Allstate Acquires National General for USD 4bn.

MANews-(C)2009-2020

Illinois, US-based insurance company Allstate Corp. (NYSE: ALL) has agreed to acquire National General Holdings Corp. for approximately USD 4bn in cash to expand position in personal lines market, the company said.

The transaction, acquired for USD 34.50 per share, is expected to close in early 2021, subject to regulatory approvals and other customary closing conditions.

National General shareholders will receive USD 32.00 per share in cash from Allstate, plus closing dividends expected to be USD 2.50 per share, providing USD 34.50 in total value per share.

Allstate will fund the share purchase by deploying USD 2.2bn in combined cash resources and, subject to market conditions, issuing USD 1.5bn of new senior debt. Allstate expects to maintain its current share repurchase programme.

Acquiring National General accelerates Allstate's strategy to increase market share in personal property-liability and expands independent agent distribution.

National General provides property-liability products through independent agents with a presence in non-standard auto insurance. The company also has Accident and Health and Lender-Placed Insurance...

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