SEC Filing | The Allstate Corporation

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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): November 2, 2016

THE ALLSTATE CORPORATION

(Exact name of registrant as specified in its charter)



Delaware	1-11840	36-3871531
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)



2775 Sanders Road, Northbrook, Illinois	60062
(Address of principal executive offices)	(Zip Code)

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.

The Registrant’s press release dated November 2, 2016, announcing its financial results for the third quarter of 2016, and the Registrant’s third quarter 2016 investor supplement are furnished as Exhibits 99.1 and 99.2, respectively, 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 November 2, 2016

99.2 Third quarter 2016 Investor Supplement of The Allstate Corporation

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.



	THE ALLSTATE CORPORATION
	(Registrant)

	By:	/s/ Samuel H. Pilch
	Name: Samuel H. Pilch
	Title: Senior Group Vice President and Controller

Date: November 2, 2016

Exhibit

Exhibit 99.1

https://cdn.kscope.io/bef8fd98672f902697176e848f9056e3-earningsreleaseimagea05.jpg

FOR IMMEDIATE RELEASE

Contacts:

Greg Burns John Griek

Media Relations Investor Relations

(847) 402-5600 (847) 402-2800

Allstate Delivers Balanced Operating Results

Focus on Returns Evident in Auto and Homeowner Insurance Results

NORTHBROOK, Ill., November 2, 2016 – The Allstate Corporation (NYSE: ALL) today reported financial results for the third quarter of 2016. The financial highlights were:



The Allstate Corporation Consolidated Highlights
	Three months ended September 30,						Nine months ended September 30,
($ millions, except per share amounts and ratios)	2016		2015		% / pts Change		2016			2015			% / pts Change
Consolidated revenues	$	9,221	$	9,028	2.1		$	27,256		$	26,962		1.1
Net income applicable to common shareholders	491		621		(20.9	)	950			1,595			(40.4	)
per diluted common share	1.31		1.54		(14.9	)	2.51			3.87			(35.1	)
Operating income*	474		610		(22.3	)	1,031			1,488			(30.7	)
per diluted common share*	1.26		1.52		(17.1	)	2.72			3.61			(24.7	)
Return on common shareholders’ equity
Net income applicable to common shareholders							7.4		%	12.2		%	(4.8) pts
Operating income*							9.4		%	12.1		%	(2.7) pts
Book value per common share							51.48			47.54			8.3
Property-Liability combined ratio
Recorded	95.5		93.6		1.9 pts		98.2			95.8			2.4 pts
Underlying combined ratio* (excludes catastrophes, prior year reserve reestimates and amortization of purchased intangibles)	88.0		89.3		(1.3) pts		88.0			89.1			(1.1) pts
Catastrophe losses	481		270		78.1		2,269			1,361			66.7


*	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 in the “Definitions of Non-GAAP Measures” section of this document.

“Allstate proactively balances near-term operating results with long-term strategy to meet the needs of our stakeholders,” said Tom Wilson, chairman and chief executive officer of The Allstate Corporation. “Net income applicable to common shareholders was $491 million in the third quarter, reflecting strong profitability from homeowners insurance and an improvement in underlying auto insurance margins. Catastrophe losses increased by $211 million (78%) in the third quarter and $908 million (67%) for the first three quarters, which led to a $457 million decline in year-to-date operating income versus 2015. The property-liability underlying combined ratio of 88.0 for the first three quarters was at the favorable end of our annual outlook range of 88 - 90⁽¹⁾. Total return on the investment portfolio was 5.2% year-to-date, as higher bond valuations and solid returns from performance-based investments were partially offset by lower market yields.

“Results on our five operating priorities for 2016 also reflect a balanced approach to adapting to the external environment,” Wilson continued. “Overall policies in force declined reflecting auto price increases of 7.8% for the Allstate brand over the last twelve months, which impacted both new business and customer retention.

__________

⁽¹⁾ A reconciliation of this non-GAAP measure to the combined ratio, a GAAP measure, is not possible on a forward-looking basis because it is not possible to provide a reliable forecast of catastrophes, and prior year reserve reestimates are expected to be zero because reserves are determined based on our best estimate of ultimate loss reserves as of the reporting dates.

Providing a broad set of unique products through different distribution channels, including strong policy growth in Allstate Benefits, enabled us to offset a significant portion of the decline in Allstate brand auto policies. Despite auto insurance price increases, Allstate agency owners are effectively managing customer satisfaction by serving as trusted advisors to our customers. We made excellent progress on building capabilities to increase performance-based investments and expand Arity’s connected car platform. Our view that ‘corporations can do more’ is keeping our reputation with customers strong as we invest in our people and communities,” concluded Wilson.

Operating Results: Third Quarter 2016


•	Total revenue of $9.2 billion in the third quarter of 2016 increased by 2.1% compared to the prior year quarter.


◦	Property-liability insurance premiums increased 2.9%.


◦	Allstate Financial premiums and contract charges rose 6.1%.


◦	Net investment income was 7.3% lower.


◦	Realized capital gains of $33 million were flat.


•	Net income applicable to common shareholders in the third quarter was $491 million, or $1.31 per diluted share, compared to $621 million, or $1.54 per diluted share, in the third quarter of 2015. Operating income was $474 million in the third quarter of 2016, compared to $610 million in the third quarter of 2015.


•	Property-liability net income of $483 million was $46 million higher than the third quarter of 2015. Underwriting income* of $355 million was $136 million below the prior year quarter, driven by an increase in catastrophe losses and unfavorable prior year reserve reestimates in our Discontinued Lines and Coverages segment, partially offset by higher earned premium.


◦	The underlying combined ratio of 88.0 for the third quarter of 2016 was 1.3 points better than the third quarter of 2015, reflecting improved Allstate brand auto results.


◦	The auto profit improvement plan, which began in the second quarter of 2015, impacted results.


•	Auto insurance rate increases across all three underwriting brands are estimated at $1.2 billion of net written premium through the first three quarters of 2016 and $2.2 billion since March 31, 2015.


•	As expected, auto new business for all three underwriting brands declined by 24% through the third quarter of 2016.


•	The property-liability expense ratio declined by 0.8 points, to 25.0, through the first nine months of 2016 compared to the same time period in 2015.



Underwriting Results
	Three months ended September 30,								Nine months ended September 30,
($ millions, except ratios)	2016			2015			% / pts Change		2016			2015			% / pts Change
Property-Liability Results
Underwriting income (loss)	$	355		$	491		(27.7	)	$	414		$	948		(56.3	)
Auto	24			22			9.1		(44		)	(13		)	(238.5	)
Homeowners	395			465			(15.1	)	528			922			(42.7	)
Discontinued Lines and Coverages	(100		)	(49		)	(104.1	)	(104		)	(53		)	(96.2	)
Recorded combined ratio	95.5			93.6			1.9 pts		98.2			95.8			2.4 pts
Auto	99.6			99.6			—		100.3			100.1			0.2 pts
Homeowners	78.2			74.1			4.1 pts		90.3			82.7			7.6 pts
Underlying combined ratio	88.0			89.3			(1.3) pts		88.0			89.1			(1.1) pts
Auto	96.5			98.6			(2.1) pts		97.1			98.3			(1.2) pts
Homeowners	63.0			62.6			0.4 pts		61.5			63.3			(1.8) pts

Auto and homeowners results reflect Allstate Protection.

•

Allstate brand auto written premium growth of 4.1% in the third quarter of 2016 reflects a 7.7% increase in average premium, which more than offset a 2.5% decline in policies in force. The recorded combined ratio of 99.0 in the third quarter of 2016 was 0.2 points higher than the prior year quarter and was adversely impacted by 3.1 points of catastrophe losses. The underlying combined ratio in the third quarter of 2016 was 2.2 points better than the third quarter of 2015, as higher average premium more than offset increases in frequency and severity.

•

Allstate brand homeowners net written premium declined slightly in the third quarter of 2016 compared to the third quarter of 2015, as average premium increased by 2.0% while policies in force declined by 0.9%. The recorded combined ratio was adversely impacted by higher catastrophe losses compared to the third quarter of 2015, while the underlying combined ratio of 61.1 in the third quarter of 2016 continues to reflect strong underlying profitability. Losses from Hurricane Matthew, an October event, will be disclosed in our October catastrophe release, per our disclosure policy, if total catastrophes for the month exceed $150 million.

•

Esurance net written premium growth of 5.4% compared to the prior year quarter reflects a slight decline in policies in force, which was more than offset by a 6.4% increase in auto average premium. The recorded combined ratio of 109.8 was 3.3 points higher in the third quarter of 2016, primarily driven by higher catastrophe losses. The underlying loss ratio* was 75.7 in the third quarter compared to 73.5 in the prior year quarter, as increased auto frequency and severity more than offset higher average earned premium. The increase in the underlying loss ratio was mostly offset by a reduction in the expense ratio.


•	Encompass net written premium declined by 9.7% and policies in force were 12.6% lower in the third quarter of 2016 compared to the prior year quarter, reflecting the continued focus on improving returns in this business. Both the recorded combined ratio of 98.3 and underlying combined ratio of 89.3 improved in the third quarter of 2016 compared to the same period a year ago.


•	Allstate Financial net income was $80 million and operating income was $94 million in the third quarter of 2016. Operating income was $44 million lower than the prior year quarter, primarily due to lower limited partnership income and reduced interest income from the portfolio repositioning in our annuity business.


•	Net investment income of $748 million declined by $59 million in the third quarter of 2016 from the prior year. This decline reflects lower interest income on market-based investments, driven by the Allstate Financial annuity portfolio repositioning. Solid performance-based results were lower compared to a strong prior year quarter.


•	Net realized capital gains were $33 million in the third quarter of 2016, consistent with the prior year quarter. Net realized gains on sales totaled $121 million, primarily related to ongoing portfolio management. Impairment write-downs were $63 million, including $23 million related to energy investments.

•

Investments carrying value of $81.1 billion was $3.3 billion above carrying value of $77.8 billion at year-end 2015 and included an increase in unrealized net capital gains of $2.0 billion, primarily reflecting increased bond valuations. The portfolio is managed to deliver attractive risk adjusted returns over an intermediate time horizon with performance measured on a current and multiple-year basis.



Allstate Investment Highlights
	Three months ended September 30,								Nine months ended September 30,
($ millions, except ratios)	2016			2015			% / pts Change		2016			2015			% / pts Change
Investment Results
Net investment income	$	748		$	807		(7.3	)	$	2,241		$	2,446		(8.4	)
Realized capital gains and losses	33			33			—		(92		)	280			NM
Change in unrealized net capital gains, pre-tax	318			(854		)	NM		1,990			(1,719		)	NM
Total return on investment portfolio	1.3		%	—		%	1.3 pts		5.2		%	1.2		%	4.0 pts

NM = not meaningful

Proactive Capital Management

“Allstate returned $389 million to shareholders during the third quarter of 2016 through a combination of $124 million in common stock dividends and repurchasing $265 million outstanding shares,” said Steve Shebik, chief financial officer. “Share repurchases in the third quarter included $212 million related to the new $250 million accelerated share repurchase (ASR) agreement. As of September 30, 2016, there was $938 million remaining on the $1.5 billion authorization, which is expected to be completed by November 2017. Book value per diluted common share of $51.48 was 8.3% higher than the third quarter of 2015 and 2.9% greater than the second quarter of 2016. Operating income return on common shareholders’ equity was 9.4% as of September 30, 2016.”

Visit www.allstateinvestors.com to view additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be held at 9 a.m. ET on Thursday, August 4.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting approximately 16 million households from life’s uncertainties through auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brand names. Now celebrating its 85th anniversary as an insurer, Allstate is widely known through the slogan “You’re In Good Hands With Allstate^®.” Allstate agencies are in virtually every local community in America.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
	(unaudited)						(unaudited)
Revenues
Property-liability insurance premiums	$	7,869		$	7,650		$	23,406		$	22,625
Life and annuity premiums and contract charges	571			538			1,701			1,611
Net investment income	748			807			2,241			2,446
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(73		)	(186		)	(241		)	(286		)
OTTI losses reclassified to (from) other comprehensive income	—			12			8			20
Net OTTI losses recognized in earnings	(73		)	(174		)	(233		)	(266		)
Sales and other realized capital gains and losses	106			207			141			546
Total realized capital gains and losses	33			33			(92		)	280
	9,221			9,028			27,256			26,962

Costs and expenses
Property-liability insurance claims and claims expense	5,553			5,255			17,138			15,835
Life and annuity contract benefits	484			460			1,393			1,347
Interest credited to contractholder funds	183			194			558			578
Amortization of deferred policy acquisition costs	1,138			1,092			3,393			3,248
Operating costs and expenses	1,021			992			3,043			3,143
Restructuring and related charges	5			9			21			32
Interest expense	73			73			218			219
	8,457			8,075			25,764			24,402

Gain on disposition of operations	1			2			4			2

Income from operations before income tax expense	765			955			1,496			2,562

Income tax expense	245			305			459			880

Net income	520			650			1,037			1,682

Preferred stock dividends	29			29			87			87

Net income applicable to common shareholders	$	491		$	621		$	950		$	1,595

Earnings per common share:

Net income applicable to common shareholders per common share – Basic	$	1.32		$	1.56		$	2.54		$	3.92

Weighted average common shares – Basic	371.5			397.0			374.4			406.5

Net income applicable to common shareholders per common share – Diluted	$	1.31		$	1.54		$	2.51		$	3.87

Weighted average common shares – Diluted	375.9			402.1			378.9			412.4

Cash dividends declared per common share	$	0.33		$	0.30		$	0.99		$	0.90



THE ALLSTATE CORPORATION
BUSINESS RESULTS
($ in millions, except ratios)	Three months ended						Nine months ended
	September 30,						September 30,
	2016			2015			2016			2015
Property-Liability
Premiums written	$	8,311		$	8,137		$	23,877		$	23,320
Premiums earned	$	7,869		$	7,650		$	23,406		$	22,625
Claims and claims expense	(5,553		)	(5,255		)	(17,138		)	(15,835		)
Amortization of deferred policy acquisition costs	(1,068		)	(1,029		)	(3,181		)	(3,050		)
Operating costs and expenses	(888		)	(867		)	(2,653		)	(2,763		)
Restructuring and related charges	(5		)	(8		)	(20		)	(29		)
Underwriting income	355			491			414			948
Net investment income	310			307			928			957
Periodic settlements and accruals on non-hedge derivative instruments	(1		)	(1		)	(2		)	(2		)
Amortization of purchased intangible assets	9			12			27			37
Income tax expense on operations	(221		)	(259		)	(438		)	(637		)
Operating income	452			550			929			1,303
Realized capital gains and losses, after-tax	36			(104		)	(10		)	(55		)
Loss on disposition of operations, after-tax	—			(1		)	—			—
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	—			—			1			1
Amortization of purchased intangible assets, after-tax	(5		)	(8		)	(17		)	(24		)
Change in accounting for investments in qualified affordable housing projects, after-tax	—			—			—			(28		)
Net income applicable to common shareholders	$	483		$	437		$	903		$	1,197
Catastrophe losses	$	481		$	270		$	2,269		$	1,361
Operating ratios:
Claims and claims expense ratio	70.6			68.7			73.2			70.0
Expense ratio	24.9			24.9			25.0			25.8
Combined ratio	95.5			93.6			98.2			95.8
Effect of catastrophe losses on combined ratio	6.1			3.5			9.7			6.0
Effect of prior year reserve reestimates on combined ratio	1.3			0.6			0.5			0.5
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio	—			—			0.1			—
Effect of amortization of purchased intangible assets on combined ratio	0.1			0.2			0.1			0.2
Effect of Discontinued Lines and Coverages on combined ratio	1.3			0.7			0.4			0.2

Allstate Financial
Premiums and contract charges	$	571		$	538		$	1,701		$	1,611
Net investment income	427			491			1,281			1,464
Contract benefits	(484		)	(460		)	(1,393		)	(1,347		)
Interest credited to contractholder funds	(183		)	(191		)	(546		)	(574		)
Amortization of deferred policy acquisition costs	(68		)	(61		)	(207		)	(192		)
Operating costs and expenses	(126		)	(112		)	(370		)	(353		)
Restructuring and related charges	—			(1		)	(1		)	(3		)
Income tax expense on operations	(43		)	(66		)	(147		)	(195		)
Operating income	94			138			318			411
Realized capital gains and losses, after-tax	(14		)	125			(46		)	235
Valuation changes on embedded derivatives that are not hedged, after-tax	—			(2		)	(8		)	(3		)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(1		)	(1		)	(3		)	(3		)
Gain on disposition of operations, after-tax	1			2			3			1
Change in accounting for investments in qualified affordable housing projects, after-tax	—			—			—			(17		)
Net income applicable to common shareholders	$	80		$	262		$	264		$	624

Corporate and Other
Net investment income	$	11		$	9		$	32		$	25
Operating costs and expenses	(80		)	(86		)	(238		)	(246		)
Income tax benefit on operations	26			28			77			82
Preferred stock dividends	(29		)	(29		)	(87		)	(87		)
Operating loss	(72		)	(78		)	(216		)	(226		)
Realized capital gains and losses, after-tax	—			—			(1		)	—
Net loss applicable to common shareholders	$	(72	)	$	(78	)	$	(217	)	$	(226	)
Consolidated net income applicable to common shareholders	$	491		$	621		$	950		$	1,595



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in millions, except par value data)	September 30, 2016			December 31, 2015
Assets	(unaudited)
Investments:
Fixed income securities, at fair value (amortized cost $57,775 and $57,201)	$	60,306		$	57,948
Equity securities, at fair value (cost $4,800 and $4,806)	5,288			5,082
Mortgage loans	4,396			4,338
Limited partnership interests	5,588			4,874
Short-term, at fair value (amortized cost $1,863 and $2,122)	1,863			2,122
Other	3,663			3,394
Total investments	81,104			77,758
Cash	389			495
Premium installment receivables, net	5,799			5,544
Deferred policy acquisition costs	3,886			3,861
Reinsurance recoverables, net	8,922			8,518
Accrued investment income	567			569
Property and equipment, net	1,013			1,024
Goodwill	1,219			1,219
Other assets	2,169			2,010
Separate Accounts	3,469			3,658
Total assets	$	108,537		$	104,656
Liabilities
Reserve for property-liability insurance claims and claims expense	$	25,450		$	23,869
Reserve for life-contingent contract benefits	12,228			12,247
Contractholder funds	20,583			21,295
Unearned premiums	12,772			12,202
Claim payments outstanding	934			842
Deferred income taxes	935			90
Other liabilities and accrued expenses	6,122			5,304
Long-term debt	5,110			5,124
Separate Accounts	3,469			3,658
Total liabilities	87,603			84,631
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 72.2 thousand shares issued and outstanding, $1,805 aggregate liquidation preference	1,746			1,746
Common stock, $.01 par value, 900 million issued, 368 million and 381 million shares outstanding	9			9
Additional capital paid-in	3,237			3,245
Retained income	39,990			39,413
Deferred ESOP expense	(13		)	(13		)
Treasury stock, at cost (532 million and 519 million shares)	(24,537		)	(23,620		)
Accumulated other comprehensive income:
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	56			56
Other unrealized net capital gains and losses	1,902			608
Unrealized adjustment to DAC, DSI and insurance reserves	(141		)	(44		)
Total unrealized net capital gains and losses	1,817			620
Unrealized foreign currency translation adjustments	(48		)	(60		)
Unrecognized pension and other postretirement benefit cost	(1,267		)	(1,315		)
Total accumulated other comprehensive income (loss)	502			(755		)
Total shareholders’ equity	20,934			20,025
Total liabilities and shareholders’ equity	$	108,537		$	104,656



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)	Nine months ended September 30,
	2016			2015
Cash flows from operating activities	(unaudited)
Net income	$	1,037		$	1,682
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	285			275
Realized capital gains and losses	92			(280		)
Gain on disposition of operations	(4		)	(2		)
Interest credited to contractholder funds	558			578
Changes in:
Policy benefits and other insurance reserves	978			500
Unearned premiums	540			762
Deferred policy acquisition costs	(159		)	(219		)
Premium installment receivables, net	(236		)	(290		)
Reinsurance recoverables, net	(420		)	(133		)
Income taxes	30			(60		)
Other operating assets and liabilities	41			(127		)
Net cash provided by operating activities	2,742			2,686
Cash flows from investing activities
Proceeds from sales
Fixed income securities	19,132			22,796
Equity securities	4,069			2,688
Limited partnership interests	634			795
Mortgage loans	—			6
Other investments	206			178
Investment collections
Fixed income securities	3,430			3,248
Mortgage loans	403			305
Other investments	281			254
Investment purchases
Fixed income securities	(22,282		)	(22,928		)
Equity securities	(4,113		)	(3,238		)
Limited partnership interests	(1,128		)	(930		)
Mortgage loans	(460		)	(524		)
Other investments	(674		)	(743		)
Change in short-term investments, net	94			(577		)
Change in other investments, net	(60		)	(16		)
Purchases of property and equipment, net	(190		)	(219		)
Net cash (used in) provided by investing activities	(658		)	1,095
Cash flows from financing activities
Repayments of long-term debt	(16		)	(20		)
Contractholder fund deposits	785			784
Contractholder fund withdrawals	(1,537		)	(1,793		)
Dividends paid on common stock	(364		)	(365		)
Dividends paid on preferred stock	(87		)	(87		)
Treasury stock purchases	(1,154		)	(2,216		)
Shares reissued under equity incentive plans, net	123			121
Excess tax benefits on share-based payment arrangements	25			44
Other	35			(1		)
Net cash used in financing activities	(2,190		)	(3,533		)
Net (decrease) increase in cash	(106		)	248
Cash at beginning of period	495			657
Cash at end of period	$	389		$	905

The following table presents the investment portfolio by strategy as of September 30, 2016.



($ in millions)	Total		Market-Based Core		Market-Based Active		Performance-Based Long-Term		Performance-Based Opportunistic
Fixed income securities	$	60,306	$	52,452	$	7,769	$	69	$	16
Equity securities	5,288		4,297		897		94		—
Mortgage loans	4,396		4,396		—		—		—
Limited partnership interests	5,588		448		—		5,137		3
Short-term investments	1,863		1,575		288		—		—
Other	3,663		2,980		152		520		11
Total	$	81,104	$	66,148	$	9,106	$	5,820	$	30

Property-Liability	$	41,057	$	30,015	$	7,929	$	3,093	$	20
Allstate Financial	37,516		33,602		1,177		2,727		10
Corporate & Other	2,531		2,531		—		—		—
Total	$	81,104	$	66,148	$	9,106	$	5,820	$	30

The following table presents investment income by investment strategy for the three months and nine months ended September 30.



	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2016			2015			2016			2015
Market-Based Core	$	577		$	612		$	1,753		$	1,881
Market-Based Active	66			52			194			154
Performance-Based Long-Term	147			176			416			515
Performance-Based Opportunistic	—			2			5			7
Investment income, before expense	790			842			2,368			2,557
Investment expense	(42		)	(35		)	(127		)	(111		)
Net investment income	$	748		$	807		$	2,241		$	2,446

The following table presents investment income by investment type and strategy for the three months and nine months ended September 30, 2016.



($ in millions)	Total			Market-Based Core		Market-Based Active		Performance-Based Long-Term		Performance-Based Opportunistic
Three months ended September 30, 2016
Fixed income securities	$	508		$	452	$	55	$	1	$	—
Equity securities	31			24		7		—		—
Mortgage loans	56			56		—		—		—
Limited partnership interests	136			1		—		135		—
Short-term investments	4			3		1		—		—
Other	55			41		3		11		—
Investment income, before expense	790			$	577	$	66	$	147	$	—
Investment expense	(42		)
Net investment income	$	748

Property-Liability	$	333		$	200	$	57	$	76	$	—
Allstate Financial	445			365		9		71		—
Corporate & Other	12			12		—		—		—
Investment income, before expense	$	790		$	577	$	66	$	147	$	—

Nine months ended September 30, 2016
Fixed income securities	$	1,546		$	1,374	$	165	$	3	$	4
Equity securities	103			85		18		—		—
Mortgage loans	162			162		—		—		—
Limited partnership interests	383			1		—		382		—
Short-term investments	11			8		3		—		—
Other	163			123		8		31		1
Investment income, before expense	2,368			$	1,753	$	194	$	416	$	5
Investment expense	(127		)
Net investment income	$	2,241

Property-Liability	$	997		$	617	$	169	$	208	$	3
Allstate Financial	1,334			1,099		25		208		2
Corporate & Other	37			37		—		—		—
Investment income, before expense	$	2,368		$	1,753	$	194	$	416	$	5

Definitions of Non-GAAP Measures

We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Operating income is net income applicable to common shareholders, excluding:


•	realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in operating income,


•	valuation changes on embedded derivatives that are not hedged, after-tax,


•	amortization of deferred policy acquisition costs (DAC) and deferred sales inducements (DSI), to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives that are not hedged, after-tax,


•	amortization of purchased intangible assets, after-tax,


•	gain (loss) on disposition of operations, after-tax, and


•	adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years.

Net income applicable to common shareholders is the GAAP measure that is most directly comparable to operating income.

We use operating income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, valuation changes on embedded derivatives that are not hedged, amortization of purchased intangible assets, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items. Realized capital gains and losses, valuation changes on embedded derivatives that are not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Consistent with our intent to protect results or earn additional income, operating income includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes. These instruments are used for economic hedges and to replicate fixed income securities, and by including them in operating income, we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments. Amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, operating income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine operating income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Operating income is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of operating income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, operating income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses operating income as the denominator. Operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business.

The following tables reconcile operating income and net income applicable to common shareholders. Taxes on adjustments to reconcile operating income and net income applicable to common shareholders generally use a 35% effective tax rate and are reported net with the reconciling adjustment. If the effective tax rate is other than 35%, this is specified in the disclosure.



