CHARLOTTE: Allstate Insurance Company will add 2,250 jobs over three years in North Carolina as it expands its operations in Mecklenburg County, Governor Roy Cooper announced today. Allstate already employs more than 1,400 people in the area. As part of the expansion, the company plans to invest more than $22 million in the Charlotte area.
“Charlotte’s role as a leader in the financial services sector makes our state an excellent fit for Allstate,” said Governor Cooper. “North Carolina has so much to offer growing companies, including our celebrated universities and community colleges, highly skilled workforce, competitive business climate and outstanding quality of life.”
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.
“Allstate has prospered in Charlotte and they’ve made the right decision to continue their expansion here,” said North Carolina Commerce Secretary Anthony M. Copeland. “We congratulate the company on this exciting time of growth and diversification.”
The North Carolina Department of Commerce and the Economic Development Partnership of N.C. (EDPNC) led the state’s support for the company’s expansion.
“We’re grateful for the support and partnership with the state and the local business community,” said Harriet Harty, executive vice president, Human Resources, 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.”
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. More information on the state’s economic tier designations is available here.
Partners with N.C. Commerce and the EDPNC on this project include 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.