Investors clearly betting on a turnaround, but still a money and customer losing P&C enterprise through 2023. Auto rates grinding in while inflation continues to moderate, which will improve profit. What else is going on? The general tone on this board remains negative.
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Sector rotation.
Wild after hours trading on Friday the 12th, with stock down $12 from $151 to $139. Small volume may not be reflective of where the market will settle when stock opens on the 16th. Somebody felt compelled to dump their shares, which could be for many reasons. OR do they have other information on earnings, activists, leadership, etc?
In an earlier thread a poster gave a plausible and thoughtful explanation for how Tom rose up in the ranks. Apparently his talent lies in "financial engineering", which sounds sketchy and probably is. Think stock buy-backs and the like.
This is the only explanation I've seen that makes sense. He certainly doesn't inspire anyone with his "vision". Acquisitions are clearly not his strength. He has no talent for developing leadership talent and building strong teams.
“If you can’t handle my bumpy ride, then you don’t deserve my well execution”
- Tom Wilson
The stock price is an indicator that nothing will be done to fix Allstate's culture and leadership.
It's not "good news"
I like it! Where are all of the losers who predicted just a couple months ago that the stock would drop below $100. Hopefully they are the same losers that bragged about leaving the company. Go sulk somewhere else.
Agency offices and corporate raised pricing which made customers increase deductibles and lower liability. This made profits for all corporate, share holders, even independent offices that survived transformative growth made money. Raise price, decrease company liability, exclude high risk areas with strict underwriting guidelines equals profit. Offshore every one out of four jobs overseas. Create apps that make the customer do their own work so cut out those employees. Still growing pains with customers that select wrong coverage. Example they had 500k liability for ten years but buy their policy online with state min abd no collision. Surely self service purchases don’t end with accidentally buying too much coverage.
The rates in CA, NY, and NJ will go a long way toward profitability in 2025, but 2024 is still going to be a challenge. The goal the last few years has just been to be profitable in the year, but that’s not worked. Maybe the third time is the charm!