Nationwide completed its $1.25 bn acquisition of Allstate’s group health segment, positioning itself as a leading provider of employer stop-loss business.
Chief Executive Officer Kirt Walker stated the deal strengthens the mutual’s financial services capabilities, expertise, and partnerships, describing it as a strong fit.
Former Allstate Health Chief Operating Officer Lindsey Murray joined Nationwide to lead a newly established group benefits segment.
Nationwide Financial President and Chief Operating Officer John Carter previously stated that the transaction represents a significant investment in the stop-loss market while complementing existing products and accelerating growth opportunities.
Allstate Corp. Chief Financial Officer Jess Merten said the company expects to record a financial book gain of about $500 mn from the transaction.
Allstate originally acquired its group health business in 2021 as part of its $4 bn National General deal. Earlier this year, Allstate sold its employer benefits business to StanCorp Financial Group Inc. in a $2 bn deal.
Allstate Chair, President, and Chief Executive Officer Tom Wilson stated that the combined proceeds of the two sales, totaling $3.25 bn, reflect the company’s strategic approach to capital management.
He noted that these divestitures position Allstate to concentrate on increasing market share in personal property liability and expanding protection services.
