Allstate Corp. is one step closer to shedding its life and annuity businesses for good. The insurance giant has struck a deal to sell Allstate Life Insurance Company of New York (ALNY) to Wilton Re for $220 million.
The deal follows a previously announced agreement to sell Allstate Life Insurance Company (ALIC) and certain affiliates to entities managed by Blackstone for $2.8 billion. This will complete Allstate’s exit from the life and annuity businesses, enabling the group to focus more on personal property-liability coverage.
In January 2021, Allstate closed its $4 billion acquisition of National General Holdings Corp. – a deal that advanced its strategy of growing its market share and distribution capabilities in personal lines insurance.
“The [ALNY] transaction has minimal impact on our strategy of increasing market share in personal-property liability and expanding protection solutions for customers,” said Mario Rizzo, chief financial officer of Allstate. “Wilton Re is a trusted name with a history of excellent customer service and expert management of life insurance and annuity portfolios, so ALNY customers will be well protected.”
Together, the divestitures of ALIC and ALNY will result in an estimated GAAP net loss for Allstate of $4 billion, which will be recorded in the first quarter of 2021, and generate approximately $1.7 billion of deployable capital.
Both the ALNY and ALIC transactions are expected to close in the second half of 2021, subject to regulatory approval and other closing conditions.