Exhibit 12
THE ALLSTATE CORPORATION
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
($ in millions) For the Year ended December 31,
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1998 1997 1996 1995 1994
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1. Income from continuing operations
before income taxes, equity in net income
of
unconsolidated subsidiary, and dividends on
preferred securities of subsidiary trusts $4,745 $4,434 $2,669 $2,421 $120
2. Equity in income of 100% owned subsidiary - - - 49 107
3. Dividends from less than 50% owned affiliate 1 2 2 2 -
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4. Income from continuing operations before
income taxes $4,746 $4,436 $2,671 $2,472 $227
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Fixed Charges:
5. Interest on indebtedness $118 $100 $95 $81 $60
6. Interest factor of annual rental expense 90 80 71 90 95
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7. Total fixed charges (5+6) $208 $180 $166 $171 $155
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8. Dividends on redeemable preferred securities 59
59 6 - -
9. Total fixed charges and dividends on
redeemable preferred securities (7+8) $267 $239 $172 $171 $155
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10. Income from continuing operations before
income taxes and fixed charges (4+7) $4,954 $4,616 $2,837 $2,643 $382
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11. Ratio of earnings to fixed charges (A) 18.6 X 19.3 X 16.5 X 15.5 X 2.5 X
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12. Interest credited to contractholder funds $1,247 $1,209 $1,196 $1,191 $1,079
13. Total fixed charges including dividends
on redeemable preferred securities and interest
credited to contractholder funds (9+12) $1,514 $1,448 $1,368 $1,362 $1,234
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14. Income from continuing operations
before income taxes and fixed charges
including interest credited to contractholder
funds (4+7+12) $6,201 $5,825 $4,033 $3,834 $1,461
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15. Ratio of earnings to fixed charges,
including interest credited to contractholder
funds 4.1 X 4.0 X 2.9 X 2.8 X 1.2 X
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(A) The Company has authority to issue up to 25,000,000 shares of preferred stock, par value $1.00 per share; however,
there are currently no shares outstanding and the Company does not have a preferred stock dividend obligation. Therefore,
the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends is equal to the Ratio of Earnings to Fixed Charges and
is not disclosed separately.
E-7