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all-20210804
0000899051falseCommon Stock, par value $.01 per shareALLNYSECommon Stock, par value $.01 per shareALLCHX00008990512021-08-042021-08-040000899051all:SubordinatedDebenturesDue2053At5.10PercentMember2021-08-042021-08-040000899051us-gaap:SeriesGPreferredStockMember2021-08-042021-08-040000899051exch:XNYSus-gaap:SeriesHPreferredStockMember2021-08-042021-08-040000899051all:SeriesIPreferredStockMember2021-08-042021-08-040000899051exch:XNYSus-gaap:CommonStockMember2021-08-042021-08-040000899051exch:XCHIus-gaap:CommonStockMember2021-08-042021-08-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported): August 4, 2021
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 classTrading SymbolsName of each exchange on which registered
Common Stock, par value $0.01 per shareALLNew York Stock Exchange
Chicago Stock Exchange
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053ALL.PR.BNew York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series GALL PR GNew York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series HALL PR HNew York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series IALL PR INew 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. ☐






Section 2 – Financial Information
 
Item 2.02.                             Results of Operations and Financial Condition.
 
The Registrant’s press release dated August 4, 2021, announcing its financial results for the second quarter of 2021, and the Registrant’s second quarter 2021 investor supplement are furnished as Exhibits 99.1 and 99.2, respectively, to this report.  The information contained in the press release and the investor supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.
 
Section 9 – Financial Statements and Exhibits
 
Item 9.01.                             Financial Statements and Exhibits.
 
(d)  Exhibits
 
99.1                                                Registrant’s press release dated August 4, 2021
99.2                                             Second quarter 2021 Investor Supplement of The Allstate Corporation
104     Cover Page Interactive Data File (formatted as inline XBRL).































2


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 THE ALLSTATE CORPORATION
 (Registrant)
   
 By:/s/ John C. Pintozzi
 Name: John C. Pintozzi
 Title: Senior Vice President, Controller and Chief Accounting Officer

Date: August 4, 2021
3
Document

Exhibit 99.1
https://cdn.kscope.io/37b5bf2f44161dba13621e879a9430ca-earningsreleaseimagea35.jpg
FOR IMMEDIATE RELEASE

Contacts:    
Rachel Hill                Mark Nogal                
Media Relations          Investor Relations            
(847) 402-5600                (847) 402-2800                

Allstate Delivers Strong Performance as Economic Activity Increases
New share repurchase program of $5 billion

NORTHBROOK, Ill., August 4, 2021 – The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2021.
The Allstate Corporation Consolidated Highlights
Three months ended June 30,Six months ended June 30,
($ in millions, except per share data and ratios)20212020% / pts
Change		20212020% / pts
Change
Consolidated revenues$12,646 $10,403 21.6 $25,097 $20,269 23.8 
Net income applicable to common shareholders1,595 1,224 30.3 187 1,737 (89.2)
per diluted common share5.26 3.86 36.3 0.61 5.43 (88.8)
Adjusted net income*
1,149 816 40.8 3,020 2,018 49.7 
per diluted common share*3.79 2.58 46.9 9.90 6.31 56.9 
Return on Allstate common shareholders’ equity (trailing twelve months)
Net income applicable to common shareholders15.3 %18.2 %(2.9)
Adjusted net income*23.8 %18.0 %5.8 
Book value per common share
86.33 79.21 9.0 
Property-Liability combined ratio
Recorded95.7 89.8 5.9 89.5 87.3 2.2 
Underlying combined ratio*85.7 76.8 8.9 81.4 79.5 1.9 
Property-Liability insurance premiums earned
10,009 8,863 12.9 19,905 17,744 12.2 
Catastrophe losses952 1,186 (19.7)1,542 1,397 10.4 
Shelter-in-Place Payback expense29 738 (96.1)29 948 (96.9)
Total policies in force (in thousands)
189,361 165,463 14.4 
*     Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the “Definitions of Non-GAAP Measures” section of this document.

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

“The Transformative Growth plan and innovation are also creating long-term shareholder value. Property-Liability policies in force and premiums written were 12.1% and 12.5%, respectively, above the prior year due to expansion of auto insurance sold through independent agents with the National General acquisition. Policies in force through Allstate’s direct and agent operations were flat as a 6.7% increase in new business, due to improved auto insurance
1

pricing and increased advertising, was offset by lower customer retention reflecting pandemic-related customer support in the prior year. Telematics innovation has resulted in rapid growth of pay-per-mile auto insurance and Arity’s expansion into marketing services. The new $5 billion share repurchase program that was approved today will help maintain a top 15% ranking of cash returns to shareholders among S&P 500 companies,” concluded Wilson.



Second Quarter 2021 Results

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

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

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

Property-Liability Results
Three months ended June 30,Six months ended June 30,
($ in millions, except ratios)20212020% / pts
Change		20212020% / pts
Change
Premiums written$10,323 $9,172 12.5 %20,091 17,764 13.1 %
Allstate Brand9,008 8,909 1.1 17,429 17,279 0.9 
National General1,315 263 NM2,662 485 NM
Underwriting income429 902 (52.4)2,086 2,250 (7.3)
Allstate Brand414 899 (53.9)1,929 2,235 (13.7)
National General15 6 NM153 20 NM
Recorded combined ratio95.7 89.8 5.9 89.5 87.3 2.2 
Allstate Protection auto94.3 83.8 10.5 87.4 86.6 0.8 
Allstate Protection homeowners100.3 106.8 (6.5)94.6 89.2 5.4 
Underlying combined ratio*85.7 76.8 8.9 81.4 79.5 1.9 
Allstate Protection auto91.8 82.4 9.4 86.0 85.6 0.4 
Allstate Protection homeowners69.5 60.6 8.9 68.6 61.5 7.1 
NM = not meaningful


•Property-Liability written premium of $10.3 billion increased 12.5% in the second quarter of 2021 compared to the prior year quarter, primarily driven by the acquisition of National General. The recorded combined ratio of 95.7 generated underwriting income of $429 million, a decrease of $473 million compared to the prior year quarter. Income decreased primarily due to higher non-catastrophe losses in auto and homeowners insurance, which were partially offset by increased premiums related to the acquisition of National General and lower Shelter-in-Place Payback expense.

◦The underlying combined ratio* of 85.7 for the second quarter of 2021 was 8.9 points above the prior year quarter, reflecting higher non-catastrophe losses due to increased auto accident frequency and higher incurred auto and homeowners claims severity, partially offset by lower expenses.

2

◦Cost reductions implemented in 2020 and continuing in 2021 provide operational flexibility to improve customer value and invest in growth. The expense ratio of 24.7 decreased 7.1 points compared to the prior year quarter, due to lower Coronavirus-related expenses from Shelter-in-Place Payback and bad debt. This was partially offset by the amortization of purchased intangibles, increased advertising of 0.7 points and restructuring charges of $66 million. Excluding these items, the expense ratio decreased 0.4 points compared to the prior year quarter due to lower operating expenses. Increased claims process efficiency and expanded digital capabilities have also resulted in lower expenses while improving the customer experience.

◦Allstate Protection auto insurance net written premium increased 10.1%, and policies in force increased 14.1% compared to the prior year quarter, driven by the acquisition of National General and increased new issued applications. Allstate brand auto net written premiums declined slightly from the prior year quarter as increased new issued applications were offset by lower average premiums. Policies in force increased sequentially for the second consecutive quarter, increasing 161 thousand compared to the end of the first quarter 2021, including 96 thousand from the Allstate brand.

The recorded auto insurance combined ratio of 94.3 in the second quarter of 2021 was 10.5 points above the prior year quarter, and the underlying combined ratio* of 91.8 was 9.4 points above the prior year quarter, primarily due to an increase in the loss ratio, partially offset by a lower expense ratio. The auto loss ratio increase was driven by higher accident frequency as miles driven rebound toward pre-pandemic levels and higher incurred claim severity from inflation and supply chain disruptions.

◦Allstate Protection homeowners insurance net written premium grew 19.2%, and policies in force increased 7.5% compared to the second quarter of 2020, due to the acquisition of National General and growth of Allstate brand policies. Allstate brand net written premium increased 6.2% compared to the prior year quarter, driven by higher average premiums and new issued application growth.

