8-KOther Events

ALLSTATE CORP 8-K Report, Corporate Update (Dec 11, 2017)

Filed December 11, 2017For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corp. (ALL) announced on December 8, 2017, that it entered into an accelerated share repurchase agreement with Morgan Stanley for $300 million of its common stock. This initiative is part of a larger $2 billion repurchase program initially announced on August 1, 2017. The majority of shares under the accelerated repurchase will be delivered to Allstate at the agreement's outset, with Morgan Stanley expected to acquire these shares in the open market by February 8, 2018. This move signals a strong commitment by Allstate's management to return capital to shareholders and a positive outlook on the company's valuation. Investors should note that while the initial delivery provides immediate impact, the final share count and price will be determined by market performance during the repurchase period. The company has already repurchased $477 million of its stock, totaling 5.1 million shares, prior to this new agreement.

Key Highlights

  • 1Allstate Corp. entered into a $300 million accelerated share repurchase agreement with Morgan Stanley.
  • 2This repurchase is part of a broader $2 billion share repurchase program announced in August 2017.
  • 3The majority of repurchased shares are expected to be delivered to Allstate at the agreement's inception.
  • 4Morgan Stanley is expected to acquire the delivered shares in the market by February 8, 2018.
  • 5The final number of shares and price will be based on the average daily volume-weighted average prices during Morgan Stanley's purchase period.
  • 6As of December 8, 2017, Allstate had already repurchased 5.1 million shares for $477 million under its existing program.

Frequently Asked Questions

The primary purpose is to return capital to shareholders and reduce the number of outstanding shares, consistent with the company's previously announced $2 billion share repurchase program.

The final purchase price per share and the exact number of shares will be determined at the conclusion of the agreement. Allstate will receive shares based on the average of the daily volume-weighted average prices of its common stock during the period Morgan Stanley makes its market purchases.

Allstate announced a total repurchase program of $2 billion. This $300 million accelerated repurchase is a significant component of that larger program.

Yes, as of December 8, 2017, Allstate had already repurchased 5.1 million shares for an aggregate amount of $477 million under its repurchase program, excluding the shares to be acquired under this new accelerated agreement.