Allstate to Hire Sales Professionals - Analyst Blog
November 16 2011 - 7:00AM
Zacks
Yesterday, Allstate Corporation (ALL) announced
that the company’s insurance agency owners in Missouri and Nebraska
are planning to hire 35 and 25 licensed sales professionals,
respectively, by the end of this year.
Licensed sales professionals help the agencies by educating
customers about the available insurance policies and assisting them
in selecting the appropriate one. Thus, they play an important role
in the growth of the agencies’ business.
However, the professionals will be employed by Allstate agencies
and not the holding company itself. The agencies are independent
contractors who work with Allstate. Currently, over 250
insurance agencies are working with the company.
The additional sales professionals are expected to improve the
earnings and fundamental growth of Allstate that has faced
significant declines based on higher catastrophe losses.
In the third quarter of 2011, operating income for the
Allstate Financial segment spiked 24.1%
year over year to $134 million, mainly due to improvement in the
profitability of investment spread products along with expansion of
underwritten products sales through Allstate agencies and growing
Allstate Benefits.
Earnings Review
Allstate reported third quarter 2011 operating
earnings per share of 16 cents, higher than the Zacks Consensus
Estimate of 11 cents but significantly behind the year-ago
quarter’s earnings of 83 cents.
The Zacks
Consensus Estimate for fourth quarter earnings stands at 93 cents
per share, showing a jump of 83% from the year-ago
quarter. In the past 30
days, 6
out
of 19 firms,
witnessed
downward
revisions, while 3 revised their estimates
upward.
For 2011, earnings are estimated to be 81 cents per share,
sinking about 72% from 2010. The company competes with The
Travelers Companies (TRV), Ace Limited
(ACE) and Berkshire Hathaway Inc. (BRK.A).
Allstate carries a Zacks #3 Rank, implying a short-term Hold
rating with no clear directional pressure over the near
term.
On Tuesday, the shares of the company closed at $26.63, up
0.53%, on the New York stock exchange.
ACE LIMITED (ACE): Free Stock Analysis Report
ALLSTATE CORP (ALL): Free Stock Analysis Report
BERKSHIRE HTH-A (BRK.A): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
Zacks Investment Research
Allstate (NYSE:ALL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Allstate (NYSE:ALL)
Historical Stock Chart
From Jul 2023 to Jul 2024