Prosperity Report

Why a Prosperity Report?

Tom Wilson
Board Chair, President and Chief Executive Officer

Allstate is about creating the future

Annual reports were created before ubiquitous and continuous information flows. Today, a company’s successes and disappointments are tweeted while blogs and social media sites shape reputation one word at a time. As a result, we want to share the broader story of Allstate’s successes and challenges in the first of many Prosperity Reports.

Businesses create prosperity. Iron rocks are molded into steel skyscrapers and molecules are combined to create lifesaving drugs. Allstate protects tens of millions of people from life’s uncertainties and helps them rebuild their lives after disaster strikes. Private enterprises employ 85% of the U.S. workforce. Capital, people, intelligence and processes are combined to make the world a better place. Quite simply, the world is a better place because of one of society’s greatest organizational creations: business.

To continue creating prosperity businesses must take on a bigger role in society. Let’s be clear, a business needs to make an acceptable profit since this is a measure of how effectively it uses society’s resources. Yet more is expected and needed from business. Eighty-seven percent of young Americans believe that businesses need to do more than make a profit. Companies also need to be held accountable for creating jobs, making sure free markets work and improving our communities.

At Allstate we pursue these four goals by following Our Shared Purpose. In business, it is often said what gets measured gets done. We created this Prosperity Report to show how we measure up to our aspirations.

Tom Wilson

We create attractive risk-adjusted returns

Our Corporate Goal: Create long-term value by serving our stakeholders, taking appropriate risks, and leveraging our capabilities and strategic assets.

“We measure financial returns by annual profit, return on capital and total return to shareholders. In 2017 we had very strong profitability as a multiyear auto insurance profit improvement plan paid off. Investment return was a strong 5.9% on our $83 billion diversified portfolio. We proactively manage capital for the total enterprise, each marketfacing business and by risk type. As a result, we generated a 13.4% adjusted net income return on equity*. Shareholder returns should be measured across a range of time periods, and Allstate exceeded its peers over one-, three- and five-year periods.”

— Mario Rizzo
Chief Financial Officer


Adjusted net income*

Adjusted net income per common share*

  • Property-liability combined ratio of 93.6 in 2017 improved 2.4 points from the prior year.
  • Auto insurance underwriting profit increased by $1.14 billion in 2017 from 2016. Homeowners insurance generated an underwriting profit of $658 million despite elevated catastrophe losses.

Adjusted net income return on common equity*

  • Our capital structure includes a mix of debt, preferred stock and common shares, resulting in substantial financial strength and an attractive cost of capital.
  • We protect over 6 million homes from catastrophe losses after natural disasters. Allstate is a leader in using reinsurance and capital markets to mitigate this risk for shareholders.
  • The $83 billion investment portfolio is 62% investment-grade fixed income securities but also includes $13.4 billion of equity and performance-based investments, which provides balanced risk-adjusted returns.

Total shareholder return vs. market indices (%)

  • Our quarterly dividend per common share increased 12% in 2017 and an additional 24% in 2018.
  • Since the beginning of 2013, we returned $12 billion to common shareholders by repurchasing 32% of common shares outstanding and paying dividends of $2.3 billion on common shares.

Book value per common share

“Superior investment returns require a disciplined process, rigorous risk management and intellectual curiosity to actively examine opportunities overlooked by others.”

— John Dugenske, Chief Investment and Corporate Strategy Officer

*For definition of this term, please see the definitions of Non-GAAP measures on pages 83-86 of our 2018 Proxy Statement.

We focus relentlessly on our priorities

Our Shared Purpose Priorities:

  • Customer focus
  • Operational excellence
  • Enterprise risk and return
  • Sustainable growth
  • Capital management

“We manage our business and fulfill our role in society by broadly defining our purpose. In the near term, we are guided by five annual operating priorities. Long-term priorities are equally important and are fully integrated into our strategies and operating plans.”

— Steve Shebik, Vice Chair

Customer focus

  • We serve distinct customer segments with differentiated offerings enabling them to do business with Allstate when, where and how they choose. Through Allstate, Encompass, Esurance and Answer Financial, we’re the only insurer to cover all segments of the property-liability market.
  • We’re doing a better job taking care of our customers. Our Net Promoter Score, which measures how likely customers are to recommend us, finished 2017 1.6 points higher than year-end 2016, reflecting increases across our market-facing businesses.

