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Exhibit 99.2

THE ALLSTATE CORPORATION

Investor Supplement

Fourth Quarter 2012

The consolidated financial statements and financial exhibits included herein are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto included in the most recent Annual Report on Form 10-K, the Current Report on Form 8-K filed on May 2, 2012 (retrospective adoption of deferred acquisition costs “DAC”) and Quarterly Reports on Form 10-Q. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles (“non-GAAP”) are denoted with an asterisk (*) the first time they appear. These measures are defined on the page “Definitions of Non-GAAP Measures” and are reconciled to the most directly comparable GAAP measure herein.

THE ALLSTATE CORPORATION

Investor Supplement - Fourth Quarter 2012

Table of Contents

	PAGE
Consolidated
Statements of Operations	1
Contribution to Income	2
Revenues	3
Statements of Financial Position	4
Book Value Per Share	5
Return on Shareholders’ Equity	6
Debt to Capital	7
Statements of Cash Flows	8
Analysis of Deferred Policy Acquisition Costs	9-10
Historical Summary of Consolidated Operating and Financial Position Data	11

Property-Liability Operations
Property-Liability Results	12
Historical Property-Liability Results	13
Underwriting Results by Area of Business	14
Historical Underwriting Results by Area of Business	15
Premiums Written by Market Segment	16
Allstate Brand Premiums Written	17
Impact of Net Rate Changes Approved on Premiums Written	18
Allstate Brand Profitability Measures	19
Encompass Brand Profitability Measures	20
Esurance Brand Profitability Measures and Statistics	21
Standard Auto Profitability Measures	22
Allstate Brand Standard Auto Loss Ratio of Top 5 States	23
Non-standard Auto Profitability Measures	24
Auto Profitability Measures	25
Homeowners Profitability Measures	26
Property-Liability Policies in Force	27
Allstate Brand Domestic Operating Measures and Statistics	28
Homeowners Supplemental Information	29
Effect of Catastrophe Losses on the Combined Ratio	30
Allstate Protection Catastrophe by Size of Event	31
Prior Year Reserve Reestimates	32
Historical Prior Year Reserve Reestimate	33
Historical Property-Liability Loss Reserves	34
Asbestos and Environmental Reserves	35

Allstate Financial Operations and Reconciliations
Allstate Financial Results	36
Historical Allstate Financial Results	37
Return on Attributed Equity	38
Premiums and Contract Charges	39
Change in Contractholder Funds	40
Analysis of Net Income	41
Allstate Financial Weighted Average Investment Spreads	42
Allstate Financial Supplemental Product Information	43

Corporate and Other Results	44

Investments
Investments	45
Investment Portfolio Details	46
Unrealized Net Capital Gains and Losses on Security Portfolio by Type	47
Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	48
Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	49
Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	50

Definitions of Non-GAAP Measures	51

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Revenues
Property-liability insurance premiums	$	6,744	$	6,697	$	6,666	$	6,630	$	6,605	$	6,432	$	6,457	$	6,448	$	26,737	$	25,942
Life and annuity premiums and contract charges		566		563		559		553		570		552		547		569		2,241		2,238
Net investment income		1,033		940		1,026		1,011		975		994		1,020		982		4,010		3,971
Realized capital gains and losses:
Total other-than-temporary impairment losses		(44)		(39)		(69)		(87)		(128)		(197)		(82)		(156)		(239)		(563)
Portion of loss recognized in other comprehensive income		(10)		(7)		19		4		4		(6)		(4)		(27)		6		(33)
Net other-than-temporary impairment losses recognized in earnings		(54)		(46)		(50)		(83)		(124)		(203)		(86)		(183)		(233)		(596)
Sales and other realized capital gains and losses		258		(26)		77		251		210		467		143		279		560		1,099
Total realized capital gains and losses		204		(72)		27		168		86		264		57		96		327		503
Total revenues		8,547		8,128		8,278		8,362		8,236		8,242		8,081		8,095		33,315		32,654

Costs and expenses
Property-liability insurance claims and claims expense		5,042		4,293		4,810		4,339		4,198		5,132		6,355		4,476		18,484		20,161
Life and annuity contract benefits		464		453		462		439		430		455		422		454		1,818		1,761
Interest credited to contractholder funds		357		215		366		378		405		405		417		418		1,316		1,645
Amortization of deferred policy acquisition costs		947		1,016		942		979		981		1,046		960		984		3,884		3,971
Operating costs and expenses		1,095		1,010		996		1,017		1,083		888		868		900		4,118		3,739
Restructuring and related charges		9		9		10		6		16		8		11		9		34		44
Interest expense		92		93		93		95		92		92		91		92		373		367
Total costs and expenses		8,006		7,089		7,679		7,253		7,205		8,026		9,124		7,333		30,027		31,688

Gain (loss) on disposition of operations		3		9		3		3		3		3		7		(20)		18		(7)

Income (loss) from operations before income tax expense (benefit)		544		1,048		602		1,112		1,034		219		(1,036)		742		3,306		959

Income tax expense (benefit)		150		325		179		346		322		44		(412)		218		1,000		172


Net income (loss)	$	394	$	723	$	423	$	766	$	712	$	175	$	(624)	$	524	$	2,306	$	787

Earnings per share: (1)

Net income (loss) per share - Basic	$	0.82	$	1.49	$	0.86	$	1.54	$	1.41	$	0.34	$	(1.19)	$	0.99	$	4.71	$	1.51
Weighted average shares - Basic		482.2		485.9		490.6		498.7		504.5		512.0		523.1		531.0		489.4		520.7

Net income (loss) per share - Diluted (2)	$	0.81	$	1.48	$	0.86	$	1.53	$	1.40	$	0.34	$	(1.19)	$	0.98	$	4.68	$	1.50
Weighted average shares - Diluted (2)		487.0		489.9		493.8		501.5		506.8		514.2		523.1		533.6		493.0		523.1

Cash dividends declared per share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.21	$	0.21	$	0.21	$	0.21	$	0.88	$	0.84

(1) In accordance with GAAP, the quarter and year-to-date per share amounts are calculated discretely. Therefore, the sum of each quarter may not equal the year-to-date amount.

(2) As a result of the net loss for the three-months ended June 30, 2011, weighted average dilutive potential common shares outstanding resulting from 2.1 million stock options and 0.5 million restricted stock units (non-participating) were not included in the computation of diluted earnings per share in that quarter, since inclusion of these securities would have an anti-dilutive effect.

THE ALLSTATE CORPORATION

CONTRIBUTION TO INCOME

($ in millions, except per share data)

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Contribution to income

Operating income (loss) before the impact of restructuring and related charges	$	295	$	723	$	438	$	714	$	746	$	85	$	(640)	$	500	$	2,170	$	691
Restructuring and related charges, after-tax		(6)		(6)		(6)		(4)		(11)		(5)		(7)		(6)		(22)		(29)

Operating income (loss) *		289		717		432		710		735		80		(647)		494		2,148		662

Realized capital gains and losses, after-tax		136		(47)		17		110		55		170		36		63		216		324
Valuation changes on embedded derivatives that are not hedged, after-tax		(6)		97		(3)		(6)		(13)		(4)		(3)		8		82		(12)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(4)		(28)		-		(10)		(16)		(65)		(5)		(22)		(42)		(108)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		4		-		-		-		-		-		3		4		3
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(7)		(8)		(9)		(9)		(8)		(8)		(10)		(9)		(33)		(35)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(16)		(18)		(16)		(31)		(42)		-		-		-		(81)		(42)
Gain (loss) on disposition of operations, after-tax		2		6		2		2		1		2		5		(13)		12		(5)

Net income (loss)	$	394	$	723	$	423	$	766	$	712	$	175	$	(624)	$	524	$	2,306	$	787

Income per share - Diluted (1) (2)
Operating income (loss) before the impact of restructuring and related charges	$	0.61	$	1.48	$	0.89	$	1.42	$	1.47	$	0.17	$	(1.22)	$	0.94	$	4.40	$	1.32
Restructuring and related charges, after-tax		(0.02)		(0.02)		(0.02)		-		(0.02)		(0.01)		(0.02)		(0.01)		(0.04)		(0.05)

Operating income (loss)		0.59		1.46		0.87		1.42		1.45		0.16		(1.24)		0.93		4.36		1.27

Realized capital gains and losses, after-tax		0.28		(0.09)		0.04		0.22		0.11		0.33		0.07		0.12		0.44		0.62
Valuation changes on embedded derivatives that are not hedged, after-tax		(0.01)		0.20		(0.01)		(0.01)		(0.03)		(0.01)		(0.01)		0.02		0.17		(0.02)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(0.01)		(0.06)		-		(0.02)		(0.03)		(0.13)		(0.01)		(0.04)		(0.09)		(0.21)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		0.01		-		-		-		-		-		-		0.01		-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(0.01)		(0.01)		(0.02)		(0.02)		(0.02)		(0.01)		(0.02)		(0.02)		(0.07)		(0.07)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(0.03)		(0.04)		(0.03)		(0.06)		(0.08)		-		-		-		(0.16)		(0.08)
Gain (loss) on disposition of operations, after-tax		-		0.01		0.01		-		-		-		0.02		(0.03)		0.02		(0.01)

Net income (loss)	$	0.81	$	1.48	$	0.86	$	1.53	$	1.40	$	0.34	$	(1.19)	$	0.98	$	4.68	$	1.50

Weighted average shares - Diluted		487.0		489.9		493.8		501.5		506.8		514.2		523.1		533.6		493.0		523.1

(1) In accordance with GAAP, the quarter and year-to-date per share amounts are calculated discretely. Therefore, the sum of each quarter may not equal the year-to-date amount.

THE ALLSTATE CORPORATION

REVENUES

($ in millions)

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Property-Liability
Property-liability insurance premiums	$	6,744	$	6,697	$	6,666	$	6,630	$	6,605	$	6,432	$	6,457	$	6,448	$	26,737	$	25,942
Net investment income		362		299		352		313		309		298		310		284		1,326		1,201
Realized capital gains and losses		143		(16)		19		189		12		24		(8)		57		335		85

Total Property-Liability revenues		7,249		6,980		7,037		7,132		6,926		6,754		6,759		6,789		28,398		27,228

Allstate Financial
Life and annuity premiums and contract charges		566		563		559		553		570		552		547		569		2,241		2,238
Net investment income		665		632		663		687		656		682		694		684		2,647		2,716
Realized capital gains and losses		56		(56)		8		(21)		68		219		62		39		(13)		388

Total Allstate Financial revenues		1,287		1,139		1,230		1,219		1,294		1,453		1,303		1,292		4,875		5,342

Corporate and Other
Service fees (1)		1		1		1		1		2		1		2		2		4		7
Net investment income		6		9		11		11		10		14		16		14		37		54
Realized capital gains and losses		5		-		-		-		6		21		3		-		5		30

Total Corporate and Other revenues before reclassification of services fees		12		10		12		12		18		36		21		16		46		91

Reclassification of service fees (1)		(1)		(1)		(1)		(1)		(2)		(1)		(2)		(2)		(4)		(7)

Total Corporate and Other revenues		11		9		11		11		16		35		19		14		42		84


Consolidated revenues	$	8,547	$	8,128	$	8,278	$	8,362	$	8,236	$	8,242	$	8,081	$	8,095	$	33,315	$	32,654

(1) For presentation in the Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to Operating costs and expenses.

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in millions)

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,			Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
		2012		2012		2012		2012		2011			2012		2012		2012		2012		2011

Assets											Liabilities
Investments											Reserve for property-liability insurance claims and claims expense	$	21,288	$	20,197	$	20,395	$	20,283	$	20,375
Fixed income securities, at fair value												$	21,288	$	20,197	$	20,395	$	20,283	$	20,375
(amortized cost $71,915, $72,432,											Reserve for life-contingent contract benefits		14,895		14,900		14,640		14,296		14,406
$73,925, $74,060 and $73,379)	$	77,017	$	77,729	$	77,926	$	77,223	$	76,113	Contractholder funds		39,319		40,110		40,832		41,603		42,332
Equity securities, at fair value											Unearned premiums		10,375		10,494		10,085		9,888		10,057
(cost $3,577, $3,429, $3,430,											Claim payments outstanding		797		763		813		750		827
$3,430 and $4,203)		4,037		3,876		3,681		3,847		4,363	Deferred income taxes		597		689		53		-		-
Mortgage loans		6,570		6,904		6,928		7,167		7,139	Other liabilities and accrued expenses		6,429		6,121		6,394		6,490		5,978
Limited partnership interests		4,922		4,974		4,694		4,637		4,697	Long-term debt		6,057		6,057		6,058		6,058		5,908
Short-term, at fair value											Separate Accounts		6,610		6,820		6,790		7,355		6,984
(amortized cost $2,336, $2,825,											Total liabilities		106,367		106,151		106,060		106,723		106,867
$1,867, $1,886 and $1,291)		2,336		2,825		1,867		1,886		1,291	Equity
Other		2,396		2,208		2,224		2,249		2,015
Total investments		97,278		98,516		97,320		97,009		95,618	Common stock, 479 million, 483 million, 486 million, 493 million and 501 million shares outstanding		9		9		9		9		9


											Additional capital paid-in		3,162		3,154		3,154		3,151		3,189
											Retained income		33,783		33,496		32,880		32,565		31,909
											Deferred ESOP expense		(41)		(41)		(41)		(41)		(43)
											Treasury stock, at cost (421 million, 417 million, 414 million, 407 million and 399 million shares)		(17,508)		(17,368)		(17,272)		(17,034)		(16,795)
													(17,508)		(17,368)		(17,272)		(17,034)		(16,795)
											Accumulated other comprehensive income:
											Unrealized net capital gains and losses:
											Unrealized net capital losses on fixed income securities with other-than-temporary impairments		(11)		(42)		(105)		(100)		(174)
													(11)		(42)		(105)		(100)		(174)
Cash		806		642		571		577		776	Other unrealized net capital gains and losses		3,614		3,765		2,859		2,412		2,041
Premium installment receivables, net		5,051		5,108		4,929		4,908		4,920	Unrealized adjustment to DAC, DSI and insurance reserves		(769)		(843)		(684)		(438)		(467)
Deferred policy acquisition costs		3,621		3,578		3,644		3,716		3,871	Unrealized adjustment to DAC, DSI and insurance reserves		(769)		(843)		(684)		(438)		(467)
Reinsurance recoverables, net (1)		8,767		7,278		7,120		7,118		7,251	Total unrealized net capital gains and losses		2,834		2,880		2,070		1,874		1,400
Accrued investment income		781		835		846		846		826	Unrealized foreign currency translation adjustments		70		70		58		65		56
Deferred income taxes		-		-		-		201		722	Unrealized foreign currency translation adjustments		70		70		58		65		56
Property and equipment, net		989		928		909		912		914	Unrecognized pension and other postretirement benefit cost		(1,729)		(1,363)		(1,383)		(1,407)		(1,427)
Goodwill		1,240		1,242		1,242		1,242		1,242	Unrecognized pension and other postretirement benefit cost		(1,729)		(1,363)		(1,383)		(1,407)		(1,427)
Other assets		1,804		2,041		2,164		2,049		2,069	Total accumulated other comprehensive income (loss)		1,175		1,587		745		532		29
Separate Accounts		6,610		6,820		6,790		7,355		6,984	Total accumulated other comprehensive income (loss)		1,175		1,587		745		532		29
											Total shareholders’ equity		20,580		20,837		19,475		19,182		18,298
											Noncontrolling interest		-		-		-		28		28
											Total equity		20,580		20,837		19,475		19,210		18,326
Total assets	$	126,947	$	126,988	$	125,535	$	125,933	$	125,193	Total liabilities and equity	$	126,947	$	126,988	$	125,535	$	125,933	$	125,193

(1) Reinsurance recoverables of unpaid losses related to Property-Liability were $4,010 million, $2,651 million, $2,544 million, $2,571 million and $2,588 million as of December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively.

THE ALLSTATE CORPORATION

BOOK VALUE PER SHARE

($ in millions, except per share data )

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2012		2012		2012		2012		2011		2011		2011		2011
Book value per share

Numerator:

Shareholders’ equity	$	20,580	$	20,837	$	19,475	$	19,182	$	18,298	$	17,732	$	18,382	$	18,898

Denominator:

Shares outstanding and dilutive potential shares outstanding		485.5		488.7		490.2		497.3		505.8		509.0		522.0		529.0

Book value per share	$	42.39	$	42.64	$	39.73	$	38.57	$	36.18	$	34.84	$	35.21	$	35.72

Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities *

Numerator:

Shareholders’ equity	$	20,580	$	20,837	$	19,475	$	19,182	$	18,298	$	17,732	$	18,382	$	18,898

Unrealized net capital gains and losses on fixed income securities		2,549		2,602		1,919		1,620		1,311		1,136		1,091		671

Adjusted shareholders’ equity	$	18,031	$	18,235	$	17,556	$	17,562	$	16,987	$	16,596	$	17,291	$	18,227

Denominator:

Shares outstanding and dilutive potential shares outstanding		485.5		488.7		490.2		497.3		505.8		509.0		522.0		529.0

Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities	$	37.14	$	37.31	$	35.81	$	35.31	$	33.58	$	32.61	$	33.12	$	34.46

THE ALLSTATE CORPORATION

RETURN ON SHAREHOLDERS’ EQUITY

($ in millions)

	Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2012			2012			2012			2012			2011			2011			2011			2011
Return on Shareholders’ Equity

Numerator:

Net income (1)	$	2,306		$	2,624		$	2,076		$	1,029		$	787		$	368		$	554		$	1,315

Denominator:

Beginning shareholders’ equity	$	18,298		$	17,732		$	18,382		$	18,898		$	18,617		$	18,887		$	17,619		$	17,104
Ending shareholders’ equity		20,580			20,837			19,475			19,182			18,298			17,732			18,382			18,898

Average shareholders’ equity (2)	$	19,439		$	19,285		$	18,929		$	19,040		$	18,458		$	18,310		$	18,001		$	18,001

Return on shareholders’ equity		11.9	%		13.6	%		11.0	%		5.4	%		4.3	%		2.0	%		3.1	%		7.3	%

Operating Income Return on Shareholders’ Equity *

Numerator:
Operating income (1)	$	2,148		$	2,594		$	1,957		$	878		$	662		$	189		$	555		$	1,632

Denominator:

Beginning shareholders’ equity	$	18,298		$	17,732		$	18,382		$	18,898		$	18,617		$	18,887		$	17,619		$	17,104
Unrealized net capital gains and losses		1,400			1,065			1,475			1,072			948			1,313			312			(145)
Adjusted beginning shareholders’ equity		16,898			16,667			16,907			17,826			17,669			17,574			17,307			17,249

Ending shareholders’ equity		20,580			20,837			19,475			19,182			18,298			17,732			18,382			18,898
Unrealized net capital gains and losses		2,834			2,880			2,070			1,874			1,400			1,065			1,475			1,072
Adjusted ending shareholders’ equity		17,746			17,957			17,405			17,308			16,898			16,667			16,907			17,826

Average adjusted shareholders’ equity (2)	$	17,322		$	17,312		$	17,156		$	17,567		$	17,284		$	17,121		$	17,107		$	17,538

Operating income return on shareholders’ equity		12.4	%		15.0	%		11.4	%		5.0	%		3.8	%		1.1	%		3.2	%		9.3	%

(1) Net income and operating income reflect a trailing twelve-month period.

(2) Average shareholders’ equity and average adjusted shareholders’ equity are determined using a two-point average, with the beginning and ending shareholders’ equity and adjusted shareholders’ equity, respectively, for the twelve-month period as data points.

