UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) February 10, 2010

The Allstate Corporation

(Exact name of registrant as specified in charter)

Registrant’s telephone number, including area code (847) 402-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2. – Financial Information

Item 2.02.            Results of Operations and Financial Condition.

On February 10, 2010, the registrant issued a press release announcing its financial results for the fourth quarter of 2009, and the availability of the registrant’s fourth quarter investor supplement on the registrant’s web site. The press release and the investor supplement are furnished as Exhibits 99.1 and 99.2 to this report. The information contained in the press release and the investor supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.

Section 9. – Financial Statements and Exhibits

Item 9.01.              Financial Statements and Exhibits.

(d)  Exhibits

99.1            Registrant’s press release dated February 10, 2010

99.2            Fourth quarter 2009 Investor Supplement of The Allstate Corporation

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

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Exhibit 99.1

NEWS

FOR IMMEDIATE RELEASE

Allstate Reports Improved Fourth Quarter 2009 Results,

is Well Positioned for 2010

NORTHBROOK, Ill., February 10, 2010 – The Allstate Corporation (NYSE: ALL) today reported results for the fourth quarter of 2009:

NM = not meaningful

* Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are defined and reconciled to the most directly comparable GAAP measure and operating measures are defined in the “Definitions of Non-GAAP and Operating Measures” section of this document.

** As a result of the adoption of new earnings per share accounting guidance in the first quarter of 2009, prior periods have been restated.

“Our business results continue to improve and we made substantial progress on our three goals for 2009,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation.  “We successfully executed our first priority of keeping Allstate financially strong by achieving excellent underwriting margins and improving our capital position.  Our focus on the customer resulted in improvements in customer loyalty and enabled us to share that success with employees through a maximum contribution to the Allstate 401(k) Savings Plan. We also made progress in laying the foundation to reinvent protection and retirement for the consumer.”

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Consolidated Financial Results

Total revenues for the fourth quarter of 2009 were $8.1 billion, an increase of 22.7% compared to the fourth quarter of 2008.  This reflected lower realized capital losses, which decrease revenues, than the prior year quarter.  Partially offsetting this were decreases in net investment income of 19.0% and property-liability premiums of 2.3%.  Allstate’s fourth quarter 2009 net income was $518 million compared to a net loss of $1.1 billion in the fourth quarter of 2008 due to lower realized capital losses and improved operating income.  Operating income was $592 million in the fourth quarter of 2009 compared to $518 million in the same period of 2008, reflecting improved results in both Property-Liability and Allstate Financial.

Total 2009 revenues were $32.0 billion, an increase of 8.9% compared to 2008.  Net income totaled $854 million in 2009 compared to a net loss of $1.7 billion in 2008.  Revenue and net income increases during 2009 were due to lower realized capital losses.  Operating income increased 7.0% during 2009 to $1.9 billion due to an increase in the Property-Liability business, partly offset by lower operating income in Allstate Financial.

Property-Liability Combined Ratio Reflects Continued Strength in Auto

Allstate’s Property-Liability business produced a combined ratio of 93.2 in the fourth quarter of 2009 compared to 96.4 in the prior year quarter, resulting from continued margin strength in the auto business and actions taken to reduce expenses, partly offset by the impact of catastrophe losses on the homeowners business.  The underlying combined ratio was 88.1 for the year, in line with the outlook of 87 to 89 established at the beginning of 2009.  Management’s outlook for the 2010 underlying combined ratio is 88 to 90.

Allstate brand standard auto premiums written* for the fourth quarter of 2009 increased 0.7% compared to the prior year fourth quarter, with increases of 11.4% in new issued applications, 2.6% in average premium and 0.2 points in the renewal ratio, to 88.8.  Policies in force declined 1.0% versus the prior year quarter as improved sales and retention were offset by fewer policies available to renew.  The combined ratio was 93.7, a decline of 5.7 points from the fourth quarter of 2008, due to lower average claim costs and lower expenses partly offset by higher loss frequency.  Rate increases approved during the quarter averaged 5.5% in 15 states.

