8-KOther Events

ALLSTATE CORP 8-K Report, Corporate Update (Nov 1, 2019)

Filed November 1, 2019For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corporation (ALL) announced on November 1, 2019, its entry into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC to buy back $500 million of its outstanding common stock. The majority of these shares are expected to be delivered to Allstate at the agreement's commencement, with Goldman Sachs completing its market purchases by January 8, 2020. This ASR is a component of Allstate's previously announced $3 billion repurchase program initiated in October 2018. This action signals management's confidence in the company's valuation and its commitment to returning capital to shareholders. Investors should note that the final share count and price will be determined based on market prices during Goldman Sachs's purchase period, and any final settlement adjustments may be made in cash or additional shares. As of October 31, 2019, excluding this new ASR, Allstate had already repurchased $1.37 billion worth of shares under its existing program.

Key Highlights

  • 1Allstate entered into a $500 million accelerated share repurchase (ASR) agreement with Goldman Sachs.
  • 2The ASR is part of a larger $3 billion share repurchase program announced in October 2018.
  • 3Majority of shares under the ASR are expected to be delivered to Allstate at the agreement's inception.
  • 4Goldman Sachs is expected to complete market purchases for the ASR by January 8, 2020.
  • 5The final number of shares repurchased will be determined by volume-weighted average prices during Goldman Sachs's purchase period.
  • 6Allstate had already repurchased $1.37 billion of its stock as of October 31, 2019, under the existing program.
  • 7Repurchased shares will be held in treasury.

Frequently Asked Questions

The accelerated share repurchase agreement is for $500 million of Allstate's outstanding common stock.

This ASR is part of a larger $3 billion share repurchase program that was announced on October 31, 2018, demonstrating Allstate's ongoing commitment to returning capital to shareholders.

The majority of the shares are expected to be received by Allstate at the inception of the agreement, with Goldman Sachs completing its market purchases by January 8, 2020.

The final purchase price per share and the total number of shares will be determined at the conclusion of the agreement, based on the average of the daily volume-weighted average prices of Allstate's common stock during the period Goldman Sachs makes its market purchases.