“So we kind of box them in,” he continues.

Wilson says Esurance saw a 36 percent increase in policies to 1.2 policies-in-force during the first half of the year, and its net written premium increased 31 percent after eclipsing $1 billion in NWP in 2012.

The unit's combined ratio remains elevated due to investments in growth, such as ad spending.

Wilson gave some insight into Allstate's other business. He thought about getting out of the homeowners insurance business following the destructive 2005 hurricane season but chose not to because customers prefer to bundle coverage. Therefore, getting out of homeowners would negatively affect Allstate's auto business.

Allstate instead looked to use reinsurance more effectively, raise rates, improve underwriting and exit some high-risk markets.

“The net result of what we did has been to reduce the size of the business, lower our risk and substantially improve results,” Wilson tells investors.

Allstate over the last two years took controversial steps with its agency force—encouraging larger agencies and changing performance standards and compensation.

Wilson says agencies are “bigger and more profitable” and they are “investing in their business and growing again.”

ALSO READ: McKinsey to Agents: Adapt or Find Another Line of Work