US primary insurer Allstate Corporation has agreed to acquire SafeAuto, a non-standard auto insurance carrier focused on providing state-minimum private-passenger auto insurance.
Total consideration includes a $270 million cash purchase price plus approximately $30 million in pre-close dividends of certain non-insurance assets.
Headquartered in Columbus, Ohio, SafeAuto is expected to add capabilities and distribution to the non-standard auto insurance operations of Allstate’s National General business.
“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 at Allstate.
“SafeAuto will accelerate our strategy of offering affordable protection solutions by lowering costs and lead to higher growth,” said Peter Rendall, President, National General, Property and Casualty.
“The acquisition and integration capabilities of National General, combined with the backing and capital of Allstate, will enable us to serve more customers,” added Ron Davies, Chief Executive Officer at SafeAuto.
“Allstate is an iconic brand with superb capabilities and people that will enable SafeAuto to more rapidly scale and serve even more consumers.”
Ari Deshe, Co-Founder and Chairman of SafeAuto, further stated: “I am confident that combining forces with National General with the backing of Allstate will allow SafeAuto to grow its platform in the non-standard space. I wish to thank all of our past and present associates for their contributions to our success during our 27-year history.”
And Jon Diamond, Co-Founder and Vice Chairman of SafeAuto, also commented: “It has been an honor to have worked with so many these past 27 years building SafeAuto into a company dedicated to making the purchase of auto insurance easy and affordable. We are delighted to turn the reins over to Allstate and National General, which together, will take Playing It Safe with SafeAuto to the next level.”
The transaction is expected to close by the end of the third quarter of 2021, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions.
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to SafeAuto in the transaction.