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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported): July 30, 2019
THE ALLSTATE CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
 
1-11840
 
36-3871531
(State or other
jurisdiction of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 2775 Sanders Road, Northbrook, Illinois    60062
(Address of principal executive offices)    (Zip Code)
 
Registrant’s telephone number, including area code  (847) 402-5000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbols
Name of each exchange on which registered
Common Stock, par value $0.01 per share
ALL
New York Stock Exchange
Chicago Stock Exchange
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053
ALL.PR.B
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series A
ALL PR A
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 6.625% Noncumulative Preferred Stock, Series D
ALL PR D
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 6.625% Noncumulative Preferred Stock, Series E
ALL PR E
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 6.250% Noncumulative Preferred Stock, Series F
ALL PR F
New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G
ALL PR G
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
 
Emerging growth company
☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____


1


Section 2 – Financial Information
 
Item 2.02.                             Results of Operations and Financial Condition.
 
The Registrant’s press release dated July 30, 2019, announcing its financial results for the second quarter of 2019, and the Registrant’s second quarter 2019 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 July 30, 2019
99.2                                                Second quarter 2019 Investor Supplement of The Allstate Corporation
101     Cover Page XBRL Instance Document
































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/ Eric K. Ferren
 
Name: Eric K. Ferren
 
Title: Senior Vice President, Controller and Chief Accounting Officer

Date: July 30, 2019

3
Exhibit

Exhibit 99.1

https://cdn.kscope.io/85a40b62bba86151e922b045a21b611a-earningsreleaseimagea22.jpg
FOR IMMEDIATE RELEASE

Contacts:    
Greg Burns                John Griek
Media Relations          Investor Relations
(847) 402-5600                (847) 402-2800

Allstate’s Profitable Growth Continues in Second Quarter
Strategy generates attractive returns

NORTHBROOK, Ill., July 30, 2019 – The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2019.

The Allstate Corporation Consolidated Highlights
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions, except per share data and ratios)
2019
2018
% / pts
Change
 
2019
2018
% / pts
Change
Consolidated revenues
$
11,144

$
10,099

10.3

 
$
22,134

$
19,869

11.4

Net income applicable to common shareholders
821

678

21.1

 
2,082

1,655

25.8

per diluted common share
2.44

1.91

27.7

 
6.17

4.63

33.3

Adjusted net income*
735

710

3.5

 
1,511

1,818

(16.9
)
per diluted common share*
2.18

2.00

9.0

 
4.48

5.09

(12.0
)
Return on common shareholders’ equity (trailing twelve months)
 
 
 
 
 
Net income applicable to common shareholders
 
 


 
11.2
%
18.5
%
(7.3
)
Adjusted net income*
 
 


 
13.5
%
17.0
%
(3.5
)
Book value per common share
 
 


 
67.28

59.16

13.7

Property-Liability combined ratio
 
 
 
 
 
 
 
Recorded
95.8

94.4

1.4

 
93.8

91.0

2.8

Underlying combined ratio* (excludes catastrophes, prior year reserve reestimates and amortization of purchased intangibles)
84.4

85.0

(0.6
)
 
84.3

84.3

—

Property and casualty insurance premiums written
9,393

8,838

6.3

 
18,088

16,969

6.6

Catastrophe losses
1,072

906

18.3

 
1,752

1,267

38.3

Total policies in force (in thousands)
 
 


 
129,827

88,434

46.8

*
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’s customer-driven strategy produced excellent results in the second quarter,” said Tom Wilson, Chair, President and Chief Executive Officer of The Allstate Corporation. “Revenues exceeded $11 billion and total policies in force grew to over 129 million, reflecting SquareTrade’s exceptional growth. The Allstate and Esurance brand strategies are working, with 793,000 policies added, which was a 2.5% increase compared to prior year. Property-Liability insurance premiums written increased by $985 million through the first six months. Investments, Allstate Life, Allstate Benefits and the Service Businesses also had strong results. Net income rose to $821 million, and adjusted net income* totaled $735 million in the quarter, or $2.18 per share.



1

“The strategy of increasing market share in Property-Liability products and expanding into other protection products is gaining momentum. This is supported by excellent operating results which have led us to improve our outlook for the 2019 Property-Liability underlying combined ratio* by 1.5 points to 84.5 to 86.5(1). Importantly, overall results generated a 13.5% adjusted net income return on equity*. Shareholders have also been provided strong cash returns with $643 million of common shareholder dividends and $1.8 billion of common share repurchases (5.6% of outstanding shares) over the last 12 months,” concluded Wilson.

Second Quarter 2019 Results

•
Total revenue of $11.14 billion in the second quarter of 2019 increased 10.3% compared to the prior year quarter as Property-Liability insurance premiums earned increased 6.0%. Net investment income also grew by 14.3% and realized capital gains increased revenues by $324 million.

•
Net income applicable to common shareholders was $821 million, or $2.44 per diluted share, in the second quarter of 2019, compared to net income of $678 million, or $1.91 per diluted share, in the second quarter of 2018. Adjusted net income* of $735 million for the second quarter was above the prior year quarter due to higher earned premium and net investment income, partially offset by increased catastrophe losses.

Property-Liability Results
 
Three months ended June 30,
 
Six months ended June 30,
(% to earned premiums)
2019
2018
pts
Change
 
2019
2018
pts
Change
Recorded Combined Ratio
95.8

94.4

1.4

 
93.8

91.0

2.8

Allstate Brand Auto
92.8

92.5

0.3

 
91.6

90.2

1.4

Allstate Brand Homeowners
104.3

97.9

6.4

 
98.3

89.2

9.1

Esurance Brand
100.6

101.9

(1.3
)
 
100.0

100.7

(0.7
)
Encompass Brand
97.2

98.0

(0.8
)
 
99.0

97.9

1.1

 
 
 
 
 
 
 
 
Underlying Combined Ratio*
84.4

85.0

(0.6
)
 
84.3

84.3

—

Allstate Brand Auto
91.1

92.3

(1.2
)
 
90.7

90.9

(0.2
)
Allstate Brand Homeowners
62.1

62.9

(0.8
)
 
62.9

63.0

(0.1
)
Esurance Brand
96.2

95.9

0.3

 
96.8

97.1

(0.3
)
Encompass Brand
89.8

85.2

4.6

 
89.2

86.2

3.0


•
Property-Liability underwriting income of $367 million in the second quarter of 2019 was $88 million below the prior year quarter, primarily due to higher catastrophe losses.

◦
The underlying combined ratio* of 84.4 for the second quarter of 2019 was 0.6 points below the prior year quarter due to lower operating expenses partially offset by increased claim severity. Auto insurance profitability continued to benefit from lower accident frequency.

◦
Non-catastrophe prior year reserve releases of $86 million in the second quarter of 2019 included favorable personal lines auto injury coverages development, partially offset by strengthening in commercial reserves.

◦
Allstate brand auto insurance net written premium grew 5.0% in the second quarter of 2019 compared to the prior year quarter, reflecting a 2.5% increase in policies in force and higher average premium. The recorded combined ratio of 92.8 in the second quarter of 2019 was 0.3 points higher than the prior year quarter. The underlying combined ratio* of 91.1 in the quarter was 1.2 points lower than the second quarter of 2018 due to higher premiums earned, reduced operating expenses and lower accident frequency, partially offset by increased claim severity.

_________
(1) A reconciliation of this non-GAAP measure to the combined ratio, a GAAP measure, is not possible on a forward-looking basis because it is not possible to provide a reliable forecast of catastrophes, and prior year reserve reestimates are expected to be zero because reserves are determined based on our best estimate of ultimate loss reserves as of the reporting date.


2

◦
Allstate brand homeowners insurance net written premium grew 6.5% in the second quarter of 2019 compared to the prior year quarter due to a 5.6% increase in average premiums and 1.6% growth in policies in force. The recorded combined ratio of 104.3 in the second quarter was 6.4 points higher than the second quarter of 2018, primarily driven by elevated catastrophe losses. The underlying combined ratio* of 62.1 was 0.8 points lower than the prior year quarter due to higher premiums earned, reduced operating expenses and lower frequency, partially offset by increased claim severity.

◦
Esurance brand policies in force increased 8.4% in the second quarter of 2019 compared to the prior year quarter, resulting in net written premium growth of 9.6%. The recorded combined ratio of 100.6 in the second quarter of 2019 was 1.3 points lower than the prior year quarter, while the underlying combined ratio* of 96.2 was 0.3 points higher than the second quarter of 2018, primarily due to increased claim severity partially offset by higher premiums earned.

◦
Encompass brand net written premium increased 1.1% in the second quarter of 2019 compared to the prior year quarter as higher average premiums offset a small decline in policies in force. The recorded combined ratio of 97.2 in the second quarter of 2019 was 0.8 points lower than the prior year quarter, due to lower catastrophe losses and reduced expenses, partially offset by higher non-catastrophe losses. The underlying combined ratio* of 89.8 in the second quarter was 4.6 points higher than the second quarter of 2018.

Service Businesses Results
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
2019
2018
% / $
Change
 
2019
2018
% / $
Change
Total Revenues
$
405

$
320

26.6
 %
 
$
797

$
633

25.9
 %
SquareTrade
170

122

39.3

 
334

244

36.9

Allstate Roadside Services
73

77

(5.2
)
 
146

151

(3.3
)
Allstate Dealer Services
114

100

14.0

 
221

196

12.8

Arity
25

21

19.0

 
49

42

16.7

InfoArmor
23

—

NA

 
47

—

NA

Adjusted Net Income (Loss)
$
16

$
2

$
14

 
$
27

$
(1
)
$
28

SquareTrade
19

5

14

 
33

7

26

Allstate Roadside Services
(3
)
(4
)
1

 
(9
)
(9
)
—

Allstate Dealer Services
7

4

3

 
13

7

6

Arity
(1
)
(3
)
2

 
(3
)
(6
)
3

InfoArmor
(6
)
—

NA

 
(7
)
—

NA

NA = not applicable

•
Service Businesses policies in force grew to 89.7 million, and revenues increased 26.6% compared to the second quarter of 2018. Adjusted net income was $16 million, an increase of $14 million compared to the prior year quarter.

◦
SquareTrade revenue was $170 million in the second quarter of 2019, reflecting policy growth of 39.5 million compared to the second quarter of 2018. Adjusted net income was $19 million in the second quarter of 2019, due to higher premiums and improved loss experience.

◦
Allstate Roadside Services revenue was $73 million in the second quarter of 2019. The adjusted net loss of $3 million in the second quarter was comparable to the prior year quarter.

◦
Allstate Dealer Services revenue grew 14.0% compared to the second quarter of 2018, and adjusted net income was $7 million, reflecting higher premiums and improved loss experience.

◦
Arity revenue was $25 million in the second quarter of 2019, primarily from contracts with affiliates. The adjusted net loss of $1 million in the quarter includes product development costs.

◦
InfoArmor had revenues of $23 million and an adjusted net loss of $6 million in the second quarter of 2019, related to growth and integration investments.

3


Allstate Life, Benefits and Annuities Results
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
2019
2018
% Change
 
2019
2018
% Change
Premiums and Contract Charges
 
 
 
 
 
 
 
Allstate Life
$
333

$
326

2.1
 %
 
$
670

$
653

2.6
 %
Allstate Benefits
284

283

0.4

 
572

569

0.5

Allstate Annuities
4

3

33.3

 
7

6

16.7

Adjusted Net Income
 
 


 
 
 


Allstate Life
$
68

$
80

(15.0
)%
 
$
141

$
151

(6.6
)%
Allstate Benefits
37

36

2.8

 
68

65

4.6

Allstate Annuities
52

44

18.2

 
27

79

(65.8
)
•
Allstate Life adjusted net income was $68 million in the second quarter of 2019, $12 million lower than the prior year quarter, as higher contract benefits and expenses were partially offset by increased premiums.

•
Allstate Benefits adjusted net income was $37 million in the second quarter of 2019, $1 million higher than the prior year quarter, as increased revenue was partially offset by higher operating costs and expenses.

•
Allstate Annuities adjusted net income of $52 million in the second quarter of 2019 was $8 million higher than the prior year quarter due to increased performance-based investment income.

Allstate Investment Results
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions, except ratios)
2019
2018
% / pts
Change
 
2019
2018
% / pts
Change
Net investment income
$
942

$
824

14.3
 
$
1,590

$
1,610

(1.2
)
Market-based investment income(1)
731

696

5.0
 
1,424

1,348

5.6

Performance-based investment income(1)
261

176

48.3
 
267

357

(25.2
)
Realized capital gains and losses
324

(25
)
NM
 
986

(159
)
NM

Change in unrealized net capital gains, pre-tax
1,104

(324
)
NM
 
2,439

(1,326
)
NM

Total return on investment portfolio
2.8
%
0.5
%
2.3
 
6.1
%
—
%
6.1

Total return on investment portfolio (trailing twelve months)
 
 

 
7.0
%
2.5
%
4.5

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

•
Allstate Investments $86 billion portfolio generated a strong total return of 2.8% in the second quarter of 2019, and net investment income was $942 million, an increase of $118 million from the prior year quarter.

◦
Total return on the investment portfolio of 7.0% for the latest 12 months reflects proactive risk and return positioning.

◦
Market-based investments contributed $731 million of investment income in the second quarter of 2019, an increase of $35 million, or 5.0%, compared to the prior year quarter. The market-based portfolio benefited from investment at higher market yields and a duration extension of the fixed income portfolio.

◦
Performance-based investments generated investment income of $261 million in the second quarter of 2019, an increase of $85 million, or 48.3%, compared to the prior year quarter. Additionally, there were $37 million in capital gains, primarily from the sale of direct investments. The trailing 12-month performance-based return was 9.3%.

◦
Net realized capital gains were $324 million in the second quarter of 2019, compared to losses of $25 million in the prior year quarter. Net realized gains for the quarter were primarily related to higher valuation of equity investments and gains related to the sale of market-based and performance-based investments.


4

◦
Unrealized net capital gains increased $1.1 billion from the first quarter of 2019, as lower market yields resulted in higher fixed income valuations.


Proactive Capital Management

“Allstate’s shareholders benefited from excellent returns which resulted in strong cash proceeds and an increase in book value,” said Mario Rizzo, Chief Financial Officer. “Adjusted net income return on common shareholders’ equity* was 13.5% for the 12 months ended June 30, 2019. Allstate also returned $664 million of capital to shareholders during the second quarter through a combination of $166 million in common stock dividends and repurchasing $498 million of outstanding shares, including the settlement of the accelerated share repurchase program. Book value per diluted common share of $67.28 was 13.7% higher than June 30, 2018, reflecting strong income generation and appreciation of the investment portfolio.”





Visit www.allstateinvestors.com to view additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be held at 9:00 a.m. ET on Wednesday, July 31.


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, 2019
 
December 31, 2018
Assets
 
 
 
Investments:
 
 
 
Fixed income securities, at fair value (amortized cost $56,008 and $57,134)
$
58,484

 
$
57,170

Equity securities, at fair value (cost $6,673 and $4,489)
7,906

 
5,036

Mortgage loans
4,687

 
4,670

Limited partnership interests
7,818

 
7,505

Short-term, at fair value (amortized cost $3,740 and $3,027)
3,740

 
3,027

Other
3,856

 
3,852

Total investments
86,491

 
81,260

Cash
599

 
499

Premium installment receivables, net
6,380

 
6,154

Deferred policy acquisition costs
4,667

 
4,784

Reinsurance and indemnification recoverables, net
9,292

 
9,565

Accrued investment income
633

 
600

Property and equipment, net
1,058

 
1,045

Goodwill
2,547

 
2,530

Other assets
3,649

 
3,007

Separate Accounts
3,058

 
2,805

Total assets
$
118,374

 
$
112,249

Liabilities
 
 
 
Reserve for property and casualty insurance claims and claims expense
$
28,105

 
$
27,423

Reserve for life-contingent contract benefits
12,337

 
12,208

Contractholder funds
17,964

 
18,371

Unearned premiums
14,752

 
14,510

Claim payments outstanding
915

 
1,007

Deferred income taxes
997

 
425

Other liabilities and accrued expenses
9,142

 
7,737

Long-term debt
6,628

 
6,451

Separate Accounts
3,058

 
2,805

Total liabilities
93,898

 
90,937

Shareholders’ equity
 
 
 
Preferred stock and additional capital paid-in, $1 par value, 79.8 thousand shares issued and outstanding, $1,995 aggregate liquidation preference
1,930

 
1,930

Common stock, $.01 par value, 900 million issued, 330 million and 332 million shares outstanding
9

 
9

Additional capital paid-in
3,477

 
3,310

Retained income
45,803

 
44,033

Deferred Employee Stock Ownership Plan expense
(3
)
 
(3
)
Treasury stock, at cost (570 million and 568 million shares)
(28,500
)
 
(28,085
)
Accumulated other comprehensive income:
 
 
 
Unrealized net capital gains and losses:
 
 
 
Unrealized net capital gains and losses on fixed income securities with OTTI
83

 
75

Other unrealized net capital gains and losses
1,865

 
(51
)
Unrealized adjustment to DAC, DSI and insurance reserves
(294
)
 
(26
)
Unrealized net capital gains and losses
1,654

 
(2
)
Unrealized foreign currency translation adjustments
(40
)
 
(49
)
Unamortized pension and other postretirement prior service credit
146

 
169

Total accumulated other comprehensive income
1,760

 
118

Total shareholders’ equity
24,476

 
21,312

Total liabilities and shareholders’ equity
$
118,374

 
$
112,249





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,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
Property and casualty insurance premiums
$
8,986

 
$
8,460

 
$
17,788

 
$
16,746

Life premiums and contract charges
621

 
612

 
1,249

 
1,228

Other revenue
271

 
228

 
521

 
444

Net investment income
942

 
824

 
1,590

 
1,610

Realized capital gains and losses:
 
 
 

 
 
 
 
Total other-than-temporary impairment (“OTTI”) losses
(12
)
 
(4
)
 
(28
)
 
(4
)
OTTI losses reclassified to (from) other comprehensive income
(3
)
 
—

 
(1
)
 
(1
)
Net OTTI losses recognized in earnings
(15
)
 
(4
)
 
(29
)
 
(5
)
Sales and valuation changes on equity investments and derivatives
339

 
(21
)
 
1,015

 
(154
)
Total realized capital gains and losses
324

 
(25
)
 
986

 
(159
)
Total revenues
11,144

 
10,099

 
22,134

 
19,869

 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
Property and casualty insurance claims and claims expense
6,356

 
5,777

 
12,176

 
10,906

Life contract benefits
511

 
483

 
1,008

 
987

Interest credited to contractholder funds
156

 
165

 
318

 
326

Amortization of deferred policy acquisition costs
1,362

 
1,296

 
2,726

 
2,569

Operating costs and expenses
1,380

 
1,358

 
2,760

 
2,661

Pension and other postretirement remeasurement gains and losses
125

 
(7
)
 
140

 
7

Restructuring and related charges
9

 
23

 
27

 
42

Amortization of purchased intangibles
32

 
23

 
64

 
45

Impairment of purchased intangibles
55

 
—

 
55

 
—

Interest expense
82

 
86

 
165

 
169

Total costs and expenses
10,068

 
9,204

 
19,439

 
17,712

 
 
 
 
 
 
 
 
Gain on disposition of operations
2

 
2

 
3

 
3

 
 
 
 
 
 
 
 
Income from operations before income tax expense
1,078

 
897

 
2,698

 
2,160

 
 
 
 
 
 
 
 
Income tax expense
227

 
180

 
555

 
437

 
 
 
 
 
 
 
 
Net income
851

 
717

 
2,143

 
1,723

 
 
 
 
 
 
 
 
Preferred stock dividends
30

 
39

 
61

 
68

 
 
 
 
 
 
 
 
Net income applicable to common shareholders
$
821

 
$
678

 
$
2,082

 
$
1,655

 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common shareholders per common share – Basic
$
2.47

 
$
1.94

 
$
6.27

 
$
4.71

 
 
 
 
 
 
 
 
Weighted average common shares – Basic
332.0

 
349.2

 
332.3

 
351.6

 
 
 
 
 
 
 
 
Net income applicable to common shareholders per common share – Diluted
$
2.44

 
$
1.91

 
$
6.17

 
$
4.63

 
 
 
 
 
 
 
 
Weighted average common shares – Diluted
336.9

 
354.6

 
337.2

 
357.2



7

Definitions of Non-GAAP Measures
We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Adjusted net income is net income applicable to common shareholders, excluding:
•
realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income,
•
pension and other postretirement remeasurement gains and losses, after-tax,
•
valuation changes on embedded derivatives not hedged, after-tax,
•
amortization of deferred policy acquisition costs (“DAC”) and deferred sales inducements (“DSI”), to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives not hedged, after-tax,
•
business combination expenses and the amortization or impairment of purchased intangibles, after-tax,
•
gain (loss) on disposition of operations, after-tax, and
•
adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years.
Net income applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income.
We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, valuation changes on embedded derivatives not hedged, business combination expenses and the amortization or impairment of purchased intangibles, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items. Realized capital gains and losses, pension and other postretirement remeasurement gains and losses, valuation changes on embedded derivatives not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Consistent with our intent to protect results or earn additional income, adjusted net income includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes. These instruments are used for economic hedges and to replicate fixed income securities, and by including them in adjusted net income, we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments. Business combination expenses are excluded because they are non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business.

