Best Insurance Stocks To Own For 2014

American International Group (NYSE: AIG  ) has slowly been gaining steam among Wall Street analysts and hedge funds, but last week the stock jumped 5.85%. Since the company has yet to announce its first-quarter earnings, there is little that could propel the stock to such heights in a short span of time. The main culprit behind last week's gains? Dividend speculation.

In this video, Motley Fool contributor Jessica Alling discusses the basis of the speculation, how AIG's competitor MetLife (NYSE: MET  ) comes into play, and what investors should expect.

At the end of last year, AIG was the favorite stock among hedge fund managers. Have they identified the next big multibagger, or are the risks facing the insurance giant still too great? In The Motley Fool's premium report on AIG, Financials Bureau Chief Matt Koppenheffer breaks down the key issues that you need to know about if you want to successfully invest in this stock. Simply click here now to claim your copy, and you'll also receive a full year of key updates and expert analysis as news continues to develop.

Hot Paper Companies For 2015: Markel Corp (MKL)

Markel Corporation is a financial holding company serving a range of markets. The Company markets and underwrites specialty insurance products. The Company operates in three segments: the Excess and Surplus Lines, the Specialty Admitted, and the London markets. It also owns interests in industrial and service businesses, which operate outside of the specialty insurance marketplace. On January 1, 2012, the Company acquired Thompson Insurance Enterprises, LLC (THOMCO). On July 13, 2011, the Company acquired PartnerMD, LLC. On October 19, 2011, the Company acquired an 83% interest in WI Holdings Inc. (Weldship). In April 2012, its subsidiary, Markel Ventures, acquired a majority interest in Havco WP LLC. In July 2012, Markel Corporation announced that Ellicott Dredge Enterprises, LLC, through its subsidiary Rohr International Dredge Holdings, Inc., acquired IDRECO GmbH. In January 2013, OneBeacon Insurance Group Ltd sold Essentia Insurance Company to the Company. In May 2013, it announced that it has completed its acquisition of Alterra Capital Holdings Ltd.

Excess and Surplus Lines Segment

Business in the Excess and Surplus Lines segment is written through two distribution channels, professional surplus lines general agents who have limited quoting and binding authority and wholesale brokers. The business produced by this segment is written on a surplus lines basis through either Essex Insurance Company or Evanston Insurance Company. During the year ended December 31, 2011, in the Excess and Surplus Lines segment, it wrote business through regional underwriting offices, which include Markel Northeast (Red Bank, NJ), Markel Southeast (Glen Allen, VA), Markel Midwest (Deerfield, IL), Markel Mid South (Plano, TX) and Markel West (Woodland Hills, CA and Scottsdale, AZ). Product offerings within the Excess and Surplus Lines segment fall within the product groupings, which include Property and Casualty, Professional Liability, and Other Product Lines. Property coverages consist of f! ire, allied lines (including windstorm, hail and water damage) and other specialized property coverages, including catastrophe-exposed property risks, such as earthquake and wind on both a primary and excess basis. Its property risks range from small, single-location accounts to multi-state, multi-location accounts. Casualty product offerings include a range of liability coverages targeting apartments and office buildings, retail stores, contractors and recreational and hospitality businesses. It also offers products liability coverages on either an occurrence or claims-made basis to manufacturers, distributors, importers and re-packagers of manufactured products.

Professional liability coverages include solutions for specialized professions, including architects and engineers, lawyers, agents and brokers, service technicians and computer consultants. It offers claims-made medical malpractice coverage for doctors, dentists and podiatrists; claims-made professional liability coverage to individual healthcare providers, such as therapists, pharmacists, physician assistants and nurse anesthetists, and coverages for medical facilities and other allied healthcare risks, such as clinics, laboratories, medical spas, home health agencies, small hospitals, pharmacies and nursing homes. This product line also includes for-profit and not-for profit management liability coverage, which can be bundled or written mono-line and include employment practices liability, directors��and officers��liability and fiduciary liability coverages. In addition, it offers a data privacy and security product, which provides coverage for data breach and privacy liability, data breach loss to insureds and electronic media coverage.

