8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): August 1, 2017

THE ALLSTATE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-11840	36-3871531
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2775 Sanders Road, Northbrook, Illinois	60062
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code  (847) 402-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ____

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____

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Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition.

The Registrant’s press release dated August 1, 2017, announcing its financial results for the second quarter of 2017, and the Registrant’s second quarter 2017 investor supplement are furnished as Exhibits 99.1 and 99.2, respectively, to this report.  The information contained in the press release and the investor supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.

Section 9 – Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d)  Exhibits

99.1 Registrant’s press release dated August 1, 2017

99.2 Second quarter 2017 Investor Supplement of The Allstate Corporation

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	THE ALLSTATE CORPORATION
	(Registrant)
	By:	/s/ Eric K. Ferren
	Name: Eric K. Ferren
	Title: Senior Vice President, Controller and Chief Accounting Officer
Date: August 1, 2017

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contacts:

Greg Burns                John Griek

Media Relations          Investor Relations

(847) 402-5600                (847) 402-2800

Allstate Delivers Strong Second Quarter Operating Performance

Board Approves $2.0 Billion Share Repurchase Program

NORTHBROOK, Ill., August 1, 2017 – The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2017.

The Allstate Corporation Consolidated Highlights
	Three months ended June 30,					Six months ended June 30,
($ in millions, except per share data and ratios)	2017		2016		% / pts Change	2017			2016			% / pts Change
Consolidated revenues	$	9,587	$	9,164	4.6	$	19,021		$	18,035		5.5
Net income applicable to common shareholders	550		242		127.3	1,216			459			164.9
per diluted common share	1.49		0.64		132.8	3.29			1.21			171.9
Operating income*	510		235		117.0	1,118			557			100.7
per diluted common share*	1.38		0.62		122.6	3.02			1.46			106.8
Return on common shareholders’ equity
Net income applicable to common shareholders						13.1		%	8.0		%	5.1 pts
Operating income*						13.5		%	10.1		%	3.4 pts
Book value per common share						53.83			50.05			7.6
Property-Liability combined ratio
Recorded	97.2		100.8		(3.6) pts	95.4			99.6			(4.2) pts
Underlying combined ratio* (excludes catastrophes, prior year reserve reestimates and amortization of purchased intangibles)	85.5		88.6		(3.1) pts	85.1			87.9			(2.8) pts
Catastrophe losses	993		961		3.3	1,774			1,788			(0.8	)

* Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the “Definitions of Non-GAAP Measures” section of this document.

“Allstate delivered strong financial performance in the second quarter as a result of excellent progress on our five 2017 Operating Priorities,” said Tom Wilson, chairman and chief executive officer of The Allstate Corporation. “Net income applicable to common shareholders was $550 million, $1.49 per share, in the second quarter of 2017 compared to $242 million in the same period last year, reflecting improved auto insurance margins and strong investment results. Operating income* was $510 million, $1.38 per share, for the quarter and the underlying combined ratio* of 85.5 continued to be better than the annual outlook range of 87 to 89⁽¹⁾. The recorded combined ratio was 97.2 and underwriting results were good for auto, homeowners and other personal lines despite $993 million of catastrophe losses. Allstate Financial generated operating income of $153 million in the quarter due to higher investment income in the annuities business. Total return on the investment portfolio of 1.8% in the quarter reflects favorable fixed income and equity market conditions and increased income from the performance-based portfolio.

__________

⁽¹⁾ A reconciliation of this non-GAAP measure to the combined ratio, a GAAP measure, is not possible on a forward-looking basis because it is not possible to provide a reliable forecast of catastrophes, and prior year reserve reestimates are expected to be zero because reserves are determined based on our best estimate of ultimate loss reserves as of the reporting date.

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“We also advanced our goal to better serve customers and the customer base grew to 75 million policies in force. The strategy to leverage consumer insurance platforms to build a broader consumer focused business also progressed. Operating income return on common shareholders’ equity* was 13.5% for the twelve months ended June 30, 2017, due to strong earnings. Reflecting these positive results, the board approved a new $2 billion share repurchase program. Allstate’s long-term objective is to create prosperity for customers, shareholders, employees, financial specialists and agency owners by delivering excellent operating results while pursuing a broader set of goals. See ‘How Corporations Can Be A Force For Good,’ " concluded Wilson.

Operating Results: Second Quarter 2017

• Total revenue of $9.6 billion in the second quarter of 2017 increased by 4.6% compared to the prior year quarter.

◦ Property-liability insurance premiums increased 2.6%

◦ Allstate Financial premiums and contract charges rose 4.8%

◦ Net investment income increased 17.7%

◦ Realized capital gains were $81 million compared to $24 million in the prior year quarter

• Net income applicable to common shareholders was $550 million, or $1.49 per diluted share, in the second quarter of 2017, compared to $242 million, or $0.64 per diluted share, in the second quarter of 2016. Operating income* was $510 million in the second quarter of 2017, compared to $235 million in the second quarter of 2016.

• Property-Liability underwriting income of $227 million was $293 million above the prior year quarter, due to increased auto insurance underwriting income reflecting higher average premiums, lower claims frequency and favorable prior year reserve reestimates. This was partially offset by an increased expense ratio which included $52 million of restructuring expenses. The majority of these expenses are related to Allstate brand claims process changes and office closures due to the expansion of virtual auto claim estimating capabilities.

◦ The underlying combined ratio* of 85.5 for the second quarter and 85.1 for the first six months of 2017 were significantly lower than the prior year periods, reflecting improvement in the auto underlying combined ratio across all three underwritten brands and strong homeowners underlying margins. Assuming current loss trends continue, we expect to be at or below the lower end of the annual outlook range of 87-89 for the full year.

Property-Liability Results
	Three months ended June 30,				Six months ended June 30,
(% to earned premiums)	2017	2016	pts Change		2017	2016	pts Change
Recorded Combined Ratio	97.2	100.8	(3.6	)	95.4	99.6	(4.2	)
Allstate Brand Auto	95.8	101.2	(5.4	)	93.2	100.1	(6.9	)
Allstate Brand Homeowners	97.2	97.0	0.2		95.4	95.2	0.2
Allstate Brand Other Personal Lines	90.8	91.2	(0.4	)	91.9	91.9	—
Esurance	106.1	108.9	(2.8	)	104.2	107.6	(3.4	)
Encompass	104.4	104.9	(0.5	)	108.1	105.4	2.7
Underlying Combined Ratio*	85.5	88.6	(3.1	)	85.1	87.9	(2.8	)
Allstate Brand Auto	92.8	97.8	(5.0	)	91.8	96.9	(5.1	)
Allstate Brand Homeowners	59.8	58.6	1.2		60.5	59.0	1.5
Allstate Brand Other Personal Lines	77.1	77.3	(0.2	)	77.9	77.7	0.2
Esurance	100.5	104.8	(4.3	)	100.4	104.9	(4.5	)
Encompass	87.6	92.8	(5.2	)	87.1	90.5	(3.4	)

◦ Allstate brand auto net written premium grew 3.3% in the second quarter of 2017, reflecting a 5.4% increase in average premium compared to the prior year quarter, which was partially offset by a 2.6% decline in policies in force. Actions taken to improve auto insurance margins continue to impact average premium and policy in force trends. As margins have improved, we expanded the number of states in which we are implementing growth plans, and in the second quarter the rate of decline in policies slowed compared to the first quarter. New issued applications grew 9.8% in the second quarter over the prior year quarter, and the renewal ratio of 87.4 was consistent with the first quarter of 2017. The recorded combined ratio of 95.8 in the second quarter of 2017 was 5.4 points better than the prior year quarter and

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was favorably impacted by increased premiums earned, lower claim frequency, and favorable prior year reserve reestimates primarily related to injury coverages. The underlying combined ratio* in the second quarter of 2017 was 5.0 points better than the second quarter of 2016.

◦ Allstate brand homeowners net written premium increased 0.9% in the second quarter of 2017 compared to the prior year quarter, reflecting a 1.8% increase in average premium that was partially offset by a 1.3% decline in policies in force. Homeowners policy growth has been adversely impacted by actions taken to improve auto margins, but new issued applications grew by 1.0% in the second quarter over the prior year quarter, and the renewal ratio of 87.0 was comparable to the first quarter of 2017. The recorded combined ratio of 97.2 in the second quarter of 2017 increased by 0.2 points compared to the prior year quarter and the underlying combined ratio* of 59.8 continued to reflect strong underlying profitability.

◦ Allstate brand other personal lines net written premium of $441 million increased 3.0% in the second quarter of 2017 compared to the second quarter 2016. The recorded combined ratio of 90.8 in the second quarter of 2017 improved by 0.4 points compared to the prior year quarter, driven by an improved loss ratio, partially offset by a higher expense ratio. The underlying combined ratio* was 77.1 in the second quarter of 2017, an improvement of 0.2 points compared to the prior year quarter.

◦ Esurance net written premium growth of 4.1% compared to the prior year quarter reflects increased average premium in auto and homeowners. Policy growth was 0.3% in the second quarter of 2017 compared to the second quarter of 2016, as an increase in homeowners more than offset a slight decline in auto policies. The recorded combined ratio of 106.1 was 2.8 points better in the second quarter of 2017 compared to the second quarter of 2016, as a lower expense ratio was partially offset by a higher loss ratio. The underlying combined ratio* of 100.5 improved by 4.3 points compared to the prior year quarter.

◦ Encompass net written premium declined by 9.5% and policies in force were 14.9% lower in the second quarter of 2017 compared to the prior year quarter, as we exit unprofitable markets and raise prices. The recorded combined ratio of 104.4 in the second quarter of 2017 was 0.5 points below the second quarter of 2016. The underlying combined ratio* of 87.6 improved by 5.2 points compared to the prior year quarter, due to improvement in the underlying loss ratio partially offset by a higher expense ratio.

◦ SquareTrade net written premium was $85 million in the second quarter of 2017 and generated an underwriting loss of $22 million. Policies in force were 31.3 million, an increase of 1.4 million policies in this quarter, due to continued growth in the U.S retail channel. Operating income* of $1 million excludes the $23 million ($15 million, after-tax) impact of the amortization of purchased intangible assets related to the acquisition. During the second quarter, Allstate Insurance Company executed a 100% quota share reinsurance agreement with SquareTrade’s largest third-party insurer which should result in higher underwriting and investment income.

• Allstate Financial net income was $146 million and operating income was $153 million in the second quarter of 2017. Operating income was $33 million higher than the prior year quarter, largely due to higher investment returns in Allstate Annuities.

Allstate Financial Results
	Three months ended June 30,						Six months ended June 30,
($ in millions)	2017		2016		% Change		2017		2016		% Change
Net Income	$	146	$	116	25.9		$	254	$	184	38.0
Allstate Life	60		61		(1.6	)	117		118		(0.8	)
Allstate Benefits	25		29		(13.8	)	47		49		(4.1	)
Allstate Annuities	61		26		134.6		90		17		NM
Operating Income	$	153	$	120	27.5		$	263	$	224	17.4
Allstate Life	63		64		(1.6	)	122		130		(6.2	)
Allstate Benefits	25		29		(13.8	)	47		52		(9.6	)
Allstate Annuities	65		27		140.7		94		42		123.8

NM = not meaningful

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◦ Allstate Life net income was $60 million and operating income was $63 million in the second quarter of 2017. Operating income was $1 million lower than the prior year quarter primarily due to higher contract benefits and expenses, partially offset by higher premiums and net investment income.

◦ Allstate Benefits net income and operating income were both $25 million in the second quarter of 2017. Operating income was $4 million lower than the prior year quarter primarily due to higher contract benefits and higher expenses related to growth, partially offset by higher premiums.

◦ Allstate Annuities net income was $61 million and operating income was $65 million in the second quarter of 2017. Operating income was $38 million higher than the prior year quarter, primarily due to higher performance-based net investment income including private equity value appreciation.

• Allstate Investments generated net investment income of $897 million, which was 17.7% above the prior year quarter, reflecting higher performance-based results and stable income from the market-based portfolios.

Allstate Investment Results
	Three months ended June 30,								Six months ended June 30,
($ in millions, except ratios)	2017			2016			% / pts Change		2017			2016			% / pts Change
Net investment income	$	897		$	762		17.7		$	1,645		$	1,493		10.2
Realized capital gains and losses	81			24			237.5		215			(125		)	272.0
Change in unrealized net capital gains, pre-tax	448			709			(36.8	)	779			1,672			(53.4	)
Total return on investment portfolio	1.8		%	1.9		%	(0.1	)	3.4		%	3.9		%	(0.5	)

◦ Net investment income increased by $135 million in the second quarter of 2017 compared to the prior year quarter, due to a $130 million increase in performance-based income, including private equity ($97 million) and real estate ($33 million) investments.

◦ Net realized capital gains were $81 million in the second quarter of 2017, compared to $24 million in the prior year quarter, and primarily comprised net gains on sales of $139 million, partially offset by write-downs of $50 million.

◦ Change in unrealized net capital gains of $448 million in the second quarter of 2017 were primarily due to a decrease in market yields resulting from tighter credit spreads and lower long-term risk-free interest rates and favorable equity market performance.

◦ Total return on the investment portfolio was 1.8% for the second quarter of 2017, which included a strong contribution from net investment income and increased fixed income and equity valuations. The trailing twelve months total return was 4.0%.

Proactive Capital Management

“Allstate continued to provide strong returns to our shareholders during the first half of 2017 through a combination of $257 million in common stock dividends and repurchasing $646 million of outstanding shares. A new $2 billion share repurchase program, approved today, will begin following the completion of our current program and is expected to conclude by February 2019,” said Steve Shebik, chief financial officer. “In addition, with the objective of providing more transparency into the performance of our business, we are planning to adopt a new segment reporting structure effective in the fourth quarter 2017. The new reporting structure will change from our current four segments to seven segments that will include a separate segment for service businesses, broken out from traditional property and casualty, and Allstate Financial will transition to individual segments for Life, Benefits and Annuities.”

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Visit www.allstateinvestors.com to view additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be held at 9 a.m. ET on Wednesday, August 2.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting people from life’s uncertainties with 75 million proprietary policies. Allstate offers a broad array of protection products through multiple brands and diverse distribution channels, including auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brands. The company provides additional protection products and services through Allstate Benefits, Allstate Roadside Services, Allstate Dealer Services, Arity and SquareTrade. Allstate is widely known from the slogan “You’re In Good Hands With Allstate^®.” Allstate agencies are in virtually every local community in America. The Allstate Foundation, Allstate, its employees and agency owners have a proud history of caring for local communities.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

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THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Revenues
Property-liability insurance premiums	$	8,018		$	7,814		$	15,977		$	15,537
Life and annuity premiums and contract charges	591			564			1,184			1,130
Net investment income	897			762			1,645			1,493
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(47		)	(77		)	(109		)	(168		)
OTTI losses reclassified to (from) other comprehensive income	(3		)	(2		)	—			8
Net OTTI losses recognized in earnings	(50		)	(79		)	(109		)	(160		)
Sales and other realized capital gains and losses	131			103			324			35
Total realized capital gains and losses	81			24			215			(125		)
	9,587			9,164			19,021			18,035
Costs and expenses
Property-liability insurance claims and claims expense	5,689			5,901			11,105			11,585
Life and annuity contract benefits	486			454			960			909
Interest credited to contractholder funds	175			185			348			375
Amortization of deferred policy acquisition costs	1,176			1,126			2,345			2,255
Operating costs and expenses	1,086			1,040			2,183			2,022
Restructuring and related charges	53			11			63			16
Interest expense	83			72			168			145
	8,748			8,789			17,172			17,307
Gain on disposition of operations	12			1			14			3
Income from operations before income tax expense	851			376			1,863			731
Income tax expense	272			105			589			214
Net income	579			271			1,274			517
Preferred stock dividends	29			29			58			58
Net income applicable to common shareholders	$	550		$	242		$	1,216		$	459
Earnings per common share:
Net income applicable to common shareholders per common share – Basic	$	1.51		$	0.65		$	3.34		$	1.22
Weighted average common shares – Basic	363.6			373.6			364.6			375.8
Net income applicable to common shareholders per common share – Diluted	$	1.49		$	0.64		$	3.29		$	1.21
Weighted average common shares – Diluted	369.0			378.1			370.1			380.5
Cash dividends declared per common share	$	0.37		$	0.33		$	0.74		$	0.66

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THE ALLSTATE CORPORATION
BUSINESS RESULTS
($ in millions, except ratios)	Three months ended						Six months ended
	June 30,						June 30,
	2017			2016			2017			2016
Property-Liability
Premiums written	$	8,289		$	8,051		$	16,012		$	15,566
Premiums earned	$	8,018		$	7,814		$	15,977		$	15,537
Claims and claims expense	(5,689		)	(5,901		)	(11,105		)	(11,585		)
Amortization of deferred policy acquisition costs	(1,103		)	(1,057		)	(2,193		)	(2,113		)
Operating costs and expenses	(947		)	(912		)	(1,883		)	(1,765		)
Restructuring and related charges	(52		)	(10		)	(62		)	(15		)
Underwriting income (loss)	227			(66		)	734			59
Net investment income	391			316			702			618
Income tax expense on operations	(196		)	(70		)	(451		)	(211		)
Realized capital gains and losses, after-tax	56			18			145			(46		)
Gain on disposition of operations, after-tax	6			—			6			—
Net income applicable to common shareholders	$	484		$	198		$	1,136		$	420
Catastrophe losses	$	993		$	961		$	1,774		$	1,788
Amortization of purchased intangible assets	$	24		$	9		$	49		$	18
Operating ratios:
Claims and claims expense ratio	71.0			75.5			69.5			74.6
Expense ratio	26.2			25.3			25.9			25.0
Combined ratio	97.2			100.8			95.4			99.6
Effect of catastrophe losses on combined ratio	12.4			12.3			11.1			11.5
Effect of prior year reserve reestimates on combined ratio	(1.1		)	—			(1.2		)	0.1
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio	(0.1		)	0.2			(0.1		)	—
Effect of amortization of purchased intangible assets on combined ratio	0.3			0.1			0.3			0.1
Effect of Discontinued Lines and Coverages on combined ratio	0.1			—			—			—
Allstate Financial
Premiums and contract charges	$	591		$	564		$	1,184		$	1,130
Net investment income	496			435			922			854
Contract benefits	(486		)	(454		)	(960		)	(909		)
Interest credited to contractholder funds	(173		)	(179		)	(346		)	(363		)
Amortization of deferred policy acquisition costs	(69		)	(68		)	(144		)	(139		)
Operating costs and expenses	(130		)	(121		)	(265		)	(244		)
Restructuring and related charges	(1		)	(1		)	(1		)	(1		)
Income tax expense on operations	(75		)	(56		)	(127		)	(104		)
Operating income	153			120			263			224
Realized capital gains and losses, after-tax	(3		)	—			(4		)	(32		)
Valuation changes on embedded derivatives that are not hedged, after-tax	(1		)	(4		)	(1		)	(8		)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(3		)	(1		)	(6		)	(2		)
Gain on disposition of operations, after-tax	—			1			2			2
Net income applicable to common shareholders	$	146		$	116		$	254		$	184
Corporate and Other
Net investment income	$	10		$	11		$	21		$	21
Operating costs and expenses	(92		)	(79		)	(185		)	(158		)
Income tax benefit on operations	31			26			61			51
Preferred stock dividends	(29		)	(29		)	(58		)	(58		)
Operating loss	(80		)	(71		)	(161		)	(144		)
Realized capital gains and losses, after-tax	—			(1		)	—			(1		)
Business combination expenses, after-tax	—			—			(13		)	—
Net loss applicable to common shareholders	$	(80	)	$	(72	)	$	(174	)	$	(145	)
Consolidated net incomeapplicable to common shareholders	$	550		$	242		$	1,216		$	459

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THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
($ in millions, except par value data)	June 30, 2017			December 31, 2016
Assets	(unaudited)
Investments:
Fixed income securities, at fair value (amortized cost $56,901 and $56,576)	$	58,656		$	57,839
Equity securities, at fair value (cost $5,321 and $5,157)	6,117			5,666
Mortgage loans	4,336			4,486
Limited partnership interests	6,206			5,814
Short-term, at fair value (amortized cost $2,175 and $4,288)	2,175			4,288
Other	3,815			3,706
Total investments	81,305			81,799
Cash	482			436
Premium installment receivables, net	5,693			5,597
Deferred policy acquisition costs	4,037			3,954
Reinsurance recoverables, net	8,722			8,745
Accrued investment income	573			567
Property and equipment, net	1,072			1,065
Goodwill	2,309			1,219
Other assets	3,256			1,835
Separate Accounts	3,416			3,393
Total assets	$	110,865		$	108,610
Liabilities
Reserve for property-liability insurance claims and claims expense	$	25,884		$	25,250
Reserve for life-contingent contract benefits	12,234			12,239
Contractholder funds	19,832			20,260
Unearned premiums	13,024			12,583
Claim payments outstanding	939			879
Deferred income taxes	1,104			487
Other liabilities and accrued expenses	6,583			6,599
Long-term debt	6,348			6,347
Separate Accounts	3,416			3,393
Total liabilities	89,364			88,037
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 72.2 thousand shares issued and outstanding, $1,805 aggregate liquidation preference	1,746			1,746
Common stock, $.01 par value, 900 million issued, 361 million and 366 million shares outstanding	9			9
Additional capital paid-in	3,269			3,303
Retained income	41,622			40,678
Deferred ESOP expense	(6		)	(6		)
Treasury stock, at cost (539 million and 534 million shares)	(25,241		)	(24,741		)
Accumulated other comprehensive income:
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	65			57
Other unrealized net capital gains and losses	1,590			1,091
Unrealized adjustment to DAC, DSI and insurance reserves	(129		)	(95		)
Total unrealized net capital gains and losses	1,526			1,053
Unrealized foreign currency translation adjustments	(42		)	(50		)
Unrecognized pension and other postretirement benefit cost	(1,382		)	(1,419		)
Total accumulated other comprehensive income (loss)	102			(416		)
Total shareholders’ equity	21,501			20,573
Total liabilities and shareholders’ equity	$	110,865		$	108,610

8

THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)	Six months ended June 30,
	2017			2016
Cash flows from operating activities	(unaudited)
Net income	$	1,274		$	517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	238			188
Realized capital gains and losses	(215		)	125
Gain on disposition of operations	(14		)	(3		)
Interest credited to contractholder funds	348			375
Changes in:
Policy benefits and other insurance reserves	228			577
Unearned premiums	34			62
Deferred policy acquisition costs	(65		)	(72		)
Premium installment receivables, net	(51		)	(27		)
Reinsurance recoverables, net	6			(120		)
Income taxes	(42		)	(176		)
Other operating assets and liabilities	(393		)	(88		)
Net cash provided by operating activities	1,348			1,358
Cash flows from investing activities
Proceeds from sales
Fixed income securities	14,521			12,589
Equity securities	3,430			2,487
Limited partnership interests	481			363
Other investments	118			144
Investment collections
Fixed income securities	2,063			2,138
Mortgage loans	305			150
Other investments	337			168
Investment purchases
Fixed income securities	(17,214		)	(12,947		)
Equity securities	(3,473		)	(2,672		)
Limited partnership interests	(578		)	(703		)
Mortgage loans	(148		)	(264		)
Other investments	(532		)	(449		)
Change in short-term investments, net	2,142			(669		)
Change in other investments, net	107			(39		)
Purchases of property and equipment, net	(146		)	(120		)
Acquisition of operations	(1,356		)	—
Net cash provided by investing activities	57			176
Cash flows from financing activities
Repayments of long-term debt	—			(16		)
Contractholder fund deposits	515			522
Contractholder fund withdrawals	(957		)	(1,013		)
Dividends paid on common stock	(257		)	(240		)
Dividends paid on preferred stock	(58		)	(58		)
Treasury stock purchases	(657		)	(904		)
Shares reissued under equity incentive plans, net	108			72
Excess tax benefits on share-based payment arrangements	—			20
Other	(53		)	34
Net cash used in financing activities	(1,359		)	(1,583		)
Net increase (decrease) in cash	46			(49		)
Cash at beginning of period	436			495
Cash at end of period	$	482		$	446

9

The following table presents the investment portfolio by strategy as of June 30, 2017.

($ in millions)	Total		Market-Based		Performance-Based
Fixed income securities	$	58,656	$	58,588	$	68
Equity securities	6,117		6,021		96
Mortgage loans	4,336		4,336		—
Limited partnership interests	6,206		553		5,653
Short-term investments	2,175		2,175		—
Other	3,815		3,270		545
Total	$	81,305	$	74,943	$	6,362
Property-Liability	$	43,083	$	39,702	$	3,381
Allstate Financial	36,456		33,475		2,981
Corporate & Other	1,766		1,766		—
Total	$	81,305	$	74,943	$	6,362

The following table presents investment income by investment strategy for the three months and six months ended June 30.

