The Allstate Corporation (ALL) 8-KAllstate Reports Second Quarter 2024 Results

The Allstate Corporation Investor Supplement Second Quarter 2024 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. Exhibit 99.2

 

The Allstate Corporation Investor Supplement - Second Quarter 2024 Table of Contents Consolidated Operations Protection Services Condensed Consolidated Statements of Operations 1 Segment Results 11 Contribution to Income 2 Book Value per Common Share and Debt to Capital 3 Allstate Health and Benefits Return on Allstate Common Shareholders' Equity 4 Segment Results and Other Statistics 12 Policies in Force 5 Corporate and Other Property-Liability Segment Results 13 Results 6 Allstate Protection Investments Profitability Measures 7 Investment Position and Results 14 Impact of Net Rate Changes Implemented on Premiums Written 8 Investment Position and Results by Strategy 15 Auto Profitability Measures and Statistics 9 Homeowners Profitability Measures and Statistics 10 Definitions of Non-GAAP Measures 16,17 Glossary 18 Items included in the glossary are denoted with a caret (^) the first time used.

 

The Allstate Corporation Condensed Consolidated Statements of Operations (In millions, except per share data) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Revenues Property and casualty insurance premiums ^ $ 13,952 $ 13,512 $ 13,188 $ 12,839 $ 12,470 $ 12,173 $ 27,464 $ 24,643 Accident and health insurance premiums and contract charges ^ 474 478 467 463 453 463 952 916 Other revenue ^ 679 669 650 592 597 561 1,348 1,158 Net investment income 712 764 604 689 610 575 1,476 1,185 Net gains (losses) on investments and derivatives (103) (164) (77) (86) (151) 14 (267) (137) Total revenues 15,714 15,259 14,832 14,497 13,979 13,786 30,973 27,765 Costs and expenses Property and casualty insurance claims and claims expense 10,801 9,501 8,780 10,237 11,727 10,326 20,302 22,053 Accident, health and other policy benefits 291 296 286 262 258 265 587 523 Amortization of deferred policy acquisition costs 2,001 1,939 1,904 1,841 1,789 1,744 3,940 3,533 Operating costs and expenses 2,019 1,885 1,864 1,771 1,786 1,716 3,904 3,502 Pension and other postretirement remeasurement (gains) losses (9) (2) (47) 149 (40) (53) (11) (93) Restructuring and related charges 13 10 28 87 27 27 23 54 Amortization of purchased intangibles 70 69 83 83 82 81 139 163 Interest expense 98 97 107 88 98 86 195 184 Total costs and expenses 15,284 13,795 13,005 14,518 15,727 14,192 29,079 29,919 Income (loss) from operations before income tax expense 430 1,464 1,827 (21) (1,748) (406) 1,894 (2,154) Income tax expense (benefit) 83 266 340 (17) (373) (85) 349 (458) Net income (loss) 347 1,198 1,487 (4) (1,375) (321) 1,545 (1,696) Less: Net income (loss) attributable to noncontrolling interest 16 (20) (2) 1 (23) (1) (4) (24) Net income (loss) attributable to Allstate 331 1,218 1,489 (5) (1,352) (320) 1,549 (1,672) Less: Preferred stock dividends 30 29 29 36 37 26 59 63 Net income (loss) applicable to common shareholders $ 301 $ 1,189 $ 1,460 $ (41) $ (1,389) $ (346) $ 1,490 $ (1,735) Earnings per common share Net income (loss) applicable to common shareholders per common share - Basic $ 1.14 $ 4.51 $ 5.57 $ (0.16) $ (5.29) $ (1.31) $ 5.65 $ (6.59) Weighted average common shares - Basic 264.1 263.5 262.2 261.8 262.6 263.5 263.8 263.1 Net income (loss) applicable to common shareholders per common share - Diluted (1) $ 1.13 $ 4.46 $ 5.52 $ (0.16) $ (5.29) $ (1.31) $ 5.58 $ (6.59) Weighted average common shares - Diluted (1) 267.1 266.5 264.7 261.8 262.6 263.5 266.8 263.1 Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) — — — 1.5 1.7 2.6 — 2.1 Cash dividends declared per common share $ 0.92 $ 0.92 $ 0.89 $ 0.89 $ 0.89 $ 0.89 $ 1.84 $ 1.78 (1) In periods where a net loss is reported, weighted average shares for basic earnings per share is used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. The Allstate Corporation 2Q24 Supplement 1

 

The Allstate Corporation Contribution to Income (In millions, except per share data) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Contribution to income Net income (loss) applicable to common shareholders $ 301 $ 1,189 $ 1,460 $ (41) $ (1,389) $ (346) $ 1,490 $ (1,735) Net (gains) losses on investments and derivatives 103 164 77 86 151 (14) 267 137 Pension and other postretirement remeasurement (gains) losses (9) (2) (47) 149 (40) (53) (11) (93) Amortization of purchased intangibles 70 69 83 83 82 81 139 163 (Gain) loss on disposition (1) (4) (8) 5 8 (9) (5) (1) Non-recurring costs — — — — 90 (2) — — 90 (2) Income tax benefit (35) (49) (24) (68) (64) (1) (84) (65) Adjusted net income (loss) * $ 429 $ 1,367 $ 1,541 $ 214 $ (1,162) $ (342) $ 1,796 $ (1,504) Income per common share - Diluted Net income (loss) applicable to common shareholders (1) $ 1.13 $ 4.46 $ 5.52 $ (0.16) $ (5.29) $ (1.31) $ 5.58 $ (6.59) Net (gains) losses on investments and derivatives 0.38 0.62 0.29 0.33 0.58 (0.05) 1.00 0.52 Pension and other postretirement remeasurement (gains) losses (0.03) (0.01) (0.18) 0.57 (0.15) (0.20) (0.04) (0.35) Amortization of purchased intangibles 0.26 0.26 0.31 0.31 0.31 0.31 0.52 0.62 (Gain) loss on disposition — (0.02) (0.03) 0.02 0.03 (0.04) (0.02) (0.01) Non-recurring costs — — — — 0.34 (2) — — 0.34 (2) Income tax benefit (0.13) (0.18) (0.09) (0.26) (0.24) (0.01) (0.31) (0.25) Adjusted net income (loss) * (1) $ 1.61 $ 5.13 $ 5.82 $ 0.81 $ (4.42) $ (1.30) $ 6.73 $ (5.72) Weighted average common shares - Diluted (1) 267.1 266.5 264.7 263.3 262.6 263.5 266.8 263.1 Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) — — — 1.5 1.7 2.6 — 2.1 (1) In periods where a net loss or adjusted net loss is reported, weighted average shares for basic earnings per share is used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. (2) Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business. The Allstate Corporation 2Q24 Supplement 2

