StanCorp Financial Group (The Standard) has completed the acquisition of Allstate’s employer voluntary benefits business in a transaction valued at approximately $2bn.
The deal, initially announced in August 2024, generated a financial book gain of around $625m for Allstate.
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It includes American Heritage Life Insurance Company, which will eventually operate under The Standard brand.
As part of the agreement, a future distribution partnership will be established, allowing The Standard’s products and services to be offered to Allstate customers.
The Standard president and CEO Dan McMillan said: “This transaction presented a unique opportunity to accelerate our growth strategy and deliver one of the most comprehensive workplace benefits portfolios in the market. I look forward to welcoming the Allstate employees and customers to The Standard.”
Allstate chief financial officer Jess Merten stated: “The sale of Employer Voluntary Benefits generated a financial book gain of about $625m. The proceeds will support our disciplined capital management approach, including the recently announced share repurchase programme.”
In January this year, Allstate also entered an agreement to sell its employer stop loss insurance unit, Group Health, to US insurer Nationwide for $1.25bn in cash.
This sale is expected to result in a financial book gain of around $450m for Allstate as well as increase its deployable capital by $900m.
The Allstate Corporation chair, CEO and president Tom Wilson added: “This transaction, along with the previously announced definitive agreement to sell the Group Health business, is expected to generate combined proceeds of $3.25bn in 2025. Allstate is well-positioned to execute our strategy to increase personal property liability market share and expand protection services.”
