Allstate Agrees To Sell The Employer Voluntary Benefits Business To StanCorp Financial Group For $2.0B
Portfolio Pulse from Benzinga Newsdesk
Allstate has agreed to sell its employer voluntary benefits business to StanCorp Financial Group for $2.0 billion. The sale is expected to generate a gain of about $600 million and increase deployable capital by $1.6 billion. However, Allstate's adjusted net income return on equity will decline by about 100 basis points following the sale, which is expected to close in the first half of 2025.
August 13, 2024 | 10:12 pm
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Allstate is selling its employer voluntary benefits business to StanCorp Financial Group for $2.0 billion. The sale will generate a $600 million gain and increase deployable capital by $1.6 billion, but will reduce adjusted net income return on equity by 100 basis points.
The sale will provide Allstate with significant capital gains and increased deployable capital, which is positive for the company's financial health. However, the decline in adjusted net income return on equity is a slight negative. Overall, the impact is likely positive in the short term.
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