The Allstate Corporation (NYSE:ALL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 09:00 am ET

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The Allstate Corporation (NYSE:ALL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Allstate Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

I would now like to introduce your host for today's program, Mark Nogal, Director of Investor Relations. Please go ahead, sir.

Executive
Mark Nogal

Thank you, Jonathan. Good morning. Welcome, everyone, to Allstate's Second Quarter 2020 Earnings Conference Call. After prepared remarks, we'll have a question-and-answer session. Yesterday, following the close of the market, we issued our news release and investor supplement, filed our 10-Q and posted today's presentation along with our reinsurance update on our website at allstateinvestors.com. Our management team is here to provide perspective on these results and further context on our strategy to grow personal property-liability market share.

As noted on the first slide of the presentation, our discussion will contain non-GAAP measures for which there are reconciliations in the news release and investor supplement and forward-looking statements about Allstate's operations. Allstate's results may differ materially from these statements, so please refer to our 10-K for 2019 and other public documents for information on potential risks.

And now I'll turn it over to Tom.

Executive
Tom Wilson

Good morning. Thank you for joining us this day on Allstate. So let's start on slide two of its Allstate's strategy and our second quarter highlights. So our purpose is to protect people from life's uncertainties and to be a positive personal good. And as you know, our strategy has two components: increase personal proper liability and market share and expand into other protection businesses, which are shown in those two ovals. Richest Allstate brands, customers and capabilities to both of those components. This strategy is an adaption the coronavirus pandemic led to excellent operating in the second quarter, as shown on the right hand. The enterprise customer experience score increased as employees and agencies did an excellent job of working remote, and we benefited from leading on the shelter-in-place payback and helping customers in other ways.

Profitability was good with adjusted net income of $2.46 per share. We also made progress at our multiyear transformative growth plan by leveraging the direct sales capabilities of Esurance and lowering expenses. Allstate Protection Plans, which, as you know, we acquired 3.5 years ago for $1.4 billion and high-growth and high returns, section plans [Technical Issues] at the end of 2017 and estimated adjusted net income of $35 million in the quarter and $69 million for the first six months of 2020. The performance-based core losses in the quarter reduced reported net investment income despite solid total loan growth. Our profitable growth it depends overall [Technical Issues].

We move to slide three. I'll say quickly excellent operating results, total revenues of $11.2 billion increased 0.5% of the prior year for gain and growth in the property-liability premium earned were -- that more than offset the decline in investment income for