Allstate Corp will sell its Lincoln Benefit Life Co to Resolution Life Holdings Inc.
Allstate Corp. has announced it will sell its Lincoln Benefit Life Co. to Resolution Life Holdings Inc. for $600 million.
According to the company, by exiting the consumer annuity business, Allstate Financial will reduce the amount of capital required by $1 billion.
Allstate will stop issuing fixed annuities opting to use third-party annuity companies so their agents and financial planners can continue to offer retirement products.
It is also being reported by the Chicago Tribune that as part of Allstate’s new 2014 compensation package, they’re increasing quotas for exclusive agents asking them to sell more financial products including annuities.
The deal is expected to be finalized by year-end. It will take Allstate 12 to 18 months to transition their business to Resolution Life therefore it will continue to administer existing plans until transition is complete.