Allstate brand homeowners premiums written for the fourth quarter of 2009 increased 0.9% compared to the same period a year ago, as a 6.0% increase in average premium was partly offset by a 3.9% decline in policies in force.  The combined ratio was 89.0 in the fourth quarter of 2009 compared to 84.6 in the fourth quarter of 2008, reflecting higher catastrophe losses and non-catastrophe claim frequencies, partly offset by lower non-catastrophe claim severities.  Allstate continues to implement profit improvement actions in this business and also will benefit from rate increases averaging 6.5% in 22 states that were approved during the quarter.

Allstate had catastrophe losses of $328 million in the fourth quarter compared to $260 million in the fourth quarter of 2008.  Fourth quarter 2009 included catastrophe losses of $210 million from 13 events during the quarter and $148 million related to reestimates of events during the first nine months of 2009.

The Property-Liability expense ratio for the fourth quarter of 2009 was 24.9, a decline of 1.9 points compared to the prior year quarter, primarily resulting from a non-recurring write-off and benefit expense in 2008, partly offset by lower premiums earned.

Allstate Financial Makes Strong Progress on ‘Focus to Win’

Allstate remains focused on returning Allstate Financial to profitable growth through its Focus to Win restructuring program.  During 2009, actions included reducing expenses, shifting fixed costs to variable, and targeting higher product returns.  Expense savings initiatives during 2009 delivered approximately 90% of the target of $90 million in annual cost savings.

Pricing actions to produce higher returns and reduce concentrations in products with profits tied to investment performance contributed to a 25.8% decrease in premiums and deposits* in the fourth quarter of 2009 versus the same period of 2008.  Premiums and deposits on life products increased 7.2% during the fourth quarter of 2009 when compared to the prior year quarter.

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Allstate Financial’s operating income was $95 million in the fourth quarter of 2009.  This represented a 6.7% increase from $89 million in the fourth quarter of 2008, primarily due to lower amortization of deferred policy acquisition costs (DAC) and reduced operating expenses, partly offset by lower benefit and investment spreads.  The decline in DAC amortization was due to lower investment spreads and a lower amortization rate due to updated assumptions for fixed annuities.  Operating expenses decreased 26.6% to $105 million in the fourth quarter of 2009 from $143 million in the same period of 2008, in part reflecting substantial progress made through Focus to Win.  The benefit spread declined 30.1% from the prior year quarter to $100 million due to higher mortality experience and non-recurring benefit costs.  The investment spread declined 23.0% from the prior year quarter to $107 million due to lower net investment income, partly offset by lower interest credited on contractholder funds.

Allstate Financial’s net loss was $137 million in the fourth quarter of 2009, compared to a net loss of $1.0 billion in the same period of 2008.  The improvement related to lower realized net capital losses, after-tax, of $178 million, compared to $736 million in the prior year quarter, and the absence of $493 million of DAC charges incurred in 2008 comprising acceleration in DAC amortization and a non-recurring DAC charge.

Proactive Investment Strategies Provide both Protection and Returns

Throughout the year, Allstate’s investment portfolio benefited from proactive strategies to mitigate risk and optimize returns, including managing interest rate, equity, and credit exposures and reducing commercial real estate holdings.  Simultaneously, the company invested in opportunities to generate income and capital appreciation.  The fourth quarter of 2009 marked the fourth consecutive quarter of positive portfolio returns, as net investment income and valuation improvements were significantly greater than net realized capital losses.

The consolidated investment portfolio was $99.8 billion at December 31, 2009 a slight decline from September 30, 2009, as net reductions in Allstate Financial contractholder funds and a scheduled debt repayment more than offset operating cash flows.  The pre-tax unrealized net loss totaled $2.3 billion at December 31, 2009, a $180 million improvement from the prior quarter.

Net investment income for the fourth quarter of 2009 was $1.1 billion, consistent with the prior quarter, but $253 million less than the fourth quarter of 2008, primarily the result of lower yields and reduced average investment balances.  Net investment income in the Property-Liability portfolio totaled $324 million in the fourth quarter of 2009, a 16.3% decline from the prior year quarter, while Allstate Financial’s net investment income was $737 million, a 19.5% decline for the same period.

