The Allstate Corp. [NYSE: ALL] has agreed to buy National General Holdings Corp. for about $4 billion in cash or $34.50 per shares. The deal is anticipated to close in early 2021. The acquisition increases personal lines premiums by $4.0 billion and market share by over 1 percentage point to 10%.
National General offers a wide range of property liabilities through independent agents with a significant presence in non-standard auto insurance. The firm also has an attractive accident and health and lending insurance businesses. The total gross premium was recorded at 5.6 billion, resulting in $319 million in operating income in 2019.
National General Corp. has operating expertise which enabled National General to serve its customers properly. As per the deal, the shareholders of the National General will receive $32.00 per share in cash from Allstate. It is expected that the total dividend will be $2.50 per share. The Allstate Corp. safeguards people from life’s uncertainties with more than 153.7 million propriety policies.
Shares of Allstate Corp. had tumbled down 3.13% and down -2.99 during the last trading session of Tuesday. Its closing price is $92.65. ALL had a trading volume of 1.29 million as compared to the average volume of 2.08 million.
Allstate Corp. has Operating Margin of 11.70%, profit margin of $9.00%. Its return on assets, investment and equity is $3.30%, 16.00% and 17.20%, respectively.