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): February 1, 2017

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 February 1, 2017, announcing its financial results for the fourth quarter of 2016, and the Registrant’s fourth 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 February 1, 2017

99.2 Fourth 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: February 1, 2017

Exhibit

Exhibit 99.1

https://cdn.kscope.io/07e5bd10f87c67aad593842f551832cd-earningsreleaseimagea06.jpg

FOR IMMEDIATE RELEASE

Contacts:

Greg Burns John Griek

Media Relations Investor Relations

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

Allstate Finishes 2016 with Strong Profitability

Company continues to build long-term growth platforms

NORTHBROOK, Ill., February 1, 2017 – The Allstate Corporation (NYSE: ALL) today reported financial results for the fourth quarter and full year of 2016. The financial highlights:



The Allstate Corporation Consolidated Highlights
	Three months ended December 31,						Twelve months ended December 31,
($ in millions, except per share data and ratios)	2016		2015		% / pts Change		2016			2015			% / pts Change
Consolidated revenues	$	9,278	$	8,691	6.8		$	36,534		$	35,653		2.5
Net income applicable to common shareholders	811		460		76.3		1,761			2,055			(14.3	)
per diluted common share	2.18		1.18		84.7		4.67			5.05			(7.5	)
Operating income*	807		625		29.1		1,838			2,113			(13.0	)
per diluted common share*	2.17		1.60		35.6		4.87			5.19			(6.2	)
Return on common shareholders’ equity
Net income applicable to common shareholders							9.5		%	10.6		%	(1.1) pts
Operating income*							10.4		%	11.6		%	(1.2) pts
Book value per common share							50.77			47.34			7.2
Property-Liability combined ratio
Recorded	89.9		92.0		(2.1) pts		96.1			94.9			1.2 pts
Underlying combined ratio* (excludes catastrophes, prior year reserve reestimates and amortization of purchased intangibles)	87.7		87.4		0.3 pts		87.9			88.7			(0.8) pts
Catastrophe losses	303		358		(15.4	)	2,572			1,719			49.6


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

"Allstate's ability to execute operational improvements in a challenging environment delivered excellent results in 2016,” said Tom Wilson, chairman and chief executive officer of The Allstate Corporation. “In the fourth quarter, net income was $811 million, with operating earnings per share* of $2.17. For the full year, net income was $1.76 billion and operating income* was $1.84 billion on total revenues of $36.5 billion. Overall insurance policies in force declined modestly as strong growth at Allstate Benefits was more than offset by a decline in Property-Liability insurance caused by auto profit improvement actions. The recorded combined ratio for the year was 96.1 as the impact of an $853 million increase in catastrophe losses was partially offset by good underlying insurance margins. The full-year underlying combined ratio* of 87.9 was at the favorable end of our annual outlook range of 88-90, as the auto profit improvement plan was on pace, homeowners margins were maintained and expenses were well controlled. Continuation of these initiatives are expected to result in an annual underlying combined ratio* of 87-89⁽¹⁾ for 2017.

__________

⁽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 date.

“Proactive management of the investment portfolio in a volatile environment generated a total return of 4.4% for 2016. We simultaneously broadened the company's strategic platforms, forming Arity to leverage capabilities in the developing telematics business in 2016 and acquiring SquareTrade in January 2017 to expand our protection offerings to include consumer devices. Shareholders were served well by returning $1.8 billion of capital through dividends and share repurchases. Allstate continues to invest in our people and communities, in keeping with our view that corporations can do more,” concluded Wilson.

Full Year 2016 Financial Highlights


•	Total 2016 revenue of $36.5 billion reflected a 3.3% increase in property-liability insurance premium and a 5.4% increase in Allstate Financial premium and contract charges compared to the prior year.


•	Property-liability net written premium increased 2.4% in 2016 compared to 2015, as the average auto insurance premium increase of 6.3% in the Allstate Brand was offset by a 2.8% decline in policies in force across all three underwriting brands.

•

Total return on the $81.8 billion investment portfolio was a strong 4.4% for 2016, despite continued low market yields. Net investment income of $3.0 billion was 3.6% lower than in 2015, primarily due to a shortening of the fixed income portfolio duration and a shift to equity investments that will optimize long-term returns per unit of risk. Performance-based investments, which includes private equity and real estate, grew by 17.2% to $6.0 billion and generated $611 million of net investment income, which was $13 million higher than 2015. Total realized capital losses of $90 million were recognized for the year, as impairment losses were partially offset by net realized gains on sales.


•	Net income applicable to common shareholders was $1.8 billion, or $4.67 per diluted share in 2016, compared to $2.1 billion, or $5.05 per diluted share in 2015, as higher catastrophe losses and lower investment income more than offset the improvement in the underlying combined ratio.

•

Total operating income* was $1.8 billion, or $4.87 per diluted share in 2016, compared to $2.1 billion, or $5.19 per diluted share in 2015. Property-liability underwriting income of $1.2 billion for 2016 was $349 million lower than the prior year, due to an $853 million increase in pre-tax catastrophe losses, partially offset by improved underlying combined ratios across all three brands. The Allstate brand auto underlying combined ratio* improved 0.9 points for the year. The Esurance auto underlying combined ratio* of 102.4 improved 5.1 points in 2016 compared to 2015. Allstate Financial operating income of $448 million for 2016 was $61 million lower than 2015, due primarily to lower fixed income portfolio yields.

Operating Results: Fourth Quarter 2016


•	Total revenue of $9.3 billion in the fourth quarter of 2016 increased by 6.8% compared to the prior year quarter.


◦	Property-liability insurance premiums increased 2.8%.


◦	Allstate Financial premiums and contract charges rose 4.9%.


◦	Net investment income increased 12.8%.


◦	Realized capital gains were $2 million, compared to losses of $250 million in the prior year quarter.


•	Net income applicable to common shareholders was $811 million, or $2.18 per diluted share, in the fourth quarter of 2016, compared to $460 million, or $1.18 per diluted share, in the fourth quarter of 2015. Operating income* was $807 million in the fourth quarter of 2016, compared to $625 million in the fourth quarter of 2015.

•

Property-liability net income of $761 million was $268 million higher than the fourth quarter of 2015. Underwriting income of $796 million was $185 million above the prior year quarter, driven by a lower loss ratio and partially offset by a higher expense ratio. The lower loss ratio was primarily driven by higher average premium, improved loss trends, lower catastrophes and larger favorable prior year reserve releases.


◦	The underlying combined ratio* of 87.7 for the fourth quarter of 2016 was 0.3 points higher than the fourth quarter of 2015, reflecting an increased expense ratio, driven by investments in growth, and an increased Allstate brand homeowners underlying combined ratio as compared to a very favorable fourth quarter of 2015. This was partially offset by improved Allstate brand auto loss trends.



Property-Liability Results
	Three months ended December 31,			Twelve months ended December 31,
(% to earned premiums)	2016	2015	pts Change	2016	2015	pts Change
Recorded Combined Ratio	89.9	92.0	(2.1) pts	96.1	94.9	1.2 pts
Allstate Brand Auto	95.3	98.6	(3.3) pts	98.6	98.9	(0.3) pts
Allstate Brand Homeowners	68.7	71.0	(2.3) pts	83.7	78.6	5.1 pts
Allstate Brand Other Personal Lines	87.1	80.3	6.8 pts	89.6	87.5	2.1 pts
Esurance	105.0	107.0	(2.0) pts	107.5	110.3	(2.8) pts
Encompass	90.0	95.5	(5.5) pts	99.9	102.0	(2.1) pts
Underlying Combined Ratio*	87.7	87.4	0.3 pts	87.9	88.7	(0.8) pts
Allstate Brand Auto	96.1	97.6	(1.5) pts	96.4	97.3	(0.9) pts
Allstate Brand Homeowners	59.1	56.0	3.1 pts	59.5	60.5	(1.0) pts
Allstate Brand Other Personal Lines	76.7	71.9	4.8 pts	78.5	78.8	(0.3) pts
Esurance	105.0	105.3	(0.3) pts	105.2	108.4	(3.2) pts
Encompass	90.7	92.3	(1.6) pts	90.3	92.6	(2.3) pts

◦

Allstate brand auto net written premium growth of 3.9% in the fourth quarter of 2016 reflects a 7.0% increase in average premium, which more than offset a 2.9% decline in policies in force. The recorded combined ratio of 95.3 in the fourth quarter of 2016 was 3.3 points better than the prior year quarter and was favorably impacted by 2.0 points of prior year reserve reestimates in addition to favorable current accident year reserve development. The underlying combined ratio* in the fourth quarter of 2016 was 1.5 points better than the fourth quarter of 2015, due to higher average premium and moderating loss costs, partially offset by higher expenses. Quarterly profitability results are subject to fluctuations due to items such as abnormal weather patterns, reserve reestimates and expense timing, while full year results are often less volatile.

◦

Allstate brand homeowners net written premium increased slightly in the fourth quarter of 2016 compared to the fourth quarter of 2015, as average premium increased by 1.5% while policies in force declined by 1.2%. The recorded combined ratio of 68.7 in the fourth quarter of 2016 was 2.3 points better than the prior year quarter due to lower catastrophe losses and higher favorable prior year reserve reestimates. The underlying combined ratio* of 59.1 in the fourth quarter of 2016 continued to reflect strong underlying profitability.

◦

Allstate brand other personal lines net written premium increased 4.5% in the fourth quarter of 2016, while overall policies in force declined 0.1%. The recorded combined ratio was 87.1 in the fourth quarter of 2016, an increase of 6.8 points compared to the prior year quarter due primarily to higher expenses, elevated catastrophes and unfavorable prior year reserve development. The underlying combined ratio* was 76.7 in the fourth quarter of 2016.

◦

Esurance net written premium growth of 5.6% compared to the prior year quarter reflects a 5.5% increase in auto average premium and a modest increase in policies in force. The recorded combined ratio of 105.0 was 2.0 points lower in the fourth quarter of 2016, primarily driven by a lower expense ratio that was partially offset by a higher loss ratio. The auto loss ratio of 76.0 in the fourth quarter was 0.8 points higher than the prior year quarter, as increased auto frequency and severity more than offset higher earned premium. The homeowners loss ratio in the fourth quarter was 61.6 while the combined ratio of 138.5 continues to be adversely impacted by high start-up costs.

◦

Encompass net written premium declined by 10.2% and policies in force were 13.4% lower in the fourth quarter of 2016 compared to the prior year quarter, reflecting our continued focus on improving returns in this business. The majority of the decline in policies in force was in six states. Both the recorded combined ratio of 90.0 and underlying combined ratio* of 90.7 improved in the fourth quarter of 2016 compared to the same period a year ago.


•	Allstate Financial net income was $127 million and operating income was $130 million in the fourth quarter of 2016. Operating income was $32 million higher than the prior year quarter which was largely the result of performance-based investment returns that were in excess of long-term expectations.



Allstate Financial Results
	Three months ended December 31,							Twelve months ended December 31,
($ in millions)	2016		2015			% Change		2016		2015		% Change
Net Income	$	127	$	39		225.6		$	391	$	663	(41.0	)
Allstate Life	58		55			5.5		219		229		(4.4	)
Allstate Benefits	22		20			10.0		96		104		(7.7	)
Allstate Annuities	47		(36		)	NM		76		330		(77.0	)
Operating Income	$	130	$	98		32.7		$	448	$	509	(12.0	)
Allstate Life	66		67			(1.5	)	247		239		3.3
Allstate Benefits	23		23			—		100		104		(3.8	)
Allstate Annuities	41		8			NM		101		166		(39.2	)

NM = not meaningful


◦	Allstate Life net income was $58 million and operating income was $66 million in the fourth quarter of 2016. Operating income was $1 million lower than the prior year quarter as higher premiums and improved mortality were offset by lower net investment income.


◦	Allstate Benefits net income was $22 million and operating income was $23 million in the fourth quarter of 2016. Operating income was flat to the prior year quarter, as new business growth was offset by higher benefit costs and on-going investments in the business.


◦	Allstate Annuities net income was $47 million and operating income was $41 million in the fourth quarter of 2016. Operating income was $33 million higher than the prior year quarter, primarily driven by higher performance-based investment income, which included income realization on direct real estate investments and significant appreciation on a few funds.

•

Allstate Investments carrying value of $81.8 billion at year-end 2016 is largely comprised of fixed income securities, which represents 71% of the total portfolio. Investments carrying value increased by $4.0 billion above year-end 2015 and included $1.25 billion attributable to the debt issuance related to the acquisition of SquareTrade and higher unrealized net capital gains of $745 million, as fixed income and public equity valuations increased. 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 December 31,							Twelve months ended December 31,
($ in millions, except ratios)	2016			2015			% / pts Change	2016			2015			% / pts Change
Investment Results
Net investment income	$	801		$	710		12.8	$	3,042		$	3,156		(3.6	)
Realized capital gains and losses	2			(250		)	NM	(90		)	30			NM
Change in unrealized net capital gains, pre-tax	(1,245		)	(429		)	NM	745			(2,148		)	NM
Total return on investment portfolio	(0.7		)%	(0.2		)%	(0.5) pts	4.4		%	1.0		%	3.4 pts


◦	Net investment income of $801 million increased 12.8% or $91 million in the fourth quarter of 2016 from the prior year quarter. This increase reflects strong performance-based results partially offset by lower interest income on market-based investments, which was impacted by reinvestment and portfolio repositioning.


◦	Net realized capital gains were $2 million in the fourth quarter of 2016, compared to losses of $250 million in the prior year quarter. Net realized gains on sales of $47 million and derivative gains of $25 million, were offset by impairment and change in intent losses of $70 million.

Proactive Capital Management

“Allstate continued to proactively manage shareholders’ capital by returning $369 million during the fourth quarter through a combination of $122 million in common stock dividends and repurchasing $247 million of outstanding shares,” said Steve Shebik, chief financial officer. “For the full year we returned a total of $1.8 billion to shareholders. As of December 31, 2016, $691 million remained on the $1.5 billion authorization. Allstate completed the acquisition of SquareTrade in January 2017 utilizing the proceeds from the December 2016 debt issuance and corporate cash, with no impact on Allstate’s existing share repurchase program. Operating income return on common shareholders’ equity* was 10.4% for 2016. Book value per diluted common share of $50.77 was 7.2% higher than December 31, 2015.”

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, February 2.

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
CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)	Three months ended December 31,						Twelve months ended December 31,
	2016			2015			2016			2015
	(unaudited)						(unaudited)
Revenues
Property-liability insurance premiums	$	7,901		$	7,684		$	31,307		$	30,309
Life and annuity premiums and contract charges	574			547			2,275			2,158
Net investment income	801			710			3,042			3,156
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(72		)	(166		)	(313		)	(452		)
OTTI losses reclassified to (from) other comprehensive income	2			16			10			36
Net OTTI losses recognized in earnings	(70		)	(150		)	(303		)	(416		)
Sales and other realized capital gains and losses	72			(100		)	213			446
Total realized capital gains and losses	2			(250		)	(90		)	30
	9,278			8,691			36,534			35,653

Costs and expenses
Property-liability insurance claims and claims expense	5,083			5,199			22,221			21,034
Life and annuity contract benefits	464			456			1,857			1,803
Interest credited to contractholder funds	168			183			726			761
Amortization of deferred policy acquisition costs	1,157			1,116			4,550			4,364
Operating costs and expenses	1,063			938			4,106			4,081
Restructuring and related charges	9			7			30			39
Interest expense	77			73			295			292
	8,021			7,972			33,785			32,374

Gain on disposition of operations	1			1			5			3

Income from operations before income tax expense	1,258			720			2,754			3,282

Income tax expense	418			231			877			1,111

Net income	840			489			1,877			2,171

Preferred stock dividends	29			29			116			116

Net income applicable to common shareholders	$	811		$	460		$	1,761		$	2,055

Earnings per common share:

Net income applicable to common shareholders per common share – Basic	$	2.20		$	1.19		$	4.72		$	5.12

Weighted average common shares – Basic	368.0			385.0			372.8			401.1

Net income applicable to common shareholders per common share – Diluted	$	2.18		$	1.18		$	4.67		$	5.05

Weighted average common shares – Diluted	372.5			390.2			377.3			406.8

Cash dividends declared per common share	$	0.33		$	0.30		$	1.32		$	1.20



THE ALLSTATE CORPORATION
BUSINESS RESULTS
($ in millions, except ratios)	Three months ended						Twelve months ended
	December 31,						December 31,
	2016			2015			2016			2015
Property-Liability
Premiums written	$	7,723		$	7,551		$	31,600		$	30,871
Premiums earned	$	7,901		$	7,684		$	31,307		$	30,309
Claims and claims expense	(5,083		)	(5,199		)	(22,221		)	(21,034		)
Amortization of deferred policy acquisition costs	(1,086		)	(1,052		)	(4,267		)	(4,102		)
Operating costs and expenses	(927		)	(812		)	(3,580		)	(3,575		)
Restructuring and related charges	(9		)	(10		)	(29		)	(39		)
Underwriting income	796			611			1,210			1,559
Net investment income	338			280			1,266			1,237
Income tax expense on operations	(383		)	(299		)	(812		)	(952		)
Realized capital gains and losses, after-tax	10			(99		)	—			(154		)
Net income applicable to common shareholders	$	761		$	493		$	1,664		$	1,690
Catastrophe losses	$	303		$	358		$	2,572		$	1,719
Amortization of purchased intangible assets	$	5		$	13		$	32		$	50
Operating ratios:
Claims and claims expense ratio	64.3			67.6			71.0			69.4
Expense ratio	25.6			24.4			25.1			25.5
Combined ratio	89.9			92.0			96.1			94.9
Effect of catastrophe losses on combined ratio	3.8			4.7			8.2			5.7
Effect of prior year reserve reestimates on combined ratio	(1.7		)	(0.4		)	(0.1		)	0.3
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio	(0.1		)	(0.2		)	—			—
Effect of amortization of purchased intangible assets on combined ratio	—			0.1			0.1			0.2
Effect of Discontinued Lines and Coverages on combined ratio	—			—			0.3			0.2

Allstate Financial
Premiums and contract charges	$	574		$	547		$	2,275		$	2,158
Net investment income	453			420			1,734			1,884
Contract benefits	(464		)	(456		)	(1,857		)	(1,803		)
Interest credited to contractholder funds	(177		)	(186		)	(723		)	(760		)
Amortization of deferred policy acquisition costs	(70		)	(65		)	(277		)	(257		)
Operating costs and expenses	(127		)	(119		)	(497		)	(472		)
Restructuring and related charges	—			3			(1		)	—
Income tax expense on operations	(59		)	(46		)	(206		)	(241		)
Operating income	130			98			448			509
Realized capital gains and losses, after-tax	(8		)	(62		)	(54		)	173
Valuation changes on embedded derivatives that are not hedged, after-tax	6			2			(2		)	(1		)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(1		)	—			(4		)	(3		)
Gain on disposition of operations, after-tax	—			1			3			2
Change in accounting for investments in qualified affordable housing projects, after-tax	—			—			—			(17		)
Net income applicable to common shareholders	$	127		$	39		$	391		$	663

Corporate and Other
Net investment income	$	10		$	10		$	42		$	35
Operating costs and expenses	(86		)	(80		)	(324		)	(326		)
Income tax benefit on operations	29			27			106			109
Preferred stock dividends	(29		)	(29		)	(116		)	(116		)
Operating loss	(76		)	(72		)	(292		)	(298		)
Realized capital gains and losses, after-tax	(1		)	—			(2		)	—
Net loss applicable to common shareholders	$	(77	)	$	(72	)	$	(294	)	$	(298	)
Consolidated net income applicable to common shareholders	$	811		$	460		$	1,761		$	2,055



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in millions, except par value data)	December 31, 2016			December 31, 2015
Assets	(unaudited)
Investments:
Fixed income securities, at fair value (amortized cost $56,576 and $57,201)	$	57,839		$	57,948
Equity securities, at fair value (cost $5,157 and $4,806)	5,666			5,082
Mortgage loans	4,486			4,338
Limited partnership interests	5,814			4,874
Short-term, at fair value (amortized cost $4,288 and $2,122)	4,288			2,122
Other	3,706			3,394
Total investments	81,799			77,758
Cash	436			495
Premium installment receivables, net	5,597			5,544
Deferred policy acquisition costs	3,954			3,861
Reinsurance recoverables, net	8,745			8,518
Accrued investment income	567			569
Property and equipment, net	1,065			1,024
Goodwill	1,219			1,219
Other assets	1,835			2,010
Separate Accounts	3,393			3,658
Total assets	$	108,610		$	104,656
Liabilities
Reserve for property-liability insurance claims and claims expense	$	25,250		$	23,869
Reserve for life-contingent contract benefits	12,239			12,247
Contractholder funds	20,260			21,295
Unearned premiums	12,583			12,202
Claim payments outstanding	879			842
Deferred income taxes	487			90
Other liabilities and accrued expenses	6,599			5,304
Long-term debt	6,347			5,124
Separate Accounts	3,393			3,658
Total liabilities	88,037			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, 366 million and 381 million shares outstanding	9			9
Additional capital paid-in	3,303			3,245
Retained income	40,678			39,413
Deferred ESOP expense	(6		)	(13		)
Treasury stock, at cost (534 million and 519 million shares)	(24,741		)	(23,620		)
Accumulated other comprehensive income:
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	57			56
Other unrealized net capital gains and losses	1,091			608
Unrealized adjustment to DAC, DSI and insurance reserves	(95		)	(44		)
Total unrealized net capital gains and losses	1,053			620
Unrealized foreign currency translation adjustments	(50		)	(60		)
Unrecognized pension and other postretirement benefit cost	(1,419		)	(1,315		)
Total accumulated other comprehensive loss	(416		)	(755		)
Total shareholders’ equity	20,573			20,025
Total liabilities and shareholders’ equity	$	108,610		$	104,656



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)	Twelve months ended December 31,
	2016			2015
Cash flows from operating activities	(unaudited)
Net income	$	1,877		$	2,171
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	382			371
Realized capital gains and losses	90			(30		)
Gain on disposition of operations	(5		)	(3		)
Interest credited to contractholder funds	726			761
Changes in:
Policy benefits and other insurance reserves	631			473
Unearned premiums	362			638
Deferred policy acquisition costs	(165		)	(239		)
Premium installment receivables, net	(42		)	(134		)
Reinsurance recoverables, net	(264		)	(178		)
Income taxes	417			(119		)
Other operating assets and liabilities	(16		)	(95		)
Net cash provided by operating activities	3,993			3,616
Cash flows from investing activities
Proceeds from sales
Fixed income securities	25,061			28,693
Equity securities	5,546			3,754
Limited partnership interests	881			1,101
Mortgage loans	—			6
Other investments	262			545
Investment collections
Fixed income securities	4,533			4,432
Mortgage loans	501			538
Other investments	421			293
Investment purchases
Fixed income securities	(27,990		)	(30,758		)
Equity securities	(5,950		)	(4,960		)
Limited partnership interests	(1,450		)	(1,343		)
Mortgage loans	(646		)	(687		)
Other investments	(885		)	(902		)
Change in short-term investments, net	(2,446		)	385
Change in other investments, net	(51		)	(52		)
Purchases of property and equipment, net	(313		)	(303		)
Net cash (used in) provided by investing activities	(2,526		)	742
Cash flows from financing activities
Proceeds from issuance of long-term debt	1,236			—
Repayments of long-term debt	(17		)	(20		)
Contractholder fund deposits	1,049			1,052
Contractholder fund withdrawals	(2,087		)	(2,327		)
Dividends paid on common stock	(486		)	(483		)
Dividends paid on preferred stock	(116		)	(116		)
Treasury stock purchases	(1,337		)	(2,808		)
Shares reissued under equity incentive plans, net	164			130
Excess tax benefits on share-based payment arrangements	32			45
Other	36			7
Net cash used in financing activities	(1,526		)	(4,520		)
Net decrease in cash	(59		)	(162		)
Cash at beginning of year	495			657
Cash at end of year	$	436		$	495

The following table presents the investment portfolio by strategy as of December 31, 2016.



($ in millions)	Total		Market-Based Core		Market-Based Active		Performance-Based Long-Term		Performance-Based Opportunistic
Fixed income securities	$	57,839	$	50,527	$	7,246	$	66	$	—
Equity securities	5,666		4,221		1,346		99		—
Mortgage loans	4,486		4,486		—		—		—
Limited partnership interests	5,814		502		—		5,292		20
Short-term investments	4,288		3,475		813		—		—
Other	3,706		3,014		160		532		—
Total	$	81,799	$	66,225	$	9,565	$	5,989	$	20

Property-Liability	$	42,722	$	31,216	$	8,313	$	3,181	$	12
Allstate Financial	36,840		32,772		1,252		2,808		8
Corporate & Other	2,237		2,237		—		—		—
Total	$	81,799	$	66,225	$	9,565	$	5,989	$	20

The following table presents investment income by investment strategy for the three months and twelve months ended December 31.



	Three months ended December 31,						Twelve months ended December 31,
($ in millions)	2016			2015			2016			2015
Market-Based Core	$	587		$	614		$	2,340		$	2,495
Market-Based Active	68			59			262			213
Performance-Based Long-Term	190			74			606			589
Performance-Based Opportunistic	—			2			5			9
Investment income, before expense	845			749			3,213			3,306
Investment expense	(44		)	(39		)	(171		)	(150		)
Net investment income	$	801		$	710		$	3,042		$	3,156

The following table presents investment income by investment type and strategy for the three months and twelve months ended December 31, 2016.



