NORTHBROOK, Ailing., 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 stability sheet, and topic to plain closing situations together with regulatory approvals. For the primary 9 months of 2024, Group Well being had revenues of $608 million and Adjusted Internet Earnings 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 larger strategic alignment,” stated Tom Wilson, Allstate’s Chair, President and CEO. “Group Well being supplies stop-loss insurance coverage to small companies, which can acquire entry to Nationwide’s complementary product choices. When mixed with the beforehand introduced sale of Employer Voluntary Advantages to StanCorp Monetary Group, Inc., (The Commonplace), whole sale proceeds might be $3.25 billion. The Particular person Well being enterprise, with Adjusted Internet Earnings of $18 million for the primary 9 months of 2024, will both be retained or mixed with one other firm.”
“Nationwide is extraordinarily properly capitalized and this transaction advances its development technique by increasing its product portfolio and distribution capabilities,” stated 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 Common. The sale is anticipated to generate a monetary ebook acquire of about $450 million, improve deployable capital by $0.9 billion however scale back adjusted internet earnings return on fairness by 75 foundation factors after closing, which is anticipated in 2025.”
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 monetary advisor and Squire Patton Boggs LLP is performing as authorized advisor to Nationwide.
About Allstate
The Allstate Company (NYSE: ALL) protects individuals from life’s uncertainties with a big selection of safety for autos, houses, digital gadgets, and identification 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 identified for the slogan “You’re in Good Fingers with Allstate.” For extra info, go to www.allstate.com.
About Nationwide
Nationwide, a Fortune 100 firm primarily based in Columbus, Ohio, is without doubt one of the largest and strongest diversified insurance coverage and monetary providers organizations in the USA. Nationwide is rated A+ by Commonplace & 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, bike and boat insurance coverage.
Ahead-looking statements
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