In the fourth quarter of 2009, the company deployed approximately $7.0 billion of short-term investments and cash receipts, for a total of $16.6 billion deployed during the last three quarters of 2009, primarily into fixed income and equity securities to generate income and capital appreciation.  The duration of the fixed income investment portfolio declined 5% to 4.0 years at December 31, 2009 when compared to year-end 2008.

Net realized capital losses for the quarter were $33 million, pre-tax, compared to a net realized loss of $1.9 billion in the prior year quarter.  The fourth quarter of 2009 reflected $270 million of impairment write-downs and $215 million of write-downs related to the intent to sell securities that primarily have commercial real estate exposure.  Net gains of $390 million were realized on sales that were primarily part of a change in equity strategy to a more passive portfolio management approach, and $56 million from derivatives, mainly related to the effects of rising interest rates upon liability hedges.

Risk mitigation programs continued to protect Allstate’s portfolios as macro hedges against interest rate and equity market risk performed as expected during the fourth quarter.  Commercial real estate exposure was reduced by 8.7% or $1.2 billion of amortized cost since September 30, 2009, and 30.3% or $5.4 billion of amortized cost since December 31, 2008, primarily through targeted dispositions and principal repayments from borrowers.  Exposure to certain municipal fixed income securities was also reduced by $445 million of amortized cost during the fourth quarter of 2009 and $1.9 billion of amortized cost, or 8.0%, since December 31, 2008.

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Allstate’s Capital Position Continues to Improve

“Our proactive approach to risk management and return optimization continues to serve us well.  We improved our investment portfolio mix and produced strong operating results that enabled us to end the year with a strong capital position,” said Don Civgin, senior vice president and chief financial officer.  “Our capital strength puts us in great shape to reinvest in our business to enhance growth and the customer experience.”

Statutory surplus at December 31, 2009 was an estimated $14.9 billion for Allstate Insurance Company, including $3.4 billion at Allstate Life Insurance Company.  This is compared to statutory surplus of $13.0 billion for Allstate Insurance Company at December 31, 2008.  Reflected in the 2009 balances is a capital contribution of $448 million from Allstate Insurance Company to Allstate Life Insurance Company that occurred during the fourth quarter.  There were $3.1 billion in assets available at the holding company level at the end of 2009 to cover the company’s relatively low annual fixed charges.

Book value per share was $30.84 at December 31, 2009 compared to $23.47 at December 31, 2008 and $32.29 at September 30, 2009.  The decline during the fourth quarter of 2009 was related to an increase in unrealized net capital loss, after adjusting for DAC and taxes.  The reduction in pre-tax unrealized net capital losses was more than offset by a decrease in the DAC adjustment due to updated assumptions for Allstate Financial fixed annuity investment performance.  The updated assumptions anticipate continued credit losses in certain asset classes within the portfolio in 2010 and 2011, primarily residential and commercial mortgage-backed securities.

Looking Forward

“We continued to build on the strength of our management team this year,” said Wilson.  “Mark LaNeve joined us as chief marketing officer.  Joe Lacher replaced George Ruebenson as president, Allstate Protection, after George retired following a highly successful 39 year career.  Matt Winter became president and chief executive officer of Allstate Financial to enable us to realize the strategic potential of this business.

“In 2010, we’ll deliver value to our shareholders by improving customer loyalty, reinventing protection and retirement for the consumer, and growing our businesses.”

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Visit www.allstateinvestors.com to view additional information about Allstate’s fourth quarter results, including a webcast of its quarterly conference call.  The conference call will be held at 9 a.m. ET on Thursday, February 11, 2010.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer.  Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate is reinventing protection and retirement to help more than 17 million households insure what they have today and better prepare for tomorrow.  Consumers access Allstate insurance products and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.

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THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

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THE ALLSTATE CORPORATION

SEGMENT RESULTS

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THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

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THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS