Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 15, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-11840 | |
Entity Registrant Name | ALLSTATE CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3871531 | |
Entity Address, Address Line One | 3100 Sanders Road | |
Entity Address, City or Town | Northbrook | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60062 | |
City Area Code | 847 | |
Local Phone Number | 402-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 263,915,332 | |
Entity Central Index Key | 0000899051 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, par value $.01 per share | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | ALL | |
Security Exchange Name | NYSE | |
Common Stock, par value $.01 per share | CHICAGO STOCK EXCHANGE, INC | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | ALL | |
Security Exchange Name | CHX | |
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053 | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053 | |
Trading Symbol | ALL.PR.B | |
Security Exchange Name | NYSE | |
Series H Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H | |
Trading Symbol | ALL PR H | |
Security Exchange Name | NYSE | |
Series I Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I | |
Trading Symbol | ALL PR I | |
Security Exchange Name | NYSE | |
Series J Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares represent 1/1,000th of a share of 7.375% Noncumulative Preferred Stock, Series J | |
Trading Symbol | ALL PR J | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Other revenue | $ 669 | $ 561 |
Net investment income | 764 | 575 |
Net gains (losses) on investments and derivatives | (164) | 14 |
Total revenues | 15,259 | 13,786 |
Costs and expenses | ||
Property and casualty insurance claims and claims expense | 9,501 | 10,326 |
Accident, health and other policy benefits | 296 | 265 |
Amortization of deferred policy acquisition costs | 1,939 | 1,744 |
Operating costs and expenses | 1,885 | 1,716 |
Pension and other postretirement remeasurement (gains) losses | (2) | (53) |
Restructuring and related charges | 10 | 27 |
Amortization of purchased intangibles | 69 | 81 |
Interest expense | 97 | 86 |
Total costs and expenses | 13,795 | 14,192 |
Income (loss) from operations before income tax expense | 1,464 | (406) |
Income tax expense (benefit) | 266 | (85) |
Net income (loss) | 1,198 | (321) |
Less: Net loss attributable to noncontrolling interest | (20) | (1) |
Net income (loss) attributable to Allstate | 1,218 | (320) |
Less: Preferred stock dividends | 29 | 26 |
Net income (loss) applicable to common shareholders, basic | 1,189 | (346) |
Net income (loss) applicable to common shareholders, diluted | $ 1,189 | $ (346) |
Earnings per common share: | ||
Net income (loss) applicable to common shareholders per common share - Basic (in dollars per share) | $ 4.51 | $ (1.31) |
Weighted average common shares - Basic (in shares) | 263.5 | 263.5 |
Net income (loss) applicable to common shareholders per common share - Diluted (in dollars per share) | $ 4.46 | $ (1.31) |
Weighted average common shares - Diluted (in shares) | 266.5 | 263.5 |
Property and casualty insurance premiums | ||
Revenues | ||
Insurance premiums and contract charges | $ 13,512 | $ 12,173 |
Accident and health insurance premiums and contract charges | ||
Revenues | ||
Insurance premiums and contract charges | $ 478 | $ 463 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 1,198 | $ (321) |
Changes in: | ||
Unrealized net capital gains and losses | (215) | 682 |
Unrealized foreign currency translation adjustments | 8 | 50 |
Unamortized pension and other postretirement prior service credit | (1) | (4) |
Discount rate for reserve for future policy benefits | 25 | (9) |
Other comprehensive (loss) income, after-tax | (183) | 719 |
Comprehensive income | 1,015 | 398 |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (19) | 4 |
Comprehensive income attributable to Allstate | $ 1,034 | $ 394 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position (unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Fixed income securities, at fair value (amortized cost, net $51,837 and $49,649) | $ 50,777 | $ 48,865 |
Equity securities, at fair value (cost $2,172 and $2,244) | 2,383 | 2,411 |
Mortgage loans, net | 815 | 822 |
Limited partnership interests | 8,562 | 8,380 |
Short-term, at fair value (amortized cost $4,320 and $5,145) | 4,318 | 5,144 |
Other investments, net | 1,004 | 1,055 |
Total investments | 67,859 | 66,677 |
Cash | 850 | 722 |
Premium installment receivables, net | 10,573 | 10,044 |
Deferred policy acquisition costs | 5,946 | 5,940 |
Reinsurance and indemnification recoverables, net | 8,726 | 8,809 |
Accrued investment income | 567 | 539 |
Deferred income taxes | 161 | 219 |
Property and equipment, net | 802 | 859 |
Goodwill | 3,502 | 3,502 |
Other assets, net | 6,255 | 6,051 |
Total assets | 105,241 | 103,362 |
Liabilities | ||
Reserve for property and casualty insurance claims and claims expense | 40,143 | 39,858 |
Reserve for future policy benefits | 1,325 | 1,347 |
Contractholder funds | 890 | 888 |
Unearned premiums | 24,945 | 24,709 |
Claim payments outstanding | 1,491 | 1,353 |
Other liabilities and accrued expenses | 10,029 | 9,635 |
Debt | 7,938 | 7,942 |
Total liabilities | 86,761 | 85,732 |
Commitments and Contingent Liabilities (Note 13) | ||
Equity | ||
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 82.0 thousand shares issued and outstanding, $2,050 aggregate liquidation preference | 2,001 | 2,001 |
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 264 million and 262 million shares outstanding | 9 | 9 |
Additional capital paid-in | 3,894 | 3,854 |
Retained income | 50,662 | 49,716 |
Treasury stock, at cost (636 million and 638 million shares) | (37,044) | (37,110) |
Accumulated other comprehensive income (loss): | ||
Unrealized net capital gains and losses | (819) | (604) |
Unrealized foreign currency translation adjustments | (90) | (98) |
Unamortized pension and other postretirement prior service credit | 12 | 13 |
Discount rate for reserve for future policy benefits | 14 | (11) |
Total accumulated other comprehensive loss | (883) | (700) |
Total Allstate shareholders’ equity | 18,639 | 17,770 |
Noncontrolling interest | (159) | (140) |
Total equity | 18,480 | 17,630 |
Total liabilities and equity | $ 105,241 | $ 103,362 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Financial Position (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Fixed income securities, at fair value, amortized cost | $ 51,837 | $ 49,649 |
Equity securities, at fair value, cost | 2,172 | 2,244 |
Short-term, at fair value, amortized cost | $ 4,320 | $ 5,145 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 82,000 | 82,000 |
Preferred stock, shares outstanding (in shares) | 82,000 | 82,000 |
Preferred stock, value aggregate liquidation preference | $ 2,050 | $ 2,050 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares outstanding (in shares) | 264,000,000 | 262,000,000 |
Treasury stock, shares (in shares) | 636,000,000 | 638,000,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders’ Equity (unaudited) - USD ($) $ in Millions | Total | Preferred stock par value | Preferred stock additional capital paid-in | Common stock par value | Common stock additional capital paid-in | Retained income | Treasury stock | Accumulated other comprehensive income (loss) | Noncontrolling interest |
Increase (decrease) in equity | |||||||||
Total equity | $ 3,788 | $ 50,970 | $ (36,857) | $ (2,392) | $ (125) | ||||
Balance, beginning of period at Dec. 31, 2022 | 3,788 | 50,970 | (36,857) | (2,392) | (125) | ||||
Increase (decrease) in equity | |||||||||
Equity incentive plans activity, net | (8) | ||||||||
Net income (loss) | $ (321) | (320) | (1) | ||||||
Dividends on common stock (declared per share of $0.92 and $0.89) | (236) | ||||||||
Dividends on preferred stock | (26) | ||||||||
Shares acquired | (153) | ||||||||
Shares reissued under equity incentive plans, net | 30 | ||||||||
Change in unrealized net capital gains and losses | 682 | 682 | 5 | ||||||
Change in unrealized foreign currency translation adjustments | 50 | 50 | |||||||
Change in unamortized pension and other postretirement prior service credit | (4) | (4) | |||||||
Change in discount rate for reserve for future policy benefits | (9) | (9) | |||||||
Balance, end of period at Mar. 31, 2023 | 17,373 | $ 0 | $ 1,970 | $ 9 | 3,780 | 50,388 | (36,980) | (1,673) | (121) |
Increase (decrease) in equity | |||||||||
Total Allstate shareholders’ equity | 17,494 | ||||||||
Total equity | 17,373 | 0 | 1,970 | 9 | 3,780 | 50,388 | (36,980) | (1,673) | (121) |
Total Allstate shareholders’ equity | 17,770 | ||||||||
Total equity | 17,630 | 3,854 | 49,716 | (37,110) | (700) | (140) | |||
Balance, beginning of period at Dec. 31, 2023 | 17,630 | 3,854 | 49,716 | (37,110) | (700) | (140) | |||
Increase (decrease) in equity | |||||||||
Equity incentive plans activity, net | 40 | ||||||||
Net income (loss) | 1,198 | 1,218 | (20) | ||||||
Dividends on common stock (declared per share of $0.92 and $0.89) | (243) | ||||||||
Dividends on preferred stock | (29) | ||||||||
Shares acquired | 0 | ||||||||
Shares reissued under equity incentive plans, net | 66 | ||||||||
Change in unrealized net capital gains and losses | (215) | (215) | 1 | ||||||
Change in unrealized foreign currency translation adjustments | 8 | 8 | |||||||
Change in unamortized pension and other postretirement prior service credit | (1) | (1) | |||||||
Change in discount rate for reserve for future policy benefits | 25 | 25 | |||||||
Balance, end of period at Mar. 31, 2024 | 18,480 | 0 | 2,001 | 9 | 3,894 | 50,662 | (37,044) | (883) | (159) |
Increase (decrease) in equity | |||||||||
Total Allstate shareholders’ equity | 18,639 | ||||||||
Total equity | $ 18,480 | $ 0 | $ 2,001 | $ 9 | $ 3,894 | $ 50,662 | $ (37,044) | $ (883) | $ (159) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders’ Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock (in dollars per share) | $ 0.92 | $ 0.89 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income (loss) | $ 1,198 | $ (321) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation, amortization and other non-cash items | 132 | 177 |
Net (gains) losses on investments and derivatives | 164 | (14) |
Pension and other postretirement remeasurement (gains) losses | (2) | (53) |
Changes in: | ||
Policy benefits and other insurance reserves | 323 | 1,080 |
Unearned premiums | 267 | 199 |
Deferred policy acquisition costs | (12) | (29) |
Premium installment receivables, net | (549) | (317) |
Reinsurance recoverables, net | 82 | 91 |
Income taxes | 217 | (125) |
Other operating assets and liabilities | (154) | (87) |
Net cash provided by operating activities | 1,666 | 601 |
Proceeds from sales | ||
Fixed income securities | 6,719 | 7,008 |
Equity securities | 500 | 3,739 |
Limited partnership interests | 130 | 414 |
Other investments | 84 | 55 |
Investment collections | ||
Fixed income securities | 538 | 646 |
Mortgage loans | 7 | 22 |
Other investments | 6 | 25 |
Investment purchases | ||
Fixed income securities | (9,592) | (8,424) |
Equity securities | (430) | (1,187) |
Limited partnership interests | (237) | (226) |
Mortgage loans | 0 | (41) |
Other investments | (40) | (73) |
Change in short-term and other investments, net | 966 | (2,675) |
Purchases of property and equipment, net | (41) | (79) |
Proceeds from sale of property and equipment | 18 | 0 |
Net cash used in investing activities | (1,372) | (796) |
Cash flows from financing activities | ||
Proceeds from issuance of debt | 0 | 744 |
Redemption and repayment of debt | 0 | (250) |
Contractholder fund deposits | 34 | 33 |
Contractholder fund withdrawals | (8) | (9) |
Dividends paid on common stock | (233) | (224) |
Dividends paid on preferred stock | (29) | (26) |
Treasury stock purchases | 0 | (153) |
Shares reissued under equity incentive plans, net | 80 | 6 |
Other | (10) | 0 |
Net cash (used in) provided by financing activities | (166) | 121 |
Net increase (decrease) in cash | 128 | (74) |
Cash at beginning of period | 722 | 736 |
Cash at end of period | $ 850 | $ 662 |
General
General | 3 Months Ended |
Mar. 31, 2024 | |
General [Abstract] | |
General | Note 1 General Basis of presentation The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company (collectively referred to as the “Company” or “Allstate”) and variable interest entities (“VIEs”) in which the Company is considered a primary beneficiary. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of March 31, 2024 and for the three month periods ended March 31, 2024 and 2023 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. Certain amounts have been reclassified to conform to current year presentation. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated. Pending accounting standard Accounting for joint ventures In August 2023, the Financial Accounting Standards Board (“FASB”) issued guidance requiring a joint venture to initially measure assets contributed and liabilities assumed at fair value as of the formation date. The new guidance will be applied prospectively for joint ventures with a formation date on or after January 1, 2025. The impact of the adoption is not expected to be material to the Company’s results of operations or financial position. Segment reporting In November 2023, the FASB issued guidance expanding segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of reportable segments’ profit or loss and assets. The guidance is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024 and is to be applied retrospectively, with early adoption permitted. The Company is currently evaluating the impact of adopting the guidance to its disclosures. Income tax disclosures In December 2023, the FASB issued guidance enhancing various aspects of income tax disclosures. The guidance requires a tabular reconciliation between statutory and effective income tax expense (benefit) with both amounts and percentages for a list of required categories. For certain required categories where an individual category is at least five percent of the statutory tax amount, the required category must be further broken out by nature and, for foreign tax effects, jurisdiction. Additionally, entities must disclose income taxes paid, net of refunds received, broken out between federal, state and foreign, and amounts paid, net of refunds received, to an individual jurisdiction when five percent or more of the total income taxes paid, net of refunds received. All requirements in the guidance are annual in nature, and the guidance is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The guidance only affects disclosures and will have no impact on the Company’s consolidated financial statements. The Company is currently evaluating the impact of adopting the guidance to its disclosures. Climate disclosures In March 2024, the Securities and Exchange Commission (“SEC”) adopted a final rule requiring registrants to disclose certain climate-related information in their registration statements and annual reports. The rule requires the disclosure of qualitative and quantitative information, with certain information, such as financial statement effects of severe weather events, included in the notes to the audited financial statements. Other disclosure requirements include material climate-related risks, processes to manage and govern those risks, disclosure of targets if the targets materially affect or are reasonably likely to materially affect the Company, and, if material, disclosure of certain greenhouse gas emissions. On April 4, 2024, the SEC issued a voluntary stay of the final rule, pending the outcome of pending litigation. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 2 Earnings per Common Share Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options, unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. Computation of basic and diluted earnings per common share (In millions, except per share data) Three months ended March 31, 2024 2023 Numerator: Net income (loss) $ 1,198 $ (321) Less: Net loss attributable to noncontrolling interest (20) (1) Net income (loss) attributable to Allstate 1,218 (320) Less: Preferred stock dividends 29 26 Net income (loss) applicable to common shareholders $ 1,189 $ (346) Denominator: Weighted average common shares outstanding 263.5 263.5 Effect of dilutive potential common shares (1) : Stock options 2.5 — Restricted stock units (non-participating) and performance stock awards 0.5 — Weighted average common and dilutive potential common shares outstanding 266.5 263.5 Earnings per common share - Basic $ 4.51 $ (1.31) Earnings per common share - Diluted (1) $ 4.46 $ (1.31) Anti-dilutive options excluded from diluted earnings per common share 0.7 1.1 Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) — 2.6 (1) As a result of the net loss reported for the three month period ended March 31, 2023, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note 3 Reportable Segments Measuring segment profit or loss The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments. Allstate Protection and Run-off Property Liability segments comprise Property-Liability. The Company does not allocate investment income, net gains and losses on investments and derivatives, or assets to the Allstate Protection and Run-off Property Liability segments. Management reviews assets at the Property-Liability, Protection Services, Allstate Health and Benefits, and Corporate and Other levels for decision-making purposes. Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses (“losses”), amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP. Adjusted net income is net income (loss) applicable to common shareholders, excluding: • Net gains and losses on investments and derivatives • Pension and other postretirement remeasurement gains and losses • Amortization or impairment of purchased intangibles • Gain or loss on disposition • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years • Income tax expense or benefit on reconciling items A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below. Reportable segments financial performance Three months ended March 31, ($ in millions) 2024 2023 Underwriting income (loss) by segment Allstate Protection $ 903 $ (998) Run-off Property-Liability (5) (3) Total Property-Liability 898 (1,001) Adjusted net income (loss) by segment, after-tax Protection Services 54 34 Allstate Health and Benefits 56 56 Corporate and Other (106) (89) Reconciling items Allstate Protection and Run-off Property-Liability net investment income 702 509 Net gains (losses) on investments and derivatives (164) 14 Pension and other postretirement remeasurement gains (losses) 2 53 Amortization of purchased intangibles (1) (18) (24) Gain (loss) on disposition 4 9 Income tax (expense) benefit on reconciling items (2) (259) 92 Total reconciling items 267 653 Less: Net loss attributable to noncontrolling interest (3) (20) (1) Net income (loss) applicable to common shareholders $ 1,189 $ (346) (1) Excludes amortization of purchased intangibles in Property-Liability, which is included above in underwriting income. (2) The tax computation of the reporting segments and income tax benefit (expense) on reconciling items to net income (loss) are computed discretely based on the tax law of the jurisdictions applicable to the reporting entities. (3) Reflects net loss attributable to noncontrolling interest in Property-Liability. Reportable segments revenue information ($ in millions) Three months ended March 31, 2024 2023 Property-Liability Insurance premiums Auto $ 8,778 $ 7,908 Homeowners 3,154 2,810 Other personal lines 659 562 Commercial lines 169 232 Other business lines 140 123 Allstate Protection 12,900 11,635 Run-off Property-Liability — — Total Property-Liability insurance premiums 12,900 11,635 Other revenue 430 353 Net investment income 702 509 Net gains (losses) on investments and derivatives (162) 12 Total Property-Liability 13,870 12,509 Protection Services Protection plans 439 361 Roadside assistance 47 49 Protection and insurance products 126 128 Intersegment premiums and service fees (1) 35 33 Other revenue 85 84 Net investment income 21 16 Net gains (losses) on investments and derivatives (5) (1) Total Protection Services 748 670 Allstate Health and Benefits Employer voluntary benefits 248 255 Group health 118 107 Individual health 112 101 Other revenue 134 101 Net investment income 23 19 Net gains (losses) on investments and derivatives 2 2 Total Allstate Health and Benefits 637 585 Corporate and Other Other revenue 20 23 Net investment income 18 31 Net gains (losses) on investments and derivatives 1 1 Total Corporate and Other 39 55 Intersegment eliminations (1) (35) (33) Consolidated revenues $ 15,259 $ 13,786 (1) Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the condensed consolidated financial statements. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Investments | Note 4 Investments Portfolio composition ($ in millions) March 31, 2024 December 31, 2023 Fixed income securities, at fair value $ 50,777 $ 48,865 Equity securities, at fair value 2,383 2,411 Mortgage loans, net 815 822 Limited partnership interests 8,562 8,380 Short-term investments, at fair value 4,318 5,144 Other investments, net 1,004 1,055 Total $ 67,859 $ 66,677 Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses March 31, 2024 U.S. government and agencies $ 10,142 $ 56 $ (168) $ 10,030 Municipal 5,491 61 (160) 5,392 Corporate 33,110 273 (1,114) 32,269 Foreign government 1,255 4 (19) 1,240 ABS 1,839 14 (7) 1,846 Total fixed income securities $ 51,837 $ 408 $ (1,468) $ 50,777 December 31, 2023 U.S. government and agencies $ 8,624 $ 114 $ (119) $ 8,619 Municipal 6,049 109 (152) 6,006 Corporate 31,951 397 (1,143) 31,205 Foreign government 1,286 17 (13) 1,290 ABS 1,739 13 (7) 1,745 Total fixed income securities $ 49,649 $ 650 $ (1,434) $ 48,865 Scheduled maturities for fixed income securities ($ in millions) March 31, 2024 December 31, 2023 Amortized cost, net Fair value Amortized cost, net Fair value Due in one year or less $ 3,374 $ 3,333 $ 3,422 $ 3,374 Due after one year through five years 23,324 22,678 23,218 22,614 Due after five years through ten years 14,894 14,560 12,553 12,273 Due after ten years 8,406 8,360 8,717 8,859 49,998 48,931 47,910 47,120 ABS 1,839 1,846 1,739 1,745 Total $ 51,837 $ 50,777 $ 49,649 $ 48,865 Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS is shown separately because of potential prepayment of principal prior to contractual maturity dates. Net investment income ($ in millions) Three months ended March 31, 2024 2023 Fixed income securities $ 526 $ 390 Equity securities 15 11 Mortgage loans 9 8 Limited partnership interests 199 134 Short-term investments 67 66 Other investments 21 41 Investment income, before expense 837 650 Investment expense (73) (75) Net investment income $ 764 $ 575 Net gains (losses) on investments and derivatives by asset type ($ in millions) Three months ended March 31, 2024 2023 Fixed income securities $ (101) $ (136) Equity securities 62 167 Limited partnership interests 8 22 Derivatives (8) (52) Other investments (2) 13 Other (1) (123) — Net gains (losses) on investments and derivatives $ (164) $ 14 (1) Related to the valuation allowance established for the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”). See Note 7 for further detail. Net gains (losses) on investments and derivatives by transaction type ($ in millions) Three months ended March 31, 2024 2023 Sales $ (111) $ (120) Credit losses (115) (12) Valuation change of equity investments (1) 70 198 Valuation change and settlements of derivatives (8) (52) Net gains (losses) on investments and derivatives $ (164) $ 14 (1) Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities. Gross realized gains (losses) on sales of fixed income securities ($ in millions) Three months ended March 31, 2024 2023 Gross realized gains $ 41 $ 46 Gross realized losses (146) (173) Net appreciation (decline) recognized in net income for assets that are still held ($ in millions) Three months ended March 31, 2024 2023 Equity securities $ 61 $ 20 Limited partnership interests carried at fair value 30 16 Total $ 91 $ 36 Credit losses recognized in net income ($ in millions) Three months ended March 31, 2024 2023 Assets Fixed income securities: Corporate $ 4 $ (9) Total fixed income securities 4 (9) Other investments Bank loans 3 (3) Other (123) — Total credit losses by asset type $ (116) $ (12) Liabilities Commitments to fund commercial mortgage loans and bank loans 1 — Total $ (115) $ (12) Unrealized net capital gains and losses included in Accumulated Other Comprehensive Income (“AOCI”) ($ in millions) Fair value Gross unrealized Unrealized net gains (losses) March 31, 2024 Gains Losses Fixed income securities $ 50,777 $ 408 $ (1,468) $ (1,060) Short-term investments 4,318 — (2) (2) Derivative instruments — — (2) (2) Limited partnership interests — Unrealized net capital gains and losses, pre-tax (1,064) Reclassification of noncontrolling interest 12 Deferred income taxes 233 Unrealized net capital gains and losses, after-tax $ (819) December 31, 2023 Fixed income securities $ 48,865 $ 650 $ (1,434) $ (784) Short-term investments 5,144 — (1) (1) Derivative instruments — — (2) (2) Limited partnership interests (1) (4) Unrealized net capital gains and losses, pre-tax (791) Reclassification of noncontrolling interest 13 Deferred income taxes 174 Unrealized net capital gains and losses, after-tax $ (604) (1) Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of the equity method of accounting (“EMA”) limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable. Change in unrealized net capital gains (losses) ($ in millions) Three months ended March 31, 2024 Fixed income securities $ (276) Short-term investments (1) Derivative instruments — Limited partnership interests 4 Total (273) Reclassification of noncontrolling interest (1) Deferred income taxes 59 Change in unrealized net capital gains and losses, after-tax $ (215) Carrying value for limited partnership interests ($ in millions) March 31, 2024 December 31, 2023 EMA Fair Value Total EMA Fair Value Total Private equity $ 6,144 $ 1,122 $ 7,266 $ 6,015 $ 1,139 $ 7,154 Real estate 1,114 24 1,138 1,059 26 1,085 Other (1) 158 — 158 141 — 141 Total $ 7,416 $ 1,146 $ 8,562 $ 7,215 $ 1,165 $ 8,380 (1) Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities. Short-term investments Short-term investments, including money market funds, commercial paper, U.S. Treasury bills and other short-term investments, are carried at fair value. As of March 31, 2024 and December 31, 2023, the fair value of short-term investments totaled $4.32 billion and $5.14 billion, respectively. Other investments Other investments primarily consist of bank loans, real estate, policy loans and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net. Policy loans are carried at unpaid principal balances. Real estate is carried at cost less accumulated depreciation. Derivatives are carried at fair value. Other investments by asset type ($ in millions) March 31, 2024 December 31, 2023 Bank loans, net $ 164 $ 224 Real estate 717 709 Policy loans 120 119 Derivatives 1 1 Other 2 2 Total $ 1,004 $ 1,055 Portfolio monitoring and credit losses Fixed income securities The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security that may require a credit loss allowance . For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance would be written-off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses recorded in earnings. If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s current effective rate and is compared to the amortized cost of the security. The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security is considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings. When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company removes amounts previously recognized in the credit loss allowance. Recoveries after write-offs are recognized when received. Accrued interest excluded from the amortized cost of fixed income securities totaled $527 million and $495 million as of March 31, 2024 and December 31, 2023, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. The Company monitors accrued interest and writes off amounts when they are not expected to be received. The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. The process also includes the monitoring of other credit loss indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential credit losses using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of credit losses for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value requires a credit loss allowance are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the extent to which the fair value has been less than amortized cost. Rollforward of credit loss allowance for fixed income securities Three months ended March 31, ($ in millions) 2024 2023 Beginning balance $ (36) $ (13) Credit losses on securities for which credit losses not previously reported (3) — Net (increases) decreases related to credit losses previously reported 4 (9) (Increase) decrease of allowance related to sales and other 3 — Write-offs 15 — Ending balance $ (17) $ (22) Components of credit loss allowance as of March 31 Corporate bonds $ (16) $ (20) ABS (1) (2) Total $ (17) $ (22) Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1) ($ in millions) Less than 12 months 12 months or more Total unrealized losses Number of issues Fair value Unrealized losses Number of issues Fair value Unrealized losses March 31, 2024 Fixed income securities U.S. government and agencies 118 $ 3,867 $ (85) 104 $ 2,196 $ (83) $ (168) Municipal 397 915 (9) 1,600 2,106 (151) (160) Corporate 493 5,317 (84) 1,962 15,133 (1,030) (1,114) Foreign government 40 453 (3) 74 327 (16) (19) ABS 48 214 (2) 118 141 (5) (7) Total fixed income securities 1,096 $ 10,766 $ (183) 3,858 $ 19,903 $ (1,285) $ (1,468) Investment grade fixed income securities 1,032 $ 10,551 $ (173) 3,518 $ 17,647 $ (1,121) $ (1,294) Below investment grade fixed income securities 64 215 (10) 340 2,256 (164) (174) Total fixed income securities 1,096 $ 10,766 $ (183) 3,858 $ 19,903 $ (1,285) $ (1,468) December 31, 2023 Fixed income securities U.S. government and agencies 63 $ 2,554 $ (38) 117 $ 2,513 $ (81) $ (119) Municipal 271 400 (4) 1,784 2,245 (148) (152) Corporate 251 2,225 (48) 2,106 17,319 (1,095) (1,143) Foreign government 7 31 — 75 356 (13) (13) ABS 19 64 (1) 150 584 (6) (7) Total fixed income securities 611 $ 5,274 $ (91) 4,232 $ 23,017 $ (1,343) $ (1,434) Investment grade fixed income securities 568 $ 5,061 $ (83) 3,864 $ 20,429 $ (1,151) $ (1,234) Below investment grade fixed income securities 43 213 (8) 368 2,588 (192) (200) Total fixed income securities 611 $ 5,274 $ (91) 4,232 $ 23,017 $ (1,343) $ (1,434) (1) Includes fixed income securities with fair values of $3 million and $32 million and unrealized losses of zero and $3 million with credit loss allowances of $1 million and $8 million as of March 31, 2024 and December 31, 2023, respectively. Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2024 ($ in millions) Investment grade Below investment grade Total Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) $ (1,226) $ (150) $ (1,376) Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (2) (68) (24) (92) Total unrealized losses $ (1,294) $ (174) $ (1,468) (1) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses. (2) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. Investment grade is defined as a security having a National Association of Insurance Commissioners (“NAIC”) designation of 1 or 2, which is comparable to a rating of Aaa, Aa, A or Baa from Moody’s or AAA, AA, A or BBB from S&P Global Ratings (“S&P”), or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase. The unrealized losses are expected to reverse as the securities approach maturity. ABS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets. As of March 31, 2024, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis. Loans The Company establishes a credit loss allowance for mortgage loans and bank loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company. The Company uses a probability of default and loss given default model for mortgage loans and bank loans to estimate current expected credit losses that considers all relevant information available including past events, current conditions, and reasonable and supportable forecasts over the life of an asset. The Company also considers such factors as historical losses, expected prepayments and various economic factors. For mortgage loans, the Company considers origination vintage year and property level information such as debt service coverage, property type, property location and collateral value. For bank loans, the Company considers the credit rating of the borrower, credit spreads and type of loan. After the reasonable and supportable forecast period, the Company’s model reverts to historical loss trends. Loans are evaluated on a pooled basis when they share similar risk characteristics. The Company monitors loans through a quarterly credit monitoring process to determine when they no longer share similar risk characteristics and are to be evaluated individually when estimating credit losses. Loans are written off against their corresponding allowances when there is no reasonable expectation of recovery. If a loan recovers after a write-off, the estimate of expected credit losses includes the expected recovery. Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued income receivable is monitored for recoverability and when not expected to be collected is written off through net investment income. Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost. Accrued interest is excluded from the amortized cost of loans and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. Accrued interest ($ in millions) March 31, December 31, 2024 2023 Mortgage loans $ 3 $ 3 Bank Loans 3 3 Mortgage loans When it is determined a mortgage loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as using collateral value less estimated costs to sell where applicable, including when foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. When collateral value is used, the mortgage loans may not have a credit loss allowance when the fair value of the collateral exceeds the loan’s amortized cost. An alternative approach may be utilized to estimate credit losses using the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate. Individual loan credit loss allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell, when applicable, or present value of the loan’s expected future repayment cash flows. Debt service coverage ratio is considered a key credit quality indicator when mortgage loan credit loss allowances are estimated. Debt service coverage ratio represents the amount of estimated cash flow from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process. Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination March 31, 2024 December 31, 2023 ($ in millions) 2019 and prior 2020 2021 2022 2023 Current Total Total Below 1.0 $ — $ — $ — $ — $ — $ — $ — $ 13 1.0 - 1.25 39 — — 13 2 — 54 41 1.26 - 1.50 27 10 — 30 65 — 132 133 Above 1.50 279 42 183 60 76 — 640 646 Amortized cost before allowance $ 345 $ 52 $ 183 $ 103 $ 143 $ — $ 826 $ 833 Allowance (11) (11) Amortized cost, net $ 815 $ 822 Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees. Payments on all mortgage loans were current as of March 31, 2024 and December 31, 2023. Rollforward of credit loss allowance for mortgage loans Three months ended March 31, ($ in millions) 2024 2023 Beginning balance $ (11) $ (7) Net increases related to credit losses — — Write-offs — — Ending balance $ (11) $ (7) Bank loans When it is determined a bank loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate. Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss allowances are estimated. The ratings are either received from the Securities Valuation Office of the NAIC based on availability of applicable ratings from rating agencies on the NAIC credit rating provider list or a comparable internal rating. The year of origination is determined to be the year in which the asset is acquired. Bank loans amortized cost by credit rating and year of origination March 31, 2024 December 31, 2023 ($ in millions) 2019 and prior 2020 2021 2022 2023 Current Total Total NAIC 2 / BBB $ — $ 2 $ — $ — $ — $ 2 $ 4 $ 9 NAIC 3 / BB — — 4 — 9 7 20 38 NAIC 4 / B 24 1 17 6 71 15 134 153 NAIC 5-6 / CCC and below 8 — 5 — 5 1 19 46 Amortized cost before allowance $ 32 $ 3 $ 26 $ 6 $ 85 $ 25 $ 177 $ 246 Allowance (13) (22) Amortized cost, net $ 164 $ 224 Rollforward of credit loss allowance for bank loans ($ in millions) Three months ended March 31, 2024 2023 Beginning balance $ (22) $ (57) Net (increases) decreases related to credit losses 3 (3) Reduction of allowance related to sales — 5 Write-offs 6 3 Ending balance $ (13) $ (52) |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Note 5 Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows: Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access. Level 2: Assets and liabilities whose values are based on the following: (a) Quoted prices for similar assets or liabilities in active markets; (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities. The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions. The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy: (1) Specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs. (2) Quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources. Certain assets are not carried at fair value on a recurring basis, including mortgage loans, bank loans, real estate and policy loans and are only included in the fair value hierarchy disclosure when the individual investment is reported at fair value. In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used. Summary of significant inputs and valuation techniques for Level 2 and Level 3 assets and liabilities measured at fair value on a recurring basis Level 2 measurements • Fixed income securities: U.S. government and agencies, municipal, corporate - public and foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. Corporate - privately placed: Privately placed are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer. Corporate - privately placed also includes redeemable preferred stock that are valued using quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads. ABS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads. Certain ABS are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable. Residential mortgage-backed securities, included in ABS, use prepayment speeds as a primary input for valuation. • Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active. • Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. • Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active. Over-the-counter (“OTC”) derivatives, including interest rate swaps, foreign currency swaps, total return swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, implied volatilities, index price levels, currency rates, and credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment. Level 3 measurements • Fixed income securities: Municipal: Comprise municipal bonds that are not rated by third-party credit rating agencies. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets that are not market observable, contractual cash flows, benchmark yields and credit spreads. Also included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows. Corporate - public and privately placed and ABS: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs for corporate fixed income securities include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer. • Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets that are not market observable. • Short-term: For certain short-term investments, amortized cost is used as the best estimate of fair value. • Other investments: Certain options (including swaptions) are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements. • Other assets: Includes the contingent consideration provision in the sale agreement for Allstate Life Insurance Company (“ALIC”) which meets the definition of a derivative. This derivative is valued internally using a model that includes stochastically determined cash flows and inputs that include spot and forward interest rates, volatility, corporate credit spreads and a liquidity discount. This derivative is categorized as Level 3 due to the significance of non-market observable inputs. Assets measured at fair value on a non-recurring basis Comprise long-lived assets to be disposed of by sale, including real estate, that are written down to fair value less costs to sell and bank loans written down to fair value in connection with recognizing credit losses. Investments excluded from the fair value hierarchy Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy. These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner. The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10-12 years. As of March 31, 2024, the Company has commitments to invest $172 million in these limited partnership interests. Assets and liabilities measured at fair value March 31, 2024 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 10,016 $ 14 $ — $ 10,030 Municipal — 5,384 8 5,392 Corporate - public — 23,847 23 23,870 Corporate - privately placed — 8,345 54 8,399 Foreign government — 1,240 — 1,240 ABS — 1,788 58 1,846 Total fixed income securities 10,016 40,618 143 50,777 Equity securities (1) 1,607 218 408 2,233 Short-term investments 2,120 2,177 21 4,318 Other investments — 5 2 $ (4) 3 Other assets 1 — 120 121 Total recurring basis assets 13,744 43,018 694 (4) 57,452 Non-recurring basis — — — — Total assets at fair value $ 13,744 $ 43,018 $ 694 $ (4) $ 57,452 % of total assets at fair value 23.9 % 74.9 % 1.2 % — % 100.0 % Investments reported at NAV 1,146 Total $ 58,598 Liabilities Other liabilities $ (2) $ (4) $ — $ 3 $ (3) Total recurring basis liabilities (2) (4) — 3 (3) Total liabilities at fair value $ (2) $ (4) $ — $ 3 $ (3) % of total liabilities at fair value 66.7 % 133.3 % — % (100.0) % 100.0 % (1) Excludes $150 million of preferred stock measured at cost. Assets and liabilities measured at fair value December 31, 2023 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 8,606 $ 13 $ — $ 8,619 Municipal — 5,995 11 6,006 Corporate - public — 23,272 26 23,298 Corporate - privately placed — 7,849 58 7,907 Foreign government — 1,290 — 1,290 ABS — 1,687 58 1,745 Total fixed income securities 8,606 40,106 153 48,865 Equity securities (1) 1,656 203 402 2,261 Short-term investments 1,676 3,467 1 5,144 Other investments — 3 2 $ (2) 3 Other assets 3 — 118 121 Total recurring basis assets 11,941 43,779 676 (2) 56,394 Non-recurring basis — — 15 15 Total assets at fair value $ 11,941 $ 43,779 $ 691 $ (2) $ 56,409 % of total assets at fair value 21.2 % 77.6 % 1.2 % — % 100.0 % Investments reported at NAV 1,165 Total $ 57,574 Liabilities Other liabilities $ (2) $ (10) $ — $ 8 $ (4) Total recurring basis liabilities (2) (10) — 8 (4) Total liabilities at fair value $ (2) $ (10) $ — $ 8 $ (4) % of total liabilities at fair value 50.0 % 250.0 % — % (200.0) % 100.0 % (1) Excludes $150 million of preferred stock measured at cost. As of March 31, 2024 and December 31, 2023, Level 3 fair value measurements of fixed income securities total $143 million and $153 million, respectively, and include $23 million and $26 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $8 million and $11 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies. An increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value. Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2024 Balance as of Total gains (losses) Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 11 $ — $ — $ — $ — $ — $ (1) $ — $ (2) $ 8 Corporate - public 26 — 2 — — — (5) — — 23 Corporate - privately placed 58 (4) — — — — — — — 54 ABS 58 — — — — — — — — 58 Total fixed income securities 153 (4) 2 — — — (6) — (2) 143 Equity securities 402 9 — — — — (3) — — 408 Short-term investments 1 — — — — 20 — — — 21 Other investments 2 — — — — — — — — 2 Other assets 118 2 — — — — — — — 120 Total recurring Level 3 assets $ 676 $ 7 $ 2 $ — $ — $ 20 $ (9) $ — $ (2) $ 694 Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2023 Balance as of Total gains (losses) Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 21 $ — $ — $ — $ — $ — $ (3) $ — $ (1) $ 17 Corporate - public 69 (1) 2 — — — (41) — — 29 Corporate - privately placed 55 (4) — — — — (2) — — 49 ABS 28 — — — — — — — (1) 27 Total fixed income securities 173 (5) 2 — — — (46) — (2) 122 Equity securities 333 — — — — 42 (17) — — 358 Short-term investments 6 — — — — — — — — 6 Other investments 3 (1) — — — — — — — 2 Other assets 103 9 — — — — — — — 112 Total recurring Level 3 assets $ 618 $ 3 $ 2 $ — $ — $ 42 $ (63) $ — $ (2) $ 600 Total Level 3 gains (losses) included in net income Three months ended March 31, ($ in millions) 2024 2023 Net investment income $ — $ (5) Net gains (losses) on investments and derivatives (1) 5 (1) Operating costs and expenses (1) 2 9 (1) Prior to the first quarter of 2024, level 3 gains (losses) included in operating costs and expenses were reported in this table within net gains (losses) on investments and derivatives. Historical results have been updated to conform with this presentation. There were no transfers into or out of Level 3 during the three months ended March 31, 2024 and 2023. Valuation changes included in net income and OCI for Level 3 assets and liabilities held as of March 31, Three months ended March 31, ($ in millions) 2024 2023 Assets Fixed income securities: Corporate - privately placed $ (4) $ (4) Total fixed income securities (4) (4) Equity securities 9 (1) Other investments — (1) Other assets 2 9 Total recurring Level 3 assets $ 7 $ 3 Total included in net income $ 7 $ 3 Components of net income Net investment income $ — $ (5) Net gains (losses) on investments and derivatives 5 (1) Operating costs and expenses 2 9 Total included in net income $ 7 $ 3 Assets Corporate - public 2 1 Changes in unrealized net capital gains and losses reported in OCI $ 2 $ 1 Financial instruments not carried at fair value ($ in millions) March 31, 2024 December 31, 2023 Financial assets Fair value level Amortized cost, net Fair value Amortized cost, net Fair value Mortgage loans Level 3 $ 815 $ 762 $ 822 $ 769 Bank loans Level 3 164 177 224 238 Financial liabilities Fair value level Carrying value (1) Fair Carrying value (1) Fair value Contractholder funds on investment contracts Level 3 $ 44 $ 44 $ 46 $ 46 Debt Level 2 7,938 7,590 7,942 7,655 Liability for collateral Level 2 2,049 2,049 1,891 1,891 (1) Represents the amounts reported on the Condensed Consolidated Statements of Financial Position. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 6 Derivative Financial Instruments The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication. Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations. Asset replication refers to the “synthetic” creation of assets through the use of derivatives. The Company replicates fixed income securities using a combination of a credit default swap, index total return swap, options, futures, or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically replicate the economic characteristics of one or more cash market securities. The Company replicates equity securities using futures, index total return swaps, and options to increase equity exposure. Property-Liability may use interest rate swaps, swaptions, futures and options to manage the interest rate risks of existing investments. These instruments are utilized to change the duration of the portfolio in order to offset the economic effect that interest rates would otherwise have on the fair value of its fixed income securities. Fixed income index total return swaps are used to offset valuation losses in the fixed income portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Equity index total return swaps, futures and options are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values. In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts. Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations. When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges. The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries. Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position. For those derivatives which qualify and have been designated as fair value accounting hedges, net income includes the changes in the fair value of both the derivative instrument and the hedged risk. For cash flow hedges, gains and losses are amortized from AOCI and are reported in net income in the same period the forecasted transactions being hedged impact net income. Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis. In connection with the sale of ALIC and certain affiliates in 2021, the sale agreement included a provision related to contingent consideration that may be earned over a ten-year period with the first potential payment date commencing on January 1, 2026 and a final potential payment date of January 1, 2035. The contingent consideration is determined annually based on the average ten-year Treasury rate over the preceding three-year period compared to a designated rate. The contingent consideration meets the definition of a derivative and is accounted for on a fair value basis with periodic changes in fair value reflected in earnings. There are no collateral requirements related to the contingent consideration. Summary of the volume and fair value positions of derivative instruments as of March 31, 2024 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 4,644 $ 1 $ 1 $ — Equity and index contracts Options Other investments n/a 16 — — — Futures Other assets n/a 913 — — — Foreign currency contracts Foreign currency forwards Other investments $ 183 n/a 2 2 — Contingent consideration Other assets 250 n/a 120 120 — Credit default contracts Credit default swaps – buying protection Other investments 43 n/a (1) — (1) Total asset derivatives $ 476 5,573 $ 122 $ 123 $ (1) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 11,163 $ (2) $ — $ (2) Equity and index contracts Options Other liabilities & accrued expenses n/a 16 — — — Futures Other liabilities & accrued expenses n/a 736 — — — Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 384 n/a 1 3 (2) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 11 n/a (1) — (1) Total liability derivatives 395 11,915 (2) $ 3 $ (5) Total derivatives $ 871 17,488 $ 120 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) Summary of the volume and fair value positions of derivative instruments as of December 31, 2023 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 20,479 $ 2 $ 2 $ — Equity and index contracts Options Other investments n/a 32 — — — Futures Other assets n/a 1,305 1 1 — Foreign currency contracts Foreign currency forwards Other investments $ 278 n/a (2) 2 (4) Contingent consideration Other assets 250 n/a 118 118 — Credit default contracts Credit default swaps – buying protection Other investments 34 n/a (1) — (1) Total asset derivatives $ 562 21,816 $ 118 $ 123 $ (5) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 2,175 $ (1) $ — $ (1) Equity and index contracts Futures Other liabilities & accrued expenses n/a 980 (1) — (1) Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 306 n/a (3) 1 (4) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 19 n/a (1) — (1) Total liability derivatives 325 3,155 (6) $ 1 $ (7) Total derivatives $ 887 24,971 $ 112 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) Gross and net amounts for OTC derivatives (1) ($ in millions) Offsets Gross amount Counter-party netting Cash collateral (received) pledged Net amount on balance sheet Securities collateral (received) pledged Net amount March 31, 2024 Asset derivatives $ 5 $ (4) $ — $ 1 $ — $ 1 Liability derivatives (4) 4 (1) (1) — (1) December 31, 2023 Asset derivatives $ 3 $ (6) $ 4 $ 1 $ — $ 1 Liability derivatives (10) 6 2 (2) — (2) (1) All OTC derivatives are subject to enforceable master netting agreements. Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges ($ in millions) Net gains (losses) on investments and derivatives Operating costs and expenses Total gain (loss) recognized in net income on derivatives Three months ended March 31, 2024 Interest rate contracts $ (7) $ — $ (7) Equity and index contracts (11) 14 3 Contingent consideration — 2 2 Foreign currency contracts 11 — 11 Credit default contracts (1) — (1) Total $ (8) $ 16 $ 8 Three months ended March 31, 2023 Interest rate contracts $ (35) $ — $ (35) Equity and index contracts 4 8 12 Contingent consideration — 9 9 Foreign currency contracts (7) — (7) Credit default contracts (14) — (14) Total $ (52) $ 17 $ (35) The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. OTC cash and securities collateral pledged ($ in millions) March 31, 2024 Pledged by the Company $ 2 Pledged to the Company (1) 3 (1) $1 million collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk. Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements. OTC derivatives counterparty credit exposure by counterparty credit rating ($ in millions) March 31, 2024 December 31, 2023 Rating (1) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) A+ 2 $ 445 $ 2 $ — — $ — $ — $ — Total 2 $ 445 $ 2 $ — — $ — $ — $ — (1) Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings. (2) Only OTC derivatives with a net positive fair value are included for each counterparty. For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. Exchange traded and cleared margin deposits ($ in millions) March 31, 2024 Pledged by the Company $ 67 Received by the Company — Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions. Certain of the Company’s derivative transactions contain credit-risk-contingent termination events and cross-default provisions. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs. ($ in millions) March 31, 2024 December 31, 2023 Gross liability fair value of contracts containing credit-risk-contingent features $ 3 $ 10 Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs (2) (3) Collateral posted under MNAs for contracts containing credit-risk-contingent features (1) (5) Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ — $ 2 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Note 7 Variable Interest Entities Consolidated VIEs primarily include Adirondack Insurance Exchange (“Adirondack”), a New York reciprocal insurer, and New Jersey Skylands Insurance Association (“Skylands”), a New Jersey reciprocal insurer. The Reciprocal Exchanges are insurance carriers organized as unincorporated associations. The Company does not own the equity of the Reciprocal Exchanges, which is owned by their respective policyholders. The results of the Reciprocal Exchanges are included in the Allstate Protection segment as the Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance. The Company receives a management fee for the services provided to the Reciprocal Exchanges totaling $10 million and $11 million for the three months ended March 31, 2024 and 2023, respectively. In addition, as of March 31, 2024 and December 31, 2023, the Company holds interests of $123 million in the form of surplus notes that provide capital to the Reciprocal Exchanges and would absorb expected losses. As of March 31, 2024, Adirondack’s capital was below levels required by insurance regulations. Due to ongoing operating losses and the inability of the Reciprocal Exchanges to obtain approval for premium rate increases that are commensurate with increases in claims and claims expense, the Company established a valuation allowance of $123 million related to the surplus notes during the three months ended March 31, 2024. In addition, the Company has a 100% quota share reinsurance agreement with Skylands to cede all of Skylands’ business to the Company and a 36.5% quota share reinsurance agreement with Adirondack. Claims and claims expense ceded to the Company were $12 million and $7 million for the three months ended March 31, 2024 and 2023, respectively. The Reciprocal Exchanges generated $61 million of earned premiums for the three months ended March 31, 2024 compared to $57 million for the three months ended March 31, 2023. Total costs and expenses were $87 million for the three months ended March 31, 2024 compared to $59 million for the three months ended March 31, 2023. In the event of dissolution, policyholders would share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges. The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company. The table below reflects the consolidated VIE results, which exclude all intercompany transactions including surplus notes and related accrued interest, management fees and intercompany reinsurance transactions. Assets and liabilities of Reciprocal Exchanges included in the condensed consolidated statement of financial position (1) ($ in millions) March 31, 2024 December 31, 2023 Assets Fixed income securities $ 241 $ 267 Short-term investments 13 7 Deferred policy acquisition costs 19 25 Premium installment and other receivables, net 38 44 Reinsurance recoverables, net 74 76 Other assets 29 54 Total assets 414 473 Liabilities Reserve for property and casualty insurance claims and claims expense 227 201 Unearned premiums 160 177 Other liabilities and expenses 41 77 Total liabilities $ 428 $ 455 (1) Intercompany balances eliminated in consolidation Total assets $ (30) $ (26) Total liabilities (201) (189) |