($ in millions, except per share data)	For the three months ended September 30,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2016			2015			2016			2015			2016			2015			2016			2015
Operating income	$	452		$	550		$	94		$	138		$	474		$	610		$	1.26		$	1.52
Realized capital gains and losses, after-tax	36			(104		)	(14		)	125			22			21			0.06			0.05
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			—			(2		)	—			(2		)	—			(0.01		)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	—			—			(1		)	(1		)	(1		)	(1		)	—			—
Amortization of purchased intangible assets, after-tax	(5		)	(8		)	—			—			(5		)	(8		)	(0.01		)	(0.02		)
(Loss) gain on disposition of operations, after-tax	—			(1		)	1			2			1			1			—			—
Net income applicable to common shareholders	$	483		$	437		$	80		$	262		$	491		$	621		$	1.31		$	1.54

	For the nine months ended September 30,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2016			2015			2016			2015			2016			2015			2016			2015
Operating income	$	929		$	1,303		$	318		$	411		$	1,031		$	1,488		$	2.72		$	3.61
Realized capital gains and losses, after-tax	(10		)	(55		)	(46		)	235			(57		)	180			(0.15		)	0.44
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			(8		)	(3		)	(8		)	(3		)	(0.02		)	(0.01		)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	—			—			(3		)	(3		)	(3		)	(3		)	(0.01		)	(0.01		)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	1			1			—			—			1			1			—			—
Amortization of purchased intangible assets, after-tax	(17		)	(24		)	—			—			(17		)	(24		)	(0.04		)	(0.05		)
Gain on disposition of operations, after-tax	—			—			3			1			3			1			0.01			—
Change in accounting for investments in qualified affordable housing projects, after-tax (all tax)	—			(28		)	—			(17		)	—			(45		)	—			(0.11		)
Net income applicable to common shareholders	$	903		$	1,197		$	264		$	624		$	950		$	1,595		$	2.51		$	3.87

Operating income return on common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month operating income by the average of common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on common shareholders’ equity is the most directly comparable GAAP measure. We use operating income as the numerator for the same reasons we use operating income, as discussed above. We use average common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily attributable to the company’s earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income applicable to common shareholders and return on common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine operating income return on common shareholders’ equity from return on common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of operating income return on common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have operating income return on common shareholders’ equity and return on common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Operating income return on common shareholders’ equity should not be considered a substitute for return on common shareholders’ equity and does not reflect the overall profitability of our business.

The following tables reconcile return on common shareholders’ equity and operating income return on common shareholders’ equity.



($ in millions)	For the twelve months ended September 30,
	2016			2015
Return on common shareholders’ equity
Numerator:
Net income applicable to common shareholders	$	1,410		$	2,390
Denominator:
Beginning common shareholders’ equity ⁽¹⁾	$	18,758		$	20,583
Ending common shareholders’ equity ⁽¹⁾	19,188			18,758
Average common shareholders’ equity	$	18,973		$	19,671
Return on common shareholders’ equity	7.4		%	12.2		%



	For the twelve months ended September 30,
	2016			2015
Operating income return on common shareholders’ equity
Numerator:
Operating income	$	1,656		$	2,224

Denominator:
Beginning common shareholders’ equity	$	18,758		$	20,583
Unrealized net capital gains and losses	879			1,827
Adjusted beginning common shareholders’ equity	17,879			18,756

Ending common shareholders’ equity	19,188			18,758
Unrealized net capital gains and losses	1,817			879
Adjusted ending common shareholders’ equity	17,371			17,879
Average adjusted common shareholders’ equity	$	17,625		$	18,318
Operating income return on common shareholders’ equity	9.4		%	12.1		%

_____________

⁽¹⁾ Excludes equity related to preferred stock of $1,746 million.

Underwriting income is calculated as premiums earned, less claims and claims expense (“losses”), amortization of DAC, operating costs and expenses and restructuring and related charges as determined using GAAP. Management uses this measure in its evaluation of the results of operations to analyze the profitability of our Property-Liability insurance operations separately from investment results. It is also an integral component of incentive compensation. It is useful for investors to evaluate the components of income separately and in the aggregate when reviewing performance. Net income applicable to common shareholders is the most directly comparable GAAP measure. Underwriting income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of Property-Liability underwriting income to net income applicable to common shareholders is provided in the “Business Results” page.

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization of purchased intangible assets (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio, and the effect of amortization of purchased intangible assets on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization of purchased intangible assets. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. Amortization of purchased intangible assets relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

The following tables reconcile the respective underlying combined ratio to the combined ratio.



Property-Liability	Three months ended September 30,		Nine months ended September 30,
	2016	2015	2016	2015
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization of purchased intangible assets (“underlying combined ratio”)	88.0	89.3	88.0	89.1
Effect of catastrophe losses	6.1	3.5	9.7	6.0
Effect of prior year non-catastrophe reserve reestimates	1.3	0.6	0.4	0.5
Effect of amortization of purchased intangible assets	0.1	0.2	0.1	0.2
Combined ratio	95.5	93.6	98.2	95.8

Effect of prior year catastrophe reserve reestimates	—	—	0.1	—

Underwriting margin is calculated as 100% minus the combined ratio.



Allstate Protection Auto Insurance	Three months ended September 30,			Nine months ended September 30,
	2016		2015	2016		2015
Underlying combined ratio	96.5		98.6	97.1		98.3
Effect of catastrophe losses	3.1		0.5	3.2		1.3
Effect of prior year non-catastrophe reserve reestimates	(0.1	)	0.3	(0.2	)	0.3
Effect of amortization of purchased intangible assets	0.1		0.2	0.2		0.2
Combined ratio	99.6		99.6	100.3		100.1

Effect of prior year catastrophe reserve reestimates	(0.1	)	—	(0.1	)	—



Allstate Protection Homeowners Insurance	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Underlying combined ratio	63.0		62.6		61.5		63.3
Effect of catastrophe losses	15.7		12.4		29.0		19.7
Effect of prior year non-catastrophe reserve reestimates	(0.5	)	(0.9	)	(0.2	)	(0.3	)
Combined ratio	78.2		74.1		90.3		82.7

Effect of prior year catastrophe reserve reestimates	0.3		0.1		0.3		0.1



Allstate Brand - Total	Three months ended September 30,			Nine months ended September 30,
	2016	2015		2016	2015
Underlying combined ratio	86.9	88.3		86.9	87.8
Effect of catastrophe losses	6.2	3.6		10.0	6.1
Effect of prior year non-catastrophe reserve reestimates	—	(0.1	)	—	0.3
Combined ratio	93.1	91.8		96.9	94.2

Effect of prior year catastrophe reserve reestimates	—	(0.1	)	0.1	—



Allstate Brand - Auto Insurance	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Underlying combined ratio	95.9		98.1		96.5		97.2
Effect of catastrophe losses	3.1		0.5		3.4		1.3
Effect of prior year non-catastrophe reserve reestimates	—		0.2		(0.2	)	0.5
Combined ratio	99.0		98.8		99.7		99.0

Effect of prior year catastrophe reserve reestimates	(0.1	)	(0.1	)	—		(0.1	)



Allstate Brand - Homeowners Insurance	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Underlying combined ratio	61.1		60.9		59.7		62.0
Effect of catastrophe losses	15.4		12.4		29.3		19.5
Effect of prior year non-catastrophe reserve reestimates	(0.6	)	(0.8	)	(0.3	)	(0.4	)
Combined ratio	75.9		72.5		88.7		81.1

Effect of prior year catastrophe reserve reestimates	0.3		(0.1	)	0.4		0.2



Allstate Brand - Other Personal Lines	Three months ended September 30,			Nine months ended September 30,
	2016		2015	2016		2015
Underlying combined ratio	82.0		82.1	79.1		81.1
Effect of catastrophe losses	6.0		4.5	12.5		8.0
Effect of prior year non-catastrophe reserve reestimates	(0.5	)	1.8	(1.2	)	0.8
Combined ratio	87.5		88.4	90.4		89.9

Effect of prior year catastrophe reserve reestimates	(0.3	)	—	(0.1	)	—



Encompass Brand - Total	Three months ended September 30,		Nine months ended September 30,
	2016	2015	2016	2015
Underlying combined ratio	89.3	90.9	90.1	92.7
Effect of catastrophe losses	9.0	5.3	11.2	10.0
Effect of prior year non-catastrophe reserve reestimates	—	5.1	1.8	1.5
Combined ratio	98.3	101.3	103.1	104.2

Effect of prior year catastrophe reserve reestimates	0.3	0.3	—	(0.1	)

Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business.

The following table reconciles the Esurance brand underlying loss ratio and underlying combined ratio to the Esurance brand combined ratio.



Esurance Brand - Total	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Underlying loss ratio	75.7		73.5		74.4		75.3
Expense ratio, excluding the effect of amortization of purchased intangible assets	30.3		31.8		30.9		34.1
Underlying combined ratio	106.0		105.3		105.3		109.4
Effect of catastrophe losses	3.3		0.8		2.5		0.9
Effect of prior year non-catastrophe reserve reestimates	(1.0	)	(1.6	)	(1.0	)	(1.1	)
Effect of amortization of purchased intangible assets	1.5		2.0		1.5		2.2
Combined ratio	109.8		106.5		108.3		111.4

# # # # #

allcorp93016investorsupp

Exhibit 99.2 Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they appear. These measures are defined on the page "Definitions of Non-GAAP Measures" and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein. THE ALLSTATE CORPORATION Investor Supplement Third Quarter 2016 The consolidated financial statements and financial exhibits included herein are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto included in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

PAGE Consolidated Statements of Operations 1 Contribution to Income 2 Revenues 3 Statements of Financial Position 4 Book Value Per Common Share 5 Return on Common Shareholders' Equity 6 Debt to Capital 7 Statements of Cash Flows 8 Analysis of Deferred Policy Acquisition Costs 9,10 Property-Liability Operations Property-Liability Results 11 Property-Liability Underwriting Results by Area of Business 12 Property-Liability Premiums Written by Brand 13 Impact of Net Rate Changes Approved on Premiums Written 14 Policies in Force and Other Statistics 15 Allstate Brand Profitability Measures 16 Allstate Brand Statistics 17 Allstate Brand Auto Claim Frequency Analysis 18-20 Esurance Brand Profitability Measures and Statistics 21 Encompass Brand Profitability Measures and Statistics 22 Auto Profitability Measures 23 Homeowners Profitability Measures 24 Other Personal Lines Profitability Measures 25 Commercial Lines Profitability Measures 26 Other Business Lines Profitability Measures 27 Auto, Homeowners and Other Personal Lines Underlying Combined Ratios 28 Allstate Brand Auto and Homeowners Underlying Loss and Expense 29 Homeowners Supplemental Information 30 Catastrophe Losses by Brand 31 Effect of Catastrophe Losses on the Combined Ratio 32 Catastrophe by Size of Event 33 Prior Year Reserve Reestimates 34 Asbestos and Environmental Reserves 35 Allstate Personal Lines - Auto, Homeowners, Other Personal Lines and Commercial Lines Profitability Measures 36 Emerging Businesses - Esurance, Encompass, Other Business Lines, and Answer Financial Profitability Measures 37 Allstate Financial Operations Allstate Financial Results 38 Return on Attributed Equity 39 Allstate Financial Premiums and Contract Charges 40 Allstate Financial Change in Contractholder Funds 41 Allstate Financial Analysis of Net Income 42 Allstate Financial Weighted Average Investment Spreads 43 Allstate Financial Supplemental Product Information 44 Allstate Financial Insurance Policies and Annuities in Force 45 Allstate Life, Allstate Annuities and Allstate Benefits Results and Product Information 46,47 Corporate and Other Results 48 Investments Investments 49 Limited Partnership Investments 50 Unrealized Net Capital Gains and Losses on Security Portfolio by Type 51 Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 52 Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 53 Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 54 Investment Results 55 Investment Position by Strategy 56 Investment Results by Strategy 57 Investment Income and Realized Capital Gains and Losses By Investment Type and Strategy 58 Performance-Based Long-Term Investments 59 Definitions of Non-GAAP Measures 60 THE ALLSTATE CORPORATION Investor Supplement - Third Quarter 2016 Table of Contents

1 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Revenues Property-liability insurance premiums $ 7,869 $ 7,814 $ 7,723 $ 7,684 $ 7,650 $ 7,549 $ 7,426 $ 23,406 $ 22,625 Life and annuity premiums and contract charges 571 564 566 547 538 536 537 1,701 1,611 Net investment income 748 762 731 710 807 789 850 2,241 2,446 Realized capital gains and losses: Total other-than-temporary impairment ("OTTI") losses (73) (77) (91) (166) (186) (47) (53) (241) (286) OTTI losses reclassified to (from) other comprehensive income - (2) 10 16 12 4 4 8 20 Net OTTI losses recognized in earnings (73) (79) (81) (150) (174) (43) (49) (233) (266) Sales and other realized capital gains and losses 106 103 (68) (100) 207 151 188 141 546 Total realized capital gains and losses 33 24 (149) (250) 33 108 139 (92) 280 Total revenues 9,221 9,164 8,871 8,691 9,028 8,982 8,952 27,256 26,962 Costs and expenses Property-liability insurance claims and claims expense 5,553 5,901 5,684 5,199 5,255 5,587 4,993 17,138 15,835 Life and annuity contract benefits 484 454 455 456 460 446 441 1,393 1,347 Interest credited to contractholder funds 183 185 190 183 194 185 199 558 578 Amortization of deferred policy acquisition costs 1,138 1,126 1,129 1,116 1,092 1,086 1,070 3,393 3,248 Operating costs and expenses 1,021 1,040 982 938 992 1,061 1,090 3,043 3,143 Restructuring and related charges 5 11 5 7 9 19 4 21 32 Interest expense 73 72 73 73 73 73 73 218 219 Total costs and expenses 8,457 8,789 8,518 7,972 8,075 8,457 7,870 25,764 24,402 Gain (loss) on disposition of operations 1 1 2 1 2 1 (1) 4 2 Income from operations before income tax expense 765 376 355 720 955 526 1,081 1,496 2,562 Income tax expense 245 105 109 231 305 171 404 459 880 Net income $ 520 $ 271 $ 246 $ 489 $ 650 $ 355 $ 677 $ 1,037 $ 1,682 Preferred stock dividends 29 29 29 29 29 29 29 87 87 Net income applicable to common shareholders $ 491 $ 242 $ 217 $ 460 $ 621 $ 326 $ 648 $ 950 $ 1,595 Earnings per common share: (1) Net income applicable to common shareholders per common share - Basic $ 1.32 $ 0.65 $ 0.57 $ 1.19 $ 1.56 $ 0.80 $ 1.56 $ 2.54 $ 3.92 Weighted average common shares - Basic 371.5 373.6 378.1 385.0 397.0 407.0 415.8 374.4 406.5 Net income applicable to common shareholders per common share - Diluted $ 1.31 $ 0.64 $ 0.57 $ 1.18 $ 1.54 $ 0.79 $ 1.53 $ 2.51 $ 3.87 Weighted average common shares - Diluted 375.9 378.1 382.9 390.2 402.1 412.6 422.6 378.9 412.4 Cash dividends declared per common share $ 0.33 $ 0.33 $ 0.33 $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 0.99 $ 0.90 (1) In accordance with GAAP, the quarter and year-to-date per share amounts are calculated discretely. Therefore, the sum of each quarter may not equal the year-to-date amount. THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Nine months endedThree months ended

2 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Contribution to income Operating income before the impact of restructuring and related charges $ 478 $ 242 $ 325 $ 629 $ 616 $ 274 $ 619 $ 1,045 $ 1,509 Restructuring and related charges, after-tax (4) (7) (3) (4) (6) (12) (3) (14) (21) Operating income * 474 235 322 625 610 262 616 1,031 1,488 Realized capital gains and losses, after-tax 22 17 (96) (161) 21 69 90 (57) 180 Valuation changes on embedded derivatives that are not hedged, after-tax - (4) (4) 2 (2) 4 (5) (8) (3) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (1) (1) (1) - (1) (2) - (3) (3) Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - 1 1 - - 1 1 1 Amortization of purchased intangible assets, after-tax (5) (6) (6) (8) (8) (8) (8) (17) (24) Gain (loss) on disposition of operations, after-tax 1 1 1 1 1 1 (1) 3 1 Change in accounting for investments in qualified affordable housing projects, after-tax - - - - - - (45) - (45) Net income applicable to common shareholders $ 491 $ 242 $ 217 $ 460 $ 621 $ 326 $ 648 $ 950 $ 1,595 Income per common share - Diluted Operating income before the impact of restructuring and related charges $ 1.27 $ 0.64 $ 0.85 $ 1.61 $ 1.53 $ 0.66 $ 1.46 $ 2.76 $ 3.66 Restructuring and related charges, after-tax (0.01) (0.02) (0.01) (0.01) (0.01) (0.03) - (0.04) (0.05) Operating income 1.26 0.62 0.84 1.60 1.52 0.63 1.46 2.72 3.61 Realized capital gains and losses, after-tax 0.06 0.04 (0.25) (0.41) 0.05 0.17 0.21 (0.15) 0.44 Valuation changes on embedded derivatives that are not hedged, after-tax - (0.01) (0.01) 0.01 (0.01) 0.01 (0.01) (0.02) (0.01) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax - - - - - - - (0.01) (0.01) Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - - - - - - - - Amortization of purchased intangible assets, after-tax (0.01) (0.01) (0.01) (0.02) (0.02) (0.02) (0.02) (0.04) (0.05) Gain (loss) on disposition of operations, after-tax - - - - - - - 0.01 - Change in accounting for investments in qualified affordable housing projects, after-tax - - - - - - (0.11) - (0.11) Net income applicable to common shareholders $ 1.31 $ 0.64 $ 0.57 $ 1.18 $ 1.54 $ 0.79 $ 1.53 $ 2.51 $ 3.87 Weighted average common shares - Diluted 375.9 378.1 382.9 390.2 402.1 412.6 422.6 378.9 412.4 THE ALLSTATE CORPORATION CONTRIBUTION TO INCOME ($ in millions, except per share data) Nine months endedThree months ended

3 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Property-Liability Property-Liability insurance premiums $ 7,869 $ 7,814 $ 7,723 $ 7,684 $ 7,650 $ 7,549 $ 7,426 $ 23,406 $ 22,625 Net investment income 310 316 302 280 307 292 358 928 957 Realized capital gains and losses 53 26 (99) (153) (161) 49 28 (20) (84) Total Property-Liability revenues 8,232 8,156 7,926 7,811 7,796 7,890 7,812 24,314 23,498 Allstate Financial Life and annuity premiums and contract charges 571 564 566 547 538 536 537 1,701 1,611 Net investment income 427 435 419 420 491 489 484 1,281 1,464 Realized capital gains and losses (21) - (49) (97) 194 59 111 (70) 364 Total Allstate Financial revenues 977 999 936 870 1,223 1,084 1,132 2,912 3,439 Corporate and Other Service fees (1) 1 1 1 1 - 1 1 3 2 Net investment income 11 11 10 10 9 8 8 32 25 Realized capital gains and losses 1 (2) (1) - - - - (2) - Total Corporate and Other revenues before reclassification of services fees 13 10 10 11 9 9 9 33 27 Reclassification of service fees (1) (1) (1) (1) (1) - (1) (1) (3) (2) Total Corporate and Other revenues 12 9 9 10 9 8 8 30 25 Consolidated revenues $ 9,221 $ 9,164 $ 8,871 $ 8,691 $ 9,028 $ 8,982 $ 8,952 $ 27,256 $ 26,962 (1) For presentation in the Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to Operating costs and expenses. THE ALLSTATE CORPORATION REVENUES ($ in millions) Nine months endedThree months ended

4 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2016 2016 2016 2015 2015 2016 2016 2016 2015 2015 Assets Liabilities Investments Reserve for property-liability insurance claims and $ 25,450 $ 24,904 $ 24,605 $ 23,869 $ 23,757 Fixed income securities, at fair value claims expense (amortized cost $57,775, $55,770, Reserve for life-contingent contract benefits 12,228 12,215 12,224 12,247 12,229 $55,627, $57,201 and $56,918) $ 60,306 $ 58,129 $ 57,291 $ 57,948 $ 58,257 Contractholder funds 20,583 20,845 21,092 21,295 21,559 Equity securities, at fair value Unearned premiums 12,772 12,300 12,036 12,202 12,343 (cost $4,800, $4,924, $4,792, Claim payments outstanding 934 946 852 842 804 $4,806 and $4,123) 5,288 5,265 5,117 5,082 4,236 Deferred income taxes 935 782 479 90 243 Mortgage loans 4,396 4,453 4,302 4,338 4,402 Other liabilities and accrued expenses 6,122 6,192 5,704 5,304 5,558 Limited partnership interests 5,588 5,407 5,091 4,874 4,823 Long-term debt 5,110 5,109 5,108 5,124 5,123 Short-term, at fair value Separate Accounts 3,469 3,438 3,507 3,658 3,677 (amortized cost $1,863, $2,850, $3,526, Total liabilities 87,603 86,731 85,607 84,631 85,293 $2,122 and $3,036) 1,863 2,850 3,526 2,122 3,036 Other 3,663 3,590 3,550 3,394 3,588 Equity Total investments 81,104 79,694 78,877 77,758 78,342 Preferred stock and additional capital paid-in, 1,746 1,746 1,746 1,746 1,746 72.2 thousand shares outstanding Common stock, 368 million, 371 million, 375 million, 381 million and 390 million shares outstanding 9 9 9 9 9 Additional capital paid-in 3,237 3,203 3,237 3,245 3,224 Retained income 39,990 39,623 39,505 39,413 39,068 Deferred ESOP expense (13) (13) (13) (13) (23) Treasury stock, at cost (532 million, 529 million, 525 million, 519 million and 510 million shares) (24,537) (24,310) (23,994) (23,620) (23,058) Accumulated other comprehensive income: Unrealized net capital gains and losses: Unrealized net capital gains and losses on fixed income securities with other-than-temporary impairments 56 49 31 56 57 Cash 389 446 531 495 905 Other unrealized net capital gains and losses 1,902 1,702 1,259 608 886 Premium installment receivables, net 5,799 5,593 5,558 5,544 5,711 Unrealized adjustment to DAC, DSI Deferred policy acquisition costs 3,886 3,819 3,807 3,861 3,811 and insurance reserves (141) (127) (90) (44) (64) Reinsurance recoverables, net (1) 8,922 8,650 8,573 8,518 8,468 Total unrealized net capital gains and losses 1,817 1,624 1,200 620 879 Accrued investment income 567 564 567 569 575 Unrealized foreign currency translation Property and equipment, net 1,013 1,011 1,011 1,024 1,050 adjustments (48) (41) (46) (60) (52) Goodwill 1,219 1,219 1,219 1,219 1,219 Unrecognized pension and other Other assets 2,169 2,850 2,297 2,010 2,039 postretirement benefit cost (1,267) (1,288) (1,304) (1,315) (1,289) Separate Accounts 3,469 3,438 3,507 3,658 3,677 Total accumulated other comprehensive income (loss) 502 295 (150) (755) (462) Total shareholders' equity 20,934 20,553 20,340 20,025 20,504 Total assets $ 108,537 $ 107,284 $ 105,947 $ 104,656 $ 105,797 Total liabilities and shareholders' equity $ 108,537 $ 107,284 $ 105,947 $ 104,656 $ 105,797 (1) THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ($ in millions) Reinsurance recoverables of unpaid losses related to Property-Liability were $6.35 billion, $6.03 billion, $5.96 billion, $5.89 billion and $5.85 billion as of September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. The increase in Reinsurance recoverables, net as of September 30, 2016 compared to December 31, 2015 is primarily due to the National Flood Insurance Program, related to a large rain event occurring in Louisiana in August 2016.

5 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 Book value per common share Numerator: Common shareholders' equity (1) $ 19,188 $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Denominator: Common shares outstanding and dilutive potential common shares outstanding 372.7 375.8 380.3 386.1 394.6 407.7 415.4 Book value per common share $ 51.48 $ 50.05 $ 48.89 $ 47.34 $ 47.54 $ 47.96 $ 49.19 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * Numerator: Common shareholders' equity $ 19,188 $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Unrealized net capital gains and losses on fixed income securities 1,506 1,407 993 443 807 1,196 1,871 Adjusted common shareholders' equity $ 17,682 $ 17,400 $ 17,601 $ 17,836 $ 17,951 $ 18,356 $ 18,562 Denominator: Common shares outstanding and dilutive potential common shares outstanding 372.7 375.8 380.3 386.1 394.6 407.7 415.4 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities $ 47.44 $ 46.30 $ 46.28 $ 46.20 $ 45.49 $ 45.02 $ 44.68 (1) BOOK VALUE PER COMMON SHARE THE ALLSTATE CORPORATION ($ in millions, except per share data) Excludes equity related to preferred stock of $1,746 million in each period.

