Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 47

THE ALLSTATE CORPORATION
UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE
($ in millions)
 |  |  | December 31, 2012 |  |  |  |  |  |  | September 30, 2012 |  |  |  |  |  |  | June 30, 2012
 |  |  | Unrealized net |  |  |  | Fair value |  |  | Unrealized net |  |  |  | Fair value |  |  | Unrealized net |  |  |  | Fair value
 |  |  | capital gains |  | Fair |  | as a percent of |  |  | capital gains |  | Fair |  | as a percent of |  |  | capital gains |  | Fair |  | as a percent of
 |  |  | and losses |  | value |  | amortized cost (1) |  |  | and losses |  | value |  | amortized cost (1) |  |  | and losses |  | value |  | amortized cost (1)
Fixed income securities
 | U.S. government and agencies | $ | 326 | $ | 4713 |  | 107.4310462730796 |  | $ | 371 | $ | 4772 |  | 108.429902294933 |  | $ | 374 | $ | 5246 |  | 107.6765188834154
 | Municipal |  | 930 |  | 13069 |  | 107.6612571051981 |  |  | 922 |  | 13970 |  | 107.0662170447578 |  |  | 805 |  | 13892 |  | 106.1511423550088
 | Corporate |  | 3594 |  | 48537 |  | 107.9967959415259 |  |  | 3810 |  | 48154 |  | 108.591917734079 |  |  | 3025 |  | 47254 |  | 106.839404010943
 | Foreign government |  | 227 |  | 2517 |  | 109.9126637554585 |  |  | 240 |  | 2255 |  | 111.9106699751861 |  |  | 227 |  | 2169 |  | 111.6889804325438
 | Asset-backed securities ("ABS") |  | 1 |  | 3624 |  | 100.0276014352746 |  |  | -30 |  | 3673 |  | 99.18984607075345 |  |  | -105 |  | 3949 |  | 97.40996546620622
 | Residential mortgage-backed securities ("RMBS") |  | 32 |  | 3032 |  | 101.0666666666667 |  |  | 4 |  | 3348 |  | 100.1196172248804 |  |  | -212 |  | 3675 |  | 94.54592230511963
 | Commercial mortgage-backed securities ("CMBS") |  | -12 |  | 1498 |  | 99.20529801324504 |  |  | -25 |  | 1530 |  | 98.39228295819936 |  |  | -115 |  | 1716 |  | 93.7192790824686
 | Redeemable preferred stock |  | 4 |  | 27 |  | 117.3913043478261 |  |  | 5 |  | 27 |  | 122.7272727272727 |  |  | 2 |  | 25 |  | 108.695652173913
 | Total fixed income securities |  | 5102 |  | 77017 |  | 107.0944865466175 |  |  | 5297 |  | 77729 |  | 107.3130660481555 |  |  | 4001 |  | 77926 |  | 105.4122421373013
Equity securities |  |  | 460 |  | 4037 |  | 112.8599384959463 |  |  | 447 |  | 3876 |  | 113.0358705161855 |  |  | 251 |  | 3681 |  | 107.3177842565598
Short-term investments |  |  | 0 |  | 2336 |  | 100 |  |  | 0 |  | 2825 |  | 100 |  |  | 0 |  | 1867 |  | 100
Derivatives |  |  | -22 |  | 133 |  | 85.80645161290322 |  |  | -19 |  | 251 |  | 92.96296296296296 |  |  | -16 |  | 187 |  | 92.11822660098522
EMA limited partnership interests (2) |  |  | 7 |  | n/a |  | n/a |  |  | 6 |  | n/a |  | n/a |  |  | 4 |  | n/a |  | n/a
Unrealized net capital gains and losses, pre-tax |  | $ | 5547 | $ | 83523 |  | 107.1137273007079 |  | $ | 5731 | $ | 84681 |  | 107.2590246991767 |  | $ | 4240 | $ | 83661 |  | 105.3386383953866
Amounts recognized for:
Insurance reserves (3) |  |  | -771 |  |  |  |  |  |  | -876 |  |  |  |  |  |  | -700
DAC and DSI (4) |  |  | -412 |  |  |  |  |  |  | -420 |  |  |  |  |  |  | -352
Amounts recognized |  |  | -1183 |  |  |  |  |  |  | -1296 |  |  |  |  |  |  | -1052
Deferred income taxes |  |  | -1530 |  |  |  |  |  |  | -1555 |  |  |  |  |  |  | -1118
Unrealized net capital gains and losses, after-tax |  | $ | 2834 |  |  |  |  |  | $ | 2880 |  |  |  |  |  | $ | 2070
 |  |  | March 31, 2012 |  |  |  |  |  |  | December 31, 2011 |  |  |  |  |  |  | September 30, 2011
 |  |  | Unrealized net |  |  |  | Fair value |  |  | Unrealized net |  |  |  | Fair value |  |  | Unrealized net |  |  |  | Fair value