	Three months ended June 30,						Six months ended June 30,
($ in millions)	2017			2016			2017			2016
Market-Based:
Property-Liability	$	288		$	269		$	560		$	529
Allstate Financial	374			380			748			750
Corporate & Other	12			13			25			25
Total Market-Based	674			662			1,333			1,304
Performance-Based:
Property-Liability	129			69			196			135
Allstate Financial	142			72			215			139
Corporate & Other	—			—			—			—
Total Performance-Based	271			141			411			274
Investment income, before expense	945			803			1,744			1,578
Investment expense	(48		)	(41		)	(99		)	(85		)
Net investment income	$	897		$	762		$	1,645		$	1,493

10

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 is net incomeapplicable to common shareholders, 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,

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

• amortization of deferred policy 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 applicable to common shareholders is the GAAP measure that is most directly comparable to operating income.

We use operating income 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 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, 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 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 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 is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of operating income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, operating income 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 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 as the denominator. Operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business.

11

The following tables reconcile net income applicable to common shareholders and operating income. Taxes on adjustments to reconcile net income applicable to common shareholders and operating income generally use a 35% effective tax rate and are reported net with the reconciling adjustment. If the effective tax rate is other than 35%, this is specified in the disclosure.

($ in millions, except per share data)	For the three months ended June 30,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2017			2016			2017			2016			2017			2016			2017			2016
Net income applicable to common shareholders	$	484		$	198		$	146		$	116		$	550		$	242		$	1.49		$	0.64
Realized capital gains and losses, after-tax	(56		)	(18		)	3			—			(53		)	(17		)	(0.14		)	(0.04		)
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			1			4			1			4			—			0.01
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	—			—			3			1			3			1			0.01			—
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	(1		)	—			—			—			(1		)	—			—			—
Business combination expenses and the amortization of purchased intangible assets, after-tax	16			6			—			—			16			6			0.04			0.01
Gain on disposition of operations, after-tax	(6		)	—			—			(1		)	(6		)	(1		)	(0.02		)	—
Operating income*	$	437		$	186		$	153		$	120		$	510		$	235		$	1.38		$	0.62
	For the six months ended June 30,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2017			2016			2017			2016			2017			2016			2017			2016
Net income applicable to common shareholders	$	1,136		$	420		$	254		$	184		$	1,216		$	459		$	3.29		$	1.21
Realized capital gains and losses, after-tax	(145		)	46			4			32			(141		)	79			(0.38		)	0.21
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			1			8			1			8			—			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	—			—			6			2			6			2			0.02			—
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	(1		)	(1		)	—			—			(1		)	(1		)	—			—
Business combination expenses and the amortization of purchased intangible assets, after-tax	32			12			—			—			45			12			0.11			0.03
Gain on disposition of operations, after-tax	(6		)	—			(2		)	(2		)	(8		)	(2		)	(0.02		)	(0.01		)
Operating income*	$	1,016		$	477		$	263		$	224		$	1,118		$	557		$	3.02		$	1.46

Operating income return on common 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 common 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 common 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 common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common 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 applicable to common shareholders and return on common 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 return on common 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 common shareholders’ equity from return on common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of operating income return on common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have operating income return on common shareholders’ equity and return on common 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 common 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 common shareholders’ equity should not be considered a substitute for return on common shareholders’ equity and does not reflect the overall profitability of our business.

12

The following tables reconcile return on common shareholders’ equity and operating income return on common shareholders’ equity.

($ in millions)	For the twelve months ended June 30,
	2017			2016
Return on commonshareholders’ equity
Numerator:
Net incomeapplicable to common shareholders	$	2,518		$	1,540
Denominator:
Beginning commonshareholders’ equity (1)	$	18,807		$	19,552
Ending commonshareholders’ equity (1)	19,755			18,807
Average commonshareholders’ equity	$	19,281		$	19,180
Return on common shareholders’ equity	13.1		%	8.0		%

($ in millions)	For the twelve months ended June 30,
	2017			2016
Operating income return on common shareholders’ equity
Numerator:
Operating income	$	2,399		$	1,792
Denominator:
Beginning commonshareholders’ equity	$	18,807		$	19,552
Unrealized net capital gains and losses	1,624			1,419
Adjusted beginning commonshareholders’ equity	17,183			18,133
Ending commonshareholders’ equity	19,755			18,807
Unrealized net capital gains and losses	1,526			1,624
Adjusted ending commonshareholders’ equity	18,229			17,183
Average adjusted commonshareholders’ equity	$	17,706		$	17,658
Operating income return on common shareholders’ equity*	13.5		%	10.1		%

_____________

⁽¹⁾ Excludes equity related to preferred stock of $1,746 million.

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and 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 non-catastrophe reserve reestimates on the combined ratio, and the effect of 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 and 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. Amortization of purchased intangible assets relates to the acquisition purchase price and is 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 a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

The following tables reconcilethe respective combined ratio to the underlying combined ratio.

Property-Liability	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Combined ratio	97.2		100.8		95.4		99.6
Effect of catastrophe losses	(12.4	)	(12.3	)	(11.1	)	(11.5	)
Effect of prior year non-catastrophe reserve reestimates	1.0		0.2		1.1		(0.1	)
Effect of amortization of purchased intangible assets	(0.3	)	(0.1	)	(0.3	)	(0.1	)
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization of purchased intangible assets (“underlying combined ratio”)*	85.5		88.6		85.1		87.9
Effect of prior year catastrophe reserve reestimates	(0.1	)	0.2		(0.1	)	—

Underwriting margin is calculated as 100% minus the combined ratio.

13

Allstate Brand - Total	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Combined ratio	96.0		100.1		93.9		98.9
Effect of catastrophe losses	(12.7	)	(12.9	)	(11.2	)	(12.1	)
Effect of prior year non-catastrophe reserve reestimates	1.1		0.3		1.3		—
Underlying combined ratio*	84.4		87.5		84.0		86.8
Effect of prior year catastrophe reserve reestimates	—		0.3		—		0.1

Allstate Brand - Auto Insurance	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Combined ratio	95.8		101.2		93.2		100.1
Effect of catastrophe losses	(4.2	)	(4.1	)	(2.8	)	(3.5	)
Effect of prior year non-catastrophe reserve reestimates	1.2		0.7		1.4		0.3
Underlying combined ratio*	92.8		97.8		91.8		96.9
Effect of prior year catastrophe reserve reestimates	—		(0.1	)	(0.1	)	—

Allstate Brand - Homeowners Insurance	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Combined ratio	97.2		97.0		95.4		95.2
Effect of catastrophe losses	(38.4	)	(38.3	)	(36.2	)	(36.2	)
Effect of prior year non-catastrophe reserve reestimates	1.0		(0.1	)	1.3		—
Underlying combined ratio*	59.8		58.6		60.5		59.0
Effect of prior year catastrophe reserve reestimates	—		1.0		—		0.3

Allstate Brand - Other Personal Lines	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Combined ratio	90.8		91.2		91.9		91.9
Effect of catastrophe losses	(13.9	)	(15.6	)	(14.2	)	(15.8	)
Effect of prior year non-catastrophe reserve reestimates	0.2		1.7		0.2		1.6
Underlying combined ratio*	77.1		77.3		77.9		77.7
Effect of prior year catastrophe reserve reestimates	(0.5	)	—		0.6		—

Encompass Brand - Total	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Combined ratio	104.4		104.9		108.1		105.4
Effect of catastrophe losses	(19.0	)	(11.2	)	(21.4	)	(12.3	)
Effect of prior year non-catastrophe reserve reestimates	2.2		(0.9	)	0.4		(2.6	)
Underlying combined ratio*	87.6		92.8		87.1		90.5
Effect of prior year catastrophe reserve reestimates	(0.7	)	(0.6	)	—		(0.2	)

Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. 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. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business.

14

The following table reconcilesthe Esurance brand combined ratio to the Esurance brand underlying loss ratio and underlying combined ratio.

Esurance Brand - Total	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Combined ratio	106.1		108.9		104.2		107.6
Effect of catastrophe losses	(5.6	)	(3.4	)	(3.7	)	(2.1	)
Effect of prior year non-catastrophe reserve reestimates	—		1.0		—		1.0
Effect of amortization of purchased intangible assets	—		(1.7	)	(0.1	)	(1.6	)
Underlying combined ratio*	100.5		104.8		100.4		104.9
Expense ratio, excluding the effect of amortization of purchased intangible assets	(25.4	)	(30.3	)	(26.3	)	(31.1	)
Underlying loss ratio*	75.1		74.5		74.1		73.8

Adjusted SquareTrade operating income is a non-GAAP measure, which is computed as net income (loss) applicable to common shareholders, excluding amortization of purchased intangible assets, after-tax, and realized capital gains and losses, after-tax, and adjusted for the after-tax income statement effects of acquisition-related purchase accounting fair value adjustments to unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers.  Net income (loss) applicable to shareholders is the GAAP measure that is most directly comparable to adjusted SquareTrade operating income. We use adjusted SquareTrade operating income as an important measure to evaluate SquareTrade’s results of operations. We believe that the measure provides investors with a valuable measure of SquareTrade’s ongoing performance because it reveals trends that may be obscured by the amortization of purchased intangible assets, the acquisition-related purchase accounting fair value adjustments, and the net effects of realized capital gains and losses. Amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We adjust for the effects of acquisition-related purchase accounting fair value adjustments because they relate to the acquisition and their effects are not indicative of the underlying business results and trends. Realized capital gains and losses 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 SquareTrade’s operations. Adjusted SquareTrade operating income highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of net income applicable to common shareholders to assess our performance. We believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted SquareTrade operating income and their components separately and in the aggregate when reviewing and evaluating SquareTrade’s performance.  Adjusted SquareTrade operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business.

The following table reconcilesthe SquareTrade net loss applicable to shareholders to the adjusted SquareTrade operating income.

SquareTrade	Three months ended June 30,					Six months ended June 30,
	2017			2016		2017			2016
Net loss applicable to common shareholders	$	(14	)	$	—	$	(37	)	$	—
Realized capital gains and losses, after-tax	—			—		—			—
Amortization of purchased intangible assets, after-tax	15			—		30			—
Operating income *	1			—		(7		)	—
Fair value adjustments, after-tax	3					7
Adjusted SquareTrade operating income *	$	4		$	—	$	—		$	—

# # # # #

15

EX-99.2

Exhibit 99.2 Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*). These measures are defined on the page "Definitions of Non-GAAP Measures" and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein. THE ALLSTATE CORPORATION Investor Supplement Second Quarter 2017 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 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.

PAGE Consolidated Statements of Operations 1 Contribution to Income 2 Revenues 3 Segment Results 4,5 Statements of Financial Position 6 Book Value Per Common Share 7 Return on Common Shareholders' Equity 8 Debt to Capital 9 Statements of Cash Flows 10 Analysis of Deferred Policy Acquisition Costs 11,12 Policies in Force and Other Statistics 13 Property-Liability Operations Property-Liability Results 14 Property-Liability Underwriting Results by Area of Business 15 Property-Liability Premiums Written by Brand 16 Impact of Net Rate Changes Approved on Premiums Written 17 Allstate Brand Profitability Measures 18 Allstate Brand Statistics 19 Allstate Brand Auto Claim Frequency Analysis 20,21 Esurance Brand Profitability Measures and Statistics 22 Encompass Brand Profitability Measures and Statistics 23 SquareTrade Profitabillity Measures 24 Auto Profitability Measures 25 Homeowners Profitability Measures 26 Other Personal Lines Profitability Measures 27 Auto, Homeowners and Other Personal Lines Underlying Combined Ratios by Brand 28 Commercial Lines Profitability Measures 29 Other Business Lines Profitability Measures 30 Allstate Brand Auto and Homeowners Underlying Loss and Expense 31 Homeowners Supplemental Information 32 Catastrophe Losses by Brand 33 Catastrophe Experience 34 Prior Year Reserve Reestimates 35 Asbestos and Environmental Reserves 36 Allstate Financial Operations Allstate Financial Segment Results 37 Return on Attributed Equity 38 Allstate Financial Premiums and Contract Charges and Other Statistics 39 Allstate Financial Change in Contractholder Funds 40 Allstate Financial Analysis of Net Income 41 Allstate Financial Weighted Average Investment Spreads 42 Allstate Financial Supplemental Product Information 43 Allstate Life, Allstate Benefits and Allstate Annuities Results and Product Information 44,45 Corporate and Other Segment Results 46 Investments Investments 47 Unrealized Net Capital Gains and Losses on Security Portfolio by Type 48 Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 49 Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 50 Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 51 Consolidated Investment Position and Results by Strategy 52 Property-Liability Consolidated Investment Position and Results by Strategy 53 Allstate Financial Consolidated Investment Position and Results by Strategy 54 Performance-Based Investments 55 Limited Partnership Interests 56 Definitions of Non-GAAP Measures 57 THE ALLSTATE CORPORATION Investor Supplement - Second Quarter 2017 Table of Contents

1 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Revenues Property-liability insurance premiums $ 8,018 $ 7,959 $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 15,977 $ 15,537 Life and annuity premiums and contract charges 591 593 574 571 564 566 1,184 1,130 Net investment income 897 748 801 748 762 731 1,645 1,493 Realized capital gains and losses: Total other-than-temporary impairment ("OTTI") losses (47) (62) (72) (73) (77) (91) (109) (168) OTTI losses reclassified to (from) other comprehensive income (3) 3 2 - (2) 10 - 8 Net OTTI losses recognized in earnings (50) (59) (70) (73) (79) (81) (109) (160) Sales and other realized capital gains and losses 131 193 72 106 103 (68) 324 35 Total realized capital gains and losses 81 134 2 33 24 (149) 215 (125) Total revenues 9,587 9,434 9,278 9,221 9,164 8,871 19,021 18,035 Costs and expenses Property-liability insurance claims and claims expense 5,689 5,416 5,083 5,553 5,901 5,684 11,105 11,585 Life and annuity contract benefits 486 474 464 484 454 455 960 909 Interest credited to contractholder funds 175 173 168 183 185 190 348 375 Amortization of deferred policy acquisition costs 1,176 1,169 1,157 1,138 1,126 1,129 2,345 2,255 Operating costs and expenses 1,086 1,097 1,063 1,021 1,040 982 2,183 2,022 Restructuring and related charges 53 10 9 5 11 5 63 16 Interest expense 83 85 77 73 72 73 168 145 Total costs and expenses 8,748 8,424 8,021 8,457 8,789 8,518 17,172 17,307 Gain on disposition of operations 12 2 1 1 1 2 14 3 Income from operations before income tax expense 851 1,012 1,258 765 376 355 1,863 731 Income tax expense 272 317 418 245 105 109 589 214 Net income $ 579 $ 695 $ 840 $ 520 $ 271 $ 246 $ 1,274 $ 517 Preferred stock dividends 29 29 29 29 29 29 58 58 Net income applicable to common shareholders $ 550 $ 666 $ 811 $ 491 $ 242 $ 217 $ 1,216 $ 459 Earnings per common share: (1) Net income applicable to common shareholders per common share - Basic $ 1.51 $ 1.82 $ 2.20 $ 1.32 $ 0.65 $ 0.57 $ 3.34 $ 1.22 Weighted average common shares - Basic 363.6 365.7 368.0 371.5 373.6 378.1 364.6 375.8 Net income applicable to common shareholders per common share - Diluted $ 1.49 $ 1.79 $ 2.18 $ 1.31 $ 0.64 $ 0.57 $ 3.29 $ 1.21 Weighted average common shares - Diluted 369.0 371.3 372.5 375.9 378.1 382.9 370.1 380.5 Cash dividends declared per common share $ 0.37 $ 0.37 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 0.74 $ 0.66 (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 CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Six months endedThree months ended

2 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Contribution to income Net income applicable to common shareholders $ 550 $ 666 $ 811 $ 491 $ 242 $ 217 $ 1,216 $ 459 Realized capital gains and losses, after-tax (53) (88) (1) (22) (17) 96 (141) 79 Valuation changes on embedded derivatives that are not hedged, after-tax 1 - (6) - 4 4 1 8 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax 3 3 1 1 1 1 6 2 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) - (2) - - (1) (1) (1) Business combination expenses and the amortization of purchased intangible assets, after-tax 16 29 4 5 6 6 45 12 Gain on disposition of operations, after-tax (6) (2) - (1) (1) (1) (8) (2) Operating income * $ 510 $ 608 $ 807 $ 474 $ 235 $ 322 $ 1,118 $ 557 Income per common share - Diluted Net income applicable to common shareholders $ 1.49 $ 1.79 $ 2.18 $ 1.31 $ 0.64 $ 0.57 $ 3.29 $ 1.21 Realized capital gains and losses, after-tax (0.14) (0.24) - (0.06) (0.04) 0.25 (0.38) 0.21 Valuation changes on embedded derivatives that are not hedged, after-tax - - (0.02) - 0.01 0.01 - 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 0.01 - - - - 0.02 - Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - - - - - - - Business combination expenses and the amortization of purchased intangible assets, after-tax 0.04 0.08 0.01 0.01 0.01 0.01 0.11 0.03 Gain on disposition of operations, after-tax (0.02) - - - - - (0.02) (0.01) Operating income * $ 1.38 $ 1.64 $ 2.17 $ 1.26 $ 0.62 $ 0.84 $ 3.02 $ 1.46 Weighted average common shares - Diluted 369.0 371.3 372.5 375.9 378.1 382.9 370.1 380.5 THE ALLSTATE CORPORATION CONTRIBUTION TO INCOME ($ in millions, except per share data) Six months endedThree months ended

3 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Property-Liability Property-Liability insurance premiums $ 8,018 $ 7,959 $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 15,977 $ 15,537 Net investment income 391 311 338 310 316 302 702 618 Realized capital gains and losses 85 135 14 53 26 (99) 220 (73) Total Property-Liability revenues 8,494 8,405 8,253 8,232 8,156 7,926 16,899 16,082 Allstate Financial Life and annuity premiums and contract charges 591 593 574 571 564 566 1,184 1,130 Net investment income 496 426 453 427 435 419 922 854 Realized capital gains and losses (4) (1) (11) (21) - (49) (5) (49) Total Allstate Financial revenues 1,083 1,018 1,016 977 999 936 2,101 1,935 Corporate and Other Net investment income 10 11 10 11 11 10 21 21 Realized capital gains and losses - - (1) 1 (2) (1) - (3) Total Corporate and Other revenues 10 11 9 12 9 9 21 18 Consolidated revenues $ 9,587 $ 9,434 $ 9,278 $ 9,221 $ 9,164 $ 8,871 $ 19,021 $ 18,035 THE ALLSTATE CORPORATION REVENUES ($ in millions) Six months endedThree months ended

4 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 8,018 $ - $ 8,018 $ 591 $ - $ 8,609 Claims and claims expense (5,686) (3) (5,689) - - (5,689) Contract benefits and interest credited to contractholder funds - - - (661) - (661) Amortization of deferred policy acquisition costs (1,103) - (1,103) (73) - (1,176) Operating costs and expenses (945) (2) (947) (130) (9) (1,086) Restructuring and related charges (52) - (52) (1) - (53) Interest expense - - - - (83) (83) Underwriting income (loss) $ 232 $ (5) $ 227 Net investment income 391 496 10 897 Realized capital gains and losses 85 (4) - 81 Gain on disposition of operations 10 2 - 12 Income tax (expense) benefit (229) (74) 31 (272) Preferred stock dividends - - (29) (29) Net income applicable to common shareholders $ 484 $ 146 $ (80) $ 550 Realized capital gains and losses, after-tax (56) 3 - (53) Valuation changes on embedded derivatives that are not hedged, after-tax - 1 - 1 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax - 3 - 3 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) - - (1) Business combination expenses and the amortization of purchased intangible assets, after-tax 16 - - 16 Gain on disposition of operations, after-tax (6) - - (6) Operating income (loss) * $ 437 $ 153 (1) $ (80) (1) $ 510 Allstate Esurance Encompass Answer Allstate brand brand brand SquareTrade Financial Protection Allstate Protection Products and Services Premiums and contract charges $ 7,245 $ 429 $ 274 $ 70 $ - $ 8,018 Claims and claims expense (5,112) (346) (199) (29) - (5,686) Amortization of deferred policy acquisition costs (1,032) (10) (51) (10) - (1,103) Operating costs and expenses (763) (98) (31) (53) - (945) Restructuring and related charges (46) (1) (5) - - (52) Underwriting income (loss) $ 292 $ (26) $ (12) $ (22) $ - $ 232 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 7,814 $ - $ 7,814 $ 564 $ - $ 8,378 Claims and claims expense (5,899) (2) (5,901) - - (5,901) Contract benefits and interest credited to contractholder funds - - - (639) - (639) Amortization of deferred policy acquisition costs (1,057) - (1,057) (69) - (1,126) Operating costs and expenses (912) - (912) (121) (7) (1,040) Restructuring and related charges (10) - (10) (1) - (11) Interest expense - - - - (72) (72) Underwriting income (loss) $ (64) $ (2) $ (66) Net investment income 316 435 11 762 Realized capital gains and losses 26 - (2) 24 Gain on disposition of operations - 1 - 1 Income tax (expense) benefit (78) (54) 27 (105) Preferred stock dividends - - (29) (29) Net income applicable to common shareholders $ 198 $ 116 $ (72) $ 242 Realized capital gains and losses, after-tax (18) - 1 (17) Valuation changes on embedded derivatives that are not hedged, after-tax - 4 - 4 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax - 1 - 1 - - - - Business combination expenses and the amortization of purchased intangible assets, after-tax 6 - - 6 Gain on disposition of operations, after-tax - (1) - (1) Operating income (loss) * $ 186 $ 120 (1) $ (71) (1) $ 235 Allstate Esurance Encompass Answer Allstate brand brand brand SquareTrade Financial Protection Allstate Protection Products and Services Premiums and contract charges $ 7,095 $ 415 $ 304 $ - $ - $ 7,814 Claims and claims expense (5,349) (319) (231) - - (5,899) Amortization of deferred policy acquisition costs (990) (10) (57) - - (1,057) Operating costs and expenses (757) (123) (30) - (2) (912) Restructuring and related charges (9) - (1) - - (10) Underwriting income (loss) $ (10) $ (37) $ (15) $ - $ (2) $ (64) (1) Operating income is the segment measure for Allstate Financial and Corporate and Other and is not a non-GAAP measure. For the three months ended June 30, 2016 THE ALLSTATE CORPORATION SEGMENT RESULTS ($ in millions) For the three months ended June 30, 2017 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax

5 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 15,977 $ - $ 15,977 $ 1,184 $ - $ 17,161 Claims and claims expense (11,100) (5) (11,105) - - (11,105) Contract benefits and interest credited to contractholder funds - - - (1,308) - (1,308) Amortization of deferred policy acquisition costs (2,193) - (2,193) (152) - (2,345) Operating costs and expenses (1,881) (2) (1,883) (265) (35) (2,183) Restructuring and related charges (62) - (62) (1) - (63) Interest expense - - - - (168) (168) Underwriting income (loss) $ 741 $ (7) $ 734 Net investment income 702 922 21 1,645 Realized capital gains and losses 220 (5) - 215 Gain on disposition of operations 10 4 - 14 Income tax (expense) benefit (530) (125) 66 (589) Preferred stock dividends - - (58) (58) Net income applicable to common shareholders $ 1,136 $ 254 $ (174) $ 1,216 Realized capital gains and losses, after-tax (145) 4 - (141) Valuation changes on embedded derivatives that are not hedged, after-tax - 1 - 1 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax - 6 - 6 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) - - (1) Business combination expenses and the amortization of purchased intangible assets, after-tax 32 - 13 45 Gain on disposition of operations, after-tax (6) (2) - (8) Operating income (loss) * $ 1,016 $ 263 (1) $ (161) (1) $ 1,118 Allstate Esurance Encompass Answer Allstate brand brand brand SquareTrade Financial Protection Allstate Protection Products and Services Premiums and contract charges $ 14,443 $ 848 $ 557 $ 129 $ - $ 15,977 Claims and claims expense (9,943) (660) (432) (65) - (11,100) Amortization of deferred policy acquisition costs (2,052) (20) (103) (18) - (2,193) Operating costs and expenses (1,514) (201) (62) (103) (1) (1,881) Restructuring and related charges and interest expense (54) (3) (5) - - (62) Underwriting income (loss) $ 880 $ (36) $ (45) $ (57) $ (1) $ 741 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 15,537 $ - $ 15,537 $ 1,130 $ - $ 16,667 Claims and claims expense (11,582) (3) (11,585) - - (11,585) Contract benefits and interest credited to contractholder funds - - - (1,284) - (1,284) Amortization of deferred policy acquisition costs (2,113) - (2,113) (142) - (2,255) Operating costs and expenses (1,764) (1) (1,765) (244) (13) (2,022) Restructuring and related charges and interest expense (15) - (15) (1) - (16) Interest expense - - - - (145) (145) Underwriting income (loss) $ 63 $ (4) $ 59 Net investment income 618 854 21 1,493 Realized capital gains and losses (73) (49) (3) (125) Gain on disposition of operations - 3 - 3 Income tax (expense) benefit (184) (83) 53 (214) Preferred stock dividends - - (58) (58) Net income applicable to common shareholders $ 420 $ 184 $ (145) $ 459 Realized capital gains and losses, after-tax 46 32 1 79 Valuation changes on embedded derivatives that are not hedged, after-tax - 8 - 8 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax - 2 - 2 (1) - - (1) Business combination expenses and the amortization of purchased intangible assets, after-tax 12 - - 12 Gain on disposition of operations, after-tax - (2) - (2) Operating income (loss) * $ 477 $ 224 (1) $ (144) (1) $ 557 Allstate Esurance Encompass Answer Allstate brand brand brand SquareTrade Financial Protection Allstate Protection Products and Services Premiums and contract charges $ 14,105 $ 819 $ 613 $ - $ - $ 15,537 Claims and claims expense (10,499) (613) (470) - - (11,582) Amortization of deferred policy acquisition costs (1,979) (20) (114) - - (2,113) Operating costs and expenses (1,452) (248) (61) - (3) (1,764) Restructuring and related charges and interest expense (14) - (1) - - (15) Underwriting income (loss) $ 161 $ (62) $ (33) $ - $ (3) $ 63 (1) THE ALLSTATE CORPORATION SEGMENT RESULTS ($ in millions) For the six months ended June 30, 2017 Operating income is the segment measure for Allstate Financial and Corporate and Other and is not a non-GAAP measure. For the six months ended June 30, 2016 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax

6 June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, March 31, Dec. 31, Sept. 30, June 30, 2017 2017 2016 2016 2016 2017 2017 2016 2016 2016 Assets Liabilities Investments Reserve for property-liability insurance claims and Fixed income securities, at fair value claims expense $ 25,884 $ 25,628 $ 25,250 $ 25,450 $ 24,904 (amortized cost $56,901, $57,194, Reserve for life-contingent contract benefits 12,234 12,223 12,239 12,228 12,215 $56,576, $57,775 and $55,770) $ 58,656 $ 58,636 $ 57,839 $ 60,306 $ 58,129 Contractholder funds 19,832 20,051 20,260 20,583 20,845 Equity securities, at fair value Unearned premiums 13,024 12,705 12,583 12,772 12,300 (cost $5,321, $5,026, $5,157, Claim payments outstanding 939 845 879 934 946 $4,800 and $4,924) 6,117 5,685 5,666 5,288 5,265 Deferred income taxes 1,104 833 487 935 782 Mortgage loans 4,336 4,349 4,486 4,396 4,453 Other liabilities and accrued expenses 6,583 7,018 6,599 6,122 6,192 Limited partnership interests 6,206 5,982 5,814 5,588 5,407 Long-term debt 6,348 6,346 6,347 5,110 5,109 Short-term, at fair value Separate Accounts 3,416 3,436 3,393 3,469 3,438 (amortized cost $2,175, $2,753, $4,288, Total liabilities 89,364 89,085 88,037 87,603 86,731 $1,863 and $2,850) 2,175 2,753 4,288 1,863 2,850 Other 3,815 3,738 3,706 3,663 3,590 Equity Total investments 81,305 81,143 81,799 81,104 79,694 Preferred stock and additional capital paid-in, 72.2 thousand shares outstanding 1,746 1,746 1,746 1,746 1,746 Common stock, 361 million, 365 million, 366 million, 368 million and 371 million shares outstanding (2) 9 9 9 9 9 Additional capital paid-in 3,269 3,285 3,303 3,237 3,203 Retained income 41,622 41,208 40,678 39,990 39,623 Deferred ESOP expense (6) (6) (6) (13) (13) Treasury stock, at cost (539 million, 535 million, 534 million, 532 million and 529 million shares) (25,241) (24,887) (24,741) (24,537) (24,310) Accumulated other comprehensive income: Unrealized net capital gains and losses: Unrealized net capital gains and losses on fixed income securities with other-than-temporary impairments 65 59 57 56 49 Cash 482 442 436 389 446 Other unrealized net capital gains and losses 1,590 1,304 1,091 1,902 1,702 Premium installment receivables, net 5,693 5,649 5,597 5,799 5,593 Unrealized adjustment to DAC, DSI Deferred policy acquisition costs 4,037 3,988 3,954 3,886 3,819 and insurance reserves (129) (107) (95) (141) (127) Reinsurance recoverables, net (1) 8,722 8,723 8,745 8,922 8,650 Total unrealized net capital gains and losses 1,526 1,256 1,053 1,817 1,624 Accrued investment income 573 577 567 567 564 Unrealized foreign currency translation Property and equipment, net 1,072 1,067 1,065 1,013 1,011 adjustments (42) (53) (50) (48) (41) Goodwill 2,309 2,295 1,219 1,219 1,219 Unrecognized pension and other Other assets 3,256 2,923 1,835 2,169 2,850 postretirement benefit cost (1,382) (1,400) (1,419) (1,267) (1,288) Separate Accounts 3,416 3,436 3,393 3,469 3,438 Total accumulated other comprehensive income (loss) 102 (197) (416) 502 295 Total shareholders' equity 21,501 21,158 20,573 20,934 20,553 Total assets $ 110,865 $ 110,243 $ 108,610 $ 108,537 $ 107,284 Total liabilities and shareholders' equity $ 110,865 $ 110,243 $ 108,610 $ 108,537 $ 107,284 (1) (2) THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ($ in millions) Reinsurance recoverables of unpaid losses related to Property-Liability were $6.21 billion, $6.18 billion, $6.18 billion, $6.35 billion and $6.03 billion as of June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively. Common shares outstanding were 361,280,366; 365,015,746; 365,771,746; 368,126,127 and 371,181,913 as of June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively.

7 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2016 2016 2016 2016 Book value per common share Numerator: Common shareholders' equity (1) $ 19,755 $ 19,412 $ 18,827 $ 19,188 $ 18,807 $ 18,594 Denominator: Common shares outstanding and dilutive potential common shares outstanding 367.0 370.4 370.8 372.7 375.8 380.3 Book value per common share $ 53.83 $ 52.41 $ 50.77 $ 51.48 $ 50.05 $ 48.89 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities Numerator: Common shareholders' equity $ 19,755 $ 19,412 $ 18,827 $ 19,188 $ 18,807 $ 18,594 Unrealized net capital gains and losses on fixed income securities 1,013 831 727 1,506 1,407 993 Adjusted common shareholders' equity $ 18,742 $ 18,581 $ 18,100 $ 17,682 $ 17,400 $ 17,601 Denominator: Common shares outstanding and dilutive potential common shares outstanding 367.0 370.4 370.8 372.7 375.8 380.3 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 51.07 $ 50.16 $ 48.81 $ 47.44 $ 46.30 $ 46.28 (1) BOOK VALUE PER COMMON SHARE THE ALLSTATE CORPORATION ($ in millions, except per share data) Excludes equity related to preferred stock of $1,746 million in each period.

8 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2016 2016 2016 2016 Return on Common Shareholders' Equity Numerator: Net income applicable to common shareholders (1) $ 2,518 $ 2,210 $ 1,761 $ 1,410 $ 1,540 $ 1,624 Denominator: Beginning common shareholders' equity $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Ending common shareholders' equity 19,755 19,412 18,827 19,188 18,807 18,594 Average common shareholders' equity (2) $ 19,281 $ 19,003 $ 18,553 $ 18,973 $ 19,180 $ 19,514 Return on common shareholders' equity 13.1 % 11.6 % 9.5 % 7.4 % 8.0 % 8.3 % Operating Income Return on Common Shareholders' Equity Numerator: Operating income * (1) $ 2,399 $ 2,124 $ 1,838 $ 1,656 $ 1,792 $ 1,819 Denominator: Beginning common shareholders' equity $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Unrealized net capital gains and losses 1,624 1,200 620 879 1,419 2,137 Adjusted beginning common shareholders' equity 17,183 17,394 17,659 17,879 18,133 18,296 Ending common shareholders' equity 19,755 19,412 18,827 19,188 18,807 18,594 Unrealized net capital gains and losses 1,526 1,256 1,053 1,817 1,624 1,200 Adjusted ending common shareholders' equity 18,229 18,156 17,774 17,371 17,183 17,394 Average adjusted common shareholders' equity (2) $ 17,706 $ 17,775 $ 17,717 $ 17,625 $ 17,658 $ 17,845 Operating income return on common shareholders' equity * 13.5 % 11.9 % 10.4 % 9.4 % 10.1 % 10.2 % (1) (2) THE ALLSTATE CORPORATION RETURN ON COMMON SHAREHOLDERS' EQUITY ($ in millions) Average common shareholders' equity and average adjusted common shareholders' equity are determined using a two-point average, with the beginning and ending common shareholders' equity and adjusted common shareholders' equity, respectively, for the twelve-month period as data points. Twelve months ended Net income applicable to common shareholders and operating income reflect a trailing twelve-month period.

9 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2016 2016 2016 2016 Debt Short-term debt $ - $ - $ - $ - $ - $ - Long-term debt 6,348 6,346 6,347 5,110 5,109 5,108 Total debt $ 6,348 $ 6,346 $ 6,347 $ 5,110 $ 5,109 $ 5,108 Capital resources Debt $ 6,348 $ 6,346 $ 6,347 $ 5,110 $ 5,109 $ 5,108 Shareholders' equity Preferred stock and additional capital paid-in 1,746 1,746 1,746 1,746 1,746 1,746 Common stock 9 9 9 9 9 9 Additional capital paid-in 3,269 3,285 3,303 3,237 3,203 3,237 Retained income 41,622 41,208 40,678 39,990 39,623 39,505 Deferred ESOP expense (6) (6) (6) (13) (13) (13) Treasury stock (25,241) (24,887) (24,741) (24,537) (24,310) (23,994) Unrealized net capital gains and losses 1,526 1,256 1,053 1,817 1,624 1,200 Unrealized foreign currency translation adjustments (42) (53) (50) (48) (41) (46) Unrecognized pension and other postretirement benefit cost (1,382) (1,400) (1,419) (1,267) (1,288) (1,304) Total shareholders' equity 21,501 21,158 20,573 20,934 20,553 20,340 Total capital resources $ 27,849 $ 27,504 $ 26,920 $ 26,044 $ 25,662 $ 25,448 Ratio of debt to shareholders' equity 29.5 % 30.0 % 30.9 % 24.4 % 24.9 % 25.1 % Ratio of debt to capital resources 22.8 % 23.1 % 23.6 % 19.6 % 19.9 % 20.1 % THE ALLSTATE CORPORATION DEBT TO CAPITAL ($ in millions)

10 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 579 $ 695 $ 840 $ 520 $ 271 $ 246 $ 1,274 $ 517 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other non-cash items 119 119 97 97 97 91 238 188 Realized capital gains and losses (81) (134) (2) (33) (24) 149 (215) 125 Gain on disposition of operations (12) (2) (1) (1) (1) (2) (14) (3) Interest credited to contractholder funds 175 173 168 183 185 190 348 375 Changes in: Policy benefits and other insurance reserves 45 183 (347) 401 118 459 228 577 Unearned premiums 282 (248) (178) 478 267 (205) 34 62 Deferred policy acquisition costs (79) 14 (6) (87) (65) (7) (65) (72) Premium installment receivables, net (32) (19) 194 (209) (38) 11 (51) (27) Reinsurance recoverables, net (5) 11 156 (300) (80) (40) 6 (120) Income taxes (326) 284 387 206 (150) (26) (42) (176) Other operating assets and liabilities (174) (219) (57) 129 64 (152) (393) (88) Net cash provided by operating activities 491 857 1,251 1,384 644 714 1,348 1,358 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales Fixed income securities 7,438 7,083 5,929 6,543 6,373 6,216 14,521 12,589 Equity securities 829 2,601 1,477 1,582 823 1,664 3,430 2,487 Limited partnership interests 271 210 247 271 183 180 481 363 Mortgage loans - - - - (7) 7 - - Other investments 94 24 56 62 57 87 118 144 Investment collections Fixed income securities 1,034 1,029 1,103 1,292 1,189 949 2,063 2,138 Mortgage loans 82 223 98 253 71 79 305 150 Other investments 163 174 140 113 125 43 337 168 Investment purchases Fixed income securities (8,414) (8,800) (5,708) (9,335) (7,546) (5,401) (17,214) (12,947) Equity securities (1,090) (2,383) (1,837) (1,441) (939) (1,733) (3,473) (2,672) Limited partnership interests (310) (268) (322) (425) (433) (270) (578) (703) Mortgage loans (62) (86) (186) (196) (220) (44) (148) (264) Other investments (313) (219) (211) (225) (196) (253) (532) (449) Change in short-term investments, net 570 1,572 (2,540) 763 688 (1,357) 2,142 (669) Change in other investments, net 117 (10) 9 (21) (20) (19) 107 (39) Purchases of property and equipment, net (72) (74) (123) (70) (68) (52) (146) (120) Acquisition of operations - (1,356) - - - - (1,356) - Net cash provided by (used in) investing activities 337 (280) (1,868) (834) 80 96 57 176 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt - - 1,236 - - - - - Repayments of long-term debt - - (1) - - (16) - (16) Contractholder fund deposits 258 257 264 263 261 261 515 522 Contractholder fund withdrawals (474) (483) (550) (524) (521) (492) (957) (1,013) Dividends paid on common stock (135) (122) (122) (124) (125) (115) (257) (240) Dividends paid on preferred stock (29) (29) (29) (29) (29) (29) (58) (58) Treasury stock purchases (393) (264) (183) (250) (448) (456) (657) (904) Shares reissued under equity incentive plans, net 41 67 41 51 42 30 108 72 Excess tax benefits on share-based payment arrangements - - 7 5 8 12 - 20 Other (56) 3 1 1 3 31 (53) 34 Net cash (used in) provided by financing activities (788) (571) 664 (607) (809) (774) (1,359) (1,583) NET INCREASE (DECREASE) IN CASH 40 6 47 (57) (85) 36 46 (49) CASH AT BEGINNING OF PERIOD 442 436 389 446 531 495 436 495 CASH AT END OF PERIOD $ 482 $ 442 $ 436 $ 389 $ 446 $ 531 $ 482 $ 446 THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Six months endedThree months ended

11 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 Mar. 31, 2017 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Jun. 30, 2017 Property-Liability $ 2,247 $ 1,184 $ (1,103) $ - $ - $ - $ 2,328 Allstate Financial: Traditional life and accident and health 825 52 (36) - - - 841 Interest-sensitive life 877 21 (31) (4) - (32) 831 Fixed annuity 39 - (2) - - - 37 Subtotal 1,741 73 (69) (4) - (32) 1,709 Consolidated $ 3,988 $ 1,257 $ (1,172) $ (4) $ - $ (32) $ 4,037 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 Mar. 31, 2016 deferred adjustments that are not hedged assumptions and losses Jun. 30, 2016 Property-Liability $ 2,041 $ 1,117 $ (1,057) $ - $ - $ - $ 2,101 Allstate Financial: Traditional life and accident and health 796 48 (38) - - - 806 Interest-sensitive life 924 26 (28) (1) - (53) 868 Fixed annuity 46 - (2) - - - 44 Subtotal 1,766 74 (68) (1) - (53) 1,718 Consolidated $ 3,807 $ 1,191 $ (1,125) $ (1) $ - $ (53) $ 3,819 (1) (2) Included as a component of amortization of DAC on the Consolidated Statements of Operations. 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. THE ALLSTATE CORPORATION ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS ($ in millions) Change in Deferred Policy Acquisition Costs For the three months ended June 30, 2017 Change in Deferred Policy Acquisition Costs For the three months ended June 30, 2016

12 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, 2016 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Jun. 30, 2017 and losses and losses and losses Property-Liability $ 2,188 $ 2,333 (3) $ (2,193) $ - $ - $ - $ 2,328 $ 2,328 $ - $ 2,328 Allstate Financial: Traditional life and accident and health 821 101 (81) - - - 841 841 - 841 Interest-sensitive life 905 43 (60) (8) - (49) 831 1,020 (189) 831 Fixed annuity 40 - (3) - - - 37 37 - 37 Subtotal 1,766 144 (144) (8) - (49) 1,709 1,898 (189) 1,709 Consolidated $ 3,954 $ 2,477 $ (2,337) $ (8) $ - $ (49) $ 4,037 $ 4,226 $ (189) $ 4,037 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, 2015 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Jun. 30, 2016 and losses and losses and losses Property-Liability $ 2,029 $ 2,185 $ (2,113) $ - $ - $ - $ 2,101 $ 2,101 $ - $ 2,101 Allstate Financial: Traditional life and accident and health 792 94 (80) - - - 806 806 - 806 Interest-sensitive life 993 52 (56) (3) - (118) 868 1,052 (184) 868 Fixed annuity 47 - (3) - - - 44 44 - 44 Subtotal 1,832 146 (139) (3) - (118) 1,718 1,902 (184) 1,718 Consolidated $ 3,861 $ 2,331 $ (2,252) $ (3) $ - $ (118) $ 3,819 $ 4,003 $ (184) $ 3,819 (1) (2) (3) Included as a component of amortization of DAC on the Consolidated Statements of Operations. Includes $70 million recorded in connection with the SquareTrade acquisition on January 3, 2017. For the six months ended June 30, 2017 Acquisition Costs as of June 30, 2017 THE ALLSTATE CORPORATION ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS ($ in millions) Change in Deferred Policy Acquisition Costs Reconciliation of Deferred Policy Change in Deferred Policy Acquisition Costs Reconciliation of Deferred Policy For the six months ended June 30, 2016 Acquisition Costs as of June 30, 2016 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.

13 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2016 2016 2016 2016 Policies in Force statistics (in thousands) Allstate Protection (1) Allstate brand Auto 19,548 19,565 19,742 19,852 20,061 20,145 Homeowners 6,075 6,090 6,120 6,131 6,158 6,176 Landlord 703 710 716 720 726 732 Renter 1,564 1,563 1,568 1,557 1,554 1,556 Condominium 662 663 666 665 667 667 Other 1,270 1,264 1,264 1,260 1,256 1,253 Other personal lines 4,199 4,200 4,214 4,202 4,203 4,208 Commercial lines 262 272 285 296 308 318 Allstate Roadside Services 724 743 768 797 824 856 Allstate Dealer Services 4,139 4,150 4,142 4,125 4,059 3,987 Other business lines 4,863 4,893 4,910 4,922 4,883 4,843 Total 34,947 35,020 35,271 35,403 35,613 35,690 Esurance brand Auto 1,388 1,400 1,391 1,395 1,409 1,428 Homeowners 69 63 58 52 44 37 Other personal lines 47 48 47 47 47 46 Total 1,504 1,511 1,496 1,494 1,500 1,511 Encompass brand Auto 571 595 622 649 676 701 Homeowners 273 284 295 305 318 329 Other personal lines 91 94 98 101 105 108 Total 935 973 1,015 1,055 1,099 1,138 SquareTrade (2) 31,258 29,907 - - - - Allstate Protection Policies in Force 68,644 67,411 37,782 37,952 38,212 38,339 Allstate Financial (3) Allstate Life 2,020 2,017 2,023 2,019 2,022 2,021 Allstate Benefits 4,064 3,992 3,755 3,733 3,752 3,726 Allstate Annuities 240 246 251 256 261 267 Allstate Financial Policies in Force 6,324 6,255 6,029 6,008 6,035 6,014 Total Policies in Force 74,968 73,666 43,811 43,960 44,247 44,353 Agency Data (4) Total Allstate agencies (5) 12,200 12,200 12,200 12,200 12,200 12,100 Licensed sales professionals (6) 24,000 23,600 23,800 23,600 23,800 24,000 Allstate independent agencies (7) 2,300 2,200 2,200 2,200 2,000 2,100 (1) (2) (3) (4) (5) (6) (7) Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and Canada. Employees of Allstate agencies who are licensed to sell Allstate products. Includes 509 and 488 engaged Allstate independent agencies (“AIAs”) as of June 30, 2017 and December 31, 2016, respectively. Engaged AIAs, as currently determined, include those that achieve a minimum number of new policies written. THE ALLSTATE CORPORATION POLICIES IN FORCE AND OTHER STATISTICS 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. • Non-proprietary products offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included. • Allstate Roadside Services represents memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner. • Allstate Dealer Services represents service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators (“TPAs”) as the customer relationship is managed by the TPAs. • SquareTrade represents active consumer product protection plans. SquareTrade had PIF of 28.5, 25.8, 24.4 and 23.0 million at December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. These numbers are prior to the acquisition of SquareTrade on January 3, 2017, so they are not included in the periods above. Rounded to the nearest hundred. Allstate Financial insurance policies and annuities in force reflect the number of contracts in force excluding sold blocks of business that remain on the balance sheet due to the dispositions of the business being effected through reinsurance arrangements. Policy counts associated with our voluntary employee benefits group business reflect certificate counts as opposed to group counts.

