Allstate CEO Expects Price Increases to Continue: Goldman Update




  • In Business
  • 2022-12-07 15:34:19Z
  • By Bloomberg
 

(Bloomberg) -- Increases in Allstate Corp.'s insurance prices are likely to continue until the company hits its target combined ratio, given the current crush of inflation, Chief Executive Officer Tom Wilson said.

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"We're not willing to say that inflation is going to level out, or even that used car prices are down," Wilson said Wednesday at the second day of an investor conference in New York hosted by Goldman Sachs Group Inc. "We may end up overshooting a little bit, don't know."

While the goal isn't to overshoot in pricing, inflation is still having an acute impact, Wilson said. "First it's used car prices, now it's parts and labor, severe accidents," he said.

Apollo CEO Sees Opportunity in Liquidity Crunch (9:58 a.m. NY)

Apollo Global Management Inc. expects to have a strong year in 2023 as volatile markets and the prospect of a recession present opportunities for the credit-focused firm, according to CEO Marc Rowan.

Macroeconomic uncertainty has created a liquidity crunch, curtailing the amount of capital available for financing, Rowan said Wednesday at the second day of an investor conference in New York hosted by Goldman Sachs Group Inc.

"We've been taking advantage of mispriced risk as a result," Rowan said, noting that Apollo finds India and the Middle East among areas attractive for investment.

Apollo, with $523 billion of assets under management as of Sept. 30, is expanding its credit offerings to take advantage of opportunities stemming from rising interest rates, geopolitical upheaval and a deep freeze in the US leveraged-loan market. The firm also is focusing on originating investment-grade debt, in which its Athene unit and other insurers can invest, providing safe yield to support their liabilities.

Lazard CEO Sees Chance to Hire Talented Bankers (9:17 a.m. NY)

As market tumult takes its toll on Wall Street, the best recruitment strategy is retention, but it's also becoming easier - and less expensive - to hire good employees, said Lazard Ltd. CEO Ken Jacobs.

"That's your most important recruitment tool, is not having to replace people who are leaving," Jacobs said at the Goldman conference. "We have a long and very successful track record of growing our own people and turning them from analysts into partners."

Jacobs's comments echo those made Tuesday by executives at boutique investment banks Moelis & Co. and Perella Weinberg Partners, who said said that weakness in Wall Street compensation will help them add high-quality employees. "If we see the right talent, we will pull the trigger and we will invest," Ken Moelis, founder and CEO of Moelis, said at the conference.

Jacobs said that after the last financial crisis, there was a migration of talented employees from European investment banks to smaller firms. But turning to those companies now for employees isn't fruitful, he said.

"There just isn't the same talent at those firms that existed before," he said. Players like Lazard are once again competing against entities such as Goldman Sachs, Morgan Stanley and JPMorgan Chase & Co., which also are known for cultivating great employees. "The challenge is just making sure you're picking up quality talent."

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