Exhibit 99.2

THE ALLSTATE CORPORATION

Investor Supplement

First Quarter 2013

The consolidated financial statements and financial exhibits included herein are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto included in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.  The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

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

THE ALLSTATE CORPORATION

Investor Supplement - First Quarter 2013

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 Brand Premiums Written	13
	Impact of Net Rate Changes Approved on Premiums Written	14
	Allstate Brand Profitability Measures	15
	Encompass Brand Profitability Measures	16
	Esurance Brand Profitability Measures and Statistics	17
	Standard Auto Profitability Measures	18
	Allstate Brand Standard Auto Loss Ratio of Top 5 States	19
	Non-standard Auto Profitability Measures	20
	Auto Profitability Measures	21
	Homeowners Profitability Measures	22
	Other Personal Lines Profitability Measures	23
	Property-Liability Policies in Force and Other Statistics	24
	Allstate Brand Domestic Operating Measures and Statistics	25
	Homeowners Supplemental Information	26
	Allstate Protection Catastrophe Losses by Market Segment	27
	Effect of Catastrophe Losses on the Combined Ratio	28
	Allstate Protection Catastrophe by Size of Event	29
	Prior Year Reserve Reestimates	30
	Asbestos and Environmental Reserves	31
Allstate Financial Operations
	Allstate Financial Results	32
	Return on Attributed Equity	33
	Premiums and Contract Charges	34
	Change in Contractholder Funds	35
	Analysis of Net Income	36
	Allstate Financial Weighted Average Investment Spreads	37
	Allstate Financial Supplemental Product Information	38
Corporate and Other Results		39
Investments
	Investments	40
	Investment Portfolio Details	41
	Limited Partnership Investments	42
	Unrealized Net Capital Gains and Losses on Security Portfolio by Type	43
	Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	44
	Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	45
	Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	46
	Investment Results	47
Definitions of Non-GAAP Measures		48

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,
		2013			2012			2012			2012			2012
Revenues
Property-liability insurance premiums	$	6,770		$	6,744		$	6,697		$	6,666		$	6,630
Life and annuity premiums and contract charges		579			566			563			559			553
Net investment income		983			1,033			940			1,026			1,011
Realized capital gains and losses:
Total other-than-temporary impairment losses		(27	)		(44	)		(39	)		(69	)		(87	)
Portion of loss recognized in other comprehensive income		(10	)		(10	)		(7	)		19			4
Net other-than-temporary impairment losses recognized in earnings		(37	)		(54	)		(46	)		(50	)		(83	)
Sales and other realized capital gains and losses		168			258			(26	)		77			251
Total realized capital gains and losses		131			204			(72	)		27			168
Total revenues		8,463			8,547			8,128			8,278			8,362
Costs and expenses
Property-liability insurance claims and claims expense		4,460			5,042			4,293			4,810			4,339
Life and annuity contract benefits		458			464			453			462			439
Interest credited to contractholder funds		345			357			215			366			378
Amortization of deferred policy acquisition costs		946			947			1,016			942			979
Operating costs and expenses		1,102			1,095			1,010			996			1,017
Restructuring and related charges		26			9			9			10			6
Interest expense		98			92			93			93			95
Total costs and expenses		7,435			8,006			7,089			7,679			7,253
Gain on disposition of operations		2			3			9			3			3
Income from operations before income tax expense		1,030			544			1,048			602			1,112
Income tax expense		321			150			325			179			346
Net income	$	709		$	394		$	723		$	423		$	766
Earnings per share: (1)
Net income per share - Basic	$	1.49		$	0.82		$	1.49		$	0.86		$	1.54
Weighted average shares - Basic		475.4			482.2			485.9			490.6			498.7
Net income per share - Diluted	$	1.47		$	0.81		$	1.48		$	0.86		$	1.53
Weighted average shares - Diluted		480.8			487.0			489.9			493.8			501.5
Cash dividends declared per share	$	0.25		$	0.22		$	0.22		$	0.22		$	0.22

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

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,
		2013			2012			2012			2012			2012
Contribution to income
Operating income before the impact of restructuring and related charges	$	664		$	295		$	723		$	438		$	714
Restructuring and related charges, after-tax		(17	)		(6	)		(6	)		(6	)		(4	)
Operating income *		647			289			717			432			710
Realized capital gains and losses, after-tax		85			136			(47	)		17			110
Valuation changes on embedded derivatives that are not hedged, after-tax		(6	)		(6	)		97			(3	)		(6	)
DAC and DSI accretion (amortization) relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		1			(4	)		(28	)		-			(10	)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-			-			4			-			-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(5	)		(7	)		(8	)		(9	)		(9	)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(14	)		(16	)		(18	)		(16	)		(31	)
Gain on disposition of operations, after-tax		1			2			6			2			2
Net income	$	709		$	394		$	723		$	423		$	766
Income per share - Diluted (1)
Operating income before the impact of restructuring and related charges	$	1.38		$	0.61		$	1.48		$	0.89		$	1.42
Restructuring and related charges, after-tax		(0.03	)		(0.02	)		(0.02	)		(0.02	)		-
Operating income		1.35			0.59			1.46			0.87			1.42
Realized capital gains and losses, after-tax		0.18			0.28			(0.09	)		0.04			0.22
Valuation changes on embedded derivatives that are not hedged, after-tax		(0.02	)		(0.01	)		0.20			(0.01	)		(0.01	)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		-			(0.01	)		(0.06	)		-			(0.02	)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-			-			0.01			-			-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(0.01	)		(0.01	)		(0.01	)		(0.02	)		(0.02	)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(0.03	)		(0.03	)		(0.04	)		(0.03	)		(0.06	)
Gain on disposition of operations, after-tax		-			-			0.01			0.01			-
Net income	$	1.47		$	0.81		$	1.48		$	0.86		$	1.53
Weighted average shares - Diluted		480.8			487.0			489.9			493.8			501.5

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

2

THE ALLSTATE CORPORATION

REVENUES

($ in millions)

		Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013			2012			2012			2012			2012
Property-Liability
Property-liability insurance premiums	$	6,770		$	6,744		$	6,697		$	6,666		$	6,630
Net investment income		341			362			299			352			313
Realized capital gains and losses		112			143			(16	)		19			189
Total Property-Liability revenues		7,223			7,249			6,980			7,037			7,132
Allstate Financial
Life and annuity premiums and contract charges		579			566			563			559			553
Net investment income		635			665			632			663			687
Realized capital gains and losses		19			56			(56	)		8			(21	)
Total Allstate Financial revenues		1,233			1,287			1,139			1,230			1,219
Corporate and Other
Service fees (1)		1			1			1			1			1
Net investment income		7			6			9			11			11
Realized capital gains and losses		-			5			-			-			-
Total Corporate and Other revenues before reclassification of services fees		8			12			10			12			12
Reclassification of service fees (1)		(1	)		(1	)		(1	)		(1	)		(1	)
Total Corporate and Other revenues		7			11			9			11			11
Consolidated revenues	$	8,463		$	8,547		$	8,128		$	8,278		$	8,362

(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,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013		2012		2012		2012		2012			2013			2012			2012			2012			2012
Assets											Liabilities
Investments											Reserve for property-liability insurance
Fixed income securities, at fair value											claims and claims expense	$	20,920		$	21,288		$	20,197		$	20,395		$	20,283
(amortized cost $70,957, $71,915,											Reserve for life-contingent contract benefits		14,767			14,895			14,900			14,640			14,296
$72,432, $73,925 and $74,060)	$	75,806	$	77,017	$	77,729	$	77,926	$	77,223	Contractholder funds		38,807			39,319			40,110			40,832			41,603
Equity securities, at fair value											Unearned premiums		10,218			10,375			10,494			10,085			9,888
(cost $3,777, $3,577, $3,429,											Claim payments outstanding		757			797			763			813			750
$3,430 and $3,430)		4,439		4,037		3,876		3,681		3,847	Deferred income taxes		782			597			689			53			-
Mortgage loans		6,434		6,570		6,904		6,928		7,167	Other liabilities and accrued expenses		6,436			6,429			6,121			6,394			6,490
Limited partnership interests		4,931		4,922		4,974		4,694		4,637	Long-term debt		6,556			6,057			6,057			6,058			6,058
Short-term, at fair value											Separate Accounts		6,750			6,610			6,820			6,790			7,355
(amortized cost $3,169, $2,336,											Total liabilities		105,993			106,367			106,151			106,060			106,723
$2,825, $1,867 and $1,886)		3,169		2,336		2,825		1,867		1,886	Equity
Other		2,603		2,396		2,208		2,224		2,249
Total investments		97,382		97,278		98,516		97,320		97,009	Common stock, 468 million, 479 million, 483 million,
											486 million and 493 million shares outstanding		9			9			9			9			9
											Additional capital paid-in		3,028			3,162			3,154			3,154			3,151
											Retained income		34,375			33,783			33,496			32,880			32,565
											Deferred ESOP expense		(39	)		(41	)		(41	)		(41	)		(41	)
											Treasury stock, at cost (432 million, 421 million,
											417 million, 414 million and 407 million shares)		(18,033	)		(17,508	)		(17,368	)		(17,272	)		(17,034	)
											Accumulated other comprehensive income:
											Unrealized net capital gains and losses:
											Unrealized net capital gains and losses on fixed income
											securities with other-than-temporary impairments		30			(11	)		(42	)		(105	)		(100	)
Cash		820		806		642		571		577	Other unrealized net capital gains and losses		3,543			3,614			3,765			2,859			2,412
Premium installment receivables, net		5,066		5,051		5,108		4,929		4,908	Unrealized adjustment to DAC, DSI and insurance
Deferred policy acquisition costs		3,660		3,621		3,578		3,644		3,716	reserves		(668	)		(769	)		(843	)		(684	)		(438	)
Reinsurance recoverables, net (1)		8,316		8,767		7,278		7,120		7,118	Total unrealized net capital gains and losses		2,905			2,834			2,880			2,070			1,874
Accrued investment income		792		781		835		846		846	Unrealized foreign currency translation
Deferred income taxes		-		-		-		-		201	adjustments		58			70			70			58			65
Property and equipment, net		998		989		928		909		912	Unrecognized pension and other
Goodwill		1,239		1,240		1,242		1,242		1,242	postretirement benefit cost		(1,684	)		(1,729	)		(1,363	)		(1,383	)		(1,407	)
Other assets		1,589		1,804		2,041		2,164		2,049	Total accumulated other comprehensive
Separate Accounts		6,750		6,610		6,820		6,790		7,355	income		1,279			1,175			1,587			745			532
											Total shareholders’ equity		20,619			20,580			20,837			19,475			19,182
											Noncontrolling interest		-			-			-			-			28
											Total equity		20,619			20,580			20,837			19,475			19,210
Total assets	$	126,612	$	126,947	$	126,988	$	125,535	$	125,933	Total liabilities and equity	$	126,612		$	126,947		$	126,988		$	125,535		$	125,933

(1)Reinsurance recoverables of unpaid losses related to Property-Liability were $3,568 million, $4,010 million, $2,651 million, $2,544 million and $2,571 million as of March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, 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,
		2013		2012		2012		2012		2012
Book value per share
Numerator:
Shareholders’ equity	$	20,619	$	20,580	$	20,837	$	19,475	$	19,182
Denominator:
Shares outstanding and dilutive potential shares outstanding		474.4		485.5		488.7		490.2		497.3
Book value per share	$	43.46	$	42.39	$	42.64	$	39.73	$	38.57
Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities *
Numerator:
Shareholders’ equity	$	20,619	$	20,580	$	20,837	$	19,475	$	19,182
Unrealized net capital gains and losses on fixed income securities		2,486		2,549		2,602		1,919		1,620
Adjusted shareholders’ equity	$	18,133	$	18,031	$	18,235	$	17,556	$	17,562
Denominator:
Shares outstanding and dilutive potential shares outstanding		474.4		485.5		488.7		490.2		497.3
Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities	$	38.22	$	37.14	$	37.31	$	35.81	$	35.31

5

THE ALLSTATE CORPORATION

RETURN ON SHAREHOLDERS’ EQUITY

($ in millions)

