The Allstate Corporation has reached a definitive agreement to sell its group health business to Nationwide for $1.25 billion in cash, subject to adjustments based on the closing balance sheet and standard closing conditions, including regulatory approvals. The transaction is expected to close in 2025.

More than a decade after exiting health insurance, Nationwide has agreed to acquire a fast-growing employer benefits business line from one of its rivals.

The move is expected to bolster Nationwide Financial's product offerings, particularly targeting small businesses with stop loss insurance.