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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2016	Jan. 31, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	ALLSTATE CORP
Entity Central Index Key	0000899051
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 25,630
Entity Common Stock, Shares Outstanding		365,129,091
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues
Property-liability insurance premiums (net of reinsurance ceded of $987, $1,006 and $1,030)	$ 31,307	$ 30,309	$ 28,929
Life and annuity premiums and contract charges (net of reinsurance ceded of $309, $332 and $416)	2,275	2,158	2,157
Net investment income	3,042	3,156	3,459
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(313)	(452)	(242)
OTTI losses reclassified to (from) other comprehensive income	10	36	(3)
Net OTTI losses recognized in earnings	(303)	(416)	(245)
Sales and other realized capital gains and losses	213	446	939
Total realized capital gains and losses	(90)	30	694
Revenues	36,534	35,653	35,239
Costs and expenses
Property-liability insurance claims and claims expense (net of reinsurance ceded of $1,116, $602 and $1,393)	22,221	21,034	19,428
Life and annuity contract benefits (net of reinsurance ceded of $208, $219 and $356)	1,857	1,803	1,765
Interest credited to contractholder funds (net of reinsurance ceded of $26, $25 and $26)	726	761	919
Amortization of deferred policy acquisition costs	4,550	4,364	4,135
Operating costs and expenses	4,106	4,081	4,341
Restructuring and related charges	30	39	18
Loss on extinguishment of debt	0	0	1
Interest expense	295	292	322
Total costs and expenses	33,785	32,374	30,929
Gain (loss) on disposition of operations	5	3	(74)
Income from operations before income tax expense	2,754	3,282	4,236
Income tax expense	877	1,111	1,386
Net income	1,877	2,171	2,850
Preferred stock dividends	116	116	104
Net income applicable to common shareholders	$ 1,761	$ 2,055	$ 2,746
Earnings per common share:
Net income applicable to common shareholders earnings per common share - Basic (in dollars per share)	$ 4.72	$ 5.12	$ 6.37
Weighted average common shares - Basic (in shares)	372.8	401.1	431.4
Net income applicable to common shareholders earnings per common share - Diluted (in dollars per share)	$ 4.67	$ 5.05	$ 6.27
Weighted average common shares - Diluted (in shares)	377.3	406.8	438.2
Cash dividends declared per common share (in dollars per share)	$ 1.32	$ 1.20	$ 1.12

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property-liability insurance premiums earned	$ 1,296	$ 1,338	$ 1,446
Property-liability insurance claims and claims expense
Reinsurance ceded amount	1,116	602	1,393
Life and annuity contract benefits
Reinsurance ceded amount	208	219	356
Interest credited to contractholder funds
Reinsurance ceded amount	26	25	26
Property-liability insurance premiums earned
Property-liability insurance premiums earned	987	1,006	1,030
Life and annuity premiums and contract charges
Life and annuity premiums and contract charges	$ 309	$ 332	$ 416

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 1,877	$ 2,171	$ 2,850
Changes in:
Unrealized net capital gains and losses	433	(1,306)	280
Unrealized foreign currency translation adjustments	10	(58)	(40)
Unrecognized pension and other postretirement benefit cost	(104)	48	(725)
Other comprehensive income (loss), after-tax	339	(1,316)	(485)
Comprehensive income	$ 2,216	$ 855	$ 2,365

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Investments
Fixed income securities, at fair value (amortized cost $56,576 and $57,201)	$ 57,839	$ 57,948
Equity securities, at fair value (cost $5,157 and $4,806)	5,666	5,082
Mortgage loans	4,486	4,338
Limited partnership interests	5,814	4,874
Short-term, at fair value (amortized cost $4,288 and $2,122)	4,288	2,122
Other	3,706	3,394
Total investments	81,799	77,758
Cash	436	495
Premium installment receivables, net	5,597	5,544
Deferred policy acquisition costs	3,954	3,861
Reinsurance recoverables, net	8,745	8,518
Accrued investment income	567	569
Property and equipment, net	1,065	1,024
Goodwill	1,219	1,219
Other assets	1,835	2,010
Separate Accounts	3,393	3,658
Total assets	108,610	104,656
Liabilities
Reserve for property-liability insurance claims and claims expense	25,250	23,869
Reserve for life-contingent contract benefits	12,239	12,247
Contractholder funds	20,260	21,295
Unearned premiums	12,583	12,202
Claim payments outstanding	879	842
Deferred income taxes	487	90
Other liabilities and accrued expenses	6,599	5,304
Long-term debt	6,347	5,124
Separate Accounts	3,393	3,658
Total liabilities	88,037	84,631
Commitments and Contingent Liabilities (Note 7, 8 and 14)
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 72.2 thousand issued and outstanding, $1,805 aggregate liquidation preference	1,746	1,746
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 366 million and 381 million shares outstanding	9	9
Additional capital paid-in	3,303	3,245
Retained income	40,678	39,413
Deferred ESOP expense	(6)	(13)
Treasury stock, at cost (534 million and 519 million shares)	(24,741)	(23,620)
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	57	56
Other unrealized net capital gains and losses	1,091	608
Unrealized adjustment to DAC, DSI and insurance reserves	(95)	(44)
Total unrealized net capital gains and losses	1,053	620
Unrealized foreign currency translation adjustments	(50)	(60)
Unrecognized pension and other postretirement benefit cost	(1,419)	(1,315)
Total accumulated other comprehensive loss	(416)	(755)
Total shareholders’ equity	20,573	20,025
Total liabilities and shareholders’ equity	$ 108,610	$ 104,656

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Fixed income securities, at fair value, amortized cost (in dollars)	$ 56,576	$ 57,201
Equity securities, at fair value, cost (in dollars)	5,157	4,806
Short-term, at fair value, amortized cost (in dollars)	$ 4,288	$ 2,122
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	72,200	72,200
Preferred stock, shares outstanding (in shares)	72,200	72,200
Preferred stock, shares aggregate liquidation preference (in dollars)	$ 1,805	$ 1,805
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	900,000,000	900,000,000
Common stock, shares outstanding (in shares)	366,000,000	381,000,000
Treasury stock, shares (in shares)	534,000,000	519,000,000

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Total shareholders' equity	Preferred Stock	Preferred stock additional capital paid-in	Common stock	Additional capital paid-in	Retained income	Deferred ESOP expense	Treasury stock	Accumulated other comprehensive income (loss)
Preferred stock, par value (in dollars per share)			$ 0
Balance, beginning of year at Dec. 31, 2013				$ 780		$ 3,143	$ 35,580	$ (31)	$ (19,047)	$ 1,046
Increase (decrease) in equity
Preferred stock issuance				966
Equity incentive plans activity						56
Net income	$ 2,850						2,850
Dividends on common stock							(484)
Dividends on preferred stock							(104)
Payments								8
Shares acquired									(2,306)
Shares reissued under equity incentive plans, net									323
Change in unrealized net capital gains and losses	280									280
Change in unrealized foreign currency translation adjustments	(40)									(40)
Change in unrecognized pension and other postretirement benefit cost	(725)									(725)
Balance, end of year at Dec. 31, 2014		$ 22,304		1,746	$ 9	3,199	37,842	(23)	(21,030)	561
Preferred stock, par value (in dollars per share)			0
Increase (decrease) in equity
Preferred stock issuance				0
Equity incentive plans activity						46
Net income	2,171						2,171
Dividends on common stock							(484)
Dividends on preferred stock							(116)
Payments								10
Shares acquired									(2,804)
Shares reissued under equity incentive plans, net									214
Change in unrealized net capital gains and losses	(1,306)									(1,306)
Change in unrealized foreign currency translation adjustments	(58)									(58)
Change in unrecognized pension and other postretirement benefit cost	$ 48									48
Balance, end of year at Dec. 31, 2015		20,025		1,746	9	3,245	39,413	(13)	(23,620)	(755)
Preferred stock, par value (in dollars per share)	$ 1		$ 0
Increase (decrease) in equity
Preferred stock issuance				0
Equity incentive plans activity						58
Net income	$ 1,877						1,877
Dividends on common stock							(496)
Dividends on preferred stock							(116)
Payments								7
Shares acquired									(1,341)
Shares reissued under equity incentive plans, net									220
Change in unrealized net capital gains and losses	433									433
Change in unrealized foreign currency translation adjustments	10									10
Change in unrecognized pension and other postretirement benefit cost	$ (104)									(104)
Balance, end of year at Dec. 31, 2016		$ 20,573		$ 1,746	$ 9	$ 3,303	$ 40,678	$ (6)	$ (24,741)	$ (416)
Preferred stock, par value (in dollars per share)	$ 1

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income	$ 1,877	$ 2,171	$ 2,850
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	382	371	366
Realized capital gains and losses	90	(30)	(694)
Loss on extinguishment of debt	0	0	1
(Gain) loss on disposition of operations	(5)	(3)	74
Interest credited to contractholder funds	726	761	919
Changes in:
Policy benefits and other insurance reserves	631	473	541
Unearned premiums	362	638	766
Deferred policy acquisition costs	(165)	(239)	(220)
Premium installment receivables, net	(42)	(134)	(257)
Reinsurance recoverables, net	(264)	(178)	(1,068)
Income taxes	417	(119)	205
Other operating assets and liabilities	(16)	(95)	(247)
Net cash provided by operating activities	3,993	3,616	3,236
Proceeds from sales
Fixed income securities	25,061	28,693	34,609
Equity securities	5,546	3,754	6,755
Limited partnership interests	881	1,101	1,473
Mortgage loans	0	6	10
Other investments	262	545	406
Investment collections
Fixed income securities	4,533	4,432	3,736
Mortgage loans	501	538	1,106
Other investments	421	293	191
Investment purchases
Fixed income securities	(27,990)	(30,758)	(38,759)
Equity securities	(5,950)	(4,960)	(5,443)
Limited partnership interests	(1,450)	(1,343)	(1,398)
Mortgage loans	(646)	(687)	(501)
Other investments	(885)	(902)	(972)
Change in short-term investments, net	(2,446)	385	272
Change in other investments, net	(51)	(52)	46
Purchases of property and equipment, net	(313)	(303)	(288)
Disposition (acquisition) of operations	0	0	378
Net cash (used in) provided by investing activities	(2,526)	742	1,621
Cash flows from financing activities
Proceeds from issuance of long-term debt	1,236	0	0
Repayments of long-term debt	(17)	(20)	(1,006)
Proceeds from issuance of preferred stock	0	0	965
Contractholder fund deposits	1,049	1,052	1,184
Contractholder fund withdrawals	(2,087)	(2,327)	(3,446)
Dividends paid on common stock	(486)	(483)	(477)
Dividends paid on preferred stock	(116)	(116)	(87)
Treasury stock purchases	(1,337)	(2,808)	(2,301)
Shares reissued under equity incentive plans, net	164	130	266
Excess tax benefits on share-based payment arrangements	32	45	41
Other	36	7	(14)
Net cash used in financing activities	(1,526)	(4,520)	(4,875)
Net decrease in cash	(59)	(162)	(18)
Cash at beginning of year	495	657	675
Cash at end of year	$ 436	$ 495	$ 657

General	12 Months Ended
General	Dec. 31, 2016
General
General	General Basis of presentation The accompanying consolidated financial statements include the accounts of The Allstate Corporation (the “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. 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. Nature of operations Allstate is engaged, principally in the United States, in the property-liability insurance and life insurance 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, select commercial property and casualty coverages, life insurance and voluntary accident and health insurance. Allstate primarily distributes its products through exclusive agencies, financial specialists, independent agencies, contact centers and the internet. The Allstate Protection segment principally sells private passenger auto and homeowners insurance, with earned premiums accounting for 86% of Allstate’s 2016 consolidated revenues. Allstate was the country’s second largest personal property and casualty insurer as of December 31, 2015. Allstate Protection, through several companies, is authorized to sell certain property-liability products in all 50 states, the District of Columbia and Puerto Rico. The Company is also authorized to sell certain insurance products in Canada. For 2016, the top 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 premiums earned for Allstate Protection. 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 Note 8). 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 greatest 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 Note 14). The Allstate Financial segment sells traditional, interest-sensitive and variable life insurance and voluntary accident and health insurance products. The Company previously offered and continues to have in force fixed annuities such as deferred and immediate annuities. The Company also previously offered institutional products consisting of funding agreements sold to unaffiliated trusts that used them to back medium-term notes. There are no institutional products outstanding as of December 31, 2016. Allstate Financial, through several companies, is authorized to sell life insurance and retirement products in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam. Voluntary accident and health insurance products are also sold in Canada. For 2016, the top geographic locations for direct statutory premiums and annuity considerations for the Allstate Financial segment were New York, Texas, Florida and California. No other jurisdiction accounted for more than 5% of direct statutory premiums and annuity considerations for Allstate Financial. Allstate Financial distributes its products through Allstate exclusive agencies and exclusive financial specialists, and workplace enrolling independent agents. 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 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. Treasury yields and other key risk-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. The Company monitors economic and regulatory developments that have the potential to impact its business. Federal and state laws and regulations affect the taxation of insurance companies and life insurance products. Congress and various state legislatures from time to time consider legislation that would reduce or eliminate the favorable policyholder tax treatment currently applicable to life insurance. Congress and various state legislatures also consider proposals to reduce the taxation of certain products or investments that may compete with life insurance. Legislation that increases the taxation on insurance products or reduces the taxation on competing products 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.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Investments

Fixed income securities include bonds, asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) 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 and related life and annuity deferred policy acquisition costs (“DAC”), deferred sales inducement costs (“DSI”) and reserves for life-contingent contract benefits, is reflected as a component of accumulated other comprehensive income. Cash received from calls 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 and mutual 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 unpaid 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.

Investments in limited partnership interests include interests in private equity funds and co-investments, real estate funds and joint ventures, and other funds. Where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, investments in limited partnership interests are accounted for in accordance with the cost method of accounting; all other investments in limited partnership interests are accounted for in accordance with the equity method of accounting (“EMA”).

Short-term investments, including commercial paper, U.S. Treasury bills, money market funds and other short-term investments, are carried at fair value. Other investments primarily consist of bank loans, policy loans, agent loans, real estate and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Policy loans are carried at unpaid principal balances and were $904 million and $905 million as of December 31, 2016 and 2015, respectively. Agent loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances and unamortized deferred fees or costs. Real estate is carried at cost less accumulated depreciation. Derivatives are carried at fair value.

Investment income primarily consists of interest, dividends, income from limited partnership interests, rental income from real estate, 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 ABS, RMBS and CMBS is determined considering estimated pay-downs, including prepayments, 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 ABS, RMBS and CMBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is recalculated on a prospective basis. 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, bank loans and agent 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 cost method limited partnership interests is recognized upon receipt of amounts distributed by the partnerships. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ net income, including unrealized gains and losses, and is generally recognized on a three month delay due to the availability of the related financial statements.

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 and agent loans, periodic changes in fair value and settlements of certain derivatives including hedge ineffectiveness and valuation changes in public securities held in certain limited partnerships. Realized capital gains and losses on investment sales are determined on a specific identification basis.

Derivative and embedded derivative financial instruments

Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate and equity), options (including swaptions), interest rate caps, warrants and rights, foreign currency swaps, foreign currency forwards, certain investment risk transfer reinsurance agreements, 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.

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 subject to bifurcation and derivatives receiving hedge accounting are reported consistently with the host contracts and hedged risks, respectively, within 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 the 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 The change in fair value of hedging instruments used in fair value hedges of investment assets or a portion thereof is reported in net investment income, together with the change in 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 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 mortgage loans or the carrying value of the hedged liability is adjusted for the change in 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 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 income, or the cumulative gain or loss on the derivative needed to offset the cumulative change in 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 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 that 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 income as the hedged risk impacts 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 For derivatives for which hedge accounting is not applied, the income statement effects, including fair value gains and losses and accrued periodic settlements, are reported 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 repossess the securities loaned on short notice.

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 $84 million and $90 million as of December 31, 2016 and 2015, respectively.

Traditional life insurance products consist principally of products with fixed and guaranteed premiums and benefits, primarily term and whole life insurance products. Voluntary accident and health insurance products are expected to remain in force for an extended period and therefore are primarily classified as long-duration contracts. Premiums from these products are recognized as revenue when due from policyholders. Benefits are reflected in life and annuity contract benefits and recognized over the life of the policy in relation to premiums.

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 primarily 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 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 life and annuities and indexed funding agreements are generally based on a specified interest rate index or an equity index, such as the Standard & Poor’s 500 Index (“S&P 500”). 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 are related directly to the successful acquisition of new or renewal property-liability insurance, life insurance and investment contracts are deferred and recorded as DAC. These costs are principally agents’ and brokers’ remuneration, premium taxes and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on fixed 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 expenses. 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. DAC associated with property-liability insurance is periodically reviewed for recoverability and adjusted if necessary. 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 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.

For traditional life and voluntary accident and health 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. The Company periodically reviews the recoverability of DAC for these policies on an aggregate basis using actual experience. The Company aggregates traditional life insurance products and immediate annuities with life contingencies in one analysis, and voluntary accident and health insurance in a separate analysis. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required.

For interest-sensitive life insurance and fixed annuities, 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 and DSI amortization is reestimated and adjusted by a cumulative charge or credit to income 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 primarily consist 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 mortality, persistency, expenses, investment returns, including capital gains and losses on assets supporting contract liabilities, interest crediting rates to contractholders, and the effects of any hedges. 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.

The Company performs quarterly reviews of DAC and DSI recoverability for interest-sensitive life and fixed annuity contracts in the aggregate using current assumptions. If a change in the amount of EGP is significant, it could result in the unamortized DAC or DSI not being recoverable, resulting in a charge which is included as a component of amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively.

The DAC and DSI balances presented include adjustments to reflect the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized capital gains or losses in the respective product investment portfolios were actually realized. The adjustments are recorded net of tax in accumulated other comprehensive income. DAC, DSI and deferred income taxes determined on unrealized capital gains and losses and reported in accumulated other comprehensive income recognize the impact on shareholders’ equity consistently with the amounts that would be recognized in the income statement on realized capital gains and losses.

Customers of the Company may exchange one insurance policy or investment contract for another offered by the Company, or make modifications to an existing investment, life or property-liability contract issued by the Company. These transactions are identified as internal replacements for accounting purposes. Internal replacement transactions determined to result in replacement contracts that are substantially unchanged from the replaced contracts are accounted for as continuations of the replaced contracts. Unamortized DAC and DSI related to the replaced contracts continue to be deferred and amortized in connection with the replacement contracts. For interest-sensitive life and investment contracts, the EGP of the replacement contracts are treated as a revision to the EGP of the replaced contracts in the determination of amortization of DAC and DSI. For traditional life and property-liability insurance policies, any changes to unamortized DAC that result from replacement contracts are treated as prospective revisions. Any costs associated with the issuance of replacement contracts are characterized as maintenance costs and expensed as incurred. Internal replacement transactions determined to result in a substantial change to the replaced contracts are accounted for as an extinguishment of the replaced contracts, and any unamortized DAC and DSI related to the replaced contracts are eliminated with a corresponding charge to amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively.

The costs assigned to the right to receive future cash flows from certain business purchased from other insurers are also classified as DAC in the Consolidated Statements of Financial Position. The costs capitalized represent the present value of future profits expected to be earned over the lives of the contracts acquired. These costs are amortized as profits emerge over the lives of the acquired business and are periodically evaluated for recoverability. The present value of future profits was $53 million and $58 million as of December 31, 2016 and 2015, respectively. Amortization expense of the present value of future profits was $5 million, $8 million and $13 million in 2016, 2015 and 2014, respectively.

Reinsurance

In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. The Company also participates in various reinsurance mechanisms, including industry pools and facilities, which are backed by the financial resources of the property-liability insurance company market participants. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverables. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. For catastrophe coverage, the cost of reinsurance premiums is recognized ratably over the contract period to the extent coverage remains available. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers, including their activities with respect to claim settlement practices and commutations, and establishes allowances for uncollectible reinsurance as appropriate.

Goodwill

Goodwill represents the excess of amounts paid for acquiring businesses over the fair value of the net assets acquired. The goodwill balances were $823 million and $396 million as of both December 31, 2016 and December 31, 2015 for the Allstate Protection segment and the Allstate Financial segment, respectively. The Company’s reporting units are equivalent to its reporting segments, Allstate Protection and Allstate Financial. Goodwill is allocated to reporting units based on which unit is expected to benefit from the synergies of the business combination. Goodwill is not amortized but is tested for impairment at least annually. The Company performs its annual goodwill impairment testing during the fourth quarter of each year based upon data as of the close of the third quarter. The Company also reviews goodwill for impairment whenever events or changes in circumstances, such as deteriorating or adverse market conditions, indicate that it is more likely than not that the carrying amount of goodwill may exceed its implied fair value.

To estimate the fair value of its reporting units, the Company may utilize a combination of widely accepted valuation techniques including a stock price and market capitalization analysis, discounted cash flow calculations and peer company price to earnings multiples analysis. The stock price and market capitalization analysis takes into consideration the quoted market price of the Company’s outstanding common stock and includes a control premium, derived from historical insurance industry acquisition activity, in determining the estimated fair value of the consolidated entity before allocating that fair value to individual reporting units. The discounted cash flow analysis utilizes long term assumptions for revenue growth, capital growth, earnings projections including those used in the Company’s strategic plan, and an appropriate discount rate. The peer company price to earnings multiples analysis takes into consideration the price to earnings multiples of peer companies for each reporting unit and estimated income from the Company’s strategic plan.

Goodwill impairment evaluations indicated no impairment as of December 31, 2016 or 2015.

Property and equipment

Property and equipment is carried at cost less accumulated depreciation. Included in property and equipment are capitalized costs related to computer software licenses and software developed for internal use. These costs generally consist of certain external payroll and payroll related costs. Property and equipment depreciation is calculated using the straight-line method over the estimated useful lives of the assets, generally 3 to 10 years for equipment and 40 years for real property. Depreciation expense is reported in operating costs and expenses. Accumulated depreciation on property and equipment was $2.16 billion and $2.09 billion as of December 31, 2016 and 2015, respectively. Depreciation expense on property and equipment was $267 million, $255 million and $228 million in 2016, 2015 and 2014, respectively. The Company reviews its property and equipment for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Income taxes

The income tax provision is calculated under the liability method. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are DAC, unearned premiums, unrealized capital gains and losses and insurance reserves. A deferred tax asset valuation allowance is established when there is uncertainty that such assets will be realized.

Reserve for property-liability insurance claims and claims expense

The reserve for property-liability insurance claims and claims expense is the estimate of amounts necessary to settle all reported and unreported claims for the ultimate cost of insured property-liability losses, based upon the facts of each case and the Company’s experience with similar cases. Estimated amounts of salvage and subrogation are deducted from the reserve for claims and claims expense. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserve estimates are primarily derived using an actuarial estimation process in which historical loss patterns are applied to actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an accident or report year to create an estimate of how losses are likely to develop over time. Development factors are calculated quarterly and periodically throughout the year for data elements such as claims reported and settled, paid losses, and paid losses combined with case reserves. The historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims. Reserve estimates are regularly reviewed and updated, using the most current information available. Any resulting reestimates are reflected in current results of operations.

Reserve for life-contingent contract benefits

The reserve for life-contingent contract benefits payable under insurance policies, including traditional life insurance, life-contingent immediate annuities and voluntary accident and health insurance products, is computed on the basis of long-term actuarial assumptions of future investment yields, mortality, morbidity, policy terminations and expenses. These assumptions, which for traditional life insurance are applied using the net level premium method, include provisions for adverse deviation and generally vary by characteristics such as type of coverage, year of issue and policy duration. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. The Company also reviews these policies on an aggregate basis for circumstances where projected profits would be recognized in early years followed by projected losses in later years. If this circumstance exists, the Company will accrue a liability, during the period of profits, to offset the losses at such time as the future losses are expected to commence using a method updated prospectively over time. To the extent that unrealized gains on fixed income securities would result in a premium deficiency if those gains were realized, the related increase in reserves for certain immediate annuities with life contingencies is recorded net of tax as a reduction of unrealized net capital gains included in accumulated other comprehensive income.

Contractholder funds

Contractholder funds represent interest-bearing liabilities arising from the sale of products such as interest-sensitive life insurance, fixed annuities and funding agreements. Contractholder funds primarily comprise cumulative deposits received and interest credited to the contractholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Contractholder funds also include reserves for secondary guarantees on interest-sensitive life insurance and certain fixed annuity contracts and reserves for certain guarantees on reinsured variable annuity contracts.

Separate accounts

Separate accounts assets are carried at fair value. The assets of the separate accounts are legally segregated and available only to settle separate accounts contract obligations. Separate accounts liabilities represent the contractholders’ claims to the related assets and are carried at an amount equal to the separate accounts assets. Investment income and realized capital gains and losses of the separate accounts accrue directly to the contractholders and therefore are not included in the Company’s Consolidated Statements of Operations. Deposits to and surrenders and withdrawals from the separate accounts are reflected in separate accounts liabilities and are not included in consolidated cash flows.

Absent any contract provision wherein the Company provides a guarantee, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. Substantially all of the Company’s variable annuity business was reinsured beginning in 2006.

Legal contingencies

The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis. The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred.

Long-term debt

Long-term debt includes senior notes, senior debentures, subordinated debentures and junior subordinated debentures issued by the Corporation. Unamortized debt issuance costs are reported in long-term debt and are amortized over the expected period the debt will remain outstanding.

Deferred Employee Stock Ownership Plan (“ESOP”) expense

Deferred ESOP expense represents the remaining unrecognized cost of shares acquired by the Allstate ESOP to pre-fund a portion of the Company’s contribution to the Allstate 401(k) Savings Plan.

Equity incentive plans

The Company has equity incentive plans under which the Company grants nonqualified stock options, restricted stock units and performance stock awards (“equity awards”) to certain employees and directors of the Company. The Company measures the fair value of equity awards at the award date and recognizes the expense over the shorter of the period in which the requisite service is rendered or retirement eligibility is attained. The expense for performance stock awards is adjusted each period to reflect the performance factor most likely to be achieved at the end of the performance period. The Company uses a binomial lattice model to determine the fair value of employee stock options.

Off-balance sheet financial instruments

Commitments to invest, commitments to purchase private placement securities, commitments to extend loans, financial guarantees and credit guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Consolidated Statements of Financial Position (see Note 7 and Note 14).

Consolidation of variable interest entities (“VIEs”)

The Company consolidates VIEs when it is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE.

Foreign currency translation

The local currency of the Company’s foreign subsidiaries is deemed to be the functional currency of the country in which these subsidiaries operate. The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect at the end of a reporting period for assets and liabilities and at average exchange rates during the period for results of operations. The unrealized gains and losses from the translation of the net assets are recorded as unrealized foreign currency translation adjustments and included in accumulated other comprehensive income. Changes in unrealized foreign currency translation adjustments are included in other comprehensive income. Gains and losses from foreign currency transactions are reported in operating costs and expenses and have not been material.

Earnings per common share

Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units and contingently issuable performance stock awards.

The computation of basic and diluted earnings per common share for the years ended December 31 is presented in the following table.



($ in millions, except per share data)	2016		2015		2014
Numerator:
Net income	$	1,877	$	2,171	$	2,850
Less: Preferred stock dividends	116		116		104
Net income applicable to common shareholders⁽¹⁾	$	1,761	$	2,055	$	2,746

Denominator:
Weighted average common shares outstanding	372.8		401.1		431.4
Effect of dilutive potential common shares:
Stock options	3.2		4.0		4.7
Restricted stock units (non-participating) and performance stock awards	1.3		1.7		2.1
Weighted average common and dilutive potential common shares outstanding	377.3		406.8		438.2

Earnings per common share – Basic	$	4.72	$	5.12	$	6.37
Earnings per common share – Diluted	$	4.67	$	5.05	$	6.27

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⁽¹⁾	Net income applicable to common shareholders is net income less preferred stock dividends.

The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. Options to purchase 3.8 million, 2.2 million and 3.0 million Allstate common shares, with exercise prices ranging from $53.91 to $71.29, $57.98 to $71.29 and $49.96 to $67.61, were outstanding in 2016, 2015 and 2014, respectively, but were not included in the computation of diluted earnings per common share in those years.

Adopted accounting standards

Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period

In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies that a performance target that affects vesting and could be achieved after the requisite service period should be treated as a performance condition and not reflected in estimating the grant-date fair value of the award. Compensation costs should reflect the amount attributable to the periods for which the requisite service has been rendered. Total compensation expense recognized during and after the requisite service period (which may differ from the vesting period) should reflect the number of awards that are expected to vest and should be adjusted to reflect the number of awards that ultimately vest. The Company’s existing accounting policy for performance targets that affect the vesting of share-based payment awards was consistent with the new guidance and as such the adoption as of January 1, 2016 had no impact on the Company’s results of operations or financial position.

Amendments to the Consolidation Analysis

In February 2015, the FASB issued guidance affecting the consolidation evaluation for limited partnerships and similar entities, fees paid to a decision maker or service provider, and variable interests in a variable interest entity held by related parties of the reporting enterprise. The adoption of this guidance as of January 1, 2016 did not have a material impact on the Company’s results of operations or financial position.

Disclosures about Short-Duration Contracts

In May 2015, the FASB issued guidance requiring expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity’s significant estimates made in measuring the liability for unpaid claims and claim adjustment expenses. The disclosures include information about incurred and paid claims development by accident year, on a net basis after reinsurance, for the number of years claims incurred typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, the incidence of claims including the methodology used to determine the incidence of claims, and claim duration. The guidance is effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and is to be applied retrospectively. The new guidance affects disclosures only and therefore, the adoption as of December 31, 2016 had no impact on the Company’s results of operations or financial position.

Pending accounting standards

Revenue from Contracts with Customers

In May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Insurance contracts are excluded from the scope of the new guidance. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance is effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued guidance requiring equity investments, including equity securities and limited partnership interests, that are not accounted for under the equity method of accounting or result in consolidation to be measured at fair value with changes in fair value recognized in net income. Equity investments without readily determinable fair values may be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. When a qualitative assessment of equity investments without readily determinable fair values indicates that impairment exists, the carrying value is required to be adjusted to fair value, if lower. The guidance clarifies that an entity should evaluate the realizability of a deferred tax asset related to available-for-sale fixed income securities in combination with the entity’s other deferred tax assets. The guidance also changes certain disclosure requirements. The guidance is effective for interim and annual periods beginning after December 15, 2017, and is to be applied through a cumulative-effect adjustment to beginning retained income as of the beginning of the period of adoption. The new guidance related to equity investments without readily determinable fair values is to be applied prospectively as of the date of adoption. The Company is in the process of evaluating the impact of adoption. The most significant impacts, using values as of December 31, 2016, are expected to be the change in accounting for equity securities where $509 million of pre-tax unrealized net capital gains would be reclassified from accumulated other comprehensive income to retained income and cost method limited partnership interests (excluding limited partnership interests accounted for on a cost recovery basis) where the carrying value would increase by approximately $178 million, pre-tax, with the adjustment recorded in retained income.

Accounting for Leases

In February 2016, the FASB issued guidance that revises the accounting for leases. Under the new guidance, lessees will be required to recognize a right-of-use asset and lease liability for all leases other than those that meet the definition of a short-term lease. The lease liability will be equal to the present value of lease payments. A right-of-use asset will be based on the lease liability adjusted for qualifying initial direct costs. The expense of operating leases under the new guidance will be recognized in the income statement on a straight-line basis after combining the lease expense components (interest expense on the lease liability and amortization of the right-of-use asset) over the term of the lease. For finance leases, the expense components are computed separately and produce greater up-front expense compared to operating leases as interest expense on the lease liability is higher in early years and the right-of-use asset is amortized on a straight-line basis consistent with operating leases. Lease classification will be based on criteria similar to those currently applied. The accounting model for lessors will be similar to the current model with modifications to reflect definition changes for components such as initial direct costs. Lessors will continue to classify leases as operating, direct financing, or sales-type. The guidance is effective for reporting periods beginning after December 15, 2018 using a modified retrospective approach applied at the beginning of the earliest period presented. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Employee Share-Based Payment Accounting

In March 2016, the FASB issued guidance to amend the accounting for share-based payments. Under the new guidance, reporting entities will be required to recognize all tax effects related to share-based payments at settlement (or expiration) through the income statement and will no longer be permitted to recognize excess tax benefits and tax deficiencies in additional paid in capital. The change will be applied on a modified retrospective basis, with a cumulative effect adjustment to beginning retained income. In addition, all tax-related cash flows resulting from share-based payments will be reported as operating activities on the statement of cash flows, with either prospective or retrospective transition permitted. The new guidance will permit employers to withhold shares upon settlement of an award to satisfy the employer’s tax withholding requirement (up to the employee’s maximum individual statutory tax rate) without causing liability classification of the award. The new guidance clarifies that all cash payments made to taxing authorities on an employee’s behalf for withheld shares should be presented as financing activities on the statement of cash flows. Also under the new guidance, reporting entities are permitted to make an accounting policy election to estimate forfeitures or recognize them when they occur. If elected, the change to recognize forfeitures when they occur must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The new guidance is effective for reporting periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Transition to Equity Method Accounting

In March 2016, the FASB issued guidance amending the accounting requirements for transitioning to the equity method of accounting (“EMA”), including a transition from the cost method. The guidance requires the cost of acquiring an additional interest in an investee to be added to the existing carrying value to establish the initial basis of the EMA investment. Under the new guidance, no retroactive adjustment is required when an investment initially qualifies for EMA treatment. The guidance is effective for interim and annual periods beginning after December 15, 2016, and is to be applied prospectively. The guidance will principally affect the future accounting for investments that qualify for EMA after application of the cost method of accounting. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for the reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The reporting entity must consider all available relevant information when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the contractual life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through an allowance and not as a direct write-down. The guidance is effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The Company is in the process of evaluating the impact of adoption.

Goodwill Impairment

In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment that removes the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. Under the new guidance, goodwill impairment will be measured and recognized as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect the reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether it is necessary to perform the quantitative goodwill impairment test. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The guidance is to be applied on a prospective basis, with the effects, if any, recognized in net income in the period of adoption. The impact to the Company upon adoption is dependent upon the excess, if any, of carrying value of the Company’s reporting units over their respective fair values, a measure that is not currently determinable.

Acquisition and Disposition	12 Months Ended
Acquisition and Disposition	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Acquisition and Disposition	Acquisition and Disposition On November 28, 2016, the Company announced an agreement to acquire SquareTrade Holding Company, Inc. (“SquareTrade”), a consumer product protection plan provider that distributes through many of America’s major retailers, for approximately $1.4 billion in cash. SquareTrade provides protection plans for consumer appliances and electronics, such as TVs, smartphones and computers. This will broaden Allstate’s unique product offerings to better meet consumers’ needs. The transaction closed on January 3, 2017. Due to the limited time since the closing date, the initial accounting for the acquisition is incomplete. As a result, the Company is unable to provide amounts recognized as of the closing date for the major classes of assets acquired and liabilities assumed. The Company will include this information in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017. On April 1, 2014, the Company sold Lincoln Benefit Life Company (“LBL”), LBL’s life insurance business generated through independent master brokerage agencies, and all of LBL’s deferred fixed annuity and long-term care insurance business to Resolution Life Holdings, Inc. The gross sale price was $797 million, representing $596 million of cash and the retention of tax benefits. The loss on disposition in 2014 was $101 million, pre-tax ($60 million, after-tax) and included a $22 million, pre-tax, reduction in goodwill.

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 50
-Paragraph 5B
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

+ Details

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2016

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Non-cash investing activities include $326 million, $131 million and $120 million related to mergers and exchanges completed with equity securities and modifications of certain mortgage loans, fixed income securities and other investments in 2016, 2015 and 2014, respectively, and a $89 million obligation to fund a limited partnership investment in 2015. Non-cash financing activities include $41 million, $74 million and $47 million related to the issuance of Allstate common shares for vested equity awards in 2016, 2015 and 2014, respectively. Non-cash financing activities also include $34 million related to debt acquired in conjunction with the purchase of an investment in 2016.

Liabilities for collateral received in conjunction with the Company’s securities lending program were $1.12 billion, $829 million and $780 million as of December 31, 2016, 2015 and 2014, respectively, and are reported in other liabilities and accrued expenses. Obligations to return cash collateral for over-the-counter (“OTC”) and cleared derivatives were $5 million, $11 million and $2 million as of December 31, 2016, 2015 and 2014, respectively, and are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Net change in proceeds managed
Net change in fixed income securities	$	(584	)	$	—		$	—
Net change in short-term investments	295			(59		)	(167		)
Operating cash flow used	(289		)	(59		)	(167		)
Net change in cash	—			1			9
Net change in proceeds managed	$	(289	)	$	(58	)	$	(158	)

Net change in liabilities
Liabilities for collateral, beginning of year	$	(840	)	$	(782	)	$	(624	)
Liabilities for collateral, end of year	(1,129		)	(840		)	(782		)
Operating cash flow provided	$	289		$	58		$	158

Investments

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Investments

Fair values

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:



($ in millions)	Amortized cost		Gross unrealized					Fair value
	Amortized cost		Gains		Losses			Fair value
December 31, 2016
U.S. government and agencies	$	3,572	$	74	$	(9	)	$	3,637
Municipal	7,116		304		(87		)	7,333
Corporate	42,742		1,178		(319		)	43,601
Foreign government	1,043		36		(4		)	1,075
ABS	1,169		13		(11		)	1,171
RMBS	651		85		(8		)	728
CMBS	262		17		(9		)	270
Redeemable preferred stock	21		3		—			24
Total fixed income securities	$	56,576	$	1,710	$	(447	)	$	57,839

December 31, 2015
U.S. government and agencies	$	3,836	$	90	$	(4	)	$	3,922
Municipal	7,032		389		(20		)	7,401
Corporate	41,674		1,032		(879		)	41,827
Foreign government	983		50		—			1,033
ABS	2,359		11		(43		)	2,327
RMBS	857		100		(10		)	947
CMBS	438		32		(4		)	466
Redeemable preferred stock	22		3		—			25
Total fixed income securities	$	57,201	$	1,707	$	(960	)	$	57,948

Scheduled maturities

The scheduled maturities for fixed income securities are as follows as of December 31, 2016:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	4,873	$	4,898
Due after one year through five years	27,836		28,307
Due after five years through ten years	16,448		16,612
Due after ten years	5,337		5,853
	54,494		55,670
ABS, RMBS and CMBS	2,082		2,169
Total	$	56,576	$	57,839

Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS, RMBS and CMBS are shown separately because of the potential for prepayment of principal prior to contractual maturity dates.

Net investment income

Net investment income for the years ended December 31 is as follows:



($ in millions)	2016			2015			2014
Fixed income securities	$	2,060		$	2,218		$	2,447
Equity securities	137			110			117
Mortgage loans	217			228			265
Limited partnership interests	561			549			614
Short-term investments	16			9			7
Other	222			192			170
Investment income, before expense	3,213			3,306			3,620
Investment expense	(171		)	(150		)	(161		)
Net investment income	$	3,042		$	3,156		$	3,459

Realized capital gains and losses

Realized capital gains and losses by asset type for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Fixed income securities	$	(91	)	$	212		$	130
Equity securities	23			(50		)	582
Mortgage loans	—			6			2
Limited partnership interests	(21		)	(93		)	13
Derivatives	3			(21		)	(38		)
Other	(4		)	(24		)	5
Realized capital gains and losses	$	(90	)	$	30		$	694

Realized capital gains and losses by transaction type for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Impairment write-downs	$	(234	)	$	(195	)	$	(32	)
Change in intent write-downs	(69		)	(221		)	(213		)
Net other-than-temporary impairment losses recognized in earnings	(303		)	(416		)	(245		)
Sales and other	213			470			975
Valuation and settlements of derivative instruments	—			(24		)	(36		)
Realized capital gains and losses	$	(90	)	$	30		$	694

Gross gains of $631 million, $915 million and $1.10 billion and gross losses of $461 million, $399 million and $169 million were realized on sales of fixed income and equity securities during 2016, 2015 and 2014, respectively.

Other-than-temporary impairment losses by asset type for the years ended December 31 are as follows:



($ in millions)	2016									2015									2014
	Gross			Included in OCI			Net			Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	—		$	—		$	—		$	(17	)	$	4		$	(13	)	$	(10	)	$	—		$	(10	)
Corporate	(33		)	9			(24		)	(61		)	11			(50		)	(7		)	—			(7		)
ABS	(6		)	—			(6		)	(33		)	22			(11		)	(12		)	1			(11		)
RMBS	—			(1		)	(1		)	1			(1		)	—			6			(4		)	2
CMBS	(15		)	2			(13		)	(1		)	—			(1		)	(1		)	—			(1		)
Total fixed income securities	(54		)	10			(44		)	(111		)	36			(75		)	(24		)	(3		)	(27		)
Equity securities	(194		)	—			(194		)	(279		)	—			(279		)	(196		)	—			(196		)
Mortgage loans	—			—			—			4			—			4			5			—			5
Limited partnership interests	(56		)	—			(56		)	(51		)	—			(51		)	(27		)	—			(27		)
Other	(9		)	—			(9		)	(15		)	—			(15		)	—			—			—
Other-than-temporary impairment losses	$	(313	)	$	10		$	(303	)	$	(452	)	$	36		$	(416	)	$	(242	)	$	(3	)	$	(245	)

The total amount of other-than-temporary impairment losses included in accumulated other comprehensive income at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table. The amount excludes $221 million and $233 million as of December 31, 2016 and 2015, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



($ in millions)	December 31, 2016			December 31, 2015
Municipal	$	(8	)	$	(9	)
Corporate	(7		)	(7		)
ABS	(21		)	(23		)
RMBS	(90		)	(102		)
CMBS	(7		)	(6		)
Total	$	(133	)	$	(147	)

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of December 31 are as follows:



($ in millions)	2016			2015			2014
Beginning balance	$	(392	)	$	(380	)	$	(513	)
Additional credit loss for securities previously other-than-temporarily impaired	(21		)	(30		)	(6		)
Additional credit loss for securities not previously other-than-temporarily impaired	(23		)	(45		)	(18		)
Reduction in credit loss for securities disposed or collected	117			60			95
Change in credit loss due to accretion of increase in cash flows	1			3			3
Reduction in credit loss for securities sold in LBL disposition	—			—			59
Ending balance	$	(318	)	$	(392	)	$	(380	)

The Company uses its best estimate of future cash flows expected to be collected from the fixed income security, discounted at the security’s original or current effective rate, as appropriate, to calculate a recovery value and determine whether a credit loss exists. The determination of cash flow estimates is inherently subjective and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable assumptions and forecasts, are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, foreign exchange rates, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, vintage, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the estimated recovery value is less than the amortized cost of the security, a credit loss exists and an other-than-temporary impairment for the difference between the estimated recovery value and amortized cost is recorded in earnings. The portion of the unrealized loss related to factors other than credit remains classified in accumulated other comprehensive income. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.

Unrealized net capital gains and losses

Unrealized net capital gains and losses included in accumulated other comprehensive income are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2016			Gains		Losses
Fixed income securities	$	57,839	$	1,710	$	(447	)	$	1,263
Equity securities	5,666		594		(85		)	509
Short-term investments	4,288		—		—			—
Derivative instruments ⁽¹⁾	5		5		(3		)	2
EMA limited partnerships ⁽²⁾								(4		)
Unrealized net capital gains and losses, pre-tax								1,770
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(146		)
Amounts recognized								(146		)
Deferred income taxes								(571		)
Unrealized net capital gains and losses, after-tax								$	1,053

______________________________


⁽¹⁾	Included in the fair value of derivative instruments is $5 million classified as assets.


⁽²⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.

⁽³⁾

The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. Although the Company evaluates premium deficiencies on the combined performance of life insurance and immediate annuities with life contingencies, the adjustment, if any, primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.


⁽⁴⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2015			Gains		Losses
Fixed income securities	$	57,948	$	1,707	$	(960	)	$	747
Equity securities	5,082		415		(139		)	276
Short-term investments	2,122		—		—			—
Derivative instruments ⁽¹⁾	10		10		(4		)	6
EMA limited partnerships								(4		)
Unrealized net capital gains and losses, pre-tax								1,025
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(67		)
Amounts recognized								(67		)
Deferred income taxes								(338		)
Unrealized net capital gains and losses, after-tax								$	620

______________________________


⁽¹⁾	Included in the fair value of derivative instruments are $6 million classified as assets and $(4) million classified as liabilities.

Change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the years ended December 31 is as follows:



($ in millions)	2016			2015			2014
Fixed income securities	$	516		$	(2,021	)	$	866
Equity securities	233			(136		)	(212		)
Derivative instruments	(4		)	8			16
EMA limited partnerships	—			1			(2		)
Investments classified as held for sale	—			—			(190		)
Total	745			(2,148		)	478
Amounts recognized for:
Insurance reserves	—			28			(28		)
DAC and DSI	(79		)	112			(21		)
Amounts recognized	(79		)	140			(49		)
Deferred income taxes	(233		)	702			(149		)
Increase (decrease) in unrealized net capital gains and losses, after-tax	$	433		$	(1,306	)	$	280

Portfolio monitoring

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income and equity security whose carrying value may be other-than-temporarily impaired.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, the security’s decline in fair value is considered other than temporary and is recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, and compares this to the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the 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.

For equity securities, the Company considers various factors, including whether it has the intent and ability to hold the equity security for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the equity security’s decline in fair value is considered other than temporary and is recorded in earnings.

For fixed income and equity securities managed by third parties, either the Company has contractually retained its decision making authority as it pertains to selling securities that are in an unrealized loss position or it recognizes any unrealized loss at the end of the period through a charge to earnings.

The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost (for fixed income securities) or cost (for equity securities) is below established thresholds. The process also includes the monitoring of other impairment indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential other-than-temporary impairment using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of other-than-temporary impairment for these fixed income and equity securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value is other than temporary are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the length of time and extent to which the fair value has been less than amortized cost or cost.

The following table summarizes the gross unrealized losses and fair value of fixed income and equity securities by the length of time that individual securities have been in a continuous unrealized loss position.



($ in millions)	Less than 12 months						12 months or more
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
December 31, 2016
Fixed income securities
U.S. government and agencies	46	$	943	$	(9	)	—	$	—	$	—		$	(9	)
Municipal	1,310	3,073		(76		)	8	29		(11		)	(87		)
Corporate	862	13,343		(256		)	83	678		(63		)	(319		)
Foreign government	41	225		(4		)	—	—		—			(4		)
ABS	31	222		(1		)	14	109		(10		)	(11		)
RMBS	89	53		(1		)	179	91		(7		)	(8		)
CMBS	15	59		(4		)	4	15		(5		)	(9		)
Redeemable preferred stock	1	—		—			—	—		—			—
Total fixed income securities	2,395	17,918		(351		)	288	922		(96		)	(447		)
Equity securities	195	654		(56		)	46	165		(29		)	(85		)
Total fixed income and equity securities	2,590	$	18,572	$	(407	)	334	$	1,087	$	(125	)	$	(532	)
Investment grade fixed income securities	2,202	$	15,678	$	(293	)	201	$	493	$	(51	)	$	(344	)
Below investment grade fixed income securities	193	2,240		(58		)	87	429		(45		)	(103		)
Total fixed income securities	2,395	$	17,918	$	(351	)	288	$	922	$	(96	)	$	(447	)

December 31, 2015
Fixed income securities
U.S. government and agencies	53	$	1,874	$	(4	)	—	$	—	$	—		$	(4	)
Municipal	222	810		(6		)	9	36		(14		)	(20		)
Corporate	1,361	17,915		(696		)	111	1,024		(183		)	(879		)
Foreign government	9	44		—			—	—		—			—
ABS	133	1,733		(24		)	20	324		(19		)	(43		)
RMBS	88	69		—			176	125		(10		)	(10		)
CMBS	13	75		(2		)	1	2		(2		)	(4		)
Total fixed income securities	1,879	22,520		(732		)	317	1,511		(228		)	(960		)
Equity securities	265	1,397		(107		)	37	143		(32		)	(139		)
Total fixed income and equity securities	2,144	$	23,917	$	(839	)	354	$	1,654	$	(260	)	$	(1,099	)
Investment grade fixed income securities	1,405	$	17,521	$	(362	)	225	$	972	$	(105	)	$	(467	)
Below investment grade fixed income securities	474	4,999		(370		)	92	539		(123		)	(493		)
Total fixed income securities	1,879	$	22,520	$	(732	)	317	$	1,511	$	(228	)	$	(960	)

As of December 31, 2016, $444 million of the $532 million unrealized losses are related to securities with an unrealized loss position less than 20% of amortized cost or cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired. Of the $444 million, $318 million are related to unrealized losses on investment grade fixed income securities and $55 million are related to equity securities. Of the remaining $71 million, $47 million have been in an unrealized loss position for less than 12 months. Investment grade is defined as a security having a rating of Aaa, Aa, A or Baa from Moody’s, a rating of AAA, AA, A or BBB from S&P Global Ratings (“S&P”), a comparable rating from another nationally recognized rating agency, or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates and/or wider credit spreads since the time of initial purchase.

As of December 31, 2016, the remaining $88 million of unrealized losses are related to securities in unrealized loss positions greater than or equal to 20% of amortized cost or cost. Investment grade fixed income securities comprising $26 million of these unrealized losses were evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. Of the $88 million, $32 million are related to below investment grade fixed income securities and $30 million are related to equity securities. Of these amounts, $14 million are related to below investment grade fixed income securities that had been in an unrealized loss position greater than or equal to 20% of amortized cost for a period of twelve or more consecutive months as of December 31, 2016.

ABS, RMBS and CMBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread, and (iii) for ABS and RMBS in an unrealized loss position, credit enhancements from reliable bond insurers, where applicable. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets. Unrealized losses on equity securities are primarily related to temporary equity market fluctuations of securities that are expected to recover.

As of December 31, 2016, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis. As of December 31, 2016, the Company had the intent and ability to hold equity securities with unrealized losses for a period of time sufficient for them to recover.

Limited partnerships

As of December 31, 2016 and 2015, the carrying value of equity method limited partnerships totaled $4.53 billion and $3.72 billion, respectively. The Company recognizes an impairment loss for equity method limited partnerships when evidence demonstrates that the loss is other than temporary. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment.

As of December 31, 2016 and 2015, the carrying value for cost method limited partnerships was $1.28 billion and $1.15 billion, respectively. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the investment. Impairment indicators may include: significantly reduced valuations of the investments held by the limited partnerships; actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; or any other adverse events since the last financial statements received that might affect the fair value of the investee’s capital. Additionally, the Company’s portfolio monitoring process includes a quarterly review of all cost method limited partnerships to identify instances where the net asset value is below established thresholds for certain periods of time, as well as investments that are performing below expectations, for further impairment consideration. If a cost method limited partnership is other-than-temporarily impaired, the carrying value is written down to fair value, generally estimated to be equivalent to the reported net asset value.

Mortgage loans

The Company’s mortgage loans are commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States and totaled, net of valuation allowance, $4.49 billion and $4.34 billion as of December 31, 2016 and 2015, respectively. Substantially all of the commercial mortgage loans are non-recourse to the borrower.

The following table shows the principal geographic distribution of commercial real estate represented in the Company’s mortgage loan portfolio. No other state represented more than 5% of the portfolio as of December 31.



(% of mortgage loan portfolio carrying value)	2016		2015
California	19.3	%	21.3	%
Texas	10.5		9.7
New Jersey	8.2		8.7
Illinois	6.7		7.1
Florida	5.4		5.3

The types of properties collateralizing the mortgage loans as of December 31 are as follows:



(% of mortgage loan portfolio carrying value)	2016		2015
Apartment complex	27.6	%	26.4	%
Office buildings	23.9		22.7
Retail	20.4		21.3
Warehouse	17.0		18.4
Other	11.1		11.2
Total	100.0	%	100.0	%

The contractual maturities of the mortgage loan portfolio as of December 31, 2016 are as follows:



($ in millions)	Number of loans	Carrying value		Percent
2017	28	$	295	6.6	%
2018	29	336		7.5
2019	10	267		6.0
2020	14	190		4.2
Thereafter	222	3,398		75.7
Total	303	$	4,486	100.0	%

Mortgage loans are evaluated for impairment on a specific loan basis through a quarterly credit monitoring process and review of key credit quality indicators. Mortgage loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans to 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. Impaired mortgage loans may not have a valuation allowance when the fair value of the collateral less costs to sell is higher than the carrying value. Valuation allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell or present value of the loan’s expected future repayment cash flows. Mortgage loans are charged off against their corresponding valuation allowances when there is no reasonable expectation of recovery. The impairment evaluation is non-statistical in respect to the aggregate portfolio but considers facts and circumstances attributable to each loan. It is not considered probable that additional impairment losses, beyond those identified on a specific loan basis, have been incurred as of December 31, 2016.

Accrual of income is suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on mortgage loans on nonaccrual status are generally recorded as a reduction of carrying value.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loans are evaluated for impairment. Debt service coverage ratio represents the amount of estimated cash flows from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.

The following table reflects the carrying value of non-impaired fixed rate and variable rate mortgage loans summarized by debt service coverage ratio distribution as of December 31:



($ in millions)	2016						2015
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	60	$	—	$	60	$	64	$	—	$	64
1.0 - 1.25	324		—		324		382		—		382
1.26 - 1.50	1,293		—		1,293		1,219		—		1,219
Above 1.50	2,765		39		2,804		2,667		—		2,667
Total non-impaired mortgage loans	$	4,442	$	39	$	4,481	$	4,332	$	—	$	4,332

Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.

The net carrying value of impaired mortgage loans as of December 31 is as follows:



($ in millions)	2016		2015
Impaired mortgage loans with a valuation allowance	$	5	$	6
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	5	$	6
Valuation allowance on impaired mortgage loans	$	3	$	3

The average balance of impaired loans was $6 million, $11 million and $27 million during 2016, 2015 and 2014, respectively.

The rollforward of the valuation allowance on impaired mortgage loans for the years ended December 31 is as follows:



($ in millions)	2016		2015			2014
Beginning balance	$	3	$	8		$	21
Net decrease in valuation allowance	—		(4		)	(5		)
Charge offs	—		(1		)	(8		)
Ending balance	$	3	$	3		$	8

Payments on all mortgage loans were current as of December 31, 2016 and 2015.

Municipal bonds

The Company maintains a diversified portfolio of municipal bonds. The following table shows the principal geographic distribution of municipal bond issuers represented in the Company’s portfolio as of December 31. No other state represents more than 5% of the portfolio.



(% of municipal bond portfolio carrying value)	2016		2015
Texas	10.0	%	9.2	%
California	7.2		6.3
New York	6.8		7.7
Florida	5.7		5.6
Washington	5.6		5.6
Michigan	5.4		3.9

Concentration of credit risk

As of December 31, 2016, the Company is not exposed to any credit concentration risk of a single issuer and its affiliates greater than 10% of the Company’s shareholders’ equity, other than the U.S. government and its agencies.

Securities loaned

The Company’s business activities include securities lending programs with third parties, mostly large banks. As of December 31, 2016 and 2015, fixed income and equity securities with a carrying value of $1.08 billion and $798 million, respectively, were on loan under these agreements. Interest income on collateral, net of fees, was $6 million in 2016 and $2 million in each of 2015 and 2014.

Other investment information

Included in fixed income securities are below investment grade assets totaling $8.62 billion and $8.64 billion as of December 31, 2016 and 2015, respectively.

As of December 31, 2016, fixed income securities and short-term investments with a carrying value of $168 million were on deposit with regulatory authorities as required by law.

As of December 31, 2016, the carrying value of fixed income securities and other investments that were non-income producing was $70 million.

Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Assets and liabilities whose values are based on the following:


(a)	Quoted prices for similar assets or liabilities in active markets;


(b)	Quoted prices for identical or similar assets or liabilities in markets that are not active; or


(c)	Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments.

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy. The first is where specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs.

The second situation where the Company classifies securities in Level 3 is where quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans, limited partnership interests, bank loans, agent loans and policy loans. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to remeasurement at fair value after initial recognition and the resulting remeasurement is reflected in the consolidated financial statements. In addition, derivatives embedded in fixed income securities are not disclosed in the hierarchy as free-standing derivatives since they are presented with the host contracts in fixed income securities.

In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis

Level 1 measurements


•	Fixed income securities: Comprise certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Equity securities: Comprise actively traded, exchange-listed equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Short-term: Comprise U.S. Treasury bills valued based on unadjusted quoted prices for identical assets in active markets that the Company can access and actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.


•	Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.

Level 2 measurements


•	Fixed income securities:

U.S. government and agencies: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - public: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - privately placed: Valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer.

Foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

ABS - collateralized debt obligations (“CDO”) and ABS - consumer and other: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads. Certain ABS - CDO and ABS - consumer and other are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable.

RMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads.

CMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads.

Redeemable preferred stock: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.


•	Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. For certain short-term investments, amortized cost is used as the best estimate of fair value.


•	Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

OTC derivatives, including interest rate swaps, foreign currency swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, currency rates, and counterparty credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

Level 3 measurements


•	Fixed income securities:

Municipal: Comprise municipal bonds that are not rated by third party credit rating agencies. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields and credit spreads. Also included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows.

Corporate - public and Corporate - privately placed: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer.

ABS - CDO, ABS - consumer and other, RMBS and CMBS: Valued based on non-binding broker quotes received from brokers who are familiar with the investments and where the inputs have not been corroborated to be market observable.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.

•

Other investments: Certain OTC derivatives, such as interest rate caps, certain credit default swaps and certain options (including swaptions), are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and credit spreads.

•

Contractholder funds: Derivatives embedded in certain life and annuity contracts are valued internally using models widely accepted in the financial services industry that determine a single best estimate of fair value for the embedded derivatives within a block of contractholder liabilities. The models primarily use stochastically determined cash flows based on the contractual elements of embedded derivatives, projected option cost and applicable market data, such as interest rate yield curves and equity index volatility assumptions. These are categorized as Level 3 as a result of the significance of non-market observable inputs.

