Allstate Buy Of Esurance Could Help Progressive, Analyst Says
23.02.55
NU Online Dirt Service, July 1, 11:55 a.m. EDT
Allstate’s plan to acquire online direct insurer Esurance could promote Progressive in part because of an expected cutback in advertising, according to a financial analyst.
In an analyst’s note, Joshua Shanker with Deutsche Bank Securities Inc. says the purchase by Allstate of Esurance is no threat to Progressive, and could prove to be a benefit to the auto insurer.
The reason, he says, is that advertisement spending will forgo as Allstate “retools its expanding multiple brand personalities.”
He notes that Progressive’s “Pep” campaign failed to create multiple identities for the company “and we expect Allstate is two years away from this same conclusion.”
Source: PropertyCasualty360