Allstate to buy Esurance, Answer Financial
Allstate Corp. announced Wednesday that it will buy online auto insurance seller Esurance and quote comparer Answer Financial in a deal expected to total about $1 billion, Crain’s Chicago Business reported.
The deal helps address a gap in Allstate’s distribution; much of the growth in auto insurance has been in online sales rather than the agent-selling model Allstate uses. Allstate is the No. 2 U.S. auto insurer.
“Our Allstate agencies do an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product,” Allstate CEO Thomas Wilson said in a statement. “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.”
Northbrook, Ill.-based Allstate said it expects the deal to close in the fall. It is buying the properties from White Mountains Insurance Group Ltd., a Bermuda-domiciled holding company.