Assets and liabilities measured at fair value on a non-recurring basis

Mortgage loans written-down to fair value in connection with recognizing impairments are valued based on the fair value of the underlying collateral less costs to sell. Limited partnership interests written-down to fair value in connection with recognizing other-than-temporary impairments are generally valued using net asset values.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2016.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	2,918		$	719		$	—					$	3,637
Municipal	—			7,208			125						7,333
Corporate - public	—			31,414			78						31,492
Corporate - privately placed	—			11,846			263						12,109
Foreign government	—			1,075			—						1,075
ABS - CDO	—			650			27						677
ABS - consumer and other	—			452			42						494
RMBS	—			727			1						728
CMBS	—			248			22						270
Redeemable preferred stock	—			24			—						24
Total fixed income securities	2,918			54,363			558						57,839
Equity securities	5,247			256			163						5,666
Short-term investments	850			3,423			15						4,288
Other investments: Free-standing derivatives	—			119			1			$	(9	)	111
Separate account assets	3,393			—			—						3,393
Other assets	—			—			1						1
Total recurring basis assets	12,408			58,161			738			(9		)	71,298
Non-recurring basis ⁽¹⁾	—			—			24						24
Total assets at fair value	$	12,408		$	58,161		$	762		$	(9	)	$	71,322
% of total assets at fair value	17.4		%	81.5		%	1.1		%	—		%	100.0		%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(290	)				$	(290	)
Other liabilities: Free-standing derivatives	(1		)	(68		)	(3		)	$	28		(44		)
Total liabilities at fair value	$	(1	)	$	(68	)	$	(293	)	$	28		$	(334	)
% of total liabilities at fair value	0.3		%	20.4		%	87.7		%	(8.4		)%	100.0		%

______________________________


⁽¹⁾	Includes $24 million of limited partnership interests written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2015:



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	3,056		$	861		$	5					$	3,922
Municipal	—			7,240			161						7,401
Corporate - public	—			30,356			46						30,402
Corporate - privately placed	—			10,923			502						11,425
Foreign government	—			1,033			—						1,033
ABS - CDO	—			716			61						777
ABS - consumer and other	—			1,500			50						1,550
RMBS	—			946			1						947
CMBS	—			446			20						466
Redeemable preferred stock	—			25			—						25
Total fixed income securities	3,056			54,046			846						57,948
Equity securities	4,786			163			133						5,082
Short-term investments	615			1,507			—						2,122
Other investments: Free-standing derivatives	—			65			1			$	(13	)	53
Separate account assets	3,658			—			—						3,658
Other assets	2			—			1						3
Total recurring basis assets	12,117			55,781			981			(13		)	68,866
Non-recurring basis ⁽¹⁾	—			—			55						55
Total assets at fair value	$	12,117		$	55,781		$	1,036		$	(13	)	$	68,921
% of total assets at fair value	17.6		%	80.9		%	1.5		%	—		%	100.0		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(299	)				$	(299	)
Other liabilities: Free-standing derivatives	(1		)	(23		)	(8		)	$	7		(25		)
Total liabilities at fair value	$	(1	)	$	(23	)	$	(307	)	$	7		$	(324	)
% of total liabilities at fair value	0.3		%	7.1		%	94.8		%	(2.2		)%	100.0		%

______________________________


⁽¹⁾	Includes $42 million of limited partnership interests and $13 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table summarizes quantitative information about the significant unobservable inputs used in Level 3 fair value measurements.



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
December 31, 2016
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(247	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.75%

December 31, 2015
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(247	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.76%

The embedded derivatives are equity-indexed and forward starting options in certain life and annuity products that provide customers with interest crediting rates based on the performance of the S&P 500. If the projected option cost increased (decreased), it would result in a higher (lower) liability fair value.

As of December 31, 2016 and 2015, Level 3 fair value measurements of fixed income securities total $558 million and $846 million, respectively, and include $307 million and $625 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $80 million and $96 million, respectively, of municipal fixed income securities that are not rated by third party credit rating agencies. The Company does not develop the unobservable inputs used in measuring fair value; therefore, these are not included in the table above. However, an increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third party credit rating agencies would result in a higher (lower) fair value.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2015			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	5		$	—		$	—		$	—		$	(4	)
Municipal	161			12			(10		)	6			(23		)
Corporate - public	46			—			—			41			(43		)
Corporate - privately placed	502			15			18			16			(398		)
ABS - CDO	61			1			6			10			(43		)
ABS - consumer and other	50			—			(3		)	3			(35		)
RMBS	1			1			—			—			—
CMBS	20			—			—			—			(1		)
Total fixed income securities	846			29			11			76			(547		)
Equity securities	133			(32		)	12			—			(12		)
Short-term investments	—			—			—			—			—
Free-standing derivatives, net	(7		)	6			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	973		$	3		$	23		$	76		$	(559	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(299	)	$	5		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(299	)	$	5		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of December 31, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	—
Municipal	22			(40		)	—			(3		)	125
Corporate - public	47			(11		)	—			(2		)	78
Corporate - privately placed	181			(15		)	—			(56		)	263
ABS - CDO	40			(3		)	—			(45		)	27
ABS - consumer and other	35			(5		)	—			(3		)	42
RMBS	—			(1		)	—			—			1
CMBS	5			—			—			(2		)	22
Total fixed income securities	330			(75		)	—			(112		)	558
Equity securities	65			(4		)	—			1			163
Short-term investments	15			—			—			—			15
Free-standing derivatives, net	—			—			—			(1		)	(2		)	⁽²	⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	410		$	(79	)	$	—		$	(112	)	$	735
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(3	)	$	7		$	(290	)
Total recurring Level 3 liabilities	$	—		$	—		$	(3	)	$	7		$	(290	)

______________________________


⁽¹⁾	The effect to net income totals $8 million and is reported in the Consolidated Statements of Operations as follows: $(9) million in realized capital gains and losses, $12 million in net investment income, $(4) million in interest credited to contractholder funds and $9 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $3 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2015.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2014			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	6		$	—		$	—		$	—		$	—
Municipal	270			(4		)	(7		)	3			(2		)
Corporate - public	214			—			—			—			(175		)
Corporate - privately placed	677			13			(20		)	13			(106		)
ABS - CDO	104			(1		)	4			43			(52		)
ABS - consumer and other	92			(1		)	—			—			(98		)
RMBS	1			—			—			—			—
CMBS	23			—			—			—			—
Total fixed income securities	1,387			7			(23		)	59			(433		)
Equity securities	83			(3		)	(5		)	—			—
Short-term investments	5			—			—			—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,469		$	5		$	(28	)	$	59		$	(433	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(323	)	$	19		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(323	)	$	19		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of December 31, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	5
Municipal	—			(91		)	—			(8		)	161
Corporate - public	11			—			—			(4		)	46
Corporate - privately placed	79			(74		)	—			(80		)	502
ABS - CDO	—			(2		)	—			(35		)	61
ABS - consumer and other	70			(5		)	—			(8		)	50
RMBS	—			—			—			—			1
CMBS	12			—			—			(15		)	20
Total fixed income securities	172			(172		)	—			(151		)	846
Equity securities	69			(11		)	—			—			133
Short-term investments	35			(40		)	—			—			—
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	276		$	(223	)	$	—		$	(152	)	$	973
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(2	)	$	7		$	(299	)
Total recurring Level 3 liabilities	$	—		$	—		$	(2	)	$	7		$	(299	)

______________________________


⁽¹⁾	The effect to net income totals $24 million and is reported in the Consolidated Statements of Operations as follows: $(8) million in realized capital gains and losses, $13 million in net investment income, $26 million in interest credited to contractholder funds and $(7) million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $8 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2014.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2013			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	7		$	—		$	—		$	—		$	—
Municipal	343			(2		)	18			—			(17		)
Corporate	1,109			24			(14		)	89			(125		)
ABS	192			1			2			49			(144		)
RMBS	2			—			—			—			—
CMBS	43			(1		)	—			5			(4		)
Redeemable preferred stock	1			—			—			—			—
Total fixed income securities	1,697			22			6			143			(290		)
Equity securities	132			22			(16		)	—			(2		)
Short-term investments	—			—			—			—			—
Free-standing derivatives, net	(5		)	—			—			—			—
Other assets	—			1			—			—			—
Assets held for sale	362			(1		)	2			4			(2		)
Total recurring Level 3 assets	$	2,186		$	44		$	(8	)	$	147		$	(294	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(307	)	$	(8	)	$	—		$	—		$	—
Liabilities held for sale	(246		)	17			—			—			—
Total recurring Level 3 liabilities	$	(553	)	$	9		$	—		$	—		$	—

	Sold in LBL disposition ⁽³⁾			Purchases/Issues ⁽⁴⁾			Sales			Settlements			Balance as of December 31, 2014
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	6
Municipal	—			6			(74		)	(4		)	270
Corporate	—			64			(140		)	(116		)	891
ABS	—			119			—			(23		)	196
RMBS	—			—			—			(1		)	1
CMBS	4			8			(1		)	(31		)	23
Redeemable preferred stock	—			—			(1		)	—			—
Total fixed income securities	4			197			(216		)	(176		)	1,387
Equity securities	—			83			(136		)	—			83
Short-term investments	—			45			(40		)	—			5
Free-standing derivatives, net	—			2			—			(4		)	(7		)	⁽²	⁾
Other assets	—			—			—			—			1
Assets held for sale	(351		)	—			(8		)	(6		)	—
Total recurring Level 3 assets	$	(347	)	$	327		$	(400	)	$	(186	)	$	1,469
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	(14	)	$	—		$	6		$	(323	)
Liabilities held for sale	230			(4		)	—			3			—
Total recurring Level 3 liabilities	$	230		$	(18	)	$	—		$	9		$	(323	)

______________________________


⁽¹⁾	The effect to net income totals $53 million and is reported in the Consolidated Statements of Operations as follows: $34 million in realized capital gains and losses, $13 million in net investment income, $(5) million in interest credited to contractholder funds, $15 million in life and annuity contract benefits and $(4) million in loss on disposition of operations.


⁽²⁾	Comprises $2 million of assets and $9 million of liabilities.


⁽³⁾	Includes transfers from held for sale that took place in first quarter 2014 of $4 million for CMBS and $(4) million for Assets held for sale.


⁽⁴⁾	Represents purchases for assets and issues for liabilities.

Transfers between level categorizations may occur due to changes in the availability of market observable inputs, which generally are caused by changes in market conditions such as liquidity, trading volume or bid-ask spreads. Transfers between level categorizations may also occur due to changes in the valuation source. For example, in situations where a fair value quote is not provided by the Company’s independent third-party valuation service provider and as a result the price is stale or has been replaced with a broker quote whose inputs have not been corroborated to be market observable, the security is transferred into Level 3. Transfers in and out of level categorizations are reported as having occurred at the beginning of the quarter in which the transfer occurred. Therefore, for all transfers into Level 3, all realized and changes in unrealized gains and losses in the quarter of transfer are reflected in the Level 3 rollforward table.

There were no transfers between Level 1 and Level 2 during 2016, 2015 or 2014.

Transfers into Level 3 during 2016, 2015 and 2014 included situations where a fair value quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers out of Level 3 during 2016, 2015 and 2014 included situations where a broker quote was used in the prior period and a fair value quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant.

The following table provides the change in unrealized gains and losses included in net income for Level 3 assets and liabilities held as of December 31.



($ in millions)	2016			2015			2014
Assets
Fixed income securities:
Municipal	$	2		$	(12	)	$	(7	)
Corporate	2			11			11
ABS	—			2			1
RMBS	—			—			(1		)
Total fixed income securities	4			1			4
Equity securities	(32		)	(4		)	—
Free-standing derivatives, net	5			1			5
Other assets	—			—			1
Total recurring Level 3 assets	$	(23	)	$	(2	)	$	10
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	5		$	19		$	(8	)
Liabilities held for sale	—			—			17
Total recurring Level 3 liabilities	$	5		$	19		$	9

The amounts in the table above represent the change in unrealized gains and losses included in net income for the period of time that the asset or liability was determined to be in Level 3. These gains and losses total $(18) million in 2016 and are reported as follows: $(36) million in realized capital gains and losses, $13 million in net investment income, $(4) million in interest credited to contractholder funds and $9 million in life and annuity contract benefits. These gains and losses total $17 million in 2015 and are reported as follows: $(20) million in realized capital gains and losses, $18 million in net investment income, $26 million in interest credited to contractholder funds and $(7) million in life and annuity contract benefits. These gains and losses total $19 million in 2014 and are reported as follows: $(3) million in realized capital gains and losses, $12 million in net investment income, $(5) million in interest credited to contractholder funds and $15 million in life and annuity contract benefits.

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

Financial assets



($ in millions)	December 31, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	4,486	$	4,514	$	4,338	$	4,489
Cost method limited partnerships	1,282		1,493		1,154		1,450
Bank loans	1,669		1,677		1,565		1,527
Agent loans	467		467		422		408

The fair value of mortgage loans is based on discounted contractual cash flows or, if the loans are impaired due to credit reasons, the fair value of collateral less costs to sell. Risk adjusted discount rates are selected using current rates at which similar loans would be made to borrowers with similar characteristics, using similar types of properties as collateral. The fair value of cost method limited partnerships is determined using reported net asset values. The fair value of bank loans, which are reported in other investments, is based on broker quotes from brokers familiar with the loans and current market conditions. The fair value of agent loans, which are reported in other investments, is based on discounted cash flow calculations. Risk adjusted discount rates are selected using current rates at which similar loans would be made to borrowers with similar characteristics. The fair value measurements for mortgage loans, cost method limited partnerships, bank loans and agent loans are categorized as Level 3.

Financial liabilities



($ in millions)	December 31, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	11,313	$	12,009	$	12,424	$	12,874
Long-term debt	6,347		6,920		5,124		5,648
Liability for collateral	1,129		1,129		840		840

The fair value of contractholder funds on investment contracts is based on the terms of the underlying contracts incorporating current market-based crediting rates for similar contracts that reflect the Company’s own credit risk. Deferred annuities classified in contractholder funds are valued based on discounted cash flow models that incorporate current market-based margins and reflect the Company’s own credit risk. Immediate annuities without life contingencies and funding agreements are valued based on discounted cash flow models that incorporate current market-based implied interest rates and reflect the Company’s own credit risk. The fair value measurement for contractholder funds on investment contracts is categorized as Level 3.

The fair value of long-term debt is based on market observable data (such as the fair value of the debt when traded as an asset) or is determined using discounted cash flow calculations based on current interest rates for instruments with comparable terms and considers the Company’s own credit risk. The liability for collateral is valued at carrying value due to its short-term nature. The fair value measurements for long-term debt and liability for collateral are categorized as Level 2.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments and Off-balance sheet Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Financial Instruments and Off-balance sheet Financial Instruments

Derivative Financial Instruments and Off-balance sheet Financial Instruments

The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication. Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations.

Property-Liability may use interest rate swaps, swaptions, futures and options to manage the interest rate risks of existing investments. These instruments are utilized to change the duration of the portfolio in order to offset the economic effect that interest rates would otherwise have on the fair value of its fixed income securities. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Equity index futures and options are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values. In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts. Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations.

Allstate Financial utilizes several derivative strategies to manage risk. Asset-liability management is a risk management strategy that is principally employed by Allstate Financial to balance the respective interest-rate sensitivities of its assets and liabilities. Depending upon the attributes of the assets acquired and liabilities issued, derivative instruments such as interest rate swaps, caps, swaptions and futures are utilized to change the interest rate characteristics of existing assets and liabilities to ensure the relationship is maintained within specified ranges and to reduce exposure to rising or falling interest rates. Credit default swaps are typically used to mitigate the credit risk within the Allstate Financial fixed income portfolio. Futures and options are used for hedging the equity exposure contained in Allstate Financial’s equity indexed life and annuity product contracts that offer equity returns to contractholders. In addition, Allstate Financial uses equity index futures to offset valuation losses in the equity portfolio during periods of declining equity market values. Interest rate swaps are used to hedge interest rate risk inherent in funding agreements. Foreign currency swaps and forwards are primarily used by Allstate Financial to reduce the foreign currency risk associated with holding foreign currency denominated investments.

The Company may also use derivatives to manage the risk associated with corporate actions, including the sale of a business. During 2014, swaptions were utilized to hedge the expected proceeds from the disposition of LBL.

Asset replication refers to the “synthetic” creation of assets through the use of derivatives. The Company replicates fixed income securities using a combination of a credit default swap or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically replicate the economic characteristics of one or more cash market securities. The Company replicates equity securities using futures to increase equity exposure.

The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of embedded derivatives reported in net income. The Company’s primary embedded derivatives are equity options in life and annuity product contracts, which provide equity returns to contractholders and conversion options in fixed income securities, which provide the Company with the right to convert the instrument into a predetermined number of shares of common stock.

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. Allstate Financial designates certain investment risk transfer reinsurance agreements as fair value hedges when the hedging instrument is highly effective in offsetting the risk of changes in the fair value of the hedged item. Allstate Financial designates certain of its foreign currency swap contracts as cash flow hedges when the hedging instrument is highly effective in offsetting the exposure of variations in cash flows for the hedged risk that could affect net income. Amounts are reclassified to net investment income or realized capital gains and losses as the hedged item affects net income.

The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Consolidated Statements of Financial Position. For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. As of December 31, 2016, the Company pledged $9 million of cash in the form of margin deposits.

For those derivatives which qualify for fair value hedge accounting, net income includes the changes in the fair value of both the derivative instrument and the hedged risk, and therefore reflects any hedging ineffectiveness. For cash flow hedges, gains and losses are amortized from accumulated other comprehensive income and are reported in net income in the same period the forecasted transactions being hedged impact net income.

Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis.

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Consolidated Statement of Financial Position as of December 31, 2016.



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	49	n/a	$	5		$	5	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	65		n/a	1			1		—
Equity and index contracts
Options	Other investments	—		3,972	88			88		—
Financial futures contracts	Other assets	—		261	—			—		—
Foreign currency contracts
Foreign currency forwards	Other investments	759		n/a	—			24		(24		)
Credit default contracts
Credit default swaps – buying protection	Other investments	87		n/a	(4		)	—		(4		)
Credit default swaps – selling protection	Other investments	140		n/a	2			2		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		1,054		4,233	88			116		(28		)
Total asset derivatives		$	1,103	4,233	$	93		$	121	$	(28	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	$	—	4,848	$	(39	)	$	—	$	(39	)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	391		n/a	(34		)	—		(34		)
Guaranteed withdrawal benefits	Contractholder funds	290		n/a	(9		)	—		(9		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,751		n/a	(247		)	—		(247		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	136		n/a	(2		)	—		(2		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	105		n/a	(3		)	—		(3		)
Subtotal		2,673		4,848	(334		)	—		(334		)
Total liability derivatives		2,673		4,848	(334		)	$	—	$	(334	)
Total derivatives		$	3,776	9,081	$	(241	)

______________________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	45	n/a	$	6		$	6	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	42		n/a	—			—		—
Equity and index contracts
Options and warrants ⁽²⁾	Other investments	—		3,730	44			44		—
Financial futures contracts	Other assets	—		1,897	2			2		—
Foreign currency contracts
Foreign currency forwards	Other investments	185		n/a	1			2		(1		)
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	1,000		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	112		n/a	4			5		(1		)
Credit default swaps – selling protection	Other investments	150		n/a	2			2		—
Other contracts
Other contracts	Other investments	31		n/a	1			1		—
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		1,523		5,627	55			57		(2		)
Total asset derivatives		$	1,568	5,627	$	61		$	63	$	(2	)

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	19	n/a	$	4		$	4	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	—			—		—
Interest rate cap agreements	Other liabilities & accrued expenses	72		n/a	1			1		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		4,406	(7		)	—		(7		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	361		n/a	(12		)	1		(13		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	481		n/a	(38		)	—		(38		)
Guaranteed withdrawal benefits	Contractholder funds	332		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,781		n/a	(247		)	—		(247		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	88		n/a	(2		)	—		(2		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	105		n/a	(8		)	—		(8		)
Subtotal		3,390		4,406	(327		)	2		(329		)
Total liability derivatives		3,409		4,406	(323		)	$	6	$	(329	)
Total derivatives		$	4,977	10,033	$	(262	)

______________________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)


⁽²⁾	In addition to the number of contracts presented in the table, the Company held 220 stock rights and warrants. Stock rights and warrants can be converted to cash upon sale of those instruments or exercised for shares of common stock.

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.



($ in millions)				Offsets
	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged			Net amount
December 31, 2016
Asset derivatives	$	31		$	(28	)	$	19		$	22		$	(9	)	$	13
Liability derivatives	(33		)	28			—			(5		)	4			(1		)

December 31, 2015
Asset derivatives	$	21		$	(8	)	$	(5	)	$	8		$	(4	)	$	4
Liability derivatives	(25		)	8			(1		)	(18		)	9			(9		)

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships for the years ended December 31. Amortization of net gains from accumulated other comprehensive income related to cash flow hedges is expected to be a gain of $2 million during the next twelve months. There was no hedge ineffectiveness reported in realized gains and losses in 2016, 2015 or 2014.



($ in millions)	2016		2015			2014
Gain recognized in OCI on derivatives during the period	$	—	$	10		$	12
Gain (loss) recognized in OCI on derivatives during the term of the hedging relationship	2		6			(2		)
Gain (loss) reclassified from AOCI into income (net investment income)	1		(1		)	(2		)
Gain (loss) reclassified from AOCI into income (realized capital gains and losses)	3		3			(2		)

The following tables present gains and losses from valuation and settlements reported on derivatives not designated as accounting hedging instruments in the Consolidated Statements of Operations. In 2016, 2015 and 2014, the Company had no derivatives used in fair value hedging relationships.



($ in millions)	Realized capital gains and losses			Life and annuity contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Loss on disposition of operations			Total gain (loss) recognized in net income on derivatives
2016
Equity and index contracts	$	(12	)	$	—		$	18		$	19		$	—		$	25
Embedded derivative financial instruments	—			9			—			—			—			9
Foreign currency contracts	17			—			—			(35		)	—			(18		)
Credit default contracts	(5		)	—			—			—			—			(5		)
Total	$	—		$	9		$	18		$	(16	)	$	—		$	11

2015
Interest rate contracts	$	1		$	—		$	—		$	—		$	—		$	1
Equity and index contracts	1			—			(9		)	(1		)	—			(9		)
Embedded derivative financial instruments	—			(7		)	31			—			—			24
Foreign currency contracts	(24		)	—			—			(8		)	—			(32		)
Credit default contracts	(2		)	—			—			—			—			(2		)
Total	$	(24	)	$	(7	)	$	22		$	(9	)	$	—		$	(18	)

2014
Interest rate contracts	$	(10	)	$	—		$	—		$	—		$	(4	)	$	(14	)
Equity and index contracts	(18		)	—			38			9			—			29
Embedded derivative financial instruments	—			15			(14		)	—			—			1
Foreign currency contracts	(9		)	—			—			(8		)	—			(17		)
Credit default contracts	1			—			—			—			—			1
Other contracts	—			—			(2		)	—			—			(2		)
Total	$	(36	)	$	15		$	22		$	1		$	(4	)	$	(2	)

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of December 31, 2016, counterparties pledged $13 million in cash and securities to the Company, and the Company pledged $27 million in cash and securities to counterparties as collateral posted under MNAs for contracts without credit-risk-contingent features. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements.

The following table summarizes the counterparty credit exposure as of December 31 by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	2016							2015
Rating ⁽¹⁾	Number of counter-parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral ⁽²⁾		Number of counter-parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral ⁽²⁾
AA–	2	$	80	$	2	$	2	—	$	—	$	—	$	—
A+	5	698		20		9		1	82		5		—
A	—	—		—		—		5	375		9		6
A–	1	110		1		1		1	41		3		—
BBB+	—	—		—		—		2	49		—		1
Total	8	$	888	$	23	$	12	9	$	547	$	17	$	7

______________________________


⁽¹⁾	Rating is the lower of S&P or Moody’s ratings.


⁽²⁾	Only OTC derivatives with a net positive fair value are included for each counterparty.

Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

Certain of the Company’s derivative instruments contain credit-risk-contingent termination events, cross-default provisions and credit support annex agreements. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s, ALIC’s or Allstate Life Insurance Company of New York’s (“ALNY”) financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. Credit-risk-contingent credit support annex agreements specify the amount of collateral the Company must post to counterparties based on AIC’s, ALIC’s or ALNY’s financial strength credit ratings by Moody’s or S&P, or in the event AIC, ALIC or ALNY are no longer rated by either Moody’s or S&P.

The following summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position as of December 31, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.



($ in millions)	2016			2015
Gross liability fair value of contracts containing credit-risk-contingent features	$	9		$	21
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7		)	(3		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	—			(13		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	2		$	5

Credit derivatives – selling protection

A credit default swap (“CDS”) is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. In selling protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative. CDS typically have a five-year term.

The following table shows the CDS notional amounts by credit rating and fair value of protection sold.



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
December 31, 2016
Single name
Corporate debt	$	20	$	10	$	35	$	—	$	65	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(3		)
Index
Corporate debt	1		19		50		10		80		1
Total	$	21	$	29	$	185	$	10	$	245	$	(1	)
December 31, 2015
Single name
Corporate debt	$	20	$	10	$	45	$	—	$	75	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(8		)
Index
Corporate debt	1		20		52		7		80		1
Total	$	21	$	30	$	197	$	7	$	255	$	(6	)

In selling protection with CDS, the Company sells credit protection on an identified single name, a basket of names in a first-to-default (“FTD”) structure or credit derivative index (“CDX”) that is generally investment grade, and in return receives periodic premiums through expiration or termination of the agreement. With single name CDS, this premium or credit spread generally corresponds to the difference between the yield on the reference entity’s public fixed maturity cash instruments and swap rates at the time the agreement is executed. With a FTD basket, because of the additional credit risk inherent in a basket of named reference entities, the premium generally corresponds to a high proportion of the sum of the credit spreads of the names in the basket and the correlation between the names. CDX is utilized to take a position on multiple (generally 125) reference entities. Credit events are typically defined as bankruptcy, failure to pay, or restructuring, depending on the nature of the reference entities. If a credit event occurs, the Company settles with the counterparty, either through physical settlement or cash settlement. In a physical settlement, a reference asset is delivered by the buyer of protection to the Company, in exchange for cash payment at par, whereas in a cash settlement, the Company pays the difference between par and the prescribed value of the reference asset. When a credit event occurs in a single name or FTD basket (for FTD, the first credit event occurring for any one name in the basket), the contract terminates at the time of settlement. For CDX, the reference entity’s name incurring the credit event is removed from the index while the contract continues until expiration. The maximum payout on a CDS is the contract notional amount. A physical settlement may afford the Company with recovery rights as the new owner of the asset.

The Company monitors risk associated with credit derivatives through individual name credit limits at both a credit derivative and a combined cash instrument/credit derivative level. The ratings of individual names for which protection has been sold are also monitored.

Off-balance sheet financial instruments

The contractual amounts of off-balance sheet financial instruments as of December 31 are as follows:



($ in millions)	2016		2015
Commitments to invest in limited partnership interests	$	2,979	$	2,551
Private placement commitments	69		89
Municipal bond forward commitments	—		36
Other loan commitments	83		46

In the preceding table, the contractual amounts represent the amount at risk if the contract is fully drawn upon, the counterparty defaults and the value of any underlying security becomes worthless. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk.

Commitments to invest in limited partnership interests represent agreements to acquire new or additional participation in certain limited partnership investments. The Company enters into these agreements in the normal course of business. Because the investments in limited partnerships are not actively traded, it is not practical to estimate the fair value of these commitments.

Private placement commitments represent commitments to purchase private placement debt and private equity securities at a specified future date. The Company enters into these agreements in the normal course of business. The fair value of the debt commitments generally cannot be estimated on the date the commitment is made as the terms and conditions of the underlying private placement securities are not yet final. Because the private equity securities are not actively traded, it is not practical to estimate fair value of the commitments.

Municipal bond forward commitments represent purchases of newly issued debt securities with a settlement period in excess of a standard period of generally 30-60 days. The Company enters into these agreements in the normal course of business.

Other loan commitments are agreements to lend to a borrower provided there is no violation of any condition established in the contract. The Company enters into these agreements to commit to future loan fundings at predetermined interest rates. Commitments generally have varying expiration dates or other termination clauses. The fair value of these commitments is insignificant.

Reserve for Property-Liability Insurance Claims and Claims Expense

12 Months Ended

Dec. 31, 2016

Reserve for Property-Liability Insurance Claims and Claims Expense

Reserve for Property-Liability Insurance Claims and Claims Expense

The Company establishes reserves for claims and claims expense on reported and unreported claims of insured losses. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in laws and regulations, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process.

Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in property-liability insurance claims and claims expense in the Consolidated Statements of Operations in the period such changes are determined.

Activity in the reserve for property-liability insurance claims and claims expense is summarized as follows:



($ in millions)	2016			2015		2014
Balance as of January 1	$	23,869		$	22,923	$	21,857
Less reinsurance recoverables	5,892			5,694		4,664
Net balance as of January 1	17,977			17,229		17,193
Incurred claims and claims expense related to:
Current year	22,238			20,953		19,512
Prior years	(17		)	81		(84		)
Total incurred	22,221			21,034		19,428
Claims and claims expense paid related to:
Current year	14,222			13,660		12,924
Prior years	6,910			6,626		6,468
Total paid	21,132			20,286		19,392
Net balance as of December 31	19,066			17,977		17,229
Plus reinsurance recoverables	6,184			5,892		5,694
Balance as of December 31	$	25,250		$	23,869	$	22,923

Incurred claims and claims expense represents the sum of paid losses and reserve changes in the calendar year. This expense includes losses from catastrophes of $2.57 billion, $1.72 billion and $1.99 billion in 2016, 2015 and 2014, respectively, net of reinsurance and other recoveries (see Note 10). Catastrophes are an inherent risk of the property-liability insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position.

The Company calculates and records a single best reserve estimate for losses from catastrophes, in conformance with generally accepted actuarial standards. As a result, management believes that no other estimate is better than the recorded amount. Due to the uncertainties involved, including the factors described above, the ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. Accordingly, management believes that it is not practical to develop a meaningful range for any such changes in losses incurred.

During 2016, incurred claims and claims expense related to prior years was primarily composed of net decreases in auto reserves of $155 million primarily due to claim severity development for bodily injury coverage that was better than expected, net decreases in homeowners reserves of $24 million due to favorable non-catastrophe reserve reestimates, net increases in other reserves of $57 million primarily due to unfavorable commercial business non-catastrophe losses , and net increases in Discontinued Lines and Coverages reserves of $105 million. Incurred claims and claims expense includes unfavorable catastrophe loss reestimates of $6 million, net of reinsurance and other recoveries.

During 2015, incurred claims and claims expense related to prior years was primarily composed of net increases in auto reserves of $30 million primarily due to claim severity development for bodily injury coverage that was more than expected and litigation settlements, net decreases in homeowners reserves of $24 million due to favorable non-catastrophe reserve reestimates, net increases in other reserves of $22 million, and net increases in Discontinued Lines and Coverages reserves of $53 million. Incurred claims and claims expense includes favorable catastrophe loss reestimates of $15 million, net of reinsurance and other recoveries.

During 2014, incurred claims and claims expense related to prior years was primarily composed of net decreases in auto reserves of $238 million primarily due to claim severity development that was better than expected, net increases in homeowners reserves of $29 million due to unfavorable non-catastrophe reserve reestimates, net increases in other reserves of $13 million, and net increases in Discontinued Lines and Coverages reserves of $112 million. Incurred claims and claims expense includes unfavorable catastrophe loss reestimates of $43 million, net of reinsurance and other recoveries.

The following presents information about incurred and paid claims development as of December 31, 2016, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included in the net incurred claims amounts. See Note 2 for the accounting policy and methodology for determining reserves for claims and claims expense, including both reported and IBNR claims. The cumulative number of reported claims is identified by coverage and excludes reported claims for industry pools and facilities where information is not available. The information about incurred and paid claims development for the 2012 to 2015 years, and the average annual percentage payout of incurred claims by age as of December 31, 2016, is presented as required supplementary information.

Auto Insurance



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of reinsurance										IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										As of December 31, 2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	11,299	$	11,187	$	11,079	$	11,046	$	11,015	$	444	5,801,971
2013	—		11,329		11,269		11,273		11,204		888		5,890,375
2014	—		—		12,166		12,220		12,121		1,603		6,335,312
2015	—		—		—		13,521		13,466		2,963		6,754,829
2016	—		—		—		—		14,265		5,896		6,572,689
									$	62,071

	Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	6,818	$	8,760	$	9,660	$	10,251	$	10,571
2013	—		6,662		8,826		9,770		10,316
2014	—		—		7,312		9,586		10,518
2015	—		—		—		8,027		10,503
2016	—		—		—		—		8,369
							Total		$	50,277
All outstanding liabilities before 2012, net of reinsurance									1,167
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	12,961



Average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2016
	1 year		2 years		3 years		4 years		5 years
Auto insurance	60.2	%	19.1	%	8.0	%	5.2	%	3.1	%

Homeowners Insurance



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of reinsurance										IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										As of December 31, 2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	3,833	$	3,915	$	3,930	$	3,913	$	3,891	$	63	1,003,156
2013	—		3,091		3,163		3,156		3,135		97		682,525
2014	—		—		3,600		3,644		3,646		172		764,101
2015	—		—		—		3,565		3,615		323		717,025
2016	—		—		—		—		3,964		1,020		755,683
									$	18,251

	Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	2,942	$	3,606	$	3,742	$	3,802	$	3,828
2013	—		2,283		2,878		2,991		3,038
2014	—		—		2,730		3,358		3,474
2015	—		—		—		2,584		3,293
2016	—		—		—		—		2,944
							Total		$	16,577
All outstanding liabilities before 2012, net of reinsurance									187
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	1,861



Average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2016
	1 year		2 years		3 years		4 years		5 years
Homeowners insurance	74.2	%	19.1	%	2.8	%	1.4	%	0.7	%

The reconciliation of the net incurred and paid claims development tables above to the reserve for property-liability insurance claims and claims expense in the Consolidated Statement of Financial Position as of December 31, 2016 is as follows:



($ in millions)
Net outstanding liabilities:
Auto insurance	$	12,961
Homeowners insurance	1,861
Other personal lines	1,310
Commercial lines	597
Other business lines	22
Discontinued Lines and Coverages ⁽¹⁾	1,382
Unallocated loss adjustment expenses	933
Net reserve for property-liability insurance claims and claims expense	19,066

Reinsurance recoverable:
Auto insurance	5,422
Homeowners insurance	9
Other personal lines	212
Commercial lines	21
Other business lines	10
Discontinued Lines and Coverages	508
Unallocated loss adjustment expenses	2
Total reinsurance recoverable	6,184
Gross reserve for property-liability insurance claims and claims expense	$	25,250

______________________________


⁽¹⁾	Discontinued Lines and Coverages includes business in run-off. All of the claims relate to accident years more than 10 years ago. IBNR reserves represent $800 million of the total reserves as of December 31, 2016.

Management believes that the reserve for property-liability insurance claims and claims expense, net of reinsurance recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Consolidated Statements of Financial Position based on available facts, technology, laws and regulations.

For further discussion of asbestos and environmental reserves, see Note 14.

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

12 Months Ended

Dec. 31, 2016

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

As of December 31, the reserve for life-contingent contract benefits consists of the following:



($ in millions)	2016		2015
Immediate fixed annuities:
Structured settlement annuities	$	6,681	$	6,673
Other immediate fixed annuities	1,941		2,041
Traditional life insurance	2,643		2,584
Accident and health insurance	873		844
Other	101		105
Total reserve for life-contingent contract benefits	$	12,239	$	12,247

The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits:



Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 2.9% to 9.0%	Present value of contractually specified future benefits
Other immediate fixed annuities	1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table; 1983 individual annuity mortality table with internal modifications	Interest rate assumptions range from 0% to 11.5%	Present value of expected future benefits based on historical experience
Traditional life insurance	Actual company experience plus loading	Interest rate assumptions range from 2.5% to 11.3%	Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance	Actual company experience plus loading	Interest rate assumptions range from 3.0% to 7.0%	Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other: Variable annuity guaranteed minimum death benefits⁽¹⁾	Annuity 2012 mortality table with internal modifications	Interest rate assumptions range from 2.0% to 5.8%	Projected benefit ratio applied to cumulative assessments

______________________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (collectively “Prudential”).

To the extent that unrealized gains on fixed income securities would result in a premium deficiency had those gains actually been realized, a premium deficiency reserve is recorded for certain immediate annuities with life contingencies. A liability is included in the reserve for life-contingent contract benefits with respect to this deficiency. The offset to this liability is recorded as a reduction of the unrealized net capital gains included in accumulated other comprehensive income. This liability was zero as of both December 31, 2016 and 2015.

As of December 31, contractholder funds consist of the following:



($ in millions)	2016		2015
Interest-sensitive life insurance	$	8,062	$	7,975
Investment contracts:
Fixed annuities	11,933		12,974
Funding agreements backing medium-term notes	—		85
Other investment contracts	265		261
Total contractholder funds	$	20,260	$	21,295

The following table highlights the key contract provisions relating to contractholder funds:



Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0% to 10.5% for equity-indexed life (whose returns are indexed to the S&P 500) and 1.0% to 6.0% for all other products	Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities	Interest rates credited range from 0% to 9.8% for immediate annuities; (8.0)% to 13.3% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 6.0% for all other products	Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 17.9% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Other investment contracts: Guaranteed minimum income, accumulation and withdrawal benefits on variable ⁽¹⁾ and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities	Interest rates used in establishing reserves range from 1.5% to 10.3%	Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract

______________________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential.

Contractholder funds as of December 31, 2015 included funding agreements held by a VIE, Allstate Life Global Funding, that issued medium-term notes. The VIE’s primary assets were funding agreements used exclusively to back medium-term note programs.

Contractholder funds activity for the years ended December 31 is as follows:



($ in millions)	2016			2015			2014
Balance, beginning of year	$	21,295		$	22,529		$	24,304
Classified as held for sale, beginning balance	—			—			10,945
Total, including those classified as held for sale	21,295			22,529			35,249
Deposits	1,164			1,203			1,333
Interest credited	722			760			919
Benefits	(966		)	(1,077		)	(1,197		)
Surrenders and partial withdrawals	(1,053		)	(1,278		)	(2,273		)
Maturities of and interest payments on institutional products	(86		)	(1		)	(2		)
Contract charges	(829		)	(818		)	(881		)
Net transfers from separate accounts	5			7			7
Other adjustments	8			(30		)	36
Sold in LBL disposition	—			—			(10,662		)
Balance, end of year	$	20,260		$	21,295		$	22,529

The Company offered various guarantees to variable annuity contractholders. In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential. Liabilities for variable contract guarantees related to death benefits are included in the reserve for life-contingent contract benefits and the liabilities related to the income, withdrawal and accumulation benefits are included in contractholder funds. All liabilities for variable contract guarantees are reported on a gross basis on the balance sheet with a corresponding reinsurance recoverable asset for those contracts subject to reinsurance.

Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death, a specified contract anniversary date, partial withdrawal or annuitization, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. The account balances of variable annuities contracts’ separate accounts with guarantees included $2.93 billion and $3.22 billion of equity, fixed income and balanced mutual funds and $364 million and $341 million of money market mutual funds as of December 31, 2016 and 2015, respectively.

The table below presents information regarding the Company’s variable annuity contracts with guarantees. The Company’s variable annuity contracts may offer more than one type of guarantee in each contract; therefore, the sum of amounts listed exceeds the total account balances of variable annuity contracts’ separate accounts with guarantees.



($ in millions)	December 31,
	2016		2015
In the event of death
Separate account value	$	3,298	$	3,560
Net amount at risk ⁽¹⁾	$	585	$	675
Average attained age of contractholders	70 years		69 years
At annuitization (includes income benefit guarantees)
Separate account value	$	915	$	967
Net amount at risk ⁽²⁾	$	265	$	281
Weighted average waiting period until annuitization options available	None		None
For cumulative periodic withdrawals
Separate account value	$	267	$	294
Net amount at risk ⁽³⁾	$	10	$	10
Accumulation at specified dates
Separate account value	$	310	$	371
Net amount at risk ⁽⁴⁾	$	26	$	31
Weighted average waiting period until guarantee date	3 years		4 years

______________________________


⁽¹⁾	Defined as the estimated current guaranteed minimum death benefit in excess of the current account balance as of the balance sheet date.


⁽²⁾	Defined as the estimated present value of the guaranteed minimum annuity payments in excess of the current account balance.


⁽³⁾	Defined as the estimated current guaranteed minimum withdrawal balance (initial deposit) in excess of the current account balance as of the balance sheet date.


⁽⁴⁾	Defined as the estimated present value of the guaranteed minimum accumulation balance in excess of the current account balance.

The liability for death and income benefit guarantees is equal to a benefit ratio multiplied by the cumulative contract charges earned, plus accrued interest less contract excess guarantee benefit payments. The benefit ratio is calculated as the estimated present value of all expected contract excess guarantee benefits divided by the present value of all expected contract charges. The establishment of reserves for these guarantees requires the projection of future fund values, mortality, persistency and customer benefit utilization rates. These assumptions are periodically reviewed and updated. For guarantees related to death benefits, benefits represent the projected excess guaranteed minimum death benefit payments. For guarantees related to income benefits, benefits represent the present value of the minimum guaranteed annuitization benefits in excess of the projected account balance at the time of annuitization.

Projected benefits and contract charges used in determining the liability for certain guarantees are developed using models and stochastic scenarios that are also used in the development of estimated expected gross profits. Underlying assumptions for the liability related to income benefits include assumed future annuitization elections based on factors such as the extent of benefit to the potential annuitant, eligibility conditions and the annuitant’s attained age. The liability for guarantees is re-evaluated periodically, and adjustments are made to the liability balance through a charge or credit to life and annuity contract benefits.

Guarantees related to the majority of withdrawal and accumulation benefits are considered to be derivative financial instruments; therefore, the liability for these benefits is established based on its fair value.

The following table summarizes the liabilities for guarantees.



($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products		Liability for guarantees related to income benefits		Liability for guarantees related to accumulation and withdrawal benefits		Total
Balance, December 31, 2015 ⁽¹⁾	$	223	$	68	$	75	$	366
Less reinsurance recoverables	106		64		52		222
Net balance as of December 31, 2015	117		4		23		144
Incurred guarantee benefits	26		—		11		37
Paid guarantee benefits	—		—		—		—
Net change	26		—		11		37
Net balance as of December 31, 2016	143		4		34		181
Plus reinsurance recoverables	101		40		43		184
Balance, December 31, 2016 ⁽²⁾	$	244	$	44	$	77	$	365

Balance, December 31, 2014 ⁽³⁾	$	195	$	95	$	60	$	350
Less reinsurance recoverables	98		91		45		234
Net balance as of December 31, 2014	97		4		15		116
Incurred guarantee benefits	20		—		8		28
Paid guarantee benefits	—		—		—		—
Net change	20		—		8		28
Net balance as of December 31, 2015	117		4		23		144
Plus reinsurance recoverables	106		64		52		222
Balance, December 31, 2015 ⁽¹⁾	$	223	$	68	$	75	$	366

______________________________


⁽¹⁾	Included in the total liability balance as of December 31, 2015 are reserves for variable annuity death benefits of $105 million, variable annuity income benefits of $65 million, variable annuity accumulation benefits of $38 million, variable annuity withdrawal benefits of $14 million and other guarantees of $144 million.


⁽²⁾	Included in the total liability balance as of December 31, 2016 are reserves for variable annuity death benefits of $100 million, variable annuity income benefits of $40 million, variable annuity accumulation benefits of $34 million, variable annuity withdrawal benefits of $9 million and other guarantees of $182 million.


⁽³⁾	Included in the total liability balance as of December 31, 2014 are reserves for variable annuity death benefits of $96 million, variable annuity income benefits of $92 million, variable annuity accumulation benefits of $32 million, variable annuity withdrawal benefits of $13 million and other guarantees of $117 million.

Reinsurance

12 Months Ended

Dec. 31, 2016

Reinsurance Disclosures [Abstract]

Reinsurance

The effects of reinsurance on property-liability insurance premiums written and earned and life and annuity premiums and contract charges for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Property-liability insurance premiums written
Direct	$	32,614		$	31,924		$	30,686
Assumed	47			39			48
Ceded	(1,061		)	(1,092		)	(1,120		)
Property-liability insurance premiums written, net of reinsurance	$	31,600		$	30,871		$	29,614
Property-liability insurance premiums earned
Direct	$	32,249		$	31,274		$	29,914
Assumed	45			41			45
Ceded	(987		)	(1,006		)	(1,030		)
Property-liability insurance premiums earned, net of reinsurance	$	31,307		$	30,309		$	28,929
Life and annuity premiums and contract charges
Direct	$	1,766		$	1,641		$	1,944
Assumed	818			849			629
Ceded	(309		)	(332		)	(416		)
Life and annuity premiums and contract charges, net of reinsurance	$	2,275		$	2,158		$	2,157

Property-Liability

The Company purchases reinsurance after evaluating the financial condition of the reinsurer, as well as the terms and price of coverage. Developments in the insurance and reinsurance industries have fostered a movement to segregate asbestos, environmental and other discontinued lines exposures into separate legal entities with dedicated capital. Regulatory bodies in certain cases have supported these actions. The Company is unable to determine the impact, if any, that these developments will have on the collectability of reinsurance recoverables in the future.

Property-Liability reinsurance recoverable

Total amounts recoverable from reinsurers as of December 31, 2016 and 2015 were $6.28 billion and $5.98 billion, respectively, including $93 million and $86 million, respectively, related to property-liability losses paid by the Company and billed to reinsurers, and $6.18 billion and $5.89 billion, respectively, estimated by the Company with respect to ceded unpaid losses (including IBNR), which are not billable until the losses are paid.

With the exception of the recoverable balances from the Michigan Catastrophic Claims Association (“MCCA”), Lloyd’s of London, New Jersey Property-Liability Insurance Guaranty Association (“PLIGA”) and other industry pools and facilities, the largest reinsurance recoverable balance the Company had outstanding was $61 million and $62 million from Westport Insurance Corporation as of December 31, 2016 and 2015, respectively. No other amount due or estimated to be due from any single property-liability reinsurer was in excess of $35 million and $32 million as of December 31, 2016 and 2015, respectively.

The allowance for uncollectible reinsurance was $84 million and $80 million as of December 31, 2016 and 2015, respectively, and is primarily related to the Company’s Discontinued Lines and Coverages segment.

Industry pools and facilities

Reinsurance recoverable on paid and unpaid claims including IBNR as of December 31, 2016 and 2015 includes $4.95 billion and $4.66 billion, respectively, from the MCCA. The MCCA is a mandatory insurance coverage and reinsurance indemnification mechanism for personal injury protection losses that provides indemnification for losses over a retention level that increases every other MCCA fiscal year by the lesser of 6% or the increase in the Consumer Price Index. The retention level will be $555 thousand per claim for the fiscal two-years ending June 30, 2019 compared to $545 thousand per claim for the fiscal two-years ending June 30, 2017. The MCCA is obligated to fund the ultimate liability for member companies (companies actively writing motor vehicle coverage in Michigan and those with runoff policies) qualifying claims and claims expenses. The MCCA operates similar to a reinsurance program and is annually funded by participating member companies (companies actively writing motor vehicle coverage in Michigan) through a per vehicle annual assessment. The MCCA has been legally authorized to annually assess participating member companies pursuant to enabling legislation that describes both the annual determination and assessment. This assessment is recorded as a component of the premiums charged to the Company’s customers. These assessments paid to the MCCA provide funds for the indemnification for losses described above. The MCCA is required to assess an amount each year sufficient to cover members’ actuarially determined present value of expected payments on lifetime claims of all persons expected to be catastrophically injured in that year, its operating expenses, and adjustments for the amount of excesses or deficiencies in prior assessments. The MCCA prepares statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the State of Michigan Department of Insurance and Financial Services (“MI DOI”). The MI DOI has granted the MCCA a statutory permitted practice that expires in 2019 to discount its liabilities for loss and loss adjustment expense. As of June 30, 2016, the date of its most recent annual financial report, the MCCA had cash and invested assets of $18.48 billion and an accumulated deficit of $1.74 billion. The permitted practice reduced the accumulated deficit by $42.27 billion.

Allstate sells and administers policies as a participant in the National Flood Insurance Program (“NFIP”). The amounts recoverable as of December 31, 2016 and 2015 were $77 million and $27 million, respectively. Ceded premiums earned include $274 million, $293 million and $312 million in 2016, 2015 and 2014, respectively. Ceded losses incurred include $537 million, $120 million and $38 million in 2016, 2015 and 2014, respectively. Under the arrangement, the Federal Government pays all covered claims and certain qualifying claim expenses.

The PLIGA, as the statutory administrator of the New Jersey Unsatisfied Claim and Judgment Fund (“UCJF”), provides compensation to qualified claimants for personal injury protection, bodily injury, or death caused by private passenger automobiles operated by uninsured or “hit and run” drivers. The UCJF also provides private passenger stranger pedestrian personal injury protection benefits when no other coverage is available. The fund provides reimbursement to insurers for the medical benefits portion of personal injury protection coverage paid in excess of $75,000 with no limits for policies issued or renewed prior to January 1, 1991 and in excess of $75,000 and capped at $250,000 for policies issued or renewed from January 1, 1991 to December 31, 2004. The amounts recoverable as of December 31, 2016 and 2015 were $506 million and $500 million, respectively.

Ceded premiums earned under the Florida Hurricane Catastrophe Fund (“FHCF”) agreement were $12 million, $13 million and $11 million in 2016, 2015 and 2014, respectively. There were no ceded losses incurred in 2016, 2015 or 2014. The Company has access to reimbursement provided by the FHCF for 90% of qualifying personal property losses that exceed its current retention of $58 million for the 2 largest hurricanes and $19 million for other hurricanes, up to a maximum total of $185 million effective from June 1, 2016 to May 31, 2017. There were no amounts recoverable from the FHCF as of December 31, 2016 or 2015.

Catastrophe reinsurance

The Company has the following catastrophe reinsurance agreements in effect as of December 31, 2016:


•	The majority of our program comprises multi-year contracts, primarily placed in the traditional reinsurance market, such that one third of the program is renewed every year. The duration of the contracts in the program vary from one to seven-year terms.


•	Coverage is generally purchased on a broad geographic, product line and multiple peril loss basis.


•	The Company purchases reinsurance from traditional reinsurance companies as well as the insurance linked securities market (i.e. “PCS Agreements”).


•	Florida property and New Jersey property and auto are each covered by separate agreements, as the risk of loss is different and our subsidiaries operating in these states are separately capitalized.

The Nationwide Per Occurrence Excess Catastrophe Reinsurance program (the “Nationwide program”) provides $4.55 billion of reinsurance coverage subject to a $500 million retention and is subject to the amount of reinsurance placed in each of its ten layers. The Nationwide program comprises four agreements: The Per Occurrence Excess Catastrophe Reinsurance agreement, the 2013-1 Property Claim Services (“PCS”) Excess Catastrophe Reinsurance agreement, the 2014-1 PCS Excess Catastrophe Reinsurance agreement, and the Gap Fill Layer Catastrophe Reinsurance agreement.

•

The Per Occurrence Excess Catastrophe Reinsurance agreement, which is placed in the traditional reinsurance market, reinsures personal lines property and automobile excess catastrophe losses caused by multiple perils in every state, except Florida’s personal lines property excess catastrophe losses and both personal lines property and automobile excess catastrophe losses in New Jersey. The program comprises layers one through six and a portion of layer nine. Coverage for each of the first through fifth layers comprises three contracts, with each contract providing one-third of 95% of the total layer limit and expiring May 31, 2017, May 31, 2018 and May 31, 2019. The sixth layer is 95% placed and comprises one contract expiring May 31, 2022. The contracts for layers one through six provide $3.07 billion in per occurrence reinsurance limits subject to a $500 million retention.

Coverage for a portion of the ninth layer is provided by one contract expiring May 31, 2022, which provides 29% of $446 million or $131 million in limits in excess of $3.75 billion. Unlike the contracts expiring May 31, 2017 and May 31, 2018, the newly placed contracts expiring May 31, 2019 include coverage for automobile losses in Florida. The sixth layer and ninth layer contracts contain comparable contract terms and conditions as layers one through five. Unlike layer one through five contracts, the sixth and ninth layer contracts each contain an annual variable reset option which allows for the adjustment of each contract’s attachment and exhaustion levels within specified limits. The variable reset option requires a premium adjustment. The contracts for each of the first through fifth layers include one reinstatement of limits, per year, with premium required. The sixth and ninth layer contracts each contain one reinstatement of limits over their seven year term with premium required. Reinsurance premiums for all contracts are subject to redetermination for exposure changes on an annual basis.

•

The 2013-1 PCS Excess Catastrophe Reinsurance agreement reinsures personal lines property and automobile excess catastrophe losses caused by hurricanes in 28 states and the District of Columbia, and earthquakes, including fires following earthquakes, in California, New York and Washington and comprises portions of layers eight and nine of the program. The agreement comprises two contracts that expire May 3, 2017: a Class B Excess Catastrophe Reinsurance contract which provides 44% of $338 million or $150 million in limits in excess of a $3.22 billion attachment point, and a Class A Excess Catastrophe Reinsurance contract which provides 45% of $447 million or $200 million in limits excess of a $3.75 billion attachment point. This agreement is placed with a Bermuda insurance company, Sanders Re Ltd. (“Sanders Re”), which obtained funding from the insurance linked securities (“ILS”) market to collateralize the agreement’s limit. Amounts payable under the agreement are based on insured industry losses as reported by PCS and further indexed by annual pay-out factors specific to personal lines property and automobile exposures in the agreement’s covered areas. Reinsurance recoveries under the 2013-1 PCS agreement are limited to our ultimate net loss from a PCS reported hurricane or earthquake event, in excess of each contract’s specific attachment point and subject to each contract’s limit. The contracts do not include a reinstatement of limits.

•

The 2014-1 PCS Excess Catastrophe Reinsurance agreement reinsures personal lines property and automobile excess catastrophe losses caused by hurricanes in 29 states and the District of Columbia, and earthquakes, including fires following earthquakes, in California, New York and Washington and comprises portions of the eight, ninth and tenth layer of the program. The agreement comprises three contracts: a Class D Excess Catastrophe Reinsurance contract provides 51% of $603 million or $305 million in limits in excess of a $3.15 billion attachment point, a Class C Excess Catastrophe Reinsurance contract provides 26% of $447 million or $115 million in limits in excess of a $3.75 billion attachment point, and a Class B Excess Catastrophe Reinsurance contract provides 95% of $347 million or $330 million in limits excess of a $4.20 billion attachment point. This agreement is also placed with Sanders Re which obtained ILS market funding to collateralize the agreement’s limit and the provisions regarding amounts payable and reinsurance recoveries as described above for the 2013-1 PCS agreement. Each contract’s risk period begins on May 22, 2014, with two of the three contracts’ risk periods expiring on May 21, 2018 and one contract’s risk period expiring on May 21, 2019. The contracts comprising the agreement contain a variable reset option which the ceding entities may invoke for risk periods subsequent to the first risk period and which allows for the annual adjustment of each contract’s attachment and exhaustion levels within specified limits. The variable reset option requires a premium adjustment. The contracts do not include a reinstatement of limits.

•

The Gap Fill contract reinsures personal lines property and automobile excess catastrophe losses caused by multiple perils in all states, except Florida’s personal lines property excess catastrophe losses and both personal lines property and automobile excess catastrophe losses in New Jersey. The contract expires May 31, 2017 and provides one annual limit of $175 million in excess of a $2.75 billion retention. Recoveries under the sixth and ninth layers of The Nationwide Per Occurrence Excess Catastrophe and the PCS Excess Catastrophe Reinsurance agreements, as described above, inure to the benefit of this contract. The contract is placed in the traditional reinsurance market and does not include a reinstatement of limits. Reinsurance premium is subject to redetermination for exposure changes.

The following programs are designed apart from the Nationwide program to address distinct exposures in certain states and markets. These programs are described below and are disregarded when determining coverage under the contracts included in the Nationwide program.

The Florida Excess Catastrophe Reinsurance agreement comprises five contracts, as described below, which reinsure Castle Key Insurance Company (“CKIC”) and Castle Key Indemnity Company’s (“CKI”, and together with CKIC, “Castle Key”) for personal lines property excess catastrophe losses in Florida. The agreement includes two contacts placed in the traditional market, CKIC’s and CKI’s reimbursement contracts with the Florida Hurricane Catastrophe Fund (“mandatory FHCF contracts”), and the Sanders Re 2014-2 Contract (“Sanders Re 2014-2 contact”) placed in the ILS markets.


•	The below FHCF contract reinsures personal lines property excess catastrophe losses caused by multiple perils in Florida. The contract provides limits of $40 million in excess of $20 million and is 100% placed. The first reinstatement of limits is prepaid and the second or final reinstatement requires additional premium. Reinsurance premium is subject to redetermination for exposure changes.

•

The mandatory FHCF contracts reinsure qualifying personal lines property losses caused by storms the National Hurricane Center declares to be hurricanes. The contracts provide 90% of $191 million of limits in excess of a provisional retention with no reinstatement of limits. The limits and retentions of the mandatory FHCF contracts are calculated independently for CKIC and CKI and are subject to re-measurement based on June 30, 2016 exposure data. For each of the two largest hurricanes, the provisional retention is $60 million and retention equal to one third of that amount, or approximately $20 million, is applicable to all other hurricanes for the season beginning June 1, 2016. In addition, the FHCF’s retention is subject to adjustment upward or downward to an actual retention based on submitted exposures to the FHCF by all participants.

•

The Excess contract reinsures personal lines property excess catastrophe losses caused by multiple perils in Florida. The contract provides limits of $254 million in excess of a $20 million retention. Recoveries from the Below FHCF contract and Mandatory FHCF contracts inure to the benefit of this contract, resulting in the Excess contract providing reinsurance for loss occurrences not subject to reimbursement under the FHCF contracts but reinsured under the multiple peril Excess contract. The contract does not include a reinstatement of limits. Reinsurance premium is subject to redetermination for exposure.

•

The Sanders Re 2014-2 contract reinsures qualifying personal lines property losses caused by a named storm event, a severe thunderstorm event, or an earthquake event in Florida. The contract provides limits of $200 million in excess of $60 million and $425 million which is equivalent to the mandatory FHCF coverage as if 100% placed and reinsurance limits provided by the excess contract above the mandatory FHCF coverage, for the June 1, 2016 to May 31, 2017 risk period. These events are defined in the Sanders Re 2014-2 contract as events declared by various reporting agencies, including PCS. Should PCS cease to report on severe thunderstorms, then such event will be deemed a severe thunderstorm if Castle Key has assigned a catastrophe code to such severe thunderstorm. Sanders Re obtained funding from the ILS market to provide collateral equal to the contract’s limit. The contract does not include a reinstatement of limits.

Losses recoverable under the Company’s New Jersey, Pennsylvania, Kentucky and California reinsurance agreements, described below.

•

The New Jersey Excess Catastrophe Reinsurance agreement comprises three contracts that reinsure personal lines property and automobile excess catastrophe losses in New Jersey caused by multiple perils. The contracts expire May 31, 2017, May 31, 2018 and May 31, 2019, and provide 31.67%, 31.66% and 31.67%, respectively, of $400 million of limits excess of a provisional $169 million retention, a $162 million retention, and a $150 million retention, respectively. Each contract includes one reinstatement of limits per contract year with premium due. The reinsurance premium and retention are subject to redetermination for exposure changes on an annual basis.

