NORTHBROOK, Ill., Aug. 4 /PRNewswire-FirstCall/ -- The Allstate
Corporation (NYSE: ALL) today reported financial results for the
second quarter of 2010:
|
|
Consolidated
Highlights
|
|
|
Three months
ended
June 30,
|
|
($ in millions, except per share
amounts and ratios)
|
2010
|
2009
|
% Change
|
|
Consolidated
revenues
|
$ 7,656
|
$
8,490
|
(9.8)
|
|
Net income
|
145
|
389
|
(62.7)
|
|
Net income per diluted
share
|
0.27
|
0.72
|
(62.5)
|
|
Operating income*
|
441
|
297
|
48.5
|
|
Operating income per diluted
share*
|
0.81
|
0.55
|
47.3
|
|
Book value per
share
|
33.24
|
27.87
|
19.3
|
|
Book value
per share, excluding the impact of unrealized net capital gains and
losses on fixed income securities*
|
32.51
|
31.55
|
3.0
|
|
Catastrophe
losses
|
636
|
818
|
(22.2)
|
|
Property-Liability combined
ratio
|
96.8
|
100.0
|
(3.2) pts
|
|
Property-Liability combined
ratio excluding the effect of catastrophes and prior year reserve
reestimates ("underlying combined ratio")*
|
88.1
|
87.2
|
0.9
pts
|
|
|
|
|
|
|
|
* Measures used in this release that are not based on accounting
principles generally accepted in the
United States of America ("non-GAAP") are defined and
reconciled to the most directly comparable GAAP measure and
operating measures are defined in the "Definitions of Non-GAAP and
Operating Measures" section of this document.
"We made continued progress in executing our strategies and
achieving our 2010 goals in the second quarter," said Thomas J. Wilson, chairman, president and chief
executive officer of The Allstate Corporation. "Profitability
at Allstate Protection met our underlying combined ratio outlook
for the year. Implementation of growth initiatives reduced
the impact of catastrophe risk management and profitability
actions, but has not yet generated sufficient volume to increase
overall policies in force. Allstate Financial's operating
income significantly rebounded reflecting progress on its strategic
repositioning and the benefit of reserve actions. Strong
investment results reflect our risk mitigation and return
optimization strategies.
"Operating income was $0.81 per
diluted share for the quarter compared to $0.55 per diluted share for the same quarter last
year due to a decline in catastrophe losses from a record second
quarter level in 2009. Net income was $0.27 per diluted share as derivative losses
reduced earnings. Derivative losses, however, were more than
offset by corresponding increases in investment valuations so that
book value per share increased by 3% in the quarter," said
Wilson.
Consolidated Financial Results
Allstate's second quarter 2010 operating income rose to
$441 million compared to $297 million in the same period of 2009,
reflecting improved results in both Property-Liability and Allstate
Financial. Net income was $145
million in the second quarter of 2010 compared to
$389 million in the second quarter of
2009 primarily due to realized capital losses in the 2010 quarter
versus realized capital gains in the prior year period.
Realized capital losses in the second quarter of 2010 reflect
risk management actions, including derivative losses that were
offset by increased portfolio valuations. Book value rose to
$33.24 per share at June 30, 2010 compared to $32.26 at March 31,
2010 and $27.87 at
June 30, 2009, reflecting higher
shareholders' equity primarily resulting from increased market
valuations for fixed income investments.
Property-Liability Combined Ratio Reflects Continued Strong
Auto Performance
Property-Liability results for the second quarter of 2010
reflect Allstate Protection's implementation of actions to
profitably grow standard auto and improve homeowners returns.
Property-Liability premiums written increased 0.4% in the
second quarter of 2010 compared to the prior year second quarter.
Allstate brand growth of 1.6% contributed to the premium
increase, partially offset by a 20.4% Encompass brand decline when
compared to the second quarter a year ago. Actions to improve
Encompass profitability negatively impacted results.
Allstate's Property-Liability business produced an underlying
combined ratio within the company's full-year outlook range of 88
to 90. The underlying combined ratio, which excludes
catastrophes and prior year reserve reestimates, was 88.1 in the
second quarter of 2010 compared to 87.2 in the same period of 2009,
primarily due to a higher expense ratio. The recorded
combined ratio was 96.8 for the second quarter of 2010, a 3.2 point
improvement from the second quarter of 2009.
Catastrophe losses totaled $636
million during the second quarter of 2010, reflecting 30
events with losses of $758 million,
offset by favorable reserve reestimates of $39 million on first quarter 2010 events and
$83 million on prior years' events.
This compares to catastrophe losses of $818 million for the second quarter of 2009.
Catastrophe losses added 9.8 points to the combined ratio
during the second quarter of 2010. Although lower than the
record second quarter impact in 2009 of 12.5 points, it was 3.2
points higher than Allstate's 19-year average for a second quarter
of 6.6 points.
Allstate brand standard auto premiums written* increased 1.9%
for the second quarter of 2010 compared to the prior year second
quarter, due to a 3.3% increase in average premium. Increased
average premium was offset by a 1.7% decline in policies in force
as the rate of new business was not sufficient to overcome the
business lost at renewal. Standard auto retention was
comparable to the prior year second quarter at 89.0 despite a
slight decline in Allstate's customer loyalty index score during
the quarter. New issued applications increased 0.4% compared
to the prior year second quarter. The Allstate brand standard
auto combined ratio was 94.5, a decline of 0.4 points from the
second quarter of 2009, due to growth in earned premiums as well as
favorable prior year reserve reestimates.