 

The Allstate Corporation Book Value per Common Share and Debt to Capital ($ in millions, except per share data) June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 Book value per common share Numerator: Allstate common shareholders' equity (1) $ 16,592 $ 16,638 $ 15,769 $ 12,592 $ 13,516 $ 15,524 Denominator: Common shares outstanding and dilutive potential common shares outstanding (2) 267.0 267.2 265.5 263.5 263.5 264.7 Book value per common share $ 62.14 $ 62.27 $ 59.39 $ 47.79 $ 51.29 $ 58.65 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities Numerator: Allstate common shareholders' equity (1) $ 16,592 $ 16,638 $ 15,769 $ 12,592 $ 13,516 $ 15,524 Less: Unrealized net capital gains and losses on fixed income securities (939) (813) (597) (2,509) (1,843) (1,575) Adjusted Allstate common shareholders' equity $ 17,531 $ 17,451 $ 16,366 $ 15,101 $ 15,359 $ 17,099 Denominator: Common shares outstanding and dilutive potential common shares outstanding (2) 267.0 267.2 265.5 263.5 263.5 264.7 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 65.66 $ 65.31 $ 61.64 $ 57.31 $ 58.29 $ 64.60 Total debt $ 8,082 $ 7,938 $ 7,942 $ 7,946 $ 7,949 $ 8,452 Total capital resources $ 26,675 $ 26,577 $ 25,712 $ 22,539 $ 23,466 $ 25,946 Ratio of debt to Allstate shareholders' equity 43.5 % 42.6 % 44.7 % 54.5 % 51.2 % 48.3 % Ratio of debt to capital resources 30.3 % 29.9 % 30.9 % 35.3 % 33.9 % 32.6 % (1) Excludes equity related to preferred stock of $2,001 million as of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023 and $1,970 million as of March 31, 2023. (2) Common shares outstanding were 264,030,015 and 262,496,775 as of June 30, 2024 and December 31, 2023, respectively. The Allstate Corporation 2Q24 Supplement 3

 

The Allstate Corporation Return on Allstate Common Shareholders' Equity ($ in millions) As of or for the twelve months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 Return on Allstate common shareholders' equity Numerator: Net income (loss) applicable to common shareholders $ 2,909 $ 1,219 $ (316) $ (2,079) $ (2,723) $ (2,374) Denominator: Beginning Allstate common shareholders' equity $ 13,516 $ 15,524 $ 15,518 $ 15,713 $ 18,094 $ 21,105 Ending Allstate common shareholders' equity (1) 16,592 16,638 15,769 12,592 13,516 15,524 Average Allstate common shareholders' equity ^ $ 15,054 $ 16,081 $ 15,644 $ 14,153 $ 15,805 $ 18,315 Return on Allstate common shareholders' equity 19.3 % 7.6 % (2.0) % (14.7) % (17.2) % (13.0) % Adjusted net income (loss) return on Allstate common shareholders' equity Numerator: Adjusted net income (loss) * $ 3,551 $ 1,960 $ 251 $ (1,641) $ (2,266) $ (1,311) Denominator: Beginning Allstate common shareholders' equity $ 13,516 $ 15,524 $ 15,518 $ 15,713 $ 18,094 $ 21,105 Less: Unrealized net capital gains and losses (1,845) (1,573) (2,255) (2,929) (2,140) (996) Adjusted beginning Allstate common shareholders' equity 15,361 17,097 17,773 18,642 20,234 22,101 Ending Allstate common shareholders' equity (1) 16,592 16,638 15,769 12,592 13,516 15,524 Less: Unrealized net capital gains and losses (938) (819) (604) (2,512) (1,845) (1,573) Adjusted ending Allstate common shareholders' equity 17,530 17,457 16,373 15,104 15,361 17,097 Average adjusted Allstate common shareholders' equity ^ $ 16,446 $ 17,277 $ 17,073 $ 16,873 $ 17,798 $ 19,599 Adjusted net income (loss) return on Allstate common shareholders' equity * 21.6 % 11.3 % 1.5 % (9.7) % (12.7) % (6.7) % (1) Excludes equity related to preferred stock of $2,001 million as of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023 and $1,970 million as of March 31, 2023. The Allstate Corporation 2Q24 Supplement 4

 

