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Reportable Segments | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Reportable Segments |
Note 4 | 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 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 and other revenue, less claims and claims expenses (“losses”), Shelter-in-Place Payback expense, amortization of DAC, operating costs and expenses, amortization of purchased intangibles 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
• Pension and other postretirement remeasurement gains and losses, after-tax
• 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 or impairment of purchased intangibles, 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 |  |  |  |
($ in millions) |  | Three months ended June 30, |  | Six months ended June 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Property-Liability |  |  |  |  |  |  |  |  |  |  |  |
Insurance premiums |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | $ | 6,173 |  |  | $ | 6,035 |  |  | $ | 12,327 |  |  | $ | 11,965 |
Homeowners |  | 2,053 |  |  | 1,958 |  |  | 4,091 |  |  | 3,893 |
Other personal lines |  | 478 |  |  | 462 |  |  | 949 |  |  | 921 |
Commercial lines |  | 159 |  |  | 226 |  |  | 377 |  |  | 409 |
Allstate Protection |  | 8,863 |  |  | 8,681 |  |  | 17,744 |  |  | 17,188 |
Discontinued Lines and Coverages |  | — |  |  | — |  |  | — |  |  | — |
Total Property-Liability insurance premiums |  | 8,863 |  |  | 8,681 |  |  | 17,744 |  |  | 17,188 |
Other revenue |  | 182 |  |  | 190 |  |  | 363 |  |  | 366 |
Net investment income |  | 178 |  |  | 471 |  |  | 380 |  |  | 762 |
Realized capital gains (losses) |  | 382 |  |  | 256 |  |  | 279 |  |  | 753 |
Total Property-Liability |  | 9,605 |  |  | 9,598 |  |  | 18,766 |  |  | 19,069 |
Service Businesses |  |  |  |  |  |  |  |  |  |
Consumer product protection plans |  | 219 |  |  | 153 |  |  | 425 |  |  | 298 |
Roadside assistance |  | 44 |  |  | 63 |  |  | 95 |  |  | 126 |
Finance and insurance products |  | 97 |  |  | 89 |  |  | 194 |  |  | 176 |
Intersegment premiums and service fees (1) |  | 35 |  |  | 33 |  |  | 73 |  |  | 66 |
Other revenue |  | 51 |  |  | 48 |  |  | 103 |  |  | 95 |
Net investment income |  | 11 |  |  | 10 |  |  | 21 |  |  | 19 |
Realized capital gains (losses) |  | 19 |  |  | 9 |  |  | (5 | ) |  | 17 |
Total Service Businesses |  | 476 |  |  | 405 |  |  | 906 |  |  | 797 |
Allstate Life |  |  |  |  |  |  |  |
Traditional life insurance premiums |  | 164 |  |  | 156 |  |  | 317 |  |  | 310 |
Accident and health insurance premiums |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |
Interest-sensitive life insurance contract charges |  | 174 |  |  | 176 |  |  | 354 |  |  | 359 |
Other revenue |  | 24 |  |  | 33 |  |  | 56 |  |  | 60 |
Net investment income |  | 123 |  |  | 125 |  |  | 251 |  |  | 252 |
Realized capital gains (losses) |  | 19 |  |  | 1 |  |  | (12 | ) |  | (4 | )
Total Allstate Life |  | 505 |  |  | 492 |  |  | 967 |  |  | 978 |
Allstate Benefits |  |  |  |  |  |  |  |
Traditional life insurance premiums |  | 12 |  |  | 10 |  |  | 21 |  |  | 19 |
Accident and health insurance premiums |  | 225 |  |  | 246 |  |  | 469 |  |  | 496 |
Interest-sensitive life insurance contract charges |  | 26 |  |  | 28 |  |  | 55 |  |  | 57 |
Net investment income |  | 20 |  |  | 21 |  |  | 40 |  |  | 40 |
Realized capital gains (losses) |  | 11 |  |  | 2 |  |  | (3 | ) |  | 6 |
Total Allstate Benefits |  | 294 |  |  | 307 |  |  | 582 |  |  | 618 |
Allstate Annuities |  |  |  |  |  |  |  |
Fixed annuities contract charges |  | 2 |  |  | 4 |  |  | 4 |  |  | 7 |
Net investment income |  | 66 |  |  | 296 |  |  | 113 |  |  | 486 |
Realized capital gains (losses) |  | 245 |  |  | 48 |  |  | (24 | ) |  | 204 |
Total Allstate Annuities |  | 313 |  |  | 348 |  |  | 93 |  |  | 697 |
Corporate and Other |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | 11 |  |  | 19 |  |  | 25 |  |  | 31 |
Realized capital gains (losses) |  | 28 |  |  | 8 |  |  | 7 |  |  | 10 |
Total Corporate and Other |  | 39 |  |  | 27 |  |  | 32 |  |  | 41 |
Intersegment eliminations (1) |  | (35 | ) |  | (33 | ) |  | (73 | ) |  | (66 | )
Consolidated revenues |  | $ | 11,197 |  |  | $ | 11,144 |  |  | $ | 21,273 |  |  | $ | 22,134 |
(1) | Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside Services and are eliminated in the condensed consolidated financial statements.