		Twelve months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013			2012			2012			2012			2012
Return on Shareholders’ Equity
Numerator:
Net income (1)	$	2,249		$	2,306		$	2,624		$	2,076		$	1,029
Denominator:
Beginning shareholders’ equity	$	19,182		$	18,298		$	17,732		$	18,382		$	18,898
Ending shareholders’ equity		20,619			20,580			20,837			19,475			19,182
Average shareholders’ equity (2)	$	19,901		$	19,439		$	19,285		$	18,929		$	19,040
Return on shareholders’ equity		11.3	%		11.9	%		13.6	%		11.0	%		5.4	%
Operating Income Return on Shareholders’ Equity *
Numerator:
Operating income (1)	$	2,085		$	2,148		$	2,594		$	1,957		$	878
Denominator:
Beginning shareholders’ equity	$	19,182		$	18,298		$	17,732		$	18,382		$	18,898
Unrealized net capital gains and losses		1,874			1,400			1,065			1,475			1,072
Adjusted beginning shareholders’ equity		17,308			16,898			16,667			16,907			17,826
Ending shareholders’ equity		20,619			20,580			20,837			19,475			19,182
Unrealized net capital gains and losses		2,905			2,834			2,880			2,070			1,874
Adjusted ending shareholders’ equity		17,714			17,746			17,957			17,405			17,308
Average adjusted shareholders’ equity (2)	$	17,511		$	17,322		$	17,312		$	17,156		$	17,567
Operating income return on shareholders’ equity		11.9	%		12.4	%		15.0	%		11.4	%		5.0	%

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

6

THE ALLSTATE CORPORATION

DEBT TO CAPITAL

($ in millions)

		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,
		2013				2012				2012				2012				2012
Debt
Long-term debt	$	6,556			$	6,057			$	6,057			$	6,058			$	6,058
Capital resources
Debt	$	6,556			$	6,057			$	6,057			$	6,058			$	6,058
Shareholders’ equity
Common stock		9				9				9				9				9
Additional capital paid-in		3,028				3,162				3,154				3,154				3,151
Retained income		34,375				33,783				33,496				32,880				32,565
Deferred ESOP expense		(39	)			(41	)			(41	)			(41	)			(41	)
Treasury stock		(18,033	)			(17,508	)			(17,368	)			(17,272	)			(17,034	)
Unrealized net capital gains and losses		2,905				2,834				2,880				2,070				1,874
Unrealized foreign currency translation adjustments		58				70				70				58				65
Unrecognized pension and other postretirement benefit cost		(1,684	)			(1,729	)			(1,363	)			(1,383	)			(1,407	)
Total shareholders’ equity		20,619				20,580				20,837				19,475				19,182
Total capital resources	$	27,175			$	26,637			$	26,894			$	25,533			$	25,240
Ratio of debt to shareholders’ equity		31.8		%		29.4		%		29.1		%		31.1		%		31.6		%
Ratio of debt to capital resources		24.1		%		22.7		%		22.5		%		23.7		%		24.0		%

7

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

		Three months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013			2012			2012			2012			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	709		$	394		$	723		$	423		$	766
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items		87			95			92			105			96
Realized capital gains and losses		(131	)		(204	)		72			(27	)		(168	)
Gain on disposition of operations		(2	)		(3	)		(9	)		(3	)		(3	)
Interest credited to contractholder funds		345			357			215			366			378
Changes in:
Policy benefits and other insurance reserves		(514	)		983			(392	)		(31	)		(346	)
Unearned premiums		(146	)		(115	)		394			207			(180	)
Deferred policy acquisition costs		(30	)		(31	)		7			(46	)		52
Premium installment receivables, net		(22	)		53			(169	)		(28	)		19
Reinsurance recoverables, net		406			(1,421	)		(166	)		(30	)		57
Income taxes		277			29			328			8			333
Other operating assets and liabilities		(239	)		299			(251	)		23			(197	)
Net cash provided by operating activities		740			436			844			967			807
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales
Fixed income securities		5,474			4,920			4,034			4,229			5,689
Equity securities		210			150			70			216			1,059
Limited partnership interests		160			331			271			393			403
Mortgage loans		2			3			-			5			6
Other investments		15			44			16			52			36
Investment collections
Fixed income securities		1,745			1,525			1,751			1,175			966
Mortgage loans		237			382			224			288			170
Other investments		54			58			31			16			23
Investment purchases
Fixed income securities		(6,084	)		(5,849	)		(4,464	)		(5,337	)		(7,008	)
Equity securities		(317	)		(286	)		(95	)		(162	)		(128	)
Limited partnership interests		(255	)		(292	)		(568	)		(346	)		(318	)
Mortgage loans		(75	)		(53	)		(205	)		(51	)		(216	)
Other investments		(196	)		(390	)		(32	)		(80	)		(163	)
Change in short-term investments, net		(808	)		586			(892	)		(13	)		(379	)
Change in other investments, net		34			64			51			(48	)		(9	)
Purchases of property and equipment, net		(60	)		(109	)		(60	)		(65	)		(51	)
Disposition of operations		-			-			13			1			(1	)
Net cash provided by investing activities		136			1,084			145			273			79
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		492			-			-			-			493
Repayment of long-term debt		-			(1	)		-			(1	)		(350	)
Contractholder fund deposits		591			587			566			520			485
Contractholder fund withdrawals		(1,259	)		(1,581	)		(1,273	)		(1,366	)		(1,299	)
Dividends paid		-			(212	)		(107	)		(109	)		(106	)
Treasury stock purchases		(739	)		(184	)		(146	)		(274	)		(309	)
Shares reissued under equity incentive plans, net		17			25			34			11			15
Excess tax benefits on share-based payment arrangements		23			3			3			5			(1	)
Other		13			7			5			(32	)		(13	)
Net cash used in financing activities		(862	)		(1,356	)		(918	)		(1,246	)		(1,085	)
NET INCREASE (DECREASE) IN CASH		14			164			71			(6	)		(199	)
CASH AT BEGINNING OF PERIOD		806			642			571			577			776
CASH AT END OF PERIOD	$	820		$	806		$	642		$	571		$	577

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, 2013												Acquisition Costs as of March 31, 2013
								Accrection
								relating to realized
								capital gains and						DAC before				DAC after
								losses and		Effect of				impact of		Impact of		impact of
		Beginning		Acquisition		Amortization		valuation changes on		unrealized		Ending		unrealized		unrealized		unrealized
		balance		costs		before		embedded derivatives		capital gains		balance		capital gains		capital gains		capital gains
		Dec. 31, 2012		deferred		adjustments (1) (2)		that are not hedged (2)		and losses		March 31, 2013		and losses		and losses		and losses
Property-Liability	$	1,396	$	873	$	(871)	$	-	$	-	$	1,398	$	1,398	$	-	$	1,398
Allstate Financial:
Traditional life and accident and health		671		39		(29)		-		-		681		681		-		681
Interest-sensitive life		1,529		58		(44)		-		6		1,549		1,889		(340)		1,549
Fixed annuity		25		5		(3)		1		4		32		62		(30)		32
Subtotal		2,225		102		(76)		1		10		2,262		2,632		(370)		2,262
Consolidated	$	3,621	$	975	$	(947)	$	1	$	10	$	3,660	$	4,030	$	(370)	$	3,660

		Change in Deferred Policy Acquisition Costs												Reconciliation of Deferred Policy
		For the three months ended March 31, 2012												Acquisition Costs as of March 31, 2012
								Amortization
								relating to realized
								capital gains and						DAC before				DAC after
								losses and		Effect of				impact of		Impact of		impact of
		Beginning		Acquisition		Amortization		valuation changes on		unrealized		Ending		unrealized		unrealized		unrealized
		balance		costs		before		embedded derivatives		capital gains		balance		capital gains		capital gains		capital gains
		Dec. 31, 2011		deferred		adjustments (1) (2)		that are not hedged (2)		and losses		March 31, 2012		and losses		and losses		and losses
Property-Liability	$	1,348	$	844	$	(878)	$	-	$	-	$	1,314	$	1,314	$	-	$	1,314
Allstate Financial:
Traditional life and accident and health		616		38		(27)		-		-		627		627		-		627
Interest-sensitive life		1,698		42		(47)		(2)		(17)		1,674		1,909		(235)		1,674
Fixed annuity		209		4		(12)		(13)		(87)		101		81		20		101
Subtotal		2,523		84		(86)		(15)		(104)		2,402		2,617		(215)		2,402
Consolidated	$	3,871	$	928	$	(964)	$	(15)	$	(104)	$	3,716	$	3,931	$	(215)	$	3,716

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

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

9

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY RESULTS

($ in millions, except ratios)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Premiums written	$	6,625	$	6,637	$	7,063	$	6,864	$	6,463
Decrease (increase) in unearned premiums		155		120		(411)		(198)		167
Other		(10)		(13)		45		-		-
Premiums earned		6,770		6,744		6,697		6,666		6,630
Claims and claims expense		(4,460)		(5,042)		(4,293)		(4,810)		(4,339)
Amortization of deferred policy acquisition costs		(871)		(870)		(870)		(865)		(878)
Operating costs and expenses		(957)		(939)		(866)		(847)		(884)
Restructuring and related charges		(24)		(9)		(9)		(10)		(6)
Underwriting income (loss) *		458		(116)		659		134		523
Net investment income		341		362		299		352		313
Periodic settlements and accruals on non-hedge derivative instruments		(1)		(2)		(1)		(2)		(1)
Business combination expenses and the amortization of purchased intangible assets		21		25		26		26		47
Income tax expense on operations		(263)		(69)		(316)		(153)		(281)
Operating income		556		200		667		357		601
Realized capital gains and losses, after-tax		73		96		(11)		12		124
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		-		1		1		1
Business combination expenses and the amortization of purchased intangible assets, after-tax		(14)		(16)		(18)		(16)		(31)
Net income	$	616	$	280	$	639	$	354	$	695
Catastrophe losses	$	359	$	1,061	$	206	$	819	$	259
Operating ratios
Claims and claims expense (“loss”) ratio		65.9		74.8		64.1		72.2		65.4
Expense ratio		27.3		26.9		26.1		25.8		26.7
Combined ratio		93.2		101.7		90.2		98.0		92.1
Combined ratio excluding the effect of catastrophes *		87.9		86.0		87.1		85.7		88.2
Effect of catastrophe losses on combined ratio		5.3		15.7		3.1		12.3		3.9
Combined ratio		93.2		101.7		90.2		98.0		92.1
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses and the amortization of purchased intangible assets (“underlying”)		87.7		86.7		87.8		86.3		88.1
Effect of catastrophe losses on combined ratio		5.3		15.7		3.1		12.3		3.9
Effect of prior year reserve reestimates on combined ratio		(0.6)		(2.3)		(2.2)		(2.4)		(3.1)
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		0.5		1.2		1.1		1.4		2.5
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.3		0.4		0.4		0.4		0.7
Combined ratio		93.2		101.7		90.2		98.0		92.1
Effect of restructuring and related charges on combined ratio		0.4		0.1		0.1		0.2		0.1
Effect of Discontinued Lines and Coverages on combined ratio		-		-		0.7		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,
		2013		2012		2012		2012		2012
Property-Liability Underwriting Summary
Allstate Protection	$	462	$	(112)	$	701	$	138	$	526
Discontinued Lines and Coverages		(4)		(4)		(42)		(4)		(3)
Underwriting income (loss)	$	458	$	(116)	$	659	$	134	$	523
Allstate Protection Underwriting Summary
Premiums written	$	6,625	$	6,636	$	7,064	$	6,864	$	6,462
Premiums earned	$	6,770	$	6,745	$	6,696	$	6,666	$	6,630
Claims and claims expense		(4,457)		(5,038)		(4,251)		(4,808)		(4,336)
Amortization of deferred policy acquisition costs		(871)		(870)		(870)		(865)		(878)
Operating costs and expenses		(956)		(940)		(865)		(845)		(884)
Restructuring and related charges		(24)		(9)		(9)		(10)		(6)
Underwriting income (loss)	$	462	$	(112)	$	701	$	138	$	526
Catastrophe losses	$	359	$	1,061	$	206	$	819	$	259
Operating ratios
Loss ratio		65.9		74.7		63.5		72.1		65.4
Expense ratio		27.3		27.0		26.0		25.8		26.7
Combined ratio		93.2		101.7		89.5		97.9		92.1
Effect of catastrophe losses on combined ratio		5.3		15.7		3.1		12.3		3.9
Effect of restructuring and related charges on combined ratio		0.4		0.1		0.1		0.2		0.1
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.3		0.4		0.4		0.4		0.7
Discontinued Lines and Coverages Underwriting Summary
Premiums written	$	-	$	1	$	(1)	$	-	$	1
Premiums earned	$	-	$	(1)	$	1	$	-	$	-
Claims and claims expense		(3)		(4)		(42)		(2)		(3)
Operating costs and expenses		(1)		1		(1)		(2)		-
Underwriting loss	$	(4)	$	(4)	$	(42)	$	(4)	$	(3)
Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio		-		-		0.7		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,
		2013		2012		2012		2012		2012
Allstate brand (1)
Standard auto	$	3,983	$	3,872	$	3,988	$	3,903	$	3,937
Non-standard auto		172		159		176		174		189
Auto		4,155		4,031		4,164		4,077		4,126
Involuntary auto		17		15		17		21		20
Commercial lines		112		112		110		120		112
Homeowners		1,268		1,477		1,686		1,639		1,258
Other personal lines		464		467		508		494		435
		6,016		6,102		6,485		6,351		5,951
Encompass brand
Standard auto		147		153		163		160		142
Involuntary auto		2		1		2		3		2
Homeowners		97		101		108		104		85
Other personal lines		21		23		24		22		20
		267		278		297		289		249
Esurance brand
Standard auto		342		256		282		224		262
Allstate Protection		6,625		6,636		7,064		6,864		6,462
Discontinued Lines and Coverages		-		1		(1)		-		1
Property-Liability	$	6,625	$	6,637	$	7,063	$	6,864	$	6,463
Allstate Protection
Standard auto	$	4,472	$	4,281	$	4,433	$	4,287	$	4,341
Non-standard auto		172		159		176		174		189
Auto		4,644		4,440		4,609		4,461		4,530
Involuntary auto		19		16		19		24		22
Commercial lines		112		112		110		120		112
Homeowners		1,365		1,578		1,794		1,743		1,343
Other personal lines		485		490		532		516		455
	$	6,625	$	6,636	$	7,064	$	6,864	$	6,462
(1) Canada premiums included in Allstate brand	$	235	$	253	$	279	$	291	$	218

