10 Best Financial Stocks to Buy According to Billionaires

7. The Allstate Corporation (NYSE:ALL)

Number of Billionaire Investors: 19

The Allstate Corporation (NYSE:ALL) is an Illinois-based provider of auto, home, and commercial insurance across the United States and Canada, selling through agents, call centers, and online. It also offers roadside assistance, identity protection, and insurance for health, life, and disability. It is one of the best financial stocks to buy, given it holds the interest of 19 billionaire investors and 71 hedge funds in total as of Q4 2024.

On January 30, The Allstate Corporation (NYSE:ALL) disclosed that it is selling its Group Health business to Nationwide for $1.25 billion in cash, pending regulatory approval. In the first nine months of 2024, the business brought in $608 million in revenue and $69 million in profit. The sale is part of Allstate’s plan to focus on its core strengths, following a separate $2 billion deal to sell its Employer Voluntary Benefits division. The company is still deciding whether to keep or sell its Individual Health business. The sale will boost capital by $0.9 billion and result in a $450 million gain. The deal is expected to close in 2025.

The Allstate Corporation (NYSE:ALL) raised its quarterly dividend by 8.7% to $1.00 per share on February 26. The dividend is payable on April 1, 2025, to shareholders on record as of March 10. The company also approved a $1.5 billion share buyback program running through September 2026.

On February 5, The Allstate Corporation (NYSE:ALL) announced that its Q4 revenue rose 11% to $16.5 billion, and its net income grew 30% to $1.9 billion. Strong performance in auto, homeowners insurance, and protection services drove an adjusted net income of $4.9 billion for the year. Investment income rose 25% to $3.1 billion in 2024, while homeowners insurance earned $1.3 billion despite $3.7 billion in catastrophe losses. Allstate minimized wildfire losses through reinsurance and reduced market exposure. The company expanded Property-Liability, grew Protection Plans revenue to nearly $2 billion for the year, and increased policies by 60% since 2019. It sold two Health and Benefits businesses for $3.25 billion and expects auto insurance growth in 2025.