Held for Sale Transaction

9 Months Ended

Sep. 30, 2013

Held for Sale Transaction

Held for Sale Transaction

3.  Held for Sale Transaction

On July 17, 2013, the Company entered into a definitive agreement with Resolution Life Holdings, Inc. to sell 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 for $600 million subject to certain adjustments as of the closing date.  LBL is reported in the Allstate Financial segment.  The transaction is subject to regulatory approvals and other customary closing conditions.  The Company expects the closing to occur during the first quarter of 2014.  The estimated loss on disposition of $475 million, after-tax, was recorded in third quarter 2013, excluding any impact of unrealized net capital gains and losses.  This transaction met the criteria for held for sale accounting.  As a result, the related assets and liabilities are included as single line items in the asset and liability sections of the Condensed Consolidated Statement of Financial Position as of September 30, 2013.  The following table summarizes the assets and liabilities held for sale as of September 30, 2013.

($ in millions)
Assets
Investments
Fixed income securities	$	10,514
Mortgage loans		1,400
Short-term investments		31
Other investments		294
Total investments		12,239
Cash		13
Deferred policy acquisition costs		741
Reinsurance recoverables, net		1,403
Accrued investment income		117
Other assets		52
Separate Accounts		1,655
Assets held for sale		16,220
Less: Loss accrual		(643)
Total assets held for sale	$	15,577
Liabilities
Reserve for life-contingent contract benefits	$	1,629
Contractholder funds		11,283
Unearned premiums		12
Deferred income taxes		114
Other liabilities and accrued expenses		215
Separate Accounts		1,655
Total liabilities held for sale	$	14,908

Included in shareholders’ equity is $111 million of accumulated other comprehensive income related to assets held for sale.