July 17 Home and auto insurer Allstate Corp
will sell one of its life insurance businesses, Lincoln
Benefit Life Co, to Resolution Life Holdings for $600 million,
the company said on Wednesday.
The deal is the latest example of an insurer selling a life
and annuity business in the low interest-rate environment.
It 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.
Allstate, the largest publicly traded home and auto insurer
in the United States, said in a statement that the transaction
would generate cash proceeds of about $785 million, including
The deal will result in a statutory gain of $350 million to
$400 million and increase Allstate's deployable capital by about
Chief Executive Thomas Wilson said the sale, which
represents only a portion of Allstate's life insurance business,
would reduce the company's exposure to spread-based business and
Allstate said it expected the deal to close by the end of
Allstate shares, which have risen about 27 percent this
year, closed at $51.03 on the New York Stock Exchange on