The recorded homeowners insurance combined ratio of 100.3 in the second quarter of 2021 was 6.5 points below the second quarter of 2020, primarily driven by lower catastrophe losses and increased premiums earned, partially offset by higher non-catastrophe losses. The underlying combined ratio* of 69.5 was 8.9 points higher than the prior year quarter, reflecting the inclusion of National General’s results, higher non-catastrophe claim frequency and increased severity due to inflation in labor and material costs.

Protection Services Results
Three months ended June 30,Six months ended June 30,
($ in millions)20212020% / $
Change		20212020% / $
Change
Total revenues (1)
$581 $457 27.1 %$1,133 $911 24.4 %
Allstate Protection Plans295 232 27.2 570 451 26.4 
Allstate Dealer Services130 118 10.2 253 235 7.7 
Allstate Roadside60 53 13.2 119 113 5.3 
Arity64 26 146.2 128 56 128.6 
Allstate Identity Protection32 28 14.3 63 56 12.5 
Adjusted net income (loss) $56 $38 $18 $105 $75 $30 
Allstate Protection Plans42 35 7 87 69 18 
Allstate Dealer Services10 8 2 18 15 3 
Allstate Roadside2 2 — 6 4 2 
Arity1 (3)4 3 (6)9 
Allstate Identity Protection1 (4)5 (9)(7)(2)
(1) Excludes realized capital gains and losses


•Protection Services revenues increased to $581 million in the second quarter of 2021, 27.1% higher than the prior year quarter. Adjusted net income of $56 million increased by $18 million compared to the prior year quarter, due to growth at Allstate Protection Plans and profits at Arity and Allstate Identity Protection.
3

◦Allstate Protection Plans revenue of $295 million increased $63 million, or 27.2%, compared to the prior year quarter, reflecting increased policies in force. Adjusted net income of $42 million in the second quarter of 2021 was $7 million higher than the prior year quarter, driven by profitable growth.

◦Allstate Dealer Services revenue of $130 million was 10.2% higher than the second quarter of 2020, driven by increased auto industry sales and the impact of lower volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $10 million in the second quarter was $2 million higher than the prior year quarter.

◦Allstate Roadside revenue of $60 million in the second quarter of 2021 increased 13.2% compared to the prior year quarter, driven by the impact of lower rescue volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $2 million in the second quarter of 2021 was flat compared to the prior year quarter.

◦Arity revenue of $64 million increased $38 million compared to the prior year quarter, primarily driven by the inclusion of Transparent.ly and LeadCloud as a result of the National General acquisition, and increased device sales driven by growth in the Allstate brand Milewise® product. Adjusted net income of $1 million in the second quarter of 2021 improved $4 million compared to the prior year quarter.

◦Allstate Identity Protection revenue of $32 million in the second quarter of 2021 increased 14.3% compared to the prior year quarter. Adjusted net income of $1 million in the second quarter of 2021 increased $5 million compared to the prior year quarter.

Allstate Health and Benefits Results
Three months ended June 30,Six months ended June 30,
($ in millions)20212020% Change20212020% Change
Premiums and contract charges447 263 70.0 902 545 65.5 
Employer voluntary benefits255 263 (3.0)518 545 (5.0)
Group health87 — NM170 — NM
Individual accident and health105 — NM214 — NM
Adjusted net income62 5 NM127 29 NM

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

Allstate Investment Results
Three months ended June 30,Six months ended June 30,
($ in millions, except ratios)20212020$ / pts
Change		20212020$ / pts
Change
Net investment income$974 $220 754 $1,682 $466 1,216
Market-based investment income (1)
355 352 3709 712 (3)
Performance-based investment income (1)
649 (110)7591,027 (196)1,223
Realized capital gains (losses)287 440 (153)713 278 435
Change in unrealized net capital gains and losses, pre-tax324 1,829 NM(1,050)704 NM
Total return on investment portfolio2.6 %4.8 %(2.2)2.4 %2.6 %(0.2)
Total return on investment portfolio (trailing twelve months)6.8 %5.9 %0.9 
(1)Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.

•Allstate Investments $62.6 billion portfolio generated net investment income of $974 million in the second quarter of 2021, an increase of $754 million from the prior year quarter, driven by higher performance-based income.

4

◦Market-based investment income contributed $355 million of investment income in the second quarter of 2021, an increase of $3 million, or 0.9%, compared to the prior year quarter as the impact of low reinvestment rates was mitigated by higher average assets under management and prepayment fee income.

◦Performance-based investment income totaled $649 million in the second quarter of 2021, an increase of $759 million compared to the prior year quarter. The increase reflects higher private equity investment valuations and net gains from sales of real estate investments.
◦Net realized capital gains were $287 million in the second quarter of 2021, compared to $440 million in the prior year quarter, primarily due to higher equity valuations and gains on sales of fixed income securities and real estate.
◦Unrealized net capital gains increased $324 million from the first quarter of 2021 as lower interest rates resulted in higher fixed income valuations.
◦Total return on the investment portfolio was 2.6% for the second quarter of 2021 and 6.8% over the trailing twelve-month period.

•Discontinued Operations generated $196 million of income in the second quarter of 2021, primarily driven by higher performance-based income. In the first quarter of 2021, the assets and liabilities of Allstate Life Insurance Company and Allstate Life Insurance Company of New York were reclassified as held for sale with results presented as discontinued operations. This includes $37.0 billion of assets and $32.8 billion of liabilities as of June 30, 2021.


Proactive Capital Management

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





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



Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
5

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

June 30, 2021December 31, 2020
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $41,344 and $40,034)
$42,825 $42,565 
Equity securities, at fair value (cost $2,537 and $2,740)
3,059 3,168 
Mortgage loans, net786 746 
Limited partnership interests7,073 4,563 
Short-term, at fair value (amortized cost $5,516 and $6,807)
5,516 6,807 
Other, net3,311 1,691 
Total investments62,570 59,540 
Cash656 311 
Premium installment receivables, net8,146 6,463 
Deferred policy acquisition costs4,374 3,774 
Reinsurance and indemnification recoverables, net9,497 7,215 
Accrued investment income350 371 
Property and equipment, net1,026 1,057 
Goodwill3,349 2,369 
Other assets, net5,706 2,756 
Assets held for sale36,969 42,131 
Total assets$132,643 $125,987 
Liabilities
Reserve for property and casualty insurance claims and claims expense$31,637 $27,610 
Reserve for future policy benefits1,239 1,028 
Contractholder funds858 857 
Unearned premiums18,756 15,946 
Claim payments outstanding1,040 957 
Deferred income taxes758 382 
Other liabilities and accrued expenses9,392 7,840 
Long-term debt7,996 7,825 
Liabilities held for sale32,775 33,325 
Total liabilities104,451 95,770 
Equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 81.0 thousand shares issued and outstanding, $2,025 aggregate liquidation preference; $.01 par value, 8 million shares authorized, 200.0 thousand shares issued and outstanding, $200 aggregate liquidation preference for $200 in 2021
2,170 1,970 
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 297 million and 304 million shares outstanding
9 9 
Additional capital paid-in3,668 3,498 
Retained income52,464 52,767 
Treasury stock, at cost (603 million and 596 million shares)
(32,394)(31,331)
Accumulated other comprehensive income:
Other unrealized net capital gains and losses2,726 3,860 
Unrealized adjustment to DAC, DSI and insurance reserves(562)(680)
Total unrealized net capital gains and losses
2,164 3,180 
Unrealized foreign currency translation adjustments24 (7)
Unamortized pension and other postretirement prior service credit102 131 
Total accumulated other comprehensive income
2,290 3,304 
Total Allstate shareholders’ equity28,207 30,217 
Noncontrolling interest(15)— 
Total equity
28,192 30,217 
Total liabilities and equity
$132,643 $125,987 



