12,500 12,600 12,700 12,900 12,800 12,700 12,700 Licensed sales professionals (5) 24,400 24,700 25,800 27,100 26,800 26,700 26,800 Allstate independent agencies 4,800 4,400 3,800 3,400 3,300 3,200 3,000 Encompass independent agencies 3,100 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 September 30, 2020, total customer counts included free services provided to 202 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. The Allstate Corporation 3Q20 Supplement 9


 
The Allstate Corporation Premiums Written for Allstate Protection and Service Businesses As of or for the ($ in millions) As of or for the three months ended nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept 30, Sept 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Allstate Protection Allstate brand (1) Auto $ 6,192 $ 6,054 $ 6,091 $ 5,931 $ 6,123 $ 5,940 $ 5,928 $ 18,337 $ 17,991 Homeowners 2,234 2,178 1,645 1,888 2,178 2,109 1,589 6,057 5,876 Landlord 141 137 125 135 141 134 124 403 399 Renters 94 82 73 72 89 80 71 249 240 Condominium 93 87 64 70 78 75 62 244 215 Other 193 201 151 158 187 191 144 545 522 Other personal lines 521 507 413 435 495 480 401 1,441 1,376 Commercial lines 188 170 221 243 238 236 185 579 659 Total 9,135 8,909 8,370 8,497 9,034 8,765 8,103 26,414 25,902 Encompass brand Auto 134 136 118 127 147 146 120 388 413 Homeowners 105 106 87 94 110 111 86 298 307 Other personal lines 21 21 17 19 21 21 18 59 60 Total 260 263 222 240 278 278 224 745 780 Total Allstate Protection Auto 6,326 6,190 6,209 6,058 6,270 6,086 6,048 18,725 18,404 Homeowners 2,339 2,284 1,732 1,982 2,288 2,220 1,675 6,355 6,183 Other personal lines 542 528 430 454 516 501 419 1,500 1,436 Commercial lines 188 170 221 243 238 236 185 579 659 Total 9,395 9,172 8,592 8,737 9,312 9,043 8,327 27,159 26,682 Discontinued Lines and Coverages - - - - - - - - - Total Property-Liability $ 9,395 $ 9,172 $ 8,592 $ 8,737 $ 9,312 $ 9,043 $ 8,327 $ 27,159 $ 26,682 Service Businesses (2) Allstate Protection Plans $ 300 $ 310 $ 221 $ 278 $ 181 $ 167 $ 206 $ 831 $ 554 Allstate Dealer Services 139 113 107 123 126 120 99 359 345 Allstate Roadside Services 46 44 51 52 57 63 63 141 183 Total 485 467 379 453 364 350 368 1,331 1,082 Total premiums written $ 9,880 $ 9,639 $ 8,971 $ 9,190 $ 9,676 $ 9,393 $ 8,695 $ 28,490 $ 27,764 Non-proprietary premiums Ivantage (3) $ 1,936 $ 1,926 $ 1,916 $ 1,901 $ 1,871 $ 1,840 $ 1,806 $ 1,936 $ 1,871 Answer Financial (4) 148 146 144 134 153 150 145 438 448 (1) Canada premiums included in Allstate brand Auto $ 335 $ 297 $ 239 $ 253 $ 291 $ 287 $ 205 $ 871 $ 783 Homeowners 97 97 67 79 93 87 58 261 238 Other personal lines 34 35 24 30 32 28 20 93 80 Total $ 466 $ 429 $ 330 $ 362 $ 416 $ 402 $ 283 $ 1,225 $ 1,101 (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 September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019 were $47 million, $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 nine months ended September 30, 2020 were $17 million and $52 million, respectively. The Allstate Corporation 3Q20 Supplement 10


 
The Allstate Corporation Property-Liability Results ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept 30, Sept 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Premiums written $ 9,395 $ 9,172 $ 8,592 $ 8,737 $ 9,312 $ 9,043 $ 8,327 $ 27,159 $ 26,682 Decrease (increase) in unearned premiums (470) (349) 370 129 (538) (384) 179 (449) (743) Other - 40 (81) 7 8 22 1 (41) 31 Premiums earned 8,952 8,863 8,881 8,873 8,782 8,681 8,507 26,696 25,970 Other revenue 192 182 181 180 195 190 176 555 561 Claims and claims expense (5,968) (5,139) (5,251) (5,660) (5,960) (6,272) (5,730) (16,358) (17,962) Shelter-in-Place Payback expense - (738) (210) - - - - (948) - Amortization of deferred policy acquisition costs (1,158) (1,149) (1,167) (1,155) (1,167) (1,163) (1,164) (3,474) (3,494) Operating costs and expenses (1,078) (1,107) (1,085) (1,175) (1,114) (1,060) (1,071) (3,270) (3,245) Restructuring and related charges (187) (8) (4) (12) 1 (9) (18) (199) (26) Impairment of purchased intangibles - - - (51) - - - - - Underwriting income (1) 753 904 1,345 1,000 737 367 700 3,002 1,804 Net investment income 422 178 202 323 448 471 291 802 1,210 Income tax expense on operations (240) (209) (303) (270) (236) (179) (202) (752) (617) Realized capital gains (losses), after-tax 230 299 (82) 437 127 204 393 447 724 Net income applicable to common shareholders $ 1,165 $ 1,172 $ 1,162 $ 1,490 $ 1,076 $ 863 $ 1,182 $ 3,499 $ 3,121 Catastrophe losses $ 990 $ 1,186 $ 211 $ 295 $ 510 $ 1,072 $ 680 $ 2,387 $ 2,262 Amortization of purchased intangibles $ 3 $ 3 $ 1 $ 1 $ 1 $ 1 $ 1 $ 7 $ 3 Operating ratios Loss ratio 66.7 58.0 59.1 63.8 67.9 72.3 67.4 61.3 69.2 Expense ratio (2) 24.9 31.8 25.8 24.9 23.7 23.5 24.4 27.5 23.9 Combined ratio 91.6 89.8 84.9 88.7 91.6 95.8 91.8 88.8 93.1 Loss ratio 66.7 58.0 59.1 63.8 67.9 72.3 67.4 61.3 69.2 Less: effect of catastrophe losses 11.1 13.4 2.4 3.3 5.8 12.3 8.0 8.9 8.7 effect of prior year non-catastrophe reserve reestimates 0.8 (0.4) 0.3 (0.1) (0.5) (0.9) (0.4) 0.3 (0.6) Underlying loss ratio * 54.8 45.0 56.4 60.6 62.6 60.9 59.8 52.1 61.1 Reconciliation of combined ratio to underlying combined ratio Combined ratio 91.6 89.8 84.9 88.7 91.6 95.8 91.8 88.8 93.1 Effect of catastrophe losses (11.1) (13.4) (2.4) (3.3) (5.8) (12.3) (8.0) (8.9) (8.7) Effect of prior year non-catastrophe reserve reestimates (0.8) 0.4 (0.3) 0.1 0.5 0.9 0.4 (0.3) 0.6 Effect of impairment of purchased intangibles - - - (0.6) - - - - - Underlying combined ratio * 79.7 76.8 82.2 84.9 86.3 84.4 84.2 79.6 85.0 Effect of restructuring and related charges on combined ratio 2.1 0.1 - 0.1 - 0.1 0.2 0.7 0.1 Effect of Discontinued Lines and Coverages on combined ratio 1.5 - 0.1 - 1.1 0.1 0.1 0.6 0.5 Effect of Shelter-in-Place Payback expense on combined and expense ratios - 8.3 2.4 - - - - 3.6 - (1) Underwriting income (loss) Allstate brand $ 843 $ 901 $ 1,333 $ 987 $ 852 $ 364 $ 705 $ 3,077 $ 1,921 Encompass brand 43 6 14 17 (15) 7 (2) 63 (10) Answer Financial 2 - 1 (1) (1) (1) - 3 (2) Total underwriting income for Allstate Protection 888 907 1,348 1,003 836 370 703 3,143 1,909 Discontinued Lines and Coverages (135) (3) (3) (3) (99) (3) (3) (141) (105) Total underwriting income for Property-Liability $ 753 $ 904 $ 1,345 $ 1,000 $ 737 $ 367 $ 700 $ 3,002 $ 1,804 (2) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 3Q20 Supplement 11


