Is Allstate (ALL) Still Undervalued After Its Preferred Dividend Declaration?

Analysts updated ratings on three financial companies. KBW's Shields maintained a Sell on Allstate (ALL) with a $250 target. TD Cowen's Lee rated East West Bancorp (EWBC) Buy with a $150 target. Morgan Stanley's Cyprys kept StepStone Group (STEP) at Hold with a $63 target.

Allstate reported $748 million in pre-tax catastrophe losses for August 2026, bringing the total to $3.15 billion for the year. The losses were driven by severe weather, with 50% from a single wind and hail event. Allstate has $150 million in catastrophe bonds and $1 billion in reinsurance, but not all losses will qualify to erode these protections.

Allstate (NYSE:ALL) reported strong Q2 2026 earnings, beating expectations with $18.6B revenue and $3.27B net income. However, scrutiny over its claims practices, including a denied water-damage claim, raises reputational and regulatory risks. Analysts project $76.5B revenue and $3.9B earnings by 2029, but some caution about long-term profitability.

Allstate Insurance has requested approval from California regulators to resume writing new homeowners policies, ending a freeze since 2022. The request is tied to a 1.4% average rate increase, with two-thirds of policyholders seeing premiums decrease. If approved, Allstate must write at least 2,064 new policies by 2029. The move follows regulatory changes allowing insurers to factor in reinsurance costs and catastrophe modeling. Allstate's market share in California has slightly decreased since

Allstate (ALL) reported $3.2B net income for Q2 2026, up 56% YoY, with a combined ratio of 86.6%. Homeowners' premiums rose 5.8% YoY, contributing to $4.75B in total written premiums. Profits improved due to higher premiums and lower catastrophe losses, but homeowners face rising costs. Florida's tort reforms also boosted results. Revenues reached $18.6B, and share repurchases were $1B for the quarter.

Oklahoma AG Gentner Drummond sued Allstate and State Farm, alleging they systematically defrauded home insurance policyholders by denying or underpaying wind- and hail-related claims. The suits claim the companies altered claims standards and limited adjusters' authority to minimize payouts, profiting billions. Allstate and State Farm deny wrongdoing. Similar investigations are ongoing in California and Illinois. Oklahoma has high home insurance costs and claim denial rates, with a 13% increase