Exhibit 99.2

THE ALLSTATE CORPORATION

Investor Supplement

Second Quarter 2014

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 generally accepted accounting principles ("GAAP") measure herein.

THE ALLSTATE CORPORATION

Investor Supplement - Second Quarter 2014

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 Brand	13
	Impact of Net Rate Changes Approved on Premiums Written	14
	Policies in Force and Other Statistics	15
	Allstate Brand Profitability Measures	16
	Allstate Brand Statistics	17
	Encompass Brand Profitability Measures and Statistics	18
	Esurance Brand Profitability Measures and Statistics	19
	Auto Profitability Measures	20
	Homeowners Profitability Measures	21
	Other Personal Lines Profitability Measures	22
	Homeowners Supplemental Information	23
	Catastrophe Losses by Brand	24
	Effect of Catastrophe Losses on the Combined Ratio	25
	Catastrophe by Size of Event	26
	Prior Year Reserve Reestimates	27
	Asbestos and Environmental Reserves	28
	Allstate Personal Lines Profitability Measures	29
	Business to Business - Encompass, Commercial and Other Business Lines Profitability Measures	30
Allstate Financial Operations
	Allstate Financial Results	31
	Impact of LBL on Comparison of Allstate Financial Results	32
	Estimated Results of Disposed LBL Business	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
	Allstate Life and Retirement and Allstate Benefits Results and Product Information	41
Corporate and Other Results		42
Investments
	Investments	43
	Investment Portfolio Details	44
	Limited Partnership Investments	45
	Unrealized Net Capital Gains and Losses on Security Portfolio by Type	46
	Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	47
	Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	48
	Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax)	49
	Investment Results	50
Definitions of Non-GAAP Measures		51

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,
		2014			2014			2013			2013			2013			2013			2014			2013
Revenues
Property-liability insurance premiums	$	7,204		$	7,064		$	7,014		$	6,972		$	6,862		$	6,770		$	14,268		$	13,632
Life and annuity premiums and contract charges		518			607			610			584			579			579			1,125			1,158
Net investment income		898			959			1,026			950			984			983			1,857			1,967
Realized capital gains and losses:
Total other-than-temporary impairment losses		(44	)		(80	)		(29	)		(96	)		(55	)		(27	)		(124	)		(82	)
Portion of loss recognized in other comprehensive income		(1	)		(1	)		(1	)		8			(5	)		(10	)		(2	)		(15	)
Net other-than-temporary impairment losses recognized in earnings		(45	)		(81	)		(30	)		(88	)		(60	)		(37	)		(126	)		(97	)
Sales and other realized capital gains and losses		285			135			172			47			422			168			420			590
Total realized capital gains and losses		240			54			142			(41	)		362			131			294			493
Total revenues		8,860			8,684			8,792			8,465			8,787			8,463			17,544			17,250
Costs and expenses
Property-liability insurance claims and claims expense		5,142			4,759			4,283			4,427			4,741			4,460			9,901			9,201
Life and annuity contract benefits		413			488			490			498			471			458			901			929
Interest credited to contractholder funds		212			307			305			317			311			345			519			656
Amortization of deferred policy acquisition costs		1,035			1,035			1,069			1,026			961			946			2,070			1,907
Operating costs and expenses		1,023			1,094			1,258			937			1,090			1,102			2,117			2,192
Restructuring and related charges		4			6			11			13			20			26			10			46
Loss on extinguishment of debt		1			-			2			9			480			-			1			480
Interest expense		84			87			87			83			99			98			171			197
Total costs and expenses		7,914			7,776			7,505			7,310			8,173			7,435			15,690			15,608
Gain (loss) on disposition of operations		9			(59	)		(44	)		(646	)		-			2			(50	)		2
Income from operations before income tax expense		955			849			1,243			509			614			1,030			1,804			1,644
Income tax expense		310			249			422			193			180			321			559			501
Net income	$	645		$	600		$	821		$	316		$	434		$	709		$	1,245		$	1,143
Preferred stock dividends		31			13			11			6			-			-			44			-
Net income available to common shareholders	$	614		$	587		$	810		$	310		$	434		$	709		$	1,201		$	1,143
Earnings per common share: (1)
Net income available to common shareholders per common share - Basic	$	1.41		$	1.31		$	1.79		$	0.67		$	0.93		$	1.49		$	2.73		$	2.42
Weighted average common shares - Basic		434.3			446.4			452.8			461.1			468.3			475.4			440.4			471.9
Net income available to common shareholders per common share - Diluted	$	1.39		$	1.30		$	1.76		$	0.66		$	0.92		$	1.47		$	2.69		$	2.39
Weighted average common shares - Diluted		440.7			452.8			459.6			467.1			473.8			480.8			446.8			477.3
Cash dividends declared per common share	$	0.28		$	0.28		$	0.25		$	0.25		$	0.25		$	0.25		$	0.56		$	0.50

(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,
		2014		2014		2013		2013		2013		2013		2014		2013
Contribution to income
Operating income before the impact of restructuring and related charges	$	448	$	592	$	789	$	721	$	542	$	664	$	1,040	$	1,206
Restructuring and related charges, after-tax		(3)		(4)		(8)		(8)		(13)		(17)		(7)		(30)
Operating income *		445		588		781		713		529		647		1,033		1,176
Realized capital gains and losses, after-tax		154		35		94		(28)		234		85		189		319
Valuation changes on embedded derivatives that are not hedged, after-tax		(3)		(11)		(3)		(10)		3		(6)		(14)		(3)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		-		-		(3)		1		(4)		1		-		(3)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		-		-		7		-		-		-		-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		3		2		1		-		(3)		(5)		5		(8)
Amortization of purchased intangible assets, after-tax		(11)		(11)		(15)		(13)		(13)		(14)		(22)		(27)
Gain (loss) on disposition of operations, after-tax		26		(16)		(44)		(472)		-		1		10		1
Loss on extinguishment of debt, after-tax		-		-		(1)		(6)		(312)		-		-		(312)
Postretirement benefits curtailment gain, after-tax		-		-		-		118		-		-		-		-
Net income available to common shareholders	$	614	$	587	$	810	$	310	$	434	$	709	$	1,201	$	1,143
Income per common share - Diluted (1)
Operating income before the impact of restructuring and related charges	$	1.02	$	1.31	$	1.72	$	1.54	$	1.14	$	1.38	$	2.33	$	2.53
Restructuring and related charges, after-tax		(0.01)		(0.01)		(0.02)		(0.01)		(0.02)		(0.03)		(0.02)		(0.07)
Operating income		1.01		1.30		1.70		1.53		1.12		1.35		2.31		2.46
Realized capital gains and losses, after-tax		0.35		0.08		0.21		(0.06)		0.50		0.18		0.43		0.67
Valuation changes on embedded derivatives that are not hedged, after-tax		(0.01)		(0.02)		(0.01)		(0.02)		0.01		(0.02)		(0.03)		(0.01)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		-		-		(0.01)		-		(0.01)		-		-		(0.01)
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)
Amortization of purchased intangible assets, after-tax		(0.03)		(0.02)		(0.03)		(0.03)		(0.03)		(0.03)		(0.05)		(0.05)
Gain (loss) on disposition of operations, after-tax		0.06		(0.04)		(0.10)		(1.01)		-		-		0.02		-
Loss on extinguishment of debt, after-tax		-		-		-		(0.01)		(0.66)		-		-		(0.65)
Postretirement benefits curtailment gain, after-tax		-		-		-		0.25		-		-		-		-
Net income available to common shareholders	$	1.39	$	1.30	$	1.76	$	0.66	$	0.92	$	1.47	$	2.69	$	2.39
Weighted average common shares - Diluted		440.7		452.8		459.6		467.1		473.8		480.8		446.8		477.3

(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,
		2014		2014		2013		2013		2013		2013		2014		2013
Property-Liability
Property-Liability insurance premiums	$	7,204	$	7,064	$	7,014	$	6,972	$	6,862	$	6,770	$	14,268	$	13,632
Net investment income		351		312		382		309		343		341		663		684
Realized capital gains and losses		250		53		128		(26)		305		112		303		417
Total Property-Liability revenues		7,805		7,429		7,524		7,255		7,510		7,223		15,234		14,733
Allstate Financial
Life and annuity premiums and contract charges		518		607		610		584		579		579		1,125		1,158
Net investment income		538		640		637		633		633		635		1,178		1,268
Realized capital gains and losses		(10)		1		14		(16)		57		19		(9)		76
Total Allstate Financial revenues		1,046		1,248		1,261		1,201		1,269		1,233		2,294		2,502
Corporate and Other
Service fees (1)		1		2		3		3		2		1		3		3
Net investment income		9		7		7		8		8		7		16		15
Realized capital gains and losses		-		-		-		1		-		-		-		-
Total Corporate and Other revenues before reclassification of services fees		10		9		10		12		10		8		19		18
Reclassification of service fees (1)		(1)		(2)		(3)		(3)		(2)		(1)		(3)		(3)
Total Corporate and Other revenues		9		7		7		9		8		7		16		15
Consolidated revenues	$	8,860	$	8,684	$	8,792	$	8,465	$	8,787	$	8,463	$	17,544	$	17,250

(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,
		2014		2014		2013		2013		2013			2014		2014		2013		2013		2013
Assets											Liabilities
Investments											Reserve for property-liability insurance claims and claims expense	$	22,317	$	21,985	$	21,857	$	20,983	$	20,989
Fixed income securities, at fair value
(amortized cost $59,447, $58,587,											Reserve for life-contingent contract benefits		12,688		12,435		12,386		12,590		14,242
$59,008, $58,129 and $68,475)	$	62,634	$	61,161	$	60,910	$	60,295	$	71,039	Contractholder funds		23,472		23,989		24,304		24,476		36,357
Equity securities, at fair value											Unearned premiums		11,217		10,821		10,932		11,016		10,510
(cost $4,658, $4,575, $4,473,											Claim payments outstanding		851		785		631		702		745
$4,370 and $4,237)		5,394		5,297		5,097		4,812		4,505	Deferred income taxes		1,146		886		635		440		250
Mortgage loans		4,174		4,472		4,721		4,817		6,413	Other liabilities and accrued expenses		5,044		5,566		5,156		5,245		6,055
Limited partnership interests(2)		4,309		5,024		4,967		5,091		4,941	Short-term debt		-		-		-		-		500
Short-term, at fair value											Long-term debt		5,846		6,200		6,201		6,217		5,475
(amortized cost $2,914, $2,573,											Separate Accounts		4,780		4,878		5,039		4,928		6,488
$2,393, $2,694 and $2,646)		2,914		2,573		2,393		2,694		2,646	Liabilities held for sale		-		14,641		14,899		14,908		-
Other		3,138		3,163		3,067		2,774		2,771	Total liabilities		87,361		102,186		102,040		101,505		101,611
Total investments		82,563		81,690		81,155		80,483		92,315
											Equity
											Preferred stock and additional capital paid-in, 72.2 thousand, 62.2 thousand, 32.3 thousand, 26.9 thousand and 11.5 thousand outstanding		1,746		1,505		780		650		278
											Common stock, 434 million, 434 million, 449 million, 456 million, and 465 million shares outstanding		9		9		9		9		9
											Additional capital paid-in		3,035		3,017		3,143		3,127		3,105
											Retained income		36,532		36,041		35,580		34,885		34,691
											Deferred ESOP expense		(31)		(31)		(31)		(39)		(39)
											Treasury stock, at cost (466 million, 466 million, 451 million, 444 million and 435 million)		(19,985)		(19,922)		(19,047)		(18,662)		(18,225)
											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		72		66		50		33		36
Cash		889		1,170		675		1,069		634	Other unrealized net capital gains and losses		2,461		2,271		1,698		1,804		1,794
Premium installment receivables, net		5,384		5,271		5,237		5,341		5,116	Unrealized adjustment to DAC, DSI and insurance reserves		(383)		(246)		(102)		(123)		(179)
Deferred policy acquisition costs		3,377		3,316		3,372		3,286		3,914
Reinsurance recoverables, net(1)		7,500		7,512		7,621		6,938		8,346	Total unrealized net capital gains and losses		2,150		2,091		1,646		1,714		1,651
Accrued investment income		611		610		624		617		773
Property and equipment, net		990		1,024		1,024		993		971	Unrealized foreign currency translation adjustments		35		22		38		50		37
Goodwill		1,219		1,243		1,243		1,243		1,239	Unrecognized pension and other postretirement benefit cost		(619)		(627)		(638)		(954)		(1,638)
Other assets (2)		2,920		2,187		1,937		1,810		1,684
Separate Accounts		4,780		4,878		5,039		4,928		6,488	Total accumulated other comprehensive income		1,566		1,486		1,046		810		50
Assets held for sale		-		15,390		15,593		15,577		-
											Total shareholders’ equity		22,872		22,105		21,480		20,780		19,869
Total assets	$	110,233	$	124,291	$	123,520	$	122,285	$	121,480	Total liabilities and shareholders’ equity	$	110,233	$	124,291	$	123,520	$	122,285	$	121,480

(1)Reinsurance recoverables of unpaid losses related to Property-Liability were $4,695, $4,671 million, $4,664 million, $3,652 million and $3,613 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively.

(2) Tax credit funds, which totaled $592 million as of June 30, 2014, were reclassified from limited partnership interests to other assets as of June 30, 2014.

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,		March 31,
		2014		2014		2013		2013		2013		2013
Book value per common share
Numerator:
Common shareholders’ equity (1)	$	21,126	$	20,600	$	20,700	$	20,130	$	19,591	$	20,619
Denominator:
Common shares outstanding and dilutive potential common shares outstanding		440.4		441.1		456.9		462.9		470.6		474.4
Book value per common share	$	47.97	$	46.70	$	45.31	$	43.49	$	41.63	$	43.46
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities *
Numerator:
Common shareholders’ equity	$	21,126	$	20,600	$	20,700	$	20,130	$	19,591	$	20,619
Unrealized net capital gains and losses on fixed income securities		1,690		1,640		1,258		1,445		1,489		2,486
Adjusted common shareholders’ equity	$	19,436	$	18,960	$	19,442	$	18,685	$	18,102	$	18,133
Denominator:
Common shares outstanding and dilutive potential common shares outstanding		440.4		441.1		456.9		462.9		470.6		474.4
Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities	$	44.13	$	42.98	$	42.55	$	40.37	$	38.47	$	38.22

(1)Excludes equity related to preferred stock of $1,746 million, $1,505 million, $780 million, $650 million and $278 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively.

