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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenues
Property-liability insurance premiums (net of reinsurance ceded of $1,092, $1,056 and $1,139)	$ 25,957	$ 26,194	$ 26,967
all:LifeAndAnnuityPremiumsAndContractChargesNetOfReinsuranceCeded	2,168	1,958	1,895
Net investment income	4,102	4,444	5,622
Realized capital gains and losses:
all:ImpairmentOfInvestmentsAddendum	(937)	(2,376)	(3,735)
all:OtherThanTemporaryImpairmentLossesInvestmentsPortionInOtherComprehensiveIncomeLossBeforeTaxIncludingPortionAttributableToNoncontrollingInterest	(64)	457
all:OtherThanTemporaryImpairmentLossesInvestmentsPortionRecognizedInEarningsNet	(1,001)	(1,919)	(3,735)
all:OtherRealizedCapitalGainsAndLosses	174	1,336	(1,355)
Total realized capital gains and losses	(827)	(583)	(5,090)
Total revenues	31,400	32,013	29,394
Costs and expenses
Property-liability insurance claims and claims expense (net of reinsurance ceded of $271, $415 and $620)	18,951	18,746	20,064
all:LifeAndAnnuityContractBenefitsNetOfReinsuranceRecoveries	1,815	1,617	1,612
Interest credited to contractholder funds (net of reinsurance ceded of $32, $32 and $43)	1,807	2,126	2,411
Amortization of deferred policy acquisition costs	4,034	4,754	4,679
Operating costs and expenses	3,281	3,007	3,273
Restructuring and related charges	30	130	23
Interest expense	367	392	351
Total costs and expenses	30,285	30,772	32,413
Gain (loss) on disposition of operations	11	7	(6)
Income (loss) from operations before income tax expense (benefit)	1,126	1,248	(3,025)
Income tax expense (benefit)	198	394	(1,346)
Net income (loss)	$ 928	$ 854	$ (1,679)
Earnings per share:
Net income (loss) per share - Basic (in dollars per share)	$ 1.72	$ 1.58	$ (3.06)
Weighted average shares - Basic (in shares)	540.3	539.6	548.3
Net income (loss) per share - Diluted (in dollars per share)	$ 1.71	$ 1.58	$ (3.06)
Weighted average shares - Diluted (in shares)	542.5	540.9	548.3
Cash dividends declared per share (in dollars per share)	$ 0.80	$ 0.80	$ 1.64

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED STATEMENTS OF OPERATIONS
Property-liability insurance premiums, reinsurance ceded	$ 1,092	$ 1,056	$ 1,139
all:CededLifeAndAnnuityPremiumsAndContractCharges	804	838	900
all:ReinsuranceCededPropertyAndLiabilityInsuranceClaimsAndClaimsExpense	271	415	620
all:ReinsuranceCededLifeAndAnnuityContractBenefits	702	642	1,150
all:ReinsuranceCededInterestCreditedToPolicyholdersAccountBalances	$ 32	$ 32	$ 43

