SILVER SPRING, Md. (AP)– Allstate is purchasing National General Holdings for $4 billion in cash, broadening the scope of its insurance coverage holdings.
National General shareholders will get $32 per share that they hold, plus closing dividends of about $2.50 per share, for a total of about $34.50 each.
National General had gross premiums of $5.6 billion in 2019, generating operating income of $319 million in 2019 from a series of property-liability coverage consisting of “non-standard” car insurance coverage.
Allstate, based in Northbrook, Ill., stated that National General’s service and innovation will boost its existing independent representative businesses. The acquisition will increase Allstate’s individual lines premiums by $4 billion and market share by more than one percentage indicate 10%.
The board of National General Holdings Corp. has actually already approved the offer, which is expected to close in early 2021. The New York insurance provider stated that no fewer than 40% of its ballot shares have also devoted to approve the deal.