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) October 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
Page 1 of 6
Exhibit Index at page 4
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Item 5. Other Events
On October 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
October 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
October 11, 1999
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INDEX TO EXHIBITS
SEQUENTIAL
PAGE
NUMBER DESCRIPTION NUMBER
99 Registrant's press release dated 5
October 1, 1999
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Exhibit No. 99
The Allstate Corporation
NEWS
FOR MORE INFORMATION:
Allstate Media Relations
April Hattori
(847)402-8373
For Immediate Release
ALLSTATE CLOSES PURCHASE OF CNA PERSONAL LINES
NORTHBROOK, Ill., Oct. 1, 1999 - The Allstate Corporation (NYSE: ALL) today
announced that it has closed its previously announced purchase of the personal
lines business of Chicago-based CNA, the insurance unit of CNA Financial
Corporation (NYSE:CNA). The transaction is a major component of Allstate's
strategy to increase its growth opportunities.
The deal, announced in June, was valued at $1.2 billion and is expected to
increase Allstate's total annual premium revenue from the independent agent
channel to approximately $3 billion. Allstate has established a new business,
CNA Personal Insurance, that will sell CNA personal lines insurance under its
current CNA brand name.
"We are pleased to finalize our acquisition of CNA personal lines. The
formation of CNA Personal Insurance is a key part of Allstate's new initiative
to become the leading provider of personal lines insurance in the $45 billion
independent agent market. It is also a major step in Allstate's strategy to
increase growth opportunities for the corporation by becoming multi-brand,
multi-product and multi-channel," said Bruce Marlow, president of Allstate's
Independent Agency Markets.
The acquisition of CNA's personal lines business makes Allstate the
nation's third largest provider of personal lines insurance through independent
agents, based on 1998 premium on a pro forma basis. Prior to the acquisition,
Allstate was the ninth largest company marketing insurance through this channel.
Allstate currently sells non-standard auto insurance through 13,000
independent agents using the Deerbrook brand name in 37 states. In rural areas,
Allstate has appointed 3,000 independent agents to sell Allstate-branded
products. CNA personal lines products are sold through an additional 3,800
independent agents in 42 states.
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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 Allstate's total
annual premium revenue from the independent agent channel 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 the
possibility that CNA insurance policies will not be renewed is an important
factor that could cause actual annual premium revenue from the independent agent
channel to differ materially from the estimate reported in this release.
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