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
