1. 2005 The Allstate Summary
Corporation Annual
Report
1. Manage catastrophic exposures?
2. Keep our business growing?
How does Allstate:
3. Create loyal customers?
4. Deliver value and results?

2. Front Cover
Compassion and
Commitment
Allstate employees and
agents showed true com-
passion and commitment
in the wake of Hurricane
Katrina. Kathleen and
Lester Null fled their home
in Meraux, Louisiana,
just before the storm hit.
Unable to find shelter after
hours of driving, they
made their way to the
West Memphis, Arkansas,
office of Allstate Agent
David Tyler, who had posted
signs throughout town
offering to assist Allstate
evacuees. Tyler, who
ultimately helped more
than 200 people, arranged
for lodging as well as
check-cashing and other
services, and provided vital
logistical and emotional
support until their local
agent could restore service
to his agency.
Tyler (far right) and claim
adjuster Kim Eubanks
(second from left) recently
visited the Nulls’ damaged
residence. As they surveyed
the empty structure that
used to be their home,
Lester and Kathleen told
the story of their unimagin-
able loss and of the hope
that came with the help
of Agent Tyler. In Lester’s
words,“I will thank that
man until I die.”

3. Giving Back to the
Community
The Allstate Corporation
2005 Corporate Social
Responsibility Report
highlights the socially
responsible measures
that not only help create
strong and vital commu-
nities, but also help
manage our risks and
enhance our company's
performance. The report
is available online at
www.allstate.com/csr.

4. Financial Highlights
Measuring our Performance
Highlights: In 2005, Net Income per Operating Income* Revenues Return on Equity Book Value per Diluted Shareholders’ Equity
Allstate incurred In 2005, operating income Revenues rose 4.3 percent to Return on average Shareholders’ equity, which
Diluted Share Share Excluding the Net
$5.7 billion in losses Net income per diluted was $1.6 billion. This is a $35.4 billion in 2005. beginning and ending is the company’s total assets
Impact of Unrealized Net
share, which decreased 41.9 common measure used by Revenues indicate Allstate’s period shareholders’ equity, minus total liabilities,
Capital Gains on Fixed
primarily related to
Income Securities* increased
percent in 2005, divides net the investment community total premium and invest- which measures how well indicates the book value
the three devastating
income by the number of to analyze our results. ment results. Allstate used shareholders’ by 1.6 percent in 2005. of the ownership interest
hurricanes in the Gulf weighted average diluted Operating income reveals equity to generate net This measure, commonly of Allstate shareholders.
states. Nevertheless, shares outstanding. It trends in our insurance and income, decreased to used by insurance investors It declined 7.5 percent
demonstrates net income financial services business 8.4 percent in 2005 from as a valuation technique, in 2005 to $20.2 billion
we generated net
during the year that is that may be obscured by 15.0 percent in 2004. is shareholders’ equity less from $21.8 billion in 2004,
income of $1.8
attributable to each share business decisions and unrealized net capital gains reflecting a net return
billion, which pro- of stock. economic developments on fixed income securities of capital to shareholders
duced an 8.4 percent unrelated to the insurance divided by the number of through dividends and
return on equity. underwriting process. diluted shares outstanding share repurchasing.
on December 31.
We also repurchased
43.8 million shares at
(in dollars) (in billions) (in billions) (percent) (in dollars) (in billions)
a cost of $2.5 billion.
Our total shareholder $4.54 $3.1 $21.8
$35.4 15.0% $29.08
$28.62
return of 7.0 percent $33.9
outpaced the S&P $20.2
500 in 2005, as it has
in each of the last
five years, and as
it has cumulatively
since we became a
public company in
June 1993.
$2.64
8.4%
$1.6
*Measures we use 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
on page 17 of this report.
2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005

