American Family Insurance announces agreement to sell The General to Sentry Insurance

American Family Insurance today announced it has signed a definitive agreement with Sentry Insurance for the sale of The General, a subsidiary of American Family Insurance based in Nashville, TN. Sentry will purchase The General for approximately $1.1 billion in cash consideration to American Family Insurance. Including the value of assumed liabilities and required capital, the total transaction value will be $1.7 billion. 

Both companies are committed to executing a smooth transition for customers, partners and employees. Current customers of The General will retain their policies with no change in coverage or service. The transaction is anticipated to close by year end, pending regulatory approval.

American Family Insurance worked with Sentry due to their experience and success in the non-standard auto segment, common mutual company operating model, a shared commitment to the non-standard customer, and their similar values-driven culture. This transaction enhances Sentry’s reach in this market and reinforces its commitment and care for the customers both it and The General serve, which no longer aligns with American Family’s strategic focus.

“We’re proud of the capabilities our enterprise has helped The General build, refine and in some instances, discover, over the past decade-plus,” said Bill Westrate, chair and CEO of American Family Insurance. “As part of our enterprise, The General has grown its revenue more than five-fold, driven consistently profitable business, entered into new states while remaining dedicated and passionate about the customers and market it serves.”

“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.”

“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 Pete McPartland, chairman and CEO of Sentry. “We look forward to getting to know The General’s 1,300 employees who will join Sentry’s 5,000-strong workforce and working with them to continue to grow the business, providing more drivers with the coverage options they need, whether through our independent agents or directly with The General.”

American Family was advised on legal matters by Foley and Lardner LLP and on financial matters by Goldman Sachs & Co. LLC. Sentry was advised on legal matters by Sidley Austin LLP and on financial matters by J.P. Morgan.

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About Sentry
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.