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Reportable Segments | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Reportable Segments |
Note 4 | Reportable Segments
The Company’s chief operating decision maker reviews financial performance and makes decisions about the allocation of resources for the seven reportable segments. These segments are described below and align with the Company’s key product and service offerings. Allstate Protection principally offers private passenger auto and homeowners insurance in the United States and Canada, with earned premiums accounting for 79.4% of Allstate’s 2020 consolidated revenues. Allstate Protection primarily operates in the U.S. (all 50 states and the District of Columbia (“D.C.”)) and Canada. For 2020, 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 $1.57 billion, $1.37 billion and $1.20 billion in 2020, 2019 and 2018, 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. Protection Services comprise Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection. Protection Services offer consumer product protection plans, finance and insurance products (including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel and paintless dent repair protection), roadside assistance, device and mobile data collection services and analytic solutions using automotive telematics information and identity protection. Protection Services primarily operate in the U.S. and Canada, with Allstate Protection Plans also offering services in Europe and Japan. Revenues from external customers generated outside the United States relate to consumer product protection plans sold primarily in the European Union and were $188 million, $95 million and $61 million in 2020, 2019 and 2018, respectively. Allstate Life consists of traditional, interest-sensitive and variable life insurance products. Allstate Life primarily operates in the U.S. (all 50 states and D.C.). For 2020, 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, hospital, short-term disability and other health products. Allstate Benefits primarily operates in the U.S. (all 50 states and D.C.) and Canada. For 2020, the top geographic locations for statutory direct accident and health insurance premiums were Florida, Texas, North Carolina, and California. 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 primarily of deferred fixed annuities and immediate annuities (including standard and sub-standard structured settlements). This segment is in run-off. Corporate and Other comprises holding company activities and certain non-insurance operations, including expenses associated with strategic initiatives. 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, Protection Services, 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 consolidated results. For segment results, services provided by Protection Services to Allstate Protection 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 Protection Services, 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 or impairment 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 that are 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 that are 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
|  | For the years ended December 31,
($ in millions) |  | 2020 |  | 2019 |  | 2018
Property-Liability |  |  |  |  |  |
Insurance premiums |  |  |  |  |  |
Auto |  | $ | 24,640 |  |  | $ | 24,188 |  |  | $ | 22,970 |
Homeowners |  | 8,254 |  |  | 7,912 |  |  | 7,517 |
Other personal lines |  | 1,919 |  |  | 1,861 |  |  | 1,808 |
Commercial lines |  | 767 |  |  | 882 |  |  | 655 |
Allstate Protection |  | 35,580 |  |  | 34,843 |  |  | 32,950 |
Discontinued Lines and Coverages |  | — |  |  | — |  |  | — |
Total Property-Liability insurance premiums |  | 35,580 |  |  | 34,843 |  |  | 32,950 |
Other revenue |  | 736 |  |  | 741 |  |  | 738 |
Net investment income |  | 1,421 |  |  | 1,533 |  |  | 1,464 |
Realized capital gains (losses) |  | 990 |  |  | 1,470 |  |  | (639) |
Total Property-Liability |  | 38,727 |  |  | 38,587 |  |  | 34,513 |
Protection Services |  |  |  |  |  |
Consumer product protection plans |  | 909 |  |  | 633 |  |  | 503 |
Roadside assistance |  | 188 |  |  | 238 |  |  | 263 |
Finance and insurance products |  | 396 |  |  | 362 |  |  | 332 |
Intersegment premiums and service fees (1) |  | 147 |  |  | 154 |  |  | 122 |
Other revenue (2) |  | 208 |  |  | 188 |  |  | 82 |
Net investment income |  | 44 |  |  | 42 |  |  | 27 |
Realized capital gains (losses) |  | 30 |  |  | 32 |  |  | (11) |
Total Protection Services |  | 1,922 |  |  | 1,649 |  |  | 1,318 |
Allstate Life |  |  |  |  |  |
Traditional life insurance premiums |  | 633 |  |  | 630 |  |  | 600 |
Accident and health insurance premiums |  | 2 |  |  | 2 |  |  | 2 |
Interest-sensitive life insurance contract charges |  | 705 |  |  | 711 |  |  | 713 |
Other revenue |  | 121 |  |  | 125 |  |  | 119 |
Net investment income |  | 502 |  |  | 514 |  |  | 505 |
Realized capital gains (losses) |  | (10) |  |  | 1 |  |  | (14) |