•

The Pennsylvania Excess Catastrophe Reinsurance agreement comprises a three-year term contract that reinsures personal lines property excess catastrophe losses in Pennsylvania caused by multi-perils. The agreement expires May 31, 2018 and provides three limits of $100 million excess of a $100 million retention subject to two limits being available in any one contract year and is 95% placed. The reinsurance premium and retention are not subject to redetermination for exposure changes.

•

The Kentucky Earthquake Excess Catastrophe Reinsurance agreement is a three-year contract that reinsures personal lines property excess catastrophe losses in Kentucky caused by earthquakes and fires following earthquakes. The contract expires May 31, 2017 and provides $25 million in excess of a $5 million retention with two limits being available in any one contract year and is 95% placed. The reinsurance premium and retention are not subject to redetermination for exposure changes.

•

The E&S Earthquake agreement comprises one contract which reinsures personal lines property catastrophe losses in California caused by the peril of earthquake and insured by our excess and surplus lines insurer. The contract expires June 30, 2018. Unlike the contracts comprising the Nationwide Program, the E&S Earthquake agreement provides reinsurance on a 100% quota share basis with no retention. The agreement reinsures only shake damage resulting from the earthquake peril.

The Company ceded premiums earned of $381 million, $414 million and $437 million under catastrophe reinsurance agreements in 2016, 2015 and 2014, respectively.

Asbestos, environmental and other

Reinsurance recoverables include $174 million and $183 million from Lloyd’s of London as of December 31, 2016 and 2015, respectively. Lloyd’s of London, through the creation of Equitas Limited, implemented a restructuring to solidify its capital base and to segregate claims for years prior to 1993. In 2007, Berkshire Hathaway’s subsidiary, National Indemnity Company, assumed responsibility for the Equitas claim liabilities through a loss portfolio transfer reinsurance agreement and continues to runoff the Equitas claims.

Allstate Financial

The Company’s Allstate Financial segment reinsures certain of its risks to other insurers primarily under yearly renewable term, coinsurance, modified coinsurance and coinsurance with funds withheld agreements. These agreements result in a passing of the agreed-upon percentage of risk to the reinsurer in exchange for negotiated reinsurance premium payments. Modified coinsurance and coinsurance with funds withheld are similar to coinsurance, except that the cash and investments that support the liability for contract benefits are not transferred to the assuming company and settlements are made on a net basis between the companies.

For certain term life insurance policies issued prior to October 2009, Allstate Financial ceded up to 90% of the mortality risk depending on the year of policy issuance under coinsurance agreements to a pool of fourteen unaffiliated reinsurers. Effective October 2009, mortality risk on term business is ceded under yearly renewable term agreements under which Allstate Financial cedes mortality in excess of its retention, which is consistent with how Allstate Financial generally reinsures its permanent life insurance business. The following table summarizes those retention limits by period of policy issuance.



Period		Retention limits
April 2015 through current		Single life: $2 million per life Joint life: no longer offered
April 2011 through March 2015		Single life: $5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria Joint life: $8 million per life, and $10 million for contracts that meet specific criteria
July 2007 through March 2011		$5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria
September 1998 through June 2007		$2 million per life, in 2006 the limit was increased to $5 million for instances when specific criteria were met
August 1998 and prior		Up to $1 million per life

In addition, Allstate Financial has used reinsurance to effect the disposition of certain blocks of business. Allstate Financial had reinsurance recoverables of $1.41 billion and $1.44 billion as of December 31, 2016 and 2015, respectively, due from Prudential related to the disposal of substantially all of its variable annuity business that was effected through reinsurance agreements. In 2016, life and annuity premiums and contract charges of $78 million, contract benefits of $21 million, interest credited to contractholder funds of $20 million, and operating costs and expenses of $15 million were ceded to Prudential. In 2015, life and annuity premiums and contract charges of $94 million, contract benefits of $40 million, interest credited to contractholder funds of $21 million, and operating costs and expenses of $18 million were ceded to Prudential. In 2014, life and annuity premiums and contract charges of $109 million, contract benefits of $36 million, interest credited to contractholder funds of $21 million, and operating costs and expenses of $20 million were ceded to Prudential. In addition, as of December 31, 2016 and 2015, Allstate Financial had reinsurance recoverables of $144 million and $148 million, respectively, due from subsidiaries of Citigroup (Triton Insurance and American Health and Life Insurance) and Scottish Re (U.S.) Inc. in connection with the disposition of substantially all of the direct response distribution business in 2003.

Allstate Financial is the assuming reinsurer for LBL’s life insurance business sold through the Allstate agency channel and LBL’s payout annuity business in force prior to the sale of LBL on April 1, 2014. Under the terms of the reinsurance agreement, the Company is required to have a trust with assets greater than or equal to the statutory reserves ceded by LBL to the Company, measured on a monthly basis. As of December 31, 2016, the trust held $5.94 billion of investments, which are reported in the Consolidated Statement of Financial Position.

As of December 31, 2016, the gross life insurance in force was $442.36 billion of which $90.01 billion was ceded to the unaffiliated reinsurers.

Allstate Financial’s reinsurance recoverables on paid and unpaid benefits as of December 31 are summarized in the following table.



($ in millions)	2016		2015
Annuities	$	1,424	$	1,457
Life insurance	860		897
Other	184		185
Total Allstate Financial	$	2,468	$	2,539

As of both December 31, 2016 and 2015, approximately 92% of Allstate Financial’s reinsurance recoverables are due from companies rated A- or better by S&P.

- Definition

The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts.

+ References + Details

Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2016

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

Deferred policy acquisition costs for the years ended December 31 are as follows:



($ in millions)	2016
	Allstate Financial			Property-Liability			Total
Balance, beginning of year	$	1,832		$	2,029		$	3,861
Acquisition costs deferred	291			4,426			4,717
Amortization charged to income	(283		)	(4,267		)	(4,550		)
Effect of unrealized gains and losses	(74		)	—			(74		)
Balance, end of year	$	1,766		$	2,188		$	3,954

	2015
	Allstate Financial			Property-Liability			Total
Balance, beginning of year	$	1,705		$	1,820		$	3,525
Acquisition costs deferred	285			4,311			4,596
Amortization charged to income	(262		)	(4,102		)	(4,364		)
Effect of unrealized gains and losses	104			—			104
Balance, end of year	$	1,832		$	2,029		$	3,861

	2014
	Allstate Financial			Property-Liability			Total
Balance, beginning of year	$	1,747		$	1,625		$	3,372
Classified as held for sale, beginning balance	743			—			743
Total, including those classified as held for sale	2,490			1,625			4,115
Acquisition costs deferred	280			4,070			4,350
Amortization charged to income	(260		)	(3,875		)	(4,135		)
Effect of unrealized gains and losses	(98		)	—			(98		)
Sold in LBL disposition	(707		)	—			(707		)
Balance, end of year	$	1,705		$	1,820		$	3,525

DSI activity for Allstate Financial, which primarily relates to fixed annuities and interest-sensitive life contracts, for the years ended December 31 was as follows:



($ in millions)	2016			2015			2014
Balance, beginning of year	$	45		$	44		$	42
Classified as held for sale, beginning balance	—			—			28
Total, including those classified as held for sale	45			44			70
Sales inducements deferred	1			3			4
Amortization charged to income	(5		)	(4		)	(4		)
Effect of unrealized gains and losses	(1		)	2			(3		)
Sold in LBL disposition	—			—			(23		)
Balance, end of year	$	40		$	45		$	44

Capital Structure

12 Months Ended

Dec. 31, 2016

Capital Structure

Capital Structure

Debt

Total debt outstanding as of December 31 consisted of the following:



($ in millions)	2016			2015
6.75% Senior Debentures, due 2018	$	176		$	176
7.45% Senior Notes, due 2019 ⁽¹⁾	317			317
3.15% Senior Notes, due 2023 ⁽¹⁾	500			500
3.28% Senior Notes, due 2026 ⁽¹⁾	550			—
6.125% Senior Notes, due 2032 ⁽¹⁾	159			159
5.35% Senior Notes due 2033 ⁽¹⁾	323			323
5.55% Senior Notes due 2035 ⁽¹⁾	546			546
5.95% Senior Notes, due 2036 ⁽¹⁾	386			386
6.90% Senior Debentures, due 2038	165			165
5.20% Senior Notes, due 2042 ⁽¹⁾	62			62
4.50% Senior Notes, due 2043 ⁽¹⁾	500			500
4.20% Senior Notes, due 2046 ⁽¹⁾	700			—
5.10% Subordinated Debentures, due 2053	500			500
5.75% Subordinated Debentures, due 2053	800			800
6.125% Junior Subordinated Debentures, due 2067	224			241
6.50% Junior Subordinated Debentures, due 2067	500			500
Long-term debt total principal	6,408			5,175
Debt issuance costs	(61		)	(51		)
Total long-term debt	6,347			5,124
Short-term debt ⁽²⁾	—			—
Total debt	$	6,347		$	5,124

______________________________


⁽¹⁾	Senior Notes are subject to redemption at the Company’s option in whole or in part at any time at the greater of either 100% of the principal amount plus accrued and unpaid interest to the redemption date or the discounted sum of the present values of the remaining scheduled payments of principal and interest and accrued and unpaid interest to the redemption date.


⁽²⁾	The Company classifies any borrowings which have a maturity of twelve months or less at inception as short-term debt.

Debt maturities for each of the next five years and thereafter as of December 31, 2016 are as follows:



($ in millions)
2017	$	—
2018	176
2019	317
2020	—
2021	—
Thereafter	5,915
Total long-term debt principal	$	6,408

On December 8, 2016, the Company issued $550 million of 3.28% Senior Notes due 2026 and $700 million of 4.20% Senior Notes due 2046. The proceeds of this issuance were used for general corporate purposes, including in part to fund the purchase price for the acquisition of SquareTrade.

During 2016, 2015 and 2014, the Company repurchased principal debt amounts of $17 million, $11 million and $10 million, respectively. The Company recognized a loss on extinguishment of $1 million, pre-tax, in 2014, representing the excess of the repurchase price over the principal repaid, the write-off of the unamortized debt issuance costs and other costs related to the repurchase transactions.

The Subordinated Debentures may be redeemed (i) in whole at any time or in part from time to time on or after January 15, 2023 for the 5.10% Subordinated Debentures and August 15, 2023 for the 5.75% Subordinated Debentures at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the Subordinated Debentures are not redeemed in whole, at least $25 million aggregate principal amount must remain outstanding, or (ii) in whole, but not in part, prior to January 15, 2023 for the 5.10% Subordinated Debentures and August 15, 2023 for the 5.75% Subordinated Debentures, within 90 days after the occurrence of certain tax and rating agency events, at their principal amount or, if greater, a make-whole redemption price, plus accrued and unpaid interest to, but excluding, the date of redemption. The 5.75% Subordinated Debentures have this make-whole redemption price provision only when a reduction of equity credit assigned by a rating agency has occurred.

Interest on the 5.10% Subordinated Debentures is payable quarterly at the stated fixed annual rate to January 14, 2023, or any earlier redemption date, and then at an annual rate equal to the three-month LIBOR plus 3.165%. Interest on the 5.75% Subordinated Debentures is payable semi-annually at the stated fixed annual rate to August 14, 2023, or any earlier redemption date, and then quarterly at an annual rate equal to the three-month LIBOR plus 2.938%. The Company may elect to defer payment of interest on the Subordinated Debentures for one or more consecutive interest periods that do not exceed five years. During a deferral period, interest will continue to accrue on the Subordinated Debentures at the then-applicable rate and deferred interest will compound on each interest payment date. If all deferred interest on the Subordinated Debentures is paid, the Company can again defer interest payments.

The Company has outstanding $500 million of Series A 6.50% and $224 million of Series B 6.125% Fixed-to-Floating Rate Junior Subordinated Debentures (together the “Debentures”). The scheduled maturity dates for the Debentures are May 15, 2057 and May 15, 2037 for Series A and Series B, respectively, with a final maturity date of May 15, 2067. The Debentures may be redeemed (i) in whole or in part, at any time on or after May 15, 2037 or May 15, 2017 for Series A and Series B, respectively, at their principal amount plus accrued and unpaid interest to the date of redemption, or (ii) in certain circumstances, in whole or in part, prior to May 15, 2037 and May 15, 2017 for Series A and Series B, respectively, at their principal amount plus accrued and unpaid interest to the date of redemption or, if greater, a make-whole price.

Interest on the Debentures is payable semi-annually at the stated fixed annual rate to May 15, 2037 and May 15, 2017 for Series A and Series B, respectively, and then payable quarterly at an annual rate equal to the three-month LIBOR plus 2.12% and 1.935% for Series A and Series B, respectively. The Company may elect at one or more times to defer payment of interest on the Debentures for one or more consecutive interest periods that do not exceed 10 years. Interest compounds during such deferral periods at the rate in effect for each period. The interest deferral feature obligates the Company in certain circumstances to issue common stock or certain other types of securities if it cannot otherwise raise sufficient funds to make the required interest payments. The Company has reserved 75 million shares of its authorized and unissued common stock to satisfy this obligation.

The terms of the Company’s outstanding subordinated debentures prohibit the Company from declaring or paying any dividends or distributions on common or preferred stock or redeeming, purchasing, acquiring, or making liquidation payments on common stock or preferred stock if the Company has elected to defer interest payments on the subordinated debentures, subject to certain limited exceptions.

In connection with the issuance of the Debentures, the Company entered into replacement capital covenants (“RCCs”). These covenants were not intended for the benefit of the holders of the Debentures and could not be enforced by them. Rather, they were for the benefit of holders of one or more other designated series of the Company’s indebtedness (“covered debt”), currently the 7.45% Senior Notes due 2019. Pursuant to the RCCs, the Company has agreed that it will not repay, redeem, or purchase the Debentures on or before May 15, 2067 and May 15, 2047 for Series A and Series B, respectively, (or such earlier date on which the RCCs terminate by their terms) unless, subject to certain limitations, the Company has received net cash proceeds in specified amounts from the sale of common stock or certain other qualifying securities. The promises and covenants contained in the RCC will not apply if (i) S&P upgrades the Company’s issuer credit rating to A or above, (ii) the Company redeems the Debentures due to a tax event, (iii) after notice of redemption has been given by the Company and a market disruption event occurs preventing the Company from raising proceeds in accordance with the RCCs, or (iv) the Company repurchases or redeems up to 10% of the outstanding principal of the Debentures in any one-year period, provided that no more than 25% will be so repurchased, redeemed or purchased in any ten-year period.

The RCCs terminate in 2067 and 2047 for Series A and Series B, respectively. The RCCs will terminate prior to their scheduled termination date if (i) the applicable series of Debentures is no longer outstanding and the Company has fulfilled its obligations under the RCCs or they are no longer applicable, (ii) the holders of a majority of the then-outstanding principal amount of the then-effective series of covered debt consent to agree to the termination of the RCCs, (iii) the Company does not have any series of outstanding debt that is eligible to be treated as covered debt under the RCCs, (iv) the applicable series of Debentures is accelerated as a result of an event of default, (v) certain rating agency or change in control events occur, (vi) S&P, or any successor thereto, no longer assigns a solicited rating on senior debt issued or guaranteed by the Company, or (vii) the termination of the RCCs would have no effect on the equity credit provided by S&P with respect to the Debentures. An event of default, as defined by the supplemental indenture, includes default in the payment of interest or principal and bankruptcy proceedings.

To manage short-term liquidity, the Company maintains a commercial paper program and a credit facility as a potential source of funds. These include a $1.00 billion unsecured revolving credit facility and a commercial paper program with a borrowing limit of $1.00 billion. In April 2016, the Company extended the maturity date of the facility to April 2021. This facility contains an increase provision that would allow up to an additional $500 million of borrowing. This facility has a financial covenant requiring the Company not to exceed a 37.5% debt to capitalization ratio as defined in the agreement. Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of the Company’s senior unsecured, unguaranteed long-term debt. The total amount outstanding at any point in time under the combination of the commercial paper program and the credit facility cannot exceed the amount that can be borrowed under the credit facility. No amounts were outstanding under the credit facility as of December 31, 2016 or 2015. The Company had no commercial paper outstanding as of December 31, 2016 or 2015.

The Company paid $287 million, $289 million and $332 million of interest on debt in 2016, 2015 and 2014, respectively.

The Company had $132 million and $107 million of investment-related debt that is reported in other liabilities and accrued expenses as of December 31, 2016 and 2015, respectively. This includes a commitment to fund a limited partnership of $45 million and $89 million and debt related to other investments of $87 million and $18 million as of December 31, 2016 and 2015, respectively. The Company has an outstanding line of credit to fund the limited partnership.

During 2015, the Company filed a universal shelf registration statement with the Securities and Exchange Commission (“SEC”) that expires in 2018. The registration statement covers an unspecified amount of securities and can be used to issue debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, stock purchase units and securities of trust subsidiaries.

Common stock

The Company had 900 million shares of issued common stock of which 366 million shares were outstanding and 534 million shares were held in treasury as of December 31, 2016. In 2016, the Company reacquired 20 million shares at an average cost of $66.45 and reissued 5 million net shares under equity incentive plans.

Preferred stock

The following table summarizes the Company’s outstanding preferred stock as of December 31, 2016. All represent noncumulative perpetual preferred stock with a $1.00 par value per share and a liquidation preference of $25,000 per share.



($ in millions, except per share data)		Aggregate liquidation preference				Dividend Per Share						Aggregate Dividend Payment
	Shares	Aggregate liquidation preference		Dividend rate		2016		2015		2014		2016		2015		2014
Series A	11,500	$	287.5	5.625	%	$	1.41	$	1.41	$	1.41	$	16	$	16	$	16
Series C	15,400	385.0		6.750	%	1.69		1.69		1.69		26		26		26
Series D	5,400	135.0		6.625	%	1.66		1.66		1.79		9		9		10
Series E	29,900	747.5		6.625	%	1.66		1.66		1.44		49		49		43
Series F	10,000	250.0		6.250	%	1.56		1.56		0.92		16		16		9
Total	72,200	$	1,805									$	116	$	116	$	104

In March 2014, the Company issued 29,900 shares of 6.625% Noncumulative Perpetual Preferred Stock, Series E, for gross proceeds of $747.5 million. In June 2014, the Company issued 10,000 shares of 6.25% Noncumulative Perpetual Preferred Stock, Series F, for gross proceeds of $250 million. The proceeds of both issuances were used for general corporate purposes.

The preferred stock ranks senior to the Company’s common stock with respect to the payment of dividends and liquidation rights. The Company will pay dividends on the preferred stock on a noncumulative basis only when, as and if declared by the Company’s board of directors (or a duly authorized committee of the board) and to the extent that the Company has legally available funds to pay dividends. If dividends are declared on the preferred stock, they will be payable quarterly in arrears at an annual fixed rate. Dividends on the preferred stock are not cumulative. Accordingly, in the event dividends are not declared on the preferred stock for payment on any dividend payment date, then those dividends will cease to be payable. If the Company has not declared a dividend before the dividend payment date for any dividend period, the Company has no obligation to pay dividends for that dividend period, whether or not dividends are declared for any future dividend period. No dividends may be paid or declared on the Company’s common stock and no shares of the Company’s common stock may be repurchased unless the full dividends for the latest completed dividend period on the preferred stock have been declared and paid or provided for.

The Company is prohibited from declaring or paying dividends on preferred stock in excess of the amount of net proceeds from an issuance of common stock taking place within 90 days before a dividend declaration date if, on that dividend declaration date, either: (1) the risk-based capital ratios of the largest U.S. property-casualty insurance subsidiaries that collectively account for 80% or more of the net written premiums of U.S. property-casualty insurance business on a weighted average basis were less than 175% of their company action level risk-based capital as of the end of the most recent year; or (2) consolidated net income for the four-quarter period ending on the preliminary quarter end test date (the quarter that is two quarters prior to the most recently completed quarter) is zero or negative and consolidated shareholders’ equity (excluding accumulated other comprehensive income, and subject to certain other adjustments relating to changes in U.S. GAAP) as of each of the preliminary quarter test date and the most recently completed quarter has declined by 20% or more from its level as measured at the end of the benchmark quarter (the date that is ten quarters prior to the most recently completed quarter). If the Company fails to satisfy either of these tests on any dividend declaration date, the restrictions on dividends will continue until the Company is able again to satisfy the test on a dividend declaration date. In addition, in the case of a restriction arising under (2) above, the restrictions on dividends will continue until consolidated shareholders’ equity (excluding accumulated other comprehensive income, and subject to certain other adjustments relating to changes in U.S. GAAP) has increased, or has declined by less than 20%, in either case as compared to its level at the end of the benchmark quarter for each dividend payment date as to which dividend restrictions were imposed.

The preferred stock does not have voting rights except with respect to certain changes in the terms of the preferred stock, in the case of certain dividend nonpayments, certain other fundamental corporate events, mergers or consolidations and as otherwise provided by law. If and when dividends have not been declared and paid in full for at least six quarterly dividend periods or their equivalent (whether or not consecutive), the authorized number of directors then constituting our board of directors will be increased by two. The holders of the preferred stock, together with the holders of all other affected classes and series of voting parity stock, voting as a single class, will be entitled to elect the two additional members of the board of directors of the Company, subject to certain conditions. The board of directors shall at no time have more than two preferred stock directors.

The preferred stock is perpetual and has no maturity date. The preferred stock is redeemable at the Company’s option in whole or in part, on or after June 15, 2018 for Series A, October 15, 2018 for Series C, April 15, 2019 for Series D and E, and October 15, 2019 for Series F, at a redemption price of $25,000 per share of preferred stock, plus declared and unpaid dividends. Prior to June 15, 2018 for Series A, October 15, 2018 for Series C, April 15, 2019 for Series D and E, and October 15, 2019 for Series F, the preferred stock is redeemable at the Company’s option, in whole but not in part, within 90 days of the occurrence of certain rating agency events at a redemption price equal to $25,000 per share or, if greater, a make-whole redemption price, plus declared and unpaid dividends.

Company Restructuring

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Company Restructuring

The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include employee termination and relocation benefits, and post-exit rent expenses in connection with these programs, and non-cash charges resulting from pension benefit payments made to agents and certain legal expenses incurred in connection with the 1999 reorganization of Allstate’s multiple agency programs to a single exclusive agency program. The expenses related to these activities are included in the Consolidated Statements of Operations as restructuring and related charges, and totaled $30 million, $39 million and $18 million in 2016, 2015 and 2014, respectively. Restructuring expenses in 2016 related to programs and actions designed to transform business operations within the organization.

The following table presents changes in the restructuring liability in 2016.



($ in millions)	Employee costs			Exit costs			Total liability
Balance as of December 31, 2015	$	1		$	1		$	2
Expense incurred	8			6			14
Payments applied against liability	(9		)	(5		)	(14		)
Balance as of December 31, 2016	$	—		$	2		$	2

The payments applied against the liability for employee costs primarily reflect severance costs, and the payments for exit costs generally consist of post-exit rent expenses and contract termination penalties. As of December 31, 2016, the cumulative amount incurred to date for active programs totaled $78 million for employee costs and $66 million for exit costs.

Commitments, Guarantees and Contingent Liabilities

12 Months Ended

Dec. 31, 2016

Guarantees and Contingent Liabilities

Commitments, Guarantees and Contingent Liabilities

Leases

The Company leases certain office facilities, computer and office equipment, aircraft and automobiles. Total rent expense for all leases was $147 million, $179 million and $187 million in 2016, 2015 and 2014, respectively.

Minimum rental commitments under operating leases with an initial or remaining term of more than one year as of December 31, 2016 are as follows:



($ in millions)
2017	$	122
2018	103
2019	88
2020	71
2021	53
Thereafter	169
Total	$	606

Shared markets and state facility assessments

The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities and/or assessments from these facilities.

Florida Citizens

Castle Key is subject to assessments from Citizens Property Insurance Corporation in the state of Florida (“FL Citizens”), which was initially created by the state of Florida to provide insurance to property owners unable to obtain coverage in the private insurance market. FL Citizens, at the discretion and direction of its Board of Governors (“FL Citizens Board”), can levy a regular assessment on assessable insurers and assessable insureds for a deficit in any calendar year up to a maximum of the greater of: 2% of the projected deficit or 2% of the aggregate statewide direct written premium for the prior calendar year. The base of assessable insurers includes all property and casualty premiums in the state, except workers’ compensation, medical malpractice, accident and health insurance and policies written under the NFIP. An insurer may recoup a regular assessment through a surcharge to policyholders. In order to recoup this assessment, an insurer must file for a policy surcharge with the Florida Office of Insurance Regulation (“FL OIR”) at least fifteen days prior to imposing the surcharge on policies. If a deficit remains after the regular assessment, FL Citizens can also levy emergency assessments in the current and subsequent years. Companies are required to collect the emergency assessments directly from residential property policyholders and remit to FL Citizens as collected. Pursuant to an Order issued by the FL OIR, the emergency assessment is zero for all policies issued or renewed on or after July 1, 2015.

Louisiana Citizens

The Company is also subject to assessments from Louisiana Citizens Property Insurance Corporation (“LA Citizens”). LA Citizens can levy a regular assessment on participating companies for a deficit in any calendar year up to a maximum of the greater of 10% of the calendar year deficit or 10% of Louisiana direct property premiums industry-wide for the prior calendar year. If the plan year deficit exceeds the amount that can be recovered through Regular Assessments, LA Citizens may fund the remaining deficit by issuing revenue assessment bonds in the capital markets. LA Citizens then declares Emergency Assessments each year to provide debt service on the bonds until they are retired. Companies writing assessable lines must surcharge their policyholders Emergency Assessments in the percentage established annually by LA Citizens and must remit amounts collected to the bond trustee on a quarterly basis.

Florida Hurricane Catastrophe Fund

Castle Key participates in the mandatory coverage provided by the FHCF and therefore has access to reimbursements on certain qualifying Florida hurricane losses from the FHCF (see Note 10), has exposure to assessments and pays annual premiums to the FHCF for this reimbursement protection. The FHCF has the authority to issue bonds to pay its obligations to insurers participating in the mandatory coverage in excess of its capital balances. Payment of these bonds is funded by emergency assessments on all property and casualty premiums in the state, except workers’ compensation, medical malpractice, accident and health insurance and policies written under the NFIP. The FHCF emergency assessments are limited to 6% of premiums per year beginning the first year in which reimbursements require bonding, and up to a total of 10% of premiums per year for assessments in the second and subsequent years, if required to fund additional bonding. The FHCF issued $625 million in bonds in 2008, and the FL OIR ordered an emergency assessment of 1% of premiums collected for all policies renewed January 1, 2007 through December 31, 2010. The FHCF issued $676 million in bonds in 2010 and the FL OIR ordered an emergency assessment of 1.3% of premiums collected for all policies written or renewed January 1, 2011 through December 31, 2014. Pursuant to an Order issued by the FL OIR, the emergency assessment is zero for all policies issued or renewed on or after January 1, 2015. The FHCF issued $2 billion in pre-event bonds in 2013 to build their capacity to reimburse member companies’ claims. The FHCF plans to fund these pre-event bonds through current FHCF cash flows.

Facilities such as FL Citizens, LA Citizens and the FHCF are generally designed so that the ultimate cost is borne by policyholders; however, the exposure to assessments from these facilities and the availability of recoupments or premium rate increases may not offset each other in the Company’s financial statements. Moreover, even if they do offset each other, they may not offset each other in financial statements for the same fiscal period due to the ultimate timing of the assessments and recoupments or premium rate increases, as well as the possibility of policies not being renewed in subsequent years.

California Earthquake Authority

Exposure to certain potential losses from earthquakes in California is limited by the Company’s participation in the California Earthquake Authority (“CEA”), which provides insurance for California earthquake losses. The CEA is a privately-financed, publicly-managed state agency created to provide insurance coverage for earthquake damage. Insurers selling homeowners insurance in California are required to offer earthquake insurance to their customers either through their company or by participation in the CEA. The Company’s homeowners policies continue to include coverages for losses caused by explosions, theft, glass breakage and fires following an earthquake, which are not underwritten by the CEA.

As of September 30, 2016, the CEA’s capital balance was approximately $5.32 billion. Should losses arising from an earthquake cause a deficit in the CEA, additional $680 million would be obtained from the proceeds of revenue bonds the CEA may issue, an existing $4.78 billion reinsurance layer, and finally, if needed, assessments on participating insurance companies. Participating insurers are required to pay an assessment, currently estimated not to exceed $1.66 billion, if the capital of the CEA falls below $350 million. Participating insurers are required to pay a second additional assessment, currently estimated not to exceed $128 million, if aggregate CEA earthquake losses exceed $12.57 billion and the capital of the CEA falls below $350 million. Within the limits previously described, the assessment could be intended to restore the CEA’s capital to a level of $350 million. There is no provision that allows insurers to recover assessments through a premium surcharge or other mechanism. The CEA’s projected aggregate claim paying capacity is $12.57 billion as of September 30, 2016 and if an event were to result in claims greater than its capacity, affected policyholders may be paid a prorated portion of their covered losses, paid on an installment basis, or no payments may be made if the claim paying capacity of the CEA is insufficient.

All future assessments on participating CEA insurers are based on their CEA insurance market share as of December 31 of the preceding year. As of December 31, 2015, the Company’s market share of the CEA was 12.1%. The Company does not expect its CEA market share to materially change. At this level, the Company’s maximum possible CEA assessment would be $217 million during 2017. These amounts are re-evaluated by the board of directors of the CEA on an annual basis. Accordingly, assessments from the CEA for a particular quarter or annual period may be material to the results of operations and cash flows, but not the financial position of the Company. Management believes the Company’s exposure to earthquake losses in California has been significantly reduced as a result of its participation in the CEA.

Texas Windstorm Insurance Association

The Company participates as a member of the Texas Windstorm Insurance Association (“TWIA”) which provides wind and hail coverage to coastal risks unable to procure coverage in the voluntary market. Wind and hail coverage is written on a TWIA-issued policy. TWIA follows a funding structure first utilizing currently available funds set aside from periods (including current and prior years). Under the current law, to the extent losses exceed premiums received from policyholders, TWIA utilizes a combination of reinsurance and TWIA issued securities to fund its payments of losses. Reinsurance is procured annually in an amount determined by the TWIA board. Once those currently available funds and available reinsurance are utilized, TWIA could issue up to $1 billion of securities, which will be repaid by billing policyholders and assessing participating insurers. The Company’s current participation ratio is approximately 13% based upon its proportion of the premiums written. The TWIA board has not indicated the likelihood of any possible future assessments to insurers at this time. However, assessments from TWIA for a particular quarter or annual period may be material to the results of operations and cash flows, but not the financial position of the Company.

New Jersey Property-Liability Insurance Guaranty Association

The PLIGA, as the statutory administrator of the UCJF, provides compensation to qualified claimants for personal injury protection, bodily injury, or death caused by private passenger automobiles operated by uninsured or “hit and run” drivers. The UCJF also provides private passenger stranger pedestrian personal injury protection benefits when no other coverage is available. The fund provides reimbursement to insurers for the medical benefits portion of personal injury protection coverage paid in excess of $75,000 with no limits for policies issued or renewed prior to January 1, 1991 and in excess of $75,000 and capped at $250,000 for policies issued or renewed from January 1, 1991 to December 31, 2004. PLIGA annually assesses all admitted property and casualty insurers writing motor vehicle liability insurance in New Jersey for direct PLIGA expenses and UCJF reimbursements and expenses. Assessments paid to PLIGA totaled $6.7 million in 2016.

North Carolina Reinsurance Facility

The North Carolina Reinsurance Facility (“NCRF”) provides automobile liability insurance to drivers that insurers are not otherwise willing to insure. All insurers licensed to write automobile insurance in North Carolina are members of the NCRF. Premiums, losses and expenses are ceded to the NCRF. North Carolina law allows the NCRF to recoup operating losses through a surcharge to policyholders. As of September 30, 2016, the NCRF reported a deficit of $261.1 million in members’ equity. The NCRF implemented a loss recoupment surcharge on all private passenger policies becoming effective October 1, 2016 through March 31, 2017. The loss recoupment surcharge will be adjusted at March 31, 2017 and discontinued once losses are recovered. The NCRF results are shared by the member companies in proportion to their respective North Carolina automobile liability writings. As a result, the NCRF also has the ability to assess members Companies for recoupment of losses calculated on a pro-rata basis across member companies based on participation ratios, determined annually.

North Carolina Joint Underwriters Association

The North Carolina Joint Underwriters Association (“NCJUA”) was created to provide property insurance for properties (other than the state’s beach and coastal areas) that insurers are not otherwise willing to insure. All insurers licensed to write property insurance in North Carolina are members of the NCJUA. Premiums, losses and expenses of the NCJUA are shared by the member companies in proportion to their respective North Carolina property insurance writings. Member companies participate in plan deficits or surpluses based on their participation ratios, which are determined annually. The Company had a $2.5 million receivable from the NCJUA at December 31, 2016, representing our participation in the NCJUA’s surplus of $28.1 million for all open years.

North Carolina Insurance Underwriting Association

The North Carolina Insurance Underwriting Association (“NCIUA”) provides windstorm and hail coverage as well as homeowners policies for properties located in the state’s beach and coastal areas that insurers are not otherwise willing to insure. All insurers licensed to write residential and commercial property insurance in North Carolina are members of the NCIUA. Members are assessed in proportion to their North Carolina residential and commercial property insurance writings, which is determined annually and varies by coverage, for plan deficits. As of September 30, 2016, the NCIUA had a surplus of $1.3 billion. No member company shall be entitled to the distribution of any portion of the Association’s surplus. Legislation in 2009 capped insurers’ assessments for losses incurred in any calendar year at $1 billion. Subsequent to an industry assessment of $1 billion, if the plan continues to require funding, it may authorize insurers to assess a 10% surcharge on each property insurance policy statewide located in the state’s beach and coastal areas to be remitted to the plan.

Guaranty funds

Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, for certain obligations of insolvent insurance companies to policyholders and claimants. Amounts assessed to each company are typically related to its proportion of business written in each state. The Company’s policy is to accrue assessments when the entity for which the insolvency relates has met its state of domicile’s statutory definition of insolvency, the amount of the loss is reasonably estimable and the related premium upon which the assessment is based is written. In most states, the definition is met with a declaration of financial insolvency by a court of competent jurisdiction. In certain states there must also be a final order of liquidation. As of December 31, 2016 and 2015, the liability balance included in other liabilities and accrued expenses was $4 million and $13 million, respectively. The related premium tax offsets included in other assets were $9 million and $14 million as of December 31, 2016 and 2015, respectively.

Guarantees

The Company provides residual value guarantees on Company leased automobiles. If all outstanding leases were terminated effective December 31, 2016, the Company’s maximum obligation pursuant to these guarantees, assuming the automobiles have no residual value, would be $46 million as of December 31, 2016. The remaining term of each residual value guarantee is equal to the term of the underlying lease that ranges from less than one year to four years. Historically, the Company has not made any material payments pursuant to these guarantees.

Related to the sale of LBL on April 1, 2014, ALIC agreed to indemnify Resolution Life Holdings, Inc. in connection with certain representations, warranties and covenants of ALIC, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding ALIC’s maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company.

Related to the disposal through reinsurance of substantially all of Allstate Financial’s variable annuity business to Prudential in 2006, the Company and its consolidated subsidiaries, ALIC and ALNY, have agreed to indemnify Prudential for certain pre-closing contingent liabilities (including extra-contractual liabilities of ALIC and ALNY and liabilities specifically excluded from the transaction) that ALIC and ALNY have agreed to retain. In addition, the Company, ALIC and ALNY will each indemnify Prudential for certain post-closing liabilities that may arise from the acts of ALIC, ALNY and their agents, including certain liabilities arising from ALIC’s and ALNY’s provision of transition services. The reinsurance agreements contain no limitations or indemnifications with regard to insurance risk transfer and transferred all of the future risks and responsibilities for performance on the underlying variable annuity contracts to Prudential, including those related to benefit guarantees. Management does not believe this agreement will have a material effect on results of operations, cash flows or financial position of the Company.

In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

The aggregate liability balance related to all guarantees was not material as of December 31, 2016.

Regulation and Compliance

The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, prescribe rules or guidelines on how affiliates compete in the marketplace, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agent and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies and other organizations, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the U.S. Equal Employment Opportunity Commission, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain.

Legal and regulatory proceedings and inquiries

The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business.

Background

These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; changes in assigned judges; differences or developments in applicable laws and judicial interpretations; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; adjustments with respect to anticipated trial schedules and other proceedings; developments in similar actions against other companies; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the current challenging legal environment faced by corporations and insurance companies.

The outcome of these matters may be affected by decisions, verdicts, and settlements, and the timing of such decisions, verdicts, and settlements, in other individual and class action lawsuits that involve the Company, other insurers, or other entities and by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities. The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted.

In the lawsuits, plaintiffs seek a variety of remedies which may include equitable relief in the form of injunctive and other remedies and monetary relief in the form of contractual and extra-contractual damages. In some cases, the monetary damages sought may include punitive or treble damages. Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings. When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court. In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company.

In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding.

Accrual and disclosure policy

The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred.

The Company continues to monitor its lawsuits, regulatory inquiries, and other legal proceedings for further developments that would make the loss contingency both probable and estimable, and accordingly accruable, or that could affect the amount of accruals that have been previously established. There may continue to be exposure to loss in excess of any amount accrued. Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual.

When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued, if any, for the matters disclosed, that estimate is aggregated and disclosed. Disclosure is not required when an estimate of the reasonably possible loss or range of loss cannot be made.

For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any. In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments.

These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others. When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below. There may be other disclosed matters for which a loss is probable or reasonably possible but such an estimate is not possible. Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate.

The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $875 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies.

Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company.

Claims related proceedings

The Company is litigating two class action cases in California in which the plaintiffs allege off-the-clock wage and hour claims. Plaintiffs in both cases seek recovery of unpaid compensation, liquidated damages, penalties, and attorneys’ fees and costs.

The first case is Christopher Williams, et al. v. Allstate Insurance Company. The Williams case is pending in Los Angeles Superior Court and was filed in December 2007. The case involves two classes. The first class includes auto field physical damage adjusters employed in the state of California from January 1, 2005 to the date of final judgment, to the extent the Company failed to pay for off-the-clock work to those adjusters who performed certain duties prior to their first assignments. The other class includes all non-exempt employees in California from December 19, 2006 until June 2011 who received pay statements from Allstate which allegedly did not comply with California law. On April 13, 2016, the court granted the Company’s motion to decertify both classes; both classes are thus dissolved unless and until the appellate court orders the classes recertified. On May 17, 2016, plaintiffs filed their notice of appeal. Plaintiff’s opening brief was filed on November 22, 2016. Allstate’s response is due April 24, 2017.

The second case is Jack Jimenez, et al. v. Allstate Insurance Company. Jimenez was filed in the U.S. District Court for the Central District of California in September 2010. The plaintiffs allege that they worked off-the-clock; they also allege other California Labor Code violations resulting from purported unpaid overtime. In April 2012, the court certified a class that includes all adjusters in the state of California, except auto field adjusters, from September 29, 2006 to final judgment. Allstate appealed the court’s decision to certify the class, first to the Ninth Circuit Court of Appeals and then to the U.S. Supreme Court. On June 15, 2015, the U.S. Supreme Court denied Allstate’s petition for a writ of certiorari. The case was scheduled for trial on September 27, 2016. On May 4, 2016, the court vacated that trial date in part because the court had not approved a trial plan. No trial date has been scheduled because the parties continue to wait for the court’s approval of a trial plan.

In addition to the California class actions, the case of Maria Victoria Perez and Kaela Brown, et al. v. Allstate Insurance Company was filed in the U.S. District Court for the Eastern District of New York. Plaintiffs allege that no-fault claim adjusters have been improperly classified as exempt employees under New York Labor Law and the Fair Labor Standards Act. The case was filed in April 2011, and the plaintiffs are seeking unpaid wages, liquidated damages, injunctive relief, compensatory and punitive damages, and attorneys’ fees. On September 16, 2014, the court certified a class of no-fault adjusters under New York Labor Law and refused to decertify a Fair Labor Standards Act class of no-fault adjusters. Notice to the class was issued in December 2015 and no opt outs were received. During the discovery phase of the case, it was determined that 50 Encompass adjusters had been erroneously omitted from the New York Labor Law and Fair Labor Standards Act classes. On April 8, 2016, notice was sent to the omitted Encompass adjusters. Eleven Encompass adjusters opted in. As a result, there are now 105 members of the Fair Labor Standards Act class and 137 members of the New York Labor Law class. The parties are currently engaged in discovery regarding the Encompass adjusters.

In the Company’s judgment, a loss is not probable in these three cases.

The Florida personal injury protection statute permits insurers to pay personal injury protection benefits for reasonable medical expenses based on certain benefit reimbursement limitations which are authorized by the personal injury protection statute (generally referred to as “fee schedules”) resulting from automobile accidents. The Company has been involved in litigation challenging whether the Company’s personal injury protection policies include sufficient language providing notice of the Company’s election to apply the fee schedules.

On January 26, 2017, the Florida Supreme Court issued its decision in Allstate Insurance Company v. Orthopedic Specialists, et al., holding that Allstate’s language was clear and unambiguous and provided adequate notice of its intent to use the fee schedules. This was a 4-3 decision (two separate opinions, the majority for Allstate, and a dissent), reversing the decision of the District Court of Appeal for the Fourth District. The District Court of Appeal for the Fourth District had previously issued a divided decision (three separate opinions, two against Allstate and one dissenting opinion deeming Allstate’s language sufficient), holding that Allstate’s language was not sufficient. On February 7, 2017, Orthopedic Specialists filed a motion for rehearing. Allstate’s response is due February 22, 2017. On February 8, 2017, the amicus curiae, Florida Medical Association, filed its own motion for rehearing. Allstate’s response to that motion is due February 23, 2017. The Florida Supreme Court’s decision is not final until the motions for rehearing are resolved.

In light of this ruling (assuming there is no change as a result of the motions for rehearing), the fee schedule issue will be resolved favorably to Allstate in other pending cases. There are three cases with petitions for leave to appeal to the Florida Supreme Court pending (Stand-Up MRI of Tallahassee, et al. v. Allstate Fire & Casualty Insurance Company, Markley Chiropractic & Acupuncture LLC, et al. v. Allstate Indemnity Company, and Florida Wellness & Rehabilitation Center of Hialeah, et al. v. Allstate Fire & Casualty Insurance Company). In those cases, three District Courts of Appeal had previously ruled in favor of Allstate. Those petitions for leave to appeal had been stayed awaiting the outcome of the Orthopedic Specialists case, and will likely be dismissed once Orthopedic Specialists is final.

The Company is also litigating one class action on this issue, Randy Rosenberg, et al. v. Allstate Fire & Casualty Insurance Company, Allstate Insurance Company, and Allstate Property & Casualty Insurance Company, in the U.S. District Court for the Northern District of Illinois. This case has been stayed by the Illinois federal court pending a decision on this issue by the Florida Supreme Court, and will likely be dismissed once Orthopedic Specialists is final.

This fee schedule issue has also been the subject of thousands of individual lawsuits filed against Allstate in Florida. The decision by the Florida Supreme Court in Orthopedic Specialists, once final, will establish Florida law on the sufficiency of Allstate’s fee schedule policy language which will be binding on all Florida courts, as well as the Illinois federal class action. An outcome in favor of Allstate’s position that the fee schedule policy language was sufficient will result in the resolution of all related claims that are currently in litigation along with those claims that are not currently in litigation. Allstate may be able to seek restitution from some plaintiffs for attorneys’ fees and costs. However, if Orthopedic Specialists were to be changed adverse to the Company as a result of the motions for rehearing, there will be significant costs to Allstate in the form of additional benefits due to medical providers along with penalties, interest, postage, and attorneys’ fees.

In the Company’s judgment, a loss is not probable in any of these cases.

Other proceedings

The Company is defending certain matters in the U.S. District Court for the Eastern District of Pennsylvania relating to the Company’s agency program reorganization announced in 1999. The principal focus in these matters has related to a release of claims signed by the vast majority of the former agents whose employment contracts were terminated in the reorganization program. The court recently entered a schedule for determining the merits of certain claims asserted in the matters described below, with the release issue to be addressed in unspecified future proceedings.

Romero I: In 2001, approximately 32 former employee agents, on behalf of a putative class of approximately 6,300 former employee agents, filed a putative class action alleging claims for age discrimination under the Age Discrimination in Employment Act (“ADEA”), interference with benefits under ERISA, breach of contract, and breach of fiduciary duty. Plaintiffs also assert a claim for a declaratory judgment that the release of claims constitutes unlawful retaliation and should be set aside. Plaintiffs seek broad but unspecified “make whole relief,” including back pay, compensatory and punitive damages, liquidated damages, lost investment capital, attorneys’ fees and costs, and equitable relief, including reinstatement to employee agent status with all attendant benefits.

Romero II: A putative nationwide class action was also filed in 2001 by former employee agents alleging various violations of ERISA (“Romero II”). This action has been consolidated with Romero I. The Romero II plaintiffs, most of whom are also plaintiffs in Romero I, are challenging certain amendments to the Agents Pension Plan and seek to have service as exclusive agent independent contractors count toward eligibility for benefits under the Agents Pension Plan. Plaintiffs seek broad but unspecified “make whole” or other equitable relief, including loss of benefits as a result of their conversion to exclusive agent independent contractor status or retirement from the Company between November 1, 1999 and December 31, 2000. They also seek repeal of the challenged amendments to the Agents Pension Plan with all attendant benefits revised and recalculated for thousands of former employee agents, and attorneys’ fees and costs. The court granted the Company’s initial motion to dismiss the complaint. The Third Circuit Court of Appeals reversed that dismissal and remanded for further proceedings.

Romero I and II consolidated proceedings: In 2004, the court ruled that the release was voidable and certified classes of agents, including a mandatory class of agents who had signed the release, for purposes of effectuating the court’s declaratory judgment that the release was voidable. In 2007, the court vacated its ruling and granted the Company’s motion for summary judgment on all claims. Plaintiffs appealed and in July 2009, the U.S. Court of Appeals for the Third Circuit vacated the trial court’s entry of summary judgment in the Company’s favor, remanded the case to the trial court for additional discovery, and instructed the trial court to address the validity of the release after additional discovery. Following the completion of discovery limited to the validity of the release, the parties filed cross motions for summary judgment with respect to the validity of the release. On February 28, 2014, the trial court denied plaintiffs’ and the Company’s motions for summary judgment, concluding that the question of whether the releases were knowingly and voluntarily signed under a totality of circumstances test raised disputed issues of fact to be resolved at trial. Among other things, the court also held that the release, if valid, would bar all claims in Romero I and II. On May 23, 2014, plaintiffs moved to certify a class as to certain issues relating to the validity of the release. The court denied plaintiffs’ class certification motion on October 6, 2014, stating, among other things, that individual factors and circumstances must be considered to determine whether each release signer entered into the release knowingly and voluntarily. The court entered an order on December 11, 2014, (a) stating that the court’s October 6, 2014 denial of class certification as to release-related issues did not resolve whether issues relating to the merits of plaintiffs’ claims may be subject to class certification at a later time, and (b) holding that the court’s October 6, 2014 order restarted the running of the statute of limitation for any former employee agent who wished to challenge the validity of the release. In an order entered January 7, 2015, the court denied reconsideration of its December 11, 2014 order and clarified that all statutes of limitations to challenge the release would resume running on March 2, 2015. Since the court’s January 7, 2015 order, a total of 459 additional individual plaintiffs have filed separate lawsuits similar to Romero I or sought to intervene in the Romero I action. Trial proceedings commenced to determine the question of whether the releases of the original named plaintiffs in Romero I and II were knowingly and voluntarily signed. Additionally, plaintiffs asserted two equitable defenses to the release which were to be determined by the court and not the jury. As to the first trial proceeding involving ten plaintiffs, the jury reached verdicts on June 17, 2015 finding that two plaintiffs signed their releases knowingly and voluntarily and eight plaintiffs did not sign their releases knowingly and voluntarily. On January 28, 2016, the court entered its opinion and judgment finding in Allstate’s favor as to all ten plaintiffs on the two equitable defenses to the release. The trial result is not yet final and may be subject to further proceedings. The remaining two trials for the original Romero I and II plaintiffs were scheduled to commence in the fourth quarter of 2015; however, the order setting these trials was subsequently vacated.

On February 1, 2016, these cases were reassigned to a new judge who initially entered orders addressing pending motions for reconsideration of the dismissal of plaintiffs’ state law claims, but then vacated those orders. On April 12, 2016, these cases were again reassigned to a new judge. On May 2, 2016, the new judge entered an order vacating the setting of additional release trials, consolidating all of the original and intervening plaintiffs’ claims, and granting leave to file a Consolidated Amended Complaint by May 20, 2016. The court entered a second order on May 2, 2016, scheduling deadlines for completion of discovery and filing of summary judgment motions on the merits of plaintiffs’ ERISA and ADEA claims, and setting a non-jury ERISA trial to occur in December 2016. The court’s order also set deadlines for completion of discovery and summary judgment motions with regard to the remaining claims and defenses by the first quarter of 2017, with a jury trial on those claims and defenses to occur in May 2017. The court subsequently clarified the scope of the scheduled trials, ruling that (a) the December 2016 non-jury trial shall only resolve liability on plaintiffs’ claims challenging certain plan amendments under ERISA (“Phase I”); (b) the second trial currently scheduled for May 2017 shall resolve alleged interference with employee benefits under ERISA and disparate impact under the ADEA, with the court deciding the ERISA claim (“Phase II”); and (c) plaintiffs’ ADEA disparate treatment claims will not be resolved in the second trial but will be resolved in a manner to be determined at a later date. On May 4, 2016, the court entered an order denying Allstate’s post-trial motion for judgment as a matter of law with respect to the jury’s June 17, 2015 verdicts in favor of eight plaintiffs on the issue whether they knowingly and voluntarily signed their releases.

On May 20, 2016, a Consolidated Amended Complaint was filed on behalf of 499 plaintiffs, most of whom had previously filed separate lawsuits or intervened in Romero I. Allstate filed a partial motion to dismiss the Consolidated Amended Complaint, which the court granted in part and denied in part on July 6, 2016. Among other things, the court denied without prejudice Allstate’s motion to dismiss the state law claims, granted dismissal of plaintiffs’ retaliation claims under the ADEA and ERISA.

Phase I discovery closed and the Company filed a motion for summary judgment as to all Phase I claims. Plaintiffs did not move for summary judgment. On November 22, 2016, the court granted in part, and denied in part, Allstate’s Phase I summary judgment motion. The court determined that there were material issues of disputed fact requiring a trial on plaintiffs’ claim challenging certain Plan amendments. The court granted the motion with respect to one plaintiff whose claim the court determined was barred by the statute of limitations. Further, the court granted the motion with respect to two other claims: 1) a claim that a 1993 Plan amendment resulted in an unlawful cutback of benefits; and 2) a claim for breach of fiduciary duty. The parties thereafter proceeded to a bench trial on December 5-6, 2016. Briefing on proposed findings of fact and conclusions of law has been completed.

On September 2, 2016, in two cases asserting similar claims to those asserted in Romero I that had been filed on May 15, 2015, the U.S. District Court for the Southern District of Texas entered judgment in Allstate’s favor on statute of limitations and other grounds. Plaintiffs did not appeal the judgments.

Based on the trial court’s February 28, 2014 order in Romero I and II, if the validity of the release is decided in favor of the Company for any plaintiff, that would preclude any damages or other relief being awarded to that plaintiff. The final resolution of these matters is subject to various uncertainties and complexities including how trials, post trial motions, possible appeals with respect to the validity of the release, and any rulings on the merits will be resolved.

In the Company’s judgment, a loss is not probable.

Asbestos and environmental

Allstate’s reserves for asbestos claims were $912 million and $960 million, net of reinsurance recoverables of $444 million and $458 million, as of December 31, 2016 and 2015, respectively. Reserves for environmental claims were $179 million and $179 million, net of reinsurance recoverables of $40 million and $43 million, as of December 31, 2016 and 2015, respectively. Approximately 57% of the total net asbestos and environmental reserves as of both December 31, 2016 and 2015 were for incurred but not reported estimated losses.

Management believes its net loss reserves for asbestos, environmental and other discontinued lines exposures are appropriately established based on available facts, technology, laws and regulations. However, establishing net loss reserves for asbestos, environmental and other discontinued lines claims is subject to uncertainties that are much greater than those presented by other types of claims. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimate. Among the complications are lack of historical data, long reporting delays, uncertainty as to the number and identity of insureds with potential exposure and unresolved legal issues regarding policy coverage; unresolved legal issues regarding the determination, availability and timing of exhaustion of policy limits; plaintiffs’ evolving and expanding theories of liability; availability and collectability of recoveries from reinsurance; retrospectively determined premiums and other contractual agreements; estimates of the extent and timing of any contractual liability; the impact of bankruptcy protection sought by various asbestos producers and other asbestos defendants; and other uncertainties. There are also complex legal issues concerning the interpretation of various insurance policy provisions and whether those losses are covered, or were ever intended to be covered, and could be recoverable through retrospectively determined premium, reinsurance or other contractual agreements. Courts have reached different and sometimes inconsistent conclusions as to when losses are deemed to have occurred and which policies provide coverage; what types of losses are covered; whether there is an insurer obligation to defend; how policy limits are determined; how policy exclusions and conditions are applied and interpreted; and whether clean-up costs represent insured property damage. Further, insurers and claims administrators acting on behalf of insurers are increasingly pursuing evolving and expanding theories of reinsurance coverage for asbestos and environmental losses. Adjudication of reinsurance coverage is predominately decided in confidential arbitration proceedings which may have limited precedential or predictive value further complicating management’s ability to estimate probable loss for reinsured asbestos and environmental claims. Management believes these issues are not likely to be resolved in the near future, and the ultimate costs may vary materially from the amounts currently recorded resulting in material changes in loss reserves. In addition, while the Company believes that improved actuarial techniques and databases have assisted in its ability to estimate asbestos, environmental, and other discontinued lines net loss reserves, these refinements may subsequently prove to be inadequate indicators of the extent of probable losses. Due to the uncertainties and factors described above, management believes it is not practicable to develop a meaningful range for any such additional net loss reserves that may be required.

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

The Company and its domestic subsidiaries file a consolidated federal income tax return. Tax liabilities and benefits realized by the consolidated group are allocated as generated by the respective entities.

The Internal Revenue Service (“IRS”) is currently examining the Company’s 2013 and 2014 federal income tax returns. The Company’s tax years prior to 2013 have been examined by the IRS and the statute of limitations has expired on those years. Any adjustments that may result from IRS examinations of the Company’s tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.

The reconciliation of the change in the amount of unrecognized tax benefits for the years ended December 31 is as follows:



($ in millions)	2016		2015		2014
Balance – beginning of year	$	7	$	—	$	—
Increase for tax positions taken in a prior year	—		4		—
Decrease for tax positions taken in a prior year	—		—		—
Increase for tax positions taken in the current year	3		3		—
Decrease for tax positions taken in the current year	—		—		—
Decrease for settlements	—		—		—
Reductions due to lapse of statute of limitations	—		—		—
Balance – end of year	$	10	$	7	$	—

The Company believes it is reasonably possible that the liability balance will not significantly increase within the next twelve months. Because of the impact of deferred tax accounting, recognition of previously unrecognized tax benefits is not expected to impact the Company’s effective tax rate.

The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. The Company did not record interest income or expense relating to unrecognized tax benefits in income tax expense in 2016, 2015 or 2014. As of December 31, 2016 and 2015, there was no interest accrued with respect to unrecognized tax benefits. No amounts have been accrued for penalties.

The components of the deferred income tax assets and liabilities as of December 31 are as follows:



($ in millions)	2016			2015
Deferred assets
Unearned premium reserves	$	819		$	796
Pension	294			236
Accrued compensation	203			189
Discount on loss reserves	188			203
Difference in tax bases of invested assets	78			202
Other postretirement benefits	64			76
Other assets	118			137
Total deferred assets	1,764			1,839
Deferred liabilities
DAC	(1,211		)	(1,157		)
Unrealized net capital gains	(529		)	(303		)
Life and annuity reserves	(324		)	(260		)
Other liabilities	(187		)	(209		)
Total deferred liabilities	(2,251		)	(1,929		)
Net deferred liability	$	(487	)	$	(90	)

Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized based on the Company’s assessment that the deductions ultimately recognized for tax purposes will be fully utilized.

As of December 31, 2016, the Company has net operating loss carryforwards of $42 million which will expire at the end of 2025 through 2029.

The components of income tax expense for the years ended December 31 are as follows:



($ in millions)	2016		2015		2014
Current	$	654	$	1,033	$	1,123
Deferred	223		78		263
Total income tax expense	$	877	$	1,111	$	1,386

The Company paid income taxes of $359 million, $1.07 billion and $1.07 billion in 2016, 2015 and 2014, respectively. The Company had current income tax payable of $135 million as of December 31, 2016 and current income tax receivable of $59 million as of December 31, 2015.

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31 is as follows:



	2016		2015		2014
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Tax-exempt income	(1.2	)	(1.0	)	(0.9	)
Tax credits	(1.2	)	(0.9	)	(0.7	)
Sale of subsidiary	—		—		(0.9	)
Other ⁽¹⁾	(0.7	)	0.8		0.2
Effective income tax rate	31.9	%	33.9	%	32.7	%

______________________________


⁽¹⁾	Includes $45 million of income tax expense related to the change in accounting guidance for investments in qualified affordable housing projects adopted in 2015.

Statutory Financial Information and Dividend Limitations

12 Months Ended

Dec. 31, 2016

Statutory Financial Information and Dividend Limitations

Statutory Financial Information and Dividend Limitations

Allstate’s domestic property-liability and life insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Prescribed statutory accounting practices include a variety of publications of the National Association of Insurance Commissioners (“NAIC”), as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed.

All states require domiciled insurance companies to prepare statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition and certain sales inducement costs to expense as incurred, establishing life insurance reserves based on different actuarial assumptions, and valuing certain investments and establishing deferred taxes on a different basis.

Statutory net income (loss) and capital and surplus of Allstate’s domestic insurance subsidiaries, determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities are as follows:



($ in millions)	Net income (loss)							Capital and surplus
	2016		2015			2014		2016		2015
Amounts by major business type:
Property-Liability ⁽¹⁾	$	1,520	$	1,826		$	2,501	$	13,436	$	13,332
Allstate Financial	197		(56		)	1,130		3,383		3,154
Amount per statutory accounting practices	$	1,717	$	1,770		$	3,631	$	16,819	$	16,486

______________________________


⁽¹⁾	The Property-Liability statutory capital and surplus balances exclude wholly-owned subsidiaries included in the Allstate Financial segment.

Dividend Limitations

There are no regulatory restrictions that limit the payment of dividends by the Corporation, except those generally applicable to corporations incorporated in Delaware. Dividends are payable only out of certain components of shareholders’ equity as permitted by Delaware law. However, the ability of the Corporation to pay dividends is dependent on business conditions, income, cash requirements of the Company, receipt of dividends from AIC and other relevant factors.

