STEVENS POINT, Wis. and MADISON, Wis., Sept. 12, 2024 /PRNewswire/ — Sentry Insurance announced it will acquire The General® from American Family Insurance.
Sentry will purchase The General from American Family Insurance for approximately $1.1 billion in cash consideration. Including the value of assumed liabilities and required capital, the total transaction value will be $1.7 billion. The transaction is expected to close by year-end 2024, pending regulatory approvals.
Sentry, a mutual insurance company known for its expertise in business insurance, also provides comprehensive coverage for non-standard auto (NSA), motorcycle, and off-road vehicles through its Dairyland® brand. Non-standard auto insurance is for drivers who face challenges obtaining standard auto coverage.
“This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the non-standard auto industry,” said Pete McPartland, Chairman and CEO of Sentry. “Together, Dairyland and The General will be better able to meet the specialized needs of even more drivers across the country. It’s an exciting step forward for both companies, and I’m proud of the work our team has done to make this possible.”
“As part of our enterprise, The General has grown its revenue more than fivefold, driven consistently profitable business, entered into new states while remaining dedicated and passionate about the customers and the market it serves,” said Bill Westrate, Chair and CEO of American Family Insurance. “We’ve found a strategic and cultural fit in Sentry, where the growth and momentum that The General has will continue. We’re confident that Sentry’s expertise, strong reputation in this market and employment culture will not only continue to serve The General’s customers well but will also ease the transition for The General’s employees.”
Key Highlights:
- Established Brands: Both The General and Dairyland have served NSA customers for more than 60 years. The General, headquartered in Nashville and acquired by American Family in 2012, has served the market since 1963. Middleton, Wis.-based Dairyland was founded in 1953 and acquired by Sentry in 1966.
- Strategic Fit: The General has built a strong reputation in direct-to-consumer NSA insurance, while Dairyland is known for serving customers through its independent agent network. For customers, this will mean flexibility in choosing how they want to purchase insurance – whether through an agent or directly – and a seamless overall experience, from claims to customer service.
- Parallel Operations: Both brands will continue to operate independently as Sentry and The General work through the integration process.
- Growth and Stability: Approximately 1,300 employees from The General will join Sentry’s 5,000-strong workforce on January 1, 2025. They will continue to be headquartered in Nashville.
Sentry was advised on legal matters by Sidley Austin LLP, with J.P. Morgan acting as financial advisor. American Family was advised on legal matters by Foley and Lardner LLP with Goldman Sachs & Co. LLC acting as financial advisor.
About Sentry Insurance
Sentry Insurance is part of a financially secure mutual insurance group in the United States, holding a Financial Strength Rating of A+ (Superior) from AM Best, as of June 2024. Sentry and its subsidiaries offer property and casualty insurance, life insurance, annuities, and retirement programs for businesses and individuals nationwide. Headquartered in Stevens Point, Wisconsin, Sentry employs 5,000 associates across the country. For a complete list of underwriting companies, visit sentry.com.
About American Family Insurance Group
Based in Madison, Wisconsin, American Family Insurance is a mutual holding company and is the nation’s 12th-largest property/casualty insurance group, ranking No. 243 on the Fortune 500 list. In AM Best’s most recent financial ratings, the credit rating agency affirmed the company’s ‘A’ (excellent) financial strength rating as well as its ‘A+’ issuer credit rating, and included American Family Insurance on its “Standing the Test of Time” list of insurers who have rated ‘A’ or higher for 75 years. The Group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance Group also includes CONNECT, powered by American Family Insurance, The General, Homesite and Main Street America Insurance.
SOURCE Sentry Insurance
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.