Total Allstate Life |  | 1,953 |  |  | 1,983 |  |  | 1,925 |
Allstate Benefits |  |  |  |  |  |
Traditional life insurance premiums |  | 46 |  |  | 43 |  |  | 44 |
Accident and health insurance premiums |  | 926 |  |  | 988 |  |  | 980 |
Interest-sensitive life insurance contract charges |  | 122 |  |  | 114 |  |  | 111 |
Net investment income |  | 78 |  |  | 83 |  |  | 77 |
Realized capital gains (losses) |  | 8 |  |  | 12 |  |  | (9) |
Total Allstate Benefits |  | 1,180 |  |  | 1,240 |  |  | 1,203 |
Allstate Annuities |  |  |  |  |  |
Fixed annuities contract charges |  | 10 |  |  | 13 |  |  | 15 |
Net investment income |  | 761 |  |  | 917 |  |  | 1,096 |
Realized capital gains (losses) |  | 279 |  |  | 346 |  |  | (166) |
Total Allstate Annuities |  | 1,050 |  |  | 1,276 |  |  | 945 |
Corporate and Other |  |  |  |  |  |
Net investment income |  | 47 |  |  | 70 |  |  | 71 |
Realized capital gains (losses) |  | 59 |  |  | 24 |  |  | (38) |
Total Corporate and Other |  | 106 |  |  | 94 |  |  | 33 |
Intersegment eliminations (1) |  | (147) |  |  | (154) |  |  | (122) |
Consolidated revenues |  | $ | 44,791 |  |  | $ | 44,675 |  |  | $ | 39,815 |
(1)Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the consolidated financial statements. (2)Other revenue is primarily related to Allstate Identity Protection, Allstate Dealer Services, and Allstate Protection Plans.
Reportable segments financial performance
|  | For the years ended December 31,
($ in millions) |  | 2020 |  | 2019 |  | 2018
Property-Liability |  |  |  |  |  |
Allstate Protection |  | $ | 4,566 |  |  | $ | 2,912 |  |  | $ | 2,343 |
Discontinued Lines and Coverages |  | (144) |  |  | (108) |  |  | (90) |
Total underwriting income |  | 4,422 |  |  | 2,804 |  |  | 2,253 |
Net investment income |  | 1,421 |  |  | 1,533 |  |  | 1,464 |
Income tax expense on operations |  | (1,166) |  |  | (887) |  |  | (747) |
Realized capital gains (losses), after-tax |  | 774 |  |  | 1,161 |  |  | (500) |
Tax Legislation expense |  | — |  |  | — |  |  | (5) |
Property-Liability net income applicable to common shareholders |  | 5,451 |  |  | 4,611 |  |  | 2,465 |
Protection Services |  |  |  |  |  |
Adjusted net income |  | 153 |  |  | 38 |  |  | 8 |
Realized capital gains (losses), after-tax |  | 23 |  |  | 25 |  |  | (9) |
Amortization of purchased intangibles, after-tax |  | (84) |  |  | (97) |  |  | (74) |
Impairment of purchased intangibles, after-tax |  | — |  |  | (43) |  |  | — |
Tax Legislation expense |  | — |  |  | — |  |  | (4) |
Protection Services net income (loss) applicable to common shareholders |  | 92 |  |  | (77) |  |  | (79) |
Allstate Life |  |  |  |  |  |
Adjusted net income |  | 194 |  |  | 261 |  |  | 295 |
Realized capital gains (losses), after-tax |  | (9) |  |  | — |  |  | (11) |
Valuation changes on embedded derivatives that are not hedged, after-tax |  | (34) |  |  | (9) |  |  | — |
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax |  | 8 |  |  | (5) |  |  | (8) |
Tax Legislation expense |  | — |  |  | — |  |  | (16) |
Allstate Life net income applicable to common shareholders |  | 159 |  |  | 247 |  |  | 260 |
Allstate Benefits |  |  |  |  |  |
Adjusted net income |  | 96 |  |  | 115 |  |  | 124 |
Realized capital gains (losses), after-tax |  | 7 |  |  | 9 |  |  | (7) |
DAC and DSI amortization related to realized capital gains and losses, after-tax |  | — |  |  | — |  |  | 1 |
Tax Legislation benefit |  | — |  |  | — |  |  | — |
Allstate Benefits net income applicable to common shareholders |  | 103 |  |  | 124 |  |  | 118 |
Allstate Annuities |  |  |  |  |  |
Adjusted net (loss) income |  | (53) |  |  | 10 |  |  | 131 |
Realized capital gains (losses), after-tax |  | 221 |  |  | 274 |  |  | (131) |
Valuation changes on embedded derivatives that are not hedged, after-tax |  | (2) |  |  | (6) |  |  | 3 |
Premium deficiency for immediate annuities, after-tax (1) |  | (178) |  |  | — |  |  | — |
Gain on disposition of operations, after-tax |  | 3 |  |  | 4 |  |  | 4 |
Tax Legislation benefit |  | — |  |  | — |  |  | 69 |
Allstate Annuities net (loss) income applicable to common shareholders |  | (9) |  |  | 282 |  |  | 76 |
Corporate and Other |  |  |  |  |  |
Adjusted net loss |  | (428) |  |  | (438) |  |  | (406) |
Realized capital gains (losses), after-tax |  | 47 |  |  | 19 |  |  | (30) |
Pension and other postretirement remeasurement gains (losses), after-tax |  | 39 |  |  | (90) |  |  | (370) |
Curtailment gain, after-tax |  | 7 |  |  | — |  |  | — |
Business combination expenses, after-tax |  | — |  |  | — |  |  | (7) |
Tax Legislation expense |  | — |  |  | — |  |  | (15) |
Corporate and Other net loss applicable to common shareholders |  | (335) |  |  | (509) |  |  | (828) |
Consolidated net income applicable to common shareholders |  | $ | 5,461 |  |  | $ | 4,678 |  |  | $ | 2,012 |
(1) Contract benefits increased by $225 million, pre-tax, for premium deficiency on immediate annuities with life contingencies due to updated investment and actuarial assumptions in the third quarter of 2020.
