10 Best Property & Casualty Insurance Stocks to Buy

3) The Allstate Corporation (NYSE:ALL)

Average Upside Potential: 16.84%

The Allstate Corporation (NYSE:ALL) offers property-liability insurance solutions. It sells private passenger automobile and homeowners insurance with the help of independent and specialized brokers, and life insurance, annuity, and group pension products via agents.

The company’s strong execution capabilities supported 2Q 2024 financial results. Its revenues went up by 12% as compared to the prior year to $15.7 billion for the quarter mainly due to higher insurance premiums and increased investment income.

For fiscal 2024, ~9 analysts raised earnings estimates over the previous 60 days for shares of The Allstate Corporation (NYSE:ALL). The company has an average earnings surprise of ~more than 40%. The improvement in its Property-Liability underwriting results led to an increase in net income, which came in at $301 million in 2Q 2024 in comparison to a net loss of $1.4 billion in the prior-year quarter. The Allstate Corporation (NYSE:ALL) focuses on modernizing its pricing, and the efforts are paying off.

On the YTD basis, the company’s shares have risen by over ~25%. Across consumer insurers, auto results continue to improve, with rate hikes supporting them to turn around a business that was lagging. The Allstate Corporation (NYSE:ALL) saw healthy improvement during 2Q 2024 in home insurance. This was partly due to narrower catastrophe losses, as they declined by $573 million from a year ago to sit at $1.6 billion. All these reasons have led to the share price appreciation. The company mentioned that it sees an opportunity to grab a share in home insurance.

The Allstate Corporation (NYSE:ALL) was included in 59 hedge fund portfolios at the end of Q1 2024, up from 51 in the previous quarter, as per Insider Monkey’s database. The Allstate Corporation (NYSE:ALL) increased its price objective from $191.00 to $205.00, giving the company an “Outperform” rating on 4^th August. Diamond Hill Capital, an investment management company, released 1Q 2024 investor letter. Here is what the fund said:

“Other top contributors included The Allstate Corporation (NYSE:ALL), Caterpillar and General Motors. Allstate, one of the US’s largest auto and homeowners’ insurance providers, is benefiting from improving profitability in its primary auto insurance line. Further, milder weather during the quarter translated into lower catastrophe losses.”