Allstate Corp. and Discover Financial Services said they had entered an agreement in which Discover will buy substantially all of Allstate’s bank deposits.
The companies called the deal a “multiyear distribution and marketing agreement.” As part of the agreement, Allstate agents and affiliates will offer personal savings and money-market accounts as well as other financial services to their customers through Discover.
Financial terms weren’t given. The deal is expected to close by midyear.
“Allstate Financial has refocused on insurance, retirement and investment products. That, combined with the changing regulatory environment, led us to the determination that operating Allstate Bank is no longer core to our long-term strategy,” said Matthew Winter, the president and chief executive of Allstate Financial.
The companies said the transfer of deposits won’t affect insurance policies or other non-banking products that customers have with Allstate.
Shares of Discover and Allstate closed at $21.47 and $32.56, respectively, and were inactive after hours.
