If I had to list things that are of real value in this company, I would have to agree with another poster and say that it was just a home product. Unfortunately.
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It's very difficult to grow Home Owners insurance organically. Casualty insurance is a different animal and can be grown organically (please refer to Geico and Progressive for evidence of organic auto growth.) When Progressive buys Allstate they will be a force to be reckoned with in the insurance industry. It will be painful on the Auto side to fix the damage Wilson has done with the product. However, Mrs. Griffin is an innovator in the insurance industry and can repair the wreckage that Wilson and Shapiro have created (please review how liberty mutual rebounded after Shapiro left.) Patty knows how to play nice with agents and is a MONSTER in the direct business. Everyone wins in a merger except the redundacies of employees at Allstate Insurance
Rank Compay Premiums Market Share
1 STATE FARM GRP 19,717,031,703 17.87
2 ALLSTATE INS GRP 9,005,250,696 8.16
3 USAA 7,362,746,787 6.67
4 LIBERTY MUT GRP 6,991,282,920 6.34
5 FARMERS INS GRP 6,043,864,526 5.48
Private Passenger Auto
1 STATE FARM GRP 40,397,655,895 16.90
2 BERKSHIRE HATHAWAY GRP 33,785,461,624 13.54
3 PROGRESSIVE GRP 33,171,940,695 13.30
4 ALLSTATE INS GRP 22,726,698,535 9.11
5 USAA 15,772,993,227 6.32
In 2019 or 2020 I remember a comment on an earnings call that was something to the effect of Allstate has only 8% market share for homeowners insurance and accounted for 50% of the underwriting profit in the industry. I personally think our homeowners premiums are getting too high as they try to chase the above stat. Fix the auto and get more aggressive on the home and Allstate would grow leaps and bounds while remaining profitable. Allstate doesn’t want to grow/profit….they want to grow/maintain to get bigger margins.
Allstate’s HO product could not pay for 20% of the company’s obligations.
In reality the Auto product is good under normal situations. Some of things that are holding up the auto product is new business pricing. Allstate needs to be more aggressive in its pricing. Milewise is a great product. However, going after older folks that drive very little will not carry the product. Older americans tend to get into more accidents than youger people. Allstate needs to price this prduct for younger people that drive their cars up to 12k a year. Morover, when Allstate goes to sell the youger people's driving data they will get top dollar for that information. Floyd Yager's work on pricing renewals is miserable. His data is causing more people to leave Allstate with their auto insurance. Pretty Boy Floyd needs to smell the coffee and quit ja--ing auto renewals on customers to the point of no return. A sub 87% retention is not acceptable in the market place. His renewals are prompting Allstate customers to leave in droves.
Talent aquistion in this company is abysmal. Obtaining talent from Farmers Insurance with the likes of people such as Troy Hawkes is a head scratcher. Go buy some talent from State Farm to lead the agency force. What the heck is the the Clearance Williams hire from Nationwide? Last time I checked Nationwide got rid of all their agents. Not the best hire in my opinion. You want to play in the direct arena? Go get someone from Geico or Progressive that knows their a&& from a ho-e in the ground. For God's sake Transformative Growth is about fixing the Auto Product. Pull the trigger and do something about it.
Waiting 30 Min for claims help is not acceptable. Claims use to be great at Allstate. Make claims great again! Enough with the layoffs already and get back to business. Total loss in India? Really! Grow up the American consumer will not tolerate it!
Why is Allstate buying so many shares of stock back when its priced in the $130's Give it a few months and they will be able to buy it back in the $80's.