Exhibit 99.2

THE ALLSTATE CORPORATION

Investor Supplement

Second 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 - Second 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 Common Share	5
	Return on Common Shareholders’ Equity	6
	Debt to Capital	7
	Statements of Cash Flows	8
	Analysis of Deferred Policy Acquisition Costs	9-10
Property-Liability Operations
	Property-Liability Results	11
	Underwriting Results by Area of Business	12
	Premiums Written by Market Segment	13
	Allstate Brand Premiums Written	14
	Impact of Net Rate Changes Approved on Premiums Written	15
	Allstate Brand Profitability Measures	16
	Encompass Brand Profitability Measures	17
	Esurance Brand Profitability Measures and Statistics	18
	Standard Auto Profitability Measures	19
	Allstate Brand Standard Auto Loss Ratio of Top 5 States	20
	Non-standard Auto Profitability Measures	21
	Auto Profitability Measures	22
	Homeowners Profitability Measures	23
	Other Personal Lines Profitability Measures	24
	Property-Liability Policies in Force and Other Statistics	25
	Allstate Brand Domestic Operating Measures and Statistics	26
	Homeowners Supplemental Information	27
	Allstate Protection Catastrophe Losses by Market Segment	28
	Effect of Catastrophe Losses on the Combined Ratio	29
	Allstate Protection Catastrophe by Size of Event	30
	Prior Year Reserve Reestimates	31
	Asbestos and Environmental Reserves	32
Allstate Financial Operations
	Allstate Financial Results	33
	Return on Attributed Equity	34
	Premiums and Contract Charges	35
	Change in Contractholder Funds	36
	Analysis of Net Income	37
	Allstate Financial Weighted Average Investment Spreads	38
	Allstate Financial Supplemental Product Information	39
	Allstate Financial Insurance Policies and Annuities in Force	40
Corporate and Other Results		41
Investments
	Investments	42
	Investment Portfolio Details	43
	Limited Partnership Investments	44
	Unrealized Net Capital Gains and Losses on Security Portfolio by Type	45
	Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	46
	Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	47
	Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	48
	Investment Results	49
Definitions of Non-GAAP Measures		50

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

	Three months ended																			Six months ended
		June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			June 30,			June 30,
		2013			2013			2012			2012			2012			2012			2013			2012
Revenues
Property-liability insurance premiums	$	6,862		$	6,770		$	6,744		$	6,697		$	6,666		$	6,630		$	13,632		$	13,296
Life and annuity premiums and contract charges		579			579			566			563			559			553			1,158			1,112
Net investment income		984			983			1,033			940			1,026			1,011			1,967			2,037
Realized capital gains and losses:
Total other-than-temporary impairment losses		(55	)		(27	)		(44	)		(39	)		(69	)		(87	)		(82	)		(156	)
Portion of loss recognized in other comprehensive income		(5	)		(10	)		(10	)		(7	)		19			4			(15	)		23
Net other-than-temporary impairment losses recognized in earnings		(60	)		(37	)		(54	)		(46	)		(50	)		(83	)		(97	)		(133	)
Sales and other realized capital gains and losses		422			168			258			(26	)		77			251			590			328
Total realized capital gains and losses		362			131			204			(72	)		27			168			493			195
Total revenues		8,787			8,463			8,547			8,128			8,278			8,362			17,250			16,640
Costs and expenses
Property-liability insurance claims and claims expense		4,741			4,460			5,042			4,293			4,810			4,339			9,201			9,149
Life and annuity contract benefits		471			458			464			453			462			439			929			901
Interest credited to contractholder funds		311			345			357			215			366			378			656			744
Amortization of deferred policy acquisition costs		961			946			947			1,016			942			979			1,907			1,921
Operating costs and expenses		1,090			1,102			1,095			1,010			996			1,017			2,192			2,013
Restructuring and related charges		20			26			9			9			10			6			46			16
Loss on extinguishment of debt		480			-			-			-			-			-			480			-
Interest expense		99			98			92			93			93			95			197			188
Total costs and expenses		8,173			7,435			8,006			7,089			7,679			7,253			15,608			14,932
Gain on disposition of operations		-			2			3			9			3			3			2			6
Income from operations before income tax expense		614			1,030			544			1,048			602			1,112			1,644			1,714
Income tax expense		180			321			150			325			179			346			501			525
Net income		434			709			394			723			423			766			1,143			1,189
Preferred stock dividends		-			-			-			-			-			-			-			-
Net income available to common shareholders	$	434		$	709		$	394		$	723		$	423		$	766		$	1,143		$	1,189
Earnings per common share: (1)
Net income available to common shareholders per common share - Basic	$	0.93		$	1.49		$	0.82		$	1.49		$	0.86		$	1.54		$	2.42		$	2.40
Weighted average common shares - Basic		468.3			475.4			482.2			485.9			490.6			498.7			471.9			494.9
Net income available to common shareholders per common share - Diluted	$	0.92		$	1.47		$	0.81		$	1.48		$	0.86		$	1.53		$	2.39		$	2.39
Weighted average common shares - Diluted		473.8			480.8			487.0			489.9			493.8			501.5			477.3			497.9
Cash dividends declared per common share	$	0.25		$	0.25		$	0.22		$	0.22		$	0.22		$	0.22		$	0.50		$	0.44

(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													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Contribution to income
Operating income before the impact of restructuring and related charges	$	542	$	664	$	295	$	723	$	438	$	714	$	1,206	$	1,152
Restructuring and related charges, after-tax		(13)		(17)		(6)		(6)		(6)		(4)		(30)		(10)
Operating income *		529		647		289		717		432		710		1,176		1,142
Realized capital gains and losses, after-tax		234		85		136		(47)		17		110		319		127
Valuation changes on embedded derivatives that are not hedged, after-tax		3		(6)		(6)		97		(3)		(6)		(3)		(9)
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(4)		1		(4)		(28)		-		(10)		(3)		(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		(3)		(5)		(7)		(8)		(9)		(9)		(8)		(18)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(13)		(14)		(16)		(18)		(16)		(31)		(27)		(47)
Gain on disposition of operations, after-tax		-		1		2		6		2		2		1		4
Loss on extinguishment of debt, after-tax		(312)		-		-		-		-		-		(312)		-
Net income available to common shareholders	$	434	$	709	$	394	$	723	$	423	$	766	$	1,143	$	1,189
Income per common share - Diluted (1)
Operating income before the impact of restructuring and related charges	$	1.14	$	1.38	$	0.61	$	1.48	$	0.89	$	1.42	$	2.53	$	2.31
Restructuring and related charges, after-tax		(0.02)		(0.03)		(0.02)		(0.02)		(0.02)		-		(0.07)		(0.02)
Operating income		1.12		1.35		0.59		1.46		0.87		1.42		2.46		2.29
Realized capital gains and losses, after-tax		0.50		0.18		0.28		(0.09)		0.04		0.22		0.67		0.26
Valuation changes on embedded derivatives that are not hedged, after-tax		0.01		(0.02)		(0.01)		0.20		(0.01)		(0.01)		(0.01)		(0.02)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(0.01)		-		(0.01)		(0.06)		-		(0.02)		(0.01)		(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)		(0.01)		(0.02)		(0.02)		(0.02)		(0.04)
Business combination expenses and the amortization of purchased intangible assets, after-tax		(0.03)		(0.03)		(0.03)		(0.04)		(0.03)		(0.06)		(0.05)		(0.09)
Gain on disposition of operations, after-tax		-		-		-		0.01		0.01		-		-		0.01
Loss on extinguishment of debt, after-tax		(0.66)		-		-		-		-		-		(0.65)		-
Net income available to common shareholders	$	0.92	$	1.47	$	0.81	$	1.48	$	0.86	$	1.53	$	2.39	$	2.39
Weighted average common shares - Diluted		473.8		480.8		487.0		489.9		493.8		501.5		477.3		497.9

(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													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Property-Liability
Property-Liability insurance premiums	$	6,862	$	6,770	$	6,744	$	6,697	$	6,666	$	6,630	$	13,632	$	13,296
Net investment income		343		341		362		299		352		313		684		665
Realized capital gains and losses		305		112		143		(16)		19		189		417		208
Total Property-Liability revenues		7,510		7,223		7,249		6,980		7,037		7,132		14,733		14,169
Allstate Financial
Life and annuity premiums and contract charges		579		579		566		563		559		553		1,158		1,112
Net investment income		633		635		665		632		663		687		1,268		1,350
Realized capital gains and losses		57		19		56		(56)		8		(21)		76		(13)
Total Allstate Financial revenues		1,269		1,233		1,287		1,139		1,230		1,219		2,502		2,449
Corporate and Other
Service fees (1)		2		1		1		1		1		1		3		2
Net investment income		8		7		6		9		11		11		15		22
Realized capital gains and losses		-		-		5		-		-		-		-		-
Total Corporate and Other revenues before reclassification of services fees		10		8		12		10		12		12		18		24
Reclassification of service fees (1)		(2)		(1)		(1)		(1)		(1)		(1)		(3)		(2)
Total Corporate and Other revenues		8		7		11		9		11		11		15		22
Consolidated revenues	$	8,787	$	8,463	$	8,547	$	8,128	$	8,278	$	8,362	$	17,250	$	16,640

(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)

		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,			June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
		2013		2013		2012		2012		2012			2013		2013		2012		2012		2012
Assets											Liabilities
Investments											Reserve for property-liability insurance
Fixed income securities, at fair value											claims and claims expense	$	20,989	$	20,920	$	21,288	$	20,197	$	20,395
(amortized cost $68,475, $70,957,											Reserve for life-contingent contract benefits		14,242		14,767		14,895		14,900		14,640
$71,915, $72,432 and $73,925)	$	71,039	$	75,806	$	77,017	$	77,729	$	77,926	Contractholder funds		36,357		38,807		39,319		40,110		40,832
Equity securities, at fair value											Unearned premiums		10,510		10,218		10,375		10,494		10,085
(cost $4,237, $3,777, $3,577,											Claim payments outstanding		745		757		797		763		813
$3,429 and $3,430)		4,505		4,439		4,037		3,876		3,681	Deferred income taxes		250		782		597		689		53
Mortgage loans		6,413		6,434		6,570		6,904		6,928	Other liabilities and accrued expenses		6,055		6,436		6,429		6,121		6,394
Limited partnership interests		4,941		4,931		4,922		4,974		4,694	Short-term debt		500		-		-		-		-
Short-term, at fair value											Long-term debt		5,475		6,556		6,057		6,057		6,058
(amortized cost $2,646, $3,169,											Separate Accounts		6,488		6,750		6,610		6,820		6,790
$2,336, $2,825 and $1,867)		2,646		3,169		2,336		2,825		1,867	Total liabilities		101,611		105,993		106,367		106,151		106,060
Other		2,771		2,603		2,396		2,208		2,224
Total investments		92,315		97,382		97,278		98,516		97,320	Equity
											Preferred stock and additional capital paid-in,
											11,500 shares outstanding as of June 30, 2013 and none outstanding as of all other periods
											presented		278		-		-		-		-
											Common stock, 465 million,468 million, 479
											million, 483 million and 486 million shares
											outstanding		9		9		9		9		9
											Additional capital paid-in		3,105		3,028		3,162		3,154		3,154
											Retained income		34,691		34,375		33,783		33,496		32,880
											Deferred ESOP expense		(39)		(39)		(41)		(41)		(41)
											Treasury stock, at cost (435 million, 432
											million, 421 million, 417 million and 414
											million shares)		(18,225)		(18,033)		(17,508)		(17,368)		(17,272)
											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		36		30		(11)		(42)		(105)
											Other unrealized net capital gains and losses		1,794		3,543		3,614		3,765		2,859
Cash		634		820		806		642		571	Unrealized adjustment to DAC, DSI and
Premium installment receivables, net		5,116		5,066		5,051		5,108		4,929	insurance reserves		(179)		(668)		(769)		(843)		(684)
Deferred policy acquisition costs		3,914		3,660		3,621		3,578		3,644	Total unrealized net capital gains and losses		1,651		2,905		2,834		2,880		2,070
Reinsurance recoverables, net (1)		8,346		8,316		8,767		7,278		7,120	Unrealized foreign currency translation
Accrued investment income		773		792		781		835		846	adjustments		37		58		70		70		58
Property and equipment, net		971		998		989		928		909	Unrecognized pension and other
Goodwill		1,239		1,239		1,240		1,242		1,242	postretirement benefit cost		(1,638)		(1,684)		(1,729)		(1,363)		(1,383)
Other assets		1,684		1,589		1,804		2,041		2,164	Total accumulated other
Separate Accounts		6,488		6,750		6,610		6,820		6,790	comprehensive income		50		1,279		1,175		1,587		745
											Total shareholders’ equity		19,869		20,619		20,580		20,837		19,475
Total assets	$	121,480	$	126,612	$	126,947	$	126,988	$	125,535	Total liabilities and shareholders’ equity	$	121,480	$	126,612	$	126,947	$	126,988	$	125,535

(1)      Reinsurance recoverables of unpaid losses related to Property-Liability were $3,613 million, $3,568 million, $4,010 million, $2,651 million and $2,544 million as of June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively.

4

THE ALLSTATE CORPORATION

BOOK VALUE PER COMMON SHARE

($ in millions, except per share data )

		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
		2013		2013		2012		2012		2012
Book value per common share
Numerator:
Common shareholders’ equity (1)	$	19,591	$	20,619	$	20,580	$	20,837	$	19,475
Denominator:
Common shares outstanding and dilutive potential common shares outstanding		470.6		474.4		485.5		488.7		490.2
Book value per common share	$	41.63	$	43.46	$	42.39	$	42.64	$	39.73
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities *
Numerator:
Common shareholders’ equity	$	19,591	$	20,619	$	20,580	$	20,837	$	19,475
Unrealized net capital gains and losses on fixed income securities		1,489		2,486		2,549		2,602		1,919
Adjusted common shareholders’ equity	$	18,102	$	18,133	$	18,031	$	18,235	$	17,556
Denominator:
Common shares outstanding and dilutive potential common shares outstanding		470.6		474.4		485.5		488.7		490.2
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities	$	38.47	$	38.22	$	37.14	$	37.31	$	35.81

(1)Excludes $278 million of equity related to preferred stock.

