Allstate acquires SafeAuto in all-cash transaction
NORTHBROOK -- Allstate Corp. has agreed to acquire SafeAuto, a nonstandard auto insurance carrier, for $270 million plus approximately $30 million in pre-close dividends of certain non-insurance assets.
SafeAuto focuses on providing state-minimum, private-passenger auto insurance with coverage options in 28 states.
SafeAuto, headquartered in Columbus, Ohio, will add capabilities and distribution to Allstate's National General subsidiary, and leverage National General's track record of acquiring and integrating companies to accelerate growth, Allstate said.
"The acquisition and integration capabilities of National General, combined with the backing and capital of Allstate, will enable us to serve more customers," said Ron Davies, chief executive officer, SafeAuto. The transaction is expected to close near the end of the third quarter, subject to regulatory approval and customary closing conditions.
"National General's integration of Allstate's independent agent businesses has made excellent progress, and the team has the capacity to integrate SafeAuto into its direct insurance business," said Glenn Shapiro, president, personal property-liability, of Allstate.