Exhibit 99.2

THE ALLSTATE CORPORATION

Investor Supplement

First Quarter 2010

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 Annual Report on Form 10-K.  The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

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

THE ALLSTATE CORPORATION

Investor Supplement - First Quarter 2010

Table of Contents

	PAGE
Consolidated
Statements of Operations	1
Contribution to Income	2
Revenues	3
Statements of Financial Position	4
Book Value Per Share	5
Return on Shareholders’ Equity	6
Debt to Capital	7
Statements of Cash Flows	8
Analysis of Deferred Policy Acquisition Costs	9
Property-Liability Operations
Property-Liability Results	10
Underwriting Results by Area of Business	11
Premiums Written by Market Segment	12
Allstate Protection Market Segment Analysis	13
Allstate Protection Historical Market Segment Analysis	14
Historical Impact of Net Rate Changes Approved on Premiums Written	15
Standard Auto Profitability Measures	16
Non-standard Auto Profitability Measures	17
Auto Profitability Measures	18
Homeowners Profitability Measures	19
Allstate Brand Domestic Operating Measures and Statistics	20
Homeowners Supplemental Information	21
Effect of Catastrophe Losses on the Combined Ratio	22
Allstate Protection Historical Catastrophe by Size of Event	23
Effect of Pre-tax Prior Year Reserve Reestimates on the Combined Ratio	24
Asbestos and Environmental Reserves	25
Allstate Financial Operations and Reconciliations
Allstate Financial Results	26
Premiums and Deposits	27
Change in Contractholder Funds	28
Analysis of Net Income	29
Allstate Financial Weighted Average Investment Spreads	30
Corporate and Other Results	31
Investments
Investments	32
Fixed Income Security Portfolio By Credit Rating	33
Unrealized Net Capital Gains and Losses on Security Portfolio by Type	34
Gross Unrealized Gains and Losses on Fixed Income Securities by Type and Sector	35
Fair Value and Unrealized Net Capital Gains and Losses for Fixed Income Securities by Credit Rating	36
Realized Capital Gains and Losses by Transaction Type	37
Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	38
Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	39
Definitions of Non-GAAP and Operating Measures	40

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009 (1)
Revenues
Property-liability insurance premiums	$	6,503		$	6,517		$	6,535		$	6,560		$	6,582
Life and annuity premiums and contract charges		544			498			482			494			484
Net investment income		1,050			1,076			1,084			1,108			1,176
Realized capital gains and losses:
Total other-than-temporary impairment losses		(250	)		(641	)		(539	)		(471	)		(725	)
Portion of loss recognized in other comprehensive income		(5	)		156			147			154			-
Net other-than-temporary impairment losses recognized in earnings		(255	)		(485	)		(392	)		(317	)		(725	)
Sales and other realized capital gains and losses		(93	)		452			(127	)		645			366
Total realized capital gains and losses		(348	)		(33	)		(519	)		328			(359	)
Total revenues		7,749			8,058			7,582			8,490			7,883
Costs and expenses
Property-liability insurance claims and claims expense		4,792			4,451			4,573			5,002			4,720
Life and annuity contract benefits		442			441			382			407			387
Interest credited to contractholder funds		463			490			496			561			579
Amortization of deferred policy acquisition costs		1,014			1,105			1,023			1,229			1,397
Operating costs and expenses		829			760			744			702			801
Restructuring and related charges		11			18			35			32			45
Interest expense		92			101			106			97			88
Total costs and expenses		7,643			7,366			7,359			8,030			8,017
Gain on disposition of operations		1			1			2			1			3
Income (loss) from operations before income tax (benefit) expense		107			693			225			461			(131	)
Income tax (benefit) expense		(13	)		175			4			72			143
Net income (loss)	$	120		$	518		$	221		$	389		$	(274	)
Earnings per share: (2)
Net income (loss) per share - Basic	$	0.22		$	0.96		$	0.41		$	0.72		$	(0.51	)
Weighted average shares - Basic		540.5			539.9			539.9			539.8			538.9
Net income (loss) per share - Diluted	$	0.22		$	0.96		$	0.41		$	0.72		$	(0.51	)
Weighted average shares - Diluted		541.8			542.1			541.5			540.6			538.9
Cash dividends declared per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20

(1)Income tax expense for the three months ended March 31, 2009 includes expense of $254 million attributable to an increase in the valuation allowance relating to the deferred tax asset on capital losses recorded in the first quarter of 2009.  This valuation allowance was released in connection with the adoption of new OTTI accounting guidance on April 1, 2009; however, the release was recorded as an increase to retained income and therefore did not reverse the amount recorded in income tax expense.

(2)As a result of the net loss for the three months ended March 31, 2009, weighted average dilutive potential common shares outstanding resulting from stock options of 0.6 million were not included in the computation of diluted earnings per share since inclusion of these securities would have an anti-dilutive effect.

1

THE ALLSTATE CORPORATION

CONTRIBUTION TO INCOME

($ in millions, except per share data)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
Contribution to income
Operating income before the impact of restructuring and related charges	$	382		$	604		$	561		$	318		$	483
Restructuring and related charges, after-tax		(7	)		(12	)		(23	)		(21	)		(29	)
Operating income *		375			592			538			297			454
Realized capital gains and losses, after-tax		(226	)		(22	)		(336	)		218			(488	)
DAC and DSI (amortization) accretion relating to realized capital gains and losses, after-tax		(2	)		(45	)		18			(131	)		(19	)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		(18	)		-			-			-			(224	)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(10	)		(7	)		-			4			1
Gain on disposition of operations, after-tax		1			-			1			1			2
Net income (loss)	$	120		$	518		$	221		$	389		$	(274	)
Income per share - Diluted(1)
Operating income before the impact of restructuring and related charges	$	0.70		$	1.11		$	1.04		$	0.59		$	0.90
Restructuring and related charges, after-tax		(0.01	)		(0.02	)		(0.05	)		(0.04	)		(0.06	)
Operating income		0.69			1.09			0.99			0.55			0.84
Realized capital gains and losses, after-tax		(0.42	)		(0.04	)		(0.62	)		0.40			(0.90	)
DAC and DSI (amortization) accretion relating to realized capital gains and losses, after-tax		-			(0.08	)		0.04			(0.24	)		(0.03	)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		(0.03	)		-			-			-			(0.42	)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(0.02	)		(0.01	)		-			0.01			-
Gain on disposition of operations, after-tax		-			-			-			-			-
Net income (loss)	$	0.22		$	0.96		$	0.41		$	0.72		$	(0.51	)
Weighted average shares - Diluted		541.8			542.1			541.5			540.6			538.9

(1)As a result of the net loss for the three months ended March 31, 2009, weighted average dilutive potential common shares outstanding resulting from stock options of 0.6 million, were not included in the computation of diluted earnings per share since inclusion of these securities would have an anti-dilutive effect.

2

THE ALLSTATE CORPORATION

REVENUES

($ in millions)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
Property-Liability
Property-liability insurance premiums	$	6,503		$	6,517		$	6,535		$	6,560		$	6,582
Net investment income		304			324			326			334			344
Realized capital gains and losses		(190	)		235			(290	)		201			(314	)
Total Property-Liability revenues		6,617			7,076			6,571			7,095			6,612
Allstate Financial
Life and annuity premiums and contract charges		544			498			482			494			484
Net investment income		731			737			744			764			819
Realized capital gains and losses		(162	)		(275	)		(234	)		121			(43	)
Total Allstate Financial revenues		1,113			960			992			1,379			1,260
Corporate and Other
Service fees (1)		3			2			3			1			3
Net investment income		15			15			14			10			13
Realized capital gains and losses		4			7			5			6			(2	)
Total Corporate and Other revenues before reclassification of services fees		22			24			22			17			14
Reclassification of service fees (1)		(3	)		(2	)		(3	)		(1	)		(3	)
Total Corporate and Other revenues		19			22			19			16			11
Consolidated revenues	$	7,749		$	8,058		$	7,582		$	8,490		$	7,883

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

3

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in millions)

		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Assets
Investments
Fixed income securities, at fair value
(amortized cost $82,486, $81,243, $81,367, $79,890 and $77,322)	$	81,284	$	78,766	$	78,561	$	72,766	$	68,438
Equity securities, at fair value
(cost $3,436, $4,845, $4,274, $3,483 and $2,947)		3,807		5,024		4,603		3,297		2,410
Mortgage loans		7,639		7,935		8,853		9,406		9,710
Limited partnership interests		2,802		2,744		2,770		2,464		2,482
Short-term, at fair value
(amortized cost $2,482, $3,056, $3,470, $6,070 and $8,124)		2,482		3,056		3,470		6,070		8,125
Other		2,209		2,308		2,369		2,455		2,708
Total investments		100,223		99,833		100,626		96,458		93,873
Cash		704		612		727		667		837
Premium installment receivables, net		4,823		4,839		4,970		4,794		4,766
Deferred policy acquisition costs		5,186		5,470		6,916		8,228		8,379
Reinsurance recoverables, net (1)		6,415		6,355		6,460		6,621		6,651
Accrued investment income		904		864		901		859		906
Deferred income taxes		1,440		1,870		1,520		2,710		3,486
Property and equipment, net		954		990		1,013		1,031		1,044
Goodwill		874		875		874		874		874
Other assets		1,804		1,872		2,471		2,656		2,180
Separate Accounts		9,059		9,072		9,026		8,193		7,375
Total assets	$	132,386	$	132,652	$	135,504	$	133,091	$	130,371

		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Liabilities
Reserve for property-liability insurance claims and claims expense	$	19,420	$	19,167	$	19,176	$	19,271	$	19,124
Reserve for life-contingent contract benefits		13,052		12,910		12,849		12,835		12,669
Contractholder funds		51,027		52,582		53,336		53,999		56,621
Unearned premiums		9,575		9,822		10,069		9,755		9,685
Claim payments outstanding		763		742		772		813		629
Other liabilities and accrued expenses		5,992		5,726		6,081		6,469		6,338
Long-term debt		5,910		5,910		6,661		6,658		5,659
Separate Accounts		9,059		9,072		9,026		8,193		7,375
Total liabilities		114,798		115,931		117,970		117,993		118,100
Equity
Common stock, 538 million, 537 million, 536 million, 536 million and 536 million shares outstanding		9		9		9		9		9
Additional capital paid-in		3,152		3,172		3,160		3,144		3,129
Retained income		31,514		31,492		31,083		30,969		29,825
Deferred ESOP expense		(44)		(47)		(47)		(47)		(46)
Treasury stock, at cost (362 million, 363 million, 364 million, 364 million and 364 million shares)		(15,782)		(15,828)		(15,832)		(15,835)		(15,836)
Accumulated other comprehensive income:
Unrealized net capital gains and losses:
Unrealized net capital losses on fixed income securities with other-than-temporary impairment		(384)		(441)		(411)		(380)		-
Other unrealized net capital gains and losses		(172)		(1,072)		(1,218)		(4,374)		(6,227)
Unrealized adjustment to DAC, DSI and insurance reserves		472		643		1,741		2,642		2,460
Total unrealized net capital gains and losses		(84)		(870)		112		(2,112)		(3,767)
Unrealized foreign currency translation adjustments		60		46		42		17		(3)
Unrecognized pension and other postretirement benefit cost		(1,265)		(1,282)		(1,022)		(1,077)		(1,069)
Total accumulated other comprehensive loss		(1,289)		(2,106)		(868)		(3,172)		(4,839)
Total shareholders’ equity		17,560		16,692		17,505		15,068		12,242
Noncontrolling interest		28		29		29		30		29
Total equity		17,588		16,721		17,534		15,098		12,271
Total liabilities and equity	$	132,386	$	132,652	$	135,504	$	133,091	$	130,371

(1)       Reinsurance recoverables of unpaid losses related to Property-Liability were $2,162 million, $2,139 million, $2,140 million, $2,162 million and $2,205 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.

