The Allstate Corporation (ALL) 10-K 25 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues
Property-liability insurance premiums (net of reinsurance ceded of $1,056, $1,139 and $1,356)	$26,194	$26,967	$27,233
Life and annuity premiums and contract charges (net of reinsurance ceded of $838, $900 and $966)	1,958	1,895	1,866
Net investment income	4,444	5,622	6,435
Realized capital gains and losses:
Total other-than-temporary impairment losses	(2,376)	(3,735)	(310)
Portion of loss recognized in other comprehensive income	457
Net other-than-temporary impairment loss recognized in earnings	(1,919)	(3,735)	(310)
Sales and other realized capital gains and losses	1,336	(1,355)	1,545
Total realized capital gains and losses	(583)	(5,090)	1,235
Total revenues	32,013	29,394	36,769
Costs and expenses
Property-liability insurance claims and claims expense (net of reinsurance ceded of $415, $620 and $370)	18,746	20,064	17,667
Life and annuity contract benefits (net of reinsurance ceded of $642, $1,150 and $671)	1,617	1,612	1,589
Interest credited to contractholder funds (net of reinsurance ceded of $32, $43 and $48)	2,126	2,411	2,681
Amortization of deferred policy acquisition costs	4,754	4,679	4,704
Operating costs and expenses	3,007	3,273	3,103
Restructuring and related charges	130	23	29
Interest expense	392	351	333
Total costs and expenses	30,772	32,413	30,106
Gain (loss) on disposition of operations	7	(6)	(10)
Income (loss) from operations before income tax expense (benefit)	1,248	(3,025)	6,653
Income tax expense (benefit)	394	(1,346)	2,017
Net income (loss)	$854	($1,679)	$4,636
Earnings per share:
Net income (loss) per share - Basic (in dollars per share)	1.58	-3.06	7.8
Weighted average shares - Basic (in shares)	539.6	548.3	594.2
Net income (loss) per share - Diluted (in dollars per share)	1.58	-3.06	7.76
Weighted average shares - Diluted (in shares)	540.9	548.3	597.5
Cash dividends declared (in dollars per share)	0.8	1.64	1.52

1_CONSOLIDATED STATEMENTS OF OP

CONSOLIDATED STATEMENTS OF OPERATIONS (parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CONSOLIDATED STATEMENTS OF OPERATIONS
Property-liability insurance premiums, Reinsurance ceded	$1,056	$1,139	$1,356
Life and annuity premiums and contract charges, Reinsurance ceded	838	900	966
Property-liability insurance claims and claims expense, Reinsurance ceded	415	620	370
Life and annuity contract benefits, Reinsurance ceded	642	1,150	671
Interest credited to contractholder funds, Reinsurance ceded	$32	$43	$48

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$854	($1,679)	$4,636
Other comprehensive income (loss), after-tax, changes in:
Unrealized net capital gains and losses	3,446	(4,626)	(1,186)
Unrealized foreign currency translation adjustments	41	(74)	53
Unrecognized pension and other postretirement benefit cost	(214)	(724)	765
Other comprehensive income (loss), after-tax	3,273	(5,424)	(368)
Comprehensive income (loss)	$4,127	($7,103)	$4,268

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Investments
Fixed income securities, at fair value (amortized cost $81,243 and $77,104)	$78,766	$68,608
Equity securities, at fair value (cost $4,845 and $3,137)	5,024	2,805
Mortgage loans	7,935	10,229
Limited partnership interests	2,744	2,791
Short-term, at fair value (amortized cost $3,056 and $8,903)	3,056	8,906
Other	2,308	2,659
Total investments	99,833	95,998
Cash	612	415
Premium installment receivables, net	4,839	4,842
Deferred policy acquisition costs	5,470	8,542
Reinsurance recoverables, net	6,355	6,403
Accrued investment income	864	884
Deferred income taxes	1,870	3,794
Property and equipment, net	990	1,059
Goodwill	875	874
Other assets	1,872	3,748
Separate Accounts	9,072	8,239
Total assets	132,652	134,798
Liabilities
Reserve for property-liability insurance claims and claims expense	19,167	19,456
Reserve for life-contingent contract benefits	12,910	12,881
Contractholder funds	52,582	58,413
Unearned premiums	9,822	10,024
Claim payments outstanding	742	790
Other liabilities and accrued expenses	5,726	6,663
Long-term debt	5,910	5,659
Separate Accounts	9,072	8,239
Total liabilities	115,931	122,125
Equity
Preferred stock, $1 par value, 25 million shares authorized, none issued	0	0
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 537 million and 536 million shares outstanding	9	9
Additional capital paid-in	3,172	3,130
Retained income	31,492	30,207
Deferred ESOP expense	(47)	(49)
Treasury stock, at cost (363 million and 364 million shares)	(15,828)	(15,855)
Unrealized net capital gains and losses:
Unrealized net capital losses on fixed income securities with OTTI	(441)
Other unrealized net capital gains and losses	(1,072)	(5,767)
Unrealized adjustment to DAC, DSI and insurance reserves	643	2,029
Total unrealized net capital gains and losses	(870)	(3,738)
Unrealized foreign currency translation adjustments	46	5
Unrecognized pension and other postretirement benefit cost	(1,282)	(1,068)
Total accumulated other comprehensive loss	(2,106)	(4,801)
Total shareholders' equity	16,692	12,641
Noncontrolling interest	29	32
Total equity	16,721	12,673
Total liabilities and equity	$132,652	$134,798

2_CONSOLIDATED STATEMENTS OF FI

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Fixed income securities, amortized cost (in dollars)	$81,243	$77,104
Equity securities, cost (in dollars)	4,845	3,137
Short-term investments, amortized cost (in dollars)	$3,056	$8,903
Preferred stock, par value (in dollars per share)	$1	$1
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	900,000,000	900,000,000
Common stock, shares outstanding	537,000,000	536,000,000
Treasury stock, shares	363,000,000	364,000,000

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Millions	Total shareholders' equity	Common Stock	Additional capital paid-in	Retained income	Deferred ESOP expense	Treasury stock	Accumulated other comprehensive income	Noncontrolling interest	Total
Balance, beginning of year at Dec. 31, 2006			$2,939	$29,070	($72)	($11,091)	$991	$92
Increase (decrease) in equity - rollforward
Equity incentive plans activity			113
Net income (loss)				4,636					4,636
Dividends ($0.80, $1.64 and $1.52 per share)				(901)
Cumulative effect of change in accounting principle				(9)
Payments					17
Shares acquired						(3,604)
Shares reissued under equity incentive plans, net						121
Change in unrealized net capital gains and losses							(1,186)		(1,186)
Change in unrealized foreign currency translation adjustments							53		53
Change in unrecognized pension and other postretirement benefit cost							765		765
Change in noncontrolling interest ownership								(41)
Noncontrolling gain (loss)								0
Balance, end of year at Dec. 31, 2007	21,851	9	3,052	32,796	(55)	(14,574)	623	51	21,902
Increase (decrease) in equity - rollforward
Equity incentive plans activity			78
Net income (loss)				(1,679)					(1,679)
Dividends ($0.80, $1.64 and $1.52 per share)				(897)
Effects of changing pension plan measurement date				(13)
Payments					6
Shares acquired						(1,323)
Shares reissued under equity incentive plans, net						42
Change in unrealized net capital gains and losses							(4,626)		(4,626)
Change in unrealized foreign currency translation adjustments							(74)		(74)
Change in unrecognized pension and other postretirement benefit cost							(724)		(724)
Change in noncontrolling interest ownership								(19)
Noncontrolling gain (loss)								0
Balance, end of year at Dec. 31, 2008	12,641	9	3,130	30,207	(49)	(15,855)	(4,801)	32	12,673
Increase (decrease) in equity - rollforward
Equity incentive plans activity			42
Net income (loss)				854					854
Dividends ($0.80, $1.64 and $1.52 per share)				(432)
Cumulative effect of change in accounting principle				863			(578)
Payments					2
Shares acquired						(3)
Shares reissued under equity incentive plans, net						30
Change in unrealized net capital gains and losses							3,446		3,446
Change in unrealized foreign currency translation adjustments							41		41
Change in unrecognized pension and other postretirement benefit cost							(214)		(214)
Change in noncontrolling interest ownership								(3)
Noncontrolling gain (loss)								0
Balance, end of year at Dec. 31, 2009	$16,692	$9	$3,172	$31,492	($47)	($15,828)	($2,106)	$29	$16,721