Allstate brand homeowners premiums written for the second
quarter of 2010 increased 2.2% compared to the same period a year
ago, as a 6.1% increase in average premium was partly offset by a
4.0% decline in policies in force. The combined ratio was
104.4 in the second quarter of 2010 compared to 116.3 in the second
quarter a year ago, reflecting lower catastrophe losses and lower
non-catastrophe claim costs. Rate increases averaging 11.3%
in 14 states were approved during the second quarter, reflecting
actions to improve returns and lessen the volatility of the
homeowners results.
Allstate Financial Strategy Gaining Traction
Allstate Financial made significant progress on reinventing its
business model during the second quarter. The goals are to
produce higher returns, reduce concentrations in products with
returns dependent on investment spread, and serve Allstate
customers by focusing on Allstate agencies and expanding Allstate
Workplace Division.
Premiums and deposits* on mortality and morbidity (underwritten)
products increased 12.1% when compared to the second quarter of
2009, including increases in policies sold through the Allstate
Workplace Division and Allstate agencies. Consistent with the
strategy, premiums and deposits on fixed annuity sales declined by
60.2% compared to the prior year period.
Allstate Financial operating income was $125 million in the second quarter of 2010
compared to $65 million in the prior
year second quarter. The increase was due to lower
amortization of deferred acquisition costs (DAC) and a higher
investment spread, partly offset by a lower benefit spread.
DAC amortization declined primarily due to a re-estimation of
reserves and lower amortization on annuities. The investment
spread increased to $134 million in
the second quarter of 2010 from $63
million in the prior year second quarter. The change
was due to lower net investment income being more than offset by
decreased interest credited to contractholder funds, which includes
lower amortization of deferred sales inducements. The benefit
spread declined 24.4% from the prior year second quarter due to the
re-estimation of reserves and adverse mortality experience, partly
offset by growth in accident and health products. The
re-estimation of reserves related to the use of refined policy
level information and assumptions for interest-sensitive life
insurance and immediate annuities, resulting in a net reserve
increase of $27 million, after-tax,
and a decrease in DAC amortization of $32
million, after-tax, for a net favorable impact to operating
income of $5 million, after-tax.
Allstate Financial reported a net loss of $107 million in the second quarter of 2010
compared to net income of $19 million
in the 2009 second quarter. The second quarter of 2010 net
loss reflected $226 million of
after-tax realized capital losses including the impact of related
deferred acquisition costs and deferred sales inducements.
The second quarter of 2009 reflected an after-tax realized
capital loss of $49 million,
including the impact of deferred acquisition costs and deferred
sales inducements.
Proactive Investment Strategies Provide Returns
Allstate's consolidated investment portfolio was $99.9 billion at June 30,
2010, slightly lower than at March
31, 2010, as improved valuations and operating cash flows
were offset by reductions in Allstate Financial's spread-based
business. Valuation increases were primarily driven by the
effect of declining interest rates on fixed income securities, and
resulted in an improvement of $1.2
billion in the net unrealized position during the second
quarter. Allstate's net unrealized gain at June 30, 2010 was $400
million, pre-tax, compared to a net unrealized loss of
$849 million, pre-tax, at
March 31, 2010 and a net unrealized
loss of $7.3 billion, pre-tax, at
June 30, 2009.
Net realized capital loss for the second quarter of 2010 was
$451 million, pre-tax, compared to a
net realized capital gain of $328
million in the prior year second quarter, with derivatives
being responsible for the majority of the $779 million difference. Derivative net
losses totaled $310 million in the
second quarter of 2010 compared to a gain of $419 million in the second quarter of 2009,
driven primarily by Allstate's risk management actions. Net
realized capital loss for the second quarter of 2010 also reflected
$239 million of impairment
write-downs and $67 million of intent
write-downs primarily related to residential and commercial real
estate exposure, partly offset by net realized gains of
$145 million from sales.
Derivative net losses were the result of interest rate and
equity market declines. Declining interest rates resulted in
$259 million of losses from
Allstate's risk management actions. However, the loss was
less than the increase in fixed income valuations during the
period. Declining equity markets resulted in derivative
losses of $106 million from equity
exposures embedded in fixed income securities, partly offset by
$82 million in gains from equity
market hedges.
As part of the company's ongoing strategy to manage exposure to
certain portfolio segments, reductions of municipal fixed income
securities totaled $1.6 billion of
amortized cost and commercial real estate totaled $966 million of amortized cost during the second
quarter of 2010. In addition, a lower allocation to equity
securities was maintained while the market experienced a
significant downturn in the quarter.
Net investment income for the second quarter of 2010 was
$1.0 billion, 5.3% less than the
second quarter of 2009 and consistent with the first quarter of
2010. The decline from the prior year second quarter
primarily resulted from lower short-term interest rates, risk
reduction actions related to municipal bonds and commercial real
estate, and duration-shortening actions taken to protect the
portfolio from rising interest rates. Net investment income
in the Property-Liability portfolio totaled $310 million in the second quarter of 2010, a
7.2% decline from the second quarter of 2009, but a 2.0% increase
from the first quarter of 2010. Allstate Financial's net
investment income was $723 million, a
5.4% decline from the second quarter of 2009 and a 1.1% decline
from the first quarter of 2010.
Strong Capital Position
"The combination of our proactive strategies and favorable
investment results improved book value," said Don Civgin, senior vice president and chief
financial officer.
Book value per share grew to $33.24 at June 30,
2010 compared to $32.26 at
March 31, 2010 and $27.87 at June 30,
2009. The book value increases reflected higher
shareholders' equity, primarily resulting from improved investment
valuations. Statutory surplus at June
30, 2010 was an estimated $14.9
billion for Allstate Insurance Company, including
$3.2 billion at Allstate Life
Insurance Company. This compares to statutory surplus of
$15.4 billion for Allstate Insurance
Company at March 31, 2010 and
$13.8 billion at June 30, 2009. The statutory surplus
reduction from March 31, 2010 to
June 30, 2010 includes a $200 million dividend from Allstate Insurance
Company to the holding company. A total of $3.1 billion in deployable assets were available
at the holding company level at June 30,
2010.
