The Allstate Corporation operates as a personal lines insurer in the United States.
The company’s business is conducted principally through Allstate Insurance Company and other subsidiaries (collectively, including The Allstate Corporation, ‘Allstate’).
Allstate’s strategy is to increase market share in personal property-liability and broaden protection offerings. The Allstate brand is widely known through the ‘You’re In Good Hands With Allstate’ slogan. The company provides affordable, simple...
The Allstate Corporation operates as a personal lines insurer in the United States.
The company’s business is conducted principally through Allstate Insurance Company and other subsidiaries (collectively, including The Allstate Corporation, ‘Allstate’).
Allstate’s strategy is to increase market share in personal property-liability and broaden protection offerings. The Allstate brand is widely known through the ‘You’re In Good Hands With Allstate’ slogan. The company provides affordable, simple and connected protection solutions.
On August 13, 2024, Allstate entered into an agreement with StanCorp Financial Group, Inc. to sell Allstate’s employer voluntary benefits business. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell the group health business. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions. The individual health business will either be retained or divested.
Strategy
The company's strategy has two components: increase personal property-liability market share and expand protection offerings by leveraging the Allstate brand, customer base, and capabilities.
Allstate Protection’s strategy is to be a low-cost digital provider that offers affordable, simple, and connected products. Transformative Growth is about creating a business model, capabilities, and culture that continually transform to better serve customers. This is done by providing affordable, simple, and connected protection through multiple distribution channels. The acquisition of National General expanded the company's independent agent relationships and Transformative Growth has improved its direct sales capabilities. The successful repositioning of distribution has increased new business in all channels.
Protection Services’ strategy is to innovate new products and services, expand distribution, and provide affordable, simple, and connected protection solutions.
Allstate Protection Plans: Expand distribution and product breadth of consumer protection plans through new and existing retailers and mobile operators across North America, Europe, Asia and Australia.
Allstate Dealer Services: Expand distribution of Allstate branded protection and insurance products through auto dealerships, business partnerships and direct to consumer.
Allstate Roadside: Modernize the roadside assistance business through technology and enhanced digital capabilities to deliver a superior customer experience.
Arity: Provide industry-leading telematics and mobility insights to insurance companies, the transportation industry and location-enabled consumer apps.
Allstate Identity Protection: Create a leading position in the identity protection and restoration market, offering full-service identity protection and expand partnership and direct to consumer distribution channels.
Segments
Allstate Protection Segment
This segment offers private passenger auto, homeowners, other personal lines, and commercial insurance through exclusive agents, independent agents, contact centers, and online under the Allstate, National General, and Answer Financial brands.
The Allstate Protection segment accounted for 92.4% of Allstate’s 2024 consolidated insurance premiums and contract charges, and 18.0% of Allstate’s December 31, 2024 PIF. This segment includes private passenger auto, homeowners, and other personal lines products offered through Allstate branded exclusive agents, independent agents, and directly to consumers.
The company has three market-facing property-liability businesses: Allstate brand, National General, and Answer Financial, with products and services that cater to different customer needs and distribution preferences.
Products and Distribution
Allstate Protection differentiates itself by offering a comprehensive range of affordable, simple, and connected protection solutions across distribution channels for specific consumer segments.
Protection Products
Insurance Products: Insurance products are primarily offered by the Allstate and National General brands. They include auto, homeowners, specialty auto (motorcycle, trailer, motor home, and off-road vehicle), other personal lines (renters, condominium, landlord, boat, umbrella, manufactured home, scheduled personal property, and valuable item protection), and commercial lines.
Answer Financial: Comparison quotes and sales of non-proprietary auto, homeowners, and other personal lines (condominium, renters, motorcycle, recreational vehicle, and boat).
Distribution
Exclusive Agency Channel: In the U.S., the company offers products through over 27,700 Allstate exclusive agents and licensed sales professionals and 600 exclusive financial specialists who offer non-proprietary life and annuity insurance and investment products. In Canada, the company offers Allstate brand products through approximately 500 employee sales agents.
Independent Agency Channel: In the U.S., the company distributes its products through approximately 55,000 independent agent locations.
Direct Channel: The company offers products through approximately 1,800 sales representatives in contact centers and online. It also offers Direct Auto products through employees in approximately 500 retail stores.