The payment of shareholder dividends by AIC without the prior approval of the Illinois Department of Insurance (“IL DOI”) is limited to formula amounts based on net income and capital and surplus, determined in conformity with statutory accounting practices, as well as the timing and amount of dividends paid in the preceding twelve months. AIC paid dividends of $1.90 billion in 2016. The maximum amount of dividends AIC will be able to pay without prior IL DOI approval at a given point in time during 2017 is $1.56 billion, less dividends paid during the preceding twelve months measured at that point in time. The payment of a dividend in excess of this amount requires 30 days advance written notice to the IL DOI. The dividend is deemed approved, unless the IL DOI disapproves it within the 30 day notice period. Additionally, any dividend must be paid out of unassigned surplus excluding unrealized appreciation from investments, which for AIC totaled $10.26 billion as of December 31, 2016, and cannot result in capital and surplus being less than the minimum amount required by law.

Under state insurance laws, insurance companies are required to maintain paid up capital of not less than the minimum capital requirement applicable to the types of insurance they are authorized to write. Insurance companies are also subject to risk-based capital (“RBC”) requirements adopted by state insurance regulators. A company’s “authorized control level RBC” is calculated using various factors applied to certain financial balances and activity. Companies that do not maintain adjusted statutory capital and surplus at a level in excess of the company action level RBC, which is two times authorized control level RBC, are required to take specified actions. Company action level RBC is significantly in excess of the minimum capital requirements. Total adjusted statutory capital and surplus and authorized control level RBC of AIC were $15.88 billion and $2.56 billion, respectively, as of December 31, 2016. Substantially all of the Corporation’s insurance subsidiaries are subsidiaries of and/or reinsure all of their business to AIC, including ALIC. AIC’s subsidiaries are included as a component of AIC’s total statutory capital and surplus.

The amount of restricted net assets, as represented by the Corporation’s investment in its insurance subsidiaries, was $23 billion as of December 31, 2016.

Intercompany transactions

Notification and approval of intercompany lending activities is also required by the IL DOI for transactions that exceed a level that is based on a formula using statutory admitted assets and statutory surplus.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Benefit Plans

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Benefit Plans

Pension and other postretirement plans

Defined benefit pension plans cover most full-time employees, certain part-time employees and employee-agents. Benefits under the pension plans are based upon the employee’s length of service, eligible annual compensation and, prior to January 1, 2014, either a cash balance or final average pay formula. A cash balance formula applies to all eligible employees hired after August 1, 2002. Eligible employees hired before August 1, 2002 chose between the cash balance formula and the final average pay formula. In July 2013, the Company amended its primary plans effective January 1, 2014 to introduce a new cash balance formula to replace the previous formulas (including the final average pay formula and the previous cash balance formula) under which eligible employees accrue benefits.

The Company also provides a medical coverage subsidy for eligible employees hired before January 1, 2003, including their eligible dependents, when they retire and certain life insurance benefits for eligible retirees (“postretirement benefits”). In July 2013, the Company amended the plan to eliminate the life insurance benefits effective January 1, 2014 for current eligible employees and effective January 1, 2016 for eligible retirees who retired after 1989. In 2016, the Company continues to pay life insurance premiums for certain retiree plaintiffs subject to a court order requiring it to do so until such time as their lawsuit seeking to keep their life insurance benefits intact is resolved. Qualified employees may become eligible for a medical subsidy if they retire in accordance with the terms of the applicable plans and are continuously insured under the Company’s group plans or other approved plans in accordance with the plan’s participation requirements. The Company shares the cost of retiree medical benefits with non Medicare-eligible retirees based on years of service, with the Company’s share being subject to a 5% limit on future annual medical cost inflation after retirement. For Medicare-eligible retirees, the Company provides a fixed Company contribution based on years of service and other factors, which is not subject to adjustments for inflation.

The Company has reserved the right to modify or terminate its benefit plans at any time and for any reason.

Obligations and funded status

The Company calculates benefit obligations based upon generally accepted actuarial methodologies using the projected benefit obligation (“PBO”) for pension plans and the accumulated postretirement benefit obligation (“APBO”) for other postretirement plans. The determination of pension costs and other postretirement obligations are determined using a December 31 measurement date. The benefit obligations represent the actuarial present value of all benefits attributed to employee service rendered as of the measurement date. The PBO is measured using the pension benefit formulas and assumptions as to future compensation levels. A plan’s funded status is calculated as the difference between the benefit obligation and the fair value of plan assets. The Company’s funding policy for the pension plans is to make contributions at a level in accordance with regulations under the Internal Revenue Code (“IRC”) and generally accepted actuarial principles. The Company’s other postretirement benefit plans are not funded.

The components of the pension and other postretirement plans’ funded status that are reflected in the Consolidated Statements of Financial Position as of December 31 are as follows:



($ in millions)	Pension benefits						Postretirement benefits
	2016			2015			2016			2015
Fair value of plan assets	$	5,650		$	5,353		$	—		$	—
Less: Benefit obligation	6,591			6,130			373			405
Funded status	$	(941	)	$	(777	)	$	(373	)	$	(405	)

Items not yet recognized as a component of net periodic cost:
Net actuarial loss (gain)	$	2,807		$	2,710		$	(251	)	$	(263	)
Prior service credit	(310		)	(365		)	(62		)	(61		)
Unrecognized pension and other postretirement benefit cost, pre-tax	2,497			2,345			(313		)	(324		)
Deferred income tax	(874		)	(821		)	109			115
Unrecognized pension and other postretirement benefit cost	$	1,623		$	1,524		$	(204	)	$	(209	)

The $97 million increase in the pension net actuarial loss during 2016 is primarily related to a decrease in the discount rate. The majority of the $2.81 billion net actuarial pension benefit losses not yet recognized in 2016 reflects decreases in the discount rate and the effect of unfavorable equity market conditions on the value of the pension plan assets in prior years. The $12 million decrease in the OPEB net actuarial gain during 2016 primarily related to favorable claims and participant experience.

The primary qualified employee plan represents 81% of the pension benefits’ underfunded status as of December 31, 2016.

The change in 2016 in items not yet recognized as a component of net periodic cost, which is recorded in unrecognized pension and other postretirement benefit cost, is shown in the table below.



($ in millions)	Pension benefits			Postretirement benefits
Items not yet recognized as a component of net periodic cost – December 31, 2015	$	2,345		$	(324	)
Net actuarial loss (gain) arising during the period	294			(14		)
Net actuarial (loss) gain amortized to net periodic benefit cost	(201		)	24
Prior service credit arising during the period	—			(22		)
Prior service credit amortized to net periodic benefit cost	56			21
Translation adjustment and other	3			2
Items not yet recognized as a component of net periodic cost – December 31, 2016	$	2,497		$	(313	)

The net actuarial loss (gain) is recognized as a component of net periodic cost amortized over the average remaining service period of active employees expected to receive benefits. Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost during 2017 are shown in the table below.



($ in millions)	Pension benefits			Postretirement benefits
Net actuarial loss (gain)	$	189		$	(24	)
Prior service credit	(56		)	(24		)

The accumulated benefit obligation (“ABO”) for all defined benefit pension plans was $6.52 billion and $6.05 billion as of December 31, 2016 and 2015, respectively. The ABO is the actuarial present value of all benefits attributed by the pension benefit formula to employee service rendered at the measurement date. However, it differs from the PBO due to the exclusion of an assumption as to future compensation levels.

The PBO, ABO and fair value of plan assets for the Company’s pension plans with an ABO in excess of plan assets were $6.24 billion, $6.18 billion and $5.30 billion, respectively, as of December 31, 2016 and $5.81 billion, $5.74 billion and $5.02 billion, respectively, as of December 31, 2015. Included in the accrued benefit cost of the pension benefits are certain unfunded non-qualified plans with accrued benefit costs of $141 million and $143 million for 2016 and 2015, respectively.

The changes in benefit obligations for all plans for the years ended December 31 are as follows:



($ in millions)	Pension benefits						Postretirement benefits
	2016			2015			2016			2015
Benefit obligation, beginning of year	$	6,130		$	6,493		$	405		$	575
Service cost	113			114			9			12
Interest cost	286			258			17			23
Participant contributions	1			—			16			19
Actuarial loss (gain)	387			(225		)	(14		)	(158		)
Benefits paid ⁽¹⁾	(301		)	(443		)	(41		)	(54		)
Plan amendments	—			—			(22		)	—
Translation adjustment and other	(25		)	(67		)	3			(12		)
Benefit obligation, end of year	$	6,591		$	6,130		$	373		$	405

______________________________


⁽¹⁾	Benefits paid include lump sum distributions, a portion of which may trigger settlement accounting treatment.

Components of net periodic cost

The components of net periodic cost for all plans for the years ended December 31 are as follows:



	Pension benefits									Postretirement benefits
($ in millions)	2016			2015			2014			2016			2015			2014
Service cost	$	113		$	114		$	96		$	9		$	12		$	10
Interest cost	286			258			262			17			23			23
Expected return on plan assets	(398		)	(424		)	(398		)	—			—			—
Amortization of:
Prior service credit	(56		)	(56		)	(58		)	(21		)	(22		)	(23		)
Net actuarial loss (gain)	174			190			127			(24		)	(9		)	(22		)
Settlement loss	27			31			54			—			—			—
Net periodic cost (credit)	$	146		$	113		$	83		$	(19	)	$	4		$	(12	)

Assumptions

Weighted average assumptions used to determine net pension cost and net postretirement benefit cost for the years ended December 31 are:



	Pension benefits						Postretirement benefits
($ in millions)	2016		2015		2014		2016		2015		2014
Discount rate	4.83	%	4.10	%	5.00	%	4.59	%	3.97	%	5.11	%
Rate of increase in compensation levels	3.20		3.50		3.50		n/a		n/a		n/a
Expected long-term rate of return on plan assets	7.30		7.33		7.36		n/a		n/a		n/a

Weighted average assumptions used to determine benefit obligations as of December 31 are listed in the following table.



	Pension benefits				Postretirement benefits
	2016		2015		2016		2015
Discount rate	4.15	%	4.83	%	4.07	%	4.56	%
Rate of increase in compensation levels	3.20		3.20		n/a		n/a

The weighted average health care cost trend rate used in measuring the accumulated postretirement benefit cost is 6.3% for 2017, gradually declining to 4.5% in 2038 and remaining at that level thereafter.

Assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement health care plans. A one percentage-point increase in assumed health care cost trend rates would increase the total of the service and interest cost components of net periodic benefit cost of other postretirement benefits and the APBO by $2 million and $24 million, respectively. A one percentage-point decrease in assumed health care cost trend rates would decrease the total of the service and interest cost components of net periodic benefit cost of other postretirement benefits and the APBO by $2 million and $21 million, respectively.

Pension plan assets

The change in pension plan assets for the years ended December 31 is as follows:



($ in millions)	2016			2015
Fair value of plan assets, beginning of year	$	5,353		$	5,783
Actual return on plan assets	491			(43		)
Employer contribution	131			125
Benefits paid	(301		)	(443		)
Translation adjustment and other	(24		)	(69		)
Fair value of plan assets, end of year	$	5,650		$	5,353

In general, the Company’s pension plan assets are managed in accordance with investment policies approved by pension investment committees. The purpose of the policies is to ensure the plans’ long-term ability to meet benefit obligations by prudently investing plan assets and Company contributions, while taking into consideration regulatory and legal requirements and current market conditions. The investment policies are reviewed periodically and specify target plan asset allocation by asset category. In addition, the policies specify various asset allocation and other risk limits. The target asset allocation takes the plans’ funding status into consideration, among other factors, including anticipated demographic changes or liquidity requirements that may affect the funding status such as the potential impact of lump sum settlements as well as existing or expected market conditions. In general, the allocation has a lower overall investment risk when a plan is in a stronger funded status position since there is less economic incentive to take risk to increase the expected returns on the plan assets. As a result, the primary employee plan has a greater allocation to equity securities than the employee-agent plan. The primary qualified employee plan comprises 80% of total plan assets and 86% of equity securities. The pension plans’ asset exposure within each asset category is tracked against widely accepted established benchmarks for each asset class with limits on variation from the benchmark established in the investment policy. Pension plan assets are regularly monitored for compliance with these limits and other risk limits specified in the investment policies.

The pension plans’ weighted average target asset allocation and the actual percentage of plan assets, by asset category as of December 31, 2016 are as follows:



	Target asset allocation ⁽¹⁾	Actual percentage of plan assets
Asset category	2016	2016		2015
Equity securities ⁽²⁾	50 - 68%	62	%	60	%
Fixed income securities	27 - 37%	29		30
Limited partnership interests	0 - 14%	7		7
Short-term investments and other	—	2		3
Total without securities lending ⁽³⁾		100	%	100	%

______________________________


⁽¹⁾	The target asset allocation considers risk based exposure while the actual percentage of plan assets utilizes a financial reporting view excluding exposure provided through derivatives.

⁽²⁾

The actual percentage of plan assets for equity securities include private equity investments that are subject to the limited partnership interests target allocation of 1% and 2% in 2016 and 2015, respectively, fixed income mutual funds that are subject to the fixed income securities target allocation of 3% for both 2016 and 2015 as well as 1% of equity exposure created through a derivative which is not included in the actual allocations in 2016.


⁽³⁾	Securities lending collateral reinvestment of $143 million and $152 million is excluded from the table above in 2016 and 2015, respectively.

The target asset allocation for an asset category may be achieved either through direct investment holdings, through replication using derivative instruments (e.g., futures or swaps) or net of hedges using derivative instruments to reduce exposure to an asset category. The net notional amount of derivatives used for replication and hedges is limited to 105% or 115% of total plan assets depending on the plan. Market performance of the different asset categories may, from time to time, cause deviation from the target asset allocation. The asset allocation mix is reviewed on a periodic basis and rebalanced to bring the allocation within the target ranges.

Outside the target asset allocation, the pension plans participate in a securities lending program to enhance returns. As of December 31, 2016, U.S. government fixed income securities and U.S. equity securities are lent out and cash collateral is invested in short-term investments.

The following table presents the fair values of pension plan assets as of December 31, 2016.



($ in millions)
	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2016
Equity securities	$	155		$	3,230		$	79		$	3,464
Fixed income securities:
U.S. government and agencies	30			285			—			315
Corporate	—			1,309			10			1,319
Short-term investments	144			121			—			265
Limited partnership interests:
Real estate funds ⁽¹⁾	—			—			100			100
Private equity funds ⁽²⁾	—			—			261			261
Hedge funds	—			—			2			2
Cash and cash equivalents	32			—			—			32
Free-standing derivatives:
Assets	(1		)	1			—			—
Total plan assets at fair value	$	360		$	4,946		$	452		5,758
% of total plan assets at fair value	6.3		%	85.9		%	7.8		%	100.0		%

Securities lending obligation ⁽³⁾										(158		)
Other net plan assets ⁽⁴⁾										50
Total reported plan assets										$	5,650

______________________________


⁽¹⁾	Real estate funds held by the pension plans are primarily invested in U.S. commercial real estate.


⁽²⁾	Private equity investments held by the pension plans are primarily comprised of buyout and growth funds in North America and other developed markets.

⁽³⁾

The securities lending obligation represents the plan’s obligation to return securities lending collateral received under a securities lending program. The terms of the program allow both the plan and the counterparty the right and ability to redeem/return the securities loaned on short notice. Due to its relatively short-term nature, the outstanding balance of the obligation approximates fair value.


⁽⁴⁾	Other net plan assets represent interest and dividends receivable and net receivables related to settlements of investment transactions, such as purchases and sales.

The following table presents the fair values of pension plan assets as of December 31, 2015.



($ in millions)
	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2015
Equity securities	$	136		$	2,945		$	100		$	3,181
Fixed income securities:
U.S. government and agencies	72			334			—			406
Municipal	—			—			7			7
Corporate	—			1,205			10			1,215
Short-term investments	112			184			—			296
Limited partnership interests:
Real estate funds	—			—			104			104
Private equity funds	—			—			237			237
Hedge funds	—			—			33			33
Cash and cash equivalents	22			—			—			22
Total plan assets at fair value	$	342		$	4,668		$	491		5,501
% of total plan assets at fair value	6.2		%	84.9		%	8.9		%	100.0		%

Securities lending obligation										(167		)
Other net plan assets										19
Total reported plan assets										$	5,353

The fair values of pension plan assets are estimated using the same methodologies and inputs as those used to determine the fair values for the respective asset category of the Company. These methodologies and inputs are disclosed in Note 6.

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2016.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2015		Relating to assets sold during the period			Relating to assets still held at the reporting date			Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2016
Equity securities	$	100	$	(2	)	$	(1	)	$	(18	)	$	—	$	79
Fixed income securities:
Municipal	7		—			—			(7		)	—		—
Corporate	10		—			—			(5		)	5		10
Limited partnership interests:
Real estate funds	104		—			5			(9		)	—		100
Private equity funds	237		—			24			—			—		261
Hedge funds	33		—			(2		)	(29		)	—		2
Total Level 3 plan assets	$	491	$	(2	)	$	26		$	(68	)	$	5	$	452

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2015.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2014		Relating to assets sold during the period		Relating to assets still held at the reporting date			Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3			Balance as of December 31, 2015
Equity securities	$	75	$	1	$	(5	)	$	29		$	—		$	100
Fixed income securities:
Municipal	14		—		—			(7		)	—			7
Corporate	12		—		—			—			(2		)	10
Limited partnership interests:
Real estate funds	154		—		(12		)	(38		)	—			104
Private equity funds	218		—		(8		)	27			—			237
Hedge funds	32		—		1			—			—			33
Total Level 3 plan assets	$	505	$	1	$	(24	)	$	11		$	(2	)	$	491

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2014.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2013		Relating to assets sold during the period			Relating to assets still held at the reporting date		Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2014
Equity securities	$	237	$	2		$	2	$	(166	)	$	—	$	75
Fixed income securities:
Municipal	18		—			—		(4		)	—		14
Corporate	18		—			—		(6		)	—		12
Limited partnership interests:
Real estate funds	197		(3		)	6		(46		)	—		154
Private equity funds	211		(4		)	4		7			—		218
Hedge funds	9		—			—		23			—		32
Total Level 3 plan assets	$	690	$	(5	)	$	12	$	(192	)	$	—	$	505

The expected long-term rate of return on plan assets reflects the average rate of earnings expected on plan assets. The Company’s assumption for the expected long-term rate of return on plan assets is reviewed annually giving consideration to appropriate financial data including, but not limited to, the plan asset allocation, forward-looking expected returns for the period over which benefits will be paid, historical returns on plan assets and other relevant market data. Given the long-term forward looking nature of this assumption, the actual returns in any one year do not immediately result in a change. In giving consideration to the targeted plan asset allocation, the Company evaluated returns using the same sources it has used historically which include: historical average asset class returns from an independent nationally recognized vendor of this type of data blended together using the asset allocation policy weights for the Company’s pension plans; asset class return forecasts from a large global independent asset management firm that specializes in providing multi-asset class investment fund products which were blended together using the asset allocation policy weights; and expected portfolio returns from a proprietary simulation methodology of a widely recognized external investment consulting firm that performs asset allocation and actuarial services for corporate pension plan sponsors. This same methodology has been applied on a consistent basis each year. All of these were consistent with the Company’s weighted average long-term rate of return on plan assets assumption of 7.30% used for 2016 and 7.31% that will be used for 2017. The assumption for the primary qualified employee plan is 7.75% and the employee-agent plan is 5.75% for both years. The employee-agent plan assumption is lower than the primary qualified employee plan assumption due to a lower investment allocation to equity securities and a higher allocation to fixed income securities. As of the 2016 measurement date, the arithmetic average of the annual actual return on plan assets for the most recent 10 and 5 years was 6.5% and 8.5%, respectively.

Cash flows

There was no required cash contribution necessary to satisfy the minimum funding requirement under the IRC for the tax qualified pension plans as of December 31, 2016. The Company currently plans to contribute $136 million to its pension plans in 2017.

The Company contributed $25 million and $35 million to the postretirement benefit plans in 2016 and 2015, respectively. Contributions by participants were $16 million and $19 million in 2016 and 2015, respectively.

Estimated future benefit payments

Estimated future benefit payments expected to be paid in the next 10 years, based on the assumptions used to measure the Company’s benefit obligation as of December 31, 2016, are presented in the table below.



($ in millions)	Pension benefits		Postretirement benefits
2017	$	412	$	23
2018	421		23
2019	463		24
2020	487		25
2021	521		26
2022-2026	2,512		137
Total benefit payments	$	4,816	$	258

Allstate 401(k) Savings Plan

Employees of the Company, with the exception of those employed by the Company’s international, Esurance and Answer Financial subsidiaries, are eligible to become members of the Allstate 401(k) Savings Plan (“Allstate Plan”). The Company’s contributions are based on the Company’s matching obligation. The Company is responsible for funding its anticipated contribution to the Allstate Plan, and may, at the discretion of management, use the ESOP to pre-fund certain portions. In connection with the Allstate Plan, the Company has a note from the ESOP with a principal balance of $5 million as of December 31, 2016. The ESOP note has a fixed interest rate of 7.9% and matures in 2019. The Company records dividends on the ESOP shares in retained income and all the shares held by the ESOP are included in basic and diluted weighted average common shares outstanding.

The Company’s contribution to the Allstate Plan was $80 million, $79 million and $75 million in 2016, 2015 and 2014, respectively. These amounts were reduced by the ESOP benefit computed for the years ended December 31 as follows:



($ in millions)	2016			2015			2014
Interest expense recognized by ESOP	$	1		$	1		$	1
Less: dividends accrued on ESOP shares	(3		)	(3		)	(4		)
Cost of shares allocated	7			10			8
Compensation expense	5			8			5
Reduction of defined contribution due to ESOP	60			73			71
ESOP benefit	$	(55	)	$	(65	)	$	(66	)

The Company made $2 million, $2 million and $3 million in contributions to the ESOP in 2016, 2015 and 2014, respectively. As of December 31, 2016, total committed to be released, allocated and unallocated ESOP shares were 1 million, 37 million and 1 million, respectively.

Allstate’s Canadian, Esurance and Answer Financial subsidiaries sponsor defined contribution plans for their eligible employees. Expense for these plans was $10 million, $10 million and $11 million in 2016, 2015 and 2014, respectively.

Equity Incentive Plans

12 Months Ended

Dec. 31, 2016

Equity Incentive Plans

Equity Incentive Plans

The Company currently has equity incentive plans under which the Company grants nonqualified stock options, restricted stock units and performance stock awards to certain employees and directors of the Company. The total compensation expense related to equity awards was $80 million, $81 million and $88 million and the total income tax benefits were $28 million, $28 million and $30 million for 2016, 2015 and 2014, respectively. Total cash received from the exercise of options was $187 million, $187 million and $314 million for 2016, 2015 and 2014, respectively. Total tax benefit realized on options exercised and the release of stock restrictions was $61 million, $82 million and $73 million for 2016, 2015 and 2014, respectively.

The Company records compensation expense related to awards under these plans over the shorter of the period in which the requisite service is rendered or retirement eligibility is attained. Compensation expense for performance share awards is based on the probable number of awards expected to vest using the performance level most likely to be achieved at the end of the performance period. As of December 31, 2016, total unrecognized compensation cost related to all nonvested awards was $62 million, of which $25 million related to nonqualified stock options which are expected to be recognized over the weighted average vesting period of 1.72 years, $25 million related to restricted stock units which are expected to be recognized over the weighted average vesting period of 1.79 years and $12 million related to performance stock awards which are expected to be recognized over the weighted average vesting period of 1.68 years.

Options are granted to employees with exercise prices equal to the closing share price of the Company’s common stock on the applicable grant date. Options granted to employees on or after February 18, 2014 vest ratably over a three-year period. Options granted prior to February 18, 2014 vest 50% on the second anniversary of the grant date and 25% on each of the third and fourth anniversaries of the grant date. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. Options may be exercised once vested and will expire no later than ten years after the date of grant.

Restricted stock units for directors vest immediately and convert into shares of stock on the earlier of the day of the third anniversary of the grant date or the date the director’s service terminates, unless a deferred period of restriction is elected. Restricted stock units granted to directors prior to June 1, 2016 convert upon leaving the board. Restricted stock units granted to employees on or after February 18, 2014 vest on the day prior to the third anniversary of the grant date. Awards granted to employees prior to February 18, 2014 vest 50% on the day prior to the second anniversary of the grant date and 25% on each of the days prior to the third and fourth anniversaries of the grant date. Restricted stock units granted to employees subsequently convert into shares of stock on the day of the respective anniversary of the grant date. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances.

Performance stock awards vest into shares of stock on the day prior to the third anniversary of the grant date. Vesting of the number of performance stock awards earned based on the attainment of performance goals for each of the performance periods is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances, and achievement of performance goals. Performance stock awards subsequently convert into shares of stock in full the day of the anniversary of the grant date.

A total of 97.6 million shares of common stock were authorized to be used for awards under the plans, subject to adjustment in accordance with the plans’ terms. As of December 31, 2016, 21.7 million shares were reserved and remained available for future issuance under these plans. The Company uses its treasury shares for these issuances.

The fair value of each option grant is estimated on the date of grant using a binomial lattice model. The Company uses historical data to estimate option exercise and employee termination within the valuation model. In addition, separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted is derived from the output of the binominal lattice model and represents the period of time that options granted are expected to be outstanding. The expected volatility of the price of the underlying shares is implied based on traded options and historical volatility of the Company’s common stock. The expected dividends were based on the current dividend yield of the Company’s stock as of the date of the grant. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions used are shown in the following table.



	2016		2015		2014
Weighted average expected term	5.0 years		6.5 years		6.5 years
Expected volatility	16.0 - 34.3%		16.0 - 37.8%		16.8 - 42.2%
Weighted average volatility	24.3	%	24.7	%	28.3	%
Expected dividends	1.9 - 2.1%		1.6 - 2.1%		1.7 - 2.2%
Weighted average expected dividends	2.1	%	1.7	%	2.1	%
Risk-free rate	0.2 - 2.4%		0.0 - 2.4%		0.0 - 3.0%

A summary of option activity for the year ended December 31, 2016 is shown in the following table.



	Number (in 000s)		Weighted average exercise price		Aggregate intrinsic value (in 000s)		Weighted average remaining contractual term (years)
Outstanding as of January 1, 2016	15,716		$	45.81
Granted	3,013		62.84
Exercised	(4,755	)	43.20
Forfeited	(378	)	61.64
Expired	(36	)	64.83
Outstanding as of December 31, 2016	13,560		50.01		$	326,911	6.0
Outstanding, net of expected forfeitures	13,434		49.88		325,668		5.9
Outstanding, exercisable (“vested”)	8,104		42.24		258,367		4.5

The weighted average grant date fair value of options granted was $12.25, $15.45 and $12.50 during 2016, 2015 and 2014, respectively. The intrinsic value, which is the difference between the fair value and the exercise price, of options exercised was $119 million, $117 million and $151 million during 2016, 2015 and 2014, respectively.

The changes in restricted stock units are shown in the following table for the year ended December 31, 2016.



	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2016	1,839		$	52.86
Granted	360		63.51
Vested	(449	)	39.30
Forfeited	(71	)	59.51
Nonvested as of December 31, 2016	1,679		58.49

The fair value of restricted stock units is based on the market value of the Company’s stock as of the date of the grant. The market value in part reflects the payment of future dividends expected. The weighted average grant date fair value of restricted stock units granted was $63.51, $69.25 and $52.70 during 2016, 2015 and 2014, respectively. The total fair value of restricted stock units vested was $29 million, $63 million and $60 million during 2016, 2015 and 2014, respectively.

The changes in performance stock awards are shown in the following table for the year ended December 31, 2016.



	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2016	930		$	53.27
Granted	520		62.32
Adjustment for performance achievement	(15	)	45.61
Vested	(442	)	45.61
Forfeited	(74	)	61.87
Nonvested as of December 31, 2016	919		61.50

The change in PSA’s comprises those initially granted in 2016 and the adjustment to previously granted PSA’s for performance achievement. The fair value of performance stock awards is based on the market value of the Company’s stock as of the date of the grant. The market value in part reflects the payment of future dividends expected. The weighted average grant date fair value of performance stock awards granted was $62.32, $70.37 and $52.18 during 2016, 2015 and 2014, respectively. The total fair value of performance stock awards vested was $28 million and $56 million during 2016 and 2015, respectively. None of the performance stock awards vested during 2014.

The tax benefit realized related to tax deductions from stock option exercises and included in shareholders’ equity was $23 million in each of 2016, 2015 and 2014. The tax benefit realized in 2016, 2015 and 2014 related to all stock-based compensation and recorded directly to shareholders’ equity was $30 million, $46 million and $32 million, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Reporting Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Reporting Segments

Allstate management is organized around products and services, and this structure is considered in the identification of its four reportable segments. These segments and their respective operations are as follows:

Allstate Protection principally sells private passenger auto and homeowners insurance in the United States and Canada. Revenues from external customers generated outside the United States were $1.06 billion, $1.03 billion and $1.08 billion in 2016, 2015 and 2014, respectively. The Company evaluates the results of this segment based upon underwriting results.

Discontinued Lines and Coverages consists of property-liability business no longer written by Allstate, including results from asbestos, environmental and other discontinued lines claims, and certain commercial and other businesses in run-off. This segment also includes the historical results of the commercial and reinsurance businesses sold in 1996. The Company evaluates the results of this segment based upon underwriting results.

Allstate Financial sells traditional, interest-sensitive and variable life insurance and voluntary accident and health insurance products. Allstate Financial previously offered and continues to have in force fixed annuities such as deferred and immediate annuities. Allstate Financial also previously offered institutional products consisting of funding agreements sold to unaffiliated trusts that used them to back medium-term notes. There are no institutional products outstanding as of December 31, 2016. Revenues from external customers generated outside the United States relate to voluntary accident and health insurance sold in Canada and were $1 million in 2016. Allstate Financial had no revenues from external customers generated outside the United States in 2015 or 2014. The Company evaluates the results of this segment based upon operating income.

Corporate and Other comprises holding company activities and certain non-insurance operations.

Allstate Protection and Discontinued Lines and Coverages comprise Property-Liability. The Company does not allocate Property-Liability 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, Allstate Financial, and Corporate and Other levels for decision-making purposes. Allstate Protection and Allstate Financial performance and resources are managed by committees of senior officers of the respective segments.

The accounting policies of the reportable segments are the same as those described in Note 2. The effects of certain inter-segment transactions are excluded from segment performance evaluation and therefore are eliminated in the segment results.

Measuring segment profit or loss

The measure of segment profit or loss used by Allstate’s management in evaluating performance is underwriting income for the Allstate Protection and Discontinued Lines and Coverages segments and operating income for the Allstate Financial 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, less claims and claims expenses (“losses”), amortization of DAC, operating costs and expenses, and restructuring and related charges as determined using GAAP.

Operating 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 operating income,


•	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,


•	amortization of purchased intangible assets, after-tax,


•	gain (loss) on disposition of operations, after-tax, and


•	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.

Summarized revenue data for each of the Company’s reportable segments for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Revenues
Property-Liability
Property-liability insurance premiums
Auto	$	21,264		$	20,410		$	19,344
Homeowners	7,257			7,136			6,904
Other personal lines	1,700			1,692			1,662
Commercial lines	506			510			476
Other business lines	580			561			542
Allstate Protection	31,307			30,309			28,928
Discontinued Lines and Coverages	—			—			1
Total property-liability insurance premiums	31,307			30,309			28,929
Net investment income	1,266			1,237			1,301
Realized capital gains and losses	(6		)	(237		)	549
Total Property-Liability	32,567			31,309			30,779
Allstate Financial
Life and annuity premiums and contract charges
Life and annuity premiums
Traditional life insurance	573			542			511
Immediate annuities with life contingencies	—			—			4
Accident and health insurance	859			780			744
Total life and annuity premiums	1,432			1,322			1,259
Contract charges
Interest-sensitive life insurance	829			822			879
Fixed annuities	14			14			19
Total contract charges	843			836			898
Total life and annuity premiums and contract charges	2,275			2,158			2,157
Net investment income	1,734			1,884			2,131
Realized capital gains and losses	(81		)	267			144
Total Allstate Financial	3,928			4,309			4,432
Corporate and Other
Service fees	4			3			5
Net investment income	42			35			27
Realized capital gains and losses	(3		)	—			1
Total Corporate and Other before reclassification of service fees	43			38			33
Reclassification of service fees ⁽¹⁾	(4		)	(3		)	(5		)
Total Corporate and Other	39			35			28
Consolidated revenues	$	36,534		$	35,653		$	35,239

______________________________


⁽¹⁾	For presentation in the Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Summarized financial performance data for each of the Company’s reportable segments for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Net income
Property-Liability
Underwriting income
Allstate Protection	$	1,317		$	1,614		$	1,887
Discontinued Lines and Coverages	(107		)	(55		)	(115		)
Total underwriting income	1,210			1,559			1,772
Net investment income	1,266			1,237			1,301
Income tax expense on operations ⁽¹⁾	(812		)	(952		)	(1,040		)
Realized capital gains and losses, after-tax	—			(154		)	357
Gain on disposition of operations, after-tax	—			—			37
Property-Liability net income applicable to common shareholders	1,664			1,690			2,427
Allstate Financial
Life and annuity premiums and contract charges	2,275			2,158			2,157
Net investment income	1,734			1,884			2,131
Periodic settlements and accruals on non-hedge derivative instruments	—			—			(1		)
Contract benefits and interest credited to contractholder funds	(2,580		)	(2,563		)	(2,663		)
Operating costs and expenses and amortization of deferred policy acquisition costs	(774		)	(729		)	(721		)
Restructuring and related charges	(1		)	—			(2		)
Income tax expense on operations	(206		)	(241		)	(294		)
Operating income	448			509			607
Realized capital gains and losses, after-tax	(54		)	173			94
Valuation changes on embedded derivatives that are not hedged, after-tax	(2		)	(1		)	(15		)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(4		)	(3		)	(3		)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	—			—			1
Gain (loss) on disposition of operations, after-tax	3			2			(53		)
Change in accounting for investments in qualified affordable housing projects, after-tax	—			(17		)	—
Allstate Financial net income applicable to common shareholders	391			663			631
Corporate and Other
Service fees ⁽²⁾	4			3			5
Net investment income	42			35			27
Operating costs and expenses ⁽²⁾	(328		)	(329		)	(364		)
Income tax benefit on operations	106			109			124
Preferred stock dividends	(116		)	(116		)	(104		)
Operating loss	(292		)	(298		)	(312		)
Realized capital gains and losses, after-tax	(2		)	—			—
Corporate and Other net loss applicable to common shareholders	(294		)	(298		)	(312		)
Consolidated net income applicable to common shareholders	$	1,761		$	2,055		$	2,746

______________________________


⁽¹⁾	Income tax on operations for Property-Liability segment includes $28 million of expense related to the change in accounting guidance for investments in qualified affordable housing projects adopted in 2015.


⁽²⁾	For presentation in the Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Additional significant financial performance data for each of the Company’s reportable segments for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Amortization of DAC
Property-Liability	$	4,267		$	4,102		$	3,875
Allstate Financial	283			262			260
Consolidated	$	4,550		$	4,364		$	4,135

Income tax expense
Property-Liability	$	806		$	869		$	1,211
Allstate Financial	178			351			299
Corporate and Other	(107		)	(109		)	(124		)
Consolidated	$	877		$	1,111		$	1,386

Interest expense is primarily incurred in the Corporate and Other segment. Capital expenditures for long-lived assets are generally made in the Property-Liability segment. A portion of these long-lived assets are used by entities included in the Allstate Financial and Corporate and Other segments and, accordingly, are charged expenses in proportion to their use.

Summarized data for total assets and investments for each of the Company’s reportable segments as of December 31 are as follows:



($ in millions)	2016		2015		2014
Assets
Property-Liability	$	60,394	$	55,671	$	55,767
Allstate Financial	45,945		46,342		49,248
Corporate and Other	2,271		2,643		3,464
Consolidated	$	108,610	$	104,656	$	108,479

Investments
Property-Liability	$	42,722	$	38,479	$	39,083
Allstate Financial	36,840		36,792		38,809
Corporate and Other	2,237		2,487		3,221
Consolidated	$	81,799	$	77,758	$	81,113

The balances above reflect the elimination of related party investments between segments.

- 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.

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+ Details

Other Comprehensive Income

12 Months Ended

Dec. 31, 2016

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income

The components of other comprehensive income (loss) on a pre-tax and after-tax basis for the years ended December 31 are as follows:



($ in millions)	2016									2015									2014
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	486		$	(170	)	$	316		$	(1,896	)	$	663		$	(1,233	)	$	1,026		$	(358	)	$	668
Less: reclassification adjustment of realized capital gains and losses	(180		)	63			(117		)	112			(39		)	73			597			(209		)	388
Unrealized net capital gains and losses	666			(233		)	433			(2,008		)	702			(1,306		)	429			(149		)	280
Unrealized foreign currency translation adjustments	15			(5		)	10			(89		)	31			(58		)	(62		)	22			(40		)
Unrecognized pension and other postretirement benefit cost arising during the period	(263		)	94			(169		)	(64		)	25			(39		)	(1,197		)	421			(776		)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(100		)	35			(65		)	(134		)	47			(87		)	(78		)	27			(51		)
Unrecognized pension and other postretirement benefit cost	(163		)	59			(104		)	70			(22		)	48			(1,119		)	394			(725		)
Other comprehensive income (loss)	$	518		$	(179	)	$	339		$	(2,027	)	$	711		$	(1,316	)	$	(752	)	$	267		$	(485	)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

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+ Details

Quarterly Results (unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (unaudited)



($ in millions, except per share data)	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2016		2015		2016		2015		2016		2015		2016		2015
Revenues	$	8,871	$	8,952	$	9,164	$	8,982	$	9,221	$	9,028	$	9,278	$	8,691
Net income applicable to common shareholders	217		648		242		326		491		621		811		460
Net income applicable to common shareholders earnings per common share - Basic	0.57		1.56		0.65		0.80		1.32		1.56		2.20		1.19
Net income applicable to common shareholders earnings per common share - Diluted	0.57		1.53		0.64		0.79		1.31		1.54		2.18		1.18

SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES

12 Months Ended

Dec. 31, 2016

Summary of Investments, Other than Investments in Related Parties [Abstract]

SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE I — SUMMARY OF INVESTMENTS

OTHER THAN INVESTMENTS IN RELATED PARTIES

DECEMBER 31, 2016



($ in millions)	Cost/amortized cost		Fair value		Amount at which shown in the Balance Sheet
Type of investment
Fixed maturities:
Bonds:
United States government, government agencies and authorities	$	3,572	$	3,637	$	3,637
States, municipalities and political subdivisions	7,116		7,333		7,333
Foreign governments	1,043		1,075		1,075
Public utilities	5,048		5,322		5,322
All other corporate bonds	37,694		38,279		38,279
Asset-backed securities	1,169		1,171		1,171
Residential mortgage-backed securities	651		728		728
Commercial mortgage-backed securities	262		270		270
Redeemable preferred stocks	21		24		24
Total fixed maturities	56,576		$	57,839	57,839

Equity securities:
Common stocks:
Public utilities	108		$	114	114
Banks, trusts and insurance companies	804		895		895
Industrial, miscellaneous and all other	4,100		4,477		4,477
Nonredeemable preferred stocks	145		180		180
Total equity securities	5,157		$	5,666	5,666

Mortgage loans on real estate	4,486		$	4,514	4,486
Real estate (none acquired in satisfaction of debt)	318				318
Policy loans	904				904
Derivative instruments	106		$	111	111
Limited partnership interests	5,814				5,814
Other long-term investments	2,373				2,373
Short-term investments	4,288		$	4,288	4,288

Total investments	$	80,022			$	81,799

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE II —

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF OPERATIONS



($ in millions)	Year Ended December 31,
	2016			2015			2014
Revenues
Investment income, less investment expense	$	11		$	8		$	3
Realized capital gains and losses	2			—			—
Other income	55			66			67
	68			74			70

Expenses
Interest expense	295			292			321
Loss on extinguishment of debt	—			—			1
Pension and other postretirement benefit expense	10			(15		)	41
Other operating expenses	28			34			38
	333			311			401

Loss from operations before income tax benefit and equity in net income of subsidiaries	(265		)	(237		)	(331		)

Income tax benefit	(115		)	(108		)	(142		)
Loss before equity in net income of subsidiaries	(150		)	(129		)	(189		)

Equity in net income of subsidiaries	2,027			2,300			3,039
Net income	1,877			2,171			2,850

Preferred stock dividends	116			116			104

Net income applicable to common shareholders	1,761			2,055			2,746

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	433			(1,306		)	280
Unrealized foreign currency translation adjustments	10			(58		)	(40		)
Unrecognized pension and other postretirement benefit cost	(104		)	48			(725		)
Other comprehensive income (loss), after-tax	339			(1,316		)	(485		)
Comprehensive income	$	2,216		$	855		$	2,365

See accompanying notes to condensed financial information and notes to consolidated financial statements.

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE II (CONTINUED) —

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF FINANCIAL POSITION



($ in millions, except par value data)	December 31,
	2016			2015
Assets
Investments in subsidiaries	$	26,929		$	25,047
Fixed income securities, at fair value (amortized cost $510 and $485)	513			485
Short-term investments, at fair value (amortized cost $219 and $277)	219			277
Cash	2			4
Receivable from subsidiaries	385			339
Deferred income taxes	348			302
Other assets	138			133
Total assets	$	28,534		$	26,587

Liabilities
Long-term debt	$	6,347		$	5,124
Pension and other postretirement benefit obligations	1,079			948
Deferred compensation	274			259
Dividends payable to shareholders	157			150
Other liabilities	104			81
Total liabilities	7,961			6,562

Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 72.2 thousand issued and outstanding, and $1,805 aggregate liquidation preference	1,746			1,746
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 366 million and 381 million shares outstanding	9			9
Additional capital paid-in	3,303			3,245
Retained income	40,678			39,413
Deferred ESOP expense	(6		)	(13		)
Treasury stock, at cost (534 million and 519 million shares)	(24,741		)	(23,620		)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	1,053			620
Unrealized foreign currency translation adjustments	(50		)	(60		)
Unrealized pension and other postretirement benefit cost	(1,419		)	(1,315		)
Total accumulated other comprehensive loss	(416		)	(755		)
Total shareholders’ equity	20,573			20,025
Total liabilities and shareholders’ equity	$	28,534		$	26,587

See accompanying notes to condensed financial information and notes to consolidated financial statements.

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE II (CONTINUED) —

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF CASH FLOWS



($ in millions)	Year Ended December 31,
	2016			2015			2014
Cash flows from operating activities
Net income	$	1,877		$	2,171		$	2,850
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(2,027		)	(2,300		)	(3,039		)
Dividends received from subsidiaries	1,874			2,300			2,497
Realized capital gains and losses	(2		)	—			—
Loss on extinguishment of debt	—			—			1
Changes in:
Pension and other postretirement benefits	10			(15		)	41
Income taxes	13			77			(158		)
Operating assets and liabilities	43			26			(29		)
Net cash provided by operating activities	1,788			2,259			2,163

Cash flows from investing activities
Proceeds from sales of investments	389			399			351
Investment purchases	(243		)	(4		)	(1,174		)
Investment collections	60			—			155
Return of capital from subsidiaries	(1,500		)	50			1,200
Transfers to subsidiaries through intercompany loan agreement	(30		)	—			—
Change in short-term investments, net	58			397			(88		)
Net cash (used in) provided by investing activities	(1,266		)	842			444

Cash flows from financing activities
Proceeds from issuance of long-term debt	1,236			—			—
Repayment of long-term debt	(17		)	(20		)	(962		)
Proceeds from issuance of preferred stock	—			—			965
Dividends paid on common stock	(486		)	(483		)	(477		)
Dividends paid on preferred stock	(116		)	(116		)	(87		)
Treasury stock purchases	(1,337		)	(2,808		)	(2,301		)
Shares reissued under equity incentive plans, net	164			130			266
Excess tax benefits on share-based payment arrangements	32			45			41
Other	—			—			(2		)
Net cash used in financing activities	(524		)	(3,252		)	(2,557		)

Net (decrease) increase in cash	(2		)	(151		)	50
Cash at beginning of year	4			155			105
Cash at end of year	$	2		$	4		$	155

See accompanying notes to condensed financial information and notes to consolidated financial statements.

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE II (CONTINUED) —

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

NOTES TO CONDENSED FINANCIAL INFORMATION

1. General

The financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8. The long-term debt presented in Note 12 “Capital Structure” are direct obligations of the Registrant. A majority of the pension and other postretirement benefits plans presented in Note 17 “Benefit Plans” are direct obligations of the Registrant.

Participating subsidiaries fund the pension plans contributions under a master services cost sharing agreement. In addition, as a result of joint and several pension liability rules under the Internal Revenue Code and the Employee Retirement Income Security Act of 1974, as amended, many liabilities that arise in connection with pension plans are joint and several across all members of a controlled group of entities.

2. Supplemental Disclosures of Cash Flow Information

The Registrant paid $287 million, $289 million and $332 million of interest on debt in 2016, 2015 and 2014, respectively.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION

12 Months Ended

Dec. 31, 2016

Supplementary Insurance Information [Abstract]

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION



($ in millions)	As of December 31,						For the year ended December 31,
Segment	Deferred policy acquisition costs		Reserves for claims and claims expense, contract benefits and contractholder funds		Unearned premiums		Premium revenue and contract charges		Net investment income ⁽¹⁾		Claims and claims expense, contract benefits and interest credited to contractholders		Amortization of deferred policy acquisition costs		Other operating costs and expenses		Premiums written (excluding life)
2016
Property-Liability operations
Allstate Protection	$	2,188	$	23,297	$	12,571	$	31,307			$	22,116	$	4,267	$	3,607	$	31,597
Discontinued Lines and Coverages	—		1,953		—		—				105		—		2		3
Total Property-Liability	2,188		25,250		12,571		31,307		$	1,266	22,221		4,267		3,609		31,600
Allstate Financial operations	1,766		32,499		12		2,275		1,734		2,583		283		498		855
Corporate and Other	—		—		—		—		42		—		—		324		—
Total	$	3,954	$	57,749	$	12,583	$	33,582	$	3,042	$	24,804	$	4,550	$	4,431	$	32,455
2015
Property-Liability operations
Allstate Protection	$	2,029	$	21,807	$	12,189	$	30,309			$	20,981	$	4,102	$	3,612	$	30,871
Discontinued Lines and Coverages	—		2,062		—		—				53		—		2		—
Total Property-Liability	2,029		23,869		12,189		30,309		$	1,237	21,034		4,102		3,614		30,871
Allstate Financial operations	1,832		33,542		13		2,158		1,884		2,564		262		472		777
Corporate and Other	—		—		—		—		35		—		—		326		—
Total	$	3,861	$	57,411	$	12,202	$	32,467	$	3,156	$	23,598	$	4,364	$	4,412	$	31,648
2014
Property-Liability operations
Allstate Protection	$	1,820	$	20,709	$	11,640	$	28,928			$	19,315	$	3,875	$	3,851	$	29,613
Discontinued Lines and Coverages	—		2,214		—		1				113		—		3		1
Total Property-Liability	1,820		22,923		11,640		28,929		$	1,301	19,428		3,875		3,854		29,614
Allstate Financial operations	1,705		34,909		15		2,157		2,131		2,684		260		468		746
Corporate and Other	—		—		—		—		27		—		—		360		—
Total	$	3,525	$	57,832	$	11,655	$	31,086	$	3,459	$	22,112	$	4,135	$	4,682	$	30,360

________________________


⁽¹⁾	A single investment portfolio supports both Allstate Protection and Discontinued Lines and Coverages segments.

SCHEDULE IV - REINSURANCE

12 Months Ended

Dec. 31, 2016

Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]

SCHEDULE IV - REINSURANCE

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE IV — REINSURANCE



($ in millions)
	Gross amount		Ceded to other companies ⁽¹⁾		Assumed from other companies		Net amount		Percentage of amount assumed to net
Year ended December 31, 2016
Life insurance in force	$	167,355	$	90,011	$	275,008	$	352,352	78.0	%
Premiums and contract charges:
Life insurance	$	877	$	279	$	818	$	1,416	57.8	%
Accident and health insurance	889		30		—		859		—	%
Property-liability insurance	32,249		987		45		31,307		0.1	%
Total premiums and contract charges	$	34,015	$	1,296	$	863	$	33,582	2.6	%
Year ended December 31, 2015
Life insurance in force	$	156,486	$	93,326	$	280,644	$	343,804	81.6	%
Premiums and contract charges:
Life insurance	$	828	$	299	$	849	$	1,378	61.6	%
Accident and health insurance	813		33		—		780		—	%
Property-liability insurance	31,274		1,006		41		30,309		0.1	%
Total premiums and contract charges	$	32,915	$	1,338	$	890	$	32,467	2.7	%
Year ended December 31, 2014
Life insurance in force	$	135,627	$	98,165	$	290,565	$	328,027	88.6	%
Premiums and contract charges:
Life insurance	$	1,144	$	360	$	629	$	1,413	44.5	%
Accident and health insurance	800		56		—		744		—	%
Property-liability insurance	29,914		1,030		45		28,929		0.2	%
Total premiums and contract charges	$	31,858	$	1,446	$	674	$	31,086	2.2	%

______________________________


⁽¹⁾	No reinsurance or coinsurance income was netted against premium ceded in 2016, 2015 or 2014.

SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE V — VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS



($ in millions)			Additions
Description	Balance as of beginning of period		Charged to costs and expenses			Other additions		Deductions		Balance as of end of period
Year ended December 31, 2016
Allowance for reinsurance recoverables	$	80	$	5		$	—	$	1	$	84
Allowance for premium installment receivable	90		107			—		113		84
Allowance for deferred tax assets	—		—			—		—		—
Allowance for estimated losses on mortgage loans	3		—			—		—		3
Year ended December 31, 2015
Allowance for reinsurance recoverables	$	95	$	(15	)	$	—	$	—	$	80
Allowance for premium installment receivable	83		107			—		100		90
Allowance for deferred tax assets	—		—			—		—		—
Allowance for estimated losses on mortgage loans	8		(4		)	—		1		3
Year ended December 31, 2014
Allowance for reinsurance recoverables	$	92	$	3		$	—	$	—	$	95
Allowance for premium installment receivable	77		99			—		93		83
Allowance for deferred tax assets	—		—			—		—		—
Allowance for estimated losses on mortgage loans	21		(5		)	—		8		8

SCHEDULE VI - SUPPLEMENTARY INFORMATION CONCERNING CONSOLIDATED PROPERTY-CASUALTY INSURANCE OPERATIONS

12 Months Ended

Dec. 31, 2016

Supplemental Information for Property, Casualty Insurance Underwriters [Abstract]

SCHEDULE VI - SUPPLEMENTARY INFORMATION CONCERNING CONSOLIDATED PROPERTY-CASUALTY INSURANCE OPERATIONS

THE ALLSTATE CORPORATION AND SUBSIDIARIES

SCHEDULE VI — SUPPLEMENTARY INFORMATION CONCERNING

CONSOLIDATED PROPERTY-CASUALTY INSURANCE OPERATIONS



($ in millions)	As of December 31,
	2016		2015		2014
Deferred policy acquisition costs	$	2,188	$	2,029	$	1,820
Reserves for insurance claims and claims expense	25,250		23,869		22,923
Unearned premiums	12,571		12,189		11,640



	Year Ended December 31,
	2016			2015		2014
Earned premiums	$	31,307		$	30,309	$	28,929
Net investment income	1,266			1,237		1,301
Claims and claims adjustment expense incurred
Current year	22,238			20,953		19,512
Prior years	(17		)	81		(84		)
Amortization of deferred policy acquisition costs	4,267			4,102		3,875
Paid claims and claims adjustment expense	21,132			20,286		19,392
Premiums written	31,600			30,871		29,614