4

THE ALLSTATE CORPORATION

BOOK VALUE PER SHARE

($ in millions, except per share data)

		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Book value per share
Numerator:
Shareholders’ equity	$	17,560	$	16,692	$	17,505	$	15,068	$	12,242
Denominator:
Shares outstanding and dilutive potential shares outstanding		544.3		541.3		542.1		540.6		540.5
Book value per share	$	32.26	$	30.84	$	32.29	$	27.87	$	22.65
Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities *
Numerator:
Shareholders’ equity	$	17,560	$	16,692	$	17,505	$	15,068	$	12,242
Unrealized net capital gains and losses on fixed income securities		(309)		(967)		(81)		(1,988)		(3,314)
Adjusted shareholders’ equity	$	17,869	$	17,659	$	17,586	$	17,056	$	15,556
Denominator:
Shares outstanding and dilutive potential shares outstanding		544.3		541.3		542.1		540.6		540.5
Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities	$	32.83	$	32.62	$	32.44	$	31.55	$	28.78

5

THE ALLSTATE CORPORATION

RETURN ON SHAREHOLDERS’ EQUITY

($ in millions)

		Twelve months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
Return on Shareholders’ Equity
Numerator:
Net income (loss) (1)	$	1,248		$	854		$	(793)		$	(1,937)		$	(2,301)
Denominator:
Beginning shareholders’ equity	$	12,242		$	12,641		$	16,938		$	19,709		$	20,303
Ending shareholders’ equity		17,560			16,692			17,505			15,068			12,242
Average shareholders’ equity (2)	$	14,901		$	14,667		$	17,222		$	17,389		$	16,273
Return on shareholders’ equity		8.4	%		5.8	%		(4.6)	%		(11.1)	%		(14.1)	%
Operating Income Return on Shareholders’ Equity *
Numerator:
Operating income (1)	$	1,802		$	1,881		$	1,807		$	1,079		$	1,465
Denominator:
Beginning shareholders’ equity	$	12,242		$	12,641		$	16,938		$	19,709		$	20,303
Unrealized net capital gains and losses		(3,767)			(3,738)			(1,475)			(274)			(280)
Adjusted beginning shareholders’ equity		16,009			16,379			18,413			19,983			20,583
Ending shareholders’ equity		17,560			16,692			17,505			15,068			12,242
Unrealized net capital gains and losses		(84)			(870)			112			(2,112)			(3,767)
Adjusted ending shareholders’ equity		17,644			17,562			17,393			17,180			16,009
Average adjusted shareholders’ equity (2)	$	16,827		$	16,971		$	17,903		$	18,582		$	18,296
Operating income return on shareholders’ equity		10.7	%		11.1	%		10.1	%		5.8	%		8.0	%

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

6

THE ALLSTATE CORPORATION

DEBT TO CAPITAL

($ in millions)

		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
Debt
Long-term debt	$	5,910		$	5,910		$	6,661		$	6,658		$	5,659
Capital resources
Debt	$	5,910		$	5,910		$	6,661		$	6,658		$	5,659
Shareholders’ equity
Common stock		9			9			9			9			9
Additional capital paid-in		3,152			3,172			3,160			3,144			3,129
Retained income		31,514			31,492			31,083			30,969			29,825
Deferred ESOP expense		(44)			(47)			(47)			(47)			(46)
Treasury stock		(15,782)			(15,828)			(15,832)			(15,835)			(15,836)
Unrealized net capital gains and losses		(84)			(870)			112			(2,112)			(3,767)
Unrealized foreign currency translation adjustments		60			46			42			17			(3)
Unrecognized pension and other postretirement benefit cost		(1,265)			(1,282)			(1,022)			(1,077)			(1,069)
Total shareholders’ equity		17,560			16,692			17,505			15,068			12,242
Total capital resources	$	23,470		$	22,602		$	24,166		$	21,726		$	17,901
Ratio of debt to shareholders’ equity		33.7	%		35.4	%		38.1	%		44.2	%		46.2	%
Ratio of debt to capital resources		25.2	%		26.1	%		27.6	%		30.6	%		31.6	%

7

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	120	$	518	$	221	$	389	$	(274)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and other non-cash items		16		(4)		(1)		(12)		(74)
Realized capital gains and losses		348		33		519		(328)		359
Gain on disposition of operations		(1)		(1)		(2)		(1)		(3)
Interest credited to contractholder funds		463		490		496		561		579
Changes in:
Policy benefit and other insurance reserves		188		(117)		(312)		96		(244)
Unearned premiums		(261)		(253)		289		47		(330)
Deferred policy acquisition costs		30		43		(77)		167		381
Premium installment receivables, net		24		134		(163)		(16)		71
Reinsurance recoverables, net		(72)		16		32		(52)		(81)
Income taxes		73		485		(184)		(84)		1,443
Other operating assets and liabilities		36		(558)		215		193		(305)
Net cash provided by operating activities		964		786		1,033		960		1,522
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales
Fixed income securities		4,930		5,261		7,242		4,373		4,483
Equity securities		1,990		2,258		1,089		1,675		1,872
Limited partnership interests		146		76		79		60		154
Mortgage loans		3		200		(1)		129		12
Other investments		37		91		167		246		16
Investment collections
Fixed income securities		1,122		1,609		1,289		1,455		1,203
Mortgage loans		263		671		495		126		472
Other investments		18		18		34		34		31
Investment purchases
Fixed income securities		(7,099)		(6,879)		(10,270)		(6,999)		(5,425)
Equity securities		(556)		(2,505)		(1,784)		(2,274)		(1,933)
Limited partnership interests		(185)		(110)		(406)		(124)		(144)
Mortgage loans		(1)		(3)		(9)		(4)		(10)
Other investments		(43)		(10)		(13)		(41)		-
Change in short-term investments, net		411		544		2,270		2,460		707
Change in other investments, net		(49)		(196)		(64)		(32)		(48)
Disposition of operations		-		-		-		-		12
Purchases of property and equipment, net		(24)		(46)		(39)		(51)		(53)
Net cash provided by investing activities		963		979		79		1,033		1,349
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		-		-		3		1,000		-
Repayment of long-term debt		-		(751)		-		(1)		-
Contractholder fund deposits		828		898		802		1,152		1,298
Contractholder fund withdrawals		(2,569)		(1,921)		(1,749)		(4,159)		(3,577)
Dividends paid		(107)		(108)		(107)		(107)		(220)
Treasury stock purchases		(5)		(1)		-		-		(3)
Shares reissued under equity incentive plans, net		14		1		2		-		-
Excess tax benefits on share-based payment arrangements		(2)		1		-		-		(6)
Other		6		1		(3)		(48)		59
Net cash used in financing activities		(1,835)		(1,880)		(1,052)		(2,163)		(2,449)
NET INCREASE (DECREASE) IN CASH		92		(115)		60		(170)		422
CASH AT BEGINNING OF PERIOD		612		727		667		837		415
CASH AT END OF PERIOD	$	704	$	612	$	727	$	667	$	837

8

THE ALLSTATE CORPORATION

ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS

($ in millions)

		Change in Deferred Policy Acquisition Costs														Reconciliation of Deferred Policy
		For the three months ended March 31, 2010														Acquisition Costs as of March 31, 2010
								Amortization
								relating to		Amortization						DAC before				DAC after
								realized		deceleration		Effect of				impact of		Impact of		impact of
		Beginning		Acquisition		Amortization		capital		(acceleration)		unrealized		Ending		unrealized		unrealized		unrealized
		balance		costs		before		gains and		credited (charged)		capital gains		balance		capital gains		capital gains		capital gains
		Dec. 31, 2009		deferred		adjustments (1) (2)		losses (2)		to income (2)		and losses		March 31, 2010		and losses		and losses		and losses
Property-Liability	$	1,410	$	872	$	(925)	$	-	$	-	$	-	$	1,357	$	1,357	$	-	$	1,357
Allstate Financial:
Traditional life and accident and health		650		38		(29)		-		-		-		659		659		-		659
Interest-sensitive life		2,246		61		(44)		(2)		13		(65)		2,209		2,176		33		2,209
Fixed annuity		1,159		15		(25)		(1)		(1)		(191)		956		374		582		956
Other		5		-		-		-		-		-		5		5		-		5
Sub-total		4,060		114		(98)		(3)		12		(256)		3,829		3,214		615		3,829
Consolidated	$	5,470	$	986	$	(1,023)	$	(3)	$	12	$	(256)	$	5,186	$	4,571	$	615	$	5,186

		Change in Deferred Policy Acquisition Costs														Reconciliation of Deferred Policy
		For the three months ended March 31, 2009														Acquisition Costs as of March 31, 2009
								Amortization
								relating to		Amortization						DAC before				DAC after
								realized		deceleration		Effect of				impact of		Impact of		impact of
		Beginning		Acquisition		Amortization		capital		(acceleration)		unrealized		Ending		unrealized		unrealized		unrealized
		Balance		costs		before		gains and		credited (charged)		capital gains		balance		capital gains		capital gains		capital gains
		Dec. 31, 2008		deferred		adjustments (1) (2)		losses (2)		to income (2)		and losses		March 31, 2009		and losses		and losses		and losses
Property-Liability	$	1,453	$	900	$	(949)	$	-	$	-	$	-	$	1,404	$	1,404	$	-	$	1,404
Allstate Financial:
Traditional life and accident and health		595		34		(28)		-		-		-		601		601		-		601
Interest-sensitive life		2,449		47		(41)		-		12		(10)		2,457		2,111		346		2,457
Fixed annuity		4,037		30		(74)		(27)		(289)		233		3,910		780		3,130		3,910
Other		8		-		(1)		-		-		-		7		7		-		7
Sub-total		7,089		111		(144)		(27)		(277)		223		6,975		3,499		3,476		6,975
Consolidated	$	8,542	$	1,011	$	(1,093)	$	(27)	$	(277)	$	223	$	8,379	$	4,903	$	3,476	$	8,379

(1)	Amortization before adjustments reflects total DAC amortization before amortization/accretion related to realized capital gains and losses and amortization acceleration/deceleration charged/credited to income.
(2)	Included as a component of amortization of DAC on the Consolidated Statements of Operations.

9

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY RESULTS

($ in millions, except ratios)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Premiums written *	$	6,258	$	6,277	$	6,810	$	6,615	$	6,269
Decrease (increase) in unearned premium		245		248		(315)		(70)		337
Other		-		(8)		40		15		(24)
Premiums earned		6,503		6,517		6,535		6,560		6,582
Claims and claims expense		(4,792)		(4,451)		(4,573)		(5,002)		(4,720)
Amortization of deferred policy acquisition costs		(925)		(957)		(943)		(940)		(949)
Operating costs and expenses		(704)		(648)		(642)		(591)		(678)
Restructuring and related charges		(11)		(17)		(31)		(30)		(27)
Underwriting income (loss) *		71		444		346		(3)		208
Net investment income		304		324		326		334		344
Periodic settlements and accruals on non-hedge derivative instruments		(1)		(2)		(2)		(3)		(3)
Income tax expense on operations		(88)		(212)		(169)		(39)		(135)
Operating income		286		554		501		289		414
Realized capital gains and losses, after-tax		(123)		151		(188)		131		(316)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		2		1		2		2
Net income	$	164	$	707	$	314	$	422	$	100
Catastrophe losses	$	648	$	328	$	407	$	818	$	516
Operating ratios *
Claims and claims expense ratio		73.7		68.3		70.0		76.2		71.7
Expense ratio		25.2		24.9		24.7		23.8		25.1
Combined ratio		98.9		93.2		94.7		100.0		96.8
Combined ratio excluding the effect of catastrophes *		88.9		88.2		88.5		87.5		89.0
Effect of catastrophe losses on combined ratio *		10.0		5.0		6.2		12.5		7.8
Combined ratio		98.9		93.2		94.7		100.0		96.8
Combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”) *		89.1		88.1		88.0		87.2		88.9
Effect of catastrophe losses on combined ratio *		10.0		5.0		6.2		12.5		7.8
Effect of prior year reserve reestimates on combined ratio *		(0.4)		(0.4)		(0.7)		0.3		(0.8)
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		0.2		0.5		1.2		-		0.9
Combined ratio		98.9		93.2		94.7		100.0		96.8
Effect of restructuring and related charges on combined ratio *		0.2		0.3		0.5		0.5		0.4
Effect of Discontinued Lines and Coverages on combined ratio		0.1		0.1		0.3		-		0.1

10

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Property-Liability Underwriting Summary
Allstate Protection	$	75	$	449	$	363	$	1	$	214
Discontinued Lines and Coverages		(4)		(5)		(17)		(4)		(6)
Underwriting income (loss)	$	71	$	444	$	346	$	(3)	$	208
Allstate Protection Underwriting Summary
Premiums written	$	6,258	$	6,277	$	6,810	$	6,615	$	6,270
Premiums earned	$	6,503	$	6,517	$	6,535	$	6,560	$	6,583
Claims and claims expense		(4,790)		(4,448)		(4,557)		(5,000)		(4,717)
Amortization of deferred policy acquisition costs		(925)		(957)		(943)		(940)		(949)
Operating costs and expenses		(702)		(646)		(641)		(589)		(676)
Restructuring and related charges		(11)		(17)		(31)		(30)		(27)
Underwriting income	$	75	$	449	$	363	$	1	$	214
Catastrophe losses	$	648	$	328	$	407	$	818	$	516
Operating ratios
Claims and claims expense ratio		73.6		68.2		69.7		76.2		71.6
Expense ratio		25.2		24.9		24.7		23.8		25.1
Combined ratio		98.8		93.1		94.4		100.0		96.7
Effect of catastrophe losses on combined ratio		10.0		5.0		6.2		12.5		7.8
Effect of restructuring and related charges on combined ratio		0.2		0.3		0.5		0.5		0.4
Discontinued Lines and Coverages Underwriting Summary
Premiums written	$	-	$	-	$	-	$	-	$	(1)
Premiums earned	$	-	$	-	$	-	$	-	$	(1)
Claims and claims expense		(2)		(3)		(16)		(2)		(3)
Operating costs and expenses		(2)		(2)		(1)		(2)		(2)
Underwriting loss	$	(4)	$	(5)	$	(17)	$	(4)	$	(6)
Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio		0.1		0.1		0.3		-		0.1

11

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY PREMIUMS WRITTEN BY MARKET SEGMENT

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Allstate brand (1)
Standard auto	$	4,023	$	3,860	$	4,049	$	3,876	$	3,978
Non-standard auto		237		219		235		232		241
Auto		4,260		4,079		4,284		4,108		4,219
Involuntary auto		16		15		13		15		12
Commercial lines		131		128		132		147		143
Homeowners		1,189		1,359		1,573		1,532		1,171
Other personal lines		399		410		460		451		391
		5,995		5,991		6,462		6,253		5,936
Encompass brand
Standard auto		160		171		208		217		204
Non-standard auto		3		3		6		5		8
Auto		163		174		214		222		212
Involuntary auto		2		2		2		3		3
Homeowners		80		89		110		112		97
Other personal lines		18		21		22		25		22
		263		286		348		362		334
Allstate Protection		6,258		6,277		6,810		6,615		6,270
Discontinued Lines and Coverages		-		-		-		-		(1)
Property-Liability	$	6,258	$	6,277	$	6,810	$	6,615	$	6,269
Allstate Protection
Standard auto	$	4,183	$	4,031	$	4,257	$	4,093	$	4,182
Non-standard auto		240		222		241		237		249
Auto		4,423		4,253		4,498		4,330		4,431
Involuntary auto		18		17		15		18		15
Commercial lines		131		128		132		147		143
Homeowners		1,269		1,448		1,683		1,644		1,268
Other personal lines		417		431		482		476		413
	$	6,258	$	6,277	$	6,810	$	6,615	$	6,270

(1)Allstate brand premiums written, excluding Allstate Canada, by the direct channel totaled $185 million, $161 million, $169 million, $146 million and $146 million for the three months ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.  The direct channel includes call centers and the internet.

