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Best’s Key Rating Guide Presentation ReportThis A.M. Best report is provided compliments of:
Company: Your Agency NameAddress: Your Address
Your City, NJ 00000
Contact: Your NameTitle: Your TitlePhone: Your PhoneEmail: Youremail@anywhere.com
002017 Allstate Insurance Company
Company Information
AMB #: 002017 NAIC #: 19232 FEIN: 360719665 Domicile: Illinois
Address and Phone: Organization Type: Stock
3075 Sanders Road, Suite G2H Marketing Type: Exclusive/Captive Agent
Northbrook, IL 60062-7127
847-402-5000
US Specialty Lines: Personal Lines
Year Commenced Business: 1931 Parent AMB#-Name: 052284 - Allstate Insurance Holdings, LLC
Top Officer: Matthew E. Winter, Chairman, President & CEO Ultimate Parent AMB#-Name: 058312 - The Allstate Corporation
Best’s Credit Ratings
Best’s Financial Strength Rating: A+ (04/07/2016) Outlook: Stable
Best’s Long-Term Issuer Credit Rating: aa- (04/07/2016) Outlook: Stable
Financial Size Category: XV ($2 Billion or Greater)
Best’s Rating History
Rating Date BEST’S FSR BEST’S ICR
04/07/2016 A+ (Superior) aa- (Superior)02/12/2015 A+ (Superior) aa- (Superior)01/31/2014 A+ (Superior) aa- (Superior)01/31/2013 A+ (Superior) aa- (Superior)01/26/2012 A+ (Superior) aa- (Superior)
States Licensed
States & Territories Licensed: AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NM, NV, NY, OH, OK,OR, PA, PR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
Licensed for Reinsurance: None
Approved for Reinsurance: None
Reinsurance (Other): None
Surplus Lines Writer: None
Authorized under the Risk Retention Act: None
Qualified or Accredited Reinsurer: None
Principal States
States or Territories %
All Other 53.2New York 18.1California 11.2Florida 7.9Pennsylvania 5.1Louisiana 4.5
Principal States
All OtherNew YorkCaliforniaFloridaPennsylvaniaLouisiana
53.2 %
18.1 %
11.2 %
7.9 %
5.1 %4.5 %
Friday, July 22, 2016 Copyright © 2016 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. Page 1 of 4
Best’s Key Rating Guide Presentation Report
002017 Allstate Insurance Company
Principal Lines
Lines of Business %
Priv Pass Auto Liab 39.1Auto Physical 29.7Homeowners 26.0Com’l MultiPeril 2.4All Other 1.9Comm’l Auto Liab 0.9
Principal Lines
Priv Pass Auto LiabAuto PhysicalHomeownersCom’l MultiPerilAll OtherComm’l Auto Liab
39.1 %
29.7 %
26.0 %
2.4 %1.9 %
0.9 %
Balance Sheet
2011 2012 2013 2014 2015
Cash & Short-Term Invest (%) -1.0 0.0 0.7 -0.3 0.6
Stocks and Bonds (%) 74.8 74.7 75.6 76.9 75.7
All Other Assets (%) 26.2 25.4 23.7 23.4 23.8
Total Assets ($000) 41,023,043 42,133,105 43,733,282 43,246,270 43,271,170
Loss Reserves (%) 58.2 56.0 55.0 54.4 55.5
Unearned Premiums (%) 32.5 33.2 33.9 35.0 35.0
All Other Liabilities (%) 9.2 10.7 11.1 10.6 9.5
Total Liabilities ($000) 25,896,376 25,872,227 26,478,545 26,980,708 27,952,898
Policyholders’ Surplus ($000) 15,126,667 16,260,878 17,254,737 16,265,563 15,318,272
Balance Sheet
2011 2012 2013 2014 2015-2%
8%
18%
28%
38%
48%
58%
68%
78%
88%
Cash & Short-Term Invest (%) Stocks and Bonds (%) All Other Assets (%)Loss Reserves (%) Unearned Premiums (%) All Other Liabilities (%)
Balance Sheet
2011 2012 2013 2014 20150
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
Total Assets ($000) Total Liabilities ($000) Policyholders’ Surplus ($000)
Operations
2011 2012 2013 2014 2015
Direct Premiums Written ($000) 8,707,630 8,225,469 7,741,648 7,288,913 6,734,916
Net Premiums Written ($000) 23,547,740 24,193,418 25,108,519 26,453,381 27,774,297
Business Net Retention (%) 98.0 98.0 98.1 98.3 98.6
Net Underwriting Income ($000) -992,612 925,944 1,377,788 1,297,194 1,133,259
Net Investment Income ($000) 1,164,531 1,140,074 1,129,421 1,220,184 1,411,718
Pretax Operating Income ($000) 342,259 2,221,770 2,711,421 2,656,018 2,655,494
Net Income ($000) 222,955 1,950,401 2,465,456 2,313,797 1,705,438
Operations
2011 2012 2013 2014 20150%
20%
40%
60%
80%
100%
Business Net Retention (%)
Operations
2011 2012 2013 2014 2015-1,000,000
4,000,000
9,000,000
14,000,000
19,000,000
24,000,000
