The Allstate Corporation recently made a significant announcement regarding the sale of its Employer Voluntary Benefits business to StanCorp Financial Group, Inc., more commonly known as The Standard. This strategic decision, worth $2.0 billion, marks the beginning of a journey to unlock the full potential growth of Allstate Health & Benefits businesses by merging them with companies with complementary capabilities.
Tom Wilson, the Chair, President, and CEO of The Allstate Corporation, emphasized the positive impact this move will have on customers, stating that over 3.5 million customers will benefit from enhanced protection and value as a result of this alignment. The sale will also lead to expanded options for customers through an exclusive distribution arrangement with Allstate agents, ultimately benefiting shareholders by increasing market share in personal property-liability and expanding protection offerings.
Dan McMillan, President, and CEO of The Standard, expressed excitement about the synergies between the two companies and the enhanced suite of offerings for customers of all sizes. The transaction signals a new chapter of growth and innovation, as well as the opportunity to collaborate with the talented Allstate Employer Voluntary Benefits employees.
Key Points:
Transaction Summary:
– The sale includes employer voluntary benefits subsidiaries for $2.0 billion in cash.
– Business revenues for the first half of 2024 were $535 million, with Adjusted Net Income of $45 million.
– The sale is expected to generate a gain of about $600 million and increase deployable capital by $1.6 billion.
Investors:
– A conference call and webcast will be held on Aug. 14 to discuss the transaction.
– Investors can access the webcast at www.allstateinvestors.com.
Advisers:
– J.P. Morgan, Ardea Partners, Citi, and Debevoise & Plimpton are acting as financial and legal advisors respectively.
The Allstate Corporation:
– Protects individuals from uncertainties with a range of protection products.
– Offers products through a broad distribution network, including Allstate agents, independent agents, and major retailers.
The Standard:
– A family of companies dedicated to helping customers achieve financial well-being.
– Offers a wide array of financial protection products and services for employers and individuals.
In conclusion, the sale of the Employer Voluntary Benefits business reinforces Allstate’s commitment to serving customers effectively and creating value for shareholders. The strategic decision to merge with The Standard sets the stage for future growth and innovation in the health and benefits sector. Stay tuned for more updates on this exciting development in the financial services industry.
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