Allstate Corporation turns its back on banking

In a move effectively marking
its exit from banking, US composite insurer Allstate Corporation’s
unit Allstate Financial is to sell the $1.1bn deposit book of its
Allstate Bank to Discover Bank, a unit of US banking and payment
services company Discover Financial Services.

As part of the agreement
Allstate and Discover Bank will enter into a multi-year
distribution and marketing agreement.

“Allstate Financial has
refocused on insurance, retirement and investment products,” said
Allstate Financial president and CEO Matthew Winter.

“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.”

In 2010, Allstate Corporation
reported total general insurance premium income of $6.44bn, a
decline of 1.2% compared with 2009, and life and annuity premium
income of $531m, an increase of 6.6% compared with 2009.

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