5

THE ALLSTATE CORPORATION

RETURN ON COMMON SHAREHOLDERS’ EQUITY

($ in millions)

	Twelve months ended
		June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013			2013			2012			2012			2012			2012
Return on Common Shareholders’ Equity
Numerator:
Net income available to common shareholders (1)	$	2,260		$	2,249		$	2,306		$	2,624		$	2,076		$	1,029
Denominator:
Beginning common shareholders’ equity	$	19,475		$	19,182		$	18,298		$	17,732		$	18,382		$	18,898
Ending common shareholders’ equity		19,591			20,619			20,580			20,837			19,475			19,182
Average common shareholders’ equity (2)	$	19,533		$	19,901		$	19,439		$	19,285		$	18,929		$	19,040
Return on common shareholders’ equity		11.6	%		11.3	%		11.9	%		13.6	%		11.0	%		5.4	%
Operating Income Return on Common Shareholders’ Equity *
Numerator:
Operating income (1)	$	2,182		$	2,085		$	2,148		$	2,594		$	1,957		$	878
Denominator:
Beginning common shareholders’ equity	$	19,475		$	19,182		$	18,298		$	17,732		$	18,382		$	18,898
Unrealized net capital gains and losses		2,070			1,874			1,400			1,065			1,475			1,072
Adjusted beginning common shareholders’ equity		17,405			17,308			16,898			16,667			16,907			17,826
Ending common shareholders’ equity		19,591			20,619			20,580			20,837			19,475			19,182
Unrealized net capital gains and losses		1,651			2,905			2,834			2,880			2,070			1,874
Adjusted ending common shareholders’ equity		17,940			17,714			17,746			17,957			17,405			17,308
Average adjusted common shareholders’ equity (2)	$	17,673		$	17,511		$	17,322		$	17,312		$	17,156		$	17,567
Operating income return on common shareholders’ equity		12.3	%		11.9	%		12.4	%		15.0	%		11.4	%		5.0	%

(1)Net income available to common shareholders and operating income reflect a trailing twelve-month period.

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

6

THE ALLSTATE CORPORATION

DEBT TO CAPITAL

($ in millions)

		June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013			2013			2012			2012			2012			2012
Debt
Short-term debt	$	500		$	-		$	-		$	-		$	-		$	-
Long-term debt		5,475			6,556			6,057			6,057			6,058			6,058
Total debt	$	5,975		$	6,556		$	6,057		$	6,057		$	6,058		$	6,058
Capital resources
Debt	$	5,975		$	6,556		$	6,057		$	6,057		$	6,058		$	6,058
Shareholders’ equity
Preferred stock and additional capital paid-in		278			-			-			-			-			-
Common stock		9			9			9			9			9			9
Additional capital paid-in		3,105			3,028			3,162			3,154			3,154			3,151
Retained income		34,691			34,375			33,783			33,496			32,880			32,565
Deferred ESOP expense		(39)			(39)			(41)			(41)			(41)			(41)
Treasury stock		(18,225)			(18,033)			(17,508)			(17,368)			(17,272)			(17,034)
Unrealized net capital gains and losses		1,651			2,905			2,834			2,880			2,070			1,874
Unrealized foreign currency translation adjustments		37			58			70			70			58			65
Unrecognized pension and other postretirement benefit cost		(1,638)			(1,684)			(1,729)			(1,363)			(1,383)			(1,407)
Total shareholders’ equity		19,869			20,619			20,580			20,837			19,475			19,182
Total capital resources	$	25,844		$	27,175		$	26,637		$	26,894		$	25,533		$	25,240
Ratio of debt to shareholders’ equity		30.1	%		31.8	%		29.4	%		29.1	%		31.1	%		31.6	%
Ratio of debt to capital resources		23.1	%		24.1	%		22.7	%		22.5	%		23.7	%		24.0	%

7

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	434	$	709	$	394	$	723	$	423	$	766	$	1,143	$	1,189
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items		93		87		95		92		105		96		180		201
Realized capital gains and losses		(362)		(131)		(204)		72		(27)		(168)		(493)		(195)
Loss on extinguishment of debt		480		-		-		-		-		-		480		-
Gain on disposition of operations		-		(2)		(3)		(9)		(3)		(3)		(2)		(6)
Interest credited to contractholder funds		311		345		357		215		366		378		656		744
Changes in:
Policy benefits and other insurance reserves		(93)		(514)		983		(392)		(31)		(346)		(607)		(377)
Unearned premiums		311		(146)		(115)		394		207		(180)		165		27
Deferred policy acquisition costs		(77)		(30)		(31)		7		(46)		52		(107)		6
Premium installment receivables, net		(59)		(22)		53		(169)		(28)		19		(81)		(9)
Reinsurance recoverables, net		(79)		406		(1,421)		(166)		(30)		57		327		27
Income taxes		6		277		29		328		8		333		283		341
Other operating assets and liabilities		(152)		(239)		299		(251)		23		(197)		(391)		(174)
Net cash provided by operating activities		813		740		436		844		967		807		1,553		1,774
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales
Fixed income securities		4,987		5,474		4,920		4,034		4,229		5,689		10,461		9,918
Equity securities		1,532		210		150		70		216		1,059		1,742		1,275
Limited partnership interests		278		160		331		271		393		403		438		796
Mortgage loans		18		2		3		-		5		6		20		11
Other investments		23		15		44		16		52		36		38		88
Investment collections
Fixed income securities		1,913		1,745		1,525		1,751		1,175		966		3,658		2,141
Mortgage loans		238		237		382		224		288		170		475		458
Other investments		117		54		58		31		16		23		171		39
Investment purchases
Fixed income securities		(4,553)		(6,084)		(5,849)		(4,464)		(5,337)		(7,008)		(10,637)		(12,345)
Equity securities		(1,693)		(317)		(286)		(95)		(162)		(128)		(2,010)		(290)
Limited partnership interests		(222)		(255)		(292)		(568)		(346)		(318)		(477)		(664)
Mortgage loans		(239)		(75)		(53)		(205)		(51)		(216)		(314)		(267)
Other investments		(342)		(196)		(390)		(32)		(80)		(163)		(538)		(243)
Change in short-term investments, net		385		(808)		586		(892)		(13)		(379)		(423)		(392)
Change in other investments, net		57		34		64		51		(48)		(9)		91		(57)
Purchases of property and equipment, net		17		(60)		(109)		(60)		(65)		(51)		(43)		(116)
Disposition of operations		-		-		-		13		1		(1)		-		-
Net cash provided by investing activities		2,516		136		1,084		145		273		79		2,652		352
CASH FLOWS FROM FINANCING ACTIVITIES
Change in short-term debt		500		-		-		-		-		-		500		-
Proceeds from issuance of long-term debt		989		492		-		-		-		493		1,481		493
Repayment of long-term debt		(2,540)		-		(1)		-		(1)		(350)		(2,540)		(351)
Proceeds from issuance of preferred stock		278		-		-		-		-		-		278		-
Contractholder fund deposits		528		591		587		566		520		485		1,119		1,005
Contractholder fund withdrawals		(3,014)		(1,259)		(1,581)		(1,273)		(1,366)		(1,299)		(4,273)		(2,665)
Dividends paid on common stock		(119)		-		(212)		(107)		(109)		(106)		(119)		(215)
Treasury stock purchases		(158)		(739)		(184)		(146)		(274)		(309)		(897)		(583)
Shares reissued under equity incentive plans, net		43		17		25		34		11		15		60		26
Excess tax benefits on share-based payment arrangements		6		23		3		3		5		(1)		29		4
Other		(28)		13		7		5		(32)		(13)		(15)		(45)
Net cash used in financing activities		(3,515)		(862)		(1,356)		(918)		(1,246)		(1,085)		(4,377)		(2,331)
NET (DECREASE) INCREASE IN CASH		(186)		14		164		71		(6)		(199)		(172)		(205)
CASH AT BEGINNING OF PERIOD		820		806		642		571		577		776		806		776
CASH AT END OF PERIOD	$	634	$	820	$	806	$	642	$	571	$	577	$	634	$	571

8

THE ALLSTATE CORPORATION

ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS

($ in millions)

	Change in Deferred Policy Acquisition Costs For the three months ended June 30, 2013
								Amortization
								relating to realized
								capital gains and
								losses and			Effect of
		Beginning		Acquisition		Amortization		valuation changes on			unrealized		Ending
		balance		costs		before		embedded derivatives			capital gains		balance
		March 31, 2013		deferred		adjustments (1) (2)			that are not hedged (2)		and losses		June 30, 2013
Property-Liability	$	1,398	$	953	$	(890)	$		-	$	-	$	1,461
Allstate Financial:
Traditional life and accident and health		681		39		(26)			-		-		694
Interest-sensitive life		1,549		37		(35)			(3)		159		1,707
Fixed annuity		32		7		(4)			(3)		20		52
Subtotal		2,262		83		(65)			(6)		179		2,453
Consolidated	$	3,660	$	1,036	$	(955)	$		(6)	$	179	$	3,914

	Change in Deferred Policy Acquisition Costs For the three months ended June 30, 2012
								Amortization
								relating to realized
								capital gains and
								losses and			Effect of
		Beginning		Acquisition		Amortization		valuation changes on			unrealized		Ending
		balance		costs		before		embedded derivatives			capital gains		balance
		March 31, 2012		deferred		adjustments (1) (2)			that are not hedged (2)		and losses		June 30, 2012
Property-Liability	$	1,314	$	899	$	(865)	$		-	$	-	$	1,348
Allstate Financial:
Traditional life and accident and health		627		36		(23)			-		-		640
Interest-sensitive life		1,674		46		(46)			(2)		(74)		1,598
Fixed annuity		101		6		(7)			1		(43)		58
Subtotal		2,402		88		(76)			(1)		(117)		2,296
Consolidated	$	3,716	$	987	$	(941)	$		(1)	$	(117)	$	3,644

(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

ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS

($ in millions)

	Change in Deferred Policy Acquisition Costs													Reconciliation of Deferred Policy
	For the six months ended June 30, 2013													Acquisition Costs as of June 30, 2013
								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, 2012		deferred		adjustments (1) (2)		that are not hedged (2)		and losses		June 30, 2013		and losses		and losses		and losses
Property-Liability	$	1,396	$	1,826	$	(1,761)	$	-	$	-	$	1,461	$	1,461	$	-	$	1,461
Allstate Financial:
Traditional life and accident and health		671		78		(55)		-		-		694		694		-		694
Interest-sensitive life		1,529		95		(79)		(3)		165		1,707		1,888		(181)		1,707
Fixed annuity		25		12		(7)		(2)		24		52		62		(10)		52
Subtotal		2,225		185		(141)		(5)		189		2,453		2,644		(191)		2,453
Consolidated	$	3,621	$	2,011	$	(1,902)	$	(5)	$	189	$	3,914	$	4,105	$	(191)	$	3,914
	Change in Deferred Policy Acquisition Costs													Reconciliation of Deferred Policy
	For the six months ended June 30, 2012													Acquisition Costs as of June 30, 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		June 30, 2012		and losses		and losses		and losses
Property-Liability	$	1,348	$	1,743	$	(1,743)	$	-	$	-	$	1,348	$	1,348	$	-	$	1,348
Allstate Financial:
Traditional life and accident and health		616		74		(50)		-		-		640		640		-		640
Interest-sensitive life		1,698		88		(93)		(4)		(91)		1,598		1,907		(309)		1,598
Fixed annuity		209		10		(19)		(12)		(130)		58		81		(23)		58
Subtotal		2,523		172		(162)		(16)		(221)		2,296		2,628		(332)		2,296
Consolidated	$	3,871	$	1,915	$	(1,905)	$	(16)	$	(221)	$	3,644	$	3,976	$	(332)	$	3,644

(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.

10

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY RESULTS

($ in millions, except ratios)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Premiums written	$	7,151	$	6,625	$	6,637	$	7,063	$	6,864	$	6,463	$	13,776	$	13,327
Decrease (increase) in unearned premiums		(293)		155		120		(411)		(198)		167		(138)		(31)
Other		4		(10)		(13)		45		-		-		(6)		-
Premiums earned		6,862		6,770		6,744		6,697		6,666		6,630		13,632		13,296
Claims and claims expense		(4,741)		(4,460)		(5,042)		(4,293)		(4,810)		(4,339)		(9,201)		(9,149)
Amortization of deferred policy acquisition costs		(890)		(871)		(870)		(870)		(865)		(878)		(1,761)		(1,743)
Operating costs and expenses		(943)		(957)		(939)		(866)		(847)		(884)		(1,900)		(1,731)
Restructuring and related charges		(19)		(24)		(9)		(9)		(10)		(6)		(43)		(16)
Underwriting income (loss) *		269		458		(116)		659		134		523		727		657
Net investment income		343		341		362		299		352		313		684		665
Periodic settlements and accruals on non-hedge derivative instruments		(2)		(1)		(2)		(1)		(2)		(1)		(3)		(3)
Business combination expenses and the amortization of purchased intangible assets		20		21		25		26		26		47		41		73
Income tax expense on operations		(197)		(263)		(69)		(316)		(153)		(281)		(460)		(434)
Operating income		433		556		200		667		357		601		989		958
Realized capital gains and losses, after-tax		197		73		96		(11)		12		124		270		136
Loss on disposition of operations, after-tax		(1)		-		-		-		-		-		(1)		-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		1		-		1		1		1		2		2
Business combination expenses and the amortization of purchased intangible assets, after-tax		(13)		(14)		(16)		(18)		(16)		(31)		(27)		(47)
Net income available to common shareholders	$	617	$	616	$	280	$	639	$	354	$	695	$	1,233	$	1,049
Catastrophe losses	$	647	$	359	$	1,061	$	206	$	819	$	259	$	1,006	$	1,078
Operating ratios
Claims and claims expense (“loss”) ratio		69.1		65.9		74.8		64.1		72.2		65.4		67.5		68.8
Expense ratio		27.0		27.3		26.9		26.1		25.8		26.7		27.2		26.3
Combined ratio		96.1		93.2		101.7		90.2		98.0		92.1		94.7		95.1
Combined ratio excluding the effect of catastrophes *		86.7		87.9		86.0		87.1		85.7		88.2		87.3		87.0
Effect of catastrophe losses on combined ratio		9.4		5.3		15.7		3.1		12.3		3.9		7.4		8.1
Combined ratio		96.1		93.2		101.7		90.2		98.0		92.1		94.7		95.1
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses and the amortization of purchased intangible assets (“underlying”)		86.9		87.7		86.7		87.8		86.3		88.1		87.3		87.2
Effect of catastrophe losses on combined ratio		9.4		5.3		15.7		3.1		12.3		3.9		7.4		8.1
Effect of prior year reserve reestimates on combined ratio		(0.8)		(0.6)		(2.3)		(2.2)		(2.4)		(3.1)		(0.7)		(2.7)
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		0.3		0.5		1.2		1.1		1.4		2.5		0.4		1.9
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.3		0.3		0.4		0.4		0.4		0.7		0.3		0.6
Combined ratio		96.1		93.2		101.7		90.2		98.0		92.1		94.7		95.1
Effect of restructuring and related charges on combined ratio		0.3		0.4		0.1		0.1		0.2		0.1		0.3		0.1
Effect of Discontinued Lines and Coverages on combined ratio		0.1		-		-		0.7		0.1		-		0.1		0.1

