Aug 13 (Reuters) - Insurer Allstate has agreed

to sell its subsidiaries that provide employer voluntary

benefits to StanCorp Financial Group (The Standard) in a $2

billion cash deal, the company said in a regulatory filing on

Tuesday.

The deal comes at a time when the economy is seeing slowing

demand that has prompted companies to exit ventures not in sync

with their business objectives.

The sale is the first step in insurer's strategic

decision to enable its health & benefits businesses - employer

voluntary benefits, individual and group health - to realize

their full growth potential by merging them with its ventures

that have additional capabilities, the company said.

"The sale is expected to generate a gain of about $600

million and increase deployable capital by $1.6 billion," Chief

Financial Officer Jess Merten said.

The businesses being sold had revenues of $535 million

and adjusted net income of $45 million for the first half of

2024.

Late in July, Allstate ( ALL ) posted a second-quarter profit,

compared with a year-earlier loss.

J.P. Morgan and Ardea Partners acted as financial

advisors to Allstate ( ALL ) while Citi acted as exclusive financial

advisor to The Standard.