Allstate Reports 22% Increase in 2005 First Quarter Net Income EPS, 16% Increase in First Quarter Operating Income EPS and Record Property-Liability Underwriting Profitability

Business Wire, April 20, 2005

"Allstate Financial also turned in a solid performance for the quarter. Premium and deposits of almost $4 billion were 15.2% over the first quarter of 2004 with double digit growth rates experienced in our Allstate agency, bank, broker-dealer and independent agency distribution systems. Operating income of $149 million was 12.9% over the first quarter of 2004, driven by investment and benefit margin growth.

"In the quarter, we repurchased 13.4 million shares at $706 million, which is an excellent start to our previously announced $4.0 billion share repurchase program to be completed in 2006. As previously announced, we also increased our quarterly dividend to $0.32 per share, a 14.3% increase over prior year. We will use capital to grow profitably and achieve our targeted returns. In addition, as history has shown, we will return capital to shareholders when we are unable to effectively deploy all the capital we are generating in our various businesses. Profitable business growth in addition to these capital management strategies will continue to drive growth in EPS and book value per share in the future.

"Our operating income return on equity for the past four quarters was a very attractive 17.2%, after absorbing the unusually high level of catastrophe losses in the third quarter of 2004. Overall, the first quarter was an outstanding start to the year. We remain very optimistic about the remainder of 2005 and beyond."