The Allstate Corporation Policies in Force June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 Policies in force statistics (in thousands) (1) Allstate Protection Auto 25,124 25,207 25,283 25,376 25,520 25,733 Homeowners 7,426 7,364 7,338 7,297 7,268 7,262 Other personal lines 4,871 4,849 4,863 4,884 4,890 4,913 Commercial lines 256 273 284 296 307 307 Total 37,677 37,693 37,768 37,853 37,985 38,215 Allstate brand Auto 19,877 20,038 20,326 20,546 20,821 21,142 Homeowners 6,743 6,681 6,652 6,627 6,614 6,621 National General Auto 5,247 5,169 4,957 4,830 4,699 4,591 Homeowners 683 683 686 670 654 641 Protection Services Allstate Protection Plans 151,172 148,086 145,292 140,648 138,172 136,591 Allstate Dealer Services 3,733 3,758 3,776 3,813 3,825 3,839 Allstate Roadside 604 565 553 554 545 536 Allstate Identity Protection 2,510 3,031 2,884 2,965 3,222 3,206 Total 158,019 155,440 152,505 147,980 145,764 144,172 Allstate Health and Benefits 4,181 4,193 4,143 4,256 4,273 4,339 Total policies in force 199,877 197,326 194,416 190,089 188,022 186,726 (1) Policy counts are based on items rather than customers. • A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. • PIF does not reflect banking relationships for our lender-placed insurance products to customers including fire, home and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. • Commercial lines PIF for shared economy agreements reflect contracts that cover multiple drivers as opposed to individual drivers. • Allstate Roadside reflects memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner. • Allstate Dealer Services reflects service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators ("TPAs") as the customer relationship is managed by the TPAs. • Allstate Protection Plans represents active consumer product protection plans. • Allstate Identity Protection reflects individual customer counts for identity protection products. • Allstate Health and Benefits reflects certificate counts as opposed to group counts. The Allstate Corporation 2Q24 Supplement 5

 

The Allstate Corporation Property-Liability Results ($ in millions, except ratios) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Premiums written $ 14,279 $ 13,183 $ 12,640 $ 13,304 $ 12,620 $ 11,783 $ 27,462 $ 24,403 (Increase) decrease in unearned premiums (921) (237) (42) (1,082) (753) (127) (1,158) (880) Other (19) (46) 3 48 54 (21) (65) 33 Premiums earned 13,339 12,900 12,601 12,270 11,921 11,635 26,239 23,556 Other revenue 441 430 410 393 389 353 871 742 Claims and claims expense (10,649) (9,349) (8,621) (10,077) (11,575) (10,180) (19,998) (21,755) Amortization of deferred policy acquisition costs (1,673) (1,608) (1,589) (1,533) (1,496) (1,452) (3,281) (2,948) Operating costs and expenses (1,537) (1,417) (1,394) (1,333) (1,249) (1,279) (2,954) (2,528) Restructuring and related charges (15) (7) (22) (74) (26) (21) (22) (47) Amortization of purchased intangibles (51) (51) (60) (60) (58) (57) (102) (115) Underwriting income (loss) $ (145) $ 898 $ 1,325 $ (414) $ (2,094) $ (1,001) $ 753 $ (3,095) Catastrophe losses $ (2,120) $ (731) $ (68) $ (1,181) $ (2,696) $ (1,691) $ (2,851) $ (4,387) Claims expense excluding catastrophe expense ^ (713) (696) (735) (707) (687) (670) (1,409) (1,357) Operating ratios and reconciliations to underlying ratios Loss ratio 79.8 72.4 68.4 82.2 97.1 87.5 76.2 92.3 Effect of catastrophe losses (15.9) (5.7) (0.5) (9.6) (22.6) (14.5) (10.9) (18.6) Effect of non-catastrophe prior year reserve reestimates 0.5 (0.1) (1.6) (1.4) (1.6) (0.3) 0.3 (0.9) Underlying loss ratio * 64.4 66.6 66.3 71.2 72.9 72.7 65.6 72.8 Expense ratio ^ 21.3 20.6 21.1 21.2 20.5 21.1 20.9 20.8 Effect of amortization of purchased intangibles (0.4) (0.3) (0.5) (0.5) (0.5) (0.5) (0.4) (0.5) Underlying expense ratio * 20.9 20.3 20.6 20.7 20.0 20.6 20.5 20.3 Effect of advertising expense (3.0) (2.2) (1.5) (1.4) (0.9) (1.3) (2.6) (1.2) Effect of restructuring and related charges (0.1) (0.1) (0.2) (0.6) (0.2) (0.2) (0.1) (0.2) Adjusted underwriting expense ratio * 17.8 18.0 18.9 18.7 18.9 19.1 17.8 18.9 Claims expense ratio excluding catastrophe expense ^ 5.3 5.4 5.8 5.8 5.8 5.8 5.4 5.8 Adjusted expense ratio * 23.1 23.4 24.7 24.5 24.7 24.9 23.2 24.7 Combined ratio 101.1 93.0 89.5 103.4 117.6 108.6 97.1 113.1 Effect of catastrophe losses (15.9) (5.7) (0.5) (9.6) (22.6) (14.5) (10.9) (18.6) Effect of non-catastrophe prior year reserve reestimates 0.5 (0.1) (1.6) (1.4) (1.6) (0.3) 0.3 (0.9) Effect of amortization of purchased intangibles (0.4) (0.3) (0.5) (0.5) (0.5) (0.5) (0.4) (0.5) Underlying combined ratio * 85.3 86.9 86.9 91.9 92.9 93.3 86.1 93.1 Effect of Run-off Property-Liability on combined ratio — — 0.1 0.7 0.1 — — — (1) Underwriting income (loss) Allstate brand $ (189) $ 790 $ 1,326 $ (168) $ (1,847) $ (972) $ 601 $ (2,819) National General 43 110 3 (167) (248) (28) 153 (276) Answer Financial 4 3 2 4 3 2 7 5 Total underwriting income (loss) for Allstate Protection (142) 903 1,331 (331) (2,092) (998) 761 (3,090) Run-off Property-Liability (3) (5) (6) (83) (2) (3) (8) (5) Total underwriting income (loss) for Property-Liability $ (145) $ 898 $ 1,325 $ (414) $ (2,094) $ (1,001) $ 753 $ (3,095) Other financial information Net investment income $ 643 $ 702 $ 538 $ 627 $ 544 $ 509 $ 1,345 $ 1,053 Income tax (expense) benefit on operations (113) (308) (343) (43) 320 91 (421) 411 Net income (loss) attributable to noncontrolling interest, after-tax 16 (20) (2) 2 (23) (1) (4) (24) Amortization of purchased intangibles (51) (51) (60) (60) (58) (57) (102) (115) The Allstate Corporation 2Q24 Supplement 6

