On this page of StockholderLetter.com we present the latest annual shareholder letter from ALLSTATE CORP — ticker symbol ALL. Reading current and past ALL letters to shareholders can bring important insights into the investment thesis.
Allstate  
Notice of 2024 Annual
Meeting and Proxy Statement
2023 Annual Report
Allstate exists to serve
customers, create opportunity
for our team, generate attractive
returns for investors, improve
communities, and make a
difference in the world.
Proxy
Statement
A
Our Shared Purpose
As the good hands...
We empower customers with protection to help them
achieve their hopes and dreams.
We provide affordable, simple and connected
protection solutions.
Our operating
standards
Focus on Customers by
anticipating and exceeding
service expectations at low
costs.
Be the Best at protecting
customers, developing talent
and running our businesses.
Be Bold with original ideas
using speed and conviction to
beat the competition.
Earn Attractive Returns by
providing customer value,
proactively accepting risk and
using analytics.
We create opportunity for our team,
economic value for our
shareholders and improve
communities.
L')
Our behaviors
Collaborate early and often
to develop and implement
comprehensive solutions
and share learnings.
Challenge Ideas to leverage
collective expertise, evaluate
multiple alternatives and
create the best path
forward.
Provide Clarity for expected
outcomes, decision authority
and accountability.
Provide Feedback that is
candid, actionable,
independent of
hierarchy and safe.
Our values
Integrity is non-negotiable.
Inclusive Diversity & Equity values and leverages unique
identities with equitable opportunity and rewards.
Collective Success is achieved through empathy and prioritizing
enterprise outcomes ahead of individuals.
Allstate    
Allstate Shareholder Letter
Dear Fellow Shareholders,
To succeed in a tumultuous and rapidly changing world, businesses must operate with clarity of purpose,
strategic vision, precision and speed. As you know, 2023 was a year of severe weather, inflation and volatile
investment markets. Allstate performed well in this environment by helping customers recover from
catastrophes, improving auto insurance profitability, proactively managing investments and enhancing the
business for sustainable growth. Looking ahead, your company is well-positioned for long-term success.
2023 Results
Our Shared Purpose has guided Allstate for 17 years by focusing on
the customer. This creates value for shareholders, opportunity for
the Allstate team and improves communities.
Living into Our Shared Purpose requires successfully balancing
competing priorities. Customers want affordable, simple and
connected protection, so that car accidents, hailstorms or broken
appliances do not sidetrack their lives. At the same time, Allstate
must provide good returns for shareholders, fulfilling opportunities
for employees and agents, and help communities thrive. Doing all of
these things require trade-offs and balance.
In 2023, auto insurance rates were raised for the Allstate and
National General brands by 16.4% and 12.8%, respectively, to offset
increased losses caused by rapid inflation. This obviously did not
make products more affordable, but it was necessary for us to earn
an adequate return for shareholders. To minimize the impact on
customers, operating expenses were reduced, requiring employees
and agents to adapt.
We successfully retained more customers than pricing models
predicted, since price increases were explained by agents, and nonagent service was improved. In total, however, the customer net
promoter score declined last year.
Total enterprise policies in force increased by 2.8% to 194 million
as growth in homeowners insurance and protection plans offset a
decline in auto insurance policies. Auto insurance policies declined
from 26.0 million to 25.3 million reflecting rate increases. National
General auto policies rose by 13.3% in 2023 due to increased volume
from independent agencies. Homeowners insurance policies were
up by 1.1% to 7.3 million despite rate increases of over 12% last
year, highlighting the strength of Allstate   s
Allstate's competitive position.
Protection plans grew by 4.7% as international expansion offset
slower growth through North American retailers.
Revenues reached $57.1 billion, 11.1% higher than 2022, reflecting
significant increases in average auto and home insurance premiums.
Auto insurance profitability improved throughout the year which
reduced the underwriting loss by $1.9 billion from 2022. Catastrophe
losses, however, were 81% higher ($2.5 billion), resulting in an
underwriting loss for 2023. Investment performance was strong with
a 6.7% total return and $2.5 billion of net investment income. Health
& Benefits and Protection Services businesses generated $348
million of Adjusted Net Income, which reduced the overall net loss
to $316 million for the year. Adjusted Net Income*, which excludes
some non-operating items, was $251 million for the year and the
return on adjusted equity* of 1.5% was below our target of 14-17%.



