NORTHBROOK, Ailing., Aug. 13, 2024 – The Allstate Company (NYSE: ALL) introduced a definitive settlement to promote the Employer Voluntary Advantages enterprise to StanCorp Monetary Group, Inc., (The Commonplace) for $2.0 billion. The sale represents step one within the strategic choice to allow the three Allstate Well being & Advantages companies – Employer Voluntary Advantages, Particular person and Group Well being – to understand their full progress potential by combining them with corporations which have further capabilities.
Tom Wilson, Chair, President and CEO of The Allstate Company:
“Allstate’s Employer Voluntary Advantages enterprise offers safety to over 3.5 million prospects who will proceed to be effectively served by The Commonplace. The alignment between Allstate’s industry-leading product choices, employer relationships, distribution and gifted workforce and The Commonplace’s group advantages enterprise will present prospects with broader safety and better worth. Allstate brokers will now supply a broader array of choices to prospects beneath a five-year unique distribution association. Allstate shareholders will even profit as capital is deployed to extend market share in private property-liability and broaden safety choices. Discussions on the sale of the Particular person and Group Well being companies are persevering with and are anticipated to attain the identical success.”
Dan McMillan, President and CEO of The Commonplace:
“We see vital synergies between Allstate’s industry-leading supplemental and voluntary life merchandise and The Commonplace’s experience in office advantages. This transaction enhances our suite of choices for patrons of all sizes. We stay up for welcoming the gifted Allstate Employer Voluntary Advantages staff to The Commonplace and to a mutually helpful distribution partnership as we transfer ahead.”
Transaction abstract
Allstate will promote its subsidiaries that present employer voluntary advantages to The Commonplace for $2.0 billion in money, adjusted for the closing steadiness sheet, and topic to customary closing circumstances and approvals. For the primary half of 2024, these companies had revenues of $535 million, Adjusted Web Earnings of $45 million, and statutory capital and surplus of $255 million.
“The sale is predicted to generate a acquire of about $600 million and enhance deployable capital by $1.6 billion,” mentioned Jess Merten, Allstate Chief Monetary Officer. “Adjusted web earnings return on fairness will decline by about 100 foundation factors following the sale, which is predicted within the first half of 2025.”
Traders
Allstate will host a convention name and webcast at 9 a.m. Japanese on Wednesday, Aug. 14 to debate the transaction. The investor webcast will be accessed at www.allstateinvestors.com. A replay shall be posted shortly after.
Advisers
J.P. Morgan and Ardea Companions are appearing as monetary advisors and Willkie Farr & Gallagher LLP is appearing as authorized advisor to Allstate. Citi is appearing as unique monetary advisor and Debevoise & Plimpton is appearing as authorized advisor to The Commonplace.
Monetary info, together with materials bulletins about The Allstate Company, is routinely posted on www.allstateinvestors.com.
About Allstate
The Allstate Company (NYSE: ALL) protects folks from life’s uncertainties with a big selection of safety for autos, properties, digital gadgets, and identification theft. Merchandise can be found by a broad distribution community together with Allstate brokers, unbiased brokers, main retailers, on-line, and on the office. Allstate is broadly recognized for the slogan “You’re in Good Palms with Allstate.” For extra info, go to www.allstate.com.
About The Commonplace
The Commonplace is a household of corporations devoted to serving to prospects obtain monetary well-being and peace of thoughts. In enterprise since 1906, we’re a number one supplier of monetary safety services for employers and people. Our merchandise embody group and particular person incapacity insurance coverage, group life and unintended loss of life and dismemberment insurance coverage, group dental and group imaginative and prescient insurance coverage, voluntary and supplemental advantages, absence administration and paid household go away companies, retirement plans services and particular person annuities. For extra details about The Commonplace, go to customary.com and observe us on LinkedIn.
The Commonplace is the advertising identify for StanCorp Monetary Group, Inc., and its subsidiaries: Commonplace Insurance coverage Firm, The Commonplace Life Insurance coverage Firm of New York, Commonplace Retirement Providers, StanCorp Mortgage Traders, StanCorp Funding Advisers, StanCorp Actual Property, StanCorp Equities, Anthem Life Insurance coverage Firm, Anthem Life & Incapacity Insurance coverage Firm and Better Georgia Life Insurance coverage Firm.
Monetary info, together with materials bulletins about The Allstate Company, is routinely posted on www.allstateinvestors.com.
Ahead-looking statements
This information launch accommodates “forward-looking statements” that anticipate outcomes primarily based on our estimates, assumptions and plans which might be topic to uncertainty. These statements are made topic to the safe-harbor provisions of the Personal Securities Litigation Reform Act of 1995. These forward-looking statements don’t relate strictly to historic or present details and could also be recognized by their use of phrases like “plans,” “seeks,” “expects,” “will,” “ought to,” “anticipates,” “estimates,” “intends,” “believes,” “probably,” “targets” and different phrases with comparable meanings. We consider these statements are primarily based on cheap estimates, assumptions, and plans. Nonetheless, if the estimates, assumptions, or plans underlying the forward-looking statements show inaccurate or if different dangers or uncertainties come up, precise outcomes might differ materially from these communicated in these forward-looking statements. Components that would trigger precise outcomes to vary materially from these expressed in, or implied by, the forward-looking statements could also be present in our filings with the U.S. Securities and Change Fee, together with the “Danger Components” part in our most up-to-date annual report on Kind 10-Okay. Ahead-looking statements are as of the date on which they’re made, and we assume no obligation to replace or revise any forward-looking assertion.
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