Allstate has no immediate plans for capital after agreeing to sale of life units

Allstate Corp. is comfortable with its current growth opportunities and feels no pressure to make big moves after announcing plans to sell a number of life insurance segments, according to the insurer's top executive.

Allstate Life Insurance Co. and certain subsidiaries are slated to be sold to entities managed by The Blackstone Group Inc. for $2.8 billion, pending regulatory approval. The transaction is expected to close in the second half of the year.

Speaking during a deal call, Allstate CEO Thomas Wilson said Blackstone will be a "better owner" for the life businesses, and assured listeners that the businesses will be well-capitalized and policyholders would be protected. Wilson said the deal was "economically attractive" when compared to issuing life insurance and running off the closed block of annuities. He pointed out that annuity sales were stopped in 2014 and life insurance sales have been flat since 2018.

Wilson also signaled during the call that Allstate does not have any immediate plans to use any substantial amount of capital.

"We don't necessarily see us having to go out and buy something else to grow," he said, noting that the company's philosophy around driving growth is to "lean into" what it already has.

Wilson also said that Allstate would not announce any additional share repurchases as a result of the deal with Blackstone, in part because the insurer is already in the middle of a $3 billion share repurchase program.

"When that's completed, then the board gets to decide what else we do with the money," he said.

The CEO did indicate however that Allstate may be open to a deal if one happened to be a good fit.

"If something comes along, and it looks like a good business, and we can get a good price on it, we have a good track record in doing that," Wilson said.