kiss the life company goodbye. Underwriters will be gone soon as the fold that sinking ship. 4 billion dollars lost
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Property and casualty underwriter here. We are still here... at least for now...
Unfortunately TW and GS are not interested in growing. They want consistent profit with the existing business. There has been no organic policy or premium growth with the Allstate brand. Profits are being spent on dividend hikes and share buybacks. The only growth this year will be from the Nat Gen purchase. However, Nat Gen will need to be fixed because it has been buying market share the past 3 years and their products are not priced correctly. As you know, TW prides himself on being the first company to take rates when they are needed. You will see the Nat Gen business start to erode in Q3 this year. TW and GS have taken full advantage of the Covid profits and have done little to fix the Allstate Brand auto.
Allstate loves to cook the books and move numbers and funds around to paint a rosier picture. They outright lie and illegally report falsehoods to the employees and shareholders while and by doing this. The company is in far worse shape retention and market share wise than they report. Now that the reserves are gradually being used up the plan of "Transformative Growth" ie layoffs and cost slashing is taking full effect. So much so that they had to start it during a pandemic. Down the ship slowly goes.....
Yes, this is old news.
Allstate will still sell life insurance. They won't be selling their own over priced policies that are out of date. Allstate never seemed to want to compete on price in life insurance and its become a commodity like auto insurance. You can't compete when you are way more expensive than the competition. Hmm, seems like something Allstate is trying to change in selling more cost competitive auto insurance.
While Allstate can record a loss on paper, it unlocked loads of capital from reserves which can be spent on growing other business.