Most of Encompass field sales will be notified by 12/16 that they will be RIF’d with the National General acquisition closing in January. Likely those east coasters be ok but staff reduced. Encompass only has another 12 months of life in it then will be closed up and absorbed.
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Any updates on the fate of Encompass? Rumor has it that the sale will be final first week in January.
I would be dismissive of this without Pat being safely returned to Allstate and Ken’s “resignation” last week.
It would be shocking if Allstate was piece mealed and sold off to highest bidders. Tom Wilson is president and ceo not the owner of the company. Firstly it’s not within Tom Wilson’s authority to make a decision and a move like that.Secondly Allstate is one of the biggest corporations in the industry and not some small player like national general. So yea.. not gonna happen. With all that said... it would make sense that the reason they are destroying morale and process is because they don’t really care about keeping long term growth and only looking to make the company look stronger on paper to sell. Either way I would have to laugh if Allstate was broken up and sold off.. poetic justice in many ways.
Actually 2024 is the target time for Allstate to be sold off and to be completed by end of 2025. The elimination of the exclusive agency channel is targeted for 2022. Word will start trickling down through the enterprise in the next 12 months or so.
Encompass was doomed from the beginning. Encompass leadership was comprised from the Allstate sc-ap heap. Management figures that did not make it in the Allstate channel were sent to Encompass to die. This included the Encompass Presidents.
Allstate does not have a good track record with businesses that they purchase. Look how well the Esurance purchase went.
Really interesting TW is beginning to dismantle the Allstate Agent channel. The Agent Channel is responsible for 80% of Allstate branded product sales. The destruction of the agent channel without having a solid direct channel seems to be a rudderless action by TW.
The Nat Gen purchase will fail also. The book is flawed and will need to take rates fairly soon. Moreover, IA’s will not tolerate being treated ignorantly by Allstate management.
I predict Allstate will be dismantled and sold in 2022. Allstate’s biggest asset is its Homeowners product. It would be a way for Progressive to get a bigger footprint in the property insurance arena. Progressive would rival Geico and State Farm with the purchase of Allstate.
I believe Wilson will piece meal the rest of the company off to the highest bidder. At which point, TW will sail off into the sunset.
They are already in a RIF.