3_CONSOLIDATED STATEMENTS OF SH

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (parenthetical) (USD $)
	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Cash dividends declared (in dollars per share)	0.8	1.64	1.52

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities
Net income (loss)	$854	($1,679)	$4,636
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	(91)	(376)	(257)
Realized capital gains and losses	583	5,090	(1,235)
(Gain) loss on disposition of operations	(7)	6	10
Interest credited to contractholder funds	2,126	2,411	2,681
Changes in:
Policy benefits and other insurance reserves	(577)	626	(192)
Unearned premiums	(247)	(359)	(74)
Deferred policy acquisition costs	514	141	(37)
Premium installment receivables, net	26	18	(62)
Reinsurance recoverables, net	(85)	(269)	(240)
Income taxes	1,660	(1,864)	(52)
Other operating assets and liabilities	(455)	165	255
Net cash provided by operating activities	4,301	3,910	5,433
Proceeds from sales
Fixed income securities	21,359	22,936	23,462
Equity securities	6,894	9,535	9,127
Limited partnership interests	369	371	800
Mortgage loans	340	279
Other investments	520	171	173
Investment collections
Fixed income securities	5,556	4,269	5,257
Mortgage loans	1,764	844	1,649
Other investments	117	98	395
Investment purchases
Fixed income securities	(29,573)	(14,448)	(26,401)
Equity securities	(8,496)	(9,477)	(7,902)
Limited partnership interests	(784)	(982)	(1,375)
Mortgage loans	(26)	(500)	(2,936)
Other investments	(64)	(140)	(763)
Change in short-term investments, net	5,981	(8,283)	(1,323)
Change in other investments, net	(340)	(474)	(7)
Disposition (acquisition) of operations	12	(120)	3
Purchases of property and equipment, net	(189)	(291)	(274)
Net cash provided by (used in) investing activities	3,440	3,788	(115)
Cash flows from financing activities
Change in short-term debt, net			(12)
Proceeds from issuance of long-term debt	1,003	20	987
Repayment of long-term debt	(752)	(1)	(9)
Contractholder fund deposits	4,150	9,984	8,632
Contractholder fund withdrawals	(11,406)	(15,480)	(10,599)
Dividends paid	(542)	(889)	(901)
Treasury stock purchases	(4)	(1,323)	(3,604)
Shares reissued under equity incentive plans, net	3	33	109
Excess tax benefits on share-based payment arrangements	(5)	3	29
Other	9	(52)	29
Net cash used in financing activities	(7,544)	(7,705)	(5,339)
Net increase (decrease) in cash	197	(7)	(21)
Cash at beginning of year	415	422	443
Cash at end of year	$612	$415	$422

General

General
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
General	1.General Basis of presentation The accompanying consolidated financial statements include the accounts of The Allstate Corporation and its wholly owned subsidiaries, primarily Allstate Insurance Company ("AIC"), a property-liability insurance company with various property-liability and life and investment subsidiaries, including Allstate Life Insurance Company ("ALIC") (collectively referred to as the "Company" or "Allstate"). These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany accounts and transactions have been eliminated. To conform to the current year presentation, certain amounts in the prior years' consolidated financial statements and notes have been reclassified. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Nature of operations Allstate is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Allstate's primary business is the sale of private passenger auto and homeowners insurance. The Company also sells several other personal property and casualty insurance products, life insurance, annuities, funding agreements, and select commercial property and casualty coverages. Allstate primarily distributes its products through exclusive agencies, financial specialists and independent agencies. Certain products are also sold through call centers and the internet. The Allstate Protection segment principally sells private passenger auto and homeowners insurance, with earned premiums accounting for 82% of Allstate's 2009 consolidated revenues. Allstate was the country's second largest insurer for both private passenger auto and homeowners insurance as of December31, 2008. Allstate Protection, through several companies, is authorized to sell certain property-liability products in all 50 states, the District of Columbia and Puerto Rico. The Company is also authorized to sell certain insurance products in Canada. For 2009, the top geographic locations for premiums earned by the Allstate Protection segment were New York, California, Texas, Florida and Pennsylvania. No other jurisdiction accounted for more than 5% of premiums earned for Allstate Protection. Allstate has exposure to catastrophes, an inherent risk of the property-liability insurance business, which have contributed, and will continue to contribute, to material year-to-year fluctuations in the Company's results of operations and financial position (see Note7). The nature and level of catastrophic loss caused by natural events (high winds, winter storms, tornadoes, hailstorms, wildfires, tropical storms, hurricanes, earthquakes and volcanoes) and man-made events (terrorism and industrial accidents) experienced in any period cannot be predicted and could be material to results of operations and financial position. The Company

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Summary of Significant Accounting Policies	2.Summary of Significant Accounting Policies Investments Fixed income securities include bonds, asset-backed securities ("ABS"), residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and redeemable preferred stocks. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available for sale and are carried at fair value. The difference between amortized cost and fair value, net of deferred income taxes, certain life and annuity deferred policy acquisition costs ("DAC"), certain deferred sales inducement costs ("DSI") and certain reserves for life-contingent contract benefits, is reflected as a component of accumulated other comprehensive income. Cash received from calls, principal payments and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Consolidated Statements of Cash Flows. Equity securities primarily include common and non-redeemable preferred stocks and real estate investment trust equity investments. Common and non-redeemable preferred stocks and real estate investment trust equity investments are classified as available for sale and are carried at fair value. The difference between cost and fair value, net of deferred income taxes, is reflected as a component of accumulated other comprehensive income. Mortgage loans are carried at outstanding principal balances, net of unamortized premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. Valuation allowances for impaired loans reduce the carrying value to the fair value of the collateral or the present value of the loan's expected future repayment cash flows discounted at the loan's original effective interest rate. Investments in limited partnership interests, including interests in limited liability companies, private equity/debt funds, real estate funds and hedge funds, where the Company's interest is so minor that it exercises virtually no influence over operating and financial policies, are accounted for in accordance with the cost method of accounting; otherwise, investments in limited partnership interests are accounted for in accordance with the equity method of accounting. Short-term investments, including money market funds, commercial paper and other short-term investments, are carried at fair value. Other investments consist primarily of policy loans and bank loans. Policy loans are carried at the respective unpaid principal balances. Bank loans are comprised primarily of senior secured corporate loans which are carried at amortized cost. Investment income consists primarily of interest and dividends, income from certain limited partnership interests and income from certain derivative transactions. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for certain asset-backed securities, residential mortgage-backed securit

