Credit: losonsky/Adobe Stock
Allstate shares have begun to slip through the second quarter of 2025, despite reporting a drop in catastrophe losses during the period.
Company shares are down roughly 0.73% the last five days, around 3.20% lower the last month and over 2% in the red the last three months. In late July, Allstate shares were up over 3% from the previous three months.
Meanwhile, estimated pretax catastrophe losses for the second quarter dropped to $1.99 billion from $2.12 billion, Allstate said in a July release.
"P&C companies like Allstate have become a quiet go-to for investors diversifying away from mega cap growth stocks," TradeStation's Global Head of Market Strategy David Russell told PropertyCasualty360.com.
"They're classic value names that have enjoyed pricing power at a time of higher inflation," he said. "Wall Street now sees the potential for margin expansion as losses narrow, especially in auto policies. Organic growth could follow if the housing market expands in the coming years."
Overall, insurance stocks have outperformed in 2025 as Wall Street traders ride a wave of better underwriting, premium growth and high interest rates.
During the last 12 months, the insurance industry is up nearly 22%, beating the S&P 500. Meanwhile, premiums coming in crossed the $1 trillion mark for the first time. Reserves have also been managed tightly and investment income is improving with existing rates.
“It's one of the few sectors where the outlook is clear, and property and casualty carriers are holding up well because the fundamentals are stronger than they’ve been in years,” said Trevor Saliba, CEO of NMS Capital Group.
“Underwriting’s tightened, the pricing environment is still rational and carriers are being smarter about risk,” he added. “On the reinsurance side, capacity hasn’t flooded back in the way some expected, so we’re seeing firm conditions stick, particularly after this year’s cat events.”
Year-to-date, insurance names like Root and Heritage are up big—after the stocks skyrocketed nearly 120% and 41% respectively the last 12 months. Other big winners in 2025 include American International Group with a rough 11% spike since January, Berkshire Hathaway near 10% and Travelers Companies around 14%.
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