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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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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) September 30, 1996
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)
Allstate Plaza, Northbrook, Illinois 60062
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (847) 402-6075
Page 1 of 6
Exhibit Index at page 4
Item 5. Other Events
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On September 30, 1996, the Registrant issued the press release attached
hereto as Exhibit 99.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
Exhibit No. Description
- - ---------- ------------
99 Registrant's press release dated
September 30, 1996.
Page 2 of 6
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/ Samuel H. Pilch
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Name: Samuel H. Pilch
Title: Controller
September 30, 1996
Page 3 of 6
Index to Exhibits
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Sequential
Page
Number Description Number
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99 Registrant's press release dated 5
September 30, 1996
Page 4 of 6
Allstate Insurance Company Exhibit No. 99
NEWS
FOR MORE INFORMATION
Kathleen Hogan
847-402-5600
FOR IMMEDIATE RELEASE
ALLSTATE TO RESUME SELLING PROPERTY
INSURANCE IN CALIFORNIA
NORTHBROOK, Ill., September 30, 1996 -- Allstate Insurance Company
announced today that it will soon resume normal business operations in
California -- including the sale of property insurance - - as a result of the
passage of the California Earthquake Authority (CEA).
The CEA legislation, signed by the governor on Friday, will open up the
property insurance market for Californians, and allow insurance companies such
as Allstate to resume its position in the California homeowners marketplace.
"This is a win-win for our customers, employees, agents and for
insurers in California," said Jerry D. Choate, Chairman and Chief Executive
Officer of Allstate. "In fact, this legislation helps anyone trying to purchase
homeowners insurance in the state, furthering the rebound of California's
economy."
The passage of the CEA and resumption of the sale of property insurance
in California follows the company's announcement this summer to reorganize its
property operations in Florida, another catastrophe- prone area of the country.
Once these actions are fully implemented, Allstate will be close to achieving
its stated goal of reducing catastrophe exposure to the $1-billion range with a
one percent probability per event.
Allstate's catastrophe exposure management initiatives in California
and Florida have been the company's highest priority in the past several years.
Allstate has been working with regulatory officials and the legislature in
California to find ways to reduce exposure while providing uninterrupted
coverage for its customers.
Page 5 of 6
CEA Passes
Page 2
"Commissioner Quackenbush and the California Legislature, under the
bi-partisan leadership of Senators William Lockyer and Assemblymen Curt Pringle
and David Knowles, shoud be applauded for finding this solution, which will
revitalize and bring stability to the property insurance marketplace in
California. Without their effort and dedication, the homeowners insurance crisis
would have been greatly exacerbated," said Choate.
The CEA will become operational when at least 70 percent of the state's
residential property insurance market agrees to participate and the necessary
commitments from reinsurers are obtained. The Department of Insurance has said
it expects the CEA to be selling policies by December 1. Allstate has officially
declared its intention to participate in the CEA and will reflect the $150
million initial payment to the CEA in its third quarter earnings report. The
exact date of Allstate's business resumption has yet to be announced.
Allstate would also be obligated to pay additional assessments of
approximately $750 million, in the event that the initial capitalization and
retained earnings of the CEA are exhausted by claim payments. While management
believes that this action has reduced the company's exposure to catastrophes in
California, the extent of future reduction is uncertain.
Allstate Insurance Company is the nation's second largest personal
lines insurance company, insuring one of every eight homes and automobiles in
the country. The company provides insurance for more than 20 million customers
and has approximately 15,000 full-time agents in the U.S. and Canada. Allstate
is also a major life insurer.
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