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Allstate closes $1bn acquisition of Esurance, Answer Financial

Personal lines insurer The Allstate Corporation has obtained all required regulatory approvals and closed its acquisition of Esurance and Answer Financial from Bermuda-based White Mountains Insurance Group for about $1bn.

Esurance provides personal auto insurance direct to consumers online and through select agents, including sister company Answer Financial.

According to insurer, in the coming months, the Esurance management team will work to enhance its operational and marketing effectiveness by leveraging Allstate’s brand, pricing expertise and claims capabilities.

Allstate said they intend to maintain the current headquarters of Esurance in San Francisco and Answer Financial in Los Angeles. These operations will be reported in the Allstate Protection reporting segment.

Allstate president, chairman and CEO Thomas Wilson said this transaction provides immediate incremental growth in customer relationships and makes Allstate the only company serving all four major consumer segments based on their preferences for advice and choice.

"Esurance provides the business platform to serve the self-directed, brand-sensitive market segment, while Answer Financial strengthens offering to self-directed consumers who want a choice between insurance carriers," Wilson said.