XML 39 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Reporting Segments | 12 Months Ended
--- | ---
Dec. 31, 2017
Segment Reporting [Abstract] |
Reporting Segments |
Note 4 | Reportable Segments
Beginning in fourth quarter 2017, the Company’s chief operating decision maker reviews financial performance and makes decisions about the allocation of resources based on the following seven reportable segments: Allstate Protection, Discontinued Lines and Coverages, Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other. These segments are described below and align with the Company’s key product and service offerings, including the acquisition of SquareTrade and the strategic focus and expansion of Arity and other service businesses. Allstate Protection principally offers private passenger auto and homeowners insurance in the United States and Canada, with earned premiums accounting for 82% of Allstate’s 2017 consolidated revenues. Allstate Protection is authorized to sell certain property and casualty products in all 50 states, the District of Columbia, Puerto Rico and Canada. For 2017, the top U.S. geographic locations for premiums earned by the Allstate Protection segment were Texas, California, New York and Florida. No other jurisdiction accounted for more than 5% of premium earned for Allstate Protection. Revenues from external customers generated outside the United States were $1.11 billion, $1.06 billion and $1.03 billion in 2017, 2016 and 2015, respectively. Discontinued Lines and Coverages includes property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other discontinued lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off. Service Businesses comprise SquareTrade, Arity, Allstate Roadside Services and Allstate Dealer Services and offer consumer product protection plans, device and mobile data collection services and analytic solutions, roadside assistance, and finance and insurance products (including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel and paintless dent repair protection). The Service Businesses primarily operate in the U.S., with certain businesses offering services in Europe, Canada and Puerto Rico. Revenues from external customers generated outside the United States relate to consumer product protection plans sold primarily in the European Union and were $35 million in 2017. Allstate Life offers traditional, interest-sensitive and variable life insurance products. Allstate Life is authorized to sell life insurance products in all 50 states, the District of Columbia and Puerto Rico. For 2017, the top geographic locations for statutory direct life insurance premiums were New York, California, Texas, Florida and Illinois. No other jurisdiction accounted for more than 5% of statutory direct life insurance premiums. Allstate Benefits offers voluntary benefits products, including life, accident, critical illness, short-term disability and other health products. Allstate Benefits is authorized to sell its products in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam and Canada. For 2017, the top geographic locations for statutory direct accident and health insurance premiums were Florida, Texas, North Carolina and Georgia. No other jurisdiction accounted for more than 5% of statutory direct accident and health insurance premiums. Revenues from external customers generated outside the United States relate to voluntary accident and health insurance sold in Canada and were not material. Allstate Annuities consists of deferred fixed annuities and immediate annuities (including standard and sub-standard structured settlements). This segment is in run-off. The Company also previously offered institutional products consisting of funding agreements sold to unaffiliated trusts that used them to back medium-term notes. There were no institutional products outstanding as of December 31, 2017 or 2016. Corporate and Other comprises holding company activities and certain non-insurance operations. Allstate Protection and Discontinued Lines and Coverages segments comprise Property-Liability. The Company does not allocate investment income, realized capital gains and losses, or assets to the Allstate Protection and Discontinued Lines and Coverages segments. Management reviews assets at the Property-Liability, Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other