Allstate (ALL)

Strong Capital Position

“Allstate’s capital position remained strong in the first quarter,” said Don Civgin, vice president and chief financial officer.   “At the end of the first quarter, we held $12.2 billion in GAAP equity with $3.3 billion in assets available at the holding company level. Statutory surplus at March 31, 2009 was estimated to be $13.0 billion at Allstate Insurance Company and $3.4 billion at Allstate Life Insurance Company.”

Allstate continues to be focused on maintaining capital and liquidity strength through these difficult financial markets.  In addition to the $3.35 billion of deployable invested assets at Kennett Capital Holdings, LLC and The Allstate Corporation, it continues to have access to $1.00 billion of funds from either commercial paper issuance or an unsecured credit facility, neither of which was drawn at March 31, 2009.  This provides ample capital for the company’s modest expected fixed charges of $650 million annually and $750 million of debt maturing in December 2009. The debt maturing in December 2009 is anticipated to be refinanced. As of March 31, 2009, the company held $23.05 billion, a quarter of the total portfolio, in cash and highly liquid assets convertible to cash within 90 days without significant additional realized capital loss.  This is an increase in highly liquid assets of $2.49 billion since December 31, 2008.

“This substantial liquidity position mitigates the risk of having to liquidate assets that are currently in an unrealized loss position,” said Civgin.  “This liquidity reserve has served Allstate well, but carries with it the burden of lower investment returns.  As we navigate our way through the financial market turmoil, Allstate will continue to balance the risks and returns inherent in our liquidity position.”

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At Allstate.com click on “Investors”, or go directly to http://ir.allstate.com/, to access additional information about Allstate’s results under “Quarterly Investor Info” and access a webcast of the conference call to discuss first quarter 2009 results.  The conference call will be held on Friday, May 8, 2009, at 9 a.m. ET.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate is reinventing protection and retirement to help individuals in approximately 17 million households protect what they have today and better prepare for tomorrow. Customers can access Allstate products and services such as auto insurance and homeowners insurance through more than 14,700 exclusive Allstate agencies and financial representatives in the U.S. and Canada, or in select states at allstate.com and 1-800 Allstate®. Encompass® Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Customers also can access information about Allstate Financial Group products and services at myallstatefinancial.com.

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