5-Year Summary of Selected
Financial Data

Condensed Consolidated
Income Statements

Condensed Consolidated
Balance Sheets

Condensed Consolidated
Statements of Cash Flow

Consolidated Financial
Highlights

Property-Liability Highlights

Life and Savings Highlights

Life and Savings statutory premiums and deposits were $8.5 billion versus $5.9 billion in 1998. The improvement in statutory premiums, which include all premiums and deposits on life and annuity products, was driven by higher sales of variable and fixed annuity products. Variable annuity sales increased 60 percent, primarily the result of the Allstate-Putnam alliance, which produced $830 million in variable annuity sales in its first year. Fixed annuity sales increased 53 percent due to higher sales through banks and independent agents. Life and Savings GAAP revenues, which consist of net investment income, GAAP premiums and contract charges, and realized capital gains, were $4.1 billion, up 3 percent from 1998.

Life and Savings operating income decreased slightly in 1999 versus 1998 as growth in product sales was more than offset by increased mortality, higher operating expenses and the effects of acquisition and restructuring charges. Operating income continues to be affected by a market shift to lower profit margin products.

Life and Savings statutory premiums and deposits were $8.5 billion versus $5.9 billion in 1998. The improvement in statutory premiums, which include all premiums and deposits on life and annuity products, was driven by higher sales of variable and fixed annuity products. Variable annuity sales increased 60 percent, primarily the result of the Allstate-Putnam alliance, which produced $830 million in variable annuity sales in its first year. Fixed annuity sales increased 53 percent due to higher sales through banks and independent agents. Life and Savings GAAP revenues, which consist of net investment income, GAAP premiums and contract charges, and realized capital gains, were $4.1 billion, up 3 percent from 1998.

Life and Savings investments, including investments of the Separate Accounts, increased $6.4 billion to $48.3 billion. The growth in the investment balance was due to a 37 percent increase in Separate Accounts assets from variable annuity sales and strong sales of fixed annuity products, partially offset by lower unrealized gains on fixed income and equity securities. Investment income increased 7 percent as a result of higher investment balances and additional income due to the acquisition of American Heritage Life.