| PROSPERITY PUB MARKET TALK
Like A Good Neighbor…
Like a good neighbor, State Farm is... leaving California high and dry?
Our friends at State Farm, known for their cheery commercials and khaki-wearing agents, just announced they're dropping a whopping 72,000 California home and apartment insurance policies.
Seems those wildfires are a bit too "catastrophic" for their taste.
California residents: Crack open another almond milk latte and prepare for some sticker shock. State Farm claims they need to "maintain adequate claims-paying capacity" (fancy way of saying they don't want to lose all their money), so they're packing it in.
This follows a trend of insurers fleeing the Golden State like it's a particularly crowded (and smoky) family reunion.
So, what are Californians to do? Well, you could try the state's "insurance of last resort," the poetically named FAIR Plan.
Just be prepared for prices that would make your groceries cry. The whole situation is a bit of a mess, and with fire season around the corner, things could start getting spicy.
On the bright side, at least you won't have to deal with those creepy talking khakis anymore…
On the flip side, investors in competing insurance company Allstate (ALL) could be in for a treat.
Our own analyst, Scott Welsh, recently called insurance “one of the top 25 hottest sectors in the world” (no pun intended)…
And shared a chart showing that ALL could be getting ready to break out in a big way.
He tells us a break now above $168.05 could lead to a nice bullish run.
— The Prosperity Pub Team
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