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) November 1, 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
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Exhibit Index at page 4
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Item 5. OTHER EVENTS
On November 1, 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
November 1, 1999
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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\ EMMA M. KALAIDJIAN
Name: Emma M. Kalaidjian
Title: Assistant Secretary
November 1, 1999
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Index to Exhibits
SEQUENTIAL
PAGE
NUMBER DESCRIPTION NUMBER
99 Registrant's press release dated 5
November 1, 1999
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Exhibit No. 99
The Allstate Corporation
NEWS
For More Information:
Christine Hennessey
Allstate Media Relations
(847) 402-9572
[email protected]
Larry Sonis
American Heritage Life
904/798-1610
FOR IMMEDIATE RELEASE
ALLSTATE CLOSES PURCHASE OF AMERICAN HERITAGE LIFE
INVESTMENT CORP. TO ENTER WORK-SITE MARKETING ARENA
NORTHBROOK, Ill., Nov. 1, 1999 - The Allstate Corporation (NYSE:ALL)
announced today that it has completed its previously announced acquisition of
American Heritage Life Investment Corporation. (NYSE:AHL), the third largest
work-site marketer of life, disability and health insurance in the country. The
deal, valued at $1.1 billion, supports Allstate Life and Savings' strategy to
grow life insurance sales through new products and distribution channels. The
purchase further broadens and strengthens Allstate's multi-channel,
multi-product, and multi-brand strategy.
American Heritage Life Investment Corp. (AHLIC) shareholders overwhelmingly
supported the acquisition with more than 99 percent of the total votes cast in
favor of the transaction. AHLIC shareholders will receive $32.25 for each AHLIC
share, receivable in Allstate shares, cash or a combination. In addition,
Allstate will assume AHLIC's debt obligations under its outstanding mandatorily
redeemable preferred securities.
American Heritage Life Insurance Company, which is the principal subsidiary
of AHLIC, is the unit responsible for marketing the work-site life, disability
and health insurance products.
"Bringing together American Heritage Life's well-respected management and
expertise in work-site marketing with Allstate's capital and expansive agent
network will allow us to dramatically grow this company," said Edward M. Liddy,
Allstate's chairman, president and chief executive officer. "We plan to take
American Heritage Life from a regional to a national leader in work-site
marketing."
In 1998, American Heritage Life Insurance had revenues of $480 million and
recorded an operating profit of $36.4 million.
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"The work-site market is expected to grow 10 to 15 percent annually over
the next decade. A combination of American Heritage Life and Allstate will
enable us to take advantage of this growth as well as increase our market
share," said Tom Wilson, president, Allstate Life and Savings. "American
Heritage Life Insurance's existing management will continue to run the business
and its headquarters will remain in Jacksonville, Florida."
"The opportunities for growth as a member of the Allstate group are why
this merger took place. Now it is time to capitalize on those opportunities,"
said C. Richard Morehead, president and chief executive officer, American
Heritage Life.
This transaction follows the announcement of Allstate Life and Savings'
strategic alliance with Putnam Investments under which the companies introduced
the new Putnam Allstate Advisor variable annuity in May 1999. In addition, on
October 1, Allstate closed the purchase of CNA Personal Lines as a part of its
new initiative to become the leading provider of personal lines insurance in the
independent agent market.
American Heritage Life Insurance is licensed to conduct business in 49
states, the District of Columbia and Puerto Rico. It focuses primarily on the
sale of products to workers in companies with fewer than 1,000 employees. These
average to small size companies employ some 87 percent of the American
workforce.
The Allstate Corporation is the nations 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 17th largest life insurance business.
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