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v3.19.3.a.u2

Reserve for Property-Liability Insurance Claims and Claims Expense (Tables) | 12 Months Ended
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Dec. 31, 2019
Reserve for Property-Liability Insurance Claims and Claims Expense |
Activity in the reserve for property-liability insurance claims and claims expense |
Rollforward of reserve for property and casualty insurance claims and claims expense
($ in millions) |  | 2019 |  | 2018 |  | 2017
Balance as of January 1 |  | $ | 27,423 |  |  | $ | 26,325 |  |  | $ | 25,250 |
Less recoverables (1) |  | (7,155 | ) |  | (6,471 | ) |  | (6,184 | )
Net balance as of January 1 |  | 20,268 |  |  | 19,854 |  |  | 19,066 |
SquareTrade acquisition as of January 3, 2017 |  | — |  |  | — |  |  | 17 |
Incurred claims and claims expense related to: |  |  |  |  |  |
Current year |  | 24,106 |  |  | 23,033 |  |  | 22,350 |
Prior years |  | (130 | ) |  | (255 | ) |  | (503 | )
Total incurred |  | 23,976 |  |  | 22,778 |  |  | 21,847 |
Claims and claims expense paid related to: |  |  |  |  |  |
Current year |  | (15,160 | ) |  | (14,877 | ) |  | (14,112 | )
Prior years |  | (8,284 | ) |  | (7,487 | ) |  | (6,964 | )
Total paid |  | (23,444 | ) |  | (22,364 | ) |  | (21,076 | )
Net balance as of December 31 |  | 20,800 |  |  | 20,268 |  |  | 19,854 |
Plus recoverables |  | 6,912 |  |  | 7,155 |  |  | 6,471 |
Balance as of December 31 |  | $ | 27,712 |  |  | $ | 27,423 |  |  | $ | 26,325 |
(1) Recoverables comprises reinsurance and indemnification recoverables. See Note 10 for further details.
Reconciliation of total claims and claims expense incurred and paid by coverage |  | December 31, 2019
($ in millions) |  | Incurred |  | Paid
Allstate Protection |  |  |  |
Auto insurance - liability coverage |  | $ | 9,142 |  |  | $ | (8,419 | )
Auto insurance - physical damage coverage |  | 5,576 |  |  | (5,570 | )
Homeowners insurance |  | 4,625 |  |  | (4,616 | )
Total auto and homeowners insurance |  | 19,343 |  |  | (18,605 | )
Other personal lines |  | 1,024 |  |  | (1,059 | )
Commercial lines |  | 648 |  |  | (404 | )
Service Businesses |  | 297 |  |  | (311 | )
Discontinued Lines and Coverages |  | 91 |  |  | (121 | )
Unallocated loss adjustment expenses (“ULAE”) |  | 2,687 |  |  | (2,585 | )
Claims incurred and paid from before 2015 |  | (97 | ) |  | (444 | )
Other |  | (17 | ) |  | 85 |
Total |  | $ | 23,976 |  |  | $ | (23,444 | )
Incurred and paid claims and claims expense | The information about incurred and paid claims development for the 2015 to 2019 years, and the average annual percentage payout of incurred claims by age as of December 31, 2019, is presented as required supplementary information. Auto insurance – liability coverage
($ in millions, except number of reported claims) |  | Incurred claims and allocated claim adjustment expenses, net of recoverables |  |  |  | IBNR reserves plus expected development on reported claims |  | Cumulative number of reported claims
|  | For the years ended December 31, |  | Prior year reserve reestimates |  | As of December 31, 2019
|  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  |
Accident year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  |
2015 |  | $ | 8,763 |  |  | $ | 8,733 |  |  | $ | 8,677 |  |  | $ | 8,617 |  |  | $ | 8,578 |  |  | $ | (39 | ) |  | $ | 519 |  |  | 2,383,853 |
2016 |  | — |  |  | 9,030 |  |  | 8,833 |  |  | 8,732 |  |  | 8,683 |  |  | (49 | ) |  | 988 |  |  | 2,399,890 |
2017 |  | — |  |  | — |  |  | 8,457 |  |  | 8,389 |  |  | 8,305 |  |  | (84 | ) |  | 1,777 |  |  | 2,214,254 |
2018 |  | — |  |  | — |  |  | — |  |  | 8,727 |  |  | 8,708 |  |  | (19 | ) |  | 3,093 |  |  | 2,169,753 |
2019 |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,333 |  |  |  |  | 5,838 |  |  | 2,108,919 |
|  |  |  |  |  |  |  | Total |  |  | $ | 43,607 |  |  | $ | (191 | ) |  |  |  |
Reconciliation to total prior year reserve reestimates recognized by line |  |  |  |  |  |
Prior year reserve reestimates for pre-2015 accident years |  | (56 | ) |  |  |  |
Prior year reserve reestimates for ULAE |  | 14 |  |  |  |  |
Other |  | (1 | ) |  |  |  |
Total prior year reserve reestimates |  | $ | (234 | ) |  |  |  |
|  | Cumulative paid claims and allocated claims adjustment expenses, net of recoverables |  |  |  |  |  |
|  | For the years ended December 31, |  |  |  |  |  |
