Allstate pulls out of state economic incentive agreement

Insurance giant pinpoints incompatibility of the program

Allstate pulls out of state economic incentive agreement

Insurance News

By Mika Pangilinan

Allstate has received approval to withdraw from a state economic incentive agreement as it embraces an employee-choice workplace model.

The insurance giant was expected to generate 2,250 jobs in its Charlotte campus as part of North Carolina’s Job Development Investment Grant (JDIG) program.

It would have received up to $17.8 million in incentives under the program, the Winston-Salem Journal reported.

In a letter sent to the state Economic Investment Committee, Allstate said it would no longer be able to comply with its previous commitment due to a new workplace model that is “incompatible” with the grant program’s rules.

With only a couple hundred employees opting to work in-person at the Charlotte campus, the insurer explained that the “vast majority” of its workforce is “ineligible to be counted as project site or [grant] remote employees.”

Allstate added that its decision to adopt an employee-choice work environment is “the best way forward for the company.”

North Carolina has not paid Allstate from the initial agreement, but local governments have issued cash grants amounting to $1.4 million, according to The News & Observer.

Despite withdrawing from the program, Allstate reiterated its belief in North Carolina as a “strategic market to attract top talent.”

“In fact, we believe that the new workplace policy will ultimately open up more employment opportunities throughout the state, enabling North Carolina residents previously unable to work for our company due to circumstances or geographical constraints to now be a part of our team,” the insurer said.

State records indicate that Allstate has spent over $30 million in capital investments earmarked for enhancing its Charlotte facilities.

Last week, the company reported pre-tax catastrophe losses totaling $2.70 billion for the second quarter of 2023.

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