Allstate (ALL)

Limited partnership impairment

       As of December 31, 2009 and 2008, the carrying value of equity method limited partnership interests totaled $1.64 billion and $1.56 billion, respectively. The Company recognizes a loss in value for equity method investments when evidence demonstrates that it is other-than-temporarily impaired. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings potential that would justify the carrying amount of the investment. In 2009, 2008 and 2007, the Company had write-downs of $11 million, $29 million and $18 million, respectively, related to equity method limited partnership interests.

       As of December 31, 2009 and 2008, the carrying value for cost method limited partnership interests was $1.10 billion and $1.23 billion, respectively, which primarily included limited partnership interests in fund investments. The fair value for cost method investments is estimated to be equivalent to the reported net asset value of the underlying funds. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the investment. Impairment indicators may include: actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; significantly reduced valuations of the investments held by limited partnerships; or any other adverse events since the last financial statements received that might affect the fair value of the investee's capital. Additionally, the Company uses a screening process to identify those investments whose net asset value is below established thresholds for certain periods of time, and investments that are performing below expectations, for further consideration. In 2009, 2008 and 2007, the Company had write-downs of $297 million, $83 million and $6 million, respectively, related to cost method investments that were other-than-temporarily impaired.

Limited partnership impairment

        As of December 31, 2008 and 2007, equity-method limited partnership interests totaled $1.56 billion and $1.32 billion, respectively. The Company recognizes a loss in value for equity-method investments when evidence demonstrates that it is other-than-temporarily impaired. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. In 2008 and 2007, the Company had write-downs of $29 million and $18 million, respectively, related to equity-method limited partnership interests. No write-downs were recognized in 2006.

        As of December 31, 2008 and 2007, the carrying value for cost-method limited partnership interests was $1.23 billion and $1.19 billion, respectively, which primarily included limited partnership interests in fund investments. The fair value for cost-method investments is estimated to be equivalent to the reported net asset value of the underlying funds. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the investment. Impairment indicators may include: actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; or any other recent adverse events since the last financial statements received that might affect the fair value of the investee's capital. Additionally, the Company uses a screening process to identify those investments whose net asset value is below established thresholds for certain periods of time, and investments that are performing below expectations for consideration for inclusion on its watch-list. In 2008, 2007 and 2006, the Company had write-downs of $83 million, $6 million and $17 million, respectively, related to cost method investments that were other-than-temporarily impaired.

Limited partnership impairment

        As of December 31, 2008 and 2007, equity-method limited partnership interests totaled $1.56 billion and
$1.32 billion, respectively. The Company recognizes a loss in value for equity-method investments when evidence demonstrates that it is other-than-temporarily impaired.
Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings
capacity that would justify the carrying amount of the investment. In 2008 and 2007, the Company had write-downs of $29 million and $18 million, respectively, related to equity-method
limited partnership interests. No write-downs were recognized in 2006.

        As
of December 31, 2008 and 2007, the carrying value for cost-method limited partnership interests was $1.23 billion and $1.19 billion, respectively,
which primarily included limited partnership interests in fund investments. The fair value for cost-method investments is estimated to be equivalent to the reported net asset value of the
underlying funds. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse
effect on the carrying value of the investment. Impairment indicators may include: actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on
financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; or any other recent adverse events since the last financial
statements received that might affect the fair value of the investee's capital. Additionally, the Company uses a screening process to identify those investments whose net asset value is below
established thresholds for certain periods of time, and investments that are performing below expectations for consideration for inclusion on its watch-list. In 2008, 2007 and 2006, the
Company had write-downs of $83 million, $6 million and $17 million, respectively, related to cost method investments that were other-than-temporarily
impaired.

Limited Partnership Impairment

        As of December 31, 2007 and 2006, equity-method limited partnership investments totaled $1.32 billion and $672 million, respectively. The Company recognizes a loss in value for equity-method investments when evidence demonstrates that it is other-than-temporarily impaired. Evidence of a loss in value that is other-than-temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. In 2007, the Company had write-downs of $18 million related to equity-method limited partnership interests. No write-downs were recognized in 2006.

        As of December 31, 2007 and 2006, the carrying value for cost-method limited partnership investments was $1.19 billion and $953 million, respectively, which primarily included limited partnership interests in fund investments. The fair value for cost-method investments is not readily determinable because the investments are private in nature and do not trade frequently. Therefore, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the investment. Impairment indicators may include: actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; or any other recent adverse events since the last financial statement received that

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might affect the fair value of the investee's capital. Additionally, the Company uses a screening process to identify those investments whose net asset value is below established thresholds for certain periods of time, and investments that are performing below expectations for consideration for inclusion on its watch-list. In 2007 and 2006, the Company had write-downs of $6 million and $17 million, respectively, related to cost method investments that were other-than-temporarily impaired.

Limited Partnership Impairment

        As of December 31, 2007 and 2006, equity-method limited partnership investments totaled $1.32 billion and $672 million, respectively. The
Company recognizes a loss in value for equity-method investments when evidence demonstrates that it is other-than-temporarily impaired. Evidence of a loss in value that is
other-than-temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity that would
justify the carrying amount of the investment. In 2007, the Company had write-downs of $18 million related to equity-method limited partnership interests. No write-downs were recognized in
2006.

        As
of December 31, 2007 and 2006, the carrying value for cost-method limited partnership investments was $1.19 billion and $953 million, respectively,
which primarily included limited partnership interests in fund investments. The fair value for cost-method investments is not readily determinable because the investments are private in
nature and do not trade frequently. Therefore, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the
investment. Impairment indicators may include: actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value;
completed sale of a material underlying investment at a price significantly lower than expected; or any other recent adverse events since the last financial statement received that

167

might
affect the fair value of the investee's capital. Additionally, the Company uses a screening process to identify those investments whose net asset value is below established thresholds for
certain periods of time, and investments that are performing below expectations for consideration for inclusion on its watch-list. In 2007 and 2006, the Company had write-downs of
$6 million and $17 million, respectively, related to cost method investments that were other-than-temporarily impaired.