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Supplemental Cash Flow Information	3.Supplemental Cash Flow Information Non-cash investment exchanges, including modifications of certain fixed income securities, mortgage loans and other investments, as well as mergers completed with equity securities and limited partnerships, totaled $485million, $37million and $126million for the years ended December31, 2009, 2008 and 2007, respectively. Liabilities for collateral received in conjunction with the Company's securities lending and for funds received from the Company's security repurchase business activities were $449million, $320million and $3.39billion at December31, 2009, 2008 and 2007, respectively, and are reported in other liabilities and accrued expenses in the Consolidated Statements of Financial Position. Obligations to return cash collateral for over-the-counter ("OTC") derivatives were $209million, $20million and $72million at December31, 2009, 2008 and 2007, respectively, and are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which for the years ended December31 are as follows: ($ in millions) 2009 2008 2007 Net change in proceeds managed Net change in fixed income securities $ $ 559 $ (199 ) Net change in short-term investments (316 ) 2,562 879 Operating cash flow (used) provided (316 ) 3,121 680 Net change in cash (2 ) 3 Net change in proceeds managed $ (318 ) $ 3,121 $ 683 Net change in liabilities Liabilities for collateral and security repurchase, beginning of year $ (340 ) $ (3,461 ) $ (4,144 ) Liabilities for collateral and security repurchase, end of year (658 ) (340 ) (3,461 ) Operating cash flow provided (used) $ 318 $ (3,121 ) $ (683 )

Investments

Investments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Investments	4.Investments Fair values The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows: ($ in millions) Gross unrealized Amortized cost Fair value Gains Losses At December31, 2009 U.S. government and agencies $ 7,333 $ 219 $ (16 ) $ 7,536 Municipal 21,683 537 (940 ) 21,280 Corporate 32,770 1,192 (847 ) 33,115 Foreign government 2,906 306 (15 ) 3,197 RMBS 9,487 130 (1,630 ) 7,987 CMBS 3,511 30 (955 ) 2,586 ABS 3,514 62 (550 ) 3,026 Redeemable preferred stock 39 1 (1 ) 39 Total fixed income securities $ 81,243 $ 2,477 $ (4,954 ) $ 78,766 At December31, 2008 U.S. government and agencies $ 3,272 $ 963 $ (1 ) $ 4,234 Municipal 23,565 467 (2,184 ) 21,848 Corporate 31,040 463 (3,876 ) 27,627 Foreign government 2,206 544 (75 ) 2,675 RMBS 8,010 93 (1,538 ) 6,565 CMBS 5,840 10 (2,004 ) 3,846 ABS 3,135 5 (1,353 ) 1,787 Redeemable preferred stock 36 (10 ) 26 Total fixed income securities $ 77,104 $ 2,545 $ (11,041 ) $ 68,608 Scheduled maturities The scheduled maturities for fixed income securities are as follows at December31, 2009: ($ in millions) Amortized cost Fair value Due in one year or less $ 2,264 $ 2,282 Due after one year through five years 23,558 24,096 Due after five years through ten years 14,667 15,120 Due after ten years 27,753 26,255 68,242 67,753 RMBS and ABS 13,001 11,013 Total $ 81,243 $ 78,766 Actual maturities may differ from those scheduled as a result of prepayments by the issuers. Because of the potential for prepayment on RMBS and ABS, they are not categorized by contractual maturity. The CMBS are categorized by contractual maturity because they generally are not subject to prepayment risk. Net investment income Net investment income for the years ended December31 is as follows: ($ in millions) 2009 2008 2007 Fixed income securities $ 3,998 $ 4,783 $ 5,459 Equity securities 80 120 114 Mortgage loans 498 618 600 Limited partnership interests 17 62 293 Short-term investments 27 195 221 Other (10 ) 54 191 Investment income, before expense 4,610 5,832 6,878 Investment expense (166 ) (210 ) (443 ) Net investment income $ 4,444 $ 5,622 $ 6,435 Realized capital gains and losses Realized capital gains and losses by security type for the years ended December31 are as follows: ($ in millions) 2009 2008 2007 Fixed incom

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fair Value of Assets and Liabilities	5. Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows: Level1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access. Level2: Assets and liabilities whose values are based on the following: (a) Quoted prices for similar assets or liabilities in active markets; (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company's estimates of the assumptions that market participants would use in valuing the assets and liabilities. The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level1 to Level2, or from Level2 to Level3. Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans, limited partnership interests, bank loans and policy loans. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to remeasurement at

Derivative Financial Instrument

Derivative Financial Instruments and Off-balance-sheet Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Derivative Financial Instruments and Off-balance-sheet Financial Instruments	6. Derivative Financial Instruments and Off-balance-sheet Financial Instruments The Company primarily uses derivatives for risk management and asset replication. In addition, the Company has derivatives embedded in non-derivative "host" contracts, which are required to be separated from the host contracts and accounted for at fair value as derivative instruments. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company's derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis. The Company does not use derivatives for trading purposes. Non-hedge accounting is generally used for "portfolio" level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. The Company primarily uses derivatives to partially mitigate potential adverse impacts from changes in risk-free interest rates, negative equity market valuations and increases in credit spreads. Property-Liability uses interest rate swaption contracts and exchange traded options on Treasury futures to offset potential declining fixed income market values resulting from potential rising interest rates. Property-Liability also uses interest rate swaps to mitigate municipal bond interest rate risk within the municipal bond portfolio. Exchange traded equity put options are utilized by Property-Liability for overall equity portfolio protection from significant declines in equity market values below a targeted level. Equity index futures are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Portfolio duration management is a risk management strategy that is principally employed by Property-Liability wherein, depending on the current portfolio duration relative to a designated target and the expectations of future interest rate movements, the Company uses financial futures and interest rate swaps to change the duration of the portfolio in order to mitigate the economic effect that interest rates would otherwise have on the fair value of its fixed income securities. Property-Liability enters into commodity-based investments through the use of excess return swaps whose return is tied to a commodity-based index. Property-Liability also uses commodity futures to periodically rebalance its exposure under commodity-indexed excess return swaps as they are very liquid and highly correlated with the commodity-based index. Property-Liability also uses futures to hedge the market risk related to deferred compensation liability contracts and forward contracts to hedge foreign currency risk. Allstate Financial uses foreign currency swaps primarily to reduce the foreign currency risk associated with issuing foreign currency denominated funding agreements and holding foreign currency denominated investments. Credit default swaps a

Reserve for Property-Liability

Reserve for Property-Liability Insurance Claims and Claims Expense
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Reserve for Property-Liability Insurance Claims and Claims Expense	7.Reserve for Property-Liability Insurance Claims and Claims Expense As described in Note2, the Company establishes reserves for claims and claims expense ("loss") on reported and unreported claims of insured losses. The Company's reserving process takes into account known facts and interpretations of circumstances and factors including the Company's experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, law changes, court decisions, changes to regulatory requirements and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported ("IBNR") losses, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management's best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in property-liability insurance claims and claims expense in the Consolidated Statements of Operations in the period such changes are determined. Activity in the reserve for property-liability insurance claims and claims expense is summarized as follows: ($ in millions) 2009 2008 2007 Balance at January1 $ 19,456 $ 18,865 $ 18,866 Less reinsurance recoverables 2,274 2,205 2,256 Net balance at January1 17,182 16,660 16,610 Incurred claims and claims expense related to: Current year 18,858 19,894 17,839 Prior years (112 ) 170 (172 ) Total incurred 18,746 20,064 17,667 Claims and claims expense paid related to: Current year 11,905 12,658 10,933 Prior years 6,995 6,884 6,684 Total paid 18,900 19,542 17,617 Net balance at December31 17,028 17,182 16,660 Plus reinsurance recoverables 2,139 2,274 2,205 Balance at December31 $ 19,167 $ 19,456 $ 18,865 Incurred claims and claims expense represents the sum of paid losses and reserve changes in the calendar year. This expense includes losses from catastrophes of