11

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Property-Liability Underwriting Summary
Allstate Protection	$	273	$	462	$	(112)	$	701	$	138	$	526	$	735	$	664
Discontinued Lines and Coverages		(4)		(4)		(4)		(42)		(4)		(3)		(8)		(7)
Underwriting income (loss)	$	269	$	458	$	(116)	$	659	$	134	$	523	$	727	$	657
Allstate Protection Underwriting Summary
Premiums written	$	7,151	$	6,625	$	6,636	$	7,064	$	6,864	$	6,462	$	13,776	$	13,326
Premiums earned	$	6,862	$	6,770	$	6,745	$	6,696	$	6,666	$	6,630	$	13,632	$	13,296
Claims and claims expense		(4,738)		(4,457)		(5,038)		(4,251)		(4,808)		(4,336)		(9,195)		(9,144)
Amortization of deferred policy acquisition costs		(890)		(871)		(870)		(870)		(865)		(878)		(1,761)		(1,743)
Operating costs and expenses		(942)		(956)		(940)		(865)		(845)		(884)		(1,898)		(1,729)
Restructuring and related charges		(19)		(24)		(9)		(9)		(10)		(6)		(43)		(16)
Underwriting income (loss)	$	273	$	462	$	(112)	$	701	$	138	$	526	$	735	$	664
Catastrophe losses	$	647	$	359	$	1,061	$	206	$	819	$	259	$	1,006	$	1,078
Operating ratios
Loss ratio		69.0		65.9		74.7		63.5		72.1		65.4		67.4		68.8
Expense ratio		27.0		27.3		27.0		26.0		25.8		26.7		27.2		26.2
Combined ratio		96.0		93.2		101.7		89.5		97.9		92.1		94.6		95.0
Effect of catastrophe losses on combined ratio		9.4		5.3		15.7		3.1		12.3		3.9		7.4		8.1
Effect of restructuring and related charges on combined ratio		0.3		0.4		0.1		0.1		0.2		0.1		0.3		0.1
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		0.3		0.3		0.4		0.4		0.4		0.7		0.3		0.6
Discontinued Lines and Coverages
Underwriting Summary
Premiums written	$	-	$	-	$	1	$	(1)	$	-	$	1	$	-	$	1
Premiums earned	$	-	$	-	$	(1)	$	1	$	-	$	-	$	-	$	-
Claims and claims expense		(3)		(3)		(4)		(42)		(2)		(3)		(6)		(5)
Operating costs and expenses		(1)		(1)		1		(1)		(2)		-		(2)		(2)
Underwriting loss	$	(4)	$	(4)	$	(4)	$	(42)	$	(4)	$	(3)	$	(8)	$	(7)
Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio		0.1		-		-		0.7		0.1		-		0.1		0.1

12

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY PREMIUMS WRITTEN BY MARKET SEGMENT

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Allstate brand (1)
Standard auto	$	4,012	$	3,983	$	3,872	$	3,988	$	3,903	$	3,937	$	7,995	$	7,840
Non-standard auto		158		172		159		176		174		189		330		363
Auto		4,170		4,155		4,031		4,164		4,077		4,126		8,325		8,203
Involuntary auto		13		17		15		17		21		20		30		41
Commercial lines		121		112		112		110		120		112		233		232
Homeowners		1,693		1,268		1,477		1,686		1,639		1,258		2,961		2,897
Other personal lines		544		464		467		508		494		435		1,008		929
		6,541		6,016		6,102		6,485		6,351		5,951		12,557		12,302
Encompass brand
Standard auto		167		147		153		163		160		142		314		302
Involuntary auto		2		2		1		2		3		2		4		5
Homeowners		120		97		101		108		104		85		217		189
Other personal lines		26		21		23		24		22		20		47		42
		315		267		278		297		289		249		582		538
Esurance brand
Standard auto		294		342		256		282		224		262		636		486
Other personal lines		1		-		-		-		-		-		1		-
		295		342		256		282		224		262		637		486
Allstate Protection		7,151		6,625		6,636		7,064		6,864		6,462		13,776		13,326
Discontinued Lines and Coverages		-		-		1		(1)		-		1		-		1
Property-Liability	$	7,151	$	6,625	$	6,637	$	7,063	$	6,864	$	6,463	$	13,776	$	13,327
Allstate Protection
Standard auto	$	4,473	$	4,472	$	4,281	$	4,433	$	4,287	$	4,341	$	8,945	$	8,628
Non-standard auto		158		172		159		176		174		189		330		363
Auto		4,631		4,644		4,440		4,609		4,461		4,530		9,275		8,991
Involuntary auto		15		19		16		19		24		22		34		46
Commercial lines		121		112		112		110		120		112		233		232
Homeowners		1,813		1,365		1,578		1,794		1,743		1,343		3,178		3,086
Other personal lines		571		485		490		532		516		455		1,056		971
	$	7,151	$	6,625	$	6,636	$	7,064	$	6,864	$	6,462	$	13,776	$	13,326
(1) Canada premiums included in Allstate brand	$	319	$	235	$	253	$	279	$	291	$	218	$	554	$	509

13

THE ALLSTATE CORPORATION

ALLSTATE BRAND PREMIUMS WRITTEN (1)

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Allstate Auto Home and Agencies
Standard auto	$	3,930	$	3,931	$	3,833	$	3,932	$	3,828	$	3,887	$	7,861	$	7,715
Non-standard auto		151		168		155		170		167		185		319		352
Auto		4,081		4,099		3,988		4,102		3,995		4,072		8,180		8,067
Involuntary auto		13		17		15		17		21		20		30		41
Homeowners		1,693		1,268		1,477		1,686		1,639		1,258		2,961		2,897
Other personal lines		13		9		9		12		12		8		22		20
		5,800		5,393		5,489		5,817		5,667		5,358		11,193		11,025
Emerging Businesses (2)
Specialty auto (3)	$	89	$	56	$	43	$	62	$	82	$	54	$	145	$	136
Landlord		135		124		137		140		132		123		259		255
Renters		59		53		52		62		54		50		112		104
Condominium		55		45		47		50		49		41		100		90
Other property		131		100		102		126		136		100		231		236
Specialty property		380		322		338		378		371		314		702		685
Consumer household (4)		469		378		381		440		453		368		847		821
Allstate Roadside Services		88		82		75		74		71		76		170		147
Allstate Dealer Services		63		51		45		44		40		37		114		77
Other personal lines (5)		531		455		458		496		482		427		986		909
Commercial lines		121		112		112		110		120		112		233		232
		741		623		613		668		684		593		1,364		1,277
Allstate brand (1)
Standard auto	$	4,012	$	3,983	$	3,872	$	3,988	$	3,903	$	3,937	$	7,995	$	7,840
Non-standard auto		158		172		159		176		174		189		330		363
Auto		4,170		4,155		4,031		4,164		4,077		4,126		8,325		8,203
Involuntary auto		13		17		15		17		21		20		30		41
Commercial lines		121		112		112		110		120		112		233		232
Homeowners		1,693		1,268		1,477		1,686		1,639		1,258		2,961		2,897
Other personal lines		544		464		467		508		494		435		1,008		929
	$	6,541	$	6,016	$	6,102	$	6,485	$	6,351	$	5,951	$	12,557	$	12,302

(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.

14

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

IMPACT OF NET RATE CHANGES APPROVED ON PREMIUMS WRITTEN

	Three months ended				Three months ended			Three months ended
	June 30, 2013 (1)				March 31, 2013			December 31, 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)	14		0.1	0.5	12	0.3	1.8	15	0.8	2.9
Non-standard auto	1		-	6.0	3	0.1	3.2	4	0.4	5.9
Auto	15		0.1	0.5	15	0.3	1.8	17	0.8	3.0
Homeowners (3)	8		0.5	6.2	16	1.3	4.8	20	2.3	6.2
Encompass brand
Standard auto	14		1.6	4.8	5	0.8	5.6	21	1.7	4.3
Homeowners	15		1.9	4.8	3	1.4	7.0	20	3.0	5.8
Esurance brand
Standard auto	15		1.7	4.7	11	0.9	4.2	21	2.0	4.4
	Three months ended				Three months ended			Three months ended
	September 30, 2012				June 30, 2012			March 31, 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)	13		0.3	1.8	19	1.5	4.4	10	0.5	5.4
Non-standard auto	4		0.2	5.8	1	0.3	7.5	4	0.2	1.4
Auto	15		0.3	1.8	19	1.4	4.4	13	0.5	5.1
Homeowners (3)	10		0.8	7.3	7	1.2	10.2	13	2.0	7.9
Encompass brand
Standard auto	3		0.7	4.5	14	1.6	4.2	2	0.1	3.2
Homeowners	5	(6)	0.3	2.5	14	1.8	5.4	5	0.9	5.3
Esurance brand
Standard auto	7		1.2	4.2	23	(0.1)	(0.1)	6	1.3	8.6

(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 June 30, 2013 are estimated to total $82 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 0.2%, 0.5%, 0.6%, 1.1%, 0.9% and 0.4% for the three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively.
(3)	Impacts of Allstate brand homeowners effective rate changes as a percentage of total countrywide prior year-end premiums written were 1.2%, 1.7%, 1.0%, 0.7%, 2.0% and 3.6% for the three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, 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.

15

THE ALLSTATE CORPORATION

ALLSTATE BRAND PROFITABILITY MEASURES

($ in millions, except ratios)

	Three months ended														Six months ended
			June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
			2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written		$	6,541	$	6,016	$	6,102	$	6,485	$	6,351	$	5,951	$	12,557	$	12,302
Net premiums earned
Standard auto		$	3,965	$	3,927	$	3,921	$	3,910	$	3,909	$	3,897	$	7,892	$	7,806
Non-standard auto			168		167		171		177		184		183		335		367
Auto			4,133		4,094		4,092		4,087		4,093		4,080		8,227		8,173
Homeowners			1,525		1,516		1,514		1,499		1,487		1,480		3,041		2,967
Other personal lines			608		599		600		591		583		583		1,207		1,166
Total			6,266		6,209		6,206		6,177		6,163		6,143		12,475		12,306
Incurred losses
Standard auto		$	2,736	$	2,670	$	2,988	$	2,617	$	2,734	$	2,713	$	5,406	$	5,447
Non-standard auto			107		104		104		103		112		123		211		235
Auto			2,843		2,774		3,092		2,720		2,846		2,836		5,617		5,682
Homeowners			1,084		914		1,045		735		1,218		836		1,998		2,054
Other personal lines			357		355		429		416		369		314		712		683
Total			4,284		4,043		4,566		3,871		4,433		3,986		8,327		8,419
Expenses
Standard auto		$	1,028	$	1,029	$	1,001	$	977	$	1,000	$	998	$	2,057	$	1,998
Non-standard auto			41		39		45		43		42		44		80		86
Auto			1,069		1,068		1,046		1,020		1,042		1,042		2,137		2,084
Homeowners			368		376		377		358		342		351		744		693
Other personal lines			204		207		216		182		164		178		411		342
Total			1,641		1,651		1,639		1,560		1,548		1,571		3,292		3,119
Underwriting income (loss)
Standard auto		$	201	$	228	$	(68)	$	316	$	175	$	186	$	429	$	361
Non-standard auto			20		24		22		31		30		16		44		46
Auto			221		252		(46)		347		205		202		473		407
Homeowners			73		226		92		406		(73)		293		299		220
Other personal lines			47		37		(45)		(7)		50		91		84		141
Total			341		515		1		746		182		586		856		768
Loss ratio			68.4		65.1		73.6		62.7		71.9		64.9		66.7		68.4
Expense ratio			26.2		26.6		26.4		25.2		25.1		25.6		26.4		25.4
Combined ratio			94.6		91.7		100.0		87.9		97.0		90.5		93.1		93.8
Effect of catastrophe losses on combined ratio			9.8		5.5		15.5		3.1		12.9		4.1		7.7		8.5
Effect of prior year reserve reestimates on combined ratio			(0.9)		(0.6)		(2.2)		(2.9)		(2.5)		(3.3)		(0.7)		(2.9)
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio			0.1		0.1		0.1		0.1		0.1		0.1		0.1		0.1
Effect of advertising expenses on combined ratio			3.2		2.7		2.5		2.4		2.9		3.1		3.0		3.0
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses, and the amortization of purchased intangible assets (“underlying”)			85.4		86.2		85.3		86.7		85.1		87.0		85.8		86.0
Effect of catastrophe losses			9.8		5.5		15.5		3.1		12.9		4.1		7.7		8.5
Effect of prior year non-catastrophe reserve reestimates			(0.7)		(0.1)		(0.9)		(2.0)		(1.1)		(0.7)		(0.5)		(0.8)
Effect of business combination expenses and the amortization of purchased intangible assets			0.1		0.1		0.1		0.1		0.1		0.1		0.1		0.1
Combined ratio			94.6		91.7		100.0		87.9		97.0		90.5		93.1		93.8

16

THE ALLSTATE CORPORATION

ENCOMPASS BRAND PROFITABILITY MEASURES

($ in millions, except ratios)

	Three months ended												Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written	$	315	$	267	$	278	$	297	$	289	$	249	$	582	$	538
Net premiums earned
Standard auto	$	158	$	155	$	153	$	152	$	153	$	151	$	313	$	304
Non-standard auto		-		-		-		-		-		-		-		-
Auto		158		155		153		152		153		151		313		304
Homeowners		105		100		98		96		93		92		205		185
Other personal lines		24		25		24		23		23		23		49		46
Total		287		280		275		271		269		266		567		535
Incurred losses
Standard auto	$	117	$	117	$	118	$	121	$	125	$	118	$	234	$	243
Non-standard auto		-		-		(2)		(2)		-		-		-		-
Auto		117		117		116		119		125		118		234		243
Homeowners		69		62		121		56		62		51		131		113
Other personal lines		21		20		20		13		10		20		41		30
Total		207		199		257		188		197		189		406		386
Expenses
Standard auto	$	48	$	47	$	47	$	45	$	42	$	43	$	95	$	85
Non-standard auto		-		-		1		-		-		-		-		-
Auto		48		47		48		45		42		43		95		85
Homeowners		33		32		31		30		28		28		65		56
Other personal lines		6		8		6		7		7		5		14		12
Total		87		87		85		82		77		76		174		153
Underwriting income (loss)
Standard auto	$	(7)	$	(9)	$	(12)	$	(14)	$	(14)	$	(10)	$	(16)	$	(24)
Non-standard auto		-		-		1		2		-		-		-		-
Auto		(7)		(9)		(11)		(12)		(14)		(10)		(16)		(24)
Homeowners		3		6		(54)		10		3		13		9		16
Other personal lines		(3)		(3)		(2)		3		6		(2)		(6)		4
Total		(7)		(6)		(67)		1		(5)		1		(13)		(4)
Loss ratio		72.1		71.1		93.5		69.4		73.3		71.0		71.6		72.1
Expense ratio		30.3		31.0		30.9		30.2		28.6		28.6		30.7		28.6
Combined ratio		102.4		102.1		124.4		99.6		101.9		99.6		102.3		100.7
Effect of catastrophe losses on combined ratio		10.1		4.6		34.9		5.5		6.7		2.6		7.4		4.7
Effect of prior year reserve reestimates on combined ratio		(1.4)		(0.7)		(8.4)		(3.7)		(3.7)		(0.8)		(1.1)		(2.2)
Effect of advertising expenses on combined ratio		0.7		0.7		0.7		-		0.4		0.8		0.7		0.6
Combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		92.7		97.9		97.1		93.4		97.0		96.6		95.2		96.8
Effect of catastrophe losses		10.1		4.6		34.9		5.5		6.7		2.6		7.4		4.7
Effect of prior year non-catastrophe reserve reestimates		(0.4)		(0.4)		(7.6)		0.7		(1.8)		0.4		(0.3)		(0.8)
Combined ratio		102.4		102.1		124.4		99.6		101.9		99.6		102.3		100.7

