Rumor has it Allstate is attempting to purchase some of the smaller carriers in the US to increase their footprint and their PIF’s. Surprising news to me!!
7 replies (most recent on top)
Cuz that has gone sooo well the last couple times.
Has Allstate, under genius TW, ever successfully acquired and integrated another company? Nope.
"Plenty of opportunities to succeed if leadership can..."
That's where you lost me
Par for the course. Buy up smaller companies instead of fixing the failures they have now with their current product and processes. However capital has to be running thin aside from the mismanagement of funds that are set aside for Tommy's disgraceful bloated bonuses.
Same losing strategy they’ve employed for years. Only way they’ve been able to increase PIF.
No excess cash to purchase carriers as we've lost billions in the last 2 years, and share repurchase program suspended. Plenty of opportunity to succeed if leadership can simplify the strategy, go big on a few initiatives, and get claim department back on track following the era of Shapiro, Rosen, and Brandt. Significant cost cutting in claims was a mistake, as the AOR was competitive with other carriers on expense basis, and outperformed in Fast Track industry loss comparisons. The expense gap has historically been on the Underwriting side, which included costs associated with agency distribution, product, a large home office, finance, HR, etc.
Could be why they raised that "Series J" round of funding (the one that hovered just above junk status).