4. 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 in April 2014. The estimated loss on disposition of $521 million, after-tax, was recorded in 2013, excluding any impact of unrealized net capital gains and losses. This transaction met the criteria for held for sale accounting. As a result, the related assets and liabilities are included as single line items in the asset and liability sections of the Consolidated Statement of Financial Position as of December 31, 2013. The following table summarizes the assets and liabilities held for sale as of December 31, 2013.
| ($ in millions) |
|
|||
|---|---|---|---|---|
|
Assets |
||||
|
Investments |
||||
|
Fixed income securities |
$ | 10,167 | ||
|
Mortgage loans |
1,367 | |||
|
Short-term investments |
160 | |||
|
Other investments |
289 | |||
| | | | | |
|
Total investments |
11,983 | |||
|
Deferred policy acquisition costs |
743 | |||
|
Reinsurance recoverables, net |
1,660 | |||
|
Accrued investment income |
109 | |||
|
Other assets |
79 | |||
|
Separate Accounts |
1,701 | |||
| | | | | |
|
Assets held for sale |
16,275 | |||
|
Less: Loss accrual |
(682 | ) | ||
| | | | | |
|
Total assets held for sale |
$ | 15,593 | ||
| | | | | |
| | | | | |
|
Liabilities |
||||
|
Reserve for life-contingent contract benefits |
$ | 1,894 | ||
|
Contractholder funds |
10,945 | |||
|
Unearned premiums |
12 | |||
|
Deferred income taxes |
151 | |||
|
Other liabilities and accrued expenses |
196 | |||
|
Separate Accounts |
1,701 | |||
| | | | | |
|
Total liabilities held for sale |
$ | 14,899 | ||
| | | | | |
| | | | | |
Included in shareholders' equity is $85 million of accumulated other comprehensive income related to assets held for sale.