8

The following tables reconcile net income applicable to common shareholders and adjusted net income. Taxes on adjustments to reconcile net income applicable to common shareholders and adjusted net income generally use a 21% effective tax rate and are reported net of income taxes as the reconciling adjustment.
($ in millions, except per share data)
Three months ended June 30,
 
Consolidated
 
Per diluted common share
 
2019
 
2018
 
2019
 
2018
Net income applicable to common shareholders
$
821

 
$
678

 
$
2.44

 
$
1.91

Realized capital gains and losses, after-tax
(256
)
 
19

 
(0.76
)
 
0.05

Pension and other postretirement remeasurement gains and losses, after-tax

99

 
(6
)
 
0.29

 
(0.01
)
Valuation changes on embedded derivatives not hedged, after-tax
2

 
—

 
—

 
—

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

 
3

 
—

 
—

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

 
(1
)
 
—

 
—

Business combination expenses and the amortization of purchased intangibles, after-tax
26

 
18

 
0.08

 
0.05

Impairment of purchased intangibles, after-tax
43

 
—

 
0.13

 
—

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

 
—

Adjusted net income*
$
735

 
$
710

 
$
2.18

 
$
2.00

 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
Consolidated
 
Per diluted common share
 
2019
 
2018
 
2019
 
2018
Net income applicable to common shareholders
$
2,082

 
$
1,655

 
$
6.17

 
$
4.63

Realized capital gains and losses, after-tax
(780
)
 
125

 
(2.31
)
 
0.35

Pension and other postretirement remeasurement gains and losses, after-tax
110

 
5

 
0.33

 
0.02

Valuation changes on embedded derivatives not hedged, after-tax
5

 
(4
)
 
0.01

 
(0.01
)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax
3

 
5

 
0.01

 
0.01

Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax
(1
)
 
(1
)
 
—

 
—

Business combination expenses and the amortization of purchased intangibles, after-tax
51

 
35

 
0.15

 
0.10

Impairment of purchased intangibles, after-tax
43

 
—

 
0.13

 
—

Gain on disposition of operations, after-tax
(2
)
 
(2
)
 
(0.01
)
 
(0.01
)
Adjusted net income*
$
1,511

 
$
1,818

 
$
4.48

 
$
5.09


9

Adjusted net income return on common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on common shareholders’ equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed above. We use average common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily attributable to the company’s earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income applicable to common shareholders and return on common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on common shareholders’ equity from return on common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on common shareholders’ equity and return on common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Adjusted net income return on common shareholders’ equity should not be considered a substitute for return on common shareholders’ equity and does not reflect the overall profitability of our business.
The following tables reconcile return on common shareholders’ equity and adjusted net income return on common shareholders’ equity.
($ in millions)
For the twelve months ended June 30,
 
2019
 
2018
Return on common shareholders’ equity
 
 
 
Numerator:
 
 
 
Net income applicable to common shareholders
$
2,439

 
$
3,759

Denominator:
 
 
 
Beginning common shareholders’ equity (1)
$
20,819

 
$
19,806

Ending common shareholders’ equity (1)
22,546

 
20,819

Average common shareholders’ equity
$
21,683

 
$
20,313

Return on common shareholders’ equity
11.2
%
 
18.5
%

($ in millions)
For the twelve months ended June 30,
 
2019
 
2018
Adjusted net income return on common shareholders’ equity
 
 
 
Numerator:
 
 
 
Adjusted net income *
$
2,822

 
$
3,322

 
 
 
 
Denominator:
 
 
 
Beginning common shareholders’ equity (1)
$
20,819

 
$
19,806

Less: Unrealized net capital gains and losses
54

 
1,526

Adjusted beginning common shareholders’ equity
20,765

 
18,280

 
 
 
 
Ending common shareholders’ equity (1)
22,546

 
20,819

Less: Unrealized net capital gains and losses
1,654

 
54

Adjusted ending common shareholders’ equity
20,892

 
20,765

Average adjusted common shareholders’ equity
$
20,829

 
$
19,523

Adjusted net income return on common shareholders’ equity *
13.5
%
 
17.0
%
_____________
(1) Excludes equity related to preferred stock of $1,930 million as of June 30, 2019, $2,303 million as of June 30, 2018 and $1,746 million as of June 30, 2017.




10

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization 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 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 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 of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio.
Property-Liability
Three months ended June 30,
 
Six months ended June 30,
 
2019
 
2018
 
2019
 
2018
Combined ratio
95.8

 
94.4

 
93.8

 
91.0

Effect of catastrophe losses
(12.3
)
 
(11.1
)
 
(10.2
)
 
(7.8
)
Effect of prior year non-catastrophe reserve reestimates
0.9

 
1.7

 
0.7

 
1.1

Underlying combined ratio*
84.4

 
85.0

 
84.3

 
84.3

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
—

 
0.5

 
0.3

 
0.2

Allstate brand - Total
Three months ended June 30,
 
Six months ended June 30,
 
2019
 
2018
 
2019
 
2018
Combined ratio
95.4

 
93.8

 
93.2

 
90.1

Effect of catastrophe losses
(13.0
)
 
(11.2
)
 
(10.7
)
 
(7.9
)
Effect of prior year non-catastrophe reserve reestimates
1.0

 
1.7

 
0.8

 
1.3

Underlying combined ratio*
83.4

 
84.3

 
83.3

 
83.5

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
—

 
0.5

 
0.3

 
0.3

Allstate brand - Auto Insurance
Three months ended June 30,
 
Six months ended June 30,
 
2019
 
2018
 
2019
 
2018
Combined ratio
92.8

 
92.5

 
91.6

 
90.2

Effect of catastrophe losses
(3.3
)
 
(3.1
)
 
(2.3
)
 
(1.5
)
Effect of prior year non-catastrophe reserve reestimates
1.6

 
2.9

 
1.4

 
2.2

Underlying combined ratio*
91.1

 
92.3

 
90.7

 
90.9

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

 
(0.3
)
Allstate brand - Homeowners Insurance
Three months ended June 30,
 
Six months ended June 30,
 
2019
 
2018
 
2019
 
2018
Combined ratio
104.3

 
97.9

 
98.3

 
89.2

Effect of catastrophe losses
(42.6
)
 
(36.0
)
 
(35.5
)
 
(26.7
)
Effect of prior year non-catastrophe reserve reestimates
0.4

 
1.0

 
0.1

 
0.5

Underlying combined ratio*
62.1

 
62.9

 
62.9

 
63.0

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
0.3

 
2.4

 
1.3

 
2.0

Esurance brand - Total
Three months ended June 30,
 
Six months ended June 30,
 
2019
 
2018
 
2019
 
2018
Combined ratio
100.6

 
101.9

 
100.0

 
100.7

Effect of catastrophe losses
(4.8
)
 
(6.2
)
 
(3.0
)
 
(3.6
)
Effect of prior year non-catastrophe reserve reestimates
0.4

 
0.2

 
(0.1
)
 
0.1

Effect of amortization of purchased intangibles
—

 
—

 
(0.1
)
 
(0.1
)
Underlying combined ratio*
96.2

 
95.9

 
96.8

 
97.1

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
0.4

 
0.2

 
0.2

 
0.1


11

Encompass brand - Total
Three months ended June 30,
 
Six months ended June 30,
 
2019
 
2018
 
2019
 
2018
Combined ratio
97.2

 
98.0

 
99.0

 
97.9

Effect of catastrophe losses
(10.2
)
 
(15.6
)
 
(11.0
)
 
(13.5
)
Effect of prior year non-catastrophe reserve reestimates
2.8

 
2.8

 
1.2

 
1.8

Underlying combined ratio*
89.8

 
85.2

 
89.2

 
86.2

 
 
 
 
 
 
 
 
Effect of prior year catastrophe reserve reestimates
1.6

 
0.8

 
1.6

 
2.0



# # # # #

12
allcorp63019investorsupp
The Allstate Corporation Investor Supplement Second Quarter 2019 The consolidated financial statements and financial exhibits includedherein are unaudited. These 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 page "Definitions of Non-GAAP Measures" and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.

 
The Allstate Corporation Investor Supplement - Second Quarter 2019 Table of Contents Consolidated Operations Allstate Life Condensed Consolidated Statements of Operations 1 Segment Results and Other Statistics 26 Contribution to Income 2 Return on Equity 27 Segment Results 3,4 Condensed Consolidated Statements of Financial Position 5 Allstate Benefits Book Value per Common Share 6 Segment Results and Other Statistics 28 Return on Common Shareholders' Equity 7 Return on Equity 29 Debt to Capital 8 Policies in Force 9 Allstate Annuities Premiums Written for Allstate Protection and Service Businesses 10 Segment Results and Other Statistics 30 Catastrophe Losses 11 Return on Equity 31 Property-Liability Corporate and Other Results 12 Corporate and Other Segment Results 32 Prior Year Reserve Reestimates 13 Catastrophe Losses included in Prior Year Reserve Reestimates 14 Investments Allstate Protection Investment Position 33 Impact of Net Rate Changes Approved on Premiums Written 15 Net Investment Income, Yields and Realized Capital Gains (Losses) (Pre-tax) 34 Allstate Brand Profitability Measures 16 Net Investment Income, Yields and Realized Capital Gains (Losses) (Pre-tax) by Segment 35,36 Allstate Brand Statistics 17 Investment Position and Results by Strategy by Segment 37,38 Esurance Brand Profitability Measures and Statistics 18 Performance-Based Investments 39 Encompass Brand Profitability Measures and Statistics 19 Auto Profitability Measures by Brand 20 Definitions of Non-GAAP Measures 40,41 Homeowners Profitability Measures by Brand 21 Commercial Lines Profitability Measures 22 Discontinued Lines and Coverages Reserves 23 Service Businesses Segment Results 24 SquareTrade Results 25

 
The Allstate Corporation Condensed Consolidated Statements of Operations ($ in millions, except per share data) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Revenues Property and casualty insurance premiums (1) $ 8,986 $ 8,802 $ 8,707 $ 8,595 $ 8,460 $ 8,286 $ 17,788 $ 16,746 Life premiums and contract charges (2) 621 628 625 612 612 616 1,249 1,228 Other revenue (3) 271 250 257 238 228 216 521 444 Net investment income 942 648 786 844 824 786 1,590 1,610 Realized capital gains and losses: Total other-than-temporary impairment ("OTTI") losses (12) (16) (5) (4) (4) - (28) (4) OTTI losses reclassified (from) to other comprehensive income (3) 2 1 (1) - (1) (1) (1) Net OTTI losses recognized in earnings (15) (14) (4) (5) (4) (1) (29) (5) Sales and valuation changes on equity investments and derivatives 339 676 (890) 181 (21) (133) 1,015 (154) Total realized capital gains and losses 324 662 (894) 176 (25) (134) 986 (159) Total revenues 11,144 10,990 9,481 10,465 10,099 9,770 22,134 19,869 Costs and expenses Property and casualty insurance claims and claims expense 6,356 5,820 6,067 5,805 5,777 5,129 12,176 10,906 Life contract benefits 511 497 488 498 483 504 1,008 987 Interest credited to contractholder funds 156 162 165 163 165 161 318 326 Amortization of deferred policy acquisition costs 1,362 1,364 1,336 1,317 1,296 1,273 2,726 2,569 Operating costs and expenses 1,380 1,380 1,508 1,425 1,358 1,303 2,760 2,661 Pension and other postretirement remeasurement gains and losses 125 15 500 (39) (7) 14 140 7 Restructuring and related charges 9 18 12 13 23 19 27 42 Amortization of purchased intangibles 32 32 36 24 23 22 64 45 Impairment of purchased intangibles 55 - - - - - 55 - Interest expense 82 83 81 82 86 83 165 169 Total costs and expenses 10,068 9,371 10,193 9,288 9,204 8,508 19,439 17,712 Gain on disposition of operations 2 1 2 1 2 1 3 3 Income (Loss) from operations before income tax expense 1,078 1,620 (710) 1,178 897 1,263 2,698 2,160 Income tax expense (benefit) 227 328 (168) (5) 199 (5) 180 257 555 437 Net income (loss) 851 1,292 (542) 979 717 1,006 2,143 1,723 Preferred stock dividends 30 31 43 37 39 29 61 68 Net income (loss) applicable to common shareholders $ 821 $ 1,261 $ (585) $ 942 $ 678 $ 977 $ 2,082 $ 1,655 Earnings per common share (4) Net income (loss) applicable to common shareholders per common share - Basic $ 2.47 $ 3.79 $ (1.71) $ 2.72 $ 1.94 $ 2.76 $ 6.27 $ 4.71 Weighted average common shares - Basic 332.0 332.6 341.9 346.0 349.2 354.1 332.3 351.6 Net income (loss) applicable to common shareholders per common share - Diluted $ 2.44 $ 3.74 $ (1.71) (6) $ 2.68 $ 1.91 $ 2.71 $ 6.17 $ 4.63 Weighted average common shares - Diluted 336.9 337.5 347.1 351.7 354.6 359.9 337.2 357.2 Cash dividends declared per common share $ 0.50 $ 0.50 $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 1.00 $ 0.92 (1) Property and casualty insurance premiums are reported in the Property-Liability and Service Businesses results and include auto, homeowners and other personal lines insurance products, as well as consumer product protection plans, roadside assistance, and finance and insurance products. (2) Life premiums and contract charges are reported in the Allstate Life, Allstate Benefits and Allstate Annuities results and include life insurance, voluntary accident and health insurance, and annuity products. (3) Other revenue primarily represents fees collected from policyholders relating to premium installment payments, commissions on sales of non-proprietary products, fee-based services and other revenue transactions. (4) In accordance with GAAP, the quarter and year-to-date per share amounts are calculated discretely. Therefore, the sum of each quarter may not equal the year-to-date amount. (5) Includes a $2 million Tax Legislation expense for the quarter ended December 31, 2018 and a $31 million benefit for the quarter ended September 30, 2018. (6) Calculation uses weighted average shares of 341.9 million, which excludes weighted average diluted shares of 5.2 million due to a net loss reported for the three months ended December 31, 2018. The Allstate Corporation 2Q19 Supplement 1

 
The Allstate Corporation Contribution to Income ($ in millions, except per share data) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Contribution to income Net income (loss) applicable to common shareholders $ 821 $ 1,261 $ (585) $ 942 $ 678 $ 977 $ 2,082 $ 1,655 Realized capital gains and losses, after-tax (256) (524) 704 (141) 19 106 (780) 125 Pension and other postretirement remeasurement gains and losses, after-tax 99 11 395 (30) (6) 11 110 5 Valuation changes on embedded derivatives not hedged, after-tax 2 3 2 (1) - (4) 5 (4) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax 1 2 1 1 3 2 3 5 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - (1) (1) - (1) - (1) (1) Business combination expenses and the amortization of purchased intangibles, after-tax 26 25 35 20 18 17 51 35 Impairment of purchased intangibles, after-tax 43 - - - - - 43 - Gain on disposition of operations, after-tax (1) (1) (1) (1) (1) (1) (2) (2) Tax Legislation expense (benefit) - - 2 (31) - - - - Adjusted net income * $ 735 $ 776 $ 552 $ 759 $ 710 $ 1,108 $ 1,511 $ 1,818 Income per common share - Diluted Net income (loss) applicable to common shareholders $ 2.44 $ 3.74 $ (1.71) (1) $ 2.68 $ 1.91 $ 2.71 $ 6.17 $ 4.63 Realized capital gains and losses, after-tax (0.76) (1.55) 2.03 (0.40) 0.05 0.29 (2.31) 0.35 Pension and other postretirement remeasurement gains and losses, after-tax 0.29 0.03 1.15 (0.08) (0.01) 0.03 0.33 0.02 Valuation changes on embedded derivatives not hedged, after-tax - 0.01 0.01 - - (0.01) 0.01 (0.01) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - - - - 0.01 0.01 0.01 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - - - - - - - Business combination expenses and the amortization of purchased intangibles, after-tax 0.08 0.07 0.10 0.05 0.05 0.05 0.15 0.10 Impairment of purchased intangibles, after-tax 0.13 - - - - - 0.13 - Gain on disposition of operations, after-tax - - - - - - (0.01) (0.01) Tax Legislation expense (benefit) - - 0.01 (0.09) - - - - Adjusted net income * $ 2.18 $ 2.30 $ 1.59 $ 2.16 $ 2.00 $ 3.08 $ 4.48 $ 5.09 Weighted average common shares - Diluted 336.9 337.5 347.1 351.7 354.6 359.9 337.2 357.2 (1) Calculation uses weighted average shares of 341.9 million, which excludes weighted average diluted shares of 5.2 million due to a net loss reported for the three months ended December 31, 2018. The Allstate Corporation 2Q19 Supplement 2

