Allstate announced 3rd results and they were horrible. They blame it on rising severity.
If they hadn’t fired most of claims staff and the legal teams instead of outsourcing to India.
Exactly what they expected when they penny-pinch and bit them hard.
Interesting that TW's explanation of poor 3Q results and unfavorable loss ratios to analysts included higher medical costs for employees over last year when ALL has one of the worse medical benefit programs I've ever seen (and about 5,000 less employees compared to a year ago). He also blames the higher cost of car parts and increase in total loss values on severity. Maybe if they had experienced and properly trained employees who knew what they were doing the severities wouldn't be so bad! Share price is currently down about $24/share since its high of about $140/share in May 2021. Something ain't workin'!
PS Travelers and Progressive's share prices have overall increased YTD.
Karma has come to collect Allstate 😃
How sh---y employees, get sh---y results...
This company has been sucking dry every nickel from long term customers. Every penny to lower expenses has been a disaster. Customers are leaving faster and what agents have told me retention is not a priority. They will be paid more up front and less on back.
Goes to show you how d-mb these leaders are.
EXACTLY !!!
For those of us on the front line this has been coming for awhile. We are hiring people with no qualifications or customer service skills, providing a fraction of the training we used to, and using a virtual platform that gives us less ability than ever to oversee vendors. There are more body shops than ever who are simply not willing to work with Alllstate. Property is a complete and total disaster. Lower morale than ever across the board. Garbage equipment, platforms, and more redundant processes than ever! It’s as if leadership is intentionally setting the company up for failure. Stay tuned! This is just the beginning.