Joe Lacher Allstate
July 18, 2011 by staff
Joe Lacher Allstate, Allstate Corp. (ALL), the second largest U.S. home and auto insurer, fell the most since February in the New York Stock Exchange after the Chief Executive Thomas Wilson announced the departure of Joseph Lacher, president of the main business of the company. Allstate fell 1.45, or 4.9 percent, to 28.02 and 10:02 am at the New York Stock Exchange Stock Exchange. Lacher, who oversaw residential business coverage and the car leaves the company with immediate effect, the insurer Northbrook, Illinois-based, said in a statement.
“This comes as a complete surprise and is a significant disappointment,” said Meyer Shields, Stifel Nicolausanlyst & Co., in an interview. “They’re losing someone who has been arrested in connection investors reasonably high,” said Shields, who cut his rating on Allstate to “hold” from “buy.”
Wilson last month, citing inadequate returns in the business of homeowners, where it competes with Allstate No. 1 State Farm Mutual Automobile Insurance Co. In the operation of car insurance, Allstate is trying to defend its market share Progressive and Geico Corp. Berkshire Hathaway Inc. ‘s unit, which have been adding customers through online sales. Presidents in the previous operation will report to Wilson Lacher.
“Investors interpreted this as a problem at Allstate,” said Paul Newsome, ananlyst at Sandler O’Neill & Partners LP. “Joe was one of the most visible, well people liked Allstate investors. So I left, for whatever reason, I think be viewed negatively.”
Allstate dropped 7.6 percent this year to July 15, compared with the fall of 6.1 percent in the KBW index of 24 insurance companies. The company does not comment on personnel matters, said Maryellen Thielen, a spokeswoman for Allstate.
“Overall returns have been insufficient” in the segment of the protection of homes, Wilson, said in a June 1 filing for Investor Day Company. “We believe we can fix the cost of basic homeowners around the struggle against the blockade and the rate of eligibility, underwriting focus and ability of central coverage.”
Wilson hired Don Civgin before OfficeMax Inc., as CFO in 2008, the Company recorded investment losses of life in its unity. The same year, Judith Greffin was promoted to chief investment officer. Former American International Group Inc. Vice President Matt Winter was appointed head of the unit of Allstate Life Insurance in 2009.
“Wilson is under great pressure,” said Mark Dwelle, ananlyst at RBC Capital Markets. “Investors have not been satisfied.”
Lacher joined Allstate in 2009 from Travelers Cos., where he oversaw the units representing about 45 percent of the premiums of the company.
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