2005 The Allstate Corporate Social Corporation Responsibility Report

Protect and prepare customers? How does Bring out the best in employees? Corporate Social Responsibility: Help communities thrive? Enhance our company’s value? The Allstate Corporation Corporate Social Responsibility Report

Brian Rodriguez, Fla. crashes that have a Table of Contents (left), Rochelle Roberts, tragic impact on N.Y.(middle), and individuals, families Chairman’s Letter 1 Lorraine Radcliffe, Ill. and communities. Committed to Responsibility 2 (right), members of the Launched in 2005, Strategy: Teen Advisory Panel for The Allstate Foundation Protecting and The Allstate Foundation Teen Safe Driving Preparing Customers 4 Teen Safe Driving Program focuses on A Diverse, High-Performance Environment 6 Program, chalk stencil empowering teens to Strong, Safe Communities 8 safe driving messages develop and lead grass- The Allstate Foundation 10 in Santa Monica, Calif., roots, peer-to-peer Meeting Responsibilities at the Foundation’s activities that foster to Shareholders 12 National Teen Driving safer teen driving Results: Summit last year. attitudes and behaviors. Protecting and Radcliffe, Roberts, and These teens, along with Preparing Customers 14 Rodriguez are commit- 40 other members of A Diverse, High-Performance ted to addressing a the Teen Advisory Panel, Environment 16 chronic public health hope to jumpstart a teen Strong, Safe Communities 18 issue and the number safe driving movement Foundation Initiatives 19 one killer of teens: motor and help protect genera- Allstate at a Glance 20 vehicle crashes. Roberts tions of new drivers. Corporate Data by State 21 alone has lost nine friends in car crashes. Each year nearly 6,000 teens die and another 300,000 are injured in largely preventable Chairman’s Letter Allstate’s Promise

At the heart of our business Helping People Taking a Stand Important are people and capital. Every is our Business Accomplishments day, we help protect and pre- For 75 years, genera- We are focused on the Fund and the California Allstate faced significant pare our customers, support the tions of Americans have future. As an industry Earthquake Authority, challenges in 2005. We been depending on leader, we take a strong which were needed emerged financially personal and professional Allstate to give them stand on important safe- to help protect millions strong and positioned peace of mind. Our ty and security issues of consumers and for continued success. growth of our employees and promise is to help our that affect our customers businesses from severe We upheld the high customers rebuild their and communities. New catastrophe losses. standards for integrity agencies, create value for our lives in times of loss laws and vehicle safety And today, we’re and transparency that and help prepare them features such as airbags taking a stand to protect are the foundation of our shareholders and give back to for a more financially are now standard because families, communities success. We also contin- secure future. Today, nearly four decades ago and the American econo- ued our strategic focus Edward M. Liddy the communities that we serve. Allstate protects more Allstate took a stand my from the impact of on people and commu- Chairman and than 17 million to make cars safer and large catastrophes by nities, working hard to Chief Executive Officer Our corporate social responsi- American households. reduce serious injury and advocating a more help them reach their As 70 million U.S. con- death on our nation’s comprehensive solution full potential. sumers approach retire- roads. For the last 30 that includes the cre- We are proud to share bility practices are based on years, Allstate has been ation of privately funded, ment, we are here to help with you our many sharing our auto research government-sponsored these commitments. At Allstate, provide security and corporate and communi- and repair knowledge catastrophe funds at the ty initiatives–and the peace of mind through with vehicle manufactur- state and national levels. Allstate Financial annu- values that lie behind we believe that strategic, ers to provide consumers We want to help them. In this report, ities, life insurance and with safer cars that are customers lead safer, other protection and we also showcase the socially responsible initiatives more affordable to repair. more secure lives. results we achieved in financial products. And In the 1990s, we helped when severe weather 2005 for our customers, not only create strong and vital create the Florida employees, agencies, damages homes and Hurricane Catastrophe communities and share- communities–they also help communities, we have holders. We will con- the scale and resources tinue to build on this manage our risks and enhance to act fast and meet our record of accomplish- commitments–we settle ment and find new ways our company’s performance. some 6 million claims to help create a more every year, not includ- secure future for all ing catastrophes. Americans.

1 Deep Commitment, Broad Responsibility

At Allstate, corporate responsibility means using our scale, resources and strong values to balance the interests of customers, employees, agencies, communities and shareholders. We’re implementing a deliberate strategy focused on managing our risks, empowering our employees and creating economic value. And we’re living our core values of caring, integrity, initiative and innovation at work and in the communities we serve.

2 Allstate carefully Customers Communities balances stake- Across America, 17 Strong communities holder interests million households keep our company and to manage risks, depend on Allstate to our economy growing. optimize finan- manage our business Allstate enhances the cial performance with efficiency and quality of life for and strengthen integrity. Our strong Americans in many communities. balance sheet enables us ways. We invest in to keep our promises community develop- when customers need ment. Our employees us most, find new ways and agencies support to protect their assets local organizations by today, and help them volunteering their time build financial security Customers Communities and expertise. And The for tomorrow. Allstate Foundation funds national and local nonprofit organizations that promote safety, economic education and diversity.

Allstate Scale Allstate Resources Allstate Strong Values

Workforce Shareholders We respect the com- Allstate’s deep commit- mitment and cultivate ment to ethics, integrity the talent of the and sound business employees, exclusive management con- agents, agency staff tributes to a strong and personal financial Workforce Shareholders corporate reputation representatives who that–over time–helps serve Allstate and our drive our growth and customers. We are protect our company’s widely recognized for value as business, leg- a high-performance, islative and regulatory diverse environment environments change. that creates opportuni- ties for our people to grow both personally and professionally.

