Allstate Rides on Property Liability Growth & Streamlining Initiatives

Property and casualty insurer, The Allstate Corporation ALL remains well-poised on the back of rising premiums, growing protection services business and streamlining initiatives.Let’s delve deeper and analyze the factors aiding Allstate.ALL’s Impressive Earnings Surprise HistoryAllstate boasts a robust earnings surprise record. It has outpaced estimates in each of the trailing four quarters, the average surprise being 127.1%.Allstate’s Continued Top-Line GrowthPremium growth has been a key driver of Allstate’s success, supported by a diversified portfolio, strategic acquisitions and disciplined pricing. Net premiums earned have steadily increased — rising 13.9% in 2021, 8.7% in 2022, 10.4% in 2023 and 11.3% in 2024 — demonstrating the strength of its growth strategy.Strong contributions by the Property-Liability, Protection Services and Allstate Health and Benefits segments should help sustain the top-line growth momentum of Allstate. Peer companies like Palomar Holdings, Inc. PLMR and Arch Capital Group Ltd. ACGL have witnessed premium increases of 54.6% and 17.1% year over year in the fourth quarter of 2024.Allstate’s Share Repurchase PlanAllstate recently announced an 8.7% or eight cents hike in its quarterly dividend payout. The hiked dividend will be paid out on April 1, 2025, to shareholders of record as of March 10.In addition, Allstate has recently approved a new $1.5 billion share repurchase program for outstanding common stock, effective through Sept. 30, 2026. Its previous $5 billion buyback authorization expired on March 31, 2024. Since 1995, the company has repurchased 793 million shares for $43.2 billion, reducing overall common shares outstanding by 634 million, or 70.5%, primarily through buybacks.ALL’s 2025 ViewThe company expects total Property-Liability policies in force to increase this year as auto insurance policy renewal rates improve and new business continues to grow.Allstate’s Streamlining InitiativesAllstate continues to refine its business strategy by focusing on core strengths and shedding underperforming segments. In 2021, the company sold Allstate Life Insurance Company of New York, shifting its focus to personal property-liability. Through these strategic exits and cost-cutting initiatives, Allstate aims to enhance overall operational efficiency, strengthen underwriting profitability and reinvest savings into technology and product innovation. These efforts have already yielded results, with the property-liability adjusted expense ratio improving 160 basis points year over year in 2024.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Allstate Corporation (ALL): Free Stock Analysis Report Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report Palomar Holdings, Inc. (PLMR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks