The issuer credit rating on Allstate Corp. (Allstate) is based on the company's strong business profile, strong operating performance, very strong capitalization, and good financial flexibility. Partially offsetting these factors are the group's recently unfavorable (but improving) reserve development patterns and uncertainties associated with its discontinued lines and coverages reserves. Allstate's significant market position and strong brand name provide it with the scale and geographic diversification necessary to achieve better-than-average underwriting results relative to its peers. Allstate's operating results continued to improve in 2003 and exceed those of its relevant peer group, reflecting the favorable result of price firming throughout the personal lines sector and the group's tightening underwriting guidelines and expense reduction initiatives. The group's consolidated capital adequacy ratio
