Allstate to sell employer voluntary benefits business to The Standard
Allstate has announced plans to sell its Employer Voluntary Benefits business to The Standard for $2 billion in cash.
For the first half of 2024, these businesses had revenues of $535 million, Adjusted Net Income of $45 million, and statutory capital and surplus of $255 million. The sale is expected to generate a gain of about $600 million and increase deployable capital by $1.6 billion. Adjusted net income return on equity will decline by about 100 basis points following the sale, which is expected in the first half of 2025.
The deal also includes a distribution agreement under which The Standard will become Allstate’s exclusive carrier for sales of group life and disability insurance, guaranteed standard issue individual disability, and supplemental and voluntary products distributed by Allstate’s exclusive agents.
“Allstate’s Employer Voluntary Benefits business provides protection to over 3.5 million customers who will continue to be well served by The Standard. The alignment between Allstate’s industry-leading product offerings, employer relationships, distribution and talented team and The Standard’s group benefits business will provide customers with broader protection and higher value. Allstate agents will now offer a broader array of options to customers under a fiveyear exclusive distribution arrangement. Allstate shareholders will also benefit as capital is deployed to increase market share in personal property-liability and expand protection offerings. Discussions on the sale of the Individual and Group Health businesses are continuing and are expected to achieve the same success.” – Tom Wilson, Chair, President and CEO of Allstate.
“We see significant synergies between Allstate’s industry-leading supplemental and voluntary life products and The Standard’s expertise in workplace benefits. This transaction enhances our suite of offerings for customers of all sizes. We look forward to welcoming the talented Allstate Employer Voluntary Benefits employees to The Standard and to a mutually beneficial distribution partnership as we move forward.” – Dan McMillan, President and CEO of The Standard .