|  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  |  |  |  |  |
Accident year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  |  |  |  |  |
2015 |  | $ | 3,524 |  |  | $ | 5,837 |  |  | $ | 6,883 |  |  | $ | 7,565 |  |  | $ | 8,059 |  |  |  |  |  |  |
2016 |  | — |  |  | 3,485 |  |  | 5,768 |  |  | 6,849 |  |  | 7,695 |  |  |  |  |  |  |
2017 |  | — |  |  | — |  |  | 3,149 |  |  | 5,330 |  |  | 6,528 |  |  |  |  |  |  |
2018 |  | — |  |  | — |  |  | — |  |  | 3,229 |  |  | 5,615 |  |  |  |  |  |  |
2019 |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,495 |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Total |  |  | $ | 31,392 |  |  |  |  |  |  |
All outstanding liabilities before 2015, net of recoverables |  | 1,274 |  |  |  |  |  |  |
Liabilities for claims and claim adjustment expenses, net of recoverables |  | $ | 13,489 |  |  |  |  |  |  |
Homeowners insurance
($ in millions, except number of reported claims) |  | Incurred claims and allocated claim adjustment expenses, net of recoverables |  |  |  | IBNR reserves plus expected development on reported claims |  | Cumulative number of reported claims
|  | For the years ended December 31, |  | Prior year reserve reestimates |  | As of December 31, 2019
|  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  |
Accident year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  |
2015 |  | $ | 3,558 |  |  | $ | 3,611 |  |  | $ | 3,553 |  |  | $ | 3,537 |  |  | $ | 3,520 |  |  | $ | (17 | ) |  | $ | 36 |  |  | 721,328 |
2016 |  | — |  |  | 3,959 |  |  | 3,993 |  |  | 3,955 |  |  | 3,951 |  |  | (4 | ) |  | 77 |  |  | 813,728 |
2017 |  | — |  |  | — |  |  | 4,475 |  |  | 4,617 |  |  | 4,612 |  |  | (5 | ) |  | 177 |  |  | 907,218 |
2018 |  | — |  |  | — |  |  | — |  |  | 4,747 |  |  | 4,851 |  |  | 104 |  |  | 340 |  |  | 807,012 |
2019 |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,547 |  |  |  |  | 1,233 |  |  | 721,434 |
|  |  |  |  |  |  |  | Total |  |  | $ | 21,481 |  |  | $ | 78 |  |  |  |  |
Reconciliation to total prior year reserve reestimates recognized by line |  |  |  |  |  |
Prior year reserve reestimates for pre-2015 accident years |  | (36 | ) |  |  |  |
Prior year reserve reestimates for ULAE |  | 23 |  |  |  |  |
Other |  | — |  |  |  |  |
Total prior year reserve reestimates |  | $ | 65 |  |  |  |  |
|  | Cumulative paid claims and allocated claims adjustment expenses, net of recoverables |  |  |  |  |  |
|  | For the years ended December 31, |  |  |  |  |  |
|  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  |  |  |  |  |
Accident year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  |  |  |  |  |
2015 |  | $ | 2,586 |  |  | $ | 3,296 |  |  | $ | 3,399 |  |  | $ | 3,458 |  |  | $ | 3,484 |  |  |  |  |  |  |
2016 |  | — |  |  | 2,947 |  |  | 3,678 |  |  | 3,809 |  |  | 3,874 |  |  |  |  |  |  |
2017 |  | — |  |  | — |  |  | 3,227 |  |  | 4,246 |  |  | 4,435 |  |  |  |  |  |  |
2018 |  | — |  |  | — |  |  | — |  |  | 3,489 |  |  | 4,511 |  |  |  |  |  |  |
2019 |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,314 |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Total |  |  | $ | 19,618 |  |  |  |  |  |  |
All outstanding liabilities before 2015, net of recoverables |  | 126 |  |  |  |  |  |  |
Liabilities for claims and claim adjustment expenses, net of recoverables |  | $ | 1,989 |  |  |  |  |  |  |
Auto insurance – physical damage coverage
($ in millions, except number of reported claims) |  | Incurred claims and allocated claim adjustment expenses, net of recoverables |  |  |  | IBNR reserves plus expected development on reported claims |  | Cumulative number of reported claims
|  | For the years ended December 31, |  | Prior year reserve reestimates |  | As of December 31, 2019
|  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  |
Accident year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  |
2015 |  | $ | 4,653 |  |  | $ | 4,681 |  |  | $ | 4,669 |  |  | $ | 4,660 |  |  | $ | 4,656 |  |  | $ | (4 | ) |  | $ | 2 |  |  | 4,390,288 |
2016 |  | — |  |  | 5,125 |  |  | 5,052 |  |  | 5,025 |  |  | 5,020 |  |  | (5 | ) |  | 5 |  |  | 4,431,735 |
2017 |  | — |  |  | — |  |  | 5,119 |  |  | 5,037 |  |  | 5,025 |  |  | (12 | ) |  | (2 | ) |  | 4,236,640 |
2018 |  | — |  |  | — |  |  | — |  |  | 5,216 |  |  | 5,154 |  |  | (62 | ) |  | 17 |  |  | 4,306,335 |
2019 |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,659 |  |  |  |  | 244 |  |  | 4,312,306 |