5. Letter to Shareholders
Rising to the Challenge
Dear Fellow Shareholders: Record Revenues, Focus on Profitable Increasing Total
Lower Earnings Growth Shareholder
In 2005 Allstate experienced Returns
the worst hurricane season on
record—and the costliest in Although Allstate gen- Property-Liability Financial premiums Amid a historic year
erated record revenues continued to benefit and deposits* were in catastrophes, our
your company’s 75-year in 2005, we incurred an from our focus on $14.4 billion, and its businesses once again
unprecedented $5.7 profitable growth. operating income rewarded Allstate share-
history. We sent 4,100 billion in catastrophe- Premiums written increased by 5.4 percent holders. We repurchased
related costs as we increased by 3.2 percent to $581 million. $2.5 billion of our
catastrophe specialists to helped customers from $26.5 billion in Overall, we’re making stock and paid an
ravaged areas to do what rebuild their lives. 2004 to $27.4 billion progress in Allstate all-time high annual
That’s a big number— in 2005. Our Allstate Financial and remain dividend of $1.28 per
we do best: help customers more than five times brand standard auto focused on improving share, up 14 percent
our annual average over business produced 2.9 returns that will deliver from 2004—a testa-
recover. We also refined the last decade. Return percent unit growth, profitable growth. ment to our disciplined
on equity fell 6.6 points while Allstate home- To that end, in March capital management.
our risk management for 2005, compared to owners achieved 3.4 2006 we announced the Our stock price closed
an increase of 0.8 points percent unit growth. decision to sell the 2005 at $54.07, a 4.5
models and continued to in 2004. Operating Total Property- Allstate Financial percent increase from
execute our strategy to produce income per diluted Liability revenues, variable annuity business the $51.72 at the end of
share* declined from including investment and enter into an 2004. We also delivered
profitable growth. By focusing $4.41 in 2004 to $2.37 income, increased by exclusive distribution a total shareholder
in 2005. 3.5 percent to a record arrangement, subject return of 7 percent.
on our strengths, we fulfilled to regulatory approvals.
Though these losses $29.3 billion. And, And, we maintained our
This arrangement will
slowed our short- excluding catastrophes, solid credit ratings from
our commitments to policy allow our distribution
term momentum, that top-line growth major rating agencies.
channels to continue to
the progress we made was generated while Under the circum-
holders, invested in growth offer a full range of prod-
implementing our continuing to improve stances, we’re very
ucts, including variable
“better, bigger, broader” our underwriting proud of these results.
and rewarded our shareholders. annuities, while we
strategy improved our margins. Our Property- They show that our
dedicate our resources to
ability to create long- Liability combined strategy is working, and
better deploy capital to
term value. ratio, excluding catas- that the market remains
trophes* improved
, a more focused product confident we can deliver
Edward M. Liddy
2.1 points in 2005 portfolio where we have the attractive, steady
Chairman and
compared with 2004. scale and a significant long-term returns
Chief Executive Officer
In 2005, Allstate market presence today. shareholders expect.
*See page 17.
1

