2024-04-17 20:17:00 ET
Summary
- Vehicle insurance premiums are rising steeply, contributing to stickier inflation than expected.
- The iShares US Insurance ETF has outperformed the S&P 500 in the past year, led by insurers like Allstate.
- ALL is the largest publicly traded personal lines insurance company and has strong earnings and growth prospects based on current estimates.
- I highlight expectations ahead of its Q1 report and spot key price levels to watch.
The big news in last week’s CPI report was undoubtedly the steep rise in vehicle insurance premiums. That line item accounted for the bulk of the core services ex-shelter component and is to blame, at least in part, for the reality that inflation is stickier than was thought at the end of last year. Still, premium growth should ease, but profit increases are forecasted for the nation’s biggest auto insurers. Overall, the iShares US Insurance ETF (IAK) has outperformed the S&P 500 over the past year. ...
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Allstate: Strong Underwriting Margins, But Shares Due For A Breather