Progressive, Allstate stocks surge as insurance prices jump

Stock Performance - Progressive and Allstate stock prices have surged by more than 50% in the past 12 months, adding billions to their market caps [1] - Progressive's stock has risen by 220% over the past five years, while Allstate's stock has increased by nearly 100% in the same period [1] - Progressive's market cap has grown to over $120 billion, and Allstate's market cap is now valued at more than$40 billion [1] Insurance Premium Trends - US auto insurance premiums have surged, with the average cost rising to $2,545, a 26$58 billion, up from $49 billion in 2022, while Allstate's revenue rose to over$52 billion from $47 billion [4] - Progressive reported a net income of over$3.9 billion in 2023, whereas Allstate recorded a net loss of over $133 million, an improvement from the previous year's loss of over$1.2 billion [4] Factors Driving Premium Increases - Inflation has driven up vehicle repair costs, with spare parts prices rising sharply in recent months [4] - The number of vehicle accidents and motor vehicle death rates in the US has been increasing, contributing to higher insurance claims [4] - Climate change impacts, such as hurricanes and fires, have forced some insurers to withdraw from states like California and Florida, affecting housing and vehicle insurance markets [4]