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0000899051falseCommon Stock, par value $.01 per shareALLNYSECommon Stock, par value $.01 per shareALLCHX00008990512021-11-032021-11-030000899051all:SubordinatedDebenturesDue2053At5.10PercentMember2021-11-032021-11-030000899051us-gaap:SeriesGPreferredStockMember2021-11-032021-11-030000899051exch:XNYSus-gaap:SeriesHPreferredStockMember2021-11-032021-11-030000899051all:SeriesIPreferredStockMember2021-11-032021-11-030000899051us-gaap:CommonStockMemberexch:XNYS2021-11-032021-11-030000899051us-gaap:CommonStockMemberexch:XCHI2021-11-032021-11-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported): November 3, 2021
THE ALLSTATE CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware 1-11840 36-3871531
(State or other
jurisdiction of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 2775 Sanders Road, Northbrook, Illinois    60062
(Address of principal executive offices)    (Zip Code)
 
Registrant’s telephone number, including area code  (847) 402-5000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of each exchange on which registered
Common Stock, par value $0.01 per shareALLNew York Stock Exchange
Chicago Stock Exchange
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053ALL.PR.BNew York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series GALL PR GNew York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series HALL PR HNew York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series IALL PR INew York Stock Exchange

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

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






Section 2 – Financial Information
 
Item 2.02.                             Results of Operations and Financial Condition.
 
The Registrant’s press release dated November 3, 2021, announcing its financial results for the third quarter of 2021, and the Registrant’s third quarter 2021 investor supplement are furnished as Exhibits 99.1 and 99.2, respectively, to this report.  The information contained in the press release and the investor supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.
 
Section 9 – Financial Statements and Exhibits
 
Item 9.01.                             Financial Statements and Exhibits.
 
(d)  Exhibits
 
99.1                                                Registrant’s press release dated November 3, 2021
99.2                                             Third quarter 2021 Investor Supplement of The Allstate Corporation
104     Cover Page Interactive Data File (formatted as inline XBRL).































2


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

Date: November 3, 2021
3
Document

Exhibit 99.1
https://cdn.kscope.io/c1900d449d432883bef88d73f55920bb-allstatefilinglogoa.jpg
FOR IMMEDIATE RELEASE

Contacts:    
Al Scott                    Mark Nogal                
Media Relations          Investor Relations            
(847) 402-5600                (847) 402-2800                

Allstate Addresses Impact of Supply Chain Disruptions
Transformative Growth positions for continued success

NORTHBROOK, Ill., November 3, 2021 – The Allstate Corporation (NYSE: ALL) today reported financial results for the third quarter of 2021.
The Allstate Corporation Consolidated Highlights
Three months ended September 30,Nine months ended September 30,
($ in millions, except per share data and ratios)20212020% / pts
Change		20212020% / pts
Change
Consolidated revenues$12,480 $10,678 16.9 %$37,577 $30,947 21.4 %
Net income applicable to common shareholders508 1,126 (54.9)695 2,863 (75.7)
per diluted common share1.71 3.58 (52.2)2.30 9.01 (74.5)
Adjusted net income*
217 900 (75.9)3,237 2,918 10.9 
per diluted common share*0.73 2.87 (74.6)10.70 9.18 16.6 
Return on Allstate common shareholders’ equity (trailing twelve months)
Net income applicable to common shareholders13.2 %18.9 %(5.7)
Adjusted net income*21.2 %17.9 %3.3 
Book value per common share
84.62 82.39 2.7 
Property-Liability combined ratio
Recorded105.3 91.6 13.7 94.8 88.8 6.0 
Underlying combined ratio*90.4 79.7 10.7 84.5 79.6 4.9 
Property-Liability insurance premiums earned
10,159 8,952 13.5 30,064 26,696 12.6 
Catastrophe losses1,269 990 28.2 2,811 2,387 17.8 
Shelter-in-Place Payback expense— — — 29 948 (96.9)
Total policies in force (in thousands)
191,856 170,787 12.3 
*     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 operational expertise enables us to address inflation in auto repair costs while executing our Transformative Growth strategy,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation. “Auto insurance had an underwriting loss in the quarter as supply chain disruptions drove rapid price increases for used cars and original equipment parts. Auto insurance did generate attractive margins for the first nine months of the year, and we are filing for rate increases to maintain historical profitability levels. Performance-based investment income increased by $308 million reflecting the strategic decision to increase these investments, which offsets some of the decline in quarterly underwriting income. Transformative Growth is lowering expenses, providing further protection from increased loss costs. The catastrophe risk and return strategy also benefited results as nearly $1 billion of net reinsurance recoveries offset the impact of increased severe weather, including Hurricane Ida. In the quarter, revenues of $12.5 billion generated net income of $508 million and adjusted net income* earnings per share of $0.73.”
1

“In addition to offsetting short-term volatility, our ongoing strategic initiatives have increased long-term value. Transformative Growth continued to reduce costs, allowing us to provide more competitive prices. Expanded customer access has increased Allstate brand auto new business by 5% and direct sales increased to 30% of auto insurance sales in the quarter, which more than offset a slight decline in existing Allstate agent productivity. The National General acquisition is ahead of cost savings and growth goals and will increase our total market share by one percentage point this year. Allstate Protection Plans rapidly grew by leveraging retail distribution and the Allstate brand. The strategies for Allstate Health and Benefits, Roadside, Identity Protection and Arity are also on track. The Allstate Life Insurance Company divestiture closed earlier this week and combined with the previously announced divestiture of Allstate Life Insurance Company of New York increased deployable capital by $1.7 billion. The strategy to increase market share in personal property-liability and expand protection solutions is working,” concluded Wilson.



Third Quarter 2021 Results

•Total revenues of $12.5 billion in the third quarter of 2021 increased 16.9% compared to the prior year quarter, reflecting higher earned premiums from National General, Allstate brand homeowners premium growth and increased net investment income. Protection Services revenues also increased, reflecting a 23.9% increase for Allstate Protection Plans compared to the prior year quarter.

•Net income applicable to common shareholders of $508 million in the third quarter of 2021 decreased $618 million compared to the prior year quarter, primarily driven by lower underwriting income partially offset by a $300 million increase in net investment income.

•Adjusted net income* of $217 million, or $0.73 per diluted share, decreased $683 million compared to the prior year quarter. The decrease reflects higher non-catastrophe losses in auto and homeowners insurance and increased catastrophe losses, partially offset by higher earned premiums.

Property-Liability Results
Three months ended September 30,Nine months ended September 30,
($ in millions, except ratios)20212020% / pts
Change		20212020% / pts
Change
Premiums written$10,966 $9,395 16.7 %$31,057 $27,159 14.4 %
Allstate Brand9,355 9,135 2.4 26,784 26,414 1.4 
National General1,611 260 NM4,273 745 NM
Underwriting income (loss)(534)752 NM1,552 3,002 (48.3)
Allstate Brand(311)842 NM1,618 3,077 (47.4)
National General(112)43 NM41 63 (34.9)
Recorded combined ratio105.3 91.6 13.7 94.8 88.8 6.0 
Allstate Protection auto102.3 85.4 16.9 92.4 86.2 6.2 
Allstate Protection homeowners111.0 103.2 7.8 100.2 93.9 6.3 
Underlying combined ratio*90.4 79.7 10.7 84.5 79.6 4.9 
Allstate Protection auto97.6 84.3 13.3 89.9 85.1 4.8 
Allstate Protection homeowners71.6 64.8 6.8 69.6 62.6 7.0 
NM = not meaningful


•Property-Liability written premium of $11.0 billion increased 16.7% in the third quarter of 2021 compared to the prior year quarter, primarily driven by the addition of National General and Allstate brand homeowners growth. The recorded combined ratio of 105.3 generated an underwriting loss of $534 million, compared to income of $752 million in the prior year quarter. This was primarily driven by higher non-catastrophe losses in auto and homeowners insurance and increased catastrophe losses, partially offset by increased premiums.


2

◦Underwriting income was impacted by non-catastrophe prior year reserve strengthening of $162 million in the third quarter of 2021, which increased the combined ratio by 1.6 points. This includes $111 million related to asbestos, environmental and other reserves in the Run-off Property-Liability segment as a result of our annual comprehensive reserve review.

◦The underlying combined ratio* of 90.4 for the third quarter of 2021 was 10.7 points above the prior year quarter, reflecting higher non-catastrophe losses primarily driven by higher incurred auto and homeowners claims severity due to increased inflationary impacts and higher auto accident frequency.

◦Cost reductions implemented in 2020 and continuing in 2021 provide operational flexibility to improve customer value and competitive price position. The underlying expense ratio*, which excludes the amortization of purchased intangibles, decreased by 0.6 points compared to the prior year quarter. The decline was driven by lower restructuring and related charges, partially offset by higher advertising expenses. Increased claims process efficiency and expanded digital capabilities continue to drive lower loss adjustment expenses while improving the customer experience. The long-term goal is to further reduce the adjusted expense ratio* (which includes underwriting and claims) by 3 percent of premiums.

◦Allstate Protection auto insurance net written premium increased 13.4%, and policies in force increased 14.7% compared to the prior year quarter, driven by the acquisition of National General and increased new issued applications. Allstate brand auto net written premiums declined slightly from the prior year quarter as increased policies in force were offset by lower average premiums.

The recorded auto insurance combined ratio of 102.3 in the third quarter of 2021 was 16.9 points above the prior year quarter, and the underlying combined ratio* of 97.6 was 13.3 points above the prior year quarter, primarily due to an increase in the loss ratio. The auto loss ratio increase was driven by higher claim severity from rising inflationary impacts and increased accident frequency as miles driven rebound toward pre-pandemic levels. While frequency increased relative to the prior year, it remains below pre-pandemic levels. The third quarter combined ratio for auto insurance was also impacted by 2.2 points for reserve strengthening for the first two quarters of 2021. Unfavorable non-catastrophe prior year reserve reestimates also contributed to the higher loss ratio, adding 1.1 points in the quarter.

Auto insurance loss costs increased primarily due to higher used car values and replacement parts costs. Used car values began increasing above the Consumer Price Index (CPI) in late 2020, which accelerated in 2021 resulting in an increase of approximately 44% in the third quarter 2021 compared to the end of 2018. Similarly, original equipment parts prices have dramatically increased and are now up approximately 17% over the same period, approximately twice the core CPI.

