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Virtually anywhere you go inAmerica today, you’ll find evi-dence of Allstate. In fire houses,community centers, schools,non-profit organizations and uni-versities, Allstate people havecommitted their hands, heartsand minds to helping others.

The desire to reach out to peopleruns deep in the fabric of ourcompany. We help peoplethrough times of loss. We helpthem achieve financial security.With our insurance and financialproducts, people can buy carsand homes confidently, start new businesses and plan forretirement.

We take the values that helpguide our business – integrity,caring, dependability, diversityand performance – and applythem toward being a model corporate citizen. We give backto the communities that makeour success possible – throughour corporate strength andthrough our people strength.That’s our stand.

The Allstate Foundation, estab-lished in 1952, provides fundingfor organizations that focus on three core areas: building safeand vital communities; fostering economic empowerment; andteaching tolerance, inclusion and diversity. We believe theseare the most critical challenges facing people today. We alsobelieve we can make the mostpositive difference in these areas.

In 2003 and 2004, The AllstateFoundation will provide morethan $30 million to organizationsacross the country. And throughthe $25 billion of municipalbonds and more than $110 mil-lion in community investments,Allstate plays a large part in revi-talizing neighborhoods all overthe country.

At the grassroots level, thou-sands of our employees andagents freely donate their per-sonal time to help lift the spiritsand fortunes of people in theircommunities. You'll find themworking in soup kitchens, tutor-ing children, rehabbing parks and buildings, spending time with seniors and cleaning upvacant lots as part of what wecall our Helping Hands program.And in 2003, the Agency Handsin the Community Program waslaunched with $1 million inAllstate Foundation grants set

aside for non-profit organizationsthat Allstate agencies support.

The values we cherish are alsoevident in the actions of ourcompany. In an age of corporatemistrust, several leading investorgroups recently recognizedAllstate as among the very bestin corporate governance inAmerican business.

Teddy Roosevelt said, “This coun-try will not be a good place forany of us to live in unless wemake it a good place for all of usto live.” For that reason, andmany others, I’m proud to be partof Allstate – a company with abig heart, many hands and strong minds.

Edward M. LiddyChairman, President and CEOAllstate Insurance Company

Chairman’s Letter

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Vital Statistics

Who We Are The Allstate Corporation is the nation’s largest publicly held personal lines insurer. A Fortune50 company, with $134 billion in assets, Allstate sells 13 major lines of insurance, including auto, property,life and commercial. Allstate also offers retirement and investment products and banking services.

Our People The Allstate Corporation encompasses nearly 70,000 professionals. Of our employees, 29 per-cent are minorities; 60 percent are women. Allstate pays $2.4 billion in employee compensation and bene-fits per year, and invests $80 million in employee learning per year. Approximately 84.5 percent of eligibleemployees own Allstate shares through our employee profit sharing plan.

Our Customers Allstate provides insurance products to more than 14 million households. We insure oneout of every eight autos and homes in the U.S., and we are one of the country’s leading life insurers.

Our Network Allstate has operations in 49 states and Canada. Customers can access Allstate products and services through Allstate agents, Allstate.com and 1-800-Allstate®. In addition, the Encompass andDeerbrook brand insurance products are sold through independent agents.

Our Economic Impact In 2003, Allstate paid $12.2 billion in auto and property claims. The AllstateFoundation donated $12.5 million to non-profit organizations and awarded $450,000 in scholarships. The Allstate Corporation, its employees and agents donated $4 million through the Giving Campaign to non-profit organizations. Allstate currently holds $25 billion in municipal bonds and more than $110 million in community investments.

Agent Autos Dwellings Life Policies CommercialLocations1 Insured Insured2 Insured Policies

AK 27 76,250 42,255 6,069 4,348AL 159 260,909 111,296 25,349 7,004AR 72 119,268 47,705 9,606 5,355AZ 233 355,859 179,616 32,043 7,321CA 1,112 1,844,114 1,061,767 184,438 39,747CO 213 223,364 117,837 22,056 5,835CT 132 318,352 142,542 26,323 5,556DE 15 24,057 17,410 3,300 1,394FL 769 1,445,494 639,748 125,674 64,604GA 325 617,391 266,016 55,124 12,563HI 32 51,804 38,702 7,460 1,168IA 38 61,602 23,365 5,263 1,525ID 64 120,461 47,022 6,857 2,853IL 494 815,313 477,970 101,108 12,290IN 164 290,613 126,308 35,822 3,199KS 71 92,417 31,155 8,968 6,130KY 103 189,449 81,957 19,318 4,286LA 241 375,759 183,923 46,781 10,715MD 220 448,294 236,708 45,590 7,644ME 25 93,611 30,145 4,553 1,576MI 283 379,888 189,010 53,398 6,010MN 110 174,675 79,899 12,944 2,201MO 172 193,823 77,135 16,822 4,408MS 90 99,573 54,735 12,964 3,064MT 28 43,397 11,343 3,543 3,748NC 303 558,321 213,137 45,695 12,365ND 6 11,525 3,839 1,068 1,037NE 34 53,487 21,338 6,121 3,403NH 39 81,670 29,451 7,888 1,489NJ5 157 704,057 264,406 32,788 15,339NM 91 140,196 65,389 12,300 6,005NV 102 186,428 85,928 16,033 3,531NY 741 1,476,762 823,171 127,263 45,961OH 344 641,509 297,104 64,324 6,380OK 133 211,077 59,475 15,761 4,394OR 153 254,626 114,192 22,551 5,558PA 422 948,157 430,833 83,430 10,080RI 34 72,003 28,913 6,020 1,258SC 163 449,570 171,987 26,202 7,051SD 7 7,275 2,969 709 767TN 182 264,286 139,923 32,426 6,050TX 1,046 1,956,809 738,305 148,675 56,156UT 147 303,359 114,712 16,417 5,394VA 279 594,609 257,830 51,927 10,961VT 11 48,443 17,305 2,547 1,059WA 250 430,070 219,182 43,124 10,571WI 63 127,598 69,962 11,786 3,144WV 35 76,782 29,669 5,970 2,457WY 14 21,949 6,085 1,884 1,567

Allstate 2003 Vital Statistics by State

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1 Locations includes only full-time agents2 Dwellings includes homeowners, condos, and renters3 2003 Municipal Bond Holdings available online April 15, 20044 2003 State Taxes available online October 31, 20045 Personal P&C products underwritten by Allstate New Jersey Insurance Company

Personal Property Personal Property Municipal Bond The Allstate Corporationand Casualty and Casualty Holdings 20023 Group of Companies

Claim Payments Claims Settled State Taxes 20024

122,695,000448,204,000277,320,000334,707,000

2,639,442,921976,251,000224,230,000141,040,000

1,214,004,114271,105,000118,515,00064,320,000I2,115,000

2,592,837,115771,615,000139,045,000170,260,000413,209,802121,643,984

56,786,587526,745,000266,835,000352,395,000202,645,000

81,440,000395,165,000

62,375,000366,570,000205,475,000546,187,000113,680,000271,750,000

1,724,895,243513,104,000169,560,000197,655,000789,685,696137,360,000360,003,29740,895,000

