SEC Filing | The Allstate Corporation

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): November 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).



		Emerging growth company	____

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition.

The Registrant’s press release dated November 1, 2017, announcing its financial results for the third quarter of 2017, and the Registrant’s third quarter 2017 investor supplement are furnished as Exhibits 99.1 and 99.2, respectively, to this report. The information contained in the press release and the investor supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.

Section 9 – Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Registrant’s press release dated November 1, 2017

99.2 Third quarter 2017 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/ Eric K. Ferren
	Name: Eric K. Ferren
	Title: Senior Vice President, Controller and Chief Accounting Officer

Date: November 1, 2017

Exhibit

Exhibit 99.1

https://cdn.kscope.io/84750fb29464295d0555dbd3b55787f2-earningsreleaseimagea09.jpg

FOR IMMEDIATE RELEASE

Contacts:

Greg Burns John Griek

Media Relations Investor Relations

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

Allstate’s Auto Insurance Profitability Plan Well Executed

Strong profitability mitigates catastrophe losses

NORTHBROOK, Ill., November 1, 2017 – The Allstate Corporation (NYSE: ALL) today reported financial results for the third quarter of 2017.



The Allstate Corporation Consolidated Highlights
	Three months ended September 30,						Nine months ended September 30,
($ in millions, except per share data and ratios)	2017		2016		% / pts Change		2017			2016			% / pts Change
Consolidated revenues	$	9,660	$	9,221	4.8		$	28,681		$	27,256		5.2
Net income applicable to common shareholders	637		491		29.7		1,853			950			95.1
per diluted common share	1.74		1.31		32.8		5.02			2.51			100.0
Operating income*	587		474		23.8		1,705			1,031			65.4
per diluted common share*	1.60		1.26		27.0		4.62			2.72			69.9
Return on common shareholders’ equity (trailing twelve months)
Net income applicable to common shareholders							13.5		%	7.4		%	6.1
Operating income*							13.9		%	9.4		%	4.5
Book value per common share							55.69			51.48			8.2
Property-Liability combined ratio
Recorded	94.7		95.5		(0.8	)	95.2			98.2			(3.0	)
Underlying combined ratio* (excludes catastrophes, prior year reserve reestimates and amortization of purchased intangibles)	85.4		88.0		(2.6	)	85.2			88.0			(2.8	)
Catastrophe losses	861		481		79.0		2,635			2,269			16.1
Total policies in force (in thousands)							77,641			43,960			76.6


*	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 focus on achieving balanced operating performance resulted in continued progress on 2017’s operating priorities, including returning auto insurance margins to historical levels,” said Tom Wilson, chairman and chief executive officer of The Allstate Corporation. “Net income was $637 million and operating income* was $587 million, or $1.60 per share, in the third quarter of 2017. Improved profitability in auto insurance reflects the profit improvement actions begun in 2015 and a significant broad-based decrease in the frequency of auto accidents. Allstate brand homeowners insurance also generated strong profitability, with a recorded combined ratio of 90.7 for the first nine months of 2017, despite $1.6 billion of catastrophe losses. Investment income increased in both the market-based and performance-based portfolios. As a result, Allstate Financial operating income rose to $157 million in the quarter. Operating income return on equity* increased to 13.9% for the twelve months ended September 30, 2017.

“We continued to deliver on all five 2017 operating priorities, which focus on both near-term performance and long-term value creation. Better serving customers remains a top growth priority, and the net promoter score measure has improved in many of our businesses this year. Total policies in force increased to 78 million through the third quarter, largely due to growth at SquareTrade and Allstate Benefits that was partially offset by reductions in the

property-liability businesses. Improvements in Allstate brand auto insurance retention and new issued applications mitigated some of the impacts from the profit improvement programs across the three underwritten property-liability brands. Progress was also made on building long-term growth platforms, including expanding Arity’s connected car strategy,” concluded Wilson.

Operating Results: Third Quarter 2017


•	Total revenue of $9.7 billion in the third quarter of 2017 increased 4.8% compared to the prior year quarter.


◦	Property-Liability insurance premiums increased 3.2%


◦	Allstate Financial premiums and contract charges increased 3.9%


◦	Net investment income increased 12.7%


◦	Realized capital gains were $103 million compared to $33 million in the prior year quarter


•	Net income applicable to common shareholders was $637 million, or $1.74 per diluted share, in the third quarter of 2017, compared to $491 million, or $1.31 per diluted share, in the third quarter of 2016. Operating income* was $587 million in the third quarter of 2017, compared to $474 million in the third quarter of 2016.


•	Property-Liability underwriting income of $429 million was $74 million above the prior year quarter, due to higher premiums, a broad-based decline in the frequency of auto accidents and favorable prior year reserve releases. These improvements were partially offset by elevated catastrophe losses related to Hurricanes Harvey and Irma.


◦	The underlying combined ratios* of 85.4 for the third quarter and 85.2 for the first nine months of 2017 were significantly lower than the prior year periods, reflecting improvement in the auto underlying combined ratio across all three underwritten brands. The full year result for 2017 is expected to be below the lower end of the annual outlook range of 87-89⁽¹⁾.


◦	Non-catastrophe prior year reserve releases of $128 million in the third quarter of 2017 included Allstate Protection releases of $216 million, primarily driven by Allstate brand auto injury coverages. This was partially offset by strengthening of $88 million in the Discontinued Lines and Coverages segment, primarily due to our annual asbestos and environmental reserve review.



Property-Liability Results
	Three months ended September 30,				Nine months ended September 30,
(% to earned premiums)	2017	2016	pts Change		2017	2016	pts Change
Recorded Combined Ratio	94.7	95.5	(0.8	)	95.2	98.2	(3.0	)
Allstate Brand Auto	94.9	99.0	(4.1	)	93.8	99.7	(5.9	)
Allstate Brand Homeowners	81.3	75.9	5.4		90.7	88.7	2.0
Allstate Brand Other Personal Lines	104.3	87.5	16.8		96.1	90.4	5.7
Esurance	104.4	109.8	(5.4	)	104.3	108.3	(4.0	)
Encompass	89.2	98.3	(9.1	)	101.9	103.1	(1.2	)
Underlying Combined Ratio*	85.4	88.0	(2.6	)	85.2	88.0	(2.8	)
Allstate Brand Auto	91.2	95.9	(4.7	)	91.6	96.5	(4.9	)
Allstate Brand Homeowners	61.2	61.1	0.1		60.7	59.7	1.0
Allstate Brand Other Personal Lines	87.9	82.0	5.9		81.3	79.1	2.2
Esurance	100.5	106.0	(5.5	)	100.4	105.3	(4.9	)
Encompass	85.5	89.3	(3.8	)	86.6	90.1	(3.5	)

_________

⁽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.

◦

Allstate brand auto net written premium grew 3.2% in the third quarter of 2017, reflecting a 4.5% increase in average premium compared to the prior year quarter, which was partially offset by a 1.7% decline in policies in force. The recorded combined ratio of 94.9 in the third quarter of 2017 was 4.1 points better than the prior year quarter and was favorably impacted by a broad-based decline in accident frequency as well as increased premiums earned and higher favorable prior year reserve reestimates, partially offset by higher catastrophe losses. The underlying combined ratio* in the third quarter of 2017 was 4.7 points better than the third quarter of 2016.

New issued applications grew 11.5% in the third quarter of 2017 over the prior year quarter as the number of states implementing growth plans was expanded. In the third quarter, 41 states, including all of our 10 largest states, experienced increases in new issued applications compared to the prior year quarter. The renewal ratio of 87.7 was an improvement of 0.2 points from the prior year quarter.

◦

Allstate brand homeowners net written premium increased 2.8% in the third quarter of 2017 compared to the prior year quarter, reflecting a 1.9% increase in average premium. The recorded combined ratios of 81.3 in the third quarter of 2017 and 90.7 through the first nine months of 2017 generated $319 million and $473 million of pre-tax underwriting income, respectively. The underlying combined ratio* of 61.2 in the third quarter of 2017 continued to reflect strong underlying profitability.

Policies in force declined 1.0% as the renewal ratio of 87.5 decreased by 0.4 points compared to the prior year quarter. New issued applications grew 5.3% in the third quarter over the prior year quarter as 6 of our 10 largest states experienced increases.

◦

Allstate brand other personal lines net written premium of $454 million increased 1.6% in the third quarter of 2017 compared to the prior year quarter. The recorded combined ratio of 104.3 was 16.8 points higher in the third quarter of 2017 compared to the prior year quarter, primarily due to higher catastrophe losses. The underlying combined ratio* was 87.9 in the third quarter of 2017, an increase of 5.9 points compared to the prior year quarter.

◦

Esurance net written premium growth of 1.6% compared to the prior year quarter reflects increased average premium in auto and homeowners insurance, partially offset by a slight decline in auto policies in force. The strategy to expand homeowners insurance continued to make progress, with policies increasing 46.2% from the prior year quarter and written premium of $60 million through the first nine months of 2017.

The recorded combined ratio of 104.4 was 5.4 points better in the third quarter of 2017 compared to the prior year quarter, driven by a lower expense ratio in auto and homeowners insurance. The underlying combined ratio* of 100.5 was 5.5 points better than the prior year quarter, with improvements in both auto and homeowners insurance. The auto insurance underlying combined ratio* of 99.8 in the third quarter of 2017 was 2.2 points below the prior year quarter.

◦

Encompass net written premium declined 9.4% and policies in force were 14.9% lower in the third quarter of 2017 compared to the prior year quarter, as profit improvement plans continued to be implemented. The recorded combined ratio of 89.2 in the third quarter of 2017 was 9.1 points better than the prior year quarter, driven by improved auto loss costs and lower catastrophes due to limited exposure in areas impacted by the hurricanes. The underlying combined ratio* of 85.5 was 3.8 points better than the prior year quarter, due to improvement in the underlying loss ratio, partially offset by a higher expense ratio.

◦

SquareTrade made progress on the key criteria underlying its acquisition of growing the U.S. retail business while raising margins. Total policies in force of 34.1 million increased by 2.8 million in the third quarter of 2017 as the existing U.S. retail business continued to expand. Net written premium was $104 million for the third quarter of 2017. Growth initiatives are also being pursued in Europe. The recorded underwriting loss was $29 million and the operating loss* was $4 million, which excludes the $15 million, after-tax, impact of the amortization of purchased intangible assets.


•	Allstate Financial net income was $168 million and operating income was $157 million in the third quarter of 2017. Operating income was $63 million higher than the prior year quarter, primarily due to increased investment income in Allstate Annuities and favorable mortality experience in Allstate Life.



Allstate Financial Results
	Three months ended September 30,					Nine months ended September 30,
($ in millions)	2017		2016		% Change	2017		2016		% Change
Premiums and Contract Charges	$	593	$	571	3.9	$	1,777	$	1,701	4.5
Allstate Life	316		310		1.9	956		932		2.6
Allstate Benefits	273		257		6.2	811		759		6.9
Allstate Annuities	4		4		—	10		10		—
Net Income	$	168	$	80	110.0	$	422	$	264	59.8
Allstate Life	73		43		69.8	190		161		18.0
Allstate Benefits	29		25		16.0	76		74		2.7
Allstate Annuities	66		12		450.0	156		29		437.9
Operating Income	$	157	$	94	67.0	$	420	$	318	32.1
Allstate Life	74		51		45.1	196		181		8.3
Allstate Benefits	28		25		12.0	75		77		(2.6	)
Allstate Annuities	55		18		205.6	149		60		148.3
Policies in Force (in thousands)						6,290		6,008		4.7
Allstate Life						2,019		2,019		—
Allstate Benefits						4,035		3,733		8.1
Allstate Annuities						236		256		(7.8	)


◦	Allstate Life net income was $73 million and operating income was $74 million in the third quarter of 2017. Operating income was $23 million higher than the prior year quarter, primarily due to favorable mortality experience and higher traditional life insurance premiums. Policies in force were flat in the third quarter of 2017 compared to the prior year quarter.


◦	Allstate Benefits net income was $29 million and operating income was $28 million in the third quarter of 2017. Operating income was $3 million higher than the prior year quarter, primarily due to increased premiums and contract charges, partially offset by higher contract benefits. Policies in force increased 8.1% in the third quarter of 2017 compared to the prior year quarter.

◦

Allstate Annuities net income was $66 million and operating income was $55 million in the third quarter of 2017. Operating income was $37 million higher than the prior year quarter, primarily due to higher performance-based net investment income, including appreciation of private equity investments, as well as lower contract benefits. Policies in force declined 7.8% in the third quarter of 2017 compared to the prior year quarter as the business continues to run off.


•	Allstate Investments $83 billion portfolio generated net investment income of $843 million, which was 12.7% above the prior year quarter.



Allstate Investment Results
	Three months ended September 30,								Nine months ended September 30,
($ in millions, except ratios)	2017			2016			% / pts Change		2017			2016			% / pts Change
Net investment income	$	843		$	748		12.7		$	2,488		$	2,241		11.0
Market-based net investment income⁽¹⁾	662			642			3.1		1,992			1,944			2.5
Performance-based net investment income⁽¹⁾	227			139			63.3		621			397			56.4
Realized capital gains and losses	103			33			212.1		318			(92		)	NM
Change in unrealized net capital gains, pre-tax	198			318			(37.7	)	977			1,990			(50.9	)
Total return on investment portfolio	1.5		%	1.3		%	0.2		4.9		%	5.2		%	(0.3	)

⁽¹⁾Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.

NM = not meaningful


◦	Market-based portfolio contributed stable earnings primarily from investment-grade fixed income securities. Market-based net investment income of $662 million in the third quarter of 2017 increased over the prior year quarter, reflecting higher invested assets and stable portfolio yields.


◦	Performance-based portfolio generated shareholder value by investing in assets with short-term volatility in valuation but higher long-term returns where liquidity needs are low. Performance-based net investment income rose to $227 million in the third quarter of 2017, a 63% increase, reflecting private equity appreciation, sales of underlying investments and growth in the portfolio.


◦	Net realized capital gains were $103 million in the third quarter of 2017, compared to $33 million in the prior year quarter, primarily comprised of net gains on sales, partially offset by write-downs of $28 million.


◦	Change in unrealized net capital gains of $198 million in the third quarter of 2017 was due to favorable equity market performance and a decrease in market yields, primarily resulting from tighter credit spreads.


◦	Total return on the investment portfolio includes approximately 1% per quarter from investment income as well as changes in the portfolio value between quarters. Total return was 1.5% for the third quarter and 4.9% for the first nine months of 2017, reflecting higher bond and equity valuations. The trailing twelve month total return was 4.1%.

Proactive Capital Management

“In addition to excellent operating results, Allstate continued to provide strong returns to our shareholders through dividends and stock repurchases during the third quarter,” said Steve Shebik, chief financial officer. “Our strong capital position enabled us to remain on track with our $2 billion stock repurchase program that was approved in August.

“A new reporting structure that will expand the reportable segments from four to seven will be initiated in the fourth quarter to enhance transparency around short-term results and long-term value creation. Allstate Protection results will continue to be reported by brand, but businesses that have a larger portion of earnings from services and a lower percentage of underwriting income will now be broken out in a new Service Businesses segment. Allstate Financial will be reported as three segments which have different growth and return characteristics: Life, Benefits and Annuities. Reporting for Discontinued Lines and Coverages and Corporate will remain unchanged.”

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, November 2.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting people from life’s uncertainties with 78 million proprietary policies. Allstate offers a broad array of protection products through multiple brands and diverse distribution channels, including auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brands. The company provides additional protection products and services through Allstate Benefits, Allstate Roadside Services, Allstate Dealer Services, Arity and SquareTrade. Allstate is widely known from the slogan “You’re In Good Hands With Allstate^®.” Allstate agencies are in virtually every local community in America. The Allstate Foundation, Allstate, its employees and agency owners have a proud history of caring for local communities.

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

Forward-Looking Statements

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



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Revenues
Property-liability insurance premiums	$	8,121		$	7,869		$	24,098		$	23,406
Life and annuity premiums and contract charges	593			571			1,777			1,701
Net investment income	843			748			2,488			2,241
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(26		)	(73		)	(135		)	(241		)
OTTI losses reclassified to (from) other comprehensive income	(2		)	—			(2		)	8
Net OTTI losses recognized in earnings	(28		)	(73		)	(137		)	(233		)
Sales and other realized capital gains and losses	131			106			455			141
Total realized capital gains and losses	103			33			318			(92		)
	9,660			9,221			28,681			27,256

Costs and expenses
Property-liability insurance claims and claims expense	5,545			5,553			16,650			17,138
Life and annuity contract benefits	456			484			1,416			1,393
Interest credited to contractholder funds	174			183			522			558
Amortization of deferred policy acquisition costs	1,200			1,138			3,545			3,393
Operating costs and expenses	1,218			1,021			3,401			3,043
Restructuring and related charges	14			5			77			21
Interest expense	83			73			251			218
	8,690			8,457			25,862			25,764

Gain on disposition of operations	1			1			15			4

Income from operations before income tax expense	971			765			2,834			1,496

Income tax expense	305			245			894			459

Net income	666			520			1,940			1,037

Preferred stock dividends	29			29			87			87

Net income applicable to common shareholders	$	637		$	491		$	1,853		$	950

Earnings per common share:

Net income applicable to common shareholders per common share – Basic	$	1.76		$	1.32		$	5.10		$	2.54

Weighted average common shares – Basic	361.3			371.5			363.5			374.4

Net income applicable to common shareholders per common share – Diluted	$	1.74		$	1.31		$	5.02		$	2.51

Weighted average common shares – Diluted	367.1			375.9			369.1			378.9

Cash dividends declared per common share	$	0.37		$	0.33		$	1.11		$	0.99



THE ALLSTATE CORPORATION
BUSINESS RESULTS
($ in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Property-Liability
Premiums written	$	8,583		$	8,311		$	24,595		$	23,877
Premiums earned	$	8,121		$	7,869		$	24,098		$	23,406
Claims and claims expense	(5,545		)	(5,553		)	(16,650		)	(17,138		)
Amortization of deferred policy acquisition costs	(1,138		)	(1,068		)	(3,331		)	(3,181		)
Operating costs and expenses	(996		)	(888		)	(2,879		)	(2,653		)
Restructuring and related charges	(13		)	(5		)	(75		)	(20		)
Underwriting income	429			355			1,163			414
Net investment income	372			310			1,074			928
Income tax expense on operations	(252		)	(218		)	(703		)	(429		)
Realized capital gains and losses, after-tax	54			36			199			(10		)
Gain on disposition of operations, after-tax	1			—			7			—
Net income applicable to common shareholders	$	604		$	483		$	1,740		$	903
Catastrophe losses	$	861		$	481		$	2,635		$	2,269
Amortization of purchased intangible assets	$	25		$	9		$	74		$	27
Operating ratios:
Claims and claims expense ratio	68.3			70.6			69.1			73.2
Expense ratio	26.4			24.9			26.1			25.0
Combined ratio	94.7			95.5			95.2			98.2
Effect of catastrophe losses on combined ratio	10.6			6.1			11.0			9.7
Effect of prior year reserve reestimates on combined ratio	(1.7		)	1.3			(1.3		)	0.5
Effect of catastrophe losses included in prior year reserve reestimates on combined ratio	(0.1		)	—			—			0.1
Effect of amortization of purchased intangible assets on combined ratio	0.3			0.1			0.3			0.1
Effect of Discontinued Lines and Coverages on combined ratio	1.1			1.3			0.4			0.4

Allstate Financial
Premiums and contract charges	$	593		$	571		$	1,777		$	1,701
Net investment income	461			427			1,383			1,281
Contract benefits	(456		)	(484		)	(1,416		)	(1,393		)
Interest credited to contractholder funds	(173		)	(183		)	(519		)	(546		)
Amortization of deferred policy acquisition costs	(58		)	(68		)	(202		)	(207		)
Operating costs and expenses	(130		)	(126		)	(395		)	(370		)
Restructuring and related charges	(1		)	—			(2		)	(1		)
Income tax expense on operations	(79		)	(43		)	(206		)	(147		)
Operating income	157			94			420			318
Realized capital gains and losses, after-tax	13			(14		)	9			(46		)
Valuation changes on embedded derivatives that are not hedged, after-tax	(1		)	—			(2		)	(8		)
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(2		)	(1		)	(8		)	(3		)
Gain on disposition of operations, after-tax	1			1			3			3
Net income applicable to common shareholders	$	168		$	80		$	422		$	264

Corporate and Other
Net investment income	$	10		$	11		$	31		$	32
Operating costs and expenses	(175		)	(80		)	(360		)	(238		)
Income tax benefit on operations	60			26			121			77
Preferred stock dividends	(29		)	(29		)	(87		)	(87		)
Operating loss	(134		)	(72		)	(295		)	(216		)
Realized capital gains and losses, after-tax	—			—			—			(1		)
Business combination expenses, after-tax	(1		)	—			(14		)	—
Net loss applicable to common shareholders	$	(135	)	$	(72	)	$	(309	)	$	(217	)

Consolidated net income applicable to common shareholders	$	637		$	491		$	1,853		$	950



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in millions, except par value data)	September 30, 2017			December 31, 2016
Assets	(unaudited)
Investments:
Fixed income securities, at fair value (amortized cost $57,608 and $56,576)	$	59,391		$	57,839
Equity securities, at fair value (cost $5,468 and $5,157)	6,434			5,666
Mortgage loans	4,322			4,486
Limited partnership interests	6,600			5,814
Short-term, at fair value (amortized cost $2,198 and $4,288)	2,198			4,288
Other	3,826			3,706
Total investments	82,771			81,799
Cash	690			436
Premium installment receivables, net	5,922			5,597
Deferred policy acquisition costs	4,147			3,954
Reinsurance recoverables, net	9,748			8,745
Accrued investment income	590			567
Property and equipment, net	1,067			1,065
Goodwill	2,309			1,219
Other assets	2,966			1,835
Separate Accounts	3,422			3,393
Total assets	$	113,632		$	108,610
Liabilities
Reserve for property-liability insurance claims and claims expense	$	27,154		$	25,250
Reserve for life-contingent contract benefits	12,227			12,239
Contractholder funds	19,650			20,260
Unearned premiums	13,535			12,583
Claim payments outstanding	959			879
Deferred income taxes	1,249			487
Other liabilities and accrued expenses	6,968			6,599
Long-term debt	6,349			6,347
Separate Accounts	3,422			3,393
Total liabilities	91,513			88,037
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, 360 million and 366 million shares outstanding	9			9
Additional capital paid-in	3,330			3,303
Retained income	42,125			40,678
Deferred ESOP expense	(6		)	(6		)
Treasury stock, at cost (540 million and 534 million shares)	(25,413		)	(24,741		)
Accumulated other comprehensive income:
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	68			57
Other unrealized net capital gains and losses	1,715			1,091
Unrealized adjustment to DAC, DSI and insurance reserves	(132		)	(95		)
Total unrealized net capital gains and losses	1,651			1,053
Unrealized foreign currency translation adjustments	(14		)	(50		)
Unrecognized pension and other postretirement benefit cost	(1,309		)	(1,419		)
Total accumulated other comprehensive income (loss)	328			(416		)
Total shareholders’ equity	22,119			20,573
Total liabilities and shareholders’ equity	$	113,632		$	108,610



THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)	Nine months ended September 30,
	2017			2016
Cash flows from operating activities	(unaudited)
Net income	$	1,940		$	1,037
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	358			285
Realized capital gains and losses	(318		)	92
Gain on disposition of operations	(15		)	(4		)
Interest credited to contractholder funds	522			558
Changes in:
Policy benefits and other insurance reserves	1,276			978
Unearned premiums	525			540
Deferred policy acquisition costs	(176		)	(159		)
Premium installment receivables, net	(267		)	(236		)
Reinsurance recoverables, net	(1,017		)	(420		)
Income taxes	119			30
Other operating assets and liabilities	267			41
Net cash provided by operating activities	3,214			2,742
Cash flows from investing activities
Proceeds from sales
Fixed income securities	19,508			19,132
Equity securities	5,179			4,069
Limited partnership interests	767			634
Other investments	170			206
Investment collections
Fixed income securities	3,038			3,430
Mortgage loans	477			403
Other investments	458			281
Investment purchases
Fixed income securities	(23,935		)	(22,282		)
Equity securities	(5,296		)	(4,113		)
Limited partnership interests	(1,082		)	(1,128		)
Mortgage loans	(311		)	(460		)
Other investments	(700		)	(674		)
Change in short-term investments, net	2,257			94
Change in other investments, net	(28		)	(60		)
Purchases of property and equipment, net	(216		)	(190		)
Acquisition of operations	(1,356		)	—
Net cash used in investing activities	(1,070		)	(658		)
Cash flows from financing activities
Repayments of long-term debt	—			(16		)
Contractholder fund deposits	767			785
Contractholder fund withdrawals	(1,416		)	(1,537		)
Dividends paid on common stock	(391		)	(364		)
Dividends paid on preferred stock	(87		)	(87		)
Treasury stock purchases	(848		)	(1,154		)
Shares reissued under equity incentive plans, net	132			123
Excess tax benefits on share-based payment arrangements	—			25
Other	(47		)	35
Net cash used in financing activities	(1,890		)	(2,190		)
Net increase (decrease) in cash	254			(106		)
Cash at beginning of period	436			495
Cash at end of period	$	690		$	389

The following table presents the investment portfolio by strategy as of September 30, 2017.