($ in millions)	Total			Market-Based Core			Market-Based Active		Performance-Based Long-Term		Performance-Based Opportunistic
Three months ended December 31, 2016
Fixed income securities	$	514		$	455		$	58	$	1	$	—
Equity securities	34			29			5		—		—
Mortgage loans	55			55			—		—		—
Limited partnership interests	178			(1		)	—		179		—
Short-term investments	5			4			1		—		—
Other	59			45			4		10		—
Investment income, before expense	845			$	587		$	68	$	190	$	—
Investment expense	(44		)
Net investment income	$	801

Property-Liability	$	359		$	211		$	59	$	89	$	—
Allstate Financial	474			364			9		101		—
Corporate & Other	12			12			—		—		—
Investment income, before expense	$	845		$	587		$	68	$	190	$	—

Twelve months ended December 31, 2016
Fixed income securities	$	2,060		$	1,829		$	223	$	4	$	4
Equity securities	137			114			23		—		—
Mortgage loans	217			217			—		—		—
Limited partnership interests	561			—			—		561		—
Short-term investments	16			12			4		—		—
Other	222			168			12		41		1
Investment income, before expense	3,213			$	2,340		$	262	$	606	$	5
Investment expense	(171		)
Net investment income	$	3,042

Property-Liability	$	1,356		$	828		$	228	$	297	$	3
Allstate Financial	1,808			1,463			34		309		2
Corporate & Other	49			49			—		—		—
Investment income, before expense	$	3,213		$	2,340		$	262	$	606	$	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 net income applicable to common shareholders and operating income. Taxes on adjustments to reconcile net income applicable to common shareholders and operating income 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 December 31,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2016			2015			2016			2015			2016			2015			2016			2015
Net income applicable to common shareholders	$	761		$	493		$	127		$	39		$	811		$	460		$	2.18		$	1.18
Realized capital gains and losses, after-tax	(10		)	99			8			62			(1		)	161			—			0.41
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			(6		)	(2		)	(6		)	(2		)	(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	—			—			1			—			1			—			—			—
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	(2		)	(1		)	—			—			(2		)	(1		)	—			—
Amortization of purchased intangible assets, after-tax	4			8			—			—			4			8			0.01			0.02
Gain on disposition of operations, after-tax	—			—			—			(1		)	—			(1		)	—			—
Operating income*	$	753		$	599		$	130		$	98		$	807		$	625		$	2.17		$	1.60

	For the twelve months ended December 31,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2016			2015			2016			2015			2016			2015			2016			2015
Net income applicable to common shareholders	$	1,664		$	1,690		$	391		$	663		$	1,761		$	2,055		$	4.67		$	5.05
Realized capital gains and losses, after-tax	—			154			54			(173		)	56			(19		)	0.15			(0.05		)
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			2			1			2			1			—			—
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	—			—			4			3			4			3			0.01			—
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	(3		)	(2		)	—			—			(3		)	(2		)	(0.01		)	—
Amortization of purchased intangible assets, after-tax	21			32			—			—			21			32			0.06			0.08
Gain on disposition of operations, after-tax	—			—			(3		)	(2		)	(3		)	(2		)	(0.01		)	—
Change in accounting for investments in qualified affordable housing projects, after-tax (all tax)	—			28			—			17			—			45			—			0.11
Operating income*	$	1,682		$	1,902		$	448		$	509		$	1,838		$	2,113		$	4.87		$	5.19

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 December 31,
	2016			2015
Return on common shareholders’ equity
Numerator:
Net income applicable to common shareholders	$	1,761		$	2,055
Denominator:
Beginning common shareholders’ equity ⁽¹⁾	$	18,279		$	20,558
Ending common shareholders’ equity ⁽¹⁾	18,827			18,279
Average common shareholders’ equity	$	18,553		$	19,419
Return on common shareholders’ equity	9.5		%	10.6		%



($ in millions)	For the twelve months ended December 31,
	2016			2015
Operating income return on common shareholders’ equity
Numerator:
Operating income	$	1,838		$	2,113

Denominator:
Beginning common shareholders’ equity	$	18,279		$	20,558
Unrealized net capital gains and losses	620			1,926
Adjusted beginning common shareholders’ equity	17,659			18,632

Ending common shareholders’ equity	18,827			18,279
Unrealized net capital gains and losses	1,053			620
Adjusted ending common shareholders’ equity	17,774			17,659
Average adjusted common shareholders’ equity	$	17,717		$	18,146
Operating income return on common shareholders’ equity*	10.4		%	11.6		%

_____________

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

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 combined ratio to the underlying combined ratio.



Property-Liability	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	89.9		92.0		96.1		94.9
Effect of catastrophe losses	(3.8	)	(4.7	)	(8.2	)	(5.7	)
Effect of prior year non-catastrophe reserve reestimates	1.6		0.2		0.1		(0.3	)
Effect of amortization of purchased intangible assets	—		(0.1	)	(0.1	)	(0.2	)
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization of purchased intangible assets (“underlying combined ratio”)*	87.7		87.4		87.9		88.7

Effect of prior year catastrophe reserve reestimates	(0.1	)	(0.2	)	—		—

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



Allstate Protection Auto Insurance	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	96.0		99.3		99.2		99.9
Effect of catastrophe losses	(1.2	)	(1.0	)	(2.7	)	(1.2	)
Effect of prior year non-catastrophe reserve reestimates	2.1		0.2		0.7		(0.2	)
Effect of amortization of purchased intangible assets	—		(0.2	)	(0.1	)	(0.2	)
Underlying combined ratio*	96.9		98.3		97.1		98.3

Effect of prior year catastrophe reserve reestimates	—		(0.2	)	—		(0.1	)



Allstate Protection Homeowners Insurance	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	69.9		71.8		85.2		79.9
Effect of catastrophe losses	(10.6	)	(14.6	)	(24.4	)	(18.4	)
Effect of prior year non-catastrophe reserve reestimates	1.3		0.3		0.5		0.4
Underlying combined ratio*	60.6		57.5		61.3		61.9

Effect of prior year catastrophe reserve reestimates	(0.5	)	(0.5	)	0.2		—



Allstate Brand - Total	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	89.0		91.0		94.9		93.4
Effect of catastrophe losses	(4.0	)	(4.9	)	(8.5	)	(5.8	)
Effect of prior year non-catastrophe reserve reestimates	1.5		0.1		0.4		(0.2	)
Underlying combined ratio*	86.5		86.2		86.8		87.4

Effect of prior year catastrophe reserve reestimates	(0.1	)	(0.2	)	—		(0.1	)



Allstate Brand - Auto Insurance	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	95.3		98.6		98.6		98.9
Effect of catastrophe losses	(1.2	)	(1.1	)	(2.8	)	(1.3	)
Effect of prior year non-catastrophe reserve reestimates	2.0		0.1		0.6		(0.3	)
Underlying combined ratio*	96.1		97.6		96.4		97.3

Effect of prior year catastrophe reserve reestimates	—		(0.2	)	(0.1	)	(0.1	)



Allstate Brand - Homeowners Insurance	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	68.7		71.0		83.7		78.6
Effect of catastrophe losses	(10.8	)	(15.0	)	(24.6	)	(18.3	)
Effect of prior year non-catastrophe reserve reestimates	1.2		—		0.4		0.2
Underlying combined ratio*	59.1		56.0		59.5		60.5

Effect of prior year catastrophe reserve reestimates	(0.5	)	(0.5	)	0.1		(0.1	)



Allstate Brand - Other Personal Lines	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	87.1		80.3		89.6		87.5
Effect of catastrophe losses	(9.7	)	(8.4	)	(11.8	)	(8.1	)
Effect of prior year non-catastrophe reserve reestimates	(0.7	)	—		0.7		(0.6	)
Underlying combined ratio*	76.7		71.9		78.5		78.8

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



Encompass Brand - Total	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	90.0		95.5		99.9		102.0
Effect of catastrophe losses	(3.1	)	(4.8	)	(9.2	)	(8.7	)
Effect of prior year non-catastrophe reserve reestimates	3.8		1.6		(0.4	)	(0.7	)
Underlying combined ratio*	90.7		92.3		90.3		92.6

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



Esurance Brand - Auto Insurance	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	103.9		105.6		104.0		109.3
Effect of catastrophe losses	(1.0	)	(0.5	)	(1.5	)	(0.7	)
Effect of prior year non-catastrophe reserve reestimates	2.2		1.3		1.3		1.1
Effect of amortization of purchased intangible assets	(0.9	)	(2.3	)	(1.4	)	(2.2	)
Underlying combined ratio*	104.2		104.1		102.4		107.5

Effect of prior year catastrophe reserve reestimates	—		—		—		—

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 combined ratio to the Esurance brand underlying loss ratio and underlying combined ratio.



Esurance Brand - Total	Three months ended December 31,				Twelve months ended December 31,
	2016		2015		2016		2015
Combined ratio	105.0		107.0		107.5		110.3
Effect of catastrophe losses	(1.2	)	(0.8	)	(2.2	)	(0.9	)
Effect of prior year non-catastrophe reserve reestimates	2.1		1.3		1.3		1.2
Effect of amortization of purchased intangible assets	(0.9	)	(2.2	)	(1.4	)	(2.2	)
Underlying combined ratio*	105.0		105.3		105.2		108.4
Expense ratio, excluding the effect of amortization of purchased intangible assets	(28.7	)	(30.0	)	(30.3	)	(33.0	)
Underlying loss ratio*	76.3		75.3		74.9		75.4

# # # # #

allcorp123116investorsup

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 (*). 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 Fourth 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 Historical Summary of Consolidated Operating and Financial Position Data 11 Property-Liability Operations Property-Liability Results 12 Historical Property-Liability Results 13 Property-Liability Underwriting Results by Area of Business 14 Historical Underwriting Results by Area of Business 15 Property-Liability Premiums Written by Brand 16 Impact of Net Rate Changes Approved on Premiums Written 17 Policies in Force and Other Statistics 18 Allstate Brand Profitability Measures 19 Allstate Brand Statistics 20 Allstate Brand Auto Claim Frequency Analysis 21-23 Esurance Brand Profitability Measures and Statistics 24 Encompass Brand Profitability Measures and Statistics 25 Auto Profitability Measures 26 Homeowners Profitability Measures 27 Other Personal Lines Profitability Measures 28 Commercial Lines Profitability Measures 29 Other Business Lines Profitability Measures 30 Auto, Homeowners and Other Personal Lines Underlying Combined Ratios 31 Allstate Brand Auto and Homeowners Underlying Loss and Expense 32 Homeowners Supplemental Information 33 Catastrophe Losses by Brand 34 Effect of Catastrophe Losses on the Combined Ratio 35 Catastrophe by Size of Event 36 Prior Year Reserve Reestimates 37 Historical Prior Year Reserve Reestimates 38 Historical Property-Liability Loss Reserves 39 Asbestos and Environmental Reserves 40 Allstate Personal Lines - Auto, Homeowners, Other Personal Lines and Commercial Lines Profitability Measures 41 Emerging Businesses - Esurance, Encompass, Other Business Lines and Answer Financial Profitability Measures 42 Allstate Financial Operations Allstate Financial Segment Results 43 Historical Allstate Financial Results 44 Return on Attributed Equity 45 Allstate Financial Premiums and Contract Charges 46 Allstate Financial Change in Contractholder Funds 47 Allstate Financial Analysis of Net Income 48 Allstate Financial Weighted Average Investment Spreads 49 Allstate Financial Supplemental Product Information 50 Allstate Financial Insurance Policies and Annuities in Force 51 Allstate Life, Allstate Annuities and Allstate Benefits Results and Product Information 52,53 Corporate and Other Segment Results 54 Investments Investments 55 Limited Partnership Interests 56 Unrealized Net Capital Gains and Losses on Security Portfolio by Type 57 Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 58 Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 59 Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 60 Investment Results 61 Investment Position by Strategy 62 Investment Position by Strategy and Segment 63 Investment Results by Strategy and Segment 64 Investment Income and Realized Capital Gains and Losses By Investment Type and Strategy 65 Performance-Based Long-Term Investments 66 Definitions of Non-GAAP Measures 67 THE ALLSTATE CORPORATION Investor Supplement - Fourth Quarter 2016 Table of Contents

1 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Revenues Property-liability insurance premiums $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 7,684 $ 7,650 $ 7,549 $ 7,426 $ 31,307 $ 30,309 Life and annuity premiums and contract charges 574 571 564 566 547 538 536 537 2,275 2,158 Net investment income 801 748 762 731 710 807 789 850 3,042 3,156 Realized capital gains and losses: Total other-than-temporary impairment ("OTTI") losses (72) (73) (77) (91) (166) (186) (47) (53) (313) (452) OTTI losses reclassified to (from) other comprehensive income 2 - (2) 10 16 12 4 4 10 36 Net OTTI losses recognized in earnings (70) (73) (79) (81) (150) (174) (43) (49) (303) (416) Sales and other realized capital gains and losses 72 106 103 (68) (100) 207 151 188 213 446 Total realized capital gains and losses 2 33 24 (149) (250) 33 108 139 (90) 30 Total revenues 9,278 9,221 9,164 8,871 8,691 9,028 8,982 8,952 36,534 35,653 Costs and expenses Property-liability insurance claims and claims expense 5,083 5,553 5,901 5,684 5,199 5,255 5,587 4,993 22,221 21,034 Life and annuity contract benefits 464 484 454 455 456 460 446 441 1,857 1,803 Interest credited to contractholder funds 168 183 185 190 183 194 185 199 726 761 Amortization of deferred policy acquisition costs 1,157 1,138 1,126 1,129 1,116 1,092 1,086 1,070 4,550 4,364 Operating costs and expenses 1,063 1,021 1,040 982 938 992 1,061 1,090 4,106 4,081 Restructuring and related charges 9 5 11 5 7 9 19 4 30 39 Interest expense 77 73 72 73 73 73 73 73 295 292 Total costs and expenses 8,021 8,457 8,789 8,518 7,972 8,075 8,457 7,870 33,785 32,374 Gain (loss) on disposition of operations 1 1 1 2 1 2 1 (1) 5 3 Income from operations before income tax expense 1,258 765 376 355 720 955 526 1,081 2,754 3,282 Income tax expense 418 245 105 109 231 305 171 404 877 1,111 Net income $ 840 $ 520 $ 271 $ 246 $ 489 $ 650 $ 355 $ 677 $ 1,877 $ 2,171 Preferred stock dividends 29 29 29 29 29 29 29 29 116 116 Net income applicable to common shareholders $ 811 $ 491 $ 242 $ 217 $ 460 $ 621 $ 326 $ 648 $ 1,761 $ 2,055 Earnings per common share: (1) Net income applicable to common shareholders per common share - Basic $ 2.20 $ 1.32 $ 0.65 $ 0.57 $ 1.19 $ 1.56 $ 0.80 $ 1.56 $ 4.72 $ 5.12 Weighted average common shares - Basic 368.0 371.5 373.6 378.1 385.0 397.0 407.0 415.8 372.8 401.1 Net income applicable to common shareholders per common share - Diluted $ 2.18 $ 1.31 $ 0.64 $ 0.57 $ 1.18 $ 1.54 $ 0.79 $ 1.53 $ 4.67 $ 5.05 Weighted average common shares - Diluted 372.5 375.9 378.1 382.9 390.2 402.1 412.6 422.6 377.3 406.8 Cash dividends declared per common share $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 1.32 $ 1.20 (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) Twelve months endedThree months ended

2 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Contribution to income Net income applicable to common shareholders $ 811 $ 491 $ 242 $ 217 $ 460 $ 621 $ 326 $ 648 $ 1,761 $ 2,055 Realized capital gains and losses, after-tax (1) (22) (17) 96 161 (21) (69) (90) 56 (19) Valuation changes on embedded derivatives that are not hedged, after-tax (6) - 4 4 (2) 2 (4) 5 2 1 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 - 1 2 - 4 3 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (2) - - (1) (1) - - (1) (3) (2) Amortization of purchased intangible assets, after-tax 4 5 6 6 8 8 8 8 21 32 (Gain) loss on disposition of operations, after-tax - (1) (1) (1) (1) (1) (1) 1 (3) (2) Change in accounting for investments in qualified affordable housing projects, after-tax - - - - - - - 45 - 45 Operating income * $ 807 $ 474 $ 235 $ 322 $ 625 $ 610 $ 262 $ 616 $ 1,838 $ 2,113 Income per common share - Diluted Net income applicable to common shareholders $ 2.18 $ 1.31 $ 0.64 $ 0.57 $ 1.18 $ 1.54 $ 0.79 $ 1.53 $ 4.67 $ 5.05 Realized capital gains and losses, after-tax - (0.06) (0.04) 0.25 0.41 (0.05) (0.17) (0.21) 0.15 (0.05) Valuation changes on embedded derivatives that are not hedged, after-tax (0.02) - 0.01 0.01 (0.01) 0.01 (0.01) 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 - Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - - - - - - - (0.01) - Amortization of purchased intangible assets, after-tax 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.06 0.08 (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 Operating income * $ 2.17 $ 1.26 $ 0.62 $ 0.84 $ 1.60 $ 1.52 $ 0.63 $ 1.46 $ 4.87 $ 5.19 Weighted average common shares - Diluted 372.5 375.9 378.1 382.9 390.2 402.1 412.6 422.6 377.3 406.8 THE ALLSTATE CORPORATION CONTRIBUTION TO INCOME ($ in millions, except per share data) Twelve months endedThree months ended

3 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Property-Liability Property-Liability insurance premiums $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 7,684 $ 7,650 $ 7,549 $ 7,426 $ 31,307 $ 30,309 Net investment income 338 310 316 302 280 307 292 358 1,266 1,237 Realized capital gains and losses 14 53 26 (99) (153) (161) 49 28 (6) (237) Total Property-Liability revenues 8,253 8,232 8,156 7,926 7,811 7,796 7,890 7,812 32,567 31,309 Allstate Financial Life and annuity premiums and contract charges 574 571 564 566 547 538 536 537 2,275 2,158 Net investment income 453 427 435 419 420 491 489 484 1,734 1,884 Realized capital gains and losses (11) (21) - (49) (97) 194 59 111 (81) 267 Total Allstate Financial revenues 1,016 977 999 936 870 1,223 1,084 1,132 3,928 4,309 Corporate and Other Service fees (1) 1 1 1 1 1 - 1 1 4 3 Net investment income 10 11 11 10 10 9 8 8 42 35 Realized capital gains and losses (1) 1 (2) (1) - - - - (3) - Total Corporate and Other revenues before reclassification of services fees 10 13 10 10 11 9 9 9 43 38 Reclassification of service fees (1) (1) (1) (1) (1) (1) - (1) (1) (4) (3) Total Corporate and Other revenues 9 12 9 9 10 9 8 8 39 35 Consolidated revenues $ 9,278 $ 9,221 $ 9,164 $ 8,871 $ 8,691 $ 9,028 $ 8,982 $ 8,952 $ 36,534 $ 35,653 (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) Twelve months endedThree months ended

4 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2016 2016 2016 2016 2015 2016 2016 2016 2016 2015 Assets Liabilities Investments Reserve for property-liability insurance claims and $ 25,250 $ 25,450 $ 24,904 $ 24,605 $ 23,869 Fixed income securities, at fair value claims expense (amortized cost $56,576, $57,775, Reserve for life-contingent contract benefits 12,239 12,228 12,215 12,224 12,247 $55,770, $55,627 and $57,201) $ 57,839 $ 60,306 $ 58,129 $ 57,291 $ 57,948 Contractholder funds 20,260 20,583 20,845 21,092 21,295 Equity securities, at fair value Unearned premiums 12,583 12,772 12,300 12,036 12,202 (cost $5,157, $4,800, $4,924, Claim payments outstanding 879 934 946 852 842 $4,792 and $4,806) 5,666 5,288 5,265 5,117 5,082 Deferred income taxes 487 935 782 479 90 Mortgage loans 4,486 4,396 4,453 4,302 4,338 Other liabilities and accrued expenses 6,599 6,122 6,192 5,704 5,304 Limited partnership interests 5,814 5,588 5,407 5,091 4,874 Long-term debt 6,347 5,110 5,109 5,108 5,124 Short-term, at fair value Separate Accounts 3,393 3,469 3,438 3,507 3,658 (amortized cost $4,288, $1,863, $2,850, Total liabilities 88,037 87,603 86,731 85,607 84,631 $3,526 and $2,122) 4,288 1,863 2,850 3,526 2,122 Other 3,706 3,663 3,590 3,550 3,394 Equity Total investments 81,799 81,104 79,694 78,877 77,758 Preferred stock and additional capital paid-in, 1,746 1,746 1,746 1,746 1,746 72.2 thousand shares outstanding Common stock, 366 million, 368 million, 371 million, 375 million and 381 million shares outstanding 9 9 9 9 9 Additional capital paid-in 3,303 3,237 3,203 3,237 3,245 Retained income 40,678 39,990 39,623 39,505 39,413 Deferred ESOP expense (6) (13) (13) (13) (13) Treasury stock, at cost (534 million, 532 million, 529 million, 525 million and 519 million shares) (24,741) (24,537) (24,310) (23,994) (23,620) 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 57 56 49 31 56 Cash 436 389 446 531 495 Other unrealized net capital gains and losses 1,091 1,902 1,702 1,259 608 Premium installment receivables, net 5,597 5,799 5,593 5,558 5,544 Unrealized adjustment to DAC, DSI Deferred policy acquisition costs 3,954 3,886 3,819 3,807 3,861 and insurance reserves (95) (141) (127) (90) (44) Reinsurance recoverables, net (1) 8,745 8,922 8,650 8,573 8,518 Total unrealized net capital gains and losses 1,053 1,817 1,624 1,200 620 Accrued investment income 567 567 564 567 569 Unrealized foreign currency translation Property and equipment, net 1,065 1,013 1,011 1,011 1,024 adjustments (50) (48) (41) (46) (60) Goodwill 1,219 1,219 1,219 1,219 1,219 Unrecognized pension and other Other assets 1,835 2,169 2,850 2,297 2,010 postretirement benefit cost (1,419) (1,267) (1,288) (1,304) (1,315) Separate Accounts 3,393 3,469 3,438 3,507 3,658 Total accumulated other comprehensive income (loss) (416) 502 295 (150) (755) Total shareholders' equity 20,573 20,934 20,553 20,340 20,025 Total assets $ 108,610 $ 108,537 $ 107,284 $ 105,947 $ 104,656 Total liabilities and shareholders' equity $ 108,610 $ 108,537 $ 107,284 $ 105,947 $ 104,656 (1) THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ($ in millions) Reinsurance recoverables of unpaid losses related to Property-Liability were $6.18 billion, $6.35 billion, $6.03 billion, $5.96 billion and $5.89 billion as of December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively.

