Stevens Point-based Sentry Insurance to acquire The General from American Family Insurance

STEVENS POINT – Sentry Insurance will purchase The General from American Family Insurance.

According to a Thursday morning news release from Sentry Insurance, the Stevens Point company will purchase The General for about $1.1 billion. Adding the value of assumed liabilities and required capital, the total deal is expected to be $1.7 billion. The company expects the deal to close by the end of this year, pending regulatory approvals, according to the release.

Pete McPartland, Sentry’s chairman and CEO, said the acquisition is the largest in Sentry’s 120-year-old history.

“It brings together two of the strongest brands in the non-standard auto industry,” McPartland said. “Together, Dairyland and The General will be better able to meet the specialized needs of even more drivers across the country. It’s an exciting step forward for both companies and I’m proud of the work our team has done to make this possible.”

Bill Westrate, American Family Insurance’s chair and CEO, said The General has expanded its revenue more than fivefold, expanding into new states while maintaining its passion for the customers and markets it serves. He said Sentry is a good strategic and cultural fit to continue the growth and momentum The General has experienced.

“We’re confident that Sentry’s expertise, strong reputation in this market and employment culture will not only continue to serve The General’s customers well but will also ease the transition for The General’s employees,” Westrate said.

According to its website, The General started in 1963 under the company name Permanent General Agency and is headquartered in Nashville. In 2000, the company began selling insurance online, and in 2013, American Family Insurance purchased the company.

Sentry has provided comprehensive coverage for non-standard auto, motorcycle and off-road vehicles through Sentry’s Dairyland brand. Dairyland, based in Middleton, was founded in 1953, and Sentry Insurance purchased it in 1966.

According to Sentry’s Thursday release, both brands will continue to operate independently as Sentry and The General as they work through integration. About 1,300 The General employees will join Sentry’s team starting Jan. 1. They will continue to be headquartered in Nashville.

Customers will experience flexibility in choosing how to purchase insurance, through an agent or directly, for a more seamless experience through claims and customer service, according to the release.

Contact Caitlin at cshuda@gannett.com or follow her on Twitter @CaitlinShuda.