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement
Net income (loss)	$ 296	$ 367	$ 145	$ 120	$ 518	$ 221	$ 389	$ (274)	$ 928	$ 854	$ (1,679)
Other comprehensive income (loss), after-tax Changes in:
Unrealized net capital gains and losses									1,785	3,446	(4,626)
Unrealized foreign currency translation adjustments									23	41	(74)
Unrecognized pension and other postretirement benefit cost									94	(214)	(724)
Other comprehensive income (loss), after-tax									1,902	3,273	(5,424)
Comprehensive income (loss)									$ 2,830	$ 4,127	$ (7,103)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Investments
Fixed income securities, at fair value (amortized cost $78,786 and $81,243)	$ 79,612	$ 78,766
Equity securities, at fair value (cost $4,228 and $4,845)	4,811	5,024
Mortgage loans	6,679	7,935
Limited partnership interests	3,816	2,744
Short-term, at fair value (amortized cost $3,279 and $3,056)	3,279	3,056
Other	2,286	2,308
Total investments	100,483	99,833
Cash	562	612
Premium installment receivables, net	4,839	4,839
Deferred policy acquisition costs	4,769	5,470
Reinsurance recoverables, net	6,552	6,355
Accrued investment income	809	864
Deferred income taxes	784	1,870
Property and equipment, net	921	990
Goodwill	874	875
Other assets	1,605	1,872
Separate Accounts	8,676	9,072
Total assets	130,874	132,652
Liabilities
Reserve for property-liability insurance claims and claims expense	19,468	19,167
Reserve for life-contingent contract benefits	13,482	12,910
Contractholder funds	48,195	52,582
Unearned premiums	9,800	9,822
all:ClaimPaymentsOutstanding	737	742
Other liabilities and accrued expenses	5,564	5,726
Long-term debt	5,908	5,910
Separate Accounts	8,676	9,072
Total liabilities	$ 111,830	$ 115,931
Commitments and Contingent Liabilities (Note 6, 7 and 13)
Equity
Preferred stock, $1 par value, 25 million shares authorized, none issued
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 533 million and 537 million shares outstanding	9	9
Additional capital paid-in	3,176	3,172
Retained income	31,969	31,492
Deferred ESOP expense	(44)	(47)
Treasury stock, at cost (367 million and 363 million shares)	(15,910)	(15,828)
Accumulated Other Comprehensive Income Loss Unrealized Net Capital Gains And Losses Abstract
all:AccumulatedOtherComprehensiveIncomeLossOtherThanTemporaryImpairmentNotCreditLossNetOfTaxAvailableForSaleDebtSecurities	(190)	(441)
all:AccumulatedOtherComprehensiveIncomeLossOtherUnrealizedNetCapitalGainsAndLosses	1,089	(1,072)
all:AccumulatedOtherComprehensiveIncomeLossUnrealizedAdjustmentToDeferredPolicyAcquisitionCostsDeferredSalesInducementCostsAndInsuranceReserves	36	643
Total unrealized net capital gains and losses	935	(870)
Unrealized foreign currency translation adjustments	69	46
Unrecognized pension and other postretirement benefit cost	(1,188)	(1,282)
Total accumulated other comprehensive loss	(184)	(2,106)
Total shareholders' equity	19,016	16,692
Noncontrolling interest	28	29
Total equity	19,044	16,721
Total liabilities and equity	$ 130,874	$ 132,652

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) shares in Millions, $ in Millions	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Fixed income securities, at fair value, amortized cost (in dollars)	$ 78,786	$ 81,243
Equity securities, at fair value, cost (in dollars)	4,228	4,845
all:ShortTermInvestmentsAmortizedCost	$ 3,279	$ 3,056
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	25	25
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	2,000	2,000
Common stock, shares issued	900	900
Common stock, shares outstanding	533	537
Treasury stock, shares	367	363

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2010	Mar. 31, 2010	Dec. 31, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Increase (decrease) in equity
Balance, beginning of year		$ 16,721		$ 12,673	$ 16,721	$ 12,673
Net income (loss)	$ 296	120	$ 518	(274)	928	854	$ (1,679)
Change in unrealized net capital gains and losses					1,785	3,446	(4,626)
Change in unrealized foreign currency translation adjustments					23	41	(74)
Change in unrecognized pension and other postretirement benefit cost					94	(214)	(724)
Balance, end of year	19,044		16,721		19,044	16,721	12,673
Total shareholders' equity
Increase (decrease) in equity
Balance, beginning of year		16,692		12,641	16,692	12,641
Balance, end of year	19,016		16,692		19,016	16,692	12,641
Common stock
Increase (decrease) in equity
Balance, beginning of year		9		9	9	9
Balance, end of year	9		9		9	9	9
Additional capital paid-in
Increase (decrease) in equity
Balance, beginning of year		3,172		3,130	3,172	3,130	3,052
Equity incentive plans activity					4	42	78
Balance, end of year	3,176		3,172		3,176	3,172	3,130
Retained income
Increase (decrease) in equity
Balance, beginning of year		31,492		30,207	31,492	30,207	32,796
Net income (loss)					928	854	(1,679)
Dividends ($0.80, $0.80 and $1.64 per share)					(433)	(432)	(897)
Effects of changing pension plan measurement date							(13)
Cumulative effect of change in accounting principle					(18)	863
Balance, end of year	31,969		31,492		31,969	31,492	30,207
Deferred ESOP expense
Increase (decrease) in equity
Balance, beginning of year		(47)		(49)	(47)	(49)	(55)
Payments					3	2	6
Balance, end of year	(44)		(47)		(44)	(47)	(49)
Treasury stock
Increase (decrease) in equity
Balance, beginning of year		(15,828)		(15,855)	(15,828)	(15,855)	(14,574)
Shares acquired					(166)	(3)	(1,323)
Shares reissued under equity incentive plans, net					84	30	42
Balance, end of year	(15,910)		(15,828)		(15,910)	(15,828)	(15,855)
Accumulated other comprehensive income
Increase (decrease) in equity
Balance, beginning of year		(2,106)		(4,801)	(2,106)	(4,801)	623
Cumulative effect of change in accounting principle					20	(578)
Change in unrealized net capital gains and losses					1,785	3,446	(4,626)
Change in unrealized foreign currency translation adjustments					23	41	(74)
Change in unrecognized pension and other postretirement benefit cost					94	(214)	(724)
Balance, end of year	(184)		(2,106)		(184)	(2,106)	(4,801)
Noncontrolling interest
Increase (decrease) in equity
Balance, beginning of year		$ 29		$ 32	29	32	51
Cumulative effect of change in accounting principle					10
all:ChangeInNoncontrollingInterestOwnership					(14)	(3)	(19)
Noncontrolling gain					3
Balance, end of year	$ 28		$ 29		$ 28	$ 29	$ 32