12

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION MARKET SEGMENT ANALYSIS

($ in millions)

		Three months ended March 31,
		2010		2009		2010		2009		2010		2009		2010		2009	2010	2009	2010	2009	2010	2009	2010	2009
																			Effect of				Effect of Pre-tax
										Incurred									Catastrophe Losses				Reserve Reestimates
		Premiums Earned				Incurred Losses				Catastrophe Losses				Expenses			Loss Ratio (2)		on the Loss Ratio		Expense Ratio		on the Combined Ratio
Allstate brand
Standard auto	$	3,943	$	3,917	$	2,739	$	2,696	$	28	$	63	$	985	$	960	69.4	68.8	0.7	1.6	25.0	24.5	(0.1)	(0.7)
Non-standard auto		230		237		158		162		1		2		56		56	68.7	68.4	0.4	0.8	24.3	23.6	(1.3)	(0.4)
Auto		4,173		4,154		2,897		2,858		29		65		1,041		1,016	69.4	68.8	0.7	1.6	25.0	24.5	(0.1)	(0.7)
Homeowners		1,416		1,417		1,239		1,172		525		390		337		341	87.5	82.7	37.1	27.5	23.8	24.1	(0.4)	(1.2)
Other personal lines (1)		592		610		376		403		43		47		173		184	63.5	66.1	7.3	7.7	29.2	30.1	(3.9)	0.8
Total Allstate brand		6,181		6,181		4,512		4,433		597		502		1,551		1,541	73.0	71.7	9.7	8.1	25.1	25.0	(0.6)	(0.7)
Encompass brand
Standard auto		194		247		149		183		2		2		51		67	76.8	74.1	1.0	0.8	26.3	27.1	5.2	(2.4)
Non-standard auto		4		9		4		6		-		-		1		3	100.0	66.7	-	-	25.0	33.3	-	-
Auto		198		256		153		189		2		2		52		70	77.3	73.8	1.0	0.8	26.2	27.4	5.1	(2.3)
Homeowners		100		118		103		73		46		12		29		34	103.0	61.9	46.0	10.2	29.0	28.8	(2.0)	(12.7)
Other personal lines (1)		24		28		22		22		3		-		6		7	91.7	78.6	12.5	-	25.0	25.0	4.2	14.3
Total Encompass brand		322		402		278		284		51		14		87		111	86.4	70.7	15.8	3.5	27.0	27.6	2.8	(4.2)
Allstate Protection	$	6,503	$	6,583	$	4,790	$	4,717	$	648	$	516	$	1,638	$	1,652	73.6	71.6	10.0	7.8	25.2	25.1	(0.4)	(0.9)

(1)     Other personal lines includes commercial, condominium, renters, involuntary auto and other personal lines.

(2)     Ratios are calculated using the premiums earned for the respective line of business.

13

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION HISTORICAL MARKET SEGMENT ANALYSIS

($ in millions)

		Three months ended					Three months ended						Three months ended					Three months ended
		March 31, 2010					December 31, 2009						September 30, 2009					June 30, 2009
				Effect of					Effect of						Effect of					Effect of
		Premiums	Loss	CAT Losses	Expense		Premiums	Loss	CAT Losses		Expense		Premiums	Loss	CAT Losses	Expense		Premiums	Loss	CAT Losses	Expense
		Earned	Ratio	on Loss Ratio	Ratio		Earned	Ratio	on Loss Ratio		Ratio		Earned	Ratio	on Loss Ratio	Ratio		Earned	Ratio	on Loss Ratio	Ratio
Allstate brand
Standard auto	$	3,943	69.4	0.7	25.0	$	3,944	69.2	(0.3	)	24.5	$	3,946	68.6	1.3	24.1	$	3,928	70.7	2.1	24.2
Non-standard auto		230	68.7	0.4	24.3		231	69.3	0.4		25.1		231	63.6	0.4	25.6		240	67.1	1.3	23.7
Auto		4,173	69.4	0.7	25.0		4,175	69.2	(0.3	)	24.5		4,177	68.4	1.3	24.1		4,168	70.6	2.1	24.1
Homeowners		1,416	87.5	37.1	23.8		1,411	65.1	20.6		23.9		1,396	75.4	22.3	22.9		1,409	95.1	45.8	21.2
Other personal lines (1)		592	63.5	7.3	29.2		591	66.7	6.6		28.6		601	64.1	4.0	31.6		600	72.5	9.8	25.3
Total Allstate brand		6,181	73.0	9.7	25.1		6,177	68.0	5.1		24.8		6,174	69.5	6.3	24.6		6,177	76.3	12.8	23.6
Encompass brand
Standard auto		194	76.8	1.0	26.3		205	77.5	(0.5	)	25.4		221	76.9	0.5	25.4		234	73.5	0.4	26.1
Non-standard auto		4	100.0	-	25.0		5	80.0	-		40.0		6	66.7	-	50.0		7	85.7	-	28.6
Auto		198	77.3	1.0	26.2		210	77.6	(0.5	)	25.7		227	76.6	0.4	26.0		241	73.9	0.4	26.1
Homeowners		100	103.0	46.0	29.0		104	57.7	9.6		29.8		108	67.6	15.7	29.6		114	76.3	22.8	28.1
Other personal lines (1)		24	91.7	12.5	25.0		26	88.4	3.8		23.1		26	65.4	—	26.9		28	71.4	3.6	25.0
Total Encompass brand		322	86.4	15.8	27.0		340	72.3	2.9		26.8		361	73.1	5.0	27.2		383	74.4	7.3	26.6
Allstate Protection	$	6,503	73.6	10.0	25.2	$	6,517	68.2	5.0		24.9	$	6,535	69.7	6.2	24.7	$	6,560	76.2	12.5	23.8
		Three months ended					Three months ended						Three months ended					Three months ended
		March 31, 2009					December 31, 2008						September 30, 2008					June 30, 2008
				Effect of					Effect of						Effect of					Effect of
		Premiums	Loss	CAT Losses	Expense		Premiums	Loss	CAT Losses		Expense		Premiums	Loss	CAT Losses	Expense		Premiums	Loss	CAT Losses	Expense
		Earned	Ratio	on Loss Ratio	Ratio		Earned	Ratio	on Loss Ratio		Ratio		Earned	Ratio	on Loss Ratio	Ratio		Earned	Ratio	on Loss Ratio	Ratio
Allstate brand
Standard auto	$	3,917	68.8	1.6	24.5	$	3,939	73.3	0.6		26.1	$	3,993	66.7	1.9	24.3	$	4,014	67.1	2.1	23.5
Non-standard auto		237	68.4	0.8	23.6		246	67.1	0.4		24.8		261	57.1	1.5	24.1		270	60.0	1.1	22.6
Auto		4,154	68.8	1.6	24.5		4,185	72.9	0.6		26.0		4,254	66.1	1.9	24.3		4,284	66.6	2.0	23.5
Homeowners		1,417	82.7	27.5	24.1		1,459	59.9	11.6		24.7		1,453	158.1	106.2	23.2		1,420	86.5	38.0	21.2
Other personal lines (1)		610	66.1	7.7	30.1		606	66.8	8.9		34.7		643	77.0	17.1	28.3		593	63.1	5.9	26.8
Total Allstate brand		6,181	71.7	8.1	25.0		6,250	69.3	4.0		26.5		6,350	88.2	27.3	24.5		6,297	70.8	10.5	23.2
Encompass brand
Standard auto		247	74.1	0.8	27.1		261	78.1	0.4		28.0		272	71.0	1.1	27.2		278	65.8	1.8	27.7
Non-standard auto		9	66.7	-	33.3		10	130.0	-		50.0		9	77.8	-	33.3		12	83.3	-	25.0
Auto		256	73.8	0.8	27.4		271	80.1	0.4		28.8		281	71.2	1.1	27.4		290	66.5	1.7	27.6
Homeowners		118	61.9	10.2	28.8		117	53.0	6.0		33.3		124	113.7	62.9	30.7		129	72.9	23.3	31.8
Other personal lines (1)		28	78.6	-	25.0		30	80.0	16.7		26.7		30	66.6	6.7	26.7		34	88.2	5.9	26.5
Total Encompass brand		402	70.7	3.5	27.6		418	72.5	3.1		29.9		435	83.0	19.1	28.3		453	70.0	8.2	28.7
Allstate Protection	$	6,583	71.6	7.8	25.1	$	6,668	69.6	3.9		26.7	$	6,785	87.9	26.8	24.7	$	6,750	70.7	10.3	23.7

(1)    Other personal lines includes commercial, condominium, renters, involuntary auto and other personal lines.

14

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

HISTORICAL IMPACT OF NET RATE CHANGES APPROVED ON PREMIUMS WRITTEN

	Three months ended				Three months ended			Three months ended				Three months ended
	March 31, 2010 (1)				December 31, 2009			September 30, 2009				June 30, 2009
	Number of			State	Number of		State	Number of			State	Number of			State
	States		Countrywide (%) (4)	Specific (%) (5)	States	Countrywide (%) (4)	Specific (%) (5)	States		Countrywide (%) (4)	Specific (%) (5)	States		Countrywide (%) (4)	Specific (%) (5)
Allstate brand
Standard auto (2)	8		0.3	2.9	15	1.5	5.5	15		1.4	6.5	12		0.8	4.3
Non-standard auto	1		0.9	22.1	4	1.1	9.4	4		1.2	5.5	2		0.1	3.2
Auto	9		0.3	3.3	17	1.5	5.6	17		1.4	6.4	13		0.8	4.3
Homeowners (3)	6		0.9	7.4	22	1.9	6.5	19	(6)	2.4	6.9	16		1.7	13.3
Encompass brand
Standard auto	6		1.5	7.1	11	1.3	9.5	13		1.6	9.6	8		1.0	8.3
Non-standard auto	-		-	-	-	-	-	-		-	-	-		-	-
Auto	6		1.4	7.1	11	1.3	9.5	13		1.6	9.6	8		0.9	8.3
Homeowners	5		0.7	5.2	10	0.6	7.9	17		2.0	4.8	10	(6)	0.5	5.7
	Three months ended				Three months ended			Three months ended				Three months ended
	March 31, 2009				December 31, 2008			September 30, 2008				June 30, 2008
	Number of			State	Number of		State	Number of			State	Number of			State
	States		Countrywide (%) (4)	Specific (%) (5)	States	Countrywide (%) (4)	Specific (%) (5)	States		Countrywide (%) (4)	Specific (%) (5)	States		Countrywide (%) (4)	Specific (%) (5)
Allstate brand
Standard auto (2)	18	(6)	0.9	3.3	8	0.2	4.1	12		0.6	3.8	15		(0.4)	(1.2)
Non-standard auto	4		0.1	1.6	2	(0.1)	(16.5)	2		-	0.6	5	(6)	(0.2)	(7.7)
Auto	19	(6)	0.9	3.3	9	0.2	3.9	13		0.6	3.8	19	(6)	(0.4)	(1.2)
Homeowners (3)	14		2.5	7.4	4	0.2	3.6	17	(6)	(3.1)	(11.5)	16		0.7	2.3
Encompass brand
Standard auto	24		3.7	8.1	4	0.1	6.7	14		1.3	11.0	9		0.8	3.4
Non-standard auto	1		0.9	31.7	1	0.9	49.5	3		4.0	20.7	-		-	-
Auto	25		3.6	8.1	5	0.2	9.1	16		1.5	11.9	9		0.8	3.4
Homeowners	18		1.6	6.7	4	1.2	13.1	12		0.5	2.3	13	(6)	0.9	4.5

(1)	Rate changes include changes approved based on our net cost of reinsurance. These rate changes do not reflect initial rates filed for insurance subsidiaries initially writing business. Based on historical premiums written in those states, rate changes approved for the three month period ending March 31, 2010 are estimated to total $121 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 the state.
(2)	Impacts of Allstate brand standard auto effective rate changes as a percentage of total countrywide prior year-end premiums written were 1.5%, 1.6%, 0.5%, 0.6%, 0.7%, 0.1%, 0.8% and (0.6)% for the three months ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008 and June 30, 2008, respectively.
(3)	Impacts of Allstate brand homeowners effective rate changes as a percentage of total countrywide prior year-end premiums written were 1.5%, 1.5%, 2.4%, 1.7%, 1.7%, 0.2%, (2.6)% and 0.8% for the three months ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008 and June 30, 2008, respectively.
(4)	Represents the impact in the states where rate changes were approved during the year as a percentage of total countrywide prior year-end premiums written.
(5)	Represents the impact in the states where rate changes were approved during the year as a percentage of its respective total prior year-end premiums written in those states.
(6)	Includes Washington, D.C.

