10 Best Insurance Stocks to Buy According to Hedge Funds

4. The Allstate Corporation (NYSE:ALL)

No. of Hedge Fund Holders: 71

The Allstate Corporation (NYSE:ALL) provides a wide range of insurance services and products, including property and casualty, health, and protection products. Its offerings include auto, home, life, and supplemental insurance. The company also provides analytics solutions, roadside assistance, and consumer protection plans.

The Allstate Corporation (NYSE:ALL) has closed the divestiture of its Employer Voluntary Benefits business. Sold to StanCorp Financial Group, Allstate received nearly $2 billion from the sale of its business unit. This sale has ended in a pre-tax book gain of almost $625 million, while the funds will improve the company’s approach to capital management. It will also support Allstate’s $1.5 billion share repurchase program, which will run through September 2026.

Wall Street analysts expect ALL to post earnings per share of $3.68 for Q1 2025. The revenue estimates are around $16.50 billion, with rate hikes supporting the revenue. Paul Newsome from Piper Sandler recently reiterated an Overweight rating on ALL, maintaining a price target of $248. Newsome expects the company to achieve positive auto policy-in-force (PIF) growth in 2025.

Diamond Hill Large Cap Concentrated Strategy stated the following regarding The Allstate Corporation (NYSE:ALL) in its Q2 2024 investor letter:

“Among our bottom Q2 contributors were Abbott Laboratories, ConocoPhillips, and The Allstate Corporation (NYSE:ALL). Allstate, one of the US’s largest auto and homeowners’ insurance providers has seen the pace of premium price increases decelerate, weighing on investor sentiment around the stock. However, the company’s underlying fundamentals are intact, margin expansion should continue through the year, and the outlook remains constructive.”