Allstate: Auto Insurance, Life & Retirement, Financial Services

Allstate

www.allstate.com
NYSE: ALL
(Finance: Insurance Services)

Allstate, a publically traded insurance and finance company, was founded in 1931 as part of Sears, Roebuck & Co. and is currently the second largest personal lines insurer in the United States. Thomas Wilson is the CEO and the Allstate headquarters is found in Northbrook, Illinois.

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Services
Auto Insurance, Property Insurance, Off-road Vehicle Insurance, Life Insurance Business Insurance, IRAs, Mutual Funds
Annuities, Checking, Savings, Home Equity Loans, Mortgages

Overview
Allstate is a leading insurance carrier that covers all areas of insurance needs, including life, health, automotive, property, and power sports. In addition to offering insurance services, Allstate also offers several financial products and services such as mutual funds, annuities, college savings programs, mortgage loans, home equity loans, savings accounts, and checking accounts.

Auto insurance coverage is available in liability coverage – covers costs of people or property injured or damaged in an accident you’re at fault in; medical payments coverage – helps pay necessary medical bills for covered accidents; uninsured motorist coverage – helps cover medical or damage expenses if you or a passenger are injured or if the car is damaged by another driver without insurance.

Vehicle protection coverage includes collision coverage, which helps protect against repair costs should your car be involved in a covered accident, and comprehensive coverage, which covers accidents that don’t necessarily involve a covered accident, such as storm damage, vandalism, or some other passage object.

Allstate provides detailed insurance and financial solutions designed to help customers plan for their future. Personal finance guides cover topics about obtaining affordable term life insurance, comparing and reviewing insurance policies, planning for retirement, budgeting current funds, getting out of debt, and homeownership.

Allstate has worked its way to the top of the insurance pile to become the second-largest provider of personal lines insurance in the US, second only to State Farm. The Allstate Protection division includes automotive, property, casualty, homeowners, and life insurance services throughout the US and Canada. Allstate Financial provides life insurance through subsidiary companies Allstate Life, Lincoln Benefit Life, and American Heritage Life. In addition, Allstate Financial targets wealthy people and middle-income earners for the various investment products they offer. The Allstate Corporation also offers emergency roadside assistance provided through Allstate Motor Club and a nationwide online bank through Allstate Bank.

Allstate Protection is a rollover of all the corporation’s property and casualty operations, while all annuities, life insurance, and banking services fall under Allstate Financial. Allstate Protection accounts for 90 percent of total premiums for private passenger auto and homeowners insurance, and more than 40 percent of their sales are generated through California, New York, Florida, Pennsylvania, and Texas.

Allstate runs a network of roughly 12,300 agencies that sells the firm’s insurance products. In addition, there are independent agencies that sell Allstate’s Encompass and Deerbrook products too. In recent years, telephone and internet sales have increased dramatically. Financial products are sold via exclusive and independent agencies, banks, brokerages, and other financial institutions.

At one time Allstate had operations in Japan, Germany, and Italy, however the company has pulled back its reach to focus solely on the US and Canada, their core markets.

Allstate was not immune to the financial crisis which weakened the US economy. In 2008, Allstate Financial posted a loss of $1.72 billion. Allstate turned down funding from the US Treasury’s Troubled Asset Relief Program 2009, managing to stay in business due to its strong liquidity and capital. Allstate also initiated methods for reducing its financial risks, especially in reference to natural catastrophes.

In the aftermath of Hurricane Katrina, Rita, Ike, Wilma, and Gustav, Allstate lost billions of dollars. Because of this, the company stopped issuing new policies for homeowners with properties along the Gulf Coast, Connecticut, New Jersey, and Delaware. Allstate also increased premiums for Florida residents, and for its Floridian customers whose policies would not be renewed, a deal was made with Royal Palm Insurance Company to have Allstate agencies offer property policies.

Earthquake insurance is a thing of the past for Allstate and its policy holders too. In California, provisions to homeowners underwriting requirements have been made that reduce Allstate’s exposure to claims for fires in the wake of earthquakes.

In 2009, Allstate expanded its online services through Next Gen Self-Service, which now allows customers and agents to perform certain tasks and access information 24 hours a day.

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