levels for decision-making purposes. The accounting policies of the reportable segments are the same as those described in Note 2. The effects of intersegment transactions are eliminated in the segment results, except for services provided by the Service Businesses to Allstate Protection that are not eliminated as management considers those transactions in assessing the results of the respective 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 Discontinued Lines and Coverages segments and adjusted net income for the Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other segments. A reconciliation of these measures to net income applicable to common shareholders is provided below. Underwriting income is calculated as premiums earned, less claims and claims expenses (“losses”), amortization of DAC, operating costs and expenses, and restructuring and related charges as determined using GAAP. Adjusted net income is net income applicable to common shareholders, excluding:
• Realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income
• Valuation changes on embedded derivatives not hedged, after-tax
• Amortization of DAC and DSI, to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives not hedged, after-tax
• Business combination expenses and the amortization of purchased intangible assets, after-tax
• Gain (loss) on disposition of operations, after-tax
• 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
Reportable segments revenue information
|  | For the years ended December 31,
($ in millions) |  | 2017 |  | 2016 |  | 2015
Property-Liability |  |  |  |  |  |
Insurance premiums |  |  |  |  |  |
Auto |  | $ | 21,878 |  |  | $ | 21,264 |  |  | $ | 20,410 |
Homeowners |  | 7,310 |  |  | 7,257 |  |  | 7,136 |
Other personal lines |  | 1,750 |  |  | 1,700 |  |  | 1,692 |
Commercial lines |  | 495 |  |  | 506 |  |  | 510 |
Allstate Protection |  | 31,433 |  |  | 30,727 |  |  | 29,748 |
Discontinued Lines and Coverages |  | — |  |  | — |  |  | — |
Total property-liability insurance premiums |  | 31,433 |  |  | 30,727 |  |  | 29,748 |
Net investment income |  | 1,478 |  |  | 1,253 |  |  | 1,226 |
Realized capital gains and losses |  | 401 |  |  | (6 | ) |  | (237 | )
Total Property-Liability |  | 33,312 |  |  | 31,974 |  |  | 30,737 |
Service Businesses |  |  |  |  |  |
Consumer product protection plans |  | 295 |  |  | — |  |  | — |
Roadside assistance |  | 268 |  |  | 310 |  |  | 340 |
Finance and insurance products |  | 304 |  |  | 270 |  |  | 221 |
Intersegment premiums and service fees (1) |  | 110 |  |  | 105 |  |  | 42 |
Net investment income |  | 16 |  |  | 13 |  |  | 11 |
Total Service Businesses |  | 993 |  |  | 698 |  |  | 614 |
Allstate Life |  |  |  |  |  |
Traditional life insurance premiums |  | 568 |  |  | 533 |  |  | 505 |
Accident and health insurance premiums |  | 2 |  |  | 2 |  |  | 2 |
Interest-sensitive life insurance contract charges |  | 710 |  |  | 715 |  |  | 716 |
Net investment income |  | 489 |  |  | 482 |  |  | 490 |
Realized capital gains and losses |  | 5 |  |  | (38 | ) |  | 2 |
Total Allstate Life |  | 1,774 |  |  | 1,694 |  |  | 1,715 |
Allstate Benefits |  |  |  |  |  |
Traditional life insurance premiums |  | 42 |  |  | 40 |  |  | 37 |
Accident and health insurance premiums |  | 928 |  |  | 857 |  |  | 778 |
Interest-sensitive life insurance contract charges |  | 114 |  |  | 114 |  |  | 106 |
Net investment income |  | 72 |  |  | 71 |  |  | 71 |
Realized capital gains and losses |  | 1 |  |  | (5 | ) |  | 1 |
Total Allstate Benefits |  | 1,157 |  |  | 1,077 |  |  | 993 |
Allstate Annuities |  |  |  |  |  |
Fixed annuities contract charges |  | 14 |  |  | 14 |  |  | 14 |
Net investment income |  | 1,305 |  |  | 1,181 |  |  | 1,323 |
Realized capital gains and losses |  | 44 |  |  | (38 | ) |  | 264 |
Total Allstate Annuities |  | 1,363 |  |  | 1,157 |  |  | 1,601 |
Corporate and Other |  |  |  |  |  |
Net investment income |  | 41 |  |  | 42 |  |  | 35 |
Realized capital gains and losses |  | (6 | ) |  | (3 | ) |  | — |
Total Corporate and Other |  | 35 |  |  | 39 |  |  | 35 |
Intersegment eliminations (1) |  | (110 | ) |  | (105 | ) |  | (42 | )
Consolidated revenues |  | $ | 38,524 |  |  | $ | 36,534 |  |  | $ | 35,653 |
(1) Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside Services and are eliminated in the consolidated financial statements.
