Acquisition and Disposition

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Acquisition and Disposition

Acquisition and Disposition

On November 28, 2016, the Company announced an agreement to acquire SquareTrade Holding Company, Inc. (“SquareTrade”), a consumer product protection plan provider that distributes through many of America’s major retailers, for approximately $1.4 billion in cash. SquareTrade provides protection plans for consumer appliances and electronics, such as TVs, smartphones and computers. This will broaden Allstate’s unique product offerings to better meet consumers’ needs. The transaction closed on January 3, 2017.

Due to the limited time since the closing date, the initial accounting for the acquisition is incomplete. As a result, the Company is unable to provide amounts recognized as of the closing date for the major classes of assets acquired and liabilities assumed. The Company will include this information in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017.

On April 1, 2014, the Company sold Lincoln Benefit Life Company (“LBL”), LBL’s life insurance business generated through independent master brokerage agencies, and all of LBL’s deferred fixed annuity and long-term care insurance business to Resolution Life Holdings, Inc. The gross sale price was $797 million, representing $596 million of cash and the retention of tax benefits. The loss on disposition in 2014 was $101 million, pre-tax ($60 million, after-tax) and included a $22 million, pre-tax, reduction in goodwill.