($ in millions)	Total		Market-Based		Performance-Based
Fixed income securities	$	59,391	$	59,318	$	73
Equity securities	6,434		6,336		98
Mortgage loans	4,322		4,322		—
Limited partnership interests	6,600		654		5,946
Short-term investments	2,198		2,198		—
Other	3,826		3,272		554
Total	$	82,771	$	76,100	$	6,671

Property-Liability	$	43,843	$	40,331	$	3,512
Allstate Financial	36,711		33,552		3,159
Corporate & Other	2,217		2,217		—
Total	$	82,771	$	76,100	$	6,671

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



	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2017			2016			2017			2016
Market-Based:
Property-Liability	$	286		$	257		$	846		$	786
Allstate Financial	366			374			1,114			1,124
Corporate & Other	11			12			36			37
Total Market-Based	663			643			1,996			1,947

Performance-Based:
Property-Liability	116			76			312			211
Allstate Financial	119			71			334			210
Corporate & Other	—			—			—			—
Total Performance-Based	235			147			646			421

Investment income, before expense	898			790			2,642			2,368
Investment expense	(55		)	(42		)	(154		)	(127		)
Net investment income	$	843		$	748		$	2,488		$	2,241

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,


•	business combination expenses and the 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, business combination expenses and the 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. Business combination expenses are excluded because they are non-recurring in nature and the 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)	Three months ended September 30,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2017			2016			2017			2016			2017			2016			2017			2016
Net income applicable to common shareholders	$	604		$	483		$	168		$	80		$	637		$	491		$	1.74		$	1.31
Realized capital gains and losses, after-tax	(54		)	(36		)	(13		)	14			(67		)	(22		)	(0.18		)	(0.06		)
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			1			—			1			—			—			—
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	—			—			2			1			2			1			0.01			—
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	(1		)	—			—			—			(1		)	—			—			—
Business combination expenses and the amortization of purchased intangible assets, after-tax	16			5			—			—			17			5			0.04			0.01
Gain on disposition of operations, after-tax	(1		)	—			(1		)	(1		)	(2		)	(1		)	(0.01		)	—
Operating income*	$	564		$	452		$	157		$	94		$	587		$	474		$	1.60		$	1.26

	Nine months ended September 30,
	Property-Liability						Allstate Financial						Consolidated						Per diluted common share
	2017			2016			2017			2016			2017			2016			2017			2016
Net income applicable to common shareholders	$	1,740		$	903		$	422		$	264		$	1,853		$	950		$	5.02		$	2.51
Realized capital gains and losses, after-tax	(199		)	10			(9		)	46			(208		)	57			(0.56		)	0.15
Valuation changes on embedded derivatives that are not hedged, after-tax	—			—			2			8			2			8			0.01			0.02
DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	—			—			8			3			8			3			0.02			0.01
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	(2		)	(1		)	—			—			(2		)	(1		)	(0.01		)	—
Business combination expenses and the amortization of purchased intangible assets, after-tax	48			17			—			—			62			17			0.17			0.04
Gain on disposition of operations, after-tax	(7		)	—			(3		)	(3		)	(10		)	(3		)	(0.03		)	(0.01		)
Operating income*	$	1,580		$	929		$	420		$	318		$	1,705		$	1,031		$	4.62		$	2.72

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

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



($ in millions)	For the twelve months ended September 30,
	2017			2016
Return on common shareholders’ equity
Numerator:
Net income applicable to common shareholders	$	2,664		$	1,410
Denominator:
Beginning common shareholders’ equity ⁽¹⁾	$	19,188		$	18,758
Ending common shareholders’ equity ⁽¹⁾	20,373			19,188
Average common shareholders’ equity	$	19,781		$	18,973
Return on common shareholders’ equity	13.5		%	7.4		%



($ in millions)	For the twelve months ended September 30,
	2017			2016
Operating income return on common shareholders’ equity
Numerator:
Operating income	$	2,512		$	1,656

Denominator:
Beginning common shareholders’ equity	$	19,188		$	18,758
Unrealized net capital gains and losses	1,817			879
Adjusted beginning common shareholders’ equity	17,371			17,879

Ending common shareholders’ equity	20,373			19,188
Unrealized net capital gains and losses	1,651			1,817
Adjusted ending common shareholders’ equity	18,722			17,371
Average adjusted common shareholders’ equity	$	18,047		$	17,625
Operating income return on common shareholders’ equity*	13.9		%	9.4		%

_____________

⁽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 September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Combined ratio	94.7		95.5		95.2		98.2
Effect of catastrophe losses	(10.6	)	(6.1	)	(11.0	)	(9.7	)
Effect of prior year non-catastrophe reserve reestimates	1.6		(1.3	)	1.3		(0.4	)
Effect of amortization of purchased intangible assets	(0.3	)	(0.1	)	(0.3	)	(0.1	)
Underlying combined ratio*	85.4		88.0		85.2		88.0

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

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



Allstate Brand - Total	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Combined ratio	92.7		93.1		93.5		96.9
Effect of catastrophe losses	(11.3	)	(6.2	)	(11.3	)	(10.0	)
Effect of prior year non-catastrophe reserve reestimates	2.9		—		1.9		—
Underlying combined ratio*	84.3		86.9		84.1		86.9

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



Allstate Brand - Auto Insurance	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Combined ratio	94.9		99.0		93.8		99.7
Effect of catastrophe losses	(7.4	)	(3.1	)	(4.4	)	(3.4	)
Effect of prior year non-catastrophe reserve reestimates	3.7		—		2.2		0.2
Underlying combined ratio*	91.2		95.9		91.6		96.5

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



Allstate Brand - Homeowners Insurance	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Combined ratio	81.3		75.9		90.7		88.7
Effect of catastrophe losses	(22.4	)	(15.4	)	(31.6	)	(29.3	)
Effect of prior year non-catastrophe reserve reestimates	2.3		0.6		1.6		0.3
Underlying combined ratio*	61.2		61.1		60.7		59.7

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



Allstate Brand - Other Personal Lines	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Combined ratio	104.3		87.5		96.1		90.4
Effect of catastrophe losses	(15.7	)	(6.0	)	(14.7	)	(12.5	)
Effect of prior year non-catastrophe reserve reestimates	(0.7	)	0.5		(0.1	)	1.2
Underlying combined ratio*	87.9		82.0		81.3		79.1

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



Esurance Brand - Total	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Combined ratio	104.4		109.8		104.3		108.3
Effect of catastrophe losses	(3.9	)	(3.3	)	(3.8	)	(2.5	)
Effect of prior year non-catastrophe reserve reestimates	0.2		1.0		0.1		1.0
Effect of amortization of purchased intangible assets	(0.2	)	(1.5	)	(0.2	)	(1.5	)
Underlying combined ratio*	100.5		106.0		100.4		105.3

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



Encompass Brand - Total	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Combined ratio	89.2		98.3		101.9		103.1
Effect of catastrophe losses	(4.5	)	(9.0	)	(15.8	)	(11.2	)
Effect of prior year non-catastrophe reserve reestimates	0.8		—		0.5		(1.8	)
Underlying combined ratio*	85.5		89.3		86.6		90.1

Effect of prior year catastrophe reserve reestimates	—		0.3		—		—

Adjusted SquareTrade operating income is a non-GAAP measure, which is computed as net income (loss) applicable to common shareholders, excluding amortization of purchased intangible assets, after-tax, and realized capital gains and losses, after-tax, and adjusted for the after-tax income statement effects of acquisition-related purchase accounting fair value adjustments to unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers. Net income (loss) applicable to shareholders is the GAAP measure that is most directly comparable to adjusted SquareTrade operating income. We use adjusted SquareTrade operating income as an important measure to evaluate SquareTrade’s results of operations. We believe that the measure provides investors with a valuable measure of SquareTrade’s ongoing performance because it reveals trends that may be obscured by the amortization of purchased intangible assets, the acquisition-related purchase accounting fair value adjustments, and the net effects of realized capital gains and losses. Amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We adjust for the effects of acquisition-related purchase accounting fair value adjustments because they relate to the acquisition and their effects are not indicative of the underlying business results and trends. Realized capital gains and losses 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 SquareTrade’s operations. Adjusted SquareTrade operating income highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of net income applicable to common shareholders to assess our performance. We believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted SquareTrade operating income and their components separately and in the aggregate when reviewing and evaluating SquareTrade’s performance. Adjusted SquareTrade 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 table reconciles the SquareTrade net loss applicable to shareholders to the adjusted SquareTrade operating loss.



SquareTrade	Three months ended September 30, 2017			Nine months ended September 30, 2017
Net loss applicable to common shareholders	$	(19	)	$	(56	)
Realized capital gains and losses, after-tax	—			—
Amortization of purchased intangible assets, after-tax	15			45
Operating loss *	(4		)	(11		)
Fair value adjustments, after-tax	2			9
Adjusted SquareTrade operating loss *	$	(2	)	$	(2	)

# # # # #

allcorp93017investorsupp

EXHIBIT 99.2 THE ALLSTATE CORPORATION Investor Supplement Third Quarter 2017 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. 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.

Consolidated Allstate Financial Operations Statements of Operations 1 Allstate Financial Segment Results 36 Contribution to Income 2 Return on Attributed Equity 37 Revenues 3 Allstate Financial Premiums and Contract Charges and Other Statistics 38 Segment Results 4,5 Allstate Financial Change in Contractholder Funds 39 Statements of Financial Position 6 Allstate Financial Analysis of Net Income 40 Book Value Per Common Share 7 Allstate Financial Weighted Average Investment Spreads 41 Return on Common Shareholders' Equity 8 Allstate Financial Supplemental Product Information 42 Debt to Capital 9 Allstate Life, Allstate Benefits and Allstate Annuities Results and Product Information 43,44 Statements of Cash Flows 10 Analysis of Deferred Policy Acquisition Costs 11,12 Corporate and Other Segment Results 45 Policies in Force and Other Statistics 13 Property-Liability Operations Investments Property-Liability Results 14 Investments 46 Property-Liability Underwriting Results by Area of Business 15 Unrealized Net Capital Gains and Losses on Security Portfolio by Type 47 Property-Liability Premiums Written by Brand 16 Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 48 Impact of Net Rate Changes Approved on Premiums Written 17 Property-Liability Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 49 Allstate Brand Profitability Measures 18 Allstate Financial Net Investment Income, Yields and Realized Capital Gains and Losses (Pre-tax) 50 Allstate Brand Statistics 19 Consolidated Investment Position and Results by Strategy 51 Allstate Brand Auto Claim Frequency Analysis 20,21 Property-Liability Consolidated Investment Position and Results by Strategy 52 Esurance Brand Profitability Measures and Statistics 22 Allstate Financial Consolidated Investment Position and Results by Strategy 53 Encompass Brand Profitability Measures and Statistics 23 Performance-Based Investments 54 SquareTrade Profitabillity Measures 24 Limited Partnership Interests 55 Auto Profitability Measures 25 Homeowners Profitability Measures 26 Definitions of Non-GAAP Measures 56 Other Personal Lines Profitability Measures 27 Commercial Lines Profitability Measures 28 Other Business Lines Profitability Measures 29 Allstate Brand Auto and Homeowners Underlying Loss and Expense 30 Homeowners Supplemental Information 31 Catastrophe Losses by Brand 32 Catastrophe Experience 33 Prior Year Reserve Reestimates 34 Asbestos and Environmental Reserves 35 THE ALLSTATE CORPORATION Investor Supplement - Third Quarter 2017 Table of Contents

1 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Revenues Property-liability insurance premiums $ 8,121 $ 8,018 $ 7,959 $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 24,098 $ 23,406 Life and annuity premiums and contract charges 593 591 593 574 571 564 566 1,777 1,701 Net investment income 843 897 748 801 748 762 731 2,488 2,241 Realized capital gains and losses: Total other-than-temporary impairment ("OTTI") losses (26) (47) (62) (72) (73) (77) (91) (135) (241) OTTI losses reclassified to (from) other comprehensive income (2) (3) 3 2 - (2) 10 (2) 8 Net OTTI losses recognized in earnings (28) (50) (59) (70) (73) (79) (81) (137) (233) Sales and other realized capital gains and losses 131 131 193 72 106 103 (68) 455 141 Total realized capital gains and losses 103 81 134 2 33 24 (149) 318 (92) Total revenues 9,660 9,587 9,434 9,278 9,221 9,164 8,871 28,681 27,256 Costs and expenses Property-liability insurance claims and claims expense 5,545 5,689 5,416 5,083 5,553 5,901 5,684 16,650 17,138 Life and annuity contract benefits 456 486 474 464 484 454 455 1,416 1,393 Interest credited to contractholder funds 174 175 173 168 183 185 190 522 558 Amortization of deferred policy acquisition costs 1,200 1,176 1,169 1,157 1,138 1,126 1,129 3,545 3,393 Operating costs and expenses 1,218 1,086 1,097 1,063 1,021 1,040 982 3,401 3,043 Restructuring and related charges 14 53 10 9 5 11 5 77 21 Interest expense 83 83 85 77 73 72 73 251 218 Total costs and expenses 8,690 8,748 8,424 8,021 8,457 8,789 8,518 25,862 25,764 Gain on disposition of operations 1 12 2 1 1 1 2 15 4 Income from operations before income tax expense 971 851 1,012 1,258 765 376 355 2,834 1,496 Income tax expense 305 272 317 418 245 105 109 894 459 Net income $ 666 $ 579 $ 695 $ 840 $ 520 $ 271 $ 246 $ 1,940 $ 1,037 Preferred stock dividends 29 29 29 29 29 29 29 87 87 Net income applicable to common shareholders $ 637 $ 550 $ 666 $ 811 $ 491 $ 242 $ 217 $ 1,853 $ 950 Earnings per common share: (1) Net income applicable to common shareholders per common share - Basic $ 1.76 $ 1.51 $ 1.82 $ 2.20 $ 1.32 $ 0.65 $ 0.57 $ 5.10 $ 2.54 Weighted average common shares - Basic 361.3 363.6 365.7 368.0 371.5 373.6 378.1 363.5 374.4 Net income applicable to common shareholders per common share - Diluted $ 1.74 $ 1.49 $ 1.79 $ 2.18 $ 1.31 $ 0.64 $ 0.57 $ 5.02 $ 2.51 Weighted average common shares - Diluted 367.1 369.0 371.3 372.5 375.9 378.1 382.9 369.1 378.9 Cash dividends declared per common share $ 0.37 $ 0.37 $ 0.37 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 1.11 $ 0.99 (1) In accordance with GAAP, the quarter and year-to-date per share amounts are calculated discretely. Therefore, the sum of each quarter may not equal the year-to-date amount. THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Nine months endedThree months ended

2 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Contribution to income Net income applicable to common shareholders $ 637 $ 550 $ 666 $ 811 $ 491 $ 242 $ 217 $ 1,853 $ 950 Realized capital gains and losses, after-tax (67) (53) (88) (1) (22) (17) 96 (208) 57 Valuation changes on embedded derivatives that are not hedged, after-tax 1 1 - (6) - 4 4 2 8 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax 2 3 3 1 1 1 1 8 3 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) (1) - (2) - - (1) (2) (1) Business combination expenses and the amortization of purchased intangible assets, after-tax 17 16 29 4 5 6 6 62 17 Gain on disposition of operations, after-tax (2) (6) (2) - (1) (1) (1) (10) (3) Operating income * $ 587 $ 510 $ 608 $ 807 $ 474 $ 235 $ 322 $ 1,705 $ 1,031 Income per common share - Diluted Net income applicable to common shareholders $ 1.74 $ 1.49 $ 1.79 $ 2.18 $ 1.31 $ 0.64 $ 0.57 $ 5.02 $ 2.51 Realized capital gains and losses, after-tax (0.18) (0.14) (0.24) - (0.06) (0.04) 0.25 (0.56) 0.15 Valuation changes on embedded derivatives that are not hedged, after-tax - - - (0.02) - 0.01 0.01 0.01 0.02 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 - - - - 0.02 0.01 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax - - - - - - - (0.01) - Business combination expenses and the amortization of purchased intangible assets, after-tax 0.04 0.04 0.08 0.01 0.01 0.01 0.01 0.17 0.04 Gain on disposition of operations, after-tax (0.01) (0.02) - - - - - (0.03) (0.01) Operating income * $ 1.60 $ 1.38 $ 1.64 $ 2.17 $ 1.26 $ 0.62 $ 0.84 $ 4.62 $ 2.72 Weighted average common shares - Diluted 367.1 369.0 371.3 372.5 375.9 378.1 382.9 369.1 378.9 THE ALLSTATE CORPORATION CONTRIBUTION TO INCOME ($ in millions, except per share data) Nine months endedThree months ended

3 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Property-Liability Property-Liability insurance premiums $ 8,121 $ 8,018 $ 7,959 $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 24,098 $ 23,406 Net investment income 372 391 311 338 310 316 302 1,074 928 Realized capital gains and losses 82 85 135 14 53 26 (99) 302 (20) Total Property-Liability revenues 8,575 8,494 8,405 8,253 8,232 8,156 7,926 25,474 24,314 Allstate Financial Life and annuity premiums and contract charges 593 591 593 574 571 564 566 1,777 1,701 Net investment income 461 496 426 453 427 435 419 1,383 1,281 Realized capital gains and losses 21 (4) (1) (11) (21) - (49) 16 (70) Total Allstate Financial revenues 1,075 1,083 1,018 1,016 977 999 936 3,176 2,912 Corporate and Other Net investment income 10 10 11 10 11 11 10 31 32 Realized capital gains and losses - - - (1) 1 (2) (1) - (2) Total Corporate and Other revenues 10 10 11 9 12 9 9 31 30 Consolidated revenues $ 9,660 $ 9,587 $ 9,434 $ 9,278 $ 9,221 $ 9,164 $ 8,871 $ 28,681 $ 27,256 THE ALLSTATE CORPORATION REVENUES ($ in millions) Nine months endedThree months ended

4 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 8,121 $ - $ 8,121 $ 593 $ - $ 8,714 Claims and claims expense (5,457) (88) (5,545) - - (5,545) Contract benefits and interest credited to contractholder funds - - - (630) - (630) Amortization of deferred policy acquisition costs (1,138) - (1,138) (62) - (1,200) Operating costs and expenses (995) - (995) (130) (93) (1) (1,218) Restructuring and related charges (13) - (13) (1) - (14) Interest expense (1) - (1) - (82) (83) Underwriting income (loss) $ 517 $ (88) $ 429 Net investment income 372 461 10 843 Realized capital gains and losses 82 21 - 103 Gain on disposition of operations - 1 - 1 Income tax (expense) benefit (279) (85) 59 (305) Preferred stock dividends - - (29) (29) Net income (loss) applicable to common shareholders $ 604 $ 168 $ (135) $ 637 Realized capital gains and losses, after-tax (54) (13) - (67) Valuation changes on embedded derivatives that are not hedged, after-tax - 1 - 1 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax - 2 - 2 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (1) - - (1) Business combination expenses and the amortization of purchased intangible assets, after-tax 16 - 1 17 Gain on disposition of operations, after-tax (1) (1) - (2) Operating income (loss) * $ 564 $ 157 (2) $ (134) (2) $ 587 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 7,869 $ - $ 7,869 $ 571 $ - $ 8,440 Claims and claims expense (5,454) (99) (5,553) - - (5,553) Contract benefits and interest credited to contractholder funds - - - (667) - (667) Amortization of deferred policy acquisition costs (1,068) - (1,068) (70) - (1,138) Operating costs and expenses (887) (1) (888) (126) (7) (1,021) Restructuring and related charges (5) - (5) - - (5) Interest expense - - - - (73) (73) Underwriting income (loss) $ 455 $ (100) $ 355 Net investment income 310 427 11 748 Realized capital gains and losses 53 (21) 1 33 Gain on disposition of operations - 1 - 1 Income tax (expense) benefit (235) (35) 25 (245) Preferred stock dividends - - (29) (29) Net income (loss) applicable to common shareholders $ 483 $ 80 $ (72) $ 491 Realized capital gains and losses, after-tax (36) 14 - (22) Valuation changes on embedded derivatives 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 - 1 - 1 - - - - Business combination expenses and the amortization of purchased intangible assets, after-tax 5 - - 5 Gain on disposition of operations, after-tax - (1) - (1) Operating income (loss) * $ 452 $ 94 (2) $ (72) (2) $ 474 (1) (2) Operating income is the segment measure for Allstate Financial and Corporate and Other and is not a non-GAAP measure. Includes a pension settlement loss of $86 million recorded for the three months ended September 30, 2017. For the three months ended September 30, 2016 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax THE ALLSTATE CORPORATION SEGMENT RESULTS ($ in millions) For the three months ended September 30, 2017

5 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 24,098 $ - $ 24,098 $ 1,777 $ - $ 25,875 Claims and claims expense (16,557) (93) (16,650) - - (16,650) Contract benefits and interest credited to contractholder funds - - - (1,938) - (1,938) Amortization of deferred policy acquisition costs (3,331) - (3,331) (214) - (3,545) Operating costs and expenses (2,876) (2) (2,878) (395) (128) (1) (3,401) Restructuring and related charges (75) - (75) (2) - (77) Interest expense (1) - (1) - (250) (251) Underwriting income (loss) $ 1,258 $ (95) $ 1,163 Net investment income 1,074 1,383 31 2,488 Realized capital gains and losses 302 16 - 318 Gain on disposition of operations 10 5 - 15 Income tax (expense) benefit (809) (210) 125 (894) Preferred stock dividends - - (87) (87) Net income (loss) applicable to common shareholders $ 1,740 $ 422 $ (309) $ 1,853 Realized capital gains and losses, after-tax (199) (9) - (208) 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 - 8 - 8 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax (2) - - (2) Business combination expenses and the amortization of purchased intangible assets, after-tax 48 - 14 62 Gain on disposition of operations, after-tax (7) (3) - (10) Operating income (loss) * $ 1,580 $ 420 (2) $ (295) (2) $ 1,705 Discontinued Total Allstate Lines and Property- Allstate Corporate Protection Coverages Liability Financial and Other Consolidated Premiums and contract charges $ 23,406 $ - $ 23,406 $ 1,701 $ - $ 25,107 Claims and claims expense (17,036) (102) (17,138) - - (17,138) Contract benefits and interest credited to contractholder funds - - - (1,951) - (1,951) Amortization of deferred policy acquisition costs (3,181) - (3,181) (212) - (3,393) Operating costs and expenses (2,651) (2) (2,653) (370) (20) (3,043) Restructuring and related charges (20) - (20) (1) - (21) Interest expense - - - - (218) (218) Underwriting income (loss) $ 518 $ (104) $ 414 Net investment income 928 1,281 32 2,241 Realized capital gains and losses (20) (70) (2) (92) Gain on disposition of operations - 4 - 4 Income tax (expense) benefit (419) (118) 78 (459) Preferred stock dividends - - (87) (87) Net income (loss) applicable to common shareholders $ 903 $ 264 $ (217) $ 950 Realized capital gains and losses, after-tax 10 46 1 57 Valuation changes on embedded derivatives that are not hedged, after-tax - 8 - 8 DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax - 3 - 3 (1) - - (1) Business combination expenses and the amortization of purchased intangible assets, after-tax 17 - - 17 Gain on disposition of operations, after-tax - (3) - (3) Operating income (loss) * $ 929 $ 318 (2) $ (216) (2) $ 1,031 (1) (2) Operating income is the segment measure for Allstate Financial and Corporate and Other and is not a non-GAAP measure. THE ALLSTATE CORPORATION SEGMENT RESULTS ($ in millions) For the nine months ended September 30, 2017 Includes a pension settlement loss of $86 million recorded in the third quarter of 2017. For the nine months ended September 30, 2016 Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax

6 Sept 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2017 2017 2017 2016 2016 2017 2017 2017 2016 2016 Assets Liabilities Investments Reserve for property-liability insurance claims and Fixed income securities, at fair value claims expense $ 27,154 $ 25,884 $ 25,628 $ 25,250 $ 25,450 (amortized cost $57,608, $56,901, Reserve for life-contingent contract benefits 12,227 12,234 12,223 12,239 12,228 $57,194, $56,576 and $57,775) $ 59,391 $ 58,656 $ 58,636 $ 57,839 $ 60,306 Contractholder funds 19,650 19,832 20,051 20,260 20,583 Equity securities, at fair value Unearned premiums 13,535 13,024 12,705 12,583 12,772 (cost $5,468, $5,321, $5,026, Claim payments outstanding 959 939 845 879 934 $5,157 and $4,800) 6,434 6,117 5,685 5,666 5,288 Deferred income taxes 1,249 1,104 833 487 935 Mortgage loans 4,322 4,336 4,349 4,486 4,396 Other liabilities and accrued expenses 6,968 6,583 7,018 6,599 6,122 Limited partnership interests 6,600 6,206 5,982 5,814 5,588 Long-term debt 6,349 6,348 6,346 6,347 5,110 Short-term, at fair value Separate Accounts 3,422 3,416 3,436 3,393 3,469 (amortized cost $2,198, $2,175, $2,753, Total liabilities 91,513 89,364 89,085 88,037 87,603 $4,288 and $1,863) 2,198 2,175 2,753 4,288 1,863 Other 3,826 3,815 3,738 3,706 3,663 Equity Total investments 82,771 81,305 81,143 81,799 81,104 Preferred stock and additional capital paid-in, 72.2 thousand shares outstanding 1,746 1,746 1,746 1,746 1,746 Common stock, 360 million, 361 million, 365 million, 366 million and 368 million shares outstanding (2) 9 9 9 9 9 Additional capital paid-in 3,330 3,269 3,285 3,303 3,237 Retained income 42,125 41,622 41,208 40,678 39,990 Deferred ESOP expense (6) (6) (6) (6) (13) Treasury stock, at cost (540 million, 539 million, 535 million, 534 million and 532 million shares) (25,413) (25,241) (24,887) (24,741) (24,537) 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 68 65 59 57 56 Cash 690 482 442 436 389 Other unrealized net capital gains and losses 1,715 1,590 1,304 1,091 1,902 Premium installment receivables, net 5,922 5,693 5,649 5,597 5,799 Unrealized adjustment to DAC, DSI Deferred policy acquisition costs 4,147 4,037 3,988 3,954 3,886 and insurance reserves (132) (129) (107) (95) (141) Reinsurance recoverables, net (1) 9,748 8,722 8,723 8,745 8,922 Total unrealized net capital gains and losses 1,651 1,526 1,256 1,053 1,817 Accrued investment income 590 573 577 567 567 Unrealized foreign currency translation Property and equipment, net 1,067 1,072 1,067 1,065 1,013 adjustments (14) (42) (53) (50) (48) Goodwill 2,309 2,309 2,295 1,219 1,219 Unrecognized pension and other Other assets 2,966 3,256 2,923 1,835 2,169 postretirement benefit cost (1,309) (1,382) (1,400) (1,419) (1,267) Separate Accounts 3,422 3,416 3,436 3,393 3,469 Total accumulated other comprehensive income (loss) 328 102 (197) (416) 502 Total shareholders' equity 22,119 21,501 21,158 20,573 20,934 Total assets $ 113,632 $ 110,865 $ 110,243 $ 108,610 $ 108,537 Total liabilities and shareholders' equity $ 113,632 $ 110,865 $ 110,243 $ 108,610 $ 108,537 (1) (2) THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ($ in millions) Reinsurance recoverables of unpaid losses related to Property-Liability were $7.26 billion, $6.21 billion, $6.18 billion, $6.18 billion and $6.35 billion as of September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, respectively. Common shares outstanding were 359,787,293; 361,280,366; 365,015,746; 365,771,746 and 368,126,127 as of September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, respectively.

7 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2017 2016 2016 2016 2016 Book value per common share Numerator: Common shareholders' equity (1) $ 20,373 $ 19,755 $ 19,412 $ 18,827 $ 19,188 $ 18,807 $ 18,594 Denominator: Common shares outstanding and dilutive potential common shares outstanding 365.8 367.0 370.4 370.8 372.7 375.8 380.3 Book value per common share $ 55.69 $ 53.83 $ 52.41 $ 50.77 $ 51.48 $ 50.05 $ 48.89 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities Numerator: Common shareholders' equity $ 20,373 $ 19,755 $ 19,412 $ 18,827 $ 19,188 $ 18,807 $ 18,594 Unrealized net capital gains and losses on fixed income securities 1,028 1,013 831 727 1,506 1,407 993 Adjusted common shareholders' equity $ 19,345 $ 18,742 $ 18,581 $ 18,100 $ 17,682 $ 17,400 $ 17,601 Denominator: Common shares outstanding and dilutive potential common shares outstanding 365.8 367.0 370.4 370.8 372.7 375.8 380.3 Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities * $ 52.88 $ 51.07 $ 50.16 $ 48.81 $ 47.44 $ 46.30 $ 46.28 (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.

8 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2017 2016 2016 2016 2016 Return on Common Shareholders' Equity Numerator: Net income applicable to common shareholders (1) $ 2,664 $ 2,518 $ 2,210 $ 1,761 $ 1,410 $ 1,540 $ 1,624 Denominator: Beginning common shareholders' equity $ 19,188 $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Ending common shareholders' equity 20,373 19,755 19,412 18,827 19,188 18,807 18,594 Average common shareholders' equity (2) $ 19,781 $ 19,281 $ 19,003 $ 18,553 $ 18,973 $ 19,180 $ 19,514 Return on common shareholders' equity 13.5 % 13.1 % 11.6 % 9.5 % 7.4 % 8.0 % 8.3 % Operating Income Return on Common Shareholders' Equity Numerator: Operating income * (1) $ 2,512 $ 2,399 $ 2,124 $ 1,838 $ 1,656 $ 1,792 $ 1,819 Denominator: Beginning common shareholders' equity $ 19,188 $ 18,807 $ 18,594 $ 18,279 $ 18,758 $ 19,552 $ 20,433 Unrealized net capital gains and losses 1,817 1,624 1,200 620 879 1,419 2,137 Adjusted beginning common shareholders' equity 17,371 17,183 17,394 17,659 17,879 18,133 18,296 Ending common shareholders' equity 20,373 19,755 19,412 18,827 19,188 18,807 18,594 Unrealized net capital gains and losses 1,651 1,526 1,256 1,053 1,817 1,624 1,200 Adjusted ending common shareholders' equity 18,722 18,229 18,156 17,774 17,371 17,183 17,394 Average adjusted common shareholders' equity (2) $ 18,047 $ 17,706 $ 17,775 $ 17,717 $ 17,625 $ 17,658 $ 17,845 Operating income return on common shareholders' equity * 13.9 % 13.5 % 11.9 % 10.4 % 9.4 % 10.1 % 10.2 % (1) (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 Net income applicable to common shareholders and operating income reflect a trailing twelve-month period.

9 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2017 2016 2016 2016 2016 Debt Short-term debt $ - $ - $ - $ - $ - $ - $ - Long-term debt 6,349 6,348 6,346 6,347 5,110 5,109 5,108 Total debt $ 6,349 $ 6,348 $ 6,346 $ 6,347 $ 5,110 $ 5,109 $ 5,108 Capital resources Debt $ 6,349 $ 6,348 $ 6,346 $ 6,347 $ 5,110 $ 5,109 $ 5,108 Shareholders' equity Preferred stock and additional capital paid-in 1,746 1,746 1,746 1,746 1,746 1,746 1,746 Common stock 9 9 9 9 9 9 9 Additional capital paid-in 3,330 3,269 3,285 3,303 3,237 3,203 3,237 Retained income 42,125 41,622 41,208 40,678 39,990 39,623 39,505 Deferred ESOP expense (6) (6) (6) (6) (13) (13) (13) Treasury stock (25,413) (25,241) (24,887) (24,741) (24,537) (24,310) (23,994) Unrealized net capital gains and losses 1,651 1,526 1,256 1,053 1,817 1,624 1,200 Unrealized foreign currency translation adjustments (14) (42) (53) (50) (48) (41) (46) Unrecognized pension and other postretirement benefit cost (1,309) (1,382) (1,400) (1,419) (1,267) (1,288) (1,304) Total shareholders' equity 22,119 21,501 21,158 20,573 20,934 20,553 20,340 Total capital resources $ 28,468 $ 27,849 $ 27,504 $ 26,920 $ 26,044 $ 25,662 $ 25,448 Ratio of debt to shareholders' equity 28.7 % 29.5 % 30.0 % 30.9 % 24.4 % 24.9 % 25.1 % Ratio of debt to capital resources 22.3 % 22.8 % 23.1 % 23.6 % 19.6 % 19.9 % 20.1 % THE ALLSTATE CORPORATION DEBT TO CAPITAL ($ in millions)

10 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 666 $ 579 $ 695 $ 840 $ 520 $ 271 $ 246 $ 1,940 $ 1,037 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other non-cash items 120 119 119 97 97 97 91 358 285 Realized capital gains and losses (103) (81) (134) (2) (33) (24) 149 (318) 92 Gain on disposition of operations (1) (12) (2) (1) (1) (1) (2) (15) (4) Interest credited to contractholder funds 174 175 173 168 183 185 190 522 558 Changes in: Policy benefits and other insurance reserves 1,048 45 183 (347) 401 118 459 1,276 978 Unearned premiums 491 282 (248) (178) 478 267 (205) 525 540 Deferred policy acquisition costs (111) (79) 14 (6) (87) (65) (7) (176) (159) Premium installment receivables, net (216) (32) (19) 194 (209) (38) 11 (267) (236) Reinsurance recoverables, net (1,023) (5) 11 156 (300) (80) (40) (1,017) (420) Income taxes 161 (326) 284 387 206 (150) (26) 119 30 Other operating assets and liabilities 660 (174) (219) (57) 129 64 (152) 267 41 Net cash provided by operating activities 1,866 491 857 1,251 1,384 644 714 3,214 2,742 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales Fixed income securities 4,987 7,438 7,083 5,929 6,543 6,373 6,216 19,508 19,132 Equity securities 1,749 829 2,601 1,477 1,582 823 1,664 5,179 4,069 Limited partnership interests 286 271 210 247 271 183 180 767 634 Mortgage loans - - - - - (7) 7 - - Other investments 52 94 24 56 62 57 87 170 206 Investment collections Fixed income securities 975 1,034 1,029 1,103 1,292 1,189 949 3,038 3,430 Mortgage loans 172 82 223 98 253 71 79 477 403 Other investments 121 163 174 140 113 125 43 458 281 Investment purchases Fixed income securities (6,721) (8,414) (8,800) (5,708) (9,335) (7,546) (5,401) (23,935) (22,282) Equity securities (1,823) (1,090) (2,383) (1,837) (1,441) (939) (1,733) (5,296) (4,113) Limited partnership interests (504) (310) (268) (322) (425) (433) (270) (1,082) (1,128) Mortgage loans (163) (62) (86) (186) (196) (220) (44) (311) (460) Other investments (168) (313) (219) (211) (225) (196) (253) (700) (674) Change in short-term investments, net 115 570 1,572 (2,540) 763 688 (1,357) 2,257 94 Change in other investments, net (135) 117 (10) 9 (21) (20) (19) (28) (60) Purchases of property and equipment, net (70) (72) (74) (123) (70) (68) (52) (216) (190) Acquisition of operations - - (1,356) - - - - (1,356) - Net cash (used in) provided by investing activities (1,127) 337 (280) (1,868) (834) 80 96 (1,070) (658) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt - - - 1,236 - - - - - Repayments of long-term debt - - - (1) - - (16) - (16) Contractholder fund deposits 252 258 257 264 263 261 261 767 785 Contractholder fund withdrawals (459) (474) (483) (550) (524) (521) (492) (1,416) (1,537) Dividends paid on common stock (134) (135) (122) (122) (124) (125) (115) (391) (364) Dividends paid on preferred stock (29) (29) (29) (29) (29) (29) (29) (87) (87) Treasury stock purchases (191) (393) (264) (183) (250) (448) (456) (848) (1,154) Shares reissued under equity incentive plans, net 24 41 67 41 51 42 30 132 123 Excess tax benefits on share-based payment arrangements - - - 7 5 8 12 - 25 Other 6 (56) 3 1 1 3 31 (47) 35 Net cash (used in) provided by financing activities (531) (788) (571) 664 (607) (809) (774) (1,890) (2,190) NET INCREASE (DECREASE) IN CASH 208 40 6 47 (57) (85) 36 254 (106) CASH AT BEGINNING OF PERIOD 482 442 436 389 446 531 495 436 495 CASH AT END OF PERIOD $ 690 $ 482 $ 442 $ 436 $ 389 $ 446 $ 531 $ 690 $ 389 THE ALLSTATE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Nine months endedThree months ended

11 Amortization relating to realized capital gains and Amortization losses and (acceleration) Effect of Beginning Acquisition Amortization valuation changes on deceleration unrealized Ending balance costs before embedded derivatives for changes in capital gains balance June 30, 2017 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Sept. 30, 2017 Property-Liability $ 2,328 $ 1,242 $ (1,138) $ - $ - $ - $ 2,432 Allstate Financial: Traditional life and accident and health 841 50 (34) - - - 857 Interest-sensitive life 831 21 (35) (4) 13 (3) 823 Fixed annuity 37 - (2) - - - 35 Subtotal 1,709 71 (71) (4) 13 (3) 1,715 Consolidated $ 4,037 $ 1,313 $ (1,209) $ (4) $ 13 $ (3) $ 4,147 Amortization relating to realized capital gains and Amortization losses and (acceleration) Effect of Beginning Acquisition Amortization valuation changes on deceleration unrealized Ending balance costs before embedded derivatives for changes in capital gains balance June 30, 2016 deferred adjustments that are not hedged assumptions and losses Sept. 30, 2016 Property-Liability $ 2,101 $ 1,153 $ (1,068) $ - $ - $ - $ 2,186 Allstate Financial: Traditional life and accident and health 806 45 (41) - - - 810 Interest-sensitive life 868 25 (27) (2) 2 (18) 848 Fixed annuity 44 - (2) - - - 42 Subtotal 1,718 70 (70) (2) 2 (18) 1,700 Consolidated $ 3,819 $ 1,223 $ (1,138) $ (2) $ 2 $ (18) $ 3,886 (1) (2) Included as a component of amortization of DAC on the Consolidated Statements of Operations. Amortization before adjustments reflects total DAC amortization before amortization/accretion related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged and amortization acceleration/deceleration for changes in assumptions. THE ALLSTATE CORPORATION ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS ($ in millions) Change in Deferred Policy Acquisition Costs For the three months ended September 30, 2017 Change in Deferred Policy Acquisition Costs For the three months ended September 30, 2016

12 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, 2016 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Sept. 30, 2017 and losses and losses and losses Property-Liability $ 2,188 $ 3,575 (3) $ (3,331) $ - $ - $ - $ 2,432 $ 2,432 $ - $ 2,432 Allstate Financial: Traditional life and accident and health 821 151 (115) - - - 857 857 - 857 Interest-sensitive life 905 64 (95) (12) 13 (52) 823 1,015 (192) 823 Fixed annuity 40 - (5) - - - 35 35 - 35 Subtotal 1,766 215 (215) (12) 13 (52) 1,715 1,907 (192) 1,715 Consolidated $ 3,954 $ 3,790 $ (3,546) $ (12) $ 13 $ (52) $ 4,147 $ 4,339 $ (192) $ 4,147 Amortization relating to realized capital gains and Amortization DAC before DAC after losses and (acceleration) Effect of impact of Impact of impact of Beginning Acquisition Amortization valuation changes on deceleration unrealized Ending unrealized unrealized unrealized balance costs before embedded derivatives for changes in capital gains balance capital gains capital gains capital gains Dec. 31, 2015 deferred adjustments (1)(2) that are not hedged (2) assumptions (2) and losses Sept. 30, 2016 and losses and losses and losses Property-Liability $ 2,029 $ 3,338 $ (3,181) $ - $ - $ - $ 2,186 $ 2,186 $ - $ 2,186 Allstate Financial: Traditional life and accident and health 792 139 (121) - - - 810 810 - 810 Interest-sensitive life 993 77 (83) (5) 2 (136) 848 1,050 (202) 848 Fixed annuity 47 - (5) - - - 42 42 - 42 Subtotal 1,832 216 (209) (5) 2 (136) 1,700 1,902 (202) 1,700 Consolidated $ 3,861 $ 3,554 $ (3,390) $ (5) $ 2 $ (136) $ 3,886 $ 4,088 $ (202) $ 3,886 (1) (2) (3) Included as a component of amortization of DAC on the Consolidated Statements of Operations. Includes $70 million recorded in connection with the SquareTrade acquisition on January 3, 2017. For the nine months ended September 30, 2017 Acquisition Costs as of September 30, 2017 THE ALLSTATE CORPORATION ANALYSIS OF DEFERRED POLICY ACQUISITION COSTS ($ in millions) Change in Deferred Policy Acquisition Costs Reconciliation of Deferred Policy Change in Deferred Policy Acquisition Costs Reconciliation of Deferred Policy For the nine months ended September 30, 2016 Acquisition Costs as of September 30, 2016 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.

13 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2017 2016 2016 2016 2016 Policies in Force statistics (in thousands) Allstate Protection (1) Allstate brand Auto 19,513 19,548 19,565 19,742 19,852 20,061 20,145 Homeowners 6,071 6,075 6,090 6,120 6,131 6,158 6,176 Landlord 697 703 710 716 720 726 732 Renter 1,578 1,564 1,563 1,568 1,557 1,554 1,556 Condominium 662 662 663 666 665 667 667 Other 1,275 1,270 1,264 1,264 1,260 1,256 1,253 Other personal lines 4,212 4,199 4,200 4,214 4,202 4,203 4,208 Commercial lines 251 262 272 285 296 308 318 Allstate Roadside Services 708 724 743 768 797 824 856 Allstate Dealer Services 4,130 4,139 4,150 4,142 4,125 4,059 3,987 Other business lines 4,838 4,863 4,893 4,910 4,922 4,883 4,843 Total 34,885 34,947 35,020 35,271 35,403 35,613 35,690 Esurance brand Auto 1,369 1,388 1,400 1,391 1,395 1,409 1,428 Homeowners 76 69 63 58 52 44 37 Other personal lines 45 47 48 47 47 47 46 Total 1,490 1,504 1,511 1,496 1,494 1,500 1,511 Encompass brand Auto 548 571 595 622 649 676 701 Homeowners 262 273 284 295 305 318 329 Other personal lines 88 91 94 98 101 105 108 Total 898 935 973 1,015 1,055 1,099 1,138 SquareTrade (2) 34,078 31,258 29,907 - - - - Allstate Protection Policies in Force 71,351 68,644 67,411 37,782 37,952 38,212 38,339 Allstate Financial (3) Allstate Life 2,019 2,020 2,017 2,023 2,019 2,022 2,021 Allstate Benefits 4,035 4,064 3,992 3,755 3,733 3,752 3,726 Allstate Annuities 236 240 246 251 256 261 267 Allstate Financial Policies in Force 6,290 6,324 6,255 6,029 6,008 6,035 6,014 Total Policies in Force 77,641 74,968 73,666 43,811 43,960 44,247 44,353 Agency Data (4) Total Allstate agencies (5) 12,200 12,200 12,200 12,200 12,200 12,200 12,100 Licensed sales professionals (6) 23,900 24,000 23,600 23,800 23,600 23,800 24,000 Allstate independent agencies (7) 2,400 2,300 2,200 2,200 2,200 2,000 2,100 (1) (2) (3) (4) (5) (6) (7) SquareTrade had PIF of 28.5, 25.8, 24.4 and 23.0 million at December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. These numbers are prior to the acquisition of SquareTrade on January 3, 2017 and are not included in the periods above. THE ALLSTATE CORPORATION POLICIES IN FORCE AND OTHER STATISTICS 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. • Non-proprietary products offered by Ivantage (insurance agency) and Answer Financial (independent insurance agency) are not included. • Allstate Roadside Services represents memberships in force and do not include their wholesale partners as the customer relationship is managed by the wholesale partner. • Allstate Dealer Services represents service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators (“TPAs”) as the customer relationship is managed by the TPAs. • SquareTrade represents active consumer product protection plans. 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. Rounded to the nearest hundred. Total Allstate agencies represents exclusive Allstate agencies and financial representatives in the United States and Canada. Employees of Allstate agencies who are licensed to sell Allstate products. Includes 572 and 488 engaged Allstate independent agencies (“AIAs”) as of September 30, 2017 and December 31, 2016, respectively. Engaged AIAs, as currently determined, include those that achieve a minimum number of new policies written.

