Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 26

THE ALLSTATE CORPORATION
HOMEOWNERS PROFITABILITY MEASURES
 |  |  | 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,
($ in millions) |  |  |  | 2012 |  |  | 2012 |  |  | 2012 |  |  | 2012 |  |  | 2011 |  |  | 2011 |  |  | 2011 |  |  | 2011 |  |  | 2012 |  |  | 2011
 | Net premiums written
 |  | Allstate brand | $ | 1477 |  | $ | 1686 |  | $ | 1639 |  | $ | 1258 |  | $ | 1428 |  | $ | 1634 |  | $ | 1606 |  | $ | 1225 |  | $ | 6060 |  | $ | 5893
 |  | Encompass brand |  | 101 |  |  | 108 |  |  | 104 |  |  | 85 |  |  | 89 |  |  | 100 |  |  | 94 |  |  | 79 |  |  | 398 |  |  | 362
 |  |  |  | 1578 |  |  | 1794 |  |  | 1743 |  |  | 1343 |  |  | 1517 |  |  | 1734 |  |  | 1700 |  |  | 1304 |  |  | 6458 |  |  | 6255
 | Net premiums earned
 |  | Allstate brand | $ | 1514 |  | $ | 1499 |  | $ | 1487 |  | $ | 1480 |  | $ | 1468 |  | $ | 1462 |  | $ | 1457 |  | $ | 1448 |  | $ | 5980 |  | $ | 5835
 |  | Encompass brand |  | 98 |  |  | 96 |  |  | 93 |  |  | 92 |  |  | 92 |  |  | 91 |  |  | 91 |  |  | 91 |  |  | 379 |  |  | 365
 |  |  |  | 1612 |  |  | 1595 |  |  | 1580 |  |  | 1572 |  |  | 1560 |  |  | 1553 |  |  | 1548 |  |  | 1539 |  |  | 6359 |  |  | 6200
 | Incurred losses
 |  | Allstate brand | $ | 1045 |  | $ | 735 |  | $ | 1218 |  | $ | 836 |  | $ | 657 |  | $ | 1587 |  | $ | 2493 |  | $ | 983 |  | $ | 3834 |  | $ | 5720
 |  | Encompass brand |  | 121 |  |  | 56 |  |  | 62 |  |  | 51 |  |  | 56 |  |  | 109 |  |  | 98 |  |  | 60 |  |  | 290 |  |  | 323
 |  |  |  | 1166 |  |  | 791 |  |  | 1280 |  |  | 887 |  |  | 713 |  |  | 1696 |  |  | 2591 |  |  | 1043 |  |  | 4124 |  |  | 6043
 | Expenses
 |  | Allstate brand | $ | 377 |  | $ | 358 |  | $ | 342 |  | $ | 351 |  | $ | 370 |  | $ | 341 |  | $ | 324 |  | $ | 340 |  | $ | 1428 |  | $ | 1375
 |  | Encompass brand |  | 31 |  |  | 30 |  |  | 28 |  |  | 28 |  |  | 29 |  |  | 28 |  |  | 28 |  |  | 28 |  |  | 117 |  |  | 113
 |  |  |  | 408 |  |  | 388 |  |  | 370 |  |  | 379 |  |  | 399 |  |  | 369 |  |  | 352 |  |  | 368 |  |  | 1545 |  |  | 1488
 | Underwriting Income
 |  | Allstate brand | $ | 92 |  | $ | 406 |  | $ | -73 |  | $ | 293 |  | $ | 441 |  | $ | -466 |  | $ | -1360 |  | $ | 125 |  | $ | 718 |  | $ | -1260
 |  | Encompass brand |  | -54 |  |  | 10 |  |  | 3 |  |  | 13 |  |  | 7 |  |  | -46 |  |  | -35 |  |  | 3 |  |  | -28 |  |  | -71
 |  |  |  | 38 |  |  | 416 |  |  | -70 |  |  | 306 |  |  | 448 |  |  | -512 |  |  | -1395 |  |  | 128 |  |  | 690 |  |  | -1331
 | Loss ratio
 |  | Allstate brand |  | 69.0224570673712 |  |  | 49.03268845897265 |  |  | 81.90988567585742 |  |  | 56.48648648648648 |  |  | 44.75476839237057 |  |  | 108.6499316005472 |  |  | 171.105010295127 |  |  | 67.88674033149171 |  |  | 64.11371237458195 |  |  | 98.02913453299057
 |  | Encompass brand |  | 123.469387755102 |  |  | 58.33333333333334 |  |  | 66.66666666666666 |  |  | 55.43478260869566 |  |  | 60.86956521739131 |  |  | 119.7802197802198 |  |  | 107.6923076923077 |  |  | 65.93406593406593 |  |  | 76.51715039577837 |  |  | 88.4931506849315
 |  | Allstate Protection |  | 72.33250620347394 |  |  | 49.59247648902821 |  |  | 81.0126582278481 |  |  | 56.42493638676844 |  |  | 45.7051282051282 |  |  | 109.2079845460399 |  |  | 167.3772609819121 |  |  | 67.67128005198181 |  |  | 64.7529643025633 |  |  | 97.46774193548387
 | Expense ratio
 |  | Allstate brand |  | 24.90092470277411 |  |  | 23.88258839226151 |  |  | 22.99932750504371 |  |  | 23.71621621621621 |  |  | 25.20435967302452 |  |  | 23.32421340629275 |  |  | 22.23747426218257 |  |  | 23.48066298342541 |  |  | 23.87959866220736 |  |  | 23.64755784061697