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Dividends paid (in dollars per share)	$ 0.80	$ 0.80	$ 1.64

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities
Net income (loss)	$ 928	$ 854	$ (1,679)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	94	(91)	(376)
Realized capital gains and losses	827	583	5,090
(Gain) loss on disposition of operations	(11)	(7)	6
Interest credited to contractholder funds	1,807	2,126	2,411
Changes in:
Policy benefits and other insurance reserves	238	(577)	626
Unearned premiums	(40)	(247)	(359)
Deferred policy acquisition costs	(94)	514	141
Premium installment receivables, net	10	26	18
Reinsurance recoverables, net	(265)	(85)	(269)
all:IncreaseDecreaseInIncomeTaxes	200	1,660	(1,864)
Other operating assets and liabilities	(5)	(455)	165
Net cash provided by operating activities	3,689	4,301	3,910
Proceeds From Sale Of Investments Abstract
Fixed income securities	22,881	21,359	22,936
Equity securities	4,349	6,894	9,535
Limited partnership interests	505	369	371
all:ProceedsFromSaleOfMortgageNotesReceivable	124	340	279
Other investments	121	520	171
Proceeds From Collection Of Investments Abstract
Fixed income securities	5,147	5,556	4,269
all:ProceedsFromCollectionOfMortgageNotesReceivable	1,076	1,764	844
Other investments	137	117	98
Investment purchases
Fixed income securities	(25,745)	(29,573)	(14,448)
Equity securities	(3,564)	(8,496)	(9,477)
Limited partnership interests	(1,342)	(784)	(982)
Mortgage loans	(120)	(26)	(500)
Other investments	(181)	(64)	(140)
Change in short-term investments, net	(382)	5,981	(8,283)
Change in other investments, net	(519)	(340)	(474)
Disposition (acquisition) of operations	7	12	(120)
Purchases of property and equipment, net	(162)	(189)	(291)
Net cash provided by investing activities	2,332	3,440	3,788
Cash flows from financing activities
Proceeds from issuance of long-term debt		1,003	20
Repayment of long-term debt	(2)	(752)	(1)
Contractholder fund deposits	2,980	4,150	9,984
Contractholder fund withdrawals	(8,470)	(11,406)	(15,480)
Dividends paid	(430)	(542)	(889)
Treasury stock purchases	(152)	(4)	(1,323)
Shares reissued under equity incentive plans, net	28	3	33
Excess tax benefits on share-based payment arrangements	(7)	(5)	3
Other	(18)	9	(52)
Net cash used in financing activities	(6,071)	(7,544)	(7,705)
all:CashPeriodIncreaseDecrease	(50)	197	(7)
Cash at beginning of year	612	415	422
Cash at end of year	$ 562	$ 612	$ 415