Other product lines within the Excess and Surplus Lines segment include excess and umbrella products, which provide coverage over approved underlying insurance carriers on either an occurrence or claims-made basis; environmental products, which include environmental consultants! ��profe! ssional liability, contractors��pollution liability and site-specific environmental impairment liability coverages; transportation-related products, which provide auto physical damage coverage for automobiles, as well as all types of specialty commercial vehicles, dealers��open lot and garagekeeper legal liability coverages, vehicular liability and physical damage coverages for local and intermediate haul commercial trucks and liability coverage to operators of small to medium-sized owned and operated taxicab fleets, non-emergency ambulances and multi-line specialty products designed for the characteristics of the garage industry; inland marine products, which provide a range of specialty coverages for risks, such as motor truck cargo coverage for damage to third party cargo while in transit, warehouseman�� legal liability coverage for damage to third party goods in storage, contractors��equipment coverage for first party property damage and builder�� risk coverage; ocean marine products, which provide general liability, professional liability, property and cargo coverages for marine artisan contractors, boat dealers and marina owners, including hull physical damage, protection and indemnity and third party property coverages for ocean cargo; casualty facultative reinsurance written for individual casualty risks focusing on general liability, products liability, automobile liability and certain classes of professional liability and targeting classes, which include general liability risks; railroad-related products, which provide first and third party coverages for short-line and regional railroads, scenic and tourist railroads, commuter and light rail trains and railroad equipment, and public entity insurance and reinsurance programs, which provide coverage for government entities including counties, municipalities, schools and community colleges.

Specialty Admitted Segment

The business in the Specialty Admitted segment is written by retail insurance agents who have v! ery limit! ed underwriting authority. Products and programs are marketed directly to consumers or distributed through wholesale producers. Personal lines coverages included in this segment are marketed directly to the consumer using direct mail, Internet and telephone promotions, as well as relationships with various motorcycle and boat manufacturers, dealers and associations. The business produced by this segment is written on an admitted basis either through Markel Insurance Company (MIC), Markel American Insurance Company (MAIC) and FirstComp Insurance Company (FCIC).

The Markel Specialty unit focuses on providing total insurance programs for businesses engaged in specialized activities. The Markel Specialty unit is organized into product areas, which concentrate on particular markets and customer groups, including youth and recreation oriented organizations, social service organizations, amateur sports organizations and horse and farm operations. The Markel American Specialty Personal and Commercial Lines unit offers its insurance products focuses its underwriting on marine, recreational vehicle, property and other personal and commercial line coverages. The FirstComp unit provides workers��compensation insurance and related services, to small businesses. The FirstComp unit distributes its products through independent insurance agencies.

Product offerings within the Specialty Admitted segment fall within product groupings, which include Workers��Compensation, Property and Casualty, Personal Lines, Accident and Health, and Other Product Lines. Workers��compensation products provide wage replacement and medical benefits to employees injured in the course of employment and target main-street, service and artisan contractor businesses, retail stores and restaurants. Property and casualty products included in this segment are offered on a monoline or package basis and target commercial markets and customer groups. Targeted groups include youth and recreation oriented organizations,! social s! ervice organizations, museums and historic homes, performing arts organizations, bed and breakfast inns, outfitters and guides, hunting and fishing lodges, dude ranches and rod and gun clubs. Personal lines products provide first and third party coverages for a range of personal watercrafts, including older boats, boats and yachts, as well as for recreational vehicles, including motorcycles, snowmobiles and all terrain vehicles (ATVs). In addition, property coverages are offered for mobile homes, dwellings and homeowners that do not qualify for standard homeowner�� coverage. Other products offered include special event protection, supplemental natural disaster coverage, renters��protection coverage, excess flood coverage and collector vehicle coverage. Accident and health products offer liability and accident insurance for amateur sports organizations, accident and medical insurance for academic institutions, monoline accident and medical coverage for various markets, short-term medical insurance, pet health insurance, stop-loss insurance for self-insured medical plans and medical excess reinsurance coverage.