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,
		2014			2014			2013			2013			2013			2013
Return on Common Shareholders’ Equity
Numerator:
Net income available to common shareholders (1)	$	2,321		$	2,141		$	2,263		$	1,847		$	2,260		$	2,249
Denominator:
Beginning common shareholders’ equity	$	19,591		$	20,619		$	20,580		$	20,837		$	19,475		$	19,182
Ending common shareholders’ equity		21,126			20,600			20,700			20,130			19,591			20,619
Average common shareholders’ equity (2)	$	20,359		$	20,610		$	20,640		$	20,484		$	19,533		$	19,901
Return on common shareholders’ equity		11.4	%		10.4	%		11.0	%		9.0	%		11.6	%		11.3	%
Operating Income Return on Common Shareholders’ Equity *
Numerator:
Operating income (1)	$	2,527		$	2,611		$	2,670		$	2,178		$	2,182		$	2,085
Denominator:
Beginning 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 beginning common shareholders’ equity		17,940			17,714			17,746			17,957			17,405			17,308
Ending common shareholders’ equity		21,126			20,600			20,700			20,130			19,591			20,619
Unrealized net capital gains and losses		2,150			2,091			1,646			1,714			1,651			2,905
Adjusted ending common shareholders’ equity		18,976			18,509			19,054			18,416			17,940			17,714
Average adjusted common shareholders’ equity (2)	$	18,458		$	18,112		$	18,400		$	18,187		$	17,673		$	17,511
Operating income return on common shareholders’ equity		13.7	%		14.4	%		14.5	%		12.0	%		12.3	%		11.9	%

(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,
		2014			2014			2013			2013			2013			2013
Debt
Short-term debt	$	-		$	-		$	-		$	-		$	500		$	-
Long-term debt		5,846			6,200			6,201			6,217			5,475			6,556
Total debt	$	5,846		$	6,200		$	6,201		$	6,217		$	5,975		$	6,556
Capital resources
Debt	$	5,846		$	6,200		$	6,201		$	6,217		$	5,975		$	6,556
Shareholders’ equity
Preferred stock and additional capital paid-in		1,746			1,505			780			650			278			-
Common stock		9			9			9			9			9			9
Additional capital paid-in		3,035			3,017			3,143			3,127			3,105			3,028
Retained income		36,532			36,041			35,580			34,885			34,691			34,375
Deferred ESOP expense		(31)			(31)			(31)			(39)			(39)			(39)
Treasury stock		(19,985)			(19,922)			(19,047)			(18,662)			(18,225)			(18,033)
Unrealized net capital gains and losses		2,150			2,091			1,646			1,714			1,651			2,905
Unrealized foreign currency translation adjustments		35			22			38			50			37			58
Unrecognized pension and other postretirement benefit cost		(619)			(627)			(638)			(954)			(1,638)			(1,684)
Total shareholders’ equity		22,872			22,105			21,480			20,780			19,869			20,619
Total capital resources	$	28,718		$	28,305		$	27,681		$	26,997		$	25,844		$	27,175
Ratio of debt to shareholders’ equity		25.6	%		28.0	%		28.9	%		29.9	%		30.1	%		31.8	%
Ratio of debt to capital resources		20.4	%		21.9	%		22.4	%		23.0	%		23.1	%		24.1	%

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,
		2014		2014		2013		2013		2013		2013		2014		2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	645	$	600	$	821	$	316	$	434	$	709	$	1,245	$	1,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items		91		98		122		66		93		87		189		180
Realized capital gains and losses		(240)		(54)		(142)		41		(362)		(131)		(294)		(493)
Loss on extinguishment of debt		1		-		2		9		480		-		1		480
(Gain) loss on disposition of operations		(9)		59		44		646		-		(2)		50		(2)
Interest credited to contractholder funds		212		307		305		317		311		345		519		656
Changes in:
Policy benefits and other insurance reserves		121		(18)		732		(180)		(93)		(514)		103		(607)
Unearned premiums		379		(92)		(68)		505		311		(146)		287		165
Deferred policy acquisition costs		(80)		3		(60)		(101)		(77)		(30)		(77)		(107)
Premium installment receivables, net		(106)		(46)		95		(219)		(59)		(22)		(152)		(81)
Reinsurance recoverables, net		6		(45)		(1,023)		(33)		(79)		406		(39)		327
Income taxes		(127)		(68)		118		172		6		277		(195)		283
Other operating assets and liabilities		(166)		(270)		225		(21)		(152)		(239)		(436)		(391)
Net cash provided by operating activities		727		474		1,171		1,518		813		740		1,201		1,553
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales
Fixed income securities		7,722		6,483		5,889		4,893		4,987		5,474		14,205		10,461
Equity securities		1,416		1,328		942		489		1,532		210		2,744		1,742
Limited partnership interests		564		238		369		238		278		160		802		438
Mortgage loans		-		10		4		-		18		2		10		20
Other investments		51		30		58		55		23		15		81		38
Investment collections
Fixed income securities		881		849		1,029		1,221		1,913		1,745		1,730		3,658
Mortgage loans		402		324		237		308		238		237		726		475
Other investments		57		50		62		42		117		54		107		171
Investment purchases
Fixed income securities		(9,550)		(6,252)		(7,442)		(6,008)		(4,553)		(6,084)		(15,802)		(10,637)
Equity securities		(1,338)		(1,330)		(1,112)		(555)		(1,693)		(317)		(2,668)		(2,010)
Limited partnership interests		(376)		(277)		(401)		(434)		(222)		(255)		(653)		(477)
Mortgage loans		(107)		(2)		(115)		(109)		(239)		(75)		(109)		(314)
Other investments		(152)		(243)		(204)		(342)		(342)		(196)		(395)		(538)
Change in short-term investments, net		(249)		189		117		(121)		385		(808)		(60)		(423)
Change in other investments, net		13		36		5		1		57		34		49		91
Purchases of property and equipment, net		(69)		(55)		(91)		(73)		17		(60)		(124)		(43)
Disposition and acquisition of operations		380		(2)		-		(24)		-		-		378		-
Net cash provided by (used in) investing activities		(355)		1,376		(653)		(419)		2,516		136		1,021		2,652
CASH FLOWS FROM FINANCING ACTIVITIES
Change in short-term debt		-		-		-		(500)		500		-		-		500
Proceeds from issuance of long-term debt		-		-		4		786		989		492		-		1,481
Repayment of long-term debt		(354)		(1)		(22)		(65)		(2,540)		-		(355)		(2,540)
Proceeds from issuance of preferred stock		240		725		130		373		278		-		965		278
Contractholder fund deposits		263		403		566		489		528		591		666		1,119
Contractholder fund withdrawals		(838)		(1,084)		(1,098)		(1,185)		(3,014)		(1,259)		(1,922)		(4,273)
Dividends paid on common stock		(125)		(113)		(115)		(118)		(119)		-		(238)		(119)
Dividends paid on preferred stock		(13)		(12)		(6)		-		-		-		(25)		-
Treasury stock purchases		(142)		(1,115)		(449)		(488)		(158)		(739)		(1,257)		(897)
Shares reissued under equity incentive plans, net		72		77		62		48		43		17		149		60
Excess tax benefits on share-based payment arrangements		5		13		5		4		6		23		18		29
Other		(3)		(6)		(2)		5		(28)		13		(9)		(15)
Net cash used in financing activities		(895)		(1,113)		(925)		(651)		(3,515)		(862)		(2,008)		(4,377)
Cash classified as held for sale		242		(242)		13		(13)		-		-		-		-
NET INCREASE (DECREASE) IN CASH		(281)		495		(394)		435		(186)		14		214		(172)
CASH AT BEGINNING OF PERIOD		1,170		675		1,069		634		820		806		675		806
CASH AT END OF PERIOD	$	889	$	1,170	$	675	$	1,069	$	634	$	820	$	889	$	634

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, 2014
												Amortization
												relating to realized
												capital gains and
				DAC classified								losses and		Effect of
		Beginning		as held for sale		Total DAC including		Acquisition		Amortization		valuation changes on		unrealized				Ending
		balance		beginning		those classified		costs		before		embedded derivatives		capital gains		DAC sold in		balance
		March 31, 2014		balance		as held for sale		deferred		adjustments (1) (2)		that are not hedged(2)		and losses		LBL disposition		June 30, 2014
Property-Liability	$	1,626	$	-	$	1,626	$	1,047	$	(969)	$	-	$	-	$	-	$	1,704
Allstate Financial:
Traditional life and accident and health		714		13		727		42		(29)		-		-		(13)		727
Interest-sensitive life		934		674		1,608		28		(35)		(2)		(26)		(674)		899
Fixed annuity		42		27		69		-		(1)		1		(2)		(20)		47
Subtotal		1,690		714		2,404		70		(65)		(1)		(28)		(707)		1,673
Consolidated	$	3,316	$	714	$	4,030	$	1,117	$	(1,034)	$	(1)	$	(28)	$	(707)	$	3,377

		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

(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, 2014																			Acquisition Costs as of June 30, 2014
												Amortization
												relating to realized
												capital gains and								DAC before				DAC after
				DAC classified								losses and		Effect of						impact of		Impact of		impact of
		Beginning		as held for sale		Total DAC including		Acquisition		Amortization		valuation changes on		unrealized		DAC sold in		Ending		unrealized		unrealized		unrealized
		balance		beginning		those classified		costs		before		embedded derivatives		capital gains		LBL		balance		capital gains		capital gains		capital gains
		Dec. 31, 2013		balance		as held for sale		deferred (3)		adjustments (1) (2)		that are not hedged (2)		and losses		disposition		June 30, 2014		and losses		and losses		and losses
Property-Liability	$	1,625	$	-	$	1,625	$	2,009	$	(1,930)	$	-	$	-	$	-	$	1,704	$	1,704	$	-	$	1,704
Allstate Financial:
Traditional life and accident and health		711		13		724		81		(65)		-		-		(13)		727		727		-		727
Interest-sensitive life		991		700		1,691		56		(69)		(4)		(101)		(674)		899		1,068		(169)		899
Fixed annuity		45		30		75		-		(5)		3		(6)		(20)		47		58		(11)		47
Subtotal		1,747		743		2,490		137		(139)		(1)		(107)		(707)		1,673		1,853		(180)		1,673
Consolidated	$	3,372	$	743	$	4,115	$	2,146	$	(2,069)	$	(1)	$	(107)	$	(707)	$	3,377	$	3,557	$	(180)	$	3,377
	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 (3)		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

(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.

(3)  Annual deferred costs in 2013 included agent compensation of approximately $2.9 billion compared to an average annual cost of $2.7 billion in the three preceding years. The 2014 agent compensation plan is resulting in total compensation in line with 2013. Agent compensation was recognized at an increasing level during 2013 as more agents met the success factors.

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,
		2014		2014		2013		2013		2013		2013		2014		2013
Premiums written	$	7,547	$	6,969	$	6,950	$	7,438	$	7,151	$	6,625	$	14,516	$	13,776
(Increase) decrease in unearned premiums		(397)		112		84		(518)		(293)		155		(285)		(138)
Other		54		(17)		(20)		52		4		(10)		37		(6)
Premiums earned		7,204		7,064		7,014		6,972		6,862		6,770		14,268		13,632
Claims and claims expense		(5,142)		(4,759)		(4,283)		(4,427)		(4,741)		(4,460)		(9,901)		(9,201)
Amortization of deferred policy acquisition costs		(969)		(961)		(984)		(929)		(890)		(871)		(1,930)		(1,761)
Operating costs and expenses		(901)		(968)		(942)		(910)		(943)		(957)		(1,869)		(1,900)
Restructuring and related charges		(3)		(4)		(11)		(9)		(19)		(24)		(7)		(43)
Underwriting income *		189		372		794		697		269		458		561		727
Net investment income		351		312		382		309		343		341		663		684
Periodic settlements and accruals on non-hedge derivative instruments		(3)		(3)		(2)		(2)		(2)		(1)		(6)		(3)
Amortization of purchased intangible assets		17		17		23		21		20		21		34		41
Income tax expense on operations		(190)		(230)		(404)		(340)		(197)		(263)		(420)		(460)
Operating income		364		468		793		685		433		556		832		989
Realized capital gains and losses, after-tax		161		34		86		(17)		197		73		195		270
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		2		2		1		1		1		1		4		2
Amortization of purchased intangible assets, after-tax		(11)		(11)		(15)		(13)		(13)		(14)		(22)		(27)
Gain (loss) on disposition of operations, after-tax		38		-		-		-		(1)		-		38		(1)
Net income available to common shareholders	$	554	$	493	$	865	$	656	$	617	$	616	$	1,047	$	1,233
Catastrophe losses	$	936	$	445	$	117	$	128	$	647	$	359	$	1,381	$	1,006
Operating ratios
Claims and claims expense (“loss”) ratio		71.4		67.4		61.1		63.5		69.1		65.9		69.4		67.5
Expense ratio		26.0		27.3		27.6		26.5		27.0		27.3		26.7		27.2
Combined ratio		97.4		94.7		88.7		90.0		96.1		93.2		96.1		94.7
Combined ratio excluding the effect of catastrophes *		84.4		88.4		87.0		88.2		86.7		87.9		86.4		87.3
Effect of catastrophe losses on combined ratio		13.0		6.3		1.7		1.8		9.4		5.3		9.7		7.4
Combined ratio		97.4		94.7		88.7		90.0		96.1		93.2		96.1		94.7
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization of purchased intangible assets (“underlying”)		84.7		88.4		87.5		86.9		86.9		87.7		86.6		87.3
Effect of catastrophe losses on combined ratio		13.0		6.3		1.7		1.8		9.4		5.3		9.7		7.4
Effect of prior year reserve reestimates on combined ratio		(0.1)		(0.2)		(0.9)		0.5		(0.8)		(0.6)		(0.1)		(0.7)
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		(0.5)		-		0.1		0.5		0.3		0.5		(0.3)		0.4
Effect of amortization of purchased intangible assets on combined ratio		0.3		0.2		0.3		0.3		0.3		0.3		0.2		0.3
Combined ratio		97.4		94.7		88.7		90.0		96.1		93.2		96.1		94.7
Effect of restructuring and related charges on combined ratio		-		0.1		0.2		0.1		0.3		0.4		-		0.3
Effect of Discontinued Lines and Coverages on combined ratio		0.1		-		-		1.9		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,
		2014		2014		2013		2013		2013		2013		2014		2013
Property-Liability Underwriting Summary
Allstate Protection	$	192	$	375	$	795	$	831	$	273	$	462	$	567	$	735
Discontinued Lines and Coverages		(3)		(3)		(1)		(134)		(4)		(4)		(6)		(8)
Underwriting income	$	189	$	372	$	794	$	697	$	269	$	458	$	561	$	727
Allstate Protection Underwriting Summary
Premiums written	$	7,547	$	6,969	$	6,950	$	7,438	$	7,151	$	6,625	$	14,516	$	13,776
Premiums earned	$	7,204	$	7,064	$	7,014	$	6,972	$	6,862	$	6,770	$	14,268	$	13,632
Claims and claims expense		(5,140)		(4,756)		(4,282)		(4,292)		(4,738)		(4,457)		(9,896)		(9,195)
Amortization of deferred policy acquisition costs		(969)		(961)		(984)		(929)		(890)		(871)		(1,930)		(1,761)
Operating costs and expenses		(900)		(968)		(942)		(911)		(942)		(956)		(1,868)		(1,898)
Restructuring and related charges		(3)		(4)		(11)		(9)		(19)		(24)		(7)		(43)
Underwriting income	$	192	$	375	$	795	$	831	$	273	$	462	$	567	$	735
Catastrophe losses	$	936	$	445	$	117	$	128	$	647	$	359	$	1,381	$	1,006
Operating ratios
Loss ratio		71.3		67.3		61.1		61.6		69.0		65.9		69.3		67.4
Expense ratio		26.0		27.4		27.6		26.5		27.0		27.3		26.7		27.2
Combined ratio		97.3		94.7		88.7		88.1		96.0		93.2		96.0		94.6
Effect of catastrophe losses on combined ratio		13.0		6.3		1.7		1.8		9.4		5.3		9.7		7.4
Effect of restructuring and related charges on combined ratio		-		0.1		0.2		0.1		0.3		0.4		-		0.3
Effect of amortization of purchased intangible assets on combined ratio		0.2		0.2		0.3		0.3		0.3		0.3		0.2		0.3
Discontinued Lines and Coverages
Underwriting Summary
Premiums written	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Premiums earned	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Claims and claims expense		(2)		(3)		(1)		(135)		(3)		(3)		(5)		(6)
Operating costs and expenses		(1)		-		-		1		(1)		(1)		(1)		(2)
Underwriting loss	$	(3)	$	(3)	$	(1)	$	(134)	$	(4)	$	(4)	$	(6)	$	(8)
Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio		0.1		-		-		1.9		0.1		-		0.1		0.1
Underwriting Income by Brand
Allstate brand	$	299	$	478	$	814	$	871	$	346	$	520	$	777	$	866
Encompass brand		(59)		(8)		41		19		(7)		(6)		(67)		(13)
Esurance brand		(45)		(93)		(56)		(54)		(61)		(47)		(138)		(108)
Answer Financial		(3)		(2)		(4)		(5)		(5)		(5)		(5)		(10)
Underwriting income	$	192	$	375	$	795	$	831	$	273	$	462	$	567	$	735