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying consolidated financial statements include the accounts of The Allstate Corporation (the “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. 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.
Investments	Investments Fixed income securities include bonds, asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) 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 and related life and annuity deferred policy acquisition costs (“DAC”), deferred sales inducement costs (“DSI”) and reserves for life-contingent contract benefits, is reflected as a component of accumulated other comprehensive income. Cash received from calls 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 and mutual 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 unpaid 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. Investments in limited partnership interests include interests in private equity funds and co-investments, real estate funds and joint ventures, and other funds. Where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, investments in limited partnership interests are accounted for in accordance with the cost method of accounting; all other investments in limited partnership interests are accounted for in accordance with the equity method of accounting (“EMA”). Short-term investments, including commercial paper, U.S. Treasury bills, money market funds and other short-term investments, are carried at fair value. Other investments primarily consist of bank loans, policy loans, agent loans, real estate and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Policy loans are carried at unpaid principal balances and were $904 million and $905 million as of December 31, 2016 and 2015, respectively. Agent loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances and unamortized deferred fees or costs. Real estate is carried at cost less accumulated depreciation. Derivatives are carried at fair value. Investment income primarily consists of interest, dividends, income from limited partnership interests, rental income from real estate, 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 ABS, RMBS and CMBS is determined considering estimated pay-downs, including prepayments, 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 ABS, RMBS and CMBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is recalculated on a prospective basis. 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, bank loans and agent 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 cost method limited partnership interests is recognized upon receipt of amounts distributed by the partnerships. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ net income, including unrealized gains and losses, and is generally recognized on a three month delay due to the availability of the related financial statements. 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 and agent loans, periodic changes in fair value and settlements of certain derivatives including hedge ineffectiveness and valuation changes in public securities held in certain limited partnerships. Realized capital gains and losses on investment sales are determined on a specific identification basis.
Derivative and embedded derivative financial instruments	Derivative and embedded derivative financial instruments Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate and equity), options (including swaptions), interest rate caps, warrants and rights, foreign currency swaps, foreign currency forwards, certain investment risk transfer reinsurance agreements, 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. 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 subject to bifurcation and derivatives receiving hedge accounting are reported consistently with the host contracts and hedged risks, respectively, within 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 the 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 The change in fair value of hedging instruments used in fair value hedges of investment assets or a portion thereof is reported in net investment income, together with the change in 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 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 mortgage loans or the carrying value of the hedged liability is adjusted for the change in 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 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 income, or the cumulative gain or loss on the derivative needed to offset the cumulative change in 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 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 that 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 income as the hedged risk impacts 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 For derivatives for which hedge accounting is not applied, the income statement effects, including fair value gains and losses and accrued periodic settlements, are reported 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	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 repossess the securities loaned on short notice.
Recognition of premium revenues and contract charges, and related benefits and interest credited	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 $84 million and $90 million as of December 31, 2016 and 2015, respectively. Traditional life insurance products consist principally of products with fixed and guaranteed premiums and benefits, primarily term and whole life insurance products. Voluntary accident and health insurance products are expected to remain in force for an extended period and therefore are primarily classified as long-duration contracts. Premiums from these products are recognized as revenue when due from policyholders. Benefits are reflected in life and annuity contract benefits and recognized over the life of the policy in relation to premiums. 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 primarily 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 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 life and annuities and indexed funding agreements are generally based on a specified interest rate index or an equity index, such as the Standard & Poor’s 500 Index (“S&P 500”). 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	Deferred policy acquisition and sales inducement costs Costs that are related directly to the successful acquisition of new or renewal property-liability insurance, life insurance and investment contracts are deferred and recorded as DAC. These costs are principally agents’ and brokers’ remuneration, premium taxes and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on fixed 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 expenses. 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. DAC associated with property-liability insurance is periodically reviewed for recoverability and adjusted if necessary. 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 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. For traditional life and voluntary accident and health 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. The Company periodically reviews the recoverability of DAC for these policies on an aggregate basis using actual experience. The Company aggregates traditional life insurance products and immediate annuities with life contingencies in one analysis, and voluntary accident and health insurance in a separate analysis. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. For interest-sensitive life insurance and fixed annuities, 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 and DSI amortization is reestimated and adjusted by a cumulative charge or credit to income 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 primarily consist 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 mortality, persistency, expenses, investment returns, including capital gains and losses on assets supporting contract liabilities, interest crediting rates to contractholders, and the effects of any hedges. 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. The Company performs quarterly reviews of DAC and DSI recoverability for interest-sensitive life and fixed annuity contracts in the aggregate using current assumptions. If a change in the amount of EGP is significant, it could result in the unamortized DAC or DSI not being recoverable, resulting in a charge which is included as a component of amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively. The DAC and DSI balances presented include adjustments to reflect the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized capital gains or losses in the respective product investment portfolios were actually realized. The adjustments are recorded net of tax in accumulated other comprehensive income. DAC, DSI and deferred income taxes determined on unrealized capital gains and losses and reported in accumulated other comprehensive income recognize the impact on shareholders’ equity consistently with the amounts that would be recognized in the income statement on realized capital gains and losses. Customers of the Company may exchange one insurance policy or investment contract for another offered by the Company, or make modifications to an existing investment, life or property-liability contract issued by the Company. These transactions are identified as internal replacements for accounting purposes. Internal replacement transactions determined to result in replacement contracts that are substantially unchanged from the replaced contracts are accounted for as continuations of the replaced contracts. Unamortized DAC and DSI related to the replaced contracts continue to be deferred and amortized in connection with the replacement contracts. For interest-sensitive life and investment contracts, the EGP of the replacement contracts are treated as a revision to the EGP of the replaced contracts in the determination of amortization of DAC and DSI. For traditional life and property-liability insurance policies, any changes to unamortized DAC that result from replacement contracts are treated as prospective revisions. Any costs associated with the issuance of replacement contracts are characterized as maintenance costs and expensed as incurred. Internal replacement transactions determined to result in a substantial change to the replaced contracts are accounted for as an extinguishment of the replaced contracts, and any unamortized DAC and DSI related to the replaced contracts are eliminated with a corresponding charge to amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively. The costs assigned to the right to receive future cash flows from certain business purchased from other insurers are also classified as DAC in the Consolidated Statements of Financial Position. The costs capitalized represent the present value of future profits expected to be earned over the lives of the contracts acquired. These costs are amortized as profits emerge over the lives of the acquired business and are periodically evaluated for recoverability.
Reinsurance	Reinsurance In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. The Company also participates in various reinsurance mechanisms, including industry pools and facilities, which are backed by the financial resources of the property-liability insurance company market participants. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverables. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. For catastrophe coverage, the cost of reinsurance premiums is recognized ratably over the contract period to the extent coverage remains available. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers, including their activities with respect to claim settlement practices and commutations, and establishes allowances for uncollectible reinsurance as appropriate.
Goodwill	Goodwill Goodwill represents the excess of amounts paid for acquiring businesses over the fair value of the net assets acquired. The goodwill balances were $823 million and $396 million as of both December 31, 2016 and December 31, 2015 for the Allstate Protection segment and the Allstate Financial segment, respectively. The Company’s reporting units are equivalent to its reporting segments, Allstate Protection and Allstate Financial. Goodwill is allocated to reporting units based on which unit is expected to benefit from the synergies of the business combination. Goodwill is not amortized but is tested for impairment at least annually. The Company performs its annual goodwill impairment testing during the fourth quarter of each year based upon data as of the close of the third quarter. The Company also reviews goodwill for impairment whenever events or changes in circumstances, such as deteriorating or adverse market conditions, indicate that it is more likely than not that the carrying amount of goodwill may exceed its implied fair value. To estimate the fair value of its reporting units, the Company may utilize a combination of widely accepted valuation techniques including a stock price and market capitalization analysis, discounted cash flow calculations and peer company price to earnings multiples analysis. The stock price and market capitalization analysis takes into consideration the quoted market price of the Company’s outstanding common stock and includes a control premium, derived from historical insurance industry acquisition activity, in determining the estimated fair value of the consolidated entity before allocating that fair value to individual reporting units. The discounted cash flow analysis utilizes long term assumptions for revenue growth, capital growth, earnings projections including those used in the Company’s strategic plan, and an appropriate discount rate. The peer company price to earnings multiples analysis takes into consideration the price to earnings multiples of peer companies for each reporting unit and estimated income from the Company’s strategic plan.
Property and equipment	Property and equipment Property and equipment is carried at cost less accumulated depreciation. Included in property and equipment are capitalized costs related to computer software licenses and software developed for internal use. These costs generally consist of certain external payroll and payroll related costs. Property and equipment depreciation is calculated using the straight-line method over the estimated useful lives of the assets, generally 3 to 10 years for equipment and 40 years for real property. Depreciation expense is reported in operating costs and expenses. Accumulated depreciation on property and equipment was $2.16 billion and $2.09 billion as of December 31, 2016 and 2015, respectively. Depreciation expense on property and equipment was $267 million, $255 million and $228 million in 2016, 2015 and 2014, respectively. The Company reviews its property and equipment for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Income taxes	Income taxes The income tax provision is calculated under the liability method. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are DAC, unearned premiums, unrealized capital gains and losses and insurance reserves. A deferred tax asset valuation allowance is established when there is uncertainty that such assets will be realized.
Reserves for property-liability insurance claims and claims expense and life-contingent contract benefits	Reserve for property-liability insurance claims and claims expense The reserve for property-liability insurance claims and claims expense is the estimate of amounts necessary to settle all reported and unreported claims for the ultimate cost of insured property-liability losses, based upon the facts of each case and the Company’s experience with similar cases. Estimated amounts of salvage and subrogation are deducted from the reserve for claims and claims expense. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserve estimates are primarily derived using an actuarial estimation process in which historical loss patterns are applied to actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an accident or report year to create an estimate of how losses are likely to develop over time. Development factors are calculated quarterly and periodically throughout the year for data elements such as claims reported and settled, paid losses, and paid losses combined with case reserves. The historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims. Reserve estimates are regularly reviewed and updated, using the most current information available. Any resulting reestimates are reflected in current results of operations. Reserve for life-contingent contract benefits The reserve for life-contingent contract benefits payable under insurance policies, including traditional life insurance, life-contingent immediate annuities and voluntary accident and health insurance products, is computed on the basis of long-term actuarial assumptions of future investment yields, mortality, morbidity, policy terminations and expenses. These assumptions, which for traditional life insurance are applied using the net level premium method, include provisions for adverse deviation and generally vary by characteristics such as type of coverage, year of issue and policy duration. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. The Company also reviews these policies on an aggregate basis for circumstances where projected profits would be recognized in early years followed by projected losses in later years. If this circumstance exists, the Company will accrue a liability, during the period of profits, to offset the losses at such time as the future losses are expected to commence using a method updated prospectively over time. To the extent that unrealized gains on fixed income securities would result in a premium deficiency if those gains were realized, the related increase in reserves for certain immediate annuities with life contingencies is recorded net of tax as a reduction of unrealized net capital gains included in accumulated other comprehensive income.
Contractholder funds	Contractholder funds Contractholder funds represent interest-bearing liabilities arising from the sale of products such as interest-sensitive life insurance, fixed annuities and funding agreements. Contractholder funds primarily comprise cumulative deposits received and interest credited to the contractholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Contractholder funds also include reserves for secondary guarantees on interest-sensitive life insurance and certain fixed annuity contracts and reserves for certain guarantees on reinsured variable annuity contracts.
Separate accounts	Separate accounts Separate accounts assets are carried at fair value. The assets of the separate accounts are legally segregated and available only to settle separate accounts contract obligations. Separate accounts liabilities represent the contractholders’ claims to the related assets and are carried at an amount equal to the separate accounts assets. Investment income and realized capital gains and losses of the separate accounts accrue directly to the contractholders and therefore are not included in the Company’s Consolidated Statements of Operations. Deposits to and surrenders and withdrawals from the separate accounts are reflected in separate accounts liabilities and are not included in consolidated cash flows. Absent any contract provision wherein the Company provides a guarantee, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. Substantially all of the Company’s variable annuity business was reinsured beginning in 2006.
Deferred Employee Stock Ownership Plan ("ESOP") expense	Deferred Employee Stock Ownership Plan (“ESOP”) expense Deferred ESOP expense represents the remaining unrecognized cost of shares acquired by the Allstate ESOP to pre-fund a portion of the Company’s contribution to the Allstate 401(k) Savings Plan.
Equity incentive plans	Equity incentive plans The Company has equity incentive plans under which the Company grants nonqualified stock options, restricted stock units and performance stock awards (“equity awards”) to certain employees and directors of the Company. The Company measures the fair value of equity awards at the award date and recognizes the expense over the shorter of the period in which the requisite service is rendered or retirement eligibility is attained. The expense for performance stock awards is adjusted each period to reflect the performance factor most likely to be achieved at the end of the performance period. The Company uses a binomial lattice model to determine the fair value of employee stock options.
Off-balance sheet financial instruments	Off-balance sheet financial instruments Commitments to invest, commitments to purchase private placement securities, commitments to extend loans, financial guarantees and credit guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Consolidated Statements of Financial Position (see Note 7 and Note 14).
Consolidation of variable interest entities ("VIEs")	Consolidation of variable interest entities (“VIEs”) The Company consolidates VIEs when it is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE.
Foreign currency translation	Foreign currency translation The local currency of the Company’s foreign subsidiaries is deemed to be the functional currency of the country in which these subsidiaries operate. The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect at the end of a reporting period for assets and liabilities and at average exchange rates during the period for results of operations. The unrealized gains and losses from the translation of the net assets are recorded as unrealized foreign currency translation adjustments and included in accumulated other comprehensive income. Changes in unrealized foreign currency translation adjustments are included in other comprehensive income. Gains and losses from foreign currency transactions are reported in operating costs and expenses and have not been material.
Earnings per common share	Earnings per common share Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units and contingently issuable performance stock awards.
Accounting standards	Adopted accounting standards Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies that a performance target that affects vesting and could be achieved after the requisite service period should be treated as a performance condition and not reflected in estimating the grant-date fair value of the award. Compensation costs should reflect the amount attributable to the periods for which the requisite service has been rendered. Total compensation expense recognized during and after the requisite service period (which may differ from the vesting period) should reflect the number of awards that are expected to vest and should be adjusted to reflect the number of awards that ultimately vest. The Company’s existing accounting policy for performance targets that affect the vesting of share-based payment awards was consistent with the new guidance and as such the adoption as of January 1, 2016 had no impact on the Company’s results of operations or financial position. Amendments to the Consolidation Analysis In February 2015, the FASB issued guidance affecting the consolidation evaluation for limited partnerships and similar entities, fees paid to a decision maker or service provider, and variable interests in a variable interest entity held by related parties of the reporting enterprise. The adoption of this guidance as of January 1, 2016 did not have a material impact on the Company’s results of operations or financial position. Disclosures about Short-Duration Contracts In May 2015, the FASB issued guidance requiring expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity’s significant estimates made in measuring the liability for unpaid claims and claim adjustment expenses. The disclosures include information about incurred and paid claims development by accident year, on a net basis after reinsurance, for the number of years claims incurred typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, the incidence of claims including the methodology used to determine the incidence of claims, and claim duration. The guidance is effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and is to be applied retrospectively. The new guidance affects disclosures only and therefore, the adoption as of December 31, 2016 had no impact on the Company’s results of operations or financial position. Pending accounting standards Revenue from Contracts with Customers In May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Insurance contracts are excluded from the scope of the new guidance. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance is effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued guidance requiring equity investments, including equity securities and limited partnership interests, that are not accounted for under the equity method of accounting or result in consolidation to be measured at fair value with changes in fair value recognized in net income. Equity investments without readily determinable fair values may be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. When a qualitative assessment of equity investments without readily determinable fair values indicates that impairment exists, the carrying value is required to be adjusted to fair value, if lower. The guidance clarifies that an entity should evaluate the realizability of a deferred tax asset related to available-for-sale fixed income securities in combination with the entity’s other deferred tax assets. The guidance also changes certain disclosure requirements. The guidance is effective for interim and annual periods beginning after December 15, 2017, and is to be applied through a cumulative-effect adjustment to beginning retained income as of the beginning of the period of adoption. The new guidance related to equity investments without readily determinable fair values is to be applied prospectively as of the date of adoption. The Company is in the process of evaluating the impact of adoption. The most significant impacts, using values as of December 31, 2016, are expected to be the change in accounting for equity securities where $509 million of pre-tax unrealized net capital gains would be reclassified from accumulated other comprehensive income to retained income and cost method limited partnership interests (excluding limited partnership interests accounted for on a cost recovery basis) where the carrying value would increase by approximately $178 million, pre-tax, with the adjustment recorded in retained income. Accounting for Leases In February 2016, the FASB issued guidance that revises the accounting for leases. Under the new guidance, lessees will be required to recognize a right-of-use asset and lease liability for all leases other than those that meet the definition of a short-term lease. The lease liability will be equal to the present value of lease payments. A right-of-use asset will be based on the lease liability adjusted for qualifying initial direct costs. The expense of operating leases under the new guidance will be recognized in the income statement on a straight-line basis after combining the lease expense components (interest expense on the lease liability and amortization of the right-of-use asset) over the term of the lease. For finance leases, the expense components are computed separately and produce greater up-front expense compared to operating leases as interest expense on the lease liability is higher in early years and the right-of-use asset is amortized on a straight-line basis consistent with operating leases. Lease classification will be based on criteria similar to those currently applied. The accounting model for lessors will be similar to the current model with modifications to reflect definition changes for components such as initial direct costs. Lessors will continue to classify leases as operating, direct financing, or sales-type. The guidance is effective for reporting periods beginning after December 15, 2018 using a modified retrospective approach applied at the beginning of the earliest period presented. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Employee Share-Based Payment Accounting In March 2016, the FASB issued guidance to amend the accounting for share-based payments. Under the new guidance, reporting entities will be required to recognize all tax effects related to share-based payments at settlement (or expiration) through the income statement and will no longer be permitted to recognize excess tax benefits and tax deficiencies in additional paid in capital. The change will be applied on a modified retrospective basis, with a cumulative effect adjustment to beginning retained income. In addition, all tax-related cash flows resulting from share-based payments will be reported as operating activities on the statement of cash flows, with either prospective or retrospective transition permitted. The new guidance will permit employers to withhold shares upon settlement of an award to satisfy the employer’s tax withholding requirement (up to the employee’s maximum individual statutory tax rate) without causing liability classification of the award. The new guidance clarifies that all cash payments made to taxing authorities on an employee’s behalf for withheld shares should be presented as financing activities on the statement of cash flows. Also under the new guidance, reporting entities are permitted to make an accounting policy election to estimate forfeitures or recognize them when they occur. If elected, the change to recognize forfeitures when they occur must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The new guidance is effective for reporting periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Transition to Equity Method Accounting In March 2016, the FASB issued guidance amending the accounting requirements for transitioning to the equity method of accounting (“EMA”), including a transition from the cost method. The guidance requires the cost of acquiring an additional interest in an investee to be added to the existing carrying value to establish the initial basis of the EMA investment. Under the new guidance, no retroactive adjustment is required when an investment initially qualifies for EMA treatment. The guidance is effective for interim and annual periods beginning after December 15, 2016, and is to be applied prospectively. The guidance will principally affect the future accounting for investments that qualify for EMA after application of the cost method of accounting. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for the reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The reporting entity must consider all available relevant information when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the contractual life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through an allowance and not as a direct write-down. The guidance is effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The Company is in the process of evaluating the impact of adoption. Goodwill Impairment In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment that removes the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. Under the new guidance, goodwill impairment will be measured and recognized as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect the reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether it is necessary to perform the quantitative goodwill impairment test. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The guidance is to be applied on a prospective basis, with the effects, if any, recognized in net income in the period of adoption. The impact to the Company upon adoption is dependent upon the excess, if any, of carrying value of the Company’s reporting units over their respective fair values, a measure that is not currently determinable.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Computation of basic and diluted earnings per common share

The computation of basic and diluted earnings per common share for the years ended December 31 is presented in the following table.



($ in millions, except per share data)	2016		2015		2014
Numerator:
Net income	$	1,877	$	2,171	$	2,850
Less: Preferred stock dividends	116		116		104
Net income applicable to common shareholders⁽¹⁾	$	1,761	$	2,055	$	2,746

Denominator:
Weighted average common shares outstanding	372.8		401.1		431.4
Effect of dilutive potential common shares:
Stock options	3.2		4.0		4.7
Restricted stock units (non-participating) and performance stock awards	1.3		1.7		2.1
Weighted average common and dilutive potential common shares outstanding	377.3		406.8		438.2

Earnings per common share – Basic	$	4.72	$	5.12	$	6.37
Earnings per common share – Diluted	$	4.67	$	5.05	$	6.27

_____________________________


⁽¹⁾	Net income applicable to common shareholders is net income less preferred stock dividends.

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information from collateralized securities received

The accompanying cash flows are included in cash flows from operating activities in the Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Net change in proceeds managed
Net change in fixed income securities	$	(584	)	$	—		$	—
Net change in short-term investments	295			(59		)	(167		)
Operating cash flow used	(289		)	(59		)	(167		)
Net change in cash	—			1			9
Net change in proceeds managed	$	(289	)	$	(58	)	$	(158	)

Net change in liabilities
Liabilities for collateral, beginning of year	$	(840	)	$	(782	)	$	(624	)
Liabilities for collateral, end of year	(1,129		)	(840		)	(782		)
Operating cash flow provided	$	289		$	58		$	158

Investments (Tables)

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:



($ in millions)	Amortized cost		Gross unrealized					Fair value
	Amortized cost		Gains		Losses			Fair value
December 31, 2016
U.S. government and agencies	$	3,572	$	74	$	(9	)	$	3,637
Municipal	7,116		304		(87		)	7,333
Corporate	42,742		1,178		(319		)	43,601
Foreign government	1,043		36		(4		)	1,075
ABS	1,169		13		(11		)	1,171
RMBS	651		85		(8		)	728
CMBS	262		17		(9		)	270
Redeemable preferred stock	21		3		—			24
Total fixed income securities	$	56,576	$	1,710	$	(447	)	$	57,839

December 31, 2015
U.S. government and agencies	$	3,836	$	90	$	(4	)	$	3,922
Municipal	7,032		389		(20		)	7,401
Corporate	41,674		1,032		(879		)	41,827
Foreign government	983		50		—			1,033
ABS	2,359		11		(43		)	2,327
RMBS	857		100		(10		)	947
CMBS	438		32		(4		)	466
Redeemable preferred stock	22		3		—			25
Total fixed income securities	$	57,201	$	1,707	$	(960	)	$	57,948

Schedule for fixed income securities based on contractual maturities

The scheduled maturities for fixed income securities are as follows as of December 31, 2016:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	4,873	$	4,898
Due after one year through five years	27,836		28,307
Due after five years through ten years	16,448		16,612
Due after ten years	5,337		5,853
	54,494		55,670
ABS, RMBS and CMBS	2,082		2,169
Total	$	56,576	$	57,839

Schedule of net investment income

Net investment income for the years ended December 31 is as follows:



($ in millions)	2016			2015			2014
Fixed income securities	$	2,060		$	2,218		$	2,447
Equity securities	137			110			117
Mortgage loans	217			228			265
Limited partnership interests	561			549			614
Short-term investments	16			9			7
Other	222			192			170
Investment income, before expense	3,213			3,306			3,620
Investment expense	(171		)	(150		)	(161		)
Net investment income	$	3,042		$	3,156		$	3,459

Schedule of realized capital gains and losses by asset type

Realized capital gains and losses by asset type for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Fixed income securities	$	(91	)	$	212		$	130
Equity securities	23			(50		)	582
Mortgage loans	—			6			2
Limited partnership interests	(21		)	(93		)	13
Derivatives	3			(21		)	(38		)
Other	(4		)	(24		)	5
Realized capital gains and losses	$	(90	)	$	30		$	694

Schedule of realized capital gains and losses by transaction type

Realized capital gains and losses by transaction type for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Impairment write-downs	$	(234	)	$	(195	)	$	(32	)
Change in intent write-downs	(69		)	(221		)	(213		)
Net other-than-temporary impairment losses recognized in earnings	(303		)	(416		)	(245		)
Sales and other	213			470			975
Valuation and settlements of derivative instruments	—			(24		)	(36		)
Realized capital gains and losses	$	(90	)	$	30		$	694

Schedule of other-than-temporary impairment losses by asset type

Other-than-temporary impairment losses by asset type for the years ended December 31 are as follows:



($ in millions)	2016									2015									2014
	Gross			Included in OCI			Net			Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	—		$	—		$	—		$	(17	)	$	4		$	(13	)	$	(10	)	$	—		$	(10	)
Corporate	(33		)	9			(24		)	(61		)	11			(50		)	(7		)	—			(7		)
ABS	(6		)	—			(6		)	(33		)	22			(11		)	(12		)	1			(11		)
RMBS	—			(1		)	(1		)	1			(1		)	—			6			(4		)	2
CMBS	(15		)	2			(13		)	(1		)	—			(1		)	(1		)	—			(1		)
Total fixed income securities	(54		)	10			(44		)	(111		)	36			(75		)	(24		)	(3		)	(27		)
Equity securities	(194		)	—			(194		)	(279		)	—			(279		)	(196		)	—			(196		)
Mortgage loans	—			—			—			4			—			4			5			—			5
Limited partnership interests	(56		)	—			(56		)	(51		)	—			(51		)	(27		)	—			(27		)
Other	(9		)	—			(9		)	(15		)	—			(15		)	—			—			—
Other-than-temporary impairment losses	$	(313	)	$	10		$	(303	)	$	(452	)	$	36		$	(416	)	$	(242	)	$	(3	)	$	(245	)

Schedule of other-than-temporary impairment losses on fixed income securities included in Accumulated Other Comprehensive Income



($ in millions)	December 31, 2016			December 31, 2015
Municipal	$	(8	)	$	(9	)
Corporate	(7		)	(7		)
ABS	(21		)	(23		)
RMBS	(90		)	(102		)
CMBS	(7		)	(6		)
Total	$	(133	)	$	(147	)

Schedule of credit losses on fixed income securities recognized in earnings

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of December 31 are as follows:



($ in millions)	2016			2015			2014
Beginning balance	$	(392	)	$	(380	)	$	(513	)
Additional credit loss for securities previously other-than-temporarily impaired	(21		)	(30		)	(6		)
Additional credit loss for securities not previously other-than-temporarily impaired	(23		)	(45		)	(18		)
Reduction in credit loss for securities disposed or collected	117			60			95
Change in credit loss due to accretion of increase in cash flows	1			3			3
Reduction in credit loss for securities sold in LBL disposition	—			—			59
Ending balance	$	(318	)	$	(392	)	$	(380	)

Schedule of unrealized net capital gains and losses

Unrealized net capital gains and losses included in accumulated other comprehensive income are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2016			Gains		Losses
Fixed income securities	$	57,839	$	1,710	$	(447	)	$	1,263
Equity securities	5,666		594		(85		)	509
Short-term investments	4,288		—		—			—
Derivative instruments ⁽¹⁾	5		5		(3		)	2
EMA limited partnerships ⁽²⁾								(4		)
Unrealized net capital gains and losses, pre-tax								1,770
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(146		)
Amounts recognized								(146		)
Deferred income taxes								(571		)
Unrealized net capital gains and losses, after-tax								$	1,053

______________________________


⁽¹⁾	Included in the fair value of derivative instruments is $5 million classified as assets.


⁽²⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.

⁽³⁾


⁽⁴⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2015			Gains		Losses
Fixed income securities	$	57,948	$	1,707	$	(960	)	$	747
Equity securities	5,082		415		(139		)	276
Short-term investments	2,122		—		—			—
Derivative instruments ⁽¹⁾	10		10		(4		)	6
EMA limited partnerships								(4		)
Unrealized net capital gains and losses, pre-tax								1,025
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(67		)
Amounts recognized								(67		)
Deferred income taxes								(338		)
Unrealized net capital gains and losses, after-tax								$	620

______________________________


⁽¹⁾	Included in the fair value of derivative instruments are $6 million classified as assets and $(4) million classified as liabilities.

Schedule of change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the years ended December 31 is as follows:



($ in millions)	2016			2015			2014
Fixed income securities	$	516		$	(2,021	)	$	866
Equity securities	233			(136		)	(212		)
Derivative instruments	(4		)	8			16
EMA limited partnerships	—			1			(2		)
Investments classified as held for sale	—			—			(190		)
Total	745			(2,148		)	478
Amounts recognized for:
Insurance reserves	—			28			(28		)
DAC and DSI	(79		)	112			(21		)
Amounts recognized	(79		)	140			(49		)
Deferred income taxes	(233		)	702			(149		)
Increase (decrease) in unrealized net capital gains and losses, after-tax	$	433		$	(1,306	)	$	280

Schedule of gross unrealized losses and fair value of available for sale securities by length of time



($ in millions)	Less than 12 months						12 months or more
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
December 31, 2016
Fixed income securities
U.S. government and agencies	46	$	943	$	(9	)	—	$	—	$	—		$	(9	)
Municipal	1,310	3,073		(76		)	8	29		(11		)	(87		)
Corporate	862	13,343		(256		)	83	678		(63		)	(319		)
Foreign government	41	225		(4		)	—	—		—			(4		)
ABS	31	222		(1		)	14	109		(10		)	(11		)
RMBS	89	53		(1		)	179	91		(7		)	(8		)
CMBS	15	59		(4		)	4	15		(5		)	(9		)
Redeemable preferred stock	1	—		—			—	—		—			—
Total fixed income securities	2,395	17,918		(351		)	288	922		(96		)	(447		)
Equity securities	195	654		(56		)	46	165		(29		)	(85		)
Total fixed income and equity securities	2,590	$	18,572	$	(407	)	334	$	1,087	$	(125	)	$	(532	)
Investment grade fixed income securities	2,202	$	15,678	$	(293	)	201	$	493	$	(51	)	$	(344	)
Below investment grade fixed income securities	193	2,240		(58		)	87	429		(45		)	(103		)
Total fixed income securities	2,395	$	17,918	$	(351	)	288	$	922	$	(96	)	$	(447	)

December 31, 2015
Fixed income securities
U.S. government and agencies	53	$	1,874	$	(4	)	—	$	—	$	—		$	(4	)
Municipal	222	810		(6		)	9	36		(14		)	(20		)
Corporate	1,361	17,915		(696		)	111	1,024		(183		)	(879		)
Foreign government	9	44		—			—	—		—			—
ABS	133	1,733		(24		)	20	324		(19		)	(43		)
RMBS	88	69		—			176	125		(10		)	(10		)
CMBS	13	75		(2		)	1	2		(2		)	(4		)
Total fixed income securities	1,879	22,520		(732		)	317	1,511		(228		)	(960		)
Equity securities	265	1,397		(107		)	37	143		(32		)	(139		)
Total fixed income and equity securities	2,144	$	23,917	$	(839	)	354	$	1,654	$	(260	)	$	(1,099	)
Investment grade fixed income securities	1,405	$	17,521	$	(362	)	225	$	972	$	(105	)	$	(467	)
Below investment grade fixed income securities	474	4,999		(370		)	92	539		(123		)	(493		)
Total fixed income securities	1,879	$	22,520	$	(732	)	317	$	1,511	$	(228	)	$	(960	)

Principal geographic distribution of commercial real estate represented in the mortgage portfolio



(% of mortgage loan portfolio carrying value)	2016		2015
California	19.3	%	21.3	%
Texas	10.5		9.7
New Jersey	8.2		8.7
Illinois	6.7		7.1
Florida	5.4		5.3

Types of property collateralizing the mortgage loans

The types of properties collateralizing the mortgage loans as of December 31 are as follows:



(% of mortgage loan portfolio carrying value)	2016		2015
Apartment complex	27.6	%	26.4	%
Office buildings	23.9		22.7
Retail	20.4		21.3
Warehouse	17.0		18.4
Other	11.1		11.2
Total	100.0	%	100.0	%

Contractual maturities of the commercial mortgage loan portfolio

The contractual maturities of the mortgage loan portfolio as of December 31, 2016 are as follows:



($ in millions)	Number of loans	Carrying value		Percent
2017	28	$	295	6.6	%
2018	29	336		7.5
2019	10	267		6.0
2020	14	190		4.2
Thereafter	222	3,398		75.7
Total	303	$	4,486	100.0	%

Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution

The following table reflects the carrying value of non-impaired fixed rate and variable rate mortgage loans summarized by debt service coverage ratio distribution as of December 31:



($ in millions)	2016						2015
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	60	$	—	$	60	$	64	$	—	$	64
1.0 - 1.25	324		—		324		382		—		382
1.26 - 1.50	1,293		—		1,293		1,219		—		1,219
Above 1.50	2,765		39		2,804		2,667		—		2,667
Total non-impaired mortgage loans	$	4,442	$	39	$	4,481	$	4,332	$	—	$	4,332

Net carrying value of impaired mortgage loans

The net carrying value of impaired mortgage loans as of December 31 is as follows:



($ in millions)	2016		2015
Impaired mortgage loans with a valuation allowance	$	5	$	6
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	5	$	6
Valuation allowance on impaired mortgage loans	$	3	$	3

Valuation allowance on impaired mortgage loans

The rollforward of the valuation allowance on impaired mortgage loans for the years ended December 31 is as follows:



($ in millions)	2016		2015			2014
Beginning balance	$	3	$	8		$	21
Net decrease in valuation allowance	—		(4		)	(5		)
Charge offs	—		(1		)	(8		)
Ending balance	$	3	$	3		$	8

Principal geographic distribution of municipal bond

The following table shows the principal geographic distribution of municipal bond issuers represented in the Company’s portfolio as of December 31. No other state represents more than 5% of the portfolio.



(% of municipal bond portfolio carrying value)	2016		2015
Texas	10.0	%	9.2	%
California	7.2		6.3
New York	6.8		7.7
Florida	5.7		5.6
Washington	5.6		5.6
Michigan	5.4		3.9

Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities that are measured at fair value on a recurring and non-recurring basis

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2016.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	2,918		$	719		$	—					$	3,637
Municipal	—			7,208			125						7,333
Corporate - public	—			31,414			78						31,492
Corporate - privately placed	—			11,846			263						12,109
Foreign government	—			1,075			—						1,075
ABS - CDO	—			650			27						677
ABS - consumer and other	—			452			42						494
RMBS	—			727			1						728
CMBS	—			248			22						270
Redeemable preferred stock	—			24			—						24
Total fixed income securities	2,918			54,363			558						57,839
Equity securities	5,247			256			163						5,666
Short-term investments	850			3,423			15						4,288
Other investments: Free-standing derivatives	—			119			1			$	(9	)	111
Separate account assets	3,393			—			—						3,393
Other assets	—			—			1						1
Total recurring basis assets	12,408			58,161			738			(9		)	71,298
Non-recurring basis ⁽¹⁾	—			—			24						24
Total assets at fair value	$	12,408		$	58,161		$	762		$	(9	)	$	71,322
% of total assets at fair value	17.4		%	81.5		%	1.1		%	—		%	100.0		%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(290	)				$	(290	)
Other liabilities: Free-standing derivatives	(1		)	(68		)	(3		)	$	28		(44		)
Total liabilities at fair value	$	(1	)	$	(68	)	$	(293	)	$	28		$	(334	)
% of total liabilities at fair value	0.3		%	20.4		%	87.7		%	(8.4		)%	100.0		%

______________________________


⁽¹⁾	Includes $24 million of limited partnership interests written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2015:



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	3,056		$	861		$	5					$	3,922
Municipal	—			7,240			161						7,401
Corporate - public	—			30,356			46						30,402
Corporate - privately placed	—			10,923			502						11,425
Foreign government	—			1,033			—						1,033
ABS - CDO	—			716			61						777
ABS - consumer and other	—			1,500			50						1,550
RMBS	—			946			1						947
CMBS	—			446			20						466
Redeemable preferred stock	—			25			—						25
Total fixed income securities	3,056			54,046			846						57,948
Equity securities	4,786			163			133						5,082
Short-term investments	615			1,507			—						2,122
Other investments: Free-standing derivatives	—			65			1			$	(13	)	53
Separate account assets	3,658			—			—						3,658
Other assets	2			—			1						3
Total recurring basis assets	12,117			55,781			981			(13		)	68,866
Non-recurring basis ⁽¹⁾	—			—			55						55
Total assets at fair value	$	12,117		$	55,781		$	1,036		$	(13	)	$	68,921
% of total assets at fair value	17.6		%	80.9		%	1.5		%	—		%	100.0		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(299	)				$	(299	)
Other liabilities: Free-standing derivatives	(1		)	(23		)	(8		)	$	7		(25		)
Total liabilities at fair value	$	(1	)	$	(23	)	$	(307	)	$	7		$	(324	)
% of total liabilities at fair value	0.3		%	7.1		%	94.8		%	(2.2		)%	100.0		%

______________________________


⁽¹⁾	Includes $42 million of limited partnership interests and $13 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

Summary of quantitative information about the significant unobservable inputs

The following table summarizes quantitative information about the significant unobservable inputs used in Level 3 fair value measurements.



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
December 31, 2016
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(247	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.75%

December 31, 2015
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(247	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.76%

Schedule of the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2015			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	5		$	—		$	—		$	—		$	(4	)
Municipal	161			12			(10		)	6			(23		)
Corporate - public	46			—			—			41			(43		)
Corporate - privately placed	502			15			18			16			(398		)
ABS - CDO	61			1			6			10			(43		)
ABS - consumer and other	50			—			(3		)	3			(35		)
RMBS	1			1			—			—			—
CMBS	20			—			—			—			(1		)
Total fixed income securities	846			29			11			76			(547		)
Equity securities	133			(32		)	12			—			(12		)
Short-term investments	—			—			—			—			—
Free-standing derivatives, net	(7		)	6			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	973		$	3		$	23		$	76		$	(559	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(299	)	$	5		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(299	)	$	5		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of December 31, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	—
Municipal	22			(40		)	—			(3		)	125
Corporate - public	47			(11		)	—			(2		)	78
Corporate - privately placed	181			(15		)	—			(56		)	263
ABS - CDO	40			(3		)	—			(45		)	27
ABS - consumer and other	35			(5		)	—			(3		)	42
RMBS	—			(1		)	—			—			1
CMBS	5			—			—			(2		)	22
Total fixed income securities	330			(75		)	—			(112		)	558
Equity securities	65			(4		)	—			1			163
Short-term investments	15			—			—			—			15
Free-standing derivatives, net	—			—			—			(1		)	(2		)	⁽²	⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	410		$	(79	)	$	—		$	(112	)	$	735
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(3	)	$	7		$	(290	)
Total recurring Level 3 liabilities	$	—		$	—		$	(3	)	$	7		$	(290	)

______________________________


⁽¹⁾	The effect to net income totals $8 million and is reported in the Consolidated Statements of Operations as follows: $(9) million in realized capital gains and losses, $12 million in net investment income, $(4) million in interest credited to contractholder funds and $9 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $3 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2015.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2014			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	6		$	—		$	—		$	—		$	—
Municipal	270			(4		)	(7		)	3			(2		)
Corporate - public	214			—			—			—			(175		)
Corporate - privately placed	677			13			(20		)	13			(106		)
ABS - CDO	104			(1		)	4			43			(52		)
ABS - consumer and other	92			(1		)	—			—			(98		)
RMBS	1			—			—			—			—
CMBS	23			—			—			—			—
Total fixed income securities	1,387			7			(23		)	59			(433		)
Equity securities	83			(3		)	(5		)	—			—
Short-term investments	5			—			—			—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,469		$	5		$	(28	)	$	59		$	(433	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(323	)	$	19		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(323	)	$	19		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of December 31, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	5
Municipal	—			(91		)	—			(8		)	161
Corporate - public	11			—			—			(4		)	46
Corporate - privately placed	79			(74		)	—			(80		)	502
ABS - CDO	—			(2		)	—			(35		)	61
ABS - consumer and other	70			(5		)	—			(8		)	50
RMBS	—			—			—			—			1
CMBS	12			—			—			(15		)	20
Total fixed income securities	172			(172		)	—			(151		)	846
Equity securities	69			(11		)	—			—			133
Short-term investments	35			(40		)	—			—			—
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	276		$	(223	)	$	—		$	(152	)	$	973
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(2	)	$	7		$	(299	)
Total recurring Level 3 liabilities	$	—		$	—		$	(2	)	$	7		$	(299	)

______________________________


⁽¹⁾	The effect to net income totals $24 million and is reported in the Consolidated Statements of Operations as follows: $(8) million in realized capital gains and losses, $13 million in net investment income, $26 million in interest credited to contractholder funds and $(7) million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $8 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2014.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2013			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	7		$	—		$	—		$	—		$	—
Municipal	343			(2		)	18			—			(17		)
Corporate	1,109			24			(14		)	89			(125		)
ABS	192			1			2			49			(144		)
RMBS	2			—			—			—			—
CMBS	43			(1		)	—			5			(4		)
Redeemable preferred stock	1			—			—			—			—
Total fixed income securities	1,697			22			6			143			(290		)
Equity securities	132			22			(16		)	—			(2		)
Short-term investments	—			—			—			—			—
Free-standing derivatives, net	(5		)	—			—			—			—
Other assets	—			1			—			—			—
Assets held for sale	362			(1		)	2			4			(2		)
Total recurring Level 3 assets	$	2,186		$	44		$	(8	)	$	147		$	(294	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(307	)	$	(8	)	$	—		$	—		$	—
Liabilities held for sale	(246		)	17			—			—			—
Total recurring Level 3 liabilities	$	(553	)	$	9		$	—		$	—		$	—

	Sold in LBL disposition ⁽³⁾			Purchases/Issues ⁽⁴⁾			Sales			Settlements			Balance as of December 31, 2014
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	6
Municipal	—			6			(74		)	(4		)	270
Corporate	—			64			(140		)	(116		)	891
ABS	—			119			—			(23		)	196
RMBS	—			—			—			(1		)	1
CMBS	4			8			(1		)	(31		)	23
Redeemable preferred stock	—			—			(1		)	—			—
Total fixed income securities	4			197			(216		)	(176		)	1,387
Equity securities	—			83			(136		)	—			83
Short-term investments	—			45			(40		)	—			5
Free-standing derivatives, net	—			2			—			(4		)	(7		)	⁽²	⁾
Other assets	—			—			—			—			1
Assets held for sale	(351		)	—			(8		)	(6		)	—
Total recurring Level 3 assets	$	(347	)	$	327		$	(400	)	$	(186	)	$	1,469
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	(14	)	$	—		$	6		$	(323	)
Liabilities held for sale	230			(4		)	—			3			—
Total recurring Level 3 liabilities	$	230		$	(18	)	$	—		$	9		$	(323	)

______________________________


⁽¹⁾	The effect to net income totals $53 million and is reported in the Consolidated Statements of Operations as follows: $34 million in realized capital gains and losses, $13 million in net investment income, $(5) million in interest credited to contractholder funds, $15 million in life and annuity contract benefits and $(4) million in loss on disposition of operations.


⁽²⁾	Comprises $2 million of assets and $9 million of liabilities.


⁽³⁾	Includes transfers from held for sale that took place in first quarter 2014 of $4 million for CMBS and $(4) million for Assets held for sale.


⁽⁴⁾	Represents purchases for assets and issues for liabilities.

Schedule of gains and losses included in net income for Level 3 assets and liabilities still held at the balance sheet date

The following table provides the change in unrealized gains and losses included in net income for Level 3 assets and liabilities held as of December 31.



($ in millions)	2016			2015			2014
Assets
Fixed income securities:
Municipal	$	2		$	(12	)	$	(7	)
Corporate	2			11			11
ABS	—			2			1
RMBS	—			—			(1		)
Total fixed income securities	4			1			4
Equity securities	(32		)	(4		)	—
Free-standing derivatives, net	5			1			5
Other assets	—			—			1
Total recurring Level 3 assets	$	(23	)	$	(2	)	$	10
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	5		$	19		$	(8	)
Liabilities held for sale	—			—			17
Total recurring Level 3 liabilities	$	5		$	19		$	9

Schedule of carrying values and fair value estimates of financial instruments not carried at fair value

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

Financial assets



($ in millions)	December 31, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	4,486	$	4,514	$	4,338	$	4,489
Cost method limited partnerships	1,282		1,493		1,154		1,450
Bank loans	1,669		1,677		1,565		1,527
Agent loans	467		467		422		408



($ in millions)	December 31, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	11,313	$	12,009	$	12,424	$	12,874
Long-term debt	6,347		6,920		5,124		5,648
Liability for collateral	1,129		1,129		840		840

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Financial Instruments and Off-balance sheet Financial Instruments

Volume and fair value positions of derivative instruments and location in the Consolidated Statement of Financial Position



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	49	n/a	$	5		$	5	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	65		n/a	1			1		—
Equity and index contracts
Options	Other investments	—		3,972	88			88		—
Financial futures contracts	Other assets	—		261	—			—		—
Foreign currency contracts
Foreign currency forwards	Other investments	759		n/a	—			24		(24		)
Credit default contracts
Credit default swaps – buying protection	Other investments	87		n/a	(4		)	—		(4		)
Credit default swaps – selling protection	Other investments	140		n/a	2			2		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		1,054		4,233	88			116		(28		)
Total asset derivatives		$	1,103	4,233	$	93		$	121	$	(28	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	$	—	4,848	$	(39	)	$	—	$	(39	)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	391		n/a	(34		)	—		(34		)
Guaranteed withdrawal benefits	Contractholder funds	290		n/a	(9		)	—		(9		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,751		n/a	(247		)	—		(247		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	136		n/a	(2		)	—		(2		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	105		n/a	(3		)	—		(3		)
Subtotal		2,673		4,848	(334		)	—		(334		)
Total liability derivatives		2,673		4,848	(334		)	$	—	$	(334	)
Total derivatives		$	3,776	9,081	$	(241	)

______________________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	45	n/a	$	6		$	6	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	42		n/a	—			—		—
Equity and index contracts
Options and warrants ⁽²⁾	Other investments	—		3,730	44			44		—
Financial futures contracts	Other assets	—		1,897	2			2		—
Foreign currency contracts
Foreign currency forwards	Other investments	185		n/a	1			2		(1		)
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	1,000		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	112		n/a	4			5		(1		)
Credit default swaps – selling protection	Other investments	150		n/a	2			2		—
Other contracts
Other contracts	Other investments	31		n/a	1			1		—
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		1,523		5,627	55			57		(2		)
Total asset derivatives		$	1,568	5,627	$	61		$	63	$	(2	)

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	19	n/a	$	4		$	4	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	—			—		—
Interest rate cap agreements	Other liabilities & accrued expenses	72		n/a	1			1		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		4,406	(7		)	—		(7		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	361		n/a	(12		)	1		(13		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	481		n/a	(38		)	—		(38		)
Guaranteed withdrawal benefits	Contractholder funds	332		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,781		n/a	(247		)	—		(247		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	88		n/a	(2		)	—		(2		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	105		n/a	(8		)	—		(8		)
Subtotal		3,390		4,406	(327		)	2		(329		)
Total liability derivatives		3,409		4,406	(323		)	$	6	$	(329	)
Total derivatives		$	4,977	10,033	$	(262	)

______________________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)


⁽²⁾	In addition to the number of contracts presented in the table, the Company held 220 stock rights and warrants. Stock rights and warrants can be converted to cash upon sale of those instruments or exercised for shares of common stock.

Schedule of gross and net amount for the Company's OTC derivatives subject to enforceable master netting arrangements

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.



($ in millions)				Offsets
	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged			Net amount
December 31, 2016
Asset derivatives	$	31		$	(28	)	$	19		$	22		$	(9	)	$	13
Liability derivatives	(33		)	28			—			(5		)	4			(1		)

December 31, 2015
Asset derivatives	$	21		$	(8	)	$	(5	)	$	8		$	(4	)	$	4
Liability derivatives	(25		)	8			(1		)	(18		)	9			(9		)

Impacts on operations and AOCI from foreign currency contracts, cash flow hedges



($ in millions)	2016		2015			2014
Gain recognized in OCI on derivatives during the period	$	—	$	10		$	12
Gain (loss) recognized in OCI on derivatives during the term of the hedging relationship	2		6			(2		)
Gain (loss) reclassified from AOCI into income (net investment income)	1		(1		)	(2		)
Gain (loss) reclassified from AOCI into income (realized capital gains and losses)	3		3			(2		)

Gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges



($ in millions)	Realized capital gains and losses			Life and annuity contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Loss on disposition of operations			Total gain (loss) recognized in net income on derivatives
2016
Equity and index contracts	$	(12	)	$	—		$	18		$	19		$	—		$	25
Embedded derivative financial instruments	—			9			—			—			—			9
Foreign currency contracts	17			—			—			(35		)	—			(18		)
Credit default contracts	(5		)	—			—			—			—			(5		)
Total	$	—		$	9		$	18		$	(16	)	$	—		$	11

2015
Interest rate contracts	$	1		$	—		$	—		$	—		$	—		$	1
Equity and index contracts	1			—			(9		)	(1		)	—			(9		)
Embedded derivative financial instruments	—			(7		)	31			—			—			24
Foreign currency contracts	(24		)	—			—			(8		)	—			(32		)
Credit default contracts	(2		)	—			—			—			—			(2		)
Total	$	(24	)	$	(7	)	$	22		$	(9	)	$	—		$	(18	)

2014
Interest rate contracts	$	(10	)	$	—		$	—		$	—		$	(4	)	$	(14	)
Equity and index contracts	(18		)	—			38			9			—			29
Embedded derivative financial instruments	—			15			(14		)	—			—			1
Foreign currency contracts	(9		)	—			—			(8		)	—			(17		)
Credit default contracts	1			—			—			—			—			1
Other contracts	—			—			(2		)	—			—			(2		)
Total	$	(36	)	$	15		$	22		$	1		$	(4	)	$	(2	)

Counterparty credit exposure by counterparty credit rating

The following table summarizes the counterparty credit exposure as of December 31 by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	2016							2015
Rating ⁽¹⁾	Number of counter-parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral ⁽²⁾		Number of counter-parties	Notional amount ⁽²⁾		Credit exposure ⁽²⁾		Exposure, net of collateral ⁽²⁾
AA–	2	$	80	$	2	$	2	—	$	—	$	—	$	—
A+	5	698		20		9		1	82		5		—
A	—	—		—		—		5	375		9		6
A–	1	110		1		1		1	41		3		—
BBB+	—	—		—		—		2	49		—		1
Total	8	$	888	$	23	$	12	9	$	547	$	17	$	7

______________________________


⁽¹⁾	Rating is the lower of S&P or Moody’s ratings.


⁽²⁾	Only OTC derivatives with a net positive fair value are included for each counterparty.

Derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability



($ in millions)	2016			2015
Gross liability fair value of contracts containing credit-risk-contingent features	$	9		$	21
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7		)	(3		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	—			(13		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	2		$	5

CDS notional amounts by credit rating and fair value of protection sold

The following table shows the CDS notional amounts by credit rating and fair value of protection sold.



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
December 31, 2016
Single name
Corporate debt	$	20	$	10	$	35	$	—	$	65	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(3		)
Index
Corporate debt	1		19		50		10		80		1
Total	$	21	$	29	$	185	$	10	$	245	$	(1	)
December 31, 2015
Single name
Corporate debt	$	20	$	10	$	45	$	—	$	75	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(8		)
Index
Corporate debt	1		20		52		7		80		1
Total	$	21	$	30	$	197	$	7	$	255	$	(6	)

Contractual amounts of off-balance-sheet financial instruments

The contractual amounts of off-balance sheet financial instruments as of December 31 are as follows:



($ in millions)	2016		2015
Commitments to invest in limited partnership interests	$	2,979	$	2,551
Private placement commitments	69		89
Municipal bond forward commitments	—		36
Other loan commitments	83		46

Reserve for Property-Liability Insurance Claims and Claims Expense (Tables)

12 Months Ended

Dec. 31, 2016

Reserve for Property-Liability Insurance Claims and Claims Expense

Activity in the reserve for property-liability insurance claims and claims expense

Activity in the reserve for property-liability insurance claims and claims expense is summarized as follows:



($ in millions)	2016			2015		2014
Balance as of January 1	$	23,869		$	22,923	$	21,857
Less reinsurance recoverables	5,892			5,694		4,664
Net balance as of January 1	17,977			17,229		17,193
Incurred claims and claims expense related to:
Current year	22,238			20,953		19,512
Prior years	(17		)	81		(84		)
Total incurred	22,221			21,034		19,428
Claims and claims expense paid related to:
Current year	14,222			13,660		12,924
Prior years	6,910			6,626		6,468
Total paid	21,132			20,286		19,392
Net balance as of December 31	19,066			17,977		17,229
Plus reinsurance recoverables	6,184			5,892		5,694
Balance as of December 31	$	25,250		$	23,869	$	22,923

Incurred and paid claims and claims expense

The information about incurred and paid claims development for the 2012 to 2015 years, and the average annual percentage payout of incurred claims by age as of December 31, 2016, is presented as required supplementary information.

Auto Insurance



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of reinsurance										IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										As of December 31, 2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	11,299	$	11,187	$	11,079	$	11,046	$	11,015	$	444	5,801,971
2013	—		11,329		11,269		11,273		11,204		888		5,890,375
2014	—		—		12,166		12,220		12,121		1,603		6,335,312
2015	—		—		—		13,521		13,466		2,963		6,754,829
2016	—		—		—		—		14,265		5,896		6,572,689
									$	62,071

	Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	6,818	$	8,760	$	9,660	$	10,251	$	10,571
2013	—		6,662		8,826		9,770		10,316
2014	—		—		7,312		9,586		10,518
2015	—		—		—		8,027		10,503
2016	—		—		—		—		8,369
							Total		$	50,277
All outstanding liabilities before 2012, net of reinsurance									1,167
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	12,961

Homeowners Insurance



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of reinsurance										IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										As of December 31, 2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	3,833	$	3,915	$	3,930	$	3,913	$	3,891	$	63	1,003,156
2013	—		3,091		3,163		3,156		3,135		97		682,525
2014	—		—		3,600		3,644		3,646		172		764,101
2015	—		—		—		3,565		3,615		323		717,025
2016	—		—		—		—		3,964		1,020		755,683
									$	18,251

	Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2012		2013		2014		2015		2016
2012	$	2,942	$	3,606	$	3,742	$	3,802	$	3,828
2013	—		2,283		2,878		2,991		3,038
2014	—		—		2,730		3,358		3,474
2015	—		—		—		2,584		3,293
2016	—		—		—		—		2,944
							Total		$	16,577
All outstanding liabilities before 2012, net of reinsurance									187
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	1,861

Average annual percentage payout of incurred claims by age, net of reinsurance



Average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2016
	1 year		2 years		3 years		4 years		5 years
Auto insurance	60.2	%	19.1	%	8.0	%	5.2	%	3.1	%



Average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2016
	1 year		2 years		3 years		4 years		5 years
Homeowners insurance	74.2	%	19.1	%	2.8	%	1.4	%	0.7	%

Reconciliation of the net incurred claims and claims expense development



($ in millions)
Net outstanding liabilities:
Auto insurance	$	12,961
Homeowners insurance	1,861
Other personal lines	1,310
Commercial lines	597
Other business lines	22
Discontinued Lines and Coverages ⁽¹⁾	1,382
Unallocated loss adjustment expenses	933
Net reserve for property-liability insurance claims and claims expense	19,066

Reinsurance recoverable:
Auto insurance	5,422
Homeowners insurance	9
Other personal lines	212
Commercial lines	21
Other business lines	10
Discontinued Lines and Coverages	508
Unallocated loss adjustment expenses	2
Total reinsurance recoverable	6,184
Gross reserve for property-liability insurance claims and claims expense	$	25,250

______________________________


⁽¹⁾	Discontinued Lines and Coverages includes business in run-off. All of the claims relate to accident years more than 10 years ago. IBNR reserves represent $800 million of the total reserves as of December 31, 2016.

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Tables)

12 Months Ended

Dec. 31, 2016

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

Reserve for life-contingent contract benefits

As of December 31, the reserve for life-contingent contract benefits consists of the following:



($ in millions)	2016		2015
Immediate fixed annuities:
Structured settlement annuities	$	6,681	$	6,673
Other immediate fixed annuities	1,941		2,041
Traditional life insurance	2,643		2,584
Accident and health insurance	873		844
Other	101		105
Total reserve for life-contingent contract benefits	$	12,239	$	12,247

Key assumptions generally used in calculating the reserve for life-contingent contract benefits

The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits:



Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 2.9% to 9.0%	Present value of contractually specified future benefits
Other immediate fixed annuities	1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table; 1983 individual annuity mortality table with internal modifications	Interest rate assumptions range from 0% to 11.5%	Present value of expected future benefits based on historical experience
Traditional life insurance	Actual company experience plus loading	Interest rate assumptions range from 2.5% to 11.3%	Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance	Actual company experience plus loading	Interest rate assumptions range from 3.0% to 7.0%	Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other: Variable annuity guaranteed minimum death benefits⁽¹⁾	Annuity 2012 mortality table with internal modifications	Interest rate assumptions range from 2.0% to 5.8%	Projected benefit ratio applied to cumulative assessments

______________________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (collectively “Prudential”).

Contractholder funds

As of December 31, contractholder funds consist of the following:



($ in millions)	2016		2015
Interest-sensitive life insurance	$	8,062	$	7,975
Investment contracts:
Fixed annuities	11,933		12,974
Funding agreements backing medium-term notes	—		85
Other investment contracts	265		261
Total contractholder funds	$	20,260	$	21,295

Key contract provisions relating to contractholder funds

The following table highlights the key contract provisions relating to contractholder funds:



Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0% to 10.5% for equity-indexed life (whose returns are indexed to the S&P 500) and 1.0% to 6.0% for all other products	Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities	Interest rates credited range from 0% to 9.8% for immediate annuities; (8.0)% to 13.3% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 6.0% for all other products	Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 17.9% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Other investment contracts: Guaranteed minimum income, accumulation and withdrawal benefits on variable ⁽¹⁾ and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities	Interest rates used in establishing reserves range from 1.5% to 10.3%	Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract

______________________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential.

Contractholder funds activity

Contractholder funds activity for the years ended December 31 is as follows:



($ in millions)	2016			2015			2014
Balance, beginning of year	$	21,295		$	22,529		$	24,304
Classified as held for sale, beginning balance	—			—			10,945
Total, including those classified as held for sale	21,295			22,529			35,249
Deposits	1,164			1,203			1,333
Interest credited	722			760			919
Benefits	(966		)	(1,077		)	(1,197		)
Surrenders and partial withdrawals	(1,053		)	(1,278		)	(2,273		)
Maturities of and interest payments on institutional products	(86		)	(1		)	(2		)
Contract charges	(829		)	(818		)	(881		)
Net transfers from separate accounts	5			7			7
Other adjustments	8			(30		)	36
Sold in LBL disposition	—			—			(10,662		)
Balance, end of year	$	20,260		$	21,295		$	22,529

Variable annuity contracts with guarantees



($ in millions)	December 31,
	2016		2015
In the event of death
Separate account value	$	3,298	$	3,560
Net amount at risk ⁽¹⁾	$	585	$	675
Average attained age of contractholders	70 years		69 years
At annuitization (includes income benefit guarantees)
Separate account value	$	915	$	967
Net amount at risk ⁽²⁾	$	265	$	281
Weighted average waiting period until annuitization options available	None		None
For cumulative periodic withdrawals
Separate account value	$	267	$	294
Net amount at risk ⁽³⁾	$	10	$	10
Accumulation at specified dates
Separate account value	$	310	$	371
Net amount at risk ⁽⁴⁾	$	26	$	31
Weighted average waiting period until guarantee date	3 years		4 years

______________________________


⁽¹⁾	Defined as the estimated current guaranteed minimum death benefit in excess of the current account balance as of the balance sheet date.


⁽²⁾	Defined as the estimated present value of the guaranteed minimum annuity payments in excess of the current account balance.


⁽³⁾	Defined as the estimated current guaranteed minimum withdrawal balance (initial deposit) in excess of the current account balance as of the balance sheet date.


⁽⁴⁾	Defined as the estimated present value of the guaranteed minimum accumulation balance in excess of the current account balance.

Liabilities for guarantees

The following table summarizes the liabilities for guarantees.



($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products		Liability for guarantees related to income benefits		Liability for guarantees related to accumulation and withdrawal benefits		Total
Balance, December 31, 2015 ⁽¹⁾	$	223	$	68	$	75	$	366
Less reinsurance recoverables	106		64		52		222
Net balance as of December 31, 2015	117		4		23		144
Incurred guarantee benefits	26		—		11		37
Paid guarantee benefits	—		—		—		—
Net change	26		—		11		37
Net balance as of December 31, 2016	143		4		34		181
Plus reinsurance recoverables	101		40		43		184
Balance, December 31, 2016 ⁽²⁾	$	244	$	44	$	77	$	365

Balance, December 31, 2014 ⁽³⁾	$	195	$	95	$	60	$	350
Less reinsurance recoverables	98		91		45		234
Net balance as of December 31, 2014	97		4		15		116
Incurred guarantee benefits	20		—		8		28
Paid guarantee benefits	—		—		—		—
Net change	20		—		8		28
Net balance as of December 31, 2015	117		4		23		144
Plus reinsurance recoverables	106		64		52		222
Balance, December 31, 2015 ⁽¹⁾	$	223	$	68	$	75	$	366

______________________________


⁽¹⁾	Included in the total liability balance as of December 31, 2015 are reserves for variable annuity death benefits of $105 million, variable annuity income benefits of $65 million, variable annuity accumulation benefits of $38 million, variable annuity withdrawal benefits of $14 million and other guarantees of $144 million.


⁽²⁾	Included in the total liability balance as of December 31, 2016 are reserves for variable annuity death benefits of $100 million, variable annuity income benefits of $40 million, variable annuity accumulation benefits of $34 million, variable annuity withdrawal benefits of $9 million and other guarantees of $182 million.


⁽³⁾	Included in the total liability balance as of December 31, 2014 are reserves for variable annuity death benefits of $96 million, variable annuity income benefits of $92 million, variable annuity accumulation benefits of $32 million, variable annuity withdrawal benefits of $13 million and other guarantees of $117 million.

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2016

Reinsurance Disclosures [Abstract]

Effects of reinsurance on property-liability insurance premiums written and earned and life and annuity premiums and contract charges

The effects of reinsurance on property-liability insurance premiums written and earned and life and annuity premiums and contract charges for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Property-liability insurance premiums written
Direct	$	32,614		$	31,924		$	30,686
Assumed	47			39			48
Ceded	(1,061		)	(1,092		)	(1,120		)
Property-liability insurance premiums written, net of reinsurance	$	31,600		$	30,871		$	29,614
Property-liability insurance premiums earned
Direct	$	32,249		$	31,274		$	29,914
Assumed	45			41			45
Ceded	(987		)	(1,006		)	(1,030		)
Property-liability insurance premiums earned, net of reinsurance	$	31,307		$	30,309		$	28,929
Life and annuity premiums and contract charges
Direct	$	1,766		$	1,641		$	1,944
Assumed	818			849			629
Ceded	(309		)	(332		)	(416		)
Life and annuity premiums and contract charges, net of reinsurance	$	2,275		$	2,158		$	2,157

Summary of retention limits by period of policy issuance

The following table summarizes those retention limits by period of policy issuance.



Period		Retention limits
April 2015 through current		Single life: $2 million per life Joint life: no longer offered
April 2011 through March 2015		Single life: $5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria Joint life: $8 million per life, and $10 million for contracts that meet specific criteria
July 2007 through March 2011		$5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria
September 1998 through June 2007		$2 million per life, in 2006 the limit was increased to $5 million for instances when specific criteria were met
August 1998 and prior		Up to $1 million per life

Summary of reinsurance recoverables on paid and unpaid benefits

Allstate Financial’s reinsurance recoverables on paid and unpaid benefits as of December 31 are summarized in the following table.



