Sentry Insurance to Acquire The General in Major Deal
In a significant move within the insurance industry, Sentry Insurance, based in Stevens Point, has announced its intention to acquire The General from American Family Insurance for approximately $1.1 billion. This acquisition is poised to reshape the landscape of non-standard auto insurance, combining the strengths of two well-known brands.
According to a press release issued Thursday morning by Sentry Insurance, the total value of the deal, including assumed liabilities and required capital, is expected to reach around $1.7 billion. The completion of this transaction is anticipated by the end of the year, pending necessary regulatory approvals.
Pete McPartland, Sentry’s chairman and CEO, expressed enthusiasm about the acquisition, noting that it marks the largest transaction in the company’s 120-year history. McPartland stated, “It brings together two of the strongest brands in the non-standard auto industry. 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.”
On the other side of the transaction, Bill Westrate, chair and CEO of American Family Insurance, highlighted the impressive growth of The General, which has expanded its revenue more than fivefold since its inception. He praised Sentry as a strategic and cultural fit to continue the growth trajectory that The General has experienced. Westrate remarked, “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.”
The General, originally founded in 1963 under the name Permanent General Agency, is headquartered in Nashville. The company began selling insurance online in 2000 and was acquired by American Family Insurance in 2013. This acquisition by Sentry Insurance is expected to enhance The General’s ability to serve its customers effectively.
Sentry Insurance has a long history of providing comprehensive coverage for non-standard auto, motorcycle, and off-road vehicles through its Dairyland brand. Dairyland, which was established in 1953 and acquired by Sentry in 1966, has a strong reputation in the market.
As part of the acquisition, both Sentry and The General will continue to operate independently as they work through the integration process. Approximately 1,300 employees from The General will join the Sentry team starting January 1, with operations remaining in Nashville.
Customers can expect enhanced flexibility in how they purchase insurance, with options to buy through an agent or directly. This change aims to create a more seamless experience for customers regarding claims and customer service.