12

THE ALLSTATE CORPORATION

PROPERTY-LIABILITY PREMIUMS WRITTEN BY BRAND

($ in millions)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2014		2014		2013		2013		2013		2013		2014		2013
Allstate brand (1)
Auto	$	4,375	$	4,292	$	4,147	$	4,280	$	4,170	$	4,155	$	8,667	$	8,325
Homeowners		1,765		1,342		1,549		1,779		1,693		1,268		3,107		2,961
Other personal lines		416		351		368		417		406		348		767		754
Commercial lines		130		116		119		114		121		112		246		233
Other business lines		180		176		157		161		151		133		356		284
		6,866		6,277		6,340		6,751		6,541		6,016		13,143		12,557
Encompass brand
Auto		176		151		155		172		167		147		327		314
Homeowners		136		110		115		129		120		97		246		217
Other personal lines		29		25		25		28		28		23		54		51
		341		286		295		329		315		267		627		582
Esurance brand
Auto		338		404		315		357		294		342		742		636
Homeowners		1		1		-		-		-		-		2		-
Other personal lines		1		1		-		1		1		-		2		1
		340		406		315		358		295		342		746		637
Allstate Protection		7,547		6,969		6,950		7,438		7,151		6,625		14,516		13,776
Discontinued Lines and Coverages		-		-		-		-		-		-		-		-
Property-Liability	$	7,547	$	6,969	$	6,950	$	7,438	$	7,151	$	6,625	$	14,516	$	13,776
Allstate Protection
Auto	$	4,889	$	4,847	$	4,617	$	4,809	$	4,631	$	4,644	$	9,736	$	9,275
Homeowners		1,902		1,453		1,664		1,908		1,813		1,365		3,355		3,178
Other personal lines		446		377		393		446		435		371		823		806
Commercial lines		130		116		119		114		121		112		246		233
Other business lines		180		176		157		161		151		133		356		284
	$	7,547	$	6,969	$	6,950	$	7,438	$	7,151	$	6,625	$	14,516	$	13,776
(1) Canada premiums included in Allstate brand
Auto	$	250	$	180	$	199	$	225	$	245	$	184	$	430	$	429
Homeowners		63		40		50		58		59		38		103		97
Other personal lines		15		11		13		14		15		13		26		28
	$	328	$	231	$	262	$	297	$	319	$	235	$	559	$	554

13

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, 2014 (1)					March 31, 2014				December 31, 2013
	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
Auto (2)	25	(6)	-	(8)	(0.2)	19		0.8	2.5	24	0.8	2.6
Homeowners (3)	11	(7)	0.4		5.7	8	(7)	0.2	2.3	21	1.5	4.5
Encompass brand
Auto	12		2.4		7.6	2		0.5	4.9	11	2.1	6.6
Homeowners	12		1.5		7.8	1		-	2.5	14	2.7	6.4
Esurance brand
Auto	15		1.7		4.4	17		2.2	8.2	16	1.1	5.5

	Three months ended			Three months ended			Three months ended
	September 30, 2013			June 30, 2013			March 31, 2013
	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
Auto (2)	12	0.7	3.1	15	0.1	0.5	15	0.3	1.8
Homeowners (3)	3	0.3	6.8	8	0.5	6.2	16	1.3	4.8
Encompass brand
Auto	9	1.4	5.7	14	1.6	4.8	5	0.8	5.6
Homeowners	11	1.4	6.9	15	1.9	4.8	3	1.4	7.0
Esurance brand
Auto	14	1.1	5.2	15	1.7	4.7	11	0.9	4.2

(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, 2014 are estimated to total $68 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. Allstate Brand rate changes exclude Canada and specialty auto in periods prior to first quarter 2014. In 2013, the Ontario government gave the Financial Services Commission of Ontario the authority to implement an average reduction of premium rates by 15%. The rate reductions are effective on new business beginning May 2014 and renewal contracts beginning July 2014 and represent an overall decrease of approximately 14%. This will reduce expected premiums written by approximately $35 million and premiums earned by approximately $11 million in 2014.
(2)	Impacts of Allstate brand auto effective rate changes as a percentage of total countrywide prior year-end premiums written were 1.1%, 0.5%, 0.5%, 0.7%, 0.2% and 0.5% for the three months ended June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. Rate changes are included in the effective calculations in the period the rate change is effective for renewal contracts. Therefore, the Canada rate changes referred to in Note 1 will be included in the effective calculations in third quarter 2014.
(3)	Impacts of Allstate brand homeowners effective rate changes as a percentage of total countrywide prior year-end premiums written were 0.5%, 1.3%, 0.4%, 0.3%, 1.2% and 1.7% for the three months ended June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, 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 three Canadian provinces for auto.
(7)	Includes two and one Canadian provinces for homeowners for the three months ended June, 30, 2014 and March 31, 2014, respectively.
(8)	Excluding Canada, countrywide rate changes were 0.5% for the three months ended June 30, 2014.

14

THE ALLSTATE CORPORATION

POLICIES IN FORCE AND OTHER STATISTICS

		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2014		2014		2013		2013		2013		2013
Policies in Force (in thousands) (1)
Allstate Brand
Auto		19,605		19,413		19,362		19,247		19,155		19,020
Homeowners		6,069		6,063		6,077		6,077		6,097		6,136
Landlord		738		740		742		742		744		748
Renter		1,421		1,402		1,385		1,371		1,364		1,364
Condominium		648		646		645		641		640		639
Other		1,245		1,244		1,252		1,260		1,267		1,273
Other personal lines		4,052		4,032		4,024		4,014		4,015		4,024
Commercial lines		313		305		301		295		291		286
Other business lines		972		991		989		996		997		1,001
Excess and surplus		25		23		22		20		18		15
Total		31,036		30,827		30,775		30,649		30,573		30,482
Encompass Brand
Auto		788		778		774		767		752		737
Homeowners		364		359		356		350		341		333
Other personal lines		124		124		125		124		124		121
Total		1,276		1,261		1,255		1,241		1,217		1,191
Esurance Brand
Auto		1,399		1,375		1,286		1,254		1,207		1,151
Homeowners		2		1		-		-		-		-
Other personal lines		30		26		20		16		11		7
Total		1,431		1,402		1,306		1,270		1,218		1,158
Total Policies in Force		33,743		33,490		33,336		33,160		33,008		32,831
Other Customer Relationships
Good Hands Roadside Members (in thousands) (2)		1,871		1,734		1,585		1,439		1,272		1,099
Non-Proprietary Premiums ($ in millions)
Ivantage (3)	$	1,414	$	1,396	$	1,394	$	1,389	$	1,363	$	1,310
Answer Financial (4)		125		139		118		122		111		126

(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 (service contracts and other products sold in conjunction with auto lending and vehicle sales transactions) and Partnership Marketing Group (roadside assistance products) statistics are not included in total policies in force since these are not meaningful. Additionally, non-proprietary products offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included.
(2)	Membership provides pay on demand access to roadside services. Fees for three months ended June 30, 2014 were $196 thousand.
(3)	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 reported 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, 2014 were $18.1 million.
(4)	Represents non-proprietary premiums written for the period. Fees for the three months ended June 30, 2014 were $17.2 million.

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,
			2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written		$	6,866	$	6,277	$	6,340	$	6,751	$	6,541	$	6,016	$	13,143	$	12,557
Net premiums earned
Auto			4,297		4,209		4,186		4,165		4,133		4,094		8,506		8,227
Homeowners			1,594		1,580		1,574		1,568		1,525		1,516		3,174		3,041
Other personal lines (1)			387		385		384		384		380		379		772		759
Commercial lines			121		110		115		114		113		114		231		227
Other business lines (2)			131		133		126		124		115		106		264		221
Total			6,530		6,417		6,385		6,355		6,266		6,209		12,947		12,475
Incurred losses
Auto			3,011		2,858		2,876		2,857		2,843		2,774		5,869		5,617
Homeowners			1,212		994		656		645		1,084		914		2,206		1,998
Other personal lines			226		279		187		221		239		247		505		486
Commercial lines			78		81		77		70		69		61		159		130
Other business lines			64		63		58		60		49		47		127		96
Total			4,591		4,275		3,854		3,853		4,284		4,043		8,866		8,327
Expenses
Auto			1,089		1,075		1,114		1,068		1,069		1,068		2,164		2,137
Homeowners			359		385		393		379		368		376		744		744
Other personal lines			105		108		115		108		113		115		213		228
Commercial lines			35		34		37		34		33		34		69		67
Other business lines			52		62		58		42		53		53		114		106
Total			1,640		1,664		1,717		1,631		1,636		1,646		3,304		3,282
Underwriting income (loss)
Auto			197		276		196		240		221		252		473		473
Homeowners			23		201		525		544		73		226		224		299
Other personal lines			56		(2)		82		55		28		17		54		45
Commercial lines			8		(5)		1		10		11		19		3		30
Other business lines			15		8		10		22		13		6		23		19
Total			299		478		814		871		346		520		777		866
Loss ratio			70.3		66.6		60.4		60.6		68.4		65.1		68.5		66.7
Expense ratio			25.1		26.0		26.9		25.7		26.1		26.5		25.5		26.3
Combined ratio			95.4		92.6		87.3		86.3		94.5		91.6		94.0		93.0
Effect of catastrophe losses on combined ratio			13.1		6.4		1.8		1.7		9.8		5.5		9.8		7.7
Effect of prior year reserve reestimates on combined ratio			(0.1)		(0.2)		(0.6)		(1.4)		(0.9)		(0.6)		(0.1)		(0.7)
Effect of advertising expenses on combined ratio			2.7		2.4		2.3		2.7		3.2		2.7		2.6		3.0
Combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)			83.0		86.4		86.1		85.4		85.4		86.2		84.7		85.8
Effect of catastrophe losses			13.1		6.4		1.8		1.7		9.8		5.5		9.8		7.7
Effect of prior year non-catastrophe reserve reestimates			(0.7)		(0.2)		(0.6)		(0.8)		(0.7)		(0.1)		(0.5)		(0.5)
Combined ratio			95.4		92.6		87.3		86.3		94.5		91.6		94.0		93.0

(1)  Other personal lines include renter, condominium, landlord and other personal lines.

(2)  Other business lines include Allstate Roadside Services, Allstate Dealer Services and other business lines.

16

THE ALLSTATE CORPORATION

ALLSTATE BRAND STATISTICS (1)

	Three months ended							Six months ended
		June 30,	March 31,	Dec. 31,	Sept. 30,	June 30,	March 31,	June 30,	June 30,
		2014	2014	2013	2013	2013	2013	2014	2013
New Issued Applications (in thousands) (2)
Auto		770	714	664	720	709	656	1,484	1,365
Homeowners		192	154	157	180	167	121	346	288
Average Premium - Gross Written ($) (3)
Auto		478	473	473	467	466	464	475	465
Homeowners		1,135	1,137	1,126	1,119	1,109	1,104	1,136	1,107
Average Premium - Net Earned ($) (4)
Auto		441	435	434	433	433	430	438	432
Homeowners		1,045	1,034	1,029	1,024	990	976	1,040	983
Renewal Ratio (%) (5)
Auto		89.1	89.0	88.7	88.7	88.6	88.4	89.1	88.5
Homeowners		88.3	88.2	88.1	88.0	87.5	87.2	88.3	87.3
Bodily Injury Claim Frequency
(% change year-over-year)
Auto		(2.8)	(0.3)	(1.7)	0.8	(1.1)	(2.4)	(1.6)	(1.7)
Property Damage Claim Frequency
(% change year-over-year)
Auto		(2.4)	5.1	1.4	0.6	(0.3)	(0.7)	1.2	(0.5)
Auto Paid Severity
(% change year-over-year)
Bodily injury		1.3	0.7	2.0	2.3	4.1	6.7	1.0	5.4
Property damage		4.4	2.7	3.2	0.8	3.7	(0.2)	3.5	1.7
Homeowners Excluding Catastrophe Losses
(% change year-over-year)
Claim frequency		2.3	6.1	(2.2)	(1.1)	0.6	1.2	4.2	0.9
Claim severity		5.5	8.3	0.2	(2.2)	1.3	(0.2)	6.9	0.5

(1)Statistics presented for Allstate brand exclude 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 brand.  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.

17

THE ALLSTATE CORPORATION

ENCOMPASS BRAND PROFITABILITY MEASURES AND STATISTICS

($ 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,
		2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written	$	341	$	286	$	295	$	329	$	315	$	267	$	627	$	582
Net premiums earned
Auto	$	162	$	161	$	155	$	158	$	158	$	155	$	323	$	313
Homeowners		120		117		114		111		105		100		237		205
Other personal lines		26		26		25		26		24		25		52		49
Total		308		304		294		295		287		280		612		567
Incurred losses
Auto	$	134	$	114	$	114	$	112	$	117	$	117	$	248	$	234
Homeowners		118		86		48		63		69		62		204		131
Other personal lines		21		21		-		13		21		20		42		41
Total		273		221		162		188		207		199		494		406
Expenses
Auto	$	50	$	48	$	49	$	47	$	48	$	47	$	98	$	95
Homeowners		37		35		35		34		33		32		72		65
Other personal lines		7		8		7		7		6		8		15		14
Total		94		91		91		88		87		87		185		174
Underwriting income (loss)
Auto	$	(22)	$	(1)	$	(8)	$	(1)	$	(7)	$	(9)	$	(23)	$	(16)
Homeowners		(35)		(4)		31		14		3		6		(39)		9
Other personal lines		(2)		(3)		18		6		(3)		(3)		(5)		(6)
Total		(59)		(8)		41		19		(7)		(6)		(67)		(13)
Loss ratio		88.7		72.7		55.1		63.7		72.1		71.1		80.7		71.6
Expense ratio		30.5		29.9		31.0		29.9		30.3		31.0		30.2		30.7
Combined ratio		119.2		102.6		86.1		93.6		102.4		102.1		110.9		102.3
Effect of catastrophe losses on combined ratio		23.7		11.2		0.3		5.8		10.1		4.6		17.5		7.4
Effect of prior year reserve reestimates on combined ratio		1.0		(0.7)		(7.5)		(5.1)		(1.4)		(0.7)		0.1		(1.1)
Effect of advertising expenses on combined ratio		0.6		0.7		0.3		-		0.7		0.7		0.7		0.7
Combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		94.8		91.8		91.8		92.5		92.7		97.9		93.3		95.2
Effect of catastrophe losses		23.7		11.2		0.3		5.8		10.1		4.6		17.5		7.4
Effect of prior year non-catastrophe reserve reestimates		0.7		(0.4)		(6.0)		(4.7)		(0.4)		(0.4)		0.1		(0.3)
Combined ratio		119.2		102.6		86.1		93.6		102.4		102.1		110.9		102.3
Policies in Force (in thousands)
Auto		788		778		774		767		752		737		788		752
Homeowners		364		359		356		350		341		333		364		341
Other personal lines		124		124		125		124		124		121		124		124
		1,276		1,261		1,255		1,241		1,217		1,191		1,276		1,217
New Issued Applications (in thousands)
Auto		40		33		36		43		41		35		73		76
Homeowners		20		17		18		22		22		17		37		39
Average Premium - Gross Written ($)
Auto		888		893		886		879		872		882		890		877
Homeowners		1,437		1,440		1,392		1,390		1,362		1,346		1,438		1,355
Renewal Ratio (%)
Auto		80.3		79.2		79.1		79.4		78.4		77.8		79.8		78.1
Homeowners		86.2		86.6		86.2		87.4		86.4		86.1		86.4		86.3