◦Allstate Protection homeowners insurance net written premium grew 28.4%, and policies in force increased 7.6% compared to the third quarter of 2020, due to the addition of National General and Allstate brand growth. Allstate brand net written premium increased 9.8% compared to the prior year quarter, driven by policies in force growth and higher average premiums due to inflation in insured home valuations and approved rate increases.

The recorded homeowners insurance combined ratio of 111.0 in the third quarter of 2021 increased 7.8 points above the prior year quarter, and the underlying combined ratio* of 71.6 increased 6.8 points compared to the third quarter of 2020. The increases were primarily driven by higher severity due to inflation in labor and material costs and the inclusion of National General’s results, partially offset by higher average premium.

Catastrophe losses were $1.27 billion in the third quarter with approximately 75% related to homeowners insurance. This includes 45 events, the largest of which was Hurricane Ida. Hurricane Ida gross and net losses were $1.5 billion and $689 million, respectively. Net losses include reinsurance recoveries of $986 million and reinstatement premiums of $181 million.
3

Protection Services Results
Three months ended September 30,Nine months ended September 30,
($ in millions)20212020% / $
Change		20212020% / $
Change
Total revenues (1)
$597 $484 23.3 %$1,730 $1,395 24.0 %
Allstate Protection Plans311 251 23.9 881 702 25.5 
Allstate Dealer Services129 121 6.6 382 356 7.3 
Allstate Roadside64 59 8.5 183 172 6.4 
Arity62 25 148.0 190 81 134.6 
Allstate Identity Protection31 28 10.7 94 84 11.9 
Adjusted net income (loss) $45 $40 $5 $150 $115 $35 
Allstate Protection Plans32 36 (4)119 105 14 
Allstate Dealer Services7 7 — 25 22 3 
Allstate Roadside1 4 (3)7 8 (1)
Arity1 (3)4 4 (9)13 
Allstate Identity Protection4 (4)8 (5)(11)6 
(1) Excludes realized capital gains and losses



•Protection Services revenues increased to $597 million in the third quarter of 2021, 23.3% higher than the prior year quarter, and written premium of $651 million increased by 34.2% primarily driven by continued Allstate Protection Plans growth. Adjusted net income of $45 million increased by $5 million compared to the prior year quarter, due to higher profitability at Allstate Identity Protection and Arity.
◦Allstate Protection Plans revenue of $311 million increased $60 million, or 23.9%, compared to the prior year quarter, reflecting increased policies in force. Written premium of $439 million increased 46.3% compared to the prior year quarter, driven by the launch with the Home Depot in the first quarter, and are approximately 5.5 times higher since the acquisition in 2017. Adjusted net income of $32 million in the third quarter of 2021 was $4 million lower than the prior year quarter, driven by restructuring charges and investments in growth.

◦Allstate Dealer Services revenue of $129 million was 6.6% higher than the third quarter of 2020, driven by increased sales and the impact of lower volumes in the third quarter of 2020 from impacts of the pandemic. Adjusted net income of $7 million in the third quarter was comparable to the prior year quarter.

◦Allstate Roadside revenue of $64 million in the third quarter of 2021 increased 8.5% compared to the prior year quarter, driven by the impact of lower rescue volumes in the third quarter of 2020 from impacts of the pandemic. Margins declined slightly due to capacity constraints with third party tow providers and the proprietary “gig” Good Hands Rescue Network. Adjusted net income of $1 million in the third quarter of 2021 was $3 million below the prior year quarter.

◦Arity revenue of $62 million increased $37 million compared to the prior year quarter, primarily driven by the inclusion of Transparent.ly and LeadCloud as a result of the National General acquisition, and increased device sales driven by growth in the Allstate brand Milewise® product. Adjusted net income of $1 million in the third quarter of 2021 improved $4 million compared to the prior year quarter. Arity continues to expand its data acquisition platform with over 600 billion miles of traffic data being used to serve an increasing number of insurance and third-party application customers.

◦Allstate Identity Protection revenue of $31 million in the third quarter of 2021 increased 10.7% compared to the prior year quarter and policies in force increased by 28.4% to 3.2 million. Adjusted net income of $4 million in the third quarter of 2021 increased $8 million compared to the prior year quarter primarily driven by timing of expenses and a one-time expense benefit.
4

Allstate Health and Benefits Results
Three months ended September 30,Nine months ended September 30,
($ in millions)20212020% Change20212020% Change
Premiums and contract charges$460 $287 60.3 %$1,362 $832 63.7 %
Employer voluntary benefits251 287 (12.5)769 832 (7.6)
Group health90 — NM260 — NM
Individual accident and health119 — NM333 — NM
Adjusted net income33 33 — 160 62 158.1 

•Allstate Health and Benefits premiums and contract charges increased 60.3% compared to the prior year quarter, primarily due to the addition of group health and individual accident and health businesses acquired with National General. Adjusted net income of $33 million in the third quarter of 2021 was comparable to the third quarter of 2020 as income from the addition of National General was offset by a higher benefit ratio compared to the prior year quarter, when benefit utilization was lower due to the pandemic.

Allstate Investment Results
Three months ended September 30,Nine months ended September 30,
($ in millions, except ratios)20212020$ / pts
Change		20212020$ / pts
Change
Net investment income$764 $464 $300 $2,446 $930 $1,516 
Market-based investment income (1)
352 358 (6)1,061 1,070 (9)
Performance-based investment income (1)
437 129 3081,464 (67)1,531
Realized capital gains (losses)105 319 (214)818 597 221
Change in unrealized net capital gains and losses, pre-tax(302)198 NM(1,352)902 NM
Total return on investment portfolio1.0 %1.8 %(0.8)3.3 %4.6 %(1.3)
Total return on investment portfolio (trailing twelve months)6.0 %5.9 %0.1 
(1)Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.

•Allstate Investments $61.8 billion portfolio generated net investment income of $764 million in the third quarter of 2021, an increase of $300 million from the prior year quarter, driven by higher performance-based income.

◦Market-based investment income contributed $352 million of investment income in the third quarter of 2021, a decrease of $6 million, or 1.7%, compared to the prior year quarter as the impact of low reinvestment rates was largely mitigated by higher average assets under management and prepayment fee income.

◦Performance-based investment income totaled $437 million in the third quarter of 2021, an increase of $308 million compared to the prior year quarter, primarily due to higher private equity investment valuations. These results represent a long-term and broad approach to growth investing with nearly 90% of year-to-date performance-based income coming from assets with inception years of 2018 and prior. Approximately half of the total year-to-date performance-based income was generated by 25 individual investments.
◦Net realized capital gains were $105 million in the third quarter of 2021, compared to $319 million in the prior year quarter, primarily due to lower gains on sales of fixed income securities and a net loss on the valuation of equity investments in the current quarter compared to gains in the prior year quarter.
◦Unrealized net capital losses were $302 million in the third quarter of 2021 as an increase in interest rates resulted in lower fixed income valuations.
◦Total return on the investment portfolio was 1.0% and 3.3% for the third quarter and year-to-date periods of 2021, respectively.

5

•Discontinued Operations generated $325 million of income in the third quarter of 2021, primarily driven by a decrease in the loss on disposal and higher performance-based income. In the first quarter of 2021, the assets and liabilities of Allstate Life Insurance Company and Allstate Life Insurance Company of New York were reclassified as held for sale with results presented as discontinued operations. This includes $36.8 billion of assets and $32.4 billion of liabilities as of September 30, 2021.

On October 1, 2021 Allstate closed on the sale of Allstate Life Insurance Company of New York to Wilton Re, and on November 1, 2021 closed on the sale of Allstate Life Insurance Company to entities managed by Blackstone. These transactions generated combined proceeds of approximately $4.4 billion. Allstate agents and financial specialists will meet customers’ needs primarily by offering a full suite of life insurance and retirement solutions from third-party providers.


Proactive Capital Management

“Allstate’s proactive capital deployment provides top tier cash returns to shareholders while funding growth,” said Mario Rizzo, Chief Financial Officer. “Through a combination of dividends and share repurchases, Allstate returned nearly $1.5 billion to shareholders in the third quarter. This included executing a $750 million accelerated share repurchase program as part of the current $5 billion authorization. Earlier this week the previously announced divestiture of Allstate Life Insurance Company was completed, which combined with the sale of Allstate Life Insurance Company of New York, increased deployable capital by $1.7 billion and reduced interest rate risk. SafeAuto was acquired on October 1, 2021 to consolidate into National General’s platform, further increasing personal lines market share,” concluded Rizzo.





Visit www.allstateinvestors.com for additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, November 4. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.



Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
6

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

September 30, 2021December 31, 2020
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $38,811 and $40,034)
$39,989 $42,565 
Equity securities, at fair value (cost $2,939 and $2,740)
3,807 3,168 
Mortgage loans, net752 746 
Limited partnership interests7,578 4,563 
Short-term, at fair value (amortized cost $6,428 and $6,807)
6,428 6,807 
Other, net3,286 1,691 
Total investments61,840 59,540 
Cash690 311 
Premium installment receivables, net8,406 6,463 
Deferred policy acquisition costs4,600 3,774 
Reinsurance and indemnification recoverables, net10,442 7,215 
Accrued investment income339 371 
Property and equipment, net965 1,057 
Goodwill3,389 2,369 
Other assets, net5,966 2,756 
Assets held for sale36,803 42,131 
Total assets$133,440 $125,987 
Liabilities
Reserve for property and casualty insurance claims and claims expense$33,286 $27,610 
Reserve for future policy benefits1,263 1,028 
Contractholder funds863 857 
Unearned premiums19,627 15,946 
Claim payments outstanding1,179 957 
Deferred income taxes711 382 
Other liabilities and accrued expenses9,403 7,840 
Long-term debt7,980 7,825 
Liabilities held for sale32,421 33,325 
Total liabilities106,733 95,770 
Equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 81.0 thousand shares issued and outstanding, $2,025 aggregate liquidation preference
1,970 1,970 
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 288 million and 304 million shares outstanding
9 9 
Additional capital paid-in3,700 3,498 
Retained income52,736 52,767 
Treasury stock, at cost (612 million and 596 million shares)
(33,604)(31,331)
Accumulated other comprehensive income:
Unrealized net capital gains and losses
1,828 3,180 
Unrealized foreign currency translation adjustments3 (7)
Unamortized pension and other postretirement prior service credit87 131 
Total accumulated other comprehensive income
1,918 3,304 
Total Allstate shareholders’ equity26,729 30,217 
Noncontrolling interest(22)— 
Total equity
26,707 30,217 
Total liabilities and equity
$133,440 $125,987 



7

THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
($ in millions, except per share data)
Three months ended September 30,Nine months ended September 30,
2021202020212020
Revenues
Property and casualty insurance premiums$10,615 $9,336 $31,366 $27,794 
Accident and health insurance premiums and contract charges460 287 1,362 832 
Other revenue536 272 1,585 794 
Net investment income764 464 2,446 930 
Realized capital gains (losses)105 319 818 597 
Total revenues12,480 10,678 37,577 30,947 
Costs and expenses
Property and casualty insurance claims and claims expense8,264 6,072 21,514 16,635 
Shelter-in-Place Payback expense— — 29 948 
Accident and health insurance policy benefits269 128 746 392 
Interest credited to contractholder funds8 8 25 26 
Amortization of deferred policy acquisition costs1,582 1,386 4,650 4,095 
Operating costs and expenses1,890 1,322 5,304 4,054 
Pension and other postretirement remeasurement (gains) losses40 (71)(404)320 
Restructuring and related charges23 196 145 213 
Amortization of purchased intangibles109 31 267 88 
Interest expense69 78 246 238 
Total costs and expenses12,254 9,150 32,522 27,009 
Income from operations before income tax expense226 1,528 5,055 3,938 
Income tax expense20 312 1,008 779 
Net income from continuing operations206 1,216 4,047 3,159 
Income (loss) from discontinued operations, net of tax325 (63)(3,272)(207)
Net income531 1,153 775 2,952 
Less: Net income attributable to noncontrolling interest(7)— (7)— 
Net income attributable to Allstate538 1,153 782 2,952 
Less: Preferred stock dividends30 27 87 89 
Net income applicable to common shareholders$508 $1,126 $695 $2,863 
Earnings per common share applicable to common shareholders
Basic
Continuing operations$0.62 $3.82 $13.31 $9.77 
Discontinued operations1.11 (0.20)(10.98)(0.66)
Total$1.73 $3.62 $2.33 $9.11 
Diluted
Continuing operations$0.62 $3.78 $13.11 $9.66 
Discontinued operations1.09 (0.20)(10.81)(0.65)
Total$1.71 $3.58 $2.30 $9.01 
Weighted average common shares – Basic293.1 311.2 298.1 314.1 
Weighted average common shares – Diluted297.9 314.1 302.6 317.9 

8

Definitions of Non-GAAP Measures
We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Adjusted net income is net income (loss) applicable to common shareholders, excluding:
◦Realized capital gains and losses except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income
◦Pension and other postretirement remeasurement gains and losses
◦Business combination expenses and the amortization or impairment of purchased intangibles
◦Income or loss from discontinued operations
◦Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
◦Related income tax expense or benefit of these items
Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income.
We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, business combination expenses and the amortization or impairment of purchased intangibles, income or loss from discontinued operations and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Realized capital gains and losses, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Business combination expenses and income or loss from discontinued operations are excluded because they are non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business.
9

The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income. Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income generally use a 21% effective tax rate.
($ in millions, except per share data)Three months ended September 30,
ConsolidatedPer diluted common share
2021202020212020
Net income (loss) applicable to common shareholders$508 $1,126 $1.71 $3.58 
Realized capital (gains) losses(105)(319)(0.35)(1.01)
Pension and other postretirement remeasurement (gains) losses40 (71)0.13 (0.22)
Curtailment (gains) losses— (8)— (0.02)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments— 1 — — 
Business combination expenses and the amortization of purchased intangibles109 31 0.37 0.10 
Business combination fair value adjustment— — — — 
(Income) loss from discontinued operations(235)86 (0.79)0.27 
Income tax expense (benefit)(100)54 (0.34)0.17 
Adjusted net income *$217 $900 $0.73 $2.87 
Nine months ended September 30,
ConsolidatedPer diluted common share
2021202020212020
Net income (loss) applicable to common shareholders$695 $2,863 $2.30 $9.01 
Realized capital (gains) losses(818)(597)(2.70)(1.88)
Pension and other postretirement remeasurement (gains) losses(404)320 (1.34)1.01 
Curtailment (gains) losses— (8)— (0.03)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments1 1 — — 
Business combination expenses and the amortization of purchased intangibles289 88 0.96 0.28 
Business combination fair value adjustment(6)— (0.02)— 
(Income) loss from discontinued operations3,435 289 11.35 0.91 
Income tax expense (benefit)45 (38)0.15 (0.12)
Adjusted net income *$3,237 $2,918 $10.70 $9.18 
10

Adjusted net income return on Allstate common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders’ equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders’ equity from return on Allstate common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders’ equity and return on Allstate common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders’ equity goal. Adjusted net income return on Allstate common shareholders’ equity should not be considered a substitute for return on Allstate common shareholders’ equity and does not reflect the overall profitability of our business.
The following tables reconcile return on Allstate common shareholders’ equity and adjusted net income return on Allstate common shareholders’ equity.
($ in millions)For the twelve months ended September 30,
20212020
Return on Allstate common shareholders’ equity
Numerator:
Net income applicable to common shareholders
$3,293 $4,570 
Denominator:
Beginning Allstate common shareholders’ equity (1)
$25,293 $23,088 
Ending Allstate common shareholders’ equity (1)
24,759 25,293 
Average Allstate common shareholders’ equity
$25,026 $24,191 
Return on Allstate common shareholders’ equity13.2 %18.9 %

($ in millions)For the twelve months ended September 30,
20212020
Adjusted net income return on Allstate common shareholders’ equity
Numerator:
Adjusted net income *$4,829 $3,897 
Denominator:
Beginning Allstate common shareholders’ equity (1)
$25,293 $23,088 
Less: Unrealized net capital gains and losses 2,744 2,023 
Adjusted beginning Allstate common shareholders’ equity
22,549 21,065 
Ending Allstate common shareholders’ equity (1)
24,759 25,293 
Less: Unrealized net capital gains and losses1,828 2,744 
Adjusted ending Allstate common shareholders’ equity
22,931 22,549 
Average adjusted Allstate common shareholders’ equity
$22,740 $21,807 
Adjusted net income return on Allstate common shareholders’ equity *21.2 %17.9 %
_____________
(1) Excludes equity related to preferred stock of $1,970 million as of September 30, 2021, $1,970 million as of September 30, 2020 and $3,052 million as of September 30, 2019.
11

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio.
Property-LiabilityThree months ended September 30,Nine months ended September 30,
2021202020212020
Combined ratio
105.3 91.6 94.8 88.8 
Effect of catastrophe losses(12.5)(11.1)(9.4)(8.9)
Effect of prior year non-catastrophe reserve reestimates(1.6)(0.8)(0.4)(0.3)
Effect of amortization of purchased intangibles(0.8)— (0.5)— 
Underlying combined ratio*90.4 79.7 84.5 79.6 
Effect of prior year catastrophe reserve reestimates— (5.7)(0.7)(1.9)
Allstate Protection - Auto InsuranceThree months ended September 30,Nine months ended September 30,
2021202020212020
Combined ratio102.3 85.4 92.4 86.2 
Effect of catastrophe losses(2.9)(1.6)(1.9)(1.4)
Effect of prior year non-catastrophe reserve reestimates(1.1)0.5 (0.1)0.3 
Effect of amortization of purchased intangibles(0.7)— (0.5)— 
Underlying combined ratio*97.6 84.3 89.9 85.1 
Effect of prior year catastrophe reserve reestimates(0.1)(0.4)(0.1)(0.2)
Allstate Protection - Homeowners InsuranceThree months ended September 30,Nine months ended September 30,
2021202020212020
Combined ratio111.0 103.2 100.2 93.9 
Effect of catastrophe losses(38.0)(39.1)(29.8)(31.6)
Effect of prior year non-catastrophe reserve reestimates(0.6)0.7 (0.2)0.3 
Effect of amortization of purchased intangibles(0.8)— (0.6)— 
Underlying combined ratio*71.6 64.8 69.6 62.6 
Effect of prior year catastrophe reserve reestimates0.1 (21.3)(2.3)(6.8)



12

Underlying expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of amortization or impairment of purchased intangibles on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the amortization or impairment of purchased intangible assets. Amortization or Impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the expense ratio. The underlying expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business.
The following tables reconciles the respective expense ratio to the underlying expense ratio.
Property-LiabilityThree months ended September 30,Nine months ended September 30,
2021202020212020
Expense ratio25.1 24.9 24.3 27.5 
Effect of amortization of purchased intangibles(0.8)— (0.5)— 
Underlying expense ratio*24.3 24.9 23.8 27.5 
Adjusted underwriting expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of advertising expense, restructuring and related charges, amortization or impairment of purchased intangibles and Coronavirus related expenses on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the advertising expense, restructuring and related charges, amortization or impairment of purchased intangibles and Coronavirus related expenses. Advertising expense is excluded as it may vary significantly from period to period based on business decisions and competitive position. Restructuring and related charges are excluded because these items are not indicative of our business results or trends. Coronavirus related expenses are excluded because these items are related to programs offered during the peak of the pandemic that are no longer available. Amortization or impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price. These are not indicative of our business results or trends. A reduction in expenses enables investment flexibility that can drive growth. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the expense ratio. The adjusted underwriting expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business.
Adjusted expense ratio is a non-GAAP ratio, which is computed as the combination of adjusted underwriting expense ratio and claims expense ratio excluding catastrophe expense. We believe it is useful for investors to evaluate this ratio which is linked to a long-term expense ratio improvement commitment through 2024. The most directly comparable GAAP measure is the expense ratio. The adjusted expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business.
Coronavirus related expenses includes shelter-in-place payback and special payment plan bad debt expenses.
Claims expense ratio excluding catastrophe expense: Incurred loss adjustment expenses, net of reinsurance, excluding expenses related to catastrophes. These expenses are embedded within the loss ratio.

