Sentry Insurance has unveiled its plan to acquire The General from American Family Insurance by paying nearly $1.1bn in cash.
The total transaction value, with the addition of the value of assumed liabilities and required capital, will amount to $1.7bn.
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This acquisition is set to expand Sentry’s reach in the non-standard auto insurance market.
Sentry, a mutual insurance company, is known for its business insurance expertise.
Through its Dairyland brand, the company also offers coverage for non-standard auto, motorcycle and off-road vehicles.
Non-standard auto insurance caters to drivers who have difficulties obtaining standard auto coverage.
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By GlobalDataSentry highlighted that both The General and Dairyland have been serving non-standard auto insurance customers for more than six decades.
The General, based in Nashville and acquired by American Family in 2012, has been in the market since 1963.
Meanwhile, Dairyland, established in 1953 and acquired by Sentry in 1966, is based in Middleton, Wisconsin.
Sentry emphasised that the acquisition is a strategic fit, as The General is known for direct-to-consumer, non-standard auto insurance, while Dairyland is recognised for serving customers through its independent agent network.
Both brands will continue to operate independently as Sentry and The General work through the integration process.
Around 1,300 employees from The General will move to Sentry on 1 January 2025, strengthening the latter’s current headcount of 5,000, and will remain based in Nashville.
Sentry chairman and CEO Pete McPartland said: “This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the non-standard auto industry. Together, Dairyland and The General will be better able to meet the specialised needs of even more drivers across the country. It is an exciting step forward for both companies, and I am proud of the work our team has done to make this possible.”
American Family Insurance chair and CEO Bill Westrate said: “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.
“We are 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.”
Last month, Sentry partnered with Aegis Professional Risk, a division of Aegis General and K2 Insurance Services, to offer a new errors and omissions programme.
