When the transaction closes in early 2021, Allstate will become the fifth largest independent agency carrier.
Yesterday, Allstate announced that it has reached a deal to acquire National General Holdings Corp. for a deal reported to total nearly $4 billion.
When the transaction closes in early 2021, pending regulatory approval and other closing conditions, Allstate will become the fifth largest independent agency carrier. The merger promises to provide independent agencies with a broader, more modern suite of products, including non-standard auto coverage.
“The Allstate-National General deal will provide many independent agents with a nationally recognized brand and efficient technology at a time when both are key for consumers and agency production and workflow,” said Bob Rusbuldt, Big “I” president & CEO.
“This acquisition continues the trend of companies recognizing the true value of independent agents and brokers as we continue to see companies expanding their business model in the independent agency system,” Rusbuldt added. “This is great news for our distribution channel.”
In addition to increasing Allstate’s presence in the non-standard auto market, the deal will also provide agents with the ability to utilize National General’s innovative and highly intuitive technology platform, increasing customer satisfaction and the ease of doing business with independent agents.
“National General’s business and technology platforms will be utilized to further strengthen Allstate’s existing independent agent businesses,” said an Allstate spokesperson. “We are excited about combining each company’s expertise while offering a broader array of products.”
“The acquisition increases personal lines premiums by $4 billion and market share by over 1 percentage point to 10%,” they said. “With the acquisition, we’ll become a top-five personal lines carrier in the independent agent distribution channel.”
Will Jones is IA managing editor.