 
The Allstate Corporation Property-Liability Catastrophe Losses ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Allstate Protection (1) Allstate brand Auto $ 99 $ 131 $ 13 $ 4 $ 139 $ 189 $ 71 $ 243 $ 399 Homeowners 808 901 172 255 299 796 514 1,881 1,609 Other personal lines 66 86 12 19 23 57 64 164 144 Commercial lines 12 9 2 5 2 4 1 23 7 Total 985 1,127 199 283 463 1,046 650 2,311 2,159 Encompass brand Auto 3 4 - - 4 3 3 7 10 Homeowners 3 52 11 12 41 22 25 66 88 Other personal lines (1) 3 1 - 2 1 2 3 5 Total 5 59 12 12 47 26 30 76 103 Allstate Protection Auto 102 135 13 4 143 192 74 250 409 Homeowners 811 953 183 267 340 818 539 1,947 1,697 Other personal lines 65 89 13 19 25 58 66 167 149 Commercial lines 12 9 2 5 2 4 1 23 7 Total 990 1,186 211 295 510 1,072 680 2,387 2,262 Discontinued Lines and Coverages - - - - - - - - - Total Property-Liability $ 990 $ 1,186 $ 211 $ 295 $ 510 $ 1,072 $ 680 $ 2,387 $ 2,262 Effect of catastrophe losses on combined ratio (2) Allstate Protection Auto 1.2 1.5 0.2 - 1.6 2.2 0.9 0.9 1.6 Homeowners 9.1 10.8 2.1 3.0 3.9 9.4 6.3 7.3 6.5 Other personal lines 0.7 1.0 0.1 0.2 0.3 0.7 0.8 0.6 0.6 Commercial lines 0.1 0.1 - 0.1 - - - 0.1 - Total 11.1 13.4 2.4 3.3 5.8 12.3 8.0 8.9 8.7 10-year average effect of catastrophe losses on combined ratio 7.4 14.4 6.1 5.9 6.9 14.0 6.8 8.4 8.5 (1) Includes $452 million for Allstate brand and $43 million for Encompass of favorable reserve reestimates for the three months ended September 30, 2020, related to the PG&E Corporation and Southern California Edison subrogation settlements, which primarily impacted homeowners. (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 3Q20 Supplement 12


 
The Allstate Corporation Property-Liability Prior Year Reserve Reestimates ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Prior year reserve reestimates (1) Allstate Protection (2) Allstate brand Auto $ (61) $ (53) $ 12 $ (12) $ (152) $ (95) $ (54) $ (102) $ (301) Homeowners (418) 23 (6) 6 (1) - 45 (401) 44 Other personal lines (52) (2) (4) (9) 10 (1) 10 (58) 19 Commercial lines 2 21 6 - - 13 4 29 17 Total (529) (11) 8 (15) (143) (83) 5 (532) (221) Encompass brand Auto 1 (1) 1 - (1) (9) - 1 (10) Homeowners (38) - (1) - 3 4 8 (39) 15 Other personal lines (6) - (2) - (1) 2 (3) (8) (2) Total (43) (1) (2) - 1 (3) 5 (46) 3 Total Allstate Protection Auto (60) (54) 13 (12) (153) (104) (54) (101) (311) Homeowners (456) 23 (7) 6 2 4 53 (440) 59 Other personal lines (58) (2) (6) (9) 9 1 7 (66) 17 Commercial lines 2 21 6 - - 13 4 29 17 Total (572) (12) 6 (15) (142) (86) 10 (578) (218) Discontinued Lines and Coverages 135 2 2 2 98 3 2 139 103 Total Property-Liability $ (437) $ (10) $ 8 $ (13) $ (44) $ (83) $ 12 $ (439) $ (115) Effect of prior year reserve reestimates on combined ratio (1)(3) Allstate Protection Auto (0.7) (0.6) 0.2 (0.2) (1.7) (1.2) (0.6) (0.4) (1.2) Homeowners (5.1) 0.3 (0.1) 0.1 - - 0.6 (1.7) 0.2 Other personal lines (0.6) - (0.1) (0.1) 0.1 - 0.1 (0.2) 0.1 Commercial lines - 0.2 0.1 - - 0.2 - 0.1 - Total (6.4) (0.1) 0.1 (0.2) (1.6) (1.0) 0.1 (2.2) (0.9) Discontinued Lines and Coverages 1.5 - - - 1.1 0.1 0.1 0.6 0.5 Total Property-Liability (4.9) (0.1) 0.1 (0.2) (0.5) (0.9) 0.2 (1.6) (0.4) Allstate Protection by brand Allstate brand (5.9) (0.1) 0.1 (0.2) (1.6) (1.0) - (2.0) (0.9) Encompass brand (0.5) - - - - - 0.1 (0.2) - Total (6.4) (0.1) 0.1 (0.2) (1.6) (1.0) 0.1 (2.2) (0.9) (1) Favorable reserve reestimates are shown in parentheses. (2) Includes $452 million for Allstate brand and $43 million for Encompass of favorable reserve reestimates for the three months ended September 30, 2020, related to the PG&E Corporation and Southern California Edison subrogation settlements, which primarily impacted homeowners. (3) 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 3Q20 Supplement 13


 
The Allstate Corporation Property-Liability Catastrophe Losses included in Prior Year Reserve Reestimates ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Allstate Protection (1)(2) Allstate brand Auto $ (25) $ (6) $ (8) $ (8) $ (2) $ (6) $ (1) $ (39) $ (9) Homeowners (400) 27 (7) 8 (1) 7 42 (380) 48 Other personal lines (37) 2 (4) (4) (1) (3) 9 (39) 5 Commercial lines (2) 2 1 - (1) 1 (1) 1 (1) Total (464) 25 (18) (4) (5) (1) 49 (457) 43 Encompass brand Auto (1) - (1) - - - - (2) - Homeowners (40) - (1) (1) 3 4 4 (41) 11 Other personal lines (2) - - - (1) - - (2) (1) Total (43) - (2) (1) 2 4 4 (45) 10 Total Allstate Protection Auto (26) (6) (9) (8) (2) (6) (1) (41) (9) Homeowners (440) 27 (8) 7 2 11 46 (421) 59 Other personal lines (39) 2 (4) (4) (2) (3) 9 (41) 4 Commercial lines (2) 2 1 - (1) 1 (1) 1 (1) Total (507) 25 (20) (5) (3) 3 53 (502) 53 Discontinued Lines and Coverages - - - - - - - - - Total Property-Liability $ (507) $ 25 $ (20) $ (5) $ (3) $ 3 $ 53 $ (502) $ 53 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio (1)(3) Allstate Protection Auto (0.3) - (0.1) (0.1) - (0.1) - (0.2) - Homeowners (4.9) 0.3 (0.1) 0.1 - 0.1 0.5 (1.6) 0.2 Other personal lines (0.5) - - (0.1) - - 0.1 (0.1) - Commercial lines - - - - - - - - - Total (5.7) 0.3 (0.2) (0.1) - - 0.6 (1.9) 0.2 Allstate Protection by brand Allstate brand (5.2) 0.3 (0.2) (0.1) - - 0.6 (1.7) 0.2 Encompass brand (0.5) - - - - - - (0.2) - Total (5.7) 0.3 (0.2) (0.1) - - 0.6 (1.9) 0.2 (1) Favorable reserve reestimates are shown in parentheses. (2) Includes $452 million for Allstate brand and $43 million for Encompass of favorable reserve reestimates for the three months ended September 30, 2020, related to the PG&E Corporation and Southern California Edison subrogation settlements, which primarily impacted homeowners. (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. The Allstate Corporation 3Q20 Supplement 14


