Allstate Completes Sale of Life Insurance Company of New York

The Allstate Corp. moved closer to its complete exit from the life insurance and annuity business with the closing of the sale of its Allstate Life Insurance Company of New York to Wilton Re for approximately $400 million.

The ALNY transaction, along with the previously announced agreement to sell Allstate Life Insurance Co. (ALIC) to Everlake US Holdings Co., an entity managed by Blackstone Group. for $2.8 billion, will complete Allstate’s exit from the life and annuity businesses.

“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.

The combined divestitures of ALIC and ALNY are expected to generate approximately $1.7 billion of deployable capital, according to the company..

ALIC holds approximately 80 percent, or $23 billion, of Allstate’s life and annuity reserves. The New York company has $5 billion of GAAP reserves.

Wilton Re is a provider of reinsurance in the North American life insurance industry

Allstate agents will now offer a life insurance and retirement products from third-party providers.