Allstate to sell life insurance business for $600 mln

July 17 Wed Jul 17, 2013 6:04pm EDT

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July 17 (Reuters) - Home and auto insurer Allstate Corp will sell its Lincoln Benefit Life Co to Resolution Life Holdings for $600 million, becoming the latest insurer to sell their life and annuity businesses in the low interest-rate environment.

The deal follows AXA SA's sale of its U.S. life insurance unit to Protective Life Corp in April and Sun Life Financial Inc's sale of its variable annuity business to Delaware Life Holdings in December..

Reuters reported last month that British financial services firm Resolution Group was in the race to buy the Allstate unit for about $500 million to $900 million.

The deal will generate cash proceeds of about $785 million, including tax benefits, Allstate said in a statement on Wednesday.

The deal will result in a statutory gain of $350 million to $400 million and increase Allstate's deployable capital by about $1 billion.

Allstate shares, which have risen about 27 percent this year, closed at $51.03 on the New York Stock Exchange on Wednesday.