Other product lines within the Specialty Admitted segment include coverages for equine-related risks, such as horse mortality, theft, infertility, transit and specified perils, as well as property and liability coverages for farms and boarding, breeding and training facilities; first and third party coverages for auto repair garages, gas stations and convenience stores and used car dealers; general agent programs, which use managing general agents to offer single source admitted and non-admitted programs for a specific class or line of business; first and third party coverages for small fishing ventures, charters, utility boats and boat rentals, and professional liability coverages, which it designs and administers on behalf of other insurance carriers and ultimately assume on a reinsurance basis.

London Insurance Market Segment

This segment is consisted o! f Markel ! International. Markel International writes specialty property, casualty, professional liability, equine, marine, energy and trade credit insurance on a direct and reinsurance basis. Business is written worldwide through either Markel International Insurance Company Limited (MIICL) or Markel Syndicate 3000 with approximately 15% of writings coming from the United States. Product offerings within the London Insurance Market segment fall within the product groupings, which include Marine and Energy, Professional and General Liability, Reinsurance, Property, and Other Product Lines.

Marine and energy products include a portfolio of coverages for cargo, energy, hull, liability, war, terrorism and specie risks. The cargo account is an international transit-based book covering a range of cargo. Energy coverage includes all aspects of oil and gas activities. The hull account covers physical damage to ocean-going tonnage, yachts and mortgagee�� interest. Liability coverage provides for a range of energy liabilities, as well as marine exposures, including charterers, terminal operators and ship repairers. The war account covers the hulls of ships and aircraft, and other related interests, against war and associated perils. Terrorism coverage provides for property damage and business interruption related to political violence, including war and civil war. The specie account includes coverage for fine art on exhibition and in private collections, securities, bullion, precious metals, cash in transit and jewelry.

Professional and general liability products include professional indemnity, directors��and officers��liability, intellectual property, some defense costs, incidental commercial crime, general and products liability coverages targeting consultants, construction professionals, financial service professionals, professional practices, social welfare organizations and medical products. Professional and general liability products are written on a global basis. Reinsurance products ! include p! roperty and casualty treaty reinsurance. Property treaty products are offered on an excess of loss and proportional basis for per risk and catastrophe exposures. A portion of the excess of loss catastrophe and per risk property treaty business comes from the United States with the remainder coming from international property treaties. Casualty treaty reinsurance is offered on an excess of loss basis and targets specialist writers of motor products in the United Kingdom and Europe. Excess of loss casualty treaty reinsurance also is offered for select writers of employers��and products liability coverages.

Property products target a range of insureds, providing coverage ranging from fire to catastrophe perils, such as earthquake and windstorm. Business is written either in the open market or on a delegated authority basis for direct and facultative risks. Open market business is written mainly on a global basis by its underwriters to London brokers, with each risk being considered on its own merits. The Company provides property coverage for small to medium-sized commercial risks on both a stand-alone and package basis through its branch offices. Other product lines within the London Insurance Market segment include crime coverage targeting financial institutions and providing protection for bankers��blanket bond, computer crime and commercial fidelity; contingency coverage, including event cancellation, non-appearance and prize indemnity; accident and health coverage for affinity groups and schemes, risks accounts and sports groups; coverage for equine-related risks, such as horse mortality, theft, infertility, transit and specified perils; specialty coverages include mortality risks for farms, zoos, animal theme parks and safari parks; short-term trade credit coverage for commercial risks, including insolvency and protracted default, as well as political risks coverage in conjunction with commercial risks for currency inconvertibility, government action, import/export license cancellati! on, publi! c buyer default and war, and products liability, excess and umbrella and environmental liability coverages.