3 Strategy: Protecting and Preparing Customers Forward Thinking, Quick to Respond

Customers value our innovative Building Built-in Rewards Restoring Hope Thinking Ahead Long-term products and fast, professional Relationships service. But that’s just the One key measure of We listen carefully to In 2005, Hurricane For Allstate, corporate beginning. We train and pre- corporate citizenship is our customers, and their Katrina destroyed citizenship means To that end, we support how companies treat insights help us develop 90,000 square miles of anticipating the needs prevention and pare ourselves to respond quickly their customers and products that deliver the Gulf Coast, causing of customers and society mitigation programs honor their commit- practical benefits to damages that could and taking action to that include stronger building codes and and compassionately when ments. We’re examining customers and society. reach $150 billion. help create a better every point of customer For example, customers better enforcement, Allstate met the future. We see some combined with educa- catastrophe strikes. We also interaction and improv- want fair, competitively challenge. Led by a troubling trends on the ing processes that affect priced insurance and tion programs that address the broader risks cus- catastrophe team of horizon, which may teach consumers how a customer’s decision to financial services 500 specially trained place the financial choose Allstate. For products that give them to respond before, tomers and communities face to personnel, we mobi- futures of many during and after example, we’re speeding flexibility and choice. lized thousands of Americans at risk. up response times by So, we’ve introduced catastrophes. We’re protect their quality of life. dedicated catastrophe Recent data confirms working with sending agents instant products like Allstate® specialists and that hurricanes are ProtectingAmerica.org e-mail messages when Your Choice Auto deployed 24 mobile becoming more frequent customers call after to advocate a compre- insurance, which breaks response vehicles. and severe. What’s hensive solution that working hours. We also the mold of products When the storm hit, more, Americans face closely monitor our claim establishes integrated traditionally offered by we were ready to act. greater exposure as our state and national requirement index, many insurers by pre- In the weeks that fol- population shifts to a series of measures that catastrophe funds senting consumers even lowed, the integrated vulnerable coastal areas that cover very large correlate closely with more choices, innovative efforts of agents, claim and locations prone to claims satisfaction. catastrophes. Catastrophe features and enhanced personnel, call center earthquakes. And con- funds would benefit And in the last few rewards for safe drivers. employees and com- sumers are facing higher years, we’ve been consumers by providing It includes options such municators helped insurance premiums more certain protection working to re-engineer as accident forgiveness, more than 200,000 and declining coverage, how we manage claims at the lowest possible new car replacement customers begin to because the current to integrate people, cost. A stronger, coordi- and safe driving incen- rebuild their lives. patchwork system leaves nated public/private processes, information tives that can reduce and technology in many with insufficient partnership will help customers’ premiums protection. victims recover and a way that directly and deductibles. benefits customers, We believe consumers reduce the human, as employees, agencies and who are severely affected well as economic, toll shareholders. by natural disasters of major catastrophes. should have help rebuilding their lives. 4 Protecting Those in Need Allstate employees and nearly 5,000 Allstate agents demonstrated catastrophe specialists true compassion in the were assisting customers wake of the 2005 hurri- with immediate needs canes.Working around and rebuilding their lives the clock out of Allstate after the devastating Mobile Response Units, storms.

5 Strategy: A Diverse, High-Performance Environment Aiming High, Reaching Out

When people come to work Partners in Excellence The Tools to Excel Helping Agencies Leveraging at Allstate, they receive more Grow Diversity than a job opportunity. We Allstate strives to create partial paid time off Responsible companies As Allstate’s exclusive Diversity is a corner- support the careers of nearly a safe, flexible workplace days. Employees can also understand that individ- agencies grow larger and stone of Allstate’s where employees are access the LifeWorks uals and communities more prosperous, they success. This business 70,000 employees, agents presented with opportu- website, a resource for thrive when workers support communities strategy helps us meet nities to grow personally work/life balance and expand their knowledge by creating new jobs, our growth and prof- and agency staff countrywide. and professionally. personal growth. We and acquire new skills. paying taxes and con- itability goals. Diversity We count on them to promote good health We offer employees flexi- tributing to community strengthens our work- We also encourage them to live the values of hard through on-site health ble ways to learn new organizations. We force, drives higher work, personal accounta- screenings and health skills and position support their profitable performance, connects lead healthy, balanced lives bility, integrity and and fitness seminars, as themselves for new growth by investing in us to our customers and customer commitment well as access to fitness career opportunities. the technology, educa- enhances our brand and and be productive members of that help our company facilities. And our con- Our Learning Resource tion, marketing and corporate reputation. stand out in the market- flict resolution program Network provides easy, consulting support they We gain strength their communities. This place. In turn, they look gives employees a con- direct workstation access need to win in the from the backgrounds, to Allstate to treat them structive and supportive to more than 6,000 marketplace. perspectives and experi- approach has helped us with respect and provide channel for overcoming learning activities that In 2005, we launched ences of our people. help them develop new a stimulating and sup- work-related concerns. a new field leader In a workforce of more attract and retain a highly business, interpersonal, portive work environ- Together, these pro- technical and leadership structure designed to than 37,000 Allstate talented, motivated and ment. These mutual grams demonstrate we skills. We also offer provide agency owners employees, almost 60 expectations are value the people who on-site and distance with specialized sup- percent are women and productive workforce. expressed in The commit themselves to learning programs and port. New agency nearly 30 percent are Allstate Partnership. our success. provide tuition reim- owners benefit from a minorities. Among offi- Allstate shows its bursement to help systematic “on board- cers and managers, more commitment by com- employees earn new ing” experience than 40 percent are bining attractive and degrees and professional designed to improve women and nearly 20 competitive total com- designations. In 2005, their success rate. percent come from one pensation packages with Allstate Protection creat- Consultants also work of five minority groups. programs that support ed the Talent Acceleration with some existing Our overall diversity balance and good Program, which is agents to help them performance has been health. We encourage designed to expose identify growth oppor- recognized by a broad work/life balance by participants to leadership tunities and learn to base of publications offering telecommuting development activities take advantage of new and associations that options, on-site daycare, early in their careers. support systems. monitor diversity and paid time off banks and workplace issues.

