| |
Within the insurance market,
several demographic segments offer especially high growth potential.
The personal lines insurance market mirrors this country’s
changing ethnic mix and shifting population patterns, and we’re
seizing these opportunities in a variety of ways. There’s
also continuing growth in single-person households and increasing
sophistication among consumers aged 25-34. In addition, many
consumers take fewer risks and have fewer, less severe claims.
For these high lifetime value customers, the insurable assets
we help protect – and the value of these relationships
– increase over time.
We’re well-positioned to find and serve these segments
of the market. Each year, more consumers want our financial
strength behind them. They’re drawn to our diverse line
of competitively priced insurance products. And they value their
relationships with agents and the work we do to support their
communities.
As the Baby Boom population ages, middle-income customers will
require not just protection for today, but preparation for tomorrow.
These customers see the value of diversified investment portfolios
that include retirement-oriented financial products in addition
to life and long-term care insurance. And they’re looking
to consolidate their relationships with experienced professionals.
Through our agent and non-proprietary sales networks, we’re
targeting those who are actively saving, in an effort to increase
our share of their life, savings and retirement business. Total
premiums and deposits for Allstate Financial in 2004 rose to
a record $15.9 billion, a 13.4 percent compound annual growth
rate from 1999 to 2004, a clear sign the market is responding
to our life insurance, retirement and investment products.
To protect our financial strength and yours, we must also manage
several variables that can affect our market – and our
performance. Natural catastrophes are part of our business,
and we constantly refine our business to help protect our customers
and manage our financial exposure. In Florida, for example,
we’re working closely with state officials to provide
better insurance protection against hurricanes. We hope to have
in place before the next hurricane season an improved public/private
partnership that more effectively protects consumers and investors.
We also monitor regulation, competition and claim trends state-by-state.
This analysis helps us win profitable market share by delivering
highly competitive pricing, especially to our target customers.
With this disciplined approach, policies in force for our Allstate
brand auto insurance and homeowners policies sustained a path
of growth, demonstrating steady increases over the past year.
Our aggressive, focused marketing efforts have helped convince
one million auto customers to switch to Allstate. And Allstate
brand customer retention closed 2004 at near record levels.
All these trends indicate that we’re turning market knowledge
into competitive advantage. (Continue Chairman’s Letter...)
Return
to top of page 
|
|
|
|