THE ALLSTATE CORPORATION

DEBT TO CAPITAL

($ in millions)

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2012			2012			2012			2012			2011			2011			2011			2011

Debt

Long-term debt	$	6,057		$	6,057		$	6,058		$	6,058		$	5,908		$	5,907		$	5,907		$	5,908

Capital resources

Debt	$	6,057		$	6,057		$	6,058		$	6,058		$	5,908		$	5,907		$	5,907		$	5,908

Shareholders’ equity
Common stock		9			9			9			9			9			9			9			9
Additional capital paid-in		3,162			3,154			3,154			3,151			3,189			3,177			3,165			3,156
Retained income		33,783			33,496			32,880			32,565			31,909			31,303			31,237			31,971
Deferred ESOP expense		(41)			(41)			(41)			(41)			(43)			(43)			(43)			(42)
Treasury stock		(17,508)			(17,368)			(17,272)			(17,034)			(16,795)			(16,693)			(16,387)			(16,173)
Unrealized net capital gains and losses		2,834			2,880			2,070			1,874			1,400			1,065			1,475			1,072
Unrealized foreign currency translation adjustments		70			70			58			65			56			49			82			78
Unrecognized pension and other postretirement benefit cost		(1,729)			(1,363)			(1,383)			(1,407)			(1,427)			(1,135)			(1,156)			(1,173)
Total shareholders’ equity		20,580			20,837			19,475			19,182			18,298			17,732			18,382			18,898

Total capital resources	$	26,637		$	26,894		$	25,533		$	25,240		$	24,206		$	23,639		$	24,289		$	24,806

Ratio of debt to shareholders’ equity		29.4	%		29.1	%		31.1	%		31.6	%		32.3	%		33.3	%		32.1	%		31.3	%

Ratio of debt to capital resources		22.7	%		22.5	%		23.7	%		24.0	%		24.4	%		25.0	%		24.3	%		23.8	%

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	394	$	723	$	423	$	766	$	712	$	175	$	(624)	$	524	$	2,306	$	787
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and other non-cash items		95		92		105		96		103		60		58		31		388		252
Realized capital gains and losses		(204)		72		(27)		(168)		(86)		(264)		(57)		(96)		(327)		(503)
(Gain) loss on disposition of operations		(3)		(9)		(3)		(3)		(3)		(3)		(7)		20		(18)		7
Interest credited to contractholder funds		357		215		366		378		405		405		417		418		1,316		1,645
Changes in:
Policy benefits and other insurance reserves		983		(392)		(31)		(346)		(623)		(119)		723		(58)		214		(77)
Unearned premiums		(115)		394		207		(180)		(183)		307		161		(248)		306		37
Deferred policy acquisition costs		(31)		7		(46)		52		48		69		(7)		67		(18)		177
Premium installment receivables, net		53		(169)		(28)		19		191		(136)		(25)		3		(125)		33
Reinsurance recoverables, net		(1,421)		(166)		(30)		57		(441)		(235)		77		(117)		(1,560)		(716)
Income taxes		29		328		8		333		316		43		(429)		203		698		133
Other operating assets and liabilities		299		(251)		23		(197)		(181)		109		247		(21)		(126)		154
Net cash provided by operating activities		436		844		967		807		258		411		534		726		3,054		1,929

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales
Fixed income securities		4,920		4,034		4,229		5,689		5,520		9,776		5,777		8,363		18,872		29,436
Equity securities		150		70		216		1,059		896		262		212		642		1,495		2,012
Limited partnership interests		331		271		393		403		238		427		222		113		1,398		1,000
Mortgage loans		3		-		5		6		23		9		39		26		14		97
Other investments		44		16		52		36		15		40		46		63		148		164
Investment collections
Fixed income securities		1,525		1,751		1,175		966		1,087		1,479		1,184		1,201		5,417		4,951
Mortgage loans		382		224		288		170		143		183		220		88		1,064		634
Other investments		58		31		16		23		18		13		15		77		128		123
Investment purchases
Fixed income securities		(5,849)		(4,464)		(5,337)		(7,008)		(5,996)		(7,966)		(3,727)		(10,207)		(22,658)		(27,896)
Equity securities		(286)		(95)		(162)		(128)		(758)		(285)		(637)		(144)		(671)		(1,824)
Limited partnership interests		(292)		(568)		(346)		(318)		(537)		(394)		(431)		(334)		(1,524)		(1,696)
Mortgage loans		(53)		(205)		(51)		(216)		(345)		(360)		(510)		(26)		(525)		(1,241)
Other investments		(390)		(32)		(80)		(163)		(5)		(53)		(88)		(58)		(665)		(204)
Change in short-term investments, net		586		(892)		(13)		(379)		2,118		(1,102)		(483)		1,649		(698)		2,182
Change in other investments, net		64		51		(48)		(9)		(58)		(187)		(51)		(119)		58		(415)
Purchases of property and equipment, net		(109)		(60)		(65)		(51)		(86)		(54)		(58)		(48)		(285)		(246)
Disposition (acquisition) of operations, net of cash acquired		-		13		1		(1)		(917)		2		-		(1)		13		(916)
Net cash provided by investing activities		1,084		145		273		79		1,356		1,790		1,730		1,285		1,581		6,161

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		-		-		-		493		7		-		-		-		493		7
Repayment of long-term debt		(1)		-		(1)		(350)		(6)		-		(1)		-		(352)		(7)
Contractholder fund deposits		587		566		520		485		570		486		524		596		2,158		2,176
Contractholder fund withdrawals		(1,581)		(1,273)		(1,366)		(1,299)		(2,241)		(1,931)		(2,386)		(2,122)		(5,519)		(8,680)
Dividends paid		(212)		(107)		(109)		(106)		(108)		(109)		(111)		(107)		(534)		(435)
Treasury stock purchases		(184)		(146)		(274)		(309)		(95)		(314)		(239)		(305)		(913)		(953)
Shares reissued under equity incentive plans, net		25		34		11		15		1		1		8		9		85		19
Excess tax benefits on share-based payment arrangements		3		3		5		(1)		(1)		(1)		-		(3)		10		(5)
Other		7		5		(32)		(13)		9		-		(7)		-		(33)		2
Net cash used in financing activities		(1,356)		(918)		(1,246)		(1,085)		(1,864)		(1,868)		(2,212)		(1,932)		(4,605)		(7,876)

NET INCREASE (DECREASE) IN CASH		164		71		(6)		(199)		(250)		333		52		79		30		214
CASH AT BEGINNING OF PERIOD		642		571		577		776		1,026		693		641		562		776		562
CASH AT END OF PERIOD	$	806	$	642	$	571	$	577	$	776	$	1,026	$	693	$	641	$	806	$	776

THE ALLSTATE CORPORATION

ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS

($ in millions)

	Change in Deferred Policy Acquisition Costs
	For the three months ended December 31, 2012

								Amortization
								relating to realized
								capital gains and		Amortization
								losses and		(acceleration)		Effect of
		Beginning		Acquisition		Amortization		valuation changes on		deceleration		unrealized		Ending
		balance		costs		before		embedded derivatives		for changes in		capital gains		balance
		September 30, 2012		deferred		adjustments (1) (2)		that are not hedged (2)		assumptions (2)		and losses		December 31, 2012

Property-Liability	$	1,400	$	866	$	(870)	$	-	$	-	$	-	$	1,396

Allstate Financial:
Traditional life and accident and health		654		44		(27)		-		-		-		671
Interest-sensitive life		1,504		59		(41)		(6)		-		13		1,529
Fixed annuity		20		7		(3)		-		-		1		25
Subtotal		2,178		110		(71)		(6)		-		14		2,225

Consolidated	$	3,578	$	976	$	(941)	$	(6)	$	-	$	14	$	3,621

	Change in Deferred Policy Acquisition Costs
	For the three months ended December 31, 2011

								Amortization
								relating to realized
								capital gains and		Amortization
								losses and		(acceleration)		Effect of
		Beginning		Acquisition		Amortization		valuation changes on		deceleration		unrealized		Ending
		balance		costs		before		embedded derivatives		for changes in		capital gains		balance
		September 30, 2011		deferred		adjustments (1) (2)		that are not hedged (2)		assumptions (2)		and losses		December 31, 2011

Property-Liability	$	1,342	$	886	$	(880)	$	-	$	-	$	-	$	1,348

Allstate Financial:
Traditional life and accident and health		602		39		(25)		-		-		-		616
Interest-sensitive life		1,702		49		(41)		(6)		-		(6)		1,698
Fixed annuity		243		4		(12)		(17)		-		(9)		209
Subtotal		2,547		92		(78)		(23)		-		(15)		2,523

Consolidated	$	3,889	$	978	$	(958)	$	(23)	$	-	$	(15)	$	3,871

(1) Amortization before adjustments reflects total DAC amortization before amortization/accretion related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged and amortization acceleration/deceleration for changes in assumptions.

(2) Included as a component of amortization of DAC on the Consolidated Statements of Operations.

THE ALLSTATE CORPORATION

ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS

($ in millions)

		Change in Deferred Policy Acquisition Costs														Reconciliation of Deferred Policy
		For the twelve months ended December 31, 2012														Acquisition Costs as of December 31, 2012

								Amortization
								relating to realized
								capital gains and		Amortization						DAC before				DAC after
								losses and		(acceleration)		Effect of				impact of		Impact of		impact of
		Beginning		Acquisition		Amortization		valuation changes on		deceleration		unrealized		Ending		unrealized		unrealized		unrealized
		balance		costs		before		embedded derivatives		for changes in		capital gains		balance		capital gains		capital gains		capital gains
		Dec. 31, 2011		deferred		adjustments (1) (2)		that are not hedged (2)		assumptions (2)		and losses		Dec. 31, 2012		and losses		and losses		and losses

Property-Liability	$	1,348	$	3,531	$	(3,483)	$	-	$	-	$	-	$	1,396	$	1,396	$	-	$	1,396

Allstate Financial:
Traditional life and accident and health		616		154		(99)		-		-		-		671		671		-		671
Interest-sensitive life		1,698		192		(186)		(18)		(30)		(127)		1,529		1,875		(346)		1,529
Fixed annuity		209		25		(25)		(39)		(4)		(141)		25		59		(34)		25
Subtotal		2,523		371		(310)		(57)		(34)		(268)		2,225		2,605		(380)		2,225

Consolidated	$	3,871	$	3,902	$	(3,793)	$	(57)	$	(34)	$	(268)	$	3,621	$	4,001	$	(380)	$	3,621

		Change in Deferred Policy Acquisition Costs														Reconciliation of Deferred Policy
		For the twelve months ended December 31, 2011														Acquisition Costs as of December 31, 2011

								Amortization
								relating to realized
								capital gains and		Amortization						DAC before				DAC after
								losses and		(acceleration)		Effect of				impact of		Impact of		impact of
		Beginning		Acquisition		Amortization		valuation changes on		deceleration		unrealized		Ending		unrealized		unrealized		unrealized
		balance		costs		before		embedded derivatives		for changes in		capital gains		balance		capital gains		capital gains		capital gains
		Dec. 31, 2010		deferred		adjustments (1) (2)		that are not hedged (2)		assumptions (2)		and losses		Dec. 31, 2011		and losses		and losses		and losses

Property-Liability	$	1,321	$	3,504	$	(3,477)	$	-	$	-	$	-	$	1,348	$	1,348	$	-	$	1,348

Allstate Financial:
Traditional life and accident and health		573		133		(90)		-		-		-		616		616		-		616
Interest-sensitive life		1,917		178		(186)		(21)		(12)		(178)		1,698		1,917		(219)		1,698
Fixed annuity		369		22		(55)		(135)		5		3		209		102		107		209
Subtotal		2,859		333		(331)		(156)		(7)		(175)		2,523		2,635		(112)		2,523

Consolidated	$	4,180	$	3,837	$	(3,808)	$	(156)	$	(7)	$	(175)	$	3,871	$	3,983	$	(112)	$	3,871

(1)	Amortization before adjustments reflects total DAC amortization before amortization/accretion related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged and amortization acceleration/deceleration for changes in assumptions.
(2)	Included as a component of amortization of DAC on the Consolidated Statements of Operations.

THE ALLSTATE CORPORATION

HISTORICAL CONSOLIDATED OPERATING

AND FINANCIAL POSITION DATA

($ in millions except per share data)

		As of or for the Year Ended December 31,
		2012		2011		2010		2009		2008
Consolidated statements of operations data:
Insurance premiums and contract charges	$	28,978	$	28,180	$	28,125	$	28,152	$	28,862
Net investment income		4,010		3,971		4,102		4,444		5,622
Realized capital gains and losses		327		503		(827)		(583)		(5,090)
Total revenues	$	33,315	$	32,654	$	31,400	$	32,013	$	29,394

Operating income	$	2,148	$	662	$	1,506	$	1,880	$	1,730
Realized capital gains and losses, after-tax		216		324		(537)		(628)		(3,311)
Valuation changes on embedded derivatives that are not hedged, after-tax		82		(12)		-		-		-
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(42)		(108)		(29)		(153)		333
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		4		3		(12)		(219)		(203)
Non-recurring items, after-tax (1)		-		-		-		-		(80)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(33)		(35)		(29)		(2)		(14)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(81)		(42)		-		-		-
Gain (loss) on disposition of operations, after-tax		12		(5)		12		10		3
Net income (loss)	$	2,306	$	787	$	911	$	888	$	(1,542)
Income per share - Diluted
Operating income	$	4.36	$	1.27	$	2.78	$	3.48	$	3.16
Realized capital gains and losses, after-tax		0.44		0.62		(0.99)		(1.16)		(6.04)
Valuation changes on embedded derivatives that are not hedged, after-tax		0.17		(0.02)		-		-		-
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(0.09)		(0.21)		(0.05)		(0.29)		0.61
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		0.01		-		(0.02)		(0.41)		(0.37)
Non-recurring items, after-tax (1)		-		-		-		-		(0.15)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(0.07)		(0.07)		(0.06)		-		(0.02)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(0.16)		(0.08)		-		-		-
Gain (loss) on disposition of operations, after-tax		0.02		(0.01)		0.02		0.02		-
Net income (loss)	$	4.68	$	1.50	$	1.68	$	1.64	$	(2.81)
Net income (loss) per share - Basic	$	4.71	$	1.51	$	1.69	$	1.65	$	(2.81)

Consolidated statements of financial position data:
Investments	$	97,278	$	95,618	$	100,483	$	99,833	$	95,998
Total assets		126,947		125,193		130,500		132,209		134,351
Reserves for claims and claims expense, life-contingent contract benefits and contractholder funds		75,502		77,113		81,113		84,659		90,750
Debt		6,057		5,908		5,908		5,910		5,659
Shareholders’ equity		20,580		18,298		18,617		16,184		12,121
Book value per share		42.39		36.18		34.58		29.90		22.51

Operating ratios:
Annual statutory premiums written to surplus ratio (U.S. property-liability operations)		1.6x		1.6x		1.6x		1.7x		1.9x

Other operating data:
Total employees (2)		38,500		37,300		35,200		36,000		38,500
Total Allstate agencies (2)(3)		11,200		11,900		13,400		14,200		14,700

(1)	During the fourth quarter of 2008, for traditional life insurance and immediate annuities with life contingencies, an aggregate premium deficiency of $123 million, pre-tax ($80 million, after-tax) resulted primarily from an experience study indicating that the annuitants on certain life-contingent contracts are projected to live longer than we anticipated when the contracts were issued, and, to a lesser degree, a reduction in the related investment portfolio yield. The deficiency was recorded through a reduction in deferred acquisition costs.
(2)	Rounded to the nearest hundred.
(3)	Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and Canada.

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY RESULTS

($ in millions, except ratios)


	Three months ended																									Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,
		2012			2012			2012			2012			2011			2011			2011			2011			2012			2011

Premiums written	$	6,637		$	7,063		$	6,864		$	6,463		$	6,426		$	6,728		$	6,611		$	6,215		$	27,027		$	25,980
Decrease (increase) in unearned premiums		120			(411	)		(198	)		167			174			(276	)		(165	)		234			(322	)		(33	)
Other		(13	)		45			-			-			5			(20	)		11			(1	)		32			(5	)

Premiums earned		6,744			6,697			6,666			6,630			6,605			6,432			6,457			6,448			26,737			25,942
Claims and claims expense		(5,042	)		(4,293	)		(4,810	)		(4,339	)		(4,198	)		(5,132	)		(6,355	)		(4,476	)		(18,484	)		(20,161	)
Amortization of deferred policy acquisition costs		(870	)		(870	)		(865	)		(878	)		(880	)		(866	)		(867	)		(864	)		(3,483	)		(3,477	)
Operating costs and expenses		(939	)		(866	)		(847	)		(884	)		(913	)		(735	)		(726	)		(769	)		(3,536	)		(3,143	)
Restructuring and related charges		(9	)		(9	)		(10	)		(6	)		(13	)		(8	)		(11	)		(11	)		(34	)		(43	)
Underwriting (loss) income *		(116	)		659			134			523			601			(309	)		(1,502	)		328			1,200			(882	)

Net investment income		362			299			352			313			309			298			310			284			1,326			1,201
Periodic settlements and accruals on non-hedge derivative instruments		(2	)		(1	)		(2	)		(1	)		(3	)		(5	)		(3	)		(4	)		(6	)		(15	)
Business combination expenses and the amortization of purchased intangible assets		25			26			26			47			49			-			-			-			124			49
Income tax (expense) benefit on operations		(69	)		(316	)		(153	)		(281	)		(302	)		38			463			(181	)		(819	)		18

Operating income (loss)		200			667			357			601			654			22			(732	)		427			1,825			371

Realized capital gains and losses, after-tax		96			(11	)		12			124			7			15			(6	)		38			221			54
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		-			1			1			1			2			4			1			3			3			10
Business combination expenses and the amortization of purchased intangible assets, after-tax		(16	)		(18	)		(16	)		(31	)		(32	)		-			-			-			(81	)		(32	)
Net income (loss)	$	280		$	639		$	354		$	695		$	631		$	41		$	(737	)	$	468		$	1,968		$	403

Catastrophe losses	$	1,061		$	206		$	819		$	259		$	66		$	1,077		$	2,339		$	333		$	2,345		$	3,815

Operating ratios
Claims and claims expense (“loss”) ratio		74.8			64.1			72.2			65.4			63.5			79.8			98.4			69.4			69.1			77.7
Expense ratio		26.9			26.1			25.8			26.7			27.4			25.0			24.9			25.5			26.4			25.7
Combined ratio		101.7			90.2			98.0			92.1			90.9			104.8			123.3			94.9			95.5			103.4

Combined ratio excluding the effect of catastrophes *		86.0			87.1			85.7			88.2			89.9			88.1			87.1			89.7			86.7			88.7
Effect of catastrophe losses on combined ratio		15.7			3.1			12.3			3.9			1.0			16.7			36.2			5.2			8.8			14.7
Combined ratio		101.7			90.2			98.0			92.1			90.9			104.8			123.3			94.9			95.5			103.4

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses and the amortization of purchased intangible assets (“underlying”)		86.7			87.8			86.3			88.1			90.7			89.2			87.5			89.9			87.2			89.3
Effect of catastrophe losses on combined ratio		15.7			3.1			12.3			3.9			1.0			16.7			36.2			5.2			8.8			14.7
Effect of prior year reserve reestimates on combined ratio		(2.3	)		(2.2	)		(2.4	)		(3.1	)		(2.0	)		(1.8	)		(0.7	)		(0.7	)		(2.5	)		(1.3	)
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		1.2			1.1			1.4			2.5			0.5			0.7			0.3			0.5			1.5			0.5
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.4			0.4			0.4			0.7			0.7			-			-			-			0.5			0.2
Combined ratio		101.7			90.2			98.0			92.1			90.9			104.8			123.3			94.9			95.5			103.4

Effect of restructuring and related charges on combined ratio		0.1			0.1			0.2			0.1			0.2			0.1			0.2			0.2			0.1			0.2

Effect of Discontinued Lines and Coverages on combined ratio		-			0.7			0.1			-			-			0.2			0.1			0.1			0.2			0.1

THE ALLSTATE CORPORATION

HISTORICAL PROPERTY-LIABILITY RESULTS

($ in millions)

