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A Leader in Value
Allstate is a company that does much more than collect money,
settle claims and return a profit. Each year, we find new
ways to create lasting value for the shareholders, customers
and communities we serve. The inherent customer value that
our business delivers and the caring culture that our work
has created make us better corporate citizens – and
a better and more valuable company.
When thinking about lasting value, investors should focus
on our proven record of capital management, where we have
demonstrated the ability to invest in areas that will drive
growth and generate solid returns. Here, Allstate has an exceptional
track record. Since our initial public offering in 1993 through
the end of 2004, the total shareholder
return on our stock has averaged 13.7 percent on a compound
annual basis. Equally impressive, over the same period the
total value of Allstate’s return to shareholders exceeded
both the Standard & Poor’s Property & Casualty
and Standard & Poor’s 500 indices. That’s
solid evidence that we are using shareholders’ equity
effectively to deliver profitable returns and strong earnings,
and that we are managing a company built for long-term value.
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In Florida, we put our caring culture
on display in many ways. We logged 75,000 overtime hours
in call centers, created 25,000 claim reports and cut
42,000 checks.
We also gave teddy bears to hundreds of kids to start
the healing. |
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| Allstate measures value in many ways.
We have generated long-term financial value for shareholders by managing
and investing our capital responsibly. We create value for communities
by understanding what matters and by showing we care. In the process,
we forge long-term relationships with customers.
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Investors and regulators also
value Allstate’s commitment to sound governance and financial
transparency. The exemplary governance practices adopted by our
board of directors are reflected in the very solid rankings and
reports we receive from third-party governance rating services.
We also benefit from a senior management team whose actions set
a tone of integrity, accountability and discipline that runs throughout
our company. Our strong corporate reputation has served the company
well in the face of fast-changing business, legislative and regulatory
environments.
We are equally proud of the value we create by giving back to the
people and communities we serve. For example, the company matched
contributions by its employees, agents and agency staff of some
$760,000, to bring the total Allstate donations to more than $1.5
million for the tsunami disaster recovery efforts in Southeast Asia.
The future of our society – and of our company – depends
on stable communities that nurture individual achievement. Allstate
makes a difference by helping build safe and vital communities;
by paving the way for economic empowerment; and by encouraging greater
tolerance, inclusion and diversity.
At December 31, 2004, we had more than $30.5 billion invested in
municipal bonds and low-interest loans to strengthen urban communities.
Through The Allstate Foundation, we provided some $14 million in
grants to 700 not-for-profit organizations across the country. In
addition, Allstate agencies awarded Foundation grants to more than
1,800 local community organizations. And our employees and agents
volunteered their time and talents to thousands of national and
local causes. |
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| Total
Shareholder Returns |
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Total
Shareholder Returns Since IPO on 6/3/1993
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| Total shareholder returns as of December
31, 2004, for Allstate investors since the company’s
initial public offering on June 3, 1993, exceeded many
of its corporate peers and industry benchmarks. The return
assumes quarterly reinvestment of all dividends. |
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| Dividends per Share (in
dollars) |
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| Dividends per share for Allstate investors
increased 11 percent on a compound annual basis since
the company’s IPO. |
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At Allstate,
when we take a stand, we take action. And in 2004 our decisive
actions drove powerful results. As we look to 2005, I expect
further success as our extraordinary leadership team and the
entire Allstate family pursue new market opportunities, continue
to execute our strategy and manage our capital wisely to create
the long-term value that you, our shareholders, deserve. We
are grateful for your ongoing support.
Respectfully,
Edward M. Liddy
Chairman, President and CEO
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