Research Update: Allstate Corp. And Core Subsidiaries Downgraded On Weaker Capital And Underwriting Results; Outlook Stable

Through the first six months of 2023, Allstate Corp's underwriting performance declined due to catastrophe losses, auto losses, and modest adverse reserve development. This led to a net loss of $1.7 billion through the first six months. Allstate shareholders' equity declined in the first six months of 2023 as a result of underwriting losses and shareholder returns (dividends and repurchases). We downgraded the holding company, core operating companies, and all rated issuances, reflecting our reassessment of capital and the ability to manage the volatility of the capital base because of catastrophe, reserve, and investment management. We lowered our long-term issuer credit rating on the holding company to 'BBB+' from 'A-' and our issuer credit and financial strength ratings on the

...- Through the first six months of 2023, Allstate Corp's underwriting performance declined due to catastrophe losses, auto losses, and modest adverse reserve development. - This led to a net loss of $1.7 billion through the first six months. - Allstate shareholders' equity declined in the first six months of 2023 as a result of underwriting losses and shareholder returns (dividends and repurchases). - We downgraded the holding company, core operating companies, and all rated issuances, reflecting our reassessment of capital and the ability to manage the volatility of the capital base because of catastrophe, reserve, and investment management. We lowered our long-term issuer credit rating on the holding company to '###+' from 'A-' and our issuer credit and financial strength ratings on the core operating subsidiaries to 'A+' from '##-'. - The stable outlook reflects our expectation that Allstate's underwriting and capitalization will stabilize with underwriting returning to profitability...

Research Update