Sentry Insurance announced it is buying The General, a nonstandard auto insurer, from American Family Insurance for $1.7 billion.

Sentry, a mutual insurer based in Wisconsin, primarily offers commercial insurance, but also writes nonstandard auto, motorcycle and off-road vehicle insurance through its Dairyland® brand distributed through the independent agency channel. The General is a direct-to-consumer insurer.

"This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the nonstandard auto industry," said Pete McPartland, chairman and CEO of Sentry. “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."

Sentry is paying $1.1 billion in cash, with the rest of the transaction value reached with assumed liabilities and required capital.

The transaction is expected to close by the end of the year pending regulatory approvals. During the integration process, the brands plan to operate independently, according to Sentry. The General will continue to be based in Nashville and its 1,300 employees will join Sentry's workforce of 5,000 on Jan. 1, 2025.

“We've found a strategic and cultural fit in Sentry, where the growth and momentum that The General has will continue," said American Family Insurance CEO Bill Westrate. “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."

Last month, Main Street America Insurance, part of American Family Insurance Mutual Holding Co., announced its departure from personal lines in favor of a commercial lines focus.

AnneMarie McPherson Spears is IA news editor.