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 5, 2014

THE ALLSTATE CORPORATION

(Exact name of registrant as specified in its 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:

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

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

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

[ ] 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 5, 2014, the registrant issued a press release announcing its financial results for the fourth quarter of 2013, 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 5, 2014

99.2                                                Fourth quarter 2013 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

FOR IMMEDIATE RELEASE

Allstate Reports Excellent 2013 Return on Equity and Policy Growth

NORTHBROOK, Ill., February 5, 2014 – The Allstate Corporation (NYSE: ALL) today reported financial results for the fourth quarter and full year 2013. The financial highlights were:

“Successful execution of our customer-focused strategy and proactive risk and return management led to strong results for the fourth quarter and the full year 2013,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. “We grew insurance policies in force in all three brands where we underwrite risk, reflecting differentiated value propositions, strong marketing, expanded distribution and a smaller decline in Allstate brand homeowners policies. Net income per diluted common share for 2013 increased 2.8% to $4.81 as losses from the pending sale of Lincoln Benefit Life and a substantial charge for debt refinancing were offset by higher operating income and the repurchase of 7.8% of our outstanding common shares. Operating income per diluted common share for the year increased 30% to $5.68 as we achieved our operating priorities, realized higher income from limited partnerships and benefited from lower catastrophes.

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“Operating return on equity was a strong 14.5% for the full year. This reflected continued good profitability in auto insurance, success in improving underlying returns in homeowners, low catastrophes and higher income from limited partnership investments. Our share repurchases and common dividends provided $2.20 billion of cash returns to shareholders during 2013, which represents 9.4% of the average market capitalization for the year. We are well positioned in 2014 to aggressively implement our differentiated strategy while delivering strong returns to shareholders,” Wilson said.

Financial Results: Fourth Quarter 2013

·                  Insurance premiums grew in the fourth quarter in all our brands. Allstate Protection net written premium increased 4.7% for the fourth quarter of 2013 compared to the year-ago quarter. Allstate brand policies increased 0.4% from the prior year quarter. Allstate Financial premiums and contract charges grew by 7.8% for the fourth quarter of 2013 over the same period of the prior year, including a 6.3% increase in underwritten products.

·                  Allstate’s fourth quarter 2013 net income available to common shareholders was $810 million, or $1.76 per diluted common share, compared to $394 million, or $0.81 per diluted common share in the fourth quarter of 2012.

·                  Operating income was $781 million, or $1.70 per diluted common share in the fourth quarter of 2013, compared to $289 million or $0.59 per diluted common share in the same period of 2012, which included $1.12 billion in pre-tax catastrophe losses related to Sandy. 2013 included previously announced settlement charges of $103 million, after-tax, related to the level of lump sum pension benefit payments made to retiring employees (“settlement charges”) in the quarter.

·                  The fourth quarter 2013 recorded property-liability combined ratio was 88.7, 13.0 points better than the prior year quarter due to significantly lower catastrophe losses. The underlying combined ratio of 87.5 for the fourth quarter slightly deteriorated by 0.8 points compared with the same period last year, reflecting continued investments in growth and increased incentive payouts to agencies and employees based on strong 2013 results.

·                  In the fourth quarter of 2013, Allstate Financial’s net income declined $47 million to $119 million due to the increase to the estimated loss on the pending sale of Lincoln Benefit Life Company (LBL) and lower realized capital gains, partly offset by growth in operating income. Operating income increased 11.1% to $160 million compared to the same quarter a year ago, benefiting from a strong increase in limited partnership income, higher benefit spread from life insurance products and lower expenses.

·                  Total net investment income was $1.03 billion in the fourth quarter of 2013, and included $202 million from limited partnership interests and $24 million related to prepayment fee income and litigation proceeds.

Financial Results: Full Year 2013

·                  Insurance premiums grew in 2013, reflecting continued positive momentum in serving unique consumer segments with differentiated offerings. Total Allstate Protection net written premium rose 4.2% to $28.16 billion for 2013, while Allstate Financial grew total premiums and contract charges by 5.0%, including a 5.5% increase in underwritten products compared to 2012.

·                 Net income available to common shareholders for 2013 was $2.26 billion, or $4.81 per diluted common share, compared to $2.31 billion, or $4.68 per diluted common share in 2012. Net income for the year includes a number of previously announced unusual after-tax items, including an estimated $521 million loss on the pending disposition of LBL; a $319 million loss on extinguishment of debt; $150 million in settlement charges and a $118 million curtailment gain arising from changes in other postretirement benefit offerings.