6 Maryann Matias Christine Ieuter Jim Osmon Firoz Vohra Jennifer Clark Eleanor Alandy Exclusive Agent Director of Accounting Portfolio/Program Direct Sales Professional Assistant Actuary Human Resources Consultant Management Analyst Community volunteer work Christine and her husband As a visually impaired pro- At Allstate, many employ- As an Actuary, Jennifer In her 18 years at Allstate, and marketing support considered several daycare fessional, Jim relies on the ees choose flexible work studies Allstate’s current Eleanor has fueled her from Allstate are helping options when they had Allstate Center for Assistive plans that allow them to and historical loss experi- passion for learning by Maryann build a successful their first child 18 months Technology team to bring balance work with other ence in several states and participating in the compa- agency in Chicago. ago. They chose the Little him new technologies that responsibilities such as develops rates that are ny’s tuition reimbursement Volunteerism gives her an Hands Childcare Center, enhance his job perform- families, school and daycare. adequate and competitive. program. She used the opportunity to gain visibil- located at the Allstate ance. Allstate supplies him Because our Customer Over the next two years, skills she acquired in her ity for her agency and build Northbrook Campus, for with special Job Access Information Centers operate she will broaden her expo- Masters in Education valuable contacts, while several reasons. With Speech software that 24 hours a day, seven days a sure to Allstate’s business program to design an providing much-needed Each day at work, “reads” him the words on week, we offer a variety of while participating in eight-week executive community services. Christine knows her his computer screen. different work schedules. Allstate’s Talent development program that Community events are daughter is only minutes Each time a new feature The Woodridge CIC where Acceleration Program. helps Allstate employees also an ideal forum to mar- away—right across the is added to Jim’s desktop Firoz works offers 22 Jennifer’s first assign- develop new leadership ket products like Your parking lot. Her toddler environment, the team different schedules. ment will be at the skills. Choice Auto® insurance. spends the day in a struc- makes sure it works seam- Firoz has personal com- Customer Information Today, flexible hours and Maryann is working with a tured program that lessly with his screen reader, mitments on Fridays, so he Center in Charlotte, NC, tuition reimbursement are local organization to help includes breakfast and so he can stay focused on works longer hours four where she will gain first- helping her earn a second prepare area youth to enter lunch, activities such as art helping Allstate’s under- days a week and takes hand knowledge of how advanced degree—this the job market. She also and reading, rest periods writing, pricing and prod- Fridays off. This flexibility her pricing decisions affect time an MBA. This pro- volunteers in Allstate- and access to age-appropri- uct professionals bring enables him to support customers and agents. She gram is giving her a better sponsored events such as ate toys. And at the end of together the languages of his family, pursue outside will also cultivate new grounding in Allstate’s the Auto Dismantling the day, Christine enjoys technology and business. interests and serve Allstate leadership skills and business. Demonstration and the her contact with other customers. expand her network of annual event for underpriv- Allstate parents who professional contacts. ileged children held at the actively support the Center. Healthworld Museum. 7 Strategy: Strong, Safe Communities Better Lives, Brighter Futures

Allstate enhances community Helping Communities Grow Employees and A Diverse Supplier Network life by investing in municipal Agencies in Action projects and encouraging Allstate uses its balance and community centers. Communities benefit Small businesses are the enterprises, Allstate employee and agency sheet to help communi- And through Allstate from the same values engine of the American spent $1 billion with ties build stronger infra- Bank, we support local and skills that make economy. When they these suppliers in 2005. volunteerism and charitable structures and deliver organizations that Allstate a strong and succeed, communities We continue to stream- vital services. Our work to rebuild neigh- successful competitor. gain economic strength line our processes and giving. And our economic investments in munici- borhoods and fund We lead community and benefit from the measurement systems to pal bonds have funded childcare facilities and change by encouraging jobs, training and allow small enterprises impact–through taxes paid, new assisted living facil- housing for homeless our people to support support they provide. to compete for our ities, day care centers, adults, families and local charitable organi- Allstate believes business. In the spirit of jobs created and dollars spent libraries and hospitals. people sat risk. zations and participate strongly in creating inclusion, we also invite As of December 31, Allstate also con- in volunteer activities. opportunities for diverse diverse suppliers to join with local businesses–also 2005, Allstate had tributes significantly In 2005, Allstate and businesses–including service networks created municipal bond hold- to the tax base of the our employees and enterprises owned by to meet the needs of contributes to the vitality of ings of $27 billion. communities we serve. agencies contributed women and minorities– our customers at a We also strengthen In 2004 Allstate paid more than $9.5 million and we proactively competitive price. local communities. These communities by assist- more than $550 million to community organi- invite them to partici- ing with low-interest in state and local pre- zations through the pate in our purchasing actions are good business for loans that support mium, income, use, Corporate Giving process. Over the past affordable housing real estate and personal Campaign, including three years we’ve nearly Allstate–and vital to and community redevel- property taxes. Finally, the Allstate company doubled the number of opment. We’ve invested Allstate contributes to match. women and minority- the communities we serve. almost $40 million local economies through Employees also volun- owned businesses to support the business-to-business teer their time through represented within our NeighborWorks spending. In 2005, we Allstate’s Helping total sourced expendi- system, which helps spent some $8 billion Hands tures. Using a broader ® program. In families purchase and with more than definition of diversity, 2005 more than 4,500 renovate homes. We 400,000 businesses which includes all small employees worked with make possible below- countrywide. Chicago-based charita- market-rate portfolio ble organizations to loans that bring com- support their missions. munities new affordable housing developments, commercial properties

8 Creating New nology needs. Sayers’ Opportunities products and solutions are helping Allstate boost Allstate and football great efficiency, save money Gale Sayers share a com- and better serve its mitment to diversity that customers. And in turn, underpins our successful Allstate’s business is 16-year relationship. helping Sayers create Sayers Inc., a provider of jobs, provide career computer products and growth paths to hundreds technology solutions, of high-quality people built the unique electronic with diverse backgrounds, procurement system that and contribute to local more than 13,000 Allstate communities by support- agents countrywide rely ing schools, hospitals and on for all of their tech- charitable organizations.

9 Strong, Safe Communities The Allstate Foundation

Since 1952, The Allstate Improving Focused Signature Programs Putting Values to Work Foundation has worked with Community Life thousands of nonprofit organi- The Allstate Foundation In 2005 The Allstate The Teen Safe Driving Allstate exclusive and employees can zations countrywide to help helps communities Foundation embraced program encourages agents, personal finan- qualify for $500 advance the economic new signature programs teens to develop safe cial representatives honorariums or needs- make life better for Americans. and educational inter- that will link the driving attitudes and and employees are based awards of up ests of their residents. Foundation to two criti- behaviors through highly committed to to $2,500 in college The Foundation strives to foster Each year it awards cal social issues that grassroots, peer-to-peer community service and tuition through grants to organizations threaten personal and activities and other education. Many sup- the Foundation’s stronger communities and that address three community safety. community-based port the communities Scholarship Program empower individuals and strategic areas of com- The Foundation’s initiatives. It aims to where they live and for Higher Education. munity life. Foundation Domestic Violence pro- foster safe driving atti- work by volunteering Each year The families to lead better, richer grants help with gram offers integrated tudes and behaviors, their time to local non- Allstate Foundation neighborhood revital- services and support to and help reduce the profit organizations. bestows the Ray Lynch and more fulfilling lives. ization projects; help victims of domestic unacceptable number In 2005, The Allstate Community Service residents acquire the violence and those who of teen motor-vehicle- Foundation recognized Award on an Allstate economic literacy to work on their behalf. related deaths. distinguished commu- agent who demon- help them manage It addresses and has a Last year The Allstate nity service by award- strates exceptional com- financial risks, and positive impact Foundation invested ing nearly $1 million in mitment to community teach the value of on survivors’ financial $2.6 million to support Agency Handsin the service. In 2005 this acceptance and inclu- options, so that they these programs. Community and award recognized Tom sion as a foundation can prepare for futures Helping Hands Moore of Cary, N.C., for a better America. of economic autonomy Grants to select com- for many years of global In addition, the and opportunity. munity organizations. humanitarian efforts. Foundation supports The Allstate Most recently, Tom disaster recovery by Foundation also sup- and his wife Karan helping community ports employee gifts to supported a fundraiser groups reach out to post-secondary educa- for the homeless, low-income homeown- tional institutions with generated donations ers, children, the dis- matching donations of for tsunami disaster abled and the elderly. up to $1,000 through relief and helped build its Matching Grant for classrooms and homes Higher Education pro- in remote mountain gram. In addition, chil- villages of Costa Rica. dren of agents, personal financial representatives 10 Stories of Acceptance constitution. Sachs shared his personal The Allstate Foundation stories about decades and Facing History and of struggling against Ourselves are co-spon- apartheid. He also took soring a series of public the audience behind the conversations that pro- scenes of South Africa’s mote greater under- peaceful political trans- standing, acceptance and formation and discussed tolerance. At a recent new opportunities in this event in New York City, democratic society. community members Before the event, he sat met South African down with a small group Constitutional Court of students from the Justice Albie Sachs, newly formed Facing a human rights activist History School and recognized around inspired them with the world for his role in stories of freedom creating South Africa’s and opportunity.

11 Strategy: Meeting Responsibilities to Shareholders Solid Values, Strong Leadership

Allstate believes in integrity Reaching Out to Stakeholders A Voice for Change Good Governance, Detailed and transparency. That means Disclosure supporting the interests of our As a responsible munication. Employees Companies can’t afford system and many other Shareholders expect shareholders by embracing corporate citizen, attend open town hall to be neutral when it issues critical to Allstate’s board and Allstate holds itself meetings with mem- comes to public policy achieving the objectives management team to values and policies that protect accountable to a broad bers of the senior man- issues that affect the of the corporation. In protect their interests base of constituents. agement team. We business of insurance. 2005, we took the lead and manage their assets our business, enhance our Our stakeholders expect encourage feedback Allstate advocates for in advocating a strong responsibly. current, accurate infor- through employee satis- or against public policy public/private partner- Allstate is led by corporate reputation and create mation about Allstate, faction surveys, a dedi- issues carefully and ship that would better an independent and our business and cated intranet site and thoughtfully, and works prepare and protect engaged board that long-term value. community activities a conflict resolution aggressively to effect Americans and their represents the highest and our financial per- system that provides changes that serve communities from the level of integrity and formance. We also a confidential channel to benefit Allstate’s economic consequences corporate stewardship. value their opinions to address workplace business performance, of mega-catastrophes. Our governance and use multiple chan- issues. Allstate reaches customers, shareholders guidelines, which nels to engage them out to agents through and society. Allstate are available on the in ongoing dialogue. the National Advisory strongly supported the Corporate Governance Shareholders and Board, the annual Class Action Fairness section of Act, which closed loop- www.allstate.com, other interested parties agency satisfaction mandate rigorous evalu- can access financial per- survey, an agency holes in the law and now serves to better ation of CEO and board formance information website and sales leader performance, responsible through annual and meetings. protect businesses from costly lawsuit abuse and stewardship of share- quarterly reports, We also maintain holder assets and posted on the Investor open dialogue with add value to consumers and society. We are unimpeded board access Relations section of government officials to company managers our corporate website, and regulators. Our actively engaged in advancing solutions on and information. www.allstate.com. leadership regularly such issues as asbestos Our practices and Other information meets with insurance legislation, credit-based policies consistently available on our website regulators and legisla- insurance scoring, earn high marks from includes executive tors to share positions modernization of the third-party governance speeches, news releases on issues that affect insurance regulatory organizations. and other company our company, industry communications. and nation. Allstate’s culture is built on frequent com- 12 We protect the interests of stakeholders by addressing a broad array of risks that affect our compa- ny, our customers and communities, and our society. Environmental Stewardship The Allstate Corporation Board of Directors