14 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Premiums written $ 8,583 $ 8,289 $ 7,723 $ 7,723 $ 8,311 $ 8,051 $ 7,515 $ 24,595 $ 23,877 (Increase) decrease in unearned premiums (513) (301) 234 189 (472) (264) 166 (580) (570) Other 51 30 2 (11) 30 27 42 83 99 Premiums earned 8,121 8,018 7,959 7,901 7,869 7,814 7,723 24,098 23,406 Claims and claims expense (5,545) (5,689) (5,416) (5,083) (5,553) (5,901) (5,684) (16,650) (17,138) Amortization of deferred policy acquisition costs (1,138) (1,103) (1,090) (1,086) (1,068) (1,057) (1,056) (3,331) (3,181) Operating costs and expenses (996) (947) (936) (927) (888) (912) (853) (2,879) (2,653) Restructuring and related charges (13) (52) (10) (9) (5) (10) (5) (75) (20) Underwriting income (loss) 429 227 507 796 355 (66) 125 1,163 414 Net investment income 372 391 311 338 310 316 302 1,074 928 Income tax expense on operations (252) (196) (255) (383) (218) (70) (141) (703) (429) Realized capital gains and losses, after-tax 54 56 89 10 36 18 (64) 199 (10) Gain on disposition of operations, after-tax 1 6 - - - - - 7 - Net income applicable to common shareholders $ 604 $ 484 $ 652 $ 761 $ 483 $ 198 $ 222 $ 1,740 $ 903 Catastrophe losses $ 861 $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 2,635 $ 2,269 Amortization of purchased intangible assets $ 25 $ 24 $ 25 $ 5 $ 9 $ 9 $ 9 $ 74 $ 27 Operating ratios Claims and claims expense ("loss") ratio 68.3 71.0 68.0 64.3 70.6 75.5 73.6 69.1 73.2 Expense ratio 26.4 26.2 25.6 25.6 24.9 25.3 24.8 26.1 25.0 Combined ratio 94.7 97.2 93.6 89.9 95.5 100.8 98.4 95.2 98.2 Loss ratio 68.3 71.0 68.0 64.3 70.6 75.5 73.6 69.1 73.2 Less: effect of catastrophe losses 10.6 12.4 9.8 3.8 6.1 12.3 10.7 11.0 9.7 effect of prior year non-catastrophe reserve reestimates (1.6) (1.0) (1.3) (1.6) 1.3 (0.2) 0.4 (1.3) 0.4 Underlying loss ratio * 59.3 59.6 59.5 62.1 63.2 63.4 62.5 59.4 63.1 Expense ratio 26.4 26.2 25.6 25.6 24.9 25.3 24.8 26.1 25.0 Less: effect of amortization of purchased intangible assets 0.3 0.3 0.3 - 0.1 0.1 0.1 0.3 0.1 Expense ratio, excluding the effect of amortization of purchased intangible assets 26.1 25.9 25.3 25.6 24.8 25.2 24.7 25.8 24.9 Reconciliation of combined ratio to underlying combined ratio Combined ratio 94.7 97.2 93.6 89.9 95.5 100.8 98.4 95.2 98.2 Effect of catastrophe losses (10.6) (12.4) (9.8) (3.8) (6.1) (12.3) (10.7) (11.0) (9.7) Effect of prior year non-catastrophe reserve reestimates 1.6 1.0 1.3 1.6 (1.3) 0.2 (0.4) 1.3 (0.4) Effect of amortization of purchased intangible assets (0.3) (0.3) (0.3) - (0.1) (0.1) (0.1) (0.3) (0.1) Underlying combined ratio * 85.4 85.5 84.8 87.7 88.0 88.6 87.2 85.2 88.0 Effect of restructuring and related charges on combined ratio 0.2 0.6 0.1 0.1 0.1 0.1 0.1 0.3 0.1 Effect of Discontinued Lines and Coverages on combined ratio 1.1 0.1 - - 1.3 - - 0.4 0.4 THE ALLSTATE CORPORATION PROPERTY-LIABILITY RESULTS ($ in millions) Nine months endedThree months ended

15 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Property-Liability Underwriting Summary Allstate Protection $ 517 $ 232 $ 509 $ 799 $ 455 $ (64) $ 127 $ 1,258 $ 518 Discontinued Lines and Coverages (88) (5) (2) (3) (100) (2) (2) (95) (104) Underwriting income (loss) $ 429 $ 227 $ 507 $ 796 $ 355 $ (66) $ 125 $ 1,163 $ 414 Allstate Protection Underwriting Summary Premiums written $ 8,583 $ 8,289 $ 7,723 $ 7,722 $ 8,309 $ 8,051 $ 7,515 $ 24,595 $ 23,875 Premiums earned $ 8,121 $ 8,018 $ 7,959 $ 7,901 $ 7,869 $ 7,814 $ 7,723 $ 24,098 $ 23,406 Claims and claims expense (5,457) (5,686) (5,414) (5,080) (5,454) (5,899) (5,683) (16,557) (17,036) Amortization of deferred policy acquisition costs (1,138) (1,103) (1,090) (1,086) (1,068) (1,057) (1,056) (3,331) (3,181) Operating costs and expenses (996) (945) (936) (927) (887) (912) (852) (2,877) (2,651) Restructuring and related charges (13) (52) (10) (9) (5) (10) (5) (75) (20) Underwriting income (loss) $ 517 $ 232 $ 509 $ 799 $ 455 $ (64) $ 127 $ 1,258 $ 518 Catastrophe losses $ 861 $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 2,635 $ 2,269 Operating ratios Loss ratio 67.2 70.9 68.0 64.3 69.3 75.5 73.6 68.7 72.8 Expense ratio 26.4 26.2 25.6 25.6 24.9 25.3 24.8 26.1 25.0 Combined ratio 93.6 97.1 93.6 89.9 94.2 100.8 98.4 94.8 97.8 Effect of catastrophe losses on combined ratio 10.6 12.4 9.8 3.8 6.1 12.3 10.7 11.0 9.7 Effect of restructuring and related charges on combined ratio 0.2 0.6 0.1 0.1 0.1 0.1 0.1 0.3 0.1 Effect of amortization of purchased intangible assets on combined ratio 0.3 0.3 0.3 - 0.1 0.1 0.1 0.3 0.1 Discontinued Lines and Coverages Underwriting Summary Premiums written $ - $ - $ - $ 1 $ 2 $ - $ - $ - $ 2 Premiums earned $ - $ - $ - $ - $ - $ - $ - $ - $ - Claims and claims expense (88) (3) (2) (3) (99) (2) (1) (93) (102) Operating costs and expenses - (2) - - (1) - (1) (2) (2) Underwriting loss $ (88) $ (5) $ (2) $ (3) $ (100) $ (2) $ (2) $ (95) $ (104) Effect of Discontinued Lines and Coverages on the Property-Liability combined ratio 1.1 0.1 - - 1.3 - 0.1 0.4 0.4 Allstate Protection Underwriting Income (Loss) by Brand Allstate brand $ 536 $ 292 $ 588 $ 793 $ 493 $ (10) $ 171 $ 1,416 $ 654 Esurance brand (19) (26) (10) (21) (41) (37) (25) (55) (103) Encompass brand 29 (12) (33) 29 5 (15) (18) (16) (28) SquareTrade (29) (22) (35) - - - - (86) - Answer Financial - - (1) (2) (2) (2) (1) (1) (5) Underwriting income (loss) $ 517 $ 232 $ 509 $ 799 $ 455 $ (64) $ 127 $ 1,258 $ 518 THE ALLSTATE CORPORATION PROPERTY-LIABILITY UNDERWRITING RESULTS BY AREA OF BUSINESS ($ in millions) Nine months endedThree months ended

16 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Allstate brand (1) Auto $ 5,096 $ 4,925 $ 4,882 $ 4,756 $ 4,940 $ 4,767 $ 4,746 $ 14,903 $ 14,453 Homeowners 1,921 1,847 1,403 1,638 1,869 1,831 1,392 5,171 5,092 Landlord 138 130 120 133 141 133 122 388 396 Renter 86 75 67 68 84 75 67 228 226 Condominium 71 68 55 63 70 67 53 194 190 Other 159 168 126 129 152 153 111 453 416 Other personal lines 454 441 368 393 447 428 353 1,263 1,228 Commercial lines 116 124 123 115 123 135 126 363 384 Other business lines 168 174 173 158 185 183 183 515 551 7,755 7,511 6,949 7,060 7,564 7,344 6,800 22,215 21,708 Esurance brand Auto 427 386 439 382 428 376 439 1,252 1,243 Homeowners 24 20 16 15 16 14 11 60 41 Other personal lines 2 2 2 2 2 2 2 6 6 453 408 457 399 446 392 452 1,318 1,290 Encompass brand Auto 141 148 125 138 153 162 138 414 453 Homeowners 108 112 91 103 121 126 104 311 351 Other personal lines 22 25 20 22 25 27 21 67 73 271 285 236 263 299 315 263 792 877 SquareTrade 104 85 81 - - - - 270 - Allstate Protection 8,583 8,289 7,723 7,722 8,309 8,051 7,515 24,595 23,875 Discontinued Lines and Coverages (2) - - - 1 2 - - - 2 Property-Liability $ 8,583 $ 8,289 $ 7,723 $ 7,723 $ 8,311 $ 8,051 $ 7,515 $ 24,595 $ 23,877 Allstate Protection Auto $ 5,664 $ 5,459 $ 5,446 $ 5,276 $ 5,521 $ 5,305 $ 5,323 $ 16,569 $ 16,149 Homeowners 2,053 1,979 1,510 1,756 2,006 1,971 1,507 5,542 5,484 Other personal lines 478 468 390 417 474 457 376 1,336 1,307 Commercial lines 116 124 123 115 123 135 126 363 384 Other business lines 168 174 173 158 185 183 183 515 551 SquareTrade 104 85 81 - - - - 270 - $ 8,583 $ 8,289 $ 7,723 $ 7,722 $ 8,309 $ 8,051 $ 7,515 $ 24,595 $ 23,875 Non-Proprietary Premiums Ivantage (3) $ 1,609 $ 1,584 $ 1,566 $ 1,544 $ 1,531 $ 1,528 $ 1,504 $ 4,759 $ 4,563 Answer Financial (4) 153 148 153 140 158 150 151 454 459 (1) Canada premiums included in Allstate brand Auto $ 236 $ 228 $ 171 $ 182 $ 220 $ 234 $ 164 $ 635 $ 618 Homeowners 69 65 44 52 64 64 41 178 169 Other personal lines 19 16 12 13 16 16 10 47 42 $ 324 $ 309 $ 227 $ 247 $ 300 $ 314 $ 215 $ 860 $ 829 (2) (3) (4) 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 and nine months ended September 30, 2017 were $28.0 million and $78.3 million, respectively. Represents non-proprietary premiums written for the period. Commissions earned for the three and nine months ended September 30, 2017 were $17.8 million and $53.8 million, respectively. Primarily represents retrospective reinsurance premium recognized when billed. THE ALLSTATE CORPORATION PROPERTY-LIABILITY PREMIUMS WRITTEN BY BRAND ($ in millions) Nine months endedThree months ended

17 Number of Location Number of Location Number of Location locations (7) Total brand (%) (8) specific (%) (9) locations Total brand (%) specific (%) locations Total brand (%) specific (%) Allstate brand Auto (2)(3)(4) 17 0.4 3.0 23 0.7 3.2 18 1.7 (10) 5.3 (10) Homeowners (5)(6) 8 0.5 5.3 3 0.1 2.0 14 1.0 4.2 Esurance brand Auto 16 2.0 5.6 12 1.7 5.6 7 0.7 5.3 Homeowners - - - - - - - - - Encompass brand Auto 8 0.8 4.5 11 2.3 7.5 5 1.4 7.2 Homeowners 6 0.9 6.0 9 2.8 8.9 3 0.2 3.4 Number of Location Number of Location Number of Location locations Total brand (%) specific (%) locations Total brand (%) specific (%) locations Total brand (%) specific (%) Allstate brand Auto (2)(3)(4) 23 1.3 5.6 25 1.0 7.1 35 3.2 6.2 Homeowners (5)(6) 12 0.5 4.7 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) 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 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Includes a rate increase in California in first quarter 2017. Excluding California, Allstate brand auto total brand and location specific rate changes were 1.1% and 4.7% for the three months ended March 31, 2017, respectively. March 31, 2017 December 31, 2016 Three months ended Three months ended Three months ended 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. Impacts of Allstate brand homeowners effective rate changes as a percentage of total brand prior year-end premiums written were 0.6%, 0.1%, 0.9%, 0.6%, 0.6% and 0.5% for the three months ended September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, 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 2 Canadian provinces. Esurance brand homeowners operates in 31 states and 2 Canadian provinces. Encompass brand auto and homeowners operates in 39 states and the District of Columbia. Allstate brand auto rate changes were 4.1%, 4.7%, 7.2%, 7.2%, 7.8% and 8.4% for the trailing twelve months ended September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively. Allstate brand auto rate changes were cumulatively $3.30 billion or 17.8% for the period of 2015 through September 30, 2017. Allstate brand homeowner rate changes were cumulatively $453 million or 6.6% for the period of 2015 through September 30, 2017. THE ALLSTATE CORPORATION PROPERTY-LIABILITY IMPACT OF NET RATE CHANGES APPROVED ON PREMIUMS WRITTEN Three months ended Impacts of Allstate brand auto effective rate changes as a percentage of total brand prior year-end premiums written were 0.4%, 1.8%, 1.1%, 1.1%, 1.5% and 3.4% for the three months ended September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively. Rate changes are included in the effective calculations in the period the rate change is effective for renewal contracts. Three months ended Three months ended June 30, 2017September 30, 2017 (1) September 30, 2016 June 30, 2016 Rate changes include changes approved based on our net cost of reinsurance. These rate changes do not reflect initial rates filed for insurance subsidiaries initially writing business. Based on historical premiums written in those 50 states, the District of Columbia and Canadian provinces, rate changes approved for Allstate brand, Esurance brand and Encompass brand for the three month period ending September 30, 2017 are estimated to total $156 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.

18 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 7,755 $ 7,511 $ 6,949 $ 7,060 $ 7,564 $ 7,344 $ 6,800 $ 22,215 $ 21,708 Net premiums earned Auto $ 4,951 $ 4,883 $ 4,839 $ 4,826 $ 4,793 $ 4,745 $ 4,667 $ 14,673 $ 14,205 Homeowners 1,707 1,691 1,688 1,691 1,683 1,684 1,678 5,086 5,045 Other personal lines 414 411 405 403 399 397 393 1,230 1,189 Commercial lines 124 118 125 123 127 127 129 367 383 Other business lines 146 142 141 145 150 142 143 429 435 Total 7,342 7,245 7,198 7,188 7,152 7,095 7,010 21,785 21,257 Incurred losses Auto $ 3,456 $ 3,441 $ 3,224 $ 3,416 $ 3,610 $ 3,634 $ 3,519 $ 10,121 $ 10,763 Homeowners 988 1,273 1,194 765 893 1,260 1,190 3,455 3,343 Other personal lines 312 258 265 234 236 256 261 835 753 Commercial lines 103 86 96 109 112 135 119 285 366 Other business lines 63 54 52 60 69 64 61 169 194 Total 4,922 5,112 4,831 4,584 4,920 5,349 5,150 14,865 15,419 Expenses Auto $ 1,242 $ 1,236 $ 1,161 $ 1,181 $ 1,134 $ 1,168 $ 1,103 $ 3,639 $ 3,405 Homeowners 400 371 387 396 384 373 377 1,158 1,134 Other personal lines 120 115 112 117 113 106 103 347 322 Commercial lines 36 34 33 34 34 35 38 103 107 Other business lines 86 85 86 83 74 74 68 257 216 Total 1,884 1,841 1,779 1,811 1,739 1,756 1,689 5,504 5,184 Underwriting income (loss) Auto $ 253 $ 206 $ 454 $ 229 $ 49 $ (57) $ 45 $ 913 $ 37 Homeowners 319 47 107 530 406 51 111 473 568 Other personal lines (18) 38 28 52 50 35 29 48 114 Commercial lines (15) (2) (4) (20) (19) (43) (28) (21) (90) Other business lines (3) 3 3 2 7 4 14 3 25 Total 536 292 588 793 493 (10) 171 1,416 654 Loss ratio 67.0 70.6 67.1 63.8 68.8 75.4 73.5 68.2 72.5 Expense ratio 25.7 25.4 24.7 25.2 24.3 24.7 24.1 25.3 24.4 Combined ratio 92.7 96.0 91.8 89.0 93.1 100.1 97.6 93.5 96.9 Loss ratio 67.0 70.6 67.1 63.8 68.8 75.4 73.5 68.2 72.5 Less: effect of catastrophe losses 11.3 12.7 9.8 4.0 6.2 12.9 11.2 11.3 10.0 effect of prior year non-catastrophe reserve reestimates (2.9) (1.1) (1.5) (1.5) - (0.3) 0.3 (1.9) - Underlying loss ratio * 58.6 59.0 58.8 61.3 62.6 62.8 62.0 58.8 62.5 Expense ratio 25.7 25.4 24.7 25.2 24.3 24.7 24.1 25.3 24.4 Less: effect of amortization of purchased intangible assets - - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 25.7 25.4 24.7 25.2 24.3 24.7 24.1 25.3 24.4 Reconciliation of combined ratio to underlying combined ratio Combined ratio 92.7 96.0 91.8 89.0 93.1 100.1 97.6 93.5 96.9 Effect of catastrophe losses (11.3) (12.7) (9.8) (4.0) (6.2) (12.9) (11.2) (11.3) (10.0) Effect of prior year non-catastrophe reserve reestimates 2.9 1.1 1.5 1.5 - 0.3 (0.3) 1.9 - Effect of amortization of purchased intangible assets - - - - - - - - - Underlying combined ratio * 84.3 84.4 83.5 86.5 86.9 87.5 86.1 84.1 86.9 Effect of prior year reserve reestimates on combined ratio (3.0) (1.1) (1.5) (1.6) - - 0.2 (1.9) 0.1 Effect of advertising expenses on combined ratio 2.0 1.8 2.0 2.4 2.2 2.2 1.5 2.0 2.0 THE ALLSTATE CORPORATION ALLSTATE BRAND PROFITABILITY MEASURES ($ in millions) Nine months endedThree months ended

19 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 New Issued Applications (in thousands) (2) Auto (3) 651 639 610 562 584 582 584 1,900 1,750 Homeowners (4) 198 195 163 167 188 193 164 556 545 Average Premium - Gross Written ($) (5) Auto 556 544 538 537 532 516 507 546 518 Homeowners 1,203 1,192 1,187 1,181 1,181 1,171 1,174 1,194 1,176 Average Premium - Net Earned ($) (6) Auto 507 499 492 487 479 471 461 499 470 Homeowners 1,119 1,106 1,106 1,105 1,099 1,090 1,082 1,110 1,090 Renewal Ratio (%) (7) Auto (8) 87.7 87.4 87.4 87.4 87.5 88.0 88.0 87.5 87.9 Homeowners (9) 87.5 87.0 87.1 87.5 87.9 87.8 88.1 87.2 87.9 Auto Claim Frequency (10) (% change year-over-year) Bodily Injury Gross (5.6) (4.7) (6.0) (2.0) 0.3 2.8 1.1 (5.5) 1.4 Bodily Injury Paid (11) (9.1) (23.7) (20.5) (19.2) (19.6) 1.5 5.9 (18.5) (4.0) Property Damage Gross (8.0) (5.2) (3.9) 1.2 3.9 5.6 2.1 (5.7) 3.8 Property Damage Paid (12) (9.0) (3.4) (3.2) (1.2) 0.1 (0.1) 2.4 (5.2) 0.8 Auto Paid Claim Severity (13) (% change year-over-year) Bodily injury (11) 15.0 28.3 25.1 18.8 12.4 (2.3) (5.5) 23.3 0.7 Property damage 4.9 1.6 4.8 1.9 1.9 5.3 7.5 3.8 4.8 Homeowners Excluding Catastrophe Losses (% change year-over-year) Gross Claim frequency (10) (2.6) 6.0 7.6 2.2 5.2 (12.5) (7.7) 3.3 (5.1) Paid Claim frequency (10) (5.4) 7.1 2.3 (0.5) 0.7 (14.3) (2.0) 1.0 (5.4) Paid Claim severity 8.1 (0.2) 4.1 1.8 (0.5) 4.7 (2.7) 4.1 0.6 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 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. 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. Bodily injury claim process changes in the second half of 2016 related to enhanced documentation of injuries and related medical treatments are having a related impact on paid claim frequency and severity due to payment mix and claim closure patterns. These process changes were implemented through the second half of 2016 and normalized during the first half of 2017 and the related impacts on the percent change in paid claim frequency and severity have begun to moderate in third quarter 2017. 6 and 3 of our largest 10 states experienced increases in the renewal ratio in the third quarter and first nine months of 2017, respectively, compared to the same periods of 2016. Of our largest 10 states, 3 and 2 experienced an increase in the renewal ratio in the third quarter and first nine months of 2017, respectively, compared to the same periods of 2016. 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 percent change in paid claim severity is calculated as the amount of increase or decrease in paid claim severity in the current period compared to the same period in the prior year; divided by the prior year paid claims severity. 47 states experienced a year over year decrease in property damage paid claim frequency in third quarter 2017 compared to third quarter 2016. THE ALLSTATE CORPORATION ALLSTATE BRAND STATISTICS (1) Nine months endedThree months ended Statistics presented for Allstate brand exclude excess and surplus lines. New Issued Applications: Item counts of automobiles or homeowners insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate Protection brand. Allstate brand includes automobiles added by existing customers when they exceed the number allowed (currently 10) 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. 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. 41 states, including all of our 10 largest states, experienced increases in new issued applications in the third quarter of 2017 compared to the same period of 2016. 40 states, including 8 of our 10 largest states, experienced increases in new issued applications in the first nine months of 2017 compared to the same period of 2016. Of our largest 10 states, 6 experienced increases in new issued applications in both the third quarter and first nine months of 2017 compared to the same periods of 2016.

20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Change in auto claim frequency (2) (% change in frequency rate year over year) % Change in gross claim frequency -2.9% 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% -6.0% -4.7% -5.6% % Change in paid claim frequency (3) -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% -20.5% -23.7% -9.1% (1) (2) (3) Bodily injury claim process changes in the second half of 2016 related to enhanced documentation of injuries and related medical treatments are having a related impact on paid claim frequency and severity due to payment mix and claim closure patterns. These process changes were implemented through the second half of 2016 and normalized during the first half of 2017 and the related impacts on the percent change in paid claim frequency and severity have begun to moderate in third quarter 2017. THE ALLSTATE CORPORATION ALLSTATE BRAND AUTO CLAIM FREQUENCY ANALYSIS (1) BODILY INJURY % CHANGE IN GROSS AND PAID CLAIM FREQUENCY Frequency statistics exclude counts associated with catastrophe events. 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. 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. 20172012 2013 2014 2015 2016 -28.0% -24.0% -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 2012 2013 2014 2015 2016 2017 % 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

21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Change in auto claim frequency (2) (% change in frequency rate year over year) % Change in gross claim frequency -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% -3.9% -5.2% -8.0% % Change in paid claim frequency -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% -3.2% -3.4% -9.0% (1) (2) THE ALLSTATE CORPORATION ALLSTATE BRAND AUTO CLAIM FREQUENCY ANALYSIS (1) PROPERTY DAMAGE % CHANGE IN GROSS AND PAID CLAIM FREQUENCY Frequency statistics exclude counts associated with catastrophe events. 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. 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. 20172012 2013 2014 2015 2016 -10.0% -8.0% -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 2012 2013 2014 2015 2016 2017 % 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

22 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 453 $ 408 $ 457 $ 399 $ 446 $ 392 $ 452 $ 1,318 $ 1,290 Net premiums earned Auto $ 411 $ 411 $ 403 $ 408 $ 405 $ 403 $ 394 $ 1,225 $ 1,202 Homeowners 19 16 14 13 11 10 8 49 29 Other personal lines 2 2 2 2 2 2 2 6 6 Total 432 429 419 423 418 415 404 1,280 1,237 Incurred losses Auto $ 322 $ 324 $ 300 $ 310 $ 313 $ 308 $ 289 $ 946 $ 910 Homeowners 14 21 13 8 11 10 4 48 25 Other personal lines 1 1 1 1 2 1 1 3 4 Total 337 346 314 319 326 319 294 997 939 Expenses Auto $ 104 $ 100 $ 107 $ 114 $ 111 $ 107 $ 123 $ 311 $ 341 Homeowners 9 8 8 10 22 25 11 25 58 Other personal lines 1 1 - 1 - 1 1 2 2 Total 114 109 115 125 133 133 135 338 401 Underwriting income (loss) Auto (1) $ (15) $ (13) $ (4) $ (16) $ (19) $ (12) $ (18) $ (32) $ (49) Homeowners (4) (13) (7) (5) (22) (25) (7) (24) (54) Other personal lines - - 1 - - - - 1 - Total (19) (26) (10) (21) (41) (37) (25) (55) (103) Loss ratio 78.0 80.7 74.9 75.4 78.0 76.9 72.8 77.9 75.9 Expense ratio 26.4 25.4 27.5 29.6 31.8 32.0 33.4 26.4 32.4 Combined ratio 104.4 106.1 102.4 105.0 109.8 108.9 106.2 104.3 108.3 Loss ratio 78.0 80.7 74.9 75.4 78.0 76.9 72.8 77.9 75.9 Less: effect of catastrophe losses 3.9 5.6 1.9 1.2 3.3 3.4 0.7 3.8 2.5 effect of prior year non-catastrophe reserve reestimates (0.2) - - (2.1) (1.0) (1.0) (1.0) (0.1) (1.0) Underlying loss ratio * 74.3 75.1 73.0 76.3 75.7 74.5 73.1 74.2 74.4 Expense ratio 26.4 25.4 27.5 29.6 31.8 32.0 33.4 26.4 32.4 Less: effect of amortization of purchased intangible assets 0.2 - 0.3 0.9 1.5 1.7 1.5 0.2 1.5 Expense ratio, excluding the effect of amortization of purchased intangible assets 26.2 25.4 27.2 28.7 30.3 30.3 31.9 26.2 30.9 Reconciliation of combined ratio to underlying combined ratio Combined ratio (1) 104.4 106.1 102.4 105.0 109.8 108.9 106.2 104.3 108.3 Effect of catastrophe losses (3.9) (5.6) (1.9) (1.2) (3.3) (3.4) (0.7) (3.8) (2.5) Effect of prior year non-catastrophe reserve reestimates 0.2 - - 2.1 1.0 1.0 1.0 0.1 1.0 Effect of amortization of purchased intangible assets (0.2) - (0.3) (0.9) (1.5) (1.7) (1.5) (0.2) (1.5) Underlying combined ratio * 100.5 100.5 100.2 105.0 106.0 104.8 105.0 100.4 105.3 Effect of prior year reserve reestimates on combined ratio (0.2) (0.2) - (2.1) (1.0) (1.0) (1.0) (0.2) (1.0) Effect of advertising expenses on combined ratio 9.3 8.6 8.6 9.2 11.7 12.2 11.6 8.8 11.9 Policies in Force (in thousands) Auto 1,369 1,388 1,400 1,391 1,395 1,409 1,428 1,369 1,395 Homeowners 76 69 63 58 52 44 37 76 52 Other personal lines 45 47 48 47 47 47 46 45 47 1,490 1,504 1,511 1,496 1,494 1,500 1,511 1,490 1,494 New Issued Applications (in thousands) Auto 116 120 143 137 151 141 168 379 460 Homeowners 10 9 8 9 10 11 7 27 28 Other personal lines 6 7 8 8 9 8 10 21 27 132 136 159 154 170 160 185 427 515 Average Premium - Gross Written ($) Auto 574 564 571 555 546 538 547 570 544 Homeowners 924 910 919 861 872 855 891 919 877 Renewal Ratio (%) Auto 81.8 81.9 80.4 79.3 78.9 80.0 79.6 81.3 79.5 Homeowners (2) 85.8 86.1 83.5 82.9 83.1 83.9 81.6 85.3 83.3 (1) (2) Esurance’s renewal ratios exclude the impact of risk related cancellations. Customers can enter into a policy without a physical inspection. During the underwriting review period, a number of policies may be canceled if upon inspection the condition is unsatisfactory, causing the renewal ratio to appear lower. Auto underwriting income includes an underwriting loss related to Esurance expansion into Canada of $3 million and $2 million or 0.7 points and 0.5 points on the combined ratio and underlying combined ratio in the third quarter of 2017 and 2016. THE ALLSTATE CORPORATION ESURANCE PROFITABILITY MEASURES AND STATISTICS ($ in millions) Nine months endedThree months ended

