NORTHBROOK, Unwell., 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 Customary) for $2.0 billion. The sale represents step one within the strategic resolution to allow the three Allstate Well being & Advantages companies – Employer Voluntary Advantages, Particular person and Group Well being – to appreciate their full progress potential by combining them with corporations which have further capabilities.
Tom Wilson, Chair, President and CEO of The Allstate Company:
“Allstate’s Employer Voluntary Advantages enterprise supplies safety to over 3.5 million clients who will proceed to be nicely served by The Customary. The alignment between Allstate’s industry-leading product choices, employer relationships, distribution and gifted group and The Customary’s group advantages enterprise will present clients with broader safety and better worth. Allstate brokers will now provide a broader array of choices to clients underneath a five-year unique distribution association. Allstate shareholders may even 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 attain the identical success.”
Dan McMillan, President and CEO of The Customary:
“We see vital synergies between Allstate’s industry-leading supplemental and voluntary life merchandise and The Customary’s experience in office advantages. This transaction enhances our suite of choices for purchasers of all sizes. We sit up for welcoming the gifted Allstate Employer Voluntary Advantages workers to The Customary 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 Customary 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 Internet Earnings of $45 million, and statutory capital and surplus of $255 million.
“The sale is predicted to generate a achieve of about $600 million and enhance deployable capital by $1.6 billion,” stated Jess Merten, Allstate Chief Monetary Officer. “Adjusted internet revenue return on fairness will decline by about 100 foundation factors following the sale, which is predicted within the first half of 2025.”
Buyers
Allstate will host a convention name and webcast at 9 a.m. Japanese on Wednesday, Aug. 14 to debate the transaction. The investor webcast will be accessed at www.allstateinvestors.com. A replay can 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 Customary.
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 folks from life’s uncertainties with a big selection of safety for autos, properties, digital gadgets, and id theft. Merchandise can be found by means 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 Customary
The Customary is a household of corporations 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 for employers and people. Our merchandise embody group and particular person incapacity insurance coverage, group life and unintended loss of life and dismemberment insurance coverage, group dental and group imaginative and prescient insurance coverage, voluntary and supplemental advantages, absence administration and paid household go away companies, retirement plans services and particular person annuities. For extra details about The Customary, go to customary.com and observe us on LinkedIn.
The Customary is the advertising identify for StanCorp Monetary Group, Inc., and its subsidiaries: Customary Insurance coverage Firm, The Customary Life Insurance coverage Firm of New York, Customary Retirement Providers, StanCorp Mortgage Buyers, StanCorp Funding Advisers, StanCorp Actual Property, StanCorp Equities, Anthem Life Insurance coverage Firm, Anthem Life & Incapacity Insurance coverage Firm and Better 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 are topic to uncertainty. These statements are made topic to the safe-harbor provisions of the Non-public Securities Litigation Reform Act of 1995. These forward-looking statements don’t relate strictly to historic or present information and could also be recognized by their use of phrases like “plans,” “seeks,” “expects,” “will,” “ought to,” “anticipates,” “estimates,” “intends,” “believes,” “probably,” “targets” and different phrases with related 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 Trade 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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