# # # # #
13
allcorp93021investorsupp
Investor Supplement Third Quarter 2021 The condensed consolidated financial statements and financial exhibits included herein are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The results of operations for interim periods should not be considered indicative of results to be expected for the full year. Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*). These measures are defined on the pages "Definitions of Non-GAAP Measures" and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein. The Allstate Corporation

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

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 $ 10,615 $ 10,444 $ 10,307 $ 9,279 $ 9,336 $ 9,223 $ 9,235 $ 31,366 $ 27,794 460 447 455 262 287 263 282 1,362 832 536 494 555 271 272 257 265 1,585 794 764 974 708 660 464 220 246 2,446 930 105 287 426 490 319 440 (162) 818 597 12,480 12,646 12,451 10,962 10,678 10,403 9,866 37,577 30,947 8,264 7,207 6,043 5,366 6,072 5,222 5,341 21,514 16,635 - 29 - - - 738 210 29 948 269 244 233 124 128 123 141 746 392 8 8 9 7 8 9 9 25 26 1,582 1,545 1,523 1,382 1,386 1,344 1,365 4,650 4,095 1,890 1,683 1,731 1,440 1,322 1,394 1,338 5,304 4,054 40 (134) (310) (371) (71) 73 318 (404) 320 23 71 51 40 196 13 4 145 213 109 105 53 30 31 29 28 267 88 69 91 86 80 78 79 81 246 238 12,254 10,849 9,419 8,098 9,150 9,024 8,835 32,522 27,009 226 1,797 3,032 2,864 1,528 1,379 1,031 5,055 3,938 20 362 626 594 312 273 194 1,008 779 206 1,435 2,406 2,270 1,216 1,106 837 4,047 3,159 325 196 (3,793) 354 (63) 144 (288) (3,272) (207) 531 1,631 (1,387) 2,624 1,153 1,250 549 775 2,952 (7) 6 (6) - - - - (7) - 538 1,625 (1,381) 2,624 1,153 1,250 549 782 2,952 30 30 27 26 27 26 36 87 89 $ 508 $ 1,595 $ (1,408) $ 2,598 $ 1,126 $ 1,224 $ 513 $ 695 $ 2,863 $ 0.62 $ 4.68 $ 7.88 $ 7.38 $ 3.82 $ 3.44 $ 2.52 $ 13.31 $ 9.77 1.11 0.66 (12.53) 1.16 (0.20) 0.46 (0.90) (10.98) (0.66) $ 1.73 $ 5.34 $ (4.65) $ 8.54 $ 3.62 $ 3.90 $ 1.62 $ 2.33 $ 9.11 $ 0.62 $ 4.61 $ 7.78 $ 7.30 $ 3.78 $ 3.41 $ 2.48 $ 13.11 $ 9.66 1.09 0.65 (12.38) 1.15 (0.20) 0.45 (0.89) (10.81) (0.65) $ 1.71 $ 5.26 $ (4.60) $ 8.45 $ 3.58 $ 3.86 $ 1.59 $ 2.30 $ 9.01 293.1 298.8 302.5 304.3 311.2 313.7 317.4 298.1 314.1 297.9 303.3 306.4 307.6 314.1 317.0 322.4 302.6 317.9 $ 0.81 $ 0.81 $ 0.81 $ 0.54 $ 0.54 $ 0.54 $ 0.54 $ 2.43 $ 1.62 Weighted average common shares - Basic Weighted average common shares - Diluted Cash dividends declared per common share Diluted Continuing operations Discontinued operations Total Basic Continuing operations Discontinued operations Total Less: Preferred stock dividends Net income (loss) applicable to common shareholders Earnings per common share Income (loss) from discontinued operations, net of tax Net income (loss) Less: Net income (loss) attributable to noncontrolling interest Net income (loss) attributable to Allstate Income tax expense Nine months ended Net income from continuing operations Interest expense Total costs and expenses Income from operations before income tax expense Amortization of deferred policy acquisition costs Operating costs and expenses Pension and other postretirement remeasurement (gains) losses Restructuring and related charges Amortization of purchased intangibles Costs and expenses Property and casualty insurance claims and claims expense Shelter-in-Place Payback expense Accident and health insurance policy benefits Interest credited to contractholder funds Accident and health insurance premiums and contract charges ^ Other revenue ^ Net investment income Realized capital gains (losses) Total revenues ($ in millions, except per share data) Revenues Property and casualty insurance premiums ^ The Allstate Corporation Condensed Consolidated Statements of Operations Three months ended The Allstate Corporation 3Q21 Supplement 1

 
($ in millions, except per share data) Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 Contribution to income Net income (loss) applicable to common shareholders $ 508 $ 1,595 $ (1,408) $ 2,598 $ 1,126 $ 1,224 $ 513 $ 695 $ 2,863 Realized capital (gains) losses (105) (287) (426) (490) (319) (440) 162 (818) (597) Pension and other postretirement remeasurement (gains) losses 40 (134) (310) (371) (71) 73 318 (404) 320 Curtailment (gains) losses - - - - (8) - - - (8) Reclassification of periodic settlements and accruals on non- hedge derivative instruments - - 1 (1) 1 - - 1 1 Business combination expenses and the amortization of purchased intangibles 109 105 75 30 31 29 28 289 88 Business combination fair value adjustment - (6) - - - - - (6) - (Income) loss from discontinued operations (235) (493) 4,163 (446) 86 (167) 370 3,435 289 Income tax expense (benefit) (100) 369 (224) 272 54 97 (189) 45 (38) Adjusted net income * $ 217 $ 1,149 $ 1,871 $ 1,592 $ 900 $ 816 $ 1,202 $ 3,237 $ 2,918 Income per common share - Diluted Net income (loss) applicable to common shareholders $ 1.71 $ 5.26 $ (4.60) $ 8.45 $ 3.58 $ 3.86 $ 1.59 $ 2.30 $ 9.01 Realized capital (gains) losses (0.35) (0.95) (1.39) (1.59) (1.01) (1.39) 0.50 (2.70) (1.88) Pension and other postretirement remeasurement (gains) losses 0.13 (0.44) (1.01) (1.21) (0.22) 0.23 0.99 (1.34) 1.01 Curtailment (gains) losses - - - - (0.02) - - - (0.03) Reclassification of periodic settlements and accruals on non- hedge derivative instruments - - - - - - - - - Business combination expenses and the amortization of purchased intangibles 0.37 0.35 0.25 0.10 0.10 0.09 0.09 0.96 0.28 Business combination fair value adjustment - (0.02) - - - - - (0.02) - (Income) loss from discontinued operations (0.79) (1.63) 13.59 (1.45) 0.27 (0.52) 1.15 11.35 0.91 Income tax expense (benefit) (0.34) 1.22 (0.73) 0.88 0.17 0.31 (0.59) 0.15 (0.12) Adjusted net income * $ 0.73 $ 3.79 $ 6.11 $ 5.18 $ 2.87 $ 2.58 $ 3.73 $ 10.70 $ 9.18 Weighted average common shares - Diluted 297.9 303.3 306.4 307.6 314.1 317.0 322.4 302.6 317.9 The Allstate Corporation Contribution to Income Three months ended Nine months ended The Allstate Corporation 3Q21 Supplement 2

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 $ 24,759 $ 26,037 $ 24,649 $ 28,247 $ 25,293 $ 25,016 $ 22,203 292.6 301.6 304.0 308.7 307.0 315.8 318.7 $ 84.62 $ 86.33 $ 81.08 $ 91.50 $ 82.39 $ 79.21 $ 69.67 $ 24,759 $ 26,037 $ 24,649 $ 28,247 $ 25,293 $ 25,016 $ 22,203 1,830 2,167 1,680 3,185 2,750 2,610 534 $ 22,929 $ 23,870 $ 22,969 $ 25,062 $ 22,543 $ 22,406 $ 21,669 292.6 301.6 304.0 308.7 307.0 315.8 318.7 $ 78.36 $ 79.14 $ 75.56 $ 81.19 $ 73.43 $ 70.95 $ 67.99 $ 7,980 $ 7,996 $ 7,996 $ 7,825 $ 6,635 $ 6,634 $ 6,633 $ 34,709 $ 36,203 $ 34,815 $ 38,042 $ 33,898 $ 33,620 $ 30,806 29.9 % 28.3 % 29.8 % 25.9 % 24.3 % 24.6 % 27.4 % 23.0 % 22.1 % 23.0 % 20.6 % 19.6 % 19.7 % 21.5 % (1) (2) Total capital resources Ratio of debt to Allstate shareholders' equity Common shares outstanding were 287,980,136 and 304,192,788 as of September 30, 2021 and December 31, 2020, respectively. Excludes equity related to preferred stock of $1,970 million at September 30, 2021, $2,170 million at June 30, 2021 and March 31, 2021 and $1,970 million for all other periods presented. Ratio of debt to capital resources Denominator: Common shares outstanding and dilutive potential common shares outstanding Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * Total debt Numerator: Allstate common shareholders' equity Less: Unrealized net capital gains and losses on fixed income securities Adjusted Allstate common shareholders' equity Book value per common share Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities The Allstate Corporation Book Value per Common Share and Debt to Capital Denominator: Common shares outstanding and dilutive potential common shares outstanding (2) ($ in millions, except per share data) Book value per common share Numerator: Allstate common shareholders' equity (1) The Allstate Corporation 3Q21 Supplement 3

