Jeff Sica of Circle Squared Alternative Investments and Lenore Hawkins, chief strategist at Tematica Research, at Allstate CEO Tom Wilson, say companies need to raise wages to “save capitalism”.
Private equity giant Blackstone Group Inc. has agreed to buy Allstate Life Insurance Co. from Allstate Corp. for $ 2.8 billion, the latest in a series of deals between financial firms and life insurers.
Allstate Life Insurance Co. holds about 80%, or $ 23 billion, of Allstate’s life reserves and annuities. The companies hope to close the deal in the second half.
DO NOT MAKE THESE GREAT LIFE INSURANCE BLUNDERS
“We are delighted to enter into this transaction as Blackstone continues to grow its insurance business,” said Gilles Dellaert, global head of Blackstone Insurance Solutions, in a statement.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| BX | BLACKSTONE GROUP | 64.90 | -0.08 | -0.12% |
| ALL | ALLSTATE CORPORATION | 109.53 | -1.39 | -1.25% |
Financial firms are in crisis to buy life insurance and annuity companies. Last week, Sixth Street Partners announced an agreement to buy the life insurance company Talcott Resolution for $ 2 billion.
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Since the global financial crisis of 2008, private equity, asset management and other types of financial companies have bought blocks of life insurance and annuity policies, and even entire operating units, as insurers have narrowed their focus and sold lines of products. Ultra low interest rates stimulated much of the activity, hurting insurers’ profits.
Allstate said the life insurance unit had a net loss of $ 23 million in the first nine months of 2020.
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In many negotiations involving financial buyers, newcomers aim to profit from investment management fees and smart investments from premiums paid by customers. Many businesses involved a basic savings product known as a fixed annuity, similar to a certificate of deposit.