STEVENS POINT, Wis. and
MADISON, Wis., Sept. 12, 2024
/PRNewswire/ -- Sentry Insurance announced it will acquire The
General® from American Family Insurance.
This acquisition by Sentry Insurance brings
together two of the strongest brands in the non-standard auto
industry.
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.
Sentry was advised on legal matters by Sidley Austin LLP, with
J.P. Morgan acting as financial advisor. American Family was
advised on legal matters by Foley and Lardner LLP with Goldman
Sachs & Co. LLC acting as financial advisor.
About Sentry Insurance
Sentry Insurance is part of a financially secure mutual
insurance group in the United
States, holding a Financial Strength Rating of A+ (Superior)
from AM Best, as of June 2024. Sentry
and its subsidiaries offer property and casualty insurance, life
insurance, annuities, and retirement programs for businesses and
individuals nationwide. Headquartered in Stevens Point, Wisconsin, Sentry employs 5,000
associates across the country. For a complete list of underwriting
companies, visit sentry.com.
About American Family Insurance Group
Based in Madison,
Wisconsin, American Family Insurance is a mutual holding
company and is the nation's 12th-largest property/casualty
insurance group, ranking No. 243 on the Fortune 500 list. In AM
Best's most recent financial ratings, the credit rating agency
affirmed the company's 'A' (excellent) financial strength rating as
well as its 'A+' issuer credit rating, and included American Family
Insurance on its "Standing the Test of Time" list of insurers who
have rated 'A' or higher for 75 years. The Group sells American
Family-brand products, primarily through exclusive agency owners in
19 states. The American Family Insurance Group also includes
CONNECT, powered by American Family Insurance, The General,
Homesite and Main Street America Insurance.
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SOURCE Sentry Insurance