UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.

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) April 18, 2006

The Allstate Corporation

(Exact name of registrant as specified in charter)

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

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

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

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

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

Section 2. – Financial Information

Item 2.02.              Results of Operations and Financial Condition.

On April 18, 2006, the registrant issued a press release announcing its financial results for the first quarter of 2006. A copy of the press release is furnished as Exhibit 99 to this report.

Section 9. – Financial Statements and Exhibits

Item 9.01.              Financial Statements and Exhibits.

(d)                                 Exhibits

99                                    Registrant’s press release dated April 18, 2006

2

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, thereunto duly authorized.

3

Exhibit 99

For Immediate Release

Allstate Reports 2006 First Quarter Results

Net Income EPS Increased 34%

Operating Income EPS Increased 20%

NORTHBROOK, Ill., April 18, 2006 – The Allstate Corporation (NYSE: ALL) today reported for the first quarter of 2006:

Consolidated Highlights(1)

•                  Property-Liability premiums written(1) grew 2.2% over the first quarter of 2005, driven by Allstate brand standard auto and homeowners increases of 4.1% and 2.4%, respectively.  Excluding the cost of catastrophe reinsurance, premiums written grew 2.7% in the first quarter compared to the first quarter of last year.  Policies in force (“PIF”) increased for Allstate brand standard auto and homeowners 2.8% and 2.6%, respectively, from March 31, 2005 levels.

•                  Property-Liability underwriting income(1) increased $261 million to $1.24 billion compared to $981 million in the first quarter of 2005, driven by increased premiums earned, continued favorable auto and homeowners loss frequencies excluding catastrophes, and net favorable prior year reserve reestimates, partially offset by higher restructuring charges and current year claim severity.

•                  Allstate Financial operating income for the quarter was $144 million, compared to $149 million in the first quarter of 2005.  The decline was primarily due to restructuring charges of $10 million after-tax in the 2006 period.  Premiums and deposits(1) were $2.68 billion, a decrease of 32.7% over the first quarter of 2005, due primarily to a 68.1% reduction in opportunistic institutional product sales and lower fixed annuity deposits reflecting reduced consumer demand in the current interest rate environment and a continued focus on product returns.  In March, we entered into an agreement with Prudential Financial, Inc. to dispose of substantially all of our variable annuity business through reinsurance.

•                  Book value per diluted share increased 1.6% compared to March 31, 2005 and 3.1% compared to December 31, 2005.  Book value per diluted share excluding the net impact of unrealized net capital gains on fixed income securities(1) was $30.90 at March 31, 2006, reflecting an increase of 5.0% compared to March 31, 2005 and 6.3% when compared to December 31, 2005.

•                  Allstate is increasing annual operating income per diluted share guidance for 2006 (assuming the level of average expected catastrophe losses used in pricing for the remainder of the year) to a range of $6.00 to $6.40, compared to the previously announced range of $5.60 to $6.00.

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

1

“This is an excellent start to 2006 with net and operating income per diluted share up 33.5 percent and 20.4 percent, respectively, compared to the first quarter of 2005,” said Edward M. Liddy, chairman and chief executive officer, The Allstate Corporation. “The profitability of Allstate brand standard auto and homeowners insurance remains very strong as our intense focus on generating consistent, profitable growth continues to serve us well.”

“Underwriting income for our Property-Liability unit was very strong at $1.24 billion, an increase of 26.6 percent compared to the first quarter of 2005 as positive trends in the frequency of claims in our auto and homeowners insurance lines continued. Though many states were affected by early spring storms, catastrophe losses were relatively light in the first quarter. Nonetheless, our national catastrophe team was rapidly deployed to several states in the southeastern part of the country to begin helping our customers put their lives back together following the recent severe weather that brought tornados, high winds and hail.

