UBS Warburg LLC analyst Michael Lewis correctly predicted that Allstate Corp. and Hartford Financial Services Group Inc. would beat the consensus estimate for third-quarter earnings. Lewis estimated that Allstate would earn 74 cents per share in the third quarter, while the average estimate was 70 cents. The company earned 72 cents. The weather during the quarter has also been mild. But what goes around comes around.
Investors don t like surprises, and the weather can surprise the industry at any moment.
The level of the losses is a concern. The Cincinnati-based insurer s stock also fell. Right now, few investors in the industry seem to be heeding the warning signs.