6

THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
($ in millions, except per share data)
Three months ended June 30,Six months ended June 30,
2021202020212020
Revenues
Property and casualty insurance premiums$10,444 $9,223 $20,751 $18,458 
Accident and health insurance premiums and contract charges447 263 902 545 
Other revenue494 257 1,049 522 
Net investment income974 220 1,682 466 
Realized capital gains (losses)287 440 713 278 
Total revenues12,646 10,403 25,097 20,269 
Costs and expenses
Property and casualty insurance claims and claims expense7,207 5,222 13,250 10,563 
Shelter-in-Place Payback expense29 738 29 948 
Accident and health insurance policy benefits244 123 477 264 
Interest credited to contractholder funds8 9 17 18 
Amortization of deferred policy acquisition costs1,545 1,344 3,068 2,709 
Operating costs and expenses1,683 1,394 3,414 2,732 
Pension and other postretirement remeasurement (gains) losses(134)73 (444)391 
Restructuring and related charges71 13 122 17 
Amortization of purchased intangibles105 29 158 57 
Interest expense91 79 177 160 
Total costs and expenses10,849 9,024 20,268 17,859 
Income from operations before income tax expense1,797 1,379 4,829 2,410 
Income tax expense362 273 988 467 
Net income from continuing operations1,435 1,106 3,841 1,943 
Income (loss) from discontinued operations, net of tax196 144 (3,597)(144)
Net income1,631 1,250 244 1,799 
Less: Net income attributable to noncontrolling interest6 — — — 
Net income attributable to Allstate1,625 1,250 244 1,799 
Less: Preferred stock dividends30 26 57 62 
Net income applicable to common shareholders$1,595 $1,224 $187 $1,737 
Earnings per common share applicable to common shareholders
Basic
Continuing operations$4.68 $3.44 $12.59 $5.96 
Discontinued operations0.66 0.46 (11.97)(0.46)
Total$5.34 $3.90 $0.62 $5.50 
Diluted
Continuing operations$4.61 $3.41 $12.41 $5.88 
Discontinued operations0.65 0.45 (11.80)(0.45)
Total$5.26 $3.86 $0.61 $5.43 
Weighted average common shares – Basic298.8 313.7 300.6 315.6 
Weighted average common shares – Diluted303.3 317.0 304.9 319.8 

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 (loss) applicable to common shareholders, excluding:
◦realized capital gains and losses except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income,
◦pension and other postretirement remeasurement gains and losses,
◦business combination expenses and the amortization or impairment of purchased intangibles,
◦income or loss from discontinued operations,
◦adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years, and
◦related income tax expense or benefit of these items.
Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income.
We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, business combination expenses and the amortization or impairment of purchased intangibles, income or loss from discontinued operations and adjustments for other significant non-recurring, infrequent or unusual items and related tax expense or benefit of these items. Realized capital gains and losses, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Business combination expenses and income or loss from discontinued operations are excluded because they are non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business.
8

The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income. Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income generally use a 21% effective tax rate.
($ in millions, except per share data)Three months ended June 30,
ConsolidatedPer diluted common share
2021202020212020
Net income (loss) applicable to common shareholders$1,595 $1,224 $5.26 $3.86 
Realized capital (gains) losses(287)(440)(0.95)(1.39)
Pension and other postretirement remeasurement (gains) losses(134)73 (0.44)0.23 
Reclassification of periodic settlements and accruals on non-hedge derivative instruments— — — — 
Business combination expenses and the amortization of purchased intangibles105 29 0.35 0.09 
Business combination fair value adjustment(6)— (0.02)— 
(Income) loss from discontinued operations(493)(167)(1.63)(0.52)
Income tax expense (benefit)369 97 1.22 0.31 
Adjusted net income *$1,149 $816 $3.79 $2.58 
Six months ended June 30,
ConsolidatedPer diluted common share
2021202020212020
Net income (loss) applicable to common shareholders$187 $1,737 $0.61 $5.43 
Realized capital (gains) losses(713)(278)(2.34)(0.87)
Pension and other postretirement remeasurement (gains) losses(444)391 (1.46)1.22 
Reclassification of periodic settlements and accruals on non-hedge derivative instruments1 — — — 
Business combination expenses and the amortization of purchased intangibles180 57 0.59 0.18 
Business combination fair value adjustment(6)— (0.02)— 
(Income) loss from discontinued operations3,670 203 12.04 0.63 
Income tax expense (benefit)145 (92)0.48 (0.28)
Adjusted net income *$3,020 $2,018 $9.90 $6.31 
9

Adjusted net income return on Allstate common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders’ equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed above. We use average Allstate common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily applicable to the Allstate’s earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders’ equity from return on Allstate common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders’ equity and return on Allstate common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders’ equity goal. Adjusted net income return on Allstate common shareholders’ equity should not be considered a substitute for return on Allstate common shareholders’ equity and does not reflect the overall profitability of our business.
The following tables reconcile return on Allstate common shareholders’ equity and adjusted net income return on Allstate common shareholders’ equity.
($ in millions)For the twelve months ended June 30,
20212020
Return on Allstate common shareholders’ equity
Numerator:
Net income applicable to common shareholders
$3,911 $4,333 
Denominator:
Beginning Allstate common shareholders’ equity (1)
$25,016 $22,546 
Ending Allstate common shareholders’ equity (1)
26,037 25,016 
Average Allstate common shareholders’ equity
$25,527 $23,781 
Return on Allstate common shareholders’ equity15.3 %18.2 %

($ in millions)For the twelve months ended June 30,
20212020
Adjusted net income return on Allstate common shareholders’ equity
Numerator:
Adjusted net income *$5,512 $3,887 
Denominator:
Beginning Allstate common shareholders’ equity (1)
$25,016 $22,546 
Less: Unrealized net capital gains and losses 2,602 1,654 
Adjusted beginning Allstate common shareholders’ equity
22,414 20,892 
Ending Allstate common shareholders’ equity (1)
26,037 25,016 
Less: Unrealized net capital gains and losses2,164 2,602 
Adjusted ending Allstate common shareholders’ equity
23,873 22,414 
Average adjusted Allstate common shareholders’ equity
$23,144 $21,653 
Adjusted net income return on Allstate common shareholders’ equity *23.8 %18.0 %
_____________
(1) Excludes equity related to preferred stock of $2,170 million as of June 30, 2021, $1,970 million as of June 30, 2020 and $1,930 million as of June 30, 2019.
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-LiabilityThree months ended June 30,Six months ended June 30,
2021202020212020
Combined ratio
95.7 89.8 89.5 87.3 
Effect of catastrophe losses(9.5)(13.4)(7.7)(7.9)
Effect of prior year non-catastrophe reserve reestimates0.2 0.4 0.1 0.1 
Effect of amortization of purchased intangibles(0.7)— (0.5)— 
Underlying combined ratio*85.7 76.8 81.4 79.5 
Effect of prior year catastrophe reserve reestimates0.4 0.3 (1.0)— 
Allstate Protection - Auto InsuranceThree months ended June 30,Six months ended June 30,
2021202020212020
Combined ratio94.3 83.8 87.4 86.6 
Effect of catastrophe losses(2.2)(2.2)(1.3)(1.2)
Effect of prior year non-catastrophe reserve reestimates0.4 0.8 0.3 0.2 
Effect of amortization of purchased intangibles(0.7)— (0.4)— 
Underlying combined ratio*91.8 82.4 86.0 85.6 
Effect of prior year catastrophe reserve reestimates(0.1)(0.1)(0.2)(0.1)
Allstate Protection - Homeowners InsuranceThree months ended June 30,Six months ended June 30,
2021202020212020
Combined ratio100.3 106.8 94.6 89.2 
Effect of catastrophe losses(30.3)(46.4)(25.5)(27.8)
Effect of prior year non-catastrophe reserve reestimates0.3 0.2 — 0.1 
Effect of amortization of purchased intangibles(0.8)— (0.5)— 
Underlying combined ratio*69.5 60.6 68.6 61.5 
Effect of prior year catastrophe reserve reestimates1.5 1.3 (3.6)0.5 





# # # # #
11
allcorp63021investorsupp
Investor Supplement Second Quarter 2021 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

 
Condensed Consolidated Statements of Operations 1 Segment Results and Other Statistics 11 Contribution to Income 2 Book Value per Common Share and Debt to Capital 3 Return on Allstate Common Shareholders' Equity 4 Segment Results 12 Policies in Force 5 Investment Position and Results 13 Results 6 Investment Position and Results by Strategy 14 Allstate Protection Profitability Measures 7 15,16 Auto Profitability Measures 8 Homeowners Profitability Measures 9 17 Segment Results 10 Protection Services Glossary Items included in the glossary are denoted with a caret (^) the first time used. Corporate and Other Definitions of Non-GAAP Measures Investments Property-Liability Allstate Protection The Allstate Corporation Investor Supplement - Second Quarter 2021 Table of Contents Consolidated Operations Allstate Health and Benefits