 
The Allstate Corporation Allstate Brand Profitability Measures ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Net premiums written $ 9,135 $ 8,909 $ 8,370 $ 8,497 $ 9,034 $ 8,765 $ 8,103 $ 26,414 $ 25,902 Net premiums earned Auto $ 6,081 $ 6,037 $ 6,020 $ 6,009 $ 5,944 $ 5,900 $ 5,796 $ 18,138 $ 17,640 Homeowners 1,974 1,955 1,936 1,922 1,896 1,859 1,836 5,865 5,591 Other personal lines 466 459 451 451 449 442 439 1,376 1,330 Commercial lines 183 159 218 237 236 226 183 560 645 Total $ 8,704 $ 8,610 $ 8,625 $ 8,619 $ 8,525 $ 8,427 $ 8,254 $ 25,939 $ 25,206 Other revenue Auto $ 75 $ 71 $ 81 $ 78 $ 80 $ 77 $ 77 $ 227 $ 234 Homeowners 10 11 11 11 12 11 11 32 34 Other personal lines 40 35 29 31 37 35 28 104 100 Commercial lines 1 2 1 2 1 2 1 4 4 Other business lines 47 45 40 42 46 46 38 132 130 Total $ 173 $ 164 $ 162 $ 164 $ 176 $ 171 $ 155 $ 499 $ 502 Incurred losses Auto $ 3,631 $ 2,914 $ 3,737 $ 4,117 $ 4,093 $ 4,085 $ 3,852 $ 10,282 $ 12,030 Homeowners 1,625 1,651 940 974 1,102 1,539 1,269 4,216 3,910 Other personal lines 301 293 244 227 277 282 294 838 853 Commercial lines 153 125 171 185 197 196 139 449 532 Total $ 5,710 $ 4,983 $ 5,092 $ 5,503 $ 5,669 $ 6,102 $ 5,554 $ 15,785 $ 17,325 Expenses Auto $ 1,628 $ 2,228 $ 1,705 $ 1,616 $ 1,511 $ 1,497 $ 1,510 $ 5,561 $ 4,518 Homeowners 452 433 440 465 444 421 432 1,325 1,297 Other personal lines 171 153 148 159 156 147 143 472 446 Commercial lines 45 47 43 41 39 39 38 135 116 Other business lines 28 29 26 12 30 28 27 83 85 Total $ 2,324 $ 2,890 $ 2,362 $ 2,293 $ 2,180 $ 2,132 $ 2,150 $ 7,576 $ 6,462 Underwriting income (loss) Auto $ 897 $ 966 $ 659 $ 354 $ 420 $ 395 $ 511 $ 2,522 $ 1,326 Homeowners (93) (118) 567 494 362 (90) 146 356 418 Other personal lines 34 48 88 96 53 48 30 170 131 Commercial lines (14) (11) 5 13 1 (7) 7 (20) 1 Other business lines (1) 19 16 14 30 16 18 11 49 45 Total $ 843 $ 901 $ 1,333 $ 987 $ 852 $ 364 $ 705 $ 3,077 $ 1,921 Loss ratio 65.6 57.9 59.0 63.8 66.5 72.4 67.3 60.8 68.7 Expense ratio (2) 24.7 31.6 25.5 24.7 23.5 23.3 24.2 27.3 23.7 Combined ratio 90.3 89.5 84.5 88.5 90.0 95.7 91.5 88.1 92.4 Loss ratio 65.6 57.9 59.0 63.8 66.5 72.4 67.3 60.8 68.7 Less: effect of catastrophe losses 11.3 13.1 2.3 3.3 5.4 12.4 7.9 8.9 8.6 effect of prior year non-catastrophe reserve reestimates (0.7) (0.4) 0.3 (0.2) (1.6) (0.9) (0.5) (0.3) (1.1) Underlying loss ratio * 55.0 45.2 56.4 60.7 62.7 60.9 59.9 52.2 61.2 Reconciliation of combined ratio to underlying combined ratio Combined ratio 90.3 89.5 84.5 88.5 90.0 95.7 91.5 88.1 92.4 Effect of catastrophe losses (11.3) (13.1) (2.3) (3.3) (5.4) (12.4) (7.9) (8.9) (8.6) Effect of prior year non-catastrophe reserve reestimates 0.7 0.4 (0.3) 0.2 1.6 0.9 0.5 0.3 1.1 Effect of impairment of purchased intangibles - - - (0.6) - - - - - Underlying combined ratio * 79.7 76.8 81.9 84.8 86.2 84.2 84.1 79.5 84.9 Effect of prior year reserve reestimates on combined ratio (6.1) (0.1) 0.1 (0.2) (1.7) (0.9) 0.1 (2.1) (0.9) Effect of advertising expenses on combined ratio 2.3 2.4 2.3 3.0 2.4 2.3 2.3 2.4 2.3 Effect of Shelter-in-Place Payback expense on combined and expense ratios - 8.4 2.4 - - - - 3.6 - (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 3Q20 Supplement 15


 
The Allstate Corporation Allstate Brand Statistics (1) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 New issued applications (in thousands) (2) Auto 888 868 881 813 902 900 920 2,637 2,722 Homeowners 247 230 204 202 235 236 204 681 675 Average premium - gross written ($) (3) Auto 621 612 616 612 607 598 596 616 600 Homeowners 1,334 1,324 1,310 1,300 1,304 1,292 1,263 1,324 1,288 Annualized average premium - net earned ($) (4) Auto 1,111 1,099 1,103 1,097 1,087 1,080 1,069 1,104 1,075 Homeowners 1,231 1,224 1,218 1,209 1,196 1,176 1,166 1,219 1,176 Average underlying loss (incurred pure premium) and expense * ($) (5) Auto 935 908 976 1,022 1,012 989 972 940 988 Homeowners 795 737 753 739 779 734 745 758 750 Renewal ratio (%) (6) Auto 87.9 87.6 87.4 87.5 87.9 88.3 88.2 87.6 88.2 Homeowners 87.8 87.3 87.6 88.1 88.4 88.1 88.3 87.6 88.3 Total brand rate changes (%) (7) Auto - 0.2 0.5 0.8 0.6 1.0 0.6 0.7 2.2 Homeowners 0.5 0.1 1.2 0.7 0.3 0.2 2.1 1.8 2.6 Auto property damage (% change year-over-year) Gross claim frequency (8) (28.6) (46.4) (12.2) (1.8) 2.6 (0.3) (0.9) (29.2) 0.5 Paid claim severity (9) 7.9 20.4 8.1 6.2 5.3 8.7 5.7 11.5 6.5 Homeowners excluding catastrophe losses (% change year-over-year) Gross claim frequency (8) 3.5 (8.6) (13.2) (11.1) (8.8) (2.9) - (5.9) (4.1) Paid claim severity (9) 3.3 9.5 15.9 22.9 13.4 11.7 0.7 9.1 8.8 (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) 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. (5) Average underlying loss (incurred pure premium) and expense is calculated as the underlying combined ratio multiplied by the annualized average premium. (6) 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. (7) 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. 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. (8) 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. It 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 gross claim frequency is calculated as the amount of increase or decrease in the gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year 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 3Q20 Supplement 16


