Allstate Corporation (The)

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 listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1 on your telephone. As a reminder, today's program is being recorded. I would now like to introduce your host for today's program, Mark Noble, Director of Investor Relations. Please go ahead, sir.

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 a 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.

Well, good morning. Thank you for joining us to stay current on Allstate. Let's start on slide two of Allstate's strategy and our second quarter highlights. So our purpose is to protect people from life's uncertainties and be a positive for personal good. And as you know, our strategy has two components, increase personal property liability market share and expand into other protection businesses, which are shown in those two levels. First, the Allstate brand, customer and capabilities, both of those components. This strategy dedication to the coronavirus pandemic led to excellent operating results in the second quarter, shown on the right. The enterprise customer experience score increased as employees and agents did an excellent job of working remotely, 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 on our multi-year transformative growth plans, by leveraging the direct sales capabilities of insurance and lowering expenses. All state protection plans, which, as you know, we acquired three and a half years ago for $1.4 billion, and high growth and high returns. Protection plans in full at the end of 2017, and it's made adjusted net income of $35 million and a quarter and $69 million for the first six months of 2020. The performance-based plans report losses in the quarter, reduced reported net investment income despite solid total growth. Our profitable growth, depending on the overall, we moved to slide three. I'll say quickly, excellent operating results, total revenues of $11.2 billion, or gain in growth in the property liability premium earned were more than offset the declines in investment income for foreign space losses. Net investment income of $1.2 billion increased 49% to the prior year quarter. As you can see from the middle of the table, the market value adjusted to $1.2 billion. with adjusted net income return at 17.8%. Thanks, Tom. Let's go to slide five.