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Allstate (ALL) Joins Forces with CIT Bank for New Offering

The Allstate Corporation  ALL recently entered into a definitive agreement with CIT Bank, the banking subsidiary of CIT Group Inc. CIT. Under the strategic partnership, the companies would offer revolving- and term-loan commitments of $15–$100 million to middle-market companies across various industries and business cycles.

CIT Northbridge will serve as a financial partner for middle-market companies. It will provide a wide range of flexible asset-based debt solutions. CIT Asset Management LLC will act as the investment advisor to the deal.

Allstate has undertaken several inorganic strategies to remain on its growth track. It has made several acquisitions, mergers, alliances and divestures to streamline its core operations as well as diversify its business lines for further profitability. In Jan 2017, Allstate acquired SquareTrade to provide consumer protection plans across the U.S and  diversify its operations in warranty business.

These growth strategies helped the company earn shareholders’ confidence. Year to date, the stock has rallied 20%, substantially outpacing the Zacks categorized Property and Casualty Insurance industry’s gain of only 5%.

Management of CIT Bank remains optimistic about this strategic partnership. It ensures that CIT Northbridge would further bolster its efforts to expand the commercial lending franchise with the help of its extensive experience in financing, leasing and advisory services, and Allstate's investment expertise and capital.

Allstate believes that the joint venture reflects the shared vision of both the companies for building a unique credit platform with attractive risk-adjusted returns. The company also plans to expand its alternative investment portfolio with the help of its experience and the alliance with CIT Bank.

Zacks Rank and Stocks to Consider

Allstate currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the insurance industry include Reinsurance Group of America, Incorporated RGA and FBL Financial Group, Inc. FFG. Both of the stocks carries a Zacks Rank #2 (Buy). You can see https://www.zacks.com/stocks/buy-list/?ADID=zp_1link&ICI... _1link">the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Reinsurance Group deals in reinsurance business. The company delivered positive surprises in three of the last four quarters with an average beat of 5.08%.

FBL Financial sells individual life insurance and annuity products. The company delivered positive surprises in two of the last four quarters with an average beat of 1.98%.

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CIT Group Inc (DEL) (CIT): Free Stock Analysis Report
 
Reinsurance Group of America, Incorporated (RGA): Free Stock Analysis Report
 
FBL Financial Group, Inc. (FFG): Free Stock Analysis Report
 
Allstate Corporation (The) (ALL): Free Stock Analysis Report
 
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