NORTHBROOK, Sick., Aug. 13, 2024 – The Allstate Company (NYSE: ALL) introduced a definitive settlement to promote the Employer Voluntary Advantages enterprise to StanCorp Monetary Group, Inc., (The Commonplace) for $2.0 billion. The sale represents step one within the strategic choice to allow the three Allstate Well being & Advantages companies – Employer Voluntary Advantages, Particular person and Group Well being – to comprehend their full development potential by combining them with firms which have further capabilities.
Tom Wilson, Chair, President and CEO of The Allstate Company:
“Allstate’s Employer Voluntary Advantages enterprise offers safety to over 3.5 million clients who will proceed to be properly served by The Commonplace. The alignment between Allstate’s industry-leading product choices, employer relationships, distribution and proficient staff and The Commonplace’s group advantages enterprise will present clients with broader safety and better worth. Allstate brokers will now supply a broader array of choices to clients beneath a five-year unique distribution association. Allstate shareholders may also profit as capital is deployed to extend market share in private property-liability and develop safety choices. Discussions on the sale of the Particular person and Group Well being companies are persevering with and are anticipated to realize the identical success.”
Dan McMillan, President and CEO of The Commonplace:
“We see important synergies between Allstate’s industry-leading supplemental and voluntary life merchandise and The Commonplace’s experience in office advantages. This transaction enhances our suite of choices for patrons of all sizes. We look ahead to welcoming the proficient Allstate Employer Voluntary Advantages workers to The Commonplace and to a mutually useful distribution partnership as we transfer ahead.”
Transaction abstract
Allstate will promote its subsidiaries that present employer voluntary advantages to The Commonplace for $2.0 billion in money, adjusted for the closing steadiness sheet, and topic to customary closing situations and approvals. For the primary half of 2024, these companies had revenues of $535 million, Adjusted Web Earnings of $45 million, and statutory capital and surplus of $255 million.
“The sale is predicted to generate a acquire of about $600 million and improve deployable capital by $1.6 billion,” mentioned Jess Merten, Allstate Chief Monetary Officer. “Adjusted web earnings return on fairness will decline by about 100 foundation factors following the sale, which is predicted within the first half of 2025.”
Traders
Allstate will host a convention name and webcast at 9 a.m. Jap on Wednesday, Aug. 14 to debate the transaction. The investor webcast may be accessed at www.allstateinvestors.com. A replay will probably be posted shortly after.
Advisers
J.P. Morgan and Ardea Companions are performing as monetary advisors and Willkie Farr & Gallagher LLP is performing as authorized advisor to Allstate. Citi is performing as unique monetary advisor and Debevoise & Plimpton is performing as authorized advisor to The Commonplace.
Monetary info, together with materials bulletins about The Allstate Company, is routinely posted on www.allstateinvestors.com.
About Allstate
The Allstate Company (NYSE: ALL) protects individuals from life’s uncertainties with a wide selection of safety for autos, properties, digital units, and id theft. Merchandise can be found by way of a broad distribution community together with Allstate brokers, unbiased brokers, main retailers, on-line, and on the office. Allstate is broadly recognized for the slogan “You’re in Good Fingers with Allstate.” For extra info, go to www.allstate.com.
About The Commonplace
The Commonplace is a household of firms devoted to serving to clients obtain monetary well-being and peace of thoughts. In enterprise since 1906, we’re a number one supplier of economic safety services and products for employers and people. Our merchandise embody group and particular person incapacity insurance coverage, group life and unintended demise and dismemberment insurance coverage, group dental and group imaginative and prescient insurance coverage, voluntary and supplemental advantages, absence administration and paid household go away providers, retirement plans services and products and particular person annuities. For extra details about The Commonplace, go to standard.com and comply with us on LinkedIn.
The Commonplace is the advertising title for StanCorp Monetary Group, Inc., and its subsidiaries: Commonplace Insurance coverage Firm, The Commonplace Life Insurance coverage Firm of New York, Commonplace Retirement Companies, StanCorp Mortgage Traders, StanCorp Funding Advisers, StanCorp Actual Property, StanCorp Equities, Anthem Life Insurance coverage Firm, Anthem Life & Incapacity Insurance coverage Firm and Higher Georgia Life Insurance coverage Firm.
Monetary info, together with materials bulletins about The Allstate Company, is routinely posted on www.allstateinvestors.com.
Ahead-looking statements
This information launch incorporates “forward-looking statements” that anticipate outcomes based mostly on our estimates, assumptions and plans which can be topic to uncertainty. These statements are made topic to the safe-harbor provisions of the Personal Securities Litigation Reform Act of 1995. These forward-looking statements don’t relate strictly to historic or present details and could also be recognized by their use of phrases like “plans,” “seeks,” “expects,” “will,” “ought to,” “anticipates,” “estimates,” “intends,” “believes,” “seemingly,” “targets” and different phrases with comparable meanings. We imagine these statements are based mostly on cheap estimates, assumptions, and plans. Nonetheless, if the estimates, assumptions, or plans underlying the forward-looking statements show inaccurate or if different dangers or uncertainties come up, precise outcomes may differ materially from these communicated in these forward-looking statements. Components that would trigger precise outcomes to vary materially from these expressed in, or implied by, the forward-looking statements could also be present in our filings with the U.S. Securities and Change Fee, together with the “Danger Components” part in our most up-to-date annual report on Kind 10-Ok. Ahead-looking statements are as of the date on which they’re made, and we assume no obligation to replace or revise any forward-looking assertion.
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