Allstate completes sale of Lincoln Benefit Life

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PRESS RELEASE: The following content has been reprinted in whole or part from a company-supplied press release.

The Allstate Corp. has completed the sale of Lincoln Benefit Life Co. to Resolution Life Holdings Inc.

“This divestiture is another strategic step for Allstate to serve distinct consumer segments with differentiated offerings,” said Thomas J. Wilson, chairman, president and chief executive officer of Allstate. “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.”

Thomas Wilson

Thomas Wilson

The sale includes Lincoln Benefit Life Co.’s life insurance business generated through independent agencies and its entire deferred fixed annuity and long-term care insurance businesses. Lincoln Benefit Life Co.’s life insurance policies sold through Allstate agencies will be retained through a reinsurance arrangement.

The sale will reduce Allstate’s life and annuity reserves and investment portfolio by approximately $12.7 billion and $11.9 billion, respectively. The estimated gross sale price is $796 million, representing $587 million of cash and the retention of tax benefits. The estimated GAAP loss on sale is approximately $510 million, which is $11 million lower than the estimated loss of $521 million recorded in 2013 due to contractual closing adjustments. The transaction is estimated to result in a statutory accounting gain of approximately $365 million and is expected to reduce Allstate Life Insurance Co.’s capital requirement by $1 billion. Net income generated by Lincoln Benefit Life was approximately $140 million in 2013.

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