UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) February 6, 2017
ALLSTATE LIFE INSURANCE COMPANY
(Exact name of registrant as specified in charter)
Illinois | 0-31248 | 36-2554642 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3075 Sanders Road, Northbrook, Illinois | 60062 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code (847) 402-5000 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Section 2 – Financial Information
Item 2.02. Results of Operations and Financial Condition.
The Registrant furnishes below its Consolidated Statements of Operations for the three years ended December 31, 2016, 2015 and 2014 and Consolidated Statements of Financial Position as of December 31, 2016 and 2015, prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”):
ALLSTATE LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions) | Year Ended December 31, | ||||||||||
2016 | 2015 | �� | 2014 | ||||||||
Revenues | (unaudited) | ||||||||||
Premiums | $ | 592 | $ | 600 | $ | 589 | |||||
Contract charges | 717 | 738 | 847 | ||||||||
Net investment income | 1,659 | 1,819 | 2,081 | ||||||||
Realized capital gains and losses: | |||||||||||
Total other-than-temporary impairment (“OTTI”) losses | (120 | ) | (144 | ) | (54 | ) | |||||
OTTI losses reclassified to (from) other comprehensive income | 7 | 16 | (1 | ) | |||||||
Net OTTI losses recognized in earnings | (113 | ) | (128 | ) | (55 | ) | |||||
Sales and other realized capital gains and losses | 36 | 393 | 198 | ||||||||
Total realized capital gains and losses | (77 | ) | 265 | 143 | |||||||
2,891 | 3,422 | 3,660 | |||||||||
Costs and expenses | |||||||||||
Contract benefits | 1,387 | 1,406 | 1,452 | ||||||||
Interest credited to contractholder funds | 677 | 717 | 891 | ||||||||
Amortization of deferred policy acquisition costs | 134 | 151 | 162 | ||||||||
Operating costs and expenses | 219 | 273 | 310 | ||||||||
Restructuring and related charges | 1 | — | 2 | ||||||||
Interest expense | 15 | 16 | 16 | ||||||||
2,433 | 2,563 | 2,833 | |||||||||
Gain (loss) on disposition of operations | 5 | 3 | (68 | ) | |||||||
Income from operations before income tax expense | 463 | 862 | 759 | ||||||||
Income tax expense | 144 | 301 | 233 | ||||||||
Net income | $ | 319 | $ | 561 | $ | 526 |
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ALLSTATE LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
($ in millions, except par value data) | December 31, | ||||||
2016 | 2015 | ||||||
Assets | (unaudited) | ||||||
Investments | |||||||
Fixed income securities, at fair value (amortized cost $23,112 and $23,770) | $ | 24,222 | $ | 24,629 | |||
Mortgage loans | 3,938 | 3,781 | |||||
Equity securities, at fair value (cost $1,429 and $1,526) | 1,511 | 1,542 | |||||
Limited partnership interests | 2,776 | 2,295 | |||||
Short-term, at fair value (amortized cost $566 and $816) | 566 | 816 | |||||
Policy loans | 563 | 572 | |||||
Other | 1,491 | 1,327 | |||||
Total investments | 35,067 | 34,962 | |||||
Cash | 138 | 104 | |||||
Deferred policy acquisition costs | 1,187 | 1,314 | |||||
Reinsurance recoverable from non-affiliates | 2,339 | 2,407 | |||||
Reinsurance recoverable from affiliates | 452 | 464 | |||||
Accrued investment income | 273 | 278 | |||||
Other assets | 410 | 510 | |||||
Separate Accounts | 3,373 | 3,639 | |||||
Total assets | $ | 43,239 | $ | 43,678 | |||
Liabilities | |||||||
Contractholder funds | $ | 19,470 | $ | 20,542 | |||
Reserve for life-contingent contract benefits | 11,322 | 11,394 | |||||
Unearned premiums | 5 | 5 | |||||
Payable to affiliates, net | 52 | 55 | |||||
Other liabilities and accrued expenses | 952 | 849 | |||||
Deferred income taxes | 1,191 | 986 | |||||
Notes due to related parties | 465 | 275 | |||||
Separate Accounts | 3,373 | 3,639 | |||||
Total liabilities | 36,830 | 37,745 | |||||
Shareholder’s Equity | |||||||
Redeemable preferred stock - series A, $100 par value, 1,500,000 shares authorized, none issued | — | — | |||||
Redeemable preferred stock - series B, $100 par value, 1,500,000 shares authorized, none issued | — | — | |||||
Common stock, $227 par value, 23,800 shares authorized and outstanding | 5 | 5 | |||||
Additional capital paid-in | 1,990 | 1,990 | |||||
Retained income | 3,736 | 3,417 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized net capital gains and losses: | |||||||
Unrealized net capital gains and losses on fixed income securities with OTTI | 39 | 41 | |||||
Other unrealized net capital gains and losses | 733 | 527 | |||||
Unrealized adjustment to DAC, DSI and insurance reserves | (91 | ) | (40 | ) | |||
Total unrealized net capital gains and losses | 681 | 528 | |||||
Unrealized foreign currency translation adjustments | (3 | ) | (7 | ) | |||
Total accumulated other comprehensive income | 678 | 521 | |||||
Total shareholder’s equity | 6,409 | 5,933 | |||||
Total liabilities and shareholder’s equity | $ | 43,239 | $ | 43,678 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ALLSTATE LIFE INSURANCE COMPANY | |||
(Registrant) | |||
By: | /s/ Samuel H. Pilch | ||
Name: Samuel H. Pilch | |||
Title: Senior Group Vice President and Controller | |||
Date: February 6, 2017 |
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