(Bloomberg) — Allstate Corp., the largest publicly traded U.S. home and auto insurer, helped form a freight rail-car leasing company as Chief Executive Officer Tom Wilson expands his bets on hard assets to generate better returns than bonds.
The insurer joins CC Industries and Duchossois Capital Management, which is known as DCM, in starting the venture, named Riverside Rail, the investors said Friday in a statement that didn't disclose terms. The new company acquired 2,032 rail cars and is backed by a credit facility led by BMO Harris Bank.
Wilson has been boosting wagers on assets including real estate and timber while he cuts back on bonds, which are facing pressure from near record low interest rates. The insurer's portfolio was valued at more than $77 billion as of Dec. 31, with about 6.3% in limited partnerships, up from 5.6% a year earlier.
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