American Family Insurance is selling Nashville, Tennessee-based The General to Sentry Insurance for $1.7 billion, the Wisconsin State Journal reports. The Madison-based insurance company recently signed a definitive agreement, and the deal is anticipated to close by the end of the year, pending regulatory approval.
In 2012, American Family acquired The General, which covers the nonstandard auto insurance segment for drivers who are considered higher risk, but AmFam says this segment “no longer aligns with American Family’s strategic focus.”
Stevens Point-based Sentry, meanwhile, serves the segment with its Middleton-based Dairyland unit. It will buy The General for roughly $1.1 billion in cash, with required capital and assumed liabilities nudging the value of the deal up to $1.7 billion. Both Sentry and The General will keep operating as separate brands while they work through the integration progress.