 

The Allstate Corporation Allstate Protection Profitability Measures ($ in millions, except ratios) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Premiums written Auto $ 9,284 $ 9,357 $ 8,570 $ 8,770 $ 8,269 $ 8,349 $ 18,641 $ 16,618 Homeowners 3,845 2,874 3,144 3,525 3,381 2,534 6,719 5,915 Other personal lines 845 660 620 676 675 548 1,505 1,223 Commercial lines 150 157 153 140 200 227 307 427 Other business lines ^ 155 135 153 193 95 125 290 220 Total $ 14,279 $ 13,183 $ 12,640 $ 13,304 $ 12,620 $ 11,783 $ 27,462 $ 24,403 Net premiums earned Auto $ 9,079 $ 8,778 $ 8,566 $ 8,345 $ 8,121 $ 7,908 $ 17,857 $ 16,029 Homeowners 3,255 3,154 3,077 2,969 2,883 2,810 6,409 5,693 Other personal lines 701 659 630 608 587 562 1,360 1,149 Commercial lines 158 169 183 194 202 232 327 434 Other business lines 146 140 145 154 128 123 286 251 Total $ 13,339 $ 12,900 $ 12,601 $ 12,270 $ 11,921 $ 11,635 $ 26,239 $ 23,556 Underwriting income (loss) Auto $ 370 $ 351 $ 93 $ (178) $ (678) $ (346) $ 721 $ (1,024) Homeowners (375) 564 1,169 (131) (1,307) (534) 189 (1,841) Other personal lines (55) 7 114 6 (70) (89) (48) (159) Commercial lines (138) (70) (84) (60) (61) (60) (208) (121) Other business lines 52 48 37 28 21 29 100 50 Answer Financial 4 3 2 4 3 2 7 5 Total $ (142) $ 903 $ 1,331 $ (331) $ (2,092) $ (998) $ 761 $ (3,090) Claims expense excluding catastrophe expense $ 711 $ 695 $ 733 $ 703 $ 685 $ 668 $ 1,406 $ 1,353 Operating ratios and reconciliations to underlying ratios Loss ratio 79.8 72.4 68.3 81.5 97.0 87.5 76.2 92.3 Effect of catastrophe losses (15.9) (5.7) (0.5) (9.6) (22.6) (14.5) (10.9) (18.6) Effect of non-catastrophe prior year reserve reestimates 0.5 (0.1) (1.5) (0.7) (1.5) (0.3) 0.3 (0.9) Underlying loss ratio * 64.4 66.6 66.3 71.2 72.9 72.7 65.6 72.8 Expense ratio 21.3 20.6 21.1 21.2 20.5 21.1 20.9 20.8 Effect of amortization of purchased intangibles (0.4) (0.3) (0.5) (0.5) (0.5) (0.5) (0.4) (0.5) Underlying expense ratio * 20.9 20.3 20.6 20.7 20.0 20.6 20.5 20.3 Effect of advertising expense (3.0) (2.2) (1.5) (1.4) (0.9) (1.3) (2.6) (1.2) Effect of restructuring and related charges (0.1) (0.1) (0.2) (0.6) (0.2) (0.2) (0.1) (0.2) Adjusted underwriting expense ratio * 17.8 18.0 18.9 18.7 18.9 19.1 17.8 18.9 Combined ratio 101.1 93.0 89.4 102.7 117.5 108.6 97.1 113.1 Underlying combined ratio * 85.3 86.9 86.9 91.9 92.9 93.3 86.1 93.1 Claims expense ratio excluding catastrophe expense 5.3 5.4 5.8 5.7 5.7 5.7 5.4 5.7 The Allstate Corporation 2Q24 Supplement 7

 

The Allstate Corporation Allstate Protection Impact of Net Rate Changes Implemented on Premiums Written Three months ended June 30, 2024 Three months ended March 31, 2024 Number of locations (1) Total brand (%) (2) (3) Location specific (%) (4) Number of locations Total brand (%) (3) Location specific (%) Allstate brand Auto 21 1.0 5.7 27 2.4 8.4 Homeowners (5) 12 1.1 9.9 15 3.4 11.7 National General Auto 27 2.0 11.2 27 4.1 9.6 Homeowners (5) 12 2.3 14.6 12 1.6 14.0 Three months ended December 31, 2023 Three months ended September 30, 2023 Number of locations Total brand (%) (3) Location specific (%) Number of locations Total brand (%) (3) Location specific (%) Allstate brand Auto 33 6.9 13.5 25 2.0 5.9 Homeowners (5) 20 1.8 9.0 12 2.1 6.5 National General Auto 39 4.0 10.2 33 3.3 6.2 Homeowners (5) 17 4.5 18.5 11 1.2 17.6 (1) Refers to the number of U.S. states, the District of Columbia or Canadian provinces where rate changes have been implemented. Allstate brand operates in 50 states, the District of Columbia, and 5 Canadian provinces. National General operates in 50 states and the District of Columbia. (2) Represents the impact in the locations where rate changes were implemented during the period as a percentage of total brand prior year-end premiums written. (3) Total Allstate brand implemented auto insurance rate increases totaled $264 million in the second quarter of 2024, $685 million in the first quarter of 2024, $1.81 billion in the fourth quarter of 2023 and $517 million in the third quarter of 2023. (4) Represents the impact in the locations where rate changes were implemented during the period as a percentage of its respective total prior year-end premiums written in those same locations. (5) Excludes the impact to average premium from inflation in insured home replacement costs and other aging factor adjustments. The Allstate Corporation 2Q24 Supplement 8