 
The Allstate Corporation Consolidating Segment Results Allstate Discontinued Property- Service Allstate Allstate Allstate Corporate Intersegment ($ in millions) Protection Lines Liability Businesses Life Benefits Annuities and Other Eliminations Consolidated Three months ended June 30, 2019 Premiums and contract charges $ 8,681 $ - $ 8,681 $ 305 $ 333 $ 284 $ 4 $ - $ - $ 9,607 Intersegment insurance premiums and service fees - - - 33 - - - - (33) - Other revenue 190 - 190 48 33 - - - - 271 Claims and claims expense (6,269) (3) (6,272) (86) - - - - 2 (6,356) Contract benefits and interest credited to contractholder funds - - - - (286) (151) (230) - - (667) Amortization of deferred policy acquisition costs (1,163) - (1,163) (134) (29) (35) (1) - - (1,362) Operating costs and expenses (1,059) - (1,059) (158) (91) (71) (8) (24) 31 (1,380) Pension and other postretirement remeasurement gains and losses - - - - - - - (125) - (125) Restructuring and related charges (9) - (9) 1 (1) - - - - (9) Amortization of purchased intangibles (1) - (1) (31) - - - - - (32) Impairment of purchased intangibles - - - (55) - - - - - (55) Interest expense - - - - - - - (82) - (82) Underwriting income (loss) $ 370 $ (3) 367 Net investment income 471 10 125 21 296 19 - 942 Realized capital gains and losses 256 9 1 2 48 8 - 324 Gain on disposition of operations - - - - 2 - - 2 Income tax (expense) benefit (231) 12 (18) (11) (23) 44 - (227) Preferred stock dividends - - - - - (30) - (30) Net income (loss) applicable to common shareholders $ 863 $ (46) $ 67 $ 39 $ 88 $ (190) $ - $ 821 Realized capital gains and losses, after-tax (204) (6) - (2) (37) (7) - (256) Pension and other postretirement remeasurement gains and losses, after-tax - - - - - 99 99 Valuation changes on embedded derivatives not hedged, after-tax - - - - 2 - - 2 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - 1 - - - - 1 Business combination expenses and the amortization of purchased intangibles, after-tax 1 25 - - - - - 26 Impairment of purchased intangibles, after-tax - 43 - - - - - 43 Gain on disposition of operations, after-tax - - - - (1) - - (1) Adjusted net income (loss) * $ 660 $ 16 (1) $ 68 (1) $ 37 (1) $ 52 (1) $ (98) (1) $ - $ 735 Three months ended June 30, 2018 Premiums and contract charges $ 8,189 $ - $ 8,189 $ 271 $ 326 $ 283 $ 3 $ - $ - $ 9,072 Intersegment insurance premiums and service fees - - - 29 - - - - (29) - Other revenue 184 - 184 16 28 - - - - 228 Claims and claims expense (5,687) (2) (5,689) (89) - - - - 1 (5,777) Contract benefits and interest credited to contractholder funds - - - - (266) (152) (230) - - (648) Amortization of deferred policy acquisition costs (1,110) - (1,110) (113) (35) (36) (2) - - (1,296) Operating costs and expenses (1,094) (1) (1,095) (116) (86) (69) (9) (11) 28 (1,358) Pension and other postretirement remeasurement gains and losses - - - - - - - 7 - 7 Restructuring and related charges (21) - (21) - (2) - - - - (23) Amortization of purchased intangibles (3) - (3) (20) - - - - - (23) Interest expense - - - - - - - (86) - (86) Underwriting income (loss) $ 458 $ (3) 455 Net investment income 353 6 130 19 293 23 - 824 Realized capital gains and losses (15) (2) (3) - 6 (11) - (25) Gain on disposition of operations - - - - 2 - - 2 Income tax (expense) benefit (163) 3 (17) (9) (13) 19 - (180) Preferred stock dividends - - - - - (39) - (39) Net income (loss) applicable to common shareholders $ 630 $ (15) $ 75 $ 36 $ 50 $ (98) $ - $ 678 Realized capital gains and losses, after-tax 12 1 2 - (5) 9 - 19 Pension and other postretirement remeasurement gains and losses, after-tax - - - - - (6) - (6) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - 3 - - - - 3 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) - - - - - - (1) Business combination expenses and the amortization of purchased intangibles, after-tax 2 16 - - - - - 18 Gain on disposition of operations, after-tax - - - - (1) - - (1) Adjusted net income (loss) * $ 643 $ 2 (1) $ 80 (1) $ 36 (1) $ 44 (1) $ (95) (1) $ - $ 710 (1) Adjusted net income is the segment measure used for each business. The Allstate Corporation 2Q19 Supplement 3

 
The Allstate Corporation Consolidating Segment Results Allstate Discontinued Property- Service Allstate Allstate Allstate Corporate Intersegment ($ in millions) Protection Lines Liability Businesses Life Benefits Annuities and Other Eliminations Consolidated Six months ended June 30, 2019 Premiums and contract charges $ 17,188 $ - $ 17,188 $ 600 $ 670 $ 572 $ 7 $ - $ - $ 19,037 Intersegment insurance premiums and service fees - - - 66 - - - - (66) - Other revenue 366 - 366 95 60 - - - - 521 Claims and claims expense (11,997) (5) (12,002) (178) - - - - 4 (12,176) Contract benefits and interest credited to contractholder funds - - - - (572) (305) (449) - - (1,326) Amortization of deferred policy acquisition costs (2,327) - (2,327) (261) (57) (78) (3) - - (2,726) Operating costs and expenses (2,128) (1) (2,129) (309) (182) (142) (15) (45) 62 (2,760) Pension and other postretirement remeasurement gains and losses - - - - - - - (140) - (140) Restructuring and related charges (27) - (27) 1 (1) - - - - (27) Amortization of purchased intangibles (2) - (2) (62) - - - - - (64) Impairment of purchased intangibles - - (55) - - (55) Interest expense - - - - - - - (165) - (165) Underwriting income (loss) $ 1,073 $ (6) 1,067 Net investment income 762 19 252 40 486 31 - 1,590 Realized capital gains and losses 753 17 (4) 6 204 10 - 986 Gain on disposition of operations - - - - 3 - - 3 Income tax (expense) benefit (537) 15 (32) (20) (48) 67 - (555) Preferred stock dividends - - - - - (61) - (61) Net income (loss) applicable to common shareholders $ 2,045 $ (52) $ 134 $ 73 $ 185 $ (303) $ - $ 2,082 Realized capital gains and losses, after-tax (597) (13) 4 (5) (161) (8) - (780) Pension and other postretirement remeasurement gains and losses, after-tax - - - - - 110 - 110 Valuation changes on embedded derivatives not hedged, after-tax - - - - 5 - - 5 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - 3 - - - - 3 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) - - - - - - (1) Business combination expenses and the amortization of purchased intangibles, after-tax 2 49 - - - - - 51 Impairment of purchased intangibles, after-tax - 43 - - - - - 43 Gain on disposition of operations, after-tax - - - - (2) - - (2) Adjusted net income (loss) * $ 1,449 $ 27 (1) $ 141 (1) $ 68 (1) $ 27 (1) $ (201) (1) $ - $ 1,511 Six months ended June 30, 2018 Premiums and contract charges $ 16,208 $ - $ 16,208 $ 538 $ 653 $ 569 $ 6 $ - $ - $ 17,974 Intersegment insurance premiums and service fees - - - 58 - - - - (58) - Other revenue 358 - 358 32 54 - - - - 444 Claims and claims expense (10,722) (5) (10,727) (182) - - - - 3 (10,906) Contract benefits and interest credited to contractholder funds - - - - (541) (309) (463) - - (1,313) Amortization of deferred policy acquisition costs (2,198) - (2,198) (223) (68) (77) (3) - - (2,569) Operating costs and expenses (2,137) (1) (2,138) (233) (169) (139) (18) (19) 55 (2,661) Pension and other postretirement remeasurement gains and losses - - - - - - - (7) - (7) Restructuring and related charges (39) - (39) (1) (2) - - - - (42) Amortization of purchased intangibles (4) - (4) (41) - - - - - (45) Interest expense - - - - - - - (169) - (169) Underwriting income (loss) $ 1,466 $ (6) 1,460 Net investment income 690 11 252 38 583 36 - 1,610 Realized capital gains and losses (110) (6) (6) (2) (23) (12) - (159) Gain on disposition of operations - - - - 3 - - 3 Income tax (expense) benefit (420) 10 (31) (17) (18) 39 - (437) Preferred stock dividends - - - - - (68) - (68) Net income (loss) applicable to common shareholders $ 1,620 $ (37) $ 142 $ 63 $ 67 $ (200) $ - $ 1,655 Realized capital gains and losses, after-tax 87 4 4 2 18 10 - 125 Pension and other postretirement remeasurement gains and losses, after-tax - - - - - 5 - 5 Valuation changes on embedded derivatives not hedged, after-tax - - - - (4) - - (4) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax - - 5 - - - - 5 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) - - - - - - (1) Business combination expenses and the amortization of purchased intangibles, after-tax 3 32 - - - - - 35 Gain on disposition of operations, after-tax - - - - (2) - - (2) Adjusted net income (loss) * $ 1,709 $ (1) (1) $ 151 (1) $ 65 (1) $ 79 (1) $ (185) (1) $ - $ 1,818 (1) Adjusted net income is the segment measure used for each business. The Allstate Corporation 2Q19 Supplement 4

 
The Allstate Corporation Condensed Consolidated Statements of Financial Position ($ in millions) June 30, 2019 March 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Assets Investments Fixed income securities, at fair value (1) $ 58,484 $ 58,202 $ 57,170 $ 57,663 $ 56,891 Equity securities, at fair value (2) 7,906 5,802 5,036 6,965 6,888 Mortgage loans 4,687 4,681 4,670 4,592 4,535 Limited partnership interests 7,818 7,493 7,505 7,602 7,679 Short-term, at fair value 3,740 4,157 3,027 3,071 3,123 Other 3,856 3,786 3,852 4,075 4,125 Total investments 86,491 84,121 81,260 83,968 83,241 Cash 599 551 499 460 489 Premium installment receivables, net 6,380 6,201 6,154 6,196 5,953 Deferred policy acquisition costs 4,667 4,670 4,784 4,667 4,533 Reinsurance and indemnification recoverables, net 9,292 9,374 9,565 8,994 8,910 Accrued investment income 633 614 600 616 589 Property and equipment, net 1,058 1,047 1,045 1,032 1,040 Goodwill 2,547 2,547 2,530 2,189 2,189 Other assets 3,649 3,659 3,007 3,060 3,150 Separate Accounts 3,058 3,050 2,805 3,307 3,271 Total assets $ 118,374 $ 115,834 $ 112,249 $ 114,489 $ 113,365 Liabilities Reserve for property and casualty insurance claims and claims expense $ 28,105 $ 27,544 $ 27,423 $ 26,939 $ 26,623 Reserve for life-contingent contract benefits 12,337 12,200 12,208 12,214 12,213 Contractholder funds 17,964 18,161 18,371 18,650 18,888 Unearned premiums 14,752 14,323 14,510 14,408 13,824 Claim payments outstanding 915 891 1,007 904 894 Deferred income taxes 997 817 425 667 723 Other liabilities and accrued expenses 9,142 8,977 7,737 7,291 7,359 Long-term debt (3) 6,628 6,453 6,451 6,450 6,448 Separate Accounts 3,058 3,050 2,805 3,307 3,271 Total liabilities 93,898 92,416 90,937 90,830 90,243 Equity Preferred stock and additional capital paid-in (4) 1,930 1,930 1,930 2,303 2,303 Common stock (5) 9 9 9 9 9 Additional capital paid-in 3,477 3,291 3,310 3,441 3,391 Retained income 45,803 45,148 44,033 44,776 43,997 Deferred ESOP expense (3) (3) (3) (3) (3) Treasury stock, at cost (6) (28,500) (28,042) (28,085) (27,011) (26,818) Accumulated other comprehensive income: Unrealized net capital gains and losses 1,654 972 (2) (16) 54 Unrealized foreign currency translation adjustments (40) (44) (49) (23) (9) Unamortized pension and other postretirement prior service credit 146 157 169 183 198 Total accumulated other comprehensive income 1,760 1,085 118 144 243 Total shareholders' equity 24,476 23,418 21,312 23,659 23,122 Total liabilities and shareholders' equity $ 118,374 $ 115,834 $ 112,249 $ 114,489 $ 113,365 (1) Amortized cost was $56,008, $56,831, $57,134, $57,618 and $56,750 as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. (2) Cost was $6,673, $4,767, $4,489, $5,741 and $5,846 as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. (3) On May 16, 2019 we repaid $317 million of 7.450% Senior Notes, Series B, at maturity. On June 10, 2019, we issued $500 million of 3.850% Senior Notes due 2049. (4) Preferred shares outstanding were 79.8 thousand at June 30, 2019, March 31, 2019 and December 31, 2018 and 95.2 thousand at September 30, 2018 and June 30, 2018. (5) Common shares outstanding were 329,903,875; 333,056,875; 331,908,805; 344,950,779 and 346,600,485 as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. (6) Treasury shares outstanding were 570 million, 567 million, 568 million, 555 million and 553 million as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively. The Allstate Corporation 2Q19 Supplement 5

 
The Allstate Corporation Book Value per Common Share ($ in millions, except per share data) June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2018 2018 2018 2018 Book value per common share Numerator: Common shareholders' equity (1) $ 22,546 $ 21,488 $ 19,382 $ 21,356 $ 20,819 $ 20,970 Denominator: Common shares outstanding and dilutive potential common shares outstanding 335.1 337.9 336.7 350.9 351.9 357.7 Book value per common share $ 67.28 $ 63.59 $ 57.56 $ 60.86 $ 59.16 $ 58.62 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities Numerator: Common shareholders' equity $ 22,546 $ 21,488 $ 19,382 $ 21,356 $ 20,819 $ 20,970 Less: Unrealized net capital gains and losses on fixed income securities 1,658 975 - (15) 55 187 Adjusted common shareholders' equity $ 20,888 $ 20,513 $ 19,382 $ 21,371 $ 20,764 $ 20,783 Denominator: Common shares outstanding and dilutive potential common shares outstanding 335.1 337.9 336.7 350.9 351.9 357.7 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 62.33 $ 60.71 $ 57.56 $ 60.90 $ 59.01 $ 58.10 (1) Excludes equity related to preferred stock of $1,930 million at June 30, 2019, March 31, 2019 and December 31, 2018 and $2,303 million for all other periods presented. The Allstate Corporation 2Q19 Supplement 6

 
The Allstate Corporation Return on Common Shareholders' Equity ($ in millions) Twelve months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2018 2018 2018 2018 Return on Common Shareholders' Equity Numerator: Net income applicable to common shareholders (1)(2) $ 2,439 $ 2,296 $ 2,012 $ 3,891 $ 3,759 $ 3,630 Denominator: Beginning common shareholders' equity $ 20,819 $ 20,970 $ 20,805 $ 20,508 $ 19,806 $ 19,495 Ending common shareholders' equity (3) 22,546 21,488 19,382 21,356 20,819 20,970 Average common shareholders' equity (4) $ 21,683 $ 21,229 $ 20,094 $ 20,932 $ 20,313 $ 20,233 Return on common shareholders' equity 11.2 % 10.8 % 10.0 % 18.6 % 18.5 % 17.9 % Adjusted Net Income Return on Common Shareholders' Equity Numerator: Adjusted net income * (1) $ 2,822 $ 2,797 $ 3,129 $ 3,400 $ 3,322 $ 3,157 Denominator: Beginning common shareholders' equity $ 20,819 $ 20,970 $ 20,805 $ 20,508 $ 19,806 $ 19,495 Less: Unrealized net capital gains and losses 54 187 1,662 1,651 1,526 1,256 Adjusted beginning common shareholders' equity 20,765 20,783 19,143 18,857 18,280 18,239 Ending common shareholders' equity 22,546 21,488 19,382 21,356 20,819 20,970 Less: Unrealized net capital gains and losses 1,654 972 (2) (16) 54 187 Adjusted ending common shareholders' equity 20,892 20,516 19,384 21,372 20,765 20,783 Average adjusted common shareholders' equity (4) $ 20,829 $ 20,650 $ 19,264 $ 20,115 $ 19,523 $ 19,511 Adjusted net income return on common shareholders' equity * 13.5 % 13.5 % 16.2 % 16.9 % 17.0 % 16.2 % (1) Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period. (2) Includes a $29 million Tax Legislation benefit for the periods ended June 30, 2019, March 31, 2019 and December 31, 2018, a $540 million benefit for the period ended September 30, 2018, and a $509 million benefit for all other periods presented. (3) Excludes equity related to preferred stock of $1,930 million at June 30, 2019, March 31, 2019 and December 31, 2018 and $2,303 million for all other periods presented. (4) Average common shareholders' equity and average adjusted common shareholders' equity are determined using a two-point average, with the beginning and ending common shareholders' equity and adjusted common shareholders' equity, respectively, for the twelve-month period as data points. The Allstate Corporation 2Q19 Supplement 7

 
The Allstate Corporation Debt to Capital June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, ($ in millions) 2019 2019 2018 2018 2018 2018 Debt Short-term debt $ - $ - $ - $ - $ - $ - Long-term debt 6,628 6,453 6,451 6,450 6,448 6,847 Total debt $ 6,628 $ 6,453 $ 6,451 $ 6,450 $ 6,448 $ 6,847 Capital resources Debt $ 6,628 $ 6,453 $ 6,451 $ 6,450 $ 6,448 $ 6,847 Shareholders' equity Preferred stock and additional capital paid-in 1,930 1,930 1,930 2,303 2,303 2,303 Common stock 9 9 9 9 9 9 Additional capital paid-in 3,477 3,291 3,310 3,441 3,391 3,367 Retained income 45,803 45,148 44,033 44,776 43,997 43,479 Deferred ESOP expense (3) (3) (3) (3) (3) (3) Treasury stock (28,500) (28,042) (28,085) (27,011) (26,818) (26,280) Unrealized net capital gains and losses 1,654 972 (2) (16) 54 187 Unrealized foreign currency translation adjustments (40) (44) (49) (23) (9) (3) Unamortized pension and other postretirement prior service credit 146 157 169 183 198 214 Total shareholders' equity 24,476 23,418 21,312 23,659 23,122 23,273 Total capital resources $ 31,104 $ 29,871 $ 27,763 $ 30,109 $ 29,570 $ 30,120 Ratio of debt to shareholders' equity 27.1 % 27.6 % 30.3 % 27.3 % 27.9 % 29.4 % Ratio of debt to capital resources 21.3 % 21.6 % 23.2 % 21.4 % 21.8 % 22.7 % The Allstate Corporation 2Q19 Supplement 8

 
The Allstate Corporation Policies in Force and Other Statistics June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2018 2018 2018 2018 Policies in Force statistics (in thousands) (1) Allstate Protection Allstate brand Auto 20,301 20,145 20,104 19,912 19,810 19,617 Homeowners 6,221 6,198 6,186 6,145 6,121 6,093 Landlord 670 676 681 683 688 692 Renter 1,668 1,655 1,642 1,626 1,612 1,599 Condominium 670 668 668 665 664 663 Other 1,319 1,307 1,304 1,297 1,287 1,276 Other personal lines 4,327 4,306 4,295 4,271 4,251 4,230 Commercial lines 229 230 231 231 234 238 Total 31,078 30,879 30,816 30,559 30,416 30,178 Esurance brand Auto 1,548 1,548 1,488 1,463 1,432 1,399 Homeowners 101 98 95 92 88 84 Other personal lines 48 48 46 46 46 45 Total 1,697 1,694 1,629 1,601 1,566 1,528 Encompass brand Auto 497 499 502 504 507 517 Homeowners 236 237 239 240 243 248 Other personal lines 77 78 78 80 81 83 Total 810 814 819 824 831 848 Allstate Protection Policies in Force 33,585 33,387 33,264 32,984 32,813 32,554 Service Businesses SquareTrade 83,968 77,866 68,588 52,151 44,459 41,806 InfoArmor 1,260 1,211 1,040 - - - Allstate Roadside Services 635 649 663 671 681 692 Allstate Dealer Services 3,873 3,863 3,896 3,919 3,959 4,026 Total 89,736 83,589 74,187 56,741 49,099 46,524 Allstate Life 2,009 2,012 2,022 2,018 2,019 2,018 Allstate Benefits 4,296 4,322 4,208 4,241 4,283 4,260 Allstate Annuities 201 206 211 215 220 225 Total Policies in Force 129,827 123,516 113,892 96,199 88,434 85,581 Agency Data (2) Total Allstate agencies (3) 12,700 12,700 12,700 12,400 12,300 12,300 Licensed sales professionals (4) 26,700 26,800 26,900 25,600 25,200 24,700 Allstate independent agencies (5) 3,200 3,000 (6) 2,700 2,600 2,600 2,500 (1) Policy counts are based on items rather than customers. • A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. • Commercial lines PIF for the agreement with a transportation network company reflects corporate contracts as opposed to individual driver counts. • Non-proprietary products offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included. • Allstate Roadside Services reflects memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner. • Allstate Dealer Services reflects service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators ("TPAs") as the customer relationship is managed by the TPAs. • SquareTrade represents active consumer product protection plans. • InfoArmor reflects individual customer counts for identity protection products. • Allstate Life insurance policies and Allstate Annuities in force reflect the number of contracts in force excluding sold blocks of business that remain on the balance sheet due to the dispositions of the business being effected through reinsurance arrangements. • Allstate Benefits reflects certificate counts as opposed to group counts. (2) Rounded to the nearest hundred. (3) Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and employee producers in Canada. (4) Represents employees of Allstate agencies who are licensed to sell Allstate products. (5) Includes 840 and 919 engaged Allstate independent agencies (“AIAs”) as of June 30, 2019 and December 31, 2018, respectively. Engaged AIAs, as currently determined, include those that achieve a minimum number of new policies written. (6) Beginning March 31, 2019, includes separate agency counts for agencies operating out of multiple locations, which increased the total agencies by approximately 200. The Allstate Corporation 2Q19 Supplement 9

