Allstate Life Insurance Company of New York to be sold to Wilton Re
The Allstate Corporation, an Illinois-based insurance company, has agreed to sell Allstate Life Insurance Company of New York (ALNY) to Wilton Re for $220 million.
The deal, along with the previously announced transaction to divest Allstate Life Insurance Company (ALIC) and some affiliates to entities managed by Blackstone, wraps up the exit of Allstate from the life and annuity businesses.
Allstate said that its agents and exclusive financial specialists will continue to address the requirements of customers by providing a complete suite of life insurance and retirement solutions from third-party providers.
Mario Rizzo – Chief Financial Officer of Allstate said: “This transaction has minimal impact on our strategy of increasing market share in personal property-liability and expanding protection solutions for customers.
“Wilton Re is a trusted name with a history of excellent customer service and expert management of life insurance and annuity portfolios, so ALNY customers will be well protected.”
Allstate Life Insurance Company of New York to be sold to Wilton Re. Photo courtesy of Raysonho @ Open Grid Scheduler / Grid Engine / Wikipedia.org.
The deal includes the scrapping of an ALIC stop-loss reinsurance treaty.
Allstate will contribute a capital of $660 million into ALNY after which it will get the $220 million payment from Wilton Re.
The deal will bring down GAAP reserves and invested assets by $5 billion and $6 billion, respectively. The combined sales of ALIC and ALNY will lead to an estimated GAAP net loss of around $4 billion, which will be registered in Q1 2021, and generate deployable capital of around $1.7 billion.
The two deals, which are subject to regulatory approval and other closing conditions, are anticipated to be completed in the latter half of this year.