14 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Premiums written $ 8,289 $ 7,723 $ 7,723 $ 8,311 $ 8,051 $ 7,515 $ 16,012 $ 15,566 (Increase) decrease in unearned premiums (301) 234 189 (472) (264) 166 (67) (98) Other 30 2 (11) 30 27 42 32 69 Premiums earned 8,018 7,959 7,901 7,869 7,814 7,723 15,977 15,537 Claims and claims expense (5,689) (5,416) (5,083) (5,553) (5,901) (5,684) (11,105) (11,585) Amortization of deferred policy acquisition costs (1,103) (1,090) (1,086) (1,068) (1,057) (1,056) (2,193) (2,113) Operating costs and expenses (947) (936) (927) (888) (912) (853) (1,883) (1,765) Restructuring and related charges (52) (10) (9) (5) (10) (5) (62) (15) Underwriting income (loss) 227 507 796 355 (66) 125 734 59 Net investment income 391 311 338 310 316 302 702 618 Income tax expense on operations (196) (255) (383) (218) (70) (141) (451) (211) Realized capital gains and losses, after-tax 56 89 10 36 18 (64) 145 (46) Gain on disposition of operations, after-tax 6 - - - - - 6 - Net income applicable to common shareholders $ 484 $ 652 $ 761 $ 483 $ 198 $ 222 $ 1,136 $ 420 Catastrophe losses $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 1,774 $ 1,788 Amortization of purchased intangible assets $ 24 $ 25 $ 5 $ 9 $ 9 $ 9 $ 49 $ 18 Operating ratios Claims and claims expense ("loss") ratio 71.0 68.0 64.3 70.6 75.5 73.6 69.5 74.6 Expense ratio 26.2 25.6 25.6 24.9 25.3 24.8 25.9 25.0 Combined ratio 97.2 93.6 89.9 95.5 100.8 98.4 95.4 99.6 Loss ratio 71.0 68.0 64.3 70.6 75.5 73.6 69.5 74.6 Less: effect of catastrophe losses 12.4 9.8 3.8 6.1 12.3 10.7 11.1 11.5 effect of prior year non-catastrophe reserve reestimates (1.0) (1.3) (1.6) 1.3 (0.2) 0.4 (1.1) 0.1 Underlying loss ratio * 59.6 59.5 62.1 63.2 63.4 62.5 59.5 63.0 Expense ratio 26.2 25.6 25.6 24.9 25.3 24.8 25.9 25.0 Less: effect of amortization of purchased intangible assets 0.3 0.3 - 0.1 0.1 0.1 0.3 0.1 Expense ratio, excluding the effect of amortization of purchased intangible assets 25.9 25.3 25.6 24.8 25.2 24.7 25.6 24.9 Reconciliation of combined ratio to underlying combined ratio Combined ratio 97.2 93.6 89.9 95.5 100.8 98.4 95.4 99.6 Effect of catastrophe losses (12.4) (9.8) (3.8) (6.1) (12.3) (10.7) (11.1) (11.5) Effect of prior year non-catastrophe reserve reestimates 1.0 1.3 1.6 (1.3) 0.2 (0.4) 1.1 (0.1) Effect of amortization of purchased intangible assets (0.3) (0.3) - (0.1) (0.1) (0.1) (0.3) (0.1) Underlying combined ratio * 85.5 84.8 87.7 88.0 88.6 87.2 85.1 87.9 Effect of restructuring and related charges on combined ratio 0.6 0.1 0.1 0.1 0.1 0.1 0.4 0.1 Effect of Discontinued Lines and Coverages on combined ratio 0.1 - - 1.3 - - - - THE ALLSTATE CORPORATION PROPERTY-LIABILITY RESULTS ($ in millions) Six months endedThree months ended

15 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Property-Liability Underwriting Summary Allstate Protection $ 232 $ 509 $ 799 $ 455 $ (64) $ 127 $ 741 $ 63 Discontinued Lines and Coverages (5) (2) (3) (100) (2) (2) (7) (4) Underwriting income (loss) $ 227 $ 507 $ 796 $ 355 $ (66) $ 125 $ 734 $ 59 Allstate Protection Underwriting Summary Premiums written $ 8,289 $ 7,723 $ 7,722 $ 8,309 $ 8,051 $ 7,515 $ 16,012 $ 15,566 Premiums earned $ 8,018 $ 7,959 $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 15,977 $ 15,537 Claims and claims expense (5,686) (5,414) (5,080) (5,454) (5,899) (5,683) (11,100) (11,582) Amortization of deferred policy acquisition costs (1,103) (1,090) (1,086) (1,068) (1,057) (1,056) (2,193) (2,113) Operating costs and expenses (945) (936) (927) (887) (912) (852) (1,881) (1,764) Restructuring and related charges (52) (10) (9) (5) (10) (5) (62) (15) Underwriting income (loss) $ 232 $ 509 $ 799 $ 455 $ (64) $ 127 $ 741 $ 63 Catastrophe losses $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 1,774 $ 1,788 Operating ratios Loss ratio 70.9 68.0 64.3 69.3 75.5 73.6 69.5 74.6 Expense ratio 26.2 25.6 25.6 24.9 25.3 24.8 25.9 25.0 Combined ratio 97.1 93.6 89.9 94.2 100.8 98.4 95.4 99.6 Effect of catastrophe losses on combined ratio 12.4 9.8 3.8 6.1 12.3 10.7 11.1 11.5 Effect of restructuring and related charges on combined ratio 0.6 0.1 0.1 0.1 0.1 0.1 0.4 0.1 Effect of amortization of purchased intangible assets on combined ratio 0.3 0.3 - 0.1 0.1 0.1 0.3 0.1 Discontinued Lines and Coverages Underwriting Summary Premiums written $ - $ - $ 1 $ 2 $ - $ - $ - $ - Premiums earned $ - $ - $ - $ - $ - $ - $ - $ - Claims and claims expense (3) (2) (3) (99) (2) (1) (5) (3) Operating costs and expenses (2) - - (1) - (1) (2) (1) Underwriting loss $ (5) $ (2) $ (3) $ (100) $ (2) $ (2) $ (7) $ (4) Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio 0.1 - - 1.3 - 0.1 - - Allstate Protection Underwriting Income (Loss) by Brand Allstate brand $ 292 $ 588 $ 793 $ 493 $ (10) $ 171 $ 880 $ 161 Esurance brand (26) (10) (21) (41) (37) (25) (36) (62) Encompass brand (12) (33) 29 5 (15) (18) (45) (33) SquareTrade (22) (35) - - - - (57) - Answer Financial - (1) (2) (2) (2) (1) (1) (3) Underwriting income (loss) $ 232 $ 509 $ 799 $ 455 $ (64) $ 127 $ 741 $ 63 THE ALLSTATE CORPORATION PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS ($ in millions) Six months endedThree months ended

16 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Allstate brand (1) Auto $ 4,925 $ 4,882 $ 4,756 $ 4,940 $ 4,767 $ 4,746 $ 9,807 $ 9,513 Homeowners 1,847 1,403 1,638 1,869 1,831 1,392 3,250 3,223 Landlord 130 120 133 141 133 122 250 255 Renter 75 67 68 84 75 67 142 142 Condominium 68 55 63 70 67 53 123 120 Other 168 126 129 152 153 111 294 264 Other personal lines 441 368 393 447 428 353 809 781 Commercial lines 124 123 115 123 135 126 247 261 Other business lines 174 173 158 185 183 183 347 366 7,511 6,949 7,060 7,564 7,344 6,800 14,460 14,144 Esurance brand Auto 386 439 382 428 376 439 825 815 Homeowners 20 16 15 16 14 11 36 25 Other personal lines 2 2 2 2 2 2 4 4 408 457 399 446 392 452 865 844 Encompass brand Auto 148 125 138 153 162 138 273 300 Homeowners 112 91 103 121 126 104 203 230 Other personal lines 25 20 22 25 27 21 45 48 285 236 263 299 315 263 521 578 SquareTrade 85 81 - - - - 166 - Allstate Protection 8,289 7,723 7,722 8,309 8,051 7,515 16,012 15,566 Discontinued Lines and Coverages (2) - - 1 2 - - - - Property-Liability $ 8,289 $ 7,723 $ 7,723 $ 8,311 $ 8,051 $ 7,515 $ 16,012 $ 15,566 Allstate Protection Auto $ 5,459 $ 5,446 $ 5,276 $ 5,521 $ 5,305 $ 5,323 $ 10,905 $ 10,628 Homeowners 1,979 1,510 1,756 2,006 1,971 1,507 3,489 3,478 Other personal lines 468 390 417 474 457 376 858 833 Commercial lines 124 123 115 123 135 126 247 261 Other business lines 174 173 158 185 183 183 347 366 SquareTrade 85 81 - - - - 166 - $ 8,289 $ 7,723 $ 7,722 $ 8,309 $ 8,051 $ 7,515 $ 16,012 $ 15,566 Non-Proprietary Premiums Ivantage (3) $ 1,584 $ 1,566 1,544 1,531 1,528 1,504 $ 3,150 3,032 Answer Financial (4) 148 153 140 158 150 151 301 301 (1) Canada premiums included in Allstate brand Auto $ 228 $ 171 $ 182 $ 220 $ 234 $ 164 $ 399 $ 398 Homeowners 65 44 52 64 64 41 109 105 Other personal lines 16 12 13 16 16 10 28 26 $ 309 $ 227 $ 247 $ 300 $ 314 $ 215 $ 536 $ 529 (2) (3) (4) Represents non-proprietary premiums under management as of the end of the period related to personal and commercial line products offered by Ivantage when an Allstate product is not available. Fees for the three and six months ended June 30, 2017 were $27.0 million and $50.3 million, respectively. Represents non-proprietary premiums written for the period. Commissions earned for the three and six months ended June 30, 2017 were $17.9 million and $36.0 million, respectively. Primarily represents retrospective reinsurance premium recognized when billed. THE ALLSTATE CORPORATION PROPERTY-LIABILITY PREMIUMS WRITTEN BY BRAND ($ in millions) Six months endedThree months ended

17 Number of Location Number of Location Number of Location locations (7) Total brand (%) (8) specific (%) (9) locations Total brand (%) specific (%) locations Total brand (%) specific (%) Allstate brand Auto (2)(3)(4) 23 0.7 3.2 18 1.7 (10) 5.3 (10) 23 1.3 5.6 Homeowners (5)(6) 3 0.1 2.0 14 1.0 4.2 12 0.5 4.7 Esurance brand Auto 12 1.7 5.6 7 0.7 5.3 13 2.2 6.2 Homeowners - - - - - - 1 (0.5) (10.0) Encompass brand Auto 11 2.3 7.5 5 1.4 7.2 8 3.2 9.9 Homeowners 9 2.8 8.9 3 0.2 3.4 6 0.6 3.3 Number of Location Number of Location Number of Location locations Total brand (%) specific (%) locations Total brand (%) specific (%) locations Total brand (%) specific (%) Allstate brand Auto (2)(3)(4) 25 1.0 7.1 35 3.2 6.2 25 1.7 7.3 Homeowners (5)(6) 10 0.2 4.6 11 0.8 4.9 15 (0.4) (2.3) Esurance brand Auto 9 0.4 2.3 15 1.3 5.6 6 0.3 2.7 Homeowners N/A N/A N/A N/A N/A N/A N/A N/A N/A Encompass brand Auto 9 1.6 8.8 10 4.1 9.5 4 1.6 14.3 Homeowners 5 1.4 9.2 6 1.7 8.1 5 1.4 11.6 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) THE ALLSTATE CORPORATION PROPERTY-LIABILITY IMPACT OF NET RATE CHANGES APPROVED ON PREMIUMS WRITTEN Three months ended Impacts of Allstate brand auto effective rate changes as a percentage of total brand prior year-end premiums written were 1.8%, 1.1%, 1.1%, 1.5%, 3.4% and 1.4% for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively. Rate changes are included in the effective calculations in the period the rate change is effective for renewal contracts. Three months ended Three months ended March 31, 2017June 30, 2017 (1) June 30, 2016 March 31, 2016 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 50 states, the District of Columbia and Canadian provinces, rate changes approved for Allstate brand, Esurance brand and Encompass brand for the three month period ending June 30, 2017 are estimated to total $197 million. 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 a location. Includes a rate increase in California in first quarter 2017. Excluding California, Allstate brand auto total brand and location specific rate changes were 1.1% and 4.7% for the three months ended March 31, 2017, respectively. December 31, 2016 September 30, 2016 Three months ended Three months ended Three months ended Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of total brand prior year-end premiums written. Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of its respective total prior year-end premiums written in those same locations. Impacts of Allstate brand homeowners effective rate changes as a percentage of total brand prior year-end premiums written were 0.1%, 0.9%, 0.6%, 0.6%, 0.5% and 0.7% for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. Allstate brand auto and homeowners operates in 50 states, the District of Columbia, and 5 Canadian provinces. Esurance brand auto operates in 43 states and 2 Canadian provinces. Esurance brand homeowners operates in 31 states and 2 Canadian provinces. Starting in second quarter 2017, Encompass brand auto and homeowners operates in 39 states and the District of Columbia. Allstate brand auto rate changes were 4.7%, 7.2%, 7.2%, 7.8% and 8.4% for the trailing twelve months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively. Allstate brand auto rate changes were cumulatively $2.75 billion or 15.0% in 2017, 2016 and 2015. Allstate brand homeowner rate changes were cumulatively $340 million or 5.0% in 2017, 2016 and 2015.

18 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 7,511 $ 6,949 $ 7,060 $ 7,564 $ 7,344 $ 6,800 $ 14,460 $ 14,144 Net premiums earned Auto $ 4,883 $ 4,839 $ 4,826 $ 4,793 $ 4,745 $ 4,667 $ 9,722 $ 9,412 Homeowners 1,691 1,688 1,691 1,683 1,684 1,678 3,379 3,362 Other personal lines 411 405 403 399 397 393 816 790 Commercial lines 118 125 123 127 127 129 243 256 Other business lines 142 141 145 150 142 143 283 285 Total 7,245 7,198 7,188 7,152 7,095 7,010 14,443 14,105 Incurred losses Auto $ 3,441 $ 3,224 $ 3,416 $ 3,610 $ 3,634 $ 3,519 $ 6,665 $ 7,153 Homeowners 1,273 1,194 765 893 1,260 1,190 2,467 2,450 Other personal lines 258 265 234 236 256 261 523 517 Commercial lines 86 96 109 112 135 119 182 254 Other business lines 54 52 60 69 64 61 106 125 Total 5,112 4,831 4,584 4,920 5,349 5,150 9,943 10,499 Expenses Auto $ 1,236 $ 1,161 $ 1,181 $ 1,134 $ 1,168 $ 1,103 $ 2,397 $ 2,271 Homeowners 371 387 396 384 373 377 758 750 Other personal lines 115 112 117 113 106 103 227 209 Commercial lines 34 33 34 34 35 38 67 73 Other business lines 85 86 83 74 74 68 171 142 Total 1,841 1,779 1,811 1,739 1,756 1,689 3,620 3,445 Underwriting income (loss) Auto $ 206 $ 454 $ 229 $ 49 $ (57) $ 45 $ 660 $ (12) Homeowners 47 107 530 406 51 111 154 162 Other personal lines 38 28 52 50 35 29 66 64 Commercial lines (2) (4) (20) (19) (43) (28) (6) (71) Other business lines 3 3 2 7 4 14 6 18 Total 292 588 793 493 (10) 171 880 161 Loss ratio 70.6 67.1 63.8 68.8 75.4 73.5 68.8 74.5 Expense ratio 25.4 24.7 25.2 24.3 24.7 24.1 25.1 24.4 Combined ratio 96.0 91.8 89.0 93.1 100.1 97.6 93.9 98.9 Loss ratio 70.6 67.1 63.8 68.8 75.4 73.5 68.8 74.5 Less: effect of catastrophe losses 12.7 9.8 4.0 6.2 12.9 11.2 11.2 12.1 effect of prior year non-catastrophe reserve reestimates (1.1) (1.5) (1.5) - (0.3) 0.3 (1.3) - Underlying loss ratio * 59.0 58.8 61.3 62.6 62.8 62.0 58.9 62.4 Expense ratio 25.4 24.7 25.2 24.3 24.7 24.1 25.1 24.4 Less: effect of amortization of purchased intangible assets - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 25.4 24.7 25.2 24.3 24.7 24.1 25.1 24.4 Reconciliation of combined ratio to underlying combined ratio Combined ratio 96.0 91.8 89.0 93.1 100.1 97.6 93.9 98.9 Effect of catastrophe losses (12.7) (9.8) (4.0) (6.2) (12.9) (11.2) (11.2) (12.1) Effect of prior year non-catastrophe reserve reestimates 1.1 1.5 1.5 - 0.3 (0.3) 1.3 - Effect of amortization of purchased intangible assets - - - - - - - - Underlying combined ratio * 84.4 83.5 86.5 86.9 87.5 86.1 84.0 86.8 Effect of prior year reserve reestimates on combined ratio (1.1) (1.5) (1.6) - - 0.2 (1.3) 0.1 Effect of advertising expenses on combined ratio 1.8 2.0 2.4 2.2 2.2 1.5 1.9 1.9 THE ALLSTATE CORPORATION ALLSTATE BRAND PROFITABILITY MEASURES ($ in millions) Six months endedThree months ended

19 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 New Issued Applications (in thousands) (2) Auto (3) 639 610 562 584 582 584 1,249 1,166 Homeowners (4) 195 163 167 188 193 164 358 357 Average Premium - Gross Written ($) (5) Auto 544 538 537 532 516 507 541 511 Homeowners 1,192 1,187 1,181 1,181 1,171 1,174 1,190 1,173 Average Premium - Net Earned ($) (6) Auto 499 492 487 479 471 461 496 466 Homeowners 1,106 1,106 1,105 1,099 1,090 1,082 1,106 1,086 Renewal Ratio (%) (7) Auto (8) 87.4 87.4 87.4 87.5 88.0 88.0 87.4 88.0 Homeowners (9) 87.0 87.1 87.5 87.9 87.8 88.1 87.0 88.0 Auto Claim Frequency (10) (% change year-over-year) Bodily Injury Gross (4.7) (6.0) (2.0) 0.3 2.8 1.1 (5.4) 2.0 Bodily Injury Paid (11) (23.7) (20.5) (19.2) (19.6) 1.5 5.9 (22.1) 3.6 Property Damage Gross (5.2) (3.9) 1.2 3.9 5.6 2.1 (4.6) 3.8 Property Damage Paid (12) (3.4) (3.2) (1.2) 0.1 (0.1) 2.4 (3.3) 1.1 Auto Paid Claim Severity (13) (% change year-over-year) Bodily injury (11) 28.3 25.1 18.8 12.4 (2.3) (5.5) 26.6 (3.9) Property damage 1.6 4.8 1.9 1.9 5.3 7.5 3.2 6.3 Homeowners Excluding Catastrophe Losses (% change year-over-year) Gross Claim frequency (10) 6.0 7.6 2.2 5.2 (12.5) (7.7) 6.8 (10.2) Paid Claim frequency (10) 7.1 2.3 (0.5) 0.7 (14.3) (2.0) 4.7 (8.6) Paid Claim severity (0.2) 4.1 1.8 (0.5) 4.7 (2.7) 1.9 1.4 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Statistics presented for Allstate brand exclude excess and surplus lines. 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 brand. Allstate brand includes automobiles added by existing customers when they exceed the number allowed (currently 10) on a policy. 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. 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. 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. 33 states, including 6 of our 10 largest states, experienced increases in new issued applications in the second quarter of 2017 compared to the same period of 2016. 36 states, including 6 of our 10 largest states, experienced increases in new issued applications in the first six months of 2017 compared to the same period of 2016. Of our largest 10 states, 6 experienced increases in new issued applications in both the second quarter and first six months of 2017 compared to the same periods of 2016. THE ALLSTATE CORPORATION ALLSTATE BRAND STATISTICS (1) Six months endedThree months ended Paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. Decreases in bodily injury paid claim frequency and the related increase in severity reflect payment mix and claim closure patterns that were impacted by changes in bodily injury claim processes in the second half of 2016 related to enhanced documentation of injuries and related medical treatments. Paid claim severity was impacted by a reduced number of claims opened and a change in the mix of paid claims toward a higher proportion of larger severity payments and increases in medical inflationary trends that were offset by improvements in loss cost management. 2 of our largest 10 states experienced increases in the renewal ratio in both the second quarter and first six months of 2017 compared to the same periods of 2016. Of our largest 10 states, 1 experienced an increase in the renewal ratio in both the second quarter and first six months of 2017 compared to the same periods of 2016. Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period. The percent change in paid claim severity is calculated as the amount of increase or decrease in paid claim severity in the current period compared to the same period in the prior year; divided by the prior year paid claims severity. 42 states experienced a year over year decrease in property damage paid claim frequency in second quarter 2017 when compared to second quarter 2016.

20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Change in auto claim frequency (2) (% change in frequency rate year over year) % Change in gross claim frequency -2.9% 1.2% -1.8% -3.1% -2.4% -1.1% 0.8% -1.7% -0.3% -2.8% -1.3% 4.0% 6.8% 6.8% 6.4% 3.9% 1.1% 2.8% 0.3% -2.0% -6.0% -4.7% % Change in paid claim frequency (3) -0.2% 1.1% -1.0% 0.7% -2.3% -2.7% -2.1% -4.7% -4.7% -3.8% 0.2% 4.7% 2.3% 6.0% 3.5% 0.0% 5.9% 1.5% -19.6% -19.2% -20.5% -23.7% (1) (2) (3) Frequency statistics exclude counts associated with catastrophe events. Paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. Decreases in bodily injury paid claim frequency and the related increase in severity as depicted on page 19 reflect payment mix and claim closure patterns that were impacted by changes in bodily injury claim processes in the second half of 2016 related to enhanced documentation of injuries and related medical treatments. Paid claim severity was impacted by a reduced number of claims opened and a change in the mix of paid claims toward a higher proportion of larger severity payments and increases in medical inflationary trends that were offset by improvements in loss cost management. THE ALLSTATE CORPORATION ALLSTATE BRAND AUTO CLAIM FREQUENCY ANALYSIS (1) BODILY INJURY % CHANGE IN GROSS AND PAID CLAIM FREQUENCY RATE 20172012 2013 2014 2015 2016 -28.0% -24.0% -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 2017 % c ha ng e ye ar -o ve r- ye ar Rates of change in auto bodily injury frequency % change in gross claim frequency % change in paid claim frequency

21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Change in auto claim frequency (2) (% change in frequency rate year over year) % Change in gross claim frequency (3) -4.8% 0.7% -1.8% -4.3% -0.7% -0.3% 0.6% 1.4% 5.1% -2.4% -1.0% 0.5% 2.1% 6.9% 8.9% 7.5% 2.1% 5.6% 3.9% 1.2% -3.9% -5.2% % Change in paid claim frequency -4.3% -0.3% -3.4% -4.1% -4.5% 0.5% 3.7% 0.8% 2.9% -0.4% 0.4% 2.5% 2.5% 4.2% 4.7% 3.7% 2.4% -0.1% 0.1% -1.2% -3.2% -3.4% (1) (2) (3) Frequency statistics exclude counts associated with catastrophe events. Paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. With the increase in auto frequency experienced in recent quarters, claim handling processes were modified to more completely identify instances of liability at first notice of loss. Changes in property damage claim opening practices can impact gross claim frequency comparisons to prior year. This resulted in an increase in the number of counted claims as well as an increase in claims closed without payment, as in many instances, we were ultimately not required to provide indemnification. THE ALLSTATE CORPORATION ALLSTATE BRAND AUTO CLAIM FREQUENCY ANALYSIS (1) PROPERTY DAMAGE % CHANGE IN GROSS AND PAID CLAIM FREQUENCY 20172012 2013 2014 2015 2016 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 2017 % c ha ng e ye ar -o ve r- ye ar Rates of change in auto property damage frequency % change in gross claim frequency % change in paid claim frequency

22 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 408 $ 457 $ 399 $ 446 $ 392 $ 452 $ 865 $ 844 Net premiums earned Auto $ 411 $ 403 $ 408 $ 405 $ 403 $ 394 $ 814 $ 797 Homeowners 16 14 13 11 10 8 30 18 Other personal lines 2 2 2 2 2 2 4 4 Total 429 419 423 418 415 404 848 819 Incurred losses Auto $ 324 $ 300 $ 310 $ 313 $ 308 $ 289 $ 624 $ 597 Homeowners 21 13 8 11 10 4 34 14 Other personal lines 1 1 1 2 1 1 2 2 Total 346 314 319 326 319 294 660 613 Expenses Auto $ 100 $ 107 $ 114 $ 111 $ 107 $ 123 $ 207 $ 230 Homeowners 8 8 10 22 25 11 16 36 Other personal lines 1 - 1 - 1 1 1 2 Total 109 115 125 133 133 135 224 268 Underwriting income (loss) Auto (1) $ (13) $ (4) $ (16) $ (19) $ (12) $ (18) $ (17) $ (30) Homeowners (13) (7) (5) (22) (25) (7) (20) (32) Other personal lines - 1 - - - - 1 - Total (26) (10) (21) (41) (37) (25) (36) (62) Loss ratio 80.7 74.9 75.4 78.0 76.9 72.8 77.8 74.9 Expense ratio 25.4 27.5 29.6 31.8 32.0 33.4 26.4 32.7 Combined ratio 106.1 102.4 105.0 109.8 108.9 106.2 104.2 107.6 Loss ratio 80.7 74.9 75.4 78.0 76.9 72.8 77.8 74.9 Less: effect of catastrophe losses 5.6 1.9 1.2 3.3 3.4 0.7 3.7 2.1 effect of prior year non-catastrophe reserve reestimates - - (2.1) (1.0) (1.0) (1.0) - (1.0) Underlying loss ratio * 75.1 73.0 76.3 75.7 74.5 73.1 74.1 73.8 Expense ratio 25.4 27.5 29.6 31.8 32.0 33.4 26.4 32.7 Less: effect of amortization of purchased intangible assets - 0.3 0.9 1.5 1.7 1.5 0.1 1.6 Expense ratio, excluding the effect of amortization of purchased intangible assets 25.4 27.2 28.7 30.3 30.3 31.9 26.3 31.1 Reconciliation of combined ratio to underlying combined ratio Combined ratio (1)(2) 106.1 102.4 105.0 109.8 108.9 106.2 104.2 107.6 Effect of catastrophe losses (5.6) (1.9) (1.2) (3.3) (3.4) (0.7) (3.7) (2.1) Effect of prior year non-catastrophe reserve reestimates - - 2.1 1.0 1.0 1.0 - 1.0 Effect of amortization of purchased intangible assets - (0.3) (0.9) (1.5) (1.7) (1.5) (0.1) (1.6) Underlying combined ratio * (2) 100.5 100.2 105.0 106.0 104.8 105.0 100.4 104.9 Effect of prior year reserve reestimates on combined ratio (0.2) - (2.1) (1.0) (1.0) (1.0) (0.1) (1.0) Effect of advertising expenses on combined ratio (2) 8.6 8.6 9.2 11.7 12.2 11.6 8.6 12.0 Policies in Force (in thousands) Auto 1,388 1,400 1,391 1,395 1,409 1,428 1,388 1,409 Homeowners 69 63 58 52 44 37 69 44 Other personal lines 47 48 47 47 47 46 47 47 1,504 1,511 1,496 1,494 1,500 1,511 1,504 1,500 New Issued Applications (in thousands) Auto 120 143 137 151 141 168 263 309 Homeowners 9 8 9 10 11 7 17 18 Other personal lines 7 8 8 9 8 10 15 18 136 159 154 170 160 185 295 345 Average Premium - Gross Written ($) Auto 564 571 555 546 538 547 568 543 Homeowners 910 919 861 872 855 891 915 870 Renewal Ratio (%) Auto 81.9 80.4 79.3 78.9 80.0 79.6 81.1 79.8 Homeowners (3) 86.1 83.5 82.9 83.1 83.9 81.6 85.1 83.0 (1) (2) (3) Esurance’s renewal ratios exclude the impact of risk related cancellations. Customers can enter into a policy without a physical inspection. During the underwriting review period, a number of policies may be canceled if upon inspection the condition is unsatisfactory, causing the renewal ratio to appear lower. Auto underwriting income includes an underwriting loss related to Esurance expansion into Canada of $2 million or 0.5 points on the combined ratio and underlying combined ratio in both the second quarter of 2017 and 2016. Advertising expenses for US Auto and Homeowners were $35 million and $2 million in second quarter 2017 compared to $34 million and $16 million in second quarter 2016, respectively. The effect of Esurance brand US Auto and Homeowners advertising expenses on the Esurance combined ratio and underlying combined ratio was 8.2 points and 0.5 points in second quarter 2017 compared to 8.2 points and 3.9 points in second quarter 2016, respectively. Our expense ratio was impacted due to reductions in homeowners marketing spending. THE ALLSTATE CORPORATION ESURANCE PROFITABILITY MEASURES AND STATISTICS ($ in millions) Six months endedThree months ended