Revenue: $57.1 billion (+11.1%)
Policies in Force: 194 million (+2.8%)
Net loss: $316 million
Adjusted net income*: $251 million
For definitions of these terms, please see the definitions of non-GAAP
measures on pages 119-121 of our 2024 Proxy Statement.
4
The Allstate Corporation |I AllstateProxy.com
Allstate was ranked in the top 250 best-managed
companies for the seventh consecutive year by
The Wall Street Journal and Drucker Institute.
2023 Operating Priorities
Improve customer value
    The Enterprise Net Promoter Score, which measures
how likely customers are to recommend Allstate, finished
below the prior year, reflecting substantial price increases
necessary to offset higher loss costs.
Grow customer base
    Consolidated policies in force reached 194 million, a 2.8%
increase from prior year. Property-Liability policies in force
decreased by 2.0% compared to the prior year, as growth at
National General was more than offset by a decrease at the
Allstate brand. Protection Services policies in force increased
4.3%, primarily due to growth at Allstate Protection Plans.
Achieve target economic returns on capital
    Returns were below target, reflecting property-liability
combined ratio of 104.5. The auto insurance profit
improvement plan improved results throughout the
year but an 81% increase in catastrophe losses led to an
underwriting loss.
Proactively manage investments
    Net investment income of $2.5 billion in 2023 was
$75 million higher than prior year as higher marketbased investment income was partially offset by lower
performance-based results. Total return on the $66.7 billion
(as of 12/31/23) investment portfolio was 6.7% in 2023.
Proactive portfolio management repositioned the fixed
income portfolio into longer duration and higher-yielding
assets that increased income.
Execute Transformative Growth
    Allstate made substantial progress in advancing
Transformative Growth initiatives in 2023. National General is
building a strong competitive position in independent agent
distribution. Protection Plans is expanding outside the U.S.
2O24 Proxy Statement
2024
Allstate Shareholder Letter
Strategic Direction
Allstate   s
Allstate's strategy is to grow property-liability insurance market
share and expand protection provided to customers.
Increase
Personal
PropertyLiability
Market
Share
Allstate.
You're in good hands.
NATIONAL
GENER I
'A) Answer
twat),
Leveraging
Allstate brand,
customer base
and capabilities
Allstate.
Allstate.
Expand
Protection
Services
arity
Allstate.
Allstate
HEALTH 4 BENEFITS
Allstate.
ROADSIDE
Allstate is well-positioned for long-term growth with
a broad range of protection offerings, a great brand and
extensive distribution.
    Allstate empowers customers with protection to help them
achieve their hopes and dream. This includes insurance for
autos, homes, boats and personal property, protection plans
for electronics, appliances and furniture, identity protection,
roadside service and car warranties.
    The Allstate brand is widely recognized and trusted.
This is a significant asset in the highly competitive auto
and home insurance market and drives growth in other
protection products.
    Allstate has extensive distribution partnerships so consumers
can become Allstate customers almost everywhere. Insurance
products are sold through 26,000 licensed professionals in
Allstate agencies, at call centers, over the web, and from tens
of thousands of independent agents. Protection plans are
embedded into the flow of commerce in many of the largest
U.S. retailers and expanding internationally. Employee benefit
brokers and car dealers also offer Allstate products.
Successful strategies must also incorporate discontinuous
changes in the external environment. Four drivers of change
(artificial intelligence, climate change, mobility and connectivity)
will impact customers, shareholders and employees. Investments
are being made in each of these areas to ensure Allstate has the
capabilities to adapt to create the future, not just react to trends.
Allstate.
Progress was made in implementing the Transformative Growth
strategy to increase auto and home insurance market share.
Customer value will be increased with lower prices, funded through
expense reductions and sophisticated pricing, and new Affordable,
Simple, Connected protection products. A new Allstate brand
auto insurance offering is now available in seven states and will be
expanded in 2024.
Access to local Allstate agents is important to customer value
and this strength will be enhanced with new products, advanced
technology and greater centralized service. Allstate agents
embraced a focus on increasing new business, and productivity
increased, aside from the three growth-restricted states where we
are addressing profitability. Customer access was also expanded
through independent agents with a broader set of National
General products.
Progress has also been made in improving sophistication of
customer acquisition, building out a new technology ecosystem
and organizational transformation.
Expanding the protection provided to customers will also create
additional shareholder value. Protection Services revenues
increased by 9% over the prior year with increases in protection
plans, identity protection, car warranties and roadside services. A
sale of the Health & Benefits businesses is being pursued since
aligning this business with a set of complementary businesses will
create additional value.
Innovation on the move    
- The Allstate mobile app
was expanded to enable customers to find lower
gas prices, check the weather and reserve parking.
Customers use the app 2.5 million times per week!
Human Capital
Allstate has over 53,000 employees located around the world that
live into Our Shared Purpose. Eight-four percent of U.S. employees
have a favorable view of engagement at Allstate. Ninety percent of
U.S. employees feel connected to their immediate team members.
Turnover dropped dramatically in 2023.
Allstate is a purpose driven company that is
powered by purpose driven people.
High engagement results reflect being on a path to the future,
versus trying to return to the past. A distributed work model is a
core part of the employee value proposition.
The Allstate Corporation |I AllstateProxy.com
5
 • shareholder letter icon 4/2/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/10/2023 ALL Stockholder Letter
 • stockholder letter icon 4/1/2024 ALL Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon ALL Benford's Law Stock Score = 89