Visit www.allstateinvestors.com to view additional information
about Allstate's second quarter results, including a webcast of its
quarterly conference call. The conference call will be held
at 9 a.m. ET on Thursday, August 5, 2010.
The Allstate Corporation (NYSE: ALL) is the nation's largest
publicly held personal lines insurer. Widely known through
the "You're In Good Hands With Allstate®" slogan, Allstate is
reinventing protection and retirement to help more than 17 million
households insure what they have today and better prepare for
tomorrow. Consumers access Allstate insurance products (auto,
home, life and retirement) and services through Allstate agencies,
independent agencies, and Allstate exclusive financial
representatives in the U.S. and Canada, as well as via www.allstate.com and
1-800 Allstate®.
THE ALLSTATE CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
($ in
millions, except per share data)
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
(unaudited)
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Property-liability insurance premiums
|
$
|
6,513
|
$
|
6,560
|
$
|
13,016
|
$
|
13,142
|
|
Life
and annuity premiums and contract charges
|
|
545
|
|
494
|
|
1,089
|
|
978
|
|
Net
investment income
|
|
1,049
|
|
1,108
|
|
2,099
|
|
2,284
|
|
Realized capital gains and losses:
|
|
|
|
|
|
|
|
|
|
Total other-than-temporary
impairment losses
|
|
(288)
|
|
(471)
|
|
(538)
|
|
(1,196)
|
|
Portion of loss recognized in
other comprehensive income
|
|
(18)
|
|
154
|
|
(23)
|
|
154
|
|
Net other-than-temporary
impairment losses recognized in earnings
|
|
(306)
|
|
(317)
|
|
(561)
|
|
(1,042)
|
|
Sales and other realized capital
gains and losses
|
|
(145)
|
|
645
|
|
(238)
|
|
1,011
|
|
Total realized capital gains and
losses
|
|
(451)
|
|
328
|
|
(799)
|
|
(31)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,656
|
|
8,490
|
|
15,405
|
|
16,373
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
Property-liability insurance claims and claims expense
|
|
4,714
|
|
5,002
|
|
9,506
|
|
9,722
|
|
Life
and annuity contract benefits
|
|
485
|
|
407
|
|
927
|
|
794
|
|
Interest credited to contractholder funds
|
|
450
|
|
561
|
|
913
|
|
1,140
|
|
Amortization of deferred policy acquisition costs
|
|
949
|
|
1,229
|
|
1,963
|
|
2,626
|
|
Operating costs and expenses
|
|
789
|
|
702
|
|
1,618
|
|
1,503
|
|
Restructuring and related charges
|
|
13
|
|
32
|
|
24
|
|
77
|
|
Interest expense
|
|
92
|
|
97
|
|
184
|
|
185
|
|
|
|
7,492
|
|
8,030
|
|
15,135
|
|
16,047
|
|
Gain on
disposition of operations
|
|
2
|
|
1
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income tax expense
|
|
166
|
|
461
|
|
273
|
|
330
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
21
|
|
72
|
|
8
|
|
215
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
145
|
$
|
389
|
$
|
265
|
$
|
115
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share -
Basic
|
$
|
0.27
|
$
|
0.72
|
$
|
0.49
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares -
Basic
|
|
540.7
|
|
539.8
|
|
540.4
|
|
539.3
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share -
Diluted
|
$
|
0.27
|
$
|
0.72
|
$
|
0.49
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares -
Diluted
|
|
543.0
|
|
540.6
|
|
542.4
|
|
540.1
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
share
|
$
|
0.20
|
$
|
0.20
|
$
|
0.40
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
THE
ALLSTATE CORPORATION
SEGMENT RESULTS
|
|
|
|
|
|
|
|
($ in millions, except
ratios)
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Property-Liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
written
|
$
|
6,640
|
$
|
6,615
|
$
|
12,898
|
$
|
12,884
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums earned
|
$
|
6,513
|
$
|
6,560
|
$
|
13,016
|
$
|
13,142
|
|
Claims and claims
expense
|
|
(4,714)
|
|
(5,002)
|
|
(9,506)
|
|
(9,722)
|
|
Amortization of deferred
policy acquisition costs
|
|
(914)
|
|
(940)
|
|
(1,839)
|
|
(1,889)
|
|
Operating costs and
expenses
|
|
(664)
|
|
(591)
|
|
(1,368)
|
|
(1,269)
|
|
Restructuring and related
charges
|
|
(14)
|
|
(30)
|
|
(25)
|
|
(57)
|
|
Underwriting
income (loss)
|
|
207
|
|
(3)
|
|
278
|
|
205
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
310
|
|
334
|
|
614
|
|
678
|
|
Periodic settlements and
accruals on non-hedge derivative instruments
|
|
(1)
|
|
(3)
|
|
(2)
|
|
(6)
|
|
Income tax expense on
operations
|
|
(148)
|
|
(39)
|
|
(236)
|
|
(174)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
368
|
|
289
|
|
654
|
|
703
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized capital gains and
losses, after-tax
|
|
(69)
|
|
131
|
|
(192)
|
|
(185)
|
|
Reclassification of
periodic settlements and accruals on non-hedge
|
|
|
|
|
|
|
|
|
|
derivative instruments,
after-tax
|
|
--
|
|
