Trian Fund Management, the activist hedge fund firm run by Nelson Peltz, has built a holding in Allstate Corp, one of the insurers impacted by the fallout of natural disasters including the Maui wildfire in Hawaii, according to a report by Reuters.
The report cites people familiar with the matter as revealing that the moves upped the pressure on Allstate Chief Executive Officer Tom Wilson, who has led the business since 2007, and has blamed the company’s recent poor performance on natural disasters exacerbated by climate change.
According to Reuters’ sources, Allstate has hired investment bankers to advise it on how to handle relations with Trian, although the hedge fund has yet to make clear its intentions regarding the insurer.
Allstate shares jumped 6% on the news to $127.46 in Monday trading in New York, were news of Trian’s stake broke, having previously dropped 9% year-to-date, significantly underperforming a 4% rise in the S&P 500 Property & Casualty Insurance index.
