Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 12

THE ALLSTATE CORPORATION
PROPERTY-LIABILITY RESULTS
($ 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
Premiums written |  | $ | 6637 |  | $ | 7063 |  | $ | 6864 |  | $ | 6463 |  | $ | 6426 |  | $ | 6728 |  | $ | 6611 |  | $ | 6215 |  | $ | 27027 |  | $ | 25980
Decrease (increase) in unearned premiums |  |  | 120 |  |  | -411 |  |  | -198 |  |  | 167 |  |  | 174 |  |  | -276 |  |  | -165 |  |  | 234 |  |  | -322 |  |  | -33
Other |  |  | -13 |  |  | 45 |  |  | 0 |  |  | 0 |  |  | 5 |  |  | -20 |  |  | 11 |  |  | -1 |  |  | 32 |  |  | -5
Premiums earned |  |  | 6744 |  |  | 6697 |  |  | 6666 |  |  | 6630 |  |  | 6605 |  |  | 6432 |  |  | 6457 |  |  | 6448 |  |  | 26737 |  |  | 25942
Claims and claims expense |  |  | -5042 |  |  | -4293 |  |  | -4810 |  |  | -4339 |  |  | -4198 |  |  | -5132 |  |  | -6355 |  |  | -4476 |  |  | -18484 |  |  | -20161
Amortization of deferred policy acquisition costs |  |  | -870 |  |  | -870 |  |  | -865 |  |  | -878 |  |  | -880 |  |  | -866 |  |  | -867 |  |  | -864 |  |  | -3483 |  |  | -3477
Operating costs and expenses |  |  | -939 |  |  | -866 |  |  | -847 |  |  | -884 |  |  | -913 |  |  | -735 |  |  | -726 |  |  | -769 |  |  | -3536 |  |  | -3143
Restructuring and related charges |  |  | -9 |  |  | -9 |  |  | -10 |  |  | -6 |  |  | -13 |  |  | -8 |  |  | -11 |  |  | -11 |  |  | -34 |  |  | -43
Underwriting (loss) income * |  |  | -116 |  |  | 659 |  |  | 134 |  |  | 523 |  |  | 601 |  |  | -309 |  |  | -1502 |  |  | 328 |  |  | 1200 |  |  | -882
Net investment income |  |  | 362 |  |  | 299 |  |  | 352 |  |  | 313 |  |  | 309 |  |  | 298 |  |  | 310 |  |  | 284 |  |  | 1326 |  |  | 1201
Periodic settlements and accruals on non-hedge
derivative instruments |  |  | -2 |  |  | -1 |  |  | -2 |  |  | -1 |  |  | -3 |  |  | -5 |  |  | -3 |  |  | -4 |  |  | -6 |  |  | -15
Business combination expenses and the amortization
of purchased intangible assets |  |  | 25 |  |  | 26 |  |  | 26 |  |  | 47 |  |  | 49 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 124 |  |  | 49
Income tax (expense) benefit on operations |  |  | -69 |  |  | -316 |  |  | -153 |  |  | -281 |  |  | -302 |  |  | 38 |  |  | 463 |  |  | -181 |  |  | -819 |  |  | 18
Operating income (loss) |  |  | 200 |  |  | 667 |  |  | 357 |  |  | 601 |  |  | 654 |  |  | 22 |  |  | -732 |  |  | 427 |  |  | 1825 |  |  | 371
Realized capital gains and losses, after-tax |  |  | 96 |  |  | -11 |  |  | 12 |  |  | 124 |  |  | 7 |  |  | 15 |  |  | -6 |  |  | 38 |  |  | 221 |  |  | 54
Reclassification of periodic settlements and accruals
on non-hedge derivative instruments, after-tax |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 4 |  |  | 1 |  |  | 3 |  |  | 3 |  |  | 10
Business combination expenses and the amortization
of purchased intangible assets, after-tax |  |  | -16 |  |  | -18 |  |  | -16 |  |  | -31 |  |  | -32 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | -81 |  |  | -32
Net income (loss) |  | $ | 280 |  | $ | 639 |  | $ | 354 |  | $ | 695 |  | $ | 631 |  | $ | 41 |  | $ | -737 |  | $ | 468 |  | $ | 1968 |  | $ | 403
Catastrophe losses |  | $ | 1061 |  | $ | 206 |  | $ | 819 |  | $ | 259 |  | $ | 66 |  | $ | 1077 |  | $ | 2339 |  | $ | 333 |  | $ | 2345 |  | $ | 3815
