Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 38

ALLSTATE FINANCIAL
RETURN ON ATTRIBUTED EQUITY
($ in millions)
 |  |  | Twelve months ended
 |  |  |  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | March 31, |  |  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | March 31,
 |  |  |  | 2012 |  |  | 2012 |  |  | 2012 |  |  | 2012 |  |  | 2011 |  |  | 2011 |  |  | 2011 |  |  | 2011
Return on Attributed Equity
 | Numerator:
 |  | Net income (1) | $ | 541 |  | $ | 510 |  | $ | 571 |  | $ | 600 |  | $ | 590 |  | $ | 527 |  | $ | 417 |  | $ | 141
 | Denominator:
 |  | Beginning attributed equity (2) | $ | 7230 |  | $ | 7044 |  | $ | 6868 |  | $ | 6568 |  | $ | 6385 |  | $ | 6450 |  | $ | 5895 |  | $ | 5510
 |  | Ending attributed equity |  | 8446 |  |  | 8291 |  |  | 7737 |  |  | 7475 |  |  | 7230 |  |  | 7044 |  |  | 6868 |  |  | 6568
 |  | Average attributed equity (3) | $ | 7838 |  | $ | 7667.5 |  | $ | 7302.5 |  | $ | 7021.5 |  | $ | 6807.5 |  | $ | 6747 |  | $ | 6381.5 |  | $ | 6039
 |  | Return on attributed equity |  | 6.90227098749681 | % |  | 6.651450929246821 | % |  | 7.819239986306059 | % |  | 8.545182653279214 | % |  | 8.666911494674991 | % |  | 7.810878909144805 | % |  | 6.53451382903706 | % |  | 2.334823646299056 | %
Operating Income Return on Attributed Equity
 | Numerator:
 |  | Operating income (1) | $ | 529 |  | $ | 515 |  | $ | 547 |  | $ | 544 |  | $ | 507 |  | $ | 472 |  | $ | 447 |  | $ | 426
 | Denominator:
 |  | Beginning attributed equity (2) | $ | 7230 |  | $ | 7044 |  | $ | 6868 |  | $ | 6568 |  | $ | 6385 |  | $ | 6450 |  | $ | 5895 |  | $ | 5510
 |  | Unrealized net capital gains and losses |  | 842 |  |  | 776 |  |  | 792 |  |  | 656 |  |  | 548 |  |  | 685 |  |  | 183 |  |  | -316
 |  | Adjusted beginning attributed equity |  | 6388 |  |  | 6268 |  |  | 6076 |  |  | 5912 |  |  | 5837 |  |  | 5765 |  |  | 5712 |  |  | 5826
 |  | Ending attributed equity |  | 8446 |  |  | 8291 |  |  | 7737 |  |  | 7475 |  |  | 7230 |  |  | 7044 |  |  | 6868 |  |  | 6568
 |  | Unrealized net capital gains and losses |  | 1678 |  |  | 1666 |  |  | 1240 |  |  | 1073 |  |  | 842 |  |  | 776 |  |  | 792 |  |  | 656
 |  | Adjusted ending attributed equity |  | 6768 |  |  | 6625 |  |  | 6497 |  |  | 6402 |  |  | 6388 |  |  | 6268 |  |  | 6076 |  |  | 5912
 |  | Average adjusted attributed equity (3) | $ | 6578 |  | $ | 6446.5 |  | $ | 6286.5 |  | $ | 6157 |  | $ | 6112.5 |  | $ | 6016.5 |  | $ | 5894 |  | $ | 5869
 |  | Operating income return on attributed equity |  | 8.041958041958042 | % |  | 7.988831148685333 | % |  | 8.701185079137835 | % |  | 8.835471820691895 | % |  | 8.294478527607362 | % |  | 7.845092661846588 | % |  | 7.583983712249745 | % |  | 7.258476742204804 | %
(1) | Net income and operating income reflect a trailing twelve-month period.
(2) | Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company, the applicable equity for American Heritage Life Investment Corporation, and the equity for Allstate Bank. Allstate Bank's equity is zero beginning March 31, 2012.
(3) | Average attributed equity and average adjusted attributed equity are determined using a two-point average, with the beginning and ending attributed equity and adjusted attributed equity, respectively, for the twelve-month period as data points.