Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 49

THE ALLSTATE CORPORATION
PROPERTY-LIABILITY
NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX)
($ 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
NET INVESTMENT INCOME
 | Fixed income securities:
 | Tax-exempt |  | $ | 71 |  | $ | 81 |  | $ | 82 |  | $ | 87 |  | $ | 96 |  | $ | 100 |  | $ | 108 |  | $ | 111 |  | $ | 321 |  | $ | 415
 | Taxable |  |  | 188 |  |  | 194 |  |  | 192 |  |  | 178 |  |  | 170 |  |  | 176 |  |  | 180 |  |  | 169 |  |  | 752 |  |  | 695
 | Equity securities |  |  | 49 |  |  | 28 |  |  | 22 |  |  | 19 |  |  | 44 |  |  | 20 |  |  | 32 |  |  | 18 |  |  | 118 |  |  | 114
 | Mortgage loans |  |  | 5 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 4 |  |  | 3 |  |  | 1 |  |  | 0 |  |  | 21 |  |  | 8
 | Limited partnership interests (1) (2) |  |  | 68 |  |  | 11 |  |  | 68 |  |  | 41 |  |  | 12 |  |  | 15 |  |  | 7 |  |  | 5 |  |  | 188 |  |  | 39
 | Short-term |  |  | 2 |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | - |  |  | 1 |  |  | 4 |  |  | 3
 | Other |  |  | 5 |  |  | 4 |  |  | 3 |  |  | 2 |  |  | 1 |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 14 |  |  | 3
 | Subtotal |  |  | 388 |  |  | 323 |  |  | 373 |  |  | 334 |  |  | 328 |  |  | 315 |  |  | 329 |  |  | 305 |  |  | 1418 |  |  | 1277
 | Less:  Investment expense |  |  | -26 |  |  | -24 |  |  | -21 |  |  | -21 |  |  | -19 |  |  | -17 |  |  | -19 |  |  | -21 |  |  | -92 |  |  | -76
 | Net investment income |  | $ | 362 |  | $ | 299 |  | $ | 352 |  | $ | 313 |  | $ | 309 |  | $ | 298 |  | $ | 310 |  | $ | 284 |  | $ | 1326 |  | $ | 1201
 | Net investment income, after-tax |  | $ | 258 |  | $ | 220 |  | $ | 254 |  | $ | 232 |  | $ | 233 |  | $ | 225 |  | $ | 236 |  | $ | 219 |  | $ | 964 |  | $ | 913
PRE-TAX YIELDS (3)
 | Fixed income securities:
 | Tax-exempt |  |  | 3.9 | % |  | 4.2 | % |  | 4.4 | % |  | 4.6 | % |  | 4.6 | % |  | 4.6 | % |  | 4.9 | % |  | 4.8 | % |  | 4.3 | % |  | 4.8 | %
 | Equivalent yield for tax-exempt |  |  | 5.7 |  |  | 6.1 |  |  | 6.4 |  |  | 6.7 |  |  | 6.7 |  |  | 6.7 |  |  | 7.1 |  |  | 7 |  |  | 6.3 |  |  | 7
 | Taxable |  |  | 3.6 |  |  | 3.7 |  |  | 3.7 |  |  | 3.6 |  |  | 3.7 |  |  | 3.9 |  |  | 3.8 |  |  | 3.6 |  |  | 3.7 |  |  | 3.8
 | Equity securities |  |  | 6.1 |  |  | 3.3 |  |  | 2.7 |  |  | 2.1 |  |  | 4.3 |  |  | 1.9 |  |  | 3.3 |  |  | 1.9 |  |  | 3.5 |  |  | 2.8
 | Mortgage loans |  |  | 4.1 |  |  | 4.3 |  |  | 4.2 |  |  | 4.5 |  |  | 4.2 |  |  | 4.5 |  |  | 3.2 |  |  | 6.7 |  |  | 4.3 |  |  | 4
 | Limited partnership interests |  |  | 8.9 |  |  | 1.5 |  |  | 9.5 |  |  | 5.5 |  |  | 6.3 |  |  | 8.8 |  |  | 4.2 |  |  | 2.9 |  |  | 6.3 |  |  | 5.6
 | Total portfolio |  |  | 4.3 |  |  | 3.6 |  |  | 4.2 |  |  | 3.8 |  |  | 4 |  |  | 3.9 |  |  | 4 |  |  | 3.7 |  |  | 3.9 |  |  | 3.9
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY ASSET TYPE
 | Fixed income securities:
 | Tax-exempt |  | $ | 23 |  | $ | 8 |  | $ | -4 |  | $ | 25 |  | $ | 5 |  | $ | 30 |  | $ | -16 |  | $ | -13 |  | $ | 52 |  | $ | 6
 | Taxable |  |  | 98 |  |  | 1 |  |  | 15 |  |  | -5 |  |  | 28 |  |  | 119 |  |  | 9 |  |  | -29 |  |  | 109 |  |  | 127