5 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Book value per common share Numerator: Common shareholders' equity (1) $ 18,827 $ 19,188 $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Denominator: Common shares outstanding and dilutive potential common shares outstanding 370.8 372.7 375.8 380.3 386.1 394.6 407.7 415.4 Book value per common share $ 50.77 $ 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 $ 18,827 $ 19,188 $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Unrealized net capital gains and losses on fixed income securities 727 1,506 1,407 993 443 807 1,196 1,871 Adjusted common shareholders' equity $ 18,100 $ 17,682 $ 17,400 $ 17,601 $ 17,836 $ 17,951 $ 18,356 $ 18,562 Denominator: Common shares outstanding and dilutive potential common shares outstanding 370.8 372.7 375.8 380.3 386.1 394.6 407.7 415.4 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 48.81 $ 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 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Return on Common Shareholders' Equity Numerator: Net income applicable to common shareholders (1) $ 1,761 $ 1,410 $ 1,540 $ 1,624 $ 2,055 $ 2,390 $ 2,519 $ 2,807 Denominator: Beginning common shareholders' equity $ 18,279 $ 18,758 $ 19,552 $ 20,433 $ 20,558 $ 20,583 $ 21,126 $ 20,600 Ending common shareholders' equity 18,827 19,188 18,807 18,594 18,279 18,758 19,552 20,433 Average common shareholders' equity (2) $ 18,553 $ 18,973 $ 19,180 $ 19,514 $ 19,419 $ 19,671 $ 20,339 $ 20,517 Return on common shareholders' equity 9.5 % 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) $ 1,838 $ 1,656 $ 1,792 $ 1,819 $ 2,113 $ 2,224 $ 2,212 $ 2,395 Denominator: Beginning common shareholders' equity $ 18,279 $ 18,758 $ 19,552 $ 20,433 $ 20,558 $ 20,583 $ 21,126 $ 20,600 Unrealized net capital gains and losses 620 879 1,419 2,137 1,926 1,827 2,150 2,091 Adjusted beginning common shareholders' equity 17,659 17,879 18,133 18,296 18,632 18,756 18,976 18,509 Ending common shareholders' equity 18,827 19,188 18,807 18,594 18,279 18,758 19,552 20,433 Unrealized net capital gains and losses 1,053 1,817 1,624 1,200 620 879 1,419 2,137 Adjusted ending common shareholders' equity 17,774 17,371 17,183 17,394 17,659 17,879 18,133 18,296 Average adjusted common shareholders' equity (2) $ 17,717 $ 17,625 $ 17,658 $ 17,845 $ 18,146 $ 18,318 $ 18,555 $ 18,403 Operating income return on common shareholders' equity * 10.4 % 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 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Debt Short-term debt $ - $ - $ - $ - $ - $ - $ - $ - Long-term debt 6,347 5,110 5,109 5,108 5,124 5,123 5,133 5,140 Total debt $ 6,347 $ 5,110 $ 5,109 $ 5,108 $ 5,124 $ 5,123 $ 5,133 $ 5,140 Capital resources Debt $ 6,347 $ 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 1,746 Common stock 9 9 9 9 9 9 9 9 Additional capital paid-in 3,303 3,237 3,203 3,237 3,245 3,224 3,205 3,109 Retained income 40,678 39,990 39,623 39,505 39,413 39,068 38,567 38,363 Deferred ESOP expense (6) (13) (13) (13) (13) (23) (23) (23) Treasury stock (24,741) (24,537) (24,310) (23,994) (23,620) (23,058) (22,273) (21,799) Unrealized net capital gains and losses 1,053 1,817 1,624 1,200 620 879 1,419 2,137 Unrealized foreign currency translation adjustments (50) (48) (41) (46) (60) (52) (38) (29) Unrecognized pension and other postretirement benefit cost (1,419) (1,267) (1,288) (1,304) (1,315) (1,289) (1,314) (1,334) Total shareholders' equity 20,573 20,934 20,553 20,340 20,025 20,504 21,298 22,179 Total capital resources $ 26,920 $ 26,044 $ 25,662 $ 25,448 $ 25,149 $ 25,627 $ 26,431 $ 27,319 Ratio of debt to shareholders' equity 30.9 % 24.4 % 24.9 % 25.1 % 25.6 % 25.0 % 24.1 % 23.2 % Ratio of debt to capital resources 23.6 % 19.6 % 19.9 % 20.1 % 20.4 % 20.0 % 19.4 % 18.8 % THE ALLSTATE CORPORATION DEBT TO CAPITAL ($ in millions)

8 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 840 $ 520 $ 271 $ 246 $ 489 $ 650 $ 355 $ 677 $ 1,877 $ 2,171 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other non-cash items 97 97 97 91 96 96 92 87 382 371 Realized capital gains and losses (2) (33) (24) 149 250 (33) (108) (139) 90 (30) (Gain) loss on disposition of operations (1) (1) (1) (2) (1) (2) (1) 1 (5) (3) Interest credited to contractholder funds 168 183 185 190 183 194 185 199 726 761 Changes in: Policy benefits and other insurance reserves (347) 401 118 459 (27) (26) 411 115 631 473 Unearned premiums (178) 478 267 (205) (124) 518 361 (117) 362 638 Deferred policy acquisition costs (6) (87) (65) (7) (20) (87) (97) (35) (165) (239) Premium installment receivables, net 194 (209) (38) 11 156 (132) (92) (66) (42) (134) Reinsurance recoverables, net 156 (300) (80) (40) (45) 11 (120) (24) (264) (178) Income taxes 387 206 (150) (26) (59) 223 (342) 59 417 (119) Other operating assets and liabilities (57) 129 64 (152) 32 (29) 93 (191) (16) (95) Net cash provided by operating activities 1,251 1,384 644 714 930 1,383 737 566 3,993 3,616 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales Fixed income securities 5,929 6,543 6,373 6,216 5,897 6,784 6,559 9,453 25,061 28,693 Equity securities 1,477 1,582 823 1,664 1,066 614 922 1,152 5,546 3,754 Limited partnership interests 247 271 183 180 306 204 295 296 881 1,101 Mortgage loans - - (7) 7 - 6 - - - 6 Other investments 56 62 57 87 367 46 85 47 262 545 Investment collections Fixed income securities 1,103 1,292 1,189 949 1,184 1,005 1,030 1,213 4,533 4,432 Mortgage loans 98 253 71 79 233 (52) 243 114 501 538 Other investments 140 113 125 43 39 77 117 60 421 293 Investment purchases Fixed income securities (5,708) (9,335) (7,546) (5,401) (7,830) (6,446) (7,272) (9,210) (27,990) (30,758) Equity securities (1,837) (1,441) (939) (1,733) (1,722) (1,318) (748) (1,172) (5,950) (4,960) Limited partnership interests (322) (425) (433) (270) (413) (367) (198) (365) (1,450) (1,343) Mortgage loans (186) (196) (220) (44) (163) (15) (307) (202) (646) (687) Other investments (211) (225) (196) (253) (159) (225) (325) (193) (885) (902) Change in short-term investments, net (2,540) 763 688 (1,357) 962 (186) (328) (63) (2,446) 385 Change in other investments, net 9 (21) (20) (19) (36) - (18) 2 (51) (52) Purchases of property and equipment, net (123) (70) (68) (52) (84) (86) (74) (59) (313) (303) Net cash (used in) provided by investing activities (1,868) (834) 80 96 (353) 41 (19) 1,073 (2,526) 742 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt 1,236 - - - - - - - 1,236 - Repayments of long-term debt (1) - - (16) - (11) (9) - (17) (20) Contractholder fund deposits 264 263 261 261 268 257 266 261 1,049 1,052 Contractholder fund withdrawals (550) (524) (521) (492) (534) (641) (580) (572) (2,087) (2,327) Dividends paid on common stock (122) (124) (125) (115) (118) (122) (125) (118) (486) (483) Dividends paid on preferred stock (29) (29) (29) (29) (29) (29) (29) (29) (116) (116) Treasury stock purchases (183) (250) (448) (456) (592) (792) (414) (1,010) (1,337) (2,808) Shares reissued under equity incentive plans, net 41 51 42 30 9 12 45 64 164 130 Excess tax benefits on share-based payment arrangements 7 5 8 12 1 1 17 26 32 45 Other 1 1 3 31 8 1 - (2) 36 7 Net cash provided by (used in) financing activities 664 (607) (809) (774) (987) (1,324) (829) (1,380) (1,526) (4,520) NET INCREASE (DECREASE) IN CASH 47 (57) (85) 36 (410) 100 (111) 259 (59) (162) CASH AT BEGINNING OF PERIOD 389 446 531 495 905 805 916 657 495 657 CASH AT END OF PERIOD $ 436 $ 389 $ 446 $ 531 $ 495 $ 905 $ 805 $ 916 $ 436 $ 495 THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Twelve 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 Sept. 30, 2016 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Dec. 31, 2016 Property-Liability $ 2,186 $ 1,088 $ (1,086) $ - $ - $ - $ 2,188 Allstate Financial: Traditional life and accident and health 810 52 (41) - - - 821 Interest-sensitive life 848 23 (27) (1) - 62 905 Fixed annuity 42 - (2) - - - 40 Subtotal 1,700 75 (70) (1) - 62 1,766 Consolidated $ 3,886 $ 1,163 $ (1,156) $ (1) $ - $ 62 $ 3,954 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 Sept. 30, 2015 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Dec. 31, 2015 Property-Liability $ 2,027 $ 1,054 $ (1,052) $ - $ - $ - $ 2,029 Allstate Financial: Traditional life and accident and health 777 50 (35) - - - 792 Interest-sensitive life 958 30 (28) 1 - 32 993 Fixed annuity 49 - (2) - - - 47 Subtotal 1,784 80 (65) 1 - 32 1,832 Consolidated $ 3,811 $ 1,134 $ (1,117) $ 1 $ - $ 32 $ 3,861 (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 December 31, 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 December 31, 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 Dec. 31, 2016 and losses and losses and losses Property-Liability $ 2,029 $ 4,426 $ (4,267) $ - $ - $ - $ 2,188 $ 2,188 $ - $ 2,188 Allstate Financial: Traditional life and accident and health 792 191 (162) - - - 821 821 - 821 Interest-sensitive life 993 100 (110) (6) 2 (74) 905 1,045 (140) 905 Fixed annuity 47 - (7) - - - 40 40 - 40 Subtotal 1,832 291 (279) (6) 2 (74) 1,766 1,906 (140) 1,766 Consolidated $ 3,861 $ 4,717 $ (4,546) $ (6) $ 2 $ (74) $ 3,954 $ 4,094 $ (140) $ 3,954 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 Dec. 31, 2015 and losses and losses and losses Property-Liability $ 1,820 $ 4,311 $ (4,102) $ - $ - $ - $ 2,029 $ 2,029 $ - $ 2,029 Allstate Financial: Traditional life and accident and health 753 178 (139) - - - 792 792 - 792 Interest-sensitive life 905 107 (111) (6) (1) 99 993 1,059 (66) 993 Fixed annuity 47 - (6) 1 - 5 47 47 - 47 Subtotal 1,705 285 (256) (5) (1) 104 1,832 1,898 (66) 1,832 Consolidated $ 3,525 $ 4,596 $ (4,358) $ (5) $ (1) $ 104 $ 3,861 $ 3,927 $ (66) $ 3,861 (1) (2) Included as a component of amortization of DAC on the Consolidated Statements of Operations. For the twelve months ended December 31, 2015 Reconciliation of Deferred Policy Acquisition Costs as of December 31, 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 twelve months ended December 31, 2016 Acquisition Costs as of December 31, 2016 Change in Deferred Policy Acquisition Costs

11 2016 2015 2014 2013 2012 Consolidated statement of operations data: Insurance premiums and contract charges $ 33,582 $ 32,467 $ 31,086 $ 29,970 $ 28,978 Net investment income 3,042 3,156 3,459 3,943 4,010 Realized capital gains and losses (90) 30 694 594 327 Total revenues $ 36,534 $ 35,653 $ 35,239 $ 34,507 $ 33,315 Net income applicable to common shareholders $ 1,761 $ 2,055 $ 2,746 $ 2,263 $ 2,306 Realized capital gains and losses, after-tax 56 (19) (451) (385) (216) Valuation changes on embedded derivatives that are not hedged, after-tax 2 1 15 16 (82) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax 4 3 3 5 42 DAC and DSI unlocking relating to realized capital gains and losses, after-tax - - - (7) (4) Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (3) (2) (7) 7 33 Amortization of purchased intangible assets, after-tax 21 32 45 55 81 (Gain) loss on disposition of operations, after-tax (3) (2) 16 515 (12) Loss on extinguishment of debt, after-tax - - - 319 - Postretirement benefits curtailment gain, after-tax - - - (118) - Change in accounting for investments in qualified affordable housing projects, after-tax - 45 - - - Operating income * $ 1,838 $ 2,113 $ 2,367 $ 2,670 $ 2,148 Income per common share - Diluted Net income applicable to common shareholders $ 4.67 $ 5.05 $ 6.27 $ 4.81 $ 4.68 Realized capital gains and losses, after-tax 0.15 (0.05) (1.03) (0.82) (0.44) Valuation changes on embedded derivatives that are not hedged, after-tax - - 0.03 0.03 (0.17) 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 0.01 0.09 DAC and DSI unlocking relating to realized capital gains and losses, after-tax - - - (0.01) (0.01) Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (0.01) - (0.02) 0.01 0.07 Amortization of purchased intangible assets, after-tax 0.06 0.08 0.10 0.12 0.16 (Gain) loss on disposition of operations, after-tax (0.01) - 0.04 1.10 (0.02) Loss on extinguishment of debt, after-tax - - - 0.68 - Postretirement benefits curtailment gain, after-tax - - - (0.25) - Change in accounting for investments in qualified affordable housing projects, after-tax - 0.11 - - - Operating income * $ 4.87 $ 5.19 $ 5.40 $ 5.68 $ 4.36 Net income applicable to common shareholders per share - Basic $ 4.72 $ 5.12 $ 6.37 $ 4.87 $ 4.71 Consolidated statement of financial position data: Investments $ 81,799 $ 77,758 $ 81,113 $ 81,155 $ 97,278 Total assets 108,610 104,656 108,479 123,460 126,893 Reserves for claims and claims expense, life-contingent contract benefits and contractholder funds 57,749 57,411 57,832 58,547 75,502 Debt 6,347 5,124 5,140 6,141 6,003 Shareholders' equity 20,573 20,025 22,304 21,480 20,580 Book value per share 50.77 47.34 48.24 45.31 42.39 Operating ratio: Annual statutory premiums written to surplus ratio (U.S. property-liability operations) 1.9x 1.9x 1.8x 1.6x 1.6x Other operating data: Total employees (1) 43,500 41,600 40,200 39,400 38,500 Total Allstate agencies (1)(2) 12,200 12,300 11,900 11,600 11,200 (1) (2) Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and Canada. THE ALLSTATE CORPORATION HISTORICAL CONSOLIDATED OPERATING AND FINANCIAL POSITION DATA ($ in millions except per share data) As of or for the Year Ended December 31, Rounded to the nearest hundred.

12 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Premiums written $ 7,723 $ 8,311 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 31,600 $ 30,871 Decrease (increase) in unearned premiums 189 (472) (264) 166 140 (485) (370) 166 (381) (549) Other (11) 30 27 42 (7) (2) 42 (46) 88 (13) Premiums earned 7,901 7,869 7,814 7,723 7,684 7,650 7,549 7,426 31,307 30,309 Claims and claims expense (5,083) (5,553) (5,901) (5,684) (5,199) (5,255) (5,587) (4,993) (22,221) (21,034) Amortization of deferred policy acquisition costs (1,086) (1,068) (1,057) (1,056) (1,052) (1,029) (1,021) (1,000) (4,267) (4,102) Operating costs and expenses (927) (888) (912) (853) (812) (867) (934) (962) (3,580) (3,575) Restructuring and related charges (9) (5) (10) (5) (10) (8) (17) (4) (29) (39) Underwriting income (loss) 796 355 (66) 125 611 491 (10) 467 1,210 1,559 Net investment income 338 310 316 302 280 307 292 358 1,266 1,237 Income tax expense on operations (383) (218) (70) (141) (299) (256) (92) (305) (812) (952) Realized capital gains and losses, after-tax 10 36 18 (64) (99) (104) 31 18 - (154) (Loss) gain on disposition of operations, after-tax - - - - - (1) 1 - - - Net income applicable to common shareholders $ 761 $ 483 $ 198 $ 222 $ 493 $ 437 $ 222 $ 538 $ 1,664 $ 1,690 Catastrophe losses $ 303 $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,572 $ 1,719 Amortization of purchased intangible assets $ 5 $ 9 $ 9 $ 9 $ 13 $ 12 $ 13 $ 12 $ 32 $ 50 Operating ratios Claims and claims expense ("loss") ratio 64.3 70.6 75.5 73.6 67.6 68.7 74.0 67.2 71.0 69.4 Expense ratio 25.6 24.9 25.3 24.8 24.4 24.9 26.1 26.5 25.1 25.5 Combined ratio 89.9 95.5 100.8 98.4 92.0 93.6 100.1 93.7 96.1 94.9 Loss ratio 64.3 70.6 75.5 73.6 67.6 68.7 74.0 67.2 71.0 69.4 Less: effect of catastrophe losses 3.8 6.1 12.3 10.7 4.7 3.5 10.6 4.0 8.2 5.7 effect of prior year non-catastrophe reserve reestimates (1.6) 1.3 (0.2) 0.4 (0.2) 0.6 0.2 0.6 (0.1) 0.3 Underlying loss ratio * 62.1 63.2 63.4 62.5 63.1 64.6 63.2 62.6 62.9 63.4 Expense ratio 25.6 24.9 25.3 24.8 24.4 24.9 26.1 26.5 25.1 25.5 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 25.6 24.8 25.2 24.7 24.3 24.7 25.9 26.4 25.0 25.3 Reconciliation of combined ratio to underlying combined ratio Combined ratio 89.9 95.5 100.8 98.4 92.0 93.6 100.1 93.7 96.1 94.9 Effect of catastrophe losses (3.8) (6.1) (12.3) (10.7) (4.7) (3.5) (10.6) (4.0) (8.2) (5.7) Effect of prior year non-catastrophe reserve reestimates 1.6 (1.3) 0.2 (0.4) 0.2 (0.6) (0.2) (0.6) 0.1 (0.3) 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) Underlying combined ratio * 87.7 88.0 88.6 87.2 87.4 89.3 89.1 89.0 87.9 88.7 Effect of restructuring and related charges on combined ratio 0.1 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 - - 0.3 0.2 THE ALLSTATE CORPORATION PROPERTY-LIABILITY RESULTS ($ in millions) Twelve months endedThree months ended

13 2016 2015 2014 2013 2012 Premiums written $ 31,600 $ 30,871 $ 29,614 $ 28,164 $ 27,027 Increase in unearned premium (381) (549) (723) (572) (322) Other 88 (13) 38 26 32 Premiums earned 31,307 30,309 28,929 27,618 26,737 Claims and claims expense (22,221) (21,034) (19,428) (17,911) (18,484) Amortization of deferred policy acquisition costs (4,267) (4,102) (3,875) (3,674) (3,483) Operating costs and expenses (3,580) (3,575) (3,838) (3,752) (3,536) Restructuring and related charges (29) (39) (16) (63) (34) Underwriting income 1,210 1,559 1,772 2,218 1,200 Net investment income 1,266 1,237 1,301 1,375 1,326 Income tax expense on operations (812) (952) (1,040) (1,177) (779) Realized capital gains and losses, after-tax - (154) 357 339 221 Gain (loss) on disposition of operations, after-tax - - 37 (1) - Net income applicable to common shareholders $ 1,664 $ 1,690 $ 2,427 $ 2,754 $ 1,968 Catastrophe losses $ 2,572 $ 1,719 $ 1,993 $ 1,251 $ 2,345 Amortization of purchased intangible assets $ 32 $ 50 $ 68 $ 85 $ 124 Operating ratios Loss ratio 71.0 69.4 67.2 64.9 69.1 Expense ratio 25.1 25.5 26.7 27.1 26.4 Combined ratio 96.1 94.9 93.9 92.0 95.5 Loss ratio 71.0 69.4 67.2 64.9 69.1 Less: effect of catastrophe losses 8.2 5.7 6.9 4.5 8.8 effect of prior year non-catastrophe reserve reestimates (0.1) 0.3 (0.4) (0.1) (1.0) Underlying loss ratio * 62.9 63.4 60.7 60.5 61.3 Expense ratio 25.1 25.5 26.7 27.1 26.4 Less: effect of amortization of purchased intangible assets 0.1 0.2 0.2 0.3 0.5 Expense ratio, excluding the effect of amortization of purchased intangible assets 25.0 25.3 26.5 26.8 25.9 Reconciliation of combined ratio to underlying combined ratio Combined ratio 96.1 94.9 93.9 92.0 95.5 Effect of catastrophe losses (8.2) (5.7) (6.9) (4.5) (8.8) Effect of prior year non-catastrophe reserve reestimates 0.1 (0.3) 0.4 0.1 1.0 Effect of amortization of purchased intangible assets (0.1) (0.2) (0.2) (0.3) (0.5) Underlying combined ratio * 87.9 88.7 87.2 87.3 87.2 Effect of restructuring and related charges on combined ratio 0.1 0.1 0.1 0.2 0.1 Effect of Discontinued Lines and Coverages on the combined ratio 0.3 0.2 0.4 0.5 0.2 THE ALLSTATE CORPORATION HISTORICAL PROPERTY-LIABILITY RESULTS ($ in millions) Twelve months ended December 31,

14 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Property-Liability Underwriting Summary Allstate Protection $ 799 $ 455 $ (64) $ 127 $ 613 $ 540 $ (8) $ 469 $ 1,317 $ 1,614 Discontinued Lines and Coverages (3) (100) (2) (2) (2) (49) (2) (2) (107) (55) Underwriting income (loss) $ 796 $ 355 $ (66) $ 125 $ 611 $ 491 $ (10) $ 467 $ 1,210 $ 1,559 Allstate Protection Underwriting Summary Premiums written $ 7,722 $ 8,309 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 31,597 $ 30,871 Premiums earned $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 7,684 $ 7,650 $ 7,549 $ 7,426 $ 31,307 $ 30,309 Claims and claims expense (5,080) (5,454) (5,899) (5,683) (5,197) (5,207) (5,585) (4,992) (22,116) (20,981) Amortization of deferred policy acquisition costs (1,086) (1,068) (1,057) (1,056) (1,052) (1,029) (1,021) (1,000) (4,267) (4,102) Operating costs and expenses (927) (887) (912) (852) (812) (866) (934) (961) (3,578) (3,573) Restructuring and related charges (9) (5) (10) (5) (10) (8) (17) (4) (29) (39) Underwriting income (loss) $ 799 $ 455 $ (64) $ 127 $ 613 $ 540 $ (8) $ 469 $ 1,317 $ 1,614 Catastrophe losses $ 303 $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,572 $ 1,719 Operating ratios Loss ratio 64.3 69.3 75.5 73.6 67.6 68.0 74.0 67.2 70.6 69.2 Expense ratio 25.6 24.9 25.3 24.8 24.4 24.9 26.1 26.5 25.2 25.5 Combined ratio 89.9 94.2 100.8 98.4 92.0 92.9 100.1 93.7 95.8 94.7 Effect of catastrophe losses on combined ratio 3.8 6.1 12.3 10.7 4.7 3.5 10.6 4.0 8.2 5.7 Effect of restructuring and related charges on combined ratio 0.1 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 $ 1 $ 2 $ - $ - $ - $ - $ - $ - $ 3 $ - Premiums earned $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Claims and claims expense (3) (99) (2) (1) (2) (48) (2) (1) (105) (53) Operating costs and expenses - (1) - (1) - (1) - (1) (2) (2) Underwriting loss $ (3) $ (100) $ (2) $ (2) $ (2) $ (49) $ (2) $ (2) $ (107) $ (55) Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio - 1.3 - 0.1 - 0.7 - - 0.3 0.2 Allstate Protection Underwriting Income (Loss) by Brand Allstate brand $ 793 $ 493 $ (10) $ 171 $ 629 $ 571 $ 86 $ 526 $ 1,447 $ 1,812 Esurance brand (21) (41) (37) (25) (28) (26) (41) (69) (124) (164) Encompass brand 29 5 (15) (18) 14 (4) (50) 14 1 (26) Answer Financial (2) (2) (2) (1) (2) (1) (3) (2) (7) (8) Underwriting income (loss) $ 799 $ 455 $ (64) $ 127 $ 613 $ 540 $ (8) $ 469 $ 1,317 $ 1,614 THE ALLSTATE CORPORATION PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS ($ in millions) Twelve months endedThree months ended

15 2016 2015 2014 2013 2012 Property-Liability Underwriting Summary Allstate Protection $ 1,317 $ 1,614 $ 1,887 $ 2,361 $ 1,253 Discontinued Lines and Coverages (107) (55) (115) (143) (53) Underwriting income $ 1,210 $ 1,559 $ 1,772 $ 2,218 $ 1,200 Allstate Protection Underwriting Summary Premiums written $ 31,597 $ 30,871 $ 29,613 $ 28,164 $ 27,026 Premiums earned $ 31,307 $ 30,309 $ 28,928 $ 27,618 $ 26,737 Claims and claims expense (22,116) (20,981) (19,315) (17,769) (18,433) Amortization of deferred policy acquisition costs (4,267) (4,102) (3,875) (3,674) (3,483) Operating costs and expenses (3,578) (3,573) (3,835) (3,751) (3,534) Restructuring and related charges (29) (39) (16) (63) (34) Underwriting income $ 1,317 $ 1,614 $ 1,887 $ 2,361 $ 1,253 Catastrophe losses $ 2,572 $ 1,719 $ 1,993 $ 1,251 $ 2,345 Operating ratios Loss ratio 70.6 69.2 66.8 64.4 68.9 Expense ratio 25.2 25.5 26.7 27.1 26.4 Combined ratio 95.8 94.7 93.5 91.5 95.3 Effect of catastrophe losses on combined ratio 8.2 5.7 6.9 4.5 8.8 Effect of restructuring and related charges on combined ratio 0.1 0.1 0.1 0.2 0.1 Effect of amortization of purchased intangible assets on combined ratio 0.1 0.2 0.2 0.3 0.5 Discontinued Lines and Coverages Underwriting Summary Premiums written $ 3 $ - $ 1 $ - $ 1 Premiums earned $ - $ - $ 1 $ - $ - Claims and claims expense (105) (53) (113) (142) (51) Operating costs and expenses (2) (2) (3) (1) (2) Underwriting loss $ (107) $ (55) $ (115) $ (143) $ (53) Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio 0.3 0.2 0.4 0.5 0.2 THE ALLSTATE CORPORATION HISTORICAL PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS ($ in millions) Twelve months ended December 31,