6 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 Return on Common Shareholders' Equity Numerator: Net income applicable to common shareholders (1) $ 1,410 $ 1,540 $ 1,624 $ 2,055 $ 2,390 $ 2,519 $ 2,807 Denominator: Beginning common shareholders' equity $ 18,758 $ 19,552 $ 20,433 $ 20,558 $ 20,583 $ 21,126 $ 20,600 Ending common shareholders' equity 19,188 18,807 18,594 18,279 18,758 19,552 20,433 Average common shareholders' equity (2) $ 18,973 $ 19,180 $ 19,514 $ 19,419 $ 19,671 $ 20,339 $ 20,517 Return on common shareholders' equity 7.4 % 8.0 % 8.3 % 10.6 % 12.2 % 12.4 % 13.7 % Operating Income Return on Common Shareholders' Equity * Numerator: Operating income (1) $ 1,656 $ 1,792 $ 1,819 $ 2,113 $ 2,224 $ 2,212 $ 2,395 Denominator: Beginning common shareholders' equity $ 18,758 $ 19,552 $ 20,433 $ 20,558 $ 20,583 $ 21,126 $ 20,600 Unrealized net capital gains and losses 879 1,419 2,137 1,926 1,827 2,150 2,091 Adjusted beginning common shareholders' equity 17,879 18,133 18,296 18,632 18,756 18,976 18,509 Ending common shareholders' equity 19,188 18,807 18,594 18,279 18,758 19,552 20,433 Unrealized net capital gains and losses 1,817 1,624 1,200 620 879 1,419 2,137 Adjusted ending common shareholders' equity 17,371 17,183 17,394 17,659 17,879 18,133 18,296 Average adjusted common shareholders' equity (2) $ 17,625 $ 17,658 $ 17,845 $ 18,146 $ 18,318 $ 18,555 $ 18,403 Operating income return on common shareholders' equity 9.4 % 10.1 % 10.2 % 11.6 % 12.1 % 11.9 % 13.0 % (1) Net income applicable to common shareholders and operating income reflect a trailing twelve-month period. (2) THE ALLSTATE CORPORATION RETURN ON COMMON SHAREHOLDERS' EQUITY ($ in millions) Average common shareholders' equity and average adjusted common shareholders' equity are determined using a two-point average, with the beginning and ending common shareholders' equity and adjusted common shareholders' equity, respectively, for the twelve-month period as data points. Twelve months ended

7 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 Debt Short-term debt $ - $ - $ - $ - $ - $ - $ - Long-term debt 5,110 5,109 5,108 5,124 5,123 5,133 5,140 Total debt $ 5,110 $ 5,109 $ 5,108 $ 5,124 $ 5,123 $ 5,133 $ 5,140 Capital resources Debt $ 5,110 $ 5,109 $ 5,108 $ 5,124 $ 5,123 $ 5,133 $ 5,140 Shareholders' equity Preferred stock and additional capital paid-in 1,746 1,746 1,746 1,746 1,746 1,746 1,746 Common stock 9 9 9 9 9 9 9 Additional capital paid-in 3,237 3,203 3,237 3,245 3,224 3,205 3,109 Retained income 39,990 39,623 39,505 39,413 39,068 38,567 38,363 Deferred ESOP expense (13) (13) (13) (13) (23) (23) (23) Treasury stock (24,537) (24,310) (23,994) (23,620) (23,058) (22,273) (21,799) Unrealized net capital gains and losses 1,817 1,624 1,200 620 879 1,419 2,137 Unrealized foreign currency translation adjustments (48) (41) (46) (60) (52) (38) (29) Unrecognized pension and other postretirement benefit cost (1,267) (1,288) (1,304) (1,315) (1,289) (1,314) (1,334) Total shareholders' equity 20,934 20,553 20,340 20,025 20,504 21,298 22,179 Total capital resources $ 26,044 $ 25,662 $ 25,448 $ 25,149 $ 25,627 $ 26,431 $ 27,319 Ratio of debt to shareholders' equity 24.4 % 24.9 % 25.1 % 25.6 % 25.0 % 24.1 % 23.2 % Ratio of debt to capital resources 19.6 % 19.9 % 20.1 % 20.4 % 20.0 % 19.4 % 18.8 % THE ALLSTATE CORPORATION DEBT TO CAPITAL ($ in millions)

8 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 520 $ 271 $ 246 $ 489 $ 650 $ 355 $ 677 $ 1,037 $ 1,682 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other non-cash items 97 97 91 96 96 92 87 285 275 Realized capital gains and losses (33) (24) 149 250 (33) (108) (139) 92 (280) (Gain) loss on disposition of operations (1) (1) (2) (1) (2) (1) 1 (4) (2) Interest credited to contractholder funds 183 185 190 183 194 185 199 558 578 Changes in: Policy benefits and other insurance reserves 401 118 459 (27) (26) 411 115 978 500 Unearned premiums 478 267 (205) (124) 518 361 (117) 540 762 Deferred policy acquisition costs (87) (65) (7) (20) (87) (97) (35) (159) (219) Premium installment receivables, net (209) (38) 11 156 (132) (92) (66) (236) (290) Reinsurance recoverables, net (300) (80) (40) (45) 11 (120) (24) (420) (133) Income taxes 206 (150) (26) (59) 223 (342) 59 30 (60) Other operating assets and liabilities 129 64 (152) 32 (29) 93 (191) 41 (127) Net cash provided by operating activities 1,384 644 714 930 1,383 737 566 2,742 2,686 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales Fixed income securities 6,543 6,373 6,216 5,897 6,784 6,559 9,453 19,132 22,796 Equity securities 1,582 823 1,664 1,066 614 922 1,152 4,069 2,688 Limited partnership interests 271 183 180 306 204 295 296 634 795 Mortgage loans - (7) 7 - 6 - - - 6 Other investments 62 57 87 367 46 85 47 206 178 Investment collections Fixed income securities 1,292 1,189 949 1,184 1,005 1,030 1,213 3,430 3,248 Mortgage loans 253 71 79 233 (52) 243 114 403 305 Other investments 113 125 43 39 77 117 60 281 254 Investment purchases Fixed income securities (9,335) (7,546) (5,401) (7,830) (6,446) (7,272) (9,210) (22,282) (22,928) Equity securities (1,441) (939) (1,733) (1,722) (1,318) (748) (1,172) (4,113) (3,238) Limited partnership interests (425) (433) (270) (413) (367) (198) (365) (1,128) (930) Mortgage loans (196) (220) (44) (163) (15) (307) (202) (460) (524) Other investments (225) (196) (253) (159) (225) (325) (193) (674) (743) Change in short-term investments, net 763 688 (1,357) 962 (186) (328) (63) 94 (577) Change in other investments, net (21) (20) (19) (36) - (18) 2 (60) (16) Purchases of property and equipment, net (70) (68) (52) (84) (86) (74) (59) (190) (219) Net cash (used in) provided by investing activities (834) 80 96 (353) 41 (19) 1,073 (658) 1,095 CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt - - (16) - (11) (9) - (16) (20) Contractholder fund deposits 263 261 261 268 257 266 261 785 784 Contractholder fund withdrawals (524) (521) (492) (534) (641) (580) (572) (1,537) (1,793) Dividends paid on common stock (124) (125) (115) (118) (122) (125) (118) (364) (365) Dividends paid on preferred stock (29) (29) (29) (29) (29) (29) (29) (87) (87) Treasury stock purchases (250) (448) (456) (592) (792) (414) (1,010) (1,154) (2,216) Shares reissued under equity incentive plans, net 51 42 30 9 12 45 64 123 121 Excess tax benefits on share-based payment arrangements 5 8 12 1 1 17 26 25 44 Other 1 3 31 8 1 - (2) 35 (1) Net cash used in financing activities (607) (809) (774) (987) (1,324) (829) (1,380) (2,190) (3,533) NET (DECREASE) INCREASE IN CASH (57) (85) 36 (410) 100 (111) 259 (106) 248 CASH AT BEGINNING OF PERIOD 446 531 495 905 805 916 657 495 657 CASH AT END OF PERIOD $ 389 $ 446 $ 531 $ 495 $ 905 $ 805 $ 916 $ 389 $ 905 THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Nine months endedThree months ended

9 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 June 30, 2016 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Sept. 30, 2016 Property-Liability $ 2,101 $ 1,153 $ (1,068) $ - $ - $ - $ 2,186 Allstate Financial: Traditional life and accident and health 806 45 (41) - - - 810 Interest-sensitive life 868 25 (27) (2) 2 (18) 848 Fixed annuity 44 - (2) - - - 42 Subtotal 1,718 70 (70) (2) 2 (18) 1,700 Consolidated $ 3,819 $ 1,223 $ (1,138) $ (2) $ 2 $ (18) $ 3,886 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 June 30, 2015 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Sept. 30, 2015 Property-Liability $ 1,942 $ 1,114 $ (1,029) $ - $ - $ - $ 2,027 Allstate Financial: Traditional life and accident and health 768 40 (31) - - - 777 Interest-sensitive life 948 22 (28) (2) (1) 19 958 Fixed annuity 50 - (1) - - - 49 Subtotal 1,766 62 (60) (2) (1) 19 1,784 Consolidated $ 3,708 $ 1,176 $ (1,089) $ (2) $ (1) $ 19 $ 3,811 (1) (2) Included as a component of amortization of DAC on the Consolidated Statements of Operations. Change in Deferred Policy Acquisition Costs For the three months ended September 30, 2015 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. THE ALLSTATE CORPORATION ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS ($ in millions) Change in Deferred Policy Acquisition Costs For the three months ended September 30, 2016

10 Amortization relating to realized capital gains and Amortization DAC before DAC after losses and (acceleration) Effect of impact of Impact of impact of Beginning Acquisition Amortization valuation changes on deceleration unrealized Ending unrealized unrealized unrealized balance costs before embedded derivatives for changes in capital gains balance capital gains capital gains capital gains Dec. 31, 2015 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Sept. 30, 2016 and losses and losses and losses Property-Liability $ 2,029 $ 3,338 $ (3,181) $ - $ - $ - $ 2,186 $ 2,186 $ - $ 2,186 Allstate Financial: Traditional life and accident and health 792 139 (121) - - - 810 810 - 810 Interest-sensitive life 993 77 (83) (5) 2 (136) 848 1,050 (202) 848 Fixed annuity 47 - (5) - - - 42 42 - 42 Subtotal 1,832 216 (209) (5) 2 (136) 1,700 1,902 (202) 1,700 Consolidated $ 3,861 $ 3,554 $ (3,390) $ (5) $ 2 $ (136) $ 3,886 $ 4,088 $ (202) $ 3,886 Amortization relating to realized capital gains and Amortization DAC before DAC after losses and (acceleration) Effect of impact of Impact of impact of Beginning Acquisition Amortization valuation changes on deceleration unrealized Ending unrealized unrealized unrealized balance costs before embedded derivatives for changes in capital gains balance capital gains capital gains capital gains Dec. 31, 2014 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Sept. 30, 2015 and losses and losses and losses Property-Liability $ 1,820 $ 3,257 $ (3,050) $ - $ - $ - $ 2,027 $ 2,027 $ - $ 2,027 Allstate Financial: Traditional life and accident and health 753 128 (104) - - - 777 777 - 777 Interest-sensitive life 905 77 (83) (7) (1) 67 958 1,056 (98) 958 Fixed annuity 47 - (4) 1 - 5 49 49 - 49 Subtotal 1,705 205 (191) (6) (1) 72 1,784 1,882 (98) 1,784 Consolidated $ 3,525 $ 3,462 $ (3,241) $ (6) $ (1) $ 72 $ 3,811 $ 3,909 $ (98) $ 3,811 (1) (2) Included as a component of amortization of DAC on the Consolidated Statements of Operations. For the nine months ended September 30, 2015 Reconciliation of Deferred Policy Acquisition Costs as of September 30, 2015 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. THE ALLSTATE CORPORATION ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS ($ in millions) Change in Deferred Policy Acquisition Costs Reconciliation of Deferred Policy For the nine months ended September 30, 2016 Acquisition Costs as of September 30, 2016 Change in Deferred Policy Acquisition Costs

11 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Premiums written $ 8,311 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 23,877 $ 23,320 (Increase) decrease in unearned premiums (472) (264) 166 140 (485) (370) 166 (570) (689) Other 30 27 42 (7) (2) 42 (46) 99 (6) Premiums earned 7,869 7,814 7,723 7,684 7,650 7,549 7,426 23,406 22,625 Claims and claims expense (5,553) (5,901) (5,684) (5,199) (5,255) (5,587) (4,993) (17,138) (15,835) Amortization of deferred policy acquisition costs (1,068) (1,057) (1,056) (1,052) (1,029) (1,021) (1,000) (3,181) (3,050) Operating costs and expenses (888) (912) (853) (812) (867) (934) (962) (2,653) (2,763) Restructuring and related charges (5) (10) (5) (10) (8) (17) (4) (20) (29) Underwriting income (loss)* 355 (66) 125 611 491 (10) 467 414 948 Net investment income 310 316 302 280 307 292 358 928 957 Periodic settlements and accruals on non-hedge derivative instruments (1) - (1) (1) (1) - (1) (2) (2) Amortization of purchased intangible assets 9 9 9 13 12 13 12 27 37 Income tax expense on operations (221) (73) (144) (304) (259) (97) (281) (438) (637) Operating income 452 186 291 599 550 198 555 929 1,303 Realized capital gains and losses, after-tax 36 18 (64) (99) (104) 31 18 (10) (55) Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - 1 1 - - 1 1 1 Amortization of purchased intangible assets, after-tax (5) (6) (6) (8) (8) (8) (8) (17) (24) (Loss) gain on disposition of operations, after-tax - - - - (1) 1 - - - Change in accounting for investments in qualified affordable housing projects, after-tax - - - - - - (28) - (28) Net income applicable to common shareholders $ 483 $ 198 $ 222 $ 493 $ 437 $ 222 $ 538 $ 903 $ 1,197 Catastrophe losses $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,269 $ 1,361 Operating ratios Claims and claims expense ("loss") ratio 70.6 75.5 73.6 67.6 68.7 74.0 67.2 73.2 70.0 Expense ratio 24.9 25.3 24.8 24.4 24.9 26.1 26.5 25.0 25.8 Combined ratio 95.5 100.8 98.4 92.0 93.6 100.1 93.7 98.2 95.8 Loss ratio 70.6 75.5 73.6 67.6 68.7 74.0 67.2 73.2 70.0 Less: effect of catastrophe losses 6.1 12.3 10.7 4.7 3.5 10.6 4.0 9.7 6.0 effect of prior year non-catastrophe reserve reestimates 1.3 (0.2) 0.4 (0.2) 0.6 0.2 0.6 0.4 0.5 Underlying loss ratio * 63.2 63.4 62.5 63.1 64.6 63.2 62.6 63.1 63.5 Expense ratio 24.9 25.3 24.8 24.4 24.9 26.1 26.5 25.0 25.8 Less: effect of amortization of purchased intangible assets 0.1 0.1 0.1 0.1 0.2 0.2 0.1 0.1 0.2 Expense ratio, excluding the effect of amortization of purchased intangible assets 24.8 25.2 24.7 24.3 24.7 25.9 26.4 24.9 25.6 Underlying combined ratio * 88.0 88.6 87.2 87.4 89.3 89.1 89.0 88.0 89.1 Effect of catastrophe losses on combined ratio 6.1 12.3 10.7 4.7 3.5 10.6 4.0 9.7 6.0 Effect of prior year non-catastrophe reserve reestimates 1.3 (0.2) 0.4 (0.2) 0.6 0.2 0.6 0.4 0.5 Effect of amortization of purchased intangible assets on combined ratio 0.1 0.1 0.1 0.1 0.2 0.2 0.1 0.1 0.2 Combined ratio 95.5 100.8 98.4 92.0 93.6 100.1 93.7 98.2 95.8 Effect of restructuring and related charges on combined ratio 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 Effect of Discontinued Lines and Coverages on combined ratio 1.3 - - - 0.7 - - 0.4 0.2 THE ALLSTATE CORPORATION PROPERTY-LIABILITY RESULTS ($ in millions) Nine months endedThree months ended

12 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Property-Liability Underwriting Summary Allstate Protection $ 455 $ (64) $ 127 $ 613 $ 540 $ (8) $ 469 $ 518 $ 1,001 Discontinued Lines and Coverages (100) (2) (2) (2) (49) (2) (2) (104) (53) Underwriting income (loss) $ 355 $ (66) $ 125 $ 611 $ 491 $ (10) $ 467 $ 414 $ 948 Allstate Protection Underwriting Summary Premiums written $ 8,309 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 23,875 $ 23,320 Premiums earned $ 7,869 $ 7,814 $ 7,723 $ 7,684 $ 7,650 $ 7,549 $ 7,426 $ 23,406 $ 22,625 Claims and claims expense (5,454) (5,899) (5,683) (5,197) (5,207) (5,585) (4,992) (17,036) (15,784) Amortization of deferred policy acquisition costs (1,068) (1,057) (1,056) (1,052) (1,029) (1,021) (1,000) (3,181) (3,050) Operating costs and expenses (887) (912) (852) (812) (866) (934) (961) (2,651) (2,761) Restructuring and related charges (5) (10) (5) (10) (8) (17) (4) (20) (29) Underwriting income (loss) $ 455 $ (64) $ 127 $ 613 $ 540 $ (8) $ 469 $ 518 $ 1,001 Catastrophe losses $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,269 $ 1,361 Operating ratios Loss ratio 69.3 75.5 73.6 67.6 68.0 74.0 67.2 72.8 69.8 Expense ratio 24.9 25.3 24.8 24.4 24.9 26.1 26.5 25.0 25.8 Combined ratio 94.2 100.8 98.4 92.0 92.9 100.1 93.7 97.8 95.6 Effect of catastrophe losses on combined ratio 6.1 12.3 10.7 4.7 3.5 10.6 4.0 9.7 6.0 Effect of restructuring and related charges on combined ratio 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 Effect of amortization of purchased intangible assets on combined ratio 0.1 0.1 0.1 0.1 0.2 0.2 0.1 0.1 0.2 Discontinued Lines and Coverages Underwriting Summary Premiums written $ 2 $ - $ - $ - $ - $ - $ - $ 2 $ - Premiums earned $ - $ - $ - $ - $ - $ - $ - $ - $ - Claims and claims expense (1) (99) (2) (1) (2) (48) (2) (1) (102) (51) Operating costs and expenses (1) - (1) - (1) - (1) (2) (2) Underwriting loss $ (100) $ (2) $ (2) $ (2) $ (49) $ (2) $ (2) $ (104) $ (53) Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio 1.3 - 0.1 - 0.7 - - 0.4 0.2 Allstate Protection Underwriting Income (Loss) by Brand Allstate brand $ 493 $ (10) $ 171 $ 629 $ 571 $ 86 $ 526 $ 654 $ 1,183 Esurance brand (41) (37) (25) (28) (26) (41) (69) (103) (136) Encompass brand 5 (15) (18) 14 (4) (50) 14 (28) (40) Answer Financial (2) (2) (1) (2) (1) (3) (2) (5) (6) Underwriting income (loss) $ 455 $ (64) $ 127 $ 613 $ 540 $ (8) $ 469 $ 518 $ 1,001 (1) Includes unfavorable reestimates of $96 million and $44 million from our annual Discontinued Lines and Coverages reserve review performed in the third quarter of 2016 and 2015, respectively. THE ALLSTATE CORPORATION PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS ($ in millions) Nine months endedThree months ended

13 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Allstate brand (1) Auto (2) $ 4,940 $ 4,767 $ 4,746 $ 4,576 $ 4,746 $ 4,588 $ 4,535 $ 14,453 $ 13,869 Homeowners (3) 1,869 1,831 1,392 1,634 1,879 1,819 1,379 5,092 5,077 Other personal lines 447 428 353 376 429 424 357 1,228 1,210 Commercial lines 123 135 126 126 124 138 128 384 390 Other business lines 185 183 183 168 205 199 184 551 588 7,564 7,344 6,800 6,880 7,383 7,168 6,583 21,708 21,134 Esurance brand Auto 428 376 439 368 411 363 434 1,243 1,208 Homeowners 16 14 11 9 9 7 5 41 21 Other personal lines 2 2 2 1 3 1 2 6 6 446 392 452 378 423 371 441 1,290 1,235 Encompass brand Auto 153 162 138 152 169 173 147 453 489 Homeowners 121 126 104 116 134 136 111 351 381 Other personal lines 25 27 21 25 28 29 24 73 81 299 315 263 293 331 338 282 877 951 Allstate Protection 8,309 8,051 7,515 7,551 8,137 7,877 7,306 23,875 23,320 Discontinued Lines and Coverages (4) 2 - - - - - - 2 - Property-Liability $ 8,311 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 23,877 $ 23,320 Allstate Protection Auto $ 5,521 $ 5,305 $ 5,323 $ 5,096 $ 5,326 $ 5,124 $ 5,116 $ 16,149 $ 15,566 Homeowners 2,006 1,971 1,507 1,759 2,022 1,962 1,495 5,484 5,479 Other personal lines 474 457 376 402 460 454 383 1,307 1,297 Commercial lines 123 135 126 126 124 138 128 384 390 Other business lines 185 183 183 168 205 199 184 551 588 $ 8,309 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 23,875 $ 23,320 (1) Canada premiums included in Allstate brand Auto $ 220 $ 234 $ 164 $ 183 $ 215 $ 235 $ 173 $ 618 $ 623 Homeowners 64 64 41 50 60 63 41 169 164 Other personal lines 16 16 10 12 15 15 11 42 41 $ 300 $ 314 $ 215 $ 245 $ 290 $ 313 $ 225 $ 829 $ 828 (2) (3) (4) Represents retrospective reinsurance premium recognized when billed. Fluctuation in the Canadian exchange rate had no impact to auto premiums written growth rate in third quarter of 2016 and reduced premiums written growth rate by 0.2 points in the first nine months of 2016. Fluctuation in the Canadian exchange rate had no impact to homeowner premiums written growth rate in third quarter of 2016 and reduced premiums written growth rate by 0.1 points in the first nine months of 2016. THE ALLSTATE CORPORATION PROPERTY-LIABILITY PREMIUMS WRITTEN BY BRAND ($ in millions) Nine months endedThree months ended

14 Number of Location Number of Location Number of Location locations (5) Total brand (%) (6) specific (%) (7) locations Total brand (%) (6) specific (%) (7) locations Total brand (%) (6) specific (%) (7) Allstate brand Auto (2)(3) 25 1.0 7.1 35 3.2 6.2 25 1.7 7.3 Homeowners (4) 10 0.2 4.6 11 0.8 4.9 15 (0.4) (8) (2.3) Esurance brand Auto 9 0.4 2.3 15 1.3 5.6 6 0.3 2.7 Encompass brand Auto 9 1.6 8.8 10 4.1 9.5 4 1.6 14.3 Homeowners 5 1.4 9.2 6 1.7 8.1 5 1.4 11.6 Number of Location Number of Location Number of Location locations Total brand (%) (6) specific (%) (7) locations Total brand (%) (6) specific (%) (7) locations Total brand (%) (6) specific (%) (7) Allstate brand Auto (2)(3) 34 1.9 5.5 23 1.6 5.1 34 1.5 3.6 Homeowners (4) 16 1.5 6.1 6 0.4 6.4 9 0.7 3.5 Esurance brand Auto 18 3.0 6.7 13 1.3 5.1 13 1.5 5.9 Encompass brand Auto 9 2.0 5.7 8 1.3 7.6 16 4.8 8.5 Homeowners 5 1.7 7.4 8 1.2 5.9 15 3.2 8.8 (1) (2) (3) (4) (5) (6) (7) (8) Includes the impact of a rate decrease in California in first quarter 2016. Excluding California, Allstate brand homeowners total brand and location specific rate changes were 1.6% and 5.2% for the nine months ended September 30, 2016, respectively. Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of total brand prior year-end premiums written. Represents the impact in the states, the District of Columbia and Canadian provinces where rate changes were approved during the period as a percentage of its respective total prior year-end premiums written in those same locations. September 30, 2015 June 30, 2015 Rate changes include changes approved based on our net cost of reinsurance. These rate changes do not reflect initial rates filed for insurance subsidiaries initially writing business. Based on historical premiums written in those 50 states, the District of Columbia and Canadian provinces, rate changes approved for Allstate brand, Esurance brand and Encompass brand for the three month period ending September 30, 2016 are estimated to total $232 million. Rate changes do not include rating plan enhancements, including the introduction of discounts and surcharges that result in no change in the overall rate level in a location. Impacts of Allstate brand auto effective rate changes as a percentage of total brand prior year-end premiums written were 1.5%, 3.4%, 1.4%, 1.8%, 1.5% and 1.1% for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively. Rate changes are included in the effective calculations in the period the rate change is effective for renewal contracts. Impacts of Allstate brand homeowners effective rate changes as a percentage of total brand prior year-end premiums written were 0.6%, 0.5%, 0.7%, 0.5%, 0.5% and 0.4% for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively. Allstate brand auto and homeowners operates in 50 states, the District of Columbia, and 5 Canadian provinces. Esurance brand auto operates in 43 states and 1 Canadian province. Esurance brand homeowners operates in 30 states and 2 Canadian provinces. Encompass brand auto and homeowners operates in 40 states and the District of Columbia. Allstate brand auto rate changes were 7.8%, 8.4% and 6.7% for the trailing twelve months ended September 30, 2016, June 30, 2016 and March 31, 2016, respectively. March 31, 2016 December 31, 2015 Three months ended Three months ended Three months ended June 30, 2016September 30, 2016 (1) Three months ended Three months ended THE ALLSTATE CORPORATION PROPERTY-LIABILITY IMPACT OF NET RATE CHANGES APPROVED ON PREMIUMS WRITTEN Three months ended

15 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 Policies in Force (in thousands) (1) Allstate Brand Auto (2) 19,852 20,061 20,145 20,326 20,367 20,258 20,036 Homeowners (3) 6,109 6,135 6,152 6,174 6,163 6,141 6,114 Landlord 720 726 732 737 736 737 738 Renter 1,557 1,554 1,556 1,555 1,550 1,518 1,494 Condominium 665 667 667 668 665 662 658 Other 1,260 1,256 1,253 1,259 1,257 1,253 1,245 Other personal lines 4,202 4,203 4,208 4,219 4,208 4,170 4,135 Commercial lines 296 308 318 324 328 330 326 Other business lines 797 824 856 894 920 937 941 Excess and surplus 22 23 24 25 26 26 27 Total 31,278 31,554 31,703 31,962 32,012 31,862 31,579 Esurance Brand Auto 1,395 1,409 1,428 1,415 1,433 1,458 1,470 Homeowners 52 44 37 32 26 20 15 Other personal lines 47 47 46 44 44 44 42 Total 1,494 1,500 1,511 1,491 1,503 1,522 1,527 Encompass Brand Auto 649 676 701 723 746 767 778 Homeowners 305 318 329 338 347 355 361 Other personal lines 101 105 108 111 114 118 120 Total 1,055 1,099 1,138 1,172 1,207 1,240 1,259 Total Policies in Force 33,827 34,153 34,352 34,625 34,722 34,624 34,365 Non-Proprietary Premiums ($ in millions) Ivantage (4) $ 1,531 $ 1,528 $ 1,504 $ 1,490 $ 1,481 $ 1,461 $ 1,446 Answer Financial (5) 158 150 151 138 149 145 149 Agency Data Total Allstate agencies (6)(7) 12,200 12,200 12,100 12,300 12,100 12,000 Licensed sales professionals (7)(8) 23,600 23,800 24,000 24,400 24,000 23,500 Allstate independent agencies (7)(9) 2,200 2,200 2,100 2,100 2,200 2,000 (1) (2) (3) (4) (5) (6) (7) (8) (9) Rounded to the nearest hundred. Employees of Allstate agencies who are licensed to sell Allstate products. Includes 450 and 880 engaged Allstate independent agencies (“AIAs”) as of September 30, 2016 and December 31, 2015, respectively. Engaged AIAs, as currently determined, include those that increase the number of policies in force from the prior year. Represents non-proprietary premiums under management as of the end of the period related to personal and commercial line products offered by Ivantage when an Allstate product is not available. Fees for the three months ended September 30, 2016 were $26.3 million. Represents non-proprietary premiums written for the period. Commissions earned for the three months ended September 30, 2016 were $19.3 million. THE ALLSTATE CORPORATION POLICIES IN FORCE AND OTHER STATISTICS Policies in Force: Policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Allstate Dealer Services (service contracts and other products sold in conjunction with auto lending and vehicle sales transactions) and Partnership Marketing Group (roadside assistance products) statistics are not included in total policies in force since these are not meaningful. Additionally, non-proprietary products offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included. Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and Canada. Allstate brand auto PIF decreased in 42 states, including 9 out of our largest 10 states, as of September 30, 2016 compared to September 30, 2015. Allstate brand homeowners PIF decreased in 32 states, including 7 out of our largest 10 states, as of September 30, 2016 compared to September 30, 2015.