Reserve for Life-Contingent Con

Reserve for Life-Contingent Contract Benefits and Contractholder Funds
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Reserve for Life-Contingent Contract Benefits and Contractholder Funds	8.Reserve for Life-Contingent Contract Benefits and Contractholder Funds At December31, the reserve for life-contingent contract benefits consists of the following: ($ in millions) 2009 2008 Immediate fixed annuities: Structured settlement annuities $ 6,406 $ 6,628 Other immediate fixed annuities 2,048 2,106 Traditional life insurance 2,850 2,723 Accident and health 1,514 1,355 Other 92 69 Total reserve for life-contingent contract benefits $ 12,910 $ 12,881 The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits: Product Mortality Interest rate Estimation method Structured settlement annuities U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy Interest rate assumptions range from 1.3% to 9.9% Present value of contractually specified future benefits Other immediate fixedannuities 1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; 1983 individual annuity mortality table with internal modifications Interest rate assumptions range from 1.0% to 11.5% Present value of expected future benefits based on historical experience Traditional life insurance Actual company experience plus loading Interest rate assumptions range from 4.0% to 11.3% Net level premium reserve method using the Company's withdrawal experience rates Accident and health Actual company experience plus loading Unearned premium; additional contract reserves for mortality risk Other: Variable annuity guaranteed minimum death benefits(1) 100% of Annuity 2000 mortality table Interest rate assumptions range from 4.5% to 5.5% Projected benefit ratio applied to cumulative assessments (1) In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential Financial,Inc. and its subsidiary, The Prudential Insurance Company of America (collectively "Prudential"). To the extent that unrealized gains on fixed income securities would result in a premium deficiency had those gains actually been realized, a premium deficiency reserve is recorded for certain immediate annuities with life contingencies. A liability of $378million is included in the reserve for life-contingent contract benefits with respect to this deficiency as of December31, 2008. The offset to this liability is recorded as a reduction of the unrealized net capital gains included in accumulated other comprehensive income. The liability is zero as of December31, 2009. At December31, contractholder funds consist of the following: ($ in millions) 2009 2008 Interest-sensitive life insurance $ 10,276 $ 9,957 Investment contracts: Fixed annuities 36,063 37,660 Funding agreements backing medium-te

Reinsurance

Reinsurance
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Reinsurance	9.Reinsurance The effects of reinsurance on property-liability insurance premiums written and earned and life and annuity premiums and contract charges for the years ended December31 are as follows: ($ in millions) 2009 2008 2007 Property-liability insurance premiums written Direct $ 26,980 $ 27,667 $ 28,423 Assumed 41 85 59 Ceded (1,050 ) (1,168 ) (1,299 ) Property-liability insurance premiums written, net of reinsurance $ 25,971 $ 26,584 $ 27,183 Property-liability insurance premiums earned Direct $ 27,200 $ 28,021 $ 28,529 Assumed 50 85 60 Ceded (1,056 ) (1,139 ) (1,356 ) Property-liability insurance premiums earned, net of reinsurance $ 26,194 $ 26,967 $ 27,233 Life and annuity premiums and contract charges Direct $ 2,757 $ 2,754 $ 2,788 Assumed 39 41 44 Ceded (838 ) (900 ) (966 ) Life and annuity premiums and contract charges, net of reinsurance $ 1,958 $ 1,895 $ 1,866 Property-Liability The Company purchases reinsurance after evaluating the financial condition of the reinsurer, as well as the terms and price of coverage. Developments in the insurance and reinsurance industries have fostered a movement to segregate asbestos, environmental and other discontinued lines exposures into separate legal entities with dedicated capital. Regulatory bodies in certain cases have supported these actions. The Company is unable to determine the impact, if any, that these developments will have on the collectability of reinsurance recoverables in the future. Property-Liability reinsurance recoverable Total amounts recoverable from reinsurers at December31, 2009 and 2008 were $2.21billion and $2.35billion, respectively, including $72million and $78million, respectively, related to property-liability losses paid by the Company and billed to reinsurers, and $2.14billion and $2.27billion, respectively, estimated by the Company with respect to ceded unpaid losses (including IBNR), which are not billable until the losses are paid. With the exception of the recoverable balances from the Michigan Catastrophic Claim Association ("MCCA"), Lloyd's of London and other industry pools and facilities, the largest reinsurance recoverable balance the Company had outstanding was $77million and $81million from Westport Insurance Corporation (formerly Employers' Reinsurance Company) at December31, 2009 and 2008, respectively. No other amount due or estimated to be due from any single property-liability reinsurer was in excess of $37million and $56million at December31, 2009 and 2008, respectively. At December31, 2009 and 2008, Allstate Texas Lloyd's ("ATL"), a syndicate insurance company, had $32million and $66million, respectively, of reinsurance recoverable on the Texas excess catastrophe loss treaty. In 2009 and 2008, the recoverable balance was primarily related to losses incurred from Hurricane Ike which occurred in 2008. ATL ce

Deferred Policy Acquisition and

Deferred Policy Acquisition and Sales Inducement Costs
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Deferred Policy Acquisition and Sales Inducement Costs	10.Deferred Policy Acquisition and Sales Inducement Costs Deferred policy acquisition costs for the years ended December31 are as follows: ($ in millions) 2009 Allstate Financial Property- Liability Total Balance, beginning of year $ 7,089 $ 1,453 $ 8,542 Impact of adoption of new OTTI accounting guidance before unrealized impact(1) (176 ) (176 ) Impact of adoption of new OTTI accounting guidance effect of unrealized capital gains and losses(2) 176 176 Acquisition costs deferred 495 3,746 4,241 Amortization charged to income (965 ) (3,789 ) (4,754 ) Effect of unrealized gains and losses (2,559 ) (2,559 ) Balance, end of year $ 4,060 $ 1,410 $ 5,470 2008 Allstate Financial Property- Liability Total Balance, beginning of year $ 4,291 $ 1,477 $ 5,768 Acquisition costs deferred 684 3,951 4,635 Amortization charged to income (704 ) (3,975 ) (4,679 ) Effect of unrealized gains and losses 2,818 2,818 Balance, end of year $ 7,089 $ 1,453 $ 8,542 2007 Allstate Financial Property- Liability Total Balance, beginning of year $ 3,848 $ 1,484 $ 5,332 Impact of adoption of new internal replacements accounting guidance(3) (11 ) (11 ) Acquisition costs deferred 635 4,114 4,749 Amortization charged to income (583 ) (4,121 ) (4,704 ) Effect of unrealized gains and losses 402 402 Balance, end of year $ 4,291 $ 1,477 $ 5,768 (1) The adoption of new OTTI accounting guidance on April1, 2009 resulted in an adjustment to DAC to reverse previously recorded DAC accretion related to realized capital losses that were reclassified to other comprehensive income upon adoption. (2) The adoption of new OTTI accounting guidance resulted in an adjustment to DAC due to the change in unrealized capital gains and losses that occurred upon adoption on April1, 2009 when previously recorded realized capital losses were reclassified to other comprehensive income. The adjustment was recorded as an increase of the DAC balance and unrealized capital gains and losses. (3) The adoption of new accounting guidance related to internal replacements resulted in a $11million adjustment to unamortized DAC related to the impact on future estimated gross profits from the changes in accounting for certain costs associated with contract continuations that no longer qualify for deferral. DSI activity for Allstate Financial, which primarily relates to fixed annuities, for the years ended December31 was as follows: ($ in millions) 2009 2008 2007 Balance, beginning of year $ 453 $ 295 $ 225 Impact of adoption of new OTTI accounting guidance before unrealized impact(1) (35 ) Impact of adoption of new OTTI accounting guidance effect of unrealized capital gains and losses(2) 35