29,000,000
Direct Premiums Written ($000) Net Premiums Written ($000)Net Underwriting Income ($000) Net Investment Income ($000)Pretax Operating Income ($000) Net Income ($000)
Friday, July 22, 2016 Copyright © 2016 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. Page 2 of 4
Best’s Key Rating Guide Presentation Report
002017 Allstate Insurance Company
Profitability Tests
2011 2012 2013 2014 2015
Loss Ratio (X) 78.4 69.4 66.4 68.0 70.1
Expense Ratio (X) 25.7 26.5 27.6 26.5 25.5
Combined Ratio After Policyholders’ Dividends (X) 104.1 95.9 94.0 94.5 95.6
Operating Ratio (X) 99.1 91.2 89.4 89.8 90.4
Pretax Return On Revenue (%) 1.5 9.3 11.0 10.2 9.7
Yield on Invested Assets (%) 3.4 3.2 3.1 3.3 3.9
Return on PHS (%) 1.8 16.0 18.3 16.6 9.5
Profitability Tests
2011 2012 2013 2014 20150%
20%
40%
60%
80%
100%
120%
Loss Ratio (X) Expense Ratio (X)Combined Ratio After Policyholders’ Dividends (X) Operating Ratio (X)Pretax Return On Revenue (%) Yield on Invested Assets (%) Return on PHS (%)
Leverage Tests
2011 2012 2013 2014 2015
Change in NPW (%) 0.3 2.7 3.8 5.4 5.0
NPW to PHS (X) 1.6 1.5 1.5 1.6 1.8
Net Leverage (X) 3.3 3.1 3.0 3.3 3.6
Gross Leverage (X) 3.4 3.3 3.2 3.6 3.9
Reinsurance Recoverables to PHS (%) 15.1 19.2 21.1 26.2 26.9
Leverage Tests
2011 2012 2013 2014 20150%
5%
10%
15%
20%
25%
30%
Change in NPW (%) NPW to PHS (X) Net Leverage (X) Gross Leverage (X)Reinsurance Recoverables to PHS (%)
Liquidity Tests
2011 2012 2013 2014 2015
Quick Liquidity (%) 17.9 15.3 18.1 17.2 18.2
Current Liquidity (%) 98.6 103.3 109.3 106.6 102.5
Overall Liquidity (%) 158.7 163.2 165.5 160.6 155.0
Operating Cash Flow ($000) 406,632 1,500,711 2,563,836 2,159,064 2,758,522
Class 3-6 Bonds (% of PHS) 13.1 18.7 22.8 23.7 38.1
Liquidity Tests
2011 2012 2013 2014 20150%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Quick Liquidity (%) Current Liquidity (%) Overall Liquidity (%)Class 3-6 Bonds (% of PHS)
Liquidity Tests
2011 2012 2013 2014 20150
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Operating Cash Flow ($000)
Loss Reserve Tests
2011 2012 2013 2014 2015
Development to PHS (%) -3.7 -1.3 -0.2 1.0 0.0
Loss and LAE Reserves to PHS (%) 99.7 89.2 84.3 90.2 101.2
Friday, July 22, 2016 Copyright © 2016 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. Page 3 of 4
Best’s Key Rating Guide Presentation Report
002017 Allstate Insurance Company
Loss Reserve Tests
2011 2012 2013 2014 2015-5%
15%
35%
55%
75%
95%
115%
Development to PHS (%) Loss and LAE Reserves to PHS (%)
A Best’s Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and do notaddress any other risk, including, but not limited to, an insurer’s claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or anyspecific liability contractually borne by the policy or contract holder. A Best’s Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financialobligation issued by an insurer, not does it address the suitability of any particular policy or contract for a specific purpose or purchaser.
A Best’s Debt/Issuer Credit Rating is an opinion regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security.
Credit risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk, market valuerisk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does it address the suitability ofany particular financial obligation for a specific purpose or purchaser.
In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verifythe accuracy or reliability of the information. Any and all ratings, opinions and information contained herein are provided "as is," without any express or implied warranty.
Visit www.ambest.com/ratings/notice for additional information or www.ambest.com/terms.html for details on the Terms of Use.
Copyright © 2016 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.No part of this report may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the A.M. Best Company.
Friday, July 22, 2016 Copyright © 2016 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. Page 4 of 4
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