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A.M. BEST PLACES CONSOLIDATED RATING OF ALLSTATE INSURANCE GROUP (PROPERTY/CASUALTY) UNDER REVIEW

A.M. BEST PLACES CONSOLIDATED RATING OF ALLSTATE INSURANCE GROUP
 (PROPERTY/CASUALTY) UNDER REVIEW
 OLDWICK, N.J., Oct. 7 /PRNewswire/ -- Effective immediately, A.M. Best's "A" (Excellent) consolidated rating of the Allstate Insurance Group (property/casualty) is under review with negative implications, pending further evaluation of the group's capital position and current business plan. A.M. Best's action reflects the impact of Allstate's revised loss estimate for Hurricane Andrew announced yesterday.
 A.M. Best intends to complete the review and re-evaluate the group's rating in the next month after meeting with Allstate's management. The rating applies to the group's eight property/casualty members, led by Allstate Insurance Company.
 Allstate estimates losses from Hurricane Andrew to result in a $1.4 billion after-tax charge to third-quarter statutory earnings, more than double its previous net after-tax loss estimate.
 At this time, Allstate's management expects that the losses from Hurricane Andrew will be largely offset by 1992's statutory earnings and other positive surplus adjustments. Nonetheless, it is anticipated that the group's 1992 year-end surplus will decline from 1991's year-end figure of $5.4 billion. This expected capital erosion will put further pressure on the group's leverage, which historically has been high relative to other personal lines insurance companies.
 The "A++" (Superior) Best's Ratings of the Allstate Life Insurance Company and its subsidiaries are not affected by A.M. Best's review of the property/casualty ratings.
 -0- 10/7/92
 /CONTACT: Christina Stein of A.M. Best Company, 908-439-2200, ext. 5642/ CO: Allstate Insurance Group ST: Illinois IN: INS SU: RTG


AH -- NY038 -- 7486 10/07/92 13:22 EDT
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Publication:PR Newswire
Date:Oct 7, 1992
Words:266
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