Allstate CFO sells over $1 million in stock
Jess Merten, the relatively new chief financial officer of Allstate, managed to collect $1.2 million last month through a sale of company stock by exercising options which were not set to expire until 2029.
Merten, who was named CFO on September 1, 2022, sold 29,451 shares on February 22, 2023 at an average price of $134.18. Following closure of the sale, the CFO now owns 16,668 shares in the company. Information on the sale was disclosed through an SEC filing.
Crain’s Chicago Business reached out to an Allstate representative, but the spokesperson would not comment on why Merten opted to sell now.
Since the sale, Allstate’s stock dropped more than 5% and is trading just over $127.
Merten was previously the president of Allstate’s financial products unit.
News of the stock sale comes after reports that Allstate is facing a potential crisis involving its aggressive stock buybacks. The insurer spent a whopping $2.5 billion on share repurchases in 2022, despite posting a $1.4 billion net loss on the same year. Crain’s Chicago Business additionally reported that Allstate’s current capital position is its “weakest” in years.
Allstate CEO Tom Wilson gave assurances to investors that he had no concerns about the company’s capital. The company raised its shareholder dividend by 5% last month, and Wilson said that it would spend a remaining $802 million on its existing stock buyback authorization by the end of the third quarter this year.
