ALLSTATE TO GET BIGGER
By Adnews Staff
The Allstate Corp. of Northbrook, Illinois has made an offer to buy Pembridge Inc. of Toronto in a deal worth $400 million(Cdn). The deal will take at least 45 days to close. Pembridge specializes in underwriting and marketing non-standard automobile insurance and provides property and casualty insurance to higher-risk businesses. Pembridge also operates Pafco Insurance Co, the company's Canadian subsidiary that writes non-standard auto insurance through about 1,800 independent brokers. In addition, Pembridge markets similar products through its U.S. subsidiaries, American Surety & Casualty Co. of Florida and Pembridge General Insurance of Illinois. In Canada, the non-standard auto market offers insurance coverage to drivers with violations or accidents on their driving records. Allstate sells auto, home, life and disability insurance. It sells non-standard insurance in the U.S. through its subsidiary, Allstate Indemnity Insurance Co., as well as through Deerbrook Insurance Co. Allstate is making the move to expand its presence in Canada by increasing its non-standard market share and adding to its broker distribution network. Pembridge president and CEO Douglas McIntyre says in a release that the company will be able to service its policy holders and independent brokers better because it will be part of large international insurance group. Allstate says its too early to say whether the two companies will continue to operate independently or if Pembridge will be folded into Allstate. Canadian advertising for Allstate is done by Leo Burnett Co. of Toronto. Pembridge handles its advertising in-house.
Separately, Allstate Canada will launch a national campaign next month focusing on its multi-car household program. Under the deal, customers will receive a discount on their auto insurance if their household insures more than one of their vehicles with Allstate. The campaign will use newspaper and radio ads, as well as direct mail. Last month, the insurance company launched a campaign focusing on its Take 2 Advantage program, in which customers receive a discount on their insurance costs if they buy home and auto insurance with Allstate. The campaign uses radio, newspaper and direct mail as well.