Deutsche Bank: Tornado will not devastate Allstate

Deutsche Bank analyst Joshua Shanker said Wednesday that the devastating tornado in Oklahoma should have limited impact on Allstate Corp.

The analyst said in a research note that Monday's tornado strike will likely cost Allstate $100 million to $300 million in pre-tax losses. This is based on Allstate's estimated 4.3 percent share of Oklahoma's catastrophe-exposed premiums and 6.3 percent of homeowners' premiums last year.

Allstate proved to investors after Hurricane Sandy that it is no longer has higher hurricane risk than its peers, but Shanker said some investors remain leery of the insurer's catastrophe risk, due to tough periods with tornadoes in the past.

The company said in a statement late Tuesday that its catastrophe response teams were on the ground in Oklahoma to assist their customers.

Shanker said if the company delivers a profitable quarter in the face of meaningful non-hurricane losses, it could reassure investors of its earnings stability.

Deutsche Bank has a "Buy" rating on the company's shares and a $57 price target on the stock.

Shares of the insurer slipped 46 cents to $48.62 in afternoon trading, in line with broader market movement.

Allstate's share value has increased nearly 50 percent since this time last year.