Allstate believes that One way Allstate implements responsible F. Duane Ackerman Edward M. Liddy all corporations can Headquarters conserves procurement practices Chairman and Chairman and play a role in managing natural energy sources as yet another way to Chief Executive Officer Chief Executive Officer and reducing environ- and reduces greenhouse reduce waste, green- BellSouth Corporation The Allstate Corporation mental risks in the gas emissions is by house gas emissions Director since 1999 Director since 1999 communities in which implementing energy and costs. We strive to they do business. saving initiatives for identify environmentally James G. Andress J. Christopher Reyes We are committed our building operation responsible opportuni- Retired Chairman and Chairman to ensuring that our and maintenance. For ties within Allstate’s Chief Executive Officer Reyes Holdings, L.L.C. Warner Chilcott PLC policies and programs example, we optimize supply chain and Director since 2002 Director since 1993 conserve and enhance energy use in heating, encourage business H. John Riley, Jr. the environment as well air conditioning, partnerships with Edward A. Brennan* Chairman as promote the safety computers and other suppliers who imple- Retired Chairman, Cooper Industries Ltd. and health of our essentials. We also help ment environmental President and Director since 1998 employees. We do so manage energy usage policies of their own. Chief Executive Officer by complying with all through procurement Sears, Roebuck and Co. Joshua I. Smith applicable government of energy efficient Director since 1993 Chairman and safety, health and supplies. Another is by Managing Partner environmental laws encouraging large-scale W. James Farrell The Coaching Group and regulations; recycling initiatives. Chairman Director since 1997 establishing programs For example, we oper- Illinois Tool Works Inc. and policies that protect ate the largest in-plant Director since 1999 Judith A. Sprieser the environment in the printing operation Former Chief Jack M. Greenberg Executive Officer communities that we in the country, where Retired Chairman and serve; and providing a we use 100 percent Transora Chief Executive Officer Director since 1999 safe, healthy workplace soybean-based ink and McDonald’s Corporation for our employees. recycle 100 percent of Director since 2002 Mary Alice Taylor paper that contains no Retired Chairman and private or secure infor- Ronald T. LeMay Chief Executive Officer mation. Allstate also Industrial Partner HomeGrocer.com Ripplewood Holdings Director since 2000 Director since 1999

*Retiring from the board in 2006 13 Results: Protecting and Preparing Customers (As of year-end 2005, unless otherwise noted.)

Our Agency Force Customers Served: Large-scale Operations: Customer Information Over 17 Million Our Claim Organization Centers: First Line Response Households Protected at Work for Our Customers

Total Total Total Total 2 28,520 29,809 11,462 11,362 Total autos insured Number of Allstate claim Number of centers countrywide professionals countrywide

201 30,000 250 1,310 2005 19,432,927 17,000 2 1,258 15,870 27,500 2 15,139 2004 19,075,017 Full-time locations in Charlotte, NC and Woodridge, IL 25,000

1 22,500 Total dwellings insured Number of dedicated Mobile Total number of calls handled Response Units 20,000 2005 9,334,598 17,500 25 7,152,726 2004 9,019,162 15,000

12,428 12,500 11,873 2,457 2,326 Life policies insured Total claims settled in 2005 Total number of employees 10,000 2,720 3,360 7,500 2005 1,701,537 6,285 6,338,674 961 5,000 5,676 2004 1,661,667 2,500

2004 2005 2004 2005 Commercial policies insured Total claim payments in 2005

Allstate Exclusive Agents Deerbrook® Agencies* Exclusive Agency EncompassSM Agencies Licensed Staff Allstate Protection 2005 443,834 $21.2 billion Allstate Personal Financial Independent Agencies Representatives 2004 453,613 Personal Financial Representative 1 Licensed Staff * Principal agency owners Includes homeowners, condos and renters. 14 Responding to Catastrophes

Restoring Hope: The 2005 Hurricanes: The 2005 Hurricanes: Our catastrophe response Unprecedented actions Long-term recovery efforts in a typical year

Size of dedicated Allstate National Number of dedicated Allstate Number of catastrophe claims3 Employee and agency donations to the Catastrophe Team catastrophe specialists deployed, Red Cross Hurricane Disaster Relief including Agency advocates1 Fund, including company match

500 5,000 400,000 $4.6 million

1Claim specialists working out of Allstate 3Some claims incurred had not yet been agencies, serving customers who seek assis- reported. tance with their claim through their agents

Average number of catastrophes Number of Mobile Response Percentage of claims settled4 The Allstate Foundation Units deployed2 Recovery Fund

58 24 Property claims 75% $1.2 million

2Allstate was the first insurance company to Auto claims 97% reach downtown New Orleans in the wake of Hurricane Katrina. On September 10, 2005– 4As of January 30, 2006. two days before the parish reopened on a limited basis to business owners and residents–Allstate Average number of set up its first MRU to serve customers. Additional company donations catastrophe claims

250,000 $655,000

Average total of catastrophe Contributions to the Allstate claim payments Family Gift Fund

$1.2 billion $235,000

15 Results: Employees and Agents A Diverse, High-Performance Environment (As of year-end 2005, unless otherwise noted.)

Partners in Excellence Tools to Excel

Healthcare Allstate Investment in Professional Education Allstate invested $168,494,202 in healthcare benefits Industry designation expenditures $6.8 million 1ConSern Loan Assistance for its employees. Tuition reimbursement $8.0 million program assists any employee or member of their family Fitness Investment in Learning Resource Network $1.6 million obtain a loan for private (K- 1 Allstate invested $521,000 in a variety of fitness ConSern Loan Program 12), undergraduate, graduate and professional education. programs for its employees. Total loans disbursed $140,446 Total number of benefiting employees 3,191 Daycare Allstate invested $404,300 in daycare services for Participation in Continuous Learning its employees. Learning Resource Network2 2The Learning Resource Course catalogs 75 Network offers virtually every Workplace Flexibility Allstate employee, agent 55 percent of Allstate employees were working Learning Activities: and agency staff a variety of flexible hours and 24 percent were telecommuting Online courses 3,705 online courses on business/ to work. Workshops 1,664 functional skills, interpersonal Offline events 805 skills, technical and leader- ship development. Compensation Total 6,249 3Non-employee learners Allstate paid $3.3 billion in non-agent employee Participation include: Exclusive Agents, compensation, payroll taxes, welfare and benefits. Of Total Allstate learners 135,813 Agency Staff, Exclusive the total number of eligible employees, 85 percent Financial Specialists, Employee 28.7% Allstate Independent Agents, 3 participated in the employee profit-sharing plan and Non-Employee 71.3% EncompassSM Independent received $47 million for the 2005 company contribu- Learners that completed at least one course in 2005: 76,418 Agents, and Deerbrook® tion, which consisted primarily of Allstate stock. Learners that accessed/attended at least one course in 2005: 80,962 Independent Agents. Total learning activity completions in 2005 568,274 Online University of Phoenix Program Undergraduate participants 140 Graduate participants 45 Onsite Executive MBA Program Current participants 43 Graduates, program-to-date 144 Onsite Open Enrollment MBA Current participants 131 Talent Acceleration Program, est. 2005 Selected participants 40 Professional and Industry Designations Achieved Senior Claim Law Associate (SCLA) 336 Inter-Industry Conference on Auto Collision Repair (I-CAR) 267 Chartered Financial Consultant (ChFC) 12 Chartered Life Underwriter (CLU) 10 Chartered Property Casualty Underwriter (CPCU) 5

