Wintrust purchases $570 million Allstate loan portfolio

ROSEMONT — Wintrust Financial Corp. and its Lake Forest Bank & Trust Co. subsidiary Monday said they have agreed to purchase approximately $570 million of loans from Allstate Corp. The portfolio is comprised of approximately 1,800 loans to Allstate agents nationally, which agents use to establish and grow their businesses, as well as meet other working capital needs.

In addition to acquiring the loans, Wintrust has agreed to become the national preferred provider of loans to Allstate agents. Allstate agents will have expanded lending options and services through Wintrust and be supported with its lending services. A team of Allstate agency lending specialists will join the Wintrust team to augment and expand Wintrust's existing insurance agency finance business.

The transaction is expected to close in November. The insurer is based in Northbrook.

“Wintrust is excited to work with Allstate to acquire the agency loans and looks forward to serving Allstate agents going forward,” said Edward J. Wehmer, founder and chief executive officer of Wintrust. “This portfolio and the related ongoing opportunity is a great fit with our existing insurance finance business. It's also an example of two great Chicago companies coming together to serve the needs of their stakeholders.”