In a historic move, the Allstate Corporation decided to avoid big banks and instead hire diverse companies for their recent bond sale. This is one of the largest corporate deals to ever be fully managed by diverse firms and is the first deal of this size led entirely by banks owned by minorities, women, and veterans.
History in the Making
For the bond sale, Allstate hired Loop Capital Markets, Academy Securities, Samuel A. Ramirez & Co., Siebert Williams Shank & Co., AmeriVet Securities, Cabrera Capital Markets, C.L. King & Associates, Penserra Securities, and R. Seelaus & Co. Each of these companies will be assigned a share of the $1.2 billion debt, which will help Allstate cover the $4 billion cost of acquiring National General Holdings Corp. in early 2021.
A More Diverse Future
“We always knew they could pull it off and they did,” Allstate CEO told Tom Wilson in an interview with Bloomberg. “What we’re hoping is that this shows other people that it can be done.”
Along with interrupting the insurance industry’s ties to big banks, Allstate also pledged to double the number of diverse firms in the company’s $92 billion investment portfolio in the next year, alone. Diversity is a key component of Allstate’s culture. As one of their five core values, “Inclusive diversity is fundamental to our success and guides the way we approach our work as well as the world around us,” according to the Allstate website.
The Allstate Corporation
Though many know Allstate only for its casualty insurance lines, covering automobile and home-related accidents, the company also offers life insurance, renters’ insurance, commercial insurance, and financial products.
Allstate started in 1931 as an auto insurance service offered by Sears, Roebuck & Co. through direct mail and Sears catalogs. In 1954, the firm expanded to include fire insurance, and in 1957, it expanded again to add homeowners’ and life insurance lines. Allstate brands, including Encompass Insurance, Esurance Insurance Services, and Answer Financial, are mainly sold through captive agencies where the agents only sell Allstate products. Currently, there are over 12,000 Allstate agencies across North America.
Empower Brokerage does not currently partner with the Allstate Corporation or any of its subsidiaries as of November 2020.
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