 
17,000,000
Estimated U.S. private
passenger auto drivers protected by Allstate
brand insurance. |
1 of 6
Allstate has a relationship with about one of every six American
households. |
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As a long-term investment,
Allstate outperforms the competition.
From our June 3, 1993 initial public offering through December
31, 2003, $1,000 invested in the Standard & Poor’s
500 and Standard & Poor’s Property & Casualty
indices increased in value by $911 and $710, respectively. During
that time, the same investment in Allstate exceeded those values
and increased by $1,582.
Different
from the competition
Conventional wisdom often implies that insurance companies cannot
consistently increase revenues and profits at the same time.
In a slow growth, competitive business, it has to be one or
the other. Starting several years ago, Allstate took a different
approach. Two decisions were key:
- Allstate sharpened its pricing and underwriting skills
to attract higher lifetime value households because these
customers are more loyal and more likely to buy additional
products. This improved our opportunity to generate both
revenue and income.
- The company expanded in the faster-growing financial
services market, adding a variety of retirement and savings
products. The move met a real need, especially among middle-market
customers, while balancing traditional strengths in the
slower-but-steady personal lines insurance market.
Difference pays
dividends
By rewriting the rules, your company is applying a rare
combination: best-in-class pricing and underwriting; a broad
portfolio of protection and retirement products; and access
through almost every available channel—exclusive agents,
exclusive financial specialists, independent agents, non-proprietary
channels, 1-800-Allstate and www.allstate.com. And execution
has been outstanding. The result: Not growth or profit, but
growth and profit. Last year was a good example. Revenues rose
8.7 percent in 2003. Net income per diluted share increased
139.4 percent. And return on equity increased to 14.2 percent
in 2003 from 6.5 percent in 2002.
A different
opportunity
We recognize past performance is no guarantee of future
success so we’re not resting on our laurels. Having positioned
the company for continued profitable growth, Allstate intends
to take full advantage of its experience and its unique opportunities.
The rest of this report details how Allstate is reaching more
Americans, managing its capital more effectively and leading
more decisively to deliver strong, sustained returns on your
investment. |
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