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Summary (SWOT analysis, News, Investing Strategies)

The Allstate Corporation, through its subsidiaries, engages in the personal property and casualty insurance business, as well as in the life insurance, retirement, and investment products business in the United States and Canada. It operates in two segments, Allstate Protection, and Allstate Financial. Allstate Protection segment sells private passenger auto and homeowner's insurance under 'Encompass' and 'Deerbrook' brand names primarily through agencies. This segment also sells various personal property and casualty insurance products, including landlords, personal umbrella, renters, condominium, residential fire, manufactured housing, boat owners, loan protection, and selected commercial property and casualty products; and provides emergency road services. Allstate Financial segment provides life insurance, retirement and investment products, and supplemental accident and health insurance products to individual and institutional customers. Its principal individual products comprise deferred and immediate fixed annuities, interest-sensitive, traditional and variable life insurance, and supplemental accident and health insurance. This segment markets its products through multiple intermediary distribution channels, including agencies, independent agents, banks, broker-dealers, and specialized structured settlement brokers. The Allstate Financial segment also offers various banking products and services consisting of certificates of deposit, money market accounts, savings accounts, checking accounts, first mortgage loans, home equity loans, and agency loans. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois.

The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States and the second-largest of all personal lines insurers in the U.S. Allstate was founded in 1931 as part of Sears, Roebuck and Company.

The company slogan is "You're in good hands." The current advertising campaign, in use since 2004, asks, "Are you in good hands?" Their current English spokesperson is Dennis Haysbert, while their Spanish spokesperson is Esai Morales. Allstate sponsors various sporting events, including the Allstate Sugar Bowl, the Allstate 400 at the Brickyard NASCAR race, and the United States Olympic Committee.

Products

Allstate sells auto insurance, home insurance, life insurance, umbrella insurance, and commercial insurance, to name a few. Its advertising campaign is centered around its "Your Choice Auto" product, which offers accident forgiveness and lower deductibles.

Auto insurance claims

An article published on May 2006 in Business Week details how Allstate routinely tries to deny its policy-holders their full legitimate benefits, often paying out less than they're entitled to. Business Week writes:

"Claimants in the 'good hands' category may get swift reimbursement, but they will end up with less than they're entitled to," he says. Those who hold out for more — and retain a lawyer to help them get it — face battering in the courts and potentially years of delay. "You can get your claims resolved promptly or fairly," he argues, "but not both." Also according to the article, "Allstate deploys a variety of systems…to make sure it pays the minimum necessary — and it plays hardball with those who seek more."

An investigative report in February 2007 by CNN found that major car insurance companies, like Allstate, are increasingly fighting auto insurance claims from those who incurred injuries by their insured members.

Homeowners insurance

The PBS television program Now, in conjunction with Bloomberg Markets magazine, did an exposé regarding Allstate's home owners insurance policy change. The idea was to increase profit by not living up to the customers' policy expectations.

Allstate changed the terminology of the policy to "extended coverage", in order to convince the policy holders that coverage was still the same or even better. In reality the coverage was lowered.

Interviewed customers said insurance agents lied about what was covered with the policy change. When claims were filed, Allstate fought tooth and nail to avoid paying the full amount of the claims. Allstate used delaying tactics in court, attempting to cause the customer to give up.

The program also mentioned State Farm as having used the same consulting firm, McKinsey & Company, that came up with this idea. State Farm customers were complaining as well.

The unhappy insurance customers urged everyone to review their policies to make sure their coverage is adequate.

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