Allstate - You're in good hands

Allstate property catastrophe management strategy Allstate provides a variety of insurance products to millions of households across the country. Our priority is to make sure we are able to protect our customers in the event they suffer a covered loss. To ensure we have the capital to do that now and in the future, we must responsibly manage our own risk.

Allstate's property catastrophe management strategy is to adjust our total risk profile by reducing exposure in high-risk, catastrophe-prone areas. Future actions Allstate will consider to further reduce its catastrophe exposure include:

• Purchasing additional reinsurance for major hurricane and earthquake catastrophe risks;
• Rate increases, changes to deductibles and coverage;
• Limitations on new business writings;
• Changes to underwriting requirements;
• No longer offering policy renewals in certain markets;
• Allowing options for alternative service providers in certain areas.

The current insurance model is not well-suited for handling losses from "low frequency, high severity" mega-catastrophes. These events carry immense cost, are unpredictable and nearly impossible to price for - and we cannot effectively insure what we cannot predict. To be there for our customers when they need us most, we are limiting our exposure in areas where there is extreme potential for mega-catastrophes to occur.

In addition, as a publicly-traded company, we are responsible to our shareholders. These actions will enable shareholders to earn an acceptable return on the risks assumed in the personal lines property business.

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