The company said its action will allow Allstate to offer a broader array of products and services through independent agents and make it easier for independent agencies to do business with the company.

The changes will become effective Jan. 1, 2005.

"We are going to become the brand of choice for independent agents," said Doug Wendt, president of Encompass Insurance, in a statement. "We want to provide the best service and products for the unique needs of independent agencies and customers."

Allstate said Encompass currently focuses on high-end consumer insurance products, including a package policy that provides coverage for home, auto and personal liability under one plan.

The integration will make possible the development of new products for Encompass agencies to serve middle-market consumers and for Allstate independent agents to have access to Encompass products and services, the carrier said.

Future product offerings, the company said, could also include financial services, workplace, specialty lines or commercial lines products for independent agencies.

The integration should be transparent to current Encompass, Deerbrook and Allstate policyholders, added Allstate. The changes would be primarily internal, part of a strategy to make the organization more focused on local marketing efforts, expanding product portfolios, price competitiveness, and being easy to do business with in the independent agency channel, the company said.

An expanded Encompass will service more than 12,000 independent agencies across the country. Mr. Wendt said the company is planning to grow its presence among independent agent market.

"Positioning our independent channel for future success is part of Allstate's overall strategy to grow both our exclusive and independent agency forces across the country."

Allstate, which distributes its products through exclusive agents, the Internet and direct access, added the independent agency channel in 1974. In 1999, it purchased CNA Personal Insurance, rebranding it under the Encompass Insurance name in 2000.