Investing in the Land
To ensure we are prepared with strong capital resources in the event of a catastrophe, Allstate responsibly invests the premiums we receive from our customers. To protect our investments, we work to diversify our portfolios in innovative ways. For example, portions of the premiums from both the Property and Casualty and Life sides of our business are invested in three primary industries: global farmland, agricultural businesses and timber.
For the past seven years we have diligently developed our agricultural and timber investment portfolios and we are proud to be one of the few investors with dedicated teams in this space. Unlike our peers, we have a team of three people focused full-time on agricultural and timber investments. As a result, Allstate has an advantage over our peers and is a preferred partner. These investments have opened a myriad of business opportunities and bring Allstate into our customers’ homes in exciting ways. For example, an organic dairy Allstate invests in is the exclusive provider of organic milk to Costco, and we are part owners of the largest pecan orchard and processor in the country.
We take both a short- and long-term view when considering the risks inherent in this portfolio, including the risks posed by climate change. For example, Allstate is a partial owner of large tracts of farmland in water-stressed areas like California and Australia. We are working with our partners on ways to mitigate risks facing the land we currently support and hope to support for many years to come. When presenting investments to the Investment Committee, it is important that the team addresses risks that agriculture and timber businesses face today, as well issues that could intensify in the next six months or six years.