News by sections

News by region
Issue archives
Archive section
Emerging talent
Emerging talent profiles
Domicile guidebook
Guidebook online
Search site
Features
Interviews
Domicile profiles
Generic business image for news article Image: Adobestock/nespix

31 January 2025
US
Reporter Diana Bui

Share this article





Allstate to sell group health business to Nationwide for US$1.25bn

Allstate Corporation has agreed to sell its group health business, which provides stop-loss insurance to small businesses, to Nationwide for US$1.25 billion in cash.

The sale follows Allstate’s previously announced divestiture of its employer voluntary benefits business to The Standard, bringing total sale proceeds to US$3.25 billion.

The company’s individual health business, which posted an adjusted net income of US$18 million in the first nine months of 2024, will either be retained or merged with another entity.

The transaction is expected to generate a financial book gain of approximately US$450 million and increase deployable capital by US$0.9 billion.

Tom Wilson, chair, president and CEO at Allstate, says: “We reached another milestone in the strategy to maximise shareholder value by combining the health and benefits businesses with companies that have greater strategic alignment.”

Jess Merten, CEO of Allstate, adds: “Nationwide is extremely well capitalised and this transaction advances its growth strategy by expanding its product portfolio and distribution capabilities.”

Subscribe advert
Advertisement
Get in touch
News
More sections
Black Knight Media