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
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