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.”
