Allstate 2006 Annual Report Download

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“Ichoose
Allstate.”
2006 Summary Annual Report
The Allstate Corporation
— Allstate customer Welvin Williams, of Woodstock, Georgia,
pictured with his granddaughter, Kaylee, is grateful Allstate
does what’s best for his family and business.

Table of contents

  • Page 1
    The Allstate Corporation 2006 Summary Annual Report " Ichoose  Allstate." -Allstate customer Welvin Williams, of Woodstock, Georgia, pictured with his granddaughter, Kaylee, is grateful Allstate does what's best for his family and business.

  • Page 2
    ... years, and we've become family. So when I started my commercial cleaning business 10 years ago, I sat down with my agent, Vince Green, to find the best policies and programs for my family and business. In addition to commercial insurance, we set up a life insurance policy to protect my wife from my...

  • Page 3
    I choose Allstate. "I want the best protection I can have." I choose Allstate. -Dr. Billie Minton and her niece, Stephanie Minton, will always remember Allstate's support following Stephanie's car accident.

  • Page 4
    ... my driver's permit. As my life changed, my Allstate agent, Rikki Rhoten, showed me how to protect my property, my businesses, my family and my financial future. Recently, she told me about Allstate® Your Choice Auto insurance and recommended the Platinum protection because she knows I drive newer...

  • Page 5
    I choose Allstate. "I got a brand new car-and firstclass service." -Allstate customer Larry McClure, of Portland, Oregon, made a smart choice when he signed up for Allstate® Your Choice Auto insurance with the new car replacement option. Larry and Homer are now back on the road, and traveling in ...

  • Page 6
    ... I bought my new, limited edition car, I changed insurance companies and made sure I got the protection I need. My agent, Albert McClure, explained how Allstate® Your Choice Auto with new car replacement would protect me from depreciation and make the claims process easy. He was right. Nine months...

  • Page 7
    ...Revenues Increased 1.2 percent, from $35.4 billion in 2005 to $35.8 billion in 2006 Return on Equity Increased 15.4 points, from 8.4 percent in 2005 to 23.8 percent in 2006 Book Value per Share, Excluding the Impact of Unrealized Net Capital Gains on Fixed Income Securities* Increased 14.6 percent...

  • Page 8
    ... program now complete, Allstate's board authorized us to acquire an additional $3 billion in shares through the first quarter of 2008. Total Shareholder Returns Since Dividends per Share IPO on 6/3/1993 (In dollars, adjusted for stock split in 1998) 482% 1.40 350% 282% 297% S&P Insurance...

  • Page 9
    ... own a portion of an American icon that is more than a financial services company. Allstate is a company of caring individuals who help our customers obtain financial predictability, security and safety in an uncertain world. This team delivered outstanding results in 2006. We continued to grow by...

  • Page 10
    ... our dedicated team of associates performed extremely well by: • Growing and strengthening the Allstate brand • Offering innovative products in property-casualty and financial services • Unveiling the next generation of claim processes and • Raising customer satisfaction Upon that foundation...

  • Page 11
    ... a huge competitive advantage for us. Allstaters are honest, smart and caring people who treat others with dignity and respect. Every employee completes ethics and compliance training, which helps to protect and enhance the Allstate brand. Allstate is not simply a leading brand-it is the brand of...

  • Page 12
    ...tenure, we have moved smoothly to Tom's leadership, continuing the professional values we hold fundamental while searching for new business opportunities. No CEO can do it alone. I'm proud to be among the 70,000 Allstaters that will now work with Tom. Knowing our team as I do, I am confident that we...

  • Page 13
    I choose Allstate. " Iwelcome everychanceto sitdownwith customers." -Agency owner Stephanie Hebert, of Houma, Louisiana, won Allstate's Ray Lynch Award in 2006 for exceptional community service. I choose Allstate.

  • Page 14
    ... all their options and help them find the protection that suits them best. We also invite them to take advantage of the programs we have in place. Teen drivers save money by taking the defensive driving class we sponsor twice a month. Elderly customers love our drive-through window. And many folks...

  • Page 15
    I choose Allstate. "We created a good place to talk." -Roger Francis, an Allstate exclusive agency owner in Aurora, Colorado, redesigned his office to highlight the Allstate brand and create a more customer-friendly environment. I choose Allstate.

  • Page 16
    ... our Good Hands® TV in our lobby. Then, they sit down with licensed agency representatives in a private office to discuss how we can help them protect their assets and make their assets work for them. Customers have responded well to our new look, and so have our employees. Applications have been...

  • Page 17
    I choose Allstate. "I'm helping people build a better future." -Allstate Personal Financial Representative Bob Satterfield from Mount Laurel, New Jersey, helps customers-and children in his community-prepare for a secure financial future. I choose Allstate.

  • Page 18
    ...with agents and serve my community. I work closely with two Allstate agencies that provide direct access to their customers. Each time they write a new policy, they suggest that clients talk to me about how to protect their financial assets. I also serve on Allstate's National Advisory Board, where...

  • Page 19
    ... orabetter opportunity." -Allstate employee Kevin Generally, of Kansas City, Missouri, is spending his second year in the Talent Acceleration Program. His first-hand knowledge of customers is helping Allstate find new and better ways to reach out to customers, support agents and improve business...

