Disposition

3 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]


Note 3			Dispositions

Employer voluntary benefits (“EVB”) business 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 EVB business is reported in the Health and Benefits segment, and the assets and liabilities of the business are classified as held for sale. The transaction closed on April 1, 2025, and the Company expects to record a gain on the sale in the second quarter of 2025.

The EVB business generated $243 million of premiums and contract charges and $22 million of adjusted net income for the three months ended March 31, 2025.

Group health business disposition On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution,

LLC, comprising the group health business for approximately $1.25 billion in cash. The group health business is reported in the Health and Benefits segment, and beginning in the first quarter of 2025, the assets and liabilities of the business are classified as held for sale. The transaction is expected to close in 2025, subject to regulatory approvals and other customary closing conditions.

The transaction price less costs to sell exceeds the carrying value of net assets related to the transaction, resulting in an expected 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 group health business generated $124 million of premiums and contract charges and adjusted net income of $12 million for the three months ended March 31, 2025.


Major classes of assets and liabilities classified as held for sale (1)
	March 31, 2025						December 31, 2024
($ in millions)	EVB		Group health		Total		EVB (1)
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $1,764, $208, $1,972 and $1,809)	$	1,676	$	205	$	1,881	$	1,699


Short-term, at fair value (amortized cost $64, $13, $77 and $85)	64		13		77		85
Other investments, net	116		—		116		122
Total investments	1,856		218		2,074		1,906
Cash	44		157		201		—
Deferred policy acquisitions costs	525		1		526		521
Reinsurance recoverables, net	117		42		159		111

Other assets	527		299		826		554
Total assets held for sale	$	3,069	$	717	$	3,786	$	3,092

Liabilities
Reserve for future policy benefits	$	1,096	$	201	1,297		$	1,085
Contractholder funds	882		—		882		890
Other liabilities and accrued expenses	138		58		196		138
Total liabilities held for sale	$	2,116	$	259	$	2,375	$	2,113

(1) Assets and liabilities of the EVB business were classified as held for sale as of December 31, 2024 and March 31, 2025. Assets and liabilities of the group health business were classified as held for sale as of March 31, 2025.

Included in shareholders' equity is $54 million and $72 million of accumulated other comprehensive loss related to assets and liabilities held for sale as of March 31, 2025 and December 31, 2024.