Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 19

THE ALLSTATE CORPORATION
ALLSTATE BRAND PROFITABILITY MEASURES
($ in millions, except ratios)
 |  | 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
Net premiums written |  | $ | 6102 |  | $ | 6485 |  | $ | 6351 |  | $ | 5951 |  | $ | 5988 |  | $ | 6446 |  | $ | 6338 |  | $ | 5971 |  | $ | 24889 |  | $ | 24743
Net premiums earned
 | Standard auto | $ | 3921 |  | $ | 3910 |  | $ | 3909 |  | $ | 3897 |  | $ | 3897 |  | $ | 3916 |  | $ | 3938 |  | $ | 3928 |  | $ | 15637 |  | $ | 15679
 | Non-standard auto |  | 171 |  |  | 177 |  |  | 184 |  |  | 183 |  |  | 186 |  |  | 196 |  |  | 205 |  |  | 210 |  |  | 715 |  |  | 797
 | Auto |  | 4092 |  |  | 4087 |  |  | 4093 |  |  | 4080 |  |  | 4083 |  |  | 4112 |  |  | 4143 |  |  | 4138 |  |  | 16352 |  |  | 16476
 | Homeowners |  | 1514 |  |  | 1499 |  |  | 1487 |  |  | 1480 |  |  | 1468 |  |  | 1462 |  |  | 1457 |  |  | 1448 |  |  | 5980 |  |  | 5835
 | Other personal lines |  | 600 |  |  | 591 |  |  | 583 |  |  | 583 |  |  | 587 |  |  | 590 |  |  | 587 |  |  | 588 |  |  | 2357 |  |  | 2352
 | Total |  | 6206 |  |  | 6177 |  |  | 6163 |  |  | 6143 |  |  | 6138 |  |  | 6164 |  |  | 6187 |  |  | 6174 |  |  | 24689 |  |  | 24663
Incurred losses
 | Standard auto | $ | 2988 |  | $ | 2617 |  | $ | 2734 |  | $ | 2713 |  | $ | 2713 |  | $ | 2712 |  | $ | 2882 |  | $ | 2760 |  | $ | 11052 |  | $ | 11067
 | Non-standard auto |  | 104 |  |  | 103 |  |  | 112 |  |  | 123 |  |  | 110 |  |  | 112 |  |  | 142 |  |  | 136 |  |  | 442 |  |  | 500
 | Auto |  | 3092 |  |  | 2720 |  |  | 2846 |  |  | 2836 |  |  | 2823 |  |  | 2824 |  |  | 3024 |  |  | 2896 |  |  | 11494 |  |  | 11567
 | Homeowners |  | 1045 |  |  | 735 |  |  | 1218 |  |  | 836 |  |  | 657 |  |  | 1587 |  |  | 2493 |  |  | 983 |  |  | 3834 |  |  | 5720
 | Other personal lines |  | 429 |  |  | 416 |  |  | 369 |  |  | 314 |  |  | 351 |  |  | 450 |  |  | 590 |  |  | 396 |  |  | 1528 |  |  | 1787
 | Total |  | 4566 |  |  | 3871 |  |  | 4433 |  |  | 3986 |  |  | 3831 |  |  | 4861 |  |  | 6107 |  |  | 4275 |  |  | 16856 |  |  | 19074
Expenses
 | Standard auto | $ | 1001 |  | $ | 977 |  | $ | 1000 |  | $ | 998 |  | $ | 1008 |  | $ | 973 |  | $ | 989 |  | $ | 973 |  | $ | 3976 |  | $ | 3943
 | Non-standard auto |  | 45 |  |  | 43 |  |  | 42 |  |  | 44 |  |  | 49 |  |  | 48 |  |  | 47 |  |  | 48 |  |  | 174 |  |  | 192
 | Auto |  | 1046 |  |  | 1020 |  |  | 1042 |  |  | 1042 |  |  | 1057 |  |  | 1021 |  |  | 1036 |  |  | 1021 |  |  | 4150 |  |  | 4135
 | Homeowners |  | 377 |  |  | 358 |  |  | 342 |  |  | 351 |  |  | 370 |  |  | 341 |  |  | 324 |  |  | 340 |  |  | 1428 |  |  | 1375
 | Other personal lines |  | 216 |  |  | 182 |  |  | 164 |  |  | 178 |  |  | 212 |  |  | 167 |  |  | 164 |  |  | 203 |  |  | 740 |  |  | 746
 | Total |  | 1639 |  |  | 1560 |  |  | 1548 |  |  | 1571 |  |  | 1639 |  |  | 1529 |  |  | 1524 |  |  | 1564 |  |  | 6318 |  |  | 6256
Underwriting income (loss)
 | Standard auto | $ | -68 |  | $ | 316 |  | $ | 175 |  | $ | 186 |  | $ | 176 |  | $ | 231 |  | $ | 67 |  | $ | 195 |  | $ | 609 |  | $ | 669
 | Non-standard auto |  | 22 |  |  | 31 |  |  | 30 |  |  | 16 |  |  | 27 |  |  | 36 |  |  | 16 |  |  | 26 |  |  | 99 |  |  | 105