General	12 Months Ended
General	Dec. 31, 2010
General Disclosure Abstract
General	table style="font-size:10pt; font-family:'Times New Roman',times,serif;" tr td p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"b1.nbsp;nbsp;nbsp;nbsp;General /b/font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"bBasis of presentation /b/font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;The accompanying consolidated financial statements include the accounts of The Allstate Corporation and its wholly owned subsidiaries, primarily Allstate Insurance Company ("AIC"), a property-liability insurance company with various property-liability and life and investment subsidiaries, including Allstate Life Insurance Company ("ALIC") (collectively referred to as the "Company" or "Allstate"). These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany accounts and transactions have been eliminated. /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;To conform to the current year presentation, certain amounts in the prior years' consolidated financial statements and notes have been reclassified. /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"bNature of operations /b/font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;Allstate is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Allstate's primary business is the sale of private passenger auto and homeowners insurance. The Company also sells several other personal property and casualty insurance products, life insurance, annuities, voluntary accident and health insurance, funding agreements, and select commercial property and casualty coverages. Allstate primarily distributes its products through exclusive agencies, financial specialists and independent agencies. Certain products are also sold through call centers and the internet. /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;The Allstate Protection segment principally sells private passenger auto and homeowners insurance, with earned premiums accounting for 83% of Allstate's 2010 consolidated revenues. Allstate was the country's second largest insurer for both private passenger auto and homeowners insurance as of Decembernbsp;31, 2009. Allstate Protection, through several companies, is authorized to sell certain property-liability products in all 50nbsp;states, the District of Columbia and Puerto Rico. The Company is also authorized to sell certain insurance products in Canada. For 2010, the top geographic locations for premiums earned by the Allstate Protection segment were New York, California, Texas, Florida and Pennsylvania. No other jurisdiction accounted for more than 5% of premiums earned for Allstate Protection./font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;Allstate has exposure to catastrophes, an inherent risk of the property-liability insurance business, which have contributed, and will continue to contribute, to material year-to-year fluctuations in the Company's results of operations and financial position (see Notenbsp;7). The nature and level of catastrophic loss caused by natural events (high winds, winter storms, tornadoes, hailstorms, wildfires, tropical storms, hurricanes, earthquakes and volcanoes) and man-made events (terrorism and industrial accidents) experienced in any period cannot be predicted and could be material to results of operations and financial position. The Company considers the greatest areas of potential catastrophe losses due to hurricanes to generally be major metropolitan centers in counties along the eastern and gulf coasts of the United States. The Company considers the greate st areas of potential catastrophe losses due to earthquakes and fires following earthquakes to be major metropolitan areas near fault lines in the states of California, Oregon, Washington, South Carolina, Missouri, Kentucky and Tennessee. The Company also has exposure to asbestos, environmental and other discontinued lines claims (see Notenbsp;13). /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;The Allstate Financial segment sells life insurance, retirement and investment products and voluntary accident and health insurance. The principal individual products are interest-sensitive, traditional and variable life insurance; fixed annuities; and voluntary accident and health insurance. The institutional product line, which the Company offers on an opportunistic basis, consists primarily of funding agreements sold to unaffiliated trusts that use them to back medium-term notes issued to institutional and individual investors. Banking products and services have been offered to customers through the Allstate Bank. On Februarynbsp;8, 2011, the Company announced that they reached an agreement to sell substantially all of the deposits of Allstate Bank to Discover Bank and plan to enter into a multi-year distribution and marketing agreement whereby Discover B ank will provide banking products and services to Allstate customers in the future. Allstate Financial does not intend to originate banking products or services after the transaction closes, which is expected to be by mid-year 2011, pending regulatory approval. /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;Allstate Financial, through several companies, is authorized to sell life insurance and retirement products in all 50nbsp;states, the District of Columbia, Puerto Rico, the U.S.nbsp;Virgin Islands and Guam. For 2010, the top geographic locations for statutory premiums and annuity considerations for the Allstate Financial segment were California, Florida, Texas, New York and Nebraska. No other jurisdiction accounted for more than 5% of statutory premiums and annuity considerations for Allstate Financial. Allstate Financial distributes its products to individuals through multiple distribution channels, including Allstate exclusive agencies, which include exclusive financial specialists, independent agents (including master brokerage agencies and workplace enrolling agents), and specialized structured settlement brokers. /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;Allstate has exposure to market risk as a result of its investment portfolio. Market risk is the risk that the Company will incur realized and unrealized net capital losses due to adverse changes in interest rates, credit spreads, equity prices, commodity prices, or currency exchange rates. The Company's primary market risk exposures are to changes in interest rates, credit spreads and equity prices. Interest rate risk is the risk that the Company will incur a loss due to adverse changes in interest rates relative to the interest rate characteristics of its interest bearing assets and liabilities. This risk arises from many of the Company's primary activities, as it invests substantial funds in interest-sensitive assets and issues interest-sensitive liabilities. Interest rate risk includes risks related to changes in U.S.nbsp;Treasury yields and other key ri sk-free reference yields. Credit spread risk is the risk that the Company will incur a loss due to adverse changes in credit spreads. This risk arises from many of the Company's primary activities, as the Company invests substantial funds in spread-sensitive fixed income assets. Equity price risk is the risk that the Company will incur losses due to adverse changes in the general levels of the equity markets. /font/p p style="FONT-FAMILY: arial; TEXT-ALIGN: justify"font size="2"nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;The Company monitors economic and regulatory developments that have the potential to impact its business. The ability of banks to affiliate with insurers may have a material adverse effect on all of the Company's product lines by substantially increasing the number, size and financial strength of potential competitors. Furthermore, federal and state laws and regulations affect the taxation of insurance companies and life insurance and annuity products. Congress from time to time considers legislation that would reduce or eliminate the favorable policyholder tax treatment currently applicable to life insurance and annuities. Congress also considers proposals to reduce the taxation of certain products or investments that may compete with life insurance or annuities. Legislation that increases the taxation on insurance products or reduces the taxation on competing p roducts could lessen the advantage or create a disadvantage for certain of the Company's products making them less competitive. Such proposals, if adopted, could have an adverse effect on the Company's financial position or Allstate Financial's ability to sell such products and could result in the surrender of some existing contracts and policies. In addition, changes in the federal estate tax laws could negatively affect the demand for the types of life insurance used in estate planning. /font/p/td/tr/table