16 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Allstate brand (1) Auto $ 4,756 $ 4,940 $ 4,767 $ 4,746 $ 4,576 $ 4,746 $ 4,588 $ 4,535 $ 19,209 $ 18,445 Homeowners 1,638 1,869 1,831 1,392 1,634 1,879 1,819 1,379 6,730 6,711 Other personal lines 393 447 428 353 376 429 424 357 1,621 1,586 Commercial lines 115 123 135 126 126 124 138 128 499 516 Other business lines 158 185 183 183 168 205 199 184 709 756 7,060 7,564 7,344 6,800 6,880 7,383 7,168 6,583 28,768 28,014 Esurance brand Auto 382 428 376 439 368 411 363 434 1,625 1,576 Homeowners 15 16 14 11 9 9 7 5 56 30 Other personal lines 2 2 2 2 1 3 1 2 8 7 399 446 392 452 378 423 371 441 1,689 1,613 Encompass brand Auto 138 153 162 138 152 169 173 147 591 641 Homeowners 103 121 126 104 116 134 136 111 454 497 Other personal lines 22 25 27 21 25 28 29 24 95 106 263 299 315 263 293 331 338 282 1,140 1,244 Allstate Protection 7,722 8,309 8,051 7,515 7,551 8,137 7,877 7,306 31,597 30,871 Discontinued Lines and Coverages (2) 1 2 - - - - - - 3 - Property-Liability $ 7,723 $ 8,311 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 31,600 $ 30,871 Allstate Protection Auto $ 5,276 $ 5,521 $ 5,305 $ 5,323 $ 5,096 $ 5,326 $ 5,124 $ 5,116 $ 21,425 $ 20,662 Homeowners 1,756 2,006 1,971 1,507 1,759 2,022 1,962 1,495 7,240 7,238 Other personal lines 417 474 457 376 402 460 454 383 1,724 1,699 Commercial lines 115 123 135 126 126 124 138 128 499 516 Other business lines 158 185 183 183 168 205 199 184 709 756 $ 7,722 $ 8,309 $ 8,051 $ 7,515 $ 7,551 $ 8,137 $ 7,877 $ 7,306 $ 31,597 $ 30,871 (1) Canada premiums included in Allstate brand Auto $ 182 $ 220 $ 234 $ 164 $ 183 $ 215 $ 235 $ 173 $ 800 $ 806 Homeowners 52 64 64 41 50 60 63 41 221 214 Other personal lines 13 16 16 10 12 15 15 11 55 53 $ 247 $ 300 $ 314 $ 215 $ 245 $ 290 $ 313 $ 225 $ 1,076 $ 1,073 (2) Primarily represents retrospective reinsurance premium recognized when billed. THE ALLSTATE CORPORATION PROPERTY-LIABILITY PREMIUMS WRITTEN BY BRAND ($ in millions) Twelve months endedThree months ended

17 Number of Location Number of Location Number of Location locations (7) Total brand (%) (8) specific (%) (9) locations Total brand (%) (8) specific (%) (9) locations Total brand (%) (8) specific (%) (9) Allstate brand Auto (2)(3)(4) 23 1.3 5.6 (10) 25 1.0 7.1 35 3.2 6.2 Homeowners (5)(6) 12 0.5 4.7 (11) 10 0.2 4.6 11 0.8 4.9 Esurance brand Auto 13 2.2 6.2 9 0.4 2.3 15 1.3 5.6 Homeowners 1 0.5 10.0 N/A N/A N/A N/A N/A N/A Encompass brand Auto 8 3.2 9.9 9 1.6 8.8 10 4.1 9.5 Homeowners 6 0.6 3.3 5 1.4 9.2 6 1.7 8.1 Number of Location Number of Location Number of Location locations Total brand (%) (8) specific (%) (9) locations Total brand (%) (8) specific (%) (9) locations Total brand (%) (8) specific (%) (9) Allstate brand Auto (2)(3)(4) 25 1.7 7.3 34 1.9 5.5 23 1.6 5.1 Homeowners (5)(6) 15 (0.4) (12) (2.3) 16 1.5 6.1 6 0.4 6.4 Esurance brand Auto 6 0.3 2.7 18 3.0 6.7 13 1.3 5.1 Homeowners N/A N/A N/A N/A N/A N/A N/A N/A N/A Encompass brand Auto 4 1.6 14.3 9 2.0 5.7 8 1.3 7.6 Homeowners 5 1.4 11.6 5 1.7 7.4 8 1.2 5.9 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 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 2.1% and 5.1% for the twleve months ended December 31, 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. December 31, 2015 September 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 December 31, 2016 are estimated to total $330 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 1.1%, 1.5%, 3.4%, 1.4%, 1.8% and 1.5% for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 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%, 0.6%, 0.5%, 0.7%, 0.5% and 0.5% for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 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 31 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 7.2%, 7.8%, 8.4% and 6.7% for the trailing twelve months ended December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively. Allstate brand auto rate changes were cumulatively $2.27 billion or 12.5% in 2016 and 2015. Allstate brand homeowner rate changes were cumulatively $265 million or 3.9% in 2016 and 2015. Based on historical premiums written in the locations noted above, rate changes approved for auto totaled $1.33 billion, $942 million and $399 million in 2016, 2015 and 2014, respectively. Based on historical premiums written in the locations noted above, rate changes approved for homeowners totaled $75 million, $190 million and $124 million in 2016, 2015 and 2014, respectively. June 30, 2016 March 31, 2016 Three months ended Three months ended Three months ended September 30, 2016December 31, 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

18 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Policies in Force (in thousands) (1) Allstate Brand Auto (2) 19,742 19,852 20,061 20,145 20,326 20,367 20,258 20,036 Homeowners (3) 6,099 6,109 6,135 6,152 6,174 6,163 6,141 6,114 Landlord 716 720 726 732 737 736 737 738 Renter 1,568 1,557 1,554 1,556 1,555 1,550 1,518 1,494 Condominium 666 665 667 667 668 665 662 658 Other 1,264 1,260 1,256 1,253 1,259 1,257 1,253 1,245 Other personal lines 4,214 4,202 4,203 4,208 4,219 4,208 4,170 4,135 Commercial lines 285 296 308 318 324 328 330 326 Other business lines 768 797 824 856 894 920 937 941 Excess and surplus 21 22 23 24 25 26 26 27 Total 31,129 31,278 31,554 31,703 31,962 32,012 31,862 31,579 Esurance Brand Auto 1,391 1,395 1,409 1,428 1,415 1,433 1,458 1,470 Homeowners 58 52 44 37 32 26 20 15 Other personal lines 47 47 47 46 44 44 44 42 Total 1,496 1,494 1,500 1,511 1,491 1,503 1,522 1,527 Encompass Brand Auto 622 649 676 701 723 746 767 778 Homeowners 295 305 318 329 338 347 355 361 Other personal lines 98 101 105 108 111 114 118 120 Total 1,015 1,055 1,099 1,138 1,172 1,207 1,240 1,259 Total Policies in Force 33,640 33,827 34,153 34,352 34,625 34,722 34,624 34,365 Non-Proprietary Premiums ($ in millions) Ivantage (4) $ 1,544 $ 1,531 $ 1,528 $ 1,504 $ 1,490 $ 1,481 $ 1,461 $ 1,446 Answer Financial (5) 140 158 150 151 138 149 145 149 Agency Data Total Allstate agencies (6)(7) 12,200 12,200 12,200 12,100 12,300 12,100 12,000 Licensed sales professionals (7)(8) 23,800 23,600 23,800 24,000 24,400 24,000 23,500 Allstate independent agencies (7)(9) 2,200 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 460 and 880 engaged Allstate independent agencies (“AIAs”) as of December 31, 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 December 31, 2016 were $25.5 million. Represents non-proprietary premiums written for the period. Commissions earned for the three months ended December 31, 2016 were $18.2 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 Allstate Roadside Services wholesale partners 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 41 states, including 9 out of our largest 10 states, as of December 31, 2016 compared to December 31, 2015. Allstate brand homeowners PIF decreased in 33 states, including 7 out of our largest 10 states, as of December 31, 2016 compared to December 31, 2015.

19 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 7,060 $ 7,564 $ 7,344 $ 6,800 $ 6,880 $ 7,383 $ 7,168 $ 6,583 $ 28,768 $ 28,014 Net premiums earned Auto $ 4,826 $ 4,793 $ 4,745 $ 4,667 $ 4,638 $ 4,597 $ 4,524 $ 4,432 $ 19,031 $ 18,191 Homeowners 1,691 1,683 1,684 1,678 1,674 1,663 1,645 1,631 6,736 6,613 Other personal lines 403 399 397 393 395 396 395 391 1,592 1,577 Commercial lines 123 127 127 129 129 128 128 125 506 510 Other business lines 145 150 142 143 135 148 137 141 580 561 Total 7,188 7,152 7,095 7,010 6,971 6,932 6,829 6,720 28,445 27,452 Incurred losses Auto $ 3,416 $ 3,610 $ 3,634 $ 3,519 $ 3,495 $ 3,455 $ 3,431 $ 3,175 $ 14,179 $ 13,556 Homeowners 765 893 1,260 1,190 816 820 1,147 894 4,108 3,677 Other personal lines 234 236 256 261 216 241 259 244 987 960 Commercial lines 109 112 135 119 100 97 105 98 475 400 Other business lines 60 69 64 61 57 71 66 69 254 263 Total 4,584 4,920 5,349 5,150 4,684 4,684 5,008 4,480 20,003 18,856 Expenses Auto $ 1,181 $ 1,134 $ 1,168 $ 1,103 $ 1,077 $ 1,086 $ 1,155 $ 1,113 $ 4,586 $ 4,431 Homeowners 396 384 373 377 372 385 372 389 1,530 1,518 Other personal lines 117 113 106 103 101 109 105 105 439 420 Commercial lines 34 34 35 38 36 36 40 38 141 150 Other business lines 83 74 74 68 72 61 63 69 299 265 Total 1,811 1,739 1,756 1,689 1,658 1,677 1,735 1,714 6,995 6,784 Underwriting income (loss) Auto $ 229 $ 49 $ (57) $ 45 $ 66 $ 56 $ (62) $ 144 $ 266 $ 204 Homeowners 530 406 51 111 486 458 126 348 1,098 1,418 Other personal lines 52 50 35 29 78 46 31 42 166 197 Commercial lines (20) (19) (43) (28) (7) (5) (17) (11) (110) (40) Other business lines 2 7 4 14 6 16 8 3 27 33 Total 793 493 (10) 171 629 571 86 526 1,447 1,812 Loss ratio 63.8 68.8 75.4 73.5 67.2 67.6 73.3 66.7 70.3 68.7 Expense ratio 25.2 24.3 24.7 24.1 23.8 24.2 25.4 25.5 24.6 24.7 Combined ratio 89.0 93.1 100.1 97.6 91.0 91.8 98.7 92.2 94.9 93.4 Loss ratio 63.8 68.8 75.4 73.5 67.2 67.6 73.3 66.7 70.3 68.7 Less: effect of catastrophe losses 4.0 6.2 12.9 11.2 4.9 3.6 10.7 4.1 8.5 5.8 effect of prior year non-catastrophe reserve reestimates (1.5) - (0.3) 0.3 (0.1) (0.1) 0.3 0.7 (0.4) 0.2 Underlying loss ratio * 61.3 62.6 62.8 62.0 62.4 64.1 62.3 61.9 62.2 62.7 Expense ratio 25.2 24.3 24.7 24.1 23.8 24.2 25.4 25.5 24.6 24.7 Less: effect of amortization of purchased intangible assets - - - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 25.2 24.3 24.7 24.1 23.8 24.2 25.4 25.5 24.6 24.7 Reconciliation of combined ratio to underlying combined ratio Combined ratio 89.0 93.1 100.1 97.6 91.0 91.8 98.7 92.2 94.9 93.4 Effect of catastrophe losses (4.0) (6.2) (12.9) (11.2) (4.9) (3.6) (10.7) (4.1) (8.5) (5.8) Effect of prior year non-catastrophe reserve reestimates 1.5 - 0.3 (0.3) 0.1 0.1 (0.3) (0.7) 0.4 (0.2) Underlying combined ratio * 86.5 86.9 87.5 86.1 86.2 88.3 87.7 87.4 86.8 87.4 Effect of prior year reserve reestimates on combined ratio (1.6) - - 0.2 (0.3) (0.2) 0.4 0.7 (0.4) 0.1 Effect of advertising expenses on combined ratio 2.4 2.2 2.2 1.5 1.5 2.0 2.4 2.3 2.1 2.1 THE ALLSTATE CORPORATION ALLSTATE BRAND PROFITABILITY MEASURES ($ in millions) Twelve months endedThree months ended

20 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 New Issued Applications (in thousands) (2) Auto 562 584 582 584 562 790 818 792 2,312 2,962 Homeowners 167 188 193 164 174 218 212 177 712 781 Average Premium - Gross Written ($) (3) Auto 537 532 516 507 502 494 488 484 523 492 Homeowners 1,181 1,181 1,171 1,174 1,163 1,158 1,150 1,148 1,177 1,155 Average Premium - Net Earned ($) (4) Auto 487 479 471 461 456 452 450 444 474 450 Homeowners 1,105 1,099 1,090 1,082 1,078 1,074 1,066 1,060 1,094 1,070 Renewal Ratio (%) (5) Auto 87.4 87.5 88.0 88.0 88.2 88.6 88.9 88.8 87.8 88.6 Homeowners 87.5 87.9 87.8 88.1 88.5 88.7 88.4 88.4 87.8 88.5 Auto Claim Frequency (6) (% change year-over-year) Bodily Injury Gross (2.0) 0.3 2.8 1.1 3.9 6.4 6.8 6.8 0.5 5.9 Bodily Injury Paid (7) (19.2) (19.6) 1.5 5.9 - 3.5 6.0 2.3 (7.9) 2.9 Property Damage Gross (8)(9) 1.2 3.9 5.6 2.1 7.5 8.9 6.9 2.1 3.1 6.3 Property Damage Paid (1.2) 0.1 (0.1) 2.4 3.7 4.7 4.2 2.5 0.3 3.8 Auto Paid Claim Severity (10) (% change year-over-year) Bodily injury (7) 18.8 12.4 (2.3) (5.5) (7.0) (2.9) 0.6 3.9 4.7 (1.6) Property damage 1.9 1.9 5.3 7.5 4.0 5.4 3.7 4.8 4.1 4.4 Homeowners Excluding Catastrophe Losses (% change year-over-year) Gross Claim frequency (6) 2.2 5.2 (12.5) (7.7) 0.9 (1.9) 0.4 (7.9) (3.4) (2.3) Paid Claim frequency (6) (0.5) 0.7 (14.3) (2.0) (2.1) (3.7) (0.9) (7.0) (4.3) (3.4) Paid Claim severity 1.8 (0.5) 4.7 (2.7) 2.6 4.5 3.6 6.6 0.9 4.3 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 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. Currently, 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. 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. 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. 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 in the second half of 2016 related to enhanced documentation of injuries and related medical treatments. Paid claim severity was impacted by increases in medical inflationary trends that were offset by improvements in loss cost management. 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 STATISTICS (1) Twelve months endedThree months ended

21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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% -2.0% % 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% -19.2% (1) Frequency statistics exclude counts associated with catastrophe events. (2) (3) Decreases in bodily injury paid claim frequency and the related increase in severity as depicted on page 20 reflect payment mix and claim closure patterns that were impacted by changes in bodily injury claim processes in the second half of 2016 related to enhanced documentation of injuries and related medical treatments. Paid claim severity was impacted by increases in medical inflationary trends that were offset by improvements in loss cost management. 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 Q4 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

22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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% 1.2% % 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% -1.2% (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 Q4 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

23 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 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% 3.1% % 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% 85.5% % 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% 0.3% % 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% 88.4% (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 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

24 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 399 $ 446 $ 392 $ 452 $ 378 $ 423 $ 371 $ 441 $ 1,689 $ 1,613 Net premiums earned Auto $ 408 $ 405 $ 403 $ 394 $ 391 $ 392 $ 397 $ 382 $ 1,610 $ 1,562 Homeowners 13 11 10 8 7 5 4 3 42 19 Other personal lines 2 2 2 2 2 2 1 2 8 7 Total 423 418 415 404 400 399 402 387 1,660 1,588 Incurred losses Auto $ 310 $ 313 $ 308 $ 289 $ 294 $ 285 $ 300 $ 297 $ 1,220 $ 1,176 Homeowners 8 11 10 4 4 4 3 1 33 12 Other personal lines 1 2 1 1 1 1 1 1 5 4 Total 319 326 319 294 299 290 304 299 1,258 1,192 Expenses Auto $ 114 $ 111 $ 107 $ 123 $ 119 $ 125 $ 132 $ 155 $ 455 $ 531 Homeowners 10 22 25 11 9 10 7 - 68 26 Other personal lines 1 - 1 1 1 - - 2 3 3 Total 125 133 133 135 129 135 139 157 526 560 Underwriting income (loss) Auto $ (16) $ (19) $ (12) $ (18) $ (22) $ (18) $ (35) $ (70) $ (65) (1) $ (145) Homeowners (5) (22) (25) (7) (6) (9) (6) 2 (59) (19) Other personal lines - - - - - 1 - (1) - - Total (21) (41) (37) (25) (28) (26) (41) (69) (124) (164) Loss ratio 75.4 78.0 76.9 72.8 74.8 72.7 75.6 77.2 75.8 75.1 Expense ratio 29.6 31.8 32.0 33.4 32.2 33.8 34.6 40.6 31.7 35.2 Combined ratio 105.0 109.8 108.9 106.2 107.0 106.5 110.2 117.8 107.5 110.3 Loss ratio 75.4 78.0 76.9 72.8 74.8 72.7 75.6 77.2 75.8 75.1 Less: effect of catastrophe losses 1.2 3.3 3.4 0.7 0.8 0.8 2.0 - 2.2 0.9 effect of prior year non-catastrophe reserve reestimates (2.1) (1.0) (1.0) (1.0) (1.3) (1.6) (0.7) (1.0) (1.3) (1.2) Underlying loss ratio * 76.3 75.7 74.5 73.1 75.3 73.5 74.3 78.2 74.9 75.4 Expense ratio 29.6 31.8 32.0 33.4 32.2 33.8 34.6 40.6 31.7 35.2 Less: effect of amortization of purchased intangible assets 0.9 1.5 1.7 1.5 2.2 2.0 2.2 2.3 1.4 2.2 Expense ratio, excluding the effect of amortization of purchased intangible assets 28.7 30.3 30.3 31.9 30.0 31.8 32.4 38.3 30.3 33.0 Reconciliation of combined ratio to underlying combined ratio Combined ratio 105.0 109.8 108.9 106.2 107.0 106.5 110.2 117.8 107.5 (1)(2) 110.3 (1)(2) Effect of catastrophe losses (1.2) (3.3) (3.4) (0.7) (0.8) (0.8) (2.0) - (2.2) (0.9) Effect of prior year non-catastrophe reserve reestimates 2.1 1.0 1.0 1.0 1.3 1.6 0.7 1.0 1.3 1.2 Effect of amortization of purchased intangible assets (0.9) (1.5) (1.7) (1.5) (2.2) (2.0) (2.2) (2.3) (1.4) (2.2) Underlying combined ratio * 105.0 106.0 104.8 105.0 105.3 105.3 106.7 116.5 105.2 (2) 108.4 (2) Effect of prior year reserve reestimates on combined ratio (2.1) (1.0) (1.0) (1.0) (1.3) (1.3) (0.7) (1.0) (1.3) (1.1) Effect of advertising expenses on combined ratio 9.2 11.7 12.2 11.6 9.8 11.0 12.4 17.3 11.2 (2) 12.6 (2) Policies in Force (in thousands) Auto 1,391 1,395 1,409 1,428 1,415 1,433 1,458 1,470 1,391 1,415 Homeowners 58 52 44 37 32 26 20 15 58 32 Other personal lines 47 47 47 46 44 44 44 42 47 44 1,496 1,494 1,500 1,511 1,491 1,503 1,522 1,527 1,496 1,491 New Issued Applications (in thousands) Auto 137 151 141 168 139 145 148 195 597 627 Homeowners 9 10 11 7 7 8 7 6 37 28 Other personal lines 8 9 8 10 7 9 10 12 35 38 154 170 160 185 153 162 165 213 669 693 Average Premium - Gross Written ($) Auto 555 546 538 547 526 513 506 520 547 516 Homeowners 861 872 855 891 821 838 814 849 875 833 Renewal Ratio (%) Auto 79.3 78.9 80.0 79.6 78.8 78.7 80.4 79.9 79.4 79.5 Homeowners 76.6 76.1 75.9 73.0 N/A N/A N/A N/A 76.6 72.7 (1) (2) Auto underwriting income includes an underwriting loss related to Esurance expansion into Canada of $8 million or 0.5 points on the combined ratio in 2016 compared to an underwriting loss of $7 million or 0.4 points on the combined ratio in 2015. Advertising expenses for US Auto and Homeowners were $146 million and $37 million in 2016 compared to $190 million and $10 million in 2015, respectively. The effect of Esurance brand US Auto and Homeowners advertising expenses on the Esurance combined ratio and underlying combined ratio was 8.8 points and 2.2 points in 2016 compared to 12.0 points and 0.6 points in 2015, respectively. THE ALLSTATE CORPORATION ESURANCE PROFITABILITY MEASURES AND STATISTICS ($ in millions) Twelve months endedThree months ended

25 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 263 $ 299 $ 315 $ 263 $ 293 $ 331 $ 338 $ 282 $ 1,140 $ 1,244 Net premiums earned Auto $ 151 $ 155 $ 158 $ 159 $ 162 $ 165 $ 165 $ 165 $ 623 $ 657 Homeowners 115 119 121 124 124 127 126 127 479 504 Other personal lines 24 25 25 26 27 27 27 27 100 108 Total 290 299 304 309 313 319 318 319 1,202 1,269 Incurred losses Auto $ 104 $ 117 $ 130 $ 123 $ 126 $ 135 $ 129 $ 116 $ 474 $ 506 Homeowners 60 74 85 85 61 75 117 74 304 327 Other personal lines 13 17 16 31 27 23 27 23 77 100 Total 177 208 231 239 214 233 273 213 855 933 Expenses Auto $ 44 $ 44 $ 45 $ 45 $ 44 $ 46 $ 50 $ 47 $ 178 $ 187 Homeowners 33 34 36 36 34 36 38 37 139 145 Other personal lines 7 8 7 7 7 8 7 8 29 30 Total 84 86 88 88 85 90 95 92 346 362 Underwriting income (loss) Auto $ 3 $ (6) $ (17) $ (9) $ (8) $ (16) $ (14) $ 2 $ (29) $ (36) Homeowners 22 11 - 3 29 16 (29) 16 36 32 Other personal lines 4 - 2 (12) (7) (4) (7) (4) (6) (22) Total 29 5 (15) (18) 14 (4) (50) 14 1 (26) Loss ratio 61.0 69.6 76.0 77.3 68.4 73.1 85.8 66.8 71.1 73.5 Expense ratio 29.0 28.7 28.9 28.5 27.1 28.2 29.9 28.8 28.8 28.5 Combined ratio 90.0 98.3 104.9 105.8 95.5 101.3 115.7 95.6 99.9 102.0 Loss ratio 61.0 69.6 76.0 77.3 68.4 73.1 85.8 66.8 71.1 73.5 Less: effect of catastrophe losses 3.1 9.0 11.2 13.3 4.8 5.3 18.6 6.3 9.2 8.7 effect of prior year non-catastrophe reserve reestimates (3.8) - 0.9 4.2 (1.6) 5.1 0.6 (1.3) 0.4 0.7 Underlying loss ratio * 61.7 60.6 63.9 59.8 65.2 62.7 66.6 61.8 61.5 64.1 Expense ratio 29.0 28.7 28.9 28.5 27.1 28.2 29.9 28.8 28.8 28.5 Less: effect of amortization of purchased intangible assets - - - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 29.0 28.7 28.9 28.5 27.1 28.2 29.9 28.8 28.8 28.5 Reconciliation of combined ratio to underlying combined ratio Combined ratio 90.0 98.3 104.9 105.8 95.5 101.3 115.7 95.6 99.9 102.0 Effect of catastrophe losses (3.1) (9.0) (11.2) (13.3) (4.8) (5.3) (18.6) (6.3) (9.2) (8.7) Effect of prior year non-catastrophe reserve reestimates 3.8 - (0.9) (4.2) 1.6 (5.1) (0.6) 1.3 (0.4) (0.7) Underlying combined ratio * 90.7 89.3 92.8 88.3 92.3 90.9 96.5 90.6 90.3 92.6 Effect of prior year reserve reestimates on combined ratio (3.8) 0.3 0.3 4.5 (1.9) 5.4 0.9 (2.2) 0.4 0.6 Effect of advertising expenses on combined ratio 0.3 - 0.3 - - 0.3 0.6 0.6 0.2 0.4 Policies in Force (in thousands) Auto 622 649 676 701 723 746 767 778 622 723 Homeowners 295 305 318 329 338 347 355 361 295 338 Other personal lines 98 101 105 108 111 114 118 120 98 111 1,015 1,055 1,099 1,138 1,172 1,207 1,240 1,259 1,015 1,172 New Issued Applications (in thousands) Auto 11 13 15 15 16 20 23 23 54 82 Homeowners 7 9 9 9 10 12 14 12 34 48 Average Premium - Gross Written ($) Auto 1,043 1,022 988 981 981 963 925 913 1,008 945 Homeowners 1,650 1,659 1,629 1,618 1,587 1,583 1,532 1,519 1,639 1,555 Renewal Ratio (%) Auto 73.1 73.1 75.5 76.1 76.1 76.7 78.0 78.5 74.4 77.3 Homeowners 78.3 77.9 79.9 81.5 81.3 82.5 83.2 83.2 79.4 82.5 THE ALLSTATE CORPORATION ENCOMPASS BRAND PROFITABILITY MEASURES AND STATISTICS ($ in millions) Twelve months endedThree months ended

