Chief Financial Officer Jess Merten said that the deal will generate a financial book gain of about $450 million and increase deployable capital by $900 million.

The Allstate Corporation (NYSE: ALL) announced a definitive agreement to sell its Group Health business to Nationwide for $1.25 billion in cash, adjusted for the closing balance sheet, and subject to standard closing conditions including regulatory approvals.

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.