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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2019
Accounting Policies [Abstract] |
Schedule of Goodwill by reporting unit | The Company’s goodwill reporting units are equivalent to its reportable segments, Allstate Protection, Service Businesses, Allstate Life and Allstate Benefits to which goodwill has been assigned.
Goodwill by reporting unit
|  | As of December 31,
($ in millions) |  | 2019 |  | 2018
Allstate Protection |  | $ | 810 |  |  | $ | 810 |
Service Businesses |  | 1,464 |  |  | 1,449 |
Allstate Life |  | 175 |  |  | 175 |
Allstate Benefits |  | 96 |  |  | 96 |
Total |  | $ | 2,545 |  |  | $ | 2,530 |
Future amortization expense |
Amortization expense of intangible assets for the next five years and thereafter
($ in millions) |  |
2020 |  | $ | 109 |
2021 |  | 91 |
2022 |  | 74 |
2023 |  | 60 |
2024 |  | 45 |
Thereafter |  | 64 |
Total amortization |  | $ | 443 |
Schedule of indefinite-lived intangible assets |
Intangible assets by type
|  | As of December 31,
($ in millions) |  | 2019 |  | 2018
Customers relationships |  | $ | 419 |  |  | $ | 530 |
Trade names and licenses |  | 38 |  |  | 143 |
Technology and other |  | 24 |  |  | 40 |
Total |  | $ | 481 |  |  | $ | 713 |
Schedule of finite-lived intangible assets |
Intangible assets by type
|  | As of December 31,
($ in millions) |  | 2019 |  | 2018
Customers relationships |  | $ | 419 |  |  | $ | 530 |
Trade names and licenses |  | 38 |  |  | 143 |
Technology and other |  | 24 |  |  | 40 |
Total |  | $ | 481 |  |  | $ | 713 |
Computation of basic and diluted earnings per common share |
Computation of basic and diluted earnings per common share
|  | For the years ended December 31,
($ in millions, except per share data) |  | 2019 |  | 2018 |  | 2017
Numerator: |  |  |  |  |  |
Net income |  | $ | 4,847 |  |  | $ | 2,160 |  |  | $ | 3,554 |
Less: Preferred stock dividends |  | 169 |  |  | 148 |  |  | 116 |
Net income applicable to common shareholders (1) |  | $ | 4,678 |  |  | $ | 2,012 |  |  | $ | 3,438 |
Denominator: |  |  |  |  |  |
Weighted average common shares outstanding |  | 328.2 |  |  | 347.8 |  |  | 362.0 |
Effect of dilutive potential common shares: |  |  |  |  |  |
Stock options |  | 3.2 |  |  | 3.6 |  |  | 4.3 |
Restricted stock units (non-participating) and performance stock awards |  | 2.1 |  |  | 1.8 |  |  | 1.5 |
Weighted average common and dilutive potential common shares outstanding |  | 333.5 |  |  | 353.2 |  |  | 367.8 |
Earnings per common share – Basic |  | $ | 14.25 |  |  | $ | 5.78 |  |  | $ | 9.50 |
Earnings per common share – Diluted |  | $ | 14.03 |  |  | $ | 5.70 |  |  | $ | 9.35 |
Anti-dilutive options excluded from diluted earnings per common share |  | 3.7 |  |  | 2.0 |  |  | 1.5 |
Schedule of changes in accounting principles | The impacts of the adjustments on the financial statements are summarized in the following tables.
Consolidated Statements of Operations
|  | Previous accounting principle |  | Impact of change (1) |  | As reported
($ in millions, except per share data) |  | Year Ended December 31, 2019
Property and casualty insurance claims and claims expense |  | $ | 24,074 |  |  | $ | (98 | ) |  | $ | 23,976 |
Operating costs and expenses |  | 5,752 |  |  | (62 | ) |  | 5,690 |
Pension and other postretirement remeasurement gains and losses |  | — |  |  | 114 |  |  | 114 |
Restructuring and related charges |  | 41 |  |  | — |  |  | 41 |
Total costs and expenses |  | 38,638 |  |  | (46 | ) |  | 38,592 |
Income from operations before income tax expense |  | 6,043 |  |  | 46 |  |  | 6,089 |
Income tax expense |  | 1,232 |  |  | 10 |  |  | 1,242 |
Net income |  | 4,811 |  |  | 36 |  |  | 4,847 |
Net income applicable to common shareholders |  | $ | 4,642 |  |  | $ | 36 |  |  | $ | 4,678 |
Earnings per common share: |  |  |  |  |  |
Net income applicable to common shareholders per common share - Basic |  | $ | 14.14 |  |  | $ | 0.11 |  |  | $ | 14.25 |
Net income applicable to common shareholders per common share - Diluted |  | $ | 13.92 |  |  | $ | 0.11 |  |  | $ | 14.03 |
(1) The Company merged two of its pension plans, which had no impact on its financial statements as the Company remeasures pension plan assets and projected benefit obligations immediately in earnings on a quarterly basis. However, the plan merger increased the impact of change by $41 million for 2019, reflecting the shorter amortization period for losses deferred in AOCI from one of the merged plans that was required as part of the merger.