ALL Shareholder/Stockholder Letter Transcript:

Allstate  
Notice of 2024 Annual
Meeting and Proxy Statement
2023 Annual Report
Allstate exists to serve
customers, create opportunity
for our team, generate attractive
returns for investors, improve
communities, and make a
difference in the world.
Proxy
Statement
A


Our Shared Purpose
As the good hands...
We empower customers with protection to help them
achieve their hopes and dreams.
We provide affordable, simple and connected
protection solutions.
Our operating
standards
Focus on Customers by
anticipating and exceeding
service expectations at low
costs.
Be the Best at protecting
customers, developing talent
and running our businesses.
Be Bold with original ideas
using speed and conviction to
beat the competition.
Earn Attractive Returns by
providing customer value,
proactively accepting risk and
using analytics.
We create opportunity for our team,
economic value for our
shareholders and improve
communities.
L')
Our behaviors
Collaborate early and often
to develop and implement
comprehensive solutions
and share learnings.
Challenge Ideas to leverage
collective expertise, evaluate
multiple alternatives and
create the best path
forward.
Provide Clarity for expected
outcomes, decision authority
and accountability.
Provide Feedback that is
candid, actionable,
independent of
hierarchy and safe.
Our values
Integrity is non-negotiable.
Inclusive Diversity & Equity values and leverages unique
identities with equitable opportunity and rewards.
Collective Success is achieved through empathy and prioritizing
enterprise outcomes ahead of individuals.

