Allstate to pay $1 billion for Esurance and Answer Financial
May 18, 2011 — Allstate announced Wednesday it plans to buy Esurance and Answer Financial for a total of roughly $1 billion.
Esurance and Answer Financial are owned by White Mountains Insurance Group, which has approved the transaction. It is expected to close this fall.
Thomas Wilson, Allstate’s president, chairman and CEO, said the purchase would help the company meet a broader range of individual preferences.
“Esurance will expand our ability to serve customers that are more self-directed but still prefer a branded product,” Wilson said. “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.”
The acquisition also provides two new sources of growth and an instant increase in customer relationships, Wilson said.
Esurance is the third-largest provider of online auto insurance quotes and the third-most recognized brand for companies selling personal auto insurance online, according to Allstate. During the last five years, Esurance has more than doubled policies and grown premiums an average of 20 percent a year.
Answer Financial serves self-directed customers, providing quote comparisons and assistance choosing from 20 brand-name insurers.
Allstate is the largest publicly held personal lines insurer in the nation, offering auto, home, life and retirement insurance. For more information on the company, go to allstate.com.