Allstate (ALL): The Arsonist Selling Fire Insurance

What we Are Doing with this Stock?

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Insurance companies are supposed to be the adults in the room.

They price risk.

But Allstate (ALL) is behaving like a teenager who just discovered a loophole.

Photo by Jen Theodore on Unsplash

They are aggressively raising premiums in climate disaster zones while simultaneously lobbying against climate regulations and insuring the very fossil fuel projects causing the disasters.

Financially, it’s a short-term win since profits are up 400% year-over-year.

But for the ESG investor, this is the ultimate betrayal: a company profiting from the destruction it helps finance.

We call it The Arsonist’s Fire Insurance.

The Deep Dive (beyond the paywall)

• The Climate Irony: How Allstate is fleeing California and Florida (Social Risk) while insuring oil pipelines (Environmental Risk).

• The Valuation Trap: Why a P/E of 11x looks cheap until you realize their “growth” comes from abandoning their customers, not adding new ones.

• The Helix Position: We are shorting the Climate Hypocrisy.

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