Allstate to sell Employer Voluntary Benefits business to The Standard
The Allstate Corporation (NYSE: ALL) announced a definitive agreement to sell the Employer Voluntary Benefits business to StanCorp Financial Group, Inc., (The Standard) for $2.0 billion. The sale represents the first step in the strategic decision to enable the three Allstate Health & Benefits businesses – Employer Voluntary Benefits, Individual and Group Health – to realize their full growth potential by combining them with companies that have additional capabilities.
Tom Wilson, Chair, President and CEO of The Allstate Corporation:
“Allstate’s Employer Voluntary Benefits business provides protection to over 3.5 million customers who will continue to be well served by The Standard. The alignment between Allstate’s industry-leading product offerings, employer relationships, distribution and talented team and The Standard’s group benefits business will provide customers with broader protection and higher value. Allstate agents will now offer a broader array of options to customers under a five-year exclusive distribution arrangement. Allstate shareholders will also benefit as capital is deployed to increase market share in personal property-liability and expand protection offerings. Discussions on the sale of the Individual and Group Health businesses are continuing and are expected to achieve the same success.”
Dan McMillan, President and CEO of The Standard:
“We see significant synergies between Allstate’s industry-leading supplemental and voluntary life products and The Standard’s expertise in workplace benefits. This transaction enhances our suite of offerings for customers of all sizes. We look forward to welcoming the talented Allstate Employer Voluntary Benefits employees to The Standard and to a mutually beneficial distribution partnership as we move forward.”
Transaction summary
Allstate will sell its subsidiaries that provide employer voluntary benefits to The Standard for $2.0 billion in cash, adjusted for the closing balance sheet, and subject to customary closing conditions and approvals. For the first half of 2024, these businesses had revenues of $535 million, Adjusted Net Income of $45 million, and statutory capital and surplus of $255 million.
“The sale is expected to generate a gain of about $600 million and increase deployable capital by $1.6 billion,” said Jess Merten, Allstate Chief Financial Officer. “Adjusted net income return on equity will decline by about 100 basis points following the sale, which is expected in the first half of 2025.”
The Standard names Ryan Chieffo Director of Government and Regulatory Affairs
Standard Insurance Company (The Standard) announced that Ryan Chieffo has been named director of Government and Regulatory Affairs.
In his new role, Chieffo will represent The Standard before federal, state and local legislative and regulatory bodies. Chieffo will have responsibility for maintaining The Standard’s collaborative relationship with regulators in all jurisdictions as well as with various industry and trade associations.
Chieffo joined The Standard in 2016 as an attorney in the Legal and Compliance division. Before coming to The Standard, Chieffo was an assistant director at the Vermont Department of Financial Regulation and an employee benefits attorney at Perkins Coie LLP.
“I am excited to welcome Ryan to the team,” said Justin Delaney, vice president of External Affairs and Associate Counsel. “He brings a wealth of internal and external experience to his new role at The Standard, and his unique skillset will be an asset to our businesses and regulators alike.”
Chieffo earned a Bachelor of Arts degree in philosophy from Siena College in New York and his Juris Doctor degree from Georgetown University Law Center in Washington, D.C.