The Allstate Corporation (NYSE:ALL) shares gained 4% to close at $124.92 on Monday after Trian Fund Management, an activist hedge fund owned by billionaire investor Nelson Peltz, has apparently acquired an equity interest in the Illinois-based insurance company, Reuters reported, citing people familiar with the matter.
Allstate has seen five straight quarters of losses that the company blamed on natural disasters due to climate change, such as the Maui wildfire in Hawaii.
The media outlet noted that Allstate has hired investment bankers to advise it on how to handle Trian, although the hedge fund’s exact stake and plans for Allstate have yet to be determined.
Earlier this year, Peltz launched a proxy fight with Disney in a failed attempt to get a seat on its board of directors.
Shares of Allstate have fallen 9% year to date.
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