Allstate Sells Employer Voluntary Benefits Unit To StanCorp For $2B: Details
Portfolio Pulse from Lekha Gupta
Allstate Corporation (NYSE:ALL) has agreed to sell its Employer Voluntary Benefits business to StanCorp Financial Group for $2 billion in cash. The sale is expected to generate a $600 million gain and increase deployable capital by $1.6 billion. However, Allstate's adjusted net income return on equity is projected to decrease by approximately 100 basis points. The deal is anticipated to close in the first half of 2025. Additionally, Allstate and StanCorp will form a product distribution partnership. Allstate's stock has gained over 60% in the last 12 months, and investors can gain exposure via Invesco KBW Property & Casualty Insurance ETF (NASDAQ:KBWP) and iShares U.S. Insurance ETF (NYSE:IAK).
August 14, 2024 | 10:44 am
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Allstate Corporation (NYSE:ALL) is selling its Employer Voluntary Benefits business to StanCorp for $2 billion, expected to generate a $600 million gain and increase deployable capital by $1.6 billion. The deal is anticipated to close in the first half of 2025.
The sale will generate significant capital and a substantial gain for Allstate, which is likely to positively impact its stock price in the short term. The stock is already up 1.68% premarket.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
iShares U.S. Insurance ETF (NYSE:IAK) provides exposure to Allstate, which is selling its Employer Voluntary Benefits business to StanCorp for $2 billion. The deal is expected to generate a $600 million gain and increase deployable capital by $1.6 billion.
The ETF holds Allstate, which is positively impacted by the sale. This could lead to a short-term increase in the ETF's value.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Invesco KBW Property & Casualty Insurance ETF (NASDAQ:KBWP) provides exposure to Allstate, which is selling its Employer Voluntary Benefits business to StanCorp for $2 billion. The deal is expected to generate a $600 million gain and increase deployable capital by $1.6 billion.
The ETF holds Allstate, which is positively impacted by the sale. This could lead to a short-term increase in the ETF's value.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50