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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 17, 2017
Document and Entity Information
Entity Registrant Name	ALLSTATE CORP
Entity Central Index Key	0000899051
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		358,825,941

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Property-liability insurance premiums	$ 8,121	$ 7,869	$ 24,098	$ 23,406
Life and annuity premiums and contract charges	593	571	1,777	1,701
Net investment income	843	748	2,488	2,241
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(26)	(73)	(135)	(241)
OTTI losses reclassified to (from) other comprehensive income	(2)	0	(2)	8
Net OTTI losses recognized in earnings	(28)	(73)	(137)	(233)
Sales and other realized capital gains and losses	131	106	455	141
Total realized capital gains and losses	103	33	318	(92)
Total revenues	9,660	9,221	28,681	27,256
Costs and expenses
Property-liability insurance claims and claims expense	5,545	5,553	16,650	17,138
Life and annuity contract benefits	456	484	1,416	1,393
Interest credited to contractholder funds	174	183	522	558
Amortization of deferred policy acquisition costs	1,200	1,138	3,545	3,393
Operating costs and expenses	1,218	1,021	3,401	3,043
Restructuring and related charges	14	5	77	21
Interest expense	83	73	251	218
Costs and expenses	8,690	8,457	25,862	25,764
Gain on disposition of operations	1	1	15	4
Income from operations before income tax expense	971	765	2,834	1,496
Income tax expense	305	245	894	459
Net income	666	520	1,940	1,037
Preferred stock dividends	29	29	87	87
Net income applicable to common shareholders	$ 637	$ 491	$ 1,853	$ 950
Earnings per common share:
Net income available to common shareholders per common share - Basic (in dollars per share)	$ 1.76	$ 1.32	$ 5.10	$ 2.54
Weighted average common shares - Basic (in shares)	361.3	371.5	363.5	374.4
Net income available to common shareholders per common share - Diluted (in dollars per share)	$ 1.74	$ 1.31	$ 5.02	$ 2.51
Weighted average common shares - Diluted (in shares)	367.1	375.9	369.1	378.9
Cash dividends declared per common share (in dollars per share)	$ 0.37	$ 0.33	$ 1.11	$ 0.99

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 666	$ 520	$ 1,940	$ 1,037
Changes in:
Unrealized net capital gains and losses	125	193	598	1,197
Unrealized foreign currency translation adjustments	28	(7)	36	12
Unrecognized pension and other postretirement benefit cost	73	21	110	48
Other comprehensive income, after-tax	226	207	744	1,257
Comprehensive income	$ 892	$ 727	$ 2,684	$ 2,294

Condensed Consolidated Statements of Financial Position - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Investments
Fixed income securities, at fair value (amortized cost $57,608 and $56,576)	$ 59,391	$ 57,839
Equity securities, at fair value (cost $5,468 and $5,157)	6,434	5,666
Mortgage loans	4,322	4,486
Limited partnership interests	6,600	5,814
Short-term, at fair value (amortized cost $2,198 and $4,288)	2,198	4,288
Other	3,826	3,706
Total investments	82,771	81,799
Cash	690	436
Premium installment receivables, net	5,922	5,597
Deferred policy acquisition costs	4,147	3,954
Reinsurance recoverables, net	9,748	8,745
Accrued investment income	590	567
Property and equipment, net	1,067	1,065
Goodwill	2,309	1,219
Other assets	2,966	1,835
Separate Accounts	3,422	3,393
Total assets	113,632	108,610
Liabilities
Reserve for property-liability insurance claims and claims expense	27,154	25,250
Reserve for life-contingent contract benefits	12,227	12,239
Contractholder funds	19,650	20,260
Unearned premiums	13,535	12,583
Claim payments outstanding	959	879
Deferred income taxes	1,249	487
Other liabilities and accrued expenses	6,968	6,599
Long-term debt	6,349	6,347
Separate Accounts	3,422	3,393
Total liabilities	91,513	88,037
Commitments and Contingent Liabilities (Note 11)
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 72.2 thousand shares 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, 360 million and 366 million shares outstanding	9	9
Additional capital paid-in	3,330	3,303
Retained income	42,125	40,678
Deferred ESOP expense	(6)	(6)
Treasury stock, at cost (540 million and 534 million shares)	(25,413)	(24,741)
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	68	57
Other unrealized net capital gains and losses	1,715	1,091
Unrealized adjustment to DAC, DSI and insurance reserves	(132)	(95)
Total unrealized net capital gains and losses	1,651	1,053
Unrealized foreign currency translation adjustments	(14)	(50)
Unrecognized pension and other postretirement benefit cost	(1,309)	(1,419)
Total accumulated other comprehensive income (loss)	328	(416)
Total shareholders’ equity	22,119	20,573
Total liabilities and shareholders’ equity	$ 113,632	$ 108,610

Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Fixed income securities, at fair value, amortized cost (in dollars)	$ 57,608	$ 56,576
Equity securities, at fair value, cost (in dollars)	5,468	5,157
Short-term, at fair value, amortized cost (in dollars)	$ 2,198	$ 4,288
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 shares)	$ 1,805	$ 1,805
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000.0	2,000,000,000.0
Common stock, shares issued (in shares)	900,000,000	900,000,000
Common stock, shares outstanding (in shares)	360,000,000	366,000,000
Treasury Stock, shares (in shares)	540,000,000	534,000,000

Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions	Total	Preferred Stock	Preferred stock additional capital paid-in	Common stock	Additional capital paid-in	Retained income	Deferred ESOP expense	Treasury stock	Accumulated other comprehensive (loss) income
Balance, beginning of period at Dec. 31, 2015					$ 3,245	$ 39,413		$ (23,620)	$ (755)
Increase (decrease) in equity
Forward contract on accelerated share repurchase agreement					(37)
Equity incentive plans activity					29
Net income	$ 1,037					1,037
Dividends on common stock						(373)
Dividends on preferred stock						(87)
Shares acquired								(1,094)
Shares reissued under equity incentive plans, net								177
Change in unrealized net capital gains and losses	1,197								1,197
Change in unrealized foreign currency translation adjustments	12								12
Change in unrecognized pension and other postretirement benefit cost	48								48
Balance, end of period at Sep. 30, 2016	$ 20,934		$ 1,746	$ 9	3,237	39,990	$ (13)	(24,537)	502
Preferred stock, par value (in dollars per share)		$ 0
Preferred stock, par value (in dollars per share)	$ 1
Balance, beginning of period at Dec. 31, 2016					3,303	40,678		(24,741)	(416)
Increase (decrease) in equity
Forward contract on accelerated share repurchase agreement					0
Equity incentive plans activity					27
Net income	$ 1,940					1,940
Dividends on common stock						(406)
Dividends on preferred stock						(87)
Shares acquired								(845)
Shares reissued under equity incentive plans, net								173
Change in unrealized net capital gains and losses	598								598
Change in unrealized foreign currency translation adjustments	36								36
Change in unrecognized pension and other postretirement benefit cost	110								110
Balance, end of period at Sep. 30, 2017	$ 22,119		$ 1,746	$ 9	$ 3,330	$ 42,125	$ (6)	$ (25,413)	$ 328
Preferred stock, par value (in dollars per share)	$ 1	$ 0

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income	$ 1,940	$ 1,037
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	358	285
Realized capital gains and losses	(318)	92
Gain on disposition of operations	(15)	(4)
Interest credited to contractholder funds	522	558
Changes in:
Policy benefits and other insurance reserves	1,276	978
Unearned premiums	525	540
Deferred policy acquisition costs	(176)	(159)
Premium installment receivables, net	(267)	(236)
Reinsurance recoverables, net	(1,017)	(420)
Income taxes	119	30
Other operating assets and liabilities	267	41
Net cash provided by operating activities	3,214	2,742
Proceeds from sales
Fixed income securities	19,508	19,132
Equity securities	5,179	4,069
Limited partnership interests	767	634
Other investments	170	206
Investment collections
Fixed income securities	3,038	3,430
Mortgage loans	477	403
Other investments	458	281
Investment purchases
Fixed income securities	(23,935)	(22,282)
Equity securities	(5,296)	(4,113)
Limited partnership interests	(1,082)	(1,128)
Mortgage loans	(311)	(460)
Other investments	(700)	(674)
Change in short-term investments, net	2,257	94
Change in other investments, net	(28)	(60)
Purchases of property and equipment, net	(216)	(190)
Acquisition of operations	(1,356)	0
Net cash used in investing activities	(1,070)	(658)
Cash flows from financing activities
Repayments of long-term debt	0	(16)
Contractholder fund deposits	767	785
Contractholder fund withdrawals	(1,416)	(1,537)
Dividends paid on common stock	(391)	(364)
Dividends paid on preferred stock	(87)	(87)
Treasury stock purchases	(848)	(1,154)
Shares reissued under equity incentive plans, net	132	123
Excess tax benefits on share-based payment arrangements	0	25
Other	(47)	35
Net cash used in financing activities	(1,890)	(2,190)
Net increase (decrease) in cash	254	(106)
Cash at beginning of period	436	495
Cash at end of period	$ 690	$ 389

General	9 Months Ended
General	Sep. 30, 2017
General [Abstract]
General	General Basis of presentation The accompanying condensed 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 condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of September 30, 2017 and for the three-month and nine-month periods ended September 30, 2017 and 2016 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated. Adopted accounting standards Employee Share-Based Payment Accounting Effective January 1, 2017, the Company adopted new Financial Accounting Standards Board (“FASB”) guidance that amends the accounting for share-based payments on a prospective basis. Under the new guidance, reporting entities are required to recognize all tax effects related to share-based payments at settlement or expiration through the income statement and the requirement to delay recognition of certain tax benefits until they reduce current taxes payable is eliminated. The new guidance also permits employers to withhold shares issued in connection with an employee’s exercise of options or the settlement of stock awards, up to the employee’s maximum individual statutory tax rate, to meet tax withholding requirements without causing liability classification of the award. In addition, all tax-related cash flows resulting from share-based payments are reported as operating activities on the statement of cash flows whereas cash payments made to taxing authorities on an employee’s behalf for withheld shares are presented as financing activities. The adoption of this guidance had no impact on the Company’s results of operations or financial position on the date of adoption. Transition to Equity Method Accounting Effective January 1, 2017, the Company adopted new FASB 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 applied prospectively to investments that qualify for EMA after application of the cost method of accounting. Accordingly, the adoption of this guidance 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’s principal activities impacted by the standard are those related to the issuance of protection plans for consumer products and automobiles and service contracts that provide roadside assistance. The impacts include an increase in deferred revenue with a corresponding increase in deferred costs for protection plans that are sold directly to retailers for which Allstate is deemed to be the principal in the transaction. The anticipated impacts of this adjustment offset and will not impact net income, but result in an increase in unearned premiums and deferred policy acquisition costs of approximately $145 million to $175 million, pre-tax. The Company also anticipates impacts related to recognizing revenue for SquareTrade based on expected losses, accounting for variable consideration and the deferral of certain costs associated with acquiring service contracts that provide roadside assistance, the net impact of which is not expected to materially reduce shareholders’ equity at the date of adoption. Based on the Company’s assessment, the total impact of adoption will not 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 which results in no impact to the Company’s results of operations at the date of adoption. The new guidance related to equity investments without readily determinable fair values is applied prospectively as of the date of adoption. The most significant anticipated impacts, using values as of September 30, 2017, relate to the change in accounting for equity securities, where $966 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 of these investments would increase by approximately $200 million, pre-tax, with the offsetting after-tax adjustment recognized in retained income. The after-tax change in accounting for equity securities will not affect the Company’s shareholders’ equity and the unrealized net capital gains reclassified to retained income will never be recognized in net income. The after-tax change in accounting for cost method limited partnerships, if adopted at the end of this reporting period, would increase the Company’s shareholders’ equity, while also decreasing net income return on shareholders’ equity. The amount by which the fair value of cost method limited partnerships exceeds their carrying value will never be recognized in net income. Accounting for Leases In February 2016, the FASB issued guidance revising 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. 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. 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, including reinsurance recoverables. 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 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 a valuation 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 which 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, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect a reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether 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, including goodwill, over their respective fair values, a measure that is not currently determinable. Presentation of Net Periodic Pension and Postretirement Benefits Costs In March 2017, the FASB issued guidance to improve the presentation of net periodic pension and postretirement benefits costs that requires the service cost component to be reported in operating expenses together with other employee compensation costs and all other components of net periodic pension and postretirement benefits costs reported in non-operating expenses. If the reporting entity does not separately report operating and non-operating expenses on the statement of operations it is required to identify, on the statement of operations or in disclosures, the line items in which the components of net periodic pension and postretirement benefits costs are presented. The new guidance permits only the service cost component to be eligible for capitalization where applicable. The guidance is effective for annual periods beginning after December 15, 2017 and for interim periods within those annual periods. The guidance is to be applied on a prospective basis for capitalization of service costs where applicable and on a retrospective basis for the presentation of the service cost and other components of net periodic pension benefit costs in the statements of operations or in disclosures. The impact of adoption is not expected to be material to the Company’s results of operations or financial position. Accounting for Hedging Activities In August 2017, the FASB issued amendments intended to better align hedge accounting with an organization’s risk management activities. The amendments expand hedge accounting for nonfinancial and financial risk components and revise the measurement methodologies to better align with an organization’s risk management activities. Separate presentation of hedge ineffectiveness is eliminated to provide greater transparency of the full impact of hedging by requiring presentation of the results of the hedged item and hedging instrument in a single financial statement line item. In addition, the amendments reduce complexity by simplifying the manner in which assessments of hedge effectiveness may be performed. The guidance is effective for annual periods beginning after December 15, 2018 and for interim periods within those annual periods. The presentation and disclosure guidance is effective on a prospective basis. The impact of adoption is not expected to be material to the Company’s results of operations or financial position.

Earnings per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

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 is presented in the following table.



($ in millions, except per share data)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Numerator:
Net income	$	666	$	520	$	1,940	$	1,037
Less: Preferred stock dividends	29		29		87		87
Net income applicable to common shareholders ⁽¹⁾	$	637	$	491	$	1,853	$	950

Denominator:
Weighted average common shares outstanding	361.3		371.5		363.5		374.4
Effect of dilutive potential common shares:
Stock options	4.4		3.2		4.3		3.3
Restricted stock units (non-participating) and performance stock awards	1.4		1.2		1.3		1.2
Weighted average common and dilutive potential common shares outstanding	367.1		375.9		369.1		378.9

Earnings per common share - Basic	$	1.76	$	1.32	$	5.10	$	2.54
Earnings per common share - Diluted	$	1.74	$	1.31	$	5.02	$	2.51

_____________________________


⁽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 0.2 million and 3.6 million Allstate common shares, with exercise prices ranging from $78.35 to $93.93 and $58.14 to $71.29, were outstanding for the three-month periods ended September 30, 2017 and 2016, respectively, but were not included in the computation of diluted earnings per common share in those periods. Options to purchase 2.5 million and 4.7 million Allstate common shares, with exercise prices ranging from $74.03 to $93.93 and $57.29 to $71.29, were outstanding for the nine-month periods ended September 30, 2017 and 2016, respectively, but were not included in the computation of diluted earnings per common share in those periods.

Acquisition	9 Months Ended
Acquisition	Sep. 30, 2017
Business Combinations [Abstract]
Acquisition	Acquisition On January 3, 2017, the Company acquired SquareTrade Holding Company, Inc. (“SquareTrade”), a consumer product protection plan provider that distributes through many of America’s major retailers and Europe’s mobile operators, for $1.4 billion in cash. SquareTrade provides protection plans primarily covering consumer appliances and electronics, such as TVs, smartphones and computers. This acquisition broadens Allstate’s unique product offerings to better meet consumers’ needs. In connection with the acquisition, the Company recorded goodwill of $1.08 billion, commissions paid to retailers (reported in deferred policy acquisition costs) of $70 million, other intangible assets (reported in other assets) of $555 million, contractual liability insurance policy premium expenses (reported in other assets) of $201 million, unearned premiums of $373 million and net deferred income tax liability of $140 million. The Company increased goodwill by $14 million through third quarter 2017 related to an adjustment to the fair value of the opening balance sheet liabilities. As of September 30, 2017, the Company has $30 million of restricted cash related to an escrow account in connection with the acquisition that is recorded in other assets.

Reportable Segments

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Reportable Segments

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



($ in millions)	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017		2016
Property-Liability
Property-liability insurance premiums
Auto	$	5,502	$	5,353		$	16,327	$	15,879
Homeowners	1,832		1,813			5,462		5,438
Other personal lines	439		426			1,306		1,271
Commercial lines	124		127			367		383
Other business lines	146		150			429		435
SquareTrade	78		—			207		—
Allstate Protection	8,121		7,869			24,098		23,406
Discontinued Lines and Coverages	—		—			—		—
Total property-liability insurance premiums	8,121		7,869			24,098		23,406
Net investment income	372		310			1,074		928
Realized capital gains and losses	82		53			302		(20		)
Total Property-Liability	8,575		8,232			25,474		24,314
Allstate Financial
Life and annuity premiums and contract charges
Premiums
Traditional life insurance	153		145			450		422
Accident and health insurance	232		216			697		646
Total premiums	385		361			1,147		1,068
Contract charges
Interest-sensitive life insurance	204		206			620		623
Fixed annuities	4		4			10		10
Total contract charges	208		210			630		633
Total life and annuity premiums and contract charges	593		571			1,777		1,701
Net investment income	461		427			1,383		1,281
Realized capital gains and losses	21		(21		)	16		(70		)
Total Allstate Financial	1,075		977			3,176		2,912
Corporate and Other
Net investment income	10		11			31		32
Realized capital gains and losses	—		1			—		(2		)
Total Corporate and Other	10		12			31		30
Consolidated revenues	$	9,660	$	9,221		$	28,681	$	27,256

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



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Property-Liability
Underwriting income
Allstate Protection	$	517		$	455		$	1,258		$	518
Discontinued Lines and Coverages	(88		)	(100		)	(95		)	(104		)
Total underwriting income	429			355			1,163			414
Net investment income	372			310			1,074			928
Income tax expense on operations	(252		)	(218		)	(703		)	(429		)
Realized capital gains and losses, after-tax	54			36			199			(10		)
Gain on disposition of operations, after-tax	1			—			7			—
Property-Liability net income applicable to common shareholders	604			483			1,740			903
Allstate Financial
Life and annuity premiums and contract charges	593			571			1,777			1,701
Net investment income	461			427			1,383			1,281
Contract benefits and interest credited to contractholder funds	(629		)	(667		)	(1,935		)	(1,939		)
Operating costs and expenses and amortization of deferred policy acquisition costs	(188		)	(194		)	(597		)	(577		)
Restructuring and related charges	(1		)	—			(2		)	(1		)
Income tax expense on operations	(79		)	(43		)	(206		)	(147		)
Operating income	157			94			420			318
Realized capital gains and losses, after-tax	13			(14		)	9			(46		)
Valuation changes on embedded derivatives that are not hedged, after-tax	(1		)	—			(2		)	(8		)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(2		)	(1		)	(8		)	(3		)
Gain on disposition of operations, after-tax	1			1			3			3
Allstate Financial net income applicable to common shareholders	168			80			422			264
Corporate and Other
Net investment income	10			11			31			32
Operating costs and expenses	(175		)	(80		)	(360		)	(238		)
Income tax benefit on operations	60			26			121			77
Preferred stock dividends	(29		)	(29		)	(87		)	(87		)
Operating loss	(134		)	(72		)	(295		)	(216		)
Realized capital gains and losses, after-tax	—			—			—			(1		)
Business combination expenses, after-tax	(1		)	—			(14		)	—
Corporate and Other net loss applicable to common shareholders	(135		)	(72		)	(309		)	(217		)
Consolidated net income applicable to common shareholders	$	637		$	491		$	1,853		$	950

Investments

9 Months Ended

Sep. 30, 2017

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
September 30, 2017
U.S. government and agencies	$	3,843	$	65	$	(8	)	$	3,900
Municipal	7,484		332		(22		)	7,794
Corporate	43,259		1,419		(132		)	44,546
Foreign government	1,077		30		(14		)	1,093
Asset-backed securities (“ABS”)	1,263		16		(9		)	1,270
Residential mortgage-backed securities (“RMBS”)	512		101		(2		)	611
Commercial mortgage-backed securities (“CMBS”)	149		8		(4		)	153
Redeemable preferred stock	21		3		—			24
Total fixed income securities	$	57,608	$	1,974	$	(191	)	$	59,391


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

Scheduled maturities

The scheduled maturities for fixed income securities are as follows as of September 30, 2017:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	4,392	$	4,415
Due after one year through five years	29,466		30,044
Due after five years through ten years	16,604		17,042
Due after ten years	5,222		5,856
	55,684		57,357
ABS, RMBS and CMBS	1,924		2,034
Total	$	57,608	$	59,391

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 is as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Fixed income securities	$	519		$	508		$	1,564		$	1,546
Equity securities	37			31			130			103
Mortgage loans	52			56			157			162
Limited partnership interests	223			136			596			383
Short-term investments	9			4			21			11
Other	58			55			174			163
Investment income, before expense	898			790			2,642			2,368
Investment expense	(55		)	(42		)	(154		)	(127		)
Net investment income	$	843		$	748		$	2,488		$	2,241

Realized capital gains and losses

Realized capital gains and losses by asset type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Fixed income securities	$	41		$	(1	)	$	78		$	(48	)
Equity securities	57			45			182			(34		)
Mortgage loans	1			—			1			1
Limited partnership interests	21			12			92			25
Derivatives	(17		)	(15		)	(40		)	(22		)
Other	—			(8		)	5			(14		)
Realized capital gains and losses	$	103		$	33		$	318		$	(92	)

Realized capital gains and losses by transaction type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Impairment write-downs	$	(23	)	$	(63	)	$	(94	)	$	(185	)
Change in intent write-downs	(5		)	(10		)	(43		)	(48		)
Net other-than-temporary impairment losses recognized in earnings	(28		)	(73		)	(137		)	(233		)
Sales and other	148			121			495			166
Valuation and settlements of derivative instruments	(17		)	(15		)	(40		)	(25		)
Realized capital gains and losses	$	103		$	33		$	318		$	(92	)

Gross gains of $145 million and $150 million and gross losses of $36 million and $62 million were realized on sales of fixed income and equity securities during the three months ended September 30, 2017 and 2016, respectively. Gross gains of $521 million and $456 million and gross losses of $161 million and $347 million were realized on sales of fixed income and equity securities during the nine months ended September 30, 2017 and 2016, respectively.