  • Page 20
    ...Every Allstate employee has the opportunity to follow a personal development plan. Allstate offers its associates flexible ways to learn new skills. In 2006, we invested more than $93 million in professional education and training. Tuition Reimbursement TAP Talent Program Acceleration Program Agency...

  • Page 21
    ... Allstate. "I'm learning the business from all angles." -Allstate employee Daniel Guthrie of Lindenhurst, Illinois, has held a variety of positions at Allstate during his 10-year career. His recent experience in an Allstate agency gave him new insights into customers and agents. I choose Allstate...

  • Page 22
    ... relationships with customers, why the claims process is so critical, and how technology is freeing up agents to spend more time with the people who walk through their doors. Next, I'm moving to a position in sales management; learning this side of the business will give me a new set of experiences...

  • Page 23
    I choose Allstate. "I help people in their time of need." -Allstate employee Farrah Goraya of Bolingbrook, Illinois, is a selfproclaimed "customer-experience warrior" who is bringing her focus and customer commitment to different parts of Allstate. I choose Allstate.

  • Page 24
    ... new tools and technologies we're introducing as part of our Next Gen claims system will help them and our customers. In the process, I've developed new financial and leadership skills, made new friends and contacts and learned how vital teamwork is to Allstate's success." Allstate employee Farrah...

  • Page 25
    ...choose Allstate. " I'mdriventohelp teensmakebetter choicesbehind thewheel." -As a member of The Allstate Foundation's National Keep the Drive Crew, Lauren Hashiguchi helps her peers in Oregon and around the country reduce the likelihood of injuries and fatal crashes by developing smart...

  • Page 26
    ... for Highway Safety; Centers for Disease Control and Prevention; National Highway Traffic Safety Administration TakingaStand Allstate takes a strong stand on issues that are important to our customers, the insurance industry and society at large. Safe and smart teen driving is one of them...

  • Page 27
    I choose Allstate. "We help customers follow their dreams." -C-Anne Able and Rita De Castillo of Columbia, South Carolina, work closely with customers to explain why insurance is an important part of their financial welfare and to make sure they have the protection they need. I choose Allstate.

  • Page 28
    ... Allstate. Smart Choices "Insurance is about service. Customers come to us because we listen to them, share in their experiences and become an extension of their family. As a multi-line agency, we can protect their cars and homes, but also their recreational vehicles, businesses and investments...

  • Page 29
    I choose Allstate. "We found a safe haven at the Kingsley House." -Each year, The Kingsley House helps more than 8,000 New Orleans residents of all ages work through times of dramatic change. I choose Allstate.

  • Page 30
    .... In 2006 more than 7,200 residents of 12 parishes throughout Southeast Louisiana participated in its nationally accredited programs. The Kingsley House has helped individuals of all ages connect with essential services and resources that aid their recovery and healing. The Allstate Foundation is...

  • Page 31
    We choose Allstate. We choose Allstate. " Welookforgrowth andvalue." -Don and Rosalie Begley, of Omaha, Nebraska, bought Allstate stock more than a decade ago and consider it an important part of their investment portfolio.

  • Page 32
    ...ChoiceReporting Investors deserve easy access to all the information they need to make well-informed investment decisions. Today, many investors find it more flexible and convenient to go online to evaluate companies and their ongoing performance. Beginning with this year's Annual Report, Allstate...

  • Page 33
    I choose Allstate. "I choose to work for Allstate because I believe in the company's promise, values and its commitment to diversity." -Noemi Muñoz I choose Allstate.

  • Page 34
    ... and civic organizations to lead conversations about diversity, education, economic empowerment and the value of insurance. Today, Allstate is aggressively pursuing business in the multi-cultural marketplace. We plan to continue to focus on and increase the number of households we serve through...

  • Page 35
    I choose Allstate. "Allstate's supplier diversity program gave our business a great start." -Christina Corley President and COO Zones, Inc. I choose Allstate.

  • Page 36
    ...same opportunities Allstate gave us to other woman- and minority-owned businesses. We try to source as many products as possible from that community. We also support supplier diversity by serving on the National Minority Supplier Diversity Council. We've had a great start-and now we're helping other...

  • Page 37
    ... customer premium and fee payments and total investment results. In 2006 Allstate generated record revenues. OperatingIncome* Operating income reveals trends in our business that may be obscured by business decisions and economic developments unrelated to the insurance underwriting process...

  • Page 38
    ...Casualty Claim Service Organization Ronald D. McNeil Senior Vice President, Protection Distribution Eric A. Simonson Senior Vice President and Chief Investment Officer Frederick F. Cripe Senior Vice President, Product Operations Leadership Team Learn more about Allstate's senior management team at...

  • Page 39
    ... net income. Revenues-customer premium and fee payments and total investment results. Shareholders'Equity-the difference between total assets and total liabilities, which indicates the book value of the ownership interest of Allstate's shareholders. TotalShareholderReturn- the change in market...

  • Page 40
    ...it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per share, excluding unrealized net capital gains on fixed income securities, is a measure commonly used by insurance investors Cert no. CSC-COC...