2
|
|
1
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
299
|
$
|
422
|
$
|
463
|
$
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
Catastrophe
losses
|
$
|
636
|
$
|
818
|
$
|
1,284
|
$
|
1,334
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
ratios:
|
|
|
|
|
|
|
|
|
|
Claims and claims
expense ratio
|
|
72.4
|
|
76.2
|
|
73.1
|
|
74.0
|
|
Expense
ratio
|
|
24.4
|
|
23.8
|
|
24.8
|
|
24.4
|
|
Combined
ratio
|
|
96.8
|
|
100.0
|
|
97.9
|
|
98.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
catastrophe losses on combined ratio
|
|
9.8
|
|
12.5
|
|
9.9
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of prior
year reserve reestimates on combined ratio
|
|
(2.3)
|
|
0.3
|
|
(1.3)
|
|
(0.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
catastrophe losses included in prior year reserve reestimates
on
|
|
|
|
|
|
|
|
|
|
combined ratio
|
|
(1.2)
|
|
--
|
|
(0.7)
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
Discontinued Lines and Coverages on combined ratio
|
|
--
|
|
--
|
|
0.1
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
Allstate
Financial
|
|
|
|
|
|
|
|
|
|
Investments
|
$
|
61,804
|
$
|
59,861
|
$
|
61,804
|
$
|
59,861
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and
deposits
|
$
|
1,018
|
$
|
1,399
|
$
|
2,123
|
$
|
2,932
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and contract
charges
|
$
|
545
|
$
|
494
|
$
|
1,089
|
$
|
978
|
|
Net investment
income
|
|
723
|
|
764
|
|
1,454
|
|
1,583
|
|
Periodic settlements and
accruals on non-hedge derivative instruments
|
|
11
|
|
(3)
|
|
28
|
|
(2)
|
|
Contract
benefits
|
|
(485)
|
|
(407)
|
|
(927)
|
|
(794)
|
|
Interest credited to
contractholder funds
|
|
(450)
|
|
(520)
|
|
(913)
|
|
(1,062)
|
|
Amortization of deferred
policy acquisition costs
|
|
(41)
|
|
(130)
|
|
(99)
|
|
(239)
|
|
Operating costs and
expenses
|
|
(116)
|
|
(105)
|
|
(236)
|
|
(226)
|
|
Restructuring and related
charges
|
|
1
|
|
(2)
|
|
1
|
|
(20)
|
|
Income tax expense on
operations
|
|
(63)
|
|
(26)
|
|
(133)
|
|
(68)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
125
|
|
65
|
|
264
|
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized capital gains and
losses, after-tax
|
|
(230)
|
|
82
|
|
(335)
|
|
(88)
|
|
DAC and DSI accretion
(amortization) relating to realized capital gains
|
|
|
|
|
|
|
|
|
|
and losses,
after-tax
|
|
4
|
|
(131)
|
|
2
|
|
(150)
|
|
DAC and DSI unlocking
relating to realized capital gains and losses, after-tax
|
--
|
|
--
|
|
(18)
|
|
(224)
|
|
Reclassification of
periodic settlements and accruals on non-hedge
|
|
|
|
|
|
|
|
|
|
derivative
instruments, after-tax
|
|
(7)
|
|
2
|
|
(18)
|
|
1
|
|
Gain on disposition of
operations, after-tax
|
|
1
|
|
1
|
|
2
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(107)
|
$
|
19
|
$
|
(103)
|
$
|
(308)
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
$
|
16
|
$
|
10
|
$
|
31
|
$
|
23
|
|
Operating costs and
expenses
|
|
(101)
|
|
(103)
|
|
(198)
|
|
(193)
|
|
Income tax benefit on
operations
|
|
33
|
|
36
|
|
65
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(52)
|
|
(57)
|
|
(102)
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized capital gains and
losses, after-tax
|
|
5
|
|
5
|
|
7
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(47)
|
$
|
(52)
|
$
|
(95)
|
$
|
(99)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
income
|
$
|
145
|
$
|
389
|
$
|
265
|
$
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE ALLSTATE CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
|
|
($ in millions, except par value
data)
|
|
June 30,
2010
|
|
December 31,
2009
|
|
Assets
|
|
(unaudited)
|
|
|
|
Investments:
|
|
|
|
|
|
Fixed income
securities, at fair value (amortized cost $81,425 and
$81,243)
|
$
|
81,925
|
$
|
78,766
|
|
Equity securities, at fair value
(cost $3,356 and $4,845)
|
|
3,254
|
|
5,024
|
|
Mortgage loans
|
|
7,173
|
|
7,935
|
|
Limited partnership
interests
|
|
3,119
|
|
2,744
|
|
Short-term, at fair value
(amortized cost $2,414 and $3,056)
|
|
2,414
|
|
3,056
|
|
Other
|
|
2,058
|
|
2,308
|
|
Total investments
|
|
99,943
|
|
99,833
|
|
Cash
|
|
711
|
|
612
|
|
Premium installment receivables,
net
|
|
4,830
|
|
4,839
|
|
Deferred policy acquisition
costs
|
|
5,003
|
|
5,470
|
|
Reinsurance recoverables,
net
|
|
6,537
|
|
6,355
|
|
Accrued investment
income
|
|
851
|
|
864
|
|
Deferred income taxes
|
|
1,301
|
|
1,870
|
|
Property and equipment,
net
|
|
935
|
|
990
|
|
Goodwill
|
|
874
|
|
875
|
|
Other assets
|
|
1,822
|
|
1,872
|
|
Separate Accounts
|
|
8,003
|
|
9,072
|
|
Total assets
|
$
|
130,810
|
$
|
132,652
|
|
Liabilities
|
|
|
|
|
|
Reserve for property-liability
insurance claims and claims expense
|
$
|
19,434
|
$
|
19,167
|
|
Reserve for life-contingent
contract benefits
|
|
13,483
|
|
