8-KOther Events

ALLSTATE CORP 8-K Report, Corporate Update (Sep 26, 2016)

Filed September 26, 2016For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corp. (ALL) announced on September 23, 2016, a new $250 million accelerated share repurchase (ASR) agreement with Wells Fargo. The company expects to receive the majority of these shares, approximately 3.1 million, at the agreement's inception, with the final number of shares repurchased determined by market-based pricing over a period of up to November 23, 2016. This new ASR is part of a larger $1.5 billion share repurchase program authorized on May 4, 2016. Furthermore, the filing also confirms the completion of a previous ASR with Barclays Bank PLC, under which Allstate repurchased approximately 5.19 million shares for an average price of $67.47. These repurchases underscore Allstate's commitment to returning capital to shareholders as part of its broader capital return strategy. As of September 23, 2016, the company had repurchased a total of 13.6 million shares in 2016 for approximately $881.9 million, continuing its program to reduce outstanding shares.

Key Highlights

  • 1Allstate entered into a new $250 million accelerated share repurchase (ASR) agreement with Wells Fargo.
  • 2The majority of shares under the new ASR (3.1 million) are expected to be received at the agreement's inception.
  • 3The new ASR is part of a larger $1.5 billion common share repurchase program announced on May 4, 2016.
  • 4Allstate completed a prior ASR with Barclays Bank PLC, repurchasing approximately 5.19 million shares at an average price of $67.47.
  • 5Year-to-date (as of Sept 23, 2016), Allstate has repurchased 13.6 million shares for $881.9 million.
  • 6Shares repurchased are being placed into treasury, indicating a reduction in outstanding share count.

Frequently Asked Questions

The primary purpose of the new ASR agreement is to repurchase $250 million of Allstate's outstanding common stock, reflecting the company's commitment to returning capital to shareholders as part of its ongoing share repurchase program.

The new ASR agreement will reduce the number of Allstate's outstanding common shares. The company expects to receive a significant portion of the repurchased shares upfront, with the final settlement based on market pricing, ultimately reducing the total share count.

Allstate announced a $1.5 billion common share repurchase program on May 4, 2016. As of September 23, 2016, the company had repurchased a total of 13.6 million common shares for an aggregate amount of $881.9 million during 2016, including the impact of both the new and previously completed ASRs.

When shares are placed into treasury, it means the company has repurchased them and holds them on its balance sheet. These shares are no longer outstanding and cannot be voted or receive dividends. This action effectively reduces the company's total outstanding share count, which can positively impact earnings per share (EPS).