Shelter-in-Place Payback expense

Condensed Consolidated Financial StatementsPart I. Financial InformationItem 1. Financial StatementsThe Allstate Corporation and SubsidiariesCondensed Consolidated Statements of Operations (unaudited)

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($ in millions, except per share data) |  | Three months endedSeptember 30, |  | Nine months ended September 30, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Revenues |  |   |  |   |  |   |  |   |
| Property and casualty insurance premiums |  | $ | 11,661  |  |  | $ | 10,615  |  |  | $ | 34,004  |  |  | $ | 31,366  |  |
| Accident and health insurance premiums and contract charges |  | 463  |  |  | 460  |  |  | 1,398  |  |  | 1,362  |  |
| Other revenue |  | 561  |  |  | 536  |  |  | 1,684  |  |  | 1,585  |  |
| Net investment income |  | 690  |  |  | 764  |  |  | 1,846  |  |  | 2,446  |  |
| Net gains (losses) on investments and derivatives |  | (167) |  |  | 105  |  |  | (1,167) |  |  | 818  |  |
| Total revenues |  | 13,208  |  |  | 12,480  |  |  | 37,765  |  |  | 37,577  |  |
|  |  |  |  |  |  |  |  |  |
| Costs and expenses |  |   |  |   |  |   |  |   |
| Property and casualty insurance claims and claims expense |  | 10,073  |  |  | 8,264  |  |  | 27,262  |  |  | 21,514  |  |
| Shelter-in-Place Payback expense |  | —  |  |  | —  |  |  | —  |  |  | 29  |  |
| Accident, health and other policy benefits |  | 263  |  |  | 277  |  |  | 801  |  |  | 771  |  |
| Amortization of deferred policy acquisition costs |  | 1,682  |  |  | 1,582  |  |  | 4,913  |  |  | 4,650  |  |
| Operating costs and expenses |  | 1,842  |  |  | 1,890  |  |  | 5,594  |  |  | 5,304  |  |
| Pension and other postretirement remeasurement (gains) losses |  | 79  |  |  | 40  |  |  | 91  |  |  | (404) |  |
| Restructuring and related charges |  | 14  |  |  | 23  |  |  | 27  |  |  | 145  |  |
| Amortization of purchased intangibles |  | 90  |  |  | 109  |  |  | 264  |  |  | 267  |  |
|  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Interest expense |  | 85  |  |  | 69  |  |  | 251  |  |  | 246  |  |
| Total costs and expenses |  | 14,128  |  |  | 12,254  |  |  | 39,203  |  |  | 32,522  |  |
|  |  |  |  |  |  |  |  |  |
| (Loss) income from operations before income tax expense |  | (920) |  |  | 226  |  |  | (1,438) |  |  | 5,055  |  |
|  |  |  |  |  |  |  |  |  |
| Income tax (benefit) expense |  | (237) |  |  | 20  |  |  | (377) |  |  | 1,008  |  |
|  |  |  |  |  |  |  |  |  |
| Net (loss) income from continuing operations |  | (683) |  |  | 206  |  |  | (1,061) |  |  | 4,047  |  |
|  |  |  |  |  |  |  |  |  |
| Income (loss) from discontinued operations, net of tax |  | —  |  |  | 325  |  |  | —  |  |  | (3,272) |  |
|  |  |  |  |  |  |  |  |  |
| Net (loss) income |  | (683) |  |  | 531  |  |  | (1,061) |  |  | 775  |  |
|  |  |  |  |  |  |  |  |  |
| Less: Net loss attributable to noncontrolling interest |  | (15) |  |  | (7) |  |  | (34) |  |  | (7) |  |
|  |  |  |  |  |  |  |  |  |
| Net (loss) income attributable to Allstate |  | (668) |  |  | 538  |  |  | (1,027) |  |  | 782  |  |
|  |  |  |  |  |  |  |  |  |
| Less: Preferred stock dividends |  | 26  |  |  | 30  |  |  | 79  |  |  | 87  |  |
|  |  |  |  |  |  |  |  |  |
| Net (loss) income applicable to common shareholders |  | $ | (694) |  |  | $ | 508  |  |  | $ | (1,106) |  |  | $ | 695  |  |
|  |  |  |  |  |  |  |  |  |
| Earnings per common share applicable to common shareholders |  |   |  |   |  |   |  |   |
| Basic |  |  |  |  |  |  |  |  |
| Continuing operations |  | $ | (2.58) |  |  | $ | 0.62  |  |  | $ | (4.04) |  |  | $ | 13.31  |  |
| Discontinued operations |  | —  |  |  | 1.11  |  |  | —  |  |  | (10.98) |  |
| Total  |  | $ | (2.58) |  |  | $ | 1.73  |  |  | $ | (4.04) |  |  | $ | 2.33  |  |
|  |  |  |  |  |  |  |  |  |
| Diluted |  |  |  |  |  |  |  |  |
| Continuing operations |  | $ | (2.58) |  |  | $ | 0.62  |  |  | $ | (4.04) |  |  | $ | 13.11  |  |
| Discontinued operations |  | —  |  |  | 1.09  |  |  | —  |  |  | (10.81) |  |
| Total |  | $ | (2.58) |  |  | $ | 1.71  |  |  | $ | (4.04) |  |  | $ | 2.30  |  |
|  |  |  |  |  |  |  |  |  |
| Weighted average common shares - Basic |  | 268.7  |  |  | 293.1  |  |  | 273.5  |  |  | 298.1  |  |
| Weighted average common shares - Diluted |  | 268.7  |  |  | 297.9  |  |  | 273.5  |  |  | 302.6  |  |
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See notes to condensed consolidated financial statements.Third Quarter 2022 Form 10-Q  1
