Online insurance firm Esurance may have expanded its market share over the last few years, but
Allstate, which acquired the firm for $1 billion in 2011, has yet to realize a return on its investment.
To cope with continued financial losses, Esurance announced it is cutting 100 jobs, mostly concentrated in three office locations.
Filings by Allstate revealed that the company, which sells home, renters, motorcycle and auto insurance online, recorded $124 million in underwriting losses in 2016.
Local publication
Argus Leader said that the layoffs are expected to minimize Esurance’s operating costs.
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“The changes will ensure we’re structured appropriately with the right resources at the right scale, allowing us to focus on the customer experience and providing modern protection solutions,” it was said in an Esurance statement.
The report also outlined that the firm employed more than 400 customer services representatives in 2015, with more than half working from home.
Esurance was founded in 1999 and uses the direct to consumer (D2C) online model to sell personal insurance lines.
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