6. Letter to Shareholders
Managing an Unpredictable Market Allstate responded
to the severe
catastrophes of
2005 with speed,
efficiency and
compassion.
We also worked
to decrease our
exposures and
applied leadership
Re-examining Risk Finding New
and innovative
Opportunities
thinking to create
a better business
climate.
Shareholders expect us wide basis, before the for named storms, Though we can’t control By staying close to our new ways to connect
to ask tough questions 2005 hurricane earthquakes and fires the weather, we can customers and markets, with consumers. For
about the exposures we season, we chose to following earthquakes and will mitigate the we’re growing our example, over the last
face and manage them invest our reinsurance in all states except weather’s impact on our customer base in a five years we’ve doubled
aggressively to deliver dollars in high-density Florida. We also pur- business. As a result, highly competitive our investment in multi-
consistent earnings. In coastal areas where our chased as additional we expect our long-term market. We compete cultural advertising.
the aftermath of financial exposure is protection from hurri- exposure will decline. aggressively for high We’re also aggressively
Hurricanes Katrina, much higher—and canes in Florida $900 Moreover, we’re lifetime value insurance tapping such channels
Rita and Wilma, two where the probability million of reinsurance in calling for public policy customers in multi-line as NASCAR, Olympic
questions warranted of payback is greatest. excess of amounts recov- change and a more households. But it takes and college football
close attention. Second, what will erable from the Florida rational approach to more than price to win. sponsorships and
First, why were we do in the future to Hurricane Catastrophe how Americans prepare To attract and retain placing greater emphasis
Allstate’s losses so mitigate this risk so we Fund. In some other for and protect them- profitable customers, on cable TV, the
significant in Louisiana can continue to generate states, we’re purchasing selves against the we also continue to Internet and customer-
and Mississippi? reliable earnings growth more reinsurance to devastating and highly develop our product experience activities.
Katrina’s wide path and increase our returns reduce our exposures. unpredictable effects of mix to meet their needs
and unusual severity on capital? Each major In other markets, catastrophes. and back these products
meant high payouts we’re increasing rates In 2006 these efforts
storm teaches us new with fast response,
on the hundreds of and deductibles on our will expand and acceler-
lessons—and makes us financial strength and
thousands of homes homeowners policies ate. By re-examining
better able to manage integrity. In addition,
we insure there. and limiting new our catastrophe risk
risks. We factor new we anticipate and
Reinsurance could business writing. on an ongoing basis,
data into our risk respond to demo-
have softened the blow, In markets where we we can protect our
management strategy, graphic, regulatory and
as it did in Texas, for cannot adequately cover business and generate
including recent find- market trends to find
Hurricane Rita. When our risks, we may be more consistent share-
ings that point to a
we considered our expo- able to help customers holder returns.
period of more frequent
sures on an enterprise- and severe hurricanes. find alternative coverage
We purchased country- while we focus instead
wide reinsurance that on auto and financial
will reimburse Allstate services products.
for $2 billion of losses
in excess of $2 billion
2

7. The Future: Building on our Strengths
Innovation at Work Value Driven Investing in People
Innovation anchors suc- Specifically, we started Value means different basis so we can refine Allstate maintains its Each year we invest
cess for any company to apply even more things to different processes and commu- reputation for a high- heavily in helping our
that wants to survive sophisticated tiered people. For Allstate, nications based on performance culture by employees achieve new
and thrive over the pricing not only to auto, it means doing feedback from agents attracting and retaining professional designations
long-term. Allstate is no but across our home- everything we can to and customers. the best talent in our and academic degrees.
exception. Our success owners portfolio to more optimize financial Strategies like this save industry. We provide And because diversity
reflects our commit- finely segment risks and returns for shareholders. money and support our force of nearly is a cornerstone of
ment to product and help attract customers The 2005 hurricane top-line growth. 70,000 employees, Allstate’s success,
process innovation and with higher lifetime season reinforced the Our strong balance agents and agency staff we also invest in and
efficient business prac- value. And, our Next importance of manag- sheet gives us the with many opportuni- value our diverse work-
tices, and we have many Generation Claim ing our business with flexibility to invest ties to expand their force, who serve our
industry firsts to our Systems will combine even greater precision responsibly in growth. knowledge, acquire new diverse customer base
credit. new technologies with and sophistication. With one of the skills and position and stockholders in
In recent years we’ve fast, simple, customer- Our performance also country’s most recog- themselves for new a highly competitive
taken our investment in focused processes. This makes us even more nizable brands as a career and business marketplace. In return,
innovation to a new investment will help us committed to build on foundation, we are opportunities. For our people demonstrate
level. For example, we lower our loss adjust- the key strengths that building profitable example, we launched exceptional commit-
developed Allstate® ment expenses, better drive shareholder relationships based on a new field leadership ment to our customers
Your Choice Auto insur- manage loss costs and returns by enhancing competitively priced structure designed to and work hard to
ance to give customers boost customer reten- our business perform- products and services, provide agency owners help Allstate win in
greater flexibility and tion and satisfaction. ance and corporate innovation and a better with specialized support the marketplace.
choice of packages. Even as we look reputation. customer experience. to help them operate
These package features ahead, we keep a keen Our scale provides As a company, we more efficiently and
are helping us win eye on the market built-in economies value strong communi- profitably.
profitable market share, variables that affect that generate value ties and show this
especially as we combine our performance and for agents, customers commitment through
them with increasingly adjust our strategy and shareholders. ongoing investment
sophisticated under- accordingly. For exam- For example, it enables in municipal bonds,
writing tools to deliver ple, we use technology us to roll out new employee volunteerism
competitive pricing. and local knowledge to products on a regional and continued support
Innovation is also guide expansion of our of The Allstate
making our product agency base into high- Foundation.
support structure more growth areas.
efficient and profitable.
3