12,910
|
|
Contractholder funds
|
|
49,443
|
|
52,582
|
|
Unearned premiums
|
|
9,684
|
|
9,822
|
|
Claim payments
outstanding
|
|
733
|
|
742
|
|
Other liabilities and accrued
expenses
|
|
6,054
|
|
5,726
|
|
Long-term debt
|
|
5,909
|
|
5,910
|
|
Separate Accounts
|
|
8,003
|
|
9,072
|
|
Total liabilities
|
|
112,743
|
|
115,931
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Preferred stock, $1 par value,
25 million shares authorized, none issued
|
|
--
|
|
--
|
|
Common stock, $.01 par value,
2.0 billion shares authorized and 900 million issued, 538 million
and 537 million shares outstanding
|
|
9
|
|
9
|
|
Additional capital
paid-in
|
|
3,155
|
|
3,172
|
|
Retained income
|
|
31,552
|
|
31,492
|
|
Deferred ESOP expense
|
|
(44)
|
|
(47)
|
|
Treasury stock, at cost (362
million and 363 million shares)
|
|
(15,760)
|
|
(15,828)
|
|
Accumulated other comprehensive
income:
|
|
|
|
|
|
Unrealized net capital gains and
losses:
|
|
|
|
|
|
Unrealized net capital losses on
fixed income securities with OTTI
|
|
(332)
|
|
(441)
|
|
Other unrealized net capital
gains and losses
|
|
588
|
|
(1,072)
|
|
Unrealized adjustment to DAC,
DSI and insurance reserves
|
|
72
|
|
643
|
|
Total
unrealized net capital gains and losses
|
|
328
|
|
(870)
|
|
Unrealized foreign
currency translation adjustments
|
|
43
|
|
46
|
|
Unrecognized
pension and other postretirement benefit cost
|
|
(1,244)
|
|
(1,282)
|
|
Total accumulated other
comprehensive loss
|
|
(873)
|
|
(2,106)
|
|
Total shareholders'
equity
|
|
18,039
|
|
16,692
|
|
Noncontrolling
interest
|
|
28
|
|
29
|
|
Total equity
|
|
18,067
|
|
16,721
|
|
Total liabilities and
equity
|
$
|
130,810
|
$
|
132,652
|
|
|
|
|
|
|
|
|
THE ALLSTATE CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
($ in
millions)
|
|
Six months ended
June 30,
|
|
|
|
2010
|
|
2009
|
|
Cash flows
from operating activities
|
|
(unaudited)
|
|
Net
income
|
$
|
265
|
$
|
115
|
|
Adjustments to reconcile net
income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation, amortization and
other non-cash items
|
|
26
|
|
(86)
|
|
Realized capital gains and
losses
|
|
799
|
|
31
|
|
Gain on disposition of
operations
|
|
(3)
|
|
(4)
|
|
Interest credited to
contractholder funds
|
|
913
|
|
1,140
|
|
Changes in:
|
|
|
|
|
|
Policy benefits and other
insurance reserves
|
|
306
|
|
(148)
|
|
Unearned premiums
|
|
(135)
|
|
(283)
|
|
Deferred policy acquisition
costs
|
|
(70)
|
|
548
|
|
Premium installment receivables,
net
|
|
9
|
|
55
|
|
Reinsurance recoverables,
net
|
|
(206)
|
|
(133)
|
|
Income taxes
|
|
74
|
|
1,359
|
|
Other operating assets and
liabilities
|
|
116
|
|
(112)
|
|
Net cash
provided by operating activities
|
|
2,094
|
|
2,482
|
|
Cash flows
from investing activities
|
|
|
|
|
|
Proceeds
from sales:
|
|
|
|
|
|
Fixed income
securities
|
|
9,114
|
|
8,856
|
|
Equity securities
|
|
3,046
|
|
3,547
|
|
Limited partnership interests
|
|
278
|
|
214
|
|
Mortgage loans
|
|
44
|
|
141
|
|
Other investments
|
|
62
|
|
262
|
|
Investment
collections:
|
|
|
|
|
|
Fixed income
securities
|
|
2,391
|
|
2,658
|
|
Mortgage loans
|
|
638
|
|
598
|
|
Other investments
|
|
44
|
|
65
|
|
Investment
purchases:
|
|
|
|
|
|
Fixed income
securities
|
|
(11,900)
|
|
(12,424)
|
|
Equity securities
|
|
(1,501)
|
|
(4,207)
|
|
Limited partnership
interests
|
|
(616)
|
|
(268)
|
|
Mortgage loans
|
|
(10)
|
|
(14)
|
|
Other investments
|
|
(79)
|
|
(41)
|
|
Change in
short-term investments, net
|
|
439
|
|
3,167
|
|
Change in
other investments, net
|
|
(128)
|
|
(80)
|
|
Disposition
of operations
|
|
--
|
|
12
|
|
Purchases of
property and equipment, net
|
|
(69)
|
|
(104)
|
|
Net cash provided by investing
activities
|
|
1,753
|
|
2,382
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Proceeds
from issuance of long-term debt
|
|
--
|
|
1,000
|
|
Repayment of
long-term debt
|
|
(1)
|
|
(1)
|
|
Contractholder fund
deposits
|
|
1,567
|
|
2,450
|
|
Contractholder fund
withdrawals
|
|
(5,112)
|
|
(7,736)
|
|
Dividends
paid
|
|
(215)
|
|
(327)
|
|
Treasury
stock purchases
|
|
(5)
|
|
(3)
|
|
Shares
reissued under equity incentive plans, net
|
|
25
|
|
--
|
|
Excess tax
benefits on share-based payment arrangements
|
|
(4)
|
|
(6)
|
|
Other
|
|
(3)
|
|
11
|
|
Net cash used in financing
activities
|
|
(3,748)
|
|
(4,612)
|
|
Net increase
in cash
|
|
99
|
|
252
|
|
Cash at
beginning of period
|
|
612
|
|
415
|
|
Cash at end
of period
|
$
|
711
|
$
|
667
|
|
|
|
|
|
|
|
|
Definitions of Non-GAAP and Operating Measures
We believe that investors' understanding of Allstate's
performance is enhanced by our disclosure of the following non-GAAP
and operating financial measures. Our methods for calculating
these measures may differ from those used by other companies and
therefore comparability may be limited.