16 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 7,564 $ 7,344 $ 6,800 $ 6,880 $ 7,383 $ 7,168 $ 6,583 $ 21,708 $ 21,134 Net premiums earned Auto $ 4,793 $ 4,745 $ 4,667 $ 4,638 $ 4,597 $ 4,524 $ 4,432 $ 14,205 $ 13,553 Homeowners 1,683 1,684 1,678 1,674 1,663 1,645 1,631 5,045 4,939 Other personal lines 399 397 393 395 396 395 391 1,189 1,182 Commercial lines 127 127 129 129 128 128 125 383 381 Other business lines 150 142 143 135 148 137 141 435 426 Total 7,152 7,095 7,010 6,971 6,932 6,829 6,720 21,257 20,481 Incurred losses Auto $ 3,610 $ 3,634 $ 3,519 $ 3,495 $ 3,455 $ 3,431 $ 3,175 $ 10,763 $ 10,061 Homeowners 893 1,260 1,190 816 820 1,147 894 3,343 2,861 Other personal lines 236 256 261 216 241 259 244 753 744 Commercial lines 112 135 119 100 97 105 98 366 300 Other business lines 69 64 61 57 71 66 69 194 206 Total 4,920 5,349 5,150 4,684 4,684 5,008 4,480 15,419 14,172 Expenses Auto $ 1,134 $ 1,168 $ 1,103 $ 1,077 $ 1,086 $ 1,155 $ 1,113 $ 3,405 $ 3,354 Homeowners 384 373 377 372 385 372 389 1,134 1,146 Other personal lines 113 106 103 101 109 105 105 322 319 Commercial lines 34 35 38 36 36 40 38 107 114 Other business lines 74 74 68 72 61 63 69 216 193 Total 1,739 1,756 1,689 1,658 1,677 1,735 1,714 5,184 5,126 Underwriting income (loss) Auto $ 49 $ (57) $ 45 $ 66 $ 56 $ (62) $ 144 $ 37 $ 138 Homeowners 406 51 111 486 458 126 348 568 932 Other personal lines 50 35 29 78 46 31 42 114 119 Commercial lines (19) (43) (28) (7) (5) (17) (11) (90) (33) Other business lines 7 4 14 6 16 8 3 25 27 Total 493 (10) 171 629 571 86 526 654 1,183 Loss ratio 68.8 75.4 73.5 67.2 67.6 73.3 66.7 72.5 69.2 Expense ratio 24.3 24.7 24.1 23.8 24.2 25.4 25.5 24.4 25.0 Combined ratio 93.1 100.1 97.6 91.0 91.8 98.7 92.2 96.9 94.2 Loss ratio 68.8 75.4 73.5 67.2 67.6 73.3 66.7 72.5 69.2 Less: effect of catastrophe losses 6.2 12.9 11.2 4.9 3.6 10.7 4.1 10.0 6.1 effect of prior year non-catastrophe reserve reestimates - (0.3) 0.3 (0.1) (0.1) 0.3 0.7 - 0.3 Underlying loss ratio 62.6 62.8 62.0 62.4 64.1 62.3 61.9 62.5 62.8 Expense ratio 24.3 24.7 24.1 23.8 24.2 25.4 25.5 24.4 25.0 Less: effect of amortization of purchased intangible assets - - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 24.3 24.7 24.1 23.8 24.2 25.4 25.5 24.4 25.0 Underlying combined ratio 86.9 87.5 86.1 86.2 88.3 87.7 87.4 86.9 87.8 Effect of catastrophe losses 6.2 12.9 11.2 4.9 3.6 10.7 4.1 10.0 6.1 Effect of prior year non-catastrophe reserve reestimates - (0.3) 0.3 (0.1) (0.1) 0.3 0.7 - 0.3 Combined ratio 93.1 100.1 97.6 91.0 91.8 98.7 92.2 96.9 94.2 Effect of prior year reserve reestimates on combined ratio - - 0.2 (0.3) (0.2) 0.4 0.7 0.1 0.3 Effect of advertising expenses on combined ratio 2.2 2.2 1.5 1.5 2.0 2.4 2.3 2.0 2.2 THE ALLSTATE CORPORATION ALLSTATE BRAND PROFITABILITY MEASURES ($ in millions) Nine months endedThree months ended

17 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 New Issued Applications (in thousands) (2) Auto 584 582 584 562 790 818 792 1,750 2,400 Homeowners 188 193 164 174 218 212 177 545 607 Average Premium - Gross Written ($) (3) Auto (4) 532 516 507 502 494 488 484 518 489 Homeowners (5) 1,181 1,171 1,174 1,163 1,158 1,150 1,148 1,176 1,152 Average Premium - Net Earned ($) (6) Auto 479 471 461 456 452 450 444 470 449 Homeowners 1,099 1,090 1,082 1,078 1,074 1,066 1,060 1,090 1,067 Renewal Ratio (%) (7) Auto 87.5 88.0 88.0 88.2 88.6 88.9 88.8 87.9 88.8 Homeowners 87.9 87.8 88.1 88.5 88.7 88.4 88.4 87.9 88.5 Auto Claim Frequency (8) (% change year-over-year) Bodily Injury Gross 0.3 2.8 1.1 3.9 6.4 6.8 6.8 1.4 6.6 Bodily Injury Paid (9) (19.6) 1.5 5.9 - 3.5 6.0 2.3 (4.0) 4.0 Property Damage Gross (10)(11) 3.9 5.6 2.1 7.5 8.9 6.9 2.1 3.8 5.9 Property Damage Paid 0.1 (0.1) 2.4 3.7 4.7 4.2 2.5 0.8 3.8 Auto Paid Claim Severity (12) (% change year-over-year) Bodily injury (9) 12.4 (2.3) (5.5) (7.0) (2.9) 0.6 3.9 0.7 0.5 Property damage 1.9 5.3 7.5 4.0 5.4 3.7 4.8 4.8 4.5 Homeowners Excluding Catastrophe Losses (% change year-over-year) Gross Claim frequency (8) 5.2 (12.5) (7.7) 0.9 (1.9) 0.4 (7.9) (5.1) (3.1) Paid Claim frequency (8) 0.7 (14.3) (2.0) (2.1) (3.7) (0.9) (7.0) (5.4) (3.8) Paid Claim severity (0.5) 4.7 (2.7) 2.6 4.5 3.6 6.6 0.6 4.8 (1) (2) (3) (4) (5) (6) (7) (9) (10) (11) (12) Paid claim severity is calculated by dividing the sum of paid losses and loss expenses by claims closed with a payment during the period. The rate of change in paid severity is the year over year percent increase or decrease in paid claim severity for the period. Average Premium - Net Earned: Earned premium divided by average policies in force for the period. Earned premium includes the impacts from mid-term premium adjustments and ceded reinsurance, but does not include impacts of premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners. Renewal ratio: Renewal policies issued during the period, based on contract effective dates, divided by the total policies issued 6 months prior for auto or 12 months prior for homeowners. The paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. The gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. With the increase in auto frequency experienced in recent quarters, claim handling processes were modified to more completely identify instances of liability at first notice of loss. Changes in property damage claim opening practices can impact gross claim frequency comparisons to prior year. This resulted in an increase in the number of counted claims as well as an increase in claims closed without payment, as in many instances, we were ultimately not required to provide indemnification. In the third quarter of 2015, a decision to more completely capture information on claims involving a vehicle collision with non-vehicle property gave rise to an increase in the number of counted claims, however, experience indicates that for these types of claims, payments are not always required to be made. Accordingly, claims closed without payment also increased. This change, resulted in a steady increase in notice counts as the change was more broadly adopted. Quarterly increases (decreases) in property damage gross claim frequency consistently measured were 3.0%, (0.8)%, 5.5% and 7.4% in the three months ended June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. Auto underwriting results for 2016 and 2015 were not impacted. Decreases in bodily injury paid claim frequency and the related increase in severity reflect payment mix and claim closure patterns that were impacted by changes in bodily injury claim processes to require enhanced documentation of injuries and related medical treatments. As a result, fewer claims were opened and paid in third quarter 2016, but those that were paid had higher average payments. Normalizing for the process enhancements made to bodily injury claims in the quarter, bodily injury paid claim frequency and severity, consistently measured, would have been generally consistent with those observed during the first half of 2016. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. (8) THE ALLSTATE CORPORATION ALLSTATE BRAND STATISTICS (1) Nine months endedThree months ended Statistics presented for Allstate brand exclude excess and surplus lines. New Issued Applications: Item counts of automobiles or homeowners insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate Protection brand. Allstate brand includes automobiles added by existing customers when they exceed the number allowed on a policy, which in 2015 was either four or ten depending on the state. In 2016, all states allow ten automobiles on a policy. Average Premium - Gross Written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, which is 6 months for auto and 12 months for homeowners. Fluctuation in the Canadian exchange rate had no impact to auto premiums written growth rate in the third quarter of 2016 and reduced premiums written growth rate by 0.2 points in the first nine months of 2016. Fluctuation in the Canadian exchange rate had no impact to homeowner premiums written growth rate in third quarter of 2016 and reduced premiums written growth rate by 0.1 points in the first nine months of 2016.

18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Change in auto claim frequency (2) (% change in frequency rate year over year) % Change in gross claim frequency 2.1% -3.2% -4.4% -4.1% -2.9% 1.2% -1.8% -3.1% -2.4% -1.1% 0.8% -1.7% -0.3% -2.8% -1.3% 4.0% 6.8% 6.8% 6.4% 3.9% 1.1% 2.8% 0.3% % Change in paid claim frequency (3) 4.5% 1.5% -0.9% -2.4% -0.2% 1.1% -1.0% 0.7% -2.3% -2.7% -2.1% -4.7% -4.7% -3.8% 0.2% 4.7% 2.3% 6.0% 3.5% 0.0% 5.9% 1.5% -19.6% (1) Frequency statistics exclude counts associated with catastrophe events. (2) (3) Decreases in bodily injury paid claim frequency and the related increase in severity reflect payment mix and claim closure patterns that were impacted by changes in bodily injury claim processes to require enhanced documentation of injuries and related medical treatments. As a result, fewer claims were opened and paid in third quarter 2016, but those that were paid had higher average payments. Normalizing for the process enhancements made to bodily injury claims in the quarter, bodily injury paid claim frequency and severity, consistently measured, would have been generally consistent with those observed during the first half of 2016. The paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. The gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. THE ALLSTATE CORPORATION ALLSTATE BRAND AUTO CLAIM FREQUENCY ANALYSIS (1) BODILY INJURY % CHANGE IN GROSS AND PAID CLAIM FREQUENCY RATE 2011 2012 2013 2014 2015 2016 -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 2014 2015 2016 % c ha ng e ye ar -o ve r- ye ar Rates of change in auto bodily injury frequency % change in gross claim frequency % change in paid claim frequency

19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Change in auto claim frequency (2) (% change in frequency rate year over year) % Change in gross claim frequency (3)(4) 0.6% -4.4% -3.3% -3.1% -4.8% 0.7% -1.8% -4.3% -0.7% -0.3% 0.6% 1.4% 5.1% -2.4% -1.0% 0.5% 2.1% 6.9% 8.9% 7.5% 2.1% 5.6% 3.9% % Change in paid claim frequency 0.4% -2.9% -4.3% -2.4% -4.3% -0.3% -3.4% -4.1% -4.5% 0.5% 3.7% 0.8% 2.9% -0.4% 0.4% 2.5% 2.5% 4.2% 4.7% 3.7% 2.4% -0.1% 0.1% (1) Frequency statistics exclude counts associated with catastrophe events. (2) (3) (4) The paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. The gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. With the increase in auto frequency experienced in recent quarters, claim handling processes were modified to more completely identify instances of liability at first notice of loss. Changes in property damage claim opening practices can impact gross claim frequency comparisons to prior year. This resulted in an increase in the number of counted claims as well as an increase in claims closed without payment, as in many instances, we were ultimately not required to provide indemnification. In the third quarter of 2015, a decision to more completely capture information on claims involving a vehicle collision with non-vehicle property gave rise to an increase in the number of counted claims, however, experience indicates that for these types of claims, payments are not always required to be made. Accordingly, claims closed without payment also increased. This change, resulted in a steady increase in notice counts as the change was more broadly adopted. Quarterly increases (decreases) in property damage gross claim frequency consistently measured were 3.0%, (0.8)%, 5.5% and 7.4% in the three months ended June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. Auto underwriting results for 2016 and 2015 were not impacted. THE ALLSTATE CORPORATION ALLSTATE BRAND AUTO CLAIM FREQUENCY ANALYSIS (1) PROPERTY DAMAGE % CHANGE IN GROSS AND PAID CLAIM FREQUENCY 2011 2012 2013 2014 2015 2016 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 2014 2015 2016 % c ha ng e ye ar -o ve r- ye ar Rates of change in auto property damage frequency % change in gross claim frequency % change in paid claim frequency

20 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016 (% change in frequency rate year over year) % Change in gross claim frequency (2)(3)(4) -2.7% -1.3% 1.7% -0.9% -1.3% -5.2% -6.3% -1.8% -2.0% -2.9% 2.9% -6.7% 5.7% 1.4% -2.6% -2.6% 0.3% 0.5% 6.3% 4.7% % Change in gross claim frequency indexed to 1996 (3)(4)(5) 97.3% 96.0% 97.7% 96.8% 95.5% 90.6% 84.9% 83.3% 81.7% 79.3% 81.6% 76.1% 80.5% 81.6% 79.5% 77.4% 77.6% 78.0% 82.9% 86.8% % Change in paid claim frequency (2) -2.1% -1.5% 2.9% -2.7% 0.3% -1.8% -3.2% -2.6% -2.6% -2.4% 0.8% -3.6% 6.1% 0.7% -2.3% -3.1% 0.1% 1.3% 3.8% 0.6% % Change in paid claim frequency indexed to 1996 (5) 97.9% 96.4% 99.2% 96.5% 96.8% 95.1% 92.1% 89.7% 87.3% 85.2% 85.9% 82.8% 87.9% 88.5% 86.5% 83.8% 83.9% 84.9% 88.2% 88.7% (1) Frequency statistics exclude counts associated with catastrophe events. (2) (3) (4) (5) The percent change in gross or paid claim frequency indexed to 1996 equals the current year percent change plus 100%, times the prior year indexed amount beginning with 100% in 1996 rounded. THE ALLSTATE CORPORATION ALLSTATE BRAND AUTO CLAIM FREQUENCY ANALYSIS (1) PROPERTY DAMAGE % CHANGE IN GROSS AND PAID CLAIM FREQUENCY AND INDEXED TO 1996 The paid claim frequency is calculated as annualized notice counts closed with payment in the period divided by the average of policies in force with the applicable coverage during the period. The gross claim frequency is calculated as annualized notice counts received in the period divided by the average of policies in force with the applicable coverage during the period. Gross claim frequency includes all actual notice counts, regardless of their current status (open or closed) or their ultimate disposition (closed with a payment or closed without payment). Frequency statistics exclude counts associated with catastrophe events. The percent change in paid or gross claim frequency is calculated as the amount of increase or decrease in the paid or gross claim frequency in the current period compared to the same period in the prior year; divided by the prior year paid or gross claim frequency. In the third quarter of 2015, a decision to more completely capture information on claims involving a vehicle collision with non-vehicle property gave rise to an increase in the number of counted claims, however, experience indicates that for these types of claims, payments are not always required to be made. Accordingly, claims closed without payment also increased. This change, resulted in a steady increase in notice counts as the change was more broadly adopted. Quarterly increases (decreases) in property damage gross claim frequency consistently measured were 3.0%, (0.8)%, 5.5% and 7.4% in the three months ended June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. Auto underwriting results for 2016 and 2015 were not impacted. With the increase in auto frequency experienced in recent quarters, claim handling processes were modified to more completely identify instances of liability at first notice of loss. Changes in property damage claim opening practices can impact gross claim frequency comparisons to prior year. This resulted in an increase in the number of counted claims as well as an increase in claims closed without payment, as in many instances, we were ultimately not required to provide indemnification. 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016 % c ha ng e ye ar -o ve r- ye ar Rates of change in auto property damage frequency % Change in gross claim frequency indexed to 1996 % Change in paid claim frequency indexed to 1996

21 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 446 $ 392 $ 452 $ 378 $ 423 $ 371 $ 441 $ 1,290 $ 1,235 Net premiums earned Auto $ 405 $ 403 $ 394 $ 391 $ 392 $ 397 $ 382 $ 1,202 $ 1,171 Homeowners 11 10 8 7 5 4 3 29 12 Other personal lines 2 2 2 2 2 1 2 6 5 Total 418 415 404 400 399 402 387 1,237 1,188 Incurred losses Auto $ 313 $ 308 $ 289 $ 294 $ 285 $ 300 $ 297 $ 910 $ 882 Homeowners 11 10 4 4 4 3 1 25 8 Other personal lines 2 1 1 1 1 1 1 4 3 Total 326 319 294 299 290 304 299 939 893 Expenses Auto $ 111 $ 107 $ 123 $ 119 $ 125 $ 132 $ 155 $ 341 $ 412 Homeowners 22 25 11 9 10 7 - 58 17 Other personal lines - 1 1 1 - - 2 2 2 Total 133 133 135 129 135 139 157 401 431 Underwriting income (loss) Auto $ (19) $ (12) $ (18) $ (22) $ (18) $ (35) $ (70) $ (49) $ (123) Homeowners (22) (25) (7) (6) (9) (6) 2 (54) (13) Other personal lines - - - - 1 - (1) - - Total (41) (37) (25) (28) (26) (41) (69) (103) (136) Loss ratio 78.0 76.9 72.8 74.8 72.7 75.6 77.2 75.9 75.1 Expense ratio (1) 31.8 32.0 33.4 32.2 33.8 34.6 40.6 32.4 36.3 Combined ratio 109.8 108.9 106.2 107.0 106.5 110.2 117.8 108.3 111.4 Loss ratio 78.0 76.9 72.8 74.8 72.7 75.6 77.2 75.9 75.1 Less: effect of catastrophe losses 3.3 3.4 0.7 0.8 0.8 2.0 - 2.5 0.9 effect of prior year non-catastrophe reserve reestimates (1.0) (1.0) (1.0) (1.3) (1.6) (0.7) (1.0) (1.0) (1.1) Underlying loss ratio 75.7 74.5 73.1 75.3 73.5 74.3 78.2 74.4 75.3 Expense ratio 31.8 32.0 33.4 32.2 33.8 34.6 40.6 32.4 36.3 Less: effect of amortization of purchased intangible assets 1.5 1.7 1.5 2.2 2.0 2.2 2.3 1.5 2.2 Expense ratio, excluding the effect of amortization of purchased intangible assets 30.3 30.3 31.9 30.0 31.8 32.4 38.3 30.9 34.1 Underlying combined ratio 106.0 104.8 105.0 105.3 105.3 106.7 116.5 105.3 109.4 Effect of catastrophe losses 3.3 3.4 0.7 0.8 0.8 2.0 - 2.5 0.9 Effect of prior year non-catastrophe reserve reestimates (1.0) (1.0) (1.0) (1.3) (1.6) (0.7) (1.0) (1.0) (1.1) Effect of amortization of purchased intangible assets 1.5 1.7 1.5 2.2 2.0 2.2 2.3 1.5 2.2 Combined ratio 109.8 108.9 106.2 107.0 106.5 110.2 117.8 108.3 111.4 Effect of prior year reserve reestimates on combined ratio (1.0) (1.0) (1.0) (1.3) (1.3) (0.7) (1.0) (1.0) (1.0) Effect of advertising expenses on combined ratio 11.7 12.2 11.6 9.8 11.0 12.4 17.3 11.9 13.6 Policies in Force (in thousands) Auto 1,395 1,409 1,428 1,415 1,433 1,458 1,470 1,395 1,433 Homeowners 52 44 37 32 26 20 15 52 26 Other personal lines 47 47 46 44 44 44 42 47 44 1,494 1,500 1,511 1,491 1,503 1,522 1,527 1,494 1,503 New Issued Applications (in thousands) Auto 151 141 168 139 145 148 195 460 488 Homeowners 10 11 7 7 8 7 6 28 21 Other personal lines 9 8 10 7 9 10 12 27 31 170 160 185 153 162 165 213 515 540 Average Premium - Gross Written ($) Auto 546 538 547 526 513 506 520 544 514 Homeowners 872 855 891 821 838 814 849 877 836 Renewal Ratio (%) Auto 78.9 80.0 79.6 78.8 78.7 80.4 79.9 79.5 79.6 (1) Esurance continued to invest in expansion initiatives, including costs incurred to expand beyond our initial 30 states at acquisition, adding new products such as homeowners, motorcycle, and usage based insurance and expanding into the Canadian market. The related expenses contributed approximately 5.4 points in the third quarter of 2016 compared to 3.8 points to the total expense ratio in the third quarter of 2015, and 5.1 points in the first nine months of 2016 compared to 4.2 points in the first nine months of 2015. THE ALLSTATE CORPORATION ESURANCE PROFITABILITY MEASURES AND STATISTICS ($ in millions) Nine months endedThree months ended

22 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 299 $ 315 $ 263 $ 293 $ 331 $ 338 $ 282 $ 877 $ 951 Net premiums earned Auto $ 155 $ 158 $ 159 $ 162 $ 165 $ 165 $ 165 $ 472 $ 495 Homeowners 119 121 124 124 127 126 127 364 380 Other personal lines 25 25 26 27 27 27 27 76 81 Total 299 304 309 313 319 318 319 912 956 Incurred losses Auto $ 117 $ 130 $ 123 $ 126 $ 135 $ 129 $ 116 $ 370 $ 380 Homeowners 74 85 85 61 75 117 74 244 266 Other personal lines 17 16 31 27 23 27 23 64 73 Total 208 231 239 214 233 273 213 678 719 Expenses Auto $ 44 $ 45 $ 45 $ 44 $ 46 $ 50 $ 47 $ 134 $ 143 Homeowners 34 36 36 34 36 38 37 106 111 Other personal lines 8 7 7 7 8 7 8 22 23 Total 86 88 88 85 90 95 92 262 277 Underwriting income (loss) Auto $ (6) $ (17) $ (9) $ (8) $ (16) $ (14) $ 2 $ (32) $ (28) Homeowners 11 - 3 29 16 (29) 16 14 3 Other personal lines - 2 (12) (7) (4) (7) (4) (10) (15) Total 5 (15) (18) 14 (4) (50) 14 (28) (40) Loss ratio 69.6 76.0 77.3 68.4 73.1 85.8 66.8 74.4 75.2 Expense ratio 28.7 28.9 28.5 27.1 28.2 29.9 28.8 28.7 29.0 Combined ratio 98.3 104.9 105.8 95.5 101.3 115.7 95.6 103.1 104.2 Loss ratio 69.6 76.0 77.3 68.4 73.1 85.8 66.8 74.4 75.2 Less: effect of catastrophe losses 9.0 11.2 13.3 4.8 5.3 18.6 6.3 11.2 10.0 effect of prior year non-catastrophe reserve reestimates - 0.9 4.2 (1.6) 5.1 0.6 (1.3) 1.8 1.5 Underlying loss ratio 60.6 63.9 59.8 65.2 62.7 66.6 61.8 61.4 63.7 Expense ratio 28.7 28.9 28.5 27.1 28.2 29.9 28.8 28.7 29.0 Less: effect of amortization of purchased intangible assets - - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 28.7 28.9 28.5 27.1 28.2 29.9 28.8 28.7 29.0 Underlying combined ratio 89.3 92.8 88.3 92.3 90.9 96.5 90.6 90.1 92.7 Effect of catastrophe losses 9.0 11.2 13.3 4.8 5.3 18.6 6.3 11.2 10.0 Effect of prior year non-catastrophe reserve reestimates - 0.9 4.2 (1.6) 5.1 0.6 (1.3) 1.8 1.5 Combined ratio 98.3 104.9 105.8 95.5 101.3 115.7 95.6 103.1 104.2 Effect of prior year reserve reestimates on combined ratio 0.3 0.3 4.5 (1.9) 5.4 0.9 (2.2) 1.8 1.4 Effect of advertising expenses on combined ratio - 0.3 - - 0.3 0.6 0.6 0.1 0.5 Policies in Force (in thousands) Auto 649 676 701 723 746 767 778 649 746 Homeowners 305 318 329 338 347 355 361 305 347 Other personal lines 101 105 108 111 114 118 120 101 114 1,055 1,099 1,138 1,172 1,207 1,240 1,259 1,055 1,207 New Issued Applications (in thousands) Auto 13 15 15 16 20 23 23 43 66 Homeowners 9 9 9 10 12 14 12 27 38 Average Premium - Gross Written ($) Auto 1,022 988 981 981 963 925 913 997 934 Homeowners 1,659 1,629 1,618 1,587 1,583 1,532 1,519 1,636 1,546 Renewal Ratio (%) Auto 73.1 75.5 76.1 76.1 76.7 78.0 78.5 74.9 77.7 Homeowners 77.9 79.9 81.5 81.3 82.5 83.2 83.2 79.7 82.9 THE ALLSTATE CORPORATION ENCOMPASS BRAND PROFITABILITY MEASURES AND STATISTICS ($ in millions) Nine months endedThree months ended