17

THE ALLSTATE CORPORATION

ESURANCE BRAND PROFITABILITY MEASURES AND STATISTICS

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
($ in millions)		2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written	$	295	$	342	$	256	$	282	$	224	$	262	$	637	$	486
Net premiums earned
Standard auto	$	308	$	281	$	264	$	248	$	234	$	221	$	589	$	455
Other personal lines		1		-		-		-		-		-		1		-
		309		281		264		248		234		221		590		455
Incurred losses
Standard auto	$	246	$	215	$	215	$	192	$	178	$	161	$	461	$	339
Other personal lines		1		-		-		-		-		-		1		-
		247		215		215		192		178		161		462		339
Expenses
Standard auto	$	122	$	113	$	95	$	102	$	95	$	121	$	235	$	216
Other personal lines		1		-		-		-		-		-		1		-
		123		113		95		102		95		121		236		216
Underwriting loss
Standard auto	$	(60)	$	(47)	$	(46)	$	(46)	$	(39)	$	(61)	$	(107)	$	(100)
Other personal lines		(1)		-		-		-		-		-		(1)		-
		(61)		(47)		(46)		(46)		(39)		(61)		(108)		(100)
Loss ratio		79.9		76.5		81.4		77.4		76.1		72.8		78.3		74.5
Expense ratio		39.8		40.2		36.0		41.1		40.6		54.8		40.0		47.5
Combined ratio		119.7		116.7		117.4		118.5		116.7		127.6		118.3		122.0
Effect of catastrophe losses on combined ratio		1.6		1.1		2.3		0.8		2.6		0.4		1.4		1.5
Effect of prior year reserve reestimates on combined ratio		-		-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio		5.2		5.3		7.2		8.1		8.1		18.1		5.3		13.0
Effect of advertising expenses on combined ratio		16.2		16.0		9.5		16.5		16.2		20.4		16.1		18.2
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, business combination expenses, and the amortization of purchased intangible assets (“underlying”)		112.9		110.3		107.9		109.6		106.0		109.1		111.6		107.5
Effect of catastrophe losses		1.6		1.1		2.3		0.8		2.6		0.4		1.4		1.5
Effect of prior year non-catastrophe reserve reestimates		-		-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets		5.2		5.3		7.2		8.1		8.1		18.1		5.3		13.0
Combined ratio		119.7		116.7		117.4		118.5		116.7		127.6		118.3		122.0
Policies in Force (in thousands)
Standard auto		1,207		1,151		1,029		962		892		849		1,207		892
Other personal lines		11		7		2		-		-		-		11		-
		1,218		1,158		1,031		962		892		849		1,218		892
New Issued Applications (in thousands)
Standard auto		175		222		164		172		130		139		397		269
Other personal lines		6		5		2		-		-		-		11		-
		181		227		166		172		130		139		408		269
Average Premium - Gross Written ($)
Standard auto		481		494		484		485		490		508		487		499
Renewal Ratio (%)
Standard auto		81.7		81.2		80.1		79.7		81.9		80.5		81.5		81.1
Impact of Esurance brand on Allstate Protection combined ratio		0.9		0.7		0.7		0.7		0.6		0.9		0.8		0.8
Impact of Esurance brand on Allstate Protection expense ratio		1.8		1.7		1.4		1.5		1.4		1.8		1.7		1.6

18

THE ALLSTATE CORPORATION

STANDARD AUTO PROFITABILITY MEASURES

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
($ in millions)		2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written
Allstate brand	$	4,012	$	3,983	$	3,872	$	3,988	$	3,903	$	3,937	$	7,995	$	7,840
Encompass brand		167		147		153		163		160		142		314		302
Esurance brand		294		342		256		282		224		262		636		486
		4,473		4,472		4,281		4,433		4,287		4,341		8,945		8,628
Net premiums earned
Allstate brand	$	3,965	$	3,927	$	3,921	$	3,910	$	3,909	$	3,897	$	7,892	$	7,806
Encompass brand		158		155		153		152		153		151		313		304
Esurance brand		308		281		264		248		234		221		589		455
		4,431		4,363		4,338		4,310		4,296		4,269		8,794		8,565
Incurred losses
Allstate brand	$	2,736	$	2,670	$	2,988	$	2,617	$	2,734	$	2,713	$	5,406	$	5,447
Encompass brand		117		117		118		121		125		118		234		243
Esurance brand		246		215		215		192		178		161		461		339
		3,099		3,002		3,321		2,930		3,037		2,992		6,101		6,029
Expenses
Allstate brand	$	1,028	$	1,029	$	1,001	$	977	$	1,000	$	998	$	2,057	$	1,998
Encompass brand		48		47		47		45		42		43		95		85
Esurance brand		122		113		95		102		95		121		235		216
		1,198		1,189		1,143		1,124		1,137		1,162		2,387		2,299
Underwriting income
Allstate brand	$	201	$	228	$	(68)	$	316	$	175	$	186	$	429	$	361
Encompass brand		(7)		(9)		(12)		(14)		(14)		(10)		(16)		(24)
Esurance brand		(60)		(47)		(46)		(46)		(39)		(61)		(107)		(100)
		134		172		(126)		256		122		115		306		237
Loss ratio
Allstate brand		69.0		68.0		76.2		66.9		69.9		69.6		68.5		69.8
Encompass brand		74.0		75.5		77.1		79.6		81.7		78.1		74.8		79.9
Esurance brand		79.9		76.5		81.4		77.4		76.1		72.8		78.3		74.5
Allstate Protection		69.9		68.8		76.6		68.0		70.7		70.1		69.4		70.4
Expense ratio
Allstate brand		25.9		26.2		25.5		25.0		25.6		25.6		26.1		25.6
Encompass brand		30.4		30.3		30.7		29.6		27.5		28.5		30.3		28.0
Esurance brand		39.6		40.2		36.0		41.1		40.6		54.8		39.9		47.5
Allstate Protection		27.1		27.3		26.3		26.1		26.5		27.2		27.1		26.8
Combined ratio
Allstate brand		94.9		94.2		101.7		91.9		95.5		95.2		94.6		95.4
Encompass brand		104.4		105.8		107.8		109.2		109.2		106.6		105.1		107.9
Esurance brand		119.5		116.7		117.4		118.5		116.7		127.6		118.2		122.0
Allstate Protection		97.0		96.1		102.9		94.1		97.2		97.3		96.5		97.2
Effect of catastrophe losses on combined ratio
Allstate brand		1.9		1.1		9.3		1.3		3.9		1.2		1.5		2.6
Encompass brand		0.6		(0.6)		9.8		1.3		2.6		0.7		-		1.6
Esurance brand		1.6		1.1		2.3		0.8		2.6		0.4		1.4		1.5
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(1.7)		(1.6)		(1.7)		(3.2)		(2.0)		(1.2)		(1.6)		(1.6)
Encompass brand		(3.2)		(3.9)		(14.4)		0.7		-		0.7		(3.5)		0.3
Esurance brand		-		-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio
Esurance brand		5.2		5.3		7.2		8.1		8.1		18.1		5.3		13.0
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		94.2		93.5		94.0		93.7		93.4		94.9		93.9		94.2
Effect of catastrophe losses on combined ratio		1.9		1.1		9.3		1.3		3.9		1.2		1.5		2.6
Effect of prior year non-catastrophe reserve reestimates on combined ratio		(1.2)		(0.4)		(1.6)		(3.1)		(1.8)		(0.9)		(0.8)		(1.4)
Allstate brand combined ratio		94.9		94.2		101.7		91.9		95.5		95.2		94.6		95.4
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		(0.5)		(1.2)		(0.1)		(0.1)		(0.2)		(0.3)		(0.8)		(0.2)

19

THE ALLSTATE CORPORATION

ALLSTATE BRAND STANDARD AUTO LOSS RATIO OF TOP 5 STATES

	Three months ended							Six months ended
		June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,	June 30,	June 30,
		2013	2013	2012	2012	2012	2012	2013	2012
Allstate brand standard auto loss ratio (1)
California		76.1	72.1	71.2	68.8	71.6	78.4	74.1	75.0
Florida		69.7	69.7	72.5	65.6	66.6	71.3	69.7	69.0
New York (2)		64.7	70.6	135.2	67.8	67.7	65.2	67.7	66.4
Pennsylvania		70.7	70.1	71.0	71.9	70.3	72.7	70.4	71.5
Texas		77.4	65.8	66.8	62.5	81.5	74.5	71.7	78.0
All other states & Canada		67.2	67.9	68.8	67.0	68.7	67.6	66.8	68.1
Total Allstate brand standard auto		69.0	68.0	76.2	66.9	69.9	69.6	68.5	69.8

(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.

20

THE ALLSTATE CORPORATION

NON-STANDARD AUTO PROFITABILITY MEASURES

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
($ in millions)		2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written
Allstate brand	$	158	$	172	$	159	$	176	$	174	$	189	$	330	$	363
Encompass brand		-		-		-		-		-		-		-		-
		158		172		159		176		174		189		330		363
Net premiums earned
Allstate brand	$	168	$	167	$	171	$	177	$	184	$	183	$	335	$	367
Encompass brand		-		-		-		-		-		-		-		-
		168		167		171		177		184		183		335		367
Incurred losses
Allstate brand	$	107	$	104	$	104	$	103	$	112	$	123	$	211	$	235
Encompass brand		-		-		(2)		(2)		-		-		-		-
		107		104		102		101		112		123		211		235
Expenses
Allstate brand	$	41	$	39	$	45	$	43	$	42	$	44	$	80	$	86
Encompass brand		-		-		1		-		-		-		-		-
		41		39		46		43		42		44		80		86
Underwriting income
Allstate brand	$	20	$	24	$	22	$	31	$	30	$	16	$	44	$	46
Encompass brand		-		-		1		2		-		-		-		-
		20		24		23		33		30		16		44		46
Loss ratio
Allstate brand		63.7		62.3		60.8		58.2		60.9		67.2		63.0		64.0
Encompass brand		-		-		-		-		-		-		-		-
Allstate Protection		63.7		62.3		59.6		57.1		60.9		67.2		63.0		64.0
Expense ratio
Allstate brand		24.4		23.3		26.3		24.3		22.8		24.1		23.9		23.5
Encompass brand		-		-		-		-		-		-		-		-
Allstate Protection		24.4		23.3		26.9		24.3		22.8		24.1		23.9		23.5
Combined ratio
Allstate brand		88.1		85.6		87.1		82.5		83.7		91.3		86.9		87.5
Encompass brand		-		-		-		-		-		-		-		-
Allstate Protection		88.1		85.6		86.5		81.4		83.7		91.3		86.9		87.5
Effect of catastrophe losses on combined ratio
Allstate brand		1.8		0.6		0.6		1.1		1.6		-		1.2		0.8
Encompass brand		-		-		-		-		-		-		-		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(4.2)		(0.6)		(7.0)		(4.5)		(1.6)		-		(2.4)		(0.8)
Encompass brand		-		-		-		-		-		-		-		-

21

THE ALLSTATE CORPORATION

AUTO PROFITABILITY MEASURES

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
($ in millions)		2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written
Allstate brand	$	4,170	$	4,155	$	4,031	$	4,164	$	4,077	$	4,126	$	8,325	$	8,203
Encompass brand		167		147		153		163		160		142		314		302
Esurance brand		294		342		256		282		224		262		636		486
		4,631		4,644		4,440		4,609		4,461		4,530		9,275		8,991
Net premiums earned
Allstate brand	$	4,133	$	4,094	$	4,092	$	4,087	$	4,093	$	4,080	$	8,227	$	8,173
Encompass brand		158		155		153		152		153		151		313		304
Esurance brand		308		281		264		248		234		221		589		455
		4,599		4,530		4,509		4,487		4,480		4,452		9,129		8,932
Incurred losses
Allstate brand	$	2,843	$	2,774	$	3,092	$	2,720	$	2,846	$	2,836	$	5,617	$	5,682
Encompass brand		117		117		116		119		125		118		234		243
Esurance brand		246		215		215		192		178		161		461		339
		3,206		3,106		3,423		3,031		3,149		3,115		6,312		6,264
Expenses
Allstate brand	$	1,069	$	1,068	$	1,046	$	1,020	$	1,042	$	1,042	$	2,137	$	2,084
Encompass brand		48		47		48		45		42		43		95		85
Esurance brand		122		113		95		102		95		121		235		216
		1,239		1,228		1,189		1,167		1,179		1,206		2,467		2,385
Underwriting income
Allstate brand	$	221	$	252	$	(46)	$	347	$	205	$	202	$	473	$	407
Encompass brand		(7)		(9)		(11)		(12)		(14)		(10)		(16)		(24)
Esurance brand		(60)		(47)		(46)		(46)		(39)		(61)		(107)		(100)
		154		196		(103)		289		152		131		350		283
Loss ratio
Allstate brand		68.8		67.7		75.6		66.5		69.5		69.5		68.3		69.5
Encompass brand		74.0		75.5		75.8		78.3		81.7		78.1		74.8		79.9
Esurance brand		79.9		76.5		81.4		77.4		76.1		72.8		78.3		74.5
Allstate Protection		69.7		68.6		75.9		67.6		70.3		70.0		69.2		70.1
Expense ratio
Allstate brand		25.9		26.1		25.5		25.0		25.5		25.5		26.0		25.5
Encompass brand		30.4		30.3		31.4		29.6		27.5		28.5		30.3		28.0
Esurance brand		39.6		40.2		36.0		41.1		40.6		54.8		39.9		47.5
Allstate Protection		27.0		27.1		26.4		26.0		26.3		27.1		27.0		26.7
Combined ratio
Allstate brand		94.7		93.8		101.1		91.5		95.0		95.0		94.3		95.0
Encompass brand		104.4		105.8		107.2		107.9		109.2		106.6		105.1		107.9
Esurance brand		119.5		116.7		117.4		118.5		116.7		127.6		118.2		122.0
Allstate Protection		96.7		95.7		102.3		93.6		96.6		97.1		96.2		96.8
Effect of catastrophe losses on combined ratio
Allstate brand		1.9		1.1		8.9		1.2		3.8		1.2		1.5		2.5
Encompass brand		0.6		(0.6)		9.8		1.3		2.6		0.7		-		1.6
Esurance brand		1.6		1.1		2.3		0.8		2.6		0.4		1.4		1.5
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(1.8)		(1.6)		(1.9)		(3.3)		(2.0)		(1.2)		(1.7)		(1.6)
Encompass brand		(3.2)		(3.9)		(15.0)		(0.7)		(0.7)		0.7		(3.5)		-
Esurance brand		-		-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio
Esurance brand		5.2		5.3		7.2		8.1		8.1		18.1		5.3		13.0