Other-than-temporary impairment losses by asset type are as follows:



($ in millions)	Three months ended September 30, 2017									Three months ended September 30, 2016
	Gross			Included in OCI			Net			Gross			Included in OCI		Net
Fixed income securities:
Corporate	$	—		$	—		$	—		$	(13	)	$	—	$	(13	)
ABS	—			(1		)	(1		)	—			—		—
RMBS	—			—			—			(1		)	—		(1		)
CMBS	(1		)	(1		)	(2		)	(3		)	—		(3		)
Total fixed income securities	(1		)	(2		)	(3		)	(17		)	—		(17		)
Equity securities	(8		)	—			(8		)	(27		)	—		(27		)
Mortgage loans	(1		)	—			(1		)	—			—		—
Limited partnership interests	(16		)	—			(16		)	(22		)	—		(22		)
Other	—			—			—			(7		)	—		(7		)
Other-than-temporary impairment losses	$	(26	)	$	(2	)	$	(28	)	$	(73	)	$	—	$	(73	)

	Nine months ended September 30, 2017									Nine months ended September 30, 2016
	Gross			Included in OCI			Net			Gross			Included in OCI		Net
Fixed income securities:
Municipal	$	(1	)	$	(2	)	$	(3	)	$	—		$	—	$	—
Corporate	(9		)	3			(6		)	(30		)	7		(23		)
ABS	(1		)	(1		)	(2		)	(6		)	—		(6		)
RMBS	(1		)	(3		)	(4		)	(1		)	—		(1		)
CMBS	(9		)	1			(8		)	(7		)	1		(6		)
Total fixed income securities	(21		)	(2		)	(23		)	(44		)	8		(36		)
Equity securities	(77		)	—			(77		)	(155		)	—		(155		)
Mortgage loans	(1		)	—			(1		)	—			—		—
Limited partnership interests	(32		)	—			(32		)	(33		)	—		(33		)
Other	(4		)	—			(4		)	(9		)	—		(9		)
Other-than-temporary impairment losses	$	(135	)	$	(2	)	$	(137	)	$	(241	)	$	8	$	(233	)

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 amounts exclude $213 million and $221 million as of September 30, 2017 and December 31, 2016, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



($ in millions)	September 30, 2017			December 31, 2016
Municipal	$	(5	)	$	(8	)
Corporate	(3		)	(7		)
ABS	(15		)	(21		)
RMBS	(80		)	(90		)
CMBS	(5		)	(7		)
Total	$	(108	)	$	(133	)

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



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Beginning balance	$	(281	)	$	(331	)	$	(318	)	$	(392	)
Additional credit loss for securities previously other-than-temporarily impaired	(3		)	(3		)	(15		)	(14		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			(14		)	(8		)	(22		)
Reduction in credit loss for securities disposed or collected	20			12			76			92
Change in credit loss due to accretion of increase in cash flows	—			—			1			—
Ending balance	$	(264	)	$	(336	)	$	(264	)	$	(336	)

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)
September 30, 2017	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	59,391	$	1,974	$	(191	)	$	1,783
Equity securities	6,434		1,006		(40		)	966
Short-term investments	2,198		—		—			—
Derivative instruments ⁽¹⁾	1		2		(4		)	(2		)
Equity method (“EMA”) limited partnerships ⁽²⁾								—
Unrealized net capital gains and losses, pre-tax								2,747
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(203		)
Amounts recognized								(203		)
Deferred income taxes								(893		)
Unrealized net capital gains and losses, after-tax								$	1,651

_______________


⁽¹⁾	Included in the fair value of derivative instruments is $1 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, 2016	Fair value		Gains		Losses			Unrealized net 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								(4		)
Unrealized net capital gains and losses, pre-tax								1,770
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(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.

Change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the nine months ended September 30, 2017 is as follows:



($ in millions)
Fixed income securities	$	520
Equity securities	457
Derivative instruments	(4		)
EMA limited partnerships	4
Total	977
Amounts recognized for:
Insurance reserves	—
DAC and DSI	(57		)
Amounts recognized	(57		)
Deferred income taxes	(322		)
Increase in unrealized net capital gains and losses, after-tax	$	598

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						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
September 30, 2017
Fixed income securities
U.S. government and agencies	64	$	2,625	$	(7	)	7	$	93	$	(1	)	$	(8	)
Municipal	938	1,736		(14		)	83	172		(8		)	(22		)
Corporate	560	7,468		(74		)	94	1,370		(58		)	(132		)
Foreign government	68	697		(14		)	—	—		—			(14		)
ABS	44	379		(1		)	10	34		(8		)	(9		)
RMBS	84	42		—			176	57		(2		)	(2		)
CMBS	5	20		(2		)	4	15		(2		)	(4		)
Total fixed income securities	1,763	12,967		(112		)	374	1,741		(79		)	(191		)
Equity securities	129	544		(30		)	17	48		(10		)	(40		)
Total fixed income and equity securities	1,892	$	13,511	$	(142	)	391	$	1,789	$	(89	)	$	(231	)
Investment grade fixed income securities	1,689	$	12,345	$	(96	)	323	$	1,530	$	(53	)	$	(149	)
Below investment grade fixed income securities	74	622		(16		)	51	211		(26		)	(42		)
Total fixed income securities	1,763	$	12,967	$	(112	)	374	$	1,741	$	(79	)	$	(191	)

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	)

As of September 30, 2017, $188 million of the $231 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 $188 million, $133 million are related to unrealized losses on investment grade fixed income securities and $28 million are related to equity securities. Of the remaining $27 million, $16 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 September 30, 2017, the remaining $43 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 $16 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 $43 million, $15 million are related to below investment grade fixed income securities and $12 million are related to equity securities. Of these amounts, $2 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 September 30, 2017.

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, and (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. 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 September 30, 2017, 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 September 30, 2017, 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 September 30, 2017 and December 31, 2016, the carrying value of equity method limited partnerships totaled $5.26 billion and $4.53 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 September 30, 2017 and December 31, 2016, the carrying value for cost method limited partnerships was $1.34 billion and $1.28 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

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 September 30, 2017.

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.



($ in millions)	September 30, 2017						December 31, 2016
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	$	4	$	—	$	4	$	60	$	—	$	60
1.0 - 1.25	349		—		349		324		—		324
1.26 - 1.50	1,111		—		1,111		1,293		—		1,293
Above 1.50	2,804		39		2,843		2,765		39		2,804
Total non-impaired mortgage loans	$	4,268	$	39	$	4,307	$	4,442	$	39	$	4,481

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 is as follows:



($ in millions)	September 30, 2017		December 31, 2016
Impaired mortgage loans with a valuation allowance	$	15	$	5
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	15	$	5
Valuation allowance on impaired mortgage loans	$	4	$	3

The average balance of impaired loans was $8 million and $6 million for the nine months ended September 30, 2017 and 2016, respectively.

The rollforward of the valuation allowance on impaired mortgage loans is as follows:



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Beginning balance	$	3	$	3	$	3	$	3
Net increase in valuation allowance	1		—		1		—
Charge offs	—		—		—		—
Ending balance	$	4	$	3	$	4	$	3

Payments on all mortgage loans were current as of September 30, 2017 and December 31, 2016.

Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2017

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 Condensed 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, cost method 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 condensed consolidated financial statements.

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.

Over-the-counter (“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, implied volatilities, currency rates, and 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 September 30, 2017.



($ 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 September 30, 2017
Assets
Fixed income securities:
U.S. government and agencies	$	3,190		$	710		$	—					$	3,900
Municipal	—			7,687			107						7,794
Corporate - public	—			32,269			104						32,373
Corporate - privately placed	—			11,923			250						12,173
Foreign government	—			1,093			—						1,093
ABS - CDO	—			545			19						564
ABS - consumer and other	—			640			66						706
RMBS	—			611			—						611
CMBS	—			127			26						153
Redeemable preferred stock	—			24			—						24
Total fixed income securities	3,190			55,629			572						59,391
Equity securities	5,938			328			168						6,434
Short-term investments	380			1,818			—						2,198
Other investments: Free-standing derivatives	—			109			1			$	(9	)	101
Separate account assets	3,422			—			—						3,422
Other assets	1			—			—						1
Total recurring basis assets	12,931			57,884			741			(9		)	71,547
Non-recurring basis⁽¹⁾	—			—			24						24
Total assets at fair value	$	12,931		$	57,884		$	765		$	(9	)	$	71,571
% of total assets at fair value	18.0		%	80.9		%	1.1		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(292	)				$	(292	)
Other liabilities: Free-standing derivatives	(1		)	(69		)	—			$	21		(49		)
Total liabilities at fair value	$	(1	)	$	(69	)	$	(292	)	$	21		$	(341	)
% of total liabilities at fair value	0.3		%	20.2		%	85.6		%	(6.1		)%	100		%

_______________


⁽¹⁾	Includes $14 million of limited partnership interests and $10 million of mortgage loans 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, 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		%
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		%

_______________


⁽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 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
September 30, 2017
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(253	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74%
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%

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 September 30, 2017 and December 31, 2016, Level 3 fair value measurements of fixed income securities total $572 million and $558 million, respectively, and include $304 million and $307 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $62 million and $80 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 three months ended September 30, 2017.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2017			Net income ⁽¹⁾			OCI		Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	114		$	—		$	—	$	—		$	(4	)
Corporate - public	60			—			—		—			(4		)
Corporate - privately placed	266			1			2		—			(34		)
ABS - CDO	91			—			1		—			(68		)
ABS - consumer and other	120			—			—		—			(62		)
CMBS	24			—			—		—			—
Total fixed income securities	675			1			3		—			(172		)
Equity securities	166			2			1		—			(1		)
Free-standing derivatives, net	1			—			—		—			—
Total recurring Level 3 assets	$	842		$	3		$	4	$	—		$	(173	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(285	)	$	(9	)	$	—	$	—		$	—
Total recurring Level 3 liabilities	$	(285	)	$	(9	)	$	—	$	—		$	—

	Purchases			Sales			Issues		Settlements			Balance as of September 30, 2017
Assets
Fixed income securities:
Municipal	$	1		$	(3	)	$	—	$	(1	)	$	107
Corporate - public	51			(1		)	—		(2		)	104
Corporate - privately placed	18			(1		)	—		(2		)	250
ABS - CDO	—			—			—		(5		)	19
ABS - consumer and other	10			—			—		(2		)	66
CMBS	3			—			—		(1		)	26
Total fixed income securities	83			(5		)	—		(13		)	572
Equity securities	—			—			—		—			168
Free-standing derivatives, net	—			—			—		—			1			⁽²⁾
Total recurring Level 3 assets	$	83		$	(5	)	$	—	$	(13	)	$	741
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—	$	2		$	(292	)
Total recurring Level 3 liabilities	$	—		$	—		$	—	$	2		$	(292	)

_____________


⁽¹⁾	The effect to net income totals $(6) million and is reported in the Condensed Consolidated Statements of Operations as follows: $3 million in net investment income, $(5) million in interest credited to contractholder funds and $(4) million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the nine months ended September 30, 2017.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2016			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	125		$	(1	)	$	6		$	—		$	(5	)
Corporate - public	78			—			—			—			(20		)
Corporate - privately placed	263			7			—			30			(34		)
ABS - CDO	27			—			3			30			(190		)
ABS - consumer and other	42			—			—			—			(69		)
RMBS	1			—			—			—			—
CMBS	22			—			—			—			—
Total fixed income securities	558			6			9			60			(318		)
Equity securities	163			15			4			—			(4		)
Short-term investments	15			—			—			—			—
Free-standing derivatives, net	(2		)	3			—			—			—
Other assets	1			(1		)	—			—			—
Total recurring Level 3 assets	$	735		$	23		$	13		$	60		$	(322	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(290	)	$	(6	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(290	)	$	(6	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2017
Assets
Fixed income securities:
Municipal	$	6		$	(23	)	$	—		$	(1	)	$	107
Corporate - public	50			—			—			(4		)	104
Corporate - privately placed	22			(30		)	—			(8		)	250
ABS - CDO	160			—			—			(11		)	19
ABS - consumer and other	99			—			—			(6		)	66
RMBS	—			—			—			(1		)	—
CMBS	6			—			—			(2		)	26
Total fixed income securities	343			(53		)	—			(33		)	572
Equity securities	3			(13		)	—			—			168
Short-term investments	25			(40		)	—			—			—
Free-standing derivatives, net	—			—			—			—			1			⁽²⁾
Other assets	—			—			—			—			—
Total recurring Level 3 assets	$	371		$	(106	)	$	—		$	(33	)	$	741
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	5		$	(292	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	5		$	(292	)

_____________


⁽¹⁾	The effect to net income totals $17 million and is reported in the Condensed Consolidated Statements of Operations as follows: $7 million in realized capital gains and losses, $17 million in net investment income, $(11) million in interest credited to contractholder funds and $4 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended September 30, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2016			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	149		$	1		$	(1	)	$	—		$	—
Corporate - public	74			—			—			—			(6		)
Corporate - privately placed	585			—			2			—			(280		)
ABS - CDO	33			—			3			—			—
ABS - consumer and other	45			—			—			—			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	907			1			4			—			(286		)
Equity securities	118			(1		)	—			—			—
Free-standing derivatives, net	(7		)	4			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,019		$	4		$	4		$	—		$	(286	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(304	)	$	(3	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(304	)	$	(3	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2016
Assets
Fixed income securities:
Municipal	$	22		$	(11	)	$	—		$	—		$	160
Corporate - public	40			(10		)	—			—			98
Corporate - privately placed	38			—			—			(29		)	316
ABS - CDO	40			—			—			(2		)	74
ABS - consumer and other	35			—			—			(1		)	79
RMBS	—			—			—			—			1
CMBS	3			—			—			—			23
Total fixed income securities	178			(21		)	—			(32		)	751
Equity securities	43			—			—			—			160
Free-standing derivatives, net	—			—			—			—			(3		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	221		$	(21	)	$	—		$	(32	)	$	909
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	1		$	(307	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	1		$	(307	)

_____________________


⁽¹⁾	The effect to net income totals $1 million and is reported in the Condensed Consolidated Statements of Operations as follows: $1 million in realized capital gains and losses, $3 million in net investment income, $(6) million in interest credited to contractholder funds and $3 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $4 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 nine months ended September 30, 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			11			(6		)	6			—
Corporate - public	46			—			1			25			(13		)
Corporate - privately placed	502			4			15			16			(363		)
ABS - CDO	61			—			5			10			(3		)
ABS - consumer and other	50			—			(2		)	3			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	846			15			13			60			(383		)
Equity securities	133			(33		)	8			—			—
Free-standing derivatives, net	(7		)	4			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	973		$	(14	)	$	21		$	60		$	(383	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(299	)	$	(11	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(299	)	$	(11	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	—
Municipal	22			(33		)	—			(1		)	160
Corporate - public	47			(6		)	—			(2		)	98
Corporate - privately placed	181			—			—			(39		)	316
ABS - CDO	40			(2		)	—			(37		)	74
ABS - consumer and other	35			(5		)	—			(2		)	79
RMBS	—			—			—			—			1
CMBS	5			—			—			(2		)	23
Total fixed income securities	330			(46		)	—			(84		)	751
Equity securities	52			—			—			—			160
Free-standing derivatives, net	—			—			—			—			(3		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	382		$	(46	)	$	—		$	(84	)	$	909
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(2	)	$	5		$	(307	)
Total recurring Level 3 liabilities	$	—		$	—		$	(2	)	$	5		$	(307	)

_____________________


⁽¹⁾	The effect to net income totals $(25) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(24) million in realized capital gains and losses, $10 million in net investment income, $(12) million in interest credited to contractholder funds and $1 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $4 million of 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 the three months and nine months ended September 30, 2017 or 2016.

Transfers into Level 3 during the nine months ended September 30, 2017 and 2016 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 the three months and nine months ended September 30, 2017 and 2016 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 September 30.



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Assets
Fixed income securities:
Municipal	$	—		$	1		$	(3	)	$	2
Corporate	1			—			1			1
Total fixed income securities	1			1			(2		)	3
Equity securities	2			(1		)	16			(33		)
Free-standing derivatives, net	(3		)	4			—			4
Other assets	—			—			(1		)	—
Total recurring Level 3 assets	$	—		$	4		$	13		$	(26	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(9	)	$	(3	)	$	(6	)	$	(11	)
Total recurring Level 3 liabilities	$	(9	)	$	(3	)	$	(6	)	$	(11	)

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 $(9) million for the three months ended September 30, 2017 and are reported as follows: $(3) million in realized capital gains and losses, $3 million in net investment income, $(5) million in interest credited to contractholder funds and $(4) million in life and annuity contract benefits. These gains and losses total $1 million for the three months ended September 30, 2016 and are reported as follows: $1 million in realized capital gains and losses, $3 million in net investment income, $(6) million in interest credited to contractholder funds and $3 million in life and annuity contract benefits. These gains and losses total $7 million for the nine months ended September 30, 2017 and are reported as follows: $(3) million in realized capital gains and losses, $17 million in net investment income, $(11) million in interest credited to contractholder funds and $4 million in life and annuity contract benefits. These gains and losses total $(37) million for the nine months ended September 30, 2016 and are reported as follows: $(37) million in realized capital gains and losses, $11 million in net investment income, $(12) million in interest credited to contractholder funds and $1 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)	September 30, 2017				December 31, 2016
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	4,322	$	4,535	$	4,486	$	4,514
Cost method limited partnerships	1,339		1,579		1,282		1,493
Bank loans	1,731		1,734		1,669		1,677
Agent loans	523		520		467		467

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)	September 30, 2017				December 31, 2016
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	10,618	$	11,203	$	11,313	$	12,009
Long-term debt	6,349		7,161		6,347		6,920
Liability for collateral	1,156		1,156		1,129		1,129

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 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

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative 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. 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 and options to increase equity exposure.

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 and options to offset valuation losses in the equity portfolio during periods of declining equity market values. 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 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.

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 Condensed 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 September 30, 2017, the Company pledged $35 million 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 Condensed Consolidated Statement of Financial Position as of September 30, 2017.



