Here’s a round-up of this month’s latest insurance industry-related M&As and partnerships.
Allstate sells life insurance business
Allstate is selling Allstate Life Insurance Co. to entities managed by Blackstone Group Inc. as a part of its strategy to focus on growing market share in personal lines and P&C. This sale gives more transparency to the core protection business. This deal will help Blackstone expand further into life insurance and annuities, and in return, Blackstone will enter into an asset management agreement to help oversee the life business’s portfolio. This sale does not include Allstate Life Insurance Company of New York (ALNY), and is actively looking into alternatives to sell or transfer the risk to a third party. This sale is expected to close in the second quarter of 2021.
Nationwide and Walmart partner up on pet insurance
Nationwide Pet Rx Express gives pet insurance members access to affordable pet prescription medicines and provides customers with a faster, in-store claims experience. This will be the first time in the pet health insurance industry to have access to preferred pricing and claims covered for drugs processed at the counter of a major retail pharmacy, giving Nationwide members access to Walmart’s most commonly prescribed pet-specific medications.
MassMutual acquires Great American Life Insurance
Massachusetts Mutual Life Insurance Company announced its purchase of Great American Life Insurance Group. Great American Life is a leader in the annuity market, known for its competitive product suite, customer service and deep distribution relationships with banks and broker-dealers. The company will operate as an independent subsidiary of MassMutual, allowing MassMutual to broaden its product offerings and investment capabilities. This transaction is expected to close in the second quarter of 2021.
Amazon partners with Netradyne
Amazon announced plans to equip delivery vans with Netradyne’s AI-equipped cameras to help improve safety in its delivery network. Cameras record drivers 100% of the time while on route and flag unsafe driving behavior. The cameras provide drivers real-time feedback and collect analysis that is used to later evaluate drivers during their shifts. Netradyne is the first company to merge AI with video with an aim of reducing collisions.
Metromile goes public
Metromile announced a merger with INSU Acquisition Corp. II to become a publicly listed company without the risk of IPO. The combined company is named Metromile, Inc., and is under the NASDAQ ticker symbol “MILE.” This action Metromile also recently attracted a new board member and investment from Uber’s former senior vice president of global operations.
Progressive acquires Protective Insurance
Progressive acquired trucking-focused commercial auto coverage provider Protective Insurance, with the intent to expand capabilities and offer additional product lines. This move will allow Progressive to support larger fleets and bring in expertise in workers’ compensation coverage for the transportation industry. The acquisition is expected to close before the end of the third quarter.
Hippo partners with ADT on smart home services
ADT announced a partnership with Hippo to bring homeowners greater ways to save on homeowners’ insurance and offer better home protection. In select states, ADT’s existing customers could receive smart home discounts on premiums offered through Hippo Insurance Services, and customers of both companies can receive ADT’s most advanced smart home security system.
Ford partners with Arity
Drivers of Ford and Lincoln connected cars can opt into having Arity score their data for UBI purposes. Arity is a telematics-data division of Allstate that provides a view into a driver’s habits for rating purposes. It’s the first telematics service provider that Ford has partnered with. Ford currently has integrated insurance programs with State Farm, Allstate, Liberty Mutual and Metromile, and is a member of Verisk’s telematics data exchange.