Reportable segments financial performance |  |  |  |
|  | Three months ended June 30, |  | Six months ended June 30,
($ in millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Property-Liability |  |  |  |  |  |  |  |
Allstate Protection (1) |  | $ | 907 |  |  | $ | 370 |  |  | $ | 2,255 |  |  | $ | 1,073 |
Discontinued Lines and Coverages |  | (3 | ) |  | (3 | ) |  | (6 | ) |  | (6 | )
Total underwriting income |  | 904 |  |  | 367 |  |  | 2,249 |  |  | 1,067 |
Net investment income |  | 178 |  |  | 471 |  |  | 380 |  |  | 762 |
Income tax expense on operations |  | (209 | ) |  | (179 | ) |  | (512 | ) |  | (381 | )
Realized capital gains (losses), after-tax |  | 299 |  |  | 204 |  |  | 217 |  |  | 597 |
Property-Liability net income applicable to common shareholders |  | 1,172 |  |  | 863 |  |  | 2,334 |  |  | 2,045 |
Service Businesses |  |  |  |  |  |  |  |
Adjusted net income |  | 38 |  |  | 16 |  |  | 75 |  |  | 27 |
Realized capital gains (losses), after-tax |  | 15 |  |  | 6 |  |  | (4 | ) |  | 13 |
Amortization of purchased intangibles, after-tax |  | (21 | ) |  | (25 | ) |  | (42 | ) |  | (49 | )
Impairment of purchased intangibles, after-tax |  | — |  |  | (43 | ) |  | — |  |  | (43 | )
Service Businesses net income (loss) applicable to common shareholders |  | 32 |  |  | (46 | ) |  | 29 |  |  | (52 | )
Allstate Life |  |  |  |  |  |  |  |
Adjusted net income |  | 72 |  |  | 68 |  |  | 152 |  |  | 141 |
Realized capital gains (losses), after-tax |  | 16 |  |  | — |  |  | (9 | ) |  | (4 | )
Valuation changes on embedded derivatives not hedged, after-tax |  | (35 | ) |  | — |  |  | (23 | ) |  | — |
DAC and DSI amortization related to realized capital gains and losses, after-tax |  | 11 |  |  | (1 | ) |  | 8 |  |  | (3 | )
Allstate Life net income applicable to common shareholders |  | 64 |  |  | 67 |  |  | 128 |  |  | 134 |
Allstate Benefits |  |  |  |  |  |  |  |
Adjusted net income |  | 5 |  |  | 37 |  |  | 29 |  |  | 68 |
Realized capital gains (losses), after-tax |  | 7 |  |  | 2 |  |  | (3 | ) |  | 5 |
Allstate Benefits net income applicable to common shareholders |  | 12 |  |  | 39 |  |  | 26 |  |  | 73 |
Allstate Annuities |  |  |  |  |  |  |  |
Adjusted net (loss) income |  | (111 | ) |  | 52 |  |  | (250 | ) |  | 27 |
Realized capital gains (losses), after-tax |  | 194 |  |  | 37 |  |  | (19 | ) |  | 161 |
Valuation changes on embedded derivatives not hedged, after-tax |  | (6 | ) |  | (2 | ) |  | (4 | ) |  | (5 | )
Gain on disposition of operations, after-tax |  | 1 |  |  | 1 |  |  | 2 |  |  | 2 |
Allstate Annuities net income (loss) applicable to common shareholders |  | 78 |  |  | 88 |  |  | (271 | ) |  | 185 |
Corporate and Other |  |  |  |  |  |  |  |
Adjusted net loss |  | (99 | ) |  | (98 | ) |  | (206 | ) |  | (201 | )
Realized capital gains (losses), after-tax |  | 23 |  |  | 7 |  |  | 6 |  |  | 8 |
Pension and other postretirement remeasurement gains (losses), after-tax |  | (58 | ) |  | (99 | ) |  | (309 | ) |  | (110 | )
Corporate and Other net loss applicable to common shareholders |  | (134 | ) |  | (190 | ) |  | (509 | ) |  | (303 | )
Consolidated net income applicable to common shareholders |  | $ | 1,224 |  |  | $ | 821 |  |  | $ | 1,737 |  |  | $ | 2,082 |
(1) Due to the significant declines in the number of auto accidents caused by mandated stay-at-home orders, other pandemic containment actions and reduced economic activity, auto and commercial lines customers received a Shelter-in-Place Payback of $948 million with $210 million recognized in first quarter 2020 and $738 million recognized in second quarter 2020.

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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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