 
The Allstate Corporation Encompass Brand Profitability Measures and Statistics As of or for the ($ in millions, except ratios) As of or for the three months ended nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Net premiums written $ 260 $ 263 $ 222 $ 240 $ 278 $ 278 $ 224 $ 745 $ 780 Net premiums earned Auto $ 129 $ 135 $ 135 $ 134 $ 136 $ 135 $ 134 $ 399 $ 405 Homeowners 99 99 101 100 101 99 99 299 299 Other personal lines 20 19 20 20 20 20 20 59 60 Total $ 248 $ 253 $ 256 $ 254 $ 257 $ 254 $ 253 $ 757 $ 764 Other revenue Auto $ 1 $ - $ 1 $ - $ 2 $ - $ 1 $ 2 $ 3 Homeowners - 1 - 1 - 1 - 1 1 Total $ 1 $ 1 $ 1 $ 1 $ 2 $ 1 $ 1 $ 3 $ 4 Incurred losses Auto $ 77 $ 46 $ 90 $ 88 $ 94 $ 87 $ 91 $ 213 $ 272 Homeowners 41 90 55 52 82 66 72 186 220 Other personal lines 5 18 12 15 17 14 11 35 42 Total $ 123 $ 154 $ 157 $ 155 $ 193 $ 167 $ 174 $ 434 $ 534 Expenses Auto $ 44 $ 57 $ 48 $ 44 $ 43 $ 42 $ 45 $ 149 $ 130 Homeowners 32 31 32 32 32 32 31 95 95 Other personal lines 7 6 6 7 6 7 6 19 19 Total $ 83 $ 94 $ 86 $ 83 $ 81 $ 81 $ 82 $ 263 $ 244 Underwriting income (loss) Auto $ 9 $ 32 $ (2) $ 2 $ 1 $ 6 $ (1) $ 39 $ 6 Homeowners 26 (21) 14 17 (13) 2 (4) 19 (15) Other personal lines 8 (5) 2 (2) (3) (1) 3 5 (1) Total $ 43 $ 6 $ 14 $ 17 $ (15) $ 7 $ (2) $ 63 $ (10) Loss ratio 49.6 60.9 61.3 61.0 75.1 65.7 68.8 57.3 69.9 Expense ratio (1) 33.1 36.7 33.2 32.3 30.7 31.5 32.0 34.4 31.4 Combined ratio 82.7 97.6 94.5 93.3 105.8 97.2 100.8 91.7 101.3 Loss ratio 49.6 60.9 61.3 61.0 75.1 65.7 68.8 57.3 69.9 Less: effect of catastrophe losses 2.1 23.3 4.7 4.7 18.3 10.2 11.9 10.0 13.5 effect of prior year non-catastrophe reserve reestimates - (0.4) - 0.4 (0.4) (2.8) 0.4 (0.1) (0.9) Underlying loss ratio * 47.5 38.0 56.6 55.9 57.2 58.3 56.5 47.4 57.3 Reconciliation of combined ratio to underlying combined ratio Combined ratio 82.7 97.6 94.5 93.3 105.8 97.2 100.8 91.7 101.3 Effect of catastrophe losses (2.1) (23.3) (4.7) (4.7) (18.3) (10.2) (11.9) (10.0) (13.5) Effect of prior year non-catastrophe reserve reestimates - 0.4 - (0.4) 0.4 2.8 (0.4) 0.1 0.9 Underlying combined ratio * 80.6 74.7 89.8 88.2 87.9 89.8 88.5 81.8 88.7 Effect of prior year reserve reestimates on combined ratio (17.3) (0.4) (0.8) - 0.4 (1.2) 2.0 (6.1) 0.4 Effect of Shelter-in-Place Payback expense on combined and expense ratios - 6.3 2.0 - - - - 2.8 - Policies in force (in thousands) Auto 460 473 485 493 496 497 499 460 496 Homeowners 220 225 230 234 235 236 237 220 235 Other personal lines 73 74 75 76 77 77 78 73 77 753 772 790 803 808 810 814 753 808 New issued applications (in thousands) Auto 14 14 16 19 21 22 20 44 63 Homeowners 9 8 8 9 12 12 9 25 33 Average premium - gross written ($) Auto (12-month policy) 1,142 1,166 1,162 1,134 1,137 1,130 1,134 1,156 1,134 Homeowners (12-month policy) 1,902 1,901 1,880 1,823 1,807 1,782 1,768 1,895 1,787 Renewal ratio (%) Auto 76.7 76.5 77.5 77.8 78.9 78.1 77.7 76.9 78.3 Homeowners 80.7 80.5 81.9 82.1 83.0 82.5 82.1 81.0 82.6 (1) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 3Q20 Supplement 17


 
The Allstate Corporation Auto Profitability Measures by Brand ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Allstate brand auto Net premiums written $ 6,192 $ 6,054 $ 6,091 $ 5,931 $ 6,123 $ 5,940 $ 5,928 $ 18,337 $ 17,991 Net premiums earned $ 6,081 $ 6,037 $ 6,020 $ 6,009 $ 5,944 $ 5,900 $ 5,796 $ 18,138 $ 17,640 Other revenue 75 71 81 78 80 77 77 227 234 Incurred losses (3,631) (2,914) (3,737) (4,117) (4,093) (4,085) (3,852) (10,282) (12,030) Expenses (1,628) (2,228) (1,705) (1,616) (1,511) (1,497) (1,510) (5,561) (4,518) Underwriting income $ 897 $ 966 $ 659 $ 354 $ 420 $ 395 $ 511 $ 2,522 $ 1,326 Loss ratio 59.7 48.3 62.1 68.5 68.8 69.2 66.5 56.7 68.2 Less: effect of catastrophe losses 1.6 2.2 0.2 0.1 2.3 3.2 1.2 1.3 2.3 effect of prior year non-catastrophe reserve reestimates (0.6) (0.8) 0.4 - (2.5) (1.5) (0.9) (0.3) (1.7) Underlying loss ratio * 58.7 46.9 61.5 68.4 69.0 67.5 66.2 55.7 67.6 Expense ratio (1) 25.5 35.7 27.0 25.6 24.1 24.1 24.7 29.4 24.3 Combined ratio 85.2 84.0 89.1 94.1 92.9 93.3 91.2 86.1 92.5 Effect of catastrophe losses (1.6) (2.2) (0.2) (0.1) (2.3) (3.2) (1.2) (1.3) (2.3) Effect of prior year non-catastrophe reserve reestimates 0.6 0.8 (0.4) - 2.5 1.5 0.9 0.3 1.7 Effect of impairment of purchased intangibles - - - (0.8) - - - - - Underlying combined ratio * 84.2 82.6 88.5 93.2 93.1 91.6 90.9 85.1 91.9 Effect of Shelter-in-Place Payback expense on combined and expense ratios - 11.9 3.4 - - - - 5.1 - Encompass brand auto Net premiums written $ 134 $ 136 $ 118 $ 127 $ 147 $ 146 $ 120 $ 388 $ 413 Net premiums earned $ 129 $ 135 $ 135 $ 134 $ 136 $ 135 $ 134 $ 399 $ 405 Other revenue 1 - 1 - 2 - 1 2 3 Incurred losses (77) (46) (90) (88) (94) (87) (91) (213) (272) Expenses (44) (57) (48) (44) (43) (42) (45) (149) (130) Underwriting income (loss) $ 9 $ 32 $ (2) $ 2 $ 1 $ 6 $ (1) $ 39 $ 6 Loss ratio 59.7 34.1 66.7 65.7 69.1 64.5 67.9 53.4 67.2 Less: effect of catastrophe losses 2.3 3.0 - - 2.9 2.2 2.2 1.8 2.5 effect of prior year non-catastrophe reserve reestimates 1.6 (0.8) 1.5 - (0.7) (6.6) - 0.7 (2.5) Underlying loss ratio * 55.8 31.9 65.2 65.7 66.9 68.9 65.7 50.9 67.2 Expense ratio (1) 33.3 42.2 34.8 32.8 30.2 31.1 32.8 36.8 31.3 Combined ratio 93.0 76.3 101.5 98.5 99.3 95.6 100.7 90.2 98.5 Effect of catastrophe losses (2.3) (3.0) - - (2.9) (2.2) (2.2) (1.8) (2.5) Effect of prior year non-catastrophe reserve reestimates (1.6) 0.8 (1.5) - 0.7 6.6 - (0.7) 2.5 Underlying combined ratio * 89.1 74.1 100.0 98.5 97.1 100.0 98.5 87.7 98.5 Effect of Shelter-in-Place Payback expense on combined and expense ratios - 11.9 3.7 - - - - 5.3 - (1) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 3Q20 Supplement 18