		Twelve months ended December 31,

		2012			2011			2010			2009			2008

Premiums written	$	27,027		$	25,980		$	25,907		$	25,971		$	26,584
(Increase) decrease in unearned premium		(322	)		(33	)		19			200			383
Other		32			(5	)		31			23			-

Premiums earned		26,737			25,942			25,957			26,194			26,967
Claims and claims expense		(18,484	)		(20,161	)		(18,951	)		(18,746	)		(20,064	)
Amortization of deferred policy acquisition costs		(3,483	)		(3,477	)		(3,517	)		(3,615	)		(3,796	)
Operating costs and expenses		(3,536	)		(3,143	)		(2,962	)		(2,728	)		(2,919	)
Restructuring and related charges		(34	)		(43	)		(33	)		(105	)		(22	)
Underwriting income (loss)		1,200			(882	)		494			1,000			166

Net investment income		1,326			1,201			1,189			1,328			1,674
Periodic settlement and accruals on non-hedge derivative instruments		(6	)		(15	)		(7	)		(10	)		1
Business combination expenses and the amortization of purchased intangible assets		124			49			-			-			-
Income tax (expense) benefit on operations		(819	)		18			(423	)		(557	)		(401	)

Operating income		1,825			371			1,253			1,761			1,440

Realized capital gains and losses, after-tax		221			54			(207	)		(222	)		(1,209	)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		3			10			4			7			(1	)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(81	)		(32	)		-			-			-
Gain on disposition of operations, after-tax		-			-			3			-			-
Net income	$	1,968		$	403		$	1,053		$	1,546		$	230

Catastrophe losses	$	2,345		$	3,815		$	2,207		$	2,069		$	3,342

Operating ratios
Loss ratio		69.1			77.7			73.0			71.6			74.4
Expense ratio		26.4			25.7			25.1			24.6			25.0
Combined ratio		95.5			103.4			98.1			96.2			99.4

Combined ratio excluding the effect of catastrophes		86.7			88.7			89.6			88.3			87.0
Effect of catastrophe losses on combined ratio		8.8			14.7			8.5			7.9			12.4
Combined ratio		95.5			103.4			98.1			96.2			99.4

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses and the amortization of purchased intangible assets (“underlying”)		87.2			89.3			89.6			88.1			86.8
Effect of catastrophe losses on combined ratio		8.8			14.7			8.5			7.9			12.4
Effect of prior year reserve reestimates on combined ratio		(2.5	)		(1.3	)		(0.6	)		(0.4	)		0.7
Effect of catastrophe losses included in prior year reserve reestimate on combined ratio		1.5			0.5			0.6			0.6			(0.5	)
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.5			0.2			-			-			-
Combined ratio		95.5			103.4			98.1			96.2			99.4

Effect of restructuring and related charges on combined ratio		0.1			0.2			0.1			0.4			0.1

Effect of Discontinued Lines and Coverages on the combined ratio		0.2			0.1			0.1			0.1			0.1

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS

($ in millions)


	Three months ended																									Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,
		2012			2012			2012			2012			2011			2011			2011			2011			2012			2011

Property-Liability Underwriting Summary
Allstate Protection	$	(112	)	$	701		$	138		$	526		$	604		$	(297	)	$	(1,498	)	$	334		$	1,253		$	(857	)
Discontinued Lines and Coverages		(4	)		(42	)		(4	)		(3	)		(3	)		(12	)		(4	)		(6	)		(53	)		(25	)
Underwriting (loss) income	$	(116	)	$	659		$	134		$	523		$	601		$	(309	)	$	(1,502	)	$	328		$	1,200		$	(882	)

Allstate Protection Underwriting Summary
Premiums written	$	6,636		$	7,064		$	6,864		$	6,462		$	6,426		$	6,728		$	6,611		$	6,216		$	27,026		$	25,981

Premiums earned	$	6,745		$	6,696		$	6,666		$	6,630		$	6,604		$	6,432		$	6,457		$	6,449		$	26,737		$	25,942
Claims and claims expense		(5,038	)		(4,251	)		(4,808	)		(4,336	)		(4,195	)		(5,121	)		(6,352	)		(4,472	)		(18,433	)		(20,140	)
Amortization of deferred policy acquisition costs		(870	)		(870	)		(865	)		(878	)		(880	)		(866	)		(867	)		(864	)		(3,483	)		(3,477	)
Operating costs and expenses		(940	)		(865	)		(845	)		(884	)		(912	)		(734	)		(725	)		(768	)		(3,534	)		(3,139	)
Restructuring and related charges		(9	)		(9	)		(10	)		(6	)		(13	)		(8	)		(11	)		(11	)		(34	)		(43	)
Underwriting (loss) income	$	(112	)	$	701		$	138		$	526		$	604		$	(297	)	$	(1,498	)	$	334		$	1,253		$	(857	)

Catastrophe losses	$	1,061		$	206		$	819		$	259		$	66		$	1,077		$	2,339		$	333		$	2,345		$	3,815

Operating ratios
Loss ratio		74.7			63.5			72.1			65.4			63.5			79.6			98.4			69.3			68.9			77.6
Expense ratio		27.0			26.0			25.8			26.7			27.4			25.0			24.8			25.5			26.4			25.7
Combined ratio		101.7			89.5			97.9			92.1			90.9			104.6			123.2			94.8			95.3			103.3

Effect of catastrophe losses on combined ratio		15.7			3.1			12.3			3.9			1.0			16.7			36.2			5.2			8.8			14.7

Effect of restructuring and related charges on combined ratio		0.1			0.1			0.2			0.1			0.2			0.1			0.2			0.2			0.1			0.2

Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.4			0.4			0.4			0.7			0.7			-			-			-			0.5			0.2

Discontinued Lines and Coverages
Underwriting Summary
Premiums written	$	1		$	(1	)	$	-		$	1		$	-		$	-		$	-		$	(1	)	$	1		$	(1	)

Premiums earned	$	(1	)	$	1		$	-		$	-		$	1		$	-		$	-		$	(1	)	$	-		$	-
Claims and claims expense		(4	)		(42	)		(2	)		(3	)		(3	)		(11	)		(3	)		(4	)		(51	)		(21	)
Operating costs and expenses		1			(1	)		(2	)		-			(1	)		(1	)		(1	)		(1	)		(2	)		(4	)
Underwriting loss	$	(4	)	$	(42	)	$	(4	)	$	(3	)	$	(3	)	$	(12	)	$	(4	)	$	(6	)	$	(53	)	$	(25	)

Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio		-			0.7			0.1			-			-			0.2			0.1			0.1			0.2			0.1

THE ALLSTATE CORPORATION

HISTORICAL PROPERTY-LIABILITY

UNDERWRITING RESULTS BY AREA OF BUSINESS

($ in millions)

		Twelve months ended December 31,

		2012		2011		2010		2009		2008

Property-Liability Underwriting Summary
Allstate Protection	$	1,253	$	(857)	$	525	$	1,032	$	191
Discontinued Lines and Coverages		(53)		(25)		(31)		(32)		(25)
Underwriting income (loss)	$	1,200	$	(882)	$	494	$	1,000	$	166

Allstate Protection Underwriting Summary
Premiums written	$	27,026	$	25,981	$	25,906	$	25,972	$	26,584
Premiums earned	$	26,737	$	25,942	$	25,955	$	26,195	$	26,967
Claims and claims expense		(18,433)		(20,140)		(18,923)		(18,722)		(20,046)
Amortization of deferred policy acquisition costs		(3,483)		(3,477)		(3,517)		(3,615)		(3,796)
Operating costs and expenses		(3,534)		(3,139)		(2,957)		(2,721)		(2,912)
Restructuring and related charges		(34)		(43)		(33)		(105)		(22)
Underwriting income (loss)	$	1,253	$	(857)	$	525	$	1,032	$	191

Catastrophe losses	$	2,345	$	3,815	$	2,207	$	2,069	$	3,342

Operating ratios
Loss ratio		68.9		77.6		72.9		71.5		74.3
Expense ratio		26.4		25.7		25.1		24.6		25.0
Combined ratio		95.3		103.3		98.0		96.1		99.3

Effect of catastrophe losses on combined ratio		8.8		14.7		8.5		7.9		12.4

Effect of restructuring and related charges on combined ratio		0.1		0.2		0.1		0.4		0.1

Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.5		0.2		-		-		-

Discontinued Lines and Coverages
Underwriting Summary
Premiums written	$	1	$	(1)	$	1	$	(1)	$	-

Premiums earned	$	-	$	-	$	2	$	(1)	$	-
Claims and claims expense		(51)		(21)		(28)		(24)		(18)
Operating costs and expenses		(2)		(4)		(5)		(7)		(7)
Underwriting loss	$	(53)	$	(25)	$	(31)	$	(32)	$	(25)

Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio		0.2		0.1		0.1		0.1		0.1

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY PREMIUMS WRITTEN BY MARKET SEGMENT

($ in millions)


		Three months ended																Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Allstate brand (1)
Standard auto	$	3,872	$	3,988	$	3,903	$	3,937	$	3,812	$	3,996	$	3,911	$	3,984	$	15,700	$	15,703
Non-standard auto		159		176		174		189		174		194		197		210		698		775
Auto		4,031		4,164		4,077		4,126		3,986		4,190		4,108		4,194		16,398		16,478

Involuntary auto		15		17		21		20		17		17		21		19		73		74
Commercial lines		112		110		120		112		111		116		125		120		454		472
Homeowners		1,477		1,686		1,639		1,258		1,428		1,634		1,606		1,225		6,060		5,893
Other personal lines		467		508		494		435		446		489		478		413		1,904		1,826
		6,102		6,485		6,351		5,951		5,988		6,446		6,338		5,971		24,889		24,743

Encompass brand
Standard auto		153		163		160		142		147		159		154		144		618		604
Non-standard auto		-		-		-		-		-		-		-		1		-		1
Auto		153		163		160		142		147		159		154		145		618		605

Involuntary auto		1		2		3		2		1		2		3		3		8		9
Homeowners		101		108		104		85		89		100		94		79		398		362
Other personal lines		23		24		22		20		20		21		22		18		89		81
		278		297		289		249		257		282		273		245		1,113		1,057

Esurance brand
Standard auto		256		282		224		262		181		-		-		-		1,024		181

Allstate Protection		6,636		7,064		6,864		6,462		6,426		6,728		6,611		6,216		27,026		25,981

Discontinued Lines and Coverages		1		(1)		-		1		-		-		-		(1)		1		(1)

Property-Liability	$	6,637	$	7,063	$	6,864	$	6,463	$	6,426	$	6,728	$	6,611	$	6,215	$	27,027	$	25,980



Allstate Protection
Standard auto	$	4,281	$	4,433	$	4,287	$	4,341	$	4,140	$	4,155	$	4,065	$	4,128	$	17,342	$	16,488
Non-standard auto		159		176		174		189		174		194		197		211		698		776
Auto		4,440		4,609		4,461		4,530		4,314		4,349		4,262		4,339		18,040		17,264

Involuntary auto		16		19		24		22		18		19		24		22		81		83
Commercial lines		112		110		120		112		111		116		125		120		454		472
Homeowners		1,578		1,794		1,743		1,343		1,517		1,734		1,700		1,304		6,458		6,255
Other personal lines		490		532		516		455		466		510		500		431		1,993		1,907

	$	6,636	$	7,064	$	6,864	$	6,462	$	6,426	$	6,728	$	6,611	$	6,216	$	27,026	$	25,981

(1) Canada premiums included in Allstate brand	$	253	$	279	$	291	$	218	$	227	$	261	$	272	$	194	$	1,041	$	954

THE ALLSTATE CORPORATION

ALLSTATE BRAND PREMIUMS WRITTEN (1)

($ in millions)

	Three months ended																		Twelve months ended

			Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
			2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Allstate Auto Home and Agencies
Standard auto		$	3,833	$	3,932	$	3,828	$	3,887	$	3,777	$	3,944	$	3,840	$	3,938	$	15,480	$	15,499
Non-standard auto			155		170		167		185		171		187		188		205		677		751
Auto			3,988		4,102		3,995		4,072		3,948		4,131		4,028		4,143		16,157		16,250

Involuntary auto			15		17		21		20		17		17		21		19		73		74
Homeowners			1,477		1,686		1,639		1,258		1,428		1,634		1,606		1,225		6,060		5,893
Other personal lines			9		12		12		8		9		11		11		8		41		39
			5,489		5,817		5,667		5,358		5,402		5,793		5,666		5,395		22,331		22,256

Emerging Businesses (2)
Specialty auto (3)		$	43	$	62	$	82	$	54	$	38	$	59	$	80	$	51	$	241	$	228
Auto			43		62		82		54		38		59		80		51		241		228

Landlord			137		140		132		123		136		136		128		120		532		520
Renters			52		62		54		50		50		58		52		45		218		205
Condominium			47		50		49		41		45		48		47		38		187		178
Other property			102		126		136		100		98		129		137		104		464		468
Specialty property			338		378		371		314		329		371		364		307		1,401		1,371

Consumer household (4)			381		440		453		368		367		430		444		358		1,642		1,599

Allstate Roadside Services			75		74		71		76		73		74		76		75		296		298
Allstate Dealer Services			45		44		40		37		35		33		27		23		166		118
Other personal lines (5)			458		496		482		427		437		478		467		405		1,863		1,787

Commercial lines			112		110		120		112		111		116		125		120		454		472
			613		668		684		593		586		653		672		576		2,558		2,487

Allstate brand (1)
Standard auto		$	3,872	$	3,988	$	3,903	$	3,937	$	3,812	$	3,996	$	3,911	$	3,984	$	15,700	$	15,703
Non-standard auto			159		176		174		189		174		194		197		210		698		775
Auto			4,031		4,164		4,077		4,126		3,986		4,190		4,108		4,194		16,398		16,478

Involuntary auto			15		17		21		20		17		17		21		19		73		74
Commercial lines			112		110		120		112		111		116		125		120		454		472
Homeowners			1,477		1,686		1,639		1,258		1,428		1,634		1,606		1,225		6,060		5,893
Other personal lines			467		508		494		435		446		489		478		413		1,904		1,826
		$	6,102	$	6,485	$	6,351	$	5,951	$	5,988	$	6,446	$	6,338	$	5,971	$	24,889	$	24,743

(1)	Allstate brand is comprised of Allstate Auto Home and Agencies and Emerging Businesses.
(2)	Emerging Businesses include Consumer Household (specialty auto products including motorcycle, trailer, motor home and off-road vehicle insurance policies and specialty property products including renter, landlord, boat, umbrella, manufactured home and condominium insurance policies), Allstate Roadside Services (roadside assistance products), Allstate Dealer Services (guaranteed automobile protection and vehicle service products sold primarily through auto dealers), Ivantage (insurance agency) and Commercial Lines (commercial products for small business owners).
(3)	Specialty auto is reported in Allstate brand auto.
(4)	Consumer household includes specialty auto and specialty property.
(5)	Emerging Businesses other personal lines include specialty property (landlord, renter, condominium and other property), Allstate Roadside Services and Allstate Dealer Services.

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

IMPACT OF NET RATE CHANGES APPROVED ON PREMIUMS WRITTEN

	Three months ended				Three months ended				Three months ended
	December 31, 2012 (1)				September 30, 2012				June 30, 2012

	Number of	��		State	Number of			State	Number of			State
	states		Countrywide (%) (4)	specific (%) (5)	states		Countrywide (%) (4)	specific (%) (5)	states		Countrywide (%) (4)	specific (%) (5)
Allstate brand
Standard auto (2)	15		0.8	2.9	13		0.3	1.8	19		1.5	4.4
Non-standard auto	4		0.4	5.9	4		0.2	5.8	1		0.3	7.5
Auto	17		0.8	3.0	15		0.3	1.8	19		1.4	4.4
Homeowners (3)	20		2.3	6.2	10		0.8	7.3	7		1.2	10.2

Encompass brand
Standard auto	21		1.7	4.3	3		0.7	4.5	14		1.6	4.2
Non-standard auto	-		-	-	-		-	-	-		-	-
Auto	21		1.7	4.3	3		0.7	4.5	14		1.6	4.2
Homeowners	20		3.0	5.8	5	(6)	0.3	2.5	14		1.8	5.4

Esurance brand
Standard auto	21		2.0	4.4	7		1.2	4.2	23		(0.1)	(0.1)

	Three months ended				Three months ended				Three months ended
	March 31, 2012				December 31, 2011				September 30, 2011

	Number of			State	Number of			State	Number of			State
	states		Countrywide (%) (4)	specific (%) (5)	states		Countrywide (%) (4)	specific (%) (5)	states		Countrywide (%) (4)	specific (%) (5)
Allstate brand
Standard auto (2)	10		0.5	5.4	12	(8)	0.7	3.9	10	(7)	0.9	7.3
Non-standard auto	4		0.2	1.4	5	(6)	1.1	6.5	3		0.9	11.5
Auto	13		0.5	5.1	16	(6)	0.8	4.0	13		0.9	7.4
Homeowners (3)	13		2.0	7.9	17		2.9	7.8	15		2.3	13.9

Encompass brand
Standard auto	2		0.1	3.2	7		1.8	6.5	8		0.7	3.9
Non-standard auto	-		-	-	-		-	-	-		-	-
Auto	2		0.1	3.2	7		1.8	6.5	8		0.7	3.9
Homeowners	5		0.9	5.3	8		0.8	4.6	7		0.7	3.0

Esurance brand
Standard auto	6		1.3	8.6	n/a		n/a	n/a	-		-	-

(1)	Rate changes include changes approved based on our net cost of reinsurance. These rate changes do not reflect initial rates filed for insurance subsidiaries initially writing business. Based on historical premiums written in those states, rate changes approved for the three month and twelve month period ending December 31, 2012 are estimated to total $304 million and $950 million, respectively. Rate changes do not include rating plan enhancements, including the introduction of discounts and surcharges, that result in no change in the overall rate level in the state. Rate changes also exclude Canadian operations, specialty auto, and excess and surplus homeowners lines.
(2)	Impacts of Allstate brand standard auto effective rate changes as a percentage of total countrywide prior year-end premiums written were 0.6%, 1.1%, 0.9%, 0.4%, 1.2% and 1.6% for the three months ended December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively.
(3)	Impacts of Allstate brand homeowners effective rate changes as a percentage of total countrywide prior year-end premiums written were 1.0%, 0.7%, 2.0%, 3.6%, 2.6% and 1.1% for the three months ended December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively.
(4)	Represents the impact in the states where rate changes were approved during the period as a percentage of total countrywide prior year-end premiums written.
(5)	Represents the impact in the states where rate changes were approved during the period as a percentage of its respective total prior year-end premiums written in those states.
(6)	Includes Washington, D.C.
(7)	Includes the impact of a 9.9% average rate increase in New York in the third quarter of 2011.
(8)	Includes the impact of a 8.0% rate increase in Florida and a 1.2% rate increase in New York in the fourth quarter of 2011.
n/a	Not available.

