Allstate to Buy National General, Expanding IA Business
U.S. insurance giant Allstate Corp. said it has agreed to acquire National General Holdings Corp. for about $4 billion in cash, expanding its reach in the personal property-liability business, according to the Wall Street Journal..
Allstate will fund the deal with $2.2 billion in cash resources and by issuing $1.5 billion in new senior debt. National General’s board has approved the transaction. The companies said the deal is expected to close early next year, subject to regulatory approvals.
The acquisition “accelerates Allstate’s strategy to increase market share in personal property-liability and significantly expands our independent agent distribution,” said Tom Wilson, chairman and chief executive of Allstate.