New Orleans Insurance

The action of the Allstate (ALL) decreased by 3.5% in the wake of Hurricane Katrina, a few points higher than the average for property and accident insurance, since 26 August.

Although the company has devices in the region, has not yet ahnend how much they have to pay on claims related to the disaster, Wall Street analysts agree that the losses are considerable. Allstate is among the best homeowners insurers in Louisiana, Mississippi and Alabama after Insurance Information Institute.

But insurers are in the business of planning for disasters. The 5th September issue of Dow Theory Forecasts notes that insurers like Allstate “great loss reserves and should be able to monitor, without any violation of the rights of long-term prospects.” Allstate is in the Investment Newsletter “buy” list of 12 months of profits.

To industry experts estimate that the total number of insured damage in the Gulf-US could reach 25 billion dollars, and The Wall Street Journal reported Tuesday that losses could hit $ 35 billion. For that, as part of the insurance institute of information indicates that insurers paid more than $ 15 billion (about $ 21 billion in today’s dollars, the USA) for claims in connection with the Hurricane Andrew in Florida on Hit in 1992 and is the most expensive storm in the minutes.

In an interview published in the Journal of Tuesday, Allstate Chief Executive Officer Edward Liddy said that although the company has more than one thousand devices to work in the Gulf States, floods and other conditions, it is difficult to find in New Orleans. There may be many weeks or months before any reliable estimates for damage caused by Katrina are available, he said.

It also remains uncertain, such as “Katrina” has an impact on insurance premiums, although some experts predict that home owners and auto insurance premiums in affected areas, at least, are increasing. Kiplinger drafters of the letter believe Katrina will contribute to an increase in the insurance industry damage rate of 10% to 15% next year for coastal areas, even this year.

Lehman Brothers analyst Jay think yellow, the decline in Allstate Action offers an opportunity to purchase. He said Katrina should not affect the company’s balance sheet and noted that most homeowners policy floods. Much of the damage in New Orleans has been caused by the floods. (Flood insurance is sold by a government program.)

Standard & Poor’s Analyst Catherine Seifert Allstate true, as it is attractive. She said that last year, the company paid more than $ 1 billion intended to cover losses, first of four hurricanes in Florida, and even increased its share of the market. The company reached a profit of $ 4.41 per share in 2004 and authorized a $ 4 billion share repurchase program in November last year.

And Allstate is a great company with a presence in the USA, it is the second personnel lines claims insurers in the country, by department Farm. Seifert said that Allstate controls 11% to 12% of staff car insurance market and could gain share in these cases. The company also sells life insurance, pensions and other products.