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 10,444$ 10,307$ 9,279$ 9,336$ 9,223$ 9,235$ 20,751$ 18,458$ 447 455 262 287 263 282 902 545 494 555 271 272 257 265 1,049 522 974 708 660 464 220 246 1,682 466 287 426 490 319 440 (162) 713 278 12,646 12,451 10,962 10,678 10,403 9,866 25,097 20,269 7,207 6,043 5,366 6,072 5,222 5,341 13,250 10,563 29 - - - 738 210 29 948 244 233 124 128 123 141 477 264 8 9 7 8 9 9 17 18 1,545 1,523 1,382 1,386 1,344 1,365 3,068 2,709 1,683 1,731 1,440 1,322 1,394 1,338 3,414 2,732 (134) (310) (371) (71) 73 318 (444) 391 71 51 40 196 13 4 122 17 105 53 30 31 29 28 158 57 91 86 80 78 79 81 177 160 10,849 9,419 8,098 9,150 9,024 8,835 20,268 17,859 1,797 3,032 2,864 1,528 1,379 1,031 4,829 2,410 362 626 594 312 273 194 988 467 1,435 2,406 2,270 1,216 1,106 837 3,841 1,943 196 (3,793) 354 (63) 144 (288) (3,597) (144) 1,631 (1,387) 2,624 1,153 1,250 549 244 1,799 6 (6) - - - - - - 1,625 (1,381) 2,624 1,153 1,250 549 244 1,799 30 27 26 27 26 36 57 62 1,595$ (1,408)$ 2,598$ 1,126$ 1,224$ 513$ 187$ 1,737$ 4.68$ 7.88$ 7.38$ 3.82$ 3.44$ 2.52$ 12.59$ 5.96$ 0.66 (12.53) 1.16 (0.20) 0.46 (0.90) (11.97) (0.46) 5.34$ (4.65)$ 8.54$ 3.62$ 3.90$ 1.62$ 0.62$ 5.50$ 4.61$ 7.78$ 7.30$ 3.78$ 3.41$ 2.48$ 12.41$ 5.88$ 0.65 (12.38) 1.15 (0.20) 0.45 (0.89) (11.80) (0.45) 5.26$ (4.60)$ 8.45$ 3.58$ 3.86$ 1.59$ 0.61$ 5.43$ 298.8 302.5 304.3 311.2 313.7 317.4 300.6 315.6 303.3 306.4 307.6 314.1 317.0 322.4 304.9 319.8 0.81$ 0.81$ 0.54$ 0.54$ 0.54$ 0.54$ 1.62$ 1.08$ Weighted average common shares - Basic Weighted average common shares - Diluted Cash dividends declared per common share Diluted Continuing operations Discontinued operations Total Basic Continuing operations Discontinued operations Total Less: Preferred stock dividends Net income (loss) applicable to common shareholders Earnings per common share Income (loss) from discontinued operations, net of tax Net income (loss) Less: Net income (loss) attributable to noncontrolling interest Net income (loss) attributable to Allstate Income tax expense Six months ended Net income from continuing operations Interest expense Total costs and expenses Income from operations before income tax expense Amortization of deferred policy acquisition costs Operating costs and expenses Pension and other postretirement remeasurement (gains) losses Restructuring and related charges Amortization of purchased intangibles Costs and expenses Property and casualty insurance claims and claims expense Shelter-in-Place Payback expense Accident and health insurance policy benefits Interest credited to contractholder funds Accident and health insurance premiums and contract charges ^ Other revenue ^ Net investment income Realized capital gains (losses) Total revenues ($ in millions, except per share data) Revenues Property and casualty insurance premiums ^ The Allstate Corporation Condensed Consolidated Statements of Operations Three months ended The Allstate Corporation 2Q21 Supplement 1

 
($ in millions, except per share data) June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 Contribution to income Net income (loss) applicable to common shareholders 1,595$ (1,408)$ 2,598$ 1,126$ 1,224$ 513$ 187$ 1,737$ Realized capital (gains) losses (287) (426) (490) (319) (440) 162 (713) (278) Pension and other postretirement remeasurement (gains) losses (134) (310) (371) (71) 73 318 (444) 391 Curtailment (gains) losses - - - (8) - - - - Reclassification of periodic settlements and accruals on non-hedge derivative instruments - 1 (1) 1 - - 1 - Business combination expenses and the amortization of purchased intangibles 105 75 30 31 29 28 180 57 Business combination fair value adjustment (6) - - - - - (6) - (Income) loss from discontinued operations (493) 4,163 (446) 86 (167) 370 3,670 203 Income tax expense (benefit) 369 (224) 272 54 97 (189) 145 (92) Adjusted net income * 1,149$ 1,871$ 1,592$ 900$ 816$ 1,202$ 3,020$ 2,018$ Income per common share - Diluted Net income (loss) applicable to common shareholders 5.26$ (4.60)$ 8.45$ 3.58$ 3.86$ 1.59$ 0.61$ 5.43$ Realized capital (gains) losses (0.95) (1.39) (1.59) (1.01) (1.39) 0.50 (2.34) (0.87) Pension and other postretirement remeasurement (gains) losses (0.44) (1.01) (1.21) (0.22) 0.23 0.99 (1.46) 1.22 Curtailment (gains) losses - - - (0.02) - - - - Reclassification of periodic settlements and accruals on non-hedge derivative instruments - - - - - - - - Business combination expenses and the amortization of purchased intangibles 0.35 0.25 0.10 0.10 0.09 0.09 0.59 0.18 Business combination fair value adjustment (0.02) - - - - - (0.02) - (Income) loss from discontinued operations (1.63) 13.59 (1.45) 0.27 (0.52) 1.15 12.04 0.63 Income tax expense (benefit) 1.22 (0.73) 0.88 0.17 0.31 (0.59) 0.48 (0.28) Adjusted net income * 3.79$ 6.11$ 5.18$ 2.87$ 2.58$ 3.73$ 9.90$ 6.31$ Weighted average common shares - Diluted 303.3 306.4 307.6 314.1 317.0 322.4 304.9 319.8 The Allstate Corporation Contribution to Income Three months ended Six months ended The Allstate Corporation 2Q21 Supplement 2

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 26,037$ 24,649$ 28,247$ 25,293$ 25,016$ 22,203$ 301.6 304.0 308.7 307.0 315.8 318.7 86.33$ 81.08$ 91.50$ 82.39$ 79.21$ 69.67$ 26,037$ 24,649$ 28,247$ 25,293$ 25,016$ 22,203$ 2,167 1,680 3,185 2,750 2,610 534 23,870$ 22,969$ 25,062$ 22,543$ 22,406$ 21,669$ 301.6 304.0 308.7 307.0 315.8 318.7 79.14$ 75.56$ 81.19$ 73.43$ 70.95$ 67.99$ 7,996$ 7,996$ 7,825$ 6,635$ 6,634$ 6,633$ 36,203$ 34,815$ 38,042$ 33,898$ 33,620$ 30,806$ 28.3 % 29.8 % 25.9 % 24.3 % 24.6 % 27.4 % 22.1 % 23.0 % 20.6 % 19.6 % 19.7 % 21.5 % (1) (2) Total capital resources Ratio of debt to Allstate shareholders' equity Common shares outstanding were 296,891,923 and 304,192,788 as of June 30, 2021 and December 31, 2020, respectively. Excludes equity related to preferred stock of $2,170 million at June 30, 2021 and March 31, 2021 and $1,970 million at December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020. Ratio of debt to capital resources Denominator: Common shares outstanding and dilutive potential common shares outstanding Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * Total debt Numerator: Allstate common shareholders' equity Less: Unrealized net capital gains and losses on fixed income securities Adjusted Allstate common shareholders' equity Book value per common share Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities The Allstate Corporation Book Value per Common Share and Debt to Capital Denominator: Common shares outstanding and dilutive potential common shares outstanding (2) ($ in millions, except per share data) Book value per common share Numerator: Allstate common shareholders' equity (1) The Allstate Corporation 2Q21 Supplement 3

