Nationwide to Acquire Allstate Employer Stop Loss Business for $1.25 billion

Nationwide has announced a definitive agreement to acquire Allstate's employer stop loss segment for $1.25 billion.

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Nationwide has announced a definitive agreement to acquire Allstate's employer stop loss segment for $1.25 billion. The transaction, expected to close in the second half of 2025, will strengthen Nationwide's portfolio and expand its ability to provide stop loss insurance to small businesses.

The acquisition will protect over 13,000 small businesses through stop loss insurance, which safeguards employers with self-funded health insurance plans from excess losses. The deal represents a significant investment in the stop loss market and will position Nationwide as a leading provider in the industry.

The transaction will add experienced talent with proven business results and complement Nationwide's existing offerings while creating opportunities for growth in employer benefits. Citi and Squire Patton Boggs LLP are advising Nationwide, while J.P. Morgan, Ardea Partners, and Willkie Farr & Gallagher LLP are advising Allstate.

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The acquisition will strengthen and diversify Nationwide's portfolio, meeting more of the financial services needs of small businesses

COLUMBUS, Ohio , Jan. 30, 2025 /PRNewswire/ -- Nationwide, one of the largest providers of insurance and financial services products in the U.S., announced today that it has entered into a definitive agreement to purchase The Allstate Corporation's (NYSE: ALL) employer stop loss segment for $1.25 billion. The transaction is expected to close in the second half of 2025, subject to customary closing conditions.

"As Nationwide continues to focus on our mission to protect people, businesses and futures with extraordinary care, this acquisition is a strong fit," said Nationwide CEO Kirt Walker. "We are extending our protection solutions to meet the needs of business owners today and into the future." 

This acquisition will further strengthen and diversify Nationwide Financial's portfolio, expanding the company's ability to sell stop loss insurance to small businesses. Stop loss insurance protects employers who self-fund their health insurance plans from excess losses.

"Acquiring Allstate's employer stop loss segment will broaden Nationwide Financial's portfolio, meeting the needs of small businesses, allowing us to serve more customers and positioning us as a leading provider in the stop loss industry," said John Carter, president and chief operating officer of Nationwide Financial. "This represents a significant investment in the stop loss market, adding experienced talent with proven business results, protecting over 13,000 small businesses and complementing our existing offerings in the market while accelerating our opportunity for growth."

This new business will lay the foundation for Nationwide to continue to add capabilities for significant growth in employer benefits.

Citi is acting as exclusive financial advisor and Squire Patton Boggs LLP is acting as legal advisor to Nationwide. J.P. Morgan and Ardea Partners are acting as financial advisors and Willkie Farr & Gallagher LLP is acting as legal advisor to Allstate.

About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by Standard & Poor's. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; and pet, motorcycle and boat insurance.

About Allstate
The Allstate Corporation (NYSE: ALL) protects people from life's uncertainties with a wide array of protection for autos, homes, electronic devices, and identity theft. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online, and at the workplace. Allstate is widely known for the slogan "You're in Good Hands with Allstate" For more information, visit www.allstate.com.

For more information, visit www.nationwide.com.

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01/2025

Contact:
Emily Buzzard
(614) 249-6349
Emily.buzzard@nationwide.com
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SOURCE Nationwide

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the value of Nationwide's acquisition of Allstate's (ALL) stop loss business?

Nationwide is acquiring Allstate's employer stop loss business for $1.25 billion.

When will the Nationwide-Allstate (ALL) stop loss acquisition close?

The transaction is expected to close in the second half of 2025, subject to customary closing conditions.

How many small businesses will be protected under the Nationwide-Allstate (ALL) stop loss deal?

The acquisition will protect over 13,000 small businesses through stop loss insurance coverage.

What is the strategic benefit of Nationwide acquiring Allstate's (ALL) stop loss business?

The acquisition will strengthen and diversify Nationwide Financial's portfolio, expand its stop loss insurance capabilities for small businesses, and position it as a leading provider in the stop loss industry.

Which financial advisors are involved in the Nationwide-Allstate (ALL) stop loss deal?

Citi is advising Nationwide, while J.P. Morgan and Ardea Partners are advising Allstate on the transaction.