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)  October 17, 2007

The Allstate Corporation

(Exact name of registrant as specified in charter)

Registrant’s telephone number, including area code   (847) 402-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (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 October 17, 2007 the registrant issued a press release announcing its financial results for the third quarter of 2007. 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.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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Exhibit 99

Allstate Reports 2007 Third Quarter Results

Performance on Track in Competitive Environment; 2007 Outlook Reaffirmed

NORTHBROOK, Ill., October 17, 2007 – The Allstate Corporation (NYSE: ALL) today reported for the third quarter of 2007:

Consolidated Highlights

“Our consumer-focused strategy delivered solid results in a competitive environment,” said Thomas J. Wilson, president and chief executive officer of The Allstate Corporation. “We continued to successfully rollout our innovative and expanded Your Choice products while focusing on operational excellence. Our investment team also delivered exceptional performance in a volatile market.”

Net income for the third quarter of 2007 was $978 million, down 15.5% from the third quarter of 2006 due primarily to higher catastrophe losses and the absence of favorable prior year reserve reestimates. Net income per diluted share was $1.70, down 7.1% from the prior year quarter.  The difference between net income and net income per diluted share change from prior year quarter reflects the results of the company’s stock repurchase program. For the first nine months of 2007, net income was $3.88 billion, an increase of approximately $100 million over the same period in the prior year. Return on shareholder equity was 23.2% for the twelve months ended September 30, 2007.

Allstate Property-Liability margins were on pace with expectations for the full year 2007, with a combined ratio excluding catastrophe losses and prior year reserve reestimates of 86.0 and 84.7 for the quarter and nine months ended September 30, 2007, respectively.

*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.

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Allstate Financial operating income was $147 million for the quarter and $457 million for the nine months ended September 30, 2007. The business remains committed to improving overall returns by increasing returns on new business, sustaining focus on operational excellence and continuing to leverage diversification benefits of the enterprise.

The company’s combined investment portfolios generated net investment income of $1.60 billion for the quarter, up 3.2% over the prior year quarter, and $121 million in realized capital gains in the quarter. For the nine months ended September 30, 2007, combined portfolio net investment income was $4.81 billion and realized capital gains were $1.14 billion.

Consumer Focus

“Allstate’s strategy to attract and retain high lifetime value customers by offering innovative consumer-focused products is enabling us to succeed in the market while improving the strength of our brand,” Wilson said.

Allstate® Your Choice Auto Insurance (YCA) continued to add more than 100,000 customers per month in the third quarter, bringing the total YCA policies sold since inception to 2.8 million. With the introduction of YCA in Florida and Hawaii in the third quarter, the product is now available in 45 states and Washington D.C. representing 83% of American households. Allstate® Your Choice Home, our unique homeowners insurance product, is now available in 13 states. Our product offering for higher risk drivers, Allstate Blue^SM, is now available in 11 states and early production shows strong results.

Operational Excellence

“Our consumer-focused strategy combined with disciplined pricing and expense management drove excellent returns.” Wilson said. Allstate’s Property-Liability combined ratio, excluding the effects of catastrophes and prior year reserve reestimates, for the first nine months of 2007 is comfortably within the outlook the company provided at the beginning of the year.

Allstate Financial is improving new business returns, particularly on its fixed annuity business. The focus on returns continues to impact deposits, which were down for the quarter compared to the prior year quarter, but provides a foundation that will be used to support the introduction of innovative consumer-driven products in 2008.

“Our investments team had exceptional results in a difficult market environment, reflecting disciplined and analytical investment strategies,” Wilson said.

Investment grade securities backed by sub-prime residential mortgages, Alt-A and asset-backed collateralized debt obligations represented less than five percent of the company’s $121.13 billion combined investment portfolios. The fair value of Allstate’s holdings in these securities declined by $304 million, or 5%, in the quarter. The company’s fixed income portfolio was well positioned for the quarter’s decline in interest rates and widening of credit spreads, yielding net fixed income portfolio unrealized gains comparable to the prior quarter.

Capital Management

“To ensure that we remain in a financially strong position for our 17 million customer households, we continue to mitigate exposure to mega-catastrophes in high-risk geographic areas,” Wilson added. “We are thankful that our customers have been spared major hurricanes so far in 2007, but we remain concerned that

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not enough is being done to find a better way for our country to manage mega-catastrophes, as suggested by ProtectingAmerica.org.”