329,386,0413,820,023,026

308,865,000222,175,098

25,705,000945,825,053232,485,000224,620,00045,962,259

58,807,189 23,701142,039,187 68,229

58,281,379 33,475222,669,539 160,727

1,262,794,160 691,941153,150,560 88,886201,583,393 89,127

22,600,699 10,6641,017,245,172 505,732

353,779,025 188,18125,129,566 12,82625,217,324 16,681

44,849,661 38,800534,343,188 265,130140,705,402 84,933

45,761,243 30,169111,419,302 56,950284,340,941 188,337353,991,237 219,737

37,060,396 24,091371,561,943 263,573

85,934,927 56,154121,150,725 66,29162,460,015 37,05523,363,979 14,241

281,371,939 172,3884,277,059 3,342

24,830,306 18,43737,200,221 23,481

560,721,675 171,02263,185,486 42,807

149,293,401 66,9501,321,991,561 494,283

300,903,392 177,038117,936,736 60,913118,916,134 83,360657,502,525 323,41844,771,871 22,356

227,775,914 138,6143,977,079 2,470

182,774,220 75,2581,475,856,363 857,384

121,638,298 97,894408,622,990 219,594

21,486,082 15,919248,864,311 162,257

51,886,968 32,68759,892,737 39,52411,715,527 7,614

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3,172,3589,728,5933,331,864

10,610,67966,886,674

3,943,5596,713,310

958,33864,481,56717,223,4372,696,4501,379,4532,835,0089,152,6625,763,7032,726,8654,555,736

19,553,82012,082,487

1,876,8698,108,9674,367,2734,738,3224,477,8741,715,815

12,835,856264,704

1,145,7721,892,864

19,226,3974,659,7739,191,063

43,058,7308,737,2055,449,1412,022,803

24,106,7171,660,0097,624,940

409,4957,846,022

50,345,8915,746,794

16,293,274961,618

10,382,6451,479,3535,800,500

249,231

Allstate received high marks in 2003 from three organizationswho rate companies on their corporate governance.

The Investor ResponsibilityResearch Center, an independentresearch group, rated our boardof directors among the top 10most independent boards in itsstudy of S&P “super” 1,500 com-panies. This research firm basedits findings on its own definitionof independence, which isstricter than existing and pro-posed regulations.

Institutional ShareholderServices, which takes intoaccount numerous objective fac-tors relating to the company’soverall governance processes,rated Allstate as outperforming95.4 percent of the companies inthe S&P 500 Index and 96.8 per-cent of its peer industry group.

GovernanceMetrics International,an independent governance ratings agency, gave Allstate ascore of 10.0 – its highest rating.Only 17 out of the 1,600 globalcompanies examined receivedthis rating.

“At the core of our company are only two things: people andcapital. With the right people and sound stewardship of ourfinancial resources, we can confi-dently deliver on our promises toour customers, employees andshareholders.”

Ed Liddy

At Allstate, we believe that acting with integrity in every-thing we do is critical to a corporation’s overall health.Investor and public confidence is no longer based solelyon performance. Increasingly, it’s also based on a corpora-tion’s structure, board of directors, policies and guidelines,culture, and the behavior of leaders, agencies andemployees.

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Corporate Governance

“Integrity without knowledgeis weak and useless, and knowledge without integrityis dangerous and dreadful.”

—Samuel Johnson

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Investing in Communities

Allstate has been fortunate dur-ing its 70-year history to benefitfrom great leadership, committedemployees and agents and loyalcustomers. Through the years,we’ve witnessed the birth of newcommunities and the failinghealth of others. So when itcomes time to choose where toinvest its dollars — as well as its hands, hearts, and minds —Allstate has always placed an emphasis on revitalizing communities.

From assisted living homes forthe elderly or day care centersfor kids, to infrastructureimprovement and renovatinglibraries and hospitals in innercities, the investments made byAllstate are fueling growth andprosperity in many corners ofAmerica. Our investments arehelping to build strong and vitalcommunities and improve thequality of life of the people wholive there.

“I believe that every right implies a responsibility; every opportunity, an obligation; every possession, a duty.”

—John D. Rockefeller Jr.

Municipal Bonds

Allstate’s long-term municipalbond holdings to date equal morethan $25 billion. “First and foremost,” explains InvestmentVice President Dee Even, “thesebonds are excellent investmentsfor our company. Second, theysupport work in cities that resultsin infrastructure improvements.And third, through our non-ratedmunicipal bonds, we supportspecialized projects that are higher risk and would havedifficulty getting funded.”

Portfolio Investments

For many years, Allstate has sup-ported community developmentorganizations through low-inter-est loans to established credit-worthy organizations. “Our singleintent is to support efforts andprojects targeted to improvingunder-represented urban markets,” explains Even.

Today, Allstate provides morethan $110 million worth of portfo-lio investments in organizationsthat help urban markets flourishthrough redevelopment. “Weinsist that organizations benational and credit worthy,” says Even. These organizations

support critical projects that cen-ter on home ownership; office,retail and commercial develop-ment; nursing home, childcareand job training facilities; andcharter schools. The loans aretypically long-term, 20-year loansoffered at below prime rates.

Organizations supported throughAllstate’s portfolio investmentsinclude the NeighborhoodHousing Services Association(NHSA, part of theNeighborWorks® Network), LocalInitiatives Support Corporation(LISC), Impact CommunityCapital, Illinois Facilities Fund andthe La Raza Development Fund.

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National Loans

NeighborWorks® Network – $45.3 millionProvide low-interest loans to first-time home buyers.

Impact Community Capital (in California) – $22 million funded and $25 million committed for a total of $47 millionProvide financing for affordable housing.

Local Initiatives Support Corporation – $14 millionProvide financing for community development.

La Raza Development Fund – $2.5 millionProvide financing for affordable housing, lines of credit, and community projects.

Illinois Facilities Fund – $5 millionBuild childcare centers.

Affordable Housing LoansThrough the NeighborWorks®

System

Allstate is a major investor in theNeighborWorks® system, whichpromotes locally directed com-munity revitalization and afford-able-housing opportunitiesacross the nation. The systemhas three interrelated compo-nents: NeighborhoodReinvestment Corporation; the

NeighborWorks® Network of morethan 220 community-based non-profits serving more than 2,300communities; and NeighborhoodHousing Services of America(NHSA), a specialized secondary mortgage market servicing localnetwork organizations.

Today, Allstate has more than $45 million invested in theNeighborWorks® system,providing funds to help familiesmake necessary improvements to their homes or to becomefirst-time home buyers.

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Most recipients of NeighborWorks®

loans from local network organi-zations could not qualify for loansor lines of credit from standardlenders. In fact, 71 percent ofloans made are to very low- orlow-income households.

