|Allstate to buy Esurance, Answer Financial|
|Thursday, 19 May 2011 10:30|
Roanoke, Virginia --May 19, 2011 --The Allstate Corporation announced that it has entered into a definitive agreement with White Mountains Insurance Group, in which Allstate will purchase Esurance and Answer Financial for about $1 billion. The transaction is expected to close in the fall.
"Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments," said Thomas J. Wilson, Allstate's president, chairman and chief executive officer. "Our Allstate agencies do an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product. Esurance will expand our ability to serve customers that are more self-directed but still prefer a branded product. Answer Financial will strengthen our offering to individuals who want to be offered a choice between insurance carriers and are brand-neutral. Allstate will be the only company serving all of these consumer segments with unique insurance offerings."
Esurance is the third-largest provider of online auto insurance quotes through its website and combines technology developed specifically for the needs of self-directed and brand-sensitive consumers with a 24/7 call centre, the company says. It's also the third most-recognized brand for companies that sell personal auto insurance online. Over the past five years, Esurance has more than doubled policies in force and grown premiums on average 20 per cent per year.
Answer Financial serves self-directed consumers who seek a choice among insurance companies. It says customers are given quote comparisons and assistance in choosing from 20 brand-name insurance companies.
|Last Updated on Thursday, 19 May 2011 10:32|