($ 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	$	1		$	2	$	(1	)
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	41		n/a	1			1		—
Equity and index contracts
Options	Other investments	173		6,301	96			96		—
Financial futures contracts	Other assets	—		1,866	1			1		—
Foreign currency contracts
Foreign currency forwards	Other investments	322		n/a	(6		)	3		(9		)
Credit default contracts
Credit default swaps – buying protection	Other investments	104		n/a	(2		)	1		(3		)
Credit default swaps – selling protection	Other investments	100		n/a	1			1		—
Other contracts
Other contracts	Other assets	3		n/a	—			—		—
Subtotal		743		8,167	91			103		(12		)
Total asset derivatives		$	792	8,167	$	92		$	105	$	(13	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	11	n/a	$	—		$	—	$	—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	595		5,895	(34		)	2		(36		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	568		n/a	(8		)	3		(11		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	234		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	274		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,764		n/a	(253		)	—		(253		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	416		n/a	(9		)	1		(10		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		3,867		5,895	(343		)	$	6	$	(349	)
Total derivatives		$	4,659	14,062	$	(251	)

__________________


⁽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)

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		)
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)

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
September 30, 2017
Asset derivatives	$	12		$	(19	)	$	10	$	3		$	—		$	3
Liability derivatives	(28		)	19			2		(7		)	3			(4		)

December 31, 2016
Asset derivatives	$	31		$	(28	)	$	19	$	22		$	(9	)	$	13
Liability derivatives	(33		)	28			—		(5		)	4			(1		)

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships. Amortization of net losses 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 for the three months and nine months ended September 30, 2017 or 2016.



($ in millions)	Three months ended September 30,					Nine months ended September 30,
	2017			2016		2017			2016
Loss recognized in OCI on derivatives during the period	$	(3	)	$	—	$	(5	)	$	(1	)
(Loss) gain recognized in OCI on derivatives during the term of the hedging relationship	(2		)	1		(2		)	1
(Loss) gain reclassified from AOCI into income (net investment income)	(2		)	1		(1		)	1
Gain reclassified from AOCI into income (realized capital gains and losses)	—			—		—			3

The following tables present gains and losses from valuation and settlements reported on derivatives not designated as accounting hedging instruments in the Condensed Consolidated Statements of Operations. For the three months and nine months ended September 30, 2017 and 2016, 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			Total gain (loss) recognized in net income on derivatives
Three months ended September 30, 2017
Equity and index contracts	$	(10	)	$	—		$	11		$	8		$	9
Embedded derivative financial instruments	—			(4		)	(3		)	—			(7		)
Foreign currency contracts	(5		)	—			—			1			(4		)
Credit default contracts	(2		)	—			—			—			(2		)
Total	$	(17	)	$	(4	)	$	8		$	9		$	(4	)

Nine months ended September 30, 2017
Equity and index contracts	$	(17	)	$	—		$	33		$	20		$	36
Embedded derivative financial instruments	—			4			(7		)	—			(3		)
Foreign currency contracts	(20		)	—			—			6			(14		)
Credit default contracts	(3		)	—			—			—			(3		)
Total	$	(40	)	$	4		$	26		$	26		$	16

Three months ended September 30, 2016
Equity and index contracts	$	(10	)	$	—		$	14		$	7		$	11
Embedded derivative financial instruments	—			3			(6		)	—			(3		)
Foreign currency contracts	(5		)	—			—			(5		)	(10		)
Total	$	(15	)	$	3		$	8		$	2		$	(2	)

Nine months ended September 30, 2016
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(15		)	—			9			11			5
Embedded derivative financial instruments	—			1			(9		)	—			(8		)
Foreign currency contracts	(4		)	—			—			(26		)	(30		)
Credit default contracts	(5		)	—			—			—			(5		)
Total	$	(25	)	$	1		$	—		$	(15	)	$	(39	)

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 September 30, 2017, counterparties pledged $3 million in cash to the Company, and the Company pledged $18 million in cash and securities to counterparties which includes $7 million of collateral posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability position and $11 million of 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 by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	September 30, 2017							December 31, 2016
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-	1	$	11	$	—	$	—	2	$	80	$	2	$	2
A+	3	249		4		4		5	698		20		9
A-	—	—		—		—		1	110		1		1
Total	4	$	260	$	4	$	4	8	$	888	$	23	$	12

_______________


⁽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 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)	September 30, 2017			December 31, 2016
Gross liability fair value of contracts containing credit-risk-contingent features	$	20		$	9
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(8		)	(7		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7		)	—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	5		$	2

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
September 30, 2017
Single name
Corporate debt	$	—	$	—	$	20	$	5	$	25	$	—
Index
Corporate debt	1		19		46		14		80		1
Total	$	1	$	19	$	66	$	19	$	105	$	1

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	)

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.

Reserve for Property-Liability Insurance Claims and Claims Expense

9 Months Ended

Sep. 30, 2017

Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract]

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 law and regulation, 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 and reserves and reinsurance recoverables for the Discontinued Lines and Coverages, 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 Condensed Consolidated Statements of Operations in the period such changes are determined.

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 Condensed Consolidated Statements of Financial Position based on available facts, technology, laws and regulations.

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



($ in millions)	Nine months ended September 30,
	2017			2016
Balance as of January 1	$	25,250		$	23,869
Less reinsurance recoverables	6,184			5,892
Net balance as of January 1	19,066			17,977
SquareTrade acquisition as of January 3, 2017	17			—
Incurred claims and claims expense related to:
Current year	16,971			17,018
Prior years	(321		)	120
Total incurred	16,650			17,138
Claims and claims expense paid related to:
Current year	10,052			10,210
Prior years	5,784			5,804
Total paid	15,836			16,014
Net balance as of September 30	19,897			19,101
Plus reinsurance recoverables	7,257			6,349
Balance as of September 30	$	27,154		$	25,450

Incurred claims and claims expense represents the sum of paid losses and reserve changes in the period. This expense includes losses from catastrophes of $2.64 billion and $2.27 billion in the nine months ended September 30, 2017 and 2016, respectively, net of reinsurance and other recoveries. 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.

During the nine months ended September 30, 2017, incurred claims and claims expense included $321 million of prior year reserve reestimates, increasing net income. Prior year reserve reestimates are composed of net decreases in auto reserves of $336 million primarily due to injury coverages claim severity development that was better than expected, net decreases in homeowners reserves of $86 million due to favorable non-catastrophe reserve reestimates, net increases in Discontinued Lines and Coverages of $93 million, and net increases in other reserves of $8 million. Incurred claims and claims expense includes favorable catastrophe loss reestimates of $10 million, net of reinsurance and other recoveries.

Reinsurance

9 Months Ended

Sep. 30, 2017

Reinsurance Disclosures [Abstract]

Reinsurance

Property-liability insurance premiums earned and life and annuity premiums and contract charges have been reduced by reinsurance ceded amounts shown in the following table.



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property-liability insurance premiums earned	$	245	$	244	$	745	$	741
Life and annuity premiums and contract charges	75		78		225		230

Property-liability insurance claims and claims expense, life and annuity contract benefits and interest credited to contractholder funds have been reduced by the reinsurance ceded amounts shown in the following table.



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property-liability insurance claims and claims expense ⁽¹⁾	$	1,268	$	493	$	1,523	$	895
Life and annuity contract benefits	47		25		164		172
Interest credited to contractholder funds	6		7		17		18

_______________


⁽¹⁾	Includes expected reinsurance recoveries on catastrophe losses related to homeowners flood claims covered by the National Flood Insurance Program.

Company Restructuring

9 Months Ended

Sep. 30, 2017

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 Condensed Consolidated Statements of Operations as restructuring and related charges, and totaled $14 million and $5 million during the three months ended September 30, 2017 and 2016, respectively, and $77 million and $21 million during the nine months ended September 30, 2017 and 2016, respectively. Restructuring expenses in 2017 primarily related to Allstate brand claims process changes and office closures due to increased efficiencies and improvements in digital technology, a voluntary termination program extended to certain employees, outsourcing of certain functions, and realigning or consolidating departments within the Allstate, Esurance and Encompass operations.

The following table presents changes in the restructuring liability during the nine months ended September 30, 2017.



($ in millions)	Employee costs			Exit costs			Total liability
Balance as of December 31, 2016	$	—		$	2		$	2
Expense incurred	46			18			64
Adjustments to liability	(4		)	—			(4		)
Payments applied against liability	(24		)	(7		)	(31		)
Balance as of September 30, 2017	$	18		$	13		$	31

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 September 30, 2017, the cumulative amount incurred to date for active programs totaled $101 million for employee costs and $80 million for exit costs.

Guarantees and Contingent Liabilities	9 Months Ended
Guarantees and Contingent Liabilities	Sep. 30, 2017
Guarantees and Contingent Liabilities
Guarantees and Contingent Liabilities	Guarantees and Contingent Liabilities 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. Guarantees The Company provides residual value guarantees on Company leased automobiles. If all outstanding leases were terminated effective September 30, 2017, the Company’s maximum obligation pursuant to these guarantees, assuming the automobiles have no residual value, would be $32 million as of September 30, 2017. 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 September 30, 2017. 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 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 $300 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 and in the Company’s judgment, a loss, in excess of amounts accrued, if any, is not probable. 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 was filed on May 16, 2017. Plaintiff’s reply brief was filed on July 6, 2017. Oral argument occurred on October 26, 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. There are 105 members of the Fair Labor Standards Act class and 137 members of the New York Labor Law class. The parties are engaged in discovery. 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. 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. 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. On February 7, 2017, Orthopedic Specialists filed a motion for rehearing, which the Florida Supreme Court denied on March 27, 2017. Thus, the Florida Supreme Court’s decision is final. In light of this ruling, the fee schedule issue is expected to be resolved favorably to Allstate in other pending cases. There were three other cases with petitions for leave to appeal to the Florida Supreme Court pending. In those cases, three District Courts of Appeal had previously ruled in favor of Allstate. The Florida Supreme Court issued “show cause” orders in each of those appeals directing the providers to file a response explaining why the Orthopedic Specialists decision is not controlling and why the Florida Supreme Court should not decline to exercise jurisdiction. In one appeal, the provider acknowledged that Orthopedic Specialists governs and the court declined jurisdiction in that appeal. In the other two appeals, the providers asserted that their petitions to appeal should be granted because Orthopedic Specialists was wrongly decided, repeating the arguments previously asserted. Allstate’s responses were filed on May 8, 2017. On August 4, 2017, the Florida Supreme Court issued orders in both of those cases stating that the court was declining to exercise jurisdiction in those appeals. Accordingly, all proceedings on the fee schedule issue in the Florida Supreme Court have been concluded in Allstate’s favor. 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 has established Florida law on the sufficiency of Allstate’s fee schedule policy language that is binding on all Florida courts. Allstate intends to seek final resolution in its favor of all fee schedule claims currently in litigation as well as those not in litigation. Allstate may seek restitution from some plaintiffs for attorneys’ fees and costs. Providers continue to pursue individual suits under various theories challenging the amounts paid when Allstate pays personal injury protection benefits under the fee schedule limitations. Allstate is vigorously asserting both procedural and substantive defenses to these suits. Other proceedings The Company is defending a consolidated proceeding relating to the reorganization of its agent sales force in 2000, when the Company discontinued employee agent programs, terminated the contracts of its employee agents, and offered those agents the opportunity to become Allstate Exclusive Agent independent contractors or to take severance benefits in exchange for a release of claims. The consolidated proceeding, captioned Gene Romero, et al. v. Allstate Insurance Company, et al., is pending in the United States District Court for the Eastern District of Pennsylvania. This matter has a long and complex history, only relevant portions of which are summarized here. The case began in 2001 as two separate putative class actions filed by approximately 32 former employee agents. In one case, plaintiffs challenged the reorganization alleging claims under the Age Discrimination in Employment Act (“ADEA”), interference with benefits under ERISA, breach of contract, and breach of fiduciary duty. Plaintiffs also challenged the release of claims on various grounds including alleging that the release was retaliatory under the ADEA and ERISA. In the other case, plaintiffs challenged certain amendments to the Agents Pension Plan and sought to have service as Exclusive Agent independent contractors count toward eligibility for benefits. Plaintiffs sought various relief, including back pay, compensatory and punitive damages, liquidated damages, lost investment capital, loss of benefits, repeal of the challenged plan amendments and attorneys’ fees. In February, 2014, the court addressed the validity and enforceability of the release and determined that the question of whether the releases were voluntarily signed raised disputed issues of fact to be resolved at trial. The court also held that the release, if valid, would bar all claims. In late 2014, the court denied plaintiffs’ motion to certify a class for purposes of determining whether the releases were signed voluntarily and ordered that all statutes of limitations would resume running, after which approximately 460 additional individual plaintiffs filed separate similar lawsuits or sought to intervene. A jury trial was held in June, 2015, to determine whether the releases of ten plaintiffs were knowingly and voluntarily signed. The jury found that two plaintiffs signed their releases voluntarily and eight plaintiffs did not. On May 2, 2016, a consolidated amended complaint was filed on behalf of 498 plaintiffs, most of whom had previously filed separate lawsuits or intervened. On July 6, 2016, the court denied the Company’s motion to dismiss plaintiffs’ state law breach of contract and fiduciary duty claims but granted dismissal of plaintiffs’ retaliation claims under the ADEA and ERISA challenging the release of claims. The court then separated the case into phases to address “common issues” in plaintiffs’ claims, beginning with: (a) “Phase I” addressing claims by 118 plaintiffs alleging that certain plan amendments violated ERISA’s anti-cutback provision by eliminating an accrued benefit and (b) “Phase II” addressing all plaintiffs’ claims for alleged interference with employee benefits under ERISA and disparate impact under the ADEA. A bench trial on Phase I claims was held in December, 2016. The court ruled that (i) the Company’s 1991 amendments to the Plan did not violate ERISA by improperly cutting back on plaintiffs’ benefits, and (ii) the Company’s interpretation of the Plan’s definition of “retire” violated ERISA’s anti-cutback rule. The court required the parties to provide further information, in the form of an accounting, to determine whether any plaintiffs suffered a loss based on any such cutback. Plaintiffs have asserted that only two of the 118 plaintiffs suffered a loss as a result of the court’s order. The Company contends that no plaintiff suffered a compensable loss and that judgment should be entered in favor of the Company. We await a final ruling by the court. In Phase II, the court granted the Company’s motion for summary judgment on both the ADEA disparate impact and ERISA interference with benefits claims. This ruling resolved these claims in the trial court as to all plaintiffs. In June, 2017, the court entered an order establishing Phases III and IV of the litigation. In Phase III, the remaining claims of the eight individual plaintiffs who reside in the Eastern District of Pennsylvania were to be litigated, possibly culminating in two separate jury trials in early 2018. The Company filed several motions for summary judgment on the Phase III claims. The court granted the Company’s motion as to the Phase III plaintiffs’ ADEA disparate treatment claims and as to a retaliation claim that had been asserted by one of the Phase III plaintiffs. The court denied the Company’s motion on the Phase III plaintiffs’ breach of contract and breach of fiduciary duty claims. The Company and 82 individual plaintiffs, including all eight of the Phase III plaintiffs whose remaining claims were set for trial in early 2018, recently reached agreements in principle to settle all claims of those plaintiffs on a confidential basis, subject to negotiating and executing appropriate written settlement agreements. Three other plaintiffs voluntarily dismissed their claims leaving 413 plaintiffs in this litigation. The parties are currently engaging in further written discovery relating to the claims of the remaining plaintiffs (Phase IV of the litigation) pending the court’s determination of the proper venue for depositions, dispositive motions, and trials of those claims. 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. The below shareholder derivative action is disclosed pursuant to SEC disclosure requirements for these types of matters, and the putative class action has been disclosed because both matters involve similar allegations. On August 3, 2017, a plaintiff alleging to be a stockholder in the Company filed a shareholder derivative complaint in the Circuit Court for Cook County, Chancery Division. The action is styled Biefeldt v. Wilson, et al., Case No. 2017 CH 10676 (Cook County, Ill.). In the complaint, plaintiff purports to assert claims on behalf of the Company for alleged breaches of fiduciary duty based on allegations that are similar to those asserted in the securities action described below. The complaint names as defendants the Company’s chairman and chief executive officer, its president, its chief financial officer and the members of the board of directors during the period of the alleged misstatements or omissions regarding auto claims frequency. By agreement, the time to respond to the complaint has been extended through and including November 13, 2017. The complaint seeks, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. In November 2016, a putative class action was filed in the United States District Court for the Northern District of Illinois against the Company and several of its officers asserting claims under the federal securities laws. The action is titled In re The Allstate Corp. Securities Litigation, No. 1:16-cv-10510 (N.D. Ill.). In March 2017, lead plaintiffs filed a consolidated amended complaint. In the complaint, plaintiffs allege that the Company and certain senior officers made allegedly material misstatements or omissions concerning claim frequency statistics and the reasons for a claim frequency increase for Allstate brand auto insurance during the period from October 29, 2014 to August 3, 2015. The complaint further alleges that a senior officer engaged in stock option exercises and sales during that time allegedly while in possession of information about claim frequency that had not been disclosed. The consolidated amended complaint names as defendants the Company, its chairman and chief executive officer and its president. Plaintiffs assert claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. On June 1, 2017, all defendants filed motions to dismiss the consolidated amended complaint for failure to state a claim. Briefing on the motion was completed in September 2017. The Company and the other defendants dispute plaintiffs’ allegations that there was any misstatement or omission or other misconduct. The complaint seeks an unspecified amount of damages, costs and attorney’s fees and such other relief as the court deems appropriate. Asbestos and environmental Allstate’s reserves for asbestos claims were $908 million and $912 million, net of reinsurance recoverables of $428 million and $444 million, as of September 30, 2017 and December 31, 2016, respectively. Reserves for environmental claims were $175 million and $179 million, net of reinsurance recoverables of $35 million and $40 million, as of September 30, 2017 and December 31, 2016, respectively. 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.

Benefit Plans

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Benefit Plans

The components of net periodic cost for the Company’s pension and postretirement benefit plans are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Pension benefits
Service cost	$	28		$	28		$	85		$	84
Interest cost	66			71			198			214
Expected return on plan assets	(102		)	(99		)	(306		)	(298		)
Amortization of:
Prior service credit	(14		)	(14		)	(42		)	(42		)
Net actuarial loss	48			44			142			131
Settlement loss	94			7			110			23
Net periodic pension cost	$	120		$	37		$	187		$	112

Postretirement benefits
Service cost	$	2		$	2		$	6		$	7
Interest cost	4			4			11			13
Amortization of:
Prior service credit	(6		)	(5		)	(18		)	(16		)
Net actuarial gain	(6		)	(2		)	(18		)	(18		)
Net periodic postretirement credit	$	(6	)	$	(1	)	$	(19	)	$	(14	)

During the third quarter of 2017, the Company concluded that its qualified employee pension plan 2017 lump sum payments are expected to exceed a threshold of service and interest cost due to higher-than-expected retirement levels, rising interest rates that reduce benefit lump sum payments in the future and reductions in force. As a result, a pension settlement loss of $86 million, pre-tax, was recorded as part of operating costs and expenses in the Corporate and Other segment. The Company will continue to monitor lump sum payments through the end of the year and will recognize an additional settlement expense based on lump sum payments made during the fourth quarter of 2017.

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Non-cash investing activities include $31 million and $290 million related to mergers and exchanges completed with equity securities, and modifications of certain mortgage loans and other investments for the nine months ended September 30, 2017 and 2016, respectively. Non-cash financing activities include $42 million and $40 million related to the issuance of Allstate common shares for vested equity awards for the nine months ended September 30, 2017 and 2016, respectively. Non-cash financing activities also included $34 million related to debt acquired in conjunction with the purchase of an investment for the nine months ended September 30, 2016.

