Sentry Insurance to acquire The General from American Family Insurance
www.insurancenewsnet.com, September 13, 2024
STEVENS POINT, Wis. and MADISON, Wis., Sept. 12, 2024 /PRNewswire/ -- Sentry Insurance announced it will acquire The General from American Family Insurance.
Sentry will purchase The General from American Family Insurance for approximately $1.1 billion in cash consideration. Including the value of assumed liabilities and required capital, the total transaction value will be $1.7 billion. The transaction is expected to close by year-end 2024, pending regulatory approvals.
Sentry, a mutual insurance company known for its expertise in business insurance, also provides comprehensive coverage for non-standard auto (NSA), motorcycle, and off-road vehicles through its Dairyland® brand. Non-standard auto insurance is for drivers who face challenges obtaining standard auto coverage.
"This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the non-standard auto industry," said Pete McPartland, Chairman and CEO of Sentry. "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."
"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," said Bill Westrate, Chair and CEO of American Family Insurance. "We've found a strategic and cultural fit in Sentry, where the growth and momentum that The General has will continue. We're confident that Sentry's expertise, strong reputation in this market and employment culture will not only continue to serve The General's customers well but will also ease the transition for The General's employees."
Key Highlights:
Established Brands: Both The General and Dairyland have served NSA customers for more than 60 years. The General, headquartered in Nashville and acquired by American Family in 2012, has served the market since 1963. Middleton, Wis.-based Dairyland was founded in 1953 and acquired by Sentry in 1966.
Strategic Fit: The General has built a strong reputation in direct-to-consumer NSA insurance, while Dairyland is known for serving customers through its independent agent network. For customers, this will mean flexibility in choosing how they want to purchase insurance – whether through an agent or directly - and a seamless overall experience, from claims to customer service.
Parallel Operations: Both brands will continue to operate independently as Sentry and The General work through the integration process.
Growth and Stability: Approximately 1,300 employees from The General will join Sentry's 5,000-strong workforce on January 1, 2025. They will continue to be headquartered in Nashville.
News article: https://insurancenewsnet.com/oarticle/sentry-insurance-to-acquire-the-general-from-american-family-insurance