($ in millions)	2016		2015
Annuities	$	1,424	$	1,457
Life insurance	860		897
Other	184		185
Total Allstate Financial	$	2,468	$	2,539

Deferred Policy Acquisition and Sales Inducement Costs (Tables)

12 Months Ended

Dec. 31, 2016

Deferred Policy Acquisition and Sales Inducement Costs

Schedule of deferred policy acquisition costs

Deferred policy acquisition costs for the years ended December 31 are as follows:



($ in millions)	2016
	Allstate Financial			Property-Liability			Total
Balance, beginning of year	$	1,832		$	2,029		$	3,861
Acquisition costs deferred	291			4,426			4,717
Amortization charged to income	(283		)	(4,267		)	(4,550		)
Effect of unrealized gains and losses	(74		)	—			(74		)
Balance, end of year	$	1,766		$	2,188		$	3,954

	2015
	Allstate Financial			Property-Liability			Total
Balance, beginning of year	$	1,705		$	1,820		$	3,525
Acquisition costs deferred	285			4,311			4,596
Amortization charged to income	(262		)	(4,102		)	(4,364		)
Effect of unrealized gains and losses	104			—			104
Balance, end of year	$	1,832		$	2,029		$	3,861

	2014
	Allstate Financial			Property-Liability			Total
Balance, beginning of year	$	1,747		$	1,625		$	3,372
Classified as held for sale, beginning balance	743			—			743
Total, including those classified as held for sale	2,490			1,625			4,115
Acquisition costs deferred	280			4,070			4,350
Amortization charged to income	(260		)	(3,875		)	(4,135		)
Effect of unrealized gains and losses	(98		)	—			(98		)
Sold in LBL disposition	(707		)	—			(707		)
Balance, end of year	$	1,705		$	1,820		$	3,525

Schedule of DSI activity for Allstate Financial

DSI activity for Allstate Financial, which primarily relates to fixed annuities and interest-sensitive life contracts, for the years ended December 31 was as follows:



($ in millions)	2016			2015			2014
Balance, beginning of year	$	45		$	44		$	42
Classified as held for sale, beginning balance	—			—			28
Total, including those classified as held for sale	45			44			70
Sales inducements deferred	1			3			4
Amortization charged to income	(5		)	(4		)	(4		)
Effect of unrealized gains and losses	(1		)	2			(3		)
Sold in LBL disposition	—			—			(23		)
Balance, end of year	$	40		$	45		$	44

Capital Structure (Tables)

12 Months Ended

Dec. 31, 2016

Capital Structure

Total debt outstanding

Total debt outstanding as of December 31 consisted of the following:



($ in millions)	2016			2015
6.75% Senior Debentures, due 2018	$	176		$	176
7.45% Senior Notes, due 2019 ⁽¹⁾	317			317
3.15% Senior Notes, due 2023 ⁽¹⁾	500			500
3.28% Senior Notes, due 2026 ⁽¹⁾	550			—
6.125% Senior Notes, due 2032 ⁽¹⁾	159			159
5.35% Senior Notes due 2033 ⁽¹⁾	323			323
5.55% Senior Notes due 2035 ⁽¹⁾	546			546
5.95% Senior Notes, due 2036 ⁽¹⁾	386			386
6.90% Senior Debentures, due 2038	165			165
5.20% Senior Notes, due 2042 ⁽¹⁾	62			62
4.50% Senior Notes, due 2043 ⁽¹⁾	500			500
4.20% Senior Notes, due 2046 ⁽¹⁾	700			—
5.10% Subordinated Debentures, due 2053	500			500
5.75% Subordinated Debentures, due 2053	800			800
6.125% Junior Subordinated Debentures, due 2067	224			241
6.50% Junior Subordinated Debentures, due 2067	500			500
Long-term debt total principal	6,408			5,175
Debt issuance costs	(61		)	(51		)
Total long-term debt	6,347			5,124
Short-term debt ⁽²⁾	—			—
Total debt	$	6,347		$	5,124

______________________________


⁽¹⁾	Senior Notes are subject to redemption at the Company’s option in whole or in part at any time at the greater of either 100% of the principal amount plus accrued and unpaid interest to the redemption date or the discounted sum of the present values of the remaining scheduled payments of principal and interest and accrued and unpaid interest to the redemption date.


⁽²⁾	The Company classifies any borrowings which have a maturity of twelve months or less at inception as short-term debt.

Schedule of debt maturities for each of the next five years and thereafter

Debt maturities for each of the next five years and thereafter as of December 31, 2016 are as follows:



($ in millions)
2017	$	—
2018	176
2019	317
2020	—
2021	—
Thereafter	5,915
Total long-term debt principal	$	6,408

Schedule of noncumulative outstanding preferred stock



($ in millions, except per share data)		Aggregate liquidation preference				Dividend Per Share						Aggregate Dividend Payment
	Shares	Aggregate liquidation preference		Dividend rate		2016		2015		2014		2016		2015		2014
Series A	11,500	$	287.5	5.625	%	$	1.41	$	1.41	$	1.41	$	16	$	16	$	16
Series C	15,400	385.0		6.750	%	1.69		1.69		1.69		26		26		26
Series D	5,400	135.0		6.625	%	1.66		1.66		1.79		9		9		10
Series E	29,900	747.5		6.625	%	1.66		1.66		1.44		49		49		43
Series F	10,000	250.0		6.250	%	1.56		1.56		0.92		16		16		9
Total	72,200	$	1,805									$	116	$	116	$	104

Company Restructuring (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Schedule of changes in the restructuring liability

The following table presents changes in the restructuring liability in 2016.



($ in millions)	Employee costs			Exit costs			Total liability
Balance as of December 31, 2015	$	1		$	1		$	2
Expense incurred	8			6			14
Payments applied against liability	(9		)	(5		)	(14		)
Balance as of December 31, 2016	$	—		$	2		$	2

Commitments, Guarantees and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Guarantees and Contingent Liabilities

Minimum rental commitments under noncancelable capital and operating leases

Minimum rental commitments under operating leases with an initial or remaining term of more than one year as of December 31, 2016 are as follows:



($ in millions)
2017	$	122
2018	103
2019	88
2020	71
2021	53
Thereafter	169
Total	$	606

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Reconciliation of the change in the amount of unrecognized tax benefits

The reconciliation of the change in the amount of unrecognized tax benefits for the years ended December 31 is as follows:



($ in millions)	2016		2015		2014
Balance – beginning of year	$	7	$	—	$	—
Increase for tax positions taken in a prior year	—		4		—
Decrease for tax positions taken in a prior year	—		—		—
Increase for tax positions taken in the current year	3		3		—
Decrease for tax positions taken in the current year	—		—		—
Decrease for settlements	—		—		—
Reductions due to lapse of statute of limitations	—		—		—
Balance – end of year	$	10	$	7	$	—

Components of the deferred income tax assets and liabilities

The components of the deferred income tax assets and liabilities as of December 31 are as follows:



($ in millions)	2016			2015
Deferred assets
Unearned premium reserves	$	819		$	796
Pension	294			236
Accrued compensation	203			189
Discount on loss reserves	188			203
Difference in tax bases of invested assets	78			202
Other postretirement benefits	64			76
Other assets	118			137
Total deferred assets	1,764			1,839
Deferred liabilities
DAC	(1,211		)	(1,157		)
Unrealized net capital gains	(529		)	(303		)
Life and annuity reserves	(324		)	(260		)
Other liabilities	(187		)	(209		)
Total deferred liabilities	(2,251		)	(1,929		)
Net deferred liability	$	(487	)	$	(90	)

Components of income tax expense

The components of income tax expense for the years ended December 31 are as follows:



($ in millions)	2016		2015		2014
Current	$	654	$	1,033	$	1,123
Deferred	223		78		263
Total income tax expense	$	877	$	1,111	$	1,386

Reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31 is as follows:



	2016		2015		2014
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Tax-exempt income	(1.2	)	(1.0	)	(0.9	)
Tax credits	(1.2	)	(0.9	)	(0.7	)
Sale of subsidiary	—		—		(0.9	)
Other ⁽¹⁾	(0.7	)	0.8		0.2
Effective income tax rate	31.9	%	33.9	%	32.7	%

______________________________


⁽¹⁾	Includes $45 million of income tax expense related to the change in accounting guidance for investments in qualified affordable housing projects adopted in 2015.

Statutory Financial Information and Dividend Limitations (Tables)

12 Months Ended

Dec. 31, 2016

Statutory Financial Information and Dividend Limitations

Statutory net income and capital and surplus



($ in millions)	Net income (loss)							Capital and surplus
	2016		2015			2014		2016		2015
Amounts by major business type:
Property-Liability ⁽¹⁾	$	1,520	$	1,826		$	2,501	$	13,436	$	13,332
Allstate Financial	197		(56		)	1,130		3,383		3,154
Amount per statutory accounting practices	$	1,717	$	1,770		$	3,631	$	16,819	$	16,486

______________________________


⁽¹⁾	The Property-Liability statutory capital and surplus balances exclude wholly-owned subsidiaries included in the Allstate Financial segment.

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Components of the plans' funded status reflected in the Consolidated Statements of Financial Position

The components of the pension and other postretirement plans’ funded status that are reflected in the Consolidated Statements of Financial Position as of December 31 are as follows:



($ in millions)	Pension benefits						Postretirement benefits
	2016			2015			2016			2015
Fair value of plan assets	$	5,650		$	5,353		$	—		$	—
Less: Benefit obligation	6,591			6,130			373			405
Funded status	$	(941	)	$	(777	)	$	(373	)	$	(405	)

Items not yet recognized as a component of net periodic cost:
Net actuarial loss (gain)	$	2,807		$	2,710		$	(251	)	$	(263	)
Prior service credit	(310		)	(365		)	(62		)	(61		)
Unrecognized pension and other postretirement benefit cost, pre-tax	2,497			2,345			(313		)	(324		)
Deferred income tax	(874		)	(821		)	109			115
Unrecognized pension and other postretirement benefit cost	$	1,623		$	1,524		$	(204	)	$	(209	)

Change during the period in items not yet recognized as a component of net periodic cost

The change in 2016 in items not yet recognized as a component of net periodic cost, which is recorded in unrecognized pension and other postretirement benefit cost, is shown in the table below.



($ in millions)	Pension benefits			Postretirement benefits
Items not yet recognized as a component of net periodic cost – December 31, 2015	$	2,345		$	(324	)
Net actuarial loss (gain) arising during the period	294			(14		)
Net actuarial (loss) gain amortized to net periodic benefit cost	(201		)	24
Prior service credit arising during the period	—			(22		)
Prior service credit amortized to net periodic benefit cost	56			21
Translation adjustment and other	3			2
Items not yet recognized as a component of net periodic cost – December 31, 2016	$	2,497		$	(313	)

Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost in next fiscal year



($ in millions)	Pension benefits			Postretirement benefits
Net actuarial loss (gain)	$	189		$	(24	)
Prior service credit	(56		)	(24		)

Changes in benefit obligations for all plans

The changes in benefit obligations for all plans for the years ended December 31 are as follows:



($ in millions)	Pension benefits						Postretirement benefits
	2016			2015			2016			2015
Benefit obligation, beginning of year	$	6,130		$	6,493		$	405		$	575
Service cost	113			114			9			12
Interest cost	286			258			17			23
Participant contributions	1			—			16			19
Actuarial loss (gain)	387			(225		)	(14		)	(158		)
Benefits paid ⁽¹⁾	(301		)	(443		)	(41		)	(54		)
Plan amendments	—			—			(22		)	—
Translation adjustment and other	(25		)	(67		)	3			(12		)
Benefit obligation, end of year	$	6,591		$	6,130		$	373		$	405

______________________________


⁽¹⁾	Benefits paid include lump sum distributions, a portion of which may trigger settlement accounting treatment.

Components of net periodic cost

The components of net periodic cost for all plans for the years ended December 31 are as follows:



	Pension benefits									Postretirement benefits
($ in millions)	2016			2015			2014			2016			2015			2014
Service cost	$	113		$	114		$	96		$	9		$	12		$	10
Interest cost	286			258			262			17			23			23
Expected return on plan assets	(398		)	(424		)	(398		)	—			—			—
Amortization of:
Prior service credit	(56		)	(56		)	(58		)	(21		)	(22		)	(23		)
Net actuarial loss (gain)	174			190			127			(24		)	(9		)	(22		)
Settlement loss	27			31			54			—			—			—
Net periodic cost (credit)	$	146		$	113		$	83		$	(19	)	$	4		$	(12	)

Weighted average assumptions used to determine for pension plans and postretirement benefits plans the net benefit cost and benefit obligation

Weighted average assumptions used to determine net pension cost and net postretirement benefit cost for the years ended December 31 are:



	Pension benefits						Postretirement benefits
($ in millions)	2016		2015		2014		2016		2015		2014
Discount rate	4.83	%	4.10	%	5.00	%	4.59	%	3.97	%	5.11	%
Rate of increase in compensation levels	3.20		3.50		3.50		n/a		n/a		n/a
Expected long-term rate of return on plan assets	7.30		7.33		7.36		n/a		n/a		n/a

Weighted average assumptions used to determine benefit obligations as of December 31 are listed in the following table.



	Pension benefits				Postretirement benefits
	2016		2015		2016		2015
Discount rate	4.15	%	4.83	%	4.07	%	4.56	%
Rate of increase in compensation levels	3.20		3.20		n/a		n/a

Change in pension plan assets

The change in pension plan assets for the years ended December 31 is as follows:



($ in millions)	2016			2015
Fair value of plan assets, beginning of year	$	5,353		$	5,783
Actual return on plan assets	491			(43		)
Employer contribution	131			125
Benefits paid	(301		)	(443		)
Translation adjustment and other	(24		)	(69		)
Fair value of plan assets, end of year	$	5,650		$	5,353

Pension plans' weighted average target asset allocation and the actual percentage of plan assets

The pension plans’ weighted average target asset allocation and the actual percentage of plan assets, by asset category as of December 31, 2016 are as follows:



	Target asset allocation ⁽¹⁾	Actual percentage of plan assets
Asset category	2016	2016		2015
Equity securities ⁽²⁾	50 - 68%	62	%	60	%
Fixed income securities	27 - 37%	29		30
Limited partnership interests	0 - 14%	7		7
Short-term investments and other	—	2		3
Total without securities lending ⁽³⁾		100	%	100	%

______________________________


⁽¹⁾	The target asset allocation considers risk based exposure while the actual percentage of plan assets utilizes a financial reporting view excluding exposure provided through derivatives.

⁽²⁾


⁽³⁾	Securities lending collateral reinvestment of $143 million and $152 million is excluded from the table above in 2016 and 2015, respectively.

Fair values of pension plan assets

The following table presents the fair values of pension plan assets as of December 31, 2016.



($ in millions)
	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2016
Equity securities	$	155		$	3,230		$	79		$	3,464
Fixed income securities:
U.S. government and agencies	30			285			—			315
Corporate	—			1,309			10			1,319
Short-term investments	144			121			—			265
Limited partnership interests:
Real estate funds ⁽¹⁾	—			—			100			100
Private equity funds ⁽²⁾	—			—			261			261
Hedge funds	—			—			2			2
Cash and cash equivalents	32			—			—			32
Free-standing derivatives:
Assets	(1		)	1			—			—
Total plan assets at fair value	$	360		$	4,946		$	452		5,758
% of total plan assets at fair value	6.3		%	85.9		%	7.8		%	100.0		%

Securities lending obligation ⁽³⁾										(158		)
Other net plan assets ⁽⁴⁾										50
Total reported plan assets										$	5,650

______________________________


⁽¹⁾	Real estate funds held by the pension plans are primarily invested in U.S. commercial real estate.


⁽²⁾	Private equity investments held by the pension plans are primarily comprised of buyout and growth funds in North America and other developed markets.

⁽³⁾


⁽⁴⁾	Other net plan assets represent interest and dividends receivable and net receivables related to settlements of investment transactions, such as purchases and sales.

The following table presents the fair values of pension plan assets as of December 31, 2015.



($ in millions)
	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2015
Equity securities	$	136		$	2,945		$	100		$	3,181
Fixed income securities:
U.S. government and agencies	72			334			—			406
Municipal	—			—			7			7
Corporate	—			1,205			10			1,215
Short-term investments	112			184			—			296
Limited partnership interests:
Real estate funds	—			—			104			104
Private equity funds	—			—			237			237
Hedge funds	—			—			33			33
Cash and cash equivalents	22			—			—			22
Total plan assets at fair value	$	342		$	4,668		$	491		5,501
% of total plan assets at fair value	6.2		%	84.9		%	8.9		%	100.0		%

Securities lending obligation										(167		)
Other net plan assets										19
Total reported plan assets										$	5,353

Rollforward of Level 3 plan assets

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2016.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2015		Relating to assets sold during the period			Relating to assets still held at the reporting date			Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2016
Equity securities	$	100	$	(2	)	$	(1	)	$	(18	)	$	—	$	79
Fixed income securities:
Municipal	7		—			—			(7		)	—		—
Corporate	10		—			—			(5		)	5		10
Limited partnership interests:
Real estate funds	104		—			5			(9		)	—		100
Private equity funds	237		—			24			—			—		261
Hedge funds	33		—			(2		)	(29		)	—		2
Total Level 3 plan assets	$	491	$	(2	)	$	26		$	(68	)	$	5	$	452

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2015.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2014		Relating to assets sold during the period		Relating to assets still held at the reporting date			Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3			Balance as of December 31, 2015
Equity securities	$	75	$	1	$	(5	)	$	29		$	—		$	100
Fixed income securities:
Municipal	14		—		—			(7		)	—			7
Corporate	12		—		—			—			(2		)	10
Limited partnership interests:
Real estate funds	154		—		(12		)	(38		)	—			104
Private equity funds	218		—		(8		)	27			—			237
Hedge funds	32		—		1			—			—			33
Total Level 3 plan assets	$	505	$	1	$	(24	)	$	11		$	(2	)	$	491

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2014.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2013		Relating to assets sold during the period			Relating to assets still held at the reporting date		Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2014
Equity securities	$	237	$	2		$	2	$	(166	)	$	—	$	75
Fixed income securities:
Municipal	18		—			—		(4		)	—		14
Corporate	18		—			—		(6		)	—		12
Limited partnership interests:
Real estate funds	197		(3		)	6		(46		)	—		154
Private equity funds	211		(4		)	4		7			—		218
Hedge funds	9		—			—		23			—		32
Total Level 3 plan assets	$	690	$	(5	)	$	12	$	(192	)	$	—	$	505

Estimated future benefit payments expected to be paid



($ in millions)	Pension benefits		Postretirement benefits
2017	$	412	$	23
2018	421		23
2019	463		24
2020	487		25
2021	521		26
2022-2026	2,512		137
Total benefit payments	$	4,816	$	258

Schedule of ESOP benefit

These amounts were reduced by the ESOP benefit computed for the years ended December 31 as follows:



($ in millions)	2016			2015			2014
Interest expense recognized by ESOP	$	1		$	1		$	1
Less: dividends accrued on ESOP shares	(3		)	(3		)	(4		)
Cost of shares allocated	7			10			8
Compensation expense	5			8			5
Reduction of defined contribution due to ESOP	60			73			71
ESOP benefit	$	(55	)	$	(65	)	$	(66	)

Equity Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2016

Equity Incentive Plans

Assumptions used to determine the fair value of options granted

The assumptions used are shown in the following table.



	2016		2015		2014
Weighted average expected term	5.0 years		6.5 years		6.5 years
Expected volatility	16.0 - 34.3%		16.0 - 37.8%		16.8 - 42.2%
Weighted average volatility	24.3	%	24.7	%	28.3	%
Expected dividends	1.9 - 2.1%		1.6 - 2.1%		1.7 - 2.2%
Weighted average expected dividends	2.1	%	1.7	%	2.1	%
Risk-free rate	0.2 - 2.4%		0.0 - 2.4%		0.0 - 3.0%

Summary of option activity

A summary of option activity for the year ended December 31, 2016 is shown in the following table.



	Number (in 000s)		Weighted average exercise price		Aggregate intrinsic value (in 000s)		Weighted average remaining contractual term (years)
Outstanding as of January 1, 2016	15,716		$	45.81
Granted	3,013		62.84
Exercised	(4,755	)	43.20
Forfeited	(378	)	61.64
Expired	(36	)	64.83
Outstanding as of December 31, 2016	13,560		50.01		$	326,911	6.0
Outstanding, net of expected forfeitures	13,434		49.88		325,668		5.9
Outstanding, exercisable (“vested”)	8,104		42.24		258,367		4.5

Changes in restricted stock units

The changes in restricted stock units are shown in the following table for the year ended December 31, 2016.



	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2016	1,839		$	52.86
Granted	360		63.51
Vested	(449	)	39.30
Forfeited	(71	)	59.51
Nonvested as of December 31, 2016	1,679		58.49

Changes in performance stock units

The changes in performance stock awards are shown in the following table for the year ended December 31, 2016.



	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2016	930		$	53.27
Granted	520		62.32
Adjustment for performance achievement	(15	)	45.61
Vested	(442	)	45.61
Forfeited	(74	)	61.87
Nonvested as of December 31, 2016	919		61.50

Reporting Segments (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of business segments revenue disclosures

Summarized revenue data for each of the Company’s reportable segments for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Revenues
Property-Liability
Property-liability insurance premiums
Auto	$	21,264		$	20,410		$	19,344
Homeowners	7,257			7,136			6,904
Other personal lines	1,700			1,692			1,662
Commercial lines	506			510			476
Other business lines	580			561			542
Allstate Protection	31,307			30,309			28,928
Discontinued Lines and Coverages	—			—			1
Total property-liability insurance premiums	31,307			30,309			28,929
Net investment income	1,266			1,237			1,301
Realized capital gains and losses	(6		)	(237		)	549
Total Property-Liability	32,567			31,309			30,779
Allstate Financial
Life and annuity premiums and contract charges
Life and annuity premiums
Traditional life insurance	573			542			511
Immediate annuities with life contingencies	—			—			4
Accident and health insurance	859			780			744
Total life and annuity premiums	1,432			1,322			1,259
Contract charges
Interest-sensitive life insurance	829			822			879
Fixed annuities	14			14			19
Total contract charges	843			836			898
Total life and annuity premiums and contract charges	2,275			2,158			2,157
Net investment income	1,734			1,884			2,131
Realized capital gains and losses	(81		)	267			144
Total Allstate Financial	3,928			4,309			4,432
Corporate and Other
Service fees	4			3			5
Net investment income	42			35			27
Realized capital gains and losses	(3		)	—			1
Total Corporate and Other before reclassification of service fees	43			38			33
Reclassification of service fees ⁽¹⁾	(4		)	(3		)	(5		)
Total Corporate and Other	39			35			28
Consolidated revenues	$	36,534		$	35,653		$	35,239

______________________________


⁽¹⁾	For presentation in the Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses

Schedule of business segments net income disclosures

Summarized financial performance data for each of the Company’s reportable segments for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Net income
Property-Liability
Underwriting income
Allstate Protection	$	1,317		$	1,614		$	1,887
Discontinued Lines and Coverages	(107		)	(55		)	(115		)
Total underwriting income	1,210			1,559			1,772
Net investment income	1,266			1,237			1,301
Income tax expense on operations ⁽¹⁾	(812		)	(952		)	(1,040		)
Realized capital gains and losses, after-tax	—			(154		)	357
Gain on disposition of operations, after-tax	—			—			37
Property-Liability net income applicable to common shareholders	1,664			1,690			2,427
Allstate Financial
Life and annuity premiums and contract charges	2,275			2,158			2,157
Net investment income	1,734			1,884			2,131
Periodic settlements and accruals on non-hedge derivative instruments	—			—			(1		)
Contract benefits and interest credited to contractholder funds	(2,580		)	(2,563		)	(2,663		)
Operating costs and expenses and amortization of deferred policy acquisition costs	(774		)	(729		)	(721		)
Restructuring and related charges	(1		)	—			(2		)
Income tax expense on operations	(206		)	(241		)	(294		)
Operating income	448			509			607
Realized capital gains and losses, after-tax	(54		)	173			94
Valuation changes on embedded derivatives that are not hedged, after-tax	(2		)	(1		)	(15		)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(4		)	(3		)	(3		)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax	—			—			1
Gain (loss) on disposition of operations, after-tax	3			2			(53		)
Change in accounting for investments in qualified affordable housing projects, after-tax	—			(17		)	—
Allstate Financial net income applicable to common shareholders	391			663			631
Corporate and Other
Service fees ⁽²⁾	4			3			5
Net investment income	42			35			27
Operating costs and expenses ⁽²⁾	(328		)	(329		)	(364		)
Income tax benefit on operations	106			109			124
Preferred stock dividends	(116		)	(116		)	(104		)
Operating loss	(292		)	(298		)	(312		)
Realized capital gains and losses, after-tax	(2		)	—			—
Corporate and Other net loss applicable to common shareholders	(294		)	(298		)	(312		)
Consolidated net income applicable to common shareholders	$	1,761		$	2,055		$	2,746

______________________________


⁽¹⁾	Income tax on operations for Property-Liability segment includes $28 million of expense related to the change in accounting guidance for investments in qualified affordable housing projects adopted in 2015.


⁽²⁾	For presentation in the Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Additional significant financial performance data

Additional significant financial performance data for each of the Company’s reportable segments for the years ended December 31 are as follows:



($ in millions)	2016			2015			2014
Amortization of DAC
Property-Liability	$	4,267		$	4,102		$	3,875
Allstate Financial	283			262			260
Consolidated	$	4,550		$	4,364		$	4,135

Income tax expense
Property-Liability	$	806		$	869		$	1,211
Allstate Financial	178			351			299
Corporate and Other	(107		)	(109		)	(124		)
Consolidated	$	877		$	1,111		$	1,386

Summarized data for total assets and investments

Summarized data for total assets and investments for each of the Company’s reportable segments as of December 31 are as follows:



($ in millions)	2016		2015		2014
Assets
Property-Liability	$	60,394	$	55,671	$	55,767
Allstate Financial	45,945		46,342		49,248
Corporate and Other	2,271		2,643		3,464
Consolidated	$	108,610	$	104,656	$	108,479

Investments
Property-Liability	$	42,722	$	38,479	$	39,083
Allstate Financial	36,840		36,792		38,809
Corporate and Other	2,237		2,487		3,221
Consolidated	$	81,799	$	77,758	$	81,113

Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2016

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other comprehensive income (loss) on a pre-tax and after-tax basis

The components of other comprehensive income (loss) on a pre-tax and after-tax basis for the years ended December 31 are as follows:



($ in millions)	2016									2015									2014
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	486		$	(170	)	$	316		$	(1,896	)	$	663		$	(1,233	)	$	1,026		$	(358	)	$	668
Less: reclassification adjustment of realized capital gains and losses	(180		)	63			(117		)	112			(39		)	73			597			(209		)	388
Unrealized net capital gains and losses	666			(233		)	433			(2,008		)	702			(1,306		)	429			(149		)	280
Unrealized foreign currency translation adjustments	15			(5		)	10			(89		)	31			(58		)	(62		)	22			(40		)
Unrecognized pension and other postretirement benefit cost arising during the period	(263		)	94			(169		)	(64		)	25			(39		)	(1,197		)	421			(776		)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(100		)	35			(65		)	(134		)	47			(87		)	(78		)	27			(51		)
Unrecognized pension and other postretirement benefit cost	(163		)	59			(104		)	70			(22		)	48			(1,119		)	394			(725		)
Other comprehensive income (loss)	$	518		$	(179	)	$	339		$	(2,027	)	$	711		$	(1,316	)	$	(752	)	$	267		$	(485	)

Quarterly Results (unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results



($ in millions, except per share data)	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2016		2015		2016		2015		2016		2015		2016		2015
Revenues	$	8,871	$	8,952	$	9,164	$	8,982	$	9,221	$	9,028	$	9,278	$	8,691
Net income applicable to common shareholders	217		648		242		326		491		621		811		460
Net income applicable to common shareholders earnings per common share - Basic	0.57		1.56		0.65		0.80		1.32		1.56		2.20		1.19
Net income applicable to common shareholders earnings per common share - Diluted	0.57		1.53		0.64		0.79		1.31		1.54		2.18		1.18

General (Details)	Dec. 31, 2016 item
Allstate Protection
Nature of Operations
Premiums earned by Allstate Protection segment as a percentage of consolidated revenue	86.00%
Number of states in which entity is authorized to operate	50
Minimum percentage of premiums from one jurisdiction to be considered as significant	5.00%
Allstate Financial
Nature of Operations
Number of states in which entity is authorized to operate	50
Minimum percentage of premiums from one jurisdiction to be considered as significant	5.00%

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Policy loans	$ 904	$ 905

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Securities loaned
Cash collateral received as percentage of fair value of domestic securities loaned	102.00%
Cash collateral received as a percent of fair value of foreign securities loaned	105.00%
Deferred Policy Acquisition and Sales Inducement Costs
Valuation allowance for uncollectible premium installment receivables	$ 84	$ 90
Present value of future profits	53	58
Amortization expense of present value of future profits	$ 5	$ 8	$ 13
Minimum
Deferred Policy Acquisition and Sales Inducement Costs
Property-liability policies, term for deferment and recognition of premiums	6 months
Period for amortization of DAC for property-liability insurance	6 months
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	15 years
Maximum
Securities loaned
Securities lending transactions length	30 days
Deferred Policy Acquisition and Sales Inducement Costs
Property-liability policies, term for deferment and recognition of premiums	12 months
Period for amortization of DAC for property-liability insurance	12 months
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	30 years
Interest-sensitive life insurance \| Minimum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	10 years
Interest-sensitive life insurance \| Maximum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	20 years
Fixed annuities \| Minimum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	5 years
Fixed annuities \| Maximum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	10 years

Summary of Significant Accounting Policies (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill
Goodwill allocated to segments	$ 1,219,000,000	$ 1,219,000,000
Goodwill impairment	0	0
Allstate Protection
Goodwill
Goodwill allocated to segments	823,000,000	823,000,000
Allstate Financial
Goodwill
Goodwill allocated to segments	$ 396,000,000	$ 396,000,000

Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and equipment
Accumulated depreciation on property and equipment	$ 2,160	$ 2,090
Depreciation expense on property and equipment	$ 267	$ 255	$ 228
Equipment \| Minimum
Property and equipment
Property and equipment, estimated useful life, average	3 years
Equipment \| Maximum
Property and equipment
Property and equipment, estimated useful life, average	10 years
Real property
Property and equipment
Property and equipment, estimated useful life, average	40 years

Summary of Significant Accounting Policies (Details 5) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net income									$ 1,877	$ 2,171	$ 2,850
Less: Preferred stock dividends									116	116	104
Net income applicable to common shareholders	$ 811	$ 491	$ 242	$ 217	$ 460	$ 621	$ 326	$ 648	$ 1,761	$ 2,055	$ 2,746
Denominator:
Weighted average common shares outstanding									372.8	401.1	431.4
Effect of dilutive potential common shares:
Stock options (in shares)									3.2	4.0	4.7
Restricted stock units(non-participating) and performance stock awards (in shares)									1.3	1.7	2.1
Weighted average common and dilutive potential common shares outstanding									377.3	406.8	438.2
Earnings per common share - Basic (in dollars per share)	$ 2.20	$ 1.32	$ 0.65	$ 0.57	$ 1.19	$ 1.56	$ 0.80	$ 1.56	$ 4.72	$ 5.12	$ 6.37
Earnings per common share - Diluted (in dollars per share)	$ 2.18	$ 1.31	$ 0.64	$ 0.57	$ 1.18	$ 1.54	$ 0.79	$ 1.53	$ 4.67	$ 5.05	$ 6.27
Other Earnings Per Share Disclosures
Antidilutive stock options, exercise price exceeds market price (in shares)									3.8	2.2	3.0
Antidilutive stock options, exercise price exceeds market price, exercise price range, low end of range (in dollars per share)									$ 53.91	$ 57.98	$ 49.96
Antidilutive stock options, exercise price exceeds market price, exercise price range, high end of range (in dollars per share)									$ 71.29	$ 71.29	$ 67.61

Summary of Significant Accounting Policies (Details 6) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities	$ 509	$ 276
Limited partnership interests	5,814	4,874
Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities	509
Equity-method limited partnerships
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Limited partnership interests	4,530	$ 3,720
Equity-method limited partnerships \| Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Limited partnership interests	$ 178

Acquisition and Disposition Acquisition (Details) $ in Billions	Jan. 03, 2017 USD ($)
Subsequent Event \| SquareTrade
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 1.4

Acquisition and Disposition Disposition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Apr. 01, 2014
Disposition
(Gain) loss on disposition of operations	$ (5)	$ (3)	$ 74
LBL
Disposition
Disposal group, including discontinued operation				$ 797
Cash and retention tax benefits				$ 596
(Gain) loss on disposition of operations			101
Gain (loss) on disposition of operations, after-tax			60
Reduction in goodwill, included in loss on disposition, pre-tax			$ 22

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Non-cash modifications of certain mortgage loans, fixed income securities, limited partnership interests and other investments, as well as mergers completed with equity securities	$ 326	$ 131	$ 120
Liabilities assumed	34
Non-cash financing activities related to the issuance of shares for vested restricted stock units	41	74	47
Liabilities for collateral received reported in other liabilities and accrued expenses	1,120	829	780
Obligations to return cash collateral for over-the-counter ("OTC") and cleared derivatives reported in other liabilities and accrued expenses or other investments	5	11	2
Net change in proceeds managed
Net change in fixed income securities	(584)	0	0
Net change in short-term investments	295	(59)	(167)
Operating cash flow used	(289)	(59)	(167)
Net change in cash	0	1	9
Net change in proceeds managed	(289)	(58)	(158)
Net change in liabilities
Liabilities for collateral, beginning of year	(840)	(782)	(624)
Liabilities for collateral, end of year	(1,129)	(840)	(782)
Operating cash flow provided	$ 289	58	$ 158
Limited Partnership
Debt Instrument [Line Items]
Liabilities assumed		$ 89

Investments (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available for Sale Securities
Amortized cost	$ 56,576	$ 57,201
Gross unrealized gains	1,710	1,707
Gross unrealized losses	(447)	(960)
Fair value	57,839	57,948
U.S. government and agencies
Schedule of Available for Sale Securities
Amortized cost	3,572	3,836
Gross unrealized gains	74	90
Gross unrealized losses	(9)	(4)
Fair value	3,637	3,922
Municipal
Schedule of Available for Sale Securities
Amortized cost	7,116	7,032
Gross unrealized gains	304	389
Gross unrealized losses	(87)	(20)
Fair value	7,333	7,401
Corporate
Schedule of Available for Sale Securities
Amortized cost	42,742	41,674
Gross unrealized gains	1,178	1,032
Gross unrealized losses	(319)	(879)
Fair value	43,601	41,827
Foreign government
Schedule of Available for Sale Securities
Amortized cost	1,043	983
Gross unrealized gains	36	50
Gross unrealized losses	(4)	0
Fair value	1,075	1,033
ABS
Schedule of Available for Sale Securities
Amortized cost	1,169	2,359
Gross unrealized gains	13	11
Gross unrealized losses	(11)	(43)
Fair value	1,171	2,327
RMBS
Schedule of Available for Sale Securities
Amortized cost	651	857
Gross unrealized gains	85	100
Gross unrealized losses	(8)	(10)
Fair value	728	947
CMBS
Schedule of Available for Sale Securities
Amortized cost	262	438
Gross unrealized gains	17	32
Gross unrealized losses	(9)	(4)
Fair value	270	466
Redeemable preferred stock
Schedule of Available for Sale Securities
Amortized cost	21	22
Gross unrealized gains	3	3
Gross unrealized losses	0	0
Fair value	$ 24	$ 25

Investments (Details 2) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Amortized cost
Due in one year or less	$ 4,873
Due after one year through five years	27,836
Due after five years through ten years	16,448
Due after ten years	5,337
Subtotal	54,494
ABS, RMBS and CMBS	2,082
Amortized cost	56,576	$ 57,201
Fair value
Due in one year or less	4,898
Due after one year through five years	28,307
Due after five years through ten years	16,612
Due after ten years	5,853
Subtotal	55,670
ABS, RMBS and CMBS	2,169
Fair value	$ 57,839	$ 57,948

Investments (Details 3) - USD ($) $ in Millions	12 Months Ended
Investments (Details 3) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net Investment Income:
Investment income, before expense	$ 3,213	$ 3,306	$ 3,620
Investment expense	(171)	(150)	(161)
Net investment income	3,042	3,156	3,459
Fixed income securities
Net Investment Income:
Investment income, before expense	2,060	2,218	2,447
Equity securities
Net Investment Income:
Investment income, before expense	137	110	117
Mortgage loans
Net Investment Income:
Investment income, before expense	217	228	265
Limited partnership interests
Net Investment Income:
Investment income, before expense	561	549	614
Short-term investments
Net Investment Income:
Investment income, before expense	16	9	7
Other
Net Investment Income:
Investment income, before expense	$ 222	$ 192	$ 170

Investments (Details 4) - USD ($) $ in Millions	12 Months Ended
Investments (Details 4) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Realized capital gains and losses by asset type
Realized capital gains and losses	$ (90)	$ 30	$ 694
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains and losses	(91)	212	130
Equity securities
Realized capital gains and losses by asset type
Realized capital gains and losses	23	(50)	582
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains and losses	0	6	2
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains and losses	(21)	(93)	13
Derivatives
Realized capital gains and losses by asset type
Realized capital gains and losses	3	(21)	(38)
Other
Realized capital gains and losses by asset type
Realized capital gains and losses	$ (4)	$ (24)	$ 5

Investments (Details 5) - USD ($) $ in Millions	12 Months Ended
Investments (Details 5) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments [Abstract]
Impairment write-downs	$ (234)	$ (195)	$ (32)
Change in intent write-downs	(69)	(221)	(213)
Net OTTI losses recognized in earnings	(303)	(416)	(245)
Sales and other	213	470	975
Valuation and settlements of derivative instruments	0	(24)	(36)
Total realized capital gains and losses	(90)	30	694
Fixed income and equity securities
Schedule of Available for Sale Securities
Gross gains on sales of fixed income securities	631	915	1,100
Gross loss on sales of fixed income securities	$ 461	$ 399	$ 169

Investments (Details 6) - USD ($) $ in Millions	12 Months Ended
Investments (Details 6) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other-than-temporary impairment losses by asset type
Gross	$ (313)	$ (452)	$ (242)
Included in OCI	10	36	(3)
Net OTTI losses recognized in earnings	(303)	(416)	(245)
Fixed income securities
Other-than-temporary impairment losses by asset type
Gross	(54)	(111)	(24)
Included in OCI	10	36	(3)
Net OTTI losses recognized in earnings	(44)	(75)	(27)
Municipal
Other-than-temporary impairment losses by asset type
Gross	0	(17)	(10)
Included in OCI	0	4	0
Net OTTI losses recognized in earnings	0	(13)	(10)
Corporate
Other-than-temporary impairment losses by asset type
Gross	(33)	(61)	(7)
Included in OCI	9	11	0
Net OTTI losses recognized in earnings	(24)	(50)	(7)
ABS
Other-than-temporary impairment losses by asset type
Gross	(6)	(33)	(12)
Included in OCI	0	22	1
Net OTTI losses recognized in earnings	(6)	(11)	(11)
RMBS
Other-than-temporary impairment losses by asset type
Gross	0	1	6
Included in OCI	(1)	(1)	(4)
Net OTTI losses recognized in earnings	(1)	0	2
CMBS
Other-than-temporary impairment losses by asset type
Gross	(15)	(1)	(1)
Included in OCI	2	0	0
Net OTTI losses recognized in earnings	(13)	(1)	(1)
Equity securities
Other-than-temporary impairment losses by asset type
Gross	(194)	(279)	(196)
Included in OCI	0	0	0
Net OTTI losses recognized in earnings	(194)	(279)	(196)
Mortgage loans
Other-than-temporary impairment losses by asset type
Gross	0	4	5
Included in OCI	0	0	0
Net OTTI losses recognized in earnings	0	4	5
Limited partnership interests
Other-than-temporary impairment losses by asset type
Gross	(56)	(51)	(27)
Included in OCI	0	0	0
Net OTTI losses recognized in earnings	(56)	(51)	(27)
Other
Other-than-temporary impairment losses by asset type
Gross	(9)	(15)	0
Included in OCI	0	0	0
Net OTTI losses recognized in earnings	$ (9)	$ (15)	$ 0

Investments (Details 7) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Investments [Abstract]
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 221	$ 233
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(133)	(147)
Municipal
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(8)	(9)
Corporate
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(7)	(7)
ABS
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(21)	(23)
RMBS
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(90)	(102)
CMBS
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	$ (7)	$ (6)

Investments (Details 8) - USD ($) $ in Millions	12 Months Ended
Investments (Details 8) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Credit Losses on Fixed Income Securities
Beginning balance	$ (392)	$ (380)	$ (513)
Additional credit loss for securities previously other-than-temporarily impaired	(21)	(30)	(6)
Additional credit loss for securities not previously other-than-temporarily impaired	(23)	(45)	(18)
Reduction in credit loss for securities disposed or collected	117	60	95
Change in credit loss due to accretion of increase in cash flows	1	3	3
Reduction in credit loss for securities sold in LBL disposition	0	0	59
Ending balance	$ (318)	$ (392)	$ (380)

Investments (Details 9) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Fair value
Fixed income securities	$ 57,839	$ 57,948
Equity securities	5,666	5,082
Short-term investments	4,288	2,122
Derivative instruments	5	10
Gross unrealized Gains
Fixed income securities	1,710	1,707
Equity securities	594	415
Short-term investments	0	0
Derivative instruments	5	10
Gross unrealized Losses
Fixed income securities	(447)	(960)
Equity securities	(85)	(139)
Short-term investments	0	0
Derivative instruments	(3)	(4)
Unrealized net gains (losses)
Fixed income securities	1,263	747
Equity securities	509	276
Short-term investments	0	0
Derivative instruments	2	6
EMA limited partnerships	(4)	(4)
Unrealized net capital gains and losses, pre-tax	1,770	1,025
Amounts recognized for:
Insurance reserves	0	0
DAC and DSI	(146)	(67)
Amounts recognized	(146)	(67)
Deferred income taxes	(571)	(338)
Total unrealized net capital gains and losses	1,053	620
Fair value of derivative securities classified as assets, with unrealized net gains (losses) in AOCI	$ 5	6
Fair value of derivative securities classified as liabilities, with unrealized net gains (losses) in AOCI		$ (4)

Investments (Details 10) - USD ($) $ in Millions	12 Months Ended
Investments (Details 10) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 745	$ (2,148)	$ 478
Amounts recognized for:
Insurance reserves	0	28	(28)
DAC and DSI	(79)	112	(21)
Amounts recognized	(79)	140	(49)
Deferred income taxes	(233)	702	(149)
Increase (decrease) in unrealized net capital gains and losses, after-tax	433	(1,306)	280
Equity-method limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	0	1	(2)
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	516	(2,021)	866
Equity securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	233	(136)	(212)
Derivatives
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(4)	8	16
Investments classified as held for sale
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 0	$ 0	$ (190)

Investments (Details 11) $ in Millions	Dec. 31, 2016 USD ($) security	Dec. 31, 2015 USD ($) security
Fixed income and equity securities
Less than 12 months
Number of issues \| security	2,590	2,144
Fair value	$ 18,572	$ 23,917
Unrealized losses	$ (407)	$ (839)
12 months or more
Number of issues \| security	334	354
Fair value	$ 1,087	$ 1,654
Unrealized losses	(125)	(260)
Total unrealized losses
Total unrealized losses	$ (532)	$ (1,099)
Fixed income securities
Less than 12 months
Number of issues \| security	2,395	1,879
Fair value	$ 17,918	$ 22,520
Unrealized losses	$ (351)	$ (732)
12 months or more
Number of issues \| security	288	317
Fair value	$ 922	$ 1,511
Unrealized losses	(96)	(228)
Total unrealized losses
Total unrealized losses	$ (447)	$ (960)
U.S. government and agencies
Less than 12 months
Number of issues \| security	46	53
Fair value	$ 943	$ 1,874
Unrealized losses	$ (9)	$ (4)
12 months or more
Number of issues \| security	0	0
Fair value	$ 0	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ (9)	$ (4)
Municipal
Less than 12 months
Number of issues \| security	1,310	222
Fair value	$ 3,073	$ 810
Unrealized losses	$ (76)	$ (6)
12 months or more
Number of issues \| security	8	9
Fair value	$ 29	$ 36
Unrealized losses	(11)	(14)
Total unrealized losses
Total unrealized losses	$ (87)	$ (20)
Corporate
Less than 12 months
Number of issues \| security	862	1,361
Fair value	$ 13,343	$ 17,915
Unrealized losses	$ (256)	$ (696)
12 months or more
Number of issues \| security	83	111
Fair value	$ 678	$ 1,024
Unrealized losses	(63)	(183)
Total unrealized losses
Total unrealized losses	$ (319)	$ (879)
Foreign government
Less than 12 months
Number of issues \| security	41	9
Fair value	$ 225	$ 44
Unrealized losses	$ (4)	$ 0
12 months or more
Number of issues \| security	0	0
Fair value	$ 0	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ (4)	$ 0
ABS
Less than 12 months
Number of issues \| security	31	133
Fair value	$ 222	$ 1,733
Unrealized losses	$ (1)	$ (24)
12 months or more
Number of issues \| security	14	20
Fair value	$ 109	$ 324
Unrealized losses	(10)	(19)
Total unrealized losses
Total unrealized losses	$ (11)	$ (43)
RMBS
Less than 12 months
Number of issues \| security	89	88
Fair value	$ 53	$ 69
Unrealized losses	$ (1)	$ 0
12 months or more
Number of issues \| security	179	176
Fair value	$ 91	$ 125
Unrealized losses	(7)	(10)
Total unrealized losses
Total unrealized losses	$ (8)	$ (10)
CMBS
Less than 12 months
Number of issues \| security	15	13
Fair value	$ 59	$ 75
Unrealized losses	$ (4)	$ (2)
12 months or more
Number of issues \| security	4	1
Fair value	$ 15	$ 2
Unrealized losses	(5)	(2)
Total unrealized losses
Total unrealized losses	$ (9)	$ (4)
Redeemable preferred stock
Less than 12 months
Number of issues \| security	1
Fair value	$ 0
Unrealized losses	$ 0
12 months or more
Number of issues \| security	0
Fair value	$ 0
Unrealized losses	0
Total unrealized losses
Total unrealized losses	$ 0
Equity securities
Less than 12 months
Number of issues \| security	195	265
Fair value	$ 654	$ 1,397
Unrealized losses	$ (56)	$ (107)
12 months or more
Number of issues \| security	46	37
Fair value	$ 165	$ 143
Unrealized losses	(29)	(32)
Total unrealized losses
Total unrealized losses	$ (85)	$ (139)
Investment grade fixed income securities
Less than 12 months
Number of issues \| security	2,202	1,405
Fair value	$ 15,678	$ 17,521
Unrealized losses	$ (293)	$ (362)
12 months or more
Number of issues \| security	201	225
Fair value	$ 493	$ 972
Unrealized losses	(51)	(105)
Total unrealized losses
Total unrealized losses	$ (344)	$ (467)
Below investment grade fixed income securities
Less than 12 months
Number of issues \| security	193	474
Fair value	$ 2,240	$ 4,999
Unrealized losses	$ (58)	$ (370)
12 months or more
Number of issues \| security	87	92
Fair value	$ 429	$ 539
Unrealized losses	(45)	(123)
Total unrealized losses
Total unrealized losses	$ (103)	$ (493)

Investments (Details 12) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	$ 444
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	88
Limited partnership interests	5,814	$ 4,874
Fixed income and equity securities
Other details of unrealized loss
Available-for-sale securities, continuous unrealized loss position, accumulated loss	532	1,099
Investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	318
Available-for-sale securities, continuous unrealized loss position, accumulated loss	344	467
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	26
Equity securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	55
Available-for-sale securities, continuous unrealized loss position, accumulated loss	85	139
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	30
Below investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	71
Available-for-sale securities, continuous unrealized loss position, accumulated loss	103	493
Available for sale securities, unrealized losses having loss of less than twenty percent, less than 12 months	47
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	32
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost, unrealized loss position of 12 or more consecutive months	14
Equity-method limited partnerships
Other details of unrealized loss
Limited partnership interests	4,530	3,720
Cost-method limited partnership interests
Other details of unrealized loss
Limited partnership interests	$ 1,280	$ 1,150

Investments (Details 13) $ in Millions	12 Months Ended
Investments (Details 13) $ in Millions	Dec. 31, 2016 USD ($) loan	Dec. 31, 2015 USD ($)
Investments [Abstract]
Threshold percentage of mortgage loans to total carrying value	5.00%
Mortgage Loans on Real Estate
Carrying value	$ 4,486	$ 4,338
Percent	100.00%	100.00%
Apartment complex
Mortgage Loans on Real Estate
Percent	27.60%	26.40%
Office buildings
Mortgage Loans on Real Estate
Percent	23.90%	22.70%
Retail
Mortgage Loans on Real Estate
Percent	20.40%	21.30%
Warehouse
Mortgage Loans on Real Estate
Percent	17.00%	18.40%
Other
Mortgage Loans on Real Estate
Percent	11.10%	11.20%
California
Mortgage Loans on Real Estate
Percent	19.30%	21.30%
Texas
Mortgage Loans on Real Estate
Percent	10.50%	9.70%
New Jersey
Mortgage Loans on Real Estate
Percent	8.20%	8.70%
Illinois
Mortgage Loans on Real Estate
Percent	6.70%	7.10%
Florida
Mortgage Loans on Real Estate
Percent	5.40%	5.30%
Mortgage loans, not in foreclosure
Mortgage Loans on Real Estate
Number of loans \| loan	303
Carrying value	$ 4,486
Percent	100.00%
Mortgage loans, not in foreclosure \| 2017
Mortgage Loans on Real Estate
Number of loans \| loan	28
Carrying value	$ 295
Percent	6.60%
Mortgage loans, not in foreclosure \| 2018
Mortgage Loans on Real Estate
Number of loans \| loan	29
Carrying value	$ 336
Percent	7.50%
Mortgage loans, not in foreclosure \| 2019
Mortgage Loans on Real Estate
Number of loans \| loan	10
Carrying value	$ 267
Percent	6.00%
Mortgage loans, not in foreclosure \| 2020
Mortgage Loans on Real Estate
Number of loans \| loan	14
Carrying value	$ 190
Percent	4.20%
Mortgage loans, not in foreclosure \| Thereafter
Mortgage Loans on Real Estate
Number of loans \| loan	222
Carrying value	$ 3,398
Percent	75.70%

Investments (Details 14) - USD ($) $ in Millions	12 Months Ended
Investments (Details 14) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Total				$ 4,486	$ 4,338
Mortgage loans, non-impaired
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				4,442	4,332
Variable rate mortgage loans				39	0
Total				4,481	4,332
Net carrying value of impaired mortgage loans
Impaired mortgage loans with a valuation allowance				5	6
Impaired mortgage loans without a valuation allowance				0	0
Total impaired mortgage loans				5	6
Valuation allowance on impaired mortgage loans	$ 3	$ 8	$ 21	3	3
Rollforward of the valuation allowance on impaired mortgage loans
Beginning balance	3	8	21
Net decrease in valuation allowance	0	(4)	(5)
Charge offs	0	(1)	(8)
Ending balance	3	3	8
Mortgage loans, non-impaired \| Below 1.0
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				60	64
Variable rate mortgage loans				0	0
Total				60	64
Mortgage loans, non-impaired \| 1.0 - 1.25
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				324	382
Variable rate mortgage loans				0	0
Total				324	382
Mortgage loans, non-impaired \| 1.26 - 1.50
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				1,293	1,219
Variable rate mortgage loans				0	0
Total				1,293	1,219
Mortgage loans, non-impaired \| Above 1.50
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				2,765	2,667
Variable rate mortgage loans				39	0
Total				$ 2,804	$ 2,667
Mortgage loans
Average carrying value and interest income recognized on impaired mortgage loans
Average impaired mortgage loans	$ 6	$ 11	$ 27

Investments (Details 15) - USD ($) $ in Millions	12 Months Ended
Investments (Details 15) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Municipal Bonds
Threshold percentage of municipal to total carrying value	5.00%
Securities loaned
Fixed income and equity securities loaned	$ 1,080	$ 798
Interest Income on collateral, net of fees	6	2	$ 2
Other investment information
Below investment grade assets	8,620	$ 8,640
Fixed income securities and short-term investments deposited with regulatory authorities	168
Non-income producing fixed income securities and other investments	$ 70
Shareholders' equity \| Concentration of credit risk \| Minimum
Municipal Bonds
Percentage of credit concentration risk of single issuer and affiliates of shareholder's equity	10.00%
Texas
Municipal Bonds
Percentage of municipal bonds carrying value	10.00%	9.20%
California
Municipal Bonds
Percentage of municipal bonds carrying value	7.20%	6.30%
New York
Municipal Bonds
Percentage of municipal bonds carrying value	6.80%	7.70%
Florida
Municipal Bonds
Percentage of municipal bonds carrying value	5.70%	5.60%
Washington
Municipal Bonds
Percentage of municipal bonds carrying value	5.60%	5.60%
Michigan
Municipal Bonds
Percentage of municipal bonds carrying value	5.40%	3.90%

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Fixed income securities	$ 57,839	$ 57,948
Equity securities	5,666	5,082
Short-term investments	4,288	2,122
Other investments: Free-standing derivatives	1	1	$ 2
Separate account assets	3,393	3,658
Counterparty and cash collateral netting	$ (9)	$ (13)
Assets as a percent of assets measured at fair value	0.00%	0.00%
Liabilities
Other liabilities: Free-standing derivatives	$ (3)	$ (8)	$ (9)
Counterparty and cash collateral netting	$ 28	$ 7
Counterparty and cash collateral netting as a percent of liabilities measured at fair value	(8.40%)	(2.20%)
Limited partnership interests	$ 24	$ 42
Other investments		13
U.S. government and agencies
Assets
Fixed income securities	3,637	3,922
Municipal
Assets
Fixed income securities	7,333	7,401
Foreign government
Assets
Fixed income securities	1,075	1,033
RMBS
Assets
Fixed income securities	728	947
CMBS
Assets
Fixed income securities	270	466
Redeemable preferred stock
Assets
Fixed income securities	24	25
Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	$ 12,408	$ 12,117
Assets as a percent of assets measured at fair value	17.40%	17.60%
Liabilities
Liabilities as a percent of liabilities measured at fair value	0.30%	0.30%
Significant other observable inputs (Level 2)
Assets
Total assets at fair value	$ 58,161	$ 55,781
Assets as a percent of assets measured at fair value	81.50%	80.90%
Liabilities
Liabilities as a percent of liabilities measured at fair value	20.40%	7.10%
Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	$ 762	$ 1,036
Assets as a percent of assets measured at fair value	1.10%	1.50%
Liabilities
Liabilities as a percent of liabilities measured at fair value	87.70%	94.80%
Recurring
Assets
Counterparty and cash collateral netting	$ (9)	$ (13)
Liabilities
Counterparty and cash collateral netting	28	7
Recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities	2,918	3,056
Equity securities	5,247	4,786
Short-term investments	850	615
Other investments: Free-standing derivatives	0	0
Separate account assets	3,393	3,658
Other assets	0	2
Total assets at fair value	12,408	12,117
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Other liabilities: Free-standing derivatives	(1)	(1)
Total liabilities at fair value	(1)	(1)
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities	2,918	3,056
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Municipal
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - public
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - privately placed
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Foreign government
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| ABS - CDO
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| ABS - consumer and other
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| RMBS
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| CMBS
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Redeemable preferred stock
Assets
Fixed income securities	0	0
Recurring \| Significant other observable inputs (Level 2)
Assets
Fixed income securities	54,363	54,046
Equity securities	256	163
Short-term investments	3,423	1,507
Other investments: Free-standing derivatives	119	65
Separate account assets	0	0
Other assets	0	0
Total assets at fair value	58,161	55,781
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Other liabilities: Free-standing derivatives	(68)	(23)
Total liabilities at fair value	(68)	(23)
Recurring \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities	719	861
Recurring \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities	7,208	7,240
Recurring \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities	31,414	30,356
Recurring \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities	11,846	10,923
Recurring \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities	1,075	1,033
Recurring \| Significant other observable inputs (Level 2) \| ABS - CDO
Assets
Fixed income securities	650	716
Recurring \| Significant other observable inputs (Level 2) \| ABS - consumer and other
Assets
Fixed income securities	452	1,500
Recurring \| Significant other observable inputs (Level 2) \| RMBS
Assets
Fixed income securities	727	946
Recurring \| Significant other observable inputs (Level 2) \| CMBS
Assets
Fixed income securities	248	446
Recurring \| Significant other observable inputs (Level 2) \| Redeemable preferred stock
Assets
Fixed income securities	24	25
Recurring \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities	558	846
Equity securities	163	133
Short-term investments	15	0
Other investments: Free-standing derivatives	1	1
Separate account assets	0	0
Other assets	1	1
Total assets at fair value	738	981
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(290)	(299)
Other liabilities: Free-standing derivatives	(3)	(8)
Total liabilities at fair value	(293)	(307)
Recurring \| Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities	0	5
Recurring \| Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities	125	161
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities	78	46
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities	263	502
Recurring \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities	0	0
Recurring \| Significant unobservable inputs (Level 3) \| ABS - CDO
Assets
Fixed income securities	27	61
Recurring \| Significant unobservable inputs (Level 3) \| ABS - consumer and other
Assets
Fixed income securities	42	50
Recurring \| Significant unobservable inputs (Level 3) \| RMBS
Assets
Fixed income securities	1	1
Recurring \| Significant unobservable inputs (Level 3) \| CMBS
Assets
Fixed income securities	22	20
Recurring \| Significant unobservable inputs (Level 3) \| Redeemable preferred stock
Assets
Fixed income securities	0	0
Non-recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	0	0
Non-recurring \| Significant other observable inputs (Level 2)
Assets
Total assets at fair value	0	0
Non-recurring \| Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	24	55
Fair value
Assets
Total assets at fair value	$ 71,322	$ 68,921
Assets as a percent of assets measured at fair value	100.00%	100.00%
Liabilities
Liabilities as a percent of liabilities measured at fair value	100.00%	100.00%
Fair value \| Recurring
Assets
Fixed income securities	$ 57,839	$ 57,948
Equity securities	5,666	5,082
Short-term investments	4,288	2,122
Other investments: Free-standing derivatives	111	53
Separate account assets	3,393	3,658
Other assets	1	3
Total assets at fair value	71,298	68,866
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(290)	(299)
Other liabilities: Free-standing derivatives	(44)	(25)
Total liabilities at fair value	(334)	(324)
Fair value \| Recurring \| U.S. government and agencies
Assets
Fixed income securities	3,637	3,922
Fair value \| Recurring \| Municipal
Assets
Fixed income securities	7,333	7,401
Fair value \| Recurring \| Corporate - public
Assets
Fixed income securities	31,492	30,402
Fair value \| Recurring \| Corporate - privately placed
Assets
Fixed income securities	12,109	11,425
Fair value \| Recurring \| Foreign government
Assets
Fixed income securities	1,075	1,033
Fair value \| Recurring \| ABS - CDO
Assets
Fixed income securities	677	777
Fair value \| Recurring \| ABS - consumer and other
Assets
Fixed income securities	494	1,550
Fair value \| Recurring \| RMBS
Assets
Fixed income securities	728	947
Fair value \| Recurring \| CMBS
Assets
Fixed income securities	270	466
Fair value \| Recurring \| Redeemable preferred stock
Assets
Fixed income securities	24	25
Fair value \| Non-recurring
Assets
Total assets at fair value	$ 24	$ 55

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Quantitative information about the significant unobservable inputs
Fair value	$ 57,839	$ 57,948
Derivatives embedded in life and annuity contracts - Equity-indexed and forward starting options \| Stochastic cash flow model
Quantitative information about the significant unobservable inputs
Weighted average projected option cost (as a percent)	1.75%	1.76%
Derivatives embedded in life and annuity contracts - Equity-indexed and forward starting options \| Minimum \| Stochastic cash flow model
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	1.00%	1.00%
Derivatives embedded in life and annuity contracts - Equity-indexed and forward starting options \| Maximum \| Stochastic cash flow model
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	2.20%	2.20%
Fixed income securities - non-binding broker quotes
Quantitative information about the significant unobservable inputs
Assets, fair value disclosure	$ 307	$ 625
Municipal - not rated by third party credit rating agencies
Quantitative information about the significant unobservable inputs
Assets, fair value disclosure	80	96
Significant unobservable inputs (Level 3)
Quantitative information about the significant unobservable inputs
Assets, fair value disclosure	762	1,036
Significant unobservable inputs (Level 3) \| Derivatives embedded in life and annuity contracts - Equity-indexed and forward starting options \| Stochastic cash flow model
Quantitative information about the significant unobservable inputs
Financial and Nonfinancial Liabilities, Fair Value Disclosure	(247)	(247)
Recurring \| Significant unobservable inputs (Level 3)
Quantitative information about the significant unobservable inputs
Financial and Nonfinancial Liabilities, Fair Value Disclosure	(293)	(307)
Fair value	558	846
Assets, fair value disclosure	$ 738	$ 981

