SACRAMENTO, Calif., Feb. 27, 2001 — InsWeb (Nasdaq: INSW) and Allstate Insurance Company today announced they have entered into a two-year services agreement under which Allstate will market its auto, homeowners, renters and condominium insurance products at InsWeb’s online marketplace. Allstate expects to generate customer leads from the millions of online consumers who visit InsWeb annually.
According to the agreement, Allstate availability on InsWeb’s site will be rolled out in phases beginning in Illinois in March. By June, it is expected that Allstate auto insurance products will be available through InsWeb to residents in approximately 15 states, with renters policies marketed in select states. InsWeb said it expects further geographic availability of both offerings, and Allstate plans to introduce homeowners and condominium insurance in early 2002.
Customers who access Allstate through the InsWeb site will also have access to the sales and service capabilities of the Good Handssm Network, which includes approximately 13,000 local Allstate agents, and Customer Insurance Professionals available through 1-800-Allstate and allstate.com. Allstate quotes that result from InsWeb’s site will be sent by Allstate via automated e-mail to consumers. Allstate plans to migrate to providing instant, online quotes and sales on the InsWeb site sometime in 2002.
“Participation by Allstate will further strengthen the value proposition for consumers who compare their insurance options at our online marketplace,” said Hussein Enan, Chief Executive Officer of InsWeb. “Moreover, we believe this agreement complements the Allstate long-term commitment to be widely and readily accessible to consumers at key destinations across the Internet and in the physical world.”
“We’re pleased to enter into this agreement with InsWeb,” says Steve Groot, President of Direct Distribution and e-Commerce. “This agreement represents a potential net gain to Allstate because, for these consumers, the direct channel is their channel of choice. It also supports the Allstate strategy of having multiple points of access available to consumers, making it easy for them to do business with us.”
Additionally, InsWeb said it agreed to issue warrants to Allstate, entitling the personal lines insurer to purchase up to 350,000 shares of InsWeb common stock priced up to $5 per share over the next five years.
About The Allstate Corporation
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through its “You’re In Good Hands With AllstateР’В®” slogan, Allstate provides insurance products to more than 14 million households and has approximately 13,000 exclusive agents in the U.S. and Canada. Customers can access Allstate products and services through Allstate agents, or in select states at allstate.com and 1-800-Allstate. Encompasssm and Deerbrooksm Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group includes the businesses that provide life insurance, retirement and investment products.
InsWeb enables Internet consumers to compare free, multiple quotes sponsored by more than 40 of the nation’s top-rated insurers. Featuring auto, term life, homeowners, renters, condo and other insurance offerings, InsWeb provides live customer service, interactive tools and research capabilities, and is accessible from leading sites, such as Yahoo!, MSN, Quicken.com, E*TRADE and NBCi.com. Headquartered in Sacramento, Calif., InsWeb is accessible at www.insweb.com.
This news release contains forward-looking statements reflecting InsWeb and Allstate managements’ current forecast of certain aspects of the transaction and the companies’ futures. It is based on current information, which has been assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements include statements regarding InsWeb projected future revenues and Allstate projected future leads and sales and optimism about the results of this transaction. The companies’ actual results may differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with the nature of the transaction which include, but are not limited to: the ability to timely integrate the InsWeb and Allstate online operations and continued consumer acceptance of internet based insurance shopping.
In addition, InsWeb’s results may be affected by a variety of other factors including: its ability to timely implement its relocation and restructuring plan; variations in consumer demand or acceptance; the willingness of other insurance companies to offer their products or instant quotes over the Internet; further changes in relationships with existing insurance companies and/or strategic partners; its ability to attract and integrate new insurance companies and strategic partners; implementation of competing Internet strategies by existing and potential insurance company participants; implementation and acceptance of new product or service offerings, such as annuities, binding online, policy fulfillment and other agency based services; implementation and acceptance of new initiatives in the U.S. and abroad, such as InsWeb Japan; insurance and financial services industry regulation; competition in all aspects of the business; fluctuations in operating results; or other unforeseen factors.
The forward-looking statements should be considered in the context of these and other risk factors disclosed by InsWeb and The Allstate Corporation in filings made with the Securities and Exchange Commission.
“INSWEB” is a registered service mark of InsWeb Corporation. “Allstate,” “the Good Hands Network,” “Good Hands,” “You’re In Good Hands With Allstate,” “Encompass Insurance,” “Deerbrook,” “Deerbrook Insurance Company” and “Allstate Financial Group” are registered service marks or service marks of Allstate Insurance Company or its affiliates. All other marks are the property of their respective owners.