ALL » Topics » LONG-TERM CASH INCENTIVE AWARDS, 2007-2009 CYCLE PERFORMANCE MEASURES, WEIGHTING, AND TARGET GOALS (1)

This excerpt taken from the ALL DEF 14A filed Apr 2, 2008.

LONG-TERM CASH INCENTIVE AWARDS, 2007-2009 CYCLE
PERFORMANCE MEASURES, WEIGHTING, AND TARGET GOALS(1)

Performance Measures

  Percentage weight of the
total potential
award(2)

  Target
Average adjusted return on equity relative to peers   50%   5th position relative to peers
Allstate Protection growth in policies in force over the 3-year cycle   25%   5%
Allstate Financial return on total capital   25%   9.5%

(1)
Information regarding our performance measures is disclosed in the limited context of our annual and long-term cash incentive awards and should not be understood to be statements of management's expectations or estimates of results or other guidance. We specifically caution investors not to apply these statements to other contexts.

(2)
Same weight applied for all named executives.

        For the return on equity measure, Allstate's performance will be ranked relative to the peer insurance companies listed on page 28 as indicated in the following table. However, for the 2007-2009 cycle, Cincinnati Financial Corporation was excluded because it pursues a buy-and-hold equity investment strategy different than the other peers that has resulted in a significant build up of unrealized capital gains in its equity portfolio, which impacts its adjusted return on equity making it less comparable to Allstate's performance.

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