Liabilities for collateral received in conjunction with the Company’s securities lending program and over-the-counter and cleared derivatives 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 Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which are as follows:



($ in millions)	Nine months ended September 30,
	2017			2016
Net change in proceeds managed
Net change in fixed income securities	$	129		$	(436	)
Net change in short-term investments	(157		)	181
Operating cash flow used	(28		)	(255		)
Net change in cash	1			—
Net change in proceeds managed	$	(27	)	$	(255	)

Net change in liabilities
Liabilities for collateral, beginning of period	$	(1,129	)	$	(840	)
Liabilities for collateral, end of period	(1,156		)	(1,095		)
Operating cash flow provided	$	27		$	255

Other Comprehensive Income

9 Months Ended

Sep. 30, 2017

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

Other Comprehensive Income

The components of other comprehensive income on a pre-tax and after-tax basis are as follows:



($ in millions)	Three months ended September 30,
	2017									2016
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	300		$	(105	)	$	195		$	350		$	(123	)	$	227
Less: reclassification adjustment of realized capital gains and losses	107			(37		)	70			53			(19		)	34
Unrealized net capital gains and losses	193			(68		)	125			297			(104		)	193
Unrealized foreign currency translation adjustments	43			(15		)	28			(11		)	4			(7		)
Unrecognized pension and other postretirement benefit cost arising during the period	(5		)	3			(2		)	1			—			1
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(116		)	41			(75		)	(30		)	10			(20		)
Unrecognized pension and other postretirement benefit cost	111			(38		)	73			31			(10		)	21
Other comprehensive income	$	347		$	(121	)	$	226		$	317		$	(110	)	$	207

	Nine months ended September 30,
	2017									2016
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	1,165		$	(408	)	$	757		$	1,685		$	(589	)	$	1,096
Less: reclassification adjustment of realized capital gains and losses	245			(86		)	159			(156		)	55			(101		)
Unrealized net capital gains and losses	920			(322		)	598			1,841			(644		)	1,197

Unrealized foreign currency translation adjustments	55			(19		)	36			18			(6		)	12

Unrecognized pension and other postretirement benefit cost arising during the period	(8		)	5			(3		)	(6		)	3			(3		)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(174		)	61			(113		)	(78		)	27			(51		)
Unrecognized pension and other postretirement benefit cost	166			(56		)	110			72			(24		)	48
Other comprehensive income	$	1,141		$	(397	)	$	744		$	1,931		$	(674	)	$	1,257

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Effective October 2017, the Company changed from four to seven reportable segments: Allstate Protection, Discontinued Lines and Coverages, Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities and Corporate and Other. These segments align with the Company’s key product and service offerings, including the acquisition of SquareTrade and the strategic focus and expansion of Arity and other emerging businesses. These new segments reflect the manner in which the Company’s chief operating decision maker will review performance and make decisions about the allocation of resources. Goodwill Upon adoption of the new segments in the fourth quarter 2017, the Company is required to evaluate goodwill, including the allocation of goodwill to any new reporting units on a relative fair value basis. The Company allocated the $1.09 billion of goodwill recorded in conjunction with the acquisition of SquareTrade to the Service Businesses reporting unit along with an immaterial amount of goodwill from the Allstate Protection segment related to other businesses included in this segment. The Allstate Financial segment had goodwill that will be reallocated between the new Allstate Life, Allstate Benefits, and Allstate Annuities segments. While substantially all of Allstate Financial goodwill related to the acquisition of Allstate Benefits, the Company is required to allocate a portion of the goodwill to the Allstate Life and Allstate Annuities segments. The estimated allocation is $170 million to Allstate Life, $100 million to Allstate Benefits and $125 million to Allstate Annuities. The reallocation was computed using fair values for the goodwill reporting units determined using discounted cash flow (“DCF”) calculations and market to book multiples derived from a peer company analysis. The DCF analysis utilizes long term assumptions for revenues, investment income, benefits, claims, other operating expenses and income taxes to produce projections of both income and cash flows available for dividends that are present valued using weighted average cost of capital. Market to book multiples represent the mean market to book multiple for selected peer companies with operations similar to the Company’s goodwill reporting units to which the multiple is applied. The outputs from these methods are weighted based on the nature of the business and the relative amount of market observable assumptions supporting the estimates. The computed values were then weighted to reflect the fair value estimate based on the specific attributes of each goodwill reporting unit. A goodwill impairment assessment is required to be completed in conjunction with the segment changes. The Company estimates it will recognize an impairment of approximately $125 million in the fourth quarter of 2017 related to the goodwill allocated to the Allstate Annuities reporting unit reflecting a market-based valuation. Reserve for life-contingent contract benefits Prior to fourth quarter 2017, the Company evaluated the adequacy of reserves and recoverability of DAC for traditional life insurance products and immediate annuities with life contingencies on an aggregate basis. The Company also evaluated these policies on an aggregate basis for circumstances where projected profits would be recognized in early years followed by projected losses in later years. As of September 30, 2017, both traditional life insurance and immediate annuities with life contingencies had projected profit as measured using actual and expected investment holdings and returns; however, the aggregate sufficiency substantially related to traditional life insurance with a marginal sufficiency related to immediate annuities with life contingencies. In conjunction with the segment change in fourth quarter 2017, the Company will review traditional life insurance products and immediate annuities with life contingencies separately. The Company records an adjustment to the reserve for life-contingent contract benefits that represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product investment portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. The offset to this liability is recorded as a reduction of the unrealized net capital gains included in accumulated other comprehensive income. As of September 30, 2017, no adjustment was recorded. In conjunction with the segment change in fourth quarter 2017, the Company will evaluate the need for a reserve adjustment separately for traditional life insurance and immediate annuities with life contingencies. The estimated impact, using values as of September 30, 2017, is approximately a $550 million increase to the reserve for life-contingent contract benefits, and a $350 million decrease to unrealized net capital gains, after-tax, included in shareholders’ equity.

General (Policies)

9 Months Ended

Sep. 30, 2017

General [Abstract]

Basis of presentation

The accompanying condensed 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 condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The condensed consolidated financial statements and notes as of September 30, 2017 and for the three-month and nine-month periods ended September 30, 2017 and 2016 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated.

New Accounting Pronouncements

Adopted accounting standards

Employee Share-Based Payment Accounting

Effective January 1, 2017, the Company adopted new Financial Accounting Standards Board (“FASB”) guidance that amends the accounting for share-based payments on a prospective basis. Under the new guidance, reporting entities are required to recognize all tax effects related to share-based payments at settlement or expiration through the income statement and the requirement to delay recognition of certain tax benefits until they reduce current taxes payable is eliminated. The new guidance also permits employers to withhold shares issued in connection with an employee’s exercise of options or the settlement of stock awards, up to the employee’s maximum individual statutory tax rate, to meet tax withholding requirements without causing liability classification of the award. In addition, all tax-related cash flows resulting from share-based payments are reported as operating activities on the statement of cash flows whereas cash payments made to taxing authorities on an employee’s behalf for withheld shares are presented as financing activities. The adoption of this guidance had no impact on the Company’s results of operations or financial position on the date of adoption.

Transition to Equity Method Accounting

Effective January 1, 2017, the Company adopted new FASB 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 applied prospectively to investments that qualify for EMA after application of the cost method of accounting. Accordingly, the adoption of this guidance 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’s principal activities impacted by the standard are those related to the issuance of protection plans for consumer products and automobiles and service contracts that provide roadside assistance. The impacts include an increase in deferred revenue with a corresponding increase in deferred costs for protection plans that are sold directly to retailers for which Allstate is deemed to be the principal in the transaction. The anticipated impacts of this adjustment offset and will not impact net income, but result in an increase in unearned premiums and deferred policy acquisition costs of approximately $145 million to $175 million, pre-tax. The Company also anticipates impacts related to recognizing revenue for SquareTrade based on expected losses, accounting for variable consideration and the deferral of certain costs associated with acquiring service contracts that provide roadside assistance, the net impact of which is not expected to materially reduce shareholders’ equity at the date of adoption. Based on the Company’s assessment, the total impact of adoption will not 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 which results in no impact to the Company’s results of operations at the date of adoption. The new guidance related to equity investments without readily determinable fair values is applied prospectively as of the date of adoption. The most significant anticipated impacts, using values as of September 30, 2017, relate to the change in accounting for equity securities, where $966 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 of these investments would increase by approximately $200 million, pre-tax, with the offsetting after-tax adjustment recognized in retained income. The after-tax change in accounting for equity securities will not affect the Company’s shareholders’ equity and the unrealized net capital gains reclassified to retained income will never be recognized in net income. The after-tax change in accounting for cost method limited partnerships, if adopted at the end of this reporting period, would increase the Company’s shareholders’ equity, while also decreasing net income return on shareholders’ equity. The amount by which the fair value of cost method limited partnerships exceeds their carrying value will never be recognized in net income.

Accounting for Leases

In February 2016, the FASB issued guidance revising 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. 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.

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, including reinsurance recoverables. 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 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 a valuation 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 which 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, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect a reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether 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, including goodwill, over their respective fair values, a measure that is not currently determinable.

Presentation of Net Periodic Pension and Postretirement Benefits Costs

In March 2017, the FASB issued guidance to improve the presentation of net periodic pension and postretirement benefits costs that requires the service cost component to be reported in operating expenses together with other employee compensation costs and all other components of net periodic pension and postretirement benefits costs reported in non-operating expenses. If the reporting entity does not separately report operating and non-operating expenses on the statement of operations it is required to identify, on the statement of operations or in disclosures, the line items in which the components of net periodic pension and postretirement benefits costs are presented. The new guidance permits only the service cost component to be eligible for capitalization where applicable. The guidance is effective for annual periods beginning after December 15, 2017 and for interim periods within those annual periods. The guidance is to be applied on a prospective basis for capitalization of service costs where applicable and on a retrospective basis for the presentation of the service cost and other components of net periodic pension benefit costs in the statements of operations or in disclosures. The impact of adoption is not expected to be material to the Company’s results of operations or financial position.

Accounting for Hedging Activities

In August 2017, the FASB issued amendments intended to better align hedge accounting with an organization’s risk management activities. The amendments expand hedge accounting for nonfinancial and financial risk components and revise the measurement methodologies to better align with an organization’s risk management activities. Separate presentation of hedge ineffectiveness is eliminated to provide greater transparency of the full impact of hedging by requiring presentation of the results of the hedged item and hedging instrument in a single financial statement line item. In addition, the amendments reduce complexity by simplifying the manner in which assessments of hedge effectiveness may be performed. The guidance is effective for annual periods beginning after December 15, 2018 and for interim periods within those annual periods. The presentation and disclosure guidance is effective on a prospective basis. The impact of adoption is not expected to be material to the Company’s results of operations or financial position.

Fair Value Measurement

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.

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:

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.


•	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.

Level 3 measurements


•	Fixed income securities:


•	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.

•

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

Earnings per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per common share

The computation of basic and diluted earnings per common share is presented in the following table.



($ in millions, except per share data)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Numerator:
Net income	$	666	$	520	$	1,940	$	1,037
Less: Preferred stock dividends	29		29		87		87
Net income applicable to common shareholders ⁽¹⁾	$	637	$	491	$	1,853	$	950

Denominator:
Weighted average common shares outstanding	361.3		371.5		363.5		374.4
Effect of dilutive potential common shares:
Stock options	4.4		3.2		4.3		3.3
Restricted stock units (non-participating) and performance stock awards	1.4		1.2		1.3		1.2
Weighted average common and dilutive potential common shares outstanding	367.1		375.9		369.1		378.9

Earnings per common share - Basic	$	1.76	$	1.32	$	5.10	$	2.54
Earnings per common share - Diluted	$	1.74	$	1.31	$	5.02	$	2.51

_____________________________


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

Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of business segments revenue disclosures

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



($ in millions)	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017		2016
Property-Liability
Property-liability insurance premiums
Auto	$	5,502	$	5,353		$	16,327	$	15,879
Homeowners	1,832		1,813			5,462		5,438
Other personal lines	439		426			1,306		1,271
Commercial lines	124		127			367		383
Other business lines	146		150			429		435
SquareTrade	78		—			207		—
Allstate Protection	8,121		7,869			24,098		23,406
Discontinued Lines and Coverages	—		—			—		—
Total property-liability insurance premiums	8,121		7,869			24,098		23,406
Net investment income	372		310			1,074		928
Realized capital gains and losses	82		53			302		(20		)
Total Property-Liability	8,575		8,232			25,474		24,314
Allstate Financial
Life and annuity premiums and contract charges
Premiums
Traditional life insurance	153		145			450		422
Accident and health insurance	232		216			697		646
Total premiums	385		361			1,147		1,068
Contract charges
Interest-sensitive life insurance	204		206			620		623
Fixed annuities	4		4			10		10
Total contract charges	208		210			630		633
Total life and annuity premiums and contract charges	593		571			1,777		1,701
Net investment income	461		427			1,383		1,281
Realized capital gains and losses	21		(21		)	16		(70		)
Total Allstate Financial	1,075		977			3,176		2,912
Corporate and Other
Net investment income	10		11			31		32
Realized capital gains and losses	—		1			—		(2		)
Total Corporate and Other	10		12			31		30
Consolidated revenues	$	9,660	$	9,221		$	28,681	$	27,256

Schedule of business segments net income disclosures

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



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Property-Liability
Underwriting income
Allstate Protection	$	517		$	455		$	1,258		$	518
Discontinued Lines and Coverages	(88		)	(100		)	(95		)	(104		)
Total underwriting income	429			355			1,163			414
Net investment income	372			310			1,074			928
Income tax expense on operations	(252		)	(218		)	(703		)	(429		)
Realized capital gains and losses, after-tax	54			36			199			(10		)
Gain on disposition of operations, after-tax	1			—			7			—
Property-Liability net income applicable to common shareholders	604			483			1,740			903
Allstate Financial
Life and annuity premiums and contract charges	593			571			1,777			1,701
Net investment income	461			427			1,383			1,281
Contract benefits and interest credited to contractholder funds	(629		)	(667		)	(1,935		)	(1,939		)
Operating costs and expenses and amortization of deferred policy acquisition costs	(188		)	(194		)	(597		)	(577		)
Restructuring and related charges	(1		)	—			(2		)	(1		)
Income tax expense on operations	(79		)	(43		)	(206		)	(147		)
Operating income	157			94			420			318
Realized capital gains and losses, after-tax	13			(14		)	9			(46		)
Valuation changes on embedded derivatives that are not hedged, after-tax	(1		)	—			(2		)	(8		)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(2		)	(1		)	(8		)	(3		)
Gain on disposition of operations, after-tax	1			1			3			3
Allstate Financial net income applicable to common shareholders	168			80			422			264
Corporate and Other
Net investment income	10			11			31			32
Operating costs and expenses	(175		)	(80		)	(360		)	(238		)
Income tax benefit on operations	60			26			121			77
Preferred stock dividends	(29		)	(29		)	(87		)	(87		)
Operating loss	(134		)	(72		)	(295		)	(216		)
Realized capital gains and losses, after-tax	—			—			—			(1		)
Business combination expenses, after-tax	(1		)	—			(14		)	—
Corporate and Other net loss applicable to common shareholders	(135		)	(72		)	(309		)	(217		)
Consolidated net income applicable to common shareholders	$	637		$	491		$	1,853		$	950

Investments (Tables)

9 Months Ended

Sep. 30, 2017

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
September 30, 2017
U.S. government and agencies	$	3,843	$	65	$	(8	)	$	3,900
Municipal	7,484		332		(22		)	7,794
Corporate	43,259		1,419		(132		)	44,546
Foreign government	1,077		30		(14		)	1,093
Asset-backed securities (“ABS”)	1,263		16		(9		)	1,270
Residential mortgage-backed securities (“RMBS”)	512		101		(2		)	611
Commercial mortgage-backed securities (“CMBS”)	149		8		(4		)	153
Redeemable preferred stock	21		3		—			24
Total fixed income securities	$	57,608	$	1,974	$	(191	)	$	59,391


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

Schedule for fixed income securities based on contractual maturities

The scheduled maturities for fixed income securities are as follows as of September 30, 2017:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	4,392	$	4,415
Due after one year through five years	29,466		30,044
Due after five years through ten years	16,604		17,042
Due after ten years	5,222		5,856
	55,684		57,357
ABS, RMBS and CMBS	1,924		2,034
Total	$	57,608	$	59,391

Schedule of net investment income

Net investment income is as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Fixed income securities	$	519		$	508		$	1,564		$	1,546
Equity securities	37			31			130			103
Mortgage loans	52			56			157			162
Limited partnership interests	223			136			596			383
Short-term investments	9			4			21			11
Other	58			55			174			163
Investment income, before expense	898			790			2,642			2,368
Investment expense	(55		)	(42		)	(154		)	(127		)
Net investment income	$	843		$	748		$	2,488		$	2,241

Schedule of realized capital gains and losses by asset type

Realized capital gains and losses by asset type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Fixed income securities	$	41		$	(1	)	$	78		$	(48	)
Equity securities	57			45			182			(34		)
Mortgage loans	1			—			1			1
Limited partnership interests	21			12			92			25
Derivatives	(17		)	(15		)	(40		)	(22		)
Other	—			(8		)	5			(14		)
Realized capital gains and losses	$	103		$	33		$	318		$	(92	)

Schedule of realized capital gains and losses by transaction type

Realized capital gains and losses by transaction type are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Impairment write-downs	$	(23	)	$	(63	)	$	(94	)	$	(185	)
Change in intent write-downs	(5		)	(10		)	(43		)	(48		)
Net other-than-temporary impairment losses recognized in earnings	(28		)	(73		)	(137		)	(233		)
Sales and other	148			121			495			166
Valuation and settlements of derivative instruments	(17		)	(15		)	(40		)	(25		)
Realized capital gains and losses	$	103		$	33		$	318		$	(92	)

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

Other-than-temporary impairment losses by asset type are as follows:



($ in millions)	Three months ended September 30, 2017									Three months ended September 30, 2016
	Gross			Included in OCI			Net			Gross			Included in OCI		Net
Fixed income securities:
Corporate	$	—		$	—		$	—		$	(13	)	$	—	$	(13	)
ABS	—			(1		)	(1		)	—			—		—
RMBS	—			—			—			(1		)	—		(1		)
CMBS	(1		)	(1		)	(2		)	(3		)	—		(3		)
Total fixed income securities	(1		)	(2		)	(3		)	(17		)	—		(17		)
Equity securities	(8		)	—			(8		)	(27		)	—		(27		)
Mortgage loans	(1		)	—			(1		)	—			—		—
Limited partnership interests	(16		)	—			(16		)	(22		)	—		(22		)
Other	—			—			—			(7		)	—		(7		)
Other-than-temporary impairment losses	$	(26	)	$	(2	)	$	(28	)	$	(73	)	$	—	$	(73	)

	Nine months ended September 30, 2017									Nine months ended September 30, 2016
	Gross			Included in OCI			Net			Gross			Included in OCI		Net
Fixed income securities:
Municipal	$	(1	)	$	(2	)	$	(3	)	$	—		$	—	$	—
Corporate	(9		)	3			(6		)	(30		)	7		(23		)
ABS	(1		)	(1		)	(2		)	(6		)	—		(6		)
RMBS	(1		)	(3		)	(4		)	(1		)	—		(1		)
CMBS	(9		)	1			(8		)	(7		)	1		(6		)
Total fixed income securities	(21		)	(2		)	(23		)	(44		)	8		(36		)
Equity securities	(77		)	—			(77		)	(155		)	—		(155		)
Mortgage loans	(1		)	—			(1		)	—			—		—
Limited partnership interests	(32		)	—			(32		)	(33		)	—		(33		)
Other	(4		)	—			(4		)	(9		)	—		(9		)
Other-than-temporary impairment losses	$	(135	)	$	(2	)	$	(137	)	$	(241	)	$	8	$	(233	)

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



($ in millions)	September 30, 2017			December 31, 2016
Municipal	$	(5	)	$	(8	)
Corporate	(3		)	(7		)
ABS	(15		)	(21		)
RMBS	(80		)	(90		)
CMBS	(5		)	(7		)
Total	$	(108	)	$	(133	)

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 the end of the period are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Beginning balance	$	(281	)	$	(331	)	$	(318	)	$	(392	)
Additional credit loss for securities previously other-than-temporarily impaired	(3		)	(3		)	(15		)	(14		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			(14		)	(8		)	(22		)
Reduction in credit loss for securities disposed or collected	20			12			76			92
Change in credit loss due to accretion of increase in cash flows	—			—			1			—
Ending balance	$	(264	)	$	(336	)	$	(264	)	$	(336	)

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)
September 30, 2017	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	59,391	$	1,974	$	(191	)	$	1,783
Equity securities	6,434		1,006		(40		)	966
Short-term investments	2,198		—		—			—
Derivative instruments ⁽¹⁾	1		2		(4		)	(2		)
Equity method (“EMA”) limited partnerships ⁽²⁾								—
Unrealized net capital gains and losses, pre-tax								2,747
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(203		)
Amounts recognized								(203		)
Deferred income taxes								(893		)
Unrealized net capital gains and losses, after-tax								$	1,651

_______________


⁽¹⁾	Included in the fair value of derivative instruments is $1 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, 2016	Fair value		Gains		Losses			Unrealized net 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								(4		)
Unrealized net capital gains and losses, pre-tax								1,770
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(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.

