The Standard to Acquire Allstate Employer Voluntary Benefits Business; Companies Announce Distribution Partnership

August 13, 2024

PORTLAND, Ore. - StanCorp Financial Group, Inc., (The Standard) and The Allstate Corporation (NYSE: ALL) announced earlier today a definitive agreement under which The Standard will acquire Allstate's Employer Voluntary Benefits business for approximately $2 billion and enter into a product distribution partnership. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.

The Standard and Allstate are leading workplace benefits providers with deep expertise in benefits administration and a shared commitment to customer service. The Standard, a top group life, disability and ancillary benefit provider, was founded in 1906 and sold its first employee benefits policy in 1951, a case that remains in force today. Allstate's Employer Voluntary Benefits business is an industry leader in supplemental and voluntary workplace benefits including Whole Life, Universal Life, Accident, Hospital Indemnity, Cancer and Critical Illness coverage.

"Allstate's Employer Voluntary Benefits business is an excellent fit for The Standard's growing workplace benefits business. We see significant synergies between Allstate's industry-leading supplemental and voluntary life products and our group benefits business," said Dan McMillan, President and CEO of The Standard. "We look forward to welcoming the Allstate EVB employees to The Standard and to a mutually beneficial distribution partnership with Allstate as we move forward."

"Allstate's Employer Voluntary Benefits business provides protection to over 3.5 million customers who will continue to be well served by The Standard," said Tom Wilson, Chair, President and CEO of The Allstate Corporation. "The alignment between Allstate's industry leading product offerings, employer relationships, distribution and talented team and The Standard's group benefits business will provide customers with broader protection and higher value. Allstate agents will now offer a broader array of options to customers under a five-year exclusive distribution arrangement."

Upon closing, The Standard will acquire Allstate's Employer Voluntary Benefits business, employees and operations. The transaction will significantly accelerate The Standard's growth and expand the scale and competitive position of the company's employee benefits business in the U.S.

Under the distribution partnership, The Standard will become Allstate's exclusive carrier for sales of group life and disability, guaranteed standard issue individual disability, supplemental and voluntary products distributed by Allstate's exclusive agents. The acquisition provides a trusted group benefits partner for Allstate's customers.

"The Standard is committed to continued growth and excellence in the group benefits marketplace," said David Payne, Vice President of Employee Benefits at The Standard. "This addition and on-going partnership bring The Standard greater scale and a comprehensive set of workplace benefits offerings for employers of all sizes."

Citi is acting as exclusive financial advisor and Debevoise & Plimpton is acting as legal advisor to The Standard. J.P. Morgan and Ardea Partners are acting as financial advisors and Willkie Farr & Gallagher LLP is acting as legal advisor to Allstate.

About The Standard

The Standard is a family of companies dedicated to helping customers achieve financial well-being and peace of mind. In business since 1906, we are a leading provider of financial protection products and services for employers and individuals. Our products include group and individual disability insurance, group life and accidental death and dismemberment insurance, group dental and group vision insurance, voluntary and supplemental benefits, absence management and paid family leave services, retirement plans products and services and individual annuities. For more information about The Standard, visit standard.com and follow us on LinkedIn.

The Standard is the marketing name for StanCorp Financial Group, Inc., and its subsidiaries: Standard Insurance Company, The Standard Life Insurance Company of New York, Standard Retirement Services, StanCorp Mortgage Investors, StanCorp Investment Advisers, StanCorp Real Estate, StanCorp Equities, Anthem Life Insurance Company, Anthem Life & Disability Insurance Company and Greater Georgia Life Insurance Company.

About Allstate

The Allstate Corporation (NYSE: ALL) protects people from life's uncertainties with a wide array of protection for autos, homes, electronic devices, and identity theft. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online, and at the workplace. Allstate is widely known for the slogan "You're in Good Hands with Allstate." For more information, visit allstate.com.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on allstateinvestors.com.