 | Equity securities |  |  | 25 |  |  | -14 |  |  | 13 |  |  | 159 |  |  | 3 |  |  | -77 |  |  | -2 |  |  | 124 |  |  | 183 |  |  | 48
 | Limited partnership interests  (2) |  |  | 1 |  |  | 0 |  |  | 1 |  |  | 11 |  |  | 33 |  |  | -3 |  |  | 20 |  |  | 46 |  |  | 13 |  |  | 96
 | Derivatives and other |  |  | -4 |  |  | -11 |  |  | -6 |  |  | -1 |  |  | -57 |  |  | -45 |  |  | -19 |  |  | -71 |  |  | -22 |  |  | -192
 | Total |  | $ | 143 |  | $ | -16 |  | $ | 19 |  | $ | 189 |  | $ | 12 |  | $ | 24 |  | $ | -8 |  | $ | 57 |  | $ | 335 |  | $ | 85
REALIZED CAPITAL GAINS AND LOSSES
(PRE-TAX) BY TRANSACTION TYPE
 | Impairment write-downs |  | $ | -41 |  | $ | -31 |  | $ | -43 |  | $ | -19 |  | $ | -54 |  | $ | -105 |  | $ | -27 |  | $ | -64 |  | $ | -134 |  | $ | -250
 | Change in intent write-downs |  |  | 0 |  |  | -2 |  |  | -1 |  |  | -28 |  |  | -1 |  |  | -10 |  |  | -11 |  |  | -27 |  |  | -31 |  |  | -49
 | Net other-than-temporary impairment
 |  | losses recognized in earnings |  | -41 |  |  | -33 |  |  | -44 |  |  | -47 |  |  | -55 |  |  | -115 |  |  | -38 |  |  | -91 |  |  | -165 |  |  | -299
 | Sales |  |  | 187 |  |  | 27 |  |  | 60 |  |  | 237 |  |  | 82 |  |  | 186 |  |  | 29 |  |  | 172 |  |  | 511 |  |  | 469
 | Valuation of derivative instruments |  |  | -2 |  |  | 3 |  |  | 1 |  |  | 3 |  |  | -12 |  |  | -56 |  |  | -12 |  |  | 26 |  |  | 5 |  |  | -54
 | Settlements of derivative instruments |  |  | -1 |  |  | -13 |  |  | 2 |  |  | -4 |  |  | -36 |  |  | 11 |  |  | -7 |  |  | -95 |  |  | -16 |  |  | -127
 | EMA limited partnership income (2) |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 33 |  |  | -2 |  |  | 20 |  |  | 45 |  |  | 0 |  |  | 96
 | Total |  | $ | 143 |  | $ | -16 |  | $ | 19 |  | $ | 189 |  | $ | 12 |  | $ | 24 |  | $ | -8 |  | $ | 57 |  | $ | 335 |  | $ | 85
AVERAGE INVESTMENT BALANCES (in billions) (4) |  |  | $ | 36.3 |  | $ | 36.1 |  | $ | 35.8 |  | $ | 35.4 |  | $ | 34.9 |  | $ | 34.9 |  | $ | 35 |  | $ | 34.7 |  | $ | 35.9 |  | $ | 34.9
(1) | As of December 31, 2012, Property-Liability has commitments to invest in additional limited partnership interests totaling $1.13 billion.
(2) | Income from EMA limited partnerships is reported in net investment income in 2012 and realized capital gains and losses in 2011.
(3) | Pre-tax yields are calculated as annualized investment income (including dividend income in the case of equity securities) divided by the average of investment balances at the end of each quarter during the year.  Investment balances, for purposes of the pre-tax yield calculation, exclude unrealized capital gains and losses.  EMA limited partnership interests are included in the 2012 yields since their 2012 income is reported in net investment income.
(4) | Average investment balances for the quarter are calculated as the average of the current and prior quarter investment balances. Year-to-date average investment balances are calculated as the average of investment balances at the end of each quarter during the year.  For purposes of the average investment balances calculation, unrealized capital gains and losses are excluded.