Looking to augment its direct sales channel, Northbrook, Ill.-based Allstate Corp. has purchased Esurance and Answer Financial from White Mountains Insurance Group Ltd. for approximately $1 billion. The boards of directors of both companies approved the deal, which is expected to close in the fall of this year.

By acquiring these two companies, Allstate looks to broaden its business model, which has long relied on captive agents for sales. With San Francisco-based Esurance, Allstate acquires the third-largest provider of online auto insurance quotes whose premiums volume has grown an average of 20% over the past five years. It also acquires a Web-based technology stack developed specifically for the needs of self-directed consumers.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access