Nationwide's headquarters in Columbus, Ohio. Credit: JHVEPhoto/Adobe Stock
Nationwide has agreed to buy the Allstate Corp. employer stop-loss business for $1.25 billion, the company announced Tuesday.
The transaction is expected to close in the second half of this year, according to Nationwide.
Lindsey Murray, the former chief operating officer of Allstate Health, has joined Nationwide. She will lead Nationwide's new Nationwide Group Benefits segment.
"For more than 20 years, Nationwide has been protecting companies who self-fund their health insurance plans from excess losses with stop loss solutions,” Murray said.
“This industry-leading team is already known for its reliability, stability and financial strength," she added.
Murray has been the executive vice president of the product, pricing and underwriting team at Allstate's health and benefits division. While there, she oversaw the voluntary benefits, individual health and group health business lines.
The Allstate transaction will expand Nationwide's ability to sell stop-loss insurance to small businesses, Nationwide said.
In June, Allstate estimated that it had suffered $777 million in catastrophe losses.
Allstate expects to report its second-quarter earnings July 31.
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