Wilson and Shapiro has one thing in mind and that is a takeover of the company that will provide them with even more riches.
Selling the real estate, dropping business that is less appealing to suitors like the life business and trimming employees to less than bare minimum all points to the end game.
This smaller “Allstate” is being positioned to be merged with another insurance company or possibly an automaker like Ford to be merged with Ford motor credit as a one stop shop for car, financing and insurance.
Little Tommy and his grim reaper Glen will see that stock spike as usually happens when a publicly held company is bought and for them…that is what it is all about….their own financial success….F the customer..F the Allstate employee..
I don’t know what it will mean for customers in the end but for most current employees, it likely means the loss of their livelihoods and that is sad particularly for those who have many years of their lives to this company..
Mark my words, within 2-3 years you will see a merger or buy out of this company…There is no other reason for the decisions that have been made since 2016..
11 replies (most recent on top)
Transactional growth is the death of Allstate. The marketeers on enhanced scale to the rescue for policy #s and retention in the toilet
If you put on your critical thinking hat, you would reason out that a 35 year employee, or 25 year, or 10 year, or 2 year, or anything in betwixt, are all using the tech/processes put into place by upper level management. You know, the tech that breaks or crashes on the daily, requiring a daily reboot. The tech that is so slow, it is on the lowest end of the performance spectrum. The processes that were created by someone who does none of the jobs they were designed for, making them completely disconnected from what the job entails. Processes, which after being implemented, are given a short period of time before they are changed again. Because as soon as we acclimate ourselves to the new process, our leaders decide we have become too efficient so we need to change them again. Processes, by the way, that are never more efficient that than the prior iteration, they are always more time consuming and less user friendly.
So you believe that people like you made it a great company, but now that you think it's not a great company, it's the people at the top?
I think you're delusional about your own value
The cause of the problem is the rat finks at the top. The hard working dedicated everyday workers are the ones holding this cracked orb together. Grow to learn… watch what the past has shown. And yes, some of them have been here 35 years. Why beef with them? The millionaires at the top have ruined a once great company. Money has corrupted their minds. Soon, the machines will be running Allstate and for what ? We all know there answer.
At the steward you have been for 35 years, don't you ever think you and the other people here for 35 years were the cause?
Well...the way Allstate is trending - we'll be a "smaller company" before you know it. Never dreamed in my 35 years with this company what a s##t show it has become.
It won't be a merger with another insurance company that would not pass the government regulators, that is why only smaller ones are being bought by Allstate, State Farm, and so on.
I agree with the OP. Tommy is slimming down the company for a fire sale. There are only about 7,500 agencies left across the country to go along with another 1,500 who are dying to get out. I believe that number will be slimmed down to about 5,000 agencies for the customers that still want an agent. Where Allstate can get away with it, they are raising auto rates 12% and then you have to factor in the inflation formula that is baked into the policy. Customers are seeing 15%-21% rate increases. Consumers will not stand for it. The direct customers will be shopping the most! Nat Gen is a pig sty. The loss ratio is out of control and they have to pay 15% commissions on their policies to independent agents.
Progressive needs Allstate's expertise and scale on homeowners insurance. They can fix the broken direct channel. Moreover, a 5K agent force is very appealing to Progressive. Can you say "Progress-All."
Nope! You are leaving out a very important point; ego. Tom Wilson is an arrogant POS and although he may enrich himself with a company sale, it would also mean admitting defeat and becoming a bit player. This guy's ego is bigger than his wallet and he is in the driver's seat right now. They are going leaner and meaner to compete, without any change in Senior leadership. As usual, Wilson is late to the game, playing catch-up and making acquisitions that Allstate will run into the ground in record time. Has he ever made a successful acquisition?
Very real possibility. The recent changes that have been made (2016-current) certainly do not provide an advantage over our competitors. We have run off our talent, have the worst equipment and tech amongst the top 10 carriers and are bleeding customers. That said, they better hurry up! This place is only going to start looking worse and worse financially!
Whole heartedly concur...it's Corporate Business 101. Allstate staff being trimmed and getting lean to temporarily blend with the takeover company. How can this not be ignored by Wall Street?