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 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.

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