I came here from Liberty Mutual and when Shapiro was booted ‘back to basics’ was the company branded term that walked back all of his garbage…. Is Allstate capable of making the turn around???
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The only company interested in Allstate's home and property is Dermody, and they already have it:
https://dermody.com/region/midwest-region/property/the-logistics-campus/
"Progressive has confirmed interest in Allstate's home and property."
When? Who? How? Where is there any evidence to back up your rumor-mongering?
This board is open for guessing. Here's guess #1 - there is no evidence to back up your rumor-mongering. You are just making it up.
Progressive has confirmed interest in Allstate's home and property. They have no interest in the fledging auto product and zero interest in taking on the agency sector. Before the sale to Progressive or anyone else the auto product will be sold for pennies on the dollar to entice the deal and the agency sector will already be eliminated as expected to be done in 2025. That said any sale of Allstate will not take place until at least 2026 or after.
I can only comment from a claims perspective and I left the company in 2022. The lack of leadership on that side was alarming. Whether from a knowledge, charisma, or claims technical standpoint, they are just terrible leaders all the way up the top. Being with a real organization it’s all the more apparent. What happened with the taken evaluation at that company? Blind leading the blind. Amazing a large organization let a major portion of their company get that bad.
Corrected entry - Very good observations by Twiithh until the last sentence. Don't understand the fascination on this board with the thought that Progressive will buy Allstate. The companies have such different business practices that would not make it worthwhile for PGR to try to incorporate ALL into into its business. PGR is not really a buyer. An interesting comparison of the companies is in this article: https://www.insidepandc.com/article/2au5bfg06eg1n2t1z49hc/personal-lines/allstate-vs-progressive-a-tale-of-two-cities
Very good observations by Twiithh until the last year. Don't understand the fascination on this board with the thought that Progressive will buy Allstate. The companies have such different business practices that would not make it worthwhile for PGR to try to incorporate ALL into into its business. PGR is not really a buyer. An interesting comparison of the companies is in this article: https://www.insidepandc.com/article/2au5bfg06eg1n2t1z49hc/personal-lines/allstate-vs-progressive-a-tale-of-two-cities
Too much damage done. This company is already dead as we know it. It's just the funeral and burial have not taken place yet. I agree totally that this company is being set up for sale and acquisition with the mass sudden (over the last three years) reduction of employee wage costs and the elimination of pretty much all the exclusive agencies by end of 2025. If a sale is not in the cards (which is highly doubtful) then the inept decisions and mismanagement shows the incapability of Wilson's leadership group to a T and almost to the point of being criminally negligent.
Twiithh - very astute and sad to say accurate...definitely feel like a corporate sale is approaching. Wilson and his cronies have been a disaster over the years. How the BOD can justify his leadership is mind boggling. As a 37 year agent - my primary reason for trying to hang on is to protect my customers from the company's cost-cutting and claim processing "red tape" and BS. But it's obvious - agents are on the way out with this Napoleonic figure head. The question is - will he go before we do?
Please look at the obvious at the entire Allstate situation. Transformative Growth is a process to reduce the Allstate Corp. expense ratio. The reduction is being achieved by reducing the employee foot print and a elimination of the captive agency force with a goal of selling more policies direct to consumers.
The employee transfer to vendors is leaderships way of reducing severance obligations. Agent eliminations is Tom Wilson’s goal of reducing the contractual obligations of the independent contractor agents. Moreover, the transition to direct has been a disaster. Direct business is priced 7% lower than agent business. The direct channel has a very high loss and expense ratios. This leadership regime have over 20 years of attempts to write direct policies and has NEVER been successful.
The major asset Allstate does still has is their infrastructure to write profitable property insurance. With this in mind, some competitors that have more premium than Allstate, do not have a property insurance organization as good as Allstate.
With all of these factors in mind, the Allstate auto products can be fixed with the correct management. These factors make Allstate a very attractive takeover target. If Allstate is sold, Tom Wilson, and his inner circle stand to make a great deal of money. Furthermore, the shareholders stand to make a profit also by the sale of Allstate. If you are hoping for a miracle turn around, please turn off the lights when you leave. Allstate insurance company is being prepared for sale. In my opinion, Progressive seems like the obvious buyer at this point.
There was the opportunity to let go of the trash and promote a lot a amazing employees but they chose to waste money and use a 3rd party company with an algorithm to decide who stayed and who goes. There is no regard for talent, just nepotism.
Too much damage done. Too many external, unqualified leaders hired, too many tenured, competent staff departed, too many disjointed, unconnected processes, too many disconnected employees who lack morale, and the list goes on. Very, very sad to see.
I know a high level ex-manager from Liberty who despised Shapiro. I hope Big Blue can recover