Explain the situation and What are the main points that you feel should be analyzed in the situation.

Situation in 2013 Wilson identified 5 priorities for 2013: 1. Growing net auto premiums by 2.5% with growth from all four brands 2. Maintaining auto insurance margins at industry leading levels 3. Raising returns in the homeowners and annuity businesses 4. Proactively managing investments 5. Reducing cost structure 7 715426 Allstate Corporation, 2007-2013 In the first quarter of 2013, the Allstate brand delivered an 8.3% underwriting margin and policies-in-force were 1.9% down. Encompass made underwriting losses of 2.1% and grew 6.1% yearon year. Esurance made an underwriting loss of 16.7% on premiums earned while policies-in-force grew 36% year-on-year. Even though the stock price had increased 40% over twelve months, on May 3, 2013, Goldman Sachs was confident enough of further gains to raise Allstate stock from a Buy rating to a Conviction Buy. On May 10, Deutsche Bank argued that Allstate was a bargain, noting, "Allstate has the highest ROE, the strongest current period earnings, the most projected earnings growth, the most aggressive capital return plan, the most transparent business model, the best exposure to the homeowners' insurance price surge [and] the most to gain from falling reinsurance prices." The stock price rallied, only to fall back 10% from May highs when Allstate announced higher catastrophe losses in April and May. It remained to be seen whether the current positive view of Allstate's performance would be sustained