Spreadsheet: 07296c68-386c-439e-ae6d-c17a93d8cce3
Sheet: 20

THE ALLSTATE CORPORATION
ENCOMPASS BRAND PROFITABILITY MEASURES
($ in millions, except ratios)
 |  | 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 premiums written |  | $ | 278 |  | $ | 297 |  | $ | 289 |  | $ | 249 |  | $ | 257 |  | $ | 282 |  | $ | 273 |  | $ | 245 |  | $ | 1113 |  | $ | 1057
Net premiums earned
 | Standard auto | $ | 153 |  | $ | 152 |  | $ | 153 |  | $ | 151 |  | $ | 151 |  | $ | 154 |  | $ | 155 |  | $ | 160 |  | $ | 609 |  | $ | 620
 | Non-standard auto |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 0 |  |  | 2
 | Auto |  | 153 |  |  | 152 |  |  | 153 |  |  | 151 |  |  | 151 |  |  | 154 |  |  | 156 |  |  | 161 |  |  | 609 |  |  | 622
 | Homeowners |  | 98 |  |  | 96 |  |  | 93 |  |  | 92 |  |  | 92 |  |  | 91 |  |  | 91 |  |  | 91 |  |  | 379 |  |  | 365
 | Other personal lines |  | 24 |  |  | 23 |  |  | 23 |  |  | 23 |  |  | 22 |  |  | 23 |  |  | 23 |  |  | 23 |  |  | 93 |  |  | 91
 | Total |  | 275 |  |  | 271 |  |  | 269 |  |  | 266 |  |  | 265 |  |  | 268 |  |  | 270 |  |  | 275 |  |  | 1081 |  |  | 1078
Incurred losses
 | Standard auto | $ | 118 |  | $ | 121 |  | $ | 125 |  | $ | 118 |  | $ | 129 |  | $ | 135 |  | $ | 122 |  | $ | 121 |  | $ | 482 |  | $ | 507
 | Non-standard auto |  | -2 |  |  | -2 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | -4 |  |  | 3
 | Auto |  | 116 |  |  | 119 |  |  | 125 |  |  | 118 |  |  | 129 |  |  | 136 |  |  | 123 |  |  | 122 |  |  | 478 |  |  | 510
 | Homeowners |  | 121 |  |  | 56 |  |  | 62 |  |  | 51 |  |  | 56 |  |  | 109 |  |  | 98 |  |  | 60 |  |  | 290 |  |  | 323
 | Other personal lines |  | 20 |  |  | 13 |  |  | 10 |  |  | 20 |  |  | 22 |  |  | 15 |  |  | 24 |  |  | 15 |  |  | 63 |  |  | 76
 | Total |  | 257 |  |  | 188 |  |  | 197 |  |  | 189 |  |  | 207 |  | 0 | 260 |  |  | 245 |  |  | 197 |  |  | 831 |  |  | 909
Expenses
 | Standard auto | $ | 47 |  | $ | 45 |  | $ | 42 |  | $ | 43 |  | $ | 44 |  | $ | 44 |  | $ | 44 |  | $ | 45 |  | $ | 177 |  | $ | 177
 | Non-standard auto |  | 1 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1 |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 2
 | Auto |  | 48 |  |  | 45 |  |  | 42 |  |  | 43 |  |  | 44 |  |  | 45 |  |  | 44 |  |  | 46 |  |  | 178 |  |  | 179
 | Homeowners |  | 31 |  |  | 30 |  |  | 28 |  |  | 28 |  |  | 29 |  |  | 28 |  |  | 28 |  |  | 28 |  |  | 117 |  |  | 113
 | Other personal lines |  | 6 |  |  | 7 |  |  | 7 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 7 |  |  | 5 |  |  | 25 |  |  | 23
 | Total |  | 85 |  |  | 82 |  |  | 77 |  |  | 76 |  |  | 78 |  |  | 79 |  |  | 79 |  |  | 79 |  |  | 320 |  |  | 315
Underwriting income (loss)
 | Standard auto | $ | -12 |  | $ | -14 |  | $ | -14 |  | $ | -10 |  | $ | -22 |  | $ | -25 |  | $ | -11 |  | $ | -6 |  | $ | -50 |  | $ | -64