“We’re reimagining life insurance end-to-end, starting with customer insights, bringing in breakthrough technologies, and marrying it with our strong personal lines business in unique ways.”

— Mary Jane Fortin, President, Allstate Financial

Operational excellence

  • An integrated digital enterprise is being built that uses technology, data, advanced analytics and process redesign to improve effectiveness and efficiency.
  • More than 70% of drivable cars are now inspected through QuickFoto Claim®, our smartphone app that enables customers to start a claim by sending us photos of damage to their vehicles. Claims are now settled in hours instead of days.

“(The money) was automatically deposited right into my bank account. It was ridiculously easy.”

— Karen, QuickFoto Claim customer

  • Nearly 50% of Allstate employees are trained in the principles of Continuous Improvement, which empowers them to transform how we work through the use of strategic problem-solving tools and techniques.

Sustainable growth

  • Allstate’s business model is being broadened to create additional growth opportunities, leverage capabilities and diversify risk and return. SquareTrade® was acquired in 2017 for $1.4 billion.
  • SquareTrade policies grew 35.8% for the year, as the company expanded its U.S. retail and European cellphone businesses.
  • Property-liability policies declined slightly in 2017 as we continued to execute our profit improvement plan, but we are positioned for growth in 2018.
  • Allstate Benefits continued its 17-year track record of growth in 2017, with policies in force increasing 7.4%.

Policies in force (millions)

We live our values every day

Our Values:

  • Honesty, caring and integrity
  • Inclusive diversity
  • Engagement
  • Accountability
  • Superior performance

“Our values represent who we are and how we conduct ourselves – not just as employees, but as people, leaders, decision makers and members of society. They define our culture and what it means to be an Allstater. They are non-negotiable. It’s about doing the right thing in the right way at the right time.”

— Tom Wilson


  • The 2017 Integrity Index, which measures the ethical health of our corporate culture across the Allstate family of companies on a 7-point scale, reported:
    • For “Comfort Speaking Up,” employees scored their environment a 6.12.
    • For “Direct Manager Leadership,” employees scored their management a 6.19.
  • Our survey results consistently score above the external benchmark, reflecting the effectiveness of our ethics and compliance culture.
  • As we expand our businesses and brands, we work hard to instill a culture where everyone has an obligation to ask questions, raise concerns and report violations of our Global Code of Business Conduct.

“Global corporations operating with a common rule of law are now society’s strongest force to improve the human condition. … The World’s Most Ethical Companies in particular continued to show exemplary leadership. I congratulate everyone at Allstate for being recognized as one of the World’s Most Ethical Companies.”

— Timothy Erblich, CEO, Ethisphere

Inclusive diversity

  • We strive for a workforce that mirrors the diversity of the customers and communities we serve.
    • We have 11 diverse Employee Resource Groups with over 10,000 members. These groups bring employees together to develop professionally around shared communities.
    • We have Inclusive Diversity commitments (hiring, development and advancement) in all areas of the business.
    • We continuously work to ensure we have a diverse pipeline of talent at all leadership levels.
2017 employee diversity
Female 56.3%
Minority 35.1%
African-American 16.4%
Hispanic 11.0%
Asian/Pacific Islander 5.5%
Native American 0.3%
Two or more races 1.9%
2017 leadership diversity
Board of Directors 50%
Officers 35%
Managers 57%

For more on ethics and inclusive diversity, see Allstate’s Sustainability Report at


  • As a service business, employee engagement enhances effectiveness and efficiency.
2017 Inspire Culture* employee survey
Engagement (favorability) 83%
I believe strongly in Allstate’s Shared Purpose 88%
  • Our Shared Purpose declares that we provide employees fulfilling opportunities, personal growth and performance rewards. In line with these principles, Allstate shared a portion of recently reduced federal taxes, providing $1,000 to $2,000 of employee Choice Dollars and investing more in development. Employee satisfaction on benefits has declined as efforts to equalize medical benefits have led to higher cost increases for employees with families.
  • The Allstate system harnesses the talent of 82,900 people, 9,300 more than in 2013.
  • In 2017, we retained 86% of our employees.
  • Agency owner satisfaction increased in 2017 after it declined in the previous two years, reflecting a need to lower growth and increase average auto insurance prices.
2017 agency relationship survey
Overall satisfaction 73% 66%
Confidence Index 80% 71%
Exclusive agency owners (EA), financial specialists (FS)

“(Sharing the tax savings) shows the company truly cares for its employees.”

