The Allstate Corp. closed on the sale of Allstate Life Insurance Company of New York to Wilton Re for about $400 million.
The Allstate Corp. ALL is set to exit its life and annuity businesses after closing the sale of Allstate Life Insurance Company of New York to Wilton Re for about $400 million.
Allstate said in a Friday company statement that it had obtained all required regulatory approvals and closed the sale. The sale will reduce Allstate’s GAAP reserves by about $5 billion.
“Closing on the sale of ALNY is a significant step in Allstate’s strategy of increasing personal property-liability market share and expanding protection services, while deploying capital out of the life and annuity businesses,” Mario Rizzo, chief financial officer of Allstate, said in the statement.
Allstate in January agreed in a separate transaction to sell Allstate Life Insurance Co., which holds the bulk of its life and annuity business, to 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 earnings 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.
The closing of these transactions will complete Allstate’s exit from the traditional life and annuity businesses. Allstate agents and exclusive financial specialists will continue offering a full suite of life insurance and retirement solutions from third-party providers.
Allstate Life Insurance Co. holds 80% of the company’s life and annuity reserves. The transaction will reduce Allstate’s GAAP reserves by $23 billion. Blackstone will enter into an asset management agreement for ALIC’s $28 billion of investments.
Shares of Allstate on Friday closed 0.3% higher to $127.72.