18

THE ALLSTATE CORPORATION

ESURANCE 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)		2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written	$	340	$	406	$	315	$	358	$	295	$	342	$	746	$	637
Net premiums earned
Auto	$	365	$	342	$	334	$	322	$	308	$	281	$	707	$	589
Other personal lines		1		1		1		-		1		-		2		1
		366		343		335		322		309		281		709		590
Incurred losses
Auto	$	275	$	260	$	266	$	251	$	246	$	215	$	535	$	461
Other personal lines		1		-		-		-		1		-		1		1
		276		260		266		251		247		215		536		462
Expenses
Auto	$	135	$	174	$	123	$	125	$	122	$	113	$	309	$	235
Other personal lines		-		2		2		-		1		-		2		1
		135		176		125		125		123		113		311		236
Underwriting loss
Auto	$	(45)	$	(92)	$	(55)	$	(54)	$	(60)	$	(47)	$	(137)	$	(107)
Other personal lines		-		(1)		(1)		-		(1)		-		(1)		(1)
		(45)		(93)		(56)		(54)		(61)		(47)		(138)		(108)
Loss ratio		75.4		75.8		79.4		78.0		79.9		76.5		75.6		78.3
Expense ratio		36.9		51.3		37.3		38.8		39.8		40.2		43.9		40.0
Combined ratio		112.3		127.1		116.7		116.8		119.7		116.7		119.5		118.3
Effect of catastrophe losses on combined ratio		2.7		0.3		0.3		0.6		1.6		1.1		1.6		1.4
Effect of prior year reserve reestimates on combined ratio		(1.4)		(0.9)		-		-		-		-		(1.1)		-
Effect of amortization of purchased intangible assets on combined ratio		3.3		3.5		4.5		4.7		5.2		5.3		3.3		5.3
Effect of advertising expenses on combined ratio		14.5		28.3		12.8		14.6		16.2		16.0		21.2		16.1
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, and amortization of purchased intangible assets (“underlying”)		107.7		124.2		111.9		111.5		112.9		110.3		115.7		111.6
Effect of catastrophe losses		2.7		0.3		0.3		0.6		1.6		1.1		1.6		1.4
Effect of prior year non-catastrophe reserve reestimates		(1.4)		(0.9)		-		-		-		-		(1.1)		-
Effect of amortization of purchased intangible assets		3.3		3.5		4.5		4.7		5.2		5.3		3.3		5.3
Combined ratio		112.3		127.1		116.7		116.8		119.7		116.7		119.5		118.3
Policies in Force (in thousands)
Auto		1,399		1,375		1,286		1,254		1,207		1,151		1,399		1,207
Homeowners		2		1		-		-		-		-		2		-
Other personal lines		30		26		20		16		11		7		30		11
		1,431		1,402		1,306		1,270		1,218		1,158		1,431		1,218
New Issued Applications (in thousands)
Auto		177		221		162		188		175		222		398		397
Homeowners		1		1		-		-		-		-		2		-
Other personal lines		10		10		7		7		6		5		20		11
		188		232		169		195		181		227		420		408
Average Premium - Gross Written ($)
Auto		497		504		483		480		481		494		503		487
Homeowners		822		691		752		-		-		-		805		-
Renewal Ratio (%)
Auto		80.1		80.4		80.1		79.9		81.7		81.2		80.3		81.5

19

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)		2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written
Allstate brand	$	4,375	$	4,292	$	4,147	$	4,280	$	4,170	$	4,155	$	8,667	$	8,325
Encompass brand		176		151		155		172		167		147		327		314
Esurance brand		338		404		315		357		294		342		742		636
		4,889		4,847		4,617		4,809		4,631		4,644		9,736		9,275
Net premiums earned
Allstate brand	$	4,297	$	4,209	$	4,186	$	4,165	$	4,133	$	4,094	$	8,506	$	8,227
Encompass brand		162		161		155		158		158		155		323		313
Esurance brand		365		342		334		322		308		281		707		589
		4,824		4,712		4,675		4,645		4,599		4,530		9,536		9,129
Incurred losses
Allstate brand	$	3,011	$	2,858	$	2,876	$	2,857	$	2,843	$	2,774	$	5,869	$	5,617
Encompass brand		134		114		114		112		117		117		248		234
Esurance brand		275		260		266		251		246		215		535		461
		3,420		3,232		3,256		3,220		3,206		3,106		6,652		6,312
Expenses
Allstate brand	$	1,089	$	1,075	$	1,114	$	1,068	$	1,069	$	1,068	$	2,164	$	2,137
Encompass brand		50		48		49		47		48		47		98		95
Esurance brand		135		174		123		125		122		113		309		235
		1,274		1,297		1,286		1,240		1,239		1,228		2,571		2,467
Underwriting income
Allstate brand	$	197	$	276	$	196	$	240	$	221	$	252	$	473	$	473
Encompass brand		(22)		(1)		(8)		(1)		(7)		(9)		(23)		(16)
Esurance brand		(45)		(92)		(55)		(54)		(60)		(47)		(137)		(107)
		130		183		133		185		154		196		313		350
Loss ratio
Allstate brand		70.1		67.9		68.7		68.6		68.8		67.7		69.0		68.3
Encompass brand		82.7		70.8		73.6		70.9		74.0		75.5		76.8		74.8
Esurance brand		75.3		76.0		79.7		78.0		79.9		76.5		75.7		78.3
Allstate Protection		70.9		68.6		69.6		69.3		69.7		68.6		69.7		69.2
Expense ratio
Allstate brand		25.3		25.5		26.6		25.6		25.9		26.1		25.4		26.0
Encompass brand		30.9		29.8		31.6		29.7		30.4		30.3		30.3		30.3
Esurance brand		37.0		50.9		36.8		38.8		39.6		40.2		43.7		39.9
Allstate Protection		26.4		27.5		27.6		26.7		27.0		27.1		27.0		27.0
Combined ratio
Allstate brand		95.4		93.4		95.3		94.2		94.7		93.8		94.4		94.3
Encompass brand		113.6		100.6		105.2		100.6		104.4		105.8		107.1		105.1
Esurance brand		112.3		126.9		116.5		116.8		119.5		116.7		119.4		118.2
Allstate Protection		97.3		96.1		97.2		96.0		96.7		95.7		96.7		96.2
Effect of catastrophe losses on combined ratio
Allstate brand		4.1		0.4		-		0.8		1.9		1.1		2.3		1.5
Encompass brand (1)		9.3		0.6		(0.6)		1.9		0.6		(0.6)		5.0		-
Esurance brand		2.7		0.3		0.3		0.6		1.6		1.1		1.6		1.4
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(0.6)		(0.9)		(0.9)		(0.8)		(1.8)		(1.6)		(0.7)		(1.7)
Encompass brand		(3.7)		(4.3)		(4.5)		(7.6)		(3.2)		(3.9)		(4.0)		(3.5)
Esurance brand		(1.4)		(0.9)		-		-		-		-		(1.1)		-
Effect of amortization of purchased intangible assets on combined ratio
Esurance brand		3.3		3.5		4.5		4.7		5.2		5.3		3.3		5.3
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		91.8		93.8		95.9		94.3		94.1		93.2		92.8		93.6
Effect of catastrophe losses on combined ratio		4.1		0.4		-		0.8		1.9		1.1		2.3		1.5
Effect of prior year non-catastrophe reserve reestimates on combined ratio		(0.5)		(0.8)		(0.6)		(0.9)		(1.3)		(0.5)		(0.7)		(0.8)
Allstate brand combined ratio		95.4		93.4		95.3		94.2		94.7		93.8		94.4		94.3
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		(0.1)		(0.1)		(0.3)		0.1		(0.5)		(1.1)		-		(0.9)

(1)Catastrophe losses increased during the first quarter of 2014 and first six months of 2014 as a result of several catastrophes in areas where Encompass has a concentration of policyholders.

20

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)		2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written
Allstate brand	$	1,765	$	1,342	$	1,549	$	1,779	$	1,693	$	1,268	$	3,107	$	2,961
Encompass brand		136		110		115		129		120		97		246		217
Esurance brand		1		1		-		-		-		-		2		-
		1,902		1,453		1,664		1,908		1,813		1,365		3,355		3,178
Net premiums earned
Allstate brand	$	1,594	$	1,580	$	1,574	$	1,568	$	1,525	$	1,516	$	3,174	$	3,041
Encompass brand		120		117		114		111		105		100		237		205
		1,714		1,697		1,688		1,679		1,630		1,616		3,411		3,246
Incurred losses
Allstate brand	$	1,212	$	994	$	656	$	645	$	1,084	$	914	$	2,206	$	1,998
Encompass brand		118		86		48		63		69		62		204		131
		1,330		1,080		704		708		1,153		976		2,410		2,129
Expenses
Allstate brand	$	359	$	385	$	393	$	379	$	368	$	376	$	744	$	744
Encompass brand		37		35		35		34		33		32		72		65
		396		420		428		413		401		408		816		809
Underwriting income
Allstate brand	$	23	$	201	$	525	$	544	$	73	$	226	$	224	$	299
Encompass brand		(35)		(4)		31		14		3		6		(39)		9
		(12)		197		556		558		76		232		185		308
Loss ratio
Allstate brand		76.1		62.9		41.6		41.1		71.1		60.3		69.5		65.7
Encompass brand		98.3		73.5		42.1		56.8		65.7		62.0		86.1		63.9
Allstate Protection		77.6		63.6		41.7		42.2		70.7		60.4		70.7		65.6
Expense ratio
Allstate brand		22.5		24.4		25.0		24.2		24.1		24.8		23.4		24.5
Encompass brand		30.9		29.9		30.7		30.6		31.4		32.0		30.4		31.7
Allstate Protection		23.1		24.8		25.4		24.6		24.6		25.2		23.9		24.9
Combined ratio
Allstate brand		98.6		87.3		66.6		65.3		95.2		85.1		92.9		90.2
Encompass brand		129.2		103.4		72.8		87.4		97.1		94.0		116.5		95.6
Allstate Protection		100.7		88.4		67.1		66.8		95.3		85.6		94.6		90.5
Effect of catastrophe losses on combined ratio
Allstate brand		38.7		21.3		7.1		4.7		32.5		18.7		30.0		25.6
Encompass brand (1)		46.7		25.6		1.8		13.5		23.8		12.0		36.3		18.0
Effect of prior year reserve reestimates on combined ratio
Allstate brand		2.1		0.8		(0.3)		(3.3)		1.0		2.6		1.4		1.8
Encompass brand		6.7		4.3		(4.4)		-		(1.0)		1.0		5.5		-
Allstate brand combined ratio excluding the effect of catastrophes and prior year reserve reestimates (“underlying”)		60.2		65.8		60.7		61.8		62.7		65.8		63.0		64.2
Effect of catastrophe losses on combined ratio		38.7		21.3		7.1		4.7		32.5		18.7		30.0		25.6
Effect of prior year non-catastrophe reserve reestimates on combined ratio		(0.3)		0.2		(1.2)		(1.2)		-		0.6		(0.1)		0.4
Allstate brand combined ratio		98.6		87.3		66.6		65.3		95.2		85.1		92.9		90.2
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio		2.4		0.6		0.9		(2.1)		1.0		2.0		1.5		1.4

(1) Catastrophe losses increased during the first quarter of 2014 and first six months of 2014 as a result of several catastrophes in areas where Encompass has a concentration of policyholders.

21

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)		2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written
Allstate brand	$	416	$	351	$	368	$	417	$	406	$	348	$	767	$	754
Encompass brand		29		25		25		28		28		23		54		51
Esurance brand		1		1		-		1		1		-		2		1
		446		377		393		446		435		371		823		806
Net premiums earned
Allstate brand	$	387	$	385	$	384	$	384	$	380	$	379	$	772	$	759
Encompass brand		26		26		25		26		24		25		52		49
Esurance brand		1		1		1		-		1		-		2		1
		414		412		410		410		405		404		826		809
Incurred losses
Allstate brand	$	226	$	279	$	187	$	221	$	239	$	247	$	505	$	486
Encompass brand		21		21		-		13		21		20		42		41
Esurance brand		1		-		-		-		1		-		1		1
		248		300		187		234		261		267		548		528
Expenses
Allstate brand	$	105	$	108	$	115	$	108	$	113	$	115	$	213	$	228
Encompass brand		7		8		7		7		6		8		15		14
Esurance brand		-		2		2		-		1		-		2		1
		112		118		124		115		120		123		230		243
Underwriting income
Allstate brand	$	56	$	(2)	$	82	$	55	$	28	$	17	$	54	$	45
Encompass brand		(2)		(3)		18		6		(3)		(3)		(5)		(6)
Esurance brand		-		(1)		(1)		-		(1)		-		(1)		(1)
		54		(6)		99		61		24		14		48		38
Loss ratio
Allstate brand		58.4		72.5		48.7		57.6		62.9		65.2		65.4		64.0
Encompass brand		80.8		80.8		-		50.0		87.5		80.0		80.8		83.7
Esurance brand		100.0		-		-		-		100.0		-		50.0		100.0
Allstate Protection		59.9		72.8		45.6		57.1		64.4		66.1		66.3		65.3
Expense ratio
Allstate brand		27.1		28.0		29.9		28.1		29.7		30.3		27.6		30.1
Encompass brand		26.9		30.7		28.0		26.9		25.0		32.0		28.8		28.5
Esurance brand		-		200.0		200.0		-		100.0		-		100.0		100.0
Allstate Protection		27.1		28.7		30.2		28.0		29.6		30.4		27.9		30.0
Combined ratio
Allstate brand		85.5		100.5		78.6		85.7		92.6		95.5		93.0		94.1
Encompass brand		107.7		111.5		28.0		76.9		112.5		112.0		109.6		112.2
Esurance brand		100.0		200.0		200.0		-		200.0		-		150.0		200.0
Allstate Protection		87.0		101.5		75.9		85.1		94.1		96.5		94.2		95.3
Effect of catastrophe losses on combined ratio
Allstate brand		12.4		12.7		1.0		(0.3)		8.7		4.7		12.6		6.7
Encompass brand		7.7		11.5		-		(3.8)		12.5		8.0		9.6		10.2
Esurance brand		-		-		-		-		-		-		-		-
Effect of prior year reserve reestimates on combined ratio
Allstate brand		(3.4)		3.9		-		2.6		4.2		0.3		0.3		2.2
Encompass brand		3.8		-		(40.0)		(11.5)		8.3		12.0		1.9		10.2
Esurance brand		-		-		-		-		-		-		-		-

(1)Other personal lines include renter, condominium, landlord and other personal lines.  Profitability measures for commercial and other business lines can be found on the Allstate Brand Profitability Measures page.

22

THE ALLSTATE CORPORATION

HOMEOWNERS SUPPLEMENTAL INFORMATION

($ in millions)

		Six months ended June 30, 2014
										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	$	69	$	35	50.7%	$	-	-
Other hurricane exposure states		1,788		1,249	69.9%		558	31.2%
Total hurricane exposure states (2)		1,857		1,284	69.1%		558	30.0%		7	2.4%
Other catastrophe exposure states (4)		1,554		1,126	72.5%		481	31.0%		18	6.8%
Total	$	3,411	$	2,410	70.7%	$	1,039	30.5%	42	25	4.7%

(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 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)  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.

(4)  Includes Canada

23

THE ALLSTATE CORPORATION

CATASTROPHE LOSSES BY BRAND

($ in millions)

		Three months ended												Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2014		2014		2013		2013		2013		2013		2014		2013
Allstate brand
Auto	$	178	$	16	$	1	$	35	$	79	$	43	$	194	$	122
Homeowners		617		336		112		74		496		284		953		780
Other personal lines		48		49		4		(1)		33		18		97		51
Commercial lines		10		9		(2)		1		5		(2)		19		3
Other business lines		-		-		-		-		-		-		-		-
Total		853		410		115		109		613		343		1,263		956
Encompass brand
Auto		15		1		(1)		3		1		(1)		16		-
Homeowners		56		30		2		15		25		12		86		37
Other personal lines		2		3		-		(1)		3		2		5		5
Total		73		34		1		17		29		13		107		42
Esurance brand
Auto		10		1		1		2		5		3		11		8
Other personal lines		-		-		-		-		-		-		-		-
Total		10		1		1		2		5		3		11		8
Allstate Protection	$	936	$	445	$	117	$	128	$	647	$	359	$	1,381	$	1,006
Allstate Protection
Auto	$	203	$	18	$	1	$	40	$	85	$	45	$	221	$	130
Homeowners		673		366		114		89		521		296		1,039		817
Other personal lines		50		52		4		(2)		36		20		102		56
Commercial lines		10		9		(2)		1		5		(2)		19		3
Other business lines		-		-		-		-		-		-		-		-
	$	936	$	445	$	117	$	128	$	647	$	359	$	1,381	$	1,006

24

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
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	1.8	1.7	4.5		27,618			1,251			1,352		4.9
2014	6.3	13.0	-	-	-		14,268			1,381			1,388		9.7
Average	5.3	11.5	15.3	6.2	9.5										6.5

25

THE ALLSTATE CORPORATION

CATASTROPHE BY SIZE OF EVENT

($ in millions, except ratios)

Three months ended June 30, 2014
										Average
	Number				Claims and			Combined		catastrophe
Size of catastrophe	of events				claims expense			ratio impact		loss per event
Greater than $250 million	-	-	%	$	-	-	%	-	$	-
$101 million to $250 million	2	6.9			322	34.4		4.5		161
$50 million to $100 million	3	10.3			208	22.2		2.9		69
Less than $50 million	24	82.8			347	37.1		4.8		14
Total	29	100.0	%		877	93.7		12.2		30
Prior year reserve reestimates					36	3.8		0.5
Prior quarter reserve reestimates					23	2.5		0.3
Total catastrophe losses				$	936	100.0	%	13.0

