News 471 Allstates Financial Footing Solid Ground Motley Fool

Allstate has certainly been making news lately with their withdrawal from coastal New York, layoffs in Chicago and lawsuits in Texas. What does all this mean for the company? Should you switch from "the state" to "the farm?" While choosing a property insurance company is all about who best fits your needs, there is no need to worry about the financial state of Allstate. Premiums will probably rise in many areas of the country, such is often the case after major natural disasters when insurers face claims pay outs and also purchase extra reinsurance. However the Motley Fool describes Allstate's financial footing as solid. The home and auto insurer took a hit last quarter, but not large enough to truly have an impact on the future of the company. Allstate is here to stay.

Read more: Does Allstate Look Good in Your Hands? (The Motley Fool via Yahoo! News) Underwrite insurance long enough and sooner or later you're going to have a really bad year. With three major hurricanes in the second half of the year, 2005 was a really bad year. And yet, as bad as it all was, leading personal insurer Allstate (NYSE: ALL - News) escaped with only about a 2% hit to its year-end book value.