Allstate (ALL)

Part of Allstate's response to the 2005 hurricane season was to shed risky policies, but this has not always been possible. The government of Florida has required Allstate to continue to insure its clients for at least 100 days before terminating their policy, and threatens to take more severe action.

Statistics tell no lies, Allstate has an equivalent in assets totaling 11% over their 89% in total liabilities. Great so now I see the picture scientists say hurricanes are said to be worsening due a climate change and the shift of our polararity. Here is a company with what can be considered to be higher than industry average in liabilities. One of the largest hurricane insurers. I'm going to be staying far away from this one until at least after hurricane season. I wouldn't be surprised to see a large drop in total value as it's been predicted to be one heck of a hurricane season. Then again when is the weather man right all the time?

Allstate has purchased insurance to hedge out hurricane risk, but it faces major risk from asbestos. If policy holders discover their homes are contaminated with asbestos, Allstate is liable for paying them back, and this could be a major expense.

Although Allstate is well-positioned to avoid catastrophe, it has limited potential for growth in sales or profits. It cannot benefit from a weak hurricane season because of its reinsurance, and it is too large to expand take on many more customers.