This Insurer Is Quietly Up Double Digits in a Month. Should You Invest $1,000?

Core Viewpoint - Allstate has reported strong third-quarter financial results, leading to an increase in stock price and positive investor sentiment [1][2]. Financial Performance - Revenue for the third quarter reached $17.26 billion, a 4% increase year over year, surpassing Wall Street's forecast of $16.87 billion [2]. - Net income was $3.75 billion, three times higher than the previous year, with adjusted net income also tripling to $3 billion. Earnings per share were $11.17, significantly exceeding the expected $7.55 [3]. - Premiums written increased by 6.3% compared to the same quarter last year, driven by higher average premiums for auto and homeowners insurance [4]. Premiums and Policies - Total premiums in force rose 6.1% from the prior year to $14.5 billion, indicating strong growth in the insurance business [4]. - Allstate has partnerships with major retailers such as Walmart, Costco Wholesale, and Target to sell insurance policies [4]. Catastrophe Losses - Catastrophe losses decreased by $752 million to $479 million, largely due to favorable weather conditions without major hurricanes or tropical storms [6]. Underwriting Profitability - The property-liability combined ratio improved from 96.4% a year ago to 80.1% in the third quarter, reflecting better underwriting profitability [7]. Investment Income - Allstate's investment portfolio grew to $82.3 billion from $77.4 billion in the previous quarter, generating approximately $950 million in investment income, an increase of $166 million year over year [9]. Investment Consideration - The company offers a quarterly dividend of $1 per share, resulting in a forward yield of about 1.9%, and trades at a low valuation of 7 times trailing earnings, presenting a potential investment opportunity [10].