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NORTHBROOK, IL — If you’re looking for life insurance, cross Allstate off your list. The Northbrook-based company announced earlier this week that it is getting out of the life and annuity businesses altogether, pending a $220 million sale to Wilton Re for its Allstate Life Insurance Company of New York division.

The transaction is expected to close in the second half of 2021, subject to regulatory approval and other closing conditions, according to a news release from Allstate.

This transaction, along with the previously announced agreement to sell Allstate Life Insurance Company and certain affiliates to entities managed by Blackstone, will complete Allstate’s exit from the life and annuity businesses. The company said Allstate agents and exclusive financial specialists will continue to offer life insurance and retirement options for customers through third-party providers

The transaction has minimal impact on our strategy of increasing market share in personal-property liability and expanding protection solutions for customers,” said Mario Rizzo, chief financial officer at Allstate, in the news release. “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 will contribute $660 million of capital into ALNY, then receive a payment of $220 million from Wilton Re. The transaction, according to the news release, will reduce GAAP reserves and invested assets by $5 billion and $6 billion respectively. The combined divestitures of ALIC and ALNY will result in an estimated GAAP net loss of $4 billion, which will be recorded in the first quarter of 2021, and generate approximately $1.7 billion of deployable capital.

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