Allstate

An American insurance company

Categories

Financial and Banking  

#695

Rank

$26.6B

MarketCap US

US United States

Country

Summary

Allstate offers a protection product through multiple brands including auto, home, life, and other insurance. Allstate is one of the largest U.S. property-casualty insurers. Personal auto represents the largest percentage of revenue, but the company offers homeowners insurance and other insurance products. Life insurance contributes about 10% of revenue. Allstate products are sold in North America primarily by about 10,000 company agencies. Founded in 1931, Allstate is based in Northbrook, Illinois, United States.

Allstate's products and services include auto insurance, home insurance, renters insurance, life insurance, retirement planning, and investment services. The company also offers innovative digital tools such as QuickTrip, Drivewise, and Digital Locker to help customers manage their policies and claims more efficiently. Allstate has also expanded its services to include banking products such as savings accounts, certificates of deposit, and insured money-market accounts through its Allstate Bank.

Over the years, Allstate has continued to grow and expand its business, with a focus on innovation and customer satisfaction. The company has expanded globally with operations in Canada, India, and Northern Ireland. It has also acquired several companies such as Esurance, Answer Financial, and SquareTrade to provide more comprehensive insurance solutions to its customers.


History

In 1931, Allstate was launched on April 17th, during the height of the Great Depression when many Americans were grappling with financial insecurity. The insurance company was named after Sears' tire brand and initially offered auto insurance through direct mail and the Sears catalogue. Despite posting underwriting losses for the first two years, Allstate's active policies reached 22,000 by 1933, and the company earned its first profit of $93,000. That same year, Allstate's Richard E. Roskam sold insurance at a booth in the Sears pavilion at the Century of Progress World's Fair in Chicago.

In 1934, Allstate opened its first permanent sales office in a Chicago Sears store, and by 1936, the company's premium volume had reached $1.8 million. In 1941, New York passed a law requiring auto insurance, which was soon followed by other states, resulting in revenue from premiums more than tripling to $6.8 million that year, with over 189,000 policies in force. Also, this year saw the passage of a law in New York that established drivers' financial responsibility for damage or injuries resulting from auto mishaps.

James Barker was named chairman of Allstate's board in 1943, and in 1947, a change in the company's structure facilitated its growth. The Allstate Headquarters Building was completed at 3245 W. Arthington Street in Chicago as part of the Sears, Roebuck and Company Complex in 1949. The widely recognized slogan, "You're in good hands with Allstate," was first used in 1950.

In 1952, Allstate created the Allstate Foundation, an independent corporation funded by Allstate Insurance, to conduct its community service activities. The company also introduced personal liability insurance this year. Allstate became an international company in 1953 when it opened its first Canadian office and began selling insurance to Canadians. In 1954, Allstate began offering residential fire insurance, and in 1957, it formed the subsidiary Allstate Life Insurance Company, which grew rapidly, bringing in $1 billion in life insurance revenues after just six years in business. Commercial fire, personal theft, and homeowners insurance were also added.

In 1960, Allstate launched Allstate Enterprises, Inc., as the umbrella for a number of non-insurance-based activities, including a motor club and finance businesses such as vehicle financing, mortgage banking, and mutual fund management. The Allstate Life Insurance subsidiary passed the $1 billion mark in insurance in force in 1963, after only six years of operation. Two new subsidiaries were formed in 1964 to manage Allstate's Canadian interests: Allstate Insurance Company of Canada and Allstate Life Insurance Company of Canada.

The Judson B. Branch Research Center (later renamed the Allstate Research and Planning Center) opened in Menlo Park, California, in 1966, and the following year, the company headquarters moved into spacious new offices in the Chicago suburb of Northbrook, Illinois. In 1970, Allstate employed around 6,500 insurance agents to sell its products, and in 1972, it entered the mortgage banking business by acquiring National First Corporation.

By 1973, Allstate generated earnings of $203 million, nearly 30 percent of parent company Sears's total. The company entered the Japanese market through a joint venture (Seibu Allstate Life Insurance Company, Ltd.) and purchased Lippmann & Moens, a group of Dutch insurance operations, in 1975. Allstate also formed Tech-Cor, Inc., an auto-body research and reclamation business, in 1976.

In 1977, Allstate's Chairman of the Board, Arch Boe, expressed the need for the company to intensify its activities in the area of corporate social responsibility and change. The following year, the company established two wholly owned subsidiaries, Northbrook Property and Casualty Insurance Company and Allstate Reinsurance Company, Ltd., to expand its international operations.