Operating income is net income (loss), excluding:
- realized capital gains and losses, after-tax, except for
periodic settlements and accruals on non-hedge derivative
instruments, which are reported with realized capital gains and
losses but included in operating income,
- amortization of DAC and DSI, to the extent they resulted from
the recognition of certain realized capital gains and losses,
- gain (loss) on disposition of operations, after-tax, and
- adjustments for other significant non-recurring, infrequent or
unusual items, when (a) the nature of the charge or gain is such
that it is reasonably unlikely to recur within two years, or (b)
there has been no similar charge or gain within the prior two
years.
Net income (loss) is the GAAP measure that is most directly
comparable to operating income.
We use operating income as an important measure to evaluate our
results of operations. We believe that the measure provides
investors with a valuable measure of the company's ongoing
performance because it reveals trends in our insurance and
financial services business that may be obscured by the net effect
of realized capital gains and losses, gain (loss) on disposition of
operations and adjustments for other significant non-recurring,
infrequent or unusual items. Realized capital gains and
losses and gain (loss) on disposition of operations may vary
significantly between periods and are generally driven by business
decisions and external economic developments such as capital market
conditions, the timing of which is unrelated to the insurance
underwriting process. Consistent with our intent to protect
results or earn additional income, operating income includes
periodic settlements and accruals on certain derivative instruments
that are reported in realized capital gains and losses because they
do not qualify for hedge accounting or are not designated as hedges
for accounting purposes. These instruments are used for
economic hedges and to replicate fixed income securities, and by
including them in operating income, we are appropriately reflecting
their trends in our performance and in a manner consistent with the
economically hedged investments, product attributes (e.g., net
investment income and interest credited to contractholder funds) or
replicated investments. Non-recurring items are excluded
because, by their nature, they are not indicative of our business
or economic trends. Accordingly, operating income excludes
the effect of items that tend to be highly variable from period to
period and highlights the results from ongoing operations and the
underlying profitability of our business. A byproduct of
excluding these items to determine operating income is the
transparency and understanding of their significance to net income
variability and profitability while recognizing these or similar
items may recur in subsequent periods. Operating income is
used by management along with the other components of net income
(loss) to assess our performance. We use adjusted measures of
operating income and operating income per diluted share in
incentive compensation. Therefore, we believe it is useful
for investors to evaluate net income (loss), operating income and
their components separately and in the aggregate when reviewing and
evaluating our performance. We note that investors, financial
analysts, financial and business media organizations and rating
agencies utilize operating income results in their evaluation of
our and our industry's financial performance and in their
investment decisions, recommendations and communications as it
represents a reliable, representative and consistent measurement of
the industry and the company and management's performance.
We note that the price to earnings multiple commonly
used by insurance investors as a forward-looking valuation
technique uses operating income as the denominator. Operating
income should not be considered as a substitute for net income
(loss) and does not reflect the overall profitability of our
business.
The following tables reconcile operating income and net income
(loss) for the three months and six months ended June 30, 2010 and 2009.
|
|
For the three months
ended
June 30,
|
|
Property-Liability
|
|
Allstate
Financial
|
|
Consolidated
|
|
Per diluted share
|
|
($ in millions, except per share
data)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Operating income
|
$
|
368
|
$
|
289
|
$
|
125
|
$
|
65
|
$
|
441
|
$
|
297
|
$
|
0.81
|
$
|
0.55
|
|
Realized capital gains and
losses
|
|
(106)
|
|
201
|
|
(353)
|
|
121
|
|
(451)
|
|
328
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
37
|
|
(70)
|
|
123
|
|
(39)
|
|
157
|
|
(110)
|
|
|
|
|
|
Realized capital gains and
losses, after-tax
|
|
(69)
|
|
131
|
|
(230)
|
|
82
|
|
(294)
|
|
218
|
|
(0.53)
|
|
0.40
|
|
DAC and DSI accretion
(amortization) relating to realized capital gains and losses,
after-tax
|
|
--
|
|
--
|
|
4
|
|
(131)
|
|
4
|
|
(131)
|
|
--
|
|
(0.24)
|
|
DAC and DSI unlocking relating
to realized capital gains and losses, after-tax
|
|
--
|
|
--
|
|
--
|
|
--
|
|
--
|
|
--
|
|
--
|
|
--
|
|
Reclassification of periodic
settlements and accruals on non-hedge derivative instruments,
after-tax
|
|
--
|
|
2
|
|
(7)
|
|
2
|
|
(7)
|
|
4
|
|
(0.01)
|
|
0.01
|
|
Gain on
disposition of operations, after-tax
|
|
--
|
|
--
|
|
1
|
|
1
|
|
1
|
|
1
|
|
--
|
|
--
|
|
Net income (loss)
|
$
|
299
|
$
|
422
|
$
|
(107)
|
$
|
19
|
$
|
145
|
$
|
389
|
$
|
0.27
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
