MReport August 2020

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42 | M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION Allstate to Acquire National General Holdings The $4B deal includes National General Lenders Services—the second largest provider of lender-placed insurance and tracking services for mortgage lenders. A ccording to numerous reports, the Allstate Corporation will acquire National General Holdings Corp. for $4 billion. Allstate will acquire National General Holdings Corp. in its entirety, which includes National General Lender Services. National General is the second largest provider of lender-placed insur- ance and direct tracking services for mortgage lenders and servicers nationwide. National General will become part of one of the largest insurers in the world. ABC News reported that the National General Holdings Corp. has already approved the deal, which is expected to close in early 2021. National General said that no fewer than 40% of its voting shares have also committed to approving the deal. ABC News added that Allstate, based in Northbrook, Illinois, said that National General's business and technology will bolster its ex- isting independent agent business- es. The acquisition will increase Allstate's personal lines premiums by $4 billion and market share by more than one percentage point to 10%. "Acquiring National General accelerates Allstate's strategy to increase market share in personal property-liability and significantly expands our independent agent distribution," said Tom Wilson, Chair, President, and CEO in a release. "The acquisition increases personal lines premiums by $4.0 billion and market share by over 1 percentage point to 10%. National General's business and technol- ogy platforms will be utilized to further strengthen Allstate's exist- ing independent agent businesses. The transaction will be accretive to adjusted net income earnings per share and return on equity begin- ning in the first year." "National General's operating expertise has enabled us to serve customers and independent agents well as we have grown both organically and through acquisi- tion," said Barry Karfunkel, Co- Chairman and CEO of the New York-based insurer. "We are excited about combining our team's exper- tise and commitment with Allstate to become a top-five personal lines carrier for independent agents while offering a broader array of products. National General's shareholders are also benefiting by unlocking the value created over the last decade." The announcement also noted that the deal had the support of SD Capital, owner of "approxi- mately 7.4% of National General's outstanding common shares." "As proud shareholders since 2013, we support the decision of National General's board of direc- tors to move forward with this strategic transaction," said John Phelan, Managing Partner and Co- Founder of MSD Capital, LP and MSD Partners, LP. "We believe the transaction is allowing National General's em- ployees, customers, and sharehold- ers to benefit from the significant franchise value created by the management team over the last de- cade," added Dan Bitar, a Managing Director of MSD Capital.

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