RTTNews | Jan 26, 2021 09:20PM EST

21:20 Tuesday, January 26, 2021 (RTTNews.com) - Allstate Corp. (ALL) has agreed to sell Allstate Life Insurance Co. or ALIC to entities managed by Blackstone for $2.8 billion, including a pre-closing dividend from ALIC of up to $400 million. The sale excludes Allstate Life Insurance Company of New York.

ALIC 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 first nine months of 2020.

All statutory earnings from March 31, 2020, to closing, will be retained by Allstate. The transaction will reduce Allstate's GAAP reserves by $23 billion.

Blackstone will enter into an asset management agreement for ALIC's $28 billion of investments.

Allstate will retain ownership of ALNY, which has $5 billion of GAAP reserves and is pursuing alternatives to sell or otherwise transfer risk to a third party.

The transaction is expected to close in the second half of 2021.

Read the original article on RTTNews ( https://www.rttnews.com/3163609/allstate-to-sell-allstate-life-insurance-to-blackstone-for-2-8-bln.aspx)

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