Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 36

THE ALLSTATE CORPORATION
ALLSTATE FINANCIAL RESULTS
($ in millions)
 |  | Three months ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Twelve months ended
 |  |  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | March 31, |  |  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | March 31, |  |  | Dec. 31, |  |  | Dec. 31,
 |  |  | 2012 |  |  | 2012 |  |  | 2012 |  |  | 2012 |  |  | 2011 |  |  | 2011 |  |  | 2011 |  |  | 2011 |  |  | 2012 |  |  | 2011
Investments |  | $ | 56999 |  | $ | 58155 |  | $ | 57734 |  | $ | 57620 |  | $ | 57373 |  | $ | 59068 |  | $ | 59659 |  | $ | 60484 |  | $ | 56999 |  | $ | 57373
Premiums |  | $ | 299 |  | $ | 291 |  | $ | 291 |  | $ | 287 |  | $ | 305 |  | $ | 287 |  | $ | 286 |  | $ | 312 |  | $ | 1168 |  | $ | 1190
Contract charges |  |  | 267 |  |  | 272 |  |  | 268 |  |  | 266 |  |  | 265 |  |  | 265 |  |  | 261 |  |  | 257 |  |  | 1073 |  |  | 1048
Net investment income |  |  | 665 |  |  | 632 |  |  | 663 |  |  | 687 |  |  | 656 |  |  | 682 |  |  | 694 |  |  | 684 |  |  | 2647 |  |  | 2716
Periodic settlements and accruals on non-
hedge derivative instruments |  |  | 10 |  |  | 15 |  |  | 15 |  |  | 15 |  |  | 16 |  |  | 18 |  |  | 19 |  |  | 17 |  |  | 55 |  |  | 70
Contract benefits |  |  | -464 |  |  | -453 |  |  | -462 |  |  | -439 |  |  | -430 |  |  | -455 |  |  | -422 |  |  | -454 |  |  | -1818 |  |  | -1761
Interest credited to contractholder funds |  |  | -347 |  |  | -357 |  |  | -362 |  |  | -368 |  |  | -385 |  |  | -395 |  |  | -412 |  |  | -425 |  |  | -1434 |  |  | -1617
Amortization of deferred policy
acquisition costs |  |  | -71 |  |  | -117 |  |  | -76 |  |  | -86 |  |  | -78 |  |  | -83 |  |  | -87 |  |  | -95 |  |  | -350 |  |  | -343
Operating costs and expenses |  |  | -152 |  |  | -147 |  |  | -135 |  |  | -142 |  |  | -159 |  |  | -129 |  |  | -135 |  |  | -132 |  |  | -576 |  |  | -555
Restructuring and related charges |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | -3 |  |  | 0 |  |  | 0 |  |  | 2 |  |  | 0 |  |  | -1
Income tax expense on operations |  |  | -63 |  |  | -39 |  |  | -64 |  |  | -70 |  |  | -57 |  |  | -61 |  |  | -69 |  |  | -53 |  |  | -236 |  |  | -240
Operating income |  |  | 144 |  |  | 97 |  |  | 138 |  |  | 150 |  |  | 130 |  |  | 129 |  |  | 135 |  |  | 113 |  |  | 529 |  |  | 507
Realized capital gains and losses, after-tax |  |  | 37 |  |  | -36 |  |  | 5 |  |  | -14 |  |  | 43 |  |  | 142 |  |  | 40 |  |  | 25 |  |  | -8 |  |  | 250
Valuation changes on embedded derivatives that are not
hedged, after-tax |  |  | -6 |  |  | 97 |  |  | -3 |  |  | -6 |  |  | -13 |  |  | -4 |  |  | -3 |  |  | 8 |  |  | 82 |  |  | -12
DAC and DSI (amortization) accretion relating to
realized capital gains and losses and valuation changes
on embedded derivatives that are not hedged, after-tax |  |  | -4 |  |  | -28 |  |  | 0 |  |  | -10 |  |  | -16 |  |  | -65 |  |  | -5 |  |  | -22 |  |  | -42 |  |  | -108
DAC and DSI unlocking relating to realized capital gains
and losses, after-tax |  |  | 0 |  |  | 4 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 3 |  |  | 4 |  |  | 3
Reclassification of periodic settlements and accruals on
non-hedge derivative instruments, after-tax |  |  | -7 |  |  | -9 |  |  | -10 |  |  | -10 |  |  | -10 |  |  | -12 |  |  | -11 |  |  | -12 |  |  | -36 |  |  | -45
Gain (loss) on disposition of operations, after-tax |  |  | 2 |  |  | 6 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | 2 |  |  | 5 |  |  | -13 |  |  | 12 |  |  | -5
Net income |  | $ | 166 |  | $ | 131 |  | $ | 132 |  | $ | 112 |  | $ | 135 |  | $ | 192 |  | $ | 161 |  | $ | 102 |  | $ | 541 |  | $ | 590