I wonder how much of a good move is the acquisition of the Allstate's New York unit by Wilton Re?
This transaction has minimal impact on our strategy of increasing market share in personal property-liability and expanding protection solutions for customers. Wilton Re is a trusted name with a history of excellent customer service and expert management of life insurance and annuity portfolios, so ALNY customers will be well protected.
Press release is tragicomic, isn’t it?
Most if not all strategic moves by CEO over past 15 years have proven to be poorly developed and executed. Beyond failing to compete effectively in the direct space allowing Geico and Progressive to expand to our detriment, they wrote down over $1 billion when the Esurance brand was recently retired and growth has yet to materialize. Let's add another $4 billion write down to exit the life and annuity businesses per Bloomberg note below that was public yesterday. Any odds that Transformative Growth gets it done? Still a money-making machine with non-competitive pricing that buys back shares and pays a dividend, so the stock will be supported. Pressure in claim department may derail the TG ambitions.
Allstate Corp. struck another deal to sell part of a life-insurance business and warned investors that the divestitures will result in a roughly $4 billion net loss in the first quarter.