Oppenheimer Raising Estimates On Allstate After Earnings Report (ALL)

Oppenheimer & Co. is raising its earnings estimates on shares of insurance company Allstate ALL. It rates Allstate at Perform, but does not have a price target on shares. In the research report Oppenheimer notes, "We are raising our estimates slightly following the company's Q2 results. Our new estimates are higher by 1-2 pennies per quarter for the forecast period, mostly as a result of lower expected expenses. Our run rate ROE is about 11% on an operating basis through 2011 for the combined company. We assume that positive PIF trends we saw in standard auto in Q2 continue through the forecast period as well, driving some minor premium growth into 2011. We remain at Perform on shares of Allstate as we believe that the benefit of its uniquely large and profitable auto book is offset by a higher risk profile represented by its portfolio, homeowners' book, and life business in transition." Shares of Allstate closed at $29.42, down 21 cents yesterday.