The insurer is expanding its ability to cover consumers against growing ad increasingly common risks.
The Allstate Corporation is upping its presence in identity protection with a new agreement for InfoArmor, Inc. acquisition. This deal gives the insurance company the opportunity to raise its potential within this market.
Identity theft is a growing area of concern among consumers who want to protect themselves.
InfoArmor is a leading employee identity protection provider. It currently protects over 1 million employees and the members of their families. It covers the workers at over 1,400 companies. This includes over 100 firms among the Fortune 500. Based in Scottsdale, Arizona, the company is privately held and has agreed to be acquired by Allstate for $525 million, all cash. The close is expected to take place before the end of 2018.
“Consumers are increasingly at risk of having their digital identities compromised. Last year there were over 16 million victims of identity fraud, which resulted in over $16 billion of losses,” said Allstate president, chairman and CEO, Tom Wilson. “With the acquisition of InfoArmor, Allstate will protect more customers from this risk and help rebuild their lives after they have been hacked.”
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The acquisition provides an instant powerful identity protection expansion for the Allstate Benefits business.
Wilson called InfoArmor the “go-to identity protection company” within the marketplace for employee benefits. Allstate Benefits already serves more than 4 million employees even before the million InfoArmor will bring to its total.
The combination of the two firms has the potential to be a powerful one for adding protection to voluntary benefits programs, said InfoArmor’s CEO John Schreiber. “Our relationships with top benefit brokers and over 1,000 companies will be enhanced by Allstate’s capabilities and access to the Allstate Benefits distribution network.”
That said, it’s important to note that the identity protection agreement is not yet complete. Allstate must still obtain regulatory approvals for the transaction, as well as complete certain closing conditions that are typical to this type of deal. The insurance giant has shared a presentation including additional information about this transaction on its AllstateInvestors.com site.