'Cliff' Deadline Was Two Months Ago: Allstate CEO
Neither Democrats nor Republicans are creating a win-win for the other in the "fiscal cliff" negotiations and the deadline for reaching a deal was months ago, Allstate CEO Thomas Wilson told CNBC's "Closing Bell" on Tuesday.
The insurance executive said that both sides have agreed on the three buckets to prevent the automatic spending cuts and tax increase that go into effect at the end of the year — revenues, entitlements and spending reductions.
"The bad news is we haven't agreed on how much into each bucket," Wilson said. "And I don't think they're trying to create a win-win for each other. In most good negotiations, you try to help the other person come out with a win and I don't see that there."
Wilson noted that when it comes to spending cuts the Republicans want twice what the Democrats are looking for while Democrats want twice the increase in tax revenues Republicans want.
He told CNBC that he's concerned about the lack of progress in reaching a deal. "The deadline was two months ago," he said as businesses have already done their plans and budgets and are looking ahead to late 2013 and 2014.
(Read More: Scenes From Hurricane Sandy.)
The property and casualty insurer has also cut its exposure to municipal debt in half to about $13 billion. "In many of these states we thought they didn't have enough money, weren't generating tax revenues, governance was terrible and the management didn't seem like they wanted to pay anyone back," he said.
Hurricane Sandy should also lead to about $1.75 billion in insured losses, or about a quarter's worth of earnings, Wilson said.
