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 itsproperty-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 isretiring.

Casey J. Sylla will become chairman and president of AllstateFinancial, replacing Mr. Wilson.

The company also announced that Samuel H. Pilch, currently groupvice president and controller, will replace Mr. Sylla as actingchief financial officer.

Catherine S. Brune, currently a vice president in Allstate'sTechnology Shared Services, was named senior vice president andchief technology officer. She will replace Frank M. Pollard who isretiring.

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 in1999.

The company said Allstate Protection would combine the existingoperations of Allstate Property and Casualty and the Ivantage Groupto provide property-casualty products through Allstate captive andindependent agencies.

"The changes we have announced today are the next step in theevolution of our business strategy, as we become a broader-basedfinancial services company," said Mr. Liddy. "We are confident thatthe successful financial performance we have demonstrated so farthis year will be enhanced over the long term by these moves as wecontinue to focus and refine the company's business andorganizational models."

The business changes instituted by the company over the pastthree years have resulted in a battle with a segment of its agencyforce.

A group of Allstate agents have been fighting with the carrierover changes the company made in its direct agent relationshipthree years ago. The company's new direction turned its directagent force into contract agents and expanded their books toinclude financial service products.

The move created a backlash amongst some of the agents, withaccusations of age discrimination.

Earlier this year, acting on a complaint filed by 300 currentand former agents, the Equal Employment Opportunity Commissionfiled suit in Philadelphia U.S. District Court alleging agediscrimination against the firm's agents (NU Hot News, Jan2).

Another agent group, the United Exclusive Allstate Agents, hasasked the National Labor Relations Board to hold hearings onallowing the captive agents to Unionize. The group said it hascollected 4,000 signatures to proceed with a vote (NU, Aug. 19,2002, page 31).

Allstate said it has approximately 12,500 captive agents.