 
The Allstate Corporation Homeowners Profitability Measures by Brand ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Allstate brand homeowners Net premiums written $ 2,234 $ 2,178 $ 1,645 $ 1,888 $ 2,178 $ 2,109 $ 1,589 $ 6,057 $ 5,876 Net premiums earned $ 1,974 $ 1,955 $ 1,936 $ 1,922 $ 1,896 $ 1,859 $ 1,836 $ 5,865 $ 5,591 Other revenue 10 11 11 11 12 11 11 32 34 Incurred losses (1,625) (1,651) (940) (974) (1,102) (1,539) (1,269) (4,216) (3,910) Expenses (452) (433) (440) (465) (444) (421) (432) (1,325) (1,297) Underwriting income (loss) $ (93) $ (118) $ 567 $ 494 $ 362 $ (90) $ 146 $ 356 $ 418 Loss ratio 82.3 84.4 48.5 50.7 58.1 82.8 69.1 71.9 69.9 Less: effect of catastrophe losses 40.9 46.1 8.9 13.3 15.8 42.8 28.0 32.1 28.8 effect of prior year non-catastrophe reserve reestimates (0.9) (0.3) - (0.1) - (0.4) 0.1 (0.4) (0.1) Underlying loss ratio * 42.3 38.6 39.6 37.5 42.3 40.4 41.0 40.2 41.2 Expense ratio (1) 22.4 21.6 22.2 23.6 22.8 22.0 22.9 22.0 22.6 Combined ratio 104.7 106.0 70.7 74.3 80.9 104.8 92.0 93.9 92.5 Effect of catastrophe losses (40.9) (46.1) (8.9) (13.3) (15.8) (42.8) (28.0) (32.1) (28.8) Effect of prior year non-catastrophe reserve reestimates 0.9 0.3 - 0.1 - 0.4 (0.1) 0.4 0.1 Effect of amortization of purchased intangibles (0.1) - - - - - - - - Underlying combined ratio * 64.6 60.2 61.8 61.1 65.1 62.4 63.9 62.2 63.8 Encompass brand homeowners Net premiums written $ 105 $ 106 $ 87 $ 94 $ 110 $ 111 $ 86 $ 298 $ 307 Net premiums earned $ 99 $ 99 $ 101 $ 100 $ 101 $ 99 $ 99 $ 299 $ 299 Other revenue - 1 - 1 - 1 - 1 1 Incurred losses (41) (90) (55) (52) (82) (66) (72) (186) (220) Expenses (32) (31) (32) (32) (32) (32) (31) (95) (95) Underwriting income (loss) $ 26 $ (21) $ 14 $ 17 $ (13) $ 2 $ (4) $ 19 $ (15) Loss ratio 41.4 90.9 54.4 52.0 81.2 66.7 72.7 62.2 73.6 Less: effect of catastrophe losses 3.0 52.5 10.9 12.0 40.6 22.2 25.3 22.1 29.4 effect of prior year non-catastrophe reserve reestimates 2.0 - - 1.0 - - 4.0 0.6 1.4 Underlying loss ratio * 36.4 38.4 43.5 39.0 40.6 44.5 43.4 39.5 42.8 Expense ratio (1) 32.3 30.3 31.7 31.0 31.7 31.3 31.3 31.4 31.4 Combined ratio 73.7 121.2 86.1 83.0 112.9 98.0 104.0 93.6 105.0 Effect of catastrophe losses (3.0) (52.5) (10.9) (12.0) (40.6) (22.2) (25.3) (22.1) (29.4) Effect of prior year non-catastrophe reserve reestimates (2.0) - - (1.0) - - (4.0) (0.6) (1.4) Underlying combined ratio * 68.7 68.7 75.2 70.0 72.3 75.8 74.7 70.9 74.2 (1) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 3Q20 Supplement 19


 
The Allstate Corporation Other Personal Lines Profitability Measures by Brand (1) ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Allstate brand other personal lines Net premiums written $ 521 $ 507 $ 413 $ 435 $ 495 $ 480 $ 401 $ 1,441 $ 1,376 Net premiums earned $ 466 $ 459 $ 451 $ 451 $ 449 $ 442 $ 439 $ 1,376 $ 1,330 Other revenue 40 35 29 31 37 35 28 104 100 Incurred losses (301) (293) (244) (227) (277) (282) (294) (838) (853) Expenses (171) (153) (148) (159) (156) (147) (143) (472) (446) Underwriting income $ 34 $ 48 $ 88 $ 96 $ 53 $ 48 $ 30 $ 170 $ 131 Loss ratio 64.6 63.8 54.1 50.3 61.7 63.8 67.0 60.9 64.2 Less: effect of catastrophe losses 14.2 18.7 2.7 4.2 5.1 12.9 14.6 11.9 10.8 effect of prior year non-catastrophe reserve reestimates (3.3) (0.9) - (1.1) 2.5 0.4 0.2 (1.4) 1.1 Underlying loss ratio * 53.7 46.0 51.4 47.2 54.1 50.5 52.2 50.4 52.3 Expense ratio (2) 28.1 25.7 26.4 28.4 26.5 25.3 26.2 26.7 26.0 Combined ratio 92.7 89.5 80.5 78.7 88.2 89.1 93.2 87.6 90.2 Effect of catastrophe losses (14.2) (18.7) (2.7) (4.2) (5.1) (12.9) (14.6) (11.9) (10.8) Effect of prior year non-catastrophe reserve reestimates 3.3 0.9 - 1.1 (2.5) (0.4) (0.2) 1.4 (1.1) Underlying combined ratio * 81.8 71.7 77.8 75.6 80.6 75.8 78.4 77.1 78.3 Encompass brand other personal lines Net premiums written $ 21 $ 21 $ 17 $ 19 $ 21 $ 21 $ 18 $ 59 $ 60 Net premiums earned $ 20 $ 19 $ 20 $ 20 $ 20 $ 20 $ 20 $ 59 $ 60 Incurred losses (5) (18) (12) (15) (17) (14) (11) (35) (42) Expenses (7) (6) (6) (7) (6) (7) (6) (19) (19) Underwriting income (loss) $ 8 $ (5) $ 2 $ (2) $ (3) $ (1) $ 3 $ 5 $ (1) Loss ratio 25.0 94.7 60.0 75.0 85.0 70.0 55.0 59.3 70.0 Less: effect of catastrophe losses (5.0) 15.8 5.0 - 10.0 5.0 10.0 5.1 8.3 effect of prior year non-catastrophe reserve reestimates (20.0) - (10.0) - - 10.0 (15.0) (10.2) (1.6) Underlying loss ratio * 50.0 78.9 65.0 75.0 75.0 55.0 60.0 64.4 63.3 Expense ratio (2) 35.0 31.6 30.0 35.0 30.0 35.0 30.0 32.2 31.7 Combined ratio 60.0 126.3 90.0 110.0 115.0 105.0 85.0 91.5 101.7 Effect of catastrophe losses 5.0 (15.8) (5.0) - (10.0) (5.0) (10.0) (5.1) (8.3) Effect of prior year non-catastrophe reserve reestimates 20.0 - 10.0 - - (10.0) 15.0 10.2 1.6 Underlying combined ratio * 85.0 110.5 95.0 110.0 105.0 90.0 90.0 96.6 95.0 (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 3Q20 Supplement 20