Schedule of change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the nine months ended September 30, 2017 is as follows:



($ in millions)
Fixed income securities	$	520
Equity securities	457
Derivative instruments	(4		)
EMA limited partnerships	4
Total	977
Amounts recognized for:
Insurance reserves	—
DAC and DSI	(57		)
Amounts recognized	(57		)
Deferred income taxes	(322		)
Increase in unrealized net capital gains and losses, after-tax	$	598

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						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
September 30, 2017
Fixed income securities
U.S. government and agencies	64	$	2,625	$	(7	)	7	$	93	$	(1	)	$	(8	)
Municipal	938	1,736		(14		)	83	172		(8		)	(22		)
Corporate	560	7,468		(74		)	94	1,370		(58		)	(132		)
Foreign government	68	697		(14		)	—	—		—			(14		)
ABS	44	379		(1		)	10	34		(8		)	(9		)
RMBS	84	42		—			176	57		(2		)	(2		)
CMBS	5	20		(2		)	4	15		(2		)	(4		)
Total fixed income securities	1,763	12,967		(112		)	374	1,741		(79		)	(191		)
Equity securities	129	544		(30		)	17	48		(10		)	(40		)
Total fixed income and equity securities	1,892	$	13,511	$	(142	)	391	$	1,789	$	(89	)	$	(231	)
Investment grade fixed income securities	1,689	$	12,345	$	(96	)	323	$	1,530	$	(53	)	$	(149	)
Below investment grade fixed income securities	74	622		(16		)	51	211		(26		)	(42		)
Total fixed income securities	1,763	$	12,967	$	(112	)	374	$	1,741	$	(79	)	$	(191	)

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	)

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.



($ in millions)	September 30, 2017						December 31, 2016
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	$	4	$	—	$	4	$	60	$	—	$	60
1.0 - 1.25	349		—		349		324		—		324
1.26 - 1.50	1,111		—		1,111		1,293		—		1,293
Above 1.50	2,804		39		2,843		2,765		39		2,804
Total non-impaired mortgage loans	$	4,268	$	39	$	4,307	$	4,442	$	39	$	4,481

Net carrying value of impaired mortgage loans

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



($ in millions)	September 30, 2017		December 31, 2016
Impaired mortgage loans with a valuation allowance	$	15	$	5
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	15	$	5
Valuation allowance on impaired mortgage loans	$	4	$	3

Valuation allowance on impaired mortgage loans

The rollforward of the valuation allowance on impaired mortgage loans is as follows:



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Beginning balance	$	3	$	3	$	3	$	3
Net increase in valuation allowance	1		—		1		—
Charge offs	—		—		—		—
Ending balance	$	4	$	3	$	4	$	3

Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017.



($ 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 September 30, 2017
Assets
Fixed income securities:
U.S. government and agencies	$	3,190		$	710		$	—					$	3,900
Municipal	—			7,687			107						7,794
Corporate - public	—			32,269			104						32,373
Corporate - privately placed	—			11,923			250						12,173
Foreign government	—			1,093			—						1,093
ABS - CDO	—			545			19						564
ABS - consumer and other	—			640			66						706
RMBS	—			611			—						611
CMBS	—			127			26						153
Redeemable preferred stock	—			24			—						24
Total fixed income securities	3,190			55,629			572						59,391
Equity securities	5,938			328			168						6,434
Short-term investments	380			1,818			—						2,198
Other investments: Free-standing derivatives	—			109			1			$	(9	)	101
Separate account assets	3,422			—			—						3,422
Other assets	1			—			—						1
Total recurring basis assets	12,931			57,884			741			(9		)	71,547
Non-recurring basis⁽¹⁾	—			—			24						24
Total assets at fair value	$	12,931		$	57,884		$	765		$	(9	)	$	71,571
% of total assets at fair value	18.0		%	80.9		%	1.1		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(292	)				$	(292	)
Other liabilities: Free-standing derivatives	(1		)	(69		)	—			$	21		(49		)
Total liabilities at fair value	$	(1	)	$	(69	)	$	(292	)	$	21		$	(341	)
% of total liabilities at fair value	0.3		%	20.2		%	85.6		%	(6.1		)%	100		%

_______________


⁽¹⁾	Includes $14 million of limited partnership interests and $10 million of mortgage loans 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, 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		%
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		%

_______________


⁽¹⁾	Includes $24 million of limited partnership interests 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
September 30, 2017
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(253	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74%
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%

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 three months ended September 30, 2017.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2017			Net income ⁽¹⁾			OCI		Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	114		$	—		$	—	$	—		$	(4	)
Corporate - public	60			—			—		—			(4		)
Corporate - privately placed	266			1			2		—			(34		)
ABS - CDO	91			—			1		—			(68		)
ABS - consumer and other	120			—			—		—			(62		)
CMBS	24			—			—		—			—
Total fixed income securities	675			1			3		—			(172		)
Equity securities	166			2			1		—			(1		)
Free-standing derivatives, net	1			—			—		—			—
Total recurring Level 3 assets	$	842		$	3		$	4	$	—		$	(173	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(285	)	$	(9	)	$	—	$	—		$	—
Total recurring Level 3 liabilities	$	(285	)	$	(9	)	$	—	$	—		$	—

	Purchases			Sales			Issues		Settlements			Balance as of September 30, 2017
Assets
Fixed income securities:
Municipal	$	1		$	(3	)	$	—	$	(1	)	$	107
Corporate - public	51			(1		)	—		(2		)	104
Corporate - privately placed	18			(1		)	—		(2		)	250
ABS - CDO	—			—			—		(5		)	19
ABS - consumer and other	10			—			—		(2		)	66
CMBS	3			—			—		(1		)	26
Total fixed income securities	83			(5		)	—		(13		)	572
Equity securities	—			—			—		—			168
Free-standing derivatives, net	—			—			—		—			1			⁽²⁾
Total recurring Level 3 assets	$	83		$	(5	)	$	—	$	(13	)	$	741
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—	$	2		$	(292	)
Total recurring Level 3 liabilities	$	—		$	—		$	—	$	2		$	(292	)

_____________


⁽¹⁾	The effect to net income totals $(6) million and is reported in the Condensed Consolidated Statements of Operations as follows: $3 million in net investment income, $(5) million in interest credited to contractholder funds and $(4) million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the nine months ended September 30, 2017.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2016			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	125		$	(1	)	$	6		$	—		$	(5	)
Corporate - public	78			—			—			—			(20		)
Corporate - privately placed	263			7			—			30			(34		)
ABS - CDO	27			—			3			30			(190		)
ABS - consumer and other	42			—			—			—			(69		)
RMBS	1			—			—			—			—
CMBS	22			—			—			—			—
Total fixed income securities	558			6			9			60			(318		)
Equity securities	163			15			4			—			(4		)
Short-term investments	15			—			—			—			—
Free-standing derivatives, net	(2		)	3			—			—			—
Other assets	1			(1		)	—			—			—
Total recurring Level 3 assets	$	735		$	23		$	13		$	60		$	(322	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(290	)	$	(6	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(290	)	$	(6	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2017
Assets
Fixed income securities:
Municipal	$	6		$	(23	)	$	—		$	(1	)	$	107
Corporate - public	50			—			—			(4		)	104
Corporate - privately placed	22			(30		)	—			(8		)	250
ABS - CDO	160			—			—			(11		)	19
ABS - consumer and other	99			—			—			(6		)	66
RMBS	—			—			—			(1		)	—
CMBS	6			—			—			(2		)	26
Total fixed income securities	343			(53		)	—			(33		)	572
Equity securities	3			(13		)	—			—			168
Short-term investments	25			(40		)	—			—			—
Free-standing derivatives, net	—			—			—			—			1			⁽²⁾
Other assets	—			—			—			—			—
Total recurring Level 3 assets	$	371		$	(106	)	$	—		$	(33	)	$	741
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	5		$	(292	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	5		$	(292	)

_____________


⁽¹⁾	The effect to net income totals $17 million and is reported in the Condensed Consolidated Statements of Operations as follows: $7 million in realized capital gains and losses, $17 million in net investment income, $(11) million in interest credited to contractholder funds and $4 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended September 30, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of June 30, 2016			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	149		$	1		$	(1	)	$	—		$	—
Corporate - public	74			—			—			—			(6		)
Corporate - privately placed	585			—			2			—			(280		)
ABS - CDO	33			—			3			—			—
ABS - consumer and other	45			—			—			—			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	907			1			4			—			(286		)
Equity securities	118			(1		)	—			—			—
Free-standing derivatives, net	(7		)	4			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,019		$	4		$	4		$	—		$	(286	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(304	)	$	(3	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(304	)	$	(3	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2016
Assets
Fixed income securities:
Municipal	$	22		$	(11	)	$	—		$	—		$	160
Corporate - public	40			(10		)	—			—			98
Corporate - privately placed	38			—			—			(29		)	316
ABS - CDO	40			—			—			(2		)	74
ABS - consumer and other	35			—			—			(1		)	79
RMBS	—			—			—			—			1
CMBS	3			—			—			—			23
Total fixed income securities	178			(21		)	—			(32		)	751
Equity securities	43			—			—			—			160
Free-standing derivatives, net	—			—			—			—			(3		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	221		$	(21	)	$	—		$	(32	)	$	909
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	1		$	(307	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	1		$	(307	)

_____________________


⁽¹⁾	The effect to net income totals $1 million and is reported in the Condensed Consolidated Statements of Operations as follows: $1 million in realized capital gains and losses, $3 million in net investment income, $(6) million in interest credited to contractholder funds and $3 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $4 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 nine months ended September 30, 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			11			(6		)	6			—
Corporate - public	46			—			1			25			(13		)
Corporate - privately placed	502			4			15			16			(363		)
ABS - CDO	61			—			5			10			(3		)
ABS - consumer and other	50			—			(2		)	3			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	846			15			13			60			(383		)
Equity securities	133			(33		)	8			—			—
Free-standing derivatives, net	(7		)	4			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	973		$	(14	)	$	21		$	60		$	(383	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(299	)	$	(11	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(299	)	$	(11	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	—
Municipal	22			(33		)	—			(1		)	160
Corporate - public	47			(6		)	—			(2		)	98
Corporate - privately placed	181			—			—			(39		)	316
ABS - CDO	40			(2		)	—			(37		)	74
ABS - consumer and other	35			(5		)	—			(2		)	79
RMBS	—			—			—			—			1
CMBS	5			—			—			(2		)	23
Total fixed income securities	330			(46		)	—			(84		)	751
Equity securities	52			—			—			—			160
Free-standing derivatives, net	—			—			—			—			(3		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	382		$	(46	)	$	—		$	(84	)	$	909
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(2	)	$	5		$	(307	)
Total recurring Level 3 liabilities	$	—		$	—		$	(2	)	$	5		$	(307	)

_____________________


⁽¹⁾	The effect to net income totals $(25) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(24) million in realized capital gains and losses, $10 million in net investment income, $(12) million in interest credited to contractholder funds and $1 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $4 million of 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 September 30.



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Assets
Fixed income securities:
Municipal	$	—		$	1		$	(3	)	$	2
Corporate	1			—			1			1
Total fixed income securities	1			1			(2		)	3
Equity securities	2			(1		)	16			(33		)
Free-standing derivatives, net	(3		)	4			—			4
Other assets	—			—			(1		)	—
Total recurring Level 3 assets	$	—		$	4		$	13		$	(26	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(9	)	$	(3	)	$	(6	)	$	(11	)
Total recurring Level 3 liabilities	$	(9	)	$	(3	)	$	(6	)	$	(11	)

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)	September 30, 2017				December 31, 2016
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	4,322	$	4,535	$	4,486	$	4,514
Cost method limited partnerships	1,339		1,579		1,282		1,493
Bank loans	1,731		1,734		1,669		1,677
Agent loans	523		520		467		467

Financial liabilities



($ in millions)	September 30, 2017				December 31, 2016
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	10,618	$	11,203	$	11,313	$	12,009
Long-term debt	6,349		7,161		6,347		6,920
Liability for collateral	1,156		1,156		1,129		1,129

- 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 (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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	$	1		$	2	$	(1	)
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	41		n/a	1			1		—
Equity and index contracts
Options	Other investments	173		6,301	96			96		—
Financial futures contracts	Other assets	—		1,866	1			1		—
Foreign currency contracts
Foreign currency forwards	Other investments	322		n/a	(6		)	3		(9		)
Credit default contracts
Credit default swaps – buying protection	Other investments	104		n/a	(2		)	1		(3		)
Credit default swaps – selling protection	Other investments	100		n/a	1			1		—
Other contracts
Other contracts	Other assets	3		n/a	—			—		—
Subtotal		743		8,167	91			103		(12		)
Total asset derivatives		$	792	8,167	$	92		$	105	$	(13	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	11	n/a	$	—		$	—	$	—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	595		5,895	(34		)	2		(36		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	568		n/a	(8		)	3		(11		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	234		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	274		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,764		n/a	(253		)	—		(253		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	416		n/a	(9		)	1		(10		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		3,867		5,895	(343		)	$	6	$	(349	)
Total derivatives		$	4,659	14,062	$	(251	)

__________________


⁽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	$	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		)
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)

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
September 30, 2017
Asset derivatives	$	12		$	(19	)	$	10	$	3		$	—		$	3
Liability derivatives	(28		)	19			2		(7		)	3			(4		)

December 31, 2016
Asset derivatives	$	31		$	(28	)	$	19	$	22		$	(9	)	$	13
Liability derivatives	(33		)	28			—		(5		)	4			(1		)

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



($ in millions)	Three months ended September 30,					Nine months ended September 30,
	2017			2016		2017			2016
Loss recognized in OCI on derivatives during the period	$	(3	)	$	—	$	(5	)	$	(1	)
(Loss) gain recognized in OCI on derivatives during the term of the hedging relationship	(2		)	1		(2		)	1
(Loss) gain reclassified from AOCI into income (net investment income)	(2		)	1		(1		)	1
Gain reclassified from AOCI into income (realized capital gains and losses)	—			—		—			3

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			Total gain (loss) recognized in net income on derivatives
Three months ended September 30, 2017
Equity and index contracts	$	(10	)	$	—		$	11		$	8		$	9
Embedded derivative financial instruments	—			(4		)	(3		)	—			(7		)
Foreign currency contracts	(5		)	—			—			1			(4		)
Credit default contracts	(2		)	—			—			—			(2		)
Total	$	(17	)	$	(4	)	$	8		$	9		$	(4	)

Nine months ended September 30, 2017
Equity and index contracts	$	(17	)	$	—		$	33		$	20		$	36
Embedded derivative financial instruments	—			4			(7		)	—			(3		)
Foreign currency contracts	(20		)	—			—			6			(14		)
Credit default contracts	(3		)	—			—			—			(3		)
Total	$	(40	)	$	4		$	26		$	26		$	16

Three months ended September 30, 2016
Equity and index contracts	$	(10	)	$	—		$	14		$	7		$	11
Embedded derivative financial instruments	—			3			(6		)	—			(3		)
Foreign currency contracts	(5		)	—			—			(5		)	(10		)
Total	$	(15	)	$	3		$	8		$	2		$	(2	)

Nine months ended September 30, 2016
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(15		)	—			9			11			5
Embedded derivative financial instruments	—			1			(9		)	—			(8		)
Foreign currency contracts	(4		)	—			—			(26		)	(30		)
Credit default contracts	(5		)	—			—			—			(5		)
Total	$	(25	)	$	1		$	—		$	(15	)	$	(39	)

Counterparty credit exposure by counterparty credit rating

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



($ in millions)	September 30, 2017							December 31, 2016
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-	1	$	11	$	—	$	—	2	$	80	$	2	$	2
A+	3	249		4		4		5	698		20		9
A-	—	—		—		—		1	110		1		1
Total	4	$	260	$	4	$	4	8	$	888	$	23	$	12

_______________


⁽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)	September 30, 2017			December 31, 2016
Gross liability fair value of contracts containing credit-risk-contingent features	$	20		$	9
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(8		)	(7		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7		)	—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	5		$	2

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
September 30, 2017
Single name
Corporate debt	$	—	$	—	$	20	$	5	$	25	$	—
Index
Corporate debt	1		19		46		14		80		1
Total	$	1	$	19	$	66	$	19	$	105	$	1

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	)

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

9 Months Ended

Sep. 30, 2017

Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract]

Schedule of liability for unpaid claims and claims adjustment expense

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



($ in millions)	Nine months ended September 30,
	2017			2016
Balance as of January 1	$	25,250		$	23,869
Less reinsurance recoverables	6,184			5,892
Net balance as of January 1	19,066			17,977
SquareTrade acquisition as of January 3, 2017	17			—
Incurred claims and claims expense related to:
Current year	16,971			17,018
Prior years	(321		)	120
Total incurred	16,650			17,138
Claims and claims expense paid related to:
Current year	10,052			10,210
Prior years	5,784			5,804
Total paid	15,836			16,014
Net balance as of September 30	19,897			19,101
Plus reinsurance recoverables	7,257			6,349
Balance as of September 30	$	27,154		$	25,450

Reinsurance (Tables)

9 Months Ended

Sep. 30, 2017

Reinsurance Disclosures [Abstract]

Schedule of reductions to premiums and contract charges due to reinsurance premium ceded amounts

Property-liability insurance premiums earned and life and annuity premiums and contract charges have been reduced by reinsurance ceded amounts shown in the following table.



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property-liability insurance premiums earned	$	245	$	244	$	745	$	741
Life and annuity premiums and contract charges	75		78		225		230

Schedule of reductions to costs and expenses due to reinsurance ceded amounts



($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property-liability insurance claims and claims expense ⁽¹⁾	$	1,268	$	493	$	1,523	$	895
Life and annuity contract benefits	47		25		164		172
Interest credited to contractholder funds	6		7		17		18

_______________


⁽¹⁾	Includes expected reinsurance recoveries on catastrophe losses related to homeowners flood claims covered by the National Flood Insurance Program.

Company Restructuring (Tables)

9 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Schedule of changes in the restructuring liability

The following table presents changes in the restructuring liability during the nine months ended September 30, 2017.



