Nationwide Acquires Allstate’s Employer Stop Loss Division for $1.25 Billion

Nationwide is set to acquire Allstate's employer stop loss division for $1.25 billion, boosting its benefits offerings and market position for small businesses.

Nationwide has announced its intention to acquire Allstate’s employer stop loss division in a deal valued at $1.25 billion, with plans for finalization in the latter half of this year.

This strategic move aims to bolster Nationwide’s commitment to protecting individuals and businesses alike.

Kirt Walker’s Vision

Kirt Walker, Nationwide’s CEO, emphasized that this acquisition is a natural extension of the company’s mission.

He noted that it will allow Nationwide to broaden its range of protective services, responding effectively to the changing demands of today’s business owners.

Growth Potential in Employer Benefits

The purchase is set to strengthen Nationwide’s position in employer benefits, paving the way for significant growth in this sector.

John Carter, president and COO of Nationwide Financial, highlighted that integrating Allstate’s stop loss division will enhance the company’s offerings.

The move is seen as a tailored solution for small businesses and is likely to help expand Nationwide’s client base, reinforcing its role in the competitive stop loss market.

This transaction not only emphasizes Nationwide’s commitment to the industry but also aims to support over 13,000 small enterprises, further enriching their existing portfolio and creating new growth avenues.

Advisory Roles

In terms of advisory roles, Citi has stepped in to provide financial insights to Nationwide, while Squire Patton Boggs takes on legal representation.

On the side of Allstate, J.P. Morgan and Ardea Partners are advising them on financial matters, with Willkie Farr & Gallagher serving as their legal counsel.

Source: Dig-in