The Company purchases reinsurance. It purchases catastrophe reinsurance coverage for its catastrophe-exposed policies. In addition, certain foreign reinsurers for its United States insurance operations must provide collateral equal to 100% of recoverable, with the exception of reinsurers who have been granted authorized status by an insurance company�� state of domicile. When appropriate, it pursues reinsurance commutations, which involve the termination of ceded reinsurance contracts. Reinsurance treaties are purchased on an annual basis.

Advisors' Opinion:

• [By Michael Hooper]

  When compared with similar companies, Berkshire Hathaway carries a premium over Markel� (NYSE: MKL  ) , valued at 1.15 times book value and a 20 forward P/E ratio; and Leucadia National� (NYSE: LUK  ) , valued at 1.10 times book value and a 7.16 trailing P/E.�

• [By Matt Koppenheffer]

  When investors are looking for a steady-eddy blue chip to consistently compound over the long run, many default to Berkshire Hathaway (NYSE: BRK-A  ) . The industry's worst-kept investing secret may not be the best buy in this space though. That award could go to Markel (NYSE: MKL  ) a company many have dubbed a "baby Berkshire." Though it comes with slightly more risk, there is also the potential for a lot more upside.

• [By John Reeves]

  In the following video, Motley Fool contributor John Reeves takes investors through three stocks he just added to his own portfolio. He discusses the long-term healthy eating trend that led him to Whole Foods (NASDAQ: WFM  ) , how LinkedIn (NYSE: LNKD  ) is completely transforming the job-search market, and how the specialty insurer Markel (NYSE: MKL  ) , and its similar business model to Berkshire Hathaway (NYSE: BRK-A  ) make it an attractive buy today.

• [By Brendan Mathews]

  It's a great idea to get children interested in investing early, and buying some stocks for them is a great way to accomplish that. I'd recommend using a very long-term buy-and-hold strategy focused on high-quality, sustainable businesses. I'd forgo dividends and focus on long-term appreciation (just my personal opinion). Stocks that I'd recommend for this strategy include Amazon.com (NASDAQ: AMZN  ) , Berkshire Hathaway (NYSE: BRK-B  ) , CarMax (NYSE: KMX  ) , and Markel (NYSE: MKL  ) . All are great companies that I'd be happy to hold for a decade.

Best Insurance Stocks To Own For 2014: Muenchener Rueckversicherungs Gesellschaft AG in Muenchen (MUV2)

Muenchener Rueckversicherungs Gesellschaft AG in Muenchen is a Germany-based holding company engaged in reinsurance and insurance business fields. The Company diversifies its operations into reinsurance, primary insurance, Munich Health and Asset management. The Reinsurance business comprises five divisions: Life; Europe and Latin America; Germany, Asia Pacific and Africa; Special and Financial Risks, and Global Clients and North America. The business covers a range of products from traditional reinsurance products to solutions for risk assumption. The Company's primary insurance activities are combined into the ERGO Insurance Group (ERGO) and offers direct insurance, life, property-casualty, health, legal expenses and travel insurance products. It covers the Company's international health reinsurance business and health primary insurance outside Germany and engages the risk management services. The Asset management business handles the investment activities of Munich Re and ERGO. Advisors' Opinion:

• [By Jonathan Morgan]

  Munich Re (MUV2), the world�� biggest reinsurer, dropped 4.9 percent to 145.25 euros after it said second-quarter profit fell 35 percent, missing analysts��estimates, as claims arising from natural disasters rose. Net income dropped to 529 million euros from 808 million euros a year earlier, trailing the 557.1 million-euro average estimate of analysts surveyed by Bloomberg.