 

The Allstate Corporation Auto Profitability Measures and Statistics ($ in millions, except ratios) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Allstate Protection Premiums written $ 9,284 $ 9,357 $ 8,570 $ 8,770 $ 8,269 $ 8,349 $ 18,641 $ 16,618 Net premiums earned 9,079 8,778 8,566 8,345 8,121 7,908 17,857 16,029 Underwriting income (loss) 370 351 93 (178) (678) (346) 721 (1,024) Operating ratios and reconciliations to underlying ratios Loss ratio 74.2 75.4 78.5 81.4 87.9 83.4 74.8 85.7 Effect of catastrophe losses (3.9) (1.2) (0.3) (2.6) (4.2) (1.2) (2.6) (2.7) Effect of non-catastrophe prior year reserve reestimates ("PYRR") 1.9 0.7 (1.7) (0.3) (1.4) (0.1) 1.3 (0.8) Underlying loss ratio * 72.2 74.9 76.5 78.5 82.3 82.1 73.5 82.2 Expense ratio 21.7 20.6 20.4 20.7 20.4 21.0 21.2 20.7 Effect of amortization of purchased intangibles (0.4) (0.4) (0.5) (0.4) (0.5) (0.5) (0.4) (0.5) Underlying expense ratio * 21.3 20.2 19.9 20.3 19.9 20.5 20.8 20.2 Combined ratio 95.9 96.0 98.9 102.1 108.3 104.4 96.0 106.4 Effect of catastrophe losses (3.9) (1.2) (0.3) (2.6) (4.2) (1.2) (2.6) (2.7) Effect of non-catastrophe PYRR 1.9 0.7 (1.7) (0.3) (1.4) (0.1) 1.3 (0.8) Effect of amortization of purchased intangibles ("APIA") (0.4) (0.4) (0.5) (0.4) (0.5) (0.5) (0.4) (0.5) Underlying combined ratio * 93.5 95.1 96.4 98.8 102.2 102.6 94.3 102.4 Annualized average earned premium ^ ($) 1,445 1,393 1,355 1,315 1,273 1,229 1,422 1,256 New issued applications (in thousands) ^ 1,728 1,670 1,398 1,505 1,478 1,534 3,398 3,012 Allstate brand Premiums written $ 7,488 $ 7,399 $ 7,041 $ 7,206 $ 6,821 $ 6,826 $ 14,887 $ 13,647 Net premiums earned 7,363 7,173 7,042 6,910 6,772 6,660 14,536 13,432 Underwriting income (loss) 231 261 124 (75) (546) (332) 492 (878) Loss ratio 74.2 75.5 77.5 80.3 87.7 84.3 74.8 86.0 Effect of catastrophe losses and non-catastrophe PYRR (1.8) (0.2) (1.9) (1.7) (4.5) (0.6) (1.0) (2.5) Underlying loss ratio * 72.4 75.3 75.6 78.6 83.2 83.7 73.8 83.5 Combined ratio 96.9 96.4 98.2 101.1 108.1 105.0 96.6 106.5 Effect of catastrophe losses, non-catastrophe PYRR and APIA (2.0) (0.4) (2.1) (1.9) (4.7) (0.8) (1.2) (2.7) Underlying combined ratio * 94.9 96.0 96.1 99.2 103.4 104.2 95.4 103.8 Average premium - gross written ^ ($) 841 823 794 772 737 726 832 732 Annualized average earned premium ^ ($) 1,482 1,432 1,386 1,345 1,301 1,260 1,463 1,290 Annualized average earned premium ^ (% change year-over-year) 13.9 13.7 14.6 14.6 14.3 13.9 13.4 15.0 Average underlying loss (incurred pure premium) * ^ ($) 1,073 1,078 1,048 1,057 1,082 1,055 1,080 1,077 Average underlying loss (incurred pure premium) * ^ (% change year-over-year) (0.8) 2.2 (2.8) 7.7 17.5 26.5 0.3 22.8 Average underlying loss (incurred pure premium) and expense* ^ ($) 1,406 1,375 1,332 1,335 1,345 1,313 1,396 1,339 Renewal ratio ^ (%) 85.7 86.0 85.4 84.9 85.5 85.7 85.9 85.6 National General Premiums written $ 1,796 $ 1,958 $ 1,529 $ 1,564 $ 1,448 $ 1,523 $ 3,754 $ 2,971 Net premiums earned 1,716 1,605 1,524 1,435 1,349 1,248 3,321 2,597 Underwriting income (loss) 139 90 (31) (103) (132) (14) 229 (146) Combined ratio 91.9 94.4 102.0 107.2 109.8 101.1 93.1 105.6 Effect of catastrophe losses, non-catastrophe PYRR and APIA (1) (4.4) (3.1) (4.2) (10.4) (13.7) (7.1) (3.7) (10.5) Underlying combined ratio * 87.5 91.3 97.8 96.8 96.1 94.0 89.4 95.1 (1) Includes 1.2 points for both the second quarter and first six months of 2024, and 2.1 points and 2.2 points in the second quarter and first six months of 2023, respectively, related to the effect of amortization of purchased intangibles. The Allstate Corporation 2Q24 Supplement 9

 