23 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 285 $ 236 $ 263 $ 299 $ 315 $ 263 $ 521 $ 578 Net premiums earned Auto $ 143 $ 146 $ 151 $ 155 $ 158 $ 159 $ 289 $ 317 Homeowners 108 113 115 119 121 124 221 245 Other personal lines 23 24 24 25 25 26 47 51 Total 274 283 290 299 304 309 557 613 Incurred losses Auto $ 105 $ 104 $ 104 $ 117 $ 130 $ 123 $ 209 $ 253 Homeowners 84 108 60 74 85 85 192 170 Other personal lines 10 21 13 17 16 31 31 47 Total 199 233 177 208 231 239 432 470 Expenses Auto $ 46 $ 43 $ 44 $ 44 $ 45 $ 45 $ 89 $ 90 Homeowners 34 33 33 34 36 36 67 72 Other personal lines 7 7 7 8 7 7 14 14 Total 87 83 84 86 88 88 170 176 Underwriting income (loss) Auto $ (8) $ (1) $ 3 $ (6) $ (17) $ (9) $ (9) $ (26) Homeowners (10) (28) 22 11 - 3 (38) 3 Other personal lines 6 (4) 4 - 2 (12) 2 (10) Total (12) (33) 29 5 (15) (18) (45) (33) Loss ratio 72.6 82.4 61.0 69.6 76.0 77.3 77.6 76.7 Expense ratio 31.8 29.3 29.0 28.7 28.9 28.5 30.5 28.7 Combined ratio 104.4 111.7 90.0 98.3 104.9 105.8 108.1 105.4 Loss ratio 72.6 82.4 61.0 69.6 76.0 77.3 77.6 76.7 Less: effect of catastrophe losses 19.0 23.7 3.1 9.0 11.2 13.3 21.4 12.3 effect of prior year non-catastrophe reserve reestimates (2.2) 1.4 (3.8) - 0.9 4.2 (0.4) 2.6 Underlying loss ratio * 55.8 57.3 61.7 60.6 63.9 59.8 56.6 61.8 Expense ratio 31.8 29.3 29.0 28.7 28.9 28.5 30.5 28.7 Less: effect of amortization of purchased intangible assets - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 31.8 29.3 29.0 28.7 28.9 28.5 30.5 28.7 Reconciliation of combined ratio to underlying combined ratio Combined ratio 104.4 111.7 90.0 98.3 104.9 105.8 108.1 105.4 Effect of catastrophe losses (19.0) (23.7) (3.1) (9.0) (11.2) (13.3) (21.4) (12.3) Effect of prior year non-catastrophe reserve reestimates 2.2 (1.4) 3.8 - (0.9) (4.2) 0.4 (2.6) Underlying combined ratio * 87.6 86.6 90.7 89.3 92.8 88.3 87.1 90.5 Effect of prior year reserve reestimates on combined ratio (2.9) 2.1 (3.8) 0.3 0.3 4.5 (0.4) 2.4 Effect of advertising expenses on combined ratio - - 0.3 - 0.3 - - 0.2 Policies in Force (in thousands) Auto 571 595 622 649 676 701 571 676 Homeowners 273 284 295 305 318 329 273 318 Other personal lines 91 94 98 101 105 108 91 105 935 973 1,015 1,055 1,099 1,138 935 1,099 New Issued Applications (in thousands) Auto 13 12 11 13 15 15 25 30 Homeowners 8 7 7 9 9 9 15 18 Average Premium - Gross Written ($) Auto 1,065 1,057 1,043 1,022 988 981 1,062 985 Homeowners 1,667 1,659 1,650 1,659 1,629 1,618 1,664 1,624 Renewal Ratio (%) Auto 74.2 73.1 73.1 73.1 75.5 76.1 73.7 75.8 Homeowners 78.7 78.2 78.3 77.9 79.9 81.5 78.5 80.6 THE ALLSTATE CORPORATION ENCOMPASS BRAND PROFITABILITY MEASURES AND STATISTICS ($ in millions) Six months endedThree months ended

24 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, ($ in millions) 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 85 $ 81 $ - $ - $ - $ - $ 166 $ - Net premiums earned $ 70 $ 59 $ - $ - $ - $ - $ 129 $ - Claims and claims expense $ (29) (2) $ (36) $ - $ - $ - $ - $ (65) $ - Amortization of deferred policy acquisition costs $ (10) $ (8) $ - $ - $ - $ - $ (18) $ - Other costs and expenses (30) (27) - - - - (57) - Amortization of purchased intangible assets (23) (23) - - - - (46) - Expenses (63) (58) - - - - (121) - Underwriting loss $ (22) $ (35) $ - $ - $ - $ - $ (57) $ - Net investment income - - - - - - - - Realized capital gains and losses - - - - - - - - Income tax benefit 8 12 - - - - 20 - Net loss applicable to common shareholders $ (14) $ (23) $ - $ - $ - $ - $ (37) $ - Realized capital gains and losses, after-tax - - - - - - - - Amortization of purchased intangible assets, after-tax 15 15 - - - - 30 - Operating income * $ 1 $ (8) $ - $ - $ - $ - $ (7) $ - Fair value adjustments, after-tax (3) 3 4 - - - - 7 - Adjusted SquareTrade operating income * $ 4 $ (4) $ - $ - $ - $ - $ - $ - Policies in Force (in thousands) (4) 31,258 29,907 - - - - 31,258 - (1) (2) (3) (4) SquareTrade was acquired on January 3, 2017 and therefore is only included for the quarters and year-to-date periods of 2017. Includes a $6 million favorable adjustment for loss experience. In connection with the acquisition, purchase accounting adjustments were made to recognize the acquired assets and liabilities at their fair value. The Company recorded unearned premiums of $373 million, which was reduced by $48 million, and the Company recorded contractual liability insurance policy premium expenses (reported in other assets) of $201 million and commissions paid to retailers (reported in deferred policy acquisition costs) of $70 million, which were reduced $15 million, respectively. Unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers recorded as of the acquisition date are earned over the life of the in force contracts or approximately three years. The purchase accounting adjustments had the following impact: • For the three months ended March 31, 2017, net premiums earned, incurred losses and expenses were lower by $8 million, $1.4 million and $0.6 million, pre-tax, respectively. • For the three months ended June 30, 2017, net premiums earned, incurred losses and expenses were lower by $6 million, $1.4 million and $0.6 million, pre-tax, respectively. • For the six months ended June 30, 2017, net premiums earned, incurred losses and expenses were lower by $14 million, $2.8 million and $1.2 million, pre-tax, respectively. SquareTrade had PIF of 28.5, 25.8, 24.4 and 23.0 million at December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. These numbers are prior to the acquisition of SquareTrade on January 3, 2017, so they are not reflected in the periods above. THE ALLSTATE CORPORATION SQUARETRADE PROFITABILITY MEASURES (1) Three months ended Six months ended

25 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, ($ in millions) 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written Allstate brand $ 4,925 $ 4,882 $ 4,756 $ 4,940 $ 4,767 $ 4,746 $ 9,807 $ 9,513 Esurance brand 386 439 382 428 376 439 825 815 Encompass brand 148 125 138 153 162 138 273 300 5,459 5,446 5,276 5,521 5,305 5,323 10,905 10,628 Net premiums earned Allstate brand $ 4,883 $ 4,839 $ 4,826 $ 4,793 $ 4,745 $ 4,667 $ 9,722 $ 9,412 Esurance brand 411 403 408 405 403 394 814 797 Encompass brand 143 146 151 155 158 159 289 317 5,437 5,388 5,385 5,353 5,306 5,220 10,825 10,526 Incurred losses Allstate brand $ 3,441 $ 3,224 $ 3,416 $ 3,610 $ 3,634 $ 3,519 $ 6,665 $ 7,153 Esurance brand 324 300 310 313 308 289 624 597 Encompass brand 105 104 104 117 130 123 209 253 3,870 3,628 3,830 4,040 4,072 3,931 7,498 8,003 Expenses Allstate brand $ 1,236 $ 1,161 $ 1,181 $ 1,134 $ 1,168 $ 1,103 $ 2,397 $ 2,271 Esurance brand 100 107 114 111 107 123 207 230 Encompass brand 46 43 44 44 45 45 89 90 1,382 1,311 1,339 1,289 1,320 1,271 2,693 2,591 Underwriting income (loss) Allstate brand $ 206 $ 454 $ 229 $ 49 $ (57) $ 45 $ 660 $ (12) Esurance brand (13) (4) (16) (19) (12) (18) (17) (30) Encompass brand (8) (1) 3 (6) (17) (9) (9) (26) 185 449 216 24 (86) 18 634 (68) Loss ratio Allstate brand 70.5 66.6 70.8 75.3 76.6 75.4 68.5 76.0 Esurance brand 78.9 74.4 76.0 77.3 76.4 73.4 76.7 74.9 Encompass brand 73.4 71.2 68.9 75.5 82.3 77.4 72.3 79.8 Allstate Protection 71.2 67.4 71.1 75.5 76.7 75.3 69.2 76.0 Expense ratio Allstate brand 25.3 24.0 24.5 23.7 24.6 23.6 24.7 24.1 Esurance brand 24.3 26.6 27.9 27.4 26.6 31.2 25.4 28.9 Encompass brand 32.2 29.5 29.1 28.4 28.5 28.3 30.8 28.4 Allstate Protection 25.4 24.3 24.9 24.1 24.9 24.4 24.9 24.6 Combined ratio Allstate brand 95.8 90.6 95.3 99.0 101.2 99.0 93.2 100.1 Esurance brand 103.2 101.0 103.9 104.7 103.0 104.6 102.1 103.8 Encompass brand 105.6 100.7 98.0 103.9 110.8 105.7 103.1 108.2 Allstate Protection 96.6 91.7 96.0 99.6 101.6 99.7 94.1 100.6 Effect of catastrophe losses on combined ratio Allstate brand 4.2 1.3 1.2 3.1 4.1 2.9 2.8 3.5 Esurance brand 3.6 1.0 1.0 2.2 2.2 0.5 2.4 1.4 Encompass brand 4.9 2.8 - 3.3 1.9 1.3 3.8 1.6 Allstate Protection 4.2 1.4 1.2 3.1 3.9 2.7 2.8 3.3 Effect of prior year reserve reestimates on combined ratio Allstate brand (1.2) (1.8) (2.0) (0.1) (0.8) 0.1 (1.5) (0.3) Esurance brand 0.3 - (2.2) (1.0) (1.0) (1.0) 0.1 (1.0) Encompass brand (0.7) - (3.3) (1.3) 3.2 1.3 (0.3) 2.2 Allstate Protection (1.1) (1.6) (2.1) (0.2) (0.7) 0.1 (1.4) (0.3) Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand - (0.2) - (0.1) (0.1) (0.1) (0.1) - Esurance brand - - - - - - - - Encompass brand (0.7) - (0.6) - (0.6) - (0.3) (0.3) Allstate Protection - (0.1) - (0.1) (0.1) (0.1) (0.1) - Effect of amortization of purchased intangible assets on combined ratio Esurance brand - 0.2 0.9 1.5 1.8 1.5 0.1 1.6 Allstate Protection - - - 0.1 0.1 0.1 - 0.1 THE ALLSTATE CORPORATION AUTO PROFITABILITY MEASURES Six months endedThree months ended

26 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, ($ in millions) 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written Allstate brand $ 1,847 $ 1,403 $ 1,638 $ 1,869 $ 1,831 $ 1,392 $ 3,250 $ 3,223 Esurance brand 20 16 15 16 14 11 36 25 Encompass brand 112 91 103 121 126 104 203 230 1,979 1,510 1,756 2,006 1,971 1,507 3,489 3,478 Net premiums earned Allstate brand $ 1,691 $ 1,688 $ 1,691 $ 1,683 $ 1,684 $ 1,678 $ 3,379 $ 3,362 Esurance brand 16 14 13 11 10 8 30 18 Encompass brand 108 113 115 119 121 124 221 245 1,815 1,815 1,819 1,813 1,815 1,810 3,630 3,625 Incurred losses Allstate brand $ 1,273 $ 1,194 $ 765 $ 893 $ 1,260 $ 1,190 $ 2,467 $ 2,450 Esurance brand 21 13 8 11 10 4 34 14 Encompass brand 84 108 60 74 85 85 192 170 1,378 1,315 833 978 1,355 1,279 2,693 2,634 Expenses Allstate brand $ 371 $ 387 $ 396 $ 384 $ 373 $ 377 $ 758 $ 750 Esurance brand 8 8 10 22 25 11 16 36 Encompass brand 34 33 33 34 36 36 67 72 413 428 439 440 434 424 841 858 Underwriting income (loss) Allstate brand $ 47 $ 107 $ 530 $ 406 $ 51 $ 111 $ 154 $ 162 Esurance brand (13) (7) (5) (22) (25) (7) (20) (32) Encompass brand (10) (28) 22 11 - 3 (38) 3 24 72 547 395 26 107 96 133 Loss ratio Allstate brand 75.3 70.8 45.3 53.1 74.8 70.9 73.0 72.9 Esurance brand 131.3 92.9 61.6 100.0 100.0 50.0 113.4 77.8 Encompass brand 77.8 95.6 52.2 62.2 70.2 68.6 86.9 69.4 Allstate Protection 75.9 72.4 45.8 53.9 74.7 70.7 74.2 72.6 Expense ratio Allstate brand 21.9 22.9 23.4 22.8 22.2 22.5 22.4 22.3 Esurance brand 50.0 57.1 76.9 200.0 250.0 137.5 53.3 200.0 Encompass brand 31.5 29.2 28.7 28.6 29.8 29.0 30.3 29.4 Allstate Protection 22.8 23.6 24.1 24.3 23.9 23.4 23.2 23.7 Combined ratio Allstate brand 97.2 93.7 68.7 75.9 97.0 93.4 95.4 95.2 Esurance brand 181.3 150.0 138.5 300.0 350.0 187.5 166.7 277.8 Encompass brand 109.3 124.8 80.9 90.8 100.0 97.6 117.2 98.8 Allstate Protection 98.7 96.0 69.9 78.2 98.6 94.1 97.4 96.3 Effect of catastrophe losses on combined ratio Allstate brand 38.4 34.1 10.8 15.4 38.3 34.2 36.2 36.2 Esurance brand 56.3 28.6 7.7 45.5 50.0 12.5 43.4 33.4 Encompass brand 38.9 54.0 7.8 17.6 24.0 30.7 46.6 27.4 Allstate Protection 38.6 35.2 10.6 15.7 37.4 33.9 37.0 35.6 Effect of prior year reserve reestimates on combined ratio Allstate brand (1.0) (1.6) (1.7) (0.3) 1.1 (0.5) (1.3) 0.3 Esurance brand (6.3) - - - - - (3.3) - Encompass brand (1.9) 2.7 (2.6) 1.7 - 0.8 0.5 0.4 Allstate Protection (1.1) (1.3) (1.8) (0.2) 1.0 (0.4) (1.2) 0.3 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand - 0.1 (0.5) 0.3 1.0 (0.3) - 0.3 Esurance brand (6.3) - - - - - (3.3) - Encompass brand (1.9) 1.8 - 0.8 (0.8) 1.6 - 0.4 Allstate Protection (0.2) 0.2 (0.5) 0.3 0.8 (0.2) - 0.3 THE ALLSTATE CORPORATION HOMEOWNERS PROFITABILITY MEASURES Six months endedThree months ended

27 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, ($ in millions) 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written Allstate brand $ 441 $ 368 $ 393 $ 447 $ 428 $ 353 $ 809 $ 781 Esurance brand 2 2 2 2 2 2 4 4 Encompass brand 25 20 22 25 27 21 45 48 468 390 417 474 457 376 858 833 Net premiums earned Allstate brand $ 411 $ 405 $ 403 $ 399 $ 397 $ 393 $ 816 $ 790 Esurance brand 2 2 2 2 2 2 4 4 Encompass brand 23 24 24 25 25 26 47 51 436 431 429 426 424 421 867 845 Incurred losses Allstate brand $ 258 $ 265 $ 234 $ 236 $ 256 $ 261 $ 523 $ 517 Esurance brand 1 1 1 2 1 1 2 2 Encompass brand 10 21 13 17 16 31 31 47 269 287 248 255 273 293 556 566 Expenses Allstate brand $ 115 $ 112 $ 117 $ 113 $ 106 $ 103 $ 227 $ 209 Esurance brand 1 - 1 - 1 1 1 2 Encompass brand 7 7 7 8 7 7 14 14 123 119 125 121 114 111 242 225 Underwriting income (loss) Allstate brand $ 38 $ 28 $ 52 $ 50 $ 35 $ 29 $ 66 $ 64 Esurance brand - 1 - - - - 1 - Encompass brand 6 (4) 4 - 2 (12) 2 (10) 44 25 56 50 37 17 69 54 Loss ratio Allstate brand 62.8 65.4 58.1 59.2 64.5 66.4 64.1 65.4 Esurance brand 50.0 50.0 50.0 100.0 50.0 50.0 50.0 50.0 Encompass brand 43.5 87.5 54.1 68.0 64.0 119.3 65.9 92.2 Allstate Protection 61.7 66.6 57.8 59.9 64.4 69.6 64.1 67.0 Expense ratio Allstate brand 28.0 27.7 29.0 28.3 26.7 26.2 27.8 26.5 Esurance brand 50.0 - 50.0 - 50.0 50.0 25.0 50.0 Encompass brand 30.4 29.2 29.2 32.0 28.0 26.9 29.8 27.4 Allstate Protection 28.2 27.6 29.1 28.4 26.9 26.4 27.9 26.6 Combined ratio Allstate brand 90.8 93.1 87.1 87.5 91.2 92.6 91.9 91.9 Esurance brand 100.0 50.0 100.0 100.0 100.0 100.0 75.0 100.0 Encompass brand 73.9 116.7 83.3 100.0 92.0 146.2 95.7 119.6 Allstate Protection 89.9 94.2 86.9 88.3 91.3 96.0 92.0 93.6 Effect of catastrophe losses on combined ratio Allstate brand 13.9 14.6 9.7 6.0 15.6 16.0 14.2 15.8 Esurance brand - - - - - - - - Encompass brand 13.0 8.3 - 4.0 8.0 3.8 10.6 5.9 Allstate Protection 13.8 14.1 9.1 5.9 15.1 15.2 13.9 15.1 Effect of prior year reserve reestimates on combined ratio Allstate brand (0.7) 1.5 0.5 (0.8) (1.7) (1.5) 0.4 (1.6) Esurance brand (50.0) - - - - - (25.0) - Encompass brand (21.7) 12.6 (12.5) 4.0 (16.0) 42.3 (4.3) 13.7 Allstate Protection (2.1) 2.1 (0.3) (0.5) (2.6) 1.2 - (0.7) Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand (0.5) 1.8 (0.2) (0.3) - - 0.6 - Esurance brand - - - - - - - - Encompass brand 4.4 - 4.2 - - (3.9) 2.1 (2.0) Allstate Protection (0.2) 1.6 - (0.3) - (0.3) 0.7 (0.1) (1) Other personal lines include renter, condominium, landlord and other personal lines products. THE ALLSTATE CORPORATION OTHER PERSONAL LINES PROFITABILITY MEASURES (1) Six months endedThree months ended

28 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Auto Allstate brand combined ratio 95.8 90.6 95.3 99.0 101.2 99.0 93.2 100.1 Effect of catastrophe losses (4.2) (1.3) (1.2) (3.1) (4.1) (2.9) (2.8) (3.5) Effect of prior year non-catastrophe reserve reestimates 1.2 1.6 2.0 - 0.7 (0.2) 1.4 0.3 Allstate brand underlying combined ratio * 92.8 90.9 96.1 95.9 97.8 95.9 91.8 96.9 Esurance brand combined ratio 103.2 101.0 103.9 104.7 103.0 104.6 102.1 103.8 Effect of catastrophe losses (3.6) (1.0) (1.0) (2.2) (2.2) (0.5) (2.4) (1.4) Effect of prior year non-catastrophe reserve reestimates (0.3) - 2.2 1.0 1.0 1.0 (0.1) 1.0 Effect of amortization of purchased intangible assets - (0.2) (0.9) (1.5) (1.8) (1.5) (0.1) (1.6) Esurance brand underlying combined ratio * 99.3 99.8 104.2 102.0 100.0 103.6 99.5 101.8 Encompass brand combined ratio 105.6 100.7 98.0 103.9 110.8 105.7 103.1 108.2 Effect of catastrophe losses (4.9) (2.8) - (3.3) (1.9) (1.3) (3.8) (1.6) Effect of prior year non-catastrophe reserve reestimates - - 2.7 1.3 (3.8) (1.3) - (2.5) Encompass brand underlying combined ratio * 100.7 97.9 100.7 101.9 105.1 103.1 99.3 104.1 Homeowners Allstate brand combined ratio 97.2 93.7 68.7 75.9 97.0 93.4 95.4 95.2 Effect of catastrophe losses (38.4) (34.1) (10.8) (15.4) (38.3) (34.2) (36.2) (36.2) Effect of prior year non-catastrophe reserve reestimates 1.0 1.7 1.2 0.6 (0.1) 0.2 1.3 - Allstate brand underlying combined ratio * 59.8 61.3 59.1 61.1 58.6 59.4 60.5 59.0 Esurance brand combined ratio 181.3 150.0 138.5 300.0 350.0 187.5 166.7 277.8 Effect of catastrophe losses (56.3) (28.6) (7.7) (45.5) (50.0) (12.5) (43.4) (33.4) Effect of prior year non-catastrophe reserve reestimates - - - - - - - - Esurance brand underlying combined ratio * 125.0 121.4 130.8 254.5 300.0 175.0 123.3 244.4 Encompass brand combined ratio 109.3 124.8 80.9 90.8 100.0 97.6 117.2 98.8 Effect of catastrophe losses (38.9) (54.0) (7.8) (17.6) (24.0) (30.7) (46.6) (27.4) Effect of prior year non-catastrophe reserve reestimates - (0.9) 2.6 (0.9) (0.8) 0.8 (0.5) - Encompass brand underlying combined ratio * 70.4 69.9 75.7 72.3 75.2 67.7 70.1 71.4 Other Personal Lines Allstate brand combined ratio 90.8 93.1 87.1 87.5 91.2 92.6 91.9 91.9 Effect of catastrophe losses (13.9) (14.6) (9.7) (6.0) (15.6) (16.0) (14.2) (15.8) Effect of prior year non-catastrophe reserve reestimates 0.2 0.3 (0.7) 0.5 1.7 1.5 0.2 1.6 Allstate brand underlying combined ratio * 77.1 78.8 76.7 82.0 77.3 78.1 77.9 77.7 Esurance brand combined ratio 100.0 50.0 100.0 100.0 100.0 100.0 75.0 100.0 Effect of catastrophe losses - - - - - - - - Effect of prior year non-catastrophe reserve reestimates 50.0 - - - - - 25.0 - Esurance brand underlying combined ratio * 150.0 50.0 100.0 100.0 100.0 100.0 100.0 100.0 Encompass brand combined ratio 73.9 116.7 83.3 100.0 92.0 146.2 95.7 119.6 Effect of catastrophe losses (13.0) (8.3) - (4.0) (8.0) (3.8) (10.6) (5.9) Effect of prior year non-catastrophe reserve reestimates 26.1 (12.6) 16.7 (4.0) 16.0 (46.2) 6.4 (15.7) Encompass brand underlying combined ratio * 87.0 95.8 100.0 92.0 100.0 96.2 91.5 98.0 THE ALLSTATE CORPORATION AUTO, HOMEOWNERS AND OTHER PERSONAL LINES UNDERLYING COMBINED RATIOS BY BRAND Six months endedThree months ended