THE ALLSTATE CORPORATION

ALLSTATE BRAND PROFITABILITY MEASURES

($ in millions, except ratios)

	Three months ended																										Twelve months ended

			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,
			2012			2012			2012			2012			2011			2011			2011			2011			2012			2011

Net premiums written		$	6,102		$	6,485		$	6,351		$	5,951		$	5,988		$	6,446		$	6,338		$	5,971		$	24,889		$	24,743

Net premiums earned
Standard auto		$	3,921		$	3,910		$	3,909		$	3,897		$	3,897		$	3,916		$	3,938		$	3,928		$	15,637		$	15,679
Non-standard auto			171			177			184			183			186			196			205			210			715			797
Auto			4,092			4,087			4,093			4,080			4,083			4,112			4,143			4,138			16,352			16,476
Homeowners			1,514			1,499			1,487			1,480			1,468			1,462			1,457			1,448			5,980			5,835
Other personal lines			600			591			583			583			587			590			587			588			2,357			2,352
Total			6,206			6,177			6,163			6,143			6,138			6,164			6,187			6,174			24,689			24,663

Incurred losses
Standard auto		$	2,988		$	2,617		$	2,734		$	2,713		$	2,713		$	2,712		$	2,882		$	2,760		$	11,052		$	11,067
Non-standard auto			104			103			112			123			110			112			142			136			442			500
Auto			3,092			2,720			2,846			2,836			2,823			2,824			3,024			2,896			11,494			11,567
Homeowners			1,045			735			1,218			836			657			1,587			2,493			983			3,834			5,720
Other personal lines			429			416			369			314			351			450			590			396			1,528			1,787
Total			4,566			3,871			4,433			3,986			3,831			4,861			6,107			4,275			16,856			19,074

Expenses
Standard auto		$	1,001		$	977		$	1,000		$	998		$	1,008		$	973		$	989		$	973		$	3,976		$	3,943
Non-standard auto			45			43			42			44			49			48			47			48			174			192
Auto			1,046			1,020			1,042			1,042			1,057			1,021			1,036			1,021			4,150			4,135
Homeowners			377			358			342			351			370			341			324			340			1,428			1,375
Other personal lines			216			182			164			178			212			167			164			203			740			746
Total			1,639			1,560			1,548			1,571			1,639			1,529			1,524			1,564			6,318			6,256

Underwriting income (loss)
Standard auto		$	(68	)	$	316		$	175		$	186		$	176		$	231		$	67		$	195		$	609		$	669
Non-standard auto			22			31			30			16			27			36			16			26			99			105
Auto			(46	)		347			205			202			203			267			83			221			708			774
Homeowners			92			406			(73	)		293			441			(466	)		(1,360	)		125			718			(1,260	)
Other personal lines			(45	)		(7	)		50			91			24			(27	)		(167	)		(11	)		89			(181	)
Total			1			746			182			586			668			(226	)		(1,444	)		335			1,515			(667	)

Loss ratio			73.6			62.7			71.9			64.9			62.4			78.9			98.7			69.2			68.3			77.3
Expense ratio			26.4			25.2			25.1			25.6			26.7			24.8			24.6			25.4			25.6			25.4
Combined ratio			100.0			87.9			97.0			90.5			89.1			103.7			123.3			94.6			93.9			102.7

Effect of catastrophe losses on combined ratio			15.5			3.1			12.9			4.1			0.9			16.3			36.8			5.1			8.9			14.8

Effect of prior year reserve reestimates on combined ratio			(2.2	)		(2.9	)		(2.5	)		(3.3	)		(2.3	)		(2.1	)		(0.8	)		(0.8	)		(2.7	)		(1.5	)

Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio			0.1			0.1			0.1			0.1			0.1			-			-			-			0.1			-

Effect of advertising expenses on combined ratio			2.5			2.4			2.9			3.1			4.2			2.8			2.6			2.2			2.7			3.0

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses, and the amortization of purchased intangible assets (“underlying”)			85.3			86.7			85.1			87.0			89.9			88.7			87.1			89.7			86.0			88.9
Effect of catastrophe losses			15.5			3.1			12.9			4.1			0.9			16.3			36.8			5.1			8.9			14.8
Effect of prior year non-catastrophe reserve reestimates			(0.9	)		(2.0	)		(1.1	)		(0.7	)		(1.8	)		(1.3	)		(0.6	)		(0.2	)		(1.1	)		(1.0	)
Effect of business combination expenses and the amortization of purchased intangible assets			0.1			0.1			0.1			0.1			0.1			-			-			-			0.1			-
Combined ratio			100.0			87.9			97.0			90.5			89.1			103.7			123.3			94.6			93.9			102.7

THE ALLSTATE CORPORATION

ENCOMPASS BRAND PROFITABILITY MEASURES

($ in millions, except ratios)

	Three months ended																										Twelve months ended

			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,
			2012			2012			2012			2012			2011			2011			2011			2011			2012			2011

Net premiums written		$	278		$	297		$	289		$	249		$	257		$	282		$	273		$	245		$	1,113		$	1,057

Net premiums earned
Standard auto		$	153		$	152		$	153		$	151		$	151		$	154		$	155		$	160		$	609		$	620
Non-standard auto			-			-			-			-			-			-			1			1			-			2
Auto			153			152			153			151			151			154			156			161			609			622
Homeowners			98			96			93			92			92			91			91			91			379			365
Other personal lines			24			23			23			23			22			23			23			23			93			91
Total			275			271			269			266			265			268			270			275			1,081			1,078

Incurred losses
Standard auto		$	118		$	121		$	125		$	118		$	129		$	135		$	122		$	121		$	482		$	507
Non-standard auto			(2	)		(2	)		-			-			-			1			1			1			(4	)		3
Auto			116			119			125			118			129			136			123			122			478			510
Homeowners			121			56			62			51			56			109			98			60			290			323
Other personal lines			20			13			10			20			22			15			24			15			63			76
Total			257			188			197			189			207			260			245			197			831			909

Expenses
Standard auto		$	47		$	45		$	42		$	43		$	44		$	44		$	44		$	45		$	177		$	177
Non-standard auto			1			-			-			-			-			1			-			1			1			2
Auto			48			45			42			43			44			45			44			46			178			179
Homeowners			31			30			28			28			29			28			28			28			117			113
Other personal lines			6			7			7			5			5			6			7			5			25			23
Total			85			82			77			76			78			79			79			79			320			315

Underwriting income (loss)
Standard auto		$	(12	)	$	(14	)	$	(14	)	$	(10	)	$	(22	)	$	(25	)	$	(11	)	$	(6	)	$	(50	)	$	(64	)
Non-standard auto			1			2			-			-			-			(2	)		-			(1	)		3			(3	)
Auto			(11	)		(12	)		(14	)		(10	)		(22	)		(27	)		(11	)		(7	)		(47	)		(67	)
Homeowners			(54	)		10			3			13			7			(46	)		(35	)		3			(28	)		(71	)
Other personal lines			(2	)		3			6			(2	)		(5	)		2			(8	)		3			5			(8	)
Total			(67	)		1			(5	)		1			(20	)		(71	)		(54	)		(1	)		(70	)		(146	)

Loss ratio			93.5			69.4			73.3			71.0			78.1			97.0			90.7			71.7			76.9			84.3
Expense ratio			30.9			30.2			28.6			28.6			29.4			29.5			29.3			28.7			29.6			29.2
Combined ratio			124.4			99.6			101.9			99.6			107.5			126.5			120.0			100.4			106.5			113.5

Effect of catastrophe losses on combined ratio			34.9			5.5			6.7			2.6			4.5			26.5			24.1			6.2			12.6			15.3

Effect of prior year reserve reestimates on combined ratio			(8.4	)		(3.7	)		(3.7	)		(0.8	)		3.4			1.5			(0.7	)		1.5			(4.2	)		1.4

Effect of advertising expenses on combined ratio			0.7			-			0.4			0.8			-			-			-			0.4			0.5			0.1

Combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)			97.1			93.4			97.0			96.6			99.6			98.5			96.3			93.1			96.0			96.8
Effect of catastrophe losses			34.9			5.5			6.7			2.6			4.5			26.5			24.1			6.2			12.6			15.3
Effect of prior year non-catastrophe reserve reestimates			(7.6	)		0.7			(1.8	)		0.4			3.4			1.5			(0.4	)		1.1			(2.1	)		1.4
Combined ratio			124.4			99.6			101.9			99.6			107.5			126.5			120.0			100.4			106.5			113.5

THE ALLSTATE CORPORATION

ESURANCE BRAND PROFITABILITY MEASURES AND STATISTICS

	Three months ended												Twelve months ended

			Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,(1)		Dec. 31,		Dec. 31,(1)
($ in millions)			2012		2012		2012		2012		2011		2012		2011

Net premiums written		$	256	$	282	$	224	$	262	$	181	$	1,024	$	181

Net premiums earned
Standard auto		$	264	$	248	$	234	$	221	$	201	$	967	$	201

Incurred losses
Standard auto		$	215	$	192	$	178	$	161	$	157	$	746	$	157

Expenses
Standard auto		$	95	$	102	$	95	$	121	$	88	$	413	$	88

Underwriting loss		$	(46)	$	(46)	$	(39)	$	(61)	$	(44)	$	(192)	$	(44)

Loss ratio			81.4		77.4		76.1		72.8		78.1		77.2		78.1
Expense ratio			36.0		41.1		40.6		54.8		43.8		42.7		43.8
Combined ratio			117.4		118.5		116.7		127.6		121.9		119.9		121.9

Effect of catastrophe losses on combined ratio			2.3		0.8		2.6		0.4		-		1.6		-

Effect of prior year reserve reestimates on combined ratio			-		-		-		-		-		-		-

Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio			7.2		8.1		8.1		18.1		20.9		10.1		20.9

Effect of advertising expenses on combined ratio			9.5		16.5		16.2		20.4		10.9		15.4		10.9

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses, and the amortization of purchased intangible assets (“underlying”)			107.9		109.6		106.0		109.1		101.0		108.2		101.0
Effect of catastrophe losses			2.3		0.8		2.6		0.4		-		1.6		-
Effect of prior year non-catastrophe reserve reestimates			-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets			7.2		8.1		8.1		18.1		20.9		10.1		20.9
Combined ratio			117.4		118.5		116.7		127.6		121.9		119.9		121.9

Policies in Force (in thousands)			1,029		962		892		849		786		1,029		786

Average Premium - Gross Written ($)			484		485		490		508		n/a		493		n/a

Renewal Ratio (%) (2)			80.1		79.7		81.9		80.5		78.7		80.5		78.5

Impact of Esurance brand on Allstate Protection combined ratio			0.7		0.7		0.6		0.9		0.7		0.7		0.7

Impact of Esurance brand on Allstate Protection expense ratio			1.4		1.5		1.4		1.8		1.3		1.5		1.3

(1)	Represents period from October 7, 2011 to December 31, 2011.
(2)	The Esurance brand renewal ratios for prior periods were restated to conform to the computation methodology used for Allstate and Encompass brand.
n/a	Not available.

THE ALLSTATE CORPORATION

STANDARD AUTO PROFITABILITY MEASURES

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
($ in millions)		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Net premiums written
Allstate brand	$	3,872	$	3,988	$	3,903	$	3,937	$	3,812	$	3,996	$	3,911	$	3,984	$	15,700	$	15,703
Encompass brand		153		163		160		142		147		159		154		144		618		604
Esurance brand		256		282		224		262		181		-		-		-		1,024		181
		4,281		4,433		4,287		4,341		4,140		4,155		4,065		4,128		17,342		16,488
Net premiums earned
Allstate brand	$	3,921	$	3,910	$	3,909	$	3,897	$	3,897	$	3,916	$	3,938	$	3,928	$	15,637	$	15,679
Encompass brand		153		152		153		151		151		154		155		160		609		620
Esurance brand		264		248		234		221		201		-		-		-		967		201
		4,338		4,310		4,296		4,269		4,249		4,070		4,093		4,088		17,213		16,500
Incurred losses
Allstate brand	$	2,988	$	2,617	$	2,734	$	2,713	$	2,713	$	2,712	$	2,882	$	2,760	$	11,052	$	11,067
Encompass brand		118		121		125		118		129		135		122		121		482		507
Esurance brand		215		192		178		161		157		-		-		-		746		157
		3,321		2,930		3,037		2,992		2,999		2,847		3,004		2,881		12,280		11,731
Expenses
Allstate brand	$	1,001	$	977	$	1,000	$	998	$	1,008	$	973	$	989	$	973	$	3,976	$	3,943
Encompass brand		47		45		42		43		44		44		44		45		177		177
Esurance brand		95		102		95		121		88		-		-		-		413		88
		1,143		1,124		1,137		1,162		1,140		1,017		1,033		1,018		4,566		4,208
Underwriting Income
Allstate brand	$	(68)	$	316	$	175	$	186	$	176	$	231	$	67	$	195	$	609	$	669
Encompass brand		(12)		(14)		(14)		(10)		(22)		(25)		(11)		(6)		(50)		(64)
Esurance brand		(46)		(46)		(39)		(61)		(44)		-		-		-		(192)		(44)
		(126)		256		122		115		110		206		56		189		367		561
Loss ratio
Allstate brand		76.2		66.9		69.9		69.6		69.6		69.3		73.2		70.3		70.7		70.6
Encompass brand		77.1		79.6		81.7		78.1		85.4		87.6		78.7		75.7		79.1		81.8
Esurance brand		81.4		77.4		76.1		72.8		78.1		-		-		-		77.2		78.1
Allstate Protection		76.6		68.0		70.7		70.1		70.6		70.0		73.4		70.5		71.4		71.1
Expense ratio
Allstate brand		25.5		25.0		25.6		25.6		25.9		24.8		25.1		24.7		25.4		25.1
Encompass brand		30.7		29.6		27.5		28.5		29.2		28.6		28.4		28.1		29.1		28.5
Esurance brand		36.0		41.1		40.6		54.8		43.8		-		-		-		42.7		43.8
Allstate Protection		26.3		26.1		26.5		27.2		26.8		24.9		25.2		24.9		26.5		25.5
Combined ratio
Allstate brand		101.7		91.9		95.5		95.2		95.5		94.1		98.3		95.0		96.1		95.7
Encompass brand		107.8		109.2		109.2		106.6		114.6		116.2		107.1		103.8		108.2		110.3
Esurance brand		117.4		118.5		116.7		127.6		121.9		-		-		-		119.9		121.9
Allstate Protection		102.9		94.1		97.2		97.3		97.4		94.9		98.6		95.4		97.9		96.6
Effect of catastrophe losses on combined ratio
Allstate brand		9.3		1.3		3.9		1.2		0.2		2.9		6.7		0.5		3.9		2.6
Encompass brand		9.8		1.3		2.6		0.7		0.7		3.2		3.2		-		3.6		1.8
Esurance brand		2.3		0.8		2.6		0.4		-		-		-		-		1.6		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(1.7)		(3.2)		(2.0)		(1.2)		(3.2)		(3.3)		(2.2)		(0.4)		(2.0)		(2.3)
Encompass brand		(14.4)		0.7		-		0.7		-		6.5		-		3.1		(3.3)		2.4
Esurance brand		-		-		-		-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio Esurance brand		7.2		8.1		8.1		18.1		20.9		-		-		-		10.1		20.9
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		94.0		93.7		93.4		94.9		98.4		94.4		93.7		94.8		94.0		95.3
Effect of catastrophe losses on combined ratio		9.3		1.3		3.9		1.2		0.2		2.9		6.7		0.5		3.9		2.6
Effect of prior year non-catastrophe reserve reestimates on combined ratio		(1.6)		(3.1)		(1.8)		(0.9)		(3.1)		(3.2)		(2.1)		(0.3)		(1.8)		(2.2)
Allstate brand combined ratio		101.7		91.9		95.5		95.2		95.5		94.1		98.3		95.0		96.1		95.7
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		(0.1)		(0.1)		(0.2)		(0.3)		(0.1)		(0.1)		(0.1)		(0.1)		(0.2)		(0.1)

THE ALLSTATE CORPORATION

ALLSTATE BRAND STANDARD AUTO LOSS RATIO OF TOP 5 STATES

	Three months ended									Twelve months ended

		Dec. 31,	Sept. 30,	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,	Dec. 31,	Dec. 31,
		2012	2012	2012	2012	2011	2011	2011	2011	2012	2011

Allstate brand standard auto loss ratio (1)
California		71.2	68.8	71.6	78.4	75.3	73.9	67.9	75.1	72.5	73.0
Florida		72.5	65.6	66.6	71.3	68.6	70.4	73.6	77.3	69.0	72.6
New York (2)		135.2	67.8	67.7	65.2	78.4	83.9	68.2	80.1	83.6	77.6
Pennsylvania		71.0	71.9	70.3	72.7	70.4	70.0	74.9	71.3	71.5	71.6
Texas		66.8	62.5	81.5	74.5	61.9	64.8	75.0	60.7	71.3	65.6

All other states & Canada		68.8	67.0	68.7	67.6	68.3	66.0	74.7	67.6	68.0	69.1

Total Allstate brand standard auto		76.2	66.9	69.9	69.6	69.6	69.3	73.2	70.3	70.7	70.6

(1) Loss ratios include prior year reserve reestimates.

(2) Excluding the impact of Sandy, loss ratios in New York for the three months and twelve months ended December 31, 2012 were 71.0 and 67.9, respectively.

THE ALLSTATE CORPORATION

NON-STANDARD AUTO PROFITABILITY MEASURES

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
($ in millions)		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Net premiums written
Allstate brand	$	159	$	176	$	174	$	189	$	174	$	194	$	197	$	210	$	698	$	775
Encompass brand		-		-		-		-		-		-		-		1		-		1
		159		176		174		189		174		194		197		211		698		776
Net premiums earned
Allstate brand	$	171	$	177	$	184	$	183	$	186	$	196	$	205	$	210	$	715	$	797
Encompass brand		-		-		-		-		-		-		1		1		-		2
		171		177		184		183		186		196		206		211		715		799
Incurred losses
Allstate brand	$	104	$	103	$	112	$	123	$	110	$	112	$	142	$	136	$	442	$	500
Encompass brand		(2)		(2)		-		-		-		1		1		1		(4)		3
		102		101		112		123		110		113		143		137		438		503
Expenses
Allstate brand	$	45	$	43	$	42	$	44	$	49	$	48	$	47	$	48	$	174	$	192
Encompass brand		1		-		-		-		-		1		-		1		1		2
		46		43		42		44		49		49		47		49		175		194
Underwriting Income
Allstate brand	$	22	$	31	$	30	$	16	$	27	$	36	$	16	$	26	$	99	$	105
Encompass brand		1		2		-		-		-		(2)		-		(1)		3		(3	)
		23		33		30		16		27		34		16		25		102		102
Loss ratio
Allstate brand		60.8		58.2		60.9		67.2		59.1		57.1		69.3		64.8		61.8		62.8
Encompass brand		-		-		-		-		-		-		100.0		100.0		-		150.0
Allstate Protection		59.6		57.1		60.9		67.2		59.1		57.7		69.4		64.9		61.2		63.0
Expense ratio
Allstate brand		26.3		24.3		22.8		24.1		26.4		24.5		22.9		22.8		24.4		24.0
Encompass brand		-		-		-		-		-		-		-		100.0		-		100.0
Allstate Protection		26.9		24.3		22.8		24.1		26.4		25.0		22.8		23.3		24.5		24.2
Combined ratio
Allstate brand		87.1		82.5		83.7		91.3		85.5		81.6		92.2		87.6		86.2		86.8
Encompass brand		-		-		-		-		-		-		100.0		200.0		-		250.0
Allstate Protection		86.5		81.4		83.7		91.3		85.5		82.7		92.2		88.2		85.7		87.2
Effect of catastrophe losses on combined ratio
Allstate brand		0.6		1.1		1.6		-		-		0.5		3.9		-		0.8		1.1
Encompass brand		-		-		-		-		-		-		-		-		-		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(7.0)		(4.5)		(1.6)		-		(7.0)		(8.7)		(1.0)		(3.3)		(3.2)		(4.9	)
Encompass brand		-		-		-		-		-		-		(100.0)		-		-		(50.0	)

