Sentry Insurance, a mutual insurance company known for its business insurance expertise, has announced plans to acquire
The General from American Family Insurance in a deal valued at $1.7 billion. The acquisition, which is expected to close by the end of 2024 pending regulatory approvals, will expand Sentry’s reach in the non-standard auto insurance market.
Under the terms of the agreement, Sentry will purchase The General for approximately $1.1 billion in cash consideration.
The total transaction value, including assumed liabilities and required capital, will be $1.7 billion.
“This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the non-standard auto industry,” said Pete McPartland, Chairman and CEO of Sentry. “Together, Dairyland and The General will be better able to meet the specialized needs of even more drivers across the country.”
The General, headquartered in Nashville, Tennessee, has served the non-standard auto insurance market since 1963.
American Family Insurance, which acquired The General in 2012, has seen the company grow its revenue more than fivefold while maintaining a strong focus on its customers and the market it serves.
“As part of our enterprise, The General has grown its revenue more than fivefold, driven consistently profitable business, entered into new states while remaining dedicated and passionate about the customers and the market it serves,” said Bill Westrate, Chair and CEO of American Family Insurance. “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.”
Both The General and Sentry’s Dairyland brand, which specializes in non-standard auto, motorcycle, and off-road vehicle insurance, have served customers in this market for more than 60 years. Dairyland, based in Middleton, Wisconsin, was founded in 1953 and acquired by Sentry in 1966.
The acquisition will bring together two complementary business models, with The General known for its direct-to-consumer approach and Dairyland serving customers through independent agents. This will provide customers with flexibility in how they purchase insurance while ensuring a seamless experience from claims to customer service.
During the integration process, both brands will continue to operate independently. Approximately 1,300 employees from The General will join Sentry’s workforce of 5,000 on January 1, 2025, and will remain headquartered in Nashville.
