Citi Downgrades Allstate, Says Inflation Could Raise Claims Costs

Citi Downgrades Allstate, Says Inflation Could Raise Claims Costs


Rising costs for cars and homes are expected to hold up Allstateto continue its good start to the year, according to Citi.

Allstate shares have gained about 25% year-to-date, recovering to pre-pandemic levels and taking the company’s market cap to $ 41 billion.

Analyst Suneet Kamath lowered insurance stock to neutral relative to buy, saying in a note to clients Wednesday night that higher claims costs could squeeze the company’s profits.

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