Allstate completes $1.25 billion sale of group health business to Nationwide

By Isha Marathe

July 2 - (The Insurer) - Allstate has completed the sale of its group health business for $1.25 billion in cash, adjusted for the closing balance sheet.

The deal, which was announced in January, is expected to generate a financial book gain of approximately $500 million.

“The sale delivers strong shareholder value and improves growth opportunities for group health by joining Nationwide’s stop-loss insurance business,” said Tom Wilson, chair, president and CEO of Allstate.

“Selling the group health and employer voluntary benefits businesses for a combined $3.25 billion demonstrates the strength of these businesses and Allstate’s strategic approach to capital management.”