23 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, ($ in millions) 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Allstate brand $ 4,940 $ 4,767 $ 4,746 $ 4,576 $ 4,746 $ 4,588 $ 4,535 $ 14,453 $ 13,869 Esurance brand 428 376 439 368 411 363 434 1,243 1,208 Encompass brand 153 162 138 152 169 173 147 453 489 5,521 5,305 5,323 5,096 5,326 5,124 5,116 16,149 15,566 Net premiums earned Allstate brand $ 4,793 $ 4,745 $ 4,667 $ 4,638 $ 4,597 $ 4,524 $ 4,432 $ 14,205 $ 13,553 Esurance brand 405 403 394 391 392 397 382 1,202 1,171 Encompass brand 155 158 159 162 165 165 165 472 495 5,353 5,306 5,220 5,191 5,154 5,086 4,979 15,879 15,219 Incurred losses Allstate brand $ 3,610 $ 3,634 $ 3,519 $ 3,495 $ 3,455 $ 3,431 $ 3,175 $ 10,763 $ 10,061 Esurance brand 313 308 289 294 285 300 297 910 882 Encompass brand 117 130 123 126 135 129 116 370 380 4,040 4,072 3,931 3,915 3,875 3,860 3,588 12,043 11,323 Expenses Allstate brand $ 1,134 $ 1,168 $ 1,103 $ 1,077 $ 1,086 $ 1,155 $ 1,113 $ 3,405 $ 3,354 Esurance brand 111 107 123 119 125 132 155 341 412 Encompass brand 44 45 45 44 46 50 47 134 143 1,289 1,320 1,271 1,240 1,257 1,337 1,315 3,880 3,909 Underwriting income (loss) Allstate brand $ 49 $ (57) $ 45 $ 66 $ 56 $ (62) $ 144 $ 37 $ 138 Esurance brand (19) (12) (18) (22) (18) (35) (70) (49) (123) Encompass brand (6) (17) (9) (8) (16) (14) 2 (32) (28) 24 (86) 18 36 22 (111) 76 (44) (13) Loss ratio Allstate brand 75.3 76.6 75.4 75.4 75.2 75.9 71.7 75.8 74.2 Esurance brand 77.3 76.4 73.4 75.2 72.7 75.6 77.7 75.7 75.3 Encompass brand 75.5 82.3 77.4 77.8 81.8 78.2 70.3 78.4 76.8 Allstate Protection 75.5 76.7 75.3 75.4 75.2 75.9 72.1 75.9 74.4 Expense ratio Allstate brand 23.7 24.6 23.6 23.2 23.6 25.5 25.1 23.9 24.8 Esurance brand 27.4 26.6 31.2 30.4 31.9 33.2 40.6 28.4 35.2 Encompass brand 28.4 28.5 28.3 27.1 27.9 30.3 28.5 28.4 28.9 Allstate Protection 24.1 24.9 24.4 23.9 24.4 26.3 26.4 24.4 25.7 Combined ratio Allstate brand 99.0 101.2 99.0 98.6 98.8 101.4 96.8 99.7 99.0 Esurance brand 104.7 103.0 104.6 105.6 104.6 108.8 118.3 104.1 110.5 Encompass brand 103.9 110.8 105.7 104.9 109.7 108.5 98.8 106.8 105.7 Allstate Protection 99.6 101.6 99.7 99.3 99.6 102.2 98.5 100.3 100.1 Effect of catastrophe losses on combined ratio Allstate brand 3.1 4.1 2.9 1.1 0.5 3.2 0.3 3.4 1.3 Esurance brand 2.2 2.2 0.5 0.5 0.5 1.8 - 1.7 0.8 Encompass brand 3.3 1.9 1.3 0.6 0.6 3.0 - 2.1 1.2 Allstate Protection 3.1 3.9 2.7 1.0 0.5 3.1 0.3 3.2 1.3 Effect of prior year reserve reestimates on combined ratio Allstate brand (0.1) (0.8) 0.1 (0.3) 0.1 0.4 0.8 (0.2) 0.4 Esurance brand (1.0) (1.0) (1.0) (1.3) (1.3) (0.8) (1.0) (1.0) (1.0) Encompass brand (1.3) 3.2 1.3 (0.6) 7.9 (1.2) (4.8) 1.1 0.6 Allstate Protection (0.2) (0.7) 0.1 (0.4) 0.3 0.2 0.5 (0.3) 0.3 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand (0.1) (0.1) (0.1) (0.2) (0.1) - (0.1) - (0.1) Esurance brand - - - - 0.2 - - - 0.1 Encompass brand - (0.6) - - - - (0.6) (0.2) (0.3) Allstate Protection (0.1) (0.1) (0.1) (0.2) - (0.1) - (0.1) - Effect of amortization of purchased intangible assets on combined ratio Esurance brand 1.5 1.8 1.5 2.3 2.0 2.3 2.3 1.6 2.2 Allstate Protection 0.1 0.1 0.1 0.2 0.2 0.1 0.2 0.2 0.2 THE ALLSTATE CORPORATION AUTO PROFITABILITY MEASURES Nine months endedThree months ended

24 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, ($ in millions) 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Allstate brand $ 1,869 $ 1,831 $ 1,392 $ 1,634 $ 1,879 $ 1,819 $ 1,379 $ 5,092 $ 5,077 Esurance brand 16 14 11 9 9 7 5 41 21 Encompass brand 121 126 104 116 134 136 111 351 381 2,006 1,971 1,507 1,759 2,022 1,962 1,495 5,484 5,479 Net premiums earned Allstate brand $ 1,683 $ 1,684 $ 1,678 $ 1,674 $ 1,663 $ 1,645 $ 1,631 $ 5,045 $ 4,939 Esurance brand 11 10 8 7 5 4 3 29 12 Encompass brand 119 121 124 124 127 126 127 364 380 1,813 1,815 1,810 1,805 1,795 1,775 1,761 5,438 5,331 Incurred losses Allstate brand $ 893 $ 1,260 $ 1,190 $ 816 $ 820 $ 1,147 $ 894 $ 3,343 $ 2,861 Esurance brand 11 10 4 4 4 3 1 25 8 Encompass brand 74 85 85 61 75 117 74 244 266 978 1,355 1,279 881 899 1,267 969 3,612 3,135 Expenses Allstate brand $ 384 $ 373 $ 377 $ 372 $ 385 $ 372 $ 389 $ 1,134 $ 1,146 Esurance brand 22 25 11 9 10 7 - 58 17 Encompass brand 34 36 36 34 36 38 37 106 111 440 434 424 415 431 417 426 1,298 1,274 Underwriting income (loss) Allstate brand $ 406 $ 51 $ 111 $ 486 $ 458 $ 126 $ 348 $ 568 $ 932 Esurance brand (22) (25) (7) (6) (9) (6) 2 (54) (13) Encompass brand 11 - 3 29 16 (29) 16 14 3 395 26 107 509 465 91 366 528 922 Loss ratio Allstate brand 53.1 74.8 70.9 48.8 49.3 69.7 54.8 66.2 57.9 Esurance brand 100.0 100.0 50.0 57.1 80.0 75.0 33.3 86.2 66.7 Encompass brand 62.2 70.2 68.6 49.2 59.1 92.8 58.3 67.1 70.0 Allstate Protection 53.9 74.7 70.7 48.8 50.1 71.4 55.0 66.4 58.8 Expense ratio Allstate brand 22.8 22.2 22.5 22.2 23.2 22.6 23.9 22.5 23.2 Esurance brand 200.0 250.0 137.5 128.6 200.0 175.0 - 200.0 141.6 Encompass brand 28.6 29.8 29.0 27.4 28.3 30.2 29.1 29.1 29.2 Allstate Protection 24.3 23.9 23.4 23.0 24.0 23.5 24.2 23.9 23.9 Combined ratio Allstate brand 75.9 97.0 93.4 71.0 72.5 92.3 78.7 88.7 81.1 Esurance brand 300.0 350.0 187.5 185.7 280.0 250.0 33.3 286.2 208.3 Encompass brand 90.8 100.0 97.6 76.6 87.4 123.0 87.4 96.2 99.2 Allstate Protection 78.2 98.6 94.1 71.8 74.1 94.9 79.2 90.3 82.7 Effect of catastrophe losses on combined ratio Allstate brand 15.4 38.3 34.2 15.0 12.4 32.1 13.9 29.3 19.5 Esurance brand 45.5 50.0 12.5 14.3 20.0 25.0 - 37.9 16.6 Encompass brand 17.6 24.0 30.7 9.7 11.8 41.3 14.2 24.2 22.4 Allstate Protection 15.7 37.4 33.9 14.6 12.4 32.7 13.9 29.0 19.7 Effect of prior year reserve reestimates on combined ratio Allstate brand (0.3) 1.1 (0.5) (0.5) (0.9) - 0.2 0.1 (0.2) Esurance brand - - - - - - - - - Encompass brand 1.7 - 0.8 (4.9) - 2.3 (1.6) 0.8 0.2 Allstate Protection (0.2) 1.0 (0.4) (0.8) (0.8) 0.2 0.1 0.1 (0.2) Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand 0.3 1.0 (0.3) (0.5) (0.1) 0.5 (0.1) 0.4 0.2 Esurance brand - - - - - - - - - Encompass brand 0.8 (0.8) 1.6 (0.8) 1.6 - (1.6) 0.5 - Allstate Protection 0.3 0.8 (0.2) (0.5) 0.1 0.4 (0.1) 0.3 0.1 THE ALLSTATE CORPORATION HOMEOWNERS PROFITABILITY MEASURES Nine months endedThree months ended

25 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, ($ in millions) 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Allstate brand $ 447 $ 428 $ 353 $ 376 $ 429 $ 424 $ 357 $ 1,228 $ 1,210 Esurance brand 2 2 2 1 3 1 2 6 6 Encompass brand 25 27 21 25 28 29 24 73 81 474 457 376 402 460 454 383 1,307 1,297 Net premiums earned Allstate brand $ 399 $ 397 $ 393 $ 395 $ 396 $ 395 $ 391 $ 1,189 $ 1,182 Esurance brand 2 2 2 2 2 1 2 6 5 Encompass brand 25 25 26 27 27 27 27 76 81 426 424 421 424 425 423 420 1,271 1,268 Incurred losses Allstate brand $ 236 $ 256 $ 261 $ 216 $ 241 $ 259 $ 244 $ 753 $ 744 Esurance brand 2 1 1 1 1 1 1 4 3 Encompass brand 17 16 31 27 23 27 23 64 73 255 273 293 244 265 287 268 821 820 Expenses Allstate brand $ 113 $ 106 $ 103 $ 101 $ 109 $ 105 $ 105 $ 322 $ 319 Esurance brand - 1 1 1 - - 2 2 2 Encompass brand 8 7 7 7 8 7 8 22 23 121 114 111 109 117 112 115 346 344 Underwriting income (loss) Allstate brand $ 50 $ 35 $ 29 $ 78 $ 46 $ 31 $ 42 $ 114 $ 119 Esurance brand - - - - 1 - (1) - - Encompass brand - 2 (12) (7) (4) (7) (4) (10) (15) 50 37 17 71 43 24 37 104 104 Loss ratio Allstate brand 59.2 64.5 66.4 54.7 60.9 65.6 62.4 63.3 62.9 Esurance brand 100.0 50.0 50.0 50.0 50.0 100.0 50.0 66.7 60.0 Encompass brand 68.0 64.0 119.3 100.0 85.2 100.0 85.2 84.2 90.1 Allstate Protection 59.9 64.4 69.6 57.6 62.4 67.8 63.8 64.6 64.7 Expense ratio Allstate brand 28.3 26.7 26.2 25.6 27.5 26.6 26.9 27.1 27.0 Esurance brand - 50.0 50.0 50.0 - - 100.0 33.3 40.0 Encompass brand 32.0 28.0 26.9 25.9 29.6 25.9 29.6 29.0 28.4 Allstate Protection 28.4 26.9 26.4 25.7 27.5 26.5 27.4 27.2 27.1 Combined ratio Allstate brand 87.5 91.2 92.6 80.3 88.4 92.2 89.3 90.4 89.9 Esurance brand 100.0 100.0 100.0 100.0 50.0 100.0 150.0 100.0 100.0 Encompass brand 100.0 92.0 146.2 125.9 114.8 125.9 114.8 113.2 118.5 Allstate Protection 88.3 91.3 96.0 83.3 89.9 94.3 91.2 91.8 91.8 Effect of catastrophe losses on combined ratio Allstate brand 6.0 15.6 16.0 8.4 4.5 11.9 7.4 12.5 8.0 Esurance brand - - - - - - - - - Encompass brand 4.0 8.0 3.8 7.4 3.7 7.4 7.4 5.3 6.2 Allstate Protection 5.9 15.1 15.2 8.3 4.5 11.6 7.4 12.0 7.8 Effect of prior year reserve reestimates on combined ratio Allstate brand (0.8) (1.7) (1.5) (0.3) 1.8 1.1 (0.5) (1.3) 0.8 Esurance brand - - - - - - - - - Encompass brand 4.0 (16.0) 42.3 3.7 14.8 7.4 11.1 10.5 11.1 Allstate Protection (0.5) (2.6) 1.2 - 2.6 1.4 0.2 (0.6) 1.4 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand (0.3) - - (0.3) - - (0.3) (0.1) - Esurance brand - - - - - - - - - Encompass brand - - (3.9) - (3.7) 3.7 - (1.3) - Allstate Protection (0.3) - (0.3) (0.2) (0.2) 0.3 (0.3) (0.1) (0.1) (1) Other personal lines include renter, condominium, landlord and other personal lines products. THE ALLSTATE CORPORATION OTHER PERSONAL LINES PROFITABILITY MEASURES (1) Nine months endedThree months ended

26 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, ($ in millions) 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 123 $ 135 $ 126 $ 126 $ 124 $ 138 $ 128 $ 384 $ 390 Net premiums earned $ 127 $ 127 $ 129 $ 129 $ 128 $ 128 $ 125 $ 383 $ 381 Incurred losses $ 112 $ 135 $ 119 $ 100 $ 97 $ 105 $ 98 $ 366 $ 300 Expenses $ 34 $ 35 $ 38 $ 36 $ 36 $ 40 $ 38 $ 107 $ 114 Underwriting loss $ (19) $ (43) $ (28) $ (7) $ (5) $ (17) $ (11) $ (90) $ (33) Loss ratio 88.2 106.3 92.2 77.5 75.8 82.0 78.4 95.6 78.8 Expense ratio 26.8 27.6 29.5 27.9 28.1 31.3 30.4 27.9 29.9 Combined ratio 115.0 133.9 121.7 105.4 103.9 113.3 108.8 123.5 108.7 Effect of catastrophe losses on combined ratio 5.5 9.5 7.0 4.6 2.3 9.4 4.0 7.3 5.3 Effect of prior year reserve reestimates on combined ratio 10.3 18.1 15.5 - (9.3) 3.1 8.0 14.6 0.5 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio - 0.8 2.4 0.8 - 2.3 0.8 1.0 1.0 (1) Commercial lines are all Allstate Brand products. THE ALLSTATE CORPORATION COMMERCIAL LINES PROFITABILITY MEASURES (1) Nine months endedThree months ended

27 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, ($ in millions) 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 185 $ 183 $ 183 $ 168 $ 205 $ 199 $ 184 $ 551 $ 588 Net premiums earned $ 150 $ 142 $ 143 $ 135 $ 148 $ 137 $ 141 $ 435 $ 426 Incurred losses $ 69 $ 64 $ 61 $ 57 $ 71 $ 66 $ 69 $ 194 $ 206 Expenses $ 74 $ 74 $ 68 $ 72 $ 61 $ 63 $ 69 $ 216 $ 193 Underwriting income $ 7 $ 4 $ 14 $ 6 $ 16 $ 8 $ 3 $ 25 $ 27 Loss ratio 46.0 45.1 42.7 42.2 48.0 48.2 49.0 44.6 48.4 Expense ratio 49.3 52.1 47.5 53.4 41.2 46.0 48.9 49.7 45.3 Combined ratio 95.3 97.2 90.2 95.6 89.2 94.2 97.9 94.3 93.7 Effect of catastrophe losses on combined ratio - - - - - - - - - Effect of prior year reserve reestimates on combined ratio 2.0 - - - 0.7 0.7 - 0.7 0.5 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio - - - - - - - - - Effect of amortization of purchased intangible assets 0.6 0.7 0.7 0.8 0.7 0.8 0.7 0.7 0.7 (1) Other business lines include Allstate Roadside Services and Allstate Dealer Services. THE ALLSTATE CORPORATION OTHER BUSINESS LINES PROFITABILITY MEASURES (1) Nine months endedThree months ended

28 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Auto Allstate brand underlying combined ratio 95.9 97.8 95.9 97.6 98.1 97.8 95.6 96.5 97.2 Effect of catastrophe losses on combined ratio 3.1 4.1 2.9 1.1 0.5 3.2 0.3 3.4 1.3 Effect of prior year non-catastrophe reserve reestimates on combined ratio - (0.7) 0.2 (0.1) 0.2 0.4 0.9 (0.2) 0.5 Allstate brand combined ratio 99.0 101.2 99.0 98.6 98.8 101.4 96.8 99.7 99.0 Esurance brand underlying combined ratio 102.0 100.0 103.6 104.1 103.6 105.5 117.0 101.8 108.6 Effect of catastrophe losses on combined ratio 2.2 2.2 0.5 0.5 0.5 1.8 - 1.7 0.8 Effect of prior year non-catastrophe reserve reestimates on combined ratio (1.0) (1.0) (1.0) (1.3) (1.5) (0.8) (1.0) (1.0) (1.1) Effect of amortization of purchased intangible assets on combined ratio 1.5 1.8 1.5 2.3 2.0 2.3 2.3 1.6 2.2 Esurance brand combined ratio 104.7 103.0 104.6 105.6 104.6 108.8 118.3 104.1 110.5 Encompass brand underlying combined ratio 101.9 105.1 103.1 104.9 101.2 106.7 103.0 103.4 103.6 Effect of catastrophe losses on combined ratio 3.3 1.9 1.3 0.6 0.6 3.0 - 2.1 1.2 Effect of prior year non-catastrophe reserve reestimates on combined ratio (1.3) 3.8 1.3 (0.6) 7.9 (1.2) (4.2) 1.3 0.9 Encompass brand combined ratio 103.9 110.8 105.7 104.9 109.7 108.5 98.8 106.8 105.7 Homeowners Allstate brand underlying combined ratio 61.1 58.6 59.4 56.0 60.9 60.7 64.5 59.7 62.0 Effect of catastrophe losses on combined ratio 15.4 38.3 34.2 15.0 12.4 32.1 13.9 29.3 19.5 Effect of prior year non-catastrophe reserve reestimates on combined ratio (0.6) 0.1 (0.2) - (0.8) (0.5) 0.3 (0.3) (0.4) Allstate brand combined ratio 75.9 97.0 93.4 71.0 72.5 92.3 78.7 88.7 81.1 Encompass brand underlying combined ratio 72.3 75.2 67.7 71.0 77.2 79.4 73.2 71.7 76.6 Effect of catastrophe losses on combined ratio 17.6 24.0 30.7 9.7 11.8 41.3 14.2 24.2 22.4 Effect of prior year non-catastrophe reserve reestimates on combined ratio 0.9 0.8 (0.8) (4.1) (1.6) 2.3 - 0.3 0.2 Encompass brand combined ratio 90.8 100.0 97.6 76.6 87.4 123.0 87.4 96.2 99.2 Other Personal Lines Allstate brand underlying combined ratio 82.0 77.3 78.1 71.9 82.1 79.2 82.1 79.1 81.1 Effect of catastrophe losses on combined ratio 6.0 15.6 16.0 8.4 4.5 11.9 7.4 12.5 8.0 Effect of prior year non-catastrophe reserve reestimates on combined ratio (0.5) (1.7) (1.5) - 1.8 1.1 (0.2) (1.2) 0.8 Allstate brand combined ratio 87.5 91.2 92.6 80.3 88.4 92.2 89.3 90.4 89.9 Encompass brand underlying combined ratio 92.0 100.0 96.2 114.8 92.6 114.8 96.3 96.1 101.2 Effect of catastrophe losses on combined ratio 4.0 8.0 3.8 7.4 3.7 7.4 7.4 5.3 6.2 Effect of prior year non-catastrophe reserve reestimates on combined ratio 4.0 (16.0) 46.2 3.7 18.5 3.7 11.1 11.8 11.1 Encompass brand combined ratio 100.0 92.0 146.2 125.9 114.8 125.9 114.8 113.2 118.5 THE ALLSTATE CORPORATION AUTO, HOMEOWNERS AND OTHER PERSONAL LINES UNDERLYING COMBINED RATIOS Nine months endedThree months ended

29 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 Auto Annualized average premium (1) $ 966 $ 946 $ 927 $ 913 $ 903 $ 893 $ 885 Underlying combined ratios 95.9 97.8 95.9 97.6 98.1 97.8 95.6 Average underlying loss (incurred pure premium) and expense * $ 926 $ 925 $ 889 $ 891 $ 886 $ 874 $ 846 Homeowners Annualized average premium (1) $ 1,102 $ 1,098 $ 1,091 $ 1,085 $ 1,079 $ 1,071 $ 1,067 Underlying combined ratios 61.1 58.6 59.4 56.0 60.9 60.7 64.5 Average underlying loss (incurred pure premium) and expense $ 673 $ 643 $ 648 $ 607 $ 657 $ 650 $ 688 (1) THE ALLSTATE CORPORATION Calculated by annualizing net earned premium reported in the quarter divided by policies in force at quarter end. ALLSTATE BRAND AUTO AND HOMEOWNERS UNDERLYING LOSS AND EXPENSE Three months ended

30 Annual impact of Effect of rate changes Earned Incurred Catastrophe catastrophes Number of Number of on state specific Primary Exposure Groupings (1) premiums losses Loss ratios losses on loss ratio catastrophes locations premiums written Florida $ 77 $ 56 72.7% $ 8 10.4% Other hurricane exposure states 2,915 2,027 69.5% 1,039 35.6% Total hurricane exposure states (2) 2,992 2,083 69.6% 1,047 35.0% 14 6.8% Other catastrophe exposure states (4) 2,446 1,529 62.5% 529 21.6% 26 -1.9% (5) Total $ 5,438 $ 3,612 66.4% $ 1,576 29.0% 75 40 2.3% (1) Basis of Presentation (2) (3) (4) (5) Includes the impact of a rate decrease in California for Allstate brand in first quarter 2016. Excluding California, the total state specific rate changes for Allstate brand were 4.1% for the nine months ended September 2016. THE ALLSTATE CORPORATION HOMEOWNERS SUPPLEMENTAL INFORMATION ($ in millions) Represents the impact in the locations where rate changes were approved during the year as a percentage of total prior year-end premiums written in those locations. This homeowners supplemental information schedule displays financial results for the homeowners business (defined to include standard homeowners, scheduled personal property and other than primary residence lines). Each state in which the Company writes business has been categorized into one of two exposure groupings (Hurricane or Other). Hurricane exposure states are comprised of those states in which hurricanes are the primary catastrophe exposure. However, the catastrophe losses for these states include losses due to other kinds of catastrophes. A catastrophe is defined by Allstate as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Premium rate changes (3) Hurricane exposure states include the following coastal locations: Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and Washington, D.C. Nine months ended September 30, 2016 Includes Canada.