·                  Operating income for 2013 was $2.67 billion, or $5.68 per diluted common share, compared to $2.15 billion, or $4.36 per diluted common share in 2012, due in part to lower 2013 catastrophe losses partially offset by the $150 million in after-tax settlement charges.

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·                  Allstate’s property-liability business produced a 92.0 combined ratio for 2013, 3.5 points better than 2012. The underlying combined ratio of 87.3 was essentially equal to the prior year and better than the company’s full-year outlook range of 88 to 90. Our 2014 full-year outlook is an underlying combined ratio in the range of 87 to 89, reflecting continued growth across our brands, stable auto margins and the sustainability of homeowners margin improvement.

·                  Allstate Financial’s net income declined to $95 million in 2013 primarily due to the estimated loss on disposition related to the planned LBL sale. Operating income improved 11.2% to $588 million in 2013, driven primarily by decreased crediting rates, higher investment prepayment fee income and litigation proceeds, increased limited partnership income, lower expenses and profitable growth at Allstate Benefits, partially offset by reduced spread-based business in force and lower benefit spread on life insurance.

·                  Net investment income totaled $3.94 billion in 2013, and included $541 million from limited partnership interests and $139 million related to prepayment fee income and litigation proceeds.

Achieved All Five 2013 Operating Priorities

Grow Insurance Premiums.  Total Allstate Protection net written premium growth was driven by growth in all brands.

·                  In the Allstate brand, which serves consumers who prefer local advice from Allstate agencies and a wide range of products, net written premium increased in the fourth quarter by 3.9% compared to the prior year quarter, driven by growth in auto and homeowners average premium and auto policy counts. Allstate brand auto policy growth continued to improve, with policies in force 1.5% higher in the fourth quarter of 2013 than in the same period of 2012, driven by growth in new business and higher retention. Allstate brand homeowner policies were 2.2% lower in the fourth quarter of 2013 versus the same period of 2012, but the rate of decline has continued to diminish from previous quarters. The Allstate brand increased net written premium by 3.0% in 2013 compared to the prior year.

·                  Esurance, serving the self-directed consumer segment, continued to grow rapidly in the fourth quarter of 2013, with a 23.0% increase in net written premium and 26.7% increase in policies from the fourth quarter of 2012. For the full year, Esurance increased net written premium 27.9% compared to 2012.

·                  Encompass, which serves consumers who value local advice and a choice of brand, grew net written premium in the fourth quarter of 2013 by 6.1% compared with the same quarter of 2012, and policies rose 6.5% from the prior year quarter. Encompass grew net written premium by 8.4% in 2013 compared with 2012.

Maintain Auto Profitability.  The auto combined ratio continues to perform within the targeted range of profitability.

·                  Allstate brand auto recorded a fourth quarter 2013 combined ratio of 95.3 and an underlying combined ratio of 95.9, 1.9 points worse than the fourth quarter of 2012. The increase in the underlying combined ratio reflects higher underwriting expenses, primarily from increased incentive payouts, and loss cost inflation which outpaced average premium growth in the quarter. The Allstate brand recorded a 2013 auto combined ratio of 94.5 and an underlying auto combined ratio of 94.4.

·                  Esurance had higher auto losses, resulting in a fourth quarter 2013 auto combined ratio of 116.5 and an underlying auto combined ratio of 111.7. For the full year, Esurance had an auto combined ratio of 117.3 and an underlying combined ratio of 111.5.  The Esurance team continues to adjust pricing and underwriting to ensure growth generates long-term profitability.

·                  Encompass recorded a fourth quarter auto combined ratio of 105.2 and an underlying combined ratio of 110.3, which included the full-year impact of a state facility assessment worth approximately 3.5 points. Encompass 2013 recorded auto combined ratio was 104.0, with an underlying combined ratio of 108.0. The Encompass team is implementing pricing and underwriting changes to ensure it achieves desired returns.

Raise Returns in Homeowners and Annuity Businesses. The company continued its progress toward building a competitive advantage in homeowners and proactively managing its annuity book of business.

