A specific insurance company Research Paper Example | Topics and Well Written Essays - 750 words

A specific insurance company - Research Paper Example For the year 2013 the company’s products/operations were divided as followed: In 2012 the company reported an additional 2% increase in revenues mainly due to increased sales of property/casualty premiums and higher return on investments. Although the company has reported improved revenue streams during the past few years, their growth has been mainly fueled by expected organic growth. The company growth strategy has been geared towards increasing insurance premiums sales by enhancing their independent agent network, improving sales support and organization and improving their online sales platform. Allstate has also been working to lean down operations through the sale of less profitable segments such as the sale of the Lincoln Benefit Life unit to Resolution Life in 2014 for $600 million (Hoovers). The purchase of their subsidiary Esurance in 2011 helped solidify Allstates online presence and improve their corporate image as an innovator. Allstates management has been working towards improving their profitability through careful risk management, maintaining their current levels of profitability in the auto segment as well as increasing returns in their homeowners insurance and annuity business segments. It is interesting that the majority of the insurance advertisements in cable TV, as well as online popular TV websites such as Hulu are about Esurance and Allstates brands. Allstates main rival is State Farm, a giant privately held company with currently the largest market share in the U.S. insurance market. State Farm is the top provider of casualty, property, life, health as well as auto insurance. The other main competitors for Allstate are Progressive (PGR) with a $19.86 billion in market capitalization and Farmers Group (Yahoo). To better gauge Allstate’s financial performance I will analyze some of the companys key financial ratios and how the compare with industry averages. From the