By 1980, Allstate had become the sixth-largest insurance group in the United States, with net income of $450 million on revenue of $6.2 billion and assets of $10.5 billion, employing 40,000 people. In 1981, Allstate acquired Surety Life Insurance Company and Lincoln Benefit Life Company from the Dean Witter Reynolds group.

In 1982, Donald F. Craib, Jr. was named Chairman of the Board at Allstate, as Sears Financial Network. The following year, Allstate had the largest claim staff in the insurance industry, consisting of 12,500 employees. In 1984, the company introduced the Neighborhood Office Agent program to make agents more accessible to customers, and in 1985, Allstate began moving agents out of Sears stores and into neighborhood offices.

Allstate's growth continued in 1986, reporting income of over $750 million on revenue of $12.64 billion. The following year, the company launched the Allstate Advantage Program, a three-tiered rating system for auto insurance, and made several business insurance developments.

In 1989, Wayne E. Hedien was named the new Chairman and Chief Executive Officer of Allstate. The company launched an aggressive advertising campaign in 1990 using the motto, "Leave It to the Good Hands People," but experienced decreased net income due to rapid growth. By 1991, Allstate had divested itself of several smaller subsidiaries and finished selling off its real estate holdings.

In 1993, the Florida Legislature approved a catastrophe fund bill designed to protect insurance consumers and the insurance industry from the financial devastation caused by severe hurricanes. The same year, Allstate went public on the New York Stock Exchange with Sears selling 19.8% of the company.

A natural disaster in 1994 led to a dip in profits for Allstate. However, in 1995, the company became completely independent when Sears spun off the remaining 80% stake in the company, distributing 350.5 million shares of Allstate stock to its stockholders. Despite the damage done by Hurricane Opal, Allstate posted a record $1.9 billion in income on $22.8 billion in revenues.

In 1996, Allstate launched its website, www.allstate.com, and in 1998, Chief Executive Officer Edward Liddy announced that Allstate was working to become a major player in the financial services industry. The company founded a bank, Allstate Federal, later that year, which it began using to handle many of the company's own financial transactions.

In 1999, a new CEO, Edward M. Liddy, was installed, and Allstate introduced Internet and telemarketing sales, sparking the ire of agents bypassed in the new process. Allstate unveiled a new business model that created a single contract for exclusive, independent agents selling Allstate insurance. The company purchased the personal lines division of CNA Financial and subsequently renamed it Encompass Insurance Company, which is written by independent insurance agents, as opposed to the direct writing that constitutes the core part of its business.

In 2000, Liddy fired all 6,200 agents as employees of the company and offered them positions as independent agent contracts. Despite the changes and challenges over the years, Allstate continued to thrive and evolve as a leading insurance provider.

had a difficult year in 2001 due to increased losses in its auto insurance business. The drop in gas prices and the trend towards driving rather than air travel after the 9/11 attacks contributed to the decline. In response to their disappointing financial performance, Allstate altered policies increased premiums, and streamlined operations to improve their situation. However, analysts predicted that the repercussions of the poor year would continue to affect the company.

Allstate launched Allstate Bank in October 2001, offering savings accounts, certificates of deposit, and insured money-market accounts. The company's net income for the year was $1.2 billion on revenues of $28.9 billion. Allstate also entered the world of internet-based services and toll-free customer service, which was well-received by customers, with approximately 1 million monthly hits on allstate.com and 170,000 calls per week on the toll-free helpline.

In 2002, Allstate continued to face underlying financial struggles, exacerbated by lower investment income. To address the issue, the company urged its agents to obtain securities licenses and begin selling financial services, with a particular focus on its existing base of insurance customers.

Allstate underwent significant changes in the years that followed. In 2010, the company launched a marketing campaign called "Mayhem," featuring actor Dean Winters, who personified the various hazards and mishaps that drivers might face.

In 2011, Allstate announced its purchase of Esurance and rate-comparison site Answer Financial for approximately $1 billion. The following year, Allstate Solutions Private Limited, also known as Allstate India, opened in Bangalore as a technology and operations centre that provided software development and business process outsourcing services to its US parent.

In 2014, Allstate introduced Drivewise Mobile, the industry's first mobile telematics app, which allowed drivers to monitor their driving habits and improve their safety on the road.

In 2017, Allstate acquired SquareTrade, a consumer electronics and appliance protection plan provider. Two years later, the company donated $75,000 to the Red Cross and partnered with the organization to distribute over 2,900 disaster kits in California.

In 2020, Allstate announced its acquisition of National General Insurance for $4 billion. Despite the challenges it has faced over the years, Allstate remains a major player in the insurance industry, offering a wide range of products and services to customers across the United States.


