Bank of America/Merrill Lynch 2012 Insurance Conference February 16, Tom Wilson Chairman, President & CEO The Allstate Corporation

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1 Bank of America/Merrill Lynch 2012 Insurance Conference Tom Wilson Chairman, President & CEO The Allstate Corporation

2 Safe Harbor This presentation contains forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in the 2010 Form 10-K, Form 8-K filed June 1, 2011, Form 10-Q for the third quarter 2011, and in our most recent earnings release, available on our website, allstate.com. This presentation also contains some non-gaap measures. You can find the reconciliation of those measures to GAAP measures on the Investor Relations portion of our website, allstate.com, under the Quarterly Investor Info link. 2

3 Allstate - A Uniquely Attractive Investment Opportunity Unparalleled brand and franchise Overall strategy Offer differentiated protection and retirement products and services to unique consumer segments 2012 Operating priorities Maintain auto profitability Raise returns in homeowners and annuity businesses Grow insurance premiums Proactively manage investments and capital to generate attractive, but balanced shareholder returns Longer-term focus Raise operating return on equity to 13% by 2014 Position products and distribution platforms to meet changing needs of consumers Increase market share in personal lines insurance 3

4 Differentiated Product/Service Offerings for Unique Customer Segments Key Competitors Chubb Progressive Brand Neutral Travelers Local Advice & Assistance Advice - Brand Neutral Advice Brand Specific Self Serve Commodity Buyers Self Serve Value Insurance Self Serve Key Competitors Farmers Nationwide Key Competitors GEICO Progressive State Farm Brand Sensitive 4

5 Achieve Operating Return on Equity by (%) Operating ROE Sources of Return Auto margins maintained Avg = Improved margins in homeowners Allstate Financial returns improve to 9-10% Portfolio yields maintained 5

6 Consistently Profitable Auto Business Auto performance has yielded attractive profitability and returns 125 Standard Auto Combined Ratio ( ) Comb Ratio -ALL --Industry Allstate Performance 10 Yr. Avg Yr. Avg High Low ALL ROC(1) -3 to to ALL GEICO PGR State Farm Industry Average (1) Return on capital at various premium to surplus ratios Source: All data is Allstate Brand Standard Auto Industry source is SNL 6

7 Focus on Profitable Growth: Allstate Brand Standard Auto ($B) 17 Net Written Premium 20 (#M) Items in Force Challenges: Impact of homeowner profitability actions Highly competitive market Opportunities: Broaden the pricing target Increase agency effectiveness Complete the profit actions in New York and Florida 7

8 Focus on Profitable Growth: Reduce Underperforming States Combined Ratio* Policies in Force Growth* (%) (% Inc.) Total NY/FL Q Q Q Q Total Fl/NY X FL/NY *Allstate Brand Standard Auto 8

9 Raising Homeowners Returns: Pricing 10 Rate Changes 6 Excludes California Mandatory Rate Decrease 1020 Avg. Premium / Policy (Millions) Homeowners Policies in Force Avg. Prem. Gross Written Avg. Prem. Net Earned Targeting low to mid 60s combined ratio (ex cats) by end of 2013 through rate increases, underwriting, geographical spread, and improved pricing algorithms 9

10 Homeowner Margins Improving 10 (%) Approved Rate Changes Avg. Earned Premium vs. Underlying Loss Costs (%) Inc (1) (1) Excluding mandatory rate decrease in TX/CA = 3.2% 100 (%) Combined Ratio Avg. Earned 2007 Premim 2008 Loss 2009 Costs 2010 Xcats/PYA Adjusted (1) Underlying(2) Actual (1) Includes the average cat load since 1992 (2) Excludes the impact of catastrophe losses and prior year reserve re-estimates 10

11 Homeowner Summary Goal: Generate acceptable return on capital including catastrophe losses over time How will we get there? New pricing methodologies Rate pursuit Tightened underwriting standards New product launch Expanded use of brokering capabilities Critical Measure of Progress Combined Ratio adjusted to reflect long term catastrophe loss experience 11

12 Improve Returns in Allstate Financial Grow Life Through Allstate Agencies Dramatically expand Allstate Benefits Maximize shareholder value over next 3-5 years Improve Annuity performance 12

13 Allstate Financial Targeting ROE of 9-10% in 2014 Reserves & Contractholder Funds Institutional Products 3.3% Accident & Health 3.3% Operating Return on Attributed Equity Segment Return % Attributed Equity Life 11.1% 39.6 Accident & Health 15.4% 9.9 Life 24.7% Deferred Annuities 45.3% Deferred Annuities 8.8% 30.6 Immediate Annuities -2.2% 17.4 Institutional Products -6.9% 1.1 Immediate Annuities 23.4% Allstate Financial 8.2% 13

14 Investment Portfolio Significantly Repositioned ($B) Portfolio Composition US Gov t/agencies Municipals Corporates Foreign Gov t. Structured Securities $ $ Asset Distribution Total Fixed Equities Mortgage Loans Limited Partnerships Short Term Other Unrealized Gain/Loss

15 2012 Underlying Combined Ratio (1) Guidance... Considerations Guidance Range to 91 Considerations: Homeowners underlying margins Auto margins in New York and Florida Auto margins excluding New York and Florida Investment in growth for Esurance Auto frequency and severity trends Impact on Range (1) Excludes effect of catastrophes losses, prior year reserve re-estimates, Business combination expenses, and amortization of purchased intangible assets 15

16 Capital Management Continues to be a Key Priority Capital Returned by Allstate ($ in millions)¹ % Comparison to Peers² 2000 $2,283 P&C Peers Life Peers , , % 68.8 % 68.8 % 80.9 % 75.6 % , % , , % , , ,388 Total $22,531 Allstate Chubb Progressive Travelers Lincoln National Prudential Aflac MetLife Share Repurchases Dividends 1. Includes dividends and share repurchases. 2. Represents cumulative share repurchases and dividends as a percentage of cumulative net income over

17 Allstate is an Attractive Investment Proposition Criteria Strong Competitive Position Sound Long-term Strategy Outperforms the Industry Upside to Company Valuation Current Situation #2 in Auto/HO Market Share Highly recognized brand name Can leverage diverse product portfolio Only insurer with strong franchises across distribution spectrum Auto profitability better than industry Homeowner profitability remains challenged Trade below book value Achieve profitability in homeowners creates value for shareholders Comment Broadening the target for auto Increasing the effectiveness of agencies Acquired Esurance/Answer Financial in October 2011 Long term goal set at 13% ROE by 2014 Homeowner profit improvement actions to drive earnings Historically trade at premium to peers Excellent capital management track record 17

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