Consolidated Statements of Operations
|  | Previous accounting principle |  | Change in accounting principle |  | As adjusted
|  | Year Ended December 31, 2018
Property and casualty insurance claims and claims expense |  | $ | 22,839 |  |  | $ | (61 | ) |  | $ | 22,778 |
Operating costs and expenses |  | 5,869 |  |  | (275 | ) |  | 5,594 |
Pension and other postretirement remeasurement gains and losses |  | — |  |  | 468 |  |  | 468 |
Restructuring and related charges |  | 83 |  |  | (16 | ) |  | 67 |
Total costs and expenses |  | 37,077 |  |  | 116 |  |  | 37,193 |
Income from operations before income tax expense |  | 2,744 |  |  | (116 | ) |  | 2,628 |
Income tax expense |  | 492 |  |  | (24 | ) |  | 468 |
Net income |  | 2,252 |  |  | (92 | ) |  | 2,160 |
Net income applicable to common shareholders |  | $ | 2,104 |  |  | $ | (92 | ) |  | $ | 2,012 |
Earnings per common share: |  |  |  |  |  |
Net income applicable to common shareholders per common share - Basic |  | $ | 6.05 |  |  | $ | (0.27 | ) |  | $ | 5.78 |
Net income applicable to common shareholders per common share - Diluted |  | $ | 5.96 |  |  | $ | (0.26 | ) |  | $ | 5.70 |
|  | Year Ended December 31, 2017
Property and casualty insurance claims and claims expense |  | $ | 21,929 |  |  | $ | (82 | ) |  | $ | 21,847 |
Operating costs and expenses |  | 5,442 |  |  | (246 | ) |  | 5,196 |
Pension and other postretirement remeasurement gains and losses |  | — |  |  | (217 | ) |  | (217 | )
Restructuring and related charges |  | 109 |  |  | (13 | ) |  | 96 |
Total costs and expenses |  | 35,436 |  |  | (558 | ) |  | 34,878 |
Income from operations before income tax expense |  | 3,991 |  |  | 558 |  |  | 4,549 |
Income tax expense |  | 802 |  |  | 193 |  |  | 995 |
Net income |  | 3,189 |  |  | 365 |  |  | 3,554 |
Net income applicable to common shareholders |  | $ | 3,073 |  |  | $ | 365 |  |  | $ | 3,438 |
Earnings per common share: |  |  |  |  |  |
Net income applicable to common shareholders per common share - Basic |  | $ | 8.49 |  |  | $ | 1.01 |  |  | $ | 9.50 |
Net income applicable to common shareholders per common share - Diluted |  | $ | 8.36 |  |  | $ | 0.99 |  |  | $ | 9.35 |
Consolidated Statements of Comprehensive Income |  |
|  | Previous accounting principle |  | Impact of change |  | As reported
($ in millions) |  | Year Ended December 31, 2019
Net income |  | $ | 4,811 |  |  | $ | 36 |  |  | $ | 4,847 |
Other comprehensive income (loss), after-tax |  |  |  |  |  |
Changes in: |  |  |  |  |  |
Unrealized net capital gains and losses |  | 1,889 |  |  | — |  |  | 1,889 |
Unrealized foreign currency translation adjustments |  | (4 | ) |  | (6 | ) |  | (10 | )
Unrecognized pension and other postretirement benefit cost (1) |  | 141 |  |  | (188 | ) |  | (47 | )
Other comprehensive income, after-tax |  | 2,026 |  |  | (194 | ) |  | 1,832 |
Comprehensive income |  | 6,837 |  |  | (158 | ) |  | 6,679 |
|  | Year Ended December 31, 2018
Net income |  | $ | 2,252 |  |  | $ | (92 | ) |  | $ | 2,160 |
Other comprehensive income (loss), after-tax |  |  |  |  |  |
Changes in: |  |  |  |  |  |
Unrealized net capital gains and losses |  | (754 | ) |  | — |  |  | (754 | )
Unrealized foreign currency translation adjustments |  | (55 | ) |  | 7 |  |  | (48 | )
Unrecognized pension and other postretirement benefit cost (1) |  | (144 | ) |  | 85 |  |  | (59 | )
Other comprehensive loss, after-tax |  | (953 | ) |  | 92 |  |  | (861 | )