Other Products and Distribution
Allstate also sells commercial and homeowners (in high-risk geographies) insurance, roadside assistance and a range of non-proprietary life and annuity products offered by third-party providers.
Innovative Product Offerings and Features
Market-leading Solutions
Allstate brand
Affordable, Simple, Connected: Reimagined insurance experience and products, making them affordable, simple, and connected. Examples include fewer questions for customers to answer before getting a quote, easy-to-understand coverage descriptions, and customized coverage offers, and an industry-rating plan. Offered through the exclusive agency channel, on the web or direct to consumers in 31 states for auto, 28 states for renters, and 4 states for both homeowners and valuable item protection as of December 31, 2024. The new product suite includes feature options for qualified customers similar to Your Choice Auto, such as Accident Forgiveness and Auto Replacement Protection, and new features, such as more flexible transportation expense and expanded household composition options.
Allstate House and Home: Featured options include Claim RateGuard, Claim-Free Bonus, Deductible Rewards, and flexibility in options and coverages, including graduated roof coverage and pricing based on roof type and age for damage related to wind and hail events.
Bundling Benefits: Auto customers with a qualifying property policy are provided an auto renewal guarantee and a deductible waiver (when the same event, with the same covered cause of loss, damages both auto and property). Offered in 47 states and District of Columbia (‘D.C.’) as of December 31, 2024.
Auto Replacement Protection: Replaces a qualifying customer’s vehicle involved in a total loss accident with a newer vehicle with fewer miles. Offered in 48 states and D.C. as of December 31, 2024.
National General
Custom360: Endorsements and coverage amounts can be scaled up or down to create a custom, needs-based insurance solution for customers at all stages in life. It leverages Allstate analytics and rating plans adapted to the independent agency channel. Offered in various states as of December 31, 2024.
Telematics Solutions
Allstate brand
Drivewise: Telematics-based program, available in 48 states and D.C. as of December 31, 2024, that uses a mobile application or an in-vehicle device to capture driving behaviors and encourage safe driving. It provides customers with information, tools and more accurate individual pricing.
Milewise: Usage-based insurance product, available in 21 states and D.C. as of December 31, 2024, that gives customers flexibility to customize their insurance and pay based on the number of miles they drive.
National General
DynamicDrive: Mobile-based telematics application, available in 44 states as of December 31, 2024, used to capture driving behaviors and to more accurately rate customers.
Geographic Markets
The company primarily operates in the U.S. (all 50 states and D.C.) and Canada.
Protection Services Segment
This segment provides consumer product protection plans, device and mobile data collection services and analytic solutions using automotive telematics information, roadside assistance, protection and insurance products and identity protection and restoration through Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection.
The Protection Services segment accounted for 4.7% of Allstate’s 2024 consolidated total revenue and 80.0% of Allstate’s December 31, 2024 PIF. Protection Services includes Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, and Allstate Identity Protection, which offer a broad range of products and services that expand and enhance customer value propositions.
Products and Distribution
Products and Services
Allstate Protection Plans: Provides consumer protection plans and related technical support for mobile phones, consumer electronics, and major appliances, which provide customers protection from mechanical or electrical failure, and in certain cases, accidental damage. It also provides coverage for accidental damage on furniture.
Allstate Dealer Services: Offers protection and insurance products, including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel, and paint and fabric protection.
Allstate Roadside: Offers towing, jump-start, lockout, fuel delivery, and tire change services.
Arity: Provides telematics-enabled mobility insights and services created from data collected, normalized, and analyzed by the Arity platform, including automotive telematics information. The product suite includes on-demand risk scoring (Arity IQ), lead generation, digital advertising, data integration, traditional telematics, and data-as-a-service solutions.
Allstate Identity Protection: Provides identity protection and restoration, consumer cybersecurity, privacy, and family digital safety services.
Distribution Channels
Allstate Protection Plans: Retailers and mobile operators, in-store or online.
Allstate Dealer Services: Independent agents selling through auto dealerships in the U.S. in conjunction with the purchase of a new or used vehicle, through business partnerships, and direct to consumer.