31 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Allstate brand Auto $ 150 $ 195 $ 137 $ 50 $ 22 $ 143 $ 13 $ 482 $ 178 Homeowners 259 644 574 251 207 528 227 1,477 962 Other personal lines 24 62 63 33 18 47 29 149 94 Commercial lines 7 12 9 6 3 12 5 28 20 Other business lines - - - - - - - - - Total 440 913 783 340 250 730 274 2,136 1,254 Esurance brand Auto 9 9 2 2 2 7 - 20 9 Homeowners 5 5 1 1 1 1 - 11 2 Other personal lines - - - - - - - - - Total 14 14 3 3 3 8 - 31 11 Encompass brand Auto 5 3 2 1 1 5 - 10 6 Homeowners 21 29 38 12 15 52 18 88 85 Other personal lines 1 2 1 2 1 2 2 4 5 Total 27 34 41 15 17 59 20 102 96 Allstate Protection $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,269 $ 1,361 Allstate Protection Auto $ 164 $ 207 $ 141 $ 53 $ 25 $ 155 $ 13 $ 512 $ 193 Homeowners 285 678 613 264 223 581 245 1,576 1,049 Other personal lines 25 64 64 35 19 49 31 153 99 Commercial lines 7 12 9 6 3 12 5 28 20 Other business lines - - - - - - - - - $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,269 $ 1,361 THE ALLSTATE CORPORATION CATASTROPHE LOSSES BY BRAND ($ in millions) Nine months endedThree months ended

32 Premiums Total Total Effect on the earned catastrophe catastrophe Property-Liability Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year year-to-date losses by year losses by year combined ratio 2007 2.4 6.3 5.0 7.0 5.2 $ 27,233 $ 1,409 $ 1,336 4.9 2008 8.4 10.3 26.8 3.9 12.4 26,967 3,342 1,876 7.0 2009 7.8 12.5 6.2 5.0 7.9 26,194 2,069 2,159 8.2 2010 10.0 9.8 5.9 8.3 8.5 25,957 2,207 2,272 8.8 2011 5.2 36.2 16.7 1.0 14.7 25,942 3,815 3,298 12.7 2012 3.9 12.3 3.1 15.7 8.8 26,737 2,345 1,324 5.0 2013 5.3 9.4 1.8 1.7 4.5 27,618 1,251 1,352 4.9 2014 6.3 13.0 7.1 1.3 6.9 28,929 1,993 2,000 6.9 2015 4.0 10.6 3.5 4.7 5.7 30,309 1,719 1,749 5.8 2016 10.7 12.3 6.1 9.7 23,406 2,269 2,254 9.6 Average 6.4 13.1 8.1 5.3 8.3 7.3 Effect of all catastrophe losses on the Property-Liability combined ratio catastrophe losses relating to Excludes the effect of THE ALLSTATE CORPORATION PROPERTY-LIABILITY EFFECT OF CATASTROPHE LOSSES ON THE COMBINED RATIO ($ in millions) earthquakes and hurricanes

33 Average Number Claims and Combined catastrophe Size of catastrophe of events claims expense ratio impact loss per event Greater than $250 million - - % $ - - % - $ - $101 million to $250 million 1 2.9 105 21.8 1.4 105 $50 million to $100 million 1 2.9 97 20.2 1.2 97 Less than $50 million 33 94.2 290 60.3 3.7 9 Total 35 100.0 % 492 102.3 6.3 14 Prior year reserve reestimates 3 0.6 - Prior quarter reserve reestimates (14) (2.9) (0.2) Total catastrophe losses $ 481 100.0 % 6.1 Average Number Claims and Combined catastrophe Size of catastrophe of events claims expense ratio impact loss per event Greater than $250 million 2 2.7 % $ 626 27.6 % 2.7 $ 313 $101 million to $250 million 2 2.7 291 12.8 1.2 146 $50 million to $100 million 5 6.6 362 15.9 1.5 72 Less than $50 million 66 88.0 977 43.1 4.2 15 Total 75 100.0 % 2,256 99.4 9.6 30 Prior year reserve reestimates 13 0.6 0.1 Total catastrophe losses $ 2,269 100.0 % 9.7 Nine months ended September 30, 2016 THE ALLSTATE CORPORATION CATASTROPHE BY SIZE OF EVENT ($ in millions) Three months ended September 30, 2016

34 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Prior Year Reserve Reestimates (1) Auto $ (10) $ (36) $ 5 $ (19) $ 14 $ 11 $ 24 $ (41) $ 49 Homeowners (4) 19 (7) (14) (15) 4 1 8 (10) Other personal lines (2) (11) 5 - 11 6 1 (8) 18 Commercial lines 13 23 20 - (12) 4 10 56 2 Other business lines 3 - - - 1 1 - 3 2 Allstate Protection - (5) 23 (33) (1) 26 36 18 61 Discontinued Lines and Coverages 99 2 1 2 48 2 1 102 51 Property-Liability $ 99 $ (3) $ 24 $ (31) $ 47 $ 28 $ 37 $ 120 $ 112 Allstate brand (2) $ 3 $ (2) $ 13 $ (22) $ (13) $ 26 $ 47 $ 14 $ 60 Esurance brand (2) (4) (4) (4) (5) (5) (3) (4) (12) (12) Encompass brand (2) 1 1 14 (6) 17 3 (7) 16 13 Allstate Protection (2) $ - $ (5) $ 23 $ (33) $ (1) $ 26 $ 36 $ 18 $ 61 Effect of Prior Year Reserve Reestimates on Combined Ratio (1)(3) Auto (0.1) (0.5) - (0.2) 0.2 0.2 0.3 (0.2) 0.2 Homeowners (0.1) 0.3 (0.1) (0.2) (0.2) - - - - Other personal lines - (0.1) - - 0.1 0.1 - - 0.1 Commercial lines 0.2 0.3 0.3 - (0.1) - 0.2 0.3 - Other business lines - - - - - - - - - Allstate Protection - - 0.2 (0.4) - 0.3 0.5 0.1 0.3 Discontinued Lines and Coverages 1.3 - 0.1 - 0.6 - - 0.4 0.2 Property-Liability 1.3 - 0.3 (0.4) 0.6 0.3 0.5 0.5 0.5 Allstate brand (2) - - 0.1 (0.3) (0.2) 0.3 0.6 0.1 0.3 Esurance brand (2) - - (0.1) - - - - (0.1) (0.1) Encompass brand (2) - - 0.2 (0.1) 0.2 - (0.1) 0.1 0.1 Allstate Protection (2) - - 0.2 (0.4) - 0.3 0.5 0.1 0.3 (1) (2) (3) Calculated using Property-Liability premiums earned for the respective period. THE ALLSTATE CORPORATION PROPERTY-LIABILITY PRIOR YEAR RESERVE REESTIMATES ($ in millions) Nine months ended Favorable reserve reestimates are shown in parentheses. Unfavorable (favorable) reserve reestimates included in catastrophe losses for Allstate brand, Esurance brand, Encompass brand and Allstate Protection totaled $2 million, $0 million, $1 million, $3 million and $(4) million, $1 million, $1 million and $(2) million, respectively, in the three months ended September 30, 2016 and 2015, respectively. Unfavorable (favorable) reserve reestimates included in catastrophe losses for Allstate brand, Esurance brand, Encompass brand and Allstate Protection totaled $13 million, $0 million, $0 million, $13 million and $1 million, $1 million, $(1) million and $1 million, respectively, in the nine months ended September 30, 2016 and 2015, respectively. Three months ended

35 Sept. 30, June 30, March 31, 2016 2016 2016 2015 2014 2013 2012 2011 (net of reinsurance) Asbestos claims (1) Beginning reserves $ 890 $ 907 $ 960 $ 1,014 $ 1,017 $ 1,026 $ 1,078 $ 1,100 Incurred claims and claims expense 67 - - 39 87 74 26 26 Claims and claims expense paid (21) (17) (53) (93) (90) (83) (78) (48) Ending reserves $ 936 $ 890 $ 907 $ 960 $ 1,014 $ 1,017 $ 1,026 $ 1,078 Claims and claims expense paid as a percent of ending reserves 2.2% 1.9% 5.8% 9.7% 8.9% 8.2% 7.6% 4.5% Environmental claims (1) Beginning reserves $ 173 $ 177 $ 179 $ 203 $ 208 $ 193 $ 185 $ 201 Incurred claims and claims expense 23 - - 1 15 30 22 - Claims and claims expense paid (6) (4) (2) (25) (20) (15) (14) (16) Ending reserves $ 190 $ 173 $ 177 $ 179 $ 203 $ 208 $ 193 $ 185 Claims and claims expense paid as a percent of ending reserves 3.2% 2.3% 1.1% 14.0% 9.9% 7.2% 7.3% 8.6% (1) The 3-year survival ratio for the combined environmental and asbestos claims was 9.2, 10.4, 12.2, 14.4 and 14.3 for annualized nine-months of 2016 and year-end 2015, 2014, 2013, and 2012, respectively, and is calculated by taking the ending reserves divided by net payments made during the year. THE ALLSTATE CORPORATION ASBESTOS AND ENVIRONMENTAL RESERVES ($ in millions) Twelve months ended December 31,Three months ended

36 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Auto $ 4,940 $ 4,767 $ 4,746 $ 4,576 $ 4,746 $ 4,588 $ 4,535 $ 14,453 $ 13,869 Homeowners 1,869 1,831 1,392 1,634 1,879 1,819 1,379 5,092 5,077 Landlord 141 133 122 137 143 138 128 396 409 Renter 84 75 67 65 84 73 67 226 224 Condominium 70 67 53 58 64 63 51 190 178 Other 152 153 111 116 138 150 111 416 399 Other personal lines 447 428 353 376 429 424 357 1,228 1,210 Commercial lines 123 135 126 126 124 138 128 384 390 Total 7,379 7,161 6,617 6,712 7,178 6,969 6,399 21,157 20,546 Net premiums earned Auto $ 4,793 $ 4,745 $ 4,667 $ 4,638 $ 4,597 $ 4,524 $ 4,432 $ 14,205 $ 13,553 Homeowners 1,683 1,684 1,678 1,674 1,663 1,645 1,631 5,045 4,939 Other personal lines 399 397 393 395 396 395 391 1,189 1,182 Commercial lines 127 127 129 129 128 128 125 383 381 Total 7,002 6,953 6,867 6,836 6,784 6,692 6,579 20,822 20,055 Incurred losses Auto $ 3,610 $ 3,634 $ 3,519 $ 3,495 $ 3,455 $ 3,431 $ 3,175 $ 10,763 $ 10,061 Homeowners 893 1,260 1,190 816 820 1,147 894 3,343 2,861 Other personal lines 236 256 261 216 241 259 244 753 744 Commercial lines 112 135 119 100 97 105 98 366 300 Total 4,851 5,285 5,089 4,627 4,613 4,942 4,411 15,225 13,966 Expenses Auto $ 1,134 $ 1,168 $ 1,103 $ 1,077 $ 1,086 $ 1,155 $ 1,113 $ 3,405 $ 3,354 Homeowners 384 373 377 372 385 372 389 1,134 1,146 Other personal lines 113 106 103 101 109 105 105 322 319 Commercial lines 34 35 38 36 36 40 38 107 114 Total 1,665 1,682 1,621 1,586 1,616 1,672 1,645 4,968 4,933 Underwriting income (loss) Auto $ 49 $ (57) $ 45 $ 66 $ 56 $ (62) $ 144 $ 37 $ 138 Homeowners 406 51 111 486 458 126 348 568 932 Other personal lines 50 35 29 78 46 31 42 114 119 Commercial lines (19) (43) (28) (7) (5) (17) (11) (90) (33) Total 486 (14) 157 623 555 78 523 629 1,156 Loss ratio 69.3 76.0 74.1 67.7 68.0 73.8 67.1 73.1 69.6 Expense ratio 23.8 24.2 23.6 23.2 23.8 25.0 25.0 23.9 24.6 Combined ratio 93.1 100.2 97.7 90.9 91.8 98.8 92.1 97.0 94.2 Effect of catastrophe losses on combined ratio 6.3 13.1 11.4 5.0 3.7 10.9 4.2 10.3 6.3 Effect of prior year reserve reestimates on combined ratio - - 0.2 (0.3) (0.2) 0.3 0.7 0.1 0.2 Underlying combined ratio 86.8 87.3 86.1 86.0 88.3 87.7 87.1 86.7 87.7 Effect of catastrophe losses 6.3 13.1 11.4 5.0 3.7 10.9 4.2 10.3 6.3 Effect of prior year non-catastrophe reserve reestimates - (0.2) 0.2 (0.1) (0.2) 0.2 0.8 - 0.2 Combined ratio 93.1 100.2 97.7 90.9 91.8 98.8 92.1 97.0 94.2 Policies in Force (in thousands) Auto 19,852 20,061 20,145 20,326 20,367 20,258 20,036 19,852 20,367 Homeowners 6,109 6,135 6,152 6,174 6,163 6,141 6,114 6,109 6,163 Other personal lines 4,202 4,203 4,208 4,219 4,208 4,170 4,135 4,202 4,208 Commercial lines 296 308 318 324 328 330 326 296 328 Excess and surplus 22 23 24 25 26 26 27 22 26 Total 30,481 30,730 30,847 31,068 31,092 30,925 30,638 30,481 31,092 (1) Allstate Personal Lines comprise Allstate brand auto, homeowners, other personal lines and commercial lines. Allstate Protection segment comprises Allstate Personal Lines and Emerging Businesses. THE ALLSTATE CORPORATION ALLSTATE PERSONAL LINES - AUTO, HOMEOWNERS, OTHER PERSONAL LINES AND COMMERCIAL LINES PROFITABILITY MEASURES (1) ($ in millions) Nine months endedThree months ended

37 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Esurance $ 446 $ 392 $ 452 $ 378 $ 423 $ 371 $ 441 $ 1,290 $ 1,235 Encompass 299 315 263 293 331 338 282 877 951 Allstate Roadside Services 79 77 77 70 87 88 91 233 266 Allstate Dealer Services 106 106 106 98 118 111 93 318 322 Other business lines 185 183 183 168 205 199 184 551 588 Total 930 890 898 839 959 908 907 2,718 2,774 Net premiums earned Esurance $ 418 $ 415 $ 404 $ 400 $ 399 $ 402 $ 387 $ 1,237 $ 1,188 Encompass 299 304 309 313 319 318 319 912 956 Other business lines 150 142 143 135 148 137 141 435 426 Total 867 861 856 848 866 857 847 2,584 2,570 Incurred losses Esurance $ 326 $ 319 $ 294 $ 299 $ 290 $ 304 $ 299 $ 939 $ 893 Encompass 208 231 239 214 233 273 213 678 719 Other business lines 69 64 61 57 71 66 69 194 206 Total 603 614 594 570 594 643 581 1,811 1,818 Expenses Esurance $ 133 $ 133 $ 135 $ 129 $ 135 $ 139 $ 157 $ 401 $ 431 Encompass 86 88 88 85 90 95 92 262 277 Other business lines 74 74 68 72 61 63 69 216 193 Answer Financial 2 2 1 2 1 3 2 5 6 Total 295 297 292 288 287 300 320 884 907 Underwriting income (loss) Esurance $ (41) $ (37) $ (25) $ (28) $ (26) $ (41) $ (69) $ (103) $ (136) Encompass 5 (15) (18) 14 (4) (50) 14 (28) (40) Other business lines 7 4 14 6 16 8 3 25 27 Answer Financial (2) (2) (1) (2) (1) (3) (2) (5) (6) Total (31) (50) (30) (10) (15) (86) (54) (111) (155) Loss ratio 69.6 71.3 69.4 67.2 68.6 75.0 68.6 70.1 70.7 Expense ratio 34.0 34.5 34.1 34.0 33.1 35.0 37.8 34.2 35.3 Combined ratio 103.6 105.8 103.5 101.2 101.7 110.0 106.4 104.3 106.0 Effect of catastrophe losses on combined ratio 4.7 5.6 5.1 2.1 2.3 7.8 2.4 5.1 4.2 Effect of prior year reserve reestimates on combined ratio - (0.3) 1.2 (1.3) 1.5 0.1 (1.3) 0.3 0.1 Effect of amortization of purchased intangible assets 1.1 1.0 1.0 1.6 1.4 1.5 1.4 1.1 1.4 Underlying combined ratio 97.9 99.3 96.3 98.7 96.8 100.7 103.5 97.8 100.3 Effect of catastrophe losses 4.7 5.6 5.1 2.1 2.3 7.8 2.4 5.1 4.2 Effect of prior year non-catastrophe reserve reestimates (0.1) (0.1) 1.1 (1.2) 1.2 - (0.9) 0.3 0.1 Effect of amortization of purchased intangible assets 1.1 1.0 1.0 1.6 1.4 1.5 1.4 1.1 1.4 Combined ratio 103.6 105.8 103.5 101.2 101.7 110.0 106.4 104.3 106.0 Policies in Force (in thousands) Esurance 1,494 1,500 1,511 1,491 1,503 1,522 1,527 1,494 1,503 Encompass 1,055 1,099 1,138 1,172 1,207 1,240 1,259 1,055 1,207 Other business lines 797 824 856 894 920 937 941 797 920 Total 3,346 3,423 3,505 3,557 3,630 3,699 3,727 3,346 3,630 (1) Emerging businesses include Esurance, Encompass, Allstate Roadside Services, Allstate Dealer Services, Ivantage and Answer Financial. THE ALLSTATE CORPORATION EMERGING BUSINESSES - ESURANCE, ENCOMPASS, OTHER BUSINESS LINES AND ANSWER FINANCIAL PROFITABILITY MEASURES (1) ($ in millions) Nine months endedThree months ended

38 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Premiums $ 361 $ 353 $ 354 $ 339 $ 329 $ 326 $ 328 $ 1,068 $ 983 Contract charges 210 211 212 208 209 210 209 633 628 Net investment income 427 435 419 420 491 489 484 1,281 1,464 Contract benefits (484) (454) (455) (456) (460) (446) (441) (1,393) (1,347) Interest credited to contractholder funds (183) (179) (184) (186) (191) (191) (192) (546) (574) Amortization of deferred policy acquisition costs (68) (68) (71) (65) (61) (62) (69) (207) (192) Operating costs and expenses (126) (121) (123) (119) (112) (118) (123) (370) (353) Restructuring and related charges - (1) - 3 (1) (2) - (1) (3) Income tax expense on operations (43) (56) (48) (46) (66) (67) (62) (147) (195) Operating income 94 120 104 98 138 139 134 318 411 Realized capital gains and losses, after-tax (14) - (32) (62) 125 38 72 (46) 235 Valuation changes on embedded derivatives that are not hedged, after-tax - (4) (4) 2 (2) 4 (5) (8) (3) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (1) (1) (1) - (1) (2) - (3) (3) Gain (loss) on disposition of operations, after-tax 1 1 1 1 2 - (1) 3 1 Change in accounting for investments in qualified affordable housing projects, after-tax - - - - - - (17) - (17) Net income applicable to common shareholders $ 80 $ 116 $ 68 $ 39 $ 262 $ 179 $ 183 $ 264 $ 624 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL RESULTS ($ in millions) Nine months endedThree months ended

39 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 Return on Attributed Equity Numerator: Net income applicable to common shareholders (1) $ 303 $ 485 $ 548 $ 663 $ 832 $ 686 $ 652 Denominator: Beginning attributed equity (2) $ 7,475 $ 7,621 $ 7,920 $ 7,672 $ 7,356 $ 7,262 $ 7,812 Ending attributed equity 8,205 8,055 7,680 7,350 7,475 7,621 7,920 Average attributed equity (3) $ 7,840 $ 7,838 $ 7,800 $ 7,511 $ 7,416 $ 7,442 $ 7,866 Return on attributed equity 3.9 % 6.2 % 7.0 % 8.8 % 11.2 % 9.2 % 8.3 % Operating Income Return on Attributed Equity Numerator: Operating income (1) $ 416 $ 460 $ 479 $ 509 $ 539 $ 526 $ 552 Denominator: Beginning attributed equity (2) $ 7,475 $ 7,621 $ 7,920 $ 7,672 $ 7,356 $ 7,262 $ 7,812 Unrealized net capital gains and losses 722 1,030 1,499 1,420 1,305 1,285 1,280 Adjusted beginning attributed equity 6,753 6,591 6,421 6,252 6,051 5,977 6,532 Ending attributed equity 8,205 8,055 7,680 7,350 7,475 7,621 7,920 Unrealized net capital gains and losses 1,150 1,077 824 556 722 1,030 1,499 Adjusted ending attributed equity 7,055 6,978 6,856 6,794 6,753 6,591 6,421 Average adjusted attributed equity (3) $ 6,904 $ 6,785 $ 6,639 $ 6,523 $ 6,402 $ 6,284 $ 6,477 Operating income return on attributed equity 6.0 % 6.8 % 7.2 % 7.8 % 8.4 % 8.4 % 8.5 % (1) (2) (3) Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company and the applicable equity for Allstate Financial Insurance Holdings Corporation. Average attributed equity and average adjusted attributed equity are determined using a two-point average, with the beginning and ending attributed equity and adjusted attributed equity, respectively, for the twelve-month period as data points. THE ALLSTATE CORPORATION ALLSTATE FINANCIAL RETURN ON ATTRIBUTED EQUITY ($ in millions) Net income applicable to common shareholders and operating income reflect a trailing twelve-month period. Twelve months ended

40 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 PREMIUMS AND CONTRACT CHARGES - BY PRODUCT Underwritten Products Traditional life insurance premiums $ 145 $ 139 $ 138 $ 144 $ 135 $ 131 $ 132 $ 422 $ 398 Accident and health insurance premiums 216 214 216 195 194 195 196 646 585 Interest-sensitive life insurance contract charges 206 208 209 204 205 207 206 623 618 567 561 563 543 534 533 534 1,691 1,601 Annuities Immediate annuities with life contingencies premiums - - - - - - - - - Other fixed annuity contract charges 4 3 3 4 4 3 3 10 10 4 3 3 4 4 3 3 10 10 Total $ 571 $ 564 $ 566 $ 547 $ 538 $ 536 $ 537 $ 1,701 $ 1,611 PREMIUMS AND CONTRACT CHARGES - BY DISTRIBUTION CHANNEL Allstate agencies $ 308 $ 306 $ 305 $ 304 $ 300 $ 297 $ 297 $ 919 $ 894 Workplace enrolling agents 238 232 233 215 212 209 210 703 631 Other (1) 25 26 28 28 26 30 30 79 86 Total $ 571 $ 564 $ 566 $ 547 $ 538 $ 536 $ 537 $ 1,701 $ 1,611 PROPRIETARY LIFE INSURANCE POLICIES SOLD BY ALLSTATE AGENCIES (2)(3) 27,481 29,839 25,458 39,701 16,402 34,494 30,091 82,778 80,987 ALLSTATE BENEFITS NEW BUSINESS WRITTEN PREMIUMS (4) $ 69 $ 70 $ 82 $ 179 $ 69 $ 64 $ 65 $ 221 $ 198 (1) Primarily represents independent master brokerage agencies. (2) Policies sold reduced by lapses within twelve months of sale. (3) (4) New business written premiums reflect annualized premiums at initial customer enrollment (including new accounts and new employees or policies of existing accounts), reduced by an estimate for certain policies that are expected to lapse. A significant portion of Allstate Benefits business is seasonally written in the fourth quarter during many clients’ annual employee benefits enrollment. Beginning on August 1, 2015, sales are measured at policy issuance rather than application submission. This change led to a lag in the recognition of policies sold which impacted the third quarter 2015 results. Three months ended THE ALLSTATE CORPORATION ALLSTATE FINANCIAL PREMIUMS AND CONTRACT CHARGES ($ in millions) Nine months ended

41 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Contractholders funds, beginning balance $ 20,845 $ 21,092 $ 21,295 $ 21,559 $ 21,968 $ 22,267 $ 22,529 $ 21,295 $ 22,529 Deposits Interest-sensitive life insurance 251 251 252 251 251 253 249 754 753 Fixed annuities 40 40 44 39 56 53 51 124 160 Total deposits 291 291 296 290 307 306 300 878 913 Interest credited 181 184 189 183 193 185 199 554 577 Benefits, withdrawals, maturities and other adjustments Benefits (258) (225) (252) (247) (272) (285) (273) (735) (830) Surrenders and partial withdrawals (271) (300) (245) (295) (375) (303) (305) (816) (983) Maturities of and interest payments on institutional products - - - - - (1) - - (1) Contract charges (208) (206) (206) (207) (205) (203) (203) (620) (611) Net transfers from separate accounts 2 1 1 2 2 2 1 4 5 Other adjustments 1 8 14 10 (59) - 19 23 (40) Total benefits, withdrawals, maturities and other adjustments (734) (722) (688) (737) (909) (790) (761) (2,144) (2,460) Contractholder funds, ending balance $ 20,583 $ 20,845 $ 21,092 $ 21,295 $ 21,559 $ 21,968 $ 22,267 $ 20,583 $ 21,559 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL CHANGE IN CONTRACTHOLDER FUNDS ($ in millions) Nine months endedThree months ended

42 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Benefit spread Premiums $ 361 $ 353 $ 354 $ 339 $ 329 $ 326 $ 328 $ 1,068 $ 983 Cost of insurance contract charges (1) 136 140 141 137 137 138 138 417 413 Contract benefits excluding the implied interest on immediate annuities with life contingencies (2) (358) (325) (327) (328) (333) (319) (312) (1,010) (964) Total benefit spread 139 168 168 148 133 145 154 475 432 Investment spread Net investment income 427 435 419 420 491 489 484 1,281 1,464 Implied interest on immediate annuities with life contingencies (2) (126) (129) (128) (128) (127) (127) (129) (383) (383) Interest credited to contractholder funds (183) (185) (190) (183) (194) (185) (199) (558) (578) Total investment spread 118 121 101 109 170 177 156 340 503 Surrender charges and contract maintenance expense fees (1) 74 71 71 71 72 72 71 216 215 Realized capital gains and losses (21) - (49) (97) 194 59 111 (70) 364 Amortization of deferred policy acquisition costs (70) (69) (73) (64) (63) (65) (70) (212) (198) Operating costs and expenses (126) (121) (123) (119) (112) (118) (123) (370) (353) Restructuring and related charges - (1) - 3 (1) (2) - (1) (3) Gain (loss) on disposition of operations 1 1 2 1 3 1 (2) 4 2 Income tax expense (35) (54) (29) (13) (134) (90) (114) (118) (338) Net income applicable to common shareholders $ 80 $ 116 $ 68 $ 39 $ 262 $ 179 $ 183 $ 264 $ 624 Benefit spread by product group Life insurance $ 64 $ 85 $ 80 $ 75 $ 66 $ 65 $ 68 $ 229 $ 199 Accident and health insurance 103 108 105 92 90 97 107 316 294 Annuities (28) (25) (17) (19) (23) (17) (21) (70) (61) Total benefit spread $ 139 $ 168 $ 168 $ 148 $ 133 $ 145 $ 154 $ 475 $ 432 Investment spread by product group Annuities and institutional products $ 25 $ 35 $ 17 $ 10 $ 82 $ 77 $ 69 $ 77 $ 228 Life insurance 30 29 34 41 33 33 33 93 99 Accident and health insurance 4 4 4 4 4 4 4 12 12 Net investment income on investments supporting capital 59 59 52 52 54 57 57 170 168 Investment spread before valuation changes on embedded derivatives that are not hedged 118 127 107 107 173 171 163 352 507 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - (6) (6) 2 (3) 6 (7) (12) (4) Total investment spread $ 118 $ 121 $ 101 $ 109 $ 170 $ 177 $ 156 $ 340 $ 503 (1) Reconciliation of contract charges Cost of insurance contract charges $ 136 $ 140 $ 141 $ 137 $ 137 $ 138 $ 138 $ 417 $ 413 Surrender charges and contract maintenance expense fees 74 71 71 71 72 72 71 216 215 Total contract charges $ 210 $ 211 $ 212 $ 208 $ 209 $ 210 $ 209 $ 633 $ 628 (2) Reconciliation of contract benefits Contract benefits excluding the implied interest on immediate annuities with life contingencies $ (358) $ (325) $ (327) $ (328) $ (333) $ (319) $ (312) $ (1,010) $ (964) Implied interest on immediate annuities with life contingencies (126) (129) (128) (128) (127) (127) (129) (383) (383) Total contract benefits $ (484) $ (454) $ (455) $ (456) $ (460) $ (446) $ (441) $ (1,393) $ (1,347) THE ALLSTATE CORPORATION ALLSTATE FINANCIAL ANALYSIS OF NET INCOME ($ in millions) Nine months endedThree months ended

43 Weighted average Weighted average Weighted average Weighted average Weighted average Weighted average investment yield interest crediting rate investment spreads investment yield interest crediting rate investment spreads Interest-sensitive life insurance 4.8 % 3.9 % 0.9 % 5.1 % 3.9 % 1.2 % Deferred fixed annuities and institutional products 4.2 2.8 1.4 4.2 2.9 1.3 Immediate fixed annuities with and without life contingencies 6.2 6.0 0.2 8.0 5.9 2.1 Investments supporting capital, traditional life and other products 4.0 n/a n/a 3.8 n/a n/a Weighted average Weighted average Weighted average Weighted average Weighted average Weighted average investment yield interest crediting rate investment spreads investment yield interest crediting rate investment spreads Interest-sensitive life insurance 4.9 % 3.9 % 1.0 % 5.1 % 3.9 % 1.2 % Deferred fixed annuities and institutional products 4.1 2.8 1.3 4.3 2.8 1.5 Immediate fixed annuities with and without life contingencies 6.2 5.9 0.3 7.6 5.9 1.7 Investments supporting capital, traditional life and other products 3.9 n/a n/a 4.1 n/a n/a Nine months ended September 30, 2016 Nine months ended September 30, 2015 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS Three months ended September 30, 2016 Three months ended September 30, 2015

44 Twelve months ended Sept. 30, 2016 Attributed equity Reserves and excluding unrealized Sept. June March Dec. Sept. June March Contractholder funds capital gains/losses (3)(4) Operating income (5) 2016 2016 2016 2015 2015 2015 2015 Underwritten products Life insurance $ 10,793 $ 2,647 $ 265 10.1 % 10.8 % 11.1 % 10.6 % 10.0 % 9.3 % 9.8 % Accident and health insurance 863 662 83 12.8 12.4 12.2 12.7 13.7 14.9 15.9 Subtotal 11,656 3,309 348 10.6 11.1 11.3 11.1 10.8 10.5 11.1 Immediate Annuities: Sub-standard structured settlements and group pension terminations (1) 5,029 1,910 (29) (1.7) (0.9) (0.2) 0.5 1.6 0.5 0.6 Standard structured settlements and SPIA (2) 6,688 1,218 26 2.2 4.1 4.9 6.8 9.4 8.8 8.4 Subtotal (6) 11,717 3,128 (3) (0.1) 1.1 2.0 3.1 4.7 3.8 3.7 Deferred Annuities 9,353 617 70 9.6 10.0 10.4 10.1 10.1 10.6 10.3 Institutional products 85 1 1 Subtotal 21,155 3,746 68 1.8 2.9 3.7 4.8 6.2 6.1 6.0 Total Allstate Financial $ 32,811 $ 7,055 $ 416 6.0 6.8 7.2 7.8 8.4 8.4 8.5 Life Accident and Annuities and Allstate insurance health insurance institutional products Financial Operating income $ 191 $ 67 $ 60 $ 318 Realized capital gains and losses, after-tax (18) (2) (26) (46) Valuation changes on embedded derivatives that are not hedged, after-tax - - (8) (8) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (3) - - (3) Gain on disposition of operations, after-tax - - 3 3 Net income applicable to common shareholders $ 170 $ 65 $ 29 $ 264 (1) (2) (3) (4) (5) (6) Structured settlement annuities for annuitants with severe injuries or other health impairments which significantly reduced their life expectancy at the time the annuity was issued and group annuity contracts issued to sponsors of terminated pension plans. THE ALLSTATE CORPORATION ALLSTATE FINANCIAL SUPPLEMENTAL PRODUCT INFORMATION ($ in millions) As of Sept. 30, 2016 Nine months ended Sept. 30, 2016 Annuities and institutional products: Twelve months ended Operating income return on attributed equity (%) Of the total immediate annuities, $8,646 are reported in reserve for life-contingent contract benefits and $3,071 are reported in contractholder funds. Product line operating income includes allocation of income on investments supporting capital. Operating income reflects a trailing twelve-month period. Life-contingent structured settlement annuities for annuitants with standard life expectancy, period certain structured settlements and single premium immediate annuities with and without life contingencies. Total Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company and the applicable equity for Allstate Financial Insurance Holdings Corporation, excluding unrealized capital gains and losses. Attributed equity is allocated to each product line based on statutory capital adjusted for GAAP reporting differences and the amount of capital held in Allstate Financial may vary from economic capital. The calculation of statutory capital by product incorporates internal factors for invested asset risk, insurance risk (mortality and morbidity), interest rate risk and business risk. Due to the unavailability of final statutory financial statements at the time we release our GAAP financial results, the allocation is derived from prior quarter statutory capital. Statutory capital is adjusted for appropriate GAAP accounting differences. Changes in internal capital factors, investment portfolio mix and risk as well as changes in GAAP and statutory reporting differences will result in changes to the allocation of attributed equity to products.

