Allstate Announces the Sale of Lincoln Benefit Life Company

         Allstate Announces the Sale of Lincoln Benefit Life Company

· Sharpens focus on Allstate's segmented customer strategy

· Increases deployable capital by $1 billion

PR Newswire

NORTHBROOK, Ill., July 17, 2013

NORTHBROOK, Ill., July 17, 2013 /PRNewswire/ -- The Allstate Corporation
(NYSE: ALL) today announced a definitive agreement to sell its Lincoln Benefit
Life Company ("LBL") to Resolution Life Holdings, Inc. ("Resolution Life") for
$600 million, thereby exiting the consumer segment served by independent life
insurance and annuity agencies and reducing required capital in Allstate
Financial by approximately $1 billion. In addition, Allstate Financial will
discontinue issuing fixed annuities at year-end 2013 and utilize third party
annuity companies to ensure Allstate agencies and exclusive financial
specialists continue offering a broad suite of protection and retirement
products.

"The sale of Lincoln Benefit Life aligns with our strategy to serve distinct
customer segments with differentiated offerings in markets where we have a
competitive advantage. This will sharpen Allstate Financial's focus on the
Allstate agency channel while still providing a broad suite of products for
our customers," said Thomas J. Wilson, chairman, president and chief executive
officer of The Allstate Corporation. "This divestiture is one of many actions
we have taken to strategically focus Allstate Financial and deploy capital to
earn attractive risk-adjusted returns. This action also advances Allstate's
key priorities, including reducing exposure to spread-based business and
interest rates."

Transaction Details
Allstate has entered into a definitive agreement to sell LBL to Resolution
Life for $600 million, generating cash proceeds, inclusive of tax benefits, of
approximately $785 million. The transaction is expected to close by the end of
the year, subject to customary regulatory approvals. The sale of LBL is
estimated to result in a GAAP loss on sale in the range of $475 million to
$525 million, after-tax, and a reduction in GAAP equity, including the impact
to unrealized capital gains and losses, in the range of $575 million to $675
million. This transaction will result in a statutory gain of $350 million to
$400 million, increase Allstate's deployable capital by approximately $1
billion and reduce Allstate life and annuity reserves by $13 billion.

The business being sold had $341 million of premiums and contract charges,
representing 15% of Allstate Financial's 2012 total. Normal after-tax returns
have averaged approximately 1% of transaction reserves.

As a result of this transaction, Allstate will not sell new life or retirement
products through independent life insurance and annuity agencies. Allstate
will continue to service in-force LBL business sold through independent life
insurance and annuity agencies for a 12- to 18-month transition period, after
which this business will be administered by Resolution Life. Resolution Life
was founded by The Resolution Group, which has a consistent track record of
establishing businesses in the United Kingdom for the management of in-force
life insurance policies. Its operations in the United States are led by a
seasoned executive team with extensive life insurance experience. Resolution
Life has a long-term view of the market and is committed to retaining in-force
customers and providing excellent customer experiences and support.

Allstate agencies and exclusive financial specialists will continue to sell
LBL life products until Allstate Financial transitions these products to
another Allstate company. When the transaction closes, in-force LBL life and
all LBL payout annuity business sold through the Allstate agency channel will
continue to be reinsured and serviced through Allstate.

Allstate Financial Annuity Strategy
Consistent with Allstate's strategy to reduce its exposure to spread-based
business, Allstate Financial will cease issuing fixed annuities at year-end
2013. Allstate agencies and exclusive financial specialists will serve their
customers by continuing to offer a broad suite of life, retirement, savings,
long-term care and disability products that are either issued by Allstate or
provided by other companies.

"Allstate is committed to making the changes necessary to strengthen and grow
the Allstate Financial business by focusing on life insurance sold through
Allstate agencies and the worksite benefits market, where our competitive
advantages generate profitable growth," said Don Civgin, president and chief
executive officer of Allstate Financial.

Lincoln Benefit Life
Based in Lincoln, Neb., LBL was founded in 1938 and acquired by Allstate in
1984. Lincoln Benefit Life products are sold through independent agents by
means of master brokerage agencies, independent agents, and Allstate exclusive
agencies in all states except New York, the District of Columbia, Guam and the
U.S. Virgin Islands.

Resolution Life
Resolution Life Holdings, Inc. is a Delaware corporation established by
British financial services investor, The Resolution Group. Its strategy is to
acquire a number of life insurance businesses in the United States and focus
on the needs of existing customers over the long run, rather than actively
seeking new sales. Resolution Life is separate from Resolution Limited, a
company publicly traded on the London Stock Exchange, which also was founded
by The Resolution Group.

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer, serving approximately 16 million households through
its Allstate, Encompass, Esurance and Answer Financial brand names and
Allstate Financial business segment. Allstate branded insurance products
(auto, home, life and retirement) and services are offered through Allstate
agencies, independent agencies, and Allstate exclusive financial
representatives, as well as via www.allstate.com, www.allstate.com/financial
and 1-800 Allstate^®, and are widely known through the slogan "You're In Good
Hands With Allstate^®."

Forward-Looking Statements and Risk Factors
This news release contains forward-looking statements about reducing our
exposure to spread-based products and interest rates, generating a statutory
gain and deployable capital, reducing reserves, earning returns, projecting
the loss and reduction in GAAP equity generated through the sale of LBL, and
closing on the sale by year-end. These statements are subject to the Private
Securities Litigation Reform Act of 1995 and are based on management's
estimates, assumptions, and projections. Actual results may differ materially
from those projected based on the risk factors described below:

  oLower new sales of spread-based products could negatively impact
    investment portfolio levels and complicate settlement of expiring
    contracts, including forced sales of assets with unrealized capital
    losses.
  oRegulatory reforms and any additional legislative changes or regulatory
    requirements on the financial services industry may make it more expensive
    for us to conduct our business, or limit our ability to grow or to achieve
    profitability.
  oLimits on the ability of our insurance company subsidiaries to pay
    dividends could adversely affect holding company liquidity and the ability
    to distribute deployable capital.
  oThe loss on sale and reduction in GAAP equity calculations will fluctuate
    based on investment fair value valuations. Changing market conditions
    could result in actual amounts recorded being materially different from
    the estimates.
  oClosing of this transaction is subject to regulatory approvals which could
    affect the estimated closing date.

Allstate assumes no obligation to update any forward-looking statements as a
result of new information or future events or developments.

SOURCE The Allstate Corporation

Website: http://www.allstate.com
Contact: Allstate Media Contact: Maryellen Thielen or Brian Faith, (847)
402-5600, mediateam@allstate.com, or Allstate Investor Contact: Robert Block,
(847) 402-2800; or Resolution Life Contact: Elliot Sloane, (212) 446-1860,
esloane@sloanepr.com
 
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