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Balance at beginning of period	$ 2,186	$ 973	$ 1,469	$ 2,186
Total gains (losses) included in: net income		3	5	44
Total gains (losses) included in: OCI		23	(28)	(8)
Transfers into Level 3		76	59	147
Transfers out of Level 3		(559)	(433)	(294)
Sold in LBL disposition				(347)
Purchases		410	276	327
Sales		(79)	(223)	(400)
Issues		0	0
Settlements		(112)	(152)	(186)
Balance at end of period		735	973	1,469
Liabilities
Balance at beginning of period	(553)	(299)	(323)	(553)
Total gains (losses) included in: net income		5	19	9
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	0
Transfers out of Level 3		0	0	0
Purchases		0	0
Sold in LBL disposition				230
Purchases/Issues				(18)
Sales		0	0	0
Issues		(3)	(2)
Settlements		7	7	9
Balance at end of period		(290)	(299)	(323)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Gain (loss) included in earnings		8	24	53
Other investments: Free-standing derivatives		1	1	2
Free-standing derivatives, liabilities		3	8	9
Assets transferred between Level 1 and Level 2		0	0	0
Liabilities transferred between Level 1 and Level 2		0	0	0
Realized capital gains and losses
Assets
Total gains (losses) included in: net income		(9)	(8)	34
Net investment income
Assets
Total gains (losses) included in: net income		12	13	13
Interest credited to contractholder funds
Assets
Total gains (losses) included in: net income		(4)	26	(5)
Life and annuity contract benefits
Assets
Total gains (losses) included in: net income		9	(7)	15
Loss on disposition of operations
Assets
Total gains (losses) included in: net income				(4)
Fixed income securities
Assets
Balance at beginning of period	1,697	846	1,387	1,697
Total gains (losses) included in: net income		29	7	22
Total gains (losses) included in: OCI		11	(23)	6
Transfers into Level 3		76	59	143
Transfers out of Level 3		(547)	(433)	(290)
Sold in LBL disposition				4
Purchases		330	172	197
Sales		(75)	(172)	(216)
Issues		0	0
Settlements		(112)	(151)	(176)
Balance at end of period		558	846	1,387
U.S. government and agencies
Assets
Balance at beginning of period	7	5	6	7
Total gains (losses) included in: net income		0	0	0
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	0
Transfers out of Level 3		(4)	0	0
Sold in LBL disposition				0
Purchases		0	0	0
Sales		0	0	0
Issues		0	0
Settlements		(1)	(1)	(1)
Balance at end of period		0	5	6
Municipal
Assets
Balance at beginning of period	343	161	270	343
Total gains (losses) included in: net income		12	(4)	(2)
Total gains (losses) included in: OCI		(10)	(7)	18
Transfers into Level 3		6	3	0
Transfers out of Level 3		(23)	(2)	(17)
Sold in LBL disposition				0
Purchases		22	0	6
Sales		(40)	(91)	(74)
Issues		0	0
Settlements		(3)	(8)	(4)
Balance at end of period		125	161	270
Corporate - public
Assets
Balance at beginning of period		46	214
Total gains (losses) included in: net income		0	0
Total gains (losses) included in: OCI		0	0
Transfers into Level 3		41	0
Transfers out of Level 3		(43)	(175)
Purchases		47	11
Sales		(11)	0
Issues		0	0
Settlements		(2)	(4)
Balance at end of period		78	46	214
Corporate - privately placed
Assets
Balance at beginning of period		502	677
Total gains (losses) included in: net income		15	13
Total gains (losses) included in: OCI		18	(20)
Transfers into Level 3		16	13
Transfers out of Level 3		(398)	(106)
Purchases		181	79
Sales		(15)	(74)
Issues		0	0
Settlements		(56)	(80)
Balance at end of period		263	502	677
ABS - CDO
Assets
Balance at beginning of period		61	104
Total gains (losses) included in: net income		1	(1)
Total gains (losses) included in: OCI		6	4
Transfers into Level 3		10	43
Transfers out of Level 3		(43)	(52)
Purchases		40	0
Sales		(3)	(2)
Issues		0	0
Settlements		(45)	(35)
Balance at end of period		27	61	104
ABS - consumer and other
Assets
Balance at beginning of period		50	92
Total gains (losses) included in: net income		0	(1)
Total gains (losses) included in: OCI		(3)	0
Transfers into Level 3		3	0
Transfers out of Level 3		(35)	(98)
Purchases		35	70
Sales		(5)	(5)
Issues		0	0
Settlements		(3)	(8)
Balance at end of period		42	50	92
Corporate
Assets
Balance at beginning of period	1,109		891	1,109
Total gains (losses) included in: net income				24
Total gains (losses) included in: OCI				(14)
Transfers into Level 3				89
Transfers out of Level 3				(125)
Sold in LBL disposition				0
Purchases				64
Sales				(140)
Settlements				(116)
Balance at end of period				891
ABS
Assets
Balance at beginning of period	192		196	192
Total gains (losses) included in: net income				1
Total gains (losses) included in: OCI				2
Transfers into Level 3				49
Transfers out of Level 3				(144)
Sold in LBL disposition				0
Purchases				119
Sales				0
Settlements				(23)
Balance at end of period				196
ABS \| LBL
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Transfer from held for sale	(4)
RMBS
Assets
Balance at beginning of period	2	1	1	2
Total gains (losses) included in: net income		1	0	0
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	0
Transfers out of Level 3		0	0	0
Sold in LBL disposition				0
Purchases		0	0	0
Sales		(1)	0	0
Issues		0	0
Settlements		0	0	(1)
Balance at end of period		1	1	1
CMBS
Assets
Balance at beginning of period	43	20	23	43
Total gains (losses) included in: net income		0	0	(1)
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	5
Transfers out of Level 3		(1)	0	(4)
Sold in LBL disposition				4
Purchases		5	12	8
Sales		0	0	(1)
Issues		0	0
Settlements		(2)	(15)	(31)
Balance at end of period		22	20	23
CMBS \| LBL
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Transfer from held for sale	4
Redeemable preferred stock
Assets
Balance at beginning of period	1		0	1
Total gains (losses) included in: net income				0
Total gains (losses) included in: OCI				0
Transfers into Level 3				0
Transfers out of Level 3				0
Sold in LBL disposition				0
Purchases				0
Sales				(1)
Settlements				0
Balance at end of period				0
Equity securities
Assets
Balance at beginning of period	132	133	83	132
Total gains (losses) included in: net income		(32)	(3)	22
Total gains (losses) included in: OCI		12	(5)	(16)
Transfers into Level 3		0	0	0
Transfers out of Level 3		(12)	0	(2)
Sold in LBL disposition				0
Purchases		65	69	83
Sales		(4)	(11)	(136)
Issues		0	0
Settlements		1	0	0
Balance at end of period		163	133	83
Short-term investments
Assets
Balance at beginning of period	0	0	5	0
Total gains (losses) included in: net income		0	0	0
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	0
Transfers out of Level 3		0	0	0
Sold in LBL disposition				0
Purchases		15	35	45
Sales		0	(40)	(40)
Issues		0	0
Settlements		0	0	0
Balance at end of period		15	0	5
Free-standing derivatives, net
Assets
Balance at beginning of period	(5)	(7)	(7)	(5)
Total gains (losses) included in: net income		6	1	0
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	0
Transfers out of Level 3		0	0	0
Sold in LBL disposition				0
Purchases		0	0	2
Sales		0	0	0
Issues		0	0
Settlements		(1)	(1)	(4)
Balance at end of period		(2)	(7)	(7)
Other assets
Assets
Balance at beginning of period	0	1	1	0
Total gains (losses) included in: net income		0	0	1
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	0
Transfers out of Level 3		0	0	0
Sold in LBL disposition				0
Purchases		0	0	0
Sales		0	0	0
Issues		0	0
Settlements		0	0	0
Balance at end of period		1	1	1
Assets held for sale
Assets
Balance at beginning of period	362		0	362
Total gains (losses) included in: net income				(1)
Total gains (losses) included in: OCI				2
Transfers into Level 3				4
Transfers out of Level 3				(2)
Sold in LBL disposition				(351)
Purchases				0
Sales				(8)
Settlements				(6)
Balance at end of period				0
Contractholder funds: Derivatives embedded in life and annuity contracts
Liabilities
Balance at beginning of period	(307)	(299)	(323)	(307)
Total gains (losses) included in: net income		5	19	(8)
Total gains (losses) included in: OCI		0	0	0
Transfers into Level 3		0	0	0
Transfers out of Level 3		0	0	0
Purchases		0	0
Sold in LBL disposition				0
Purchases/Issues				(14)
Sales		0	0	0
Issues		(3)	(2)
Settlements		7	7	6
Balance at end of period		(290)	(299)	(323)
Liabilities held for sale
Liabilities
Balance at beginning of period	$ (246)		0	(246)
Total gains (losses) included in: net income		$ 0	$ 0	17
Total gains (losses) included in: OCI				0
Transfers into Level 3				0
Transfers out of Level 3				0
Sold in LBL disposition				230
Purchases/Issues				(4)
Sales				0
Settlements				3
Balance at end of period				$ 0

Fair Value of Assets and Liabilities (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	$ (23)	$ (2)	$ 10
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	5	19	9
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date, included in earnings	(18)	17	19
Realized capital gains and losses
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	(36)	(20)	(3)
Net investment income
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	13	18	12
Interest credited to contractholder funds
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	(4)	26	(5)
Life and annuity contract benefits
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	9	(7)	15
Contractholder funds: Derivatives embedded in life and annuity contracts
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	5	19	(8)
Liabilities held for sale
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	0	0	17
Fixed income securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	4	1	4
Municipal
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	2	(12)	(7)
Corporate
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	2	11	11
ABS
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	0	2	1
RMBS
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	0	0	(1)
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	(32)	(4)	0
Free-standing derivatives, net
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	5	1	5
Other assets
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	$ 0	$ 0	$ 1

Fair Value of Assets and Liabilities (Details 5) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financial assets
Mortgage loans	$ 4,486	$ 4,338
Financial liabilities
Long-term debt	6,347	5,124
Liability for collateral	1,129	840	$ 782	$ 624
Carrying value
Financial assets
Mortgage loans	4,486	4,338
Cost method limited partnerships	1,282	1,154
Bank loans	1,669	1,565
Agent loans	467	422
Financial liabilities
Contractholder funds on investment contracts	11,313	12,424
Long-term debt	6,347	5,124
Liability for collateral	1,129	840
Fair value
Financial assets
Mortgage loans	4,514	4,489
Cost method limited partnerships	1,493	1,450
Bank loans	1,677	1,527
Agent loans	467	408
Financial liabilities
Contractholder funds on investment contracts	12,009	12,874
Long-term debt	6,920	5,648
Liability for collateral	$ 1,129	$ 840

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract shares
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Assumed recoveries under sale of credit protection	$ 0
Cash and securities pledged in the form of margin deposits	9
Derivatives, Fair Value
Total asset derivatives, Notional amount	1,103	$ 1,568
Total liability derivatives, Notional amount	2,673	3,409
Total derivatives, Notional amount	$ 3,776	$ 4,977
Total asset derivatives, Number of contracts \| contract	4,233	5,627
Total liability derivatives, Number of contracts \| contract	4,848	4,406
Total derivatives, Number of contracts \| contract	9,081	10,033
Net amount on balance sheet	$ 93	$ 61
Asset derivatives, Gross asset	121	63
Asset derivatives, gross liability	(28)	(2)
Net amount on balance sheet	(334)	(323)
Total derivatives, Fair value, net	(241)	(262)
Liability derivatives, Gross asset	0	6
Liability derivatives, Gross liability	(334)	$ (329)
Number of stock rights and warrants held by the company related to derivative contracts (in shares) \| shares		220
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	1,054	$ 1,523
Total liability derivatives, Notional amount	$ 2,673	$ 3,390
Total asset derivatives, Number of contracts \| contract	4,233	5,627
Total liability derivatives, Number of contracts \| contract	4,848	4,406
Net amount on balance sheet	$ 88	$ 55
Asset derivatives, Gross asset	116	57
Asset derivatives, gross liability	(28)	(2)
Net amount on balance sheet	(334)	(327)
Liability derivatives, Gross asset	0	2
Liability derivatives, Gross liability	(334)	(329)
Foreign currency swap agreements \| Other investments \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	49	45
Net amount on balance sheet	5	6
Asset derivatives, Gross asset	5	6
Asset derivatives, gross liability	0	0
Foreign currency swap agreements \| Other liabilities & accrued expenses \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount		19
Net amount on balance sheet		4
Liability derivatives, Gross asset		4
Liability derivatives, Gross liability		0
Interest rate swap agreements \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount		85
Net amount on balance sheet		0
Liability derivatives, Gross asset		0
Liability derivatives, Gross liability		0
Interest rate cap agreements \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	65	42
Net amount on balance sheet	1	0
Asset derivatives, Gross asset	1	0
Asset derivatives, gross liability	0	0
Interest rate cap agreements \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount		72
Net amount on balance sheet		1
Liability derivatives, Gross asset		1
Liability derivatives, Gross liability		0
Options and warrants \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	3,972	3,730
Net amount on balance sheet	$ 88	$ 44
Asset derivatives, Gross asset	88	44
Asset derivatives, gross liability	0	0
Financial futures contracts \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	261	1,897
Net amount on balance sheet	$ 0	$ 2
Asset derivatives, Gross asset	0	2
Asset derivatives, gross liability	0	0
Options and futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0	$ 0
Total liability derivatives, Number of contracts \| contract	4,848	4,406
Net amount on balance sheet	$ (39)	$ (7)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(39)	(7)
Foreign currency forwards \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	759	185
Net amount on balance sheet	0	1
Asset derivatives, Gross asset	24	2
Asset derivatives, gross liability	(24)	(1)
Foreign currency forwards \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount		361
Net amount on balance sheet		(12)
Liability derivatives, Gross asset		1
Liability derivatives, Gross liability		(13)
Guaranteed accumulation benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	391	481
Net amount on balance sheet	(34)	(38)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(34)	(38)
Guaranteed withdrawal benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	290	332
Net amount on balance sheet	(9)	(14)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(9)	(14)
Equity-indexed and forward starting options in life and annuity product contracts \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	1,751	1,781
Net amount on balance sheet	(247)	(247)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(247)	(247)
Other embedded derivative financial instruments \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		1,000
Net amount on balance sheet		0
Asset derivatives, Gross asset		0
Asset derivatives, gross liability		0
Other embedded derivative financial instruments \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount		85
Net amount on balance sheet		0
Liability derivatives, Gross asset		0
Liability derivatives, Gross liability		0
Credit default swaps – buying protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	87	112
Net amount on balance sheet	(4)	4
Asset derivatives, Gross asset	0	5
Asset derivatives, gross liability	(4)	(1)
Credit default swaps – buying protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	136	88
Net amount on balance sheet	(2)	(2)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(2)	(2)
Credit default swaps – selling protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	140	150
Net amount on balance sheet	2	2
Asset derivatives, Gross asset	2	2
Asset derivatives, gross liability	0	0
Credit default swaps – selling protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	105	105
Net amount on balance sheet	(3)	(8)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(3)	(8)
Other contracts \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		31
Net amount on balance sheet		1
Asset derivatives, Gross asset		1
Asset derivatives, gross liability		0
Other contracts \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	3	3
Net amount on balance sheet	1	1
Asset derivatives, Gross asset	1	1
Asset derivatives, gross liability	$ 0	$ 0

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 2) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Asset derivatives
Gross amount	$ 121	$ 63
Derivative asset, fair value, gross liability	(28)	(2)
Net amount on balance sheet	93	61
Liability derivatives
Gross amount	(334)	(329)
Liability derivatives, Gross asset	0	6
Net amount on balance sheet	(334)	(323)
OTC derivatives
Asset derivatives
Gross amount	31	21
Derivative asset, fair value, gross liability	(28)	(8)
Derivative asser cash received pledged		(5)
Derivative asset offsets under cash collateral pledged	19
Net amount on balance sheet	22	8
Securities collateral (received) pledged	(9)	(4)
Net amount	13	4
Liability derivatives
Gross amount	(33)	(25)
Liability derivatives, Gross asset	28	8
Derivative liability offsets under cash collateral pledged	0	(1)
Net amount on balance sheet	(5)	(18)
Securities collateral (received) pledged	4	9
Net amount	$ (1)	$ (9)

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Cash flow hedge gain to be reclassified from AOCI during the next twelve months	$ 2,000,000
Net gain (loss) recognized in earnings during the reporting period representing the amount of the fair value of the hedges' ineffectiveness.	0	$ 0	$ 0
Gain recognized in OCI on derivatives during the period	0	10,000,000	12,000,000
Gain (loss) recognized in OCI on derivatives during the term of the hedging relationship	2,000,000	6,000,000	(2,000,000)
Reclassification out of Accumulated Other Comprehensive Income \| Cash flow hedges \| Net investment income
Derivative [Line Items]
Investment Income, Net	1,000,000	(1,000,000)	(2,000,000)
Reclassification out of Accumulated Other Comprehensive Income \| Cash flow hedges \| Realized capital gains and losses
Derivative [Line Items]
Investment Income, Net	$ 3,000,000	$ 3,000,000	$ (2,000,000)

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 5) $ in Millions	Dec. 31, 2016 USD ($) counter-party	Dec. 31, 2015 USD ($) counter-party
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Cash and securities pledged as collateral by counterparties	$ 13
Securities pledged as collateral to counterparties	27
Collateral posted under MNAs, credit-risk-contingent provisions in a liability position	$ 0	$ (13)
Credit Derivatives
Number of counter-parties \| counter-party	8	9
Notional amount	$ 888	$ 547
Credit exposure	23	17
Exposure, net of collateral	12	7
Gross liability fair value of contracts containing credit-risk-contingent features	9	21
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7)	(3)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	0	(13)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 2	$ 5
AA–
Credit Derivatives
Number of counter-parties \| counter-party	2	0
Notional amount	$ 80	$ 0
Credit exposure	2	0
Exposure, net of collateral	$ 2	$ 0
A plus
Credit Derivatives
Number of counter-parties \| counter-party	5	1
Notional amount	$ 698	$ 82
Credit exposure	20	5
Exposure, net of collateral	$ 9	$ 0
A
Credit Derivatives
Number of counter-parties \| counter-party	0	5
Notional amount	$ 0	$ 375
Credit exposure	0	9
Exposure, net of collateral	$ 0	$ 6
A-
Credit Derivatives
Number of counter-parties \| counter-party	1	1
Notional amount	$ 110	$ 41
Credit exposure	1	3
Exposure, net of collateral	$ 1	$ 0
BBB+
Credit Derivatives
Number of counter-parties \| counter-party	0	2
Notional amount	$ 0	$ 49
Credit exposure	0	0
Exposure, net of collateral	$ 0	$ 1

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 6) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) entity	Dec. 31, 2015 USD ($)
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Term of credit default swaps	5 years
Credit Derivatives
Notional amount	$ 3,776	$ 4,977
The number of reference entities generally included in a CDX index \| entity	125
Credit default swaps
Credit Derivatives
Notional amount	$ 245	255
Fair value	(1)	(6)
Credit default swaps \| Single name \| Corporate
Credit Derivatives
Notional amount	65	75
Fair value	1	1
Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	100	100
Fair value	(3)	(8)
Credit default swaps \| Index \| Corporate
Credit Derivatives
Notional amount	80	80
Fair value	1	1
AA \| Credit default swaps
Credit Derivatives
Notional amount	21	21
AA \| Credit default swaps \| Single name \| Corporate
Credit Derivatives
Notional amount	20	20
AA \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
AA \| Credit default swaps \| Index \| Corporate
Credit Derivatives
Notional amount	1	1
A \| Credit default swaps
Credit Derivatives
Notional amount	29	30
A \| Credit default swaps \| Single name \| Corporate
Credit Derivatives
Notional amount	10	10
A \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
A \| Credit default swaps \| Index \| Corporate
Credit Derivatives
Notional amount	19	20
BBB \| Credit default swaps
Credit Derivatives
Notional amount	185	197
BBB \| Credit default swaps \| Single name \| Corporate
Credit Derivatives
Notional amount	35	45
BBB \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	100	100
BBB \| Credit default swaps \| Index \| Corporate
Credit Derivatives
Notional amount	50	52
BB and lower \| Credit default swaps
Credit Derivatives
Notional amount	10	7
BB and lower \| Credit default swaps \| Single name \| Corporate
Credit Derivatives
Notional amount	0	0
BB and lower \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
BB and lower \| Credit default swaps \| Index \| Corporate
Credit Derivatives
Notional amount	$ 10	$ 7

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 7) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Commitments to invest in limited partnership interests	$ 2,979	$ 2,551
Private placement commitments	69	89
Municipal bond forward commitments	0	36
Other loan commitments	$ 83	$ 46

Reserve for Property-Liability Insurance Claims and Claims Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Incurred claims and claims expense related to:
Current year	$ 22,238	$ 20,953	$ 19,512
Prior years	17	81	84
Claims and claims expense paid related to:
Balance as of December 31	25,250
Property-Liability
Activity in the reserve for property-liability insurance claims and claims expense:
Balance as of January 1	23,869	22,923	21,857
Less reinsurance recoverables	5,892	5,694	4,664
Net balance as of January 1	17,977	17,229	17,193
Incurred claims and claims expense related to:
Current year	22,238	20,953	19,512
Prior years	(17)	81	(84)
Total incurred	22,221	21,034	19,428
Claims and claims expense paid related to:
Current year	14,222	13,660	12,924
Prior years	6,910	6,626	6,468
Total paid	21,132	20,286	19,392
Net balance as of December 31	19,066	17,977	17,229
Plus reinsurance recoverables	6,184	5,892	5,694
Balance as of December 31	$ 25,250	$ 23,869	$ 22,923

Reserve for Property-Liability Insurance Claims and Claims Expense (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	$ 17	$ 81	$ 84
Auto
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(155)	30	(238)
Catastrophes
Increase (decrease) in claims and claims expense
Losses from catastrophes, net of recoveries	2,570	1,720	1,990
Non-catastrophes loss reestimates \| Homeowners
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(24)	(24)
Reserve reestimates \| Other personal lines
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	57	22	13
Reserve reestimates \| Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	105	53	112
Catastrophe loss reestimates
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	$ 6	$ (15)	43
Catastrophe loss reestimates \| Homeowners
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves			$ 29

Reserve for Property-Liability Insurance Claims and Claims Expense (Details 3) $ in Millions	Dec. 31, 2016 USD ($) claim	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Increase (decrease) in claims and claims expense
Liabilities for claims and claim adjustment expenses, net of reinsurance	$ 19,066
Auto
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	62,071
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	50,277
All outstanding liabilities before 2012, net of reinsurance	1,167
Liabilities for claims and claim adjustment expenses, net of reinsurance	12,961
Auto \| Accident Year 2012
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	11,015	$ 11,046	$ 11,079	$ 11,187	$ 11,299
IBNR reserves plus expected development on reported claims	$ 444
Cumulative number of reported claims \| claim	5,801,971
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 10,571	10,251	9,660	8,760	6,818
Auto \| Accident Year 2013
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	11,204	11,273	11,269	11,329
IBNR reserves plus expected development on reported claims	$ 888
Cumulative number of reported claims \| claim	5,890,375
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 10,316	9,770	8,826	6,662
Auto \| Accident Year 2014
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	12,121	12,220	12,166
IBNR reserves plus expected development on reported claims	$ 1,603
Cumulative number of reported claims \| claim	6,335,312
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 10,518	9,586	7,312
Auto \| Accident Year 2015
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	13,466	13,521
IBNR reserves plus expected development on reported claims	$ 2,963
Cumulative number of reported claims \| claim	6,754,829
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 10,503	8,027
Auto \| Accident Year 2016
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	14,265
IBNR reserves plus expected development on reported claims	$ 5,896
Cumulative number of reported claims \| claim	6,572,689
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 8,369
Homeowners
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	18,251
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	16,577
All outstanding liabilities before 2012, net of reinsurance	187
Liabilities for claims and claim adjustment expenses, net of reinsurance	1,861
Homeowners \| Accident Year 2012
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	3,891	3,913	3,930	3,915	3,833
IBNR reserves plus expected development on reported claims	$ 63
Cumulative number of reported claims \| claim	1,003,156
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 3,828	3,802	3,742	3,606	$ 2,942
Homeowners \| Accident Year 2013
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	3,135	3,156	3,163	3,091
IBNR reserves plus expected development on reported claims	$ 97
Cumulative number of reported claims \| claim	682,525
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 3,038	2,991	2,878	$ 2,283
Homeowners \| Accident Year 2014
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	3,646	3,644	3,600
IBNR reserves plus expected development on reported claims	$ 172
Cumulative number of reported claims \| claim	764,101
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 3,474	3,358	$ 2,730
Homeowners \| Accident Year 2015
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	3,615	3,565
IBNR reserves plus expected development on reported claims	$ 323
Cumulative number of reported claims \| claim	717,025
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 3,293	$ 2,584
Homeowners \| Accident Year 2016
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of reinsurance	3,964
IBNR reserves plus expected development on reported claims	$ 1,020
Cumulative number of reported claims \| claim	755,683
Cumulative paid claims and allocated claims adjustment expenses, net of reinsurance	$ 2,944

Reserve for Property-Liability Insurance Claims and Claims Expense (Details 4)	Dec. 31, 2016
Auto
Claims Development [Line Items]
1 year	60.20%
2 years	19.10%
3 years	8.00%
4 years	5.20%
5 years	3.10%
Homeowners
Claims Development [Line Items]
1 year	74.20%
2 years	19.10%
3 years	2.80%
4 years	1.40%
5 years	0.70%

Reserve for Property-Liability Insurance Claims and Claims Expense (Details 5) $ in Millions	Dec. 31, 2016 USD ($)
Claims Development [Line Items]
Net outstanding liabilities:	$ 19,066
Unallocated loss adjustment expenses	933
Reinsurance recoverable:	6,184
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claim Adjustment Expense, Other Reconciling Item	2
Gross reserve for property-liability insurance claims and claims expense	25,250
Discontinued Lines and Coverages
Claims Development [Line Items]
Net outstanding liabilities:	1,382
Reinsurance recoverable:	508
Gross reserve for property-liability insurance claims and claims expense	800
Auto insurance
Claims Development [Line Items]
Net outstanding liabilities:	12,961
Reinsurance recoverable:	5,422
Homeowners insurance
Claims Development [Line Items]
Net outstanding liabilities:	1,861
Reinsurance recoverable:	9
Other personal lines
Claims Development [Line Items]
Net outstanding liabilities:	1,310
Reinsurance recoverable:	212
Commercial lines
Claims Development [Line Items]
Net outstanding liabilities:	597
Reinsurance recoverable:	21
Other business lines
Claims Development [Line Items]
Net outstanding liabilities:	22
Reinsurance recoverable:	$ 10

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 12,239	$ 12,247
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Premium deficiency reserve	0	0
Structured settlement annuities
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 6,681	6,673
Structured settlement annuities \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.90%
Structured settlement annuities \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	9.00%
Other immediate fixed annuities
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 1,941	2,041
Other immediate fixed annuities \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	0.00%
Other immediate fixed annuities \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	11.50%
Traditional life insurance
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 2,643	2,584
Traditional life insurance \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.50%
Traditional life insurance \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	11.30%
Accident and health insurance
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 873	844
Accident and health insurance \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	3.00%
Accident and health insurance \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	7.00%
Other
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 101	$ 105
Other \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.00%
Other \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	5.80%

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Contractholder funds
Total contractholder funds	$ 20,260	$ 21,295	$ 22,529	$ 24,304
Interest-sensitive life insurance
Contractholder funds
Total contractholder funds	$ 8,062	7,975
Key contract provisions relating to contractholder funds:
Period for withdrawal or surrender charges	20 years
Equity-indexed life insurance \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.00%
Equity-indexed life insurance \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	10.50%
Other life insurance \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	1.00%
Other life insurance \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	6.00%
Fixed annuities
Contractholder funds
Total contractholder funds	$ 11,933	12,974
Key contract provisions relating to contractholder funds:
Percent of fixed annuities subject to market value adjustment for discretionary withdrawals	17.90%
Fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Period for withdrawal or surrender charges	10 years
Immediate Fixed Annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.00%
Immediate Fixed Annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	9.80%
Equity-indexed fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	(8.00%)
Equity-indexed fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	13.30%
Other fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.10%
Other fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	6.00%
Funding agreements backing medium-term notes
Contractholder funds
Total contractholder funds	$ 0	85
Other investment contracts
Contractholder funds
Total contractholder funds	$ 265	$ 261
Other investment contracts \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	1.50%
Other investment contracts \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	10.30%

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Contractholder funds activity
Balance, beginning of year	$ 21,295	$ 22,529	$ 24,304
Classified as held for sale, beginning balance	0	0	10,945
Total, including those classified as held for sale		21,295	22,529	$ 35,249
Deposits	1,164	1,203	1,333
Interest credited	722	760	919
Benefits	(966)	(1,077)	(1,197)
Surrenders and partial withdrawals	(1,053)	(1,278)	(2,273)
Maturities of and interest payments on institutional products	(86)	(1)	(2)
Contract charges	(829)	(818)	(881)
Net transfers from separate accounts	5	7	7
Other adjustments	8	(30)	36
Sold in LBL disposition	0	0	(10,662)
Balance, end of year	$ 20,260	$ 21,295	$ 22,529

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 4) - Variable annuities - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Variable annuity contracts with guarantees
Account balances of separate accounts with guarantees, invested in equity, fixed income and balanced mutual funds	$ 2,930	$ 3,220
Account balances of separate accounts with guarantees, invested in money market mutual funds	364	341
In the event of death
Variable annuity contracts with guarantees
Separate account value	3,298	3,560
Net amount at risk	$ 585	$ 675
Average attained age of contractholders	70 years	69 years
At annuitization (includes income benefit guarantees)
Variable annuity contracts with guarantees
Separate account value	$ 915	$ 967
Net amount at risk	265	281
For cumulative periodic withdrawals
Variable annuity contracts with guarantees
Separate account value	267	294
Net amount at risk	10	10
Accumulation at specified dates
Variable annuity contracts with guarantees
Separate account value	310	371
Net amount at risk	$ 26	$ 31
Weighted average waiting period until guarantee date	3 years	4 years

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	$ 366	$ 350
Less reinsurance recoverables	222	234
Net balance at beginning of period	144	116
Incurred guarantee benefits	37	28
Paid guarantee benefits	0	0
Net change	37	28
Net balance at end of period	181	144
Plus reinsurance recoverables	184	222
Balance at end of period	365	366
Liability for guarantees related to death benefits and interest-sensitive life products
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	223	195
Less reinsurance recoverables	106	98
Net balance at beginning of period	117	97
Incurred guarantee benefits	26	20
Paid guarantee benefits	0	0
Net change	26	20
Net balance at end of period	143	117
Plus reinsurance recoverables	101	106
Balance at end of period	244	223
Liability for guarantees related to income benefits
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	68	95
Less reinsurance recoverables	64	91
Net balance at beginning of period	4	4
Incurred guarantee benefits	0	0
Paid guarantee benefits	0	0
Net change	0	0
Net balance at end of period	4	4
Plus reinsurance recoverables	40	64
Balance at end of period	44	68
Liability for guarantees related to accumulation and withdrawal benefits
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	75	60
Less reinsurance recoverables	52	45
Net balance at beginning of period	23	15
Incurred guarantee benefits	11	8
Paid guarantee benefits	0	0
Net change	11	8
Net balance at end of period	34	23
Plus reinsurance recoverables	43	52
Balance at end of period	$ 77	$ 75

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 6) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Liabilities for guarantees:
Liabilities for guarantees on long-duration contracts	$ 365	$ 366	$ 350
In the event of death \| Variable annuities
Liabilities for guarantees:
Liabilities for guarantees on long-duration contracts	100	105	96
At annuitization (includes income benefit guarantees) \| Variable annuities
Liabilities for guarantees:
Liabilities for guarantees on long-duration contracts	40	65	92
Accumulation at specified dates \| Variable annuities
Liabilities for guarantees:
Liabilities for guarantees on long-duration contracts	34	38	32
For cumulative periodic withdrawals \| Variable annuities
Liabilities for guarantees:
Liabilities for guarantees on long-duration contracts	9	14	13
Other Guarantees [Member] \| Variable annuities
Liabilities for guarantees:
Liabilities for guarantees on long-duration contracts	$ 182	$ 144	$ 117

Schedule of Effects of Reinsurance Premiums for Insurance Companies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property-liability insurance premiums earned
Direct	$ 34,015	$ 32,915	$ 31,858
Assumed	863	890	674
Ceded	(1,296)	(1,338)	(1,446)
Net amount	33,582	32,467	31,086
Life and annuity premiums and contract charges
Life and annuity premiums and contract charges, net of reinsurance	2,275	2,158	2,157
Property-liability insurance premiums earned
Property-liability insurance premiums written
Direct	32,614	31,924	30,686
Assumed	47	39	48
Ceded	(1,061)	(1,092)	(1,120)
Property-liability insurance premiums written, net of reinsurance	31,600	30,871	29,614
Property-liability insurance premiums earned
Direct	32,249	31,274	29,914
Assumed	45	41	45
Ceded	(987)	(1,006)	(1,030)
Net amount	31,307	30,309	28,929
Life and annuity premiums and contract charges
Life and annuity premiums and contract charges
Direct	1,766	1,641	1,944
Assumed	818	849	629
Ceded	(309)	(332)	(416)
Life and annuity premiums and contract charges, net of reinsurance	$ 2,275	$ 2,158	$ 2,157

Reinsurance Property Liability (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	$ 8,745	$ 8,518
Property-Liability
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	6,280	5,980
Reinsurance recoverables related to losses paid by the Company and billed to reinsurers	93	86
Reinsurance recoverables related to ceded unpaid losses	6,184	5,892	$ 5,694	$ 4,664
Maximum amount due from any single reinsurer not separately disclosed	35	32
Discontinued Lines and Coverages
Reinsurance Retention Policy [Line Items]
Allowance for uncollectible reinsurance	84	80
Westport Insurance Corporation \| Property-Liability
Reinsurance Retention Policy [Line Items]
Largest reinsurance recoverable from a single reinsurer	$ 61	$ 62

Reinsurance Industry pools and facilities (Details)	6 Months Ended	12 Months Ended				24 Months Ended
Reinsurance Industry pools and facilities (Details)	Jun. 30, 2016 USD ($)	May 31, 2017 USD ($) hurricane	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2017 USD ($)
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net			$ 8,745,000,000	$ 8,518,000,000
Cash and invested assets			108,610,000,000	104,656,000,000	$ 108,479,000,000
Accumulated deficit			(40,678,000,000)	(39,413,000,000)
Ceded premium earned			1,296,000,000	1,338,000,000	1,446,000,000
Michigan Catastrophic Claim Association
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net			$ 4,950,000,000	4,660,000,000
Reinsurance increase, percentage			6.00%
Cash and invested assets	$ 18,480,000,000
Accumulated deficit	1,740,000,000
Retained earnings accumulated deficit increase (decrease)	$ 42,270,000,000
National Flood Insurance Program
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net			$ 77,000,000	27,000,000
Ceded premium earned			274,000,000	293,000,000	312,000,000
Ceded losses incurred			537,000,000	120,000,000	38,000,000
New Jersey Unsatisfied Claim and Judgment Fund
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net			506,000,000	500,000,000
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed prior to January 1, 1991			75,000
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed from January 1, 1991 to December 31, 2004			75,000
Maximum reimbursement to insurers for medical benefits paid under personal injury protection coverage.			250,000
Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net			0
Ceded premium earned			12,000,000	13,000,000	11,000,000
Ceded losses incurred			$ 0	$ 0	$ 0
Scenario, Forecast \| Michigan Catastrophic Claim Association
Reinsurance Retention Policy [Line Items]
Retention level per claim						$ 555,000	$ 545,000
Term of catastrophe reinsurance agreement contract						2 years	2 years
Scenario, Forecast \| Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Percent of losses in excess of retention level to be reimbursed		90.00%
Retention level for losses related to 2 largest hurricanes		$ 58,000,000
Number of storms \| hurricane		2
Retention level for losses related to other hurricanes		$ 19,000,000
Maximum Retention level for losses related to hurricanes		$ 185,000,000

Reinsurance Catastrophe reinsurance (Details) $ in Millions	7 Months Ended	12 Months Ended
Reinsurance Catastrophe reinsurance (Details) $ in Millions	Dec. 31, 2015 USD ($) layer	Dec. 31, 2016 USD ($) contract limit state reinstatement	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 500
Limit of aggregate losses under aggregate excess agreement		4,550
Ceded premium earned		1,296	$ 1,338	$ 1,446
Reinsurance recoverables, net	$ 8,518	$ 8,745	8,518
Castle Key Insurance Company and Subsidiaries Agreement
Reinsurance Retention Policy [Line Items]
Number of separate catastrophe reinsurance agreements coordinating coverage for excess losses for Castle Key \| contract		4
Catastrophe Reinsurance First Four Layers
Reinsurance Retention Policy [Line Items]
Number of layers subject to reinstatement in which catastrophe reinsurance agreement contracts are placed \| layer	3
Catastrophe Reinsurance, Six And Ninth Layer
Reinsurance Retention Policy [Line Items]
Number of reinstatements each year for each contract \| reinstatement		1
Term of catastrophe reinsurance agreement contract		7 years
Property Claims Services Excess Catastrophe Reinsurance Agreement Coverage
Reinsurance Retention Policy [Line Items]
Number of states covered by reinsurance agreement \| state		28
New Jersey Agreement
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 400
Contracts number \| contract		3
New Jersey Agreement Contract One
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 169
Number of reinstatements each year for each contract \| reinstatement		1
Retention percentage of reinsurance limit		31.67%
New Jersey Agreement Contract Two
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 162
Number of reinstatements each year for each contract \| reinstatement		1
Retention percentage of reinsurance limit		31.66%
New Jersey Agreement Contract Three
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 150
Number of reinstatements each year for each contract \| reinstatement		1
Retention percentage of reinsurance limit		31.67%
Pennsylvania Agreement
Reinsurance Retention Policy [Line Items]
Term of catastrophe reinsurance agreement contract		3 years
Pennsylvania Agreement Three Limits
Reinsurance Retention Policy [Line Items]
Number of limits \| limit		3
Pennsylvania Agreement Two Limits
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 100
Limit of aggregate losses under aggregate excess agreement		$ 100
Contracts number \| contract		1
Retention percentage of reinsurance limit		95.00%
Number of limits \| limit		2
Kentucky Agreement
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 5
Limit of aggregate losses under aggregate excess agreement		$ 25
Term of catastrophe reinsurance agreement contract		3 years
Contracts number \| contract		1
Retention percentage of reinsurance limit		95.00%
Number of limits \| limit		2
E&S Earthquake Agreement
Reinsurance Retention Policy [Line Items]
Contracts number \| contract		1
Catastrophe insurance, quota share basis, percentage		100.00%
Florida Excess Catastrophe Reinsurance agreement
Reinsurance Retention Policy [Line Items]
Contracts number \| contract		5
Ceded premium earned		$ 381	414	437
Catastrophe reinsurance aggregate, loss limit per contract year, percent		90.00%
Catastrophe Reinsurance First Five Layers
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit		31.70%
Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Ceded premium earned		$ 12	$ 13	$ 11
Reinsurance recoverables, net		$ 0
Sixth
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit		95.00%
Catastrophe Reinsurance Layer, One to Six
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 3,070
Ninth
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		3,750
Limit of aggregate losses under aggregate excess agreement		$ 131
Catastrophe reinsurance aggregate, loss limit per contract year, percent		29.00%
Per occurrence limit		$ 446
Property Claims Services Class B Excess Catastrophe Reinsurance Agreement Coverage
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		3,220
Limit of aggregate losses under aggregate excess agreement		$ 150
Retention percentage of reinsurance limit		44.00%
Per occurrence limit		$ 338
Property Claims Services Class A Excess Catastrophe Reinsurance Agreement Coverage
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		3,750
Limit of aggregate losses under aggregate excess agreement		$ 200
Retention percentage of reinsurance limit		45.00%
Per occurrence limit		$ 447
Property Claims Services Class D Excess Catastrophe Reinsurance Agreement Coverage with Portion of Seventh Layer
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		3,150
Limit of aggregate losses under aggregate excess agreement		$ 305
Retention percentage of reinsurance limit		51.00%
Per occurrence limit		$ 603
Property Claims Services Class C Excess Catastrophe Reinsurance Agreement Coverage with Portion of Ninth Layer
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		3,750
Limit of aggregate losses under aggregate excess agreement		$ 115
Retention percentage of reinsurance limit		26.00%
Per occurrence limit		$ 447
Property Claims Services Class B Excess Catastrophe Reinsurance Agreement Coverage with Portion of Tenth Layer
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		4,200
Limit of aggregate losses under aggregate excess agreement		$ 330
Retention percentage of reinsurance limit		95.00%
Per occurrence limit		$ 347
2014-1 PCS
Reinsurance Retention Policy [Line Items]
Number of states covered by reinsurance agreement \| state		29
Gap Fill
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 2,750
Limit of aggregate losses under aggregate excess agreement		$ 175
Minimum
Reinsurance Retention Policy [Line Items]
Catastrophe reinsurance agreement term, layer		1 year
Maximum
Reinsurance Retention Policy [Line Items]
Catastrophe reinsurance agreement term, layer		7 years

Reinsurance Catastrophe reinsurance Florida (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) hurricane
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 4,550
Retention	$ 500
Number of hurricanes \| hurricane	2
Florida Excess Catastrophe Reinsurance agreement
Reinsurance Retention Policy [Line Items]
Catastrophe reinsurance aggregate, loss limit per contract year, percent	90.00%
Catastrophe reinsurance loss amount	$ 191
Florida Excess Catastrophe Reinsurance Agreement, Provisional
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	40
Retention	$ 20
Catastrophe reinsurance aggregate, percent	100.00%
Florida Excess Catastrophe Reinsurance Agreement, Personal Property Lines
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 254
Retention	20
Florida Excess Catastrophe Reinsurance Agreement, Two Largest Hurricanes
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	60
Retention	20
Property Claims Services Class C Excess Catastrophe Reinsurance Agreement Coverage with Portion of Ninth Layer
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	115
Retention	3,750
Sanders Re 2014-2 contract
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	200
Retention	60
Catastrophe reinsurance loss amount	$ 425
Catastrophe reinsurance aggregate, percent	100.00%

Reinsurance Asbestos, environmental and other, Allstate Financial (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) reinsurer	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	$ 8,745	$ 8,518
Life insurance in force ceded to unaffiliated reinsurers	90,011	93,326	$ 98,165
Lloyds of London
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	$ 174	183
Allstate Financial
Reinsurance Retention Policy [Line Items]
Percent of morbidity risk ceded for term-life insurance policies	90.00%
Number of unaffiliated reinsurers \| reinsurer	14
Reinsurance recoverables, net	$ 2,468	2,539
Gross life insurance in force	442,360
Life insurance in force ceded to unaffiliated reinsurers	90,010
Allstate Financial \| Prudential
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	1,410	1,440
Allstate Financial \| Citigroup Subsidiaries and Scottish Re
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	144	148
Life and annuity premiums and contract charges \| Allstate Financial \| Prudential
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	78	94	109
Life and annuity contract benefits
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	208	219	356
Life and annuity contract benefits \| Allstate Financial \| Prudential
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	21	40	36
Interest credited to contractholder funds
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	26	25	26
Interest credited to contractholder funds \| Allstate Financial \| Prudential
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	20	21	21
Operating costs and expenses \| Allstate Financial \| Prudential
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	15	$ 18	$ 20
LBL
Reinsurance Retention Policy [Line Items]
Investments held by trust	$ 5,940
Reinsurer Concentration Risk \| A- \| Allstate Financial
Reinsurance Retention Policy [Line Items]
Concentration risk, percentage	92.00%	92.00%

Reinsurance Retention limits by period of policy issuance (Details) - Allstate Financial - USD ($) $ in Millions	1 Months Ended	9 Months Ended	45 Months Ended	48 Months Ended	106 Months Ended
	Aug. 31, 1998	Dec. 31, 2015	Mar. 31, 2011	Mar. 31, 2015	Jun. 30, 2007
Reinsurance Retention Policy [Line Items]
Retention level per claim	$ 1		$ 5		$ 2
Retention level for contracts issued to individuals age 70 and over			3
Retention level for certain large contracts meeting specific criteria			$ 10		$ 5
Single life
Reinsurance Retention Policy [Line Items]
Retention level per claim		$ 2		$ 5
Retention level for contracts issued to individuals age 70 and over				3
Retention level for certain large contracts meeting specific criteria				10
Joint life
Reinsurance Retention Policy [Line Items]
Retention level per claim				8
Retention level for certain large contracts meeting specific criteria				$ 10

Reinsurance Reinsurance recoverables on paid and unpaid benefits (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	$ 8,745	$ 8,518
Allstate Financial
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	2,468	2,539
Allstate Financial \| Annuities
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	1,424	1,457
Allstate Financial \| Life insurance
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	860	897
Allstate Financial \| Other
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables, net	$ 184	$ 185

Deferred Policy Acquisition and Sales Inducement Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred policy acquisition costs
Balance, beginning of year	$ 3,861	$ 3,525	$ 3,372
Classified as held for sale, beginning balance				$ 743
Total, including those classified as held for sale				4,115
Acquisition costs deferred	4,717	4,596	4,350
Amortization charged to income	(4,550)	(4,364)	(4,135)
Effect of unrealized gains and losses	(74)	104	(98)
Sold in LBL disposition			(707)
Balance, end of year	3,954	3,861	3,525
DSI activity relates to fixed annuities and interest-sensitive life contracts
Balance, beginning of year	45	44	42
Classified as held for sale, beginning balance	0	0	28
Total, including those classified as held for sale		45	44	70
Sales inducements deferred	1	3	4
Amortization charged to income	(5)	(4)	(4)
Effect of unrealized gains and losses	(1)	2	(3)
Sold in LBL disposition	0	0	(23)
Balance, end of year	40	45	44
Allstate Financial
Deferred policy acquisition costs
Balance, beginning of year	1,832	1,705	1,747
Classified as held for sale, beginning balance				743
Total, including those classified as held for sale				2,490
Acquisition costs deferred	291	285	280
Amortization charged to income	(283)	(262)	(260)
Effect of unrealized gains and losses	(74)	104	(98)
Sold in LBL disposition			(707)
Balance, end of year	1,766	1,832	1,705
Property-Liability
Deferred policy acquisition costs
Balance, beginning of year	2,029	1,820	1,625
Classified as held for sale, beginning balance				0
Total, including those classified as held for sale				$ 1,625
Acquisition costs deferred	4,426	4,311	4,070
Amortization charged to income	(4,267)	(4,102)	(3,875)
Effect of unrealized gains and losses	0	0	0
Sold in LBL disposition			0
Balance, end of year	$ 2,188	$ 2,029	$ 1,820

Capital Structure, Debt (Details) - USD ($) $ in Millions	12 Months Ended
Capital Structure, Debt (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 08, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 6,347		$ 5,124
Long-term debt total principal	6,408		5,175
Debt issuance costs	(61)		(51)
Short-term debt	0		0
Total debt	$ 6,347		5,124
Redemption price as percentage of principal amount plus accrued and unpaid interest	100.00%
6.75% Senior Debentures, due 2018
Debt Instrument [Line Items]
Long-term debt	$ 176		176
Note stated interest rate (as a percent)	6.75%
7.45% Senior Notes, due 2019
Debt Instrument [Line Items]
Long-term debt	$ 317		317
Note stated interest rate (as a percent)	7.45%
3.15% Senior Notes, due 2023
Debt Instrument [Line Items]
Long-term debt	$ 500		500
Note stated interest rate (as a percent)	3.15%
3.28% Senior Notes, due 2026
Debt Instrument [Line Items]
Long-term debt	$ 550		0
Note stated interest rate (as a percent)	3.28%	3.28%
6.125% Senior Notes, due 2032
Debt Instrument [Line Items]
Long-term debt	$ 159		159
Note stated interest rate (as a percent)	6.125%
5.35% Senior Notes due 2033
Debt Instrument [Line Items]
Long-term debt	$ 323		323
Note stated interest rate (as a percent)	5.35%
5.55% Senior Notes due 2035
Debt Instrument [Line Items]
Long-term debt	$ 546		546
Note stated interest rate (as a percent)	5.55%
5.95% Senior Notes, due 2036
Debt Instrument [Line Items]
Long-term debt	$ 386		386
Note stated interest rate (as a percent)	5.95%
6.90% Senior Debentures, due 2038
Debt Instrument [Line Items]
Long-term debt	$ 165		165
Note stated interest rate (as a percent)	6.90%
5.20% Senior Notes due 2042
Debt Instrument [Line Items]
Long-term debt	$ 62		62
Note stated interest rate (as a percent)	5.20%
4.50% Senior Notes, due 2043
Debt Instrument [Line Items]
Long-term debt	$ 500		500
Note stated interest rate (as a percent)	4.50%
4.20% Senior Notes, due 2046
Debt Instrument [Line Items]
Long-term debt	$ 700		0
Note stated interest rate (as a percent)	4.20%	4.20%
5.10% Subordinated Debentures, due 2053
Debt Instrument [Line Items]
Long-term debt	$ 500		500
Note stated interest rate (as a percent)	5.10%
5.75% Subordinated Debentures, due 2053
Debt Instrument [Line Items]
Long-term debt	$ 800		800
Note stated interest rate (as a percent)	5.75%
6.125% Junior Subordinated Debentures, due 2067
Debt Instrument [Line Items]
Long-term debt	$ 224		241
Note stated interest rate (as a percent)	6.125%
6.50% Junior Subordinated Debentures, due 2067
Debt Instrument [Line Items]
Long-term debt	$ 500		$ 500
Note stated interest rate (as a percent)	6.50%

Capital Structure, Debt Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Total debt outstanding by maturity:
2017	$ 0
2018	176
2019	317
2020	0
2021	0
Thereafter	5,915
Total long-term debt principal	$ 6,408	$ 5,175

Capital Structure, Narrative (Details)	1 Months Ended		3 Months Ended		12 Months Ended
Capital Structure, Narrative (Details)	Jun. 30, 2014 USD ($) shares	Mar. 31, 2014 USD ($) shares	Jun. 30, 2014 shares	Mar. 31, 2014 shares	Dec. 31, 2016 USD ($) director $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($)	Dec. 08, 2016 USD ($)
Class of Stock [Line Items]
Repurchase of debt					$ 17,000,000	$ 11,000,000	$ 10,000,000
Loss on extinguishment of debt					0	0	1,000,000
Long-term debt					6,347,000,000	5,124,000,000
Unsecured revolving credit facility					1,000,000,000.00
Commercial Paper maximum borrowing capacity					1,000,000,000.00
Additional borrowing capacity under credit facility increase provision					$ 500,000,000
Maximum debt to capital ratio allowed under credit facility covenant (as a percent)					37.50%
Credit facility, amount outstanding					$ 0	0
Interest paid on debt					287,000,000	289,000,000	$ 332,000,000
Other liabilities and accrued expenses					$ 132,000,000	$ 107,000,000
Common stock
Common stock, shares issued (in shares) \| shares					900,000,000	900,000,000
Common stock, shares outstanding (in shares) \| shares					366,000,000	381,000,000
Treasury stock, shares (in shares) \| shares					534,000,000	519,000,000
Reacquired shares (in shares) \| shares					20,000,000
Average cost of reacquired shares (in dollars per share) \| $ / shares					$ 66.45
Reissued net shares under equity incentive plans (in shares) \| shares					5,000,000
Preferred stock
Preferred stock, par value (in dollars per share) \| $ / shares					$ 1	$ 1
Preferred stock, shares issued (in shares) \| shares					72,200	72,200
Aggregate liquidation preference					$ 1,805,000,000
Period of issuance of common stock prior to dividend declaration date during which dividend declaration is prohibited					90 days
Noncumulative Perpetual Preferred Stock
Class of Stock [Line Items]
Period after occurrence of certain tax and rating agency events in which redemption of debt in whole permissible					90 days
Preferred stock
Preferred stock, par value (in dollars per share) \| $ / shares					$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares					25,000
Preferred stock, redemption price (in dollars per share) \| $ / shares					$ 25,000
Series E
Preferred stock
Preferred stock, shares issued (in shares) \| shares		29,900		29,900	29,900
Dividend rate				6.625%	6.625%
Aggregate liquidation preference		$ 747,500,000			$ 747,500,000
Series F
Preferred stock
Preferred stock, shares issued (in shares) \| shares	10,000		10,000		10,000
Dividend rate			6.25%		6.25%
Aggregate liquidation preference	$ 250,000,000				$ 250,000,000
Minimum
Preferred stock
Collective risk-based capital ratios of subsidiaries as a percentage of net written premiums of insurance business					80.00%
Percentage of decline in consolidated shareholders' equity from benchmark quarter					20.00%
Maximum
Preferred stock
Risk-based capital ratios as a percentage of action level risk-based capital					175.00%
Percentage by which consolidated shareholders' equity should increase or decrease to avoid restriction on dividends					20.00%
Maximum \| Noncumulative Perpetual Preferred Stock
Preferred stock
Additional members of the board of directors \| director					2
3.28% Senior Notes, due 2026
Class of Stock [Line Items]
Debt instrument, face amount								$ 550,000,000
Note stated interest rate (as a percent)					3.28%			3.28%
Long-term debt					$ 550,000,000	$ 0
4.20% Senior Notes, due 2046
Class of Stock [Line Items]
Debt instrument, face amount								$ 700,000,000
Note stated interest rate (as a percent)					4.20%			4.20%
Long-term debt					$ 700,000,000	0
5.10% Subordinated Debentures, due 2053
Class of Stock [Line Items]
Note stated interest rate (as a percent)					5.10%
Interest rate spread over LIBOR (as a percent)					3.165%
Long-term debt					$ 500,000,000	500,000,000
5.75% Subordinated Debentures, due 2053
Class of Stock [Line Items]
Note stated interest rate (as a percent)					5.75%
Interest rate spread over LIBOR (as a percent)					2.938%
Long-term debt					$ 800,000,000	800,000,000
Subordinated Debentures
Class of Stock [Line Items]
Minimum principal outstanding amount for redemption of debt in whole or in part					$ 25,000,000
Period after occurrence of certain tax and rating agency events in which redemption of debt in whole permissible					90 days
Maximum period for deferment of interest payment					5 years
6.50% Junior Subordinated Debentures, due 2067
Class of Stock [Line Items]
Note stated interest rate (as a percent)					6.50%
Interest rate spread over LIBOR (as a percent)					2.12%
Long-term debt					$ 500,000,000	500,000,000
6.125% Junior Subordinated Debentures, due 2067
Class of Stock [Line Items]
Note stated interest rate (as a percent)					6.125%
Interest rate spread over LIBOR (as a percent)					1.935%
Long-term debt					$ 224,000,000	241,000,000
The Debentures
Class of Stock [Line Items]
Maximum period for deferment of interest payment					10 years
Reserved common stock authorized and unissued for debentures obligations (in shares) \| shares					75,000,000
7.45% Senior Notes, due 2019
Class of Stock [Line Items]
Note stated interest rate (as a percent)					7.45%
Long-term debt					$ 317,000,000	317,000,000
Threshold percentage of repurchase or redemption of outstanding principal debentures for non applicability of promises and covenants contained in the new RCC					10.00%
Period within which threshold percentage of outstanding principal of debentures is to be purchased for non applicability of promises and covenants contained in the new RCC					1 year
Specified period within which percentage of outstanding principal of debentures is to be purchased for non applicability of promises and covenants contained in the new RCC					10 years
7.45% Senior Notes, due 2019 \| Maximum
Class of Stock [Line Items]
Percentage of repurchase or redemption of outstanding principal debentures within specified period for non applicability of promises and covenants contained in the new RCC					25.00%
Commercial Paper
Class of Stock [Line Items]
Amount of commercial paper outstanding					$ 0	0
Limited Partnership
Class of Stock [Line Items]
Other liabilities and accrued expenses					45,000,000	89,000,000
Debt Related to Other Investments
Class of Stock [Line Items]
Other liabilities and accrued expenses					$ 87,000,000	$ 18,000,000

Capital Structure, Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		12 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)					72,200	72,200
Aggregate liquidation preference					$ 1,805.0
Aggregate Dividend Payment					$ 116.0	$ 116.0	$ 104.0
Series A
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)					11,500
Aggregate liquidation preference					$ 287.5
Dividend rate					5.625%
Dividends payable, amount per share (in usd per share)					$ 1.41	$ 1.41	$ 1.41
Aggregate Dividend Payment					$ 16.0	$ 16.0	$ 16.0
Series C
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)					15,400
Aggregate liquidation preference					$ 385.0
Dividend rate					6.75%
Dividends payable, amount per share (in usd per share)					$ 1.69	$ 1.69	$ 1.69
Aggregate Dividend Payment					$ 26.0	$ 26.0	$ 26.0
Series D
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)					5,400
Aggregate liquidation preference					$ 135.0
Dividend rate					6.625%
Dividends payable, amount per share (in usd per share)					$ 1.66	$ 1.66	$ 1.79
Aggregate Dividend Payment					$ 9.0	$ 9.0	$ 10.0
Series E
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)		29,900		29,900	29,900
Aggregate liquidation preference		$ 747.5			$ 747.5
Dividend rate				6.625%	6.625%
Dividends payable, amount per share (in usd per share)					$ 1.66	$ 1.66	$ 1.44
Aggregate Dividend Payment					$ 49.0	$ 49.0	$ 43.0
Series F
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)	10,000		10,000		10,000
Aggregate liquidation preference	$ 250.0				$ 250.0
Dividend rate			6.25%		6.25%
Dividends payable, amount per share (in usd per share)					$ 1.56	$ 1.56	$ 0.92
Aggregate Dividend Payment					$ 16.0	$ 16.0	$ 9.0

Company Restructuring (Details) - USD ($) $ in Millions	12 Months Ended
Company Restructuring (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restructuring and Related Activities [Abstract]
Restructuring and related charges	$ 30	$ 39	$ 18