22

THE ALLSTATE CORPORATION

HOMEOWNERS PROFITABILITY MEASURES

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
($ in millions)		2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written
Allstate brand	$	1,693	$	1,268	$	1,477	$	1,686	$	1,639	$	1,258	$	2,961	$	2,897
Encompass brand		120		97		101		108		104		85		217		189
		1,813		1,365		1,578		1,794		1,743		1,343		3,178		3,086
Net premiums earned
Allstate brand	$	1,525	$	1,516	$	1,514	$	1,499	$	1,487	$	1,480	$	3,041	$	2,967
Encompass brand		105		100		98		96		93		92		205		185
		1,630		1,616		1,612		1,595		1,580		1,572		3,246		3,152
Incurred losses
Allstate brand	$	1,084	$	914	$	1,045	$	735	$	1,218	$	836	$	1,998	$	2,054
Encompass brand		69		62		121		56		62		51		131		113
		1,153		976		1,166		791		1,280		887		2,129		2,167
Expenses
Allstate brand	$	368	$	376	$	377	$	358	$	342	$	351	$	744	$	693
Encompass brand		33		32		31		30		28		28		65		56
		401		408		408		388		370		379		809		749
Underwriting income
Allstate brand	$	73	$	226	$	92	$	406	$	(73)	$	293	$	299	$	220
Encompass brand		3		6		(54)		10		3		13		9		16
		76		232		38		416		(70)		306		308		236
Loss ratio
Allstate brand		71.1		60.3		69.0		49.0		81.9		56.5		65.7		69.2
Encompass brand		65.7		62.0		123.5		58.3		66.7		55.4		63.9		61.1
Allstate Protection		70.7		60.4		72.3		49.6		81.0		56.4		65.6		68.7
Expense ratio
Allstate brand		24.1		24.8		24.9		23.9		23.0		23.7		24.5		23.4
Encompass brand		31.4		32.0		31.6		31.3		30.1		30.5		31.7		30.3
Allstate Protection		24.6		25.2		25.3		24.3		23.4		24.1		24.9		23.8
Combined ratio
Allstate brand		95.2		85.1		93.9		72.9		104.9		80.2		90.2		92.6
Encompass brand		97.1		94.0		155.1		89.6		96.8		85.9		95.6		91.4
Allstate Protection		95.3		85.6		97.6		73.9		104.4		80.5		90.5		92.5
Effect of catastrophe losses on combined ratio
Allstate brand		32.5		18.7		32.0		7.8		40.2		12.6		25.6		26.4
Encompass brand		23.8		12.0		77.6		13.5		15.1		6.5		18.0		10.8
Effect of prior year reserve reestimates on combined ratio
Allstate brand		1.0		2.6		(5.0)		(4.3)		(3.5)		(7.9)		1.8		(5.7)
Encompass brand		(1.0)		1.0		2.0		(8.3)		(4.3)		(2.2)		-		(3.2)
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		62.7		65.8		62.4		66.2		64.6		67.0		64.2		65.8
Effect of catastrophe losses on combined ratio		32.5		18.7		32.0		7.8		40.2		12.6		25.6		26.4
Effect of prior year non-catastrophe reserve reestimates on combined ratio		-		0.6		(0.5)		(1.1)		0.1		0.6		0.4		0.4
Allstate brand combined ratio		95.2		85.1		93.9		72.9		104.9		80.2		90.2		92.6
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		1.0		2.0		(4.5)		(3.2)		(3.6)		(8.5)		1.4		(6.1)

23

THE ALLSTATE CORPORATION

OTHER PERSONAL LINES PROFITABILITY MEASURES (1)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
($ in millions)		2013		2013		2012		2012		2012		2012		2013		2012
Net premiums written
Allstate brand	$	678	$	593	$	594	$	635	$	635	$	567	$	1,271	$	1,202
Encompass brand		28		23		24		26		25		22		51		47
Esurance brand		1		-		-		-		-		-		1		-
		707		616		618		661		660		589		1,323		1,249
Net premiums earned
Allstate brand	$	608	$	599	$	600	$	591	$	583	$	583	$	1,207	$	1,166
Encompass brand		24		25		24		23		23		23		49		46
Esurance brand		1		-		-		-		-		-		1		-
		633		624		624		614		606		606		1,257		1,212
Incurred losses
Allstate brand	$	357	$	355	$	429	$	416	$	369	$	314	$	712	$	683
Encompass brand		21		20		20		13		10		20		41		30
Esurance brand		1		-		-		-		-		-		1		-
		379		375		449		429		379		334		754		713
Expenses
Allstate brand	$	204	$	207	$	216	$	182	$	164	$	178	$	411	$	342
Encompass brand		6		8		6		7		7		5		14		12
Esurance brand		1		-		-		-		-		-		1		-
		211		215		222		189		171		183		426		354
Underwriting income
Allstate brand	$	47	$	37	$	(45)	$	(7)	$	50	$	91	$	84	$	141
Encompass brand		(3)		(3)		(2)		3		6		(2)		(6)		4
Esurance brand		(1)		-		-		-		-		-		(1)		-
		43		34		(47)		(4)		56		89		77		145
Loss ratio
Allstate brand		58.7		59.3		71.5		70.4		63.3		53.9		59.0		58.6
Encompass brand		87.5		80.0		83.3		56.5		43.5		87.0		83.7		65.2
Esurance brand		100.0		-		-		-		-		-		100.0		-
Allstate Protection		59.9		60.1		71.9		69.9		62.6		55.1		60.0		58.8
Expense ratio
Allstate brand		33.6		34.5		36.0		30.8		28.1		30.5		34.0		29.3
Encompass brand		25.0		32.0		25.0		30.5		30.4		21.7		28.5		26.1
Esurance brand		100.0		-		-		-		-		-		100.0		-
Allstate Protection		33.3		34.5		35.6		30.8		28.2		30.2		33.9		29.2
Combined ratio
Allstate brand		92.3		93.8		107.5		101.2		91.4		84.4		93.0		87.9
Encompass brand		112.5		112.0		108.3		87.0		73.9		108.7		112.2		91.3
Esurance brand		200.0		-		-		-		-		-		200.0		-
Allstate Protection		93.2		94.6		107.5		100.7		90.8		85.3		93.9		88.0
Effect of catastrophe losses on combined ratio
Allstate brand		6.3		2.7		18.0		3.6		7.2		2.9		4.5		5.1
Encompass brand		12.5		8.0		20.8		-		-		-		10.2		-
Esurance brand		-		-		-		-		-		-		-		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		0.2		(2.0)		3.2		2.7		(2.9)		(6.7)		(0.9)		(4.8)
Encompass brand		8.3		12.0		(8.3)		(4.3)		(21.7)		(4.3)		10.2		(13.0)
Esurance brand		-		-		-		-		-		-		-		-
Effect of business combination expenses and the amortization of purchased intangible assets on combined ratio
Allstate brand		0.7		1.0		1.0		1.0		1.2		1.2		0.8		1.2

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

24

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY POLICIES IN FORCE AND OTHER STATISTICS

		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2013		2012		2012		2012		2012
Policies in Force (in thousands) (1)
Allstate brand
Allstate Auto Home and Agencies
Standard auto		16,938		16,850		16,929		16,941		17,046		17,080
Non-standard auto		498		509		508		528		551		570
Auto		17,436		17,359		17,437		17,469		17,597		17,650
Homeowners		5,852		5,895		5,974		6,042		6,147		6,259
Canada		1,031		1,005		991		975		956		938
Involuntary auto		24		25		27		28		29		28
Excess and surplus		18		15		13		12		10		9
		24,361		24,299		24,442		24,526		24,739		24,884
Emerging Businesses (2)
Renters		1,304		1,304		1,303		1,300		1,283		1,275
Condominium		614		614		616		615		616		615
Landlord		744		748		752		754		758		764
Other property		1,204		1,209		1,223		1,230		1,238		1,245
Specialty property		3,866		3,875		3,894		3,899		3,895		3,899
Specialty auto		1,058		1,021		1,018		1,023		1,010		976
Consumer household		4,924		4,896		4,912		4,922		4,905		4,875
Commercial lines		291		286		283		290		283		281
Allstate Roadside Services		997		1,001		1,009		1,025		1,035		1,045
		6,212		6,183		6,204		6,237		6,223		6,201
Total Allstate brand		30,573		30,482		30,646		30,763		30,962		31,085
Encompass brand
Standard auto		728		714		708		697		687		676
Homeowners		341		333		327		320		314		309
Specialty auto		24		23		23		22		22		21
Specialty property		120		117		116		114		112		111
Involuntary auto		4		4		4		5		5		5
Total Encompass brand		1,217		1,191		1,178		1,158		1,140		1,122
Esurance brand
Standard auto		1,207		1,151		1,029		962		892		849
Specialty property (3)		11		7		2		-		-		-
Total Esurance brand		1,218		1,158		1,031		962		892		849
Total Policies in Force		33,008		32,831		32,855		32,883		32,994		33,056
Other Customer Relationships
Good Hands Roadside Members (in thousands) (4)		1,272		1,099		870		758		656		569
Non-Proprietary Premiums ($ in millions)
Ivantage (5)	$	1,363	$	1,310	$	1,300	$	1,278	$	1,243	$	1,203
Answer Financial (6)		111		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 June 30, 2013 were $174 thousand.
(5)	Represents non-proprietary premiums under management as of the end of the period related to personal and commercial line products offered by Ivantage when an Allstate product is not available. Premiums under management are recognized on a one month delay. Premiums are estimates and are reported by entities which have brokering arrangements with Allstate. Fees for the three months ended June 30, 2013 were $15.8 million.
(6)	Represents non-proprietary premiums written for the period. Fees for the three months ended June 30, 2013 were $16.1 million.

25

THE ALLSTATE CORPORATION

ALLSTATE BRAND DOMESTIC OPERATING MEASURES AND STATISTICS (1)

	Three months ended							Six months ended
		June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,	June 30,	June 30,
		2013	2013	2012	2012	2012	2012	2013	2012
New Issued Applications (in thousands) (2)
Standard auto		529	497	445	460	458	463	1,026	921
Non-standard auto		58	73	53	56	58	79	131	137
Auto		587	570	498	516	516	542	1,157	1,058
Homeowners		157	113	109	116	116	101	270	217
Average Premium - Gross Written ($) (3)
Standard auto		458	457	455	450	447	447	457	447
Non-standard auto		606	601	605	596	601	598	603	599
Auto		462	462	460	455	452	452	462	452
Homeowners		1,123	1,115	1,104	1,096	1,080	1,065	1,119	1,073
Average Premium - Net Earned ($) (4)
Standard auto		442	439	437	433	433	431	441	432
Non-standard auto		549	550	544	538	545	542	549	543
Auto		445	442	440	436	437	434	444	436
Homeowners		999	983	973	949	925	904	991	914
Renewal Ratio (%) (5)
Standard auto		89.7	89.3	89.0	89.0	89.0	88.7	89.5	88.8
Non-standard auto		71.0	70.7	70.6	70.1	71.2	69.1	70.8	70.1
Auto		89.1	88.7	88.4	88.3	88.3	88.0	88.9	88.1
Homeowners		87.3	87.0	87.5	87.2	87.0	87.4	87.2	87.2
Bodily Injury Claim Frequency
(% change year-over-year)
Standard auto		(0.5)	(1.5)	(2.1)	(1.2)	1.9	(2.1)	(1.0)	(0.1)
Non-standard auto		1.4	(2.7)	(4.0)	1.3	3.2	(1.0)	(0.6)	1.0
Auto		(0.7)	(1.9)	(2.4)	(1.4)	1.6	(2.5)	(1.3)	(0.5)
Property Damage Claim Frequency
(% change year-over-year)
Standard auto		0.1	(0.2)	(3.7)	(1.2)	1.4	(4.1)	-	(1.4)
Non-standard auto		2.6	(0.7)	(3.7)	(1.9)	0.9	(1.2)	0.9	(0.2)
Auto		0.1	(0.4)	(3.9)	(1.4)	1.1	(4.3)	(0.1)	(1.6)
Auto Paid Severity
(% change year-over-year)
Bodily injury		4.3	7.4	5.2	6.8	3.4	1.2	5.8	2.3
Property damage		3.7	(1.0)	0.4	3.9	3.0	4.6	1.3	3.8
Homeowners Excluding Catastrophe Losses
(% change year-over-year)
Claim frequency		0.2	1.1	(10.0)	(11.4)	(6.7)	(4.8)	0.7	(5.8)
Claim severity		0.5	(0.5)	6.0	5.8	2.0	(0.4)	-	0.8

(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.

26

THE ALLSTATE CORPORATION

HOMEOWNERS SUPPLEMENTAL INFORMATION

($ in millions)

		Six months ended June 30, 2013
										Premium rate changes (3)
											Annual impact of
								Effect of			rate changes
		Earned		Incurred			Catastrophe	catastrophes	Number of	Number of	on state specific
Primary Exposure Groupings (1)		premiums		losses	Loss ratios		losses	on loss ratio	catastrophes	states	premiums written
Florida	$	60	$	35	58.3%	$	(2)	-3.3%
Other hurricane exposure states		1,675		1,103	65.9%		459	27.4%
Total hurricane exposure states (2)		1,735		1,138	65.6%		457	26.3%		13	5.1%
Other catastrophe exposure states		1,511		991	65.6%		360	23.8%		16	5.6%
Total	$	3,246	$	2,129	65.6%	$	817	25.2%	35	29	5.3%

(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.