23 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 271 $ 285 $ 236 $ 263 $ 299 $ 315 $ 263 $ 792 $ 877 Net premiums earned Auto $ 140 $ 143 $ 146 $ 151 $ 155 $ 158 $ 159 $ 429 $ 472 Homeowners 106 108 113 115 119 121 124 327 364 Other personal lines 23 23 24 24 25 25 26 70 76 Total 269 274 283 290 299 304 309 826 912 Incurred losses Auto $ 91 $ 105 $ 104 $ 104 $ 117 $ 130 $ 123 $ 300 $ 370 Homeowners 54 84 108 60 74 85 85 246 244 Other personal lines 13 10 21 13 17 16 31 44 64 Total 158 199 233 177 208 231 239 590 678 Expenses Auto $ 43 $ 46 $ 43 $ 44 $ 44 $ 45 $ 45 $ 132 $ 134 Homeowners 32 34 33 33 34 36 36 99 106 Other personal lines 7 7 7 7 8 7 7 21 22 Total 82 87 83 84 86 88 88 252 262 Underwriting income (loss) Auto $ 6 $ (8) $ (1) $ 3 $ (6) $ (17) $ (9) $ (3) $ (32) Homeowners 20 (10) (28) 22 11 - 3 (18) 14 Other personal lines 3 6 (4) 4 - 2 (12) 5 (10) Total 29 (12) (33) 29 5 (15) (18) (16) (28) Loss ratio 58.7 72.6 82.4 61.0 69.6 76.0 77.3 71.4 74.4 Expense ratio 30.5 31.8 29.3 29.0 28.7 28.9 28.5 30.5 28.7 Combined ratio 89.2 104.4 111.7 90.0 98.3 104.9 105.8 101.9 103.1 Loss ratio 58.7 72.6 82.4 61.0 69.6 76.0 77.3 71.4 74.4 Less: effect of catastrophe losses 4.5 19.0 23.7 3.1 9.0 11.2 13.3 15.8 11.2 effect of prior year non-catastrophe reserve reestimates (0.8) (2.2) 1.4 (3.8) - 0.9 4.2 (0.5) 1.8 Underlying loss ratio * 55.0 55.8 57.3 61.7 60.6 63.9 59.8 56.1 61.4 Expense ratio 30.5 31.8 29.3 29.0 28.7 28.9 28.5 30.5 28.7 Less: effect of amortization of purchased intangible assets - - - - - - - - - Expense ratio, excluding the effect of amortization of purchased intangible assets 30.5 31.8 29.3 29.0 28.7 28.9 28.5 30.5 28.7 Reconciliation of combined ratio to underlying combined ratio Combined ratio 89.2 104.4 111.7 90.0 98.3 104.9 105.8 101.9 103.1 Effect of catastrophe losses (4.5) (19.0) (23.7) (3.1) (9.0) (11.2) (13.3) (15.8) (11.2) Effect of prior year non-catastrophe reserve reestimates 0.8 2.2 (1.4) 3.8 - (0.9) (4.2) 0.5 (1.8) Underlying combined ratio * 85.5 87.6 86.6 90.7 89.3 92.8 88.3 86.6 90.1 Effect of prior year reserve reestimates on combined ratio (0.8) (2.9) 2.1 (3.8) 0.3 0.3 4.5 (0.5) 1.8 Effect of advertising expenses on combined ratio 0.4 - - 0.3 - 0.3 - 0.1 0.1 Policies in Force (in thousands) Auto 548 571 595 622 649 676 701 548 649 Homeowners 262 273 284 295 305 318 329 262 305 Other personal lines 88 91 94 98 101 105 108 88 101 898 935 973 1,015 1,055 1,099 1,138 898 1,055 New Issued Applications (in thousands) Auto 13 13 12 11 13 15 15 38 43 Homeowners 8 8 7 7 9 9 9 23 27 Average Premium - Gross Written ($) Auto 1,087 1,065 1,057 1,043 1,022 988 981 1,070 997 Homeowners 1,703 1,667 1,659 1,650 1,659 1,629 1,618 1,677 1,636 Renewal Ratio (%) Auto 72.0 74.2 73.1 73.1 73.1 75.5 76.1 73.2 74.9 Homeowners 77.7 78.7 78.2 78.3 77.9 79.9 81.5 78.2 79.7 THE ALLSTATE CORPORATION ENCOMPASS BRAND PROFITABILITY MEASURES AND STATISTICS ($ in millions) Nine months endedThree months ended

24 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 104 $ 85 $ 81 $ - $ - $ - $ - $ 270 $ - Net premiums earned $ 78 $ 70 $ 59 $ - $ - $ - $ - $ 207 $ - Claims and claims expense $ (40) $ (29) (2) $ (36) $ - $ - $ - $ - $ (105) $ - Amortization of deferred policy acquisition costs $ (11) $ (10) $ (8) $ - $ - $ - $ - $ (29) $ - Other costs and expenses (33) (30) (27) - - - - (90) - Amortization of purchased intangible assets (23) (23) (23) - - - - (69) - Expenses (67) (63) (58) - - - - (188) - Underwriting loss $ (29) $ (22) $ (35) $ - $ - $ - $ - $ (86) $ - Net investment income - - - - - - - - - Realized capital gains and losses - - - - - - - - - Income tax benefit 10 8 12 - - - - 30 - Net loss applicable to common shareholders $ (19) $ (14) $ (23) $ - $ - $ - $ - $ (56) $ - Realized capital gains and losses, after-tax - - - - - - - - - Amortization of purchased intangible assets, after-tax 15 15 15 - - - - 45 - Operating (loss) income * $ (4) $ 1 $ (8) $ - $ - $ - $ - $ (11) $ - Fair value adjustments, after-tax (3) 2 3 4 - - - - 9 - Adjusted SquareTrade operating (loss) income * $ (2) $ 4 $ (4) $ - $ - $ - $ - $ (2) $ - Protection Plans in Force (in thousands) (4) (5) 34,078 31,258 29,907 - - - - 34,078 - New Issued Protection Plans (in thousands) (6) 5,122 3,586 3,840 - - - - 12,548 - (1) (2) (3) (4) (5) (6) Protection plan terms generally range between one and five years with an average term of three years. SquareTrade had new issued protection plans of 5.1, 2.8, 2.6 and 2.4 million at December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. These numbers are prior to the acquisition of SquareTrade on January 3, 2017 and are not reflected in the periods above. THE ALLSTATE CORPORATION SQUARETRADE PROFITABILITY MEASURES (1) ($ in millions) Three months ended Nine months ended SquareTrade was acquired on January 3, 2017 and is only included for the quarters and year-to-date periods of 2017. In connection with the acquisition, purchase accounting adjustments were made to recognize the acquired assets and liabilities at their fair value. The Company recorded unearned premiums of $373 million, which was reduced by $48 million, and the Company recorded contractual liability insurance policy premium expenses (reported in other assets) of $201 million and commissions paid to retailers (reported in deferred policy acquisition costs) of $70 million, which were reduced $15 million, respectively. Unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers recorded as of the acquisition date are earned over the life of the in force contracts or approximately three years. SquareTrade had PIF of 28.5, 25.8, 24.4 and 23.0 million at December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. These numbers are prior to the acquisition of SquareTrade on January 3, 2017 and are not reflected in the periods above. Includes a $6 million favorable adjustment for loss experience.

25 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Allstate brand auto Net premiums written $ 5,096 $ 4,925 $ 4,882 $ 4,756 $ 4,940 $ 4,767 $ 4,746 $ 14,903 $ 14,453 Net premiums earned $ 4,951 $ 4,883 $ 4,839 $ 4,826 $ 4,793 $ 4,745 $ 4,667 $ 14,673 $ 14,205 Incurred losses (3,456) (3,441) (3,224) (3,416) (3,610) (3,634) (3,519) (10,121) (10,763) Expenses (1,242) (1,236) (1,161) (1,181) (1,134) (1,168) (1,103) (3,639) (3,405) Underwriting income (loss) $ 253 $ 206 $ 454 $ 229 $ 49 $ (57) $ 45 $ 913 $ 37 Loss ratio 69.8 70.5 66.6 70.8 75.3 76.6 75.4 69.0 75.8 Less: effect of catastrophe losses 7.4 4.2 1.3 1.2 3.1 4.1 2.9 4.4 3.4 effect of prior year non-catastrophe reserve reestimates (3.7) (1.2) (1.6) (2.0) - (0.7) 0.2 (2.2) (0.2) Underlying loss ratio * 66.1 67.5 66.9 71.6 72.2 73.2 72.3 66.8 72.6 Expense ratio 25.1 25.3 24.0 24.5 23.7 24.6 23.6 24.8 23.9 Combined ratio 94.9 95.8 90.6 95.3 99.0 101.2 99.0 93.8 99.7 Effect of catastrophe losses (7.4) (4.2) (1.3) (1.2) (3.1) (4.1) (2.9) (4.4) (3.4) Effect of prior year non-catastrophe reserve reestimates 3.7 1.2 1.6 2.0 - 0.7 (0.2) 2.2 0.2 Underlying combined ratio * 91.2 92.8 90.9 96.1 95.9 97.8 95.9 91.6 96.5 Esurance brand auto Net premiums written $ 427 $ 386 $ 439 $ 382 $ 428 $ 376 $ 439 $ 1,252 $ 1,243 Net premiums earned $ 411 $ 411 $ 403 $ 408 $ 405 $ 403 $ 394 $ 1,225 $ 1,202 Incurred losses (322) (324) (300) (310) (313) (308) (289) (946) (910) Expenses (104) (100) (107) (114) (111) (107) (123) (311) (341) Underwriting income (loss) $ (15) $ (13) $ (4) $ (16) $ (19) $ (12) $ (18) $ (32) $ (49) Loss ratio 78.3 78.9 74.4 76.0 77.3 76.4 73.4 77.2 75.7 Less: effect of catastrophe losses 3.6 3.6 1.0 1.0 2.2 2.2 0.5 2.8 1.7 effect of prior year non-catastrophe reserve reestimates - 0.3 - (2.2) (1.0) (1.0) (1.0) - (1.0) Underlying loss ratio * 74.7 75.0 73.4 77.2 76.1 75.2 73.9 74.4 75.0 Expense ratio 25.3 24.3 26.6 27.9 27.4 26.6 31.2 25.4 28.4 Combined ratio 103.6 103.2 101.0 103.9 104.7 103.0 104.6 102.6 104.1 Effect of catastrophe losses (3.6) (3.6) (1.0) (1.0) (2.2) (2.2) (0.5) (2.8) (1.7) Effect of prior year non-catastrophe reserve reestimates - (0.3) - 2.2 1.0 1.0 1.0 - 1.0 Effect of amortization of purchased intangible assets (0.2) - (0.2) (0.9) (1.5) (1.8) (1.5) (0.2) (1.6) Underlying combined ratio * 99.8 99.3 99.8 104.2 102.0 100.0 103.6 99.6 101.8 Encompass brand auto Net premiums written $ 141 $ 148 $ 125 $ 138 $ 153 $ 162 $ 138 $ 414 $ 453 Net premiums earned $ 140 $ 143 $ 146 $ 151 $ 155 $ 158 $ 159 $ 429 $ 472 Incurred losses (91) (105) (104) (104) (117) (130) (123) (300) (370) Expenses (43) (46) (43) (44) (44) (45) (45) (132) (134) Underwriting income (loss) $ 6 $ (8) $ (1) $ 3 $ (6) $ (17) $ (9) $ (3) $ (32) Loss ratio 65.0 73.4 71.2 68.9 75.5 82.3 77.4 69.9 78.4 Less: effect of catastrophe losses 0.7 4.9 2.8 - 3.3 1.9 1.3 2.8 2.1 effect of prior year non-catastrophe reserve reestimates - - - (2.7) (1.3) 3.8 1.3 - 1.3 Underlying loss ratio * 64.3 68.5 68.4 71.6 73.5 76.6 74.8 67.1 75.0 Expense ratio 30.7 32.2 29.5 29.1 28.4 28.5 28.3 30.8 28.4 Combined ratio 95.7 105.6 100.7 98.0 103.9 110.8 105.7 100.7 106.8 Effect of catastrophe losses (0.7) (4.9) (2.8) - (3.3) (1.9) (1.3) (2.8) (2.1) Effect of prior year non-catastrophe reserve reestimates - - - 2.7 1.3 (3.8) (1.3) - (1.3) Underlying combined ratio * 95.0 100.7 97.9 100.7 101.9 105.1 103.1 97.9 103.4 THE ALLSTATE CORPORATION AUTO PROFITABILITY MEASURES BY BRAND ($ in millions) Three months ended Nine months ended

26 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Allstate brand homeowners Net premiums written $ 1,921 $ 1,847 $ 1,403 $ 1,638 $ 1,869 $ 1,831 $ 1,392 $ 5,171 $ 5,092 Net premiums earned $ 1,707 $ 1,691 $ 1,688 $ 1,691 $ 1,683 $ 1,684 $ 1,678 $ 5,086 $ 5,045 Incurred losses (988) (1,273) (1,194) (765) (893) (1,260) (1,190) (3,455) (3,343) Expenses (400) (371) (387) (396) (384) (373) (377) (1,158) (1,134) Underwriting income (loss) $ 319 $ 47 $ 107 $ 530 $ 406 $ 51 $ 111 $ 473 $ 568 Loss ratio 57.9 75.3 70.8 45.3 53.1 74.8 70.9 67.9 66.2 Less: effect of catastrophe losses 22.4 38.4 34.1 10.8 15.4 38.3 34.2 31.6 29.3 effect of prior year non-catastrophe reserve reestimates (2.3) (1.0) (1.7) (1.2) (0.6) 0.1 (0.2) (1.6) (0.3) Underlying loss ratio * 37.8 37.9 38.4 35.7 38.3 36.4 36.9 37.9 37.2 Expense ratio 23.4 21.9 22.9 23.4 22.8 22.2 22.5 22.8 22.5 Combined ratio 81.3 97.2 93.7 68.7 75.9 97.0 93.4 90.7 88.7 Effect of catastrophe losses (22.4) (38.4) (34.1) (10.8) (15.4) (38.3) (34.2) (31.6) (29.3) Effect of prior year non-catastrophe reserve reestimates 2.3 1.0 1.7 1.2 0.6 (0.1) 0.2 1.6 0.3 Underlying combined ratio * 61.2 59.8 61.3 59.1 61.1 58.6 59.4 60.7 59.7 Esurance brand homeowners Net premiums written $ 24 $ 20 $ 16 $ 15 $ 16 $ 14 $ 11 $ 60 $ 41 Net premiums earned $ 19 $ 16 $ 14 $ 13 $ 11 $ 10 $ 8 $ 49 $ 29 Incurred losses (14) (21) (13) (8) (11) (10) (4) (48) (25) Expenses (9) (8) (8) (10) (22) (25) (11) (25) (58) Underwriting income (loss) $ (4) $ (13) $ (7) $ (5) $ (22) $ (25) $ (7) $ (24) $ (54) Loss ratio 73.7 131.3 92.9 61.6 100.0 100.0 50.0 98.0 86.2 Less: effect of catastrophe losses 10.5 56.3 28.6 7.7 45.5 50.0 12.5 30.6 37.9 effect of prior year non-catastrophe reserve reestimates (5.2) - - - - - - (2.0) - Underlying loss ratio * 68.4 75.0 64.3 53.9 54.5 50.0 37.5 69.4 48.3 Expense ratio 47.4 50.0 57.1 76.9 200.0 250.0 137.5 51.0 200.0 Combined ratio 121.1 181.3 150.0 138.5 300.0 350.0 187.5 149.0 286.2 Effect of catastrophe losses (10.5) (56.3) (28.6) (7.7) (45.5) (50.0) (12.5) (30.6) (37.9) Effect of prior year non-catastrophe reserve reestimates 5.2 - - - - - - 2.0 - Underlying combined ratio * 115.8 125.0 121.4 130.8 254.5 300.0 175.0 120.4 248.3 Encompass brand homeowners Net premiums written $ 108 $ 112 $ 91 $ 103 $ 121 $ 126 $ 104 $ 311 $ 351 Net premiums earned $ 106 $ 108 $ 113 $ 115 $ 119 $ 121 $ 124 $ 327 $ 364 Incurred losses (54) (84) (108) (60) (74) (85) (85) (246) (244) Expenses (32) (34) (33) (33) (34) (36) (36) (99) (106) Underwriting income (loss) $ 20 $ (10) $ (28) $ 22 $ 11 $ - $ 3 $ (18) $ 14 Loss ratio 50.9 77.8 95.6 52.2 62.2 70.2 68.6 75.2 67.1 Less: effect of catastrophe losses 10.3 38.9 54.0 7.8 17.6 24.0 30.7 34.9 24.2 effect of prior year non-catastrophe reserve reestimates - - 0.9 (2.6) 0.9 0.8 (0.8) 0.3 0.3 Underlying loss ratio * 40.6 38.9 40.7 47.0 43.7 45.4 38.7 40.0 42.6 Expense ratio 30.2 31.5 29.2 28.7 28.6 29.8 29.0 30.3 29.1 Combined ratio 81.1 109.3 124.8 80.9 90.8 100.0 97.6 105.5 96.2 Effect of catastrophe losses (10.3) (38.9) (54.0) (7.8) (17.6) (24.0) (30.7) (34.9) (24.2) Effect of prior year non-catastrophe reserve reestimates - - (0.9) 2.6 (0.9) (0.8) 0.8 (0.3) (0.3) Underlying combined ratio * 70.8 70.4 69.9 75.7 72.3 75.2 67.7 70.3 71.7 THE ALLSTATE CORPORATION HOMEOWNERS PROFITABILITY MEASURES BY BRAND ($ in millions) Three months ended Nine months ended

27 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Allstate brand other personal lines Net premiums written $ 454 $ 441 $ 368 $ 393 $ 447 $ 428 $ 353 $ 1,263 $ 1,228 Net premiums earned $ 414 $ 411 $ 405 $ 403 $ 399 $ 397 $ 393 $ 1,230 $ 1,189 Incurred losses (312) (258) (265) (234) (236) (256) (261) (835) (753) Expenses (120) (115) (112) (117) (113) (106) (103) (347) (322) Underwriting income (loss) $ (18) $ 38 $ 28 $ 52 $ 50 $ 35 $ 29 $ 48 $ 114 Loss ratio 75.3 62.8 65.4 58.1 59.2 64.5 66.4 67.9 63.3 Less: effect of catastrophe losses 15.7 13.9 14.6 9.7 6.0 15.6 16.0 14.7 12.5 effect of prior year non-catastrophe reserve reestimates 0.7 (0.2) (0.3) 0.7 (0.5) (1.7) (1.5) 0.1 (1.2) Underlying loss ratio * 58.9 49.1 51.1 47.7 53.7 50.6 51.9 53.1 52.0 Expense ratio 29.0 28.0 27.7 29.0 28.3 26.7 26.2 28.2 27.1 Combined ratio 104.3 90.8 93.1 87.1 87.5 91.2 92.6 96.1 90.4 Effect of catastrophe losses (15.7) (13.9) (14.6) (9.7) (6.0) (15.6) (16.0) (14.7) (12.5) Effect of prior year non-catastrophe reserve reestimates (0.7) 0.2 0.3 (0.7) 0.5 1.7 1.5 (0.1) 1.2 Underlying combined ratio * 87.9 77.1 78.8 76.7 82.0 77.3 78.1 81.3 79.1 Esurance brand other personal lines Net premiums written $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 6 $ 6 Net premiums earned $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 6 $ 6 Incurred losses (1) (1) (1) (1) (2) (1) (1) (3) (4) Expenses (1) (1) - (1) - (1) (1) (2) (2) Underwriting income (loss) $ - $ - $ 1 $ - $ - $ - $ - $ 1 $ - Loss ratio 50.0 50.0 50.0 50.0 100.0 50.0 50.0 50.0 66.7 Less: effect of catastrophe losses - - - - - - - - - effect of prior year non-catastrophe reserve reestimates - (50.0) - - - - - (16.7) - Underlying loss ratio * 50.0 100.0 50.0 50.0 100.0 50.0 50.0 66.7 66.7 Expense ratio 50.0 50.0 - 50.0 - 50.0 50.0 33.3 33.3 Combined ratio 100.0 100.0 50.0 100.0 100.0 100.0 100.0 83.3 100.0 Effect of catastrophe losses - - - - - - - - - Effect of prior year non-catastrophe reserve reestimates - 50.0 - - - - - 16.7 - Underlying combined ratio * 100.0 150.0 50.0 100.0 100.0 100.0 100.0 100.0 100.0 Encompass brand other personal lines Net premiums written $ 22 $ 25 $ 20 $ 22 $ 25 $ 27 $ 21 $ 67 $ 73 Net premiums earned $ 23 $ 23 $ 24 $ 24 $ 25 $ 25 $ 26 $ 70 $ 76 Incurred losses (13) (10) (21) (13) (17) (16) (31) (44) (64) Expenses (7) (7) (7) (7) (8) (7) (7) (21) (22) Underwriting income (loss) $ 3 $ 6 $ (4) $ 4 $ - $ 2 $ (12) $ 5 $ (10) Loss ratio 56.5 43.5 87.5 54.1 68.0 64.0 119.3 62.9 84.2 Less: effect of catastrophe losses - 13.0 8.3 - 4.0 8.0 3.8 7.1 5.3 effect of prior year non-catastrophe reserve reestimates (8.7) (26.1) 12.6 (16.7) 4.0 (16.0) 46.2 (7.1) 11.8 Underlying loss ratio * 65.2 56.6 66.6 70.8 60.0 72.0 69.3 62.9 67.1 Expense ratio 30.5 30.4 29.2 29.2 32.0 28.0 26.9 30.0 29.0 Combined ratio 87.0 73.9 116.7 83.3 100.0 92.0 146.2 92.9 113.2 Effect of catastrophe losses - (13.0) (8.3) - (4.0) (8.0) (3.8) (7.1) (5.3) Effect of prior year non-catastrophe reserve reestimates 8.7 26.1 (12.6) 16.7 (4.0) 16.0 (46.2) 7.1 (11.8) Underlying combined ratio * 95.7 87.0 95.8 100.0 92.0 100.0 96.2 92.9 96.1 (1) Other personal lines include renter, condominium, landlord and other personal lines products. THE ALLSTATE CORPORATION OTHER PERSONAL LINES PROFITABILITY MEASURES BY BRAND (1) ($ in millions) Three months ended Nine months ended

28 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, ($ in millions) 2017 2017 2017 2016 2016 2016 2016 2017 2016 Net premiums written $ 116 $ 124 $ 123 $ 115 $ 123 $ 135 $ 126 $ 363 $ 384 Net premiums earned $ 124 $ 118 $ 125 $ 123 $ 127 $ 127 $ 129 $ 367 $ 383 Incurred losses $ 103 $ 86 $ 96 $ 109 $ 112 $ 135 $ 119 $ 285 $ 366 Expenses $ 36 $ 34 $ 33 $ 34 $ 34 $ 35 $ 38 $ 103 $ 107 Underwriting loss $ (15) $ (2) $ (4) $ (20) $ (19) $ (43) $ (28) $ (21) $ (90) Loss ratio 83.1 72.9 76.8 88.6 88.2 106.3 92.2 77.6 95.6 Expense ratio 29.0 28.8 26.4 27.7 26.8 27.6 29.5 28.1 27.9 Combined ratio 112.1 101.7 103.2 116.3 115.0 133.9 121.7 105.7 123.5 Effect of catastrophe losses on combined ratio 10.5 1.7 5.6 5.7 5.5 9.5 7.0 6.0 7.3 Effect of prior year reserve reestimates on combined ratio 5.6 (1.7) 1.6 4.9 10.3 18.1 15.5 1.9 14.6 Effect of catastrophe losses included in prior year reserve reestimates on combined ratio 0.8 (0.9) 0.8 0.8 - 0.8 2.4 0.3 1.0 (1) Commercial lines are all Allstate brand products. THE ALLSTATE CORPORATION COMMERCIAL LINES PROFITABILITY MEASURES (1) Nine months endedThree months ended

