Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 8

THE ALLSTATE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ 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
CASH FLOWS FROM OPERATING ACTIVITIES
 | Net income (loss) |  |  |  | $ | 394 |  | $ | 723 |  | $ | 423 |  | $ | 766 |  | $ | 712 |  | $ | 175 |  | $ | -624 |  | $ | 524 |  | $ | 2306 |  | $ | 787
 | Adjustments to reconcile net income (loss) to
 |  | net cash provided by operating activities:
 |  |  | Depreciation, amortization and
 |  |  | other non-cash items |  |  | 95 |  |  | 92 |  |  | 105 |  |  | 96 |  |  | 103 |  |  | 60 |  |  | 58 |  |  | 31 |  |  | 388 |  |  | 252
 |  |  | Realized capital gains and losses |  |  | -204 |  |  | 72 |  |  | -27 |  |  | -168 |  |  | -86 |  |  | -264 |  |  | -57 |  |  | -96 |  |  | -327 |  |  | -503
 |  |  | (Gain) loss on disposition of operations |  |  | -3 |  |  | -9 |  |  | -3 |  |  | -3 |  |  | -3 |  |  | -3 |  |  | -7 |  |  | 20 |  |  | -18 |  |  | 7
 |  |  | Interest credited to contractholder funds |  |  | 357 |  |  | 215 |  |  | 366 |  |  | 378 |  |  | 405 |  |  | 405 |  |  | 417 |  |  | 418 |  |  | 1316 |  |  | 1645
 |  |  | Changes in:
 |  |  |  | Policy benefits and other insurance reserves |  | 983 |  |  | -392 |  |  | -31 |  |  | -346 |  |  | -623 |  |  | -119 |  |  | 723 |  |  | -58 |  |  | 214 |  |  | -77
 |  |  |  | Unearned premiums |  | -115 |  |  | 394 |  |  | 207 |  |  | -180 |  |  | -183 |  |  | 307 |  |  | 161 |  |  | -248 |  |  | 306 |  |  | 37
 |  |  |  | Deferred policy acquisition costs |  | -31 |  |  | 7 |  |  | -46 |  |  | 52 |  |  | 48 |  |  | 69 |  |  | -7 |  |  | 67 |  |  | -18 |  |  | 177
 |  |  |  | Premium installment receivables, net |  | 53 |  |  | -169 |  |  | -28 |  |  | 19 |  |  | 191 |  |  | -136 |  |  | -25 |  |  | 3 |  |  | -125 |  |  | 33
 |  |  |  | Reinsurance recoverables, net |  | -1421 |  |  | -166 |  |  | -30 |  |  | 57 |  |  | -441 |  |  | -235 |  |  | 77 |  |  | -117 |  |  | -1560 |  |  | -716
 |  |  |  | Income taxes |  | 29 |  |  | 328 |  |  | 8 |  |  | 333 |  |  | 316 |  |  | 43 |  |  | -429 |  |  | 203 |  |  | 698 |  |  | 133
 |  |  |  | Other operating assets and liabilities |  | 299 |  |  | -251 |  |  | 23 |  |  | -197 |  |  | -181 |  |  | 109 |  |  | 247 |  |  | -21 |  |  | -126 |  |  | 154
 |  |  |  | Net cash provided by operating activities |  | 436 |  |  | 844 |  |  | 967 |  |  | 807 |  |  | 258 |  |  | 411 |  |  | 534 |  |  | 726 |  |  | 3054 |  |  | 1929
CASH FLOWS FROM INVESTING ACTIVITIES
 | Proceeds from sales
 |  |  | Fixed income securities |  |  | 4920 |  |  | 4034 |  |  | 4229 |  |  | 5689 |  |  | 5520 |  |  | 9776 |  |  | 5777 |  |  | 8363 |  |  | 18872 |  |  | 29436
 |  |  | Equity securities |  |  | 150 |  |  | 70 |  |  | 216 |  |  | 1059 |  |  | 896 |  |  | 262 |  |  | 212 |  |  | 642 |  |  | 1495 |  |  | 2012
 |  |  | Limited partnership interests |  |  | 331 |  |  | 271 |  |  | 393 |  |  | 403 |  |  | 238 |  |  | 427 |  |  | 222 |  |  | 113 |  |  | 1398 |  |  | 1000
 |  |  | Mortgage loans |  |  | 3 |  |  | 0 |  |  | 5 |  |  | 6 |  |  | 23 |  |  | 9 |  |  | 39 |  |  | 26 |  |  | 14 |  |  | 97
 |  |  | Other investments |  |  | 44 |  |  | 16 |  |  | 52 |  |  | 36 |  |  | 15 |  |  | 40 |  |  | 46 |  |  | 63 |  |  | 148 |  |  | 164
 | Investment collections
 |  |  | Fixed income securities |  |  | 1525 |  |  | 1751 |  |  | 1175 |  |  | 966 |  |  | 1087 |  |  | 1479 |  |  | 1184 |  |  | 1201 |  |  | 5417 |  |  | 4951
 |  |  | Mortgage loans |  |  | 382 |  |  | 224 |  |  | 288 |  |  | 170 |  |  | 143 |  |  | 183 |  |  | 220 |  |  | 88 |  |  | 1064 |  |  | 634
 |  |  | Other investments |  |  | 58 |  |  | 31 |  |  | 16 |  |  | 23 |  |  | 18 |  |  | 13 |  |  | 15 |  |  | 77 |  |  | 128 |  |  | 123
 | Investment purchases
