Sentry swooped for Insurance General.

Mutual insurance company Sentry Insurance, a non-standard auto (NSA) insurance provider, is being acquired by American Family Insurance in a $1.7 billion deal.

That amount includes $1.1 billion in cash plus assumed liabilities and required capital. The transaction is scheduled to close by the end of 2024, pending regulatory approval.

With a long history of business insurance, Sentry also operates Dairyland, which offers NSA insurance as well as motorcycle and off-road vehicle coverage. The swoop for General is set to strengthen Sentry’s position in the NSA market.

Pat McPartland (pictured), Sentry’s chairman and chief executive, noted: “This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the custom auto industry.

“Together, Dairyland and General will be able to serve the unique needs of even more drivers across the country. This is an exciting step for both companies, and I’m proud of the work our team has done. What’s to make it possible.”

General, which has been part of the American family since 2012, has seen significant growth under the latter’s ownership.

American Family Chair and CEO Bill Westright highlighted: “As part of our enterprise, General has more than quintupled its revenue, driven by consistently profitable business, entering new states. , while remaining dedicated and passionate about the clients and the market it serves.

“We have found a strategic and cultural fit at Sentry, where General’s growth and momentum will continue.”

Founded in 1963 and headquartered in Nashville, General has built a reputation in direct-to-consumer NSA insurance. In contrast, Dairyland, founded in 1953 before joining Sentry in 1966, is known for its independent agent network.

Under the deal, about 1,300 general associates will join Sentry’s existing staff of 5,000. The transfer of employees will be effective from January 1, 2025.

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