Allstate Closes Purchase of American Heritage Life Investment Corp. to Enter Work-Site Marketing Arena

Nov 01, 1999, 00:00 ET from Allstate Corporation

    NORTHBROOK, Ill., Nov. 1 /PRNewswire/ -- The Allstate Corporation
 (NYSE:   ALL) announced today that it has completed its previously announced
 acquisition of  American Heritage Life Investment Corporation (NYSE:   AHL), the
 third largest work-site marketer of life, disability and health insurance in
 the country.  The deal, valued at $1.1 billion, supports Allstate Life and
 Savings' strategy to grow life insurance sales through new products and
 distribution channels.  The purchase further broadens and strengthens
 Allstate's multi-channel, multi-product, and multi-brand strategy.
     American Heritage Life Investment Corp. (AHLIC) shareholders
 overwhelmingly supported the acquisition with more than 99 percent of the
 total votes cast in favor of the transaction.  AHLIC shareholders will receive
 $32.25 for each AHLIC share, receivable in Allstate shares, cash or a
 combination.  In addition, Allstate will assume AHLIC's debt obligations under
 its outstanding mandatorily redeemable preferred securities.
     American Heritage Life Insurance Company, which is the principal
 subsidiary of AHLIC, is the unit responsible for marketing the work-site life,
 disability and health insurance products.
     "Bringing together American Heritage Life's well-respected management and
 expertise in work-site marketing with Allstate's capital and expansive agent
 network will allow us to dramatically grow this company," said Edward
 M. Liddy, Allstate's chairman, president and chief executive officer. "We plan
 to take American Heritage Life from a regional to a national leader in
 work-site marketing. "
     In 1998, American Heritage Life Insurance had revenues of $480 million and
 recorded an operating profit of $36.4 million.
     "The work-site market is expected to grow 10 to 15 percent annually over
 the next decade.  A combination of American Heritage Life and Allstate will
 enable us to take advantage of this growth as well as increase our market
 share," said Tom Wilson, president, Allstate Life and Savings.  "American
 Heritage Life Insurance's existing management will continue to run the
 business and its headquarters will remain in Jacksonville, Florida."
     "The opportunities for growth as a member of the Allstate group are why
 this merger took place.  Now it is time to capitalize on those opportunities,"
 said C. Richard Morehead, president and chief executive officer, American
 Heritage Life.
     This transaction follows the announcement of Allstate Life and Savings'
 strategic alliance with Putnam Investments under which the companies
 introduced the new Putnam Allstate Advisor variable annuity in May 1999.  In
 addition, on October 1, Allstate closed the purchase of CNA Personal Lines as
 a part of its new initiative to become the leading provider of personal lines
 insurance in the independent agent market.
     American Heritage Life Insurance is licensed to conduct business in
 49 states, the District of Columbia and Puerto Rico.  It focuses primarily on
 the sale of products to workers in companies with fewer than 1,000 employees.
 These average to small size companies employ some 87 percent of the American
     The Allstate Corporation is the nation's largest publicly held personal
 lines insurance company.  Its main business units include Allstate Personal
 Property and Casualty, which provides insurance for more than 14 million
 households and has approximately 15,500 agents in the U.S. and Canada, and
 Allstate Life and Savings, which markets a number of life insurance and
 savings products under a variety of brands through a number of channels and is
 currently the nation's 17th largest life insurance business.

SOURCE Allstate Corporation