Citi analyst Suneet Kamath initiated coverage of Allstate with a Buy rating and $135 price target. The analyst initiated coverage on 11 U.S. Property and Casualty insurers with a neutral sector view. Despite a strong franchise and growth prospects, Allstate trades at a notable discount to its average relative price-to-earnings, says the analyst.

The Allstate Corporation announced estimated catastrophe losses for the month of March of $328M or $259M, after-tax. March month catastrophe losses include six events estimated at $343M or $271M, after-tax, with approximately 80% of the losses related to one hail event, partially offset by favorable reserve reestimates for prior events. Total catastrophe losses for the first quarter were $731M, pre-tax. Rate increases for Allstate brand auto insurance resulted in a premium impact of 0.9% for the month of March and 2.4% year-to-date. Rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 0.7% for the month of March and 3.4% year-to-date. Implemented rate increases and inflation in insured home replacement costs resulted in a 11.9% increase in homeowners insurance average gross written premium in March 2024 compared to the prior year. Our implemented rate exhibit for auto and homeowners insurance has been posted on www.allstateinvestors.com.