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 3,293$ 3,911$ 3,540$ 5,461$ 4,570$ 4,333$ 3,930$ 25,293$ 25,016$ 22,203$ 23,750$ 23,088$ 22,546$ 21,488$ 24,759 26,037 24,649 28,247 25,293 25,016 22,203 25,026$ 25,527$ 23,426$ 25,999$ 24,191$ 23,781$ 21,846$ 13.2 % 15.3 % 15.1 % 21.0 % 18.9 % 18.2 % 18.0 % 4,829$ 5,512$ 5,179$ 4,510$ 3,897$ 3,887$ 3,687$ 25,293$ 25,016$ 22,203$ 23,750$ 23,088$ 22,546$ 21,488$ 2,744 2,602 530 1,887 2,023 1,654 972 22,549 22,414 21,673 21,863 21,065 20,892 20,516 24,759 26,037 24,649 28,247 25,293 25,016 22,203 1,828 2,164 1,680 3,180 2,744 2,602 530 22,931 23,873 22,969 25,067 22,549 22,414 21,673 22,740$ 23,144$ 22,321$ 23,465$ 21,807$ 21,653$ 21,095$ 21.2 % 23.8 % 23.2 % 19.2 % 17.9 % 18.0 % 17.5 % (1) (2) Beginning Allstate common shareholders' equity Less: Unrealized net capital gains and losses Adjusted beginning Allstate common shareholders' equity Excludes equity related to preferred stock of $1,970 million at September 30, 2021, $2,170 million at June 30, 2021 and March 31, 2021 and $1,970 million for all other periods presented. Net income applicable to common shareholders and adjusted net income reflect a trailing twelve-month period. Ending Allstate common shareholders' equity Less: Unrealized net capital gains and losses Adjusted ending Allstate common shareholders' equity Average adjusted Allstate common shareholders' equity ^ Adjusted net income return on Allstate common shareholders' equity * Numerator: Adjusted net income * (1) Denominator: Return on Allstate common shareholders' equity Adjusted net income return on Allstate common shareholders' equity Beginning Allstate common shareholders' equity Ending Allstate common shareholders' equity (2) Average Allstate common shareholders' equity ^ Numerator: Net income applicable to common shareholders (1) Denominator: ($ in millions) Return on Allstate common shareholders' equity Return on Allstate Common Shareholders' Equity The Allstate Corporation Twelve months ended The Allstate Corporation 3Q21 Supplement 4

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 25,654 25,614 25,453 22,260 22,360 22,451 22,311 7,138 7,111 7,090 6,643 6,634 6,616 6,590 4,848 4,816 4,774 4,530 4,528 4,489 4,460 319 322 325 216 219 221 224 37,959 37,863 37,642 33,649 33,741 33,777 33,585 21,951 21,920 21,824 21,809 21,900 21,978 21,826 6,496 6,459 6,427 6,427 6,414 6,391 6,360 3,703 3,694 3,629 451 460 473 485 642 652 663 216 220 225 230 141,809 139,453 133,510 128,982 125,831 120,301 107,124 3,980 4,013 3,996 4,042 4,075 4,101 4,096 533 539 540 548 558 562 576 3,197 3,041 2,702 2,700 2,490 2,312 1,932 149,519 147,046 140,748 136,272 132,954 127,276 113,728 4,378 4,452 4,522 3,950 4,092 4,410 4,309 191,856 189,361 182,912 173,871 170,787 165,463 151,622 (1) • • • • • • • • (2) Policy counts are based on items rather than customers. Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. Allstate Health and Benefits reflects certificate counts as opposed to group counts. Allstate Identity Protection reflects individual customer counts for identity protection products. Allstate Protection Plans represents active consumer product protection plans. Allstate Dealer Services reflects service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators ("TPAs") as the customer relationship is managed by the TPAs. PIF does not reflect banking relationships for our lender-placed insurance products to customers including fire, home and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Commercial lines PIF for shared economy agreements reflect contracts that cover multiple drivers as opposed to individual drivers. Allstate Roadside reflects memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner. Allstate Identity Protection Total Allstate Health and Benefits Total policies in force Protection Services Allstate Protection Plans Allstate Dealer Services Allstate Roadside Homeowners National General (2) Auto Homeowners Other personal lines Commercial lines Total Allstate brand Auto Policies in force statistics (in thousands) (1) Allstate Protection Auto Homeowners The Allstate Corporation Policies in Force The Allstate Corporation 3Q21 Supplement 5

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 $ 10,966 $ 10,323 $ 9,768 $ 8,609 $ 9,395 $ 9,172 $ 8,592 $ 31,057 $ 27,159 (672) (312) (280) 244 (470) (349) 370 (1,264) (449) (135) (2) 408 31 27 40 (81) 271 (14) 10,159 10,009 9,896 8,884 8,952 8,863 8,881 30,064 26,696 365 321 385 218 220 206 213 1,071 639 (8,145) (7,103) (5,945) (5,268) (5,968) (5,139) (5,251) (21,193) (16,358) - (29) - - - (738) (210) (29) (948) (1,346) (1,319) (1,303) (1,168) (1,158) (1,149) (1,167) (3,968) (3,474) (1,552) (1,384) (1,344) (1,207) (1,107) (1,133) (1,114) (4,280) (3,354) (15) (66) (32) (36) (187) (8) (4) (113) (199) $ (534) $ 429 $ 1,657 $ 1,423 $ 752 $ 902 $ 1,348 $ 1,552 $ 3,002 $ 1,269 $ 952 $ 590 $ 424 $ 990 $ 1,186 $ 211 $ 2,811 $ 2,387 75 71 19 5 3 3 1 165 7 563 558 553 514 517 553 572 1,674 1,642 80.2 71.0 60.1 59.3 66.7 58.0 59.1 70.5 61.3 (12.5) (9.5) (6.0) (4.8) (11.1) (13.4) (2.4) (9.4) (8.9) (1.6) 0.2 (0.1) - (0.8) 0.4 (0.3) (0.4) (0.3) 66.1 61.7 54.0 54.5 54.8 45.0 56.4 60.7 52.1 25.1 24.7 23.2 24.7 24.9 31.8 25.7 24.3 27.5 (0.8) (0.7) (0.1) (0.1) - - - (0.5) - 24.3 24.0 23.1 24.6 24.9 31.8 25.7 23.8 27.5 (3.2) (3.1) (3.2) (3.7) (2.3) (2.4) (2.3) (3.2) (2.3) (0.1) (0.6) (0.3) (0.4) (2.1) (0.1) - (0.4) (0.7) - (0.2) - 0.1 (0.2) (8.8) (2.4) - (3.8) 21.0 20.1 19.6 20.6 20.3 20.5 21.0 20.2 20.7 5.5 5.6 5.6 5.8 5.8 6.2 6.4 5.6 6.1 26.5 25.7 25.2 26.4 26.1 26.7 27.4 25.8 26.8 105.3 95.7 83.3 84.0 91.6 89.8 84.8 94.8 88.8 (12.5) (9.5) (6.0) (4.8) (11.1) (13.4) (2.4) (9.4) (8.9) (1.6) 0.2 (0.1) - (0.8) 0.4 (0.3) (0.4) (0.3) (0.8) (0.7) (0.1) (0.1) - - - (0.5) - 90.4 85.7 77.1 79.1 79.7 76.8 82.1 84.5 79.6 1.2 - 0.1 0.1 1.5 - - 0.4 0.6 $ (311) $ 414 $ 1,515 $ 1,414 $ 842 $ 899 $ 1,336 $ 1,618 $ 3,077 (112) 15 138 12 43 6 14 41 63 2 2 7 - 2 - 1 11 3 (421) 431 1,660 1,426 887 905 1,351 1,670 3,143 (113) (2) (3) (3) (135) (3) (3) (118) (141) $ (534) $ 429 $ 1,657 $ 1,423 $ 752 $ 902 $ 1,348 $ 1,552 $ 3,002 $ 710 $ 931 $ 673 $ 619 $ 422 $ 178 $ 202 $ 2,314 $ 802 (26) (283) (475) (415) (241) (210) (303) (784) (754) (2) National General (2) Answer Financial Total underwriting income for Allstate Protection Run-off Property-Liability Total underwriting income (loss) for Property-Liability Other financial information Net investment income Income tax expense on operations Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. Effect of Run-off Property-Liability on combined ratio Allstate brand Effect of amortization of purchased intangibles Effect of Coronavirus related expenses ^ Adjusted underwriting expense ratio * Underlying combined ratio * (1) Underwriting income (loss) Underlying expense ratio * Combined ratio Effect of catastrophe losses Effect of advertising expense Effect of prior year non-catastrophe reserve reestimates Effect of restructuring and related charges Claims expense ratio excluding catastrophe expense Adjusted expense ratio * Underlying loss ratio * Nine months ended Expense ratio ^ Effect of amortization of purchased intangibles Operating ratios and reconciliations to underlying ratios Claims expense excluding catastrophe expense ^ Loss ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Underwriting income (loss) (1) Catastrophe losses Amortization of purchased intangibles Claims and claims expense Shelter-in-Place Payback expense Amortization of deferred policy acquisition costs Operating costs and expenses Restructuring and related charges (Increase) decrease in unearned premiums Other Premiums earned Other revenue ($ in millions, except ratios) Premiums written The Allstate Corporation Property-Liability Results Three months ended The Allstate Corporation 3Q21 Supplement 6

