(Bloomberg) -- Allstate Corp., the largest publicly traded U.S. auto insurer, said pension obligations will reduce fourth-quarter earnings by $100 million to $125 million on costs tied to lump-sum payments for retiring staff.
“The value of lump sums paid to employees electing retirement in 2013 is elevated due to historically low interest rates,” the Northbrook, Illinois-based insurer said today in a statement distributed by PR Newswire. “Voluntary retirement activity during the fourth quarter was almost five times the typical level.”
All Financial Planning articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.