29 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, ($ in millions) 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 124 $ 123 $ 115 $ 123 $ 135 $ 126 $ 247 $ 261 Net premiums earned $ 118 $ 125 $ 123 $ 127 $ 127 $ 129 $ 243 $ 256 Incurred losses $ 86 $ 96 $ 109 $ 112 $ 135 $ 119 $ 182 $ 254 Expenses $ 34 $ 33 $ 34 $ 34 $ 35 $ 38 $ 67 $ 73 Underwriting loss $ (2) $ (4) $ (20) $ (19) $ (43) $ (28) $ (6) $ (71) Loss ratio 72.9 76.8 88.6 88.2 106.3 92.2 74.9 99.2 Expense ratio 28.8 26.4 27.7 26.8 27.6 29.5 27.6 28.5 Combined ratio 101.7 103.2 116.3 115.0 133.9 121.7 102.5 127.7 Effect of catastrophe losses on combined ratio 1.7 5.6 5.7 5.5 9.5 7.0 3.7 8.2 Effect of prior year reserve reestimates on combined ratio (1.7) 1.6 4.9 10.3 18.1 15.5 - 16.8 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio (0.9) 0.8 0.8 - 0.8 2.4 - 1.6 (1) Commercial lines are all Allstate brand products. THE ALLSTATE CORPORATION COMMERCIAL LINES PROFITABILITY MEASURES (1) Six months endedThree months ended

30 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, ($ in millions) 2017 2017 2016 2016 2016 2016 2017 2016 Other Business Lines Net premiums written $ 174 $ 173 $ 158 $ 185 $ 183 $ 183 $ 347 $ 366 Net premiums earned $ 142 $ 141 $ 145 $ 150 $ 142 $ 143 $ 283 $ 285 Incurred losses (54) (52) (60) (69) (64) (61) (106) (125) Expenses (85) (86) (83) (74) (74) (68) (171) (142) Underwriting (loss) income (2) $ 3 $ 3 $ 2 $ 7 $ 4 $ 14 $ 6 $ 18 Operating ratios Loss ratio 38.0 36.9 41.4 46.0 45.1 42.7 37.5 43.9 Expense ratio 59.9 61.0 57.2 49.3 52.1 47.5 60.4 49.8 Combined ratio 97.9 97.9 98.6 95.3 97.2 90.2 97.9 93.7 Effect of catastrophe losses on combined ratio - - 0.7 - - - - - Effect of prior year reserve reestimates on combined ratio - - 0.7 2.0 - - - - Effect of amortization of purchased intangible assets - 0.7 0.6 0.6 0.7 0.7 0.4 0.7 Allstate Roadside Services Net premiums written $ 66 $ 69 $ 67 $ 79 $ 77 $ 77 $ 135 $ 154 Net premiums earned $ 67 $ 68 $ 74 $ 81 $ 78 $ 77 $ 135 $ 155 Incurred losses (33) (31) (38) (48) (42) (40) (64) (82) Expenses (42) (42) (42) (43) (38) (37) (84) (75) Underwriting (loss) income $ (8) $ (5) $ (6) $ (10) $ (2) $ - $ (13) $ (2) Operating ratios Loss ratio 49.2 45.6 51.3 59.2 53.9 51.9 47.4 52.9 Expense ratio 62.7 61.8 56.8 53.1 48.7 48.1 62.2 48.4 Combined ratio 111.9 107.4 108.1 112.3 102.6 100.0 109.6 101.3 Allstate Dealer Services Net premiums written $ 108 $ 104 $ 91 $ 106 $ 106 $ 106 $ 212 $ 212 Net premiums earned $ 75 $ 73 $ 71 $ 69 $ 64 $ 66 $ 148 $ 130 Incurred losses (21) (21) (22) (21) (22) (21) (42) (43) Expenses (55) (55) (52) (48) (49) (43) (110) (92) Underwriting (loss) income $ (1) $ (3) $ (3) $ - $ (7) $ 2 $ (4) $ (5) Operating ratios Loss ratio 28.0 28.8 31.0 30.4 34.4 31.8 28.4 33.0 Expense ratio 73.3 75.3 73.2 69.6 76.5 65.2 74.3 70.8 Combined ratio 101.3 104.1 104.2 100.0 110.9 97.0 102.7 103.8 (1) (2) Other business lines primarily include Allstate Roadside Services, Allstate Dealer Services, Arity and Ivantage. Includes Ivantage underwriting gain of $12 million, $11 million, $11 million, $17 million, $13 million and $12 million in the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. THE ALLSTATE CORPORATION OTHER BUSINESS LINES PROFITABILITY MEASURES (1) Six months endedThree months ended

31 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2016 2016 2016 2016 Auto Annualized average premium (1) $ 999 $ 989 $ 978 $ 966 $ 946 $ 927 Underlying combined ratio * 92.8 90.9 96.1 95.9 97.8 95.9 Average underlying loss (incurred pure premium) and expense * $ 927 $ 899 $ 940 $ 926 $ 925 $ 889 Homeowners Annualized average premium $ 1,117 $ 1,112 $ 1,109 $ 1,102 $ 1,098 $ 1,091 Underlying combined ratio * 59.8 61.3 59.1 61.1 58.6 59.4 Average underlying loss (incurred pure premium) and expense * $ 668 $ 682 $ 655 $ 673 $ 643 $ 648 (1) THE ALLSTATE CORPORATION Calculated by annualizing net earned premium reported in the quarter divided by policies in force at quarter end. ALLSTATE BRAND AUTO AND HOMEOWNERS UNDERLYING LOSS AND EXPENSE Three months ended

32 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 locations premiums written Florida $ 51 $ 33 64.7% $ 5 9.8% Other hurricane exposure locations 1,967 1,409 71.6% 727 37.0% Total hurricane exposure locations (2) 2,018 1,442 71.5% 732 36.3% 11 4.1% Other catastrophe exposure locations (4) 1,612 1,251 77.6% 609 37.8% 13 4.3% Total $ 3,630 $ 2,693 74.2% $ 1,341 37.0% 70 24 4.2% (1) Basis of Presentation (2) (3) (4) Includes Canada. THE ALLSTATE CORPORATION HOMEOWNERS SUPPLEMENTAL INFORMATION ($ in millions) Represents the impact in the locations where rate changes were approved during the year as a percentage of total prior year-end premiums written in those locations. 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 a coastal location that have the potential to have significant hurricane losses. The catastrophe losses for these states also 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 a winter weather 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. Premium rate changes (3) 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. Six months ended June 30, 2017

33 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Allstate brand Auto $ 208 $ 65 $ 59 $ 150 $ 195 $ 137 $ 273 $ 332 Homeowners 650 575 183 259 644 574 1,225 1,218 Other personal lines 57 59 39 24 62 63 116 125 Commercial lines 2 7 7 7 12 9 9 21 Other business lines - - 1 - - - - - Total 917 706 289 440 913 783 1,623 1,696 Esurance brand Auto 15 4 4 9 9 2 19 11 Homeowners 9 4 1 5 5 1 13 6 Other personal lines - - - - - - - - Total 24 8 5 14 14 3 32 17 Encompass brand Auto 7 4 - 5 3 2 11 5 Homeowners 42 61 9 21 29 38 103 67 Other personal lines 3 2 - 1 2 1 5 3 Total 52 67 9 27 34 41 119 75 Allstate Protection $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 1,774 $ 1,788 Allstate Protection Auto $ 230 $ 73 $ 63 $ 164 $ 207 $ 141 $ 303 $ 348 Homeowners 701 640 193 285 678 613 1,341 1,291 Other personal lines 60 61 39 25 64 64 121 128 Commercial lines 2 7 7 7 12 9 9 21 Other business lines - - 1 - - - - - $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 1,774 $ 1,788 THE ALLSTATE CORPORATION CATASTROPHE LOSSES BY BRAND ($ in millions) Six months endedThree months ended

34 Average Number Claims and Combined catastrophe Size of catastrophe of events claims expense ratio impact loss per event Greater than $250 million - - % $ - - % - - $101 million to $250 million 1 2.4 209 21.1 2.6 209 $50 million to $100 million 2 4.8 144 14.5 1.8 72 Less than $50 million 39 92.8 619 62.3 7.7 16 Total 42 100.0 % 972 97.9 12.1 23 Prior year reserve reestimates (7) (0.7) (0.1) Prior quarter reserve reestimates 28 2.8 0.4 Total catastrophe losses $ 993 100.0 % 12.4 Average Number Claims and Combined catastrophe Size of catastrophe of events claims expense ratio impact loss per event Greater than $250 million - - % $ - - % - - $101 million to $250 million 3 4.3 568 32.0 3.6 189 $50 million to $100 million 4 5.7 289 16.3 1.8 72 Less than $50 million 63 90.0 920 51.9 5.8 15 Total 70 100.0 % 1,777 100.2 11.2 25 Prior year reserve reestimates (3) (0.2) (0.1) Total catastrophe losses $ 1,774 100.0 % 11.1 Premiums Total Total Effect on the 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 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 2013 5.3 9.4 1.8 1.7 4.5 27,618 1,251 1,352 4.9 2014 6.3 13.0 7.1 1.3 6.9 28,929 1,993 2,000 6.9 2015 4.0 10.6 3.5 4.7 5.7 30,309 1,719 1,749 5.8 2016 10.7 12.3 6.1 3.8 8.2 31,307 2,572 2,419 7.7 2017 9.8 12.4 15,977 1,774 1,767 11.1 Average 7.1 13.9 8.6 5.0 8.6 7.8 ($ in millions) THE ALLSTATE CORPORATION CATASTROPHE EXPERIENCE CATASTROPHE BY SIZE OF EVENT combined ratio Three months ended June 30, 2017 EFFECT OF CATASTROPHE LOSSES ON THE COMBINED RATIO Excludes the effect of catastrophe losses relating to earthquakes and hurricanes Effect of all catastrophe losses on the Property-Liability Six months ended June 30, 2017

35 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Prior Year Reserve Reestimates (1) Auto $ (61) $ (86) $ (114) $ (10) $ (36) $ 5 $ (147) $ (31) Homeowners (20) (24) (32) (4) 19 (7) (44) 12 Other personal lines (9) 9 (1) (2) (11) 5 - (6) Commercial lines (2) 2 6 13 23 20 - 43 Other business lines - - 1 3 - - - - Allstate Protection (92) (99) (140) - (5) 23 (191) 18 Discontinued Lines and Coverages 3 2 3 99 2 1 5 3 Property-Liability $ (89) $ (97) $ (137) $ 99 $ (3) $ 24 $ (186) $ 21 Allstate brand $ (83) $ (105) $ (120) $ 3 $ (2) $ 13 $ (188) $ 11 Esurance brand (1) - (9) (4) (4) (4) (1) (8) Encompass brand (8) 6 (11) 1 1 14 (2) 15 Allstate Protection $ (92) $ (99) $ (140) $ - $ (5) $ 23 $ (191) $ 18 Catastrophe Losses included in Prior Year Reserve Reestimates Allstate brand $ (4) $ 2 $ (7) $ 2 $ 15 $ (4) $ (2) $ 11 Esurance brand (1) - - - - - (1) - Encompass brand (2) 2 - 1 (2) 1 - (1) Allstate Protection $ (7) $ 4 $ (7) $ 3 $ 13 $ (3) $ (3) $ 10 Effect of Prior Year Reserve Reestimates on Combined Ratio (1)(2) Auto (0.8) (1.0) (1.4) (0.1) (0.5) - (0.9) (0.2) Homeowners (0.3) (0.3) (0.4) (0.1) 0.3 (0.1) (0.3) 0.1 Other personal lines (0.1) 0.1 - - (0.1) - - (0.1) Commercial lines - - 0.1 0.2 0.3 0.3 - 0.3 Other business lines - - - - - - - - Allstate Protection (1.2) (1.2) (1.7) - - 0.2 (1.2) 0.1 Discontinued Lines and Coverages 0.1 - - 1.3 - 0.1 - - Property-Liability (1.1) (1.2) (1.7) 1.3 - 0.3 (1.2) 0.1 Allstate brand (1.1) (1.3) (1.5) - - 0.1 (1.2) 0.1 Esurance brand - - (0.1) - - (0.1) - (0.1) Encompass brand (0.1) 0.1 (0.1) - - 0.2 - 0.1 Allstate Protection (1.2) (1.2) (1.7) - - 0.2 (1.2) 0.1 (1) (2) Calculated using Property-Liability premiums earned for the respective period. THE ALLSTATE CORPORATION PROPERTY-LIABILITY PRIOR YEAR RESERVE REESTIMATES ($ in millions) Six months ended Favorable reserve reestimates are shown in parentheses. Three months ended

36 June 30, March 31, 2017 2017 2016 2015 2014 2013 2012 (net of reinsurance) Asbestos claims (1) Beginning reserves $ 891 $ 912 $ 960 $ 1,014 $ 1,017 $ 1,026 $ 1,078 Incurred claims and claims expense - - 67 39 87 74 26 Claims and claims expense paid (24) (21) (115) (93) (90) (83) (78) Ending reserves $ 867 $ 891 $ 912 $ 960 $ 1,014 $ 1,017 $ 1,026 Claims and claims expense paid as a percent of ending reserves 2.8% 2.4% 12.6% 9.7% 8.9% 8.2% 7.6% Environmental claims (1) Beginning reserves $ 178 $ 179 $ 179 $ 203 $ 208 $ 193 $ 185 Incurred claims and claims expense - - 23 1 15 30 22 Claims and claims expense paid (12) (1) (23) (25) (20) (15) (14) Ending reserves $ 166 $ 178 $ 179 $ 179 $ 203 $ 208 $ 193 Claims and claims expense paid as a percent of ending reserves 7.2% 0.6% 12.8% 14.0% 9.9% 7.2% 7.3% (1) The 3-year survival ratio for the combined environmental and asbestos claims was 8.3, 8.9, 10.4, 12.2, 14.4 and 14.3 for the annualized six-months of 2017 and year-end 2016, 2015, 2014, 2013 and 2012, respectively, and is calculated by taking the ending reserves divided by net payments made during the year. THE ALLSTATE CORPORATION ASBESTOS AND ENVIRONMENTAL RESERVES ($ in millions) Twelve months ended December 31,Three months ended

37 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Premiums $ 381 $ 381 $ 364 $ 361 $ 353 $ 354 $ 762 $ 707 Contract charges 210 212 210 210 211 212 422 423 Net investment income 496 426 453 427 435 419 922 854 Contract benefits (486) (474) (464) (484) (454) (455) (960) (909) Interest credited to contractholder funds (173) (173) (177) (183) (179) (184) (346) (363) Amortization of deferred policy acquisition costs (69) (75) (70) (68) (68) (71) (144) (139) Operating costs and expenses (130) (135) (127) (126) (121) (123) (265) (244) Restructuring and related charges (1) - - - (1) - (1) (1) Income tax expense on operations (75) (52) (59) (43) (56) (48) (127) (104) Operating income 153 110 130 94 120 104 263 224 Realized capital gains and losses, after-tax (3) (1) (8) (14) - (32) (4) (32) Valuation changes on embedded derivatives that are not hedged, after-tax (1) - 6 - (4) (4) (1) (8) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (3) (3) (1) (1) (1) (1) (6) (2) Gain on disposition of operations, after-tax - 2 - 1 1 1 2 2 Net income applicable to common shareholders $ 146 $ 108 $ 127 $ 80 $ 116 $ 68 $ 254 $ 184 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL SEGMENT RESULTS ($ in millions) Three months ended Six months ended

38 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2016 2016 2016 2016 Return on Attributed Equity Numerator: Net income applicable to common shareholders (1) $ 461 $ 431 $ 391 $ 303 $ 485 $ 548 Denominator: Beginning attributed equity (2) $ 8,055 $ 7,680 $ 7,350 $ 7,475 $ 7,621 $ 7,920 Ending attributed equity 7,851 7,778 7,904 8,205 8,055 7,680 Average attributed equity (3) $ 7,953 $ 7,729 $ 7,627 $ 7,840 $ 7,838 $ 7,800 Return on attributed equity 5.8 % 5.6 % 5.1 % 3.9 % 6.2 % 7.0 % Operating Income Return on Adjusted Attributed Equity * Numerator: Operating income (1) $ 487 $ 454 $ 448 $ 416 $ 460 $ 479 Denominator: Beginning attributed equity $ 8,055 $ 7,680 $ 7,350 $ 7,475 $ 7,621 $ 7,920 Unrealized net capital gains and losses 1,077 824 556 722 1,030 1,499 Adjusted beginning attributed equity 6,978 6,856 6,794 6,753 6,591 6,421 Ending attributed equity 7,851 7,778 7,904 8,205 8,055 7,680 Unrealized net capital gains and losses 916 790 721 1,150 1,077 824 Adjusted ending attributed equity 6,935 6,988 7,183 7,055 6,978 6,856 Average adjusted attributed equity (3) $ 6,957 $ 6,922 $ 6,989 $ 6,904 $ 6,785 $ 6,639 Operating income return on attributed equity * 7.0 % 6.6 % 6.4 % 6.0 % 6.8 % 7.2 % (1) (2) (3) Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company and the applicable equity for Allstate Financial Insurance Holdings Corporation, which includes Allstate Assurance Company and Allstate Heritage Life Insurance Company. 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 RETURN ON ATTRIBUTED EQUITY ($ in millions) Twelve months ended Net income applicable to common shareholders and operating income reflect a trailing twelve-month period.

39 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 PREMIUMS AND CONTRACT CHARGES - BY PRODUCT Underwritten Products Traditional life insurance premiums $ 148 $ 149 $ 151 $ 145 $ 139 $ 138 $ 297 $ 277 Accident and health insurance premiums 233 232 213 216 214 216 465 430 Interest-sensitive life insurance contract charges 207 209 206 206 208 209 416 417 588 590 570 567 561 563 1,178 1,124 Annuities Fixed annuity contract charges 3 3 4 4 3 3 6 6 Total $ 591 $ 593 $ 574 $ 571 $ 564 $ 566 $ 1,184 $ 1,130 PREMIUMS AND CONTRACT CHARGES - BY DISTRIBUTION CHANNEL Allstate agencies $ 316 $ 315 $ 312 $ 308 $ 306 $ 305 $ 631 $ 611 Workplace enrolling agents 250 250 236 238 232 233 500 465 Other (1) 25 28 26 25 26 28 53 54 Total $ 591 $ 593 $ 574 $ 571 $ 564 $ 566 $ 1,184 $ 1,130 PROPRIETARY LIFE INSURANCE POLICIES SOLD BY ALLSTATE AGENCIES (2)(3) 31,447 25,970 38,614 27,481 29,839 25,458 57,417 55,297 ALLSTATE BENEFITS NEW BUSINESS WRITTEN PREMIUMS (4) $ 73 $ 107 $ 177 $ 69 $ 70 $ 82 $ 180 $ 152 INSURANCE POLICIES AND ANNUITIES IN FORCE BY PRODUCT (in thousands) Underwritten Products Life insurance 2,483 2,476 2,478 2,477 2,480 2,469 2,483 2,480 Accident and health insurance 3,601 3,533 3,300 3,275 3,294 3,278 3,601 3,294 Total 6,084 6,009 5,778 5,752 5,774 5,747 6,084 5,774 Annuities Deferred annuities 148 152 156 160 163 168 148 163 Immediate annuities 92 94 95 96 98 99 92 98 Total 240 246 251 256 261 267 240 261 Total 6,324 6,255 6,029 6,008 6,035 6,014 6,324 6,035 INSURANCE POLICIES AND ANNUITIES IN FORCE BY SOURCE OF BUSINESS (in thousands) Allstate Agencies (5) 1,929 1,925 1,928 1,924 1,924 1,922 1,929 1,924 Allstate Benefits 4,064 3,992 3,755 3,733 3,752 3,726 4,064 3,752 Other (6) 331 338 346 351 359 366 331 359 Total 6,324 6,255 6,029 6,008 6,035 6,014 6,324 6,035 (1) (2) (3) (4) (5) (6) Primarily business sold by banks/broker-dealers, independent master brokerage agencies and specialized structured settlement brokers. THE ALLSTATE CORPORATION ALLSTATE FINANCIAL PREMIUMS AND CONTRACT CHARGES AND OTHER STATISTICS ($ in millions) Three months ended Six months ended Primarily represents independent master brokerage agencies. Policies sold reduced by lapses within twelve months of sale. Allstate exclusive agencies and exclusive financial specialists also sell non-proprietary retirement and investment products, including mutual funds, fixed and variable annuities, disability insurance, and long-term care insurance to provide a broad suite of protection and retirement products. As of June 30, 2017, Allstate agencies had approximately $15.2 billion of nonproprietary mutual funds and fixed and variable annuity account balances under management. New and additional deposits into these non-proprietary products were $997 million in the six months ended June 30, 2017. 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 business is seasonally written in the fourth quarter during many clients’ annual employee benefits enrollment. Excludes Allstate Benefits products sold through Allstate Agencies, which are included in the Allstate Benefits line.

40 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Contractholders funds, beginning balance $ 20,051 $ 20,260 $ 20,583 $ 20,845 $ 21,092 $ 21,295 $ 20,260 $ 21,295 Deposits Interest-sensitive life insurance 278 283 273 283 280 286 561 566 Fixed annuities 6 11 13 8 11 10 17 21 Total deposits 284 294 286 291 291 296 578 587 Interest credited 172 173 168 181 184 189 345 373 Benefits, withdrawals, maturities and other adjustments Benefits (230) (233) (231) (258) (225) (252) (463) (477) Surrenders and partial withdrawals (248) (253) (237) (271) (300) (245) (501) (545) Maturities of and interest payments on institutional products - - (86) - - - - - Contract charges (206) (206) (209) (208) (206) (206) (412) (412) Net transfers from separate accounts 2 2 1 2 1 1 4 2 Other adjustments 7 14 (15) 1 8 14 21 22 Total benefits, withdrawals, maturities and other adjustments (675) (676) (777) (734) (722) (688) (1,351) (1,410) Contractholder funds, ending balance $ 19,832 $ 20,051 $ 20,260 $ 20,583 $ 20,845 $ 21,092 $ 19,832 $ 20,845 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL CHANGE IN CONTRACTHOLDER FUNDS ($ in millions) Three months ended Six months ended

41 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Benefit spread Premiums $ 381 $ 381 $ 364 $ 361 $ 353 $ 354 $ 762 $ 707 Cost of insurance contract charges (1) 139 141 139 136 140 141 280 281 Contract benefits excluding the implied interest on immediate annuities with life contingencies (2) (360) (348) (336) (358) (325) (327) (708) (652) Total benefit spread 160 174 167 139 168 168 334 336 Investment spread Net investment income 496 426 453 427 435 419 922 854 Implied interest on immediate annuities with life contingencies (2) (126) (126) (128) (126) (129) (128) (252) (257) Interest credited to contractholder funds (175) (173) (168) (183) (185) (190) (348) (375) Total investment spread 195 127 157 118 121 101 322 222 Surrender charges and contract maintenance expense fees (1) 71 71 71 74 71 71 142 142 Realized capital gains and losses (4) (1) (11) (21) - (49) (5) (49) Amortization of deferred policy acquisition costs (73) (79) (71) (70) (69) (73) (152) (142) Operating costs and expenses (130) (135) (127) (126) (121) (123) (265) (244) Restructuring and related charges (1) - - - (1) - (1) (1) Gain on disposition of operations 2 2 1 1 1 2 4 3 Income tax expense (74) (51) (60) (35) (54) (29) (125) (83) Net income applicable to common shareholders $ 146 $ 108 $ 127 $ 80 $ 116 $ 68 $ 254 $ 184 Benefit spread by product group Life insurance $ 83 $ 76 $ 78 $ 64 $ 85 $ 80 $ 159 $ 165 Accident and health insurance 106 113 105 103 108 105 219 213 Annuities (29) (15) (16) (28) (25) (17) (44) (42) Total benefit spread $ 160 $ 174 $ 167 $ 139 $ 168 $ 168 $ 334 $ 336 Investment spread by product group Life insurance $ 34 $ 32 $ 33 $ 30 $ 29 $ 34 $ 66 $ 63 Accident and health insurance 4 4 4 4 4 4 8 8 Annuities and institutional products 94 28 51 25 35 17 122 52 Net investment income on investments supporting capital 64 63 60 59 59 52 127 111 Investment spread before valuation changes on embedded derivatives that are not hedged 196 127 148 118 127 107 323 234 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged (1) - 9 - (6) (6) (1) (12) Total investment spread $ 195 $ 127 $ 157 $ 118 $ 121 $ 101 $ 322 $ 222 (1) Reconciliation of contract charges Cost of insurance contract charges $ 139 $ 141 $ 139 $ 136 $ 140 $ 141 $ 280 $ 281 Surrender charges and contract maintenance expense fees 71 71 71 74 71 71 142 142 Total contract charges $ 210 $ 212 $ 210 $ 210 $ 211 $ 212 $ 422 $ 423 (2) Reconciliation of contract benefits Contract benefits excluding the implied interest on immediate annuities with life contingencies $ (360) $ (348) $ (336) $ (358) $ (325) $ (327) $ (708) $ (652) Implied interest on immediate annuities with life contingencies (126) (126) (128) (126) (129) (128) (252) (257) Total contract benefits $ (486) $ (474) $ (464) $ (484) $ (454) $ (455) $ (960) $ (909) THE ALLSTATE CORPORATION ALLSTATE FINANCIAL ANALYSIS OF NET INCOME ($ in millions) Three months ended Six months ended

