US primary insurer The Allstate Corporation has completed the previously announced sale of its Group Health business to Nationwide for $1.25 billion, with the transaction closing per the terms of the agreement executed on January 30th, 2025.
Nationwide stated that this acquisition will serve as a foundation for its ongoing efforts to add capabilities for significant growth in employer benefits.
The deal is expected to strengthen and diversify Nationwide Financial’s portfolio, enhancing the company’s ability to sell stop-loss insurance to small businesses.
Tom Wilson, Chair, President and Chief Executive Officer (CEO), Allstate commented, “The sale delivers strong shareholder value and improves growth opportunities for Group Health by joining Nationwide’s stop-loss insurance business. Selling the Group Health and Employer Voluntary Benefits businesses for a combined $3.25 billion demonstrates the strength of these businesses and Allstate’s strategic approach to capital management.”
Jess Merten, Chief Financial Officer, Allstate, added, “The sale of Group Health is expected to generate a financial book gain of approximately $500 million.”
Kirt Walker, CEO, Nationwide, said, “This acquisition expands the capabilities, specialised expertise and strong partnerships of our financial services organisation, positioning our company as a leading provider in the employer stop loss industry. As a company committed to protecting people, businesses and futures with extraordinary care, enhancing our employer stop loss segment helps us continue to meet the needs of business owners today and into the future.”
As part of the acquisition, Lindsey Murray, the former Chief Operating Officer of Allstate Health, has joined Nationwide and will lead the newly formed Nationwide Group Benefits segment. Murray reports to John Carter, President and COO of Nationwide Financial.
Murray has held several leadership roles at Allstate, including Executive Vice President of the Product, Pricing and Underwriting team for the Health & Benefits division, overseeing the Voluntary Benefits, Individual Health and Group Health business lines.
Carter commented, “Lindsey brings a wealth of experience and a proven history of success in the employee benefits market. Her expertise builds on and complements Nationwide’s core capabilities, helping us drive continued growth as we navigate the evolving financial landscape.”
For the first nine months of 2024, Group Health had revenues of $608 million and an adjusted net income of $69 million.