45 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE BY PRODUCT Underwritten products Life insurance 2,475 2,478 2,467 2,463 2,459 2,456 2,448 Accident and health insurance 3,275 3,294 3,278 2,873 2,848 2,843 2,777 5,750 5,772 5,745 5,336 5,307 5,299 5,225 Annuities Deferred annuities 160 163 168 172 176 181 186 Immediate annuities 98 100 101 102 104 105 106 258 263 269 274 280 286 292 Total 6,008 6,035 6,014 5,610 5,587 5,585 5,517 ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE BY SOURCE OF BUSINESS Allstate Agencies (2) 1,924 1,924 1,922 1,924 1,917 1,911 1,904 Allstate Benefits 3,736 3,755 3,729 3,315 3,292 3,287 3,218 Other (3) 348 356 363 371 378 387 395 Total 6,008 6,035 6,014 5,610 5,587 5,585 5,517 (1) (2) (3) Primarily business sold by banks/broker-dealers, independent master brokerage agencies and specialized structured settlement brokers. THE ALLSTATE CORPORATION ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE (1) (in thousands) Excludes Allstate Benefits products sold through Allstate Agencies, which are included in the Allstate Benefits line. Allstate Financial insurance policies and annuities in force reflect the number of contracts in force excluding sold blocks of business that remain on the balance sheet due to the dispositions of the business being effected through reinsurance arrangements. Policy counts associated with our voluntary employee benefits group business reflect certificate counts as opposed to group counts.

46 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Annuities Benefits Segment Life Annuities Benefits Segment $ 134 $ - $ 227 $ 361 $ 125 $ - $ 204 $ 329 176 4 30 210 178 4 27 209 120 289 18 427 121 353 17 491 (197) (156) (131) (484) (187) (154) (119) (460) (72) (102) (9) (183) (72) (110) (9) (191) Amortization of deferred policy acquisition costs (30) (2) (36) (68) (33) (1) (27) (61) (59) (8) (59) (126) (48) (9) (55) (112) - - - - (1) - - (1) (21) (7) (15) (43) (25) (29) (12) (66) 51 18 25 94 58 54 26 138 (7) (7) - (14) 1 121 3 125 - - - - - (2) - (2) (1) - - (1) (1) - - (1) Gain on disposition of operations, after-tax - 1 - 1 - 2 - 2 $ 43 $ 12 $ 25 $ 80 $ 58 $ 175 $ 29 $ 262 Premiums and Contract Charges - by Product Underwritten Products $ 133 $ - $ 12 $ 145 $ 124 $ - $ 11 $ 135 1 - 215 216 1 - 193 194 176 - 30 206 178 - 27 205 310 - 257 567 303 - 231 534 - - - - - - - - - 4 - 4 - 4 - 4 - 4 - 4 - 4 - 4 $ 310 $ 4 $ 257 $ 571 $ 303 $ 4 $ 231 $ 538 Life Insurance $ 59 $ - $ 5 $ 64 $ 59 $ - $ 7 $ 66 Accident and health insurance (2) - 105 103 (2) - 92 90 Annuities - (28) - (28) - (23) - (23) $ 57 $ (28) $ 110 $ 139 $ 57 $ (23) $ 99 $ 133 Annuities and institutional products $ - $ 25 $ - $ 25 $ - $ 82 $ - $ 82 Life insurance 27 - 3 30 32 - 1 33 Accident and health insurance 1 - 3 4 1 - 3 4 Net investment income on investments supporting capital 20 36 3 59 18 32 4 54 derivatives that are not hedged 48 61 9 118 51 114 8 173 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - - - - - (3) - (3) Total investment spread $ 48 $ 61 $ 9 $ 118 $ 51 $ 111 $ 8 $ 170 Premiums THE ALLSTATE CORPORATION ALLSTATE LIFE, ALLSTATE ANNUITIES AND ALLSTATE BENEFITS RESULTS AND PRODUCT INFORMATION ($ in millions) For the three months ended September 30, 2016 For the three months ended September 30, 2015 Valuation changes on embedded derivatives Contract charges Net investment income Contract benefits Interest credited to contractholder funds Operating costs and expenses Restructuring and related charges Income tax expense on operations Operating income Realized capital gains and losses, after-tax Annuities that are not hedged, after-tax DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax Net income Traditional life insurance premiums Accident and health insurance Interest-sensitive life insurance contract charges Investment Spread by Product Group Investment spread before valuation changes on embedded Immediate annuities with life contingencies premiums Other fixed annuity contract charges Total life and annuity premiums and contract charges Benefit Spread by Product Group Total benefit spread

47 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Annuities Benefits Segment Life Annuities Benefits Segment $ 395 $ - $ 673 $ 1,068 $ 374 $ - $ 609 $ 983 537 10 86 633 538 10 80 628 358 869 54 1,281 362 1,049 53 1,464 (554) (459) (380) (1,393) (560) (453) (334) (1,347) (213) (305) (28) (546) (212) (335) (27) (574) Amortization of deferred policy acquisition costs (93) (5) (109) (207) (95) (4) (93) (192) (169) (23) (178) (370) (159) (29) (165) (353) (1) - - (1) (3) - - (3) (79) (27) (41) (147) (73) (80) (42) (195) 181 60 77 318 172 158 81 411 (17) (26) (3) (46) 13 219 3 235 - (8) - (8) - (3) - (3) (3) - - (3) (4) 1 - (3) Gain (loss) on disposition of operations, after-tax - 3 - 3 (1) 2 - 1 Change in accounting for investments in qualified affordable housing projects, after-tax - - - - (6) (11) - (17) $ 161 $ 29 $ 74 $ 264 $ 174 $ 366 $ 84 $ 624 Premiums and Contract Charges - by Product Underwritten Products $ 393 $ - $ 29 $ 422 $ 372 $ - $ 26 $ 398 2 - 644 646 2 - 583 585 537 - 86 623 538 - 80 618 932 - 759 1,691 912 - 689 1,601 - - - - - - - - - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 $ 932 $ 10 $ 759 $ 1,701 $ 912 $ 10 $ 689 $ 1,611 Life Insurance $ 212 $ - $ 17 $ 229 $ 181 $ - $ 18 $ 199 Accident and health insurance (4) - 320 316 (6) - 300 294 Annuities - (70) - (70) - (61) - (61) $ 208 $ (70) $ 337 $ 475 $ 175 $ (61) $ 318 $ 432 Annuities and institutional products $ - $ 77 $ - $ 77 $ - $ 228 $ - $ 228 Life insurance 85 - 8 93 93 - 6 99 Accident and health insurance 4 - 8 12 4 - 8 12 Net investment income on investments supporting capital 56 104 10 170 57 99 12 168 derivatives that are not hedged 145 181 26 352 154 327 26 507 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - (12) - (12) - (4) - (4) Total investment spread $ 145 $ 169 $ 26 $ 340 $ 154 $ 323 $ 26 $ 503 Investment Spread by Product Group Investment spread before valuation changes on embedded Immediate annuities with life contingencies premiums Other fixed annuity contract charges Total life and annuity premiums and contract charges Benefit Spread by Product Group Total benefit spread Annuities that are not hedged, after-tax DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax Net income Traditional life insurance premiums Accident and health insurance Interest-sensitive life insurance contract charges Valuation changes on embedded derivatives Contract charges Net investment income Contract benefits Interest credited to contractholder funds Operating costs and expenses Income tax expense on operations Operating income Realized capital gains and losses, after-tax Restructuring and related charges Premiums THE ALLSTATE CORPORATION ALLSTATE LIFE, ALLSTATE ANNUITIES AND ALLSTATE BENEFITS RESULTS AND PRODUCT INFORMATION ($ in millions) For the nine months ended September 30, 2016 For the nine months ended September 30, 2015

48 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net investment income $ 11 $ 11 $ 10 $ 10 $ 9 $ 8 $ 8 $ 32 $ 25 Operating costs and expenses (7) (7) (6) (7) (13) (9) (5) (20) (27) Interest expense (73) (72) (73) (73) (73) (73) (73) (218) (219) Income tax benefit on operations 26 26 25 27 28 28 26 77 82 Preferred stock dividends (29) (29) (29) (29) (29) (29) (29) (87) (87) Operating loss (72) (71) (73) (72) (78) (75) (73) (216) (226) Realized capital gains and losses, after-tax - (1) - - - - - (1) - Net loss applicable to common shareholders $ (72) $ (72) $ (73) $ (72) $ (78) $ (75) $ (73) $ (217) $ (226) THE ALLSTATE CORPORATION CORPORATE AND OTHER RESULTS ($ in millions) Nine months endedThree months ended

49 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2016 2016 2016 2015 2015 2016 2016 2016 2015 2015 Fixed income securities, at fair value: Tax-exempt $ 4,798 $ 4,612 $ 4,466 $ 4,285 $ 4,289 $ 1 $ 2 $ 2 $ 4 $ 17 Taxable 26,968 25,139 24,615 25,447 24,868 26,225 26,169 25,858 26,034 26,583 Equity securities, at fair value 3,604 3,632 3,709 3,480 2,808 1,681 1,630 1,405 1,599 1,425 Mortgage loans 270 313 294 296 339 4,126 4,140 4,008 4,042 4,063 Limited partnership interests (1) 2,913 2,842 2,688 2,575 2,558 2,674 2,564 2,399 2,295 2,261 Short-term, at fair value 917 1,619 1,452 959 1,692 733 1,197 1,626 861 991 Other 1,587 1,532 1,512 1,437 1,659 2,076 2,058 2,038 1,957 1,929 Total $ 41,057 $ 39,689 $ 38,736 $ 38,479 $ 38,213 $ 37,516 $ 37,760 $ 37,336 $ 36,792 $ 37,269 Fixed income securities, amortized cost: Tax-exempt $ 4,726 $ 4,509 $ 4,384 $ 4,218 $ 4,214 $ 1 $ 2 $ 2 $ 4 $ 17 Taxable 26,447 24,746 24,454 25,672 24,883 24,330 24,357 24,481 25,145 25,335 Ratio of fair value to amortized cost 101.9% 101.7% 100.8% 99.5% 100.2% 107.8% 107.4% 105.6% 103.5% 104.9% Equity securities, cost $ 3,212 $ 3,337 $ 3,417 $ 3,236 $ 2,656 $ 1,585 $ 1,584 $ 1,372 $ 1,567 $ 1,464 Short-term, amortized cost 917 1,619 1,452 959 1,692 733 1,197 1,626 861 991 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2016 2016 2016 2015 2015 2016 2016 2016 2015 2015 Fixed income securities, at fair value: Tax-exempt $ 600 $ 609 $ 591 $ 585 $ 589 $ 5,399 $ 5,223 $ 5,059 $ 4,874 $ 4,895 Taxable 1,714 1,598 1,759 1,593 1,911 54,907 52,906 52,232 53,074 53,362 Equity securities, at fair value 3 3 3 3 3 5,288 5,265 5,117 5,082 4,236 Mortgage loans - - - - - 4,396 4,453 4,302 4,338 4,402 Limited partnership interests (1) 1 1 4 4 4 5,588 5,407 5,091 4,874 4,823 Short-term, at fair value 213 34 448 302 353 1,863 2,850 3,526 2,122 3,036 Other - - - - - 3,663 3,590 3,550 3,394 3,588 Total $ 2,531 $ 2,245 $ 2,805 $ 2,487 $ 2,860 $ 81,104 $ 79,694 $ 78,877 $ 77,758 $ 78,342 Fixed income securities, amortized cost: Tax-exempt $ 580 $ 585 $ 569 $ 566 $ 569 $ 5,307 $ 5,096 $ 4,955 $ 4,788 $ 4,800 Taxable 1,691 1,571 1,737 1,596 1,900 52,468 50,674 50,672 52,413 52,118 Ratio of fair value to amortized cost 101.9% 102.4% 101.9% 100.7% 101.3% 104.4% 104.2% 103.0% 101.3% 102.4% Equity securities, cost $ 3 $ 3 $ 3 $ 3 $ 3 $ 4,800 $ 4,924 $ 4,792 $ 4,806 $ 4,123 Short-term, amortized cost 213 34 448 302 353 1,863 2,850 3,526 2,122 3,036 (1) As of September 30, 2016, we have commitments to invest in additional limited partnership interests totaling $1.48 billion, $1.29 billion and $2.77 billion for Property-Liability, Allstate Financial, and in Total, respectively. THE ALLSTATE CORPORATION INVESTMENTS ($ in millions) PROPERTY-LIABILITY CORPORATE AND OTHER ALLSTATE FINANCIAL CONSOLIDATED

50 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2015 2015 2015 2015 Investment position Accounting basis Cost method $ 1,375 $ 1,284 $ 1,193 $ 1,154 $ 1,148 $ 1,130 $ 1,137 Equity method ("EMA") (1) 4,213 4,123 3,898 3,720 3,675 3,406 3,562 Total $ 5,588 $ 5,407 $ 5,091 $ 4,874 $ 4,823 $ 4,536 $ 4,699 Cost method-fair value (2) $ 1,600 $ 1,511 $ 1,466 $ 1,450 $ 1,506 $ 1,482 $ 1,494 Underlying investment Private equity $ 4,010 $ 3,833 $ 3,494 $ 3,344 $ 3,282 $ 3,012 $ 2,969 Real estate 1,130 1,204 1,229 1,166 1,160 1,164 1,366 Other 448 370 368 364 381 360 364 Total $ 5,588 $ 5,407 $ 5,091 $ 4,874 $ 4,823 $ 4,536 $ 4,699 Segment Property-Liability $ 2,913 $ 2,842 $ 2,688 $ 2,575 $ 2,558 $ 2,466 $ 2,571 Allstate Financial 2,674 2,564 2,399 2,295 2,261 2,066 2,124 Corporate and Other 1 1 4 4 4 4 4 Total $ 5,588 $ 5,407 $ 5,091 $ 4,874 $ 4,823 $ 4,536 $ 4,699 Total Income Accounting basis Cost method $ 43 $ 47 $ 39 $ 42 $ 63 $ 75 $ 42 Equity method 93 79 82 24 104 43 156 Total $ 136 $ 126 $ 121 $ 66 $ 167 $ 118 $ 198 Underlying investment Private equity $ 112 $ 114 $ 88 $ 46 $ 162 $ 113 $ 80 Real estate 23 12 33 20 5 10 123 Other 1 - - - - (5) (5) Total $ 136 $ 126 $ 121 $ 66 $ 167 $ 118 $ 198 Segment Property-Liability $ 69 $ 60 $ 58 $ 29 $ 62 $ 45 $ 126 Allstate Financial 67 66 63 37 105 73 72 Corporate and Other - - - - - - - Total $ 136 $ 126 $ 121 $ 66 $ 167 $ 118 $ 198 (1) (2) The fair value of cost method limited partnerships is determined using reported net asset values. THE ALLSTATE CORPORATION LIMITED PARTNERSHIP INVESTMENTS ($ in millions) As of or for the three months ended As of September 30, 2016, valuations of EMA limited partnerships include approximately $469 million of cumulative pre-tax appreciation that has been recognized in earnings but has not been distributed to investors.

51 Unrealized net Fair value Unrealized net Fair value Unrealized net Fair value capital gains Fair as a percent of capital gains Fair as a percent of capital gains Fair as a percent of and losses value amortized cost (1) and losses value amortized cost (1) and losses value amortized cost (1) Fixed income securities U.S. government and agencies $ 105 $ 4,304 102.5 $ 122 $ 3,523 103.6 $ 114 $ 3,504 103.4 Municipal 470 7,902 106.3 532 7,818 107.3 442 7,616 106.2 Corporate 1,804 44,474 104.2 1,566 42,700 103.8 989 41,272 102.5 Foreign government 59 1,119 105.6 61 1,152 105.6 55 1,054 105.5 Asset-backed securities ("ABS") (3) 1,390 99.8 (11) 1,726 99.4 (27) 2,499 98.9 Residential mortgage-backed securities ("RMBS") 82 778 111.8 70 818 109.4 68 875 108.4 Commercial mortgage-backed securities ("CMBS") 11 315 103.6 16 368 104.5 20 447 104.7 Redeemable preferred stock 3 24 114.3 3 24 114.3 3 24 114.3 Total fixed income securities 2,531 60,306 104.4 2,359 58,129 104.2 1,664 57,291 103.0 Equity securities 488 5,288 110.2 341 5,265 106.9 325 5,117 106.8 Short-term investments - 1,863 100.0 - 2,850 100.0 - 3,526 100.0 Derivatives 1 85 n/a 2 71 n/a 4 58 n/a EMA limited partnership interests (2) (5) n/a n/a (5) n/a n/a (5) n/a n/a Unrealized net capital gains and losses, pre-tax 3,015 2,697 1,988 Amounts recognized for: Insurance reserves (3) - - - DAC and DSI (4) (216) (195) (138) Amounts recognized (216) (195) (138) Deferred income taxes (982) (878) (650) Unrealized net capital gains and losses, after-tax $ 1,817 $ 1,624 $ 1,200 Unrealized net Fair value Unrealized net Fair value Unrealized net Fair value capital gains Fair as a percent of capital gains Fair as a percent of capital gains Fair as a percent of and losses value amortized cost (1) and losses value amortized cost (1) and losses value amortized cost (1) Fixed income securities U.S. government and agencies $ 86 $ 3,922 102.2 $ 118 $ 3,760 103.2 $ 109 $ 3,936 102.8 Municipal 369 7,401 105.2 412 7,494 105.8 483 8,594 106.0 Corporate 153 41,827 100.4 632 41,629 101.5 1,164 42,317 102.8 Foreign government 50 1,033 105.1 59 1,085 105.8 66 1,324 105.2 ABS (32) 2,327 98.6 (16) 2,711 99.4 (5) 2,076 99.8 RMBS 90 947 110.5 98 1,011 110.7 101 1,083 110.3 CMBS 28 466 106.4 32 542 106.3 37 575 106.9 Redeemable preferred stock 3 25 113.6 4 25 119.0 4 25 119.0 Total fixed income securities 747 57,948 101.3 1,339 58,257 102.4 1,959 59,930 103.4 Equity securities 276 5,082 105.7 113 4,236 102.7 351 4,000 109.6 Short-term investments - 2,122 100.0 - 3,036 100.0 - 2,821 100.0 Derivatives 6 53 n/a 7 29 n/a 3 60 n/a EMA limited partnership interests (2) (4) n/a n/a (5) n/a n/a (5) n/a n/a Unrealized net capital gains and losses, pre-tax 1,025 1,454 2,308 Amounts recognized for: Insurance reserves (3) - - - DAC and DSI (4) (67) (98) (121) Amounts recognized (67) (98) (121) Deferred income taxes (338) (477) (768) Unrealized net capital gains and losses, after-tax $ 620 $ 879 $ 1,419 (1) (2) (3) (4) THE ALLSTATE CORPORATION UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE ($ in millions) September 30, 2016 June 30, 2016 March 31, 2016 The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. Although we evaluate premium deficiencies on the combined performance of our life insurance and immediate annuities with life contingencies, the adjustment primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies. The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized. The comparison of percentages from period to period may be distorted by investment transactions such as sales, purchases and impairment write-downs. Unrealized net capital gains and losses for limited partnership interest represent the Company's share of EMA limited partnerships' other comprehensive income. Fair value and amortized cost are not applicable. December 31, 2015 September 30, 2015 June 30, 2015

52 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 NET INVESTMENT INCOME Fixed income securities $ 508 $ 520 $ 518 $ 537 $ 546 $ 567 $ 568 $ 1,546 $ 1,681 Equity securities 31 44 28 33 23 31 23 103 77 Mortgage loans 56 53 53 63 53 57 55 162 165 Limited partnership interests 136 126 121 66 167 118 198 383 483 Short-term 4 3 4 1 4 3 1 11 8 Other 55 57 51 49 49 49 45 163 143 Subtotal 790 803 775 749 842 825 890 2,368 2,557 Less: Investment expense (42) (41) (44) (39) (35) (36) (40) (127) (111) Net investment income $ 748 $ 762 $ 731 $ 710 $ 807 $ 789 $ 850 $ 2,241 $ 2,446 PRE-TAX YIELDS (1) Fixed income securities 3.6 % 3.7 % 3.7 % 3.8 % 3.8 % 3.9 % 3.9 % 3.6 % 3.9 % Equity securities 2.5 3.7 2.3 2.9 2.4 3.4 2.5 2.8 2.7 Mortgage loans 5.0 4.9 4.9 5.8 4.8 5.3 5.2 4.9 5.1 Limited partnership interests 9.9 9.6 9.7 5.4 14.4 10.1 17.2 9.7 13.9 Total portfolio 4.0 4.1 4.0 3.9 4.4 4.3 4.6 4.0 4.4 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (63) $ (63) $ (59) $ (118) $ (47) $ (11) $ (19) $ (185) $ (77) Change in intent write-downs (10) (16) (22) (32) (127) (32) (30) (48) (189) Net other-than-temporary impairment losses recognized in earnings (73) (79) (81) (150) (174) (43) (49) (233) (266) Sales and other 121 104 (59) (75) 183 146 216 166 545 Valuation and settlements of derivative instruments (15) (1) (9) (25) 24 5 (28) (25) 1 Total $ 33 $ 24 $ (149) $ (250) $ 33 $ 108 $ 139 $ (92) $ 280 TOTAL RETURN ON INVESTMENT PORTFOLIO (2) 1.3 % 1.9 % 2.0 % (0.2) % - % (0.6) % 1.7 % 5.2 % 1.2 % AVERAGE INVESTMENT BALANCES (in billions) (3) $ 77.5 $ 76.9 $ 76.8 $ 76.8 $ 76.9 $ 76.8 $ 77.4 $ 77.2 $ 77.1 (1) (2) (3) Quarterly pre-tax yield is calculated as annualized quarterly investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of the current and prior quarter investment balances. Year- to-date pre-tax yield is calculated as annualized year-to-date investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate, timber and other consolidated investments is net of asset level operating expenses (direct expenses of the assets reported in investment expense). For investments carried at fair value, investment balances exclude unrealized capital gains and losses. Total return on investment portfolio is calculated from GAAP results including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans, cost method limited partnerships, bank loans and agent loans divided by the average fair value balances. 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 beginning of the year and the end of each quarter during the year. For purposes of the average investment balances calculation, unrealized capital gains and losses are excluded. THE ALLSTATE CORPORATION NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Nine months endedThree months ended