27

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION CATASTROPHE LOSSES BY MARKET SEGMENT

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Allstate brand
Standard auto	$	76	$	42	$	365	$	49	$	153	$	48	$	118	$	201
Non-standard auto		3		1		1		2		3		-		4		3
Auto		79		43		366		51		156		48		122		204
Homeowners		496		284		485		117		597		186		780		783
Other personal lines		38		16		108		21		42		17		54		59
Total Allstate Brand		613		343		959		189		795		251		956		1,046
Encompass brand
Standard auto		1		(1)		15		2		4		1		-		5
Non-standard auto		-		-		-		-		-		-		-		-
Auto		1		(1)		15		2		4		1		-		5
Homeowners		25		12		76		13		14		6		37		20
Other personal lines		3		2		5		-		-		-		5		-
Total Encompass Brand		29		13		96		15		18		7		42		25
Esurance brand
Standard auto		5		3		6		2		6		1		8		7
Other personal lines		-		-		-		-		-		-		-		-
Total Esurance Brand		5		3		6		2		6		1		8		7
Allstate Protection	$	647	$	359	$	1,061	$	206	$	819	$	259	$	1,006	$	1,078
Allstate Protection
Standard auto	$	82	$	44	$	386	$	53	$	163	$	50	$	126	$	213
Non-standard auto		3		1		1		2		3		-		4		3
Auto		85		45		387		55		166		50		130		216
Homeowners		521		296		561		130		611		192		817		803
Other personal lines		41		18		113		21		42		17		59		59
	$	647	$	359	$	1,061	$	206	$	819	$	259	$	1,006	$	1,078

28

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

EFFECT OF CATASTROPHE LOSSES ON THE COMBINED RATIO

($ in millions, except ratios)

										Excludes the effect of
										catastrophe losses relating to
										earthquakes and hurricanes
	Effect of all catastrophe losses on the Property-Liability					Premiums		Total		Total		Effect on the
	combined ratio					earned		catastrophe		catastrophe		Property-Liability
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year	year-to-date		losses by year		losses by year		combined ratio
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	9.4	-	-	7.4	13,632		1,006		1,071		7.9
Average	4.8	10.6	18.1	6.8	9.9							6.0

29

THE ALLSTATE CORPORATION

ALLSTATE PROTECTION CATASTROPHE BY SIZE OF EVENT

($ in millions, except ratios)

Three months ended June 30, 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	2	7.7			246	38.1		3.6		123
$50 million to $100 million	2	7.7			178	27.5		2.6		89
Less than $50 million	22	84.6			281	43.4		4.1		13
Total	26	100.0	%		705	109.0		10.3		27
Prior year reserve reestimates					(18)	(2.8)		(0.3)
Prior quarter reserve reestimates					(40)	(6.2)		(0.6)
Total catastrophe losses				$	647	100.0	%	9.4

Six months ended June 30, 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	3	8.6			436	43.3		3.2		145
$50 million to $100 million	3	8.6			236	23.5		1.8		79
Less than $50 million	29	82.8			384	38.2		2.8		13
Total	35	100.0	%		1,056	105.0		7.8		30
Prior year reserve reestimates					(50)	(5.0)		(0.4)
Total catastrophe losses				$	1,006	100.0	%	7.4

30

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

EFFECT OF PRIOR YEAR RESERVE REESTIMATES ON THE COMBINED RATIO

($ in millions, except ratios)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Prior Year Reserve Reestimates (1)
Auto	$	(79)	$	(70)	$	(100)	$	(134)	$	(83)	$	(48)	$	(149)	$	(131)
Homeowners		15		41		(74)		(72)		(56)		(119)		56		(175)
Other personal lines		3		(9)		17		15		(22)		(40)		(6)		(62)
Allstate Protection		(61)		(38)		(157)		(191)		(161)		(207)		(99)		(368)
Discontinued Lines and Coverages		3		3		3		42		3		3		6		6
Property-Liability	$	(58)	$	(35)	$	(154)	$	(149)	$	(158)	$	(204)	$	(93)	$	(362)
Allstate brand (2)	$	(57)	$	(36)	$	(134)	$	(181)	$	(151)	$	(205)	$	(93)	$	(356)
Encompass brand (2)		(4)		(2)		(23)		(10)		(10)		(2)		(6)		(12)
Esurance brand		-		-		-		-		-		-		-		-
Allstate Protection (2)	$	(61)	$	(38)	$	(157)	$	(191)	$	(161)	$	(207)	$	(99)	$	(368)
Effect of Prior Year Reserve
Reestimates on Combined Ratio (1)(3)
Auto		(1.2)		(1.0)		(1.5)		(2.0)		(1.3)		(0.7)		(1.1)		(1.0)
Homeowners		0.2		0.6		(1.1)		(1.1)		(0.8)		(1.8)		0.4		(1.3)
Other personal lines		0.1		(0.2)		0.3		0.2		(0.3)		(0.6)		-		(0.5)
Allstate Protection		(0.9)		(0.6)		(2.3)		(2.9)		(2.4)		(3.1)		(0.7)		(2.8)
Discontinued Lines and Coverages		0.1		-		-		0.7		-		-		-		0.1
Property-Liability		(0.8)		(0.6)		(2.3)		(2.2)		(2.4)		(3.1)		(0.7)		(2.7)
Allstate brand		(0.8)		(0.5)		(2.0)		(2.7)		(2.3)		(3.1)		(0.7)		(2.7)
Encompass brand		(0.1)		(0.1)		(0.3)		(0.2)		(0.1)		-		-		(0.1)
Esurance brand		-		-		-		-		-		-		-		-
Allstate Protection		(0.9)		(0.6)		(2.3)		(2.9)		(2.4)		(3.1)		(0.7)		(2.8)

(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 $15 million, $3 million and $18 million and $88 million, $5 million and $93 million, respectively, in the three months ended June 30, 2013 and 2012, respectively. Favorable reserve reestimates included in catastrophe losses for Allstate Brand, Encompass Brand and Allstate Protection totaled $46 million, $4 million and $50 million and $246 million, $8 million and $254 million, respectively, in the six months ended June 30, 2013 and 2012, respectively.
(3)	Calculated using Property-Liability premiums earned for the respective period.

31

THE ALLSTATE CORPORATION

ASBESTOS AND ENVIRONMENTAL RESERVES

($ in millions)

		Three months ended				Twelve months ended December 31,
		June 30,		March 31,
		2013		2013		2012		2011		2010		2009		2008
(net of reinsurance)
Asbestos claims
Beginning reserves	$	1,004	$	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		(31)		(22)		(78)		(48)		(85)		(40)		(82)
Ending reserves	$	973	$	1,004	$	1,026	$	1,078	$	1,100	$	1,180	$	1,228
Claims and claims expense paid as a percent of ending reserves		3.2%		2.2%		7.6%		4.5%		7.7%		3.4%		6.7%
Environmental claims
Beginning reserves	$	192	$	193	$	185	$	201	$	198	$	195	$	232
Incurred claims and claims expense		-		-		22		-		18		13		-
Claims and claims expense paid		(3)		(1)		(14)		(16)		(15)		(10)		(37)
Ending reserves	$	189	$	192	$	193	$	185	$	201	$	198	$	195
Claims and claims expense paid as a percent of ending reserves		1.6%		0.5%		7.3%		8.6%		7.5%		5.1%		19.0%

32

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL RESULTS

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Premiums	$	307	$	303	$	299	$	291	$	291	$	287	$	610	$	578
Contract charges		272		276		267		272		268		266		548		534
Net investment income		633		635		665		632		663		687		1,268		1,350
Periodic settlements and accruals on non-hedge derivative instruments		5		10		10		15		15		15		15		30
Contract benefits		(471)		(458)		(464)		(453)		(462)		(439)		(929)		(901)
Interest credited to contractholder funds		(315)		(336)		(347)		(357)		(362)		(368)		(651)		(730)
Amortization of deferred policy acquisition costs		(65)		(76)		(71)		(117)		(76)		(86)		(141)		(162)
Operating costs and expenses		(140)		(148)		(152)		(147)		(135)		(142)		(288)		(277)
Restructuring and related charges		(1)		(2)		-		-		-		-		(3)		-
Income tax expense on operations		(68)		(60)		(63)		(39)		(64)		(70)		(128)		(134)
Operating income		157		144		144		97		138		150		301		288
Realized capital gains and losses, after-tax		37		12		37		(36)		5		(14)		49		(9)
Valuation changes on embedded derivatives that are not hedged, after-tax		3		(6)		(6)		97		(3)		(6)		(3)		(9)
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(4)		1		(4)		(28)		-		(10)		(3)		(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		(4)		(6)		(7)		(9)		(10)		(10)		(10)		(20)
Gain on disposition of operations, after-tax		1		1		2		6		2		2		2		4
Net income available to common shareholders	$	190	$	146	$	166	$	131	$	132	$	112	$	336	$	244

33

ALLSTATE FINANCIAL

RETURN ON ATTRIBUTED EQUITY

($ in millions)

	Twelve months ended
		June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
		2013			2013			2012			2012			2012			2012
Return on Attributed Equity
Numerator:
Net income available to common shareholders(1)	$	633		$	575		$	541		$	510		$	571		$	600
Denominator:
Beginning attributed equity (2)	$	7,737		$	7,475		$	7,230		$	7,044		$	6,868		$	6,568
Ending attributed equity		8,224			8,617			8,446			8,291			7,737			7,475
Average attributed equity (3)	$	7,981		$	8,046		$	7,838		$	7,668		$	7,303		$	7,022
Return on attributed equity		7.9	%		7.1	%		6.9	%		6.7	%		7.8	%		8.5	%
Operating Income Return on Attributed Equity
Numerator:
Operating income (1)	$	542		$	523		$	529		$	515		$	547		$	544
Denominator:
Beginning attributed equity (2)	$	7,737		$	7,475		$	7,230		$	7,044		$	6,868		$	6,568
Unrealized net capital gains and losses		1,240			1,073			842			776			792			656
Adjusted ending attributed equity		6,497			6,402			6,388			6,268			6,076			5,912
Ending attributed equity		8,224			8,617			8,446			8,291			7,737			7,475
Unrealized net capital gains and losses		1,120			1,702			1,678			1,666			1,240			1,073
Adjusted ending attributed equity		7,104			6,915			6,768			6,625			6,497			6,402
Average adjusted attributed equity (3)	$	6,801		$	6,659		$	6,578		$	6,447		$	6,287		$	6,157
Operating income return on attributed equity		8.0	%		7.9	%		8.0	%		8.0	%		8.7	%		8.8	%

(1)	Net income available to common shareholders 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.

34

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL PREMIUMS AND CONTRACT CHARGES

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
PREMIUMS AND CONTRACT CHARGES - BY PRODUCT
Underwritten Products
Traditional life insurance premiums	$	119	$	116	$	123	$	117	$	117	$	113	$	235	$	230
Accident and health insurance premiums		179		180		167		164		160		162		359		322
Interest-sensitive life insurance contract charges		268		273		265		267		263		260		541		523
		566		569		555		548		540		535		1,135		1,075
Annuities
Immediate annuities with life contingencies premiums		9		7		9		10		14		12		16		26
Other fixed annuity contract charges		4		3		2		5		5		6		7		11
		13		10		11		15		19		18		23		37
Total	$	579	$	579	$	566	$	563	$	559	$	553	$	1,158	$	1,112
PREMIUMS AND CONTRACT CHARGES - BY DISTRIBUTION CHANNEL
Allstate agencies (1)	$	281	$	276	$	278	$	261	$	272	$	266	$	557	$	538
Workplace enrolling agents		189		188		180		174		170		170		377		340
Other (2)		109		115		108		128		117		117		224		234
Total	$	579	$	579	$	566	$	563	$	559	$	553	$	1,158	$	1,112
ISSUED LIFE INSURANCE POLICIES BY DISTRIBUTION CHANNEL(3)
Allstate agencies (1)		34,074		36,421		50,428		32,076		30,544		29,714		70,495		60,258
Other		618		879		1,006		766		780		876		1,497		1,656
Total		34,692		37,300		51,434		32,842		31,324		30,590		71,992		61,914
ALLSTATE BENEFITS NEW BUSINESS WRITTEN PREMIUMS (4)	$	64	$	52	$	136	$	62	$	59	$	53	$	116	$	112

(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.

35

THE ALLSTATE CORPORATION

CHANGE IN CONTRACTHOLDER FUNDS

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Beginning balance	$	38,807	$	39,319	$	40,110	$	40,832	$	41,603	$	42,332	$	39,319	$	42,332
Deposits
Fixed annuities		281		287		318		272		185		153		568		338
Interest-sensitive life insurance		328		386		357		323		335		332		714		667
Total deposits		609		673		675		595		520		485		1,282		1,005
Interest credited		314		350		362		213		369		379		664		748
Benefits, withdrawals, maturities and other adjustments
Benefits		(399)		(395)		(434)		(341)		(331)		(357)		(794)		(688)
Surrenders and partial withdrawals		(845)		(891)		(1,157)		(941)		(949)		(943)		(1,736)		(1,892)
Maturities of and interest payments on institutional products		(1,797)		(1)		(48)		(1)		(88)		(1)		(1,798)		(89)
Contract charges		(274)		(277)		(272)		(264)		(266)		(264)		(551)		(530)
Net transfers from separate accounts		5		1		4		3		2		2		6		4
Other adjustments		(63)		28		79		14		(28)		(30)		(35)		(58)
Total benefits, withdrawals, maturities and other adjustments		(3,373)		(1,535)		(1,828)		(1,530)		(1,660)		(1,593)		(4,908)		(3,253)
Ending balance	$	36,357	$	38,807	$	39,319	$	40,110	$	40,832	$	41,603	$	36,357	$	40,832

36

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL ANALYSIS OF NET INCOME

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Benefit spread
Premiums	$	307	$	303	$	299	$	291	$	291	$	287	$	610	$	578
Cost of insurance contract charges (1)		179		180		173		180		173		170		359		343
Contract benefits excluding the implied interest on immediate annuities with life contingencies (2)		(341)		(325)		(331)		(318)		(326)		(305)		(666)		(631)
Total benefit spread		145		158		141		153		138		152		303		290
Investment spread
Net investment income		633		635		665		632		663		687		1,268		1,350
Implied interest on immediate annuities with life contingencies (2)		(130)		(133)		(133)		(135)		(136)		(134)		(263)		(270)
Interest credited to contractholder funds		(311)		(345)		(357)		(215)		(366)		(378)		(656)		(744)
Total investment spread		192		157		175		282		161		175		349		336
Surrender charges and contract maintenance expense fees (1)		93		96		94		92		95		96		189		191
Realized capital gains and losses		57		19		56		(56)		8		(21)		76		(13)
Amortization of deferred policy acquisition costs		(71)		(75)		(77)		(146)		(77)		(101)		(146)		(178)
Operating costs and expenses		(140)		(148)		(152)		(147)		(135)		(142)		(288)		(277)
Restructuring and related charges		(1)		(2)		-		-		-		-		(3)		-
Gain on disposition of operations		1		2		3		9		3		3		3		6
Income tax expense		(86)		(61)		(74)		(56)		(61)		(50)		(147)		(111)
Net income available to common shareholders	$	190	$	146	$	166	$	131	$	132	$	112	$	336	$	244
Benefit spread by product group
Life insurance	$	75	$	86	$	79	$	90	$	87	$	91	$	161	$	178
Accident and health insurance		86		89		82		76		72		73		175		145
Annuities		(16)		(17)		(20)		(13)		(21)		(12)		(33)		(33)
Total benefit spread	$	145	$	158	$	141	$	153	$	138	$	152	$	303	$	290
Investment spread by product group
Annuities and institutional products	$	88	$	59	$	85	$	39	$	71	$	97	$	147	$	168
Life insurance		25		27		21		23		20		18		52		38
Accident and health insurance		7		6		6		7		6		6		13		12
Net investment income on investments supporting capital		67		74		72		64		68		64		141		132
Investment spread before valuation changes on embedded derivatives that are not hedged		187		166		184		133		165		185		353		350
Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged		5		(9)		(9)		149		(4)		(10)		(4)		(14)
Total investment spread	$	192	$	157	$	175	$	282	$	161	$	175	$	349	$	336
(1) Reconciliation of contract charges
Cost of insurance contract charges	$	179	$	180	$	173	$	180	$	173	$	170	$	359	$	343
Surrender charges and contract maintenance expense fees		93		96		94		92		95		96		189		191
Total contract charges	$	272	$	276	$	267	$	272	$	268	$	266	$	548	$	534
(2) Reconciliation of contract benefits
Contract benefits excluding the implied interest on immediate annuities with life contingencies	$	(341)	$	(325)	$	(331)	$	(318)	$	(326)	$	(305)	$	(666)	$	(631)
Implied interest on immediate annuities with life contingencies		(130)		(133)		(133)		(135)		(136)		(134)		(263)		(270)
Total contract benefits	$	(471)	$	(458)	$	(464)	$	(453)	$	(462)	$	(439)	$	(929)	$	(901)