“The NeighborWorks® system isthe single largest non-profitorganization that we have invest-ed in,” says Even. “They’re goodinvestments for us, and goodinvestments in families and com-munities that need them.”

Local Loans Through LocalInitiatives Support Corporation(LISC)

The loans made to LISC byAllstate — totaling more than $14million — are focused on commu-nity development projects in fivecities: Chicago, Cleveland, LosAngeles, New York andWashington D.C.

“We identified markets whereAllstate has a strong history, andwhere we wanted to strengthenour presence by connecting withefforts around neighborhood revi-talization,” says Tom Wilson,president, Allstate Protection.

Today, Allstate investments inLISC are helping developmentorganizations to purchase and develop vacant lots; build affordable homes, schools, community centers, assisted living facilities, day care centers, health care centers,

and hospitals; renovate libraries;and provide young adults withjob readiness, placement andtraining services, to name just a few.

“We deeply appreciate Allstate’stremendous support for theseimportant projects across thenation,” says LISC President andCEO Michael Rubinger. “We aregrateful for our partnership withAllstate and their commitment tocommunity development.”

Allstate’s Commitment Throughthe Allstate Bank

The Allstate Bank, a division of Allstate Financial, partnerswith non-profit organizations to help build safer, stronger communities.

The Allstate Bank provides finan-cial support to the IllinoisFacilities Fund, an organizationthat finances real estate for non-profit agencies that servelow-income neighborhoods.

Working together, the AllstateBank and Allstate InsuranceCompany helped to create theChild Care and Education Fund.This fund provides additionalfinancial support to the child carefacility industry.

Additionally, the Allstate Bankinvests in Lakefront SupportiveHousing, an organization thatprovides support to homelessadults and families and people

at risk of homelessness. The goal of Lakefront SupportiveHousing is to stabilize people inpermanent housing and to helpthem achieve goals that lead toan independent life.

The Allstate Foundation

A socially and economicallydiverse society will always have itschallenges. And socially responsi-ble individuals and companies willalways have a role in helping toovercome those challenges.

Since 1952, Allstate has con-tributed to thousands of organi-zations through The AllstateFoundation. Today, The AllstateFoundation funds more than 1,000programs per year that focus on solving some of society’s cur-rent challenges: creating safeand vital communities; fosteringeconomic empowerment in allsections of society; and teachingtolerance, inclusion and diversityto people across the country.

In 2003 and 2004, The AllstateFoundation will contribute morethan $30 million to non-profitorganizations that have demon-strated their ability to make a difference.

“We belong to the community.” —Henry David Thoreau

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Through The Allstate Foundation,Allstate helps communitiesbecome economically strong andsafer so those who live there feela sense of safety, belonging andcommitment. The AllstateFoundation supports thousandsof communities every year, spon-soring anti-violence and commu-nity safety programs for kids;providing funds to rebuild homesand community centers; andsponsoring projects that revital-ize neighborhoods and reducecrime.

Allstate also supports organiza-tions that provide assistance andeducation about catastropheresponse and risk management.As a core part of our business,we have a vested interest in helping communities prepare for and manage through catas-trophes.

Hands… Creating Safe and Vital CommunitiesIn some communities, it’s the corner diner. In others, it’sthe country club or the town hall. Every community has places where people connect. Those connections keepcommunities viable and strong. But when crime creeps in,those communities begin to crumble.

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“Nothing great was ever accomplished without enthusiasm.” —Ralph Waldo Emerson

Boys & Girls Clubs of AmericaStreet SMART

At Allstate, we believe a commu-nity cannot flourish if it is notsafe. Since 1995, through theStreet SMART Program, TheAllstate Foundation and the Boys& Girls Clubs of America haveprovided club members, ages 11to 13, with positive, life-enhanc-ing programs and skills to helpreduce violence, gang recruit-ment, crime and juvenile delin-quency in their communities. Todate, the Street SMART programhas touched the lives of 118,000children in America.

“We teach them how to be smartwhen it comes to street issues,”says Melissa Kennerson, aninstructor at the Boys & GirlsClubs of Acadiana’s OpelousasUnit in Opelousas, Louisiana.

Trained youth development pro-fessionals run the program,which includes workshops aboutgang awareness and resistance,conflict resolution skills and howto be positive peer helpers toyounger kids.

Kellen Guillory, age 10, says thatas a result of Street SMART, hehas become aware of ways tospot other youths who may beinvolved in gangs and knows how to avoid getting involvedwith them. He knows now tocheck for weapons, signs andclothing, as well as for violentpersonality traits.

The lesson for another student,Malcolm Payne, is that you cansolve problems without violence.

“It is always good to tell an adultwhat is going on,” young Paynesays. “And I learned that youdon’t always have to get mad.You can talk things out.”

Another Street SMART partici-pant describes how his groupdesigned its own T-shirt, callingthemselves, T.A.G. (Truth AboutGangs). “We put that on ourshirts along with a phoenix bird.All of us read the Harry Potterbooks and think the phoenix birdrepresents rebirth — like whenyou are in a gang and want to getout. Boys & Girls Clubs can helpyou and you can be like thephoenix bird and start over.”

In addition to teaching kids howto communicate better and howto resolve conflicts positively,Street SMART is also teachingkids how to be community lead-ers. As a part of the StreetSMART curriculum, kids plan anddirect community awarenessevents about gang resistance andconflict resolution. In their ownway, the kids are helping othersfeel a sense of hope and oppor-tunity, and they are contributingto the creation of a safe and vitalcommunity.

Roxanne Spillett, president of theBoys & Girls Clubs of America,says, “Together, Allstate and theBoys & Girls Clubs help to buildresponsible, productive and car-ing citizens, which will go a longway toward securing the future ofAmerica and preserving the val-ues that make this country great.”

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National Crime Prevention CouncilBe Safe and Sound

If there is one thing most princi-pals and teachers would likemore than anything else, it wouldbe for parents to be moreinvolved in the ongoing educa-tion of their children. Likewise, ifthere is one thing most parentswant, it would be for schools andcommunities to be safer for theirchildren.

Through a grant from The AllstateFoundation, both of these objec-tives are being met through theBe Safe and Sound campaign, aninitiative of the National CrimePrevention Council (NCPC) inpartnership with The AllstateFoundation, ASSA ABLOY Group,the Security Industry Associationand Verify Systems.

“Kids face a war of issues,” says Meghan Sharp, NCPC.

“Theft, bullying, intimidation, sex-ual harassment, guns, cliques.Through the Be Safe and Soundcampaign, we provide parentswith the tools to work withadministrators and teachers toidentify the issues that exist, anddevelop action plans to addressthem.”

Be Safe and Sound begins withthe formation of a school safetyand security action team, whichassesses the school’s environ-ment and identifies potentialsafety and security issues. Theprogram was put through its

paces recently at two very differ-ent schools: the Edwin M.Stanton Elementary School inPhiladelphia and the WoodfordCounty High School in ruralKentucky.