Allstate Roadside: Allstate exclusive agents, direct to consumer, wholesale partners, affinity groups, and on-demand mobile application service.
Arity: Strategic partnerships to both affiliate and non-affiliate customers, and direct to companies.
Allstate Identity Protection: Workplace benefit programs, partnerships with financial institutions and direct to consumer delivered through enterprise partnerships, online, and mobile application sales.
Geographic Markets
Protection Services primarily operates in the U.S. and Canada, with Allstate Protection Plans also offering services in Europe, Asia, and Australia.
Allstate Health and Benefits Segment
Allstate Health and Benefits segment offers self-funded stop-loss and fully insured group health products to employers, and Medicare supplement, ancillary products and short-term medical insurance to individuals, sold through independent agents, owned agencies, benefits brokers and Allstate exclusive agents.
Strategy
The Allstate Health and Benefits segment accounted for 4.0% of Allstate’s 2024 consolidated total revenue and 2.0% of Allstate’s December 31, 2024 PIF. The Allstate Health and Benefits segment provides consumers with financial protection against the risk of accidents, illness, and mortality.
Allstate Health and Benefits is differentiated through its broad product portfolio, flexible enrollment solutions, strong national accounts team, and well-recognized brand.
Employer voluntary benefits provide supplemental health and life protection to employees across all company sizes, delivering substantially more value through innovative product offerings and providing exceptional customer service experiences for new and existing customers.
Group health provides self-funded stop-loss and fully insured group health products to employers, primarily targeting small employer groups. Group health is differentiated in the market through its customizable products, flexible enrollment solutions, and strong distribution team.
Individual health is a provider of short-term medical, Medicare supplement, and ancillary insurance products to individuals, as well as third-party health products. Individual health is differentiated through its broad product portfolio, automated enrollment solutions, and deep pool of agents.
On August 13, 2024, Allstate entered into a share purchase agreement with StanCorp Financial Group, Inc. to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising Allstate’s employer voluntary benefits business. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.
On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation, and The Association Benefits Solution, LLC, comprising the group health business. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions. The individual health business will either be retained or divested.
Products and Distribution Channels
Employer Voluntary Benefits: Over 3,000 independent agents, benefits brokers, and Allstate exclusive agents for employer voluntary benefits focusing on workplace benefits for employers.
Group Health: Over 4,000 independent agents for group health focusing on health plans for small employers.
Individual Health: Over 33,000 independent agents, in-house agencies, direct-to-consumer marketing, wholesaling, worksite marketing, and the internet for individual health.
Geographic Markets
The company primarily operates in the U.S. (all 50 states and D.C.) and Canada.
Other Business Segments
Run-off Property-Liability Segment
The Run-off Property-Liability segment includes results from property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s.
Strategy: Management of this segment has been assigned to a designated group of professionals with expertise in claims handling, policy coverage interpretation, exposure identification, litigation, and reinsurance collection. Settlement agreements are negotiated contracts between Allstate and third parties that generally set forth the rights and obligations of the parties, including terms of payment for claims. At the end of 2024, 65% of the gross case reserves, excluding incurred but not reported, on the run-off direct excess commercial business were attributable to settlement agreements. This group also manages other direct commercial and assumed reinsurance business in run-off and engages in reinsurance ceded and assumed commutations as required or when considered economically advantageous.
Corporate and Other Segment
The Corporate and Other segment comprises net investment income, net gains (losses) on investments, other revenue, debt service, holding company activities, and certain non-insurance operations, including expenses associated with strategic initiatives.
Regulation
The company is a participant in state-based industry pools, facilities, or associations, mandating participation by insurers offering certain coverage in their state, including the Michigan Catastrophic Claims Association (‘MCCA’), the New Jersey Property-Liability Insurance Guaranty Association, the North Carolina Reinsurance Facility, and the Florida Hurricane Catastrophe Fund. The company also participates in the Federal Government National Flood Insurance Program.
The Allstate entities that operate as a broker-dealer and registered investment advisers are subject to regulation and supervision by the Securities and Exchange Commission (‘SEC’), Financial Institution Regulatory Authority, and/or, in some cases, state securities administrators.
History
The Allstate Corporation was founded in 1931. The company was incorporated under the laws of the state of Delaware in 1992.
