Allstate Closes $1 Billion Esurance Deal

Allstate Corp., seeking to become a bigger player among consumers who shop online for insurance, has completed its $1 billion acquisition of Esurance and Answer Financial from White Mountains Insurance Group Ltd.

Source: Source: Chicago Tribune | Published on October 10, 2011

The Northbrook-based home and auto insurer said it will keep the current headquarters of online auto insurance provider Esurance in San Francisco and Answer Financial in Los Angeles.

Allstate's online business is expected to more than double through the deal. As of last May, however, that still would make it only a distant sixth to direct auto-coverage champion Geico, which commands 38 percent of the market of vehicle policies sold online and by phone.

The Esurance deal gives Allstate market share of more than 4 percent in that channel, still lagging Hartford's 5 percent but surpassing Liberty Mutual's 3 percent, according to market share estimates in a company presentation about the deal.