Allstate Corp (ALL.N), already the second-largest U.S. auto insurer, said on Wednesday it would expand into online sales by buying Esurance from White Mountains Insurance Group (WTM.N) for about $1 billion. The deal will help Allstate diversify its auto business, which has been shrinking as the company chose profitability over expansion. Premiums written fell 1 percent last quarter, and policies in force declined as fewer customers renewed their coverage. On the other hand, Esurance's gross premiums written and policies in force both rose 6 percent in the first quarter. The company, which calls itself the third-largest online auto insurer, has been advertising aggressively. On a conference call with analysts, Allstate executives said the Esurance business would add a distinct channel to Allstate's operations and appeal to a different kind of customer than the one that uses the company's traditional brokerage force.
The Allstate Corporation (Allstate) is a holding company of Allstate Insurance Company. Shares of ALL fell by 0.48% or $-0.155/share to $32.265. In the past year, the shares have traded as low as $26.86 and as high as $34.40. On average, 4363950 shares of ALL exchange hands on a given day and today's volume is recorded at 726244.
White Mountains Insurance Group, Ltd. is engaged in the businesses of property and casualty insurance and reinsurance, through its subsidiaries and affiliates. Shares of WTM traded higher by 12.62% or $43.37/share to $387.0. In the past year, the shares have traded as low as $294.91 and as high as $381.25. On average, 15300 shares of WTM exchange hands on a given day and today's volume is recorded at 27783.
Source