“Both schools had some basicsecurity needs,” says Sharp. Thefront door of the elementaryschool needed to be monitored atall times to prevent unauthorizedpeople from coming into theschool. At the high school, doorswere sometimes propped openby students looking for easyaccess.

Using the grant that The AllstateFoundation provided, the highschool will be able to replace thelocks, install a new digital securi-ty camera system and develop ID badges for all students, staffand visitors. The elementaryschool will be able to purchase asecurity camera to monitor thefront door.

Other issues discovered at theschools were a little more com-plicated to solve. “We foundsome behavior issues at thePhiladelphia school,” Sharpexplains. “Students reported bul-lying and intimidation and teach-ers felt a lack of respect fromstudents.”

As a potential solution paidthrough The Allstate Foundationgrant, teachers and parents willreceive training in school climateissues and a schoolwide behavior

program will be put in place. A safety and behavior resourcecenter for parents will also beestablished with funding fromThe Allstate Foundation.

At the high school, school climate was affected by weakstudent-teacher relationships. Ina survey of students, the assess-ment found that only 29 percentof students said they could trusttheir teachers. In response, TheAllstate Foundation grant paid for professional development for the teachers to help themdevelop positive relationshipswith students.

In the coming months, Be Safeand Sound will focus on expandingthe campaign into 20 states.

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Hearts… Fostering Inclusion, Tolerance and DiversityAllstate believes personal safety and security can only be achieved when individuals feel a sense of belonging and acceptance – feelings that are fostered when oursociety is one that honors tolerance, inclusion and diversity.

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Allstate focuses on supportingorganizations that teach tolerantand inclusive behaviors withoutcompromising the uniqueness ofthe individual. We combat thebarriers to diversity and inclusionby supporting programs thataddress the roots of discrimina-tion. And through our support

of workshops in schools andcommunity organizations, weencourage people to challengeand speak out against acts of hate.

“Everything that we see is a shadow cast by that which we do not see.”

—Martin Luther King Jr.

The Law and You

Today’s headlines are full of stories detailing encountersbetween law enforcement officials and young people.Unfortunately, some of these sto-ries do not have happy endings.

In 1998, Allstate partnered withthe National Association for theAdvancement of Colored People(NAACP), the National Organiza-tion of Black Law EnforcementExecutives (NOBLE) and theHispanic American PoliceCommand Officers Association(HAPCOA) to develop The Lawand You, an educational cam-paign aimed at teaching youngpeople how to manage interac-tions with law enforcement in apositive way. Today, The Law andYou is used by schools, commu-nity organizations, law enforce-ment organizations and youthcenters all over the country.

“Many kids just don’t know whatpolice officers are looking for,”says Police Officer Annie Mack-Evans. “For example, they don’tknow that reaching quickly into abackpack can trigger certain sus-picions for the officer. The Lawand You helps us all understandeach other a little better, andhelps us diffuse potentially nega-tive situations.”

Striving to bridge the gap inunderstanding between the twogroups, The Law and You uses aseries of video vignettes thatdemonstrate what youths shoulddo when approached by a policeofficer. The videos explain theofficer’s point of view and givetips on how to keep the interac-tion positive.

“I learned lots of stuff,” says AdanLupercia, from Washington, D.C.

“I learned how to interact withpolice when they approach us.Just because they have a uniform,a badge and a gun doesn’t meanthat we can’t talk to them likehuman beings.”

To date, more than 1,500 videoshave been distributed across thecountry and shown in schoolsand to youth groups, and Allstatehas broadened our partnershipsto include the National CrimePrevention Council (NCPC) andOmni Youth Services. As its influ-ence grows, The Law and Youcontinues to make a significantdifference, one kid at a time.

“I feel like when I go back,” con-tinues student Lupercia, “I needto go back and tell them all thatI learned – every single thing –so we have a safer, better com-munity. For us, my two little sis-ters, I want them to grow up inthat same community, go to a youth center and be a leaderlike me.”

“NOBLE’s partnership withAllstate in the development andrevisions of The Law and You hashad tremendous success in edu-cating not only our youth, but thecommunity at large,” says JessieLee, executive director of theNational Organization of BlackLaw Enforcement Executives. “Ithas made a big impact on ourmost important audience — kids,our future leaders.”

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Organization of ChineseAmericansFighting Hate Crimes

Founded in 1973, theOrganization of ChineseAmericans, Inc. (OCA) is anational non-profit, non-partisanadvocacy organization dedicatedto securing the rights of ChineseAmerican and Asian Americancitizens. Representing a popula-tion of nearly 12 million, OCAfocuses on securing social jus-tice, equal opportunity and equaltreatment of Asian Americans.

“We work to educate the AsianAmerican community about hateincidents and hate crimes,”explains OCA’s Director ChristineChen. In workshops funded byThe Allstate Foundation andsponsored by OCA’s 44 chaptersin the United States, OCA raisesawareness of hate crimes andhate incidents and helps itsmembers learn better strategiesto deal with them. Workshopsinclude an upfront presentationand video that set the stage forthe discussion, active dialoguewith hate crime victims and theirfamilies about their experiencesand sometimes discussions with local law enforcement sothat they better understand the issues.

“After September 11, our workbecame even more important,”says Chen. Following the terroristattacks, racial profiling and anti-immigrant sentiments createdmore incidents of hate crimesagainst Asian Americans.

“We hope that our support oforganizations like OCA will helppeople understand and valuetheir differences, not react out offear or intimidation,” saysAllstate CEO Liddy.

With funding from The AllstateFoundation, OCA has held six toeight workshops per year for thepast three years.

“We salute Allstate’s efforts inhelping us get this importantmessage out to many people,”concludes Chen.

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The Allstate Foundation supportseconomic literacy programs thathelp people understand thebasics of finance and insurance,as well as economic conceptslike inflation and recession. Withthat knowledge, people canmake more intelligent financialdecisions that will put them on the right track to financialindependence.

Because we’re in the financialservices business, Allstate alsohas a role in helping Americansrealize dreams of homeownership,college education, economicindependence and secure retire-ment. Through financial planningseminars for adults and economiceducation programs for youth, wehelp to inspire those dreams.

Minds… Achieving Economic EmpowermentIt’s the cornerstone of the American dream, the notion that anyone in America can become financially secure and independent. But for many people in our society, thatdream seems more like a fairy tale.

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“The future belongs to those who believe in the beauty of their dreams.”

—Eleanor Roosevelt

Evelyn Purdis

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One Economy

Ours has become a digital world,where access to and use of tech-nology are critical in order toparticipate in the social and eco-nomic mainstream of America.However, less than 30 percent ofthis nation’s lowest incomehouseholds have Internet access.And a survey of 1,000 websitesindicates that less than 10 per-cent are accessible to adults withlimited literacy.

When information is power,access to information is criticalto economic survival. Allstate isworking with One EconomyCorporation to bridge the digitaldivide and help low-income peo-ple gain access to information,raise their standard of living andgain economic independence.

