Choose your own directionBuilding a business as an Allstate Exclusive Agent

Building a Business As an Allstate Exclusive Agent

The following overview highlights the R3001 start-up agency opportunity.* Agency owners are independent contractors and are not employees of Allstate. The information in this overview is for the 2008 R3001 start-up agency opportunity. All information, including bonus, revenue, compensation, and education information is subject to change.

See the 2008 R3001 Exclusive Agency Agreement, the Exclusive Agency Independent Contractor Manual, the Exclusive Agency Independent Contractor Reference Guide, the Supplement for the R3001 Agreement, and the Allstate Agency Standards for full details. These documents will be available on January 1, 2008.

* Excludes New York and New Jersey

2

Join an Industry Leader

ENJOY THE BENEFITS OF WORKING WITH ALLSTATEAllstate provides you with support that is among the best in the industry

High brand-name recognitionA comprehensive education program for new agentsUnlimited money-making potentialOwnership of the economic interest in the book of business your agency writesAgency Technology Allowance for Agency Owned Technology (AOT)In-house claims organization with 24 x 7 serviceA targeted direct-mailing program with hundreds of Allstate-approved marketing materials designed to help you generate revenue for your agencyAn exciting awards and recognition program that rewards you for achieving business objectives established by AllstateSupport from Allstate’s field distribution leadership groupPotential to own multiple locations

3

Getting Started

WHAT YOU NEED TO SUCCEED AT ALLSTATERequirements

Available start-up capital to meet cash flow market requirementP&C and Life/Health licensesNASD Series 6 license (and Series 63 license if required by state law), which will need to be obtained within a certain time after agency appointment

Characteristics Proven track record of successSelf-motivated Goal and success-orientedWilling to take risksAble to hire, develop, and manage staffPossess an entrepreneurial spiritDriven to succeed and make a lot of money

4

Navigating Your Business Options

DECIDE HOW TO RUN YOUR BUSINESS

Develop your business planResearch market demographicsConduct cash flow review

Find your locationAssist with identifying office location and get field distribution leadership approvalNegotiate your leaseEstablish office set-up

5

Becoming an Exclusive Agent

BENEFITS OF REPRESENTING ALLSTATESupport from an industry leaderAccess to education, 24-hour customer service and dynamic recognition programsAttractive compensation package

WAYS TO EARN REVENUEProperty and Casualty (P&C) commissionsAllstate Financial commissions Education BonusAgency Establishment BonusAgency Development Bonus IAgency Development Bonus IIAgency Performance Profile Agency Bonus

6

Property and Casualty Commissions

P&C COMMISSIONS SCALE

* Excludes state exceptions

7

Allstate Financial Opportunity

TWO WAYS TO EARN ALLSTATE FINANCIAL REVENUE

Write life and financial products on your own (“Solo” business)

Partner with an Exclusive Financial Specialist (“Shared” business)

Allstate Financial enhanced commission scales are based on your productivity – the more you write, the higher the commission scale

8

Comprehensive Education Program

ALLSTATE-PROVIDED EDUCATION TO HELP YOU GET AHEAD

Sign the Education Agreement

Complete a regionally-delivered education program on Allstate’s products and processes – includes a mentoring program, if available

Receive Education Bonus Successfully complete education program$3,000 payable in first month of R3001 Agreement

9

Allstate Support

BRANDED RETAIL ENVIRONMENT (BRE)

BRE: Allows agents to provide a consistent look to their agencies viafurniture, light fixtures, etc.

Agents participating in BRE program will receive a $3,000 bonusBonus is payable in first month of R3001 Agreement

YELLOW PAGES AND CO-OP

Yellow Pages: First year of advertising in the Yellow Pages will be paid by Allstate (approximately $2,500)

Co-op: Agent receives up to 50% reimbursement for company-approved advertising expenses per year (approximately $4,500)

10

Allstate Support, Continued

EXECUTIVE ADVANTAGE*GIVE YOUR AGENCY AN EDGE

Agencies earn a cash value based on agency performance and agency sizeFunds used for goods and services aimed at fueling profitable growthAgencies can use these funds at the Executive Advantage Web page to buy goods and services that can help:

Brand My AgencyGrow My AgencyManage My Agency

Agency Owned Technology (AOT)*

AOT: Provides you flexibility to lease/purchase technology (within Allstate’s specifications) that meets your unique needsYou select the technology vendor for installation and support; you may use Verizon, for example, or any vendor of your choiceAgency Technology Allowance can assist with the cost of your AOT