Company Restructuring (Details 2) $ in Millions	12 Months Ended
Company Restructuring (Details 2) $ in Millions	Dec. 31, 2016 USD ($)
Restructuring Reserve
Balance as of December 31, 2015	$ 2
Expense incurred	14
Payments applied against liability	(14)
Balance as of December 31, 2016	2
Employee costs
Restructuring Reserve
Balance as of December 31, 2015	1
Expense incurred	8
Payments applied against liability	(9)
Balance as of December 31, 2016	0
Cumulative amount incurred to date for active programs	78
Exit costs
Restructuring Reserve
Balance as of December 31, 2015	1
Expense incurred	6
Payments applied against liability	(5)
Balance as of December 31, 2016	2
Cumulative amount incurred to date for active programs	$ 66

Commitments, Guarantees and Contingent Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Guarantees and Contingent Liabilities
Total rent expense for all leases	$ 147	$ 179	$ 187
Operating leases, future minimum lease payments
2017	122
2018	103
2019	88
2020	71
2021	53
Thereafter	169
Total	$ 606

Commitments, Guarantees and Contingent Liabilities (Details 2) - USD ($)		12 Months Ended
	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2010	Dec. 31, 2008
Loss Contingencies
Proceeds of revenue bonds	$ 680,000,000
FL Citizens
Loss Contingencies
Assessment rate, percent of deficit or prior year premiums		2.00%
Surcharge on policies, deadline for filing prior to imposing		15 days
Emergency assessment maximum percentage of premiums subsequent years, FL OIR		0.00%
LA Citizens
Loss Contingencies
Assessment rate, percent of deficit or prior year premiums		10.00%
Florida Hurricane Catastrophe Fund
Loss Contingencies
Emergency assessment maximum percentage of premiums subsequent years, FL OIR		0.00%
Maximum emergency assessment as percent of premiums, first year		6.00%
Emergency assessment maximum percentage of premiums subsequent years		10.00%
Catastrophe fund, bonds issued				$ 2,000,000,000	$ 676,000,000	$ 625,000,000
Emergency assessment ordered as percent of premiums from January 1, 2007 through December 31, 2010		1.00%
Emergency assessment ordered as percent of premiums after January 1, 2011		1.30%
California Earthquake Authority
Loss Contingencies
CEA capital balance	5,320,000,000
CEA existing reinsurance layer	4,780,000,000
Current estimated maximum CEA assessment	1,660,000,000
CEA capital balance threshold	350,000,000
Estimated maximum second CEA assessment	128,000,000
CEA threshold earthquake losses	12,570,000,000
CEA capital balance to be restored	350,000,000
Projected aggregate claim paying capacity	12,570,000,000
Share of the CEA (as a percent)			12.10%
Maximum possible assessment		$ 217,000,000
Texas Windstorm Insurance Association
Loss Contingencies
Issuance of securities to participating insurers upon utilization of funds set aside		$ 1,000,000,000
Participation ratio		13.00%
New Jersey Unsatisfied Claim and Judgment Fund
Loss Contingencies
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed prior to January 1, 1991		$ 75,000
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed from January 1, 1991 to December 31, 2004		75,000
Maximum reimbursement to insurers for medical benefits paid under personal injury protection coverage.		250,000
Liability for insurance assessments		6,700,000
North Carolina Reinsurance Facility
Loss Contingencies
Fund's surplus to cover future losses	261,100,000
North Carolina Joint Underwriters Association
Loss Contingencies
Plan surplus receivable		2,500,000
Funds surplus in member's equity		28,100,000
North Carolina Insurance Underwriting Association
Loss Contingencies
Maximum possible assessment		$ 1,000,000,000
Funds surplus in member's equity	$ 1,300,000,000
Percentage of surcharge on property insurance policy statewide to be remitted to the plan		10.00%
Guaranty Funds
Loss Contingencies
Liability for insurance assessments		$ 4,000,000	$ 13,000,000
Insurance assessments, premium tax offsets		$ 9,000,000	$ 14,000,000

Commitments, Guarantees and Contingent Liabilities (Details 3) $ in Millions							1 Months Ended	12 Months Ended		24 Months Ended
	Jan. 27, 2017 claim case	Nov. 22, 2016 claim plaintiff	Sep. 02, 2016 claim	May 20, 2016 plaintiff	Jan. 28, 2016 plaintiff defense	Jun. 17, 2015 plaintiff	Dec. 31, 2007 claim	Dec. 31, 2016 USD ($) claim opinion	Dec. 31, 2001 employee	Dec. 31, 2016 USD ($) claim opinion plaintiff defense	Jan. 26, 2017 opinion	Apr. 08, 2016 adjuster	Dec. 31, 2015 USD ($) trial
Guarantees:
Limitations or indemnifications of reinsurance agreements								$ 0		$ 0
Proceedings:
Number of former employee agents plaintiffs seek benefits for \| employee									6,300
Loss contingency, number of plaintiffs (in plaintiffs, in cases)		1		499	10	10			32	459
Number of defenses \| defense					2					2
Loss contingency, number of trials \| trial													2
Reserves for asbestos claims								912		$ 912			$ 960
Reinsurance recoverables for asbestos claims								444		444			458
Reserves for environmental claims								179		179			179
Reinsurance recoverables for environmental claims								$ 40		$ 40			$ 43
Percentage of net asbestos and environmental reserves that were for incurred but not reported estimated losses								57.00%		57.00%			57.00%
Number of class action cases \| claim			2				2
Loss contingency, pending claims, adjusters omitted, number \| adjuster												50
Number of cases pending (in adjusters, in claims) \| claim		2
Loss contingency, number of claims, loss is not probable \| claim								3		3
Loss contingency, opinions, number \| opinion								3		3
Minimum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued								$ 0
Maximum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued								875
Residual guarantee
Guarantees:
Potential leased automobiles residual value								$ 46		$ 46
Guarantee obligations term, low end of range								1 year
Guarantee obligations term, high end of range								4 years
Adjuster Opted Out
Proceedings:
Number of cases pending (in adjusters, in claims) \| adjuster												11
Fair Labor Standards Act
Proceedings:
Number of cases pending (in adjusters, in claims) \| adjuster												105
New York Labor Law
Proceedings:
Number of cases pending (in adjusters, in claims) \| adjuster												137
Against Allstate
Proceedings:
Loss contingency, opinions, number \| opinion								2		2
In Favor of Allstate
Proceedings:
Loss contingency, opinions, number \| opinion								1		1
Signed Releases Knowingly and Voluntarily \| Judicial Ruling
Proceedings:
Loss contingency, number of plaintiffs (in plaintiffs, in cases) \| plaintiff						2
Did Not Sign Releases Knowingly and Voluntarily \| Judicial Ruling
Proceedings:
Loss contingency, number of plaintiffs (in plaintiffs, in cases) \| plaintiff						8
Subsequent Event
Proceedings:
Loss contingency, number of plaintiffs (in plaintiffs, in cases) \| case	3
Loss contingency, opinions, number \| opinion											2
Subsequent Event \| Randy Rosenberg, et al
Proceedings:
Number of class action cases \| claim	1

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of the change in the amount of unrecognized tax benefits
Balance – beginning of year	$ 7	$ 0	$ 0
Increase for tax positions taken in a prior year	0	4	0
Decrease for tax positions taken in a prior year	0	0	0
Increase for tax positions taken in the current year	3	3	0
Decrease for tax positions taken in the current year	0	0	0
Decrease for settlements	0	0	0
Reductions due to lapse of statute of limitations	0	0	0
Balance – end of year	10	7	0
Deferred assets
Unearned premium reserves	819	796
Pension	294	236
Accrued compensation	203	189
Discount on loss reserves	188	203
Difference in tax bases of invested assets	78	202
Other postretirement benefits	64	76
Other assets	118	137
Total deferred assets	1,764	1,839
Deferred liabilities
DAC	(1,211)	(1,157)
Unrealized net capital gains	(529)	(303)
Life and annuity reserves	(324)	(260)
Other liabilities	(187)	(209)
Total deferred liabilities	(2,251)	(1,929)
Net deferred liability	(487)	(90)
Components of income tax expense (benefit)
Current	654	1,033	1,123
Deferred	223	78	263
Total income tax expense	877	1,111	1,386
Net operating loss carryforward	42
Income tax paid	359	1,070	$ 1,070
Current income tax payable	$ 135
Current income tax receivable		$ 59
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation
Statutory federal income tax rate	35.00%	35.00%	35.00%
Tax-exempt income	(1.20%)	(1.00%)	(0.90%)
Tax credits	(1.20%)	(0.90%)	(0.70%)
Sale of subsidiary	0.00%	0.00%	(0.90%)
Other	(0.70%)	0.80%	0.20%
Effective income tax rate (as a percent)	31.90%	33.90%	32.70%
Accounting Standards Update 2014-01
Components of income tax expense (benefit)
Total income tax expense		$ 45

Statutory Financial Information and Dividend Limitations (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Amount per statutory accounting practices
Net income (loss)	$ 1,717	$ 1,770	$ 3,631
Capital and surplus	$ 16,819	16,486
Dividend Limitations
Action level RBC expressed as a multiplier of authorized control level RBC, which if not achieved would require specific actions to be taken	2
Restricted net assets	$ 23,000
Allstate Insurance Company ("AIC")
Amount per statutory accounting practices
Capital and surplus	15,880
Dividend Limitations
Dividends paid	1,900
Maximum amount of dividends without prior approval	$ 1,560
Advance notice period required for payment of dividend in excess of amount available for distribution without prior approval	30 days
Unassigned surplus excluding unrealized appreciation from investments	$ 10,260
Authorized control level RBC	2,560
Property-Liability
Amount per statutory accounting practices
Net income (loss)	1,520	1,826	2,501
Capital and surplus	13,436	13,332
Allstate Financial
Amount per statutory accounting practices
Net income (loss)	197	(56)	$ 1,130
Capital and surplus	$ 3,383	$ 3,154

Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Maximum annual medical cost inflation after retirement for Company's share of retiree medical benefits cost for non Medicare-eligible retirees (as a percent)	5.00%
Items not yet recognized as a component of net periodic cost:
Deferred income tax				$ (487)	$ (90)
Unrecognized pension and other postretirement benefit cost				1,419	1,315
Pension benefits
Components of net periodic cost
Fair value of plan assets	$ 5,353	$ 5,783	$ 5,783	5,650	5,353
Less: Benefit obligation	6,130	6,493	6,493	6,591	6,130
Funded status				(941)	(777)
Items not yet recognized as a component of net periodic cost:
Net actuarial loss (gain)				2,807	2,710
Prior service credit				(310)	(365)
Unrecognized pension and other postretirement benefit cost, pre-tax	2,345	2,345		2,497	2,345
Deferred income tax				(874)	(821)
Unrecognized pension and other postretirement benefit cost				1,623	1,524
Increase (decrease) in defined benefit net actuarial loss arising during the period	$ 97
Percentage of underfunded status relating to the primary employee plans	81.00%
Change in items not yet recognized as a component of defined benefit plans, net periodic cost
Items not yet recognized as a component of net periodic cost – December 31, 2015	$ 2,345
Net actuarial loss (gain) arising during the period	294
Net actuarial (loss) gain amortized to net periodic benefit cost	(201)
Prior service credit arising during the period	0
Prior service credit amortized to net periodic benefit cost	56
Translation adjustment and other	3
Items not yet recognized as a component of net periodic cost – December 31, 2016	2,497	2,345
Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost during 2015
Net actuarial loss (gain)	189
Prior service credit	(56)
Accumulated benefit obligation (ABO)				6,520	6,050
Company's Pension Plans with an ABO in excess of plan assets
Company's pension plans with ABO in excess of plan assets, aggregate projected benefit obligation				6,240	5,810
Company's pension plans with ABO in excess of plan assets, aggregate accumulated benefit obligation				6,180	5,740
Company's pension plans with ABO in excess of plan assets, aggregate fair value of plan assets				5,300	5,020
Defined benefit plans' accrued benefit costs related to certain unfunded and non-qualified plans				$ 141	$ 143
Change in benefit obligation
Benefit obligation, beginning of year	6,130	6,493
Service cost	113	114	96
Interest cost	286	258	262
Participant contributions	1	0
Actuarial loss (gain)	387	(225)
Benefits paid	(301)	(443)
Plan amendments	0	0
Translation adjustment and other	(25)	(67)
Benefit obligation, end of year	6,591	6,130	6,493
Components of net periodic cost
Service cost	113	114	96
Interest cost	286	258	262
Expected return on plan assets	(398)	(424)	(398)
Amortization of:
Prior service credit	(56)	(56)	(58)
Net actuarial loss (gain)	174	190	127
Settlement loss	27	31	54
Net periodic cost (credit)	$ 146	$ 113	$ 83
Weighted average assumptions used to determine net pension cost and net postretirement benefit cost
Discount rate	4.83%	4.10%	5.00%
Rate of increase in compensation levels	3.20%	3.50%	3.50%
Expected long-term rate of return on plan assets	7.30%	7.33%	7.36%
Weighted average assumptions used to determine benefit obligations
Discount rate				4.15%	4.83%
Rate of increase in compensation levels				3.20%	3.20%
Pension plan assets
Fair value of plan assets, beginning of year	$ 5,353	$ 5,783
Actual return on plan assets	491	(43)
Employer contribution	131	125
Benefits paid	(301)	(443)
Translation adjustment and other	(24)	(69)
Fair value of plan assets, end of year	5,650	5,353	$ 5,783
Postretirement benefits
Components of net periodic cost
Fair value of plan assets	0	0		$ 0	$ 0
Less: Benefit obligation	405	575	575	373	405
Funded status				(373)	(405)
Items not yet recognized as a component of net periodic cost:
Net actuarial loss (gain)				(251)	(263)
Prior service credit				(62)	(61)
Unrecognized pension and other postretirement benefit cost, pre-tax	(324)	(324)		(313)	(324)
Deferred income tax				109	115
Unrecognized pension and other postretirement benefit cost				$ (204)	$ (209)
Increase (decrease) in defined benefit net actuarial loss arising during the period	(12)
Change in items not yet recognized as a component of defined benefit plans, net periodic cost
Items not yet recognized as a component of net periodic cost – December 31, 2015	(324)
Net actuarial loss (gain) arising during the period	(14)
Net actuarial (loss) gain amortized to net periodic benefit cost	24
Prior service credit arising during the period	(22)
Prior service credit amortized to net periodic benefit cost	21
Translation adjustment and other	2
Items not yet recognized as a component of net periodic cost – December 31, 2016	(313)	(324)
Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost during 2015
Net actuarial loss (gain)	(24)
Prior service credit	(24)
Change in benefit obligation
Benefit obligation, beginning of year	405	575
Service cost	9	12	10
Interest cost	17	23	23
Participant contributions	16	19
Actuarial loss (gain)	(14)	(158)
Benefits paid	(41)	(54)
Plan amendments	(22)	0
Translation adjustment and other	3	(12)
Benefit obligation, end of year	373	405	575
Components of net periodic cost
Service cost	9	12	10
Interest cost	17	23	23
Expected return on plan assets	0	0	0
Amortization of:
Prior service credit	(21)	(22)	(23)
Net actuarial loss (gain)	(24)	(9)	(22)
Settlement loss	0	0	0
Net periodic cost (credit)	$ (19)	$ 4	$ (12)
Weighted average assumptions used to determine net pension cost and net postretirement benefit cost
Discount rate	4.59%	3.97%	5.11%
Weighted average assumptions used to determine benefit obligations
Discount rate				4.07%	4.56%
Defined benefit plan, assumed health care cost trend rates
Defined Benefit plan, Weighted average health care cost trend rate	6.30%
Defined Benefit plan, ultimate health care cost trend rate in 2038 and thereafter	4.50%
Increase in the total of service and interest cost components of net periodic benefit cost due to one percentage-point increase in assumed health care cost trend rates	$ 2
Increase in APBO due to one percentage-point increase in assumed health care cost trend rates	24
Decrease in APBO due to one percentage-point decrease in assumed health care cost trend rates	2
Decrease in the total of service and interest cost components of net periodic benefit cost due to one percentage-point decrease in assumed health care cost trend rates	21
Pension plan assets
Fair value of plan assets, beginning of year	0
Employer contribution	25	$ 35
Benefits paid	(41)	(54)
Fair value of plan assets, end of year	$ 0	$ 0

Benefit Plans (Details 2) - USD ($) $ in Millions	12 Months Ended
Benefit Plans (Details 2) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Pension benefits
Pension plans' assets
Percentage of total plan assets for primary qualified employee				80.00%
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets				100.00%	100.00%
Notional amount of derivatives, minimum percentage of plan assets	105.00%
Notional amount of derivatives, maximum percentage of plan assets	115.00%
Total plan assets at fair value				$ 5,758	$ 5,501
Total plan assets at fair value, allocation (as a percent)	100.00%	100.00%
Securities lending obligation				(158)	(167)
Other net plan assets				50	19
Total reported plan assets	$ 5,353	$ 5,783	$ 5,783	$ 5,650	5,353
Pension plan assets
Fair value of plan assets, beginning of year	5,353	5,783
Fair value of plan assets, end of year	$ 5,650	$ 5,353	$ 5,783
Expected weighted average long-term rate of return on plan assets	7.30%	7.33%	7.36%
Expected weighted average long-term rate of return on plan assets for the next fiscal year (as a percent)	7.31%
Expected weighted average long-term rate of return on primary employee plan assets for the next fiscal year (as a percent)	7.75%
Expected weighted average long-term rate of return on employee-agent plan assets for the next fiscal year (as a percent)	5.75%
Arithmetic average of the annual actual return on plan assets for the last 10 years (as a percent)				6.50%
Arithmetic average of the annual actual return on plan assets for the last 5 years (as a percent)				8.50%
Cash flows
Defined benefit pension plans, estimated employer contributions in next fiscal year	$ 136
Employer contribution	131	$ 125
Participant contributions	$ 1	$ 0
Estimated future benefit payments
2017				$ 412
2018				421
2019				463
2020				487
2021				521
2022-2026				2,512
Total benefit payments				4,816
Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				360	342
Total plan assets at fair value, allocation (as a percent)	6.30%	6.20%
Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				4,946	4,668
Total plan assets at fair value, allocation (as a percent)	85.90%	84.90%
Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				452	491
Total plan assets at fair value, allocation (as a percent)	7.80%	8.90%
Total reported plan assets	$ 491	$ 505	$ 690	452	491
Pension plan assets
Fair value of plan assets, beginning of year	491	505	690
Actual return on plan assets: Relating to assets sold during the period	(2)	1	(5)
Actual return on plan assets: Relating to assets still held at the reporting date	26	(24)	12
Purchases, sales and settlements, net	(68)	11	(192)
Net transfers in and/or (out) of Level 3	5	(2)	0
Fair value of plan assets, end of year	452	491	505
Postretirement benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total reported plan assets	0	0		0	$ 0
Pension plan assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Cash flows
Employer contribution	25	35
Participant contributions	$ 16	19
Estimated future benefit payments
2017				23
2018				23
2019				24
2020				25
2021				26
2022-2026				137
Total benefit payments				$ 258
Equity securities \| Pension benefits
Pension plans' assets
Percent of total equity securities in primary qualified employee plan	86.00%
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation, minimum	50.00%
Target asset allocation, maximum	68.00%
Actual percentage of plan assets				62.00%	60.00%
Total plan assets at fair value				$ 3,464	$ 3,181
Equity securities \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				155	136
Equity securities \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				3,230	2,945
Equity securities \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				79	100
Total reported plan assets	$ 100	75	237	$ 79	$ 100
Pension plan assets
Fair value of plan assets, beginning of year	100	75	237
Actual return on plan assets: Relating to assets sold during the period	(2)	1	2
Actual return on plan assets: Relating to assets still held at the reporting date	(1)	(5)	2
Purchases, sales and settlements, net	(18)	29	(166)
Net transfers in and/or (out) of Level 3	0	0	0
Fair value of plan assets, end of year	$ 79	100	75
Fixed income securities \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation, minimum	27.00%
Target asset allocation, maximum	37.00%
Actual percentage of plan assets				29.00%	30.00%
U.S. government and agencies \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				$ 315	$ 406
U.S. government and agencies \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				30	72
U.S. government and agencies \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				285	334
U.S. government and agencies \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Municipal \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value					7
Municipal \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value					0
Municipal \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value					0
Municipal \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value					7
Total reported plan assets	$ 7	14	18	0	7
Pension plan assets
Fair value of plan assets, beginning of year	7	14	18
Actual return on plan assets: Relating to assets sold during the period	0	0	0
Actual return on plan assets: Relating to assets still held at the reporting date	0	0	0
Purchases, sales and settlements, net	(7)	(7)	(4)
Net transfers in and/or (out) of Level 3	0	0	0
Fair value of plan assets, end of year	0	7	14
Corporate \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				1,319	1,215
Corporate \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Corporate \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				1,309	1,205
Corporate \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				10	10
Total reported plan assets	10	12	18	10	10
Pension plan assets
Fair value of plan assets, beginning of year	10	12	18
Actual return on plan assets: Relating to assets sold during the period	0	0	0
Actual return on plan assets: Relating to assets still held at the reporting date	0	0	0
Purchases, sales and settlements, net	(5)	0	(6)
Net transfers in and/or (out) of Level 3	5	(2)	0
Fair value of plan assets, end of year	$ 10	10	12
Securities pledged as collateral \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Assets for plan benefits				$ 143	$ 152
Limited partnership interests \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation, minimum	0.00%
Target asset allocation, maximum	14.00%
Actual percentage of plan assets				7.00%	7.00%
Short-term investments \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				$ 265	$ 296
Short-term investments \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				144	112
Short-term investments \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				121	184
Short-term investments \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				$ 0	$ 0
Short-term investments and other \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	0.00%
Actual percentage of plan assets				2.00%	3.00%
Real estate funds \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				$ 100	$ 104
Real estate funds \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Real estate funds \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Real estate funds \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				100	104
Total reported plan assets	$ 104	154	197	100	104
Pension plan assets
Fair value of plan assets, beginning of year	104	154	197
Actual return on plan assets: Relating to assets sold during the period	0	0	(3)
Actual return on plan assets: Relating to assets still held at the reporting date	5	(12)	6
Purchases, sales and settlements, net	(9)	(38)	(46)
Net transfers in and/or (out) of Level 3	0	0	0
Fair value of plan assets, end of year	100	104	154
Private equity funds \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				261	237
Private equity funds \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Private equity funds \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Private equity funds \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				261	237
Total reported plan assets	237	218	211	261	237
Pension plan assets
Fair value of plan assets, beginning of year	237	218	211
Actual return on plan assets: Relating to assets sold during the period	0	0	(4)
Actual return on plan assets: Relating to assets still held at the reporting date	24	(8)	4
Purchases, sales and settlements, net	0	27	7
Net transfers in and/or (out) of Level 3	0	0	0
Fair value of plan assets, end of year	261	237	218
Hedge funds \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				2	33
Hedge funds \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Hedge funds \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Hedge funds \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				2	33
Total reported plan assets	33	32	9	2	33
Pension plan assets
Fair value of plan assets, beginning of year	33	32	9
Actual return on plan assets: Relating to assets sold during the period	0	0	0
Actual return on plan assets: Relating to assets still held at the reporting date	(2)	1	0
Purchases, sales and settlements, net	(29)	0	23
Net transfers in and/or (out) of Level 3	0	0	0
Fair value of plan assets, end of year	$ 2	$ 33	$ 32
Cash and cash equivalents \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				32	22
Cash and cash equivalents \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				32	22
Cash and cash equivalents \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	0
Cash and cash equivalents \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0	$ 0
Free Standing Derivative Assets \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				0
Free Standing Derivative Assets \| Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				(1)
Free Standing Derivative Assets \| Pension benefits \| Significant other observable inputs (Level 2)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				1
Free Standing Derivative Assets \| Pension benefits \| Significant unobservable inputs (Level 3)
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Total plan assets at fair value				$ 0
Equity securities \| Fixed income securities \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets				3.00%	3.00%
Equity securities \| Derivatives \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets				1.00%
Equity securities \| Private equity funds \| Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets				1.00%	2.00%

Benefit Plans (Details 3) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Principal balance of note from ESOP	$ 5
Interest rate on note from ESOP (as a percent)	7.90%
Company's contribution to the Allstate Plan	$ 80	$ 79	$ 75
ESOP benefit computed
Interest expense recognized by ESOP	1	1	1
Less: dividends accrued on ESOP shares	(3)	(3)	(4)
Cost of shares allocated	7	10	8
Compensation expense	5	8	5
Reduction of defined contribution due to ESOP	60	73	71
ESOP benefit	(55)	(65)	(66)
Contributions to ESOP	$ 2	2	3
ESOP shares committed to be released (in shares)	1
Allocated ESOP shares (in shares)	37
Unallocated ESOP shares (in shares)	1
Defined contribution plan expense for eligible employees of Canadian insurance subsidiaries and Sterling	$ 10	$ 10	$ 11

Equity Incentive Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Equity Incentive Plans
Compensation expense	$ 80,000	$ 81,000	$ 88,000
Share-based compensation arrangement by share-based payment award, recognized tax benefits	28,000	28,000	30,000
Cash received from the exercise of options	187,000	187,000	314,000
Tax benefit realized on options exercised and stock unrestricted	61,000	82,000	73,000
Equity Incentive Plans
Unrecognized compensation cost related to nonvested awards	$ 62,000
Common stock authorized for stock-based awards (in shares)	97,600
Common stock reserved for further issuance (in shares)	21,700
Weighted average grant date fair value
Tax (expense) benefit realized related to all stock-based compensation included in shareholder's equity	$ 30,000	$ 46,000	$ 32,000
Stock options
Equity Incentive Plans
Vesting period of options granted prior to 2010	3 years
Portion of awards vesting and unrestricting on second anniversary of grant date (as a percent)	50.00%
Portion of awards vesting and unrestricting on third and fourth anniversaries of grant date (as a percent)	25.00%
Expiration term for options	10 years
Assumptions used to determine fair value of options granted
Weighted average expected term	5 years	6 years 6 months	6 years 6 months
Expected volatility, low end of the range (as a percent)	16.00%	16.00%	16.80%
Expected volatility, high end of the range (as a percent)	34.30%	37.80%	42.20%
Weighted average volatility (as a percent)	24.30%	24.70%	28.30%
Expected dividends, minimum range (as a percent)	1.90%	1.60%	1.70%
Expected dividends, maximum range (as a percent)	2.10%	2.10%	2.20%
Weighted average expected dividends (as a percent)	2.10%	1.70%	2.10%
Risk-free rate, low end of the range (as a percent)	0.20%	0.00%	0.00%
Risk-free rate, high end of the range (as a percent)	2.40%	2.40%	3.00%
Stock option activity
Outstanding at the beginning of the period (in shares)	15,716
Granted (in shares)	3,013
Exercised (in shares)	(4,755)
Forfeited (in shares)	(378)
Expired (in shares)	(36)
Outstanding at the end of the period (in shares)	13,560	15,716
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at the beginning of the period (in dollars per share)	$ 45.81
Granted (in dollars per share)	62.84
Exercised (in dollars per share)	43.20
Forfeited (in dollars per share)	61.64
Expired (in dollars per share)	64.83
Outstanding at the end of the period (in dollars per share)	$ 50.01	$ 45.81
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Aggregate intrinsic value, Outstanding	$ 326,911
Aggregate intrinsic value, net of expected forfeitures, outstanding	325,668
Aggregate intrinsic value, exercisable ("vested"), outstanding	$ 258,367
Weighted average remaining contractual term, Outstanding	6 years
Weighted average remaining contractual term, net of expected forfeitures, outstanding	5 years 10 months 24 days
Weighted average remaining contractual term, exercisable ("vested"), outstanding	4 years 6 months
Outstanding, net of expected forfeitures (in shares)	13,434
Outstanding, exercisable ("vested") (in shares)	8,104
Outstanding, net of expected forfeitures (in dollars per share)	$ 49.88
Outstanding, exercisable ("vested") (in dollars per share)	42.24
Weighted average grant date fair value of options granted (in dollars per share)	$ 12.25	$ 15.45	$ 12.50
Intrinsic value of options exercised	$ 119,000	$ 117,000	$ 151,000
Weighted average grant date fair value
Tax (expense) benefit realized related to all stock-based compensation included in shareholder's equity	23,000	$ 23,000	$ 23,000
Nonqualified stock options
Equity Incentive Plans
Unrecognized compensation cost related to nonvested awards	$ 25,000
Expected period of recognition of unrecognized compensation cost	1 year 8 months 19 days
Restricted stock units
Equity Incentive Plans
Unrecognized compensation cost related to nonvested awards	$ 25,000
Expected period of recognition of unrecognized compensation cost	1 year 9 months 15 days
Portion of awards vesting and unrestricting on second anniversary of grant date (as a percent)	50.00%
Portion of awards vesting and unrestricting on third and fourth anniversaries of grant date (as a percent)	25.00%
Stock units activity
Outstanding at the beginning of the period (in shares)	1,839
Granted (in shares)	360
Vested (in shares)	(449)
Forfeited (in shares)	(71)
Outstanding at the end of the period (in shares)	1,679	1,839
Weighted average grant date fair value
Weighted average grant date fair value, nonvested at the beginning of the period (in dollars per share)	$ 52.86
Weighted average grant date fair value, granted (in dollars per share)	63.51	$ 69.25	$ 52.70
Weighted average grant date fair value, vested (in dollars per share)	39.30
Weighted average grant date fair value, forfeited (in dollars per share)	59.51
Weighted average grant date fair value, nonvested at the end of the period (in dollars per share)	$ 58.49	$ 52.86
Total fair value of restricted stock and restricted stock units vested	$ 29,000	$ 63,000	$ 60,000
Performance stock awards
Equity Incentive Plans
Unrecognized compensation cost related to nonvested awards	$ 12,000
Expected period of recognition of unrecognized compensation cost	1 year 8 months 5 days
Stock units activity
Outstanding at the beginning of the period (in shares)	930
Granted (in shares)	520
Vested (in shares)	(442)
Adjustment for performance achievement (in shares)	(15)
Forfeited (in shares)	(74)
Outstanding at the end of the period (in shares)	919	930
Weighted average grant date fair value
Weighted average grant date fair value, nonvested at the beginning of the period (in dollars per share)	$ 53.27
Weighted average grant date fair value, granted (in dollars per share)	62.32	$ 70.37	$ 52.18
Weighted average grant date fair value, adjustment for performance achievement (in dollars per share)	45.61
Weighted average grant date fair value, vested (in dollars per share)	45.61
Weighted average grant date fair value, forfeited (in dollars per share)	61.87
Weighted average grant date fair value, nonvested at the end of the period (in dollars per share)	$ 61.50	$ 53.27
Total fair value of restricted stock and restricted stock units vested	$ 28,000	$ 56,000

Reporting Segments (Details)	12 Months Ended
Reporting Segments (Details)	Dec. 31, 2016 USD ($) segment	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Segment Reporting Information
Number of reportable segments \| segment	4
Period within which an unusual or infrequent item is unlikely to recur	2 years
Prior period with no similar unusual or infrequent item	2 years
Non-US
Segment Reporting Information
Revenues from external customers generated outside the United States	$ 1,000,000	$ 0	$ 0
Allstate Protection
Segment Reporting Information
Revenues from external customers generated outside the United States	$ 1,060,000,000	$ 1,030,000,000	$ 1,080,000,000

Reporting Segments (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Reporting Segments (Details 2) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information
Property-liability insurance premiums									$ 31,307	$ 30,309	$ 28,929
Life and annuity premiums and contract charges									2,275	2,158	2,157
Net investment income									3,042	3,156	3,459
Realized capital gains and losses									(90)	30	694
Revenues	$ 9,278	$ 9,221	$ 9,164	$ 8,871	$ 8,691	$ 9,028	$ 8,982	$ 8,952	36,534	35,653	35,239
Property-Liability
Segment Reporting Information
Net investment income									1,266	1,237	1,301
Realized capital gains and losses									(6)	(237)	549
Revenues									32,567	31,309	30,779
Property-Liability \| Auto
Segment Reporting Information
Property-liability insurance premiums									21,264	20,410	19,344
Property-Liability \| Homeowners
Segment Reporting Information
Property-liability insurance premiums									7,257	7,136	6,904
Property-Liability \| Other personal lines
Segment Reporting Information
Property-liability insurance premiums									1,700	1,692	1,662
Property-Liability \| Commercial lines
Segment Reporting Information
Property-liability insurance premiums									506	510	476
Property-Liability \| Other business lines
Segment Reporting Information
Property-liability insurance premiums									580	561	542
Allstate Protection
Segment Reporting Information
Property-liability insurance premiums									31,307	30,309	28,928
Discontinued Lines and Coverages
Segment Reporting Information
Property-liability insurance premiums									0	0	1
Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges									2,275	2,158	2,157
Net investment income									1,734	1,884	2,131
Realized capital gains and losses									(81)	267	144
Revenues									3,928	4,309	4,432
Allstate Financial \| Traditional life insurance
Segment Reporting Information
Life and annuity premiums and contract charges									573	542	511
Allstate Financial \| Immediate annuities with life contingencies
Segment Reporting Information
Life and annuity premiums and contract charges									0	0	4
Allstate Financial \| Accident and health insurance
Segment Reporting Information
Life and annuity premiums and contract charges									859	780	744
Allstate Financial \| Total life and annuity premiums
Segment Reporting Information
Life and annuity premiums and contract charges									1,432	1,322	1,259
Allstate Financial \| Interest-sensitive life insurance
Segment Reporting Information
Life and annuity premiums and contract charges									829	822	879
Allstate Financial \| Fixed annuities
Segment Reporting Information
Life and annuity premiums and contract charges									14	14	19
Allstate Financial \| Total contract charges
Segment Reporting Information
Life and annuity premiums and contract charges									843	836	898
Corporate and Other
Segment Reporting Information
Net investment income									42	35	27
Realized capital gains and losses									(3)	0	1
Service fees									4	3	5
Total Corporate and Other before reclassification of service fees									43	38	33
Reclassification of service fees									(4)	(3)	(5)
Revenues									$ 39	$ 35	$ 28

Reporting Segments (Details 3) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Reporting Segments (Details 3) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information
Net investment income									$ 3,042	$ 3,156	$ 3,459
Net income applicable to common shareholders	$ 811	$ 491	$ 242	$ 217	$ 460	$ 621	$ 326	$ 648	1,761	2,055	2,746
Life and annuity premiums and contract charges									2,275	2,158	2,157
Restructuring and related charges									(30)	(39)	(18)
Total income tax expense									877	1,111	1,386
Accounting Standards Update 2014-01
Segment Reporting Information
Total income tax expense										45
Allstate Protection
Segment Reporting Information
Underwriting income									1,317	1,614	1,887
Discontinued Lines and Coverages
Segment Reporting Information
Underwriting income									(107)	(55)	(115)
Property-Liability
Segment Reporting Information
Underwriting income									1,210	1,559	1,772
Net investment income									1,266	1,237	1,301
Income tax benefit (expense) on operations									(812)	(952)	(1,040)
Realized capital gains and losses, after-tax									0	(154)	357
Gain (loss) on disposition of operations, after-tax									0	0	37
Net income applicable to common shareholders									1,664	1,690	2,427
Total income tax expense									806	869	1,211
Property-Liability \| Accounting Standards Update 2014-01
Segment Reporting Information
Total income tax expense									28
Allstate Financial
Segment Reporting Information
Net investment income									1,734	1,884	2,131
Income tax benefit (expense) on operations									(206)	(241)	(294)
Realized capital gains and losses, after-tax									(54)	173	94
Gain (loss) on disposition of operations, after-tax									3	2	(53)
Net income applicable to common shareholders									391	663	631
Life and annuity premiums and contract charges									2,275	2,158	2,157
Periodic settlements and accruals on non-hedge derivative instruments									0	0	(1)
Contract benefits and interest credited to contractholder funds									(2,580)	(2,563)	(2,663)
Operating costs and expenses and amortization of deferred policy acquisition costs									(774)	(729)	(721)
Restructuring and related charges									(1)	0	(2)
Operating Income (loss)									448	509	607
Valuation changes on embedded derivatives that are not hedged, after-tax									(2)	(1)	(15)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax									(4)	(3)	(3)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax									0	0	1
Change in accounting for investments in qualified affordable housing projects, after-tax									0	(17)	0
Total income tax expense									178	351	299
Corporate and Other
Segment Reporting Information
Net investment income									42	35	27
Income tax benefit (expense) on operations									106	109	124
Realized capital gains and losses, after-tax									(2)	0	0
Net income applicable to common shareholders									(294)	(298)	(312)
Operating Income (loss)									(292)	(298)	(312)
Service fees									4	3	5
Operating costs and expenses									(328)	(329)	(364)
Preferred stock dividends									(116)	(116)	(104)
Total income tax expense									$ 107	$ 109	$ 124

Reporting Segments (Details 4) - USD ($) $ in Millions	12 Months Ended
Reporting Segments (Details 4) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information
Amortization of DAC	$ 4,550	$ 4,364	$ 4,135
Income tax expense	(877)	(1,111)	(1,386)
Property-Liability
Segment Reporting Information
Amortization of DAC	4,267	4,102	3,875
Income tax expense	(806)	(869)	(1,211)
Allstate Financial
Segment Reporting Information
Amortization of DAC	283	262	260
Income tax expense	(178)	(351)	(299)
Corporate and Other
Segment Reporting Information
Income tax expense	$ (107)	$ (109)	$ (124)

Reporting Segments (Details 5) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information
Assets	$ 108,610	$ 104,656	$ 108,479
Investments	81,799	77,758	81,113
Property-Liability
Segment Reporting Information
Assets	60,394	55,671	55,767
Investments	42,722	38,479	39,083
Allstate Financial
Segment Reporting Information
Assets	45,945	46,342	49,248
Investments	36,840	36,792	38,809
Corporate and Other
Segment Reporting Information
Assets	2,271	2,643	3,464
Investments	$ 2,237	$ 2,487	$ 3,221

Other Comprehensive Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pre-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$ 486	$ (1,896)	$ 1,026
Less: reclassification adjustment of realized capital gains and losses	(180)	112	597
Unrealized net capital gains and losses	666	(2,008)	429
Unrealized foreign currency translation adjustments	15	(89)	(62)
Unrecognized pension and other postretirement benefit cost arising during the period	(263)	(64)	(1,197)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(100)	(134)	(78)
Unrecognized pension and other postretirement benefit cost	(163)	70	(1,119)
Other comprehensive income (loss)	518	(2,027)	(752)
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(170)	663	(358)
Less: reclassification adjustment of realized capital gains and losses	63	(39)	(209)
Unrealized net capital gains and losses	(233)	702	(149)
Unrealized foreign currency translation adjustments	(5)	31	22
Unrecognized pension and other postretirement benefit cost arising during the period	94	25	421
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	35	47	27
Unrecognized pension and other postretirement benefit cost	59	(22)	394
Other comprehensive income (loss)	(179)	711	267
After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	316	(1,233)	668
Less: reclassification adjustment of realized capital gains and losses	(117)	73	388
Unrealized net capital gains and losses	433	(1,306)	280
Unrealized foreign currency translation adjustments	10	(58)	(40)
Unrecognized pension and other postretirement benefit cost arising during the period	(169)	(39)	(776)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(65)	(87)	(51)
Unrecognized pension and other postretirement benefit cost	(104)	48	(725)
Other comprehensive income (loss), after-tax	$ 339	$ (1,316)	$ (485)

Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 9,278	$ 9,221	$ 9,164	$ 8,871	$ 8,691	$ 9,028	$ 8,982	$ 8,952	$ 36,534	$ 35,653	$ 35,239
Net income applicable to common shareholders	$ 811	$ 491	$ 242	$ 217	$ 460	$ 621	$ 326	$ 648	$ 1,761	$ 2,055	$ 2,746
Net income applicable to common shareholders earnings per common share - Basic (in dollars per share)	$ 2.20	$ 1.32	$ 0.65	$ 0.57	$ 1.19	$ 1.56	$ 0.80	$ 1.56	$ 4.72	$ 5.12	$ 6.37
Net income applicable to common shareholders earnings per common share - Diluted (in dollars per share)	$ 2.18	$ 1.31	$ 0.64	$ 0.57	$ 1.18	$ 1.54	$ 0.79	$ 1.53	$ 4.67	$ 5.05	$ 6.27

SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions	Dec. 31, 2016 USD ($)
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	$ 80,022
Amount at which shown in the Balance Sheet	81,799
United States government, government agencies and authorities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	3,572
Fair value	3,637
Amount at which shown in the Balance Sheet	3,637
States, municipalities and political subdivisions
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	7,116
Fair value	7,333
Amount at which shown in the Balance Sheet	7,333
Foreign governments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	1,043
Fair value	1,075
Amount at which shown in the Balance Sheet	1,075
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	5,048
Fair value	5,322
Amount at which shown in the Balance Sheet	5,322
All other corporate bonds
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	37,694
Fair value	38,279
Amount at which shown in the Balance Sheet	38,279
Asset-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	1,169
Fair value	1,171
Amount at which shown in the Balance Sheet	1,171
Residential mortgage-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	651
Fair value	728
Amount at which shown in the Balance Sheet	728
Commercial mortgage-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	262
Fair value	270
Amount at which shown in the Balance Sheet	270
Redeemable preferred stock
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	21
Fair value	24
Amount at which shown in the Balance Sheet	24
Fixed income securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	56,576
Fair value	57,839
Amount at which shown in the Balance Sheet	57,839
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	108
Fair value	114
Amount at which shown in the Balance Sheet	114
Banks, trusts and insurance companies
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	804
Fair value	895
Amount at which shown in the Balance Sheet	895
Industrial, miscellaneous and all other
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	4,100
Fair value	4,477
Amount at which shown in the Balance Sheet	4,477
Nonredeemable preferred stocks
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	145
Fair value	180
Amount at which shown in the Balance Sheet	180
Equity securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	5,157
Fair value	5,666
Amount at which shown in the Balance Sheet	5,666
Mortgage loans on real estate
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	4,486
Fair value	4,514
Amount at which shown in the Balance Sheet	4,486
Real estate
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	318
Amount at which shown in the Balance Sheet	318
Real estate acquired in satisfaction of debt
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	0
Amount at which shown in the Balance Sheet	0
Policy loans
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	904
Amount at which shown in the Balance Sheet	904
Derivative instruments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	106
Fair value	111
Amount at which shown in the Balance Sheet	111
Limited partnership interests
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	5,814
Amount at which shown in the Balance Sheet	5,814
Other long-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	2,373
Amount at which shown in the Balance Sheet	2,373
Short-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	4,288
Fair value	4,288
Amount at which shown in the Balance Sheet	$ 4,288

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues
Net investment income									$ 3,042	$ 3,156	$ 3,459
Realized capital gains and losses									(90)	30	694
Revenues	$ 9,278	$ 9,221	$ 9,164	$ 8,871	$ 8,691	$ 9,028	$ 8,982	$ 8,952	36,534	35,653	35,239
Expenses
Interest expense									295	292	322
Loss on extinguishment of debt									0	0	1
Other operating expenses									4,106	4,081	4,341
Total costs and expenses									33,785	32,374	30,929
Income tax benefit									877	1,111	1,386
Net income									1,877	2,171	2,850
Preferred stock dividends									116	116	104
Net income applicable to common shareholders	$ 811	$ 491	$ 242	$ 217	$ 460	$ 621	$ 326	$ 648	1,761	2,055	2,746
Other comprehensive income (loss), after-tax
Unrealized net capital gains and losses									433	(1,306)	280
Unrealized foreign currency translation adjustments									10	(58)	(40)
Unrecognized pension and other postretirement benefit cost									(104)	48	(725)
Other comprehensive income (loss), after-tax									339	(1,316)	(485)
Comprehensive income									2,216	855	2,365
Allstate Corporation
Revenues
Net investment income									11	8	3
Realized capital gains and losses									2	0	0
Other income									55	66	67
Revenues									68	74	70
Expenses
Interest expense									295	292	321
Loss on extinguishment of debt									0	0	1
Pension and other postretirement benefit expense									10	(15)	41
Other operating expenses									28	34	38
Total costs and expenses									333	311	401
Loss from operations before income tax benefit and equity in net income of subsidiaries									(265)	(237)	(331)
Income tax benefit									(115)	(108)	(142)
Loss before equity in net income of subsidiaries									(150)	(129)	(189)
Equity in net income of subsidiaries									2,027	2,300	3,039
Net income									1,877	2,171	2,850
Preferred stock dividends									116	116	104
Net income applicable to common shareholders									1,761	2,055	2,746
Other comprehensive income (loss), after-tax
Unrealized net capital gains and losses									433	(1,306)	280
Unrealized foreign currency translation adjustments									10	(58)	(40)
Unrecognized pension and other postretirement benefit cost									(104)	48	(725)
Other comprehensive income (loss), after-tax									339	(1,316)	(485)
Comprehensive income									$ 2,216	$ 855	$ 2,365

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets
Fixed income securities, at fair value (amortized cost $510 and $485)	$ 57,839	$ 57,948
Short-term investments, at fair value (amortized cost $219 and $277)	4,288	2,122
Cash	436	495	$ 657	$ 675
Total assets	108,610	104,656	108,479
Liabilities
Long-term debt	6,347	5,124
Total liabilities	88,037	84,631
Shareholders’ equity
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 366 million and 381 million shares outstanding	9	9
Additional capital paid-in	3,303	3,245
Retained income	40,678	39,413
Deferred ESOP expense	(6)	(13)
Treasury stock, at cost (534 million and 519 million shares)	(24,741)	(23,620)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	1,053	620
Unrealized foreign currency translation adjustments	(50)	(60)
Unrecognized pension and other postretirement benefit cost	(1,419)	(1,315)
Total accumulated other comprehensive loss	(416)	(755)
Total shareholders’ equity	20,573	20,025
Total liabilities and shareholders’ equity	108,610	104,656
Additional balance sheet disclosures:
Short-term, at fair value, amortized cost (in dollars)	$ 4,288	$ 2,122
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	72,200	72,200
Preferred stock, shares outstanding (in shares)	72,200	72,200
Preferred stock, shares aggregate liquidation preference (in dollars)	$ 1,805	$ 1,805
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	900,000,000	900,000,000
Common stock, shares outstanding (in shares)	366,000,000	381,000,000
Treasury stock, shares (in shares)	534,000,000	519,000,000
Allstate Corporation
Assets
Investments in subsidiaries	$ 26,929	$ 25,047
Fixed income securities, at fair value (amortized cost $510 and $485)	513	485
Short-term investments, at fair value (amortized cost $219 and $277)	219	277
Cash	2	4	$ 155	$ 105
Receivable from subsidiaries	385	339
Deferred income taxes	348	302
Other assets	138	133
Total assets	28,534	26,587
Liabilities
Long-term debt	6,347	5,124
Pension and other postretirement benefit obligations	1,079	948
Deferred compensation	274	259
Dividends payable to shareholders	157	150
Other liabilities	104	81
Total liabilities	7,961	6,562
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 72.2 thousand issued and outstanding, and $1,805 aggregate liquidation preference	1,746	1,746
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 366 million and 381 million shares outstanding	9	9
Additional capital paid-in	3,303	3,245
Retained income	40,678	39,413
Deferred ESOP expense	(6)	(13)
Treasury stock, at cost (534 million and 519 million shares)	(24,741)	(23,620)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	1,053	620
Unrealized foreign currency translation adjustments	(50)	(60)
Unrecognized pension and other postretirement benefit cost	(1,419)	(1,315)
Total accumulated other comprehensive loss	(416)	(755)
Total shareholders’ equity	20,573	20,025
Total liabilities and shareholders’ equity	28,534	26,587
Additional balance sheet disclosures:
Fixed income securities, at fair value, amortized cost (in dollars)	510	485
Short-term, at fair value, amortized cost (in dollars)	$ 219	$ 277
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	72,200	72,200
Preferred stock, shares outstanding (in shares)	72,200	72,200
Preferred stock, shares aggregate liquidation preference (in dollars)	$ 1,805	$ 1,805
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	900,000,000	900,000,000
Common stock, shares outstanding (in shares)	366,000,000	381,000,000
Treasury stock, shares (in shares)	534,000,000	519,000,000

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income	$ 1,877	$ 2,171	$ 2,850
Adjustments to reconcile net income to net cash provided by operating activities:
Realized capital gains and losses	90	(30)	(694)
Loss on extinguishment of debt	0	0	1
Changes in:
Net cash provided by operating activities	3,993	3,616	3,236
Cash flows from investing activities
Change in short-term investments, net	(2,446)	385	272
Net cash (used in) provided by investing activities	(2,526)	742	1,621
Cash flows from financing activities
Proceeds from issuance of long-term debt	1,236	0	0
Repayments of long-term debt	(17)	(20)	(1,006)
Proceeds from issuance of preferred stock	0	0	965
Dividends paid on common stock	(486)	(483)	(477)
Dividends paid on preferred stock	(116)	(116)	(87)
Treasury stock purchases	(1,337)	(2,808)	(2,301)
Shares reissued under equity incentive plans, net	164	130	266
Excess tax benefits on share-based payment arrangements	32	45	41
Other	36	7	(14)
Net cash used in financing activities	(1,526)	(4,520)	(4,875)
Net decrease in cash	(59)	(162)	(18)
Cash at beginning of year	495	657	675
Cash at end of year	436	495	657
Supplemental disclosures of non-cash investing activity and cash flow information
Interest paid on debt	287	289	332
Allstate Corporation
Cash flows from operating activities
Net income	1,877	2,171	2,850
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(2,027)	(2,300)	(3,039)
Dividends received from subsidiaries	1,874	2,300	2,497
Realized capital gains and losses	(2)	0	0
Loss on extinguishment of debt	0	0	1
Changes in:
Pension and other postretirement benefits	10	(15)	41
Income taxes	13	77	(158)
Operating assets and liabilities	43	26	(29)
Net cash provided by operating activities	1,788	2,259	2,163
Cash flows from investing activities
Proceeds from sales of investments	389	399	351
Investment purchases	(243)	(4)	(1,174)
Investment collections	60	0	155
Return of capital from subsidiaries	(1,500)	50	1,200
Transfers to subsidiaries through intercompany loan agreement	(30)	0	0
Change in short-term investments, net	58	397	(88)
Net cash (used in) provided by investing activities	(1,266)	842	444
Cash flows from financing activities
Proceeds from issuance of long-term debt	1,236	0	0
Repayments of long-term debt	(17)	(20)	(962)
Proceeds from issuance of preferred stock	0	0	965
Dividends paid on common stock	(486)	(483)	(477)
Dividends paid on preferred stock	(116)	(116)	(87)
Treasury stock purchases	(1,337)	(2,808)	(2,301)
Shares reissued under equity incentive plans, net	164	130	266
Excess tax benefits on share-based payment arrangements	32	45	41
Other	0	0	(2)
Net cash used in financing activities	(524)	(3,252)	(2,557)
Net decrease in cash	(2)	(151)	50
Cash at beginning of year	4	155	105
Cash at end of year	2	4	155
Supplemental disclosures of non-cash investing activity and cash flow information
Interest paid on debt	$ 287	$ 289	$ 332

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplementary Insurance Information
Deferred policy acquisition costs	$ 3,954	$ 3,861	$ 3,525
Reserves for claims and claims expense, contract benefits and contractholder funds	57,749	57,411	57,832
Unearned premiums	12,583	12,202	11,655
Premium revenue and contract charges	33,582	32,467	31,086
Net investment income	3,042	3,156	3,459
Claims and claims expense, contract benefits and interest credited to contractholders	24,804	23,598	22,112
Amortization of deferred policy acquisition costs	4,550	4,364	4,135
Other operating costs and expenses	4,431	4,412	4,682
Premiums written (excluding life)	32,455	31,648	30,360
Allstate Protection
Supplementary Insurance Information
Deferred policy acquisition costs	2,188	2,029	1,820
Reserves for claims and claims expense, contract benefits and contractholder funds	23,297	21,807	20,709
Unearned premiums	12,571	12,189	11,640
Premium revenue and contract charges	31,307	30,309	28,928
Claims and claims expense, contract benefits and interest credited to contractholders	22,116	20,981	19,315
Amortization of deferred policy acquisition costs	4,267	4,102	3,875
Other operating costs and expenses	3,607	3,612	3,851
Premiums written (excluding life)	31,597	30,871	29,613
Discontinued Lines and Coverages
Supplementary Insurance Information
Deferred policy acquisition costs	0	0	0
Reserves for claims and claims expense, contract benefits and contractholder funds	1,953	2,062	2,214
Unearned premiums	0	0	0
Premium revenue and contract charges	0	0	1
Claims and claims expense, contract benefits and interest credited to contractholders	105	53	113
Amortization of deferred policy acquisition costs	0	0	0
Other operating costs and expenses	2	2	3
Premiums written (excluding life)	3	0	1
Property-Liability
Supplementary Insurance Information
Deferred policy acquisition costs	2,188	2,029	1,820
Reserves for claims and claims expense, contract benefits and contractholder funds	25,250	23,869	22,923
Unearned premiums	12,571	12,189	11,640
Premium revenue and contract charges	31,307	30,309	28,929
Net investment income	1,266	1,237	1,301
Claims and claims expense, contract benefits and interest credited to contractholders	22,221	21,034	19,428
Amortization of deferred policy acquisition costs	4,267	4,102	3,875
Other operating costs and expenses	3,609	3,614	3,854
Premiums written (excluding life)	31,600	30,871	29,614
Allstate Financial operations
Supplementary Insurance Information
Deferred policy acquisition costs	1,766	1,832	1,705
Reserves for claims and claims expense, contract benefits and contractholder funds	32,499	33,542	34,909
Unearned premiums	12	13	15
Premium revenue and contract charges	2,275	2,158	2,157
Net investment income	1,734	1,884	2,131
Claims and claims expense, contract benefits and interest credited to contractholders	2,583	2,564	2,684
Amortization of deferred policy acquisition costs	283	262	260
Other operating costs and expenses	498	472	468
Premiums written (excluding life)	855	777	746
Corporate and Other
Supplementary Insurance Information
Deferred policy acquisition costs	0	0	0
Reserves for claims and claims expense, contract benefits and contractholder funds	0	0	0
Unearned premiums	0	0	0
Premium revenue and contract charges	0	0	0
Net investment income	42	35	27
Claims and claims expense, contract benefits and interest credited to contractholders	0	0	0
Amortization of deferred policy acquisition costs	0	0	0
Other operating costs and expenses	324	326	360
Premiums written (excluding life)	$ 0	$ 0	$ 0

SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions	12 Months Ended
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Life insurance in force
Gross amount	$ 167,355	$ 156,486	$ 135,627
Ceded to other companies	90,011	93,326	98,165
Assumed from other companies	275,008	280,644	290,565
Net amount	$ 352,352	$ 343,804	$ 328,027
Percentage of amount assumed to net	78.00%	81.60%	88.60%
Premiums and contract charges:
Gross amount	$ 34,015	$ 32,915	$ 31,858
Ceded premium earned	1,296	1,338	1,446
Assumed from other companies	863	890	674
Net amount	$ 33,582	$ 32,467	$ 31,086
Percentage of amount assumed to net	2.60%	2.70%	2.20%
Reinsurance or coinsurance income net of premium ceded	$ 0	$ 0	$ 0
Life insurance
Premiums and contract charges:
Gross amount	877	828	1,144
Ceded premium earned	279	299	360
Assumed from other companies	818	849	629
Net amount	$ 1,416	$ 1,378	$ 1,413
Percentage of amount assumed to net	57.80%	61.60%	44.50%
Accident and health insurance
Premiums and contract charges:
Gross amount	$ 889	$ 813	$ 800
Ceded premium earned	30	33	56
Assumed from other companies	0	0	0
Net amount	$ 859	$ 780	$ 744
Percentage of amount assumed to net	0.00%	0.00%	0.00%
Property-liability insurance
Premiums and contract charges:
Gross amount	$ 32,249	$ 31,274	$ 29,914
Ceded premium earned	987	1,006	1,030
Assumed from other companies	45	41	45
Net amount	$ 31,307	$ 30,309	$ 28,929
Percentage of amount assumed to net	0.10%	0.10%	0.20%

SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for reinsurance recoverables
Valuation allowances and qualifying accounts
Balance as of beginning of period	$ 80	$ 95	$ 92
Additions charged to costs and expenses	5	(15)	3
Deductions	1	0	0
Balance as of end of period	84	80	95
Allowance for premium installment receivable
Valuation allowances and qualifying accounts
Balance as of beginning of period	90	83	77
Additions charged to costs and expenses	107	107	99
Deductions	113	100	93
Balance as of end of period	84	90	83
Allowance for deferred tax assets
Valuation allowances and qualifying accounts
Balance as of beginning of period	0	0	0
Additions charged to costs and expenses	0	0	0
Deductions	0	0	0
Balance as of end of period	0	0	0
Allowance for estimated losses on mortgage loans
Valuation allowances and qualifying accounts
Balance as of beginning of period	3	8	21
Additions charged to costs and expenses	0	(4)	(5)
Deductions	0	1	8
Balance as of end of period	$ 3	$ 3	$ 8

SCHEDULE VI - SUPPLEMENTARY INFORMATION CONCERNING CONSOLIDATED PROPERTY-CASUALTY INSURANCE OPERATIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract]
Deferred policy acquisition costs	$ 2,188	$ 2,029	$ 1,820
Reserves for insurance claims and claims expense	25,250	23,869	22,923
Unearned premiums	12,571	12,189	11,640
Earned premiums	31,307	30,309	28,929
Net investment income	1,266	1,237	1,301
Claims and claims adjustment expense incurred
Current year	22,238	20,953	19,512
Prior years	(17)	(81)	(84)
Amortization of deferred policy acquisition costs	4,267	4,102	3,875
Paid claims and claims adjustment expense	21,132	20,286	19,392
Premiums written	$ 31,600	$ 30,871	$ 29,614

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 11	$ (18)	$ (2)
Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	(24)	(36)
Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	9	(7)	15
Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	18	22	22
Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(16)	(9)	1
Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	(4)
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1	(14)
Interest rate contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1	(10)
Interest rate contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0	0
Interest rate contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0	0
Interest rate contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0	0
Interest rate contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0	(4)
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	25	(9)	29
Equity and index contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(12)	1	(18)
Equity and index contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Equity and index contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	18	(9)	38
Equity and index contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	19	(1)	9
Equity and index contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	9	24	1
Embedded derivative financial instruments \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Embedded derivative financial instruments \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	9	(7)	15
Embedded derivative financial instruments \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	31	(14)
Embedded derivative financial instruments \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Embedded derivative financial instruments \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(18)	(32)	(17)
Foreign currency contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	17	(24)	(9)
Foreign currency contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Foreign currency contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Foreign currency contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(35)	(8)	(8)
Foreign currency contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Credit default swaps
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(5)	(2)	1
Credit default swaps \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(5)	(2)	1
Credit default swaps \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Credit default swaps \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Credit default swaps \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Credit default swaps \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 0	$ 0	0
Other contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives			(2)
Other contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives			0
Other contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives			0
Other contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives			(2)
Other contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives			0
Other contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives			$ 0