THE ALLSTATE CORPORATION

AUTO PROFITABILITY MEASURES

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
($ in millions)		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Net premiums written
Allstate brand	$	4,031	$	4,164	$	4,077	$	4,126	$	3,986	$	4,190	$	4,108	$	4,194	$	16,398	$	16,478
Encompass brand		153		163		160		142		147		159		154		145		618		605
Esurance brand		256		282		224		262		181		-		-		-		1,024		181
		4,440		4,609		4,461		4,530		4,314		4,349		4,262		4,339		18,040		17,264
Net premiums earned
Allstate brand	$	4,092	$	4,087	$	4,093	$	4,080	$	4,083	$	4,112	$	4,143	$	4,138	$	16,352	$	16,476
Encompass brand		153		152		153		151		151		154		156		161		609		622
Esurance brand		264		248		234		221		201		-		-		-		967		201
		4,509		4,487		4,480		4,452		4,435		4,266		4,299		4,299		17,928		17,299
Incurred losses
Allstate brand	$	3,092	$	2,720	$	2,846	$	2,836	$	2,823	$	2,824	$	3,024	$	2,896	$	11,494	$	11,567
Encompass brand		116		119		125		118		129		136		123		122		478		510
Esurance brand		215		192		178		161		157		-		-		-		746		157
		3,423		3,031		3,149		3,115		3,109		2,960		3,147		3,018		12,718		12,234
Expenses
Allstate brand	$	1,046	$	1,020	$	1,042	$	1,042	$	1,057	$	1,021	$	1,036	$	1,021	$	4,150	$	4,135
Encompass brand		48		45		42		43		44		45		44		46		178		179
Esurance brand		95		102		95		121		88		-		-		-		413		88
		1,189		1,167		1,179		1,206		1,189		1,066		1,080		1,067		4,741		4,402
Underwriting Income
Allstate brand	$	(46)	$	347	$	205	$	202	$	203	$	267	$	83	$	221	$	708	$	774
Encompass brand		(11)		(12)		(14)		(10)		(22)		(27)		(11)		(7)		(47)		(67	)
Esurance brand		(46)		(46)		(39)		(61)		(44)		-		-		-		(192)		(44	)
		(103)		289		152		131		137		240		72		214		469		663
Loss ratio
Allstate brand		75.6		66.5		69.5		69.5		69.1		68.7		73.0		70.0		70.3		70.2
Encompass brand		75.8		78.3		81.7		78.1		85.4		88.3		78.9		75.8		78.5		82.0
Esurance brand		81.4		77.4		76.1		72.8		78.1		-		-		-		77.2		78.1
Allstate Protection		75.9		67.6		70.3		70.0		70.1		69.4		73.2		70.2		70.9		70.7
Expense ratio
Allstate brand		25.5		25.0		25.5		25.5		25.9		24.8		25.0		24.7		25.4		25.1
Encompass brand		31.4		29.6		27.5		28.5		29.2		29.2		28.2		28.5		29.2		28.8
Esurance brand		36.0		41.1		40.6		54.8		43.8		-		-		-		42.7		43.8
Allstate Protection		26.4		26.0		26.3		27.1		26.8		25.0		25.1		24.8		26.5		25.5
Combined ratio
Allstate brand		101.1		91.5		95.0		95.0		95.0		93.5		98.0		94.7		95.7		95.3
Encompass brand		107.2		107.9		109.2		106.6		114.6		117.5		107.1		104.3		107.7		110.8
Esurance brand		117.4		118.5		116.7		127.6		121.9		-		-		-		119.9		121.9
Allstate Protection		102.3		93.6		96.6		97.1		96.9		94.4		98.3		95.0		97.4		96.2
Effect of catastrophe losses on combined ratio
Allstate brand		8.9		1.2		3.8		1.2		0.2		2.7		6.6		0.4		3.8		2.5
Encompass brand		9.8		1.3		2.6		0.7		0.7		3.2		3.2		-		3.6		1.8
Esurance brand		2.3		0.8		2.6		0.4		-		-		-		-		1.6		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(1.9)		(3.3)		(2.0)		(1.2)		(3.3)		(3.6)		(2.1)		(0.6)		(2.1)		(2.4	)
Encompass brand		(15.0)		(0.7)		(0.7)		0.7		-		6.5		(0.6)		3.1		(3.9)		2.3
Esurance brand		-		-		-		-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio
Esurance brand		7.2		8.1		8.1		18.1		20.9		-		-		-		10.1		20.9

THE ALLSTATE CORPORATION

HOMEOWNERS PROFITABILITY MEASURES

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
($ in millions)		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Net premiums written
Allstate brand	$	1,477	$	1,686	$	1,639	$	1,258	$	1,428	$	1,634	$	1,606	$	1,225	$	6,060	$	5,893
Encompass brand		101		108		104		85		89		100		94		79		398		362
		1,578		1,794		1,743		1,343		1,517		1,734		1,700		1,304		6,458		6,255
Net premiums earned
Allstate brand	$	1,514	$	1,499	$	1,487	$	1,480	$	1,468	$	1,462	$	1,457	$	1,448	$	5,980	$	5,835
Encompass brand		98		96		93		92		92		91		91		91		379		365
		1,612		1,595		1,580		1,572		1,560		1,553		1,548		1,539		6,359		6,200
Incurred losses
Allstate brand	$	1,045	$	735	$	1,218	$	836	$	657	$	1,587	$	2,493	$	983	$	3,834	$	5,720
Encompass brand		121		56		62		51		56		109		98		60		290		323
		1,166		791		1,280		887		713		1,696		2,591		1,043		4,124		6,043
Expenses
Allstate brand	$	377	$	358	$	342	$	351	$	370	$	341	$	324	$	340	$	1,428	$	1,375
Encompass brand		31		30		28		28		29		28		28		28		117		113
		408		388		370		379		399		369		352		368		1,545		1,488
Underwriting Income
Allstate brand	$	92	$	406	$	(73)	$	293	$	441	$	(466)	$	(1,360)	$	125	$	718	$	(1,260	)
Encompass brand		(54)		10		3		13		7		(46)		(35)		3		(28)		(71	)
		38		416		(70)		306		448		(512)		(1,395)		128		690		(1,331	)
Loss ratio
Allstate brand		69.0		49.0		81.9		56.5		44.8		108.6		171.1		67.9		64.1		98.0
Encompass brand		123.5		58.3		66.7		55.4		60.9		119.8		107.7		65.9		76.5		88.5
Allstate Protection		72.3		49.6		81.0		56.4		45.7		109.2		167.4		67.7		64.8		97.5
Expense ratio
Allstate brand		24.9		23.9		23.0		23.7		25.2		23.3		22.2		23.5		23.9		23.6
Encompass brand		31.6		31.3		30.1		30.5		31.5		30.7		30.8		30.8		30.9		31.0
Allstate Protection		25.3		24.3		23.4		24.1		25.6		23.8		22.7		24.0		24.3		24.0
Combined ratio
Allstate brand		93.9		72.9		104.9		80.2		70.0		131.9		193.3		91.4		88.0		121.6
Encompass brand		155.1		89.6		96.8		85.9		92.4		150.5		138.5		96.7		107.4		119.5
Allstate Protection		97.6		73.9		104.4		80.5		71.3		133.0		190.1		91.7		89.1		121.5
Effect of catastrophe losses on combined ratio
Allstate brand		32.0		7.8		40.2		12.6		3.5		55.8		123.2		17.7		23.2		50.0
Encompass brand		77.6		13.5		15.1		6.5		10.9		70.3		61.5		16.5		28.8		39.7
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(5.0)		(4.3)		(3.5)		(7.9)		(2.4)		-		0.3		(2.7)		(5.2)		(1.2	)
Encompass brand		2.0		(8.3)		(4.3)		(2.2)		5.4		(4.4)		(1.1)		1.1		(3.2)		0.3
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		62.4		66.2		64.6		67.0		67.0		73.3		69.4		74.0		65.1		70.9
Effect of catastrophe losses on combined ratio		32.0		7.8		40.2		12.6		3.5		55.8		123.2		17.7		23.2		50.0
Effect of prior year non-catastrophe reserve reestimates on combined ratio		(0.5)		(1.1)		0.1		0.6		(0.5)		2.8		0.7		(0.3)		(0.3)		0.7
Allstate brand combined ratio		93.9		72.9		104.9		80.2		70.0		131.9		193.3		91.4		88.0		121.6
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		(4.5)		(3.2)		(3.6)		(8.5)		(1.9)		(2.8)		(0.4)		(2.4)		(4.9)		(1.9	)

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY POLICIES IN FORCE

	Three months ended

		Dec. 31,	Sept. 30,	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
		2012	2012	2012	2012	2011	2011	2011	2011
Policies in Force (in thousands) (1)

Allstate brand
Allstate Auto Home and Agencies
Standard auto		16,929	16,941	17,046	17,080	17,213	17,286	17,420	17,456
Non-standard auto		508	528	551	570	571	599	599	627
Auto		17,437	17,469	17,597	17,650	17,784	17,885	18,019	18,083
Homeowners (2)		5,974	6,042	6,147	6,259	6,369	6,459	6,555	6,631
Canada		991	975	956	938	924	911	899	882
Involuntary auto		27	28	29	28	28	32	39	42
Excess and surplus (2)		13	12	10	9	-	-	-	-
		24,442	24,526	24,739	24,884	25,105	25,287	25,512	25,638
Emerging Businesses (3)
Renters		1,303	1,300	1,283	1,275	1,262	1,244	1,211	1,177
Condominium		616	615	616	615	615	615	614	612
Landlord		752	754	758	764	771	773	777	780
Other property		1,223	1,230	1,238	1,245	1,257	1,269	1,275	1,280
Specialty property		3,894	3,899	3,895	3,899	3,905	3,901	3,877	3,849
Specialty auto		1,018	1,023	1,010	976	966	972	957	914
Consumer household		4,912	4,922	4,905	4,875	4,871	4,873	4,834	4,763
Commercial lines		283	290	283	281	286	292	299	301
Allstate Roadside Services		1,009	1,025	1,035	1,045	1,043	1,029	1,045	1,039
		6,204	6,237	6,223	6,201	6,200	6,194	6,178	6,103
Total Allstate brand		30,646	30,763	30,962	31,085	31,305	31,481	31,690	31,741
Encompass brand
Standard auto		708	697	687	676	673	671	672	676
Non-standard auto		-	-	-	-	-	1	3	4
Homeowners		327	320	314	309	306	306	307	310
Specialty auto		23	22	22	21	21	21	21	21
Specialty property		116	114	112	111	111	111	111	112
Involuntary auto		4	5	5	5	5	6	7	7
Total Encompass brand		1,178	1,158	1,140	1,122	1,116	1,116	1,121	1,130

Esurance brand standard auto		1,029	962	892	849	786	-	-	-

Total Policies in Force		32,853	32,883	32,994	33,056	33,207	32,597	32,811	32,871


Other Customer Relationships
Good Hands Roadside Members (in thousands) (4)		870	758	656	569	390	129	75	25

(1)	Policies in Force: Policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Allstate Dealer Services (guaranteed automobile protection and vehicle service products sold primarily through auto dealers) and Partnership Marketing Group (roadside assistance products) statistics are not included in total policies in force since these are not available. Additionally, non-proprietary products offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included.
(2)	Beginning in first quarter 2012, excess and surplus lines policies in force are reported separately. Previously, these policy counts were included in the homeowners total. Excess and surplus lines represent policies written by North Light Specialty Insurance Company.
(3)	Emerging Businesses policies in force include statistics for Consumer Household (specialty auto products including motorcycle, trailer, motor home and off-road vehicle insurance policies and specialty property products including renter, landlord, boat, umbrella, manufactured home and condominium insurance policies), Commercial Lines (commercial products for small business owners) and Allstate Roadside Services (roadside assistance products sold by Allstate Motor Club).
(4)	Membership provides pay on demand access to roadside services. Fees for three months ended December 31, 2012 were $150 thousand.

THE ALLSTATE CORPORATION

ALLSTATE BRAND DOMESTIC OPERATING MEASURES AND STATISTICS (1)

	Three months ended																Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

New Issued Applications (in thousands) (2)
Standard auto		445		460		458		463		451		466		472		519		1,826		1,908
Non-standard auto		53		56		58		79		58		61		59		78		246		256
Auto		498		516		516		542		509		527		531		597		2,072		2,164
Homeowners (3)		109		116		116		101		103		116		123		114		442		456
Average Premium - Gross Written ($) (4)
Standard auto		455		450		447		447		450		446		442		439		450		444
Non-standard auto		605		596		601		598		598		586		620		621		600		606
Auto		460		455		452		452		455		451		448		446		455		450
Homeowners		1,104		1,096		1,080		1,065		1,031		1,001		989		975		1,087		999
Average Premium - Net Earned ($) (5)
Standard auto		437		433		433		431		428		429		429		430		433		429
Non-standard auto		544		538		545		542		533		533		573		579		542		555
Auto		440		436		437		434		432		432		434		435		437		433
Homeowners		973		949		925		904		890		871		856		844		937		865
Renewal Ratio (%) (6)
Standard auto		89.0		89.0		89.0		88.7		88.8		89.1		89.2		88.9		88.9		89.0
Non-standard auto		70.6		70.1		71.2		69.1		69.7		70.6		70.8		70.4		70.2		70.4
Auto		88.4		88.3		88.3		88.0		88.0		88.4		88.5		88.1		88.2		88.3
Homeowners		87.5		87.2		87.0		87.4		88.1		88.4		88.4		88.3		87.3		88.3
Bodily Injury Claim Frequency
(% change year-over-year)
Standard auto		(2.1	)	(1.2	)	1.9		(2.1	)	(3.5	)	(3.3	)	(2.3	)	3.1		(0.9	)	(1.6	)
Non-standard auto		(4.0	)	1.3		3.2		(1.0	)	(0.3	)	(5.9	)	(2.4	)	2.3		(0.1	)	(1.6	)
Auto		(2.4	)	(1.4	)	1.6		(2.5	)	(3.8	)	(3.9	)	(2.7	)	2.7		(1.2	)	(2.0	)
Property Damage Claim Frequency
(% change year-over-year)
Standard auto		(3.7	)	(1.2	)	1.4		(4.1	)	(2.6	)	(2.6	)	(3.9	)	1.2		(1.9	)	(2.0	)
Non-standard auto		(3.7	)	(1.9	)	0.9		(1.2	)	1.1		(2.7	)	(1.8	)	0.5		(1.4	)	(0.7	)
Auto		(3.9	)	(1.4	)	1.1		(4.3	)	(2.7	)	(2.9	)	(4.0	)	0.9		(2.1	)	(2.2	)
Auto Paid Severity
(% change year-over-year)
Bodily injury		5.2		6.8		3.4		1.2		1.9		0.2		0.4		3.6		4.1		1.5
Property damage		0.4		3.9		3.0		4.6		5.8		1.0		1.1		0.8		3.0		2.2
Homeowners Excluding Catastrophe Losses
(% change year-over-year)
Claim frequency		(10.0	)	(11.4	)	(6.7	)	(4.8	)	4.5		6.0		(0.8	)	1.7		(8.4	)	2.9
Claim severity		6.0		5.8		2.0		(0.4	)	(1.9	)	3.3		3.4		3.5		3.3		2.1

(1) Measures and statistics presented for Allstate brand exclude the Company’s Canadian operations and specialty auto.

(2) New Issued Applications: Item counts of automobiles or homeowners insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate Protection market segment. Does not include automobiles that are added by existing customers.

(3) Excess and surplus lines are excluded from homeowners new issued applications. All other homeowners statistics include excess and surplus lines.

(4) Average Premium - Gross Written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners.

(5) Average Premium - Net Earned: Earned premium divided by average policies in force for the period. Earned premium includes the impacts from mid-term premium adjustments and ceded reinsurance, but does not include impacts of premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners.

(6) Renewal ratio: Renewal policies issued during the period, based on contract effective dates, divided by the total policies issued 6 months prior for auto or 12 months prior for homeowners.

THE ALLSTATE CORPORATION

HOMEOWNERS SUPPLEMENTAL INFORMATION

($ in millions)

		Twelve months ended December 31, 2012

											Premium rate changes (3)
												Annual impact of
									Effect of			rate changes
		Earned		Incurred			Catastrophe		catastrophes	Number of	Number of	on state specific
Primary Exposure Groupings (1)		premiums		losses	Loss ratios		losses		on loss ratio	catastrophes	states	premiums written

Florida	$	116	$	67	57.8%	$	(11	)	-9.5%
Other hurricane exposure states		3,261		2,148	65.9%		928		28.5%
Total hurricane exposure states (2)		3,377		2,215	65.6%		917		27.2%		20	8.6%
Other catastrophe exposure states		2,982		1,909	64.0%		577		19.3%		30	8.0%

Total	$	6,359	$	4,124	64.9%	$	1,494		23.5%	84	50	8.4%

		2003 to 2012 Historical Information
									Effect of
		Earned		Incurred			Catastrophe		catastrophes
Primary Exposure Groupings (1)		premiums		losses	Loss ratios		losses		on loss ratio

Florida	$	1,665	$	2,383	143.1%	$	1,499		90.0%
Other hurricane exposure states		30,970		25,311	81.7%		11,670		37.7%
Total hurricane exposure states (2)		32,635		27,694	84.9%		13,169		40.4%
Other catastrophe exposure states		28,643		19,760	69.0%		6,701		23.4%

Total	$	61,278	$	47,454	77.4%	$	19,870		32.4%

(1) Basis of Presentation

This homeowners supplemental information schedule displays financial results for the homeowners business (defined to include standard homeowners, scheduled personal property and other than primary residence lines). Each state in which the Company writes business has been categorized into one of two exposure groupings (Hurricane or Other). Hurricane exposure states are comprised of those states in which hurricanes are the primary catastrophe exposure. However, the catastrophe losses for these states include losses due to other kinds of catastrophes. A catastrophe is defined by Allstate as an event that produces pre-tax losses before reinsurance in excess of $1 million, and involves multiple first party policyholders, or an event that produces a number of claims in excess of a preset per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event.

(2) Hurricane Exposure States

Hurricane exposure states include the following coastal locations: Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and Washington, D.C.

(3) Premium Rate Changes

Represents the impact in the states where rate changes were approved during the year as a percentage of total prior year-end premiums written in those states.

