Allstate seals $4 billion sale of life and annuity businesses (2024)

FAQs

Allstate seals $4 billion sale of life and annuity businesses? ›

Total proceeds of the transaction amounted to $4 billion, a company release said, inclusive of Blackstone's approximately $2.8 billion purchase price and in addition to increases in statutory surplus since March 31, 2020. ALIC will be renamed Everlake Life Insurance under its new ownership by Blackstone entities.

“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,” said Mario Rizzo, chief financial officer of Allstate.

NORTHBROOK, Ill., March 29, 2021 – The Allstate Corporation (NYSE: ALL) has agreed to a transaction in which Wilton Re will pay $220 million to acquire Allstate Life Insurance Company of New York (ALNY).

Allstate RightFit Annuity

On November 1, 2021, Allstate Insurance Company completed its sale of Allstate Life Insurance Company and Allstate Distributors, LLC, to Everlake US Holdings Company, a Delaware corporation (the “Transaction”).

--(BUSINESS WIRE)--The Allstate Corporation (NYSE: ALL) today announced that it has closed the sale of Allstate Life Insurance Company (ALIC) and certain subsidiaries to entities managed by Blackstone for total proceeds of $4 billion, which is inclusive of Blackstone's approximately $2.8 billion purchase price, as well ...

First announced in January 2021, the deal involved total proceeds of $4 billion, which included Blackstone's $2.8 billion purchase price, as well as increases in statutory surplus since March 31, 2020. Following its acquisition by Blackstone, the ALIC business will be renamed as Everlake Life Insurance.

For some, the desire to sell a policy comes from wanting to use the money to make a large purchase or settle debt. Instead of taking out a loan with interest, policyholders can sell their unwanted life insurance for a lump sum payment and use that money to fund their purchase(s) or pay off outstanding debts.

What to Expect if Your Insurance Company Fails. If an insurance company is declared insolvent, expect the state guaranty association and guaranty fund to swing into action. The association will transfer the insurer's policies to another insurance company or continue providing coverage itself for policyholders.

CEO reflects on "strong operating capabilities"

The Allstate Corporation has made a huge turnaround, reporting $1.2 billion in net income applicable to common shareholders in the first quarter of 2024 following last year's Q1 net loss of $346 million.

Allstate cited wildfire risk, the cost of rebuilding homes and the rising price of reinsurance as reasons for halting new policies in 2022.

What is the new name for Allstate life insurance company? ›

The sale became final on November 1, 2021. The Allstate Assurance Company name was changed to Everlake Assurance Company and the Allstate Life Insurance Company name was changed to Everlake Life Insurance Company, respectively. Q2: What does the sale mean to me?

It's still possible to use pension savings to 'buy' an income that lasts for life and doesn't run out. It's called an 'annuity'. It comes in different shapes and sizes depending on a person's individual circ*mstances. But what's common to all is regular income for life.

Allstate is not owned by hedge funds. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 12%. With 7.2% and 4.3% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc.

Allstate Corporation has closed the sale of its life and annuity business – Allstate Life Insurance Company (ALIC) – as well as certain other subsidiaries to entities operated by investment management company Blackstone. The transaction was first announced earlier this year.

Founded in 1985, both companies fell under an umbrella company called Blackstone Financial Management, a mergers and acquisitions company. In 1988, BlackRock separated from the parent company and focused on risk management. Today, they're now completely separate companies with different offerings.

When an individual who does not have a terminal or chronic illness sells a policy for other reasons, including changed needs of dependents, wanting to reduce premiums, and cash for meeting expenses, that is known as a life settlement.

The sale became final on November 1, 2021. The Allstate Assurance Company name was changed to Everlake Assurance Company and the Allstate Life Insurance Company name was changed to Everlake Life Insurance Company, respectively. Q2: What does the sale mean to me?

The Allstate policies are now owned by Wilton, who has acquired many such blocks of business. All those policies continue their contractual terms. It's true they are not the easiest to deal with, but term policies don't require a whole lot of interaction with the carrier.

Allstate Benefits offers a full range of life insurance products that can provide security through every stage of life.