Allstate repurchased $773 million of outstanding common stock during the third quarter, representing 14.4 million shares, including shares acquired from the completion of the accelerated stock repurchase agreement initiated in the second quarter. As of September 30, 2007, $820 million remained under the current $4.00 billion repurchase program.

People

“Underlying Allstate’s solid results for the quarter is an outstanding team of Allstate employees and distribution partners,” Wilson said. During the course of the third quarter, Allstate was recognized as one of Working Mother magazine’s 100 Best Companies, Latina Style magazine’s Top 50 Companies for Latinas to Work, and Hispanic Business magazine’s Diversity Elite 60.

Allstate continues to benefit from strong senior leadership with the appointment of Michele Coleman Mayes as senior vice president and general counsel, replacing Michael “Mick” McCabe who will retire as general counsel at year-end after 36 years of successful service.

Outlook

“We are reaffirming our previous outlook that the Property-Liability combined ratio, excluding the effect of catastrophes and prior year reserve reestimates, will be within the range of 84.0 to 86.0 for 2007,” Wilson concluded.

BUSINESS HIGHLIGHTS

Property-Liability

•                  Property-Liability premiums written* declined 0.7% from the third quarter of 2006, as growth in standard auto was more than offset by a decline in homeowners due to catastrophe management actions including the increased cost of the catastrophe reinsurance program. The cost of the catastrophe reinsurance program was $227 million in the third quarter of 2007 compared to $211 million in the third quarter of last year. Excluding the cost of the catastrophe reinsurance program, premiums written decreased 0.4%.

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•                  Allstate brand standard auto premiums written grew 2.3% in the third quarter of 2007 compared to the prior year quarter. Contributing to the overall change were the following:

•                  1.3% increase in policies in force (“PIF”)

•                  0.7 point decline in the renewal ratio to 89.4%

•                  1.0% increase in six month average premium to $423. Average premium is calculated using premiums written before reinsurance

•                  4.8% decrease in new issued applications

(1)  Hurricane exposure states are Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and Washington D.C.

•                  Allstate brand homeowners premiums written declined 2.8% in the third quarter of 2007, compared to the prior year quarter, due to our catastrophe risk management actions. Excluding the cost of the catastrophe reinsurance program, Allstate brand homeowners premiums written decreased 1.5% in the third quarter of 2007 when compared to the prior year quarter. Contributing to the overall change were the following:

•                  2.7% decrease in PIF

•                  1.1 point decline in the renewal ratio to 86.3%

•                  1.6% increase in twelve month average premium to $846. Average premium is calculated using premiums written before reinsurance

•                  22.7% decrease in new issued applications.

(1)  Hurricane exposure states are Alabama, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and Washington D.C.

•                  Standard auto property damage and bodily injury gross claim frequencies increased 4.8% and 0.1%, respectively, compared to the third quarter of 2006. Auto property damage and bodily injury paid severities increased 2.8% and 7.3%, respectively. The Allstate brand standard auto loss ratio increased 5.9 points compared to the third quarter of last year to 65.8 in the third quarter of 2007, due to lower favorable reserve reestimates, higher frequencies and higher current year severities.

•                  Homeowner gross claim frequency excluding catastrophes increased 5.4% compared to the third quarter of 2006. Homeowners severity excluding catastrophes increased 11.8% compared to the third quarter of 2006. The Allstate brand homeowners loss ratio increased 18.6 points to 68.4 in the third quarter of 2007, due to higher catastrophes, current year severity and frequency.

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•                  Property-Liability prior year reserve reestimates for the quarter were an unfavorable $52 million, compared to favorable prior year reserve reestimates of $221 million in the third quarter of 2006. Favorable Allstate Protection non-catastrophe prior year reserve reestimates totaling $74 million, resulting primarily from auto claim severity development that was better than anticipated in previous estimates, were offset by unfavorable prior year reserve reestimates related to catastrophes totaling $57 million, as discussed below, and unfavorable prior year reserve reestimates for Discontinued Lines and Coverages totaling $69 million. For further information, see the Discontinued Lines and Coverages Reserves section.

•                  Catastrophe losses for the quarter totaled $343 million, compared to $169 million in the third quarter of 2006. Catastrophe losses, excluding prior year reserve reestimates, were $286 million in the quarter compared to $205 million in the third quarter of 2006, impacting the combined ratio by 4.2 points in the quarter and 3.0 points in the third quarter of 2006. Unfavorable reserve reestimates related to catastrophes from prior years totaled $57 million in the quarter compared to favorable reserve reestimates in the third quarter of 2006 totaling $36 million. The prior year reserve reestimates in the current quarter were primarily attributable to increased claim expense reserves for 2005 events.