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 3,911$ 3,540$ 5,461$ 4,570$ 4,333$ 3,930$ 25,016$ 22,203$ 23,750$ 23,088$ 22,546$ 21,488$ 26,037 24,649 28,247 25,293 25,016 22,203 25,527$ 23,426$ 25,999$ 24,191$ 23,781$ 21,846$ 15.3 % 15.1 % 21.0 % 18.9 % 18.2 % 18.0 % 5,512$ 5,179$ 4,510$ 3,897$ 3,887$ 3,687$ 25,016$ 22,203$ 23,750$ 23,088$ 22,546$ 21,488$ 2,602 530 1,887 2,023 1,654 972 22,414 21,673 21,863 21,065 20,892 20,516 26,037 24,649 28,247 25,293 25,016 22,203 2,164 1,680 3,180 2,744 2,602 530 23,873 22,969 25,067 22,549 22,414 21,673 23,144$ 22,321$ 23,465$ 21,807$ 21,653$ 21,095$ 23.8 % 23.2 % 19.2 % 17.9 % 18.0 % 17.5 % (1) (2) Beginning Allstate common shareholders' equity Less: Unrealized net capital gains and losses Adjusted beginning Allstate common shareholders' equity Excludes equity related to preferred stock of $2,170 million at June 30, 2021 and March 31, 2021 and $1,970 million at December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020. Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period. Ending Allstate common shareholders' equity Less: Unrealized net capital gains and losses Adjusted ending Allstate common shareholders' equity Average adjusted Allstate common shareholders' equity ^ Adjusted net income return on Allstate common shareholders' equity * Numerator: Adjusted net income * (1) Denominator: Return on Allstate common shareholders' equity Adjusted net income return on Allstate common shareholders' equity Beginning Allstate common shareholders' equity Ending Allstate common shareholders' equity (2) Average Allstate common shareholders' equity ^ Numerator: Net income applicable to common shareholders (1) Denominator: ($ in millions) Return on Allstate common shareholders' equity Return on Allstate Common Shareholders' Equity The Allstate Corporation Twelve months ended The Allstate Corporation 2Q21 Supplement 4

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 25,614 25,453 22,260 22,360 22,451 22,311 7,111 7,090 6,643 6,634 6,616 6,590 4,816 4,774 4,530 4,528 4,489 4,460 322 325 216 219 221 224 37,863 37,642 33,649 33,741 33,777 33,585 21,920 21,824 21,809 21,900 21,978 21,826 6,459 6,427 6,427 6,414 6,391 6,360 3,694 3,629 451 460 473 485 652 663 216 220 225 230 139,453 133,510 128,982 125,831 120,301 107,124 4,013 3,996 4,042 4,075 4,101 4,096 539 540 548 558 562 576 3,041 2,702 2,700 2,490 2,312 1,932 147,046 140,748 136,272 132,954 127,276 113,728 4,452 4,522 3,950 4,092 4,410 4,309 189,361 182,912 173,871 170,787 165,463 151,622 (1) • • • • • • • • (2) Total policies in force Allstate Health and Benefits reflects certificate counts as opposed to group counts. Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. Allstate Identity Protection reflects individual customer counts for identity protection products. Allstate Protection Plans represents active consumer product protection plans. 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 Roadside reflects memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Policy counts are based on items rather than customers. PIF does not reflect banking relationships for our lender-placed insurance products to customers including fire, home and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. Commercial lines PIF for shared economy agreements reflect contracts that cover multiple drivers as opposed to individual drivers. Allstate Identity Protection Total Allstate Health and Benefits Protection Services Allstate Protection Plans Allstate Dealer Services Allstate Roadside Homeowners National General (2) Auto Homeowners Other personal lines Commercial lines Total Allstate brand Auto Policies in force statistics (in thousands) (1) Allstate Protection Auto Homeowners The Allstate Corporation Policies in Force The Allstate Corporation 2Q21 Supplement 5

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 10,323$ 9,768$ 8,609$ 9,395$ 9,172$ 8,592$ 20,091$ 17,764$ (312) (280) 244 (470) (349) 370 (592) 21 (2) 408 31 27 40 (81) 406 (41) 10,009 9,896 8,884 8,952 8,863 8,881 19,905 17,744 321 385 218 220 206 213 706 419 (7,103) (5,945) (5,268) (5,968) (5,139) (5,251) (13,048) (10,390) (29) - - - (738) (210) (29) (948) (1,319) (1,303) (1,168) (1,158) (1,149) (1,167) (2,622) (2,316) (1,384) (1,344) (1,207) (1,107) (1,133) (1,114) (2,728) (2,247) (66) (32) (36) (187) (8) (4) (98) (12) 429$ 1,657$ 1,423$ 752$ 902$ 1,348$ 2,086$ 2,250$ 952$ 590$ 424$ 990$ 1,186$ 211$ 1,542$ 1,397$ 71$ 19$ 5$ 3$ 3$ 1$ 90$ 4$ 71.0 60.1 59.3 66.7 58.0 59.1 65.5 58.5 (9.5) (6.0) (4.8) (11.1) (13.4) (2.4) (7.7) (7.9) 0.2 (0.1) - (0.8) 0.4 (0.3) 0.1 0.1 61.7 54.0 54.5 54.8 45.0 56.4 57.9 50.7 24.7 23.2 24.7 24.9 31.8 25.7 24.0 28.8 (0.7) (0.1) (0.1) - - - (0.5) - 24.0 23.1 24.6 24.9 31.8 25.7 23.5 28.8 95.7 83.3 84.0 91.6 89.8 84.8 89.5 87.3 (9.5) (6.0) (4.8) (11.1) (13.4) (2.4) (7.7) (7.9) 0.2 (0.1) - (0.8) 0.4 (0.3) 0.1 0.1 (0.7) (0.1) (0.1) - - - (0.5) - 85.7 77.1 79.1 79.7 76.8 82.1 81.4 79.5 0.6 0.3 0.4 2.1 0.1 - 0.5 0.1 - 0.1 0.1 1.5 - - - - 0.3 - - - 8.3 2.4 0.1 5.3 414$ 1,515$ 1,414$ 842$ 899$ 1,336$ 1,929$ 2,235$ 15 138 12 43 6 14 153 20 2 7 - 2 - 1 9 1 431 1,660 1,426 887 905 1,351 2,091 2,256 (2) (3) (3) (135) (3) (3) (5) (6) 429$ 1,657$ 1,423$ 752$ 902$ 1,348$ 2,086$ 2,250$ 931$ 673$ 619$ 422$ 178$ 202$ 1,604$ 380$ (283) (475) (415) (241) (210) (303) (758) (513) (2) Net investment income Income tax expense on operations Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. Answer Financial Total underwriting income for Allstate Protection Run-off Property-Liability Total underwriting income for Property-Liability Other financial information Effect of Run-off Property-Liability on combined ratio Effect of Shelter-in-Place Payback expense on combined and expense ratios (1) Underwriting income (loss) Allstate brand National General (2) Effect of amortization of purchased intangibles Underlying combined ratio * Effect of restructuring and related charges on combined ratio Effect of amortization of purchased intangibles Underlying expense ratio * Combined ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Effect of prior year non-catastrophe reserve reestimates Underlying loss ratio * Six months ended Expense ratio ^ Amortization of purchased intangibles Operating ratios and reconciliations to underlying ratios Loss ratio Effect of catastrophe losses Underwriting income (1) Catastrophe losses Claims and claims expense Shelter-in-Place Payback expense Amortization of deferred policy acquisition costs Operating costs and expenses Restructuring and related charges (Increase) decrease in unearned premiums Other Premiums earned Other revenue ($ in millions, except ratios) Premiums written The Allstate Corporation Property-Liability Results Three months ended The Allstate Corporation 2Q21 Supplement 6

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 6,883$ 6,809$ 6,103$ 6,210$ 6,172$ 6,155$ 13,692$ 12,327$ 2,411 2,392 2,090 2,073 2,054 2,037 4,803 4,091 519 505 484 486 478 471 1,024 949 196 190 207 183 159 218 386 377 10,009$ 9,896$ 8,884$ 8,952$ 8,863$ 8,881$ 19,905$ 17,744$ 394$ 1,327$ 883$ 906$ 998$ 657$ 1,721$ 1,655$ (7) 268 449 (67) (139) 581 261 442 39 33 89 42 43 90 72 133 (25) (2) (16) (14) (11) 5 (27) (6) 28 27 21 18 14 17 55 31 2 7 - 2 - 1 9 1 431$ 1,660$ 1,426$ 887$ 905$ 1,351$ 2,091$ 2,256$ 71.0 60.0 59.3 65.2 58.0 59.1 65.5 58.5 (9.5) (6.0) (4.8) (11.1) (13.4) (2.4) (7.7) (7.9) 0.2 - - 0.7 0.4 (0.3) 0.1 0.1 61.7 54.0 54.5 54.8 45.0 56.4 57.9 50.7 24.7 23.2 24.6 24.9 31.8 25.7 24.0 28.8 (0.7) (0.1) - - - - (0.5) - 24.0 23.1 24.6 24.9 31.8 25.7 23.5 28.8 95.7 83.2 83.9 90.1 89.8 84.8 89.5 87.3 85.7 77.1 79.1 79.7 76.8 82.1 81.4 79.5 3.1 3.2 3.7 2.3 2.4 2.3 3.1 2.3 0.6 0.3 0.4 2.1 0.1 - 0.5 0.1 0.3 - - - 8.3 2.4 0.1 5.3 Effect of Shelter-in-Place Payback expense on combined and expense ratios Combined ratio Underlying combined ratio * Effect of advertising expenses on combined ratio Effect of restructuring and related charges on combined ratio Expense ratio Effect of amortization of purchased intangibles Six months ended Underlying expense ratio * Operating ratios and reconciliations to underlying ratios Loss ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Underlying loss ratio * Commercial lines Other business lines ^ Answer Financial Total Underwriting income (loss) Auto Homeowners Other personal lines Auto Homeowners Other personal lines Commercial lines Total ($ in millions, except ratios) Net premiums earned The Allstate Corporation Allstate Protection Profitability Measures Three months ended The Allstate Corporation 2Q21 Supplement 7

