Disposition

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Disposition

Note 4 Disposition

On August 13, 2024, the Company entered into a share purchase agreement (the “Purchase Agreement”) with StanCorp Financial Group, Inc. to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business for approximately $2.0 billion in cash. The employer voluntary benefits business (“EVB”) is reported in the Allstate Health and Benefits segment, and beginning in the third quarter of 2024, the assets and liabilities of the business were classified as held for sale.

The transaction price less costs to sell exceeds the carrying value of the net assets related to this transaction, resulting in an estimated gain that will be recognized at closing of the transaction. The anticipated gain on the sale will be impacted by purchase price adjustments associated with certain pre-close transactions, changes in the carrying value of

net assets, changes in accumulated other comprehensive income and the related tax effects.

The amount of goodwill included in the carrying value is based on the relative fair value of the EVB business to the fair value of the Allstate Health and Benefits segment and is reported in other assets in the table below.

The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.

The EVB business generated $985 million of premiums and contract charges and adjusted net income of $85 million for the year ended December 31, 2024.

Major classes of assets and liabilities classified as held for sale
($ in millions)	December 31, 2024
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $1,809)	$	1,699
Short-term, at fair value (amortized cost $85)	85
Other investments, net	122
Total investments	1,906
Deferred policy acquisitions costs	521
Reinsurance recoverables, net	111
Other assets	554
Total assets held for sale	$	3,092
Liabilities
Reserve for future policy benefits	$	1,085
Contractholder funds	890
Other liabilities and accrued expenses	138
Total liabilities held for sale	$	2,113

Included in shareholders' equity is $72 million of accumulated other comprehensive loss related to assets and liabilities held for sale.