 
The Allstate Corporation Premiums Written for Allstate Protection and Service Businesses . ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Allstate Protection Allstate brand (1) Auto $ 5,472 $ 5,395 $ 5,272 $ 5,357 $ 5,211 $ 5,151 $ 10,867 $ 10,362 Homeowners 2,076 1,565 1,777 2,008 1,949 1,465 3,641 3,414 Landlord 134 124 133 139 131 121 258 252 Renter 78 69 70 86 77 69 147 146 Condominium 75 62 68 73 72 59 137 131 Other 191 144 149 174 195 126 335 321 Other personal lines 478 399 420 472 475 375 877 850 Commercial lines 236 185 177 173 172 137 421 309 Total 8,262 7,544 7,646 8,010 7,807 7,128 15,806 14,935 Esurance brand Auto 469 532 452 487 430 470 1,001 900 Homeowners 32 25 23 30 27 21 57 48 Other personal lines 2 2 2 2 2 2 4 4 Total 503 559 477 519 459 493 1,062 952 Encompass brand Auto 146 120 130 143 146 118 266 264 Homeowners 111 86 98 106 108 86 197 194 Other personal lines 21 18 19 22 21 19 39 40 Total 278 224 247 271 275 223 502 498 Total Allstate Protection Auto 6,087 6,047 5,854 5,987 5,787 5,739 12,134 11,526 Homeowners 2,219 1,676 1,898 2,144 2,084 1,572 3,895 3,656 Other personal lines 501 419 441 496 498 396 920 894 Commercial lines 236 185 177 173 172 137 421 309 Total 9,043 8,327 8,370 8,800 8,541 7,844 17,370 16,385 Discontinued Lines and Coverages - - - - - - - - Total Property-Liability $ 9,043 $ 8,327 $ 8,370 $ 8,800 $ 8,541 $ 7,844 $ 17,370 $ 16,385 Service Businesses (2) SquareTrade $ 167 $ 206 $ 323 $ 194 $ 126 $ 130 $ 373 $ 256 Allstate Dealer Services 120 99 105 99 103 92 219 195 Allstate Roadside Services 63 63 61 65 68 65 126 133 Total $ 350 $ 368 $ 489 $ 358 $ 297 $ 287 $ 718 $ 584 Total premiums written $ 9,393 $ 8,695 $ 8,859 $ 9,158 $ 8,838 $ 8,131 $ 18,088 $ 16,969 Non-Proprietary Premiums Ivantage (3) $ 1,840 $ 1,806 $ 1,780 $ 1,758 $ 1,719 $ 1,679 $ 1,840 $ 1,719 Answer Financial (4) 150 145 140 156 156 148 295 304 (1) Canada premiums included in Allstate brand Auto $ 287 $ 205 $ 220 $ 244 $ 245 $ 186 $ 492 $ 431 Homeowners 87 58 68 77 77 50 145 127 Other personal lines 28 20 23 25 29 14 48 43 Total $ 402 $ 283 $ 311 $ 346 $ 351 $ 250 $ 685 $ 601 (2) There are no premiums written for Arity or InfoArmor, which are part of the Service Businesses segment. Revenues for Arity and InfoArmor are primarily reported as intersegment service fees and other revenue, respectively. (3) Represents non-proprietary premiums under management as of the end of the period related to personal and commercial line products offered by Ivantage when an Allstate product is not available. Fees for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 were $45.2 million, $37.3 million, $39.3 million, $45.2 million, $43.5 million and $37.2 million, respectively. (4) Represents non-proprietary premiums written for the period. Commissions earned for the three and six months ended June 30, 2019 were $17.5 million and $37.7 million, respectively. The Allstate Corporation 2Q19 Supplement 10

 
The Allstate Corporation Catastrophe Losses ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Allstate Protection Allstate brand Auto $ 179 $ 68 $ 53 $ 113 $ 160 $ (1) $ 247 $ 159 Homeowners 781 (2) 511 (2) 798 (2) 418 627 300 1,292 927 Other personal lines 57 64 87 51 46 27 121 73 Commercial lines 4 1 9 6 4 3 5 7 Total 1,021 644 947 588 837 329 1,665 1,166 Esurance brand Auto 10 3 2 8 15 2 13 17 Homeowners 15 3 4 6 14 1 18 15 Total 25 6 6 14 29 3 31 32 Encompass brand Auto 3 3 (1) 2 4 1 6 5 Homeowners 22 25 9 20 34 26 47 60 Other personal lines 1 2 2 1 2 2 3 4 Total 26 30 10 23 40 29 56 69 Allstate Protection Auto 192 74 54 123 179 2 266 181 Homeowners 818 539 811 444 675 327 1,357 1,002 Other personal lines 58 66 89 52 48 29 124 77 Commercial lines 4 1 9 6 4 3 5 7 Total 1,072 680 963 625 906 361 1,752 1,267 Discontinued Lines and Coverages - - - - - - - - Total Property-Liability $ 1,072 $ 680 $ 963 $ 625 $ 906 $ 361 $ 1,752 $ 1,267 Effect of Catastrophe Losses on Combined Ratio (1) Allstate Protection Auto 2.2 0.9 0.6 1.5 2.2 - 1.6 1.1 Homeowners 9.4 6.3 9.6 5.3 8.2 4.1 7.9 6.2 Other personal lines 0.7 0.8 1.1 0.6 0.6 0.4 0.7 0.5 Commercial lines - - 0.1 0.1 0.1 - - - Total 12.3 8.0 11.4 7.5 11.1 4.5 10.2 7.8 10-year average effect of catastrophe losses on combined ratio 14.0 6.8 6.1 6.9 14.0 6.8 8.5 8.4 (1) Calculated using the total premiums earned for Allstate Protection for the respective period. Discontinued Lines and Coverages does not have premiums earned. (2) Includes $5 million, $15 million and $60 million of reinstatement reinsurance premiums for the three months ended June 30, 2019, March 31, 2019 and December 31, 2018, respectively, related to the 2018 Camp Fire. The Allstate Corporation 2Q19 Supplement 11

 
The Allstate Corporation Property-Liability Results ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Premiums written $ 9,043 $ 8,327 $ 8,370 $ 8,800 $ 8,541 $ 7,844 $ 17,370 $ 16,385 (Increase) decrease in unearned premiums (384) 179 99 (505) (347) 209 (205) (138) Other 22 1 (47) 25 (5) (34) 23 (39) Premiums earned 8,681 8,507 8,422 8,320 8,189 8,019 17,188 16,208 Other revenue 190 176 188 192 184 174 366 358 Claims and claims expense (6,272) (5,730) (5,991) (5,717) (5,689) (5,038) (12,002) (10,727) Amortization of deferred policy acquisition costs (1,163) (1,164) (1,144) (1,133) (1,110) (1,088) (2,327) (2,198) Operating costs and expenses (1,060) (1,071) (1,180) (1,143) (1,098) (1,044) (2,131) (2,142) Restructuring and related charges (9) (18) (9) (12) (21) (18) (27) (39) Underwriting income (1) 367 700 286 507 455 1,005 1,067 1,460 Net investment income 471 291 364 410 353 337 762 690 Income tax expense on operations (179) (202) (119) (185) (166) (277) (381) (443) Realized capital gains and losses, after-tax 204 393 (516) 103 (12) (75) 597 (87) Tax Legislation expense - - (2) (3) - - - - Net income applicable to common shareholders $ 863 $ 1,182 $ 13 $ 832 $ 630 $ 990 $ 2,045 $ 1,620 Catastrophe losses $ 1,072 $ 680 $ 963 $ 625 $ 906 $ 361 $ 1,752 $ 1,267 Amortization of purchased intangibles $ 1 $ 1 $ 3 $ 4 $ 3 $ 1 $ 2 $ 4 Operating ratios Claims and claims expense ("loss") ratio 72.3 67.4 71.1 68.7 69.4 62.9 69.8 66.2 Expense ratio (2) 23.5 24.4 25.5 25.2 25.0 24.6 24.0 24.8 Combined ratio 95.8 91.8 96.6 93.9 94.4 87.5 93.8 91.0 Loss ratio 72.3 67.4 71.1 68.7 69.4 62.9 69.8 66.2 Less: effect of catastrophe losses 12.3 8.0 11.4 7.5 11.1 4.5 10.2 7.8 effect of prior year non-catastrophe reserve reestimates (0.9) (0.4) (1.1) 0.2 (1.7) (0.6) (0.7) (1.1) Underlying loss ratio * 60.9 59.8 60.8 61.0 60.0 59.0 60.3 59.5 Reconciliation of combined ratio to underlying combined ratio Combined ratio 95.8 91.8 96.6 93.9 94.4 87.5 93.8 91.0 Effect of catastrophe losses (12.3) (8.0) (11.4) (7.5) (11.1) (4.5) (10.2) (7.8) Effect of prior year non-catastrophe reserve reestimates 0.9 0.4 1.1 (0.2) 1.7 0.6 0.7 1.1 Underlying combined ratio * 84.4 84.2 86.3 86.2 85.0 83.6 84.3 84.3 Effect of restructuring and related charges on combined ratio 0.1 0.2 0.1 0.1 0.3 0.2 0.2 0.2 Effect of Discontinued Lines and Coverages on combined ratio 0.1 0.1 - 1.0 - 0.1 - - (1) Underwriting Income (Loss) Allstate brand $ 367 $ 702 $ 306 $ 587 $ 463 $ 1,001 $ 1,069 $ 1,464 Esurance brand (3) 3 (9) (10) (9) 3 - (6) Encompass brand 7 (2) (4) 11 5 6 5 11 Answer Financial (1) - (3) (1) (1) (2) (1) (3) Total underwriting income for Allstate Protection 370 703 290 587 458 1,008 1,073 1,466 Discontinued Lines and Coverages (3) (3) (4) (80) (3) (3) (6) (6) Total underwriting income for Property-Liability $ 367 $ 700 $ 286 $ 507 $ 455 $ 1,005 $ 1,067 $ 1,460 (2) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 2Q19 Supplement 12

 
The Allstate Corporation Property-Liability Prior Year Reserve Reestimates ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Prior Year Reserve Reestimates (1) Allstate Protection Allstate brand Auto $ (94) $ (58) $ (94) $ (97) $ (155) $ (101) $ (152) $ (256) Homeowners (1) 46 (35) (17) 24 27 45 51 Other personal lines (1) 10 12 8 (6) (6) 9 (12) Commercial lines 13 4 1 42 45 20 17 65 Total (83) 2 (116) (64) (92) (60) (81) (152) Esurance brand Auto (1) 4 2 - (1) 1 3 - Homeowners 1 (1) 1 1 1 (1) - - Other personal lines - - - (1) - - - - Total - 3 3 - - - 3 - Encompass brand Auto (9) - (7) (2) (1) - (9) (1) Homeowners 4 8 2 3 2 6 12 8 Other personal lines 2 (3) (4) (4) (6) - (1) (6) Total (3) 5 (9) (3) (5) 6 2 1 Discontinued Lines and Coverages 3 2 2 80 2 3 5 5 Total Property-Liability $ (83) $ 12 $ (120) $ 13 $ (95) $ (51) $ (71) $ (146) Effect of Prior Year Reserve Reestimates on Combined Ratio (1)(2) Allstate Protection Auto (1.2) (0.6) (1.1) (1.2) (1.9) (1.2) (0.9) (1.6) Homeowners - 0.6 (0.4) (0.1) 0.3 0.4 0.4 0.4 Other personal lines - 0.1 0.1 - (0.1) (0.1) - (0.1) Commercial lines 0.2 - - 0.5 0.5 0.2 0.1 0.4 Total (1.0) 0.1 (1.4) (0.8) (1.2) (0.7) (0.4) (0.9) Discontinued Lines and Coverages 0.1 0.1 - 1.0 - 0.1 - - Total Property-Liability (0.9) 0.2 (1.4) 0.2 (1.2) (0.6) (0.4) (0.9) Allstate Protection by brand Allstate brand (1.0) - (1.3) (0.8) (1.1) (0.8) (0.4) (0.9) Esurance brand - - - - - - - - Encompass brand - 0.1 (0.1) - (0.1) 0.1 - - Total (1.0) 0.1 (1.4) (0.8) (1.2) (0.7) (0.4) (0.9) (1) Favorable reserve reestimates are shown in parentheses. (2) Calculated using the total premiums earned for Property-Liability for the respective period. Discontinued Lines and Coverages does not have premiums earned. The Allstate Corporation 2Q19 Supplement 13

 
The Allstate Corporation Property-Liability Catastrophe Losses included in Prior Year Reserve Reestimates ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Allstate Protection (1) Allstate brand Auto $ (7) $ (1) $ (2) $ (4) $ (5) $ (27) $ (8) $ (32) Homeowners 6 (3) 42 (3) (19) 2 41 (4) 27 48 68 Other personal lines (3) 9 1 - - (3) 6 (3) Commercial lines 1 (1) - - 1 (1) - - Total (3) 49 (20) (2) 37 (4) 46 33 Esurance brand Auto 1 - - - - - 1 - Homeowners 1 - - 1 1 - 1 1 Total 2 - - 1 1 - 2 1 Encompass brand Auto - - - (1) - - - - Homeowners 4 4 - 3 2 7 8 9 Other personal lines - - - - - 1 - 1 Total 4 4 - 2 2 8 8 10 Total Allstate Protection Auto (6) (1) (2) (5) (5) (27) (7) (32) Homeowners 11 46 (19) 6 44 34 57 78 Other personal lines (3) 9 1 - - (2) 6 (2) Commercial lines 1 (1) - - 1 (1) - - Total 3 53 (20) 1 40 4 56 44 Discontinued Lines and Coverages - - - - - - - - Total Property-Liability $ 3 $ 53 $ (20) $ 1 $ 40 $ 4 $ 56 $ 44 Effect of Catastrophe Losses included in Prior Year Reserve Reestimates on Combined Ratio (1)(2) Allstate Protection Auto (0.1) - - (0.1) (0.1) (0.4) - (0.2) Homeowners 0.1 0.5 (0.3) 0.1 0.6 0.4 0.3 0.4 Other personal lines - 0.1 - - - - - - Commercial lines - - - - - - - - Total - 0.6 (0.3) - 0.5 - 0.3 0.2 Allstate Protection by brand Allstate brand - 0.6 (0.3) - 0.5 (0.1) 0.3 0.2 Esurance brand - - - - - - - - Encompass brand - - - - - 0.1 - - Total - 0.6 (0.3) - 0.5 - 0.3 0.2 (1) Favorable reserve reestimates are shown in parentheses. (2) Calculated using the total premiums earned for Property-Liability for the respective period. Discontinued Lines and Coverages does not have premiums earned or catastrophe losses. (3) Includes $5 million and $15 million of reinstatement reinsurance premiums incurred for the three months ended June 30, 2019 and March 31, 2019, respectively, related to the 2018 Camp Fire. (4) Includes $37 million for Texas Windstorm Insurance Association assessments related to Hurricane Harvey which occurred in third quarter 2017. The Allstate Corporation 2Q19 Supplement 14

 
The Allstate Corporation Allstate Protection Impact of Net Rate Changes Approved on Premiums Written Three months ended Three months ended Three months ended June 30, 2019 (1) March 31, 2019 December 31, 2018 Number of Location Number of Location Number of Location locations (5) Total brand (%) (6) specific (%) (7) locations Total brand (%) specific (%) locations Total brand (%) specific (%) Allstate brand Auto (2)(3) 20 0.8 3.4 19 0.6 3.4 25 0.3 3.2 Homeowners (4) 4 0.1 5.1 20 2.1 5.5 18 1.1 4.6 Esurance brand Auto 6 2.4 5.3 9 0.6 4.1 8 0.3 1.3 Homeowners 2 2.7 19.9 2 2.0 18.2 1 0.4 9.9 Encompass brand Auto 1 - 3.6 3 0.5 4.5 4 0.5 2.6 Homeowners 8 1.4 6.5 4 1.4 10.8 3 1.2 8.2 Three months ended Three months ended Three months ended September 30, 2018 June 30, 2018 March 31, 2018 Number of Location Number of Location Number of Location locations Total brand (%) specific (%) locations Total brand (%) specific (%) locations Total brand (%) specific (%) Allstate brand Auto 20 - 1.0 21 0.5 2.5 24 0.3 2.4 Homeowners 10 0.4 3.6 5 0.1 1.8 14 1.1 4.9 Esurance brand Auto 14 0.9 3.4 8 0.5 2.9 2 0.1 4.5 Homeowners - - - - - - 5 1.7 6.4 Encompass brand Auto 7 0.6 4.6 5 1.0 7.9 4 0.3 3.0 Homeowners 11 2.7 7.8 7 0.7 6.1 3 0.1 2.0 (1) Rate changes include changes approved based on our net cost of reinsurance. These rate changes do not reflect initial rates filed for insurance subsidiaries initially writing business. Based on historical premiums written in 50 states, the District of Columbia and Canadian provinces, rate changes approved for Allstate brand, Esurance brand and Encompass brand for the three month period ending June 30, 2019 are estimated to total $236 million. Rate changes do not include rating plan enhancements, including the introduction of discounts and surcharges that result in no change in the overall rate level in a location. (2) Impacts of Allstate brand auto effective rate changes as a percentage of total brand prior year-end premiums written were 0.9%, 0.6%, 0.2%, 0.4%, 0.1% and 1.2% for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. Rate changes are included in the effective calculations in the period the rate change is effective for renewal contracts. (3) Allstate brand auto rate changes were 1.7%, 1.4%, 1.1%, 2.0%, 2.4% and 2.6% for the trailing twelve months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. (4) Impacts of Allstate brand homeowners effective rate changes as a percentage of total brand prior year-end premiums written were 0.8%, 2.3%, 0.2%, 0.4%, 0.3%, and 1.0% for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. (5) Allstate brand operates in 50 states, the District of Columbia, and 5 Canadian provinces. Esurance brand operates in 43 states. In the second quarter of 2018, Esurance brand discontinued its operations in Canada. Encompass operates in 40 states and the District of Columbia. (6) Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of total brand prior year-end premiums written. (7) Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of its respective total prior year-end premiums written in those same locations. The Allstate Corporation 2Q19 Supplement 15