— Barbara G., employee, Roanoke, Virginia

Number of Allstaters

*The Inspire Culture survey is one of two biannual engagement surveys that make up Allstate’s “continuous listening strategy.”

We lead from every seat

Our Leadership Principles

  • We’re here to serve.
  • We win together.
  • We drive results.
  • We’re transparent.
  • We continuously get better.
  • We develop each other.

“Everyone is a leader at Allstate. We have six Leadership Principles that guide and empower employees. These principles define our culture, drive business results and are embedded in talent recruitment and performance management.”

— Harriet Harty
Executive Vice President, Human Resources

Personal purpose

  • Allstate is striving to be a purpose-driven company powered by purpose-driven people.
  • Energy for Life (EFL) is a program that enables employees to clarify their personal purpose and build a plan to achieve more meaning in their lives. Over 27,000 Allstaters have completed EFL since it was launched for employees in 2010 and agency owners in 2012.
  • The Allstate Ambassador network is a movement of more than 7,800 Allstaters who are engaging beyond their day-to-day roles. From on-the-job innovation to giving back, Ambassadors offer unique ways for every Allstater to bring the promise of our Employee Value Proposition to life.


  • We empower our employees to continue to learn, develop and take ownership of their careers. Our enterprise learning strategy is grounded in foundational pillars:
    • Building the technical skills needed in the future, enabling sustainable long-term employability
    • Creating lifelong learning opportunities through education, job assignments and our Tuition Assistance Program
  • Allstate provides employees with abundant training opportunities, such as webinars, seminars and classroom learning. In 2017, employees completed more than 300,000 courses, accounting for nearly 360,000 hours of learning.

Performance rewards

  • Pay for performance and competitive pay are critical elements of Allstate’s compensation philosophy and attract, retain and engage talent.
  • Allstate performs pay fairness analyses on employees’ salaries annually as well as analyzes discretionary pay decisions for its bonus-eligible leaders, looking for unintentional consequences that may negatively impact women, minorities and employees over 40. If discrepancies are identified, action is taken to adjust pay to ensure fairness in compensation.
  • Our Annual Incentive Plan (AIP) rewarded 3,788 leaders in 2017. Reflecting the company’s strong year, AIP funding was significantly above target in 2017, following two years of company results below target.

We protect and restore people’s lives

We are the Good Hands®: We help customers realize their hopes and dreams by providing the best products and services to protect them from life’s uncertainties and prepare them for the future.

“This is what it means to be in good hands. When the worst happens, we’re out in force. Taking care of our customers is job No. 1. That’s Allstate’s purpose.”

— Glenn Shapiro
President, Allstate Personal Lines

Trusted advisors

  • At Allstate, we do more than protect things. Our agency owners and financial specialists dedicate themselves to being trusted advisors, strengthening relationships with customers and helping them manage the risks they face.
  • During 2017, we surpassed 6 million personalized insurance proposals to support Allstate agencies as trusted advisors. Personalized proposals provide a dynamic, new way for agencies to present insurance options, help educate prospects about their unique needs and discuss tailored solutions.

Good work, guaranteed

  • We believe in the claim service we provide. That’s why we offer Claim Satisfaction Guarantee®. If customers aren’t happy with their auto claim, they’ll get their money back.

“We say we sell insurance, but the truth is we sell the promise that if our customer’s life falls apart, Allstate will help put it back together.”

— Morris G., employee, Nashville, Tennessee

Catastrophe response

  • Our priority is helping customers recover as quickly as possible from life’s uncertainties.
  • With over $3 billion in catastrophe losses, 2017 was Allstate’s fourth–highest catastrophe loss year.
  • We expanded our use of drones, airplanes and satellite imagery to quickly identify and assess damage.
  • When hurricanes brought extensive flooding and damage to Texas and Florida, Allstate did more than pay claims; we provided reassurance, relief and guidance on rebuilding. Our National Catastrophe Team sent hundreds of personnel, including Mobile Claim Centers stocked with basic relief supplies.
  • The Allstate Foundation, Allstate and its employees and agency force contributed more than $2.1 million to disaster relief and recovery efforts in 2017.

