Northbrook-based insurance company Allstate is buying National General Holdings for $4 billion in cash, expanding the scope of its insurance holdings.
Shareholders of New York-based National General will get $32 per share that they hold, plus closing dividends of about $2.50 per share, for a total of about $34.50 each.
National General had gross premiums of $5.6 billion in 2019, generating operating income of $319 million in 2019 from a range of property-liability coverage including "non-standard" auto insurance.
Allstate said that National General's business and technology will bolster its existing independent agent businesses. The acquisition will increase Allstate's personal lines premiums by $4 billion and market share by more than one percentage point to 10%.
The board of National General Holdings Corp. has already approved the deal, which is expected to close in early 2021. The New York insurer said that no fewer than 40% of its voting shares have also committed to approve the deal.