16 Leveraging Diversity (As of year-end 2005, unless otherwise noted.)

Employees Job Total by Total Total Total Total Total Total Total Category Category Female White African Hispanic Asian/ Native Minority American Pacific American Islander

Officers & managers 5,314 45.0% 80.5% 10.4% 4.6% 4.1% 0.4% 19.5% Professionals 15,089 51.5% 74.1% 13.2% 5.9% 6.4% 0.4% 25.9% Technicians 37 13.5% 89.2% 2.7% 5.4% 2.7% 0.0% 10.8% Sales workers 581 25.0% 74.7% 12.6% 8.1% 3.8% 0.9% 25.3% Office workers 16,098 72.2% 64.1% 22.7% 9.6% 3.1% 0.5% 35.9% Other 120 10.8% 57.5% 20.0% 16.7% 5.8% 0.0% 42.5% Total workforce 37,239 58.9% 70.6% 16.9% 7.4% 4.6% 0.4% 29.4%

Agents1,2 Exclusive agents 12,428 22.5% 80.4% 7.9% 6.9% 4.1% 0.7% 19.6% 1Due to the independent contractor status of Allstate Exclusive Agents, response to the demographic survey is strictly voluntary. The percentages listed are based on a response rate of 65 percent (8,277 survey records) in 2005. 2More than 3,200 Allstate agents speak languages other than English for a total of at least 62 different languages.

Measuring the Employee Satisfaction Agency Relationship Exclusive Agents Personal Financial Independent Quality of Survey Survey Representatives Agent our Work

Environment Response rate 94% The Agency Relationship Survey Response rate 69% Response rate 64% Response rate 43% Satisfaction rate 88% measures the business relationship Satisfaction rate 78% Satisfaction rate 76% Satisfaction rate 84% and Agency our agents, personal financial repre- The Employee Satisfaction Survey measures the sentatives and independent agents Relationship quality of leadership and the work environment have with Allstate. The satisfaction at Allstate. The satisfaction rate represents rate represents the percentage the percentage of employees who are either of questions that were answered “completely satisfied” or “satisfied” with work- “favorably.” The survey is ing for Allstate. The survey is anonymous and anonymous and confidential, and confidential, and is offered annually to 100 is offered annually to 100 percent of Allstate employees. percent of our agency force.

17 Results: Strong, Safe Communities Corporate Initiatives (As of year-end 2005, unless otherwise noted.)

Community Investments Supplier Diversity Employee and Agency Giving

Municipal bonds1 $27 billion Total Sourced Spend1 $4.5 billion Participation in the 2005 Giving Campaign NHSA Affordable Housing Loans2 $40 million Inclusive Diverse $1 billion, or Employees 23,670 Economically Targeted Investments3 $250 million Suppliers Spend2 22.3 percent of Percentage of total eligible employees 63.8 1Allstate’s investments in municipal bonds help fund projects sourced spend that improve community infrastructure and extend vital services. Targeted Diverse $163 million, or Agencies 3,683 2Allstate’s investment in the NeighborWorks system helps Suppliers Spend3 3.7 percent of families purchase their first homes or complete necessary home Percentage of total eligible agencies 27.4 renovations. sourced spend 3Allstate’s Economically Targeted Investments are long-term 1Expenditures sourced by an Allstate employee, including expen- Overall 27,353 below-market rate portfolio loans extended to established credit- ditures with Supplier Networks which are offered (as a choice/ worthy institutions that are driving the redevelopment of option) to customers and claimants. Percentage of total eligible participants 54.1 communities across America. This total includes NHSA loans. 2Allstate spend with 12 categories of diverse suppliers. These 12 categories are the inclusive group of suppliers identified by the Employee and agency donations* $6.7 million Small Business Administration as diverse and of special interest. It includes Small Business Concerns, a highly represented Allstate company match $2.8 million category in Allstate spend. Total $9.5 million 3Allstate spend with: Minority Women-Owned Enterprises, Minority-Owned-Enterprises and Women-Owned-Enterprises. These three categories are among 12 identified by the Small 2005 Giving Campaign Top 10 Charities Business Administration as diverse and of special interest. American Red Cross, Hurricane Katrina Relief Fund $2.3 million American Cancer Society, Ill. Chapter $100,044 American Cancer Society, National $75,688 Corporate Volunteerism Initiatives American Red Cross, National $60,153 United Way of Lake County $58,692 Alzheimer’s Associations, National $56,079 Make-A-Wish Foundation of America, National $55,473 $51,068 Allstate Home Office Helping Hands® United Way of Metropolitan Chicago volunteer opportunities 8,000 American Diabetes Association, Number of people affected 20,000 National $49,475 Home Office Adopt-a-Family Program, American Heart Association, National $46,140 Total families helped 386 *In 2005 Allstate matched donations to the Red Cross Katrina Fund dollar for dollar. All other donations were matched 15 percent. Allstate donated an additional 5 percent to the United Way.