We drive innovation

Our Strategic Vision is to deliver substantially more value than the competition by reinventing protection and retirement to improve customers’ lives.

 “Allstate has a history of innovation. We have led in information technology, insurance pricing sophistication, and making it easier for customers to protect and restore their lives. Many of our industry-leading innovations, such as Your Choice Auto®, have been copied by our competitors. Substantial investments in innovation are focused on the increasing connectivity of customers.”

— Don Civgin
President, Service Businesses

New products and services

  • In 2017, Allstate broadened consumer protection through the acquisition of SquareTrade, a provider of protection plans for consumer electronics and appliances.
  • Allstate is serving the insurance needs of the sharing economy.
    • In 2015, we launched the ride-hailing endorsement Ride for Hire®, now in 47 states.
    • In 2016, we added HostAdvantageSM, an endorsement to cover insurance gaps for home-sharing hosts.
    • More recently, Allstate established a partnership with Uber to protect drivers and passengers with commercial auto coverage.

“We will substantially improve our customer value proposition by using data, analytics and emerging technologies.”

— Suren Gupta, Executive Vice President, Enterprise Technology and Strategic Ventures

Connected Car

  • The Allstate Drivewise® and Esurance DriveSense® telematics offerings provide customers with the tools and real-time, personalized driving feedback they need to become safer drivers and reward them with incentives and discounts.
  • Arity provides telematics-based solutions to over 1 million Allstate and Esurance customers.
  • Allstate was the first major U.S. insurer to introduce a mobile app to provide customers with insights into how they drive and reward them for safe driving.

Telematics and connected-car technology improve pricing accuracy and driving experience

The future of transportation

“Autonomous cars are really just the tip of the iceberg. We have the opportunity to create prosperity for virtually every family in America by improving the efficiency of the personal transportation system.”

— Tom Wilson

  • The value of personal transportation vehicles in America is $4 trillion. On average, utilization of personal vehicles during peak hours is only 33%. A 20% improvement in the efficiency of the personal transportation system could generate $3,000 in savings per U.S. household each year, or $250 per month. That is a 5% increase in household income.
  • To thrive in a multimodal world, Allstate is working with the public and private sectors to create the necessary technologies and infrastructure. We are committed to shaping this change, with the aim of improving economic mobility for millions of Americans.

A legacy of innovation

  • 1931: Allstate, founded in the depths of the Great Depression, offers insurance via mail order.
  • 1934: Opens the first sales location, in a Chicago Sears store.
  • 1939: Allstate tailors auto rates by age, mileage and use of car. The industry follows suit.
  • 1952: Opens the first drive-in claim office, revolutionizing the way auto claims are handled.
  • 1961: Allstate creates the first truly national motor club.
  • 1968: Allstate begins advocating for greater auto passenger safety, including seat belts and air bags.
  • 1996: Establishes the first dedicated catastrophe unit, which quickly deploys adjusters to affected customers.
  • 2005: Introduces Allstate Your Choice Auto® Insurance, which provides customers with more coverage choices and savings.
  • 2005: Allstate is the first insurance company to offer “accident forgiveness,” now imitated by competitors.
  • 2011: Offers an innovative Claim Satisfaction Guarantee® for auto claims.
  • 2011: Expands to serve all customer segments through our four brands: Allstate, Encompass, Esurance and Answer Financial.
  • 2013: Allstate introduces QuickFoto Claim® to provide a faster, simpler, easier auto claims experience.
  • 2016: Allstate launches Arity to build insurance, automotive and shared mobility technologies to make transportation smarter, safer and more useful.
  • 2016: The Allstate Good Hands Rescue® App leverages GPS and proprietary technology to deliver rapid roadside services.
  • 2017: Allstate acquires SquareTrade to serve broader consumer protection needs.

