Insurer Allstate to buy National General for about $4 billion

(Reuters) - Allstate Corp said on Tuesday it will buy National General Holdings Corp for about $4 billion in cash as the U.S. insurer looks to expand its market share in personal lines insurance business.

National General's shareholders will receive $32 per share in cash and closing dividends of $2.50 per share for each share held. This would imply a total deal value of $3.92 billion and a premium of about 69% to National General's Tuesday close, Reuters calculations showed.

Allstate, one of the largest U.S. auto insurers, said the deal is expected to close in early 2021 and will add to its adjusted earnings per share and return-on-equity beginning the first year.

"Acquiring National General accelerates Allstate's strategy to increase market share in personal property-liability and significantly expands our independent agent distribution," Allstate Chief Executive Officer Tom Wilson said.

The deal has been approved by National General's board, Allstate said, adding that it included a breakup fee of $132.5 million.

Ardea Partners was the financial adviser to Allstate, while J.P. Morgan Securities LLC advised National General.

(Reporting by Shubham Kalia in Bengaluru, Editing by Sherry Jacob-Phillips)