No wonder they can't make money on auto. They insure bad drivers then piss off good drivers their clients hit with surveys that they incessantly call you at home about at 8:45 at night--even after I have told them I will not take the survey. Third time this week. Stupidity at best, harassment most likely. State Insurance Board next.
I made like $400 on PennyStock101 (org) last nasdaq play. (search em) I like how they alert the most undervalued otcmarket, nyse and nasdaq companies.
BRK had the same problem as Allstate. Geico got hit with big auto casualty claims. They will also be raising rates, to deal with increased costs.
Allstate will be giving a 4% discount on collusion to drivers who leave their cars in the garage. If you you can prove to the satisfaction of the underwriting dept that you drive your car less then 3 miles per year you will qualify for this discount. Right Frank?
My guess is they will report the same scenario. Drivers are becoming more and more distracted with their phones while driving. Just yesterday in Charlotte a car had to swerve to miss stopped traffic on major highway, hit bridge and imploded into flames. Shut down major Highway for hours. Driver and passenger escaped vehicle and stated that traffic came to a "sudden" stop....yup. Should have said when I picked my head up from looking at my phone the traffic in front of me was stopped.
"grossly overpaid" is an understatement, it looks like they are stuffing their pockets before jumping off a runaway train. They sold a boatload of shares they've granted themselves with zero purchases over the past 6 months and beyond, a huge tell that shldrs overlooked. Putting it in a clearer perspective it seems the plan over the last 5 yrs was to use $billions to buyback shares which automatically artificially increase per share earnings and everybody gets excited, dive in, pump up the sp, and then they dump this pig on the bagholders while they cash out and head for the exits. Since their ipo, the mgmt crew of this co. never had a problem gorging themselves with extremely lavish stock options, not a theory, its all there in black and white. TW I commend you, absolutely brilliant!
Now we will see if they report, large losses, due to big increases of auto accidents in this quarter, just as Allstate. If they do not, then something really smells bad.
Tom Wilson should be terminated as he has done to thousands of productive Agency Owners who represented far more value and built the great company he is now destroying.
May he reap what he has sown!!!!
Sentiment: Strong Sell
this insurance company encouraged its agents to acquire aging books of businesses - all the while knowing they were exiting traditional insurance lines and that they were transitioning to an internet model. Get ready for the lawsuits.
they charge for things that you don't even need,
My husband and I were paying for a boat for 6 years, never had a boat, read the fine print-- finally Allstate corporate offices had us sig a waiver that we wouldn't sue, they gave us all our money back, then we switched to another carrier and saved 650 bux per year..same insurance.