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.
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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