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 7,171$ 6,818$ 7,012$ 5,886$ 6,326$ 6,190$ 6,209$ 21,001$ 18,725$ 3,004 2,722 2,083 2,045 2,339 2,284 1,732 7,809 6,355 584 579 476 465 542 528 430 1,639 1,500 207 204 197 213 188 170 221 608 579 10,966$ 10,323$ 9,768$ 8,609$ 9,395$ 9,172$ 8,592$ 31,057$ 27,159$ 6,912$ 6,883$ 6,809$ 6,103$ 6,210$ 6,172$ 6,155$ 20,604$ 18,537$ 2,522 2,411 2,392 2,090 2,073 2,054 2,037 7,325 6,164 521 519 505 484 486 478 471 1,545 1,435 204 196 190 207 183 159 218 590 560 10,159$ 10,009$ 9,896$ 8,884$ 8,952$ 8,863$ 8,881$ 30,064$ 26,696$ (159)$ 394$ 1,327$ 883$ 906$ 998$ 657$ 1,562$ 2,561$ (277) (7) 268 449 (67) (139) 581 (16) 375 40 39 33 89 42 43 90 112 175 (54) (25) (2) (16) (14) (11) 5 (81) (20) 27 28 27 21 18 14 17 82 49 2 2 7 - 2 - 1 11 3 (421)$ 431$ 1,660$ 1,426$ 887$ 905$ 1,351$ 1,670$ 3,143$ 560 556 552 511 515 551 569 1,668 1,635 79.0 71.0 60.0 59.3 65.2 58.0 59.1 70.1 60.7 (12.5) (9.5) (6.0) (4.8) (11.1) (13.4) (2.4) (9.4) (8.9) (0.4) 0.2 - - 0.7 0.4 (0.3) (0.1) 0.3 66.1 61.7 54.0 54.5 54.8 45.0 56.4 60.6 52.1 25.1 24.7 23.2 24.6 24.9 31.8 25.7 24.3 27.5 (0.8) (0.7) (0.1) - - - - (0.5) (0.1) 24.3 24.0 23.1 24.6 24.9 31.8 25.7 23.8 27.4 (3.2) (3.1) (3.2) (3.7) (2.3) (2.4) (2.3) (3.2) (2.3) (0.2) (0.6) (0.3) (0.4) (2.1) (0.1) - (0.4) (0.7) - (0.2) - 0.1 (0.2) (8.8) (2.4) - (3.8) 20.9 20.1 19.6 20.6 20.3 20.5 21.0 20.2 20.6 104.1 95.7 83.2 83.9 90.1 89.8 84.8 94.4 88.2 90.4 85.7 77.1 79.1 79.7 76.8 82.1 84.4 79.5 5.5 5.6 5.6 5.8 5.8 6.2 6.4 5.5 6.1 Claims expense ratio excluding catastrophe expense ^ Combined ratio Underlying combined ratio * Effect of advertising expense Effect of restructuring and related charges Effect of Coronavirus related expenses ^ Adjusted underwriting expense ratio * Underlying expense ratio * Loss ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Underlying loss ratio * Expense ratio Claims expense excluding catastrophe expense ^ Total Effect of amortization of purchased intangibles Nine months ended Other business lines ^ Answer Financial Total Operating ratios and reconciliations to underlying ratios Underwriting income (loss) Homeowners Other personal lines Auto Auto Homeowners Commercial lines Commercial lines Other personal lines Other personal lines Commercial lines ($ in millions, except ratios) Net premiums earned Premiums written Total The Allstate Corporation Allstate Protection Profitability Measures Auto Homeowners Three months ended The Allstate Corporation 3Q21 Supplement 7

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 7,171$ 6,818$ 7,012$ 5,886$ 6,326$ 6,190$ 6,209$ 21,001$ 18,725$ 6,912$ 6,883$ 6,809$ 6,103$ 6,210$ 6,172$ 6,155$ 20,604$ 18,537$ (159)$ 394$ 1,327$ 883$ 906$ 998$ 657$ 1,562$ 2,561$ 76.9 68.7 57.2 60.2 59.7 47.9 62.2 67.7 56.6 (2.9) (2.2) (0.4) (0.6) (1.6) (2.2) (0.2) (1.9) (1.4) (1.1) 0.4 0.2 - 0.5 0.8 (0.4) (0.1) 0.3 72.9 66.9 57.0 59.6 58.6 46.5 61.6 65.7 55.5 25.4 25.6 23.3 25.3 25.7 35.9 27.1 24.7 29.6 (0.7) (0.7) (0.2) - - - - (0.5) - 24.7 24.9 23.1 25.3 25.7 35.9 27.1 24.2 29.6 102.3 94.3 80.5 85.5 85.4 83.8 89.3 92.4 86.2 (2.9) (2.2) (0.4) (0.6) (1.6) (2.2) (0.2) (1.9) (1.4) (1.1) 0.4 0.2 - 0.5 0.8 (0.4) (0.1) 0.3 (0.7) (0.7) (0.2) - - - - (0.5) - 97.6 91.8 80.1 84.9 84.3 82.4 88.7 89.9 85.1 - 0.4 - - - 11.9 3.4 0.1 5.1 1,448 1,421 1,471 846 902 882 897 4,340 2,681 6,153$ 5,952$ 6,060$ 5,766$ 6,192$ 6,054$ 6,091$ 18,165$ 18,337$ 6,009$ 6,036$ 6,014$ 5,977$ 6,081$ 6,037$ 6,020$ 18,059$ 18,138$ (123)$ 364$ 1,203$ 882$ 897$ 966$ 659$ 1,444$ 2,522$ 102.0 94.0 80.0 85.2 85.2 84.0 89.1 92.0 86.1 97.5 92.0 79.6 84.7 84.2 82.6 88.5 89.7 85.1 648 658 651 603 682 664 672 1,957 2,018 284 268 278 227 206 204 209 830 619 604 600 607 621 621 612 616 604 616 87.2 87.1 86.7 87.2 87.9 87.6 87.4 87.0 87.6 16.6 47.3 (18.8) (28.7) (28.6) (46.4) (12.2) 10.1 (29.2) 15.1 (4.9) 5.5 5.1 7.9 20.4 8.1 5.6 11.5 1,018$ 866$ 952$ 120$ 134$ 136$ 118$ 2,836$ 388$ 903$ 847$ 795$ 126$ 129$ 135$ 135$ 2,545$ 399$ (36)$ 30$ 124$ 1$ 9$ 32$ (2)$ 118$ 39$ 104.0 96.5 84.4 99.2 93.0 76.3 101.5 95.4 90.2 97.7 89.8 83.8 96.0 89.1 74.1 100.0 90.7 87.7 516 495 542 16 14 14 16 1,553 44 (1) (2) Property damage gross claim frequency ^ (%) Property damage paid claim severity ^ (%) Underlying combined ratio * (2) New issued application (in thousands) Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. Excludes 5.0 points, 5.5 points, 1.1 points and 3.9 points in the third quarter, second quarter, first quarter and first nine months of 2021, respectively, related to the effect of amortization of purchased intangibles. National General (1) Net premiums earned Underwriting income (loss) Premiums written Combined ratio New issued applications (in thousands) Agency channel Direct channel Average premium - gross written ^ ($) Renewal ratio ^ (%) Net premiums earned Underwriting income (loss) Premiums written Combined ratio Underlying combined ratio * Effect of Shelter-in-Place Payback expense on combined and expense ratios New issued applications (in thousands) ^ Nine months ended Allstate brand Underlying expense ratio * Combined ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Effect of amortization of purchased intangibles Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Underlying loss ratio * Expense ratio Effect of amortization of purchased intangibles Net premiums earned Operating ratios and reconciliations to underlying ratios Loss ratio ($ in millions, except ratios) Allstate Protection Underlying combined ratio * The Allstate Corporation Auto Profitability Measures Premiums written Underwriting income (loss) Three months ended The Allstate Corporation 3Q21 Supplement 8

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 3,004$ 2,722$ 2,083$ 2,045$ 2,339$ 2,284$ 1,732$ 7,809$ 6,355$ 2,522$ 2,411$ 2,392$ 2,090$ 2,073$ 2,054$ 2,037$ 7,325$ 6,164$ (277)$ (7)$ 268$ 449$ (67)$ (139)$ 581$ (16)$ 375$ 85.9 76.3 64.9 55.1 80.4 84.8 48.9 75.9 71.4 (38.0) (30.3) (20.7) (16.8) (39.1) (46.4) (9.0) (29.8) (31.6) (0.6) 0.3 (0.2) (0.1) 0.7 0.2 (0.1) (0.2) 0.3 47.3 46.3 44.0 38.2 42.0 38.6 39.8 45.9 40.1 25.1 24.0 23.9 23.4 22.8 22.0 22.6 24.3 22.5 (0.8) (0.8) (0.2) (0.1) - - - (0.6) - 24.3 23.2 23.7 23.3 22.8 22.0 22.6 23.7 22.5 111.0 100.3 88.8 78.5 103.2 106.8 71.5 100.2 93.9 (38.0) (30.3) (20.7) (16.8) (39.1) (46.4) (9.0) (29.8) (31.6) (0.6) 0.3 (0.2) (0.1) 0.7 0.2 (0.1) (0.2) 0.3 (0.8) (0.8) (0.2) (0.1) - - - (0.6) - 71.6 69.5 67.7 61.5 64.8 60.6 62.4 69.6 62.6 287 285 242 227 256 238 212 814 706 2,452$ 2,313$ 1,727$ 1,955$ 2,234$ 2,178$ 1,645$ 6,492$ 6,057$ 2,080$ 2,032$ 2,008$ 1,993$ 1,974$ 1,955$ 1,936$ 6,120$ 5,865$ (208)$ 7$ 262$ 442$ (93)$ (118)$ 567$ 61$ 356$ 110.0 99.7 87.0 77.8 104.7 106.0 70.7 99.0 93.9 67.5 66.6 63.3 60.8 64.6 60.2 61.8 65.8 62.2 236 236 204 201 231 214 191 676 636 23 22 16 17 16 16 13 61 45 1,443 1,404 1,360 1,342 1,334 1,324 1,310 1,406 1,324 87.1 87.3 87.0 87.4 87.8 87.3 87.6 87.1 87.6 3.4 10.4 19.3 3.6 3.5 (8.6) (13.2) 10.4 (5.9) 15.0 8.3 1.4 0.7 3.3 9.5 15.9 8.4 9.1 552$ 409$ 356$ 90$ 105$ 106$ 87$ 1,317$ 298$ 442$ 379$ 384$ 97$ 99$ 99$ 101$ 1,205$ 299$ (69)$ (14)$ 6$ 7$ 26$ (21)$ 14$ (77)$ 19$ 115.6 103.7 98.4 92.8 73.7 121.2 86.1 106.4 93.6 91.0 84.7 90.6 76.3 68.7 68.7 75.2 88.9 70.9 28 27 22 9 9 8 8 77 25 (1) (2) Combined ratio Underlying combined ratio * (2) New issued application (in thousands) Encompass brand has been combined into National General beginning in the first quarter of 2021 and results prior to 2021 reflect Encompass brand results only. Excludes 4.1 points, 4.8 points, 1.0 points and 3.3 points in the third quarter, second quarter, first quarter and first nine months of 2021, respectively, related to the effect of amortization of purchased intangibles. Gross claim frequency (%) Paid claim severity (%) National General (1) Net premiums earned Underwriting income (loss) Premiums written New issued applications (in thousands) Agency channel Direct channel Average premium - gross written ($) Renewal ratio (%) Net premiums earned Underwriting income (loss) Premiums written Combined ratio Underlying combined ratio * Allstate brand Nine months ended Underlying expense ratio * Combined ratio Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Effect of amortization of purchased intangibles Effect of catastrophe losses Effect of prior year non-catastrophe reserve reestimates Underlying loss ratio * Expense ratio Effect of amortization of purchased intangibles Net premiums earned Premiums written Loss ratio ($ in millions, except ratios) Allstate Protection Underlying combined ratio * New issued applications (in thousands) The Allstate Corporation Homeowners Profitability Measures Underwriting income (loss) Operating ratios and reconciliations to underlying ratios Three months ended The Allstate Corporation 3Q21 Supplement 9

