The Allstate Corporation, together with its subsidiaries, engages in property-liability insurance and life insurance business in the United States and Canada. The company's Allstate Protection segment sells private passenger auto, homeowners, and other property-liability insurance products under the Allstate, Esurance, and Encompass brand names. It also offers specialty auto products including motorcycle, trailer, motor home, and off-road vehicle insurance policies; other personal lines products including renter, condominium, landlord, boat, umbrella, and manufactured home insurance policies; commercial lines products for small business owners; roadside assistance products; service contracts; and other products sold in conjunction with auto lending and vehicle sales transactions. This segment sells its products through agencies, as well as directly through contact centers and Internet. The company's Allstate Financial segment provides term, whole, interest-sensitive, and variable life insurance; and workplace life, and voluntary accident and health insurance; deferred and immediate fixed annuities; and retirement and investment products, including mutual funds, fixed and variable annuities, disability insurance, and long-term care insurance. This segment markets its products through its agencies and financial specialists, and workplace enrolling independent agents. The company has a strategic relationship with CIT Bank, N.A. to provide revolving- and term-loan commitments to middle-market companies across various industries and business cycles. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois.
Business Analysis of Allstate
The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Allstate compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Allstate to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Allstate with an interactive chart.
- Revenue Growth: Allstate reported a revenue growth of 2.5% year-on-year during 2016. Property & Casualty Insurance Industry grew at 6.6% in the same period
- COGS share of Revenues: As a percentage of revenue, Allstate spent 67.9% of its total revenues on COGS. Property & Casualty Insurance industry average (COGS share of revenue) in the same period was 65.6%
- R&D share of Revenues: Allstate R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: Allstate SG&A share of Revenues details are not available because either company does not share the data or we do not have it
- Inventory share of Revenues: Allstate Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: Allstate Accounts Payable share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Receivable share of Revenues: As a percentage of revenue, Allstate invested 39.3% of its total revenues on Accounts Receivable (A/R). Property & Casualty Insurance industry average Accounts Receivable investment in the same period was 33.0%
- PP&E share of Revenues: As a percentage of revenue, Allstate invested 2.9% of its total revenues on Property, Plants, and Equipments (PP&E). Property & Casualty Insurance industry average PPE investment in the same period was 30.9%
- Intangibles share of Revenues: As a percentage of revenue, Allstate invested 3.3% of its total revenues on Intangibles. Property & Casualty Insurance industry average Intangibles investment in the same period was 29.7%
- Net Margins: Allstate Net Margins in the year 2016 were 5.1%. Property & Casualty Insurance industry average Net Margins in the same period were 8.2%
Sector and Industry Association of Allstate
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Allstate is associated with Financials Sector Group, Insurance Sector, and Property & Casualty Insurance Industry.
Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:
- Life Insurance industry includes companies engaged principally in life insurance.
- Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
- Surety & Title Insurance industry includes companies providing title & surety insurance.
- Insurance Brokerage industry includes insurance brokers and agencies.
- Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.
Industry Ranking of Allstate
With $36.5 billion revenues, Allstate ranked number 3 of all the companies in the US Property & Casualty Insurance industry. There were a total of 66 public companies in the US Property & Casualty Insurance industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Property & Casualty Insurance industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.