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Investor Day Allstate Insurance Company

Bob BlockSenior Vice President,Investor Relations Allstate Insurance Company

Risk Factors and Non-GAAP MeasuresThis presentation contains forward-looking statements and commitments about our auto policy businesscombined ratio; homeowners policy business combined ratio excluding the effect of catastrophes; AllstateFinancial operating return on shareholders’ equity and generation of excess capital; investment income;consolidated returns; and other measures of financial and operating performance. These statements arebased on our estimates and assumptions that are subject to uncertainty. These statements are made subjectto the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differmaterially from those described in the forward-looking statements and commitments for a variety of reasons,including the following: In general the Allstate Protection segment financial and operating performance may be materially andadversely affected by weather; by catastrophes such as earthquakes and hurricanes; by changes in theseverity or frequency of claims, which are driven by a variety of factors including inflation in the medicalsector of the economy and litigation, inflation in auto repair costs, auto parts, and used cars, andinflation in the construction industry and home furnishings; by our inability to obtain regulatory approvalfor rate changes that may be required to achieve targeted levels of profitability and returns on equity; bylevels of customer retention that are lower than we anticipate; and by unfavorable investment returns. In general the Allstate Financial segment financial and operating performance may be materially andadversely affected by mortality, morbidity, and persistency rates that are more adverse than weanticipate, unanticipated levels of operating costs and expenses, and unfavorable investment returns. Investment income may be materially and adversely affected by changes in equity prices, interest rates,commodity prices, and foreign currency exchange rates.We undertake no obligation to publicly correct or update any forward-looking statements or commitments.Measures used in this presentation that are not based on accounting principles generally accepted in theUnited States of America (“non-GAAP”) are defined and reconciled to the most directly comparable GAAPmeasure, and operating measures are defined, in the “Definitions of Non-GAAP and Operating Measures”section of this presentation.3

Leading Franchise in ConsumerProtection and RetirementLarge capitalization insurance company focused onprotection and retirementCompetitively differentiated strategy focused on uniquecustomer segmentsOutstanding brand, pricing and claims capabilitiesRecent returns below historical results reflecting highercatastrophe losses and 2008-2009 financial crisisConsistent record of proactive leadership4

Financial Highlight SummaryRevenuein billionsIncomein billions506Share 072008200920101Q 20112008NetReturn on Equity%20101Q 2011Book Value Per Share 20101Q 201102006Operating200720082009Book Value Per Share520101Q 2011Price/Book

Allstate Investor Day – Agenda Tom Wilson – Overview Mark LaNeve – Marketing and Sales Joe Lacher – Allstate Protection Matt Winter – Allstate Financial Judy Greffin – Allstate Investments Don Civgin – Shareholder Value All – Q&A Panel6

Tom WilsonChairman, President & CEO Allstate Insurance Company

Allstate strategy and focus guided byOur Shared Vision created in 20078

Increasing shareholder value throughproactive managementImproving return on equity– Improve returns from homeowners business– Maintaining high returns in auto insurance– Shifting Allstate Financial profits from spread-based tounderwritten products– Proactive investment risk and return optimization– Aggressive capital management9

Increasing shareholder value throughproactive managementGrowing market share– Increasing focus of Allstate agencies on personal touchloyalists– Encompass– Expansion of Esurance and Answer Financial– Growth of Allstate Benefits10

Proactively managing the business –Allstate ProtectionHomeowners Insurance2007 – Aggressive reduction in hurricane exposure2008 – Recapture cost of reinsurance through pricing– 1st year of significant non-hurricane catastrophe losses2009 to present– Aggressive pricing actions given continuation of highcatastrophe losses– Additional risk management actions11

Proactively managing the business –Allstate ProtectionAuto Insurance2007 – Maintained margins with modest impact on growth2009 – Profit improvement actions reduce Encompass business– Impact of homeowner actions on growth less thanexpected2010 – Profit improvement actions required in New York and Florida– Initiate strategy to utilize different customer valuepropositions for distinct customer segments2011 – Announce intention to acquire Esurance and AnswerFinancial12

Proactively managing the business –Allstate Financial2007 – Reduce fixed annuity new business by 42% due to lowreturns– Provide customers variable annuities through Prudential2008 – Expand Allstate Benefits to focus on larger employers2009 – Initiate “Focus to Win” to reduce costs by 20%– Further reduce fixed annuity business by 51%2010 – Complete “Focus to Win”– Exit fixed annuity business through banks and brokerdealers– Launch GoodForLife product in Allstate agency channel13

Proactively managing the business –Allstate Investments2007 – Initiate Risk Mitigation and Return Optimization– Reduce holdings of financial institutions and real estate2008-2009 – Reduce structured securities– Go “long” corporate credit2010 – Hedge large interest rate increase– Stay “long” in corporate credit and structured securities14

Proactively managing the business –Capital Management2008 – Suspended 2b share repurchase when 54% complete2009 – Reduced dividend by 50%– Declined opportunity to participate in TARP funding2010 – Initiated 1b share repurchase program2011 – Raised dividend by 5%, in line with income increase15

Leadership team2008-2011– Increased differentiation in performance managementand compensation– Blended existing talent with new external hires– Current Senior Leadership Team 15 members- 60% are new to the company- 40% have substantial cross-functional experience atAllstate16

