June 20, 2011
SWOT ANALYSIS: ALLSTATE INSURANCE
Allstate is one of the major insurance companies in the United States. Sears and Roebuck Company originally founded Allstate in 1931. In 1995, Allstate became totally independent of its parent company. Allstate provides insurance coverage for life, personal property, and business. Also, Allstate provides financial planning and banking for its clients. The purpose of this paper is to analyze Allstate’s SWOT (Strengths, Weaknesses, Opportunities, and Threats). Strengths
The first focus of the analysis is to examine Allstate’s strengths. It has diversified products and services (such as life insurance, retirement, investments, and banking) for their customers to choose. Also, Allstate created itself a strong position in providing insurance for personal and business properties. Allstate has a good reputation with its customers. It has an international logo, which is a pair of hands with the caption “You’re in good hands with Allstate.” Furthermore, according to its website, Allstate possess strong financial ratings from A.M. Best (A+ Superior), Standard & Poor’s (AA- Very Strong), and Moody’s Investor Service (Aa3 Excellent). (Allstate, 2011) Weakness
The second focus of the analysis is to examine Allstate’s weaknesses. Its revenue growth is close to being inactive. For example, Allstate’s revenues were $613 million less than the 2009 fiscal year. Also, its operating income for 2010 fiscal year was $1.539 billion, which was less than 2009 fiscal year’s operating income of $1.881 billion. (Allstate, 2011)
The third focus of the analysis is to examine Allstate’s opportunities. During the past decade, home ownership increased exponentially. Allstate can expand its customer base by catering to new and current homeowners. Also, it can sell products to new retirees of the “Baby Boom” generation, which could give the company...