Chicago: Up to 700 Allstate job cuts

[UpInArms]

http://www.chicagotribune.com/business/chi-0601260094jan26,1,1705919.story?coll=chi-business-hed&ctrack=1&cset=true

Allstate Corp., which last fall posted a record quarterly loss in the wake of Hurricanes Katrina and Rita, plans to cut 600 to 700 jobs at its Northbrook headquarters through a voluntary buyout program.

Allstate, the nation's second-biggest auto and home insurer after Bloomington-based State Farm Insurance Cos., hinted Jan. 10 that job cuts could be in the offing as a way to cut expenses. That day it announced that it had purchased billions of dollars in reinsurance to help cover auto and personal property claims nationwide arising from future hurricanes, earthquakes and other disasters.

The reinsurance, which is basically insurance for insurers, will reduce the volatility of Allstate's future earnings but will cost about $600 million a year--triple what it currently pays.

<snip>

In October, the insurer was stung by a third-quarter loss of $1.55 billion, its largest quarterly hit as a publicly traded firm, because of hurricane costs of $3.06 billion.

The company didn't have reinsurance in Louisiana or Mississippi, states hit hard by Katrina.

...more...

[ellie]

1. No way!

My brother works for Allstate in Chicago. I wonder if he will be affected?

[Skittles]

2. mine does too - small world, ellie

I'm worried for him