Allstate Corporation, one of the largest primary insurers in the US, is close to selling a book of policies from an area in which it no longer creates new business to FGL Holdings, Reuters has reported.
With a valuation of between $2.5 billion and $3 billion, the deal would be the latest transaction involving run-off books by insurers, who have recently been offloading existing policies to free up cash for new business.
Reuters have stated that the two companies have declined to comment.
The book of business which Allstate is looking to offload reportedly includes a selection of annuity products, as well as structured settlement policies, the sources revealed.
It’s worth noting that this deal is not yet certain and Reuters’ source has requested to not be identified due to the confidential nature of the matter.