15

THE ALLSTATE CORPORATION

STANDARD AUTO PROFITABILITY MEASURES

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,		March 31,
		2010			2009			2009			2009		2009
Standard auto
($ in millions)
Net premiums written
Allstate brand	$	4,023		$	3,860		$	4,049		$	3,876	$	3,978
Encompass brand		160			171			208			217		204
		4,183			4,031			4,257			4,093		4,182
Net premiums earned
Allstate brand	$	3,943		$	3,944		$	3,946		$	3,928	$	3,917
Encompass brand		194			205			221			234		247
		4,137			4,149			4,167			4,162		4,164
Incurred losses
Allstate brand	$	2,739		$	2,729		$	2,708		$	2,779	$	2,696
Encompass brand		149			159			170			172		183
		2,888			2,888			2,878			2,951		2,879
Expenses
Allstate brand	$	985		$	965		$	949		$	949	$	960
Encompass brand		51			52			56			61		67
		1,036			1,017			1,005			1,010		1,027
Underwriting Income
Allstate brand	$	219		$	250		$	289		$	200	$	261
Encompass brand		(6	)		(6	)		(5	)		1		(3	)
		213			244			284			201		258
Loss ratio
Allstate brand		69.4			69.2			68.6			70.7		68.8
Encompass brand		76.8			77.5			76.9			73.5		74.1
Allstate Protection		69.8			69.6			69.1			70.9		69.1
Expense ratio
Allstate brand		25.0			24.5			24.1			24.2		24.5
Encompass brand		26.3			25.4			25.4			26.1		27.1
Allstate Protection		25.1			24.5			24.1			24.3		24.7
Combined ratio
Allstate brand		94.4			93.7			92.7			94.9		93.3
Encompass brand		103.1			102.9			102.3			99.6		101.2
Allstate Protection		94.9			94.1			93.2			95.2		93.8
Effect of catastrophe losses on loss ratio
Allstate brand		0.7			(0.3	)		1.3			2.1		1.6
Encompass brand		1.0			(0.5	)		0.5			0.4		0.8
Allstate brand standard auto domestic operating measures (1)
		March 31,			Dec. 31,			Sept. 30,			June 30,		March 31,
		2010			2009			2009			2009		2009
Operating measures (2)
Policies in force (in thousands)		17,581			17,744			17,774			17,836		17,843
New issued applications (in thousands)		464			488			524			496		521
Average premium - gross written ($)		443			441			435			430		430
Average premium - net earned ($)		430			428			426			425		424
Renewal ratio (%)		88.8			88.8			89.1			89.0		88.6
Loss trends
(% change year-over-year)
Bodily injury claim frequency		5.4			14.4			19.6			13.6		5.5
Property damage claim frequency		(0.1	)		7.6			10.7			5.1		1.6

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

(2)   Refer to the Allstate Brand Domestic Operating Measures and Statistics table for descriptions of these measures.

16

THE ALLSTATE CORPORATION

NON-STANDARD AUTO PROFITABILITY MEASURES

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Non-standard auto
($ in millions)
Net premiums written
Allstate brand	$	237	$	219	$	235	$	232	$	241
Encompass brand		3		3		6		5		8
		240		222		241		237		249
Net premiums earned
Allstate brand	$	230	$	231	$	231	$	240	$	237
Encompass brand		4		5		6		7		9
		234		236		237		247		246
Incurred losses
Allstate brand	$	158	$	160	$	147	$	161	$	162
Encompass brand		4		4		4		6		6
		162		164		151		167		168
Expenses
Allstate brand	$	56	$	58	$	59	$	57	$	56
Encompass brand		1		2		3		2		3
		57		60		62		59		59
Underwriting Income
Allstate brand	$	16	$	13	$	25	$	22	$	19
Encompass brand		(1)		(1)		(1)		(1)		-
		15		12		24		21		19
Loss ratio
Allstate brand		68.7		69.3		63.6		67.1		68.4
Encompass brand		100.0		80.0		66.7		85.7		66.7
Allstate Protection		69.2		69.5		63.7		67.6		68.3
Expense ratio
Allstate brand		24.3		25.1		25.6		23.7		23.6
Encompass brand		25.0		40.0		50.0		28.6		33.3
Allstate Protection		24.4		25.4		26.2		23.9		24.0
Combined ratio
Allstate brand		93.0		94.4		89.2		90.8		92.0
Encompass brand		125.0		120.0		116.7		114.3		100.0
Allstate Protection		93.6		94.9		89.9		91.5		92.3
Effect of catastrophe losses on loss ratio
Allstate brand		0.4		0.4		0.4		1.3		0.8
Encompass brand		-		-		-		-		-
Allstate brand non-standard auto domestic operating measures (1)
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Operating measures (2)
Policies in force (in thousands)		724		719		733		743		750
New issued applications (in thousands)		99		84		91		86		102
Average premium - gross written ($)		619		625		613		612		615
Average premium - net earned ($)		571		574		578		583		591
Renewal ratio (%)		71.8		72.4		72.6		73.3		71.6
Loss trends
(% change year-over-year)
Bodily injury claim frequency		6.6		16.7		29.5		26.3		15.9
Property damage claim frequency		3.1		9.4		16.5		10.2		7.1

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

(2)Refer to the Allstate Brand Domestic Operating Measures and Statistics page for descriptions of these measures.

17

THE ALLSTATE CORPORATION

AUTO PROFITABILITY MEASURES

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Auto
($ in millions)
Net premiums written
Allstate brand	$	4,260	$	4,079	$	4,284	$	4,108	$	4,219
Encompass brand		163		174		214		222		212
		4,423		4,253		4,498		4,330		4,431
Net premiums earned
Allstate brand	$	4,173	$	4,175	$	4,177	$	4,168	$	4,154
Encompass brand		198		210		227		241		256
		4,371		4,385		4,404		4,409		4,410
Incurred losses
Allstate brand	$	2,897	$	2,889	$	2,855	$	2,940	$	2,858
Encompass brand		153		163		174		178		189
		3,050		3,052		3,029		3,118		3,047
Expenses
Allstate brand	$	1,041	$	1,023	$	1,008	$	1,006	$	1,016
Encompass brand		52		54		59		63		70
		1,093		1,077		1,067		1,069		1,086
Underwriting Income
Allstate brand	$	235	$	263	$	314	$	222	$	280
Encompass brand		(7)		(7)		(6)		-		(3)
		228		256		308		222		277
Loss ratio
Allstate brand		69.4		69.2		68.4		70.6		68.8
Encompass brand		77.3		77.6		76.6		73.9		73.8
Allstate Protection		69.8		69.6		68.8		70.7		69.1
Expense ratio
Allstate brand		25.0		24.5		24.1		24.1		24.5
Encompass brand		26.2		25.7		26.0		26.1		27.4
Allstate Protection		25.0		24.6		24.2		24.3		24.6
Combined ratio
Allstate brand		94.4		93.7		92.5		94.7		93.3
Encompass brand		103.5		103.3		102.6		100.0		101.2
Allstate Protection		94.8		94.2		93.0		95.0		93.7
Effect of catastrophe losses on loss ratio
Allstate brand		0.7		(0.3)		1.3		2.1		1.6
Encompass brand		1.0		(0.5)		0.4		0.4		0.8
Effect of pre-tax reserve reestimates on combined ratio*
Allstate brand		(0.1)		(0.6)		0.1		(0.2)		(0.7)
Encompass brand		5.1		(1.0)		3.1		1.7		(2.3)
Allstate brand auto domestic operating measures (1)
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Operating measures (2)
Policies in force (in thousands)		18,305		18,463		18,507		18,579		18,593
New issued applications (in thousands)		563		572		615		582		623
Average premium - gross written ($)		451		449		443		438		438
Average premium - net earned ($)		436		434		432		431		431
Renewal ratio (%)		88.0		88.1		88.3		88.3		87.8
Loss trends
(% change year-over-year)
Bodily injury claim frequency		5.4		14.4		20.1		14.2		5.9
Property damage claim frequency		-		7.7		10.9		5.3		1.7
Paid severity - bodily injury		(1.3)		(4.9)		(0.9)		0.9		2.1
Paid severity - property damage		0.4		0.1		(1.0)		0.5		(2.4)

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

(2)Refer to the Allstate Brand Domestic Operating Measures and Statistics page for descriptions of these measures.

18

THE ALLSTATE CORPORATION

HOMEOWNERS PROFITABILITY MEASURES

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Homeowners
($ in millions)
Net premiums written
Allstate brand	$	1,189	$	1,359	$	1,573	$	1,532	$	1,171
Encompass brand		80		89		110		112		97
		1,269		1,448		1,683		1,644		1,268
Net premiums earned
Allstate brand	$	1,416	$	1,411	$	1,396	$	1,409	$	1,417
Encompass brand		100		104		108		114		118
		1,516		1,515		1,504		1,523		1,535
Incurred losses
Allstate brand	$	1,239	$	919	$	1,053	$	1,340	$	1,172
Encompass brand		103		60		73		87		73
		1,342		979		1,126		1,427		1,245
Expenses
Allstate brand	$	337	$	337	$	319	$	299	$	341
Encompass brand		29		31		32		32		34
		366		368		351		331		375
Underwriting Income
Allstate brand	$	(160)	$	155	$	24	$	(230)	$	(96)
Encompass brand		(32)		13		3		(5)		11
		(192)		168		27		(235)		(85)
Loss ratio
Allstate brand		87.5		65.1		75.4		95.1		82.7
Encompass brand		103.0		57.7		67.6		76.3		61.9
Allstate Protection		88.5		64.6		74.9		93.7		81.1
Expense ratio
Allstate brand		23.8		23.9		22.9		21.2		24.1
Encompass brand		29.0		29.8		29.6		28.1		28.8
Allstate Protection		24.2		24.3		23.3		21.7		24.4
Combined ratio
Allstate brand		111.3		89.0		98.3		116.3		106.8
Encompass brand		132.0		87.5		97.2		104.4		90.7
Allstate Protection		112.7		88.9		98.2		115.4		105.5
Effect of catastrophe losses on loss ratio
Allstate brand		37.1		20.6		22.3		45.8		27.5
Encompass brand		46.0		9.6		15.7		22.8		10.2
Effect of pre-tax reserve reestimates on combined ratio
Allstate brand		(0.4)		(3.3)		(5.2)		(0.9)		(1.2)
Encompass brand		(2.0)		(3.8)		(1.9)		1.8		(12.7)
Allstate brand homeowners domestic operating measures (1)
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Operating measures (2)
Policies in force (in thousands)		6,886		6,973		7,027		7,105		7,181
New issued applications (in thousands)		119		136		148		145		127
Average premium - gross written ($)		921		899		889		879		861
Average premium - net earned ($)		795		785		771		768		771
Renewal ratio (%)		88.0		88.4		88.5		88.0		87.5
Loss trends
(% change year-over-year)
Claim frequency excluding catastrophe losses		5.1		13.9		13.5		3.9		5.1
Claim severity excluding catastrophe losses		(2.1)		(8.5)		9.0		7.0		3.2

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

(2)Refer to the Allstate Brand Domestic Operating Measures and Statistics page for descriptions of these measures.

