Monday, July 24, 2006
Why Allstate Stock Is A Wise Investment
About a month ago we filed a complaint against Allstate with the Insurance Commissioner in Louisiana. I read today that we are but one out of 1,287 policy holders in Louisiana who haved filed a hurricane-related consumer complaint against Allstate. Allstate has had more complaints than any other insurer. They are the state's second largest insurer with just over 20 percent of the policies, Statefarm is the largest with about 32%. Allstate recently reported $1.2 billion for second-quarter profit. Allstate's Chief Executive Edward M. Liddy said it was a strong year, and that "we are growing our business and generating strong profitability while at the same time we are managing down our exposure to catastrophes in the lines of business and areas of the country where the risk is the greatest." So buy stock in Allstate if your goal in life is to make money at any cost. Suprisingly, at about $57 per share, it is more affordible than 30 pieces of silver. And they've got quite a racket going for them. They get fools like me to pay them money every month for several years thinking I am insuring my house against wind and flood damage, and then after the largest natural disastor in this nation's history, they don't pay us. Instead, they pay some hack engineers to say it wasn't windy enough during Katrina to make a house lean. And when it goes to court, Allstate will be able to claim they were simply relying on the opinion of "experts" and won't be directly liable. And now Allstate has threatened to pull out of Louisiana if they are not able to drop coverabe for 30,000 homeowners who they feel are too much risk. That would leave 220,000 homes without insurance. I had hoped that Katrina would have woken us up, and we would finally realize that our society needs more of a measure than just profit alone.