On November 1, 2021, Allstate Corporation (NYSE: ALL) announced that it had completed the sale of Allstate Life Insurance Company (ALIC) and certain subsidiaries to Blackstone-managed agencies for a total benefit of $4 billion, which includes Blackstone’s $2.8 billion cost price as well as increases in statutory excess since March 31, 2020.
“Allstate aims to grow its property-liability market share while also expanding protection options for customers. This sale reinvests resources in high-yielding property-liability and protection service industries while also lowering interest-rate risk,” Chair Tom Wilson, Allstate Corporation’s President, and CEO remarked.
Global Head of Blackstone Insurance Solutions, Gilles Dellaert, said: “This transaction has been completed with pleasure. We believe that the investment outperformance we can deliver through our industry-leading private credit origination platforms, combined with strong policyholder protections, will be critical in helping to meet long-term customer obligations, particularly at a time when interest rates are historically low.”
As of June 30th, 2021, the sale of Allstate Life Insurance Insurance Company, combined with the previously announced sale of Allstate Life Insurance Company of New York (ALNY) to Wilton Re, reduced assets by about $34 billion to $99 billion and liabilities by almost $33 billion to $72 billion, resulting in a GAAP book loss of approximately $3.8 billion in the first quarter of 2021.
These transactions generated approximately $1.7 billion in deployable capital, which was taken into account when authorizing the current $5 billion share repurchase program.
Customers’ needs will be met by Allstate agents and unique financial professionals who will provide a complete suite of life insurance and retirement solutions from third-party sources.
Under the new ownership of Blackstone-managed firms, the ALIC business will be renamed Everlake Life Insurance (“Everlake”).