The Allstate Corporation announced the completion of the sale of its Group Health business to Nationwide for $1.25 billion. This transaction delivers strong shareholder value and is expected to improve growth opportunities for the Group Health business by integrating it with Nationwide’s stop-loss insurance operations. The sale aligns with Allstate's strategic approach to capital management.
This divestiture, combined with the earlier sale of the Employer Voluntary Benefits business, brings Allstate's total proceeds from these health segment divestitures to $3.25 billion. The sale of the Group Health business is expected to generate a financial book gain of approximately $500 million for Allstate. These proceeds are intended to support Allstate's strategic growth opportunities.
Tom Wilson, Allstate’s Chair, President, and CEO, stated that selling these businesses demonstrates their strength and Allstate’s disciplined capital management. Jess Merten, Allstate’s Chief Financial Officer, reiterated that the capital generated from these sales will be reallocated to Allstate’s core strategic growth initiatives, further enhancing shareholder value.
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