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Summary Of Significant Accounting Policies Disclosure Abstract

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Investments

Fixed income securities include bonds, residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS"), asset-backed securities ("ABS") and redeemable preferred stocks. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available for sale and are carried at fair value. The difference between amortized cost and fair value, net of deferred income taxes, certain life and annuity deferred policy acquisition costs ("DAC"), certain deferred sales inducement costs ("DSI") and certain reserves for life-contingent contract benefits, is reflected as a component of accumulated other comprehensive income. Cash received from calls, principal payments and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Consolidated Statements of Cash Flows.

Equity securities primarily include common stocks, exchange traded funds, non-redeemable preferred stocks and real estate investment trust equity investments. Equity securities are designated as available for sale and are carried at fair value. The difference between cost and fair value, net of deferred income taxes, is reflected as a component of accumulated other comprehensive income.

Mortgage loans are carried at outstanding principal balances, net of unamortized premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. Valuation allowances for impaired loans reduce the carrying value to the fair value of the collateral less costs to sell or the present value of the loan's expected future repayment cash flows discounted at the loan's original effective interest rate.

Investments in limited partnership interests, including interests in private equity/debt funds, real estate funds, hedge funds and tax credit funds, where the Company's interest is so minor that it exercises virtually no influence over operating and financial policies, are accounted for in accordance with the cost method of accounting; otherwise, investments in limited partnership interests are accounted for in accordance with the equity method of accounting.

Short-term investments, including money market funds, commercial paper and other short-term investments, are carried at fair value. Other investments consist primarily of policy loans, derivatives and bank loans. Policy loans are carried at the unpaid principal balances and were $1.14 billion and $1.13 billion as of December 31, 2010 and 2009, respectively. Derivatives are carried at fair value. Bank loans are primarily senior secured corporate loans and are carried at amortized cost.

Investment income consists primarily of interest, dividends, income from certain limited partnership interests and income from certain derivative transactions. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for certain RMBS, CMBS and ABS is determined considering estimated principal repayments obtained from third party data sources and internal estimates. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For beneficial interests in securitized financial assets not of high credit quality, the effective yield is recalculated on a prospective basis. For all other RMBS, CMBS and ABS, the effective yi eld is recalculated on a retrospective basis. For other-than-temporarily impaired fixed income securities, the effective yield method utilizes the difference between the amortized cost basis at impairment and the cash flows expected to be collected. Accrual of income is suspended for other-than-temporarily impaired fixed income securities when the timing and amount of cash flows expected to be received is not reasonably estimable. Accrual of income is suspended for mortgage loans and bank loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on investments on nonaccrual status are generally recorded as a reduction of carrying value. Income from investments in limited partnership interests accounted for utilizing the cost method of accounting is recognized upon receipt of amounts distributed by the partnerships as investment income. Subsequent to October 1, 2008, income from investments in limited partnership interests accounted for utilizing the equity method of accounting ("EMA limited partnerships") is reported in realized capital gains and losses.

Realized capital gains and losses include gains and losses on investment sales, write-downs in value due to other-than-temporary declines in fair value, adjustments to valuation allowances on mortgage loans, periodic changes in the fair value and settlements of certain derivatives including hedge ineffectiveness, and income from EMA limited partnerships. Realized capital gains and losses on investment sales include calls and prepayments and are determined on a specific identification basis. Income from EMA limited partnerships is recognized based on the financial results of the partnership and the Company's proportionate investment interest, and is recognized on a delay due to the availability of the related financial statements. Income recognition on hedge funds is generally on a one month delay and income recognition on private equity/debt funds, real estate fu nds and tax credit funds is generally on a three month delay.

The Company recognizes other-than-temporary impairment losses on fixed income securities in earnings when a security's fair value is less than its amortized cost and the Company has made the decision to sell or it is more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis. Additionally, if the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of a fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss related to other factors recognized in other comprehensive income ("OCI"). The Company recognizes other-than-temporary impairment losses on equity securities in earnings when the decline in fair value is considered other than temporary including when the Company does not have the intent and ability to hold the equity security for a period of time sufficient to recover its cost basis.