12

THE ALLSTATE CORPORATION

ALLSTATE BRAND PREMIUMS WRITTEN (1)

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Allstate Auto Home and Agencies
Standard auto	$	3,931	$	3,833	$	3,932	$	3,828	$	3,887
Non-standard auto		168		155		170		167		185
Auto		4,099		3,988		4,102		3,995		4,072
Involuntary auto		17		15		17		21		20
Homeowners		1,268		1,477		1,686		1,639		1,258
Other personal lines		9		9		12		12		8
		5,393		5,489		5,817		5,667		5,358
Emerging Businesses (2)
Specialty auto (3)	$	56	$	43	$	62	$	82	$	54
Landlord		124		137		140		132		123
Renters		53		52		62		54		50
Condominium		45		47		50		49		41
Other property		100		102		126		136		100
Specialty property		322		338		378		371		314
Consumer household (4)		378		381		440		453		368
Allstate Roadside Services		82		75		74		71		76
Allstate Dealer Services		51		45		44		40		37
Other personal lines (5)		455		458		496		482		427
Commercial lines		112		112		110		120		112
		623		613		668		684		593
Allstate brand (1)
Standard auto	$	3,983	$	3,872	$	3,988	$	3,903	$	3,937
Non-standard auto		172		159		176		174		189
Auto		4,155		4,031		4,164		4,077		4,126
Involuntary auto		17		15		17		21		20
Commercial lines		112		112		110		120		112
Homeowners		1,268		1,477		1,686		1,639		1,258
Other personal lines		464		467		508		494		435
	$	6,016	$	6,102	$	6,485	$	6,351	$	5,951

(1)Allstate brand is comprised of Allstate Auto Home and Agencies and Emerging Businesses.

(2)Emerging Businesses include Consumer Household (specialty auto products including motorcycle, trailer, motor home and off-road vehicle insurance policies and specialty property products including renter, landlord, boat, umbrella, manufactured home and condominium insurance policies), Allstate Roadside Services (roadside assistance products),  Allstate Dealer Services (guaranteed automobile protection and vehicle service products sold primarily through auto dealers), Ivantage (insurance agency) and Commercial Lines (commercial products for small business owners).

(3)Specialty auto is reported in Allstate brand auto.

(4)Consumer household includes specialty auto and specialty property.

(5)Emerging Businesses other personal lines include specialty property, Allstate Roadside Services and Allstate Dealer Services.

13

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

IMPACT OF NET RATE CHANGES APPROVED ON PREMIUMS WRITTEN

	Three months ended			Three months ended			Three months ended
	March 31, 2013 (1)			December 31, 2012			September 30, 2012
	Number of		State	Number of		State	Number of			State
	states	Countrywide (%) (4)	specific (%) (5)	states	Countrywide (%) (4)	specific (%) (5)	states		Countrywide (%) (4)	specific (%) (5)
Allstate brand
Standard auto (2)	12	0.3	1.8	15	0.8	2.9	13		0.3	1.8
Non-standard auto	3	0.1	3.2	4	0.4	5.9	4		0.2	5.8
Auto	15	0.3	1.8	17	0.8	3.0	15		0.3	1.8
Homeowners (3)	16	1.3	4.8	20	2.3	6.2	10		0.8	7.3
Encompass brand
Standard auto	5	0.8	5.6	21	1.7	4.3	3		0.7	4.5
Homeowners	3	1.4	7.0	20	3.0	5.8	5	(6)	0.3	2.5
Esurance brand
Standard auto	11	0.9	4.2	21	2.0	4.4	7		1.2	4.2

	Three months ended			Three months ended			Three months ended
	June 30, 2012			March 31, 2012			December 31, 2011
	Number of		State	Number of		State	Number of			State
	states	Countrywide (%) (4)	specific (%) (5)	states	Countrywide (%) (4)	specific (%) (5)	states		Countrywide (%) (4)	specific (%) (5)
Allstate brand
Standard auto (2)	19	1.5	4.4	10	0.5	5.4	12	(7)	0.7	3.9
Non-standard auto	1	0.3	7.5	4	0.2	1.4	5	(6)	1.1	6.5
Auto	19	1.4	4.4	13	0.5	5.1	16	(6)	0.8	4.0
Homeowners (3)	7	1.2	10.2	13	2.0	7.9	17		2.9	7.8
Encompass brand
Standard auto	14	1.6	4.2	2	0.1	3.2	7		1.8	6.5
Homeowners	14	1.8	5.4	5	0.9	5.3	8		0.8	4.6
Esurance brand
Standard auto	23	(0.1)	(0.1)	6	1.3	8.6	n/a		n/a	n/a

(1)Rate changes include changes approved based on our net cost of reinsurance. These rate changes do not reflect initial rates filed for insurance subsidiaries initially writing business. Based on historical premiums written in those states, rate changes approved for the three month period ending March 31, 2013 are estimated to total $141 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. Rate changes also exclude Canadian operations, specialty auto, and excess and surplus homeowners lines.

(2)Impacts of Allstate brand standard auto effective rate changes as a percentage of total countrywide prior year-end premiums written were 0.5%, 0.6%, 1.1%, 0.9%, 0.4% and 1.2% for the three months ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively.

(3)Impacts of Allstate brand homeowners effective rate changes as a percentage of total countrywide prior year-end premiums written were 1.7%, 1.0%, 0.7%, 2.0%, 3.6% and 2.6% for the three months ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively.

(4)Represents the impact in the states where rate changes were approved during the period as a percentage of total countrywide prior year-end premiums written.

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

(6)Includes Washington, D.C.

(7)Includes the impact of a 8.0% rate increase in Florida and a 1.2% rate increase in New York in the fourth quarter of 2011.

n/aNot available.

14

THE ALLSTATE CORPORATION

ALLSTATE BRAND PROFITABILITY MEASURES

($ in millions, except ratios)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Net premiums written	$	6,016	$	6,102	$	6,485	$	6,351	$	5,951
Net premiums earned
Standard auto	$	3,927	$	3,921	$	3,910	$	3,909	$	3,897
Non-standard auto		167		171		177		184		183
Auto		4,094		4,092		4,087		4,093		4,080
Homeowners		1,516		1,514		1,499		1,487		1,480
Other personal lines		599		600		591		583		583
Total		6,209		6,206		6,177		6,163		6,143
Incurred losses
Standard auto	$	2,670	$	2,988	$	2,617	$	2,734	$	2,713
Non-standard auto		104		104		103		112		123
Auto		2,774		3,092		2,720		2,846		2,836
Homeowners		914		1,045		735		1,218		836
Other personal lines		355		429		416		369		314
Total		4,043		4,566		3,871		4,433		3,986
Expenses
Standard auto	$	1,029	$	1,001	$	977	$	1,000	$	998
Non-standard auto		39		45		43		42		44
Auto		1,068		1,046		1,020		1,042		1,042
Homeowners		376		377		358		342		351
Other personal lines		207		216		182		164		178
Total		1,651		1,639		1,560		1,548		1,571
Underwriting income (loss)
Standard auto	$	228	$	(68)	$	316	$	175	$	186
Non-standard auto		24		22		31		30		16
Auto		252		(46)		347		205		202
Homeowners		226		92		406		(73)		293
Other personal lines		37		(45)		(7)		50		91
Total		515		1		746		182		586
Loss ratio		65.1		73.6		62.7		71.9		64.9
Expense ratio		26.6		26.4		25.2		25.1		25.6
Combined ratio		91.7		100.0		87.9		97.0		90.5
Effect of catastrophe losses on combined ratio		5.5		15.5		3.1		12.9		4.1
Effect of prior year reserve reestimates on combined ratio		(0.6)		(2.2)		(2.9)		(2.5)		(3.3)
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.1		0.1		0.1		0.1		0.1
Effect of advertising expenses on combined ratio		2.7		2.5		2.4		2.9		3.1
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses, and the amortization of purchased intangible assets (“underlying”)		86.2		85.3		86.7		85.1		87.0
Effect of catastrophe losses		5.5		15.5		3.1		12.9		4.1
Effect of prior year non-catastrophe reserve reestimates		(0.1)		(0.9)		(2.0)		(1.1)		(0.7)
Effect of business combination expenses and the amortization of purchased intangible assets		0.1		0.1		0.1		0.1		0.1
Combined ratio		91.7		100.0		87.9		97.0		90.5

15

THE ALLSTATE CORPORATION

ENCOMPASS BRAND PROFITABILITY MEASURES

($ in millions, except ratios)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Net premiums written	$	267	$	278	$	297	$	289	$	249
Net premiums earned
Standard auto	$	155	$	153	$	152	$	153	$	151
Non-standard auto		-		-		-		-		-
Auto		155		153		152		153		151
Homeowners		100		98		96		93		92
Other personal lines		25		24		23		23		23
Total		280		275		271		269		266
Incurred losses
Standard auto	$	117	$	118	$	121	$	125	$	118
Non-standard auto		-		(2)		(2)		-		-
Auto		117		116		119		125		118
Homeowners		62		121		56		62		51
Other personal lines		20		20		13		10		20
Total		199		257		188		197		189
Expenses
Standard auto	$	47	$	47	$	45	$	42	$	43
Non-standard auto		-		1		-		-		-
Auto		47		48		45		42		43
Homeowners		32		31		30		28		28
Other personal lines		8		6		7		7		5
Total		87		85		82		77		76
Underwriting income (loss)
Standard auto	$	(9)	$	(12)	$	(14)	$	(14)	$	(10)
Non-standard auto		-		1		2		-		-
Auto		(9)		(11)		(12)		(14)		(10)
Homeowners		6		(54)		10		3		13
Other personal lines		(3)		(2)		3		6		(2)
Total		(6)		(67)		1		(5)		1
Loss ratio		71.1		93.5		69.4		73.3		71.0
Expense ratio		31.0		30.9		30.2		28.6		28.6
Combined ratio		102.1		124.4		99.6		101.9		99.6
Effect of catastrophe losses on combined ratio		4.6		34.9		5.5		6.7		2.6
Effect of prior year reserve reestimates on combined ratio		(0.7)		(8.4)		(3.7)		(3.7)		(0.8)
Effect of advertising expenses on combined ratio		0.7		0.7		-		0.4		0.8
Combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		97.9		97.1		93.4		97.0		96.6
Effect of catastrophe losses		4.6		34.9		5.5		6.7		2.6
Effect of prior year non-catastrophe reserve reestimates		(0.4)		(7.6)		0.7		(1.8)		0.4
Combined ratio		102.1		124.4		99.6		101.9		99.6

