StanCorp Financial Group and The Allstate Corporation announced a definitive agreement under which The Standard will acquire Allstate’s Employer Voluntary Benefits business for approximately $2 billion and enter into a product distribution partnership. The deal is expected to close in the first half of next year, subject to regulatory approvals and other customary closing conditions.
The Standard and Allstate are known as leading workplace benefits providers with deep expertise in benefits administration. The Standard, a top group life, disability and ancillary benefit provider, was originally founded in 1906 and sold its first employee benefits policy in 1951, which is a case that remains in force today. And Allstate’s Employer Voluntary Benefits business is an industry leader in supplemental and voluntary workplace benefits, including Whole Life, Universal Life, Accident, Hospital Indemnity, Cancer and Critical Illness coverage.
Upon the closing of the deal, The Standard will acquire Allstate’s Employer Voluntary Benefits business, employees and operations. This deal will significantly accelerate The Standard’s growth and expand the scale and competitive position of the company’s employee benefits business in the U.S.
Under a new distribution partnership, The Standard will become Allstate’s exclusive carrier for sales of group life and disability, guaranteed standard issue individual disability, supplemental and voluntary products distributed by Allstate’s exclusive agents. The acquisition provides a trusted group benefits partner for Allstate’s customers.
Citi is acting as exclusive financial advisor and Debevoise & Plimpton is acting as legal advisor to The Standard. And J.P. Morgan and Ardea Partners are acting as financial advisors and Willkie Farr & Gallagher LLP is acting as legal advisor to Allstate.
KEY QUOTES:
“Allstate’s Employer Voluntary Benefits business is an excellent fit for The Standard’s growing workplace benefits business. We see significant synergies between Allstate’s industry-leading supplemental and voluntary life products and our group benefits business. We look forward to welcoming the Allstate EVB employees to The Standard and to a mutually beneficial distribution partnership with Allstate as we move forward.”
– Dan McMillan, President and CEO of The Standard
“Allstate’s Employer Voluntary Benefits business provides protection to over 3.5 million customers who will continue to be well served by The Standard. The alignment between Allstate’s industry leading product offerings, employer relationships, distribution and talented team and The Standard’s group benefits business will provide customers with broader protection and higher value. Allstate agents will now offer a broader array of options to customers under a five-year exclusive distribution arrangement.”
– Tom Wilson, Chair, President and CEO of The Allstate Corporation
“The Standard is committed to continued growth and excellence in the group benefits marketplace. This addition and on-going partnership bring The Standard greater scale and a comprehensive set of workplace benefits offerings for employers of all sizes.”
– David Payne, Vice President of Employee Benefits at The Standard
