8-KOther Events

ALLSTATE CORP 8-K Report, Corporate Update (Aug 4, 2014)

Filed August 4, 2014For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corporation (ALL) announced on August 1, 2014, that it entered into an accelerated share repurchase agreement with Morgan Stanley & Co. LLC for $750 million of its outstanding common stock. This transaction is a significant component of the company's broader repurchase program, which totals $2.5 billion and was initially announced on February 19, 2014. The majority of the shares will be repurchased immediately, with the final settlement based on market prices over a period of up to four and a half months. This accelerated share repurchase program signals Allstate's commitment to returning capital to shareholders and potentially enhancing shareholder value by reducing the number of outstanding shares. Investors should monitor the impact of these repurchases on earnings per share and overall capital allocation strategy.

Key Highlights

  • 1Allstate entered into an accelerated share repurchase agreement for $750 million of its common stock.
  • 2The agreement was made with Morgan Stanley & Co. LLC.
  • 3This repurchase is part of a larger $2.5 billion share repurchase program announced on February 19, 2014.
  • 4The majority of shares are expected to be repurchased at the agreement's inception.
  • 5The final settlement will be based on market prices over a period not exceeding four and a half months.
  • 6Shares acquired will be held in treasury.
  • 7The company may settle any remaining amount in cash or stock.

Frequently Asked Questions

The accelerated share repurchase agreement is for $750 million of Allstate's outstanding common stock.

This accelerated share repurchase is part of a larger $2.5 billion share repurchase program that Allstate announced on February 19, 2014.

The majority of the shares to be repurchased under this agreement are expected to be received by Allstate at the agreement's inception, which was August 1, 2014.

The final purchase price per share and number of shares will be determined at the conclusion of the agreement. Settlement will be based on the average of the daily volume-weighted average prices of Allstate's common stock during the period Morgan Stanley purchases the shares, which is expected to be within four and a half months.