Allstate Insurance Case Study Essay

The Allstate Corporation was started in 1931 as part of Sears, Roebuck and Company. In 1993, the Corporation splinted from the organization, and now it is ranked third-largest personal lines insurer. This insurance company is well established to the US people through its slogan name, “You’re In Good Hands. ” It faces stiff competition from the State Farm Company, which is ranked above it in terms of annual revenue returns. However, it is the largest publicly held corporation and the best insurance company, which makes it more stable in the financial and insurance industry (Allstate Insurance Company).

It has a market capitalization of $35. 2 million with $108. 5 billion in its total assets. On the other hand, State Form Company, which is the key competitor, have $13. 08 million market capitalization. Over the years, the Company has made great achievements from ensuring autos while starting and now it is among Fortune 500 Company. The corporation also has personal lines insurance operations in Canada and has headquarters in Northbrook, Illinois. In Canada, the organization provides protection for auto motives, homeowners’ and other property insurance products.

In the Illinois, it provides life insurance via subsidiaries such as American Heritage Life and Allstate Life. It also provides targeting affluent, middle-income consumers and investment products. The company also has an Allstate Motor Club that provides emergency road services. The life insurance policy contributes to fifteen percent of the company’s annual sales, personal properties and casualty accounts for about threefourth. Besides, the Company has made hung achievements in The US since its products are been sold in North America by non-governmental agents, brokers, and banks (Horn87).

The Company also has over 10000 individual agencies who distribute their products all over the US states and in the North America countries. The State Farm was founded in 1922 as a mutual automobile insurance company. It only specialized in auto insurance for farmers and later extended its services to other insurance type including, life insurance and homeowners. Besides, it also offers banking and financial services. In the recent years just like the Allstate Company, the State Farm Company has extended in all US states.

The corporation has several departments and that deals with a different insurance operation in a different US State. The state farm life insurance company writes life insurance and annuity products in all the US states apart from in New York, Wisconsin, and Massachusetts. Moreover, the state farm indemnity writes which, auto insurance in the state of New Jersey. Besides, the state Farm general insurance company insures property liability and homeowners in California. Besides, the state Farm Florida Insurance Company gives covers to homeowners and property liability in Florida.

Moreover, the state Farm Lloyds Corporation writes protections to homeowners and multiple commercial perils in Lloyds (State Farm Mutual Automobile Insurance Company). The insurance and financial industry is both small and extended. It extends from life cover policies to property policies and has significantly changed in the last five years since people want to ensure their personal properties, business properties and their lives too (Jelinek). Consequently, the performance of different insurance companies have changed widely depending on the applied techniques.

Allstate Company has focused substantially on providing covers on life and homeowners, most of the people will continue insuring their lives and housesregardless of the economic depression status. On the other hand, State Farm focuses on providing cover to autos, motorbikes, and ships. Therefore, when the economic condition is poor, many people will opt to cover their lives and homes but not cars or even ship. The two insurance companies were equally affected by the stock market crash in 2008.

However, they recovered very differently from the crash; by the nd of 2009, roughly a year after the crash Allstate Company had recovered all it had lost. Contrastingly, State Farm had not recovered its loss until late 2013. Company Financial Overview Following the fact that most of the Americans wishes to cover their lives and properties with Allstate Insurance Corporation, the company has decided to involve their customers in every aspect of their operations. Also, the employees and are engaged in making decisions on expanding their market.

By the end of the financial year 2014, Allstate Corporation had sales of 35. 0 billion with over 70000 professionals comprising of employees, agency owners plus staffs. Among its employees, 57% are women while 32% are minority groups. Besides, more than 42 percent of its managers and officers are female, and 24 percent are the minorities. This sound and stable work plan of the Company makes it be a customer staple and the most popular among the American in the US states. Moreover, although the Company invests a considerable amount of its money development and researching about the market tread, they still continue to make great achievements and expects to achieve more in future (Corporation).