Dec 17 Allstate Corp said its board
approved a new share buyback program of up to $1 billion, to be
funded by issuing subordinated debentures.
The repurchase is expected to be completed by Dec. 31, 2013
and may include an accelerated repurchase program, the home and
auto insurer said in a statement.
"I was surprised to see that, because Allstate's performance
even including significant hurricane Sandy losses, have been
solid," Stifel analyst Meyer Shields said about the buyback
"On the other hand, this does preserve some financial
flexibility and I would have to ascribe the funding mechanism to
that .. the desire to maintain more flexibility," Shields added.
The buybacks will begin immediately and the hybrid
securities will be sold over the year.
The company recently concluded a $1 billion repurchase
announced in November 2011, funded using preferred stock and
senior unsecured notes. () It has
said it expected October losses of $1.08 billion, largely
related to superstorm Sandy.
Allstate shares were marginally up in trading after the
bell. They had closed at $40.79 on the New York Stock Exchange.