From the latest Allstate (ALL) 10-Q Quarterly SEC Filing
P5-
In July 2010, the FASB issued guidance requiring expanded disclosures relating to the credit quality of financing receivables and the related allowances for credit losses. The new guidance requires a greater level of disaggregated information, as well as additional disclosures about credit quality indicators, past due information and modifications of its financing receivables. The new guidance is effective for reporting periods ending after December 15, 2010. The new guidance affects disclosures only; and therefore, the adoption will have no impact on the Company’s results of operations or financial position.
That should get interesting.
P8-
Let see, they have less net investment overall from 2009 to 2010 (1,084 vs. 1,005MM); they had -144MM in realized capital gains- particularly getting hammered on their derivatives .
Then if we leave the 10 Q (which is hard to link to but can be found if you go to the Allstate website and hunt around in slightly illogical unable to repeat methods and find the SEC filings).
They are pushing for all sorts of property and casualty rate increases in multiple states. NY, TX, IL, MS, etc.
None of these look all that shocking. It is what it is, and they are what they are.
But would any of this lead you to the conclusion that it is a good time to start buying back shares and increasing the dividend? link
The SEC website link to the last Q:
http://www.sec.gov/Archives/edgar/data/899051/000110465910054017/a10-17601_110q.htm
This share buyback is indeed perplexing given ALL’s current financial position.
sop
The majority of analysts continue to espouse that the stock is under valued. The industry had a benign hurricane season and ALL is taking rate increases across the country which should only enhance the bottom line. Now the gurus in Northbrook are announcing another stock buy back.
One wonders if none of these factors are driving the stock to where it should be -WHY?
Could it be investors are leary of the current senior leadership team?
The amount of regulatory uncertainty cannot be helping their stock price.
Raising rates to cover the higher perceived costs of P&c insurance, and then not burying it into the reserves is simply looting.
But looting is exactly what the financial industry did best before the crash, and nothing has been done to prevent a continuation of the same. CEOs tend not to stay too long at any given company: they tend to be a little like sports coaches.
So the incentive to get what you can, while you can, is going to be very large for those within the middling talent ranks.