Operating ratios
Claims and claims expense ("loss") ratio |  |  | 74.8 |  |  | 64.1 |  |  | 72.15721572157216 |  |  | 65.4 |  |  | 63.5 |  |  | 79.8 |  |  | 98.42031903360694 |  |  | 69.4 |  |  | 69.1 |  |  | 77.7
Expense ratio |  |  | 26.9 |  |  | 26.1 |  |  | 25.83258325832583 |  |  | 26.66666666666667 |  |  | 27.44292202876609 |  |  | 25 |  |  | 24.9412575499458 |  |  | 25.5 |  |  | 26.4 |  |  | 25.7
Combined ratio |  |  | 101.7 |  |  | 90.15977303270121 |  |  | 98 |  |  | 92.1 |  |  | 90.9 |  |  | 104.8351990049751 |  |  | 123.3 |  |  | 94.9 |  |  | 95.5 |  |  | 103.4
Combined ratio excluding the effect of catastrophes * |  |  | 85.96749703440095 |  |  | 87.05977303270122 |  |  | 85.71377137713772 |  |  | 88.19999999999999 |  |  | 89.900757002271 |  |  | 88.13519900497514 |  |  | 87.07574725104539 |  |  | 89.7 |  |  | 86.72938250364663 |  |  | 88.69411764705883
Effect of catastrophe losses on combined ratio |  |  | 15.73250296559905 |  |  | 3.1 |  |  | 12.28622862286229 |  |  | 3.9 |  |  | 0.9992429977289932 |  |  | 16.7 |  |  | 36.22425274895462 |  |  | 5.2 |  |  | 8.770617496353369 |  |  | 14.70588235294118
Combined ratio |  |  | 101.7 |  |  | 90.15977303270121 |  |  | 98 |  |  | 92.1 |  |  | 90.9 |  |  | 104.8351990049751 |  |  | 123.3 |  |  | 94.9 |  |  | 95.5 |  |  | 103.4
Combined ratio excluding the effect of catastrophes, prior year
 | reserve reestimates, business combination expenses and
 | the amortization of purchased intangible assets ("underlying") |  | 86.66749703440094 |  |  | 87.77153949529642 |  |  | 86.32373237323733 |  |  | 88.09110105580692 |  |  | 90.65889477668433 |  |  | 89.2 |  |  | 87.47574725104539 |  |  | 89.9 |  |  | 87.22938250364663 |  |  | 89.30523475445224
Effect of catastrophe losses on combined ratio |  |  | 15.73250296559905 |  |  | 3.1 |  |  | 12.28622862286229 |  |  | 3.906485671191553 |  |  | 0.999242997728993 |  |  | 16.7 |  |  | 36.22425274895462 |  |  | 5.2 |  |  | 8.770617496353369 |  |  | 14.70588235294118
Effect of prior year reserve reestimates
 | on combined ratio |  | -2.3 |  |  | -2.2 |  |  | -2.4 |  |  | -3.1 |  |  | -2 |  |  | -1.8 |  |  | -0.7 |  |  | -0.7 |  |  | -2.5 |  |  | -1.3
Effect of catastrophe losses included in prior year
 | reserve reestimates on combined ratio |  | 1.2 |  |  | 1.1 |  |  | 1.4 |  |  | 2.5 |  |  | 0.5 |  |  | 0.7 |  |  | 0.3 |  |  | 0.5 |  |  | 1.5 |  |  | 0.5
Effect of business combination expenses and the amortization of
 | purchased intangible assets on combined ratio |  | 0.4 |  |  | 0.3882335374048081 |  |  | 0.39003900390039 |  |  | 0.7088989441930619 |  |  | 0.7418622255866768 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0.5 |  |  | 0.1888828926065839
Combined ratio |  |  | 101.7 |  |  | 90.15977303270121 |  |  | 98 |  |  | 92.1 |  |  | 90.9 |  |  | 104.8 |  |  | 123.3 |  |  | 94.9 |  |  | 95.5 |  |  | 103.4
Effect of restructuring and related
charges on combined ratio |  |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.1 |  |  | 0.2 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |  |  | 0.1 |  |  | 0.2
Effect of Discontinued Lines and Coverages
on combined ratio |  |  | 0 |  |  | 0.7 |  |  | 0.1 |  |  | 0 |  |  | 0 |  |  | 0.2 |  |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.1