Additional significant financial performance data |  |  |  |  |  |
|  | For the years ended December 31,
($ in millions) |  | 2020 |  | 2019 |  | 2018
Amortization of DAC |  |  |  |  |  |
Property-Liability |  | $ | 4,642 |  |  | $ | 4,649 |  |  | $ | 4,475 |
Protection Services |  | 658 |  |  | 543 |  |  | 463 |
Allstate Life |  | 149 |  |  | 173 |  |  | 132 |
Allstate Benefits |  | 177 |  |  | 161 |  |  | 145 |
Allstate Annuities |  | 4 |  |  | 7 |  |  | 7 |
Consolidated |  | $ | 5,630 |  |  | $ | 5,533 |  |  | $ | 5,222 |
Income tax expense (benefit) |  |  |  |  |  |
Property-Liability |  | $ | 1,382 |  |  | $ | 1,196 |  |  | $ | 613 |
Protection Services |  | 26 |  |  | (18) |  |  | (19) |
Allstate Life |  | 17 |  |  | 53 |  |  | 75 |
Allstate Benefits |  | 28 |  |  | 35 |  |  | 32 |
Allstate Annuities |  | (7) |  |  | 73 |  |  | (66) |
Corporate and Other |  | (63) |  |  | (97) |  |  | (167) |
Consolidated |  | $ | 1,383 |  |  | $ | 1,242 |  |  | $ | 468 |
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 Protection Services, 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, investments and deferred policy acquisition costs (1) |  |  |  |
|  | As of December 31, |  |  |  |
($ in millions) |  | 2020 |  | 2019 |  |  |  |
Assets |  |  |  |  |  |  |  |
Property-Liability |  | $ | 69,171 |  |  | $ | 67,243 |  |  |  |  |
Protection Services |  | 6,177 |  |  | 5,746 |  |  |  |  |
Allstate Life |  | 15,051 |  |  | 14,771 |  |  |  |  |
Allstate Benefits |  | 2,905 |  |  | 2,915 |  |  |  |  |
Allstate Annuities |  | 27,080 |  |  | 26,914 |  |  |  |  |
Corporate and Other |  | 5,603 |  |  | 2,361 |  |  |  |  |
Consolidated |  | $ | 125,987 |  |  | $ | 119,950 |  |  |  |  |
Investments |  |  |  |  |  |  |  |
Property-Liability |  | $ | 50,134 |  |  | $ | 48,414 |  |  |  |  |
Protection Services |  | 1,822 |  |  | 1,544 |  |  |  |  |
Allstate Life |  | 12,406 |  |  | 11,914 |  |  |  |  |
Allstate Benefits |  | 2,012 |  |  | 1,941 |  |  |  |  |
Allstate Annuities |  | 22,291 |  |  | 22,221 |  |  |  |  |
Corporate and Other |  | 5,572 |  |  | 2,328 |  |  |  |  |
Consolidated |  | $ | 94,237 |  |  | $ | 88,362 |  |  |  |  |
Deferred policy acquisition costs |  |  |  |  |  |  |  |
Property-Liability |  | $ | 1,608 |  |  | $ | 1,624 |  |  |  |  |
Protection Services |  | 1,696 |  |  | 1,448 |  |  |  |  |
Allstate Life |  | 909 |  |  | 1,079 |  |  |  |  |
Allstate Benefits |  | 470 |  |  | 527 |  |  |  |  |
Allstate Annuities |  | 17 |  |  | 21 |  |  |  |  |
Consolidated |  | $ | 4,700 |  |  | $ | 4,699 |  |  |  |  |
(1)The balances reflect the elimination of related party investments between segments.

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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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