($ in millions)	Employee costs			Exit costs			Total liability
Balance as of December 31, 2016	$	—		$	2		$	2
Expense incurred	46			18			64
Adjustments to liability	(4		)	—			(4		)
Payments applied against liability	(24		)	(7		)	(31		)
Balance as of September 30, 2017	$	18		$	13		$	31

Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Company's pension and postretirement benefit plans

The components of net periodic cost for the Company’s pension and postretirement benefit plans are as follows:



($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Pension benefits
Service cost	$	28		$	28		$	85		$	84
Interest cost	66			71			198			214
Expected return on plan assets	(102		)	(99		)	(306		)	(298		)
Amortization of:
Prior service credit	(14		)	(14		)	(42		)	(42		)
Net actuarial loss	48			44			142			131
Settlement loss	94			7			110			23
Net periodic pension cost	$	120		$	37		$	187		$	112

Postretirement benefits
Service cost	$	2		$	2		$	6		$	7
Interest cost	4			4			11			13
Amortization of:
Prior service credit	(6		)	(5		)	(18		)	(16		)
Net actuarial gain	(6		)	(2		)	(18		)	(18		)
Net periodic postretirement credit	$	(6	)	$	(1	)	$	(19	)	$	(14	)

Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2017

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 Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which are as follows:



($ in millions)	Nine months ended September 30,
	2017			2016
Net change in proceeds managed
Net change in fixed income securities	$	129		$	(436	)
Net change in short-term investments	(157		)	181
Operating cash flow used	(28		)	(255		)
Net change in cash	1			—
Net change in proceeds managed	$	(27	)	$	(255	)

Net change in liabilities
Liabilities for collateral, beginning of period	$	(1,129	)	$	(840	)
Liabilities for collateral, end of period	(1,156		)	(1,095		)
Operating cash flow provided	$	27		$	255

Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2017

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 on a pre-tax and after-tax basis are as follows:



($ in millions)	Three months ended September 30,
	2017									2016
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	300		$	(105	)	$	195		$	350		$	(123	)	$	227
Less: reclassification adjustment of realized capital gains and losses	107			(37		)	70			53			(19		)	34
Unrealized net capital gains and losses	193			(68		)	125			297			(104		)	193
Unrealized foreign currency translation adjustments	43			(15		)	28			(11		)	4			(7		)
Unrecognized pension and other postretirement benefit cost arising during the period	(5		)	3			(2		)	1			—			1
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(116		)	41			(75		)	(30		)	10			(20		)
Unrecognized pension and other postretirement benefit cost	111			(38		)	73			31			(10		)	21
Other comprehensive income	$	347		$	(121	)	$	226		$	317		$	(110	)	$	207

	Nine months ended September 30,
	2017									2016
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	1,165		$	(408	)	$	757		$	1,685		$	(589	)	$	1,096
Less: reclassification adjustment of realized capital gains and losses	245			(86		)	159			(156		)	55			(101		)
Unrealized net capital gains and losses	920			(322		)	598			1,841			(644		)	1,197

Unrealized foreign currency translation adjustments	55			(19		)	36			18			(6		)	12

Unrecognized pension and other postretirement benefit cost arising during the period	(8		)	5			(3		)	(6		)	3			(3		)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(174		)	61			(113		)	(78		)	27			(51		)
Unrecognized pension and other postretirement benefit cost	166			(56		)	110			72			(24		)	48
Other comprehensive income	$	1,141		$	(397	)	$	744		$	1,931		$	(674	)	$	1,257

General (Details) - USD ($) $ in Millions	12 Months Ended
General (Details) - USD ($) $ in Millions	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Available for sale equity securities, included in other comprehensive income		$ 966	$ 509
Limited partnership interests		6,600	5,814
Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Available for sale equity securities, included in other comprehensive income		966
EMA limited partnerships
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Limited partnership interests		5,260	$ 4,530
EMA limited partnerships \| Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Limited partnership interests		$ 200
Minimum \| Scenario, Forecast \| Accounting Standards Update 2016-20
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred policy acquisition costs, period increase	$ 145
Maximum \| Scenario, Forecast \| Accounting Standards Update 2016-20
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred policy acquisition costs, period increase	$ 175

Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income	$ 666	$ 520	$ 1,940	$ 1,037
Less: Preferred stock dividends	29	29	87	87
Net income applicable to common shareholders	$ 637	$ 491	$ 1,853	$ 950
Denominator:
Weighted average common shares outstanding (in shares)	361.3	371.5	363.5	374.4
Effect of dilutive potential common shares:
Stock options (in shares)	4.4	3.2	4.3	3.3
Restricted stock units(non-participating) and performance stock awards (in shares)	1.4	1.2	1.3	1.2
Weighted average common and dilutive potential common shares outstanding (in shares)	367.1	375.9	369.1	378.9
Earnings per common share - Basic (in dollars per share)	$ 1.76	$ 1.32	$ 5.10	$ 2.54
Earnings per common share - Diluted (in dollars per share)	$ 1.74	$ 1.31	$ 5.02	$ 2.51
Other Earnings Per Share Disclosures
Antidilutive stock options, exercise price exceeds market price (in shares)	0.2	3.6	2.5	4.7
Antidilutive stock options, exercise price exceeds market price, exercise price range, low end of range (in dollars per share)	$ 78.35	$ 58.14	$ 74.03	$ 57.29
Antidilutive stock options, exercise price exceeds market price, exercise price range, high end of range (in dollars per share)	$ 93.93	$ 71.29	$ 93.93	$ 71.29

Acquisition (Details) - USD ($) $ in Millions		9 Months Ended
Acquisition (Details) - USD ($) $ in Millions	Jan. 03, 2017	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 2,309	$ 1,219
SquareTrade
Business Acquisition [Line Items]
Consideration transferred	$ 1,400
Goodwill	1,080	1,090
Commissions paid to retailers	70
Intangible assets	555
Prepaid contractual liability insurance policy premium expenses	201
Unearned premiums	373
Net deferred income tax liability	$ 140
Goodwill, period increase		14
Restricted cash		$ 30

Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Reportable Segments (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information
Property-liability insurance premiums	$ 8,121	$ 7,869	$ 24,098	$ 23,406
Net investment income	843	748	2,488	2,241
Realized capital gains and losses	103	33	318	(92)
Life and annuity premiums and contract charges	593	571	1,777	1,701
Total revenues	9,660	9,221	28,681	27,256
Property-Liability
Segment Reporting Information
Property-liability insurance premiums	8,121	7,869	24,098	23,406
Net investment income	372	310	1,074	928
Realized capital gains and losses	82	53	302	(20)
Total revenues	8,575	8,232	25,474	24,314
Allstate Protection
Segment Reporting Information
Property-liability insurance premiums	8,121	7,869	24,098	23,406
Discontinued Lines and Coverages
Segment Reporting Information
Property-liability insurance premiums	0	0	0	0
Allstate Financial
Segment Reporting Information
Net investment income	461	427	1,383	1,281
Realized capital gains and losses	21	(21)	16	(70)
Life and annuity premiums and contract charges	593	571	1,777	1,701
Total revenues	1,075	977	3,176	2,912
Corporate and Other
Segment Reporting Information
Net investment income	10	11	31	32
Realized capital gains and losses	0	1	0	(2)
Total revenues	10	12	31	30
Auto \| Property-Liability
Segment Reporting Information
Property-liability insurance premiums	5,502	5,353	16,327	15,879
Homeowners \| Property-Liability
Segment Reporting Information
Property-liability insurance premiums	1,832	1,813	5,462	5,438
Other personal lines \| Property-Liability
Segment Reporting Information
Property-liability insurance premiums	439	426	1,306	1,271
Commercial lines \| Property-Liability
Segment Reporting Information
Property-liability insurance premiums	124	127	367	383
Other business lines \| Property-Liability
Segment Reporting Information
Property-liability insurance premiums	146	150	429	435
SquareTrade \| Property-Liability
Segment Reporting Information
Property-liability insurance premiums	78	0	207	0
Traditional life insurance \| Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	153	145	450	422
Accident and health insurance \| Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	232	216	697	646
Total life and annuity premiums \| Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	385	361	1,147	1,068
Interest-sensitive life insurance \| Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	204	206	620	623
Fixed annuities \| Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	4	4	10	10
Total contract charges \| Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	$ 208	$ 210	$ 630	$ 633

Reportable Segments (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Reportable Segments (Details 2) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property-Liability
Net investment income	$ 843	$ 748	$ 2,488	$ 2,241
Restructuring and related charges	(14)	(5)	(77)	(21)
Allstate Financial
Life and annuity premiums and contract charges	593	571	1,777	1,701
Corporate and Other
Net income applicable to common shareholders	637	491	1,853	950
Allstate Protection
Property-Liability
Underwriting income (loss)	517	455	1,258	518
Discontinued Lines and Coverages
Property-Liability
Underwriting income (loss)	(88)	(100)	(95)	(104)
Property-Liability
Property-Liability
Underwriting income (loss)	429	355	1,163	414
Net investment income	372	310	1,074	928
Income tax (expense) benefit on operations	(252)	(218)	(703)	(429)
Realized capital gains and losses, after-tax	54	36	199	(10)
Allstate Financial
Realized capital gains and losses, after-tax	54	36	199	(10)
Gain on disposition of operations, after-tax	1	0	7	0
Corporate and Other
Realized capital gains and losses, after-tax	54	36	199	(10)
Net income applicable to common shareholders	604	483	1,740	903
Allstate Financial
Property-Liability
Net investment income	461	427	1,383	1,281
Restructuring and related charges	(1)	0	(2)	(1)
Income tax (expense) benefit on operations	(79)	(43)	(206)	(147)
Realized capital gains and losses, after-tax	13	(14)	9	(46)
Allstate Financial
Life and annuity premiums and contract charges	593	571	1,777	1,701
Contract benefits and interest credited to contractholder funds	(629)	(667)	(1,935)	(1,939)
Operating costs and expenses and amortization of deferred policy acquisition costs	(188)	(194)	(597)	(577)
Operating income (loss)	157	94	420	318
Realized capital gains and losses, after-tax	13	(14)	9	(46)
Valuation changes on embedded derivatives that are not hedged, after-tax	(1)	0	(2)	(8)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(2)	(1)	(8)	(3)
Gain on disposition of operations, after-tax	1	1	3	3
Corporate and Other
Operating income (loss)	157	94	420	318
Realized capital gains and losses, after-tax	13	(14)	9	(46)
Net income applicable to common shareholders	168	80	422	264
Corporate and Other
Property-Liability
Net investment income	10	11	31	32
Income tax (expense) benefit on operations	60	26	121	77
Realized capital gains and losses, after-tax	0	0	0	(1)
Allstate Financial
Operating income (loss)	(134)	(72)	(295)	(216)
Realized capital gains and losses, after-tax	0	0	0	(1)
Corporate and Other
Operating costs and expenses	(175)	(80)	(360)	(238)
Preferred stock dividends	(29)	(29)	(87)	(87)
Operating income (loss)	(134)	(72)	(295)	(216)
Realized capital gains and losses, after-tax	0	0	0	(1)
Business combination expenses, after-tax	(1)	0	(14)	0
Net income applicable to common shareholders	$ (135)	$ (72)	$ (309)	$ (217)

Investments (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available for Sale Securities
Amortized cost	$ 57,608	$ 56,576
Gross unrealized gains	1,974	1,710
Gross unrealized losses	(191)	(447)
Fair value	59,391	57,839
U.S. government and agencies
Schedule of Available for Sale Securities
Amortized cost	3,843	3,572
Gross unrealized gains	65	74
Gross unrealized losses	(8)	(9)
Fair value	3,900	3,637
Municipal
Schedule of Available for Sale Securities
Amortized cost	7,484	7,116
Gross unrealized gains	332	304
Gross unrealized losses	(22)	(87)
Fair value	7,794	7,333
Corporate
Schedule of Available for Sale Securities
Amortized cost	43,259	42,742
Gross unrealized gains	1,419	1,178
Gross unrealized losses	(132)	(319)
Fair value	44,546	43,601
Foreign government
Schedule of Available for Sale Securities
Amortized cost	1,077	1,043
Gross unrealized gains	30	36
Gross unrealized losses	(14)	(4)
Fair value	1,093	1,075
Asset-backed securities (“ABS”)
Schedule of Available for Sale Securities
Amortized cost	1,263	1,169
Gross unrealized gains	16	13
Gross unrealized losses	(9)	(11)
Fair value	1,270	1,171
Residential mortgage-backed securities (“RMBS”)
Schedule of Available for Sale Securities
Amortized cost	512	651
Gross unrealized gains	101	85
Gross unrealized losses	(2)	(8)
Fair value	611	728
Commercial mortgage-backed securities (“CMBS”)
Schedule of Available for Sale Securities
Amortized cost	149	262
Gross unrealized gains	8	17
Gross unrealized losses	(4)	(9)
Fair value	153	270
Redeemable preferred stock
Schedule of Available for Sale Securities
Amortized cost	21	21
Gross unrealized gains	3	3
Gross unrealized losses	0	0
Fair value	$ 24	$ 24

Investments (Details 2) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Amortized cost
Due in one year or less	$ 4,392
Due after one year through five years	29,466
Due after five years through ten years	16,604
Due after ten years	5,222
Subtotal	55,684
ABS, RMBS and CMBS	1,924
Amortized cost	57,608	$ 56,576
Fair value
Due in one year or less	4,415
Due after one year through five years	30,044
Due after five years through ten years	17,042
Due after ten years	5,856
Subtotal	57,357
ABS, RMBS and CMBS	2,034
Total fixed income securities	$ 59,391	$ 57,839

Investments (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Investments (Details 3) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Investment Income:
Investment income, before expense	$ 898	$ 790	$ 2,642	$ 2,368
Investment expense	(55)	(42)	(154)	(127)
Net investment income	843	748	2,488	2,241
Fixed income securities
Net Investment Income:
Investment income, before expense	519	508	1,564	1,546
Equity securities
Net Investment Income:
Investment income, before expense	37	31	130	103
Mortgage loans
Net Investment Income:
Investment income, before expense	52	56	157	162
Limited partnership interests
Net Investment Income:
Investment income, before expense	223	136	596	383
Short-term investments
Net Investment Income:
Investment income, before expense	9	4	21	11
Other
Net Investment Income:
Investment income, before expense	$ 58	$ 55	$ 174	$ 163

Investments (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Investments (Details 4) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Realized capital gains and losses by asset type
Realized capital gains and losses	$ 103	$ 33	$ 318	$ (92)
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains and losses	41	(1)	78	(48)
Equity securities
Realized capital gains and losses by asset type
Realized capital gains and losses	57	45	182	(34)
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains and losses	1	0	1	1
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains and losses	21	12	92	25
Derivatives
Realized capital gains and losses by asset type
Realized capital gains and losses	(17)	(15)	(40)	(22)
Other
Realized capital gains and losses by asset type
Realized capital gains and losses	$ 0	$ (8)	$ 5	$ (14)

Investments (Details 5) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Investments (Details 5) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investments [Abstract]
Impairment write-downs	$ (23)	$ (63)	$ (94)	$ (185)
Change in intent write-downs	(5)	(10)	(43)	(48)
Net OTTI losses recognized in earnings	(28)	(73)	(137)	(233)
Sales and other	148	121	495	166
Valuation and settlements of derivative instruments	(17)	(15)	(40)	(25)
Total realized capital gains and losses	103	33	318	(92)
Fixed income and equity securities
Schedule of Available for Sale Securities
Gross gains on sales of fixed income securities	145	150	521	456
Gross loss on sales of fixed income securities	$ 36	$ 62	$ 161	$ 347

Investments (Details 6) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Investments (Details 6) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	$ (26)	$ (73)	$ (135)	$ (241)
Included in OCI	(2)	0	(2)	8
Net OTTI losses recognized in earnings	(28)	(73)	(137)	(233)
Municipal
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses			(1)	0
Included in OCI			(2)	0
Net OTTI losses recognized in earnings			(3)	0
Corporate
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	(13)	(9)	(30)
Included in OCI	0	0	3	7
Net OTTI losses recognized in earnings	0	(13)	(6)	(23)
Asset-backed securities (“ABS”)
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	0	(1)	(6)
Included in OCI	(1)	0	(1)	0
Net OTTI losses recognized in earnings	(1)	0	(2)	(6)
Residential mortgage-backed securities (“RMBS”)
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	(1)	(1)	(1)
Included in OCI	0	0	(3)	0
Net OTTI losses recognized in earnings	0	(1)	(4)	(1)
Fixed income securities
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(1)	(17)	(21)	(44)
Included in OCI	(2)	0	(2)	8
Net OTTI losses recognized in earnings	(3)	(17)	(23)	(36)
Equity securities
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(8)	(27)	(77)	(155)
Included in OCI	0	0	0	0
Net OTTI losses recognized in earnings	(8)	(27)	(77)	(155)
Mortgage loans
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(1)	0	(1)	0
Included in OCI	0	0	0	0
Net OTTI losses recognized in earnings	(1)	0	(1)	0
Limited partnership interests
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(16)	(22)	(32)	(33)
Included in OCI	0	0	0	0
Net OTTI losses recognized in earnings	(16)	(22)	(32)	(33)
Other
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	(7)	(4)	(9)
Included in OCI	0	0	0	0
Net OTTI losses recognized in earnings	0	(7)	(4)	(9)
Commercial mortgage-backed securities (“CMBS”)
Realized capital gains and losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(1)	(3)	(9)	(7)
Included in OCI	(1)	0	1	1
Net OTTI losses recognized in earnings	$ (2)	$ (3)	$ (8)	$ (6)

Investments (Details 7) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Investments [Abstract]
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 213	$ 221
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	(108)	(133)
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	(5)	(8)
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	(3)	(7)
Asset-backed securities (“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	(15)	(21)
Residential mortgage-backed securities (“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	(80)	(90)
Commercial mortgage-backed securities (“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	$ (5)	$ (7)

Investments (Details 8) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Investments (Details 8) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Credit Losses on Fixed Income Securities
Beginning balance	$ (281)	$ (331)	$ (318)	$ (392)
Additional credit loss for securities previously other-than-temporarily impaired	(3)	(3)	(15)	(14)
Additional credit loss for securities not previously other-than-temporarily impaired	0	(14)	(8)	(22)
Reduction in credit loss for securities disposed or collected	20	12	76	92
Change in credit loss due to accretion of increase in cash flows	0	0	1	0
Ending balance	$ (264)	$ (336)	$ (264)	$ (336)

Investments (Details 9) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair value
Fixed income securities:	$ 59,391	$ 57,839
Equity securities	6,434	5,666
Short-term investments	2,198	4,288
Derivative instruments	1	5
Gross unrealized Gains
Fixed income securities	1,974	1,710
Equity securities	1,006	594
Short-term investments	0	0
Derivative instruments	2	5
Gross unrealized Losses
Fixed income securities	(191)	(447)
Equity securities	(40)	(85)
Short-term investments	0	0
Derivative instruments	(4)	(3)
Fair value of derivative securities classified as assets, with unrealized net gains (losses) in AOCI	1	5
Unrealized net gains (losses)
Fixed income securities	1,783	1,263
Equity securities	966	509
Short-term investments	0	0
Derivative instruments	(2)	2
EMA limited partnerships	0	(4)
Unrealized net capital gains and losses, pre-tax	2,747	1,770
Amount recognized for:
Insurance reserves	0	0
DAC and DSI	(203)	(146)
Amounts recognized	(203)	(146)
Deferred income taxes	(893)	(571)
Total unrealized net capital gains and losses	$ 1,651	$ 1,053

Investments (Details 10) $ in Millions	9 Months Ended
Investments (Details 10) $ in Millions	Sep. 30, 2017 USD ($)
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 977
Amount recognized for:
Insurance reserves	0
DAC and DSI	(57)
Amounts recognized	(57)
Deferred income taxes	(322)
Increase in unrealized net capital gains and losses, after-tax	598
EMA limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	4
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	520
Equity securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	457
Derivatives
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ (4)

Investments (Details 11) $ in Millions	Sep. 30, 2017 USD ($) contract	Dec. 31, 2016 USD ($) security contract
Fixed income and equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	1,892	2,590
Fair value, continuous unrealized loss position for less than 12 months	$ 13,511	$ 18,572
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (142)	$ (407)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	391	334
Fair value, continuous unrealized loss position for 12 months or more	$ 1,789	$ 1,087
Unrealized losses, continuous unrealized loss position for 12 months or more	(89)	(125)
Total unrealized losses
Total unrealized losses	$ (231)	$ (532)
U.S. government and agencies
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	64	46
Fair value, continuous unrealized loss position for less than 12 months	$ 2,625	$ 943
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (7)	$ (9)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	7	0
Fair value, continuous unrealized loss position for 12 months or more	$ 93	$ 0
Unrealized losses, continuous unrealized loss position for 12 months or more	(1)	0
Total unrealized losses
Total unrealized losses	$ (8)	$ (9)
Municipal
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	938	1,310
Fair value, continuous unrealized loss position for less than 12 months	$ 1,736	$ 3,073
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (14)	$ (76)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	83	8
Fair value, continuous unrealized loss position for 12 months or more	$ 172	$ 29
Unrealized losses, continuous unrealized loss position for 12 months or more	(8)	(11)
Total unrealized losses
Total unrealized losses	$ (22)	$ (87)
Corporate
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	560	862
Fair value, continuous unrealized loss position for less than 12 months	$ 7,468	$ 13,343
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (74)	$ (256)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	94	83
Fair value, continuous unrealized loss position for 12 months or more	$ 1,370	$ 678
Unrealized losses, continuous unrealized loss position for 12 months or more	(58)	(63)
Total unrealized losses
Total unrealized losses	$ (132)	$ (319)
Foreign government
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	68	41
Fair value, continuous unrealized loss position for less than 12 months	$ 697	$ 225
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (14)	$ (4)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	0	0
Fair value, continuous unrealized loss position for 12 months or more	$ 0	$ 0
Unrealized losses, continuous unrealized loss position for 12 months or more	0	0
Total unrealized losses
Total unrealized losses	$ (14)	$ (4)
Asset-backed securities (“ABS”)
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	44	31
Fair value, continuous unrealized loss position for less than 12 months	$ 379	$ 222
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (1)	$ (1)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	10	14
Fair value, continuous unrealized loss position for 12 months or more	$ 34	$ 109
Unrealized losses, continuous unrealized loss position for 12 months or more	(8)	(10)
Total unrealized losses
Total unrealized losses	$ (9)	$ (11)
Residential mortgage-backed securities (“RMBS”)
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	84	89
Fair value, continuous unrealized loss position for less than 12 months	$ 42	$ 53
Unrealized losses, continuous unrealized loss position for less than 12 months	$ 0	$ (1)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	176	179
Fair value, continuous unrealized loss position for 12 months or more	$ 57	$ 91
Unrealized losses, continuous unrealized loss position for 12 months or more	(2)	(7)
Total unrealized losses
Total unrealized losses	$ (2)	$ (8)
Commercial mortgage-backed securities (“CMBS”)
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	5	15
Fair value, continuous unrealized loss position for less than 12 months	$ 20	$ 59
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (2)	$ (4)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	4	4
Fair value, continuous unrealized loss position for 12 months or more	$ 15	$ 15
Unrealized losses, continuous unrealized loss position for 12 months or more	(2)	(5)
Total unrealized losses
Total unrealized losses	$ (4)	$ (9)
Redeemable preferred stock
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security		1
Fair value, continuous unrealized loss position for less than 12 months		$ 0
Unrealized losses, continuous unrealized loss position for less than 12 months		$ 0
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security		0
Fair value, continuous unrealized loss position for 12 months or more		$ 0
Unrealized losses, continuous unrealized loss position for 12 months or more		0
Total unrealized losses
Total unrealized losses		$ 0
Fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	1,763	2,395
Fair value, continuous unrealized loss position for less than 12 months	$ 12,967	$ 17,918
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (112)	$ (351)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	374	288
Fair value, continuous unrealized loss position for 12 months or more	$ 1,741	$ 922
Unrealized losses, continuous unrealized loss position for 12 months or more	(79)	(96)
Total unrealized losses
Total unrealized losses	$ (191)	$ (447)
Equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	129	195
Fair value, continuous unrealized loss position for less than 12 months	$ 544	$ 654
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (30)	$ (56)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	17	46
Fair value, continuous unrealized loss position for 12 months or more	$ 48	$ 165
Unrealized losses, continuous unrealized loss position for 12 months or more	(10)	(29)
Total unrealized losses
Total unrealized losses	$ (40)	$ (85)
Investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	1,689	2,202
Fair value, continuous unrealized loss position for less than 12 months	$ 12,345	$ 15,678
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (96)	$ (293)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	323	201
Fair value, continuous unrealized loss position for 12 months or more	$ 1,530	$ 493
Unrealized losses, continuous unrealized loss position for 12 months or more	(53)	(51)
Total unrealized losses
Total unrealized losses	$ (149)	$ (344)
Below investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	74	193
Fair value, continuous unrealized loss position for less than 12 months	$ 622	$ 2,240
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (16)	$ (58)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	51	87
Fair value, continuous unrealized loss position for 12 months or more	$ 211	$ 429
Unrealized losses, continuous unrealized loss position for 12 months or more	(26)	(45)
Total unrealized losses
Total unrealized losses	$ (42)	$ (103)