37

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS

	Three months ended June 30, 2013						Three months ended June 30, 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	5.1	%	3.8	%	1.3	%	5.3	%	4.0	%	1.3	%
Deferred fixed annuities and institutional products	4.7		2.9		1.8		4.6		3.2		1.4
Immediate fixed annuities with and without life contingencies	6.8		6.0		0.8		6.9		6.2		0.7
Investments supporting capital, traditional life and other products	3.8		n/a		n/a		3.9		n/a		n/a

	Six months ended June 30, 2013						Six months ended June 30, 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		3.0		1.6		4.6		3.2		1.4
Immediate fixed annuities with and without life contingencies	6.5		6.0		0.5		7.3		6.1		1.2
Investments supporting capital, traditional life and other products	4.0		n/a		n/a		3.9		n/a		n/a

38

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL SUPPLEMENTAL PRODUCT INFORMATION

($ in millions)

		As of June 30, 2013				Twelve months ended June 30, 2013	Twelve months ended
							June		March		Dec.		Sept.		June		March
				Attributed equity			2013		2013		2012		2012		2012		2012
		Reserves and		excluding unrealized			Operating income return
		Contractholder funds		capital gains/losses (3)(4)		Operating income (5)	on attributed equity (%)
Underwritten products
Life insurance	$	14,422	$	2,922	$	234	8.6	%	8.9	%	9.0	%	9.0	%	10.8	%	11.3	%
Accident and health insurance		2,081		615		92	15.5		13.5		12.7		16.6		16.3		15.9
Subtotal		16,503		3,537		326	9.8		9.8		9.7		10.6		11.9		12.2
Annuities and institutional products:
Deferred Annuities		21,261		1,933		214	11.3		10.9		9.8		9.1		9.2		9.2
Immediate Annuities:
Sub-standard structured settlements and group pension terminations (1)		5,090		1,047		(18)	(1.8)		(1.9)		(0.7)		(0.7)		(0.7)		(1.0)
Standard structured settlements and SPIA (2)		7,655		541		28	5.5		5.1		9.0		5.3		5.3		5.7
Subtotal		12,745		1,588		10	0.7		0.4		2.4		1.1		1.1		0.9
Institutional products		90		46		(8)
Subtotal		34,096		3,567		216	6.2		6.0		6.5		5.7		5.9		5.9
Total Allstate Financial (6)	$	50,599	$	7,104	$	542	8.0		7.9		8.0		8.0		8.7		8.8

		Six months ended June 30, 2013
		Life		Accident and		Annuities and		Allstate
		insurance		health insurance		institutional products		Financial
Operating income	$	139	$	50	$	112	$	301
Realized capital gains and losses, after-tax		(4)		(1)		54		49
Valuation changes on embedded derivatives that are not hedged, after-tax		-		-		(3)		(3)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(1)		-		(2)		(3)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		-		-		(10)		(10)
(Loss) gain on disposition of operations, after-tax		(1)		-		3		2
Net income available to common shareholders	$	133	$	49	$	154	$	336

(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.
(6)	Reserves and contractholder funds included with the sale of Lincoln Benefit Life Company transaction and the attributed equity comprise 27% of life insurance and 38% of deferred annuity. Accident and health insurance reserves included with the sale have attributed equity of approximately $26 million and are mostly reinsured with a third party.

39

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE (1)

(in thousands)

	June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,
	2013	2013	2012	2012	2012	2012
ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE BY PRODUCT
Underwritten products
Life insurance	2,574	2,572	2,566	2,564	2,573	2,577
Accident and health insurance	2,322	2,338	2,117	2,114	2,094	2,077
	4,896	4,910	4,683	4,678	4,667	4,654
Annuities
Deferred annuities	362	373	385	398	408	421
Immediate annuities	113	114	114	115	115	115
	475	487	499	513	523	536
Total	5,371	5,397	5,182	5,191	5,190	5,190
ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE BY SOURCE OF BUSINESS
Allstate Agencies (2)	1,936	1,930	1,929	1,924	1,925	1,925
Allstate Benefits	2,741	2,757	2,528	2,524	2,506	2,490
Other (3)	694	710	725	743	759	775
Total	5,371	5,397	5,182	5,191	5,190	5,190
INSURANCE POLICIES AND ANNUITIES IN FORCE INCLUDED IN LINCOLN BENEFIT LIFE SALE (4)
Life insurance	150	152	155	156	158	160
Deferred annuities	138	144	151	156	161	168
Total	288	296	306	312	319	328

(1)	Allstate Financial insurance policies and annuities in force reflect the number of contracts in force excluding sold blocks of business that remain on the balance sheet due to the dispositions of the business being effected through reinsurance arrangements. Also excluded are long-term care contracts for which the morbidity risk is 100% reinsured. Policy counts associated with our voluntary employee benefits group business reflect certificate counts as opposed to group counts.
(2)	Excludes Allstate Benefits products sold through Allstate Agencies, which are included in the Allstate Benefits line.
(3)	Primarily business sold by independent master brokerage agencies, banks/broker-dealers and specialized structured settlement brokers.
(4)	Amounts are included in counts above.

40

THE ALLSTATE CORPORATION

CORPORATE AND OTHER RESULTS

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2013		2013		2012		2012		2012		2012		2013		2012
Net investment income	$	8	$	7	$	6	$	9	$	11	$	11	$	15	$	22
Operating costs and expenses		(106)		(95)		(96)		(90)		(107)		(86)		(201)		(193)
Income tax benefit on operations		37		35		35		34		33		34		72		67
Preferred stock dividends		-		-		-		-		-		-		-		-
Operating loss		(61)		(53)		(55)		(47)		(63)		(41)		(114)		(104)
Realized capital gains and losses, after-tax		-		-		3		-		-		-		-		-
Loss on extinguishment of debt, after-tax		(312)		-		-		-		-		-		(312)		-
Net loss available to common shareholders	$	(373)	$	(53)	$	(52)	$	(47)	$	(63)	$	(41)	$	(426)	$	(104)

41

THE ALLSTATE CORPORATION

INVESTMENTS

($ in millions)

	PROPERTY-LIABILITY										ALLSTATE FINANCIAL
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
		2013		2013		2012		2012		2012		2013		2013		2012		2012		2012
Fixed income securities, at fair value:
Tax-exempt	$	5,754	$	6,470	$	7,419	$	8,002	$	7,915	$	2	$	2	$	3	$	28	$	29
Taxable		22,359		22,635		22,262		21,787		21,578		41,347		45,176		45,793		46,317		46,390
Equity securities, at fair value		3,932		4,037		3,671		3,660		3,470		573		402		366		216		211
Mortgage loans		479		488		493		498		494		5,934		5,946		6,077		6,406		6,434
Limited partnership interests		2,991		2,994		2,991		3,106		2,877		1,946		1,933		1,924		1,860		1,806
Short-term, at fair value		1,182		1,171		912		756		699		821		1,391		907		1,320		893
Other		813		600		467		200		253		1,958		2,003		1,929		2,008		1,971
Total	$	37,510	$	38,395	$	38,215	$	38,009	$	37,286	$	52,581	$	56,853	$	56,999	$	58,155	$	57,734
Fixed income securities, at amortized cost:
Tax-exempt	$	5,617	$	6,168	$	7,061	$	7,616	$	7,592	$	2	$	2	$	3	$	28	$	29
Taxable		21,930		21,721		21,311		20,752		20,878		39,371		41,582		42,043		42,495		43,464
Ratio of fair value to amortized cost		102.1%		104.4%		104.6%		105.0%		103.6%		105.0%		108.6%		108.9%		109.0%		106.7%
Equity securities, at cost	$	3,702	$	3,449	$	3,250	$	3,271	$	2,370	$	535	$	328	$	327	$	158	$	160
Short-term, at amortized cost		1,182		1,171		912		756		699		821		1,391		907		1,320		893
	CORPORATE AND OTHER										CONSOLIDATED
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		June 30,		March 31,		Dec. 31,		Sept 30,		June 30,
		2013		2013		2012		2012		2012		2013		2013		2012		2012		2012
Fixed income securities, at fair value:
Tax-exempt	$	578	$	604	$	616	$	724	$	775	$	6,334	$	7,076	$	8,038	$	8,754	$	8,719
Taxable		999		919		924		871		1,239		64,705		68,730		68,979		68,975		69,207
Equity securities, at fair value		-		-		-		-		-		4,505		4,439		4,037		3,876		3,681
Mortgage loans		-		-		-		-		-		6,413		6,434		6,570		6,904		6,928
Limited partnership interests		4		4		7		8		11		4,941		4,931		4,922		4,974		4,694
Short-term, at fair value		643		607		517		749		275		2,646		3,169		2,336		2,825		1,867
Other		-		-		-		-		-		2,771		2,603		2,396		2,208		2,224
Total	$	2,224	$	2,134	$	2,064	$	2,352	$	2,300	$	92,315	$	97,382	$	97,278	$	98,516	$	97,320
Fixed income securities, at amortized cost:
Tax-exempt	$	558	$	572	$	580	$	684	$	739	$	6,177	$	6,742	$	7,644	$	8,328	$	8,360
Taxable		997		912		917		857		1,223		62,298		64,215		64,271		64,104		65,565
Ratio of fair value to amortized cost		101.4%		102.6%		102.9%		103.5%		102.7%		103.7%		106.8%		107.1%		107.3%		105.4%
Equity securities, at cost	$	-	$	-	$	-	$	-	$	-	$	4,237	$	3,777	$	3,577	$	3,429	$	2,530
Short-term, at amortized cost		643		607		517		749		275		2,646		3,169		2,336		2,825		1,867

42

THE ALLSTATE CORPORATION

INVESTMENT PORTFOLIO DETAILS

($ in millions)

		Financial statement classification as of June 30, 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)	$	14,288	$	-	$	-	$	-	$	-	$	-	$	14,288
Infrastructure and real assets - equity		-		587		-		522		-		-		1,109
		14,288		587		-		522		-		-		15,397
Real estate
Real estate - debt		3,776		-		6,413		-		-		-		10,189
Real estate - equity		-		244		-		1,658		-		140		2,042
Tax credit funds		-		-		-		647		-		-		647
		3,776		244		6,413		2,305		-		140		12,878
Consumer goods (cyclical and non-cyclical) (1)		10,701		617		-		-		-		-		11,318
Banking & financial services
Banking		3,609		63		-		-		-		-		3,672
Financial services (1)		3,985		160		-		-		-		-		4,145
Credit card and student loan ABS		551		-		-		-		-		-		551
Consumer auto ABS		696		-		-		-		-		-		696
		8,841		223		-		-		-		-		9,064
Municipal - General obligation, revenue and taxable		7,948		-		-		-		-		-		7,948
Government & agencies
U.S. government and agencies		3,204		-		-		-		599		-		3,803
Foreign government		1,795		-		-		-		-		-		1,795
		4,999		-		-		-		599		-		5,598
Technology and communications
Communications		3,313		124		-		-		-		-		3,437
Technology		2,626		333		-		-		-		-		2,959
		5,939		457		-		-		-		-		6,396
Capital goods		5,324		208		-		-		-		-		5,532
Basic & other industries
Basic industry		2,930		108		-		-		-		-		3,038
Other industries (1)		1,017		-		-		-		-		-		1,017
		3,947		108		-		-		-		-		4,055
Transportation (1)		2,618		58		-		-		-		-		2,676
ABS other		2,229		-		-		-		-		-		2,229
Private equity		-		-		-		1,935		-		-		1,935
Emerging markets
Fixed income funds		-		769		-		-		-		-		769
Foreign government (2)		429		-		-		-		-		-		429
Equity index based funds		-		642		-		-		-		-		642
		429		1,411		-		-		-		-		1,840
Other equity market index based funds		-		592		-		-		-		-		592
Hedge funds		-		-		-		179		-		-		179
Other (3)		-		-		-		-		2,047		2,631		4,678
Total investments	$	71,039	$	4,505	$	6,413	$	4,941	$	2,646	$	2,771	$	92,315

(1) Includes municipal bonds

(2) Includes emerging market sovereign debt of $395 million.

(3) Other includes derivatives, policy loans, agent loans, bank loans and short-term investments.

43

THE ALLSTATE CORPORATION

LIMITED PARTNERSHIP INVESTMENTS

($ in millions)

	As of or three months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2013		2013		2012		2012		2012		2012
Investment position
Accounting basis
Cost method	$	1,441	$	1,425	$	1,406	$	1,456	$	1,363	$	1,278
Equity method		3,500		3,506		3,516		3,518		3,331		3,359
Total	$	4,941	$	4,931	$	4,922	$	4,974	$	4,694	$	4,637
Cost method-fair value (1)	$	1,795	$	1,748	$	1,714	$	1,756	$	1,656	$	1,534
Underlying investment
Private equity / debt funds	$	2,457	$	2,423	$	2,351	$	2,300	$	2,072	$	1,995
Real estate funds		1,658		1,635		1,563		1,524		1,358		1,230
Other (2)		826		873		1,008		1,150		1,264		1,412
Total	$	4,941	$	4,931	$	4,922	$	4,974	$	4,694	$	4,637
Segment
Property-Liability	$	2,991	$	2,994	$	2,991	$	3,106	$	2,877	$	2,889
Allstate Financial		1,946		1,933		1,924		1,860		1,806		1,729
Corporate and Other		4		4		7		8		11		19
Total	$	4,941	$	4,931	$	4,922	$	4,974	$	4,694	$	4,637
Total Income
Accounting basis
Cost method	$	45	$	26	$	58	$	17	$	23	$	13
Equity method		81		81		52		5		84		96
Total	$	126	$	107	$	110	$	22	$	107	$	109
Underlying investment
Private equity / debt funds	$	58	$	68	$	83	$	18	$	73	$	72
Real estate funds		77		34		36		17		39		31
Other (2)		(9)		5		(9)		(13)		(5)		6
Total	$	126	$	107	$	110	$	22	$	107	$	109
Segment
Property-Liability	$	89	$	77	$	68	$	11	$	68	$	41
Allstate Financial		37		30		42		11		39		67
Corporate and Other		—		—		—		—		—		1
Total	$	126	$	107	$	110	$	22	$	107	$	109

(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.