Together, Allstate and OneEconomy Corporation have builtand are using the AboutInsurance webpage to help educate people about the basicsof insurance. About Insurance is part of One Economy’s website, the Beehive(www.theBeehive.org), whichprovides people with accessible,interactive tools and tutorials tolearn basic information relatingto money, health, education, jobsand family.

“The About Insurance section ofthe Beehive mirrors the goals andvalues of One Economy by pro-viding information that is multi-lingual, easy to use and rele-vant,” says One Economy CEORey Ramsey.

For six months ending in April2003, One Economy ran a pilotprogram with 100 low-incomefamilies, including 65 who werepublic housing residents. Eachparticipant received a laptop forpersonal use at home and 10hours of training. One Economytechnology trainers used theAbout Insurance website as atraining tool to teach participantshow to access information usingthe Internet.

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About Insurance is written at anaccessible literacy level and isavailable in English and Spanish.The site answers questions aboutthe role of insurance, types ofinsurance, the basics of gettinginsurance and how to read a policy.

Evelyn Purdis, a mother of twoliving at the former Cabrini-Greenhousing complex in Chicago andone of the pilot program partici-pants, used the About Insurancetool to purchase renters insur-ance, which she never hadbefore. Learning about rentersinsurance got her thinking about life insurance and, moreimportantly, about the future.

Tamara Williams, a mother of 11living at the former Robert TaylorHomes in Chicago, explored thesite with her daughter, Jocelyn.They learned that if she pur-chased her car and renters insur-ance from the same company,she could save money. She alsolearned that adding her daughterto her own policy would be lessexpensive than buying a separatepolicy.

These women and countless others like them are learning notonly how to effectively managetheir risks, but how to plan fortheir futures. About Insurance isa tool for teaching about insur-ance, but more importantly, forteaching about life.

As Ramsey concludes, “WithAbout Insurance on the Beehive,people can successfully navigatethe world around them. We saluteThe Allstate Foundation for making this possible.”

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Junior Achievement

Financial responsibility startsearly. Or at least, it should,according to Junior Achievement(JA). “Our mission is to ensurethat every child in America has afundamental understanding ofthe free enterprise system,” saysJA CEO David Chernow.

Fitting perfectly with the Allstategoal of fostering economicempowerment, The AllstateFoundation granted more than$1,374,500 to JA chapters in2002-2003, and hundreds ofAllstate employees and agentsvolunteered their time workingwith kids through JA programs.

Junior Achievement reachesapproximately 5.2 million stu-dents worldwide. Chernowexplains how the mission isaccomplished: “Through age-appropriate curricula, JA pro-grams begin at the elementaryschool level, teaching childrenhow they can impact the worldaround them as individuals,workers and consumers. Theprograms continue through themiddle and high school grades,preparing students for the economic and workforce issuesthey’ll someday face.”

In the past year alone, 26 Allstateoffices have made grants to JA.Among them, the Florida,Northwest and Texas regionaloffices.

In Florida… The Tampa Tribune, JuniorAchievement, Allstate FinancialServices, and The AllstateFoundation collaborated to devel-op a campaign called “Show Methe Money!” featuring an enter-taining, interactive 16-page insertin the newspaper on February 11,2003. The “Show Me theMoney!” insert contained basicfinancial information for parentsto cover with their children, anexplanation of how the stockmarket works, the importance ofsaving money, the basics of bal-ancing a checkbook, how to usea credit card responsibly, and theworkings of various financialvehicles and institutions. Theinsert also featured a contest fora $10,000 savings bond.

“Our relationship with The AllstateFoundation has enabled us toincrease children’s awarenessand understanding of how toinvest, save and handle money,”says Richard George, JA execu-tive director. “Through the ‘ShowMe the Money!’ insert, we’ve positively impacted thousands ofschool-age children across theTampa Bay area.”

In the Northwest…The Allstate Foundation awardedmore than $25,000 in grants tosupport JA programs at chaptersthroughout the Northwest. Butthe support didn’t end there.

Every Friday for several weeks,Allstate Market BusinessConsultant McGregor Badillotaught students JA’s “PersonalEconomics” curriculum atSeattle’s Rainier Beach HighSchool. Badillo is one of severalagents, financial specialists andemployees who have volunteeredto teach JA courses to K-12 students.

“I plan to take these skills every-where I go,” said one student inthe class. “First to high school,and then to college and the restof my life.”

In Texas… A $30,000 Allstate Foundationgrant funded a JA “feeder” system in the Dallas IrvingIndependent School District. Thegoal is to provide JA education to elementary and middle schoolsthat feed into a high school.

According to the Texas EducationAgency, 33.7 percent of thesestudents are considered econom-ically disadvantaged and at risk.This JA/Allstate partnership tookthe money management messageto 1,100 students in 58 class-rooms.

“Many North Texas students livein some of the most economicallychallenged areas, and TheAllstate Foundation is playing apivotal role in helping to ensuretheir future success,” says JA’sLinda Schoelkopf, president ofJunior Achievement of Dallas Inc.“Allstate understands that to be asuccess within the businesscommunity, it also must be aleader within the community. Thecompany has proven that ‘You’reIn Good Hands With Allstate®.’ ”

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Select List of Allstate Corporateand Foundation Partners 2002-2003

$200,000 and above

American Red CrossBoys & Girls Clubs of America California Community FoundationCity of Chicago Police

Department – Chicago Alternative Policing Strategies

East Bay Community FoundationFairfax Renaissance Development

CorporationFerrock-Ogontz-Belfield

Development OrganizationInjury Free Coalition for KidsJunior AchievementLakefront SROLa Raza Development FundLocal Initiatives Support

CorporationNational Council of La RazaNational Crime Prevention

CouncilNeighborhood Housing Services

of Los Angeles

Neighborhood Housing Services of New York

Neighborhood Reinvestment Corporation

Northwestern UniversityOne Economy CorporationSouth Chicago Neighborhood

Development Corporation South Dallas Fair Park Inner City

Development CorporationUnited Way of Metropolitan

Chicago

$100,000 to $199,999

Big Brothers Big Sisters of America

Chicago Children’s MuseumClaretian Associates Inc.Jobs For America’s Graduates

$50,000 to $99,999

Facing History and OurselvesHabitat for HumanityInsurance Education FoundationMetropolitan Family ServicesMetropolitan Planning Council

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National Association for the Advancement of Colored People

National Endowment for Financial EducationNational Training and Information CenterNational Urban LeagueOrganization of Chinese AmericansThe Foundation for American CommunicationsThe Latino CoalitionUnited Negro College Fund

$25,000 to $49,999

City of Chicago Fire DepartmentLawrence Hall Youth Services University of Buffalo Virginia Crime Prevention Association

The Hands, Hearts and Minds of AgentsToday, there are more than 28,000 agents and insuranceprofessionals working in Allstate agencies across America.And in each city, these dedicated men and women aremaking a difference in their neighbors’ lives – through theprotection Allstate insurance products provide, and theirsupport of organizations in their communities.

