AllState has agreed to acquire auto insurer SafeAuto for $270m in cash and approximately $30m in pre-close dividends of some non-insurance assets.
SafeAuto is a non-standard auto insurer focused on providing state-minimum private-passenger auto insurance. It offers coverage options in 28 states of the US.
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Founded in 1993, SafeAuto will be acquired by Allstate’ subsidiary National General.
SafeAuto will add capabilities and distribution to National General’s direct-to-consumer non-standard auto insurance business.
Headquartered in Columbus, Ohio, the acquisition of SafeAuto is expected to widen National General’s product and distribution footprint.
National General president of property and casualty Peter Rendall said: “SafeAuto will accelerate our strategy of offering affordable protection solutions by lowering costs and lead to higher growth”
SafeAuto CEO, Ron Davies said: “The acquisition and integration capabilities of National General, combined with the backing and capital of Allstate, will enable us to serve more customers.”
The deal is expected to close by the end of the third quarter of 2021. It is subject to the receipt of regulatory approvals and satisfaction of customary closing conditions.
SafeAuto co-founder and chairman, Ari Deshe said: “I am confident that combining forces with National General with the backing of Allstate will allow SafeAuto to grow its platform in the non-standard space.”
