SILVER SPRING, Md. -- Allstate is buying National General Holdings for US$4 billion in cash, expanding the scope of its insurance holdings.

National General shareholders will get US$32 per share that they hold, plus closing dividends of about US$2.50 per share, for a total of about US$34.50 each.

National General had gross premiums of US$5.6 billion in 2019, generating operating income of US$319 million in 2019 from a range of property-liability coverage including "non-standard" auto insurance.

Allstate, based in Northbrook, Ill., said that National General's business and technology will bolster its existing independent agent businesses. The acquisition will increase Allstate's personal lines premiums by US$4 billion and market share by more than one percentage point to 10 per cent.

The board of National General Holdings Corp. has already approved the deal, which is expected to close in early 2021. The New York insurer said that no fewer than 40 per cent of its voting shares have also committed to approve the deal.