I don't think so, and it's better that the purchase didn't happen. I have a bad feeling that the end of that story will be very sad, with a lot of losses and a lot of layoffs.
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NatGen’s non standard side has nothing to do with the new organization.
For those on the call at noon there is no doubt they haven’t spoken to enough agents outside of the echo chamber
In theory Nat Gen was a great purchase. Broader distribution and a chance to go after nonstandard auto insurance. However, Allstate’s track record in purchasing competitor insurance companies is a disaster. This statement of rebuke arises from the the E-Surance purchase and Encompass debacle. It will be interesting to see how Allstate handles when (not if) the frequency and severity rise at Nat Gen. In the past Allstate generally panicked when their own non-standard business needed margin’s adjusted. Allstate’s knee jerk reaction was to raise its non-standard pricing to the point where very little to no business was being written.
Cool story Bruh
@2zmr I am sorry that you and your peers have been force dragged into the professional and moral sewer that is Allstate. Sadly you are all about to experience a sad horrible world of professional pain that I wouldn't wish on anyone. A culture of lies, deceit, and misleading is what you are now a part of. The Esurance folks experienced it and sadly most are no longer with us in all fronts and departments. Allstate acquired NatGen simply to buy market share lazily instead of trying to better their product and processes. They have no interest in anything else associated with NatGen including the people there. I can only hope and wish you are treated better, more fairly, and more humane than Esurance and Allstate employees in general. Best to you all!
Nat gen employee here. Resent being told we handle claims sub par. All I have read for months is your whining. We are fine and no I am not thrilled that we are apart of Allstate. I handled claims with Allstate as adverse carrier.....nothing allstate adjusters did that I would not do
They needed them to buy market share. Allstate brand auto retention is declining and they only way they can "grow" is through acquisitions. The initial Nat Gen policy in force bump will fade quickly. If organic growth doesn't occur by next year at this time then there will be problems. Another acquisition would be needed to pad PIF counts or people will start really realizing transformative growth was a failure. The stock price will fall due lack of growth at that time. The company is taking too long to let customers buy all lines online. People want cheap easy to buy policies. Allstate is 25 years late to that party. Fortunately they have tons of cash so those that are left can ride out the slow demise for years to come. In spite of the lost market share they still make a ton of money for now. Wall Street appreciates that. It is when no more blood can be squeezed from the shrinking stone that the decline will accelerate.
$5 billion cash purchase . Not sure they can make NatGen perform the Allstate way and transform NatGen into what they want Allstate to become . Tom has his hands full tight now trying to “fix” the mess he created with the claims department by trying to rehire and hire adjusters due to laying off too many last November .
They way NatGen works claims is horrible. They don’t review estimates, their standards are so “ subpar” that it is ridiculous. This is a project that is doomed for failure.
Slow death on this purchase.
Allstate is no where near competent enough to handle and run the big steaming stinky ball of sh-t that they call a company. No way they properly handle some poor company whose fate was sealed by being taken taken over by Allstate.