Capital Structure

Capital Structure
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Capital Structure	11.Capital Structure Debt outstanding Total debt outstanding at December31 consisted of the following: ($ in millions) 2009 2008 7.20% Senior Notes, due 2009(1) $ $ 750 6.125% Senior Notes, due 2012(1) 350 350 7.50% Debentures, due 2013 250 250 5.00% Senior Notes, due 2014(1) 650 650 6.20% Senior Notes, due 2014(1) 300 6.75% Senior Debentures, due 2018 250 250 7.45% Senior Notes, due 2019(1) 700 6.125% Senior Notes, due 2032(1) 250 250 5.350% Senior Notes due 2033(1) 400 400 5.55% Senior Notes due 2035(1) 800 800 5.95% Senior Notes, due 2036(1) 650 650 6.90% Senior Debentures, due 2038 250 250 6.125% Junior Subordinated Debentures, due 2067 500 500 6.50% Junior Subordinated Debentures, due 2067 500 500 Synthetic lease VIE obligations, floating rates, due 2011 42 40 Federal Home Loan Bank ("FHLB") advances, due 2018 18 19 Total long-term debt 5,910 5,659 Short-term debt(2) Total debt $ 5,910 $ 5,659 (1) Senior Notes are subject to redemption at the Company's option in whole or in part at any time at the greater of either 100% of the principal amount plus accrued and unpaid interest to the redemption date or the discounted sum of the present values of the remaining scheduled payments of principal and interest and accrued and unpaid interest to the redemption date. (2) The Company classifies any borrowings, which have a maturity of twelve months or less at inception as short-term debt. Total debt outstanding by maturity at December31 consisted of the following: ($ in millions) 2009 2008 Due within one year or less $ $ 750 Due after one year through 5years 1,592 640 Due after 5years through 10years 968 919 Due after 10years through 20years Due after 20years 3,350 3,350 Total debt $ 5,910 $ 5,659 In May 2009, the Company issued $300million of 6.20% Senior Notes due 2014 and $700million of 7.45% Senior Notes due 2019, utilizing the registration statement filed with the Securities and Exchange Commission ("SEC") on May8, 2009. The proceeds of this issuance were used for general corporate purposes, as well as to facilitate the repayment of the $750million of 7.20% Senior Notes that matured on December1, 2009. The Company has outstanding $500million of SeriesA 6.50% and $500million of SeriesB 6.125% Fixed-to-Floating Rate Junior Subordinated Debentures (together the "Debentures"). The scheduled maturity dates for the Debentures are May15, 2057 and May15, 2037 for SeriesA and SeriesB, respectively, with a final maturity date of May15, 2067. The Debentures may be redeemed (i)in whole or in part, at any time on or after May15, 2037 or May15, 2017 for SeriesA and SeriesB, respectively, at their principal amount plus accrued and unpaid interest to the date of redemption, or (ii)in certain circumstances, in whole or in part, prior to May15, 2037 and M

Company Restructuring

Company Restructuring
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Company Restructuring	12.Company Restructuring The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges include employee termination and relocation benefits, and post-exit rent expenses in connection with these programs, and non-cash charges resulting from pension benefit payments made to agents in connection with the 1999 reorganization of Allstate's multiple agency programs to a single exclusive agency program. In 2009, restructuring programs primarily relate to Allstate Protection's claim office consolidations, initiatives to improve efficiency and prioritization of technology operations, and reorganization of Business Insurance, as well as Allstate Financial's initiative to lower operating expenses. The expenses related to these activities are included in the Consolidated Statements of Operations as restructuring and related charges, and totaled $130million, $23million and $29million in 2009, 2008 and 2007, respectively. The following table presents changes in the restructuring liability for the year ended December31, 2009. ($ in millions) Employee costs Exit costs Total liability Balance at December31, 2008 $ 10 $ 1 $ 11 Expense incurred 109 7 116 Adjustments to liability (7 ) (7 ) Payments applied against liability (67 ) (2 ) (69 ) Balance at December31, 2009 $ 45 $ 6 $ 51 The payments applied against the liability for employee costs primarily reflect severance costs, and the payments for exit costs generally consist of post-exit rent expenses and contract termination penalties. As of December31, 2009, the cumulative amount incurred to date for active programs totaled $174million for employee costs and $45million for exit costs.

Commitments, Guarantees and Con

Commitments, Guarantees and Contingent Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Commitments, Guarantees and Contingent Liabilities	13.Commitments, Guarantees and Contingent Liabilities Leases The Company leases certain office facilities and computer equipment. Total rent expense for all leases was $267million, $294million and $304million in 2009, 2008 and 2007, respectively. Minimum rental commitments under noncancelable capital and operating leases with an initial or remaining term of more than one year as of December31, 2009 are as follows: ($ in millions) Capital leases Operating leases 2010 $ 12 $ 205 2011 5 157 2012 5 119 2013 5 74 2014 6 55 Thereafter 17 92 Total $ 50 $ 702 Present value of minimum capital lease payments $ 37 State facility assessments The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. Because of the Company's participation, it may be exposed to losses that surpass the capitalization of these facilities and/or to assessments from these facilities. Castle Key is subject to assessments from Citizens Property Insurance Corporation in the state of Florida ("FL Citizens"), which was initially created by the state of Florida to provide insurance to property owners unable to obtain coverage in the private insurance market. Effective July1, 2008, FL Citizens, at the discretion and direction of its Board of Governors ("FL Citizens Board"), can levy a regular assessment on assessable insurers and assessable insureds for a deficit in any calendar year up to a maximum of the greater of 6% of the deficit or 6% of Florida property premiums industry-wide for the prior year. Prior to July 2008, the assessment rate was 10%. The base of assessable insurers includes all property and casualty premiums in the state, except workers' compensation, medical malpractice, accident and health insurance and policies written under the NFIP. An insurer may recoup a regular assessment through a surcharge to policyholders. In order to recoup this assessment, an insurer must file for a policy surcharge with the Florida Office of Insurance Regulation ("FL OIR") at least fifteen days prior to imposing the surcharge on policies. If a deficit remains after the regular assessment, FL Citizens can also levy emergency assessments in the current and subsequent years. Companies are required to collect the emergency assessments directly from residential property policyholders and remit to FL Citizens as collected. FL Citizens reported losses from Hurricane Wilma in 2005, which followed a deficit for the 2004 plan year. The FL Citizens Board certified the 2005 FL Citizens deficit at $1.73billion of which $920million was to be funded through a regular assessment. The Company paid its portion of the deficit assessment totaling $14million during 2006 and has recouped $7million as of December31, 2009. The Company expects to continue recoupment in 2010. The remainder of the deficit was funded by bonds issued in 2006.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Income Taxes	14.Income Taxes The Company and its domestic subsidiaries filea consolidated federal income tax return. Tax liabilities and benefits realized by the consolidated group are allocated as generated by the respective entities. The Internal Revenue Service ("IRS") is currently examining the Company's 2007 and 2008 federal income tax returns. The IRS has completed its examination of the Company's federal income tax returns for 2005-2006 and the case is under consideration at the IRS Appeals Office. The Company's tax years prior to 2005 have been examined by the IRS and the statute of limitations has expired on those years. Any adjustments that may result from IRS examinations of tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company. The reconciliation of the change in the amount of unrecognized tax benefits for the years ended December31 is as follows: ($ in millions) 2009 2008 2007 Balance beginning of year $ 21 $ 76 $ 48 Increase for tax positions taken in a prior year 1 2 Decrease for tax positions taken in a prior year Increase for tax positions taken in the current year 1 4 15 Decrease for tax positions taken in the current year (Decrease) increase for settlements (60 ) 11 Reductions due to lapse of statute of limitations Balance end of year $ 22 $ 21 $ 76 The Company believes it is reasonably possible that the liability balance will be reduced by $22million within the next twelve months upon the resolution of an outstanding issue resulting from the 2005-2006 IRS examination. Because of the impact of deferred tax accounting, recognition of previously unrecognized tax benefits is not expected to impact the Company's effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. The Company recorded $0.1million and $5million of interest income and $1million of interest expense relating to unrecognized tax benefits in income tax expense in 2009, 2008 and 2007, respectively. At December31, 2009, there was no interest accrued with respect to unrecognized tax benefits. At December31, 2008, total interest accrued with respect to unrecognized tax benefits was $0.1million. No amounts have been accrued for penalties. The components of the deferred income tax assets and liabilities at December31 are as follows: ($ in millions) 2009 2008 Deferred assets Unearned premium reserves $ 642 $ 650 Unrealized net capital losses 466 1,994 Life and annuity reserves 375 376 Difference in tax bases of invested assets 346 670 Discount on loss reserves 328 336 Pension 289 328 Accrued compensation 199 204 Other postretirement benefits 173 230 Other assets 227 430 Total deferred assets 3,045 5,218 Valuation allowance (11 ) (49 ) Net deferred assets 3,034