Allstate    
Allstate Shareholder Letter
Dear Fellow Shareholders,
To succeed in a tumultuous and rapidly changing world, businesses must operate with clarity of purpose,
strategic vision, precision and speed. As you know, 2023 was a year of severe weather, inflation and volatile
investment markets. Allstate performed well in this environment by helping customers recover from
catastrophes, improving auto insurance profitability, proactively managing investments and enhancing the
business for sustainable growth. Looking ahead, your company is well-positioned for long-term success.
2023 Results
Our Shared Purpose has guided Allstate for 17 years by focusing on
the customer. This creates value for shareholders, opportunity for
the Allstate team and improves communities.
Living into Our Shared Purpose requires successfully balancing
competing priorities. Customers want affordable, simple and
connected protection, so that car accidents, hailstorms or broken
appliances do not sidetrack their lives. At the same time, Allstate
must provide good returns for shareholders, fulfilling opportunities
for employees and agents, and help communities thrive. Doing all of
these things require trade-offs and balance.
In 2023, auto insurance rates were raised for the Allstate and
National General brands by 16.4% and 12.8%, respectively, to offset
increased losses caused by rapid inflation. This obviously did not
make products more affordable, but it was necessary for us to earn
an adequate return for shareholders. To minimize the impact on
customers, operating expenses were reduced, requiring employees
and agents to adapt.
We successfully retained more customers than pricing models
predicted, since price increases were explained by agents, and nonagent service was improved. In total, however, the customer net
promoter score declined last year.
Total enterprise policies in force increased by 2.8% to 194 million
as growth in homeowners insurance and protection plans offset a
decline in auto insurance policies. Auto insurance policies declined
from 26.0 million to 25.3 million reflecting rate increases. National
General auto policies rose by 13.3% in 2023 due to increased volume
from independent agencies. Homeowners insurance policies were
up by 1.1% to 7.3 million despite rate increases of over 12% last
year, highlighting the strength of Allstate   s
Allstate's competitive position.
Protection plans grew by 4.7% as international expansion offset
slower growth through North American retailers.
Revenues reached $57.1 billion, 11.1% higher than 2022, reflecting
significant increases in average auto and home insurance premiums.
Auto insurance profitability improved throughout the year which
reduced the underwriting loss by $1.9 billion from 2022. Catastrophe
losses, however, were 81% higher ($2.5 billion), resulting in an
underwriting loss for 2023. Investment performance was strong with
a 6.7% total return and $2.5 billion of net investment income. Health
& Benefits and Protection Services businesses generated $348
million of Adjusted Net Income, which reduced the overall net loss
to $316 million for the year. Adjusted Net Income*, which excludes
some non-operating items, was $251 million for the year and the
return on adjusted equity* of 1.5% was below our target of 14-17%.



Revenue: $57.1 billion (+11.1%)
Policies in Force: 194 million (+2.8%)
Net loss: $316 million
Adjusted net income*: $251 million
For definitions of these terms, please see the definitions of non-GAAP
measures on pages 119-121 of our 2024 Proxy Statement.
4
The Allstate Corporation |I AllstateProxy.com
Allstate was ranked in the top 250 best-managed
companies for the seventh consecutive year by
The Wall Street Journal and Drucker Institute.
2023 Operating Priorities
Improve customer value
    The Enterprise Net Promoter Score, which measures
how likely customers are to recommend Allstate, finished
below the prior year, reflecting substantial price increases
necessary to offset higher loss costs.
Grow customer base
    Consolidated policies in force reached 194 million, a 2.8%
increase from prior year. Property-Liability policies in force
decreased by 2.0% compared to the prior year, as growth at
National General was more than offset by a decrease at the
Allstate brand. Protection Services policies in force increased
4.3%, primarily due to growth at Allstate Protection Plans.
Achieve target economic returns on capital
    Returns were below target, reflecting property-liability
combined ratio of 104.5. The auto insurance profit
improvement plan improved results throughout the
year but an 81% increase in catastrophe losses led to an
underwriting loss.
Proactively manage investments
    Net investment income of $2.5 billion in 2023 was
$75 million higher than prior year as higher marketbased investment income was partially offset by lower
performance-based results. Total return on the $66.7 billion
(as of 12/31/23) investment portfolio was 6.7% in 2023.
Proactive portfolio management repositioned the fixed
income portfolio into longer duration and higher-yielding
assets that increased income.
Execute Transformative Growth
    Allstate made substantial progress in advancing
Transformative Growth initiatives in 2023. National General is
building a strong competitive position in independent agent
distribution. Protection Plans is expanding outside the U.S.