 |  |  | capital gains |  | Fair |  | as a percent of |  |  | capital gains |  | Fair |  | as a percent of |  |  | capital gains |  | Fair |  | as a percent of
 |  |  | and losses |  | value |  | amortized cost (1) |  |  | and losses |  | value |  | amortized cost (1) |  |  | and losses |  | value |  | amortized cost (1)
Fixed income securities
 | U.S. government and agencies | $ | 282 | $ | 5541 |  | 105.3622361665716 |  | $ | 349 | $ | 6315 |  | 105.8498156218572 |  | $ | 337 | $ | 4346 |  | 108.4060863058119
 | Municipal |  | 644 |  | 13614 |  | 104.9653045489591 |  |  | 607 |  | 14241 |  | 104.4521050315388 |  |  | 554 |  | 14999 |  | 103.8352371062651
 | Corporate |  | 2512 |  | 46331 |  | 105.7326730413747 |  |  | 2364 |  | 43581 |  | 105.7354974889002 |  |  | 2194 |  | 44529 |  | 105.1824731309791
 | Foreign government |  | 195 |  | 1989 |  | 110.8695652173913 |  |  | 215 |  | 2081 |  | 111.5219721329046 |  |  | 192 |  | 2133 |  | 109.8918083462133
 | ABS |  | -130 |  | 4242 |  | 97.02653247941446 |  |  | -214 |  | 3966 |  | 94.88038277511961 |  |  | -204 |  | 3906 |  | 95.03649635036496
 | RMBS |  | -231 |  | 3728 |  | 94.1651932306138 |  |  | -411 |  | 4121 |  | 90.93115622241835 |  |  | -395 |  | 4632 |  | 92.14243087328427
 | CMBS |  | -111 |  | 1753 |  | 94.04506437768241 |  |  | -178 |  | 1784 |  | 90.927624872579 |  |  | -221 |  | 1824 |  | 89.19315403422982
 | Redeemable preferred stock |  | 2 |  | 25 |  | 108.695652173913 |  |  | 2 |  | 24 |  | 109.0909090909091 |  |  | 2 |  | 25 |  | 108.695652173913
 | Total fixed income securities |  | 3163 |  | 77223 |  | 104.2708614636781 |  |  | 2734 |  | 76113 |  | 103.7258616225351 |  |  | 2459 |  | 76394 |  | 103.3258943666734
Equity securities |  |  | 417 |  | 3847 |  | 112.1574344023324 |  |  | 160 |  | 4363 |  | 103.8068046633357 |  |  | -95 |  | 4157 |  | 97.76575729068674
Short-term investments |  |  | 0 |  | 1886 |  | 100 |  |  | 0 |  | 1291 |  | 100 |  |  | 0 |  | 3517 |  | 100
Derivatives |  |  | -21 |  | 273 |  | 92.85714285714286 |  |  | -17 |  | 168 |  | 90.8108108108108 |  |  | -15 |  | 244 |  | 94.20849420849422
EMA limited partnership interests (2) |  |  | 1 |  | n/a |  | n/a |  |  | 2 |  | n/a |  | n/a |  |  | 7 |  | n/a |  | n/a
Unrealized net capital gains and losses, pre-tax |  | $ | 3560 | $ | 83229 |  | 104.4684883706335 |  | $ | 2879 | $ | 81935 |  | 103.6417223234163 |  | $ | 2356 | $ | 84312 |  | 102.8747132607741
Amounts recognized for:
Insurance reserves (3) |  |  | -443 |  |  |  |  |  |  | -594 |  |  |  |  |  |  | -603
DAC and DSI (4) |  |  | -230 |  |  |  |  |  |  | -124 |  |  |  |  |  |  | -109
Amounts recognized |  |  | -673 |  |  |  |  |  |  | -718 |  |  |  |  |  |  | -712
Deferred income taxes |  |  | -1013 |  |  |  |  |  |  | -761 |  |  |  |  |  |  | -579
Unrealized net capital gains and losses, after-tax |  | $ | 1874 |  |  |  |  |  | $ | 1400 |  |  |  |  |  | $ | 1065
(1) | The comparison of percentages from period to period may be distorted by investment transactions such as sales, purchases and impairment write-downs.
(2) | Unrealized net capital gains and losses for limited partnership interest represent the Company's share of Equity Method of Accounting ("EMA") limited partnerships' other comprehensive income.  Fair value and amortized cost are not applicable.
(3) | The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency.  Although we evaluate premium deficiencies on the combined performance of our life insurance and immediate annuities with life contingencies, the adjustment primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.
(4) | The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.