What do Metlife, AXA and Allstate have in common? Way more than just insurance, it turns out.
Today, Allstate Insurance announced a major expansion of its Charlotte operations, creating 2,250 jobs and investing $22.6 million over the next three years.
Allstate’s announcement comes after a big year for insurance projects in Charlotte. Just three months ago, Paris-based global insurer AXA announced a 550-job expansion that will nearly double its local presence and make Charlotte its largest location in the U.S.
Additionally, Allstate’s expansion represents the largest boost to the city’s booming business and financial services sector since 2014, when MetLife — another major insurance provider –opened a new retail operations hub.
“We’re grateful for the support and partnership with the state and the local business community,” said Harriet Harty, Executive Vice President, Human Resources at Allstate Insurance Company. “We look forward to supporting the continued economic development in the Charlotte area as we take the operational steps needed to best serve our customers. We are deeply committed to the communities we serve and our employees across the country who are helping us build the Allstate of the future. We will continue our strong legacy of corporate citizenship as we expand our footprint in Charlotte.”
Founded in 1931, Allstate (NYSE: ALL) provides insurance services to more than 16 million households nationwide. The company’s major business is private passenger auto and homeowner’s insurance, but its product mix also includes retirement and investment products, accident and health insurance, business insurance and life insurance. It is the largest publicly-held property and casualty insurer in the U.S.
Currently, Allstate employs about 1,400 people in the Charlotte area. The company’s ability to access a skilled and educated workforce were key in their decision to expand in North Carolina.
“Our expansion [in Charlotte] broadens our access to talent. And talent deepens our skill sets and our ability to meet our customers needs, not only currently but in the future,” said Harty. “This is a win for the company, our employees, our customers and the state,” she added.
Allstate’s expansion in Mecklenburg County will be facilitated in part by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Allstate will add a variety of job functions in North Carolina, delivering a yearly payroll impact of more than $105.3 million, once all positions are filled. Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $3.9 billion.
Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $17.8 million, spread over 12 years. State payments only occur following performance verification by N.C. Commerce and N.C. Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because Allstate chose to locate in Mecklenburg County, the company’s JDIG agreement also calls for moving as much as $5.95 million into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Mecklenburg, the new tax revenue generated through JDIG grants helps communities across the state. Find out more about North Carolina’s Tier Designations.
EDPNC Business Recruitment Manager Colin Kiser worked on this project, along with our partners at the North Carolina Department of Commerce, the North Carolina General Assembly, the North Carolina Community College System, Charlotte Chamber, Mecklenburg County, City of Charlotte, UNC-Charlotte, Charlotte Works, Central Piedmont Community College, Northeastern University Charlotte, Bank of America, Charlotte City Center Partners, and the Charlotte Regional Partnership.