In an attempt to expand its online home-auto sales, on Wednesday, Allstate Corp. (ALL – Analyst Report) announced the acquisition of Ensurance and Answer Financial from White Mountains Insurance Group Ltd. (WTM – Snapshot Report) for approximately 1.0 billion.
The deal was valued at 700 million along with the tangible book value of the entities acquired at the closing date. The total is broadly summed at 1.0 billion. Subject to regulations, the deal is expected to culminate by the third quarter of 2011. The impact of acquisition on earnings is expected to be break-even by the second full year of ownership and accretive after that.
Esurance sells auto insurance directly to online customers and offers auto insurance quotes through call centers. Read full article…
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