Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Allstate Authorizes $2.5 Billion Share-Repurchase Program

Feb. 19 (Bloomberg) -- Allstate Corp., the largest publicly traded U.S. home and auto insurer, increased its dividend 12 percent and authorized the company’s largest buyback since 2006.

As much as $2.5 billion of stock can be repurchased in the next 18 months, and the quarterly dividend was lifted to 28 cents a share, Northbrook, Illinois-based Allstate said today in a statement distributed by PR Newswire.

Chief Executive Officer Tom Wilson, 56, is increasing shareholder returns after profit in the fourth quarter rose on lower catastrophe costs. Operating profit, which excludes some investment results, was $1.70 a share, beating by 33 cents the average estimate in a Bloomberg survey of 22 analysts. Wilson has focused on improving margins from covering cars and homes after limiting risk tied to life insurance and savings products.

“We’ve made substantial progress in improving returns” from homeowners’ policies, Wilson said on a Feb. 6 earnings call.

The company could repurchase as many as 48.3 million shares based on today’s closing price of $51.79 in New York. That’s about 11 percent of the 449 million shares outstanding.

Allstate rose to $52.15 in extended trading at 4:49 p.m. The insurer has gained 11 percent in the past year, compared with the 23 percent rally of the Standard & Poor’s 500 Insurance Index.

To contact the reporter on this story: Alexandria Baca in New York at abaca3@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.