Allstate to acquire SafeAuto
Allstate has agreed to acquire SafeAuto, a non-standard auto insurance carrier focused on providing state-minimum private-passenger auto insurance with coverage options in 28 states. The total consideration includes a $270 million cash purchase price plus approximately $30 million in pre-close dividends of certain non-insurance assets.
SafeAuto, a privately held company headquartered in Columbus, Ohio, will add capabilities and distribution to National General’s direct-to-consumer non-standard auto insurance operations and leverage National General’s track record of acquiring and integrating companies to accelerate growth. SafeAuto broadens the company’s product and distribution footprint.
“National General’s integration of Allstate’s independent agent businesses has made excellent progress, and the team has the capacity to integrate SafeAuto into its direct insurance business.” – Glenn Shapiro, president, Personal Property-Liability.
“SafeAuto will accelerate our strategy of offering affordable protection solutions by lowering costs and lead to higher growth.” – Peter Rendall, president, National General, Property and Casualty.
“The acquisition and integration capabilities of National General, combined with the backing and capital of Allstate, will enable us to serve more customers.” – Ron Davies, CEO, SafeAuto.
“It has been an honor to have worked with so many these past 27 years building SafeAuto into a company dedicated to making the purchase of auto insurance easy and affordable. We are delighted to turn the reins over to Allstate and National General, which together, will take Playing It Safe with SafeAuto to the next level.” – Jon Diamond, cofounder and vice chairman of SafeAuto.
The transaction is expected to close near the end of the third quarter, subject to regulatory approval and customary closing conditions. The cash purchase of SafeAuto would be immediately accretive to earnings.