Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 14

THE ALLSTATE CORPORATION
PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS
($ 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
Property-Liability Underwriting Summary
Allstate Protection |  | $ | -112 |  | $ | 701 |  | $ | 138 |  | $ | 526 |  | $ | 604 |  | $ | -297 |  | $ | -1498 |  | $ | 334 |  | $ | 1253 |  | $ | -857
Discontinued Lines and Coverages |  |  | -4 |  |  | -42 |  |  | -4 |  |  | -3 |  |  | -3 |  |  | -12 |  |  | -4 |  |  | -6 |  |  | -53 |  |  | -25
Underwriting (loss) income |  | $ | -116 |  | $ | 659 |  | $ | 134 |  | $ | 523 |  | $ | 601 |  | $ | -309 |  | $ | -1502 |  | $ | 328 |  | $ | 1200 |  | $ | -882
Allstate Protection Underwriting Summary
Premiums written |  | $ | 6636 |  | $ | 7064 |  | $ | 6864 |  | $ | 6462 |  | $ | 6426 |  | $ | 6728 |  | $ | 6611 |  | $ | 6216 |  | $ | 27026 |  | $ | 25981
Premiums earned |  | $ | 6745 |  | $ | 6696 |  | $ | 6666 |  | $ | 6630 |  | $ | 6604 |  | $ | 6432 |  | $ | 6457 |  | $ | 6449 |  | $ | 26737 |  | $ | 25942
Claims and claims expense |  |  | -5038 |  |  | -4251 |  |  | -4808 |  |  | -4336 |  |  | -4195 |  |  | -5121 |  |  | -6352 |  |  | -4472 |  |  | -18433 |  |  | -20140
Amortization of deferred policy
acquisition costs |  |  | -870 |  |  | -870 |  |  | -865 |  |  | -878 |  |  | -880 |  |  | -866 |  |  | -867 |  |  | -864 |  |  | -3483 |  |  | -3477
Operating costs and expenses |  |  | -940 |  |  | -865 |  |  | -845 |  |  | -884 |  |  | -912 |  |  | -734 |  |  | -725 |  |  | -768 |  |  | -3534 |  |  | -3139
Restructuring and related charges |  |  | -9 |  |  | -9 |  |  | -10 |  |  | -6 |  |  | -13 |  |  | -8 |  |  | -11 |  |  | -11 |  |  | -34 |  |  | -43
Underwriting (loss) income |  | $ | -112 |  | $ | 701 |  | $ | 138 |  | $ | 526 |  | $ | 604 |  | $ | -297 |  | $ | -1498 |  | $ | 334 |  | $ | 1253 |  | $ | -857
Catastrophe losses |  | $ | 1061 |  | $ | 206 |  | $ | 819 |  | $ | 259 |  | $ | 66 |  | $ | 1077 |  | $ | 2339 |  | $ | 333 |  | $ | 2345 |  | $ | 3815
Operating ratios
Loss ratio |  |  | 74.69236471460341 |  |  | 63.48566308243727 |  |  | 72.12721272127213 |  |  | 65.3996983408748 |  |  | 63.5221078134464 |  |  | 79.61753731343283 |  |  | 98.37385782871303 |  |  | 69.34408435416344 |  |  | 68.94191569734825 |  |  | 77.6
Expense ratio |  |  | 26.96812453669385 |  |  | 26.04540023894862 |  |  | 25.8025802580258 |  |  | 26.66666666666667 |  |  | 27.43192004845548 |  |  | 25 |  |  | 24.82577048164782 |  |  | 25.47681811133509 |  |  | 26.37169465534652 |  |  | 25.7
Combined ratio |  |  | 101.6604892512972 |  |  | 89.5310633213859 |  |  | 97.92979297929793 |  |  | 92.06636500754148 |  |  | 90.85402786190187 |  |  | 104.6175373134328 |  |  | 123.1996283103608 |  |  | 94.82090246549852 |  |  | 95.31361035269477 |  |  | 103.2726852208773
Effect of catastrophe losses
on combined ratio |  |  | 15.7301704966642 |  |  | 3.076463560334528 |  |  | 12.28622862286229 |  |  | 3.906485671191553 |  |  | 0.9993943064809206 |  |  | 16.74440298507463 |  |  | 36.22425274895462 |  |  | 5.163591254458055 |  |  | 8.770617496353369 |  |  | 14.70588235294118
Effect of restructuring and related
charges on combined ratio |  |  | 0.1334321719792439 |  |  | 0.1344086021505377 |  |  | 0.15001500150015 |  |  | 0.1 |  |  | 0.196850393700787 |  |  | 0.124378109452736 |  |  | 0.170357751277683 |  |  | 0.2 |  |  | 0.1271646033586416 |  |  | 0.1657543751445532
Effect of business combination expenses and the
amortization of purchased intangible assets
on combined ratio |  |  | 0.4 |  |  | 0.4 |  |  | 0.4 |  |  | 0.7 |  |  | 0.7 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0.5 |  |  | 0.2
Discontinued Lines and Coverages
Underwriting Summary
Premiums written |  | $ | 1 |  | $ | -1 |  | $ | 0 |  | $ | 1 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | -1 |  | $ | 1 |  | $ | -1
Premiums earned |  | $ | -1 |  | $ | 1 |  | $ | 0 |  | $ | 0 |  | $ | 1 |  | $ | 0 |  | $ | 0 |  | $ | -1 |  | $ | 0 |  | $ | 0
Claims and claims expense |  |  | -4 |  |  | -42 |  |  | -2 |  |  | -3 |  |  | -3 |  |  | -11 |  |  | -3 |  |  | -4 |  |  | -51 |  |  | -21
Operating costs and expenses |  |  | 1 |  |  | -1 |  |  | -2 |  |  | 0 |  |  | -1 |  |  | -1 |  |  | -1 |  |  | -1 |  |  | -2 |  |  | -4
Underwriting loss |  | $ | -4 |  | $ | -42 |  | $ | -4 |  | $ | -3 |  | $ | -3 |  | $ | -12 |  | $ | -4 |  | $ | -6 |  | $ | -53 |  | $ | -25
Effect of Discontinued Lines and Coverages
on the Property-Liability combined ratio |  |  | 0 |  |  | 0.7 |  |  | 0.1 |  |  | 0 |  |  | 0 |  |  | 0.2 |  |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.1