Sentry Insurance announced its agreement to acquire The General from American Family Insurance for $1.7 bn.
The deal includes $1.1bn in cash, plus assumed liabilities and required capital. It is expected to close by the end of the year, pending regulatory approvals.
This acquisition marks the largest in Sentry’s 120-year history, according to CEO Pete McPartland. He noted that, alongside Sentry’s Dairyland brand, the acquisition will enhance their ability to serve specialized driver needs. He also stated that the deal brings together two strong brands in the nonstandard auto industry.
Together, Dairyland and The General will be better able to meet the specialized needs of even more drivers across the country. It’s an exciting step forward for both companies, and I’m proud of the work our team has done to make this possible.
CEO Pete McPartland
American Family acquired The General in 2012. While The General focuses on direct nonstandard auto coverage, Dairyland sells through independent agents. Sentry, primarily a business insurer, also offers nonstandard auto, motorcycle, and off-road vehicle coverage through Dairyland.
The General will remain headquartered in Nashville and operate independently during the integration. About 1,300 General employees will join Sentry’s 5,000-member workforce by early 2025.
American Family CEO Bill Westrate highlighted The General’s fivefold revenue growth since its acquisition and consistent profitability.
As part of our enterprise, The General has grown its revenue more than fivefold, driven consistently profitable business, entered into new states while remaining dedicated and passionate about the customers and the market it serves
Bill Westrate, Chair and CEO of American Family Insurance
“We’ve found a strategic and cultural fit in Sentry, where the growth and momentum that The General has will continue. We’re confident that Sentry’s expertise, strong reputation in this market and employment culture will not only continue to serve The General’s customers well but will also ease the transition for The General’s employees.”
- Established Brands: Both The General and Dairyland have served NSA customers for more than 60 years. The General, headquartered in Nashville and acquired by American Family in 2012, has served the market since 1963. Dairyland, based in Middleton, Wis., was founded in 1953 and acquired by Sentry in 1966.
- Strategic Fit: The General is known for its direct-to-consumer NSA insurance, while Dairyland serves customers through its independent agent network. For customers, this means flexibility in choosing how they purchase insurance—whether through an agent or directly—with a seamless experience from claims to customer service.
- Parallel Operations: Both brands will continue to operate independently as Sentry and The General work through the integration process.
- Growth and Stability: Approximately 1,300 employees from The General will join Sentry’s 5,000-strong workforce on January 1, 2025. They will continue to be headquartered in Nashville.
American Family recently announced that its Main Street America Insurance unit will exit personal lines to focus more on commercial business, aiming to bring new products and services to market faster.
Sentry was advised on legal matters by Sidley Austin LLP, with J.P. Morgan acting as financial advisor. American Family was advised on legal matters by Foley and Lardner LLP with Goldman Sachs & Co. LLC acting as financial advisor.
