Declarations

February 21, 2011

Allstate Exits Banking

“Allstate Financial has refocused on insurance, retirement and investment products. That, combined with the changing regulatory environment, led us to the determination that operating Allstate Bank is no longer core to our long-term strategy.”

—Matthew Winter, president and CEO of Allstate Financial, noting that the company is exiting the banking business. Discover Bank, a division of Discover Financial Services, is purchasing the $1.1 billion deposits of Allstate Bank, and the two have entered into to a multi-year distribution and marketing agreement. Discover Bank will assume the Allstate Bank deposit accounts and provide banking products and services to Allstate customers, including loans to Allstate’s agents.

Predictive Models & Price

“Effective implementation of predictive modeling enhances risk selection and pricing Ñ leading to greater insurer profitability and the potential for growth in market share,”

—Brian Stoll, Towers Watson senior consultant and co-author of a survey on predictive modeling. The study indicates the current use of predictive modeling in the United States is up by roughly 10 percent across all lines of business except commercial property/BOP, which remained relatively flat. Among personal lines, 83 percent of auto carriers said they use predictive modeling; 61 percent of homeowners carriers have implemented predictive modeling (versus 2009 figures of 76 percent and 44 percent, respectively).

Fatalities Falling

“It appears that education and enforcement are helping Oregonians realize they can make a difference in safety. Still, there were too many individuals who paid the price of their lives, and we all must continue to be diligent.”

—Troy E. Costales, Oregon Department of Transportation Safety Division administrator, commenting that Oregonians are responding to transportation safety messages. A recent ODOT report tallied the state’s motor vehicle fatality toll for 2010 preliminarily at 325. The number is 13 percent lower than 2009, in which 377 fatalities occurred, and the lowest since 1944, when the number was 245, the state Department of Transportation reported.