Best Insurance Stocks To Own For 2014: MBIA Inc (MBI)

MBIA Inc. (MBIA), incorporated on November 12, 1986, together with its consolidated subsidiaries, operates the financial guarantee insurance businesses in the industry and is a provider of asset management advisory services. These activities are managed through three business segments: United States public finance insurance, structured finance and international insurance, and advisory services. The Company�� United States public finance insurance business is operated through National Public Finance Guarantee Corporation and its subsidiaries (National), its structured finance and international insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (MBIA Corp.), and its asset management advisory services business is primarily operated through Cutwater Holdings, LLC and its subsidiaries (Cutwater). It also manages certain business activities through its corporate, asset/liability products, and conduit segments. The corporate segment includes revenues and expenses that arise from general corporate activities. Funding programs managed through the asset/liability products and conduit segments are in wind-down.

MBIA Corp. owns MBIA UK Insurance Limited (MBIA UK), a financial guarantee insurance company that is regulated and supervised by the Financial Services Authority (FSA) in the United Kingdom and is authorized to carry out insurance business in the United Kingdom and in the European Economic Area on a cross border services basis. Its financial guarantee insurance generally provides investors with an unconditional and irrevocable guarantee of the payment of the principal, interest or other amounts owing on insured obligations when due or, in the event that the Company has the right at its discretion to accelerate insured obligations upon default or otherwise, upon its election to accelerate. The Company conducts its financial guarantee business, as well as related reinsurance, advisory and portfolio services, through its subsidiaries National Publi! c Finance Guarantee Corporation (National), its United States (United States) public finance-only financial guarantee company, and MBIA Insurance Corporation and its subsidiaries (MBIA Corp.), which write global structured finance and non-United States public finance financial guarantee insurance.

Insurance operations

The Company�� United States public finance insurance business is conducted through National, and its structured finance and international insurance operations are conducted through MBIA Corp. and its subsidiaries. It also issue insurance policies to guarantee the payment of principal and interest on municipal obligations being traded in the secondary market upon the request of a broker or an existing holder of uninsured bonds, where premium is generally paid by the owner of the obligation. In addition, the Company has provided financial guarantees to debt service reserve funds. The primary risk in its insurance operations is that of adverse credit performance in the insured portfolio. It seeks to maintain a diversified insured portfolio and have designed each insured portfolio with the aim of managing and diversifying risk based on a range of criteria, including revenue source, issue size, type of asset, industry concentrations, type of bond and geographic area.

Through the Company�� reinsurance of United States public finance financial guarantees from MBIA Corp. and Financial Guaranty Insurance Company (FGIC), National�� insurance portfolio consists of municipal bonds, including tax-exempt and taxable indebtedness of United States political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by ! taxes, as! sessments, user fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams. As of December 31, 2012, MBIA Corp. had 899 policies outstanding in its insured portfolio. In addition, MBIA Corp. had 199 insurance policies outstanding relating to asset/liability products liabilities issued by MBIA Inc. and its subsidiaries.

Advisory Services

In the Company�� asset management advisory services business its registered investment advisors provide fixed-income asset management services for third parties and the investment portfolios of the Company and its affiliates (including the wind-down businesses) on a fee-for-service basis. Its advisory services are offered in two product lines, traditional and structured. Within the traditional product line, Cutwater offers cash management, customized asset management, discretionary asset management and fund accounting services to governments, insurance companies (including the Company�� insurance subsidiaries), corporations, pension funds, unions, endowments, foundations and investment companies in both pooled and separate account formats. These services are offered through registered investment advisers, and Cutwater receives asset management and administrative fees as compensation. Within the structured product line, Cutwater manages asset/liability programs and conduits (the wind-down businesses), Collateralized debt obligations (CDOs) and other funding vehicles for banks, insurance companies, program trustees and investment companies, and it earns base and performance fees for its services. Cutwater�� advisory services are offered through two principal operating subsidiaries: Cutwater Asset Management Corp. (Cutwater-AMC), an SEC-registered investment adviser and Financial Industry Regulatory Authority (FINRA) member firm, and Cutwater Investor Services Corp. (Cutwater-ISC), an SEC-registered investment adviser.