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 651$ 692$ 583$ 559$ 485$ 467$ 379$ 1,926$ 1,331$ 456$ 435$ 411$ 395$ 384$ 360$ 354$ 1,302$ 1,098$ 85 88 90 53 52 51 52 263 155 46 46 41 38 36 35 38 133 109 10 12 10 11 12 11 10 32 33 (122) (109) (103) (102) (107) (85) (92) (334) (284) (206) (194) (181) (176) (169) (160) (153) (581) (482) (209) (203) (198) (167) (160) (163) (161) (610) (484) 1 (4) (9) (2) 2 (3) - (12) (1) (16) (15) (12) (12) (10) (8) (11) (43) (29) 45 56 49 38 40 38 37 150 115 7 7 8 8 7 6 7 22 20 (1) 4 9 2 (2) 3 - 12 1 16 15 12 12 10 8 11 43 29 67$ 82$ 78$ 60$ 55$ 55$ 55$ 227$ 165$ 439$ 467$ 388$ 385$ 300$ 310$ 221$ 1,294$ 831$ 295$ 279$ 260$ 248$ 236$ 219$ 206$ 834$ 661$ 311 295 275 263 251 232 219 881 702 (77) (70) (66) (69) (70) (56) (55) (213) (181) (109) (100) (91) (87) (83) (75) (70) (300) (228) (80) (70) (61) (61) (56) (57) (50) (211) (163) (2) (2) - - 3 - - (4) 3 (11) (11) (12) (14) (9) (9) (10) (34) (28) 32$ 42$ 45$ 32$ 36$ 35$ 34$ 119$ 105$ 129$ 130$ 123$ 121$ 121$ 118$ 117$ 382$ 356$ 7 10 8 7 7 8 7 25 22 64$ 60$ 59$ 58$ 59$ 53$ 60$ 183$ 172$ 1 2 4 4 4 2 2 7 8 62$ 64$ 64$ 26$ 25$ 26$ 30$ 190$ 81$ 1 1 2 (2) (3) (3) (3) 4 (9) 31$ 32$ 31$ 29$ 28$ 28$ 28$ 94$ 84$ 4 1 (10) (3) (4) (4) (3) (5) (11) (1) Net premiums earned Revenue ^ Adjusted net income is the GAAP segment measure. Adjusted net income Allstate Dealer Services Revenue Adjusted net income Allstate Roadside Revenue Adjusted net income Arity Revenue Adjusted net income (loss) Allstate Identity Protection Revenue Adjusted net income (loss) Other costs and expenses ^ Restructuring and related charges Income tax expense on operations Amortization of deferred policy acquisition costs Operating costs and expenses Restructuring and related charges Income tax expense on operations Adjusted net income (1) Claims and claims expense Amortization of deferred policy acquisition costs Depreciation Restructuring and related charges Income tax expense on operations Adjusted earnings before taxes, depreciation and restructuring * Allstate Protection Plans Net premiums written Net premiums earned Other revenue Intersegment insurance premiums and service fees Net investment income Claims and claims expense ($ in millions) Protection Services Net premiums written The Allstate Corporation Protection Services Segment Results Nine months endedThree months ended The Allstate Corporation 3Q21 Supplement 10

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 436$ 421$ 428$ 235$ 247$ 237$ 253$ 1,285$ 737$ 24 26 27 27 40 26 29 77 95 85 83 80 - - - - 248 - 18 19 19 20 18 20 20 56 58 (269) (244) (233) (124) (128) (123) (141) (746) (392) (8) (8) (9) (7) (8) (9) (9) (25) (26) (30) (32) (39) (38) (59) (35) (45) (101) (139) (206) (186) (190) (69) (68) (110) (1) (75) (582) (253) (8) (1) - - - (1) - (9) (1) (9) (16) (18) (10) (9) - (8) (43) (17) 33$ 62$ 65$ 34$ 33$ 5$ 24$ 160$ 62$ 58.5 % 54.6 % 51.2 % 47.3 % 44.6 % 46.8 % 50.0 % 54.8 % 47.1 % 251$ 255$ 263$ 262$ 287$ 263$ 282$ 769$ 832$ 90 87 83 - - - - 260 - 119 105 109 - - - - 333 - 460$ 447$ 455$ 262$ 287$ 263$ 282$ 1,362$ 832$ (1) Individual accident and health ^ Total Includes $41 million write-off of capitalized software costs associated with a billing system. Nine months ended Adjusted net income ^ Benefit ratio ^ Premiums and contract charges Employer voluntary benefits ^ Interest credited to contractholder funds Amortization of deferred policy acquisition costs Operating costs and expenses Restructuring and related charges Income tax expense on operations Premiums Net investment income Accident and health insurance policy benefits ($ in millions) Allstate Health and Benefits Group health ^ The Allstate Corporation Allstate Health and Benefits Segment Results and Other Statistics Contract charges Other revenue Three months ended The Allstate Corporation 3Q21 Supplement 11

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 1$ 2$ -$ -$ -$ -$ -$ 3$ -$ 26 12 6 10 12 11 14 44 37 (41) (28) (32) (37) (23) (25) (25) (101) (73) (1) - (10) (1) (11) - - (11) (11) (69) (91) (86) (80) (78) (79) (81) (246) (238) 19 23 26 23 16 20 21 68 57 (30) (30) (27) (26) (27) (26) (36) (87) (89) (95)$ (112)$ (123)$ (111)$ (111)$ (99)$ (107)$ (330)$ (317)$ The Allstate Corporation Corporate and Other Segment Results Preferred stock dividends Adjusted net loss ^ Nine months ended Net investment income Operating costs and expenses Restructuring and related charges Interest expense Income tax benefit on operations ($ in millions) Other revenue Three months ended The Allstate Corporation 3Q21 Supplement 12

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 39,989$ 42,825$ 40,594$ 42,565$ 43,683$ 42,034$ 38,447$ 39,989$ 43,683$ 3,807 3,059 3,154 3,168 2,977 2,638 2,331 3,807 2,977 752 786 902 746 788 805 766 752 788 7,578 7,073 6,367 4,563 4,284 4,093 4,154 7,578 4,284 6,428 5,516 6,017 6,807 3,145 4,140 4,580 6,428 3,145 3,286 3,311 3,042 1,691 1,860 1,949 1,841 3,286 1,860 61,840$ 62,570$ 60,076$ 59,540$ 56,737$ 55,659$ 52,119$ 61,840$ 56,737$ 279$ 290$ 301$ 314$ 314$ 306$ 298$ 870$ 918$ 24 13 14 29 18 21 10 51 49 9 12 10 9 8 8 9 31 25 438 651 378 309 123 (117) (77) 1,467 (71) 1 1 1 2 2 2 11 3 15 50 48 41 33 29 31 31 139 91 801 1,015 745 696 494 251 282 2,561 1,027 (37) (41) (37) (36) (30) (31) (36) (115) (97) 764$ 974$ 708$ 660$ 464$ 220$ 246$ 2,446$ 930$ 2.8 % 2.9 % 3.1 % 3.1 % 3.1 % 3.1 % 3.2 % 3.0 % 3.1 % 80$ 115$ 246$ 212$ 214$ 160$ 388$ 441$ 762$ (12) 12 2 (3) 7 1 (37) 2 (29) (9) 163 167 294 128 265 (591) 321 (198) 46 (3) 11 (13) (30) 14 78 54 62 105$ 287$ 426$ 490$ 319$ 440$ (162)$ 818$ 597$ 1.2 % 1.6 % 1.2 % 1.1 % 0.8 % 0.4 % 0.5 % 4.0 % 1.7 % (0.2) 0.7 (1.8) 1.0 0.8 3.9 (1.5) (1.3) 3.3 - 0.3 0.4 0.6 0.2 0.5 (1.1) 0.6 (0.4) 1.0 % 2.6 % (0.2) % 2.7 % 1.8 % 4.8 % (2.1) % 3.3 % 4.6 % 4.75 4.64 4.81 5.17 5.14 5.15 5.10 4.75 5.14 Valuation-interest bearing Valuation-equity investments Total Fixed income securities portfolio duration ^ (in years) Valuation and settlements of derivative instruments Total Total return on investment portfolio ^ Net investment income Credit losses Valuation of equity investments Investment Position and Results The Allstate Corporation As of or for the nine months ended Pre-tax yields on fixed income securities ^ Realized capital gains (losses), pre-tax by transaction type Sales Short-term Other Investment income, before expense Less: Investment expense Net investment income Net investment income Fixed income securities Equity securities Mortgage loans Limited partnership interests Mortgage loans, net Limited partnership interests ^ Short-term, at fair value Other investments, net Total ($ in millions) Investment position Fixed income securities, at fair value Equity securities ^ As of or for the three months ended The Allstate Corporation 3Q21 Supplement 13

