Allstate Leverages National General Platform to Grow Personal Property-Liability

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) has reached an agreement to acquire SafeAuto for a total of $300 million, consisting of $270 million in cash and $30 million in pre-close dividends. SafeAuto, based in Columbus, Ohio, will enhance National General’s direct-to-consumer non-standard auto insurance offerings across 28 states. This acquisition is projected to be immediately accretive to earnings and is expected to close by the end of Q3, pending regulatory approval. Allstate's integration strategy aims to lower costs and increase growth in providing affordable insurance solutions.

Positive

• Acquisition of SafeAuto expected to be immediately accretive to earnings.
• Enhances National General's distribution and product capabilities.
• Broadens customer reach with operations in 28 states.

Negative

• None.

The Allstate Corporation (NYSE: ALL) 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. 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,” said Glenn Shapiro, President, Personal Property-Liability. “SafeAuto will accelerate our strategy of offering affordable protection solutions by lowering costs and lead to higher growth,” said 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,” said Ron Davies, Chief Executive Officer, 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.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210601006042/en/

FAQ

What is the acquisition cost for SafeAuto by Allstate?

Allstate is acquiring SafeAuto for a total of $300 million, which includes $270 million in cash and $30 million in pre-close dividends.

When is the Allstate acquisition of SafeAuto expected to close?

The acquisition is expected to close near the end of the third quarter, subject to regulatory approval.

How will the acquisition of SafeAuto impact Allstate's earnings?

The acquisition is projected to be immediately accretive to Allstate's earnings.

Where is SafeAuto based?

SafeAuto is headquartered in Columbus, Ohio.

In which states does SafeAuto provide insurance coverage?

SafeAuto offers insurance coverage in 28 states.