29 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, ($ in millions) 2017 2017 2017 2016 2016 2016 2016 2017 2016 Other Business Lines Net premiums written $ 168 $ 174 $ 173 $ 158 $ 185 $ 183 $ 183 $ 515 $ 551 Net premiums earned $ 146 $ 142 $ 141 $ 145 $ 150 $ 142 $ 143 $ 429 $ 435 Incurred losses (63) (54) (52) (60) (69) (64) (61) (169) (194) Expenses (86) (85) (86) (83) (74) (74) (68) (257) (216) Underwriting (loss) income (2) $ (3) $ 3 $ 3 $ 2 $ 7 $ 4 $ 14 $ 3 $ 25 Operating ratios Loss ratio 43.2 38.0 36.9 41.4 46.0 45.1 42.7 39.4 44.6 Expense ratio 58.9 59.9 61.0 57.2 49.3 52.1 47.5 59.9 49.7 Combined ratio 102.1 97.9 97.9 98.6 95.3 97.2 90.2 99.3 94.3 Effect of catastrophe losses on combined ratio 3.4 - - 0.7 - - - 1.2 - Effect of prior year reserve reestimates on combined ratio 0.7 - - 0.7 2.0 - - 0.2 0.7 Effect of amortization of purchased intangible assets 0.7 - 0.7 0.6 0.6 0.7 0.7 0.5 0.7 Allstate Roadside Services Net premiums written $ 68 $ 66 $ 69 $ 67 $ 79 $ 77 $ 77 $ 203 $ 233 Net premiums earned $ 69 $ 67 $ 68 $ 74 $ 81 $ 78 $ 77 $ 204 $ 236 Incurred losses (36) (33) (31) (38) (48) (42) (40) (100) (130) Expenses (40) (42) (42) (42) (43) (38) (37) (124) (118) Underwriting (loss) income $ (7) $ (8) $ (5) $ (6) $ (10) $ (2) $ - $ (20) $ (12) Operating ratios Loss ratio 52.2 49.2 45.6 51.3 59.2 53.9 51.9 49.0 55.1 Expense ratio 57.9 62.7 61.8 56.8 53.1 48.7 48.1 60.8 50.0 Combined ratio 110.1 111.9 107.4 108.1 112.3 102.6 100.0 109.8 105.1 Allstate Dealer Services Net premiums written $ 100 $ 108 $ 104 $ 91 $ 106 $ 106 $ 106 $ 312 $ 318 Net premiums earned $ 77 $ 75 $ 73 $ 71 $ 69 $ 64 $ 66 $ 225 $ 199 Incurred losses (27) (21) (21) (22) (21) (22) (21) (69) (64) Expenses (60) (55) (55) (52) (48) (49) (43) (170) (140) Underwriting (loss) income $ (10) $ (1) $ (3) $ (3) $ - $ (7) $ 2 $ (14) $ (5) Operating ratios Loss ratio 35.1 28.0 28.8 31.0 30.4 34.4 31.8 30.7 32.2 Expense ratio 77.9 73.3 75.3 73.2 69.6 76.5 65.2 75.5 70.3 Combined ratio 113.0 101.3 104.1 104.2 100.0 110.9 97.0 106.2 102.5 (1) (2) THE ALLSTATE CORPORATION OTHER BUSINESS LINES PROFITABILITY MEASURES (1) Nine months endedThree months ended Other business lines primarily include Allstate Roadside Services, Allstate Dealer Services, Arity and Ivantage. Includes Ivantage underwriting gain of $14 million, $12 million, $11 million, $11 million, $17 million, $13 million and $12 million in the three months ended September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.

30 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2017 2016 2016 2016 2016 Auto Annualized average premium (1) $ 1,015 $ 999 $ 989 $ 978 $ 966 $ 946 $ 927 Underlying combined ratio * 91.2 92.8 90.9 96.1 95.9 97.8 95.9 Average underlying loss (incurred pure premium) and expense * $ 926 $ 927 $ 899 $ 940 $ 926 $ 925 $ 889 Homeowners Annualized average premium $ 1,125 $ 1,117 $ 1,112 $ 1,109 $ 1,102 $ 1,098 $ 1,091 Underlying combined ratio * 61.2 59.8 61.3 59.1 61.1 58.6 59.4 Average underlying loss (incurred pure premium) and expense * $ 689 $ 668 $ 682 $ 655 $ 673 $ 643 $ 648 (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

31 Annual impact of Effect of rate changes Earned Incurred Catastrophe catastrophes Number of Number of on state specific Primary Exposure Groupings (1) premiums losses Loss ratios losses on loss ratio catastrophes locations premiums written Florida $ 77 $ 74 96.1% $ 30 39.0% Other hurricane exposure locations 2,960 1,972 66.6% 972 32.8% Total hurricane exposure locations (2) 3,037 2,046 67.4% 1,002 33.0% 13 4.9% Other catastrophe exposure locations (4) 2,425 1,703 70.2% 735 30.3% 21 3.9% Total $ 5,462 $ 3,749 68.6% $ 1,737 31.8% 91 34 4.6% (1) Basis of Presentation (2) (3) (4) Includes Canada. 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 a coastal location that have the potential to have significant hurricane losses. The catastrophe losses for these states also include losses due to other kinds of catastrophes. A catastrophe is defined by Allstate as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or a winter weather event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. Premium rate changes (3) Hurricane exposure states include the following coastal locations: Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and Washington, D.C. Nine months ended September 30, 2017

32 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Allstate brand Auto $ 366 $ 208 $ 65 $ 59 $ 150 $ 195 $ 137 $ 639 $ 482 Homeowners 383 650 575 183 259 644 574 1,608 1,477 Other personal lines 65 57 59 39 24 62 63 181 149 Commercial lines 13 2 7 7 7 12 9 22 28 Other business lines 5 - - 1 - - - 5 - Total 832 917 706 289 440 913 783 2,455 2,136 Esurance brand Auto 15 15 4 4 9 9 2 34 20 Homeowners 2 9 4 1 5 5 1 15 11 Other personal lines - - - - - - - - - Total 17 24 8 5 14 14 3 49 31 Encompass brand Auto 1 7 4 - 5 3 2 12 10 Homeowners 11 42 61 9 21 29 38 114 88 Other personal lines - 3 2 - 1 2 1 5 4 Total 12 52 67 9 27 34 41 131 102 Allstate Protection $ 861 $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 2,635 $ 2,269 Allstate Protection Auto $ 382 $ 230 $ 73 $ 63 $ 164 $ 207 $ 141 $ 685 $ 512 Homeowners 396 701 640 193 285 678 613 1,737 1,576 Other personal lines 65 60 61 39 25 64 64 186 153 Commercial lines 13 2 7 7 7 12 9 22 28 Other business lines 5 - - 1 - - - 5 - Total $ 861 $ 993 $ 781 $ 303 $ 481 $ 961 $ 827 $ 2,635 $ 2,269 THE ALLSTATE CORPORATION CATASTROPHE LOSSES BY BRAND ($ in millions) Nine months endedThree months ended

33 Average Number Claims and Combined catastrophe Size of catastrophe of events claims expense ratio impact loss per event Greater than $250 million 1 4.5 % $ 507 58.9 % 6.2 $ 507 $101 million to $250 million 1 4.5 134 15.6 1.7 134 $50 million to $100 million - - - - - - Less than $50 million 20 91.0 188 21.8 2.3 9 Total 22 100.0 % 829 96.3 10.2 38 Prior year reserve reestimates (7) (0.8) (0.1) Prior quarter reserve reestimates 39 4.5 0.5 Total catastrophe losses $ 861 100.0 % 10.6 Average Number Claims and Combined catastrophe Size of catastrophe of events claims expense ratio impact loss per event Greater than $250 million 1 1.1 % $ 507 19.2 % 2.1 $ 507 $101 million to $250 million 4 4.4 695 26.4 2.9 174 $50 million to $100 million 7 7.7 465 17.7 1.9 66 Less than $50 million 79 86.8 978 37.1 4.1 12 Total 91 100.0 % 2,645 100.4 11.0 29 Prior year reserve reestimates (10) (0.4) - Total catastrophe losses $ 2,635 100.0 % 11.0 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 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 2017 9.8 12.4 10.6 24,098 2,635 1,987 10.9 Average 7.1 13.9 8.8 5.0 8.6 7.8 ($ in millions) THE ALLSTATE CORPORATION CATASTROPHE EXPERIENCE CATASTROPHE BY SIZE OF EVENT combined ratio Three months ended September 30, 2017 EFFECT OF CATASTROPHE LOSSES ON THE COMBINED RATIO Excludes the effect of catastrophe losses relating to earthquakes and hurricanes Effect of all catastrophe losses on the Property-Liability Nine months ended September 30, 2017

34 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Prior Year Reserve Reestimates (1) Auto $ (189) $ (61) $ (86) $ (114) $ (10) $ (36) $ 5 $ (336) $ (41) Homeowners (42) (20) (24) (32) (4) 19 (7) (86) 8 Other personal lines - (9) 9 (1) (2) (11) 5 - (8) Commercial lines 7 (2) 2 6 13 23 20 7 56 Other business lines 1 - - 1 3 - - 1 3 Allstate Protection (223) (92) (99) (140) - (5) 23 (414) 18 Discontinued Lines and Coverages 88 3 2 3 99 2 1 93 102 Property-Liability $ (135) $ (89) $ (97) $ (137) $ 99 $ (3) $ 24 $ (321) $ 120 Allstate brand $ (220) $ (83) $ (105) $ (120) $ 3 $ (2) $ 13 $ (408) $ 14 Esurance brand (1) (1) - (9) (4) (4) (4) (2) (12) Encompass brand (2) (8) 6 (11) 1 1 14 (4) 16 Allstate Protection $ (223) $ (92) $ (99) $ (140) $ - $ (5) $ 23 $ (414) $ 18 Catastrophe Losses included in Prior Year Reserve Reestimates Allstate brand $ (7) $ (4) $ 2 $ (7) $ 2 $ 15 $ (4) (9) 13 Esurance brand - (1) - - - - - (1) - Encompass brand - (2) 2 - 1 (2) 1 - - Allstate Protection $ (7) $ (7) $ 4 $ (7) $ 3 $ 13 $ (3) (10) 13 Effect of Prior Year Reserve Reestimates on Combined Ratio (1)(2) Auto (2.4) (0.8) (1.0) (1.4) (0.1) (0.5) - (1.4) (0.2) Homeowners (0.5) (0.3) (0.3) (0.4) (0.1) 0.3 (0.1) (0.3) - Other personal lines - (0.1) 0.1 - - (0.1) - - - Commercial lines 0.1 - - 0.1 0.2 0.3 0.3 - 0.3 Other business lines - - - - - - - - - Allstate Protection (2.8) (1.2) (1.2) (1.7) - - 0.2 (1.7) 0.1 Discontinued Lines and Coverages 1.1 0.1 - - 1.3 - 0.1 0.4 0.4 Property-Liability (1.7) (1.1) (1.2) (1.7) 1.3 - 0.3 (1.3) 0.5 Allstate brand (2.8) (1.1) (1.3) (1.5) - - 0.1 (1.7) 0.1 Esurance brand - - - (0.1) - - (0.1) - (0.1) Encompass brand - (0.1) 0.1 (0.1) - - 0.2 - 0.1 Allstate Protection (2.8) (1.2) (1.2) (1.7) - - 0.2 (1.7) 0.1 (1) (2) 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. Three months ended Nine months ended

35 Sept. 30, June 30, March 31, 2017 2017 2017 2016 2015 2014 2013 2012 (net of reinsurance) Asbestos claims (1) Beginning reserves $ 867 $ 891 $ 912 $ 960 $ 1,014 $ 1,017 $ 1,026 $ 1,078 Incurred claims and claims expense 61 - - 67 39 87 74 26 Claims and claims expense paid (20) (24) (21) (115) (93) (90) (83) (78) Ending reserves $ 908 $ 867 $ 891 $ 912 $ 960 $ 1,014 $ 1,017 $ 1,026 Claims and claims expense paid as a percent of ending reserves 2.2% 2.8% 2.4% 12.6% 9.7% 8.9% 8.2% 7.6% Environmental claims (1) Beginning reserves $ 166 $ 178 $ 179 $ 179 $ 203 $ 208 $ 193 $ 185 Incurred claims and claims expense 10 - - 23 1 15 30 22 Claims and claims expense paid (1) (12) (1) (23) (25) (20) (15) (14) Ending reserves $ 175 $ 166 $ 178 $ 179 $ 179 $ 203 $ 208 $ 193 Claims and claims expense paid as a percent of ending reserves 0.6% 7.2% 0.6% 12.8% 14.0% 9.9% 7.2% 7.3% (1) The 3-year survival ratio for the combined environmental and asbestos claims was 9.0, 8.9, 10.4, 12.2, 14.4 and 14.3 for the annualized nine-months of 2017 and year-end 2016, 2015, 2014, 2013 and 2012, respectively, and is calculated by taking the ending reserves divided by net payments made during the year. THE ALLSTATE CORPORATION ASBESTOS AND ENVIRONMENTAL RESERVES ($ in millions) Twelve months ended December 31,Three months ended

36 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Premiums $ 385 $ 381 $ 381 $ 364 $ 361 $ 353 $ 354 $ 1,147 $ 1,068 Contract charges 208 210 212 210 210 211 212 630 633 Net investment income 461 496 426 453 427 435 419 1,383 1,281 Contract benefits (456) (486) (474) (464) (484) (454) (455) (1,416) (1,393) Interest credited to contractholder funds (173) (173) (173) (177) (183) (179) (184) (519) (546) Amortization of deferred policy acquisition costs (58) (69) (75) (70) (68) (68) (71) (202) (207) Operating costs and expenses (130) (130) (135) (127) (126) (121) (123) (395) (370) Restructuring and related charges (1) (1) - - - (1) - (2) (1) Income tax expense on operations (79) (75) (52) (59) (43) (56) (48) (206) (147) Operating income 157 153 110 130 94 120 104 420 318 Realized capital gains and losses, after-tax 13 (3) (1) (8) (14) - (32) 9 (46) Valuation changes on embedded derivatives that are not hedged, after-tax (1) (1) - 6 - (4) (4) (2) (8) DAC and DSI amortization relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax (2) (3) (3) (1) (1) (1) (1) (8) (3) Gain on disposition of operations, after-tax 1 - 2 - 1 1 1 3 3 Net income applicable to common shareholders $ 168 $ 146 $ 108 $ 127 $ 80 $ 116 $ 68 $ 422 $ 264 Three months ended Nine months ended THE ALLSTATE CORPORATION ALLSTATE FINANCIAL SEGMENT RESULTS ($ in millions)

37 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2017 2016 2016 2016 2016 Return on Attributed Equity Numerator: Net income applicable to common shareholders (1) $ 549 $ 461 $ 431 $ 391 $ 303 $ 485 $ 548 Denominator: Beginning attributed equity (2) $ 8,205 $ 8,055 $ 7,680 $ 7,350 $ 7,475 $ 7,621 $ 7,920 Ending attributed equity 8,073 7,851 7,778 7,904 8,205 8,055 7,680 Average attributed equity (3) $ 8,139 $ 7,953 $ 7,729 $ 7,627 $ 7,840 $ 7,838 $ 7,800 Return on attributed equity 6.7 % 5.8 % 5.6 % 5.1 % 3.9 % 6.2 % 7.0 % Operating Income Return on Adjusted Attributed Equity * Numerator: Operating income (1) $ 550 $ 487 $ 454 $ 448 $ 416 $ 460 $ 479 Denominator: Beginning attributed equity $ 8,205 $ 8,055 $ 7,680 $ 7,350 $ 7,475 $ 7,621 $ 7,920 Unrealized net capital gains and losses 1,150 1,077 824 556 722 1,030 1,499 Adjusted beginning attributed equity 7,055 6,978 6,856 6,794 6,753 6,591 6,421 Ending attributed equity 8,073 7,851 7,778 7,904 8,205 8,055 7,680 Unrealized net capital gains and losses 963 916 790 721 1,150 1,077 824 Adjusted ending attributed equity 7,110 6,935 6,988 7,183 7,055 6,978 6,856 Average adjusted attributed equity (3) $ 7,083 $ 6,957 $ 6,922 $ 6,989 $ 6,904 $ 6,785 $ 6,639 Operating income return on attributed equity * 7.8 % 7.0 % 6.6 % 6.4 % 6.0 % 6.8 % 7.2 % (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, which includes Allstate Assurance Company and American Heritage Life Insurance Company. 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) Twelve months ended Net income applicable to common shareholders and operating income reflect a trailing twelve-month period.

38 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 PREMIUMS AND CONTRACT CHARGES - BY PRODUCT Underwritten Products Traditional life insurance premiums $ 153 $ 148 $ 149 $ 151 $ 145 $ 139 $ 138 $ 450 $ 422 Accident and health insurance premiums 232 233 232 213 216 214 216 697 646 Interest-sensitive life insurance contract charges 204 207 209 206 206 208 209 620 623 589 588 590 570 567 561 563 1,767 1,691 Annuities Fixed annuity contract charges 4 3 3 4 4 3 3 10 10 Total $ 593 $ 591 $ 593 $ 574 $ 571 $ 564 $ 566 $ 1,777 $ 1,701 PREMIUMS AND CONTRACT CHARGES - BY DISTRIBUTION CHANNEL Allstate agencies $ 315 $ 316 $ 315 $ 312 $ 308 $ 306 $ 305 $ 946 $ 919 Workplace enrolling agents 254 250 250 236 238 232 233 754 703 Other (1) 24 25 28 26 25 26 28 77 79 Total $ 593 $ 591 $ 593 $ 574 $ 571 $ 564 $ 566 $ 1,777 $ 1,701 PROPRIETARY LIFE INSURANCE POLICIES SOLD BY ALLSTATE AGENCIES (2)(3) 28,962 31,447 25,970 38,614 27,481 29,839 25,458 86,379 82,778 ALLSTATE BENEFITS NEW BUSINESS WRITTEN PREMIUMS (4) $ 69 $ 73 $ 107 $ 177 $ 69 $ 70 $ 82 $ 249 $ 221 INSURANCE POLICIES AND ANNUITIES IN FORCE BY PRODUCT (in thousands) Underwritten Products Life insurance 2,476 2,483 2,476 2,478 2,477 2,480 2,469 2,476 2,477 Accident and health insurance 3,578 3,601 3,533 3,300 3,275 3,294 3,278 3,578 3,275 Total 6,054 6,084 6,009 5,778 5,752 5,774 5,747 6,054 5,752 Annuities Deferred annuities 145 148 152 156 160 163 168 145 160 Immediate annuities 91 92 94 95 96 98 99 91 96 Total 236 240 246 251 256 261 267 236 256 Total 6,290 6,324 6,255 6,029 6,008 6,035 6,014 6,290 6,008 INSURANCE POLICIES AND ANNUITIES IN FORCE BY SOURCE OF BUSINESS (in thousands) Allstate Agencies (5) 1,931 1,929 1,925 1,928 1,924 1,924 1,922 1,931 1,924 Allstate Benefits 4,035 4,064 3,992 3,755 3,733 3,752 3,726 4,035 3,733 Other (6) 324 331 338 346 351 359 366 324 351 Total 6,290 6,324 6,255 6,029 6,008 6,035 6,014 6,290 6,008 (1) (2) (3) (4) (5) (6) Primarily business sold by banks/broker-dealers, independent master brokerage agencies and specialized structured settlement brokers. THE ALLSTATE CORPORATION ALLSTATE FINANCIAL PREMIUMS AND CONTRACT CHARGES AND OTHER STATISTICS ($ in millions) Three months ended Nine months ended Primarily represents independent master brokerage agencies. Policies sold reduced by lapses within twelve months of sale. Allstate exclusive agencies and exclusive financial specialists also sell non-proprietary retirement and investment products, including mutual funds, fixed and variable annuities, disability insurance, and long-term care insurance to provide a broad suite of protection and retirement products. As of September 30, 2017, Allstate agencies had approximately $15.9 billion of nonproprietary mutual funds and fixed and variable annuity account balances under management. New and additional deposits into these non-proprietary products were $1.4 billion in the nine months ended September 30, 2017. 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. Excludes Allstate Benefits products sold through Allstate Agencies, which are included in the Allstate Benefits line.

39 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Contractholders funds, beginning balance $ 19,832 $ 20,051 $ 20,260 $ 20,583 $ 20,845 $ 21,092 $ 21,295 $ 20,260 $ 21,295 Deposits Interest-sensitive life insurance 268 278 283 273 283 280 286 829 849 Fixed annuities 6 6 11 13 8 11 10 23 29 Total deposits 274 284 294 286 291 291 296 852 878 Interest credited 174 172 173 168 181 184 189 519 554 Benefits, withdrawals, maturities and other adjustments Benefits (228) (230) (233) (231) (258) (225) (252) (691) (735) Surrenders and partial withdrawals (232) (248) (253) (237) (271) (300) (245) (733) (816) Maturities of and interest payments on institutional products - - - (86) - - - - - Contract charges (207) (206) (206) (209) (208) (206) (206) (619) (620) Net transfers from separate accounts - 2 2 1 2 1 1 4 4 Other adjustments 37 7 14 (15) 1 8 14 58 23 Total benefits, withdrawals, maturities and other adjustments (630) (675) (676) (777) (734) (722) (688) (1,981) (2,144) Contractholder funds, ending balance $ 19,650 $ 19,832 $ 20,051 $ 20,260 $ 20,583 $ 20,845 $ 21,092 $ 19,650 $ 20,583 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL CHANGE IN CONTRACTHOLDER FUNDS ($ in millions) Three months ended Nine months ended

40 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Benefit spread Premiums $ 385 $ 381 $ 381 $ 364 $ 361 $ 353 $ 354 $ 1,147 $ 1,068 Cost of insurance contract charges (1) 139 139 141 139 136 140 141 419 417 Contract benefits excluding the implied interest on immediate annuities with life contingencies (2) (332) (360) (348) (336) (358) (325) (327) (1,040) (1,010) Total benefit spread 192 160 174 167 139 168 168 526 475 Investment spread Net investment income 461 496 426 453 427 435 419 1,383 1,281 Implied interest on immediate annuities with life contingencies (2) (124) (126) (126) (128) (126) (129) (128) (376) (383) Interest credited to contractholder funds (174) (175) (173) (168) (183) (185) (190) (522) (558) Total investment spread 163 195 127 157 118 121 101 485 340 Surrender charges and contract maintenance expense fees (1) 69 71 71 71 74 71 71 211 216 Realized capital gains and losses 21 (4) (1) (11) (21) - (49) 16 (70) Amortization of deferred policy acquisition costs (62) (73) (79) (71) (70) (69) (73) (214) (212) Operating costs and expenses (130) (130) (135) (127) (126) (121) (123) (395) (370) Restructuring and related charges (1) (1) - - - (1) - (2) (1) Gain on disposition of operations 1 2 2 1 1 1 2 5 4 Income tax expense (85) (74) (51) (60) (35) (54) (29) (210) (118) Net income applicable to common shareholders $ 168 $ 146 $ 108 $ 127 $ 80 $ 116 $ 68 $ 422 $ 264 Benefit spread by product group Life insurance $ 91 $ 83 $ 76 $ 78 $ 64 $ 85 $ 80 $ 250 $ 229 Accident and health insurance 115 106 113 105 103 108 105 334 316 Annuities (14) (29) (15) (16) (28) (25) (17) (58) (70) Total benefit spread $ 192 $ 160 $ 174 $ 167 $ 139 $ 168 $ 168 $ 526 $ 475 Investment spread by product group Life insurance $ 32 $ 34 $ 32 $ 33 $ 30 $ 29 $ 34 $ 98 $ 93 Accident and health insurance 5 4 4 4 4 4 4 13 12 Annuities and institutional products 64 94 28 51 25 35 17 186 77 Net investment income on investments supporting capital 64 64 63 60 59 59 52 191 170 Investment spread before valuation changes on embedded derivatives that are not hedged 165 196 127 148 118 127 107 488 352 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged (2) (1) - 9 - (6) (6) (3) (12) Total investment spread $ 163 $ 195 $ 127 $ 157 $ 118 $ 121 $ 101 $ 485 $ 340 (1) Reconciliation of contract charges Cost of insurance contract charges $ 139 $ 139 $ 141 $ 139 $ 136 $ 140 $ 141 $ 419 $ 417 Surrender charges and contract maintenance expense fees 69 71 71 71 74 71 71 211 216 Total contract charges $ 208 $ 210 $ 212 $ 210 $ 210 $ 211 $ 212 $ 630 $ 633 (2) Reconciliation of contract benefits Contract benefits excluding the implied interest on immediate annuities with life contingencies $ (332) $ (360) $ (348) $ (336) $ (358) $ (325) $ (327) $ (1,040) $ (1,010) Implied interest on immediate annuities with life contingencies (124) (126) (126) (128) (126) (129) (128) (376) (383) Total contract benefits $ (456) $ (486) $ (474) $ (464) $ (484) $ (454) $ (455) $ (1,416) $ (1,393) THE ALLSTATE CORPORATION ALLSTATE FINANCIAL ANALYSIS OF NET INCOME ($ in millions) Three months ended Nine months ended

