PORTLAND, Ore., Aug. 13, 2024 (BUSINESS WIRE) — StanCorp Financial Group (The Standard) and Allstate Corporation (NYSE: ALL) today announced a definitive agreement under which The Standard will acquire Allstate’s employer voluntary benefits business for approximately $2 billion and enter into a product distribution partnership. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.
Standard and Allstate are leading providers of workplace benefits with deep benefits administration expertise and a shared commitment to customer service. A leader in group life, disability and fringe benefits, Standard was founded in 1906 and sold its first employee benefits policy in 1951 – a contract that remains in effect today. Allstate’s Employer Voluntary Benefits business is the industry leader in supplemental and voluntary workplace benefits, including whole life, universal life, accident, hospitalization, cancer and critical illness insurance.
“Allstate’s employer voluntary benefits business is an excellent fit for The Standard’s growing workplace benefits business, and there are significant synergies between Allstate’s industry-leading supplemental and voluntary life insurance products and our group benefits business,” said Dan McMillan, president and CEO of The Standard. “We look forward to welcoming Allstate EVB employees to The Standard and building a mutually beneficial distribution partnership with Allstate.”
“Allstate’s employer voluntary benefits business provides protection to the more than 3.5 million customers for whom Standard continues to provide excellent service,” said Tom Wilson, chairman, president and CEO of Allstate Corp. “The combination of Allstate’s industry-leading products, employer relationships, sales and talented team with Standard’s group benefits business will provide customers with broader protection and greater value. Allstate agents will be able to offer a wider range of options to their customers under an exclusive five-year distribution agreement.”
Upon closing, The Standard will acquire Allstate’s employee voluntary benefits business, employees and operations. The transaction will significantly accelerate The Standard’s growth and increase the scale and competitiveness of its employee benefits business in the United States.
Through this distribution alliance, The Standard will become Allstate’s exclusive insurer for the sale of group life and disability insurance, guaranteed standard issue individual disability insurance, supplemental insurance and optional insurance sold by Allstate’s exclusive agents. The acquisition creates a trusted group benefits partner for Allstate customers.
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“The Standard is committed to continued growth and excellence in the group benefits market,” said David Payne, vice president of employee benefits at The Standard. “This addition and continued partnerships enable The Standard to scale and provide comprehensive workplace benefits to employers of all sizes.”
Citi is serving as exclusive financial advisor and Debevoise & Plimpton LLP is serving as legal advisor to The Standard. JPMorgan and Ardea Partners are serving as financial advisors and Willkie Farr & Gallagher LLP is serving as legal advisor to Allstate.
About standards
The Standard is a group of companies dedicated to helping our customers live financially prosperous and secure lives. Since 1906, we have been a leading provider of financial protection products and services to employers and individuals. Our products include group and individual disability insurance, group life insurance, accidental death and disability insurance, group dental and vision insurance, voluntary and supplemental benefits, absence management and paid family leave services, retirement plan products and services, and individual annuities. To learn more about The Standard, visit standard.com or follow us on LinkedIn.
The Standard is the marketing name for StanCorp Financial Group, Inc. and its subsidiaries: Standard Insurance Company, The Standard Life Insurance Company of New York, Standard Retirement Services, StanCorp Mortgage Investors, StanCorp Investment Advisers, StanCorp Real Estate, StanCorp Equities, Anthem Life Insurance Company, Anthem Life & Disability Insurance Company and Greater Georgia Life Insurance Company.
About Allstate
Allstate Corporation (NYSE: ALL) protects people against life’s uncertainties with a wide range of protection for auto, home, electronics and identity theft. Products are available through an extensive distribution network, including Allstate agents, independent agents, major retailers, online and at workplaces. Allstate is known for its slogan, “Allstate gives you peace of mind.” For more information, visit www.allstate.com.
Financial information, including important announcements, regarding The Allstate Corporation is periodically posted at www.allstateinvestors.com.
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contact address
standard
Bob Speltz
(971) 212-9549
bob.speltz@standard.com
Allstate
Nick Nottori
(847) 402-5600
Alistair Gobin
(847) 402-2800
