The Allstate Corporation announced a definitive agreement to sell its Group Health business to Nationwide for $1.25 billion in cash. This transaction is subject to standard closing conditions, including regulatory approvals, and is expected to close in 2025.
For the first nine months of 2024, the Group Health business generated revenues of $608 million and Adjusted Net Income of $69 million. This divestiture is part of Allstate's broader strategy to maximize shareholder value by combining its Health & Benefits businesses with companies that have greater strategic alignment.
When combined with the previously announced sale of the Employer Voluntary Benefits business, these divestitures are expected to generate total sale proceeds of $3.25 billion. The sale of the Group Health business is anticipated to result in a financial book gain of approximately $450 million and increase deployable capital by $0.9 billion, though it is expected to reduce adjusted net income return on equity by 75 basis points after closing.
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