 |  | Encompass brand |  | 31.63265306122449 |  |  | 31.25 |  |  | 30.10752688172043 |  |  | 30.53478260869566 |  |  | 31.52173913043478 |  |  | 30.66923076923077 |  |  | 30.76923076923077 |  |  | 30.76923076923077 |  |  | 30.87071240105541 |  |  | 30.95890410958904
 |  | Allstate Protection |  | 25.31017369727047 |  |  | 24.32601880877743 |  |  | 23.41772151898734 |  |  | 24.10941475826972 |  |  | 25.57692307692307 |  |  | 23.76046361880232 |  |  | 22.7390180878553 |  |  | 24.01163092917479 |  |  | 24.2962729988992 |  |  | 23.98387096774194
 | Combined ratio
 |  | Allstate brand |  | 93.92338177014531 |  |  | 72.91527685123415 |  |  | 104.9092131809011 |  |  | 80.2027027027027 |  |  | 69.95912806539509 |  |  | 131.8741450068399 |  |  | 193.3424845573095 |  |  | 91.36740331491713 |  |  | 87.99331103678931 |  |  | 121.5766923736075
 |  | Encompass brand |  | 155.1020408163265 |  |  | 89.58333333333334 |  |  | 96.7741935483871 |  |  | 85.86956521739131 |  |  | 92.3913043478261 |  |  | 150.5494505494505 |  |  | 138.4615384615385 |  |  | 96.7032967032967 |  |  | 107.3878627968338 |  |  | 119.4520547945205
 |  | Allstate Protection |  | 97.64267990074443 |  |  | 73.91849529780565 |  |  | 104.4303797468354 |  |  | 80.53435114503816 |  |  | 71.28205128205128 |  |  | 132.9684481648422 |  |  | 190.1162790697674 |  |  | 91.6829109811566 |  |  | 89.14923730146249 |  |  | 121.4516129032258
 | Effect of catastrophe losses on combined ratio
 |  | Allstate brand |  | 32 |  |  | 7.8 |  |  | 40.2 |  |  | 12.56756756756757 |  |  | 3.474114441416894 |  |  | 55.81395348837209 |  |  | 123.1983527796843 |  |  | 17.74861878453039 |  |  | 23.2 |  |  | 50.02570694087404
 |  | Encompass brand |  | 77.6 |  |  | 13.5 |  |  | 15.1 |  |  | 6.521739130434782 |  |  | 10.8695652173913 |  |  | 70.32967032967034 |  |  | 61.53846153846154 |  |  | 16.48351648351648 |  |  | 28.8 |  |  | 39.72602739726027
 | Effect of prior year reserve reestimates on combined ratio
 |  | Allstate brand |  | -5 |  |  | -4.3 |  |  | -3.5 |  |  | -7.905405405405405 |  |  | -2.4 |  |  | 0 |  |  | 0.2745367192862045 |  |  | -2.7 |  |  | -5.2 |  |  | -1.2
 |  | Encompass brand |  | 2 |  |  | -8.3 |  |  | -4.3 |  |  | -2.173913043478261 |  |  | 5.4 |  |  | -4.395604395604396 |  |  | -1.098901098901099 |  |  | 1.1 |  |  | -3.2 |  |  | 0.3
 | Allstate brand combined ratio excluding the effect of
 | catastrophes and prior year reserve reestimates ("underlying") |  |  | 62.42338177014531 |  |  | 66.21527685123415 |  |  | 64.60921318090114 |  |  | 67.0027027027027 |  |  | 66.95912806539509 |  |  | 73.27414500683993 |  |  | 69.44248455730956 |  |  | 73.96740331491712 |  |  | 65.0933110367893 |  |  | 70.8509854327335
 |  | Effect of catastrophe losses on combined ratio |  | 32 |  |  | 7.8 |  |  | 40.2 |  |  | 12.6 |  |  | 3.5 |  |  | 55.8 |  |  | 123.2 |  |  | 17.7 |  |  | 23.2 |  |  | 50.02570694087404
 |  | Effect of prior year non-catastrophe reserve reestimates
 |  | on combined ratio |  | -0.5 |  |  | -1.1 |  |  | 0.1 |  |  | 0.6 |  |  | -0.5 |  |  | 2.8 |  |  | 0.7 |  |  | -0.3 |  |  | -0.3 |  |  | 0.7
 | Allstate brand combined ratio |  |  | 93.92338177014531 |  |  | 72.91527685123415 |  |  | 104.9092131809011 |  |  | 80.2027027027027 |  |  | 69.95912806539509 |  |  | 131.8741450068399 |  |  | 193.3424845573095 |  |  | 91.36740331491713 |  |  | 87.99331103678931 |  |  | 121.5766923736075
 |  | Effect of catastrophe losses included in prior year
 |  | reserve reestimates on combined ratio |  | -4.5 |  |  | -3.2 |  |  | -3.6 |  |  | -8.5 |  |  | -1.9 |  |  | -2.8 |  |  | -0.4 |  |  | -2.4 |  |  | -4.9 |  |  | -1.9