Comprehensive income |  | 1,299 |  |  | — |  |  | 1,299 |
|  | Year Ended December 31, 2017
Net income |  | $ | 3,189 |  |  | $ | 365 |  |  | $ | 3,554 |
Other comprehensive income (loss), after-tax |  |  |  |  |  |
Changes in: |  |  |  |  |  |
Unrealized net capital gains and losses |  | 319 |  |  | — |  |  | 319 |
Unrealized foreign currency translation adjustments |  | 47 |  |  | (2 | ) |  | 45 |
Unrecognized pension and other postretirement benefit cost (1) |  | 307 |  |  | (359 | ) |  | (52 | )
Other comprehensive income, after-tax |  | 673 |  |  | (361 | ) |  | 312 |
Comprehensive income |  | 3,862 |  |  | 4 |  |  | 3,866 |
(1) Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.
Consolidated Statements of Financial Position |  |
|  | Previous accounting principle |  | Impact of change |  | As reported
($ in millions) |  | December 31, 2019
Retained income |  | 49,713 |  |  | (1,639 | ) |  | 48,074 |
Unrealized foreign currency translation adjustments |  | (68 | ) |  | 9 |  |  | (59 | )
Unrecognized pension and other postretirement benefit cost (1) |  | (1,350 | ) |  | 1,472 |  |  | 122 |
Total AOCI |  | 469 |  |  | 1,481 |  |  | 1,950 |
Total shareholders’ equity |  | 26,156 |  |  | (158 | ) |  | 25,998 |
|  | December 31, 2018
Retained income |  | 45,708 |  |  | (1,675 | ) |  | 44,033 |
Unrealized foreign currency translation adjustments |  | (64 | ) |  | 15 |  |  | (49 | )
Unrecognized pension and other postretirement benefit cost (1) |  | (1,491 | ) |  | 1,660 |  |  | 169 |
Total AOCI |  | (1,557 | ) |  | 1,675 |  |  | 118 |
Total shareholders’ equity |  | 21,312 |  |  | — |  |  | 21,312 |
(1) Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.
Consolidated Statements of Shareholders’ Equity |  |  |  |  |  |
($ in millions) |  | Previous accounting principle |  | Impact of change |  | As reported
|  | Year Ended December 31, 2019
Retained income |  |  |  |  |  |
Balance, beginning of year |  | $ | 45,708 |  |  | $ | (1,675 | ) |  | $ | 44,033 |
Cumulative effect of change in accounting principle |  | 21 |  |  | — |  |  | 21 |
Net income |  | 4,811 |  |  | 36 |  |  | 4,847 |
Dividends on common stock (declared per share of $2.00) |  | (658 | ) |  | — |  |  | (658 | )
Dividends on preferred stock |  | (169 | ) |  | — |  |  | (169 | )
Balance, end of year |  | 49,713 |  |  | (1,639 | ) |  | 48,074 |
Accumulated other comprehensive income (loss) |  |  |  |  |  |
Balance, beginning of year |  | (1,557 | ) |  | 1,675 |  |  | 118 |
Cumulative effect of change in accounting principle |  | — |  |  | — |  |  | — |
Change in unrealized net capital gains and losses |  | 1,889 |  |  | — |  |  | 1,889 |
Change in unrealized foreign currency translation adjustments |  | (4 | ) |  | (6 | ) |  | (10 | )
Change in unrecognized pension and other postretirement benefit cost (1) |  | 141 |  |  | (188 | ) |  | (47 | )
Balance, end of year |  | $ | 469 |  |  | $ | 1,481 |  |  | $ | 1,950 |
|  | Year Ended December 31, 2018
Retained income |  |  |  |  |  |
Balance, beginning of year |  | $ | 43,162 |  |  | $ | (1,583 | ) |  | $ | 41,579 |
Cumulative effect of change in accounting principle |  | 1,088 |  |  | — |  |  | 1,088 |
Net income |  | 2,252 |  |  | (92 | ) |  | 2,160 |
Dividends on common stock (declared per share of $1.84) |  | (646 | ) |  | — |  |  | (646 | )
Dividends on preferred stock |  | (148 | ) |  | — |  |  | (148 | )
Balance, end of year |  | 45,708 |  |  | (1,675 | ) |  | 44,033 |
Accumulated other comprehensive income (loss) |  |  |  |  |  |
