Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 9

THE ALLSTATE CORPORATION
ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS
($ in millions)
 |  |  | Change in Deferred Policy Acquisition Costs
 |  |  | For the three months ended December 31, 2012
 |  |  |  |  |  |  |  |  |  |  |  |  | Amortization
 |  |  |  |  |  |  |  |  |  |  |  |  | relating to realized
 |  |  |  |  |  |  |  |  |  |  |  |  | capital gains and |  |  | Amortization
 |  |  |  |  |  |  |  |  |  |  |  |  | losses and |  |  | (acceleration) |  |  | Effect of
 |  |  |  | Beginning |  |  | Acquisition |  |  | Amortization |  |  | valuation changes on |  |  | deceleration |  |  | unrealized |  |  | Ending
 |  |  |  | balance |  |  | costs |  |  | before |  |  | embedded derivatives |  |  | for changes in |  |  | capital gains |  |  | balance
 |  |  |  | September 30, 2012 |  |  | deferred |  |  | adjustments (1) (2) |  |  | that are not hedged (2) |  |  | assumptions (2) |  |  | and losses |  |  | December 31, 2012
Property-Liability |  |  | $ | 1400 |  | $ | 866 |  | $ | -870 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 1396
Allstate Financial:
 | Traditional life and
 |  | accident and health |  | 654 |  |  | 44 |  |  | -27 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 671
 | Interest-sensitive life |  |  | 1504 |  |  | 59 |  |  | -41 |  |  | -6 |  |  | 0 |  |  | 13 |  |  | 1529
 | Fixed annuity |  |  | 20 |  |  | 7 |  |  | -3 |  |  | 0 |  |  | 0 |  |  | 1 |  |  | 25
 |  | Subtotal |  | 2178 |  |  | 110 |  |  | -71 |  |  | -6 |  |  | 0 |  |  | 14 |  |  | 2225
Consolidated |  |  | $ | 3578 |  | $ | 976 |  | $ | -941 |  | $ | -6 |  | $ | 0 |  | $ | 14 |  | $ | 3621
 |  |  | Change in Deferred Policy Acquisition Costs
 |  |  | For the three months ended December 31, 2011
 |  |  |  |  |  |  |  |  |  |  |  |  | Amortization
 |  |  |  |  |  |  |  |  |  |  |  |  | relating to realized
 |  |  |  |  |  |  |  |  |  |  |  |  | capital gains and |  |  | Amortization
 |  |  |  |  |  |  |  |  |  |  |  |  | losses and |  |  | (acceleration) |  |  | Effect of
 |  |  |  | Beginning |  |  | Acquisition |  |  | Amortization |  |  | valuation changes on |  |  | deceleration |  |  | unrealized |  |  | Ending
 |  |  |  | balance |  |  | costs |  |  | before |  |  | embedded derivatives |  |  | for changes in |  |  | capital gains |  |  | balance
 |  |  |  | September 30, 2011 |  |  | deferred |  |  | adjustments (1) (2) |  |  | that are not hedged (2) |  |  | assumptions (2) |  |  | and losses |  |  | December 31, 2011
Property-Liability |  |  | $ | 1342 |  | $ | 886 |  | $ | -880 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 1348
Allstate Financial:
 | Traditional life and
 |  | accident and health |  | 602 |  |  | 39 |  |  | -25 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 616
 | Interest-sensitive life |  |  | 1702 |  |  | 49 |  |  | -41 |  |  | -6 |  |  | 0 |  |  | -6 |  |  | 1698
 | Fixed annuity |  |  | 243 |  |  | 4 |  |  | -12 |  |  | -17 |  |  | 0 |  |  | -9 |  |  | 209
 |  | Subtotal |  | 2547 |  |  | 92 |  |  | -78 |  |  | -23 |  |  | 0 |  |  | -15 |  |  | 2523
Consolidated |  |  | $ | 3889 |  | $ | 978 |  | $ | -958 |  | $ | -23 |  | $ | 0 |  | $ | -15 |  | $ | 3871
(1) | Amortization before adjustments reflects total DAC amortization before amortization/accretion related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged and amortization acceleration/deceleration for changes in assumptions.
(2) | Included as a component of amortization of DAC on the Consolidated Statements of Operations.