Allstate To Sell Allstate Life Insurance Company Of New York To Wilton Re For $220 Mln

(RTTNews) - Allstate Corp. (ALL) agreed to sell Allstate Life Insurance Company of New York to Wilton Re for $220 million.

The transaction will reduce GAAP reserves and invested assets by $5 billion and $6 billion respectively.

Allstate has agreed to contribute $660 million of capital into Allstate Life Insurance Company of New York.

Allstate noted that the transaction, along with the previously announced agreement to sell Allstate Life Insurance Company and certain affiliates to entities managed by Blackstone, completes Allstate's exit from the life and annuity businesses.

The combined divestitures of Allstate Life Insurance Company and Allstate Life Insurance Company of New York will result in an estimated GAAP net loss of about $4 billion, which will be recorded in the first quarter of 2021, and generate about $1.7 billion of deployable capital.

Both transactions are expected to close in the second half of 2021.