Posted by (American Life Insurance Guide 01/27/2021 News) — Blackstone Group Inc. of the United States announced that it has agreed to buyAllstateLife insurance business.
This is following the private equity groupKKR acquires Global AtlanticAfter the financial and insurance group, another private equity giant got involved in the acquisition of the insurance industry through acquisitions.
As a sellerAllstate, Will be phased outlife insuranceAndAnnuity market.
Photo courtesy of the official website of Allstate Insurance Headquarters
Allstate: Get rid of life insurance and annuity business
Allstate Insurance Company, based in Illinois, has been seeking to get rid ofLife insurance and annuities. Allstate hopes to focus more on property accident insurance products.
In a public statement yesterday, Jeonju Life said that Blackstone Group's institutions will take over its life insurance business. Allstate will retain its life insurance business in New York, waiting for the opportunity to sell.
This transaction will help Blackstone Group and FGL Holdings reach a cooperation to further expand Blackstone's business in the life insurance and annuity markets. FGL Holdings was acquired by Fidelity National Financial Inc. last year.
Allstate Chief Executive Officer Tom Wilson said on a conference call regarding the transaction: "The issue of life insurance and paymentpensionIn contrast, in terms of economic behavior, this transaction is attractive. "
After the stock market opened today, Allstate's stock price rose to $109.7.
Blackstone Blackstone Investment Group Official Website
Attacking private equity, retreating traditional brands
OnAmerican Life Insurance GuideEarlyFollow-up reportIn, the reporter analyzed the private equity groups behind some life insurance brands in the United States, and launched the "Is it a good idea to choose an insurance company controlled by PE to insure?"" as the theme of the reader survey.
According to Yahoo Finance, private equity firms such as Blackstone and Apollo Group believe thatAnnuity businessIt is a stable asset flow that can be invested.Through this transaction, the Blackstone Group will sign an asset management agreement to help supervise the $280 billion investment portfolio brought about by the transaction.
David Havens, a credit analyst at Imperial Capital, said in a report: "Private equity firms areAnnuity field, Has been in a trend of expansion, and insurance companies with multiple business lines have begun to withdraw from the "one-stop" group insurance business model. "
(End of full text source: Bloomberg News)
appendix
1. "Blackstone to Buy an Allstate Life Insurance Business for $2.8 Billion", 2021.01.26. Heather Perlberg, Katherine Chiglinsky,https://bloom.bg/3t2nvev
