®
The Allstate Corporation
Bernstein 2015 Strategic Decisions Conference
Thomas J. Wilson: Chairman and Chief Executive Officer
May 28, 2015
Forward-Looking Statements and Non-GAAP Financial Information
This presentation contains forward-looking statements and information. Additional information on factors that
could cause results to differ materially from those projected in this presentation is available in the 2014 Form 10-K,
in our most recent earnings release, and at the end of these slides. These materials are available on our website,
allstateinvestors.com, under the “Quarterly Investor Info” link.
This presentation also contains some non-GAAP measures. You can find the reconciliation of those measures to
GAAP measures within our most recent earnings release and investor supplement. These materials are available
on our website, allstateinvestors.com, under the “Quarterly Investor Info” link.
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Bernstein 2015 Strategic Decisions Conference: May 28, 2015
Allstate is an Attractive Investment Opportunity
Celebrating 20 Years as an
Independent Public Company
 Competitively differentiated strategy based on:
• Customer segmentation
• Analytics-based decision making
• Advanced technology
 Attractive returns generated from insurance and
investments
 Auto, homeowners, other personal lines,
life insurance, and workplace benefits
Over 75,000 Allstate employees, exclusive agency owners,
financial specialists and licensed sales producers
Total shareholders’ equity has more than doubled
Total shareholder return of 625% vs. S&P 500 465%
More than $36 billion in cash returned
to common shareholders
 Investment grade fixed income and
performance-based equity portfolio
 Growth through focused customer value
propositions and expansion of product and
geographic footprint
 Proactive risk and capital management
 Long history of cash returns to shareholders
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Bernstein 2015 Strategic Decisions Conference: May 28, 2015
Deliver the Best Value to Each Customer Segment by Offering Unique Products and
Services at a Competitive Price
Brand
Neutral
Brand Neutral, Local Advice
Brand Neutral, Self-Directed
 Simplified… comprehensive protection
 Confidence… broad coverage
 Makes insurance easier
 Personal connection through my agent
 Option to purchase brands from multiple
companies
 Multiple products in addition to auto
 Easy and simple processes
Local Advice
and Assistance
SelfServe
Brand Sensitive, Local Advice
Brand Sensitive, Self-Directed
 Always treats me with respect… values my
relationship
 Agency knows me… smart about all the
risks in my life
 Best use my hard-earned money… protect
what matters most to me
 Helps me when bad things happen
…delivers in a way that fits my life and
helps me make smart choices
…informative and intuitive tools so I can
make smart choices
I am able to save time and money
I am able to recover quickly… access to
information, technology and people
Brand
Sensitive
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Bernstein 2015 Strategic Decisions Conference: May 28, 2015
Personal Lines Unit Growth With Attractive Returns
 The Allstate Brand is driving profitable growth
• Allstate Brand auto policy growth is broad-based
• Allstate brand homeowners beginning to grow
modestly at acceptable returns
 Auto profitability managed by microsegmentation, broad-based analytics and
local execution
Allstate Brand Auto & Homeowners Policy in Force Trends
(Home #M)
9
(Auto #M)
20.5
8
19.5
7
6
18.5
5
2007
2008
2009
2010
2011
Auto
2012
2013
2014
Q1 15
Homeowners
Allstate Brand Auto Combined Ratio1
(CR)
100
90
80
2007
(1) Allstate
2008
2009
2010
Brand Auto results prior to 2011 and Allstate Brand Homeowners results prior to 2008 are not adjusted for DAC accounting change adopted in 2012
Bernstein 2015 Strategic Decisions Conference: May 28, 2015
2011
2012
2013
2014
Q1 15
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Allstate Brand Homeowners a Competitive Advantage
 Homeowners underlying combined ratio
reduced to cover catastrophe losses
• Rate increases
• Underwriting sophistication
• Reduced size of business by 2 million policies from
its peak in 2006
• House & Home policy
Allstate Brand Homeowners Combined Ratio x-Catastrophes1
(CR)
80
75
70
65
60
55
2007
2008
2009
2010
2011
2012
2013
2014
Q1 15
Allstate Brand Homeowners Combined Ratio1
(CR)
140
130
120
110
100
90
80
70
60
50
2007
(1) Allstate
2008
2009
2010
Brand Auto results prior to 2011 and Allstate Brand Homeowners results prior to 2008 are not adjusted for DAC accounting change adopted in 2012
Bernstein 2015 Strategic Decisions Conference: May 28, 2015
2011
2012
2013
2014
Q1 15
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Create Profitable Growth Using a Local and National Focus
Allstate Brand
 14 local Market Operating Committees + Canada
• Develop and execute local strategies to drive
profitable growth
• Capabilities include sales, agency support, claims,
finance, field product, marketing, corporate
relations, and human resources
 Market Operating Committees focus on local
market dynamics within their states to manage
profitable growth
Allstate Brand Regional Offices
• Local market intelligence to identify growth and profit opportunities, and competitor strategies
• Approximately 650 rate filings across Allstate Brand product lines in 2014
• Support 130 local claims offices and 850+ drive-in claim locations with national catastrophe response
team and centralized process design, technology and analytics
• Technology and analytics enhances agency placement and early warning loss trends
