On Oct. 23, 2008, Standard&Poor's Ratings Services revised its outlook on Allstate Corp. (Allstate), Allstate Insurance Co. (AIC) and its property/casualty affiliates (collectively, Allstate Protection), and Allstate Life Insurance Co. and its life insurance affiliates (collectively Allstate Financial) to negative from stable. At the same time, Standard&Poor's affirmed its 'A+' counterparty credit rating on Allstate and its 'AA' counterparty credit and financial strength ratings on Allstate Protection and Allstate Financial. The negative outlook reflects the significant deterioration in capital adequacy to the strong level from very strong. This resulted from a combination of sizable catastrophe losses and realized investment losses (each of which were heightened in the third quarter), investment losses at Allstate Financial, and a
