Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 13

THE ALLSTATE CORPORATION
HISTORICAL PROPERTY-LIABILITY RESULTS
($ in millions)
 |  |  |  | Twelve months ended December 31,
 |  |  |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008
Premiums written |  |  | $ | 27027 |  | $ | 25980 |  | $ | 25907 |  | $ | 25971 |  | $ | 26584
(Increase) decrease in unearned premium |  |  |  | -322 |  |  | -33 |  |  | 19 |  |  | 200 |  |  | 383
Other |  |  |  | 32 |  |  | -5 |  |  | 31 |  |  | 23 |  |  | 0
Premiums earned |  |  |  | 26737 |  |  | 25942 |  |  | 25957 |  |  | 26194 |  |  | 26967
Claims and claims expense |  |  |  | -18484 |  |  | -20161 |  |  | -18951 |  |  | -18746 |  |  | -20064
Amortization of deferred policy acquisition costs |  |  |  | -3483 |  |  | -3477 |  |  | -3517 |  |  | -3615 |  |  | -3796
Operating costs and expenses |  |  |  | -3536 |  |  | -3143 |  |  | -2962 |  |  | -2728 |  |  | -2919
Restructuring and related charges |  |  |  | -34 |  |  | -43 |  |  | -33 |  |  | -105 |  |  | -22
Underwriting income (loss) |  |  |  | 1200 |  |  | -882 |  |  | 494 |  |  | 1000 |  |  | 166
Net investment income |  |  |  | 1326 |  |  | 1201 |  |  | 1189 |  |  | 1328 |  |  | 1674
Periodic settlement and accruals on non-hedge
derivative instruments |  |  |  | -6 |  |  | -15 |  |  | -7 |  |  | -10 |  |  | 1
Business combination expenses and the amortization of purchased
intangible assets |  |  |  | 124 |  |  | 49 |  |  | 0 |  |  | 0 |  |  | 0
Income tax (expense) benefit on operations |  |  |  | -819 |  |  | 18 |  |  | -423 |  |  | -557 |  |  | -401
Operating income |  |  |  | 1825 |  |  | 371 |  |  | 1253 |  |  | 1761 |  |  | 1440
Realized capital gains and losses, after-tax |  |  |  | 221 |  |  | 54 |  |  | -207 |  |  | -222 |  |  | -1209
Reclassification of periodic settlements and accruals
on non-hedge derivative instruments, after-tax |  |  |  | 3 |  |  | 10 |  |  | 4 |  |  | 7 |  |  | -1
Business combination expenses and the amortization of purchased
intangible assets, after-tax |  |  |  | -81 |  |  | -32 |  |  | 0 |  |  | 0 |  |  | 0
Gain on disposition of operations, after-tax |  |  |  | 0 |  |  | 0 |  |  | 3 |  |  | 0 |  |  | 0
Net income |  |  | $ | 1968 |  | $ | 403 |  | $ | 1053 |  | $ | 1546 |  | $ | 230
Catastrophe losses |  |  | $ | 2345 |  | $ | 3815 |  | $ | 2207 |  | $ | 2069 |  | $ | 3342
Operating ratios
Loss ratio |  |  |  | 69.1 |  |  | 77.7 |  |  | 73 |  |  | 71.6 |  |  | 74.4
Expense ratio |  |  |  | 26.4 |  |  | 25.7 |  |  | 25.1 |  |  | 24.6 |  |  | 25
Combined ratio |  |  |  | 95.5 |  |  | 103.4 |  |  | 98.1 |  |  | 96.19999999999999 |  |  | 99.4
Combined ratio excluding the effect of catastrophes |  |  |  | 86.72938250364663 |  |  | 88.69411764705883 |  |  | 89.6 |  |  | 88.3 |  |  | 87
Effect of catastrophe losses on combined ratio |  |  |  | 8.770617496353369 |  |  | 14.70588235294118 |  |  | 8.5 |  |  | 7.9 |  |  | 12.4
Combined ratio |  |  |  | 95.5 |  |  | 103.4 |  |  | 98.1 |  |  | 96.2 |  |  | 99.4
Combined ratio excluding the effect of catastrophes, prior year
 | reserve reestimates, business combination expenses and
 | the amortization of purchased intangible assets ("underlying") |  |  | 87.22938250364663 |  |  | 89.30523475445224 |  |  | 89.6 |  |  | 88.1 |  |  | 86.8
Effect of catastrophe losses on combined ratio |  |  |  | 8.770617496353369 |  |  | 14.70588235294118 |  |  | 8.5 |  |  | 7.9 |  |  | 12.4
Effect of prior year reserve reestimates on combined ratio |  |  |  | -2.5 |  |  | -1.3 |  |  | -0.6 |  |  | -0.4 |  |  | 0.7
Effect of catastrophe losses included in prior year
 | reserve reestimate on combined ratio |  |  | 1.5 |  |  | 0.5 |  |  | 0.6 |  |  | 0.6 |  |  | -0.5
Effect of business combination expenses and the amortization
 | of purchased intangible assets on combined ratio |  |  | 0.5 |  |  | 0.1888828926065839 |  |  | 0 |  |  | 0 |  |  | 0
Combined ratio |  |  |  | 95.5 |  |  | 103.4 |  |  | 98.1 |  |  | 96.19999999999999 |  |  | 99.4
Effect of restructuring and related charges
on combined ratio |  |  |  | 0.1 |  |  | 0.2 |  |  | 0.1 |  |  | 0.4 |  |  | 0.1
Effect of Discontinued Lines and
Coverages on the combined ratio |  |  |  | 0.2 |  |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | 0.1