Allstate Provides $60 Million Rate Refund to Texas Homeowners.

IRVING, Texas -- Allstate Texas Lloyds, an affiliate of The Allstate Corporation (NYSE:ALL), will issue refunds of 8.75 percent of the premium paid by its Texas home insurance customers for policies with effective dates from Sept. 7, 2003, through Sept. 6, 2004. This one-time refund is part of an agreement between the Texas Department of Insurance (TDI) and Allstate. The impact of this refund will be a return of approximately $60 million to nearly 686,000 Allstate customers in Texas.

Under the agreement, Allstate already reduced its Texas homeowner rates by 10.1 percent in 2003.

"During a turbulent period, Allstate has stayed in the Texas home insurance market, weathered the storm and emerged as a leading provider of insurance protection," said Gary Briggs, Allstate Field Vice President. "We've taken a stand in Texas by supporting our customers, creating new insurance choices and taking a disciplined approach to pricing and underwriting."

For all eligible Allstate homeowner policyholders, the 8.75 percent refund, along with interest, will be issued as a credit on their next renewal statement. For those customers whose home is no longer insured with Allstate, a refund check will be issued.

Under SB 14, all home insurers in Texas were required to file their rates with the state. Allstate worked in cooperation with the TDI and agreed to rate level reductions in 2003 and the framework for a possible refund, giving the Texas market a vote of confidence that claims costs would stabilize and the market would become increasingly competitive.

Allstate, the state's second largest insurer of homes, will continue to work with the TDI and other interested parties to encourage a healthy insurance environment for Texans.

"Allstate supports efforts to modernize the regulatory system to provide the benefits of more competition, choice, innovation and efficiency to consumers," said Justin Schmitt, Allstate Corporate Relations Manager. "We're committed to making our knowledge, experience and resources available to help our customers feel better protected today, and better prepared for tomorrow."

The Allstate Corporation (NYSE:ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate helps individuals in more than 16 million households protect what they have today and better prepare for tomorrow through more than 12,900 exclusive agencies and financial specialists in the U.S. and Canada. Customers can access Allstate products and services through Allstate agencies, or in select states at www.allstate.com and 1-800 Allstate(R). Encompass(SM) and Deerbrook(R) Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life insurance, annuity, retirement, banking and investment products through distribution channels that include Allstate agencies, independent agencies, worksite, financial institutions and broker-dealers.