Derivative and embedded derivative financial instruments

Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate, equity and commodity), options (including swaptions), interest rate caps and floors, warrants and rights, forward contracts to hedge foreign currency risk, certain investment risk transfer reinsurance agreements, forward sale commitments and certain bond forward purchase commitments. Derivatives required to be separated from the host instrument and accounted for as derivative financial instruments ("subject to bifurcation") are embedded in certain fixed income securities, equity-indexed life and annuity contracts, reinsured variable annuity contracts and certain funding agreements (see Note 6).

All derivatives are accounted for on a fair value basis and reported as other investments, other assets, other liabilities and accrued expenses or contractholder funds. Embedded derivative instruments subject to bifurcation are also accounted for on a fair value basis and are reported together with the host contract. The change in fair value of derivatives embedded in certain fixed income securities and subject to bifurcation is reported in realized capital gains and losses. The change in fair value of derivatives embedded in life and annuity product contracts and subject to bifurcation is reported in life and annuity contract benefits or interest credited to contractholder funds. Cash flows from embedded derivatives requiring bifurcation and derivatives receiving hedge accounting are reported consistently with the host contracts and hedged risks, respectively, w ithin the Consolidated Statements of Cash Flows. Cash flows from other derivatives are reported in cash flows from investing activities within the Consolidated Statements of Cash Flows.

When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges. The hedged item may be either all or a specific portion of a recognized asset, liability or an unrecognized firm commitment attributable to a particular risk for fair value hedges. At the inception of the hedge, the Company formally documents the hedging relationship and risk management objective and strategy. The documentation identifies the hedging instrument, the hedged item, the nature of the risk being hedged and the methodology used to assess the effectiveness of the hedging instrument in offsetting the exposure to changes in the hedged item's fair value attributable to the hedged risk. For a cash flow hedge, this documentation includes the exposure to changes in th e variability in cash flows attributable to the hedged risk. The Company does not exclude any component of the change in fair value of the hedging instrument from the effectiveness assessment. At each reporting date, the Company confirms that the hedging instrument continues to be highly effective in offsetting the hedged risk. Ineffectiveness in fair value hedges and cash flow hedges, if any, is reported in realized capital gains and losses.

Fair value hedges For hedging instruments used in fair value hedges, when the hedged items are investment assets or a portion thereof, the change in fair value of the derivatives is reported in net investment income, together with the change in the fair value of the hedged items. The change in fair value of hedging instruments used in fair value hedges of contractholder funds liabilities or a portion thereof is reported in interest credited to contractholder funds, together with the change in the fair value of the hedged items. Accrued periodic settlements on swaps are reported together with the changes in fair value of the swaps in net investment income or interest credited to contractholder funds. The amortized cost for fixed income securities, the carrying value for mor tgage loans or the carrying value of the hedged liability is adjusted for the change in the fair value of the hedged risk.

Cash flow hedges For hedging instruments used in cash flow hedges, the changes in fair value of the derivatives representing the effective portion of the hedge are reported in accumulated other comprehensive income. Amounts are reclassified to net investment income, realized capital gains and losses or interest expense as the hedged or forecasted transaction affects net income. Accrued periodic settlements on derivatives used in cash flow hedges are reported in net investment income. The amount reported in accumulated other comprehensive income for a hedged transaction is limited to the lesser of the cumulative gain or loss on the derivative less the amount reclassified to net income, or the cumulative gain or loss on the derivative needed to offset the cumulative change i n the expected future cash flows on the hedged transaction from inception of the hedge less the derivative gain or loss previously reclassified from accumulated other comprehensive income to net income. If the Company expects at any time that the loss reported in accumulated other comprehensive income would lead to a net loss on the combination of the hedging instrument and the hedged transaction which may not be recoverable, a loss is recognized immediately in realized capital gains and losses. If an impairment loss is recognized on an asset or an additional obligation is incurred on a liability involved in a hedge transaction, any offsetting gain in accumulated other comprehensive income is reclassified and reported together with the impairment loss or recognition of the obligation.

Termination of hedge accounting If, subsequent to entering into a hedge transaction, the derivative becomes ineffective (including if the hedged item is sold or otherwise extinguished, the occurrence of a hedged forecasted transaction is no longer probable or the hedged asset becomes other-than-temporarily impaired), the Company may terminate the derivative position. The Company may also terminate derivative instruments or redesignate them as non-hedge as a result of other events or circumstances. If the derivative instrument is not terminated when a fair value hedge is no longer effective, the future gains and losses recognized on the derivative are reported in realized capital gains and losses. When a fair value hedge is no longer effective, is redesignated as non-hedge or when the derivative has been terminated, the fair value gain or loss on the hedged asset, liability or portion thereof which has already been recognized in income while the hedge was in place and used to adjust the amortized cost for fixed income securities, the carrying value for mortgage loans or the carrying value of the hedged liability, is amortized over the remaining life of the hedged asset, liability or portion thereof, and reflected in net investment income or interest credited to contractholder funds beginning in the period that hedge accounting is no longer applied. If the hedged item in a fair value hedge is an asset which has become other-than-temporarily impaired, the adjustment made to the amortized cost for fixed income securities or the carrying value for mortgage loans is subject to the accounting policies applied to other-than-temporarily impaired assets.