 
Sept. 30, 2021 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sept. 30, 2020 June 30, 2020 March 31, 2020 Sept. 30, 2021 Sept. 30, 2020 49,386$ 51,367$ 49,422$ 50,975$ 48,581$ 48,062$ 44,762$ 49,386$ 48,581$ 3,455 2,676 2,787 2,884 2,732 2,395 2,095 3,455 2,732 486 317 298 257 215 180 162 486 215 53,327$ 54,360$ 52,507$ 54,116$ 51,528$ 50,637$ 47,019$ 53,327$ 51,528$ 6,589$ 6,327$ 5,702$ 3,965$ 3,689$ 3,491$ 3,608$ 6,589$ 3,689$ 1,924 1,883 1,867 1,459 1,520 1,531 1,492 1,924 1,520 8,513$ 8,210$ 7,569$ 5,424$ 5,209$ 5,022$ 5,100$ 8,513$ 5,209$ 319$ 330$ 331$ 339$ 339$ 331$ 336$ 980$ 1,006$ 17 17 15 28 19 20 24 49 63 17 9 9 4 1 2 1 35 4 353 356 355 371 359 353 361 1,064 1,073 (1) (1) (1) (1) (1) (1) (1) (3) (3) 352$ 355$ 354$ 370$ 358$ 352$ 360$ 1,061$ 1,070$ 2.7 % 2.7 % 2.8 % 2.9 % 2.9 % 2.9 % 3.1 % 2.8 % 3.0 % 400$ 552$ 330$ 277$ 134$ (110)$ (95)$ 1,282$ (71)$ 48 107 60 48 1 8 16 215 25 448 659 390 325 135 (102) (79) 1,497 (46) (11) (10) (12) (11) (6) (8) (7) (33) (21) 437$ 649$ 378$ 314$ 129$ (110)$ (86)$ 1,464$ (67)$ 21.0 % 33.0 % 20.7 % 23.7 % 10.0 % (8.7) % (6.7) % 24.9 % (1.8) % 0.3 % 1.7 % (1.1) % 2.3 % 1.8 % 5.5 % (2.2) % 0.9 % 5.2 % 5.7 8.6 6.3 6.8 2.3 (2.3) (1.2) 20.6 (1.1) 12.4 % 12.1 % 11.7 % 11.5 % 11.5 % 11.3 % 12.1 % 13.2 12.1 10.8 9.6 8.5 8.6 10.2 12.4 10.7 8.5 8.0 7.2 7.5 10.4 31.4 27.3 11.1 4.4 (1.1) (2.2) 6.5 (1) Calculations are based on consolidated results including held for sale investments. Investment income, before expense Investee level expenses Income for yield calculation Pre-tax yield Total return on investments portfolio Market-based Performance-based Internal rate of return (1) ^ Performance-based 10 year 5 year 3 year 1 year Private equity Real estate Investment Position and Results by Strategy The Allstate Corporation As of or for the nine months ended Income for yield calculation Pre-tax yield Performance-based Interest-bearing investments Equity securities LP and other alternative investments Investment income, before expense Investee level expenses Real estate Total Investment income Market-based Equity securities ^ LP and other alternative investments ^ Total Performance-based ^ Private equity ($ in millions) Investment Position Market-based ^ Interest-bearing investments ^ As of or for the three months ended The Allstate Corporation 3Q21 Supplement 14

 
• Realized capital gains and losses except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income • Pension and other postretirement remeasurement gains and losses • Business combination expenses and the amortization or impairment of purchased intangibles • Income or loss from discontinued operations • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years • Related income tax expense or benefit of these items Underlying expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of amortization or impairment of purchased intangibles on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the amortization or impairment of purchased intangible assets. Amortization or Impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the expense ratio. The underlying expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business. A reconciliation of underlying expense ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures". Underlying combined ratio is a non-GAAP ratio, which is the sum of the underlying loss and underlying expense ratios. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedule "Property-Liability Results", "Auto Profitability Measures" and "Homeowners Profitability Measures". Definitions of Non-GAAP Measures We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. Adjusted net income is net income (loss) applicable to common shareholders, excluding: Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income. We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, pension and other postretirement remeasurement gains and losses, business combination expenses and the amortization or impairment of purchased intangibles, income or loss from discontinued operations and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Realized capital gains and losses, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Business combination expenses and income or loss from discontinued operations are excluded because they are non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of adjusted net income to net income (loss) applicable to common shareholders is provided in the schedule, "Contribution to Income". Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio, and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures". Adjusted underwriting expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of advertising expense, restructuring and related charges, amortization or impairment of purchased intangibles and Coronavirus related expenses on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the advertising expense, restructuring and related charges, amortization and impairment of purchased intangibles and Coronavirus related expenses. Advertising expense is excluded as it may vary significantly from period to period based on business decisions and competitive position. Restructuring and related charges are excluded because these items are not indicative of our business results or trends. Coronavirus related expenses are excluded because these items are related to programs offered during the peak of the pandemic that are no longer available. Amortization or impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price. These are not indicative of our business results or trends. A reduction in expenses enables investment flexibility that can drive growth. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the expense ratio. The adjusted underwriting expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business. Adjusted expense ratio is a non-GAAP ratio, which is computed as the combination of adjusted underwriting expense ratio and claims expense ratio excluding catastrophe expense. We believe it is useful for investors to evaluate this ratio which is linked to a long-term expense ratio improvement commitment through 2024. The most directly comparable GAAP measure is the expense ratio. The adjusted expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business. The Allstate Corporation 3Q21 Supplement 15

 
Definitions of Non-GAAP Measures (continued) Protection Services adjusted earnings before taxes, depreciation and restructuring, is a non-GAAP measure, which is computed as adjusted net income (loss), excluding taxes, depreciation and restructuring. Adjusted net income (loss) is the GAAP measure that is most directly comparable to adjusted earnings before taxes, depreciation and restructuring. We use adjusted earnings before taxes, depreciation and restructuring, as an important measure to evaluate Protection Services' results of operations. We believe that the measure provides investors with a valuable measure of Protection Services' ongoing performance because it reveals trends that may be obscured by the taxes,depreciation and restructuring expenses. Taxes, depreciation and restructuring are excluded because these are not directly attributable to the underlying operating performance of Protection Services' segment. Adjusted earnings before taxes, depreciation and restructuring highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of adjusted net income (loss) to assess our performance. We believe it is useful for investors to evaluate adjusted net income (loss), adjusted earnings before taxes, depreciation and restructuring, and their components separately and in the aggregate when reviewing and evaluating Protection Services segment’s performance. Adjusted earnings before taxes, depreciation and restructuring should not be considered a substitute for adjusted net income (loss) and does not reflect the overall profitability of our business. A reconciliation of adjusted net income (loss) to adjusted earnings before taxes, depreciation and restructuring, is provided in the schedule, "Protection Services Segment Results". Adjusted net income return on Allstate common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders’ equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders’ equity from return on Allstate common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders’ equity and return on Allstate common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Adjusted net income return on Allstate common shareholders’ equity should not be considered a substitute for return on Allstate common shareholders’ equity and does not reflect the overall profitability of our business. A reconciliation of return on Allstate common shareholders' equity and adjusted net income return on Allstate common shareholders' equity can be found in the schedule, "Return on Allstate Common Shareholders' Equity". Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAP measure. It is calculated by dividing Allstate common shareholders’ equity after excluding the impact of unrealized net capital gains and losses on fixed income securities and related DAC, DSI and life insurance reserves by total common shares outstanding plus dilutive potential common shares outstanding. We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common share to identify and analyze the change in net worth applicable to management efforts between periods. We believe the non-GAAP ratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business. A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share and Debt to Capital". The Allstate Corporation 3Q21 Supplement 16

 
Glossary Consolidated Operations Accident and health insurance premiums and contract charges are reported in the Allstate Health and Benefits segment and include employer voluntary benefits, group health and individual accident and health products. Adjusted net income is the GAAP segment measure used for the Protection Services, Allstate Health and Benefits, and Corporate and Other segments. Average Allstate common shareholders' equity and average adjusted Allstate common shareholders' equity are determined using a two-point average, with the beginning and ending Allstate common shareholders' equity and Allstate adjusted common shareholders' equity, respectively, for the twelve-month period as data points. Other revenue primarily represents fees collected from policyholders relating to premium installment payments, commissions on sales of non-proprietary products, sales of identity protection services, fee-based services and other revenue transactions. Property and casualty insurance premiums are reported in the Allstate Protection and Protection Services segments and include auto, homeowners, other personal lines and commercial lines insurance products, as well as consumer product protection plans, roadside assistance and finance and insurance products. Property-Liability Average premium - gross written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, which is generally 6 months for auto and 12 months for homeowners. Claims expense ratio excluding catastrophe expense: Incurred loss adjustment expenses, net of reinsurance, excluding expenses related to catastrophes. These expenses are embedded within the loss ratio. Expense ratio: Other revenue is deducted from other costs and expenses in the expense ratio calculation. Gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. It includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in gross claim frequency is calculated as the amount of increase or decrease in the gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year gross claim frequency. New issued applications: Item counts of automobiles or homeowners insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate Protection brand. Allstate brand includes automobiles added by existing customers when they exceed the number allowed (currently 10) on a policy. Other business lines primarily represent commissions earned and other costs and expenses for Ivantage and non-proprietary life and annuity products. Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period. The percent change in paid claim severity is calculated as the amount of increase or decrease in paid claim severity in the current period compared to the same period in the prior year; divided by the prior year paid claims severity. Renewal ratio: Renewal policy item counts issued during the period, based on contract effective dates, divided by the total policy item counts issued generally 6 months prior for auto or 12 months prior for homeowners. Allstate Health and Benefits Investments Duration measures the price sensitivity of assets and liabilities to changes in interest rates. Equity securities include investments in exchange traded and mutual funds whose underlying investments are fixed income securities. Interest-bearing investments comprise fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives. Internal rate of return is one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of return on the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments. Limited partnership interests: Income from equity method of accounting LP is generally recognized on a three-month delay due to the availability of the related financial statements from investees. LP and other investments comprise limited partnership interests and other alternative investments, including real estate investments classified as other investments. Market-based investments include publicly traded equity securities classified as limited partnerships. Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities. Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity and real estate. Pre-tax yields: Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the ending investment balances of the current and prior quarter. Year-to-date pre-tax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate and other investments is net of investee level expenses (asset level operating expenses reported in investment expense). Fixed income securities investment balances exclude unrealized capital gains and losses. Equity securities investment balances use cost in the calculation. Total return on investment portfolio is calculated from GAAP results, including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans, bank loans and agent loans divided by the average fair value balances. Employer voluntary benefits includes supplemental life and health products offered through workplace enrollment. Group health includes health products sold to employers for use by their employees. Individual accident and health includes short-term medical and supplemental products sold directly to individuals. Protection Services Other costs and expenses may include amortization of deferred policy acquisition costs, operating costs and expenses, and restructuring and related charges. Revenue may include net premiums earned, intersegment insurance premiums and service fees, other revenue, revenue earned from external customers and net investment income. Benefit ratio is contract benefits divided by premiums and contract charges. The Allstate Corporation 3Q21 Supplement 17