Allstate Corp

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• DJ Auto Insurance Rates May Be Peaking, Though Not for Everyone -- WSJ, from 2 minutes ago by Dow Jones

  2 minutes ago by Dow Jones
  Companies Mentioned: PGR, ALL
  By Telis Demos Auto insurers may finally have the rates theyve been looking for in many states. But business won't necessarily get easier. Allstate on Thursday told analysts that in auto insurance, as rate adequacy has been achieved in more states it has unwound restrictive underwriting policies in states representing over 75% of Allstate brand auto premiums. It reported in its Wednesday earnings release that Allstate brand auto policies in force declined 5.2% in the first quarter compared to the prior year, slower than the 6.2% fall in 2023. For Allstates overall auto business, the combined ratiowhich measures payouts and claims expenses as a percentage of premiums was 96% in the first quarter. That is a sharp improvement from 104% a year earlier. Insurers aim for lower combined ratios, reflecting higher underwriting profitability. Allstate said it remains challenged in auto insurance in three key states: California, New York and New Jersey. The insurer has reopened California for new business after recent rate approvals, executives told analysts on Thursday. But in New York and New Jersey, even with the rate approvals that we got late last year, we still don't feel like we're at the appropriate rate level to want to grow in those two states, Mario Rizzo, Allstates president of property-liability, told analysts on Thursday. This fits with some broader indicators of slowing or plateauing rate increases after a wave of sharp hikes. U.S. personal motor-vehicle insurers have asked state regulators to allow higher rates to help stem their underwriting losses, which economists at the Swiss Re Institute estimate to have been over $50 billion cumulatively in 2022 and 2023. "We anticipate that the rate increases will decelerate soon, driven mainly by disinflation, improved underwriting performance, and increased competition, Swiss Re Institute economists wrote in a recent note. In our view, increases in personal motor premium rates are near their peak, and we expect to see a flattening of month-on-month changes over the coming months. Auto insurers are also aiming to compete more for customers going forward, particularly as high rates have led people to shop around more. Allstate said that it has increased its advertising investment in a growing number of states, which rivals have also indicated. Now the challenge for the industry will be ensuring that efforts to return to growth dont eat too much into the newfound profitability of higher rates. Intensifying competition contributes to our expectations that underwriting profits in the U.S. may remain under pressure this year and next, Swiss Re Institute economists wrote. Policy shopping may partly account for why the motor vehicle-insurance measure in the U.S. consumer price index, which was up 22% year-over-year in March, was far above the same relevant measure in the producer price index, at 6.5%. The latter reflects switching behavior, according to the Swiss Re Institute economists. Allstate shares were down about 1% Thursday, as were shares of rival Progressive. As a group, though, S&P 500 property-and-casualty insurers are still up nearly 20% in 2024. This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here_._ This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage). (END) Dow Jones Newswires May 02, 2024 14:07 ET (18:07 GMT)

• DJ Allstate Is Maintained at Overweight by JP Morgan, from 2 hours ago by Dow Jones

  2 hours ago by Dow Jones
  Companies Mentioned: ALL
  
  Ratings actions from Benzinga: https://www.benzinga.com/quote/ALL/analyst-ratings
  
  (END) Dow Jones Newswires
  
  May 02, 2024 11:29 ET (15:29 GMT)
  

• JPMorgan Adjusts Price Target on Allstate to $193 From $185, from 3 hours ago by MT Newswires

  3 hours ago by MT Newswires
  Companies Mentioned: ALL
  10:12 AM EDT, 05/02/2024 (MT Newswires) -- The Allstate (ALL) has an average rating of outperform and price targets ranging from $130 to $206, according to analysts polled by Capital IQ. (MT Newswires covers equity, commodity and economic research f...

• Morgan Stanley Adjusts Price Target on Allstate to $205 From $190, from 4 hours ago by MT Newswires

  4 hours ago by MT Newswires
  Companies Mentioned: ALL
  09:39 AM EDT, 05/02/2024 (MT Newswires) -- Allstate (ALL) has an average outperform rating and price target range of $130 to $206, according to analysts polled by Capital IQ. (MT Newswires covers equity, commodity and economic research from major ba...

• Sector Update: Financial Stocks Advance Premarket Thursday, from 4 hours ago by MT Newswires

  4 hours ago by MT Newswires
  Companies Mentioned: FAS, FAZ, WTW, XLF, CB, ALL, ARES
  09:16 AM EDT, 05/02/2024 (MT Newswires) -- Financial stocks were advancing premarket Thursday with the Financial Select Sector SPDR Fund (XLF) up 0.6% recently. The Direxion Daily Financial Bull 3X Shares (FAS) was 1.8% higher and its bearish counte...