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

EFFECT OF CATASTROPHE LOSSES ON THE COMBINED RATIO

($ in millions, except ratios)

										Excludes the effect of catastrophe losses relating to earthquakes and hurricanes
	Effect of all catastrophe losses on the Property-Liability					Premiums		Total		Total		Effect on the
	combined ratio					earned		catastrophe		catastrophe		Property-Liability
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year	year-to-date		losses by year		losses by year		combined ratio
2003	2.2	9.2	6.1	6.5	6.0	$	24,677	$	1,489	$	1,256	5.1
2004	1.6	3.8	26.0	6.2	9.5	25,989		2,468		467		1.8
2005	2.5	2.2	69.4	9.6	21.0	27,039		5,674		460		1.7
2006	1.6	3.7	2.5	4.1	3.0	27,369		810		1,044		3.8
2007	2.4	6.3	5.0	7.0	5.2	27,233		1,409		1,336		4.9
2008	8.4	10.3	26.8	3.9	12.4	26,967		3,342		1,876		7.0
2009	7.8	12.5	6.2	5.0	7.9	26,194		2,069		2,159		8.2
2010	10.0	9.8	5.9	8.3	8.5	25,957		2,207		2,272		8.8
2011	5.2	36.2	16.7	1.0	14.7	25,942		3,815		3,298		12.7
2012	3.9	12.3	3.1	15.7	8.8	26,737		2,345		1,324		5.0

Average	4.6	10.5	16.9	6.8	9.7							5.9

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION CATASTROPHE BY SIZE OF EVENT

($ in millions, except ratios)

Three months ended December 31, 2012
										Average
	Number				Claim and			Combined		catastrophe
	of events				claim expense			ratio impact		loss per event
Size of catastrophe
Greater than $250 million	1	10.0	%	$	1,117	105.3	%	16.6	$	1,117
$101 million to $250 million	-	-			-	-		-		-
$50 million to $100 million	-	-			-	-		-		-
Less than $50 million	9	90.0			47	4.4		0.7		5
Total	10	100.0	%		1,164	109.7		17.3		116
Prior year reserve reestimates					(80)	(7.5)		(1.2)
Prior quarter reserve reestimates					(23)	(2.2)		(0.4)
Total catastrophe losses				$	1,061	100.0	%	15.7

Twelve months ended December 31, 2012
										Average
	Number				Claim and			Combined		catastrophe
Size of catastrophe	of events				claim expense			ratio impact		loss per event
Greater than $250 million	1	1.2	%	$	1,117	47.6	%	4.2	$	1,117
$101 million to $250 million	5	5.9			690	29.4		2.6		138
$50 million to $100 million	4	4.8			301	12.9		1.1		75
Less than $50 million	74	88.1			647	27.6		2.4		9
Total	84	100.0	%		2,755	117.5		10.3		33
Prior year reserve reestimates					(410)	(17.5)		(1.5)
Total catastrophe losses				$	2,345	100.0	%	8.8

2003 through 2012
	Principal										Average
	state with	Number				Claim and			Combined		catastrophe
Size of catastrophe	loss	of events				claim expense			ratio impact		loss per event
Greater than $250 million
Hurricane Katrina - 2005	LA				$	3,583	14.0	%	1.4	$	3,583
Sandy - 2012	NY, NJ					1,117	4.4		0.4		1,117
Hurricane Rita - 2005	TX					891	3.5		0.3		891
Hurricane Ike - 2008	TX					844	3.3		0.3		844
Hurricane Ivan - 2004	FL					630	2.5		0.2		630
Hurricane Charley - 2004	FL					599	2.3		0.2		599
Hurricane Frances - 2004	FL					545	2.1		0.2		545
Hurricane Wilma - 2005	FL					522	2.0		0.2		522
May 2011 Tornados	TX, OH, MO					460	1.8		0.2		460
Hurricane Irene - 2011	NY, NJ, MD					417	1.6		0.2		417
Hurricane Jeanne - 2004	FL					334	1.3		0.2		334
October 2003 Fires	CA					300	1.2		0.1		300
April 27th 2011 Tornados	AL					299	1.2		0.1		299
Arizona Hail - 2010	AZ					284	1.1		0.1		284
Hurricane Gustav - 2008	LA					268	1.1		0.1		268
Greater than $250 million		15	1.9	%		11,093	43.4		4.2		740
$101 million to $250 million		22	2.8			3,439	13.5		1.3		156
$50 million to $100 million		55	6.9			3,810	14.9		1.5		69
Less than $50 million		704	88.4			7,211	28.2		2.7		10
Total		796	100.0	%	$	25,553	100.0	%	9.7		32

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

EFFECT OF PRIOR YEAR RESERVE REESTIMATES ON THE COMBINED RATIO

($ in millions, except ratios)

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Prior Year Reserve Reestimates (1)

Auto	$	(100)	$	(134)	$	(83)	$	(48)	$	(136)	$	(136)	$	(90)	$	(19)	$	(365)	$	(381)
Homeowners		(74)		(72)		(56)		(119)		(30)		(4)		3		(38)		(321)		(69)
Other personal lines		17		15		(22)		(40)		33		12		36		13		(30)		94

Allstate Protection		(157)		(191)		(161)		(207)		(133)		(128)		(51)		(44)		(716)		(356)

Discontinued Lines and Coverages		3		42		3		3		3		11		4		3		51		21

Property-Liability	$	(154)	$	(149)	$	(158)	$	(204)	$	(130)	$	(117)	$	(47)	$	(41)	$	(665)	$	(335)


Allstate brand (2)	$	(134)	$	(181)	$	(151)	$	(205)	$	(142)	$	(132)	$	(49)	$	(48)	$	(671)	$	(371)
Encompass brand (2)		(23)		(10)		(10)		(2)		9		4		(2)		4		(45)		15
Esurance brand		-		-		-		-		-		-		-		-		-		-

Allstate Protection (2)	$	(157)	$	(191)	$	(161)	$	(207)	$	(133)	$	(128)	$	(51)	$	(44)	$	(716)	$	(356)

Effect of Prior Year Reserve
Reestimates on Combined Ratio (1)(3)

Auto		(1.5)		(2.0)		(1.3)		(0.7)		(2.1)		(2.1)		(1.4)		(0.3)		(1.4)		(1.5)
Homeowners		(1.1)		(1.1)		(0.8)		(1.8)		(0.4)		(0.1)		-		(0.6)		(1.2)		(0.3)
Other personal lines		0.3		0.2		(0.3)		(0.6)		0.5		0.2		0.6		0.2		(0.1)		0.4

Allstate Protection		(2.3)		(2.9)		(2.4)		(3.1)		(2.0)		(2.0)		(0.8)		(0.7)		(2.7)		(1.4)

Discontinued Lines and Coverages		-		0.7		-		-		-		0.2		0.1		-		0.2		0.1

Property-Liability		(2.3)		(2.2)		(2.4)		(3.1)		(2.0)		(1.8)		(0.7)		(0.7)		(2.5)		(1.3)


Allstate brand		(2.0)		(2.7)		(2.3)		(3.1)		(2.1)		(2.1)		(0.8)		(0.8)		(2.5)		(1.4)
Encompass brand		(0.3)		(0.2)		(0.1)		-		0.1		0.1		-		0.1		(0.2)		-
Esurance brand		-		-		-		-		-		-		-		-		-		-

Allstate Protection		(2.3)		(2.9)		(2.4)		(3.1)		(2.0)		(2.0)		(0.8)		(0.7)		(2.7)		(1.4)

(1) Favorable reserve reestimates are shown in parentheses.

(2) Favorable reserve reestimates included in catastrophe losses for Allstate Brand, Encompass Brand and Allstate Protection totaled $78 million, $2 million and $80 million in the three months ended December 31, 2012, respectively, compared to $32 million for both Allstate Brand and Allstate Protection in the same period of 2011. Favorable reserve reestimates included in catastrophe losses for Allstate Brand, Encompass Brand and Allstate Protection totaled $388 million, $22 million and $410 million in the twelve months ended December 31, 2012, respectively, compared to $130 million for both Allstate Brand and Allstate Protection in the same period of 2011.

(3) Calculated using Property-Liability premiums earned for the respective period.

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

HISTORICAL PRIOR YEAR RESERVE REESTIMATES (1)

($ in millions)

		Twelve months ended December 31,

		2012			2011			2010			2009			2008

Allstate brand	$	(671	)	$	(371	)	$	(181	)	$	(126	)	$	155
Encompass brand		(45	)		15			(6	)		(10	)		(3	)
Esurance brand		-			-			-			-			-

Allstate Protection		(716	)		(356	)		(187	)		(136	)		152

Discontinued Lines and Coverages		51			21			28			24			18

Property-Liability	$	(665	)	$	(335	)	$	(159	)	$	(112	)	$	170

Effect of Property-Liability prior year reserve reestimates on the combined ratio		(2.5	)		(1.3	)		(0.6	)		(0.4	)		0.7

(1) Favorable reserve reestimates are shown in parentheses.

THE ALLSTATE CORPORATION

HISTORICAL PROPERTY-LIABILITY LOSS RESERVES

($ in millions)

			Twelve months ended December 31,

			2012			2011			2010			2009			2008
(net of reinsurance)

Net reserve for claims and claims expense, beginning of year		$	17,787		$	17,396		$	17,028		$	17,182		$	16,660
Acquisitions			(13	)		425			-			-			-
Claims and claims expense
Provision attributable to the current year			19,149			20,496			19,110			18,858			19,894
Change in provision attributable to prior years (1)			(665	)		(335	)		(159	)		(112	)		170
Total claims and claims expense			18,484			20,161			18,951			18,746			20,064

Payments
Claims and claims expense attributable to current year			(12,545	)		(13,893	)		(12,012	)		(11,906	)		(12,658	)
Claims and claims expense attributable to prior years			(6,435	)		(6,302	)		(6,571	)		(6,994	)		(6,884	)
Total payments			(18,980	)		(20,195	)		(18,583	)		(18,900	)		(19,542	)

Net reserve for claims and claims expense, end of year (2)		$	17,278		$	17,787		$	17,396		$	17,028		$	17,182

Percent change in loss reserves			(2.9	)	%	2.2		%	2.2		%	(0.9	)	%	3.1		%

(1)	Reserve reestimates due to:
	Asbestos and environmental claims	$	48		$	26		$	23		$	5		$	8
	All other property-liability claims		(713	)		(361	)		(182	)		(117	)		162
	Change in pre-tax reserve	$	(665	)	$	(335	)	$	(159	)	$	(112	)	$	170

(2) Net reserves for claims and claims expense are net of expected reinsurance recoveries of $4.01 billion, $2.59 billion, $2.07 billion, $2.14 billion and $2.27 billion at December 31, 2012, 2011, 2010, 2009 and 2008, respectively.

THE ALLSTATE CORPORATION

ASBESTOS AND ENVIRONMENTAL RESERVES

($ in millions)

		Three months ended												Twelve months ended December 31,

		Dec. 31,			Sept. 30,			June 30,			March 31,
		2012			2012			2012			2012			2012			2011			2010			2009			2008
(net of reinsurance)

Asbestos claims
Beginning reserves	$	1,050		$	1,034		$	1,050		$	1,078		$	1,078		$	1,100		$	1,180		$	1,228		$	1,302
Incurred claims and claims expense		-			26			-			-			26			26			5			(8	)		8
Claims and claims expense paid		(24	)		(10	)		(16	)		(28	)		(78	)		(48	)		(85	)		(40	)		(82	)
Ending reserves	$	1,026		$	1,050		$	1,034		$	1,050		$	1,026		$	1,078		$	1,100		$	1,180		$	1,228

Claims and claims expense paid as a percent of ending reserves		2.3	%		1.0	%		1.5	%		2.7	%		7.6	%		4.5	%		7.7	%		3.4	%		6.7	%

Environmental claims
Beginning reserves	$	201		$	181		$	183		$	185		$	185		$	201		$	198		$	195		$	232
Incurred claims and claims expense		-			22			-			-			22			-			18			13			-
Claims and claims expense paid		(8	)		(2	)		(2	)		(2	)		(14	)		(16	)		(15	)		(10	)		(37	)
Ending reserves	$	193		$	201		$	181		$	183		$	193		$	185		$	201		$	198		$	195

Claims and claims expense paid as a percent of ending reserves		4.1	%		1.0	%		1.1	%		1.1	%		7.3	%		8.6	%		7.5	%		5.1	%		19.0	%

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL RESULTS

($ in millions)

		Three months ended																								Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,
		2012			2012			2012			2012			2011			2011			2011			2011			2012			2011

Investments	$	56,999		$	58,155		$	57,734		$	57,620		$	57,373		$	59,068		$	59,659		$	60,484		$	56,999		$	57,373

Premiums	$	299		$	291		$	291		$	287		$	305		$	287		$	286		$	312		$	1,168		$	1,190
Contract charges		267			272			268			266			265			265			261			257			1,073			1,048
Net investment income		665			632			663			687			656			682			694			684			2,647			2,716
Periodic settlements and accruals on non-hedge derivative instruments		10			15			15			15			16			18			19			17			55			70
Contract benefits		(464	)		(453	)		(462	)		(439	)		(430	)		(455	)		(422	)		(454	)		(1,818	)		(1,761	)
Interest credited to contractholder funds		(347	)		(357	)		(362	)		(368	)		(385	)		(395	)		(412	)		(425	)		(1,434	)		(1,617	)
Amortization of deferred policy acquisition costs		(71	)		(117	)		(76	)		(86	)		(78	)		(83	)		(87	)		(95	)		(350	)		(343	)
Operating costs and expenses		(152	)		(147	)		(135	)		(142	)		(159	)		(129	)		(135	)		(132	)		(576	)		(555	)
Restructuring and related charges		-			-			-			-			(3	)		-			-			2			-			(1	)
Income tax expense on operations		(63	)		(39	)		(64	)		(70	)		(57	)		(61	)		(69	)		(53	)		(236	)		(240	)

Operating income		144			97			138			150			130			129			135			113			529			507

Realized capital gains and losses, after-tax		37			(36	)		5			(14	)		43			142			40			25			(8	)		250
Valuation changes on embedded derivatives that are not hedged, after-tax		(6	)		97			(3	)		(6	)		(13	)		(4	)		(3	)		8			82			(12	)
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(4	)		(28	)		-			(10	)		(16	)		(65	)		(5	)		(22	)		(42	)		(108	)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-			4			-			-			-			-			-			3			4			3
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(7	)		(9	)		(10	)		(10	)		(10	)		(12	)		(11	)		(12	)		(36	)		(45	)
Gain (loss) on disposition of operations, after-tax		2			6			2			2			1			2			5			(13	)		12			(5	)

Net income	$	166		$	131		$	132		$	112		$	135		$	192		$	161		$	102		$	541		$	590

THE ALLSTATE CORPORATION

HISTORICAL ALLSTATE FINANCIAL RESULTS

($ in millions)

		As of or for the Year Ended December 31,

		2012				2011			2010			2009			2008

Investments	$	56,999		$		57,373		$	61,582		$	62,216		$	61,449

Premiums		1,168				1,190			1,138			969			943
Contract charges		1,073				1,048			1,030			989			952
Net investment income		2,647				2,716			2,853			3,064			3,811
Periodic settlements and accruals on non-hedge derivative instruments		55				70			51			14			20
Contract benefits		(1,818	)			(1,761	)		(1,815	)		(1,617	)		(1,612	)
Interest credited to contractholder funds		(1,434	)			(1,617	)		(1,798	)		(2,038	)		(2,417	)
Amortization of deferred policy acquisition costs		(350	)			(343	)		(236	)		(337	)		(440	)
Operating costs and expenses		(576	)			(555	)		(568	)		(535	)		(657	)
Restructuring and related charges		-				(1	)		3			(25	)		(1	)
Income tax expense on operations		(236	)			(240	)		(214	)		(148	)		(191	)

Operating income		529				507			444			336			408

Realized capital gains and losses, after-tax		(8	)			250			(337	)		(417	)		(2,034	)
Valuation changes on embedded derivatives that are not hedged, after-tax		82				(12	)		-			-			-
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(42	)			(108	)		(29	)		(153	)		333
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		4				3			(12	)		(219	)		(203	)
Non-recurring items, after-tax (1)		-				-			-			-			(80	)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(36	)			(45	)		(33	)		(9	)		(13	)
Gain (loss) on disposition of operations, after-tax		12				(5	)		9			10			3

Net income (loss)	$	541		$		590		$	42		$	(452	)	$	(1,586	)

Life insurance in force, net of reinsurance	$	326,169		(2)	$	306,397		$	294,149		$	281,961		$	280,042

(1) During the fourth quarter of 2008, for traditional life insurance and immediate annuities with life contingencies, an aggregate premium deficiency of $123 million, pre-tax ($80 million, after-tax) resulted primarily from an experience study indicating that the annuitants on certain life-contingent contracts are projected to live longer than we anticipated when the contracts were issued, and, to a lesser degree, a reduction in the related investment portfolio yield. The deficiency was recorded through a reduction in deferred acquisition costs.

(2) Estimated using the most available information.

ALLSTATE FINANCIAL

RETURN ON ATTRIBUTED EQUITY

($ in millions)

		Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2012			2012			2012			2012			2011			2011			2011			2011
Return on Attributed Equity

Numerator:

Net income (1)	$	541		$	510		$	571		$	600		$	590		$	527		$	417		$	141

Denominator:

Beginning attributed equity (2)	$	7,230		$	7,044		$	6,868		$	6,568		$	6,385		$	6,450		$	5,895		$	5,510
Ending attributed equity		8,446			8,291			7,737			7,475			7,230			7,044			6,868			6,568

Average attributed equity (3)	$	7,838		$	7,668		$	7,303		$	7,022		$	6,808		$	6,747		$	6,382		$	6,039

Return on attributed equity		6.9	%		6.7	%		7.8	%		8.5	%		8.7	%		7.8	%		6.5	%		2.3	%



Operating Income Return on Attributed Equity

Numerator:
Operating income (1)	$	529		$	515		$	547		$	544		$	507		$	472		$	447		$	426

Denominator:
																	��
Beginning attributed equity (2)	$	7,230		$	7,044		$	6,868		$	6,568		$	6,385		$	6,450		$	5,895		$	5,510
Unrealized net capital gains and losses		842			776			792			656			548			685			183			(316)
Adjusted beginning attributed equity		6,388			6,268			6,076			5,912			5,837			5,765			5,712			5,826

Ending attributed equity		8,446			8,291			7,737			7,475			7,230			7,044			6,868			6,568
Unrealized net capital gains and losses		1,678			1,666			1,240			1,073			842			776			792			656
Adjusted ending attributed equity		6,768			6,625			6,497			6,402			6,388			6,268			6,076			5,912

Average adjusted attributed equity (3)	$	6,578		$	6,447		$	6,287		$	6,157		$	6,113		$	6,017		$	5,894		$	5,869

Operating income return on attributed equity		8.0	%		8.0	%		8.7	%		8.8	%		8.3	%		7.8	%		7.6	%		7.3	%

(1) Net income and operating income reflect a trailing twelve-month period.

(2) Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company, the applicable equity for American Heritage Life Investment Corporation, and the equity for Allstate Bank. Allstate Bank’s equity is zero beginning March 31, 2012.

(3) Average attributed equity and average adjusted attributed equity are determined using a two-point average, with the beginning and ending attributed equity and adjusted attributed equity, respectively, for the twelve-month period as data points.

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL PREMIUMS AND CONTRACT CHARGES

($ in millions)

	Three months ended																		Twelve months ended

			Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
			2012		2012		2012		2012		2011		2011		2011		2011		2012		2011
PREMIUMS AND CONTRACT CHARGES -
BY PRODUCT

Underwritten Products
Traditional life insurance premiums		$	123	$	117	$	117	$	113	$	113	$	111	$	109	$	108	$	470	$	441
Accident and health insurance premiums			167		164		160		162		160		160		162		161		653		643
Interest-sensitive life insurance contract charges			265		267		263		260		256		258		253		248		1,055		1,015
			555		548		540		535		529		529		524		517		2,178		2,099
Annuities
Immediate annuities with life contingencies premiums			9		10		14		12		32		16		15		43		45		106
Other fixed annuity contract charges			2		5		5		6		9		7		8		9		18		33
			11		15		19		18		41		23		23		52		63		139
Total		$	566	$	563	$	559	$	553	$	570	$	552	$	547	$	569	$	2,241	$	2,238

PREMIUMS AND CONTRACT CHARGES -
BY DISTRIBUTION CHANNEL

Allstate agencies (1)		$	278	$	261	$	272	$	266	$	264	$	260	$	256	$	251	$	1,077	$	1,031
Workplace enrolling agents			180		174		170		170		171		171		169		168		694		679
Other(2)			108		128		117		117		135		121		122		150		470		528
Total		$	566	$	563	$	559	$	553	$	570	$	552	$	547	$	569	$	2,241	$	2,238

ISSUED LIFE INSURANCE POLICIES BY
DISTRIBUTION CHANNEL(3)

Allstate agencies (1)			50,428		32,076		30,544		29,714		45,053		30,006		29,794		25,709		142,762		130,562
Other			1,006		766		780		876		812		885		931		981		3,428		3,609
Total			51,434		32,842		31,324		30,590		45,865		30,891		30,725		26,690		146,190		134,171

ALLSTATE BENEFITS NEW BUSINESS
WRITTEN PREMIUMS(4)		$	136	$	62	$	59	$	53	$	120	$	64	$	57	$	50	$	310	$	291

(1) Includes products directly sold through call centers and internet.

(2) Primarily represents independent master brokerage agencies, and to a lesser extent, specialized brokers.

(3) Excludes Allstate Benefits and non-proprietary products.

(4) New business written premiums reflect annualized premiums at initial customer enrollment (including new accounts and new employees or policies of existing accounts), reduced by an estimate for certain policies that are expected to lapse. A significant portion of Allstate Benefits’s business is seasonally written in the fourth quarter during many clients’ annual employee benefits enrollment.