 |  |  | Fixed income securities |  |  | -5849 |  |  | -4464 |  |  | -5337 |  |  | -7008 |  |  | -5996 |  |  | -7966 |  |  | -3727 |  |  | -10207 |  |  | -22658 |  |  | -27896
 |  |  | Equity securities |  |  | -286 |  |  | -95 |  |  | -162 |  |  | -128 |  |  | -758 |  |  | -285 |  |  | -637 |  |  | -144 |  |  | -671 |  |  | -1824
 |  |  | Limited partnership interests |  |  | -292 |  |  | -568 |  |  | -346 |  |  | -318 |  |  | -537 |  |  | -394 |  |  | -431 |  |  | -334 |  |  | -1524 |  |  | -1696
 |  |  | Mortgage loans |  |  | -53 |  |  | -205 |  |  | -51 |  |  | -216 |  |  | -345 |  |  | -360 |  |  | -510 |  |  | -26 |  |  | -525 |  |  | -1241
 |  |  | Other investments |  |  | -390 |  |  | -32 |  |  | -80 |  |  | -163 |  |  | -5 |  |  | -53 |  |  | -88 |  |  | -58 |  |  | -665 |  |  | -204
 | Change in short-term investments, net |  |  |  |  | 586 |  |  | -892 |  |  | -13 |  |  | -379 |  |  | 2118 |  |  | -1102 |  |  | -483 |  |  | 1649 |  |  | -698 |  |  | 2182
 | Change in other investments, net |  |  |  |  | 64 |  |  | 51 |  |  | -48 |  |  | -9 |  |  | -58 |  |  | -187 |  |  | -51 |  |  | -119 |  |  | 58 |  |  | -415
 | Purchases of property and equipment, net |  |  |  |  | -109 |  |  | -60 |  |  | -65 |  |  | -51 |  |  | -86 |  |  | -54 |  |  | -58 |  |  | -48 |  |  | -285 |  |  | -246
 | Disposition (acquisition) of operations, net of cash acquired |  |  |  |  | 0 |  |  | 13 |  |  | 1 |  |  | -1 |  |  | -917 |  |  | 2 |  |  | 0 |  |  | -1 |  |  | 13 |  |  | -916
 |  |  |  | Net cash provided by investing activities |  | 1084 |  |  | 145 |  |  | 273 |  |  | 79 |  |  | 1356 |  |  | 1790 |  |  | 1730 |  |  | 1285 |  |  | 1581 |  |  | 6161
CASH FLOWS FROM FINANCING ACTIVITIES
 | Proceeds from issuance of long-term debt |  |  |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 493 |  |  | 7 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 493 |  |  | 7
 | Repayment of long-term debt |  |  |  |  | -1 |  |  | 0 |  |  | -1 |  |  | -350 |  |  | -6 |  |  | 0 |  |  | -1 |  |  | 0 |  |  | -352 |  |  | -7
 | Contractholder fund deposits |  |  |  |  | 587 |  |  | 566 |  |  | 520 |  |  | 485 |  |  | 570 |  |  | 486 |  |  | 524 |  |  | 596 |  |  | 2158 |  |  | 2176
 | Contractholder fund withdrawals |  |  |  |  | -1581 |  |  | -1273 |  |  | -1366 |  |  | -1299 |  |  | -2241 |  |  | -1931 |  |  | -2386 |  |  | -2122 |  |  | -5519 |  |  | -8680
 | Dividends paid |  |  |  |  | -212 |  |  | -107 |  |  | -109 |  |  | -106 |  |  | -108 |  |  | -109 |  |  | -111 |  |  | -107 |  |  | -534 |  |  | -435
 | Treasury stock purchases |  |  |  |  | -184 |  |  | -146 |  |  | -274 |  |  | -309 |  |  | -95 |  |  | -314 |  |  | -239 |  |  | -305 |  |  | -913 |  |  | -953
 | Shares reissued under equity incentive plans, net |  |  |  |  | 25 |  |  | 34 |  |  | 11 |  |  | 15 |  |  | 1 |  |  | 1 |  |  | 8 |  |  | 9 |  |  | 85 |  |  | 19
 | Excess tax benefits on share-based payment arrangements |  |  |  |  | 3 |  |  | 3 |  |  | 5 |  |  | -1 |  |  | -1 |  |  | -1 |  |  | 0 |  |  | -3 |  |  | 10 |  |  | -5
 | Other |  |  |  |  | 7 |  |  | 5 |  |  | -32 |  |  | -13 |  |  | 9 |  |  | 0 |  |  | -7 |  |  | 0 |  |  | -33 |  |  | 2
 |  |  |  | Net cash used in financing activities |  | -1356 |  |  | -918 |  |  | -1246 |  |  | -1085 |  |  | -1864 |  |  | -1868 |  |  | -2212 |  |  | -1932 |  |  | -4605 |  |  | -7876
NET INCREASE (DECREASE) IN CASH |  |  |  |  |  | 164 |  |  | 71 |  |  | -6 |  |  | -199 |  |  | -250 |  |  | 333 |  |  | 52 |  |  | 79 |  |  | 30 |  |  | 214
CASH AT BEGINNING OF PERIOD |  |  |  |  |  | 642 |  |  | 571 |  |  | 577 |  |  | 776 |  |  | 1026 |  |  | 693 |  |  | 641 |  |  | 562 |  |  | 776 |  |  | 562
CASH AT END OF PERIOD |  |  |  |  | $ | 806 |  | $ | 642 |  | $ | 571 |  | $ | 577 |  | $ | 776 |  | $ | 1026 |  | $ | 693 |  | $ | 641 |  | $ | 806 |  | $ | 776