NORTHBROOK, In poor health., Aug. 13, 2024 – The Allstate Company (NYSE: ALL) introduced that it has signed a definitive settlement to promote its Employer Voluntary Advantages enterprise to StanCorp Monetary Group (The Commonplace) for $2 billion. The sale marks step one in a strategic determination that may allow Allstate’s three well being and advantages companies (Employer Voluntary Advantages, Particular person and Group Well being) to appreciate their full development potential by combining with an entity that provides extra capabilities.
“Allstate is dedicated to offering the absolute best service to our clients,” stated Tom Wilson, Chairman, President and CEO, Allstate Company. “We’re happy to associate with Allstate to ship this thrilling milestone.”
“Allstate’s employer voluntary advantages enterprise will present safety to greater than 3.5 million clients whom Commonplace continues to serve with excellence. The mix of Allstate’s industry-leading product choices, employer relations, gross sales and gifted crew with Commonplace’s group advantages enterprise will present clients with broader safety and higher worth. Allstate brokers will provide clients a wider vary of choices beneath unique five-year distribution agreements. Allstate shareholders may even profit as capital is allotted to develop market share in private property legal responsibility insurance coverage and develop safety choices. Discussions relating to the sale of our particular person and group well being companies proceed and are anticipated to be equally profitable.”
Dan McMillan, President and CEO of The Commonplace:
“We see nice synergies between Allstate’s industry-leading supplemental and voluntary life insurance coverage merchandise and The Commonplace’s office advantages experience. This transaction enhances our choices for purchasers of all sizes. We sit up for welcoming Allstate’s gifted employer voluntary advantages staff to The Commonplace and constructing a mutually useful distribution partnership sooner or later.”
Transaction Overview
Allstate will promote its subsidiaries that present employer voluntary advantages to The Commonplace for $2 billion in money, adjusted for ending steadiness sheet proceeds, topic to customary closing situations and approvals. Within the first half of 2024, these companies had revenues of $535 million, adjusted internet revenue of $45 million and statutory capital and surplus of $255 million.
“The sale is predicted to generate roughly $600 million in beneficial properties and enhance deployable capital by $1.6 billion,” Allstate Chief Monetary Officer Jess Marten stated in an announcement. “Adjusted internet revenue return on fairness might be decreased by roughly 100 foundation factors following the sale, which is predicted to happen within the first half of 2025.”
Traders
Allstate will host a convention name and webcast to debate the transaction on Wednesday, August 14 at 9:00 a.m. Jap Time. The investor webcast may be accessed at: Learn moreReplays might be posted shortly.
Advisor
JP Morgan and Ardea Companions are appearing as monetary advisors to Allstate, and Willkie Farr & Gallagher LLP is serving as authorized advisor. Citi is appearing as unique monetary advisor to The Commonplace, and Debevoise & Plimpton is serving as authorized advisor.
Monetary data, together with essential bulletins, relating to The Allstate Company is posted periodically. Learn more.
About Allstate
The Allstate Company (NYSE: ALL) protects folks towards life’s uncertainties with a variety of insurance coverage protection, together with auto, dwelling, electronics and id theft. Merchandise can be found via an in depth distribution community, together with Allstate brokers, impartial brokers, main retailers, on-line and at workplaces. Allstate is understood for its slogan, “Allstate is your pal.” For extra data, go to www.allstate.com/. Allstate.
About requirements
The Commonplace is a bunch of firms devoted to serving to our clients reside financially affluent and safe lives. Since 1906, we’ve been a number one supplier of economic safety services to employers and people. Our merchandise embrace group and particular person incapacity insurance coverage, group life insurance coverage, unintended loss of life and incapacity insurance coverage, group dental and imaginative and prescient insurance coverage, voluntary and supplemental advantages, absence administration and paid household depart companies, retirement plan services, and particular person annuities. For extra details about The Commonplace, please go to: Standard.com And comply with us LinkedIn.
Commonplace is the advertising and marketing title for StanCorp Monetary Group and its subsidiaries: Commonplace Insurance coverage Firm, New York Commonplace Life Insurance coverage Firm, Commonplace Retirement Providers, StanCorp Mortgage Traders, StanCorp Funding Advisors, StanCorp Actual Property, StanCorp Equities, Anthem Life Insurance coverage Firm and Anthem Life and Incapacity Insurance coverage. firm and Higher Georgia Life Insurance coverage Firm.
Monetary data, together with essential bulletins, relating to The Allstate Company is posted periodically. Learn more.
Ahead-Trying Statements
This press launch incorporates “forward-looking statements” that forecast outcomes primarily based on our estimates, assumptions and plans, that are topic to uncertainties. These statements are topic to the protected harbor provisions of the Personal 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 means of phrases akin to “plans,” “goal,” “expects,” “will,” “ought to,” “anticipates,” “estimates,” “intends,” “believes,” “possible,” “goal” and related phrases. The Firm believes that these statements are primarily based on affordable estimates, assumptions and plans. Nevertheless, if the estimates, assumptions or plans underlying the forward-looking statements show inaccurate or if different dangers or uncertainties come up, precise outcomes could differ materially from these communicated in these forward-looking statements. Components that might trigger precise outcomes to vary materially from these expressed or implied within the forward-looking statements are described in our filings with the Securities and Alternate Fee, together with the “Threat Components” part of our most up-to-date Annual Report on Type 10-Okay. Ahead-looking statements converse solely as of the date they’re made, and the Firm assumes no obligation to replace or revise any forward-looking statements.
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