Allstate Announces Management Changes
By Mark E. Ruquet
NU Online News Service, Sept. 12, 3:05 p.m. EST--Northbrook, Ill.-based insurer Allstate, Corp., announced today three management changes affecting its property-casualty and financial services business.
In a statement, Edward M. Liddy, the company's chairman, president and chief executive officer, announced that Thomas J. Wilson, 44, will be named president of Allstate Protection, effective Oct. 1. He will replace Richard I. Cohen, who is retiring.
Casey J. Sylla will become chairman and president of Allstate Financial, replacing Mr. Wilson.
The company also announced that Samuel H. Pilch, currently group vice president and controller, will replace Mr. Sylla as acting chief financial officer.
Catherine S. Brune, currently a vice president in Allstate's Technology Shared Services, was named senior vice president and chief technology officer. She will replace Frank M. Pollard who is retiring.
Mr. Wilson joined Allstate in 1995 as chief financial officer. He had been vice president of strategy and analysis for Sears, Roebuck and Co. He was named president of Allstate Financial in 1999.
The company said Allstate Protection would combine the existing operations of Allstate Property and Casualty and the Ivantage Group to provide property-casualty products through Allstate captive and independent agencies.
"The changes we have announced today are the next step in the evolution of our business strategy, as we become a broader-based financial services company," said Mr. Liddy. "We are confident that the successful financial performance we have demonstrated so far this year will be enhanced over the long term by these moves as we continue to focus and refine the company's business and organizational models."
The business changes instituted by the company over the past three years have resulted in a battle with a segment of its agency force.
A group of Allstate agents have been fighting with the carrier over changes the company made in its direct agent relationship three years ago. The company's new direction turned its direct agent force into contract agents and expanded their books to include financial service products.
The move created a backlash amongst some of the agents, with accusations of age discrimination.
Earlier this year, acting on a complaint filed by 300 current and former agents, the Equal Employment Opportunity Commission filed suit in Philadelphia U.S. District Court alleging age discrimination against the firm's agents (NU Hot News, Jan 2).
Another agent group, the United Exclusive Allstate Agents, has asked the National Labor Relations Board to hold hearings on allowing the captive agents to Unionize. The group said it has collected 4,000 signatures to proceed with a vote (NU, Aug. 19, 2002, page 31).
Allstate said it has approximately 12,500 captive agents.
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