Allstate Insurance Overview: Allstate Insurance was founded in 1931 and is based in Northbrook, IL. Allstate Insurance has these main lines of business:
- Auto Insurance
- Property Insurance
- Life Insurance
- Commercial Insurance
- Retirement and Investment Products
- Banking Services
Size: Allstate Insurance reports these figures as of September, 2008:
- Employees = 70,000
- Exclusive Agencies = 14,900
- Total Assets = $156.4 billion
- Policyholders = 17 million households
- The largest publicly-held personal lines insurer in the U.S.
Positives: Allstate Insurance is one of the best-known companies and brands in the U.S., across all industries. This is a great aid to its sales effort. Originally a subsidiary of Sears, Allstate Insurance was spun off in 1993.
Allstate Insurance is rated A+ by A.M. Best, AA by Standard & Poor’s, and Aa2 by Moody’s.
Negatives: Allstate Insurance has posted a loss through the first nine months of 2008, down sharply from a strongly profitable 2007. The culprits were heavy realized capital losses in its investment portfolio as a result of the 2008 bear market, plus catastrophic losses from hurricanes Ike and Gustav. Net unrealized losses are $4.1 billion, but the company assures investors that it has adequate liquidity, such that it does not anticipate having to sell securities at depressed prices to raise cash.
Allstate Insurance has longstanding image problems regarding customer service and claims resolution, with a reputation for aggressively disputing and delaying the payment of claims.