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 6,883$ 6,809$ 6,103$ 6,210$ 6,172$ 6,155$ 13,692$ 12,327$ 394$ 1,327$ 883$ 906$ 998$ 657$ 1,721$ 1,655$ 68.7 57.2 60.2 59.7 47.9 62.2 63.0 55.1 (2.2) (0.4) (0.6) (1.6) (2.2) (0.2) (1.3) (1.2) 0.4 0.2 - 0.5 0.8 (0.4) 0.3 0.2 66.9 57.0 59.6 58.6 46.5 61.6 62.0 54.1 25.6 23.3 25.3 25.7 35.9 27.1 24.4 31.5 (0.7) (0.2) - - - - (0.4) - 24.9 23.1 25.3 25.7 35.9 27.1 24.0 31.5 94.3 80.5 85.5 85.4 83.8 89.3 87.4 86.6 (2.2) (0.4) (0.6) (1.6) (2.2) (0.2) (1.3) (1.2) 0.4 0.2 - 0.5 0.8 (0.4) 0.3 0.2 (0.7) (0.2) - - - - (0.4) - 91.8 80.1 84.9 84.3 82.4 88.7 86.0 85.6 0.4 - - - 11.9 3.4 0.2 7.7 1,421 1,471 846 902 882 897 2,892 1,779 6,036$ 6,014$ 5,977$ 6,081$ 6,037$ 6,020$ 12,050$ 12,057$ 364$ 1,203$ 882$ 897$ 966$ 659$ 1,567$ 1,625$ 94.0 80.0 85.2 85.2 84.0 89.1 87.0 86.5 92.0 79.6 84.7 84.2 82.6 88.5 85.9 85.5 658 651 603 682 664 672 1,309 1,336 268 278 227 206 204 209 546 413 600 607 621 621 612 616 604 614 87.1 86.7 87.2 87.9 87.6 87.4 86.9 87.5 47.3 (18.8) (28.7) (28.6) (46.4) (12.2) 6.6 (29.5) (4.9) 5.5 5.1 7.9 20.4 8.1 1.1 13.1 847$ 795$ 126$ 129$ 135$ 135$ 1,642$ 270$ 30$ 124$ 1$ 9$ 32$ (2)$ 154$ 30$ 96.5 84.4 99.2 93.0 76.3 101.5 90.6 88.9 89.8 83.8 96.0 89.1 74.1 100.0 86.9 87.0 495 542 16 14 14 16 1,037 30 (1) (2) Excludes 5.5 points, 1.1 points and 3.4 points in the second quarter, first quarter and first six months of 2021, respectively, related to the effect of amortization of purchased intangibles. Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. New issued application (in thousands) National General (1) Net premiums earned Underwriting income (loss) Combined ratio Underlying combined ratio * (2) Direct channel Average premium - gross written ^ ($) Renewal ratio ^ (%) Property damage gross claim frequency ^ (%) Property damage paid claim severity ^ (%) Underwriting income Combined ratio Underlying combined ratio * New issued applications (in thousands) Agency channel New issued applications (in thousands) ^ Six months ended Allstate brand Net premiums earned Combined ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Effect of amortization of purchased intangibles Underlying combined ratio * Effect of prior year non-catastrophe reserve reestimates Underlying loss ratio * Expense ratio Effect of amortization of purchased intangibles Underlying expense ratio * Net premiums earned Loss ratio Effect of catastrophe losses ($ in millions, except ratios) Allstate Protection Effect of Shelter-in-Place Payback expense on combined and expense ratios The Allstate Corporation Auto Profitability Measures Three months ended Underwriting income Operating ratios and reconciliations to underlying ratios The Allstate Corporation 2Q21 Supplement 8

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 2,411$ 2,392$ 2,090$ 2,073$ 2,054$ 2,037$ 4,803$ 4,091$ (7)$ 268$ 449$ (67)$ (139)$ 581$ 261$ 442$ 76.3 64.9 55.1 80.4 84.8 48.9 70.6 66.9 (30.3) (20.7) (16.8) (39.1) (46.4) (9.0) (25.5) (27.8) 0.3 (0.2) (0.1) 0.7 0.2 (0.1) - 0.1 46.3 44.0 38.2 42.0 38.6 39.8 45.1 39.2 24.0 23.9 23.4 22.8 22.0 22.6 24.0 22.3 (0.8) (0.2) (0.1) - - - (0.5) - 23.2 23.7 23.3 22.8 22.0 22.6 23.5 22.3 100.3 88.8 78.5 103.2 106.8 71.5 94.6 89.2 (30.3) (20.7) (16.8) (39.1) (46.4) (9.0) (25.5) (27.8) 0.3 (0.2) (0.1) 0.7 0.2 (0.1) - 0.1 (0.8) (0.2) (0.1) - - - (0.5) - 69.5 67.7 61.5 64.8 60.6 62.4 68.6 61.5 292 242 227 256 238 212 534 450 2,032$ 2,008$ 1,993$ 1,974$ 1,955$ 1,936$ 4,040$ 3,891$ 7$ 262$ 442$ (93)$ (118)$ 567$ 269$ 449$ 99.7 87.0 77.8 104.7 106.0 70.7 93.3 88.5 66.6 63.3 60.8 64.6 60.2 61.8 65.0 61.0 243 204 201 231 214 191 447 405 22 16 17 16 16 13 38 29 1,404 1,360 1,342 1,334 1,324 1,310 1,384 1,318 87.3 87.0 87.4 87.8 87.3 87.6 87.2 87.4 10.4 19.3 3.6 3.5 (8.6) (13.2) 14.5 (10.8) 8.3 1.4 0.7 3.3 9.5 15.9 4.7 12.7 379$ 384$ 97$ 99$ 99$ 101$ 763$ 200$ (14)$ 6$ 7$ 26$ (21)$ 14$ (8)$ (7)$ 103.7 98.4 92.8 73.7 121.2 86.1 101.0 103.5 84.7 90.6 76.3 68.7 68.7 75.2 87.7 72.0 27 22 9 9 8 8 49 16 (1) (2) Excludes 4.8 points, 1.0 point and 2.8 points in the second quarter, first quarter and first six months of 2021, respectively, related to the effect of amortization of purchased intangibles. Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. New issued application (in thousands) National General (1) Net premiums earned Underwriting income (loss) Combined ratio Underlying combined ratio * (2) Direct channel Average premium - gross written ($) Renewal ratio (%) Gross claim frequency (%) Paid claim severity (%) Underwriting income Combined ratio Underlying combined ratio * New issued applications (in thousands) Agency channel New issued applications (in thousands) Allstate brand Six months ended Net premiums earned Combined ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Effect of amortization of purchased intangibles Effect of prior year non-catastrophe reserve reestimates Underlying loss ratio * Expense ratio Effect of amortization of purchased intangibles Underlying expense ratio * Net premiums earned Loss ratio Effect of catastrophe losses ($ in millions, except ratios) Allstate Protection Underlying combined ratio * The Allstate Corporation Homeowners Profitability Measures Three months ended Underwriting income (loss) Operating ratios and reconciliations to underlying ratios The Allstate Corporation 2Q21 Supplement 9