Statutory Financial Information

Statutory Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Statutory Financial Information	15.Statutory Financial Information Allstate's domestic property-liability and life insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. All states require domiciled insurance companies to prepare statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition and certain sales inducement costs to expense as incurred, establishing life insurance reserves based on different actuarial assumptions, and valuing certain investments and establishing deferred taxes on a different basis. Statutory net income and capital and surplus of Allstate's domestic insurance subsidiaries, determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities are as follows: ($ in millions) Net income Capital and surplus(1) 2009 2008 2007 2009 2008 Amounts by major business type: Property-Liability $ 1,318 $ 624 $ 5,062 $ 11,679 $ 9,878 Allstate Financial (911 ) (1,983 ) 186 3,588 3,335 Amount per statutory accounting practices $ 407 $ (1,359 ) $ 5,248 $ 15,267 $ 13,213 (1) The Property-Liability statutory capital and surplus balances exclude wholly-owned subsidiaries included in the Allstate Financial segment. There are no permitted practices utilized as of December31, 2009. As of December31, 2008, the commissioner of the Illinois Department of Insurance permitted ALIC to record its market value adjusted annuity assets and liabilities at book value pursuant to the Illinois Insurance Code which provides an alternative from market value accounting with approval of the commissioner. This accounting practice increased statutory capital and surplus by $1.24billion at December31, 2008 over what it would have been had the permitted practice not been allowed. As of December31, 2008, the commissioner of the Illinois Department of Insurance permitted AIC and ALIC to admit deferred tax assets that were expected to be realized within three years of the balance sheet date limited to 15% of statutory capital and surplus, instead of deferred tax assets that were expected to be realized within one year of the balance sheet date limited to 10% of statutory capital and surplus. This accounting practice increased statutory capital and surplus by $365million at December31, 2008 over what it would have been had the permitted practice not been allowed. Dividends The ability of the

Benefit Plans

Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Benefit Plans	16.Benefit Plans Pension and other postretirement plans Defined benefit pension plans cover most full-time employees, certain part-time employees and employee-agents. Benefits under the pension plans are based upon the employee's length of service and eligible annual compensation. A cash balance formula was added to the Allstate Retirement Plan effective January1, 2003. All eligible employees hired before August1, 2002 were provided with a one-time opportunity to choose between the cash balance formula and the final average pay formula. The cash balance formula applies to all eligible employees hired after August1, 2002. The Company also provides certain health care subsidies for eligible employees hired before January1, 2003 when they retire and their eligible dependents and certain life insurance benefits for eligible employees hired before January1, 2003 when they retire ("postretirement benefits"). Qualified employees may become eligible for these benefits if they retire in accordance with the Company's established retirement policy and are continuously insured under the Company's group plans or other approved plans in accordance with the plan's participation requirements. The Company shares the cost of retiree medical benefits with non Medicare-eligible retirees based on years of service, with the Company's share being subject to a 5% limit on annual medical cost inflation after retirement. During 2009, the Company decided to change its approach for delivering benefits to Medicare-eligible retirees. The Company will no longer offer medical benefits for Medicare-eligible retirees but will instead provide a fixed Company contribution (based on years of service and other factors), which is not subject to adjustments for inflation. The Company has reserved the right to modify or terminate its benefit plans at any time and for any reason. Obligations and funded status The Company calculates benefit obligations based upon generally accepted actuarial methodologies using the projected benefit obligation ("PBO") for pension plans and the accumulated postretirement benefit obligation ("APBO") for other postretirement plans. The determination of pension costs and other postretirement obligations as of December31, 2009 and 2008 are determined using a December31 measurement date. The benefit obligations represent the actuarial present value of all benefits attributed to employee service rendered as of the measurement date. The PBO is measured using the pension benefit formula and assumptions as to future compensation levels. A plan's funded status is calculated as the difference between the benefit obligation and the fair value of plan assets. The Company's funding policy for the pension plans is to make annual contributions at a level that is in accordance with regulations under the Internal Revenue Code ("IRC") and generally accepted actuarial principles. The Company's postretirement benefits plans are not funded. The components of the plans' funded status that are reflected in the Consolidated Statements of Financial Position as of December31 are as follows: ($ in millions) Pension benefits

Equity Incentive Plans

Equity Incentive Plans
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Equity Incentive Plans	17.Equity Incentive Plans The Company currently has two equity incentive plans that permit it to grant nonqualified stock options, incentive stock options, restricted or unrestricted shares of the Company's stock and restricted stock units to certain employees and directors of the Company. The total compensation expense related to equity awards was $74million, $85million and $90million and the total income tax benefits were $25million, $29million and $30million for the years ended December31, 2009, 2008 and 2007, respectively. Total cash received from the exercise of options was $3million, $33million and $109million for the years ended December31, 2009, 2008 and 2007, respectively. Total tax benefit realized on options exercised and stock unrestricted was $3million, $12million and $43million for the years ended December31, 2009, 2008 and 2007, respectively. The Company records compensation expense related to awards under these plans over the vesting period of each grant. The Company records compensation expense for employees eligible for continued vesting upon retirement over the vesting period to the date that the employee is eligible for retirement. As of December31, 2009, total unrecognized compensation cost related to all nonvested awards was $114million, of which $73million related to nonqualified stock options which are expected to be recognized over the weighted average vesting period of 2.50years and $41million is related to restricted stock units which are expected to be recognized over the weighted average vesting period of 2.49years. Options are granted under the plans at exercise prices equal to the fair value of the Company's common stock on the applicable grant date. The options granted under the Allstate plans generally vest ratably over a four-year period. For directors, vesting is generally over a three-year period. The options granted may be exercised once vested and will expire ten years after the date of grant unless the employee or director retires. After retirement, employee stock options vest as scheduled. For directors, vesting accelerates to the date of retirement. When the options become vested, they may be exercised on or before the earlier of the option expiration date or the fifth anniversary of the employee's or director's retirement. Restricted stock and restricted stock units generally vest and unrestrict in full on the fourth anniversary of the grant date, except for directors which vest immediately and unrestrict immediately after leaving the board. The awards are subject to forfeiture upon termination. For terminations due to retirement, shares continue to unrestrict as provided for in the original grant. A total of 71.0million shares of common stock were authorized to be used for awards under the plans, subject to adjustment in accordance with the plans' terms. At December31, 2009, 25.1million shares were reserved and remained available for future issuance under these plans. The Company uses its treasury shares for these issuances. The fair value of each option grant is estimated on the date of grant using a binomial lattice model. The Company uses historical data to estimate option exerc