Reportable segments financial performance
|  | For the years ended December 31,
($ in millions) |  | 2017 |  | 2016 |  | 2015
Property-Liability |  |  |  |  |  |
Allstate Protection |  | $ | 2,111 |  |  | $ | 1,327 |  |  | $ | 1,621 |
Discontinued Lines and Coverages |  | (99 | ) |  | (107 | ) |  | (55 | )
Total underwriting income |  | 2,012 |  |  | 1,220 |  |  | 1,566 |
Net investment income |  | 1,478 |  |  | 1,253 |  |  | 1,226 |
Income tax expense on operations |  | (1,119 | ) |  | (812 | ) |  | (922 | )
Realized capital gains and losses, after-tax |  | 272 |  |  | — |  |  | (154 | )
Gain on disposition of operations, after-tax |  | 9 |  |  | — |  |  | — |
Change in accounting for investments in qualified affordable housing projects |  | — |  |  | — |  |  | (28 | )
Tax Legislation expense |  | (65 | ) |  | — |  |  | — |
Property-Liability net income applicable to common shareholders |  | 2,587 |  |  | 1,661 |  |  | 1,688 |
Service Businesses |  |  |  |  |  |
Adjusted net (loss) income |  | (59 | ) |  | 3 |  |  | 2 |
Amortization of purchased intangible assets, after-tax |  | (60 | ) |  | — |  |  | — |
Tax Legislation benefit |  | 134 |  |  | — |  |  | — |
Service Businesses net income applicable to common shareholders |  | 15 |  |  | 3 |  |  | 2 |
Allstate Life |  |  |  |  |  |
Adjusted net income |  | 253 |  |  | 247 |  |  | 239 |
Realized capital gains and losses, after-tax |  | 2 |  |  | (24 | ) |  | 1 |
DAC and DSI amortization related to realized capital gains and losses, after-tax |  | (10 | ) |  | (4 | ) |  | (4 | )
Loss on disposition of operations, after-tax |  | — |  |  | — |  |  | (1 | )
Change in accounting for investments in qualified affordable housing projects |  | — |  |  | — |  |  | (6 | )
Tax Legislation benefit |  | 332 |  |  | — |  |  | — |
Allstate Life net income applicable to common shareholders |  | 577 |  |  | 219 |  |  | 229 |
Allstate Benefits |  |  |  |  |  |
Adjusted net income |  | 95 |  |  | 100 |  |  | 104 |
Realized capital gains and losses, after-tax |  | — |  |  | (4 | ) |  | — |
Tax Legislation benefit |  | 51 |  |  | — |  |  | — |
Allstate Benefits net income applicable to common shareholders |  | 146 |  |  | 96 |  |  | 104 |
Allstate Annuities |  |  |  |  |  |
Adjusted net income |  | 204 |  |  | 101 |  |  | 166 |
Realized capital gains and losses, after-tax |  | 28 |  |  | (26 | ) |  | 172 |
Valuation changes on embedded derivatives not hedged, after-tax |  | — |  |  | (2 | ) |  | (1 | )
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax |  | — |  |  | — |  |  | 1 |
Gain on disposition of operations, after-tax |  | 4 |  |  | 3 |  |  | 3 |
Change in accounting for investments in qualified affordable housing projects |  | — |  |  | — |  |  | (11 | )
Tax Legislation benefit |  | 182 |  |  | — |  |  | — |
Allstate Annuities net income applicable to common shareholders |  | 418 |  |  | 76 |  |  | 330 |
Corporate and Other |  |  |  |  |  |
Adjusted net loss |  | (399 | ) |  | (292 | ) |  | (298 | )
Realized capital gains and losses, after-tax |  | (4 | ) |  | (2 | ) |  | — |
Goodwill impairment |  | (125 | ) |  | — |  |  | — |
Business combination expenses, after-tax |  | (14 | ) |  | — |  |  | — |
Tax Legislation expense |  | (128 | ) |  | — |  |  | — |
Corporate and Other net loss applicable to common shareholders |  | (670 | ) |  | (294 | ) |  | (298 | )
Consolidated net income applicable to common shareholders |  | $ | 3,073 |  |  | $ | 1,761 |  |  | $ | 2,055 |
Additional significant financial performance data |  |  |  |  |  |
|  | For the years ended December 31,
($ in millions) |  | 2017 |  | 2016 |  | 2015
Amortization of DAC |  |  |  |  |  |
