Nationwide to acquire the Group Health business of Allstate for $1.25bn.

Nationwide, a diversified insurance and financial services company, agreed to acquire the Group Health business, which provides stop-loss insurance to small businesses of Allstate, an insurance firm, for $1.25bn. “Nationwide is extremely well capitalized and this transaction advances its growth strategy by expanding its product portfolio and distribution capabilities. Allstate acquired the Group Health business in 2021 as part of the $4bn acquisition of National General. The sale is expected to generate a financial book gain of about $450m, increase deployable capital by $0.9bn but reduce adjusted net income return on equity by 75 basis points after closing, which is expected in 2025," Jess Merten, Allstate CFO.