The “Good Hands” teams may soon be seeing good news, too, as the insurer continues to generate positive figures.
Allstate has been making insurance news on a steady basis over recent days as its efforts to break away from its staid image in favor of one that is more modern, through expanded online support, is now beginning to come to fruition.
The transformation of this second largest personal insurer in the United States is a highly positive one.
Having started approximately six years ago, this made small insurance news headlines under CEO Thomas Wilson, at the time. However, Wilson’s vision began taking off in 2011, and now it is gaining the type of momentum that the insurer has been wanting to see. Skeptics of the value of purchasing the Esurance online platform for $1 billion, a couple of years ago, are starting to take a step back and are wondering if they may have been wrong.
This insurance news is helping to give Allstate’s ability to compete a considerable shot in the arm.
The expansion of Allstate’s online offerings has given the company the ability to compete directly with its rivals such as Progressive and Geico, that were already heavily established over the internet.
The industry has not failed to notice this insurance news, as the stock price of Allstate continues to rise. Not unlike many other stocks in the financial services sector, the insurer has seen considerable spikes in its own stocks since the financial crisis. However, it looks as though the previous tripling that the insurer has experienced is not nearly the end of this growth.
It is now being predicted by financial and insurance industry experts that the Allstate pricing power will enhance its overall performance, giving its stock the chance to gain by another 30 percent in coming years. The stock trades at 1.1 times the company’s book value, and the latest insurance news from the company has indicated that it is 9.3 times the 2014 earnings estimates of $5.14 per share. This is still below its competitors and is much lower than its 14.4 five year average. Furthermore, the 2.1 percent dividend yield at Allstate has $1.1 billion for repurchasing shares.