Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of property and casualty insurer White Mountains Insurance
So what: Insurance giant Allstate
Now what: From White Mountains' perspective, the transaction may be pretty smart. While Esurance is a valuable asset, White Mountains investors may be getting a more fully realized price for it through the sale. In its press release, the company said it expects its adjusted per-share book value will increase by $80 thanks to the deal. In addition, the vanilla-policy, consumer-facing style of Esurance and Answer Financial are fairly different from White Mountains' primary insurance businesses, so the company may see this as a way to focus on its core competencies.
Want to keep up to date on these companies?