The Allstate Corporation Homeowners Profitability Measures and Statistics ($ in millions, except ratios) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Allstate Protection Premiums written $ 3,845 $ 2,874 $ 3,144 $ 3,525 $ 3,381 $ 2,534 $ 6,719 $ 5,915 Net premiums earned 3,255 3,154 3,077 2,969 2,883 2,810 6,409 5,693 Underwriting income (loss) (375) 564 1,169 (131) (1,307) (534) 189 (1,841) Operating ratios and reconciliations to underlying ratios Loss ratio 90.3 60.3 39.4 82.4 125.0 98.5 75.6 111.9 Effect of catastrophe losses (49.6) (17.6) (0.7) (29.6) (75.9) (51.6) (33.9) (63.9) Effect of non-catastrophe prior year reserve reestimates ("PYRR") 1.9 1.3 0.3 (1.5) (1.4) 0.5 1.6 (0.5) Underlying loss ratio * 42.6 44.0 39.0 51.3 47.7 47.4 43.3 47.5 Expense ratio 21.2 21.8 22.6 22.0 20.3 20.5 21.5 20.4 Effect of amortization of purchased intangibles (0.3) (0.3) (0.3) (0.4) (0.4) (0.3) (0.3) (0.3) Underlying expense ratio * 20.9 21.5 22.3 21.6 19.9 20.2 21.2 20.1 Combined ratio 111.5 82.1 62.0 104.4 145.3 119.0 97.1 132.3 Effect of catastrophe losses (49.6) (17.6) (0.7) (29.6) (75.9) (51.6) (33.9) (63.9) Effect of non-catastrophe PYRR 1.9 1.3 0.3 (1.5) (1.4) 0.5 1.6 (0.5) Effect of amortization of purchased intangibles ("APIA") (0.3) (0.3) (0.3) (0.4) (0.4) (0.3) (0.3) (0.3) Underlying combined ratio * 63.5 65.5 61.3 72.9 67.6 67.6 64.5 67.6 New issued applications (in thousands) 334 291 264 302 280 265 625 545 Allstate brand Premiums written $ 3,349 $ 2,517 $ 2,753 $ 3,118 $ 2,937 $ 2,210 $ 5,866 $ 5,147 Net premiums earned 2,861 2,767 2,695 2,613 2,537 2,488 5,628 5,025 Underwriting income (loss) (258) 568 1,148 (69) (1,195) (508) 310 (1,703) Combined ratio 109.0 79.5 57.4 102.6 147.1 120.4 94.5 133.9 Effect of catastrophe losses, non-catastrophe PYRR and APIA (47.1) (15.2) 1.3 (30.9) (79.9) (54.5) (31.4) (67.4) Underlying combined ratio * 61.9 64.3 58.7 71.7 67.2 65.9 63.1 66.5 Average premium - gross written ($) 1,993 1,912 1,872 1,851 1,800 1,706 1,957 1,758 Renewal ratio (%) 87.2 87.1 87.2 86.8 86.3 86.3 87.2 86.3 National General Premiums written $ 496 $ 357 $ 391 $ 407 $ 444 $ 324 $ 853 $ 768 Net premiums earned 394 387 382 356 346 322 781 668 Underwriting income (loss) (117) (4) 21 (62) (112) (26) (121) (138) Combined ratio 129.7 101.0 94.5 117.4 132.4 108.1 115.5 120.7 Effect of catastrophe losses, non-catastrophe PYRR and APIA (1) (54.8) (26.8) (14.9) (35.7) (61.9) (27.4) (41.0) (45.3) Underlying combined ratio * 74.9 74.2 79.6 81.7 70.5 80.7 74.5 75.4 (1) Includes 1.0 points and 0.9 points in the second quarter and first six months of 2024, respectively, and 1.8 points and 1.5 points in the second quarter and first six months of 2023, respectively, related to the effect of amortization of purchased intangibles. The Allstate Corporation 2Q24 Supplement 10

 

The Allstate Corporation Protection Services Segment Results ($ in millions) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Protection Services Net premiums written $ 676 $ 627 $ 728 $ 658 $ 658 $ 619 $ 1,303 $ 1,277 Premiums earned $ 613 $ 612 $ 587 $ 569 $ 549 $ 538 $ 1,225 $ 1,087 Other revenue 98 85 76 75 84 84 183 168 Intersegment insurance premiums and service fees 39 35 36 34 35 33 74 68 Net investment income 23 21 20 19 18 16 44 34 Claims and claims expense (157) (158) (160) (166) (153) (153) (315) (306) Amortization of deferred policy acquisition costs (296) (289) (279) (269) (259) (251) (585) (510) Operating costs and expenses (246) (234) (225) (225) (218) (221) (480) (439) Restructuring and related charges — (1) (2) (3) — (1) (1) (1) Income tax (expense) benefit on operations (19) (17) (49) (8) (15) (11) (36) (26) Less: net income (loss) attributable to noncontrolling interest — — — (1) — — — — Adjusted net income (1) 55 54 4 27 41 34 109 75 Depreciation 6 6 6 6 6 6 12 12 Restructuring and related charges — 1 2 3 — 1 1 1 Income tax expense (benefit) on operations 19 17 49 8 15 11 36 26 Adjusted earnings before taxes, depreciation and restructuring * $ 80 $ 78 $ 61 $ 44 $ 62 $ 52 $ 158 $ 114 Allstate Protection Plans Net premiums written $ 518 $ 470 $ 578 $ 487 $ 481 $ 439 $ 988 $ 920 Premiums earned $ 453 $ 439 $ 414 $ 392 $ 373 $ 361 $ 892 $ 734 Revenue ^ 483 464 439 416 399 385 947 784 Claims and claims expense (120) (114) (113) (116) (106) (105) (234) (211) Amortization of deferred policy acquisition costs (188) (180) (170) (159) (148) (141) (368) (289) Other costs and expenses ^ (122) (117) (113) (114) (103) (103) (239) (206) Restructuring and related charges 1 (1) — (1) — — — — Income tax (expense) benefit on operations (13) (12) (5) (7) (11) (8) (25) (19) Less: net income (loss) attributable to noncontrolling interest — — — (1) — — — — Adjusted net income $ 41 $ 40 $ 38 $ 20 $ 31 $ 28 $ 81 $ 59 Allstate Dealer Services Revenue $ 148 $ 146 $ 146 $ 146 $ 148 $ 148 $ 294 $ 296 Adjusted net income (loss) 6 6 (33) 5 6 7 12 13 Allstate Roadside Revenue $ 51 $ 66 $ 66 $ 69 $ 66 $ 64 $ 117 $ 130 Adjusted net income 8 11 7 7 6 4 19 10 Arity Revenue $ 52 $ 39 $ 32 $ 29 $ 35 $ 37 $ 91 $ 72 Adjusted net loss (2) (4) (5) (6) (3) (4) (6) (7) Allstate Identity Protection Revenue $ 39 $ 38 $ 36 $ 37 $ 38 $ 37 $ 77 $ 75 Adjusted net income (loss) 2 1 (3) 1 1 (1) 3 — (1) Adjusted net income is the GAAP segment measure. The Allstate Corporation 2Q24 Supplement 11