 
The Allstate Corporation Allstate Brand Profitability Measures ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 8,262 $ 7,544 $ 7,646 $ 8,010 $ 7,807 $ 7,128 $ 15,806 $ 14,935 Net premiums earned Auto $ 5,404 $ 5,321 $ 5,275 $ 5,210 $ 5,131 $ 5,046 $ 10,725 $ 10,177 Homeowners 1,832 1,811 1,787 1,769 1,742 1,727 3,643 3,469 Other personal lines 440 437 432 432 432 420 877 852 Commercial lines 226 183 178 176 165 136 409 301 Total $ 7,902 $ 7,752 $ 7,672 $ 7,587 $ 7,470 $ 7,329 $ 15,654 $ 14,799 Other revenue Auto $ 57 $ 57 $ 65 $ 56 $ 56 $ 54 $ 114 $ 110 Homeowners 11 11 12 11 11 11 22 22 Other personal lines 35 28 34 36 34 28 63 62 Commercial lines 2 1 1 2 1 2 3 3 Other business lines (1) 46 38 39 47 41 41 84 82 Total $ 151 $ 135 $ 151 $ 152 $ 143 $ 136 $ 286 $ 279 Incurred losses Auto $ 3,698 $ 3,485 $ 3,520 $ 3,495 $ 3,424 $ 3,189 $ 7,183 $ 6,613 Homeowners 1,508 1,254 1,445 1,125 1,308 995 2,762 2,303 Other personal lines 281 292 316 305 260 257 573 517 Commercial lines 196 139 141 184 166 107 335 273 Total $ 5,683 $ 5,170 $ 5,422 $ 5,109 $ 5,158 $ 4,548 $ 10,853 $ 9,706 Expenses Auto $ 1,376 $ 1,381 $ 1,419 $ 1,380 $ 1,378 $ 1,300 $ 2,757 $ 2,678 Homeowners 414 426 449 438 408 406 840 814 Other personal lines 146 143 161 157 145 140 289 285 Commercial lines 39 38 37 36 36 37 77 73 Other business lines (1) 28 27 29 32 25 33 55 58 Total $ 2,003 $ 2,015 $ 2,095 $ 2,043 $ 1,992 $ 1,916 $ 4,018 $ 3,908 Underwriting income (loss) Auto $ 387 $ 512 $ 401 $ 391 $ 385 $ 611 $ 899 $ 996 Homeowners (79) 142 (95) 217 37 337 63 374 Other personal lines 48 30 (11) 6 61 51 78 112 Commercial lines (7) 7 1 (42) (36) (6) - (42) Other business lines 18 11 10 15 16 8 29 24 Total $ 367 $ 702 $ 306 $ 587 $ 463 $ 1,001 $ 1,069 $ 1,464 Loss ratio 71.9 66.7 70.7 67.4 69.0 62.0 69.3 65.6 Expense ratio (2) 23.5 24.2 25.3 24.9 24.8 24.3 23.9 24.5 Combined ratio 95.4 90.9 96.0 92.3 93.8 86.3 93.2 90.1 Loss ratio 71.9 66.7 70.7 67.4 69.0 62.0 69.3 65.6 Less: effect of catastrophe losses 13.0 8.3 12.3 7.8 11.2 4.5 10.7 7.9 effect of prior year non-catastrophe reserve reestimates (1.0) (0.6) (1.2) (0.8) (1.7) (0.8) (0.8) (1.3) Underlying loss ratio * 59.9 59.0 59.6 60.4 59.5 58.3 59.4 59.0 Reconciliation of combined ratio to underlying combined ratio Combined ratio 95.4 90.9 96.0 92.3 93.8 86.3 93.2 90.1 Effect of catastrophe losses (13.0) (8.3) (12.3) (7.8) (11.2) (4.5) (10.7) (7.9) Effect of prior year non-catastrophe reserve reestimates 1.0 0.6 1.2 0.8 1.7 0.8 0.8 1.3 Underlying combined ratio * 83.4 83.2 84.9 85.3 84.3 82.6 83.3 83.5 Effect of prior year reserve reestimates on combined ratio (1.0) - (1.5) (0.8) (1.2) (0.8) (0.5) (1.0) Effect of advertising expenses on combined ratio 1.9 1.9 2.5 2.5 2.0 1.6 1.9 1.8 (1) Other business lines represent commissions earned and other costs and expenses for Ivantage. (2) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 2Q19 Supplement 16

 
The Allstate Corporation Allstate Brand Statistics (1) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 New Issued Applications (in thousands) (2) Auto 755 7 40 710 755 754 714 1,495 1,468 Homeowners 229 197 197 219 223 187 426 410 Average Premium - Gross Written ($) (3) Auto 581 578 578 572 566 564 579 565 Homeowners 1,295 1,267 1,243 1,238 1,226 1,212 1,283 1,220 Average Premium - Net Earned ($) (4) Auto 535 530 528 525 522 516 532 519 Homeowners 1,174 1,166 1,156 1,148 1,135 1,131 1,170 1,133 Annualized Average Premium ($) (5) Auto 1,065 1,057 1,050 1,047 1,036 1,029 1,057 1,027 Homeowners 1,178 1,169 1,156 1,152 1,138 1,134 1,171 1,133 Average Underlying Loss (Incurred Pure Premium) and Expense * ($) (6) Auto 970 953 978 963 956 920 958 934 Homeowners 732 745 712 751 716 716 737 714 Renewal Ratio (%) (7) Auto 88.8 88.8 88.5 88.7 88.5 88.3 88.8 88.4 Homeowners 88.2 88.4 88.5 88.3 87.7 87.5 88.3 87.6 Auto Property Damage (% change year-over-year) Gross claim frequency (8) (0.8) (1.6) (2.5) (2.7) (2.9) (2.5) (1.2) (2.7) Paid claim frequency (8) (1.5) (3.6) (0.6) 0.2 (3.0) (3.0) (2.5) (3.0) Paid claim severity (9) 8.8 6.1 7.4 7.7 3.7 4.7 7.4 4.2 Bodily Injury (% change year-over-year) Gross claim frequency (8) (2.1) (1.2) (2.5) (0.7) (2.7) (2.0) (1.6) (2.3) Homeowners Excluding Catastrophe Losses (% change year-over-year) Gross claim frequency (8) (2.8) (0.2) 8.7 7.0 7.1 (1.1) (1.5) 3.0 Paid claim frequency (8) (6.7) 1.1 9.0 8.5 5.9 (4.0) (3.1) 1.1 Paid claim severity (9) 11.7 0.5 (0.1) 3.4 5.0 14.4 6.2 9.3 (1) Statistics presented for Allstate brand exclude excess and surplus lines. (2) New Issued Applications: Item counts of automobiles or homeowners insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate Protection brand. Allstate brand includes automobiles added by existing customers when they exceed the number allowed (currently 10) on a policy. (3) Average Premium - Gross Written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners. (4) Average Premium - Net Earned: Earned premium divided by average policies in force for the period. Earned premium includes the impacts from mid-term premium adjustments and ceded reinsurance, but does not include impacts of premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners. (5) Annualized Average Premium is calculated by annualizing net earned premium reported in the quarter and year-to-date divided by policies in force at quarter end. (6) Average underlying loss (incurred pure premium) and expense is calculated as the underlying combined ratio multiplied by the annualized average premium. (7) Renewal ratio: Renewal policies issued during the period, based on contract effective dates, divided by the total policies issued 6 months prior for auto or 12 months prior for homeowners. (8) Paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. (9) Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period. The percent change in paid claim severity is calculated as the amount of increase or decrease in paid claim severity in the current period compared to the same period in the prior year; divided by the prior year paid claims severity. The Allstate Corporation 2Q19 Supplement 17

 
The Allstate Corporation Esurance Brand Profitability Measures and Statistics ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 503 $ 559 $ 477 $ 519 $ 459 $ 493 $ 1,062 $ 952 Net premiums earned Auto $ 496 $ 475 $ 466 $ 455 $ 439 $ 411 $ 971 $ 850 Homeowners 27 25 26 22 22 20 52 42 Other personal lines 2 2 2 2 2 2 4 4 Total $ 525 $ 502 $ 494 $ 479 $ 463 $ 433 $ 1,027 $ 896 Other revenue Auto $ 20 $ 20 $ 19 $ 21 $ 20 $ 20 $ 40 $ 40 Total $ 20 $ 20 $ 19 $ 21 $ 20 $ 20 $ 40 $ 40 Incurred losses Auto $ 387 $ 367 $ 374 $ 346 $ 334 $ 309 $ 754 $ 643 Homeowners 31 15 16 20 28 11 46 39 Other personal lines 1 2 2 - 2 1 3 3 Total $ 419 $ 384 $ 392 $ 366 $ 364 $ 321 $ 803 $ 685 Expenses Auto $ 121 $ 129 $ 123 $ 135 $ 120 $ 121 $ 250 $ 241 Homeowners 7 6 6 8 8 7 13 15 Other personal lines 1 - 1 1 - 1 1 1 Total $ 129 $ 135 $ 130 $ 144 $ 128 $ 129 $ 264 $ 257 Underwriting income (loss) Auto $ 8 $ (1) $ (12) $ (5) $ 5 $ 1 $ 7 $ 6 Homeowners (11) 4 4 (6) (14) 2 (7) (12) Other personal lines - - (1) 1 - - - - Total $ (3) $ 3 $ (9) $ (10) $ (9) $ 3 $ - $ (6) Loss ratio 79.8 76.5 79.3 76.4 78.6 74.1 78.2 76.5 Expense ratio (1) 20.8 22.9 22.5 25.7 23.3 25.2 21.8 24.2 Combined ratio 100.6 99.4 101.8 102.1 101.9 99.3 100.0 100.7 Loss ratio 79.8 76.5 79.3 76.4 78.6 74.1 78.2 76.5 Less: effect of catastrophe losses 4.8 1.2 1.2 2.9 6.2 0.7 3.0 3.6 effect of prior year non-catastrophe reserve reestimates (0.4) 0.6 0.6 (0.2) (0.2) - 0.1 (0.1) Underlying loss ratio * 75.4 74.7 77.5 73.7 72.6 73.4 75.1 73.0 Reconciliation of combined ratio to underlying combined ratio Combined ratio 100.6 99.4 101.8 102.1 101.9 99.3 100.0 100.7 Effect of catastrophe losses (4.8) (1.2) (1.2) (2.9) (6.2) (0.7) (3.0) (3.6) Effect of prior year non-catastrophe reserve reestimates 0.4 (0.6) (0.6) 0.2 0.2 - (0.1) 0.1 Effect of amortization of purchased intangibles - (0.2) (0.2) (0.2) - (0.2) (0.1) (0.1) Underlying combined ratio * 96.2 97.4 99.8 99.2 95.9 98.4 96.8 97.1 Effect of prior year reserve reestimates on combined ratio - 0.6 0.6 - - - 0.3 - Effect of advertising expenses on combined ratio 7.4 8.2 7.5 10.6 8.6 8.1 7.8 8.4 Policies in Force (in thousands) Auto 1,548 1,548 1,488 1,463 1,432 1,399 1,548 1,432 Homeowners 101 98 95 92 88 84 101 88 Other personal lines 48 48 46 46 46 45 48 46 1,697 1,694 1,629 1,601 1,566 1,528 1,697 1,566 New Issued Applications (in thousands) Auto 145 180 153 166 156 158 325 314 Homeowners 7 7 6 9 9 8 14 17 Average Premium - Gross Written ($) Auto (6-month policy) 611 625 608 603 602 605 619 604 Homeowners (12-month policy) 1,063 1,016 974 984 977 970 1,045 978 Renewal Ratio (%) Auto 84.0 83.9 82.8 82.9 84.3 83.5 84.0 83.9 Homeowners 85.5 84.8 84.4 85.9 86.2 84.4 85.2 85.4 (1) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 2Q19 Supplement 18

 
The Allstate Corporation Encompass Brand Profitability Measures and Statistics ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 278 $ 224 $ 247 $ 271 $ 275 $ 223 $ 502 $ 498 Net premiums earned Auto $ 135 $ 134 $ 135 $ 133 $ 135 $ 134 $ 269 $ 269 Homeowners 99 99 101 100 100 101 198 201 Other personal lines 20 20 20 21 21 22 40 43 Total $ 254 $ 253 $ 256 $ 254 $ 256 $ 257 $ 507 $ 513 Other revenue Auto $ - $ 1 $ 1 $ - $ 1 $ 1 $ 1 $ 2 Homeowners 1 - - 1 1 - 1 1 Total $ 1 $ 1 $ 1 $ 1 $ 2 $ 1 $ 2 $ 3 Incurred losses Auto $ 87 $ 91 $ 99 $ 83 $ 82 $ 85 $ 178 $ 167 Homeowners 66 72 58 70 75 65 138 140 Other personal lines 14 11 18 9 8 16 25 24 Total $ 167 $ 174 $ 175 $ 162 $ 165 $ 166 $ 341 $ 331 Expenses Auto $ 42 $ 45 $ 45 $ 42 $ 45 $ 45 $ 87 $ 90 Homeowners 32 31 33 34 34 34 63 68 Other personal lines 7 6 8 6 9 7 13 16 Total $ 81 $ 82 $ 86 $ 82 $ 88 $ 86 $ 163 $ 174 Underwriting income (loss) Auto $ 6 $ (1) $ (8) $ 8 $ 9 $ 5 $ 5 $ 14 Homeowners 2 (4) 10 (3) (8) 2 (2) (6) Other personal lines (1) 3 (6) 6 4 (1) 2 3 Total $ 7 $ (2) $ (4) $ 11 $ 5 $ 6 $ 5 $ 11 Loss ratio 65.7 68.8 68.4 63.8 64.4 64.6 67.3 64.5 Expense ratio (1) 31.5 32.0 33.2 31.9 33.6 33.1 31.7 33.4 Combined ratio 97.2 100.8 101.6 95.7 98.0 97.7 99.0 97.9 Loss ratio 65.7 68.8 68.4 63.8 64.4 64.6 67.3 64.5 Less: effect of catastrophe losses 10.2 11.9 3.9 9.1 15.6 11.3 11.0 13.5 effect of prior year non-catastrophe reserve reestimates (2.8) 0.4 (3.5) (2.0) (2.8) (0.8) (1.2) (1.8) Underlying loss ratio * 58.3 56.5 68.0 56.7 51.6 54.1 57.5 52.8 Reconciliation of combined ratio to underlying combined ratio Combined ratio 97.2 100.8 101.6 95.7 98.0 97.7 99.0 97.9 Effect of catastrophe losses (10.2) (11.9) (3.9) (9.1) (15.6) (11.3) (11.0) (13.5) Effect of prior year non-catastrophe reserve reestimates 2.8 (0.4) 3.5 2.0 2.8 0.8 1.2 1.8 Underlying combined ratio * 89.8 88.5 101.2 88.6 85.2 87.2 89.2 86.2 Effect of prior year reserve reestimates on combined ratio (1.2) 2.0 (3.5) (1.2) (2.0) 2.3 0.4 0.2 Policies in Force (in thousands) Auto 497 499 502 504 507 517 497 507 Homeowners 236 237 239 240 243 248 236 243 Other personal lines 77 78 78 80 81 83 77 81 810 814 819 824 831 848 810 831 New Issued Applications (in thousands) Auto 22 20 19 21 19 17 42 36 Homeowners 12 9 9 10 10 8 21 18 Average Premium - Gross Written ($) Auto (12-month policy) 1,130 1,134 1,136 1,115 1,104 1,116 1,132 1,110 Homeowners (12-month policy) 1,782 1,768 1,766 1,730 1,701 1,698 1,775 1,700 Renewal Ratio (%) Auto 78.1 77.7 77.5 76.4 73.3 72.5 77.9 73.0 Homeowners 82.5 82.1 81.8 80.9 78.9 78.3 82.3 78.7 (1) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 2Q19 Supplement 19

 
The Allstate Corporation Auto Profitability Measures by Brand ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Allstate brand auto Net premiums written $ 5,472 $ 5,395 $ 5,272 $ 5,357 $ 5,211 $ 5,151 $ 10,867 $ 10,362 Net premiums earned $ 5,404 $ 5,321 $ 5,275 $ 5,210 $ 5,131 $ 5,046 $ 10,725 $ 10,177 Other revenue 57 57 65 56 56 54 114 110 Incurred losses (3,698) (3,485) (3,520) (3,495) (3,424) (3,189) (7,183) (6,613) Expenses (1,376) (1,381) (1,419) (1,380) (1,378) (1,300) (2,757) (2,678) Underwriting income $ 387 $ 512 $ 401 $ 391 $ 385 $ 611 $ 899 $ 996 Loss ratio 68.4 65.5 66.7 67.1 66.7 63.2 67.0 65.0 Less: effect of catastrophe losses 3.3 1.3 1.0 2.2 3.1 - 2.3 1.5 effect of prior year non-catastrophe reserve reestimates (1.6) (1.1) (1.7) (1.8) (2.9) (1.5) (1.4) (2.2) Underlying loss ratio * 66.7 65.3 67.4 66.7 66.5 64.7 66.1 65.7 Expense ratio (1) 24.4 24.9 25.7 25.4 25.8 24.7 24.6 25.2 Combined ratio 92.8 90.4 92.4 92.5 92.5 87.9 91.6 90.2 Effect of catastrophe losses (3.3) (1.3) (1.0) (2.2) (3.1) - (2.3) (1.5) Effect of prior year non-catastrophe reserve reestimates 1.6 1.1 1.7 1.7 2.9 1.5 1.4 2.2 Underlying combined ratio * 91.1 90.2 93.1 92.0 92.3 89.4 90.7 90.9 Esurance brand auto Net premiums written $ 469 $ 532 $ 452 $ 487 $ 430 $ 470 $ 1,001 $ 900 Net premiums earned $ 496 $ 475 $ 466 $ 455 $ 439 $ 411 $ 971 $ 850 Other revenue 20 20 19 21 20 20 40 40 Incurred losses (387) (367) (374) (346) (334) (309) (754) (643) Expenses (121) (129) (123) (135) (120) (121) (250) (241) Underwriting income (loss) $ 8 $ (1) $ (12) $ (5) $ 5 $ 1 $ 7 $ 6 Loss ratio 78.0 77.3 80.3 76.0 76.1 75.2 77.7 75.7 Less: effect of catastrophe losses 2.0 0.6 0.4 1.8 3.4 0.5 1.3 2.0 effect of prior year non-catastrophe reserve reestimates (0.4) 0.9 0.4 - (0.2) 0.3 0.3 - Underlying loss ratio * 76.4 75.8 79.5 74.2 72.9 74.4 76.1 73.7 Expense ratio (1) 20.4 22.9 22.3 25.1 22.8 24.6 21.6 23.6 Combined ratio 98.4 100.2 102.6 101.1 98.9 99.8 99.3 99.3 Effect of catastrophe losses (2.0) (0.6) (0.4) (1.8) (3.4) (0.5) (1.3) (2.0) Effect of prior year non-catastrophe reserve reestimates 0.4 (0.9) (0.4) - 0.2 (0.3) (0.3) - Effect of amortization of purchased intangibles - (0.2) (0.3) (0.2) - (0.2) (0.1) (0.1) Underlying combined ratio * 96.8 98.5 101.5 99.1 95.7 98.8 97.6 97.2 Encompass brand auto Net premiums written $ 146 $ 120 $ 130 $ 143 $ 146 $ 118 $ 266 $ 264 Net premiums earned $ 135 $ 134 $ 135 $ 133 $ 135 $ 134 $ 269 $ 269 Other revenue - 1 1 - 1 1 1 2 Incurred losses (87) (91) (99) (83) (82) (85) (178) (167) Expenses (42) (45) (45) (42) (45) (45) (87) (90) Underwriting income (loss) $ 6 $ (1) $ (8) $ 8 $ 9 $ 5 $ 5 $ 14 Loss ratio 64.5 67.9 73.3 62.4 60.7 63.4 66.2 62.1 Less: effect of catastrophe losses 2.2 2.2 (0.7) 1.5 3.0 0.8 2.2 1.9 effect of prior year non-catastrophe reserve reestimates (6.6) - (5.3) (0.7) (0.8) - (3.4) (0.4) Underlying loss ratio * 68.9 65.7 79.3 61.6 58.5 62.6 67.4 60.6 Expense ratio (1) 31.1 32.8 32.6 31.6 32.6 32.9 31.9 32.7 Combined ratio 95.6 100.7 105.9 94.0 93.3 96.3 98.1 94.8 Effect of catastrophe losses (2.2) (2.2) 0.7 (1.5) (3.0) (0.8) (2.2) (1.9) Effect of prior year non-catastrophe reserve reestimates 6.6 - 5.3 0.7 0.8 - 3.4 0.4 Underlying combined ratio * 100.0 98.5 111.9 93.2 91.1 95.5 99.3 93.3 (1) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 2Q19 Supplement 20

