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The Allstate Corporation
Raymond James 2015 Institutional Investor Conference Steven Shebik: Chief Financial Officer March 3, 2015
®
1 Raymond James 2015 Institutional Investor Conference: March 3, 2015
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.
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 documents are located
on our website, allstateinvestors.com, under the “Quarterly Investor Info” link.
Forward-Looking Statements and Non-GAAP Financial Information
Allstate is an Attractive Investment Opportunity
Competitively differentiated strategy based on:
• Customer segmentation
• Analytics-based decision making
• Advanced technology
Attractive returns generated from low volatility auto insurance, repositioned homeowners business, other personal lines, life insurance, workplace benefits and investments
Policy 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
Nation’s largest publicly held personal lines insurer
Broad portfolio of growth opportunities
• Three strong Property-Liability brands
• Business to Business platform
• Broad-based investment capabilities
Serve 16 million households
Over 35,000 Allstate exclusive agents, financial specialists and licensed sales producers
Raymond James 2015 Institutional Investor Conference: March 3, 2015 2
Brand
Neutral
Self-
Serve
Local Advice
and Assistance
Brand
Sensitive
Comprehensive Strategy to Provide Differentiated Customer Value Propositions to Unique Consumer Segments
Raymond James 2015 Institutional Investor Conference: March 3, 2015 3
Allstate Agencies as Trusted Advisors
Broad product portfolio across segments
Best value
Strategy Based On: Segmentation, Analytics and Advanced Technology
Segmentation
Sophisticated pricing expertise
Effective and efficient claims settlements
Enterprise risk management
Analytics
Infrastructure simplification
Telematics - connected car
Enterprise digitization
Advanced Technology
Market size: $81B Encompass share: 2%
Market size: < $1B Answer Financial share: ~50%
Market size: $55B Esurance share: 2%
Market size: $121B Allstate share: 19%
Note: Market share statistics based on Allstate internal analysis, which is based on multiple sources including AM Best and public filings.
(1) Allstate Brand Auto results prior to 2011 and Allstate Brand Homeowners results prior to 2008 are not adjusted for DAC accounting change adopted in 2012.
Personal Lines Unit Growth With Attractive Returns
The Allstate Brand is driving profitable growth:
Allstate brand auto and homeowners policies growing over prior year
Allstate Brand is 92% of policies in force, and accounted for 27% and 78% of growth in 2013 and 2014, respectively
Profitability managed by micro-segmentation, broad-based analytics and local execution
Homeowners returns have significantly improved, as reflected by the underlying loss ratio in the low 60s
Organizational structure, business capabilities and accountability to react to cost trends
Allstate Brand Auto and Homeowners Combined Ratio1
Bank of America Merrill Lynch Insurance Conference: February 12, 2015 4
94.7
82.5
61.1
50
60
70
80
90
100
110
120
130
140
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Auto Homeowners Homeowners x-cat
Allstate Brand Auto & Homeowners Policy in Force Trends (Auto #M)
19.9
6.1
5
6
7
8
9
18.0
19.0
20.0
21.0
2005 2006 2007 2008 2009 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Auto Homeowners
2012 2013 2014
(Home #M)
(CR)
Raymond James 2015 Institutional Investor Conference: March 3, 2015
Esurance Expanding Product Suite and Geographic Footprint
5 (1) Esurance acquired Q4 2011
($ in Millions, except ratios) 2012 2013 2014
Net Written Premium $1,024 $1,310 $1,513
Growth rate NA(1) 27.9% 15.5%
Policies in Force 1,031 1,306 1,470
Growth rate NA(1) 26.7% 12.6%
Recorded Combined Ratio 119.9 117.5 117.7
Expense Ratio 42.7 39.0 40.9
Underlying Loss Ratio 75.6 77.6 76.6
Esurance(1) Results
Auto Product Launches Market Coverage 2014: 97.8% (added Alberta Canada in 2015)
WA
OR
MT
CO
AZ NM
WY
ND
SD
OK
KS
NE
TX
AR
LA
MS AL GA
FL
SC
NC
IL
MO
IA
WI MI
IN OH
KY
VA CA
ID
UT
NV
MN
TN
WV
MA
PA
NY
ME
RI
NJ
DE
VT
NH
CT
MD
DC
Footprint prior to acquisition
Additions since acquisition
No current presence
Homeowners Product Launches Market Coverage 2014: 29.0%
WA
OR
MT
CO
AZ NM
