Insurer Allstate Corp. is acquiring National General Holding for $4 billion in cash to expands its auto Insurance business. National General Shareholders will get $32 per share that they hold plus closing dividends of about $2.5 per share for a total of about $34.50 each.
New York based National General lists automobile insurance as its chief business, and offers services in personal auto, recreational vehicle, two-wheeler and commercial auto businesses.
Allstate, which is also one of the leading U.S auto Insurer , said in April that it would return more than $600 million in premiums to customers as many Americans were driving about 40% to 55% less due to coronavirus pandemic and lockdown.
Allstate said the deal is expected to close in early 2021 and will add to its adjusted earnings per share and return on equity beginning the first year
Allstate’s Chief Executive Officer Tom Wilson said “Acquiring National General accelerates Allstate’s strategy to increase market share in personal property-liability and significantly expands our independent agent distribution”
The board of National general Holdings Corp. has already approved the million dollar deal , which is expected to close in early 2021. The Insurer said that no fewer than 40% of its voting shares have also committed to approve that deal.
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