Almost 4 years into his tenure as PPL President, growth has yet to materialize. Agent, employee, and customer satisfaction at all-time lows. Margins under pressure as driving returns to pre-pandemic levels and inflation drives claim costs higher. Little hope of improved value in the short-term. Thoughts and observations?
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Further market share declines will take down fourth quarter results to its lowest levels under current leadership. But they will find a way to blame agents and daily broken computer systems.
There is one constant “the street loves what we are going”. They manage to their shareholders and nothing else.
Why won’t Allstate ever catch a Liberty? Liberty was smart enough to get rid of Glenn.
The current TG strategy, if begun 10-15 years ago, would've put the company in a different and better position. The Direct market was emerging, and the IA market still represented 35% of the P&C premium base. However, Wilson and the Board failed to aggressively pursue the opportunity. They pretended to play direct with Esurance and Encompass IA was a failed endeavor forever. They played it safe harvesting profits for share repurchases/dividends to prop up the stock. Now we are so far behind major competitors that continue to innovate better than Allstate. Glenn and a better BOD that includes players from Fidelity and Wellington Investments get it, but too late?
Over the last 5 years Allstate Stock has underperformed the Dow and the S&P, so the millions that Tom and Glenn have made has been one he-l of a participation trophy.
The thing is, Glenn has one idea that he knows how to execute on: cut costs. He and Tom also benefited from an enormous tax cut during their tenure, which was used almost entirely to (multiple choice):
- Reward and fairly compensate their hard working employees
- Buy back stock and support dividends in order to enrich their major stockholders and, primarily, themselves.
I've actually heard Glenn say some correct and insightful things about changing the stagnant culture at Allstate, but he seems to have no idea how to execute on that.
It’s easy to drive profits during a pandemic when no one is driving. The move from $93 to $130 happened during the misery of the Covid 19. Meet the new boss same as the old boss. Allstate has done a good job at forcing the consumer to the direct channel. Will this direct business be profitable? Or will the business mirror the results of Esurance? Will retention recover to the pre-pandemic level of 88%. Say what you want about the agents. For the most part they drove profitable business into Allstate’s lap. The agents have been forced to go on the Battaan death March with the decreased revenue. Wilson promised to fix the Auto product. It is still broken and the repairs are nowhere in sight. You will see some painful quarters fast approaching.
Four years ago Allstate stock closed at $93 while today floating around $130. Glenn’s done well in driving that stock price. If the company is thriving, it’s on the back’s of frontline workers and leaders. If things aren’t perfect it’s because of Glenn and the horrible people in home office. The rhetoric on here is out of control and oozing with ignorance. Most posts seem to justify the actions to remove small thinking workers dreaming of the good ol’ days of 1997.