WY
ND
SD
OK
KS
NE
TX
AR
LA
MS AL GA
FL
SC
NC
IL
MO
IA
WI MI
IN OH
KY
VA CA
ID
UT
NV
MN
TN
WV
MA
PA
NY
ME
RI
NJ
DE
VT
NH
CT
MD
DC
Allstate Financial Becoming A More Strategically Integrated Part of the Allstate Brand
(1) Includes reserves for life-contingent contract benefits and contractholder funds classified as held for sale in 2013
Raymond James 2015 Institutional Investor Conference: March 3, 2015
Integration to Allstate Brand’s customer value proposition requires a comprehensive, multi-year effort
Balance sheet diminishing in size on smaller annuity business
Expense levels lower
Investment income very strong past four quarters, reflecting higher limited partnership income
Substantial capital distributed to parent
6
12.2 14.5 10.5
1.2 2.1 0.8
47.6 32.8
23.5
14.2
0.1
0.1
75.2
49.5
34.9
0
10
20
30
40
50
60
70
80
2007 2013 2014Life insurance Accident & health insuranceAnnuities Institutional products
($ B)
Reserves and Contractholder Funds as of Year-end 2014
(1) 7.1%
8.3% 8.0%
9.0% 9.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014
Operating Income Operating Income Return on Equity
($M)
Allstate Financial Operating Income and Return on Equity
(ROE)
Responding to External Change Through Proactive Risk and Capital Management
(1) Probable maximum loss for hurricanes and earthquakes as calculated by external risk models and after reinsurance recoveries, indexed to 2005 7
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Due in 3years or less
Due after 3through 5
years
Due after 5through 7
years
Due after 7through 10
years
Due after 10years
2011 2014
Investment Portfolio Positioning
0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Catastrophe Risk Management
20.5 20.6
1.7 1.0 2.1 5.1 3.1
$26.6 $27.5
0
5
10
15
20
25
30
2012 2014Common Stock & Equity Preferred Stock
Hybrid Debt Senior Debt / Other
($B)
Balance Sheet Restructuring
PML Index(1) 2005 – 2014 P-L Fixed Income by Scheduled Maturity Date (Index)
Raymond James 2015 Institutional Investor Conference: March 3, 2015
2002 2012 2004 2010 2008 2006
Selected Dramatic External Shocks
2013
Significant Hurricane
Losses Financial Crisis /
Economic Recession
Significant Catastrophe and Severe Weather Losses
Historically Low Interest Rate Environment
Allstate businesses that should not be solely valued on current earnings
Leveraging synergies across businesses to serve the small business market
• Provide innovative, broad solutions to protect the business, the business owner and the employees
• Equip agencies to support small businesses
Successful history of selectively pursuing adjacent acquisitions
• Allstate Benefits
• Partnership Marketing Group
• Esurance
Leveraging connected consumer relationships
• Improved, personalized pricing based on customer characteristics, behaviors, external information
• Improved customer experience through increased touch points and interactivity
• Utilization of data to improve the customer experience, enhance efficiency, or generate additional revenue
Considerations Beyond Current Earnings
Raymond James 2015 Institutional Investor Conference: March 3, 2015 8
Allstate is an Attractive Investment Opportunity with Significant Growth Potential
9
Competitively differentiated strategy based on:
• Customer segmentation
• Analytics-based decision making
• Advanced technology driving strategy
Attractive returns
Policy growth
Proactive risk and capital management
Long history of excellent returns to shareholders
33.8%
178.5% 168.9%
16.7%
93.9%
110.7%
17.0%
79.6%
111.0%
1/1/14 - 2/26/15 1/1/12 - 2/26/15 1/1/10 - 2/26/15
ALL
S&P P&C
S&P 500
Total Shareholder Return @ 2/26/15
(1) There were five dividend payments in 2012
(1)
2.9% 3.1% 1.5% 1.8%
6.3% 5.2% 7.9% 8.9%
9.2% 8.3%
9.4%
10.7%
2011 2012 2013 2014
Common DividendsCommon Share Repurchases
Total Cash Return per Common Share
Raymond James 2015 Institutional Investor Conference: March 3, 2015
Raymond James 2015 Institutional Investor Conference: March 3, 2015
11
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 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 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 good-will; (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” 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.
Raymond James 2015 Institutional Investor Conference: March 3, 2015