53 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 NET INVESTMENT INCOME Fixed income securities: Tax-exempt $ 23 $ 23 $ 23 $ 27 $ 24 $ 26 $ 25 $ 69 $ 75 Taxable 192 198 200 201 197 195 190 590 582 Equity securities 21 30 20 24 16 23 18 71 57 Mortgage loans 3 3 3 4 4 3 4 9 11 Limited partnership interests 69 60 58 29 62 45 126 187 233 Short-term 3 1 2 - 3 1 1 6 5 Other 22 23 20 18 20 20 17 65 57 Subtotal 333 338 326 303 326 313 381 997 1,020 Less: Investment expense (23) (22) (24) (23) (19) (21) (23) (69) (63) Net investment income $ 310 $ 316 $ 302 $ 280 $ 307 $ 292 $ 358 $ 928 $ 957 Net investment income, after-tax $ 211 $ 215 $ 206 $ 192 $ 209 $ 199 $ 242 $ 632 $ 650 PRE-TAX YIELDS (1) Fixed income securities: Tax-exempt 2.0 % 2.1 % 2.1 % 2.6 % 2.3 % 2.3 % 2.4 % 2.1 % 2.4 % Equivalent yield for tax-exempt 2.9 3.1 3.1 3.8 3.4 3.4 3.5 3.1 3.5 Taxable 3.0 3.2 3.2 3.2 3.2 3.1 2.9 3.1 3.1 Equity securities 2.6 3.6 2.4 3.1 2.5 3.4 2.6 2.9 2.8 Mortgage loans 3.7 3.9 4.0 5.4 4.0 4.1 4.5 3.9 4.2 Limited partnership interests 9.6 8.6 8.9 4.5 10.1 7.0 19.9 9.0 12.3 Total portfolio 3.3 3.5 3.3 3.1 3.5 3.3 4.0 3.4 3.6 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities: Tax-exempt $ 8 $ 4 $ 3 $ (10) $ 2 $ 1 $ 2 $ 15 $ 5 Taxable 9 20 (47) (75) (42) 13 10 (18) (19) Equity securities 42 15 (60) (13) (92) 32 46 (3) (14) Limited partnership interests 13 (10) 13 (27) (35) (1) 2 16 (34) Derivatives and other (19) (3) (8) (28) 6 4 (32) (30) (22) Total $ 53 $ 26 $ (99) $ (153) $ (161) $ 49 $ 28 $ (20) $ (84) REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (26) $ (42) $ (35) $ (84) $ (30) $ (6) $ (12) $ (103) $ (48) Change in intent write-downs (8) (12) (19) (24) (77) (28) (27) (39) (132) Net other-than-temporary impairment losses recognized in earnings (34) (54) (54) (108) (107) (34) (39) (142) (180) Sales and other 101 82 (41) (28) (63) 77 99 142 113 Valuation and settlements of derivative instruments (14) (2) (4) (17) 9 6 (32) (20) (17) Total $ 53 $ 26 $ (99) $ (153) $ (161) $ 49 $ 28 $ (20) $ (84) AVERAGE INVESTMENT BALANCES (in billions) (2) $ 39.5 $ 38.5 $ 38.3 $ 38.2 $ 37.8 $ 37.6 $ 37.9 $ 38.9 $ 37.9 (1) (2) Quarterly pre-tax yield is calculated as annualized quarterly investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of the current and prior quarter investment balances. Year-to-date pre-tax yield is calculated as annualized year-to-date investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate, timber and other consolidated investments is net of asset level operating expenses (direct expenses of the assets reported in investment expense). For investments carried at fair value, investment balances exclude unrealized capital gains and losses. 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 beginning of the year and the end of each quarter during the year. For purposes of the average investment balances calculation, unrealized capital gains and losses are excluded. THE ALLSTATE CORPORATION PROPERTY-LIABILITY NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Nine months endedThree months ended

54 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 NET INVESTMENT INCOME Fixed income securities $ 282 $ 288 $ 284 $ 300 $ 314 $ 338 $ 344 $ 854 $ 996 Equity securities 10 14 8 9 7 8 5 32 20 Mortgage loans 53 50 50 59 49 54 51 153 154 Limited partnership interests 67 66 63 37 105 73 72 196 250 Short-term 1 1 2 1 1 1 - 4 2 Other 32 33 30 30 29 28 27 95 84 Subtotal 445 452 437 436 505 502 499 1,334 1,506 Less: Investment expense (18) (17) (18) (16) (14) (13) (15) (53) (42) Net investment income $ 427 $ 435 $ 419 $ 420 $ 491 $ 489 $ 484 $ 1,281 $ 1,464 Net investment income, after-tax $ 278 $ 282 $ 273 $ 273 $ 319 $ 318 $ 315 $ 833 $ 952 PRE-TAX YIELDS (1) Fixed income securities 4.6 % 4.7 % 4.6 % 4.8 % 4.9 % 5.1 % 5.2 % 4.6 % 5.1 % Equity securities 2.5 3.9 2.1 2.4 2.1 3.4 2.1 2.8 2.4 Mortgage loans 5.1 4.9 4.9 5.8 4.9 5.5 5.2 5.0 5.2 Limited partnership interests 10.2 10.7 10.7 6.5 19.4 14.0 13.8 10.5 15.7 Total portfolio 4.9 5.0 4.8 4.8 5.6 5.6 5.5 4.9 5.6 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities $ (19) $ (1) $ (26) $ (64) $ 261 $ 46 $ 68 $ (46) $ 375 Equity securities 3 (4) (30) (13) (58) 16 32 (31) (10) Mortgage loans - 1 - 4 1 1 - 1 2 Limited partnership interests (1) - 13 (14) (20) (2) 4 12 (18) Derivatives and other (4) 4 (6) (10) 10 (2) 7 (6) 15 Total $ (21) $ - $ (49) $ (97) $ 194 $ 59 $ 111 $ (70) $ 364 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (37) $ (18) $ (24) $ (34) $ (17) $ (5) $ (7) $ (79) $ (29) Change in intent write-downs (2) (4) (3) (8) (50) (4) (3) (9) (57) Net other-than-temporary impairment losses recognized in earnings (39) (22) (27) (42) (67) (9) (10) (88) (86) Sales and other 19 21 (17) (47) 246 69 117 23 432 Valuation and settlements of derivative instruments (1) 1 (5) (8) 15 (1) 4 (5) 18 Total $ (21) $ - $ (49) $ (97) $ 194 $ 59 $ 111 $ (70) $ 364 AVERAGE INVESTMENT BALANCES (in billions) (2) $ 35.7 $ 35.9 $ 35.9 $ 36.0 $ 36.1 $ 36.1 $ 36.3 $ 35.8 $ 36.2 (1) (2) 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 beginning of the year and the end of each quarter during the year. For purposes of the average investment balances calculation, unrealized capital gains and losses are excluded. THE ALLSTATE CORPORATION ALLSTATE FINANCIAL NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Nine months endedThree months ended Quarterly pre-tax yield is calculated as annualized quarterly investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of the current and prior quarter investment balances. Year-to-date pre-tax yield is calculated as annualized year-to-date investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate, timber and other consolidated investments is net of asset level operating expenses (direct expenses of the assets reported in investment expense). For investments carried at fair value, investment balances exclude unrealized capital gains and losses.

55 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Consolidated investment portfolio Interest-bearing (1) $ 69,709 $ 68,519 $ 68,163 $ 67,390 $ 68,913 $ 70,243 $ 71,287 $ 69,709 $ 68,913 Equity/owned (2) 11,395 11,175 10,714 10,368 9,429 8,898 9,150 11,395 9,429 Total $ 81,104 $ 79,694 $ 78,877 $ 77,758 $ 78,342 $ 79,141 $ 80,437 $ 81,104 $ 78,342 Consolidated portfolio total return (3) Interest-bearing 0.9 % 1.7 % 1.9 % (0.3) % 0.4 % (0.8) % 1.4 % 4.5 % 1.1 % Equity/owned 0.4 0.2 0.2 0.2 (0.3) 0.2 0.4 0.8 0.2 Investment expenses - - (0.1) (0.1) (0.1) - (0.1) (0.1) (0.1) Total 1.3 1.9 2.0 (0.2) - (0.6) 1.7 5.2 1.2 Consolidated portfolio total return (3) Income 0.9 % 1.0 % 0.9 % 0.9 % 1.0 % 1.0 % 1.0 % 2.8 % 3.0 % Valuation 0.4 0.9 1.1 (1.1) (1.0) (1.6) 0.7 2.4 (1.8) Total 1.3 1.9 2.0 (0.2) - (0.6) 1.7 5.2 1.2 Consolidated net investment income Interest-bearing $ 613 $ 623 $ 618 $ 643 $ 646 $ 670 $ 664 $ 1,854 $ 1,980 Equity/owned 177 180 157 106 196 155 226 514 577 Investment expenses (42) (41) (44) (39) (35) (36) (40) (127) (111) Total $ 748 $ 762 $ 731 $ 710 $ 807 $ 789 $ 850 $ 2,241 $ 2,446 Consolidated Interest-bearing pre-tax yield (4) 3.7 % 3.8 % 3.7 % 3.8 % 3.8 % 3.9 % 3.9 % 3.7 % 3.9 % Property-Liability net investment income Interest-bearing excluding prepayment premiums $ 235 $ 236 $ 241 $ 240 $ 240 $ 233 $ 226 $ 712 $ 699 Prepayment premiums 3 5 2 5 4 7 7 10 18 Total Interest-bearing 238 241 243 245 244 240 233 722 717 Equity/owned 95 97 83 58 82 73 148 275 303 Less: Investment expenses (23) (22) (24) (23) (19) (21) (23) (69) (63) Total 310 316 302 280 307 292 358 928 957 Less: prepayment premiums (3) (5) (2) (5) (4) (7) (7) (10) (18) Total excluding prepayment premiums $ 307 $ 311 $ 300 $ 275 $ 303 $ 285 $ 351 $ 918 $ 939 Property-Liability interest-bearing pre-tax yield 2.9 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 2.9 % 3.0 % 2.9 % Property-Liability interest-bearing pre-tax yield excluding prepayment premiums 2.8 % 3.0 % 3.0 % 3.0 % 2.9 % 2.9 % 2.8 % 2.9 % 2.9 % Allstate Financial net investment income Interest-bearing excluding prepayment premiums $ 354 $ 357 $ 361 $ 371 $ 386 $ 408 $ 413 $ 1,072 $ 1,207 Prepayment premiums 9 12 2 17 5 12 8 23 25 Total interest-bearing 363 369 363 388 391 420 421 1,095 1,232 Equity/owned 82 83 74 48 114 82 78 239 274 Less: Investment expenses (18) (17) (18) (16) (14) (13) (15) (53) (42) Total 427 435 419 420 491 489 484 1,281 1,464 Less: prepayment premiums (9) (12) (2) (17) (5) (12) (8) (23) (25) Total excluding prepayment premiums $ 418 $ 423 $ 417 $ 403 $ 486 $ 477 $ 476 $ 1,258 $ 1,439 Allstate Financial interest-bearing pre-tax yield 4.6 % 4.6 % 4.6 % 4.8 % 4.8 % 5.1 % 5.1 % 4.6 % 5.0 % Allstate Financial interest-bearing pre-tax yield excluding prepayment premiums 4.5 % 4.5 % 4.5 % 4.6 % 4.7 % 4.9 % 5.0 % 4.5 % 4.9 % (1) Includes fixed income securities, mortgage loans, short-term and other investments. (2) Includes limited partnership interests, equity securities and real estate. (3) (4) Total return on investment portfolio is calculated from GAAP results including the total of net investment income, realized capital gains and losses, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage loans, cost method limited partnerships, bank loans and agent loans divided by the average fair value balances. Quarterly pre-tax yield is calculated as annualized quarterly interest-bearing investment income, generally before investment expense divided by the average of the current and prior quarter interest-bearing investment balances. Year-to-date pre-tax yield is calculated as annualized year-to-date interest-bearing investment income, generally before investment expense divided by the average of interest-bearing investment balances at the beginning of the year and the end of each quarter during the year. For investments carried at fair value, investment balances exclude unrealized capital gains and losses. THE ALLSTATE CORPORATION INVESTMENT RESULTS ($ in millions) Nine months endedThree months ended

56 September 30, 2016 Total Market-Based Core (1) Market-Based Active (2) Performance- Based Long-Term (3) Performance- Based Opportunistic (4) Fixed income securities $ 60,306 $ 52,452 $ 7,769 $ 69 $ 16 Equity securities 5,288 4,297 897 94 - Mortgage loans 4,396 4,396 - - - Limited partnership interests 5,588 448 - 5,137 3 Short-term investments 1,863 1,575 288 - - Other 3,663 2,980 152 520 11 Total $ 81,104 $ 66,148 $ 9,106 $ 5,820 $ 30 % of total 100 % 82 % 11 % 7 % - % Property-Liability $ 41,057 $ 30,015 $ 7,929 $ 3,093 $ 20 % of Property-Liability 100 % 73 % 19 % 8 % - % Allstate Financial $ 37,516 $ 33,602 $ 1,177 $ 2,727 $ 10 % of Allstate Financial 100 % 90 % 3 % 7 % - % Corporate & Other $ 2,531 $ 2,531 $ - $ - $ - % of Corporate & Other 100 % 100 % - % - % - % Unrealized net capital gains and losses $ 3,015 $ 2,847 $ 165 $ 1 $ 2 December 31, 2015 Total Market-Based Core (1) Market-Based Active (2) Performance- Based Long-Term (3) Performance- Based Opportunistic (4) Fixed income securities $ 57,948 $ 51,175 $ 6,691 $ 47 $ 35 Equity securities 5,082 4,210 764 77 31 Mortgage loans 4,338 4,338 - - - Limited partnership interests 4,874 364 - 4,510 - Short-term investments 2,122 1,631 491 - - Other 3,394 2,783 183 415 13 Total $ 77,758 $ 64,501 $ 8,129 $ 5,049 $ 79 % of total 100 % 83 % 10 % 7 % - % Property-Liability $ 38,479 $ 28,525 $ 7,137 $ 2,764 $ 53 % of Property-Liability 100 % 74 % 19 % 7 % - % Allstate Financial $ 36,792 $ 33,490 $ 992 $ 2,284 $ 26 % of Allstate Financial 100 % 91 % 3 % 6 % - % Corporate & Other $ 2,487 $ 2,486 $ - $ 1 $ - % of Corporate & Other 100 % 100 % - % - % - % (1) Market-based core is comprised primarily of highly diversified fixed income securities, mortgage loans and equity securities to align with business segment priorities. (2) Market-based active is comprised primarily of fixed income and equity securities to generate additional returns by taking advantage of market opportunities. (3) Performance-based long-term is comprised primarily of private equity and real estate investments to generate returns over an extended horizon. (4) Performance-based opportunistic primarily generates returns by taking advantage of asset dislocations and by selectively providing liquidity to distressed sellers. THE ALLSTATE CORPORATION INVESTMENT POSITION BY STRATEGY ($ in millions)

57 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Investment income Market-Based Core $ 577 $ 595 $ 581 $ 614 $ 612 $ 640 $ 629 $ 1,753 $ 1,881 Market-Based Active 66 67 61 59 52 52 50 194 154 Performance-Based Long-Term 147 138 131 74 176 130 209 416 515 Performance-Based Opportunistic - 3 2 2 2 3 2 5 7 Investment income, before expense 790 803 775 749 842 825 890 2,368 2,557 Investment expense (42) (41) (44) (39) (35) (36) (40) (127) (111) Net investment income $ 748 $ 762 $ 731 $ 710 $ 807 $ 789 $ 850 $ 2,241 $ 2,446 PBLT Asset level operating expense (1) $ (8) $ (8) $ (8) $ (4) $ (4) $ (5) $ (6) $ (24) $ (15) Realized capital gains and losses Market-Based Core $ 23 $ 13 $ (91) $ (153) $ 102 $ 63 $ 58 $ (55) $ 223 Market-Based Active 33 39 (47) (49) (63) 48 73 25 58 Performance-Based Long-Term (28) (27) (11) (49) - (5) 8 (66) 3 Performance-Based Opportunistic 5 (1) - 1 (6) 2 - 4 (4) Total $ 33 $ 24 $ (149) $ (250) $ 33 $ 108 $ 139 $ (92) $ 280 (1) When calculating the pre-tax yields, asset level operating expenses are netted against income for directly held real estate, timber and other consolidated investments. THE ALLSTATE CORPORATION INVESTMENT RESULTS BY STRATEGY ($ in millions) Nine months endedThree months ended

58 Total Market- Based Core Market- Based Active Performance- Based Long-Term Performance- Based Opportunistic Three months ended September 30, 2016 Investment income Fixed income securities $ 508 $ 452 $ 55 $ 1 $ - Equity securities 31 24 7 - - Mortgage loans 56 56 - - - Limited partnership interests 136 1 - 135 - Short-term investments 4 3 1 - - Other 55 41 3 11 - Investment income, before expense 790 $ 577 $ 66 $ 147 $ - Investment expense (42) Net investment income $ 748 Realized capital gains and losses Fixed income securities $ (1) $ (26) $ 23 $ - $ 2 Equity securities 45 25 19 (2) 3 Mortgage loans - - - - - Limited partnership interests 12 33 - (21) - Short-term investments - - - - - Other (23) (9) (9) (5) - Total $ 33 $ 23 $ 33 $ (28) $ 5 Nine months ended September 30, 2016 Investment income Fixed income securities $ 1,546 $ 1,374 $ 165 $ 3 $ 4 Equity securities 103 85 18 - - Mortgage loans 162 162 - - - Limited partnership interests 383 1 - 382 - Short-term investments 11 8 3 - - Other 163 123 8 31 1 Investment income, before expense 2,368 $ 1,753 $ 194 $ 416 $ 5 Investment expense (127) Net investment income $ 2,241 Realized capital gains and losses Fixed income securities $ (48) $ (94) $ 46 $ - $ - Equity securities (34) (2) 1 (35) 2 Mortgage loans 1 1 - - - Limited partnership interests 25 53 - (28) - Short-term investments - - - - - Other (36) (13) (22) (3) 2 Total $ (92) $ (55) $ 25 $ (66) $ 4 THE ALLSTATE CORPORATION INVESTMENT INCOME AND REALIZED CAPITAL GAINS AND LOSSES BY INVESTMENT TYPE AND STRATEGY ($ in millions)

59 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2016 2016 2016 2015 2015 2015 2015 2016 2015 Investment position Limited partnerships Private equity (1) $ 3,836 $ 3,663 $ 3,324 $ 3,181 $ 3,131 $ 3,012 $ 2,969 $ 3,836 $ 3,131 Real estate (2) 1,130 1,204 1,229 1,166 1,160 1,164 1,366 1,130 1,160 Timber & agriculture-related (3) 171 170 170 163 151 - - 171 151 PBLT - limited partnerships 5,137 5,037 4,723 4,510 4,442 4,176 4,335 5,137 4,442 Other (4) Private equity 138 97 103 71 93 70 67 138 93 Real estate 380 358 361 301 288 242 201 380 288 Timber & agriculture-related 165 166 167 167 167 167 168 165 167 PBLT - other 683 621 631 539 548 479 436 683 548 Total Private equity 3,974 3,760 3,427 3,252 3,224 3,082 3,036 3,974 3,224 Real estate 1,510 1,562 1,590 1,467 1,448 1,406 1,567 1,510 1,448 Timber & agriculture-related 336 336 337 330 318 167 168 336 318 Total PBLT $ 5,820 $ 5,658 $ 5,354 $ 5,049 $ 4,990 $ 4,655 $ 4,771 $ 5,820 $ 4,990 Investment income Limited partnerships Private equity $ 112 $ 113 $ 85 $ 47 $ 162 $ 113 $ 80 $ 310 $ 355 Real estate 23 12 33 20 5 10 123 68 138 Timber & agriculture-related - 1 3 (1) - - - 4 - PBLT - limited partnerships 135 126 121 66 167 123 203 382 493 Other Private equity 2 1 - - 1 - - 3 1 Real estate 8 8 8 6 7 5 4 24 16 Timber & agriculture-related 2 3 2 2 1 2 2 7 5 PBLT - other 12 12 10 8 9 7 6 34 22 Total Private equity 114 114 85 47 163 113 80 313 356 Real estate 31 20 41 26 12 15 127 92 154 Timber & agriculture-related 2 4 5 1 1 2 2 11 5 Total PBLT $ 147 $ 138 $ 131 $ 74 $ 176 $ 130 $ 209 $ 416 $ 515 Asset level operating expense (5) $ (8) $ (8) $ (8) $ (4) $ (4) $ (5) $ (6) $ (24) $ (15) Realized capital gains and losses Limited partnerships Private equity $ (23) $ (20) $ 12 $ (49) $ (3) $ (3) $ 9 $ (31) $ 3 Real estate 2 - 1 - (2) - (2) 3 (4) Timber & agriculture-related - - - - - - - - - PBLT - limited partnerships (21) (20) 13 (49) (5) (3) 7 (28) (1) Other Private equity (7) (7) (25) 1 6 (1) - (39) 5 Real estate - - 1 (1) (1) (1) - 1 (2) Timber & agriculture-related - - - - - - 1 - 1 PBLT - other (7) (7) (24) - 5 (2) 1 (38) 4 Total Private equity (30) (27) (13) (48) 3 (4) 9 (70) 8 Real estate 2 - 2 (1) (3) (1) (2) 4 (6) Timber & agriculture-related - - - - - - 1 - 1 Total PBLT $ (28) $ (27) $ (11) $ (49) $ - $ (5) $ 8 $ (66) $ 3 Pre-Tax Yield (6) 9.7 % 9.4 % 9.4 % 5.6 % 14.3 % 10.6 % 17.5 % 9.6 % 14.1 % 10 Year Internal Rate of Return (7) 10.1 % 10.2 % 10.5 % 10.8 % 11.3 % 11.3 % 11.4 % (1) (2) (3) (4) (5) (6) (7) The internal rate of return ("IRR") for our PBLT investments is one of the measures we use to evaluate the strategy's performance. The IRR represents the rate of return on the investments considering the cash flows and the estimated value of investment holdings. Until an investment is fully liquidated, through final distribution or disposal, the IRR is an interim estimated return. Our IRR calculation method may differ from those used by other investors. Our PBLT portfolio is diversified by asset type and vintage year. The IRR calculation includes cash flows paid or received related to PBLT investments during the measurement period, and valuation of investment holdings at the beginning and end of the measurement period. The timing and amount of cash flows and changes in estimated values could have a significant impact on the IRR. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments. When calculating the pre-tax yields, asset level operating expenses are netted against income for directly held real estate, timber and other consolidated investments. Includes PBLT - fixed income securities, equity securities and other investments on page 56. Includes Timber and agriculture-related reflected in Private equity on page 50. Quarterly pre-tax yield is calculated as annualized quarterly PBLT investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of the current and prior quarter PBLT investment balances. Year-to-date pre-tax yield is calculated as annualized year-to-date PBLT investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of PBLT investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate, timber and other consolidated investments is net of asset level operating expenses (direct expenses of the assets reported in investment expense). For investments carried at fair value, investment balances exclude unrealized capital gains and losses. Includes Real estate on page 50. Includes Private equity on page 50, excluding Timber and agriculture-related. THE ALLSTATE CORPORATION PERFORMANCE-BASED LONG-TERM INVESTMENTS ("PBLT") ($ in millions) As of or for the nine months endedAs of or for the three months ended

60 Definitions of Non-GAAP Measures Operating income is net income applicable to common shareholders, excluding: - realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in operating income, - valuation changes on embedded derivatives that are not hedged, after-tax, - amortization of deferred policy acquisition costs ("DAC") and deferred sales inducements (“DSI”), to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives that are not hedged, after-tax, - amortization of purchased intangible assets, after-tax, - gain (loss) on disposition of operations, after-tax, and - adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years. We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. Net income applicable to common shareholders is the GAAP measure that is most directly comparable to operating income. We use operating income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, valuation changes on embedded derivatives that are not hedged, amortization of purchased intangible assets, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items. Realized capital gains and losses, valuation changes on embedded derivatives that are not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Consistent with our intent to protect results or earn additional income, operating income includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes. These instruments are used for economic hedges and to replicate fixed income securities, and by including them in operating income, we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments. Amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, operating income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine operating income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Operating income is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of operating income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, operating income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses operating income as the denominator. Operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of operating income to net income applicable to common shareholders is provided in the schedule, "Contribution to Income". Underwriting income is calculated as premiums earned, less claims and claims expense (“losses”), amortization of DAC, operating costs and expenses and restructuring and related charges as determined using GAAP. Management uses this measure in its evaluation of the results of operations to analyze the profitability of our Property-Liability insurance operations separately from investment results. It is also an integral component of incentive compensation. It is useful for investors to evaluate the components of income separately and in the aggregate when reviewing performance. Net income applicable to common shareholders is the most directly comparable GAAP measure. Underwriting income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business. A reconciliation of Property- Liability underwriting income to net income applicable to common shareholders is provided in the schedule, "Property-Liability Results". Combined ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between two GAAP operating ratios: the combined ratio and the effect of catastrophes on the combined ratio. The most directly comparable GAAP measure is the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the combined ratio. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The combined ratio excluding the effect of catastrophes should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the combined ratio excluding the effect of catastrophes to combined ratio is provided in the schedule, "Property-Liability Results". Average underlying loss (incurred pure premium) and expense is calculated as the underlying combined ratio (a non-GAAP measure) multiplied by the GAAP quarterly earned premium, which is annualized (multiplied by 4) (“average premium”). We believe that this measure is useful to investors and it is used by management for the same reasons noted above for the underlying combined ratio. A reconciliation of average underlying loss and expense is provided in the schedule, "Allstate Brand Auto and Homeowners Underlying Loss and Expense". Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics" and "Encompass Brand Profitability Measures and Statistics". Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization of purchased intangible assets ("underlying combined ratio") is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio and the effect of amortization of purchased intangible assets on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization of purchased intangible assets. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. Amortization of purchased intangible assets relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedules "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "Auto, Homeowners and Other Personal Lines Underlying Combined Ratios", "Allstate Personal Lines - Auto, Homeowners, Other Personal Lines and Commercial Lines Profitability Measures" and "Emerging Businesses - Esurance, Encompass, Other Business Lines, and Answer Financial Profitability Measures". Operating income return on common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month operating income by the average of common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on common shareholders' equity is the most directly comparable GAAP measure. We use operating income as the numerator for the same reasons we use operating income, as discussed above. We use average common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily attributable to the Company’s earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income applicable to common shareholders and return on common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine operating income return on common shareholders' equity from return on common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of operating income return on common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have operating income return on common shareholders' equity and return on common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income return on common shareholders' equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Operating income return on common shareholders' equity should not be considered a substitute for return on common shareholders' equity and does not reflect the overall profitability of our business. A reconciliation of return on common shareholders' equity and operating income return on common shareholders' equity can be found in the schedule, "Return on Common Shareholders' Equity". Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAP measure. It is calculated by dividing common shareholders’ equity after excluding the impact of unrealized net capital gains and losses on fixed income securities and related DAC, DSI and life insurance reserves by total common shares outstanding plus dilutive potential common shares outstanding. We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. We believe the non-GAAP ratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business. A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share".