 | Non-standard auto |  | 1 |  |  | 2 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | -2 |  |  | 0 |  |  | -1 |  |  | 3 |  |  | -3
 | Auto |  | -11 |  |  | -12 |  |  | -14 |  |  | -10 |  |  | -22 |  |  | -27 |  |  | -11 |  |  | -7 |  |  | -47 |  |  | -67
 | Homeowners |  | -54 |  |  | 10 |  |  | 3 |  |  | 13 |  |  | 7 |  |  | -46 |  |  | -35 |  |  | 3 |  |  | -28 |  |  | -71
 | Other personal lines |  | -2 |  |  | 3 |  |  | 6 |  |  | -2 |  |  | -5 |  |  | 2 |  |  | -8 |  |  | 3 |  |  | 5 |  |  | -8
 | Total |  | -67 |  |  | 1 |  |  | -5 |  |  | 1 |  |  | -20 |  |  | -71 |  |  | -54 |  |  | -1 |  |  | -70 |  |  | -146
Loss ratio |  |  | 93.45454545454545 |  |  | 69.37269372693727 |  |  | 73.33420074349442 |  |  | 70.95263157894738 |  |  | 78.11320754716982 |  |  | 97.01492537313433 |  |  | 90.74074074074075 |  |  | 71.73636363636362 |  |  | 76.87326549491212 |  |  | 84.32282003710576
Expense ratio |  |  | 30.90909090909091 |  |  | 30.15830258302583 |  |  | 28.62453531598513 |  |  | 28.57142857142857 |  |  | 29.43396226415094 |  |  | 29.47761194029851 |  |  | 29.25925925925926 |  |  | 28.72727272727273 |  |  | 29.60222016651249 |  |  | 29.22077922077922
Combined ratio |  |  | 124.3636363636364 |  |  | 99.63099630996311 |  |  | 101.8587360594796 |  |  | 99.62406015037594 |  |  | 107.5471698113208 |  |  | 126.4925373134328 |  |  | 120 |  |  | 100.3636363636364 |  |  | 106.4754856614246 |  |  | 113.543599257885
Effect of catastrophe losses on combined ratio |  |  | 34.9 |  |  | 5.5 |  |  | 6.7 |  |  | 2.6 |  |  | 4.5 |  |  | 26.5 |  |  | 24.1 |  |  | 6.2 |  |  | 12.6 |  |  | 15.3
Effect of prior year reserve reestimates on combined ratio |  |  | -8.4 |  |  | -3.7 |  |  | -3.7 |  |  | -0.8 |  |  | 3.4 |  |  | 1.5 |  |  | -0.7 |  |  | 1.5 |  |  | -4.2 |  |  | 1.4
Effect of advertising expenses on combined ratio |  |  | 0.7 |  |  | 0 |  |  | 0.4 |  |  | 0.8 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0.4 |  |  | 0.5 |  |  | 0.1
Combined ratio excluding the effect of catastrophes
and prior year reserve reestimates ("underlying") |  |  | 97.06363636363636 |  |  | 93.4309963099631 |  |  | 96.95873605947955 |  |  | 96.62406015037594 |  |  | 99.64716981132075 |  |  | 98.49253731343283 |  |  | 96.30000000000001 |  |  | 93.06363636363636 |  |  | 95.9754856614246 |  |  | 96.84359925788497
 | Effect of catastrophe losses |  | 34.9 |  |  | 5.5 |  |  | 6.7 |  |  | 2.6 |  |  | 4.5 |  |  | 26.5 |  |  | 24.1 |  |  | 6.2 |  |  | 12.6 |  |  | 15.3
 | Effect of prior year non-catastrophe reserve reestimates |  | -7.6 |  |  | 0.7 |  |  | -1.8 |  |  | 0.4 |  |  | 3.4 |  |  | 1.5 |  |  | -0.4 |  |  | 1.1 |  |  | -2.1 |  |  | 1.4
Combined ratio |  |  | 124.3636363636364 |  |  | 99.63099630996311 |  |  | 101.8587360594796 |  |  | 99.62406015037594 |  |  | 107.5471698113208 |  |  | 126.4925373134328 |  |  | 120 |  |  | 100.3636363636364 |  |  | 106.4754856614246 |  |  | 113.543599257885