Auto Insurers' Profit Boom Fades as Forward P/E Slides From 17 to 11

The car-insurance profit boom is fading, according to an analysis, with loss trends improving after years of premium hikes and claim frequency now declining, leaving premiums room to keep falling.
The forward P/E on Allstate, Progressive and Travelers has slid to roughly 11 from nearly 17 in 2023. The analysis said peak pricing power is behind the insurers, with the next leg of earnings depending more on investment income than rising premiums.