Nationwide Acquires Allstate's Employer Stop-Loss Segment for $1.25 Billion
Columbus, Ohio – February 2, 2023 – Nationwide, a leading provider of insurance and financial services, announced today its agreement to acquire Allstate Corporation's employer stop-loss segment for $1.25 billion.
The transaction, expected to close in the second half of 2025, will expand Nationwide's stop-loss insurance offerings, providing financial protection for companies against large medical expenses incurred by employees.
Stop-loss insurance acts as a financial safeguard for businesses with self-funded health plans. It reimburses the employer for any medical expenses that exceed a predetermined amount per employee, per year.
"Acquiring Allstate's employer stop-loss segment aligns with Nationwide's commitment to delivering comprehensive insurance solutions," said John Carter, President of Nationwide. "This acquisition will enhance our portfolio and allow us to serve a broader range of businesses."
The sale will result in a financial book gain of approximately $450 million and increase deployable capital by $900 million for Allstate. The transaction is subject to regulatory approvals and customary closing conditions.
J.P. Morgan and Ardea Partners served as financial advisors to the transaction.