26 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, ($ in millions) 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Allstate brand $ 4,756 $ 4,940 $ 4,767 $ 4,746 $ 4,576 $ 4,746 $ 4,588 $ 4,535 $ 19,209 $ 18,445 Esurance brand 382 428 376 439 368 411 363 434 1,625 1,576 Encompass brand 138 153 162 138 152 169 173 147 591 641 5,276 5,521 5,305 5,323 5,096 5,326 5,124 5,116 21,425 20,662 Net premiums earned Allstate brand $ 4,826 $ 4,793 $ 4,745 $ 4,667 $ 4,638 $ 4,597 $ 4,524 $ 4,432 $ 19,031 $ 18,191 Esurance brand 408 405 403 394 391 392 397 382 1,610 1,562 Encompass brand 151 155 158 159 162 165 165 165 623 657 5,385 5,353 5,306 5,220 5,191 5,154 5,086 4,979 21,264 20,410 Incurred losses Allstate brand $ 3,416 $ 3,610 $ 3,634 $ 3,519 $ 3,495 $ 3,455 $ 3,431 $ 3,175 $ 14,179 $ 13,556 Esurance brand 310 313 308 289 294 285 300 297 1,220 1,176 Encompass brand 104 117 130 123 126 135 129 116 474 506 3,830 4,040 4,072 3,931 3,915 3,875 3,860 3,588 15,873 15,238 Expenses Allstate brand $ 1,181 $ 1,134 $ 1,168 $ 1,103 $ 1,077 $ 1,086 $ 1,155 $ 1,113 $ 4,586 $ 4,431 Esurance brand 114 111 107 123 119 125 132 155 455 531 Encompass brand 44 44 45 45 44 46 50 47 178 187 1,339 1,289 1,320 1,271 1,240 1,257 1,337 1,315 5,219 5,149 Underwriting income (loss) Allstate brand $ 229 $ 49 $ (57) $ 45 $ 66 $ 56 $ (62) $ 144 $ 266 $ 204 Esurance brand (16) (19) (12) (18) (22) (18) (35) (70) (65) (145) Encompass brand 3 (6) (17) (9) (8) (16) (14) 2 (29) (36) 216 24 (86) 18 36 22 (111) 76 172 23 Loss ratio Allstate brand 70.8 75.3 76.6 75.4 75.4 75.2 75.9 71.7 74.5 74.5 Esurance brand 76.0 77.3 76.4 73.4 75.2 72.7 75.6 77.7 75.8 75.3 Encompass brand 68.9 75.5 82.3 77.4 77.8 81.8 78.2 70.3 76.1 77.0 Allstate Protection 71.1 75.5 76.7 75.3 75.4 75.2 75.9 72.1 74.7 74.7 Expense ratio Allstate brand 24.5 23.7 24.6 23.6 23.2 23.6 25.5 25.1 24.1 24.4 Esurance brand 27.9 27.4 26.6 31.2 30.4 31.9 33.2 40.6 28.2 34.0 Encompass brand 29.1 28.4 28.5 28.3 27.1 27.9 30.3 28.5 28.6 28.5 Allstate Protection 24.9 24.1 24.9 24.4 23.9 24.4 26.3 26.4 24.5 25.2 Combined ratio Allstate brand 95.3 (1) 99.0 101.2 99.0 98.6 98.8 101.4 96.8 98.6 98.9 Esurance brand 103.9 104.7 103.0 104.6 105.6 104.6 108.8 118.3 104.0 (2) 109.3 (2) Encompass brand 98.0 103.9 110.8 105.7 104.9 109.7 108.5 98.8 104.7 105.5 Allstate Protection 96.0 99.6 101.6 99.7 99.3 99.6 102.2 98.5 99.2 99.9 Effect of catastrophe losses on combined ratio Allstate brand 1.2 3.1 4.1 2.9 1.1 0.5 3.2 0.3 2.8 1.3 Esurance brand 1.0 2.2 2.2 0.5 0.5 0.5 1.8 - 1.5 0.7 Encompass brand - 3.3 1.9 1.3 0.6 0.6 3.0 - 1.6 1.1 Allstate Protection 1.2 3.1 3.9 2.7 1.0 0.5 3.1 0.3 2.7 1.2 Effect of prior year reserve reestimates on combined ratio Allstate brand (2.0) (0.1) (0.8) 0.1 (0.3) 0.1 0.4 0.8 (0.7) 0.2 Esurance brand (2.2) (1.0) (1.0) (1.0) (1.3) (1.3) (0.8) (1.0) (1.3) (1.1) Encompass brand (3.3) (1.3) 3.2 1.3 (0.6) 7.9 (1.2) (4.8) - 0.3 Allstate Protection (2.1) (0.2) (0.7) 0.1 (0.4) 0.3 0.2 0.5 (0.7) 0.1 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) (0.1) Esurance brand - - - - - 0.2 - - - - Encompass brand (0.6) - (0.6) - - - - (0.6) (0.4) (0.1) 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 0.9 1.5 1.8 1.5 2.3 2.0 2.3 2.3 1.4 2.2 Allstate Protection - 0.1 0.1 0.1 0.2 0.2 0.1 0.2 0.1 0.2 (1) (2) Esurance brand auto combined ratio includes 9.1 points for the effect of advertising expenses and 0.5 points for Canada underwriting loss in 2016 compared to 12.2 points for the effect of advertising expenses and 0.4 points for Canada underwriting loss in 2015. THE ALLSTATE CORPORATION AUTO PROFITABILITY MEASURES Twelve months endedThree months ended Favorable reserve reestimates of losses for prior quarters in the current year reduced the Allstate brand auto combined ratio by 0.7 points in fourth quarter 2016.

27 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, ($ in millions) 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Allstate brand $ 1,638 $ 1,869 $ 1,831 $ 1,392 $ 1,634 $ 1,879 $ 1,819 $ 1,379 $ 6,730 $ 6,711 Esurance brand 15 16 14 11 9 9 7 5 56 30 Encompass brand 103 121 126 104 116 134 136 111 454 497 1,756 2,006 1,971 1,507 1,759 2,022 1,962 1,495 7,240 7,238 Net premiums earned Allstate brand $ 1,691 $ 1,683 $ 1,684 $ 1,678 $ 1,674 $ 1,663 $ 1,645 $ 1,631 $ 6,736 $ 6,613 Esurance brand 13 11 10 8 7 5 4 3 42 19 Encompass brand 115 119 121 124 124 127 126 127 479 504 1,819 1,813 1,815 1,810 1,805 1,795 1,775 1,761 7,257 7,136 Incurred losses Allstate brand $ 765 $ 893 $ 1,260 $ 1,190 $ 816 $ 820 $ 1,147 $ 894 $ 4,108 $ 3,677 Esurance brand 8 11 10 4 4 4 3 1 33 12 Encompass brand 60 74 85 85 61 75 117 74 304 327 833 978 1,355 1,279 881 899 1,267 969 4,445 4,016 Expenses Allstate brand $ 396 $ 384 $ 373 $ 377 $ 372 $ 385 $ 372 $ 389 $ 1,530 $ 1,518 Esurance brand 10 22 25 11 9 10 7 - 68 26 Encompass brand 33 34 36 36 34 36 38 37 139 145 439 440 434 424 415 431 417 426 1,737 1,689 Underwriting income (loss) Allstate brand $ 530 $ 406 $ 51 $ 111 $ 486 $ 458 $ 126 $ 348 $ 1,098 $ 1,418 Esurance brand (5) (22) (25) (7) (6) (9) (6) 2 (59) (19) Encompass brand 22 11 - 3 29 16 (29) 16 36 32 547 395 26 107 509 465 91 366 1,075 1,431 Loss ratio Allstate brand 45.3 53.1 74.8 70.9 48.8 49.3 69.7 54.8 61.0 55.6 Esurance brand 61.6 100.0 100.0 50.0 57.1 80.0 75.0 33.3 78.6 63.2 Encompass brand 52.2 62.2 70.2 68.6 49.2 59.1 92.8 58.3 63.5 64.9 Allstate Protection 45.8 53.9 74.7 70.7 48.8 50.1 71.4 55.0 61.3 56.3 Expense ratio Allstate brand 23.4 22.8 22.2 22.5 22.2 23.2 22.6 23.9 22.7 23.0 Esurance brand 76.9 200.0 250.0 137.5 128.6 200.0 175.0 - 161.9 136.8 Encompass brand 28.7 28.6 29.8 29.0 27.4 28.3 30.2 29.1 29.0 28.8 Allstate Protection 24.1 24.3 23.9 23.4 23.0 24.0 23.5 24.2 23.9 23.6 Combined ratio Allstate brand 68.7 75.9 97.0 93.4 71.0 72.5 92.3 78.7 83.7 78.6 Esurance brand 138.5 300.0 350.0 187.5 185.7 280.0 250.0 33.3 240.5 (1) 200.0 (1) Encompass brand 80.9 90.8 100.0 97.6 76.6 87.4 123.0 87.4 92.5 93.7 Allstate Protection 69.9 78.2 98.6 94.1 71.8 74.1 94.9 79.2 85.2 79.9 Effect of catastrophe losses on combined ratio Allstate brand 10.8 15.4 38.3 34.2 15.0 12.4 32.1 13.9 24.6 18.3 Esurance brand 7.7 45.5 50.0 12.5 14.3 20.0 25.0 - 28.6 15.8 Encompass brand 7.8 17.6 24.0 30.7 9.7 11.8 41.3 14.2 20.3 19.3 Allstate Protection 10.6 15.7 37.4 33.9 14.6 12.4 32.7 13.9 24.4 18.4 Effect of prior year reserve reestimates on combined ratio Allstate brand (1.7) (0.3) 1.1 (0.5) (0.5) (0.9) - 0.2 (0.3) (0.3) Esurance brand - - - - - - - - - - Encompass brand (2.6) 1.7 - 0.8 (4.9) - 2.3 (1.6) - (1.0) Allstate Protection (1.8) (0.2) 1.0 (0.4) (0.8) (0.8) 0.2 0.1 (0.3) (0.4) Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand (0.5) 0.3 1.0 (0.3) (0.5) (0.1) 0.5 (0.1) 0.1 (0.1) Esurance brand - - - - - - - - - - Encompass brand - 0.8 (0.8) 1.6 (0.8) 1.6 - (1.6) 0.5 (0.2) Allstate Protection (0.5) 0.3 0.8 (0.2) (0.5) 0.1 0.4 (0.1) 0.2 - (1) Esurance brand homeowners combined ratio includes 88.1 points for the effect of advertising expenses in 2016 compared to 52.6 points in 2015. THE ALLSTATE CORPORATION HOMEOWNERS PROFITABILITY MEASURES Twelve months endedThree months ended

28 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, ($ in millions) 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Allstate brand $ 393 $ 447 $ 428 $ 353 $ 376 $ 429 $ 424 $ 357 $ 1,621 $ 1,586 Esurance brand 2 2 2 2 1 3 1 2 8 7 Encompass brand 22 25 27 21 25 28 29 24 95 106 417 474 457 376 402 460 454 383 1,724 1,699 Net premiums earned Allstate brand $ 403 $ 399 $ 397 $ 393 $ 395 $ 396 $ 395 $ 391 $ 1,592 $ 1,577 Esurance brand 2 2 2 2 2 2 1 2 8 7 Encompass brand 24 25 25 26 27 27 27 27 100 108 429 426 424 421 424 425 423 420 1,700 1,692 Incurred losses Allstate brand $ 234 $ 236 $ 256 $ 261 $ 216 $ 241 $ 259 $ 244 $ 987 $ 960 Esurance brand 1 2 1 1 1 1 1 1 5 4 Encompass brand 13 17 16 31 27 23 27 23 77 100 248 255 273 293 244 265 287 268 1,069 1,064 Expenses Allstate brand $ 117 $ 113 $ 106 $ 103 $ 101 $ 109 $ 105 $ 105 $ 439 $ 420 Esurance brand 1 - 1 1 1 - - 2 3 3 Encompass brand 7 8 7 7 7 8 7 8 29 30 125 121 114 111 109 117 112 115 471 453 Underwriting income (loss) Allstate brand $ 52 $ 50 $ 35 $ 29 $ 78 $ 46 $ 31 $ 42 $ 166 $ 197 Esurance brand - - - - - 1 - (1) - - Encompass brand 4 - 2 (12) (7) (4) (7) (4) (6) (22) 56 50 37 17 71 43 24 37 160 175 Loss ratio Allstate brand 58.1 59.2 64.5 66.4 54.7 60.9 65.6 62.4 62.0 60.9 Esurance brand 50.0 100.0 50.0 50.0 50.0 50.0 100.0 50.0 62.5 57.1 Encompass brand 54.1 68.0 64.0 119.3 100.0 85.2 100.0 85.2 77.0 92.6 Allstate Protection 57.8 59.9 64.4 69.6 57.6 62.4 67.8 63.8 62.9 62.9 Expense ratio Allstate brand 29.0 28.3 26.7 26.2 25.6 27.5 26.6 26.9 27.6 26.6 Esurance brand 50.0 - 50.0 50.0 50.0 - - 100.0 37.5 42.9 Encompass brand 29.2 32.0 28.0 26.9 25.9 29.6 25.9 29.6 29.0 27.8 Allstate Protection 29.1 28.4 26.9 26.4 25.7 27.5 26.5 27.4 27.7 26.8 Combined ratio Allstate brand 87.1 87.5 91.2 92.6 80.3 88.4 92.2 89.3 89.6 87.5 Esurance brand 100.0 100.0 100.0 100.0 100.0 50.0 100.0 150.0 100.0 100.0 Encompass brand 83.3 100.0 92.0 146.2 125.9 114.8 125.9 114.8 106.0 120.4 Allstate Protection 86.9 88.3 91.3 96.0 83.3 89.9 94.3 91.2 90.6 89.7 Effect of catastrophe losses on combined ratio Allstate brand 9.7 6.0 15.6 16.0 8.4 4.5 11.9 7.4 11.8 8.1 Esurance brand - - - - - - - - - - Encompass brand - 4.0 8.0 3.8 7.4 3.7 7.4 7.4 4.0 6.5 Allstate Protection 9.1 5.9 15.1 15.2 8.3 4.5 11.6 7.4 11.3 7.9 Effect of prior year reserve reestimates on combined ratio Allstate brand 0.5 (0.8) (1.7) (1.5) (0.3) 1.8 1.1 (0.5) (0.9) 0.5 Esurance brand - - - - - - - - - - Encompass brand (12.5) 4.0 (16.0) 42.3 3.7 14.8 7.4 11.1 5.0 9.3 Allstate Protection (0.3) (0.5) (2.6) 1.2 - 2.6 1.4 0.2 (0.5) 1.1 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio Allstate brand (0.2) (0.3) - - (0.3) - - (0.3) (0.2) (0.1) Esurance brand - - - - - - - - - - Encompass brand 4.2 - - (3.9) - (3.7) 3.7 - - - 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. Twelve months ended THE ALLSTATE CORPORATION OTHER PERSONAL LINES PROFITABILITY MEASURES (1) Three months ended

29 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, ($ in millions) 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 115 $ 123 $ 135 $ 126 $ 126 $ 124 $ 138 $ 128 $ 499 $ 516 Net premiums earned $ 123 $ 127 $ 127 $ 129 $ 129 $ 128 $ 128 $ 125 $ 506 $ 510 Incurred losses $ 109 $ 112 $ 135 $ 119 $ 100 $ 97 $ 105 $ 98 $ 475 $ 400 Expenses $ 34 $ 34 $ 35 $ 38 $ 36 $ 36 $ 40 $ 38 $ 141 $ 150 Underwriting loss $ (20) $ (19) $ (43) $ (28) $ (7) $ (5) $ (17) $ (11) $ (110) $ (40) Loss ratio 88.6 88.2 106.3 92.2 77.5 75.8 82.0 78.4 93.9 78.4 Expense ratio 27.7 26.8 27.6 29.5 27.9 28.1 31.3 30.4 27.8 29.4 Combined ratio 116.3 115.0 133.9 121.7 105.4 103.9 113.3 108.8 121.7 107.8 Effect of catastrophe losses on combined ratio 5.7 5.5 9.5 7.0 4.6 2.3 9.4 4.0 6.9 5.1 Effect of prior year reserve reestimates on combined ratio 4.9 10.3 18.1 15.5 - (9.3) 3.1 8.0 12.2 0.4 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio 0.8 - 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) Twelve months endedThree months ended

30 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, ($ in millions) 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written $ 158 $ 185 $ 183 $ 183 $ 168 $ 205 $ 199 $ 184 $ 709 $ 756 Net premiums earned $ 145 $ 150 $ 142 $ 143 $ 135 $ 148 $ 137 $ 141 $ 580 $ 561 Incurred losses $ 60 $ 69 $ 64 $ 61 $ 57 $ 71 $ 66 $ 69 $ 254 $ 263 Expenses $ 83 $ 74 $ 74 $ 68 $ 72 $ 61 $ 63 $ 69 $ 299 $ 265 Underwriting income $ 2 $ 7 $ 4 $ 14 $ 6 $ 16 $ 8 $ 3 $ 27 $ 33 Loss ratio 41.4 46.0 45.1 42.7 42.2 48.0 48.2 49.0 43.8 46.9 Expense ratio 57.2 49.3 52.1 47.5 53.4 41.2 46.0 48.9 51.5 47.2 Combined ratio 98.6 95.3 97.2 90.2 95.6 89.2 94.2 97.9 95.3 94.1 Effect of catastrophe losses on combined ratio 0.7 - - - - - - - 0.2 - Effect of prior year reserve reestimates on combined ratio 0.7 2.0 - - - 0.7 0.7 - 0.7 0.4 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio - - - - - - - - - - Effect of amortization of purchased intangible assets 0.6 0.6 0.7 0.7 0.8 0.7 0.8 0.7 0.6 0.7 (1) Other business lines include Allstate Roadside Services and Allstate Dealer Services. THE ALLSTATE CORPORATION OTHER BUSINESS LINES PROFITABILITY MEASURES (1) Twelve months endedThree months ended

31 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Auto Allstate brand combined ratio 95.3 99.0 101.2 99.0 98.6 98.8 101.4 96.8 98.6 98.9 Effect of catastrophe losses (1.2) (3.1) (4.1) (2.9) (1.1) (0.5) (3.2) (0.3) (2.8) (1.3) Effect of prior year non-catastrophe reserve reestimates 2.0 - 0.7 (0.2) 0.1 (0.2) (0.4) (0.9) 0.6 (0.3) Allstate brand underlying combined ratio * 96.1 95.9 97.8 95.9 97.6 98.1 97.8 95.6 96.4 97.3 Esurance brand combined ratio 103.9 104.7 103.0 104.6 105.6 104.6 108.8 118.3 104.0 109.3 Effect of catastrophe losses (1.0) (2.2) (2.2) (0.5) (0.5) (0.5) (1.8) - (1.5) (0.7) Effect of prior year non-catastrophe reserve reestimates 2.2 1.0 1.0 1.0 1.3 1.5 0.8 1.0 1.3 1.1 Effect of amortization of purchased intangible assets (0.9) (1.5) (1.8) (1.5) (2.3) (2.0) (2.3) (2.3) (1.4) (2.2) Esurance brand underlying combined ratio * 104.2 102.0 100.0 103.6 104.1 103.6 105.5 117.0 102.4 107.5 Encompass brand combined ratio 98.0 103.9 110.8 105.7 104.9 109.7 108.5 98.8 104.7 105.5 Effect of catastrophe losses - (3.3) (1.9) (1.3) (0.6) (0.6) (3.0) - (1.6) (1.1) Effect of prior year non-catastrophe reserve reestimates 2.7 1.3 (3.8) (1.3) 0.6 (7.9) 1.2 4.2 (0.4) (0.4) Encompass brand underlying combined ratio * 100.7 101.9 105.1 103.1 104.9 101.2 106.7 103.0 102.7 104.0 Homeowners Allstate brand combined ratio 68.7 75.9 97.0 93.4 71.0 72.5 92.3 78.7 83.7 78.6 Effect of catastrophe losses (10.8) (15.4) (38.3) (34.2) (15.0) (12.4) (32.1) (13.9) (24.6) (18.3) Effect of prior year non-catastrophe reserve reestimates 1.2 0.6 (0.1) 0.2 - 0.8 0.5 (0.3) 0.4 0.2 Allstate brand underlying combined ratio * 59.1 61.1 58.6 59.4 56.0 60.9 60.7 64.5 59.5 60.5 Encompass brand combined ratio 80.9 90.8 100.0 97.6 76.6 87.4 123.0 87.4 92.5 93.7 Effect of catastrophe losses (7.8) (17.6) (24.0) (30.7) (9.7) (11.8) (41.3) (14.2) (20.3) (19.3) Effect of prior year non-catastrophe reserve reestimates 2.6 (0.9) (0.8) 0.8 4.1 1.6 (2.3) - 0.5 0.8 Encompass brand underlying combined ratio * 75.7 72.3 75.2 67.7 71.0 77.2 79.4 73.2 72.7 75.2 Other Personal Lines Allstate brand combined ratio 87.1 87.5 91.2 92.6 80.3 88.4 92.2 89.3 89.6 87.5 Effect of catastrophe losses (9.7) (6.0) (15.6) (16.0) (8.4) (4.5) (11.9) (7.4) (11.8) (8.1) Effect of prior year non-catastrophe reserve reestimates (0.7) 0.5 1.7 1.5 - (1.8) (1.1) 0.2 0.7 (0.6) Allstate brand underlying combined ratio * 76.7 82.0 77.3 78.1 71.9 82.1 79.2 82.1 78.5 78.8 Encompass brand combined ratio 83.3 100.0 92.0 146.2 125.9 114.8 125.9 114.8 106.0 120.4 Effect of catastrophe losses - (4.0) (8.0) (3.8) (7.4) (3.7) (7.4) (7.4) (4.0) (6.5) Effect of prior year non-catastrophe reserve reestimates 16.7 (4.0) 16.0 (46.2) (3.7) (18.5) (3.7) (11.1) (5.0) (9.3) Encompass brand underlying combined ratio * 100.0 92.0 100.0 96.2 114.8 92.6 114.8 96.3 97.0 104.6 THE ALLSTATE CORPORATION AUTO, HOMEOWNERS AND OTHER PERSONAL LINES UNDERLYING COMBINED RATIOS Twelve months endedThree months ended

32 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Auto Annualized average premium (1) $ 978 $ 966 $ 946 $ 927 $ 913 $ 903 $ 893 $ 885 Underlying combined ratio * 96.1 95.9 97.8 95.9 97.6 98.1 97.8 95.6 Average underlying loss (incurred pure premium) and expense * $ 940 $ 926 $ 925 $ 889 $ 891 $ 886 $ 874 $ 846 Homeowners Annualized average premium (1) $ 1,109 $ 1,102 $ 1,098 $ 1,091 $ 1,085 $ 1,079 $ 1,071 $ 1,067 Underlying combined ratio * 59.1 61.1 58.6 59.4 56.0 60.9 60.7 64.5 Average underlying loss (incurred pure premium) and expense * $ 655 $ 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

33 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 $ 103 $ 79 76.7% $ 19 18.4% Other hurricane exposure locations 3,899 2,466 63.2% 1,165 29.9% Total hurricane exposure locations (2) 4,002 2,545 63.6% 1,184 29.6% 17 6.2% Other catastrophe exposure locations (4) 3,255 1,900 58.4% 585 18.0% 29 -1.3% (5) Total $ 7,257 $ 4,445 61.3% $ 1,769 24.4% 86 46 2.8% (1) Basis of Presentation (2) (3) (4) Includes Canada. (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 homeowners was 5.4% for the twelve months ended December 31, 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. Twelve months ended December 31, 2016

34 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Allstate brand Auto $ 59 $ 150 $ 195 $ 137 $ 50 $ 22 $ 143 $ 13 $ 541 $ 228 Homeowners 183 259 644 574 251 207 528 227 1,660 1,213 Other personal lines 39 24 62 63 33 18 47 29 188 127 Commercial lines 7 7 12 9 6 3 12 5 35 26 Other business lines 1 - - - - - - - 1 - Total 289 440 913 783 340 250 730 274 2,425 1,594 Esurance brand Auto 4 9 9 2 2 2 7 - 24 11 Homeowners 1 5 5 1 1 1 1 - 12 3 Other personal lines - - - - - - - - - - Total 5 14 14 3 3 3 8 - 36 14 Encompass brand Auto - 5 3 2 1 1 5 - 10 7 Homeowners 9 21 29 38 12 15 52 18 97 97 Other personal lines - 1 2 1 2 1 2 2 4 7 Total 9 27 34 41 15 17 59 20 111 111 Allstate Protection $ 303 $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,572 $ 1,719 Allstate Protection Auto $ 63 $ 164 $ 207 $ 141 $ 53 $ 25 $ 155 $ 13 $ 575 $ 246 Homeowners 193 285 678 613 264 223 581 245 1,769 1,313 Other personal lines 39 25 64 64 35 19 49 31 192 134 Commercial lines 7 7 12 9 6 3 12 5 35 26 Other business lines 1 - - - - - - - 1 - $ 303 $ 481 $ 961 $ 827 $ 358 $ 270 $ 797 $ 294 $ 2,572 $ 1,719 THE ALLSTATE CORPORATION CATASTROPHE LOSSES BY BRAND ($ in millions) Twelve months endedThree months ended

35 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 3.8 8.2 31,307 2,572 2,419 7.7 Average 6.4 13.1 8.1 5.2 8.2 7.1 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

