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Press release from Business Wire

A.M. Best Assigns Ratings to The Allstate Corporation's New Shelf Registration

Monday, May 07, 2012

A.M. Best Assigns Ratings to The Allstate Corporation's New Shelf Registration11:55 EDT Monday, May 07, 2012 OLDWICK, N.J. (Business Wire) -- A.M. Best Co. has assigned indicative ratings of “a-” to senior debt, “bbb+” to subordinated debt, “bbb” to junior subordinated debt and “bbb” to preferred stock of the recently filed shelf registration of The Allstate Corporation (Allcorp) (Northbrook, IL) [NYSE: ALL]. Additionally, A.M. Best has assigned indicative ratings of “bbb” to the preferred securities of Allstate Financing VII, VIII, IX and X, which may be issued under Allcorp's shelf registration statement. The outlook assigned to all ratings is stable. The new shelf registration replaces Allcorp's previous shelf registration, which is expiring on May 8. Consequently, the indicative ratings for the previous shelf registration have been withdrawn. The assigned ratings recognize Allstate Insurance Group's (Allstate) solid risk-adjusted capitalization, generally favorable operating performance and significant market presence. The ratings also are indicative of A.M. Best's view of the group's near-term earnings prospects when considering Allstate's strong overall business profile as the second-largest personal lines writer in the United States. As of first quarter 2012, Allcorp's debt-to-capital and debt-to-tangible capital ratios were 24.5% and 25.8%, respectively, and the company continues to maintain a fixed interest coverage ratio that is supportive of its ratings. 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 © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.A.M. Best Co.Michael T. Venezia, 908-439-2200, ext. 5034Senior Financial Analystmichael.venezia@ambest.comorRachelle Morrow, 908-439-2200, ext. 5378Senior Manager, Public Relationsrachelle.morrow@ambest.comorGary Davis, 908-439-2200, ext. 5665Assistant Vice Presidentgary.davis@ambest.comorJim Peavy, 908-439-2200, ext. 5644Assistant Vice President, Public Relationsjames.peavy@ambest.com