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Press release from Business Wire

A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures

Friday, January 04, 2013

A.M. Best Assigns Debt Rating to The Allstate Corporation's Newly Issued Subordinated Debentures14:39 EST Friday, January 04, 2013 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 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 © 2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.A.M. Best Co.Michael T. VeneziaSenior Financial Analyst(908) 439-2200, ext. 5034michael.venezia@ambest.comorGary DavisAssistant Vice President(908) 439-2200, ext. 5665gary.davis@ambest.comorRachelle MorrowSenior Manager, Public Relations(908) 439-2200, ext. 5378rachelle.morrow@ambest.comorJim PeavyAssistant Vice President, Public Relations(908) 439-2200, ext. 5644james.peavy@ambest.com