Like most people at Allstate, ouragents have a long history ofcommunity involvement. They’recommunity leaders, baseballcoaches, mentors and volun-teers. They’re involved in theirlocal religious organizations,schools, city councils and cham-bers of commerce.

“At Allstate, we’re very proud ofour agents’ involvement in theircommunities,” says Tom Wilson,president, Allstate Protection. Tohonor their involvement, TheAllstate Foundation provides$500 grants to non-profit organi-zations where Allstate agentsvolunteer.

Over the past five years, Allstatehas granted approximately$412,000 to organizations onbehalf of agents. In 2003, theAllstate Agency Hands in theCommunity Program waslaunched with $1 million inAllstate Foundation grants set aside for non-profit organiza-tions throughout the country.

In addition, each year Allstatehonors one special agent for hisor her outstanding communityinvolvement. Named after 32-year-agent Ray Lynch, a businessleader and community servicehero from Fayetteville, NorthCarolina, who died in 1999, theRay Lynch Award is given to anAllstate agent who exemplifiesthe kind of caring and commit-ment to community that Allstatevalues. The 2003 recipient of theRay Lynch Award is Agent JulioGudiño of Norwalk, California.

When you read the record of hiscommunity commitment, you canbelieve it when Gudiño says,

“I enjoy being busy.”

At Gudiño’s request, the $5,000Allstate Foundation grant thataccompanies the Ray LynchAward went to The LatinoCoalition Foundation (TLCF),where he serves on the Board ofDirectors and the ExecutiveCommittee. Washington-basedTLCF researches and developspolicies that are relevant toLatinos’ overall economic, cultur-al and social development whileempowering individuals throughthe promotion of self-relianceand personal responsibility.

“TLCF focuses on everything fromhealth issues to the problems ofinner-city kids,” he explains.

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Gudiño is passionate and activein a wide range of communityservices focusing on helping chil-dren and families in the Hispaniccommunity through lots of TLC –time, love and checkbook.Though not his original intent, his community involvement hasadded greatly to his success asan agent.

“For me, it’s become part of thecost of doing business. Ratherthan costly marketing campaigns,I’d rather spend my time andmoney giving back to the com-munity. That’s good for the com-munity, my business, and is alsopersonally rewarding.”

To offer emergency funding forfamilies in crisis, Gudiño foundedThe United Hispanic Foundation.

“I wanted to form a local, grass-roots movement to serve as alifeline for people in the commu-nity facing hardships.”

He also takes time in a dizzyingschedule to support CommunityHealth Solutions, which providesfree health screenings and infor-mation on preventive medicine;Goals for Life, which offers posi-tive role models and mentors forunderprivileged children; and theHispanic Business Roundtable,which supports and educates the Hispanic small-businesscommunity.

“Your ability to create a safer,more tolerant home, communityor school depends on your deci-sion to filter the negative,destructive things you hear aboutyourself,” says Gudiño, a keynotespeaker at the National CrimePrevention Council YouthConference. “Choose instead toredefine your own path.Celebrate all that you are. Createan environment acceptable toyou. Or choose to withdraw andlet your unique differences behidden or obscured. The choice is yours.”

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“Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”

—Harry S. Truman

Julio Gudiño

Gardner Browne

Allstate Agent Gardner Brownebelieves the most dire disastersoften bring out the best in peo-ple. “It's great to see Americanscome together to respond whentragedy strikes,” he says. “Itmakes us better people.”

And Browne should know.Through his volunteer work with the American Red Cross,Browne’s been on hand to helpcommunities recover from someof the worst disasters: hurri-canes, floods, wildfires, earth-quakes and, most devastating,September 11. His focus: masscare.

“Mass care involves sustenanceand shelter for hundreds — some-times thousands,” he explains.

“Where will they sleep? Is thereenough food? Is the water safe to drink?”

Disaster relief efforts start at thelocal level and then, if necessary,escalate to state, regional andfederal levels. As the highestranking volunteer within Florida'sDivision of EmergencyManagement and a member of the Federal Emergency Management Agency’s RapidNeeds Assessment Team, Brownehas been involved at all levels.

When the Pentagon was attackedon September 11, he happenedto be only a few miles away. “Ittook a while for everyone to fig-ure out what was happening andfor the regional operations cen-ters to get up and running, so forabout five days I managed themass care relief efforts at FEMAheadquarters in Washington.”

Browne likens his volunteerefforts to what he does on the job as an Allstate agent in VeroBeach, Florida. “On a much moresimple level,” he says, “that'swhat we do at Allstate every day:help our customers plan for orrecover from emergencies, finan-cial or otherwise. I get a lot ofsatisfaction from knowing thatmy actions, whether on the sceneor behind it, help relieve thehardships of others.”

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Cathi Tresnicky

Cathi Tresnicky has been a suc-cessful businesswoman inMcLean, Virginia, for more than25 years. As an Allstate agent inthis prestigious community inFairfax County, there are fewpeople she does not know andfew local organizations she hasnot touched in her career.

Several years ago, Tresnickyjoined the Fairfax CountyBusiness Partnership Program,and became involved in a pro-gram with Pimmit High School.

“Pimmit is an alternative school,”Tresnicky explains. “It’s not yourstandard high school. Most peo-ple who go to Pimmit are older,speak English as a second lan-guage, work full time, are raisinga family or have some other issuethat makes going to a regularhigh school impossible.”

Understanding how tough it canbe for someone who is strugglingto get a job right out of school,Tresnicky applied her businessskills to the task, and participat-ed in mock job interviews withsoon-to-be Pimmit graduates.

“It was an incredible experience,”says Tresnicky. “The studentswere very prepared, dressed intheir best and ready to go. It wasgreat! I asked them questionsjust as I would ask any job appli-cant. Afterwards, we talkedthrough the process, the impor-tance of eye contact, correct pos-ture, dress code, how to preparefor interviews….”

Tresnicky was clearly moved bythe process, as were her stu-dents. “I realized the plight ofthese students,” she explains.

“They’ve never had anyone explainto them what to do, how to act,what to say. They just don’t haveanyone to ask.”

The school later awarded fivescholarships to students whoexcelled at the school, several ofwhom had been interviewed byTresnicky. “I felt so honored tohave been involved.”

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Helping Hands Reaching OutWell known as “The Good Hands People®,” our employeesare the heart of our business. That could probably be saidabout many employees in most businesses, but in ours, it’sespecially true; our employees have seen the faces andheard the voices of those who have suffered a setback orendured a tragedy.

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“Never doubt that a small group of thoughtful, com-mitted citizens can change the world. Indeed, it’s the only thing that ever has.”

—Margaret Mead

Every year, thousands of Allstateemployees in every corner of thecountry bring their hands andhearts to bear on matters that areimportant to them by rolling uptheir sleeves and working shoul-der to shoulder with communitypartners. They are not just intheir communities, they are partof their communities.

