Allstate agrees to buy low-cost insurance carrier SafeAuto

Allstate Corp. said late Tuesday it has agreed to buy SafeAuto for about $300 million, including $270 million cash and about $30 million in pre-close dividends of some non-insurance assets. Privately held SafeAuto of Columbus, Ohio, provides state-minimum private-passenger auto insurance with coverage options in 28 states, the company said. “SafeAuto will accelerate our strategy of offering affordable protection solutions by lowering costs and lead to higher growth,” Allstate said. The deal is expected to close near the end of the third quarter, subject to regulatory approval and customary closing conditions. Shares of Allstate edged higher in the extended session after ending the regular trading day up 1%.

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