Jeffrey Wade
Sears, Roebuck and Co., commonly known as Sears, is an American chain of department stores and an online retailer founded in 1892. In 1931, Sears created Allstate Insurance Company, named after its tire brand, offering auto insurance by direct mail and through the Sears catalogue. Allstate became an independent company in June 1995 when Sears spun off its remaining 80% stake in the company.
| Characteristics | Values |
|---|---|
| Founding Year | 1931 |
| Founder | Sears, Roebuck and Co. |
| Founding Idea | Selling auto insurance by direct mail |
| First Board Chairman | Lessing J. Rosenwald |
| First Vice President and Secretary | Carl L. Odell |
| First Year Profit | $93,000 |
| First Profit Year | 1933 |
| Active Policies in 1933 | 22,000 |
| Premium Volume in 1936 | $1.8 million |
| Number of Insurance Agents in 1970 | 6,500 |
| Year of Independence | 1995 |
Explore related products
What You'll Learn
Allstate Insurance was created in 1931 as part of Sears, Roebuck and Co
Allstate Insurance was created at a time when Sears was diversifying its business. Founded in 1892 as a mail-order catalogue company, Sears began opening retail locations in 1925, the first of which was in Chicago. In the 1930s, Sears began to diversify its business, creating Allstate Insurance Company in 1931 and placing Allstate representatives in its stores in 1934. Over the decades, Sears established major national brands, such as Kenmore, Craftsman, DieHard, Silvertone, Supertone, and Toughskins, and marketed widely under its private labels.
Allstate Insurance grew rapidly in its early years. Despite posting underwriting losses in its first two years, by 1933, Allstate had 22,000 active policies and posted its first profit of $93,000. In 1934, Allstate opened its first permanent sales office in a Chicago Sears store, and by 1936, the company's premium volume had reached $1.8 million. In 1941, a New York law was passed requiring auto insurance, which led to a tripling of Allstate's revenue from premiums by 1941, reaching $6.8 million from over 189,000 policies in force.
Allstate Insurance remained a part of Sears, Roebuck and Co. until it became an independent company in June 1995. In 1991, Allstate went public, and in June 1993, 19.8% of Allstate became public through a stock offering. Sears spun off the remaining 80% stake in the company in June 1995, distributing 350.5 million shares of Allstate stock to its stockholders.
Insurance: Do You Have Enough Coverage?
You may want to see also
Explore related products
Allstate Insurance was named after Sears' tire brand
Allstate Insurance was indeed named after the Sears tire brand. Sears, Roebuck and Co., commonly known as Sears, is an American chain of department stores and an online retailer founded in 1892. In 1925, Sears held a national contest to decide the name of a new brand of car tires. After 2,253,746 name submissions from 937,886 participants, “Allstate” was chosen, and the trademark was officially registered on April 19, 1927.
The idea for Allstate Insurance Company came when insurance broker Carl L. Odell proposed to his neighbour, Robert E. Wood, the idea of selling auto insurance by direct mail. The proposal was sent to the Sears board of directors, who approved it. Allstate Insurance Company, named after the Sears tire line, began operations on April 17, 1931, offering auto insurance by direct mail and through the Sears catalog. This was in line with Sears' objective to sell automobile insurance in the same manner as its other merchandise. Lessing J. Rosenwald was Allstate's first board chairman, and Odell was named vice president and secretary.
In its early years, Allstate Insurance primarily focused on auto insurance. In 1933, Allstate's Richard E. Roskam sold insurance at a booth in the Sears pavilion at the Century of Progress World's Fair in Chicago. The following year, in 1934, Allstate opened its first permanent sales office in a Chicago Sears store. By 1936, the company's premium volume had reached $1.8 million, and in 1941, Allstate's headquarters building was completed in Chicago as part of the Sears, Roebuck and Company Complex.
Over the years, Allstate expanded its insurance offerings and introduced new products. In 1954, the company added fire insurance to its portfolio, followed by homeowners and life insurance in 1957. Allstate also started selling insurance to Canadians in 1953 and established Allstate Insurance Company of Canada in 1964. In the 1960s, the Allstate brand was associated with a range of products, including tires, car batteries, fire extinguishers, and motor scooters. However, by the late 1960s, the brand focus shifted primarily to insurance, tires, and car batteries. In the 1970s, Allstate continued to diversify, entering the mortgage banking business and expanding internationally to Japan through a joint venture.
Allstate gradually gained independence from Sears, becoming partially owned by Sears in 1993 and completely independent in June 1995. Today, Allstate is a large insurance corporation with revenues of $39.8 billion in 2018, ranking 79th in the 2019 Fortune 500 list of the largest US corporations by total revenue.
