The Allstate Corporation (ALL) has completed the disposal of Lincoln Benefit Life Company to Resolution Life Holdings, for $796m.
Allstate Corporation chairman, president and CEO Thomas J. Wilson said, "This divestiture is another strategic step for Allstate to serve distinct consumer segments with differentiated offerings."
"Allstate Financial will now focus on providing proprietary life and non-proprietary retirement products to the customer segment served by local Allstate agencies.
"This sale also supports our risk and return objectives of reducing exposure to interest rates and spread-based businesses."
The deal includes Lincoln Benefit Life Company’s life insurance business generated through independent agencies and its entire deferred fixed annuity and long-term care insurance businesses.
The sale will reduce Allstate’s life and annuity reserves and investment portfolio by nearly $12.7bn and $11.9bn, respectively.
The company believes that the transaction will result in a statutory accounting gain of approximately $365m and is expected to reduce Allstate Life Insurance Company’s capital requirement by $1bn.
ALL operates as a personal lines insurer, serving nearly 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment.