Nationwide, one of the largest providers of insurance and financial services products in the U.S., announced today that it has entered into a definitive agreement to purchase The Allstate Corporation’s (NYSE: ALL) employer stop loss segment for $1.25 billion. The transaction is expected to close in the second half of 2025, subject to customary closing conditions.
“As Nationwide continues to focus on our mission to protect people, businesses and futures with extraordinary care, this acquisition is a strong fit,” said Nationwide CEO Kirt Walker. “We are extending our protection solutions to meet the needs of business owners today and into the future.”
This acquisition will further strengthen and diversify Nationwide Financial’s portfolio, expanding the company’s ability to sell stop loss insurance to small businesses. Stop loss insurance protects employers who self-fund their health insurance plans from excess losses.
“Acquiring Allstate’s employer stop loss segment will broaden Nationwide Financial’s portfolio, meeting the needs of small businesses, allowing us to serve more customers and positioning us as a leading provider in the stop loss industry,” said John Carter, president and chief operating officer of Nationwide Financial. “This represents a significant investment in the stop loss market, adding experienced talent with proven business results, protecting over 13,000 small businesses and complementing our existing offerings in the market while accelerating our opportunity for growth.”
This new business will lay the foundation for Nationwide to continue to add capabilities for significant growth in employer benefits.
Citi is acting as exclusive financial advisor and Squire Patton Boggs LLP is acting as legal advisor to Nationwide. J.P. Morgan and Ardea Partners are acting as financial advisors and Willkie Farr & Gallagher LLP is acting as legal advisor to Allstate.
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