Just got an email that Allstate is purchasing SafeAuto and they will become apart of National General. This will be interesting to say the least.
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Name one acquisition TW hasn't f33ck4d up?
I posted this 13 days ago on a post asking if Allstate needed Nat Gen. I guess my speculation indicating they would need an acquisition to continue to grow came true sooner rather than later.
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.
Great, I can’t wait to speak to even more upset and angry customers because their total loss claim takes 30 days to settle and get paid.
I wonder how many get laid off this year to help pay for this little nugget. Welcome to purgatory SafeAuto folks!
Here we go again...buy market share that puts the facade that all is fine and dandy while 80% of the rest of Allstate's product continues to be a blazing dumpster fire or ineptness and incompetence. How about they fix what is broken and keep jobs in this country instead of doing the old slight of hand to make it look like the business is growing. Looks like the brainiacs in Chicago haven't learned a thing over the last 2 years of disaster.
Wilson’s next disaster
The general is owned by American family so not likely.
Not sure why they are buying these small companies. 300 million really has no value to allstate especially since they dont like risk and that is all state auto is
Degrading the value of the good hands...
I hope they by the general next, Shaq is a friend of my family
Exciting times lol