The key to this story is the statement that companies desire a lower cost environment. Indiana, with a Conservative governor has a lower cost environment than blue Connecticut. Dallas/Ft Worth has a lower cost environment so we see the big expansion of State Farm away from disastrous Illinois and Liberty Mutual opening a large office there away from Boston. Blue States offer nothing but higher taxes, higher cost of doing business with inflated payrolls.
The mergers of large insurers isn’t based upon low cost/ tax environments. So, Agent is wrong in that regard.
However, the decision about the domicile state of the merged entity is certainly impacted by the workforces in each state AND the economics of the state, including taxes, cost of living, etc. So, Agent has a point regarding ‘strategic positioning’ of corporate resources and domicile.
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The mergers of large insurers isn’t based upon low cost/ tax environments. So, Agent is wrong in that regard.
However, the decision about the domicile state of the merged entity is certainly impacted by the workforces in each state AND the economics of the state, including taxes, cost of living, etc. So, Agent has a point regarding ‘strategic positioning’ of corporate resources and domicile.