Balance, beginning of year |  | 306 |  |  | 1,583 |  |  | 1,889 |
Cumulative effect of change in accounting principle |  | (910 | ) |  | — |  |  | (910 | )
Change in unrealized net capital gains and losses |  | (754 | ) |  | — |  |  | (754 | )
Change in unrealized foreign currency translation adjustments |  | (55 | ) |  | 7 |  |  | (48 | )
Change in unrecognized pension and other postretirement benefit cost (1) |  | (144 | ) |  | 85 |  |  | (59 | )
Balance, end of year |  | (1,557 | ) |  | 1,675 |  |  | 118 |
|  | Year Ended December 31, 2017
Retained income |  |  |  |  |  |
Balance, beginning of year |  | $ | 40,678 |  |  | $ | (1,669 | ) |  | $ | 39,009 |
Net income |  | 3,189 |  |  | 365 |  |  | 3,554 |
Dividends on common stock (declared per share of $1.48) |  | (540 | ) |  | — |  |  | (540 | )
Dividends on preferred stock |  | (116 | ) |  | — |  |  | (116 | )
Reclassification of tax effects due to change in accounting principle |  | (49 | ) |  | (279 | ) |  | (328 | )
Balance, end of year |  | 43,162 |  |  | (1,583 | ) |  | 41,579 |
Accumulated other comprehensive income (loss) |  |  |  |  |  |
Balance, beginning of year |  | (416 | ) |  | 1,665 |  |  | 1,249 |
Change in unrealized net capital gains and losses |  | 319 |  |  | — |  |  | 319 |
Change in unrealized foreign currency translation adjustments |  | 47 |  |  | (2 | ) |  | 45 |
Change in unrecognized pension and other postretirement benefit cost (1) |  | 307 |  |  | (359 | ) |  | (52 | )
Reclassification of tax effects due to change in accounting principle |  | 49 |  |  | 279 |  |  | 328 |
Balance, end of year |  | 306 |  |  | 1,583 |  |  | 1,889 |
(1) Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.
Consolidated Statements of Cash Flows |  |
|  | Previous accounting principle |  | Impact of change |  | As reported
($ in millions) |  | Year Ended December 31, 2019
Cash flows from operating activities |  |  |  |  |  |
Net income |  | $ | 4,811 |  |  | $ | 36 |  |  | $ | 4,847 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Pension and other postretirement measurement gains and losses |  | — |  |  | 114 |  |  | 114 |
Income taxes |  | 477 |  |  | 10 |  |  | 487 |
Other operating assets and liabilities |  | 110 |  |  | (160 | ) |  | (50 | )
Net cash provided by operating activities |  | $ | 5,129 |  |  | $ | — |  |  | $ | 5,129 |
|  | Year Ended December 31, 2018
Cash flows from operating activities |  |  |  |  |  |
Net income |  | $ | 2,252 |  |  | $ | (92 | ) |  | $ | 2,160 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Pension and other postretirement measurement gains and losses |  | — |  |  | 468 |  |  | 468 |
Income taxes |  | (356 | ) |  | (24 | ) |  | (380 | )
Other operating assets and liabilities |  | 1,207 |  |  | (352 | ) |  | 855 |
Net cash provided by operating activities |  | $ | 5,175 |  |  | $ | — |  |  | $ | 5,175 |
|  | Year Ended December 31, 2017
Cash flows from operating activities |  |  |  |  |  |
Net income |  | $ | 3,189 |  |  | $ | 365 |  |  | $ | 3,554 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Pension and other postretirement measurement gains and losses |  | — |  |  | (217 | ) |  | (217 | )
Income taxes |  | (245 | ) |  | 193 |  |  | (52 | )
Other operating assets and liabilities |  | 328 |  |  | (341 | ) |  | (13 | )
Net cash provided by operating activities |  | $ | 4,314 |  |  | $ | — |  |  | $ | 4,314 |

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