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Exhibit 10.5  

 
  Annual Incentive Plans
  Performance Goals and Target Awards for 2006    
    

        The registrant maintains two shareholder-approved plans under which executive officers have the opportunity to receive an annual cash award based on the
achievement of performance goals over a one-year period. The Annual Covered Employee Incentive Compensation Plan (Covered Employee Plan) governs awards to those executive officers who are
considered "covered employees" as defined in Section 162(m)(3) of the Internal Revenue Code. Annual incentive awards to all other executive officers are governed by and made under the Annual
Executive Incentive Compensation Plan (Executive Plan). The Compensation and Succession Committee of the Board of Directors establishes performance goals for each fiscal year and sets threshold,
target and maximum award opportunities. The Committee has the authority to adjust the amount of awards, but has no authority to increase the amount of an award otherwise payable under the Covered
Employee Plan. Payments are made after the Committee has certified in writing the degree of attainment of the performance goals. 

        On
February 21, 2006, the Committee approved performance goals and target awards under the plans for 2006. The same performance goals and target awards apply to both the Covered
Employee Plan and Executive Plan. For the chief executive officer, chief operating officer, chief financial officer and other executive officers in corporate functions, there are two equally-weighted
goals. One is based on an adjusted operating income per diluted share measure as approved by the Committee. The other goal is based on combined business unit results. 

        For
Allstate Protection executive officers, their award opportunity is based on five performance goals, generally weighted as follows: 50% based on a matrix that measures the results of
premium growth, policy growth (excluding property insurance in selected markets) and combined ratio; 15% based on a measure of sales of Allstate Financial products by Allstate exclusive agencies; 10%
based on expense ratio reduction; 15% based on a measure of customer loyalty that is a relative ranking compared to a peer group of companies; and 10% based on the corporate adjusted operating income
per diluted share measure. Property insurance policy growth for selected markets is excluded from the matrix that measures results of premium growth, policy growth and combined ratio because
management is evaluating the implications of reducing the Registrant's exposure to catastrophe losses. 

        For
the Allstate Financial executive officer, there are four performance goals, weighted as follows: 30% based on adjusted Allstate Financial operating income; 25% based on expense
management; 35% based on a matrix that measures the combination of sales and returns; and 10% based on the corporate adjusted operating income per diluted share measure. 

        For
the executive officer in the Investments business unit, there are six performance goals, weighted as follows: 22.5% based on property/casualty portfolio one-year return; 

22.5%
based on property/casualty portfolio three-year return; 17.5% on Allstate Financial spread volume goal; 17.5% on Allstate Financial spread higher value added total; 10% on Allstate
Financial portfolio loss reduction; and 10% based on the corporate adjusted operating income per diluted share measure. 

        Threshold,
target and maximum levels of performance are established for each performance goal. If the maximum level of performance is achieved, the award would be three times the
executive officer's target award, with target awards generally ranging from 60% to 120% of annual salary for the fiscal year. 

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Exhibit 10.7  

 
  Long-Term Executive Incentive Plan—Performance Goals and Target Awards
  for Current Performance Cycles    
    

        The registrant maintains a shareholder-approved Long-Term Executive Incentive Compensation Plan to provide certain executives, including the executive
officers, the opportunity to receive a cash award based on the achievement of performance objectives over a three-year cycle. The Compensation and Succession Committee of the Board of
Directors establishes performance goals for each cycle and sets threshold, target and maximum levels of performance.    Awards are calculated on an executive's annual salary as of the
beginning of the cycle. The amount of each executive's payout is dependent on the achievement of the performance goals. The Committee has the authority to adjust the amount of awards payable under the
plan, but has no authority to increase the amount of an award otherwise payable to a "covered employee" as defined in Section 162(m)(3) of the Internal Revenue Code. Payments are made in March
of the year following the end of the respective cycle, after the Committee has certified in writing the degree of attainment of the cycle's performance goals. 

        The
performance goals and target awards for the following cycles are set forth below: 2003-2005, 2004-2006 and 2005-2007. 

2003-2005 Cycle  

        The performance goal for the 2003-2005 cycle is adjusted return on equity as compared to a select peer group of companies representing both the
property/casualty and financial services industries. No payout is made unless adjusted return on equity exceeds the average rate on three-year treasury notes over the cycle, plus 200 basis
points. Award opportunities range from 0% to 300% of an executive officer's target award, depending on adjusted return on equity performance relative to the peer group. An executive officer's target
award generally ranges from 70% to 155% of salary. 

2004-2006 Cycle  

        For the 2004-2006 cycle there are three performance goals. Fifty percent of the award opportunity is based on the same adjusted return on equity
performance goal approved for the 2003-2005 cycle. No payment based on adjusted return on equity is made unless that return exceeds the average rate on three-year Treasury
notes over the cycle, plus 200 basis points. Twenty-five percent of the award opportunity is based on Allstate Protection (property and casualty) policy growth over the cycle and the
remaining 25% is based on Allstate Financial growth in premium and deposits over the cycle. Awards range from 0% to 300% of an executive officer's target award, depending on the level of performance
achieved for the cycle. An executive officer's target award generally ranges from 70% to 155% of salary. 

2005-2007 Cycle  

        The performance goals and target awards for the three-year performance cycle beginning with 2005 and concluding in 2007 are identical to the goals and
award opportunities approved for the 2004-2006 cycle as described above. 

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Exhibit 10.8  

 
  Long-Term Executive Incentive Plan—Performance Goals and Target Awards
  for the 2006-2008 Cycle    
    

        The registrant maintains a shareholder-approved Long-Term Executive Incentive Compensation Plan to provide certain executives, including the executive
officers, the opportunity to receive a cash award based on the achievement of performance objectives over a three-year cycle. The Compensation and Succession Committee of the Board of
Directors establishes performance goals for each cycle and sets threshold, target and maximum levels of performance. Awards are calculated on an executive's annual salary as of the beginning of the
cycle. The amount of each executive's payout is dependent on the achievement of the performance goals. The Committee has the authority to adjust the amount of awards payable under the Plan, but has no
authority to increase the amount of an award otherwise payable to a "covered employee" as defined in Section 162(m)(3) of the Internal Revenue Code. Payments are made in March of the year
following the end of the respective cycle, after the Committee has certified in writing the degree of attainment of the cycle's performance goals. 

        On
February 21, 2006 the Committee approved performance goals and target awards for the 2006-2008 three-year performance cycle. Fifty percent of the
performance measure for the 2006-2008 cycle is based on the three-year average net income return on equity, with equity adjusted to exclude unrealized net capital gains and
losses, as compared to a peer group of companies representing both the property/casualty and financial services industries over the same three-year period. No payment based on this return
on equity measure is made unless that return exceeds the average rate on three-year Treasury Notes over the three-year cycle, plus 200 basis points. Twenty-five
percent of the performance measure for the cycle is based on Allstate Protection's cumulative three-year policies in force ("PIF") growth, which is the sum of the annual PIF growth for
each of the three years, excluding property insurance. Growth in property insurance is excluded from this measure as management is evaluating the implications of reducing the Registrant's exposure to
catastrophe losses. The remaining twenty-five percent is based on the three year-average Allstate Financial operating income return on equity, with equity adjusted to exclude
unrealized net capital gains and losses. Award opportunities range from 0% to 300% of an executive officer's target award, depending on the level of performance achieved for the cycle. An executive
officer's target award generally ranges from 55% to 155% of salary. 

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Long-Term Executive Incentive Plan—Performance Goals and Target Awards for the 2006-2008 Cycle

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