http://www.nytimes.com/reuters/business/business-allstate-ear.html
les schaffer
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April 20, 2000
Allstate Q1 Profit Falls on Storm Costs
Filed at 1:13 p.m. ET By Reuters
NEW YORK (Reuters) - Allstate Corp. (ALL.N), the U.S. No. 2 property-casualty insurer, said on Thursday that first-quarter net profit fell 46 percent, largely due to higher claims from winter storms and lower realized investment gains.
[snip]
STORMS TAKE TOLL
The insurer, which is second only to State Farm in the property casualty business, blamed a three-fold increase in storm and freeze-related claims for the drop in operating profit.
[snip]
INTERNET SHAKE-UP READY TO LAUNCH
Allstate's $18 million restructuring charge for the quarter was the first installment of a total of $100 million in charges which the insurer expects to take in 2000 as it looks to unite its agent, Internet and telephone sales operations.
Under a plan announced in November, the company is cutting 4,000, or 10 percent, of its non-agency workforce, and moving half its 12,500 exclusive agents onto a freelance contract.
The moves will save $600 million per year, to be reinvested in Internet and call center technology, the insurer said last year. The plan was on target for the first quarter, Allstate said on Thursday.
Allstate's relaunch as a multi-channel insurer -- where the customer is to get the same rates and service whether buying policies online, on the telephone or through an agent -- is set to start in Oregon at the beginning of May, an Allstate spokesman said. The company plans to roll-out its new structure in 15 states by the year-end.
A new television advertising campaign -- keeping the company's 'You're in good hands' slogan -- is set to launch in the first week of June.