Allstate posts strong Q2 with reserve releases and higher investment income, shares offer 10%+ upside.

Allstate reported robust Q2 earnings driven by $1.5 billion in reserve releases and a quiet catastrophe environment, which supported healthy underwriting margins. Investment income rose 34% thanks to higher interest rates and increased equity allocation, while maintaining a conservative fixed-income portfolio. Shares trade at attractive valuations of 7x current-year earnings and near 9x normalized EPS, with potential upside over 10% supported by share buybacks and durable margins. This positions Allstate as a compelling buy for investors seeking growth and capital returns.