In the first half of 2024, the Employer Voluntary Benefits segment recorded revenues of $535 million, with an Adjusted Net Income of $45 million and statutory capital and surplus of $255 million. The sale is projected to result in a gain of approximately $600 million for Allstate and will increase its deployable capital by $1.6 billion. However, the transaction is expected to reduce Allstate’s adjusted net income return on equity by roughly 100 basis points. The deal is anticipated to close in the first half of 2025.
The agreement also includes a strategic distribution partnership. Under this arrangement, The Standard will become the exclusive carrier for Allstate’s group life and disability insurance, guaranteed standard issue individual disability, and supplemental and voluntary products, which will continue to be distributed through Allstate’s network of exclusive agents.
Tom Wilson, Chair, President and CEO of Allstate commented on the move, saying: “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 five year exclusive distribution arrangement.”
He continued: “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.”
Dan McMillan, President and CEO of The Standard, added: “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.”
