Allstate 2011 Annual Report Download - page 182

Liquidity sources and uses Our potential sources of funds principally include activities shown in the following
table.
Property- Allstate Corporate
Liability Financial and Other
Receipt of insurance premiums X X
Contractholder fund deposits X
Reinsurance recoveries X X
Receipts of principal, interest and dividends on investments X X X
Sales of investments X X X
Funds from securities lending, commercial paper and line of credit
agreements X X X
Intercompany loans X X X
Capital contributions from parent X X
Dividends from subsidiaries X X
Tax refunds/settlements X X X
Funds from periodic issuance of additional securities X
Funds from the settlement of our benefit plans X
Our potential uses of funds principally include activities shown in the following table.
Property- Allstate Corporate
Liability Financial and Other
Payment of claims and related expenses X
Payment of contract benefits, maturities, surrenders and withdrawals X
Reinsurance cessions and payments X X
Operating costs and expenses X X X
Purchase of investments X X X
Repayment of securities lending, commercial paper and line of credit
agreements X X X
Payment or repayment of intercompany loans X X X
Capital contributions to subsidiaries X X
Dividends to shareholders/parent company X X X
Tax payments/settlements X X
Share repurchases X
Debt service expenses and repayment X X X
Settlement payments of employee and agent benefit plans X X X
We actively manage our financial position and liquidity levels in light of changing market, economic, and business
conditions. Liquidity is managed at both the entity and enterprise level across the Company, and is assessed on both
base and stressed level liquidity needs. We believe we have sufficient liquidity to meet these needs. Additionally, we
have existing intercompany agreements in place that facilitate liquidity management across the Company to enhance
flexibility.
Parent company capital capacity At the parent holding company level, we have deployable invested assets totaling
$3.84 billion as of December 31, 2010. These assets include investments that are generally saleable within one quarter
totaling $3.43 billion. The substantial earnings capacity of the operating subsidiaries is the primary source of capital
generation for the Corporation. In 2011, AIC will have the capacity to pay dividends currently estimated at $1.54 billion
without prior regulatory approval. We do not anticipate that ALIC will pay dividends to AIC in 2011. In addition, we have
access to $1.00 billion of funds from either commercial paper issuance or an unsecured revolving credit facility. This
provides funds for the parent company’s relatively low fixed charges.
In 2010, dividends totaling $1.30 billion were paid by AIC to its parent, the Corporation. There were no dividends
paid by AIC to the Corporation in 2009. In 2008, dividends totaling $3.40 billion were paid by AIC to the Corporation.
There were no capital contributions paid by the Corporation to AIC in both 2010 and 2009. In 2008, capital contributions
paid by the Corporation to AIC totaled $1.00 billion.
In 2010 and 2009, a return of capital by American Heritage Life Investment Corporation to the Corporation totaled
$24 million and $13 million, respectively. There were no dividends paid by Allstate Financial in 2008.
102
MD&A