When a derivative instrument used in a cash flow hedge of an existing asset or liability is no longer effective or is terminated, the gain or loss recognized on the derivative is reclassified from accumulated other comprehensive income to net income as the hedged risk impacts net income. If the derivative instrument is not terminated when a cash flow hedge is no longer effective, the future gains and losses recognized on the derivative are reported in realized capital gains and losses. When a derivative instrument used in a cash flow hedge of a forecasted transaction is terminated because it is probable the forecasted transaction will not occur, the gain or loss recognized on the derivative is immediately reclassified from accumulated other comprehensive income to realized capital gains and losses in the period that hedge accounting is no longer applied.

Non-hedge derivative financial instruments The Company has certain derivatives for which hedge accounting is not applied. The income statement effects, including fair value gains and losses and accrued periodic settlements, of these derivatives are reported on the Consolidated Statements of Operations either in realized capital gains and losses or in a single line item together with the results of the associated asset or liability for which risks are being managed.

Securities loaned

The Company's business activities include securities lending transactions, which are used primarily to generate net investment income. The proceeds received in conjunction with securities lending transactions are reinvested in short-term investments or fixed income securities. These transactions are short-term in nature, usually 30 days or less.

The Company receives cash collateral for securities loaned in an amount generally equal to 102% and 105% of the fair value of domestic and foreign securities, respectively, and records the related obligations to return the collateral in other liabilities and accrued expenses. The carrying value of these obligations approximates fair value because of their relatively short-term nature. The Company monitors the market value of securities loaned on a daily basis and obtains additional collateral as necessary under the terms of the agreements to mitigate counterparty credit risk. The Company maintains the right and ability to redeem the securities loaned on short notice. Substantially all of the Company's securities loaned are placed with large banks.

Recognition of premium revenues and contract charges, and related benefits and interest credited

Property-liability premiums are deferred and earned on a pro-rata basis over the terms of the policies, typically periods of six or twelve months. The portion of premiums written applicable to the unexpired terms of the policies is recorded as unearned premiums. Premium installment receivables, net, represent premiums written and not yet collected, net of an allowance for uncollectible premiums. The Company regularly evaluates premium installment receivables and adjusts its valuation allowance as appropriate. The valuation allowance for uncollectible premium installment receivables was $75 million and $77 million as of December 31, 2010 and 2009, respectively.

Traditional life insurance products consist principally of products with fixed and guaranteed premiums and benefits, primarily term and whole life insurance products. Premiums from these products are recognized as revenue when due from policyholders. Benefits are reflected in life and annuity contract benefits and recognized in relation to premiums, so that profits are recognized over the life of the policy.

Immediate annuities with life contingencies, including certain structured settlement annuities, provide insurance protection over a period that extends beyond the period during which premiums are collected. Premiums from these products are recognized as revenue when received at the inception of the contract. Benefits and expenses are recognized in relation to premiums. Profits from these policies come from investment income, which is recognized over the life of the contract.

Interest-sensitive life contracts, such as universal life and single premium life, are insurance contracts whose terms are not fixed and guaranteed. The terms that may be changed include premiums paid by the contractholder, interest credited to the contractholder account balance and contract charges assessed against the contractholder account balance. Premiums from these contracts are reported as contractholder fund deposits. Contract charges consist of fees assessed against the contractholder account balance for the cost of insurance (mortality risk), contract administration and surrender of the contract prior to contractually specified dates. These contract charges are recognized as revenue when assessed against the contractholder account balance. Life and annuity contract benefits include life-contingent benefit payments in excess of the contractholder account balance.

Contracts that do not subject the Company to significant risk arising from mortality or morbidity are referred to as investment contracts. Fixed annuities, including market value adjusted annuities, equity-indexed annuities and immediate annuities without life contingencies, and funding agreements (primarily backing medium-term notes) are considered investment contracts. Consideration received for such contracts is reported as contractholder fund deposits. Contract charges for investment contracts consist of fees assessed against the contractholder account balance for maintenance, administration and surrender of the contract prior to contractually specified dates, and are recognized when assessed against the contractholder account balance.

