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This excerpt taken from the ALL 10-Q filed Nov 6, 2008. 2009 Capital Outlook Should ALIC subsequently require the remaining
approved funding of $250 million from AIC, the Corporation may contribute rated
municipal bonds to AIC, which is consistent with AIC’s enterprise-wide asset
allocation strategy to offset the impact to AIC’s capital. The Corporation’s net remaining investments
would amount to $3.77 billion after this funding and are sufficient to meet
quarterly fixed charges of approximately $275 million and $750 million of
maturing debt in December 2009, if not refinanced, before considering
receipt of AIC’s 2009 estimated potential dividends of $1.39 billion that can
be paid without prior regulatory approval, which would increase the Corporation’s
deployable assets to $3.03 billion in 2009.
These assets would be available to support operating subsidiaries’
capital and borrowing needs and for general corporate purposes as discussed
previously. Allstate Protection
anticipates continuing to produce strong underwriting results in its standard
auto operations while its on-going focus on homeowners catastrophe management
actions serves to reduce exposure to adverse catastrophe developments. ALIC will continue to be exposed to adverse
developments in its investment portfolio and to pressures on its risk based
capital ratio. ALIC’s risk based capital
ratio following the $1.00 billion capital infusion will improve to its targeted
range.
The Corporation is well capitalized. Moreover, in addition to historic external sources of capital including the debt and equity capital markets and our $1.00 billion credit facility, access to funding from additional sources,
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including participation in programs offered by the U.S. Treasury and other governmental organizations, are potentially available to the Corporation and its operating subsidiaries for capital and liquidity needs.
This excerpt taken from the ALL 8-K filed Oct 23, 2008. 2009 Capital Outlook
Should ALIC subsequently require the remaining approved funding of $250 million from AIC, the Corporation may contribute rated municipal bonds to AIC, which is consistent with AIC’s enterprise-wide asset allocation (“EAA”) strategy to offset the impact to AIC’s capital. The Corporation’s net remaining investments would amount to $3.77 billion after this funding and are sufficient to meet quarterly fixed charges of approximately $275 million and $750 million of maturing debt in December 2009, if not refinanced, before considering receipt of AIC’s 2009 estimated potential dividends of $1.39 billion that can be paid without prior regulatory approval, which would increase the Corporation’s deployable assets to $3.03 billion in 2009. These assets would be available to support operating subsidiaries’ capital and borrowing needs and for general corporate purposes as discussed previously. Allstate Protection anticipates continuing to produce strong underwriting results in its standard auto operations while its on-going focus on homeowners catastrophe management actions serves to reduce exposure to adverse catastrophe developments. ALIC will continue to be exposed to adverse developments in its investment portfolio and to pressures on its risk based capital ratio. ALIC’s risk based capital ratio following the $1.00 billion capital infusion will improve to its targeted range.
The Corporation is well capitalized. Moreover, in addition to historic external sources of capital including the debt and equity capital markets and our $1.0 billion credit facility, access to funding from additional sources, including participation in programs offered by the U.S. Treasury and other governmental organizations, are potentially available to the Corporation and its operating subsidiaries for capital and liquidity needs.
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