Allstate Financial Annuity StrategyConsistent with Allstate's strategy to reduce its exposure to spread-based business, Allstate Financial will cease issuing fixed annuities at year-end 2013. Allstate agencies and exclusive financial specialists will serve their customers by continuing to offer a broad suite of life, retirement, savings, long-term care and disability products that are either issued by Allstate or provided by other companies.
"Allstate is committed to making the changes necessary to strengthen and grow the Allstate Financial business by focusing on life insurance sold through Allstate agencies and the worksite benefits market, where our competitive advantages generate profitable growth," said Don Civgin, president and chief executive officer of Allstate Financial.
Lincoln Benefit LifeBased in Lincoln, Neb., LBL was founded in 1938 and acquired by Allstate in 1984. Lincoln Benefit Life products are sold through independent agents by means of master brokerage agencies, independent agents, and Allstate exclusive agencies in all states except New York, the District of Columbia, Guam and the U.S. Virgin Islands.
Resolution LifeResolution Life Holdings, Inc. is a Delaware corporation established by British financial services investor, The Resolution Group. Its strategy is to acquire a number of life insurance businesses in the United States and focus on the needs of existing customers over the long run, rather than actively seeking new sales. Resolution Life is separate from Resolution Limited, a company publicly traded on the London Stock Exchange, which also was founded by The Resolution Group.The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate branded insurance products (auto, home, life and retirement) and services are offered through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via www.allstate.com, www.allstate.com/financial and 1-800 Allstate ®, and are widely known through the slogan "You're In Good Hands With Allstate ®." Forward-Looking Statements and Risk FactorsThis news release contains forward-looking statements about reducing our exposure to spread-based products and interest rates, generating a statutory gain and deployable capital, reducing reserves, earning returns, projecting the loss and reduction in GAAP equity generated through the sale of LBL, and closing on the sale by year-end. These statements are subject to the Private Securities Litigation Reform Act of 1995 and are based on management's estimates, assumptions, and projections. Actual results may differ materially from those projected based on the risk factors described below:
- Lower new sales of spread-based products could negatively impact investment portfolio levels and complicate settlement of expiring contracts, including forced sales of assets with unrealized capital losses.
- Regulatory reforms and any additional legislative changes or regulatory requirements on the financial services industry may make it more expensive for us to conduct our business, or limit our ability to grow or to achieve profitability.
- Limits on the ability of our insurance company subsidiaries to pay dividends could adversely affect holding company liquidity and the ability to distribute deployable capital.
- The loss on sale and reduction in GAAP equity calculations will fluctuate based on investment fair value valuations. Changing market conditions could result in actual amounts recorded being materially different from the estimates.
- Closing of this transaction is subject to regulatory approvals which could affect the estimated closing date.