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 692$ 583$ 559$ 485$ 467$ 379$ 1,275$ 846$ 435$ 411$ 395$ 384$ 360$ 354$ 846$ 714$ 88 90 53 52 51 52 178 103 46 41 38 36 35 38 87 73 12 10 11 12 11 10 22 21 (109) (103) (102) (107) (85) (92) (212) (177) (194) (181) (176) (169) (160) (153) (375) (313) (203) (198) (167) (160) (163) (161) (401) (324) (4) (9) (2) 2 (3) - (13) (3) (15) (12) (12) (10) (8) (11) (27) (19) 56 49 38 40 38 37 105 75 7 8 8 7 6 7 15 13 4 9 2 (2) 3 - 13 3 15 12 12 10 8 11 27 19 82$ 78$ 60$ 55$ 55$ 55$ 160$ 110$ 467$ 388$ 385$ 300$ 310$ 221$ 855$ 531$ 279$ 260$ 248$ 236$ 219$ 206$ 539$ 425$ 295 275 263 251 232 219 570 451 (70) (66) (69) (70) (56) (55) (136) (111) (100) (91) (87) (83) (75) (70) (191) (145) (70) (61) (61) (56) (57) (50) (131) (107) (2) - - 3 - - (2) - (11) (12) (14) (9) (9) (10) (23) (19) 42$ 45$ 32$ 36$ 35$ 34$ 87$ 69$ 130$ 123$ 121$ 121$ 118$ 117$ 253$ 235$ 10 8 7 7 8 7 18 15 60$ 59$ 58$ 59$ 53$ 60$ 119$ 113$ 2 4 4 4 2 2 6 4 64$ 64$ 26$ 25$ 26$ 30$ 128$ 56$ 1 2 (2) (3) (3) (3) 3 (6) 32$ 31$ 29$ 28$ 28$ 28$ 63$ 56$ 1 (10) (3) (4) (4) (3) (9) (7) (1) Net premiums earned Revenue ^ Adjusted net income is the GAAP segment measure. Adjusted net income Allstate Dealer Services Revenue Adjusted net income Allstate Roadside Revenue Adjusted net income Arity Revenue Adjusted net income (loss) Allstate Identity Protection Revenue Adjusted net income (loss) Other costs and expenses ^ Restructuring and related charges Income tax expense on operations Amortization of deferred policy acquisition costs Operating costs and expenses Restructuring and related charges Income tax expense on operations Adjusted net income (1) Claims and claims expense Amortization of deferred policy acquisition costs Depreciation Restructuring and related charges Income tax expense on operations Adjusted earnings before taxes, depreciation and restructuring * Allstate Protection Plans Net premiums written Net premiums earned Other revenue Intersegment insurance premiums and service fees Net investment income Claims and claims expense ($ in millions) Protection Services Net premiums written The Allstate Corporation Protection Services Segment Results Three months ended Six months ended The Allstate Corporation 2Q21 Supplement 10

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 421$ 428$ 235$ 247$ 237$ 253$ 849$ 490$ 26 27 27 40 26 29 53 55 83 80 - - - - 163 - 19 19 20 18 20 20 38 40 (244) (233) (124) (128) (123) (141) (477) (264) (8) (9) (7) (8) (9) (9) (17) (18) (32) (39) (38) (59) (35) (45) (71) (80) (186) (190) (69) (68) (110) (1) (75) (376) (185) (1) - - - (1) - (1) (1) (16) (18) (10) (9) - (8) (34) (8) 62$ 65$ 34$ 33$ 5$ 24$ 127$ 29$ 54.6 % 51.2 % 47.3 % 44.6 % 46.8 % 50.0 % 52.9 % 48.4 % 255$ 263$ 262$ 287$ 263$ 282$ 518$ 545$ 87 83 - - - - 170 - 105 109 - - - - 214 - 447$ 455$ 262$ 287$ 263$ 282$ 902$ 545$ (1) Individual accident and health ^ Total Includes $41 million write-off of capitalized software costs associated with a billing system. Six months ended Adjusted net income ^ Benefit ratio ^ Premiums and contract charges Employer voluntary benefits ^ Interest credited to contractholder funds Amortization of deferred policy acquisition costs Operating costs and expenses Restructuring and related charges Income tax expense on operations Premiums Net investment income Accident and health insurance policy benefits ($ in millions) Allstate Health and Benefits Group health ^ The Allstate Corporation Allstate Health and Benefits Segment Results and Other Statistics Three months ended Contract charges Other revenue The Allstate Corporation 2Q21 Supplement 11

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 2$ -$ -$ -$ -$ -$ 2$ -$ 12 6 10 12 11 14 18 25 (28) (32) (37) (23) (25) (25) (60) (50) - (10) (1) (11) - - (10) - (91) (86) (80) (78) (79) (81) (177) (160) 23 26 23 16 20 21 49 41 (30) (27) (26) (27) (26) (36) (57) (62) (112)$ (123)$ (111)$ (111)$ (99)$ (107)$ (235)$ (206)$ The Allstate Corporation Corporate and Other Segment Results Three months ended Adjusted net loss ^ Six months ended Operating costs and expenses Restructuring and related charges Interest expense Income tax benefit on operations Preferred stock dividends ($ in millions) Net investment income Other revenue The Allstate Corporation 2Q21 Supplement 12

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 42,825$ 40,594$ 42,565$ 43,683$ 42,034$ 38,447$ 42,825$ 42,034$ 3,059 3,154 3,168 2,977 2,638 2,331 3,059 2,638 786 902 746 788 805 766 786 805 7,073 6,367 4,563 4,284 4,093 4,154 7,073 4,093 5,516 6,017 6,807 3,145 4,140 4,580 5,516 4,140 3,311 3,042 1,691 1,860 1,949 1,841 3,311 1,949 62,570$ 60,076$ 59,540$ 56,737$ 55,659$ 52,119$ 62,570$ 55,659$ 290$ 301$ 314$ 314$ 306$ 298$ 591$ 604$ 13 14 29 18 21 10 27 31 12 10 9 8 8 9 22 17 651 378 309 123 (117) (77) 1,029 (194) 1 1 2 2 2 11 2 13 48 41 33 29 31 31 89 62 1,015 745 696 494 251 282 1,760 533 (41) (37) (36) (30) (31) (36) (78) (67) 974$ 708$ 660$ 464$ 220$ 246$ 1,682$ 466$ 2.9 % 3.1 % 3.1 % 3.1 % 3.1 % 3.2 % 3.0 % 3.2 % 115$ 246$ 212$ 214$ 160$ 388$ 361$ 548$ 12 2 (3) 7 1 (37) 14 (36) 163 167 294 128 265 (591) 330 (326) (3) 11 (13) (30) 14 78 8 92 287$ 426$ 490$ 319$ 440$ (162)$ 713$ 278$ 1.6 % 1.2 % 1.1 % 0.8 % 0.4 % 0.5 % 2.8 % 0.8 % 0.7 (1.8) 1.0 0.8 3.9 (1.5) (1.1) 2.4 0.3 0.4 0.6 0.2 0.5 (1.1) 0.7 (0.6) 2.6 % (0.2) % 2.7 % 1.8 % 4.8 % (2.1) % 2.4 % 2.6 % 4.64 4.81 5.17 5.14 5.15 5.10 4.64 5.15 Valuation-interest bearing Valuation-equity investments Total Fixed income securities portfolio duration ^ (in years) Valuation and settlements of derivative instruments Total Total return on investment portfolio ^ Net investment income Credit losses Valuation of equity investments Investment Position and Results The Allstate Corporation As of or for the six months ended Pre-tax yields on fixed income securities ^ Realized capital gains (losses), pre-tax by transaction type Sales Short-term Other Investment income, before expense Less: Investment expense Net investment income Net investment income Fixed income securities Equity securities Mortgage loans Limited partnership interests Mortgage loans, net Limited partnership interests ^ Short-term, at fair value Other investments, net Total ($ in millions) Investment position Fixed income securities, at fair value As of or for the three months ended Equity securities ^ The Allstate Corporation 2Q21 Supplement 13

