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The Allstate Corporation Message Board

  • a_Quiet_One a_Quiet_One Aug 14, 1999 6:30 PM Flag

    will724: interesting link, thanks! n/t


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    • Insurer Allstate has the potential to return to a
      valuation of 14 times earnings in a two-year time frame
      which would lift the stock to $52 per share, Marcin


      To print this

      September 01, 1999 13:20

      FUND VIEW - Inexpensive
      stocks seen plentiful
      By Cal Mankowski
      NEW YORK,
      Sept 1 (Reuters) -

    • <EOM>

    • points regarding cross selling. I wish I had a solution.

    • My wife & I experienced a total loss of our boat
      during a hurricane in Wilmington,North Carolina a few
      years back. I can attest first hand that when we
      arrived to look at the damage in the marina, it was
      comforting to see the ALLSTATE mobile vehicle in the parking
      lot. They treated us very well and made the claim
      process a non-event.
      We have all of our insurance
      needs with Allstate and would not consider anyone
      p.s. Oh yes, we also own a good size amount of shares
      in Allstate !

    • Actually, I believe that the TV advertising and
      coverage of the CAT teams is very important in developing
      the Allstate name and brand. People are supposed to
      believe that they are in good hands with Allstate. Plus,
      the new marketing campaign is trying to convince
      people that they will pay more for insurance through
      Allstate, but they can expect to get a lot more in
      exchange. The CAT team publicity is supposed to
      differentiate Allstate from "HomeOwner's Insurance-R-Us", an
      offshore insurance company with no physical presence
      anywhere on this planet, but rates so low they can't be

      The fact is, most people never even think about their
      insurance until a catastrophe hits. Thus, while the people
      actually getting hit by the hurricane may not be watching
      TV, there are 200 million other Americans watching
      the TV coverage of the hurricane and Allstate's CAT
      teams showing up on the scene. Those viewers, sitting
      safe at home, are the ones who are supposed to be
      thinking "Wow! If anything like that ever happens to me, I
      sure would be glad I paid the higher premiums with

    • Thanks for your thoughtfull response. Once again, I hope you are correct.
      Fewer years till retirement,


    • Mongo....I think you are right on the mark. Cross
      selling is one of the items that helps ALL separate
      itself from the pack. PGR and GEICO can't do this more
      you and if you trust the company with your house or
      car, why not both? Perhaps the Pricing needs to be
      tightened up to help the agent get both lines, or better
      incentive need to be given to get the agent there. I posted
      a message once spelling out ways to grow the
      company, one idea is to let customers come it through many
      channels, an agents, direct, a customer service rep, and
      then let an agent capture that first line on business
      (and the renewal commissions) by selling the customer
      a second line....perhaps a commission "bonus" on
      the second line.

      Allstate also only has Life
      policies on about 12% of its auto customers....granted not
      everyone has a life policies, but now with Variable
      Annuities with Putnam and a list of a ton of customers what
      a gold mine to tap!

      In order to acheive the
      long term growth rate cross selling and valuing
      customers for the long term is a must.

    • This may be particular to certain markets where
      ALL can't compete on price but, at least for the last
      two years in my area, agents who tried to cross sell
      and pitch package discounts to existing clients
      actually lost more business than they brought in.

      It works like this: Agent Bill calls his insured
      Fred who has three cars insured with ALL and his home
      with Peerless. Bill tells Fred that he can get him a
      discount on his autos if he can insure his home as well.
      When Bill gets back to Fred with the homeowners quote
      it's about the same price or maybe $25 to $50 more per
      year...not a big deal. The rub comes because Fred, no dummy
      he, says: "Hmmm...I wonder if Peerless could package
      my autos with my home. After all, even though I like
      Bill, a buck is a buck and he can't give me the
      water/sewer backup that I have with Peerless or the debris
      removal that I have on my current homeowners." Fred calls
      his independent agent who quotes his three cars and
      saves him $200 a year PLUS the 10% discount on his
      home. Fred calls Bill up the next day to thank him for
      his past service and to cancel his auto

      You can talk about brand loyalty and not focusing on
      price but until the public latches on to that concept,
      all the cross selling programs in the world are just

      And, for you nay sayers who will point fingers a
      accuse agents of not doing the job: I've been on both
      sides of the fence. I wtake more business away from ALL
      because of the reason stated above than any other
      company....I also lost more business prior to leaving ALL by
      trying to cross sell than by just working the renewals.
      Ironic, sad and true. Just my humble opinion.

    • The ongoing discussion of market dynamics and
      competitor performance, particularly as they relate to
      specific companies (Allstate and Progressive for instance)
      is both informative and potentially of significance
      for people making investment decisions. As such, I
      enjoy and appreciate your notes and those of some
      others as well.

    • I should have realized from reading your prior
      messages that
      you were trying to make a point directed
      at 'the detractors'.
      Your posts are both
      interesting and informative.

      I'm glad ronko asked what
      CAGR was. I assumed that you were
      to/mispelling the 1995 Breeders Cup champ!!!!!!!!:)

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