2O24 Proxy Statement
2024
Allstate Shareholder Letter
Strategic Direction
Allstate   s
Allstate's strategy is to grow property-liability insurance market
share and expand protection provided to customers.
Increase
Personal
PropertyLiability
Market
Share
Allstate.
You're in good hands.
NATIONAL
GENER I
'A) Answer
twat),
Leveraging
Allstate brand,
customer base
and capabilities
Allstate.
Allstate.
Expand
Protection
Services
arity
Allstate.
Allstate
HEALTH 4 BENEFITS
Allstate.
ROADSIDE
Allstate is well-positioned for long-term growth with
a broad range of protection offerings, a great brand and
extensive distribution.
    Allstate empowers customers with protection to help them
achieve their hopes and dream. This includes insurance for
autos, homes, boats and personal property, protection plans
for electronics, appliances and furniture, identity protection,
roadside service and car warranties.
    The Allstate brand is widely recognized and trusted.
This is a significant asset in the highly competitive auto
and home insurance market and drives growth in other
protection products.
    Allstate has extensive distribution partnerships so consumers
can become Allstate customers almost everywhere. Insurance
products are sold through 26,000 licensed professionals in
Allstate agencies, at call centers, over the web, and from tens
of thousands of independent agents. Protection plans are
embedded into the flow of commerce in many of the largest
U.S. retailers and expanding internationally. Employee benefit
brokers and car dealers also offer Allstate products.
Successful strategies must also incorporate discontinuous
changes in the external environment. Four drivers of change
(artificial intelligence, climate change, mobility and connectivity)
will impact customers, shareholders and employees. Investments
are being made in each of these areas to ensure Allstate has the
capabilities to adapt to create the future, not just react to trends.
Allstate.
Progress was made in implementing the Transformative Growth
strategy to increase auto and home insurance market share.
Customer value will be increased with lower prices, funded through
expense reductions and sophisticated pricing, and new Affordable,
Simple, Connected protection products. A new Allstate brand
auto insurance offering is now available in seven states and will be
expanded in 2024.
Access to local Allstate agents is important to customer value
and this strength will be enhanced with new products, advanced
technology and greater centralized service. Allstate agents
embraced a focus on increasing new business, and productivity
increased, aside from the three growth-restricted states where we
are addressing profitability. Customer access was also expanded
through independent agents with a broader set of National
General products.
Progress has also been made in improving sophistication of
customer acquisition, building out a new technology ecosystem
and organizational transformation.
Expanding the protection provided to customers will also create
additional shareholder value. Protection Services revenues
increased by 9% over the prior year with increases in protection
plans, identity protection, car warranties and roadside services. A
sale of the Health & Benefits businesses is being pursued since
aligning this business with a set of complementary businesses will
create additional value.
Innovation on the move    
- The Allstate mobile app
was expanded to enable customers to find lower
gas prices, check the weather and reserve parking.
Customers use the app 2.5 million times per week!
Human Capital
Allstate has over 53,000 employees located around the world that
live into Our Shared Purpose. Eight-four percent of U.S. employees
have a favorable view of engagement at Allstate. Ninety percent of
U.S. employees feel connected to their immediate team members.
Turnover dropped dramatically in 2023.
Allstate is a purpose driven company that is
powered by purpose driven people.
High engagement results reflect being on a path to the future,
versus trying to return to the past. A distributed work model is a
core part of the employee value proposition.
The Allstate Corporation |I AllstateProxy.com
5



shareholder letter icon 4/2/2024 Letter Continued (Full PDF)
 

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