Six months ended June 30, 2014
										Average
	Number				Claims and			Combined		catastrophe
Size of catastrophe	of events				claims expense			ratio impact		loss per event
Greater than $250 million	1	2.4	%	$	258	18.7	%	1.8	$	258
$101 million to $250 million	2	4.8			322	23.3		2.3		161
$50 million to $100 million	4	9.5			293	21.2		2.0		73
Less than $50 million	35	83.3			470	34.0		3.3		13
Total	42	100.0	%		1,343	97.2		9.4		32
Prior year reserve reestimates					38	2.8		0.3
Total catastrophe losses				$	1,381	100.0	%	9.7

26

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,
		2014		2014		2013		2013		2013		2013		2014		2013
Prior Year Reserve Reestimates (1)
Auto	$	(36)	$	(48)	$	(44)	$	(44)	$	(79)	$	(70)	$	(84)	$	(149)
Homeowners		41		18		(10)		(51)		15		41		59		56
Other personal lines		(12)		15		(10)		7		18		4		3		22
Commercial lines		(1)		(1)		1		(13)		(14)		(10)		(2)		(24)
Other business lines		-		-		-		-		(1)		(3)		-		(4)
Allstate Protection		(8)		(16)		(63)		(101)		(61)		(38)		(24)		(99)
Discontinued Lines and Coverages		2		3		1		135		3		3		5		6
Property-Liability	$	(6)	$	(13)	$	(62)	$	34	$	(58)	$	(35)	$	(19)	$	(93)
Allstate brand (2)	$	(6)	$	(11)	$	(41)	$	(86)	$	(57)	$	(36)	$	(17)	$	(93)
Encompass brand (2)		3		(2)		(22)		(15)		(4)		(2)		1		(6)
Esurance brand		(5)		(3)		-		-		-		-		(8)		-
Allstate Protection (2)	$	(8)	$	(16)	$	(63)	$	(101)	$	(61)	$	(38)	$	(24)	$	(99)
Effect of Prior Year Reserve
Reestimates on Combined Ratio (1)(3)
Auto		(0.5)		(0.7)		(0.5)		(0.6)		(1.2)		(1.0)		(0.6)		(1.1)
Homeowners		0.6		0.3		(0.2)		(0.7)		0.2		0.6		0.4		0.4
Other personal lines		(0.2)		0.2		(0.2)		0.1		0.3		-		-		0.2
Commercial lines		-		-		-		(0.2)		(0.2)		(0.2)		-		(0.2)
Other business lines		-		-		-		-		-		-		-		-
Allstate Protection		(0.1)		(0.2)		(0.9)		(1.4)		(0.9)		(0.6)		(0.2)		(0.7)
Discontinued Lines and Coverages		-		-		-		1.9		0.1		-		0.1		-
Property-Liability		(0.1)		(0.2)		(0.9)		0.5		(0.8)		(0.6)		(0.1)		(0.7)
Allstate brand (2)		(0.1)		(0.2)		(0.6)		(1.2)		(0.8)		(0.5)		(0.1)		(0.7)
Encompass brand (2)		0.1		-		(0.3)		(0.2)		(0.1)		(0.1)		-		-
Esurance brand		(0.1)		-		-		-		-		-		(0.1)		-
Allstate Protection		(0.1)		(0.2)		(0.9)		(1.4)		(0.9)		(0.6)		(0.2)		(0.7)

(1)	Favorable reserve reestimates are shown in parentheses.
(2)	Unfavorable (favorable) reserve reestimates included in catastrophe losses for Allstate brand, Encompass brand and Allstate Protection totaled $35 million, $1 million and $36 million and ($15) million, ($3) million and ($18) million, respectively, in the three months ended June 30, 2014 and 2013, respectively. Unfavorable (favorable) reserve reestimates included in catastrophe losses for Allstate brand, Encompass brand and Allstate Protection totaled $38 million, $0 million and $38 million and ($46) million, ($4) million and ($50) million, respectively, in the six months ended June 30, 2014 and 2013, respectively.
(3)	Calculated using Property-Liability premiums earned for the respective period.

27

THE ALLSTATE CORPORATION

ASBESTOS AND ENVIRONMENTAL RESERVES

($ in millions)

		Three months ended				Twelve months ended December 31,
		June 30,		March 31,
		2014		2014		2013		2012		2011		2010		2009
(net of reinsurance)
Asbestos claims
Beginning reserves	$	993	$	1,017	$	1,026	$	1,078	$	1,100	$	1,180	$	1,228
Incurred claims and claims expense		-		-		74		26		26		5		(8)
Claims and claims expense paid		(17)		(24)		(83)		(78)		(48)		(85)		(40)
Ending reserves	$	976	$	993	$	1,017	$	1,026	$	1,078	$	1,100	$	1,180
Claims and claims expense paid as a percent of ending reserves		1.7%		2.4%		8.2%		7.6%		4.5%		7.7%		3.4%
Environmental claims
Beginning reserves	$	204	$	208	$	193	$	185	$	201	$	198	$	195
Incurred claims and claims expense		-		-		30		22		-		18		13
Claims and claims expense paid		(3)		(4)		(15)		(14)		(16)		(15)		(10)
Ending reserves	$	201	$	204	$	208	$	193	$	185	$	201	$	198
Claims and claims expense paid as a percent of ending reserves		1.5%		2.0%		7.2%		7.3%		8.6%		7.5%		5.1%

28

THE ALLSTATE CORPORATION

ALLSTATE PERSONAL LINES PROFITABILITY MEASURES (1)

($ in millions, except ratios and policies in force)

	Three months ended													Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written
Auto	$	4,375	$	4,292	$	4,147	$	4,280	$	4,170	$	4,155	$	8,667	$	8,325
Homeowners		1,765		1,342		1,549		1,779		1,693		1,268		3,107		2,961
Landlord		137		126		138		143		135		124		263		259
Renter		72		59		58		69		59		53		131		112
Condominium		61		48		52		58		55		45		109		100
Other		146		118		120		147		157		126		264		283
Other personal lines		416		351		368		417		406		348		767		754
Total		6,556		5,985		6,064		6,476		6,269		5,771		12,541		12,040
Net premiums earned
Auto	$	4,297	$	4,209	$	4,186	$	4,165	$	4,133	$	4,094	$	8,506	$	8,227
Homeowners		1,594		1,580		1,574		1,568		1,525		1,516		3,174		3,041
Other personal lines		387		385		384		384		380		379		772		759
Total		6,278		6,174		6,144		6,117		6,038		5,989		12,452		12,027
Incurred losses
Auto	$	3,011	$	2,858	$	2,876	$	2,857	$	2,843	$	2,774	$	5,869	$	5,617
Homeowners		1,212		994		656		645		1,084		914		2,206		1,998
Other personal lines		226		279		187		221		239		247		505		486
Total		4,449		4,131		3,719		3,723		4,166		3,935		8,580		8,101
Expenses
Auto	$	1,089	$	1,075	$	1,114	$	1,068	$	1,069	$	1,068	$	2,164	$	2,137
Homeowners		359		385		393		379		368		376		744		744
Other personal lines		105		108		115		108		113		115		213		228
Total		1,553		1,568		1,622		1,555		1,550		1,559		3,121		3,109
Underwriting income (loss)
Auto	$	197	$	276	$	196	$	240	$	221	$	252	$	473	$	473
Homeowners		23		201		525		544		73		226		224		299
Other personal lines		56		(2)		82		55		28		17		54		45
Total		276		475		803		839		322		495		751		817
Loss ratio		70.9		66.9		60.5		60.9		69.0		65.7		68.9		67.4
Expense ratio		24.7		25.4		26.4		25.4		25.7		26.0		25.1		25.8
Combined ratio		95.6		92.3		86.9		86.3		94.7		91.7		94.0		93.2
Effect of catastrophe losses on combined ratio		13.4		6.5		1.9		1.8		10.1		5.8		10.0		7.9
Effect of prior year reserve reestimates on combined ratio		(0.1)		(0.2)		(0.7)		(1.2)		(0.7)		(0.4)		(0.1)		(0.5)
Combined ratio excluding the effect of catastrophes and
prior year reserve reestimates		82.8		86.0		85.7		85.2		85.1		85.9		84.4		85.5
Effect of catastrophe losses		13.4		6.5		1.9		1.8		10.1		5.8		10.0		7.9
Effect of prior year non-catastrophe reserve reestimates		(0.6)		(0.2)		(0.7)		(0.7)		(0.5)		-		(0.4)		(0.2)
Combined ratio		95.6		92.3		86.9		86.3		94.7		91.7		94.0		93.2
Policies in Force (in thousands)
Auto		19,605		19,413		19,362		19,247		19,155		19,020		19,605		19,155
Homeowners		6,069		6,063		6,077		6,077		6,097		6,136		6,069		6,097
Other personal lines		4,052		4,032		4,024		4,014		4,015		4,024		4,052		4,015
Excess and surplus		25		23		22		20		18		15		25		18
Total		29,751		29,531		29,485		29,358		29,285		29,195		29,751		29,285

(1)Allstate Personal Lines comprise Allstate brand auto, homeowners and other personal lines. Allstate Protection segment comprises Allstate Personal Lines; Business to Business-Encompass, Commercial and Other Business Lines; Esurance; and Answer Financial.

29

THE ALLSTATE CORPORATION

BUSINESS TO BUSINESS - ENCOMPASS, COMMERCIAL AND OTHER BUSINESS LINES PROFITABILITY MEASURES

($ in millions, except ratios and policies in force)

		Three months ended												Six months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		June 30,		June 30,
		2014		2014		2013		2013		2013		2013		2014		2013
Net premiums written
Auto	$	176	$	151	$	155	$	172	$	167	$	147	$	327	$	314
Homeowners		136		110		115		129		120		97		246		217
Other personal lines		29		25		25		28		28		23		54		51
Subtotal - Encompass		341		286		295		329		315		267		627		582
Commercial lines		130		116		119		114		121		112		246		233
Allstate Roadside Services		94		97		88		91		88		82		191		170
Allstate Dealer Services		86		79		69		70		63		51		165		114
Other business lines		180		176		157		161		151		133		356		284
Total		651		578		571		604		587		512		1,229		1,099
Net premiums earned
Auto	$	162	$	161	$	155	$	158	$	158	$	155	$	323	$	313
Homeowners		120		117		114		111		105		100		237		205
Other personal lines		26		26		25		26		24		25		52		49
Subtotal - Encompass		308		304		294		295		287		280		612		567
Commercial lines		121		110		115		114		113		114		231		227
Other business lines		131		133		126		124		115		106		264		221
Total		560		547		535		533		515		500		1,107		1,015
Incurred losses
Auto	$	134	$	114	$	114	$	112	$	117	$	117	$	248	$	234
Homeowners		118		86		48		63		69		62		204		131
Other personal lines		21		21		-		13		21		20		42		41
Subtotal - Encompass		273		221		162		188		207		199		494		406
Commercial lines		78		81		77		70		69		61		159		130
Other business lines		64		63		58		60		49		47		127		96
Total		415		365		297		318		325		307		780		632
Expenses
Auto	$	50	$	48	$	49	$	47	$	48	$	47	$	98	$	95
Homeowners		37		35		35		34		33		32		72		65
Other personal lines		7		8		7		7		6		8		15		14
Subtotal - Encompass		94		91		91		88		87		87		185		174
Commercial lines		35		34		37		34		33		34		69		67
Other business lines		52		62		58		42		53		53		114		106
Total		181		187		186		164		173		174		368		347
Underwriting income (loss)
Auto	$	(22)	$	(1)	$	(8)	$	(1)	$	(7)	$	(9)	$	(23)	$	(16)
Homeowners		(35)		(4)		31		14		3		6		(39)		9
Other personal lines		(2)		(3)		18		6		(3)		(3)		(5)		(6)
Subtotal - Encompass		(59)		(8)		41		19		(7)		(6)		(67)		(13)
Commercial lines		8		(5)		1		10		11		19		3		30
Other business lines		15		8		10		22		13		6		23		19
Total		(36)		(5)		52		51		17		19		(41)		36
Loss ratio		74.1		66.7		55.5		59.7		63.1		61.4		70.5		62.3
Expense ratio		32.3		34.2		34.8		30.7		33.6		34.8		33.2		34.2
Combined ratio		106.4		100.9		90.3		90.4		96.7		96.2		103.7		96.5
Effect of catastrophe losses on combined ratio		14.8		7.9		(0.2)		3.4		6.6		2.2		11.4		4.4
Effect of prior year reserve reestimates on combined ratio		0.3		(0.6)		(3.9)		(5.3)		(3.7)		(3.0)		(0.1)		(3.3)
Effect of amortization of purchased intangible assets (1)		0.2		0.2		0.4		-		-		-		0.2		-
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates, and the amortization of purchased intangible assets (“underlying”)		91.3		93.4		93.1		92.1		92.2		96.2		92.3		94.2
Effect of catastrophe losses		14.8		7.9		(0.2)		3.4		6.6		2.2		11.4		4.4
Effect of prior year non-catastrophe reserve reestimates		0.1		(0.6)		(3.0)		(5.1)		(2.1)		(2.2)		(0.2)		(2.1)
Effect of amortization of purchased intangible assets		0.2		0.2		0.4		-		-		-		0.2		-
Combined ratio		106.4		100.9		90.3		90.4		96.7		96.2		103.7		96.5
Policies in Force (in thousands)
Auto		788		778		774		767		752		737		788		752
Homeowners		364		359		356		350		341		333		364		341
Other personal lines		124		124		125		124		124		121		124		124
Subtotal - Encompass		1,276		1,261		1,255		1,241		1,217		1,191		1,276		1,217
Commercial lines		313		305		301		295		291		286		313		291
Other business lines		972		991		989		996		997		1,001		972		997
Total		2,561		2,557		2,545		2,532		2,505		2,478		2,561		2,505

(1) Relates to the acquisition of Northeast Agency in 2013.

30

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL RESULTS (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,
		2014		2014		2013		2013		2013		2013		2014		2013
Premiums	$	312	$	327	$	332	$	306	$	307	$	303	$	639	$	610
Contract charges		206		280		278		278		272		276		486		548
Net investment income		538		640		637		633		633		635		1,178		1,268
Periodic settlements and accruals on non-hedge derivative instruments		(1)		-		-		2		5		10		(1)		15
Contract benefits		(413)		(488)		(490)		(498)		(471)		(458)		(901)		(929)
Interest credited to contractholder funds		(208)		(291)		(301)		(302)		(315)		(336)		(499)		(651)
Amortization of deferred policy acquisition costs		(65)		(74)		(80)		(109)		(65)		(76)		(139)		(141)
Operating costs and expenses		(112)		(118)		(145)		(132)		(140)		(148)		(230)		(288)
Restructuring and related charges		(1)		(2)		-		(4)		(1)		(2)		(3)		(3)
Income tax expense on operations		(91)		(85)		(71)		(47)		(68)		(60)		(176)		(128)
Operating income		165		189		160		127		157		144		354		301
Realized capital gains and losses, after-tax		(6)		-		9		(12)		37		12		(6)		49
Valuation changes on embedded derivatives that are not hedged, after-tax		(3)		(11)		(3)		(10)		3		(6)		(14)		(3)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		-		-		(3)		1		(4)		1		-		(3)
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		-		-		7		-		-		-		-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		-		-		(1)		(4)		(6)		1		(10)
(Loss) gain on disposition of operations, after-tax		(12)		(16)		(44)		(472)		1		1		(28)		2
Net income (loss) available to common shareholders	$	145	$	162	$	119	$	(360)	$	190	$	146	$	307	$	336

(1)   Refer to pages 32 and 33 for further details related to the impact of LBL on comparison of Allstate Financial results.

