Allstate Buys Esurance for $1 Billion Dollars
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Jan 5, 2024
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UPDATED: Jan 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Allstate and Esurance are not the same company
- With the purchase of Esurance, Allstate added another 2.2 million policyholders
- Esurance provides insurance solely online while Allstate combines an army of licensed agents across the nation
The auto insurance industry has been one of the most successful examples of how the internet has changed consumer’s behavior to shop for financial products.
On May 18th, 2011 Allstate announced they would pay almost $1 billion for Esurance with $700 million cash as part of the deal.
Allstate is well known for its auto insurance products servicing all 50 states and holding a market share of almost 11 percent but with the purchase of Esurance they add another 2.2 million policyholders to the Allstate family.
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How are Allstate and Esurance different?
In many ways, Allstate and Esurance are different companies.
Esurance provides insurance solely online while Allstate combines an army of licensed agents across the nation with online account handling, servicing, and sales.
However, as it is 2011 and more and more consumers search for financial products online this seems to be a natural fit.
Not only will Allstate gain from the stellar reputation and customer base Esurance has built on for the last 12 years but they also manage to gain a large share of the car insurance lead generation marketplace online.
Last year Quinstreet spent almost $150 million buying up established websites such as CarInsurance.com and these acquisitions did not come with 2.2 million policyholders so even at a $1 billion purchase price this is more than fair.
Allstate has secured another piece of the online market that State Farm, Nationwide or any other car insurance company will never get at this price.
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Will there be more acquisitions in the future?
We predict that 2011 and 2012 will unfold many more insurance acquisitions as both lead generation and the market share of consumers who prefer to deal online has reached a point worthy of recognition by Wall Street and Allstate has just started the horserace.
We assume Esurance has brand value far too valuable to discard but it will be interesting to see over time whether or not the focus is to build the brand or simply maneuver policyholders to the Allstate name.
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Secured with SHA-256 Encryption
Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.