Allstate Completes Strategic Sale of Employer Voluntary Benefits Business

0

BEĞENDİM

ABONE OL

News

0

Allstate Finalizes Sale to The Standard for $2 Billion

Allstate has successfully concluded the sale of its Employer Voluntary Benefits division to StanCorp Financial Group, Inc., commonly known as The Standard, for a substantial sum of $2 billion. This strategic move, alongside the previously announced agreement to divest the Group Health business, is projected to generate a combined total of $3.25 billion by 2025.

In a forward-looking step, Allstate entered into a definitive agreement in January 2025 to sell its Group Health segment to Nationwide for $1.25 billion in cash. This transaction is still subject to the usual closing conditions, including necessary regulatory approvals. The sale marks the initial phase in empowering Allstate’s three Health & Benefits sectors—Employer Voluntary Benefits, Individual Health, and Group Health—to reach their full growth potential by aligning with organizations that offer complementary strengths.

Tom Wilson, Chair, President, and CEO of The Allstate Corporation, remarked, “The divestiture of the Employer Voluntary Benefits business enhances the growth prospects of a highly successful enterprise, thereby creating additional value for Allstate’s shareholders. This transaction, coupled with the agreement to divest the Group Health business, is anticipated to produce a combined revenue of $3.25 billion by 2025. Allstate is optimally positioned to execute our strategy to increase personal property-liability market share and broaden our protection services.”

Jess Merten, Chief Financial Officer at Allstate, added, “The sale of the Employer Voluntary Benefits segment resulted in a financial book gain of approximately $625 million. The proceeds from this transaction will support our disciplined capital management strategy, including the recently announced share repurchase program.”