NORTHBROOK, Ill. (AP) — The Allstate Corp. said Monday that its board of directors approved a plan to buy back up to $1 billion of the insurer's shares by the end of next year.

The company will fund the share buyback plan by issuing a like amount of subordinated debentures to be issued over the next year.

"Repurchasing stock at today's low multiples by issuing securities with equity-like terms takes advantage of historically low yields in the market and reduces our cost of capital," said Thomas J. Wilson, Allstate's chairman, president and CEO.

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