A.M. Best Assigns Debt Rating to The Allstate Corporation’s Newly Issued Subordinated Debentures
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. Venezia
Senior Financial Analyst
(908) 439-2200, ext. 5034
michael.venezia@ambest.com
or
Gary Davis
Assistant Vice President
(908) 439-2200, ext. 5665
gary.davis@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com
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