New York Insurance

The wealth managers and analysts spoke enthusiastically upwards yesterday on the upcoming IPO of the company Allstate. The sale, expected to increase by more than 2 billion dollars, would be the largest IPO ever in the USA.

The company, the nation is the second largest insurer of homes and cars, spin-off of public opinion Sears, Roebuck & Company, dismantled the financial services, property, to concentrate on its retail business.

People familiar with the offer, said storage, it is estimated that the price tonight, after the market closed. It expects the offering price of $ 27 near a share, above Sears, which in its prospectus.

Yesterday, in a unit of presentation for investors in the New York Palace Hotel, the ballroom was so filled, a participant said that representatives of large houses in the underwriting Deal had.

The insurer to a stock offering, of course, strives to generate reports of the overwhelming demand. The fact that the application may not materialize or if the action is Allstate the New York Stock Exchange. But people familiar with the cases said the great interest among fund managers.

Some buyers at the presentation yesterday expressed reservations about Allstate’s exposure in Florida and in other countries on losses on hurricanes and other natural disasters. Moreover, concerned by roadblocks Allstate faces, how it tries to reduce their risks in these areas deposit policy. But overall, buyers are generally impressed by Allstate said plans to reduce their exposure over time and the capital increase of their so-called surplus, partly with revenue from the IPO .

“This is a company that has a well-articulated strategy to increase profits,” said Diane L. Lockard, a vice-chairman with the company Asset Management in Cleveland, which manages over $ 16 billion. “I see for the comfort of their capital base and the fact that a good portion of the funds they collect are increasing the surplus.

In interviews yesterday, wealth managers and analysts Allstate described as a company with a budget of brand name and a simple declaration, why sees its future in pink. It is relatively low cost, a Top-flight distribution network by agents who are not duplicated, and a strong balance sheet, “she said. In addition, many analysts believe Allstate proposal for a sales price too modest in comparison with the comparable price of the company. Low Price Earnings Ratio

According to the offer price, Allstate action is expected to sell about 10 or 11 times the result, said Orin Kramer of Boston Provident Partners, an Englewood, NJ, Money Manager. Safeco and companies such as Ohio Casualty sell for more than 12 times the projected result in 1993. Some companies, like Geico for sale, 19 times more than the expected benefits.

With 12.5 per cent of owners of the nation and auto insurance, Allstate is second only in size of State Farm, which is a mutual, about one fourth of the market.

“It is one of the largest and best capitalized companies in ensuring the nation,” said Alan B. Snyder of Snyder Capital, a fund manager independent from San Francisco, referring to Allstate.

Sears Roebuck initially announced that they would be 20 per cent of Allstate at least 78.5 million shares between $ 24 and $ 27 for a share. At $ 26 a share, the company would be approximately $ 2.04 billion.

One reason may choose Sears, for the price of the offer at the bottom, analysts say, is that planning for Sears to maintain 80 per cent of shares, he hoped that the benefits of higher prices to the future. It is also of stock options for 2000, Allstate workers up, based on the first issue price. At a lower price to benefit employees.

But not everyone was enthusiastic Money Manager. Mr. Carl Lindberg, Director General of Brandywine Asset Management, said that it was the hat against the risk that the state authorities to block would be increased, and the prospect of greater automobile insurance losses if the economic upturn, which would mean an increase in automobile - driving and an increase in the number of accidents.