Allstate Life Insurance Company was incorporated and began business in 1957, extending the Allstate brand beyond auto and homeowners into long-term protection and retirement products.[1] For decades, life and annuity offerings were closely tied to Allstate's captive-agent distribution model, which enabled cross-selling to households that already used the brand for property and casualty coverage. The pitch was convenience: one advisor relationship, multiple coverage needs.
As market conditions changed, life and annuity economics changed with them. Prolonged low interest rates after the 2008 crisis increased the cost of supporting rich guarantees and made scale, asset management, and risk management even more important for companies that wanted to stay in the segment. Across the industry, insurers responded by adjusting product features, pricing, and investment strategy to keep promises sustainable.
In 2021, Allstate announced an agreement to sell its life and annuity businesses to entities managed by Blackstone, signaling a strategic shift back toward its core property and casualty focus.[2] The move reflects a broader pattern in which multi-line groups periodically reshape portfolios when capital-intensive businesses no longer fit growth priorities or risk appetite.
Allstate Life Insurance Company
- Corporate Owner: Everlake Life (Blackstone) / Wilton Re.
- Home Office: Northbrook, IL (Historical).
- Early History: Founded 1957 by Allstate (Sears) to cross-sell life products to auto customers.
- M&A & Financial Timeline:
- 1993: Spun off from Sears.
- 2006: Acquires American Heritage Life (now Allstate Benefits).
- 2021: Sold: Allstate Corp exits the life business.
- Allstate Life (ALIC) sold to Blackstone (rebranded Everlake Life).
- Allstate Life of NY sold to Wilton Re.
Crucial Note: Allstate has completely exited the life insurance manufacturing business.
- If a user has an old policy, it is no longer Allstate; it is Everlake (or Wilton Re in NY).
- If a user buys a new policy from an Allstate agent today, it is likely written by a partner like Protective, Lincoln Financial, or Corebridge.
Corporate Overview
- Company Name (Legacy): Allstate Life Insurance Company (Now Everlake Life Insurance Company)
- Parent Company (Current): Everlake US Holdings Company (A portfolio company of Blackstone Inc.)
- Headquarters: Northbrook, Illinois
- Founding Date: 1957 (as Allstate Life); Sold/Rebranded in 2021.
- Primary Focus: Run-off management of existing Life and Annuity blocks (Closed block).
- Current Distribution: Allstate agents now act as brokers, distributing third-party products.
- Financial Strength: Rated A+ (Superior) by AM Best (Everlake).
10 Key Highlights
- The Blackstone Sale (2021): In a massive $4 billion deal, Allstate sold its primary life insurance subsidiary (Allstate Life Insurance Company) to entities managed by Blackstone, the private equity giant.
- The "Everlake" Rebrand: Immediately following the sale, Allstate Life Insurance Company was renamed Everlake Life Insurance Company. Policyholders received notices, but many still refer to it as "Allstate Life."
- The New York Exception: The New York subsidiary (Allstate Life Insurance Company of New York) was not sold to Blackstone. Instead, it was sold to Wilton Re for $220 million.
- Complete Exit: With these sales, Allstate effectively ceased underwriting its own life insurance products to focus entirely on Property & Casualty (Auto/Home).
- Agency Distribution Pivot: Allstate agents did not stop selling life insurance; they just stopped selling Allstate life insurance. They now offer products from partners like Protective Life, Lincoln Financial, and Corebridge (formerly AIG).
- "True Group" Sale (2025): Continuing the divestiture trend, Allstate sold its Employer Voluntary Benefits business to The Standard and its Group Health business to Nationwide (effective 2025).
- Customer Service Split: This causes major service headaches.
- Old Policy (Non-NY) $\rightarrow$ Call Everlake.
- Old Policy (NY) $\rightarrow$ Call Wilton Re.
- New Policy $\rightarrow$ Call the Partner Carrier (e.g., Protective).
- Investment Strategy: Under Blackstone’s ownership, Everlake’s investment portfolio shifted toward higher-yield private credit and alternative assets, a common strategy for private equity-backed insurers.
- Legacy Products: The block of business sold included mostly traditional fixed annuities and structured settlements, along with older Universal Life policies.
- Sears Roebuck Roots: The original Allstate Life was founded in 1957 when Allstate was still a subsidiary of Sears, Roebuck & Co., selling policies from booths in department stores.
Sources: [1] Allstate statutory statement excerpt (incorporation and commencement date for Allstate Life Insurance Company): https://www.allstatecorporation.com/statements/statutory-statement/2006/allstate-life-insurance-company-2006-q4.pdf. [2] Allstate Newsroom press release announcing sale of life and annuity business to Blackstone-managed entities (2021): https://www.allstate.com/resources/allstate/about/press-room/allstate-to-sell-life-and-annuity.