Business Segments

Business Segments
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business Segments	18.Business Segments Allstate management is organized around products and services, and this structure is considered in the identification of its four reportable segments. These segments and their respective operations are as follows: Allstate Protection sells principally private passenger auto and homeowners insurance in the United States and Canada. Revenues from external customers generated outside the United States were $619million, $665million and $668million for the years ended December31, 2009, 2008 and 2007, respectively. The Company evaluates the results of this segment based upon underwriting results. Discontinued Lines and Coverages consists of business no longer written by Allstate, including results from asbestos, environmental and other discontinued lines claims, and certain commercial and other businesses in run-off. This segment also includes the historical results of the commercial and reinsurance businesses sold in 1996. The Company evaluates the results of this segment based upon underwriting results. Allstate Financial sells life insurance, retirement and investment products and voluntary accident and health insurance to individual and institutional customers. The principal individual products are fixed annuities; interest-sensitive, traditional and variable life insurance; and voluntary accident and health insurance. The institutional product line consists primarily of funding agreements sold to unaffiliated trusts that use them to back medium-term notes issued to institutional and individual investors. Banking products and services are also offered to customers through the Allstate Bank. Revenues from external customers generated outside the United States were immaterial with respect to Allstate Financial total revenues for the years ended December31, 2009, 2008 and 2007. The Company evaluates the results of this segment based upon operating income. Corporate and Other comprises holding company activities and certain non-insurance operations. Allstate Protection and Discontinued Lines and Coverages comprise Property-Liability. The Company does not allocate Property-Liability investment income, realized capital gains and losses, or assets to the Allstate Protection and Discontinued Lines and Coverages segments. Management reviews assets at the Property-Liability, Allstate Financial, and Corporate and Other levels for decision-making purposes. The accounting policies of the business segments are the same as those described in Note2. The effects of certain inter-segment transactions are excluded from segment performance evaluation and therefore are eliminated in the segment results. Measuring segment profit or loss The measure of segment profit or loss used by Allstate's management in evaluating performance is underwriting income (loss) for the Allstate Protection and Discontinued Lines and Coverages segments and operating income (loss) for Allstate Financial and Corporate and Other segments. A reconciliation of these measures to net income is provided below. Underwriting income (loss) is calculated as premiums earned, less claims and claims expenses ("losses"), amortization of DAC, operatin

Other Comprehensive Income

Other Comprehensive Income
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Comprehensive Income	19.Other Comprehensive Income The components of other comprehensive income (loss) on a pre-tax and after-tax basis for the years ended December31 are as follows: ($ in millions) 2009 2008 2007 Pre- Tax Tax After- tax Pre- tax Tax After- tax Pre- tax Tax After- tax Unrealized net holding gains (losses) arising during the period, net of related offsets $ 5,015 $ (1,754 ) $ 3,261 $ (10,567 ) $ 3,660 $ (6,907 ) $ (612 ) $ 214 $ (398 ) Less: reclassification adjustment of realized capital gains and losses (284 ) 99 (185 ) (3,059 ) 1,228 (2,281 ) 1,212 (424 ) 788 Unrealized net capital gains and losses 5,299 (1,853 ) 3,446 (7,058 ) 2,432 (4,626 ) (1,824 ) 638 (1,186 ) Unrealized foreign currency translation adjustments 63 (22 ) 41 (114 ) 40 (74 ) 82 (29 ) 53 Unrecognized pension and other postretirement benefit cost (292 ) 78 (214 ) (1,103 ) 379 (724 ) 1,150 (385 ) 765 Other comprehensive income (loss) $ 5,070 $ (1,797 ) $ 3,273 $ (8,275 ) $ 2,851 $ (5,424 ) $ (592 ) $ 224 $ (368 )

Quarterly Results

Quarterly Results (unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Quarterly Results (unaudited)	20.Quarterly Results (unaudited) ($ in millions, except per share data) FirstQuarter SecondQuarter ThirdQuarter FourthQuarter 2009 2008 2009 2008 2009 2008 2009 2008 Revenues $ 7,883 $ 8,087 $ 8,490 $ 7,418 $ 7,582 $ 7,320 $ 8,058 $ 6,569 Net (loss) income (274 ) 348 389 25 221 (923 ) 518 (1,129 ) Net (loss) income earnings per share Basic (0.51 ) 0.62 0.72 0.05 0.41 (1.70 ) 0.96 (2.10 ) Net (loss) income earnings per share Diluted (0.51 ) 0.62 0.72 0.05 0.41 (1.70 ) 0.96 (2.10 )

SCHEDULE I - SUMMARY OF INVESTM

SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedule
SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES	THE ALLSTATE CORPORATION AND SUBSIDIARIES SCHEDULE I SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2009 ($ in millions) Cost/ amortized cost Fair value Amount at which shown in the Balance Sheet Type of investment Fixed Maturities: Bonds: United States government, government agencies and authorities $ 7,333 $ 7,536 $ 7,536 States, municipalities and political subdivisions 21,683 21,280 21,280 Foreign governments 2,906 3,197 3,197 Public utilities 5,737 5,948 5,948 Convertibles and bonds with warrants attached 1,410 1,409 1,409 All other corporate bonds 25,638 25,774 25,774 Asset-backed securities 3,514 3,026 3,026 Residential mortgage-backed securities 9,487 7,987 7,987 Commercial mortgage-backed securities 3,511 2,586 2,586 Redeemable preferred stocks 24 23 23 Total fixed maturities 81,243 $ 78,766 78,766 Equity Securities: Common Stocks: Public utilities 149 $ 149 149 Banks, trusts and insurance companies 586 590 590 Industrial, miscellaneous and all other 3,982 4,163 4,163 Nonredeemable preferred stocks 128 122 122 Total equity securities 4,845 $ 5,024 5,024 Mortgage loans on real estate 7,935 $ 6,336 7,935 Real estate acquired in satisfaction of debt 10 10 Policy loans 1,131 1,131 Derivative instruments 550 $ 548 548 Limited partnership interests 2,744 2,744 Other long-term investments 619 619 Short-term investments 3,056 $ 3,056 3,056 Total investments $ 102,133 $ 99,833

SCHEDULE II - CONDENSED FINANCI

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedule
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT	THE ALLSTATE CORPORATION AND SUBSIDIARIES SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF OPERATIONS ($ in millions) Year ended December31, 2009 2008 2007 Revenues Investment income, less investment expense $ 10 $ 42 $ 48 Realized capital gains and losses 1 1 1 Other income 21 11 112 32 54 161 Expenses Interest expense 389 347 328 Other operating expenses 18 16 36 407 363 364 Loss from operations before income tax benefit and equity in net income (loss) of subsidiaries (375 ) (309 ) (203 ) Income tax benefit (144 ) (120 ) (118 ) Loss before equity in net income (loss) of subsidiaries (231 ) (189 ) (85 ) Equity in net income (loss) of subsidiaries 1,085 (1,490 ) 4,721 Net income (loss) 854 (1,679 ) 4,636 Other comprehensive income (loss), after-tax Changes in: Unrealized net capital gains and losses 3,446 (4,626 ) (1,186 ) Unrealized foreign currency translation adjustments 41 (74 ) 53 Unrecognized pension and other postretirement benefit cost (214 ) (724 ) 765 Other comprehensive income (loss), after-tax 3,273 (5,424 ) (368 ) Comprehensive income (loss) $ 4,127 $ (7,103 ) $ 4,268 See accompanying notes to condensed financial information and notes to Consolidated Financial Statements. THE ALLSTATE CORPORATION AND SUBSIDIARIES SCHEDULE II (CONTINUED) CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF FINANCIAL POSITION ($ in millions, except par value data) December31, 2009 2008 Assets Investments in subsidiaries $ 21,152 $ 16,268 Fixed income securities, at fair value (amortized cost $807 and $25) 808 25 Short-term investments, at fair value (amortized cost $728 and $1,884) 728 1,884 Receivable from subsidiaries 299 369 Other assets 356 182 Total assets $ 23,343 $ 18,728 Liabilities Long-term debt $ 5,850 $ 5,600 Postretirement benefit obligation 404 Deferred compensation 219 199 Dividends payable to shareholders 108 221 Other liabilities 70 67 Total liabilities 6,651 6,087 Shareholders' equity Preferred stock, $1 par value, 25million shares authorized, none issued Common stock, $.01 par value, 2.0billion shares authorized and 900million issued, 537million and 536million shares outstanding 9 9 Additional capital paid-in 3,172 3,130 Retained income 31,492 30,207 Deferred ESOP expense (47 ) (49 ) Treasury stock, at cost (363million and 364million shares) (15,828 ) (15,855 ) Accumulated other compr