“Allstate brand homeowners premium written grew 2.4 percent and policies in force grew 2.6 percent. In pursuit of our goal to provide shareholders an acceptable, less volatile rate of return on the risks assumed in our property business, we made good progress on the implementation of key elements of our property catastrophe management strategy in the quarter and we continue to examine a variety of potential future actions.  We are intentionally limiting the amount of new property insurance business we add to our books, particularly in parts of New York, Texas, California and certain other states, along with reducing our existing catastrophe exposure in coastal New York and Florida.  We have submitted nearly two-thirds of more than 300 property insurance rate filings we plan to make in catastrophe-prone states as we seek to reflect the cost of our new reinsurance program. In most states, we are no longer offering new coverage for damage caused by earthquakes, which is generally an optional coverage on property insurance policies. For our affected customers, we are making every effort so that participating Allstate agents can offer them insurance protection from another insurance carrier.

“Allstate brand standard auto premium written grew 4.1 percent and policies in force grew 2.8 percent.  Allstate^® Your Choice Auto, our innovative new auto insurance product, continues to do well. We have sold more than 770,000 policies since we introduced the product in Oregon in late 2004. In the quarter, we launched the product in 11 states and the District of Columbia and the product is now available in 38 states and D.C.  In the first quarter of 2006, approximately two-thirds of standard auto new issued applications were Allstate Your Choice Auto policies and almost half of the Allstate Your Choice Auto policies were in the higher value platinum and gold segments. As this new product rollout continues, it will receive local and national advertising support. We are also making good progress on our initiatives aimed at improving the customer experience and are further refining our Tiered Pricing. While competition remains strong in our auto insurance business, we remain confident in our ability to grow market share profitably over time.

“Allstate Financial generated operating income of $144 million compared to $149 million in the first quarter of 2005 with the decrease primarily due to $10 million of after-tax restructuring charges. Premiums and deposits were $2.68 billion, which were down 32.7 percent compared to the first quarter of 2005 principally because of reduced institutional sales. In the quarter, we announced a strategic decision to dispose of substantially all of our variable annuity business through a reinsurance agreement with Prudential Financial, Inc.  In addition, Prudential will become the exclusive provider of variable annuities to be sold through our Allstate agencies to ensure that our customers will continue to have this important retirement product available through their Allstate agency. This transaction, expected to be completed in the second quarter of 2006, supports an important strategic objective to further develop and focus on our suite of top-tier products while improving the return on capital invested in this business. Allstate Financial is making great progress toward simplifying its business and will be well-positioned to focus on its core products of fixed and equity-indexed annuities and life insurance.

“As we report financial results for the first quarter of 2006 today, we also begin a new chapter in the history of Allstate Insurance Company, which celebrated its 75^th anniversary yesterday.  What began as an idea conjured up on a commuter train on the way into Chicago is now a thriving, financially strong, independent company.  I am pleased to report our next 75 years are off to a great start,” continued Liddy. “I have no doubt our founders would be proud of what their idea has become, would marvel at our accomplishments, and would agree that our future remains very bright.”

2

Consolidated Highlights

•                  Restructuring charges in the first quarter of 2006 were $107 million pre-tax compared to $18 million in the first quarter of last year primarily due to a $97 million charge related to the Voluntary Termination Offer (“VTO”) made to most employees located at Allstate’s headquarters during the quarter.  The cost savings related to this program are expected to be partially reinvested in growth initiatives.

3

Property-Liability Highlights

•                  Allstate brand standard auto and homeowners PIF increased 2.8% and 2.6%, respectively, from March 31, 2005 levels, compared to increases of 2.9% and 3.4%, respectively, in the fourth quarter of 2005 over the fourth quarter of 2004.  PIF results exclude Allstate Canada.

•                  New issued applications for Allstate brand standard auto increased 1.1% compared to the first quarter of 2005.  The continued roll-out of Allstate Your Choice Auto, refinements to Tiered Pricing and the continued emphasis on marketing programs contributed to these results.  New issued applications for Allstate brand homeowners decreased 11.8% compared to the first quarter of 2005 due to our catastrophe risk management actions.  New issued applications exclude Allstate Canada.

•                  Standard auto six month average premium of $419 grew 1.0%, while homeowners 12 month average premium of $831 grew 5.9% from the first quarter of 2005.  Average premium is calculated using premiums written before reinsurance.

