This document outlines Allstate's strategy to aggressively expand its market share in Texas through fast customer acquisition, focusing on areas with low loss ratios, high retention rates, and low applications per agent. It analyzes metrics for seven Texas regions and assigns growth goals. The goals are to acquire 48,246 new customers by 2016 - achieved through regional growth targets, improved online purchasing, and referral bonuses. Cost estimates are provided for the Austin region. Three categories of regions are defined based on profitability potential. The overall goal is 5% homeowner growth across Texas.

1. DON, SKYLER, ENXI, NATE
TEXAS
TRIUMPH

2. WHY TEXAS? - LAND
268,820 square miles

3. WHY TEXAS? - POPULATION GROWTH

4. WHY TEXAS? - HOUSE DEVELOPMENT

5. INCREASE MARKET SHARE

6. WHERE WE ARE – TOTAL IIF

7. THE FOCUS - SOURCE OF GROWTH
Increased Homeowners IIF
Renewal IIFNew IIFNew IIF

8. WHERE WE ARE – NEW IIF

9. WHERE WE WILL BE - 2.1% GROWTH

10. WHERE WE HOPE TO BE
Current IIF:
1,711,279
Projected 2016:
1,748,597
Goal:
1,796,843
Difference: 48,246

11. THE OBJECTIVE
We are going to aggressively expand
Allstate’s Texas market through a fast
paced customer acquisition strategy,
focusing our efforts in areas with low
Loss Ratios, high Retention Rates, and
low Applications per Agent.

13. REGIONAL RANKINGS
Loss Ratio Retention Apps Per Agent
5yr avg. Rank 5yr avg. Rank 5yr avg. Rank
Austin 30.6 1 87.4 6 29.9 7
Fort Worth 39.1 3 89.2 4 29.6 6
Dallas 36.8 2 88.5 5 27.9 5
San Antonio 40.3 4 90.6 3 24.2 4
Amarillo 51.1 6 93.3 1 19.4 3
El Paso 45.4 5 91.8 2 19.0 2
Houston 75.9 7 82.1 7 18.7 1
Texas 43.5 89.2 25.1

14. SCORING ALGORITHM -
EXPLANATION
● A region earns points proportionate
to its score on ranking metrics
● Region is assigned goals based on
percentage of total score in Texas
.5 (100 LOSS RATIO)
.4 (RETENTION RATE 80)
.1 (30 APA)

15. REGIONAL SCORES
Loss Ratio Retention APA Score Percentage
Austin 30.02 87.52 29.33 38.065 17.49%
Dallas 36.7 88.29 27.86 35.18 16.17%
San Antonio 41.28 90.9 24.33 34.287 15.76%
Fort Worth 39.97 89.44 30.27 33.764 15.52%
El Paso 46.35 91.91 18.98 32.691 15.02%
Amarillo 52.12 93.37 19.79 30.309 13.93%
Houston 77.4 82.08 18.32 13.3 6.11%
.5 .4 .1 217.596 100.00%

16. TARGET GOALS
REGION GROWTH GOAL 2015 YE IIF 2016 GOAL GROWTH %
Austin 14968 242,168 257136 6.18%
Dallas 13833 231,858 245691 5.97%
San Antonio 13482 291,389 304871 4.63%
Fort Worth 13276 310,254 323530 4.28%
El Paso 12854 214,820 227674 5.98%
Amarillo 11918 280,019 291937 4.26%
Houston 5229 140,770 145999 3.72%
● 5% Goal = 85,564 new IIF
● Region’s Growth Goal = 85,564 x Scoring%

17. CUSTOMER SENTIMENT

18. REFERRAL BONUS

19. EFFICIENCY OF ONLINE PURCHASE
● Three Tabs + Popup
windows
● A total of 23 questions
● Two Tabs
● A total of 19 questions

20. ESTIMATED IMPACT

21. ESTIMATED COST - EX. AUSTIN

22. CATEGORY 1:
AUSTIN, DALLAS, FT WORTH
Regions with VERY LOW
loss ratio, but high APA
and average retention
Growth will be harder to
achieve, but will be more
profitable

23. CATEGORY 2:
SAN ANTONIO, AMARILLO, EL PASO,
Average Loss Ratio,
Higher than normal
Retention and Low
APA make these regions
easy targets for growth.
While they will not be
quite as profitable as
other regions, acquiring
new business and keeping
it will be easier than
Category 1 regions

24. CATEGORY 3:
HOUSTON Growth in Houston is high
risk for multiple reasons!
High Loss Ratio and Low
Retention
The only reason we
suggest growth in this
region is to maintain a
presence, especially
against other competitors.

25. CONCLUSION - GOALS
Region Growth Goals
Austin 6.22%
Dallas 5.99%
San Antonio 4.62%
Fort Worth 4.28%
El Paso 5.95%
Amarillo 4.21%
Houston 3.75%
We will reach our overall goal of 5% homeowner growth focusing on aggressive
expansion of areas with low Loss Ratios, high Retention Rates, and low
Applications per Agent.

26. Reference
• How do people choose their insurance plan?
http://www.finweb.com/insurance/how-do-people-choose-their-
home-insurance-company.html#axzz40LaxpSEJ
• Quick Facts: Resident Demorgraphic
https://nmhc.org/Content.aspx?id=4708
• How does Web page affect conversions:
http://www.webperformancetoday.com/2014/04/09/web-page-
speed-affect-conversions-infographic/
• House Developement and Population Data
https://www.google.com/publicdata/directory
• Houston Area Development
https://blog.allstate.com/buying-a-new-home/