Insurer Allstate to buy National General for about $4B

National General's shareholders will receive $32 per share in cash and closing dividends of $2.50 per share for each share held

Allstate Corp said on Tuesday it will buy National General Holdings Corp for about $4 billion in cash as the U.S. insurer looks to expand its market share in personal lines insurance business.

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National General's shareholders will receive $32 per share in cash and closing dividends of $2.50 per share for each share held. This would imply a total deal value of $3.92 billion and a premium of about 69% to National General's Tuesday close, Reuters calculations showed.

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Allstate, one of the largest U.S. auto insurers, said the deal is expected to close in early 2021 and will add to its adjusted earnings per share and return-on-equity beginning the first year.

TickerSecurityLastChangeChange %
NGHCNATIONAL GENERAL HLDGS CO34.16+0.04+0.12%
ALLTHE ALLSTATE CORPORATION96.23-0.60-0.62%

"Acquiring National General accelerates Allstate's strategy to increase market share in personal property-liability and significantly expands our independent agent distribution," Allstate Chief Executive Officer Tom Wilson said.

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The deal has been approved by National General's board, Allstate said, adding that it included a breakup fee of $132.5 million.

Ardea Partners was the financial adviser to Allstate, while J.P. Morgan Securities LLC advised National General.

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(Reporting by Shubham Kalia in Bengaluru, Editing by Sherry Jacob-Phillips)