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v3.21.1

Acquisition and Disposition (Table) | 3 Months Ended
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Mar. 31, 2021
Business Combinations [Abstract] |
Schedule of recognized identified assets acquired and liabilities assumed |
Assets and liabilities recognized in acquisition (1) |  |
($ in millions) |  |  |  | January 4, 2021 |  |
Assets |  |  |  |  |  |
Investments |  |  |  | $ | 4,957 |  |  |
Cash |  |  |  | 402 |  |  |
Premiums and other receivables, net |  |  |  | 1,545 |  |  |
Deferred acquisition costs (value of business acquired) |  |  |  | 317 |  |  |
Reinsurance recoverables, net |  |  |  | 1,219 |  |  |
Intangible assets |  |  |  | 1,199 |  |  |
Other assets |  |  |  | 734 |  |  |
Goodwill (2) |  |  |  | 980 |  |  |
Total assets |  |  |  | 11,353 |  |  |
Liabilities |  |  |  |  |  |
Reserve for property and casualty insurance claims and claims expense |  |  |  | 2,774 |  |  |
Reserve for future policy benefits |  |  |  | 189 |  |  |
Unearned premiums |  |  |  | 2,245 |  |  |
Reinsurance payable |  |  |  | 364 |  |  |
Debt (3) |  |  |  | 592 |  |  |
Deferred tax liabilities |  |  |  | 177 |  |  |
Other liabilities |  |  |  | 701 |  |  |
Total liabilities |  |  |  | $ | 7,042 |  |  |
(1)The amounts reflect preliminary allocation of assets acquired and liabilities assumed. The acquisition date fair values of assets and liabilities, including insurance reserves and intangible assets, as well as the related estimated useful lives of intangibles, are preliminary estimates and are subject to revisions within one year of acquisition date. (2)$616 million, $29 million and $335 million of goodwill were allocated to the Allstate Protection, Protection Services and Allstate Health and Benefits segments, respectively, and is non-deductible for income tax purposes. Goodwill is primarily attributable to expected synergies and future growth opportunities. (3)Subsequent to the acquisition, the Company repaid $100 million of 7.625% Subordinated Notes and $72 million of Subordinated Debentures on February 3, 2021 and March 15, 2021, respectively. The Company had principal balance remaining of $417 million 6.750% Senior Notes due 2024 as of March 31, 2021, including a purchase accounting fair value adjustment of $67 million.
Schedule of indefinite-lived intangible assets |
Intangible assets by type
($ in millions) |  | January 4, 2021
Distribution and customer relationships |  | $ | 795 |
Trade names |  | 102 |
Licenses |  | 97 |
Technology and other |  | 205 |
Total |  | $ | 1,199 |
Schedule of finite-lived intangible assets, future amortization expense |
Estimated amortization expense of National General intangible assets for the next five years and thereafter
($ in millions) |  |  |  |
2022 |  |  |  | $ | 218 |
2023 |  |  |  | 185 |
2024 |  |  |  | 135 |
2025 |  |  |  | 103 |
2026 |  |  |  | 70 |
Thereafter |  |  |  | 140 |
Total amortization |  |  |  | $ | 851 |
Schedule of disposal groups, including discontinued operations |
Financial results from discontinued operations |  |  |  |  |  |
|  | Three months ended March 31, |  |  |  |
($ in millions) |  | 2021 |  | 2020 |  |  |  |
Revenues |  |  |  |  |  |  |  |
Life premiums and contract charges |  | $ | 340 |  |  | $ | 335 |  |  |  |  |
Net investment income |  | 439 |  |  | 175 |  |  |  |  |
Realized capital gains (losses) |  | 79 |  |  | (300) |  |  |  |  |
Total revenues |  | 858 |  |  | 210 |  |  |  |  |
Costs and expenses |  |  |  |  |  |  |  |
Life contract benefits |  | 410 |  |  | 360 |  |  |  |  |