11* This work is still in progress

Tier Structure

USE OF TIERS

Four tiers based on P&C performance in relation to your cash flow Tier 1: at least 225% of your baseline cash flowTier 2: 150% to 224% of your baseline cash flowTier 3: 90% to 149% of your baseline cash flowTier 4: <90% of your baseline cash flow

Tiers are determined monthly

12

Agency Establishment Bonus

AGENCY ESTABLISHMENT BONUS

Bonus payout is based on your tier

Your tier will be based on your cumulative production in months 1 – 3 relative to your baseline cash flow for months 1 – 3

Tier 1: $10,000Tier 2: $7,500Tier 3: $5,000Tier 4: $0

Agency Establishment Bonus will be paid in month 4

13

Validation Requirements

Validation Requirements

Two production requirements (one for Property & Casualty – P&C, and one for Allstate Financial – AF) need to be achieved within the first 6 months of agency affiliation

The P&C requirement is derived from your baseline cash flow– The P&C requirement is 90% of the baseline cash flow (Tier 3 level)

The Allstate Financial requirement is $5,000 or more in Allstate Financial production credit

Additional validation will occur at 12 months

All validation requirements are conditions of the agency relationship. Failure to meet the validation requirements will lead to termination of the Agency Agreement.

14

Agency Development Bonus I

Agency Development Bonus I (ADB I)

ADB I is eligible to be received/paid in months 2 – 37*

Based on your tier determined by your current month’s production, a bonus rate will be applied to your current month’s net new P&C written premium, and a bonus will be paid in the following month

See next slide for bonus rates by tier and month

15

* ADB I will also be paid in months 38-49 for any month you achieve Tier 1 status during months 37-48; ADB I will also be paid in months 38-43 for any month you achieve Tier 2 status during months 37-42

Agency Development Bonus I, Continued

AGENCY DEVELOPMENT BONUS I (ADB I) SCHEDULE

16

Agency Development Bonus II

Agency Development Bonus II (ADB II)

ADB II is eligible to be received/paid in months 2 – 37*

Based on your tier determined by your current month’s production, a dollar amount will be applied to your current month’s P&C net Policy in Force (PIF) growth over prior month, and a bonus will be paid in the following month

See next slide for dollar amounts by tier and year

17

* ADB II will also be paid in months 38-49 for any month you achieve Tier 1 status during months 37-48; ADB II will also be paid in months 38-43 for any month you achieve Tier 2 status during months 37-42

Agency Development Bonus II, Continued

AGENCY DEVELOPMENT BONUS II (ADB II) SCHEDULE

18

Agency Performance Profile Agency Bonus

AGENCY PERFORMANCE PROFILE AGENCY BONUS

Agency Bonus for agents with 36 months or less of affiliation is determined by agency performance on the Agency Performance Profile measurement system

Calculated as a % of total P&C written premiumAnnual bonus, with the bonus period running from January through December of calendar yearBonus is paid after the end of the calendar yearFirst year of bonus is pro-rated

Agency Performance Profile measurement system for agents with 36 months or less of affiliation who are eligible for Start-up Agency incentive compensation is built on three independent measurement categories:

RetentionPolicy growth over cash flow policy growth goalAllstate Financial production credit

19

Revenue Summary for New Exclusive Agents

20

Receive Support from Allstate

TO HELP YOU MEET BUSINESS OBJECTIVES, YOU’LL HAVE SUPPORTFROM FIELD DISTRIBUTION LEADERS

Support from a New Agency Consultant (NAC) for the first 18 months

Ongoing support from field distribution leaders, including scheduled Agency Status Reviews at certain months

21

Awards and Recognition

AS AN EXCLUSIVE AGENT, YOU’LL HAVE THE OPPORTUNITY TOQUALIFY FOR ALLSTATE’S EXCITING AWARDS AND RECOGNITIONEVENTS

Regional Champions ConferenceOvernight event with spouse or guest

Chairman’s ConferenceCompany-wide conference trip with spouse or guest

Chairman’s Inner CircleAdd-on trip to Chairman’s Conference with spouse or guest

Leaders ForumBusiness meeting for top agencies to network, share a wealth of ideas and learn from the “best of the best”

Short-term/local promotions may be available throughout the year

22

This overview is confidential and proprietary information which is the exclusive property of Allstate Insurance Company and its affiliates, and subsidiaries, including Allstate Life Insurance Company (the “Company”), and may not be disclosed to third parties, other than outside advisors or as required by law, without first having obtained written permission from Allstate Insurance Company.

Securities offered through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member NASD, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. 877-525-5727.

Commission and bonus amounts are subject to change.Allstate is an Equal Opportunity Company.

For more information, contact Allstate toll-free at 877-258-9012, or visit allstateagent.com.

©2007 Allstate Insurance Company. allstate.com