Investments (Details 12) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	$ 188
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	43
Limited partnership interests	6,600	$ 5,814
Fixed income and equity securities
Other details of unrealized loss
Unrealized losses	231	532
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	133
Unrealized losses	149	344
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	16
Equity securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	28
Unrealized losses	40	85
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	27
Unrealized losses	42	103
Unrealized losses having loss of less than twenty percent, less than 12 months	16
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	15
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	2
Below Investment Grade Equity Securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	12
Equity-method limited partnerships
Other details of unrealized loss
Limited partnership interests	5,260	4,530
Carrying value
Other details of unrealized loss
Cost method limited partnerships	1,339	1,282
Carrying value \| Cost-method Investments
Other details of unrealized loss
Cost method limited partnerships	$ 1,340	$ 1,280

Investments (Details 13) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Mortgage Loans on Real Estate, Commercial and Consumer, Net	$ 4,322	$ 4,486
Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	4,268	4,442
Variable rate mortgage loans	39	39
Mortgage Loans on Real Estate, Commercial and Consumer, Net	4,307	4,481
Below 1.0 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	4	60
Variable rate mortgage loans	0	0
Mortgage Loans on Real Estate, Commercial and Consumer, Net	4	60
1.0 - 1.25 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	349	324
Variable rate mortgage loans	0	0
Mortgage Loans on Real Estate, Commercial and Consumer, Net	349	324
1.26 - 1.50 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	1,111	1,293
Variable rate mortgage loans	0	0
Mortgage Loans on Real Estate, Commercial and Consumer, Net	1,111	1,293
Above 1.50 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	2,804	2,765
Variable rate mortgage loans	39	39
Mortgage Loans on Real Estate, Commercial and Consumer, Net	$ 2,843	$ 2,804

Investments (Details 14) - Mortgage loans, non-impaired - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Net carrying value of impaired mortgage loans
Impaired mortgage loans with a valuation allowance					$ 15	$ 5
Impaired mortgage loans without a valuation allowance					0	0
Total impaired mortgage loans					15	5
Valuation allowance on impaired mortgage loans	$ 3	$ 3	$ 3	$ 3	$ 4	$ 3
Average carrying value and interest income recognized on impaired mortgage loans
Average impaired mortgage loans			8	6
Rollforward of the valuation allowance on impaired mortgage loans
Beginning balance	3	3	3	3
Net increase in valuation allowance	1	0	1	0
Charge offs	0	0	0	0
Ending balance	$ 4	$ 3	$ 4	$ 3

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Assets
Fixed income securities:	$ 59,391	$ 57,839
Equity securities	6,434	5,666
Short-term investments	2,198	4,288
Other investments: Free-standing derivatives	1		$ 1
Separate account assets	3,422	3,393
Counterparty and cash collateral netting	$ (9)	$ (9)
% of total assets at fair value	0.00%	0.00%
Liabilities
Other liabilities: Free-standing derivatives			$ (4)
Counterparty and cash collateral netting	$ 21	$ 28
Counterparty and cash collateral netting as a percent of liabilities measured at fair value	(6.10%)	(8.40%)
U.S. government and agencies
Assets
Fixed income securities:	$ 3,900	$ 3,637
Municipal
Assets
Fixed income securities:	7,794	7,333
Foreign government
Assets
Fixed income securities:	1,093	1,075
Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	611	728
Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	153	270
Redeemable preferred stock
Assets
Fixed income securities:	24	24
Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	$ 12,931	$ 12,408
% of total assets at fair value	18.00%	17.40%
Liabilities
Total liabilities at fair value	$ (1)	$ (1)
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	$ 57,884	$ 58,161
% of total assets at fair value	80.90%	81.50%
Liabilities
Total liabilities at fair value	$ (69)	$ (68)
Liabilities as a percent of liabilities measured at fair value	20.20%	20.40%
Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	$ 765	$ 762
% of total assets at fair value	1.10%	1.10%
Liabilities
Total liabilities at fair value	$ (292)	$ (293)
Liabilities as a percent of liabilities measured at fair value	85.60%	87.70%
Recurring
Assets
Other investments: Free-standing derivatives, Counterparty and cash collateral netting	$ (9)	$ (9)
Liabilities
Counterparty and cash collateral netting	21	28
Recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities:	3,190	2,918
Equity securities	5,938	5,247
Short-term investments	380	850
Other investments: Free-standing derivatives	0	0
Separate account assets	3,422	3,393
Other assets	1	0
Total assets at fair value	12,931	12,408
Liabilities
Other liabilities: Free-standing derivatives	(1)	(1)
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities:	3,190	2,918
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) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Commercial mortgage-backed securities (“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:	55,629	54,363
Equity securities	328	256
Short-term investments	1,818	3,423
Other investments: Free-standing derivatives	109	119
Separate account assets	0	0
Other assets	0	0
Total assets at fair value	57,884	58,161
Liabilities
Other liabilities: Free-standing derivatives	(69)	(68)
Recurring \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities:	710	719
Recurring \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities:	7,687	7,208
Recurring \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities:	32,269	31,414
Recurring \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities:	11,923	11,846
Recurring \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities:	1,093	1,075
Recurring \| Significant other observable inputs (Level 2) \| ABS - CDO
Assets
Fixed income securities:	545	650
Recurring \| Significant other observable inputs (Level 2) \| ABS - consumer and other
Assets
Fixed income securities:	640	452
Recurring \| Significant other observable inputs (Level 2) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	611	727
Recurring \| Significant other observable inputs (Level 2) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	127	248
Recurring \| Significant other observable inputs (Level 2) \| Redeemable preferred stock
Assets
Fixed income securities:	24	24
Recurring \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities:	572	558
Equity securities	168	163
Short-term investments	0	15
Other investments: Free-standing derivatives	1	1
Separate account assets	0	0
Other assets	0	1
Total assets at fair value	741	738
Liabilities
Other liabilities: Free-standing derivatives	0	(3)
Recurring \| Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities:	0	0
Recurring \| Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities:	107	125
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities:	104	78
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities:	250	263
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:	19	27
Recurring \| Significant unobservable inputs (Level 3) \| ABS - consumer and other
Assets
Fixed income securities:	66	42
Recurring \| Significant unobservable inputs (Level 3) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	0	1
Recurring \| Significant unobservable inputs (Level 3) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	26	22
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	24
Derivatives embedded in life and annuity contracts \| Recurring \| Quoted prices in active markets for identical assets (Level 1)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Derivatives embedded in life and annuity contracts \| Recurring \| Significant other observable inputs (Level 2)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Derivatives embedded in life and annuity contracts \| Recurring \| Significant unobservable inputs (Level 3)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(292)	(290)
Fair value
Assets
Total assets at fair value	$ 71,571	$ 71,322
% of total assets at fair value	100.00%	100.00%
Liabilities
Total liabilities at fair value	$ (341)	$ (334)
Liabilities as a percent of liabilities measured at fair value	100.00%	100.00%
Fair value \| Recurring
Assets
Fixed income securities:	$ 59,391	$ 57,839
Equity securities	6,434	5,666
Short-term investments	2,198	4,288
Other investments: Free-standing derivatives	101	111
Separate account assets	3,422	3,393
Other assets	1	1
Total assets at fair value	71,547	71,298
Liabilities
Other liabilities: Free-standing derivatives	(49)	(44)
Fair value \| Recurring \| U.S. government and agencies
Assets
Fixed income securities:	3,900	3,637
Fair value \| Recurring \| Municipal
Assets
Fixed income securities:	7,794	7,333
Fair value \| Recurring \| Corporate - public
Assets
Fixed income securities:	32,373	31,492
Fair value \| Recurring \| Corporate - privately placed
Assets
Fixed income securities:	12,173	12,109
Fair value \| Recurring \| Foreign government
Assets
Fixed income securities:	1,093	1,075
Fair value \| Recurring \| ABS - CDO
Assets
Fixed income securities:	564	677
Fair value \| Recurring \| ABS - consumer and other
Assets
Fixed income securities:	706	494
Fair value \| Recurring \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	611	728
Fair value \| Recurring \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	153	270
Fair value \| Recurring \| Redeemable preferred stock
Assets
Fixed income securities:	24	24
Fair value \| Non-recurring
Assets
Total assets at fair value	24	24
Liabilities
Limited partnership interests	14	24
Mortgages loans	10
Fair value \| Derivatives embedded in life and annuity contracts \| Recurring
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(292)	(290)
Fixed Income Securities Valued Based on Nonbinding Broker Quotes
Assets
Total assets at fair value	304	307
Municipal Not Rated by Third Party Credit Rating Agencies
Assets
Total assets at fair value	$ 62	$ 80

Fair Value of Assets and Liabilities (Details 2) - Derivatives embedded in life and annuity contracts - Equity-indexed and forward starting options - Stochastic cash flow model - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Quantitative information about the significant unobservable inputs
Liabilities, fair value	$ (253)	$ (247)
Weighted average projected option cost (as a percent)	1.74%	1.75%
Minimum
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	1.00%	1.00%
Maximum
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	2.20%	2.20%

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	$ 842	$ 1,019	$ 735	$ 973
Total gains (losses) included in: net income	3	4	23	(14)
Total gains (losses) included in: OCI	4	4	13	21
Transfers into Level 3	0	0	60	60
Transfers out of Level 3	(173)	(286)	(322)	(383)
Purchases	83	221	371	382
Sales	(5)	(21)	(106)	(46)
Issues	0	0	0	0
Settlements	(13)	(32)	(33)	(84)
Balance at end of period	741	909	741	909
Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation Calculation
Balance at the beginning of the period	(285)	(304)	(290)	(299)
Total gains (losses) included in: net income	9	3	6	11
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	(1)	(1)	(2)
Settlements	2	1	5	5
Balance at the end of the period	(292)	(307)	(292)	(307)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Total realized and unrealized gains (losses) included in net income, recurring Level 3 assets and liabilities	(6)	1	17	(25)
Free-standing derivatives	1	1	1	1
Free-standing derivatives, liabilities		4		4
Realized capital gains and losses
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income		1	7	(24)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	(3)	1	(3)	(37)
(Loss) gain reclassified from AOCI into income (net investment income)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	3	3	17	10
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	3	3	17	11
Interest credited to contractholder funds
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	(5)	(6)	(11)	(12)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	(5)	(6)	(11)	(12)
Life and annuity contract benefits
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	(4)	3	4	1
Fixed income securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	675	907	558	846
Total gains (losses) included in: net income	1	1	6	15
Total gains (losses) included in: OCI	3	4	9	13
Transfers into Level 3	0	0	60	60
Transfers out of Level 3	(172)	(286)	(318)	(383)
Purchases	83	178	343	330
Sales	(5)	(21)	(53)	(46)
Issues	0	0	0	0
Settlements	(13)	(32)	(33)	(84)
Balance at end of period	572	751	572	751
U.S. government and agencies
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period				5
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				(4)
Purchases				0
Sales				0
Issues				0
Settlements				(1)
Balance at end of period		0		0
Municipal
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	114	149	125	161
Total gains (losses) included in: net income	0	1	(1)	11
Total gains (losses) included in: OCI	0	(1)	6	(6)
Transfers into Level 3	0	0	0	6
Transfers out of Level 3	(4)	0	(5)	0
Purchases	1	22	6	22
Sales	(3)	(11)	(23)	(33)
Issues	0	0	0	0
Settlements	(1)	0	(1)	(1)
Balance at end of period	107	160	107	160
Corporate - public
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	60	74	78	46
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	1
Transfers into Level 3	0	0	0	25
Transfers out of Level 3	(4)	(6)	(20)	(13)
Purchases	51	40	50	47
Sales	(1)	(10)	0	(6)
Issues	0	0	0	0
Settlements	(2)	0	(4)	(2)
Balance at end of period	104	98	104	98
Corporate - privately placed
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	266	585	263	502
Total gains (losses) included in: net income	1	0	7	4
Total gains (losses) included in: OCI	2	2	0	15
Transfers into Level 3	0	0	30	16
Transfers out of Level 3	(34)	(280)	(34)	(363)
Purchases	18	38	22	181
Sales	(1)	0	(30)	0
Issues	0	0	0	0
Settlements	(2)	(29)	(8)	(39)
Balance at end of period	250	316	250	316
ABS - CDO
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	91	33	27	61
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	1	3	3	5
Transfers into Level 3	0	0	30	10
Transfers out of Level 3	(68)	0	(190)	(3)
Purchases	0	40	160	40
Sales	0	0	0	(2)
Issues	0	0	0	0
Settlements	(5)	(2)	(11)	(37)
Balance at end of period	19	74	19	74
ABS - consumer and other
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	120	45	42	50
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	(2)
Transfers into Level 3	0	0	0	3
Transfers out of Level 3	(62)	0	(69)	0
Purchases	10	35	99	35
Sales	0	0	0	(5)
Issues	0	0	0	0
Settlements	(2)	(1)	(6)	(2)
Balance at end of period	66	79	66	79
Residential mortgage-backed securities (“RMBS”)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period		1	1	1
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
Purchases		0	0	0
Sales		0	0	0
Issues		0	0	0
Settlements		0	(1)	0
Balance at end of period	0	1	0	1
Commercial mortgage-backed securities (“CMBS”)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	24	20	22	20
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	3	3	6	5
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	(1)	0	(2)	(2)
Balance at end of period	26	23	26	23
Equity securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	166	118	163	133
Total gains (losses) included in: net income	2	(1)	15	(33)
Total gains (losses) included in: OCI	1	0	4	8
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	(1)	0	(4)	0
Purchases	0	43	3	52
Sales	0	0	(13)	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	168	160	168	160
Short-term investments
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period			15
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
Purchases			25
Sales			(40)
Issues			0
Settlements			0
Balance at end of period	0		0
Free-standing derivatives, net
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	1	(7)	(2)	(7)
Total gains (losses) included in: net income	0	4	3	4
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	1	(3)	1	(3)
Other assets
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period		1	1	1
Total gains (losses) included in: net income		0	(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
Purchases		0	0	0
Sales		0	0	0
Issues		0	0	0
Settlements		0	0	0
Balance at end of period	0	1	0	1
Derivatives embedded in life and annuity contracts
Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation Calculation
Balance at the beginning of the period	(285)	(304)	(290)	(299)
Total gains (losses) included in: net income	9	3	6	11
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	(1)	(1)	(2)
Settlements	2	1	5	5
Balance at the end of the period	$ (292)	$ (307)	$ (292)	$ (307)

Fair Value of Assets and Liabilities (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	$ 0	$ 4	$ 13	$ (26)
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	(9)	(3)	(6)	(11)
Total realized and unrealized gains (losses) included in net income, recurring Level 3 assets and liabilities	(6)	1	17	(25)
Gain (Loss) on Investments
Gains (losses) included in net income for Level 3 assets and liabilities:
Total realized and unrealized gains (losses) included in net income, recurring Level 3 assets and liabilities	(9)	1	7	(37)
Realized capital gains and losses
Gains (losses) included in net income for Level 3 assets and liabilities:
Change in unrealized gain (loss)	(3)	1	(3)	(37)
(Loss) gain reclassified from AOCI into income (net investment income)
Gains (losses) included in net income for Level 3 assets and liabilities:
Change in unrealized gain (loss)	3	3	17	11
Interest credited to contractholder funds
Gains (losses) included in net income for Level 3 assets and liabilities:
Change in unrealized gain (loss)	(5)	(6)	(11)	(12)
Life and annuity contract benefits
Gains (losses) included in net income for Level 3 assets and liabilities:
Change in unrealized gain (loss)	(4)	3	4	1
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	(9)	(3)	(6)	(11)
Municipal
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	0	1	(3)	2
Corporate
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	1	0	1	1
Fixed income securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	1	1	(2)	3
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	2	(1)	16	(33)
Free-standing derivatives, net
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	(3)	4	0	4
Other assets
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	$ 0	$ 0	$ (1)	$ 0

Fair Value of Assets and Liabilities (Details 5) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Financial assets
Mortgage loans	$ 4,322	$ 4,486
Financial liabilities
Long-term debt	6,349	6,347
Liability for collateral	1,156	1,129	$ 1,095	$ 840
Carrying value
Financial assets
Mortgage loans	4,322	4,486
Cost method limited partnerships	1,339	1,282
Bank loans	1,731	1,669
Agent loans	523	467
Financial liabilities
Contractholder funds on investment contracts	10,618	11,313
Long-term debt	6,349	6,347
Liability for collateral	1,156	1,129
Fair value
Financial assets
Mortgage loans	4,535	4,514
Cost method limited partnerships	1,579	1,493
Bank loans	1,734	1,677
Agent loans	520	467
Financial liabilities
Contractholder funds on investment contracts	11,203	12,009
Long-term debt	7,161	6,920
Liability for collateral	$ 1,156	$ 1,129