Interest credited to contractholder funds |  | 85 |  |  | 123 |  |  |  |  |
Amortization of DAC |  | 36 |  |  | 36 |  |  |  |  |
Operating costs and expenses |  | 55 |  |  | 61 |  |  |  |  |
Restructuring and related charges |  | 19 |  |  | 1 |  |  |  |  |
Total costs and expenses |  | 605 |  |  | 581 |  |  |  |  |
Amortization of deferred gain on reinsurance |  | 2 |  |  | 1 |  |  |  |  |
Income (loss) from discontinued operations before income tax expense |  | 255 |  |  | (370) |  |  |  |  |
Income tax expense (benefit) |  | 50 |  |  | (82) |  |  |  |  |
Income (loss) from discontinued operations, net of tax |  | 205 |  |  | (288) |  |  |  |  |
Loss on disposition of operations |  | (4,418) |  |  | — |  |  |  |  |
Income tax benefit |  | (420) |  |  | — |  |  |  |  |
Loss on disposition, net of tax |  | (3,998) |  |  | — |  |  |  |  |
Loss from discontinued operations, net of tax |  | $ | (3,793) |  |  | $ | (288) |  |  |  |  |
Major classes of assets and liabilities to be transferred in transactions |  |  |  |  |  |
($ in millions) |  | March 31, 2021 |  |  |  | December 31, 2020 |  |
Assets |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |
Fixed income securities, at fair value (amortized cost, net $23,511 and $21,417) |  | $ | 25,073 |  |  |  |  | $ | 23,789 |  |  |
Equity securities, at fair value (cost $1,191 and $1,113) |  | 1,643 |  |  |  |  | 1,542 |  |  |
Mortgage loans, net |  | 3,062 |  |  |  |  | 3,329 |  |  |
Limited partnership interests |  | 1,942 |  |  |  |  | 3,046 |  |  |
Short-term, at fair value (amortized cost $1,652 and $993) |  | 1,652 |  |  |  |  | 993 |  |  |
Other, net |  | 936 |  |  |  |  | 1,998 |  |  |
Total investments |  | 34,308 |  |  |  |  | 34,697 |  |  |
Cash |  | 89 |  |  |  |  | 66 |  |  |
Deferred policy acquisitions costs |  | 1,039 |  |  |  |  | 925 |  |  |
Reinsurance recoverables, net |  | 1,982 |  |  |  |  | 2,005 |  |  |
Accrued investment income |  | 248 |  |  |  |  | 229 |  |  |
Other assets |  | 236 |  |  |  |  | 865 |  |  |
Separate accounts |  | 3,339 |  |  |  |  | 3,344 |  |  |
Assets held for sale |  | 41,241 |  |  |  |  | 42,131 |  |  |
Less: loss accrual |  | 4,412 |  |  |  |  | — |  |  |
Total assets held for sale |  | $ | 36,829 |  |  |  |  | $ | 42,131 |  |  |
Liabilities |  |  |  |  |  |  |  |
Reserve for future policy benefits |  | $ | 11,581 |  |  |  |  | $ | 11,740 |  |  |
Contractholder funds |  | 16,112 |  |  |  |  | 16,356 |  |  |
Deferred income taxes |  | 857 |  |  |  |  | 973 |  |  |
Other liabilities and accrued expenses |  | 1,494 |  |  |  |  | 912 |  |  |
Separate accounts |  | 3,339 |  |  |  |  | 3,344 |  |  |
Total liabilities held for sale |  | $ | 33,383 |  |  |  |  | $ | 33,325 |  |  |
Cash flows from discontinued operations |  |  |  |  |  |
|  | Three months ended March 31, |  |  |  |
($ in millions) |  | 2021 |  | 2020 |  |  |  |
Net cash provided by operating activities from discontinued operations |  | $ | 64 |  |  | $ | 111 |  |  |  |  |
Net cash provided by investing activities from discontinued operations |  | 88 |  |  | 85 |  |  |  |  |

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- Definition Tabular disclosure of assets, excluding financial assets and goodwill, lacking physical substance and exist in perpetuity, by either major class or business segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -Subparagraph (b),(d) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121647850&loc=d3e4845-128472 + Details
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