How Life Insurance Can Compel Fathers to Act
You may want to see also
Explore related products
Allstate Insurance was sold through the Sears catalogue
Allstate Insurance was indeed sold through the Sears catalogue. Sears, Roebuck and Co., commonly known as Sears, founded Allstate Insurance Company in 1931. Allstate Insurance was named after Sears' tire brand, "Allstate", which was chosen through a national contest in 1925.
The idea for Allstate Insurance came from insurance broker Carl L. Odell, who proposed to his neighbour, Robert E. Wood, the idea of selling auto insurance by direct mail. Wood liked the idea and sent the proposal to the Sears board of directors, who approved it.
Allstate Insurance went into business on April 17, 1931, offering auto insurance by direct mail and through the Sears catalogue. This was in line with Sears' objective to sell automobile insurance in the same manner as its other merchandise. In 1933, Allstate's Richard E. Roskam sold insurance at a booth in the Sears pavilion at the Century of Progress World's Fair in Chicago. The following year, in 1934, Allstate opened its first permanent sales office in a Chicago Sears store.
Over the years, Allstate expanded its insurance offerings and added new products, including fire insurance in 1954 and homeowners and life insurance in 1957. Allstate also began selling insurance to Canadians in 1953 and established Allstate Insurance Company of Canada in 1964. The Allstate brand was eventually limited to insurance, tires, and car batteries by the late 1960s, and by the mid-1970s, it focused solely on insurance.
Allstate became an independent company in June 1995 when Sears spun off its remaining stake in the company. Allstate has since continued to grow and diversify its insurance business, becoming a large corporation with revenues of $39.8 billion in 2018.
USDA and FHA Loans: What's the Difference?
You may want to see also
Explore related products
Allstate Insurance became independent in 1995
Allstate Insurance was created by Sears, Roebuck and Co. in 1931. It was initially a car insurance company, selling insurance by direct mail and through the Sears catalog. The name 'Allstate' was chosen after Sears held a national contest to decide the name of a new brand of car tires in 1925.
Over the years, Allstate added new products and services, including fire insurance, homeowners insurance, and life insurance. In 1953, Allstate began selling insurance to Canadians, and in 1964, Allstate Insurance Company of Canada was incorporated. In 1991, Allstate went public, and in June 1993, 19.8% of the company was sold through a stock offering.
Finally, in June 1995, Allstate became a completely independent company when Sears spun off the remaining 80% stake in the company, distributing 350.5 million shares of Allstate stock to its stockholders. This was the largest IPO to date. After becoming independent, Allstate continued to expand and diversify its business, including purchasing other companies and expanding internationally.
Life Insurance: How Many Policies Do You Need?
You may want to see also
Explore related products
Allstate expanded to Canada in 1953
Allstate Insurance Company, a subsidiary of Sears, Roebuck and Co., expanded to Canada in 1953. Allstate Insurance Company of Canada has been delivering insurance coverage products to Canadians since then. The company has built its reputation around its "good hands" advertising campaign, which offers peace of mind in all areas of insurance. Allstate Canada focuses on consumer products and does not offer much in the way of commercial coverage. Personal lines customers can easily find coverage that meets their needs.
Allstate Canada is known for its diverse underwriting staff, which can write policies for any situation. The company relies heavily on its network of brokers to help deliver quality solutions to its customers. Allstate Canada has a number of ways for customers to save money. For example, customers can bundle their car insurance with property insurance and insure more than one vehicle with Allstate. In addition, Allstate offers a range of discounts for customers who meet certain criteria, such as having a vehicle less than three years old, equipping their vehicle with an approved anti-theft device, or being a long-time client of Allstate.
Allstate Canada offers a broad range of auto insurance products that apply to just about any kind of vehicle. The company also covers residences and temporary residences, with a variety of coverage options and discounts. In addition to auto and home insurance, Allstate Canada offers boat insurance, which covers a number of different watercraft, including sailboats, sports boats, and fishing boats, as well as accessories such as trailers and equipment.
Allstate Canada also offers specialty insurance products through partnerships with other insurance companies. For example, the company partners with PAL Insurance Brokers Canada to offer niche insurance products such as special event liability, event cancellation, and exhibitor liability. Allstate also partners with TruShield Insurance to offer commercial insurance coverage for small businesses, including commercial general liability insurance, commercial property insurance, and professional liability insurance.
AD&D Life Insurance: Scam or Legit?
You may want to see also
Frequently asked questions
Yes, Sears created Allstate Insurance in 1931. It was named after Sears' tire brand.
Allstate Insurance became independent in June 1995 when Sears spun off its remaining 80% stake in the company.
The slogan of Allstate Insurance was "You're in good hands with Allstate".
