NORTHBROOK, Ill., Aug. 13, 2024 – The Allstate Corporation (NYSE: ALL) announced that it has signed a definitive agreement to sell its Employer Voluntary Benefits business to StanCorp Financial Group (The Standard) for $2 billion. The sale marks the first step in a strategic decision that will enable Allstate’s three health and benefits businesses (Employer Voluntary Benefits, Individual and Group Health) to realize their full growth potential by combining with an entity that offers additional capabilities.
“Allstate is committed to providing the best possible service to our customers,” said Tom Wilson, Chairman, President and CEO, Allstate Corporation. “We are pleased to partner with Allstate to deliver this exciting milestone.”
“Allstate’s employer voluntary benefits business will provide protection to more than 3.5 million customers whom Standard continues to serve with excellence. The combination of Allstate’s industry-leading product offerings, employer relations, sales and talented team with Standard’s group benefits business will provide customers with broader protection and greater value. Allstate agents will offer customers a wider range of options under exclusive five-year distribution agreements. Allstate shareholders will also benefit as capital is allocated to grow market share in personal property liability insurance and expand protection offerings. Discussions regarding the sale of our individual and group health businesses continue and are expected to be similarly successful.”
Dan McMillan, President and CEO of The Standard:
“We see great synergies between Allstate’s industry-leading supplemental and voluntary life insurance products and The Standard’s workplace benefits expertise. This transaction enhances our offerings for clients of all sizes. We look forward to welcoming Allstate’s talented employer voluntary benefits employees to The Standard and building a mutually beneficial distribution partnership in the future.”
Transaction Overview
Allstate will sell its subsidiaries that provide employer voluntary benefits to The Standard for $2 billion in cash, adjusted for ending balance sheet proceeds, subject to customary closing conditions and approvals. In the first half of 2024, these businesses had revenues of $535 million, adjusted net income of $45 million and statutory capital and surplus of $255 million.
“The sale is expected to generate approximately $600 million in gains and increase deployable capital by $1.6 billion,” Allstate Chief Financial Officer Jess Marten said in a statement. “Adjusted net income return on equity will be reduced by approximately 100 basis points following the sale, which is expected to occur in the first half of 2025.”
Investors
Allstate will host a conference call and webcast to discuss the transaction on Wednesday, August 14 at 9:00 a.m. Eastern Time. The investor webcast can be accessed at: Learn moreReplays will be posted shortly.
Advisor
JP Morgan and Ardea Partners are acting as financial advisors to Allstate, and Willkie Farr & Gallagher LLP is serving as legal advisor. Citi is acting as exclusive financial advisor to The Standard, and Debevoise & Plimpton is serving as legal advisor.
Financial information, including important announcements, regarding The Allstate Corporation is posted periodically. Learn more.
About Allstate
The Allstate Corporation (NYSE: ALL) protects people against life’s uncertainties with a wide range of insurance coverage, including auto, home, electronics and identity theft. Products are available through an extensive distribution network, including Allstate agents, independent agents, major retailers, online and at workplaces. Allstate is known for its slogan, “Allstate is your friend.” For more information, visit www.allstate.com/. Allstate.
About standards
The Standard is a group of companies dedicated to helping our customers live financially prosperous and secure lives. Since 1906, we have been a leading provider of financial protection products and services to employers and individuals. Our products include group and individual disability insurance, group life insurance, accidental death and disability insurance, group dental and vision insurance, voluntary and supplemental benefits, absence management and paid family leave services, retirement plan products and services, and individual annuities. For more information about The Standard, please visit: Standard.com And follow us LinkedIn.
Standard is the marketing name for StanCorp Financial Group and its subsidiaries: Standard Insurance Company, New York Standard Life Insurance Company, Standard Retirement Services, StanCorp Mortgage Investors, StanCorp Investment Advisors, StanCorp Real Estate, StanCorp Equities, Anthem Life Insurance Company and Anthem Life and Disability Insurance. company and Greater Georgia Life Insurance Company.
Financial information, including important announcements, regarding The Allstate Corporation is posted periodically. Learn more.
Forward-Looking Statements
This press release contains “forward-looking statements” that forecast results based on our estimates, assumptions and plans, which are subject to uncertainties. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by the use of words such as “plans,” “aim,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “target” and similar words. The Company believes that these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results may differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are described in our filings with the Securities and Exchange Commission, including the “Risk Factors” section of our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company assumes no obligation to update or revise any forward-looking statements.
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