NORTHERN TRUST CORP
SC 13G/A, 1999-03-22
STATE COMMERCIAL BANKS
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<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION

                             Washington, DC  20549

                                  SCHEDULE 13G
                                        

                   Under the Securities Exchange Act of 1934
                               (Amendment No. 2)



                              Allstate Corporation
                              --------------------
                                (Name of Issuer)


                            Common Stock, $0.01 Par
                            -----------------------
                         (Title of Class of Securities)


                                  020002 10 1
                                  -----------
                                 (CUSIP Number)


Check the following box if a fee is being paid with this statement [_].(A fee is
not required only if the filing person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
<PAGE>
 
  ---------------------                                      -----------------
  CUSIP NO. 020002 10 1                 13G                  Page 2 of 6 Pages
  ---------------------                                      -----------------
 
- ------------------------------------------------------------------------------
      NAMES OF REPORTING PERSON
 1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
      
      Northern Trust Corporation                      36-2723087
      The Northern Trust Company                      36-1561860
      Northern Trust Bank of Arizona, NA              59-0258165
      Northern Trust Bank of California, NA           94-2938925
      Northern Trust Bank of Florida, NA              36-2798553
      Northern Trust Bank of Texas,  NA               75-1999849
      Northern Trust Quantitative Advisors, Inc       36-3608252
                          
- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 2                                                              (a) [_]
       Not Applicable                                           (b) [_]
                                                 
- ------------------------------------------------------------------------------
      S.E.C. USE ONLY
 3
 

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4                                 
          Northern Trust Corporation--a Delaware corporation with principal
          offices in Chicago, Illinois

- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5                                                       
     NUMBER OF            2,113,447
 
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6       
                          52,094,919
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7       
    REPORTING             2,999,615
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH          8       
                          234,114
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9                           
      54,288,338
- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
10    
                                                                    [_]
      Not Applicable 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11           
      6.62                                                                   

- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON
12           
      Northern Trust Corporation  HC

- ------------------------------------------------------------------------------

<PAGE>
 
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC  20549

             SCHEDULE 13G UNDER THE SECURITIES EXCHANGE ACT OF 1934
                                        
Check the following box if a fee is being paid with statement [_].

1.   (a)  Allstate Corporation
          (Name of Issuer)

     (b)  2775 Sanders Road, Northbrook, Illinois 60062
          (Address of Issuer's Principal Executive Office)

2.   (a)  Northern Trust Corporation
          (Name of Person Filing)

     (b)  50 South LaSalle Street, Chicago, Illinois 60675
          (Address of Person Filing)
 
     (c)  U.S. (Delaware Corporation)
          (Citizenship)
 
     (d)  Common Stock, $0.01 Par
          (Title of Class of Securities)
 
     (e)  020002 10 1
          (CUSIP Number)

3.   This statement is being filed by Northern Trust Corporation as a Parent
     Holding Company in accordance with S240.13d-1(b) (1) (ii) (G).
 
4.   (a)  54,288,338
          (Amount Beneficially Owned)
 
     (b)  6.62
          (Percent of Class)

     (c)  Number of shares as to which such person has:
 
          (i)    2,113,447
                    (Sole Power to Vote or to Direct the Vote)
 
          (ii)   52,094,919
                    (Shared Power to Vote or to Direct the Vote)
 
          (iii)  2,999,615
                    (Sole Power to Dispose or Direct Disposition)

          (iv)   234,114
                    (Shared Power to Dispose or Direct Disposition)
<PAGE>
 
5.   If this statement is being filed to report the fact that as of the date
     hereof the reporting person has ceased to be the beneficial owner of more
     than 5 percent of the class of securities, check the following: [_]

6.   Statement regarding ownership of 5 percent or more on behalf of another
     person:



7.   Parent Holding Company reporting on behalf of the following subsidiaries,
     all of which are banks as defined in Section 3(a)(6) of the Act:
     
     The Northern Trust Company             Northern Trust Bank of Arizona N.A.
     50 South LaSalle Street                2398 East Camelback Road
     Chicago, IL 60675                      Phoenix, AZ 85016
 
     Northern Trust Bank of Florida N.A.    Northern Trust Bank of California
     700 Brickell Avenue                    N.A.
     Miami, FL 33131                        355 South Grand Avenue, Suite 2600
                                            Los Angeles, CA 90071
 
     Northern Trust Bank of Texas N.A.      Northern Trust Quantitative
     2020 Ross Avenue                       Advisors, Inc.                     
     Dallas, TX 75201                       50 South LaSalle Street
                                            Chicago, IL 60675


8.   Identification and Classification of Members of the Group.

                                Not Applicable.

9.   Notice of Dissolution of Group.

                                Not Applicable.

10.  By signing below I certify that, to the best of my knowledge and belief,
     the securities referred to above were acquired in the ordinary course of
     business and were not acquired for the purpose of and do not have the
     effect of changing or influencing the control of the issuer of such
     securities and were not acquired in connection with or as a participant in
     any transaction having such purpose or effect.

<PAGE>
 
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete
and correct.


                                               NORTHERN TRUST CORPORATION


      

                                               ________________________________
                                               By:  Perry R. Pero

DATED:  03-18-99                               As its:  Sr. Executive Vice
                                                        President
<PAGE>
 
                            EXHIBIT TO SCHEDULE 13G
                      FILED BY NORTHERN TRUST CORPORATION
                                        

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549-1004
Attention: Filing Desk, Stop 1-4

                           RE:  Allstate Corporation
                               ---------------------
                                        
     Pursuant to the requirement of 240.13d-1(k) (1) (iii), this exhibit shall
constitute our written agreement that the Schedule 13G to which this exhibit is
attached is filed on behalf of Northern Trust Corporation and of its
subsidiary(ies), as stated below, regarding our respective beneficial ownership
in the above-captioned equity security.

                                            NORTHERN TRUST CORPORATION

                                            _________________________________
                                            By:  Perry R. Pero

DATED:  03-18-99                            As its:  Sr. Executive Vice
                                                     President


The NORTHERN TRUST COMPANY

________________________________________
By: Perry R. Pero
As its Sr. Executive Vice President



NORTHERN TRUST BANK OF ARIZONA, NA
NORTHERN TRUST BANK OF CALIFORNIA, NA
NORTHERN TRUST BANK OF FLORIDA, NA
NORTHERN TRUST BANK OF TEXAS, NA

________________________________________
By: Barry G. Hastings
As its Authorized Representative



NORTHERN TRUST QUANTITATIVE ADVISORS, INC.

________________________________________
By:  John Goodwin
As its Managing Director


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