Nationwide to Acquire Allstate Employer Stop Loss Business for $1.25 billion

Core Viewpoint - Nationwide has announced a definitive agreement to acquire The Allstate Corporation's employer stop loss segment for $1.25 billion, which is expected to close in the second half of 2025, enhancing its portfolio and service offerings for small businesses [1][2]. Group 1: Acquisition Details - The acquisition is valued at$1.25 billion and is anticipated to close in the second half of 2025, pending customary closing conditions [1]. - This transaction will allow Nationwide to expand its stop loss insurance offerings, which protect employers who self-fund their health insurance plans from excess losses [2][3]. Group 2: Strategic Implications - The acquisition is seen as a strong fit for Nationwide's mission to protect people and businesses, enabling the company to better serve the needs of business owners [2]. - It will broaden Nationwide Financial's portfolio, allowing the company to serve more customers and positioning it as a leading provider in the stop loss industry [3]. - The deal is expected to protect over 13,000 small businesses and complement Nationwide's existing market offerings, accelerating growth opportunities in employer benefits [3]. Group 3: Advisory Roles - Citi is acting as the exclusive financial advisor to Nationwide, while Squire Patton Boggs LLP serves as its legal advisor [4]. - J.P. Morgan and Ardea Partners are acting as financial advisors to Allstate, with Willkie Farr & Gallagher LLP as its legal advisor [4].