Certain companies outperform others and one of the key factors in this is the age of the company. In many cases, it was seen that the higher the age of a particular company, the more successful it was mainly because it has stabilized in a particular market. The case of Allstate is pretty much the same, which is currently one of the biggest insurance companies in the US.
About Allstate Corporation
If you belong to the US, you might have heard this name a lot because believe it or not, this is a multi-billion dollar company that has a high brand presence in several parts of the world. The Allstate Corporation is an American insurance company with its headquarters in Illinois. It is one of the oldest companies in the US which was founded in 1931. The firm also has operations in Canada.
How Big is Allstate Corporation
As of 2020, the Allstate Corporation is one of the biggest employers in the United States with almost 50,000 personnel under the payroll of the company. With aggressive growth in multiple states through persuasive marketing techniques, the company has emerged as a big one. The Allstate Corporation has a revenue of $44 billion in 2019 while the operating income was about $6 billion. The Allstate Corporation provides insurance services to more than 16 million households.
The net income of The Allstate Corporation was $4.8 billion for the same year while the total equity has been $25 billion. The company has made it to the Fortune 500 list of the largest companies of the United States based on the total revenue factor. In this list, Allstate got the 79th position which is yet another indicator of how big the firm is.
Allstate History
The idea for Allstate came up when the insurance broker Carl L. Odell proposed the idea of selling auto insurance by direct mail. Odell had pitched it to his neighbor who was interested and proposed the idea to the board of directors of Sears which was a company having interests in the car and car-related products such as tires.
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When did Allstate start?
In 1931, the company started its operations with Lessing J. Rosenwald as the first Chairman and Odell as the vice president and secretary of the company. The firm was in smooth operations but slow progress. In 1941, very few US drivers had auto insurance and at this time, the State Government of New York passed a law creating a financial responsibility for drivers for damage or injuries.
This was quite useful for auto insurance providers since many people started getting insurance policies. Allstate Corporation benefitted from this law. Soon, other states also passed the same law as the State of New York had done. In 1949, Allstate Headquarters was established in Chicago but was vacated right after the war as the company relocated.
Growth Period – Post-1950s
The most significant effort towards success for the company was its marketing efforts. As of 1950, the slogan “You’re in Good Hands with Allstate” was put up. There were several ad campaigns through televisions. Influencer marketing was also practiced by the firm when they used top actors of the industry including Ed Reimers.
Allstate Corporation grew with these campaigns. Thus, it added more products such as fire insurance, life insurance, and entering into other markets such as Canada. In 1967, the relocation was made from Chicago to Illinois. Business customers were also targeted now with business package policies and inland marine coverage.
During the 80s, the company decided that the agents should be placed closer to the potential customers as compared to Sears stores. The agents were then located in the neighborhood offices. As of 1991, the company established itself as a public limited company. However, it got completely independent in 1995 when Sears LTD. let go of its 80% holding in the company.
The Allstate Corporation Today
With practical efforts and ongoing campaigns, the company has seen persistent growth ever since it got independent. Dean Winters and other actors have been the brand ambassadors of the firm. The company has taken over other firms as well such as Esurance and Square Trade which have helped in reducing the overall risk being borne by the firm. The company has current plans to soon takeover National General Insurance for $4 billion.
Awards for Allstate Corporation
Like we mentioned, The Allstate Corporation has had success in the industry due to the exceptional marketing efforts by the company. Mayhem was one such campaign that got huge success for which the firm received 80 industry awards. Instead of the character named Flo which was very popular at that time, the new character named Mayhem was launched by Allstate Corporation and heavily marketed on billboard and internet banners.
Several other awards have been racked up by the firm over the past few years. Forbes recognized Allstate Corporation as America’s Best Employers in 2017 while Fortune gave three recognizing awards to the company. In 2017 and 2018, Allstate Corporation got the award for “Change the World” meaning that it is one company that is moving the world towards a positive change. In 2020, the entity was praised as the Fortune’s World’s Most Admired Companies.
There have been awards given to the company for Corporate Social Responsibility as well that have improved the firm’s brand recognition and image in the industry. Allstate Corporation was listed among The Ethisphere Institute’s World’s Most Ethical Companies for 5 consecutive years between 2015 and 2020. It also got the award for Forbes Just Companies in 2019. The Financial Services Roundtable’s Corporate Social Responsibility Leadership Award was given to the company in 2016. Allstate Corporation is considered one of the most responsible companies in America.
Several other awards have been given to the company as well for Innovation Practices as well as Inclusive Diversity. The company is also known for providing job opportunities to the working mothers and has been the 24-time award winner. It has also been given awards for multicultural women’s diversity.
About Allstate Sponsorships
You might be wondering what interesting could be related to sponsorships. There seems to be a certain obsession with Allstate for sponsoring different types of sports events. Sounds like an overstatement? The company has the naming rights to an Arena in Illinois near the headquarters of the company.
The firm has also sponsored college football in more than 67 institutes and donates a certain sum of money for every extra point kicked. There have been more than $2.9 million in donations. Allstate Sugar Bowl is a real thing that is fully sponsored by the firm and it even goes on to the national level championship games.
Allstate advertises through the different types of the coaches association, particularly with the American Football Coaches Association with the slogan of “Good Works Team”. Many local Allstate agents surprise different football players with trophies. The ability to market themselves creatively is truly a unique aspect that helps them in improved sales revenue and profitability.
Between 2005 and 2009, the NASCAR Sprint Cup Series which was a race held at the Indianapolis Motor Speedway was also sponsored by Allstate. Kasey Kahne was seen to have the advertisements promoted and attracting a huge audience to the event.
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Allstate Controversies
By now you have seen the good side of The Allstate Corporation but there are some disturbing facts as well which you should know. In 2007, CNN found out that Allstate as well as other different insurance companies were fighting for the auto insurance claims and not providing the right reimbursements to those who had their claims.
As of 2008, the American Association for Justice named Allstate as the Nation’s Worst Insurers. It was accused that the company was using the boxing gloves strategy and scaring the customers into insurance as opposed to their “good hands” slogan. Allstate Corporation answered to these allegations by saying that the claims have been baseless and have no proof or evidence to be justified in the court of law.
Probably the worst thing an insurance service provider can do is to not renew the policies of the customers in areas where there is a high chance of disaster. In 2006, it was found out that Allstate did not renew 120,000 policies which were expiring at the time in the state of Florida.
This was stopped by Governor Charlie Crist who passed a 90-day emergency order so that insurance companies renew policies without any delay but only those policies which do not fulfill the basic criteria of insurance can be denied.
Conclusion
Above we have mentioned some of the most interesting facts about Allstate Corporation. The company is doing good or bad, it is up to you to decide. What we believe is that every organization goes through different types of rough patches but that does not mean that it is totally bad. From the different types of awards that the company has received recently, it is best to let go of the previous controversies. Allstate Corporation is yet one of the best insurance services providers in the US.