44

THE ALLSTATE CORPORATION

UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE

($ in millions)

		June 30, 2013					March 31, 2013					December 31, 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	$	203	$	3,204	106.8	$	297	$	4,257	107.5	$	326	$	4,713	107.4
Municipal		496		10,716	104.9		929		11,862	108.5		930		13,069	107.7
Corporate		1,647		47,616	103.6		3,300		49,567	107.1		3,594		48,537	108.0
Foreign government		125		2,224	106.0		200		2,365	109.2		227		2,517	109.9
Asset-backed securities (“ABS”)		9		3,476	100.3		18		3,597	100.5		1		3,624	100.0
Residential mortgage-backed securities (“RMBS”)		62		2,485	102.6		65		2,750	102.4		32		3,032	101.1
Commercial mortgage-backed securities (“CMBS”)		18		1,291	101.4		36		1,381	102.7		(12)		1,498	99.2
Redeemable preferred stock		4		27	117.4		4		27	117.4		4		27	117.4
Total fixed income securities		2,564		71,039	103.7		4,849		75,806	106.8		5,102		77,017	107.1
Equity securities		268		4,505	106.3		662		4,439	117.5		460		4,037	112.9
Short-term investments		-		2,646	100.0		-		3,169	100.0		-		2,336	100.0
Derivatives		(12)		200	n/a		(19)		223	n/a		(22)		133	n/a
EMA limited partnership interests (2)		-		n/a	n/a		8		n/a	n/a		7		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	2,820	$	78,390	103.7	$	5,500	$	83,637	107.0	$	5,547	$	83,523	107.1
Amounts recognized for:
Insurance reserves (3)		(76)					(623)					(771)
DAC and DSI (4)		(199)					(404)					(412)
Amounts recognized		(275)					(1,027)					(1,183)
Deferred income taxes		(894)					(1,568)					(1,530)
Unrealized net capital gains and losses, after-tax	$	1,651				$	2,905				$	2,834

		September 30, 2012					June 30, 2012					March 31, 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	$	371	$	4,772	108.4	$	374	$	5,246	107.7	$	282	$	5,541	105.4
Municipal		922		13,970	107.1		805		13,892	106.2		644		13,614	105.0
Corporate		3,810		48,154	108.6		3,025		47,254	106.8		2,512		46,331	105.7
Foreign government		240		2,255	111.9		227		2,169	111.7		195		1,989	110.9
ABS		(30)		3,673	99.2		(105)		3,949	97.4		(130)		4,242	97.0
RMBS		4		3,348	100.1		(212)		3,675	94.5		(231)		3,728	94.2
CMBS		(25)		1,530	98.4		(115)		1,716	93.7		(111)		1,753	94.0
Redeemable preferred stock		5		27	122.7		2		25	108.7		2		25	108.7
Total fixed income securities		5,297		77,729	107.3		4,001		77,926	105.4		3,163		77,223	104.3
Equity securities		447		3,876	113.0		251		3,681	107.3		417		3,847	112.2
Short-term investments		-		2,825	100.0		-		1,867	100.0		-		1,886	100.0
Derivatives		(19)		251	n/a		(16)		187	n/a		(21)		273	n/a
EMA limited partnership interests (2)		6		n/a	n/a		4		n/a	n/a		1		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	5,731	$	84,681	107.3	$	4,240	$	83,661	105.3	$	3,560	$	83,229	104.5
Amounts recognized for:
Insurance reserves (3)		(876)					(700)					(443)
DAC and DSI (4)		(420)					(352)					(230)
Amounts recognized		(1,296)					(1,052)					(673)
Deferred income taxes		(1,555)					(1,118)					(1,013)
Unrealized net capital gains and losses, after-tax	$	2,880				$	2,070				$	1,874

(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.

45

THE ALLSTATE CORPORATION

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

($ in millions)

	Three months ended																Six months ended
		June 30,			March 31,		Dec. 31,		Sept. 30,			June 30,			March 31,		June 30,		June 30,
		2013			2013		2012		2012			2012			2012		2013		2012
NET INVESTMENT INCOME
Fixed income securities	$	740		$	762	$	793	$	817		$	818		$	806	$	1,502	$	1,624
Equity securities		39			25		53		29			24			21		64		45
Mortgage loans		93			98		97		92			92			93		191		185
Limited partnership interests		126			107		110		22			107			109		233		216
Short-term		1			2		2		2			1			1		3		2
Other		39			37		35		33			34			30		76		64
Sub-total		1,038			1,031		1,090		995			1,076			1,060		2,069		2,136
Less: Investment expense		(54)			(48)		(57)		(55)			(50)			(49)		(102)		(99)
Net investment income	$	984		$	983	$	1,033	$	940		$	1,026		$	1,011	$	1,967	$	2,037
PRE-TAX YIELDS (1)
Fixed income securities		4.2	%		4.3	%	4.4	%	4.5	%		4.4	%		4.4	%	4.3	%	4.4	%
Equity securities		3.9			2.8		6.1		3.4			2.8			2.2		3.3		2.4
Mortgage loans		5.8			6.0		5.7		5.4			5.2			5.2		5.9		5.2
Limited partnership interests		10.2			8.7		8.9		1.8			9.2			9.3		9.4		9.2
Total portfolio		4.6			4.5		4.7		4.3			4.6			4.6		4.5		4.6
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(33)		$	(10)	$	(54)	$	(43)		$	(49)		$	(39)	$	(43)	$	(88)
Change in intent write-downs		(27)			(27)		-		(3)			(1)			(44)		(54)		(45)
Net other-than-temporary impairment losses recognized in earnings		(60)			(37)		(54)		(46)			(50)			(83)		(97)		(133)
Sales		408			172		261		(24)			70			229		580		299
Valuation of derivative instruments		3			(4)		(12)		-			(10)			11		(1)		1
Settlements of derivative instruments		11			-		9		(2)			17			11		11		28
Total	$	362		$	131	$	204	$	(72)		$	27		$	168	$	493	$	195
TOTAL RETURN ON INVESTMENT PORTFOLIO (2)		(1.5)	%		1.2	%	1.1	%	2.4	%		1.8	%		2.0	%	(0.3)	%	3.8	%
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	90.7		$	91.8	$	92.2	$	92.9		$	93.2		$	93.1	$	91.0	$	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.

46

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY

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

($ in millions)

	Three months ended																Six months ended
		June 30,			March 31,		Dec. 31,		Sept. 30,			June 30,			March 31,		June 30,		June 30,
		2013			2013		2012		2012			2012			2012		2013		2012
NET INVESTMENT INCOME
Fixed income securities:
Tax-exempt	$	53		$	61	$	71	$	81		$	82		$	87	$	114	$	169
Taxable		178			188		188		194			192			178		366		370
Equity securities		36			23		49		28			22			19		59		41
Mortgage loans		5			5		5		5			5			6		10		11
Limited partnership interests (1)		89			77		68		11			68			41		166		109
Short-term		-			1		2		-			1			1		1		2
Other		8			8		5		4			3			2		16		5
Subtotal		369			363		388		323			373			334		732		707
Less: Investment expense		(26)			(22)		(26)		(24)			(21)			(21)		(48)		(42)
Net investment income	$	343		$	341	$	362	$	299		$	352		$	313	$	684	$	665
Net investment income, after-tax	$	259		$	241	$	258	$	220		$	254		$	232	$	500	$	486
PRE-TAX YIELDS (2)
Fixed income securities:
Tax-exempt		3.6	%		3.7	%	3.9	%	4.2	%		4.4	%		4.6	%	3.6	%	4.4	%
Equivalent yield for tax-exempt		5.2			5.4		5.7		6.1			6.4			6.7		5.2		6.4
Taxable		3.3			3.5		3.6		3.7			3.7			3.6		3.4		3.7
Equity securities		4.0			2.8		6.1		3.3			2.7			2.1		3.4		2.4
Mortgage loans		4.2			4.3		4.1		4.3			4.2			4.5		4.2		4.4
Limited partnership interests		11.8			10.4		8.9		1.5			9.5			5.5		11.1		7.4
Total portfolio		4.0			4.0		4.3		3.6			4.2			3.8		4.0		4.0
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
Fixed income securities:
Tax-exempt	$	39		$	47	$	23	$	8		$	(4)		$	25	$	86	$	21
Taxable		17			43		98		1			15			(5)		60		10
Equity securities		252			28		25		(14)			13			159		280		172
Limited partnership interests		(5)			5		1		-			1			11		-		12
Derivatives and other		2			(11)		(4)		(11)			(6)			(1)		(9)		(7)
Total	$	305		$	112	$	143	$	(16)		$	19		$	189	$	417	$	208
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(17)		$	(8)	$	(41)	$	(31)		$	(43)		$	(19)	$	(25)	$	(62)
Change in intent write-downs		(26)			(20)		-		(2)			(1)			(28)		(46)		(29)
Net other-than-temporary impairment
losses recognized in earnings		(43)			(28)		(41)		(33)			(44)			(47)		(71)		(91)
Sales		346			151		187		27			60			237		497		297
Valuation of derivative instruments		(3)			-		(2)		3			1			3		(3)		4
Settlements of derivative instruments		5			(11)		(1)		(13)			2			(4)		(6)		(2)
Total	$	305		$	112	$	143	$	(16)		$	19		$	189	$	417	$	208
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	36.7		$	36.5	$	36.3	$	36.1		$	35.8		$	35.4	$	36.6	$	35.6

(1)As of June 30, 2013, Property-Liability has commitments to invest in additional limited partnership interests totaling $1.17 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.

47

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL

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

($ in millions)

	Three months ended																Six months ended
		June 30,			March 31,		Dec. 31,		Sept. 30,			June 30,			March 31,		June 30,		June 30,
		2013			2013		2012		2012			2012			2012		2013		2012
NET INVESTMENT INCOME
Fixed income securities	$	503		$	506	$	527	$	532		$	534		$	531	$	1,009	$	1,065
Equity securities		3			2		4		1			2			2		5		4
Mortgage loans		88			93		92		87			87			87		181		174
Limited partnership interests (1)		37			30		42		11			39			67		67		106
Short-term		-			1		-		1			-			-		1		-
Other		30			28		29		29			29			27		58		56
Subtotal		661			660		694		661			691			714		1,321		1,405
Less: Investment expense		(28)			(25)		(29)		(29)			(28)			(27)		(53)		(55)
Net investment income	$	633		$	635	$	665	$	632		$	663		$	687	$	1,268	$	1,350
Net investment income, after-tax	$	422		$	424	$	440	$	420		$	437		$	455	$	846	$	892
PRE-TAX YIELDS (2)
Fixed income securities		5.0	%		4.8	%	5.0	%	4.9	%		4.9	%		4.8	%	4.9	%	4.9	%
Equity securities		3.0			2.6		6.2		4.5			5.2			3.9		2.7		4.6
Mortgage loans		5.9			6.2		5.9		5.5			5.3			5.2		6.0		5.3
Limited partnership interests		7.8			6.1		8.9		2.4			8.8			16.0		6.9		12.3
Total portfolio		5.1			5.0		5.2		4.9			5.0			5.2		5.1		5.1
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
Fixed income securities	$	23		$	(18)	$	54	$	(59)		$	(5)		$	(49)	$	5	$	(54)
Equity securities		31			1		1		(1)			-			-		32		-
Mortgage loans		(6)			31		3		(3)			9			(1)		25		8
Limited partnership interests		(3)			-		(1)		-			2			(1)		(3)		1
Derivatives and other		12			5		(1)		7			2			30		17		32
Total	$	57		$	19	$	56	$	(56)		$	8		$	(21)	$	76	$	(13)
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(16)		$	(2)	$	(13)	$	(12)		$	(6)		$	(20)	$	(18)	$	(26)
Change in intent write-downs		(1)			(7)		-		(1)			-			(16)		(8)		(16)
Net other-than-temporary impairment losses recognized in earnings		(17)			(9)		(13)		(13)			(6)			(36)		(26)		(42)
Sales		62			21		69		(51)			10			(8)		83		2
Valuation of derivative instruments		6			(4)		(10)		(3)			(11)			8		2		(3)
Settlements of derivative instruments		6			11		10		11			15			15		17		30
Total	$	57		$	19	$	56	$	(56)		$	8		$	(21)	$	76	$	(13)
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	51.9		$	53.2	$	53.7	$	54.5		$	55.0		$	55.3	$	52.3	$	55.1

(1)As of June 30, 2013, Allstate Financial has commitments to invest in additional limited partnership interests totaling $1.09 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.

48

THE ALLSTATE CORPORATION

INVESTMENT RESULTS

($ in millions)

	Three months ended																			Six months ended
		June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			June 30,			June 30,
		2013			2013			2012			2012			2012			2012			2013			2012
Consolidated investment portfolio
Core debt (1)	$	82,729		$	87,890		$	88,194		$	89,558		$	88,836		$	88,390		$	82,729		$	88,836
Equity/owned (2)		9,586			9,492			9,084			8,958			8,484			8,619			9,586			8,484
Total	$	92,315		$	97,382		$	97,278		$	98,516		$	97,320		$	97,009		$	92,315		$	97,320
Consolidated portfolio total return (3)
Core debt		(1.5)	%		0.8	%		0.8	%		2.2	%		1.8	%		1.4	%		(0.8)	%		3.3	%
Equity/owned		-			0.4			0.3			0.2			-			0.6			0.5			0.5
Total		(1.5)			1.2			1.1			2.4			1.8			2.0			(0.3)			3.8
Consolidated portfolio total return (3)
Income		1.0	%		1.0	%		1.1	%		1.0	%		1.0	%		1.0	%		2.0	%		2.1	%
Valuation		(2.5)			0.2			-			1.4			0.8			1.0			(2.3)			1.7
Total		(1.5)			1.2			1.1			2.4			1.8			2.0			(0.3)			3.8
Consolidated net investment income
Core debt	$	814		$	847		$	867		$	885		$	891		$	878		$	1,661		$	1,769
Equity/owned		170			136			166			55			135			133			306			268
Total	$	984		$	983		$	1,033		$	940		$	1,026		$	1,011		$	1,967		$	2,037
Consolidated core debt pre-tax yield (4)		4.3	%		4.3	%		4.4	%		4.4	%		4.4	%		4.4	%		4.3	%		4.4	%
Property-Liability net investment income
Core debt excluding prepayment premiums and litigation proceeds	$	208		$	224		$	234		$	251		$	258		$	252		$	432		$	510
Prepayment premiums and litigation proceeds		10			15			10			7			3			-			25			3
		218			239			244			258			261			252			457			513
Equity/owned		125			102			118			41			91			61			227			152
Total		343			341			362			299			352			313			684			665
Less: prepayment premiums and litigation proceeds		10			15			10			7			3			-			25			3
Total excluding prepayment premiums and litigation proceeds	$	333		$	326		$	352		$	292		$	349		$	313		$	659		$	662
Property-Liability core debt pre-tax yield		3.2	%		3.5	%		3.6	%		3.8	%		3.8	%		3.8	%		3.4	%		3.8	%
Property-Liability core debt pre-tax yield excluding prepayment premiums and litigation proceeds		3.1	%		3.3	%		3.5	%		3.7	%		3.8	%		3.8	%		3.2	%		3.8	%
Allstate Financial net investment income
Core debt excluding prepayment premiums and litigation proceeds	$	563		$	574		$	590		$	601		$	612		$	616		$	1,137		$	1,228
Prepayment premiums and litigation proceeds		27			27			27			17			7			-			54			7
Total core debt		590			601			617			618			619			616			1,191			1,235
Equity/owned		43			34			48			14			44			71			77			115
Total		633			635			665			632			663			687			1,268			1,350
Less: prepayment premiums and litigation proceeds		27			27			27			17			7			-			54			7
Total excluding prepayment premiums and litigation proceeds	$	606		$	608		$	638		$	615		$	656		$	687		$	1,214		$	1,343
Allstate Financial core debt pre-tax yield		5.0	%		4.9	%		5.0	%		4.9	%		4.9	%		4.8	%		5.0	%		4.9	%
Allstate Financial core debt pre-tax yield excluding prepayment premiums and litigation proceeds		4.8	%		4.7	%		4.8	%		4.8	%		4.8	%		4.8	%		4.8	%		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.

49

Definitions of Non-GAAP Measures

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

Operating income is net income available to common shareholders, excluding:

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

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

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

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

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

50