 
The Allstate Corporation Homeowners Profitability Measures by Brand ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Allstate brand homeowners Net premiums written $ 2,076 $ 1,565 $ 1,777 $ 2,008 $ 1,949 $ 1,465 $ 3,641 $ 3,414 Net premiums earned $ 1,832 $ 1,811 $ 1,787 $ 1,769 $ 1,742 $ 1,727 $ 3,643 $ 3,469 Other revenue 11 11 12 11 11 11 22 22 Incurred losses (1,508) (1,254) (1,445) (1,125) (1,308) (995) (2,762) (2,303) Expenses (414) (426) (449) (438) (408) (406) (840) (814) Underwriting (loss) income $ (79) $ 142 $ (95) $ 217 $ 37 $ 337 $ 63 $ 374 Loss ratio 82.3 69.3 80.9 63.6 75.1 57.6 75.8 66.4 Less: effect of catastrophe losses 42.6 28.2 44.6 23.6 36.0 17.4 35.5 26.7 effect of prior year non-catastrophe reserve reestimates (0.4) 0.3 (0.9) (1.1) (1.0) - (0.1) (0.5) Underlying loss ratio * 40.1 40.8 37.2 41.1 40.1 40.2 40.4 40.2 Expense ratio (1) 22.0 22.9 24.4 24.1 22.8 22.9 22.5 22.8 Combined ratio 104.3 92.2 105.3 87.7 97.9 80.5 98.3 89.2 Effect of catastrophe losses (42.6) (28.2) (44.6) (23.6) (36.0) (17.4) (35.5) (26.7) Effect of prior year non-catastrophe reserve reestimates 0.4 (0.3) 0.9 1.1 1.0 - 0.1 0.5 Underlying combined ratio * 62.1 63.7 61.6 65.2 62.9 63.1 62.9 63.0 Esurance brand homeowners Net premiums written $ 32 $ 25 $ 23 $ 30 $ 27 $ 21 $ 57 $ 48 Net premiums earned $ 27 $ 25 $ 26 $ 22 $ 22 $ 20 $ 52 $ 42 Incurred losses (31) (15) (16) (20) (28) (11) (46) (39) Expenses (7) (6) (6) (8) (8) (7) (13) (15) Underwriting (loss) income $ (11) $ 4 $ 4 $ (6) $ (14) $ 2 $ (7) $ (12) Loss ratio 114.8 60.0 61.5 90.9 127.3 55.0 88.5 92.9 Less: effect of catastrophe losses 55.5 12.0 15.4 27.3 63.6 5.0 34.6 35.7 effect of prior year non-catastrophe reserve reestimates - (4.0) 3.8 - - (5.0) (1.9) (2.3) Underlying loss ratio * 59.3 52.0 42.3 63.6 63.7 55.0 55.8 59.5 Expense ratio (1) 25.9 24.0 23.1 36.4 36.3 35.0 25.0 35.7 Combined ratio 140.7 84.0 84.6 127.3 163.6 90.0 113.5 128.6 Effect of catastrophe losses (55.5) (12.0) (15.4) (27.3) (63.6) (5.0) (34.6) (35.7) Effect of prior year non-catastrophe reserve reestimates - 4.0 (3.8) - - 5.0 1.9 2.3 Underlying combined ratio * 85.2 76.0 65.4 100.0 100.0 90.0 80.8 95.2 Encompass brand homeowners Net premiums written $ 111 $ 86 $ 98 $ 106 $ 108 $ 86 $ 197 $ 194 Net premiums earned $ 99 $ 99 $ 101 $ 100 $ 100 $ 101 $ 198 $ 201 Other revenue 1 - - 1 1 - 1 1 Incurred losses (66) (72) (58) (70) (75) (65) (138) (140) Expenses (32) (31) (33) (34) (34) (34) (63) (68) Underwriting income (loss) $ 2 $ (4) $ 10 $ (3) $ (8) $ 2 $ (2) $ (6) Loss ratio 66.7 72.7 57.4 70.0 75.0 64.3 69.7 69.7 Less: effect of catastrophe losses 22.2 25.3 8.9 20.0 34.0 25.7 23.7 29.9 effect of prior year non-catastrophe reserve reestimates - 4.0 2.0 - - (1.0) 2.0 (0.5) Underlying loss ratio * 44.5 43.4 46.5 50.0 41.0 39.6 44.0 40.3 Expense ratio (1) 31.3 31.3 32.7 33.0 33.0 33.7 31.3 33.3 Combined ratio 98.0 104.0 90.1 103.0 108.0 98.0 101.0 103.0 Effect of catastrophe losses (22.2) (25.3) (8.9) (20.0) (34.0) (25.7) (23.7) (29.9) Effect of prior year non-catastrophe reserve reestimates - (4.0) (2.0) - - 1.0 (2.0) 0.5 Underlying combined ratio * 75.8 74.7 79.2 83.0 74.0 73.3 75.3 73.6 (1) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 2Q19 Supplement 21

 
The Allstate Corporation Commercial Lines Profitability Measures (1)(2) ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 236 $ 185 $ 177 $ 173 $ 172 $ 137 $ 421 $ 309 Net premiums earned $ 226 $ 183 $ 178 $ 176 $ 165 $ 136 $ 409 $ 301 Other revenue 2 1 1 2 1 2 3 3 Incurred losses (196) (139) (141) (184) (166) (107) (335) (273) Expenses (39) (38) (37) (36) (36) (37) (77) (73) Underwriting (loss) income $ (7) $ 7 $ 1 $ (42) $ (36) $ (6) $ - $ (42) Loss ratio 86.7 76.0 79.2 104.6 100.6 78.7 81.9 90.7 Expense ratio (3) 16.4 20.2 20.2 19.3 21.2 25.7 18.1 23.3 Combined ratio 103.1 96.2 99.4 123.9 121.8 104.4 100.0 114.0 Reconciliation of combined ratio to underlying combined ratio Combined ratio 103.1 96.2 99.4 123.9 121.8 104.4 100.0 114.0 Effect of catastrophe losses (1.8) (0.5) (5.1) (3.4) (2.4) (2.2) (1.2) (2.3) Effect of prior year non-catastrophe reserve reestimates (5.3) (2.8) (0.5) (23.9) (26.7) (15.4) (4.2) (21.5) Underlying combined ratio * 96.0 92.9 93.8 96.6 92.7 86.8 94.6 90.2 Effect of prior year reserve reestimates on combined ratio 5.7 2.2 0.5 23.9 27.3 14.7 4.2 21.5 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio 0.4 (0.6) - - 0.6 (0.7) - - (1) Commercial lines are all Allstate brand products. (2) Includes an agreement with a transportation network company to provide commercial auto insurance coverage in select states that became effective March 1, 2018. Effective March 1, 2019, this coverage was expanded to 15 states from 4 states in 2018. Incurred losses are based on original pricing expectations given limited loss experience. (3) Other revenue is deducted from other costs and expenses in the expense ratio calculation. The Allstate Corporation 2Q19 Supplement 22

 
The Allstate Corporation Discontinued Lines and Coverages Reserves ($ in millions) Three months ended Twelve months ended December 31, June 30, March 31, (net of reinsurance) 2019 2019 2018 2017 2016 2015 2014 Asbestos Beginning reserves $ 847 $ 866 $ 884 $ 912 $ 960 $ 1,014 $ 1,017 Incurred claims and claims expense - - 44 61 67 39 87 Claims and claims expense paid (21) (19) (62) (89) (115) (93) (90) Ending reserves $ 826 $ 847 $ 866 $ 884 $ 912 $ 960 $ 1,014 Claims and claims expense paid as a percent of ending reserves 2.5 % 2.2 % 7.2 % 10.1 % 12.6 % 9.7 % 8.9 % Environmental Beginning reserves $ 167 $ 170 $ 166 $ 179 $ 179 $ 203 $ 208 Incurred claims and claims expense - - 20 10 23 1 15 Claims and claims expense paid (12) (3) (16) (23) (23) (25) (20) Ending reserves $ 155 $ 167 $ 170 $ 166 $ 179 $ 179 $ 203 Claims and claims expense paid as a percent of ending reserves 7.7 % 1.8 % 9.4 % 13.9 % 12.8 % 14.0 % 9.9 % Other (1) Beginning reserves $ 350 $ 355 $ 357 $ 354 $ 377 $ 395 $ 421 Incurred claims and claims expense 3 2 23 25 15 13 11 Claims and claims expense paid (3) (7) (25) (22) (38) (31) (37) Ending reserves $ 350 $ 350 $ 355 $ 357 $ 354 $ 377 $ 395 Claims and claims expense paid as a percent of ending reserves 0.9 % 2.0 % 7.0 % 6.2 % 10.7 % 8.2 % 9.4 % Total (2) Beginning reserves $ 1,364 $ 1,391 $ 1,407 $ 1,445 $ 1,516 $ 1,612 $ 1,646 Incurred claims and claims expense 3 2 87 96 105 53 113 Claims and claims expense paid (36) (29) (103) (134) (176) (149) (147) Ending reserves $ 1,331 $ 1,364 $ 1,391 $ 1,407 $ 1,445 $ 1,516 $ 1,612 Claims and claims expense paid as a percent of ending reserves 2.7 % 2.1 % 7.4 % 9.5 % 12.2 % 9.8 % 9.1 % (1) Other includes other mass torts, workers' compensation, commercial and other. (2) The 3-year survival ratio for the combined asbestos, environmental and other claims was 10.9, 10.1, 9.2, 9.2, 10.6 and 12.0 for the annualized six months of 2019 and twelve months ended 2018, 2017, 2016, 2015 and 2014, respectively, and is calculated by taking the ending reserves divided by net payments made during the year. The Allstate Corporation 2Q19 Supplement 23

 
The Allstate Corporation Service Businesses Segment Results (1) ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Service Businesses Net premiums written $ 350 $ 368 $ 489 $ 358 $ 297 $ 287 $ 718 $ 584 Net premiums earned $ 305 $ 295 $ 285 $ 275 $ 271 $ 267 $ 600 $ 538 Other revenue 48 47 34 16 16 16 95 32 Intersegment insurance premiums and service fees 33 33 33 31 29 29 66 58 Net investment income 10 9 9 7 6 5 19 11 Realized capital gains and losses 9 8 (5) - (2) (4) 17 (6) Claims and claims expense (86) (92) (78) (90) (89) (93) (178) (182) Amortization of deferred policy acquisition costs (134) (127) (122) (118) (113) (110) (261) (223) Operating costs and expenses (158) (151) (148) (124) (116) (117) (309) (233) Restructuring and related charges 1 - (3) - - (1) 1 (1) Amortization of purchased intangibles (31) (31) (33) (20) (20) (21) (62) (41) Impairment of purchased intangibles (55) - - - - - (55) - Income tax benefit 12 3 6 3 3 7 15 10 Net loss applicable to common shareholders $ (46) $ (6) $ (22) $ (20) $ (15) $ (22) $ (52) $ (37) Realized capital gains and losses, after-tax (6) (7) 4 1 1 3 (13) 4 Amortization of purchased intangibles, after-tax 25 24 26 16 16 16 49 32 Impairment of purchased intangibles, after-tax 43 - - - - - 43 - Tax Legislation expense - - - 4 - - - - Adjusted net income (loss) $ 16 $ 11 $ 8 $ 1 $ 2 $ (3) $ 27 $ (1) Allstate Dealer Services Net premiums written $ 120 $ 99 $ 105 $ 99 $ 103 $ 92 $ 219 $ 195 Total revenue (2) $ 114 $ 107 $ 105 $ 102 $ 100 $ 96 $ 221 $ 196 Claims and claims expense (12) (11) (10) (15) (14) (17) (23) (31) Other costs and expenses (3) (90) (88) (89) (85) (81) (78) (178) (159) Income tax (expense) benefit (3) (1) (1) - (2) 1 (4) (1) Net income applicable to common shareholders $ 9 $ 7 $ 5 $ 2 $ 3 $ 2 $ 16 $ 5 Realized capital gains and losses, after-tax (2) (1) - 1 1 1 (3) 2 Adjusted net income $ 7 $ 6 $ 5 $ 3 $ 4 $ 3 $ 13 $ 7 Arity Other revenue $ 1 $ - $ - $ - $ - $ - $ 1 $ - Intersegment service fees 24 24 24 22 21 21 48 42 Other costs and expenses (3) (26) (27) (26) (26) (25) (25) (53) (50) Income tax benefit - 1 1 - 1 1 1 2 Net loss applicable to common shareholders $ (1) $ (2) $ (1) $ (4) $ (3) $ (3) $ (3) $ (6) Adjusted net loss $ (1) $ (2) $ (1) $ (4) $ (3) $ (3) $ (3) $ (6) InfoArmor Other revenue $ 23 $ 24 $ 16 $ - $ - $ - $ 47 $ - Other costs and expenses (3)(4) (44) (38) (27) - - - (82) - Income tax benefit 5 3 2 - - - 8 - Net loss applicable to common shareholders $ (16) $ (11) $ (9) $ - $ - $ - $ (27) $ - Amortization of purchased intangibles, after-tax 10 10 10 - - - 20 - Adjusted net (loss) income $ (6) $ (1) $ 1 $ - $ - $ - $ (7) $ - Allstate Roadside Services Net premiums written $ 63 $ 63 $ 61 $ 65 $ 68 $ 65 $ 126 $ 133 Total revenue (2) $ 73 $ 73 $ 74 $ 77 $ 77 $ 74 $ 146 $ 151 Claims and claims expense (37) (38) (36) (38) (36) (35) (75) (71) Other costs and expenses (3) (40) (43) (47) (46) (46) (45) (83) (91) Income tax benefit 1 2 2 2 1 1 3 2 Net loss applicable to common shareholders $ (3) $ (6) $ (7) $ (5) $ (4) $ (5) $ (9) $ (9) Realized capital gains and losses, after-tax - - 1 - - - - - Adjusted net loss $ (3) $ (6) $ (6) $ (5) $ (4) $ (5) $ (9) $ (9) (1) Service Businesses results also include SquareTrade; results are on page 25. (2) Total revenue may include net premiums earned, intersegment insurance premiums and service fees, other revenue, net investment income and realized capital gains and losses. (3) Other costs and expenses may include amortization of deferred policy acquisition costs, operating costs and expenses, and restructuring and related charges. (4) Includes investments in growing the business and integration into Allstate. The Allstate Corporation 2Q19 Supplement 24

 
The Allstate Corporation SquareTrade Results As of or for the ($ in millions) As of or for the three months ended six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Net premiums written $ 167 $ 2 06 $ 323 $ 194 $ 126 $ 130 $ 373 $ 256 Net premiums earned $ 153 $ 145 $ 134 $ 125 $ 121 $ 123 $ 298 $ 244 Other revenue (1) 7 8 3 - - - 15 - Net investment income 4 4 4 2 2 1 8 3 Realized capital gains and losses 6 7 (4) 1 (1) (2) 13 (3) Claims and claims expense (37) (43) (32) (37) (39) (41) (80) (80) Amortization of deferred policy acquisition costs (56) (53) (50) (47) (45) (45) (109) (90) Other costs and expenses (48) (42) (47) (38) (32) (35) (90) (67) Amortization of purchased intangibles (18) (18) (20) (20) (20) (21) (36) (41) Impairment of purchased intangibles (55) - - - - - (55) - Income tax benefit (expense) 9 (2) 2 1 3 4 7 7 Net (loss) income applicable to common shareholders $ (35) $ 6 $ (10) $ (13) $ (11) $ (16) $ (29) $ (27) Realized capital gains and losses, after-tax (4) (6) 3 - - 2 (10) 2 Amortization of purchased intangibles, after-tax 15 14 16 16 16 16 29 32 Impairment of purchased intangibles, after-tax 43 - - - - - 43 - Tax Legislation expense - - - 4 - - - - Adjusted net income $ 19 $ 14 $ 9 $ 7 $ 5 $ 2 $ 33 $ 7 Fair value adjustments, after-tax (2) 2 1 2 2 2 2 3 4 Adjusted net income, excluding purchase accounting adjustments * $ 21 $ 1 5 $ 11 $ 9 $ 7 $ 4 $ 36 $ 11 Protection Plans in Force (in thousands) (3) 83,968 77,866 68,588 52,151 44,459 41,806 83,968 44,459 New Issued Protection Plans (in thousands) 9,754 13,500 22,110 11,120 5,319 5,564 23,254 10,883 (1) Other revenue relates to the acquisition of PlumChoice and iCracked Inc. (2) Purchase accounting adjustments made to record the acquired assets and liabilities at their fair value for unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers recorded as of the acquisition date are recognized over the life of the in force contracts or approximately three years. (3) Protection plan terms generally range between one and five years with an average term of three years. The Allstate Corporation 2Q19 Supplement 25

 
The Allstate Corporation Allstate Life Segment Results and Other Statistics As of or for the ($ in millions) As of or for the three months ended six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Premiums $ 157 $ 154 $ 158 $ 149 $ 149 $ 146 $ 311 $ 295 Contract charges 176 183 182 173 177 181 359 358 Other revenue (1) 33 27 35 30 28 26 60 54 Net investment income 125 127 125 128 130 122 252 252 Contract benefits (216) (214) (216) (193) (195) (205) (430) (400) Interest credited to contractholder funds (70) (72) (72) (72) (71) (70) (142) (141) Amortization of deferred policy acquisition costs (27) (26) (24) (36) (31) (31) (53) (62) Operating costs and expenses (91) (91) (104) (88) (86) (83) (182) (169) Restructuring and related charges (1) - - (1) (2) - (1) (2) Income tax expense on operations (18) (15) (15) (15) (19) (15) (33) (34) Adjusted net income 68 73 69 75 80 71 141 151 Realized capital gains and losses, after-tax - (4) (4) (3) (2) (2) (4) (4) DAC and DSI amortization relating to realized capital gains and losses, after-tax (1) (2) (2) (1) (3) (2) (3) (5) Tax Legislation expense - - - (16) - - - - Net income applicable to common shareholders $ 67 $ 67 $ 63 $ 55 $ 75 $ 67 $ 134 $ 142 Premiums and Contract Charges by Product Traditional life insurance premiums $ 156 $ 154 $ 157 $ 149 $ 148 $ 146 $ 310 $ 294 Accident and health insurance premiums 1 - 1 - 1 - 1 1 Interest-sensitive life insurance contract charges 176 183 182 173 177 181 359 358 Total $ 333 $ 337 $ 340 $ 322 $ 326 $ 327 $ 670 $ 653 Benefit spread Premiums $ 157 $ 154 $ 158 $ 149 $ 149 $ 146 $ 311 $ 295 Cost of insurance contract charges 123 129 127 119 121 126 252 247 Contract benefits (216) (214) (216) (193) (195) (205) (430) (400) Total benefit spread $ 64 $ 69 $ 69 $ 75 $ 75 $ 67 $ 133 $ 142 Investment spread Net investment income $ 125 $ 127 $ 125 $ 128 $ 130 $ 122 $ 252 $ 252 Interest credited to contractholder funds (70) (72) (72) (72) (71) (70) (142) (141) Total investment spread $ 55 $ 55 $ 53 $ 56 $ 59 $ 52 $ 110 $ 111 Proprietary Life Issued Policies (2) 33,105 28,425 46,421 35,454 37,021 30,479 61,530 67,500 Policies in Force (thousands) (3) Life insurance Allstate agencies 1,822 1,823 1,831 1,820 1,819 1,816 1,822 1,819 Closed channels 185 187 189 196 198 200 185 198 Accident and health insurance 2 2 2 2 2 2 2 2 Total 2,009 2,012 2,022 2,018 2,019 2,018 2,009 2,019 (1) Includes gross dealer concessions received in connection with Allstate exclusive agencies and exclusive financial specialist's sales of non-proprietary products, including mutual funds, fixed and variable annuities, disability insurance and long-term care insurance. (2) Policies issued during the period. (3) Reflect the number of contracts in force. The Allstate Corporation 2Q19 Supplement 26