8. Letter to Shareholders
75 Years and Growing
Total Shareholder Returns Dividends per Share 75 Years and Strong
(in dollars, adjusted for stock split in 1998)
Since IPO on 6/3/1993
Allstate is proud to and agents are deliver- we outline the many
celebrate 75 years of ing our Good Hands® steps we took to keep
373%
providing protection Promise with commit- our enterprise growing,
1.40
350
and security for genera- ment and zeal. meet our customer
tions of Americans. We I am grateful for the commitments and
1.28
are excited to embark support of an experi- deliver value and
300 1.20
306%
on our next 75 years, enced leadership team results.
1.12
and we do so from a that is guiding Allstate In 2006 we will focus
250 1.00
strong foundation. The toward a dynamic on several business pri-
243%
239%
company is growing future. Several leaders orities that are critical
.92
profitably despite record of your company, to our future. The
.84
200 .80
catastrophe losses. Our including our long-time progress we make to
.76
financial position is senior management reduce our catastrophe
.68
solid. We’re improving team member Robert exposure, accelerate
150 .60
.60
our competitive position W. Pike, retired in profitable growth, pro-
.54
by taking many 2005 after decades of tect our brand, manage
.48
100 .40 .43 initiatives to reduce outstanding service. expenses and improve
.39
.36 costs. Consumers are I thank them for their the customer experience
responding to the many contributions to will make us an even
S&P Insurance
50 .20
consistent brand Allstate’s success. They stronger and better
S&P 500
.18
S&P P/C
Allstate
experience we deliver, have left their very company.
93*
94
95
96
97
98
99
00
01
02
03
04
05
our competitive but capable successors with
*IPO as of 6/3/1993 disciplined pricing and high standards to meet.
Total Shareholder Returns our innovative new In 2005 Allstate
products. Employees drew on its many Edward M. Liddy
S&P
strengths to overcome Chairman and
Allstate S&P P/C Insurance S&P 500
adversity and generate Chief Executive Officer
7% 15% 14% 5%
1 Year, 12/31/2004 –12/31/2005
solid shareholder
31% 27% 22% 16%
2 Years, 12/31/2003–12/31/2005
returns. I’ve addressed
56% 60% 48% 49%
3 Years, 12/31/2002–12/31/2005
our strategy for manag-
75% 43% 17% 16%
4 Years, 12/31/2001–12/31/2005
ing catastrophic events.
5 Years, 12/31/2000–12/31/2005 39% 31% 3% 3%
In the pages that follow,
10 Years, 12/31/1995–12/31/2005 218% 150% 193% 136%
373% 239% 306% 243%
Since IPO, 6/3/1993–12/31/2005
4

