StanCorp Financial Group, Inc. (The Standard) completed its $2 billion acquisition of Allstate’s employer voluntary benefits business, a transaction originally announced on Aug. 13, 2024.
The deal includes a future distribution partnership through which select products and services from The Standard will be made available to Allstate customers.
The acquisition strengthens The Standard’s position in the workplace benefits market and aligns with its long-term growth strategy.
“This transaction presented a unique opportunity to accelerate our growth strategy and deliver one of the most comprehensive workplace benefits portfolios in the market,” said Dan McMillan, president and CEO of The Standard. “I look forward to welcoming the Allstate employees and customers to The Standard.”
The acquisition adds approximately $2 billion in enterprise value to The Standard’s group benefits division to expand its footprint in the voluntary benefits space, complementing its offerings in disability, life, dental, vision, and paid leave services.
The partnership brings together two established providers in the workplace benefits sector, enhancing capabilities in voluntary benefits and reinforcing a shared focus on customer service.
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Transaction highlights |
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Buyer: The Standard (StanCorp Financial Group, Inc.) |
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Seller: Allstate Corporation |
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Business Acquired: Employer Voluntary Benefits (mainly American Heritage Life) |
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Announced: Aug. 13, 2024 |
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Closed: March 31, 2025 |
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Future Partnership: Distribution of The Standard’s products to Allstate customers |
Allstate chair, president and CEO Tom Wilson said that the sale improves growth prospects for the business while generating substantial value.
The acquired business, largely consisting of American Heritage Life Insurance Company, will continue under the Allstate brand temporarily before transitioning to The Standard. Both companies have committed to a seamless integration process for clients and partners.
Allstate expects to generate $3.25 billion in 2025 through this and its previously announced sale of its group health business. The voluntary benefits transaction produced a financial book gain of approximately $625 million, which supports Allstate’s ongoing capital management strategy, including a recently announced share repurchase program, according to Jess Merten, Allstate’s chief financial officer.
What impact will this acquisition have on the workplace benefits market? Let us know what you think.
