Allstate Sells Employer Voluntary Benefits to The Standard for $2 Billion
Deal News | Apr 02, 2025 | Re-Insurance News
Allstate has finalized the sale of its Employer Voluntary Benefits business to StanCorp Financial Group, Inc. (The Standard) for $2 billion. This sale, along with a separate deal to sell Allstate's Group Health business to Nationwide for $1.25 billion, is expected to yield $3.25 billion in combined proceeds by 2025. The decision to divest these health and benefits components marks Allstate's strategy to enhance the growth potential of these businesses by aligning them with companies that have greater capabilities in these areas. Allstate's CEO, Tom Wilson, highlighted the sale as an opportunity to create additional value for shareholders and focus more intensely on its core property-liability and protection services markets. The CFO, Jess Merten, noted that the sale resulted in a $625 million financial book gain and supports Allstate's capital management initiatives, including a planned share repurchase program.
Sectors
- Insurance
- Healthcare Benefits
- Financial Services
Geography
- United States – The article involves Allstate, a U.S.-based insurance company, and the transaction is primarily within the U.S. legal and business environment.
Industry
- Insurance – The article discusses the sale of an insurance-related business unit by Allstate, a primary insurance company.
- Healthcare Benefits – The business units being divested include Employer Voluntary Benefits and Group Health, both of which are related to healthcare benefits.
- Financial Services – The acquisition by The Standard and the associated financial transactions are part of the broader financial services industry.
Financials
- $2 billion – The sale price for the Employer Voluntary Benefits business to The Standard.
- $1.25 billion – The agreed sale price for the Group Health business to Nationwide.
- $625 million – The financial book gain realized from the sale of the Employer Voluntary Benefits business.
- $3.25 billion – Combined proceeds expected from the sales of Employer Voluntary Benefits and Group Health businesses by 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Allstate | Selling Company | Company | A major U.S. primary insurance company, Allstate is divesting parts of its health and benefits businesses. |
| StanCorp Financial Group, Inc. (The Standard) | Bidding Company | Company | The acquirer of Allstate's Employer Voluntary Benefits business, specializing in financial services. |
| Nationwide | Bidding Company | Company | Agreed to acquire Allstate's Group Health business, enhancing its capabilities in the health benefits sector. |
| Tom Wilson | Chair, President and CEO | Person | Executive overseeing Allstate’s strategic initiatives, including the divestment articulated in the article. |
| Jess Merten | Chief Financial Officer | Person | Responsible for Allstate's financial management, commenting on the financial implications of the transaction. |