We bring out the good

We’re here to serve, and we care a lot. It’s at the heart of everything we do here at Allstate. We make a conscious choice to lead by serving our customers, communities and each other.

“Allstate creates prosperity for the communities where we live and serve. We are a force for good – both as a company and as individuals united through purpose. We embody the belief that corporations can do more to make the world a better place.”

— Vicky Dinges
Senior Vice President, Corporate Responsibility


  • More than 5 million youth are engaged in Allstate Foundation Good Starts Young programs, aimed at helping young people thrive not just as students, but also as leaders, dreamers, entrepreneurs and citizens.
    • Through WE Schools, Allstate programs were in 4,500 U.S. schools or youth groups in 2017.
  • We empower survivors of domestic violence by helping them take steps toward financial independence. The Allstate Foundation Purple Purse® program is the nation’s longest-running program providing financial empowerment education.
    • We raised $4.3 million in 2017 for service organizations that work directly with domestic violence survivors.

Volunteerism and local agency involvement

  • Allstate employees and agencies know that giving back is part of Allstate’s DNA. They are also community leaders.
    • In 2017, our employees and agency force reported over 258,000 hours of service.
    • Allstate, The Allstate Foundation and Allstaters made $47 million in charitable contributions.
    • The Allstate Foundation provided Helping Hands® grants to 2,352 nonprofit organizations in nearly 1,500 towns.
    • Helping Hands grants encourage and recognize agency owners and financial specialists who volunteer in their communities. Forty-two percent of agencies received grants to support their involvement in local causes.

Supplier diversity

  • We empower diverse and emerging leaders and businesses through our Supplier Diversity Program. We provide training, tools, mentoring and opportunities to help diverse suppliers compete and build their businesses.
  • Allstate spent $450 million, or 9% of total supplier spending, with diverse suppliers in 2017.

Investing in communities

  • We have supported state and local communities through investments in $8.3 billion of municipal bonds.
  • We helped expand access to affordable housing through investing in low-income housing tax credit programs that finance over 70,000 units.

For more on how Allstate brings out the good, see Allstate’s Sustainability Report at

Honors and recognition

We are a force for good

  • World’s Most Ethical Companies® 2015, 2016, 2017, 2018 — Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices.
  • Best Compliance and Ethics Program (large cap) Corporate Governance 2016 from Corporate Secretary — Recognizes companies for their successful integration of good governance principles across all disciplines to achieve ethical governance environments.
  • Civic 50 Honoree 2017 from Points of Light — Recognizes the 50 most community-minded companies in the nation each year and showcases how companies can use their time, skills and other resources to improve the quality of life in communities.
  • Top 100 Green Companies in the United States 2016 — Newsweek

Recognition of our innovation

  • Fortune Change the World 2017 — Honors 50 companies around the globe that are tackling major societal problems and whose good works contribute to their bottom lines.
  • Top 10 Innovator of the Decade by InformationWeek and No. 13 on 2016 InformationWeek Elite 100 List — Honored for technology initiatives, ranging from the use of data analytics to the introduction of information technology-based products and services.
  • CIO (Chief Information Officer) 100 Award 2016 — Recognizes organizations around the world that exemplify the highest level of operational and strategic excellence in information technology.

Commitment to diversity

  • Top 50 Companies for Supplier Diversity 2017 — Black Enterprise magazine
  • 2017 Diversity Best Practices Inclusion Index — Diversity Best Practices
  • Top 50 Companies for Diversity 2017 — DiversityInc
  • Best Companies for Diversity 2017 — Black Enterprise
  • Top 60 Companies for Executive Women 2017 — National Association for Female Executives
  • Best Companies for Multicultural Women 2017 — Working Mother
  • Top Corporation for Women’s Business Enterprise 2017 — Women’s Business Enterprise National Council
  • Best-of-the-Best Corporation for Inclusion — National Business Inclusion Consortium
  • Military Friendly Employer Gold Award — Military Friendly®
  • Military Friendly Spouse Employer — Military Friendly®

“Allstaters are people with purpose. We come together head and heart each day to do the right thing for our customers, communities and each other. The external recognition we receive is a testament to our commitment to be a force for good in society.”

— Susie Lees, General Counsel

For more on recognition Allstate has received, see Allstate’s Sustainability Report at