SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
---------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) September 24, 1999
THE ALLSTATE CORPORATION
(Exact Name of Registrant as Specified in Charter)
DELAWARE 1-11840 36-3871531
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification
Incorporation) Number)
2775 SANDERS ROAD, NORTHBROOK, ILLINOIS 60062
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (847) 402-5000
Page 1 of 6
Exhibit Index at page 4
<PAGE>
Item 5. OTHER EVENTS
On September 24, 1999, the Registrant issued the press release attached
hereto as Exhibit 99.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT NO. DESCRIPTION
99 Registrant's press release dated
September 24, 1999
Page 2 of 6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
THE ALLSTATE CORPORATION
By s\ Robert W. Pike
Name: Robert W. Pike
Title: Vice President and
Secretary
September 24, 1999
Page 3 of 6
<PAGE>
INDEX TO EXHIBITS
SEQUENTIAL
PAGE
NUMBER DESCRIPTION NUMBER
99 Registrant's press release dated 5
September 24, 1999
Page 4 of 6
<PAGE>
Exhibit No. 99
The Allstate Corporation
NEWS
FOR MORE INFORMATION:
Allstate Media Relations
April Hattori
(847)402-8373
Allstate Investor Relations
Robert Block
Phil Dorn
(847)402-2800
For Immediate Release
ALLSTATE ANNOUNCES EXPECTED DECLINE IN THIRD QUARTER EARNINGS
NORTHBROOK, Ill., Sept. 24, 1999 - The Allstate Corporation today announced
that third quarter operating earnings per diluted share are expected to be $.50
to $.55 versus $.76 for the same period in 1998. Third quarter net income per
diluted share is expected to be $.70 to $.75 versus $.86 for the same period in
1998, subject to market conditions influencing the level of realized capital
gains. The actual results are expected to be announced on October 20th.
Factors contributing to the expected decrease include: projected higher
catastrophe losses including those from Hurricane Floyd; additional reserve
strengthening for asbestos-related losses; increased expenses to support growth
initiatives, including the company's new marketing campaign and continued
investments in technology; a decrease in margins resulting from increased loss
costs and a decrease in average premiums.
Given these trends, fourth quarter operating earnings per diluted share
could be between $.65 and $.73 versus $.78 for the same period in 1998,
depending on weather developments. Fourth quarter net income per diluted share
could be between $.76 and $.84 versus $.93 for the same period in 1998, subject
to market conditions influencing the level of realized capital gains. This
excludes anticipated charges from the acquisitions of CNA Personal Lines and
American Heritage Life.
"Intense competition in the personal lines industry coupled with a rise in
the cost of doing business is putting pressure on our near term earnings," said
Edward M. Liddy, Allstate's chairman, president and chief executive officer.
"However, proper execution of our multi-channel, multi-brand, multi-product, and
multi-national strategy will position us for profitable growth in the coming
years."
Page 5 of 6
<PAGE>
Allstate's "multi" strategy initiated at the beginning of this year has
broadened its future growth opportunities. Recent initiatives include the
company's alliance with Putnam Investments to market a variable annuity product
and the company's pending purchases of CNA Personal Lines and American Heritage
Life.
At the same time, Allstate has been undertaking a review of its core
business, including its cost structure, current business model effectiveness,
and price competitiveness relative to profitable policy growth. The review is
expected to be completed in the fourth quarter when the company will announce
actions it will take to improve its strategic and competitive position.
The Allstate Corporation is the nation's largest publicly held personal
lines insurance company. Its main business units include Allstate Personal
Property and Casualty, which provides insurance for more than 14 million
households and has approximately 15,500 agents in the U.S. and Canada, and
Allstate Life and Savings, which markets a number of life insurance and savings
products under a variety of brands through a number of channels and is currently
the nation's 13th largest life insurance business.
This release contains forward-looking statements about 1999 third and
fourth quarter earnings that are based on management's estimates, assumptions
and projections. The Private Securities Litigation Reform Act of 1995 provides a
safe harbor under The Securities Act of 1933 and The Securities Exchange Act of
1934 for forward-looking statements. In order to comply with the terms of the
safe harbor, Allstate notes that catastrophe losses are an important factor that
could cause actual earnings for these periods to differ materially from the
estimated earnings reported in this release.
###
Page 6 of 6
