Q3 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$108.97July 1, 2023
Final Price$111.41October 1, 2023
Price Change$2.44
% Change+2.24%
- Allstate is effectively positioned to grow as more states reach target levels of profitability in 2024, leveraging capabilities like transformative growth initiatives, Custom 360, and nonstandard auto offerings to capture market share growth.
- Productivity of Allstate's exclusive agent distribution system has improved, with average productivity up over 13% and top-tier agents' production up 15%, while reducing distribution costs, which will be an asset as they lean back into growth.
- Allstate is optimizing shareholder value through strategic capital allocation, including the potential sale of its Health and Benefits business, which will allow it to capture the value created and focus on core strengths, potentially increasing profitability and returns.
- Allstate is facing ongoing headwinds from medical inflation and increased attorney representation, leading to higher injury severities in auto insurance, which are expected to continue over time.
- Uncertainty in key markets like New York, New Jersey, and California may impact Allstate's growth, as they need to achieve appropriate pricing in these states or risk shrinking their operations there.
- Increased severity of storms due to more severe weather events is leading to higher catastrophe losses in homeowners insurance, resulting in underwriting losses that Allstate "prefer not to have."