Allstate (ALL)

Consumer Focus

“Our unique mix of innovative products continues to differentiate us from the competition,” Wilson said. In addition to Allstate® Your Choice Auto Insurance (YCA), the company’s innovative auto insurance product, Allstate offers a number of consumer-focused products to attract new customers:

·                  Allstate’s product offering for higher risk drivers, Allstate Blue^SM, was introduced in Arizona in the quarter, bringing the total number of states in which the product is available to 13.

·                  Encompass Edge^SM, a new product sold through independent agents, contributed to positive premium written growth in the brand’s standard auto line. The product was introduced in four states in the quarter, bringing the total number of states in which Encompass Edge^SM is available to 16.

·                  Allstate® Your Choice Home, the Company’s unique homeowners insurance product, is now available in 17 states.

·                  Allstate Financial is preparing to launch a new line of target date mutual funds that will add to the number of consumer-friendly retirement products available through Allstate personal financial representatives. Approximately two-thirds of Allstate’s agency force is licensed to sell mutual funds and variable annuities.

Consumer Focus

“Our consumer-focused strategy enabled us to succeed in the market by offering innovative products and services that are reinventing protection for consumers,” Wilson added.

Allstate® Your Choice Auto Insurance (YCA) continued to add customers at a rate of more than 100,000 per month in the fourth quarter, bringing the total YCA policies sold since inception to 3.2 million. Allstate® Your Choice Home, the Company’s unique homeowners insurance product, is now available in 15 states. Allstate’s product offering for higher risk drivers, Allstate Blue^SM, is now available in 12 states and early production shows encouraging results.  In addition, Allstate Green^SM, a new eco-friendly insurance option that offers consumers a convenient way to help the environment, is now available for consumers in Colorado and Ohio.

Consumer Focus

“Allstate’s strategy to attract and retain high lifetime value customers by offering innovative consumer-focused products is enabling us to succeed in the market while improving the strength of our brand,” Wilson said.

Allstate® Your Choice Auto Insurance (YCA) continued to add more than 100,000 customers per month in the third quarter, bringing the total YCA policies sold since inception to 2.8 million. With the introduction of YCA in Florida and Hawaii in the third quarter, the product is now available in 45 states and Washington D.C. representing 83% of American households. Allstate® Your Choice Home, our unique homeowners insurance product, is now available in 13 states. Our product offering for higher risk drivers, Allstate Blue^SM, is now available in 11 states and early production shows strong results.

Consumer Focus

“Our distinct product and service offerings are attracting and retaining profitable business,” said Wilson. “We added 300,000 Your Choice Auto customers in the second quarter, bringing our total to 2.4 million. 

(1) Measures used in this release that are not based on accounting principles generally accepted in the United States (“non-GAAP”) are defined and reconciled to the most directly comparable GAAP measure and operating measures are defined in the “Definitions of Non-GAAP and Operating Measures” section of this document. 

1

Revenues for Your Choice Auto reached $2 billion annually.  Overall, Allstate standard auto showed positive growth in the quarter and the renewal ratio remains at nearly 90 percent.”

Consumer Focus

“Our highly successful marketing programs continue to distinguish us from our competitors and deliver quantifiable results for our auto insurance business. Allstate brand standard auto policies in force grew 2.6 percent in the first quarter of 2007 compared to the prior year and new issued applications increased 7.3 percent. Customer loyalty also remains a top priority and is the focus of several new initiatives.