“Our employees and agents freely,generously donate their personaltime to lift the spirits and fortunesof people in their communities,”says Allstate CEO Liddy.

“You’ll find them working in soupkitchens, tutoring children,rehabbing parks and buildings,spending time with seniors,cleaning up vacant lots. I believeour Helping Hands Program hasset the standard in volunteerismfor corporate America.”

Pack a Lunch

For the past four years, employeesat Allstate corporate headquar-ters have been trading powerlunches for peanut butter andjelly lunches, taking the time tomentor grade school students atthe Euclid Elementary School inMt. Prospect, Illinois.

“The reason this program is sosuccessful is pretty simple,” saysSarah Abhalter, the school’ssocial worker. “The kids getsome extra positive attention andthey get that feeling of beingspecial. I’ve noticed that the kidswho have been involved in theprogram are more confident, getalong better with their peers, andspeak up more in class. It meansa lot to them that there is onespecial person that takes timeout to be with them and caresabout them.”

“It feels so good to know you’rehaving a positive influence onthese children,” says fourth-yearmentor George Onofrio, Allstateproduct manager. “There’s noth-ing nicer than hearing a youngchild ask if you’re going to beback to see them next week.”

“These folks participate becausethey want to make a difference insomeone’s life,” says JoAnnBenedeck, Allstate corporaterelations and member of theAllstate Mentoring Program.

“While they don’t expect any spe-cial recognition, they’ll tell youthat the recognition they receivefrom the children is the best kindanyone can receive.”

Fourth-year mentor and Allstateemployee Jill Hruska agrees.“The boy I mentor comes from abroken home,” says Hruska, “buthe is incredibly positive andalways lifts my day. There are somany kids out there hungry forthis kind of attention.”

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Rehabbing and Restocking

Helping families, like the EusebioCipriano family of Mesa, Arizona,is what Helping Hands is allabout. The Guatemalan immi-grants couldn’t believe their eyeswhen Annette Zahn, Allstateclaims process specialist, and 25other Helping Hands volunteersshowed up in April with paint,ladders and car trunks full of bedding, towels and kitchensupplies.

“I contacted an organizationcalled ‘Rebuilding Together’ andtold them we were looking tohelp a young family in need thatwas willing to invest some sweatequity of their own,” says JoeGacioch, Allstate field corporaterelations manager. “They sug-gested the Cipriano family.”

Now, thanks to these generousAllstaters, the Cipriano’s home ispainted inside and out, and theirfloors have new carpet and tile.Even the windows have been

spruced up: Diane Hallwas, sen-ior claim service adjuster, set upher sewing machine in the frontyard and made curtains while her16-year-old son, Dan, helpedpaint the back porch.

In addition to the full day of labor, employees collectedenough money to pay for house-hold bedding, bath accessories,kitchen supplies, a basketball forSerdy, age 9, and a doll forMadelin, age 7.

“This was such a rewarding expe-rience,” says Zahn. “You couldsee a big difference in the housewhen we left.”

“Nothing like this ever happens inGuatemala!” says CarmelinaCipriano. “Everyone did so muchfor us this year, I must be a vol-unteer on your house project tohelp someone else next year,”says Eusebio.

Corporate Giving Campaign For many years, Allstate employ-ees and agents have been sharingtheir good fortune with othersthrough the Allstate annualCorporate Giving Campaign.

“Our employees and agents knowthat they can make a difference inpeople’s lives, and they do everyyear – through their work, by vol-unteering in their communities,and through the annual GivingCampaign,” says Chairman Liddy.

Administered at every Allstateoffice, the Giving Campaign provides employees and agentswith an easy way to support non-profit organizations of theirchoosing. Allstate adds 15 per-cent, making every donation of$1.00 actually a donation of $1.15.

In each of the last three years,Allstate employees and agentshave donated an average of $4.9million to charities across thecountry, putting their money intothe hands of those who need it.

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Holiday Adopt-A-Family

Crowded cubicles are a commonsight in the Allstate Northbrookhome office during Novemberand December when the gen-erosity of Chicago-area employ-ees can literally be measured in truckloads — seven, to be precise: two at Thanksgiving and five at Christmas.

This Helping Hands Adopt-A-Family event is a perennialfavorite for home office staff. It’san opportunity for Allstateemployees to share in their goodfortune and give back to thoseless fortunate. Partnering withlocal charitable organizations,the Helping Hands Adopt-A-Family program provides needyfamilies with whatever they mightneed — whether it’s a turkey, atable or a toy for a child.

The process starts in Augustwhen employee volunteersrequest “wish lists” from needyfamilies through non-profit

organizations. With lists in hand,employees and departments signup to “adopt” families. In 2002,nearly 4,000 employees rallied tosupport 354 families representing2,000 people of all ages. Thanksto their generosity, families whomight otherwise have struggledto put food on the table enjoyedthe holidays more than theycould have imagined.

Aubrey Streb, an Allstate seniorservicing analyst, is moved everyyear when she delivers Adopt-A-Family gifts. “While I was drop-ping off some Thanksgivingitems, a family came in to pick uptheir care package. Their little girlwas so excited! I felt privileged tosee how much a person can betouched by an act of kindness.”

The day before Christmas, thou-sands of gifts – everything frombicycles to beds and ironingboards to basketballs – startedstreaming out to the loadingdock. One business unit went sofar as to decorate a child’s whole

bedroom. By day’s end, the load-ing dock resembled a retail store.

“The day before Christmas is myfavorite day of the year to cometo work,” says Mark Cleveland,senior operations manager, whohas orchestrated distributing thedonations for five years. “It’s theclosest I’ll ever come to beingSanta Claus.”

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“The success of any businessrests on the shoulders of its peo-ple,” says Joan Crockett, seniorvice president, Human Resources.

“Allstate offers an inclusive, highperformance environment withcompetitive pay and benefits andopportunities for developmentand quality leadership – alldesigned to attract the brightestpeople and retain and motivateour skilled workforce.”

The company’s diversity andwork/life programs include equalopportunity for all employees;work/life and wellness initiatives;diversity education, recruitment,career advancement and devel-opmental leadership; accounta-bility measurement; mentoringprograms; support networks; andcommunity involvement.

While embracing diversity is theright thing to do, it also makesgood business sense. “We workhard to build an environment thatfosters inclusion, work/life bal-ance and creativity,” saysChairman Liddy. “We understandthat a diverse workforce is key tosatisfying the needs of a diversemarketplace.”

Allstate’s commitment to diversi-ty has earned high marks (seepage 38). For example,DiversityInc. placed Allstateamong its list of Top 50Companies for Diversity. “Thisrecognition is a particularly sig-nificant indicator of a company’scommitment to diversity in theworkplace,” says Luke Visconti,DiversityInc.

“Our competitive advantage is ourpeople, and our people arediverse,” says Liddy. “That diver-sity is a strength and a strategythat will continue to allow us torealize our growth goals. Nothingless than an integrated diversitystrategy will allow us to exceldomestically and internationally.”