Mission

Allstate's mission statement is to "protect people from life's uncertainties" by providing "quality protection and retirement solutions" to their customers. This mission statement emphasizes Allstate's commitment to providing its customers with the tools they need to protect themselves financially and prepare for retirement, so they can face life's uncertainties with confidence.

Both the mission and vision statements of Allstate reflect the company's core values, which include integrity, innovation, customer focus, financial discipline, and social responsibility. Allstate is committed to upholding these values in all aspects of its operations, from product development and customer service to community outreach and philanthropic initiatives.


Vision

In addition to its mission statement, Allstate also has a vision statement, which is "to be the customer's first and best choice in the products and services we provide." This vision statement underscores Allstate's goal of delivering superior customer service and innovative products that meet the evolving needs of its customers.


Key Team

Gregg M. Sherrill (Board Member)

Chris Gates (Chief Technology Officer)

H Riley (Board Member)

Christina Hwang (Senior Vice President - Chief Tax Officer)

Jacques P. Perold (Board Member)

Courtney VanLonkhuyzen (Senior Vice President - Chief Ethics & Compliance Officer, Chief Privacy Officer, DGC Innovation Law)

Judith A. Sprieser (Board Member)

Dana Goldstein (Chief Compliance Officer)

Kermit R. Crawford (Board Member)

David Szweda (CIO, Allstate Dealer Services)

Margaret M. Keane (Board Member)

Don Civgin (Senior VP/CFO)

Michael L. Eskew (Board Member)

Donald Brown (Board Member)

Thomas Wilson (CEO)

Andrea Redmond (Board Member)

Donald Brown (Board Member)


Recognition and Awards
Fortune 500: Allstate has been included in the Fortune 500 list of the largest companies in the United States every year since the list's inception in 1955. World's Most Ethical Companies: Allstate has been recognized as one of the World's Most Ethical Companies by Ethisphere Institute for 8 consecutive years from 2014 to 2021. Best Employers for Diversity: Allstate has been recognized as one of the Best Employers for Diversity by Forbes in 2021. America's Best Employers: Allstate has been recognized as one of America's Best Employers by Forbes in 2021. Best Employers for Women: Allstate has been recognized as one of the Best Employers for Women by Forbes in 2021. 100 Best Companies to Work For: Allstate has been recognized as one of the 100 Best Companies to Work For by Fortune Magazine in 2021. Corporate Equality Index: Allstate has received a perfect score of 100 on the Corporate Equality Index, a national benchmarking survey and report on corporate policies and practices related to LGBTQ workplace equality, administered by the Human Rights Campaign Foundation, for 16 consecutive years from 2007 to 2022. Civic 50: Allstate has been recognized as one of the Civic 50 by Points of Light for its commitment to community engagement and corporate social responsibility in 2019 and 2020. Women's Choice Award: Allstate has received the Women's Choice Award for America's Most Recommended Home Insurance and Auto Insurance in 2021.

Products and Services
  • Auto insurance: Allstate offers comprehensive coverage for cars, trucks, and other vehicles. Customers can get quotes, purchase policies, and manage their accounts online.
  • Home insurance: Allstate's home insurance policies cover damage to homes and personal property, as well as liability for accidents that occur on the property. Customers can customize their policies to meet their specific needs.
  • Renters insurance: Allstate offers renters insurance to protect renters' personal belongings and liability for accidents that occur in their rental unit.
  • Life insurance: Allstate offers term life, whole life, and universal life insurance policies to help customers protect their families' financial futures.
  • Business insurance: Allstate offers a range of insurance products for businesses, including general liability insurance, commercial auto insurance, and workers' compensation insurance.
  • Retirement and investment products: Allstate offers a variety of retirement and investment products, including IRAs, mutual funds, and annuities, to help customers plan for their financial futures.
  • Banking products: Allstate Bank offers savings accounts, certificates of deposit, and money market accounts to help customers manage their finances.

References
Allstate
Leadership team

Andrea Redmond (Board Member)

Balraj Kunnath (Chief Architect and Principal Architect)

Industries

Financial and Banking

Products/ Services
Auto, Home, Life, Motorcycle, Renters, Boat, Landlord, Condo, Off-road vehicle, Business, Insurance, Retirement, Investment, Banking
Number of Employees
20,000 - 50,000
Headquarters
2775 Sanders Rd, Northbrook, IL 60062, United States
Established
1931
Company Type
General Partnership
Company Registration
SEC CIK number: 0000899051
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
ALL
Social Media

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Sun Mar 03 2024
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