• Work across regional boundaries and with corporate partners to identify, analyze and respond to
emerging trends and issues
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Bernstein 2015 Strategic Decisions Conference: May 28, 2015
Investing in Sustainable Value Creation
 Expanding Allstate Exclusive Agency platform
• Underpenetrated markets
• Leveraging technology and analytics to increase advisory capacity
 Growing
market share
• Geographic and product expansion
• Investing in customer acquisition to grow segment market share and build brand
 Expanding In Business Markets
• Innovative, broad solutions to protect the business, the business owner and the employees
230,000 local small business owners insured by Allstate
5 million dispatches in 2014
+
3 million policies through worksites
$2 billion of brokered business
 Building connected customer platform
• Expanding Allstate Drivewise® and Esurance DriveSense®
• Allstate Roadside Services innovation
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Bernstein 2015 Strategic Decisions Conference: May 28, 2015
Proactive Investment Approach Balances Risk and Return
Source of Return
Market Performance
Market-Based Active
• Largely investment-grade fixed income and
passive equity
• Predictable earnings profile
• Highly diversified and lower cost mix
Performance-Based Long-Term
• Long-term idiosyncratic investments
• Invest with best-in-class partners
• Actively managed strategies
• Takes advantage of short term market
opportunities
Performance–Based Opportunistic
• Leverage investment expertise and research
• Liquidity to distressed sellers / markets
More Trading Activity
Less Trading Activity
Market-Based Core (~85%)
Individual Asset Performance
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Bernstein 2015 Strategic Decisions Conference: May 28, 2015
Allstate is an Attractive Investment Opportunity with Significant Growth Potential
 Competitively differentiated strategy based on:
• Customer segmentation
Total Cash Return per Common Share
Common Dividends
Common Share Repurchases
• Analytics-based decision making
• Advanced technology
10.7%
9.2%
6.3%
8.3%
5.2%
 Attractive returns
 Profitable growth
9.4%
2.9%
3.1%
2011
2012 (1)
7.9%
8.9%
3.5%
3.1%
1.5%
1.8%
2013
2014
0.4%
Q1 2015
Total Shareholder Return Ending at 5/22/15
 Proactive risk and capital management
ALL
 Long history of excellent returns to shareholders
S&P P&C
S&P 500
149.1%
110.6%
117.2%
118.8%
77.4%
72.1%
17.9% 12.0% 14.6%
1 Year
(1)
There were five dividend payments in 2012
Bernstein 2015 Strategic Decisions Conference: May 28, 2015
3 Year
5 Year
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Forward-Looking Statements
Forward-Looking Statements
This presentation 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 forwardlooking 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 include
risks related to: (1) adverse changes in the nature and level of catastrophes and severe weather events; (2) impacts of catastrophe management
strategy on premium growth; (3) regulatory changes, including limitations on rate increases and requirements to underwrite business and participate in
loss sharing arrangements; (4) market convergence and regulatory changes on our risk segmentation and pricing; (5) the cyclical nature of the property
and casualty business; (6) unexpected increases in the severity or frequency of claims; (7) reestimates of reserves for claims; (8) adverse legal
determinations regarding discontinued product lines and other legal and regulatory actions; (9) changes in underwriting and actual experience; (10) the
influence of changes in market interest rates on spread-based products; (11) changes in estimates of profitability on interest-sensitive life products; (12)
reducing our concentration in spread-based business and exiting certain distribution channels; (13) changes in tax laws; (14) our ability to mitigate the
capital impact associated with statutory reserving requirements; (15) compliance and operational issues relating to dispositions and acquisitions of
businesses; (16) market risk and declines in credit quality relating to our investment portfolio; (17) our subjective determination of the fair value of our
fixed income and equity securities and the amount of realized capital losses recorded for impairments of our investments; (18) competition in the
insurance industry; (19) conditions in the global economy and capital markets; (20) losses from legal and regulatory actions; (21) restrictive regulation
and regulatory reforms; (22) the availability of reinsurance at current levels and prices; (23) credit risk of our reinsurers; (24) a downgrade in our
financial strength ratings; (25) the effect of adverse capital and credit market conditions; (26) failure in cyber or other information security systems;
(27) the impact of a large scale pandemic, the threat of terrorism or military action; (28) possible impairments in the value of goodwill; (29) changes in
accounting standards; (30) the realization of deferred tax assets; (31) restrictions on our subsidiaries’ ability to pay dividends; (32) restrictions under the
terms of certain of our securities on our ability to pay dividends or repurchase our stock; (33) changing climate conditions; (34) loss of key vendor
relationships or failure of a vendor to protect confidential information; and (35) failure to protect intellectual property. Additional information
concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our
most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation
to update or revise any forward-looking statement.
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Bernstein 2015 Strategic Decisions Conference: May 28, 2015