18 Strong,Vibrant Communities Foundation Initiatives

The Allstate Foundation Activities 2005

National Foundation National programs $ 3,512,500 Grants Other grants 77,000 Total $ 3,589,500 Regional Foundation Grants Total $ 5,407,500 Chicagoland Programming Support1 Total $ 1,327,500 Signature Programs Domestic Violence $ 1,307,920 Initial Investment Teen Safe Driving 1,376,387 Total $ 2,684,307 Employee and Agency Hands in the Community $ 971,000 Agency Programs Matching grants, 409 schools 260,158 Scholarship programs 400,000 Helping Hands grants, 271 grants issued 144,000 Total $ 1,775,158 Disaster Recovery Earmarked for New Orleans $ 700,000 Fund Earmarked for Mississippi Gulf Coast 300,000 Earmarked for Texas Gulf Coast 200,000 Total $ 1,200,000 Total $15,983,965 1Additional Chicagoland programming dollars are distributed through the Allstate Midwest Regional Foundation and included in the Regional Programming Grants total.

19 Allstate at a Glance

Allstate Today Our People Our Customers Our Economic Financial Highlights Impact

The Allstate The Allstate Allstate provides In 2005 Allstate paid Net Income Per Return on Shareholders’ Corporation is the Corporation encom- insurance products to $21.2 billion in total Diluted Share Revenues Equity Equity nation’s largest publicly passes nearly 70,000 more than 17 million Property-Liability (in dollars) (in billions) (percent) (in billions) held personal lines professionals. Of our households. We insure insurance claims and $4.54 $35.4 15.0% $21.8 $33.9 insurer. A Fortune 100 employees, 29.4 per- one out of every nine claims expense. The $20.2 company with $156 cent are minorities; autos and one out of Allstate Foundation billion in assets, 58.9 percent are every eight homes in donated nearly $16 Allstate sells 13 major women. In 2005 the U.S., and are one million to nonprofit lines of insurance, Allstate paid $3.3 of the country’s leading organizations including including auto, proper- billion in employee life insurers. $400,000 in scholar- $2.64 ty, life and commercial. compensation payroll ships. The Allstate 8.4% Allstate also offers taxes,welfare and Corporation, its retirement and invest- benefits. Our Network employees and agents ment products and Approximately 85 donated $9.5 million banking services. percent of eligible through the Giving employees participate Campaign to nonprofit in the employee profit organizations. Allstate sharing plan and Allstate has operations currently holds $27 received $47 million in 49 states and billion in municipal in the 2005 company Canada. Customers can bonds, and more than 20042005 2004 2005 2004 2005 2004 2005 contribution, which access Allstate products $250 million in com- consisted primarily of and services through munity investments. Financial Strength Ratings Allstate stock. Allstate agencies, Allstate.com, and Standard Moody’s A.M. Best1 & Poor’s2 Investors3 1-800-Allstate. In addition, the company’s Allstate Insurance A+ AA Aa2 Company (Superior) (Very Strong) (Excellent) EncompassSM and Deerbrook® brand Allstate Life A+ AA Aa2 Insurance Company (Superior) (Very Strong) (Excellent) insurance products are sold exclusively through 1A.M. Best Insurance Financial Strength Rating independent agents. Superior; Second highest of A.M. Best’s 13 active company ratings. Ratings range from A++ to D. 2S&P Insurance Financial Strength Rating Very Strong; Third highest of S&P’s 20 active company ratings. Ratings range from AAA to CC. 3Moody’s Insurance Financial Strength Rating Excellent; Third highest of Moody’s 21 active company ratings. Ratings range from Aaa to C. 20 Vital Statistics (As of year-end 2005, unless otherwise noted.)

