Allstate Management Monthly

Volume II, Issue VI


Greetings!

 

Welcome to PPCLOAN's October 2011 edition of Allstate Management Monthly.  We thank you for the continued referrals and are pleased to have had the opportunity to provide your hires with nationwide agency financing options!  In this month's edition, we will explore the importance of agents avoiding TPP, provide a few recent "Deal Highlights," and give insight to business practices through our "Quote of the Month" and "Did you Know" segments.  Please feel free to email or call us with any questions or comments as we welcome feedback ([email protected]).  Also, be sure to check out our 3rd Quarter Value Index results which were recently published on our website.

Avoiding
TPP
Quote of the Month
Q&A
Did You
Know?
Deal Highlights
Deal
Highlights
Meet the Staff
Meet the
Staff
Resources
Resources

Archives
Archives

Loan Program
Loan
Program

 TPPAvoiding TPP


In an effort to maintain and encourage a robust lending environment for Allstate agents, we would like to remind Allstate managers to ask their agent to contact PPCLOAN as soon as they are aware of a possible sale/termination.  Doing so will provide us the opportunity to work with the seller to find a qualified buyer and secure the greatest amount of financing for their agency.  This will help the agent avoid selling their agency back to Allstate for the termination payment.
QuoteQuote of the Month

We have included a quote that highlights a famous and inspiring saying from a notable business figure, and a brief commentary on how this can be applied to the world of Allstate.

"Whenever an individual or a business decides that success has been attained,
progress stops." 
-Thomas John Watson, Jr.

Thomas John Watson, Jr. (January 14, 1914- December 31, 1993) was an American businessman, political figure, and philanthropist.  He was the 2nd president of IBM (1952-1971), the 11th national president of the Boy Scouts of America (1964-1968), and the 16th United States Ambassador to the Soviet Union (1979-1981).
 
It is important that every Allstate agent have goals to strive for throughout their career.  They should forever have a standard of excellence set before them that they are continually working toward.  As we have seen in our analysis of deals, some agents feel they have gone as far as they need to and become complacent which is not good for the agent or Allstate.  It is detrimental to the agent because when the time comes, they are unable to sell their agency for the amount they would have been able to demand had they continued to strive toward excellence.  It is detrimental for Allstate because their customers are not being property cared for and new business is not being sought.
 
All people and businesses need to have an example of excellence and success in their mind and continue to focus on it, or they will fall into complacency and growth will cease.  
KnowDid You Know?

Most analysts expect the demand for insurance to rise as risks become more complex and abundant in the economy.  The growth in the industry, according to the Bureau of Labor Statistics is expected to be within 20 to 40 percent over the next fifteen years.  There is also an expanding set of employee benefits including child care, employee savings accounts, payroll deduction property and casualty that will expand opportunities in the insurance industry.
HighlightsDeal Highlights

Outside Buyer in GA- Purchased and merged two Allstate books of business for a combined total of $3.5M annual EP for a multiple of 2 times.  PPCLOAN was able to provide financing for 100% of the purchase price.

Outside Buyer in AL- PPCLOAN approved funding for 95% of the combined purchase price for a merger opportunity of two Allstate books of business totaling $3M annual EP.

Outside Buyer in TX- Purchased a $4.5M annual EP agency for a multiple of 2.4 times.  PPCLOAN was able to provide $885,000 toward the purchase price with the remaining balance being met by a subordinate seller note.

Outside Buyer in VA- Purchased and merged two Allstate books of business for a combined total of $2.6M annual EP for a multiple of 2.3 times.  PPCLOAN provided funding for 70% of the purchase price with the remaining balance met by the borrower's personal capital.
ResourcesR
esources


Allstate Agency Value Index- 3rd Quarter 2011 data now available. If you're wondering what your Allstate agency is worth, our data, based on requests for financing through PPCLOAN, will give you a good idea.  Register to view current data and receive quarterly email updates.

AllstateForSale.com
- Direct your agents to this free online listing of agencies if they are looking to buy, or just get an idea of what agencies in their area are selling for.

Knowledge Center
- Our highly interactive Knowledge Center provides presentations, informative articles, agency value index and financial tools.