Blackstone assets increase 6% for quarter, 8% for year
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Blackstone Group on Wednesday reported $618.6 billion in assets under management as of Dec. 31, up 6% from three months earlier and up 8% from a year earlier.
During an investor call, also on Wednesday, Stephen A. Schwarzman, chairman, CEO and co-founder, said that despite a challenging year, Blackstone had $32.3 billion of inflows in the quarter and $95 billion in the year ended Dec. 31.
At the same time, Blackstone invested $25.4 billion in the quarter and $61.7 billion in the year.
During Wednesday s call, Jonathan Gray, Blackstone president and chief operating officer, discussed Blackstone s acquisition of Allstate Corp. s life insurance business, Allstate Life Insurance Co., for $2.8 billion that was announced Tuesday evening. Allstate Life Insurance Co. holds about 80% (or $23 billion) of Allstate s life and annuity reserves and generated net income of $467 million in 2019 and a net loss of $23 million in the fir
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“This transaction represents the next step in the process to deploy capital out of spread-based risks,” Allstate Chief Executive Tom Wilson said Wednesday on a conference call about the transaction. “This transaction is economically attractive when compared to issuing life insurance and running off the closed block of annuities.”
Allstate shares were up a touch to $109.7 at 9:35 a.m. in New York on Wednesday but dropped a bit later in the day. The deal is expected to close in the second half of this year, and to cause a roughly $3.1 billion financial book loss for Allstate in the first quarter.
Allstate to Sell Allstate Life Insurance Co for $2 8 Billion o Blackstone morningstar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from morningstar.com Daily Mail and Mail on Sunday newspapers.
Blackstone Buys Allstate Life Insurance Business for $2.8B
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Blackstone Group Inc. agreed to buy a life business from Allstate Corp. for $2.8 billion as the private equity firm expands its foothold in the insurance industry.
Entities managed by Blackstone will purchase
Allstate Life Insurance Co., the insurer said in a statement. Allstate will retain a New York life business and is seeking a way to sell or transfer risk from that unit to a third party.
Allstate has been looking to pivot away from life insurance and annuities as the Northbrook, Illinois-based firm focuses more on property-casualty products such as identity protection and personal coverage. The deal will help Blackstone expand further into life insurance and annuities after its work with
Allstate to sell life insurance business to Blackstone chicagotribune.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from chicagotribune.com Daily Mail and Mail on Sunday newspapers.