NORTHBROOK, Ill., July 17, 2013 /PRNewswire/ -- The Allstate Corporation (NYSE: ALL) today announced a definitive agreement to sell its Lincoln Benefit Life Company ("LBL") to Resolution Life Holdings, Inc. ("Resolution Life") for $600 million, thereby exiting the consumer segment served by independent life insurance and annuity agencies and reducing required capital in Allstate Financial by approximately $1 billion. In addition, Allstate Financial will discontinue issuing fixed annuities at year-end 2013 and utilize third party annuity companies to ensure Allstate agencies and exclusive financial specialists continue offering a broad suite of protection and retirement products. "The sale of Lincoln Benefit Life aligns with our strategy to serve distinct customer segments with differentiated offerings in markets where we have a competitive advantage. This will sharpen Allstate Financial's focus on the Allstate agency channel while still providing a broad suite of products for our customers," said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. "This divestiture is one of many actions we have taken to strategically focus Allstate Financial and deploy capital to earn attractive risk-adjusted returns. This action also advances Allstate's key priorities, including reducing exposure to spread-based business and interest rates." Transaction DetailsAllstate has entered into a definitive agreement to sell LBL to Resolution Life for $600 million, generating cash proceeds, inclusive of tax benefits, of approximately $785 million. The transaction is expected to close by the end of the year, subject to customary regulatory approvals. The sale of LBL is estimated to result in a GAAP loss on sale in the range of $475 million to $525 million, after-tax, and a reduction in GAAP equity, including the impact to unrealized capital gains and losses, in the range of $575 million to $675 million. This transaction will result in a statutory gain of $350 million to $400 million, increase Allstate's deployable capital by approximately $1 billion and reduce Allstate life and annuity reserves by $13 billion. The business being sold had $341 million of premiums and contract charges, representing 15% of Allstate Financial's 2012 total. Normal after-tax returns have averaged approximately 1% of transaction reserves. As a result of this transaction, Allstate will not sell new life or retirement products through independent life insurance and annuity agencies. Allstate will continue to service in-force LBL business sold through independent life insurance and annuity agencies for a 12- to 18-month transition period, after which this business will be administered by Resolution Life. Resolution Life was founded by The Resolution Group, which has a consistent track record of establishing businesses in the United Kingdom for the management of in-force life insurance policies. Its operations in the United States are led by a seasoned executive team with extensive life insurance experience. Resolution Life has a long-term view of the market and is committed to retaining in-force customers and providing excellent customer experiences and support. Allstate agencies and exclusive financial specialists will continue to sell LBL life products until Allstate Financial transitions these products to another Allstate company. When the transaction closes, in-force LBL life and all LBL payout annuity business sold through the Allstate agency channel will continue to be reinsured and serviced through Allstate.