16

THE ALLSTATE CORPORATION

ESURANCE BRAND PROFITABILITY MEASURES AND STATISTICS

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
($ in millions)		2013		2012		2012		2012		2012
Net premiums written	$	342	$	256	$	282	$	224	$	262
Net premiums earned
Standard auto	$	281	$	264	$	248	$	234	$	221
Incurred losses
Standard auto	$	215	$	215	$	192	$	178	$	161
Expenses
Standard auto	$	113	$	95	$	102	$	95	$	121
Underwriting loss	$	(47)	$	(46)	$	(46)	$	(39)	$	(61)
Loss ratio		76.5		81.4		77.4		76.1		72.8
Expense ratio		40.2		36.0		41.1		40.6		54.8
Combined ratio		116.7		117.4		118.5		116.7		127.6
Effect of catastrophe losses on combined ratio		1.1		2.3		0.8		2.6		0.4
Effect of prior year reserve reestimates on combined ratio		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		5.3		7.2		8.1		8.1		18.1
Effect of advertising expenses on combined ratio		16.0		9.5		16.5		16.2		20.4
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses, and the amortization of purchased intangible assets (“underlying”)		110.3		107.9		109.6		106.0		109.1
Effect of catastrophe losses		1.1		2.3		0.8		2.6		0.4
Effect of prior year non-catastrophe reserve reestimates		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets		5.3		7.2		8.1		8.1		18.1
Combined ratio		116.7		117.4		118.5		116.7		127.6
Policies in Force (in thousands)
Standard auto		1,151		1,029		962		892		849
New Issued Applications (in thousands)
Standard auto		222		164		172		130		139
Average Premium - Gross Written ($)
Standard auto		494		484		485		490		508
Renewal Ratio (%)
Standard auto		81.2		80.1		79.7		81.9		80.5
Impact of Esurance brand on Allstate Protection combined ratio		0.7		0.7		0.7		0.6		0.9
Impact of Esurance brand on Allstate Protection expense ratio		1.7		1.4		1.5		1.4		1.8

17

THE ALLSTATE CORPORATION

STANDARD AUTO PROFITABILITY MEASURES

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
($ in millions)		2013		2012		2012		2012		2012
Net premiums written
Allstate brand	$	3,983	$	3,872	$	3,988	$	3,903	$	3,937
Encompass brand		147		153		163		160		142
Esurance brand		342		256		282		224		262
		4,472		4,281		4,433		4,287		4,341
Net premiums earned
Allstate brand	$	3,927	$	3,921	$	3,910	$	3,909	$	3,897
Encompass brand		155		153		152		153		151
Esurance brand		281		264		248		234		221
		4,363		4,338		4,310		4,296		4,269
Incurred losses
Allstate brand	$	2,670	$	2,988	$	2,617	$	2,734	$	2,713
Encompass brand		117		118		121		125		118
Esurance brand		215		215		192		178		161
		3,002		3,321		2,930		3,037		2,992
Expenses
Allstate brand	$	1,029	$	1,001	$	977	$	1,000	$	998
Encompass brand		47		47		45		42		43
Esurance brand		113		95		102		95		121
		1,189		1,143		1,124		1,137		1,162
Underwriting income
Allstate brand	$	228	$	(68)	$	316	$	175	$	186
Encompass brand		(9)		(12)		(14)		(14)		(10)
Esurance brand		(47)		(46)		(46)		(39)		(61)
		172		(126)		256		122		115
Loss ratio
Allstate brand		68.0		76.2		66.9		69.9		69.6
Encompass brand		75.5		77.1		79.6		81.7		78.1
Esurance brand		76.5		81.4		77.4		76.1		72.8
Allstate Protection		68.8		76.6		68.0		70.7		70.1
Expense ratio
Allstate brand		26.2		25.5		25.0		25.6		25.6
Encompass brand		30.3		30.7		29.6		27.5		28.5
Esurance brand		40.2		36.0		41.1		40.6		54.8
Allstate Protection		27.3		26.3		26.1		26.5		27.2
Combined ratio
Allstate brand		94.2		101.7		91.9		95.5		95.2
Encompass brand		105.8		107.8		109.2		109.2		106.6
Esurance brand		116.7		117.4		118.5		116.7		127.6
Allstate Protection		96.1		102.9		94.1		97.2		97.3
Effect of catastrophe losses on combined ratio
Allstate brand		1.1		9.3		1.3		3.9		1.2
Encompass brand		(0.6)		9.8		1.3		2.6		0.7
Esurance brand		1.1		2.3		0.8		2.6		0.4
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(1.6)		(1.7)		(3.2)		(2.0)		(1.2)
Encompass brand		(3.9)		(14.4)		0.7		-		0.7
Esurance brand		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio
Esurance brand		5.3		7.2		8.1		8.1		18.1
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		93.5		94.0		93.7		93.4		94.9
Effect of catastrophe losses on combined ratio		1.1		9.3		1.3		3.9		1.2
Effect of prior year non-catastrophe reserve reestimates on combined ratio		(0.4)		(1.6)		(3.1)		(1.8)		(0.9)
Allstate brand combined ratio		94.2		101.7		91.9		95.5		95.2
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		(1.2)		(0.1)		(0.1)		(0.2)		(0.3)

18

THE ALLSTATE CORPORATION

ALLSTATE BRAND STANDARD AUTO LOSS RATIO OF TOP 5 STATES

	Three months ended
		March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
		2013	2012	2012	2012	2012
Allstate brand standard auto loss ratio (1)
California		72.1	71.2	68.8	71.6	78.4
Florida		69.7	72.5	65.6	66.6	71.3
New York (2)		70.6	135.2	67.8	67.7	65.2
Pennsylvania		70.1	71.0	71.9	70.3	72.7
Texas		65.8	66.8	62.5	81.5	74.5
All other states & Canada		67.9	68.8	67.0	68.7	67.6
Total Allstate brand standard auto		68.0	76.2	66.9	69.9	69.6

(1)Loss ratios include prior year reserve reestimates.

(2)Excluding the impact of Sandy, loss ratio in New York for the three months ended December 31, 2012 was 71.0.

19

THE ALLSTATE CORPORATION

NON-STANDARD AUTO PROFITABILITY MEASURES

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
($ in millions)		2013		2012		2012		2012		2012
Net premiums written
Allstate brand	$	172	$	159	$	176	$	174	$	189
Encompass brand		-		-		-		-		-
		172		159		176		174		189
Net premiums earned
Allstate brand	$	167	$	171	$	177	$	184	$	183
Encompass brand		-		-		-		-		-
		167		171		177		184		183
Incurred losses
Allstate brand	$	104	$	104	$	103	$	112	$	123
Encompass brand		-		(2)		(2)		-		-
		104		102		101		112		123
Expenses
Allstate brand	$	39	$	45	$	43	$	42	$	44
Encompass brand		-		1		-		-		-
		39		46		43		42		44
Underwriting income
Allstate brand	$	24	$	22	$	31	$	30	$	16
Encompass brand		-		1		2		-		-
		24		23		33		30		16
Loss ratio
Allstate brand		62.3		60.8		58.2		60.9		67.2
Encompass brand		-		-		-		-		-
Allstate Protection		62.3		59.6		57.1		60.9		67.2
Expense ratio
Allstate brand		23.3		26.3		24.3		22.8		24.1
Encompass brand		-		-		-		-		-
Allstate Protection		23.3		26.9		24.3		22.8		24.1
Combined ratio
Allstate brand		85.6		87.1		82.5		83.7		91.3
Encompass brand		-		-		-		-		-
Allstate Protection		85.6		86.5		81.4		83.7		91.3
Effect of catastrophe losses on combined ratio
Allstate brand		0.6		0.6		1.1		1.6		-
Encompass brand		-		-		-		-		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(0.6)		(7.0)		(4.5)		(1.6)		-
Encompass brand		-		-		-		-		-

20

THE ALLSTATE CORPORATION

AUTO PROFITABILITY MEASURES

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
($ in millions)		2013		2012		2012		2012		2012
Net premiums written
Allstate brand	$	4,155	$	4,031	$	4,164	$	4,077	$	4,126
Encompass brand		147		153		163		160		142
Esurance brand		342		256		282		224		262
		4,644		4,440		4,609		4,461		4,530
Net premiums earned
Allstate brand	$	4,094	$	4,092	$	4,087	$	4,093	$	4,080
Encompass brand		155		153		152		153		151
Esurance brand		281		264		248		234		221
		4,530		4,509		4,487		4,480		4,452
Incurred losses
Allstate brand	$	2,774	$	3,092	$	2,720	$	2,846	$	2,836
Encompass brand		117		116		119		125		118
Esurance brand		215		215		192		178		161
		3,106		3,423		3,031		3,149		3,115
Expenses
Allstate brand	$	1,068	$	1,046	$	1,020	$	1,042	$	1,042
Encompass brand		47		48		45		42		43
Esurance brand		113		95		102		95		121
		1,228		1,189		1,167		1,179		1,206
Underwriting income
Allstate brand	$	252	$	(46)	$	347	$	205	$	202
Encompass brand		(9)		(11)		(12)		(14)		(10)
Esurance brand		(47)		(46)		(46)		(39)		(61)
		196		(103)		289		152		131
Loss ratio
Allstate brand		67.7		75.6		66.5		69.5		69.5
Encompass brand		75.5		75.8		78.3		81.7		78.1
Esurance brand		76.5		81.4		77.4		76.1		72.8
Allstate Protection		68.6		75.9		67.6		70.3		70.0
Expense ratio
Allstate brand		26.1		25.5		25.0		25.5		25.5
Encompass brand		30.3		31.4		29.6		27.5		28.5
Esurance brand		40.2		36.0		41.1		40.6		54.8
Allstate Protection		27.1		26.4		26.0		26.3		27.1
Combined ratio
Allstate brand		93.8		101.1		91.5		95.0		95.0
Encompass brand		105.8		107.2		107.9		109.2		106.6
Esurance brand		116.7		117.4		118.5		116.7		127.6
Allstate Protection		95.7		102.3		93.6		96.6		97.1
Effect of catastrophe losses on combined ratio
Allstate brand		1.1		8.9		1.2		3.8		1.2
Encompass brand		(0.6)		9.8		1.3		2.6		0.7
Esurance brand		1.1		2.3		0.8		2.6		0.4
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(1.6)		(1.9)		(3.3)		(2.0)		(1.2)
Encompass brand		(3.9)		(15.0)		(0.7)		(0.7)		0.7
Esurance brand		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio
Esurance brand		5.3		7.2		8.1		8.1		18.1

21

THE ALLSTATE CORPORATION

HOMEOWNERS PROFITABILITY MEASURES

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
($ in millions)		2013		2012		2012		2012		2012
Net premiums written
Allstate brand	$	1,268	$	1,477	$	1,686	$	1,639	$	1,258
Encompass brand		97		101		108		104		85
		1,365		1,578		1,794		1,743		1,343
Net premiums earned
Allstate brand	$	1,516	$	1,514	$	1,499	$	1,487	$	1,480
Encompass brand		100		98		96		93		92
		1,616		1,612		1,595		1,580		1,572
Incurred losses
Allstate brand	$	914	$	1,045	$	735	$	1,218	$	836
Encompass brand		62		121		56		62		51
		976		1,166		791		1,280		887
Expenses
Allstate brand	$	376	$	377	$	358	$	342	$	351
Encompass brand		32		31		30		28		28
		408		408		388		370		379
Underwriting income
Allstate brand	$	226	$	92	$	406	$	(73)	$	293
Encompass brand		6		(54)		10		3		13
		232		38		416		(70)		306
Loss ratio
Allstate brand		60.3		69.0		49.0		81.9		56.5
Encompass brand		62.0		123.5		58.3		66.7		55.4
Allstate Protection		60.4		72.3		49.6		81.0		56.4
Expense ratio
Allstate brand		24.8		24.9		23.9		23.0		23.7
Encompass brand		32.0		31.6		31.3		30.1		30.5
Allstate Protection		25.2		25.3		24.3		23.4		24.1
Combined ratio
Allstate brand		85.1		93.9		72.9		104.9		80.2
Encompass brand		94.0		155.1		89.6		96.8		85.9
Allstate Protection		85.6		97.6		73.9		104.4		80.5
Effect of catastrophe losses on combined ratio
Allstate brand		18.7		32.0		7.8		40.2		12.6
Encompass brand		12.0		77.6		13.5		15.1		6.5
Effect of prior year reserve reestimates on combined ratio
Allstate brand		2.6		(5.0)		(4.3)		(3.5)		(7.9)
Encompass brand		1.0		2.0		(8.3)		(4.3)		(2.2)
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		65.8		62.4		66.2		64.6		67.0
Effect of catastrophe losses on combined ratio		18.7		32.0		7.8		40.2		12.6
Effect of prior year non-catastrophe reserve reestimates on combined ratio		0.6		(0.5)		(1.1)		0.1		0.6
Allstate brand combined ratio		85.1		93.9		72.9		104.9		80.2
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		2.0		(4.5)		(3.2)		(3.6)		(8.5)

