Unfortunately Allstate is keeping the ‘terminated agents’ books of business for themselves, thereby creating a favorable increase in income. Let’s see, a$100 mil in terminated agents books that we now keep equals $10 mil for us! A great way to run a company. Management needs to wake up since the above figures show a 1.9% decline in policies in force for auto and a 4% decline in homeowners policies in force. Getting rates every year is not how you run a company.
Have the operating cost improved because they have terminated so many agents and agents that have purchased the books of the agents???
Unfortunately Allstate is keeping the ‘terminated agents’ books of business for themselves, thereby creating a favorable increase in income. Let’s see, a$100 mil in terminated agents books that we now keep equals $10 mil for us! A great way to run a company. Management needs to wake up since the above figures show a 1.9% decline in policies in force for auto and a 4% decline in homeowners policies in force. Getting rates every year is not how you run a company.
They actually make $30 million from those agent’s books. 60% loss ratio, 10% expenses. Do the math.