9. Preparing and Protecting America
How do we mitigate mega-catastrophe risk? Protecting America
Allstate advocates
preparation, not rear-
view reaction.
It’s not a matter of insurance; Why should Why is Allstate What is Allstate’s How will this What can
Americans be advocating a new solution? solution benefit consumers do
it’s a matter of economic vitality. concerned? system? Allstate share- to protect
The fact is that America is holders? themselves?
not as prepared as it should be, We initiated Protecting Allstate is reducing Consumers can take
For most families, Simply put, the current
America.org, a broad its catastrophe expo- advantage of new educa-
the home represents a system does not ade-
and mega-catastrophes appear coalition that seeks to sure to protect its tion programs that will
primary and growing quately help Americans
to be increasing in better prepare and financial strength and help them prepare for
source of equity and effectively prepare for
protect Americans generate consistent catastrophes before they
the foundation of and efficiently recover
frequency and from natural disasters. earnings. In the strike. They can learn
their long-term from catastrophes.
The goal is to improve short-term, this how to:
financial security. Insurance premiums
severity. consumer education, strategy will require • Ensure their insurance
Yet today, one third rise as carriers try to
mitigation and the us to provide less coverage includes
of Americans live in cover the costs of
first response capability protection to fewer replacement costs
areas prone to earth- mega-catastrophes and
of police and fire homeowners. With • Follow their commu-
quake risk, and more reinsurance coverage.
departments. We are a new risk-sharing nity’s public escape
than half live in Some homeowners find
also advocating a new mechanism in place, plan in an emergency
coastal counties. it difficult to secure
risk-sharing mechanism we can protect more • Develop a simple
This is a precarious insurance coverage at
whereby private insurers consumers at afford- family communication
place to be at a time any price. As a result,
would continue to able prices and enable and response plan
when seven major too many consumers
provide protection to them to benefit • Access available
hurricanes struck the and businesses lack the
consumers but there from our world-class resources to speed the
Gulf and Atlantic comprehensive cover-
would be a limit to service and claims recovery process
coasts in a 15-month age they need. And
their potential losses. expertise. Bringing You can learn more by
span in 2004-05, when disaster strikes,
Losses above this the Good Hands® visiting Protecting
and resulted in they have nowhere to
amount would be Promise to life will America.org. Equally
insured losses that turn for immediate
covered by a privately enable us to grow important, I encourage
ranked among the support. Taxpayers
funded government- profitably and you, your family and
top 10 catastrophes also suffer when the
sponsored catastrophe maintain our record friends to contact your
in Allstate’s history. government spends
pool at the state and of outstanding legislators and ask them
billions in emergency
federal levels. This shareholder returns. to join the effort to help
funds on people and
structure would pro- protect you and our
businesses that may
vide more protection country from the devas-
never fully recover. We
at a lower cost to tating consequences of
need a new approach
consumers. natural catastrophes.
that gives consumers
Thomas J. Wilson
the protection and
President and
support they need.
Chief Operating Officer
5

10. Product Innovation
Allstate® Your Choice
Auto insurance is re-
inventing auto insurance
by rewarding safe driving
and offering more choice
to meet individual needs.
Features include a safe-
driving bonus, accident
forgiveness, a safe-driving
deductible and new-car
expanded protection.
Allstate customers John
and Kitty Vautier, shown
here with their teenage
drivers Jennifer and
John Jr., protect all
their family cars with
Allstate® Your Choice
Auto insurance.
6

11. How does Allstate keep its business growing?
We compete vigorously A High Quality Expanded Innovation Drives A Rewarding Future
Portfolio Distribution Opportunity
on multiple fronts.
Our sophisticated tiered We never rest when it Growth also requires a Demographic trends consumers prepare for
pricing models are comes to building on clear view of the market are making personal the future. In 2005,
creating a more stable our already powerful opportunities ahead— investment more new sales of financial
and profitable portfolio. distribution engine. In and a focused strategy important than ever— products by Allstate
exclusive agencies*
Our rating plans have 2005 we had a net gain for capturing them. and providing growth
multiple tiers that allow of 555 new exclusive For example, new opportunities for increased 5.7 percent
us to more precisely agencies, bringing technology is making Allstate Financial. to $2.4 billion and have
align premium with our U.S. total to cars much safer, while Life expectancy is grown at a compound
risk. We compete 12,428. We’re also demographic shifts increasing. Health- annual rate of 42.1
vigorously for high life- helping our existing and tougher laws are care costs are rising. percent since 2000.
time value customers. agencies grow bigger, creating a larger pool of Pensions and Social
The result: improved more efficient and more safe, responsible drivers. Security benefits are
underwriting profits, profitable. For example, These trends present a under pressure. Tens
better retention and our U.S. licensed sales favorable climate for of millions of baby
stable margins. professionals increased innovative new products boomers are at or
The Good Hands® Promise to approximately like Allstate® Your near retirement age.
As part of our overall growth
29,800 in 2005 from Choice Auto insurance, Allstate has the
strategy, we focus on delivering
28,500 in 2004. As a which gives consumers financial expertise,
on the five planks of the Good
result, we’re reaching the flexibility to match innovative products and
Hands® Promise to help cus-
more new households the price they pay to the distribution network
tomers feel better protected
while cross-selling our coverage they need. to meet the growing
today and better prepared for
broad product portfolio demand for financial
tomorrow.
to the 17 million house- services that help
holds we already serve.
Opportunities for Establish relationships
Differentiation that value customers
Provide a knowledgeable
and experienced team
Offer products and services
to help meet customer needs
Foundational Be easy to do business with
Elements
Have competitive prices
*See page 17.
7

