Slide 1: Investor Call Presentation: Acquisition of Esurance and Answer Financial
The Allstate Corporation – Investor Call Presentation Acquisition of Esurance and Answer Financial May 18, 2011
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in the 2010 Form 10-K, Form 10-Q for the first quarter 2011, and in our most recen
Slide 3: Summary
2 Summary Allstate acquiring Esurance and Answer Financial for ~ $1 billion Furthers Allstate’s strategy of utilizing different value propositions for distinct customer segments Economically attractive due to improved marketing effectiveness and leveraging of Allstate’s pricing and claims capabiliti
Slide 4: Acquisition Summary
Acquisition Summary 3 Maintain current Esurance and Answer Financial brands Businesses to be run independently, with back-office and claims synergies from Allstate Operational Plan Employment agreements to be executed by senior management team Management Transaction Allstate to acquire 100% of Esura
Slide 5: Acquisition of Two Business Platforms
Acquisition of Two Business Platforms Lead Referrals Direct Advertising Customer Acquisition: Online & Call Center Online & Call Center Distribution Model: Self Directed Carrier Choice Self Directed Branded Experience Customer Target: Auto, Property, Motorcycle Auto Products: 425 1,700 Employees: 50
Slide 6: Esurance is a Leading Online Auto Insurer
Estimated Direct Channel Auto Market Share1 Distribution and Marketing 5 Esurance is a Leading Online Auto Insurer Targets technology-savvy consumers who use the Internet to manage their financial service needs Advertises on national television, in select local markets, online through search engines
Slide 7: Enables Allstate To Offer Distinct Value Propositions for All Customer Segments
6 Enables Allstate To Offer Distinct Value Propositions for All Customer Segments Brand Neutral Brand Sensitive Personal Touch Loyalists Self Directed Independent Agencies State Farm Aggregators GEICO Progressive Direct
Slide 8: Allstate Offers Capabilities That Create Significant Value
Allstate Offers Capabilities That Create Significant Value 7 Enhances Brand Allstate brand association improves consumer consideration and increases marketing effectiveness Incremental advertising spend accelerates growth Creates Cross-Sell Opportunities Expands Esurance product portfolio Improves L
Slide 9: Summary
8 Summary Transaction is attractive both strategically and economically Esurance acquisition better positions Allstate to serve the growing Self Directed and Brand Sensitive customer segment Esurance is a strong growth platform Answer Financial serves customers who want a choice of insurance carrier
Slide 10: Allstate
Allstate