(Reuters) - U.S. insurer Nationwide said on Thursday that it would acquire property and casualty insurer Allstate Corp's employer stop-loss segment in a $1.25 billion deal, as it seeks to expand its stop-loss insurance offering. The transaction is expected to close in the second half of 2025, Nationwide said in a statement.

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.