NORTHBROOK, In poor health., Jan. 30, 2025 – The Allstate Company (NYSE: ALL) introduced a definitive settlement to promote its Group Well being enterprise to Nationwide for $1.25 billion in money, adjusted for the closing steadiness sheet, and topic to straightforward closing circumstances together with regulatory approvals. For the primary 9 months of 2024, Group Well being had revenues of $608 million and Adjusted Web Revenue of $69 million.
“We reached one other milestone within the technique to maximise shareholder worth by combining the Well being & Advantages companies with corporations which have higher strategic alignment,” mentioned Tom Wilson, Allstate’s Chair, President and CEO. “Group Well being supplies stop-loss insurance coverage to small companies, which can achieve entry to Nationwide’s complementary product choices. When mixed with the beforehand introduced sale of Employer Voluntary Advantages to StanCorp Monetary Group, Inc., (The Normal), whole sale proceeds shall be $3.25 billion. The Particular person Well being enterprise, with Adjusted Web Revenue of $18 million for the primary 9 months of 2024, will both be retained or mixed with one other firm.”
“Nationwide is extraordinarily nicely capitalized and this transaction advances its development technique by increasing its product portfolio and distribution capabilities,” mentioned Jess Merten, Allstate’s Chief Monetary Officer. “Allstate acquired the Group Well being enterprise in 2021 as a part of the $4.0 billion acquisition of Nationwide Normal. The sale is predicted to generate a monetary ebook achieve of about $450 million, enhance deployable capital by $0.9 billion however scale back adjusted web revenue return on fairness by 75 foundation factors after closing, which is predicted in 2025.”
J.P. Morgan and Ardea Companions are appearing as monetary advisors and Willkie Farr & Gallagher LLP is appearing as authorized advisor to Allstate. Citi is appearing as monetary advisor and Squire Patton Boggs LLP is appearing as authorized advisor to Nationwide.
About Allstate
The Allstate Company (NYSE: ALL) protects folks from life’s uncertainties with a wide selection of safety for autos, houses, 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 extensively identified for the slogan “You’re in Good Arms with Allstate.” For extra info, go to www.allstate.com.
About Nationwide
Nationwide, a Fortune 100 firm based mostly in Columbus, Ohio, is among the largest and strongest diversified insurance coverage and monetary providers organizations in the USA. Nationwide is rated A+ by Normal & Poor’s. An business chief in driving customer-focused innovation, Nationwide supplies a full vary of insurance coverage and monetary providers merchandise together with auto, enterprise, householders, farm and life insurance coverage; private and non-private sector retirement plans, annuities and mutual funds; extra & surplus, specialty and surety; and pet, motorbike and boat insurance coverage.
Ahead-looking statements
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