Company Will Also Expense Stock Option Costs
NORTHBROOK, Ill., Aug. 13 /PRNewswire-FirstCall/ -- The Allstate
Corporation (NYSE: ALL) announced today that Edward M. Liddy and Casey J.
Sylla, as chief executive officer and chief financial officer for the
corporation, respectively, signed and submitted certifications to the U.S.
Securities and Exchange Commission in accordance with the commission's order
issued June 27, 2002.
The certificates state that Allstate's Annual Report on Form 10-K for the
fiscal year ended December 31, 2001 and its Quarterly Reports on Form 10-Q for
the fiscal periods ended March 31 and June 30, 2002 did not contain any
misstatements or omissions of material fact as of the end of the periods
covered by such reports.
The company also announced that, in accordance with Statement of Financial
Accounting Standard ("SFAS") No. 123, it would begin expensing the fair value
of all stock options granted on or after January 1, 2003. This change in
accounting practice also will be effective January 1, 2003.
Allstate estimates the initial impact of adopting SFAS No. 123 for 2003
will be approximately $11 million after-tax ($.02 per diluted share).
Assuming the continuation of historical trends related to the number and
vesting period of stock options granted, the annual expense would grow to
approximately $.07 per diluted share by 2006 as options vest.
"In this current climate, Allstate believes expensing stock options going
forward is in the best interest of shareholders and investors," said Allstate
Chairman, President and CEO Edward M. Liddy. "We believe that stock options
are valuable to align behavior, but we have been a modest user. My hope is
that other companies within our industry will agree that it is important for
investors to be able to compare company cost structures in a consistent manner
and that more will agree to adopt this accounting practice."
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer. Widely known through the "You're In Good Hands With
Allstate(R)" slogan, Allstate provides insurance products to more than 14
million households and has approximately 13,000 exclusive agents in the U.S.
and Canada. Customers can access Allstate products and services through
Allstate agents, or in select states at allstate.com and 1-800-Allstate.
Encompass(SM) and Deerbrook(R) Insurance brand property and casualty products
are sold exclusively through independent agents. Allstate Financial Group
includes the businesses that provide life insurance, retirement and investment
products, through Allstate agents, workplace marketing, independent agents,
banks and securities firms.
SOURCE The Allstate Corporation
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http://www.allstate.com
Company News On-Call:
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CONTACT:
Michael Trevino of The Allstate Corporation,
+1-847-402-5600
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