[ad_1]
Allstate Corp. ALL is set to retire from its life insurance and annuity business after closing the sale of Allstate Life Insurance Company of New York to Wilton Re for around $ 400 million.
Allstate said in a Friday Company Statement that it had obtained all required regulatory approvals and completed the sale. The sale will reduce Allstate’s GAAP reserves by approximately $ 5 billion.
“The closing of the sale of ALNY is an important step in Allstate’s strategy to increase the personal property liability market share and expand protection services, while deploying capital outside the business. life insurance and annuities, â€Mario Rizzo, Chief Financial Officer of Allstate, said in a statement. the statement.
Allstate agreed in January in a separate transaction to sell Allstate Life Insurance Co., which owns most of its life insurance and annuities business, to the Blackstone Group’s Everlake US Holdings Company for $ 2.8 billion, according to a previous statement. The transaction includes a pre-closing dividend from ALIC of up to $ 400 million.
All statutory profits from March 31, 2020 to closing will be retained by Allstate. This transaction is expected to close later in 2021, subject to regulatory approval and other closing conditions.
Closing these transactions will complete Allstate’s exit from the traditional life insurance and annuity business. Allstate agents and exclusive financial specialists will continue to offer a full suite of life insurance and pension solutions from third party providers.
Allstate Life Insurance Co. holds 80% of the company’s life insurance and annuity reserves. The transaction will reduce Allstate’s GAAP reserves by $ 23 billion. Blackstone will enter into an asset management deal for ALIC’s $ 28 billion investment.
Allstate shares on Friday closed 0.3% higher at $ 127.72.
[ad_2]