42 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 % 3.8 % 1.3 % 4.8 % 3.9 % 0.9 % Deferred fixed annuities and institutional products 4.2 2.8 1.4 4.2 2.8 1.4 Immediate fixed annuities with and without life contingencies 8.9 6.0 2.9 6.5 5.8 0.7 Investments supporting capital, traditional life and other products 3.9 n/a n/a 3.9 n/a n/a 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 5.0 % 3.8 % 1.2 % 4.9 % 3.9 % 1.0 % Deferred fixed annuities and institutional products 4.3 2.8 1.5 4.1 2.8 1.3 Immediate fixed annuities with and without life contingencies 7.6 5.9 1.7 6.3 5.9 0.4 Investments supporting capital, traditional life and other products 3.9 n/a n/a 3.8 n/a n/a THE ALLSTATE CORPORATION ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS Three months ended June 30, 2017 Three months ended June 30, 2016 Six months ended June 30, 2017 Six months ended June 30, 2016

43 Twelve months ended June 30, 2017 Attributed equity Reserves and excluding unrealized June March Dec. Sept. June March Contractholder funds capital gains/losses (3)(4) Operating income (5) 2017 2017 2016 2016 2016 2016 Underwritten products Life insurance $ 11,076 $ 2,118 $ 251 10.7 % 10.4 % 9.9 % 10.1 % 10.8 % 11.1 % Accident and health insurance 888 708 83 12.2 12.8 13.2 12.8 12.4 12.2 Subtotal 11,964 2,826 334 11.1 11.0 10.6 10.6 11.1 11.3 Immediate Annuities: Sub-standard structured settlements and group pension terminations (1) 5,034 2,164 7 0.3 (0.8) (0.8) (1.7) (0.9) (0.2) Standard structured settlements and SPIA (2) 6,337 1,347 82 6.4 4.9 4.3 2.2 4.1 4.9 Subtotal (6) 11,371 3,511 89 2.6 1.5 1.2 (0.1) 1.1 2.0 Deferred Annuities 8,731 598 64 10.2 10.3 9.7 9.6 10.0 10.4 Institutional products - - - Subtotal 20,102 4,109 153 3.8 2.9 2.7 1.8 2.9 3.7 Total Allstate Financial $ 32,066 $ 6,935 $ 487 7.0 6.6 6.4 6.0 6.8 7.2 Life Accident and Annuities and Allstate insurance health insurance institutional products Financial Operating income $ 130 $ 39 $ 94 $ 263 Realized capital gains and losses, after-tax 1 - (5) (4) Valuation changes on embedded derivatives that are not hedged, after-tax - - (1) (1) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (6) - - (6) Gain on disposition of operations, after-tax - - 2 2 Net income applicable to common shareholders $ 125 $ 39 $ 90 $ 254 (1) (2) (3) (4) (5) (6) Product line operating income includes allocation of income on investments supporting capital. Operating income reflects a trailing twelve-month period. Of the total immediate annuities, $8,579 million are reported in reserve for life-contingent contract benefits and $2,792 million are reported in contractholder funds. Annuities and institutional products: Six months ended June 30, 2017 Structured settlement annuities for annuitants with severe injuries or other health impairments which significantly reduced their life expectancy at the time the annuity was issued and group annuity contracts issued to sponsors of terminated pension plans. Life-contingent structured settlement annuities for annuitants with standard life expectancy, period certain structured settlements and single premium immediate annuities with and without life contingencies. Total Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company and the applicable equity for Allstate Financial Insurance Holdings Corporation, excluding unrealized capital gains and losses. Attributed equity is allocated to each product line based on statutory capital adjusted for GAAP reporting differences and the amount of capital held in Allstate Financial may vary from economic capital. The calculation of statutory capital by product incorporates internal factors for invested asset risk, insurance risk (mortality and morbidity), interest rate risk and business risk. Due to the unavailability of final statutory financial statements at the time we release our GAAP financial results, the allocation is derived from prior quarter statutory capital. Statutory capital is adjusted for appropriate GAAP accounting differences. Changes in internal capital factors, investment portfolio mix and risk as well as changes in GAAP and statutory reporting differences will result in changes to the allocation of attributed equity to products. Twelve months ended THE ALLSTATE CORPORATION ALLSTATE FINANCIAL SUPPLEMENTAL PRODUCT INFORMATION ($ in millions) As of June 30, 2017 Operating income return on attributed equity * (%)

44 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Benefits Annuities Segment Life Benefits Annuities Segment $ 140 $ 241 $ - $ 381 $ 131 $ 222 $ - $ 353 179 28 3 210 179 29 3 211 123 19 354 496 118 18 299 435 (187) (143) (156) (486) (177) (121) (156) (454) (71) (9) (93) (173) (71) (10) (98) (179) Amortization of deferred policy acquisition costs (35) (33) (1) (69) (32) (35) (1) (68) (58) (64) (8) (130) (54) (60) (7) (121) - - (1) (1) (1) - - (1) (28) (14) (33) (75) (29) (14) (13) (56) 63 25 65 153 64 29 27 120 - - (3) (3) (2) - 2 - - - (1) (1) - - (4) (4) (3) - - (3) (1) - - (1) Gain on disposition of operations, after-tax - - - - - - 1 1 $ 60 $ 25 $ 61 $ 146 $ 61 $ 29 $ 26 $ 116 Premiums and Contract Charges - by Product Underwritten Products $ 139 $ 9 $ - $ 148 $ 130 $ 9 $ - $ 139 1 232 - 233 1 213 - 214 179 28 - 207 179 29 - 208 319 269 - 588 310 251 - 561 - - 3 3 - - 3 3 $ 319 $ 269 $ 3 $ 591 $ 310 $ 251 $ 3 $ 564 Life Insurance $ 78 $ 5 $ - $ 83 $ 78 $ 7 $ - $ 85 Accident and health insurance (2) 108 - 106 (2) 110 - 108 Annuities - - (29) (29) - - (25) (25) $ 76 $ 113 $ (29) $ 160 $ 76 $ 117 $ (25) $ 168 Life insurance $ 32 $ 2 $ - $ 34 $ 26 $ 3 $ - $ 29 Accident and health insurance - 4 - 4 2 2 - 4 Annuities and institutional products - - 94 94 - - 35 35 Net investment income on investments supporting capital 20 4 40 64 19 3 37 59 derivatives that are not hedged 52 10 134 196 47 8 72 127 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - - (1) (1) - - (6) (6) Total investment spread $ 52 $ 10 $ 133 $ 195 $ 47 $ 8 $ 66 $ 121 Investment Spread by Product Group Investment spread before valuation changes on embedded Fixed annuity contract charges Total premiums and contract charges Benefit Spread by Product Group Total benefit spread Annuities that are not hedged, after-tax DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax Net income applicable to common shareholders Traditional life insurance premiums Accident and health insurance Interest-sensitive life insurance contract charges Valuation changes on embedded derivatives Contract charges Net investment income Contract benefits Interest credited to contractholder funds Operating costs and expenses Restructuring and related charges Income tax expense on operations Operating income Realized capital gains and losses, after-tax Premiums THE ALLSTATE CORPORATION ALLSTATE LIFE, ALLSTATE BENEFITS AND ALLSTATE ANNUITIES RESULTS AND PRODUCT INFORMATION ($ in millions) For the three months ended June 30, 2017 For the three months ended June 30, 2016

45 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Benefits Annuities Segment Life Benefits Annuities Segment $ 280 $ 482 $ - $ 762 $ 261 $ 446 $ - $ 707 360 56 6 422 361 56 6 423 243 36 643 922 238 36 580 854 (382) (279) (299) (960) (357) (249) (303) (909) (140) (18) (188) (346) (141) (19) (203) (363) Amortization of deferred policy acquisition costs (67) (74) (3) (144) (63) (73) (3) (139) (117) (131) (17) (265) (110) (119) (15) (244) - - (1) (1) (1) - - (1) (55) (25) (47) (127) (58) (26) (20) (104) 122 47 94 263 130 52 42 224 1 - (5) (4) (10) (3) (19) (32) - - (1) (1) - - (8) (8) (6) - - (6) (2) - - (2) Gain on disposition of operations, after-tax - - 2 2 - - 2 2 $ 117 $ 47 $ 90 $ 254 $ 118 $ 49 $ 17 $ 184 Premiums and Contract Charges - by Product Underwritten Products $ 279 $ 18 $ - $ 297 $ 260 $ 17 $ - $ 277 1 464 - 465 1 429 - 430 360 56 - 416 361 56 - 417 640 538 - 1,178 622 502 - 1,124 - - 6 6 - - 6 6 $ 640 $ 538 $ 6 $ 1,184 $ 622 $ 502 $ 6 $ 1,130 Life Insurance $ 149 $ 10 $ - $ 159 $ 153 $ 12 $ - $ 165 Accident and health insurance (4) 223 - 219 (2) 215 - 213 Annuities - - (44) (44) - - (42) (42) $ 145 $ 233 $ (44) $ 334 $ 151 $ 227 $ (42) $ 336 Life insurance $ 61 $ 5 $ - $ 66 $ 58 $ 5 $ - $ 63 Accident and health insurance 2 6 - 8 3 5 - 8 Annuities and institutional products - - 122 122 - - 52 52 Net investment income on investments supporting capital 40 7 80 127 36 7 68 111 derivatives that are not hedged 103 18 202 323 97 17 120 234 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - - (1) (1) - - (12) (12) Total investment spread $ 103 $ 18 $ 201 $ 322 $ 97 $ 17 $ 108 $ 222 Investment Spread by Product Group Investment spread before valuation changes on embedded Fixed annuity contract charges Total premiums and contract charges Benefit Spread by Product Group Total benefit spread Annuities that are not hedged, after-tax DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax Net income applicable to common shareholders Traditional life insurance premiums Accident and health insurance Interest-sensitive life insurance contract charges Valuation changes on embedded derivatives Contract charges Net investment income Contract benefits Interest credited to contractholder funds Operating costs and expenses Restructuring and related charges Income tax expense on operations Operating income Realized capital gains and losses, after-tax Premiums THE ALLSTATE CORPORATION ALLSTATE LIFE, ALLSTATE BENEFITS AND ALLSTATE ANNUITIES RESULTS AND PRODUCT INFORMATION ($ in millions) For the six months ended June 30, 2017 For the six months ended June 30, 2016

46 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Net investment income $ 10 $ 11 $ 10 $ 11 $ 11 $ 10 $ 21 $ 21 Operating costs and expenses (9) (8) (9) (7) (7) (6) (17) (13) Interest expense (83) (85) (77) (73) (72) (73) (168) (145) Income tax benefit on operations 31 30 29 26 26 25 61 51 Preferred stock dividends (29) (29) (29) (29) (29) (29) (58) (58) Operating loss (80) (81) (76) (72) (71) (73) (161) (144) Realized capital gains and losses, after-tax - - (1) - (1) - - (1) Business combination expenses, after-tax (1) - (13) - - - - (13) - Net loss applicable to common shareholders $ (80) $ (94) $ (77) $ (72) $ (72) $ (73) $ (174) $ (145) (1) Relates to SquareTrade acquisition on January 3, 2017. THE ALLSTATE CORPORATION CORPORATE AND OTHER SEGMENT RESULTS ($ in millions) Three months ended Six months ended

47 June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, March 31, Dec. 31, Sept. 30, June 30, 2017 2017 2016 2016 2016 2017 2017 2016 2016 2016 Fixed income securities, at fair value: Tax-exempt $ 4,974 $ 4,623 $ 4,447 $ 4,798 $ 4,612 $ - $ - $ - $ 1 $ 2 Taxable 26,908 26,754 25,855 26,968 25,139 25,065 25,072 25,578 26,225 26,169 Equity securities, at fair value (1) 4,410 4,012 4,074 3,604 3,632 1,699 1,670 1,589 1,681 1,630 Mortgage loans 297 279 280 270 313 4,039 4,070 4,206 4,126 4,140 Limited partnership interests (2) 3,266 3,122 3,042 2,913 2,842 2,940 2,860 2,771 2,674 2,564 Short-term, at fair value 1,560 1,592 3,405 917 1,619 566 818 609 733 1,197 Other 1,668 1,618 1,619 1,587 1,532 2,147 2,120 2,087 2,076 2,058 Total $ 43,083 $ 42,000 $ 42,722 $ 41,057 $ 39,689 $ 36,456 $ 36,610 $ 36,840 $ 37,516 $ 37,760 Fixed income securities, amortized cost: Tax-exempt $ 4,949 $ 4,635 $ 4,498 $ 4,726 $ 4,509 $ - $ 1 $ - $ 1 $ 2 Taxable 26,585 26,529 25,706 26,447 24,746 23,678 23,860 24,424 24,330 24,357 Ratio of fair value to amortized cost 101.1% 100.7% 100.3% 101.9% 101.7% 105.9% 105.1% 104.7% 107.8% 107.4% Equity securities, cost $ 3,839 $ 3,526 $ 3,671 $ 3,212 $ 3,337 $ 1,474 $ 1,497 $ 1,483 $ 1,585 $ 1,584 Short-term, amortized cost 1,560 1,592 3,405 917 1,619 566 818 609 733 1,197 June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, March 31, Dec. 31, Sept. 30, June 30, 2017 2017 2016 2016 2016 2017 2017 2016 2016 2016 Fixed income securities, at fair value: Tax-exempt $ 546 $ 541 $ 535 $ 600 $ 609 $ 5,520 $ 5,164 $ 4,982 $ 5,399 $ 5,223 Taxable 1,163 1,646 1,424 1,714 1,598 53,136 53,472 52,857 54,907 52,906 Equity securities, at fair value 8 3 3 3 3 6,117 5,685 5,666 5,288 5,265 Mortgage loans - - - - - 4,336 4,349 4,486 4,396 4,453 Limited partnership interests - - 1 1 1 6,206 5,982 5,814 5,588 5,407 Short-term, at fair value 49 343 274 213 34 2,175 2,753 4,288 1,863 2,850 Other - - - - - 3,815 3,738 3,706 3,663 3,590 Total $ 1,766 $ 2,533 $ 2,237 $ 2,531 $ 2,245 $ 81,305 $ 81,143 $ 81,799 $ 81,104 $ 79,694 Fixed income securities, amortized cost: Tax-exempt $ 533 $ 529 $ 527 $ 580 $ 585 $ 5,482 $ 5,165 $ 5,025 $ 5,307 $ 5,096 Taxable 1,156 1,640 1,421 1,691 1,571 51,419 52,029 51,551 52,468 50,674 Ratio of fair value to amortized cost 101.2% 100.8% 100.6% 101.9% 102.4% 103.1% 102.5% 102.2% 104.4% 104.2% Equity securities, cost $ 8 $ 3 $ 3 $ 3 $ 3 $ 5,321 $ 5,026 $ 5,157 $ 4,800 $ 4,924 Short-term, amortized cost 49 343 274 213 34 2,175 2,753 4,288 1,863 2,850 (1) (2) Equity securities may include investments in exchange traded and mutual funds whose underlying investments are fixed income securities. As of June 30, 2017, we have commitments to invest in additional limited partnership interests totaling $1.66 billion, $1.41 billion and $3.07 billion for Property-Liability, Allstate Financial, and in Total, respectively. THE ALLSTATE CORPORATION INVESTMENTS ($ in millions) PROPERTY-LIABILITY ALLSTATE FINANCIAL CORPORATE AND OTHER CONSOLIDATED

48 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 $ 63 $ 3,426 101.9 $ 66 $ 4,395 101.5 $ 65 $ 3,637 101.8 Municipal 312 7,855 104.1 258 7,507 103.6 217 7,333 103.0 Corporate 1,244 44,251 102.9 992 43,535 102.3 859 43,601 102.0 Foreign government 28 1,047 102.7 32 1,027 103.2 32 1,075 103.1 Asset-backed securities ("ABS") 6 1,243 100.5 3 1,265 100.2 2 1,171 100.2 Residential mortgage-backed securities ("RMBS") 92 641 116.8 83 672 114.1 77 728 111.8 Commercial mortgage-backed securities ("CMBS") 7 170 104.3 5 211 102.4 8 270 103.1 Redeemable preferred stock 3 23 115.0 3 24 114.3 3 24 114.3 Total fixed income securities 1,755 58,656 103.1 1,442 58,636 102.5 1,263 57,839 102.2 Equity securities 796 6,117 115.0 659 5,685 113.1 509 5,666 109.9 Short-term investments - 2,175 100.0 - 2,753 100.0 - 4,288 100.0 Derivatives (1) 108 n/a - 108 n/a 2 111 n/a EMA limited partnership interests (2) (1) n/a n/a - n/a n/a (4) n/a n/a Unrealized net capital gains and losses, pre-tax 2,549 2,101 1,770 Amounts recognized for: Insurance reserves (3) - - - DAC and DSI (4) (198) (165) (146) Amounts recognized (198) (165) (146) Deferred income taxes (825) (680) (571) Unrealized net capital gains and losses, after-tax $ 1,526 $ 1,256 $ 1,053 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 $ 105 $ 4,304 102.5 $ 122 $ 3,523 103.6 $ 114 $ 3,504 103.4 Municipal 470 7,902 106.3 532 7,818 107.3 442 7,616 106.2 Corporate 1,804 44,474 104.2 1,566 42,700 103.8 989 41,272 102.5 Foreign government 59 1,119 105.6 61 1,152 105.6 55 1,054 105.5 ABS (3) 1,390 99.8 (11) 1,726 99.4 (27) 2,499 98.9 RMBS 82 778 111.8 70 818 109.4 68 875 108.4 CMBS 11 315 103.6 16 368 104.5 20 447 104.7 Redeemable preferred stock 3 24 114.3 3 24 114.3 3 24 114.3 Total fixed income securities 2,531 60,306 104.4 2,359 58,129 104.2 1,664 57,291 103.0 Equity securities 488 5,288 110.2 341 5,265 106.9 325 5,117 106.8 Short-term investments - 1,863 100.0 - 2,850 100.0 - 3,526 100.0 Derivatives 1 85 n/a 2 71 n/a 4 58 n/a EMA limited partnership interests (2) (5) n/a n/a (5) n/a n/a (5) n/a n/a Unrealized net capital gains and losses, pre-tax 3,015 2,697 1,988 Amounts recognized for: Insurance reserves (3) - - - DAC and DSI (4) (216) (195) (138) Amounts recognized (216) (195) (138) Deferred income taxes (982) (878) (650) Unrealized net capital gains and losses, after-tax $ 1,817 $ 1,624 $ 1,200 (1) (2) (3) (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 comparison of percentages from period to period may be distorted by investment transactions such as sales, purchases and impairment write-downs. Unrealized net capital gains and losses for limited partnership interests represent the Company's share of EMA limited partnerships' other comprehensive income. Fair value and amortized cost are not applicable. 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, if any, primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies. September 30, 2016 June 30, 2016 March 31, 2016 THE ALLSTATE CORPORATION UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE ($ in millions) June 30, 2017 March 31, 2017 December 31, 2016

49 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 NET INVESTMENT INCOME Fixed income securities $ 527 $ 518 $ 514 $ 508 $ 520 $ 518 $ 1,045 $ 1,038 Equity securities 49 44 34 31 44 28 93 72 Mortgage loans 50 55 55 56 53 53 105 106 Limited partnership interests ("LP") 253 120 178 136 126 121 373 247 Short-term 6 6 5 4 3 4 12 7 Other 60 56 59 55 57 51 116 108 Investment income, before expense 945 799 845 790 803 775 1,744 1,578 Less: Investment expense (48) (51) (44) (42) (41) (44) (99) (85) Net investment income $ 897 $ 748 $ 801 $ 748 $ 762 $ 731 $ 1,645 $ 1,493 Interest-bearing investments (1) $ 631 $ 625 $ 622 $ 613 $ 623 $ 618 $ 1,256 $ 1,241 Equity securities 49 44 34 31 44 28 93 72 LP and other alternative investments (2) 265 130 189 146 136 129 395 265 Investment income, before expense $ 945 $ 799 $ 845 $ 790 $ 803 $ 775 $ 1,744 $ 1,578 PRE-TAX YIELDS (3) Fixed income securities 3.7 % 3.6 % 3.6 % 3.6 % 3.7 % 3.7 % 3.7 % 3.7 % Equity securities 3.8 3.5 2.7 2.5 3.7 2.3 3.6 3.0 Mortgage loans 4.6 4.9 5.0 5.0 4.9 4.9 4.8 4.8 Limited partnership interests 16.6 8.1 12.5 9.9 9.6 9.7 12.4 9.6 Total portfolio 4.7 4.0 4.2 4.0 4.1 4.0 4.4 4.1 Interest-bearing investments 3.8 3.7 3.7 3.7 3.8 3.7 3.7 3.7 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (28) $ (43) $ (49) $ (63) $ (63) $ (59) $ (71) $ (122) Change in intent write-downs (22) (16) (21) (10) (16) (22) (38) (38) Net other-than-temporary impairment losses recognized in earnings (50) (59) (70) (73) (79) (81) (109) (160) Sales and other 139 208 47 121 104 (59) 347 45 Valuation and settlements of derivative instruments (8) (15) 25 (15) (1) (9) (23) (10) Total $ 81 $ 134 $ 2 $ 33 $ 24 $ (149) $ 215 $ (125) TOTAL RETURN ON INVESTMENT PORTFOLIO (4) Income 1.1 % 0.9 % 1.0 % 0.9 % 1.0 % 0.9 % 2.0 % 1.9 % Valuation 0.7 0.7 (1.7) 0.4 0.9 1.1 1.4 2.0 Total 1.8 % 1.6 % (0.7) % 1.3 % 1.9 % 2.0 % 3.4 % 3.9 % AVERAGE INVESTMENT BALANCES (in billions) (5) $ 78.9 $ 79.5 $ 79.1 $ 77.5 $ 76.9 $ 76.8 $ 79.3 $ 76.9 (1) (2) (3) (4) (5) Comprise fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives. Comprise limited partnership interests and other alternative investments, including real estate, timber and agriculture-related investments classified as other investments. Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the current and prior quarter investment balances. Year-to-date pre-tax yield is calculated as annualized year-to- date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate, timber and other consolidated investments is net of investee level expenses (depreciation and asset level operating expenses reported in investment expense). For investments carried at fair value, investment balances exclude unrealized capital gains and losses. 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, cost method limited partnerships, bank loans and agent loans divided by the average fair value balances. 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 NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Three months ended Six months ended

50 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 NET INVESTMENT INCOME Fixed income securities: Tax-exempt $ 23 $ 22 $ 23 $ 23 $ 23 $ 23 $ 45 $ 46 Taxable 210 204 200 192 198 200 414 398 Equity securities 33 29 24 21 30 20 62 50 Mortgage loans 2 3 3 3 3 3 5 6 Limited partnership interests 118 55 82 69 60 58 173 118 Short-term 4 4 3 3 1 2 8 3 Other 27 22 24 22 23 20 49 43 Investment income, before expense 417 339 359 333 338 326 756 664 Less: Investment expense (26) (28) (21) (23) (22) (24) (54) (46) Net investment income $ 391 $ 311 $ 338 $ 310 $ 316 $ 302 $ 702 $ 618 Net investment income, after-tax $ 264 $ 212 $ 231 $ 211 $ 215 $ 206 $ 476 $ 421 Interest-bearing investments $ 259 $ 249 $ 246 $ 238 $ 241 $ 243 $ 508 $ 484 Equity securities 33 29 24 21 30 20 62 50 LP and other alternative investments 125 61 89 74 67 63 186 130 Investment income, before expense $ 417 $ 339 $ 359 $ 333 $ 338 $ 326 $ 756 $ 664 PRE-TAX YIELDS Fixed income securities: Tax-exempt 1.9 % 1.9 % 2.0 % 2.0 % 2.1 % 2.1 % 1.9 % 2.1 % Equivalent yield for tax-exempt 2.8 2.8 2.9 2.9 3.1 3.1 2.8 3.1 Taxable 3.1 3.1 3.1 3.0 3.2 3.2 3.1 3.2 Equity securities 3.6 3.3 2.8 2.6 3.6 2.4 3.4 3.0 Mortgage loans 3.7 3.8 3.9 3.7 3.9 4.0 3.7 3.9 Limited partnership interests 14.8 7.1 11.0 9.6 8.6 8.9 11.0 8.7 Total portfolio 3.9 3.2 3.4 3.3 3.5 3.3 3.6 3.4 Interest-bearing investments 3.0 2.9 2.9 2.9 3.0 3.0 2.9 3.0 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities: Tax-exempt $ (2) $ (2) $ (9) $ 8 $ 4 $ 3 $ (4) $ 7 Taxable 40 14 (17) 9 20 (47) 54 (27) Equity securities 23 106 49 42 15 (60) 129 (45) Limited partnership interests 21 27 (29) 13 (10) 13 48 3 Derivatives and other 3 (10) 20 (19) (3) (8) (7) (11) Total $ 85 $ 135 $ 14 $ 53 $ 26 $ (99) $ 220 $ (73) REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (16) $ (22) $ (27) $ (26) $ (42) $ (35) $ (38) $ (77) Change in intent write-downs (21) (13) (17) (8) (12) (19) (34) (31) Net other-than-temporary impairment losses recognized in earnings (37) (35) (44) (34) (54) (54) (72) (108) Sales and other 126 180 43 101 82 (41) 306 41 Valuation and settlements of derivative instruments (4) (10) 15 (14) (2) (4) (14) (6) Total $ 85 $ 135 $ 14 $ 53 $ 26 $ (99) $ 220 $ (73) AVERAGE INVESTMENT BALANCES (in billions) $ 41.7 $ 41.8 $ 41.1 $ 39.5 $ 38.5 $ 38.3 $ 41.9 $ 38.5 THE ALLSTATE CORPORATION PROPERTY-LIABILITY NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Three months ended Six months ended

