|[January 04, 2013]
A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has assigned a debt rating of "bbb+" to the 40-year
$500 million 5.10% fixed-to-floating subordinated debentures recently
issued by The Allstate Corporation (Allcorp) (Northbrook, IL)
[NYSE: ALL]. The assigned outlook is stable. All existing ratings of
Allcorp and its subsidiaries are unchanged.
The assigned rating recognizes Allstate Insurance Group's
(Allstate) solid risk-adjusted capitalization, generally favorable
operating performance and significant market presence. The rating also
is indicative of A.M. Best's view of the group's near-term earnings
prospects when considering its strong overall business profile as the
second-largest personal lines writer in the United States. As of third
quarter 2012, Allcorp's debt-to-capital and debt-to-tangible capital
ratios were 25.4% and 26.7%, respectively, and the company continues to
maintain a fixed interest coverage ratio that is supportive of its
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include:
"Understanding BCAR for Property/Casualty Insurers"; "Insurance Holding
Company and Debt Ratings"; "Catastrophe Analysis in A.M. Best Ratings";
"Rating Members of Insurance Groups"; "Equity Credit for Hybrid
Securities"; and "Risk Management and the Rating Process for Insurance
Companies." Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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