Allstate 2006 Annual Report Download - page 10

Letter to Shareholders
Our Success
Our year of record prots in 2006 continues our tradition of protecting share-
holder capital while earning superior returns. Allstate’s market capitalization
has tripled from $11 billion in 1994 to more than $40 billion at the end of 2006.
In the same period, we have returned more than $19 billion to shareholders
through dividends and share repurchases. That means that we have returned
nearly two-thirds of our earnings directly to those who chose to invest in us.
Last year we built on that tradition of success. Our strong operational
results generated an unprecedented $4.9 billion in operating income* for the
corporation as well as record operating income from Allstate Financial. We
delivered a 23.8 percent return on equity for shareholders while rewarding our
employees with the maximum contribution possible—$1.50 for every $1.00
(up to 5 percent of eligible pay) that eligible employees contributed to their
prot-sharing plan.
What lies behind these statistics? We were, of course, aided by lower catas-
trophe losses. But even aside from this welcome relief, our dedicated team of
associates performed extremely well by:
• Growing and strengthening the Allstate brand
• Offering innovative products in property-casualty and nancial services
• Unveiling the next generation of claim processes and
• Raising customer satisfaction
Upon that foundation, we will build Allstate’s future, better serve our
customers and provide our people the opportunity to grow and prosper.
Read more online at www.allstate.com/annualreport.
January 2007
Tom Wilson
becomes
CEO of
The Allstate
Corporation
January 1995
Tom Wilson
joins Allstate as
VP of Finance;
elected CFO
later that year
January 1999
Tom Wilson
appointed
president of
Allstate
Financial
Ed Liddy to re-
main chairman
of Allstate
until spring
of 2008
January 1999
Ed Liddy becomes
chairman and CEO
of the Allstate
Corporation
August 1994
Ed Liddy named
COO; became
president and
COO in January
1995
1995 1997 1999 2001 2003 2005
$14.75*
$65.11
June 2005
Tom Wilson
named
president
and COO of
The Allstate
Corporation
October
2002
Tom Wilson
named
president of
Allstate
Protection
1993
Leading the Way to
Shareholder Value
Stock Price Appreciation (prices at year-end)
Ed Liddy Tenure
Tom Wilson Tenure
*Adjusted for stock split in 1998.
2007
*For a denition of this term, please see the Non-GAAP and Operating Measures card;
also available online at www.allstate.com/annualreport/denitions.