DOW JONES NEWSWIRES
Allstate Corp. (ALL) and Discover Financial Services (DFS) said
they had entered an agreement in which Discover will buy
substantially all of Allstate's bank deposits.
The companies called the deal a "multi-year distribution and
marketing agreement." As part of the agreement, Allstate agents and
affiliates will offer personal savings and money-market accounts as
well as other financial services to their customers through
Discover.
Financial terms of the deal weren't given. The deal is expected
to close by midyear.
"Allstate Financial has refocused on insurance, retirement and
investment products. That, combined with the changing regulatory
environment, led us to the determination that operating Allstate
Bank is no longer core to our long-term strategy," said Matthew
Winter, the president and chief executive of Allstate
Financial.
The companies said the transfer of deposits won't affect
insurance policies or other non-banking products that customers
have with Allstate.
Shares of Discover and Allstate closed at $21.47 and $32.56,
respectively, and were inactive after hours.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com