Mutual insurance company Sentry Insurance is acquiring The General, a non-standard auto (NSA) insurance provider, from American Family Insurance in a deal valued at $1.7 billion.
The sum includes a cash consideration of $1.1 billion, plus assumed liabilities and required capital. The transaction is slated to close by the end of 2024, pending regulatory approval.
With a long history in business insurance, Sentry also operates Dairyland, which offers NSA insurance as well as coverage for motorcycles and off-road vehicles. The swoop for The General is set to bolster Sentry’s position in the NSA market.
Pete McPartland (pictured), chair and chief executive of Sentry, noted: “This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the non-standard auto industry.
“Together, Dairyland and The General will be better able to meet the specialized needs of even more drivers across the country. It’s an exciting step forward for both companies, and I’m proud of the work our team has done to make this possible.”
The General, which has been a part of American Family since 2012, has seen significant growth under the latter’s ownership.
American family chair and CEO Bill Westrate highlighted: “As part of our enterprise, The General has grown its revenue more than fivefold, driven consistently profitable business, entered into new states while remaining dedicated and passionate about the customers and the market it serves.
“We’ve found a strategic and cultural fit in Sentry, where the growth and momentum that The General has will continue.”
Founded in 1963 and headquartered in Nashville, The General has built a reputation in direct-to-consumer NSA insurance. In contrast, Dairyland, established in 1953 before joining Sentry in 1966, is known for its independent agent network.
Under the deal, approximately 1,300 The General colleagues will join Sentry’s existing staff of 5,000. The transition of employees will take effect on January 1, 2025.
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