•                  Underwriting income* was $617 million during the third quarter of 2007 compared to $1.08 billion in the same period of 2006. The decrease was due to unfavorable prior year reserve reestimates, higher catastrophe losses, increases in auto and homeowners claim frequency excluding catastrophes, and higher current year claim severity.

•                  The Property-Liability combined ratio was impacted by catastrophe losses and prior year reserve reestimates. The impacts for the three months and nine months ended September 30 are shown in the table below.

Allstate Financial

•                  Deferred fixed annuity deposits in the third quarter of 2007 were $996 million (including indexed annuities), a decrease of 43.8% from the prior year quarter but 20.3% above the second quarter of 2007. The decrease compared to the prior year quarter is indicative of lower industry-wide fixed annuity sales and our strategy to raise new business returns on capital for these products.

•                  Deposits on institutional products during the third quarter of 2007 were $500 million compared to no deposits in the third quarter of 2006. Sales of our institutional products vary from period to period based on management’s assessment of market conditions.

•                  Net income for the third quarter of 2007 was $70 million, a decrease of $65 million compared to the prior year quarter, due to higher realized capital losses.

•                  Operating income of $147 million in the third quarter of 2007 was comparable to $148 million reported in the 2006 third quarter.

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•                  Dividends of $85 million were paid by Allstate Life Insurance Company (“ALIC”) to its parent, Allstate Insurance Company (“AIC”) in the third quarter of 2007. ALIC expects to pay dividends of approximately $240 million during the fourth quarter of 2007, and may seek regulatory approval for additional dividends. These dividends complement other proactive efforts to improve Allstate Financial’s returns.

Investments

•                  Net investment income and realized capital gains for the third quarter of 2007 reflect the benefits of an ongoing strategic asset allocation process and a disciplined and analytical approach to investing.

•                  Allstate’s investment portfolios totaled $121.13 billion as of September 30, 2007, a decline of $1.14 billion from the second quarter of 2007 primarily due to lower funds associated with securities lending and securities sold with the agreement to repurchase. Total unrealized gains and losses for the fixed income portfolio were $1.11 billion as of September 30, 2007, including $280 million of unrealized losses on our sub-prime residential mortgage-backed securities and asset-backed collateralized debt obligations, compared to total unrealized gains and losses for the fixed income portfolio of $1.04 billion as of June 30, 2007. For further information on our sub-prime residential mortgage loan portfolio, see the Residential Mortgage-Backed Securities section.

•                  Property-Liability net investment income increased 4.2% to $474 million, compared to the prior year quarter. Property-Liability benefited from increased portfolio yields and increased partnership income when compared to the same period in the prior year. Property-Liability net investment income decreased by 8.3% when compared to the second quarter of 2007 due to a lower level of partnership income recorded in the current quarter.

•                  Allstate Financial net investment income rose 2.2% to $1.09 billion, compared to the prior year quarter. Allstate Financial benefited from increased partnership income and increased portfolio yields, including a favorable impact related to floating rate instruments.

•                  Alternative investments primarily are limited partnership investments that have exposure to private equity, real estate and hedge funds. These now comprise approximately $2.25 billion of total invested assets or 1.9% of the portfolio, an increase of 38.6% since December 31, 2006. Additionally, at September 30, 2007, we have commitments to invest in additional limited partnership investments totaling $1.58 billion.

•                  Net realized capital gains were $121 million on a pre-tax basis for the quarter, primarily due to $195 million of net gains related to dispositions, including $226 million of gains related to our continuing tactical reallocation of equity securities in the Property-Liability portfolio, and $48 million of net gains related to the settlement of derivative instruments; partially offset by $98 million of net losses related to valuations of derivative instruments primarily due to changes in underlying interest rates and $24 million of investment write-downs. Approximately $32 million or 33% of the losses related to the valuations of derivative instruments relate to economic hedging instruments that support investments whose valuation changes are reported in shareholders’ equity.

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THE ALLSTATE CORPORATION

CONSOLIDATED AND SEGMENT HIGHLIGHTS

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THE ALLSTATE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

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THE ALLSTATE CORPORATION

CONTRIBUTION TO INCOME