Free video reveals how to solve boomers' idle $13 trillion with IULs.
Essential professional and leadership development opportunities.
Essential professional and leadership development opportunities.
Essential professional and leadership development opportunities.
Estate Planning Failures of the Rich and Famous V

INN Blog

More Posts
 

Allstate Board OKs Share Buyback Plan Of Up To $1B

The Allstate Corp. board of directors approved a plan to buy back up to $1 billion of the insurer's shares by the end of next year...

NORTHBROOK, Ill. -- The Allstate Corp. said Monday that its board of directors approved a plan to buy back up to $1 billion of the insurer's shares by the end of next year.

The company will fund the share buyback plan by issuing a like amount of subordinated debentures to be issued over the next year.

"Repurchasing stock at today's low multiples by issuing securities with equity-like terms takes advantage of historically low yields in the market and reduces our cost of capital," said Thomas J. Wilson, Allstate's chairman, president and CEO.

Wilson noted that the company remains financially strong, with all of its insurance subsidiaries appropriately capitalized and $2.3 billion of assets at the holding company level as of Sept. 30.

Allstate recently concluded a $1 billion stock repurchase program.

The company said it will buy shares under the new buyback plan on the open market, and may launch additional share buyback programs as the new $1 billion program is executed.

Allstate, based in Northbrook, Ill., is the nation's largest publicly held personal lines insurer. It serves roughly 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment.

Allstate shares rose 61 cents to close at $40.79.

Copyright: (c) 2012 The Associated Press. All rights reserved.
Source: Associated Press
Wordcount: 206


USER COMMENTS:

comments powered by Disqus

  More Life Insurance News

More Life Insurance News >>
  Most Popular Life Insurance News

More Popular Life Insurance News >>
Hot Off the Wires  Hot off the Wires

More Hot News >>

insider icon Denotes premium content. Learn more about becoming an Insider here.
Be the first to sell this groundbreaking FIUL.