American Family Insurance has announced the sale of its subsidiary, The General, to Sentry Insurance for a cash consideration of approximately $1.1 billion. The definitive agreement marks a significant shift in the insurance landscape, as Sentry Insurance is set to acquire The General, a well-known brand in the non-standard auto insurance market. The total transaction value, including assumed liabilities and required capital, is valued at $1.7 billion.
The deal, anticipated to close by the end of the year pending regulatory approvals, promises a seamless transition for all stakeholders. Customers of The General will experience no changes to their current policies, coverage, or service. This acquisition underscores Sentry’s strategic expansion in the non-standard auto insurance sector and American Family Insurance’s refined focus on its core business objectives.
Bill Westrate
Strategic Alignment and Growth Opportunities
According to Bill Westrate, chair and CEO of American Family Insurance, Sentry Insurance was chosen due to their expertise in the non-standard auto segment, their mutual company operating model, shared values, and commitment to customers in this specific market. He highlighted the successful growth of The General under American Family Insurance’s ownership, noting a five-fold revenue increase and expansion into new states.
“We’re proud of the capabilities our enterprise has helped The General build,” stated Westrate. “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 and strong reputation in this market will not only continue to serve The General’s customers well but will also ease the transition for The General’s employees.”
Sentry Insurance Expands Market Presence
Pete McPartland, chairman and CEO of Sentry, expressed enthusiasm about the acquisition. “The General has built a strong foundation under American Family’s leadership, and we’re excited to take the reins as it joins Sentry,” said McPartland. He further emphasized the welcoming of The General’s 1,300 employees into Sentry’s existing workforce of 5,000, aiming to collectively enhance business growth and provide diverse coverage options to a broader range of drivers through both independent agents and direct channels with The General.
About Sentry and American Family Insurance Group
Sentry Insurance, known for its financial stability, holds an A+ (Superior) Financial Strength Rating from AM Best as of June 2024. As a mutual insurance group based in the U.S., Sentry offers a comprehensive suite of insurance products, including property and casualty, life insurance, annuities, and retirement programs for both businesses and individuals across the nation. Headquartered in Stevens Point, Wisconsin, Sentry employs 5,000 associates.
American Family Insurance Group, based in Madison, Wisconsin, ranks as the nation’s 12th-largest property/casualty insurance group and is positioned at No. 243 on the Fortune 500 list. The group has consistently received high financial strength ratings, including an ‘A’ (excellent) rating from AM Best, and has been recognized for its long-standing financial stability. American Family Insurance Group operates through various brands, including American Family Insurance, CONNECT, The General, Homesite, and Main Street America Insurance, offering a wide array of insurance solutions.