19

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

ALLSTATE BRAND DOMESTIC OPERATING MEASURES AND STATISTICS (1)

	Three months ended
		March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
		2010	2009	2009	2009	2009
Policies in Force (2)
(in thousands)
Standard auto		17,581	17,744	17,774	17,836	17,843
Non-standard auto		724	719	733	743	750
Auto		18,305	18,463	18,507	18,579	18,593
Homeowners		6,886	6,973	7,027	7,105	7,181
New Issued Applications (3)
(in thousands)
Standard auto		464	488	524	496	521
Non-standard auto		99	84	91	86	102
Auto		563	572	615	582	623
Homeowners		119	136	148	145	127
Average Premium - Gross Written ($) (4)
Standard auto		443	441	435	430	430
Non-standard auto		619	625	613	612	615
Auto		451	449	443	438	438
Homeowners		921	899	889	879	861
Average Premium - Net Earned ($) (5)
Standard auto		430	428	426	425	424
Non-standard auto		571	574	578	583	591
Auto		436	434	432	431	431
Homeowners		795	785	771	768	771
Renewal Ratio (%) (6)
Standard auto		88.8	88.8	89.1	89.0	88.6
Non-standard auto		71.8	72.4	72.6	73.3	71.6
Auto		88.0	88.1	88.3	88.3	87.8
Homeowners		88.0	88.4	88.5	88.0	87.5
Bodily Injury Claim Frequency
(% change year-over-year)
Standard auto		5.4	14.4	19.6	13.6	5.5
Non-standard auto		6.6	16.7	29.5	26.3	15.9
Auto		5.4	14.4	20.1	14.2	5.9
Property Damage Claim Frequency
(% change year-over-year)
Standard auto		(0.1)	7.6	10.7	5.1	1.6
Non-standard auto		3.1	9.4	16.5	10.2	7.1
Auto		-	7.7	10.9	5.3	1.7
Auto Paid Severity
(% change year-over-year)
Bodily injury		(1.3)	(4.9)	(0.9)	0.9	2.1
Property damage		0.4	0.1	(1.0)	0.5	(2.4)
Homeowners Excluding Catastrophe Losses
(% change year-over-year)
Claim frequency		5.1	13.9	13.5	3.9	5.1
Claim severity		(2.1)	(8.5)	9.0	7.0	3.2

(1)	Measures and statistics presented for Allstate brand exclude the Company’s Canadian operations, loan protection and specialty auto.
(2)	Policies in Force: Policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy.
(3)	New Issued Applications: Item counts of automobiles or homeowners insurance applications for insurance policies that were issued during the period. Does not include automobiles that are added by existing customers.
(4)	Average Premium - Gross Written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts and surcharges; and exclude the impacts from mid-term premium adjustments, ceded reinsurance premiums, or premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners.
(5)	Average Premium - Net Earned: Earned premium divided by average policies in force for the period. Earned premium includes the impacts from mid-term premium adjustments and ceded reinsurance, but does not include impacts of premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners.
(6)	Renewal ratio: Renewal policies issued during the period, based on contract effective dates, divided by the total policies issued 6 months prior for auto (12 months prior for Encompass brand standard auto) or 12 months prior for homeowners.

20

THE ALLSTATE CORPORATION

HOMEOWNERS SUPPLEMENTAL INFORMATION

($ in millions)

		Three months ended March 31, 2010
										Premium rate changes (5)
											Annual impact of
								Effect of			rate changes
		Earned		Incurred			Catastrophe	catastrophes	Number of	Number of	on state specific
Primary Exposure Groupings (1)		premiums		losses	Loss ratios		losses	on loss ratio	catastrophes	states	premiums written
Florida	$	16	$	17	106.3%	$	-	- %
Other hurricane exposure states		782		913	116.8%		493	63.0%
Total hurricane exposure states  (2)		798		930	116.5%		493	61.8%		2	6.7%
Other catastrophe exposure states		718		412	57.4%		78	10.9%		8	9.2%
Total	$	1,516	$	1,342	88.5%	$	571	37.7%	11	10	7.2%

		1992 to 2009 Historical Information								1992 to 2009 Historical Information (Adjusted for Industry Reinsurance or Insurance Mechanism)
								Effect of								Effect of
		Earned		Incurred			Catastrophe	catastrophes		Earned		Incurred			Catastrophe	catastrophes	Number of
Primary Exposure Groupings (1)		premiums		losses	Loss ratios		losses	on loss ratio		premiums (4)		losses (3)	Loss ratios (3)		losses (3)	on loss ratio (3)	catastrophes
Florida	$	3,563	$	5,037	141.4%	$	3,552	99.7%	$	3,672	$	3,255	88.6%	$	1,770	48.2%
Other hurricane exposure states		38,580		30,965	80.3%		10,957	28.4%		38,649		30,897	79.9%		10,889	28.2%
Total hurricane exposure states (2)		42,143		36,002	85.4%		14,509	34.4%		42,321		34,152	80.7%		12,659	29.9%
Other catastrophe exposure states		35,898		26,982	75.2%		8,223	22.9%		35,898		25,141	70.0%		6,382	17.8%
Total	$	78,041	$	62,984	80.7%	$	22,732	29.1%	$	78,219	$	59,293	75.8%	$	19,041	24.3%	1,183

(1) Basis of Presentation

This homeowners supplemental information schedule displays financial results for the homeowners business (defined to include standard homeowners, scheduled personal property and other than primary residence lines) for the period 1992 through 2010.  The premiums and losses are presented on a GAAP basis with adjustments as indicated in Notes 3 and 4.  Each state in which the Company writes business has been categorized into one of two exposure groupings (Hurricane or Other).   Hurricane exposure states are comprised of those states in which hurricanes are the primary catastrophe exposure. However, the catastrophe losses for these states include losses due to other kinds of catastrophes.  A catastrophe is defined by Allstate as an event that produces pre-tax losses before reinsurance in excess of $1 million, and involves multiple first party policyholders, or an event that produces a number of claims in excess of a preset per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event.

(2) Hurricane Exposure States

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

(3) Incurred Losses

Incurred losses (which include catastrophe losses) and Catastrophe losses, exclude the effects of those events for which the exposure is now covered, at least in part, by permanent industry reinsurance or insurance mechanism (i.e., Florida Hurricane Catastrophe Fund ("FHCF"), California Earthquake Authority) or with Hawaii hurricanes, coverage is being brokered to a non-affiliated insurance company.  Mechanisms such as the FHCF and external reinsurance are available and are reflected in our capital structure and help mitigate exposure to these types of events.   For the period 1992 - 2009, Incurred losses and Catastrophe losses for the Hurricane exposure states were adjusted to exclude $1.8 billion for losses related to Hurricane Andrew.  Incurred losses and Catastrophe losses for the Other catastrophe exposure states were adjusted to exclude an additional $1.8 billion for losses related to certain California earthquakes and Hawaii hurricanes.  Subsequent catastrophes of a similar magnitude are not excluded from the exhibit.  Through the use of the insurance mechanisms, Allstate may have a contingent liability for industry assessments and losses exceeding the claims paying capacity of these mechanisms as discussed in the Annual Report on Form 10-K.

(4) Earned Premiums

Earned premiums for the Hurricane exposure locations was adjusted to add back premium ceded to third party reinsurers of $178 million for hurricane reinsurance purchased in Florida, the Northeast and other states during the period 1992 to 2005.  These programs support management actions that address hurricane exposures.  Mechanisms such as the FHCF and external reinsurance are available and are reflected in our capital structure because they help mitigate exposure to these types of events, but no impact is reflected in earned premiums above.

(5) Premium Rate Changes

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

21

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

EFFECT OF CATASTROPHE LOSSES ON THE COMBINED RATIO

($ in millions, except ratios)

											Excludes the effect of
											catastrophe losses relating to
											earthquakes and hurricanes
	Effect of all catastrophe losses on the Property-Liability					Premiums		Total			Total	Effect on the
	combined ratio					earned		catastrophe			catastrophe	Property-Liability
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year	year-to-date		losses by year			losses by year	combined ratio
1992 (3)	3.2	7.1	48.7	25.5	21.2	$	15,542	$		3,301	680	4.4
1993 (3)	5.8	3.0	1.2	3.8	3.4	16,039		547			607	3.8
1994 (3)	27.4	4.4	9.5	7.3	12.0	16,513		1,989			529	3.2
1995	4.0	7.8	3.8	5.0	5.2	17,540		905			683	3.9
1996	5.1	6.0	6.4	3.8	5.4	18,366		983			837	4.6
1997	2.4	2.6	2.6	0.3	2.0	18,604		365			325	1.7
1998	2.5	6.3	3.9	3.4	4.0	19,307		780			615	3.2
1999	2.6	5.6	5.4	2.7	4.1	20,112		816			623	3.1
2000	7.0	6.7	1.7	2.3	4.4	21,871		967			930	4.3
2001	1.5	9.8	2.5	2.4	4.0	22,197		894			763	3.4
2002	1.9	5.0	1.6	4.0	3.1	23,361		731			638	2.7
2003	2.2	9.2	6.1	6.5	6.0	24,677		1,489			1,256	5.1
2004	1.6	3.8	26.0	6.2	9.5	25,989		2,468			467	1.8
2005	2.5	2.2	69.4	9.6	21.0	27,039		5,674			460	1.7
2006	1.6	3.7	2.5	4.1	3.0	27,369		810			1,044	3.8
2007	2.4	6.3	5.0	7.0	5.2	27,233		1,409			1,336	4.9
2008	8.4	10.3	26.8	3.9	12.4	26,967		3,342			1,876	7.0
2009	7.8	12.5	6.2	5.0	7.9	26,194		2,069			2,159	8.2
2010	10.0	-	-	-	10.0	6,503		648			648	10.0
Average (2)	5.0	6.3	13.4	5.5	7.5							4.1
	Excludes the effect of catastrophe losses relating to
	Hurricane Andrew, California Earthquakes,					Premiums		Total
	and Hawaii Hurricanes (1)					earned		catastrophe
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year	year-to-date		losses by year
1992 (3)	3.2	7.0	4.5	2.9	4.4	$	15,542	$	681
1993 (3)	5.6	3.0	1.5	5.1	3.8	16,039		607
1994 (3)	5.1	3.8	1.7	2.5	3.2	16,513		535
1995	4.0	7.7	1.8	5.0	4.6	17,540		843
1996	5.1	6.0	6.4	3.8	5.4	18,366		991
1997	2.4	2.6	1.8	0.3	1.8	18,604		329
1998	2.0	6.3	3.9	2.2	3.6	19,307		695
1999	2.6	5.6	5.4	2.3	3.9	20,112		790
2000	7.0	6.7	1.5	1.8	4.3	21,871		930
2001	1.5	8.1	2.5	1.7	3.5	22,197		769
2002	1.8	5.0	1.6	3.6	3.0	23,361		706
2003	2.1	9.0	6.1	6.4	5.9	24,677		1,458
2004	1.6	3.8	26.0	6.2	9.5	25,989		2,468
2005	2.5	2.2	69.4	9.6	21.0	27,039		5,674
2006	1.6	3.7	2.5	4.1	3.0	27,369		810
2007	2.4	6.3	5.0	7.0	5.2	27,233		1,409
2008	8.4	10.3	26.8	3.9	12.4	26,967		3,342
2009	7.8	12.5	6.2	5.0	7.9	26,194		2,069
2010	10.0	-	-	-	10.0	6,503		648
Average (2)	4.1	6.2	11.2	4.3	6.4

(1)The effect of Catastrophe losses on the combined ratio is presented excluding the effects of those events for which the exposure is now covered by an industry reinsurance or insurance mechanism (i.e., Florida Hurricane Catastrophe Fund and California Earthquake Authority) or with Hawaii hurricanes, coverage is being brokered to a non-affiliated insurance company (see the “Commitments, Guarantees and Contingent Liabilities” footnote to the Consolidated Financial Statements).

(2)The effect of Catastrophes and Catastrophes excluding extraordinary catastrophes on the Combined Ratio calculated as an average for all periods since 1992.

(3)The years 1992-1994 have been adjusted to exclude the premiums earned of the PMI Group, a mortgage guarantee insurer that was sold in 1995.

22

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION HISTORICAL CATASTROPHE BY SIZE OF EVENT

($ in millions, except ratios)

Three months ended March 31, 2010
										Average
	Number				Claim and			Combined		catastrophe
Size of catastrophe	of events				claim expense			ratio impact		loss per event
Greater than $250 million	-	-	%	$	-	-	%	-	$	-
$101 million to $250 million	2	18.2			400	61.7		6.1		200
$50 million to $100 million	2	18.2			123	19.0		1.9		62
Less than $50 million	7	63.6			140	21.6		2.2		20
Total	11	100.0	%		663	102.3		10.2		60
Prior year reserve reestimates					(15)	(2.3)		(0.2)
Total catastrophe losses				$	648	100.0	%	10.0

1995 through March 2010
	Principal										Average
	state with	Number				Claim and			Combined		catastrophe
Size of catastrophe	loss	of events				claim expense			ratio impact		loss per event
Greater than $250 million (1)
Hurricane Katrina - 2005	LA				$	3,592	14.8	%	1.0	$	3,592
Hurricane Ike - 2008	TX					909	3.7		0.3		909
Hurricane Rita - 2005	TX					900	3.7		0.3		900
Hurricane Ivan - 2004	FL					631	2.6		0.2		631
Hurricane Charley - 2004	FL					602	2.5		0.2		602
Hurricane Frances - 2004	FL					550	2.2		0.2		550
Hurricane Wilma - 2005	FL					540	2.2		0.2		540
Hurricane Jeanne - 2004	FL					336	1.4		-		336
October 2003 Fires	CA					300	1.2		-		300
Hurricane Gustav - 2008	LA					286	1.2		-		286
Greater than $250 million		10	1.0	%		8,646	35.5		2.4		865
$101 million to $250 million		18	1.8			2,887	11.8		0.8		160
$50 million to $100 million		49	4.9			3,424	14.1		1.0		70
Less than $50 million		928	92.3			9,393	38.6		2.7		10
Total		1,005	100.0	%	$	24,350	100.0	%	6.9		24

(1)Catastrophe claims and claims expense of $2.26 billion related to Hurricane Andrew of 1992 and $2.08 billion related to the Northridge earthquake of 1994, which were incurred prior to 1995, are excluded from the table above.

