Should Allstate’s Shares get a better Premium

By | June 8, 2009
Allstate has had their share of financial turmoil as well and have taken steps to correct. Read the rest of the article from Barron’s…
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Allstate Shares Deserve a Better Premium

INSURANCE-GIANT ALLSTATE has endured scores of profit-shredding natural calamities over its more than seven decades of existence — from Hurricanes like Katrina to California’s Northridge earthquake. Yet none of these events has proven as devastating to Allstate’s financials as the tsunami that hit the global financial markets over the past year.

To wit, heavy asset write-downs in Allstate’s now $94 billion investment portfolio were largely responsible for the company’s posting a loss of $1.7 billion for 2008 and of $274 million in this year’s first quarter. This compares to lush profits of $4.6 billion, or $7.83 a share, and $5 …

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