 
June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 June 30, 2021 June 30, 2020 51,367$ 49,422$ 50,975$ 48,581$ 48,062$ 44,762$ 51,367$ 48,062$ 2,676 2,787 2,884 2,732 2,395 2,095 2,676 2,395 317 298 257 215 180 162 317 180 54,360$ 52,507$ 54,116$ 51,528$ 50,637$ 47,019$ 54,360$ 50,637$ 6,327$ 5,702$ 3,965$ 3,689$ 3,491$ 3,608$ 6,327$ 3,491$ 1,883 1,867 1,459 1,520 1,531 1,492 1,883 1,531 8,210$ 7,569$ 5,424$ 5,209$ 5,022$ 5,100$ 8,210$ 5,022$ 330$ 331$ 339$ 339$ 331$ 336$ 661$ 667$ 17 15 28 19 20 24 32 44 9 9 4 1 2 1 18 3 356 355 371 359 353 361 711 714 (1) (1) (1) (1) (1) (1) (2) (2) 355$ 354$ 370$ 358$ 352$ 360$ 709$ 712$ 2.7 % 2.8 % 2.9 % 2.9 % 2.9 % 3.1 % 2.8 % 3.0 % 552$ 330$ 277$ 134$ (110)$ (95)$ 882$ (205)$ 107 60 48 1 8 16 167 24 659 390 325 135 (102) (79) 1,049 (181) (10) (12) (11) (6) (8) (7) (22) (15) 649$ 378$ 314$ 129$ (110)$ (86)$ 1,027$ (196)$ 33.0 % 20.7 % 23.7 % 10.0 % (8.7) % (6.7) % 27.0 % (7.7) % 1.7 % (1.1) % 2.3 % 1.8 % 5.5 % (2.2) % 0.7 % 3.4 % 8.6 6.3 6.8 2.3 (2.3) (1.2) 14.9 (3.5) 12.1 % 11.7 % 11.5 % 11.5 % 11.3 % 12.1 % 12.1 10.8 9.6 8.5 8.6 10.2 10.7 8.5 8.0 7.2 7.5 10.4 27.3 11.1 4.4 (1.1) (2.2) 6.5 (1) Calculations are based on consolidated results including held for sale investments. Investment income, before expense Investee level expenses Income for yield calculation Pre-tax yield Total return on investments portfolio Market-based Performance-based Internal rate of return (1) ^ Performance-based 10 year 5 year 3 year 1 year Private equity Real estate Investment Position and Results by Strategy The Allstate Corporation As of or for the six months ended Income for yield calculation Pre-tax yield Performance-based Interest-bearing investments Equity securities LP and other alternative investments Investment income, before expense Investee level expenses Real estate Total Investment income Market-based Equity securities ^ LP and other alternative investments ^ Total Performance-based ^ Private equity ($ in millions) Investment Position Market-based ^ As of or for the three months ended Interest-bearing investments ^ The Allstate Corporation 2Q21 Supplement 14

 
• realized capital gains and losses except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income, • pension and other postretirement remeasurement gains and losses, • business combination expenses and the amortization or impairment of purchased intangibles, • income or loss from discontinued operations, • adjustments for other significant non-recurring, infrequent or unusual items when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years, and • related income tax expense or benefit of these items. Underlying expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of amortization or impairment of purchased intangibles on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the amortization or impairment of purchased intangible assets. Amortization or Impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our 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. The most directly comparable GAAP measure is the expense ratio. The underlying expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business. A reconciliation of underlying expense ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures". Underlying combined ratio is a non-GAAP ratio, which is the sum of underlying loss and underlying expense ratios. 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. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedule "Property-Liability Results", "Auto Profitability Measures" and "Homeowners Profitability Measures". Definitions of Non-GAAP Measures We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. Adjusted net income is net income (loss) applicable to common shareholders, excluding: Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income. We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial service business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, business combination expenses, and the amortization or impairment of purchased intangibles, income or loss from discontinued operations and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Realized capital gains and losses and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Business combination expenses and income or loss from discontinued operations are excluded because they are non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of adjusted net income to net income (loss) applicable to common shareholders is provided in the schedule, "Contribution to Income". Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio, and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures". The Allstate Corporation 2Q21 Supplement 15

 
Definitions of Non-GAAP Measures (continued) Protection Services adjusted earnings before taxes, depreciation and restructuring, is a non-GAAP measure, which is computed as adjusted net income (loss), excluding taxes, depreciation and restructuring. Adjusted net income (loss) is the GAAP measure that is most directly comparable to adjusted earnings before taxes, depreciation and restructuring. We use adjusted earnings before taxes, depreciation and restructuring, as an important measure to evaluate Protection Services' results of operations. We believe that the measure provides investors with a valuable measure of Protection Services' ongoing performance because it reveals trends that may be obscured by the taxes,depreciation and restructuring expenses. Taxes, depreciation and restructuring are excluded because these are not directly attributable to the underlying operating performance of Protection Services' segment. Adjusted earnings before taxes, depreciation and restructuring highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of adjusted net income (loss) to assess our performance. We believe it is useful for investors to evaluate adjusted net income (loss), adjusted earnings before taxes, depreciation and restructuring, and their components separately and in the aggregate when reviewing and evaluating Protection Services segment’s performance. Adjusted earnings before taxes, depreciation and restructuring should not be considered a substitute for adjusted net income (loss) and does not reflect the overall profitability of our business. A reconciliation of adjusted net income (loss) to adjusted earnings before taxes, depreciation and restructuring, is provided in the schedule, "Protection Services Segment Results". Adjusted net income return on Allstate common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders' equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders' equity from return on Allstate common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders' equity and return on Allstate common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders' equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Adjusted net income return on Allstate common shareholders' equity should not be considered a substitute for return on Allstate common shareholders' equity and does not reflect the overall profitability of our business. A reconciliation of return on Allstate common shareholders' equity and adjusted net income return on Allstate common shareholders' equity can be found in the schedule, "Return on Allstate Common Shareholders' Equity". Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAP measure. It is calculated by dividing Allstate common shareholders’ equity after excluding the impact of unrealized net capital gains and losses on fixed income securities and related DAC, DSI and life insurance reserves by total common shares outstanding plus dilutive potential common shares outstanding. We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common share to identify and analyze the change in net worth applicable to management efforts between periods. We believe the non-GAAP ratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business. A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share and Debt to Capital". The Allstate Corporation 2Q21 Supplement 16

 
Glossary Consolidated Operations Accident and health insurance premiums and contract charges are reported in the Allstate Health and Benefits segment and include employer voluntary benefits, group health and individual accident and health products. Adjusted net income is the GAAP segment measure used for the Protection Services, Allstate Health and Benefits, and Corporate and Other segments. Average Allstate common shareholders' equity and average adjusted Allstate common shareholders' equity are determined using a two-point average, with the beginning and ending Allstate common shareholders' equity and Allstate adjusted common shareholders' equity, respectively, for the twelve-month period as data points. 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. Property and casualty insurance premiums are reported in the Allstate Protection and Protection Services segments and include auto, homeowners, other personal lines and commercial lines insurance products, as well as consumer product proteion plans, roadside assistance and finance and insurance products. Property-Liability 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 generally 6 months for auto and 12 months for homeowners. Expense ratio: Other revenue is deducted from other costs and expenses in the expense ratio calculation. 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. 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. Other business lines primarily represent commissions earned and other costs and expenses for Ivantage and non-proprietary life and annuity products. 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. Renewal ratio: Renewal policy item counts issued during the period, based on contract effective dates, divided by the total policy item counts issued generally 6 months prior for auto or 12 months prior for homeowners. Allstate Health and Benefits Investments Duration measures the price sensitivity of assets and liabilities to changes in interest rates. Equity securities include investments in exchange traded and mutual funds whose underlying investments are fixed income securities. Interest-bearing investments comprise fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives. Internal rate of return is one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of return on the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments. Limited partnership interests: Income from equity method of accounting LP is generally recognized on a three-month delay due to the availability of the related financial statements from investees. LP and other investments comprise limited partnership interests and other alternative investments, including real estate investments classified as other investments. Market-based investments include publicly traded equity securities classified as limited partnerships. Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities. Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity and real estate. Pre-tax yields: Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the ending investment balances of the current and prior quarter. Year-to-date pre-tax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate and other investments is net of investee level expenses (asset level operating expenses reported in investment expense). Fixed income securities investment balances exclude unrealized capital gains and losses. Equity securities investment balances use cost in the calculation. Total return on investment portfolio is calculated from GAAP results, including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans, bank loans and agent loans divided by the average fair value balances. Employer voluntary benefits include supplemental life and health products offered through workplace enrollment. Group health includes health products sold to employers for use by their employees. Individual accident and health includes short-term medical and supplemental products sold directly to individuals. Protection Services Other costs and expenses may include amortization of deferred policy acquisition costs, operating costs and expenses, and restructuring and related charges. Revenue may include net premiums earned, intersegment insurance premiums and service fees, other revenue, revenue earned from external customers and net investment income. Benefit ratio is contract benefits divided by premiums and contract charges. The Allstate Corporation 2Q21 Supplement 17