23

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

EFFECT OF PRE-TAX PRIOR YEAR RESERVE REESTIMATES ON THE COMBINED RATIO

($ in millions, except ratios)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
Pre-tax Reserve Reestimates(1)
Auto	$	5		$	(29	)	$	11		$	(4	)	$	(35	)
Homeowners		(8	)		(50	)		(75	)		(11	)		(32	)
Other personal lines		(22	)		51			(3	)		32			9
Allstate Protection (2)		(25	)		(28	)		(67	)		17			(58	)
Discontinued Lines and Coverages		2			3			15			3			3
Property-Liability	$	(23	)	$	(25	)	$	(52	)	$	20		$	(55	)
Allstate brand	$	(34	)	$	(20	)	$	(74	)	$	9		$	(41	)
Encompass brand		9			(8	)		7			8			(17	)
Allstate Protection (2)	$	(25	)	$	(28	)	$	(67	)	$	17		$	(58	)
Effect of Pre-tax Reserve
Reestimates on Combined Ratio (1)
Auto		0.1			(0.4	)		0.2			-			(0.5	)
Homeowners		(0.1	)		(0.8	)		(1.2	)		(0.2	)		(0.5	)
Other personal lines		(0.4	)		0.8			-			0.5			0.1
Allstate Protection (2)		(0.4	)		(0.4)			(1.0	)		0.3			(0.9	)
Discontinued Lines and Coverages		-			-			0.3			-			0.1
Property-Liability		(0.4	)		(0.4	)		(0.7	)		0.3			(0.8	)
Allstate brand		(0.5	)		(0.3	)		(1.1	)		0.2			(0.6	)
Encompass brand		0.1			(0.1	)		0.1			0.1			(0.3	)
Allstate Protection (2)		(0.4	)		(0.4	)		(1.0	)		0.3			(0.9	)

(1)	Favorable reserve reestimates are shown in parentheses.
(2)	Favorable reserve reestimates included in catastrophe losses totaled $15 million and $60 million in the three months ended March 31, 2010 and 2009, respectively.

24

THE ALLSTATE CORPORATION

ASBESTOS AND ENVIRONMENTAL RESERVES

($ in millions)

		Three months			Twelve months ended December 31,
		ended
		March 31,
		2010			2009			2008			2007			2006			2005
(net of reinsurance)
Asbestos claims
Beginning reserves	$	1,180		$	1,228		$	1,302		$	1,375		$	1,373		$	1,464
Incurred claims and claims expense		-			(8	)		8			17			86			139
Claims and claims expense paid		(23	)		(40	)		(82	)		(90	)		(84	)		(230	)
Ending reserves	$	1,157		$	1,180		$	1,228		$	1,302		$	1,375		$	1,373
Claims and claims expense paid as a percent of ending reserves		2.0	%		3.4	%		6.7	%		6.9	%		6.1	%		16.8	%
Environmental claims
Beginning reserves	$	198		$	195		$	232		$	194		$	205		$	232
Incurred claims and claims expense		-			13			-			63			10			2
Claims and claims expense paid		(1	)		(10	)		(37	)		(25	)		(21	)		(29	)
Ending reserves	$	197		$	198		$	195		$	232		$	194		$	205
Claims and claims expense paid as a percent of ending reserves		0.5	%		5.1	%		19.0	%		10.8	%		10.8	%		14.1	%

25

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL RESULTS

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Investments	$	62,336	$	62,216	$	61,891	$	59,861	$	59,576
Premiums and deposits *	$	1,105	$	1,156	$	1,033	$	1,399	$	1,533
Deposits to contractholder funds		(828)		(898)		(802)		(1,152)		(1,298)
Deposits to separate accounts		(26)		(27)		(27)		(28)		(28)
Change in unearned premiums and other adjustments		38		12		28		29		39
Life and annuity premiums		289		243		232		248		246
Contract charges		255		255		250		246		238
Premiums and contract charges		544		498		482		494		484
Net investment income		731		737		744		764		819
Periodic settlements and accruals on non-hedge derivative instruments		17		14		2		(3)		1
Contract benefits		(442)		(441)		(382)		(407)		(387)
Interest credited to contractholder funds		(463)		(479)		(497)		(520)		(542)
Amortization of deferred policy acquisition costs		(58)		(90)		(108)		(130)		(109)
Operating costs and expenses		(120)		(105)		(99)		(105)		(121)
Restructuring and related charges		—		(1)		(4)		(2)		(18)
Income tax expense on operations		(70)		(38)		(43)		(26)		(42)
Operating income		139		95		95		65		85
Realized capital gains and losses, after-tax		(105)		(178)		(151)		82		(170)
DAC and DSI (amortization) accretion relating to realized capital gains and losses, after-tax		(2)		(45)		18		(131)		(19)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		(18)		-		-		-		(224)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(11)		(9)		(1)		2		(1)
Gain on disposition of operations, after-tax		1		-		1		1		2
Net income (loss)	$	4	$	(137)	$	(38)	$	19	$	(327)

26

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL PREMIUMS AND DEPOSITS

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
PREMIUMS AND DEPOSITS - BY PRODUCT		2010		2009		2009		2009		2009
Underwritten Products
Interest-sensitive life	$	389	$	384	$	355	$	356	$	341
Traditional		99		121		102		101		92
Accident, health, and other		157		121		115		114		110
		645		626		572		571		543
Annuities
Indexed annuities		122		155		105		117		127
Fixed deferred annuities		111		141		196		471		452
Sub-total		233		296		301		588		579
Fixed immediate annuities		86		73		56		81		90
		319		369		357		669		669
Bank deposits		141		161		104		159		321
Total	$	1,105	$	1,156	$	1,033	$	1,399	$	1,533
PREMIUMS AND DEPOSITS - BY DISTRIBUTION CHANNEL
Allstate agencies	$	542	$	647	$	558	$	576	$	735
Financial institutions		102		105		115		329		347
Independent agents		360		320		342		368		327
Specialized brokers and other		101		84		18		126		124
Total	$	1,105	$	1,156	$	1,033	$	1,399	$	1,533

27

THE ALLSTATE CORPORATION

CHANGE IN CONTRACTHOLDER FUNDS

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Beginning balance	$	52,582	$	53,336	$	53,999	$	56,621	$	58,413
Deposits
Fixed annuities		291		351		343		635		635
Interest-sensitive life insurance		395		384		355		357		342
Bank and other deposits		252		275		208		268		427
Total deposits		938		1,010		906		1,260		1,404
Interest credited		462		481		498		515		531
Maturities, benefits, withdrawals and other adjustments
Maturities and retirements of institutional products		(954)		(58)		(212)		(2,552)		(1,951)
Benefits		(395)		(353)		(379)		(406)		(450)
Surrenders and partial withdrawals		(1,248)		(1,540)		(1,184)		(1,235)		(1,213)
Contract charges		(241)		(238)		(232)		(227)		(221)
Net transfers from separate accounts		2		3		2		2		4
Fair value hedge adjustments for institutional products		(123)		(6)		1		78		(48)
Other adjustments		4		(53)		(63)		(57)		152
Total maturities, benefits, withdrawals and other adjustments		(2,955)		(2,245)		(2,067)		(4,397)		(3,727)
Ending balance	$	51,027	$	52,582	$	53,336	$	53,999	$	56,621

28

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL ANALYSIS OF NET INCOME

($ in millions)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
Benefit spread
Premiums	$	289		$	243		$	232		$	248		$	246
Cost of insurance contract charges (1)		156			158			156			150			152
Contract benefits excluding the implied interest on immediate annuities with life contingencies (2)		(303	)		(301	)		(243	)		(267	)		(248	)
Total benefit spread		142			100			145			131			150
Investment spread
Net investment income		731			737			744			764			819
Implied interest on immediate annuities with life contingencies (2)		(139	)		(140	)		(139	)		(140	)		(139	)
Interest credited to contractholder funds		(463	)		(490	)		(496	)		(561	)		(579	)
Total investment spread		129			107			109			63			101
Surrender charges and contract maintenance expense fees (1)		99			97			94			96			86
Realized capital gains and losses		(162	)		(275	)		(234	)		121			(43	)
Amortization of deferred policy acquisition costs		(89	)		(148	)		(80	)		(289	)		(448	)
Operating costs and expenses		(120	)		(105	)		(99	)		(105	)		(121	)
Restructuring and related charges		-			(1	)		(4	)		(2	)		(18	)
Gain on disposition of operations		1			1			2			1			3
Income tax benefit (expense) on operations		4			87			29			3			(37	)
Net income (loss)	$	4		$	(137	)	$	(38	)	$	19		$	(327	)
Benefit spread by product group
Life insurance	$	88		$	68		$	96		$	96		$	103
Accident and health		64			47			50			50			49
Annuities		(10	)		(15	)		(1	)		(15	)		(2	)
Total benefit spread	$	142		$	100		$	145		$	131		$	150
Investment spread by product group
Annuities and institutional products	$	50		$	45		$	44		$	3		$	34
Life insurance		7			1			(2	)		7			(3	)
Bank		8			9			8			7			6
Accident and health		4			3			5			4			4
Net investment income on investments supporting capital		60			49			54			42			60
Total investment spread	$	129		$	107		$	109		$	63		$	101
(1) Reconciliation of contract charges
Cost of insurance contract charges	$	156		$	158		$	156		$	150		$	152
Surrender charges and contract maintenance expense fees		99			97			94			96			86
Total contract charges	$	255		$	255		$	250		$	246		$	238
(2) Reconciliation of contract benefits
Contract benefits excluding the implied interest on immediate annuities with life contingencies	$	(303	)	$	(301	)	$	(243	)	$	(267	)	$	(248	)
Implied interest on immediate annuities with life contingencies		(139	)		(140	)		(139	)		(140	)		(139	)
Total contract benefits	$	(442	)	$	(441	)	$	(382	)	$	(407	)	$	(387	)

29

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS

	Three months ended March 31, 2010							Three months ended March 31, 2009
	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	5.4	%	4.4	%	1.0		%	5.4	%	4.7	%	0.7		%
Deferred fixed annuities and institutional products	4.4		3.2		1.2			4.7		3.4		1.3
Immediate fixed annuities with and without life contingencies	6.3		6.4		(0.1	)		6.3		6.4		(0.1	)
Investments supporting capital, traditional life and other products	4.1		N/A		N/A			4.1		N/A		N/A

30

THE ALLSTATE CORPORATION

CORPORATE AND OTHER RESULTS

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2010		2009		2009		2009		2009
Net investment income	$	15	$	15	$	14	$	10	$	13
Operating costs and expenses		(97)		(108)		(109)		(103)		(90)
Income tax benefit on operations		32		36		37		36		32
Operating loss		(50)		(57)		(58)		(57)		(45)
Realized capital gains and losses, after-tax		2		5		3		5		(2)
Net loss	$	(48)	$	(52)	$	(55)	$	(52)	$	(47)

31

THE ALLSTATE CORPORATION

INVESTMENTS

($ in millions)

