Why are Allstate’s auto claims rising against the industry tide?

Northbrook, Ill.-based insurance giant Allstate posted second-quarter earnings so disappointing that investors tamped down the company’s stock by 10 percent yesterday afternoon, resulting in a market-value loss of $2.9 billion.

It was the steepest drop in stock in six years, according to Crain’s Chicago Business.

The big-picture problem: Allstate paid out more in quarterly claims and costs than it took in during the quarter, and officials were vague about the reasons. In a conference call, the CEO and president attributed the jump in claims to more drivers logging more miles on the roads.

However, other publicly traded auto insurers such as Progressive and Travelers aren’t dealing with the spike-in-claims problem. Still, Allstate’s top officials maintained the problems were external and not due to issues with underwriting risks.

Read more from Crain’s Chicago Business.