SafeAuto Insurance agrees to join Allstate

Rhea-AI Summary

SafeAuto has agreed to be acquired by Allstate Corporation through its subsidiary, National General. The strategic acquisition aims to enhance capabilities and distribution channels, leveraging National General's expertise in direct-to-consumer non-standard auto insurance. Co-founders Ari Deshe and Jon Diamond expressed confidence that this partnership will drive growth in the non-standard market. The transaction is anticipated to close by Q3 2021, pending regulatory approvals.

Positive

• Strategic acquisition expected to enhance SafeAuto's market capabilities and distribution.
• National General's track record in acquiring and integrating companies may accelerate SafeAuto's growth.

Negative

• None.

COLUMBUS, Ohio, June 1, 2021 /PRNewswire/ -- SafeAuto has agreed to be acquired by The Allstate Corporation (NYSE: ALL) through Allstate subsidiary National General.

SafeAuto will add capabilities and distribution with its 24 hour, 7 days a week customer contact centers at 1-800-SafeAuto and its website. The combination will leverage 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.

Ari Deshe, Co-Founder and Chairman of SafeAuto said, "I am confident that combining forces with National General with the backing of Allstate will allow SafeAuto to grow its platform in the non-standard space.  I wish to thank all of our past and present associates for their contributions to our success during our 27-year history."

"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," said Jon Diamond, Co-Founder and Vice Chairman of SafeAuto.

SafeAuto's CEO of nine years and former Allstater Ron Davies said, "I am excited to see SafeAuto join the Allstate family and National General.  Allstate is an iconic brand with superb capabilities and people that will enable SafeAuto to more rapidly scale and serve even more consumers."

The transaction is expected to close by the end of the third quarter of 2021, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions.

Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to SafeAuto in the transaction.

For more information, click here.

About SafeAuto
Safe Auto Insurance Group Inc. has been a leading provider of affordable state minimum coverage since its founding in 1993. From humble beginnings in a small, one-room office downtown to a full office building near Easton Town Center, SafeAuto has always been proud to call Columbus, Ohio home. With an unwavering entrepreneurial spirit and the idea that everybody has the right to have insurance, we're now providing options in 28 states for drivers who are looking to save hard-earned dollars. SafeAuto offers flexible payment plans, immediate coverage, and 24/7 customer service through the phone and web.  Whether you're looking for auto, commercial, home, life, motorcycle or renters insurance, our dedicated team rides with you around the clock to ensure we are providing you the coverage that fits your needs. Our agents are available to assist you 24/7 at 1-800-SAFEAUTO (1-800-723-3288). Play it safe with SafeAuto! For more information, visit www.safeauto.com.

Media Contact:
MediaSource on behalf of SafeAuto
Shannon McCormick
shannon@mediasourcetv.com 
M: 614.477.2719

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SOURCE SafeAuto

FAQ

What is the acquisition date of SafeAuto by Allstate?

The acquisition agreement was announced on June 1, 2021.

What will happen to SafeAuto after the acquisition by Allstate?

SafeAuto will continue to operate under Allstate's National General subsidiary, focusing on enhancing its non-standard auto insurance offerings.

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

The acquisition aims to leverage SafeAuto's customer service capabilities and enhance Allstate's distribution in the non-standard auto insurance market.

When is the expected closure of the SafeAuto acquisition?

The transaction is expected to close by the end of Q3 2021, subject to regulatory approvals.

What is the purpose of acquiring SafeAuto for Allstate (NYSE: ALL)?

The acquisition is intended to enhance capabilities and distribution channels in the non-standard auto insurance sector.