NE Valley Times

Nationwide has announced a definitive agreement to acquire The Allstate Corporation's employer stop loss segment for $1.25 billion. This acquisition is set to enhance Nationwide's portfolio, focusing on the financial service needs of small businesses. The transaction is expected to be finalized in the latter half of 2025, pending customary closing conditions.

Nationwide CEO Kirt Walker commented on the acquisition, stating, "As Nationwide continues to focus on our mission to protect people, businesses and futures with extraordinary care, this acquisition is a strong fit." He emphasized that the company aims to extend its protection solutions for business owners now and in the future.

John Carter, president and chief operating officer of Nationwide Financial, added that acquiring Allstate’s employer stop loss segment will expand their portfolio. "This represents a significant investment in the stop loss market," he said. The acquisition aims to serve over 13,000 small businesses while enhancing growth opportunities within employer benefits.

Citi serves as the exclusive financial advisor and Squire Patton Boggs LLP as legal advisor for Nationwide in this transaction. J.P. Morgan and Ardea Partners are advising Allstate financially with Willkie Farr & Gallagher LLP acting as legal advisor.

Nationwide is recognized as one of the largest diversified financial services organizations in the U.S., rated A+ by Standard & Poor’s. Meanwhile, Allstate provides various protection products through multiple distribution channels and is known for its slogan “You’re in Good Hands with Allstate.”

For further details about both companies' offerings and updates regarding this transaction, interested parties can visit their respective websites.