ALLSTATE CORP (ALL) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that ALLSTATE CORP surfaced in its latest filing.

• Reliance on the Michigan Catastrophic Claim Association (MCCA), a state-mandated indemnification mechanism, with risk that assessments may be insufficient to reimburse its ultimate obligation, impairing the company's ability to obtain 100% indemnification.
• The company sells and services National Flood Insurance Program (NFIP) flood policies as an agent of FEMA, with full indemnification for claims and claim expenses and no retained ultimate risk.
• Congressional authorization and funding for the NFIP is subject to freezes, including during a government shutdown.
• Outstanding subordinated debentures prohibit dividends or distributions on common or preferred stock if interest payments are deferred, subject to limited exceptions.
• Compliance with one regulator's interpretation may not result in compliance with another's interpretation of the same issue.
• Class action litigation challenging a range of company practices, including coverages provided by insurance products.
• Regulatory actions and inquiries, including market conduct exams by state insurance regulatory agencies.