Allstate to acquire National General Holdings
According to many reports, Allstate Corporation to acquire National General Holdings Corp. for $ 4 billion.
Allstate to acquire National General Holdings Corp. in its entirety, which includes the services of the national general lender. National General is the second largest provider of insurance and direct tracking with lenders nationwide.
National General will be part of one of the largest insurers in the world.
ABC News reported that the National General Holdings Corp. has already approved the deal, which is expected to close in early 2021. National General said as much as 40% of its voting shares have also pledged to approve the deal.
ABC News added that Northbrook, Ill.-Based Allstate said National General’s business and technology would bolster its existing independent agent business. The acquisition will increase Allstate’s personal line premiums by $ 4 billion and market share by more than a percentage point to 10%.
“The acquisition of National General accelerates Allstate’s strategy to increase its share of the personal property liability market and significantly expands our distribution of independent agents,” said Tom Wilson, president, president and chief executive officer. direction in a version. “This acquisition increases personal premiums by $ 4.0 billion and market share by more than 1 percentage point to 10%. National General’s business and technology platforms will be used to further strengthen Allstate’s existing independent agent businesses. The transaction will increase adjusted net earnings per share and return on equity starting in the first year. “
“National General’s operational expertise has allowed us to serve clients and independent agents well as we have grown both organically and through acquisition,” said Barry Karfunkel, co-president and CEO of the New York-based company. insurer. “We are delighted to combine the expertise and commitment of our team with Allstate to become one of the top five providers of personal services for independent agents while offering a wider range of products. National General shareholders are also benefiting by unleashing the value created over the past decade. “
The announcement also noted that the transaction was backed by SD Capital, which owns “approximately 7.4% of the outstanding common shares of National General.”
“As proud shareholders since 2013, we support the decision of the Board of Directors of National General to move forward with this strategic transaction,” said John Phelan, Managing Partner and Co-Founder of MSD Capital, LP and MSD Partners, LP.
“We believe the transaction allows National General employees, customers and shareholders to benefit from the significant franchise value created by the management team over the past decade,” added Dan Bitar, Managing Director of MSD Capital .