 
The Allstate Corporation Commercial Lines Profitability Measures (1) ($ in millions, except ratios) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Net premiums written $ 188 $ 170 $ 221 $ 243 $ 238 $ 236 $ 185 $ 579 $ 659 Net premiums earned $ 183 $ 159 $ 218 $ 237 $ 236 $ 226 $ 183 $ 560 $ 645 Other revenue 1 2 1 2 1 2 1 4 4 Incurred losses (153) (125) (171) (185) (197) (196) (139) (449) (532) Expenses (45) (47) (43) (41) (39) (39) (38) (135) (116) Underwriting income (loss) $ (14) $ (11) $ 5 $ 13 $ 1 $ (7) $ 7 $ (20) $ 1 Loss ratio 83.6 78.6 78.4 78.1 83.5 86.7 76.0 80.2 82.5 Expense ratio (2) 24.1 28.3 19.3 16.4 16.1 16.4 20.2 23.4 17.3 Combined ratio 107.7 106.9 97.7 94.5 99.6 103.1 96.2 103.6 99.8 Reconciliation of combined ratio to underlying combined ratio Combined ratio 107.7 106.9 97.7 94.5 99.6 103.1 96.2 103.6 99.8 Effect of catastrophe losses (6.6) (5.7) (0.9) (2.1) (0.9) (1.8) (0.5) (4.1) (1.0) Effect of prior year non-catastrophe reserve reestimates (2.2) (11.9) (2.3) - (0.4) (5.3) (2.8) (5.0) (2.8) Underlying combined ratio * 98.9 89.3 94.5 92.4 98.3 96.0 92.9 94.5 96.0 Effect of prior year reserve reestimates on combined ratio 1.1 13.2 2.8 - - 5.7 2.2 5.2 2.6 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio (1.1) 1.3 0.5 - (0.4) 0.4 (0.6) 0.2 (0.2) Effect of Shelter-in-Place Payback expense on combined and expense ratios - 2.5 - - - - - 0.7 - (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 3Q20 Supplement 21


 
The Allstate Corporation Discontinued Lines and Coverages Reserves ($ in millions) Three months ended Twelve months ended December 31, Sept. 30, June 30, March 31, (net of reinsurance) 2020 2020 2020 2019 2018 2017 2016 2015 Asbestos Beginning reserves $ 779 $ 790 $ 810 $ 866 $ 884 $ 912 $ 960 $ 1,014 Incurred claims and claims expense 78 - - 28 44 61 67 39 Claims and claims expense paid (13) (11) (20) (84) (62) (89) (115) (93) Ending reserves $ 844 $ 779 $ 790 $ 810 $ 866 $ 884 $ 912 $ 960 Claims and claims expense paid as a percent of ending reserves 1.5 % 1.4 % 2.5 % 10.4 % 7.2 % 10.1 % 12.6 % 9.7 % Environmental Beginning reserves $ 171 $ 175 $ 179 $ 170 $ 166 $ 179 $ 179 $ 203 Incurred claims and claims expense 44 - - 36 20 10 23 1 Claims and claims expense paid (5) (4) (4) (27) (16) (23) (23) (25) Ending reserves $ 210 $ 171 $ 175 $ 179 $ 170 $ 166 $ 179 $ 179 Claims and claims expense paid as a percent of ending reserves 2.4 % 2.3 % 2.3 % 15.1 % 9.4 % 13.9 % 12.8 % 14.0 % Other (1) Beginning reserves $ 370 $ 370 $ 376 $ 355 $ 357 $ 354 $ 377 $ 395 Incurred claims and claims expense 13 2 2 41 23 25 15 13 Claims and claims expense paid (5) (2) (8) (20) (25) (22) (38) (31) Ending reserves $ 378 $ 370 $ 370 $ 376 $ 355 $ 357 $ 354 $ 377 Claims and claims expense paid as a percent of ending reserves 1.3 % 0.5 % 2.2 % 5.3 % 7.0 % 6.2 % 10.7 % 8.2 % Total (2) Beginning reserves $ 1,320 $ 1,335 $ 1,365 $ 1,391 $ 1,407 $ 1,445 $ 1,516 $ 1,612 Incurred claims and claims expense 135 2 2 105 87 96 105 53 Claims and claims expense paid (23) (17) (32) (131) (103) (134) (176) (149) Ending reserves $ 1,432 $ 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 1.6 % 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 13.0, 11.1, 10.1, 9.2, 9.2 and 10.6 for the annualized nine 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 nine months calculation, average net payments are calculated using the annualized 2020 net payments plus the preceding two-year periods. The Allstate Corporation 3Q20 Supplement 22


 
The Allstate Corporation Service Businesses Segment Results (1) ($ in millions) Three months ended Nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Service Businesses Net premiums written $ 485 $ 467 $ 379 $ 453 $ 364 $ 350 $ 368 $ 1,331 $ 1,082 Net premiums earned $ 384 $ 360 $ 354 $ 321 $ 312 $ 305 $ 295 $ 1,098 $ 912 Other revenue 52 51 52 46 47 48 47 155 142 Intersegment insurance premiums and service fees 36 35 38 44 44 33 33 109 110 Net investment income 12 11 10 12 11 10 9 33 30 Realized capital gains (losses) 14 19 (24) 11 4 9 8 9 21 Claims and claims expense (107) (85) (92) (92) (93) (86) (92) (284) (271) Amortization of deferred policy acquisition costs (169) (160) (153) (143) (139) (134) (127) (482) (400) Operating costs and expenses (160) (163) (161) (181) (171) (158) (151) (484) (480) Restructuring and related charges 2 (3) - - (1) 1 - (1) - Amortization of purchased intangibles (28) (26) (27) (29) (31) (31) (31) (81) (93) Impairment of purchased intangibles - - - - - (55) - - (55) Income tax (expense) benefit (6) (7) - (1) 4 12 3 (13) 19 Net income (loss) applicable to common shareholders $ 30 $ 32 $ (3) $ (12) $ (13) $ (46) $ (6) $ 59 $ (65) Realized capital (gains) losses, after-tax (11) (15) 19 (8) (4) (6) (7) (7) (17) Amortization of purchased intangibles, after-tax 21 21 21 23 25 25 24 63 74 Impairment of purchased intangibles, after-tax - - - - - 43 - - 43 Adjusted net income $ 40 $ 38 $ 37 $ 3 $ 8 $ 16 $ 11 $ 115 $ 35 Allstate Dealer Services Net premiums written $ 139 $ 113 $ 107 $ 123 $ 126 $ 120 $ 99 $ 359 $ 345 Total revenue (2) $ 129 $ 128 $ 112 $ 121 $ 115 $ 114 $ 107 $ 369 $ 336 Claims and claims expense (12) (10) (11) (12) (12) (12) (11) (33) (35) Other costs and expenses (3) (100) (98) (97) (95) (93) (90) (88) (295) (271) Income tax expense (4) (4) (1) (3) (2) (3) (1) (9) (6) Net income applicable to common shareholders $ 13 $ 16 $ 3 $ 11 $ 8 $ 9 $ 7 $ 32 $ 24 Realized capital (gains) losses, after-tax (6) (8) 4 (4) (2) (2) (1) (10) (5) Adjusted net income $ 7 $ 8 $ 7 $ 7 $ 6 $ 7 $ 6 $ 22 $ 19 Arity (4) Other revenue (5) $ - $ 1 $ - $ - $ 1 $ 1 $ - $ 1 $ 2 Intersegment service fees 25 25 30 35 34 24 24 80 82 Other costs and expenses (3) (30) (29) (34) (39) (36) (26) (27) (93) (89) Income tax benefit 2 - 1 1 - - 1 3 1 Net loss applicable to common shareholders $ (3) $ (3) $ (3) $ (3) $ (1) $ (1) $ (2) $ (9) $ (4) Adjusted net loss $ (3) $ (3) $ (3) $ (3) $ (1) $ (1) $ (2) $ (9) $ (4) Allstate Identity Protection Other revenue $ 27 $ 27 $ 28 $ 24 $ 22 $ 23 $ 24 $ 82 $ 69 Intersegment service fees 1 1 - - 1 - - 2 1 Other costs and expenses (3)(6) (45) (46) (43) (48) (47) (44) (38) (134) (129) Income tax benefit 5 5 3 3 6 5 3 13 14 Net loss applicable to common shareholders $ (12) $ (13) $ (12) $ (21) $ (18) $ (16) $ (11) $ (37) $ (45) Amortization of purchased intangibles, after-tax 8 9 9 9 11 10 10 26 31 Adjusted net loss $ (4) $ (4) $ (3) $ (12) $ (7) $ (6) $ (1) $ (11) $ (14) Allstate Roadside Services Net premiums written $ 46 $ 44 $ 51 $ 52 $ 57 $ 63 $ 63 $ 141 $ 183 Total revenue (2) $ 59 $ 53 $ 60 $ 65 $ 68 $ 73 $ 73 $ 172 $ 214 Claims and claims expense (25) (19) (26) (31) (35) (37) (38) (70) (110) Other costs and expenses (3) (28) (32) (31) (35) (39) (40) (43) (91) (122) Income tax (expense) benefit (2) - (1) - 1 1 2 (3) 4 Net income (loss) applicable to common shareholders $ 4 $ 2 $ 2 $ (1) $ (5) $ (3) $ (6) $ 8 $ (14) Adjusted net income (loss) $ 4 $ 2 $ 2 $ (1) $ (5) $ (3) $ (6) $ 8 $ (14) (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 22.9 million and 19.3 million as of September 30, 2020 and September 30, 2019, respectively. (5) Reflects revenue earned from external customers. (6) Includes investments in growing the business and integration into Allstate. The Allstate Corporation 3Q20 Supplement 23


 
The Allstate Corporation Allstate Protection Plans Results As of or for the ($ in millions) As of or for the three months ended nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Net premiums written $ 300 $ 310 $ 221 $ 278 $ 181 $ 167 $ 206 $ 831 $ 554 Net premiums earned $ 236 $ 219 $ 206 $ 172 $ 163 $ 153 $ 145 $ 661 $ 461 Other revenue 8 8 8 6 7 7 8 24 22 Net investment income 7 5 5 6 5 4 4 17 13 Realized capital gains (losses) 6 9 (19) 5 2 6 7 (4) 15 Claims and claims expense (70) (56) (55) (49) (46) (37) (43) (181) (126) Amortization of deferred policy acquisition costs (83) (75) (70) (62) (60) (56) (53) (228) (169) Other costs and expenses (56) (57) (50) (56) (49) (48) (42) (163) (139) Restructuring and related charges 3 - - - - - - 3 - Amortization of purchased intangibles (16) (15) (16) (18) (18) (18) (18) (47) (54) Impairment of purchased intangibles - - - - - (55) - - (55) Income tax (expense) benefit (7) (8) (2) (2) (1) 9 (2) (17) 6 Net income (loss) applicable to common shareholders $ 28 $ 30 $ 7 $ 2 $ 3 $ (35) $ 6 $ 65 $ (26) Realized capital (gains) losses, after-tax (5) (7) 15 (4) (2) (4) (6) 3 (12) Amortization of purchased intangibles, after-tax 13 12 12 14 14 15 14 37 43 Impairment of purchased intangibles, after-tax - - - - - 43 - - 43 Adjusted net income $ 36 $ 35 $ 34 $ 12 $ 15 $ 19 $ 14 $ 105 $ 48 Protection plans in force (in thousands) (1) 125,831 120,301 107,124 99,632 89,783 83,968 77,866 125,831 89,783 New issued protection plans (in thousands) 14,571 18,051 12,561 16,515 10,086 9,754 13,500 45,183 33,340 (1) Protection plan terms generally range between one and five years with an average term of three years. The Allstate Corporation 3Q20 Supplement 24


 
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 nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Premiums $ 154 $ 165 $ 153 $ 166 $ 155 $ 157 $ 154 $ 472 $ 466 Contract charges 176 174 180 176 176 176 183 530 535 Other revenue (1) 28 24 32 34 31 33 27 84 91 Net investment income 123 123 128 134 128 125 127 374 380 Contract benefits (248) (238) (212) (223) (202) (216) (214) (698) (632) Interest credited to contractholder funds (74) (71) (70) (73) (73) (70) (72) (215) (215) Amortization of deferred policy acquisition costs (102) (18) (30) (29) (85) (27) (26) (150) (138) Operating costs and expenses (81) (75) (84) (95) (77) (91) (91) (240) (259) Restructuring and related charges (2) (2) (1) (1) - (1) - (5) (1) Income tax expense on operations 12 (10) (16) (13) (9) (18) (15) (14) (42) Adjusted net income (14) 72 80 76 44 68 73 138 185 Realized capital gains (losses), after-tax 6 16 (25) - 4 - (4) (3) - Valuation changes on embedded derivatives not hedged, after- tax (1) (35) 12 - (9) - - (24) (9) DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax (4) 11 (3) (3) 1 (1) (2) 4 (2) Net income applicable to common shareholders $ (13) $ 64 $ 64 $ 73 $ 40 $ 67 $ 67 $ 115 $ 174 Premiums and contract charges by product Traditional life insurance premiums $ 154 $ 164 $ 153 $ 165 $ 155 $ 156 $ 154 $ 471 $ 465 Accident and health insurance premiums - 1 - 1 - 1 - 1 1 Interest-sensitive life insurance contract charges 176 174 180 176 176 176 183 530 535 Total $ 330 $ 339 $ 333 $ 342 $ 331 $ 333 $ 337 $ 1,002 $ 1,001 Benefit spread Premiums $ 154 $ 165 $ 153 $ 166 $ 155 $ 157 $ 154 $ 472 $ 466 Cost of insurance contract charges 125 126 128 124 123 123 129 379 375 Contract benefits (248) (238) (212) (223) (202) (216) (214) (698) (632) Total benefit spread $ 31 $ 53 $ 69 $ 67 $ 76 $ 64 $ 69 $ 153 $ 209 Investment spread Net investment income $ 123 $ 123 $ 128 $ 134 $ 128 $ 125 $ 127 $ 374 $ 380 Interest credited to contractholder funds (76) (114) (56) (72) (85) (70) (72) (246) (227) Total investment spread $ 47 $ 9 $ 72 $ 62 $ 43 $ 55 $ 55 $ 128 $ 153 Proprietary life issued policies (2) 18,020 17,232 20,169 34,927 31,031 33,105 28,425 55,421 92,561 Policies in force (in thousands) (3) Life insurance Allstate agencies 1,774 1,789 1,797 1,816 1,818 1,822 1,823 1,774 1,818 Closed channels 98 101 103 105 106 109 111 98 106 Accident and health insurance 2 2 2 2 2 2 2 2 2 Total 1,874 1,892 1,902 1,923 1,926 1,933 1,936 1,874 1,926 (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 3Q20 Supplement 25


 
The Allstate Corporation Allstate Life Return on Equity ($ in millions) Twelve months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2020 2020 2019 2019 2019 2019 Return on equity Numerator: Net income applicable to common shareholders (1)(2) $ 188 $ 241 $ 244 $ 247 $ 237 $ 252 $ 260 Denominator: Beginning equity $ 2,863 $ 2,744 $ 2,657 $ 2,474 $ 2,528 $ 2,587 $ 2,542 Ending equity 3,075 3,037 2,842 2,944 2,863 2,744 2,657 Average equity (3) $ 2,969 $ 2,891 $ 2,750 $ 2,709 $ 2,696 $ 2,666 $ 2,600 Return on equity 6.3 % 8.3 % 8.9 % 9.1 % 8.8 % 9.5 % 10.0 % Adjusted net income return on adjusted equity Numerator: Adjusted net income (1) $ 214 $ 272 $ 268 $ 261 $ 254 $ 285 $ 297 Denominator: Beginning equity $ 2,863 $ 2,744 $ 2,657 $ 2,474 $ 2,528 $ 2,587 $ 2,542 Less: Unrealized net capital gains and losses 350 271 168 52 75 89 142 Goodwill 175 175 175 175 175 175 175 Adjusted beginning equity $ 2,338 $ 2,298 $ 2,314 $ 2,247 $ 2,278 $ 2,323 $ 2,225 Ending equity $ 3,075 $ 3,037 $ 2,842 $ 2,944 $ 2,863 $ 2,744 $ 2,657 Less: Unrealized net capital gains and losses 484 433 183 328 350 271 168 Goodwill 175 175 175 175 175 175 175 Adjusted ending equity $ 2,416 $ 2,429 $ 2,484 $ 2,441 $ 2,338 $ 2,298 $ 2,314 Average adjusted equity (3) $ 2,377 $ 2,364 $ 2,399 $ 2,344 $ 2,308 $ 2,311 $ 2,270 Adjusted net income return on adjusted equity * 9.0 % 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 3Q20 Supplement 26