Interest credited to contractholder funds represents interest accrued or paid on interest-sensitive life contracts and investment contracts. Crediting rates for certain fixed annuities and interest-sensitive life contracts are adjusted periodically by the Company to reflect current market conditions subject to contractually guaranteed minimum rates. Crediting rates for indexed annuities and indexed funding agreements are generally based on a specified interest rate index, such as LIBOR, or an equity index, such as the Standard & Poor's ("S&P") 500 Index. Interest credited also includes amortization of DSI expenses. DSI is amortized into interest credited using the same method used to amortize DAC.

Contract charges for variable life and variable annuity products consist of fees assessed against the contractholder account balances for contract maintenance, administration, mortality, expense and surrender of the contract prior to contractually specified dates. Contract benefits incurred for variable annuity products include guaranteed minimum death, income, withdrawal and accumulation benefits. Substantially all of the Company's variable annuity business is ceded through reinsurance agreements and the contract charges and contract benefits related thereto are reported net of reinsurance ceded.

Deferred policy acquisition and sales inducement costs

Costs that vary with and are primarily related to acquiring property-liability insurance, life insurance and investment contracts are deferred and recorded as DAC. These costs are principally agents' and brokers' remuneration, premium taxes, inspection costs, and certain underwriting and direct mail solicitation expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on annuity and interest-sensitive life contracts. These sales inducements are primarily in the form of additional credits to the customer's account balance or enhancements to interest credited for a specified period which are in excess of the rates currently being credited to similar contracts without sales inducements. All other acquisition costs are expensed as incurred and included in operating costs and expen ses on the Consolidated Statements of Operations. DAC associated with property-liability insurance is amortized into income as premiums are earned, typically over periods of six or twelve months, and is included in amortization of deferred policy acquisition costs on the Consolidated Statements of Operations. Future investment income is considered in determining the recoverability of DAC. Amortization of DAC associated with life insurance and investment contracts is included in amortization of deferred policy acquisition costs on the Consolidated Statements of Operations and is described in more detail below. DSI is amortized into income using the same methodology and assumptions as DAC and is included in interest credited to contractholder funds on the Consolidated Statements of Operations. DAC and DSI are periodically reviewed for recoverability and adjusted if necessary.

For traditional life insurance, DAC is amortized over the premium paying period of the related policies in proportion to the estimated revenues on such business. Assumptions used in the amortization of DAC and reserve calculations are established at the time the policy is issued and are generally not revised during the life of the policy. Any deviations from projected business in force resulting from actual policy terminations differing from expected levels and any estimated premium deficiencies may result in a change to the rate of amortization in the period such events occur. Generally, the amortization periods for these policies approximates the estimated lives of the policies.

For interest-sensitive life, fixed annuities and other investment contracts, DAC and DSI are amortized in proportion to the incidence of the total present value of gross profits, which includes both actual historical gross profits ("AGP") and estimated future gross profits ("EGP") expected to be earned over the estimated lives of the contracts. The amortization is net of interest on the prior period DAC balance using rates established at the inception of the contracts. Actual amortization periods generally range from 15-30 years; however, incorporating estimates of the rate of customer surrenders, partial withdrawals and deaths generally results in the majority of the DAC being amortized during the surrender charge period, which is typically 10-20 years for interest-sensitive life and 5-10 years for fixed annuities. The cumulative DAC a nd DSI amortization is reestimated and adjusted by a cumulative charge or credit to results of operations when there is a difference between the incidence of actual versus expected gross profits in a reporting period or when there is a change in total EGP. When DAC or DSI amortization or a component of gross profits for a quarterly period is potentially negative (which would result in an increase of the DAC or DSI balance) as a result of negative AGP, the specific facts and circumstances surrounding the potential negative amortization are considered to determine whether it is appropriate for recognition in the consolidated financial statements. Negative amortization is only recorded when the increased DAC or DSI balance is determined to be recoverable based on facts and circumstances. Recapitalization of DAC and DSI is limited to the originally deferred costs plus interest.

AGP and EGP consist primarily of the following components: contract charges for the cost of insurance less mortality costs and other benefits; investment income and realized capital gains and losses less interest credited; and surrender and other contract charges less maintenance expenses. The principal assumptions for determining the amount of EGP are investment returns, including capital gains and losses on assets supporting contract liabilities, interest crediting rates to contractholders, and the effects of persistency, mortality, expenses, and hedges if applicable. For products whose supporting investments are exposed to capital losses in excess of the Company's expectations which may cause periodic AGP to become temporarily negative, EGP and AGP utilized in DAC and DSI amortization may be modified to exclude the excess capital losses.