Allstate's catastrophe losses fall in 2026, but UBS downgrades stock to Neutral amid profit concerns

Allstate reported a 43.7% drop in first-quarter catastrophe losses year-over-year, with Q2 losses also down 14% compared to 2025. Despite improved underwriting results, UBS downgraded Allstate from Buy to Neutral, citing concerns that favorable loss ratios may normalize and pressure future earnings. The insurer still faces unpredictable catastrophe risks, especially with the ongoing hurricane season, which could impact its full-year performance.