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Bulletin: Allstate Corp. And Subsidiaries Ratings Unaffected By Announced Esurance Acquisition May 11
Standard & Poors, May 2011
Abstract
NEW YORK (Standard & Poor's) May 19, 2011--Standard & Poor's Ratings Services said today that it is taking no rating action on Allstate Corp. (NYSE:ALL; A-/Stable/A-2) or its subsidiaries following the announcement that the company has entered into a definitive agreement with White Mountains Insurance Group Ltd. (NYSE:WTM; BBB-/Stable/--) in which Allstate will purchase Esurance and Answer Financial for approximately $1 billion. The transaction is expected to close by the end of this year, subject to customary regulatory approvals. We expect that Allstate will fund the transaction through holding-company cash, so it will have little effect on the company's capital structure and coverage ratios. Nevertheless, we consider Allstate's insurance operating companies' capital adequacy to be deficient at the current rating...
Companies mentioned in this report are: Allstate Corp.,White Mountains Insurance Group Ltd.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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