 

The Allstate Corporation Allstate Health and Benefits Segment Results and Other Statistics ($ in millions) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Allstate Health and Benefits Accident and health insurance premiums and contract charges $ 474 $ 478 $ 467 $ 463 $ 453 $ 463 $ 952 $ 916 Other revenue (1) 121 134 141 104 101 101 255 202 Net investment income 25 23 22 20 21 19 48 40 Accident, health and other policy benefits (291) (296) (286) (262) (258) (265) (587) (523) Amortization of deferred policy acquisition costs (32) (42) (36) (39) (34) (41) (74) (75) Operating costs and expenses (224) (225) (232) (197) (210) (203) (449) (413) Restructuring and related charges — (1) (1) (2) — (4) (1) (4) Income tax expense on operations (15) (15) (15) (18) (16) (14) (30) (30) Adjusted net income ^ $ 58 $ 56 $ 60 $ 69 $ 57 $ 56 $ 114 $ 113 Interest credited to contractholder funds (8) (9) (8) (8) (9) (8) (17) (17) Benefit ratio ^ 59.7 % 60.0 % 59.5 % 54.9 % 55.0 % 55.5 % 59.9 % 55.2 % Premiums and contract charges Employer voluntary benefits ^ $ 246 $ 248 $ 248 $ 253 $ 245 $ 255 $ 494 $ 500 Group health ^ 120 118 112 111 110 107 238 217 Individual health ^ 108 112 107 99 98 101 220 199 Total $ 474 $ 478 $ 467 $ 463 $ 453 $ 463 $ 952 $ 916 (1) Reflects commission revenue, administrative fees, agency fees and technology fees from the group health and individual health business. The Allstate Corporation 2Q24 Supplement 12

 

The Allstate Corporation Corporate and Other Segment Results ($ in millions) Three months ended Six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Other revenue $ 19 $ 20 $ 20 $ 20 $ 23 $ 23 $ 39 $ 46 Net investment income 21 18 24 23 27 31 39 58 Operating costs and expenses (47) (42) (53) (39) (45) (1) (48) (89) (93) (1) Restructuring and related charges 2 (1) (3) (8) (1) (1) 1 (2) Interest expense (98) (97) (107) (88) (98) (86) (195) (184) Income tax benefit on operations 29 25 43 18 20 18 54 38 Preferred stock dividends (30) (29) (29) (36) (37) (26) (59) (63) Adjusted net loss ^ $ (104) $ (106) $ (105) $ (110) $ (111) $ (89) $ (210) $ (200) (1) Excludes settlement costs for non-recurring litigation that is outside of the ordinary course of business. The Allstate Corporation 2Q24 Supplement 13

 

The Allstate Corporation Investment Position and Results ($ in millions) As of or for the three months ended As of or for the six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Investment position Fixed income securities, at fair value $ 52,576 $ 50,777 $ 48,865 $ 46,771 $ 45,550 $ 44,103 $ 52,576 $ 45,550 Equity securities ^ 2,216 2,383 2,411 2,419 2,290 2,174 2,216 2,290 Mortgage loans, net 815 815 822 830 823 781 815 823 Limited partnership interests ^ 8,730 8,562 8,380 8,363 8,150 7,971 8,730 8,150 Short-term, at fair value 5,288 4,318 5,144 3,368 5,137 6,722 5,288 5,137 Other investments, net 979 1,004 1,055 1,608 1,718 1,724 979 1,718 Total $ 70,604 $ 67,859 $ 66,677 $ 63,359 $ 63,668 $ 63,475 $ 70,604 $ 63,668 Net investment income Fixed income securities $ 571 $ 526 $ 492 $ 457 $ 422 $ 390 $ 1,097 $ 812 Equity securities 18 15 28 15 21 11 33 32 Mortgage loans 9 9 10 9 8 8 18 16 Limited partnership interests 103 199 53 190 122 134 302 256 Short-term investments 62 67 59 59 69 66 129 135 Other investments 25 21 48 41 39 41 46 80 Investment income, before expense 788 837 690 771 681 650 1,625 1,331 Investment expense (76) (73) (86) (82) (71) (75) (149) (146) Net investment income $ 712 $ 764 $ 604 $ 689 $ 610 $ 575 $ 1,476 $ 1,185 Pre-tax yields on fixed income securities ^ 4.3 % 4.1 % 4.0 % 3.7 % 3.6 % 3.4 % 4.2 % 3.5 % Net gains (losses) on investments and derivatives, pre-tax by transaction type Sales $ (90) $ (111) $ (120) $ (63) $ (130) $ (120) $ (201) $ (250) Credit losses (16) (115) (30) (20) (37) (12) (131) (49) Valuation change of equity investments 18 70 129 (34) 23 198 88 221 Valuation change and settlements of derivatives (15) (8) (56) 31 (7) (52) (23) (59) Total $ (103) $ (164) $ (77) $ (86) $ (151) $ 14 $ (267) $ (137) Total return on investment portfolio ^ Net investment income 1.0 % 1.1 % 0.9 % 1.1 % 1.0 % 0.9 % 2.1 % 1.9 % Valuation-interest bearing (0.3) (0.7) (1) 3.5 (1.5) (0.8) 1.1 (1.1) (1) 0.3 Valuation-equity investments — 0.1 0.2 — — 0.4 0.1 0.3 Total 0.7 % 0.5 % 4.6 % (0.4) % 0.2 % 2.4 % 1.1 % 2.5 % Fixed income securities portfolio duration ^ (in years) 4.9 4.8 4.7 4.5 4.4 4.0 Fixed income securities portfolio duration including interest rate derivative positions (in years) 5.0 4.9 4.8 4.6 4.4 4.0 Fixed income and short-term investments duration including interest rate derivative positions (in years) 4.6 4.6 4.3 4.3 3.9 3.5 (1) Includes (0.2%) impact related to the $123 million credit loss for the carrying value of the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”) in the first quarter and first six months of 2024. The Allstate Corporation 2Q24 Supplement 14

