UPDATE: Allstate Unveils Capital Mgmt Plans

 The Allstate Corporation ALL today announced a plan to use preferred stock and subordinated debt to refinance a portion of its existing debt. The company expects to retire approximately $3.0 billion of outstanding senior and subordinated bonds by utilizing a combination of preferred stock, debt and cash. "Today's announcement is another example of Allstate's proactive and disciplined capital management," said Thomas J. Wilson, chairman, president and chief executive officer. "The net result will be more equity in the capital structure, lower capital cost and a longer maturity profile, with no meaningful impact on ongoing earnings. These actions further enhance our strategic and capital flexibility and take advantage of the current unprecedented low cost of these capital sources." "This comprehensive capital plan will retire outstanding debt primarily through issuing new securities," said Steve Shebik, chief financial officer. "The company will repay or pre-fund $1.2 billion of debt maturing in 2013 and 2014. In addition, we expect to purchase through tender offers, portions of $4.3 billion of Allstate's outstanding debt obligations at a premium, which would result in a charge to earnings in the second quarter of 2013. Funding will come from the issuance of perpetual preferred stock, subordinated 'hybrid' debt, senior debt and cash balances. There will be no impact on Allstate's current share repurchase programs." Allstate has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Allstate has filed with the SEC for more complete information about Allstate and this offering. You may obtain these documents free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Allstate will arrange to send you the prospectus if you call 1-800-416-8803 toll-free to request it.