Question · Q3 2025
Bob Cheong Kwong from Morgan Stanley followed up on Allstate's fixed income portfolio duration, asking if there's a need to further increase duration as the Fed fund rate potentially declines, or if the current five-year duration is appropriate.
Answer
CEO Tom Wilson emphasized that there's never a 'need' for specific portfolio adjustments, but rather 'opportunity' to scope risk across the company. CIO John Dugenske explained that Allstate considers a mosaic of factors, not just market posture, to achieve the best overall economic return for shareholders, avoiding chasing yield.