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Here's How Much You'd Have If You Invested $1000 in Allstate a Decade Ago
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Allstate (ALL - Free Report) ten years ago? It may not have been easy to hold on to ALL for all that time, but if you did, how much would your investment be worth today?
Allstate's Business In-Depth
With that in mind, let's take a look at Allstate's main business drivers.
Founded in 1931 and headquartered in Northbrook, IL, The Allstate Corporation is the third-largest property-casualty (P&C) insurer and the largest publicly-held personal lines carrier in the U.S. The company also provides a range of life insurance and investment products to its diverse customer base. It provides insurance products to approximately 16 million households through more than 12,000 exclusive agencies and financial specialists in the U.S. and Canada.
As of Dec 31, 2022, total policies in force amounted to 189.1 million. The company generated $51.4 billion in revenues in 2022, in which Property and casualty insurance premiums, and Accident and health insurance premiums and contract charges contributed 89.3% and 3.6%, respectively. The rest was generated through other sources and investment income.
Following the closing of the National General acquisition, the company reports through the following segments: Property-Liability, Protection Services and Allstate Health and Benefits.
Property-Liability (90.7% of total revenues in 2022): It was previously Discontinued Lines and Coverages. This segment incorporates Allstate Protection and Run-off Property-Liability.
Protection Services (4.8%): It includes consumer product protection plans. Brands like Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection are included in this segment. The company provides identity protection services and data and analytic solutions utilizing automotive telematics information.
Allstate Health and Benefits (4.4%): It was previously Allstate Benefits. Accident and health results of National General are incorporated in this segment. It provides life, accident, short-term disability, critical illness, and multiple other health insurance products.
The remaining revenues were generated from other sources.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Allstate a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,802.56, or a 180.26% gain, as of January 16, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 158.81% and gold's return of 60.15% over the same time frame.
Going forward, analysts are expecting more upside for ALL.
Allstate's consistent growth in written premiums, attributed to strategic acquisitions and expanding ventures, is reflected in its financial history. Continued rate hikes to counter inflationary pressures on loss costs are expected to continue in its auto insurance business for 2023. Its focus on optimizing core operations has allowed it to redirect resources toward high-growth areas. Cost-saving initiatives are projected to boost profits. Robust cash flows facilitate shareholder value-boosting measures. Its shares have outperformed the industry in the past six months. However, the burden of high debt is resulting in increased interest costs. The surge in vehicles on the road will drive up claim expenses for auto insurers. ALL remains prone to catastrophe losses, impacting underwriting results. As such, the stock warrants a cautious stance.
Over the past four weeks, shares have rallied 8.85%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Allstate a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Allstate (ALL - Free Report) ten years ago? It may not have been easy to hold on to ALL for all that time, but if you did, how much would your investment be worth today?
Allstate's Business In-Depth
With that in mind, let's take a look at Allstate's main business drivers.
Founded in 1931 and headquartered in Northbrook, IL, The Allstate Corporation is the third-largest property-casualty (P&C) insurer and the largest publicly-held personal lines carrier in the U.S. The company also provides a range of life insurance and investment products to its diverse customer base. It provides insurance products to approximately 16 million households through more than 12,000 exclusive agencies and financial specialists in the U.S. and Canada.
As of Dec 31, 2022, total policies in force amounted to 189.1 million. The company generated $51.4 billion in revenues in 2022, in which Property and casualty insurance premiums, and Accident and health insurance premiums and contract charges contributed 89.3% and 3.6%, respectively. The rest was generated through other sources and investment income.
Following the closing of the National General acquisition, the company reports through the following segments: Property-Liability, Protection Services and Allstate Health and Benefits.
Property-Liability (90.7% of total revenues in 2022): It was previously Discontinued Lines and Coverages. This segment incorporates Allstate Protection and Run-off Property-Liability.
Protection Services (4.8%): It includes consumer product protection plans. Brands like Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection are included in this segment. The company provides identity protection services and data and analytic solutions utilizing automotive telematics information.
Allstate Health and Benefits (4.4%): It was previously Allstate Benefits. Accident and health results of National General are incorporated in this segment. It provides life, accident, short-term disability, critical illness, and multiple other health insurance products.
The remaining revenues were generated from other sources.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Allstate a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,802.56, or a 180.26% gain, as of January 16, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 158.81% and gold's return of 60.15% over the same time frame.
Going forward, analysts are expecting more upside for ALL.
Allstate's consistent growth in written premiums, attributed to strategic acquisitions and expanding ventures, is reflected in its financial history. Continued rate hikes to counter inflationary pressures on loss costs are expected to continue in its auto insurance business for 2023. Its focus on optimizing core operations has allowed it to redirect resources toward high-growth areas. Cost-saving initiatives are projected to boost profits. Robust cash flows facilitate shareholder value-boosting measures. Its shares have outperformed the industry in the past six months. However, the burden of high debt is resulting in increased interest costs. The surge in vehicles on the road will drive up claim expenses for auto insurers. ALL remains prone to catastrophe losses, impacting underwriting results. As such, the stock warrants a cautious stance.
Over the past four weeks, shares have rallied 8.85%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.