June 30,
|
|
Property-Liability
|
|
Allstate
Financial
|
|
Consolidated
|
|
Per diluted share
|
|
($ in millions, except per share
data)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Operating income
|
$
|
654
|
$
|
703
|
$
|
264
|
$
|
150
|
$
|
816
|
$
|
751
|
$
|
1.50
|
$
|
1.39
|
|
Realized capital gains and
losses
|
|
(296)
|
|
(113)
|
|
(515)
|
|
78
|
|
(799)
|
|
(31)
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
104
|
|
(72)
|
|
180
|
|
(166)
|
|
279
|
|
(239)
|
|
|
|
|
|
Realized capital gains and
losses, after-tax
|
|
(192)
|
|
(185)
|
|
(335)
|
|
(88)
|
|
(520)
|
|
(270)
|
|
(0.95)
|
|
(0.50)
|
|
DAC and DSI accretion
(amortization) relating to realized capital gains and losses,
after-tax
|
|
--
|
|
--
|
|
2
|
|
(150)
|
|
2
|
|
(150)
|
|
--
|
|
(0.28)
|
|
DAC and DSI unlocking relating
to realized capital gains and losses, after-tax
|
|
--
|
|
--
|
|
(18)
|
|
(224)
|
|
(18)
|
|
(224)
|
|
(0.03)
|
|
(0.42)
|
|
Reclassification of periodic
settlements and accruals on non-hedge derivative instruments,
after-tax
|
|
1
|
|
4
|
|
(18)
|
|
1
|
|
(17)
|
|
5
|
|
(0.03)
|
|
0.01
|
|
Gain on
disposition of operations, after-tax
|
|
--
|
|
--
|
|
2
|
|
3
|
|
2
|
|
3
|
|
--
|
|
0.01
|
|
Net income (loss)
|
$
|
463
|
$
|
522
|
$
|
(103)
|
$
|
(308)
|
$
|
265
|
$
|
115
|
$
|
0.49
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income (loss) is calculated as premiums
earned, less claims and claims expense ("losses"), amortization of
DAC, operating costs and expenses and restructuring and related
charges as determined using GAAP. Management uses this
measure in its evaluation of the results of operations to analyze
the profitability of our Property-Liability insurance operations
separately from investment results. It is also an integral
component of incentive compensation. It is useful for
investors to evaluate the components of income separately and in
the aggregate when reviewing performance. Net income (loss)
is the most directly comparable GAAP measure. Underwriting
income (loss) should not be considered as a substitute for net
income (loss) and does not reflect the overall profitability of our
business. A reconciliation of Property-Liability underwriting
income (loss) to net income (loss) is provided in the "Segment
Results" page.
Combined ratio excluding the effect of catastrophes and prior
year reserve reestimates ("underlying combined ratio") is a
non-GAAP ratio, which is computed as the difference between three
GAAP operating ratios: the combined ratio, the effect of
catastrophes on the combined ratio and the effect of prior year
non-catastrophe reserve reestimates on the combined ratio.
The most directly comparable GAAP measure is the combined
ratio. We believe that this ratio is useful to investors and
it is used by management to reveal the trends in our
Property-Liability business that may be obscured by catastrophe
losses and prior year reserve reestimates. These catastrophe
losses cause our loss trends to vary significantly between periods
as a result of their incidence of occurrence and magnitude, and can
have a significant impact on the combined ratio. Prior year
reserve reestimates are caused by unexpected loss development on
historical reserves. We believe it is useful for investors to
evaluate these components separately and in the aggregate when
reviewing our underwriting performance. We also provide it to
facilitate a comparison to our outlook on the 2010 combined ratio
excluding the effect of catastrophe losses and prior year reserve
reestimates. The combined ratio excluding the effect of
catastrophes and prior year reserve reestimates should not be
considered a substitute for the combined ratio and does not reflect
the overall underwriting profitability of our business. A
reconciliation of the combined ratio excluding the effect of
catastrophes and prior year reserve reestimates to the combined
ratio is provided in the following table.
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Combined ratio excluding the
effect of catastrophes and prior year reserve reestimates
("underlying combined ratio")
|
88.1
|
|
87.2
|
|
88.6
|
|
88.1
|
|
Effect of catastrophe
losses
|
9.8
|
|
12.5
|
|
9.9
|
|
10.2
|
|
Effect of prior year
non-catastrophe reserve reestimates
|
(1.1)
|
|
0.3
|
|
(0.6)
|
|
0.1
|
|
Combined ratio
|
96.8
|
|
100.0
|
|
97.9
|
|
98.4
|
|
|
|
|
|
|
|
|
|
|
Effect of prior year catastrophe
reserve reestimates
|
(1.2)
|
|
--
|
|
(0.7)
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
|
In this news release, we provide our outlook range on the 2010
combined ratio excluding the effect of catastrophe losses and prior
year reserve reestimates. A reconciliation of this measure to
the combined ratio is not possible on a forward-looking basis
because it is not possible to provide a reliable forecast of
catastrophes. Future prior year reserve reestimates are
expected to be zero because reserves are determined based on our
best estimate of ultimate loss reserves as of the reporting
date.
Book value per share, excluding the impact of unrealized net
capital gains and losses on fixed income securities, is a ratio
that uses a non-GAAP measure. It is calculated by dividing
shareholders' equity after excluding the impact of unrealized net
capital gains and losses on fixed income securities and related
DAC, DSI and life insurance reserves by total shares outstanding
plus dilutive potential shares outstanding. Book value per
share is the most directly comparable GAAP measure.
