Allstate Announces October Catastrophe Loss Estimate

             Allstate Announces October Catastrophe Loss Estimate

PR Newswire

NORTHBROOK, Ill., Nov. 28, 2012

NORTHBROOK, Ill., Nov. 28, 2012 /PRNewswire/ --The Allstate Corporation
(NYSE: ALL) today announced estimated catastrophe losses for the month of
October 2012 of $1.08 billion, pre-tax and net of reinsurance. Sandy was the
largest of five October catastrophe events.

Pre-tax estimates of Sandy catastrophe losses are shown in the following

($ in millions)               Allstate   Encompass   Esurance
                              brand      brand       brand      Total

Total, gross of reinsurance $ 1,160    $ 110       $ 5        $ 1,275
Reinsurance recoverable       185        15          --         200
Total, net of reinsurance   $ 975      $ 95        $ 5        $ 1,075

The total gross loss estimate by state is 66% in New York, 20% in New Jersey
and 14% in other states. Approximately $340 million of claim payments have
been made as of November 26, 2012. Autos represent approximately 40% of the
total gross losses, with 78% in New York, 19% in New Jersey and 3% in other

Loss estimates are generally based on claim adjuster inspections and the
application of historical loss development factors to the extent we have been
able to complete inspections in areas impacted by Sandy. Our loss estimates
for Sandy are calculated in accordance with the coverage provided by our
policies. Our homeowners policies specifically exclude coverage for losses
caused by flood, but generally provide for coverage for physical damage caused
by wind or wind-driven rain. Therefore, our homeowners estimates do not
include estimates for losses caused by flood. Auto policyholders generally
have coverage for physical damage due to flood if they have purchased optional
auto comprehensive coverage.

Our catastrophe reinsurance program comprises several agreements. For a first
event, our nationwide reinsurance agreement (which excludes New Jersey and
Florida) effectively covers 95% of personal lines property and auto
catastrophe losses up to $4.225 billion with Allstate retaining the first $750
million in qualifying losses. Our New Jersey agreement comprises three
contracts with two contracts effectively covering 63% of personal lines
property catastrophe losses up to $550 million with Allstate New Jersey
retaining the first $150 million in qualifying losses, and the third contract
effectively covering 32% of losses up to $465 million and 42% of losses
between $465 million and $665 million with Allstate New Jersey retaining the
first $165 million in qualifying losses. New Jersey auto losses are not
covered by any of our reinsurance agreements. Our Pennsylvania agreement
covers 95% of personal lines property catastrophe losses in excess of $100
million up to $200 million. We expect losses from Sandy will be contained
within the first layer of the nationwide reinsurance agreement. We currently
expect minimal recovery under the New Jersey reinsurance agreement and do not
expect any recovery under the Pennsylvania reinsurance agreement. For
detailed specifics of our catastrophe reinsurance program, please see our 2011
Form 10-K or the Reinsurance Update on the Quarterly Investor Info page of

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer, serving approximately 16 million households through
its Allstate, Encompass, Esurance and Answer Financial brand names and
Allstate Financial business segment. Allstate branded insurance products
(auto, home, life and retirement) and services are offered through Allstate
agencies, independent agencies, and Allstate exclusive financial
representatives, as well as via and 1-800 Allstate^®, and are
widely known through the slogan "You're In Good Hands With Allstate^®.

Forward-Looking Statements and Risk Factors

This news release contains forward-looking statements about catastrophe
losses. These statements are based on our estimates and assumptions that are
subject to uncertainty. These statements are made subject to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Management believes the estimated impact of catastrophe losses, including net
loss reserves, are appropriately established and recorded based on available
facts, information, laws and regulations. However, actual results may differ
materially from those projected in the forward-looking statements in this news
release and from the amounts currently recorded for a variety of reasons,
including the following:

  oOur policyholders' ability to report and our ability to adjust claims have
    been impeded by the extent of the devastation and the number of areas
  oIt is particularly difficult to assess the extent of damage in the initial
    stages of adjusting residential property losses.
  oOur estimate for the ultimate costs of repairs may prove to be incorrect
    because of increased demand for services and supplies in the areas
    affected by the catastrophes.
  oThe number of incurred but not reported (IBNR) claims may be greater or
    less than currently anticipated.

We assume no obligation to update any forward-looking statements as a result
of new information or future events or developments.

SOURCE The Allstate Corporation

Contact: Maryellen Thielen, Media Relations, +1-847-402-5600, Robert Block,
Investor Relations, +1-847-402-2800
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