22

THE ALLSTATE CORPORATION

OTHER PERSONAL LINES PROFITABILITY MEASURES (1)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
($ in millions)		2013		2012		2012		2012		2012
Net premiums written
Allstate brand	$	593	$	594	$	635	$	635	$	567
Encompass brand		23		24		26		25		22
		616		618		661		660		589
Net premiums earned
Allstate brand	$	599	$	600	$	591	$	583	$	583
Encompass brand		25		24		23		23		23
		624		624		614		606		606
Incurred losses
Allstate brand	$	355	$	429	$	416	$	369	$	314
Encompass brand		20		20		13		10		20
		375		449		429		379		334
Expenses
Allstate brand	$	207	$	216	$	182	$	164	$	178
Encompass brand		8		6		7		7		5
		215		222		189		171		183
Underwriting income
Allstate brand	$	37	$	(45)	$	(7)	$	50	$	91
Encompass brand		(3)		(2)		3		6		(2)
		34		(47)		(4)		56		89
Loss ratio
Allstate brand		59.3		71.5		70.4		63.3		53.9
Encompass brand		80.0		83.3		56.5		43.5		87.0
Allstate Protection		60.1		71.9		69.9		62.6		55.1
Expense ratio
Allstate brand		34.5		36.0		30.8		28.1		30.5
Encompass brand		32.0		25.0		30.5		30.4		21.7
Allstate Protection		34.5		35.6		30.8		28.2		30.2
Combined ratio
Allstate brand		93.8		107.5		101.2		91.4		84.4
Encompass brand		112.0		108.3		87.0		73.9		108.7
Allstate Protection		94.6		107.5		100.7		90.8		85.3
Effect of catastrophe losses on combined ratio
Allstate brand		2.7		18.0		3.6		7.2		2.9
Encompass brand		8.0		20.8		-		-		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(2.0)		3.2		2.7		(2.9)		(6.7)
Encompass brand		12.0		(8.3)		(4.3)		(21.7)		(4.3)
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio
Allstate brand		1.0		1.0		1.0		1.2		1.2

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

23

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY POLICIES IN FORCE AND OTHER STATISTICS

		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Policies in Force (in thousands) (1)
Allstate brand
Allstate Auto Home and Agencies
Standard auto		16,850		16,929		16,941		17,046		17,080
Non-standard auto		509		508		528		551		570
Auto		17,359		17,437		17,469		17,597		17,650
Homeowners		5,895		5,974		6,042		6,147		6,259
Canada		1,005		991		975		956		938
Involuntary auto		25		27		28		29		28
Excess and surplus		15		13		12		10		9
		24,299		24,442		24,526		24,739		24,884
Emerging Businesses (2)
Renters		1,304		1,303		1,300		1,283		1,275
Condominium		614		616		615		616		615
Landlord		748		752		754		758		764
Other property		1,209		1,223		1,230		1,238		1,245
Specialty property		3,875		3,894		3,899		3,895		3,899
Specialty auto		1,021		1,018		1,023		1,010		976
Consumer household		4,896		4,912		4,922		4,905		4,875
Commercial lines		286		283		290		283		281
Allstate Roadside Services		1,001		1,009		1,025		1,035		1,045
		6,183		6,204		6,237		6,223		6,201
Total Allstate brand		30,482		30,646		30,763		30,962		31,085
Encompass brand
Standard auto		714		708		697		687		676
Homeowners		333		327		320		314		309
Specialty auto		23		23		22		22		21
Specialty property		117		116		114		112		111
Involuntary auto		4		4		5		5		5
Total Encompass brand		1,191		1,178		1,158		1,140		1,122
Esurance brand
Standard auto		1,151		1,029		962		892		849
Specialty property (3)		7		2		-		-		-
Total Esurance brand		1,158		1,031		962		892		849
Total Policies in Force		32,831		32,855		32,883		32,994		33,056
Other Customer Relationships
Good Hands Roadside Members (in thousands) (4)		1,099		870		758		656		569
Non-Proprietary Premiums
Answer Financial ($ in millions)	$	126	$	114	$	109	$	104	$	115

(1)Policies in Force:  Policy counts are based on items rather than customers.  A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Allstate Dealer Services (guaranteed automobile protection and vehicle service products sold primarily through auto dealers) and Partnership Marketing Group (roadside assistance products) statistics are not included in total policies in force since these are not available.  Additionally, non-proprietary products offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included.

(2)Emerging Businesses policies in force include statistics for Consumer Household (specialty auto products including motorcycle, trailer, motor home and off-road vehicle insurance policies and specialty property products including renter, landlord, boat, umbrella, manufactured home and condominium insurance policies), Commercial Lines (commercial products for small business owners) and Allstate Roadside Services (roadside assistance products sold by Allstate Motor Club).

(3)Specialty property includes renter insurance policies for Esurance.

(4)Membership provides pay on demand access to roadside services.  Fees for three months ended March 31, 2013 were $181 thousand.

24

THE ALLSTATE CORPORATION

ALLSTATE BRAND DOMESTIC OPERATING MEASURES AND STATISTICS (1)

	Three months ended
		March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
		2013	2012	2012	2012	2012
New Issued Applications (in thousands) (2)
Standard auto		497	445	460	458	463
Non-standard auto		73	53	56	58	79
Auto		570	498	516	516	542
Homeowners		113	109	116	116	101
Average Premium - Gross Written ($) (3)
Standard auto		457	455	450	447	447
Non-standard auto		601	605	596	601	598
Auto		462	460	455	452	452
Homeowners		1,115	1,104	1,096	1,080	1,065
Average Premium - Net Earned ($) (4)
Standard auto		439	437	433	433	431
Non-standard auto		550	544	538	545	542
Auto		442	440	436	437	434
Homeowners		983	973	949	925	904
Renewal Ratio (%) (5)
Standard auto		89.3	89.0	89.0	89.0	88.7
Non-standard auto		70.7	70.6	70.1	71.2	69.1
Auto		88.7	88.4	88.3	88.3	88.0
Homeowners		87.0	87.5	87.2	87.0	87.4
Bodily Injury Claim Frequency
(% change year-over-year)
Standard auto		(1.5)	(2.1)	(1.2)	1.9	(2.1)
Non-standard auto		(2.7)	(4.0)	1.3	3.2	(1.0)
Auto		(1.9)	(2.4)	(1.4)	1.6	(2.5)
Property Damage Claim Frequency
(% change year-over-year)
Standard auto		(0.2)	(3.7)	(1.2)	1.4	(4.1)
Non-standard auto		(0.7)	(3.7)	(1.9)	0.9	(1.2)
Auto		(0.4)	(3.9)	(1.4)	1.1	(4.3)
Auto Paid Severity
(% change year-over-year)
Bodily injury		7.4	5.2	6.8	3.4	1.2
Property damage		(1.0)	0.4	3.9	3.0	4.6
Homeowners Excluding Catastrophe Losses
(% change year-over-year)
Claim frequency		1.1	(10.0)	(11.4)	(6.7)	(4.8)
Claim severity		(0.5)	6.0	5.8	2.0	(0.4)

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

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

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

(4)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.

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

25

THE ALLSTATE CORPORATION

HOMEOWNERS SUPPLEMENTAL INFORMATION

($ in millions)

		Three months ended March 31, 2013
										Premium rate changes (3)
Primary Exposure Groupings(1)		Earned premiums		Incurred losses	Loss ratios		Catastrophe losses	Effect of catastrophes on loss ratio	Number of catastrophes	Number of states	Annual impact of rate changes on state specific premiums written
Florida	$	30	$	19	63.3%	$	-	0.0%
Other hurricane exposure states		832		622	74.8%		283	34.0%
Total hurricane exposure states  (2)		862		641	74.4%		283	32.8%		9	4.6%
Other catastrophe exposure states		754		335	44.4%		13	1.7%		8	5.9%
Total	$	1,616	$	976	60.4%	$	296	18.3%	9	17	4.9%

(1) Basis of Presentation

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

(2) Hurricane Exposure States

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

(3) Premium Rate Changes

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

26

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION CATASTROPHE LOSSES BY MARKET SEGMENT

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Allstate brand
Standard auto	$	42	$	365	$	49	$	153	$	48
Non-standard auto		1		1		2		3		-
Auto		43		366		51		156		48
Homeowners		284		485		117		597		186
Other personal lines		16		108		21		42		17
Total Allstate Brand		343		959		189		795		251
Encompass brand
Standard auto		(1)		15		2		4		1
Non-standard auto		-		-		-		-		-
Auto		(1)		15		2		4		1
Homeowners		12		76		13		14		6
Other personal lines		2		5		-		-		-
Total Encompass Brand		13		96		15		18		7
Esurance brand
Standard auto		3		6		2		6		1
Allstate Protection	$	359	$	1,061	$	206	$	819	$	259
Allstate Protection
Standard auto	$	44	$	386	$	53	$	163	$	50
Non-standard auto		1		1		2		3		-
Auto		45		387		55		166		50
Homeowners		296		561		130		611		192
Other personal lines		18		113		21		42		17
	$	359	$	1,061	$	206	$	819	$	259

27

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 combined ratio					Premiums earned		Total catastrophe		Total catastrophe		Effect on the Property-Liability
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year	year-to-date		losses by year		losses by year		combined ratio
2004	1.6	3.8	26.0	6.2	9.5	$	25,989	$	2,468	$	467	1.8
2005	2.5	2.2	69.4	9.6	21.0	27,039		5,674		460		1.7
2006	1.6	3.7	2.5	4.1	3.0	27,369		810		1,044		3.8
2007	2.4	6.3	5.0	7.0	5.2	27,233		1,409		1,336		4.9
2008	8.4	10.3	26.8	3.9	12.4	26,967		3,342		1,876		7.0
2009	7.8	12.5	6.2	5.0	7.9	26,194		2,069		2,159		8.2
2010	10.0	9.8	5.9	8.3	8.5	25,957		2,207		2,272		8.8
2011	5.2	36.2	16.7	1.0	14.7	25,942		3,815		3,298		12.7
2012	3.9	12.3	3.1	15.7	8.8	26,737		2,345		1,324		5.0
2013	5.3	-	-	-	5.3	6,770		359		387		5.7
Average	4.8	10.7	18.1	6.8	10.0							5.9

28

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION CATASTROPHE BY SIZE OF EVENT

($ in millions, except ratios)

Three months ended March 31, 2013
										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	1	11.1			225	62.7		3.3		225
$50 million to $100 million	1	11.1			73	20.3		1.1		73
Less than $50 million	7	77.8			93	25.9		1.4		13
Total	9	100.0	%		391	108.9		5.8		43
Prior year reserve reestimates					(32)	(8.9)		(0.5)
Prior quarter reserve reestimates					-	-		-
Total catastrophe losses				$	359	100.0	%	5.3

29

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

EFFECT OF 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,
		2013		2012		2012		2012		2012
Prior Year Reserve Reestimates (1)
Auto	$	(70)	$	(100)	$	(134)	$	(83)	$	(48)
Homeowners		41		(74)		(72)		(56)		(119)
Other personal lines		(9)		17		15		(22)		(40)
Allstate Protection		(38)		(157)		(191)		(161)		(207)
Discontinued Lines and Coverages		3		3		42		3		3
Property-Liability	$	(35)	$	(154)	$	(149)	$	(158)	$	(204)
Allstate brand (2)	$	(36)	$	(134)	$	(181)	$	(151)	$	(205)
Encompass brand  (2)		(2)		(23)		(10)		(10)		(2)
Esurance brand		-		-		-		-		-
Allstate Protection (2)	$	(38)	$	(157)	$	(191)	$	(161)	$	(207)
Effect of Prior Year Reserve
Reestimates on Combined Ratio (1)(3)
Auto		(1.0)		(1.5)		(2.0)		(1.3)		(0.7)
Homeowners		0.6		(1.1)		(1.1)		(0.8)		(1.8)
Other personal lines		(0.2)		0.3		0.2		(0.3)		(0.6)
Allstate Protection		(0.6)		(2.3)		(2.9)		(2.4)		(3.1)
Discontinued Lines and Coverages		-		-		0.7		-		-
Property-Liability		(0.6)		(2.3)		(2.2)		(2.4)		(3.1)
Allstate brand		(0.5)		(2.0)		(2.7)		(2.3)		(3.1)
Encompass brand		(0.1)		(0.3)		(0.2)		(0.1)		-
Esurance brand		-		-		-		-		-
Allstate Protection		(0.6)		(2.3)		(2.9)		(2.4)		(3.1)

(1)	Favorable reserve reestimates are shown in parentheses.
(2)	Favorable reserve reestimates included in catastrophe losses for Allstate Brand, Encompass Brand and Allstate Protection totaled $31 million, $1 million and $32 million in the three months ended March 31, 2013, respectively, compared to $158 million, $3 million and $161 million for Allstate Brand, Encompass Brand and Allstate Protection in the same period of 2012.
(3)	Calculated using Property-Liability premiums earned for the respective period.