Reserve for Property and Casual
Reserve for Property and Casualty Insurance Claims and Claims Expense | 3 Months Ended |
Mar. 31, 2024 | |
Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract] | |
Reserve for Property and Casualty Insurance Claims and Claims Expense | Note 8 Reserve for Property and Casualty Insurance Claims and Claims Expense The Company establishes reserves for claims and claims expense on reported and unreported claims of insured losses. The Company’s reserving process considers known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in laws and regulations, judicial decisions, and economic conditions. When the Company experiences changes in the mix or type of claims or changing claim settlement patterns or data, it applies actuarial judgment in the determination and selection of development factors to develop reserve liabilities. Supply chain disruptions and inflation have resulted in higher part costs, used car values and longer time to claim resolution, which have combined with labor shortages to increase physical damage loss costs. Medical inflation, treatment trends, attorney representation, litigation costs and more severe accidents have contributed to higher third-party bodily injury loss costs. The Company has also digitized and modified claim processes to increase effectiveness and efficiency. These factors may lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. Generally, the initial reserves for a new accident year are established based on claim frequency and severity assumptions for different business segments, lines and coverages based on historical relationships to relevant inflation indicators. Reserves for prior accident years are statistically determined using several different actuarial estimation methods. Changes in auto claim frequency may result from changes in mix of business, driving behaviors, miles driven or other factors. Changes in auto current year claim severity are generally influenced by inflation in the medical and auto repair sectors, the effectiveness and efficiency of claim settlements and changes in mix of claim types. When changes in claim data occur, actuarial judgment is used to determine appropriate development factors to establish reserves. The Company’s reserving process incorporates changes in loss patterns, operational statistics and changes in claims reporting processes to determine its best estimate of recorded reserves. As part of the reserving process, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, Run-off Property-Liability and reinsurance and indemnification recoverables, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the initial reporting period as it contains the greatest proportion of losses that have not been reported or settled as well as heightened uncertainty for claims that involve litigation or take longer to settle during periods of rapidly increasing loss costs. The Company also has uncertainty in the Run-off Property-Liability reserves that are based on events long since passed and are complicated by lack of historical data, legal interpretations, unresolved legal issues and legislative intent based on establishment of facts. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in reserve estimates, which may be material, are reported in property and casualty insurance claims and claims expense in the Condensed Consolidated Statements of Operations in the period such changes are determined. Management believes that the reserve for property and casualty insurance claims and claims expense, net of recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Condensed Consolidated Statements of Financial Position based on available facts, laws and regulations. Rollforward of the reserve for property and casualty insurance claims and claims expense Three months ended March 31, ($ in millions) 2024 2023 Balance as of January 1 $ 39,858 $ 37,541 Less: Recoverables (1) 8,396 9,176 Net balance as of January 1 31,462 28,365 Incurred claims and claims expense related to: Current year 9,652 10,341 Prior years (151) (15) Total incurred 9,501 10,326 Claims and claims expense paid related to: Current year (3,163) (3,122) Prior years (5,990) (6,036) Total paid (9,153) (9,158) Net balance as of March 31 31,810 29,533 Plus: Recoverables 8,333 9,111 Balance as of March 31 $ 40,143 $ 38,644 (1) Recoverables comprises reinsurance and indemnification recoverables. Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the period. This expense included losses from catastrophes of $731 million and $1.69 billion in the three months ended March 31, 2024 and 2023, respectively, net of recoverables. Catastrophes are an inherent risk of the property and casualty insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position. Prior year reserve reestimates included in claims and claims expense (1) Non-catastrophe losses Catastrophe losses Total ($ in millions) 2024 2023 2024 2023 2024 2023 Three months ended March 31, Auto $ (67) $ 3 $ (7) $ (28) $ (74) $ (25) Homeowners (40) (12) (149) (8) (189) (20) Other personal lines 55 10 (3) (7) 52 3 Commercial lines 54 23 (3) 1 51 24 Other business lines 5 1 — — 5 1 Run-off Property-Liability 4 2 — — 4 2 Total prior year reserve reestimates $ 11 $ 27 $ (162) $ (42) $ (151) $ (15) (1) Favorable reserve reestimates are shown in parentheses. |
Reserve for Future Policy Benef
Reserve for Future Policy Benefits and Contractholder Funds | 3 Months Ended |
Mar. 31, 2024 | |
Reserve for Future Policy Benefits and Contractholder Funds [Abstract] | |
Reserve for Future Policy Benefits and Contractholder Funds | Note 9 Reserve for Future Policy Benefits and Contractholder Funds Rollforward of reserve for future policy benefits (1) Three months ended March 31, Accident and Traditional Total ($ in millions) 2024 2023 2024 2023 2024 2023 Present value of expected net premiums Beginning balance $ 1,688 $ 1,464 $ 325 $ 238 $ 2,013 $ 1,702 Beginning balance at original discount rate 1,737 1,549 330 246 2,067 1,795 Effect of changes in cash flow assumptions — — — — — — Effect of actual variances from expected experience (44) (42) 11 5 (33) (37) Adjusted beginning balance 1,693 1,507 341 251 2,034 1,758 Issuances 230 199 32 17 262 216 Interest accrual 18 12 5 3 23 15 Net premiums collected (98) (95) (16) (12) (114) (107) Ending balance at original discount rate 1,843 1,623 362 259 2,205 1,882 Effect of changes in discount rate assumptions (81) (62) (9) (5) (90) (67) Ending balance 1,762 1,561 353 254 2,115 1,815 Present value of expected future policy benefits Beginning balance 2,453 2,229 657 524 3,110 2,753 Beginning balance at original discount rate 2,495 2,316 656 534 3,151 2,850 Effect of changes in cash flow assumptions (6) — — — (6) — Effect of actual variances from expected experience (47) (47) 8 4 (39) (43) Adjusted beginning balance 2,442 2,269 664 538 3,106 2,807 Issuances 230 199 33 16 263 215 Interest accrual 25 19 9 6 34 25 Benefit payments (102) (99) (12) (12) (114) (111) Ending balance at original discount rate 2,595 2,388 694 548 3,289 2,936 Effect of changes in discount rate assumptions (86) (53) (22) (1) (108) (54) Ending balance $ 2,509 $ 2,335 $ 672 $ 547 $ 3,181 $ 2,882 Net reserve for future policy benefits (1) $ 747 $ 774 $ 319 $ 293 $ 1,066 $ 1,067 Less: reinsurance recoverables 80 76 1 2 81 78 Net reserve for future policy benefits, after reinsurance recoverables $ 667 $ 698 $ 318 $ 291 $ 985 $ 989 (1) Excludes $259 million and $271 million of reserves related to short-duration and other contracts as of March 31, 2024 and 2023, respectively. Revenue and interest recognized in the condensed consolidated statements of operations ($ in millions) Three months ended March 31, 2024 2023 Revenues (1) Accident and health $ 221 $ 225 Traditional life 34 25 Total $ 255 $ 250 Interest expense (2) Accident and health $ 7 $ 7 Traditional life 4 3 Total $ 11 $ 10 (1) Total revenues reflects gross premiums used in the calculation for reserve for future policy benefits. Revenues included in Accident and health insurance premiums and contract charges on the Condensed Consolidated Statements of Operations reflect premium revenue recognized for traditional life insurance and long-duration and short-duration accident and health insurance contracts. (2) Total interest expense presented as part of Accident, health and other policy benefits on the Condensed Consolidated Statements of Operations. The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts. As of March 31, 2024 2023 ($ in millions) Undiscounted Discounted Undiscounted Discounted Accident and health Expected future gross premiums $ 5,580 $ 3,807 $ 5,068 $ 3,671 Expected future benefits and expenses 3,754 2,509 3,351 2,335 Traditional life Expected future gross premiums 1,002 687 721 500 Expected future benefits and expenses 1,399 672 1,008 547 Key assumptions used in calculating the reserve for future policy benefits As of March 31, Accident and health Traditional life 2024 2023 2024 2023 Weighted-average duration (in years) 4.3 4.1 15.1 14.1 Weighted-average interest rates Interest accretion rate (discount rate at contract issuance) 4.96 % 5.09 % 5.41 % 5.50 % Current discount rate (upper-medium grade fixed income yield) 5.02 4.58 5.35 5.03 Significant assumptions To determine mortality and morbidity assumptions, the Company uses a combination of its historical experience and industry data. Mortality and morbidity are monitored throughout the year. Historical experience is obtained through annual Company experience studies in the third quarter that consider its historical claim patterns. The lapse assumption is determined based on historical lapses of the Company’s insurance contracts. For the first quarter of 2024, actual experience for lapses in accident and health products was higher than expected. For the first quarter of 2023, actual experience for lapses in accident and health products was lower than expected. For the first quarter of 2024 and 2023, actual experience for lapses in traditional life products was lower than expected. Contractholder funds Contractholder funds activity Three months ended March 31, ($ in millions) 2024 2023 Beginning balance $ 888 $ 879 Deposits 34 33 Interest credited 9 8 Benefits (2) (4) Surrenders and partial withdrawals (6) (5) Contract charges (30) (30) Other adjustments (3) (3) Ending balance $ 890 $ 878 Components of contractholder funds Interest-sensitive life insurance $ 846 $ 830 Fixed annuities 44 48 Total $ 890 $ 878 Weighted-average crediting rate 4.20 % 4.27 % Net amount at risk (1) $ 11,364 $ 11,780 Cash surrender value 731 722 (1) Guaranteed benefit amounts in excess of the current account balances. Account values: comparison of current crediting rate to guaranteed minimum crediting rate (1) ($ in millions) Range of guaranteed minimum crediting rates At guaranteed minimum 1-50 basis points above Total March 31, 2024 Less than 3.00% $ — $ — $ — 3.00% - 3.49% — 34 34 3.50% - 3.99% 10 — 10 4.00% - 4.49% 437 — 437 4.50% - 4.99% 260 — 260 5.00% or greater 67 — 67 Non-account balances (2) 82 Total $ 774 $ 34 $ 890 March 31, 2023 Less than 3.00% $ — $ — $ — 3.00% - 3.49% — 20 20 3.50% - 3.99% 11 — 11 4.00% - 4.49% 431 — 431 4.50% - 4.99% 266 — 266 5.00% or greater 69 — 69 Non-account balances (2) 81 Total $ 777 $ 20 $ 878 (1) Difference, in basis points, between rates being credited to contractholders and the respective guaranteed minimum crediting rates. (2) Non-account balances include unearned revenue and amounts related to policies where a claim is either in the course of settlement or incurred but not reported. A claim on a life insurance policy results in the accrual of interest at a rate and over a period of time that is specified by state insurance regulations. |
Reinsurance and Indemnification
Reinsurance and Indemnification | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance and Indemnification | Note 10 Reinsurance and Indemnification Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges ($ in millions) Three months ended March 31, 2024 2023 Property and casualty insurance premiums earned $ (557) $ (446) Accident and health insurance premiums and contract charges (10) (9) Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident, health and other policy benefits ($ in millions) Three months ended March 31, 2024 2023 Property and casualty insurance claims and claims expense $ (232) $ (320) Accident, health and other policy benefits (6) (8) Reinsurance and indemnification recoverables Reinsurance and indemnification recoverables, net ($ in millions) March 31, 2024 December 31, 2023 Property and casualty Paid and due from reinsurers and indemnitors $ 234 $ 254 Unpaid losses estimated (including IBNR) 8,333 8,396 Total property and casualty $ 8,567 $ 8,650 Accident and health insurance 159 159 Total $ 8,726 $ 8,809 Rollforward of credit loss allowance for reinsurance recoverables ($ in millions) Three months ended March 31, 2024 2023 Property and casualty (1) (2) Beginning balance $ (62) $ (62) (Increase) decrease in the provision for credit losses (2) 1 Write-offs — — Ending balance $ (64) $ (61) Accident and health insurance Beginning balance $ (3) $ (3) Increase in the provision for credit losses — — Write-offs — — Ending balance $ (3) $ (3) (1) Primarily related to Run-off Property-Liability reinsurance ceded. (2) Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Policy Acquisition Costs | Note 11 Deferred Policy Acquisition Costs Deferred policy acquisition costs activity ($ in millions) Accident and health Traditional Interest-sensitive life Total Three months ended March 31, 2024 Accident and health insurance Long-duration contracts Beginning balance $ 321 $ 90 $ 100 $ 511 Acquisition costs deferred 26 13 4 43 Amortization charged to income (20) (5) (3) (28) Experience adjustment (10) (1) — (11) Total $ 317 $ 97 $ 101 515 Short-duration contracts 31 Property and casualty 5,400 Ending balance $ 5,946 Three months ended March 31, 2023 Accident and health insurance Long-duration contracts Beginning balance $ 322 $ 79 $ 101 $ 502 Acquisition costs deferred 13 6 4 23 Amortization charged to income (9) (3) (4) (16) Experience adjustment (9) — — (9) Total $ 317 $ 82 $ 101 500 Short-duration contracts 28 Property and casualty 4,943 Ending balance $ 5,471 |
Company Restructuring
Company Restructuring | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Company Restructuring | Note 12 Company Restructuring The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include the following costs related to these programs: • Employee - severance and relocation benefits • Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $10 million and $27 million during the three months ended March 31, 2024 and 2023, respectively. Restructuring expenses during the first quarter of 2024 primarily relate to implementing actions to streamline the organization and outsource operations, and real estate costs related to facilities being vacated. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future. Restructuring activity during the period ($ in millions) Employee costs Exit costs Total liability Restructuring liability as of December 31, 2023 $ 40 $ 1 $ 41 Expense incurred 4 5 9 Adjustments to liability 1 — 1 Payments and non-cash charges (12) (5) (17) Restructuring liability as of March 31, 2024 $ 33 $ 1 $ 34 As of March 31, 2024, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $105 million for employee costs and $79 million for exit costs. |
Guarantees and Contingent Liabi
Guarantees and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Guarantees and Contingent Liabilities | |
Guarantees and Contingent Liabilities | Note 13 Guarantees and Contingent Liabilities Shared markets and state facility assessments The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. The Company routinely reviews its exposure to assessments from these plans, facilities and government programs. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations in the last two years. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities or assessments from these facilities. Guarantees In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third-party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations. Related to the sale of ALNY on October 1, 2021, AIC agreed to indemnify Wilton Reassurance Company in connection with certain representations, warranties and covenants of AIC, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding AIC’s maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company. Related to the sale of ALIC and Allstate Assurance Company on November 1, 2021, AIC and Allstate Financial Insurance Holdings Corporation (collectively, the “Sellers”) agreed to indemnify Everlake US Holdings Company in connection with certain representations, warranties and covenants of the Sellers, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding the Sellers’ maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company. The aggregate liability balance related to all guarantees was not material as of March 31, 2024. Regulation and compliance The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, prescribe rules or guidelines on how affiliates compete in the marketplace, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agency and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the SEC, the Financial Industry Regulatory Authority, the U.S. Equal Employment Opportunity Commission, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain. Legal and regulatory proceedings and inquiries The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business. Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; changes in assigned judges; differences or developments in applicable laws and judicial interpretations; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; adjustments with respect to anticipated trial schedules and other proceedings; developments in similar actions against other companies; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the challenging legal environment faced by corporations and insurance companies. The outcome of these matters may be affected by decisions, verdicts, and settlements, and the timing of such decisions, verdicts, and settlements, in other individual and class action lawsuits that involve the Company, other insurers, or other entities and by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities. The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted. In the lawsuits, plaintiffs seek a variety of remedies which may include equitable relief in the form of injunctive and other remedies and monetary relief in the form of contractual and extra-contractual damages. In some cases, the monetary damages sought may include punitive or treble damages. Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings. When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court. In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company. In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding. Accrual and disclosure policy The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred. The Company continues to monitor its lawsuits, regulatory inquiries, and other legal proceedings for further developments that would make the loss contingency both probable and estimable, and accordingly accruable, or that could affect the amount of accruals that have been previously established. There may continue to be exposure to loss in excess of any amount accrued. Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual. When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued, if any, for the matters disclosed, that estimate is aggregated and disclosed. Disclosure is not required when an estimate of the reasonably possible loss or range of loss cannot be made. For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any. In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments. These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others. When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below. There may be other disclosed matters for which a loss is probable or reasonably possible, but such an estimate is not possible. Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate. The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $87 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies. Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted and in the Company’s judgment, a loss, in excess of amounts accrued, if any, is not probable. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company. Claims related proceedings The Company is managing various disputes in Florida that raise challenges to the Company’s practices, processes, and procedures relating to claims for personal injury protection benefits under Florida auto policies. Medical providers continue to pursue litigation under various theories that challenge the amounts that the Company pays under the personal injury protection coverage, seeking additional benefit payments, as well as applicable interest, penalties and fees. There is a pending lawsuit, Revival Chiropractic v. Allstate Insurance Company, et al. (M.D. Fla. filed January 2019; appeal pending, Eleventh Circuit Court of Appeals), where the federal district court denied class certification and plaintiff’s request to file a renewed motion for class certification. In Revival , on June 2, 2022, the Eleventh Circuit certified to the Florida Supreme Court Allstate’s appeal of the federal district court’s interpretation of the state personal injury protection statute. The Eleventh Circuit is holding determination on plaintiff’s class certification appeal pending the outcome of the Florida Supreme Court certification. The oral argument before the Florida Supreme Court was on March 8, 2023. On April 25, 2024, the Florida Supreme Court issued a decision in the Company’s favor, finding that the Company’s practice with respect to its payment of certain medical provider charges is consistent with the Company’s policy language and with the state personal injury protection statute. While this appeal has been pending, the Company has been managing litigation involving individual plaintiffs. The Company is defending putative class actions in various courts that raise challenges to the Company’s depreciation practices in homeowner property claims. In these lawsuits, plaintiffs generally allege that, when calculating actual cash value, the costs of “non-materials” such as labor, general contractor’s overhead and profit, and sales tax should not be subject to depreciation. The Company is currently defending the following lawsuits on this issue: Sims, et al. v. Allstate Fire and Casualty Insurance Company, et al. (W.D. Tex. filed June 2022); Thompson, et al. v. Allstate Insurance Company (Circuit Court of Cole Co., Mo. filed June 2022); Hill v. Allstate Vehicle and Property Insurance Compan y (Circuit Court of Cole Co., Mo. filed October 2022); and Hernandez v. Allstate Vehicle and Property Insurance Company (D. Ariz. filed April 2023) (the Shumway plaintiff was substituted with Hernandez). No classes have been certified in any of these matters. The Company is defending putative class actions pending in multiple states alleging that the Company underpays total loss vehicle physical damage claims on auto policies. The alleged systematic underpayments result from the following theories: (a) the third-party valuation tool used by the Company as part of a comprehensive adjustment process is allegedly flawed, biased, or contrary to applicable law; and/or (b) the Company allegedly does not pay sales tax, title fees, registration fees, and/or other specified fees that are allegedly mandatory under policy language or state legal authority. The Company is currently defending the following lawsuits: Kronenberg v. Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (E.D.N.Y. filed December 2018); Durgin v. Allstate Property and Casualty Insurance Company (W.D. La. filed June 2019); Golla v. Allstate Insurance Company (N.D. Ohio filed June 2023); Bibbs v. Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (N.D. Ohio filed August 2023); Hail v. Allstate Property and Casualty Insurance Company (State Court of Habersham Co., Ga. filed December 2023); Katz v. Esurance Property and Casualty Insurance Company and National General Insurance Company (E.D.N.Y. filed February 2024). No classes have been certified in any of these matters. Settlements in principle have been reached in the following cases: Bass v. Imperial Fire and Casualty Insurance Company (W.D. La. filed February 2022); and Cummings v. Allstate Property and Casualty Insurance Company (M.D. La. filed April 2022). The Company is defending putative class actions in Arizona federal court that are alleging underpayment of uninsured/underinsured motorist claims. The lawsuits are Dorazio v. Allstate Fire and Casualty Insurance Company (D. Ariz. filed December 2022) and Loughran v. MIC General Insurance Corporation (D. Ariz. filed December 2022). The plaintiffs allege that uninsured/underinsured motorist coverages must be stacked where the defendants allegedly did not include specified policy language and did not provide specified notice to policyholders. No classes have been certified in these matters. In July 2023, the Arizona Supreme Court issued a ruling in Franklin v. CSAA General Insurance , a matter involving another insurer. The Franklin decision held, under the factual circumstances of that case, that stacking of uninsured/underinsured motorist coverages was required because the insurer did not include specified policy language and did not issue specified notice. The Company is currently defending its insureds against plaintiffs’ bodily injury lawsuit stemming from a 2018 automobile accident, Equihua v. Chausse and Nash (Superior Court of Los Angeles Co., Cal. filed Jan. 2019). On August 18, 2021, a jury returned a verdict against the insureds. The Company then moved to intervene in the lawsuit on September 9, 2021 and together with the insureds, sought to vacate the judgment and to obtain a new trial. On November 2, 2021, the trial court denied the post-trial motions to vacate the judgment and for a new trial and the Company’s motion to intervene. The Company and the insureds subsequently filed an appeal with the California Court of Appeal, Second District, which affirmed judgment in favor of plaintiffs on November 6, 2023. On December 18, 2023, the insureds filed a petition for review with the California Supreme Court. On February 14, 2024, the California Supreme Court entered an order denying the petition for review. The Company satisfied the judgment on March 19, 2024. Other proceedings The Company has pending an investigatory hearing before the California Insurance Commissioner concerning the private passenger automobile insurance rating practices of Allstate Insurance Company and Allstate Indemnity Company in California. The investigatory hearing is captioned: In the Matter of the Rating Practices of Allstate Insurance Company and Allstate Indemnity Company . Pursuant to the Notice of Hearing issued by the California Insurance Commissioner, the California Insurance Commissioner is investigating: (1) whether Allstate has potentially violated California insurance law by using illegal price optimization; (2) how Allstate implemented any such potentially illegal price optimization in its private passenger auto insurance rates and/or class plans; and (3) how such potentially illegal price optimization impacted Allstate’s private passenger auto insurance policyholders. Fact discovery was completed in the investigatory hearing. Allstate and the California Department of Insurance have reached an agreement in principle to resolve the investigatory hearing. The May 22, 2023 hearing was continued. A new hearing date has not been set. In re The Allstate Corp. Securities Litigation was a certified class action filed on November 11, 2016, in the United States District Court for the Northern District of Illinois against the Company and two of its officers asserting claims under the federal securities laws. Plaintiffs alleged that they purchased Allstate common stock during the class period and suffered damages as the result of the conduct alleged. Plaintiffs sought an unspecified amount of damages, costs, attorney’s fees, and other relief. Plaintiffs alleged that the Company and certain senior officers made allegedly material misstatements or omissions concerning claim frequency statistics and the reasons for a claim frequency increase for Allstate brand auto insurance between October 2014 and August 3, 2015. Plaintiffs further alleged that a senior officer engaged in stock option exercises during that time allegedly while in possession of material nonpublic information about Allstate brand auto insurance claim frequency. The Company, its chairman, president and chief executive officer, and its former president were the named defendants. After the court denied their motion to dismiss on February 27, 2018, defendants answered the complaint, denying plaintiffs’ allegations that there was any misstatement or omission or other misconduct. On June 22, 2018, plaintiffs filed their motion for class certification. On September 12, 2018, the lead plaintiffs amended the complaint to add the City of Providence Employee Retirement System as a proposed class representative. A class was certified on March 26, 2019, vacated by the U.S. Court of Appeals for the Seventh Circuit on July 16, 2020 and remanded for further consideration by the district court. On December 21, 2020, the district court again granted plaintiffs’ motion for class certification and certified a class consisting of all persons who purchased Allstate common stock between October 29, 2014 and August 3, 2015. Defendants’ petition for permission to appeal this ruling was denied on January 28, 2021. Following the close of discovery, defendants moved for summary judgment on March 23, 2022. On July 26, 2022, the court entered its order granting summary judgment in part (as to plaintiffs’ claims relating to certain statements made in October 2014) and denying it as to the remainder of plaintiffs’ claims. On June 28, 2023, the parties reached an agreement in principle to settle the action, without any admission of liability or wrongdoing. The district court granted preliminary approval of the class settlement on September 26, 2023, and granted final approval of the class settlement on December 19, 2023. The settlement became final after the expiration of the time for filing an appeal of the district court’s approval order. No appeal of the district court’s approval order was filed, and the settlement is now final. The Company is continuing to defend two putative class actions in California federal court, Holland Hewitt v. Allstate Life Insurance Company (E.D. Cal. filed May 2020) and Farley v. Lincoln Benefit Life Company (E.D. Cal. filed Dec. 2020), following the sale of ALIC. On April 19, 2023, the district court certified a class in Farley. LBL is appealing the district court’s order in the Ninth Circuit Court of Appeals. On March 27, 2024, the Magistrate Judge issued his Findings and Recommendations denying class certification in Hewitt. Plaintiffs filed their objection to the Magistrate’s recommendation. In these cases, plaintiffs generally allege that the defendants failed to comply with certain California statutes which address contractual grace periods and lapse notice requirements for certain life insurance policies. Plaintiffs claim that these statutes apply to life insurance policies that existed before the statutes’ effective date. The plaintiffs seek damages and injunctive relief. Similar litigation is pending against other insurance carriers. In August 2021, the California Supreme Court in McHugh v. Protective Life , a matter involving another insurer, determined that the statutory notice requirements apply to life insurance policies issued before the statutes’ effective date. The Company asserts various defenses to plaintiffs’ claims and to class certification. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 14 Benefit Plans Components of net cost (benefit) for pension and other postretirement plans Three months ended March 31, ($ in millions) 2024 2023 Pension benefits Service cost $ 33 $ 33 Interest cost 58 60 Expected return on plan assets (77) (77) Amortization of prior service credit — — Costs and expenses 14 16 Remeasurement of projected benefit obligation (25) 123 Remeasurement of plan assets 25 (180) Remeasurement (gains) losses — (57) Pension net cost (benefit) $ 14 $ (41) Postretirement benefits Service cost $ — $ — Interest cost 2 3 Amortization of prior service credit — (6) Costs and expenses 2 (3) Remeasurement of projected benefit obligation (2) 4 Remeasurement of plan assets — — Remeasurement (gains) losses (2) 4 Postretirement net cost $ — $ 1 Pension and postretirement benefits Costs and expenses $ 16 $ 13 Remeasurement (gains) losses (2) (53) Total net cost (benefit) $ 14 $ (40) Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses. Differences between expected and actual returns on plan assets affect remeasurement (gains) losses. Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations. Pension and postretirement benefits remeasurement gains and losses Three months ended March 31, ($ in millions) 2024 2023 Remeasurement of projected benefit obligation (gains) losses: Discount rate $ (41) $ 124 Other assumptions 14 3 Remeasurement of plan assets (gains) losses 25 (180) Remeasurement (gains) losses $ (2) $ (53) Remeasurement gains for the first quarter of 2024 are primarily related to an increase in the liability discount rate, partially offset by unfavorable asset performance compared to expected return on plan assets. The weighted average discount rate used to measure the pension benefit obligation increased to 5.45% at March 31, 2024 compared to 5.35% at December 31, 2023, resulting in gains for the first quarter of 2024. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 15 Supplemental Cash Flow Information Non-cash investing activities include $34 million and $36 million related to mergers and exchanges completed with equity securities, fixed income securities, bank loans, and limited partnerships for the three months ended March 31, 2024 and 2023, respectively. Non-cash investing activities include $18 million related to right-of-use property and equipment obtained in exchange for lease obligations for the three months ended March 31, 2024. Non-cash investing activities include $17 million related to right-of-use real estate obtained in exchange for lease obligations and $51 million related to debt assumed by purchaser on sale of real estate for the three months ended March 31, 2023. Non-cash financing activities include $26 million and $35 million related to the issuance of Allstate common shares for vested equity awards for the three months ended March 31, 2024 and 2023, respectively. Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $30 million and $33 million for the three months ended March 31, 2024 and 2023, respectively. Non-cash operating activities include $10 million and $4 million related to right-of-use assets obtained in exchange for lease obligations for the three months ended March 31, 2024 and 2023, respectively. Liabilities for collateral received in conjunction with the Company’s securities lending program and OTC and cleared derivatives are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows: ($ in millions) Three months ended March 31, 2024 2023 Cash flows from operating activities Net change in proceeds managed Net change in fixed income securities $ (31) $ 111 Net change in short-term investments (127) 93 Operating cash flow (used) provided $ (158) $ 204 Net change in liabilities Liabilities for collateral, beginning of period $ (1,891) $ (2,011) Liabilities for collateral, end of period (2,049) (1,807) Operating cash flow provided (used) $ 158 $ (204) |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income (Loss) | Note 16 Other Comprehensive Income (Loss) Components of other comprehensive income (loss) on a pre-tax and after-tax basis ($ in millions) Three months ended March 31, 2024 2023 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ (375) $ 80 $ (295) $ 729 $ (156) $ 573 Less: reclassification adjustment of realized capital gains and losses (101) 21 (80) (138) 29 (109) Unrealized net capital gains and losses (274) 59 (215) 867 (185) 682 Unrealized foreign currency translation adjustments 10 (2) 8 63 (13) 50 Unamortized pension and other postretirement prior service credit (1) (1) — (1) (6) 2 (4) Discount rate for reserve for future policy benefits 32 (7) 25 (11) 2 (9) Other comprehensive (loss) income $ (233) $ 50 $ (183) $ 913 $ (194) $ 719 (1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 1,218 | $ (320) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Suren Gupta [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Suren Gupta, President, Protection Products and Enterprise Services of Allstate Insurance Company, adopted a Rule 10b5-1 trading plan. The Rule 10b5-1 plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. Mr. Gupta’s Rule 10b5-1 plan provides for the sale of up to 45,775 shares of the Company’s common stock. The Rule 10b5-1 plan expires on February 18, 2025, or upon the earlier completion of all authorized transactions thereunder. |
Name | Suren Gupta |
Title | President, Protection Products and Enterprise Services of Allstate Insurance Company |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 340 days |
Aggregate Available | 45,775 |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
General [Abstract] | |
Basis of presentation | Basis of presentation The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company (collectively referred to as the “Company” or “Allstate”) and variable interest entities (“VIEs”) in which the Company is considered a primary beneficiary. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of March 31, 2024 and for the three month periods ended March 31, 2024 and 2023 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. Certain amounts have been reclassified to conform to current year presentation. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated. |
Pending accounting standard | Pending accounting standard Accounting for joint ventures In August 2023, the Financial Accounting Standards Board (“FASB”) issued guidance requiring a joint venture to initially measure assets contributed and liabilities assumed at fair value as of the formation date. The new guidance will be applied prospectively for joint ventures with a formation date on or after January 1, 2025. The impact of the adoption is not expected to be material to the Company’s results of operations or financial position. Segment reporting In November 2023, the FASB issued guidance expanding segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of reportable segments’ profit or loss and assets. The guidance is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024 and is to be applied retrospectively, with early adoption permitted. The Company is currently evaluating the impact of adopting the guidance to its disclosures. Income tax disclosures In December 2023, the FASB issued guidance enhancing various aspects of income tax disclosures. The guidance requires a tabular reconciliation between statutory and effective income tax expense (benefit) with both amounts and percentages for a list of required categories. For certain required categories where an individual category is at least five percent of the statutory tax amount, the required category must be further broken out by nature and, for foreign tax effects, jurisdiction. Additionally, entities must disclose income taxes paid, net of refunds received, broken out between federal, state and foreign, and amounts paid, net of refunds received, to an individual jurisdiction when five percent or more of the total income taxes paid, net of refunds received. All requirements in the guidance are annual in nature, and the guidance is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The guidance only affects disclosures and will have no impact on the Company’s consolidated financial statements. The Company is currently evaluating the impact of adopting the guidance to its disclosures. Climate disclosures In March 2024, the Securities and Exchange Commission (“SEC”) adopted a final rule requiring registrants to disclose certain climate-related information in their registration statements and annual reports. The rule requires the disclosure of qualitative and quantitative information, with certain information, such as financial statement effects of severe weather events, included in the notes to the audited financial statements. Other disclosure requirements include material climate-related risks, processes to manage and govern those risks, disclosure of targets if the targets materially affect or are reasonably likely to materially affect the Company, and, if material, disclosure of certain greenhouse gas emissions. On April 4, 2024, the SEC issued a voluntary stay of the final rule, pending the outcome of pending litigation. |
Earnings per common share | Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options, unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | Computation of basic and diluted earnings per common share (In millions, except per share data) Three months ended March 31, 2024 2023 Numerator: Net income (loss) $ 1,198 $ (321) Less: Net loss attributable to noncontrolling interest (20) (1) Net income (loss) attributable to Allstate 1,218 (320) Less: Preferred stock dividends 29 26 Net income (loss) applicable to common shareholders $ 1,189 $ (346) Denominator: Weighted average common shares outstanding 263.5 263.5 Effect of dilutive potential common shares (1) : Stock options 2.5 — Restricted stock units (non-participating) and performance stock awards 0.5 — Weighted average common and dilutive potential common shares outstanding 266.5 263.5 Earnings per common share - Basic $ 4.51 $ (1.31) Earnings per common share - Diluted (1) $ 4.46 $ (1.31) Anti-dilutive options excluded from diluted earnings per common share 0.7 1.1 Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) — 2.6 (1) As a result of the net loss reported for the three month period ended March 31, 2023, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments Financial Performance | A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below. Reportable segments financial performance Three months ended March 31, ($ in millions) 2024 2023 Underwriting income (loss) by segment Allstate Protection $ 903 $ (998) Run-off Property-Liability (5) (3) Total Property-Liability 898 (1,001) Adjusted net income (loss) by segment, after-tax Protection Services 54 34 Allstate Health and Benefits 56 56 Corporate and Other (106) (89) Reconciling items Allstate Protection and Run-off Property-Liability net investment income 702 509 Net gains (losses) on investments and derivatives (164) 14 Pension and other postretirement remeasurement gains (losses) 2 53 Amortization of purchased intangibles (1) (18) (24) Gain (loss) on disposition 4 9 Income tax (expense) benefit on reconciling items (2) (259) 92 Total reconciling items 267 653 Less: Net loss attributable to noncontrolling interest (3) (20) (1) Net income (loss) applicable to common shareholders $ 1,189 $ (346) (1) Excludes amortization of purchased intangibles in Property-Liability, which is included above in underwriting income. (2) The tax computation of the reporting segments and income tax benefit (expense) on reconciling items to net income (loss) are computed discretely based on the tax law of the jurisdictions applicable to the reporting entities. (3) Reflects net loss attributable to noncontrolling interest in Property-Liability. |
Schedule of Reportable Segments Revenue Information | Reportable segments revenue information ($ in millions) Three months ended March 31, 2024 2023 Property-Liability Insurance premiums Auto $ 8,778 $ 7,908 Homeowners 3,154 2,810 Other personal lines 659 562 Commercial lines 169 232 Other business lines 140 123 Allstate Protection 12,900 11,635 Run-off Property-Liability — — Total Property-Liability insurance premiums 12,900 11,635 Other revenue 430 353 Net investment income 702 509 Net gains (losses) on investments and derivatives (162) 12 Total Property-Liability 13,870 12,509 Protection Services Protection plans 439 361 Roadside assistance 47 49 Protection and insurance products 126 128 Intersegment premiums and service fees (1) 35 33 Other revenue 85 84 Net investment income 21 16 Net gains (losses) on investments and derivatives (5) (1) Total Protection Services 748 670 Allstate Health and Benefits Employer voluntary benefits 248 255 Group health 118 107 Individual health 112 101 Other revenue 134 101 Net investment income 23 19 Net gains (losses) on investments and derivatives 2 2 Total Allstate Health and Benefits 637 585 Corporate and Other Other revenue 20 23 Net investment income 18 31 Net gains (losses) on investments and derivatives 1 1 Total Corporate and Other 39 55 Intersegment eliminations (1) (35) (33) Consolidated revenues $ 15,259 $ 13,786 (1) Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the condensed consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Schedule of Portfolio Composition | Portfolio composition ($ in millions) March 31, 2024 December 31, 2023 Fixed income securities, at fair value $ 50,777 $ 48,865 Equity securities, at fair value 2,383 2,411 Mortgage loans, net 815 822 Limited partnership interests 8,562 8,380 Short-term investments, at fair value 4,318 5,144 Other investments, net 1,004 1,055 Total $ 67,859 $ 66,677 |
Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value for Fixed Income Securities | Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses March 31, 2024 U.S. government and agencies $ 10,142 $ 56 $ (168) $ 10,030 Municipal 5,491 61 (160) 5,392 Corporate 33,110 273 (1,114) 32,269 Foreign government 1,255 4 (19) 1,240 ABS 1,839 14 (7) 1,846 Total fixed income securities $ 51,837 $ 408 $ (1,468) $ 50,777 December 31, 2023 U.S. government and agencies $ 8,624 $ 114 $ (119) $ 8,619 Municipal 6,049 109 (152) 6,006 Corporate 31,951 397 (1,143) 31,205 Foreign government 1,286 17 (13) 1,290 ABS 1,739 13 (7) 1,745 Total fixed income securities $ 49,649 $ 650 $ (1,434) $ 48,865 |
Schedule of Maturities for Fixed Income Securities | Scheduled maturities for fixed income securities ($ in millions) March 31, 2024 December 31, 2023 Amortized cost, net Fair value Amortized cost, net Fair value Due in one year or less $ 3,374 $ 3,333 $ 3,422 $ 3,374 Due after one year through five years 23,324 22,678 23,218 22,614 Due after five years through ten years 14,894 14,560 12,553 12,273 Due after ten years 8,406 8,360 8,717 8,859 49,998 48,931 47,910 47,120 ABS 1,839 1,846 1,739 1,745 Total $ 51,837 $ 50,777 $ 49,649 $ 48,865 |
Schedule of Net Investment Income | Net investment income ($ in millions) Three months ended March 31, 2024 2023 Fixed income securities $ 526 $ 390 Equity securities 15 11 Mortgage loans 9 8 Limited partnership interests 199 134 Short-term investments 67 66 Other investments 21 41 Investment income, before expense 837 650 Investment expense (73) (75) Net investment income $ 764 $ 575 |
Schedule of Net Gains (Losses) on Investments and Derivatives by Asset Type | Net gains (losses) on investments and derivatives by asset type ($ in millions) Three months ended March 31, 2024 2023 Fixed income securities $ (101) $ (136) Equity securities 62 167 Limited partnership interests 8 22 Derivatives (8) (52) Other investments (2) 13 Other (1) (123) — Net gains (losses) on investments and derivatives $ (164) $ 14 (1) Related to the valuation allowance established for the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”). See Note 7 for further detail. |
Schedule of Net Gains (Losses) on Investments and Derivatives by Transaction Type | Net gains (losses) on investments and derivatives by transaction type ($ in millions) Three months ended March 31, 2024 2023 Sales $ (111) $ (120) Credit losses (115) (12) Valuation change of equity investments (1) 70 198 Valuation change and settlements of derivatives (8) (52) Net gains (losses) on investments and derivatives $ (164) $ 14 (1) Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities. |
Schedule of Gross Realized Gains (Losses) on Sales of Fixed Income Securities | Gross realized gains (losses) on sales of fixed income securities ($ in millions) Three months ended March 31, 2024 2023 Gross realized gains $ 41 $ 46 Gross realized losses (146) (173) |
Schedule of Net Appreciation (Decline) Recognized in Net Income | Net appreciation (decline) recognized in net income for assets that are still held ($ in millions) Three months ended March 31, 2024 2023 Equity securities $ 61 $ 20 Limited partnership interests carried at fair value 30 16 Total $ 91 $ 36 |
Schedule of Credit Losses Recognized in Net Income | Credit losses recognized in net income ($ in millions) Three months ended March 31, 2024 2023 Assets Fixed income securities: Corporate $ 4 $ (9) Total fixed income securities 4 (9) Other investments Bank loans 3 (3) Other (123) — Total credit losses by asset type $ (116) $ (12) Liabilities Commitments to fund commercial mortgage loans and bank loans 1 — Total $ (115) $ (12) |
Schedule of Unrealized Net Capital Gains and Losses Included in AOCI | Unrealized net capital gains and losses included in Accumulated Other Comprehensive Income (“AOCI”) ($ in millions) Fair value Gross unrealized Unrealized net gains (losses) March 31, 2024 Gains Losses Fixed income securities $ 50,777 $ 408 $ (1,468) $ (1,060) Short-term investments 4,318 — (2) (2) Derivative instruments — — (2) (2) Limited partnership interests — Unrealized net capital gains and losses, pre-tax (1,064) Reclassification of noncontrolling interest 12 Deferred income taxes 233 Unrealized net capital gains and losses, after-tax $ (819) December 31, 2023 Fixed income securities $ 48,865 $ 650 $ (1,434) $ (784) Short-term investments 5,144 — (1) (1) Derivative instruments — — (2) (2) Limited partnership interests (1) (4) Unrealized net capital gains and losses, pre-tax (791) Reclassification of noncontrolling interest 13 Deferred income taxes 174 Unrealized net capital gains and losses, after-tax $ (604) (1) Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of the equity method of accounting (“EMA”) limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable. |
Schedule of Change in Unrealized Net Capital Gains (Losses) | Change in unrealized net capital gains (losses) ($ in millions) Three months ended March 31, 2024 Fixed income securities $ (276) Short-term investments (1) Derivative instruments — Limited partnership interests 4 Total (273) Reclassification of noncontrolling interest (1) Deferred income taxes 59 Change in unrealized net capital gains and losses, after-tax $ (215) |
Schedule of Carrying Value for Limited Partnership Interests | Carrying value for limited partnership interests ($ in millions) March 31, 2024 December 31, 2023 EMA Fair Value Total EMA Fair Value Total Private equity $ 6,144 $ 1,122 $ 7,266 $ 6,015 $ 1,139 $ 7,154 Real estate 1,114 24 1,138 1,059 26 1,085 Other (1) 158 — 158 141 — 141 Total $ 7,416 $ 1,146 $ 8,562 $ 7,215 $ 1,165 $ 8,380 (1) Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities. |
Schedule of Other investments by Asset Type | Other investments by asset type ($ in millions) March 31, 2024 December 31, 2023 Bank loans, net $ 164 $ 224 Real estate 717 709 Policy loans 120 119 Derivatives 1 1 Other 2 2 Total $ 1,004 $ 1,055 |
