Allstate Corp’s board of directors has approved a new $1 billion share repurchase program.
The Northbrook, Illinois-based company will issue a combination of preferred stock and senior unsecured notes totaling $1.25 billion to fund the buyback, which is expected to be completed by March 31, 2013.
Last week, Allstate — the largest publicly traded home and auto insurer in the United States — posted a smaller third quarter profit, as it lost more than $1 billion from natural disasters. It completed a $1 billion share buyback during the quarter.
The company’s board also approved a quarterly dividend of 21 cents.
Allstate’s shares closed at $26.49 Tuesday on the New York Stock Exchange.
(Reporting by Sharanya Hrishikesh in Bangalore; editing by Andre Grenon)
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