Wind-down Business

The asset/liability produc! ts busine! ss historically raised funds for investment through two sources, such as issuance of customized investment agreements by the Company and one of its subsidiaries for bond proceeds and other funds, and issuance of medium-term notes (MTNs) with varying maturities issued by its subsidiary MBIA Global Funding, LLC (GFL). Each of these products is guaranteed by MBIA Corp. In addition, GFL would lend the proceeds of its GFL MTN issuances to MBIA Inc. (GFL Loans). The Company primarily purchased domestic securities and lent a portion of the proceeds from investment agreements and GFL MTNs to its subsidiary Euro Asset Acquisition Limited, which primarily purchased foreign assets as permitted under the Company�� investment guidelines. The Company�� conduit segment is principally operated through Meridian Funding Company, LLC (Meridian) and, formerly, Triple-A One Funding Corporation (Triple-A One). The conduits were used by banks and other financial institutions to raise funds for their customers in the capital markets. During 2012, Triple-A One was liquated. The conduits provided funding for multiple customers through special purpose vehicles that issued commercial paper and MTNs.

Advisors' Opinion:

• [By Amanda Alix]

  Bank of America's (NYSE: BAC  ) stock is taking a beating this morning, in a startling turnaround from last week's rally that buoyed the share price above $13, where it hovered all weekend. Unfortunately, it looks as if the great news of the bank's settlement with monoline insurer MBIA (NYSE: MBI  ) , which brought an unpleasant legal skirmish to an end, has worn off with the advent of Monday morning.

• [By Amanda Alix]

  But, it probably won't be that easy. The question of successor liability by B of A for Countrywide has come up before, in the recently settled battle between the bank and monoline insurer MBIA (NYSE: MBI  ) . Earlier this year, the insurer filed with the New York courts a very long and colorful presentation in its bid to win summary judgment on this very issue. Despite its effort, however, New York State Supreme Court Justice Eileen Bransten wouldn't rule either for or against�the question, citing disputed facts that needed more scrutiny. But, in a blow to Bank of America, she did decide that the successor liability issue should be heard in New York, rather than Delaware, which was B of A's preferred venue.

Best Insurance Stocks To Own For 2014: ING Groep NV (INGA)

ING Groep N.V. (ING) is a global financial institution offering banking, investments, life insurance and retirement services to meet the needs of the customers. The Company�� segments include banking and insurance. Banking segment includes retail Netherlands, retail Belgium, ING direct, retail central Europe (CE), retail Asia, commercial banking (excluding real estate), ING real estate and corporate line banking. Insurance segment includes insurance Benelux, insurance central and rest of Europe (CRE), insurance United States (US), Insurance US closed block VA, insurance Asia/Pacific, ING investment management (IM) and corporate line insurance. In November 2013, the Company completed the sale of ING Hipotecaria to Banco Santander (Mexico), S.A. In December 2013, the Company completed the sale of its 33.3% interest in China Merchants Fund to its joint venture partners China Merchants Bank Co Ltd and China Merchants Securities Co Ltd, and divested ING Life Korea to MBK Partners. Advisors' Opinion:

• [By Sofia Horta e Costa]

  ING (INGA), which received a 10 billion-euro government bailout in 2008, gained 5.1 percent to 8.26 euros. Underlying pretax profit for the banking unit rose 14 percent to 1.15 billion euros in the second quarter as the interest margin improved and cost cuts paid off, the biggest Dutch financial-services company said.

Best Insurance Stocks To Own For 2014: Allstate Corp (ALS)

The Allstate Corporation (Allstate), November 5, 1992, is a holding company for Allstate Insurance Company. The Company�� business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their affiliates. It is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Allstate's primary business is the sale of private passenger auto and homeowners insurance. The Company also sells several other personal property and casualty insurance products, select commercial property and casualty coverages, life insurance, annuities, voluntary accident and health insurance and funding agreements. Allstate primarily distributes its products through exclusive agencies, financial specialists, independent agencies, call centers and the Internet. It conducts its business primarily in the United States. Allstate has four business segments: Allstate Protection, Allstate Financial, Discontinued Lines and Coverages and Corporate and Other. The Company is a personal lines insurer in the United States. Customers can access Allstate products and services, such as auto insurance and homeowners insurance through nearly 12,000 exclusive Allstate agencies and financial representatives in the United States and Canada. In October 2011, the Company acquired Esurance and Answer Financial from White Mountains Insurance Group.