•                  The renewal ratios for Allstate brand standard auto and homeowners were 89.9 and 87.0, respectively, compared to 90.7 and 88.5 in the prior year first quarter.  The standard auto declines are due to competitive pressures in certain states and the homeowner declines are primarily due to our catastrophe risk management actions.  Renewal ratios exclude Allstate Canada.

•                  Prior year favorable reserve reestimates for the quarter totaled $211 million, compared to $80 million in the prior year first quarter, resulting from more favorable late reported loss development and claim severity that was better than anticipated in previous estimates in Allstate Protection.  Reserve reestimates include net favorable reserve reestimates of $54 million after reinsurance related to the 2005 hurricanes.

4

Allstate Financial Highlights

•                  Deferred fixed annuity deposits in the first quarter of 2006 were $906 million, a decrease of 33.6% from the prior year.  This decrease was partially offset by deposits on equity indexed annuities of $187 million, a 16.1% increase over the first quarter of 2005. Consumer demand for deferred fixed annuities has remained soft due to increased competition from certificates of deposit and other short-term instruments in the current interest rate environment.  Additionally, pricing to achieve higher returns contributed to lower fixed annuity deposits.

•                  In March we entered into an agreement with Prudential Financial, Inc. to dispose, through reinsurance, of substantially all of our variable annuity business.  Total consideration is expected to be approximately $581 million, subject to adjustment for changes in equity markets, interest rates and market volatility between the effective date of the agreement and the closing of the transaction.  We entered into derivative transactions to economically hedge substantially all of our exposure to these market related adjustments.  In the first quarter of 2006, the loss on disposition of operations related to this transaction totaled $35 million, after-tax, comprised of the change in fair value of the derivatives hedging the ceding commission as well as costs incurred to date.  First quarter 2006 contract charges associated with the affected business were $76 million on separate account balances of $14.77 billion and general account balances of $1.65 billion as of March 31, 2006.  The agreement is subject to regulatory approval and is expected to close in the second quarter.  The disposition is expected to result in the recognition of a small deferred gain at closing related to the reinsurance agreement. This gain will be amortized over the life of the reinsurance agreement and reported as a gain on disposition.  Concurrent with the closing of the transaction, we will adjust the loss on disposition of operations for any additional change in fair value of our hedging derivatives as well as any additional transaction expenses incurred.

•                  Investments as of March 31, 2006 increased 1.8% over March 31, 2005 primarily due to sales of fixed annuities and funding agreements.

5

THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

6

THE ALLSTATE CORPORATION

CONTRIBUTION TO INCOME

7

THE ALLSTATE CORPORATION

COMPONENTS OF REALIZED CAPITAL GAINS AND LOSSES (PRETAX)

(1)          To conform to the current period presentation, the prior period has been reclassified.

(2)          In the first quarter, the Company recognized $65 million of losses related to a change in our intent to hold certain securities with unrealized losses until they recover in value.  The change in our intent is primarily related to $1.01 billion of securities with unrealized losses totaling $30 million that may be used to fund net general account liabilities to be transferred at the closing of Allstate Financial’s variable annuity reinsurance agreement with Prudential Financial, Inc.  Additionally, continued yield enhancement strategies, strategic asset allocations and comprehensive reviews of our portfolios for both Allstate Protection and Allstate Financial, as well as a liquidity strategy in the Corporate and Other segment, are expected to result in the sale of $3.19 billion of securities with unrealized losses totaling $35 million.

8

THE ALLSTATE CORPORATION

SEGMENT RESULTS

(1)          To conform to the current period presentation, the prior period has been reclassified.

(2)          The decline in Allstate Financial operating costs and expenses relates primarily to the impact of moving its loan protection business to the Allstate Protection segment and a reclassification of certain reinsurance expense allowances.  The loan protection business had premiums of $27 million, operating costs and expenses of $15 million and a negligible impact to operating income in the first quarter of 2005.

9

THE ALLSTATE CORPORATION

UNDERWRITING RESULTS BY AREA OF BUSINESS