During 2007, Allstate’s long record of sound management of shareholder capital was reflected in dividends per share of $1.52, an increase of 8.6 percent from 2006. Consistent dividend policy has led to an annual average increase of 10.8 percent since our initial public offering in 1993, and we increased dividends every year since 1994. In 2007, Allstate repurchased 61 million common shares for $3.55 billion, representing nearly 10 percent of shares outstanding at the beginning of the year. Upon the completion of the current $4 billion program in 2008, Allstate's board authorized us to begin a new program for $2 billion of shares, to be completed by March 31, 2009.

Allstate’s strategy and operating performance in 2007 delivered on our commitments, generated excellent results and enabled us to strengthen our competitive position. Revenues reached $36.8 billion—the highest in our history—and net income of $4.6 billion ($7.77 per diluted share) was the second highest in our history. Return on equity was 21.2 percent, reflecting both the strong operating results and aggressive capital management. Our Property-Liability combined ratio of 89.8 is an indication of our ability and commitment to deliver shareholder value. We believe this performance should ultimately translate into a stock price more in line with our historic range.