31

THE ALLSTATE CORPORATION

 IMPACT OF LBL ON COMPARISON OF ALLSTATE FINANCIAL RESULTS (1)

($ in millions)

		Three months ended										Six months ended
		June 30,		June 30,				Q2 2013		Change		June 30,		June 30,				Q2 2013		Change
		2014		2013		Change		LBL results		excl.LBL		2014		2013		Change		LBL results		excl.LBL
Premiums and contract charges	$	518	$	579	$	(61)	$	82	$	21	$	1,125	$	1,158	$	(33)	$	82	$	49
Net investment income		538		633		(95)		136		41		1,178		1,268		(90)		136		46
Periodic settlements and accruals on non-hedge derivative instruments		(1)		5		(6)		-		(6)		(1)		15		(16)		-		(16)
Contract benefits		(413)		(471)		58		(62)		(4)		(901)		(929)		28		(62)		(34)
Interest credited to contractholder funds		(208)		(315)		107		(85)		22		(499)		(651)		152		(85)		67
Amortization of deferred policy acquisition costs		(65)		(65)		-		(11)		(11)		(139)		(141)		2		(11)		(9)
Operating costs and expenses		(112)		(140)		28		(13)		15		(230)		(288)		58		(13)		45
Restructuring and related charges		(1)		(1)		-		-		-		(3)		(3)		-		-		-
Income tax expense on operations		(91)		(68)		(23)		(16)		(39)		(176)		(128)		(48)		(16)		(64)
Operating income		165		157		8		31		39		354		301		53		31		84
Realized capital gains and losses, after-tax		(6)		37		(43)		-		(43)		(6)		49		(55)		-		(55)
Valuation changes on embedded derivatives that are not hedged, after-tax		(3)		3		(6)		(2)		(8)		(14)		(3)		(11)		(2)		(13)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		-		(4)		4		(1)		3		-		(3)		3		(1)		2
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		-		-		-		-		-		-		-		-		-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		(4)		5		-		5		1		(10)		11		-		11
(Loss) gain on disposition of operations, after-tax		(12)		1		(13)		-		(13)		(28)		2		(30)		-		(30)
Net income (loss) available to common shareholders	$	145	$	190	$	(45)	$	28	$	(17)	$	307	$	336	$	(29)	$	28	$	(1)

(1) As a result of LBL disposition on April 1, 2014, Allstate Financial results no longer include LBL beginning in the second quarter of 2014. To assist with comparison of Allstate Financial results between periods, estimated results of LBL business for the second quarter of 2013 were excluded in this presentation.

32

THE ALLSTATE CORPORATION

ESTIMATED RESULTS OF DISPOSED LBL BUSINESS

($ in millions)

		Three months ended
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2014		2013		2013		2013		2013
Premiums and contract charges	$	85	$	89	$	83	$	82	$	87
Net investment income (1)		126		126		135		136		141
Contract benefits		(65)		(46)		(65)		(62)		(44)
Interest credited to contractholder funds		(80)		(83)		(80)		(85)		(97)
Amortization of deferred policy acquisition costs		(6)		(17)		22		(11)		(23)
Operating costs and expenses		(8)		(7)		(11)		(13)		(16)
Income tax expense on operations		(18)		(21)		(29)		(16)		(16)
Operating income		34		41		55		31		32
Realized capital gains and losses, after-tax		-		-		-		-		-
Valuation changes of equity-indexed annuity forward starting options, after-tax		(6)		(6)		(8)		(2)		(6)
DAC and DSI amortization relating to non-operating items, after tax		-		(1)		1		(1)		1
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		-		6		-		-
Net income	$	28	$	34	$	54	$	28	$	27
Benefit spread	$	(1)	$	19	$	(4)	$	(4)	$	15
Investment spread		46		43		55		51		44
Surrender charges and contract maintenance
expense fees		21		24		22		24		28

(1)Net investment income included investment expenses of $5 million in each quarter of 2013 and $4 million in first quarter 2014.  These expenses are not expected to be eliminated in connection with the LBL sale.

33

ALLSTATE FINANCIAL

RETURN ON ATTRIBUTED EQUITY

($ in millions)

		Twelve months ended
		June 30,			March 31,		Dec. 31,		Sept. 30,			June 30,			March 31,
		2014			2014		2013		2013			2013			2013
Return on Attributed Equity
Numerator:
Net income available to common shareholders(1)	$	66		$	111	$	95	$	142		$	633		$	575
Denominator:
Beginning attributed equity (2)	$	8,224		$	8,617	$	8,446	$	8,291		$	7,737		$	7,475
Ending attributed equity		7,262			7,812		7,273		7,819			8,224			8,617
Average attributed equity (3)	$	7,743		$	8,215	$	7,860	$	8,055		$	7,981		$	8,046
Return on attributed equity		0.9	%		1.4	%	1.2	%	1.8	%		7.9	%		7.1	%
Operating Income Return on Attributed Equity
Numerator:
Operating income (1)	$	641		$	633	$	588	$	572		$	542		$	523
Denominator:
Beginning attributed equity (2)	$	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
Ending attributed equity		7,262			7,812		7,273		7,819			8,224			8,617
Unrealized net capital gains and losses		1,285			1,280		946		1,076			1,120			1,702
Adjusted ending attributed equity		5,977			6,532		6,327		6,743			7,104			6,915
Average adjusted attributed equity (3)	$	6,541		$	6,724	$	6,548	$	6,684		$	6,801		$	6,659
Operating income return on attributed equity		9.8	%		9.4	%	9.0	%	8.6	%		8.0	%		7.9	%

(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 Allstate Financial Insurance Holdings 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,
		2014		2014		2013		2013		2013		2013		2014		2013
PREMIUMS AND CONTRACT CHARGES - BY PRODUCT
Underwritten Products
Traditional life insurance premiums	$	125	$	127	$	136	$	120	$	119	$	116	$	252	$	235
Accident and health insurance premiums		187		195		181		180		179		180		382		359
Interest-sensitive life insurance contract charges		202		274		273		272		268		273		476		541
		514		596		590		572		566		569		1,110		1,135
Annuities
Immediate annuities with life contingencies premiums		-		5		15		6		9		7		5		16
Other fixed annuity contract charges		4		6		5		6		4		3		10		7
		4		11		20		12		13		10		15		23
Total	$	518	$	607	$	610	$	584	$	579	$	579	$	1,125	$	1,158
PREMIUMS AND CONTRACT CHARGES - BY DISTRIBUTION CHANNEL
Allstate agencies (1)	$	285	$	291	$	294	$	283	$	281	$	276	$	576	$	557
Workplace enrolling agents		203		204		195		195		189		188		407		377
Other (2)		30		112		121		106		109		115		142		224
Total	$	518	$	607	$	610	$	584	$	579	$	579	$	1,125	$	1,158
PREMIUMS AND CONTRACT CHARGES - BY PRODUCT INCLUDED IN LINCOLN BENEFIT LIFE COMPANY SALE (3)
Underwritten Products
Traditional life insurance premiums	$	-	$	6	$	7	$	4	$	6	$	5	$	6	$	11
Accident and health insurance premiums		-		6		7		6		5		6		6		11
Interest-sensitive life insurance contract charges		-		71		73		71		70		74		71		144
		-		83		87		81		81		85		83		166
Annuities
Immediate annuities with life contingencies premiums		-		-		-		-		-		-		-		-
Other fixed annuity contract charges		-		2		2		2		1		2		2		3
		-		2		2		2		1		2		2		3
Total	$	-	$	85	$	89	$	83	$	82	$	87	$	85	$	169
ISSUED LIFE INSURANCE POLICIES BY DISTRIBUTION CHANNEL(4)
Allstate agencies (1)		32,625		31,220		42,286		35,537		34,074		36,421		63,845		70,495
Other		-		-		146		447		618		879		-		1,497
Total		32,625		31,220		42,432		35,984		34,692		37,300		63,845		71,992
ALLSTATE BENEFITS NEW BUSINESS WRITTEN PREMIUMS (5)	$	58	$	52	$	164	$	59	$	64	$	52	$	110	$	116

(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)Amounts are included in section above. On April 1, 2014, the sale of LBL was completed.

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

(5)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,
		2014		2014		2013		2013		2013		2013		2014		2013
Contractholders funds, beginning balance	$	23,989	$	24,304	$	24,476	$	36,357	$	38,807	$	39,319	$	24,304	$	39,319
Contractholders funds classified as held for sale, beginning balance		10,661		10,945		11,283		-		-		-		10,945		-
Total contractholders funds, including those classified as held for sale		34,650		35,249		35,759		36,357		38,807		39,319		35,249		39,319
Deposits
Interest-sensitive life insurance		246		318		334		330		328		386		564		568
Fixed annuities		56		127		276		218		281		287		183		714
Total deposits		302		445		610		548		609		673		747		1,282
Interest credited		212		308		310		321		314		350		520		664
Benefits, withdrawals, maturities and other adjustments
Benefits		(289)		(380)		(349)		(392)		(399)		(395)		(669)		(794)
Surrenders and partial withdrawals		(554)		(712)		(756)		(807)		(845)		(891)		(1,266)		(1,736)
Maturities of and interest payments on institutional products		-		-		-		(1)		(1,797)		(1)		-		(1,798)
Contract charges		(199)		(281)		(282)		(279)		(274)		(277)		(480)		(551)
Net transfers from separate accounts		1		3		4		2		5		1		4		6
Other adjustments		11		18		(47)		10		(63)		28		29		(35)
Total benefits, withdrawals, maturities and other adjustments		(1,030)		(1,352)		(1,430)		(1,467)		(3,373)		(1,535)		(2,382)		(4,908)
Contractholder funds sold in LBL disposition		(10,662)		-		-		-		-		-		(10,662)		-
Contractholder funds classified as held for sale, ending balance		-		(10,661)		(10,945)		(11,283)		-		-		-		-
Contractholder funds, ending balance	$	23,472	$	23,989	$	24,304	$	24,476	$	36,357	$	38,807	$	23,472	$	36,357

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,
		2014		2014		2013		2013		2013		2013		2014		2013
Benefit spread
Premiums	$	312	$	327	$	332	$	306	$	307	$	303	$	639	$	610
Cost of insurance contract charges (1)		135		187		184		182		179		180		322		359
Contract benefits excluding the implied interest on immediate annuities with life contingencies (2)		(283)		(358)		(359)		(365)		(341)		(325)		(641)		(666)
Total benefit spread		164		156		157		123		145		158		320		303
Investment spread
Net investment income		538		640		637		633		633		635		1,178		1,268
Implied interest on immediate annuities with life contingencies (2)		(130)		(130)		(131)		(133)		(130)		(133)		(260)		(263)
Interest credited to contractholder funds		(212)		(307)		(305)		(317)		(311)		(345)		(519)		(656)
Total investment spread		196		203		201		183		192		157		399		349
Surrender charges and contract maintenance expense fees (1)		71		93		94		96		93		96		164		189
Realized capital gains and losses		(10)		1		14		(16)		57		19		(9)		76
Amortization of deferred policy acquisition costs		(66)		(74)		(85)		(97)		(71)		(75)		(140)		(146)
Operating costs and expenses		(112)		(118)		(145)		(132)		(140)		(148)		(230)		(288)
Restructuring and related charges		(1)		(2)		-		(4)		(1)		(2)		(3)		(3)
(Loss) gain on disposition of operations		(8)		(59)		(44)		(646)		1		2		(67)		3
Income tax (expense) benefit		(89)		(38)		(73)		133		(86)		(61)		(127)		(147)
Net income (loss) available to common shareholders	$	145	$	162	$	119	$	(360)	$	190	$	146	$	307	$	336
Benefit spread by product group
Life insurance	$	86	$	74	$	101	$	60	$	75	$	86	$	160	$	161
Accident and health insurance		97		102		78		85		86		89		199		175
Annuities		(19)		(20)		(22)		(22)		(16)		(17)		(39)		(33)
Total benefit spread	$	164	$	156	$	157	$	123	$	145	$	158	$	320	$	303
Investment spread by product group
Annuities and institutional products	$	98	$	110	$	95	$	100	$	88	$	59	$	208	$	147
Life insurance		26		30		28		25		25		27		56		52
Accident and health insurance		4		7		6		6		7		6		11		13
Net investment income on investments supporting capital		72		73		75		69		67		74		145		141
Investment spread before valuation changes on embedded derivatives that are not hedged		200		220		204		200		187		166		420		353
Valuation changes on derivatives embedded in equity-indexed annuity contracts that are not hedged		(4)		(17)		(3)		(17)		5		(9)		(21)		(4)
Total investment spread	$	196	$	203	$	201	$	183	$	192	$	157	$	399	$	349
(1)Reconciliation of contract charges
Cost of insurance contract charges	$	135	$	187	$	184	$	182	$	179	$	180	$	322	$	359
Surrender charges and contract maintenance expense fees		71		93		94		96		93		96		164		189
Total contract charges	$	206	$	280	$	278	$	278	$	272	$	276	$	486	$	548
(2)Reconciliation of contract benefits
Contract benefits excluding the implied interest on immediate annuities with life contingencies	$	(283)	$	(358)	$	(359)	$	(365)	$	(341)	$	(325)	$	(641)	$	(666)
Implied interest on immediate annuities with life contingencies		(130)		(130)		(131)		(133)		(130)		(133)		(260)		(263)
Total contract benefits	$	(413)	$	(488)	$	(490)	$	(498)	$	(471)	$	(458)	$	(901)	$	(929)

37

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS

	Three months ended June 30, 2014 (1)						Three months ended June 30, 2013
	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	5.3	%	4.0	%	1.3	%	5.1	%	3.8	%	1.3	%
Deferred fixed annuities and institutional products	4.4		2.8		1.6		4.7		2.9		1.8
Immediate fixed annuities with and without life contingencies	8.0		5.9		2.1		6.8		6.0		0.8
Investments supporting capital, traditional life and other products	4.8		n/a		n/a		3.8		n/a		n/a

	Six months ended June 30, 2014(1)						Six months ended June 30, 2013
	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	5.3	%	3.9	%	1.4	%	5.2	%	3.9	%	1.3	%
Deferred fixed annuities and institutional products	4.4		2.9		1.5		4.6		3.0		1.6
Immediate fixed annuities with and without life contingencies	7.8		6.0		1.8		6.5		6.0		0.5
Investments supporting capital, traditional life and other products	4.4		n/a		n/a		4.0		n/a		n/a

(1) For purposes of these calculations, investments, reserves and contractholder funds classified as held for sale were included for periods prior to April 1, 2014.

38

THE ALLSTATE CORPORATION

ALLSTATE FINANCIAL SUPPLEMENTAL PRODUCT INFORMATION

($ in millions)

		As of June 30, 2014				Twelve months ended June 30, 2014	Operating income return on attributed equity (%)
				Attributed equity			Twelve months ended
		Reserves and		excluding unrealized			June		March		Dec.		Sept.		June		March
		Contractholder funds		capital gains/losses (3)(4)		Operating income (5)	2014		2014		2013		2013		2013		2013
Underwritten products
Life insurance	$	10,346	$	2,712	$	250	8.9	%	9.0	%	9.4	%	8.4	%	8.6	%	8.9	%
Accident and health insurance		827		683		95	14.5		14.7		14.8		15.6		15.4		13.5
Subtotal		11,173		3,395		345	9.9		10.1		10.4		9.7		9.8		9.8
Annuities and institutional products:
Immediate Annuities:
Sub-standard structured settlements and group pension terminations (1)		5,114		892		20	2.0		0.7		(0.5	)	(1.4	)	(1.8	)	(1.9	)
Standard structured settlements and SPIA (2)		7,760		460		84	16.8		13.2		9.5		7.8		5.5		5.1
Subtotal		12,874		1,352		104	7.1		5.0		3.0		1.7		0.7		0.4
Deferred Annuities		12,023		1,224		189	12.0		12.3		12.0		12.5		11.3		10.9
Institutional products		90		6		3
Subtotal		24,987		2,582		296	9.6		8.7		7.6		7.4		6.2		6.0
Total Allstate Financial	$	36,160	$	5,977	$	641	9.8		9.4		9.0		8.6		8.0		7.9

		Six months ended June 30, 2014
		Life		Accident and		Annuities and		Allstate
		insurance		health insurance		institutional products		Financial
Operating income	$	145	$	54	$	155	$	354
Realized capital gains and losses, after-tax		2		-		(8)		(6)
Valuation changes on embedded derivatives that are not hedged, after-tax		-		-		(14)		(14)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(3)		-		3		-
DAC and DSI unlocking relating to realized capital gains and losses, after-tax		-		-		-		-
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		-		-		1
(Loss) gain on disposition of operations, after-tax		(15)		-		(13)		(28)
Net income available to common shareholders	$	130	$	54	$	123	$	307

(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 Allstate Financial Insurance Holdings Corporation, excluding unrealized capital gains and losses.

(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.