ALLSTATE PROTECTION SEGMENT

In this segment, the Company principally sells private passenger auto and homeowners insurance through agencies and directly through call centers and the Internet. These products are marketed under the Allstate, Encompass and Esurance brand names. The Allstate Protection segment also includes a separate organization called Emerging Businesses, which comprises Business Insurance (commercial products for small business owners), Consumer Household (specialty products including motorcycle, boat, renters and condominium insurance policies), A! llstate Dealer Services (insurance and non-insurance products sold primarily to auto dealers), Allstate Roadside Services (retail and wholesale roadside assistance products) and Ivantage (insurance agency). The Company also participates in the involuntary or shared private passenger auto insurance business in order to maintain its licenses to do business in many states. In some states, Allstate exclusive agencies offer non-proprietary property insurance products. Allstate brand auto and homeowners insurance products are sold primarily through Allstate exclusive agencies and serve customers who prefer local personal advice and service and are brand-sensitive. In most states, customers can also purchase certain Allstate brand personal insurance products, and obtain service, directly through call centers and the Internet.

During the year ended December 31, 2011, total Allstate Protection premiums written were $25.98 billion. Its broad-based network of approximately 10,000 Allstate exclusive agencies in approximately 9,700 locations in the United States produced approximately 86% of the Allstate Protection segment's written premiums in 2011. It provides personal property and casualty insurance products through independent agencies in the United States. Additionally, Allstate distribution, through brokering arrangements, offers non-proprietary products to consumers when an Allstate product is not available.

ALLSTATE FINANCIAL SEGMENT

Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products. Its principal products are interest-sensitive, traditional and variable life insurance; fixed annuities, including deferred and immediate; and voluntary accident and health insurance. Its institutional products consist of funding agreements sold to unaffiliated trusts that use them to back medium-term notes issued to institutional and individual investors. Banking products and services were offered to! customer! s through the Allstate Bank through September 2011. In 2011, after receiving regulatory approval to voluntarily dissolve, Allstate Bank ceased operations.

The Company sells Allstate Financial products to individuals through multiple intermediary distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents, specialized structured settlement brokers and directly through call centers and the Internet. The Company sells products through independent agents affiliated with approximately 125 master brokerage agencies. Independent workplace enrolling agents and Allstate exclusive agencies also sell its voluntary accident and health insurance products primarily to employees of unaffiliated businesses. Its mortgage loan portfolio, which is primarily held in the Allstate Financial portfolio, totaled $7.14 billion as of December 31, 2011

Allstate Financial, through several companies, is authorized to sell life insurance and retirement products in all 50 states, the District of Columbia, Puerto Rico, the United States, Virgin Islands and Guam. Allstate Financial distributes its products to individuals through multiple distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents (including master brokerage agencies and workplace enrolling agents), specialized structured settlement brokers and directly through call centers and the Internet.

OTHER BUSINESS SEGMENTS

The Company�� Corporate and Other segment consistsof holding company activities and certain non-insurance operations. It�� Discontinued Lines and Coverages segment includes results from insurance coverage that it no longer writes and results for certain commercial and other businesses in run-off. Its exposure to asbestos, environmental and other discontinued lines claims is presented in the segment. The segment also includes the historical results of the commercial and reinsurance businesses ! sold in 1! 996.

Advisors' Opinion:

• [By Adrian Day]

  Adrian Day: Yes, yes, I like the concept of looking up the secondary plays. I mean, you know we own Altius (ALS) for example, rather than Alderon (ADV). Altius owns 30% of Alderon, that is more diversified, has a better balance sheet. If Alderon succeeds, Atius will succeed.