 

The Allstate Corporation Investment Position and Results by Strategy ($ in millions) As of or for the three months ended As of or for the six months ended June 30, 2024 March 31, 2024 Dec. 31, 2023 Sept. 30, 2023 June 30, 2023 March 31, 2023 June 30, 2024 June 30, 2023 Investment Position Market-based ^ Interest-bearing investments ^ $ 58,781 $ 56,035 $ 55,025 $ 51,661 $ 52,191 $ 52,337 $ 58,781 $ 52,191 Equity securities 1,539 1,722 1,768 1,986 1,850 1,765 1,539 1,850 LP and other alternative investments ^ 162 158 141 198 201 214 162 201 Total $ 60,482 $ 57,915 $ 56,934 $ 53,845 $ 54,242 $ 54,316 $ 60,482 $ 54,242 Performance-based ^ Private equity (1) $ 8,064 $ 7,891 $ 7,752 $ 7,551 $ 7,381 $ 7,168 $ 8,064 $ 7,381 Real estate 2,058 2,053 1,991 1,963 2,045 1,991 2,058 2,045 Total $ 10,122 $ 9,944 $ 9,743 $ 9,514 $ 9,426 $ 9,159 $ 10,122 $ 9,426 Investment income Market-based Interest-bearing investments $ 649 $ 609 $ 578 $ 546 $ 519 $ 481 $ 1,258 $ 1,000 Equity securities 16 13 25 15 16 14 29 30 LP and other alternative investments (2) 2 4 1 6 1 12 6 13 Income for yield calculation $ 667 $ 626 $ 604 $ 567 $ 536 $ 507 $ 1,293 $ 1,043 Pre-tax yield 4.4 % 4.3 % 4.2 % 4.0 % 3.8 % 3.6 % 4.4 % 3.7 % Performance-based Private equity $ 119 $ 196 $ 66 $ 131 $ 112 $ 105 $ 315 $ 217 Real estate 2 15 20 71 31 37 17 68 Investment income, before expense 121 211 86 202 143 142 332 285 Investee level expenses (14) (10) (26) (16) (16) (16) (24) (32) Income for yield calculation $ 107 $ 201 $ 60 $ 186 $ 127 $ 126 $ 308 $ 253 Pre-tax yield 4.3 % 8.2 % 2.5 % 7.9 % 5.5 % 5.5 % 6.2 % 5.5 % Total return on investment portfolio Market-based 0.7 % 0.3 % (3) 5.4 % (0.8) % 0.1 % 2.6 % 1.0 % (3) 2.7 % Performance-based 1.0 2.3 0.4 2.8 1.0 1.6 3.3 2.6 Internal rate of return ^ Performance-based 10 year 11.5 % 11.7 % 12.0 % 12.5 % 12.6 % 12.7 % 5 year 11.6 12.1 12.0 12.2 12.1 12.1 3 year 11.7 14.3 17.3 19.3 19.6 16.0 1 year 4.9 5.6 4.6 5.7 4.2 5.9 (1) Includes infrastructure investments of $1.20 billion as of June 30, 2024. (2) Net of any investee level expenses. (3) Includes (0.2%) impact related to the $123 million credit loss for the carrying value of the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”) in the first quarter and first six months of 2024. The Allstate Corporation 2Q24 Supplement 15

 

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 gains and losses on investments and derivatives • Pension and other postretirement remeasurement gains and losses • Amortization or impairment of purchased intangibles • Gain or loss on disposition • 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 net gains and losses on investments and derivatives, pension and other postretirement remeasurement gains and losses, amortization or impairment of purchased intangibles, gain or loss on disposition and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Net gains and losses on investments and derivatives, 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. Gain or loss on disposition is excluded because it is 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". 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". Average underlying loss (incurred pure premium) and average underlying loss (incurred pure premium) and expense per policy are calculated as the underlying loss ratio and the underlying combined ratio (non-GAAP ratios), respectively, multiplied by the annualized GAAP earned premium ("annualized average earned premium”). We believe that this measure is useful to investors, and it is used by management for the same reasons noted above for the underlying loss and underlying combined ratios. The components of the calculation are available on the "Auto Profitability Measures and Statistics" page. The Allstate Corporation 2Q24 Supplement 16

 

Definitions of Non-GAAP Measures (continued) 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 and 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 advertising expense, restructuring and related charges and amortization or impairment of purchased intangibles. 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. 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 the 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. 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". 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 (loss) 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 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 2Q24 Supplement 17