The counterparty credit rating on Allstate Corp. (Allstate) is based on the company's diversified and favorable earnings; very strong interest and fixed charge coverage metrics; very strong liquidity and financial flexibility; and excess capital at Kennett Capital, a wholly owned investment company. Partially offsetting these strengths are a somewhat aggressive share repurchase strategy that has reduced capitalization from historically higher levels, earnings and capital volatility due to continued exposure to potential catastrophic losses, and recurring adverse asbestos reserve development. Allstate has a strongly diversified market presence in the U.S., with operations in both the property/casualty and life sectors. The company is the second-largest personal lines insurer in the U.S., with $27.4 billion in property-liability net premiums written in 2005. Furthermore,
