US primary insurance carrier, The Allstate Corporation, has completed the sale of Allstate Life Insurance Company (ALIC) and certain subsidiaries to entities managed by private equity investment giant, Blackstone.
First announced in January 2021, the deal involved total proceeds of $4 billion, which included Blackstone’s $2.8 billion purchase price, as well as increases in statutory surplus since March 31, 2020.
Following its acquisition by Blackstone, the ALIC business will be renamed as Everlake Life Insurance.
“Allstate’s strategy is to increase personal property-liability market share and expand protection offerings to customers,” explained aid Tom Wilson, Chair, President and CEO of The Allstate Corporation.
“This sale redeploys capital into highly attractive property-liability and protection service businesses and reduces interest-rate exposure.”
The sale of ALIC, along with the previously announced sale of Allstate Life Insurance Company of New York (ALNY) to Wilton Re, reduces assets by approximately $34 billion to $99 billion and liabilities by approximately $33 billion to $72 billion as of June 30, 2021, and resulted in a GAAP book loss of approximately $3.8 billion in the first quarter of 2021.
Approximately $1.7 billion of deployable capital was generated by these transactions and was considered when authorizing the current $5 billion share repurchase program.
“We are pleased to complete this transaction,” commented Gilles Dellaert, Global Head of Blackstone Insurance Solutions.
“We believe the investment outperformance we can deliver through our industry-leading private credit origination platforms – while maintaining strong policyholder protections – will play a vital role in helping meet long-term customer obligations, especially at a time of historically low interest rates.”
FAQs
First announced in January 2021, the deal involved total proceeds of $4 billion, which included Blackstone's $2.8 billion purchase price, as well as increases in statutory surplus since March 31, 2020. Following its acquisition by Blackstone, the ALIC business will be renamed as Everlake Life Insurance.
Did Allstate Life get sold to Blackstone? ›
--(BUSINESS WIRE)--The Allstate Corporation (NYSE: ALL) today announced that it has closed the sale of Allstate Life Insurance Company (ALIC) and certain subsidiaries to entities managed by Blackstone for total proceeds of $4 billion, which is inclusive of Blackstone's approximately $2.8 billion purchase price, as well ...
What happened to Allstate life insurance? ›
The ALNY transaction, along with the previously announced agreement to sell Allstate Life Insurance Co. (ALIC) to Everlake US Holdings Co., an entity managed by Blackstone Group. for $2.8 billion, will complete Allstate's exit from the life and annuity businesses.
Did Allstate life insurance change their name? ›
The sale became final on November 1, 2021. The Allstate Assurance Company name was changed to Everlake Assurance Company and the Allstate Life Insurance Company name was changed to Everlake Life Insurance Company, respectively. Q2: What does the sale mean to me?
Who owns Allstate now? ›
Allstate is owned by its shareholders, as it is a publicly traded company. The biggest shareholders are BlackRock, The Vanguard Group, and State Street Corporation which have a combined ownership stake of almost 20%, according to public records, as of Q1 2020.
Does Blackstone own Allstate insurance? ›
Allstate Corporation has closed the sale of its life and annuity business – Allstate Life Insurance Company (ALIC) – as well as certain other subsidiaries to entities operated by investment management company Blackstone. The transaction was first announced earlier this year.
When did Allstate stop selling life insurance? ›
NORTHBROOK, Ill., March 29, 2021 – The Allstate Corporation (NYSE: ALL) has agreed to a transaction in which Wilton Re will pay $220 million to acquire Allstate Life Insurance Company of New York (ALNY).
How is Allstate doing financially? ›
Revenue: $15.3 billion, up 10.9% driven by Property-Liability earned premium. Earnings Per Share (EPS): Adjusted net income of $1.4 billion or $5.13 per diluted share. Property-Liability Earned Premium: Increased by 10.9% in Q1. Underwriting Income: $89 million with a combined ratio of 93%.
What insurance company did Allstate merge with? ›
Bert and Ernie. Great pairs are always stronger together, uniting to become greater than the sum of their parts. When Allstate acquired National General in 2021, another great pair came together, joining products to offer employers an even broader suite of coverage solutions for their employees.
Is Allstate Benefits being sold? ›
N) , opens new tab on Wednesday posted a quarterly profit, compared to a year-ago loss, on the back of higher premiums in its property-liability unit. The company said it was pursuing the sale of Allstate's Health and Benefits businesses and expects a sale would likely be completed in 2024.
No, Geico is not owned by Allstate. Geico is owned by the investment corporation Berkshire Hathaway. Allstate is a publicly-owned company.
Does Sears own Allstate? ›
Allstate became completely independent in June 1995, when Sears spun off the remaining 80% stake in the company, distributing 350.5 million shares of Allstate stock to its stockholders. In 1993, Allstate went public when Sears sold 19.8% of the company. At the time, it was the largest IPO to date.
Is Allstate merging with another company? ›
HOUSTON, Aug. 23, 2022 /PRNewswire/ -- Registered Agent Solutions, Inc. ("RASi"), A Lexitas Company, announced its acquisition of Allstate Corporate Services. Headquartered in New York, Allstate has been a leading Corporate Filing and Registered Agent company for over 19 years.
Who is Allstate biggest competitor? ›
State Farm is the largest auto insurance company in the U.S., with 17% of the market. Other big car insurance companies include Progressive, Geico and Allstate.
How much did the CEO of Allstate make last year? ›
Allstate CEO Tom Wilson collected $15 million in total compensation in 2022, down from $19.1 million in 2021.
Who bought Allstate headquarters? ›
As work-from-home and rising e-commerce demand trends converged, insurer Allstate struck a $232 million deal to sell its longtime headquarters campus in Chicago's northern suburbs to industrial developer Dermody Properties.
What company did Blackstone buy? ›
SEATTLE- February 27, 2024 – Rover Group, Inc. (“Rover” or the “Company”), the world's largest online marketplace for pet care, today announced the completion of its acquisition by private equity funds affiliated with Blackstone (“Blackstone”) in an all-cash transaction valued at approximately $2.3 billion.
What companies does Blackstone own? ›
Blackstone Group Inc's top holdings are Cheniere Energy Partners, L.P. - Limited Partnership (US:CQP) , Energy Transfer LP - Limited Partnership (US:ET) , Corebridge Financial, Inc. (US:CRBG) , Gates Industrial Corporation plc (US:GTES) , and FirstEnergy Corp. (US:FE) .
What insurance company did Allstate buy? ›
Bert and Ernie. Great pairs are always stronger together, uniting to become greater than the sum of their parts. When Allstate acquired National General in 2021, another great pair came together, joining products to offer employers an even broader suite of coverage solutions for their employees.
First announced in January 2021, the deal involved total proceeds of $4 billion, which included Blackstone’s $2.8 billion purchase price, as well as increases in statutory surplus since March 31, 2020.