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·                  Allstate brand homeowners recorded a fourth quarter 2013 combined ratio of 66.6, a 27.3 point improvement from the prior year quarter, driven by lower catastrophes and higher average premium. The Allstate brand homeowners underlying combined ratio was 60.7, a 1.7 point improvement from the fourth quarter of 2012, as rate increases continued to benefit results and slightly higher severity was mostly offset by lower frequency. Allstate brand homeowners returns continued to improve in 2013 with a recorded combined ratio of 77.9 and an underlying combined ratio of 62.7.

·                  Annuity returns improved in 2013 due primarily to higher investment spread, but long-term returns remain challenged by continued low interest rates.

Proactively Manage Investments. Strong results in the current low interest rate environment were driven by limited partnership results.

·                  The portfolio yield in the fourth quarter was 4.8%, higher than both the fourth quarter of 2012 and third quarter of 2013, due primarily to strong limited partnership results. Total return for the fourth quarter was 1.1% with strong equity performance largely offset by lower fixed income returns. The total portfolio yield for the year was 4.6%, comparable to 2012. Total return for the year was 1.8%, primarily driven by low fixed income performance which was enhanced by strong equity returns.

·                  Net investment income from limited partnership interests increased 83.6% in the fourth quarter to $202 million compared with the same quarter in 2012, reflecting both favorable valuations and strong cash distributions. For the full year, limited partnership interests produced investment income of $541 million compared to $348 million in 2012. Higher equity method limited partnership income resulted from favorable equity and real estate valuations which increased the carrying value of the partnerships, while cost method limited partnerships experienced an increase in distributed earnings.

·                  Allstate’s consolidated investment portfolio totaled $81.16 billion at December 31, 2013 compared to $97.28 billion at December 31, 2012. The lower portfolio value reflects $11.98 billion of investments classified as held for sale due to the pending sale of LBL and a $2.85 billion decrease in net unrealized capital gains, primarily driven by an increase in interest rates since year-end 2012.

·                  We proactively reduced our exposure to interest rate risk in the property-liability portfolio over the past several quarters, resulting in decreased sensitivity to rising interest rates. While this strategy protects portfolio valuation, it lowers operating income.

·                  Allstate Financial’s portfolio yield has been less impacted by lower reinvestment rates, as its investment cash flows have largely been used to fund liability outflows.

Reduce Our Cost Structure. Allstate made progress in reducing its underlying cost structure throughout 2013. Employee and retiree benefit programs were restructured to provide more consistent benefits among employees and better align with current market practices. The property-liability expense ratio increased in the quarter when compared to the fourth quarter of the prior year, reflecting continued investments in growth and increased incentive payouts to both agencies and employees based on the full year’s strong results.

Proactive Capital Management

“Allstate’s strong capital position provides the flexibility to offer attractive cash returns to shareholders while taking advantage of growth opportunities,” said Steve Shebik, chief financial officer. “In 2013, we maintained our track record of providing significant cash returns to shareholders by returning $2.20 billion in cash through a combination of share repurchases and dividends. We improved our financial strength by repurchasing outstanding debt and issuing new lower-cost senior debt, hybrid debt and preferred stock. We had $2.56 billion in holding company deployable assets at year-end 2013.”

As of December 31, 2013, $139 million remained under the company’s authorized $2.00 billion share repurchase programs. The company repurchased 8.4 million common shares at a cost of $449 million in the fourth quarter, bringing the total for 2013 to 37.4 million common shares repurchased for $1.84 billion.

Book value per common share at year-end 2013 was $45.31, a 6.9% increase from year-end 2012 and a 4.2% increase from September 30, 2013, as the benefits of higher net income and lower common shares

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outstanding more than offset the impact of lower unrealized gains.

Statutory surplus at December 31, 2013 was an estimated $18.2 billion for the combined insurance operating companies, an increase of $1.0 billion from December 31, 2012. Property-liability statutory surplus was an estimated $15.2 billion of this total, with Allstate Financial companies accounting for the remainder. During 2013, Allstate Financial companies returned $774 million of capital.

Visit www.allstateinvestors.com to view additional information about Allstate’s results, including a webcast of its quarterly conference call and the presentation discussed on the call. The conference call will be held at 9 a.m. ET on Thursday, February 6.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate branded insurance products (auto, home, life and retirement) and services are offered through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via www.allstate.com, www.allstate.com/financial and 1-800 Allstate®, and are widely known through the slogan “You’re In Good Hands With 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