Allstate (ALL)

Insured Investments  As of September 30, 2008, we hold $12.89 billion of fixed income securities that are insured by bond insurers, including approximately $12.01 billion or 51.7% of our municipal bond portfolio, $515 million of our ABS RMBS and $299 million of our other asset-backed securities.  Additionally, we hold $7 million of corporate bonds and credit default swaps that were directly issued by these bond insurers.  51.7% of our municipal bond portfolio is insured by nine bond insurers and 56.6% have a Moody’s equivalent rating of Aaa or Aa.  Our practices for acquiring and monitoring municipal bonds primarily are based on the quality of the primary obligor.  As of September 30, 2008, we believe the valuations already reflected a decline in the value of the insurance, and further such declines if any, are not expected to be material.  While the valuation of these holdings may be temporarily impacted by negative and rapidly changing market developments, we continue to have the intent and ability to hold the bonds and expect to receive all of the contractual cash flows.  As of September 30, 2008, 32.2% of our insured municipal bond portfolio was insured by MBIA, 25.2% by AMBAC, 20.0% by FSA and 18.2% by FGIC.