The Standard Finalizes $2 Billion Acquisition of Allstate’s Voluntary Benefits Business
StanCorp Financial Group, Inc., known as The Standard, has successfully concluded its $2 billion acquisition of Allstate’s employer voluntary benefits division, a strategic move first unveiled on August 13, 2024. This landmark deal includes a future distribution partnership, enabling The Standard to offer selected products and services to Allstate’s customer base.
The acquisition significantly bolsters The Standard’s capabilities in the workplace benefits sector, aligning perfectly with its long-term growth objectives. Dan McMillan, president and CEO of The Standard, stated, “This transaction offers a distinctive opportunity to accelerate our growth strategy, providing one of the most comprehensive workplace benefits portfolios available today. We eagerly anticipate embracing Allstate employees and customers into The Standard family.”
This acquisition enhances The Standard’s group benefits division with an approximate $2 billion in enterprise value, expanding its presence in the voluntary benefits arena. It complements existing services in disability, life, dental, vision, and paid leave offerings.
The partnership unites two renowned providers in the workplace benefits industry, enhancing expertise in voluntary benefits and reinforcing a mutual commitment to exceptional customer service.
Transaction Highlights
Buyer: The Standard (StanCorp Financial Group, Inc.)
Seller: Allstate Corporation
Business Acquired: Employer Voluntary Benefits (primarily American Heritage Life)
Announced: August 13, 2024
Closed: March 31, 2025
Future Partnership: Distribution of The Standard’s products to Allstate customers
According to Allstate’s chair, president, and CEO Tom Wilson, the sale enhances growth prospects while generating substantial value. The acquired business, mainly comprising American Heritage Life Insurance Company, will initially continue under the Allstate brand before transitioning to The Standard. Both organizations are dedicated to ensuring a seamless integration for clients and partners.
Allstate anticipates generating $3.25 billion in 2025 through this transaction and the previously announced sale of its group health business. The voluntary benefits sale resulted in a financial book gain of about $625 million, supporting Allstate’s ongoing capital management initiatives, including a recently unveiled share repurchase program, as stated by Jess Merten, Allstate’s chief financial officer.
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