Allstate Corporation has obtained all regulatory approvals and closed the sale of its New York-based life insurance business, Allstate Life Insurance Company of New York (ALNY), to Wilton Re for about $400 million.
“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,” commented Allstate chief financial officer Mario Rizzo.
Allstate’s sale of ALNY to Wilton Re was first announced in March. In a previous statement, Rizzo said that the sale “has minimal impact” on Allstate’s strategy of increasing market share in the personal-property liability segment and expanding its protection solutions for clients. The chief financial officer also noted how Wilton Re is “a trusted name” with a history of excellent customer service and expert management of life insurance and annuity portfolios.
The transaction also comes just months after Allstate sold off another life insurance business, Allstate Life Insurance Company (ALIC) to Blackstone, for $2.8 billion, which includes a pre-closing dividend from ALIC of up to $400 million. ALIC holds about 80% of Allstate’s life and annuity reserves, and generated income of $467 million in 2019, and a net loss of $23 million in the first nine months of 2020.
According to a statement from Allstate, both transactions will complete its exit from the traditional life and annuity businesses. It did note, however, that Allstate agents and exclusive financial specialists will continue to offer a suite of life insurance and retirement solutions from third-party providers.