While cheap gas and a healthier economy has been good for consumers, it has been bad for Allstate. The auto insurer has had to cover the damage in an increasing number of car accidents as those consumers hit the road more often. While the trend has hurt property and casual insurance companies across the spectrum–more economic activity generally leads to higher claims–it has particularly impacted Allstate. Its profits plunged nearly 25% in 2015. Shares of the Northbrook, lll.-based insurer fell 14% last year as the disappointing statistics, and a signs that cheap oil and an improving economy would continue, prompted a drop in confidence from investors.
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Videos about Allstate
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