The Allstate Corp. (ALL) said on Tuesday that it will further advance its recruiting by adding 40 more Washington state agency owners for the third straight year in 2010. In 2009, the company recruited 21 new agents in Washington.
Allstate is taking these initiatives to grab the opportunity in the current recovering economy to attract mid-level managers. It intends to use these managers to represent Allstate in Washington by owning and operating their own business.
The company is primarily focusing on Washington professionals who are affected by the recession and feel unfulfilled in their careers. However, some potential agency owners are not sure about whether this is a right time to invest money.
Allstate’s recent recruitment in Washington will be segmented in areas including Puget Sound, Eastern Washington, Olympia and Vancouver.
The agency expansion plan of Allstate is part of its strategy to revitalize its distribution muscle by increasing market presence.
Based in Northbrook, Illinois, Allstate provides insurance products to approximately 17 million households through more than 14,000 exclusive agencies and finance specialists in the U.S. and Canada .
Allstate’s first-quarter operating earnings of 69 cents per share came in substantially short of the Zacks Consensus Estimate of 79 cents. This is in contrast to the operating earnings of 84 cents in the year-ago quarter.
Results for the quarter deteriorated primarily due to lower revenues as a result of a significant decline in investment income. However, decreased expenses, prudent capital management and strong liquidity were impressive during the reported quarter.
We anticipate continued benefits from Allstate’s diversification, pricing discipline and proactive approach to increase business by appointing more agents, but the ongoing global crisis and catastrophes will continue to impact the results in the upcoming quarters.
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