Allstate announces its agreement for SafeAuto acquisition

SafeAuto acquisition - business deal - contract

The insurer’s subsidiary National General will be acquiring the low-cost auto insurance carrier.

Allstate has announced that it has come to an agreement for a SafeAuto acquisition through its subsidiary, National General.

This purchase will help Allstate to expand a spectrum of its capabilities and distribution.

Through the SafeAuto acquisition, Allstate will add the auto insurer’s capabilities and distribution to its own offering, including its 24/7 customer contact centers at SafeAuto’s 1-800 number, as well as through its website. By bringing the low-cost auto insurer into National General, it will enhance the direct-to-consumer, non-standard vehicle coverage operations, while working with National General’s strong record of acquisitions and integrations of other companies for boosting its growth rate.

“I am confident that combining forces with National General with the backing of Allstate will allow SafeAuto to grow its platform in the non-standard space. I wish to thank all of our past and present associates for their contributions to our success during our 27-year history,” said SafeAuto co-founder and chair Ari Deshe.

The SafeAuto acquisition will combine the insurer’s strengths with Allstate and National General.

“It has been an honor to have worked with so many these past 27 years building SafeAuto into a company dedicated to making the purchase of auto insurance easy and affordable. We are delighted to turn the reins over to Allstate and National General, which together, will take Playing It Safe with SafeAuto to the next level,” said SafeAuto co-founder and vice chair Jon Diamond.

Adding to that, the SafeAuto CEO for the last nine years – also a former Allstate employee – Ron Davies said, “I am excited to see SafeAuto join the Allstate family and National General. Allstate is an iconic brand with superb capabilities and people that will enable SafeAuto to more rapidly scale and serve even more consumers.”

The SafeAuto acquisition by Allstate’s National General subsidiary must still undergo regulatory approvals and must satisfactorily meet typical closing conditions SafeAuto acquisition - business deal - contractbefore the deal closes. That said, there aren’t any anticipated hiccups that would present barriers. The closing is expected to occur before the end of this year’s third quarter.

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