SCHEDULE III - SUPPLEMENTARY IN

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedule
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION	THE ALLSTATE CORPORATION AND SUBSIDIARIES SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION ($ in millions) At December31, For the year ended December31, Segment Deferred policy acquisition costs Reserves for claims and claims expense, contract benefits and contractholder funds Unearned premiums Premium revenue and contract charges Net investment income(1) Claims and claims expense, contract benefits and interest credited to contractholders Amortization of deferred policy acquisition costs Other operating costs and expenses Premiums written (excluding life) 2009 Property-Liability operations Allstate Protection $ 1,410 $ 16,574 $ 9,780 $ 26,195 $ 18,722 $ 3,789 $ 2,657 $ 25,972 Discontinued Lines and Coverages 2,593 (1 ) 24 7 (1 ) Total Property-Liability 1,410 19,167 9,780 26,194 $ 1,328 18,746 3,789 2,664 25,971 Allstate Financial operations 4,060 65,492 42 1,958 3,064 3,743 965 455 465 Corporate and other 52 410 Total $ 5,470 $ 84,659 $ 9,822 $ 28,152 $ 4,444 $ 22,489 $ 4,754 $ 3,529 $ 26,436 2008 Property-Liability operations Allstate Protection $ 1,453 $ 16,719 $ 9,980 $ 26,967 $ 20,046 $ 3,975 $ 2,757 $ 26,584 Discontinued Lines and Coverages 2,737 18 7 Total Property-Liability 1,453 19,456 9,980 26,967 $ 1,674 20,064 3,975 2,764 26,584 Allstate Financial operations 7,089 71,294 44 1,895 3,811 4,023 704 521 419 Corporate and other 137 362 Total $ 8,542 $ 90,750 $ 10,024 $ 28,862 $ 5,622 $ 24,087 $ 4,679 $ 3,647 $ 27,003 2007 Property-Liability operations Allstate Protection $ 1,477 $ 15,901 $ 10,363 $ 27,232 $ 17,620 $ 4,121 $ 2,653 $ 27,183 Discontinued Lines and Coverages 2,964 1 47 8 Total Property-Liability 1,477 18,865 10,363 27,233 $ 1,972 17,667 4,121 2,661 27,183 Allstate Financial operations 4,291 75,187 46 1,866 4,297 4,270 583 443 383 Corporate and other 166 361 Total $ 5,768 $ 94,052 $ 10,409 $ 29,099 $ 6,435 $ 21,937 $ 4,704 $ 3,465 $ 27,566 (1) A

SCHEDULE IV - REINSURANCE

SCHEDULE IV - REINSURANCE
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedule
SCHEDULE IV - REINSURANCE	THE ALLSTATE CORPORATION AND SUBSIDIARIES SCHEDULE IV REINSURANCE ($ in millions) Gross amount Ceded to other companies(1) Assumed from other companies Net amount Percentage of amount assumed to net Year ended December31, 2009 Life insurance in force $ 525,381 $ 253,650 $ 10,230 $ 281,961 3.6 % Premiums and contract charges: Life insurance $ 2,142 $ 682 $ 38 $ 1,498 2.5 % Accident-health insurance 615 156 1 460 0.2 % Property-liability insurance 27,200 1,056 50 26,194 0.2 % Total premiums and contract charges $ 29,957 $ 1,894 $ 89 $ 28,152 0.3 % Year ended December31, 2008 Life insurance in force $ 520,762 $ 251,655 $ 10,935 $ 280,042 3.9 % Premiums and contract charges: Life insurance $ 2,184 $ 743 $ 41 $ 1,482 2.8 % Accident-health insurance 570 157 413 % Property-liability insurance 28,021 1,139 85 26,967 0.3 % Total premiums and contract charges $ 30,775 $ 2,039 $ 126 $ 28,862 0.4 % Year ended December31, 2007 Life insurance in force $ 505,014 $ 246,590 $ 12,611 $ 271,035 4.7 % Premiums and contract charges: Life insurance $ 2,255 $ 813 $ 43 $ 1,485 2.9 % Accident-health insurance 533 153 1 381 0.3 % Property-liability insurance 28,529 1,356 60 27,233 0.2 % Total premiums and contract charges $ 31,317 $ 2,322 $ 104 $ 29,099 0.4 % (1) No reinsurance or coinsurance income was netted against premium ceded in 2009, 2008 or 2007.

SCHEDULE - VALUATION ALLOWANCES

SCHEDULE - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedule
SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS	THE ALLSTATE CORPORATION AND SUBSIDIARIES SCHEDULE V VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS ($ in millions) Additions Description Balance at beginning of period Charged to costs and expenses Other additions Deductions Balance at end of period Year ended December31, 2009 Allowance for reinsurance recoverables $ 168 $ $ $ 26 $ 142 Allowance for premium installment receivable 70 125 118 77 Allowance for deferred tax assets 49 250 288 11 Allowance for estimated losses on mortgage loans 4 97 6 95 Year ended December31, 2008 Allowance for reinsurance recoverables $ 185 $ $ $ 17 $ 168 Allowance for premium installment receivable 68 89 87 70 Allowance for deferred tax assets 6 43 49 Allowance for estimated losses on mortgage loans 4 4 Year ended December31, 2007 Allowance for reinsurance recoverables $ 235 $ 6 $ $ 56 $ 185 Allowance for premium installment receivable 56 83 71 68 Allowance for deferred tax assets 5 1 6

SCHEDULE VI - SUPPLEMENTARY INF

SCHEDULE VI - SUPPLEMENTARY INFORMATION CONCERNING CONSOLIDATED PROPERTY-CASUALTY INSURANCE OPERATIONS
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedule
SCHEUDLE VI - SUPPLEMENTARY INFORMATION CONCERNING CONSOLIDATED PROPERTY-CASUALTY INSURANCE OPERATIONS	THE ALLSTATE CORPORATION AND SUBSIDIARIES SCHEDULE VI SUPPLEMENTARY INFORMATION CONCERNING CONSOLIDATED PROPERTY-CASUALTY INSURANCE OPERATIONS ($ in millions) At December31, 2009 2008 2007 Deferred policy acquisition costs $ 1,410 $ 1,453 $ 1,477 Reserves for insurance claims and claims expense 19,167 19,456 18,865 Unearned premiums 9,780 9,980 10,363 Year Ended December31, 2009 2008 2007 Earned premiums $ 26,194 $ 26,967 $ 27,233 Net investment income 1,328 1,674 1,972 Claims and claims adjustment expense incurred Current year 18,858 19,894 17,839 Prior years (112 ) 170 (172 ) Amortization of deferred policy acquisition costs 3,789 3,975 4,121 Paid claims and claims adjustment expense 18,900 19,542 17,617 Premiums written 25,971 26,584 27,183

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 01, 2010	Jun. 30, 2009
Document and Entity Information
Entity Registrant Name	ALLSTATE CORP
Entity Central Index Key	0000899051
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			13.01
Entity Common Stock, Shares Outstanding		536,571,250