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,
	2014	2014	2013	2013	2013	2013
ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE BY PRODUCT
Underwritten products
Life insurance	2,436	2,588	2,567	2,572	2,574	2,572
Accident and health insurance	2,577	2,593	2,342	2,322	2,322	2,338
	5,013	5,181	4,909	4,894	4,896	4,910
Annuities
Deferred annuities	205	337	346	353	362	373
Immediate annuities	110	111	112	112	113	114
	315	448	458	465	475	487
Total	5,328	5,629	5,367	5,359	5,371	5,397
ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE BY SOURCE OF BUSINESS
Allstate Agencies (2)	1,895	1,938	1,939	1,938	1,936	1,930
Allstate Benefits	3,010	3,040	2,762	2,741	2,741	2,757
Other (3)	423	651	666	680	694	710
Total	5,328	5,629	5,367	5,359	5,371	5,397
INSURANCE POLICIES AND ANNUITIES IN FORCE INCLUDED IN LINCOLN BENEFIT LIFE COMPANY SALE
Life insurance	-	142	145	148	150	152
Deferred annuities	-	124	128	132	138	144
Total	-	266	273	280	288	296

(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. 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.

40

THE ALLSTATE CORPORATION

ALLSTATE LIFE AND RETIREMENT AND ALLSTATE BENEFITS RESULTS AND PRODUCT INFORMATION

($ in millions)

		For the six months ended June 30, 2014						For the six months ended June 30, 2013
						Allstate						Allstate
		Allstate Life and		Allstate		Financial		Allstate Life and		Allstate		Financial
		Retirement		Benefits		Segment		Retirement		Benefits		Segment
Premiums	$	248	$	391	$	639	$	248	$	362	$	610
Contract charges		437		49		486		502		46		548
Net investment income		1,142		36		1,178		1,233		35		1,268
Periodic settlements and accruals on non-hedge derivative instruments		(1)		-		(1)		15		-		15
Contract benefits		(693)		(208)		(901)		(731)		(198)		(929)
Interest credited to contractholder funds		(481)		(18)		(499)		(634)		(17)		(651)
Amortization of deferred policy acquisition costs		(79)		(60)		(139)		(93)		(48)		(141)
Operating costs and expenses		(129)		(101)		(230)		(192)		(96)		(288)
Restructuring and related charges		(3)		-		(3)		(2)		(1)		(3)
Income tax expense on operations		(145)		(31)		(176)		(99)		(29)		(128)
Operating income		296		58		354		247		54		301
Realized capital gains and losses, after-tax		(6)		-		(6)		50		(1)		49
Valuation changes on embedded derivatives that are not hedged, after-tax		(14)		-		(14)		(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		-		-		-		(3)		-		(3)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		-		1		(10)		-		(10)
(Loss) gain on disposition of operations, after-tax		(28)		-		(28)		2		-		2
Net income	$	249	$	58	$	307	$	283	$	53	$	336
Premiums and Contract Charges - by Product
Underwritten Product
Traditional life insurance premiums	$	237	$	15	$	252	$	220	$	15	$	235
Accident and health insurance premiums		6		376		382		12		347		359
Interest-sensitive life insurance contract charges		427		49		476		495		46		541
		670		440		1,110		727		408		1,135
Annuities
Immediate annuities with life contingencies premiums		5		-		5		16		-		16
Other fixed annuity contract charges		10		-		10		7		-		7
		15		-		15		23		-		23
Total life and annuity premiums and contract charges	$	685	$	440	$	1,125	$	750	$	408	$	1,158
Benefit Spread by Product Group
Life Insurance	$	153	$	7	$	160	$	152	$	9	$	161
Accident and health insurance		(4)		203		199		(7)		182		175
Annuities		(39)		-		(39)		(33)		-		(33)
Total benefit spread	$	110	$	210	$	320	$	112	$	191	$	303
Investment Spread by Product Group
Annuities and institutional products	$	208	$	-	$	208	$	147	$	-	$	147
Life insurance		51		5		56		46		6		52
Accident and health insurance		6		5		11		7		6		13
Net investment income on investments supporting capital		137		8		145		135		6		141
Investment spread before valuation changes on embedded derivatives that are not hedged		402		18		420		335		18		353
Valuation changes on derivatives embedded in equity-indexed annuity contracts that are not hedged		(21)		-		(21)		(4)		-		(4)
Total investment spread	$	381	$	18	$	399	$	331	$	18	$	349

41

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,
		2014		2014		2013		2013		2013		2013		2014		2013
Net investment income	$	9	$	7	$	7	$	8	$	8	$	7	$	16	$	15
Operating costs and expenses		(10)		(8)		(171)		(76)		(8)		3		(18)		(5)
Interest expense		(84)		(87)		(87)		(83)		(98)		(98)		(171)		(196)
Income tax benefit on operations		32		32		90		58		37		35		64		72
Preferred stock dividends		(31)		(13)		(11)		(6)		-		-		(44)		-
Operating loss		(84)		(69)		(172)		(99)		(61)		(53)		(153)		(114)
Realized capital gains and losses, after-tax		(1)		1		(1)		1		-		-		-		-
Loss on extinguishment of debt, after-tax		-		-		(1)		(6)		(312)		-		-		(312)
Postretirement benefits curtailment gain, after-tax		-		-		-		118		-		-		-		-
Net (loss) income available to common shareholders	$	(85)	$	(68)	$	(174)	$	14	$	(373)	$	(53)	$	(153)	$	(426)

42

THE ALLSTATE CORPORATION

INVESTMENTS

($ in millions)

	PROPERTY-LIABILITY										ALLSTATE FINANCIAL(1)
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		June 30,			March 31,		Dec. 31,		Sept. 30,		June 30,
		2014		2014		2013		2013		2013		2014			2014		2013		2013		2013
Fixed income securities, at fair value:
Tax-exempt	$	4,353	$	4,618	$	4,711	$	5,484	$	5,754	$	2		$	2	$	2	$	1	$	2
Taxable		26,091		24,223		24,867		22,920		22,359		29,898			30,057		29,646		30,216		41,347
Equity securities, at fair value		4,072		4,341		4,396		4,156		3,932		1,322			956		701		656		573
Mortgage loans		373		403		429		431		479		3,801			4,069		4,292		4,386		5,934
Limited partnership interests		2,438		2,900		2,898		3,043		2,991		1,866			2,121		2,064		2,044		1,946
Short-term, at fair value		812		894		1,002		1,056		1,182		1,038			870		668		629		821
Other		1,531		1,528		1,335		1,102		813		1,607			1,635		1,732		1,672		1,958
Total	$	39,670	$	38,907	$	39,638	$	38,192	$	37,510	$	39,534		$	39,710	$	39,105	$	39,604	$	52,581
Fixed income securities, amortized cost:
Tax-exempt	$	4,238	$	4,521	$	4,625	$	5,367	$	5,617	$	2		$	2	$	2	$	1	$	2
Taxable		25,484		23,696		24,424		22,464		21,930		27,464			28,130		28,295		28,648		39,371
Ratio of fair value to amortized cost		102.4%		102.2%		101.8%		102.1%		102.1%		108.9%			106.8%		104.8%		105.5%		105.0%
Equity securities, at cost	$	3,492	$	3,737	$	3,866	$	3,769	$	3,702	$	1,166		$	838	$	607	$	601	$	535
Short-term, amortized cost		812		894		1,002		1,056		1,182		1,038			870		668		629		821
	CORPORATE AND OTHER										CONSOLIDATED
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		June 30,			March 31,		Dec. 31,		Sept 30,		June 30,
		2014		2014		2013		2013		2013		2014			2014		2013		2013		2013
Fixed income securities, at fair value:
Tax-exempt	$	565	$	558	$	570	$	576	$	578	$	4,920		$	5,178	$	5,283	$	6,061	$	6,334
Taxable		1,725		1,703		1,114		1,098		999		57,714			55,983		55,627		54,234		64,705
Equity securities, at fair value		-		-		-		-		-		5,394			5,297		5,097		4,812		4,505
Mortgage loans		-		-		-		-		-		4,174			4,472		4,721		4,817		6,413
Limited partnership interests		5		3		5		4		4		4,309	(2)		5,024		4,967		5,091		4,941
Short-term, at fair value		1,064		809		723		1,009		643		2,914			2,573		2,393		2,694		2,646
Other		-		-		-		-		-		3,138			3,163		3,067		2,774		2,771
Total	$	3,359	$	3,073	$	2,412	$	2,687	$	2,224	$	82,563		$	81,690	$	81,155	$	80,483	$	92,315
Fixed income securities, amortized cost:
Tax-exempt	$	541	$	538	$	552	$	556	$	558	$	4,781		$	5,061	$	5,179	$	5,924	$	6,177
Taxable		1,718		1,700		1,110		1,093		997		54,666			53,526		53,829		52,205		62,298
Ratio of fair value to amortized cost		101.4%		101.0%		101.3%		101.5%		101.4%		105.4%			104.4%		103.2%		103.7%		103.7%
Equity securities, cost	$	-	$	-	$	-	$	-	$	-	$	4,658		$	4,575	$	4,473	$	4,370	$	4,237
Short-term, amortized cost		1,064		809		723		1,009		643		2,914			2,573		2,393		2,694		2,646

(1)Excludes investments classified as held for sale that totaled $11.5 billion, $12.0 billion and $12.2 billion as of March 31, 2014, December 31, 2013 and September 30, 2013, respectively.

(2)Tax credit funds, which totaled $592 million as of June 30, 2014, were reclassified from limited partnership interests to other assets as of June 30, 2014.

43

THE ALLSTATE CORPORATION

INVESTMENT PORTFOLIO DETAILS

($ in millions)

		Financial statement classification as of June 30, 2014
								Limited
		Fixed income		Equity		Mortgage		partnership		Short-
		securities		securities		loans		interests		term		Other (1)		Total
Infrastructure and real assets
Infrastructure and real assets - debt	$	10,644	$	-	$	-	$	-	$	-	$	-	$	10,644
Infrastructure and real assets - equity		-		741		-		520		-		-		1,261
Infrastructure and real assets - other		-		-		-		-		-		169		169
		10,644		741		-		520		-		169		12,074
Real estate
Real estate - debt		2,108		-		4,174		-		-		-		6,282
Real estate - equity		-		42		-		1,517		-		112		1,671
		2,108		42		4,174		1,517		-		112		7,953
Consumer goods (cyclical and non-cyclical)		9,764		936		-		-		-		-		10,700
Banking & financial services
Banking		3,468		219		-		-		-		-		3,687
Financial services		3,056		313		-		-		-		-		3,369
Credit card and student loan ABS		866		-		-		-		-		-		866
Consumer auto ABS		967		-		-		-		-		-		967
		8,357		532		-		-		-		-		8,889
Municipal - General obligation, revenue and taxable		8,561		-		-		-		-		-		8,561
Government & agencies
U.S. government and agencies		4,853		-		-		-		662		-		5,515
Foreign government		1,394		-		-		-		-		-		1,394
		6,247		-		-		-		662		-		6,909
Technology and communications
Communications		3,129		272		-		-		-		-		3,401
Technology		2,518		474		-		-		-		-		2,992
		5,647		746		-		-		-		-		6,393
Capital goods		4,189		471		-		-		-		-		4,660
Basic & other industries
Basic industry		2,323		284		-		-		-		-		2,607
Other industries		768		-		-		-		-		-		768
		3,091		284		-		-		-		-		3,375
Transportation		1,634		126		-		-		-		-		1,760
ABS other		2,110		-		-		-		-		-		2,110
Private equity		-		-		-		2,111		-		-		2,111
Emerging markets
Fixed income funds		-		275		-		-		-		-		275
Foreign government		282		-		-		-		-		-		282
Equity index based funds		-		120		-		-		-		-		120
		282		395		-		-		-		-		677
Other equity market index based funds		-		1,121		-		-		-		-		1,121
Other funds		-		-		-		161		-		-		161
Other		-		-		-		-		2,252		2,857		5,109
Total investments	$	62,634	$	5,394	$	4,174	$	4,309	$	2,914	$	3,138	$	82,563

(1) Other includes derivatives, policy loans, agent loans and bank loans.

44

THE ALLSTATE CORPORATION

LIMITED PARTNERSHIP INVESTMENTS

($ in millions)

		As of or for the three months ended
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
		2014		2014		2013		2013		2013		2013
Investment position
Accounting basis
Cost method	$	1,157	$	1,346	$	1,443	$	1,435	$	1,441	$	1,425
Equity method (1)		3,152		3,678		3,524		3,656		3,500		3,506
Total	$	4,309	$	5,024	$	4,967	$	5,091	$	4,941	$	4,931
Cost method-fair value (2)	$	1,577	$	1,764	$	1,835	$	1,806	$	1,795	$	1,748
Underlying investment
Private equity / debt funds	$	2,631	$	2,674	$	2,562	$	2,485	$	2,457	$	2,423
Real estate funds		1,517		1,577		1,687		1,666		1,658		1,635
Other (3)		161		773		718		940		826		873
Total	$	4,309	$	5,024	$	4,967	$	5,091	$	4,941	$	4,931
Segment
Property-Liability	$	2,438	$	2,900	$	2,898	$	3,043	$	2,991	$	2,994
Allstate Financial		1,866		2,121		2,064		2,044		1,946		1,933
Corporate and Other		5		3		5		4		4		4
Total	$	4,309	$	5,024	$	4,967	$	5,091	$	4,941	$	4,931
Total Income
Accounting basis
Cost method	$	66	$	50	$	80	$	48	$	45	$	26
Equity method		129		92		122		58		81		81
Total	$	195	$	142	$	202	$	106	$	126	$	107
Underlying investment
Private equity / debt funds	$	123	$	106	$	140	$	68	$	58	$	68
Real estate funds		55		38		61		49		77		34
Other		17		(2)		1		(11)		(9)		5
Total	$	195	$	142	$	202	$	106	$	126	$	107
Segment
Property-Liability	$	102	$	75	$	130	$	69	$	89	$	77
Allstate Financial		91		67		71		37		37		30
Corporate and Other		2		-		1		-		-		-
Total	$	195	$	142	$	202	$	106	$	126	$	107

(1)As of June 30, 2014, valuations of EMA limited partnerships include approximately $564 million of cumulative pre-tax appreciation that has been recognized in earnings but has not been distributed to investors.

(2)The fair value of cost method limited partnerships is determined using reported net asset values of the underlying funds.

(3)In periods prior to June 30, 2014, other included tax credit funds.

45

THE ALLSTATE CORPORATION

UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE

($ in millions)

		June 30, 2014					March 31, 2014					December 31, 2013
		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	$	146	$	4,853	103.1	$	132	$	3,806	103.6	$	122	$	2,913	104.4
Municipal		552		8,561	106.9		421		8,716	105.1		277		8,723	103.3
Corporate		2,185		41,467	105.6		1,743		41,159	104.4		1,272		40,603	103.2
Foreign government		107		1,676	106.8		96		1,737	105.9		88		1,824	105.1
Asset-backed securities (“ABS”)		40		3,943	101.0		38		3,497	101.1		27		4,518	100.6
Residential mortgage-backed securities (“RMBS”)		99		1,362	107.8		93		1,438	106.9		71		1,474	105.1
Commercial mortgage-backed securities (“CMBS”)		54		746	107.8		47		783	106.4		41		829	105.2
Redeemable preferred stock		4		26	118.2		4		25	119.0		4		26	118.2
Total fixed income securities		3,187		62,634	105.4		2,574		61,161	104.4		1,902		60,910	103.2
Equity securities		736		5,394	115.8		722		5,297	115.8		624		5,097	114.0
Short-term investments		-		2,914	100.0		-		2,573	100.0		-		2,393	100.0
Derivatives		(19)		103	n/a		(19)		169	n/a		(18)		269	n/a
EMA limited partnership interests (2)		(5)		n/a	n/a		(4)		n/a	n/a		(3)		n/a	n/a
Investments classified as held for sale		-		n/a	n/a		327		n/a	n/a		190		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	3,899				$	3,600				$	2,695
Amounts recognized for:
Insurance reserves (3)		(399)					(134)					-
DAC and DSI (4)		(189)					(245)					(158)
Amounts recognized		(588)					(379)					(158)
Deferred income taxes		(1,161)					(1,130)					(891)
Unrealized net capital gains and losses, after-tax	$	2,150				$	2,091				$	1,646

		September 30, 2013					June 30, 2013					March 31, 2013
		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	$	156	$	2,881	105.7	$	203	$	3,204	106.8	$	297	$	4,257	107.5
Municipal		365		9,611	103.9		496		10,716	104.9		929		11,862	108.5
Corporate		1,412		39,697	103.7		1,647		47,616	103.6		3,300		49,567	107.1
Foreign government		108		1,939	105.9		125		2,224	106.0		200		2,365	109.2
ABS		32		3,421	100.9		9		3,476	100.3		18		3,597	100.5
RMBS		57		1,844	103.2		62		2,485	102.6		65		2,750	102.4
CMBS		31		875	103.7		18		1,291	101.4		36		1,381	102.7
Redeemable preferred stock		5		27	122.7		4		27	117.4		4		27	117.4
Total fixed income securities		2,166		60,295	103.7		2,564		71,039	103.7		4,849		75,806	106.8
Equity securities		442		4,812	110.1		268		4,505	106.3		662		4,439	117.5
Short-term investments		-		2,694	100.0		-		2,646	100.0		-		3,169	100.0
Derivatives		(19)		217	n/a		(12)		200	n/a		(19)		223	n/a
EMA limited partnership interests (2)		(3)		n/a	n/a		-		n/a	n/a		8		n/a	n/a
Investments classified as held for sale		244		n/a	n/a		-		n/a	n/a		-		n/a	n/a
Unrealized net capital gains and losses, pre-tax	$	2,830				$	2,820				$	5,500
Amounts recognized for:
Insurance reserves (3)		-					(76)					(623)
DAC and DSI (4)		(189)					(199)					(404)
Amounts recognized		(189)					(275)					(1,027)
Deferred income taxes		(927)					(894)					(1,568)
Unrealized net capital gains and losses, after-tax	$	1,714				$	1,651				$	2,905

(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.

