Homeowner’s Insurance Rates Skyrocketing: 10 Best Stocks To Buy

3. The Allstate Corporation (NYSE:ALL)

Number of Hedge Fund Investors  in Q1 2024: 59

The Allstate Corporation (NYSE:ALL) is one of the biggest homeowners insurance companies in America. This means that it faces a substantial exposure to any climate related catastrophes which could force The Allstate Corporation (NYSE:ALL) to not only cover substantial claims but also reduce its market by not offering homeowners insurance in areas seeing greater weather related disruptions. At the same time, the shifting climate patterns also introduce a ‘climate driven element’ to its share price, with moderate weather expectations helping the shares. The Allstate Corporation (NYSE:ALL)’s shares are among the top performers among mega US insurers this year as they have gained 23% year to date. Several factors have played into this, including the mild weather and The Allstate Corporation (NYSE:ALL)’s multi year strategy that has seen it focus aggressively on customer acquisition. This provides it an advantage in a market where insurance premiums are rising, and conversely, low customer growth could negatively affect the share price. The Allstate Corporation (NYSE:ALL) also benefited from premium increases during its Q2, with premiums jumping to $15.4 billion to mark a 12% annual growth.

Commenting on its customer acquisition efforts, here’s what The Allstate Corporation (NYSE:ALL)’s management had to say during the Q1 2024 earnings call:

“The components of transformative growth are being implemented to create sustainable growth. An improved competitive position will result from further expense reductions. Expanded customer access comes from increased Allstate agent productivity enhanced direct distribution and the expansion of custom 360 to more independent agents. A new Allstate brand, affordable, simple and connected auto insurance product is available in nine states on the direct sales side. Online quote completion time has been reduced by 40% to less than three minutes within the new technology ecosystem. This platform will be expanded to the Allstate agent channel this year into more states and homeowners over the next several years. With these growth levers, Allstate is positioned to generate sustainable, profitable growth.”