Could “business sale” be referring to them wanting their pet project Farmers Insurance to sell 21st Century Auto? I hear that several of the direct auto platforms are not profitable…
Farmers loves 21st. 21st is their only direct platform (that’s why they bought them, it as cheaper than creating one) and has contributed better growth than the agent businesses over the past few years. They’re moving 21st people into areas where they’re having bad results to turn them around. They’re consistently selected as having best practices across Farmers brands, and the only thing that drove down 21st’s profitability last year was Farmers’ interference in their product. And Farmers knows it.
Direct Auto models, such as 21st Century, E-surance and Progressive Direct, have lacked customer retetion numbers that are seen in agency channel business. Customers that do business with these channels are more transient in nature, and will move for a dollar. I have heard that 21st Century has been “for sale” since early 2013. If it were the Holy Grail that some folks think it is / was, then FIG would want to hold onto it like grim death.
Zurich may be getting ready to sell FIG. This has been the speculation for the last few years, with all the negative changes that have happened at FIG.
I want everyone’s opinion, who would want to buy Farmers or 21st?
They have shown that they a not a profitable piece of the Zurich portfolio, so who would want them?
Would it be another investment based firm? Or another captive insurer trying to increase market share?
Anyone have any ideas of where they may be headed? Any out of the box thinking?
I hate to disagree with you but Farmers is a very profitable part of Zurich, since they do not own the Insurance Exchanges but the Management Company, they do not have a profit problem with FIG Inc. Where they may have a problem is the loss of agents, PIF and NB writings and this would affect the amount of money that the Management Company pays each quarter. Not the same as not being profitable to Zurich.
Muskieman, whoever owns Farmers has the right to scrape up to 18% off the top of each written premium dollar written. Not earned, but written. Before FIG pays the light bill, they have to send up to 18% to the owner. Even if FIG is unprofitable, they still have to send the tip to to the owner. Whoever owns FIG, this is a good deal! Not so much of a good deal for the customers and the agents, but a good deal for the “pimp”! Who wouldn’t want to buy FIG?
Could “business sale” be referring to them wanting their pet project Farmers Insurance to sell 21st Century Auto? I hear that several of the direct auto platforms are not profitable…
Farmers loves 21st. 21st is their only direct platform (that’s why they bought them, it as cheaper than creating one) and has contributed better growth than the agent businesses over the past few years. They’re moving 21st people into areas where they’re having bad results to turn them around. They’re consistently selected as having best practices across Farmers brands, and the only thing that drove down 21st’s profitability last year was Farmers’ interference in their product. And Farmers knows it.
Farmers may love 21st, but whatever happened to Foremost? They used to be Farmers non-standard auto platform. What lead to the change?
Direct Auto models, such as 21st Century, E-surance and Progressive Direct, have lacked customer retetion numbers that are seen in agency channel business. Customers that do business with these channels are more transient in nature, and will move for a dollar. I have heard that 21st Century has been “for sale” since early 2013. If it were the Holy Grail that some folks think it is / was, then FIG would want to hold onto it like grim death.
Zurich may be getting ready to sell FIG. This has been the speculation for the last few years, with all the negative changes that have happened at FIG.
I want everyone’s opinion, who would want to buy Farmers or 21st?
They have shown that they a not a profitable piece of the Zurich portfolio, so who would want them?
Would it be another investment based firm? Or another captive insurer trying to increase market share?
Anyone have any ideas of where they may be headed? Any out of the box thinking?
I hate to disagree with you but Farmers is a very profitable part of Zurich, since they do not own the Insurance Exchanges but the Management Company, they do not have a profit problem with FIG Inc. Where they may have a problem is the loss of agents, PIF and NB writings and this would affect the amount of money that the Management Company pays each quarter. Not the same as not being profitable to Zurich.
Muskieman, whoever owns Farmers has the right to scrape up to 18% off the top of each written premium dollar written. Not earned, but written. Before FIG pays the light bill, they have to send up to 18% to the owner. Even if FIG is unprofitable, they still have to send the tip to to the owner. Whoever owns FIG, this is a good deal! Not so much of a good deal for the customers and the agents, but a good deal for the “pimp”! Who wouldn’t want to buy FIG?