Allstate 2011 Annual Report Download - page 146

The Property-Liability investment portfolio increased to $35.05 billion as of December 31, 2010, from $34.53 billion
as of December 31, 2009, primarily due to higher valuations for equity and fixed income securities and positive operating
cash flows, partially offset by dividends paid by Allstate Insurance Company (‘‘AIC’’) to its parent, The Allstate
Corporation.
The Allstate Financial investment portfolio decreased to $61.58 billion as of December 31, 2010, from $62.22 billion
as of December 31, 2009, primarily due to net reductions in contractholder obligations of $4.39 billion, partially offset by
higher valuations for fixed income securities.
The Corporate and Other investment portfolio increased to $3.85 billion as of December 31, 2010, from $3.09 billion
as of December 31, 2009, primarily due to dividends of $1.30 billion paid by AIC to the Corporation and higher valuations
for fixed income securities, partially offset by dividends paid to shareholders, interest paid on debt and share
repurchases.
Fixed income securities by type are listed in the table below.
($ in millions) Fair value as of Percent to Fair value as of Percent to
December 31, total December 31, total
2010 investments 2009 investments
U.S. government and agencies $ 8,596 8.6% $ 7,536 7.6%
Municipal 15,934 15.9 21,280 21.3
Corporate 37,655 37.5 33,115 33.2
Foreign government 3,158 3.1 3,197 3.2
Residential mortgage-backed securities
(‘‘RMBS’’) 7,993 7.9 7,987 8.0
Commercial mortgage-backed securities
(‘‘CMBS’’) 1,994 2.0 2,586 2.6
Asset-backed securities (‘‘ABS’’) 4,244 4.2 3,026 3.0
Redeemable preferred stock 38 — 39 —
Total fixed income securities $ 79,612 79.2% $ 78,766 78.9%
As of December 31, 2010, 91.6% of the consolidated fixed income securities portfolio was rated investment grade,
which is defined as a security having a rating of Aaa, Aa, A or Baa from Moody’s, a rating of AAA, AA, A or BBB from
S&P, Fitch, Dominion, or Realpoint, a rating of aaa, aa, a, or bbb from A.M. Best, or a comparable internal rating if an
externally provided rating is not available.
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