Allstate Corporation said on Tuesday it had agreed to sell most of its life insurance business to entities managed by buyout firm Blackstone Group Inc for $2.8 billion.
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By Reuters Staff
2 Min Read
(Reuters) - Allstate Corporation said on Tuesday it had agreed to sell most of its life insurance business to entities managed by buyout firm Blackstone Group Inc for $2.8 billion.
The deal comes as global life insurers are taking steps to curb payouts stemming from the COVID-19 pandemic, including long-term health consequences that are not fully understood.
In the United States, 8% of reported group life insurance claims from April to August attributed the cause of death to COVID-19, according to the U.S. Society of Actuaries.
“Allstate is deploying capital out of lower growth and return businesses while continuing to execute our strategy to grow market share in personal property-liability,” Chief Executive Officer Tom Wilson said.
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Allstate Puts its Life Insurance Unit in Blackstone’s Good Hands
Posted on 01/27/2021
On January 26, 2021, The Allstate Corporation sold Allstate Life Insurance Company to Antelope US Holdings Company, a corporation incorporated under the laws of the State of Delaware, an affiliate of an investment fund associated with The Blackstone Group Inc. Blackstone will acquire all of Allstate Life Insurance Company’s subsidiaries except for Allstate Life Insurance Company of New York. The total consideration to be paid by Blackstone to the Sellers is expected to be approximately US$ 2.8 billion in cash, subject to adjustment as specified in the Purchase Agreement, which may include downward adjustment for an up to US$ 400 million pre-closing extraordinary dividend from Allstate Life Insurance, if any, to Allstate Insurance Company. Allstate has been surgically deploying capital out of spread-based products with life and annuity liabilities declining to US$ 5 billion after the closing of