Property-Liability |  | $ | 4,205 |  |  | $ | 4,053 |  |  | $ | 3,933 |
Service Businesses |  | 296 |  |  | 214 |  |  | 169 |
Allstate Life |  | 134 |  |  | 131 |  |  | 133 |
Allstate Benefits |  | 142 |  |  | 145 |  |  | 124 |
Allstate Annuities |  | 7 |  |  | 7 |  |  | 5 |
Consolidated |  | $ | 4,784 |  |  | $ | 4,550 |  |  | $ | 4,364 |
​ |  | ​ |  | ​ |  | ​
Income tax expense (benefit) |  |  |  |  |  |
Property-Liability |  | $ | 1,318 |  |  | $ | 806 |  |  | $ | 867 |
Service Businesses |  | (193 | ) |  | — |  |  | 2 |
Allstate Life |  | (224 | ) |  | 91 |  |  | 108 |
Allstate Benefits |  | 1 |  |  | 51 |  |  | 55 |
Allstate Annuities |  | (58 | ) |  | 36 |  |  | 188 |
Corporate and Other |  | (42 | ) |  | (107 | ) |  | (109 | )
Consolidated |  | $ | 802 |  |  | $ | 877 |  |  | $ | 1,111 |
Impacts of Tax Legislation |  |  |  |  |  |
|  | For the year ended December 31, 2017
($ in millions) |  | Income tax expense (benefit) before Tax Legislation |  | Tax Legislation expense (benefit) |  | Income tax expense (benefit) after Tax Legislation
Income tax expense (benefit) |  |  |  |  |  |
Property-Liability |  | $ | 1,253 |  |  | $ | 65 |  |  | $ | 1,318 |
Service Businesses |  | (59 | ) |  | (134 | ) |  | (193 | )
Allstate Life |  | 108 |  |  | (332 | ) |  | (224 | )
Allstate Benefits |  | 52 |  |  | (51 | ) |  | 1 |
Allstate Annuities |  | 124 |  |  | (182 | ) |  | (58 | )
Corporate and Other |  | (170 | ) |  | 128 |  |  | (42 | )
Consolidated |  | $ | 1,308 |  |  | $ | (506 | ) |  | $ | 802 |
Interest expense is primarily incurred in the Corporate and Other segment. Capital expenditures for long-lived assets are generally made in Property-Liability as the Company does not allocate assets to the Allstate Protection and Discontinued Lines and Coverages segments. A portion of these long-lived assets are used by entities included in the Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities and Corporate and Other segments and, accordingly, are charged to expenses in proportion to their use.
Reportable segment total assets and investments as of December 31, 2017 (1) |  |
($ in millions) |  |
Assets (2) |  |
Property-Liability |  | $ | 60,197 |
Service Businesses |  | 4,531 |
Allstate Life |  | 14,107 |
Allstate Benefits |  | 2,766 |
Allstate Annuities |  | 28,836 |
Corporate and Other |  | 1,985 |
Consolidated |  | $ | 112,422 |
​ |  | ​
Investments (3) |  |
Property-Liability |  | $ | 43,183 |
Service Businesses |  | 954 |
Allstate Life |  | 11,210 |
Allstate Benefits |  | 1,776 |
Allstate Annuities |  | 23,722 |
Corporate and Other |  | 1,958 |
Consolidated |  | $ | 82,803 |
(1) | The balances above reflect the elimination of related party investments between segments.
(2) | Due to the changes in reportable segments, prior year total assets are not available for the new segments as it was impracticable to calculate. Total assets for previously reported Property-Liability, Allstate Financial, and Corporate and Other segments were $60.39 billion, $45.95 billion and $2.27 billion as of December 31, 2016, respectively, and $55.67 billion, $46.34 billion and $2.64 billion as of December 31, 2015, respectively.
(3) | Due to the changes in reportable segments, prior year investments balances are not available for the new segments as it was impracticable to calculate. Total investments for previously reported Property-Liability, Allstate Financial, and Corporate and Other segments were $42.72 billion, $36.84 billion and $2.24 billion as of December 31, 2016, respectively, and $38.48 billion, $36.79 billion and $2.49 billion as of December 31, 2015, respectively.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration