Allstate (ALL) agreed to sell Lincoln Benefit Life for $600 million Wednesday.
Resolution Life Holdings, a company founded by U.K. businessman Clive Cowdery, agreed to purchase Lincoln yesterday as part of its strategy to buy U.S. life businesses that no longer sell policies, reports Bloomberg.
“This is an interesting departure,” Josh Stirling, an analyst at Sanford C. Bernstein & Co., told Bloomberg. “There’s been a fair amount of runoff acquisition of life companies in the United Kingdom, and you haven’t seen a lot of those folks come over to the United States.”
The deal is set to be completed by the end of the year and will result in Allstate losing $475 million to $525 million, reports Bloomberg.
Lincoln Benefit Life made $46.7 million in cash from operations and $54.5 million from investments last year.
ALL shares were up 2% Tuesday as of writing, continuing a 52% year-to-date increase.