46

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,
		2014			2014		2013		2013			2013			2013		2014		2013
NET INVESTMENT INCOME
Fixed income securities	$	584		$	705	$	698	$	721		$	740		$	762	$	1,289	$	1,502
Equity securities		35			28		55		30			39			25		63		64
Mortgage loans		71			81		82		99			93			98		152		191
Limited partnership interests		195			142		202		106			126			107		337		233
Short-term		3			1		1		1			1			2		4		3
Other		44			42		41		44			39			37		86		76
Sub-total		932			999		1,079		1,001			1,038			1,031		1,931		2,069
Less: Investment expense		(34)			(40)		(53)		(51)			(54)			(48)		(74)		(102)
Net investment income	$	898		$	959	$	1,026	$	950		$	984		$	983	$	1,857	$	1,967
PRE-TAX YIELDS (1)
Fixed income securities		4.0	%		4.1	%	4.1	%	4.2	%		4.2	%		4.3	%	4.0	%	4.3	%
Equity securities		3.1			2.5		4.9		2.8			3.9			2.8		2.8		3.3
Mortgage loans		6.6			5.4		5.3		6.2			5.8			6.0		6.0		5.9
Limited partnership interests		16.7			11.4		15.9		8.6			10.2			8.7		14.1		9.4
Total portfolio		4.7			4.5		4.8		4.5			4.6			4.5		4.6		4.5
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(6)		$	(16)	$	(11)	$	(18)		$	(33)		$	(10)	$	(22)	$	(43)
Change in intent write-downs		(39)			(65)		(19)		(70)			(27)			(27)		(104)		(54)
Net other-than-temporary impairment losses recognized in earnings		(45)			(81)		(30)		(88)			(60)			(37)		(126)		(97)
Sales		290			147		180		59			408			172		437		580
Valuation and Settlements of derivative instruments		(5)			(12)		(8)		(12)			14			(4)		(17)		10
Total	$	240		$	54	$	142	$	(41)		$	362		$	131	$	294	$	493
TOTAL RETURN ON INVESTMENT PORTFOLIO (2)		2.2	%		2.1	%	1.1	%	1.0	%		(1.5)	%		1.2	%	4.3	%	(0.3)	%
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	78.5		$	78.5	$	90.1	$	89.7		$	90.7		$	91.8	$	78.6	$	91.0

(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. Amounts related to investments classified as held for sale were excluded from the pre-tax yield calculation in 2014 and were included in the pre-tax yield calculation in 2013.

(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. Amounts related to investments classified as held for sale were excluded from the total return calculation in 2014 and were included in the total return calculation in 2013.

(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. Amounts related to investments classified as held for sale were excluded from average investment balances calculation in 2014 and were included in the average investment balances calculation in 2013.

47

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,
		2014			2014		2013		2013			2013			2013		2014		2013
NET INVESTMENT INCOME
Fixed income securities:
Tax-exempt	$	29		$	31	$	35	$	44		$	53		$	61	$	60	$	114
Taxable		183			184		178		175			178			188		367		366
Equity securities		29			23		51		26			36			23		52		59
Mortgage loans		4			5		4		6			5			5		9		10
Limited partnership interests (1)		102			75		130		69			89			77		177		166
Short-term		2			1		1		1			-			1		3		1
Other		19			14		11		11			8			8		33		16
Subtotal		368			333		410		332			369			363		701		732
Less: Investment expense		(17)			(21)		(28)		(23)			(26)			(22)		(38)		(48)
Net investment income	$	351		$	312	$	382	$	309		$	343		$	341	$	663	$	684
Net investment income, after-tax	$	240		$	215	$	273	$	225		$	259		$	241	$	455	$	500
PRE-TAX YIELDS (2)
Fixed income securities:
Tax-exempt		2.7	%		2.7	%	2.8	%	3.2	%		3.6	%		3.7	%	2.7	%	3.6	%
Equivalent yield for tax-exempt		3.9			3.9		4.1		4.7			5.2			5.4		3.9		5.2
Taxable		3.0			3.1		3.0		3.2			3.3			3.5		3.0		3.4
Equity securities		3.2			2.5		5.3		2.8			4.0			2.8		2.8		3.4
Mortgage loans		4.9			4.3		4.1		4.4			4.2			4.3		4.6		4.2
Limited partnership interests		15.3			10.3		17.4		9.3			11.8			10.4		12.9		11.1
Total portfolio		3.9			3.5		4.3		3.6			4.0			4.0		3.7		4.0
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
Fixed income securities:
Tax-exempt	$	8		$	4	$	35	$	14		$	39		$	47	$	12	$	86
Taxable		49			36		44		21			17			43		85		60
Equity securities		225			20		58		(56)			252			28		245		280
Limited partnership interests		(23)			7		(1)		2			(5)			5		(16)		-
Derivatives and other		(9)			(14)		(8)		(7)			2			(11)		(23)		(9)
Total	$	250		$	53	$	128	$	(26)		$	305		$	112	$	303	$	417
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	(6)		$	(12)	$	(6)	$	(8)		$	(17)		$	(8)	$	(18)	$	(25)
Change in intent write-downs		(25)			(60)		(15)		(63)			(26)			(20)		(85)		(46)
Net other-than-temporary impairment
losses recognized in earnings		(31)			(72)		(21)		(71)			(43)			(28)		(103)		(71)
Sales		289			139		157		52			346			151		428		497
Valuation and Settlements of derivative instruments		(8)			(14)		(8)		(7)			2			(11)		(22)		(9)
Total	$	250		$	53	$	128	$	(26)		$	305		$	112	$	303	$	417
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	38.0		$	38.1	$	37.9	$	37.0		$	36.7		$	36.5	$	38.2	$	36.6

(1)As of June 30, 2014, Property-Liability has commitments to invest in additional limited partnership interests totaling $1.26 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 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.

48

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,
		2014			2014		2013		2013			2013			2013		2014		2013
NET INVESTMENT INCOME
Fixed income securities	$	365		$	484	$	480	$	497		$	503		$	506	$	849	$	1,009
Equity securities		6			5		4		4			3			2		11		5
Mortgage loans		67			76		78		93			88			93		143		181
Limited partnership interests (1)		91			67		71		37			37			30		158		67
Short-term		1			-		-		-			-			1		1		1
Other		24			26		28		28			30			28		50		58
Subtotal		554			658		661		659			661			660		1,212		1,321
Less: Investment expense		(16)			(18)		(24)		(26)			(28)			(25)		(34)		(53)
Net investment income	$	538		$	640	$	637	$	633		$	633		$	635	$	1,178	$	1,268
Net investment income, after-tax	$	350		$	416	$	424	$	423		$	422		$	424	$	766	$	846
PRE-TAX YIELDS (2)
Fixed income securities		5.3	%		5.4	%	5.0	%	5.1	%		5.0	%		4.8	%	5.3	%	4.9	%
Equity securities		2.7			2.4		2.8		2.4			3.0			2.6		2.6		2.7
Mortgage loans		6.8			5.5		5.4		6.4			5.9			6.2		6.2		6.0
Limited partnership interests		18.2			12.8		13.8		7.4			7.8			6.1		15.6		6.9
Total portfolio		5.9			5.7		5.3		5.2			5.1			5.0		5.8		5.1
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
Fixed income securities	$	5		$	(4)	$	8	$	(12)		$	23		$	(18)	$	1	$	5
Equity securities		14			2		8		5			31			1		16		32
Mortgage loans		(2)			3		1		(6)			(6)			31		1		25
Limited partnership interests		(28)			(5)		(3)		-			(3)			-		(33)		(3)
Derivatives and other		1			5		-		(3)			12			5		6		17
Total	$	(10)		$	1	$	14	$	(16)		$	57		$	19	$	(9)	$	76
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
Impairment write-downs	$	-		$	(4)	$	(5)	$	(10)		$	(16)		$	(2)	$	(4)	$	(18)
Change in intent write-downs		(14)			(5)		(4)		(7)			(1)			(7)		(19)		(8)
Net other-than-temporary impairment losses recognized in earnings		(14)			(9)		(9)		(17)			(17)			(9)		(23)		(26)
Sales		1			8		23		6			62			21		9		83
Valuation and Settlements of derivative instruments		3			2		-		(5)			12			7		5		19
Total	$	(10)		$	1	$	14	$	(16)		$	57		$	19	$	(9)	$	76
AVERAGE INVESTMENT BALANCES (in billions) (3)	$	37.3		$	37.7	$	49.7	$	50.3		$	51.9		$	53.2	$	37.4	$	52.3

(1)As of June 30, 2014, Allstate Financial has commitments to invest in additional limited partnership interests totaling $1.28 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. Amounts related to investments classified as held for sale were excluded from the pre-tax yield calculation in 2014 and were included in the pre-tax yield calculation in 2013.

(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. Amounts related to investments classified as held for sale were excluded from average investment balances calculation in 2014 and were included in the average investment balances calculation in 2013.

49

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,
		2014			2014			2013			2013			2013			2013			2014			2013
Consolidated investment portfolio
Interest-bearing (1)	$	72,580		$	71,084		$	70,796		$	70,423		$	82,729		$	87,890		$	72,580		$	82,729
Equity/owned (2)		9,983			10,606			10,359			10,060			9,586			9,492			9,983			9,586
Total	$	82,563		$	81,690		$	81,155		$	80,483		$	92,315		$	97,382		$	82,563		$	92,315
Consolidated portfolio total return (3)
Interest-bearing		1.8	%		1.7	%		0.6	%		0.8	%		(1.4)	%		0.8	%		3.5	%		(0.8)	%
Equity/owned		0.4			0.4			0.6			0.3			-			0.4			0.8			0.5
Investment Expenses		-			-			(0.1)			(0.1)			(0.1)			-			-			-
Total		2.2			2.1			1.1			1.0			(1.5)			1.2			4.3			(0.3)
Consolidated portfolio total return (3)
Income		1.1	%		1.1	%		1.1	%		1.0	%		1.0	%		1.0	%		2.1	%		2.0	%
Valuation		1.1			1.0			-			-			(2.5)			0.2			2.2			(2.3)
Total		2.2			2.1			1.1			1.0			(1.5)			1.2			4.3			(0.3)
Consolidated net investment income
Interest-bearing	$	695		$	824		$	819		$	861		$	868		$	895		$	1,519		$	1,763
Equity/owned		237			175			260			140			170			136			412			306
Investment expenses		(34)			(40)			(53)			(51)			(54)			(48)			(74)			(102)
Total	$	898		$	959		$	1,026		$	950		$	984		$	983		$	1,857		$	1,967
Consolidated Interest-bearing pre-tax yield(4)		4.0	%		4.1	%		4.1	%		4.3	%		4.3	%		4.3	%		4.0	%		4.3	%
Property-Liability net investment income
Interest-bearing excluding prepayment premiums and litigation proceeds	$	219		$	219		$	218		$	229		$	234		$	246		$	438		$	480
Prepayment premiums and litigation proceeds		12			13			9			4			10			15			25			25
Total Interest-bearing		231			232			227			233			244			261			463			505
Equity/owned		137			101			183			99			125			102			238			227
Less: Investment expenses		(17)			(21)			(28)			(23)			(26)			(22)			(38)			(48)
Total		351			312			382			309			343			341			663			684
Less: prepayment premiums and litigation proceeds		(12)			(13)			(9)			(4)			(10)			(15)			(25)			(25)
Total excluding prepayment premiums and litigation proceeds	$	339		$	299		$	373		$	305		$	333		$	326		$	638		$	659
Property-Liability interest-bearing pre-tax yield		2.9	%		3.0	%		2.9	%		3.1	%		3.2	%		3.5	%		2.9	%		3.4	%
Property-Liability interest-bearing pre-tax yield excluding prepayment premiums and litigation proceeds		2.8	%		2.8	%		2.8	%		3.0	%		3.1	%		3.3	%		2.8	%		3.2	%
Allstate Financial net investment income
Interest-bearing excluding prepayment premiums and litigation proceeds	$	432		$	556		$	569		$	584		$	591		$	599		$	988		$	1,190
Prepayment premiums and litigation proceeds		24			28			15			32			27			27			52			54
Total interest-bearing		456			584			584			616			618			626			1,040			1,244
Equity/owned		98			74			77			43			43			34			172			77
Less: Investment expenses		(16)			(18)			(24)			(26)			(28)			(25)			(34)			(53)
Total		538			640			637			633			633			635			1,178			1,268
Less: prepayment premiums and litigation proceeds		(24)			(28)			(15)			(32)			(27)			(27)			(52)			(54)
Total excluding prepayment premiums and litigation proceeds	$	514		$	612		$	622		$	601		$	606		$	608		$	1,126		$	1,214
Allstate Financial interest-bearing pre-tax yield		5.3	%		5.3	%		5.0	%		5.2	%		5.0	%		4.9	%		5.3	%		5.0	%
Allstate Financial interest-bearing pre-tax yield excluding prepayment premiums and litigation proceeds		5.0	%		5.0	%		4.8	%		4.9	%		4.8	%		4.7	%		5.0	%		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.  Amounts related to investments classified as held for sale were excluded from the total return calculation in 2014 and were included in the total return calculation in 2013.

(4)Pre-tax interest-bearing yield is calculated as annualized interest-bearing investment income before investment expense divided by the average of interest-bearing investment balances at the end of each quarter during the year.  Interest-bearing investment balances, for purposes of the pre-tax interest-bearing yield calculation, exclude unrealized capital gains and losses. Amounts related to investments classified as held for sale were excluded from the pre-tax interest-bearing yield calculation in 2014 and were included in the pre-tax interest-bearing yield calculation in 2013.

50

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,

 - amortization of purchased intangible assets, after-tax,

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

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

Net income 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, amortization of purchased intangible assets, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items.  Realized capital gains and losses, valuation changes on embedded derivatives that are not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process.  Consistent with our intent to protect results or earn additional income, operating income includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes.  These instruments are used for economic hedges and to replicate fixed income securities, and by including them in operating income, we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments.  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 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,  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 and amortization of purchased intangible assets.  Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio.  Prior year reserve reestimates are caused by  unexpected loss development on historical reserves. Amortization of purchased intangible assets primarily 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 “Allstate Brand Profitability Measures”, “Encompass Brand Profitability Measures” , “Esurance Brand Profitability Measures”, “Auto Profitability Measures”, “Homeowners Profitability Measures”. “Allstate Personal Lines Profitability Measures” and “ Business to Business-Encompass, Commercial and Other Business Lines 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”.

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