36 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 8.3 140 46.2 1.8 140 $50 million to $100 million 1 8.3 72 23.8 0.9 72 Less than $50 million 10 83.4 82 27.0 1.0 8 Total 12 100.0 % 294 97.0 3.7 25 Prior year reserve reestimates (7) (2.3) (0.1) Prior quarter reserve reestimates 16 5.3 0.2 Total catastrophe losses $ 303 100.0 % 3.8 Average Number Claims and Combined catastrophe Size of catastrophe of events claims expense ratio impact loss per event Greater than $250 million 2 2.3 % $ 629 24.5 % 2.0 $ 315 $101 million to $250 million 2 2.3 330 12.8 1.1 165 $50 million to $100 million 8 9.3 591 23.0 1.9 74 Less than $50 million 74 86.1 1,016 39.5 3.2 14 Total 86 100.0 % 2,566 99.8 8.2 30 Prior year reserve reestimates 6 0.2 - Total catastrophe losses $ 2,572 100.0 % 8.2 Twelve months ended December 31, 2016 THE ALLSTATE CORPORATION CATASTROPHE BY SIZE OF EVENT ($ in millions) Three months ended December 31, 2016

37 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Prior Year Reserve Reestimates (1) Auto $ (114) $ (10) $ (36) $ 5 $ (19) $ 14 $ 11 $ 24 $ (155) $ 30 Homeowners (32) (4) 19 (7) (14) (15) 4 1 (24) (24) Other personal lines (1) (2) (11) 5 - 11 6 1 (9) 18 Commercial lines 6 13 23 20 - (12) 4 10 62 2 Other business lines 1 3 - - - 1 1 - 4 2 Allstate Protection (140) - (5) 23 (33) (1) 26 36 (122) 28 Discontinued Lines and Coverages 3 99 2 1 2 48 2 1 105 53 Property-Liability $ (137) $ 99 $ (3) $ 24 $ (31) $ 47 $ 28 $ 37 $ (17) $ 81 Allstate brand (2) $ (120) $ 3 $ (2) $ 13 $ (22) $ (13) $ 26 $ 47 $ (106) $ 38 Esurance brand (2) (9) (4) (4) (4) (5) (5) (3) (4) (21) (17) Encompass brand (2) (11) 1 1 14 (6) 17 3 (7) 5 7 Allstate Protection (2) $ (140) $ - $ (5) $ 23 $ (33) $ (1) $ 26 $ 36 $ (122) $ 28 Effect of Prior Year Reserve Reestimates on Combined Ratio (1)(3) Auto (1.4) (0.1) (0.5) - (0.2) 0.2 0.2 0.3 (0.5) 0.1 Homeowners (0.4) (0.1) 0.3 (0.1) (0.2) (0.2) - - (0.1) (0.1) Other personal lines - - (0.1) - - 0.1 0.1 - - 0.1 Commercial lines 0.1 0.2 0.3 0.3 - (0.1) - 0.2 0.2 - Other business lines - - - - - - - - - - Allstate Protection (1.7) - - 0.2 (0.4) - 0.3 0.5 (0.4) 0.1 Discontinued Lines and Coverages - 1.3 - 0.1 - 0.6 - - 0.3 0.2 Property-Liability (1.7) 1.3 - 0.3 (0.4) 0.6 0.3 0.5 (0.1) 0.3 Allstate brand (2) (1.5) - - 0.1 (0.3) (0.2) 0.3 0.6 (0.3) 0.1 Esurance brand (2) (0.1) - - (0.1) - - - - (0.1) - Encompass brand (2) (0.1) - - 0.2 (0.1) 0.2 - (0.1) - - Allstate Protection (2) (1.7) - - 0.2 (0.4) - 0.3 0.5 (0.4) 0.1 (1) (2) (3) Calculated using Property-Liability premiums earned for the respective period. THE ALLSTATE CORPORATION PROPERTY-LIABILITY PRIOR YEAR RESERVE REESTIMATES ($ in millions) Favorable reserve reestimates are shown in parentheses. (Favorable) unfavorable reserve reestimates included in catastrophe losses for Allstate brand, Esurance brand, Encompass brand and Allstate Protection totaled $(7) million, $0 million, $0 million and, $(7) million and $(15) million, $0 million, $(1) million and $(16) million, respectively, in the three months ended December 31, 2016 and 2015, respectively. Unfavorable (favorable) reserve reestimates included in catastrophe losses for Allstate brand, Esurance brand, Encompass brand and Allstate Protection totaled $6 million, $0 million, $0 million, $6 million and $(14) million, $1 million, $(2) million and $(15) million, respectively, in the twelve months ended December 31, 2016 and 2015, respectively. Twelve months endedThree months ended

38 2016 2015 2014 2013 2012 Allstate brand $ (106) $ 38 $ (171) $ (220) $ (671) Esurance brand (21) (17) (16) - - Encompass brand 5 7 (9) (43) (45) Allstate Protection (122) 28 (196) (263) (716) Discontinued Lines and Coverages 105 53 112 142 51 Property-Liability $ (17) $ 81 $ (84) $ (121) $ (665) Effect of Property-Liability prior year reserve reestimates on the combined ratio (0.1) 0.3 (0.3) (0.4) (2.5) (1) Favorable reserve reestimates are shown in parentheses. Twelve months ended December 31, THE ALLSTATE CORPORATION PROPERTY-LIABILITY HISTORICAL PRIOR YEAR RESERVE REESTIMATES (1) ($ in millions)

39 2016 2015 2014 2013 2012 (net of reinsurance) Net reserve for claims and claims expense, beginning of year $ 17,977 $ 17,229 $ 17,193 $ 17,278 $ 17,787 Acquisitions - - - - (13) Claims and claims expense Provision attributable to the current year 22,238 20,953 19,512 18,032 19,149 Change in provision attributable to prior years (1) (17) 81 (84) (121) (665) Total claims and claims expense 22,221 21,034 19,428 17,911 18,484 Payments Claims and claims expense attributable to current year (14,222) (13,660) (12,924) (11,658) (12,545) Claims and claims expense attributable to prior years (6,910) (6,626) (6,468) (6,338) (6,435) Total payments (21,132) (20,286) (19,392) (17,996) (18,980) Net reserve for claims and claims expense, end of year (2) $ 19,066 $ 17,977 $ 17,229 $ 17,193 $ 17,278 Percent change in loss reserves 6.1 % 4.3 % 0.2 % (0.5) % (2.9) % (1) Reserve reestimates due to: Asbestos and environmental claims $ 90 $ 40 $ 102 $ 104 $ 48 All other property-liability claims (107) 41 (186) (225) (713) Change in pre-tax reserve $ (17) $ 81 $ (84) $ (121) $ (665) (2) THE ALLSTATE CORPORATION HISTORICAL PROPERTY-LIABILITY LOSS RESERVES ($ in millions) Twelve months ended December 31, Net reserves for claims and claims expense are net of expected reinsurance recoveries of $6.18 billion, $5.89 billion, $5.69 billion, $4.66 billion and $4.01 billion at December 31, 2016, 2015, 2014, 2013 and 2012, respectively.

40 Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2016 2015 2014 2013 2012 (net of reinsurance) Asbestos claims (1) Beginning reserves $ 936 $ 890 $ 907 $ 960 $ 960 $ 1,014 $ 1,017 $ 1,026 $ 1,078 Incurred claims and claims expense - 67 - - 67 39 87 74 26 Claims and claims expense paid (24) (21) (17) (53) (115) (93) (90) (83) (78) Ending reserves $ 912 $ 936 $ 890 $ 907 $ 912 $ 960 $ 1,014 $ 1,017 $ 1,026 Claims and claims expense paid as a percent of ending reserves 2.6% 2.2% 1.9% 5.8% 12.6% 9.7% 8.9% 8.2% 7.6% Environmental claims (1) Beginning reserves $ 190 $ 173 $ 177 $ 179 $ 179 $ 203 $ 208 $ 193 $ 185 Incurred claims and claims expense - 23 - - 23 1 15 30 22 Claims and claims expense paid (11) (6) (4) (2) (23) (25) (20) (15) (14) Ending reserves $ 179 $ 190 $ 173 $ 177 $ 179 $ 179 $ 203 $ 208 $ 193 Claims and claims expense paid as a percent of ending reserves 6.1% 3.2% 2.3% 1.1% 12.8% 14.0% 9.9% 7.2% 7.3% (1) The 3-year survival ratio for the combined environmental and asbestos claims was 8.9, 10.4, 12.2, 14.4 and 14.3 for 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

41 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Auto $ 4,756 $ 4,940 $ 4,767 $ 4,746 $ 4,576 $ 4,746 $ 4,588 $ 4,535 $ 19,209 $ 18,445 Homeowners 1,638 1,869 1,831 1,392 1,634 1,879 1,819 1,379 6,730 6,711 Landlord 133 141 133 122 137 143 138 128 529 546 Renter 68 84 75 67 65 84 73 67 294 289 Condominium 63 70 67 53 58 64 63 51 253 236 Other 129 152 153 111 116 138 150 111 545 515 Other personal lines 393 447 428 353 376 429 424 357 1,621 1,586 Commercial lines 115 123 135 126 126 124 138 128 499 516 Total 6,902 7,379 7,161 6,617 6,712 7,178 6,969 6,399 28,059 27,258 Net premiums earned Auto $ 4,826 $ 4,793 $ 4,745 $ 4,667 $ 4,638 $ 4,597 $ 4,524 $ 4,432 $ 19,031 $ 18,191 Homeowners 1,691 1,683 1,684 1,678 1,674 1,663 1,645 1,631 6,736 6,613 Other personal lines 403 399 397 393 395 396 395 391 1,592 1,577 Commercial lines 123 127 127 129 129 128 128 125 506 510 Total 7,043 7,002 6,953 6,867 6,836 6,784 6,692 6,579 27,865 26,891 Incurred losses Auto $ 3,416 $ 3,610 $ 3,634 $ 3,519 $ 3,495 $ 3,455 $ 3,431 $ 3,175 $ 14,179 $ 13,556 Homeowners 765 893 1,260 1,190 816 820 1,147 894 4,108 3,677 Other personal lines 234 236 256 261 216 241 259 244 987 960 Commercial lines 109 112 135 119 100 97 105 98 475 400 Total 4,524 4,851 5,285 5,089 4,627 4,613 4,942 4,411 19,749 18,593 Expenses Auto $ 1,181 $ 1,134 $ 1,168 $ 1,103 $ 1,077 $ 1,086 $ 1,155 $ 1,113 $ 4,586 $ 4,431 Homeowners 396 384 373 377 372 385 372 389 1,530 1,518 Other personal lines 117 113 106 103 101 109 105 105 439 420 Commercial lines 34 34 35 38 36 36 40 38 141 150 Total 1,728 1,665 1,682 1,621 1,586 1,616 1,672 1,645 6,696 6,519 Underwriting income (loss) Auto $ 229 $ 49 $ (57) $ 45 $ 66 $ 56 $ (62) $ 144 $ 266 $ 204 Homeowners 530 406 51 111 486 458 126 348 1,098 1,418 Other personal lines 52 50 35 29 78 46 31 42 166 197 Commercial lines (20) (19) (43) (28) (7) (5) (17) (11) (110) (40) Total 791 486 (14) 157 623 555 78 523 1,420 1,779 Loss ratio 64.2 69.3 76.0 74.1 67.7 68.0 73.8 67.1 70.9 69.2 Expense ratio 24.6 23.8 24.2 23.6 23.2 23.8 25.0 25.0 24.0 24.2 Combined ratio 88.8 93.1 100.2 97.7 90.9 91.8 98.8 92.1 94.9 93.4 Effect of catastrophe losses on combined ratio 4.1 6.3 13.1 11.4 5.0 3.7 10.9 4.2 8.7 5.9 Effect of prior year reserve reestimates on combined ratio (1.7) - - 0.2 (0.3) (0.2) 0.3 0.7 (0.4) 0.1 Reconciliation of combined ratio to underlying combined ratio Combined ratio 88.8 93.1 100.2 97.7 90.9 91.8 98.8 92.1 94.9 93.4 Effect of catastrophe losses (4.1) (6.3) (13.1) (11.4) (5.0) (3.7) (10.9) (4.2) (8.7) (5.9) Effect of prior year non-catastrophe reserve reestimates 1.6 - 0.2 (0.2) 0.1 0.2 (0.2) (0.8) 0.4 (0.2) Underlying combined ratio * 86.3 86.8 87.3 86.1 86.0 88.3 87.7 87.1 86.6 87.3 Policies in Force (in thousands) Auto 19,742 19,852 20,061 20,145 20,326 20,367 20,258 20,036 19,742 20,326 Homeowners 6,099 6,109 6,135 6,152 6,174 6,163 6,141 6,114 6,099 6,174 Other personal lines 4,214 4,202 4,203 4,208 4,219 4,208 4,170 4,135 4,214 4,219 Commercial lines 285 296 308 318 324 328 330 326 285 324 Excess and surplus 21 22 23 24 25 26 26 27 21 25 Total 30,361 30,481 30,730 30,847 31,068 31,092 30,925 30,638 30,361 31,068 (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) Twelve months endedThree months ended

42 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net premiums written Esurance $ 399 $ 446 $ 392 $ 452 $ 378 $ 423 $ 371 $ 441 $ 1,689 $ 1,613 Encompass 263 299 315 263 293 331 338 282 1,140 1,244 Allstate Roadside Services 67 79 77 77 70 87 88 91 300 336 Allstate Dealer Services 91 106 106 106 98 118 111 93 409 420 Other business lines 158 185 183 183 168 205 199 184 709 756 Total 820 930 890 898 839 959 908 907 3,538 3,613 Net premiums earned Esurance $ 423 $ 418 $ 415 $ 404 $ 400 $ 399 $ 402 $ 387 $ 1,660 $ 1,588 Encompass 290 299 304 309 313 319 318 319 1,202 1,269 Other business lines 145 150 142 143 135 148 137 141 580 561 Total 858 867 861 856 848 866 857 847 3,442 3,418 Incurred losses Esurance $ 319 $ 326 $ 319 $ 294 $ 299 $ 290 $ 304 $ 299 $ 1,258 $ 1,192 Encompass 177 208 231 239 214 233 273 213 855 933 Other business lines 60 69 64 61 57 71 66 69 254 263 Total 556 603 614 594 570 594 643 581 2,367 2,388 Expenses Esurance $ 125 $ 133 $ 133 $ 135 $ 129 $ 135 $ 139 $ 157 $ 526 $ 560 Encompass 84 86 88 88 85 90 95 92 346 362 Other business lines 83 74 74 68 72 61 63 69 299 265 Answer Financial 2 2 2 1 2 1 3 2 7 8 Total 294 295 297 292 288 287 300 320 1,178 1,195 Underwriting income (loss) Esurance $ (21) $ (41) $ (37) $ (25) $ (28) $ (26) $ (41) $ (69) $ (124) $ (164) Encompass 29 5 (15) (18) 14 (4) (50) 14 1 (26) Other business lines 2 7 4 14 6 16 8 3 27 33 Answer Financial (2) (2) (2) (1) (2) (1) (3) (2) (7) (8) Total 8 (31) (50) (30) (10) (15) (86) (54) (103) (165) Loss ratio 64.8 69.6 71.3 69.4 67.2 68.6 75.0 68.6 68.8 69.9 Expense ratio 34.3 34.0 34.5 34.1 34.0 33.1 35.0 37.8 34.2 34.9 Combined ratio 99.1 103.6 105.8 103.5 101.2 101.7 110.0 106.4 103.0 104.8 Effect of catastrophe losses on combined ratio 1.7 4.7 5.6 5.1 2.1 2.3 7.8 2.4 4.3 3.7 Effect of prior year reserve reestimates on combined ratio (2.2) - (0.3) 1.2 (1.3) 1.5 0.1 (1.3) (0.3) (0.2) Effect of amortization of purchased intangible assets 0.6 1.1 1.0 1.0 1.6 1.4 1.5 1.4 0.9 1.4 Reconciliation of combined ratio to underlying combined ratio Combined ratio 99.1 103.6 105.8 103.5 101.2 101.7 110.0 106.4 103.0 104.8 Effect of catastrophe losses (1.7) (4.7) (5.6) (5.1) (2.1) (2.3) (7.8) (2.4) (4.3) (3.7) Effect of prior year non-catastrophe reserve reestimates 2.2 0.1 0.1 (1.1) 1.2 (1.2) - 0.9 0.3 0.2 Effect of amortization of purchased intangible assets (0.6) (1.1) (1.0) (1.0) (1.6) (1.4) (1.5) (1.4) (0.9) (1.4) Underlying combined ratio * 99.0 97.9 99.3 96.3 98.7 96.8 100.7 103.5 98.1 99.9 Policies in Force (in thousands) Esurance 1,496 1,494 1,500 1,511 1,491 1,503 1,522 1,527 1,496 1,491 Encompass 1,015 1,055 1,099 1,138 1,172 1,207 1,240 1,259 1,015 1,172 Other business lines 768 797 824 856 894 920 937 941 768 894 Total 3,279 3,346 3,423 3,505 3,557 3,630 3,699 3,727 3,279 3,557 (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) Three months ended Twelve months ended

43 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Premiums $ 364 $ 361 $ 353 $ 354 $ 339 $ 329 $ 326 $ 328 $ 1,432 $ 1,322 Contract charges 210 210 211 212 208 209 210 209 843 836 Net investment income 453 427 435 419 420 491 489 484 1,734 1,884 Contract benefits (464) (484) (454) (455) (456) (460) (446) (441) (1,857) (1,803) Interest credited to contractholder funds (177) (183) (179) (184) (186) (191) (191) (192) (723) (760) Amortization of deferred policy acquisition costs (70) (68) (68) (71) (65) (61) (62) (69) (277) (257) Operating costs and expenses (127) (126) (121) (123) (119) (112) (118) (123) (497) (472) Restructuring and related charges - - (1) - 3 (1) (2) - (1) - Income tax expense on operations (59) (43) (56) (48) (46) (66) (67) (62) (206) (241) Operating income 130 94 120 104 98 138 139 134 448 509 Realized capital gains and losses, after-tax (8) (14) - (32) (62) 125 38 72 (54) 173 Valuation changes on embedded derivatives that are not hedged, after-tax 6 - (4) (4) 2 (2) 4 (5) (2) (1) 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) - (1) (2) - (4) (3) Gain (loss) on disposition of operations, after-tax - 1 1 1 1 2 - (1) 3 2 Change in accounting for investments in qualified affordable housing projects, after-tax - - - - - - - (17) - (17) Net income applicable to common shareholders $ 127 $ 80 $ 116 $ 68 $ 39 $ 262 $ 179 $ 183 $ 391 $ 663 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL SEGMENT RESULTS ($ in millions) Twelve months endedThree months ended

44 2016 2015 2014 2013 2012 Premiums $ 1,432 $ 1,322 $ 1,259 $ 1,248 $ 1,168 Contract charges 843 836 898 1,104 1,073 Net investment income 1,734 1,884 2,131 2,538 2,647 Periodic settlements and accruals on non-hedge derivative instruments - - (1) 17 55 Contract benefits (1,857) (1,803) (1,765) (1,917) (1,818) Interest credited to contractholder funds (723) (760) (898) (1,254) (1,434) Amortization of deferred policy acquisition costs (277) (257) (255) (330) (350) Operating costs and expenses (497) (472) (466) (565) (576) Restructuring and related charges (1) - (2) (7) - Income tax expense on operations (206) (241) (294) (246) (236) Operating income 448 509 607 588 529 Realized capital gains and losses, after-tax (54) 173 94 46 (8) Valuation changes on embedded derivatives that are not hedged, after-tax (2) (1) (15) (16) 82 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (4) (3) (3) (5) (42) DAC and DSI unlocking relating to realized capital gains and losses, after-tax - - - 7 4 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - 1 (11) (36) Gain (loss) on disposition of operations, after-tax 3 2 (53) (514) 12 Change in accounting for investments in qualified affordable housing projects, after-tax - (17) - - - Net income applicable to common shareholders $ 391 $ 663 $ 631 $ 95 $ 541 Life insurance in force, net of reinsurance $ 352,362 (1) $ 349,697 $ 328,027 (2) $ 346,202 $ 326,169 (1) (2) The decline in 2014 is related to the sale of LBL. THE ALLSTATE CORPORATION HISTORICAL ALLSTATE FINANCIAL RESULTS ($ in millions) As of or for the Year Ended December 31, Estimated using the most available information.

45 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Return on Attributed Equity Numerator: Net income applicable to common shareholders (1) $ 391 $ 303 $ 485 $ 548 $ 663 $ 832 $ 686 $ 652 Denominator: Beginning attributed equity (2) $ 7,350 $ 7,475 $ 7,621 $ 7,920 $ 7,672 $ 7,356 $ 7,262 $ 7,812 Ending attributed equity 7,904 8,205 8,055 7,680 7,350 7,475 7,621 7,920 Average attributed equity (3) $ 7,627 $ 7,840 $ 7,838 $ 7,800 $ 7,511 $ 7,416 $ 7,442 $ 7,866 Return on attributed equity 5.1 % 3.9 % 6.2 % 7.0 % 8.8 % 11.2 % 9.2 % 8.3 % Operating Income Return on Attributed Equity Numerator: Operating income (1) $ 448 $ 416 $ 460 $ 479 $ 509 $ 539 $ 526 $ 552 Denominator: Beginning attributed equity (2) $ 7,350 $ 7,475 $ 7,621 $ 7,920 $ 7,672 $ 7,356 $ 7,262 $ 7,812 Unrealized net capital gains and losses 556 722 1,030 1,499 1,420 1,305 1,285 1,280 Adjusted beginning attributed equity 6,794 6,753 6,591 6,421 6,252 6,051 5,977 6,532 Ending attributed equity 7,904 8,205 8,055 7,680 7,350 7,475 7,621 7,920 Unrealized net capital gains and losses 721 1,150 1,077 824 556 722 1,030 1,499 Adjusted ending attributed equity 7,183 7,055 6,978 6,856 6,794 6,753 6,591 6,421 Average adjusted attributed equity (3) $ 6,989 $ 6,904 $ 6,785 $ 6,639 $ 6,523 $ 6,402 $ 6,284 $ 6,477 Operating income return on attributed equity 6.4 % 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

46 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 PREMIUMS AND CONTRACT CHARGES - BY PRODUCT Underwritten Products Traditional life insurance premiums $ 151 $ 145 $ 139 $ 138 $ 144 $ 135 $ 131 $ 132 $ 573 $ 542 Accident and health insurance premiums 213 216 214 216 195 194 195 196 859 780 Interest-sensitive life insurance contract charges 206 206 208 209 204 205 207 206 829 822 570 567 561 563 543 534 533 534 2,261 2,144 Annuities Immediate annuities with life contingencies premiums - - - - - - - - - - Other fixed annuity contract charges 4 4 3 3 4 4 3 3 14 14 4 4 3 3 4 4 3 3 14 14 Total $ 574 $ 571 $ 564 $ 566 $ 547 $ 538 $ 536 $ 537 $ 2,275 $ 2,158 PREMIUMS AND CONTRACT CHARGES - BY DISTRIBUTION CHANNEL Allstate agencies $ 312 $ 308 $ 306 $ 305 $ 304 $ 300 $ 297 $ 297 $ 1,231 $ 1,198 Workplace enrolling agents 236 238 232 233 215 212 209 210 939 846 Other (1) 26 25 26 28 28 26 30 30 105 114 Total $ 574 $ 571 $ 564 $ 566 $ 547 $ 538 $ 536 $ 537 $ 2,275 $ 2,158 PROPRIETARY LIFE INSURANCE POLICIES SOLD BY ALLSTATE AGENCIES (2)(3) 38,614 27,481 29,839 25,458 39,701 16,402 34,494 30,091 121,392 120,688 ALLSTATE BENEFITS NEW BUSINESS WRITTEN PREMIUMS (4) $ 177 $ 69 $ 70 $ 82 $ 179 $ 69 $ 64 $ 65 $ 398 $ 377 (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. Three months ended THE ALLSTATE CORPORATION ALLSTATE FINANCIAL PREMIUMS AND CONTRACT CHARGES ($ in millions) Twelve months ended 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.