30

THE ALLSTATE CORPORATION

ASBESTOS AND ENVIRONMENTAL RESERVES

($ in millions)

		Three months			Twelve months ended December 31,
		ended
		March 31,
		2013			2012			2011			2010			2009			2008
(net of reinsurance)
Asbestos claims
Beginning reserves	$	1,026		$	1,078		$	1,100		$	1,180		$	1,228		$	1,302
Incurred claims and claims expense		-			26			26			5			(8	)		8
Claims and claims expense paid		(22	)		(78	)		(48	)		(85	)		(40	)		(82	)
Ending reserves	$	1,004		$	1,026		$	1,078		$	1,100		$	1,180		$	1,228
Claims and claims expense paid as a percent of ending reserves		2.2%			7.6%			4.5%			7.7%			3.4%			6.7%
Environmental claims
Beginning reserves	$	193		$	185		$	201		$	198		$	195		$	232
Incurred claims and claims expense		-			22			-			18			13			-
Claims and claims expense paid		(1	)		(14	)		(16	)		(15	)		(10	)		(37	)
Ending reserves	$	192		$	193		$	185		$	201		$	198		$	195
Claims and claims expense paid as a percent of ending reserves		0.5%			7.3%			8.6%			7.5%			5.1%			19.0%

31

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL RESULTS

($ in millions)

		Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Investments	$	56,853	$	56,999	$	58,155	$	57,734	$	57,620
Premiums (1)	$	303	$	299	$	291	$	291	$	287
Contract charges (1)		276		267		272		268		266
Net investment income		635		665		632		663		687
Periodic settlements and accruals on non-hedge derivative instruments		10		10		15		15		15
Contract benefits		(458)		(464)		(453)		(462)		(439)
Interest credited to contractholder funds		(336)		(347)		(357)		(362)		(368)
Amortization of deferred policy acquisition costs		(76)		(71)		(117)		(76)		(86)
Operating costs and expenses		(148)		(152)		(147)		(135)		(142)
Restructuring and related charges		(2)		-		-		-		-
Income tax expense on operations		(60)		(63)		(39)		(64)		(70)
Operating income		144		144		97		138		150
Realized capital gains and losses, after-tax		12		37		(36)		5		(14)
Valuation changes on embedded derivatives that are not hedged, after-tax		(6)		(6)		97		(3)		(6)
DAC and DSI accretion (amortization) relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		1		(4)		(28)		-		(10)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		-		4		-		-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(6)		(7)		(9)		(10)		(10)
Gain on disposition of operations, after-tax		1		2		6		2		2
Net income	$	146	$	166	$	131	$	132	$	112

(1)Allstate Benefits premiums and contract charges increased 11.8% to $170 million in the first quarter of 2013 from $152 million in the first quarter of 2012.

32

ALLSTATE FINANCIAL

RETURN ON ATTRIBUTED EQUITY

($ in millions)

		Twelve months ended
		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013			2012			2012			2012			2012
Return on Attributed Equity
Numerator:
Net income (1)	$	575		$	541		$	510		$	571		$	600
Denominator:
Beginning attributed equity (2)	$	7,475		$	7,230		$	7,044		$	6,868		$	6,568
Ending attributed equity		8,617			8,446			8,291			7,737			7,475
Average attributed equity (3)	$	8,046		$	7,838		$	7,668		$	7,303		$	7,022
Return on attributed equity		7.1	%		6.9	%		6.7	%		7.8	%		8.5	%
Operating Income Return on Attributed Equity
Numerator:
Operating income (1)	$	523		$	529		$	515		$	547		$	544
Denominator:
Beginning attributed equity (2)	$	7,475		$	7,230		$	7,044		$	6,868		$	6,568
Unrealized net capital gains and losses		1,073			842			776			792			656
Adjusted beginning attributed equity		6,402			6,388			6,268			6,076			5,912
Ending attributed equity		8,617			8,446			8,291			7,737			7,475
Unrealized net capital gains and losses		1,702			1,678			1,666			1,240			1,073
Adjusted ending attributed equity		6,915			6,768			6,625			6,497			6,402
Average adjusted attributed equity (3)	$	6,659		$	6,578		$	6,447		$	6,287		$	6,157
Operating income return on attributed equity		7.9	%		8.0	%		8.0	%		8.7	%		8.8	%

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

(2)Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company and the applicable equity for American Heritage Life Investment Corporation.

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

33

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL PREMIUMS AND CONTRACT CHARGES

($ in millions)

		Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
PREMIUMS AND CONTRACT CHARGES - BY PRODUCT
Underwritten Products
Traditional life insurance premiums	$	116	$	123	$	117	$	117	$	113
Accident and health insurance premiums		180		167		164		160		162
Interest-sensitive life insurance contract charges		273		265		267		263		260
		569		555		548		540		535
Annuities
Immediate annuities with life contingencies premiums		7		9		10		14		12
Other fixed annuity contract charges		3		2		5		5		6
		10		11		15		19		18
Total	$	579	$	566	$	563	$	559	$	553
PREMIUMS AND CONTRACT CHARGES - BY DISTRIBUTION CHANNEL
Allstate agencies (1)	$	276	$	278	$	261	$	272	$	266
Workplace enrolling agents		188		180		174		170		170
Other (2)		115		108		128		117		117
Total	$	579	$	566	$	563	$	559	$	553
ISSUED LIFE INSURANCE POLICIES BY DISTRIBUTION CHANNEL(3)
Allstate agencies (1)		36,421		50,428		32,076		30,544		29,714
Other		879		1,006		766		780		876
Total		37,300		51,434		32,842		31,324		30,590
ALLSTATE BENEFITS NEW BUSINESS WRITTEN PREMIUMS (4)	$	52	$	136	$	62	$	59	$	53

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

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

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

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

34

THE ALLSTATE CORPORATION

CHANGE IN CONTRACTHOLDER FUNDS

($ in millions)

		Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Beginning balance	$	39,319	$	40,110	$	40,832	$	41,603	$	42,332
Deposits
Fixed annuities		287		318		272		185		153
Interest-sensitive life insurance		386		357		323		335		332
Total deposits		673		675		595		520		485
Interest credited		350		362		213		369		379
Benefits, withdrawals, maturities and other adjustments
Benefits		(395)		(434)		(341)		(331)		(357)
Surrenders and partial withdrawals		(891)		(1,157)		(941)		(949)		(943)
Maturities of and interest payments on institutional products		(1)		(48)		(1)		(88)		(1)
Contract charges		(277)		(272)		(264)		(266)		(264)
Net transfers from separate accounts		1		4		3		2		2
Other adjustments		28		79		14		(28)		(30)
Total benefits, withdrawals, maturities and other adjustments		(1,535)		(1,828)		(1,530)		(1,660)		(1,593)
Ending balance	$	38,807	$	39,319	$	40,110	$	40,832	$	41,603

35

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL ANALYSIS OF NET INCOME

($ in millions)

		Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Benefit spread
Premiums	$	303	$	299	$	291	$	291	$	287
Cost of insurance contract charges (1)		180		173		180		173		170
Contract benefits excluding the implied interest on immediate annuities with life contingencies (2)		(325)		(331)		(318)		(326)		(305)
Total benefit spread		158		141		153		138		152
Investment spread
Net investment income		635		665		632		663		687
Implied interest on immediate annuities with life contingencies (2)		(133)		(133)		(135)		(136)		(134)
Interest credited to contractholder funds		(345)		(357)		(215)		(366)		(378)
Total investment spread		157		175		282		161		175
Surrender charges and contract maintenance expense fees (1)		96		94		92		95		96
Realized capital gains and losses		19		56		(56)		8		(21)
Amortization of deferred policy acquisition costs		(75)		(77)		(146)		(77)		(101)
Operating costs and expenses		(148)		(152)		(147)		(135)		(142)
Restructuring and related charges		(2)		-		-		-		-
Gain on disposition of operations		2		3		9		3		3
Income tax expense		(61)		(74)		(56)		(61)		(50)
Net income	$	146	$	166	$	131	$	132	$	112
Benefit spread by product group
Life insurance	$	86	$	79	$	90	$	87	$	91
Accident and health insurance		89		82		76		72		73
Annuities		(17)		(20)		(13)		(21)		(12)
Total benefit spread	$	158	$	141	$	153	$	138	$	152
Investment spread by product group
Annuities and institutional products	$	59	$	85	$	39	$	71	$	97
Life insurance		27		21		23		20		18
Accident and health insurance		6		6		7		6		6
Net investment income on investments supporting capital		74		72		64		68		64
Investment spread before valuation changes on embedded derivatives that are not hedged		166		184		133		165		185
Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged		(9)		(9)		149		(4)		(10)
Total investment spread	$	157	$	175	$	282	$	161	$	175
(1) Reconciliation of contract charges
Cost of insurance contract charges	$	180	$	173	$	180	$	173	$	170
Surrender charges and contract maintenance expense fees		96		94		92		95		96
Total contract charges	$	276	$	267	$	272	$	268	$	266
(2) Reconciliation of contract benefits
Contract benefits excluding the implied interest on immediate annuities with life contingencies	$	(325)	$	(331)	$	(318)	$	(326)	$	(305)
Implied interest on immediate annuities with life contingencies		(133)		(133)		(135)		(136)		(134)
Total contract benefits	$	(458)	$	(464)	$	(453)	$	(462)	$	(439)

36

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS

	Three months ended March 31, 2013						Three months ended March 31, 2012
	Weighted average		Weighted average		Weighted average		Weighted average		Weighted average		Weighted average
	investment yield		interest crediting rate		investment spreads		investment yield		interest crediting rate		investment spreads
Interest-sensitive life insurance	5.2	%	3.9	%	1.3	%	5.4	%	4.1	%	1.3	%
Deferred fixed annuities and institutional products	4.6		3.1		1.5		4.5		3.2		1.3
Immediate fixed annuities with and without life contingencies	6.3		6.0		0.3		7.8		6.1		1.7
Investments supporting capital, traditional life and other products	4.0		n/a		n/a		3.9		n/a		n/a

37

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL SUPPLEMENTAL PRODUCT INFORMATION

($ in millions)

		As of March 31, 2013				Twelve months ended March 31, 2013			Twelve months ended
									March		Dec.		Sept.		June		March
				Attributed equity					2013		2012		2012		2012		2012
		Reserves and		excluding unrealized		Operating			Operating income return
		Contractholder funds		capital gains/losses (3)(4)		income (5)			on attributed equity (%)
Underwritten products
Life insurance	$	14,419	$	2,797	$	231			8.9	%	9.0	%	9.0	%	10.8	%	11.3	%
Accident and health insurance		2,045		646		87			13.5		12.7		16.6		16.3		15.9
Subtotal		16,464		3,443		318			9.8		9.7		10.6		11.9		12.2
Annuities and institutional products:
Deferred Annuities		21,917		1,870		205			10.9		9.8		9.1		9.2		9.2
Immediate Annuities:
Sub-standard structured settlements and group pension terminations (1)		5,140		1,018		(19)			(1.9)		(0.7)		(0.7)		(0.7)		(1.0)
Standard structured settlements and SPIA (2)		8,169		523		25			5.1		9.0		5.3		5.3		5.7
Subtotal		13,309		1,541		6			0.4		2.4		1.1		1.1		0.9
Institutional products		1,884		61		(6)
Subtotal		37,110		3,472		205			6.0		6.5		5.7		5.9		5.9
Total Allstate Financial	$	53,574	$	6,915	$	523			7.9		8.0		8.0		8.7		8.8
		Three months ended March 31, 2013
		Life		Accident and		Annuities and		Allstate
		insurance		health insurance		institutional products		Financial
Operating income	$	71	$	24	$	49	$	144
Realized capital gains and losses, after-tax		(8)		-		20		12
Valuation changes on embedded derivatives that are not hedged, after-tax		-		-		(6)		(6)
DAC and DSI accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		-		-		1		1
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		-		-		(6)		(6)
Gain on disposition of operations, after-tax		-		-		1		1
Net income	$	63	$	24	$	59	$	146

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

38

THE ALLSTATE CORPORATION

CORPORATE AND OTHER RESULTS

($ in millions)

	Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012
Net investment income	$	7	$	6	$	9	$	11	$	11
Operating costs and expenses		(95)		(96)		(90)		(107)		(86)
Income tax benefit on operations		35		35		34		33		34
Operating loss		(53)		(55)		(47)		(63)		(41)
Realized capital gains and losses, after-tax		-		3		-		-		-
Net loss	$	(53)	$	(52)	$	(47)	$	(63)	$	(41)

39

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,
		2013		2012		2012		2012		2012		2013		2012		2012		2012		2012
Fixed income securities, at fair value:
Tax-exempt	$	6,470	$	7,419	$	8,002	$	7,915	$	7,634	$	2	$	3	$	28	$	29	$	37
Taxable		22,635		22,262		21,787		21,578		21,272		45,176		45,793		46,317		46,390		46,232
Equity securities, at fair value		4,037		3,671		3,660		3,470		3,636		402		366		216		211		211
Mortgage loans		488		493		498		494		494		5,946		6,077		6,406		6,434		6,673
Limited partnership interests		2,994		2,991		3,106		2,877		2,889		1,933		1,924		1,860		1,806		1,729
Short-term, at fair value		1,171		912		756		699		608		1,391		907		1,320		893		681
Other		600		467		200		253		192		2,003		1,929		2,008		1,971		2,057
Total	$	38,395	$	38,215	$	38,009	$	37,286	$	36,725	$	56,853	$	56,999	$	58,155	$	57,734	$	57,620
Fixed income securities, at amortized cost:
Tax-exempt	$	6,168	$	7,061	$	7,616	$	7,592	$	7,350	$	2	$	3	$	28	$	29	$	36
Taxable		21,721		21,311		20,752		20,878		20,742		41,582		42,043		42,495		43,464		43,936
Ratio of fair value to amortized cost		104.4%		104.6%		105.0%		103.6%		102.9%		108.6%		108.9%		109.0%		106.7%		105.2%
Equity securities, at cost	$	3,449	$	3,250	$	3,271	$	2,370	$	3,270	$	328	$	327	$	158	$	160	$	160
Short-term, at amortized cost		1,171		912		756		699		608		1,391		907		1,320		893		681
	CORPORATE AND OTHER										CONSOLIDATED
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		March 31,		Dec. 31,		Sept 30,		June 30,		March 31,
		2013		2012		2012		2012		2012		2013		2012		2012		2012		2012
Fixed income securities, at fair value:
Tax-exempt	$	604	$	616	$	724	$	775	$	748	$	7,076	$	8,038	$	8,754	$	8,719	$	8,419
Taxable		919		924		871		1,239		1,300		68,730		68,979		68,975		69,207		68,804
Equity securities, at fair value		-		-		-		-		-		4,439		4,037		3,876		3,681		3,847
Mortgage loans		-		-		-		-		-		6,434		6,570		6,904		6,928		7,167
Limited partnership interests		4		7		8		11		19		4,931		4,922		4,974		4,694		4,637
Short-term, at fair value		607		517		749		275		597		3,169		2,336		2,825		1,867		1,886
Other		-		-		-		-		-		2,603		2,396		2,208		2,224		2,249
Total	$	2,134	$	2,064	$	2,352	$	2,300	$	2,664	$	97,382	$	97,278	$	98,516	$	97,320	$	97,009
Fixed income securities, at amortized cost:
Tax-exempt	$	572	$	580	$	684	$	739	$	714	$	6,742	$	7,644	$	8,328	$	8,360	$	8,100
Taxable		912		917		857		1,223		1,282		64,215		64,271		64,104		65,565		65,960
Ratio of fair value to amortized cost		102.6%		102.9%		103.5%		102.7%		102.6%		106.8%		107.1%		107.3%		105.4%		104.3%
Equity securities, at cost	$	-	$	-	$	-	$	-	$	-	$	3,777	$	3,577	$	3,429	$	2,530	$	3,430
Short-term, at amortized cost		607		517		749		275		597		3,169		2,336		2,825		1,867		1,886

40

THE ALLSTATE CORPORATION

INVESTMENT PORTFOLIO DETAILS

($ in millions)

		Financial statement classification as of March 31, 2013
								Limited
		Fixed income		Equity		Mortgage		partnership		Short-
		securities		securities		loans		interests		term		Other		Total
Infrastructure and real assets
Infrastructure and real assets - debt (1)	$	14,825	$	-	$	-	$	-	$	-	$	-	$	14,825
Infrastructure and real assets - equity		-		368		-		523		-		-		891
		14,825		368		-		523		-		-		15,716
Real estate
Real estate - debt		4,131		-		6,434		-		-		-		10,565
Real estate - equity		-		224		-		1,635		-		122		1,981
Tax credit funds		-		-		-		665		-		-		665
		4,131		224		6,434		2,300		-		122		13,211
Consumer goods (cyclical and non-cyclical) (1)		11,418		744		-		-		-		-		12,162
Banking & financial services
Banking		3,840		174		-		-		-		-		4,014
Financial services (1)		4,243		249		-		-		-		-		4,492
Credit card and student loan ABS		621		-		-		-		-		-		621
Consumer auto ABS		557		-		-		-		-		-		557
		9,261		423		-		-		-		-		9,684
Municipal - General obligation, revenue and taxable		8,687		-		-		-		-		-		8,687
Government & agencies
U.S. government and agencies		4,257		-		-		-		811		-		5,068
Foreign government		1,915		-		-		-		-		-		1,915
		6,172		-		-		-		811		-		6,983
Technology and communications
Communications		3,420		161		-		-		-		-		3,581
Technology		2,587		290		-		-		-		-		2,877
		6,007		451		-		-		-		-		6,458
Capital goods		5,496		243		-		-		-		-		5,739
Basic & other industies
Basic industry		3,067		151		-		-		-		-		3,218
Other industries (1)		1,166		47		-		-		-		-		1,213
		4,233		198		-		-		-		-		4,431
Transportation		2,707		64		-		-		-		-		2,771
ABS other		2,419		-		-		-		-		-		2,419
Private equity		-		-		-		1,900		-		-		1,900
Emerging markets
Fixed income funds		-		806		-		-		-		-		806
Foreign government (2)		450		-		-		-		-		-		450
Equity index based funds		-		401		-		-		-		-		401
		450		1,207		-		-		-		-		1,657
Other equity market index based funds		-		517		-		-		-		-		517
Hedge funds		-		-		-		208		-		-		208
Other (3)		-		-		-		-		2,358		2,481		4,839
Total investments	$	75,806	$	4,439	$	6,434	$	4,931	$	3,169	$	2,603	$	97,382

(1)	Includes municipal bonds
(2)	Includes emerging market soverign debt of $416 million.
(3)	Other includes derivatives, policy loans, agent loans, bank loans and short-term investments.

41

THE ALLSTATE CORPORATION

LIMITED PARTNERSHIP INVESTMENTS

($ in millions)

	As of or three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2012		2012		2012		2012		2011		2011		2011		2011
Investment position
Accounting basis
Cost method	$	1,425	$	1,406	$	1,456	$	1,363	$	1,278	$	1,569	$	1,445	$	1,408	$	1,383
Equity method		3,506		3,516		3,518		3,331		3,359		3,128		2,962		2,992		2,694
Total	$	4,931	$	4,922	$	4,974	$	4,694	$	4,637	$	4,697	$	4,407	$	4,400	$	4,077
Cost method-fair value (1)	$	1,748	$	1,714	$	1,756	$	1,656	$	1,534	$	1,838	$	1,768	$	1,704	$	1,625
Underlying investment
Private equity / debt funds	$	2,423	$	2,351	$	2,300	$	2,072	$	1,995	$	1,896	$	1,714	$	1,692	$	1,660
Real estate funds		1,635		1,563		1,524		1,358		1,230		1,099		983		904		685
Other (2)		873		1,008		1,150		1,264		1,412		1,702		1,710		1,804		1,732
Total	$	4,931	$	4,922	$	4,974	$	4,694	$	4,637	$	4,697	$	4,407	$	4,400	$	4,077
Segment
Property-Liability	$	2,994	$	2,991	$	3,106	$	2,877	$	2,889	$	3,055	$	2,863	$	2,913	$	2,684
Allstate Financial		1,933		1,924		1,860		1,806		1,729		1,612		1,508		1,449		1,358
Corporate and Other		4		7		8		11		19		30		36		38		35
Total	$	4,931	$	4,922	$	4,974	$	4,694	$	4,637	$	4,697	$	4,407	$	4,400	$	4,077
Total Income (3)
Accounting basis
Cost method	$	26	$	58	$	17	$	23	$	13	$	27	$	33	$	18	$	10
Equity method (3)		81		52		5		84		96		32		9		55		63
Total	$	107	$	110	$	22	$	107	$	109	$	59	$	42	$	73	$	73
Underlying investment
Private equity / debt funds	$	68	$	83	$	18	$	73	$	72	$	31	$	39	$	51	$	28
Real estate funds		34		36		17		39		31		43		27		19		9
Other (2)		5		(9)		(13)		(5)		6		(15)		(24)		3		36
Total	$	107	$	110	$	22	$	107	$	109	$	59	$	42	$	73	$	73
Segment
Property-Liability	$	77	$	68	$	11	$	68	$	41	$	45	$	13	$	27	$	50
Allstate Financial		30		42		11		39		67		16		29		43		23
Corporate and Other		-		-		-		-		1		(2)		-		3		-
Total	$	107	$	110	$	22	$	107	$	109	$	59	$	42	$	73	$	73

(1)	The fair value of cost method limited partnerships is determined using reported net asset values of the underlying funds.
(2)	Includes hedge funds and tax credit funds.
(3)	Income from EMA limited partnerships is reported in net investment income in 2013 and 2012 and realized capital gains and losses in 2011.

42

THE ALLSTATE CORPORATION

UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE

($ in millions)

		March 31, 2013					December 31, 2012					September 30, 2012
		Unrealized net			Fair value		Unrealized net			Fair value		Unrealized net			Fair value
		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of
		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)
Fixed income securities
U.S. government and agencies	$	297	$	4,257	107.5	$	326	$	4,713	107.4	$	371	$	4,772	108.4
Municipal		929		11,862	108.5		930		13,069	107.7		922		13,970	107.1
Corporate		3,300		49,567	107.1		3,594		48,537	108.0		3,810		48,154	108.6
Foreign government		200		2,365	109.2		227		2,517	109.9		240		2,255	111.9
Asset-backed securities (“ABS”)		18		3,597	100.5		1		3,624	100.0		(30)		3,673	99.2
Residential mortgage-backed securities (“RMBS”)		65		2,750	102.4		32		3,032	101.1		4		3,348	100.1
Commercial mortgage-backed securities (“CMBS”)		36		1,381	102.7		(12)		1,498	99.2		(25)		1,530	98.4
Redeemable preferred stock		4		27	117.4		4		27	117.4		5		27	122.7
Total fixed income securities		4,849		75,806	106.8		5,102		77,017	107.1		5,297		77,729	107.3
Equity securities		662		4,439	117.5		460		4,037	112.9		447		3,876	113.0
Short-term investments		-		3,169	100.0		-		2,336	100.0		-		2,825	100.0
Derivatives		(19)		223	n/a		(22)		133	n/a		(19)		251	n/a
EMA limited partnership interests (2)		8		n/a	n/a		7		n/a	n/a		6		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	5,500	$	83,637	107.0	$	5,547	$	83,523	107.1	$	5,731	$	84,681	107.3
Amounts recognized for:
Insurance reserves (3)		(623)					(771)					(876)
DAC and DSI (4)		(404)					(412)					(420)
Amounts recognized		(1,027)					(1,183)					(1,296)
Deferred income taxes		(1,568)					(1,530)					(1,555)
Unrealized net capital gains and losses, after-tax	$	2,905				$	2,834				$	2,880
		June 30, 2012					March 31, 2012					December 31, 2011
		Unrealized net			Fair value		Unrealized net			Fair value		Unrealized net			Fair value
		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of		capital gains		Fair	as a percent of
		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)		and losses		value	amortized cost (1)
Fixed income securities
U.S. government and agencies	$	374	$	5,246	107.7	$	282	$	5,541	105.4	$	349	$	6,315	105.8
Municipal		805		13,892	106.2		644		13,614	105.0		607		14,241	104.5
Corporate		3,025		47,254	106.8		2,512		46,331	105.7		2,364		43,581	105.7
Foreign government		227		2,169	111.7		195		1,989	110.9		215		2,081	111.5
ABS		(105)		3,949	97.4		(130)		4,242	97.0		(214)		3,966	94.9
RMBS		(212)		3,675	94.5		(231)		3,728	94.2		(411)		4,121	90.9
CMBS		(115)		1,716	93.7		(111)		1,753	94.0		(178)		1,784	90.9
Redeemable preferred stock		2		25	108.7		2		25	108.7		2		24	109.1
Total fixed income securities		4,001		77,926	105.4		3,163		77,223	104.3		2,734		76,113	103.7
Equity securities		251		3,681	107.3		417		3,847	112.2		160		4,363	103.8
Short-term investments		-		1,867	100.0		-		1,886	100.0		-		1,291	100.0
Derivatives		(16)		187	n/a		(21)		273	n/a		(17)		168	n/a
EMA limited partnership interests (2)		4		n/a	n/a		1		n/a	n/a		2		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	4,240	$	83,661	105.3	$	3,560	$	83,229	104.5	$	2,879	$	81,935	103.6
Amounts recognized for:
Insurance reserves (3)		(700)					(443)					(594)
DAC and DSI (4)		(352)					(230)					(124)
Amounts recognized		(1,052)					(673)					(718)
Deferred income taxes		(1,118)					(1,013)					(761)
Unrealized net capital gains and losses, after-tax	$	2,070				$	1,874				$	1,400

(1)	The comparison of percentages from period to period may be distorted by investment transactions such as sales, purchases and impairment write-downs.
(2)	Unrealized net capital gains and losses for limited partnership interest represent the Company’s share of Equity Method of Accounting (“EMA”) limited partnerships’ other comprehensive income.  Fair value and amortized cost are not applicable.
(3)	The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency.  Although we evaluate premium deficiencies on the combined performance of our life insurance and immediate annuities with life contingencies, the adjustment primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.
(4)	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.

43

THE ALLSTATE CORPORATION

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,
		2013			2012			2012			2012			2012
NET INVESTMENT INCOME
Fixed income securities	$	762		$	793		$	817		$	818		$	806
Equity securities		25			53			29			24			21
Mortgage loans		98			97			92			92			93
Limited partnership interests		107			110			22			107			109
Short-term		2			2			2			1			1
Other		37			35			33			34			30
Sub-total		1,031			1,090			995			1,076			1,060
Less:  Investment expense		(48)			(57)			(55)			(50)			(49)
Net investment income	$	983		$	1,033		$	940		$	1,026		$	1,011
PRE-TAX YIELDS (1)
Fixed income securities		4.3	%		4.4	%		4.5	%		4.4	%		4.4	%
Equity securities		2.8			6.1			3.4			2.8			2.2
Mortgage loans		6.0			5.7			5.4			5.2			5.2
Limited partnership interests		8.7			8.9			1.8			9.2			9.3
Total portfolio		4.5			4.7			4.3			4.6			4.6
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(10)		$	(54)		$	(43)		$	(49)		$	(39)
Change in intent write-downs		(27)			-			(3)			(1)			(44)
Net other-than-temporary impairment
losses recognized in earnings		(37)			(54)			(46)			(50)			(83)
Sales		172			261			(24)			70			229
Valuation of derivative instruments		(4)			(12)			-			(10)			11
Settlements of derivative instruments		-			9			(2)			17			11
Total	$	131		$	204		$	(72)		$	27		$	168
TOTAL RETURN ON INVESTMENT PORTFOLIO (2)		1.2	%		1.1	%		2.4	%		1.8	%		2.0	%
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	91.8		$	92.2		$	92.9		$	93.2		$	93.1

(1)Pre-tax yields are calculated as annualized investment income before investment expense (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)Total return on investment portfolio is calculated from GAAP results including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans and cost method limited partnerships, divided by the average fair value balances.

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

44

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,
		2013			2012			2012			2012			2012
NET INVESTMENT INCOME
Fixed income securities:
Tax-exempt	$	61		$	71		$	81		$	82		$	87
Taxable		188			188			194			192			178
Equity securities		23			49			28			22			19
Mortgage loans		5			5			5			5			6
Limited partnership interests (1)		77			68			11			68			41
Short-term		1			2			-			1			1
Other		8			5			4			3			2
Subtotal		363			388			323			373			334
Less:  Investment expense		(22)			(26)			(24)			(21)			(21)
Net investment income	$	341		$	362		$	299		$	352		$	313
Net investment income, after-tax	$	241		$	258		$	220		$	254		$	232
PRE-TAX YIELDS (2)
Fixed income securities:
Tax-exempt		3.7	%		3.9	%		4.2	%		4.4	%		4.6	%
Equivalent yield for tax-exempt		5.4			5.7			6.1			6.4			6.7
Taxable		3.5			3.6			3.7			3.7			3.6
Equity securities		2.8			6.1			3.3			2.7			2.1
Mortgage loans		4.3			4.1			4.3			4.2			4.5
Limited partnership interests		10.4			8.9			1.5			9.5			5.5
Total portfolio		4.0			4.3			3.6			4.2			3.8
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
Fixed income securities:
Tax-exempt	$	47		$	23		$	8		$	(4)		$	25
Taxable		43			98			1			15			(5)
Equity securities		28			25			(14)			13			159
Limited partnership interests		5			1			-			1			11
Derivatives and other		(11)			(4)			(11)			(6)			(1)
Total	$	112		$	143		$	(16)		$	19		$	189
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(8)		$	(41)		$	(31)		$	(43)		$	(19)
Change in intent write-downs		(20)			-			(2)			(1)			(28)
Net other-than-temporary impairment
losses recognized in earnings		(28)			(41)			(33)			(44)			(47)
Sales		151			187			27			60			237
Valuation of derivative instruments		-			(2)			3			1			3
Settlements of derivative instruments		(11)			(1)			(13)			2			(4)
Total	$	112		$	143		$	(16)		$	19		$	189
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	36.5		$	36.3		$	36.1		$	35.8		$	35.4

(1)         As of March 31, 2013, Property-Liability has commitments to invest in additional limited partnership interests totaling $1.02 billion. 

(2)         Pre-tax yields are calculated as annualized investment income before investment expense (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.

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

45

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,
		2013			2012			2012			2012			2012
NET INVESTMENT INCOME
Fixed income securities	$	506		$	527		$	532		$	534		$	531
Equity securities		2			4			1			2			2
Mortgage loans		93			92			87			87			87
Limited partnership interests (1)		30			42			11			39			67
Short-term		1			-			1			-			-
Other		28			29			29			29			27
Subtotal		660			694			661			691			714
Less:  Investment expense		(25)			(29)			(29)			(28)			(27)
Net investment income	$	635		$	665		$	632		$	663		$	687
Net investment income, after-tax	$	424		$	440		$	420		$	437		$	455
PRE-TAX YIELDS (2)
Fixed income securities		4.8	%		5.0	%		4.9	%		4.9	%		4.8	%
Equity securities		2.6			6.2			4.5			5.2			3.9
Mortgage loans		6.2			5.9			5.5			5.3			5.2
Limited partnership interests		6.1			8.9			2.4			8.8			16.0
Total portfolio		5.0			5.2			4.9			5.0			5.2
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
Fixed income securities	$	(18)		$	54		$	(59)		$	(5)		$	(49)
Equity securities		1			1			(1)			-			-
Mortgage loans		31			3			(3)			9			(1)
Limited partnership interests		-			(1)			-			2			(1)
Derivatives and other		5			(1)			7			2			30
Total	$	19		$	56		$	(56)		$	8		$	(21)
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(2)		$	(13)		$	(12)		$	(6)		$	(20)
Change in intent write-downs		(7)			-			(1)			-			(16)
Net other-than-temporary impairment
losses recognized in earnings		(9)			(13)			(13)			(6)			(36)
Sales		21			69			(51)			10			(8)
Valuation of derivative instruments		(4)			(10)			(3)			(11)			8
Settlements of derivative instruments		11			10			11			15			15
Total	$	19		$	56		$	(56)		$	8		$	(21)
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	53.2		$	53.7		$	54.5		$	55.0		$	55.3

(1)As of March 31, 2013, Allstate Financial has commitments to invest in additional limited partnership interests totaling $946 million. 

(2)Pre-tax yields are calculated as annualized investment income before investment expense (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. 

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

46

THE ALLSTATE CORPORATION

INVESTMENT RESULTS

($ in millions)

	As of or three months ended
		March 31,			Dec. 31,		Sept. 30,		June 30,			March 31,			Dec. 31,		Sept. 30,		June 30,		March 31,
		2013			2012		2012		2012			2012			2011		2011		2011		2011
Consolidated investment portfolio
Core debt (1)	$	87,890		$	88,194	$	89,558	$	88,836		$	88,390		$	86,481	$	88,889	$	89,861	$	91,015
Equity/owned (2)		9,492			9,084		8,958		8,484			8,619			9,137		8,636		9,428		8,596
Total	$	97,382		$	97,278	$	98,516	$	97,320		$	97,009		$	95,618	$	97,525	$	99,289	$	99,611
Consolidated portfolio total return (3)
Core debt		0.8	%		0.8	%	2.2	%	1.8	%		1.4	%		1.5	%	1.8	%	2.0	%	1.1	%
Equity/owned		0.4			0.3		0.2		-			0.6			0.3		(0.7)		0.2		0.4
Consolidated portfolio total return
Income		1.0	%		1.1	%	1.0	%	1.0	%		1.0	%		1.0	%	1.0	%	1.0	%	1.0	%
Valuation		0.2			-		1.4		0.8			1.0			0.8		0.1		1.2		0.5
Consolidated net investment income
Core debt	$	847		$	867	$	885	$	891		$	878		$	899	$	936	$	966	$	950
Equity/owned		136			166		55		135			133			76		58		54		32
Total	$	983		$	1,033	$	940	$	1,026		$	1,011		$	975	$	994	$	1,020	$	982
Consolidated core debt pre-tax yield (4)		4.3	%		4.4	%	4.4	%	4.4	%		4.4	%		4.4	%	4.5	%	4.5	%	4.4	%
Property-Liability net investment income
Core debt excluding prepayment premiums and litigation proceeds	$	224		$	234	$	251	$	258		$	252		$	253	$	263	$	271	$	260
Prepayment premiums and litigation proceeds		15			10		7		3			-			-		-		-		-
Total core debt		239			244		258		261			252			253		263		271		260
Equity/owned		102			118		41		91			61			56		35		39		24
Total		341			362		299		352			313			309		298		310		284
Less: prepayment premiums and litigation proceeds		15			10		7		3			-			-		-		-		-
Total excluding prepayment premiums and litigation proceeds	$	326		$	352	$	292	$	349		$	313		$	309	$	298	$	310	$	284
Property-Liability core debt pre-tax yield		3.5	%		3.6	%	3.8	%	3.8	%		3.8	%		3.9	%	4.0	%	4.1	%	4.0	%
Property-Liability core debt pre-tax yield excluding prepayment premiums and litigation proceeds		3.3	%		3.5	%	3.7	%	3.8	%		3.8	%		3.9	%	4.0	%	4.1	%	4.0	%
Allstate Financial net investment income
Core debt excluding prepayment premiums and litigation proceeds	$	574		$	590	$	601	$	612		$	616		$	636	$	659	$	679	$	676
Prepayment premiums and litigation proceeds		27			27		17		7			-			-		-		-		-
Total core debt		601			617		618		619			616			636		659		679		676
Equity/owned		34			48		14		44			71			20		23		15		8
Total		635			665		632		663			687			656		682		694		684
Less: prepayment premiums and litigation proceeds		27			27		17		7			-			-		-		-		-
Total excluding prepayment premiums and litigation proceeds	$	608		$	638	$	615	$	656		$	687		$	656	$	682	$	694	$	684
Allstate Financial core debt pre-tax yield		4.9	%		5.0	%	4.9	%	4.9	%		4.8	%		4.8	%	4.9	%	4.9	%	4.8	%
Allstate Financial core debt pre-tax yield excluding prepayment premiums and litigation proceeds		4.7	%		4.8	%	4.8	%	4.8	%		4.8	%		4.8	%	4.9	%	4.9	%	4.8	%

(1)Includes fixed income securities, mortgage loans, short-term and other investments.

(2)Includes limited partnership interests, equity securities and real estate.

(3)Total return on investment portfolio is calculated from GAAP results including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans and cost method limited partnerships, divided by the average fair value balances.

(4)Pre-tax core debt yield is calculated as annualized core debt investment income before investment expense divided by the average of core debt investment balances at the end of each quarter during the year.  Core debt investment balances, for purposes of the pre-tax yield calculation, exclude unrealized capital gains and losses.

47

Definitions of Non-GAAP Measures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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