Allstate Buys Esurance, Answer Financial for $1 Billion

Home and auto insurer Allstate (ALL) is buying Esurance and Answer Financial from White Mountains Insurance (WTM) for about $1 billion.

Allstate Corp. says the deal will help it tap consumers who prefer certain brands along with consumers who want choices among insurance carriers.

White Mountains Insurance Group Ltd., based in Hanover, N.H., says the sale will increase its book value by $80 per share.

Esurance sells auto insurance directly to customers online and through call centers. Answer Financial is an independent personal insurance agency.

Allstate, based in Northbrook, Ill., has agreed to pay $700 million plus the tangible net value of businesses being acquired. It estimates the total price would be about $1 billion.

White Mountains shares rose $40.31, or 11.7%, to $383.94 in morning trading Wednesday. Allstate shares slipped 11 cents to $32.31.

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Great article, here are several tips from me on how to get cheaper car insurance:
- Use insurance comparison sites like: . Once you register you'll get free quotes from a lot of insurance companies.
- Ask for group discount.Get as many insurances as you need from the same company.
- Always stay insured.If you cancel your plan even for several days, some companies may consider you as high risk and you may need to pay more next time.
- Car Security Devices.Any extra security measures you take to deter thieves from stealing your car will further decrease the risks you pose to the insurance company.
- Good driving records.That will definitely lower your price.

January 12 2012 at 4:31 AM Report abuse rate up rate down Reply