 
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 nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Premiums $ 247 $ 237 $ 253 $ 254 $ 262 $ 256 $ 259 $ 737 $ 777 Contract charges 40 26 29 28 29 28 29 95 86 Net investment income 18 20 20 22 21 21 19 58 61 Contract benefits (128) (123) (141) (152) (161) (143) (145) (392) (449) Interest credited to contractholder funds (8) (9) (9) (8) (9) (8) (9) (26) (26) Amortization of deferred policy acquisition costs (59) (35) (45) (50) (33) (35) (43) (139) (111) Operating costs and expenses (68) (110) (5) (75) (74) (69) (71) (71) (253) (211) Restructuring and related charges - (1) - - - - - (1) - Income tax expense on operations (9) - (8) (4) (9) (11) (8) (17) (28) Adjusted net income 33 5 24 16 31 37 31 62 99 Realized capital gains (losses), after-tax 3 7 (10) 2 2 2 3 - 7 Net income applicable to common shareholders $ 36 $ 12 $ 14 $ 18 $ 33 $ 39 $ 34 $ 62 $ 106 Benefit ratio (1) 44.6 46.8 50.0 53.9 55.3 50.4 50.3 47.1 52.0 Operating expense ratio (2) 23.7 41.8 26.6 26.2 23.7 25.0 24.7 30.4 24.4 Premiums and contract charges by product Life $ 52 $ 38 $ 38 $ 40 $ 41 $ 38 $ 38 $ 128 $ 117 Accident 72 69 73 72 76 74 76 214 226 Critical illness 118 115 122 116 121 120 122 355 363 Short-term disability 19 17 20 27 27 27 26 56 80 Other health 26 24 29 27 26 25 26 79 77 Total $ 287 $ 263 $ 282 $ 282 $ 291 $ 284 $ 288 $ 832 $ 863 New annualized premium sales by product (3) Life $ 7 $ 4 $ 6 $ 19 $ 9 $ 9 $ 8 $ 17 $ 26 Accident 13 13 17 43 20 20 21 43 61 Critical illness 14 17 21 61 23 22 24 52 69 Short-term disability 5 3 5 11 7 9 8 13 24 Other health 7 9 8 24 10 13 11 24 34 Total $ 46 $ 46 $ 57 $ 158 $ 69 $ 73 $ 72 $ 149 $ 214 Annualized premium in force (4) $ 1,163 $ 1,257 $ 1,233 $ 1,195 $ 1,248 $ 1,249 $ 1,251 $ 1,163 $ 1,248 (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 3Q20 Supplement 27


 
The Allstate Corporation Allstate Benefits Return on Equity ($ in millions) Twelve months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2020 2020 2020 2019 2019 2019 2019 Return on equity Numerator: Net income applicable to common shareholders (1) $ 80 $ 77 $ 104 $ 124 $ 126 $ 128 $ 125 Denominator: Beginning equity $ 1,010 $ 969 $ 906 $ 842 $ 883 $ 848 $ 824 Ending equity 1,051 1,004 923 949 1,010 969 906 Average equity (2) $ 1,031 $ 987 $ 915 $ 896 $ 947 $ 909 $ 865 Return on equity 7.8 % 7.8 % 11.4 % 13.8 % 13.3 % 14.1 % 14.5 % Adjusted net income return on adjusted equity Numerator: Adjusted net income (1) $ 78 $ 76 $ 108 $ 115 $ 125 $ 127 $ 126 Denominator: Beginning equity $ 1,010 $ 969 $ 906 $ 842 $ 883 $ 848 $ 824 Less: Unrealized net capital gains and losses 52 44 21 (10) (4) (4) 8 Goodwill 96 96 96 96 96 96 96 Adjusted beginning equity $ 862 $ 829 $ 789 $ 756 $ 791 $ 756 $ 720 Ending equity $ 1,051 $ 1,004 $ 923 $ 949 $ 1,010 $ 969 $ 906 Less: Unrealized net capital gains and losses 89 77 14 53 52 44 21 Goodwill 96 96 96 96 96 96 96 Adjusted ending equity $ 866 $ 831 $ 813 $ 800 $ 862 $ 829 $ 789 Average adjusted equity (2) $ 864 $ 830 $ 801 $ 778 $ 827 $ 793 $ 755 Adjusted net income return on adjusted equity * 9.0 % 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 3Q20 Supplement 28


 
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 nine months ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2020 2020 2020 2019 2019 2019 2019 2020 2019 Contract charges $ 3 $ 2 $ 2 $ 3 $ 3 $ 4 $ 3 $ 7 $ 10 Net investment income (1) 245 66 47 180 251 296 190 358 737 Periodic settlements and accruals on non-hedge derivative instruments - - - - (1) 1 - - - Contract benefits (126) (136) (148) (143) (150) (152) (138) (410) (440) Interest credited to contractholder funds (67) (69) (70) (73) (73) (75) (78) (206) (226) Amortization of deferred policy acquisition costs - (1) (2) (2) (2) (1) (2) (3) (5) Operating costs and expenses (6) (7) (6) (7) (7) (8) (7) (19) (22) Restructuring and related charges (2) - - (1) - - - (2) - Income tax (expense) benefit on operations (10) 34 38 10 (5) (13) 7 62 (11) Adjusted net income (loss) 37 (111) (139) (33) 16 52 (25) (213) 43 Realized capital gains (losses), after-tax 89 194 (213) 97 16 37 124 70 177 Valuation changes on embedded derivatives not hedged, after-tax 1 (6) 2 - (1) (2) (3) (3) (6) Premium deficiency for immediate annuities, after-tax (178) - - - - - - (178) - Gain on disposition of operations, after-tax - 1 1 2 - 1 1 2 2 Net income (loss) applicable to common shareholders $ (51) $ 78 $ (349) $ 66 $ 31 $ 88 $ 97 $ (322) $ 216 Benefit spread Cost of insurance contract charges $ 3 $ 1 $ 2 $ 3 $ 2 $ 2 $ 2 $ 6 $ 6 Contract benefits excluding the implied interest on immediate annuities with life contingencies (227) (21) (30) (24) (30) (33) (17) (278) (80) Total benefit spread $ (224) $ (20) $ (28) $ (21) $ (28) $ (31) $ (15) $ (272) $ (74) Investment spread Net investment income $ 245 $ 66 $ 47 $ 180 $ 251 $ 296 $ 190 $ 358 $ 737 Implied interest on immediate annuities with life contingencies (124) (115) (118) (119) (120) (119) (121) (357) (360) Interest credited to contractholder funds (66) (77) (67) (73) (75) (78) (81) (210) (234) Total investment spread $ 55 $ (126) $ (138) $ (12) $ 56 $ 99 $ (12) $ (209) $ 143 (1) Performance-based net investment income, a component of net investment income $ 81 $ (101) $ (122) $ (5) $ 68 $ 106 $ 1 $ (142) $ 175 The Allstate Corporation 3Q20 Supplement 29