47 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Contractholders funds, beginning balance $ 20,583 $ 20,845 $ 21,092 $ 21,295 $ 21,559 $ 21,968 $ 22,267 $ 22,529 $ 21,295 $ 22,529 Deposits Interest-sensitive life insurance 248 251 251 252 251 251 253 249 1,002 1,004 Fixed annuities 38 40 40 44 39 56 53 51 162 199 Total deposits 286 291 291 296 290 307 306 300 1,164 1,203 Interest credited 168 181 184 189 183 193 185 199 722 760 Benefits, withdrawals, maturities and other adjustments Benefits (231) (258) (225) (252) (247) (272) (285) (273) (966) (1,077) Surrenders and partial withdrawals (237) (271) (300) (245) (295) (375) (303) (305) (1,053) (1,278) Maturities of and interest payments on institutional products (86) - - - - - (1) - (86) (1) Contract charges (209) (208) (206) (206) (207) (205) (203) (203) (829) (818) Net transfers from separate accounts 1 2 1 1 2 2 2 1 5 7 Other adjustments (15) 1 8 14 10 (59) - 19 8 (30) Total benefits, withdrawals, maturities and other adjustments (777) (734) (722) (688) (737) (909) (790) (761) (2,921) (3,197) Contractholder funds, ending balance $ 20,260 $ 20,583 $ 20,845 $ 21,092 $ 21,295 $ 21,559 $ 21,968 $ 22,267 $ 20,260 $ 21,295 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL CHANGE IN CONTRACTHOLDER FUNDS ($ in millions) Twelve months endedThree months ended

48 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Benefit spread Premiums $ 364 $ 361 $ 353 $ 354 $ 339 $ 329 $ 326 $ 328 $ 1,432 $ 1,322 Cost of insurance contract charges (1) 139 136 140 141 137 137 138 138 556 550 Contract benefits excluding the implied interest on immediate annuities with life contingencies (2) (336) (358) (325) (327) (328) (333) (319) (312) (1,346) (1,292) Total benefit spread 167 139 168 168 148 133 145 154 642 580 Investment spread Net investment income 453 427 435 419 420 491 489 484 1,734 1,884 Implied interest on immediate annuities with life contingencies (2) (128) (126) (129) (128) (128) (127) (127) (129) (511) (511) Interest credited to contractholder funds (168) (183) (185) (190) (183) (194) (185) (199) (726) (761) Total investment spread 157 118 121 101 109 170 177 156 497 612 Surrender charges and contract maintenance expense fees (1) 71 74 71 71 71 72 72 71 287 286 Realized capital gains and losses (11) (21) - (49) (97) 194 59 111 (81) 267 Amortization of deferred policy acquisition costs (71) (70) (69) (73) (64) (63) (65) (70) (283) (262) Operating costs and expenses (127) (126) (121) (123) (119) (112) (118) (123) (497) (472) Restructuring and related charges - - (1) - 3 (1) (2) - (1) - Gain (loss) on disposition of operations 1 1 1 2 1 3 1 (2) 5 3 Income tax expense (60) (35) (54) (29) (13) (134) (90) (114) (178) (351) Net income applicable to common shareholders $ 127 $ 80 $ 116 $ 68 $ 39 $ 262 $ 179 $ 183 $ 391 $ 663 Benefit spread by product group Life insurance $ 78 $ 64 $ 85 $ 80 $ 75 $ 66 $ 65 $ 68 $ 307 $ 274 Accident and health insurance 105 103 108 105 92 90 97 107 421 386 Annuities (16) (28) (25) (17) (19) (23) (17) (21) (86) (80) Total benefit spread $ 167 $ 139 $ 168 $ 168 $ 148 $ 133 $ 145 $ 154 $ 642 $ 580 Investment spread by product group Life insurance $ 33 $ 30 $ 29 $ 34 $ 41 $ 33 $ 33 $ 33 $ 126 $ 140 Accident and health insurance 4 4 4 4 4 4 4 4 16 16 Annuities and institutional products 51 25 35 17 10 82 77 69 128 238 Net investment income on investments supporting capital 60 59 59 52 52 54 57 57 230 220 Investment spread before valuation changes on embedded derivatives that are not hedged 148 118 127 107 107 173 171 163 500 614 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged 9 - (6) (6) 2 (3) 6 (7) (3) (2) Total investment spread $ 157 $ 118 $ 121 $ 101 $ 109 $ 170 $ 177 $ 156 $ 497 $ 612 (1) Reconciliation of contract charges Cost of insurance contract charges $ 139 $ 136 $ 140 $ 141 $ 137 $ 137 $ 138 $ 138 $ 556 $ 550 Surrender charges and contract maintenance expense fees 71 74 71 71 71 72 72 71 287 286 Total contract charges $ 210 $ 210 $ 211 $ 212 $ 208 $ 209 $ 210 $ 209 $ 843 $ 836 (2) Reconciliation of contract benefits Contract benefits excluding the implied interest on immediate annuities with life contingencies $ (336) $ (358) $ (325) $ (327) $ (328) $ (333) $ (319) $ (312) $ (1,346) $ (1,292) Implied interest on immediate annuities with life contingencies (128) (126) (129) (128) (128) (127) (127) (129) (511) (511) Total contract benefits $ (464) $ (484) $ (454) $ (455) $ (456) $ (460) $ (446) $ (441) $ (1,857) $ (1,803) THE ALLSTATE CORPORATION ALLSTATE FINANCIAL ANALYSIS OF NET INCOME ($ in millions) Twelve months endedThree months ended

49 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 5.0 % 3.9 % 1.1 % 5.4 % 3.9 % 1.5 % Deferred fixed annuities and institutional products 4.1 2.8 1.3 4.4 2.8 1.6 Immediate fixed annuities with and without life contingencies 7.3 6.0 1.3 5.3 5.9 (0.6) 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 % 5.2 % 3.9 % 1.3 % 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 6.5 5.9 0.6 7.0 5.9 1.1 Investments supporting capital, traditional life and other products 3.9 n/a n/a 4.0 n/a n/a Twelve months ended December 31, 2016 Twelve months ended December 31, 2015 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS Three months ended December 31, 2016 Three months ended December 31, 2015

50 Twelve months ended Dec. 31, 2016 Attributed equity Reserves and excluding unrealized Dec. Sept. June March Dec. Sept. June March Contractholder funds capital gains/losses (3)(4) Operating income (5) 2016 2016 2016 2016 2015 2015 2015 2015 Underwritten products Life insurance $ 10,850 $ 2,681 $ 260 9.9 % 10.1 % 10.8 % 11.1 % 10.6 % 10.0 % 9.3 % 9.8 % Accident and health insurance 873 676 87 13.2 12.8 12.4 12.2 12.7 13.7 14.9 15.9 Subtotal 11,723 3,357 347 10.6 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) 5,030 1,975 (15) (0.8) (1.7) (0.9) (0.2) 0.5 1.6 0.5 0.6 Standard structured settlements and SPIA (2) 6,604 1,272 54 4.3 2.2 4.1 4.9 6.8 9.4 8.8 8.4 Subtotal (6) 11,634 3,247 39 1.2 (0.1) 1.1 2.0 3.1 4.7 3.8 3.7 Deferred Annuities 9,142 578 61 9.7 9.6 10.0 10.4 10.1 10.1 10.6 10.3 Institutional products - 1 1 Subtotal 20,776 3,826 101 2.7 1.8 2.9 3.7 4.8 6.2 6.1 6.0 Total Allstate Financial $ 32,499 $ 7,183 $ 448 6.4 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 $ 260 $ 87 $ 101 $ 448 Realized capital gains and losses, after-tax (26) (2) (26) (54) Valuation changes on embedded derivatives that are not hedged, after-tax - - (2) (2) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (4) - - (4) Gain on disposition of operations, after-tax - - 3 3 Net income applicable to common shareholders $ 230 $ 85 $ 76 $ 391 (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 Dec. 31, 2016 Twelve months ended Dec. 31, 2016 Annuities and institutional products: Twelve months ended Operating income return on attributed equity (%) Of the total immediate annuities, $8,622 are reported in reserve for life-contingent contract benefits and $3,012 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.

51 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 ALLSTATE FINANCIAL INSURANCE POLICIES AND ANNUITIES IN FORCE BY PRODUCT Underwritten products Life insurance 2,476 2,475 2,478 2,467 2,463 2,459 2,456 2,448 Accident and health insurance 3,300 3,275 3,294 3,278 2,873 2,848 2,843 2,777 5,776 5,750 5,772 5,745 5,336 5,307 5,299 5,225 Annuities Deferred annuities 156 160 163 168 172 176 181 186 Immediate annuities 97 98 100 101 102 104 105 106 253 258 263 269 274 280 286 292 Total 6,029 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) 1,928 1,924 1,924 1,922 1,924 1,917 1,911 1,904 Allstate Benefits 3,758 3,736 3,755 3,729 3,315 3,292 3,287 3,218 Other (3) 343 348 356 363 371 378 387 395 Total 6,029 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.

52 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Annuities Benefits Segment Life Annuities Benefits Segment $ 140 $ - $ 224 $ 364 $ 133 $ - $ 206 $ 339 178 4 28 210 178 4 26 208 124 312 17 453 128 274 18 420 (188) (147) (129) (464) (189) (149) (118) (456) (72) (97) (8) (177) (70) (107) (9) (186) Amortization of deferred policy acquisition costs (32) (2) (36) (70) (32) (2) (31) (65) (56) (9) (62) (127) (53) (9) (57) (119) - - - - 2 1 - 3 (28) (20) (11) (59) (30) (4) (12) (46) 66 41 23 130 67 8 23 98 (7) - (1) (8) (12) (47) (3) (62) - 6 - 6 - 2 - 2 (1) - - (1) - - - - Gain on disposition of operations, after-tax - - - - - 1 - 1 $ 58 $ 47 $ 22 $ 127 $ 55 $ (36) $ 20 $ 39 Premiums and Contract Charges - by Product Underwritten Products $ 140 $ - $ 11 $ 151 $ 133 $ - $ 11 $ 144 - - 213 213 - - 195 195 178 - 28 206 178 - 26 204 318 - 252 570 311 - 232 543 - - - - - - - - - 4 - 4 - 4 - 4 - 4 - 4 - 4 - 4 $ 318 $ 4 $ 252 $ 574 $ 311 $ 4 $ 232 $ 547 Life Insurance $ 75 $ - $ 3 $ 78 $ 69 $ - $ 6 $ 75 Accident and health insurance (2) - 107 105 (4) - 96 92 Annuities - (16) - (16) - (19) - (19) $ 73 $ (16) $ 110 $ 167 $ 65 $ (19) $ 102 $ 148 Annuities and institutional products $ - $ 51 $ - $ 51 $ - $ 10 $ - $ 10 Life insurance 31 - 2 33 37 - 4 41 Accident and health insurance 1 - 3 4 1 - 3 4 Net investment income on investments supporting capital 20 36 4 60 19 31 2 52 derivatives that are not hedged 52 87 9 148 57 41 9 107 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - 9 - 9 - 2 - 2 Total investment spread $ 52 $ 96 $ 9 $ 157 $ 57 $ 43 $ 9 $ 109 (1) Premiums THE ALLSTATE CORPORATION ALLSTATE LIFE, ALLSTATE ANNUITIES AND ALLSTATE BENEFITS RESULTS AND PRODUCT INFORMATION ($ in millions) For the three months ended December 31, 2016 For the three months ended December 31, 2015 Valuation changes on embedded derivatives Contract charges Net investment income (1) 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 applicable to common shareholders Traditional life insurance premiums Accident and health insurance Interest-sensitive life insurance contract charges The increase in Allstate Annuities net investment income in fourth quarter 2016 compared to fourth quarter 2015 primarily relates to higher limited partnership income. Limited partnerships represent 93% of Allstate Financial’s performance-based investments. 100% of Allstate Financial's performance-based investments are used to support Allstate Annuities products. 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

53 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Annuities Benefits Segment Life Annuities Benefits Segment $ 535 $ - $ 897 $ 1,432 $ 507 $ - $ 815 $ 1,322 715 14 114 843 716 14 106 836 482 1,181 71 1,734 490 1,323 71 1,884 (742) (606) (509) (1,857) (749) (602) (452) (1,803) (285) (402) (36) (723) (282) (442) (36) (760) Amortization of deferred policy acquisition costs (125) (7) (145) (277) (127) (6) (124) (257) (225) (32) (240) (497) (212) (38) (222) (472) (1) - - (1) (1) 1 - - (107) (47) (52) (206) (103) (84) (54) (241) 247 101 100 448 239 166 104 509 (24) (26) (4) (54) 1 172 - 173 - (2) - (2) - (1) - (1) (4) - - (4) (4) 1 - (3) Gain (loss) on disposition of operations, after-tax - 3 - 3 (1) 3 - 2 Change in accounting for investments in qualified affordable housing projects, after-tax - - - - (6) (11) - (17) $ 219 $ 76 $ 96 $ 391 $ 229 $ 330 $ 104 $ 663 Premiums and Contract Charges - by Product Underwritten Products $ 533 $ - $ 40 $ 573 $ 505 $ - $ 37 $ 542 2 - 857 859 2 - 778 780 715 - 114 829 716 - 106 822 1,250 - 1,011 2,261 1,223 - 921 2,144 - - - - - - - - - 14 - 14 - 14 - 14 - 14 - 14 - 14 - 14 $ 1,250 $ 14 $ 1,011 $ 2,275 $ 1,223 $ 14 $ 921 $ 2,158 Life Insurance $ 287 $ - $ 20 $ 307 $ 250 $ - $ 24 $ 274 Accident and health insurance (6) - 427 421 (10) - 396 386 Annuities - (86) - (86) - (80) - (80) $ 281 $ (86) $ 447 $ 642 $ 240 $ (80) $ 420 $ 580 Annuities and institutional products $ - $ 128 $ - $ 128 $ - $ 238 $ - $ 238 Life insurance 116 - 10 126 130 - 10 140 Accident and health insurance 5 - 11 16 5 - 11 16 Net investment income on investments supporting capital 76 140 14 230 76 130 14 220 derivatives that are not hedged 197 268 35 500 211 368 35 614 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - (3) - (3) - (2) - (2) Total investment spread $ 197 $ 265 $ 35 $ 497 $ 211 $ 366 $ 35 $ 612 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 applicable to common shareholders 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 twelve months ended December 31, 2016 For the twelve months ended December 31, 2015

54 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Net investment income $ 10 $ 11 $ 11 $ 10 $ 10 $ 9 $ 8 $ 8 $ 42 $ 35 Operating costs and expenses (9) (7) (7) (6) (7) (13) (9) (5) (29) (34) Interest expense (77) (73) (72) (73) (73) (73) (73) (73) (295) (292) Income tax benefit on operations 29 26 26 25 27 28 28 26 106 109 Preferred stock dividends (29) (29) (29) (29) (29) (29) (29) (29) (116) (116) Operating loss (76) (72) (71) (73) (72) (78) (75) (73) (292) (298) Realized capital gains and losses, after-tax (1) - (1) - - - - - (2) - Net loss applicable to common shareholders $ (77) $ (72) $ (72) $ (73) $ (72) $ (78) $ (75) $ (73) $ (294) $ (298) THE ALLSTATE CORPORATION CORPORATE AND OTHER SEGMENT RESULTS ($ in millions) Twelve months endedThree months ended

55 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2016 2016 2016 2016 2015 2016 2016 2016 2016 2015 Fixed income securities, at fair value: Tax-exempt $ 4,447 $ 4,798 $ 4,612 $ 4,466 $ 4,285 $ - $ 1 $ 2 $ 2 $ 4 Taxable 25,855 26,968 25,139 24,615 25,447 25,578 26,225 26,169 25,858 26,034 Equity securities, at fair value 4,074 3,604 3,632 3,709 3,480 1,589 1,681 1,630 1,405 1,599 Mortgage loans 280 270 313 294 296 4,206 4,126 4,140 4,008 4,042 Limited partnership interests (1) 3,042 2,913 2,842 2,688 2,575 2,771 2,674 2,564 2,399 2,295 Short-term, at fair value 3,405 (2) 917 1,619 1,452 959 609 733 1,197 1,626 861 Other 1,619 1,587 1,532 1,512 1,437 2,087 2,076 2,058 2,038 1,957 Total $ 42,722 $ 41,057 $ 39,689 $ 38,736 $ 38,479 $ 36,840 $ 37,516 $ 37,760 $ 37,336 $ 36,792 Fixed income securities, amortized cost: Tax-exempt $ 4,498 $ 4,726 $ 4,509 $ 4,384 $ 4,218 $ - $ 1 $ 2 $ 2 $ 4 Taxable 25,706 26,447 24,746 24,454 25,672 24,424 24,330 24,357 24,481 25,145 Ratio of fair value to amortized cost 100.3% 101.9% 101.7% 100.8% 99.5% 104.7% 107.8% 107.4% 105.6% 103.5% Equity securities, cost $ 3,671 $ 3,212 $ 3,337 $ 3,417 $ 3,236 $ 1,483 $ 1,585 $ 1,584 $ 1,372 $ 1,567 Short-term, amortized cost 3,405 917 1,619 1,452 959 609 733 1,197 1,626 861 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2016 2016 2016 2016 2015 2016 2016 2016 2016 2015 Fixed income securities, at fair value: Tax-exempt $ 535 $ 600 $ 609 $ 591 $ 585 $ 4,982 $ 5,399 $ 5,223 $ 5,059 $ 4,874 Taxable 1,424 1,714 1,598 1,759 1,593 52,857 54,907 52,906 52,232 53,074 Equity securities, at fair value 3 3 3 3 3 5,666 5,288 5,265 5,117 5,082 Mortgage loans - - - - - 4,486 4,396 4,453 4,302 4,338 Limited partnership interests (1) 1 1 1 4 4 5,814 5,588 5,407 5,091 4,874 Short-term, at fair value 274 213 34 448 302 4,288 1,863 2,850 3,526 2,122 Other - - - - - 3,706 3,663 3,590 3,550 3,394 Total $ 2,237 $ 2,531 $ 2,245 $ 2,805 $ 2,487 $ 81,799 $ 81,104 $ 79,694 $ 78,877 $ 77,758 Fixed income securities, amortized cost: Tax-exempt $ 527 $ 580 $ 585 $ 569 $ 566 $ 5,025 $ 5,307 $ 5,096 $ 4,955 $ 4,788 Taxable 1,421 1,691 1,571 1,737 1,596 51,551 52,468 50,674 50,672 52,413 Ratio of fair value to amortized cost 100.6% 101.9% 102.4% 101.9% 100.7% 102.2% 104.4% 104.2% 103.0% 101.3% Equity securities, cost $ 3 $ 3 $ 3 $ 3 $ 3 $ 5,157 $ 4,800 $ 4,924 $ 4,792 $ 4,806 Short-term, amortized cost 274 213 34 448 302 4,288 1,863 2,850 3,526 2,122 (1) (2) As of December 31, 2016, this balance includes $1.4 billion that was used to fund the acquisition of SquareTrade Holding Company, Inc. on January 3, 2017. As of December 31, 2016, we have commitments to invest in additional limited partnership interests totaling $1.58 billion, $1.40 billion and $2.98 billion for Property-Liability, Allstate Financial, and in Total, respectively. THE ALLSTATE CORPORATION INVESTMENTS ($ in millions) PROPERTY-LIABILITY CORPORATE AND OTHER ALLSTATE FINANCIAL CONSOLIDATED

56 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Investment position Accounting basis Cost method $ 1,282 $ 1,375 $ 1,284 $ 1,193 $ 1,154 $ 1,148 $ 1,130 $ 1,137 Equity method ("EMA") (1) 4,532 4,213 4,123 3,898 3,720 3,675 3,406 3,562 Total $ 5,814 $ 5,588 $ 5,407 $ 5,091 $ 4,874 $ 4,823 $ 4,536 $ 4,699 Cost method-fair value (2) $ 1,493 $ 1,600 $ 1,511 $ 1,466 $ 1,450 $ 1,506 $ 1,482 $ 1,494 Underlying investment Private equity $ 4,210 $ 4,010 $ 3,833 $ 3,494 $ 3,344 $ 3,282 $ 3,012 $ 2,969 Real estate 1,102 1,130 1,204 1,229 1,166 1,160 1,164 1,366 Other 502 448 370 368 364 381 360 364 Total $ 5,814 $ 5,588 $ 5,407 $ 5,091 $ 4,874 $ 4,823 $ 4,536 $ 4,699 Segment Property-Liability $ 3,042 $ 2,913 $ 2,842 $ 2,688 $ 2,575 $ 2,558 $ 2,466 $ 2,571 Allstate Financial 2,771 2,674 2,564 2,399 2,295 2,261 2,066 2,124 Corporate and Other 1 1 1 4 4 4 4 4 Total $ 5,814 $ 5,588 $ 5,407 $ 5,091 $ 4,874 $ 4,823 $ 4,536 $ 4,699 Total Income Accounting basis Cost method $ 26 $ 43 $ 47 $ 39 $ 42 $ 63 $ 75 $ 42 Equity method 152 93 79 82 24 104 43 156 Total $ 178 $ 136 $ 126 $ 121 $ 66 $ 167 $ 118 $ 198 Underlying investment Private equity $ 144 $ 112 $ 114 $ 88 $ 46 $ 162 $ 113 $ 80 Real estate 35 23 12 33 20 5 10 123 Other (1) 1 - - - - (5) (5) Total $ 178 $ 136 $ 126 $ 121 $ 66 $ 167 $ 118 $ 198 Segment Property-Liability $ 82 $ 69 $ 60 $ 58 $ 29 $ 62 $ 45 $ 126 Allstate Financial 96 67 66 63 37 105 73 72 Corporate and Other - - - - - - - - Total $ 178 $ 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 INTERESTS ($ in millions) As of or for the three months ended As of December 31, 2016, valuations of EMA limited partnerships include approximately $511 million of cumulative pre-tax appreciation that has been recognized in earnings but has not been distributed to investors.

57 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 $ 65 $ 3,637 101.8 $ 105 $ 4,304 102.5 $ 122 $ 3,523 103.6 Municipal 217 7,333 103.0 470 7,902 106.3 532 7,818 107.3 Corporate 859 43,601 102.0 1,804 44,474 104.2 1,566 42,700 103.8 Foreign government 32 1,075 103.1 59 1,119 105.6 61 1,152 105.6 Asset-backed securities ("ABS") 2 1,171 100.2 (3) 1,390 99.8 (11) 1,726 99.4 Residential mortgage-backed securities ("RMBS") 77 728 111.8 82 778 111.8 70 818 109.4 Commercial mortgage-backed securities ("CMBS") 8 270 103.1 11 315 103.6 16 368 104.5 Redeemable preferred stock 3 24 114.3 3 24 114.3 3 24 114.3 Total fixed income securities 1,263 57,839 102.2 2,531 60,306 104.4 2,359 58,129 104.2 Equity securities 509 5,666 109.9 488 5,288 110.2 341 5,265 106.9 Short-term investments - 4,288 100.0 - 1,863 100.0 - 2,850 100.0 Derivatives 2 111 n/a 1 85 n/a 2 71 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 1,770 3,015 2,697 Amounts recognized for: Insurance reserves (3) - - - DAC and DSI (4) (146) (216) (195) Amounts recognized (146) (216) (195) Deferred income taxes (571) (982) (878) Unrealized net capital gains and losses, after-tax $ 1,053 $ 1,817 $ 1,624 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 $ 114 $ 3,504 103.4 $ 86 $ 3,922 102.2 $ 118 $ 3,760 103.2 Municipal 442 7,616 106.2 369 7,401 105.2 412 7,494 105.8 Corporate 989 41,272 102.5 153 41,827 100.4 632 41,629 101.5 Foreign government 55 1,054 105.5 50 1,033 105.1 59 1,085 105.8 ABS (27) 2,499 98.9 (32) 2,327 98.6 (16) 2,711 99.4 RMBS 68 875 108.4 90 947 110.5 98 1,011 110.7 CMBS 20 447 104.7 28 466 106.4 32 542 106.3 Redeemable preferred stock 3 24 114.3 3 25 113.6 4 25 119.0 Total fixed income securities 1,664 57,291 103.0 747 57,948 101.3 1,339 58,257 102.4 Equity securities 325 5,117 106.8 276 5,082 105.7 113 4,236 102.7 Short-term investments - 3,526 100.0 - 2,122 100.0 - 3,036 100.0 Derivatives 4 58 n/a 6 53 n/a 7 29 n/a EMA limited partnership interests (2) (5) n/a n/a (4) n/a n/a (5) n/a n/a Unrealized net capital gains and losses, pre-tax 1,988 1,025 1,454 Amounts recognized for: Insurance reserves (3) - - - DAC and DSI (4) (138) (67) (98) Amounts recognized (138) (67) (98) Deferred income taxes (650) (338) (477) Unrealized net capital gains and losses, after-tax $ 1,200 $ 620 $ 879 (1) (2) (3) (4) THE ALLSTATE CORPORATION UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE ($ in millions) December 31, 2016 September 30, 2016 June 30, 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. March 31, 2016 December 31, 2015 September 30, 2015

58 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 NET INVESTMENT INCOME Fixed income securities $ 514 $ 508 $ 520 $ 518 $ 537 $ 546 $ 567 $ 568 $ 2,060 $ 2,218 Equity securities 34 31 44 28 33 23 31 23 137 110 Mortgage loans 55 56 53 53 63 53 57 55 217 228 Limited partnership interests 178 136 126 121 66 167 118 198 561 549 Short-term 5 4 3 4 1 4 3 1 16 9 Other 59 55 57 51 49 49 49 45 222 192 Subtotal 845 790 803 775 749 842 825 890 3,213 3,306 Less: Investment expense (44) (42) (41) (44) (39) (35) (36) (40) (171) (150) Net investment income $ 801 $ 748 $ 762 $ 731 $ 710 $ 807 $ 789 $ 850 $ 3,042 $ 3,156 PRE-TAX YIELDS (1) Fixed income securities 3.6 % 3.6 % 3.7 % 3.7 % 3.8 % 3.8 % 3.9 % 3.9 % 3.6 % 3.8 % Equity securities 2.7 2.5 3.7 2.3 2.9 2.4 3.4 2.5 2.8 2.7 Mortgage loans 5.0 5.0 4.9 4.9 5.8 4.8 5.3 5.2 4.9 5.3 Limited partnership interests 12.5 9.9 9.6 9.7 5.4 14.4 10.1 17.2 10.5 11.7 Total portfolio 4.2 4.0 4.1 4.0 3.9 4.4 4.3 4.6 4.1 4.3 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (49) $ (63) $ (63) $ (59) $ (118) $ (47) $ (11) $ (19) $ (234) $ (195) Change in intent write-downs (21) (10) (16) (22) (32) (127) (32) (30) (69) (221) Net other-than-temporary impairment losses recognized in earnings (70) (73) (79) (81) (150) (174) (43) (49) (303) (416) Sales and other 47 121 104 (59) (75) 183 146 216 213 470 Valuation and settlements of derivative instruments 25 (15) (1) (9) (25) 24 5 (28) - (24) Total $ 2 $ 33 $ 24 $ (149) $ (250) $ 33 $ 108 $ 139 $ (90) $ 30 TOTAL RETURN ON INVESTMENT PORTFOLIO (2) (0.7) % 1.3 % 1.9 % 2.0 % (0.2) % - % (0.6) % 1.7 % 4.4 % 1.0 % AVERAGE INVESTMENT BALANCES (in billions) (3) $ 79.1 $ 77.5 $ 76.9 $ 76.8 $ 76.8 $ 76.9 $ 76.8 $ 77.4 $ 77.7 $ 77.0 (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) Twelve months endedThree months ended

59 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 NET INVESTMENT INCOME Fixed income securities: Tax-exempt $ 23 $ 23 $ 23 $ 23 $ 27 $ 24 $ 26 $ 25 $ 92 $ 102 Taxable 200 192 198 200 201 197 195 190 790 783 Equity securities 24 21 30 20 24 16 23 18 95 81 Mortgage loans 3 3 3 3 4 4 3 4 12 15 Limited partnership interests 82 69 60 58 29 62 45 126 269 262 Short-term 3 3 1 2 - 3 1 1 9 5 Other 24 22 23 20 18 20 20 17 89 75 Subtotal 359 333 338 326 303 326 313 381 1,356 1,323 Less: Investment expense (21) (23) (22) (24) (23) (19) (21) (23) (90) (86) Net investment income $ 338 $ 310 $ 316 $ 302 $ 280 $ 307 $ 292 $ 358 $ 1,266 $ 1,237 Net investment income, after-tax $ 231 $ 211 $ 215 $ 206 $ 192 $ 209 $ 199 $ 242 $ 863 $ 842 PRE-TAX YIELDS (1) Fixed income securities: Tax-exempt 2.0 % 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 2.9 3.1 3.1 3.8 3.4 3.4 3.5 3.1 3.5 Taxable 3.1 3.0 3.2 3.2 3.2 3.2 3.1 2.9 3.1 3.1 Equity securities 2.8 2.6 3.6 2.4 3.1 2.5 3.4 2.6 2.8 2.9 Mortgage loans 3.9 3.7 3.9 4.0 5.4 4.0 4.1 4.5 3.9 4.5 Limited partnership interests 11.0 9.6 8.6 8.9 4.5 10.1 7.0 19.9 9.6 10.4 Total portfolio 3.4 3.3 3.5 3.3 3.1 3.5 3.3 4.0 3.4 3.4 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities: Tax-exempt $ (9) $ 8 $ 4 $ 3 $ (10) $ 2 $ 1 $ 2 $ 6 $ (5) Taxable (17) 9 20 (47) (75) (42) 13 10 (35) (94) Equity securities 49 42 15 (60) (13) (92) 32 46 46 (27) Limited partnership interests (29) 13 (10) 13 (27) (35) (1) 2 (13) (61) Derivatives and other 20 (19) (3) (8) (28) 6 4 (32) (10) (50) Total $ 14 $ 53 $ 26 $ (99) $ (153) $ (161) $ 49 $ 28 $ (6) $ (237) REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (27) $ (26) $ (42) $ (35) $ (84) $ (30) $ (6) $ (12) $ (130) $ (132) Change in intent write-downs (17) (8) (12) (19) (24) (77) (28) (27) (56) (156) Net other-than-temporary impairment losses recognized in earnings (44) (34) (54) (54) (108) (107) (34) (39) (186) (288) Sales and other 43 101 82 (41) (28) (63) 77 99 185 85 Valuation and settlements of derivative instruments 15 (14) (2) (4) (17) 9 6 (32) (5) (34) Total $ 14 $ 53 $ 26 $ (99) $ (153) $ (161) $ 49 $ 28 $ (6) $ (237) AVERAGE INVESTMENT BALANCES (in billions) (2) $ 41.1 $ 39.5 $ 38.5 $ 38.3 $ 38.2 $ 37.8 $ 37.6 $ 37.9 $ 39.6 $ 38.0 (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) Twelve months endedThree months ended

60 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 NET INVESTMENT INCOME Fixed income securities $ 280 $ 282 $ 288 $ 284 $ 300 $ 314 $ 338 $ 344 $ 1,134 $ 1,296 Equity securities 10 10 14 8 9 7 8 5 42 29 Mortgage loans 52 53 50 50 59 49 54 51 205 213 Limited partnership interests 96 67 66 63 37 105 73 72 292 287 Short-term 2 1 1 2 1 1 1 - 6 3 Other 34 32 33 30 30 29 28 27 129 114 Subtotal 474 445 452 437 436 505 502 499 1,808 1,942 Less: Investment expense (21) (18) (17) (18) (16) (14) (13) (15) (74) (58) Net investment income $ 453 $ 427 $ 435 $ 419 $ 420 $ 491 $ 489 $ 484 $ 1,734 $ 1,884 Net investment income, after-tax $ 294 $ 278 $ 282 $ 273 $ 273 $ 319 $ 318 $ 315 $ 1,127 $ 1,225 PRE-TAX YIELDS (1) Fixed income securities 4.6 % 4.6 % 4.7 % 4.6 % 4.8 % 4.9 % 5.1 % 5.2 % 4.6 % 5.0 % Equity securities 2.6 2.5 3.9 2.1 2.4 2.1 3.4 2.1 2.8 2.4 Mortgage loans 5.0 5.1 4.9 4.9 5.8 4.9 5.5 5.2 5.0 5.4 Limited partnership interests 14.1 10.2 10.7 10.7 6.5 19.4 14.0 13.8 11.5 13.3 Total portfolio 5.3 4.9 5.0 4.8 4.8 5.6 5.6 5.5 5.0 5.4 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities $ (16) $ (19) $ (1) $ (26) $ (64) $ 261 $ 46 $ 68 $ (62) $ 311 Equity securities 8 3 (4) (30) (13) (58) 16 32 (23) (23) Mortgage loans (1) - 1 - 4 1 1 - - 6 Limited partnership interests (17) (1) - 13 (14) (20) (2) 4 (5) (32) Derivatives and other 15 (4) 4 (6) (10) 10 (2) 7 9 5 Total $ (11) $ (21) $ - $ (49) $ (97) $ 194 $ 59 $ 111 $ (81) $ 267 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (22) $ (37) $ (18) $ (24) $ (34) $ (17) $ (5) $ (7) $ (101) $ (63) Change in intent write-downs (4) (2) (4) (3) (8) (50) (4) (3) (13) (65) Net other-than-temporary impairment losses recognized in earnings (26) (39) (22) (27) (42) (67) (9) (10) (114) (128) Sales and other 5 19 21 (17) (47) 246 69 117 28 385 Valuation and settlements of derivative instruments 10 (1) 1 (5) (8) 15 (1) 4 5 10 Total $ (11) $ (21) $ - $ (49) $ (97) $ 194 $ 59 $ 111 $ (81) $ 267 AVERAGE INVESTMENT BALANCES (in billions) (2) $ 35.6 $ 35.7 $ 35.9 $ 35.9 $ 36.0 $ 36.1 $ 36.1 $ 36.3 $ 35.8 $ 36.1 (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) Twelve 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.

61 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Consolidated investment portfolio Interest-bearing (1) $ 69,801 $ 69,709 $ 68,519 $ 68,163 $ 67,390 $ 68,913 $ 70,243 $ 71,287 $ 69,801 $ 67,390 Equity/owned (2) 11,998 11,395 11,175 10,714 10,368 9,429 8,898 9,150 11,998 10,368 Total $ 81,799 $ 81,104 $ 79,694 $ 78,877 $ 77,758 $ 78,342 $ 79,141 $ 80,437 $ 81,799 $ 77,758 Consolidated portfolio total return (3) Interest-bearing (1.0) % 0.9 % 1.7 % 1.9 % (0.3) % 0.4 % (0.8) % 1.4 % 3.5 % 0.8 % Equity/owned 0.3 0.4 0.2 0.2 0.2 (0.3) 0.2 0.4 1.1 0.4 Investment expenses - - - (0.1) (0.1) (0.1) - (0.1) (0.2) (0.2) Total (0.7) 1.3 1.9 2.0 (0.2) - (0.6) 1.7 4.4 1.0 Consolidated portfolio total return (3) Income 1.0 % 0.9 % 1.0 % 0.9 % 0.9 % 1.0 % 1.0 % 1.0 % 3.8 % 3.9 % Valuation (1.7) 0.4 0.9 1.1 (1.1) (1.0) (1.6) 0.7 0.6 (2.9) Total (0.7) 1.3 1.9 2.0 (0.2) - (0.6) 1.7 4.4 1.0 Consolidated net investment income Interest-bearing $ 622 $ 613 $ 623 $ 618 $ 643 $ 646 $ 670 $ 664 $ 2,476 $ 2,623 Equity/owned 223 177 180 157 106 196 155 226 737 683 Investment expenses (44) (42) (41) (44) (39) (35) (36) (40) (171) (150) Total $ 801 $ 748 $ 762 $ 731 $ 710 $ 807 $ 789 $ 850 $ 3,042 $ 3,156 Consolidated Interest-bearing pre-tax yield (4) 3.7 % 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 $ 240 $ 235 $ 236 $ 241 $ 240 $ 240 $ 233 $ 226 $ 952 $ 939 Prepayment premiums 6 3 5 2 5 4 7 7 16 23 Total Interest-bearing 246 238 241 243 245 244 240 233 968 962 Equity/owned 113 95 97 83 58 82 73 148 388 361 Less: Investment expenses (21) (23) (22) (24) (23) (19) (21) (23) (90) (86) Total 338 310 316 302 280 307 292 358 1,266 1,237 Less: prepayment premiums (6) (3) (5) (2) (5) (4) (7) (7) (16) (23) Total excluding prepayment premiums $ 332 $ 307 $ 311 $ 300 $ 275 $ 303 $ 285 $ 351 $ 1,250 $ 1,214 Property-Liability interest-bearing pre-tax yield 2.9 % 2.9 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 2.9 % 2.9 % 3.0 % Property-Liability interest-bearing pre-tax yield excluding prepayment premiums 2.8 % 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 $ 359 $ 354 $ 357 $ 361 $ 371 $ 386 $ 408 $ 413 $ 1,431 $ 1,578 Prepayment premiums 5 9 12 2 17 5 12 8 28 42 Total interest-bearing 364 363 369 363 388 391 420 421 1,459 1,620 Equity/owned 110 82 83 74 48 114 82 78 349 322 Less: Investment expenses (21) (18) (17) (18) (16) (14) (13) (15) (74) (58) Total 453 427 435 419 420 491 489 484 1,734 1,884 Less: prepayment premiums (5) (9) (12) (2) (17) (5) (12) (8) (28) (42) Total excluding prepayment premiums $ 448 $ 418 $ 423 $ 417 $ 403 $ 486 $ 477 $ 476 $ 1,706 $ 1,842 Allstate Financial interest-bearing pre-tax yield 4.7 % 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 4.6 % 4.5 % 4.5 % 4.5 % 4.6 % 4.7 % 4.9 % 5.0 % 4.5 % 4.8 % (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) Twelve months endedThree months ended

62 December 31, 2016 Total Market-Based Core (1) Market-Based Active (2) Performance- Based Long-Term (3) Performance- Based Opportunistic (4) Fixed income securities $ 57,839 $ 50,527 $ 7,246 $ 66 $ - Equity securities 5,666 4,221 1,346 99 - Mortgage loans 4,486 4,486 - - - Limited partnership interests 5,814 502 - 5,292 20 Short-term investments 4,288 3,475 813 - - Other 3,706 3,014 160 532 - Total $ 81,799 $ 66,225 $ 9,565 $ 5,989 $ 20 % of total 100 % 81 % 12 % 7 % - % Property-Liability $ 42,722 $ 31,216 $ 8,313 $ 3,181 $ 12 % of Property-Liability 100 % 73 % 20 % 7 % - % Allstate Financial $ 36,840 $ 32,772 $ 1,252 $ 2,808 $ 8 % of Allstate Financial 100 % 89 % 3 % 8 % - % Corporate & Other $ 2,237 $ 2,237 $ - $ - $ - % of Corporate & Other 100 % 100 % - % - % - % Unrealized net capital gains and losses $ 1,770 $ 1,685 $ 80 $ 5 $ - 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)

63 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2016 2016 2016 2016 2015 2015 2015 2015 Consolidated Market-Based Core $ 66,225 $ 66,148 $ 65,111 $ 64,722 $ 64,501 $ 65,288 $ 66,816 $ 68,621 Market-Based Active 9,565 9,106 8,843 8,714 8,129 7,936 7,468 6,889 Performance-Based Long-Term 5,989 5,820 5,658 5,354 5,049 4,990 4,655 4,771 Performance-Based Opportunistic 20 30 82 87 79 128 202 156 Total $ 81,799 $ 81,104 $ 79,694 $ 78,877 $ 77,758 $ 78,342 $ 79,141 $ 80,437 Property-Liability Market-Based Core $ 31,216 $ 30,015 $ 28,826 $ 28,121 $ 28,525 $ 28,087 $ 28,547 $ 29,450 Market-Based Active 8,313 7,929 7,774 7,668 7,137 7,286 6,827 6,218 Performance-Based Long-Term 3,181 3,093 3,034 2,889 2,764 2,755 2,638 2,710 Performance-Based Opportunistic 12 20 55 58 53 85 135 104 Total $ 42,722 $ 41,057 $ 39,689 $ 38,736 $ 38,479 $ 38,213 $ 38,147 $ 38,482 Allstate Financial Market-Based Core (1) $ 32,772 $ 33,602 $ 34,040 $ 33,796 $ 33,490 $ 34,342 $ 35,073 $ 36,006 Market-Based Active (1) 1,252 1,177 1,069 1,046 992 650 641 671 Performance-Based Long-Term 2,808 2,727 2,624 2,465 2,284 2,235 2,017 2,061 Performance-Based Opportunistic 8 10 27 29 26 42 67 52 Total $ 36,840 $ 37,516 $ 37,760 $ 37,336 $ 36,792 $ 37,269 $ 37,798 $ 38,790 (1) Equity securities included in Market-Based Core and Market-Based Active amounts above $ 1,542 $ 1,637 $ 1,600 $ 1,369 $ 1,552 $ 1,362 $ 906 $ 1,027 THE ALLSTATE CORPORATION INVESTMENT POSITION BY STRATEGY AND SEGMENT ($ in millions)

64 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Investment income Consolidated Market-Based Core $ 587 $ 577 $ 595 $ 581 $ 614 $ 612 $ 640 $ 629 $ 2,340 $ 2,495 Market-Based Active 68 66 67 61 59 52 52 50 262 213 Performance-Based Long-Term ("PBLT") (1) 190 147 138 131 74 176 130 209 606 589 Performance-Based Opportunistic - - 3 2 2 2 3 2 5 9 Investment income, before expense 845 790 803 775 749 842 825 890 3,213 3,306 Investment expense (44) (42) (41) (44) (39) (35) (36) (40) (171) (150) Net investment income $ 801 $ 748 $ 762 $ 731 $ 710 $ 807 $ 789 $ 850 $ 3,042 $ 3,156 PBLT Asset level operating expense (2) $ (8) $ (8) $ (8) $ (8) $ (4) $ (4) $ (5) $ (6) $ (32) $ (19) Property-Liability Market-Based Core $ 211 $ 200 $ 211 $ 206 $ 215 $ 208 $ 210 $ 200 $ 828 $ 833 Market-Based Active 59 57 58 54 52 47 46 45 228 190 Performance-Based Long-Term 89 76 67 65 35 69 55 135 297 294 Performance-Based Opportunistic - - 2 1 1 2 2 1 3 6 Investment income, before expense 359 333 338 326 303 326 313 381 1,356 1,323 Investment expense (21) (23) (22) (24) (23) (19) (21) (23) (90) (86) Net investment income $ 338 $ 310 $ 316 $ 302 $ 280 $ 307 $ 292 $ 358 $ 1,266 $ 1,237 PBLT Asset level operating expense (2) $ (4) $ (4) $ (3) $ (4) $ (2) $ (3) $ (4) $ (5) $ (15) $ (14) Allstate Financial ("AF") Market-Based Core $ 364 $ 365 $ 371 $ 363 $ 389 $ 393 $ 420 $ 419 $ 1,463 $ 1,621 Market-Based Active 9 9 9 7 7 5 6 5 34 23 Performance-Based Long-Term 101 71 71 66 39 107 75 74 309 295 Performance-Based Opportunistic - - 1 1 1 - 1 1 2 3 Investment income, before expense 474 445 452 437 436 505 502 499 1,808 1,942 Investment expense (21) (18) (17) (18) (16) (14) (13) (15) (74) (58) Net investment income $ 453 $ 427 $ 435 $ 419 $ 420 $ 491 $ 489 $ 484 $ 1,734 $ 1,884 PBLT Asset level operating expense (2) $ (4) $ (4) $ (5) $ (4) $ (2) $ (1) $ (1) $ (1) $ (17) $ (5) AF Performance-Based Pre-Tax Yield (3) 13.8 % 10.0 % 10.4 % 10.4 % 6.7 % 19.5 % 14.5 % 14.3 % 11.3 % 13.8 % Realized capital gains and losses Consolidated Market-Based Core $ 13 $ 23 $ 13 $ (91) $ (153) $ 102 $ 63 $ 58 $ (42) $ 70 Market-Based Active (4) 33 39 (47) (49) (63) 48 73 21 9 Performance-Based Long-Term (10) (28) (27) (11) (49) - (5) 8 (76) (46) Performance-Based Opportunistic 3 5 (1) - 1 (6) 2 - 7 (3) Total $ 2 $ 33 $ 24 $ (149) $ (250) $ 33 $ 108 $ 139 $ (90) $ 30 Property-Liability Market-Based Core $ 23 $ 31 $ 12 $ (49) $ (94) $ (101) $ 5 $ (42) $ 17 $ (232) Market-Based Active (4) 30 34 (42) (29) (52) 45 66 18 30 Performance-Based Long-Term (7) (12) (19) (8) (31) (4) (3) 4 (46) (34) Performance-Based Opportunistic 2 4 (1) - 1 (4) 2 - 5 (1) Total $ 14 $ 53 $ 26 $ (99) $ (153) $ (161) $ 49 $ 28 $ (6) $ (237) Allstate Financial Market-Based Core $ (9) $ (9) $ 3 $ (41) $ (59) $ 203 $ 58 $ 100 $ (56) $ 302 Market-Based Active - 3 5 (5) (20) (11) 3 7 3 (21) Performance-Based Long-Term (3) (16) (8) (3) (18) 4 (2) 4 (30) (12) Performance-Based Opportunistic 1 1 - - - (2) - - 2 (2) Total $ (11) $ (21) $ - $ (49) $ (97) $ 194 $ 59 $ 111 $ (81) $ 267 (1) (2) (3) Quarterly pre-tax yield is calculated as annualized quarterly performance-based 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 performance-based investment balances. Year-to-date pre-tax yield is calculated as annualized year-to-date performance-based investment income, generally before investment expense (including dividend income in the case of equity securities) divided by the average of performance-based 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. We continue to shift the portfolio mix to include more performance-based investments. A greater proportion of the return on these investments is derived from idiosyncratic asset or operating performance. While we anticipate higher returns on these investments over time, the investment income can vary significantly between periods. 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 AND SEGMENT ($ in millions) Twelve months endedThree months ended

65 Total Market- Based Core Market- Based Active Performance- Based Long-Term Performance- Based Opportunistic Three months ended December 31, 2016 Investment income Fixed income securities $ 514 $ 455 $ 58 $ 1 $ - Equity securities 34 29 5 - - Mortgage loans 55 55 - - - Limited partnership interests 178 (1) - 179 - Short-term investments 5 4 1 - - Other 59 45 4 10 - Investment income, before expense 845 $ 587 $ 68 $ 190 $ - Investment expense (44) Net investment income $ 801 Realized capital gains and losses Fixed income securities $ (43) $ (21) $ (26) $ 1 $ 3 Equity securities 57 46 11 - - Mortgage loans (1) (1) - - - Limited partnership interests (46) (22) - (24) - Short-term investments - - - - - Other 35 11 11 13 - Total $ 2 $ 13 $ (4) $ (10) $ 3 Twelve months ended December 31, 2016 Investment income Fixed income securities $ 2,060 $ 1,829 $ 223 $ 4 $ 4 Equity securities 137 114 23 - - Mortgage loans 217 217 - - - Limited partnership interests 561 - - 561 - Short-term investments 16 12 4 - - Other 222 168 12 41 1 Investment income, before expense 3,213 $ 2,340 $ 262 $ 606 $ 5 Investment expense (171) Net investment income $ 3,042 Realized capital gains and losses Fixed income securities $ (91) $ (115) $ 20 $ 1 $ 3 Equity securities 23 44 12 (35) 2 Mortgage loans - - - - - Limited partnership interests (21) 31 - (52) - Short-term investments - - - - - Other (1) (2) (11) 10 2 Total $ (90) $ (42) $ 21 $ (76) $ 7 THE ALLSTATE CORPORATION INVESTMENT INCOME AND REALIZED CAPITAL GAINS AND LOSSES BY INVESTMENT TYPE AND STRATEGY ($ in millions)

66 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, 2016 2016 2016 2016 2015 2015 2015 2015 2016 2015 Investment position Limited partnerships Private equity (1) $ 4,011 $ 3,836 $ 3,663 $ 3,324 $ 3,181 $ 3,131 $ 3,012 $ 2,969 $ 4,011 $ 3,181 Real estate (2) 1,102 1,130 1,204 1,229 1,166 1,160 1,164 1,366 1,102 1,166 Timber & agriculture-related (3) 179 171 170 170 163 151 - - 179 163 PBLT - limited partnerships 5,292 5,137 5,037 4,723 4,510 4,442 4,176 4,335 5,292 4,510 Other (4) Private equity 151 138 97 103 71 93 70 67 151 71 Real estate 380 380 358 361 301 288 242 201 380 301 Timber & agriculture-related 166 165 166 167 167 167 167 168 166 167 PBLT - other 697 683 621 631 539 548 479 436 697 539 Total Private equity 4,162 3,974 3,760 3,427 3,252 3,224 3,082 3,036 4,162 3,252 Real estate 1,482 1,510 1,562 1,590 1,467 1,448 1,406 1,567 1,482 1,467 Timber & agriculture-related 345 336 336 337 330 318 167 168 345 330 Total PBLT $ 5,989 $ 5,820 $ 5,658 $ 5,354 $ 5,049 $ 4,990 $ 4,655 $ 4,771 $ 5,989 $ 5,049 Investment income Limited partnerships Private equity $ 145 $ 112 $ 113 $ 85 $ 47 $ 162 $ 113 $ 80 $ 455 $ 402 Real estate 35 23 12 33 20 5 10 123 103 158 Timber & agriculture-related (1) - 1 3 (1) - - - 3 (1) PBLT - limited partnerships 179 135 126 121 66 167 123 203 561 559 Other Private equity 1 2 1 - - 1 - - 4 1 Real estate 9 8 8 8 6 7 5 4 33 22 Timber & agriculture-related 1 2 3 2 2 1 2 2 8 7 PBLT - other 11 12 12 10 8 9 7 6 45 30 Total Private equity 146 114 114 85 47 163 113 80 459 403 Real estate 44 31 20 41 26 12 15 127 136 180 Timber & agriculture-related - 2 4 5 1 1 2 2 11 6 Total PBLT $ 190 $ 147 $ 138 $ 131 $ 74 $ 176 $ 130 $ 209 $ 606 $ 589 Asset level operating expense (5) $ (8) $ (8) $ (8) $ (8) $ (4) $ (4) $ (5) $ (6) $ (32) $ (19) Realized capital gains and losses Limited partnerships Private equity $ (26) $ (23) $ (20) $ 12 $ (49) $ (3) $ (3) $ 9 $ (57) $ (46) Real estate 2 2 - 1 - (2) - (2) 5 (4) Timber & agriculture-related - - - - - - - - - - PBLT - limited partnerships (24) (21) (20) 13 (49) (5) (3) 7 (52) (50) Other Private equity 13 (7) (7) (25) 1 6 (1) - (26) 6 Real estate 1 - - 1 (1) (1) (1) - 2 (3) Timber & agriculture-related - - - - - - - 1 - 1 PBLT - other 14 (7) (7) (24) - 5 (2) 1 (24) 4 Total Private equity (13) (30) (27) (13) (48) 3 (4) 9 (83) (40) Real estate 3 2 - 2 (1) (3) (1) (2) 7 (7) Timber & agriculture-related - - - - - - - 1 - 1 Total PBLT $ (10) $ (28) $ (27) $ (11) $ (49) $ - $ (5) $ 8 $ (76) $ (46) Pre-Tax Yield (6) 12.3 % 9.7 % 9.4 % 9.4 % 5.6 % 14.3 % 10.6 % 17.5 % 10.3 % 11.9 % 10 Year Internal Rate of Return (7) 10.1 % 10.1 % 10.2 % 10.5 % 10.8 % 11.3 % 11.3 % 11.4 % (1) (2) (3) (4) (5) (6) (7) 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 62. Includes Timber and agriculture-related reflected in Private equity on page 56. 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. 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. Includes Real estate on page 56. Includes Private equity on page 56, excluding Timber and agriculture-related. THE ALLSTATE CORPORATION PERFORMANCE-BASED LONG-TERM INVESTMENTS ($ in millions) As of or for the three months ended As of or for the twelve months ended

67 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. 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". 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". 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.