THE ALLSTATE CORPORATION

CHANGE IN CONTRACTHOLDER FUNDS

($ in millions)

	Three months ended																									Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,				Dec. 31,
		2012			2012			2012			2012			2011			2011			2011			2011			2012				2011

Beginning balance	$	40,110		$	40,832		$	41,603		$	42,332		$	43,776		$	45,078		$	46,834		$	48,195		$	42,332			$	48,195

Deposits
Fixed annuities		318			272			185			153			228			133			142			164			928				667
Interest-sensitive life insurance		357			323			335			332			325			320			316			330			1,347				1,291
Bank deposits		-			-			-			-			18			33			97			212			-				360
Total deposits		675			595			520			485			571			486			555			706			2,275		��		2,318

Interest credited		362			213			369			379			406			400			413			410			1,323				1,629

Maturities, benefits, withdrawals and other adjustments
Benefits		(434	)		(341	)		(331	)		(357	)		(326	)		(396	)		(367	)		(372	)		(1,463	)			(1,461	)
Surrenders and partial withdrawals		(1,157	)		(941	)		(949	)		(943	)		(1,052	)		(1,351	)		(1,513	)		(1,019	)		(3,990	)			(4,935	)
Bank withdrawals		-			-			-			-			(817	)		(162	)		(210	)		(274	)		-				(1,463	)
Maturities of and interest payments on institutional products		(48	)		(1	)		(88	)		(1	)		(48	)		(26	)		(306	)		(487	)		(138	)			(867	)
Contract charges		(272	)		(264	)		(266	)		(264	)		(265	)		(257	)		(255	)		(251	)		(1,066	)			(1,028	)
Net transfers from separate accounts		4			3			2			2			3			3			3			3			11				12
Fair value hedge adjustments for institutional products		-			-			-			-			-			-			-			(34	)		-				(34	)
Other adjustments		79			14			(28	)		(30	)		84			1			(76	)		(43	)		35				(34	)
Total maturities, benefits, withdrawals and other adjustments		(1,828	)		(1,530	)		(1,660	)		(1,593	)		(2,421	)		(2,188	)		(2,724	)		(2,477	)		(6,611	)			(9,810	)

Ending balance	$	39,319		$	40,110		$	40,832		$	41,603		$	42,332		$	43,776		$	45,078		$	46,834		$	39,319			$	42,332

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL ANALYSIS OF NET INCOME

($ in millions)

	Three months ended																									Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,
		2012			2012			2012			2012			2011			2011			2011			2011			2012			2011

Benefit spread
Premiums	$	299		$	291		$	291		$	287		$	305		$	287		$	286		$	312		$	1,168		$	1,190
Cost of insurance contract charges (1)		173			180			173			170			168			167			162			162			696			659
Contract benefits excluding the implied interest on immediate annuities with life contingencies (2)		(331	)		(318	)		(326	)		(305	)		(294	)		(320	)		(287	)		(319	)		(1,280	)		(1,220	)
Total benefit spread		141			153			138			152			179			134			161			155			584			629

Investment spread
Net investment income		665			632			663			687			656			682			694			684			2,647			2,716
Implied interest on immediate annuities with life contingencies (2)		(133	)		(135	)		(136	)		(134	)		(136	)		(135	)		(135	)		(135	)		(538	)		(541	)
Interest credited to contractholder funds		(357	)		(215	)		(366	)		(378	)		(405	)		(405	)		(417	)		(418	)		(1,316	)		(1,645	)
Total investment spread		175			282			161			175			115			142			142			131			793			530

Surrender charges and contract maintenance expense fees (1)		94			92			95			96			97			98			99			95			377			389
Realized capital gains and losses		56			(56	)		8			(21	)		68			219			62			39			(13	)		388
Amortization of deferred policy acquisition costs		(77	)		(146	)		(77	)		(101	)		(101	)		(180	)		(93	)		(120	)		(401	)		(494	)
Operating costs and expenses		(152	)		(147	)		(135	)		(142	)		(159	)		(129	)		(135	)		(132	)		(576	)		(555	)
Restructuring and related charges		-			-			-			-			(3	)		-			-			2			-			(1	)
Gain (loss) on disposition of operations		3			9			3			3			2			4			7			(20	)		18			(7	)
Income tax expense		(74	)		(56	)		(61	)		(50	)		(63	)		(96	)		(82	)		(48	)		(241	)		(289	)

Net income	$	166		$	131		$	132		$	112		$	135		$	192		$	161		$	102		$	541		$	590

Benefit spread by product group
Life insurance	$	79		$	90		$	87		$	91		$	74		$	90		$	98		$	93		$	347		$	355
Accident and health insurance		82			76			72			73			114			70			71			74			303			329
Annuities		(20	)		(13	)		(21	)		(12	)		(9	)		(26	)		(8	)		(12	)		(66	)		(55	)
Total benefit spread	$	141		$	153		$	138		$	152		$	179		$	134		$	161		$	155		$	584		$	629

Investment spread by product group
Annuities and institutional products	$	85		$	39		$	71		$	97		$	43		$	54		$	55		$	36		$	292		$	188
Life insurance		21			23			20			18			12			17			14			11			82			54
Allstate Bank products		-			-			-			-			2			6			6			8			-			22
Accident and health insurance		6			7			6			6			5			4			5			5			25			19
Net investment income on investments supporting capital		72			64			68			64			73			67			66			59			268			265
Investment spread before valuation changes on embedded derivatives that are not hedged		184			133			165			185			135			148			146			119			667			548
Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged		(9	)		149			(4	)		(10	)		(20	)		(6	)		(4	)		12			126			(18	)
Total investment spread	$	175		$	282		$	161		$	175		$	115		$	142		$	142		$	131		$	793		$	530

(1) Reconciliation of contract charges
Cost of insurance contract charges	$	173		$	180		$	173		$	170		$	168		$	167		$	162		$	162		$	696		$	659
Surrender charges and contract maintenance expense fees		94			92			95			96			97			98			99			95			377			389
Total contract charges	$	267		$	272		$	268		$	266		$	265		$	265		$	261		$	257		$	1,073		$	1,048

(2) Reconciliation of contract benefits
Contract benefits excluding the implied interest on immediate annuities with life contingencies	$	(331	)	$	(318	)	$	(326	)	$	(305	)	$	(294	)	$	(320	)	$	(287	)	$	(319	)	$	(1,280	)	$	(1,220	)
Implied interest on immediate annuities with life contingencies		(133	)		(135	)		(136	)		(134	)		(136	)		(135	)		(135	)		(135	)		(538	)		(541	)
Total contract benefits	$	(464	)	$	(453	)	$	(462	)	$	(439	)	$	(430	)	$	(455	)	$	(422	)	$	(454	)	$	(1,818	)	$	(1,761	)

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS

	Three months ended December 31, 2012						Three months ended December 31, 2011

	Weighted average		Weighted average		Weighted average		Weighted average		Weighted average		Weighted average
	investment yield		interest crediting rate		investment spreads		investment yield		interest crediting rate		investment spreads

Interest-sensitive life insurance	5.1	%	4.0	%	1.1	%	5.3	%	4.2	%	1.1	%
Deferred fixed annuities and institutional products	4.8		3.2		1.6		4.5		3.2		1.3
Immediate fixed annuities with and without life contingencies	6.9		6.1		0.8		6.2		6.2		-
Investments supporting capital, traditional life and other products	4.1		n/a		n/a		4.0		n/a		n/a


	Twelve months ended December 31, 2012						Twelve months ended December 31, 2011

	Weighted average		Weighted average		Weighted average		Weighted average		Weighted average		Weighted average
	investment yield		interest crediting rate		investment spreads		investment yield		interest crediting rate		investment spreads

Interest-sensitive life insurance	5.2	%	4.0	%	1.2	%	5.4	%	4.2	%	1.2	%
Deferred fixed annuities and institutional products	4.6		3.2		1.4		4.6		3.3		1.3
Immediate fixed annuities with and without life contingencies	6.9		6.1		0.8		6.3		6.2		0.1
Investments supporting capital, traditional life and other products	4.0		n/a		n/a		3.9		n/a		n/a

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL SUPPLEMENTAL PRODUCT INFORMATION

($ in millions)

		As of December 31, 2012				Twelve months ended December 31, 2012	Twelve months ended
							Dec.		Sept.		June		March		Dec.
				Attributed equity			2012		2012		2012		2012		2011
		Reserves and		excluding unrealized		Operating	Operating income return
		Contractholder funds		capital gains/losses (3)(4)		income (5)	on attributed equity (%)
Underwritten products
Life insurance	$	14,317	$	2,603	$	224	9.0	%	9.0	%	10.8	%	11.3	%	11.2	%
Accident and health insurance		2,013		644		80	12.7		16.6		16.3		15.9		16.2
Subtotal		16,330		3,247		304	9.7		10.6		11.9		12.2		12.3
Annuities and institutional and bank products:
Deferred Annuities		22,542		1,954		197	9.8		9.1		9.2		9.2		9.2
Immediate Annuities:
Sub-standard structured settlements and group pension terminations (1)		5,171		1,005		(7)	(0.7)		(0.7)		(0.7)		(1.0)		(2.9)
Standard structured settlements and SPIA (2)		8,304		504		39	9.0		5.3		5.3		5.7		(0.3)
Subtotal		13,475		1,509		32	2.4		1.1		1.1		0.9		(2.2)
Institutional products		1,867		58		(4)
Subtotal		37,884		3,521		225	6.5		5.7		5.9		5.9		4.9
Total Allstate Financial	$	54,214	$	6,768	$	529	8.0		8.0		8.7		8.8		8.3

		Twelve months ended December 31, 2012
		Life		Accident and		Annuities and		Allstate
		insurance		health insurance		institutional products		Financial

Operating income	$	224	$	80	$	225	$	529
Realized capital gains and losses, after-tax		6		1		(15)		(8)
Valuation changes on embedded derivatives that are not hedged, after-tax		-		-		82		82
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(11)		-		(31)		(42)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		4		-		-		4
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		-		(37)		(36)
Gain on disposition of operations, after-tax		2		-		10		12
Net income	$	226	$	81	$	234	$	541

(1)	Structured settlement annuities for annuitants with severe injuries or other health impairments which significantly reduced their life expectancy at the time the annuity was issued and group annuity contracts issued to sponsors of terminated pension plans.
(2)	Life-contingent structured settlement annuities for annuitants with standard life expectancy, period certain structured settlements and single premium immediate annuities with and without life contingencies.
(3)	Total Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company, the applicable equity for American Heritage Life Investment Corporation, and the equity for Allstate Bank. Allstate Bank’s equity is zero beginning March 31, 2012.
(4)	Attributed equity is allocated to each product line based on statutory capital adjusted for GAAP reporting differences and the amount of capital held in Allstate Financial may vary from economic capital. The calculation of statutory capital by product incorporates internal factors for invested asset risk, insurance risk (mortality and morbidity), interest rate risk and business risk. Due to the unavailability of final statutory financial statements at the time we release our GAAP financial results, the allocation is derived from average statutory capital over the prior four quarters. Statutory capital is adjusted for appropriate GAAP accounting differences. Changes in internal capital factors, investment portfolio mix and risk as well as changes in GAAP and statutory reporting differences will result in changes to the allocation of attributed equity to products.
(5)	Product line operating income includes allocation of income on investments supporting capital. Operating income reflects a trailing twelve-month period.

THE ALLSTATE CORPORATION

CORPORATE AND OTHER RESULTS

($ in millions)

	Three months ended																	Twelve months ended

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012		2012		2012		2012		2011		2011		2011		2011		2012		2011

Net investment income	$	6	$	9	$	11	$	11	$	10	$	14	$	16	$	14	$	37	$	54
Operating costs and expenses		(96)		(90)		(107)		(86)		(88)		(116)		(98)		(91)		(379)		(393)
Income tax benefit on operations		35		34		33		34		29		31		32		31		136		123

Operating loss		(55)		(47)		(63)		(41)		(49)		(71)		(50)		(46)		(206)		(216)


Business combination expenses, after-tax		-		-		-		-		(10)		-		-		-		-		(10)
Realized capital gains and losses, after-tax		3		-		-		-		5		13		2		-		3		20
Net loss	$	(52)	$	(47)	$	(63)	$	(41)	$	(54)	$	(58)	$	(48)	$	(46)	$	(203)	$	(206)

THE ALLSTATE CORPORATION

INVESTMENTS

($ in millions)

	PROPERTY-LIABILITY										ALLSTATE FINANCIAL

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
		2012		2012		2012		2012		2011		2012		2012		2012		2012		2011

Fixed income securities, at fair value:
Tax-exempt	$	7,419	$	8,002	$	7,915	$	7,634	$	8,239	$	3	$	28	$	29	$	37	$	38
Taxable		22,262		21,787		21,578		21,272		19,562		45,793		46,317		46,390		46,232		46,252
Equity securities, at fair value		3,671		3,660		3,470		3,636		4,165		366		216		211		211		198
Mortgage loans		493		498		494		494		474		6,077		6,406		6,434		6,673		6,665
Limited partnership interests		2,991		3,106		2,877		2,889		3,055		1,924		1,860		1,806		1,729		1,612
Short-term, at fair value		912		756		699		608		451		907		1,320		893		681		645
Other		467		200		253		192		52		1,929		2,008		1,971		2,057		1,963
Total	$	38,215	$	38,009	$	37,286	$	36,725	$	35,998	$	56,999	$	58,155	$	57,734	$	57,620	$	57,373

Fixed income securities, at amortized cost:
Tax-exempt	$	7,061	$	7,616	$	7,592	$	7,350	$	7,935	$	3	$	28	$	29	$	36	$	37
Taxable		21,311		20,752		20,878		20,742		19,188		42,043		42,495		43,464		43,936		44,259
Ratio of fair value to amortized cost		104.6%		105.0%		103.6%		102.9%		102.5%		108.9%		109.0%		106.7%		105.2%		104.5%
Equity securities, at cost	$	3,250	$	3,271	$	3,270	$	3,270	$	4,044	$	327	$	158	$	160	$	160	$	159
Short-term, at amortized cost		912		756		699		608		451		907		1,320		893		681		645


	CORPORATE AND OTHER										CONSOLIDATED

		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
		2012		2012		2012		2012		2011		2012		2012		2012		2012		2011

Fixed income securities, at fair value:
Tax-exempt	$	616	$	724	$	775	$	748	$	728	$	8,038	$	8,754	$	8,719	$	8,419	$	9,005
Taxable		924		871		1,239		1,300		1,294		68,979		68,975		69,207		68,804		67,108
Equity securities, at fair value		-		-		-		-		-		4,037		3,876		3,681		3,847		4,363
Mortgage loans		-		-		-		-		-		6,570		6,904		6,928		7,167		7,139
Limited partnership interests		7		8		11		19		30		4,922		4,974		4,694		4,637		4,697
Short-term, at fair value		517		749		275		597		195		2,336		2,825		1,867		1,886		1,291
Other		-		-		-		-		-		2,396		2,208		2,224		2,249		2,015
Total	$	2,064	$	2,352	$	2,300	$	2,664	$	2,247	$	97,278	$	98,516	$	97,320	$	97,009	$	95,618

Fixed income securities, at amortized cost:
Tax-exempt	$	580	$	684	$	739	$	714	$	689	$	7,644	$	8,328	$	8,360	$	8,100	$	8,661
Taxable		917		857		1,223		1,282		1,271		64,271		64,104		65,565		65,960		64,718
Ratio of fair value to amortized cost		102.9%		103.5%		102.7%		102.6%		103.2%		107.1%		107.3%		105.4%		104.3%		103.7%
Equity securities, at cost	$	-	$	-	$	-	$	-	$	-	$	3,577	$	3,429	$	3,430	$	3,430	$	4,203
Short-term, at amortized cost		517		749		275		597		195		2,336		2,825		1,867		1,886		1,291

THE ALLSTATE CORPORATION

INVESTMENT PORTFOLIO DETAILS

($ in millions)

		Financial statement classification as of December 31, 2012


								Limited
		Fixed income		Equity		Mortgage		partnership		Short-
		securities		securities		loans		interests		term		Other		Total

Infrastructure and real assets
Infrastructure and real assets - debt (1)	$	15,143	$	-	$	-	$	-	$	-	$	-	$	15,143
Infrastructure and real assets - equity (1)		-		295		-		479		-		-		774
		15,143		295		-		479		-		-		15,917
Real estate
Real estate - debt		4,530		-		6,570		-		-		-		11,100
Real estate - equity		-		120				1,563				125		1,808
Tax credit funds		-		-		-		669		-		-		669
		4,530		120		6,570		2,232		-		125		13,577
Consumer goods (cyclical and non-cyclical)		10,960		755		-		-		-		-		11,715

Banking & financial services
Banking		3,847		169		-		-		-		-		4,016
Financial services (1)		4,126		215		-		-		-		-		4,341
Credit card and student loan ABS		637		-		-		-		-		-		637
Consumer auto ABS		486		-		-		-		-		-		486
		9,096		384		-		-		-		-		9,480
Municipal - General obligation, revenue and taxable		9,409		-		-		-		-		-		9,409
Government & agencies
U.S. government and agencies		4,713		-		-		-		703		-		5,416
Foreign government		2,020		-		-		-		-		-		2,020
		6,733		-		-		-		703		-		7,436
Technology and communications
Communications		3,183		134		-		-		-		-		3,317
Technology		2,498		252		-		-		-		-		2,750
		5,681		386		-		-		-		-		6,067
Capital goods		5,690		189		-		-		-		-		5,879
Basic & other industies
Basic industry		2,814		163		-		-		-		-		2,977
Other industries (1)		1,202		-		-		-		-		-		1,202
		4,016		163		-		-		-		-		4,179
Transportation		2,761		53		-		-		-		-		2,814
ABS other		2,501		-		-		-		-		-		2,501
Private equity		-		-		-		1,872		-		-		1,872
Emerging markets
Fixed income funds		-		808		-		-		-		-		808
Foreign government (2)		497		-		-		-		-		-		497
Equity index based funds		-		436		-		-		-		-		436
		497		1,244		-		-		-		-		1,741
Other equity market index based funds		-		448		-		-		-		-		448
Hedge funds		-		-		-		339		-		-		339
Other (3)		-		-		-		-		1,633		2,271		3,904
Total investments	$	77,017	$	4,037	$	6,570	$	4,922	$	2,336	$	2,396	$	97,278

(1)	Includes municipal bonds
(2)	Includes emerging market soverign debt of $487 million.
(3)	Other includes derivatives, policy loans, agent loans, bank loans and short-term investments.

THE ALLSTATE CORPORATION

UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE

($ in millions)

		December 31, 2012					September 30, 2012					June 30, 2012

		Unrealized net			Fair value		Unrealized net			Fair value		Unrealized net			Fair value
		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of
		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)
Fixed income securities
U.S. government and agencies	$	326	$	4,713	107.4	$	371	$	4,772	108.4	$	374	$	5,246	107.7
Municipal		930		13,069	107.7		922		13,970	107.1		805		13,892	106.2
Corporate		3,594		48,537	108.0		3,810		48,154	108.6		3,025		47,254	106.8
Foreign government		227		2,517	109.9		240		2,255	111.9		227		2,169	111.7
Asset-backed securities (“ABS”)		1		3,624	100.0		(30)		3,673	99.2		(105)		3,949	97.4
Residential mortgage-backed securities (“RMBS”)		32		3,032	101.1		4		3,348	100.1		(212)		3,675	94.5
Commercial mortgage-backed securities (“CMBS”)		(12)		1,498	99.2		(25)		1,530	98.4		(115)		1,716	93.7
Redeemable preferred stock		4		27	117.4		5		27	122.7		2		25	108.7
Total fixed income securities		5,102		77,017	107.1		5,297		77,729	107.3		4,001		77,926	105.4

Equity securities		460		4,037	112.9		447		3,876	113.0		251		3,681	107.3
Short-term investments		-		2,336	100.0		-		2,825	100.0		-		1,867	100.0
Derivatives		(22)		133	85.8		(19)		251	93.0		(16)		187	92.1
EMA limited partnership interests (2)		7		n/a	n/a		6		n/a	n/a		4		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	5,547	$	83,523	107.1	$	5,731	$	84,681	107.3	$	4,240	$	83,661	105.3

Amounts recognized for:
Insurance reserves (3)		(771)					(876)					(700)
DAC and DSI (4)		(412)					(420)					(352)
Amounts recognized		(1,183)					(1,296)					(1,052)
Deferred income taxes		(1,530)					(1,555)					(1,118)
Unrealized net capital gains and losses, after-tax	$	2,834				$	2,880				$	2,070

		March 31, 2012					December 31, 2011					September 30, 2011

		Unrealized net			Fair value		Unrealized net			Fair value		Unrealized net			Fair value
		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of
		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)
Fixed income securities
U.S. government and agencies	$	282	$	5,541	105.4	$	349	$	6,315	105.8	$	337	$	4,346	108.4
Municipal		644		13,614	105.0		607		14,241	104.5		554		14,999	103.8
Corporate		2,512		46,331	105.7		2,364		43,581	105.7		2,194		44,529	105.2
Foreign government		195		1,989	110.9		215		2,081	111.5		192		2,133	109.9
ABS		(130)		4,242	97.0		(214)		3,966	94.9		(204)		3,906	95.0
RMBS		(231)		3,728	94.2		(411)		4,121	90.9		(395)		4,632	92.1
CMBS		(111)		1,753	94.0		(178)		1,784	90.9		(221)		1,824	89.2
Redeemable preferred stock		2		25	108.7		2		24	109.1		2		25	108.7
Total fixed income securities		3,163		77,223	104.3		2,734		76,113	103.7		2,459		76,394	103.3

Equity securities		417		3,847	112.2		160		4,363	103.8		(95)		4,157	97.8
Short-term investments		-		1,886	100.0		-		1,291	100.0		-		3,517	100.0
Derivatives		(21)		273	92.9		(17)		168	90.8		(15)		244	94.2
EMA limited partnership interests (2)		1		n/a	n/a		2		n/a	n/a		7		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	3,560	$	83,229	104.5	$	2,879	$	81,935	103.6	$	2,356	$	84,312	102.9

Amounts recognized for:
Insurance reserves (3)		(443)					(594)					(603)
DAC and DSI (4)		(230)					(124)					(109)
Amounts recognized		(673)					(718)					(712)
Deferred income taxes		(1,013)					(761)					(579)
Unrealized net capital gains and losses, after-tax	$	1,874				$	1,400				$	1,065

(1) The comparison of percentages from period to period may be distorted by investment transactions such as sales, purchases and impairment write-downs.

(2) Unrealized net capital gains and losses for limited partnership interest represent the Company’s share of Equity Method of Accounting (“EMA”) limited partnerships’ other comprehensive income. Fair value and amortized cost are not applicable.

(3) The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. Although we evaluate premium deficiencies on the combined performance of our life insurance and immediate annuities with life contingencies, the adjustment primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.

(4) The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.

THE ALLSTATE CORPORATION

NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX)

($ in millions)

	Three months ended																									Twelve months ended

		Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,
		2012			2012			2012			2012			2011			2011			2011			2011			2012			2011
NET INVESTMENT INCOME
Fixed income securities	$	793		$	817		$	818		$	806		$	823		$	862		$	899		$	900		$	3,234		$	3,484
Equity securities		53			29			24			21			46			23			34			19			127			122
Mortgage loans		97			92			92			93			92			91			87			89			374			359
Limited partnership interests (1)		110			22			107			109			27			33			18			10			348			88
Short-term		2			2			1			1			1			2			1			2			6			6
Other		35			33			34			30			31			27			26			11			132			95
Sub-total		1,090			995			1,076			1,060			1,020			1,038			1,065			1,031			4,221			4,154
Less: Investment expense		(57)			(55)			(50)			(49)			(45)			(44)			(45)			(49)			(211)			(183)
Net investment income	$	1,033		$	940		$	1,026		$	1,011		$	975		$	994		$	1,020		$	982		$	4,010		$	3,971

PRE-TAX YIELDS (2)
Fixed income securities		4.4	%		4.5	%		4.4	%		4.4	%		4.5	%		4.6	%		4.6	%		4.6	%		4.4	%		4.6	%
Equity securities		6.1			3.4			2.8			2.2			4.3			2.2			3.3			1.9			3.5			2.9
Mortgage loans		5.7			5.4			5.2			5.2			5.2			5.2			5.2			5.4			5.4			5.3
Limited partnership interests		8.9			1.8			9.2			9.3			7.4			9.4			5.2			2.8			7.3			6.2
Total portfolio		4.7			4.3			4.6			4.6			4.5			4.5			4.5			4.3			4.6			4.4

REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(54)		$	(43)		$	(49)		$	(39)		$	(122)		$	(190)		$	(70)		$	(114)		$	(185)		$	(496)
Change in intent write-downs		-			(3)			(1)			(44)			(2)			(13)			(16)			(69)			(48)			(100)
Net other-than-temporary impairment
losses recognized in earnings		(54)			(46)			(50)			(83)			(124)			(203)			(86)			(183)			(233)			(596)
Sales		261			(24)			70			229			220			692			141			283			536			1,336
Valuation of derivative instruments		(12)			-			(10)			11			(9)			(254)			(50)			22			(11)			(291)
Settlements of derivative instruments		9			(2)			17			11			(33)			20			(3)			(89)			35			(105)
EMA limited partnership income (1)		-			-			-			-			32			9			55			63			-			159
Total	$	204		$	(72)		$	27		$	168		$	86		$	264		$	57		$	96		$	327		$	503

TOTAL RETURN ON INVESTMENT PORTFOLIO (3)(4)		1.1	%		2.4	%		1.8	%		2.0	%		1.8	%		1.1	%		2.2	%		1.5	%		7.3	%		6.6	%

AVERAGE INVESTMENT BALANCES (in billions) (4)	$	92.2		$	92.9		$	93.2		$	93.1		$	93.9		$	96.0		$	97.4		$	98.5		$	92.7		$	96.3

(1)	Income from EMA limited partnerships is reported in net investment income in 2012 and realized capital gains and losses in 2011.
(2)	Pre-tax yields are calculated as annualized investment income (including dividend income in the case of equity securities) divided by the average of investment balances at the end of each quarter during the year. Investment balances, for purposes of the pre-tax yield calculation, exclude unrealized capital gains and losses. EMA limited partnership interests are included in the 2012 yields since their 2012 income is reported in net investment income.
(3)	Total return on investment portfolio is calculated from GAAP results including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans and cost method limited partnerships, divided by the average investment balances.
(4)	Average investment balances for the quarter are calculated as the average of the current and prior quarter investment balances. Year-to-date average investment balances are calculated as the average of investment balances at the beginning of the year and the end of each quarter during the year. For purposes of the average investment balances calculation, unrealized capital gains and losses are excluded.

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX)

($ in millions)

	Three months ended																																	Twelve months ended

		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,				Dec. 31,
		2012				2012				2012				2012				2011				2011				2011				2011				2012				2011
NET INVESTMENT INCOME
Fixed income securities:
Tax-exempt	$	71			$	81			$	82			$	87			$	96			$	100			$	108			$	111			$	321			$	415
Taxable		188				194				192				178				170				176				180				169				752				695
Equity securities		49				28				22				19				44				20				32				18				118				114
Mortgage loans		5				5				5				6				4				3				1				-				21				8
Limited partnership interests (1) (2)		68				11				68				41				12				15				7				5				188				39
Short-term		2				-				1				1				1				1				-				1				4				3
Other		5				4				3				2				1				-				1				1				14				3
Subtotal		388				323				373				334				328				315				329				305				1,418				1,277
Less: Investment expense		(26	)			(24	)			(21	)			(21	)			(19	)			(17	)			(19	)			(21	)			(92	)			(76	)
Net investment income	$	362			$	299			$	352			$	313			$	309			$	298			$	310			$	284			$	1,326			$	1,201
Net investment income, after-tax	$	258			$	220			$	254			$	232			$	233			$	225			$	236			$	219			$	964			$	913

PRE-TAX YIELDS (3)
Fixed income securities:
Tax-exempt		3.9		%		4.2		%		4.4		%		4.6		%		4.6		%		4.6		%		4.9		%		4.8		%		4.3		%		4.8		%
Equivalent yield for tax-exempt		5.7				6.1				6.4				6.7				6.7				6.7				7.1				7.0				6.3				7.0
Taxable		3.6				3.7				3.7				3.6				3.7				3.9				3.8				3.6				3.7				3.8
Equity securities		6.1				3.3				2.7				2.1				4.3				1.9				3.3				1.9				3.5				2.8
Mortgage loans		4.1				4.3				4.2				4.5				4.2				4.5				3.2				6.7				4.3				4.0
Limited partnership interests		8.9				1.5				9.5				5.5				6.3				8.8				4.2				2.9				6.3				5.6
Total portfolio		4.3				3.6				4.2				3.8				4.0				3.9				4.0				3.7				3.9				3.9

REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
Fixed income securities:
Tax-exempt	$	23			$	8			$	(4	)		$	25			$	5			$	30			$	(16	)		$	(13	)		$	52			$	6
Taxable		98				1				15				(5	)			28				119				9				(29	)			109				127
Equity securities		25				(14	)			13				159				3				(77	)			(2	)			124				183				48
Limited partnership interests (2)		1				-				1				11				33				(3	)			20				46				13				96
Derivatives and other		(4	)			(11	)			(6	)			(1	)			(57	)			(45	)			(19	)			(71	)			(22	)			(192	)
Total	$	143			$	(16	)		$	19			$	189			$	12			$	24			$	(8	)		$	57			$	335			$	85

REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE																																��
Impairment write-downs	$	(41	)		$	(31	)		$	(43	)		$	(19	)		$	(54	)		$	(105	)		$	(27	)		$	(64	)		$	(134	)		$	(250	)
Change in intent write-downs		-				(2	)			(1	)			(28	)			(1	)			(10	)			(11	)			(27	)			(31	)			(49	)
Net other-than-temporary impairment losses recognized in earnings		(41	)			(33	)			(44	)			(47	)			(55	)			(115	)			(38	)			(91	)			(165	)			(299	)
Sales		187				27				60				237				82				186				29				172				511				469
Valuation of derivative instruments		(2	)			3				1				3				(12	)			(56	)			(12	)			26				5				(54	)
Settlements of derivative instruments		(1	)			(13	)			2				(4	)			(36	)			11				(7	)			(95	)			(16	)			(127	)
EMA limited partnership income (2)		-				-				-				-				33				(2	)			20				45				-				96
Total	$	143			$	(16	)		$	19			$	189			$	12			$	24			$	(8	)		$	57			$	335			$	85

AVERAGE INVESTMENT BALANCES (in billions) (4)	$	36.3			$	36.1			$	35.8			$	35.4			$	34.9			$	34.9			$	35.0			$	34.7			$	35.9			$	34.9

(1) As of December 31, 2012, Property-Liability has commitments to invest in additional limited partnership interests totaling $1.13 billion.

(2) Income from EMA limited partnerships is reported in net investment income in 2012 and realized capital gains and losses in 2011.

(3) Pre-tax yields are calculated as annualized investment income (including dividend income in the case of equity securities) divided by the average of investment balances at the end of each quarter during the year. Investment balances, for purposes of the pre-tax yield calculation, exclude unrealized capital gains and losses. EMA limited partnership interests are included in the 2012 yields since their 2012 income is reported in net investment income.

(4) Average investment balances for the quarter are calculated as the average of the current and prior quarter investment balances. Year-to-date average investment balances are calculated as the average of investment balances at the beginning of the year and the end of each quarter during the year. For purposes of the average investment balances calculation, unrealized capital gains and losses are excluded.

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL

NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX)

($ in millions)

	Three months ended																				Twelve months ended

		Dec. 31,			Sept. 30,		June 30,		March 31,			Dec. 31,			Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,
		2012			2012		2012		2012			2011			2011		2011		2011		2012		2011

NET INVESTMENT INCOME
Fixed income securities	$	527		$	532	$	534	$	531		$	546		$	572	$	596	$	607	$	2,124	$	2,321
Equity securities		4			1		2		2			2			3		2		1		9		8
Mortgage loans		92			87		87		87			88			88		86		89		353		351
Limited partnership interests (1) (2)		42			11		39		67			15			18		11		5		159		49
Short-term		-			1		-		-			-			1		-		1		1		2
Other		29			29		29		27			29			26		24		9		114		88
Subtotal		694			661		691		714			680			708		719		712		2,760		2,819
Less: Investment expense		(29)			(29)		(28)		(27)			(24)			(26)		(25)		(28)		(113)		(103)
Net investment income	$	665		$	632	$	663	$	687		$	656		$	682	$	694	$	684	$	2,647	$	2,716
Net investment income, after-tax	$	440		$	420	$	437	$	455		$	431		$	448	$	455	$	449	$	1,752	$	1,783

PRE-TAX YIELDS (3)
Fixed income securities		5.0	%		4.9	%	4.9	%	4.8	%		4.9	%		5.0	%	5.0	%	5.0	%	4.9	%	5.0	%
Equity securities		6.2			4.5		5.2		3.9			4.6			8.0		2.9		3.3		4.8		4.6
Mortgage loans		5.9			5.5		5.3		5.2			5.3			5.3		5.2		5.4		5.5		5.3
Limited partnership interests		8.9			2.4		8.8		16.0			8.6			10.2		6.3		2.7		8.9		7.0
Total portfolio		5.2			4.9		5.0		5.2			4.9			5.0		4.9		4.8		5.1		4.9

REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE
Fixed income securities	$	54		$	(59)	$	(5)	$	(49)		$	56		$	433	$	46	$	15	$	(59)	$	550
Equity securities		1			(1)		-		-			-			-		17		(2)		-		15
Mortgage loans		3			(3)		9		(1)			10			(28)		(3)		(4)		8		(25)
Limited partnership interests (2)		(1)			-		2		(1)			(1)			11		30		22		-		62
Derivatives and other		(1)			7		2		30			3			(197)		(28)		8		38		(214)
Total	$	56		$	(56)	$	8	$	(21)		$	68		$	219	$	62	$	39	$	(13)	$	388

REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(13)		$	(12)	$	(6)	$	(20)		$	(68)		$	(85)	$	(43)	$	(50)	$	(51)	$	(246)
Change in intent write-downs		-			(1)		-		(16)			(1)			(3)		(5)		(42)		(17)		(51)
Net other-than-temporary impairment losses recognized in earnings		(13)			(13)		(6)		(36)			(69)			(88)		(48)		(92)		(68)		(297)
Sales		69			(51)		10		(8)			130			485		112		111		20		838
Valuation of derivative instruments		(10)			(3)		(11)		8			3			(198)		(38)		(4)		(16)		(237)
Settlements of derivative instruments		10			11		15		15			3			9		4		6		51		22
EMA limited partnership income (2)		-			-		-		-			1			11		32		18		-		62
Total	$	56		$	(56)	$	8	$	(21)		$	68		$	219	$	62	$	39	$	(13)	$	388

AVERAGE INVESTMENT BALANCES (in billions) (4)	$	53.7		$	54.5	$	55.0	$	55.3		$	56.2		$	57.7	$	58.8	$	60.2	$	54.6	$	58.2

(1) As of December 31, 2012, Allstate Financial has commitments to invest in additional limited partnership interests totaling $947 million.

(2) Income from EMA limited partnerships is reported in net investment income in 2012 and realized capital gains and losses in 2011.

Definitions of Non-GAAP Measures

We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Operating income (loss) is net income (loss), excluding:

- realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in operating income (loss),

- valuation changes on embedded derivatives that are not hedged, after-tax,

- amortization of deferred acquisition costs (“DAC”) and deferred sales inducements (“DSI”), to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives that are not hedged, after-tax,

- business combination expenses and the amortization of purchased intangible assets, after-tax,

- gain (loss) on disposition of operations, after-tax, and

- adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years.

Net income (loss) is the GAAP measure that is most directly comparable to operating income (loss). We use operating income (loss) as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, valuation changes on embedded derivatives that are not hedged, business combination expenses and the amortization of purchased intangible assets, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items. Realized capital gains and losses, valuation changes on embedded derivatives that are not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Consistent with our intent to protect results or earn additional income, operating income (loss) includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes. These instruments are used for economic hedges and to replicate fixed income securities, and by including them in operating income (loss), we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments. Business combination expenses are excluded because they are non-recurring in nature and the amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, operating income (loss) excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine operating income (loss) is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Operating income (loss) is used by management along with the other components of net income (loss) to assess our performance. We use adjusted measures of operating income (loss) and operating income (loss) per diluted share in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss), operating income (loss) and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income (loss) results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses operating income (loss) as the denominator. Operating income (loss) should not be considered as a substitute for net income (loss) and does not reflect the overall profitability of our business. A reconciliation of operating income (loss) to net income (loss) is provided in the schedule, “Contribution to Income”.

Underwriting income (loss) is calculated as premiums earned, less claims and claims expense (“losses”), amortization of DAC, operating costs and expenses and restructuring and related charges as determined using GAAP. Management uses this measure in its evaluation of the results of operations to analyze the profitability of our Property-Liability insurance operations separately from investment results. It is also an integral component of incentive compensation. It is useful for investors to evaluate the components of income separately and in the aggregate when reviewing performance. Net income (loss) is the most directly comparable GAAP measure. Underwriting income (loss) should not be considered as a substitute for net income (loss) and does not reflect the overall profitability of our business. A reconciliation of Property-Liability underwriting income (loss) to net income (loss) is provided in the schedule, “Property-Liability Results”.

Combined ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between two GAAP operating ratios: the combined ratio and the effect of catastrophes on the combined ratio. The most directly comparable GAAP measure is the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the combined ratio. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The combined ratio excluding the effect of catastrophes should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of combined ratio excluding the effect of catastrophes to combined ratio is provided in the schedule, “Property-Liability Results”.

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses and the amortization of purchased intangible assets (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year reserve reestimates on the combined ratio, the effect of business combination expenses and the amortization of purchased intangible assets on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates, business combination expenses and the amortization of purchased intangible assets. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. Business combination expenses and the amortization of purchased intangible assets primarily relate to the acquisition purchase price and are not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedules, “Property-Liability Results”, “Standard Auto Profitability Measures”, “Homeowners Profitability Measures”, “Allstate Brand Profitability Measures”, “Encompass Brand Profitability Measures” and “Esurance Brand Profitability Measures.

Operating income return on shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month operating income by the average of shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on shareholders’ equity is the most directly comparable GAAP measure. We use operating income as the numerator for the same reasons we use operating income, as discussed above. We use average shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of shareholders’ equity primarily attributable to the Company’s earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income and return on shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with net income return on shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine operating income return on shareholders’ equity from return on shareholders’ equity is the transparency and understanding of their significance to return on shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. Therefore, we believe it is useful for investors to have operating income return on shareholders’ equity and return on shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income return on shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Operating income return on shareholders’ equity should not be considered as a substitute for return on shareholders’ equity and does not reflect the overall profitability of our business. A reconciliation of return on shareholders’ equity and operating income return on shareholders’ equity can be found in the schedule, “Return on Shareholders’ Equity”.

Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAP measure. It is calculated by dividing shareholders’ equity after excluding the impact of unrealized net capital gains and losses on fixed income securities and related DAC, DSI and life insurance reserves by total shares outstanding plus dilutive potential shares outstanding. We use the trend in book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. We believe the non-GAAP ratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique. Book value per share is the most directly comparable GAAP measure. Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered as a substitute for book value per share, and does not reflect the recorded net worth of our business. A reconciliation of book value per share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per share can be found in the schedule, “Book Value per Share”.

The Allstate Corporation (ALL) 8-KAllstate Reports Strong 2012 Earnings and Increases Cash Returns to Shareholders