 
The Allstate Corporation Allstate Life Return on Equity ($ in millions) Twelve months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2018 2018 2018 2018 Return on Equity Numerator: Net income applicable to common shareholders (1)(2) $ 252 $ 260 $ 260 $ 591 $ 611 $ 598 Denominator: Beginning equity $ 2,587 $ 2,542 $ 2,618 Ending equity (3) 2,744 2,657 2,474 $ 2,528 $ 2,587 $ 2,542 Average equity (4) $ 2,666 $ 2,600 $ 2,546 Return on equity 9.5 % 10.0 % 10.2 % 23.4 % 23.6 % 23.5 % Adjusted Net Income Return on Adjusted Equity Numerator: Adjusted net income (1) $ 285 $ 297 $ 295 $ 284 $ 285 $ 270 Denominator: Beginning equity $ 2,587 $ 2,542 $ 2,618 Less: Unrealized net capital gains and losses 89 142 234 Goodwill 175 175 175 Adjusted beginning equity $ 2,323 $ 2,225 $ 2,209 Ending equity $ 2,744 $ 2,657 $ 2,474 $ 2,528 $ 2,587 $ 2,542 Less: Unrealized net capital gains and losses 271 168 52 75 89 142 Goodwill 175 175 175 175 175 175 Adjusted ending equity $ 2,298 $ 2,314 $ 2,247 $ 2,278 $ 2,323 $ 2,225 Average adjusted equity (4) $ 2,311 $ 2,270 $ 2,228 Adjusted net income return on adjusted equity * 12.3 % 13.1 % 13.2 % 12.5 % 12.3 % 12.1 % (1) Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period. (2) Includes a $16 million Tax Legislation expense for the periods ended June 30, 2019, March 31, 2019 and December 31, 2018, a $322 million benefit for the period ended September 30, 2018, and a $338 million benefit for all other periods presented. (3) For the periods ended September 30, 2018, June 30, 2018 and March 31, 2018, ending equity has been used due to the changes in reportable segments that were effective October 2017. (4) Average equity and average adjusted equity are determined using a two-point average, with the beginning and ending equity and adjusted equity, respectively, for the twelve-month period as data points. The Allstate Corporation 2Q19 Supplement 27

 
The Allstate Corporation Allstate Benefits Segment Results and Other Statistics As of or for the ($ in millions) As of or for the three months ended six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Premiums $ 256 $ 259 $ 253 $ 259 $ 254 $ 258 $ 515 $ 512 Contract charges 28 29 28 26 29 28 57 57 Net investment income 21 19 20 19 19 19 40 38 Contract benefits (143) (145) (144) (159) (143) (149) (288) (292) Interest credited to contractholder funds (8) (9) (10) (8) (9) (8) (17) (17) Amortization of deferred policy acquisition costs (35) (43) (43) (26) (36) (41) (78) (77) Operating costs and expenses (71) (71) (71) (68) (69) (70) (142) (139) Income tax expense on operations (11) (8) (7) (10) (9) (8) (19) (17) Adjusted net income 37 31 26 33 36 29 68 65 Realized capital gains and losses, after-tax 2 3 (7) 2 - (2) 5 (2) DAC and DSI amortization relating to realized capital gains and losses, after-tax - - 1 - - - - - Net income applicable to common shareholders $ 39 $ 34 $ 20 $ 35 $ 36 $ 27 $ 73 $ 63 Benefit ratio (1) 50.4 50.3 51.2 55.8 50.5 52.1 50.3 51.3 Operating expense ratio (2) 25.0 24.7 25.3 23.9 24.4 24.5 24.8 24.4 Premiums and Contract Charges by Product Life $ 38 $ 38 $ 40 $ 39 $ 38 $ 38 $ 76 $ 76 Accident 74 76 73 75 75 74 150 149 Critical illness 120 122 117 119 119 121 242 240 Short-term disability 27 26 27 27 27 27 53 54 Other health 25 26 24 25 24 26 51 50 Total $ 284 $ 288 $ 281 $ 285 $ 283 $ 286 $ 572 $ 569 New Annualized Premium Sales by Product (3) Life $ 9 $ 8 $ 16 $ 10 $ 11 $ 8 $ 17 $ 19 Accident 20 21 49 22 20 21 41 41 Critical illness 22 24 63 22 23 25 46 48 Short-term disability 9 8 13 9 7 10 17 17 Other health 13 11 28 10 10 12 24 22 Total $ 73 $ 72 $ 169 $ 73 $ 71 $ 76 $ 145 $ 147 Annualized Premium In Force (4) $ 1,249 $ 1,251 $ 1,225 $ 1,234 $ 1,245 $ 1,237 $ 1,249 $ 1,245 (1) Benefit ratio is contract benefits divided by premiums and contract charges. (2) Operating expense ratio is operating costs and expenses divided by premiums and contract charges. (3) New annualized premium sales reflects annualized premiums at initial customer enrollment (including new accounts and new employees or policies of existing accounts). A significant portion of Allstate Benefits business is seasonally written in the fourth quarter during many clients’ annual employee benefits enrollment. (4) Premium amount paid annually for all active policies, which have not been cancelled. The Allstate Corporation 2Q19 Supplement 28

 
The Allstate Corporation Allstate Benefits Return on Equity ($ in millions) Twelve months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2018 2018 2018 2018 Return on Equity Numerator: Net income applicable to common shareholders (1)(2) $ 128 $ 125 $ 118 $ 172 $ 167 $ 158 Denominator: Beginning equity $ 848 $ 824 $ 821 Ending equity (3) 969 906 842 $ 883 $ 848 $ 824 Average equity (4) $ 909 $ 865 $ 832 Return on equity 14.1 % 14.5 % 14.2 % 19.5 % 19.7 % 19.2 % Adjusted Net Income Return on Adjusted Equity Numerator: Adjusted net income (1) $ 127 $ 126 $ 124 $ 119 $ 115 $ 106 Denominator: Beginning equity $ 848 $ 824 $ 821 Less: Unrealized net capital gains and losses (4) 8 57 Goodwill 96 96 96 Adjusted beginning equity $ 756 $ 720 $ 668 Ending equity $ 969 $ 906 $ 842 $ 883 $ 848 $ 824 Less: Unrealized net capital gains and losses 44 21 (10) (4) (4) 8 Goodwill 96 96 96 96 96 96 Adjusted ending equity $ 829 $ 789 $ 756 $ 791 $ 756 $ 720 Average adjusted equity (4) $ 793 $ 755 $ 712 Adjusted net income return on adjusted equity * 16.0 % 16.7 % 17.4 % 15.0 % 15.2 % 14.7 % (1) Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period. (2) Includes a $54 million Tax Legislation benefit for the periods ended September 30, 2018, June 30, 2018 and March 31, 2018. (3) For the periods ended September 30, 2018, June 30, 2018 and March 31, 2018, ending equity has been used due to the changes in reportable segments that were effective October 2017. (4) Average equity and average adjusted equity are determined using a two-point average, with the beginning and ending equity and adjusted equity, respectively, for the twelve-month period as data points. The Allstate Corporation 2Q19 Supplement 29

 
The Allstate Corporation Allstate Annuities Segment Results and Other Statistics As of or for the ($ in millions) As of or for the three months ended six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Contract charges $ 4 $ 3 $ 4 $ 5 $ 3 $ 3 $ 7 $ 6 Net investment income (1) 296 190 253 260 293 290 486 583 Periodic settlements and accruals on non-hedge derivative instruments 1 - - - - - 1 - Contract benefits (152) (138) (128) (146) (145) (150) (290) (295) Interest credited to contractholder funds (75) (78) (80) (83) (87) (87) (153) (174) Amortization of deferred policy acquisition costs (1) (2) (2) (2) (2) (1) (3) (3) Operating costs and expenses (8) (7) (6) (7) (9) (9) (15) (18) Income tax (expense) benefit on operations (13) 7 (9) (7) (9) (11) (6) (20) Adjusted net income (loss) 52 (25) 32 20 44 35 27 79 Realized capital gains and losses, after-tax 37 124 (153) 40 5 (23) 161 (18) Valuation changes on embedded derivatives not hedged, after-tax (2) (3) (2) 1 - 4 (5) 4 Gain on disposition of operations, after-tax 1 1 1 1 1 1 2 2 Tax Legislation benefit - - - 69 - - - - Net income (loss) applicable to common shareholders $ 88 $ 97 $ (122) $ 131 $ 50 $ 17 $ 185 $ 67 Benefit spread Cost of insurance contract charges $ 2 $ 2 $ 3 $ 3 $ 1 $ 2 $ 4 $ 3 Contract benefits excluding the implied interest on immediate annuities with life contingencies (33) (17) (6) (23) (22) (26) (50) (48) Total benefit spread $ (31) $ (15) $ (3) $ (20) $ (21) $ (24) $ (46) $ (45) Investment spread Net investment income $ 296 $ 190 $ 253 $ 260 $ 293 $ 290 $ 486 $ 583 Implied interest on immediate annuities with life contingencies (119) (121) (122) (123) (123) (124) (240) (247) Interest credited to contractholder funds excluding valuation changes on embedded derivatives not hedged (78) (81) (83) (83) (85) (83) (159) (168) Total investment spread $ 99 $ (12) $ 48 $ 54 $ 85 $ 83 $ 87 $ 168 (1) Performance-based net investment income, a component of net investment income $ 106 $ 1 $ 64 $ 72 $ 92 $ 97 $ 107 $ 189 The Allstate Corporation 2Q19 Supplement 30

 
The Allstate Corporation Allstate Annuities Return on Equity ($ in millions) Twelve months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2018 2018 2018 2018 Return on Equity Numerator: Net income applicable to common shareholders (1)(2) $ 194 $ 156 $ 76 $ 461 $ 396 $ 407 Denominator: Beginning equity $ 5,029 $ 5,009 $ 4,950 Ending equity (3) 5,437 5,278 4,949 $ 5,119 $ 5,029 $ 5,009 Average equity (4) $ 5,233 $ 5,144 $ 4,950 Return on equity 3.7 % 3.0 % 1.5 % 9.0 % 7.9 % 8.1 % Adjusted Net Income Return on Adjusted Equity Numerator: Adjusted net income (1) $ 79 $ 71 $ 131 $ 155 $ 190 $ 211 Denominator: Beginning equity $ 5,029 $ 5,009 $ 4,950 Less: Unrealized net capital gains and losses 272 279 607 Adjusted beginning equity $ 4,757 $ 4,730 $ 4,343 Ending equity $ 5,437 $ 5,278 $ 4,949 $ 5,119 $ 5,029 $ 5,009 Less: Unrealized net capital gains and losses 502 428 193 241 272 279 Adjusted ending equity $ 4,935 $ 4,850 $ 4,756 $ 4,878 $ 4,757 $ 4,730 Average adjusted equity (4) $ 4,846 $ 4,790 $ 4,550 Adjusted net income return on adjusted equity * 1.6 % 1.5 % 2.9 % 3.2 % 4.0 % 4.5 % Adjusted net income return on adjusted equity by product: Deferred annuities 13.2 % 11.7 % 10.7 % 10.4 % 11.3 % 10.6 % Immediate annuities 0.5 % 0.4 % 1.9 % 2.4 % 3.2 % 3.7 % (1) Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period. (2) Includes a $69 million Tax Legislation benefit for the periods ended June 30, 2019, March 31, 2019 and December 31, 2018, a $251 million benefit for the period ended September 30, 2018, and a $182 million benefit for all other periods presented. (3) For the periods ended September 30, 2018, June 30, 2018 and March 31, 2018, ending equity has been used due to the changes in reportable segments that were effective October 2017. (4) Average equity and average adjusted equity are determined using a two-point average, with the beginning and ending equity and adjusted equity, respectively, for the twelve-month period as data points. The Allstate Corporation 2Q19 Supplement 31

 
The Allstate Corporation Corporate and Other Segment Results ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Net investment income $ 19 $ 12 $ 15 $ 20 $ 23 $ 13 $ 31 $ 36 Operating costs and expenses (24) (21) (24) (28) (11) (8) (45) (19) Interest expense (82) (83) (81) (82) (86) (83) (165) (169) Income tax benefit on operations 19 20 18 21 18 17 39 35 Preferred stock dividends (30) (31) (43) (37) (39) (29) (61) (68) Adjusted net loss (98) (103) (115) (106) (95) (90) (201) (185) Realized capital gains and losses, after-tax 7 1 (20) - (9) (1) 8 (10) Pension and other postretirement remeasurement gains and losses, after-tax (99) (11) (395) 30 6 (11) (110) (5) Business combination expenses, after-tax - - (7) - - - - - Tax Legislation expense - - - (15) - - - - Net loss applicable to common shareholders $ (190) $ (113) $ (537) $ (91) $ (98) $ (102) $ (303) $ (200) The Allstate Corporation 2Q19 Supplement 32

 
The Allstate Corporation Investment Position June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, ($ in millions) 2019 2019 2018 2018 2018 2018 Consolidated Investments Fixed income securities, at fair value: Tax-exempt $ 6,891 $ 7,132 $ 7,000 $ 7,252 $ 7,396 $ 6,310 Taxable 51,593 51,070 50,170 50,411 49,495 50,364 Equity securities (1) 7,906 5,802 5,036 6,965 6,888 6,986 Mortgage loans 4,687 4,681 4,670 4,592 4,535 4,679 Limited partnership interests (2) 7,818 7,493 7,505 7,602 7,679 7,434 Short-term, at fair value 3,740 4,157 3,027 3,071 3,123 3,424 Other 3,856 3,786 3,852 4,075 4,125 4,092 Total $ 86,491 $ 84,121 $ 81,260 $ 83,968 $ 83,241 $ 83,289 Fixed income securities, at amortized cost: Tax-exempt $ 6,652 $ 6,980 $ 6,994 $ 7,340 $ 7,438 $ 6,379 Taxable 49,356 49,851 50,140 50,278 49,312 49,830 Ratio of fair value to amortized cost 104.4 % 102.4 % 100.1 % 100.1 % 100.2 % 100.8 % Short-term, at amortized cost $ 3,740 $ 4,157 $ 3,027 $ 3,071 $ 3,123 $ 3,424 Limited partnership interests - approximate cumulative pre-tax appreciation $ 1,410 $ 1,231 $ 1,236 $ 1,308 $ 1,366 $ 1,347 June 30, 2019 - By Segment Property- Service Allstate Allstate Allstate Corporate Liability Businesses Life Benefits Annuities and Other Total Fixed income securities, at fair value: Tax-exempt $ 6,569 $ 34 $ - $ - $ 73 $ 215 $ 6,891 Taxable 25,411 1,043 7,682 1,302 14,363 1,792 51,593 Equity securities 5,805 228 102 109 1,339 323 7,906 Mortgage loans 359 - 1,933 205 2,190 - 4,687 Limited partnership interests 4,558 - - - 3,260 - 7,818 Short-term, at fair value 1,962 103 330 29 899 417 3,740 Other 1,589 - 1,322 304 641 - 3,856 Total $ 46,253 $ 1,408 $ 11,369 $ 1,949 $ 22,765 $ 2,747 $ 86,491 Fixed income securities, at amortized cost: Tax-exempt $ 6,342 $ 34 $ - $ - $ 70 $ 206 $ 6,652 Taxable 24,643 1,008 7,152 1,245 13,547 1,761 49,356 Ratio of fair value to amortized cost 103.2 % 103.4 % 107.4 % 104.6 % 106.0 % 102.0 % 104.4 % Short-term, at amortized cost $ 1,962 $ 103 $ 330 $ 29 $ 899 $ 417 $ 3,740 Fixed income securities portfolio duration (in years) (3) 5.11 4.54 5.96 4.85 4.46 2.36 4.95 (1) Equity securities may include investments in exchange traded and mutual funds whose underlying investments are fixed income securities. (2) As of June 30, 2019, we have commitments to invest in additional limited partnership interests totaling $2.89 billion. (3) Duration measures the price sensitivity of assets and liabilities to changes in interest rates. The Allstate Corporation 2Q19 Supplement 33

 
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) ($ in millions) Three months ended Six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Net Investment Income Fixed income securities $ 543 $ 538 $ 533 $ 527 $ 509 $ 508 $ 1,081 $ 1,017 Equity securities 68 30 40 35 61 34 98 95 Mortgage loans 54 53 54 52 60 51 107 111 Limited partnership interests ("LP") (1) 254 9 142 210 173 180 263 353 Short-term 26 26 23 19 19 12 52 31 Other 67 63 67 71 68 66 130 134 Investment income, before expense 1,012 719 859 914 890 851 1,731 1,741 Less: Investment expense (2) (70) (71) (73) (70) (66) (65) (141) (131) Net investment income $ 942 $ 648 $ 786 $ 844 $ 824 $ 786 $ 1,590 $ 1,610 Interest-bearing investments (3) $ 672 $ 664 $ 659 $ 650 $ 639 $ 622 $ 1,336 $ 1,261 Equity securities 68 30 40 35 61 34 98 95 LP and other alternative investments (4) 272 25 160 229 190 195 297 385 Investment income, before expense $ 1,012 $ 719 $ 859 $ 914 $ 890 $ 851 $ 1,731 $ 1,741 Pre-Tax Yields (5) Fixed income securities 3.8 % 3.8 % 3.7 % 3.7 % 3.6 % 3.6 % 3.8 % 3.6 % Equity securities 4.7 2.6 3.2 2.3 4.1 2.5 3.7 3.3 Mortgage loans 4.6 4.6 4.6 4.6 5.2 4.4 4.6 4.8 Limited partnership interests 13.3 0.5 7.5 11.0 9.2 10.1 6.9 9.7 Total portfolio 4.8 3.4 4.1 4.4 4.3 4.1 4.1 4.2 Interest-bearing investments 4.0 3.9 3.9 3.8 3.8 3.7 3.9 3.7 Realized Capital Gains and Losses (Pre-tax) by Transaction Type Impairment write-downs $ (15) $ (14) $ (4) $ (5) $ (4) $ (1) $ (29) $ (5) Sales 117 95 (76) (22) (75) (42) 212 (117) Valuation of equity investments 200 627 (840) 198 34 (83) 827 (49) Valuation and settlements of derivative instruments 22 (46) 26 5 20 (8) (24) 12 Total $ 324 $ 662 $ (894) $ 176 $ (25) $ (134) $ 986 $ (159) Total Return on Investment Portfolio (6) Net investment income 1.1 % 0.8 % 0.9 % 1.0 % 1.0 % 0.9 % 1.9 % 1.9 % Valuation-interest bearing 1.5 1.7 (0.1) (0.1) (0.5) (1.3) 3.2 (1.8) Valuation-equity owned 0.2 0.8 (1.0) 0.2 - (0.1) 1.0 (0.1) Total 2.8 % 3.3 % (0.2) % 1.1 % 0.5 % (0.5) % 6.1 % - % Average Investment Balances (in billions) (7) $ 82.2 $ 81.2 $ 81.7 $ 82.4 $ 81.9 $ 81.0 $ 81.7 $ 81.3 (1) Income from equity method of accounting LP is generally recognized on a three-month delay due to the availability of the related financial statements from investees. (2) Includes $20 million and $18 million of investee level expenses (depreciation and asset level operating expenses) for the three months ended June 30, 2019 and 2018, respectively, and $11 million and $7 million of securities lending expenses (portion of reinvestment income on securities lending collateral paid to counterparties) for the three months ended June 30, 2019 and 2018, respectively. (3) Comprised of fixed income securities, mortgage loans, short-term investments, and other investments, including bank and agent loans, and derivatives. (4) Comprised of limited partnership interests and other alternative investments, including real estate investments classified as other investments. (5) Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the current and prior quarter investment balances. Year-to-date pre-tax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate and other consolidated investments is net of investee level expenses (depreciation and 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. (6) 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. (7) Average investment balances for the quarter are calculated as the average of the current and prior quarter investment balances. Year-to-date average investment balances are calculated as the average of investment balances at the beginning of the year and the end of each quarter during the year. For purposes of the average investment balances calculation, unrealized capital gains and losses on fixed income securities are excluded and equity securities investment balances are at cost. The Allstate Corporation 2Q19 Supplement 34

