ALLSTATE CORP Annual Report, Year Ended Dec 31, 2009

Allstate Corporation (ALL) reported a significant recovery in its financial performance for the fiscal year ending December 30, 2009, compared to a challenging 2008. The company swung from a net loss of $1.68 billion in 2008 to a net income of $854 million in 2009. This turnaround was primarily driven by a substantial improvement in its Property-Liability segment, which posted a net income of $1.54 billion in 2009, a marked increase from $228 million in 2008. This segment benefited from a combined ratio of 96.2 in 2009, down from 99.4 in 2008, indicating improved underwriting profitability, largely due to lower catastrophe losses which were $1.27 billion less than in the prior year. The Allstate Financial segment, however, continued to face challenges, reporting a net loss of $483 million in 2009, an improvement from a $1.72 billion net loss in 2008. This segment was impacted by lower net investment income and increased amortization of deferred policy acquisition costs. Despite the ongoing issues in the financial segment, the company's overall financial position strengthened, with shareholders' equity increasing by 31.4% to $30.84 per diluted share. The company also managed its investment portfolio effectively, reducing net realized capital losses significantly and demonstrating a strategic focus on risk management and capital efficiency.