Why Allstate Shares Crashed Today
Shares of insurer Allstate (NYSE: ALL) were down 12.2% as of 2:05 p.m. ET on Thursday in response to disappointing preliminary results for its fiscal third quarter that ended in September. In short, inflation is taking a sizable toll on the company's bottom line.
Inflation isn't just adversely impacting consumers. It's also working against corporations, including insurance companies.
That's the takeaway from an Allstate warning to its shareholders posted today. Its official third-quarter numbers scheduled to be released on Nov. 2 will likely show a loss for the three-month stretch. Namely, today's published estimate puts the looming quarterly loss somewhere between $675 million and $725 million on $12 billion worth of premium revenue. Even after factoring in accounting adjustments, higher home, auto, and healthcare prices mean the company is paying out more than it's taking in.
Source Fool.com