Schedule of Rollforward of Credit Loss Allowance for Fixed Income Securities, Mortgage Loans and Bank Loans | Rollforward of credit loss allowance for fixed income securities Three months ended March 31, ($ in millions) 2024 2023 Beginning balance $ (36) $ (13) Credit losses on securities for which credit losses not previously reported (3) — Net (increases) decreases related to credit losses previously reported 4 (9) (Increase) decrease of allowance related to sales and other 3 — Write-offs 15 — Ending balance $ (17) $ (22) Components of credit loss allowance as of March 31 Corporate bonds $ (16) $ (20) ABS (1) (2) Total $ (17) $ (22) Rollforward of credit loss allowance for mortgage loans Three months ended March 31, ($ in millions) 2024 2023 Beginning balance $ (11) $ (7) Net increases related to credit losses — — Write-offs — — Ending balance $ (11) $ (7) Rollforward of credit loss allowance for bank loans ($ in millions) Three months ended March 31, 2024 2023 Beginning balance $ (22) $ (57) Net (increases) decreases related to credit losses 3 (3) Reduction of allowance related to sales — 5 Write-offs 6 3 Ending balance $ (13) $ (52) |
Schedule of Gross Unrealized Losses and Fair Value by Type and Length of Time Held in a Continuous Unrealized Loss Position | Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1) ($ in millions) Less than 12 months 12 months or more Total unrealized losses Number of issues Fair value Unrealized losses Number of issues Fair value Unrealized losses March 31, 2024 Fixed income securities U.S. government and agencies 118 $ 3,867 $ (85) 104 $ 2,196 $ (83) $ (168) Municipal 397 915 (9) 1,600 2,106 (151) (160) Corporate 493 5,317 (84) 1,962 15,133 (1,030) (1,114) Foreign government 40 453 (3) 74 327 (16) (19) ABS 48 214 (2) 118 141 (5) (7) Total fixed income securities 1,096 $ 10,766 $ (183) 3,858 $ 19,903 $ (1,285) $ (1,468) Investment grade fixed income securities 1,032 $ 10,551 $ (173) 3,518 $ 17,647 $ (1,121) $ (1,294) Below investment grade fixed income securities 64 215 (10) 340 2,256 (164) (174) Total fixed income securities 1,096 $ 10,766 $ (183) 3,858 $ 19,903 $ (1,285) $ (1,468) December 31, 2023 Fixed income securities U.S. government and agencies 63 $ 2,554 $ (38) 117 $ 2,513 $ (81) $ (119) Municipal 271 400 (4) 1,784 2,245 (148) (152) Corporate 251 2,225 (48) 2,106 17,319 (1,095) (1,143) Foreign government 7 31 — 75 356 (13) (13) ABS 19 64 (1) 150 584 (6) (7) Total fixed income securities 611 $ 5,274 $ (91) 4,232 $ 23,017 $ (1,343) $ (1,434) Investment grade fixed income securities 568 $ 5,061 $ (83) 3,864 $ 20,429 $ (1,151) $ (1,234) Below investment grade fixed income securities 43 213 (8) 368 2,588 (192) (200) Total fixed income securities 611 $ 5,274 $ (91) 4,232 $ 23,017 $ (1,343) $ (1,434) (1) Includes fixed income securities with fair values of $3 million and $32 million and unrealized losses of zero and $3 million with credit loss allowances of $1 million and $8 million as of March 31, 2024 and December 31, 2023, respectively. |
Schedule of Gross Unrealized Losses by Unrealized Loss Position and Credit Quality | Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2024 ($ in millions) Investment grade Below investment grade Total Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) $ (1,226) $ (150) $ (1,376) Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (2) (68) (24) (92) Total unrealized losses $ (1,294) $ (174) $ (1,468) (1) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses. (2) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. |
Schedule of Accrued Interest | Accrued interest ($ in millions) March 31, December 31, 2024 2023 Mortgage loans $ 3 $ 3 Bank Loans 3 3 |
Schedule of Mortgage Loans Amortized Cost by Debt Service Coverage Ratio Distribution and Year of Origination | Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination March 31, 2024 December 31, 2023 ($ in millions) 2019 and prior 2020 2021 2022 2023 Current Total Total Below 1.0 $ — $ — $ — $ — $ — $ — $ — $ 13 1.0 - 1.25 39 — — 13 2 — 54 41 1.26 - 1.50 27 10 — 30 65 — 132 133 Above 1.50 279 42 183 60 76 — 640 646 Amortized cost before allowance $ 345 $ 52 $ 183 $ 103 $ 143 $ — $ 826 $ 833 Allowance (11) (11) Amortized cost, net $ 815 $ 822 |
Schedule of Bank Loans Amortized Cost by Credit Rating and Year of Origination | Bank loans amortized cost by credit rating and year of origination March 31, 2024 December 31, 2023 ($ in millions) 2019 and prior 2020 2021 2022 2023 Current Total Total NAIC 2 / BBB $ — $ 2 $ — $ — $ — $ 2 $ 4 $ 9 NAIC 3 / BB — — 4 — 9 7 20 38 NAIC 4 / B 24 1 17 6 71 15 134 153 NAIC 5-6 / CCC and below 8 — 5 — 5 1 19 46 Amortized cost before allowance $ 32 $ 3 $ 26 $ 6 $ 85 $ 25 $ 177 $ 246 Allowance (13) (22) Amortized cost, net $ 164 $ 224 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value March 31, 2024 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 10,016 $ 14 $ — $ 10,030 Municipal — 5,384 8 5,392 Corporate - public — 23,847 23 23,870 Corporate - privately placed — 8,345 54 8,399 Foreign government — 1,240 — 1,240 ABS — 1,788 58 1,846 Total fixed income securities 10,016 40,618 143 50,777 Equity securities (1) 1,607 218 408 2,233 Short-term investments 2,120 2,177 21 4,318 Other investments — 5 2 $ (4) 3 Other assets 1 — 120 121 Total recurring basis assets 13,744 43,018 694 (4) 57,452 Non-recurring basis — — — — Total assets at fair value $ 13,744 $ 43,018 $ 694 $ (4) $ 57,452 % of total assets at fair value 23.9 % 74.9 % 1.2 % — % 100.0 % Investments reported at NAV 1,146 Total $ 58,598 Liabilities Other liabilities $ (2) $ (4) $ — $ 3 $ (3) Total recurring basis liabilities (2) (4) — 3 (3) Total liabilities at fair value $ (2) $ (4) $ — $ 3 $ (3) % of total liabilities at fair value 66.7 % 133.3 % — % (100.0) % 100.0 % (1) Excludes $150 million of preferred stock measured at cost. Assets and liabilities measured at fair value December 31, 2023 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 8,606 $ 13 $ — $ 8,619 Municipal — 5,995 11 6,006 Corporate - public — 23,272 26 23,298 Corporate - privately placed — 7,849 58 7,907 Foreign government — 1,290 — 1,290 ABS — 1,687 58 1,745 Total fixed income securities 8,606 40,106 153 48,865 Equity securities (1) 1,656 203 402 2,261 Short-term investments 1,676 3,467 1 5,144 Other investments — 3 2 $ (2) 3 Other assets 3 — 118 121 Total recurring basis assets 11,941 43,779 676 (2) 56,394 Non-recurring basis — — 15 15 Total assets at fair value $ 11,941 $ 43,779 $ 691 $ (2) $ 56,409 % of total assets at fair value 21.2 % 77.6 % 1.2 % — % 100.0 % Investments reported at NAV 1,165 Total $ 57,574 Liabilities Other liabilities $ (2) $ (10) $ — $ 8 $ (4) Total recurring basis liabilities (2) (10) — 8 (4) Total liabilities at fair value $ (2) $ (10) $ — $ 8 $ (4) % of total liabilities at fair value 50.0 % 250.0 % — % (200.0) % 100.0 % (1) Excludes $150 million of preferred stock measured at cost. |
Schedule of Rollforward of Level 3 Assets and Liabilities Held at Fair Value | Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2024 Balance as of Total gains (losses) Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 11 $ — $ — $ — $ — $ — $ (1) $ — $ (2) $ 8 Corporate - public 26 — 2 — — — (5) — — 23 Corporate - privately placed 58 (4) — — — — — — — 54 ABS 58 — — — — — — — — 58 Total fixed income securities 153 (4) 2 — — — (6) — (2) 143 Equity securities 402 9 — — — — (3) — — 408 Short-term investments 1 — — — — 20 — — — 21 Other investments 2 — — — — — — — — 2 Other assets 118 2 — — — — — — — 120 Total recurring Level 3 assets $ 676 $ 7 $ 2 $ — $ — $ 20 $ (9) $ — $ (2) $ 694 Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2023 Balance as of Total gains (losses) Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 21 $ — $ — $ — $ — $ — $ (3) $ — $ (1) $ 17 Corporate - public 69 (1) 2 — — — (41) — — 29 Corporate - privately placed 55 (4) — — — — (2) — — 49 ABS 28 — — — — — — — (1) 27 Total fixed income securities 173 (5) 2 — — — (46) — (2) 122 Equity securities 333 — — — — 42 (17) — — 358 Short-term investments 6 — — — — — — — — 6 Other investments 3 (1) — — — — — — — 2 Other assets 103 9 — — — — — — — 112 Total recurring Level 3 assets $ 618 $ 3 $ 2 $ — $ — $ 42 $ (63) $ — $ (2) $ 600 Total Level 3 gains (losses) included in net income Three months ended March 31, ($ in millions) 2024 2023 Net investment income $ — $ (5) Net gains (losses) on investments and derivatives (1) 5 (1) Operating costs and expenses (1) 2 9 (1) Prior to the first quarter of 2024, level 3 gains (losses) included in operating costs and expenses were reported in this table within net gains (losses) on investments and derivatives. Historical results have been updated to conform with this presentation. |
Schedule of Valuation Changes Included in Net Income and OCI for Level 3 Assets and Liabilities | Valuation changes included in net income and OCI for Level 3 assets and liabilities held as of March 31, Three months ended March 31, ($ in millions) 2024 2023 Assets Fixed income securities: Corporate - privately placed $ (4) $ (4) Total fixed income securities (4) (4) Equity securities 9 (1) Other investments — (1) Other assets 2 9 Total recurring Level 3 assets $ 7 $ 3 Total included in net income $ 7 $ 3 Components of net income Net investment income $ — $ (5) Net gains (losses) on investments and derivatives 5 (1) Operating costs and expenses 2 9 Total included in net income $ 7 $ 3 Assets Corporate - public 2 1 Changes in unrealized net capital gains and losses reported in OCI $ 2 $ 1 |
Schedule of Financial Instruments Not Carried at Fair Value | Financial instruments not carried at fair value ($ in millions) March 31, 2024 December 31, 2023 Financial assets Fair value level Amortized cost, net Fair value Amortized cost, net Fair value Mortgage loans Level 3 $ 815 $ 762 $ 822 $ 769 Bank loans Level 3 164 177 224 238 Financial liabilities Fair value level Carrying value (1) Fair Carrying value (1) Fair value Contractholder funds on investment contracts Level 3 $ 44 $ 44 $ 46 $ 46 Debt Level 2 7,938 7,590 7,942 7,655 Liability for collateral Level 2 2,049 2,049 1,891 1,891 (1) Represents the amounts reported on the Condensed Consolidated Statements of Financial Position. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Volume and Fair Value Positions of Derivative Instruments | Summary of the volume and fair value positions of derivative instruments as of March 31, 2024 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 4,644 $ 1 $ 1 $ — Equity and index contracts Options Other investments n/a 16 — — — Futures Other assets n/a 913 — — — Foreign currency contracts Foreign currency forwards Other investments $ 183 n/a 2 2 — Contingent consideration Other assets 250 n/a 120 120 — Credit default contracts Credit default swaps – buying protection Other investments 43 n/a (1) — (1) Total asset derivatives $ 476 5,573 $ 122 $ 123 $ (1) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 11,163 $ (2) $ — $ (2) Equity and index contracts Options Other liabilities & accrued expenses n/a 16 — — — Futures Other liabilities & accrued expenses n/a 736 — — — Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 384 n/a 1 3 (2) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 11 n/a (1) — (1) Total liability derivatives 395 11,915 (2) $ 3 $ (5) Total derivatives $ 871 17,488 $ 120 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) Summary of the volume and fair value positions of derivative instruments as of December 31, 2023 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 20,479 $ 2 $ 2 $ — Equity and index contracts Options Other investments n/a 32 — — — Futures Other assets n/a 1,305 1 1 — Foreign currency contracts Foreign currency forwards Other investments $ 278 n/a (2) 2 (4) Contingent consideration Other assets 250 n/a 118 118 — Credit default contracts Credit default swaps – buying protection Other investments 34 n/a (1) — (1) Total asset derivatives $ 562 21,816 $ 118 $ 123 $ (5) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 2,175 $ (1) $ — $ (1) Equity and index contracts Futures Other liabilities & accrued expenses n/a 980 (1) — (1) Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 306 n/a (3) 1 (4) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 19 n/a (1) — (1) Total liability derivatives 325 3,155 (6) $ 1 $ (7) Total derivatives $ 887 24,971 $ 112 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) |
Schedule of Gross and Net Amounts for OTC Derivatives | Gross and net amounts for OTC derivatives (1) ($ in millions) Offsets Gross amount Counter-party netting Cash collateral (received) pledged Net amount on balance sheet Securities collateral (received) pledged Net amount March 31, 2024 Asset derivatives $ 5 $ (4) $ — $ 1 $ — $ 1 Liability derivatives (4) 4 (1) (1) — (1) December 31, 2023 Asset derivatives $ 3 $ (6) $ 4 $ 1 $ — $ 1 Liability derivatives (10) 6 2 (2) — (2) (1) All OTC derivatives are subject to enforceable master netting agreements. |
Schedule of Gains (Losses) from Valuation and Settlements Reported on Derivatives Not Designated as Accounting Hedges | Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges ($ in millions) Net gains (losses) on investments and derivatives Operating costs and expenses Total gain (loss) recognized in net income on derivatives Three months ended March 31, 2024 Interest rate contracts $ (7) $ — $ (7) Equity and index contracts (11) 14 3 Contingent consideration — 2 2 Foreign currency contracts 11 — 11 Credit default contracts (1) — (1) Total $ (8) $ 16 $ 8 Three months ended March 31, 2023 Interest rate contracts $ (35) $ — $ (35) Equity and index contracts 4 8 12 Contingent consideration — 9 9 Foreign currency contracts (7) — (7) Credit default contracts (14) — (14) Total $ (52) $ 17 $ (35) |
Schedule of OTC Cash and Securities Collateral Pledged | OTC cash and securities collateral pledged ($ in millions) March 31, 2024 Pledged by the Company $ 2 Pledged to the Company (1) 3 (1) $1 million collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision. |
Schedule of OTC Derivatives Counterparty Credit Exposure by Counterparty Credit Rating | OTC derivatives counterparty credit exposure by counterparty credit rating ($ in millions) March 31, 2024 December 31, 2023 Rating (1) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) A+ 2 $ 445 $ 2 $ — — $ — $ — $ — Total 2 $ 445 $ 2 $ — — $ — $ — $ — (1) Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings. (2) Only OTC derivatives with a net positive fair value are included for each counterparty. |
Schedule of Exchange Traded and Cleared Margin Deposits | Exchange traded and cleared margin deposits ($ in millions) March 31, 2024 Pledged by the Company $ 67 Received by the Company — |
Schedule of Fair Value of Instruments with Credit-Risk-Contingent Features | The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs. ($ in millions) March 31, 2024 December 31, 2023 Gross liability fair value of contracts containing credit-risk-contingent features $ 3 $ 10 Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs (2) (3) Collateral posted under MNAs for contracts containing credit-risk-contingent features (1) (5) Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ — $ 2 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Assets and Liabilities of Reciprocal Exchanges | Assets and liabilities of Reciprocal Exchanges included in the condensed consolidated statement of financial position (1) ($ in millions) March 31, 2024 December 31, 2023 Assets Fixed income securities $ 241 $ 267 Short-term investments 13 7 Deferred policy acquisition costs 19 25 Premium installment and other receivables, net 38 44 Reinsurance recoverables, net 74 76 Other assets 29 54 Total assets 414 473 Liabilities Reserve for property and casualty insurance claims and claims expense 227 201 Unearned premiums 160 177 Other liabilities and expenses 41 77 Total liabilities $ 428 $ 455 (1) Intercompany balances eliminated in consolidation Total assets $ (30) $ (26) Total liabilities (201) (189) |
Reserve for Property and Casu_2
Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract] | |
Schedule of Rollforward of the Reserve for Property and Casualty Insurance Claims and Claims Expense and Prior Year Reserve Re-Estimates Included in Claims and Claims Expense | Rollforward of the reserve for property and casualty insurance claims and claims expense Three months ended March 31, ($ in millions) 2024 2023 Balance as of January 1 $ 39,858 $ 37,541 Less: Recoverables (1) 8,396 9,176 Net balance as of January 1 31,462 28,365 Incurred claims and claims expense related to: Current year 9,652 10,341 Prior years (151) (15) Total incurred 9,501 10,326 Claims and claims expense paid related to: Current year (3,163) (3,122) Prior years (5,990) (6,036) Total paid (9,153) (9,158) Net balance as of March 31 31,810 29,533 Plus: Recoverables 8,333 9,111 Balance as of March 31 $ 40,143 $ 38,644 (1) Recoverables comprises reinsurance and indemnification recoverables. Prior year reserve reestimates included in claims and claims expense (1) Non-catastrophe losses Catastrophe losses Total ($ in millions) 2024 2023 2024 2023 2024 2023 Three months ended March 31, Auto $ (67) $ 3 $ (7) $ (28) $ (74) $ (25) Homeowners (40) (12) (149) (8) (189) (20) Other personal lines 55 10 (3) (7) 52 3 Commercial lines 54 23 (3) 1 51 24 Other business lines 5 1 — — 5 1 Run-off Property-Liability 4 2 — — 4 2 Total prior year reserve reestimates $ 11 $ 27 $ (162) $ (42) $ (151) $ (15) (1) Favorable reserve reestimates are shown in parentheses. |
Reserve for Future Policy Ben_2
Reserve for Future Policy Benefits and Contractholder Funds (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reserve for Future Policy Benefits and Contractholder Funds [Abstract] | |
Schedule of Reserve for Future Policy Benefits, and Revenue and Interest Recognized and Key Assumptions | Rollforward of reserve for future policy benefits (1) Three months ended March 31, Accident and Traditional Total ($ in millions) 2024 2023 2024 2023 2024 2023 Present value of expected net premiums Beginning balance $ 1,688 $ 1,464 $ 325 $ 238 $ 2,013 $ 1,702 Beginning balance at original discount rate 1,737 1,549 330 246 2,067 1,795 Effect of changes in cash flow assumptions — — — — — — Effect of actual variances from expected experience (44) (42) 11 5 (33) (37) Adjusted beginning balance 1,693 1,507 341 251 2,034 1,758 Issuances 230 199 32 17 262 216 Interest accrual 18 12 5 3 23 15 Net premiums collected (98) (95) (16) (12) (114) (107) Ending balance at original discount rate 1,843 1,623 362 259 2,205 1,882 Effect of changes in discount rate assumptions (81) (62) (9) (5) (90) (67) Ending balance 1,762 1,561 353 254 2,115 1,815 Present value of expected future policy benefits Beginning balance 2,453 2,229 657 524 3,110 2,753 Beginning balance at original discount rate 2,495 2,316 656 534 3,151 2,850 Effect of changes in cash flow assumptions (6) — — — (6) — Effect of actual variances from expected experience (47) (47) 8 4 (39) (43) Adjusted beginning balance 2,442 2,269 664 538 3,106 2,807 Issuances 230 199 33 16 263 215 Interest accrual 25 19 9 6 34 25 Benefit payments (102) (99) (12) (12) (114) (111) Ending balance at original discount rate 2,595 2,388 694 548 3,289 2,936 Effect of changes in discount rate assumptions (86) (53) (22) (1) (108) (54) Ending balance $ 2,509 $ 2,335 $ 672 $ 547 $ 3,181 $ 2,882 Net reserve for future policy benefits (1) $ 747 $ 774 $ 319 $ 293 $ 1,066 $ 1,067 Less: reinsurance recoverables 80 76 1 2 81 78 Net reserve for future policy benefits, after reinsurance recoverables $ 667 $ 698 $ 318 $ 291 $ 985 $ 989 (1) Excludes $259 million and $271 million of reserves related to short-duration and other contracts as of March 31, 2024 and 2023, respectively. Revenue and interest recognized in the condensed consolidated statements of operations ($ in millions) Three months ended March 31, 2024 2023 Revenues (1) Accident and health $ 221 $ 225 Traditional life 34 25 Total $ 255 $ 250 Interest expense (2) Accident and health $ 7 $ 7 Traditional life 4 3 Total $ 11 $ 10 (1) Total revenues reflects gross premiums used in the calculation for reserve for future policy benefits. Revenues included in Accident and health insurance premiums and contract charges on the Condensed Consolidated Statements of Operations reflect premium revenue recognized for traditional life insurance and long-duration and short-duration accident and health insurance contracts. (2) Total interest expense presented as part of Accident, health and other policy benefits on the Condensed Consolidated Statements of Operations. The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts. As of March 31, 2024 2023 ($ in millions) Undiscounted Discounted Undiscounted Discounted Accident and health Expected future gross premiums $ 5,580 $ 3,807 $ 5,068 $ 3,671 Expected future benefits and expenses 3,754 2,509 3,351 2,335 Traditional life Expected future gross premiums 1,002 687 721 500 Expected future benefits and expenses 1,399 672 1,008 547 Key assumptions used in calculating the reserve for future policy benefits As of March 31, Accident and health Traditional life 2024 2023 2024 2023 Weighted-average duration (in years) 4.3 4.1 15.1 14.1 Weighted-average interest rates Interest accretion rate (discount rate at contract issuance) 4.96 % 5.09 % 5.41 % 5.50 % Current discount rate (upper-medium grade fixed income yield) 5.02 4.58 5.35 5.03 |
Schedule of Contractholder Funds Activity | Contractholder funds activity Three months ended March 31, ($ in millions) 2024 2023 Beginning balance $ 888 $ 879 Deposits 34 33 Interest credited 9 8 Benefits (2) (4) Surrenders and partial withdrawals (6) (5) Contract charges (30) (30) Other adjustments (3) (3) Ending balance $ 890 $ 878 Components of contractholder funds Interest-sensitive life insurance $ 846 $ 830 Fixed annuities 44 48 Total $ 890 $ 878 Weighted-average crediting rate 4.20 % 4.27 % Net amount at risk (1) $ 11,364 $ 11,780 Cash surrender value 731 722 (1) Guaranteed benefit amounts in excess of the current account balances. |
Schedule of Account Values by Comparison of Current Crediting Rate to Guaranteed Minimum Crediting Rate | Account values: comparison of current crediting rate to guaranteed minimum crediting rate (1) ($ in millions) Range of guaranteed minimum crediting rates At guaranteed minimum 1-50 basis points above Total March 31, 2024 Less than 3.00% $ — $ — $ — 3.00% - 3.49% — 34 34 3.50% - 3.99% 10 — 10 4.00% - 4.49% 437 — 437 4.50% - 4.99% 260 — 260 5.00% or greater 67 — 67 Non-account balances (2) 82 Total $ 774 $ 34 $ 890 March 31, 2023 Less than 3.00% $ — $ — $ — 3.00% - 3.49% — 20 20 3.50% - 3.99% 11 — 11 4.00% - 4.49% 431 — 431 4.50% - 4.99% 266 — 266 5.00% or greater 69 — 69 Non-account balances (2) 81 Total $ 777 $ 20 $ 878 (1) Difference, in basis points, between rates being credited to contractholders and the respective guaranteed minimum crediting rates. (2) Non-account balances include unearned revenue and amounts related to policies where a claim is either in the course of settlement or incurred but not reported. A claim on a life insurance policy results in the accrual of interest at a rate and over a period of time that is specified by state insurance regulations. |
Reinsurance and Indemnificati_2
Reinsurance and Indemnification (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Effects of Reinsurance | Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges ($ in millions) Three months ended March 31, 2024 2023 Property and casualty insurance premiums earned $ (557) $ (446) Accident and health insurance premiums and contract charges (10) (9) Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident, health and other policy benefits ($ in millions) Three months ended March 31, 2024 2023 Property and casualty insurance claims and claims expense $ (232) $ (320) Accident, health and other policy benefits (6) (8) |
Schedule of Reinsurance and Indemnification Recoverables | Reinsurance and indemnification recoverables Reinsurance and indemnification recoverables, net ($ in millions) March 31, 2024 December 31, 2023 Property and casualty Paid and due from reinsurers and indemnitors $ 234 $ 254 Unpaid losses estimated (including IBNR) 8,333 8,396 Total property and casualty $ 8,567 $ 8,650 Accident and health insurance 159 159 Total $ 8,726 $ 8,809 |
Schedule of Rollforward of Credit Loss Allowance for Reinsurance Recoverables | Rollforward of credit loss allowance for reinsurance recoverables ($ in millions) Three months ended March 31, 2024 2023 Property and casualty (1) (2) Beginning balance $ (62) $ (62) (Increase) decrease in the provision for credit losses (2) 1 Write-offs — — Ending balance $ (64) $ (61) Accident and health insurance Beginning balance $ (3) $ (3) Increase in the provision for credit losses — — Write-offs — — Ending balance $ (3) $ (3) (1) Primarily related to Run-off Property-Liability reinsurance ceded. (2) Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Policy Acquisition Costs Activity | Deferred policy acquisition costs activity ($ in millions) Accident and health Traditional Interest-sensitive life Total Three months ended March 31, 2024 Accident and health insurance Long-duration contracts Beginning balance $ 321 $ 90 $ 100 $ 511 Acquisition costs deferred 26 13 4 43 Amortization charged to income (20) (5) (3) (28) Experience adjustment (10) (1) — (11) Total $ 317 $ 97 $ 101 515 Short-duration contracts 31 Property and casualty 5,400 Ending balance $ 5,946 Three months ended March 31, 2023 Accident and health insurance Long-duration contracts Beginning balance $ 322 $ 79 $ 101 $ 502 Acquisition costs deferred 13 6 4 23 Amortization charged to income (9) (3) (4) (16) Experience adjustment (9) — — (9) Total $ 317 $ 82 $ 101 500 Short-duration contracts 28 Property and casualty 4,943 Ending balance $ 5,471 |
Company Restructuring (Tables)
Company Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activity | Restructuring activity during the period ($ in millions) Employee costs Exit costs Total liability Restructuring liability as of December 31, 2023 $ 40 $ 1 $ 41 Expense incurred 4 5 9 Adjustments to liability 1 — 1 Payments and non-cash charges (12) (5) (17) Restructuring liability as of March 31, 2024 $ 33 $ 1 $ 34 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Cost (Benefit) for Pension and Other Postretirement Plans | Components of net cost (benefit) for pension and other postretirement plans Three months ended March 31, ($ in millions) 2024 2023 Pension benefits Service cost $ 33 $ 33 Interest cost 58 60 Expected return on plan assets (77) (77) Amortization of prior service credit — — Costs and expenses 14 16 Remeasurement of projected benefit obligation (25) 123 Remeasurement of plan assets 25 (180) Remeasurement (gains) losses — (57) Pension net cost (benefit) $ 14 $ (41) Postretirement benefits Service cost $ — $ — Interest cost 2 3 Amortization of prior service credit — (6) Costs and expenses 2 (3) Remeasurement of projected benefit obligation (2) 4 Remeasurement of plan assets — — Remeasurement (gains) losses (2) 4 Postretirement net cost $ — $ 1 Pension and postretirement benefits Costs and expenses $ 16 $ 13 Remeasurement (gains) losses (2) (53) Total net cost (benefit) $ 14 $ (40) |
