Nationwide to acquire Allstate's employer stop loss for $1.25B

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Nationwide announced an agreement to acquire Allstate's employer stop loss segment for $1.25 billion, according to a press release. The acquisition will likely close in the second half of the year.

Nationwide CEO Kirt Walker, said in a statement: "As Nationwide continues to focus on our mission to protect people, businesses and futures with extraordinary care, this acquisition is a strong fit. We are extending our protection solutions to meet the needs of business owners today and into the future."

The new business lays a foundation for Nationwide to grow its employer benefits capabilities, according to the release. 

John Carter, president and chief operating officer of Nationwide Financial, said in a statement: 

"Acquiring Allstate's employer stop loss segment will broaden Nationwide Financial's portfolio, meeting the needs of small businesses, allowing us to serve more customers and positioning us as a leading provider in the stop loss industry. This represents a significant investment in the stop loss market, adding experienced talent with proven business results, protecting over 13,000 small businesses and complementing our existing offerings in the market while accelerating our opportunity for growth."

Citi is acting as financial advisor and Squire Patton Boggs is legal advisor to Nationwide. J.P. Morgan and Ardea Partners are acting as financial advisors and Willkie Farr & Gallagher is legal advisor to Allstate.