Allstate Corp announced plans to sell the Lincoln Benefit Life Co for US$600 million to Resolution Life Holdings. The sale will be the latest for an insurer to sell its annuity and life insurance businesses in the current low interest-rate environment. The acquisition is expected to generate cash proceeds of approximately US$785 million, including tax benefits. The deal give Allstate a statutory gain between US$350 million to US$400 million and will increase the company's deployable capital by about US$1 billion.

"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."

The deal between Allstate and Resolution Life Holdings follows the AXA SA sale for its U.S. life insurance unit to Protective Life Corp last April. Sun Life Financial Inc sold its variable annuity business to Delaware Life Holdings last December.