Dear Fellow Allstaters,

We faced significant headwinds from inflation and declining investment markets in the second quarter, which adversely impacted operating results. Inflation in the cost to repair vehicles and homes, high catastrophe losses and an increase in claim costs for the prior year led to an underwriting loss in the quarter. When combined with the negative impact of higher interest rates and lower equity prices on investment valuations, this led to a net loss of $1.0 billion. We have been proactively addressing these trends over the last nine months by raising insurance rates and changing investment allocations, which mitigated the negative impact and put us on a path

to improve profitability.

Allstate has the talent and financial resources to live into Our Shared Purpose as we execute the strategy of increasing market share in personal property-liability and expanding the circle of protection for customers. World events and economic challenges affect us as Allstaters and personally, which can be stressful. So let’s support our customers, fellow Allstaters and those who are integral to our lives.

Earnings Highlights

• Revenues were $12.2 billion for the three months, a decrease of 3.4% from the prior-year quarter as an 8.6% increase in Property-Liability premiums and growth in Protection Services were more than offset by lower revenues from investments.

• The net loss applicable to common shareholders was $1.0 billion, compared to income of $1.6 billion in the prior-year quarter. This represents losses on underwriting and investments, which were partially offset by earnings from Protection Services and Allstate Health and Benefits.

• Total policies in force were 187.7 million, a slight decline from the prior year as increases in the Property-Liability businesses were offset by a decline in Allstate Protection Plans policies reflecting the ending of a retail relationship in 2019.

Operating Priorities

Improve Customer Value. Auto and home insurance rate increases are being accelerated toimprove underwriting profitability. As a result, we must seek to provide even more value to customers for their hard-earned money. This means being even more responsive and empathetic as we work to retain customers. Increasing customer retention in the face of higher prices will be difficult but will be rewarded if we can achieve the growth targets in the Customer Retention and Growth bonus.

Achieve Target Returns on Capital.

Increasing prices will improve profitability, but more actions need to be taken to execute our growth strategy. Costs will have to continue to be lowered so that price increases can be mitigated for customers. This will require leveraging our internal talent and finding external partners to improve efficiency and effectiveness. Proactively Manage Investments. Investment actions taken over the last nine months have mitigated the negative impact of declining valuations, reducing our losses by about $1.3 billion. We have the capital to hold investments through this economic cycle and are positioned to take advantage of opportunities when markets improve.

Grow Customer Base.

Continued execution of the Transformative Growth strategy is

positioning us for market share growth in personal property-liability. In May, we successfully launched a beta auto insurance product and web-based sales experience in Illinois that is powered by new technology. We will continue to invest in Transformative Growth. The Protection Services businesses are also investing in growth while addressing the impacts of inflation.

While the world changes, Allstate’s purpose is consistent: empowering customers with protection to help them realize their hopes and dreams. We have the strategy, talent, customer base, brand and financial resources to adapt and win. Allstate will continue to lead the way by creating the future!

Tom Wilson

Chair, President and CEO

Mario Rizzo

Chief Financial Officer