The Allstate Corporation (ALL) The 44th Annual William Blair Growth Stock Conference summary

Strategic transformation and growth initiatives

• Focused on increasing market share in personal property liability and expanding customer protection offerings, including warranties, health, benefits, identity protection, roadside, and dealer services.

• Implemented a four-part plan to restore auto insurance profitability: raised prices by over 32% in two years, reduced expenses, paused unprofitable growth, and improved claims effectiveness.

• Launched transformative growth by cutting expenses, redesigning products to be affordable, simple, and connected, and expanding distribution through agents, direct, and independent channels.

• Acquired National General to strengthen the independent agent channel, doubling its size and targeting further growth in homeowners and standard risks, and expanded National General operations.

• Enhanced the brand business model and expanded product offerings and cross-selling to support agent viability and customer value.

Technology and digital innovation

• Built a proprietary product platform using APIs, enabling faster product development and flexible technology deployment.

• Leveraged machine learning, augmented intelligence, and telematics to personalize product offerings, optimize marketing, and enhance claims processing.

• Developed significant telematics capabilities, including a mobile collection app, pay-per-mile insurance, and Arity, which supports ~40 million connected drivers and generated over $130M in 2023 revenue.

• Holds 130+ patents, collected over 1.5 trillion miles of driving data, and provides driving scores for insurers in 49 states and DC.

• Introduced QuickFoto Claim for rapid claims resolution, increasing adjuster productivity and customer satisfaction.

Financial management and market outlook

• Adjusted investment portfolio strategy by reducing equities and extending duration to optimize risk-adjusted returns as market conditions changed.

• Achieved significant growth in acquired businesses, such as SquareTrade, which expanded from $300 million to $3 billion in premium since 2017.

• Maintained pricing power in auto and home insurance, with industry-wide price increases supported by consumer willingness to pay and broad market trends.

• Emphasized the importance of monitoring the gap between loss cost increases and pricing to assess future pricing power and profitability.

• Projected continued growth in underwriting income as premium growth outpaces loss cost increases, supporting a positive industry outlook.