One year after laying off 3,800 employees included in its Transformative Growth Plan, Allstate recently announced that it is closing and selling its 54-year-old headquarters in Northbrook, a township that's a northern suburb of Chicago.
The headquarters for that insurance company founded in 1931 would be a six-building complex on 122 acres.
One of the country's largest publicly held personal insurers, Allstate employs over 44,000 in the U.S. Some 95 percent of Allstate employees now work remotely during this pandemic.
“Allstate's employees convey more choice about where they work and lots of are choosing to work from home,” company spokeswoman Mallory Vasquez told the Chicago Tribune. “As an effect, we will sell our office in Northbrook but plan to maintain our significant presence within the Chicago area.”
Allstate has Chicago work place at River Point and also the Merchandise Mart that's available to employees. Vasquez told the Chicago Tribune that Allstate determines if it needs more office space when employees begin returning to office work in earnest.
There is probably no big hurry for your. Allstate's $5.5 billion net gain this past year was up 17 percent over 2022, and in its annual report, the organization said remote employees were “maintaining internal controls and productivity.”
On its Careers website, the company solicits employees with remote operate in mind: “Allstate has small company opportunities available where you can financial, work for yourself straight from home, or work for a small business that makes an effect from our community.”
The bulk of Allstate jobs promoted on its site seem to be remote. Of these with a location listed, most are from the hybrid variety.
Allstate's Transformative Growth plan was initiated in 2022 once the company combined all its insurance branches – Allstate, Esurance, Encompass, Answer Financial – into one business design. It then eliminated Esurance as a brand, resulting in lower expenses.
“The goal of the Transformation Plan is to improve personal property-liability share of the market by expanding customer access, improving customer value and purchasing marketing and technology,” Allstate. “Customer access has been expanded by merging Esurance and Allstate brand direct operations. Improving customer value includes increasing the competitive price of car insurance, which requires cost reductions to keep margins.”
According to a U.S. News study released in July, Allstate offered the costliest coverage among “nine of the biggest car insurance providers in the nation.” The research showed Allstate automotive insurance charges were about 35 percent more than the nation's average.
Broken down by coverage type for annual cost, Allstate was $434 more costly compared to national average for low-level coverage, $467 higher than the national average for mid-level coverage and $494 a lot more than the national average for high-level coverage.
U.S. News gave Allstate 3.6 out of 5 stars. For any pro, U.S. News mentioned it's simple to file claims. Cons were, “Prices not competitive” and, “Low rating for customer loyalty and likelihood to resume.”
Allstate is punting the slumping life insurance coverage part of its business for which sales happen to be diving since 2022.
Early this month, Allstate closed on its sale of Allstate Life Insurance Company of New York to Wilton Re for around $400 million.
“Closing on the sale of ALNY is a significant step in Allstate's strategy of increasing personal property-liability share of the market and expanding protection services while deploying capital out of the life and annuity businesses,” said Mario Rizzo, Chief Financial Officer of Allstate, inside a release.
A $2.8 billion sale of their broader Allstate Life insurance coverage Co. to Blackstone is anticipated to shut this season.
Allstate's annuity sales were discontinued in 2022.
Allstate said those sales of life insurance companies “will complete Allstate's exit from the traditional life and annuity businesses. Allstate agents and exclusive financial specialists continue to meet customers' needs by providing a full suite of life insurance coverage and retirement solutions from third-party providers.”
On the flip side, Allstate decided to buy Ohio-based, non-standard car insurance provider SafeAuto for $300 million in cash last June. SafeAuto focused on providing state-minimum private-passenger auto insurance in 28 states.
“SafeAuto will accelerate our strategy of offering affordable protection solutions by lowering costs [leading to] higher growth,” said Peter Rendell, Allstate's President, National General, Property and Casualty, inside a release.
That transaction is expected to soon close.