41 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 5.1 % 3.9 % 1.2 % 4.8 % 3.9 % 0.9 % Deferred fixed annuities and institutional products 4.4 2.9 1.5 4.2 2.8 1.4 Immediate fixed annuities with and without life contingencies 7.8 6.0 1.8 6.2 6.0 0.2 Investments supporting capital, traditional life and other products 3.9 n/a n/a 4.0 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 5.0 % 3.8 % 1.2 % 4.9 % 3.9 % 1.0 % Deferred fixed annuities and institutional products 4.3 2.8 1.5 4.1 2.8 1.3 Immediate fixed annuities with and without life contingencies 7.7 6.0 1.7 6.2 5.9 0.3 Investments supporting capital, traditional life and other products 3.9 n/a n/a 3.9 n/a n/a THE ALLSTATE CORPORATION ALLSTATE FINANCIAL WEIGHTED AVERAGE INVESTMENT SPREADS Three months ended September 30, 2017 Three months ended September 30, 2016 Nine months ended September 30, 2017 Nine months ended September 30, 2016

42 Twelve months ended September 30, 2017 Attributed equity Reserves and excluding unrealized Sept. June March Dec. Sept. June March Contractholder funds capital gains/losses (3)(4) Operating income (5) 2017 2017 2017 2016 2016 2016 2016 Underwritten products Life insurance $ 11,128 $ 2,161 $ 273 11.4 % 10.7 % 10.4 % 9.9 % 10.1 % 10.8 % 11.1 % Accident and health insurance 901 725 87 12.7 12.2 12.8 13.2 12.8 12.4 12.2 Subtotal 12,029 2,886 360 11.7 11.1 11.0 10.6 10.6 11.1 11.3 Immediate Annuities: Sub-standard structured settlements and group pension terminations (1) 5,027 2,292 27 1.3 0.3 (0.8) (0.8) (1.7) (0.9) (0.2) Standard structured settlements and SPIA (2) 6,269 1,350 99 7.7 6.4 4.9 4.3 2.2 4.1 4.9 Subtotal (6) 11,296 3,642 126 3.7 2.6 1.5 1.2 (0.1) 1.1 2.0 Deferred Annuities 8,552 582 64 10.5 10.2 10.3 9.7 9.6 10.0 10.4 Subtotal 19,848 4,224 190 4.7 3.8 2.9 2.7 1.8 2.9 3.7 Total Allstate Financial $ 31,877 $ 7,110 $ 550 7.8 7.0 6.6 6.4 6.0 6.8 7.2 Life Accident and Annuities and Allstate insurance health insurance institutional products Financial Operating income $ 204 $ 67 $ 149 $ 420 Realized capital gains and losses, after-tax 3 - 6 9 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 (8) - - (8) Gain on disposition of operations, after-tax - - 3 3 Net income applicable to common shareholders $ 199 $ 67 $ 156 $ 422 (1) (2) (3) (4) (5) (6) Product line operating income includes allocation of income on investments supporting capital. Operating income reflects a trailing twelve-month period. Of the total immediate annuities, $8,552 million are reported in reserve for life-contingent contract benefits and $2,744 million are reported in contractholder funds. Annuities and institutional products: Nine months ended September 30, 2017 Structured settlement annuities for annuitants with severe injuries or other health impairments which significantly reduced their life expectancy at the time the annuity was issued and group annuity contracts issued to sponsors of terminated pension plans. Life-contingent structured settlement annuities for annuitants with standard life expectancy, period certain structured settlements and single premium immediate annuities with and without life contingencies. Total Allstate Financial attributed equity is the sum of equity for Allstate Life Insurance Company and the applicable equity for Allstate Financial Insurance Holdings Corporation, excluding unrealized capital gains and losses. Attributed equity is allocated to each product line based on statutory capital adjusted for GAAP reporting differences and the amount of capital held in Allstate Financial may vary from economic capital. The calculation of statutory capital by product incorporates internal factors for invested asset risk, insurance risk (mortality and morbidity), interest rate risk and business risk. Due to the unavailability of final statutory financial statements at the time we release our GAAP financial results, the allocation is derived from prior quarter statutory capital. Statutory capital is adjusted for appropriate GAAP accounting differences. Changes in internal capital factors, investment portfolio mix and risk as well as changes in GAAP and statutory reporting differences will result in changes to the allocation of attributed equity to products. Twelve months ended THE ALLSTATE CORPORATION ALLSTATE FINANCIAL SUPPLEMENTAL PRODUCT INFORMATION ($ in millions) As of September 30, 2017 Operating income return on attributed equity * (%)

43 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Benefits Annuities Segment Life Benefits Annuities Segment $ 141 $ 244 $ - $ 385 $ 134 $ 227 $ - $ 361 175 29 4 208 176 30 4 210 119 18 324 461 120 18 289 427 (173) (142) (141) (456) (197) (131) (156) (484) (71) (8) (94) (173) (72) (9) (102) (183) Amortization of deferred policy acquisition costs (25) (31) (2) (58) (30) (36) (2) (68) (56) (65) (9) (130) (59) (59) (8) (126) (1) (1) 1 (1) - - - - (35) (16) (28) (79) (21) (15) (7) (43) 74 28 55 157 51 25 18 94 1 1 11 13 (7) - (7) (14) - - (1) (1) - - - - (2) - - (2) (1) - - (1) Gain on disposition of operations, after-tax - - 1 1 - - 1 1 $ 73 $ 29 $ 66 $ 168 $ 43 $ 25 $ 12 $ 80 Premiums and Contract Charges - by Product Underwritten Products $ 141 $ 12 $ - $ 153 $ 133 $ 12 $ - $ 145 - 232 - 232 1 215 - 216 175 29 - 204 176 30 - 206 316 273 - 589 310 257 - 567 - - 4 4 - - 4 4 $ 316 $ 273 $ 4 $ 593 $ 310 $ 257 $ 4 $ 571 Life Insurance $ 83 $ 8 $ - $ 91 $ 59 $ 5 $ - $ 64 Accident and health insurance 6 109 - 115 (2) 105 - 103 Annuities - - (14) (14) - - (28) (28) $ 89 $ 117 $ (14) $ 192 $ 57 $ 110 $ (28) $ 139 Life insurance $ 29 $ 3 $ - $ 32 $ 27 $ 3 $ - $ 30 Accident and health insurance 2 3 - 5 1 3 - 4 Annuities and institutional products - - 64 64 - - 25 25 Net investment income on investments supporting capital 17 4 43 64 20 3 36 59 derivatives that are not hedged 48 10 107 165 48 9 61 118 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - - (2) (2) - - - - Total investment spread $ 48 $ 10 $ 105 $ 163 $ 48 $ 9 $ 61 $ 118 Investment Spread by Product Group Investment spread before valuation changes on embedded Fixed annuity contract charges Total 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 Restructuring and related charges Income tax expense on operations Operating income Realized capital gains and losses, after-tax Premiums THE ALLSTATE CORPORATION ALLSTATE LIFE, ALLSTATE BENEFITS AND ALLSTATE ANNUITIES RESULTS AND PRODUCT INFORMATION ($ in millions) For the three months ended September 30, 2017 For the three months ended September 30, 2016

44 Allstate Allstate Allstate Allstate Allstate Financial Allstate Allstate Allstate Financial Life Benefits Annuities Segment Life Benefits Annuities Segment $ 421 $ 726 $ - $ 1,147 $ 395 $ 673 $ - $ 1,068 535 85 10 630 537 86 10 633 362 54 967 1,383 358 54 869 1,281 (555) (421) (440) (1,416) (554) (380) (459) (1,393) (211) (26) (282) (519) (213) (28) (305) (546) Amortization of deferred policy acquisition costs (92) (105) (5) (202) (93) (109) (5) (207) (173) (196) (26) (395) (169) (178) (23) (370) (1) (1) - (2) (1) - - (1) (90) (41) (75) (206) (79) (41) (27) (147) 196 75 149 420 181 77 60 318 2 1 6 9 (17) (3) (26) (46) - - (2) (2) - - (8) (8) (8) - - (8) (3) - - (3) Gain on disposition of operations, after-tax - - 3 3 - - 3 3 $ 190 $ 76 $ 156 $ 422 $ 161 $ 74 $ 29 $ 264 Premiums and Contract Charges - by Product Underwritten Products $ 420 $ 30 $ - $ 450 $ 393 $ 29 $ - $ 422 1 696 - 697 2 644 - 646 535 85 - 620 537 86 - 623 956 811 - 1,767 932 759 - 1,691 - - 10 10 - - 10 10 $ 956 $ 811 $ 10 $ 1,777 $ 932 $ 759 $ 10 $ 1,701 Life Insurance $ 232 $ 18 $ - $ 250 $ 212 $ 17 $ - $ 229 Accident and health insurance 2 332 - 334 (4) 320 - 316 Annuities - - (58) (58) - - (70) (70) $ 234 $ 350 $ (58) $ 526 $ 208 $ 337 $ (70) $ 475 Life insurance $ 90 $ 8 $ - $ 98 $ 85 $ 8 $ - $ 93 Accident and health insurance 4 9 - 13 4 8 - 12 Annuities and institutional products - - 186 186 - - 77 77 Net investment income on investments supporting capital 57 11 123 191 56 10 104 170 derivatives that are not hedged 151 28 309 488 145 26 181 352 Valuation changes on derivatives embedded in equity- indexed annuity contracts that are not hedged - - (3) (3) - - (12) (12) Total investment spread $ 151 $ 28 $ 306 $ 485 $ 145 $ 26 $ 169 $ 340 Investment Spread by Product Group Investment spread before valuation changes on embedded Fixed annuity contract charges Total 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 Restructuring and related charges Income tax expense on operations Operating income Realized capital gains and losses, after-tax Premiums THE ALLSTATE CORPORATION ALLSTATE LIFE, ALLSTATE BENEFITS AND ALLSTATE ANNUITIES RESULTS AND PRODUCT INFORMATION ($ in millions) For the nine months ended September 30, 2017 For the nine months ended September 30, 2016

45 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Net investment income $ 10 $ 10 $ 11 $ 10 $ 11 $ 11 $ 10 $ 31 $ 32 Operating costs and expenses (1) (93) (9) (8) (9) (7) (7) (6) (110) (20) Interest expense (82) (83) (85) (77) (73) (72) (73) (250) (218) Income tax benefit on operations 60 31 30 29 26 26 25 121 77 Preferred stock dividends (29) (29) (29) (29) (29) (29) (29) (87) (87) Operating loss (134) (80) (81) (76) (72) (71) (73) (295) (216) Realized capital gains and losses, after-tax - - - (1) - (1) - - (1) Business combination expenses, after-tax (2) (1) - (13) - - - - (14) - Net loss applicable to common shareholders $ (135) $ (80) $ (94) $ (77) $ (72) $ (72) $ (73) $ (309) $ (217) (1) (2) Includes a pension settlement loss of $86 million recorded for the three months ended September 30, 2017. Relates to SquareTrade acquisition on January 3, 2017. THE ALLSTATE CORPORATION CORPORATE AND OTHER SEGMENT RESULTS ($ in millions) Three months ended Nine months ended

46 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2017 2017 2017 2016 2016 2017 2017 2017 2016 2016 Fixed income securities, at fair value: Tax-exempt $ 4,919 $ 4,974 $ 4,623 $ 4,447 $ 4,798 $ - $ - $ - $ - $ 1 Taxable 27,728 26,908 26,754 25,855 26,968 24,863 25,065 25,072 25,578 26,225 Equity securities, at fair value (1) 4,677 4,410 4,012 4,074 3,604 1,749 1,699 1,670 1,589 1,681 Mortgage loans 334 297 279 280 270 3,988 4,039 4,070 4,206 4,126 Limited partnership interests (2) 3,467 3,266 3,122 3,042 2,913 3,132 2,940 2,860 2,771 2,674 Short-term, at fair value 1,052 1,560 1,592 3,405 917 819 566 818 609 733 Other 1,666 1,668 1,618 1,619 1,587 2,160 2,147 2,120 2,087 2,076 Total $ 43,843 $ 43,083 $ 42,000 $ 42,722 $ 41,057 $ 36,711 $ 36,456 $ 36,610 $ 36,840 $ 37,516 Fixed income securities, amortized cost: Tax-exempt $ 4,893 $ 4,949 $ 4,635 $ 4,498 $ 4,726 $ - $ - $ 1 $ - $ 1 Taxable 27,397 26,585 26,529 25,706 26,447 23,457 23,678 23,860 24,424 24,330 Ratio of fair value to amortized cost 101.1% 101.1% 100.7% 100.3% 101.9% 106.0% 105.9% 105.1% 104.7% 107.8% Equity securities, cost $ 3,995 $ 3,839 $ 3,526 $ 3,671 $ 3,212 $ 1,465 $ 1,474 $ 1,497 $ 1,483 $ 1,585 Short-term, amortized cost 1,052 1,560 1,592 3,405 917 819 566 818 609 733 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2017 2017 2017 2016 2016 2017 2017 2017 2016 2016 Fixed income securities, at fair value: Tax-exempt $ 560 $ 546 $ 541 $ 535 $ 600 $ 5,479 $ 5,520 $ 5,164 $ 4,982 $ 5,399 Taxable 1,321 1,163 1,646 1,424 1,714 53,912 53,136 53,472 52,857 54,907 Equity securities, at fair value 8 8 3 3 3 6,434 6,117 5,685 5,666 5,288 Mortgage loans - - - - - 4,322 4,336 4,349 4,486 4,396 Limited partnership interests 1 - - 1 1 6,600 6,206 5,982 5,814 5,588 Short-term, at fair value 327 49 343 274 213 2,198 2,175 2,753 4,288 1,863 Other - - - - - 3,826 3,815 3,738 3,706 3,663 Total $ 2,217 $ 1,766 $ 2,533 $ 2,237 $ 2,531 $ 82,771 $ 81,305 $ 81,143 $ 81,799 $ 81,104 Fixed income securities, amortized cost: Tax-exempt $ 547 $ 533 $ 529 $ 527 $ 580 $ 5,440 $ 5,482 $ 5,165 $ 5,025 $ 5,307 Taxable 1,314 1,156 1,640 1,421 1,691 52,168 51,419 52,029 51,551 52,468 Ratio of fair value to amortized cost 101.1% 101.2% 100.8% 100.6% 101.9% 103.1% 103.1% 102.5% 102.2% 104.4% Equity securities, cost $ 8 $ 8 $ 3 $ 3 $ 3 $ 5,468 $ 5,321 $ 5,026 $ 5,157 $ 4,800 Short-term, amortized cost 327 49 343 274 213 2,198 2,175 2,753 4,288 1,863 (1) (2) THE ALLSTATE CORPORATION INVESTMENTS ($ in millions) Equity securities may include investments in exchange traded and mutual funds whose underlying investments are fixed income securities. As of September 30, 2017, we have commitments to invest in additional limited partnership interests totaling $1.88 billion, $1.44 billion and $3.32 billion for Property-Liability, Allstate Financial, and Consolidated, respectively. PROPERTY-LIABILITY ALLSTATE FINANCIAL CORPORATE AND OTHER CONSOLIDATED

47 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 $ 57 $ 3,900 101.5 $ 63 $ 3,426 101.9 $ 66 $ 4,395 101.5 Municipal 310 7,794 104.1 312 7,855 104.1 258 7,507 103.6 Corporate 1,287 44,546 103.0 1,244 44,251 102.9 992 43,535 102.3 Foreign government 16 1,093 101.5 28 1,047 102.7 32 1,027 103.2 Asset-backed securities ("ABS") 7 1,270 100.6 6 1,243 100.5 3 1,265 100.2 Residential mortgage-backed securities ("RMBS") 99 611 119.3 92 641 116.8 83 672 114.1 Commercial mortgage-backed securities ("CMBS") 4 153 102.7 7 170 104.3 5 211 102.4 Redeemable preferred stock 3 24 114.3 3 23 115.0 3 24 114.3 Total fixed income securities 1,783 59,391 103.1 1,755 58,656 103.1 1,442 58,636 102.5 Equity securities 966 6,434 117.7 796 6,117 115.0 659 5,685 113.1 Short-term investments - 2,198 100.0 - 2,175 100.0 - 2,753 100.0 Derivatives (2) 101 n/a (1) 108 n/a - 108 n/a EMA limited partnership interests (2) - n/a n/a (1) n/a n/a - n/a n/a Unrealized net capital gains and losses, pre-tax 2,747 2,549 2,101 Amounts recognized for: Insurance reserves (3) - - - DAC and DSI (4) (203) (198) (165) Amounts recognized (203) (198) (165) Deferred income taxes (893) (825) (680) Unrealized net capital gains and losses, after-tax $ 1,651 $ 1,526 $ 1,256 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 ABS 2 1,171 100.2 (3) 1,390 99.8 (11) 1,726 99.4 RMBS 77 728 111.8 82 778 111.8 70 818 109.4 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 (1) (2) (3) (4) 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 interests represent the Company's share of EMA limited partnerships' other comprehensive income. Fair value and amortized cost are not applicable. 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, if any, primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies. December 31, 2016 September 30, 2016 June 30, 2016 THE ALLSTATE CORPORATION UNREALIZED NET CAPITAL GAINS AND LOSSES ON SECURITY PORTFOLIO BY TYPE ($ in millions) September 30, 2017 June 30, 2017 March 31, 2017

48 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 NET INVESTMENT INCOME Fixed income securities $ 519 $ 527 $ 518 $ 514 $ 508 $ 520 $ 518 $ 1,564 $ 1,546 Equity securities 37 49 44 34 31 44 28 130 103 Mortgage loans 52 50 55 55 56 53 53 157 162 Limited partnership interests ("LP") 223 253 120 178 136 126 121 596 383 Short-term 9 6 6 5 4 3 4 21 11 Other 58 60 56 59 55 57 51 174 163 Investment income, before expense 898 945 799 845 790 803 775 2,642 2,368 Less: Investment expense (55) (48) (51) (44) (42) (41) (44) (154) (127) Net investment income $ 843 $ 897 $ 748 $ 801 $ 748 $ 762 $ 731 $ 2,488 $ 2,241 Interest-bearing investments (1) $ 627 $ 631 $ 625 $ 622 $ 613 $ 623 $ 618 $ 1,883 $ 1,854 Equity securities 37 49 44 34 31 44 28 130 103 LP and other alternative investments (2) 234 265 130 189 146 136 129 629 411 Investment income, before expense $ 898 $ 945 $ 799 $ 845 $ 790 $ 803 $ 775 $ 2,642 $ 2,368 PRE-TAX YIELDS (3) Fixed income securities 3.6 % 3.7 % 3.6 % 3.6 % 3.6 % 3.7 % 3.7 % 3.7 % 3.6 % Equity securities 2.7 3.8 3.5 2.7 2.5 3.7 2.3 3.3 2.8 Mortgage loans 4.8 4.6 4.9 5.0 5.0 4.9 4.9 4.8 4.9 Limited partnership interests 13.9 16.6 8.1 12.5 9.9 9.6 9.7 12.9 9.7 Total portfolio 4.5 4.7 4.0 4.2 4.0 4.1 4.0 4.4 4.0 Interest-bearing investments 3.7 3.8 3.7 3.7 3.7 3.8 3.7 3.7 3.7 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (23) $ (28) $ (43) $ (49) $ (63) $ (63) $ (59) $ (94) $ (185) Change in intent write-downs (5) (22) (16) (21) (10) (16) (22) (43) (48) Net other-than-temporary impairment losses recognized in earnings (28) (50) (59) (70) (73) (79) (81) (137) (233) Sales and other 148 139 208 47 121 104 (59) 495 166 Valuation and settlements of derivative instruments (17) (8) (15) 25 (15) (1) (9) (40) (25) Total $ 103 $ 81 $ 134 $ 2 $ 33 $ 24 $ (149) $ 318 $ (92) TOTAL RETURN ON INVESTMENT PORTFOLIO (4) Income 1.0 % 1.1 % 0.9 % 1.0 % 0.9 % 1.0 % 0.9 % 3.1 % 2.8 % Valuation 0.5 0.7 0.7 (1.7) 0.4 0.9 1.1 1.8 2.4 Total 1.5 % 1.8 % 1.6 % (0.7) % 1.3 % 1.9 % 2.0 % 4.9 % 5.2 % AVERAGE INVESTMENT BALANCES (in billions) (5) $ 79.4 $ 78.9 $ 79.5 $ 79.1 $ 77.5 $ 76.9 $ 76.8 $ 79.5 $ 77.2 (1) (2) (3) (4) (5) Comprise fixed income securities, mortgage loans, short-term investments, and other investments including bank and agent loans and derivatives. Comprise limited partnership interests and other alternative investments, including real estate, timber and agriculture-related investments classified as other investments. 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. Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense 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, before investment expense 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 investee level expenses (depreciation and asset level operating expenses reported in investment expense). For investments carried at fair value, investment balances exclude unrealized capital gains and losses. THE ALLSTATE CORPORATION NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Three months ended Nine months ended

49 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 NET INVESTMENT INCOME Fixed income securities: Tax-exempt $ 23 $ 23 $ 22 $ 23 $ 23 $ 23 $ 23 $ 68 $ 69 Taxable 209 210 204 200 192 198 200 623 590 Equity securities 28 33 29 24 21 30 20 90 71 Mortgage loans 4 2 3 3 3 3 3 9 9 Limited partnership interests 108 118 55 82 69 60 58 281 187 Short-term 5 4 4 3 3 1 2 13 6 Other 25 27 22 24 22 23 20 74 65 Investment income, before expense 402 417 339 359 333 338 326 1,158 997 Less: Investment expense (30) (26) (28) (21) (23) (22) (24) (84) (69) Net investment income $ 372 $ 391 $ 311 $ 338 $ 310 $ 316 $ 302 $ 1,074 $ 928 Net investment income, after-tax $ 252 $ 264 $ 212 $ 231 $ 211 $ 215 $ 206 $ 728 $ 632 Interest-bearing investments $ 259 $ 259 $ 249 $ 246 $ 238 $ 241 $ 243 $ 767 $ 722 Equity securities 28 33 29 24 21 30 20 90 71 LP and other alternative investments 115 125 61 89 74 67 63 301 204 Investment income, before expense $ 402 $ 417 $ 339 $ 359 $ 333 $ 338 $ 326 $ 1,158 $ 997 PRE-TAX YIELDS Fixed income securities: Tax-exempt 1.9 % 1.9 % 1.9 % 2.0 % 2.0 % 2.1 % 2.1 % 1.9 % 2.1 % Equivalent yield for tax-exempt 2.8 2.8 2.8 2.9 2.9 3.1 3.1 2.8 3.1 Taxable 3.1 3.1 3.1 3.1 3.0 3.2 3.2 3.1 3.1 Equity securities 2.8 3.6 3.3 2.8 2.6 3.6 2.4 3.2 2.9 Mortgage loans 4.2 3.7 3.8 3.9 3.7 3.9 4.0 3.9 3.9 Limited partnership interests 12.9 14.8 7.1 11.0 9.6 8.6 8.9 11.6 9.0 Total portfolio 3.7 3.9 3.2 3.4 3.3 3.5 3.3 3.6 3.4 Interest-bearing investments 3.0 3.0 2.9 2.9 2.9 3.0 3.0 2.9 3.0 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities: Tax-exempt $ 2 $ (2) $ (2) $ (9) $ 8 $ 4 $ 3 $ (2) $ 15 Taxable 33 40 14 (17) 9 20 (47) 87 (18) Equity securities 50 23 106 49 42 15 (60) 179 (3) Limited partnership interests 10 21 27 (29) 13 (10) 13 58 16 Derivatives and other (13) 3 (10) 20 (19) (3) (8) (20) (30) Total $ 82 $ 85 $ 135 $ 14 $ 53 $ 26 $ (99) $ 302 $ (20) REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (17) $ (16) $ (22) $ (27) $ (26) $ (42) $ (35) $ (55) $ (103) Change in intent write-downs (5) (21) (13) (17) (8) (12) (19) (39) (39) Net other-than-temporary impairment losses recognized in earnings (22) (37) (35) (44) (34) (54) (54) (94) (142) Sales and other 117 126 180 43 101 82 (41) 423 142 Valuation and settlements of derivative instruments (13) (4) (10) 15 (14) (2) (4) (27) (20) Total $ 82 $ 85 $ 135 $ 14 $ 53 $ 26 $ (99) $ 302 $ (20) AVERAGE INVESTMENT BALANCES (in billions) $ 42.5 $ 41.7 $ 41.8 $ 41.1 $ 39.5 $ 38.5 $ 38.3 $ 42.1 $ 38.9 THE ALLSTATE CORPORATION PROPERTY-LIABILITY NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Three months ended Nine months ended