Personal Property Personal Property Business to The Allstate Corporation Allstate Allstate Autos Dwellings Life Policies Commercial and Casualty and Casualty Business Number of Municipal Group of Companies State Agents 1 Employees Insured Insured2 Insured Policies Claim Payments Claims Settled Spending Businesses Bond Holdings State Taxes 2004 AK 33 52 76,229 45,274 6,432 5,019 $58,223,994 20,589 $29,747,766 1,415 $81,847,007 $3,389,165 AL 201 625 294,341 129,589 26,324 6,529 $228,884,775 108,452 $514,556,275 6,610 $513,653,920 $10,969,163 AR 99 44 126,250 54,428 10,194 4,607 $58,616,547 31,979 $27,130,050 4,038 $349,190,653 $4,519,374 AZ 319 464 376,050 221,934 32,990 7,830 $232,846,673 148,813 $123,873,990 8,430 $705,173,292 $13,041,670 CA 1,241 2,442 2,022,244 1,097,626 194,354 42,628 $1,228,809,367 583,179 $735,021,434 39,057 $3,290,207,480 $71,183,322 CO 256 329 265,338 136,850 23,333 4,450 $123,411,857 67,967 $69,934,905 6,833 $764,527,779 $4,032,519 CT 173 351 317,448 154,334 27,072 5,293 $195,157,921 88,645 $129,585,513 4,491 $402,774,844 $7,414,039 DE 24 9 23,112 21,385 3,300 1,462 $18,862,093 8,407 $13,906,288 972 $187,277,557 $964,678 DC 11 3 15,918 16,409 414 376 $13,141,864 8,485 $14,736,763 885 $10,401,106 $638,352 FL 999 2,514 1,629,865 553,271 131,260 62,520 $1,909,247,615 655,802 $738,620,415 37,148 $1,058,738,391 $53,984,227 GA 423 1,061 693,098 318,193 57,012 11,175 $420,813,411 201,178 $296,777,015 13,418 $277,396,958 $19,921,515 HI 39 47 59,366 42,665 7,906 1,837 $28,589,426 13,744 $13,468,960 1,769 $181,847,612 $3,075,636 IA 45 24 64,853 24,849 5,443 1,133 $20,239,208 11,570 $13,117,502 2,075 $98,913,608 $1,280,294 ID 77 78 129,516 54,610 7,134 2,124 $44,606,531 31,283 $19,139,668 2,524 $11,072,332 $3,008,243 IL 612 10,175 890,516 549,301 102,776 14,158 $520,453,765 261,730 $1,163,619,336 21,786 $1,759,561,152 $19,534,325 IN 234 468 295,251 133,080 34,914 3,126 $148,254,763 71,387 $61,861,247 7,818 $927,921,727 $5,611,111 KS 85 171 99,229 37,462 9,183 4,459 $37,184,118 22,152 $18,868,807 3,018 $229,524,812 $1,427,127 KY 141 133 198,506 90,986 18,881 3,163 $95,975,743 43,521 $78,507,492 6,266 $173,759,967 $5,688,270 LA 309 431 422,503 211,587 48,283 10,125 $1,400,938,738 429,931 $144,792,862 10,701 $506,800,765 $15,303,481 MA3 N/A 181 N/A N/A N/A N/A N/A N/A $53,166,219 3,022 $461,594,715 $713,418 MD 295 566 461,265 250,742 44,653 7,711 $288,434,646 174,179 $138,337,116 6,519 $116,993,411 $13,572,288 ME 30 87 98,947 32,167 4,690 1,455 $37,821,612 24,017 $17,588,372 2,037 $102,835,474 $2,012,006 MI 353 645 367,553 178,125 50,386 5,173 $286,134,183 132,852 $170,914,097 14,009 $558,881,119 $2,752,893 MN 153 143 190,854 90,924 12,822 1,908 $122,443,123 58,702 $92,277,375 5,578 $334,492,222 $5,499,101 MO 209 63 188,005 89,988 17,341 3,430 $99,851,809 48,628 $51,456,349 5,406 $582,791,307 $4,113,443 MS 129 156 126,789 70,677 13,789 2,706 $489,529,712 142,936 $25,867,934 4,279 $166,386,377 $5,616,465 MT 30 14 39,560 11,093 3,378 3,331 $20,495,849 8,091 $10,512,738 1,604 $39,921,565 $1,562,095 NC 341 1,719 593,670 235,299 46,311 12,256 $253,035,809 159,970 $155,997,230 10,425 $493,569,115 $15,424,521 ND 7 3 11,260 3,805 1,079 635 $6,612,018 3,049 $1,681,021 518 $92,742,288 $272,615 NE 45 1,042 54,429 22,606 6,054 1,734 $22,925,084 12,604 $19,701,984 2,748 $354,403,696 $1,227,335 NH 49 24 88,356 35,510 8,226 1,599 $43,537,826 26,195 $19,508,147 1,663 $152,750,825 $2,213,400 NJ 209 949 696,589 306,903 38,955 21,477 $566,549,870 181,077 $362,924,272 13,782 $937,920,467 $23,117,753 NM 113 104 150,915 72,640 12,851 4,697 $92,387,003 48,415 $27,191,707 3,084 $193,773,450 $5,467,117 NV 144 161 176,661 90,779 16,904 3,568 $129,055,005 57,280 $91,495,796 3,926 $186,623,419 $9,858,510 NY 966 2,057 1,567,678 921,779 128,658 51,334 $1,261,976,056 470,708 $776,138,547 30,505 $1,383,257,810 $56,786,752 OH 483 1,829 715,534 351,138 62,602 6,312 $307,365,543 176,422 $130,360,452 15,057 $904,019,629 $11,302,268 OK 165 134 207,013 64,285 16,305 3,646 $104,831,518 45,184 $34,438,264 3,995 $184,903,919 $5,737,796 OR 208 218 259,645 119,010 23,151 5,185 $107,177,852 61,798 $56,810,303 6,486 $511,309,552 $4,713,489 PA 530 1,386 953,612 489,932 89,015 9,925 $635,608,031 318,594 $539,870,313 20,325 $974,903,566 $25,997,075 RI 46 17 75,814 34,441 6,458 1,264 $45,090,249 23,420 $20,702,808 1,195 $253,034,170 $2,101,482 SC 182 260 476,398 183,584 27,567 7,639 $215,444,196 132,666 $85,049,828 6,730 $353,157,759 $8,974,741 SD 6 4 6,025 2,708 619 445 $2,840,401 1,258 $1,403,912 476 $37,909,860 $399,634 TN 242 339 298,155 166,821 33,164 5,283 $145,960,802 73,058 $77,224,095 7,967 $264,819,212 $9,480,423 TX 1,190 3,055 1,989,561 839,367 155,019 54,136 $1,403,083,922 689,666 $524,203,765 35,861 $2,903,410,060 $48,801,146 UT 175 174 319,077 123,868 18,204 5,755 $127,406,689 89,286 $53,740,604 3,844 $264,074,186 $6,962,155 VA 329 1,876 587,119 275,501 51,190 11,084 $266,348,366 169,840 $108,426,424 8,507 $520,281,592 $19,142,663 VT 11 13 46,555 17,571 2,602 634 $19,201,624 13,064 $8,336,550 1,036 $86,757,605 $1,029,335 WA 324 416 460,801 245,844 44,279 10,885 $259,061,117 138,560 $147,177,016 11,422 $629,070,840 $11,712,075 WI 86 125 134,728 77,331 10,466 2,736 $55,406,311 26,812 $42,282,724 4,477 $366,095,303 $2,259,572 WV 43 30 70,047 29,837 5,743 2,234 $40,434,838 17,344 $22,323,689 2,024 $248,729,950 $4,267,225 WY 14 3 20,679 6,490 1,851 1,643 $8,528,630 4,185 $3,405,120 712 $15,856,851 $231,596 1Exclusive Agents 2Includes homeowners, condos and renters 3Allstate does not write Allstate-brand policies in Massachusetts 21 The Allstate Corporation 2775 Sanders Road Northbrook, IL 60062-6127 (800) 547-3226 www.allstate.com

An electronic copy of this report is available online at: www.allstate.com/csr

Additional information about Allstate’s commitment to the community is available online at: www.allstate.com/community

An electronic copy of the Corporate Summary Annual Report

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