“Allstate has become the first Top 10 personal lines insurance carrier to be targeted by an activist investor during the current tough underwriting cycle.” – P&C Specialist
It’s not surprising that Allstate is being targeted by Hedge Fund heavy Nelson Peltz. What’s surprising is that Peltz is the first activist investor to target a major investor-owned P&C insurer. Since 2018 only one major Personal Lines P&C Carrier has both made money and grown Net Premiums Earned after adjusting for inflation. That’s Progressive. They have consistently demonstrated the capacity to generate superior profitability and take share away from the competition.
And activist investors have noticed and wondered why other carriers can’t do the same. The truth is they can, all it takes is a different mindset and much more creative use of technology. Which is why Allstate CEO Tom Wilson is on the hotseat.
Look for more activist investors to put pressure on an industry that they see as sleepy and very undermanaged.