50 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 NET INVESTMENT INCOME Fixed income securities $ 277 $ 283 $ 281 $ 280 $ 282 $ 288 $ 284 $ 841 $ 854 Equity securities 9 16 15 10 10 14 8 40 32 Mortgage loans 48 48 52 52 53 50 50 148 153 Limited partnership interests 115 135 65 96 67 66 63 315 196 Short-term 3 2 1 2 1 1 2 6 4 Other 33 32 33 34 32 33 30 98 95 Investment income, before expense 485 516 447 474 445 452 437 1,448 1,334 Less: Investment expense (24) (20) (21) (21) (18) (17) (18) (65) (53) Net investment income $ 461 $ 496 $ 426 $ 453 $ 427 $ 435 $ 419 $ 1,383 $ 1,281 Net investment income, after-tax $ 300 $ 322 $ 277 $ 294 $ 278 $ 282 $ 273 $ 899 $ 833 Interest-bearing investments $ 357 $ 360 $ 363 $ 364 $ 363 $ 369 $ 363 $ 1,080 $ 1,095 Equity securities 9 16 15 10 10 14 8 40 32 LP and other alternative investments 119 140 69 100 72 69 66 328 207 Investment income, before expense $ 485 $ 516 $ 447 $ 474 $ 445 $ 452 $ 437 $ 1,448 $ 1,334 PRE-TAX YIELDS Fixed income securities 4.7 % 4.8 % 4.7 % 4.6 % 4.6 % 4.7 % 4.6 % 4.7 % 4.6 % Equity securities 2.6 4.2 4.0 2.6 2.5 3.9 2.1 3.6 2.8 Mortgage loans 4.8 4.7 5.0 5.0 5.1 4.9 4.9 4.8 5.0 Limited partnership interests 15.1 18.6 9.3 14.1 10.2 10.7 10.7 14.3 10.5 Total portfolio 5.5 5.8 5.0 5.3 4.9 5.0 4.8 5.4 4.9 Interest-bearing investments 4.7 4.7 4.7 4.7 4.6 4.6 4.6 4.7 4.6 REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY ASSET TYPE Fixed income securities $ 6 $ (6) $ (7) $ (16) $ (19) $ (1) $ (26) $ (7) $ (46) Equity securities 7 (4) - 8 3 (4) (30) 3 (31) Mortgage loans 1 - - (1) - 1 - 1 1 Limited partnership interests 11 10 13 (17) (1) - 13 34 12 Derivatives and other (4) (4) (7) 15 (4) 4 (6) (15) (6) Total $ 21 $ (4) $ (1) $ (11) $ (21) $ - $ (49) $ 16 $ (70) REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) BY TRANSACTION TYPE Impairment write-downs $ (6) $ (12) $ (21) $ (22) $ (37) $ (18) $ (24) $ (39) $ (79) Change in intent write-downs - (1) (3) (4) (2) (4) (3) (4) (9) Net other-than-temporary impairment losses recognized in earnings (6) (13) (24) (26) (39) (22) (27) (43) (88) Sales and other 31 13 28 5 19 21 (17) 72 23 Valuation and settlements of derivative instruments (4) (4) (5) 10 (1) 1 (5) (13) (5) Total $ 21 $ (4) $ (1) $ (11) $ (21) $ - $ (49) $ 16 $ (70) AVERAGE INVESTMENT BALANCES (in billions) $ 34.9 $ 35.0 $ 35.4 $ 35.6 $ 35.7 $ 35.9 $ 35.9 $ 35.2 $ 35.8 THE ALLSTATE CORPORATION ALLSTATE FINANCIAL NET INVESTMENT INCOME, YIELDS AND REALIZED CAPITAL GAINS AND LOSSES (PRE-TAX) ($ in millions) Three months ended Nine months ended

51 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 MARKET-BASED ("MB") (1) Investment Position Interest-bearing investments $ 69,070 $ 68,331 $ 68,836 $ 69,688 $ 69,579 $ 68,357 $ 68,001 $ 69,070 $ 69,579 Equity securities 6,336 6,021 5,578 5,567 5,194 5,192 5,032 6,336 5,194 LP and other alternative investments (2) 694 591 555 535 481 405 403 694 481 Total $ 76,100 $ 74,943 $ 74,969 $ 75,790 $ 75,254 $ 73,954 $ 73,436 $ 76,100 $ 75,254 Investment income Interest-bearing investments $ 625 $ 629 $ 624 $ 622 $ 611 $ 618 $ 614 $ 1,878 $ 1,843 Equity securities 37 45 35 34 31 44 28 117 103 LP and other alternative investments 1 - - (1) 1 - - 1 1 Investment income, before expense 663 674 659 655 643 662 642 1,996 1,947 Investee level expenses (3) (1) (2) (1) (1) (1) (1) (1) (4) (3) Income for yield calculation $ 662 $ 672 $ 658 $ 654 $ 642 $ 661 $ 641 $ 1,992 $ 1,944 Market-based pre-tax yield 3.6 % 3.7 % 3.6 % 3.6 % 3.6 % 3.7 % 3.6 % 3.6 % 3.6 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (7) $ (19) $ (36) $ (26) $ (37) $ (50) $ (31) $ (62) $ (118) Change in intent write-downs (5) (22) (16) (21) (10) (16) (21) (43) (47) Net other-than-temporary impairment losses recognized in earnings (12) (41) (52) (47) (47) (66) (52) (105) (165) Sales and other 148 129 208 43 118 123 (80) 485 161 Valuation and settlements of derivative instruments (12) (1) (10) 13 (13) (5) (6) (23) (24) Total $ 124 $ 87 $ 146 $ 9 $ 58 $ 52 $ (138) $ 357 $ (28) PERFORMANCE-BASED ("PB") (4) Investment Position Interest-bearing investments $ 130 $ 129 $ 108 $ 113 $ 130 $ 162 $ 162 $ 130 $ 130 Equity securities 98 96 107 99 94 73 85 98 94 LP and other alternative investments 6,443 6,137 5,959 5,797 5,626 5,505 5,194 6,443 5,626 Total $ 6,671 $ 6,362 $ 6,174 $ 6,009 $ 5,850 $ 5,740 $ 5,441 $ 6,671 $ 5,850 Investment income Interest-bearing investments $ 2 $ 2 $ 1 $ - $ 2 $ 5 $ 4 $ 5 $ 11 Equity securities - 4 9 - - - - 13 - LP and other alternative investments 233 265 130 190 145 136 129 628 410 Investment income, before expense 235 271 140 190 147 141 133 646 421 Investee level expenses (8) (8) (9) (8) (8) (8) (8) (25) (24) Income for yield calculation $ 227 $ 263 $ 131 $ 182 $ 139 $ 133 $ 125 $ 621 $ 397 Performance-based pre-tax yield 14.0 % 16.8 % 8.7 % 12.3 % 9.7 % 9.5 % 9.3 % 13.2 % 9.5 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (16) $ (9) $ (7) $ (23) $ (26) $ (13) $ (28) $ (32) $ (67) Change in intent write-downs - - - - - - (1) - (1) Net other-than-temporary impairment losses recognized in earnings (16) (9) (7) (23) (26) (13) (29) (32) (68) Sales and other - 10 - 4 3 (19) 21 10 5 Valuation and settlements of derivative instruments (5) (7) (5) 12 (2) 4 (3) (17) (1) Total $ (21) $ (6) $ (12) $ (7) $ (25) $ (28) $ (11) $ (39) $ (64) (1) (2) (3) (4) Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities. Market-based investments include publicly traded equity securities classified as limited partnerships. When calculating the pre-tax yields, investee level expenses are netted against income for directly held real estate, timber and other consolidated investments. Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, real estate, infrastructure, timber and agriculture-related assets. THE ALLSTATE CORPORATION CONSOLIDATED INVESTMENT POSITION AND RESULTS BY STRATEGY ($ in millions) As of or for the three months ended As of or for the nine months ended

52 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 MARKET-BASED Investment Position Interest-bearing investments $ 35,232 $ 34,943 $ 34,389 $ 35,138 $ 34,057 $ 32,729 $ 31,852 $ 35,232 $ 34,057 Equity securities 4,625 4,359 3,956 4,022 3,554 3,589 3,660 4,625 3,554 LP and other alternative investments 474 400 376 369 333 282 277 474 333 Total $ 40,331 $ 39,702 $ 38,721 $ 39,529 $ 37,944 $ 36,600 $ 35,789 $ 40,331 $ 37,944 Investment income Interest-bearing investments $ 257 $ 257 $ 248 $ 247 $ 236 $ 239 $ 240 $ 762 $ 715 Equity securities 28 31 24 24 21 30 20 83 71 LP and other alternative investments 1 - - (1) - - - 1 - Investment income, before expense 286 288 272 270 257 269 260 846 786 Investee level expenses (1) (2) (1) (1) (1) (1) (1) (4) (3) Income for yield calculation $ 285 $ 286 $ 271 $ 269 $ 256 $ 268 $ 259 $ 842 $ 783 Market-based pre-tax yield 2.9 % 3.0 % 2.8 % 2.8 % 2.8 % 3.0 % 2.9 % 2.9 % 2.9 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (3) $ (11) $ (18) $ (13) $ (14) $ (25) $ (22) $ (32) $ (61) Change in intent write-downs (5) (21) (13) (17) (8) (12) (18) (39) (38) Net other-than-temporary impairment losses recognized in earnings (8) (32) (31) (30) (22) (37) (40) (71) (99) Sales and other 118 114 181 39 98 87 (48) 413 137 Valuation and settlements of derivative instruments (10) (1) (9) 10 (13) (4) (3) (20) (20) Total $ 100 $ 81 $ 141 $ 19 $ 63 $ 46 $ (91) $ 322 $ 18 PERFORMANCE-BASED Investment Position Interest-bearing investments $ 107 $ 109 $ 94 $ 95 $ 109 $ 129 $ 128 $ 107 $ 109 Equity securities 52 51 56 52 50 43 49 52 50 LP and other alternative investments 3,353 3,221 3,129 3,046 2,954 2,917 2,770 3,353 2,954 Total $ 3,512 $ 3,381 $ 3,279 $ 3,193 $ 3,113 $ 3,089 $ 2,947 $ 3,512 $ 3,113 Investment income Interest-bearing investments $ 2 $ 2 $ 1 $ (1) $ 2 $ 2 $ 3 $ 5 $ 7 Equity securities - 2 5 - - - - 7 - LP and other alternative investments 114 125 61 90 74 67 63 300 204 Investment income, before expense 116 129 67 89 76 69 66 312 211 Investee level expenses (4) (3) (5) (4) (4) (3) (4) (12) (11) Income for yield calculation $ 112 $ 126 $ 62 $ 85 $ 72 $ 66 $ 62 $ 300 $ 200 Performance-based pre-tax yield 13.0 % 15.2 % 7.7 % 11.0 % 9.5 % 8.7 % 8.4 % 12.0 % 8.9 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (14) $ (5) $ (4) $ (14) $ (12) $ (17) $ (13) $ (23) $ (42) Change in intent write-downs - - - - - - (1) - (1) Net other-than-temporary impairment losses recognized in earnings (14) (5) (4) (14) (12) (17) (14) (23) (43) Sales and other (1) 12 (1) 4 3 (5) 7 10 5 Valuation and settlements of derivative instruments (3) (3) (1) 5 (1) 2 (1) (7) - Total $ (18) $ 4 $ (6) $ (5) $ (10) $ (20) $ (8) $ (20) $ (38) THE ALLSTATE CORPORATION PROPERTY-LIABILITY INVESTMENT POSITION AND RESULTS BY STRATEGY ($ in millions) As of or for the three months ended As of or for the nine months ended

53 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 MARKET-BASED Investment Position Interest-bearing investments $ 31,630 $ 31,630 $ 31,917 $ 32,317 $ 32,995 $ 33,387 $ 33,351 $ 31,630 $ 32,995 Equity securities 1,703 1,654 1,619 1,542 1,637 1,600 1,369 1,703 1,637 LP and other alternative investments 219 191 179 165 147 122 122 219 147 Total $ 33,552 $ 33,475 $ 33,715 $ 34,024 $ 34,779 $ 35,109 $ 34,842 $ 33,552 $ 34,779 Investment income Interest-bearing investments $ 357 $ 360 $ 363 $ 363 $ 363 $ 366 $ 362 $ 1,080 $ 1,091 Equity securities 9 14 11 10 10 14 8 34 32 LP and other alternative investments - - - - 1 - - - 1 Investment income, before expense 366 374 374 373 374 380 370 1,114 1,124 Investee level expenses - - - - - - - - - Income for yield calculation $ 366 $ 374 $ 374 $ 373 $ 374 $ 380 $ 370 $ 1,114 $ 1,124 Market-based pre-tax yield 4.6 % 4.7 % 4.6 % 4.5 % 4.5 % 4.6 % 4.4 % 4.6 % 4.5 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (4) $ (8) $ (18) $ (13) $ (23) $ (22) $ (9) $ (30) $ (54) Change in intent write-downs - (1) (3) (4) (2) (4) (3) (4) (9) Net other-than-temporary impairment losses recognized in earnings (4) (9) (21) (17) (25) (26) (12) (34) (63) Sales and other 30 15 27 5 19 35 (31) 72 23 Valuation and settlements of derivative instruments (2) - (1) 3 - (1) (3) (3) (4) Total $ 24 $ 6 $ 5 $ (9) $ (6) $ 8 $ (46) $ 35 $ (44) PERFORMANCE-BASED Investment Position Interest-bearing investments $ 23 $ 20 $ 14 $ 18 $ 21 $ 33 $ 34 $ 23 $ 21 Equity securities 46 45 51 47 44 30 36 46 44 LP and other alternative investments 3,090 2,916 2,830 2,751 2,672 2,588 2,424 3,090 2,672 Total $ 3,159 $ 2,981 $ 2,895 $ 2,816 $ 2,737 $ 2,651 $ 2,494 $ 3,159 $ 2,737 Investment income Interest-bearing investments $ - $ - $ - $ 1 $ - $ 3 $ 1 $ - $ 4 Equity securities - 2 4 - - - - 6 - LP and other alternative investments 119 140 69 100 71 69 66 328 206 Investment income, before expense 119 142 73 101 71 72 67 334 210 Investee level expenses (4) (5) (4) (4) (4) (5) (4) (13) (13) Income for yield calculation $ 115 $ 137 $ 69 $ 97 $ 67 $ 67 $ 63 $ 321 $ 197 Performance-based pre-tax yield 15.1 % 18.6 % 9.8 % 13.8 % 10.0 % 10.4 % 10.4 % 14.5 % 10.3 % Realized capital gains and losses (pre-tax) by transaction type Impairment write-downs $ (2) $ (4) $ (3) $ (9) $ (14) $ 4 $ (15) $ (9) $ (25) Change in intent write-downs - - - - - - - - - Net other-than-temporary impairment losses recognized in earnings (2) (4) (3) (9) (14) 4 (15) (9) (25) Sales and other 1 (2) 1 - - (14) 14 - - Valuation and settlements of derivative instruments (2) (4) (4) 7 (1) 2 (2) (10) (1) Total $ (3) $ (10) $ (6) $ (2) $ (15) $ (8) $ (3) $ (19) $ (26) THE ALLSTATE CORPORATION ALLSTATE FINANCIAL INVESTMENT POSITION AND RESULTS BY STRATEGY ($ in millions) As of or for the three months ended As of or for the nine months ended

54 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Sept. 30, Sept. 30, 2017 2017 2017 2016 2016 2016 2016 2017 2016 Investment position Limited partnerships Private equity $ 4,650 $ 4,333 $ 4,139 $ 4,031 $ 3,839 $ 3,663 $ 3,324 $ 4,650 $ 3,839 Real estate (1) 1,296 1,320 1,325 1,281 1,301 1,374 1,399 1,296 1,301 PB - limited partnerships 5,946 5,653 5,464 5,312 5,140 5,037 4,723 5,946 5,140 Non-LP Private equity 170 171 161 151 165 179 190 170 165 Real estate 555 538 549 546 545 524 528 555 545 PB - non-LP 725 709 710 697 710 703 718 725 710 Total Private equity 4,820 4,504 4,300 4,182 4,004 3,842 3,514 4,820 4,004 Real estate 1,851 1,858 1,874 1,827 1,846 1,898 1,927 1,851 1,846 Total PB $ 6,671 $ 6,362 $ 6,174 $ 6,009 $ 5,850 $ 5,740 $ 5,441 $ 6,671 $ 5,850 Investment income Limited partnerships Private equity $ 183 $ 209 $ 114 $ 145 $ 112 $ 113 $ 85 $ 506 $ 310 Real estate 40 44 6 34 23 13 36 90 72 PB - limited partnerships 223 253 120 179 135 126 121 596 382 Non-LP Private equity 2 5 9 1 2 4 2 16 8 Real estate 10 13 11 10 10 11 10 34 31 PB - non-LP 12 18 20 11 12 15 12 50 39 Total Private equity 185 214 123 146 114 117 87 522 318 Real estate 50 57 17 44 33 24 46 124 103 Total PB $ 235 $ 271 $ 140 $ 190 $ 147 $ 141 $ 133 $ 646 $ 421 Investee level expenses $ (8) $ (8) $ (9) $ (8) $ (8) $ (8) $ (8) $ (25) $ (24) Realized capital gains and losses Limited partnerships Private equity $ (17) $ (8) $ (10) $ (26) $ (23) $ (20) $ 12 $ (35) $ (31) Real estate - 4 1 2 2 - 1 5 3 PB - limited partnerships (17) (4) (9) (24) (21) (20) 13 (30) (28) Non-LP Private equity (4) (11) (4) 16 (4) (8) (25) (19) (37) Real estate - 9 1 1 - - 1 10 1 PB - non-LP (4) (2) (3) 17 (4) (8) (24) (9) (36) Total Private equity (21) (19) (14) (10) (27) (28) (13) (54) (68) Real estate - 13 2 3 2 - 2 15 4 Total PB $ (21) $ (6) $ (12) $ (7) $ (25) $ (28) $ (11) $ (39) $ (64) Pre-Tax Yield 14.0 % 16.8 % 8.7 % 12.3 % 9.7 % 9.5 % 9.3 % 13.2 % 9.5 % Internal Rate of Return (2) 10 Year 8.5 % 8.3 % 9.5 % 10.1 % 10.1 % 10.2 % 10.5 % 5 Year 12.7 11.9 11.9 12.0 11.7 12.0 12.7 (1) (2) Includes Timber and agriculture-related assets. The internal rate of return ("IRR") is one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of return on the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. 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. THE ALLSTATE CORPORATION PERFORMANCE-BASED INVESTMENTS ($ in millions) As of or for the three months ended As of or for the nine months ended

55 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2017 2017 2017 2016 2016 2016 2016 Investment position Accounting basis Cost method $ 1,339 $ 1,269 $ 1,293 $ 1,282 $ 1,375 $ 1,284 $ 1,193 Equity method ("EMA") (1) 5,261 4,937 4,689 4,532 4,213 4,123 3,898 Total $ 6,600 $ 6,206 $ 5,982 $ 5,814 $ 5,588 $ 5,407 $ 5,091 Cost method-fair value (2) $ 1,579 $ 1,511 $ 1,525 $ 1,493 $ 1,600 $ 1,511 $ 1,466 Underlying investment Private equity $ 4,650 $ 4,333 $ 4,139 $ 4,031 $ 3,839 $ 3,663 $ 3,324 Real estate 1,296 1,320 1,325 1,281 1,301 1,374 1,399 Other 654 553 518 502 448 370 368 Total $ 6,600 $ 6,206 $ 5,982 $ 5,814 $ 5,588 $ 5,407 $ 5,091 Segment Property-Liability $ 3,467 $ 3,266 $ 3,122 $ 3,042 $ 2,913 $ 2,842 $ 2,688 Allstate Financial 3,132 2,940 2,860 2,771 2,674 2,564 2,399 Corporate and Other 1 - - 1 1 1 4 Total $ 6,600 $ 6,206 $ 5,982 $ 5,814 $ 5,588 $ 5,407 $ 5,091 Total Income Accounting basis Cost method $ 64 $ 51 $ 37 $ 26 $ 43 $ 47 $ 39 Equity method 159 202 83 152 93 79 82 Total $ 223 $ 253 $ 120 $ 178 $ 136 $ 126 $ 121 Underlying investment Private equity $ 183 $ 209 $ 114 $ 145 $ 112 $ 113 $ 85 Real estate 40 44 6 34 23 13 36 Other - - - (1) 1 - - Total $ 223 $ 253 $ 120 $ 178 $ 136 $ 126 $ 121 Segment Property-Liability $ 108 $ 118 $ 55 $ 82 $ 69 $ 60 $ 58 Allstate Financial 115 135 65 96 67 66 63 Total $ 223 $ 253 $ 120 $ 178 $ 136 $ 126 $ 121 (1) Approximate cumulative pre-tax appreciation $ 858 $ 787 $ 611 $ 511 $ 469 $ 469 $ 408 (2) THE ALLSTATE CORPORATION LIMITED PARTNERSHIP INTERESTS ($ in millions) As of or for the three months ended The fair value of cost method limited partnerships is determined using reported net asset values.

56 Definitions of Non-GAAP Measures 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 "Property Liability Results", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "Auto Profitability Measures by Brand", "Homeowners Profitability Measures by Brand" and "Other Personal Lines Profitability Measures by Brand". 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, - business combination expenses and the 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, business combination expenses and the 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. Business combination expenses are excluded because they are non-recurring in nature and the 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". Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and the 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, 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, 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 "Property Liability Results", "Allstate Brand Profitability Measures", "Esurance Brand Profitability Measures and Statistics", "Encompass Brand Profitability Measures and Statistics", "SquareTrade Profitability Measures", "Auto Profitability Measures by Brand", "Homeowners Profitability Measures by Brand" and "Other Personal Lines Profitability Measures by Brand". 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". 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". Adjusted SquareTrade operating income is a non-GAAP measure, which is computed as net income (loss) applicable to common shareholders, excluding amortization of purchased intangible assets, after-tax, and realized capital gains and losses, after-tax, and adjusted for the after-tax income statement effects of acquisition-related purchase accounting fair value adjustments to unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers. Net income (loss) applicable to shareholders is the GAAP measure that is most directly comparable to adjusted SquareTrade operating income. We use adjusted SquareTrade operating income as an important measure to evaluate SquareTrade’s results of operations. We believe that the measure provides investors with a valuable measure of SquareTrade’s ongoing performance because it reveals trends that may be obscured by the amortization of purchased intangible assets, the acquisition-related purchase accounting fair value adjustments, and the net effects of realized capital gains and losses. Amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends. We adjust for the effects of acquisition-related purchase accounting fair value adjustments because they relate to the acquisition and their effects are not indicative of the underlying business results and trends. Realized capital gains and losses 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 SquareTrade’s operations. Adjusted SquareTrade operating income highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of net income applicable to common shareholders to assess our performance. We believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted SquareTrade operating income and their components separately and in the aggregate when reviewing and evaluating SquareTrade’s performance. Adjusted SquareTrade 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 net income (loss) applicable to common shareholders to adjusted SquareTrade operating income is provided in the schedule, "SquareTrade Profitability Measures".