 | Auto |  | -46 |  |  | 347 |  |  | 205 |  |  | 202 |  |  | 203 |  |  | 267 |  |  | 83 |  |  | 221 |  |  | 708 |  |  | 774
 | Homeowners |  | 92 |  |  | 406 |  |  | -73 |  |  | 293 |  |  | 441 |  |  | -466 |  |  | -1360 |  |  | 125 |  |  | 718 |  |  | -1260
 | Other personal lines |  | -45 |  |  | -7 |  |  | 50 |  |  | 91 |  |  | 24 |  |  | -27 |  |  | -167 |  |  | -11 |  |  | 89 |  |  | -181
 | Total |  | 1 |  |  | 746 |  |  | 182 |  |  | 586 |  |  | 668 |  |  | -226 |  |  | -1444 |  |  | 335 |  |  | 1515 |  |  | -667
Loss ratio |  |  | 73.57396068320979 |  |  | 62.66796179375101 |  |  | 71.92925523284114 |  |  | 64.88686309620707 |  |  | 62.41446725317693 |  |  | 78.86112913692408 |  |  | 98.70696621949249 |  |  | 69.24198250728864 |  |  | 68.27332010206975 |  |  | 77.33852329400315
Expense ratio |  |  | 26.40992587818241 |  |  | 25.15497814473045 |  |  | 25.11763751419763 |  |  | 25.57382386456129 |  |  | 26.70250896057348 |  |  | 24.80532121998702 |  |  | 24.63229351866817 |  |  | 25.43203757693554 |  |  | 25.59034387784033 |  |  | 25.3659327737907
Combined ratio |  |  | 99.9838865613922 |  |  | 87.92293993848146 |  |  | 97.04689274703878 |  |  | 90.46068696076836 |  |  | 89.1169762137504 |  |  | 103.6664503569111 |  |  | 123.3392597381607 |  |  | 94.57402008422416 |  |  | 93.86366397991009 |  |  | 102.7044560677939
Effect of catastrophe losses on combined ratio |  |  | 15.5 |  |  | 3.1 |  |  | 12.9 |  |  | 4.1 |  |  | 0.9 |  |  | 16.3 |  |  | 36.8 |  |  | 5.1 |  |  | 8.9 |  |  | 14.8
Effect of prior year reserve reestimates on combined ratio |  |  | -2.2 |  |  | -2.9 |  |  | -2.5 |  |  | -3.3 |  |  | -2.3 |  |  | -2.1 |  |  | -0.8 |  |  | -0.8 |  |  | -2.7 |  |  | -1.5
Effect of business combination expenses and the amortization
 | of purchased intangible assets on combined ratio |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0.1 |  |  | 0
Effect of advertising expenses on combined ratio |  |  | 2.5 |  |  | 2.4 |  |  | 2.9 |  |  | 3.1 |  |  | 4.2 |  |  | 2.8 |  |  | 2.6 |  |  | 2.2 |  |  | 2.7 |  |  | 3
Combined ratio excluding the effect of catastrophes,
prior year reserve reestimates, business combination expenses,
and the amortization of purchased intangible assets ("underlying") |  |  | 85.28388656139221 |  |  | 86.72293993848147 |  |  | 85.14689274703878 |  |  | 86.96068696076837 |  |  | 89.9169762137504 |  |  | 88.66645035691108 |  |  | 87.13925973816066 |  |  | 89.67402008422417 |  |  | 85.96366397991008 |  |  | 88.90445606779386
 | Effect of catastrophe losses |  | 15.5 |  |  | 3.1 |  |  | 12.9 |  |  | 4.1 |  |  | 0.9 |  |  | 16.3 |  |  | 36.8 |  |  | 5.1 |  |  | 8.9 |  |  | 14.8
 | Effect of prior year non-catastrophe reserve reestimates |  | -0.9 |  |  | -2 |  |  | -1.1 |  |  | -0.7 |  |  | -1.8 |  |  | -1.3 |  |  | -0.6 |  |  | -0.2 |  |  | -1.1 |  |  | -1
 | Effect of business combination expenses and the amortization of
 | purchased intangible assets |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0.1 |  |  | 0
Combined ratio |  |  | 99.9838865613922 |  |  | 87.92293993848146 |  |  | 97.04689274703878 |  |  | 90.46068696076836 |  |  | 89.1169762137504 |  |  | 103.6664503569111 |  |  | 123.3392597381607 |  |  | 94.57402008422416 |  |  | 93.86366397991009 |  |  | 102.7044560677939