Employee and Supplier DiversityAs a company with a diverse population of employees,agents and customers, Allstate embraces diversity ineverything we do – not only the customers we serve andthe communities in which we invest, but also the peoplewe hire and the businesses we use as suppliers. It’s a testament to the company’s corporate citizenship and asound business strategy.

“Just as we welcome a worldof diversity, so we glory in an America of diversity — anAmerica all the richer for the many different and distinctive strands of which it is woven.”

—Hubert H. Humphrey

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Our Diverse Workforce

Total Total Total African Total Total Asian/ Total Native TotalNumber Female American Hispanic Pacific Islander American Minority

Job Category by Category Percent Percent Percent Percent Percent Percent

Officials & Managers 5,788 41.8 11.4 4.9 3.3 0.3 19.9Professionals 18,117 49.1 12.9 6.1 5.0 0.4 24.4Technicians 32 9.4 0 6.3 0 0 6.3Sales Workers 362 22.1 13.8 6.4 5.2 1.1 26.5Office Workers 13,178 83.9 24.5 10.1 3.1 0.4 38.1Craft Workers 99 8.1 11.1 18.2 4.0 0 33.3

Total Workforce 37,576 59.8 16.7 7.3 4.1 0.4 28.5

Data as of 12/21/03 (Employee counts only. Excludes Exclusive Agencies, Exclusive Financial Specialists and Independent Agencies.)

Shown are minority and female employee percentagesof the company’s total U.S. workforce.

Shown are awards Allstate has wonfor its diversity efforts.

— Diversity Elite, America’s Best 50Companies for Minorities: Fortunemagazine (award winner 1998-2002)— Most Admired Property andCasualty Company: Fortune magazine(2003)— 100 Best Companies for WorkingMothers: Working Mother magazine(1990, 1992-2003)

— Epsilon Award: Black DataProcessors Association (2003)— Top Company for AfricanAmericans: DiversityInc (2003)— Top 50 Companies for Diversity:DiversityInc (2002-2003)— One of the Best Places to Work for Latinos: Hispanic magazine (1996-2003)— 50 Best Companies for Latinas toWork: Latina Style magazine (1998-2003)

— Great Places for African-AmericanWomen to Work: Essence magazine(2003)— Top 10 Companies for MBAExecutives: Minority MBA magazine(1998-2002)— Top 50 Companies for People withDisabilities: Careers & The disAbled(1997, 2000-2002)

Shown are awards Allstate has wonfor its diversity efforts.

— Diversity Elite, America’s Best 50Companies for Minorities: Fortunemagazine (award winner 1998-2002)— Most Admired Property andCasualty Company: Fortune magazine(2003)— 100 Best Companies for WorkingMothers: Working Mother magazine(1990, 1992-2003)

— Epsilon Award: Black DataProcessors Association (2003)— Top Company for AfricanAmericans: DiversityInc (2003)— Top 50 Companies for Diversity:DiversityInc (2002-2003)— One of the Best Places to Work for Latinos: Hispanic magazine (1996-2003)— 50 Best Companies for Latinas toWork: Latina Style magazine (1998-2003)

— Great Places for African-AmericanWomen to Work: Essence magazine(2003)— Top 10 Companies for MBAExecutives: Minority MBA magazine(1998-2002)— Top 50 Companies for People withDisabilities: Careers & The disAbled(1997, 2000-2002)

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Supplier Diversity

As a large, national company,Allstate relies on the expertiseand services of many businesspartners and suppliers. Today,minority- and female-ownedbusinesses are growing signifi-cantly faster than non-minoritybusinesses. Through our SupplierDiversity Program, Allstate isdetermined not only to strength-en its current partnerships withthese critical suppliers, but alsoto build new ones.

Fundamental goals of ourSupplier Diversity Program arethe economic empowerment ofminority communities, honoringour pledge to provide qualityproducts and services to our cus-tomers and delivering outstand-ing value to our shareholders.

“Allstate has built solid relation-ships with minority- and female-owned businesses over manyyears,” says Jim Osborne, vicepresident of Allstate ProcurementGovernance. “It’s not only theright thing to do, it’s also thesmart thing to do.”

Today, minorities represent 28percent of the U.S. population,but minority businesses repre-sent only 15 percent of totalbusinesses, 3 percent of grossreceipts, and 4 percent of totalcorporate purchases. Clearly,there is room for improvement.And while we’re doing our part,we feel that we can do more.

To that end, Allstate began 2002by strengthening its processes totap into diversity suppliers moreoften and more wisely. Today,Allstate’s revitalized SupplierDiversity Program offers minority-and female-owned enterprisestheir best opportunities yet tojoin forces with Allstate.

— Allstate joined two majortrade groups — the NationalMinority Supplier DevelopmentCouncil (NMSDC) and theWomen’s Business EnterpriseNational Council (WBENC) —which offer huge databases onminority- and female-owned sup-pliers to increase our exposure tominority- and female-ownedbusinesses.

— Allstate participated inNMSDC’s financial servicesroundtable, networking withother large corporations to iden-tify and share best practices indiversity purchasing.

— Allstate analyzed its existingsupplier base to identify gaps indiversity spending by category.

In July 2003, Saludos Hispanoshonored Allstate with its Leaderof Distinction award, identifyingthe company as one of America’stop organizations for its supplierdiversity program for Hispanic-owned businesses.

“When I attend minority andwomen supplier advocate confer-ences, people often approach meto say how much they appreciatethe opportunity to work withAllstate,” says Kathy Gilligan,supplier diversity manager,Allstate ProcurementGovernance. “Working withminority- and women-ownedbusinesses is smart business —it’s good for the community, it’shealthy for the economy and it’sgood for our business.”

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The Allstate Corporation Board of Directors

F. Duane AckermanChairman, President, and Chief Executive OfficerBellSouth Corporation

James G. AndressRetired Chairman and Chief Executive OfficerWarner Chilcott PLC

Edward A. BrennanRetired Chairman, President and Chief Executive OfficerSears, Roebuck and Co.

W. James FarrellChairman and Chief Executive OfficerIllinois Tool Works Inc.

Jack M. GreenbergRetired Chairman and Chief Executive OfficerMcDonald’s Corporation

Ronald T. LeMayRetired President and Chief Operating OfficerSprint Corporation

Edward M. LiddyChairman, President and Chief Executive OfficerThe Allstate Corporation

Michael A. MilesSpecial Limited PartnerForstmann Little & Co.

J. Christopher ReyesChairmanReyes Holdings LLC

H. John Riley Jr.Chairman, President and Chief Executive OfficerCooper Industries Ltd.

Joshua I. SmithChairman and Managing PartnerThe Coaching Group

Judith A. SprieserChief Executive OfficerTransora

Mary Alice TaylorIndependent Business Executive

“The rendering of useful service is the common duty of mankind.”

—John D. Rockefeller, Jr.