Schedule of Pension and Postretirement Benefits Remeasurement Gains and Losses | Pension and postretirement benefits remeasurement gains and losses Three months ended March 31, ($ in millions) 2024 2023 Remeasurement of projected benefit obligation (gains) losses: Discount rate $ (41) $ 124 Other assumptions 14 3 Remeasurement of plan assets (gains) losses 25 (180) Remeasurement (gains) losses $ (2) $ (53) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Activities Resulting from Management of Proceeds | The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows: ($ in millions) Three months ended March 31, 2024 2023 Cash flows from operating activities Net change in proceeds managed Net change in fixed income securities $ (31) $ 111 Net change in short-term investments (127) 93 Operating cash flow (used) provided $ (158) $ 204 Net change in liabilities Liabilities for collateral, beginning of period $ (1,891) $ (2,011) Liabilities for collateral, end of period (2,049) (1,807) Operating cash flow provided (used) $ 158 $ (204) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Components of Other Comprehensive Income (Loss) on a Pre-Tax and After-Tax Basis | Components of other comprehensive income (loss) on a pre-tax and after-tax basis ($ in millions) Three months ended March 31, 2024 2023 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ (375) $ 80 $ (295) $ 729 $ (156) $ 573 Less: reclassification adjustment of realized capital gains and losses (101) 21 (80) (138) 29 (109) Unrealized net capital gains and losses (274) 59 (215) 867 (185) 682 Unrealized foreign currency translation adjustments 10 (2) 8 63 (13) 50 Unamortized pension and other postretirement prior service credit (1) (1) — (1) (6) 2 (4) Discount rate for reserve for future policy benefits 32 (7) 25 (11) 2 (9) Other comprehensive (loss) income $ (233) $ 50 $ (183) $ 913 $ (194) $ 719 (1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses. |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income (loss) | $ 1,198 | $ (321) |
Less: Net loss attributable to noncontrolling interest | (20) | (1) |
Net income (loss) attributable to Allstate | 1,218 | (320) |
Less: Preferred stock dividends | 29 | 26 |
Net income (loss) applicable to common shareholders, basic | 1,189 | (346) |
Net income (loss) applicable to common shareholders, diluted | $ 1,189 | $ (346) |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 263.5 | 263.5 |
Effect of dilutive potential common shares | ||
Stock options (in shares) | 2.5 | 0 |
Restricted stock units (non-participating) and performance stock awards (in shares) | 0.5 | 0 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 266.5 | 263.5 |
Earnings per common share: | ||
Earnings per common share - Basic (in dollars per share) | $ 4.51 | $ (1.31) |
Earnings per common share - Diluted (in dollars per share) | $ 4.46 | $ (1.31) |
Anti-dilutive options excluded from diluted earnings per common share (in shares) | 0.7 | 1.1 |
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (in shares) | 0 | 2.6 |
Reportable Segments - Schedule
Reportable Segments - Schedule of Reportable Segments Financial Performance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information | ||
Allstate Protection and Run-off Property-Liability net investment income | $ 764 | $ 575 |
Net gains (losses) on investments and derivatives | (164) | 14 |
Pension and other postretirement remeasurement gains (losses) | 2 | 53 |
Amortization of purchased intangibles | (69) | (81) |
Less: Net loss attributable to noncontrolling interest | (20) | (1) |
Net income (loss) applicable to common shareholders, basic | 1,189 | (346) |
Net income (loss) applicable to common shareholders, diluted | 1,189 | (346) |
Segment Reconciling Items | ||
Segment Reporting Information | ||
Adjusted net income (loss) by segment, after-tax | 267 | 653 |
Net gains (losses) on investments and derivatives | (164) | 14 |
Pension and other postretirement remeasurement gains (losses) | 2 | 53 |
Amortization of purchased intangibles | (18) | (24) |
Gain (loss) on disposition | 4 | 9 |
Income tax (expense) benefit on reconciling items | (259) | 92 |
Property-Liability | ||
Segment Reporting Information | ||
Less: Net loss attributable to noncontrolling interest | (20) | (1) |
Property-Liability | Operating Segments | ||
Segment Reporting Information | ||
Underwriting income (loss) by segment | 898 | (1,001) |
Allstate Protection and Run-off Property-Liability net investment income | 702 | 509 |
Net gains (losses) on investments and derivatives | (162) | 12 |
Property-Liability | Operating Segments | Allstate Protection | ||
Segment Reporting Information | ||
Underwriting income (loss) by segment | 903 | (998) |
Property-Liability | Operating Segments | Run-off Property-Liability | ||
Segment Reporting Information | ||
Underwriting income (loss) by segment | (5) | (3) |
Property-Liability | Segment Reconciling Items | ||
Segment Reporting Information | ||
Allstate Protection and Run-off Property-Liability net investment income | 702 | 509 |
Protection Services | Operating Segments | ||
Segment Reporting Information | ||
Adjusted net income (loss) by segment, after-tax | 54 | 34 |
Allstate Protection and Run-off Property-Liability net investment income | 21 | 16 |
Net gains (losses) on investments and derivatives | (5) | (1) |
Allstate Health and Benefits | Operating Segments | ||
Segment Reporting Information | ||
Adjusted net income (loss) by segment, after-tax | 56 | 56 |
Allstate Protection and Run-off Property-Liability net investment income | 23 | 19 |
Net gains (losses) on investments and derivatives | 2 | 2 |
Corporate and Other | Operating Segments | ||
Segment Reporting Information | ||
Adjusted net income (loss) by segment, after-tax | (106) | (89) |
Allstate Protection and Run-off Property-Liability net investment income | 18 | 31 |
Net gains (losses) on investments and derivatives | $ 1 | $ 1 |
Reportable Segments - Schedul_2
Reportable Segments - Schedule of Reportable Segments Revenue Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information | ||
Net investment income | $ 764 | $ 575 |
Net gains (losses) on investments and derivatives | (164) | 14 |
Consolidated revenues | 15,259 | 13,786 |
Intersegment Eliminations | ||
Segment Reporting Information | ||
Consolidated revenues | (35) | (33) |
Property-Liability | Operating Segments | ||
Segment Reporting Information | ||
Insurance premiums | 12,900 | 11,635 |
Other revenue | 430 | 353 |
Net investment income | 702 | 509 |
Net gains (losses) on investments and derivatives | (162) | 12 |
Consolidated revenues | 13,870 | 12,509 |
Property-Liability | Operating Segments | Allstate Protection | ||
Segment Reporting Information | ||
Insurance premiums | 12,900 | 11,635 |
Property-Liability | Operating Segments | Run-off Property-Liability | ||
Segment Reporting Information | ||
Insurance premiums | 0 | 0 |
Property-Liability | Operating Segments | Auto | Allstate Protection | ||
Segment Reporting Information | ||
Insurance premiums | 8,778 | 7,908 |
Property-Liability | Operating Segments | Homeowners | Allstate Protection | ||
Segment Reporting Information | ||
Insurance premiums | 3,154 | 2,810 |
Property-Liability | Operating Segments | Other personal lines | Allstate Protection | ||
Segment Reporting Information | ||
Insurance premiums | 659 | 562 |
Property-Liability | Operating Segments | Commercial lines | Allstate Protection | ||
Segment Reporting Information | ||
Insurance premiums | 169 | 232 |
Property-Liability | Operating Segments | Other business lines | Allstate Protection | ||
Segment Reporting Information | ||
Insurance premiums | 140 | 123 |
Protection Services | Operating Segments | ||
Segment Reporting Information | ||
Other revenue | 85 | 84 |
Net investment income | 21 | 16 |
Net gains (losses) on investments and derivatives | (5) | (1) |
Intersegment premiums and service fees | 35 | 33 |
Consolidated revenues | 748 | 670 |
Protection Services | Operating Segments | Protection plans | ||
Segment Reporting Information | ||
Other revenue | 439 | 361 |
Protection Services | Operating Segments | Roadside assistance | ||
Segment Reporting Information | ||
Other revenue | 47 | 49 |
Protection Services | Operating Segments | Protection and insurance products | ||
Segment Reporting Information | ||
Other revenue | 126 | 128 |
Allstate Health and Benefits | Operating Segments | ||
Segment Reporting Information | ||
Other revenue | 134 | 101 |
Net investment income | 23 | 19 |
Net gains (losses) on investments and derivatives | 2 | 2 |
Consolidated revenues | 637 | 585 |
Allstate Health and Benefits | Operating Segments | Employer voluntary benefits | ||
Segment Reporting Information | ||
Other revenue | 248 | 255 |
Allstate Health and Benefits | Operating Segments | Group health | ||
Segment Reporting Information | ||
Other revenue | 118 | 107 |
Allstate Health and Benefits | Operating Segments | Individual health | ||
Segment Reporting Information | ||
Other revenue | 112 | 101 |
Corporate and Other | Operating Segments | ||
Segment Reporting Information | ||
Other revenue | 20 | 23 |
Net investment income | 18 | 31 |
Net gains (losses) on investments and derivatives | 1 | 1 |
Consolidated revenues | $ 39 | $ 55 |
Investments - Schedule of Portf
Investments - Schedule of Portfolio Composition (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments [Abstract] | ||
Fixed income securities, at fair value | $ 50,777 | $ 48,865 |
Equity securities, at fair value | 2,383 | 2,411 |
Mortgage loans, net | 815 | 822 |
Limited partnership interests | 8,562 | 8,380 |
Short-term investments, at fair value | 4,318 | 5,144 |
Other investments, net | 1,004 | 1,055 |
Total investments | $ 67,859 | $ 66,677 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value for Fixed Income Securities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost, net | $ 51,837 | $ 49,649 |
Gross unrealized gains | 408 | 650 |
Gross unrealized losses | (1,468) | (1,434) |
Fair value | 50,777 | 48,865 |
U.S. government and agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost, net | 10,142 | 8,624 |
Gross unrealized gains | 56 | 114 |
Gross unrealized losses | (168) | (119) |
Fair value | 10,030 | 8,619 |
Municipal | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost, net | 5,491 | 6,049 |
Gross unrealized gains | 61 | 109 |
Gross unrealized losses | (160) | (152) |
Fair value | 5,392 | 6,006 |
Corporate | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost, net | 33,110 | 31,951 |
Gross unrealized gains | 273 | 397 |
Gross unrealized losses | (1,114) | (1,143) |
Fair value | 32,269 | 31,205 |
Foreign government | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost, net | 1,255 | 1,286 |
Gross unrealized gains | 4 | 17 |
Gross unrealized losses | (19) | (13) |
Fair value | 1,240 | 1,290 |
ABS | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost, net | 1,839 | 1,739 |
Gross unrealized gains | 14 | 13 |
Gross unrealized losses | (7) | (7) |
Fair value | $ 1,846 | $ 1,745 |
Investments - Schedule of Matur
Investments - Schedule of Maturities for Fixed Income Securities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized cost, net | ||
Due in one year or less | $ 3,374 | $ 3,422 |
Due after one year through five years | 23,324 | 23,218 |
Due after five years through ten years | 14,894 | 12,553 |
Due after ten years | 8,406 | 8,717 |
Subtotal | 49,998 | 47,910 |
ABS | 1,839 | 1,739 |
Amortized cost, net | 51,837 | 49,649 |
Fair value | ||
Due in one year or less | 3,333 | 3,374 |
Due after one year through five years | 22,678 | 22,614 |
Due after five years through ten years | 14,560 | 12,273 |
Due after ten years | 8,360 | 8,859 |
Subtotal | 48,931 | 47,120 |
ABS | 1,846 | 1,745 |
Total | $ 50,777 | $ 48,865 |
Investments - Schedule of Net I
Investments - Schedule of Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Investment Income: | ||
Investment income, before expense | $ 837 | $ 650 |
Investment expense | (73) | (75) |
Net investment income | 764 | 575 |
Fixed income securities | ||
Net Investment Income: | ||
Investment income, before expense | 526 | 390 |
Equity securities | ||
Net Investment Income: | ||
Investment income, before expense | 15 | 11 |
Mortgage loans | ||
Net Investment Income: | ||
Investment income, before expense | 9 | 8 |
Limited partnership interests | ||
Net Investment Income: | ||
Investment income, before expense | 199 | 134 |
Short-term investments | ||
Net Investment Income: | ||
Investment income, before expense | 67 | 66 |
Other investments | ||
Net Investment Income: | ||
Investment income, before expense | $ 21 | $ 41 |
Investments - Schedule of Net G
Investments - Schedule of Net Gains (Losses) on Investments and Derivatives by Asset Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Realized capital gains and losses by asset type | ||
Net gains (losses) on investments and derivatives | $ (164) | $ 14 |
Fixed income securities | ||
Realized capital gains and losses by asset type | ||
Net gains (losses) on investments and derivatives | (101) | (136) |
Equity securities | ||
Realized capital gains and losses by asset type | ||
Net gains (losses) on investments and derivatives | 62 | 167 |
Limited partnership interests | ||
Realized capital gains and losses by asset type | ||
Net gains (losses) on investments and derivatives | 8 | 22 |
Derivatives | ||
Realized capital gains and losses by asset type | ||
Net gains (losses) on investments and derivatives | (8) | (52) |
Other investments | ||
Realized capital gains and losses by asset type | ||
Net gains (losses) on investments and derivatives | (2) | 13 |
Other | ||
Realized capital gains and losses by asset type | ||
Net gains (losses) on investments and derivatives | $ (123) | $ 0 |
Investments - Schedule of Net_2
Investments - Schedule of Net Gains (Losses) on Investments and Derivatives by Transaction Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments [Abstract] | ||
Sales | $ (111) | $ (120) |
Credit losses | (115) | (12) |
Valuation change of equity investments | 70 | 198 |
Valuation change and settlements of derivatives | (8) | (52) |
Net gains (losses) on investments and derivatives | $ (164) | $ 14 |
Investments - Schedule of Gross
Investments - Schedule of Gross Realized Gains (Losses) on Sales of Fixed Income Securities (Details) - Fixed income securities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||
Gross realized gains | $ 41 | $ 46 |
Gross realized losses | $ (146) | $ (173) |
Investments - Schedule of Net A
Investments - Schedule of Net Appreciation (Decline) Recognized in Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | $ 91 | $ 36 |
Equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 61 | 20 |
Limited partnership interests carried at fair value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | $ 30 | $ 16 |
Investments - Schedule of Credi
Investments - Schedule of Credit Losses Recognized in Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Realized capital gains and losses by asset type | ||
Total fixed income securities | $ (115) | $ (12) |
Total credit losses by asset type | (116) | (12) |
Commitments to fund commercial mortgage loans and bank loans | 1 | 0 |
Fixed income securities | ||
Realized capital gains and losses by asset type | ||
Total fixed income securities | 4 | (9) |
Corporate | ||
Realized capital gains and losses by asset type | ||
Total fixed income securities | 4 | (9) |
Bank loans | ||
Realized capital gains and losses by asset type | ||
Total credit losses by asset type | 3 | (3) |
Other | ||
Realized capital gains and losses by asset type | ||
Total credit losses by asset type | $ (123) | $ 0 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Net Capital Gains and Losses Included in AOCI (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value | ||
Fixed income securities, at fair value | $ 50,777 | $ 48,865 |
Short-term investments | 4,318 | 5,144 |
Derivative instruments | 0 | 0 |
Gross Unrealized Gains | ||
Fixed income securities | 408 | 650 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Gross Unrealized Losses | ||
Fixed income securities | (1,468) | (1,434) |
Short-term investments | (2) | (1) |
Derivative instruments | (2) | (2) |
Unrealized net gains (losses) | ||
Fixed income securities | (1,060) | (784) |
Short-term investments | (2) | (1) |
Derivative instruments | (2) | (2) |
Limited partnership interests | 0 | (4) |
Unrealized net capital gains and losses, pre-tax | (1,064) | (791) |
Amounts recognized for: | ||
Reclassification of noncontrolling interest | 12 | 13 |
Deferred income taxes | 233 | 174 |
Unrealized net capital gains and losses, after-tax | $ (819) | $ (604) |
Investments - Schedule of Chang
Investments - Schedule of Change in Unrealized Net Capital Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | ||
Change in unrealized net capital gains and losses | $ (273) | |
Amounts recognized for: | ||
Reclassification of noncontrolling interest | (1) | |
Deferred income taxes | 59 | |
Change in unrealized net capital gains and losses, after-tax | (215) | $ 682 |
Limited partnership interests | ||
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | ||
Change in unrealized net capital gains and losses | 4 | |
Fixed income securities | ||
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | ||
Change in unrealized net capital gains and losses | (276) | |
Short-term investments | ||
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | ||
Change in unrealized net capital gains and losses | (1) | |
Derivative instruments | ||
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | ||
Change in unrealized net capital gains and losses | $ 0 |
Investments - Schedule of Carry
Investments - Schedule of Carrying Value for Limited Partnership Interests (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | $ 8,562 | $ 8,380 |
EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 7,416 | 7,215 |
Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 1,146 | 1,165 |
Private equity | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 7,266 | 7,154 |
Private equity | EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 6,144 | 6,015 |
Private equity | Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 1,122 | 1,139 |
Real estate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 1,138 | 1,085 |
Real estate | EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 1,114 | 1,059 |
Real estate | Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 24 | 26 |
Other | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 158 | 141 |
Other | EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 158 | 141 |
Other | Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | $ 0 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Short-term investments | $ 4,318 | $ 5,144 |
Accrued investment income | 567 | 539 |
Fixed income securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Accrued investment income | $ 527 | $ 495 |
Investments - Schedule of Other
Investments - Schedule of Other Investments by Asset Type (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments [Line Items] | ||
Other investments | $ 1,004 | $ 1,055 |
Bank loans, net | ||
Investments [Line Items] | ||
Other investments | 164 | 224 |
Real estate | ||
Investments [Line Items] | ||
Other investments | 717 | 709 |
Policy loans | ||
Investments [Line Items] | ||
Other investments | 120 | 119 |
Derivatives | ||
Investments [Line Items] | ||
Other investments | 1 | 1 |
Other | ||
Investments [Line Items] | ||
Other investments | $ 2 | $ 2 |
Investments - Schedule of Rollf
Investments - Schedule of Rollforward of Credit Loss Allowance for Fixed Income Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Ending balance | $ (17) | $ (22) |
Fixed income securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Beginning balance | (36) | (13) |
Credit losses on securities for which credit losses not previously reported | (3) | 0 |
Net (increases) decreases related to credit losses previously reported | 4 | (9) |
(Increase) decrease of allowance related to sales and other | 3 | 0 |
Write-offs | 15 | 0 |
Ending balance | (17) | (22) |
Corporate bonds | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Ending balance | (16) | (20) |
ABS | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Ending balance | $ (1) | $ (2) |
Investments - Schedule of Gro_2
Investments - Schedule of Gross Unrealized Losses and Fair Value by Type and Length of Time Held in a Continuous Unrealized Loss Position (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) contract | Dec. 31, 2023 USD ($) contract | |
Total unrealized losses | ||
Fixed income securities, at fair value | $ 50,777,000,000 | $ 48,865,000,000 |
Fixed income securities | ||
Less than 12 months | ||
Number of issues | contract | 1,096 | 611 |
Fair value | $ 10,766,000,000 | $ 5,274,000,000 |
Unrealized losses | $ (183,000,000) | $ (91,000,000) |
12 months or more | ||
Number of issues | contract | 3,858 | 4,232 |
Fair value | $ 19,903,000,000 | $ 23,017,000,000 |
Unrealized losses | (1,285,000,000) | (1,343,000,000) |
Total unrealized losses | ||
Total unrealized losses | (1,468,000,000) | (1,434,000,000) |
Fixed income securities, at fair value | 3,000,000 | 32,000,000 |
Fixed income securities, unrealized losses | 0 | 3,000,000 |
Fixed income securities, credit loss allowance | $ 1,000,000 | $ 8,000,000 |
U.S. government and agencies | ||
Less than 12 months | ||
Number of issues | contract | 118 | 63 |
Fair value | $ 3,867,000,000 | $ 2,554,000,000 |
Unrealized losses | $ (85,000,000) | $ (38,000,000) |
12 months or more | ||
Number of issues | contract | 104 | 117 |
Fair value | $ 2,196,000,000 | $ 2,513,000,000 |
Unrealized losses | (83,000,000) | (81,000,000) |
Total unrealized losses | ||
Total unrealized losses | (168,000,000) | (119,000,000) |
Fixed income securities, at fair value | $ 10,030,000,000 | $ 8,619,000,000 |
Municipal | ||
Less than 12 months | ||
Number of issues | contract | 397 | 271 |
Fair value | $ 915,000,000 | $ 400,000,000 |
Unrealized losses | $ (9,000,000) | $ (4,000,000) |
12 months or more | ||
Number of issues | contract | 1,600 | 1,784 |
Fair value | $ 2,106,000,000 | $ 2,245,000,000 |
Unrealized losses | (151,000,000) | (148,000,000) |
Total unrealized losses | ||
Total unrealized losses | (160,000,000) | (152,000,000) |
Fixed income securities, at fair value | $ 5,392,000,000 | $ 6,006,000,000 |
Corporate | ||
Less than 12 months | ||
Number of issues | contract | 493 | 251 |
Fair value | $ 5,317,000,000 | $ 2,225,000,000 |
Unrealized losses | $ (84,000,000) | $ (48,000,000) |
12 months or more | ||
Number of issues | contract | 1,962 | 2,106 |
Fair value | $ 15,133,000,000 | $ 17,319,000,000 |
Unrealized losses | (1,030,000,000) | (1,095,000,000) |
Total unrealized losses | ||
Total unrealized losses | (1,114,000,000) | (1,143,000,000) |
Fixed income securities, at fair value | $ 32,269,000,000 | $ 31,205,000,000 |
Foreign government | ||
Less than 12 months | ||
Number of issues | contract | 40 | 7 |
Fair value | $ 453,000,000 | $ 31,000,000 |
Unrealized losses | $ (3,000,000) | $ 0 |
12 months or more | ||
Number of issues | contract | 74 | 75 |
Fair value | $ 327,000,000 | $ 356,000,000 |
Unrealized losses | (16,000,000) | (13,000,000) |
Total unrealized losses | ||
Total unrealized losses | (19,000,000) | (13,000,000) |
Fixed income securities, at fair value | $ 1,240,000,000 | $ 1,290,000,000 |
ABS | ||
Less than 12 months | ||
Number of issues | contract | 48 | 19 |
Fair value | $ 214,000,000 | $ 64,000,000 |
Unrealized losses | $ (2,000,000) | $ (1,000,000) |
12 months or more | ||
Number of issues | contract | 118 | 150 |
Fair value | $ 141,000,000 | $ 584,000,000 |
Unrealized losses | (5,000,000) | (6,000,000) |
Total unrealized losses | ||
Total unrealized losses | (7,000,000) | (7,000,000) |
Fixed income securities, at fair value | $ 1,846,000,000 | $ 1,745,000,000 |
Investment grade fixed income securities | ||
Less than 12 months | ||
Number of issues | contract | 1,032 | 568 |
Fair value | $ 10,551,000,000 | $ 5,061,000,000 |
Unrealized losses | $ (173,000,000) | $ (83,000,000) |
12 months or more | ||
Number of issues | contract | 3,518 | 3,864 |
Fair value | $ 17,647,000,000 | $ 20,429,000,000 |
Unrealized losses | (1,121,000,000) | (1,151,000,000) |
Total unrealized losses | ||
Total unrealized losses | $ (1,294,000,000) | $ (1,234,000,000) |
Below investment grade fixed income securities | ||
Less than 12 months | ||
Number of issues | contract | 64 | 43 |
Fair value | $ 215,000,000 | $ 213,000,000 |
Unrealized losses | $ (10,000,000) | $ (8,000,000) |
12 months or more | ||
Number of issues | contract | 340 | 368 |
Fair value | $ 2,256,000,000 | $ 2,588,000,000 |
Unrealized losses | (164,000,000) | (192,000,000) |
Total unrealized losses | ||
Total unrealized losses | $ (174,000,000) | $ (200,000,000) |
Investments - Schedule of Gro_3
Investments - Schedule of Gross Unrealized Losses by Unrealized Loss Position and Credit Quality (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investment grade fixed income securities | ||
Investments [Line Items] | ||
Fixed income securities with unrealized loss position less than 20% of amortized cost, net | $ (1,226) | |
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net | (68) | |
Total unrealized losses | (1,294) | $ (1,234) |
Below investment grade fixed income securities | ||
Investments [Line Items] | ||
Fixed income securities with unrealized loss position less than 20% of amortized cost, net | (150) | |
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net | (24) | |
Total unrealized losses | (174) | (200) |
Fixed income securities | ||
Investments [Line Items] | ||
Fixed income securities with unrealized loss position less than 20% of amortized cost, net | (1,376) | |
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net | (92) | |
Total unrealized losses | $ (1,468) | $ (1,434) |
Investments - Schedule of Accru
Investments - Schedule of Accrued Interest (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Accrued investment income | $ 567 | $ 539 |
Mortgage loans | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Accrued investment income | 3 | 3 |
Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Accrued investment income | $ 3 | $ 3 |
Investments - Schedule of Mortg
Investments - Schedule of Mortgage Loans Amortized Cost by Debt Service Coverage Ratio Distribution and Year of Origination (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, net | $ 815 | $ 822 |
Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 826 | 833 |
Allowance | (11) | (11) |
Amortized cost, net | 815 | 822 |
Mortgage loans | 2019 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 345 | |
Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 52 | |
Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 183 | |
Mortgage loans | 2022 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 103 | |
Mortgage loans | 2023 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 143 | |
Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | 13 |
Below 1.0 | Mortgage loans | 2019 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2022 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2023 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.0 - 1.25 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 54 | 41 |
1.0 - 1.25 | Mortgage loans | 2019 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 39 | |
1.0 - 1.25 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.0 - 1.25 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.0 - 1.25 | Mortgage loans | 2022 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 13 | |
1.0 - 1.25 | Mortgage loans | 2023 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 2 | |
1.0 - 1.25 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.26 - 1.50 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 132 | 133 |
1.26 - 1.50 | Mortgage loans | 2019 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 27 | |
1.26 - 1.50 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 10 | |
1.26 - 1.50 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.26 - 1.50 | Mortgage loans | 2022 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 30 | |