We use the trend in book value per share, excluding the impact
of unrealized net capital gains and losses on fixed income
securities, in conjunction with book value per share to identify
and analyze the change in net worth attributable to management
efforts between periods. We believe the non-GAAP ratio is
useful to investors because it eliminates the effect of items that
can fluctuate significantly from period to period and are generally
driven by economic developments, primarily capital market
conditions, the magnitude and timing of which are generally not
influenced by management, and we believe it enhances understanding
and comparability of performance by highlighting underlying
business activity and profitability drivers. We note that
book value per share, excluding the impact of unrealized net
capital gains and losses on fixed income securities, is a measure
commonly used by insurance investors as a valuation
technique. Book value per share, excluding the impact of
unrealized net capital gains and losses on fixed income securities,
should not be considered as a substitute for book value per share,
and does not reflect the recorded net worth of our business.
The following table shows the reconciliation.
|
|
($ in millions, except per share
data)
|
|
As of June 30,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
Shareholders'
equity
|
$
|
18,039
|
$
|
15,068
|
|
Denominator:
|
|
|
|
|
|
Shares outstanding and dilutive
potential shares outstanding
|
|
542.7
|
|
540.6
|
|
Book value per share
|
$
|
33.24
|
$
|
27.87
|
|
|
|
|
|
|
|
Book value
per share, excluding the impact of unrealized net capital gains and
losses on fixed income securities
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
Shareholders'
equity
|
$
|
18,039
|
$
|
15,068
|
|
Unrealized net
capital gains and losses on fixed income securities
|
|
398
|
|
(1,988)
|
|
Adjusted shareholders'
equity
|
$
|
17,641
|
$
|
17,056
|
|
Denominator:
|
|
|
|
|
|
Shares outstanding and dilutive
potential shares outstanding
|
|
542.7
|
|
540.6
|
|
Book value
per share, excluding the impact of unrealized net capital gains and
losses on fixed income securities
|
$
|
32.51
|
$
|
31.55
|
|
|
|
|
|
|
|
|
Premiums written is the amount of premiums charged for
policies issued during a fiscal period. Premiums earned is a
GAAP measure. Premiums are considered earned and are included
in financial results on a pro-rata basis over the policy period.
The portion of premiums written applicable to the unexpired
terms of the policies is recorded as unearned premiums on our
Condensed Consolidated Statements of Financial Position. A
reconciliation of premiums written to premiums earned is presented
in the following table.
|
|
($ in millions)
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Premiums written
|
$
|
6,640
|
$
|
6,615
|
$
|
12,898
|
$
|
12,884
|
|
(Increase)
decrease in Property-Liability unearned premiums
|
|
(110)
|
|
(70)
|
|
135
|
|
267
|
|
Other
|
|
(17)
|
|
15
|
|
(17)
|
|
(9)
|
|
Premiums earned
|
$
|
6,513
|
$
|
6,560
|
$
|
13,016
|
$
|
13,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and deposits is an operating measure that we use
to analyze production trends for Allstate Financial sales. It
includes premiums on insurance policies and annuities and all
deposits and other funds received from customers on deposit-type
products including the net new deposits of Allstate Bank, which we
account for under GAAP as increases to liabilities rather than as
revenue.
The following table illustrates where premiums and deposits are
reflected in the condensed consolidated financial statements.
|
|
($ in millions)
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Total premiums and
deposits
|
$
|
1,018
|
$
|
1,399
|
$
|
2,123
|
$
|
2,932
|
|
Deposits to contractholder
funds
|
|
(739)
|
|
(1,152)
|
|
(1,567)
|
|
(2,450)
|
|
Deposits to separate
accounts
|
|
(25)
|
|
(28)
|
|
(51)
|
|
(56)
|
|
Change in unearned premiums and
other adjustments
|
|
32
|
|
29
|
|
70
|
|
68
|
|
Life and annuity
premiums (1)
|
$
|
286
|
$
|
248
|
$
|
575
|
$
|
494
|
|
(1) Life and annuity contract
charges in the amount of $259 million and $246 million for the
three months ended
June 30, 2010 and 2009,
respectively, and $514 million and $484 million for the six months
ended June 30, 2010
and 2009, respectively, which
are also revenues recognized for GAAP, have been excluded from the
table above,
but are a component of the
Condensed Consolidated Statements of Operations line item life and
annuity premiums
and contract charges.
|
|
|
|
|
|
|
|
|
|
|
Forward-Looking Statements and Risk Factors
This news release contains forward-looking statements about our
outlook for the combined ratio excluding the effect of catastrophes
and prior year reserve reestimates for 2010. These statements
are subject to the Private Securities Litigation Reform Act of 1995
and are based on management's estimates, assumptions and
projections. Actual results may differ materially from those
projected based on the risk factors described below.
- Premiums written and premiums earned, the denominator of the
underlying combined ratio, may be materially less than projected.
Policyholder attrition may be greater than anticipated
resulting in a lower amount of insurance in force.
- Unanticipated increases in the severity or frequency of
standard auto insurance claims may adversely affect our
underwriting results. Changes in the severity or frequency of
claims may affect the profitability of our Allstate Protection
segment. Changes in bodily injury claim severity are driven
primarily by inflation in the medical sector of the economy and
litigation. Changes in auto physical damage claim severity
are driven primarily by inflation in auto repair costs, auto parts
prices and used car prices. The short-term level of claim
frequency we experience may vary from period to period and may not
be sustainable over the longer term. A decline in gas prices,
increase in miles driven, and higher unemployment are examples of
factors leading to a short-term frequency change. A
significant long-term increase in claim frequency could have an
adverse effect on our underwriting results.
We undertake no obligation to publicly correct or update any
forward-looking statements. This news release contains
unaudited financial information.
SOURCE The Allstate Corporation
Copyright g. 4 PR Newswire