12. How does Allstate meet its customer commitments?
We’re creating loyal customers— Allstate is attract-
ing and retaining
one experience at a time. customers by
responding fast,
improving the
claim experience
and building a
larger and better
equipped agent
Connecting with First to Respond Staking a Claim Tools to Excel network.
Customers to Excellence
Allstate’s Good Hands® Customers appreciate Allstate handles more Our vast and growing
Promise makes a strong Allstate’s scale and than six million claims network of exclusive
commitment to resources most when in a typical year—not agencies gives us
nurture and protect disasters strike. Before including catastrophes. immediate access to
our customers. We’re Katrina reached land, This means millions of consumers and commu-
extending this promise we mobilized 1,500 opportunities each year nities across the country.
by making our agency, claim adjusters just to execute efficiently As these agencies grow
online and customer outside the impact and help customers bigger, more efficient
service channels easier zone. We also posi- recover after a loss. and more profitable,
to access and more sat- tioned 24 Mobile We have been looking they’re better equipped
isfying to experience. Response Units, all at every phase of the to meet the protection
We’re also sharpening equipped with satellite claim process—from and financial services
communications to capability that allowed customer record- needs of our target
better align our target- us to relay claim keeping to check market. Today, Allstate
ed audiences with information from distribution. And we agents benefit from an
media channels—and field adjusters to head- have been making efficient new technology
to ensure we consis- quarters systems before dozens of changes to platform that makes
tently reinforce brand local phone service was improve the entire doing business easier.
value. In 2005 greater restored. Allstate experience. They can also access the
customer focus helped agents and employees market intelligence,
increase customer also showed their marketing support and
loyalty for the second dedication by attending training they need to
year in a row. to customers first— break away from the
even though more than retail competition.
800 had lost their own We are also making
homes and businesses technology and process
or were otherwise investments to grow our
severely affected by independent channel,
the storm. which serves a market
representing one third of
all insurance customers
and $45 billion in
annual premium dollars.
8

13. Real Time Response
Members of Allstate's
dedicated National
Catastrophe Team
monitor storms before
they strike, develop
response strategies
and coordinate on-
the-ground activity.
Team members (left to
right) include Steve
Pressley, Claim Process
Specialist; Jerry
Jimenez and Wendy
Carrick, Market Claim
Managers; and Les
Mertins, Claim Field
Director.
9

14. How does Allstate deliver value and results?
We invest responsibly and Shareholders
count on
act with integrity. Allstate to act
with integrity
and initiative—
the same
attributes that
help guide our
business—
when helping
Disciplined Risk Management, Integrity in Strong Communities,
the people and
Reliable Returns Action Empowered Customers
communities
that we serve.
In twelve-and-a-half Allstate has a sophis- both the Standard & Allstate’s reputation for Allstate is supporting the Annual Giving
years as a public ticated formula for Poor’s Property & good governance and new generations of Campaign.
company, Allstate has managing risks. By Casualty and Standard financial transparency customers by helping Each year, Allstate
created significant viewing them strategi- & Poor’s 500 indices. creates additional value communities across funds The Allstate
value by executing a cally, we can determine Allstate also has a by contributing to our America grow and Foundation, an inde-
disciplined investment which risks to assume proven track record of long-term financial per- prosper. These activities pendent charitable
strategy and managing and then the right returning free cash flow formance. We adopted express our core values corporation. In 2005
our risks with an amount to assume in to shareholders through many of our current and boost Allstate’s The Allstate Foundation
enterprise-wide view. order to achieve dividends and stock corporate governance reputation as a responsi- awarded $16 million in
We generate addi- attractive, reasonably repurchases. Our practices long before ble corporate citizen. grants to 508 national
tional returns through predictable returns. dividend has increased corporate scandal led At the end of 2005, and regional not-for-
prudent management of That means under- every year since 1993 to regulatory change. our investment portfolio profit organizations.
our $118.3 billion standing how natural and it reached an all- These include rigorous included $27 billion These grants strengthen
investment portfolio. disasters, changing time high of $1.28 per CEO evaluations in municipal bonds in communities in three
We invest share- economic conditions, share in 2005. Since and detailed board urban areas that need important ways: they
holders’ equity in areas operational challenges 1993 we have also evaluations. investment capital. promote community
that drive profitable and market forces affect repurchased more than Our practices and Allstate also supports safety; create greater
growth and generate our business. This $11 billion in Allstate our written policies— communities in need by economic empowerment;
solid returns. These analysis helps us find stock. which are described funding programs that and encourage tolerance,
include product the right balance online at allstate.com— encourage employees, inclusion and diversity.
innovation, marketing, between maintaining earn high marks from agents and agency staff In 2005 The Allstate
distribution and process liquidity and investing independent governance to reach out to others. Foundation launched
improvement. In 2005 capital to fuel growth organizations and are In 2005, the $6 million new initiatives to
shareholders’ equity was and reward investors. widely embraced donated by Allstate to educate teens on the
$20.2 billion compared Between 1994 and throughout our organi- help hurricane victims importance of safe
to $21.8 billion in the end of 2005, the zation. Our senior in the Gulf states driving, and to help
2004, reflecting a net total shareholder return management team leads included $2.6 million victims of domestic
return of capital to on our stock has aver- by example, anchoring in contributions from violence transition to
shareholders through aged 17 percent on a our culture by maintain- Allstate employees and safe, productive lives
dividends and share compound annual basis. ing the highest personal agencies. Our people free of violence.
repurchasing. These returns exceed standards for integrity also gave an additional
and accountability. $2.8 million in 2005
to local charitable
organizations through
10

15. Providing a Helping Hand
Families in the New Orleans
area are getting help
rebuilding their lives in the
wake of Hurricane Katrina.
Shikanah Brown (fore-
ground) is one of dozens of
pre-schoolers at the East St.
Tammany Rainbow Child
Care Center in Slidell,
Louisiana, helped by The
Allstate Foundation
Hurricane Recovery Fund
at the Greater New Orleans
Foundation. The daycare
center received $20,000 to
rebuild its battered site.
“It’s been a Godsend,” says
Rainbow executive director
Charlotte Champagne,
shown talking with
Shikanah’s mother
Celeste and (to her right)
Maya Rollins with son
Jasper Williams.
11

16. Financial Scorecard
Better Bigger Broader
For Allstate, trans- Net Income per Operating Income per Return on Equity Revenue Operating Income Premiums and Deposits
parency means giving Return on equity measures This measure indicates This measure reveals This measure is used to
Diluted Share Diluted Share
This “bottom line” This is a common measure how well Allstate used Allstate’s total premium and trends in our insurance analyze the production
investors clear and easy
measure demonstrates used by the investment shareholders’ equity to investment results. In 2005, and financial services trends for Allstate Financial
access to all the infor-
net income during the year community to analyze our generate net income. Allstate generated record business that may be sales. It shows the progress
mation they need to that is attributable to each results. Operating income revenue. obscured by business on meeting the goal of
assess our performance. share of stock. This num- reveals trends in our insur- decisions and economic becoming a broader-based
This financial scorecard ber declined in 2005 as ance and financial services developments unrelated company.
severe catastrophe losses business that may be obscured to the insurance under-
demonstrates our
reduced net income. by business decisions and writing process.
progress in executing
economic developments
our “better, bigger, unrelated to the insurance
broader” strategy. underwriting process.
Better (in dollars) (in dollars) (percent) (in billions) (in billions) (in billions)
We’re striving to become
more efficient and profitable 35.4
in our operations and 3.1
4.54
33.9
in our relationships with $4.50 $4.50 15.0 $18.0
$33.0 $3.0
4.41
15.0
customers. 32.1
14.2
15.9
Bigger 29.6 2.7 14.4
28.9
Our goal is to drive top line 3.83 13.2
2.5
3.75 3.75 12.5 15.0
27.5
3.77
growth in a way that also
11.6
delivers bottom line profits.
13.1
10.8
Broader 11.8
2.1
2.0
3.00 3.00 10.0 12.0
22.0
We seek to expand in 10.6
9.8
the personal lines, life 2.92
2.64
insurance, retirement 9.3
8.4
and investment products
1.6
2.37
marketplace. 1.5
2.25 2.25 7.5 9.0
16.5
1.5
2.06
6.7 6.5
1.60 1.60
1.0
1.50 1.50 5.0 6.0
11.0
0.5
.75 .75 2.5 3.0
5.5
2.7 2.8
2.3
2.0
1.3
’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05
Non-proprietary channels
Proprietary channel
12

17. Leadership Team
George E. Ruebenson
Catherine S. Brune Casey J. Sylla Thomas J. Wilson Eric A. Simonson Joan H.Walker
From left to right:
Senior Vice President and
Joseph V.Tripodi Senior Vice President,
President, Allstate Financial President and Senior Vice President and Senior Vice President,
Property-Casualty Claim
Senior Vice President and Chief Information Officer Drives increasing returns Chief Operating Officer Chief Investment Officer Corporate Relations
Service Organization
Chief Marketing Officer Sets and implements and profitable growth by Leads the implementation of Manages Allstate’s invest- Stewards Allstate’s corporate
Oversees a highly efficient
Leverages Allstate’s market- an integrated, business- providing top-tier financial Allstate strategies that drive ment portfolios to generate image and reputation
claim service organization
ing power and highly valued aligned technology strategy products through Allstate profitable growth, customer attractive levels of risk- and sets and directs the
that is continuously evolv-
Good Hands® Promise to that supports business agencies and third-party loyalty and innovation. adjusted income and total company’s external and
ing to better meet the needs
strengthen and broaden objectives, protects and financial services return in support of overall internal communication
Michael J. Roche
of customers and agents.
customer relationships and delivers information and professionals. financial objectives. strategy.
attract new customers. enhances customer service. Senior Vice President,
Michael J. McCabe
Edward M. Liddy Ronald D. McNeil
Allstate Protection Technology
Dan Hale Joan M. Crockett Senior Vice President and
Chairman and and Administration Senior Vice President,
General Counsel
Senior Vice President and Senior Vice President, Chief Executive Officer Leads all aspects of Protection Distribution
Guides Allstate’s strategy to
Chief Financial Officer Human Resources Sets and directs the corporate Protection technology Optimizes performance
ensure sound compliance
Develops financial strategy Develops and implements strategy that is transforming management and Allstate’s of Allstate’s distinct and
and governance practices
and ensures sound gover- workforce strategies to Allstate into a high-perform- agency and customer powerful distribution net-
and to foster a healthy legal,
nance practices, rigorous attract, retain and motivate ance insurance and financial support functions. works to deliver products
economic, legislative and
financial and risk manage- the best talent to drive services company. and services that meet
regulatory environment.
ment controls, appropriate business strategy. customers’ needs.
reporting transparency and
disciplined capital
management.
13