The insurer first disclosed its Transformative Growth Plan at the end of 2019.
Two primary components of the Transformative Growth Plan unveiled in December 2019 include Allstate agent commissions as well as the company’s insurance advertising.
The plan is meant to completely overhaul the insurer’s strategy toward business, efficiency and expenses.
The insurance company’s plan includes details regarding the changes it is making to how it does business, how it is increasing its efficiency and cutting its expenses. Thomas Wilson, the insurer’s chairperson, president and C.E.O. discussed the plan during the Q4 2019 call with analysts. Among the central changes highlighted included the Allstate agent commissions and how they are earned.
Wilson explained that these and other upcoming changes are, to a degree, a reflection of dissatisfaction toward the insurance company’s performance in comparison with its competition regardless of the insurer’s solid performance overall.
“We’re growing, but GEICO and Progressive are growing auto insurance market share faster, through massive advertising spending and low-cost structures,” said Wilson near the call’s beginning.
The insurer determined that a new focus on advertising and Allstate agent commissions are vital.
The insurance company achieved good results overall last year. It produced a net income of $1.7 billion in last year’s Q4, which is the equivalent to $5.23 per diluted common share. The year before, that same quarter saw a $585 million loss, having been greatly impacted by factors such as the California wildfires. This represented a negative $1.71 per diluted common share…Read more>>