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updated: 7/8/2020 4:39 PM

Allstate acquires National General for $4 billion in cash

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  • Northbrook-based Allstate has agreed to acquire National General Holdings Corp. for $4 billion in cash as it expands its insurance portfolio.

    Northbrook-based Allstate has agreed to acquire National General Holdings Corp. for $4 billion in cash as it expands its insurance portfolio.
    AP Photo/Nam Y. Huh, File

 
Associated Press

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.