8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 20, 2022

THE ALLSTATE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-11840	36-3871531
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

 2775 Sanders Road, Northbrook, Illinois    60062

(Address of principal executive offices)    (Zip Code)

Registrant’s telephone number, including area code  (847) 402-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ALL	New York Stock Exchange Chicago Stock Exchange
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053	ALL.PR.B	New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G	ALL PR G	New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H	ALL PR H	New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I	ALL PR I	New York Stock Exchange

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

Emerging growth company ☐

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

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition

The Registrant’s press release dated July 20, 2022, announcing second quarter 2022 underwriting results, estimated catastrophe losses for June 2022 and second quarter 2022, implemented auto rates and prior year reserve reestimates and the Registrant’s implemented auto rate exhibit for June 2022 are posted on allstateinvestors.com and are attached hereto as Exhibit 99.1 and 99.2, respectively, which are incorporated herein by reference. These exhibits are furnished and not filed, pursuant to Instruction B.2 of Form 8-K.

Section 9 – Financial Statements and Exhibits

Item 9.01.                             Financial Statements and Exhibits.

(d)                             Exhibits

Exhibit No.	Description
99.1	The Registrant’s press release dated July 20, 2022
99.2	The Registrant’s implemented auto rate exhibit for June 2022
104	Cover Page Interactive Data File (formatted as inline XBRL).

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		THE ALLSTATE CORPORATION
		(Registrant)
		By:	/s/ Daniel G. Gordon
		Name:	Daniel G. Gordon
		Title:	Vice President, Assistant General
			Counsel and Assistant Secretary
Date:	July 20, 2022

3

EX-99.1

Exhibit 99.1

NEWS

FOR IMMEDIATE RELEASE

Contacts:

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

Allstate Announces Second Quarter 2022 Underwriting Results

Provides Catastrophe Losses, Prior Year Reserve Reestimates, Combined Ratios and

Implemented Auto Rates

NORTHBROOK, Ill., 7/20/2022 – The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of June totaled $356 million or $281 million, after-tax. June catastrophe losses included 10 events, primarily wind and hail in the Midwest, estimated at $315 million, plus unfavorable reserve reestimates for prior period events. Catastrophe losses for the second quarter totaled $1.11 billion, pre-tax.

Inflationary trends continue to adversely impact current and prior report year claim severity and loss reserve estimates. As a result, unfavorable non-catastrophe prior year reserve reestimates totaled $408 million in the second quarter. This included $275 million related to personal auto insurance, primarily from physical damage and bodily injury coverages. In addition, $91 million of additional reserves were recorded for commercial auto insurance, primarily from shared economy business written in states where coverage has been terminated.

Personal auto insurance results in the second quarter reflect persistent increases in loss costs across coverages:

•Increases in physical damage costs are geographically widespread and reflect higher part prices, labor rates and length of claim resolution.

•Increases in injury claim costs reflect more severe auto accidents, increased medical inflation, higher consumption of medical treatment and more claims with attorney representation.

•Claims reported in 2021 but settled in 2022 were subject to the rising vehicle values, parts prices and labor rates experienced during 2022, which contributed to the adverse loss reserve development.

As a result of elevated catastrophe losses and the inflationary impacts on severity, Allstate is also announcing estimated second quarter recorded and underlying combined ratios*:

	Three months ended June 30, 2022
	Combined ratio	Underlying combined ratio*
Property-Liability	107.9	93.4
Allstate Protection - Auto insurance	107.9	102.1
Allstate Protection - Homeowners insurance	106.9	70.3

_________

* Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the “Definitions of Non-GAAP Measures” section of this document.

Allstate continues to implement significant insurance rate increases given ongoing inflationary impacts on claim severities. In June, Allstate brand implemented rate increases for auto insurance averaged 10.7% across 8 locations, resulting in total Allstate brand insurance premium impact of 1.1%. Allstate brand rate increases averaging approximately 8.3% across 51 locations have been implemented since the beginning of the fourth quarter 2021. These rate increases are expected to raise annualized written premium by approximately 9.0%, or $2.17 billion. For further information, please visit the implemented auto rate exhibit section posted on allstateinvestors.com.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

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

# # # #

Definition of Non-GAAP Measure

We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measure. Our methods for calculating this measure may differ from those used by other companies and therefore comparability may be limited.

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

The following tables reconcilethe respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio.

Property-Liability	Three months ended June 30, 2022
Estimated Combined ratio	107.9
Effect of catastrophe losses	(10.2)
Effect of prior year non-catastrophe reserve reestimates	(3.8)
Effect of amortization of purchased intangibles	(0.5)
Estimated Underlying combined ratio*	93.4

Allstate Protection - Auto Insurance	Three months ended June 30, 2022
Estimated Combined ratio	107.9
Effect of catastrophe losses	(1.5)
Effect of prior year non-catastrophe reserve reestimates	(3.8)
Effect of amortization of purchased intangibles	(0.5)
Estimated Underlying combined ratio*	102.1

Allstate Protection - Homeowners Insurance	Three months ended June 30, 2022
Estimated Combined ratio	106.9
Effect of catastrophe losses	(34.3)
Effect of prior year non-catastrophe reserve reestimates	(1.7)
Effect of amortization of purchased intangibles	(0.6)
Estimated Underlying combined ratio*	70.3

# # # # #

EX-99.2

Exhibit 99.2 The Allstate Corporation Allstate Protection Impact of Net Rate Changes Implemented on Premiums Written For the month ended June 30, 2022 Three months ended June 30, 2022 Number of locations (1) Total brand (%) (2) (4) Location specific (%) (3) Number of locations (1) Total brand (%) (2) (4) Location specific (%) (3) Allstate brand Auto 8 1.1 10.7 30 2.5 8.7 National General Auto 11 0.5 2.4 19 2.7 6.0 Three months ended March 31, 2022 Three months ended December 31, 2021 Number of locations (1) Total brand (%) (2) (4) Location specific (%) (3) Number of locations (1) Total brand (%) (2) (4) Location specific (%) (3) Allstate brand Auto 28 3.6 9.3 25 2.9 7.1 National General Auto 24 1.9 4.6 22 2.4 5.7 (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) 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. (4) Allstate brand implemented auto insurance rate increases totaled $258 million and $601 million in the month and quarter to date ended June 30, 2022 after implementing $862 million and $702 million of rate increases in the first quarter of 2022 and fourth quarter of 2021, respectively.

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Document and Entity Information Document	Jul. 20, 2022
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 20, 2022
Entity Registrant Name	ALLSTATE CORP
Entity Incorporation, State or Country Code	DE
Entity File Number	1-11840
Entity Tax Identification Number	36-3871531
Entity Address, Address Line One	2775 Sanders Road
Entity Address, City or Town	Northbrook
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60062
City Area Code	847
Local Phone Number	402-5000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000899051
Common Stock | NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	NYSE
Common Stock | CHICAGO STOCK EXCHANGE, INC
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	CHX
Subordinated Debentures Due 2053 at 5.10 Percent
Document Information [Line Items]
Title of 12(b) Security	5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053
Trading Symbol	ALL.PR.B
Security Exchange Name	NYSE
Series G Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G
Trading Symbol	ALL PR G
Security Exchange Name	NYSE
Series H Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H
Trading Symbol	ALL PR H
Security Exchange Name	NYSE
Series I Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I
Trading Symbol	ALL PR I
Security Exchange Name	NYSE