Strategy of unique value propositions fordistinct customer segmentsBrand Neutral*Independent AgenciesAggregatorsPersonal TouchLoyalistsSelf DirectedExclusive AgenciesDirect Competitors*Brand Sensitive*Pending acquisition subject to regulatory approvals.1717

Allstate Investor Day – Agenda Tom Wilson – Overview Mark LaNeve – Marketing and Sales Joe Lacher – Allstate Protection Matt Winter – Allstate Financial Judy Greffin – Allstate Investments Don Civgin – Shareholder Value All – Q&A Panel18

Mark LaNeveExecutive Vice President,Marketing and Agency Sales Allstate Insurance Company19

Overview Basis of competition evolving to consumer insight, designand innovation Four distinct consumer segments based on interactionpreference (personal touch vs. self-directed) and brandpreference (brand neutral vs. brand sensitive) Allstate has a strategy for four consumer segments Building insight and innovation capability for all businessunits, including Protection and Allstate Financial Allstate master brand a strength across all segments Allstate advertising effective at connecting with targetPersonal Touch Loyalist segment20

Perspective on basis of competition –U.S. insurance petitiveGrowthConsumerinsight,design hresponseNewsophisticatedpricingmodels1990 Allstate Insurance Company2000Increased adspend andpricemessagingIncreased adspend ophisticatedpricingmodels20052010212015

Key background data 90% of consumers want a company that offers multiple lines ofinsurance Retention increases as the number of products are added to ahousehold Personal Touch Loyalists have 11% higher lifetime value due topropensity to bundle and higher loyalty 96% of Life products are sold through an agent vs. direct 52% of consumers who start shopping online bind with an agent 70% of consumers have a smartphone and seek mobileconnectivity and solutions, irrespective of consumer segmentSource: 2010 Allstate Strategic Growth Segmentation Study Allstate Insurance Company22

Consumer segments logically populate thefour quadrantsBrand Neutral*Segment 2Products andPresenceSegment 3Price andChoicePersonal TouchSelf-DirectedSegment 4Self Directed/Brand SensitiveSegment 1Personal TouchLoyalists**Pending acquisition subject to regulatory approvals. Allstate Insurance CompanyBrand Sensitive23

Research has revealed four distinctconsumer segmentsAllstateEncompassAnswer FinancialEsuranceSegment 1Segment 2Segment 3Segment 4Personal TouchLoyalistsProducts &PresencePrice &ChoiceSelf-DirectedBrand-SensitiveCore Deliverables: competitive price, claim service, 24/7 accessLocal Advisor - agentOnline or call centerPersonal service andsupport from a localadvisor (primarilyExclusive Agent)Personal shopping,service and supportfrom an advisor(primarilyindependent agent)Access to choiceand simple selfserviceinteractionsFast and easyself-serviceinteractions,especially forquoting and claimsVariety of productsand serviceWide variety ofbrands, products,and servicesWide variety ofproducts, servicesand brandsSingle or multipleproductsConsumer response behavior and delivery economics are necessary to strategically and operationally ascertain the “right” number of value propositions Allstate Insurance Company24

Allstate well positioned with PersonalTouch LoyalistsSegment 2Products andPresence Strong trusted brand with 80 yearhistorySegment 1Personal TouchLoyalists Allstate has consistently overindexed with Personal TouchLoyalists 10,000 local agents and 20,000 licensed service providers deliverstrong local footprintSegment 3Price andChoiceSegment 4Self Directed/Brand Sensitive* 24/7 integrated call center and websupport Personal Touch Loyalists prefer tobundle Protection needs with Lifeand Retirement**Pending acquisition subject to regulatory approvals.25

Key value drivers for Personal Touch LoyalistsThe best protection from a trusted local advisor at a great price“Dollar for dollar, nobody protects you like Allstate”Individualized,Local )Guided Serviceand ClaimSupportCompetitivePrice Increasing agency scale and service levels a top priority– Fewer new appointments, merger strategy, Good Hands certification Broad product portfolio– Enables bundling Customer connectivity––––AgentsCall centers and webMobile applicationsNew CRM platform Allstate Insurance Company2626

Product and service innovation is the nextfrontier of differentiationConsumerinsight,design andinnovationIncreased adspend andpricemessagingNewsophisticatedpricingmodels Your Choice Auto – Accident Forgiveness,Deductible Rewards, Safe Driving Bonus Check Drive Wise – offering a comprehensive consumertelematics program that enables price transparencyand value added services Claim Satisfaction Guarantee – only companyoffering premium refund if you aren’t satisfied withyour claim Good for Life – combines life insurance with criticalillness and severe accident benefits to deliver worryfree protection to Middle America Good Hands Roadside – changing the paradigmfrom pre-paid roadside assistance to free access Mobile solutions – developing new capabilities andenhanced functionality of mobile apps27

Allstate brand is a strength with allconsumer segments85%88%73%66% Strong brand statureAllstateState FarmGEICO61%65%62%Progressive41% High brandawareness (unaided)AllstateState FarmGEICOProgressive41%41%GEICOProgressive49%43% Strong consideration Allstate Insurance CompanySources: BrandAsset Consulting,Milward BrownAllstate28State Farm