Allstate’s first-quarter results were encouraging, as the company continues to move the past the underwriting issues that have plagued it over the past couple of years. The adjusted annualized return on equity of 11% in the quarter suggests the no-moat company has brought returns back to an acceptable level. We will maintain our $130 fair value estimate.
Allstate has historically had a differentiated approach through its use of captive agents and its bundling strategy.
Allstate's growth prospects are quite limited, given its dependence on the declining captive agent channel, and the maturity of the insurance industry.
|
Metric
|
ALL
|
BRK.B
|
PGR
|
|---|---|---|---|
Price/Earnings (Normalized) | 23.53 | 22.06 | 23.28 |
Price/Book Value | 2.74 | 1.55 | 5.74 |
Price/Sales | 0.78 | 2.18 | 1.93 |
Price/Cash Flow | 18.16 | 24.09 | 21.56 |
|
Metric
|
ALL
|
BRK.B
|
PGR
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | 4.90 | 18.86 | 27.54 |
|
Metric
|
ALL
|
BRK.B
|
PGR
|
|---|---|---|---|
Return on Assets (Normalized) | 1.41% | 3.90% | 6.83% |
Return on Equity (Normalized) | 9.70% | 7.49% | 32.37% |
Return on Invested Capital (Normalized) | 6.92% | 6.61% | 24.07% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
PGR
| Progressive Corp | Hjnmssvf | Bzcyyc | $125.2 Bil | |
CB
| Chubb Ltd | Rqcmbmj | Bbxxzy | $103.5 Bil | |
TKOMY
| Tokio Marine Holdings Inc ADR | Pxypkwlh | Wcrp | $63.9 Bil | |
TKOMF
| Tokio Marine Holdings Inc | — | Qcs | $63.0 Bil | |
TRV
| The Travelers Companies Inc | Cywnmhbl | Rlbqm | $49.8 Bil | |
HIG
| The Hartford Financial Services Group Inc | Cvghcxrtr | Ydwkh | $30.1 Bil | |
IFCZF
| Intact Financial Corp | — | Gkxnmy | $29.8 Bil | |
MKL
| Markel Group Inc | Xnxqggcd | Nrrr | $21.3 Bil | |
WRB
| WR Berkley Corp | Dzgklnwjxs | Cbhpmlf | $20.4 Bil |
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