|  |  |  |  |  |  |  | Total |  |  | $ | 25,514 |  |  | $ | (83 | ) |  |  |  |
Reconciliation to total prior year reserve reestimates recognized by line |  |  |  |  |  |
Prior year reserve reestimates for pre-2015 accident years |  | (4 | ) |  |  |  |
Prior year reserve reestimates for ULAE |  | (2 | ) |  |  |  |
Other |  | — |  |  |  |  |
Total prior year reserve reestimates |  | $ | (89 | ) |  |  |  |
|  | Cumulative paid claims and allocated claims adjustment expenses, net of recoverables |  |  |  |  |  |
|  | For the years ended December 31, |  |  |  |  |  |
|  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  |  |  |  |  |
Accident year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  |  |  |  |  |
2015 |  | $ | 4,507 |  |  | $ | 4,672 |  |  | $ | 4,658 |  |  | $ | 4,655 |  |  | $ | 4,654 |  |  |  |  |  |  |
2016 |  | — |  |  | 4,887 |  |  | 5,031 |  |  | 5,019 |  |  | 5,016 |  |  |  |  |  |  |
2017 |  | — |  |  | — |  |  | 4,845 |  |  | 5,036 |  |  | 5,027 |  |  |  |  |  |  |
2018 |  | — |  |  | — |  |  | — |  |  | 4,968 |  |  | 5,137 |  |  |  |  |  |  |
2019 |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,414 |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Total |  |  | $ | 25,248 |  |  |  |  |  |  |
All outstanding liabilities before 2015, net of recoverables |  | 7 |  |  |  |  |  |  |
Liabilities for claims and claim adjustment expenses, net of recoverables |  | $ | 273 |  |  |  |  |  |  |
Average annual percentage payout of incurred claims by age, net of reinsurance |
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
|  | 1 year |  | 2 years |  | 3 years |  | 4 years |  | 5 years
Homeowners insurance |  | 74.5 | % |  | 18.9 | % |  | 3.1 | % |  | 1.4 | % |  | 0.7 | %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
|  | 1 year |  | 2 years |  | 3 years |  | 4 years |  | 5 years
Auto insurance – liability coverage |  | 40.0 | % |  | 27.2 | % |  | 12.9 | % |  | 8.2 | % |  | 4.9 | %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
|  | 1 year |  | 2 years |  | 3 years |  | 4 years |  | 5 years
Auto insurance – p hysical damage coverage |  | 97.0 | % |  | 3.0 | % |  | (0.2 | )% |  | — | % |  | — | %
Reconciliation of the net incurred claims and claims expense development |
Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions) |  | As of December 31, 2019
Net outstanding liabilities |  |
Allstate Protection |  |
Auto insurance - liability coverage |  | $ | 13,489 |
Auto insurance - physical damage coverage |  | 273 |
Homeowners insurance |  | 1,989 |
Other personal lines |  | 1,326 |
Commercial lines |  | 1,010 |
Service Businesses |  | 36 |
Discontinued Lines and Coverages (1) |  | 1,286 |
ULAE |  | 1,391 |
Net reserve for property and casualty insurance claims and claims expense |  | 20,800 |
Recoverables |  |
Allstate Protection |  |
Auto insurance - liability coverage |  | 5,891 |
Auto insurance - physical damage coverage |  | 3 |
Homeowners insurance |  | 214 |
Other personal lines |  | 160 |
Commercial lines |  | 130 |
Service Businesses |  | 13 |
Discontinued Lines and Coverages |  | 452 |
ULAE |  | 49 |
Total recoverables |  | 6,912 |
Gross reserve for property and casualty insurance claims and claims expense |  | $ | 27,712 |
(1) Discontinued Lines and Coverages includes business in run-off with most of the claims related to accident years more than 30 years ago. IBNR reserves represent $660 million of the total reserves as of December 31, 2019.

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- Definition Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 + Details
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- Definition Tabular disclosure of undiscounted information about claims development by accident year for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671311-158438 + Details
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- Definition Tabular disclosure for the reconciliation of claims development to the liability for unpaid claims and claim adjustment expense for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671315-158438 + Details
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- Definition Tabular disclosure of average annual percentage payout of incurred claims by age, after reinsurance, for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4G -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671329-158438 + Details
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