	PROPERTY-LIABILITY											ALLSTATE FINANCIAL
			March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
			2010		2009		2009		2009		2009		2010		2009		2009		2009		2009
Fixed income securities, at fair value:
Tax-exempt		$	13,181	$	14,294	$	15,507	$	16,894	$	16,853	$	64	$	64	$	65	$	63	$	37
Taxable			15,552		12,991		12,930		10,164		9,126		50,246		49,222		47,815		44,890		41,731
Equity securities, at fair value			3,580		4,840		4,414		3,118		2,349		227		184		189		179		61
Mortgage loans			50		50		78		98		103		7,589		7,885		8,775		9,308		9,607
Limited partnership interests			1,744		1,674		1,714		1,389		1,384		1,023		1,032		1,021		1,040		1,060
Short-term, at fair value			608		503		588		1,303		818		1,074		1,697		1,785		2,162		4,674
Other			94		174		127		235		300		2,113		2,132		2,241		2,219		2,406
Total		$	34,809	$	34,526	$	35,358	$	33,201	$	30,933	$	62,336	$	62,216	$	61,891	$	59,861	$	59,576
Fixed income securities, at amortized cost:
Tax-exempt		$	13,041	$	14,177	$	15,117	$	17,320	$	17,336	$	60	$	60	$	61	$	61	$	37
Taxable			15,793		13,414		13,404		11,077		10,011		51,392		51,435		50,592		50,711		49,291
Ratio of fair value to amortized cost			99.6%		98.9%		99.7%		95.3%		95.0%		97.8%		95.7%		94.5%		88.5%		84.7%
Equity securities, at cost		$	3,253	$	4,685	$	4,106	$	3,300	$	2,869	$	183	$	160	$	168	$	183	$	78
Short-term, at amortized cost			608		503		588		1,303		818		1,074		1,697		1,785		2,162		4,673
			CORPORATE AND OTHER										CONSOLIDATED
			March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		March 31,		Dec. 31,		Sept 30,		June 30,		March 31,
			2010		2009		2009		2009		2009		2010		2009		2009		2009		2009
Fixed income securities, at fair value:
Tax-exempt		$	652	$	670	$	766	$	752	$	663	$	13,897	$	15,028	$	16,338	$	17,709	$	17,553
Taxable			1,589		1,525		1,478		3		28		67,387		63,738		62,223		55,057		50,885
Equity securities, at fair value			-		-		-		-		-		3,807		5,024		4,603		3,297		2,410
Mortgage loans			-		-		-		-		-		7,639		7,935		8,853		9,406		9,710
Limited partnership interests			35		38		35		35		38		2,802		2,744		2,770		2,464		2,482
Short-term, at fair value			800		856		1,097		2,605		2,633		2,482		3,056		3,470		6,070		8,125
Other			2		2		1		1		2		2,209		2,308		2,369		2,455		2,708
Total		$	3,078	$	3,091	$	3,377	$	3,396	$	3,364	$	100,223	$	99,833	$	100,626	$	96,458	$	93,873
Fixed income securities, at amortized cost:
Tax-exempt		$	619	$	632	$	719	$	718	$	619	$	13,720	$	14,869	$	15,897	$	18,099	$	17,992
Taxable			1,581		1,525		1,474		3		28		68,766		66,374		65,470		61,791		59,330
Ratio of fair value to amortized cost			101.9%		101.8%		102.3%		104.7%		106.8%		98.5%		97.0%		96.6%		91.1%		88.5%
Equity securities, at cost		$	-	$	-	$	-	$	-	$	-	$	3,436	$	4,845	$	4,274	$	3,483	$	2,947
Short-term, at amortized cost			800		856		1,097		2,605		2,633		2,482		3,056		3,470		6,070		8,124

32

THE ALLSTATE CORPORATION

FIXED INCOME SECURITY PORTFOLIO BY CREDIT RATING

($ in millions)

			PROPERTY-LIABILITY										ALLSTATE FINANCIAL
NAIC			March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
Rating	Credit rating		2010		2009		2009		2009		2009		2010		2009		2009		2009		2009
1	Aaa/Aa/A	$	22,814	$	21,714	$	22,281	$	21,170	$	20,329	$	32,371	$	31,676	$	30,922	$	29,369	$	27,614
2	Baa		3,691		3,517		4,080		3,854		3,845		14,742		14,681		13,909		12,995		11,918
3	Ba		858		849		914		964		865		1,686		1,635		1,625		1,716		1,519
4	B		602		506		489		514		481		648		571		754		438		436
5	Caa or lower		511		552		557		440		395		522		628		593		356		227
6	In or near default		257		147		116		116		64		341		95		77		79		54
Total		$	28,733	$	27,285	$	28,437	$	27,058	$	25,979	$	50,310	$	49,286	$	47,880	$	44,953	$	41,768
			CORPORATE AND OTHER										CONSOLIDATED
NAIC			March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
Rating	Credit rating		2010		2009		2009		2009		2009		2010		2009		2009		2009		2009
1	Aaa/Aa/A	$	2,235	$	2,183	$	2,229	$	733	$	667	$	57,420	$	55,573	$	55,432	$	51,272	$	48,610
2	Baa		6		11		12		19		21		18,439		18,209		18,001		16,868		15,784
3	Ba		-		-		-		-		-		2,544		2,484		2,539		2,680		2,384
4	B		-		-		2		2		2		1,250		1,077		1,245		954		919
5	Caa or lower		-		-		-		-		-		1,033		1,180		1,150		796		622
6	In or near default		-		1		1		1		1		598		243		194		196		119
Total		$	2,241	$	2,195	$	2,244	$	755	$	691	$	81,284	$	78,766	$	78,561	$	72,766	$	68,438

33

THE ALLSTATE CORPORATION

UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE

($ in millions)

		March 31, 2010					December 31, 2009					September 30, 2009
		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)
SECURITIES BY TYPE
Fixed income securities
U.S. government and agencies	$	218	$	8,422	102.7	$	203	$	7,536	102.8	$	255	$	8,132	103.2
Municipal		(256)		20,148	98.7		(403)		21,280	98.1		39		22,167	100.2
Corporate		914		34,499	102.7		345		33,115	101.1		206		32,059	100.6
Foreign government		306		3,314	110.2		291		3,197	110.0		330		2,874	113.0
Residential mortgage-backed securities (“RMBS”)		(1,231)		9,112	88.1		(1,500)		7,987	84.2		(1,756)		8,077	82.1
Commercial mortgage-backed securities (“CMBS”)		(768)		2,452	76.1		(925)		2,586	73.7		(1,159)		2,578	69.0
Asset-backed securities (“ABS”)		(387)		3,297	89.5		(488)		3,026	86.1		(720)		2,637	78.6
Redeemable preferred stock		2		40	105.3		-		39	100.0		(1)		37	97.4
Total fixed income securities		(1,202)		81,284	98.5		(2,477)		78,766	97.0		(2,806)		78,561	96.6
Equity securities		371		3,807	110.8		179		5,024	103.7		329		4,603	107.7
Short-term investments		-		2,482	100.0		-		3,056	100.0		-		3,470	100.0
Derivatives		(18)		437	96.0		(23)		548	96.0		(24)		538	95.7
Unrealized net capital gains and losses, pre-tax	$	(849)	$	88,010	99.0	$	(2,321)	$	87,394	97.4	$	(2,501)	$	87,172	97.2
Amounts recognized for:
Insurance reserves (2)		-					-					-
DAC and DSI (3)		726					990					2,679
Amounts recognized		726					990					2,679
Deferred income taxes		39					461					(66)
Unrealized net capital gains and losses, after-tax	$	(84)				$	(870)				$	112

		June 30, 2009					March 31, 2009					December 31, 2008
		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)
SECURITIES BY TYPE
Fixed income securities
U.S. government and agencies	$	253	$	4,185	106.4	$	516	$	3,979	114.9	$	962	$	4,234	129.4
Municipal		(1,025)		23,097	95.8		(1,225)		22,097	94.7		(1,717)		21,848	92.7
Corporate		(1,550)		29,938	95.1		(3,452)		28,309	89.1		(3,413)		27,627	89.0
Foreign government		244		2,723	109.8		366		2,475	117.4		469		2,675	121.3
RMBS		(2,160)		7,503	77.6		(1,721)		6,307	78.6		(1,445)		6,565	82.0
CMBS		(1,746)		3,237	65.0		(2,044)		3,661	64.2		(1,994)		3,846	65.9
ABS		(1,134)		2,051	64.4		(1,313)		1,587	54.7		(1,348)		1,787	57.0
Redeemable preferred stock		(6)		32	84.2		(11)		23	67.6		(10)		26	72.2
Total fixed income securities		(7,124)		72,766	91.1		(8,884)		68,438	88.5		(8,496)		68,608	89.0
Equity securities		(186)		3,297	94.7		(537)		2,410	81.8		(332)		2,805	89.4
Short-term investments		-		6,070	100.0		1		8,125	100.0		3		8,906	100.0
Derivatives		(15)		449	96.8		16		432	103.8		11		301	103.8
Unrealized net capital gains and losses, pre-tax	$	(7,325)	$	82,582	91.9	$	(9,404)	$	79,405	89.4	$	(8,814)	$	80,620	90.1
Amounts recognized for:
Insurance reserves (2)		-					-					(378)
DAC and DSI (3)		4,064					3,785					3,500
Amounts recognized		4,064					3,785					3,122
Deferred income taxes		1,149					1,852					1,954
Unrealized net capital gains and losses, after-tax	$	(2,112)				$	(3,767)				$	(3,738)

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

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

(3)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.  Only the unrealized net capital gains and losses on the Allstate Financial fixed annuity and interest-sensitive life product portfolios are used in this calculation.  The reduction in unrealized net capital losses in the first quarter of 2010 for these product portfolios was less than the reduction in unrealized net capital losses for the total Allstate Financial and consolidated portfolios.  The DAC and DSI adjustment balance, subject to limitations, is determined by applying the DAC and DSI amortization rate to unrealized net capital gains or losses.  Recapitalization of the DAC and DSI balances is limited to the originally deferred costs plus interest.  The DAC adjustment balance (88% of the total DAC and DSI adjustment balance) was limited as of December 31, 2008 and March 31, 2009 because the calculated amount, when added to the DAC balance before the impact of unrealized capital gains and losses, was greater than originally deferred costs plus interest.  The DSI adjustment balance was limited as of December 31, 2008, March 31, 2009, June 30, 2009 and September 30, 2009.  In periods subsequent to the adjustment balance reaching the limitation, the change in the adjustment will not trend in a linear relationship with the change in unrealized gains and losses until such time as the adjustment balance is below the limitation.  The DAC and DSI adjustment balance was below the limitation as of December 31, 2009 and March 31, 2010.  The limitation amount changes from period to period based on changes in the DAC and DSI balance before the impact of unrealized capital gains and losses, as well as new deferrals and interest.

34

THE ALLSTATE CORPORATION

GROSS UNREALIZED GAINS AND LOSSES ON FIXED INCOME SECURITIES BY TYPE AND SECTOR

($ in millions)

		As of March 31, 2010
											Amortized
											cost as a		Fair value
		Par		Amortized		Gross unrealized				Fair	percent of		as a percent
		value (1)		cost		Gains		Losses		value	par value (2)		of par value (2)
Corporate:
Banking	$	4,242	$	4,063	$	104	$	(206)	$	3,961	95.8	%	93.4	%
Financial services		3,371		3,275		109		(60)		3,324	97.2		98.6
Consumer goods (cyclical and non-cyclical)		5,002		5,064		233		(51)		5,246	101.2		104.9
Utilities		5,899		5,903		337		(50)		6,190	100.1		104.9
Transportation		1,661		1,677		72		(33)		1,716	101.0		103.3
Capital goods		3,551		3,560		171		(28)		3,703	100.3		104.3
Basic industry		1,480		1,502		71		(15)		1,558	101.5		105.3
Energy		2,212		2,230		106		(12)		2,324	100.8		105.1
Communications		1,947		1,921		91		(11)		2,001	98.7		102.8
Technology		1,121		1,138		51		(10)		1,179	101.5		105.2
FDIC guaranteed		1,982		1,994		25		-		2,019	100.6		101.9
Other		1,403		1,258		43		(23)		1,278	89.7		91.1
Total corporate fixed income portfolio		33,871		33,585		1,413		(499)		34,499	99.2		101.9
U.S. government and agencies		8,845		8,204		238		(20)		8,422	92.8		95.2
Municipal		25,891		20,404		517		(773)		20,148	78.8		77.8
Foreign government		3,474		3,008		315		(9)		3,314	86.6		95.4
RMBS		10,966		10,343		173		(1,404)		9,112	94.3		83.1
CMBS		3,286		3,220		44		(812)		2,452	98.0		74.6
ABS		4,105		3,684		80		(467)		3,297	89.7		80.3
Redeemable preferred stock		47		38		2		-		40	80.9		85.1
Total fixed income securities	$	90,485	$	82,486	$	2,782	$	(3,984)	$	81,284	91.2		89.8

(1)Included in par value are zero-coupon securities that are generally purchased at a deep discount to the par value that is received at maturity.  These primarily included corporate, municipal, foreign government and U.S. government and agencies zero-coupon securities with par value of $882 million, $7.83 billion, $1.35 billion and $1.49 billion, respectively.

(2)Excluding the impact of zero-coupon securities, the percentage of amortized cost to par value would be 99.7% for corporates, 99.9% for municipals, 104.2% for foreign governments and 101.3% for U.S. government and agencies.  Similarly, excluding the impact of zero-coupon securities, the percentage of fair value to par value would be 102.3% for corporates, 99.8% for municipals, 108.9% for foreign governments and 102.8% for U.S. government and agencies.

35

THE ALLSTATE CORPORATION

FAIR VALUE AND UNREALIZED NET CAPITAL GAINS AND LOSSES FOR FIXED INCOME SECURITIES BY CREDIT RATING

($ in millions)

		As of March 31, 2010
		Aaa				Aa				A				Baa				Ba or lower				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized		Par		Fair		Unrealized
		value		gain/(loss)		value		gain/(loss)		value		gain/(loss)		value		gain/(loss)		value		gain/(loss)		value		value		gain/(loss)
U.S. government and agencies	$	8,422	$	218	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	8,845	$	8,422	$	218
Municipal
Tax exempt		1,480		95		5,743		178		4,072		55		1,925		(81)		677		(70)		15,084		13,897		177
Taxable		135		3		2,268		(31)		1,350		(89)		791		(163)		166		(50)		9,163		4,710		(330)
Auction rate securities		1,175		(47)		99		(9)		118		(19)		45		(7)		104		(21)		1,644		1,541		(103)
Corporate
Public		2,506		32		2,620		69		6,186		291		7,713		324		931		1		19,092		19,956		717
Privately placed		753		23		1,580		55		3,519		139		6,184		122		1,142		-		13,186		13,178		339
Hybrid		33		3		60		9		584		(74)		484		(80)		204		-		1,593		1,365		(142)
Foreign government		2,025		240		419		10		468		38		385		18		17		-		3,474		3,314		306
RMBS
U.S. government sponsored entities		5,452		146		-		-		-		-		-		-		-		-		5,227		5,452		146
Prime residential mortgage-backed securities		584		(14)		99		(12)		209		(7)		20		(7)		378		(30)		1,421		1,290		(70)
Alt-A residential mortgage-backed securities		42		(4)		72		(10)		113		(9)		66		(15)		443		(161)		1,204		736		(199)
Subprime residential mortgage-backed securities		175		(12)		454		(185)		139		(104)		78		(61)		788		(746)		3,114		1,634		(1,108)
CMBS		1,557		(35)		344		(74)		237		(219)		194		(234)		120		(206)		3,286		2,452		(768)
ABS
Collateralized debt obligations		36		(10)		514		(14)		532		(92)		264		(87)		416		(170)		2,501		1,762		(373)
Consumer and other asset-backed securities		787		3		257		(1)		199		(6)		258		(5)		34		(5)		1,604		1,535		(14)
Redeemable preferred stock		-		-		-		-		3		-		32		2		5		-		47		40		2
Total fixed income securities	$	25,162	$	641	$	14,529	$	(15)	$	17,729	$	(96)	$	18,439	$	(274)	$	5,425	$	(1,458)	$	90,485	$	81,284	$	(1,202)

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THE ALLSTATE CORPORATION

REALIZED CAPITAL GAINS AND LOSSES BY TRANSACTION TYPE

($ in millions)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
Impairment write-downs (1)	$	(223	)	$	(270	)	$	(381	)	$	(291	)	$	(620	)
Change in intent write-downs (2)		(32	)		(215	)		(11	)		(26	)		(105	)
Net other-than-temporary impairment losses recognized in earnings		(255	)		(485	)		(392	)		(317	)		(725	)
Sales		88			390			201			263			418
Valuation of derivative instruments		(155	)		166			(269	)		367			103
Settlements of derivative instruments		(30	)		(110	)		(92	)		52			(12	)
EMA limited partnership income		4			6			33			(37	)		(143	)
Total	$	(348	)	$	(33	)	$	(519	)	$	328		$	(359	)

(1)Beginning April 1, 2009 for fixed income securities, impairment write-downs reflect the credit loss component of issue specific other-than-temporary declines in fair value where the amortized cost basis is not expected to be entirely recovered.  For periods prior to April 1, 2009 for fixed income securities and all periods for equity securities, impairment write-downs reflect issue specific other-than-temporary declines in fair value, including instances where the Company could not reasonably assert that the recovery period would be temporary.

(2)Beginning April 1, 2009 for fixed income securities, change in intent write-downs reflect instances where the Company has made a decision to sell the security or it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis.  For periods prior to April 1, 2009 for fixed income securities and all periods for equity securities, change in intent write-downs reflect instances where the Company could not assert a positive intent to hold until recovery.

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THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

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

($ in millions)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
NET INVESTMENT INCOME
Fixed income securities:
Tax-exempt	$	165		$	180		$	204		$	217		$	225
Taxable		130			126			120			111			109
Equity securities		20			29			13			18			15
Mortgage loans		1			-			2			1			1
Limited partnership interests (3)		3			4			2			2			1
Short-term		1			2			1			1			3
Other		1			1			2			-			1
Sub-total		321			342			344			350			355
Less: Investment expense		(17	)		(18	)		(18	)		(16	)		(11	)
Net investment income	$	304		$	324		$	326		$	334		$	344
Net investment income, after-tax	$	247		$	266		$	273		$	282		$	290
PRE-TAX YIELDS (1)
Fixed income securities:
Tax-exempt		4.9			4.9			5.0			5.0			5.2
Equivalent yield for tax-exempt		7.1			7.1			7.3			7.3			7.6
Taxable		3.5			3.7			3.9			4.2			4.7
Equity securities		2.0			2.7			1.5			2.2			2.1
Mortgage loans		6.0			5.0			4.5			4.5			4.5
Limited partnership interests		0.8			0.8			0.6			0.4			0.3
Total portfolio (2)		3.7			3.9			3.9			4.1			4.3
REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE
Fixed income securities:
Tax-exempt	$	(4	)	$	(12	)	$	27		$	9		$	(28	)
Taxable		(43	)		(40	)		-			(3	)		(7	)
Equity securities		14			336			(22	)		26			(138	)
Limited partnership interests		(7	)		19			11			(30	)		(164	)
Derivatives and other		(150	)		(68	)		(306	)		199			23
Total	$	(190	)	$	235		$	(290	)	$	201		$	(314	)
REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(79	)	$	(91	)	$	(100	)	$	(87	)	$	(256	)
Change in intent write-downs (4)		(9	)		(6	)		(10	)		(1	)		(72	)
Net other-than-temporary impairment losses recognized in earnings		(88	)		(97	)		(110	)		(88	)		(328	)
Sales (4)		41			377			91			93			50
Valuation of derivative instruments		(101	)		53			(209	)		188			20
Settlements of derivative instruments		(49	)		(121	)		(99	)		11			6
EMA limited partnership income		7			23			37			(3	)		(62	)
Total	$	(190	)	$	235		$	(290	)	$	201		$	(314	)

(1)Pre-tax yields are calculated as annualized investment income (including dividend income in the case of equity securities) divided by the average of investment balances at the end of each quarter during the year.  Investment balances, for purposes of the pre-tax yield calculation, exclude unrealized capital gains and losses.

(2)The pre-tax yield for the total portfolio reflects the yield on total investments.  Total investments includes fixed income and equity securities, mortgage loans, limited partnership interests, short-term and other investments.

(3)At March 31, 2010, we have commitments to invest in additional limited partnership interests totaling $595 million.

(4)Includes $1 million of write-downs for equity securities effectively carried on a lower of cost or fair value basis because we do not intend to hold them until recovery for the three months ended March 31, 2010, respectively.

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THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL

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

($ in millions)

	Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2010			2009			2009			2009			2009
NET INVESTMENT INCOME
Fixed income securities	$	652		$	657		$	654		$	658		$	699
Equity securities		1			1			2			1			1
Mortgage loans		103			109			119			130			136
Limited partnership interests (3)		3			2			2			2			2
Short-term		1			1			2			2			7
Other		(2	)		(4	)		(7	)		(4	)		(1	)
Sub-total		758			766			772			789			844
Less: Investment expense		(27	)		(29	)		(28	)		(25	)		(25	)
Net investment income	$	731		$	737		$	744		$	764		$	819
Net investment income, after-tax	$	478		$	480		$	489		$	500		$	535
PRE-TAX YIELDS (1)
Fixed income securities		5.1			5.2			5.2			5.3			5.6
Equity securities		2.3			3.7			3.1			4.8			2.9
Mortgage loans		5.3			5.2			5.3			5.5			5.5
Limited partnership interests		1.0			1.0			0.6			0.7			0.8
Total portfolio (2)		4.7			4.7			4.7			4.8			5.0
REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE
Fixed income securities	$	(92	)	$	(342	)	$	(64	)	$	2		$	140
Equity securities		-			2			1			1			(25	)
Mortgage loans		(25	)		(30	)		(66	)		(16	)		(32	)
Limited partnership interests		(15	)		(26	)		(32	)		(53	)		(171	)
Derivatives and other		(30	)		121			(73	)		187			45
Total	$	(162	)	$	(275	)	$	(234	)	$	121		$	(43	)
REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(144	)	$	(179	)	$	(281	)	$	(204	)	$	(357	)
Change in intent write-downs		(23	)		(209	)		(1	)		(25	)		(33	)
Net other-than-temporary impairment losses recognized in earnings		(167	)		(388	)		(282	)		(229	)		(390	)
Sales		44			10			106			163			359
Valuation of derivative instruments		(54	)		113			(60	)		179			83
Settlements of derivative instruments		19			11			7			41			(18	)
EMA limited partnership income		(4	)		(21	)		(5	)		(33	)		(77	)
Total	$	(162	)	$	(275	)	$	(234	)	$	121		$	(43	)

(1)Pre-tax yields are calculated as annualized investment income (including dividend income in the case of equity securities) divided by the average of investment balances at the end of each quarter during the year. Investment balances, for purposes of the pre-tax yield calculation, exclude unrealized capital gains and losses.

(2)The pre-tax yield for the total portfolio reflects the yield on total investments. Total investments include fixed income and equity securities, mortgage loans, limited partnership interests, short-term and other investments.

(3)At March 31, 2010, we have commitments to invest in additional limited partnership interests totaling $759 million.

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Definitions of Non-GAAP and Operating Measures

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

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

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

- amortization of DAC and deferred sales inducements (“DSI”), to the extent they resulted from the recognition of certain realized capital gains and losses,

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

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

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

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

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

Combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio and the effect of prior year reserve reestimates on the combined ratio.  The most directly comparable GAAP measure is the combined ratio.  We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses and prior year reserve reestimates.  These 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.  We also provide it to facilitate a comparison to our outlook on the 2009 combined ratio excluding the effect of catastrophe losses and prior year reserve reestimates.  The combined ratio excluding the effect of catastrophes and prior year reserve reestimates 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 combined ratio excluding the effect of catastrophes and prior year reserve reestimates to combined ratio is provided in the schedule, “Property-Liability Results”.

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

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

Operating Measures

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

Premiums written is the amount of premiums charged for policies issued during a fiscal period.  Premiums earned is a GAAP measure.  Premiums are considered earned and are included in financial results on a pro-rata basis over the policy period.  The portion of premiums written applicable to the unexpired terms of the policies is recorded as unearned premiums on our Consolidated Statements of Financial Position.  A reconciliation of premiums written to premiums earned is presented in the schedule, “Property-Liability Results”.

Premiums and deposits is an operating measure that we use to analyze production trends for Allstate Financial sales.  It includes premiums on insurance policies and annuities and all deposits and other funds received from customers on deposit-type products including the net new deposits of Allstate Bank, which we account for under GAAP as increases to liabilities rather than as revenue.  An illustration of where premiums and deposits are reflected in the consolidated financial statements is included in the schedule, “Allstate Financial Results”.

Definitions of GAAP Operating Ratios and Impacts of Specific Items on the GAAP Operating Ratios

We use the following operating ratios to measure the profitability of our Property-Liability results.  We believe that they enhance an investor’s understanding of our profitability.  They are calculated as follows:

Claims and claims expense (“loss”) ratio is the ratio of claims and claims expense to premiums earned.  Loss ratios include the impact of catastrophe losses.

Expense ratio is the ratio of amortization of DAC, operating costs and expenses and restructuring and related charges to premiums earned.

Combined ratio is the ratio of claims and claims expense, amortization of DAC, operating costs and expenses and restructuring and related charges to premiums earned.  The combined ratio is the sum of the loss ratio and the expense ratio.  The difference between 100% and the combined ratio represents underwriting income (loss) as a percentage of premiums earned.

Effect of Discontinued Lines and Coverages on combined ratio is the ratio of claims and claims expense and other costs and expenses in the Discontinued Lines and Coverages segment to Property-Liability premiums earned.  The sum of the effect of Discontinued Lines and Coverages on the combined ratio and the Allstate Protection combined ratio is equal to the Property-Liability combined ratio.

Effect of catastrophe losses on combined ratio is the percentage of catastrophe losses included in claims and claims expense to premiums earned.  This ratio includes prior year reserve reestimates of catastrophe losses.

Effect of prior year reserve reestimates on combined ratio is the percentage of prior year reserve reestimates included in claims and claims expense to premiums earned.  This ratio includes prior year reserve reestimates of catastrophe losses.

Effect of pre-tax reserve reestimates on combined ratio is the percentage of prior year reserve reestimates included in claims and claims expense to premiums earned.  This ratio includes prior year reserve reestimates of catastrophe losses.

Effect of restructuring and related charges on combined ratio is the percentage of restructuring and related charges to premiums earned.

40