 
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) by Segment ($ in millions) Three months ended June 30, 2019 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuities Other Total Net Investment Income Fixed income securities $ 265 $ 8 $ 86 $ 12 $ 157 $ 15 $ 543 Equity securities 49 2 1 1 13 2 68 Mortgage loans 4 - 21 3 26 - 54 Limited partnership interests ("LP") 152 - - - 102 - 254 Short-term 16 - 2 1 5 2 26 Other 27 - 20 4 14 2 67 Investment income, before expense 513 10 130 21 317 21 1,012 Less: Investment expense (42) - (5) - (21) (2) (70) Net investment income $ 471 $ 10 $ 125 $ 21 $ 296 $ 19 $ 942 Net investment income, after-tax $ 379 $ 8 $ 100 $ 16 $ 235 $ 15 $ 753 Interest-bearing investments (1) $ 301 $ 8 $ 129 $ 20 $ 195 $ 19 $ 672 Equity securities 49 2 1 1 13 2 68 LP and other alternative investments (2) 163 - - - 109 - 272 Investment income, before expense $ 513 $ 10 $ 130 $ 21 $ 317 $ 21 $ 1,012 Pre-Tax Yields (3) Fixed income securities 3.4 % 3.1 % 4.8 % 4.2 % 4.6 % 3.0 % 3.8 % Equity securities 4.7 4.0 3.7 3.6 5.2 4.8 4.7 Mortgage loans 4.4 - 4.5 4.4 4.7 - 4.6 Limited partnership interests 13.8 - - - 12.6 - 13.3 Total portfolio 4.5 3.2 4.8 4.4 5.7 3.1 4.8 Interest-bearing investments 3.4 3.0 4.8 4.5 4.6 3.0 4.0 Realized Capital Gains and Losses (Pre-tax) by transaction type Impairment write-downs $ (10) $ - $ - $ - $ (5) $ - $ (15) Sales 107 2 (3) (1) 10 2 117 Valuation of equity investments 141 7 4 3 39 6 200 Valuation and settlements of derivative instruments 18 - - - 4 - 22 Total $ 256 $ 9 $ 1 $ 2 $ 48 $ 8 $ 324 (1) Comprised of fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives. (2) Comprised of limited partnership interests and other alternative investments, including real estate investments classified as other investments. (3) Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the current and prior quarter investment balances. For the purposes of the pre-tax yield calculation, income for directly held real estate and other consolidated investments is net of investee level expenses (depreciation and 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. The Allstate Corporation 2Q19 Supplement 35

 
The Allstate Corporation Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-Tax) by Segment ($ in millions) Six months ended June 30, 2019 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuities Other Total Net Investment Income Fixed income securities $ 524 $ 15 $ 176 $ 25 $ 315 $ 26 $ 1,081 Equity securities 72 3 1 1 19 2 98 Mortgage loans 8 - 43 5 51 - 107 Limited partnership interests ("LP") 158 - - - 105 - 263 Short-term 31 1 4 1 11 4 52 Other 53 - 39 9 26 3 130 Investment income, before expense 846 19 263 41 527 35 1,731 Less: Investment expense (84) - (11) (1) (41) (4) (141) Net investment income $ 762 $ 19 $ 252 $ 40 $ 486 $ 31 $ 1,590 Net investment income, after-tax $ 620 $ 15 $ 204 $ 31 $ 385 $ 25 $ 1,280 Interest-bearing investments (1) $ 594 $ 16 $ 262 $ 40 $ 391 $ 33 $ 1,336 Equity securities 72 3 1 1 19 2 98 LP and other alternative investments (2) 180 - - - 117 - 297 Investment income, before expense $ 846 $ 19 $ 263 $ 41 $ 527 $ 35 $ 1,731 Pre-Tax Yields (3) Fixed income securities 3.3 % 3.0 % 4.9 % 4.1 % 4.6 % 3.0 % 3.8 % Equity securities 3.8 3.5 3.1 2.5 3.5 3.4 3.7 Mortgage loans 4.5 - 4.5 4.4 4.6 - 4.6 Limited partnership interests 7.3 - - - 6.5 - 6.9 Total portfolio 3.7 3.0 4.9 4.4 4.7 3.1 4.1 Interest-bearing investments 3.4 3.0 4.9 4.5 4.6 3.1 3.9 Realized Capital Gains and Losses (Pre-tax) by transaction type Impairment write-downs $ (17) $ - $ - $ - $ (12) $ - $ (29) Sales 208 2 (11) (3) 14 2 212 Valuation of equity investments 594 15 7 9 194 8 827 Valuation and settlements of derivative instruments (32) - - - 8 - (24) Total $ 753 $ 17 $ (4) $ 6 $ 204 $ 10 $ 986 (1) Comprised of fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives. (2) Comprised of limited partnership interests and other alternative investments, including real estate investments classified as other investments. (3) Year-to-date pre-tax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate and other consolidated investments is net of investee level expenses (depreciation and 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. The Allstate Corporation 2Q19 Supplement 36

 
The Allstate Corporation Investment Position and Results by Strategy and Segment As of or for the three months ended ($ in millions) As of or for the three months ended June 30, 2019 June 30, 2018 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuities Other Total Total Market-based (1) Investment Position Interest-bearing investments $ 35,113 $ 1,179 $ 11,267 $ 1,840 $ 17,870 $ 2,425 $ 69,694 $ 67,733 Equity securities (2) 5,654 229 102 109 1,262 322 7,678 6,670 LP and other alternative investments (3) 740 - - - 133 - 873 930 Total $ 41,507 $ 1,408 $ 11,369 $ 1,949 $ 19,265 $ 2,747 $ 78,245 $ 75,333 Investment income Interest-bearing investments $ 298 $ 8 $ 129 $ 20 $ 194 $ 19 $ 668 $ 638 Equity securities 45 2 1 1 11 2 62 59 LP and other alternative investments 3 - - - - - 3 - Investment income, before expense 346 10 130 21 205 21 733 697 Investee level expenses (4) (2) - - - - - (2) (1) Income for yield calculation $ 344 $ 10 $ 130 $ 21 $ 205 $ 21 $ 731 $ 696 Market-based pre-tax yield 3.5 % 3.2 % 4.8 % 4.4 % 4.5 % 3.1 % 3.9 % 3.8 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (9) $ - $ - $ - $ (4) $ - $ (13) $ (3) Sales 76 2 (3) (1) 10 2 86 (74) Valuation of equity investments 141 7 4 3 37 6 198 15 Valuation and settlements of derivative instruments 15 - - - 1 - 16 1 Total $ 223 $ 9 $ 1 $ 2 $ 44 $ 8 $ 287 $ (61) Performance-based (5) Investment Position Interest-bearing investments $ 113 $ - $ - $ - $ 26 $ - $ 139 $ 112 Equity securities 151 - - - 77 - 228 218 LP and other alternative investments 4,482 - - - 3,397 - 7,879 7,578 Total $ 4,746 $ - $ - $ - $ 3,500 $ - $ 8,246 $ 7,908 Investment income Interest-bearing investments $ 3 $ - $ - $ - $ 1 $ - $ 4 $ 1 Equity securities 4 - - - 2 - 6 2 LP and other alternative investments 160 - - - 109 - 269 190 Investment income, before expense 167 - - - 112 - 279 193 Investee level expenses (12) - - - (6) - (18) (17) Income for yield calculation $ 155 $ - $ - $ - $ 106 $ - $ 261 $ 176 Performance-based pre-tax yield 13.6 % n/a n/a n/a 12.1 % n/a 12.9 % 9.0 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (1) $ - $ - $ - $ (1) $ - $ (2) $ (1) Sales 31 - - - - - 31 (1) Valuation of equity investments - - - - 2 - 2 19 Valuation and settlements of derivative instruments 3 - - - 3 - 6 19 Total $ 33 $ - $ - $ - $ 4 $ - $ 37 $ 36 (1) Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities. (2) Equity securities may include investments in exchange traded and mutual funds whose underlying investments are fixed income securities. (3) Market-based investments include publicly traded equity securities classified as limited partnerships. (4) When calculating the pre-tax yields, investee level expenses are netted against income for directly held real estate and other consolidated investments. (5) Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity and real estate. The Allstate Corporation 2Q19 Supplement 37

 
The Allstate Corporation Investment Position and Results by Strategy and Segment As of or for the six months ended ($ in millions) As of or for the six months ended June 30, 2019 June 30, 2018 Property- Service Allstate Allstate Allstate Corporate and Liability Businesses Life Benefits Annuities Other Total Total Market-based (1) Investment Position Interest-bearing investments $ 35,113 $ 1,179 $ 11,267 $ 1,840 $ 17,870 $ 2,425 $ 69,694 $ 67,733 Equity securities (2) 5,654 229 102 109 1,262 322 7,678 6,670 LP and other alternative investments (3) 740 - - - 133 - 873 930 Total $ 41,507 $ 1,408 $ 11,369 $ 1,949 $ 19,265 $ 2,747 $ 78,245 $ 75,333 Investment income Interest-bearing investments $ 590 $ 16 $ 262 $ 40 $ 390 $ 33 $ 1,331 $ 1,257 Equity securities 68 3 1 1 17 2 92 93 LP and other alternative investments 5 - - - - - 5 1 Investment income, before expense 663 19 263 41 407 35 1,428 1,351 Investee level expenses (4) (4) - - - - - (4) (3) Income for yield calculation $ 659 $ 19 $ 263 $ 41 $ 407 $ 35 $ 1,424 $ 1,348 Market-based pre-tax yield 3.4 % 3.0 % 4.9 % 4.4 % 4.5 % 3.1 % 3.9 % 3.7 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (16) $ - $ - $ - $ (10) $ - $ (26) $ (4) Sales 148 2 (11) (3) 14 2 152 (116) Valuation of equity investments 582 15 7 9 179 8 800 (68) Valuation and settlements of derivative instruments (38) - - - 4 - (34) 1 Total $ 676 $ 17 $ (4) $ 6 $ 187 $ 10 $ 892 $ (187) Performance-based (5) Investment Position Interest-bearing investments $ 113 $ - $ - $ - $ 26 $ - $ 139 $ 112 Equity securities 151 - - - 77 - 228 218 LP and other alternative investments 4,482 - - - 3,397 - 7,879 7,578 Total $ 4,746 $ - $ - $ - $ 3,500 $ - $ 8,246 $ 7,908 Investment income Interest-bearing investments $ 4 $ - $ - $ - $ 1 $ - $ 5 $ 4 Equity securities 4 - - - 2 - 6 2 LP and other alternative investments 175 - - - 117 - 292 384 Investment income, before expense 183 - - - 120 - 303 390 Investee level expenses (23) - - - (13) - (36) (33) Income for yield calculation $ 160 $ - $ - $ - $ 107 $ - $ 267 $ 357 Performance-based pre-tax yield 7.0 % n/a n/a n/a 6.2 % n/a 6.6 % 9.5 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (1) $ - $ - $ - $ (2) $ - $ (3) $ (1) Sales 60 - - - - - 60 (1) Valuation of equity investments 12 - - - 15 - 27 19 Valuation and settlements of derivative instruments 6 - - - 4 - 10 11 Total $ 77 $ - $ - $ - $ 17 $ - $ 94 $ 28 (1) Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities. (2) Equity securities may include investments in exchange traded and mutual funds whose underlying investments are fixed income securities. (3) Market-based investments include publicly traded equity securities classified as limited partnerships. (4) When calculating the pre-tax yields, investee level expenses are netted against income for directly held real estate and other consolidated investments. (5) Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity and real estate. The Allstate Corporation 2Q19 Supplement 38

 
The Allstate Corporation Performance-Based ("PB") Investments ($ in millions) As of or for the three months ended As of or for the six months ended June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2019 2019 2018 2018 2018 2018 2019 2018 Investment position Limited partnerships Private equity $ 5,952 $ 5,786 $ 5,724 $ 5,712 $ 5,585 $ 5,437 $ 5,952 $ 5,585 Real estate 1,033 984 1,134 1,170 1,207 1,212 1,033 1,207 PB - limited partnerships 6,985 6,770 6,858 6,882 6,792 6,649 6,985 6,792 Non-LP Private equity 355 331 343 327 300 249 355 300 Real estate 906 808 836 829 816 811 906 816 PB - non-LP 1,261 1,139 1,179 1,156 1,116 1,060 1,261 1,116 Total Private equity 6,307 6,117 6,067 6,039 5,885 5,686 6,307 5,885 Real estate 1,939 1,792 1,970 1,999 2,023 2,023 1,939 2,023 Total PB $ 8,246 $ 7,909 $ 8,037 $ 8,038 $ 7,908 $ 7,709 $ 8,246 $ 7,908 Investment income Limited partnerships Private equity $ 216 $ (5) $ 130 $ 123 $ 152 $ 177 $ 211 $ 329 Real estate 38 12 12 87 21 3 50 24 PB - limited partnerships 254 7 142 210 173 180 261 353 Non-LP Private equity 10 3 2 1 4 2 13 6 Real estate 15 14 17 18 16 15 29 31 PB - non-LP 25 17 19 19 20 17 42 37 Total Private equity 226 (2) 132 124 156 179 224 335 Real estate 53 26 29 105 37 18 79 55 Total PB $ 279 $ 24 $ 161 $ 229 $ 193 $ 197 $ 303 $ 390 Investee level expenses $ (18) $ (18) $ (16) $ (15) $ (17) $ (16) $ (36) $ (33) Realized capital gains and losses Limited partnerships Private equity $ (3) $ (3) $ (3) $ 1 $ (1) $ - $ (6) $ (1) Real estate 1 - - (2) - - 1 - PB - limited partnerships (2) (3) (3) (1) (1) - (5) (1) Non-LP Private equity 8 28 18 13 34 (8) 36 26 Real estate 31 32 13 1 3 - 63 3 PB - non-LP 39 60 31 14 37 (8) 99 29 Total Private equity 5 25 15 14 33 (8) 30 25 Real estate 32 32 13 (1) 3 - 64 3 Total PB $ 37 $ 57 $ 28 $ 13 $ 36 $ (8) $ 94 $ 28 Pre-Tax Yield 12.9 % 0.3 % 7.2 % 10.8 % 9.0 % 9.9 % 6.6 % 9.5 % Internal Rate of Return (1) 10 Year 12.1 % 11.4 % 10.0 % 9.3 % 9.1 % 9.0 % 5 Year 11.4 % 11.2 % 12.3 % 13.0 % 13.1 % 13.0 % (1) The internal rate of return ("IRR") is one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of return on the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments. The Allstate Corporation 2Q19 Supplement 39

 
Definitions of Non-GAAP Measures We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. Adjusted net income is net income applicable to common shareholders, excluding: • realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income, • pension and other postretirement remeasurement gains and losses, after-tax, • valuation changes on embedded derivatives not hedged, after-tax, • amortization of deferred policy acquisition costs ("DAC") and deferred sales inducements (“DSI”), to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives not hedged, after-tax, • business combination expenses and the amortization or impairment of purchased intangibles, after-tax, • gain (loss) on disposition of operations, after-tax, and • adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years. Net income applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income. We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial service business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, valuation changes on embedded derivatives not hedged, business combination expenses and the amortization or impairment of purchased intangibles, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items. Realized capital gains and losses, pension and other postretirement remeasurement gains and losses, valuation changes on embedded derivatives not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Consistent with our intent to protect results or earn additional income, adjusted net income includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes. These instruments are used for economic hedges and to replicate fixed income securities, and by including them in adjusted net income, we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments. Business combination expenses are excluded because they are non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of adjusted net income to net income applicable to common shareholders is provided in the schedule, "Contribution to Income". Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization 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 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 of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves which could increase or decrease current year income. Amortization of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedules "Property-Liability Results", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "Auto Profitability Measures by Brand", "Homeowners Profitability Measures by Brand", "Other Personal Lines Profitability Measures by Brand" and "Commercial Lines Profitability Measures". Average underlying loss (incurred pure premium) and expense is calculated as the underlying combined ratio (a non-GAAP measure) provided on the schedule "Auto Profitability Measures by Brand" and "Homeowners Profitability Measures by Brand" multiplied by average premium calculated using annualized GAAP quarterly earned premium, which is annualized (multiplied by 4), provided on the schedule "Auto Profitability Measures by Brand" and "Homeowners Profitability Measures by Brand", divided by the policies in force provided on the schedule "Policies in Force" (“average premium”). We believe that this measure is useful to investors and it is used by management for the same reasons noted above for the underlying combined ratio. The Allstate Corporation 2Q19 Supplement 40

 
Definitions of Non-GAAP Measures (continued) Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Property-Liability Results", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "Auto Profitability Measures by Brand" and "Homeowners Profitability Measures by Brand". Adjusted net income return on common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on common shareholders' equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed above. We use average common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily attributable to the Company’s earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income applicable to common shareholders and return on common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on common shareholders' equity from return on common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on common shareholders' equity and return on common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders' equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Adjusted net income return on common shareholders' equity should not be considered a substitute for return on common shareholders' equity and does not reflect the overall profitability of our business. A reconciliation of return on common shareholders' equity and adjusted net income return on common shareholders' equity can be found in the schedule, "Return on Common Shareholders' Equity". Adjusted net income return on adjusted equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses and goodwill. Return on equity is the most directly comparable GAAP measure. We use average equity excluding the effect of unrealized net capital gains and losses and goodwill for the denominator as a representation of equity primarily attributable to the Company’s earned and realized business operations. Unrealized net capital gains and losses are excluded because they vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. Goodwill is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results. We believe it is useful for investors to have adjusted net income return on adjusted equity when evaluating our performance as it represents a reliable, representative and consistent measurement of the company and management’s utilization of capital. Adjusted net income return on adjusted equity should not be considered a substitute for return on equity and does not reflect the overall profitability of our business. A reconciliation of return on equity and adjusted net income return on adjusted equity can be found in the schedules, "Allstate Life Return on Equity", "Allstate Benefits Return on Equity" and "Allstate Annuities Return on Equity". Adjusted net income, excluding purchase accounting adjustments, is a non-GAAP measure, which is computed as net income (loss) applicable to common shareholders, excluding amortization or impairment of purchased intangibles, after-tax, realized capital gains and losses, after-tax, pension and other postretirement remeasurement gains and losses, after-tax, and adjusted for the after-tax income statement effects of acquisition-related purchase accounting fair value adjustments to unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers. Net income (loss) applicable to shareholders is the GAAP measure that is most directly comparable to adjusted net income, excluding purchase accounting adjustments. We use adjusted net income, excluding purchase accounting adjustments, as an important measure to evaluate SquareTrade’s results of operations. We believe that the measure provides investors with a valuable measure of SquareTrade’s ongoing performance because it reveals trends that may be obscured by the amortization or impairment of purchased intangibles, the acquisition-related purchase accounting fair value adjustments, and the net effects of realized capital gains and losses. Amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We adjust for the effects of acquisition-related purchase accounting fair value adjustments because they relate to the acquisition and their effects are not indicative of the underlying business results and trends. Realized capital 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 SquareTrade’s operations. Adjusted net income, excluding purchase accounting adjustments, highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of net income applicable to common shareholders to assess our performance. We believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted net income, excluding purchase accounting adjustments, and their components separately and in the aggregate when reviewing and evaluating SquareTrade’s performance. Adjusted net income, excluding purchase accounting adjustments, should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of net income (loss) applicable to common shareholders to adjusted net income, excluding purchase accounting adjustments, is provided in the schedule, "SquareTrade Results". Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAP measure.  It is calculated by dividing common shareholders’ equity after excluding the impact of unrealized net capital gains and losses on fixed income securities and related DAC, DSI and life insurance reserves by total common shares outstanding plus dilutive potential common shares outstanding.  We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods.  We believe the non-GAAP ratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.  We note that book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique.  Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business.  A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share". The Allstate Corporation 2Q19 Supplement 41