The auto segment saw a 0.9 percent decrease in second-quarter premiums written.

Without catastrophes, Allstate says gains within its underlying business improved. The underlying combined ratio was 87.5 (excluding catastrophe losses and prior-year reserve re-estimates), compared to 88.1 last year during the same time.

Addressing reports of a decline morale among agents, President and Chief Executive Officer Thomas J. Wilson says during a conference call that last week he met with more than a dozen senior vice presidents who work the agency field as well as 1,000 of the company's top agent performers and they are "highly supportive of our strategy," and are focused on what he termed the Personal Touch loyalist segment.

Allstate continues steps to increase the size of its agencies and align its compensation system with individual performance. Allstate says its variable compensation to agents will be increased from 10 percent to 25 percent commission, based on improvements in the agency’s business, which will mean more cross-selling and building the scale of the firm. However, compensation on the sale of policies will be dropped from 10 percent to 8 percent on new and renewal business.

The company has loaned money to agency owners to help mergers along, Wilson says.

Wilson admits this is a “hard thing to do,” particularly as the insurer works to fix its homeowners’ business—getting smaller in some areas and raising prices—in order to restore profitability.

Nevertheless, Wilson says, “We’re on our way to do this together.” The company and agency force are align, and are “locked arm-in-arm to go forward,” he continues.

Wilson says many agents are excited about the acquisition of Esurance, on track to close later this year.

“This is about doing what the customer wants,” Wilson says. “Everybody gets it.”

The National Association of Professional Allstate Agents Inc. (NAPAA) says it is asking members to vote on a proposal for the association to affiliate with the Office and Professional Employees International Union (OPEIU) as a guild in order to defend agents’ interest, which NAPAA says are being taken advantage of by Allstate.