Welp, I see Tom Wilson is still in charge at Allstate…….

Folks, it’s not that Wilson and his cronies in Northbrook are assholes that is the problem here.

Staten Island family says Allstate Insurance hasn’t paid out after Sandy, but used images of their flattened home in a commercial ~ Victoria Cavaliere New York Daily News

The problem is they’re God-damned assholes.

Efficient, well timed and executed: The power of the written word. (Alternate title: Allstate – Clueless at the top)

Here is the deal folks. The social media is getting credit for bringing down middle eastern despots in nation after nation yet here in the US old line PR guys and clueless insurance companies just don’t get it.

Richard Marsh had been challenged to shoot a puck through a tiny hole in a cardboard cut-out over the goal at the Pepsi Coliseum in Indianapolis, Indiana.

Before attempting the shot Mr Marsh decided to donate the potential winnings to St. Vincent’s Cardiovascular and the American Heart Association.

Mr Marsh then stepped up and fired his effort the length of the ice, through the bottom of the cardboard cut-out and into the net.

However, his success was later ruled to be void because he was standing in front of the designated starting line.

The money would have been donated by insurance company Allstate as part of a special “Hockey for Heart” night sponsored by St. Vincent Heart Center of Indiana, and hosted by the USHL’s Indiana Ice.

But the USHL stated that due to Mr Marsh’s starting position, the company voided the award due to him “standing in the wrong place”.

Later, the Indiana Ice owners, Paul and Cindy Skjodt, made an undisclosed donation to the charities in recognition of Mr Marsh’s accomplishment.

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This made the Huff Po which ran a story and a correction which did clarify the reason Allstate didn’t pay was the shooter was DQ’d by the USHL for being “over the line.” Continue reading “Efficient, well timed and executed: The power of the written word. (Alternate title: Allstate – Clueless at the top)”

The Wilson effect: Sure signs the market is becoming concerned about Allstate’s long term solvency

If you’re insured with Allstate or are thinking about insuring with them this post is for you as I’ve had Allstate and its incompetent CEO Tom Wilson on my mind for the past week or so.  Now that I have a few good links, allow me to share some of the indicators I look at on individual stocks when performing DD (due diligence). Speaking of DD, it is an ongoing process that never ends which is one of the reasons I think most folks are far better off in no load mutual funds (offered by low-cost producers like Vanguard).

We last visited with Allstate last Thursday after they whiffed on their Q4 earnings.  Mr Wilson has a curious business strategy for an insurance company in withdrawing Allstate from taking HO (homeowners insurance ) risks in coastal America, where roughly half the nation’s population lives.  That is not unusual as many of the insurance companies are doing like wise but unlike State Farm, which bought into the Bermudian reinsurance market to capitalize on the shortage of coverage they helped create, Allstate has pursued a different strategy of using non admitted carriers to insure the void, at so-called market rates as non admitted carriers do not have rate regulation.

The rationale for using non admitted carriers is simple.  Consumers typically bundle their HO coverage with their auto policy and insurance companies make a mint selling auto insurance.  Withdrawing from the coast has its draw backs and the loss of the auto policies with the homeowners is a real downside to the industry’s current price-fixing scheme for wind insurance. Continue reading “The Wilson effect: Sure signs the market is becoming concerned about Allstate’s long term solvency”

In other news Allstate is getting hammered today…..

If there is one thing everyone agrees upon and I mean literally from Slabber to Allstate insider is that Tom Wilson really bites as CEO. Allstate once again misses on earnings and if memory serves we’re getting up on double digits for the number of consecutive misses.  Only that fat ass hogger Fernando Aguirre at Chiquita comes close when it comes to sheer incompetence.

Don’t take my word for it just check out two different threads on the Yahoo Allstate Finance Board here and here.

Who is measuring your performance Tom?

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What a train wreck!

sop

kudos for Wilson – not yet

Regulate me, please, the opinion column written by Allstate CEO Tom Wilson, appeared in the April 15 NYT in the guise of Wilson’s on-going effort to garner support for national regulation of the insurance industry.

Calling  it his CDS mea culpa, Option ARMageddon gave Wilson “kudos” for coming clean:

My company, Allstate, serves more than 17 million American households.  While we played only a small role in unregulated insurance markets, we have a duty to help stabilize the financial system. It was, after all, an insurance product that contributed to the risk that almost brought down the global economy.

New York State’s Insurance Superintendent, Eric Dinallo, on the other hand, had no kudos to offer:

“While the credit default swap market is not regulated, insurance company use of credit default swaps is,” Mr. Dinallo said in a statement. “In New York, no insurance company can use credit default swaps except under very specific and limited ways and only with approval.”

Was Option ARMageddon spot on or was Wilson’s agenda to set up Dinallo and DOI to the advantage of his efforts to secure national regulation of the insurance industry?  Dinallo’s press release suggests Wilson may have had another agenda – one that would lead to Hank Greenberg, AIG, and, perhaps, other insurers. Continue reading “kudos for Wilson – not yet”