Derivative Financial Instruments (Details)	9 Months Ended
Derivative Financial Instruments (Details)	Sep. 30, 2017 USD ($) contract	Dec. 31, 2016 USD ($) contract
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Assumed recoveries under sale of credit protection	$ 0
Cash and securities pledged in the form of margin deposits	35,000,000
Derivatives, Fair Value
Total asset derivatives, notional amount	792,000,000	$ 1,103,000,000
Total liability derivatives, notional amount	3,867,000,000	2,673,000,000
Total derivatives, notional amount	$ 4,659,000,000	$ 3,776,000,000
Total asset derivatives, number of contracts \| contract	8,167	4,233
Total liability derivatives, number of contracts \| contract	5,895	4,848
Total derivatives, Number of contracts \| contract	14,062	9,081
Derivative assets net amount on balance sheet	$ 92,000,000	$ 93,000,000
Asset derivatives gross amount	105,000,000	121,000,000
Asset derivatives, gross liability	(13,000,000)	(28,000,000)
Derivative liabilities net amount on balance sheet	(343,000,000)	(334,000,000)
Total derivatives, fair value, net	(251,000,000)	(241,000,000)
Liability derivatives, gross asset	6,000,000	0
Liability derivatives gross amount	(349,000,000)	(334,000,000)
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 743,000,000	$ 1,054,000,000
Total asset derivatives, number of contracts \| contract	8,167	4,233
Derivative assets net amount on balance sheet	$ 91,000,000	$ 88,000,000
Asset derivatives gross amount	103,000,000	116,000,000
Asset derivatives, gross liability	(12,000,000)	(28,000,000)
Foreign currency swap agreements \| Other investments \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	49,000,000	49,000,000
Derivative assets net amount on balance sheet	1,000,000	5,000,000
Asset derivatives gross amount	2,000,000	5,000,000
Asset derivatives, gross liability	(1,000,000)	0
Interest rate cap agreements \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	41,000,000	65,000,000
Derivative assets net amount on balance sheet	1,000,000	1,000,000
Asset derivatives gross amount	1,000,000	1,000,000
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	11,000,000
Derivative liabilities net amount on balance sheet	0
Liability derivatives, gross asset	0
Liability derivatives gross amount	0
Options \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 173,000,000	$ 0
Total asset derivatives, number of contracts \| contract	6,301	3,972
Derivative assets net amount on balance sheet	$ 96,000,000	$ 88,000,000
Asset derivatives gross amount	96,000,000	88,000,000
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	1,866	261
Derivative assets net amount on balance sheet	$ 1,000,000	$ 0
Asset derivatives gross amount	1,000,000	0
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	$ 595,000,000	$ 0
Total liability derivatives, number of contracts \| contract	5,895	4,848
Derivative liabilities net amount on balance sheet	$ (34,000,000)	$ (39,000,000)
Liability derivatives, gross asset	2,000,000	0
Liability derivatives gross amount	(36,000,000)	(39,000,000)
Foreign currency forwards \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	322,000,000	759,000,000
Derivative assets net amount on balance sheet	(6,000,000)	0
Asset derivatives gross amount	3,000,000	24,000,000
Asset derivatives, gross liability	(9,000,000)	(24,000,000)
Foreign currency forwards \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	568,000,000
Derivative liabilities net amount on balance sheet	(8,000,000)
Liability derivatives, gross asset	3,000,000
Liability derivatives gross amount	(11,000,000)
Guaranteed accumulation benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	234,000,000	391,000,000
Derivative liabilities net amount on balance sheet	(25,000,000)	(34,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(25,000,000)	(34,000,000)
Guaranteed withdrawal benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	274,000,000	290,000,000
Derivative liabilities net amount on balance sheet	(14,000,000)	(9,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(14,000,000)	(9,000,000)
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	1,764,000,000	1,751,000,000
Derivative liabilities net amount on balance sheet	(253,000,000)	(247,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(253,000,000)	(247,000,000)
Credit default swaps – buying protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	104,000,000	87,000,000
Derivative assets net amount on balance sheet	(2,000,000)	(4,000,000)
Asset derivatives gross amount	1,000,000	0
Asset derivatives, gross liability	(3,000,000)	(4,000,000)
Credit default swaps – buying protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	416,000,000	136,000,000
Derivative liabilities net amount on balance sheet	(9,000,000)	(2,000,000)
Liability derivatives, gross asset	1,000,000	0
Liability derivatives gross amount	(10,000,000)	(2,000,000)
Credit default swaps – selling protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	100,000,000	140,000,000
Derivative assets net amount on balance sheet	1,000,000	2,000,000
Asset derivatives gross amount	1,000,000	2,000,000
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	5,000,000	105,000,000
Derivative liabilities net amount on balance sheet	0	(3,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	0	(3,000,000)
Other contracts \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	3,000,000	3,000,000
Derivative assets net amount on balance sheet	0	1,000,000
Asset derivatives gross amount	0	1,000,000
Asset derivatives, gross liability	$ 0	$ 0

Derivative Financial Instruments (Details 2) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Asset derivatives
Asset derivatives gross amount	$ 105	$ 121
Asset derivatives, gross liability	(13)	(28)
Derivative assets net amount on balance sheet	92	93
Liability derivatives
Liability derivatives gross amount	(349)	(334)
Liability derivatives, gross asset	6	0
Derivative liabilities net amount on balance sheet	(343)	(334)
OTC derivatives
Asset derivatives
Asset derivatives gross amount	12	31
Asset derivatives, gross liability	(19)	(28)
Derivative, collateral, right to reclaim cash	10	19
Derivative assets net amount on balance sheet	3	22
Derivative assets received under securities collateral	0	(9)
Derivative asset, fair value, amount offset against collateral	3	13
Liability derivatives
Liability derivatives gross amount	(28)	(33)
Liability derivatives, gross asset	19	28
Derivative liability offsets under cash collateral pledged	2	0
Derivative liabilities net amount on balance sheet	(7)	(5)
Derivative liabilities received under securities collateral	3	4
Derivative liability, fair value, amount offset against collateral	$ (4)	$ (1)

Derivative Financial Instruments (Details 3) - USD ($)	3 Months Ended		9 Months Ended
Derivative Financial Instruments (Details 3) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash flow hedge losses to be reclassified from AOCI during the next twelve months	$ 2,000,000		$ 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	$ 0
Effective portion
Loss recognized in OCI on derivatives during the period	(3,000,000)	0	(5,000,000)	(1,000,000)
(Loss) gain recognized in OCI on derivatives during the term of the hedging relationship	(2,000,000)	1,000,000	(2,000,000)	1,000,000
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(4,000,000)	(2,000,000)	16,000,000	(39,000,000)
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	(17,000,000)	(15,000,000)	(40,000,000)	(25,000,000)
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	(4,000,000)	3,000,000	4,000,000	1,000,000
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	8,000,000	8,000,000	26,000,000	0
Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	9,000,000	2,000,000	26,000,000	(15,000,000)
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives				(1,000,000)
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				(1,000,000)
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
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
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
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	9,000,000	11,000,000	36,000,000	5,000,000
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	(10,000,000)	(10,000,000)	(17,000,000)	(15,000,000)
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	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	11,000,000	14,000,000	33,000,000	9,000,000
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	8,000,000	7,000,000	20,000,000	11,000,000
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(7,000,000)	(3,000,000)	(3,000,000)	(8,000,000)
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	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	(4,000,000)	3,000,000	4,000,000	1,000,000
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	(3,000,000)	(6,000,000)	(7,000,000)	(9,000,000)
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	0
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(4,000,000)	(10,000,000)	(14,000,000)	(30,000,000)
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	(5,000,000)	(5,000,000)	(20,000,000)	(4,000,000)
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	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	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	1,000,000	(5,000,000)	6,000,000	(26,000,000)
Credit default contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(2,000,000)		(3,000,000)	(5,000,000)
Credit default 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	(2,000,000)		(3,000,000)	(5,000,000)
Credit default 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
Credit default 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
Credit default 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	0
Accumulated net gain (loss) from cash flow hedges attributable to parent \| Reclassification out of accumulated other comprehensive income \| (Loss) gain reclassified from AOCI into income (net investment income)
Derivative Instruments, Gain (Loss)
Gain (loss) reclassified from AOCI into income	(2,000,000)	1,000,000	(1,000,000)	1,000,000
Accumulated net gain (loss) from cash flow hedges attributable to parent \| Reclassification out of accumulated other comprehensive income \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Gain (loss) reclassified from AOCI into income	$ 0	$ 0	$ 0	$ 3,000,000

Derivative Financial Instruments (Details 4) $ in Millions	Sep. 30, 2017 USD ($) counter-party	Dec. 31, 2016 USD ($) counter-party
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash and securities pledged as collateral by counterparties	$ 3
Securities pledged as collateral to counterparties	18
Collateral posted under MNAs for contracts containing credit-risk-contingent features	7	$ 0
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 11
Credit Derivatives
Number of counter- parties \| counter-party	4	8
Notional amount	$ 260	$ 888
Credit exposure	4	23
Exposure, net of collateral	4	12
Gross liability fair value of contracts containing credit-risk-contingent features	20	9
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(8)	(7)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 5	$ 2
AA-
Credit Derivatives
Number of counter- parties \| counter-party	1	2
Notional amount	$ 11	$ 80
Credit exposure	0	2
Exposure, net of collateral	$ 0	$ 2
A plus
Credit Derivatives
Number of counter- parties \| counter-party	3	5
Notional amount	$ 249	$ 698
Credit exposure	4	20
Exposure, net of collateral	$ 4	$ 9
A-
Credit Derivatives
Number of counter- parties \| counter-party	0	1
Notional amount	$ 0	$ 110
Credit exposure	0	1
Exposure, net of collateral	$ 0	$ 1

Derivative Financial Instruments (Details 5) $ in Millions	9 Months Ended
Derivative Financial Instruments (Details 5) $ in Millions	Sep. 30, 2017 USD ($) entity	Dec. 31, 2016 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Term of credit default swaps (in years)	5 years
Credit Derivatives
Notional amount	$ 4,659	$ 3,776
The number of reference entities generally included in a CDX index \| entity	125
Credit default contracts
Credit Derivatives
Notional amount	$ 105	245
Fair value	1	(1)
Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	25	65
Fair value	0	1
Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount		100
Fair value		(3)
Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	80	80
Fair value	1	1
AA \| Credit default contracts
Credit Derivatives
Notional amount	1	21
AA \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	20
AA \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount		0
AA \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	1	1
A \| Credit default contracts
Credit Derivatives
Notional amount	19	29
A \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	10
A \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount		0
A \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	19	19
BBB \| Credit default contracts
Credit Derivatives
Notional amount	66	185
BBB \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	20	35
BBB \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount		100
BBB \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	46	50
BB and lower \| Credit default contracts
Credit Derivatives
Notional amount	19	10
BB and lower \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	5	0
BB and lower \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount		0
BB and lower \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	$ 14	$ 10

Reserve for Property-Liability Insurance Claims and Claims Expense (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Incurred claims and claims expense related to:
Prior years	$ (321)
Property-Liability
Activity in the reserve for property-liability insurance claims and claims expense:
Balance as of January 1	25,250	$ 23,869
Less reinsurance recoverables	6,184	5,892
Net balance as of January 1	19,066	17,977
Incurred claims and claims expense related to:
Current year	16,971	17,018
Prior years	(321)	120
Total incurred	16,650	17,138
Claims and claims expense paid related to:
Current year	10,052	10,210
Prior years	5,784	5,804
Total paid	15,836	16,014
Net balance as of September 30	19,897	19,101
Plus reinsurance recoverables	7,257	6,349
Balance as of September 30	27,154	25,450
SquareTrade \| Property-Liability
Activity in the reserve for property-liability insurance claims and claims expense:
SquareTrade acquisition as of January 3, 2017	$ 17	$ 0

Reserve for Property-Liability Insurance Claims and Claims Expense (Details 2) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Increase (decrease) in claims and claims expense
Prior years claims and claims adjust expense, favorable	$ 321
Auto
Increase (decrease) in claims and claims expense
Prior years claims and claims adjust expense, favorable	336
Catastrophe
Increase (decrease) in claims and claims expense
Total incurred	2,640	$ 2,270
Non Catastrophe Reestimates \| Homeowners
Increase (decrease) in claims and claims expense
Prior years claims and claims adjust expense, favorable	86
Reserve Adjustments \| Discontinued Lines and Coverages Product Line
Increase (decrease) in claims and claims expense
Prior years claims and claims adjust expense, favorable	93
Reserve Adjustments \| Other personal lines
Increase (decrease) in claims and claims expense
Prior years claims and claims adjust expense, favorable	(8)
Catastrophe Loss Re-estimates
Increase (decrease) in claims and claims expense
Prior years claims and claims adjust expense, favorable	$ 10

Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Reinsurance (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property-liability insurance claims and claims expense (1)
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	$ 1,268	$ 493	$ 1,523	$ 895
Life and annuity contract benefits
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	47	25	164	172
Interest credited to contractholder funds
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	6	7	17	18
Property-liability insurance premiums earned
Reductions to premiums and contract charges due to reinsurance premium ceded amounts
Property-liability insurance premiums earned	245	244	745	741
Life and annuity premiums and contract charges
Reductions to premiums and contract charges due to reinsurance premium ceded amounts
Life and annuity premiums and contract charges	$ 75	$ 78	$ 225	$ 230

Company Restructuring (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Company Restructuring (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and related charges	$ 14	$ 5	$ 77	$ 21

Company Restructuring (Details 2) $ in Millions	9 Months Ended
Company Restructuring (Details 2) $ in Millions	Sep. 30, 2017 USD ($)
Restructuring Reserve
Balance as of December 31, 2016	$ 2
Expense incurred	64
Adjustments to liability	4
Payments applied against liability	(31)
Balance as of September 30, 2017	31
Employee costs
Restructuring Reserve
Balance as of December 31, 2016	0
Expense incurred	46
Adjustments to liability	4
Payments applied against liability	(24)
Balance as of September 30, 2017	18
Cumulative amount incurred to date for active programs	101
Exit costs
Restructuring Reserve
Balance as of December 31, 2016	2
Expense incurred	18
Adjustments to liability	0
Payments applied against liability	(7)
Balance as of September 30, 2017	13
Cumulative amount incurred to date for active programs	$ 80

Guarantees and Contingent Liabilities (Details)						1 Months Ended				9 Months Ended	12 Months Ended
Guarantees and Contingent Liabilities (Details)	Sep. 30, 2017 USD ($) plaintiff	Jan. 27, 2017 appeal case	Jul. 06, 2016 plaintiff	May 02, 2016 plaintiff	Jan. 01, 2015 plaintiff	Jun. 30, 2017 trial plaintiff	Dec. 31, 2016 USD ($) plaintiff	Jun. 30, 2015 plaintiff	Dec. 31, 2007 claim	Sep. 30, 2017 USD ($) claim	Dec. 31, 2001 employee case	Sep. 16, 2014 adjuster
Guarantees:
Limitations or indemnifications of reinsurance agreements \| $	$ 0									$ 0
Proceedings:
Number of class action cases									2	2	2
Loss contingency, number of plaintiffs		3	118	498	460			10			32
Loss contingency, number of trials \| trial						2
Reserves for asbestos claims \| $	908,000,000						$ 912,000,000			$ 908,000,000
Reinsurance recoverables for asbestos claims \| $	428,000,000						444,000,000			428,000,000
Reserves for environmental claims \| $	175,000,000						179,000,000			175,000,000
Reinsurance recoverables for environmental claims \| $	35,000,000						$ 40,000,000			35,000,000
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 \| $										300,000,000
Residual guarantee
Guarantees:
Potential leased automobiles residual value \| $	$ 32,000,000									$ 32,000,000
Guarantee obligations term, low end of range										1 year
Guarantee obligations term, high end of range										4 years
Judicial Ruling
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff						1
Pending Litigation
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff	413					8
Fair Labor Standards Act
Proceedings:
Loss contingency, pending claims, number \| adjuster												105
New York Labor Law
Proceedings:
Loss contingency, pending claims, number \| adjuster												137
Appeal Denied \| Judicial Ruling
Proceedings:
Loss contingency, number of appeals \| appeal		1
Appeal Granted \| Judicial Ruling
Proceedings:
Loss contingency, number of appeals \| appeal		2
Signed Releases Knowingly and Voluntarily
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff								2
Did Not Sign Releases Knowingly and Voluntarily
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff								8
Plaintiffs Asserted Suffered Loss
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff							2
Individual Plaintiffs \| Pending Litigation
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff	82
Individual Plaintiffs \| Settled Litigation
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff	3
Phase III \| Pending Litigation
Proceedings:
Loss contingency, number of plaintiffs \| plaintiff	8

Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pension benefits
Components of net periodic cost
Service cost	$ 28	$ 28	$ 85	$ 84
Interest cost	66	71	198	214
Expected return on plan assets	(102)	(99)	(306)	(298)
Amortization of prior service credit	(14)	(14)	(42)	(42)
Amortization of net actuarial loss (gain)	48	44	142	131
Settlement loss	94	7	110	23
Net periodic postretirement credit	120	37	187	112
Postretirement benefits
Components of net periodic cost
Service cost	2	2	6	7
Interest cost	4	4	11	13
Amortization of prior service credit	(6)	(5)	(18)	(16)
Amortization of net actuarial loss (gain)	(6)	(2)	(18)	(18)
Net periodic postretirement credit	$ (6)	$ (1)	$ (19)	$ (14)

Benefit Plans Narrative (Details) - Pension benefits - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Components of net periodic cost
Settlement loss	$ 94	$ 7	$ 110	$ 23
Corporate and Other
Components of net periodic cost
Settlement loss			$ 86

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Supplemental Cash Flow Information [Abstract]
Non-cash modifications of certain mortgage loans, fixed income securities, limited partnership interests and other investments, as well as mergers completed with equity securities	$ 31	$ 290
Non-cash financing activities related to the issuance of shares for vested restricted stock units	42	40
Debt acquired		34
Net change in proceeds managed
Net change in fixed income securities	129	(436)
Net change in short-term investments	(157)	181
Operating cash flow used	(28)	(255)
Net change in cash	1	0
Net change in proceeds managed	(27)	(255)
Change in Liabilities for Collateral [Roll Forward]
Liabilities for collateral, beginning of period	(1,129)	(840)
Liabilities for collateral, end of period	(1,156)	(1,095)
Operating cash flow provided	$ 27	$ 255

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pre-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$ 300	$ 350	$ 1,165	$ 1,685
Less: reclassification adjustment of realized capital gains and losses	107	53	245	(156)
Unrealized net capital gains and losses	193	297	920	1,841
Unrealized foreign currency translation adjustments	43	(11)	55	18
Unrecognized pension and other postretirement benefit cost arising during the period	(5)	1	(8)	(6)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(116)	(30)	(174)	(78)
Unrecognized pension and other postretirement benefit cost	111	31	166	72
Other comprehensive income	347	317	1,141	1,931
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(105)	(123)	(408)	(589)
Less: reclassification adjustment of realized capital gains and losses	(37)	(19)	(86)	55
Unrealized net capital gains and losses	(68)	(104)	(322)	(644)
Unrealized foreign currency translation adjustments	(15)	4	(19)	(6)
Unrecognized pension and other postretirement benefit cost arising during the period	3	0	5	3
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	41	10	61	27
Unrecognized pension and other postretirement benefit cost	(38)	(10)	(56)	(24)
Other comprehensive income (loss), Tax	(121)	(110)	(397)	(674)
After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	195	227	757	1,096
Less: reclassification adjustment of realized capital gains and losses	70	34	159	(101)
Unrealized net capital gains and losses	125	193	598	1,197
Unrealized foreign currency translation adjustments	28	(7)	36	12
Unrecognized pension and other postretirement benefit cost arising during the period	(2)	1	(3)	(3)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(75)	(20)	(113)	(51)
Unrecognized pension and other postretirement benefit cost	73	21	110	48
Other comprehensive income, after-tax	$ 226	$ 207	$ 744	$ 1,257

Subsequent Events (Details) $ in Millions	1 Months Ended	3 Months Ended			9 Months Ended
Subsequent Events (Details) $ in Millions	Oct. 31, 2017 USD ($) segment	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) segment	Sep. 30, 2016 USD ($)	Jan. 03, 2017 USD ($)	Dec. 31, 2016 USD ($)
Subsequent Event [Line Items]
Number of reportable segments \| segment					4
Goodwill			$ 2,309		$ 2,309			$ 1,219
Change in unrealized net capital gains and losses			125	$ 193	598	$ 1,197
Subsequent Event
Subsequent Event [Line Items]
Number of reportable segments \| segment	7
Allstate Life \| Subsequent Event
Subsequent Event [Line Items]
Goodwill	$ 170
Allstate Benefits \| Subsequent Event
Subsequent Event [Line Items]
Goodwill	100
Allstate Annuities \| Subsequent Event
Subsequent Event [Line Items]
Goodwill	$ 125
Scenario, Forecast
Subsequent Event [Line Items]
Increase in future policy benefit reserves		$ 550
Change in unrealized net capital gains and losses		(350)
Scenario, Forecast \| Allstate Annuities
Subsequent Event [Line Items]
Goodwill, impairment loss		$ 125
SquareTrade
Subsequent Event [Line Items]
Goodwill			$ 1,090		$ 1,090		$ 1,080