Sentry Insurance will acquire auto insurer The General from American Family Insurance for a cash consideration of approximately US$1.1 billion, with a closing date of the end of 2024.
Including the value of assumed liabilities and required capital, the total transaction value will be US$1.7 billion.
Sentry, a mutual insurance company known for its expertise in business insurance, also provides coverage for non-standard auto, motorcycle, and off-road vehicles through its Dairyland brand.
Both brands will continue to operate independently as Sentry and The General work through the integration process. Approximately 1,300 employees from The General will join Sentry's workforce on 1 January 2025 and continue to be headquartered in Nashville.
Pete McPartland, chairman and CEO of Sentry, comments: "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's an exciting step forward for both companies, and I'm proud of the work our team has done to make this possible."
Bill Westrate, chair and CEO of American Family Insurance, adds: "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."
