8-KOther Events

ALLSTATE CORP 8-K Report, Corporate Update (Jun 11, 2013)

Filed June 11, 2013For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation filed an 8-K on June 11, 2013, reporting the completion of an accelerated share repurchase agreement with Barclays Bank PLC, executed on June 6, 2013. This repurchase involved 10,348,825 shares, representing approximately 2.2% of outstanding shares as of February 28, 2013, at an average price of $48.83 per share. The company placed these repurchased shares into its treasury. This transaction is part of Allstate's broader share repurchase programs, totaling $2.0 billion, announced in December 2012 and February 2013. As of the report date, Allstate had repurchased a total of 17.1 million shares across these programs at an average price of $46.98 per share. This action signals the company's commitment to returning capital to shareholders and potentially increasing earnings per share.

Key Highlights

  • 1Allstate completed an accelerated share repurchase agreement with Barclays Bank PLC on June 6, 2013.
  • 210,348,825 shares were repurchased, representing 2.2% of outstanding shares as of February 28, 2013.
  • 3The average repurchase price was $48.83 per share, excluding commissions and discounts.
  • 4The repurchased shares have been placed into the company's treasury.
  • 5This repurchase is part of larger programs totaling $2.0 billion announced in late 2012 and early 2013.
  • 6As of June 6, 2013, a total of 17.1 million shares have been repurchased under these programs.
  • 7The overall average repurchase price for all shares bought under the programs is $46.98, excluding commissions.

Frequently Asked Questions

An accelerated share repurchase (ASR) is a program where a company buys back its own stock directly from an investment bank (in this case, Barclays). The company typically pays the investment bank an amount based on the then-current market price, and the bank delivers shares to the company. The final number of shares repurchased is often determined later based on an average of the market price over a specific period, with potential adjustments to the initial number of shares delivered.

Companies typically repurchase shares for several reasons, including returning excess cash to shareholders, increasing earnings per share (EPS) by reducing the number of outstanding shares, and signaling to the market that management believes the stock is undervalued. This action suggests Allstate is confident in its financial position and future prospects.

Under the announced repurchase programs totaling $2.0 billion, Allstate had repurchased a total of 17.1 million shares as of June 6, 2013, at an average price of $46.98 per share (excluding commissions). This indicates a significant portion of the authorized repurchase amount has been deployed.

When a company repurchases its own shares and places them into treasury, these shares are held by the company and are considered 'treasury stock.' They are not considered outstanding shares for the purpose of voting rights or dividend distributions. Treasury stock can be reissued later, held indefinitely, or retired.