NORTHBROOK, Ill. and
RIVERWOODS, Ill., Feb. 8, 2011 /PRNewswire/ -- The Allstate
Corporation (NYSE: ALL) and Discover Financial Services (NYSE: DFS)
today announced their plans to enter into a multi-year distribution
and marketing agreement. As part of the transaction, Discover Bank
will purchase substantially all of the deposits of Allstate Bank.
The parties expect the transaction to close by mid-year, subject to
regulatory approval. Under the terms of the agreement, Discover
Bank will assume the Allstate Bank deposit accounts and provide
banking products and services to Allstate customers. Allstate
Financial does not intend to originate banking products or services
after the transaction closes. Financial terms of the transaction
are not considered material.
"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," said
Matthew Winter, president and chief
executive officer, Allstate Financial. "This agreement will enable
Allstate Financial to deepen its focus on producing differentiated
products for our key markets, strengthening relationships with
existing customers, and creating profitable growth for Allstate.
Our customers will have uninterrupted access to their FDIC-insured
deposits and services through Discover, a leading direct bank with
a nationally respected brand."
As part of the distribution and marketing agreement, Allstate
affiliates and agents will offer personal savings and money market
accounts, CDs and individual retirement account CDs to their
customers through Discover. Discover Bank offers a differentiated
set of products with competitive rates, financial management tools,
24/7 customer service, and broad online functionality with mobile
access. Discover Bank accounts are insured by the FDIC for up to
$250,000 per depositor.
"By joining forces with Allstate, an industry leader with a
well-known brand, Discover will continue to offer the safe and
secure products Allstate customers have come to trust," said
Carlos Minetti, president of
consumer banking and operations for Discover. "Affinity
relationships with leading organizations have provided us with an
effective platform for offering Discover Bank's products to an
expanded customer base."
The transfer of deposits will not affect insurance policies and
other non-banking products that customers have with Allstate.
Discover will continue to offer Allstate customers many of the same
banking services that are available through Allstate Bank today.
Bank customers can expect to receive further notification about
timing and the transition of their accounts in the next few months.
Allstate Financial will continue to offer and administer business
loans to Allstate agencies through Allstate Finance Company,
LLC.
About Allstate
The Allstate Corporation (NYSE: ALL) is the nation's largest
publicly held personal lines insurer. Widely known through the
"You're In Good Hands With Allstate®" slogan, Allstate is
reinventing protection and retirement to help nearly 16 million
households insure what they have today and better prepare for
tomorrow. Consumers access Allstate insurance products (auto, home,
life and retirement) and services through Allstate agencies,
independent agencies, and Allstate exclusive financial
representatives in the U.S. and Canada, as well as via www.allstate.com and
1-800 Allstate®.
Allstate Bank received its thrift charter in 1998 and began
offering retail banking products in 2001 as part of Allstate's
strategy to help Americans save for their financial futures. The
bank currently offers FDIC-insured certificates of deposit, money
market accounts, savings accounts, checking accounts, ATM/debit
cards and home mortgages. Allstate Bank had $1.1 billion in deposits at Sept. 30, 2010.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States. The company operates the
Discover card, America's cash rewards pioneer, and offers personal
and student loans, online savings accounts, certificates of deposit
and money market accounts through its Discover Bank subsidiary. Its
payment businesses consist of Discover Network, with millions of
merchant and cash access locations; PULSE, one of the nation's
leading ATM/debit networks; and Diners Club International, a global
payments network with acceptance in more than 185 countries and
territories. For more information, visit
www.discoverfinancial.com.
SOURCE The Allstate Corporation; Discover Financial Services