51 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 NET INVESTMENT INCOME Fixed income securities $ 283 $ 281 $ 280 $ 282 $ 288 $ 284 $ 564 $ 572 Equity securities 16 15 10 10 14 8 31 22 Mortgage loans 48 52 52 53 50 50 100 100 Limited partnership interests 135 65 96 67 66 63 200 129 Short-term 2 1 2 1 1 2 3 3 Other 32 33 34 32 33 30 65 63 Investment income, before expense 516 447 474 445 452 437 963 889 Less: Investment expense (20) (21) (21) (18) (17) (18) (41) (35) Net investment income $ 496 $ 426 $ 453 $ 427 $ 435 $ 419 $ 922 $ 854 Net investment income, after-tax $ 322 $ 277 $ 294 $ 278 $ 282 $ 273 $ 599 $ 555 Interest-bearing investments $ 360 $ 363 $ 364 $ 363 $ 369 $ 363 $ 723 $ 732 Equity securities 16 15 10 10 14 8 31 22 LP and other alternative investments 140 69 100 72 69 66 209 135 Investment income, before expense $ 516 $ 447 $ 474 $ 445 $ 452 $ 437 $ 963 $ 889 PRE-TAX YIELDS Fixed income securities 4.8 % 4.7 % 4.6 % 4.6 % 4.7 % 4.6 % 4.7 % 4.6 % Equity securities 4.2 4.0 2.6 2.5 3.9 2.1 4.1 2.9 Mortgage loans 4.7 5.0 5.0 5.1 4.9 4.9 4.9 4.9 Limited partnership interests 18.6 9.3 14.1 10.2 10.7 10.7 14.0 10.7 Total portfolio 5.8 5.0 5.3 4.9 5.0 4.8 5.4 4.9 Interest-bearing investments 4.7 4.7 4.7 4.6 4.6 4.6 4.7 4.6 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities $ (6) $ (7) $ (16) $ (19) $ (1) $ (26) $ (13) $ (27) Equity securities (4) - 8 3 (4) (30) (4) (34) Mortgage loans - - (1) - 1 - - 1 Limited partnership interests 10 13 (17) (1) - 13 23 13 Derivatives and other (4) (7) 15 (4) 4 (6) (11) (2) Total $ (4) $ (1) $ (11) $ (21) $ - $ (49) $ (5) $ (49) REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (12) $ (21) $ (22) $ (37) $ (18) $ (24) $ (33) $ (42) Change in intent write-downs (1) (3) (4) (2) (4) (3) (4) (7) Net other-than-temporary impairment losses recognized in earnings (13) (24) (26) (39) (22) (27) (37) (49) Sales and other 13 28 5 19 21 (17) 41 4 Valuation and settlements of derivative instruments (4) (5) 10 (1) 1 (5) (9) (4) Total $ (4) $ (1) $ (11) $ (21) $ - $ (49) $ (5) $ (49) AVERAGE INVESTMENT BALANCES (in billions) $ 35.0 $ 35.4 $ 35.6 $ 35.7 $ 35.9 $ 35.9 $ 35.2 $ 35.9 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Three months ended Six months ended

52 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 MARKET-BASED ("MB") (1) Investment Position Interest-bearing investments $ 68,331 $ 68,836 $ 69,688 $ 69,579 $ 68,357 $ 68,001 $ 68,331 $ 68,357 Equity securities 6,021 5,578 5,567 5,194 5,192 5,032 6,021 5,192 LP and other alternative investments (2) 591 555 535 481 405 403 591 405 Total $ 74,943 $ 74,969 $ 75,790 $ 75,254 $ 73,954 $ 73,436 $ 74,943 $ 73,954 Investment income Interest-bearing investments $ 629 $ 624 $ 622 $ 611 $ 618 $ 614 $ 1,253 $ 1,232 Equity securities 45 35 34 31 44 28 80 72 LP and other alternative investments - - (1) 1 - - - - Investment income, before expense 674 659 655 643 662 642 1,333 1,304 Investee level expenses (3) (2) (1) (1) (1) (1) (1) (3) (2) Income for yield calculation $ 672 $ 658 $ 654 $ 642 $ 661 $ 641 $ 1,330 $ 1,302 Market-based pre-tax yield 3.7 % 3.6 % 3.6 % 3.6 % 3.7 % 3.6 % 3.6 % 3.7 % Interest-bearing investments pre-tax yield 3.8 3.7 3.7 3.7 3.7 3.7 3.7 3.7 Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (19) $ (36) $ (26) $ (37) $ (50) $ (31) $ (55) $ (81) Change in intent write-downs (22) (16) (21) (10) (16) (21) (38) (37) Net other-than-temporary impairment losses recognized in earnings (41) (52) (47) (47) (66) (52) (93) (118) Sales and other 129 208 43 118 123 (80) 337 43 Valuation and settlements of derivative instruments (1) (10) 13 (13) (5) (6) (11) (11) Total $ 87 $ 146 $ 9 $ 58 $ 52 $ (138) $ 233 $ (86) PERFORMANCE-BASED ("PB") (4) Investment Position Interest-bearing investments $ 129 $ 108 $ 113 $ 130 $ 162 $ 162 $ 129 $ 162 Equity securities 96 107 99 94 73 85 96 73 LP and other alternative investments 6,137 5,959 5,797 5,626 5,505 5,194 6,137 5,505 Total $ 6,362 $ 6,174 $ 6,009 $ 5,850 $ 5,740 $ 5,441 $ 6,362 $ 5,740 Investment income Interest-bearing investments $ 2 $ 1 $ - $ 2 $ 5 $ 4 $ 3 $ 9 Equity securities 4 9 - - - - 13 - LP and other alternative investments 265 130 190 145 136 129 395 265 Investment income, before expense 271 140 190 147 141 133 411 274 Investee level expenses (8) (9) (8) (8) (8) (8) (17) (16) Income for yield calculation $ 263 $ 131 $ 182 $ 139 $ 133 $ 125 $ 394 $ 258 Performance-based pre-tax yield 16.8 % 8.7 % 12.3 % 9.7 % 9.5 % 9.3 % 12.8 % 9.4 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (9) $ (7) $ (23) $ (26) $ (13) $ (28) $ (16) $ (41) Change in intent write-downs - - - - - (1) - (1) Net other-than-temporary impairment losses recognized in earnings (9) (7) (23) (26) (13) (29) (16) (42) Sales and other 10 - 4 3 (19) 21 10 2 Valuation and settlements of derivative instruments (7) (5) 12 (2) 4 (3) (12) 1 Total $ (6) $ (12) $ (7) $ (25) $ (28) $ (11) $ (18) $ (39) (1) (2) (3) (4) Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities. Market-based investments include publicly traded equity securities classified as limited partnerships. When calculating the pre-tax yields, investee level expenses are netted against income for directly held real estate, timber and other consolidated investments. Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, real estate, infrastructure, timber and agriculture-related assets. THE ALLSTATE CORPORATION CONSOLIDATED INVESTMENT POSITION AND RESULTS BY STRATEGY ($ in millions) As of or for the three months ended As of or for the six months ended

53 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 MARKET-BASED Investment Position Interest-bearing investments $ 34,943 $ 34,389 $ 35,138 $ 34,057 $ 32,729 $ 31,852 $ 34,943 $ 32,729 Equity securities 4,359 3,956 4,022 3,554 3,589 3,660 4,359 3,589 LP and other alternative investments 400 376 369 333 282 277 400 282 Total $ 39,702 $ 38,721 $ 39,529 $ 37,944 $ 36,600 $ 35,789 $ 39,702 $ 36,600 Investment income Interest-bearing investments $ 257 $ 248 $ 247 $ 236 $ 239 $ 240 $ 505 $ 479 Equity securities 31 24 24 21 30 20 55 50 LP and other alternative investments - - (1) - - - - - Investment income, before expense 288 272 270 257 269 260 560 529 Investee level expenses (2) (1) (1) (1) (1) (1) (3) (2) Income for yield calculation $ 286 $ 271 $ 269 $ 256 $ 268 $ 259 $ 557 $ 527 Market-based pre-tax yield 3.0 % 2.8 % 2.8 % 2.8 % 3.0 % 2.9 % 2.9 % 3.0 % Interest-bearing investments pre-tax yield 3.0 2.9 2.9 2.9 3.0 3.0 2.9 3.0 Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (11) $ (18) $ (13) $ (14) $ (25) $ (22) $ (29) $ (47) Change in intent write-downs (21) (13) (17) (8) (12) (18) (34) (30) Net other-than-temporary impairment losses recognized in earnings (32) (31) (30) (22) (37) (40) (63) (77) Sales and other 114 181 39 98 87 (48) 295 39 Valuation and settlements of derivative instruments (1) (9) 10 (13) (4) (3) (10) (7) Total $ 81 $ 141 $ 19 $ 63 $ 46 $ (91) $ 222 $ (45) PERFORMANCE-BASED Investment Position Interest-bearing investments $ 109 $ 94 $ 95 $ 109 $ 129 $ 128 $ 109 $ 129 Equity securities 51 56 52 50 43 49 51 43 LP and other alternative investments 3,221 3,129 3,046 2,954 2,917 2,770 3,221 2,917 Total $ 3,381 $ 3,279 $ 3,193 $ 3,113 $ 3,089 $ 2,947 $ 3,381 $ 3,089 Investment income Interest-bearing investments $ 2 $ 1 $ (1) $ 2 $ 2 $ 3 $ 3 $ 5 Equity securities 2 5 - - - - 7 - LP and other alternative investments 125 61 90 74 67 63 186 130 Investment income, before expense 129 67 89 76 69 66 196 135 Investee level expenses (3) (5) (4) (4) (3) (4) (8) (7) Income for yield calculation $ 126 $ 62 $ 85 $ 72 $ 66 $ 62 $ 188 $ 128 Performance-based pre-tax yield 15.2 % 7.7 % 11.0 % 9.5 % 8.7 % 8.4 % 11.5 % 8.5 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (5) $ (4) $ (14) $ (12) $ (17) $ (13) $ (9) $ (30) Change in intent write-downs - - - - - (1) - (1) Net other-than-temporary impairment losses recognized in earnings (5) (4) (14) (12) (17) (14) (9) (31) Sales and other 12 (1) 4 3 (5) 7 11 2 Valuation and settlements of derivative instruments (3) (1) 5 (1) 2 (1) (4) 1 Total $ 4 $ (6) $ (5) $ (10) $ (20) $ (8) $ (2) $ (28) THE ALLSTATE CORPORATION PROPERTY-LIABILITY INVESTMENT POSITION AND RESULTS BY STRATEGY ($ in millions) As of or for the three months ended As of or for the six months ended

54 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 MARKET-BASED Investment Position Interest-bearing investments $ 31,630 $ 31,917 $ 32,317 $ 32,995 $ 33,387 $ 33,351 $ 31,630 $ 33,387 Equity securities 1,654 1,619 1,542 1,637 1,600 1,369 1,654 1,600 LP and other alternative investments 191 179 165 147 122 122 191 122 Total $ 33,475 $ 33,715 $ 34,024 $ 34,779 $ 35,109 $ 34,842 $ 33,475 $ 35,109 Investment income Interest-bearing investments $ 360 $ 363 $ 363 $ 363 $ 366 $ 362 $ 723 $ 728 Equity securities 14 11 10 10 14 8 25 22 LP and other alternative investments - - - 1 - - - - Investment income, before expense 374 374 373 374 380 370 748 750 Investee level expenses - - - - - - - - Income for yield calculation $ 374 $ 374 $ 373 $ 374 $ 380 $ 370 $ 748 $ 750 Market-based pre-tax yield 4.7 % 4.6 % 4.5 % 4.5 % 4.6 % 4.4 % 4.6 % 4.5 % Interest-bearing investments pre-tax yield 4.7 4.7 4.7 4.6 4.6 4.5 4.7 4.6 Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (8) $ (18) $ (13) $ (23) $ (22) $ (9) $ (26) $ (31) Change in intent write-downs (1) (3) (4) (2) (4) (3) (4) (7) Net other-than-temporary impairment losses recognized in earnings (9) (21) (17) (25) (26) (12) (30) (38) Sales and other 15 27 5 19 35 (31) 42 4 Valuation and settlements of derivative instruments - (1) 3 - (1) (3) (1) (4) Total $ 6 $ 5 $ (9) $ (6) $ 8 $ (46) $ 11 $ (38) PERFORMANCE-BASED Investment Position Interest-bearing investments $ 20 $ 14 $ 18 $ 21 $ 33 $ 34 $ 20 $ 33 Equity securities 45 51 47 44 30 36 45 30 LP and other alternative investments 2,916 2,830 2,751 2,672 2,588 2,424 2,916 2,588 Total $ 2,981 $ 2,895 $ 2,816 $ 2,737 $ 2,651 $ 2,494 $ 2,981 $ 2,651 Investment income Interest-bearing investments $ - $ - $ 1 $ - $ 3 $ 1 $ - $ 4 Equity securities 2 4 - - - - 6 - LP and other alternative investments 140 69 100 71 69 66 209 135 Investment income, before expense 142 73 101 71 72 67 215 139 Investee level expenses (5) (4) (4) (4) (5) (4) (9) (9) Income for yield calculation $ 137 $ 69 $ 97 $ 67 $ 67 $ 63 $ 206 $ 130 Performance-based pre-tax yield 18.6 % 9.8 % 13.8 % 10.0 % 10.4 % 10.4 % 14.2 % 10.4 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (4) $ (3) $ (9) $ (14) $ 4 $ (15) $ (7) $ (11) Change in intent write-downs - - - - - - - - Net other-than-temporary impairment losses recognized in earnings (4) (3) (9) (14) 4 (15) (7) (11) Sales and other (2) 1 - - (14) 14 (1) - Valuation and settlements of derivative instruments (4) (4) 7 (1) 2 (2) (8) - Total $ (10) $ (6) $ (2) $ (15) $ (8) $ (3) $ (16) $ (11) THE ALLSTATE CORPORATION ALLSTATE FINANCIAL INVESTMENT POSITION AND RESULTS BY STRATEGY ($ in millions) As of or for the three months ended As of or for the six months ended

55 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, 2017 2017 2016 2016 2016 2016 2017 2016 Investment position Limited partnerships Private equity (1) $ 4,333 $ 4,139 $ 4,031 $ 3,839 $ 3,663 $ 3,324 $ 4,333 $ 3,663 Real estate (2) 1,128 1,140 1,102 1,130 1,204 1,229 1,128 1,204 Timber and agriculture-related (3) 192 185 179 171 170 170 192 170 PB - limited partnerships 5,653 5,464 5,312 5,140 5,037 4,723 5,653 5,037 Non-LP Private equity 171 161 151 165 179 190 171 179 Real estate 373 384 380 380 358 361 373 358 Timber and agriculture-related 165 165 166 165 166 167 165 166 PB - non-LP 709 710 697 710 703 718 709 703 Total Private equity 4,504 4,300 4,182 4,004 3,842 3,514 4,504 3,842 Real estate 1,501 1,524 1,482 1,510 1,562 1,590 1,501 1,562 Timber and agriculture-related 357 350 345 336 336 337 357 336 Total PB $ 6,362 $ 6,174 $ 6,009 $ 5,850 $ 5,740 $ 5,441 $ 6,362 $ 5,740 Investment income Limited partnerships Private equity $ 209 $ 114 $ 145 $ 112 $ 113 $ 85 $ 323 $ 198 Real estate 43 4 35 23 12 33 47 45 Timber and agriculture-related 1 2 (1) - 1 3 3 4 PB - limited partnerships 253 120 179 135 126 121 373 247 Non-LP Private equity 5 9 1 2 4 2 14 6 Real estate 10 10 9 8 8 8 20 16 Timber and agriculture-related 3 1 1 2 3 2 4 5 PB - non-LP 18 20 11 12 15 12 38 27 Total Private equity 214 123 146 114 117 87 337 204 Real estate 53 14 44 31 20 41 67 61 Timber and agriculture-related 4 3 - 2 4 5 7 9 Total PB $ 271 $ 140 $ 190 $ 147 $ 141 $ 133 $ 411 $ 274 Investee level expenses $ (8) $ (9) $ (8) $ (8) $ (8) $ (8) $ (17) $ (16) Realized capital gains and losses Limited partnerships Private equity $ (8) $ (10) $ (26) $ (23) $ (20) $ 12 $ (18) $ (8) Real estate 4 1 2 2 - 1 5 1 Timber and agriculture-related - - - - - - - - PB - limited partnerships (4) (9) (24) (21) (20) 13 (13) (7) Non-LP Private equity (11) (4) 16 (4) (8) (25) (15) (33) Real estate 9 - 1 - - 1 9 1 Timber and agriculture-related - 1 - - - - 1 - PB - non-LP (2) (3) 17 (4) (8) (24) (5) (32) Total Private equity (19) (14) (10) (27) (28) (13) (33) (41) Real estate 13 1 3 2 - 2 14 2 Timber and agriculture-related - 1 - - - - 1 - Total PB $ (6) $ (12) $ (7) $ (25) $ (28) $ (11) $ (18) $ (39) Pre-Tax Yield 16.8 % 8.7 % 12.3 % 9.7 % 9.5 % 9.3 % 12.8 % 9.4 % Internal Rate of Return (4) 10 Year 8.3 % 9.5 % 10.1 % 10.1 % 10.2 % 10.5 % 5 Year 11.9 11.9 12.0 11.7 12.0 12.7 (1) (2) (3) (4) Includes Private equity on page 56, excluding Timber and agriculture-related. Includes Real estate on page 56. Includes Timber and agriculture-related reflected in Private equity on page 56. The internal rate of return ("IRR") is one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of return on the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments. THE ALLSTATE CORPORATION PERFORMANCE-BASED INVESTMENTS ($ in millions) As of or for the three months ended As of or for the six months ended

56 June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2016 2016 2016 2016 Investment position Accounting basis Cost method $ 1,269 $ 1,293 $ 1,282 $ 1,375 $ 1,284 $ 1,193 Equity method ("EMA") (1) 4,937 4,689 4,532 4,213 4,123 3,898 Total $ 6,206 $ 5,982 $ 5,814 $ 5,588 $ 5,407 $ 5,091 Cost method-fair value (2) $ 1,511 $ 1,525 $ 1,493 $ 1,600 $ 1,511 $ 1,466 Underlying investment Private equity $ 4,525 $ 4,324 $ 4,210 $ 4,010 $ 3,833 $ 3,494 Real estate 1,128 1,140 1,102 1,130 1,204 1,229 Other 553 518 502 448 370 368 Total $ 6,206 $ 5,982 $ 5,814 $ 5,588 $ 5,407 $ 5,091 Segment Property-Liability $ 3,266 $ 3,122 $ 3,042 $ 2,913 $ 2,842 $ 2,688 Allstate Financial 2,940 2,860 2,771 2,674 2,564 2,399 Corporate and Other - - 1 1 1 4 Total $ 6,206 $ 5,982 $ 5,814 $ 5,588 $ 5,407 $ 5,091 Total Income Accounting basis Cost method $ 51 $ 37 $ 26 $ 43 $ 47 $ 39 Equity method 202 83 152 93 79 82 Total $ 253 $ 120 $ 178 $ 136 $ 126 $ 121 Underlying investment Private equity $ 210 $ 116 $ 144 $ 112 $ 114 $ 88 Real estate 43 4 35 23 12 33 Other - - (1) 1 - - Total $ 253 $ 120 $ 178 $ 136 $ 126 $ 121 Segment Property-Liability $ 118 $ 55 $ 82 $ 69 $ 60 $ 58 Allstate Financial 135 65 96 67 66 63 Corporate and Other - - - - - - Total $ 253 $ 120 $ 178 $ 136 $ 126 $ 121 (1) Approximate cumulative pre-tax appreciation $ 787 $ 611 $ 511 $ 469 $ 469 $ 408 (2) The fair value of cost method limited partnerships is determined using reported net asset values. THE ALLSTATE CORPORATION LIMITED PARTNERSHIP INTERESTS ($ in millions) As of or for the three months ended

57 Definitions of Non-GAAP Measures Operating income return on common 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 common 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 common 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 common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common 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 applicable to common shareholders and return on common 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 return on common 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 common shareholders' equity from return on common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of operating income return on common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have operating income return on common shareholders' equity and return on common 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 common 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 common shareholders' equity should not be considered a substitute for return on common shareholders' equity and does not reflect the overall profitability of our business. A reconciliation of return on common shareholders' equity and operating income return on common shareholders' equity can be found in the schedule, "Return on Common Shareholders' Equity". Book value per common 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 common 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 common shares outstanding plus dilutive potential common shares outstanding. We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common 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 common 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 common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business. A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share". Adjusted SquareTrade operating income is a non-GAAP measure, which is computed as net income (loss) applicable to common shareholders, excluding amortization of purchased intangible assets, after-tax, and realized capital gains and losses, after-tax, and adjusted for the after-tax income statement effects of acquisition-related purchase accounting fair value adjustments to unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers. Net income (loss) applicable to shareholders is the GAAP measure that is most directly comparable to adjusted SquareTrade operating income. We use adjusted SquareTrade operating income as an important measure to evaluate SquareTrade’s results of operations. We believe that the measure provides investors with a valuable measure of SquareTrade’s ongoing performance because it reveals trends that may be obscured by the amortization of purchased intangible assets, the acquisition-related purchase accounting fair value adjustments, and the net effects of realized capital gains and losses. Amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We adjust for the effects of acquisition-related purchase accounting fair value adjustments because they relate to the acquisition and their effects are not indicative of the underlying business results and trends. Realized capital gains and losses 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 SquareTrade’s operations. Adjusted SquareTrade operating income highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of net income applicable to common shareholders to assess our performance. We believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted SquareTrade operating income and their components separately and in the aggregate when reviewing and evaluating SquareTrade’s performance. Adjusted SquareTrade operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of net income (loss) applicable to common shareholders to adjusted SquareTrade operating income is provided in the schedule, "SquareTrade Profitability Measures". Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. 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. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Property Liability Results", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics" and "Encompass Brand Profitability Measures and Statistics". 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 is net income applicable to common shareholders, 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, - valuation changes on embedded derivatives that are not hedged, after-tax, - amortization of deferred policy 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 applicable to common shareholders is the GAAP measure that is most directly comparable to operating income. We use operating income 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 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, 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 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 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 is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of operating income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, operating income 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 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 as the denominator. Operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of operating income to net income applicable to common shareholders is provided in the schedule, "Contribution to Income". Combined ratio excluding the effect of catastrophes, prior year reserve reestimates 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 non-catastrophe reserve reestimates on the combined ratio, the effect of 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, 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. Amortization of purchased intangible assets relates to the acquisition purchase price and is 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 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", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "SquareTrade Profitability Measures" and "Auto, Homeowners and Other Personal Lines Underlying Combined Ratios". Average underlying loss (incurred pure premium) and expense is calculated as the underlying combined ratio (a non-GAAP measure) multiplied by the GAAP quarterly earned premium, which is annualized (multiplied by 4) (“average premium”). We believe that this measure is useful to investors and it is used by management for the same reasons noted above for the underlying combined ratio. A reconciliation of average underlying loss and expense is provided in the schedule, "Allstate Brand Auto and Homeowners Underlying Loss and Expense".