1.26 - 1.50 | Mortgage loans | 2023 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 65 | |
1.26 - 1.50 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Above 1.50 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 640 | $ 646 |
Above 1.50 | Mortgage loans | 2019 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 279 | |
Above 1.50 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 42 | |
Above 1.50 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 183 | |
Above 1.50 | Mortgage loans | 2022 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 60 | |
Above 1.50 | Mortgage loans | 2023 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 76 | |
Above 1.50 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | $ 0 |
Investments - Schedule of Rol_2
Investments - Schedule of Rollforward of Credit Loss Allowance for Mortgage Loans (Details) - Mortgage loans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Beginning balance | $ (11) | $ (7) |
Net increases related to credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Ending balance | $ (11) | $ (7) |
Investments - Schedule of Bank
Investments - Schedule of Bank Loans Amortized Cost by Credit Rating and Year of Origination (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost, net | $ 815 | $ 822 |
Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 177 | 246 |
Allowance | (13) | (22) |
Amortized cost, net | 164 | 224 |
NAIC 2 / BBB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 4 | 9 |
NAIC 3 / BB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 20 | 38 |
NAIC 4 / B | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 134 | 153 |
NAIC 5-6 / CCC and below | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 19 | $ 46 |
2019 and prior | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 32 | |
2019 and prior | NAIC 2 / BBB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2019 and prior | NAIC 3 / BB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2019 and prior | NAIC 4 / B | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 24 | |
2019 and prior | NAIC 5-6 / CCC and below | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 8 | |
2020 | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 3 | |
2020 | NAIC 2 / BBB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 2 | |
2020 | NAIC 3 / BB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2020 | NAIC 4 / B | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 1 | |
2020 | NAIC 5-6 / CCC and below | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2021 | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 26 | |
2021 | NAIC 2 / BBB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2021 | NAIC 3 / BB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 4 | |
2021 | NAIC 4 / B | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 17 | |
2021 | NAIC 5-6 / CCC and below | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 5 | |
2022 | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 6 | |
2022 | NAIC 2 / BBB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2022 | NAIC 3 / BB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2022 | NAIC 4 / B | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 6 | |
2022 | NAIC 5-6 / CCC and below | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2023 | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 85 | |
2023 | NAIC 2 / BBB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 0 | |
2023 | NAIC 3 / BB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 9 | |
2023 | NAIC 4 / B | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 71 | |
2023 | NAIC 5-6 / CCC and below | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 5 | |
Current | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 25 | |
Current | NAIC 2 / BBB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 2 | |
Current | NAIC 3 / BB | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 7 | |
Current | NAIC 4 / B | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | 15 | |
Current | NAIC 5-6 / CCC and below | Bank loans, net | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized cost before allowance | $ 1 |
Investments - Schedule of Rol_3
Investments - Schedule of Rollforward of Credit Loss Allowance for Bank Loans (Details) - Bank loans, net - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Beginning balance | $ (22) | $ (57) |
Net (increases) decreases related to credit losses | 3 | (3) |
Reduction of allowance related to sales | 0 | 5 |
Write-offs | 6 | 3 |
Ending balance | $ (13) | $ (52) |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Fixed income securities, at fair value | $ 50,777 | $ 48,865 |
Assets at fair value | 57,452 | 56,409 |
Fixed Income Securities Valued Based on Nonbinding Broker Quotes | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Assets at fair value | 23 | 26 |
Municipal Not Rated by Third Party Credit Rating Agencies | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Assets at fair value | 8 | 11 |
Significant unobservable inputs (Level 3) | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Assets at fair value | 694 | 691 |
Recurring basis | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Fixed income securities, at fair value | 50,777 | 48,865 |
Assets at fair value | 57,452 | 56,394 |
Recurring basis | Significant unobservable inputs (Level 3) | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Fixed income securities, at fair value | 143 | 153 |
Assets at fair value | 694 | $ 676 |
Limited partnership interests | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Commitments to invest in limited partnership interests | $ 172 | |
Limited partnership interests | Minimum | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Investment assets, useful life (in years) | 10 years | |
Limited partnership interests | Maximum | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Investment assets, useful life (in years) | 12 years |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Fixed income securities, at fair value | $ 50,777 | $ 48,865 |
Equity securities | 2,383 | 2,411 |
Short-term investments | 4,318 | 5,144 |
Other investments | 1,004 | 1,055 |
Total assets at fair value | 57,452 | 56,409 |
Counterparty and cash collateral netting | $ (4) | $ (2) |
% of total assets at fair value | 0% | 0% |
Total | $ 58,598 | $ 57,574 |
Liabilities | ||
% of total liabilities at fair value | (100.00%) | (200.00%) |
Preferred stock measured at cost | $ 150 | $ 150 |
Fair value | ||
Assets | ||
% of total assets at fair value | 100% | 100% |
Liabilities | ||
% of total liabilities at fair value | 100% | 100% |
U.S. government and agencies | ||
Assets | ||
Fixed income securities, at fair value | $ 10,030 | $ 8,619 |
Municipal | ||
Assets | ||
Fixed income securities, at fair value | 5,392 | 6,006 |
Foreign government | ||
Assets | ||
Fixed income securities, at fair value | 1,240 | 1,290 |
ABS | ||
Assets | ||
Fixed income securities, at fair value | 1,846 | 1,745 |
Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Total assets at fair value | $ 13,744 | $ 11,941 |
% of total assets at fair value | 23.90% | 21.20% |
Liabilities | ||
% of total liabilities at fair value | 66.70% | 50% |
Significant other observable inputs (Level 2) | ||
Assets | ||
Total assets at fair value | $ 43,018 | $ 43,779 |
% of total assets at fair value | 74.90% | 77.60% |
Liabilities | ||
% of total liabilities at fair value | 133.30% | 250% |
Significant unobservable inputs (Level 3) | ||
Assets | ||
Total assets at fair value | $ 694 | $ 691 |
% of total assets at fair value | 1.20% | 1.20% |
Liabilities | ||
% of total liabilities at fair value | 0% | 0% |
Fair Value Net Asset Value | ||
Assets | ||
Investments reported at NAV | $ 1,146 | $ 1,165 |
Recurring basis | ||
Assets | ||
Fixed income securities, at fair value | 50,777 | 48,865 |
Equity securities | 2,233 | 2,261 |
Short-term investments | 4,318 | 5,144 |
Other investments | 3 | 3 |
Other investments | (4) | (2) |
Other assets | 121 | 121 |
Total assets at fair value | 57,452 | 56,394 |
Counterparty and cash collateral netting | (4) | (2) |
Liabilities | ||
Other liabilities | (3) | (4) |
Other liabilities | 3 | 8 |
Total recurring basis liabilities | (3) | (4) |
Counterparty and cash collateral netting | 3 | 8 |
Recurring basis | U.S. government and agencies | ||
Assets | ||
Fixed income securities, at fair value | 10,030 | 8,619 |
Recurring basis | Municipal | ||
Assets | ||
Fixed income securities, at fair value | 5,392 | 6,006 |
Recurring basis | Corporate - public | ||
Assets | ||
Fixed income securities, at fair value | 23,870 | 23,298 |
Recurring basis | Corporate - privately placed | ||
Assets | ||
Fixed income securities, at fair value | 8,399 | 7,907 |
Recurring basis | Foreign government | ||
Assets | ||
Fixed income securities, at fair value | 1,240 | 1,290 |
Recurring basis | ABS | ||
Assets | ||
Fixed income securities, at fair value | 1,846 | 1,745 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Fixed income securities, at fair value | 10,016 | 8,606 |
Equity securities | 1,607 | 1,656 |
Short-term investments | 2,120 | 1,676 |
Other investments | 0 | 0 |
Other assets | 1 | 3 |
Total assets at fair value | 13,744 | 11,941 |
Liabilities | ||
Other liabilities | (2) | (2) |
Total recurring basis liabilities | (2) | (2) |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | U.S. government and agencies | ||
Assets | ||
Fixed income securities, at fair value | 10,016 | 8,606 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Municipal | ||
Assets | ||
Fixed income securities, at fair value | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Corporate - public | ||
Assets | ||
Fixed income securities, at fair value | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Corporate - privately placed | ||
Assets | ||
Fixed income securities, at fair value | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Foreign government | ||
Assets | ||
Fixed income securities, at fair value | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | ABS | ||
Assets | ||
Fixed income securities, at fair value | 0 | 0 |
Recurring basis | Significant other observable inputs (Level 2) | ||
Assets | ||
Fixed income securities, at fair value | 40,618 | 40,106 |
Equity securities | 218 | 203 |
Short-term investments | 2,177 | 3,467 |
Other investments | 5 | 3 |
Other assets | 0 | 0 |
Total assets at fair value | 43,018 | 43,779 |
Liabilities | ||
Other liabilities | (4) | (10) |
Total recurring basis liabilities | (4) | (10) |
Recurring basis | Significant other observable inputs (Level 2) | U.S. government and agencies | ||
Assets | ||
Fixed income securities, at fair value | 14 | 13 |
Recurring basis | Significant other observable inputs (Level 2) | Municipal | ||
Assets | ||
Fixed income securities, at fair value | 5,384 | 5,995 |
Recurring basis | Significant other observable inputs (Level 2) | Corporate - public | ||
Assets | ||
Fixed income securities, at fair value | 23,847 | 23,272 |
Recurring basis | Significant other observable inputs (Level 2) | Corporate - privately placed | ||
Assets | ||
Fixed income securities, at fair value | 8,345 | 7,849 |
Recurring basis | Significant other observable inputs (Level 2) | Foreign government | ||
Assets | ||
Fixed income securities, at fair value | 1,240 | 1,290 |
Recurring basis | Significant other observable inputs (Level 2) | ABS | ||
Assets | ||
Fixed income securities, at fair value | 1,788 | 1,687 |
Recurring basis | Significant unobservable inputs (Level 3) | ||
Assets | ||
Fixed income securities, at fair value | 143 | 153 |
Equity securities | 408 | 402 |
Short-term investments | 21 | 1 |
Other investments | 2 | 2 |
Other assets | 120 | 118 |
Total assets at fair value | 694 | 676 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total recurring basis liabilities | 0 | 0 |
Recurring basis | Significant unobservable inputs (Level 3) | U.S. government and agencies | ||
Assets | ||
Fixed income securities, at fair value | 0 | 0 |
Recurring basis | Significant unobservable inputs (Level 3) | Municipal | ||
Assets | ||
Fixed income securities, at fair value | 8 | 11 |
Recurring basis | Significant unobservable inputs (Level 3) | Corporate - public | ||
Assets | ||
Fixed income securities, at fair value | 23 | 26 |
Recurring basis | Significant unobservable inputs (Level 3) | Corporate - privately placed | ||
Assets | ||
Fixed income securities, at fair value | 54 | 58 |
Recurring basis | Significant unobservable inputs (Level 3) | Foreign government | ||
Assets | ||
Fixed income securities, at fair value | 0 | 0 |
Recurring basis | Significant unobservable inputs (Level 3) | ABS | ||
Assets | ||
Fixed income securities, at fair value | 58 | 58 |
Non-recurring basis | ||
Assets | ||
Total assets at fair value | 0 | 15 |
Non-recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Total assets at fair value | 0 | 0 |
Non-recurring basis | Significant other observable inputs (Level 2) | ||
Assets | ||
Total assets at fair value | 0 | 0 |
Non-recurring basis | Significant unobservable inputs (Level 3) | ||
Assets | ||
Total assets at fair value | $ 0 | $ 15 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Schedule of Rollforward of Level 3 Assets and Liabilities Held at Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Assets | ||
Balance at beginning of period | $ 676 | $ 618 |
Total gains (losses) included in: Net income | 7 | 3 |
Total gains (losses) included in: OCI | 2 | 2 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 20 | 42 |
Sales | (9) | (63) |
Issues | 0 | 0 |
Settlements | (2) | (2) |
Balance at end of period | $ 694 | $ 600 |
Net investment income | ||
Total Level 3 gains (losses) included in net income | ||
Fair Value, Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income |
Gain (loss) included in earnings | $ 0 | $ (5) |
Net gains (losses) on investments and derivatives | ||
Total Level 3 gains (losses) included in net income | ||
Fair Value, Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net gains (losses) on investments and derivatives | Net gains (losses) on investments and derivatives |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net gains (losses) on investments and derivatives | Net gains (losses) on investments and derivatives |
Gain (loss) included in earnings | $ 5 | $ (1) |
Operating costs and expenses | ||
Total Level 3 gains (losses) included in net income | ||
Fair Value, Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating costs and expenses | Operating costs and expenses |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating costs and expenses | Operating costs and expenses |
Gain (loss) included in earnings | $ 2 | $ 9 |
Municipal | ||
Assets | ||
Balance at beginning of period | 11 | 21 |
Total gains (losses) included in: Net income | 0 | 0 |
Total gains (losses) included in: OCI | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | (1) | (3) |
Issues | 0 | 0 |
Settlements | (2) | (1) |
Balance at end of period | 8 | 17 |
Corporate - public | ||
Assets | ||
Balance at beginning of period | 26 | 69 |
Total gains (losses) included in: Net income | 0 | (1) |
Total gains (losses) included in: OCI | 2 | 2 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | (5) | (41) |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 23 | 29 |
Corporate - privately placed | ||
Assets | ||
Balance at beginning of period | 58 | 55 |
Total gains (losses) included in: Net income | (4) | (4) |
Total gains (losses) included in: OCI | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | (2) |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 54 | 49 |
ABS | ||
Assets | ||
Balance at beginning of period | 58 | 28 |
Total gains (losses) included in: Net income | 0 | 0 |
Total gains (losses) included in: OCI | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issues | 0 | 0 |
Settlements | 0 | (1) |
Balance at end of period | 58 | 27 |
Fixed income securities | ||
Assets | ||
Balance at beginning of period | 153 | 173 |
Total gains (losses) included in: Net income | (4) | (5) |
Total gains (losses) included in: OCI | 2 | 2 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | (6) | (46) |
Issues | 0 | 0 |
Settlements | (2) | (2) |
Balance at end of period | 143 | 122 |
Equity securities | ||
Assets | ||
Balance at beginning of period | 402 | 333 |
Total gains (losses) included in: Net income | 9 | 0 |
Total gains (losses) included in: OCI | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 42 |
Sales | (3) | (17) |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 408 | 358 |
Short-term investments | ||
Assets | ||
Balance at beginning of period | 1 | 6 |
Total gains (losses) included in: Net income | 0 | 0 |
Total gains (losses) included in: OCI | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 20 | 0 |
Sales | 0 | 0 |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 21 | 6 |
Other investments | ||
Assets | ||
Balance at beginning of period | 2 | 3 |
Total gains (losses) included in: Net income | 0 | (1) |
Total gains (losses) included in: OCI | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 2 | 2 |
Other assets | ||
Assets | ||
Balance at beginning of period | 118 | 103 |
Total gains (losses) included in: Net income | 2 | 9 |
Total gains (losses) included in: OCI | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | $ 120 | $ 112 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Schedule of Valuation Changes Included in Net Income and OCI for Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Total recurring Level 3 assets | $ 7 | $ 3 |
Fair Value Recurring Basis Unobservable Input Reconciliation Liability Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Total included in net income | Total included in net income |
Total included in net income | $ 7 | $ 3 |
Total included in net income | 7 | 3 |
Changes in unrealized net capital gains and losses reported in OCI | $ 2 | $ 1 |
Net investment income | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income |
Total included in net income | $ 0 | $ (5) |
Net gains (losses) on investments and derivatives | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net gains (losses) on investments and derivatives | Net gains (losses) on investments and derivatives |
Total included in net income | $ 5 | $ (1) |
Operating costs and expenses | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating costs and expenses | Operating costs and expenses |
Total included in net income | $ 2 | $ 9 |
Corporate - privately placed | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Total recurring Level 3 assets | (4) | (4) |
Fixed income securities | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Total recurring Level 3 assets | (4) | (4) |
Equity securities | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Total recurring Level 3 assets | 9 | (1) |
Other investments | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Total recurring Level 3 assets | 0 | (1) |
Other assets | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Total recurring Level 3 assets | 2 | 9 |
Corporate - public | ||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||
Changes in unrealized net capital gains and losses reported in OCI | $ 2 | $ 1 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Schedule of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||||
Mortgage loans | $ 815 | $ 822 | ||
Financial liabilities | ||||
Debt | 7,938 | 7,942 | ||
Liability for collateral | 2,049 | 1,891 | $ 1,807 | $ 2,011 |
Significant unobservable inputs (Level 3) | Amortized cost, net | ||||
Financial assets | ||||
Mortgage loans | 815 | 822 | ||
Bank loans | 164 | 224 | ||
Financial liabilities | ||||
Contractholder funds on investment contracts | 44 | 46 | ||
Significant unobservable inputs (Level 3) | Fair value | ||||
Financial assets | ||||
Mortgage loans | 762 | 769 | ||
Bank loans | 177 | 238 | ||
Financial liabilities | ||||
Contractholder funds on investment contracts | 44 | 46 | ||
Significant other observable inputs (Level 2) | Amortized cost, net | ||||
Financial liabilities | ||||
Debt | 7,938 | 7,942 | ||
Liability for collateral | 2,049 | 1,891 | ||
Significant other observable inputs (Level 2) | Fair value | ||||
Financial liabilities | ||||
Debt | 7,590 | 7,655 | ||
Liability for collateral | $ 2,049 | $ 1,891 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Potential recoveries | $ 0 |
Contingent consideration term | 10 years |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Volume and Fair Value Positions of Derivative Instruments (Details) - Derivatives not designated as accounting hedging instruments $ in Millions | Mar. 31, 2024 USD ($) contract | Dec. 31, 2023 USD ($) contract |
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | $ 476 | $ 562 |
Total liability derivatives, notional amount | 395 | 325 |
Total derivatives, notional amount | $ 871 | $ 887 |
Total asset derivatives, number of contracts | contract | 5,573 | 21,816 |
Total liability derivatives, number of contracts | contract | 11,915 | 3,155 |
Total derivatives, Number of contracts | contract | 17,488 | 24,971 |
Net amount on balance sheet | $ 122 | $ 118 |
Net amount on balance sheet | (2) | (6) |
Total derivatives, fair value, net | 120 | 112 |
Asset derivatives, gross asset | 123 | 123 |
Liability derivatives, gross asset | 3 | 1 |
Asset derivatives, gross liability | (1) | (5) |
Liability derivatives gross liability | $ (5) | $ (7) |
Interest rate contracts | ||
Derivatives, Fair Value | ||
Total asset derivatives, number of contracts | contract | 4,644 | 20,479 |
Total liability derivatives, number of contracts | contract | 11,163 | 2,175 |
Net amount on balance sheet | $ 1 | $ 2 |
Net amount on balance sheet | (2) | (1) |
Asset derivatives, gross asset | 1 | 2 |
Liability derivatives, gross asset | 0 | 0 |
Asset derivatives, gross liability | 0 | 0 |
Liability derivatives gross liability | $ (2) | $ (1) |
Options | ||
Derivatives, Fair Value | ||
Total asset derivatives, number of contracts | contract | 16 | 32 |
Total liability derivatives, number of contracts | contract | 16 | |
Net amount on balance sheet | $ 0 | $ 0 |
Net amount on balance sheet | 0 | |
Asset derivatives, gross asset | 0 | 0 |
Liability derivatives, gross asset | 0 | |
Asset derivatives, gross liability | 0 | $ 0 |
Liability derivatives gross liability | $ 0 | |
Futures | ||
Derivatives, Fair Value | ||
Total asset derivatives, number of contracts | contract | 913 | 1,305 |
Total liability derivatives, number of contracts | contract | 736 | 980 |
Net amount on balance sheet | $ 0 | $ 1 |
Net amount on balance sheet | 0 | (1) |
Asset derivatives, gross asset | 0 | 1 |
Liability derivatives, gross asset | 0 | 0 |
Asset derivatives, gross liability | 0 | 0 |
Liability derivatives gross liability | 0 | (1) |
Foreign currency contracts | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 183 | 278 |
Total liability derivatives, notional amount | 384 | 306 |
Net amount on balance sheet | 2 | (2) |
Net amount on balance sheet | 1 | (3) |
Asset derivatives, gross asset | 2 | 2 |
Liability derivatives, gross asset | 3 | 1 |
Asset derivatives, gross liability | 0 | (4) |
Liability derivatives gross liability | (2) | (4) |
Contingent consideration | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 250 | 250 |
Net amount on balance sheet | 120 | 118 |
Asset derivatives, gross asset | 120 | 118 |
Asset derivatives, gross liability | 0 | 0 |
Credit default contracts | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 43 | 34 |
Total liability derivatives, notional amount | 11 | 19 |
Net amount on balance sheet | (1) | (1) |
Net amount on balance sheet | (1) | (1) |
Asset derivatives, gross asset | 0 | 0 |
Liability derivatives, gross asset | 0 | 0 |
Asset derivatives, gross liability | (1) | (1) |
Liability derivatives gross liability | $ (1) | $ (1) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Gross and Net Amounts for OTC Derivatives (Details) - OTC derivatives - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Asset derivatives | ||
Gross amount | $ 5 | $ 3 |
Counter-party netting | (4) | (6) |
Cash collateral (received) pledged | 0 | 4 |
Net amount on balance sheet | 1 | 1 |
Securities collateral (received) pledged | 0 | 0 |
Net amount | 1 | 1 |
Liability derivatives | ||
Gross amount | (4) | (10) |
Counter-party netting | 4 | 6 |
Cash collateral (received) pledged | (1) | 2 |
Net amount on balance sheet | (1) | (2) |
Securities collateral (received) pledged | 0 | 0 |
Net amount | $ (1) | $ (2) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Gains (Losses) from Valuation and Settlements Reported on Derivatives Not Designated as Accounting Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | $ 8 | $ (35) |
Net gains (losses) on investments and derivatives | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (8) | (52) |
Operating costs and expenses | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 16 | 17 |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (7) | (35) |
Interest rate contracts | Net gains (losses) on investments and derivatives | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (7) | (35) |
Interest rate contracts | Operating costs and expenses | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 0 | 0 |
Equity and index contracts | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 3 | 12 |
Equity and index contracts | Net gains (losses) on investments and derivatives | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (11) | 4 |
Equity and index contracts | Operating costs and expenses | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 14 | 8 |
Contingent consideration | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 2 | 9 |
Contingent consideration | Net gains (losses) on investments and derivatives | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 0 | 0 |
Contingent consideration | Operating costs and expenses | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 2 | 9 |
Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 11 | (7) |
Foreign currency contracts | Net gains (losses) on investments and derivatives | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 11 | (7) |
Foreign currency contracts | Operating costs and expenses | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 0 | 0 |
Credit default contracts | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (1) | (14) |
Credit default contracts | Net gains (losses) on investments and derivatives | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (1) | (14) |
Credit default contracts | Operating costs and expenses | ||
Derivative Instruments, Gain (Loss) | ||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of OTC Cash and Securities Collateral Pledged (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Pledged by the Company | $ 2 | |
Pledged to the Company | 3 | |
Collateral posted under MNAs for contracts containing credit-risk contingent features | $ 1 | $ 5 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Schedule of OTC Derivatives Counterparty Credit Exposure by Counterparty Credit Rating (Details) $ in Millions | Mar. 31, 2024 USD ($) counter-party | Dec. 31, 2023 USD ($) counter-party |
Credit Derivatives | ||
Number of counter- parties | counter-party | 2 | 0 |
Notional amount | $ 445 | $ 0 |
Credit exposure | 2 | 0 |
Exposure, net of collateral | $ 0 | $ 0 |
A+ | ||
Credit Derivatives | ||
Number of counter- parties | counter-party | 2 | 0 |
Notional amount | $ 445 | $ 0 |
Credit exposure | 2 | 0 |
Exposure, net of collateral | $ 0 | $ 0 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Exchange Traded and Cleared Margin Deposits (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Pledged by the Company | $ 67 |
Received by the Company | $ 0 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Schedule of Fair Value of Instruments with Credit-Risk-Contingent Features (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross liability fair value of contracts containing credit-risk-contingent features | $ 3 | $ 10 |
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs | (2) | (3) |
Collateral posted under MNAs for contracts containing credit-risk-contingent features | (1) | (5) |
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently | $ 0 | $ 2 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Skyland | |||
Variable Interest Entity [Line Items] | |||
Quota share (as a percent) | 100% | ||
Adirondack | |||
Variable Interest Entity [Line Items] | |||
Quota share (as a percent) | 36.50% | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Management fee | $ 10 | $ 11 | |
Notes payable | 123 | $ 123 | |
Valuation allowance | 123 | ||
Variable Interest Entity, Primary Beneficiary | Consolidation, Eliminations | |||
Variable Interest Entity [Line Items] | |||
Ceded losses incurred | 12 | 7 | |
Variable Interest Entity, Primary Beneficiary | Allstate Protection | |||
Variable Interest Entity [Line Items] | |||
Insurance premiums and contract charges | 61 | 57 | |
Costs and expenses | $ 87 | $ 59 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Assets and Liabilities of Reciprocal Exchanges (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Investments | |||
Fixed income securities, at fair value | $ 50,777 | $ 48,865 | |
Short-term investments | 4,318 | 5,144 | |
Deferred policy acquisition costs | 5,946 | 5,940 | $ 5,471 |
Premium installment and other receivables, net | 10,573 | 10,044 | |
Reinsurance recoverables, net | 8,726 | 8,809 | |
Other assets | 6,255 | 6,051 | |
Total assets | 105,241 | 103,362 | |
Liabilities | |||
Reserve for property and casualty insurance claims and claims expense | 40,143 | 39,858 | |
Unearned premiums | 24,945 | 24,709 | |
Total liabilities | 86,761 | 85,732 | |
Variable Interest Entity, Primary Beneficiary | |||
Investments | |||
Fixed income securities, at fair value | 241 | 267 | |
Short-term investments | 13 | 7 | |
Deferred policy acquisition costs | 19 | 25 | |
Premium installment and other receivables, net | 38 | 44 | |
Reinsurance recoverables, net | 74 | 76 | |
Other assets | 29 | 54 | |
Total assets | 414 | 473 | |
Liabilities | |||
Reserve for property and casualty insurance claims and claims expense | 227 | 201 | |
Unearned premiums | 160 | 177 | |
Other liabilities and expenses | 41 | 77 | |
Total liabilities | 428 | 455 | |
Consolidation, Eliminations | |||
Investments | |||
Total assets | (30) | (26) | |
Liabilities | |||
Total liabilities | $ (201) | $ (189) |
Reserve for Property and Casu_3
Reserve for Property and Casualty Insurance Claims and Claims Expense - Schedule of Rollforward of the Reserve for Property and Casualty Insurance Claims and Claims Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Incurred claims and claims expense related to: | ||||
Prior years | $ (151) | $ (15) | ||
Property and casualty | ||||
Property-liability insurance claims and claims expense | ||||
Beginning balance | 39,858 | 37,541 | ||
Less recoverables | 8,333 | 9,111 | $ 8,396 | $ 9,176 |
Activity in the reserve for property-liability insurance claims and claims expense: | ||||
Net beginning balance | 31,462 | 28,365 | ||
Incurred claims and claims expense related to: | ||||
Current year | 9,652 | 10,341 | ||
Prior years | (151) | (15) | ||
Total incurred | 9,501 | 10,326 | ||
Claims and claims expense paid related to: | ||||
Current year | (3,163) | (3,122) | ||
Prior years | (5,990) | (6,036) | ||
Total paid | (9,153) | (9,158) | ||
Net ending balance | 31,810 | 29,533 | ||
Plus: Recoverables | 8,333 | 9,111 | $ 8,396 | $ 9,176 |
Ending balance | $ 40,143 | $ 38,644 |
Reserve for Property and Casu_4
Reserve for Property and Casualty Insurance Claims and Claims Expense - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Catastrophe | ||
Increase (decrease) in claims and claims expense | ||
Losses from catastrophes, net of recoveries | $ 731 | $ 1,690 |
Reserve for Property and Casu_5
Reserve for Property and Casualty Insurance Claims and Claims Expense - Schedule of Prior Year Reserve Re-Estimates Included in Claims and Claims Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (decrease) in claims and claims expense | ||
Prior years | $ (151) | $ (15) |
Auto | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (74) | (25) |
Homeowners | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (189) | (20) |
Other personal lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 52 | 3 |
Commercial lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 51 | 24 |
Other business lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 5 | 1 |
Run-off Property-Liability | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 4 | 2 |
Catastrophe losses | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (162) | (42) |
Catastrophe losses | Auto | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (7) | (28) |
Catastrophe losses | Homeowners | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (149) | (8) |
Catastrophe losses | Other personal lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (3) | (7) |
Catastrophe losses | Commercial lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (3) | 1 |
Catastrophe losses | Other business lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 0 | 0 |
Catastrophe losses | Run-off Property-Liability | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 0 | 0 |
Non-catastrophe losses | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 11 | 27 |
Non-catastrophe losses | Auto | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (67) | 3 |
Non-catastrophe losses | Homeowners | ||
Increase (decrease) in claims and claims expense | ||
Prior years | (40) | (12) |
Non-catastrophe losses | Other personal lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 55 | 10 |
Non-catastrophe losses | Commercial lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 54 | 23 |
Non-catastrophe losses | Other business lines | ||
Increase (decrease) in claims and claims expense | ||
Prior years | 5 | 1 |
Non-catastrophe losses | Run-off Property-Liability | ||
Increase (decrease) in claims and claims expense | ||
Prior years | $ 4 | $ 2 |
Reserve for Future Policy Ben_3
Reserve for Future Policy Benefits and Contractholder Funds - Schedule of Rollforward of Reserve for Future Policy Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Present value of expected net premiums | ||||
Beginning balance | $ 2,013 | $ 1,702 | ||
Beginning balance at original discount rate | 2,067 | 1,795 | ||
Effect of changes in cash flow assumptions | $ 0 | $ 0 | ||
Effect of actual variances from expected experience | (33) | (37) | ||
Adjusted beginning balance | 2,034 | 1,758 | ||
Issuances | 262 | 216 | ||
Interest accrual | 23 | 15 | ||
Net premiums collected | (114) | (107) | ||
Ending balance at original discount rate | 2,205 | 1,882 | ||
Effect of changes in discount rate assumptions | (90) | (67) | ||
Ending balance | 2,115 | 1,815 | ||
Present value of expected future policy benefits | ||||
Beginning balance | 3,110 | 2,753 | ||
Beginning balance at original discount rate | 3,151 | 2,850 | ||
Effect of changes in cash flow assumptions | (6) | 0 | ||
Effect of actual variances from expected experience | (39) | (43) | ||
Adjusted beginning balance | 3,106 | 2,807 | ||
Issuances | 263 | 215 | ||
Interest accrual | 34 | 25 | ||
Benefit payments | (114) | (111) | ||
Ending balance at original discount rate | 3,289 | 2,936 | ||
Effect of changes in discount rate assumptions | (108) | (54) | ||
Ending balance | 3,181 | 2,882 | ||
Net reserve for future policy benefits | 1,066 | 1,067 | ||
Less: reinsurance recoverables | 81 | 78 | ||
Net reserve for future policy benefits, after reinsurance recoverables | 985 | 989 | ||
Reserves related to short-duration contracts | 259 | 271 | ||
Accident and health insurance | ||||
Present value of expected net premiums | ||||
Beginning balance | 1,688 | 1,464 | ||
Beginning balance at original discount rate | 1,737 | 1,549 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (44) | (42) | ||
Adjusted beginning balance | 1,693 | 1,507 | ||
Issuances | 230 | 199 | ||
Interest accrual | 18 | 12 | ||
Net premiums collected | (98) | (95) | ||
Ending balance at original discount rate | 1,843 | 1,623 | ||
Effect of changes in discount rate assumptions | (81) | (62) | ||
Ending balance | 1,762 | 1,561 | ||
Present value of expected future policy benefits | ||||
Beginning balance | 2,453 | 2,229 | ||
Beginning balance at original discount rate | 2,495 | 2,316 | ||
Effect of changes in cash flow assumptions | (6) | 0 | ||
Effect of actual variances from expected experience | (47) | (47) | ||
Adjusted beginning balance | 2,442 | 2,269 | ||
Issuances | 230 | 199 | ||
Interest accrual | 25 | 19 | ||
Benefit payments | (102) | (99) | ||
Ending balance at original discount rate | 2,595 | 2,388 | ||
Effect of changes in discount rate assumptions | (86) | (53) | ||
Ending balance | 2,509 | 2,335 | ||
Net reserve for future policy benefits | 747 | 774 | ||
Less: reinsurance recoverables | 80 | 76 | ||
Net reserve for future policy benefits, after reinsurance recoverables | 667 | 698 | ||
Traditional life | ||||
Present value of expected net premiums | ||||
Beginning balance | 325 | 238 | ||
Beginning balance at original discount rate | 330 | 246 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | 11 | 5 | ||
Adjusted beginning balance | 341 | 251 | ||
Issuances | 32 | 17 | ||
Interest accrual | 5 | 3 | ||
Net premiums collected | (16) | (12) | ||
Ending balance at original discount rate | 362 | 259 | ||
Effect of changes in discount rate assumptions | (9) | (5) | ||
Ending balance | 353 | 254 | ||
Present value of expected future policy benefits | ||||
Beginning balance | 657 | 524 | ||
Beginning balance at original discount rate | 656 | 534 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | 8 | 4 | ||
Adjusted beginning balance | $ 664 | $ 538 | ||
Issuances | 33 | 16 | ||
Interest accrual | 9 | 6 | ||
Benefit payments | (12) | (12) | ||
Ending balance at original discount rate | 694 | 548 | ||
Effect of changes in discount rate assumptions | (22) | (1) | ||
Ending balance | 672 | 547 | ||
Net reserve for future policy benefits | 319 | 293 | ||
Less: reinsurance recoverables | 1 | 2 | ||
Net reserve for future policy benefits, after reinsurance recoverables | $ 318 | $ 291 |
Reserve for Future Policy Ben_4
Reserve for Future Policy Benefits and Contractholder Funds - Schedule of Revenue and Interest Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenues | $ 255 | $ 250 |
Interest expense | 11 | 10 |
Accident and health insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenues | 221 | 225 |
Interest expense | 7 | 7 |
Traditional life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenues | 34 | 25 |
Interest expense | $ 4 | $ 3 |
Reserve for Future Policy Ben_5
Reserve for Future Policy Benefits and Contractholder Funds - Schedule of Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Accident and health insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums, undiscounted | $ 5,580 | $ 5,068 |
Expected future gross premiums, discounted | 3,807 | 3,671 |
Expected future benefits and expenses, undiscounted | 3,754 | 3,351 |
Expected future benefits and expenses, discounted | 2,509 | 2,335 |
Traditional life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future gross premiums, undiscounted | 1,002 | 721 |
Expected future gross premiums, discounted | 687 | 500 |
Expected future benefits and expenses, undiscounted | 1,399 | 1,008 |
Expected future benefits and expenses, discounted | $ 672 | $ 547 |
Reserve for Future Policy Ben_6
Reserve for Future Policy Benefits and Contractholder Funds - Schedule of Key Assumptions used in Calculating the Reserve for Future Policy Benefits (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Accident and health insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted-average duration (in years) | 4 years 3 months 18 days | 4 years 1 month 6 days |
Interest accretion rate (discount rate at contract issuance) | 4.96% | 5.09% |
Current discount rate (upper-medium grade fixed income yield) | 5.02% | 4.58% |
Traditional life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted-average duration (in years) | 15 years 1 month 6 days | 14 years 1 month 6 days |
Interest accretion rate (discount rate at contract issuance) | 5.41% | 5.50% |
Current discount rate (upper-medium grade fixed income yield) | 5.35% | 5.03% |
Reserve for Future Policy Ben_7
Reserve for Future Policy Benefits and Contractholder Funds - Schedule of Contractholder Funds Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Contractholder funds activity | ||
Beginning balance | $ 888 | $ 879 |
Deposits | 34 | 33 |
Interest credited | 9 | 8 |
Benefits | (2) | (4) |
Surrenders and partial withdrawals | (6) | (5) |
Contract charges | (30) | (30) |
Other adjustments | (3) | (3) |
Ending balance | 890 | 878 |
Components of contractholder funds | $ 890 | $ 878 |
Weighted-average crediting rate | 4.20% | 4.27% |
Net amount at risk | $ 11,364 | $ 11,780 |
Cash surrender value | 731 | 722 |
Interest-sensitive life insurance | ||
Contractholder funds activity | ||
Ending balance | 846 | 830 |
Components of contractholder funds | 846 | 830 |
Fixed annuities | ||
Contractholder funds activity | ||
Ending balance | 44 | 48 |
Components of contractholder funds | $ 44 | $ 48 |
Reserve for Future Policy Ben_8
Reserve for Future Policy Benefits and Contractholder Funds - Schedule of Account Values by Comparison of Current Crediting Rate to Guaranteed Minimum Crediting Rate (Details) $ in Millions | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) |
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 890 | $ 878 |
Less than 3.00% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 0 | $ 0 |
Less than 3.00% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0300 | 0.0300 |
3.00% - 3.49% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 34 | $ 20 |
3.00% - 3.49% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0300 | 0.0300 |
3.00% - 3.49% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0349 | 0.0349 |
3.50% - 3.99% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 10 | $ 11 |
3.50% - 3.99% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0350 | 0.0350 |
3.50% - 3.99% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0399 | 0.0399 |
4.00% - 4.49% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 437 | $ 431 |
4.00% - 4.49% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0400 | 0.0400 |
4.00% - 4.49% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0449 | 0.0449 |
4.50% - 4.99% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 260 | $ 266 |
4.50% - 4.99% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0450 | 0.0450 |
4.50% - 4.99% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0499 | 0.0499 |
5.00% or greater | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 67 | $ 69 |
5.00% or greater | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0500 | 0.0500 |
Non-account balances | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 82 | $ 81 |
At guaranteed minimum | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 774 | 777 |
At guaranteed minimum | Less than 3.00% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 0 | 0 |
At guaranteed minimum | 3.00% - 3.49% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 0 | 0 |
At guaranteed minimum | 3.50% - 3.99% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 10 | 11 |
At guaranteed minimum | 4.00% - 4.49% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 437 | 431 |
At guaranteed minimum | 4.50% - 4.99% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 260 | 266 |
At guaranteed minimum | 5.00% or greater | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 67 | 69 |
At guaranteed minimum | Non-account balances | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | ||
1-50 basis points above | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 34 | 20 |
1-50 basis points above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0001 | |
1-50 basis points above | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance above guaranteed minimum crediting rate | 0.0050 | |
1-50 basis points above | Less than 3.00% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | $ 0 | 0 |
1-50 basis points above | 3.00% - 3.49% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 34 | 20 |
1-50 basis points above | 3.50% - 3.99% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 0 | 0 |
1-50 basis points above | 4.00% - 4.49% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 0 | 0 |
1-50 basis points above | 4.50% - 4.99% | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 0 | 0 |
1-50 basis points above | 5.00% or greater | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates | 0 | 0 |
1-50 basis points above | Non-account balances | ||
Policyholder Account Balance [Line Items] | ||
Account values with crediting rates |
Reinsurance and Indemnificati_3
Reinsurance and Indemnification - Schedule of Effects of Reinsurance Ceded and Indemnification Programs on Property and Casualty Premiums Earned and Accident and Health Insurance Premiums and Contract Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property and casualty insurance premiums | ||
Reinsurance | ||
Property and casualty insurance premiums earned | $ (557) | $ (446) |
Accident and health insurance premiums and contract charges | ||
Reinsurance | ||
Accident and health insurance premiums and contract charges | $ (10) | $ (9) |
Reinsurance and Indemnificati_4
Reinsurance and Indemnification - Schedule of Effects of Reinsurance Ceded and Indemnification Programs on Property and Casualty Insurance Claims and Claims Expense and Accident, Health and Other Policy Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property and casualty insurance claims and claims expense | ||
Reductions to costs and expenses due to reinsurance ceded amounts | ||
Ceded losses incurred | $ (232) | $ (320) |
Accident, health and other policy benefits | ||
Reductions to costs and expenses due to reinsurance ceded amounts | ||
Ceded losses incurred | $ (6) | $ (8) |
Reinsurance and Indemnificati_5
Reinsurance and Indemnification - Schedule of Reinsurance and Indemnification Recoverables (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Reinsurance | ||||
Reinsurance and indemnification recoverables, net | $ 8,726 | $ 8,809 | ||
Property and casualty | ||||
Reinsurance | ||||
Paid and due from reinsurers and indemnitors | 234 | 254 | ||
Unpaid losses estimated (including IBNR) | 8,333 | 8,396 | $ 9,111 | $ 9,176 |
Reinsurance and indemnification recoverables, net | 8,567 | 8,650 | ||
Accident and health insurance | ||||
Reinsurance | ||||
Reinsurance and indemnification recoverables, net | $ 159 | $ 159 |
Reinsurance and Indemnificati_6
Reinsurance and Indemnification - Schedule of Rollforward of Credit Loss Allowance for Reinsurance Recoverables (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property and casualty | ||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (62) | $ (62) |
(Increase) decrease in the provision for credit losses | (2) | 1 |
Write-offs | 0 | 0 |
Ending balance | (64) | (61) |
Accident and health insurance | ||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (3) | (3) |
(Increase) decrease in the provision for credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Ending balance | $ (3) | $ (3) |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Long Duration Contracts [Abstract] | ||
Beginning balance | $ 5,940 | |
Total | 5,946 | $ 5,471 |
Ending balance | 5,946 | 5,471 |
Accident and health insurance | ||
Long Duration Contracts [Abstract] | ||
Beginning balance | 511 | 502 |
Acquisition costs deferred | 43 | 23 |
Amortization charged to income | (28) | (16) |
Experience adjustment | (11) | (9) |
Total | 515 | 500 |
Short-duration contracts | 31 | 28 |
Ending balance | 515 | 500 |
Accident and health insurance | ||
Long Duration Contracts [Abstract] | ||
Beginning balance | 321 | 322 |
Acquisition costs deferred | 26 | 13 |
Amortization charged to income | (20) | (9) |
Experience adjustment | (10) | (9) |
Total | 317 | 317 |
Ending balance | 317 | 317 |
Traditional life | ||
Long Duration Contracts [Abstract] | ||
Beginning balance | 90 | 79 |
Acquisition costs deferred | 13 | 6 |
Amortization charged to income | (5) | (3) |
Experience adjustment | (1) | 0 |
Total | 97 | 82 |
Ending balance | 97 | 82 |
Interest-sensitive life insurance | ||
Long Duration Contracts [Abstract] | ||
Beginning balance | 100 | 101 |
Acquisition costs deferred | 4 | 4 |
Amortization charged to income | (3) | (4) |
Experience adjustment | 0 | 0 |
Total | 101 | 101 |
Ending balance | 101 | 101 |
Property and casualty | ||
Long Duration Contracts [Abstract] | ||
Property and casualty | $ 5,400 | $ 4,943 |
Company Restructuring - Narrati
Company Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | $ 10 | $ 27 |
Employee costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date for active programs | 105 | |
Exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date for active programs | $ 79 |
Company Restructuring - Schedul
Company Restructuring - Schedule of Restructuring Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | $ 41 |
Expense incurred | 9 |
Adjustments to liability | 1 |
Payments and non-cash charges | (17) |
Restructuring liability, ending balance | 34 |
Employee costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | 40 |
Expense incurred | 4 |
Adjustments to liability | 1 |
Payments and non-cash charges | (12) |
Restructuring liability, ending balance | 33 |
Exit costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | 1 |
Expense incurred | 5 |
Adjustments to liability | 0 |
Payments and non-cash charges | (5) |
Restructuring liability, ending balance | $ 1 |
Guarantees and Contingent Lia_2
Guarantees and Contingent Liabilities (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) claim | Nov. 11, 2016 officer | |
The Allstate Corp. Securities Litigation | ||
Guarantor Obligations [Line Items] | ||
Number of officers | officer | 2 | |
Holland Hewitt v. Allstate Life Insurance Company | ||
Guarantor Obligations [Line Items] | ||
Number of putative class actions | claim | 2 | |
Minimum | ||
Guarantor Obligations [Line Items] | ||
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued | $ 0 | |
Maximum | ||
Guarantor Obligations [Line Items] | ||
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued | $ 87,000,000 |
Benefit Plans - Schedule of Com
Benefit Plans - Schedule of Components of Net Cost (Benefit) for Pension and Other Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Costs and expenses | $ 16 | $ 13 |
Remeasurement (gains) losses | (2) | (53) |
Total net cost (benefit) | 14 | (40) |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 33 | 33 |
Interest cost | 58 | 60 |
Expected return on plan assets | (77) | (77) |
Amortization of prior service credit | 0 | 0 |
Costs and expenses | 14 | 16 |
Remeasurement of projected benefit obligation | (25) | 123 |
Remeasurement of plan assets | 25 | (180) |
Remeasurement (gains) losses | 0 | (57) |
Total net cost (benefit) | 14 | (41) |
Postretirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 2 | 3 |
Amortization of prior service credit | 0 | (6) |
Costs and expenses | 2 | (3) |
Remeasurement of projected benefit obligation | (2) | 4 |
Remeasurement of plan assets | 0 | 0 |
Remeasurement (gains) losses | (2) | 4 |
Total net cost (benefit) | $ 0 | $ 1 |
Benefit Plans - Schedule of Pen
Benefit Plans - Schedule of Pension and Postretirement Benefits Remeasurement Gains and Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Discount rate | $ (41) | $ 124 |
Other assumptions | 14 | 3 |
Remeasurement of plan assets (gains) losses | 25 | (180) |
Remeasurement (gains) losses | $ (2) | $ (53) |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.45% | 5.35% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | ||
Transfer from investments | $ 34 | $ 36 |
Non-cash investing activities, right-of-use asset, property and equipment obtained | 18 | |
Noncash investing activities, right-of-use asset obtained in exchange for operating lease liability | 17 | |
Non-cash investing activities, debt assumed | 51 | |
Non-cash financing activities related to the issuance of shares for vested restricted stock units | 26 | 35 |
Operating lease, payments | 30 | 33 |
Right-of-use asset obtained in exchange for operating lease liability | $ 10 | $ 4 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Activities Resulting from Management of Proceeds (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net change in proceeds managed | ||
Net change in fixed income securities | $ (31) | $ 111 |
Net change in short-term investments | (127) | 93 |
Operating cash flow (used) provided | (158) | 204 |
Net change in liabilities | ||
Liabilities for collateral, beginning of period | (1,891) | (2,011) |
Liabilities for collateral, end of period | (2,049) | (1,807) |
Operating cash flow provided (used) | $ 158 | $ (204) |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pre-tax | ||
Other comprehensive (loss) income | $ (233) | $ 913 |
Tax | ||
Other comprehensive (loss) income | 50 | (194) |
After-tax | ||
Other comprehensive (loss) income, after-tax | (183) | 719 |
Unrealized net capital gains and losses | ||
Pre-tax | ||
Unrealized net holding gains and losses arising during the period, net of related offsets | (375) | 729 |
Less: reclassification adjustment of realized capital gains and losses | (101) | (138) |
Other comprehensive (loss) income | (274) | 867 |
Tax | ||
Unrealized net holding gains and losses arising during the period, net of related offsets | 80 | (156) |
Less: reclassification adjustment of realized capital gains and losses | 21 | 29 |
Other comprehensive (loss) income | 59 | (185) |
After-tax | ||
Unrealized net holding gains and losses arising during the period, net of related offsets | (295) | 573 |
Less: reclassification adjustment of realized capital gains and losses | (80) | (109) |
Other comprehensive (loss) income, after-tax | (215) | 682 |
Unrealized foreign currency translation adjustments | ||
Pre-tax | ||
Other comprehensive (loss) income | 10 | 63 |
Tax | ||
Other comprehensive (loss) income | (2) | (13) |
After-tax | ||
Other comprehensive (loss) income, after-tax | 8 | 50 |
Unamortized pension and other postretirement prior service credit | ||
Pre-tax | ||
Other comprehensive (loss) income | (1) | (6) |
Tax | ||
Other comprehensive (loss) income | 0 | 2 |
After-tax | ||
Other comprehensive (loss) income, after-tax | (1) | (4) |
Discount rate for reserve for future policy benefits | ||
Pre-tax | ||
Other comprehensive (loss) income | 32 | (11) |
Tax | ||
Other comprehensive (loss) income | (7) | 2 |
After-tax | ||
Other comprehensive (loss) income, after-tax | $ 25 | $ (9) |