Anticipating at least 50% in our area at the minimum will be let go.
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If it follows the Allstate exclusive model expect somewhere in the ballpark of -50%. If it follows the Allstate Independent model expect it to be somewhere in the ballpark of -75%. AE runs pretty lean and AIA runs even leaner for the most part. I believe AIA doesn't even have a rep in CA, and or some reps handle multiple states for AIA. Encompass premium will be vacuumed into Nat Gen as a reverse merger, but remember what they said along time ago. Nat Gen's expense structure is Nat Gens expense structure, it wont have any affect on Allstate. For this to be true, and it was said on an investor call, which means it was legally approved otherwise it would be an SEC violation, then it means that Nat Gen will not absorb very many of the Encompass folks in general. That is what it is meant to 'scale' or find cost synergies. If the Nat Gen expense structure is to not effect the Allstate side, then it is safe to assume that Nat Gen doesn't plan on taking many of the ENC people along for the ride. Either way, this is probably just the very first round of layoffs for ENC. Assuming anyone does make it through the crucible, expect a second round to merge in the AIA folks as well.
Nice
69
Encompass is dead, long live Encompass