January 2010 Archives

Allstate Terminates Agents

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An Allstate store in Moncton

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"An Allstate agent in central Ohio from 1967 until last month, Simpson said he was asked to either sell his agency by Jan. 1 or accept a $130,000 termination payment. 

Allstate was unhappy, Simpson said, because the number of policies in his portfolio fell 1.5 percent, or about 30 accounts. 

The National Association of Professional Allstate Agents expects Simpson's lament to become increasingly common in coming years as more agents are let go. 

 "We believe Allstate is planning to eliminate between 3,200 and 3,300 agents by 2013," said Jim Fish, the association's executive director

 Allstate, which has 14,700 exclusive agencies and financial representatives, in 2008 wrote premiums of $26.6 billion, or $1.8 million an agency. 

That was down 2 percent from 2007, a trend Allstate blamed on declining new car sales, a weak housing market and tough competition.

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